3.17.21. Credit and Account Transfers

(1) The credit and account transfer procedures within the IRM are a process used to manually transfer erroneously posted credits or accounts that are posted to master file.

(2) The assessment statute expiration date (ASED) must be imminent (no more than ten months from the request date) or expired before requesting a Master File (MF) to MF account transfer.

(1) The Taxpayer Services Commissioner has overall responsibility for the policy related to this IRM, which is published on a yearly basis.

(2) The account transfer team receives requests for account adjustments, parent/subsidiary credit applications, reactivation of retention register accounts, and other transfers. Many account adjustments are made directly by other campus functions on IDRS.

(3) The team Manager has the responsibility of ensuring employees receive the proper training to effectively process all requests that are received.

(4) Employees are responsible for ensuring the requests are reviewed for accuracy/completeness and for processing the requests utilizing the guidelines as described throughout the IRM.

(1) This IRM is updated and published annually after review and concurrence by impacted stakeholders according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMDs).

(2) Functional areas are responsible for reviewing the information in this IRM annually to ensure accuracy and consistency, and to promote effective program administration.

(1) The program effectiveness includes conducting reviews and analysis to detect and identify material or significant deficiencies that could adversely impact IRS audits and/or financial statements.

(2) These reviews are necessary to ensure Submission Processing is conducting business as prescribed in the governing IRM's, and are designed to identify potential internal control deficiencies that may impair the integrity of the general ledger accounts and/or financial reporting.

(1) A vulnerability assessment identifies, quantifies, and prioritizes the vulnerabilities of government programs and assets including systems/technology, property, funds, and employees.

(2) Vulnerability assessments may be conducted on any business process to assess the risks of business failure and/or weakness caused by internal or external factors.

(1) Program Reviews are mission critical to the health of accounting and deposit programs to ensure integrity of the general ledger accounts and accuracy of the financial statements.

(2) It is essential that each function conducts its operations with an emphasis on mitigating risks, identifying best practices, and adhering to IRM requirements.

(3) An objective assessment of program compliance, including all applicable procedures and guidelines, is necessary to ensure that adequate internal controls are in place.

(4) A program review ensures actions are in accordance with IRM procedures. SP, HQ, Accounting and Deposit Section, conducts program reviews to verify compliance with IRM requirements, address TIGTA/GAO findings, identify risks to internal controls, address error trends, and evaluate training needs, as needed.

(5) In addition, the reviews ensure IRM procedures are applicable, adequate, and adhere to Department of the Treasury and/or IRS guidelines.

1. Program reviews will be planned and conducted based on business needs and priorities.

2. Notification will be provided to the SP campus leadership in advance.

3. Reviews will be conducted to evaluate program delivery and conformance to administrative and/or IRM compliance requirements.

4. The program review summary report will outline observations and recommendations for program guidance, corrective actions, and/or mitigation strategies, as appropriate.

5. A memorandum signed by the Director, SP, will be forwarded to the Field Director, SP, with a high-level overview of the areas of improvement.

6. Functional areas will retain a copy of the report and all applicable supporting documentation in a centralized location.

(1) The following table lists the commonly used acronyms throughout this IRM

(1) Throughout this subsection, references are made to other IRMs in relation to instructions necessary to properly perform tasks in this IRM 3.17.21, Accounting and Data Control, Credit and Account Transfers. Management shall be responsible for having at least one copy of each of the referenced IRMs in the work area’s library. However, at management’s discretion, it may be deemed worth-while for each employee to possess a copy of a particular manual.

(2) The following Internal Revenue Manuals are frequently used in conjunction with this IRM and must be referred to when additional clarification is needed.

• IRM 2.4.17, IDRS Terminal Input

• IRM 3.10.72, Receiving, Extracting, and Sorting

• IRM 3.11.10, Revenue Receipts

• IRM 3.12.21, Error Resolution - Credit and Account Transfers

• IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF)

• IRM 3.17.46, Automated Non-Master File Accounting

• IRM 3.17.220, Excess Collections File (XSF)

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

• IRM 4.4.3, Credit Transfers and Reprocessing Returns Adjustments

• IRM 5.9.17, Bankruptcy and Other Insolvencies - Closing a Bankruptcy Case (MFT 31 transfers)

(1) To transfer a Master File account, a TC 971 with an AC 045 (IMF) or AC 745 (BMF) is input on IDRS, creating a TC 400 for the module balance.

(2) The TC 400 will generate a Computer Paragraph CP 96 or CP 296, Account Transfer Out Transcript Notice, with the amount of the account balance. These are input from the generated campus recap into the Non-Master File (NMF) suspense account, and set up on the NMF Service Center Control File (SCCF) with a dummy Form 813, Document Register.

1. Prepare Form 3413, Transcription List to transfer account back to the Master File.

2. Receive CP 96 for Individual Master File (IMF) or CP 296 for Business Master File (BMF) with Form 3413 and Form 813.

3. Forward Form 3413 and original Form 813 to Batching for processing.

(3) Entries are made from individual Form 813, one at a time, or from Revenue Accounting Control System (RACS) Input Reconciliation Sheet. If individual Form 813 is used for input, the document locator number (DLN) will be entered in "Source DOC ID" for audit trail. Transcribe or stamp journal identification number on documents as required.

(1) Transfers of credits can be made from Master File account to a general ledger account, or vice versa. If made on Form 3809, Miscellaneous Adjustment Voucher the transfer can be made without having to number the debit or credit going to general ledger account with a separate DLN. These transfers will be entered using either individual Form 813 and documents for general ledger accounts or from the RACS Input Reconciliation Sheet (Form 8166). If individual Form 813 are used for input, the DLN will be entered. If Form 8166 is used for input, use RS number. Transcribe or stamp journal identification number on documents for audit trail purposes as necessary.

(1) Tax module information may be researched using various Integrated Data Retrieval System (IDRS) and CFOL Command Codes. These include Command Codes TXMOD, MFTRA and ACTRA, as well as the Command Codes INOLE, IMFOL, BMFOL, PMFOL, RTVUE, and BRTVU. See IRM 21.2, Systems and Research Programs.

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

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

(1) All employees must be aware of IDRS notice issuance criteria. IDRS Command Code STAUP may be input to interrupt routine notice issuance if transfer action cannot be accomplished before the next notice is issued.

(2) The number of cycles delayed must be for a sufficient period to ensure that balance due notices will not be issued prematurely. It may be necessary to extend the previously input STAUP if the transfer procedure is lengthy.

(1) Credit and account transfers documents with their supporting documentation are to be retained in the campus for five years after the processing year. Local arrangements may be worked out between the Credit and Account Transfers Team and Files. Refer to Document 12990, Records and Information Management Records Control Schedules, Schedule 29 – Tax Administration - Taxpayer Services, Item 162, (Job No. NC1-58-82-9) to ensure records, in hard copy and electronic format, are appropriately managed, retained, and archived in accordance with the National Archives and Records Administration approved records retention and disposition authority. Also refer to IRM 1.15.1, Records and Information Management series for compliance with records and files management lifecycle (hardcopy and electronic), including creation, maintenance, retrieval, preservation, and disposition of all records to avoid inadvertent/unlawful destruction of records.

(1) In certain situations, an account will be identified where there is a credit posted on Master File (MF) and it needs to be transferred to Non-Master File (NMF), Foreign Bank Account Records (FBAR), or the EO User Fee account. There is no need for a Form 2158 to be prepared when transferring credits and these types of cases.

(2) The campus that identifies this type of case will need to prepare a Form 2424, Account Adjustment Voucher, to debit the MF and credit either NMF, FBAR account, or the User Fee account. If transferring the account to NMF, a current NMF transcript must be attached to the Form 2424.

(3) The Form 2424 and any supporting documentation must be sent to the receiving campus under cover of a Form 3210, Document Transmittal, or another transmittal that is used in lieu of the Form 3210.

• NMF transfers to Kansas City Submission Processing Center Non-Master File (NMF) Team - *TS KCSPC Non-Master File Team

• FBAR and EO User Fees to Ogden Submission Processing Center Transfer Team - *TS OSPC ACO Transfer Team

(4) The receiving team will take the following actions upon receipt:

• Review both the Form 2424 for accuracy and the NMF transcript to ensure it's current.

• Acknowledge receipt of the documents by signing the transmittal and returning the transmittal to the originating site.

• Separate the credit and debit documents and forward to RACS for journal action. Follow local procedures for processing MF and NMF posting documents. Note, for NMF transfers, the NMF transcript must be attached to the credit side of the Form 2424.

(1) The lettered paragraphs below correspond to the letters on the Form 2158, Credit Transfer Voucher (see Figure 3.17.21-1 ).

1. Enter the name and current address of the taxpayer.

2. Indicate the reason for the transfer and the Document Locator Number (DLN) of any processed document attached.

   Note: Include Trace-ID Number in Remarks section.

3. Enter Taxpayer Identification Number (TIN).

4. Enter cross-reference TIN.

5. Enter TIN-type, if any. (MFT 58 or MFT 78 only)

6. Enter the numbers of the sending (from) and receiving(to) Campuses. (See Exhibit 3.17.21-9, Campus Codes)

7. Enter a serial number from the credit transfer logbook. The serial number format is XXXX-XX-XX-XX. The first four digits are the sequence number; the fifth and sixth are the campus the credit is being transferred to; the seventh and eighth is the year; and the ninth and tenth are the campus the credit is being transferred from.

8. Enter the journal date (sender's posting date).

9. Enter the Campus received date of the payment.

10. Enter RR for Revenue Receipts, and DF for Deposit Fund Transfers. Use DF for Offers-in-Compromise and Seizure of Property.

11. Enter the tax period (MM/DD/YY).

12. Enter the MFT code.

13. Enter the transaction code (TC).

14. Enter the amount of the credit being transferred. If a debit is being transferred, indicate "debit" above the money amount. If an abatement is being transferred, indicate "ABA."

15. The manager will electronically sign the voucher with their digital signature includes the date signed.

16. Express mail NMF only Form 2158 with the documentation to the KCSPC.

17. Upload the Form 2158 with the combined pdf document file to the Form 2158 SharePoint, Incoming New Form 2158 receiving site folder.

18. This block is electronically signed and completed by the receiving campus.

(2) Prepare a Form 813 in duplicate. If not required by the RACS Team, Form 813 may be omitted per local procedure.

(3) Route Form 2158 to the RACS Team. Journal instructions are included in IRM 3.17.64.9, Credit Transfers.

(4) Form 2158 has a maximum processing cycle of six workdays from the date received in Accounting, per IRM 3.30.123, Processing Timeliness, Cycles, Criteria and Critical Dates.

(1) Losing Campus’ technicians will prepareForm 2158 and combine it with the supporting documentation into one pdf document file to be processed by the receiving campus.

(2) The Form 2158 and supporting documentation must be combined into one pdf document file. You will send the electronic document file to the receiving campus by uploading the document file to the Form 2158 SharePoint, Incoming New Form 2158 campus folder when the transfer does not involve a transfer to Non-Master File (NMF). For NMF transfers see IRM 3.17.21.3.4, Losing Campus - Non-Master File (NMF) Credit Transfers. If the supporting documentation includes an original return the transfer and documentation will be sent express mail to the receiving campus.

(3) Only one Form 2158 with supporting documentation combined pdf file will be uploaded to the receiving campus designated folder on the Form 2158 SharePoint located at: 2158 Processing (sharepoint.com)

(4) When you are ready to upload your document file (See below).

• Click on the Upload tab on the SharePoint

• Click on Files

• Locate and click on the file you want to upload

• Click on Open, this will upload your file

(5) After you upload the document file you will set up the Alert Me for your file to receive your acknowledgement from the receiving campus (See below).

• Hover over the document with your mouse

• Click on the three dot ellipsis for a menu

• Click on the Alert Me

(6) When the "Alert Me When Items Change" menu comes up you can then set up the notification method you prefer (See below).

• You can specify how you want the alerts delivered.

• You can specify the type of changes that you want to be alerted to.

• You can specify whether to filter alerts based on specific criteria. You may also restrict your alerts to only include items that show in a particular view.

(7) The Form 2158 must be signed even when sending by mail or uploading to the Form 2158 SharePoint.

(8) The receiving campus will send Form 2158 back to the losing campus as confirmation of receipt by mail (NMF) when the transfer was received by mail (NMF) or upload to the Form 2158 SharePoint Completed Form 2158 Confirmation folder for the losing campus.

(1) Losing Campus' technicians will prepare Form 2158 to express mail to Kansas City Submission Processing appropriately for addition on their local Automated Non-Master File System.

(2) Receive request for NMF credit transfers out which may include the following documentation:

• Form 813 marked "Out of Region."

• The original return that has been submitted by the taxpayer. or,

• Form 3244, Payment Posting Voucher, for NMF Subsequent Payments.

(3) Prepare Form 2158, Credit Transfer Voucher. Follow instructions in IRM 3.17.21.2, Credit and Account Transfers. Attach current NMF transcript(s) and Form 3244 or Return with the NMF DLN.

(4) Forward Form 2158 package to the RACS area for journalizing to the "In-Transit" account.

(5) When received back from RACS, attach Form 2158 to Form 3244 or return, along with the transcript, and express mail signed Form 2158 copy and backup to KCSPC.

(6) Keep a copy in the file and wait for a copy as acknowledgment from KCSPC.

(7) When the copy is received from KCSPC, send it to RACS to remove from the "In-Transit" account.

(8) After journalizing, receive a journaled copy from RACS, associate with the file, the unjournaled copy may be destroyed.

(9) When the transfer requests are not acknowledged within fourteen days from mailing to KCSPC contact must be made, via email at *TS OSPC ACO Transfer Team , to request the acknowledgement. Additional follow-up must be done in five days if the acknowledgement copy still hasn't been received. This will be accomplished through telephone contact with the manager of the transfer team. If the second follow-up contact does not result in the Form 2158 acknowledgement, notify Headquarters (HQ) for additional support in obtaining the acknowledgment.

(1) Receive Form 2158, copy and supporting documentation from other campuses in the credit and account transfers area. It usually contains an NMF credit transfer, but it may be a debit or abatement, which would be indicated on the form.

(2) When the Form 2158 is received with the original return, the form is to be separated from the Form 2158.

(3) Make a copy of the return and send the original return to the Batching operation so that it may be processed.

(4) The credit that came in with the return was deposited by the original Receipt and Control operation. The credit will be posted to ANMF using the Form 2158.

(5) Research using the Form 2158 to locate the appropriate NMF account.

(6) If the account is not located on NMF, or there is a discrepancy and it cannot be processed by the receiving campus, confirm and re-transfer on Form 2158.

(7) If the appropriate account is found and is processable, sort Form 2158 by area office or campus.

(8) Block and number each group of triplicate forms.

(9) Prepare Form 813 (two Part) for each Block.

(10) Route Parts one and two of Form 813 and a copy of the Form 2158 to the RACS Function for journalization.

(11) RACS will keep Part one of Form 813 for backup and forward a copy of theForm 2158 to the Credit and Account Transfers Team. RACS will also forward Part two of Form 813 and a copy the Form 2158 to NMF for posting.

(12) After verification of journalization the manager of the Credit and Account Team will sign Form 2158.

(13) Notate the journal number in the logbook.

(14) File a copy of the Form 2158 as backup.

(15) Express mail a copy of the Form 2158 back to the losing campus as confirmation of receipt.

(1) Refer also to IRM 2.4.17, IDRS Operations Handbook Input of Credit Transfers, if IDRS terminal input is to be used to affect the transfers. IDRS must be used whenever possible since IDRS transfers will retain cross-reference TIN, MFT, and tax period for microfilm research. In the event the taxpayer's module is not available for IDRS processing, proceed with the following instructions for preparation of the necessary documents.

(2) To prevent BMF and IMF Unpostables (Code 305 for BMF and 198 for IMF) use the bypass indicator if no freeze is necessary. To freeze the account, a TC 570 must be input as a secondary transaction code using the credit freeze code to a TC 650, TC 660, TC 670, and TC 760 if the credit portion of the transfer is directed to a tax module in Master File Status 06 (BMF only), 10 or 12 and a secondary code is valid. If a refund is desired, input TC 571 or TC 572 in a subsequent cycle to release the freeze.

(3) A TC 762, Reversal of Substantiated Credit, must NEVER be input to the IMF to adjust a TC 766 amount when the DLN of the TC 766 contains an "08" Document Code (Rebate amount relative to tax years beginning in 1974). A TC 762 must NEVER be input to the IMF to adjust a TC 760 manually input relative to the rebate program unless it was originally in error, or the liability has been adjusted.

(4) All TC 760s manually input relative to the rebate program will reflect a Document Code of "51," account transfer, but all TC 760s with a Document Code of "51" will not necessarily relate to the rebate program. Research of the transfer-in document file may be necessary to make this determination.

(5) Care must be taken in transferring backup withholding credits which may be identified by Tax Class 5, Doc Code 97. Backup withholding credits will be posted to the entity which will file the Form 1096, Annual Summary and Transmittal of US Information Returns, and the 1099 series information returns.

(6) If any Forms 2424 are prepared by the employees in the Accounting operation, they must be reviewed by the manager, or their designee, before being sent through for processing.

(7) The manager, or their designee, must initial the Form 2424, and the history sheet if applicable, to show that the case was reviewed.

(1) This subsection is meant to cover a wide range of debit-credit adjustments. Sort debit-credit adjustments as follows:

• NMF to BMF

• NMF to IMF

• NMF to NMF Intra-SC

• BMF to BMF

• BMF to IMF

• BMF to NMF

• IMF to BMF

• IMF to IMF

• IMF to NMF

(2) Form 2424, Account Adjustment Voucher, will be used for transfers from one account to another. It may be used between Master File and Non-Master File. Prepare in two parts (credit and debit) for any of the above situations.

(3) Form 3809, Miscellaneous Adjustment Voucher, is used for non-revenue receipt adjustments.

1. There will also be occasions when this document is prepared as a "one sided" transfer, e.g., to substantiate credit transaction code 760 which cannot be located in campus processing.

2. When Form 3809 is used to reverse a substantiated credit previously allowed, make a copy of Form 3809. File this copy with the original Form 3809 used to allow the substantiated credit. Indicate why the credit was not found before being substantiated.

(4) In early 1989, the Excess Collection File (XSF) was automated. Form 8758, XSF Addition, is used exclusively for transfers into the 6800 Account, Excess Collections. The Form 8758 are processed in the Excess Collections Unit, and they are the only personnel with capabilities to apply money from the file. All entries known to the requestor of Form 8758 must be completed, Excess Collection money is Non-Revenue Receipts that are more than one year old. An exception is: true statue credits which net credit in Revenue Receipts, see IRM 3.17.10.3.2.2.1, Receiving Statute Credits.

1. Form 8758 must be used by everyone requesting a transfer into the XSF.

2. Form 8758 must have documentation attached proving the existence of the credit to be added to the XSF as well as indicating the research performed prior to the transfer request. Incomplete packages will be returned to their requestor.

   Note: Refer to IRM 3.17.220, Excess Collections, for any additional information regarding this file.

(1) General explanation of Form 2424 follows.

1. The Form 2424, Account Adjustment Voucher, is used for transferring money from one account to another.

2. There are two parts to the Form 2424.

3. The credit copy is part one. Enter all data for the account to be credited into the lower, unshaded boxes of the credit copy. Enter all data for the account to be debited into the upper, shaded boxes of the credit copy.

4. On part two, which is the debit portion, data for the account to be credited will appear in shaded boxes and data for the account to be debited will appear in unshaded boxes.

5. If both boxes apply to the same taxpayer, insert the name control only in the lower box. For NMF, the address is also required.

6. Enter remarks and explanatory comments in the explanation box so the case can be readily understood without lengthy research during any subsequent reviews, such as for Electronic Federal Tax Payment System (EFTPS) payments and priority codes.

   Note: Include Trace-ID Number in Remarks section.

(2) The following two types of accounts will be given priority processing by Accounting to avoid undue burden and/or hardship to the taxpayer:

1. Offer-in-Compromise (OIC) cases: OIC is required to release Federal Tax Liens from the taxpayer accounts when the offer amount is paid in full.

2. Taxpayer Advocate Service (TAS) cases: TAS cases will be accepted by fax by Accounting to avoid the possibility of a hardship to the taxpayer.

(3) Prepare Form 2424 as follows. Form 2424 is received and processed via various means including SharePoint, Fax, and EFax. Any incomplete Form 2424 received in Accounting will be rejected back to the requestor.

1. The requestor will not put in the DLN. The entry will be made here when the forms are separated and blocked for input. See IRM 3.17.21.8, Form 3413 for instructions on assignment and control of DLN.

2. Enter the appropriate Area Office (AO).

3. For Master File enter the first name line only. For NMF, the address is also required.

4. Enter SSN, ITIN, IRSN or EIN that is to be debited. For MFT 58 or 78 SSN only, enter the Account Number Prefix "0". Use a hyphen after the SSN. The DLN of an NMF assessment, as applicable, can be entered in this area. When the adjustment action is to an NMF account on IDRS, enter an "N" after the TIN and the DLN of the NMF assessment in the "Remarks" box.

5. Insert the appropriate MFT codes. Do not enter NMF cross-reference MFT.

6. Insert the tax period to be debited by using the six-digit YYYYMM format.

   Example: For tax period ending March 1980, enter 198003. Use the beginning date of tax period for Form 11-C, Occupational Tax and Registration Return for Wagering, Form 2290, Heavy Highway Vehicle Use Tax Return, and for Form 706, U.S. Estate Tax Returnand Form 706NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return use "000000" as the tax period. Use the ending date of tax period for all other returns.

7. Enter the transaction date by using the 8-digit MMDDYYYY format. This will be the date of the original transaction that is now being reversed, transferred, adjusted, or corrected. Generally, this date (and the date of the transaction being reversed) may not be earlier than the beginning of the related Tax Period, or later than the date of input to the computer. Excluding the transfer of prepaid credit, where the return due date (determined without regard to extensions) is used as the transaction date, all credits/payments are moved/debited with their respective posting/23C dates (i.e., availability dates). Transaction codes 650, 651, 660 or 661 on Doc Code 24, however, may carry dates earlier than the start of the Tax Period. The debit-portion and credit-portion Transaction Dates are usually the same except when an offset is made to a later liability. In that instance, the debit side of the transfer will be the availability date of the credit, while the credit side of the transfer will be the date of the liability. Be sure to use the correct date so that interest is computed correctly.

8. Insert the appropriate debit transaction code. It must be valid for document code 24.

9. Insert the money amount that is being transferred. These are pre-journalized amounts.

10. The Secondary TC is normally used to code the credit account to assess collection costs (TC 360) or to freeze credits (TC 570) until a related assessment is made.

11. The Secondary amount is a non-prejournalized amount relating to the second TC, described above. When the second TC is 570, enter "Blank" in the secondary amount box.

12. The Tertiary (third) TC must be in the debit and credit blocks when this field is used.

13. The Tertiary Amount is a pre-journalized amount which is related to the Tertiary Code. Both debit and credit entries must be equal.

14. Insert the taxpayer's name. If NMF, the address also must be included. Underline the name control in brown.

15. Enter the Social Security Number, Individual Tax Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN), Internal Revenue Service Number (IRSN), or Employee Identification Number (EIN) that is to be credited.

16. The Form 813 (two part) amount must equal the total of the Primary and Tertiary Amounts.

17. Enter the tax period that is to be credited.

18. The transaction date will be same as in (g).

19. Enter appropriate Designated Payment Code.

20. Enter the appropriate credit TC. It must be valid for Document Code 24.

21. Enter the same amount as in (i).

22. Enter remarks and explanatory comments, in the explanation box, such as EFTPS payments and priority codes so that the case can be readily understood without lengthy research during any subsequent review.

23. Enter the date the form is prepared.

24. Enter the name, employee number, and telephone number of the individual initiating the document and area of preparation.

Note: All Form 2424 prepared by employees of the Accounting function must be reviewed and approved by the manager. The manager must place their initials, or digital signature, in this area to indicate their approval. The manager may delegate the review and approval responsibilities; however, this may not be delegated below the Lead Accounting Technician/Lead Tax Examiner level.

25. The Spouse Indicator Code must be present with TC 892 when two names are present on the IMF account.

26. The Bypass Indicator is currently used only to bypass Unpostable Codes 198 and 305.

(4) Scan the document to ensure accuracy of items such as tax period, tax class, transaction code, and transaction date. Circle in brown all unshaded NMF X-Reference boxes (debit or credit) so they will not be transcribed by ISRP.

(5) Route Form 2424 to the RACS Team for input.

(6) Send the NMF documents for posting to the NMF Team. Route the Form 813 for removal of the document from the SCCF.

(7) Send the Master File documents to Batching Team.

(8) Input of Command Code ADD24 on IDRS will display DRT24 Format.

1. This format is used for two-sided credit transfer adjustments. All data initially displayed was stored from TXMOD.

2. The Command Code includes On-Line Entity (OLE) and validation against the National Account Profiles, (NAP). If the correct entity is not input, the credit transfer will not be completed. Research must be done to find the correct TIN and Name/Name Control. You may use the research Command Code INOLE to view what is on the Master File. You may also use IMFOL/BMFOL to view the transactions posted to the Master File.

(9) Input a TC 570 on the module where the credit is being transferred so that a refund will not be generated, or the credit offset to a module with an outstanding balance. The freeze condition will stay on the account until a TC 571 is input or an assessment is input which brings the module to zero balance.

(1) A general explanation for Form 3809 follows.

1. The Form 3809, Miscellaneous Adjustment Voucher, is used for Non-Revenue Receipt credit transfers. The debit portion is shaded on the credit copy, Part One, and the credit portion is shaded on the debit copy, Part Two.

2. The majority of Form 3809, Miscellaneous Adjustment Voucher credit transfers will be one-sided. This means that only one part of the transfer (debit or credit) is being posted to an individual taxpayer's account (Master File or Non-Master File). The other side is posted directly to a General Ledger Account and will be held as a back-up for the account.

3. Form 3809 will carry either Document Code 48 or 58, depending on the use. See Exhibit 3.17.21-2 for the proper document codes.

(2) Preparation of Form 3809, Miscellaneous Adjustment Voucher. The Form 3809 generally requires the same elements of data as Form 2424. See IRM 3.17.21.4, Credit Transfers Using Form 2424 and Form 3809.

(3) Input of Command Code ADD48 on IDRS will display DRT48 Format.

1. This format is used also for two-sided credit transfer adjustments. All data initially displayed has been stored from TXMOD.

2. The Command Code includes "On-Line Entity" (OLE), validation against the National Account Profile (NAP). If the correct entity is not input, the credit transfer will not be completed. Research must be done to find the correct TIN and Name/Name Control. You may use the research Command Code INOLE to view what is on the Master File.

(1) Forms 2424 and Forms 3809 must be transcribed through ISRP in separate blocks. All vouchers must be sub-sorted as follows:

1. Sort debit portions from credit portions of Form 3809 and Form 2424.

2. Sort documents by IMF accounts, BMF accounts, and NMF accounts.

3. Sort NMF documents by Area Office. The Area Office (AO) code may be entered by the form's requestor in the top-left corner of the document; if it is not, use the taxpayer's address to determine the AO.

4. Sort the documents by Tax Class.

5. To prevent an ISRP BOB, do not allow vouchers with the same EIN, Tax Class, and Tax Period to be assembled on consecutive sorts. Intersperse these documents with documents having different entities.

(1) Prepare Form 514-B, Credit Transfer Voucher, as a transmittal sheet for the NMF transcript.

1. Number the Form 514-B and the transcript with the same DLN.

2. Enter at least the primary name line on Form 514-B.

3. Enter the original DLN(s).

4. Enter the 23C Date.

5. Enter the TIN.

6. Enter the Tax Period.

7. Enter the MFT.

8. Enter the Transfer Date.

9. Enter the campus being transferred from.

10. Enter the campus being transferred to.

11. Enter the Schedule Number.

12. Enter the balance being transferred.

13. Enter any special instructions for the receiving campus.

(2) Send the Form 514-B and transcript to the RACS Team. They will be returned after journalization.

(3) Sort Form 514-B by campus.

(4) Mail Parts one through four of the Form 514-B, two copies of the transcript and any other attachments to the receiving Campus.

1. Part one with copy of transcript is used by the receiving campus to input into their NMF.

2. Part two is used as the confirmation copy to be returned by the receiving campus. Confirmations may be sent by mail or email to the following:
   Austin - *TS AUSPC ACO Transfer Team
   Kansas City - *TS KCSPC ACO Transfer Team
   Ogden - *TS OSPC ACO Transfer Team

3. Part three is retained in the receiving campus Team for its files.

4. Part four is the posting document at the receiving campus.

(5) On all cases, prepare Form 3177, Notice of Action, for entry on Master File, with TC 131 and route to CSCO on Form 3210.

(6) Part two of Form 514-B is returned from the receiving office. Pull part six of the Form 514-B out of the file and compare to the part two copy to ensure it is your transfer.

(7) Prepare follow-up letter for transfers not acknowledged in thirty days from the transferee office.

(8) Send the part two confirmed copy of Form 514-B to the RACS Team. It will be returned after journalization is completed.

(1) Receive Form 12810, Account Transfer Request Checklist, and review the form to ensure it is the most recent revision of the form and that it is completed correctly. The Form 12810 requires a signature of manager or lead of the originator. All Form 12810 receipts must be processed within a timeframe of six working days. Any forms that need to be rejected will be sent back to the originator using an electronic format, either email or EFax. This will prevent an unnecessary delay.

(2) The request generally comes from the Adjustment, Collection, or Statute Team, and will indicate complete or partial account transfer. If a partial transfer is requested, a listing of the individual TCs to be transferred must be present. IDRS prints (TXMOD, IMFOL, BMFOL) may be attached to the Form 12810 with the applicable TCs being transferred highlighted. The Form 12810 must be date stamped when received in Accounting, you must edit the pdf electronic Form 12810 to add the Accounting receive date.

(3) Verify that the module is in debit or zero balance. If not, reject to the requestor for resolution.

(4) Verify that the TIN and the earliest name line year for the TO Account, where the assessment is to be moved to, is on the Master File. If not, reject to the requestor for input of TC 000 (Entity) or TC 013 (Year).

(5) For BMF accounts, penalty and interest accruals must first be brought up to date. The originator must either input a TC 290 for zero, with a priority code 5, or a TC 270 and TC 340 for the accrued amount if the account is restricted (G- or -I freeze). This action must be posted to the account before requesting an account transfer. Any BMF requests received that haven't had one of these actions taken must be rejected back to the originator for resolution.

(6) For BMF accounts a TC 290 PC 5 is not needed when any of following conditions are present:

• The return was timely filed and full paid.

• There is a TC 150 for zero.

• All of the adjustments on the module are for refunds.

• Any tax, penalties, and interest previously due has been full paid and all prior accruals have posted.

(7) For IMF accounts, use CC REQ77 to input TC 971, with AC 045; For BMF accounts, use CC REQ77 to input a TC 971 with AC 745. This will automatically generate a TC 400 and the CP 96/296 Notice.

(8) The employee assigned to complete the transfer needs to open a control base, using category IRRQ, when it is determined that the transfer request will be processed. Update both modules using CC ACTON as action is taken.

(9) Monitor for CP 96 or CP 296 Notice, which will generate upon posting of TC 400. The CP notice must be date stamped when received.

(10) When the CP notice is received related to an RPP-RBA case, the literals RPP-RBA must be put on the top of the CP notice prior to sending it to KCSC NMF team.

(11) Prepare Form(s) 3413, Transcription List, using the transactions from the CP as indicated by requestor on Form 12810 with valid transactions codes shown in Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

(12) If the originator has requested to have the TC 402 input, the Form 3413, Transcription List (Account Transfer-In), is to be prepared and submitted at the same time as the Form 3413 for the TC 370.

(13) Number Form 3413 and prepare Form 813, Document Register, in accordance with local procedures.

(14) Prepare Form 4028, Service Center Control File Adjustment Record, if applicable, to remove count and amount from Controlling DLN on NMF SCCF.

(15) Forward Form 813, Form 3413, and Form 4028 to RACS for journalization and processing to ISRP.

(16) Suspend the open case and monitor for posting.

(17) Upon completion of all posting, update and close control bases.

(1) MFT 31 mirror assessment processing is no longer processed using the credit and account transfer procedures - It has been automated to the Individual Master File (IMF). For more information contact the appropriate area Subject Matter Expert (Bankruptcy, Offer in Compromise (OIC), Exam, Appeals, etc.).

(2) If a true account transfer is requested that involves a MFT 31 account, this can be completed. Guidelines and procedures listed in IRM 3.17.21.5, Requests for Transfers to Other Campuses and IRM 3.17.21.5.1, Preparation of Form 514-B would still need to be followed.

(3) When trying to only move the debit side the TC 767 and TC 765 blocking series needs to be 940-949 to bypass the unpostable check.

(4) There are transaction codes with reference codes that will not post to MFT 31 account please refer to IRM 3.12.21.4.2.19(3) chart, Error Resolution - Credit and Account Transfers.

(1) A Form 12810, Account Transfer Request Checklist, is generally received from the Adjustment, Collection or Statute teams. The form must indicate complete or partial account transfer, listing individual transaction codes (TCs) to be transferred.

(2) Verify that the module is in debit or zero balance. If not, reject to the requestor for resolution.

(3) Before requesting a complete account transfer from MF to NMF via TC 400, the penalty and interest accruals must be posted to the module prior to the transfer. If more than one assessment is still owing (TC 150, 290, 300) the accruals must be split to indicate how much belongs to each account balance; if not, reject back to the requestor. The requestor must input and monitor until posted.

1. Unrestricted accounts - Input TC 290 for zero (.00), priority code 5, hold cold 4. This will cause Master File to force any accruals to post.

2. Restricted accounts (-I Freeze) - The originator will manually compute and input penalty and interest, if applicable.

Note: Do not transfer a MF account to NMF if the CSED has expired or is imminent. Verify the CSED on IDRS and if necessary, prepare a Form 3177 to be forwarded to NMF.

(4) Since the Automated Non-Master File (ANMF) system allows for only one 23C date per account, it is extremely important to ensure that the correct 23C date is identified for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

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

2. If the account contains more than one assessment and all but one of the assessments has been satisfied (by at least nine months), use the 23C date of the remaining balance due assessment. If this is the case, the Master File account will not require separate NMF assessments.

3. When transferring a balance due assessment (Partial) to another campus, notate that other related and satisfied assessments for this account remain on Master File.

4. The following transaction codes are assessment transactions that will each have their own CSED.
   IMF:150, 290, 294, 298, 300, 304, 308, 240, 160, 166, 170, 176, 320, 350. The TC 340 carries its own CSED only when the TC 290/300 is zero because the carryback and general adjustment zeroed each other out.
   
   BMF:150, 160, 166, 180, 186, 234, 238, 240, 246, 290, 294, 298, 300, 304, 308, 320, and 340. The TC 340 carries its own CSED only when the TC 290/300 is zero because the carryback and general adjustment zeroed each other out.

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

6. Include Abstract Numbers for all transactions transferring to NMF. The ANMF system requires them. They can be obtained from IRM 3.17.46 , Automated Non-Master File Accounting, Exhibit 3.17.46-6.

Note: The CP 96 and CP 296 is used in lieu of Form 514-B to transfer accounts into ANMF and will be considered the transfer and journal document.

(5) For Bankruptcy Transfers to NMF: Verify that the CSED is included on the request. If the account contains more than one assessment, a CSED must be included for each 23C date. If possible, the account will be sent to MFT 31 instead of ANMF.

(6) ANMF cannot be programmed to correctly compute penalty and interest in all instances. Some of the conditions are:

1. Armed Forces Combat Zone IRC 7508

2. 120 percent Tax Motivated Transaction

3. Reversal of Erroneous Abatement TC 860

4. Unmatched reversal transactions with money

   Note: Caution must be taken when processing a partial account transfer. Do not process a reversing transaction without the corresponding transaction which it is reversing.

5. If the Form 12810 indicates any of the above, notate on Form 514-B, "M", "Exception Code" Refer toIRM 3.17.46. Automated Non-Master File Accounting

(7) For IMF Accounts, use CC REQ77 to input TC 971, with AC 045; for BMF accounts, use CC REQ77 to input TC 971 with AC 745. This will automatically generate a TC 400 and the CP 96/296 Notice.

(8) Update the Master File module using CC ACTON as action is taken.

(9) Edit CP 96 or CP 296 using the information on the Account Transfer-Out Transcript notice and Form 12810. Use appropriate status codes, conversion and reversal transaction codes to edit the CP notice. (Refer to Exhibit 3.17.21-4 , Exhibit 3.17.21-5 , Exhibit 3.17.21-6 and Exhibit 3.17.21-7)

• A CP 96 that generates for MFT 55 with TC 240, REF-NUM 618 on master file denotes Trust Fund Recovery and must be input to the ANMF system using MFT 17 and Abstract 001.

• The TC 806, which is changed to a TC 800, will not have a date beside it. You will need to add the date. The due date of the return will be used as the transaction date for the TC 800.

• The correct status must be used when loading the account(s) to NMF. The correct status would be the status that the account was in prior to status 29, unless that status was 60 or 12. If the status prior to status 29 was 60 or 12, then you would use the preceding status.

(10) Number the CP notice and prepare Form 813, Document Register.

(11) Forward CP notice and Form 813 to RACS for journalization and processing.

(12) Suspend the open case and monitor for posting to ANMF.

(13) Upon completion of all posting, request a NMF transcript, update and close your control base.

(1) Master File is not able to accept an unlimited number of transactions on any given account module. When a master file account contains too many lines and the module has moved into overflow status, a transaction code (TC) 400 will systemically post to transfer the account module to Automated Non-Master File (ANMF). After the TC 400 posts to the account, a Computer Paragraph CP 96 (IMF) or CP 296 (BMF) is generated automatically without the input of a TC 971 AC 045. This transcript is identified by a block number 999 and the word Overflow under the transcript title.

(2) An Overflow TC 400 systemically generates for a BMF Account with a zero, debit, or credit balance.

(3) An Overflow TC 400 systemically generates for an IMF Account with a zero or debit balance. If an IMF Account is in credit balance and has reached its line limitation, a requestor can prepare a Form 3809 to move the total module credit amount to the NMF 4430 Account so that the IMF Account will be at zero balance and generate a TC 400. (See Figure 3.17.21-2

1. The Form 3809 is sent to the Kansas City Transfer Team mailbox at *TS KCSPC ACO Transfer Team for processing.

2. The Kansas City Transfer Team reviews the Form 3809 and ensures the credit amount being transferred matches the total credit module balance on IMFOL.

3. After reviewing the Form 3809 the Kansas City Transfer Team sends the Form 3809 to the NMF Team for review and processing to the 4430 Account.

4. The Kansas City Transfer Team will monitor the account for the TC 400 to post. If it does not post, they will contact their local P&A for assistance.

(4) The Transfer team at the controlling campus will receive the CP 96 or CP 296, and access IDRS command code TXMOD and print all pages for the account. The originating campus will complete the procedures that are outlined in (5) through (9).

(5) Since the Automated Non-Master File (ANMF) system allows for only one 23C date per account, it is extremely important to ensure that the correct 23C date is identified for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

(6) The following transaction codes are assessment transactions that will each have their own CSED.

(7) If the account contains more than one assessment and there is an unreversed TC 534, the account will need to be split to establish separate NMF accounts. This will be completed by the originating/losing campus.

(8) If the account contains more than one unsatisfied assessment, the losing campus will prepare a separate CP notice for each assessment taking care that the correct 23C date for each separate assessment is used.

(9) The TC 806, which is changed to a TC 800, does not have a date associated with it on the CP notice. You will need to add the date. The due date of the return will be written next to the TC 800 as the transaction date.

(10) The following instructions will be followed by Kansas City once the overflows are received.

(11) When an overflow account is received and it contains a civil Penalty Reference Number (PRN) 631, the following steps must be taken.

• Change the PRN to 630

• Code the CP notice with MFT 28

• Annotate the CP notice to reflect abstract number 189

(12) On the CP notice highlight the name, address, form number, and TIN. Place three lines in the right margin, using the highlighter, for information to be added later.

(13) Review the CP notice to identify all zero (.00) amount transaction codes and line through the transactions, except:

• TC 150

• Un-reversed TC 470

• TC 480, TC 481, and TC 482

• TC 520, TC 521, and TC 522

• TC 530 and TC 531

(14) Not all master file transaction codes can post to ANMF. Using the chart in IRM 3.17.46.6.16.1 (4), Master File Overflow Transfer-In convert the remaining transaction codes on the CP notice.

(15) When an overflow occurs on an account that contains a Penalty Reference Number (PRN) 631, the PRN needs to be changed to PRN 630. You will also need to change the MFT to 28 and use abstract number 189.

(16) Edit the entity data as follows.

• Underline the name control

• Write the MFT (20) above the form number

• And place an N after the TIN

(17) In the right margin, where you've placed the three highlighter lines, write the following information:

• Overflow from XXX (insert the correct campus symbols)

• XREF SSN (if there is a cross reference TIN on INOLES, write it in this area)

• DLN of the TC 150, TC 290, or TC 300 that is the 23C

(18) If notices have been issued to the taxpayer, these notice dates must be loaded on ANMF. Write the status and date on the CP notice under the DLN of the 23C. See the chart in Exhibit 3.17.21-4 for further instructions.

• If the account is currently in or has ever been in status 58 after the 23C date identified above, this indicates a fourth notice has been issued. Place this notice date on the CP 96 or CP 296 as, Status 58 - xx/xx/xxxx. Notice dates cannot be prior to the 23C date assigned on ANMF.

• If the account is currently in or has ever been in status 22 or 26 after the 23C date identified above, this indicates TDA. Place this notice date on the CP 96 or CP 296 as, Status 22/26 (whichever is applicable) - xx/xx/xxxx. TDA dates cannot be prior to the 23C date assigned on ANMF.

(19) Assign a NMF DLN to Form 514-B and the CP notice.

(20) Verify the CSED has not expired. IDRS research needs to be completed to verify the CSED, prepare a Form 3177, If necessary, to have the correct CSED posted to ANMF.

(21) Prepare Form 813 and forward Part 1 to the RACS Team.

(22) Route CP notice to the RACS Team and then the NMF Team.

(23) Review the account for payments with a Designated Payment Code of 05. These are NOT installment agreements. They are Continuous Wage Levy (CWL), and the account will NOT be put in ST60 on NMF. Use previous status from the account and do not process a Form 3177.

(24) Special Instruction regarding BMF: An overflow TC 400 BMF Account can post with a zero, debit, or credit balance. If the BMF tax module on an overflow transfer account has a credit balance it will post, and the following special procedures are to be used. (These procedures were developed because the Service Center Control File (SCCF) does not accept a Doc Code 51 with a credit balance).

1. From the generated CP 296, prepare Form 514-B in the usual manner as for a debit module transferred.

2. Number the Form 514-B with a Doc Code 51 for benefit of ANMF.

3. DO NOT prepare Form 813 for the Form 514-B with a Doc Code 51.

4. In addition to the Form 514-B, prepare credit side only of Form 3809 with TC 400 and the amount of the credit transfer. (The Form 3809 is for audit trail and control purposes only.)

   Note: If the account is in credit status, you must prepare a Form 3809 in addition to the Form 514-B. You will also need to complete the additional steps listed below.

5. Number the Form 3809 using doc code 58

6. Prepare Form 813 for the Form 3809, with doc code 58 and the credit amount being transferred. Annotate the cross-reference doc code 51 DLN on the Form 813.

7. Send the second copy of the Form 813 to ISRP to establish the doc code 58 DLN and credit amount on NMF SCCF.

8. Prepare documentation for processing to ANMF.

9. List the cross-reference doc code 51 DLN on the Form 514-B.

10. List the cross-reference doc code 58 DLN on the Form 3809.

11. Attach the Form 3809 on top of the Form 514-B.

12. The Original Form 813 (with doc code 58) is the cover control document for ANMF processing with doc code 51.

13. Annotate on a folder Overflow Credit Balance Special and forward to NMF.

(1) The Account Transfer-In program is designed to transfer into the Master File a list of all transaction codes, dates, and amounts on a single record.

1. Each Account Transfer-In will post to the Master File with a primary TC 370, additional debit or credit transaction codes, plus other wage amounts and appropriation, status, and abstract codes.

2. The TC 370 does not appear on the transfer document but is generated as part of the program with the transfer-in amount. The TC 370 must be entered on Form 813.

(2) Accounts are transferred into the Master File on Form 3413, Transcription List. See the Multimedia Publishing website for the latest revision of Form 3413.

1. Form 3413 are prepared by the credit and accounts transfer team and represent previously made assessments. The requestor must be identified on the request for a transfer so that unprocessable transfer requests may be returned.

2. Reactivations from the Retention Register are covered in detail in IRM 3.17.21.7, Reestablishment of Retention Register Accounts these are numbered with document code 52.

3. Account Transfers on Form 3413 include Business Master File (BMF) transfers, Individual Master File (IMF) transfers, re-transfers, and manual assessments. These are numbered with Document Code 51.

(3) All account transfers-in must contain either a debit or a zero balance. If the account is in credit balance, contact the requestor for resolution. A debit must be added before the transfer can be processed.

1. Contact the requestor to verify that the credit is valid. If the credit is not valid, return to the requestor for resolution.

2. If the credit balance is valid, the requestor will transfer the excess credit on Form 2424 (or DRT24) or Form 3809 (or DRT48) to the new module. Then transfer the account after the balance has been reduced to zero.

(4) Do not enter any individual transactions over $999,999,999.99. The Master File limits each amount field to fewer than 11 positions. (IMF Only)

1. Form 3413 may be modified by splitting any amount other than the Transfer-In amount and creating one or more new transactions.

2. If the Original Assessment Transaction Amount is too large, split the amount and enter the balance in the first available field(s) in sections 0219, using TC 290 in place of TC 150.

3. If the Transfer-In Amount is too large, prepare an additional Form 3413 and split the transactions so that the amounts will not be over $99,999,999,999.99.

   Note: If the sum of all the transactions exceeds $99,999,999,999.99 then process through Non-Master File at the Kansas City Submission Processing Campus. Masterfile can only take module balances of 13 positions, excluding the commas and period.

(1) The following types of cases require re-transfer action:

1. A master file account is posted to an incorrect TIN or tax period, creating a no-merge Martinsburg Computing Center (MCC) transcript on a statute account that cannot be abated and reprocessed or reassessed.

2. A Form 3552(C) assessment must be transferred.

3. An NMF account previously on the Master File must be transferred back to IMF or BMF.

4. An assessment needing transfer so a 23C date can be maintained, since the assessment Statute Period has expired. This kind of transfer, to be legal, must be made to the same taxpayer and account.

5. A request to transfer only specific transactions from one module to another, without the transfer-out module remaining closed with a TC 400.

6. The merge of an invalid to a valid TIN may require the creation of a temporary TIN.

7. A transfer from one Master File TIN to another Master File TIN may require reversing the TC 400 and all the transactions.

(2) Do not re-transfer an account if any of the following conditions are present:

1. If the 23C date does not have to be maintained and is within the statute assessment date, return to the requestor for processing as a normal adjustment.

2. If there are freezes on the module that must be resolved. See the list of freeze codes allowed to remain on the account in IRM 3.17.21.6 (7), Master File Account Transfers-Out.

3. If there is an AM06W Transcript, the previous TC 400 must be reversed.

4. If the intent is to circumvent valid statutory restrictions by establishing an assessment on a previously unassessed account.

5. If the account is in a credit balance.

6. When the entire account has been transferred to Non-Master File, Do Not re-open Master File with a TC 402 and reverse transactions.

(3) The TC 400 will produce a CP 96 (IMF) or CP 296 (BMF), Account Transfer-Out Transcript Notice.

(4) The CP 96 or CP 296 is then used to prepare Form 3413, Transcription List Account Transfer-In, to transfer the account back onto the Master File.

1. Enter appropriate transactions, dates, and amounts from the CP notice and Form 12810, onto Form 3413 using valid transaction codes for document code 51.

2. If a TC 150 and a TC 300 with an agreement date is present, show the TC 150 as the last transaction, with zero money, to prevent Unpostables.

3. Attach copies of the CP 96 or CP 296 and the Account Transfer Request List (Form 12810) to the Form 3413.

4. Form 3413 processing must be expedited so that posting to the proper account is not delayed. Prepare and send Form 3413 for processing in a six day work cycle per IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

5. See the remaining sections of IRM 3.17.21.8, Form 3413 for detailed instructions on the preparation and control of Form 3413.

(5) The following types of accounts require re-transfer on Form 3413 with TC 402 for the amount of the TC 400:

1. A NMF account previously on the Master File needing to be transferred back to IMF or BMF with any transaction which posted while the account was in NMF status.

2. A Master File account transferred to another period or TIN with a TC 400 (including a good return or assessment), to post a TC 402 for the amount of the TC 400, and reverse or abate posted transactions. For a list of reversal transaction codes see Exhibit 3.17.21-3 . This is necessary to open the module for future posting.

(6) For NMF account re-transfers back to the same tax module, TC 402 with the same date and amount as the TC 400 must be entered as the first transaction code (Section 01). Any other transactions which posted to NMF after the TC 400 will be added as secondary transaction codes. Any transaction that posted to Master File before the TC 400 will not be included.

(7) Assign block numbers 850-899 for re-transfers.

(1) When all action is completed and posted correctly, close the case control on IDRS with Command Code ACTON.

(2) File the transfer request and supporting data in the closed alpha file.

(3) Notify the requestor that the action has been completed for account(s) transferred to NMF only.

(4) When the IMF TC 400 account has posted after generating with TC 971, AC 045, make a folder for each block of work to be sent to the Files Section.

(5) Put the CP Notice in the folder, with all background information attached. The TC 400 DLN is the controlling DLN on the Master File.

(6) Write the DLN of the TC 400 block on the folder, i.e., XX-251XXX-888X. The Julian date will always be the same as the Julian date of the TC 971, AC 045.

(7) Attach a Form 3210 to the front of the folders showing the DLNs of all the folders with the words "TC 400 Actions. Shelve Immediately."

(8) Send the folders weekly to the Files Section, Cycle Control Unit.

(9) If requests are made for the originating documents, refer them to the Files Section, and tell them that the TC 400 DLN is the controlling DLN. Returns will be re-filed behind this DLN when returned from the requestor.

(1) The requests for items on microfilm are received on Form 5248, Transfer Request, from different IRS offices within and outside of the campus. There may be local procedures where the request information is stamped on the retention register transcript.

(2) All Form 5248 requests must be processed within twelve workdays.

(3) All requests must have retention register account records attached. If not, return to requestor, explaining that an attachment is needed. The request must have the account on it that is to be transferred.

(4) If the module is present on the accounts register already, return to requestor indicating a transfer is not necessary because the module is already present on the Master File account.

(5) Modules on microfilm retention register may be transferred using Form 3413, Transcription List, (Account Transfer In), or an edited copy of the Retention Register or MFTRAZ transcript. IMF and BMF tax modules are now kept on the Master File substantially longer than they were prior to multi-level processing.

(1) Upon receipt of the Form 5248, Transfer Request, with the Retention Register transcript, examine the transcript to determine what entity transactions are necessary. Initiators must have established the entity on IDRS before preparing Form 5248. Check IDRS to see if the module(s) requested on the Form 5248 are already present on the Master File. If so, annotate the Form 5248 and route the request back to the initiator. "If the account is on IMFOL with an R or BMFOL with an O or an R, it may be reactivated with the use of IMFOL-B or BMFOL-B." Return to requestor.

(2) If a request to re-establish an account involves an account removed after 1972, use IDRS to determine the entity status. When all tax modules have been moved to the Retention Register, the entity will remain on the Master File for 51 months after the last tax module was removed.

1. Input name line on IDRS for the oldest year (if more than one tax period is to be established) for that particular taxpayer.

2. If more than one tax period is to be transferred from the retention register, but the name lines are not the same, a name line for each year must be input on IDRS.

3. Accounts that have had the first name line changed or have been re-sequenced to another TIN since the module was removed cannot be automatically reactivated.

(3) Check the TIN on each request on IDRS using Command Code ENMOD.

1. If ENMOD exists on the IDRS (not a dummy module), no additional Master File information is required.

2. If no data is available or a dummy ENMOD module is present on IDRS, request account and entity from Master File.

3. If the research shows a tax period or the entity module posting is less than 51 months prior to the previous January, establish the name line for the tax period that is being re-established on IDRS. The Command Code ENREQ will be used to bring up the INCHG format, if it is IMF, or BNCHG format if it is BMF.

4. If there are four "2s" (2222) in the tax period column that is found on the retention register, the entire account was removed from the Master File. (This information appears only on records removed before 1973.) The modules will be shown on the retention register if there has been no activity for fifty-one months prior to the previous January. In this case, establish the entity on the Master File using Command Code ENREQ to bring up either the (INCHG or BNCHG) formats to input transaction code 013. Always use the name on the account record to input an entity change on IDRS.

5. The vestigial record is a record that is on the Master File computer tape. If there is a record of an account on IDRS, the prior periods of that account can be requested. If the account is not on the Master File, a TC 000 must be input.

(4) If BMF has no data available on IDRS, Master File research reveals activity in the account within the past fifty-one months, or if the name line is on IDRS already, no action will be taken.

(5) If an account is requested, but there is no account on the computer tape at Martinsburg Computing Center (MCC); a RS904 is showing on IDRS and the Form 3774, Request for Research has been returned with no record, lost record, or damaged record notated on the form or an unreadable transcript is received; then post a TC 430 (IMF) or TC 590 (BMF) with a zero amount and the current date. In either case, input on IDRS to establish the account.

(6) In general, the collection statute expiration date is ten years from the assessment date. If the statute has expired on a particular account, a TC 608 (Statute Expiration Clearance) will be present on the account.

(7) If there is a retention register request with an unpostable 197 on the account, input ENREQ to establish the name line.

(8) Input the name control change on IDRS.

(1) Refer to IRM 3.17.21.8.1, Form 3413, Section 01, for specific instructions on preparing Form 3413.

(2) Enter all transaction dates, codes, and amounts onto Form 3413.

(3) Element I, Transfer-In Amount, is always zero for Retention Register Reactivations.

(4) Elements A, B, C, and G of Section 40 and all of sections 36-39 must be blank.

(5) At local option, the microfilm retention register transcript or MFTRAZ transcript may be used to directly reestablish an account on Master File, eliminating preparation of Form 3413. To use this alternate procedure effectively, carefully highlight legible transcripts and prepare transcription instructions incorporating the above information.

(6) IMF Accounts moved to retention in 2009 were moved with one position of all money amounts systemically eliminated. If a request to re-establish an account involves an account that was removed in 2009, personnel will need to take the following action:

• IMF - Access IDRS to obtain an IMFORT print. The IDRS transcript will display the correct money amounts. The Form 3413 is to be prepared using the data on the IMFORT transcript.

(7) Once the entity is established, prepare the form to be used to reestablish the tax module. Form 3413 is needed for only a limited number of account reactivations. For BMF, no accounts were removed to retention in 1978 and 1979, so those accounts remained open for two additional years. The last Residual Master File (RMF) was produced in cycle 197901.

(8) Assign a projected posting cycle, 3 weeks from the input date, and notate it on part one of Form 5248. Return part one of the Form 5248 to the requestor. Attach part two of the Form 5248 to the back of the Form 3413 and retain.

(9) Assign the DLN on the transfer documents.

(10) Check ENMOD for Mail Filing Requirement (MFR). If 08, this indicates deceased taxpayer and must be changed using ENREQ or Form 3413 will not post.

(11) Prepare Form 813.

1. Enter Retention Register.

2. Enter either IMF or BMF.

3. Enter the DLN.

4. Enter current year.

5. Enter the transaction code 370.

6. Enter date of transfer.

7. Enter MFT code.

8. Enter the number of transfer documents that are in the block of work.

9. Enter debit and zero amount.

(12) Route documents to Quality Review if they are reviewed in the local campus.

(13) In 1979, an IRAF purge file was created for inactive and erroneous accounts on the Individual Retirement Account File (IRAF).

(14) In 2006, all IRAF files were moved to Individual Master File (IMF). The Purge File was similar to the Retention Register for other files, except that the IRAF has no regular retirement criteria.

(1) Name Control of taxpayer must be present. Refer to Document 7071, Name Control Job Aid, for Section 01 items.

(2) Taxpayer Identification Number (TIN) and TIN Type

1. For IMF, this number is a social security number (SSN).

2. For BMF, this number is an employer identification number (EIN), except for MFT 51, 52, and certain MFT 58 and 78. The EIN must contain a valid Area Office (AO) code in the first two positions.

3. This field must be present and must contain the nine numeric.

(3) MFT Code must be present and must be compatible with the tax class in the DLN. See Exhibit 3.17.21-8.

(4) Tax period

1. See table in Exhibit 3.17.21-8.

2. Most returns use the ending date of the taxable period. However, BMF Form 11, Special Tax Return and Application for Registry, Form 11-B, Special Tax Return Gaming Devices, Form 11-C, Occupational Tax and Registration Return for Wagering, Form 2290, Heavy Highway Vehicle Use Tax Return, Form 730, Monthly Tax Return for Wagers, and Form 4638, Federal Use Tax Return on Civil Aircraft, use the beginning date.

3. No tax period for any return may be later than one year after the current month.

(5) Date of Transfer

1. For a re-transfer prepared from an Account Transfer-Out Transcript Notice, enter the transaction date of the TC 400 for the From side of Form 3413, for the To side of Form 3413 enter the Return Receive Date as it appears on TXMOD.

2. For a Form 3413 prepared from consolidated Form 3552(C) for monthly returns, enter the latest transfer date.

3. For a retention register reactivation, enter the current date or a designated future date when the forms are blocked for input.

(6) Date of assessment

1. Enter the 23C date from Form 514-B or the latest Form 3552(C).

2. For re-transfers, you will have a FROM side (402) Form 3413 and one or several TO side (150/290/300) Forms 3413. For the FROM side Form 3413, enter the TC 400 date.  For any TO side Form 3413, enter the 23C date of the assessment being transferred (150/290/300). See IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A for REQ77/FRM77 instructions.

3. For retention register reactivations, enter the TC 150 date (or the date of other primary transaction code if no TC 150 is present).

(7) Original assessment transaction code

1. For a list of Transaction Codes that are valid for section 01, Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

2. Enter the first applicable code from the following list:

(8) Original assessment transaction amount

1. Enter the amount associated with the transaction code in Element G.

2. For TC 402, enter the amount of the TC 400 on the module.

3. For TC 430, enter brackets around the zero amount to indicate minus. All other entries in Section 01 are shown as plus amounts (although the actual amounts will be zero).

(9) Transfer-in amount

1. The amount must equal the sum of all transaction amounts (including Reference Number Amount) in sections 02-19, plus certain amounts in sections 20-23.

2. The amount must always be a debit or zero.

3. For retention register reactivations, the amount must be zero. Enter "00" in Element I for Document Code 52.

(10) Agreement Date. Enter the date.

(11) Correspondence Received Date. Enter date if present.

(12) Two Percent Interest Date. Enter date if present.

(13) Reference Number (If reference number is present with Doc Code 51, select the case that applies). If processing a complete account transfer with a TC 240 with penalty code 680, enter 680 as Reference Number on the TO side of Form 3413. Do not enter the TC 240 in Section 02-19.

1. IMF (MFT 55) with TC 402, use no Reference Number or Amount.

2. When transferring a civil penalty module, MFT 13 or 55, the original assessment transaction code must be 290 (or 300 with MFTs 02, 05, 30, 31,51, or 52) with zero amount. The amount of the original penalty assessment will be entered on the input document as reference number amount. (a 100 percent penalty being transferred to Master File.) The reference number amount must not be duplicated in sections 02-19.

3. Changes to Form 3413 and Form 3552(C), Reference Number 678 is valid for MFT 13 (BMF) for Document Code 51 on the civil penalty module for calendar year tax periods 198512 and subsequent. Reference Amount will be made invalid if greater than $50,000.00. Reference Number 678 will be used for calendar year assessments of the penalty for failure to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments, required by IRC 1275(c).

4. When Reference Number 658 is present with MFT 13, Reference Number Amount cannot exceed $5,000.00. Tax Period cannot be prior to 199812 and the month of Tax Period cannot be other than 12.

5. Instruction: If there is a Reference Number (01M), there must be an amount in (01N). If either Field is present, they must both be present.

(14) Reference Number Amount. Enter amount that pertains to the reference number. If processing a complete account transfer with a TC 240 with penalty code 680, enter the amount of the TC 240 here. Do not enter the TC 240 amount in Section 02-19

(15) Reversion Date (mmddyy)

(16) Plan/Report Number for MFT 46/74/76/85/86 ONLY

(17) Plan Year Ending Date (yyyymm)

(18) F8288 Trans Date (mmddyy)

(19) Excess Fringe Benefit Year, (yyyy)

(20) 4980F Amendment date, (mmddyy)

(1) Beginning in section 02 of Form 3413, list consecutively, the transaction date, transaction code, and transaction amount until all fields have been filled or all the transactions have been entered. This must be done for each amount following the original assessment in section 01.

1. The only transactions to be input with a TC 402 are those that occurred subsequent to the account transfer-out (NMF) or reversals of the original account.

2. When entering from a Retention Register Transcript, enter transactions exactly in the order of appearance on the source document.

3. Transaction codes 630, 632, 636, and 637 are entered in sections 20-23 only.

(2) Valid transaction codes for sections 02-19 are included in Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

(3) Some transaction codes are not valid on Form 3413 for a particular document code and Master File. Some of the reasons are:

1. The transaction code was once valid but is now obsolete.

2. Most transaction codes that are normally generated at the Master File are not valid for Document Code 51.

3. A transaction code may have been erroneously entered by a requestor, believing that it was valid for the document being processed.

(4) When certain transaction codes are invalid for the document code, they must be converted to the equivalent valid code, see Exhibit 3.17.21-5 and Exhibit 3.17.21-6 .

(5) Enter the dates, transaction codes, and amounts onto Form 3413 beginning with section 02.

1. Enter brackets around each amount associated with a credit transaction code, even if the amount is .00.

2. If the dates are not present for any code, determine the proper date as follows:

If Credit is from:	Then Enter:
Payments	Remittance received date.
Overpayments applied	Certification date of over-assessment.
Credit reversals	Date of the original credit.

(1) These sections were designed to accommodate special appropriation credits which may be funded by Congress. Currently, the only credit covered by this code is for solar and wind energy.

(2) The valid transaction codes for each Master File and document code are:

1. If TC 636 or TC 637 is present for a document code 51 record, convert TC 636 to TC 630 or TC 637 to TC 632.

(3) Enter the data onto Form 3413.

1. Left column of sections 20-23: Enter the transaction code.

2. Second column of sections 20-23: Enter a 2-digit appropriation code. Currently, the only valid codes are 02 for a credit (TC 630 and TC 636) and 03 for a debit (TC 632 and TC 637). These codes indicate wind and solar energy.

3. Third column of sections 20-23: Enter Appropriation Indicator "1" for a memo transaction (or reversal) for which the proposed credit is not funded. When the "1" is present, do not include the transaction amount in the total balance being transferred in.

4. Right column of sections 20-23: Enter the amount for each transaction. Enclose the credit amounts in brackets. Unless a "1" is present in the third column, these amounts are included for the transfer-in balance.

(1) These sections are for non-remittance "status" transaction Codes and Interest to Dates. (Figure 3.17.21-12)

(2) Left column of Sections 30-33: Enter the date of the status transaction code or interest to date. There MUST be an equal number of TC 340s in Section 02-19 and 30-33.

(3) Middle column of Sections 30-33: Enter the valid status transaction codes. The valid codes for each Master File and Document Code are found in Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

1. TC 550, 560, and 564 may be used only once per record. TC 560 and 564 in the same record is invalid.

2. TC 912 and 914 are valid only when both are present and only when they are present an equal number of times.

3. TC 916 and 917 are valid only when both are present and only when they are present an equal number of times.

(4) Right column of sections 30-33: statute extension date or assessment date. The statute extension date must be later than the status transaction date. Enter the date associated with TC 550, TC 560, or TC 564. For all other transaction codes, this field will be blank.

(5) If an invalid code is requested on the source document, indicate on the document going back to the requestor that the code is being dropped. If necessary, most of the codes can be input on IDRS after the Form 3413 has posted.

(6) The program will accept up to twelve transactions.

(1) These sections are used for reporting IRS abstract information for document code 51 only, when TC 15X, TC 29X, or TC 30X transaction codes are present.

(2) Abstract information is valid and required for the following forms:

(3) Enter the abstract numbers in the left column of Sections 36-39 and the amounts in the right column. (Figure 3.17.21-13)

(4) There are two abstract numbers for Tax Motivated Transactions, 221 (Tax) and 222 (Interest). They are valid for all MFT codes except 15, 46, 77, and 78. If one is present, both must be. The TC must be 340 or TC 341.

(5) The total of the abstract amounts excluding 221 and 222 will equal the net tax assessment. The net tax assessment is determined by adding the amounts associated with TC 15X, TC 29X, and TC 30X.

(6) The valid abstract numbers are:

1. MFT 03 (Form 720): 009 through 024, 026 through 098, 101 through 124, 303 through 310, 322, 323, 324, 326 through 329,340 through 390, 392 through 398, 411 through 432.

2. MFT 50 (Form 4720): 151 through 154, 182, 183, 213, 214, 221, 222, 237 and 238.

3. MFT 29 (Form 5329): 160, 162, 194, 195, 221, 222, 233, 235, 236 and 237.

4. MFT 30: 221 and 222.

5. MFT 31: 221 and 222.

6. MFT 49: 163 and 164.

7. MFT 61: 001 through 009, 013 through 035, 040, 221 and 222.

8. MFT 74; 165, 167 and 169.

9. MFT 76: 159, 161, 163, 164, 165, 167, 169, 200, 201, 203 through 206, 209, 224 through 228, 237, 450, 451, 452.

10. MFT 77: 218.

11. MFT 78: 217.

(7) Most errors in amount and abstract numbers can be resolved by examining the source documents. See IRM 3.17.41, Accounting and Operating Reports, for definitions of each abstract number. If errors occur frequently, contact the requestor or return the documents to the requestor for correction.

(1) Elements A, B, and C contain wage information for withholding and Federal Insurance Contribution Act (FICA) tax returns, Form 941, Employer’s Quarterly Federal Tax Return, Form 943, Employer’s Annual Tax Return for Agricultural Employees, Form 944, Employer’s Annual Federal Tax Return, and Form 945, Annual Return of Withheld Federal Income Tax. These fields are valid only for Document Code 51, Tax Class 1 records.

1. Income tax withheld will normally be present whenever the withholding tax liability is being established on the Master File for the first time. Forms 941 (MFT 01), Form 943 (MFT 11), Form 944 (MFT 14), and Form 945 (MFT 16) only.

2. Taxable Social Security Wages Form 941, Form 943, Form 944, and Form 945 only.

3. Taxable Social Security Wages for qualified sick leave (Form 941, Form 943, and Form 944).

4. Taxable Social Security Wages for qualified family leave (Form 941, Form 943, and Form 944).

5. Taxable tips (Form 941, Form 943, Form 944, and Form 945).

6. Taxable Medicare wages (Form 941, Form 943, and Form 944) up to 13 digits to be entered from line 5c, Column 2 of Form 941 (Rev. 1-2005). Valid only for Document Code 51, MFT 01, 04, 11, 14 BMF.

7. Additional Taxable Medicare Wages and Tips (Form 941).

8. Exempt Wages/Tips Paid to Qualified Employees this Quarter.

9. SECT 3121G Tax Amount.

10. Fractions of cents - adjustment.

11. Current quarter’s sick pay - adjustment.

12. Current quarter’s tips and group term Life Ins. - adj

13. Qualified small business credit - Form 8974

14. Nonrefundable portion of credit for qualified sick and family leave wages (Form 941, Form 943, Form 944, Form CT-1).

15. Nonrefundable portion of employee retention credit due to the COVID-19 crisis (Form 941, Form 943, Form 944, Form CT-1).

16. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021 (Form 941, Form 943, Form 944, Form CT-1).

17. Nonrefundable portion of COBRA premium assistance credit (Form 941, Form 944, and Form CT-1).

18. Income Tax Withholding - Adj.

19. Social Security & Med. Tax - Adj. (Form 941, Form 943, Form 944, and Form 945 only) This amount is valid only when the original assessment transaction code (Element G from Section 01) is 150, 290, 294, 298, 300, 304, or 308. If present, this amount plus the income tax withheld and backup withholding amounts will equal the sum of all 29X and 30X transaction amounts on the transfer-in record.

20. Special Additions to Federal Income Tax.

21. Special Additions to Social Security and Medicare.

22. Total Income Tax Withheld from wages (Form 941 and Form 944) posted after 12/31/2004.

23. Tips Deemed Wages.

24. Total Backup Withholding - Adj. (Form 945 only) Valid only for Doc. Code 51, MFT 01 and MFT 16, BMF.

25. Gross Income Paid Enter from Form 1042.

26. Railroad Retirement Tax Adj. Form CT1 (Line 13).

(1) Sort Form 3413 by tax class and type of transfer.

1. See Exhibit 3.17.21-8 for a list of tax classes for each return.

2. Separate the retention register reactivations (document code 52).

3. Sort by MFT Code for Form 1041, U.S. Income Tax Return for Estates and Trusts, Form 1065, U.S. Return of Partnership Income, and Form 8752, Required Payments or Refund Under Section 7519.

4. Except for retention register reactivations (Document Code 52), also sort by MFT for Forms 730, 2290, and 4638.

(2) Assignment of the DLN.

1. Positions 1 and 2 are for Area Office code for Doc Code 51 and 52.

2. Position 3 is for the Tax Class. See Exhibit 3.17.21-8 for a list of tax classes for each return.

3. Positions 4 and 5 - Document code 52 for retention register reactivations. Document code 51 for all other transfers.

4. Positions 6 through 8 - Enter the current Julian date.

5. Positions 9 through 11 - Assign the block number.

6. For retention register reactivations, blocking will be determined by vestigial or non-vestigial. Vestigial record is present on the entity module. Non-vestigial is no record on the entity. Use BBTS DLN tool to determine the correct blocking.

7. For re-transfers, begin with block 850.

8. For other transfers-in, begin with block 200.

9. Positions 12 and 13 - Enter a consecutive serial number, beginning with 00.

10. Enter the year digit.

(3) Prepare Form 813 for each block.

1. For Forms 1041, Form 1065, and Form 8752, enter the MFT Code to the right of the date block.

2. For Form 1041, Form 1065, and Form 8752, note "BMF" to the left of the words "Document Register".

(4) Route pre-journalized blocks to the RACS Team for input.

(5) Route copy two of Form 813 to the Data Conversion Operations for establishment on the Service Center Control File.

(6) Route the blocked Form 3413 with Form 813 (original) to the Batching Team for input to ISRP.

(1) Do not transfer subsidiary corporation prepayments to a parent corporation until a consolidated Form 1120, U.S. Corporation Income Tax Return, is filed. When such credits are transferred, the transfer and other related actions described below will be initiated and controlled by the Campus with which the consolidated return is filed.

(2) Locate and verify credits claimed on line 32 of Form 1120.

1. Check IDRS for credits using command code SUMRY, on the parent. If the credit is found, bring up the account using command code TXMODA. Look for the TC 590 or TC 599. If the account is not on IDRS, request data from the Master File to verify credits claimed using BMFOL, BRTVU or one of the other Corporate Files On-Line (CFOL) research command codes. Annotate the log or local worksheet document. Examine the account transcript when received to locate the credit claimed by the parent corporation.

2. Use Form 851, Affiliations Schedule, and Schedule-K to help locate credits from subsidiary taxpayers. Compare amounts claimed on F-851 with credits available as shown on the transcripts.

3. Backup withholding may be present on line 32-F of Form 1120. No substantiation (Form 1099 Series) is required for entry of backup withholding on line 32-F. Since Regulated Investment Credit is normally entered on this line, the absence of an attached Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, may indicate an entry is backup withholding.

(1) Short period returns occur for several reasons:

1. A business consolidates to form a new corporation.

2. A taxpayer goes out of business.

3. A taxpayer has approval to change fiscal year accounting period.

(2) These returns are received from rejects and controlled in the same manner as the consolidated corporation returns.

1. Correct the Fiscal Year month and filing requirement, if necessary, before moving credits.

2. Input secondary TC 570 to freeze module from offsetting or refunding the credit. Input a TC 571 if a credit balance remains after the return posts.

3. Assign short periods on IDRS as IRRQ with ACTON.

4. Verify credits when transferring to the short period. If condition codes Y and F are not present, use ENMOD and ENREQ, which generate BNCHG to change the Fiscal Year month to set up the period.

5. Transfer credit and return Form 1120 to the Reject Team. Because of the national account profile (NAP) validation of the Credit Transfer Command Codes, there will be fewer Unpostables. If the transaction unpost, it must be corrected immediately.

6. If excess credits are shown in IDRS, transfer only the amount claimed on the return.

7. For refunds with a transfer to debit balance, do not change line amounts on the Form 1120 return.

(3) Procedures for researching and transferring credits and for releasing refunds are the same as for consolidated returns.

(1) Form 1120 and Form 1041 manual refunds are routed to Accounting when the forty-five day interest free period is in jeopardy. The Credit and Accounts Transfer Team will request a transcript to verify the estimated tax (ES) credits claimed on the return. If the credits are the same as claimed on the return, initiate Manual Refund procedures as prescribed in IRM 3.17.79, Accounting Refund Transactions, and IRM 21.4.4, Manual Refunds.

(2) All Submission Processing, Accounting manual refunds that are prepared and processed must be monitored by the initiator until the TC 840 post to eliminate issuing an Erroneous Refund.

(3) The procedures outlined in IRM 21.4.4.6.1, Refund Inquiries, Manual Refunds, Monitoring Manual Refunds, Effective June 20, 2023, responsibility for all manual refund monitoring is now performed at the Headquarters level.

(1) Form 3413 is used by Accounting - credit and account transfers function to record account transfer information for input via Integrated Submission and Remittance Processing (ISRP).

(2) Numbering

1. FLC (File Location Code)

2. Tax Class MF - depends on Form Number/MFT

3. Doc Code - "52" (MF)

4. Julian Date - Thursday (MF)

   Note: Ensure transaction date is current fiscal year

5. Blocking Series MF - "000-999"

(1) Tax Class will always be "6".

(2) Doc Code will be "58".

(3) Julian date is current date.

(4) Block will depend on tax form/MFT. See Exhibit 3.17.21-2.

(1) Tax Class will always be "6".

(2) Doc Code is "77".

(3) Julian date is current date.

(4) Blocking can be 100-999. Exhibit 3.17.21-6

(1) The Form 514-B is used to transfer the collection of a taxpayer's account from Master File to Non-Master File.

(2) Numbering

1. FLC (File Location Code) - 17, 31, 35, 38.

2. Tax Class NMF - "6" (always).

3. Tax Class MF - depends on Form Number/MFT.

4. Doc Code - "51" (NMF).

5. Julian Date - Monday or Friday (NMF).

   Note: Ensure transaction date is current fiscal year (e.g., 10/1/2007 - 9/30/2008)

6. Blocking Series NMF -depends on Form Number/MFT (Never use "000" Blocking on NMF.) See Exhibit 3.17.21-2.

(1) Form 2424 is used to transfer a credit or a debit between Master File and Non-Master File or between two Master File accounts. It consists of a credit copy and debit copy. The form is prepared in duplicate with the credit copy as the original.

(2) Numbering

1. FLC (File Location Code) - 17, 31, 35, 38

2. Tax Class NMF - "6" (always)

3. Tax Class MF - depends on Form Number/MFT

4. Doc Code - "24" (always)

5. Julian Date

   Note: Ensure transaction date is current fiscal year (e.g., 10/1/2014 - 9/30/2015)

6. Blocking Series NMF -depends on Form Number/MFT (Never use "000" Blocking on NMF.)

7. Blocking Series MF - "000-999"

(3) Valid transaction codes: 170, 180, 270, 280, 340, 360, 430, 610, 611, 612, 640, 641, 642, 650, 651, 652, 661, 662, 670, 671, 672, 680, 681, 682, 690, 691, 692, 694, 695, 700, 702, 730, 731, 732, 764, 765, 766, 767, 820, 822, 850, 851, and 852.

(1) Use Doc Code 48 or 58 depending on transaction code.

(2) Use current date for Julian date on Form 3809.

(3) Tax Class if MF (Master File) will depend on Form Number/MFT.

(4) Tax Class if NMF (Non-Master File) will always be "6".

(5) Blocking for NMF will depend on the Form Number/MFT. Never use 000 blocking on NMF.

(6) Blocking for MF can be 000-999.