21.5.11. Employee Plan Accounts

(1) AM employees respond to taxpayer correspondence and phone calls as well as process claims, certain applications and other internal adjustment requests.

(2) IRM 21.5.11 provides guidance to employees assigned to AM, BMF, EP Accounts and TEGE Customer Service Representatives (CSR) located in the OAMC. The following subjects are covered in this IRM:

• EP correspondence inquiries

• EP abatements/adjustments

• EP penalties

• Routing of EP related correspondence

• Transcript Processing

• Manual Refunds

(1) Refer to IRM 1.2.1.13, Servicewide Policies and Authorities, Policy Statements for Customer Account Service Activities, for information.

(1) The Director, Tax Exempt/Government Entities, Business Systems Planning (BSP) is the executive responsible for the EO, EP and TEB programs.

(2) Additional information is found in IRM 1.1.13.7.3, Accounts Management and IRM 21.1.1, Accounts Management and Compliance Services Overview.

(3) All Employee Plan (EP) account-related issues and correspondence are worked in the EP Accounts unit(s) or by Customer Service Representatives (CSR) located in the OAMC. CSR and Tax Examiners (TE) located in other call sites or campuses don’t have authorization to resolve EP account related issues.

(4) Follow these procedures to process Employee Plan Master File (EPMF) penalty assessments. The Campus doesn't process Form 5500, Annual Return/Report of Employee Benefit Plan and Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan.

1. The Department of Labor (DOL) contracts a vendor to process and operate the Employee Retirement Income Security Act (ERISA) Filing Acceptance System (EFAST2) Project.

2. Annually, more than one million pension and welfare plans file the Form 5500, Form 5500-SF and Form 5500-EZ, Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan, to satisfy annual reporting requirements under the ERISA and the Internal Revenue Code.

3. Beginning on January 1, 2021, the Form 5500-EZ was added to the EFAST2 system to enable electronic filing. Some 5500-EZ filers will continue to file paper returns.

   Note: Paper filed Form 5500-EZ returns to be processed, are edited in red ink.

(5) A person from an employee plan requesting a copy of their Form 5500 must send the request to the Department of Labor at the following address:
U.S. Department of Labor
Employee Benefits Security Administration
EBSA Public Disclosure Room
200 Constitution Avenue, NW, Room N-1515
Washington, DC 20210–1111

(6) Send public disclosure requests for Employee Plan Form 5500 and Form 5500-SF to the Department of Labor at the address above.

(7) Forward requests for copies of paper filed Form 5500-EZ in response to an IRS notice to OAMC EP Accounts Mail Stop 6270:

(8) If the taxpayer requests copies of a form and the request isn't based on the issuance of a notice, send a letter telling the taxpayer they must file Form 4506, Request for Copy of Tax Return, and pay any applicable fee.

(9) Form 5500, Form 5500-SF, and some Form 5500-EZ returns you receive as the result of IRS issuance of delinquency notices, Del-Assess notices, etc. that need to be processed as original (TC 150) or amended (TC 977) returns require electronic filing. Send the return back to the filer to file it electronically.

(10) Send Form 5500, or Form 5500-SF Secured Returns received to EP Entity at Mail Stop 6273 to send back to the originator.

(11) The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

(1) IRM 1.4.16, Accounts Management Guide for Managers, provides guidance for program management and review of programs assigned to Accounts Management.

(1) Goals, measures, and operating guidelines are listed in the annual Program Letter.

(2) Quality data and guidelines for measurement are referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.

(3) OAMC management monitors recurring problems in the processing area and initiates Quality Analysis (appraisals) when appropriate. Notify the TEGE BSP/SPP analyst who oversees the process of all quality analysis reviews, at Mail Stop 1110. The Quality Analysis should include examples and figures showing volumes and percentages.

(4) Report problems encountered meeting required time frames on the day of discovery to the SPP program analyst who oversees the EP Accounts Management process.

(5) Coordination with the SPP program analyst who oversees the EP Accounts Management process, POC for EP designated by EP Examination Office and the POC designated by W&I is required when there’s a problem(s) resolving a case with EP Examination involvement. Issues could include but aren't limited to:

• TEGE secured returns processed incorrectly by campus.

• TEGE secured returns posted incorrectly due to agent error.

• Penalties assessed incorrectly on TEGE secured returns.

• Payments incorrectly posted on TEGE secured returns.

(6) Use the following program codes to process EP filings and account actions:

(1) The ReferenceNet - Legal and Tax Research Service page provides an Acronym Database to research acronyms found within this IRM.

(1) In addition to IRM 21.5.11, EP tax examiners and CSRs will refer to resources available to them, including but not limited to:

• IRM 2.3, IDRS Terminal Responses

• IRM 2.4, IDRS Terminal Input

• IRM 3.13.36, EPMF Account Numbers, contains specific information for EPMF account numbers

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

• IRM 13.1, Taxpayer Advocate Case Procedures

• IRM 21, (e.g., IRM 21.1, Accounts Management and Compliance Services Operations; IRM 21.3, Taxpayer Contacts; IRM 21.5, Account Resolution) as needed for case resolution

• IRM 20.1, Penalty Handbook

• IRM 20.2, Interest

• IRM 25.6, Statute of Limitations

• IRM 25.23, Identity Protection and Victim Assistance (e.g., IRM 25.23.11, Business Master File (BMF) Identity Theft Procedures for Accounts Management; IRM 25.23.11.7.6, BMF Identity Theft Referrals (AM BMF Identity Theft Teams only); IRM 25.23.9.4, BMF Identity Theft Research (Inquiry received via paper or phones); IRM 25.23.9-7, BMF Identity Theft Research Requirement

• Document 6209, IRS Processing Codes and Information

• SERP, Servicewide Electronic Research Program, to view SERP Alerts, IPUs, Correspondex Letters and IRM Supplements among others

• Publishing + Distribution website to research forms, instructions and publications, other Internal Revenue Manuals, revenue procedures and IRS announcements

(1) Generally, congressional inquiries are worked by TAS. When a congressional inquiry is received via telephone or correspondence, follow the procedures in IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, to determine whether the congressional inquiry should be referred to TAS.

(1) See IRM 11.3, Disclosure of Official Information and IRM 21.3.3, Incoming and Outgoing Correspondence/Letters for issues regarding Disclosure, Third Party Request for Information, Freedom of Information Act request, Privacy Act, etc.

(1) Form 5500 - Annual Return/Report of Employee Benefit Plan.

(2) Form 5500 - EZ – Annual Return of a One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan.

(3) Form 5500 - SF - Short Form Annual Return/Report of Small Employee Benefit Plan.

(4) Form 5330 - Return of Excise Taxes Related to Employee Benefit Plans.

(5) Form 5558, Application for Extension of Time to File Certain Employee Plan Returns.

(6) Form 8955-SSA - Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits.

(7) Schedule A - (Form 5500) – Insurance Information. Instructions for the 2005 revision reflects EBSA guidance on reporting of insurance fees and commissions.

(8) Schedule C - (Form 5500) – Service Provider.

(9) Schedule D - (Form 5500) – DFE/Participating Plan Information.

(10) Schedule G - (Form 5500) – Financial Transaction Schedule.

(11) Schedule H - (Form 5500) – Financial Information.

(12) Schedule I - (Form 5500) – Financial Information (Small Plan).

(13) Schedule MB - (Form 5500) - Multi-employer DB Plan and Certain Money Purchase Plans Actuarial Information.

(14) Schedule R - (Form 5500) – Retirement Plan Information. Changes to form 2005 revision modified Line 9 to identify plan amendments and decrease, as well as increase the value of benefits. Part IV of Schedule R includes ESOPs questions previously included on Schedule E.

(15) Schedule SB - (Form 5500) - Single-employer DB Plan Actuarial Information.

(16) Quick Reference Chart for Form 5500, Schedules and Attachments, this chart provides only general guidance. Not all rules and requirements are reflected. Refer to specific Form 5500 instructions for complete information on filing requirements.

(17) Form 5500-EZ filers for 2005 and later no longer need to attach any schedules to the form.

(1) Taxpayers must file all Form 5500 series returns, except the Direct Filing Entity (DFE), on or before the last day of the seventh month following the close of the plan year unless we granted extensions. The figure below lists dates for Form 5500 Series Returns, except the DFE return:

(2) EPMF treats the extensions as follows:

(3) Extensions granted on Form 5500 series also apply to the Form 8955-SSA for the same tax year and plan.

(4) For penalty processing, the failure to file penalty accumulates from the due date (or extended due date) to the received date at $250 per day ($25 per day for returns filed on or before December 31, 2019).

(5) Extensions are granted by using "Extension of Time to File Federal Income Tax Return". Grant an automatic extension of time to file Form 5500 until the due date of the federal income tax return of the employer, if the filer meets all of the following conditions:

1. The plan year and the employer’s tax year are the same.

2. We granted the employer an extension of time to file its federal income tax return to a date later than the normal due date for filing the Form 5500.

   Note: An extension granted using this automatic extension procedure CAN'T be extended further by filing a Form 5558.

(6) Form 7004 grants an automatic extension of six months for the filing of certain business income tax, information, and other returns, and is sufficient for Form 5500 series and 8955-SSA returns.

(7) Form 4868 grants an automatic six month extension to file Form 1040 series returns.

(8) Form 5558 is for the sole purpose of requesting a one time, automatic two and one-half month extension. This one form extends the filing from the last day of the seventh month after the plan year ends until the 15th day of the third month after the normal due date. The Form 5558 generally doesn't require a signature, See IRM 3.11.20, Exempt Organization and Employee Plan Applications for Extension of Time to File.

(9) A tax-exempt organization is not required to file a federal income tax return. However, if the organization uses a Form 8868 to request an extension for its Form 990 series return, the filer is automatically granted an extension of time to file the Form 5500 until the extended due date of filing the Form 990 series, if all the following conditions are met:

1. The plan year and the organization’s tax year are the same;

2. The organization has been granted an extension of time to file its Form 990 to a date later than the normal due date for filing the Form 5500;

3. A copy of the application for extension of time to file an exempt organization return is maintained with the filer’s records. An extension granted by using this automatic extension procedure cannot be extended beyond a total of 9 1/2 months beyond the close of the plan year.

(10) All fiscal return filers also follow these rules and examples. First establish their normal due date for filing their federal income tax (or Form 990 series) return. By using any other extension form other than Form 5558, add the number of months approved to their normal due date. If this extended date is beyond the normal due date of Form 5500 series returns, it's valid, as long as it met the valid conditions for the federal income tax (or Form 990 series) return.

(11) Taxpayers must file Direct Filing Entity (DFE) other than Group Insurance Arrangement (GIA) by nine and one-half months after the end of the DFE year.

(1) Form 5500 series return posts with Transaction Codes 150 and 977 (amended return) or TC 154 for Form 5330 fact of filing.

(2) Form 5330 processes as a BMF return (MFT 76, Tax Class 4).

(3) The valid Document Codes (4th and 5th digits of DLN) are as follows:

(4) EPMF Delinquency Notice Transaction Codes (TC) are as follows:

• TC 142 - Records the issuing of a Taxpayer Delinquency Investigation (TDI). Advise taxpayer to submit the missing return.

• TC 155/156 - Received an incomplete return. The vendor issued a letter for the missing information.

(5) Denied and approved extensions for Forms 5500 and Form 8955-SSA post to EPMF as a TC 460.

(6) Denied and approved extension forms post to the BMF as a TC 460 for Forms 5330.

(1) Active plan modules have a plan filing requirement as follows:

1. T for Form 5500-SF filed in lieu of a Form 5500.

2. N is for one-participant plans filing either paper Form 5500-EZ or electronically using EFAST2 System.

3. X for Form 5500.

(2) When the latest return module doesn't contain an unreversed TC 150 or 977, but contains a TC 591, 593, 595, or 596, the plan filing requirement is blank.

(3) Other possible transactions and their results are:

1. Latest return module contains a TC 150 or 977, not coded with CCC "F" (final return) and one of the following transactions: TC 591, 593, 595, or 596, the plan data module has a plan filing requirement and an entity filing requirement.

2. Latest return module contains a TC 151, 591, 593, 595, or 596 and no TC 150 or 977, the plan filing requirements are blank and the entity filing requirements are zero (0).

3. Latest return module contains a TC 150 or 977, coded with CCC "F", assets distributed, and no participants are present, the plan filing requirements are blank and the entity filing requirements are zero (0).

4. Latest return module contains a TC 150 or 977, coded with CCC "F" and one of the following transactions: TC 591, 593, 595, or 596, the plan filing requirements are blank and the entity filing requirements are zero (0).

5. Latest return module contains a TC 150 or 977, not coded CCC "F", the plan data module has a plan filing requirement and an entity filing requirement.

6. Condition Code "F", the plan filing requirements are blank and the entity filing requirements are zero (0).

(4) If no TC 150 has posted, a filing requirement will be present if a filing requirement is input on a TC 000 (Doc Code 64) TC 121 or TC 123.

(5) Plan filing requirements update by posting a return or inputting TC 016 (Doc Code 64).

(6) When a TC 020 (Doc Code 64) posts to the plan, the plan filing requirements change to 8 if an unreversed TC 12X or a return module is present.

1. If there is no unreversed TC 12X or no return module present, the plan data module erases.

2. Only a TC 012 (Doc Code 64) posts to a plan with filing requirement 8.

(7) To post a TC 020 (doc Code 63) to delete the entity, all plan filing requirements must be blank or 8.

(8) Location Codes - These identify the Area Offices (AO) in which an entity is located, as determined by the mailing address. The computer assigns Location Codes to entity transactions containing a recognizable city and state.

(1) When the latest return module contains an unreversed TC 150 or 977 with Computer Condition Code (CCC) "F" (final return), the plan filing requirement is blank.

(2) CCC "F" generates on current year Forms 5500/5500-EZ if Return Process Code (RPC) "T" is present.

(3) The RPC "T" generates when:

1. Schedule H/I Line 5a is answered "YES", and

2. Total end-of-year assets is zero, and

3. Total participants end-of-year is zero.

   Note: RPC "T" generates on pure fringe benefit plans if Form 5500 Part I, Item B - the final return/report box is checked.

(1) The accounts on the "EPMF" are maintained in EIN and Plan Number sequence (NNNNNNNNN–NNN).

(1) A plan number is a three-digit number assigned by the plan sponsor to differentiate between plans established or maintained by the same plan sponsor, as the figure shows.

(2) Once assigned, the same number must be used consistently to identify the same plan.

(3) If a plan terminates, don't use its number for any new plan.

(4) The plan number along with the plan name identifies a plan from other plans for a given sponsor.

(5) The plan name, plan number, the type of return filed, and the plan month ending make up the plan entity. As long as the plan is in effect the numbers stay the same, although the name may change.

(6) If the plan number is 501–999 and a penalty generates on a true Fringe Benefit Plan, abate the penalty. If the Plan is a combination of fringe and welfare, the penalty is appropriate.

(1) EP Entity processes changes to the Name of Sponsor, Administrator or Plan, mergers of Sponsor or Plan, or changes to EIN. Adjustments can make address changes. Route the case to EP Entity via Form 12634, OIRSC Campus Document Transmittal, within 2 working days.

(2) Follow local procedures for making entity changes to non-master file.

(3) If you receive a copy of a return through contact with the filer, and you find that a return we originally processed posted to the incorrect EIN, Plan Number, or Tax Period, follow the instructions below.

1. Edit the return by lining through the incorrect information and annotating the correct information above in blue or black permanent pen. Do not use black marker. Next to the correction edit an IRS identification code as follows: *OG (asterisk OG) with a circle around it, and send the return to Receipt and Control for shipment to EBSA.

(4) Route replies to CP 403 and 406 to EP Entity at MS 6273.

(1) EFAST/EFAST2 uses some of the same Computer Condition Codes (CCC) used in the current IRS system. Some new codes were added and some codes have different meanings when present on an EFAST/EFAST2 return. Learn to recognize and use them, as required, in resolving delinquency notices.

(2) Computer Condition Codes (CCC) indicate exception conditions on a return. More than one CCC may be used on a return.

(3) A description of the valid CCC’s follows:

(1) This is the most common type where one employer adopts or establishes a plan for employees. The employer may adopt multiple plans, each of which is considered a single employer plan.

(2) The administrator must file one return annually for each plan adopted.

(1) This is a plan adopted by a parent corporation and each of its subsidiary corporations or one adopted by brother/sister corporations. The filing requirement is based on how the plan operates.

(2) Originally, the Form 5500 Series return instructions required a single return to be filed annually whenever the parent and subsidiary or brother/sister corporations adopted the same identical plan.

1. This is still the case if all contributions to the plan made by the parent and subsidiary or brother/sister corporations are available to pay benefits to all participants of all the participating corporations. In other words, there is one pot of money and all employee participants are paid from this pot regardless which of the corporations made the contributions to the plan.

(3) If the participating corporations designate contributions to the plan earmarked for the corporations, then each corporation operates as if it has a single employer plan. Each participating corporation must file a separate return.

(1) This is a plan in which more than one employer participates, it's collectively bargained (union agreement), and no employer contributes 50% or more of the annual contributions. This is commonly known as a union plan set up and union administered. Each employer contributes a certain amount per employee (in a particular trade or business) to the union plan. One return is required to be filed for this plan. The "Board of Trustees" or similar group administering the union plan generally files the return.

(1) Multiple employer Plan (MEP) is a plan maintained by two or more employers who aren’t related under controlled groups, or trades or business under common control, or affiliated service groups. All of the employers maintaining a MEP (participating employers) are treated as a single employer for purposes of ERISA and certain code requirements. One return is required to be filed for MEP.

(1) Group Insurance Arrangement (GIA) – This is an arrangement in which the plan provides benefits to the employees of two or more unrelated employers. The plan is fully insured and uses a trust to hold the assets. The administrator of the arrangement files only one annual return/report. If the administrator doesn’t file a consolidated report, then each participating employer must file.

(2) Master Trust Investment Account (MTIA) – The administrator filing a Form 5500, for an employee benefit plan required to file or have a designee file a Form 5500 for each MTIA in which the plan participated at any time during the plan year. For reporting purposes, a "master trust" is a trust for which a regulated financial institution serves as trustee or custodian (regardless of whether such institution exercises discretionary authority or control with respect to the management of assets held in the trust), and holds assets of more than one plan sponsored by a single employer or by a group of employers under common control.

(3) Common/Collective Trust (CCT) and Pooled Separate Account (PSA) – The Form 5500 isn't required for a CCT or PSA. However, the administrator of a large plan or DFE that participated in a CCT or PSA that files is entitled to reporting relief not available to plans or DFEs participating in a CCT or PSA for which a Form 5500 isn't filed.

(4) 103–12 Investment Entity (103-12 IE) – This is DOL Regulation 2520.103–12 that provides an alternative method of reporting for plans that invest in an entity (other than a MTIA, CCT, or PSA), whose underlying assets include "plan assets" within the meaning of 29 CFR 2510.3–101 of two or more plans that aren't members of a "related group" of employee benefit plans.

(1) Determine which penalty or combination of penalties is appropriate by reviewing the account as follows:

(1) Form 5500, Form 5500-SF and Form 5500-EZ are subject to late filing penalties. The penalty for late filing is $250 per day ($25 per day {$50,000 maximum} for returns required to be filed on or before December 31, 2019); the penalty continues until it reaches a maximum of $150,000 (600 days). For more information go to, IRM 20.1.8.4.3, IRC 6652(e) - Information Required in Connection with Certain Plans of Deferred Compensation, Etc.

(2) Review CC EMFOLT for an attached extension. If found and we received the return by an extended due date, close your case with the appropriate account action.

(3) The denied and approved extensions requests post to EPMF as a TC 460. A CP 216X notice generates to the filer.

(4) If the filer comes back in asking for reconsideration for his/her extension, and we approve his/her request, do the following actions:

• Input a TC 460 with the approved extension date

• Send Letter 333C.

  Note: Form 5558, listing EINs and/or plans is no longer accepted. If a filer submits a Form 5558 with a list of EINs and/or plans attached, and the extension wasn't previously accepted, don't input the TC 460. Notify the filer each plan must submit separate Forms 5558 for additional EINs and plans.

(5) Research BMFOL and IMFOL for a valid extension (TC 460) for either of these two situations to close your case with the appropriate account action. The TC 460 must have:

1. The same tax period as your return.

2. An extended date, or a number of months extended (1-6), that extends the EP return beyond the normal due date.

   Note: C corporations with tax years ending June 30 are eligible for an automatic 7-month extension of time to file (6-month extension if filing Form 1120-POL).

(1) Review the return and if the results of the initial review resolve the incomplete items, close the account using the appropriate action.

(2) If one or more items from the chart above is still missing, the incomplete penalty is systemically assessed.

(3) If we receive a signed penalty abatement request for an unsigned Form 5500 or 5500-EZ, accept the signature on the penalty request and consider the return complete.

(4) If missing SCH-MB/SB is received in correspondence or in EFAST/EFAST2, accept and consider the return complete.

(1) EP penalties involve plans subject to ERISA that defer to receipt of compensation. Refer to, IRM 20.1.8.4, Employee Plans (EP) for information about frequently encountered penalties.

(2) When considering a penalty imposed under IRC 6692, it may be necessary to determine if the actuary was active when a return was filed.

(3) Actuary numbers are validated every three years and must be current when a Schedule MB/SB is filed. The valid Actuary Enrollment numbers are 17, 20 and 23. The latest cycle began April 1, 2023.

(4) The table below indicates the starting digits for Actuary Enrollment Numbers:

(1) The Schedule SSA is no longer a part of the Form 5500 filing. The Form 8955-SSA is a separate return.

(2) Form 8955-SSA is subject to late and incomplete penalties.

(3) If an approved extension posts for a Form 5500, consider the Form 8955-SSA to have an approved extension also.

(4) Late or incomplete penalties assess systemically and issue a Late Filing Penalty Notice, CP 283C.

(5) To assess the Form 8955-SSA late or incomplete penalty, use the number of participants on the copy of Form 8955-SSA (these are usually filers with no name and/or SSN). Compute the number of days from the due date (or extended due date) to the assessment date. If it was a "No Reply," use the adjustment’s "No Reply" date.

(6) If an assessment was made for a missing Form 8955-SSA, a partial abatement may be needed. The missing SSA number of participants may have been the entire number shown on the return. (See IRM 21.5.11.9, Abatements/Adjustments on Form 5500 BMF/8955-SSA Accounts/Direct Filing Entity (DFE)).

(7) If an assessment was made for missing SSN/Name, compare the new copy with the one used for the previous assessment. Assess or abate any differences accordingly.

(1) DOL may assess ERISA penalties on all returns.

(2) If it is also an IRS penalty, consider a request for abatement on the IRS assessment only. EMFOL shows CCC "I", "B", and "N" for IRS penalties. CCC "P" is for any DOL penalties.

• Advise the filer that we eliminated the IRS assessed penalty, if appropriate. Also inform the filer that we are forwarding the DOL assessment to the DOL for their consideration.

• Use the following address on Letter 86C.

EBSA
Office of Enforcement
200 Constitution Avenue N.W.
Washington, D.C. 20210

(1) Follow this section when processing adjustments to the MFT 74 account on BMF.

(2) If you need to make an adjustment on an account, see references throughout this section to different IRMs to help you complete your action.

(3) Adjustment guidelines are a set of IRS-wide rules to follow when working the adjustments. Refer to IRM 21.5.2, Adjustment Guidelines, for additional clarification and procedures.

(4) For Reasonable Cause Criteria see IRM 20.1, Penalty Handbook.

(5) Notices are suppressed various ways depending on the type of notice and the issue. Notices are suppressed with:

• Hold Codes

• Notice Suppression Codes/Indicators

(6) Use command code REQ54 to adjust tax, penalty and interest. When a REQ54 adjustment action completes and ADJ54 releases, assemble a source document record. Send the folder for association with the computer-generated printout for filing. A source document is back-up material supporting the adjustment and kept for future reference. If interest is not restricted, interest will systemically adjust when tax and/or penalties are adjusted. No manual interest computation is required.

(1) EP Accounts researches and provides the valid plan number for association with the payment or refund check. EP Accounts provides the valid plan number as history on UPTIN or to the lead of the Unpostable Unit.

(1) Send all official Form 5330/5500 denied appeal cases to EP Accounts to reconsider.

(2) If the penalty can't be abated upon reconsideration, the SME within the unit prepares the package and sends it to the Independent Office of Appeals.

(1) This section contains information and procedures for the CP 186.

1. A potential manual penalty or interest adjustment occurs when a payment transaction posts to a module and the credit amount is greater than the assessed module balance due amount.

2. When there is an interest or penalty computation restriction present.

3. When an account transfers in from the Retention Register with Doc Code 51 or 52.

4. An additional "CP 186" Notice generates when subsequent credits post and the same situation as above is present. The EP Accounts Unit works all CP 186s that are for Form 5330, (MFT 76).

(2) Some conditions that prevent IRS computer systems from automatically calculating interest are:

1. Interest previously was manually assessed (TC 340) or abated (TC 341).

2. FTP penalty previously was manually assessed (TC 270) or abated (TC 271).

3. Returns with prior year, ending before January 1, 1970.

4. Audit or DP tax adjustment (TC 29X or 30X) posted with a 23C date before January 1, 1970.

5. Any transferred in transaction (Doc. Code 51 or 52 posted).

6. See IRM 20.2.5.6.1, Reasons to Manually Compute Interest, for additional reasons an account may need to be restricted.

(3) Analyze the module and take the required action as follows:

1. If an unresolved TC 480 or TC 780 is present on the module, forward to the Offer-in-Compromise File for resolution or route to the Technical Support function.

2. If an unreversed TC 520 is on the account, refile any returns associated with notices and destroy the CP 186. When the bankruptcy closes, Technical Support function disposes of any credit.

(4) Request the source document, if needed, to determine the reason for the restriction.

(5) Review the penalty on the original assessment to verify if correct assessments were made.

1. If the original assessment was incorrect, use the correct figures when resolving the CP 186.

2. If a previous FTP penalty was abated for reasonable cause (RC 062), don't reassess the amount associated with RC 062.

3. If the maximum FTP was reached and a TC 971 action code 262 hasn't generated, input TC 971 action code 262.

   Note: See IRM 21.7.11, Additional Computer Paragraph Notices and Transcripts, for additional information addressing Manual Interest/Penalty Adjustment.

(6) Review the interest assessed.

1. See IRM 20.2.5.2.3, Steps to Compute Interest, for procedures on how to compute interest.

2. Verify previous restricted interest transactions before recomputing a module. If you are unable to verify the TC 34X/77X amount, secure the adjustment document or case file.

   Note: See IRM 20.2.5.2.3, Steps to Compute Interest, for further information.

(7) Input a non-restrictive TC 340 whenever possible. Refer to IRM 20.2.5.6.3, Non-Restricting Transaction Code (TC) 340, for details.

(8) If additional penalty and/or interest is due, input an adjustment to assess the additional amount. Follow the figure below:

(1) CP 190 generates within four cycles after a "G" coded TC 976 Form 5330 return posts to a module which doesn't contain an original return (TC 150).

(2) CP 190 is associated with TC 976 return and forwarded to EP Accounts for resolution.

(3) E- freeze generates along with CP 190. Release the E- freeze before closing CP 190 cases by either posting:

• TC 971 action code 002

• TC 150

(4) EP Accounts determines disposition of TC 976 Form 5330.

• Check IDRS for an unpostable or rejected TC 150.

• Analyze return and any attached schedules for possible re-input to another tax period or TIN.

• If TC 150 posts to account after the CP 190 generated, close the base for the CP 190 to the DUPF control after it was assigned to an employee. Resolve duplicate filing condition.

• If further information is needed, call or send the filer a copy of the return using the appropriate C letter. Suspend case for 40 days if corresponding.

(1) This section contains information and procedures related to duplicate filing conditions.

(2) A duplicate filing condition occurs when a return (TC 976) posts to a module already containing a return. Master File generates a -A Freeze and a CP 193. The CP 193 is associated with the return and forwarded to Adjustments.

(3) When a return is filed with the amended box checked, or marked "amended", "corrected", "supplemental", "superseding", etc., Code and Edit inputs CCC "G". Only EIN, name control, plan number, tax period, received date, condition codes, sponsor EIN, sponsor plan year ending and CAF indicator get transcribed.

(4) All duplicate filing cases are controlled on IDRS and stay open until action is taken to resolve the case.

(1) When reprocessing a return, use Form 13596.

(2) When reprocessing a dummy return in lieu of original or duplicate return, use the same received date as the original or duplicate, respectively.

(3) Input TC 971 with the appropriate action code to the incorrect module (to identify cross reference TIN/Plan number/Tax period data) whenever an original or amended/duplicate return posted to an incorrect TIN/Plan number/Tax period and reprocessing to correct the module. See IRM 21.5.1.4.8, Transaction Code 971, for valid TC 971 action codes.

(4) Input TC 290.00 to release the freeze.

(1) If a TC 976 return posted to an incorrect module, use IDRS and CFOL command codes to determine the account to which to reprocess it.

(2) If a TC 150 exists on the correct module:

1. Input TC 971 with action code 017 using CC REQ77 and make any required adjustment to the correct TIN/Plan number/Tax Period. Use appropriate blocking series, hold codes, etc.

2. Transfer any credits that don't belong and input TC 971 with action code 002 using CC REQ77 on the incorrect module. Input TC 290.00 (use appropriate hold code) to release the freeze.

(3) If no TC 150 exists on the correct module:

1. Prepare Form 13596 to reprocess the TC 976 to the correct module.

2. Input TC 599 with closing code 018 using CC FRM49 and a TC 971 with action code 017 using CC REQ77 on the correct module.

3. Transfer any credits which don't belong and input TC 971 with action code 002 using CC REQ77 on the incorrect module. Input TC 290.00 (use appropriate hold code) to release the freeze.

(1) When you determine the TC 150 return posted to an incorrect module, use IDRS and CFOL command codes to determine the module to which it should be processed.

(2) If a TC 150 exists on the correct module:

1. Input TC 971 with action code 017 using CC REQ77 and make any required adjustment to the correct TIN/Plan number/Tax Period. Use appropriate blocking series, hold codes, etc.

2. Transfer any credits which don't belong and input TC 971 with action code 001 using CC REQ77 on the incorrect module. Input TC 29X to make any required adjustments and to release the freeze.

(3) If no TC 150 exists on the correct module:

1. Prepare Form 13596 to reprocess the TC 976 to the correct module.

2. Input TC 599 with closing code 018 using CC FRM49 and a TC 971 with action code 017 using CC REQ77 on the correct module.

3. Transfer any credits which don't belong and input TC 971 with action code 001 using CC REQ77 on the incorrect module. Input TC 29X to make any required adjustments and to release the freeze. Use the appropriate blocking series, hold codes, etc.

(1) Return documents (in separate folders labeled by type) to Campus Files within seven workdays of input.

(2) Mail/route source documents immediately after Quality Review is complete. If you keep the source document beyond three (3) workdays for completion of certain ADJ54 transaction cases, input "R" in the remarks field of the input screen. Notify the Files Management Unit immediately of any anticipated shipment delays.

(3) Route all adjustment documents to Files marked Attn.: Files Management Unit. Complete Form 4442, Inquiry Referral or Form 8485, Assessment Adjustment Case Record. Include the IDRS sequence number in the top right corner before placing the documents in the employee folder.

(4) Prepare separate adjustment folders for each date and type of input. Label the outside of each folder as follows:

1. IDRS number

2. Date

3. Category of source documents

4. Sequence numbers (e.g., 01–14QR), and

5. Release date (e.g., September 30, 2014)

   Reminder: Local procedures may impose additional or alternate requirements.

(5) Prepare a separate folder for ADJ54 case actions. Date and sequentially number (legibly and readily available for Files to recognize) the Form 8485 or other worksheets used to notate the case and account actions taken. This helps Files maintain the integrity of the cases. Place other transactions, e.g., credit transfers, in a separate "Other Documents" folder and ship to Files daily.

(6) Remember to insert your source documents into your folder as soon as you complete the IDRS account adjustment. If you forget to insert a document into the folder, don't throw it away. Obtain the DLN and send to Files for association with your case file. If you don’t include the source document, the Files Management Unit may contact you and request it.

(7) See IRM 21.5.2, Adjustment Guidelines, for additional information.

(1) The "– E Freeze" (released after 10 cycles) indicates an FTD discrepancy in the BMF debit module which generates a balance-due notice. The " – E Freeze" module can contain debit balance modules resulting from posting of transactions subsequent to original return processing.

(2) Subsequent transactions can be any combination or separate posting of tax, penalty, interest, or credit reversals which result in the module going from zero or credit balance to a debit balance or from a debit balance to a greater debit balance.

1. The module balance before posting of the subsequent transaction can be zero, debit, or credit.

2. The module balance after posting of the subsequent transaction must be a debit.

3. The account can't have a module currently in TDA Status 22, 23, 24 or 26 or have had a module close from TDA Status in the previous 12 months.

(3) The "– E Freeze," under the subsequent transaction criteria, releases if:

1. The 10 cycle freeze expires. (If all other criteria are met, the 10 cycle freeze resets based on the most current subsequent transaction posting.)

2. The module reaches zero or credit status.

3. The account/module reaches TDA status.

(4) The system issues the appropriate notice based on posting of the subsequent transaction(s) if a notice otherwise would have been issued.

(5) Research "MF/NMF" for credits. Transfer credits appropriately (ADD24 on NMF and ADD34 on MF ).

(1) Merge fail transcripts (NOMRG) are computer generated when plan data account consolidation fails.

(2) Each campus determines the area(s) where to resolve EP NOMRG.

(3) These transcripts generate when an invalid condition exists in the account of the old and/or new plan data module. Each transcript has a title and a code to indicate the invalid condition. These titles and codes are similar to those on the Entity Merge Fail transcripts.

(4) Before resolving the merge fail condition:

• Always check for transcription errors. Request complete transcripts which involve the plan data module.

• Follow the procedures in IRM 3.13.36, EPMF Account Numbers, because these transcripts involve the plan data module.

(1) Research CCs BMFOL, TXMOD, SUMRY, ENMOD, EMFOL, and RTR to ensure payment is applied is applied to the correct account.

1. Research CC BMFOL for possible misapplied payment on a different plan or tax period.

2. Research CC SUMRY for open controls on other EP accounts with instructions from taxpayer.

3. Research CC ENMOD for a new address.

4. Rsearch CC EMFOL for existing plan numbers.

(2) If a payment was made for an amended tax return, identified by TC 670 or TC 610, send a letter requesting the amended tax form while ordering any TC 150, TC 976, or TC 973. If no reply and requested document is not received from files within 120 days, close the case no action.

(3) If the TC 570 freeze was applied as a result of an adjustment, review the reason for the adjustment and determine if it was completed correctly. If necessary, completed the adjustment and release the freeze.

(4) If the case is still unresolved, analyze credits as follows:

• If applicable, contact the taxpayer and correct as taxpayer intended.

• If the payment is a TC 670, no reply is received after 120 days, transfer the credit to Unidentified Remittance File (URF) or Excess Collections file (XSF) and close case, "NOREPLY". IRM 21.5.11.19 . Excess Collections file (XSF) and Unidentified Remittance File (URF) for AMRH.

(1) Refer to IRM 21.2.4, Master File Accounts Maintenance, for complete resolution of AM12 transcripts.

(2) To resolve transcripts where the TC 610 posted but the related tax return didn't post, perform complete research.

(3) Send a 112C letter to the filer requesting a signed copy of a return, if needed.

(4) If you don’t receive a response after 45 days and you’ve done complete research, take the following actions:

• If the taxpayer's account contains a TC 610 payment along with a TC 460 (extension of time to file before or after the TC 610 payment ) posting date, change the TC 610 payment to a TC 670 payment using the same transaction date as shown on the original TC 610 payment. Close your control base. No further action is required on this account.

• If you determine from researching Command Code (CC) TRDBV, the original ELF filed return or paper return was rejected, request a newly signed copy of the return from the taxpayer. If you receive a newly signed copy of the return, treat as an original return by editing the return and forwarding the return to Submission Processing. In addition, change the TC 610 payment to a TC 670 payment using the date of the TC 610 payment. If you can’t secure a return, change the TC 610 payment to a TC 670 payment and close your case.

• AM12 follow-up transcripts are suppressed. Notice CP 80, We have Not Received Your Tax Return, goes out to the filer.

(5) If you determine from your research the taxpayer has a Form 1065 filing requirement but files a Form 1120, U.S. Corporation Income Tax Return, the Form 1120 filing is not considered to be a valid tax return for the taxpayer (Assessment Statute Expiration Date (ASED) does not start). The filing of the Form 1120 does not provide enough information for us to make an assessment for the Form 1065. On this type of tax return filing, take the following actions:

• Change the TC 610 payment to a TC 670 payment with the same date as the original TC 610 payment.

• Send a letter to the taxpayer requesting they file the correct tax return (Form 1065) and close your control base.

(1) The transcripts replace the Credit/Debit Listing that is accessible on Control - D. They are formatted the same as existing AMRH transcripts and are referred to as:

• AM 31 - Form 5330, or 5500 credit balance

• AM 32 - Form 5330, or 5500 debit balance

(2) Work credit transcripts within 30 days to prevent erroneous notices.

(3) If the transcript is a "Follow-up" or a "Multiple", the letter "F" or "M" prints to the right of the AMRH 31 or 32. See below:

• TRANSCRIPT TYPE AMRH 31 F

• TRANSCRIPT TYPE AMRH 32 F

• TRANSCRIPT TYPE AMRH 31 M

• TRANSCRIPT TYPE AMRH 32 M

• TRANSCRIPT TYPE AMRH 31 FM

• TRANSCRIPT TYPE AMRH 32 FM

(4) Research to determine if applicable extension was filed. If an approved extension is located for the tax period, abate or adjust the penalty as needed.

(5) A transcript generates six weeks after the first cycle in which the tax module has a credit or debit balance. Follow-up transcripts are issued every six months (26 cycles) for as long as the tax module still meets the established criteria.

(6) A transcript generates for each Form 5330 or Form 5500 module in either a credit or debit balance. The AMRH transcript records the following information:

• Transaction date

• EIN, MFT & Tax Period

• Plan Number

• TC 150 DLN

• Module balance

(7) Refer to the procedures outlined below for resolving Form 5330 or Form 5500 AM Credit/Debit Transcripts.

(8) In addition to the specific instructions below, see the following If and Then tables for procedures when working AMRH transcripts:

(9) When computing tax, penalty and interest, refer to IRM 20.2.5, Interest on Underpayments and IRM 20.2.11.20, Employee Benefit Plans. Apply payments on a balance due module to the return with the most imminent CSED first.

(10) Refer to the table below to resolve Form 5500 transcripts:

(1) Refer to the procedures below to resolve Form 5330, AM 31 transcripts. Secure the original return from files if needed to determine the correct liability amount (TC 150).

(2) Verify the green rocker money amount shown on the return matches the TC 610 payment posted to MF.

(3) Determine the correct TC 150 amount. One check may have come in for more than one tax and the tax may have been split on a separate Form 5330, during processing.

(4) Adjust the TC 150 amount if applicable by inputting a TC 290 increase via REQ54 for the appropriate money amount using the applicable HC (3 or 4).

(5) If the overpayment belongs to a different plan number, tax period or EIN, transfer the payment to the correct account using CC ADD/ADC 24. Don't correspond with the filer.

(6) If you can't resolve the credit module balance using the procedures above or a balance remains after taking the above steps, refer to the table below:

(7) If the filer states they overpaid the account by submitting duplicate payments and requests the excess credit be refunded, instruct the filer to submit an amended Form 5330. The claim must state in detail the reasons for claiming the refund. This information can be found in the instructions for Form 5330.

(1) Use these procedures when attempting to resolve a Form 5330, debit module balance. Secure the original return from Files (two attempts) before taking the following action.

(2) If we receive a response from the filer indicating that he/she will submit a payment, refer to the procedures in the figure below:

(1) If the overpayment belongs to a different plan number, tax period or EIN, transfer the payment to the correct account using CC ADD/ADC 24. Don't correspond with the filer.

(2) Research to determine if the filer submitted the payment as a prepayment to the penalty. If research shows it was a prepayment, follow procedures for Form 5500 penalty assessments.

(3) If you can't resolve the credit module balance using the procedures above or a balance remains after taking the above steps, refer to the figure below:

(4) If the filer states they overpaid the account by submitting duplicate payments and requests the excess credit be refunded, instruct the filer to submit a request to refund the money.

(1) If a module was previously fully paid within the payment grace period (21 calendar days if under $100,000 or 10 business days if $100,000 or more), input a TC 340.00 to stop accruals from posting and prevent notices from being issued.

(2) If balance on the account is ≡ ≡ ≡ ≡ ≡ or less and on BMFOLT, input a TC 340.00, hold code 3 and payment date. This removes the balance and stops future transcripts from generating.

(3) If the balance on the account is ≡ ≡ ≡ ≡ or less and on TXMOD, input a TC 341 with money amount, hold code 3 and payment date. This removes the balance and stops future transcripts from generating.

(1) Search for payment on IDRS and CFOL. Refer to Document 6209, IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, for information on displaying and using IDRS/CFOL information.

(2) Use CC NAMEI, NAMEB, to obtain TIN information.

(3) Use all appropriate IDRS/CFOL command codes to search for a payment, see examples below:

• SUMRY, TXMOD, to check for possible misapplied payments

• IMFOL, BMFOL, if no open TXMODs, or for the possibility the payment was made at another campus

• INOLET, INOLEX, to check all related TINs, valid or invalid, provided by filer

• URINQ, to research unidentified remittances

• XSINQ, to research excess collections

• SCFTR, Service Center Control File

• UPTIN, to check open and closed unpostables for a specific TIN

(4) Call or fax filer to request information needed to resolve the case, at least two times. If unable to contact the filer, use the appropriate "C" letter.

(1) According to IRC 6511(a), a claim for credit or refund, penalties and interest previously paid must be filed by the later of:

• Three years from the original return filing date.

• Two years from the tax payment date of TC 610, 650 or 670 and 2 years from the cycle date of TC 700, 706, 730, 736 or if a 6603 deposit/cash bond, two years from the date the deposit/bond is converted to a payment of tax.

(2) For a claim filed within the three-year period, the amount to be credited or refunded is limited to the tax paid during the three years immediately preceding the filing of the claim, plus the period of any extension of time to file. IRC 6511(b)(2)(A).

(3) For a claim filed within the two year period, the amount is limited to the portion of tax, penalties or interest paid during the two-years immediately preceding the filing of the claim. IRC 6511(b)(2)(B).

(4) The filing of a claim for refund keeps the statute open only with respect to the item(s) described in the claim. Generally consider a supplemental claim filed after the expiration of the statute that requires the investigation of facts or legal positions that wouldn't have been disclosed by the investigation of the original claim as an untimely new claim.

(5) A consent to extend the statute of limitations on assessment (e.g., the IRS and the filer sign a Form 872, Consent to Extend the Time to Assess Tax), extends the statute of limitations for claiming a credit or refund to six months after the expiration of the assessment period. IRC 6511(c). If the filer and the IRS executed a restricted consent, the filer’s ability to claim a credit or refund during the extended period of limitation on assessments is limited to the same item(s) covered by the restricted consent.

(6) The statute of limitations for claiming a credit or refund may be extended by agreement only by the execution of a consent to extend the statute of limitations on assessment on or before the expiration of the assessment period.

(7) The general period of limitations on claims for credit or refund is suspended during the period that an individual is "financially disabled." IRC 6511(h). Financially disabled means being unable to manage financial affairs. The inability must be due to a medically determinable mental or physical impairment. The impairment must have one of the following affects:

• Expected to result in death.

• Already lasted for a continuous period of not less than 12 months.

• Expected to last for a continuous period of not less than 12 months.

(8) The filer must submit proof of the medically-determined impairment with the filer’s claim for credit or refund. The procedures for the submission are in Rev. Proc. 99-21, 1999-1 C.B. 960 (or its successor). The period doesn't include the time in which the filer’s spouse or any other person is authorized to act on behalf of the filer in financial matters (e.g., a guardian).

(1) A prohibited transaction is a transaction between a plan and a disqualified person prohibited under IRC 4975. A "disqualified person" is usually someone who has control over the business such as an employer.

(2) One of the most common prohibited transactions is where the employer holds on to employees' contributions to a 401(k) plan. The regulations treat this as a violation due to the use of money for the employer's benefit.

(3) The excise tax for a prohibited transaction arising from the use of money is calculated based on the "amount involved", the greater of:

1. The amount paid for the use for the period for which the money or other property is used.

2. The fair market value of the use for the period for which the money or other property is used.

(4) In addition, transactions involving the use of money or other property give rise to a prohibited transaction occurring on the date of the actual transaction plus a new prohibited transaction on the first day of each succeeding tax year or portion of a succeeding tax year which is within the taxable period. Filers filing Form 5330 use the actual money held on to and apply the excise tax of 15% when filing the original Form 5330. The Form 5330 was filed incorrectly and the filer amends the Form 5330 to accurately show the use of the money apply the excise tax of 15%.

(5) Statute period for IRC 4975 tax begins the date of the related Form 5500 filing.

(1) When a pension plan is over funded at the time of termination, excess assets may be returned to the employer if the plan so provides. The excess assets are determined after the satisfaction of all liabilities to participants and their beneficiaries. The Employer is required to report the reversion on Form 5330, by the last day of the month following the month in which the reversion occurred. The excise tax is 50% of the reversion amount.

(2) The Employer may be eligible for a 20% excise tax rate instead of the 50% rate if one of the following occurs:

• The employer establishes or maintains a qualified replacement plan following the plan termination and at least 25% of the reversion amount is transferred to this plan before the reversion. Also, at least 95% of the employer’s employees are participating under the new plan.

• As of the termination date of the qualified plan, the employer is in bankruptcy liquidation under Chapter 7 of Title 11 of the United States Code or in similar proceedings under state law.

• The employer provides certain pro-rata benefit increases in connection with the plan termination.

• If the Employer uses an excise tax rate other than 50%, the employer is required to explain why they qualify to use a rate other than 50%. This must be part of his supporting documentation. See IRM 21.5.11.21.5, Supporting Documentation, for additional information on "Supporting Documentation".

  Note: Don’t correspond with the filer for supporting documentation that may be missing if the tax due is less than ≡ ≡ ≡ ≡ ≡. Accept the return as filed and process the claim. See IRM 21.5.11.21.6, Claims Allowed in Full, No Filer Contact.

(3) Send letter to filer. IRM 21.5.11.21.7, Processing a Claim When Filer Contact is Needed.

(1) A Minimum Funding Deficiency exists whenever an Employer fails to contribute the required funding for the plan which is a Defined Benefit Plan by the funding deadline.

(2) The funding deadline is the 15th day of the 9th month following the plan year end.

(3) In most cases, the liabilities resulting from either Reversions or Minimum Funding Deficiencies will generate large dollar adjustments.

(1) If an amended return to claim a refund or credit is filed, the claim "MUST" state in detail the reason(s) for claiming the refund and provide the appropriate supporting evidence. See Regulations section 301.6402-2 for additional details.

(2) The following are recommended guidelines for "the appropriate supporting evidence:"

(1) After you get the original return, verify that all of the appropriate documentation was provided and don’t need to contact the filer, proceed as follows:

• Input TC 29X or appropriate credit adjustment

• Use Blocking Series 15 for BMF without the original return or Blocking Series 00 with the original return.

• Prepare Manual Refund if account is in credit status, see IRM 21.5.11.23, Manual Refunds.

• Close Control

(1) If you need to contact the filer (or POA) to obtain additional information, proceed as follows:

• Send letter 0324C using the appropriate paragraphs.

• Suspense case for 45 days, this allows 30 days for the filer to respond

(2) If filer doesn't reply, annotate on the history sheet, "NO REPLY" and work the claim as a "No Consideration". See IRM 21.5.11.21.8, No Consideration and Disallowance of Claims.

(3) When filer provides you the additional information, work claim as a Claims Allowed in Full, No filer Contact. See IRM 21.5.11.21.6, Claims Allowed in Full, No Filer Contact.

(1) Send appropriate disallowance letter 105C/106C, or no consideration letter 916C to advise the filer why we can't consider the claim.

1. Input a TC 290.00 in the appropriate blocking series.

2. File the claim, or amended return and a copy of the no consideration letter with the original return if the original return was filed electronically, associate the copy of the no consideration letter with the adjustment DLN.

(2) All claim disallowance letters must contain the specific reason for the claim disallowance. Appeal rights and the right to file suit should also be included. An IRC section should be cited if known and appropriate.

(3) See IRM 20.1.1.4, Methods of Appealing Penalties, for appeal claim procedures and IRM 21.5.3, General Claims Procedures, for additional information.

(1) When you receive a Form 5330 claim for refund in EP Accounts, prepare a complete claim package or case file and prepare Form 5597 (AIMS card) for AIMS input and establishment before routing the claim to the Classification Coordinator.

(2) Prepare the claim package:

• Secure a scanned copy of the original return from Files (two attempts will be made to secure the scanned copy of the original return).

  Note: Command code ESTABS is used to obtain the scanned copy of the return for an EIN and ESTABO is used to obtain the scanned copy of the return for an SSNV.

  Exception: If the claim package is extremely large, include the first 100 pages when creating the electronic copy. Make a note in the referral package email to explain the electronic claim package is incomplete due to the size.

• If unable to secure a scanned copy of the original return, the charge out document will be part of the package.

• Prepare the Form 5597 (AIMS card).

• Close your control as "EP AGENT"

• Send encrypted email with the complete claim package to the unit lead for review. The email subject line must include the last four digits of the EIN, Name Control, the function and the form number.

  Example: 1234 SMIT EP Form 5330 Claim.

• The unit lead will review, electronically sign AIMS card, and email package to EO Accounts clerk who will establish AIMS control on IDRS utilizing CC AM424, *TE/GE CPC Case Assignment (tege.cpc.case.assignment@irs.gov), with a cc to the unit manager.

• EP Accounts Unit screens TEGE claims to ensure that a specific return was filed with payment of an amount at least equal to the amount claimed. Attach all research to the claim form, amended return, or correspondence. Obtain the original return (if pre-EFAST/EFAST2 or Form 5330, ), recharge it to the Area Office, and also attach it to the claim form, amended return, or correspondence. If the original return involved was processed as a NMF return (for example, Form 5330), secure a copy of the index card and NMF Transcript (if available) and attach it to the claim documents. Establish on AIMS and forward by email the entire package to the TEGE program analyst who oversees the project.

  Caution: If the claim package is incorrect or incomplete, it will be returned by the unit lead to the originating employee to perfect.

  Reminder: If the claim package is extremely large, include the first 100 pages when creating the electronic copy. Make a note in the referral package email to explain the electronic claim package is incomplete due to the size.

(3) After you send the initial claim package to the Field, EP Accounts has no further actions.

(1) Before sending a request for a manual refund to the Accounting Function, thorough research must be completed.

(2) Failure to perform complete research, or if supporting documentation isn't provided when the manual refund is submitted to the Accounting Function, the manual refund request will be rejected back to the originator.

(1) Establish an IDRS History Item, 5792 to SC Acct., via CC ACTON, to alert employees that a manual refund is in process.

(1) Follow-up to ensure the manual refund was issued and the proper posting of credits to master file. Verifying that the credit posted ensures the filer isn't billed erroneously and prevents a duplicate refund being issued.

(2) Monitor accounts weekly (Monday-Wednesday) until the manual refund (TC 840) posts to master file and the account is in "0" balance. It may take 4-6 weeks for the TC 840 to post when issued via Form 3573.

(3) If the manual refund has not posted to ANMF for the Form 5500 account within 20 days, contact the Manual Refund Unit lead or manager to resolve the non-posting.

(4) Continue to work the case after the TC 840 posts or, if the only action requested was the manual refund, close the IDRS control base.

(1) Form 5792 is used to request an IDRS master file manual refund whenever possible.

(2) After completing Form 5792, the Team Lead will review and initial the form verifying the manual refund is appropriate, the research is complete, and the form is completed accurately. The Approving Official’s signature certifies to the Accounting Function the form was reviewed and is correct.

(3) To complete Form 5792, refer to IRM 21.4.4.5.1, Preparation of Form 5792, IDRS Generated Refund.

(1) Form 3753, Manual Refund Posting Vouchers, is used to refund NMF accounts that aren't on IDRS.

(2) After completing Form 3753, the Team Lead will review and initial the form verifying the manual refund is appropriate, the research is complete, and the form is completed accurately. The Approving Official signature certifies to the Accounting Function the form was reviewed and is correct.

(3) To complete Form 3753, refer to IRM 21.4.4.5.2, Preparation of the Form 3753, Manual Refund Posting Voucher.

(1) Use IDRS Research Tools/Command Codes (CCs) to research Business master file (BMF) and Employee Plans master file (EPMF). The following sections tell you how to use CC’s for EPMF account resolution. For additional information refer to IRM 2.3, IDRS Terminal Responses and IRM 2.4, IDRS Terminal Input.

(1) CC BMFOL provides on-line research of nationwide entity and tax data information posted to the BMF. BMFOL allows expanded research capability and displays an index (summary) of tax modules showing the tax year available. The screen contains nationwide information including entity, posted returns, generated tax data, status history, adjustment, and audit history data for a specific TIN. The BMF contains information provided via weekly computer tapes submitted from each campus. Several validity checks are performed before posting the information to the BMF. The BMF is updated every Thursday morning.

1. Definer "E"

2. Definer "I"

3. Definer "T"

4. Definer "R"

(1) Use CC EMFOL to research posted EPMF information. This file is updated weekly as the master file itself is updated. The definer you use with EMFOL depends on the type of information you need.

1. Definer "D" with a plan number, to view the Plan Administrator Screen. Use this screen to research the administrator EIN, name, address, and telephone number associated with a particular plan.

2. Definer "E" - to view the Filer Entity Screen. This screen displays the sponsor's name and address, name control, CAF indicator and all transactions associated with the sponsor's entity module. This screen also displays the prior primary name for name change transactions, and XREF EIN for account consolidations.

3. Definer "I" - to view an index. The index displays all plan numbers, plan names and tax periods on the record for a particular sponsor EIN. This screen also indicates whether a TC 150 has posted for a particular plan number and plan period and whether there is a record on CC ERTVU for the return.

4. Definer "T" with a plan number and plan period ending, to view the Tax Module Screen. This screen displays the controlling DLN and all transactions associated with a particular tax module.

(1) Use CC ERTVU to research the Return Transaction File. It is updated weekly. It displays most of the information, including the Edit Sheet, as well as some generated data.

(2) When researching an older plan period return (plan years through 199911), always research EMFOL first to determine the current information about the return posting. You may be need to request the original document in some of these cases if the most current return isn't available in ERTVU.

(3) To view data before the past two years, use the EP Return Information Classification System (RICS).

(4) For returns processed by EFAST/EFAST2, use a return status code.

• "C" - used for a current return record. This will be the latest completed processing return record posted to that tax period. If there’s an amended return posted, it will be the current return record.

• "H" - use for the historical return record. If an amended return has posted, you can use the historical record to view the original posted return.

• "I" - use for viewing the interim return record. This is a return that is in correspondence status at EFAST/EFAST2. It hasn’t completed processing and isn't posted to the master file.

• "U" - use for viewing an Unpostable return record.

(5) Input command code ERTVU with an EIN, plan number, plan period and definer code. Use a blank definer for Forms 5500, Form 5500-SF and 5500-EZ (5500C, 5500R Pre-EFAST/EFAST2 only).

(6) The first page of each return screen contains the information from the Edit Sheet, a line number index, and a list of what schedules are present for that return.

(7) The following is a list of definers that you can use with ERTVU:

(8) If you determine an EFAST/EFAST2 return was deleted erroneously, based on incomplete or missing information, it can be resurrected by using CC ERTVU definer "Z". Input CC ERTVUZNN-NNNNNNNDPPPYYYMM, the next screen will display the following message, Data Accepted, Record will be updated in the next processing cycle. Once the data is resurrected make the needed changes to correct the account and post the return.

(9) CC ERTVU is strictly for EPMF accounts; therefore, File Source "P" isn't required. The figure below is a list of definer codes and other criteria which should be used for ERTVU requests.

(1) The CC INOLE accesses the NAP with a definer code and TIN. See IRM 2.3.47.3, Command Code INOLE Input Format, for additional information.

(2) The definer code determines whether the input TIN is edited or not edited and whether a file source is needed.

(3) Definer Code "T" with CC INOLE is useful when research is desired on all accounts with the same SSN or EIN.

(4) Definer Code "S" is used when a specific account is already known.

(1) Use CC TXMOD to request a display of the tax module information for a specific tax period on the TIF. The display consists of entity data, posted returns, posted transactions, pending transactions and reject data and is available on IDRS TIF. Transaction DLNs are shown if CC definer D or L is input. A command code definer is required for CC TXMOD.

(2) Definer "A" displays most tax module information present on the TIF. See IRM 2.3.11, Command Codes TXMOD and SUMRY, for detailed explanation for input.

(3) CC SUMRY is used in tax account research. Use it normally as a first contact with IDRS because it provides an overall display of the filer’s account by giving a summary of all tax modules on IDRS for a specific EIN.

(1) Use CC ENMOD to research the sponsor entity to find the name, address and thorough entity information from input of the TIN. See IRM 2.3.15, Command Code ENMOD, for additional Information.

(2) ENMOD also shows any pending changes to the sponsor entity and any pending plan information, unpostable or reject conditions, account merges, delays and correspondence history.

(1) Name Search Facility (NSF) will allow IDRS users to query a national file of name and address data at Martinsburg Computer Center (MCC) using a filer name and address to locate a Social Security Number (SSN) or Employer Identification Number (EIN). The NSF contains the full filer name as it was filed on a return. It maintains multiple addresses for each filer name. The NSF is kept current with real-time updates and daily and weekly batch updates. CCs NAMEB/NAMEI are the primary method to access the NSF. See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP, for additional information.

• CC NAMES and CC NAMEI will search for SSNs

• CC NAMES and CC NAMEI will search for both primary and secondary filer names.

• CC NAMEE and CC NAMEB will search for EINS.

• CC NAMEE and CC NAMEB will search for both primary and "doing-business-as (DBA)" names.

(2) use CC NAMEB with a CC Definer

• B - Only BMF records are displayed

• E - Only EPMF records are displayed

• N - Only NMF records are displayed

• X - A hardcopy listing is desired