21.6.2. Adjusting TIN-Related Problems

(1) Resequencing on the Individual Master File (IMF) is often involved with the validity of a TIN.

1. Each person may have only one TIN.

2. Once a number is assigned, it cannot be assigned to someone else. An SSN is never "recycled" or reused.

   Note: If a taxpayer has more than one SSN advise them to contact SSA if they have not already done so, to determine which SSN they should usi to file their tax returns.

3. A transposition error in a TIN or name change, without notification to SSA, may cause a TIN mismatch with the IRS records. This is referred to as an "invalid" condition.

4. The computer cross references all TINs to the SSA data and identifies invalid conditions.

(2) Resequencing accounts is accomplished by the following methods:

• Automatic resequencing

• Inputting a name control and name line change

• Updating the new SSN field

(1) These procedures are followed when resequencing the invalid segment to the valid, the valid segment to the invalid, or from one TIN to another.

(2) Research for no merge (NMRG) conditions. See IRM 21.6.2.3.1, NMRG Conditions.

(3) Research CC IMFOL for the valid and invalid accounts for both TINs (the "to" and "from" TINs) prior to resequencing an account. The resequencing action moves all tax periods present in the account. Specific tax periods cannot be moved independently. Only merge the account when ALL modules under the TIN(s) belong to the same taxpayer.

(4) Research CC IMFOL with definer "Q" for resequencing transactions to prevent duplicate input and/or unpostables. See Document 6209 Section 8B, Master File Codes (Unpostable and Resequence), for resequence transactions.

(5) Use the table below to determine next account action(s) based upon CC IMFOLQ results:

(6) Monitor CC IMFOLQ for any new posted MFT 55 TC 960 and CC FINK every 30-45 days for any future MFT 55. If any new are found, elevate per previous paragraph, box 3.

(7) On the "from" TIN, reinstate all recoverable lower level modules dropped to retention in 1994 and later using CC IMFOL with definer "B". See IRM 2.3.51.4, Restoring RRR Tax Modules to Master File.

(8) Vestigial modules, dropped to retention prior to 1994 and unrecoverable modules, are reinstated if there is a module for the same year on both the "to" and "from" accounts. This is a NMRG condition and must be reassigned to NMRG. See IRM 21.6.2.3.4, Reassignment of NMRG Cases due to Site Specialization.

(9) Do not input the resequencing transaction until the reinstatements are complete.

(10) If the return posted to the invalid segment of the same TIN because of a name control mismatch, follow the appropriate procedures in IRM 3.13.5.120, Correcting a Taxpayer’s Name.

(11) If the return posted to the invalid segment of a different TIN, see IRM 3.13.5.118, Taxpayer Identification Number (TIN) Changes (generates a TC 011).

(12) When resequencing an ITIN to another ITIN, see IRM 3.21.263.8.5, Merges Involving ITIN, to determine which number should be the "from" account and which should be the "to" account. Revoke the ITIN for the "from" account per the instructions in IRM 21.6.2.4.1.3, ITIN to SSN Name Controls Match, (5) through (8), after all transactions have posted.

(1) Before following these procedures research for no merge conditions. See IRM 21.6.2.3.1, NMRG Conditions.

(2) If the name on the ITIN matches the valid SSN "SSA N/C" on CC INOLE with definer "S", research the status of the ITIN in the upper right part of the screen.

1. If the ITIN is showing as active (A) or inactive (I), on CC INOLES, input only the new SSN and remarks on CC INCHG.

2. If the ITIN has been revoked, no indicator is present on CC INOLES, include TC 040 with the new SSN and remarks on CC INCHG.

(3) Whether the ITIN belongs to the primary, secondary or dependent, if there are tax years on CC IMFOLI or there is entity data on CC IMFOLE, the ITIN must be resequenced to the new SSN. If any modules are in retention, see IRM 21.6.2.4.1.2, Resequencing Action Required. When completing a TIN change of a secondary taxpayer’s TIN who files Married Filing Joint Return (FS 2), a two-step correction process may be required. See IRM 3.13.5.124, Add, Delete or Change Spouses’ TIN (generates a TC 017), for more information.

(4) If working a CII case and the ITIN being merged is for the primary, after the ITIN has merged to the SSN, update the ITIN on the CII case to the new SSN. IDRS displays two controls on the new SSN that appear for this CII case. The one with the same control number as the open CII case is the valid control. The other one is from when the account merged and must be manually closed.

(5) If working an e-4442 referral and the ITIN being merged is for the primary, after the ITIN has merged to the SSN, a new control base will generate on the SSN and manually closed prior to closing the referral.

(6) After the merge to the SSN is complete, complete a Form 4442/e-4442 from the primary account for each ITIN associated with the case and being revoked; primary, secondary and dependents. Route Form(s) 4442/e-4442 to the Submission Processing Center (SPC) ITIN Unit to request the revocation of the ITIN(s). See IRM 3.21.263.8.6, Form 4442, Inquiry Referral, for information required on the Form 4442/e-4442. Include a copy of CC INOLEX of the ITIN showing the merge to the SSN.

(7) To monitor for the revocation, establish a new control on IDRS under the primary account. Use activity code "ITRVK/XXX" (XXX = Julian purge date), status code M, category code MISC and the current date for the received date.

(8) After all required actions have been taken on the SSN the CII case or a Form 4442/e-4442 referral can be closed.

(9) Once all related ITINs have been revoked and posted to RTS (the Status on RTS displays "rejected" and/or Reason Code "R15") close the "MISC" base.

(1) Research for no merge conditions. See IRM 21.6.2.3.1, NMRG Conditions.

(2) If the name on the ITIN and the name on the SSN are both valid, update the name on the ITIN.

1. On CC INCHG, include the new name control, new name line, year name line and filing status.

   Caution: Do not input a specific tax year unless required to resolve the account. Follow guidance for input and monitoring when specific tax year(s) are needed in IRM 3.13.5.120.3, Determining Name Line Used with TC 013 Corrections.

2. Monitor for the ITIN to move to the invalid segment. See IRM 21.5.5.4.2.1, Cycling Transactions, for information to determine a monitoring timeframe.

3. Update the invalid segment of the ITIN with the new SSN.

(3) For additional information see IRM 3.13.5.120, Correcting a Taxpayer’s Name.

(4) After the merge is complete, follow paragraphs 4 through 8 in IRM 21.6.2.4.1.3, ITIN to SSN Name Controls Match.

(5) Whether the ITIN belongs to the primary, secondary or dependent, if there are tax years on CC IMFOLI or there is entity data on CC IMFOLE, resequence the ITIN to the new SSN. If any modules are in retention, see IRM 21.6.2.4.1.2, Resequencing Action Required.

(1) Analyze the case and identify the correct and incorrect taxpayer for the common number (CN) as follows:

1. "Taxpayer A" correctly used the TIN and remains on the CN.

2. "Taxpayer B" incorrectly used the TIN. "Taxpayer B’s" return is input to their valid TIN.
   

   Caution: If "taxpayer B’s" return must be reprocessed AND "taxpayer B’s" return shows a primary and a secondary taxpayer, research the secondary taxpayer's account to determine if a return has already been filed by the secondary taxpayer for the tax year in question. If a return has been filed by the secondary taxpayer, resolve the duplicate filing issue before reprocessing "taxpayer B’s" return. Not resolving the duplicate filing issue results in the generation of a CP 36F case. SeeIRM 21.6.7.4.5, Multiple Uses of Taxpayer Identification Numbers - CP 36F (DUPTIN Filing Condition).

(2) If either account contains an offset (TC 896 or TC 898) to a state or federal agency, take no action before referring to IRM 21.4.6.4.2.4, Child Support TOP Offsets, and IRM 21.4.6.5.17, Mixed Entity Cases with TOP Offsets.

(3) When impacted tax years include 2018-2021, refer to IRM 21.6.2.4.7, Economic Impact Payment (EIP) and Multiple Taxpayers Using the Same TIN, before taking any action.

(4) When Advance Child Tax Credit payments, identified by a TC 290 .00 with Credit Reference Number (CRN) 272 are present on tax year 2021, refer to IRM 21.6.2.4.8, Advance Child Tax Credit (AdvCTC), before taking any action.

(5) Consider possible changes to the Return Processable Date (RPD). See IRM 21.5.6.4.17, I- Freeze.

(1) The following procedures are required when a valid different TIN is found for "taxpayer B" and "taxpayer A" posted first:

1. Input TC 290 blocking series (BS) 00 and use "taxpayer A’s" return as the source document. Notate in remarks "Mixed Entity".

   Note: If "taxpayer A’s" return is not present, input TC 290 .00, BS 05, and "No Source Document (NSD)" to release the -A freeze if present.

2. Input TC 971 with action code (AC) 002. Enter "taxpayer B’s" TIN as a cross-reference. Refer to IRM 21.5.1.4.8, Transaction Code 971, for additional guidance.

3. Verify the entity on "taxpayer A’s" account is correct. Update if appropriate.

4. If "taxpayer B’s" account is not yet established, input TC 000. Refer to IRM 3.13.5.117, Establishing a New Account (TC 000), for additional guidance.

5. Establish a name line for the year being reprocessed or an earlier name line to prevent unpostable code (UPC) 188 reason code 0. See IRM 21.5.2.4.23.8, IDRS Account Actions.

6. Transfer "taxpayer B's" payments to their account.

7. Take the appropriate steps to post "taxpayer B’s" tax information to their valid TIN. Refer to IRM 21.5.2.4.23, Reprocessing Returns/Documents, for additional required actions.

   Note: If a refund was issued from the CN to "taxpayer B", move the refund transaction to "taxpayer B’s" TIN. See IRM 21.5.2.4.23.10, Moving Refunds. Maintain a monitor control base on IDRS on both accounts until all resulting transactions post correctly.

8. If the taxpayer or the tax return preparer used an invalid TIN, send a Letter 257C, SSN Invalid; Contact SSA (Refund Delay), advising the taxpayer of the valid TIN to use. If Submission Processing (SP) processed the return using a different TIN, send a Letter 257C but do not mention the TIN SP edited on the return during processing.

(1) The following procedures are used when a valid different TIN is found for "taxpayer B" and "taxpayer B" posted first:

1. Adjust the CN account to reflect "taxpayer A’s" return data using BS 00. If working on CII, the adjustment is still input using BS 00 since "taxpayer A’s" return is considered the original return. It is input as a NSD.

   Note: If "taxpayer A" has not filed a return, input a full back out of "taxpayer B’s" return.

2. If "taxpayer A’s" return was received after the return due date, refer to IRM 20.2.4.5, Unprocessable Returns, and IRM 20.2.4.5.1, Updating the RPD on Unprocessable Returns. For the purpose of updating the RPD, this IRM section is used for official guidance.

3. If "taxpayer A" has a balance due and failure to pay penalty is required, refer to IRM 20.1.2.2.6.3, Wrong Return Posted First, for additional guidance.

4. Use priority code (PC) 1 if the return requires DIF scoring. See IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review", for procedures.

5. Use the appropriate hold code (HC) to prevent issuing erroneous notices and/or an erroneous refund to "taxpayer A". Use HC 4 when a manual refund is required.

6. If "taxpayer B" requested a direct deposit and the refund did not generate due to the TC 976, allow the TC 971 AC 001 to post before inputting the adjustment. This prevents the refund from being direct deposited into "taxpayer B’s" account.

7. If "taxpayer B" received a refund by direct deposit, input a TC 971 action code (AC) 850 to stop any additional direct deposit refunds being issued. Review the current year and two previous tax years for direct deposit refunds and if needed input the TC 971 AC 850 on any year where "taxpayer B" received a direct deposit refund.

Reminder: A post delay code (PDC) may be needed on the adjustment if a TC 971 AC 850 is input.

8. See (2) below for ACA consideration if adjusting the 2014 tax year or later.

9. Combat Zone (CZ) accounts, identified by a -C freeze, indicate a taxpayer who is, or was serving in a designated combat zone area. The -C freeze stays on the account even after the taxpayer is no longer in the CZ. When working an account that contains a -C freeze, additional research is required to determine the taxpayer's CZ status.

1. Research CC IMFOLE for the Combat indicator on Line 11, to determine the correct action to take.

2. If Combat indicator is "1," then the taxpayer is still serving in a combat zone. Any compliance activity such as assessing or collection of tax is prohibited. If the taxpayer has other issues or requests information, you may work these other issues and contact the taxpayer, if needed.

3. If Combat indicator is "2," then the taxpayer is no longer a combat zone participant. Follow normal procedures to work the case.

10. If the First Time Home Buyer Credit (FTHBC) is involved and requires adjustment, see IRM 21.6.4.4.17.4, Manually Adjusting the Recapture Amount.

11. If the account contains an offset (TC 896 or TC 898) to a state or federal agency and requires adjustment, see IRM 21.4.6.5.17, Mixed Entity Cases with TOP Offsets.

12. Transfer "taxpayer B’s" payments to their valid account.

13. Input TC 971 with AC 001. Enter "taxpayer B’s" TIN as cross-reference. Refer to IRM 21.5.1.4.8, Transaction Code 971, for additional guidance.

14. Adjust the Assessment Statute Expiration Date (ASED), if necessary. Notate on CII "DUP (DLN) (last 6 digits of the DLN xxxxx-x) becomes the original".

Reminder: Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period, for more information prior to any adjustment.

15. Correct the entity module to reflect "taxpayer A’s" current address.

16. Input TC 971 with AC 017 on "taxpayer B’s" account. Refer to IRM 21.5.1.4.8, Transaction Code 971, for additional guidance. Enter "taxpayer A’s" TIN as a cross-reference. If "taxpayer B’s" account is not yet established, input TC 000, monitor for it to post then input the TC 971 AC 017. Refer to IRM 3.13.5.117, Establishing a New Account (TC 000), for additional guidance.

17. Take the appropriate steps to post "taxpayer B’s" tax information to the correct TIN. See (3) below.

18. If a refund was issued on the CN to "taxpayer B", move it to "taxpayer B’s" valid TIN. See IRM 21.5.2.4.23.10, Moving Refunds, for moving refund procedures. Maintain a monitored control base on IDRS on both accounts until all resulting transactions post correctly.

19. If the taxpayer or the tax return preparer used an invalid TIN, send a Letter 257C, SSN Invalid; Contact SSA (Refund Delay), advising "taxpayer B" of the valid TIN to use. If SP processed the return using a different TIN, then send a Letter 257C but do not mention the TIN SP edited on the return during processing.

20. If "taxpayer A" indicates yes to the Presidential Election Campaign Fund (PECF) and "taxpayer B" did not, prepare a dummy Form 1040-X, Amended U.S. Individual Income Tax Return. Refer to procedures in IRM 21.6.7.4.12, Presidential Election Campaign Fund (PECF).

(2) For TY 2014 returns and later, correct "taxpayer A’s" account to reflect provisions of the Affordable Care Act (ACA).

1. Compute the Premium Tax Credit (PTC) and all related data elements. See IRM 21.6.3.4.2.12.4, Tools for Accessing ACA-Taxpayer Data, and IRM 21.6.3.4.2.12.7, Premium Tax Credit (PTC) - Adjusting the Account.

2. Determine the taxpayer’s liability for the Shared Responsibility Payment (SRP). See IRM 21.6.4.4.20.3, Shared Responsibility Payment Overview.

(3) Take the following into consideration when processing "taxpayer B’s" tax information to their valid TIN:

(4) If "taxpayer A" is due a refund, the refund is systemically released unless an exception applies. See IRM 21.4.4.3, Why would a Manual Refund Be Needed. When it is necessary to issue a manual refund, HC 4 is required on the adjustment. The manual refund should be issued before the return has been DIF Scored. Input a priority code (PC) 1 on the case. Refer to IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional guidance on issuing a manual refund.

(5) If "taxpayer A" (or the spouse of "taxpayer A") filed an injured spouse claim, correct the account to reflect "taxpayer A’s" information and then refer the Debtor Master File Case (DMFC) to the specialty group:

1. Follow all instructions in (1) (2) and (3) above except use HC 4 on the adjustment and/or use TC 570 on credit transfers to hold the overpayment.

2. After inputting all account actions, close the CII case.

3. Open a new CII case with category code "DMFC". Assign the case to the appropriate IDRS number located on the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP. For the required fields, input the doc type as "Injured Spouse Claim", use program and function code "ADJ-710-97140," "Priority 2" and reason "Form 8379 attached".

   Reminder: If your site works Injured Spouse case work, do not reassign the case. The case should be retained and worked within your site.

4. Link the new CII case to the closed CII case.

(1) If, after complete research and corresponding with the taxpayer, a different valid TIN is not located for "taxpayer B", see IRM 25.23.4.2, Identity Theft (IDT) Paper Process Overview, for procedures.

(1) When a mixed entity situation occurs on an invalid SSN, take the following actions:

(1) Use the following procedures when a TC 576 is present and "taxpayer A" posted first.

(1) When a valid SSN is located, "taxpayer B’s" return posted first and "taxpayer A’s" return contains no Unallowable Code (UA) condition, take the following action:

1. Route to Examination.

2. Request closure of AIMS on the CN.

3. Annotate the closing action taken on the account. Include the SSN and period to which "taxpayer B’s" return was processed. Examination monitors the account for posting of the reprocessed return.

Note: MF processing freezes the refund and establishes AIMS if an UA condition is present.

4. Suspend case, monitoring for the AIMS closure.

5. Upon closure, follow procedures in IRM 21.6.2.4.2.3, Valid TIN Located - "Taxpayer B" Posted First.

(2) When a valid SSN is located, "taxpayer B’s" return posted first and there is an UA condition on "taxpayer A’s" return, take the following action:

1. Route to Examination.

2. Request input of a partial TC 300 .00 with HC 4 to release "-Q" freeze.

3. Suspend the case.

Note: AIMS remains open.

4. Upon confirmation, follow procedures in IRM 21.6.2.4.2.3, Valid TIN Located - "Taxpayer B" Posted First.

5. Route "taxpayer A’s" return to Examination for resolution of the UA condition.

6. Annotate all pertinent information (e.g., John Maple ["taxpayer A"] posted as TC 976 on SSN 000–00–0001. Return contains UA Earned Income Tax Credit (EITC). John Maple ["taxpayer B"] reprocessed to correct SSN 000–00–0000).

(1) When a mixed entity occurs on an invalid SSN, use procedures in IRM 21.6.2.4.2.5, Invalid SSN - Mixed Entity.

(1) Analyze the case to identify the taxpayers involved:

• "Taxpayer 1" - taxpayer who has used the CN for the most years or the taxpayer who has the most statute year returns posted to the CN.

• "Taxpayer 2" - taxpayer who has not used the CN for the most years or has the fewest statute year returns posted to the CN.

(2) Analyze the case to determine which condition exists:

• Condition 1 - "taxpayer 1" posted first.

• Condition 2 - "taxpayer 2" posted first.

(3) Use local procedures to obtain an IRSN for each taxpayer. IRSN 1 is issued for "taxpayer 1". IRSN 2 is issued for "taxpayer 2". When establishing IRSN 2, set the appropriate Scrambled SSN Indicator (SCI) as shown in Exhibit 21.6.2-1, Scrambled SSN Indicators.

(4) Research to determine if there is a closed or existing scrambled SSN case for the same taxpayer.

(5) If substantiation of identity theft is received from one taxpayer after the Letter 239C or Letter 5064C, 40-day suspense period (70-days for overseas taxpayers), has expired, follow procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

(6) If substantiation of identity theft is received from both taxpayers, follow procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

(7) If at any time a completed Letter 239C or Letter 5064C questionnaire is received after the 40-day suspense period has expired, 70-days for overseas taxpayers, follow the procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

(1) Follow the If/Then table below when scrambling a True/Default True Scrambled SSN Case:

(1) Only release the refund when the taxpayer has provided the required documents to support their identity and is supported by your account research, or has responded to the Letter 239C or Letter 5064C with a complete and accurate questionnaire and all of the following:

1. Name

2. Current telephone number

   Note: If the taxpayer indicates verbally or in writing that they do not have a telephone, consider this requirement as met. If the taxpayer indicates that they do not wish to give out their telephone number, do not consider the requirement as met.

3. Copy of Social Security card

4. Copy of a current document verifying the taxpayer's address. Acceptable current documentation includes a copy of a bank statement, lease agreement, mortgage statement or utility bill.

   Exception: Required when in response to Letter 239C or Letter 5064C. When documentation provided is not in response to a letter (e.g., TAS referral), and complete and thorough account research supports their identity, this document is not required.

5. Copy of a document to verify the taxpayer's identity. Acceptable documentation is a copy of a driver's license, state identification card, passport or other federal or state government issued photo identification which is valid and unexpired.

(2) If the taxpayer is claiming a hardship, which may warrant the issuance of a manual refund, refer the case to The Taxpayer Advocate Service (TAS) for hardship determination per IRM 21.4.4.3, Why Would A Manual Refund Be Needed?

(3) Overpayment(s) a year old or older are transferred to Excess Collections when the account is scrambled. Allow an Accounts Maintenance Research (AMRH) transcript(s) to generate on account(s) with overpayment(s) less than a year old. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) and unidentified Remittance File (URF) for AMRH.

(1) These procedures are used when Condition 1 is present.

(2) Correct the CN entity information to agree with "taxpayer 1's" return.

(3) Edit the SSN on "taxpayer 1's" return to show IRSN 1.

(4) Reprocess "taxpayer 2's" return to IRSN 2. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for editing instructions. Edit with Computer Condition Code (CCC) 3 to hold the refund, if necessary. See IRM 21.6.2.4.3.3, Determining if Refund Should be Released.

(5) Transfer "taxpayer 2's" payment(s) from the CN to IRSN 2.

(6) Input TC 971, AC 002 on the CN to cross-reference to IRSN 2. Input TC 971, AC 017 on the IRSN to cross-reference the CN.

(7) Input a TC 290 .00, BS 00 (or if "taxpayer 1" filed an electronic return, use BS 05), on the CN to release the -A freeze. Use HC 4 if holding the overpayment. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released. Allow items requiring a valid primary TIN, i.e., EITC, primary exemption, and/or education credit, if "taxpayer 1" would otherwise qualify for the items.

(8) Resolve all conditions that would prevent the CN from merging. See IRM 21.6.2.4.1.2, Resequencing Action Required.

(9) Resequence CN to IRSN 1. Include appropriate scrambled SSN indicator as shown in Exhibit 21.6.2-1, Scrambled SSN Indicators.

(10) After "taxpayer 2's" return posts to IRSN 2, input TC 510 and/or TC 571 to release the refund, if appropriate. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released.

(11) If taxpayer(s) did not submit a complete Letter 239C response, transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) for AMRH. Allow an AMRH transcript(s) to generate on account(s) with overpayment(s) less than a year old. Also refer to IRM 21.2.4-3, AMRH FREEZE TABLE IMF/BMF, for additional guidance and IRM 21.6.2.4.3.3, Determining if the Refund Should be Released, for documentation required for a complete response.

(12) Establish a summary account on the CN to prevent returns from posting.

1. Input TC 000 with the appropriate scrambled SSN indicator and Mail Filing Requirement (MFR) 08 after the CN is completely resequenced to the IRSN 1.

2. Include all items shown on "taxpayer 1's" account. Use the current tax period for the year.

3. Enter the two-digit campus code and both IRSNs on the second name line.

   Note: Omit the hyphens in IRSNs to allow space to input three IRSNs, if necessary.

(13) Use the table below to determine next account or case action(s).

(1) Use these procedures when Condition 2 is present.

(2) Correct the CN entity information to agree with "taxpayer 1's" return.

(3) Edit the SSN on "taxpayer 1's" return to show IRSN 1.

(4) Reprocess "taxpayer 2's" return to IRSN 2. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for editing instructions. Edit the return with the appropriate Computer Condition Code. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released.

1. Use CCC "3" to hold the refund, if necessary.

2. Use CCC "O" if a refund was previously issued to "taxpayer 2" on the CN.

(5) Transfer "taxpayer 2’s" payments from the CN to IRSN 2. For additional information see IRM 21.5.8, Credit Transfers.

(6) If a refund was issued on the CN to "taxpayer 2", move the refund. See IRM 21.5.2.4.23.10, Moving Refunds, for instructions.

(7) Input TC 971, AC 001, on the CN to cross-reference the TC 150 to IRSN 2. Input TC 971, AC 017 on the IRSN to cross-reference the CN.

(8) Math verify "taxpayer 1's" return. Adjust the CN to agree with "taxpayer 1's" return using BS 00. Use procedures in IRM 21.6.2.4.2, Mixed Entity Procedures, to delete the invalid taxpayer’s information from the account. Use HC "4" to hold the refund, if applicable. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released. Notate in remarks "Scrambled SSN - DUP becomes original."

(9) Forward "taxpayer 1's" return to Examination for DIF scoring if it meets any of the criteria in IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review". Use local procedures.

(10) Correct the Return Processable Date if necessary using the date of the TC 976. See IRM 21.5.6.4.17, I- Freeze.

(11) Resolve all conditions that would prevent the account from merging. See IRM 21.6.2.4.1.2, Resequencing Action Required.

(12) Resequence the CN to IRSN 1.

(13) After "taxpayer 2's" return posts to IRSN 2, input TC 510 and/or TC 571 to release the refund, if appropriate.

(14) If taxpayer(s) did not submit a complete Letter 239C response, transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) and Unidentified Remittance File (URF) for AMRH. Allow an AMRH transcript(s) to generate on account(s) with overpayment(s) less than a year old. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released, for documentation required for a complete response.

(15) Establish a summary account on the CN to prevent any returns from posting.

1. Input TC 000 with the appropriate scrambled SSN indicator and MFR 08 after the CN is completely resequenced to the IRSN 1.

2. Include all items shown on "taxpayer 1’s" account. Use the current tax period as the year.

3. Enter the two-digit campus code and both IRSNs on the second name line.

   Note: Omit the hyphens in IRSNs to allow space to input three IRSNs, if necessary.

(16) If a Letter 239C response is received after a case has been closed, reassign the case to the designated IDRS number and link the new information to the prior CII case. Send a courtesy e-mail to the designated employee to alert the employee of the new information. If Form 3857 is sent to SSA, change the control category to "SSA2" and reassign the case to designated IDRS number. Also ensure the completed Form 3857 is scanned to the CII case. Refer to the AM Site Specialization Temporary Holding Numbers for a complete list of designated IDRS numbers. The Scrambled SSN Coordinator monitors the case for an SSA acknowledgement.

(17) Use the table below to determine next account or case action(s).

(1) Contact SSA using Form 3857, Request for SSN Clarification, only for True/Default True Scrambled SSN cases. Include any pertinent information with Form 3857 to assist in resolution of the problem.

(2) Complete Form 3857 with the following:

• Austin Service Center, 3651 S IH 35, STOP 1607, Austin, TX 78741-7855

• Date sent to SSA

• CN

  Caution: Do not include IRSNs on Form 3857.

• Tax period

• Check the appropriate box indicating why Form 3857 is being sent, i.e., original request, no acknowledgement, additional information follow-up, or no SSA response

• Complete name and address for each taxpayer

• Check the appropriate box indicating which income documents are attached

• Business name and address, if taxpayer was self-employed

• Year each taxpayer first used the CN

• Check the "Yes" box indicating if the taxpayer submitted a completed Letter 239C questionnaire

(3) Attach legible photocopies of all Form W-2(s). Delete all money amounts except Social Security and Medicare.

(4) Attach copies of the Letter 239C replies, including questionnaire, documentation, and correspondence.

(5) Notate on Form 3857 any information received regarding recent address changes for the taxpayer(s).

(6) SSA sends Form 3857 acknowledgement within 90 days. The acknowledgement includes the current status of Form 3857.

(7) If Form 3857 was sent to SSA, change control category to "SSA2", reassign the case to designated IDRS number located on the AM Site Specialization Temporary Holding Numbers listing. The Scrambled SSN Coordinator monitors the case for an SSA acknowledgement. Also ensure the completed Form 3857 is scanned to the CII case.

(8) If an SSA acknowledgement is not received within 90 days, the Scrambled SSN Coordinator contacts the SSA POC to determine the status of the Form 3857 package(s). If they are unable to obtain a response from SSA POC within 14 days, the issue is reported to the Headquarters Scrambled SSN Analyst.

(1) Scrambled cases must remain open in CII and maintain an IDRS control base utilizing control category SSA2 waiting for SSA’s Form 3857 response.

(2) Each case file must include:

• A completed history sheet

• Copies of all returns and Form W-2 ’s involved

• Copies of any taxpayer correspondence, including the Letter 239C replies

• Copy of the Form 3857 sent to SSA

(3) Attach or scan to the CII SSA2 case any taxpayer correspondence and other pertinent documentation with the related return for future reference.

(1) The procedures in this subsection indicating contact with SSA apply only to True/Default True Scrambled SSN cases.

(2) Send additional information received after a Form 3857 is sent to SSA, to SSA as a follow-up.

(3) Notify SSA if either taxpayer files a return after the year in question or additional information is received from either taxpayer.

1. Check the "Additional Information Follow-up" box in Part I of Form 3857.

2. Complete the top portion of page 2 of Form 3857.

3. Attach a copy of new Form W-2(s) (delete all money amounts except Social Security and Medicare) and/or other new identifying information.

(4) Scrambled cases closed without sending Form 3857 to SSA are identified by history item "no 239C reply", "no 5064C reply", or "SCI 10" or "SCI 20" on the CN summary account.

(5) If a completed Letter 239C questionnaire is received from one of the taxpayers after the case is closed, create a new case and research for any new information that could aid in common number ownership determination.

(1) When a Form 3857 response is received from SSA, or the taxpayer submits a response, take the appropriate action to close the case.

(2) Verbal SSA responses are unacceptable. If SSA calls with a Form 3857 response, request that they complete and return the Form 3857 response by fax or mail.

(3) If SSA does not verify the CN owner, the scrambled condition cannot be resolved. Process the accounts under the IRSNs until action by the taxpayer or SSA provides a resolution.

(4) Consider the following:

(5) If ownership of the CN is determined and the taxpayer submitted standard identity theft documentation, see IRM 25.23.2.3.6, When to Request Additional Information to Support an Allegation of Identity Theft, for acceptable documentation.

(6) If one-year passes, and no reply is received from SSA or the taxpayers, review the scrambled SSN case file and iIf necessary, send a second Form 3857 request to SSA. See IRM 21.6.2.4.3.6, Form 3857, Request for SSN Clarification, for required entries.

(1) Refer to the Scrambled SSN Coordinators, for the Scrambled SSN Point of Contact (POC).

(2) The coordinator ensures:

• Form 3857 is complete and legible

• Preliminary research is completed
  

  Note: This can be verified by reviewing the history sheet. The scrambled SSN coordinator must not "rework" the case.

• The case file is complete

• A completed Letter 239C questionnaire for at least one taxpayer is attached to Form 3857

(3) E-Fax any new Form 3857 package to SSA to Division of Earnings and Business Services (DEBS) at ≡ ≡ ≡ ≡ ≡ ≡ ≡. SSA will E-Fax acknowledgment of Form 3857 packet to the Scrambled SSN Coordinator within 90 days. If no acknowledgment is received within 90 days, send the Form 3857 packet to Division of Training and Program Support (DTSP) at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ who will notify DEBS the required acknowledgment has not been received.

(4) Only forward Form 3857 package to SSA when advised by AM HQ Analyst to the following address:

Social Security Administration
Division of Earnings Records Operation
6100 Wabash Avenue
Baltimore, MD 21215

(5) The coordinator will maintain a tracking record of all received referrals, including case status and actions.

(6) Forward a list of cases (CN) closed without an SSA Form 3857 response to the HQ AM Analyst through normal procedures. Submit the list weekly by close of business Friday. If Form 3857 was not sent to SSA, do not include the case on the list.

(1) Examination refers open AIMS cases with a UA Hold (TC 576) to AM as "possible scrambled SSN." (Follow local routing procedures.)

1. Examination secures all returns prior to referral.

2. Examination processing is suspended pending resolution of the SSN issue.

3. AM performs all necessary actions to resolve the SSN condition.

(1) A UPC 177 condition occurs when a module creating transaction attempts to post to the valid segment of an account that has been scrambled. Scrambled indicator 01, 10, 12, or 20 and MFR 08 is present.

(2) The Unpostable Function contacts the UPC 177 0 coordinator by E-fax using UPC 177 as the subject line for assistance in resolving the unpostable condition. See Scrambled SSN Coordinators and IRM 3.13.122.20.2, Unpostable Processing Code 177 Reason Code 0 Research and Referral Process. The E-fax contains information such as TIN, DLN and UPC sequence number. If the DLN is for a:

• Paper filed return, Unpostables includes a photocopy/scan of the return(s), Form W-2(s), Form 1099, etc with the request.

• MEF return, Unpostables notates the DLN of MEF which may be viewed on the Employee User Portal (EUP).

(3) The AM UPC 177 0 coordinator will maintain a tracking record of all referrals including research results, status and actions.

(4) The AM UPC 177 0 coordinator must make every effort to supply the Unpostable function with information to resolve the unpostable condition the same day contacted.

1. The coordinator reviews the case file to locate the correct IRSN. If the taxpayer is a new filer on the SSN, AM must obtain an IRSN for the new taxpayer. If the review and/or actions take longer than 5 business days, advise Unpostables, using CC UPCASZ, of the time frame necessary to obtain the information (e.g., 239C sent, suspend 45 days).

2. If needed, the coordinator inputs a TC 000 with the appropriate scrambled SSN indicator to establish the IRSN as shown in Exhibit 21.6.2-1, Scrambled SSN Indicators.

3. Create a new SCRM case and apply current determination procedures.

   Reminder: This includes residual accounts (SCI 01, SCI 20) and may require a Letter 239C, TIN-Related Problem Resolution. Make every effort to locate the second IRSN prior to sending the Letter 239C. Do not unlock a residual account unless a completed Letter 239C response is received.

4. The coordinator provides Unpostables with correct TIN by leaving a history on CC UPCASZ. The coordinator must update the history sheet and case file, and retain photocopies of the return and Form W-2(s) in the case file.

5. The coordinator sends a follow-up Form 3857 to SSA with any new information that assists in resolving the scrambled condition. Include copies of Form W-2(s), with all money amounts deleted except Social Security and Medicare amounts.

(1) Form 13708, Mixed Entity/Scrambled SSN Case History Sheet, is required when working a case being sent to SSA for resolution. All account actions, taxpayer contact and SSA contact are required for inclusion on the history sheet. Retain a copy of the completed Case History Sheet with the case. Scan/attach for CII inclusion only the pages of the Sheet that notate actions taken. Retain sufficient information to support the actions taken on the case.

(2) The history sheet should include the following:

• Common Number

• IRS received date or CP Notice date

• Tax Periods involved

• Each taxpayer’s name, address and IRSN if applicable

• Research requests (e.g., IMFOL, MFTRA), include dates

• DLN of returns requested, include date requested and date received

• Other TINs and actions, include dates and other actions taken

• All taxpayer contact

(3) Record all research information for all cases not sent to SSA for resolution on the TIN-Related Problem Research Sheet which can be found on the SERP IRM Supplements page.

(1) A NMRG–DUP transcript generates when:

• An entire account (entity and all tax modules,) is resequenced from one TIN to another TIN.

• Both TINs contain a TC 150 for the same period.

• One or two taxpayers may be involved which may include identity theft.

(2) Other computer checks determine if the TIN is correct for the resequenced accounts. These checks may cause the resequencing action to reject.

(1) NMRG–VEST transcripts generate when one or both accounts contain a Retention Register (vestigial) record for the same tax period. When one taxpayer is involved, determine which years are on the Retention Register File and review account information for those years.

(2) When two taxpayers are involved, see IRM 21.6.2.4.4.1.2, NMRG-DUP Two Taxpayers Involved.

(1) A NMRG-576 transcript is issued when a debit module or module with a TC 570 attempts to merge with a module containing a TC 576.

(2) When one taxpayer is involved, contact Examination to see if input of TC 577, to release TC 576, is possible. After the TC 577 posts, see IRM 21.6.2.4.4.1.1, NMRG-DUP One Taxpayer Involved.

(3) When two taxpayers are involved, see IRM 21.6.2.4.4.1.2, NMRG-DUP Two Taxpayers Involved.

(1) NMRG-400 transcripts generate when either account contains a module with a TC 400 freeze (Account Transfer Out), and there is a module with an equal tax period in the other account.

(2) Examine the accounts to determine if an account consolidation is required. If so, take the following action:

1. Prepare Form 12810, Account Transfer Request Checklist, requesting reversal of the TC 400.

2. Attach a copy of the transcript to the memo and forward to the Accounting function.

3. Suspend the case (follow local procedures) until you receive a reply indicating the TC 400 is reversed.

4. Consolidate the accounts once the reply has been received.

(1) NMRG-424 transcripts generate when a resequence fails because one or both accounts contain a module with an unreversed TC 424.

(2) Contact Examination for instructions. If TC 424 is reversed, follow normal NMRG-DUP procedures.

(1) NMRG-930 transcripts generate when:

• Two accounts attempt to merge as a result of an entity transaction changing TIN

• Both accounts contain a TC 930 posted for the same tax period

(2) Reverse TC 930 on the incorrect account.

(1) NMRG-RPS transcripts generate when:

• Two accounts attempt to merge

• Both accounts contain modules for the same period

• Both modules contain a TC 150 with multiple TC 610s (one is a Remittance Processing System (RPS) payment)

• The TC 610 and TC 150 DLNs do not match

• The payment DLN carries the return DLN plus 400 in the Julian date and is read by the computer as a return

(1) A NMRG-SCRAMBLED SSN (NMRGXXSSN) transcript generates when a resequencing account fails to merge because either the "from" or the "to" account contains an SCI of 01, 12, 13, 20, or 23 and an MFR 08. Reassign the case as SCRM. Refer to the AM Site Specialization Temporary Holding Numbers listing for the appropriate number.

(2) A NMRG-SCRAMBLED SSN (NMRGXXSSN) transcript may also generate when a resequencing account fails to merge because the SSN on the "to" account is equal to the spouse’s SSN in any name line on the "from" account. See IRM 21.6.2.4.2, Mixed Entity Procedures, to help determine if any actions need to be taken.

(1) NMRG-VAL or NMRG-FTHBCR Transcripts generate when either or both of the following conditions are present:

• Both the" from" and "to" accounts contain First Time Homebuyer Credit (FTHBC) amounts for the primary taxpayer

• Both the "from" and "to" accounts contain First Time Homebuyer Credit (FTHBC) amounts for the secondary taxpayer

(2) The FTHBC can be found on CC IMFOL with definer "F". Adjust the FTHBC as appropriate. See IRM 21.6.3.4.2.10.7, First-Time Homebuyer - Adjusting Accounts, and the NMRG - First Time Homebuyer Credit job aid, for additional information.

(3) Follow Erroneous Refund procedures to recover any erroneously refunded FTHBC credits. See IRM 21.4.5.5.2, Category A2 Erroneous Refunds. For more on the FTHBC credit, see IRM 21.6.3.4.2.10, First-Time Homebuyer Credit (FTHBC).

(1) NMRG-TDA transcripts are received initially by Compliance Services Collection Operations (CSCO). Per IRM 5.19.10.5.11.1, Processing NOMRG-TDA Transcript, CSCO reassigns to AM if there is a TC 150 posted on both numbers.

(2) NMRG-TDA transcripts received in AM are worked like NMRG-DUP. See IRM 21.6.2.4.4.1, NMRG-DUP.

(1) UPC 134-3 generates on CC ENMOD when a resequence fails because the "from" account contains a TC 898 within six years of the original offset date.

(2) If the "from" account is not the invalid segment of the "to" account,

1. If appropriate reverse the TC 898 following the instructions in IRM 21.4.6.5.19, Re-sequence Cases.

2. Input a CII case note indicating each TC 898 reversed and the tax year.

3. Follow NMRG-DUP instructions. See IRM 21.6.2.4.4.1, NMRG-DUP.

4. Input a CII case note indicating when the merge transaction is input.

(3) If the "from" account is the invalid segment of the "to" account and both accounts have a valid name control, take the following actions:

1. Verify that no other conditions are present on the invalid segment which would prevent a successful merge. See IRM 21.6.2.4.1.2, Resequencing Action Required.

2. Input TC 040 to move the valid segment of the TIN to an Internal Revenue Service Number (IRSN).

   Note: If the merge is successful the valid segment becomes available. Once the DM-1 tape runs the invalid segment, it systemically resequences to the valid segment.

   Caution: The TC 898 NMRG condition is bypassed only if the resequence is initiated systemically.

3. Once the "from" account has merged to the valid segment, merge the IRSN back to the valid TIN.

(1) A one-sided REVAL is a successful merge posted to the invalid side of the TIN. Only one taxpayer is involved.

(2) Input TC 041 with the taxpayer's correct first name line, using the year digit of the most recent module account. This forces the account to the proper segment. See IRM 3.13.5.128, Invalid Segment Bypass (TC 041).

(1) REVAL-DUP transcripts generate when:

1. The SSA Data tape changes the validity of a Name Control (NC) and causes an attempted merge of two accounts.

2. Each account contains a TC 150 for the same period(s).

(2) These transcripts generate automatically with the quarterly update of the SSA Data tape.

1. Transcripts contain data on both the "to" and "from" accounts.

2. REVAL-DUP transcripts may involve one or more taxpayers.

(3) Research the correct and incorrect accounts. If only one taxpayer is involved, take the following action on the incorrect account:

1. Resequence the account to an IRSN.

2. Zero out the IRSN account after the merge to the IRSN has been completed.

3. Input TC 170 .00 when zeroing the account if TC 807 or transfer of a timely credit is required. If a TC 170/TC 176 is present, input TC 171. Use BS 05, with HC 4.

4. Input TC 971 AC 001 on the IRSN to cross reference the valid TIN.

5. Input TC 020 to the IRSN after all actions are complete and posted.

(4) Take the following action on the correct account:

1. Input an entity change in the same cycle as the back out of the IRSN account, for the latest period name line to correct the name and address.

Note: A NMRG-DUP case is created if the name is changed on the correct account before the resequence posts. DO NOT input an entity change if the NC is accurate.

2. Analyze the returns to determine if adjustment action is necessary.

(5) If the taxpayer received a refund under both the correct and incorrect accounts, follow erroneous refund procedures in IRM 21.4.5, Erroneous Refunds.

(1) If a REVAL-DUP transcript generates with two taxpayers involved, follow instructions in IRM 21.6.2.4.4.1.2, NMRG-DUP Two Taxpayers Involved.

(1) A REVAL-VEST transcript generates when a resequence fails and both of the following conditions exist:

• A retention record is on one account and the same module is on the other account (either on retention or MF)

• The SSA Data tape changes the validity of name control causing it to post to the invalid side or on the ITIN.

(2) Research retention accounts for (valid and invalid for same TIN or on the ITIN and SSN).

(1) When the TC 370 posts and for the same module, only one account has a TC 150:

(1) When TC 370 posts and there is a TC 150 on both the correct and IRSN accounts for the same module, analyze them to determine if an adjustment action is necessary.

(2) Adjust the correct account if the adjustment action is necessary for any other module. This can be done only after the name change, if input, is posted.

(1) A REVAL-576 transcript generates when:

• A debit module or module with a TC 570 attempts to merge with a module containing a TC 576

• The TIN validity of NC changes

(2) Contact Examination for input of TC 577 to release the TC 576. Take the following action after the TC 577 posts:

(1) REVAL-400 transcripts generate when the file validity to which the account is returned is opposite to the correct account's validity.

(2) Follow instructions in IRM 21.6.2.4.4.4, NMRG-400.

(1) REVAL-424 transcripts generate when a resequence fails because:

• One or both accounts contain a tax module with an unreversed TC 424

• The TIN validity of the file to which the account is returned is opposite to the account's TIN validity

(2) After TC 424 is reversed, follow procedures in IRM 21.6.2.4.4, NMRG Procedures.

(1) REVAL-RPS transcripts generate when:

• The SSA Data tape changes the validity of the NC causing two accounts to attempt to merge

• Both accounts contain a combination of a TC 150 and multiple TC 610 (one is an RPS) for the same tax period

(1) REVAL SCRAMBLED SSN (REVALXXSSN) transcripts generate if the validity of the CN and SSN are opposite the validity of the segment to which it was returned after a failed merge on a scrambled SSN case. Reassign case as SCRM. Refer to the AM Site Specialization Temporary Holding Numbers listing for the appropriate number.

(2) A REVAL SCRAMBLED SSN (REVALXXSSN) transcript may also generate when a resequencing account fails to merge because the SSN on the "to" account is equal to the spouse’s SSN in any name line on the "from" account. See Mixed Entity procedures for help determining if any actions need to be taken. See IRM 21.6.2.4.2, Mixed Entity Procedures.

(1) Take the following actions when you have determined, per IRM 21.6.2.4.6, Tax Year Account Move Conditions Applicable for MXEN, SCRM, SSA2 and NMRG Cases, that it is not necessary to move posted tax account information. Unless specifically noted, the actions listed in this paragraph apply to MXEN, SCRM, SSA2, and NMRG cases. The bullet items listed here are related to the actions required on the "IRSN".

• Refer the case to your Lead or designated individual for approval not to move the tax account information. If approved, the Lead or designated individual must notate approval in the CII Case Notes. employee must input a case note of "not moved" or specific determination made, prior to requesting approval.

• Establish a name line on the "to" account for the tax year not being moved. Include the name(s), filing status, and spouse's SSN (if applicable) as shown on the return.

• Input a TC 971 AC 001 with the return received date on the "from" account to cross-reference the "to" account.

• After the name line has posted on the "to" account, input a TC 971 AC 017 on the "to" account to cross-reference the "from" account. Use the received date of the return not being moved.

• For MXEN, SCRM, and SSA2 cases, enter the following CII case note, filling in the applicable year: "Tax Year YYYY not filed by TP. See TC 971 AC 001 X-Ref".

Note: If reactivation requires obtaining microfilm, a note on CII is sufficient indicating the location of the cross-reference tax year.

(2) Take the following additional actions for the tax year(s) to remain posted on the account. These additional actions listed in this paragraph apply ONLY to MXEN, SCRM, SSA2 cases. The bullet items listed here are related to the actions required on the "SSN".

• For the "from" tax year(s) account(s), (the tax year(s) account(s) not being moved), change the name line on the tax year(s) to: "NOT FILED] NAMC". "NAMC" here represents the name control of the taxpayer who owns the SSN. You must type in the name control of the SSN owner instead of typing in "NAMC". Also update the address to the most current address, if applicable.

• If the return that posted to the Common Number, on the "from" account tax year has Self-Employment (SE) income, input CRN 878/CRN 895 and/or CRN 879/CRN 896 to zero out primary SE and Medicare income. See IRM 21.6.4.4.14.2, Self-Employment Tax Adjustments.

• If the return that posted to the CN, on the from account tax year has unreported tip income, input CRN 892/CRN 899 to zero out the primary and secondary tip income. See IRM 21.6.4.4.14.5.1, Adjusting Form 4137, Social Security and Medicare Tax on Unreported Tip Income.

• If an overpayment on the tax year account not being moved is over one-year old, move the overpayment to excess collections.

  Note: If the taxpayer has a valid TIN and issuing a refund, move the tax year account to the taxpayer's valid TIN.

• Any overpayment that has been offset to a Bureau of the Fiscal Service (BFS) debt and must be reversed, use HC 4. If the overpayment is over one year old, move it to excess collections. A letter must be sent to the taxpayer who has the BFS debt, notifying them of the reversal. If the BFS offset is over 6 years old, a manual reversal is required. Refer to IRM 21.4.6.5.17, Mixed Entity Cases with TOP Offsets, and IRM 21.4.6.5.18, Scrambled SSN Cases with TOP Offsets.

• Reverse any of the IRS offsets. If the overpayment is over one-year old, move the overpayment to excess collections. Send a letter to the SSN owner informing them of the overpayment reversal.

• If adjusting 2008 and FTHBC was claimed by the invalid taxpayer, see IRM 21.6.4.4.17.4, Manually Adjusting the Recapture Amount, to update the CC IMFOLF information.

(1) If there are 180 or more days remaining before the ASED expires, reprocess the return. See IRM 21.5.1.5.5, Processing/Reprocessing CII Tax Returns, and IRM 21.5.2.4.23, Reprocessing Returns/Documents. If reprocessing a return back to it’s original TIN, edit with SPC "B".

(2) If there are less than 180 days remaining before the ASED expires, refer the return to Statute for a prompt assessment.

(3) If the ASED is expired for the tax year(s) at issue, and move conditions are met, take action to move the tax account information as appropriate. If applicable, initiate a manual account transfer using Form 12810, Account Transfer Request Checklist. See IRM 21.5.2.4.23.9, Moving Assessments.

(4) For general information when the tax year account requires transfer via Form 12810 per the guidelines above, see IRM 25.6.1.9.9.3, Correct Records on Expired Statute Periods. Also see (7) below to expedite the processing and/or prevent delays of Form 12810.

(5) When the tax year account requires transfer via Form 12810, the tax year account must be in debit or zero balance. Accounting rejects any requests where the tax year account is showing or will show, once Form 12810 transfer has been completed, a credit balance. Resolve credit balances, whether as a refund to the correct taxpayer, if allowable, or as a transfer to Excess Collections. Make sure the entity information for the IRSN account has posted and all freeze conditions are resolved prior to sending Form 12810 to Accounting.

(6) If all other statute expiration dates have expired and there is no indication of activity or pending activity on the tax year account, do not move an incorrectly posted tax year if the Collection Statute Expiration Date (CSED) is expired or has less than 10 months remaining before it expires. No additional account moving action is required on these tax years.

(7) See the following IRM sections for proper processing of Form 12810:

• Form 12810 requires processing within a six-day timeframe per IRM 3.17.21.6 (3), Master File Account Transfers-Out.

Reminder: Ensure you submit Form 12810 to the appropriate accounting function via EEFax or e-mail.

• Any forms that are rejected by SP are sent back to the originator using an electronic format, by e-mail or EEFax. This prevents unnecessary delays, per IRM 3.17.21.6.1 (1), Processing Account Transfers to the Master File (IMF/BMF.

• The employee assigned to complete the transfer needs to open a control base, using category IRRQ, when it is determined that the transfer request is required, per IRM 3.17.21.6.1 (8), Processing Account Transfers to the Master File (IMF/BMF).

(1) Economic Impact Payments (EIP) may be identified by:

• An account transaction on the 2020/2021 module as a TC 290, containing Credit Reference Number(s) (CRN) 338 or 257, and Reason Codes(s) (RC) attributable to the EIP, see IRM 21.6.3.4.2.13.1, Economic Impact Payments (EIP) - Account Information; and,

• An entity transaction on CC IMFOLE as TC 971 AC 199 MISC field which identifies the source used to determine the eligibility and amount of the EIP, or why EIP was not allowed. See IRM 21.6.3-2, TC 971 AC 199 MISC Field Descriptions for Economic Impact Payments (EIPs), for more information.

  Note: A TC 971 AC 195 may be present instead of a TC 971 AC 199, or both may be present

(2) Taxpayer A is the valid taxpayer who correctly used the taxpayer identification number (TIN) and is to remain on the valid common number (CN). Taxpayer B is the invalid taxpayer who incorrectly used the TIN and must be reprocessed to their valid TIN, if located, or to an invalid internal revenue service number (IRSN).

(3) If EIP was not issued, continue to the case specific IRM and follow normal procedures.

(4) If EIP was issued, use the table below to determine who received the EIP when the case involves a TIN-related problem.

(5) The filing status from the return used to compute EIP plays an important role in your research and how adjustments are input. Married Filing Joint (MFJ) accounts reflect the transactions on both the primary and secondary tax year 2020/2021 and entity modules. The adjustment on the primary module includes the significant amounts, and the adjustment on the secondary module posts with .00 amounts.
For Joint tax returns, you must:

1. Determine where the EIP is located (primary or secondary TIN).

2. Determine if the original entity transaction(s) was applied to only one spouse or was split between spouses.

3. Determine if one or both spouses’ entity transaction requires an update.

(1) The CRN(s) used to adjust EIP are determined by the facts and circumstances of the case.

(2) Manual adjustments to EIP when resolving TIN-related problems allows for a "balancing" of the accounts. This includes "moving" the EIP refund from one account/module to another using a credit transfer, and an adjustment for the EIP as part of the account resolution on TIN-related problems.

(3) When inputting manual adjustments for any EIP, use reason codes 214 - 219 shown in IRM 21.6.3.4.2.13.1 (3), Economic Impact Payments - Account Information, as appropriate. When inputting an adjustment using CRN 338 and/or CRN 257, the first two positions must be 000. The same reason codes and CRNs are used for both the negative and positive adjustments.

(4) Generally, adjustments apply to both spouses, and if so, use the CRNs and reason codes (RCs) shown in IRM 21.6.3.4.2.13.1 (3), Economic Impact Payments – Account Information. When these reason codes are used, the system updates the entity transactions (TC 971 AC 199) for both spouses by splitting the adjustment and applying half to each spouse.

(5) Prior to adjusting joint returns, review the TC 971 AC 199/195 amount shown on each TIN. For tax year 2020/2021 the TC 971 AC 199 is systemically generated only when decreasing EIP. If multiple EIP adjustments on the same TIN are needed, input each adjustment separately using posting delay and hold codes to accurately reflect the amount each spouse received.

(6) Reverse the entire EIP adjustment using the same CRNs shown on CC IMFOLA, and RC 214-219 in the third position as appropriate.

(7) Manual adjustments create a systemic TC 971 AC 199 in the entity. The values for the "MISC" field are:

• REBADJ - EIP allowed or increased (tax tear 2021 only)

• REVREB - EIP reversed or reduced (tax year 2020 and 2021)

(8) When decreasing EIP, the TC 971 AC 199 entity transaction is systemically generated. When making a positive adjustment to EIP with HC 4, manual input of TC 971 AC 195 entity transaction is required.

(9) For mixed entity (MXEN) cases, follow IRM 21.6.2.4.7.2.1, Mixed Entity EIP Adjustments

(10) For no merge (NMRG) cases, follow IRM 21.6.2.4.7.2.2, No Merge EIP Adjustments.

(11) For scrambled SSN (SCRM/SSA2) cases, follow IRM 21.6.2.4.7.2.3, Scrambled SSN/SSA2 EIP Adjustments.

(1) AdvCTC payments may be identified by:

• An account transaction on the TY 2021 module as a TC 290 .00 with Transaction Code (TC) 766 with Credit Reference Number (CRN) 272, Reason Codes (RC) attributable to the AdvCTC; and,

• An entity transaction on CC IMFOLE as a TC 971 AC 199 or 195 which identifies the amount of each AdvCTC payment (including zero amounts), the month and tax year of the payment, number of qualifying children (QC), and AdvCTC source (tax year of return).

(2) The account transaction for each AdvCTC payment’s DLN contains a unique sequence number to identify the month for which the payment was issued. Reason Codes (RC) and positions identify the following:

• RC position 1 - the number of qualifying children

• RC position 2 - the month of the advance payment (007 = July, 008 = August, etc)

• RC position 3 - see table below

RC	Meaning
200	No AdvCTC due to MAGI phase-out
202	Invalid primary or secondary SSN (includes invalid due to assignment date and SSN not valid for work)
205	Catch-all (all CTC children deceased, advance payment under $1, etc.)
206	AdvCTC reduced due to MAGI phase-out
207 (4th position)	Taxpayer is deceased
209	AdvCTC not reduced by MAGI

1. 31 = July

2. 32 = August

3. 33 = September

4. 34 = October

5. 35 = November

6. 36 = December

(3) The entity of the taxpayer, and spouse if applicable, contains a TC 971 AC 199 (systemic) or TC 971 AC 195 (manual). The miscellaneous field is displayed in a specific format on CC IMFOLE dependent upon whether a systemic or a manual account adjustment was input. Refer to the table below to assist in identifying the field descriptions.

(4) An AdvCTC TC 971 AC XXX (other than 199) was placed as an entity transaction on CC IMFOLE of taxpayers to indicate specific account conditions. Refer to the table below for a list of the action codes and their descriptions:

(5) Taxpayer A is the valid taxpayer who correctly used the taxpayer identification number (TIN) and is to remain on the valid common number (CN). Taxpayer B is the invalid taxpayer who incorrectly used the TIN and must be reprocessed to the valid TIN, if located; or to an invalid internal revenue service number (IRSN).

(6) If AdvCTC was not issued for any month, continue to the case specific IRM and follow normal procedures.

(7) If AdvCTC was issued for any month, use the table below to determine who received each payment when the case involves a TIN-related problem as each is considered and addressed separately.

(8) The filing status from the return used to compute each AdvCTC plays an important role in your research and how adjustments are input. Married Filing Joint (MFJ) accounts reflect the transactions on both the primary and secondary TY 2021 and entity modules. The adjustment on the primary module includes the significant amounts, and the adjustment on the secondary module posts with .00 amounts.
For Joint tax returns, you must:

1. Determine where the AdvCTC payment(s) are located (primary or secondary TIN).

2. Determine if the original entity transaction(s) was applied to only one spouse or was split between spouses.

3. Determine if one or both spouses’ entity transaction requires an update.

(1) Manual adjustments to AdvCTC when resolving TIN-related problems allows for a "balancing" of the accounts. This includes "moving" the AdvCTC refund from one account/module to another using a credit transfer, account adjustments and entity transactions for AdvCTC as part of the account resolution on TIN-related problems.

(2) AdvCTC are adjusted on the TY 2021 module using Credit Reference Number (CRN) 272 with unique Reason Codes (RCs). The same three RCs are used for both the negative and positive AdvCTC account adjustments. Refer to the table below for the required adjustment RCs.

(3) There are two (2) data fields required when making any manual adjustments for AdvCTC payments using CC ADJ54. Refer to the table below for both required fields.

(4) When decreasing the AdvCTC, the TC 971 AC 199 entity transaction "NNNNNNN kktyxxREVCTC" is systemically generated. When making a positive adjustment to AdvCTC with HC 4, manual input of TC 971 AC 195 entity transaction "NNNNNNNkktyxxCTCAD" is required. See IRM 21.6.2.4.8.1 (3), AdvCTC - Account Information and Research.

(5) For Mixed Entity (MXEN) cases, follow IRM 21.6.2.4.8.2.1, Mixed Entity - AdvCTC Adjustments.

(6) For No Merge (NMRG) cases, follow IRM 21.6.2.4.8.2.2, No Merge - AdvCTC Adjustments.

(7) For Scrambled SSN (SCRM/SSA2), follow IRM 21.6.2.4.8.2.3, Scrambled SSN/SSA2 - AdvCTC Adjustments.