Employees in the Accounts Management (AM) organization respond to taxpayer inquiries and phone calls as well as process claims and other internal adjustment requests. Additional background information can be found in IRM 21.6.8.2, Split Spousal Assessments Overview.

Delegated authorities and policy statements related to Accounts Management can be found in IRM 1.2.1, Servicewide Policy Statements. This IRM also references IRC 6103(e).

The Accounts Management Director oversees the guidance provided to employees.

A tax analyst in Accounts Management, Policy and Procedures, provides the content of this IRM.

Managers and leads ensure employees follow the guidance provided in this IRM.

Employees respond to and resolve taxpayers’ tax issues related to split spousal assessments following procedures in this IRM.

Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Contact Representatives (CRs) and Tax Examiners (TEs) and Field Assistance Individual Taxpayer Advisory Specialist (ITAS). For reports concerning quality, inventory, aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers, for Accounts Management managers. Use Data Analysis, Project PCD, found on the Control-D/Web Access server, to access aged listings.

Program Effectiveness: Program Effectiveness is measured and controlled through managerial and quality reviews.

Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement is referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, RICS, and Electronic Products and Services Support.

For a comprehensive listing of IRS acronyms, refer to the Acronym Database. Below are acronyms currently not listed in the database.

Listed below are the related resources commonly shown in this IRM (list is not all inclusive):

MFT 31 modules established, or processed, between January 2001 and January 2005 were established as split/transfer modules.

Split/transfer modules included transactions and balances for the liable spouse after the other was relieved, in full or in part, of the liability due to:

Split/transfer modules were established after January 1, 2005, if the case was:

MFT 31 modules established after January 1, 2005, were established as a mirrored module, except for Action Code 102 and 103, which are never mirrored. Master File programming for MFT 31 allows the systemic mirroring of the MFT 30 module.

As of January 1, 2016, Master File programming for MFT 65 allows the systemic mirroring of the joint SRP MFT 35 module.

The mirroring process systemically establishes two MFT 31 and/or MFT 65 modules. One for each spouse's TIN. Credits are systemically credited to the spouse's module.

The following account conditions cannot be mirrored:

Payments with DPC 31 are not mirrored to the spouse's module.

MFT 31 Exam / Appeals / AUR modules are created for one of the following:

The modules are systemically established but not mirrored.

These modules are identified by a TC 971 AC 102 or 103. Beginning March 23, 2011, Action Code 102 is used exclusively to create or identify restitution-based assessment MFT 31 modules.

Since non-mirrored accounts do not reflect what is on the MFT 30 module, review the MFT 30 for interest-free periods, such as Rev. Rul. 99-40, statute extensions, etc. If the taxpayer is entitled to an interest-free period, manually compute the interest on MFT 31. See IRM 20.2.5, Interest on Underpayments.

Research missing payments using normal procedures. See IRM 21.5.7, Payment Tracers.

DPC 31 prevents the associated payment from being cross-referenced to the other related MFT 31 module. DPC 31 payments should not be manually mirrored.

Use the following procedures to ensure payments are credited to the correct modules:

Adjustments are input in the same manner as the MFT 30 and/or MFT 35 and will post without a TC 150 present.

Adjustments are not mirrored, however, adjustments to refundable credits do mirror. See IRM 21.6.8.4.2.1, Mirrored Modules, for a list of transaction codes that are mirrored using a corresponding credit (TC 766 reference number 337). If necessary, input multiple adjustments, one on the primary spouse's module and one on the secondary spouse's module.

The adjustment amount may vary for the primary and secondary taxpayer. Verify adjustment amounts before inputting the adjustment.

Information input to MFT 31 is not transmitted to the Social Security Administration. Do not input reference numbers associated with Social Security or Medicare tax, or the income that produced the tax, such as self-employment or tip income, on MFT 31 modules. Input the necessary adjustment, without the reference numbers on the MFT 31 module(s). Changes to Social Security or Medicare tax, and the income that produced the tax, must be input on MFT 30. Input TC 290 .00, the appropriate reference numbers, RC(s) and HC 4 on the joint MFT 30 module. Forms / schedules related to these types of adjustments include:

Other reference numbers are not valid with MFT 31, such as First-Time Homebuyer Credit, see IRM 21.6.4.4.17.4, Manually Adjusting the Recapture Amount. CC ADJ54 will return error message "MSG 99 - REF-NUM EITHER INVALID OR NOT ALLOWED WITH MFT" . If this message is displayed, input tax, credit, and other allowable reference numbers on MFT 31, then input the restricted reference numbers on MFT 30.

When considering penalty abatement requests on MFT 31, if the facts and circumstances presented by one spouse clearly show it would apply to both spouses, remove the penalty on both modules.

Adjustment requests for an MFT 31 module with action code 102 or 103 are generally referred to the originating function.

Overpayments do not systemically generate a refund. The credit is held on the module and an REFMFT31 and/or REFMFT65 transcript generates, see IRM 21.6.8.6.2, REFMFT31 / REFMFT65 Transcripts. To prevent a transcript from generating, include Hold Code 4 when inputting an adjustment that will create an overpayment. Manually offset or refund the overpayment.

Systemic refunds are issued in the primary taxpayer's name only. A manual refund must be issued when both the primary and secondary taxpayer’s names are required on the refund. If the overpayment is a joint overpayment, a manual refund must be issued.

Multiple manual refunds must be issued if the joint overpayment:

Ensure any payment being refunded was not mirrored to the cross-reference module. If mirrored, reverse the credit (TC 766 reference number 337).

If it is necessary to issue a manual refund, follow the procedures in IRM 21.4.4, Manual Refunds, and:

DUPASMT transcripts generate when payments post to either spouse's non-mirrored MFT 31 module. This occurs when the MFT 31 was created by a TC 971 AC 102 — Exam Tax Court Case, prior to March 23, 2011, or AC 103 — Exam / AUR / Appeals Tax Court Case. If the module has a TC 971 AC 110, the transcript is issued after the posting of each subsequent payment transaction (TC 670, TC 706, etc.). The purpose of this transcript is to ensure each spouse's module is properly credited with a payment made towards a joint liability.

Generally, DUPASMT transcripts will not generate on mirrored modules. Transcripts generated on mirrored modules are based on the TC 971 AC 110 Julian date. If the TC 971 AC 110 has Julian date 999, an REFMFT31 / REFMFT65 transcript will generate. If the TC 971 was manually input, the TC 971 AC 110 will have a Julian date other than 999 which triggers a DUPASMT transcript.

The tax liability, in whole or in part, is reflected on both spouse's MFT 31 modules. The payment(s) must be reflected on both modules to assure proper balance due information and Accounts Receivable.

Upon receipt of the transcript, research all related MFT 30 and/or MFT 35 and MFT 31 and/or MFT 65 modules (on both the primary and secondary TIN) to determine necessary actions as shown below.

If research does NOT show an open control with category "REFM" or "REFA" :

When adjusting a statute year module and an entry is required in the "RFSCDT" field on CC ADJ54, use the IRS received date of the transcript with override code S.

When the module is paid in full, input a TC 972 AC 110 on both modules to stop future transcripts from generating.

REFMFT31 and REFMFT65 transcripts generate when the MFT 31 or MFT 65 module reflects an overpayment. A computer-generated TC 570 will post in the cycle the overpayment is created. The purpose of these transcripts is to ensure the overpayment shown on the module is a true credit, and not a "false credit" created by a mirrored payment, and thus subject to offset or refund.

Control REFMFT31 transcripts using category code "REFM" , REFMFT65 transcripts using category code "REFA" .

Upon receipt of the transcript, research all related modules (on both the primary and secondary TIN) to determine necessary actions as shown below.

Perform a side-by-side comparison of the two modules to ensure all proper transactions (payments, credits, adjustments, etc.) are mirrored.

If both MFT 31 modules are not full paid and all payments are not reflected on both modules, determine which payment(s) or portion of payment is missing from the module. Manually mirror the payment(s) following the steps below. If the payment(s) has a DPC 31, do NOT manually mirror the payment.

If the overpayment was created by a mirrored credit or a mirrored adjustment, research both modules to determine what type of transaction created the credit. Read this entire paragraph before taking action.

When the overpayment is a true overpayment, perform research to determine if the taxpayer is liable for other taxes.

When adjusting a statute year module and an entry is required in the "RFSCDT" field on CC ADJ54, use the IRS received date of the transcript with override code S.

If the primary and/or secondary tax module has a TC 971 AC 110, input a TC 972 AC 110 to prevent future payments from mirroring. When inputting the TC 972, use the transaction date of the TC 971 AC 110.

In situations where overpayments offset into both the primary and secondary modules creating a true credit and a false credit within 3 cycles of one another, ensure only the proper amount of tax, penalty and interest has been collected between the two modules. If necessary, reverse the overpayment offset, TC 706, instead of the TC 766. See Exhibit 21.6.8-4, Example: Refund Offset on Both Spouse’s Modules, TC 766 Generated on Both Modules, for an example of an offset that occurred one week apart.

If it is necessary to issue a manual refund, follow the procedures in IRM 21.6.8.5.3, Refunds.