A portion of the daily receipts of returns and transaction codes at a Submission Processing site requires research for Social Security Numbers (SSN) and perfection of the Individual taxpayer’s account. If the entity on the account and the entity on the return do not match, then an Unpostable is created. IMF Entity Unpostables is responsible for such research and perfection. IMF Entity Unpostables also processes specific documents related to filing requirements of the IMF taxpayer. This IRM provides procedures for processing unpostable returns and transaction codes by establishing, maintaining and updating entities on the IMF.

Authority of this IRM also comes from the following sources :

IRS Employee Contact--Restructuring and Reform Act (RRA) Section 3705(a).

Congressional Acts which outline additional authorities and responsibilities like the Travel and Transportation Reform Act of 1998 or the Tax Reform Act of 1986.

All Policy Statements for Submission Processing are contained in IRM 1.2.1. Additionally Policy Statements provide authority on the tax work being completed.

The Campus Director monitors operational performance for the Submission Processing campus.

The Operations Manager monitors operational performance for their operation.

The Team Manager/Lead monitors and ensures they have the tools to perform their duties.

The Team Employees follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Reports: System control reports on the Control-D WebAccess (CTDWA) and a general listing of the reports located in IRM 3.12.32 , Error Resolution - General Unpostables.

Program Effectiveness

Annual Review: The processes outlined in this IRM is reviewed annually to ensure accuracy and promote consistent tax administration.

Service Center Directors, Headquarter Branch Chiefs, and Headquarter Analysts do not have the authority to approve deviations from IRM procedures. Any request for an exception or deviation to an IRM procedure are elevated through appropriate channels for executive approval. This ensures other functional areas are not adversely affected by the change, and it does not result in disparate treatment of taxpayers.

See specific guidelines in IRM 1.11.2, Internal Management Documents System, Internal Revenue Manual (IRM) Process. Request for an IRM deviation must be submitted in writing and signed by the Field Director, following instructions from IRM 1.11.2.2.4(3). Any disclosure issues are coordinated by the Program Owner. No deviations can begin until reviewed by the Program owner and approved at the Executive level.

An acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term, such as IDRS for Integrated Data Retrieval System.

A list of acronyms and the definitions used in this IRM. This list is not all inclusive. For a complete listing of acronyms, please refer to the Acronyms Database (irs.gov)

The following IRM’s and resources will assist in performing the work as outlined in this IRM :

The objective of the Unpostable function is to maintain the integrity of the Master File by identifying and resolving transactions that are not compatible with existing Master File programming or normal Submission Processing campus operating procedures. When transactions cannot post to the master file, SP employees will use IRM procedures to resolve the unpostable condition. Unpostables are accessed using the GUF system. The GUF system sorts unposted transactions in "category codes" for all master files.

The Unpostable function must review and resolve unpostable records following IRM 3.12.32.7 , Unpostable Inventory Management Guidelines, and the instructions in this IRM to ensure proper processing and posting, and to minimize adverse taxpayer contact.

Integrated Automation Technologies (IAT) tools are designed to increase efficiency and accuracy of regular processing. The tools allow users to be more productive and help employees ensure accurate processing. The use of an IAT tool is mandatory. See the IAT website Integrated Automation Technologies - Home (sharepoint.com) for a list of available tools and User Guides. Managers will ensure that all employees receive training on the utilization and application of IAT tools.

IRM 3.12.32, General Unpostables, provides:

In general, tax examiners will not reassign cases to or from themselves to another employee number or area unless directed by specific instructions in this manual.

The CADE 2 Program Office in Headquarters is charged with the primary goal of implementing a single, modernized programming solution which provides daily processing of taxpayer accounts.

The CADE 2 solution is comprised of several components; to modernize the IRS to a daily processing environment with several Transition States.

With CADE 2, the IMF campus cycles are:

IMF transaction posting time frames are outlined as follows:

Individual Master File (IMF) processes and posts specific transactions daily. IMF identifies unpostable transactions each day of the cycle. However, GUF continues to run weekly. Unpostables for all 5 days of the IMF cycle are marked for GUF to locate for opening runs beginning on Mondays.

IMF does not re-analyze the account at the end of the cycle to determine if the unpostable condition is resolved. There is a potential that the transaction needed to resolve the unpostable condition may post on a different day in the same cycle. In this situation, close the unpostable with URC 0.

GUF 07 reports (which also generate Form 4251) contains multiple IMF data rows for each day of the production cycle (data for Day 1 of the cycle, data for Day 2 of the cycle, etc.)

Not all transactions or accounts post in IMF daily. Transactions or accounts marked as weekly resequence until Master File processes the end of the cycle on Thursday.

Corporate Files On-Line (CFOL) command code IMFOL and Integrated Data Retrieval System (IDRS) command Code TXMOD will contain indicators on the screen to identify whether the account is a Daily account or a Weekly account.

Weekly management review of unpostables includes identification of unpostables to be assigned and worked in the following priority:

Weekly management review includes:

To minimize delays and costs to other Submission Processing campus functions ensure the following:

When resolving Unpostable records, follow the intent of the initiator as much as possible within the provisions of the Internal Revenue Code and the appropriate Master File computer programming. If there is a conflict between the general and specific instructions, notify the headquarters analyst for a determination.

Include priority for processing payment transactions and the use of a hold via Command Code (CC) STAUP. For STAUP guidelines see IRM 3.12.179.15.2, Taxpayer Delinquent Investigation (TDI) and Notice Delay Information.

Use the guidelines in IRM 3.12.179.11.2, Taxpayer Contact to resolve Unpostables, for Additional Information, to ensure consistency in communication with taxpayers through phone and correspondence.

The Unpostable function must exercise precautions when correcting unpostable records. When a payment is identified for a tax module and posted or unposted within another module, proper research and credit transfers must be input to the correct TIN, and/or tax period. Accurate posting of these accounts will expedite processing and minimize adverse taxpayer contact.

Exercise precautions and do thorough research when correcting unpostable records to apply payments to the correct module. When a payment is identified for a particular tax module and has posted or unposted within another module, correct by closing related unpostables together or inputting a credit transfer. Accurate posting of these transactions will expedite processing and minimize adverse taxpayer contact.

Ways to minimize delay and cost to other campus functions:

Cash and non-cash remittances found during processing after the mail opening operation are referred to as "discovered remittances."

It is the responsibility of the Unpostable Tax Examiner to review the envelope for the possibility of a remittance when working unpostables involving missing payments.

Unpostable cases should not be reassigned between the Unpostable unit and Entity/Entity Unpostables unless specific criteria are met. Coordination with Entity Unpostables involves dedicating a specific basket or bin to place unpostable cases requiring special assistance (expedite process). These unpostables must be reviewed by Entity Unpostables within an established timeframe. No more than three business days can elapse, before the unpostable case is returned to the Unpostable Function to prevent aged unpostables. Expeditious processing of unpostables is imperative to avoid aged inventory.

Unpostables will reassign cases to the appropriate function if certain criteria are met.

There are four types of unpostable case closures:

To reduce the amount of interest paid by the IRS due to untimely processing, Interest Reduction Initiative Reports (GUF 07-42 and 51-43) and Summaries (GUF 07-43 and 51-44) generate for all BMF Transaction Codes (TCs) 150, 295 and 299 unpostable records where the credit interest date is in jeopardy or expired.

If the IRS does not meet the 45-day interest free period for return processing, interest must be paid to the taxpayer.

All unpostable returns identified on the GUF 07-42, New Unpostables with Interest Free Period Due to Expire report, and other unpostable returns which would result in a refund greater than the amount identified in the Campus as the Unpostable Interest Reduction Initiative tolerance amount, are processed as high priority work. Tax Examiners receive a GUF 51-43, Interest Reduction List report, listing "Interest Free Due to Expire" cases assigned to them. Cases must be worked, or documents ordered as soon as possible. Expedite manual refunds to Rejects if the interest free period is in jeopardy and the refund is $25,000 or more.

If a return is identified as "Amended" or "Superseded," and a TC 150 has posted, do not treat as a credit interest return. If the return is identified as a "Duplicate" or "Replacement," but no TC 150 is posted or pending, treat as a credit interest return if all other criteria is met.

Do not treat a return filed on the wrong form as a credit interest return, or any return to be reassigned to the Criminal Investigation (CI) function.

If the return is an unpostable code (UPC) 29X or UPC 49X (incorrect or invalid return conditions only), or the return has a math error condition(s), do not issue a manual refund. Use unpostable resolution code (URC) 8 to close the case to the Reject function for verification of the tax data and overpayment amount. Notate on the Form 8749, Unpostable Action and Routing Slip or 8-code slip, the interest computation date and any corrective action(s) needed. Coordinate directly with the Reject Function on any cases for which a manual refund may be needed.

If the unpostable resolution requires the input of a correspondence received date, use URC 8 to close the case to the Reject Function, noting on the Form 8749 or 8-code slip any corrective action(s) needed and the correspondence received date. Coordinate directly with the Reject Function on any cases for which a manual refund may be needed, if the correspondence received date plus 45 days indicates the interest-free period is in jeopardy.

After following the established procedures for ordering missing documents and the return cannot be obtained (Not in Files, Charged-out, or Missing), use CC UPCASD4 to close the case to Rejects (Special Search). Notate on the Form 8749 or 8-code slip, "Return unavailable."

When closing cases using URC 8 to Rejects, notate on the Form 8749 or 8-code slip, "Manual Refund."

IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2 Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

Local procedures are created or developed to provide specific instructions to local offices on specific programs. They supplement and support the IRM. Local procedures cannot deviate, contradict, or duplicate material in the IRM, nor can they set policy or change National program guidance. It is the responsibility of each manager to ensure all employees are aware of and have access to local procedures.

Provide a copy of all memorandums of understanding to the headquarters analyst.

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate [NTA]). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

While the Internal Revenue Service (IRS) is continually working to serve customers in a quality manner, some taxpayers still have difficulty getting solutions to their problems or getting timely and appropriate responses to their inquiries. Per IRC 7803(c), Congress established the Office of the Taxpayer Advocate and its functions within the IRS to assist these taxpayers. TAS has identified criteria that qualify taxpayers for TAS assistance. The Case Advocate will conduct an independent review of actions that have been taken or need to be taken to resolve the problems taxpayers are experiencing.

Employees should not view TAS Case Criteria as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief.

Under certain limited circumstances where "hardship" exists, the Service Center may issue a manual refund of excess credits without first satisfying outstanding tax liabilities. These refunds are known as "Offset Bypass Refunds" (OBR’s). OBR’s may not be issued to bypass a Treasury Offset Program (TOP) obligation. Credits holding on an account are not eligible for refund to the extent that they will satisfy a TOP obligation.

OBR’s can be requested by any functional office and must be signed by the authorized approving official as determined by your function.

See IRM 21.4.6, Refund Offset, and IRM 3.17.79, Accounting Refund Transactions, for instructions as to what situations qualify for manual refunds, and how to complete the manual refund forms (Form 5792, Request for IDRS Generated Refund, and Form 3753, Manual Refund Posting Voucher).

Slipped or mixed block conditions originate with the input of payments to the computer system. This can occur through Integrated Submission and Remittance Processing (ISRP) and Integrated Data Retrieval System (IDRS) in Area Offices. The key elements in identifying a slipped or mixed block condition include:

When a slipped or mixed block is discovered, resolve the unpostable condition and route the block to Accounts Management.

IRC 6325(a) requires the IRS to release liens within 30 days when a bond is accepted, accounts are fully paid, satisfied, or are no longer legally enforceable. The 30-day time frame begins when credits are received, regardless of correct posting. IRC 6325(a) requires the issuance of a release of federal tax lien within thirty (30) calendar days of the date on which:

Timely release and accuracy of the lien is essential. IRC 7432 gives taxpayers the right to sue the federal government for damages if the Service knowingly or negligently fails to release a lien.

Conditions that satisfy liens and may require manual release of liens are comprised of the following:

See IRM 5.12.3, Federal Tax Liens - Lien Release and Related Topics IRC 7432. Employees of functions with access to the Automated Lien System (ALS) will input lien release requests in these situations. For those functions that do not have access to ALS, determine the Centralized Lien Unit (CLU) lien release contact on SERP by going to:

If a TC 582 indicator is present on any unpostable tax module and there is no TC 583, expedite to CLU once the unpostable is resolved.

For tax years 2014 through 2018, certain individuals must have Minimum Essential Health Coverage (MEC), have a coverage exemption, or make a Shared Responsibility Payment (SRP). For tax years beginning after December 31, 2018, the SRP is reduced to $0. This is indicated on the return by:

The SRP is assessed and collected under the new MFT 35.

When the tax return posts, IMF generates the transactions to post the MFT 35 module one cycle later. The resequencing transactions can be viewed using CC IMFOLQ.

IRC Section 965 (Repatriation Tax or Transition Tax) requires certain taxpayers to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States. Taxpayers will generally include amounts in income under section 965 in tax years 2017 or 2018. Taxpayers can elect to pay the net tax liability under section 965 in installments over eight years under section 965(h). A taxpayer may not receive a refund or credit of any portion of tax payments properly applied to the inclusion year (generally 2017 or 2018) unless and until the amount of the payments exceeds the entire unpaid income tax liability for the inclusion year, including all amounts to be paid in installments under section 965(h) in subsequent years. This provision impacts both IMF and BMF taxpayers.

How to Identify IRC Section 965 returns and payments.

A Statute of limitation (Statute) is a time period established by law to review, analyze and resolve taxpayer and/or IRS related issues.

The Internal Revenue Code (IRC) states that the IRS assess, refund, credit, and collect taxes within specific time limits. When the statute period expires, the IRS can no longer assess additional tax, allow a claim for refund by the taxpayer, nor take collection action. There is an Assessment Statute Expiration Date (ASED), a Refund Statute Expiration Date (RSED), and a Collection Statute Expiration Date (CSED). Each has a different statute expiration period.

The Assessment Statute Expiration Date (ASED) is identified by Generalized Unpostable Framework (GUF) and monitored to ensure that the statute does not expire.

The ASED is determined as three years after the Return Due Date (RDD) or IRS received date, whichever is later.

Example of statute expiration date for a timely filed return:

Example of statute expiration date for a late filed return:

If the ASED is imminent (two months prior to ASED), notify the manager or work leader and take necessary action to resolve.

See IRM 25.6.1, Statute of Limitations Processes and Procedures.

When working a Form 1040-A or Form 1040-EZ unpostable (Doc code 207-210 only) that needs to be reprocessed, and you would normally close as URC 8, you will now close URC 1.

To convert Form 1040-A or Form 1040-EZ to a Form 1040, use Form 6114, and follow conversion instructions in IRM 3.11.3-17. Close the unpostable URC 1 with Nullification area code 41 to Accounting per IRM 3.12.32.14.1.

When closing the unpostable, In the remarks section on line 8 include remarks “EOY per HQ route to Accounting”. Please ensure you route the closed unpostable to the correct Accounting Campus by following the chart below.

If an assigned record is determined to have Criminal Investigation, Statute or Insolvency (bankruptcy) issues, the case should be processed in accordance with the following categories:

Document 47 or 54 exception: If URC 2 (void) is used and the transaction is remade by a prompt/quick assessment (TC 370) due to a Statute issue, the transaction should not repeat as a Statute unpostable.

If any of these conditions are present, hold unpostable processing. Set the case aside for the CI-Questionable Refund Detection Team (QRDT) function.

Refer to CI for review of any return or document if the taxpayer:

If the document is sent to CI or Examination for the above reasons by Code and Edit, DO NOT forward again. Continue with regular unpostable resolution procedures.

A frivolous argument expresses dissatisfaction with the substance, form, or administration of the tax laws and attempts to improperly avoid or reduce tax liabilities or to increase refunds by frivolous means. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10-1, Frivolous Arguments.

Review the return to determine if it appears to be a frivolous return.

The Integrated Data Retrieval System (IDRS) is a computer system with the capability to retrieve and update stored information about taxpayer accounts on a Master File.

The Taxpayer Information File (TIF) is the major database for use within IDRS. The TIF includes the following types of accounts:

The Name Search Facility (NSF) supports command codes (CCs) NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP to allow IDRS users to query a national relational database at MCC. Unpostable employees, who know the name and address of a taxpayer and need to locate a taxpayer's account number, or vice-versa, can use these command codes for research purposes. For additional information on these command codes see IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE and TPIIP.

System Messages -

Some transactions, payments and returns cannot post to the master file on IDRS due to programming checks for specific conditions. These conditions generate unpostables that may require review and resolution determination on the Generalized Unpostable Framework (GUF) system which is accessed through IDRS.

IDRS Command Codes - The IDRS command codes that create a transaction for posting to the Master File will have the TIN and TIN/name control validated using the TIF and the National Accounts Profile (NAP). Many IDRS command codes are available and each display different taxpayer data and serve different purposes.

The command codes will not return the "Request Completed" response until the TIN and TIN/name control have been validated by the NAP on the Master File to which the transaction will attempt to post. Some of the IDRS command codes affected by the Online Entity System (OLE) validation require the entering of a TIN and Name Control matching an existing Master File. Examples of such IDRS command codes are:

Some of the most common command codes used for research are:

The following command codes are used to input an action to the taxpayer's account:

RTR provides universal access to a consolidated database of remittance data and images generated at ISRP, RS-PCC, and Lockbox Bank processing sites. This system permits data/image storage for up to 7 years. It also provides immediate retrieval for images. Refer to IRM 3.5.10, Remittance Transaction Research (RTR) System.

Requests for access to RTR are made through Business Entitlement Access Request System (BEARS) and must be approved by management.

When payments are available on RTR, tax examiners should research to verify the payment was correctly applied. If the TIN is not notated on the image and/or the payment does not match the payment history of the account, research CC NAMEE for other entity’s and correct the payment accordingly, if necessary.

If the communication lines to the NAP are not available, the message will be "Collection Reports System (CRS)/National Account Profile (NAP) ACCESS NOT AVAILABLE" .

If the NAP is not available, the message will be "NATIONAL ENTITY FILE NOT AVAILABLE" .

Generalized Unpostable Framework (GUF) users are authorized to access only those accounts required to accomplish their official duties. GUF users must not access their own or their spouse's account, the account of a friend, relative or coworker, or any account in which they have a personal financial interest. Management should only assign GUF CCs to employees authorized to process unpostable records.

GUF is accessed by the command codes UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES, and UPREV through IDRS.

Case Assignment - All unpostable cases will be assigned on GUF in the following manner:

For IDRS purposes the campus sites will have Office Identifiers. These numbers are NOT replacing the two-digit File Location Codes (FLC's) in the DLN.

SP employees may encounter some accounts that are blocked on IDRS and can be identified by an IDRS security violation message: "Unauthorized Access to this Account."

As of January 1, 2008, all credits/payments will be assigned a Trace Identification (ID) Number for tracking purposes. The Custodial Detail Database (CDDB) was established with the Electronic Federal Tax Payment System (EFTPS) payments January 1, 2006. The CDDB tracks all payments that comprise a Deposit Ticket, balances the transactions against the Deposit Ticket totals, and is entered in the Interim Revenue Accounting Control System (IRACS) General Ledger. The Trace ID Number will allow all credits/payments to be identified and added to the CDDB.

The format for the Trace ID is provided in the following table (first 14 characters):

All payment deposits are assigned a 20-digit Trace ID number. When tax examiners process unpostable payment transactions, the Trace ID number may not be transcribed on the payment document. Unpostables are required to ensure that the Trace ID number is on all payments that are nullified using URC 1 or sent to Rejects using URC 8. This includes any payments that must be renumbered or reprocessed. Tax Examiners must identify the Trace ID number and enter it on the document, even if a dummy document is created. The Trace ID will not be viewable or correctable in GUF. The Trace ID number for a payment can be identified on IDRS using CC TXMOD. If the payment is from ISRP Remittance Processing System (RPS) or Lockbox, use RTR to find the Trace ID. Once the Trace ID is identified, it must be transcribed onto the payment document.

Campus (and Area Office) personnel use Generalized Unpostable Framework (GUF) command code (CC) UPASG, UPBAT, UPDIS, UPCAS, UPRES, UPREV and UPTIN to assign, research, review and correct (individual and batch closures) unpostable cases. See IRM 3.12.32.18, General Information for GUF Command Code Screen Formats, for more details.

The following table provides the unpostable resolution code (URC) validity checks for CC UPRES and the valid Master Files:

CC UPBAT - In addition to CC UPRES for individual closings, CC UPBAT is used for multiple cases resolved with the same URC. However, the CC UPBAT URC actions are not directly updated. They are generated into each resolved record during the end-of-day (EOD) processing. Each closed batch record has the generated URC applied to the appropriate record via a definer code if all the command code validity checks are met, and the command code request does not meet the unpostable reject criteria.

Unpostables are identified on IDRS by pending transaction identification codes. They indicate the status of the posting of the transaction on IDRS. The table below provides a description of the pending transaction codes.

The Modernized e-File (MeF) system receives and processes electronically filed returns through the internet. Business tax return data is transmitted for MeF electronically using the Application to Application method or the Internet Filing Application method.

IRM 3.42.4, IRS e-file for Business Tax Returns, provides a consolidated source for researching information regarding the Business e-file Programs and E-Payment Product Options. See IRM 3.42.4, for a complete list of BMF forms and documents.

MeF provides for real time processing of acknowledgements, streamlined error detection, standardization of business rules and requirements across form types, the capability to attach PDF files, and the capability for IRS employees to view MeF return data through the Return Request and Display (RRD) Subsystem in the Employee User Portal (EUP). It also generates reports for management through the Business Objects Enterprise (BOE) reports system.

Tax examiners (TEs) should use the EUP system to review forms as needed when resolving an unpostable with an electronically filed return.

Form 8749 (or a locally developed form) must be used when a case is physically routed to another area.

All appropriate research should be performed and attached before routing the case. Ensure the appropriate boxes are completed to explain the process. Figure 3.12.179-2 and following table.

Figure 3.12.179-2

Routing Slip - URC 2 & 8TITLE: Figure 3.12.179-2, Form 8749 (Rev. 5-93) Unpostable Action and Routing Slip. Summary: This figure shows how to complete the appropriate boxes on an Unpostable action and routing slip for URC 2 & 8. The relevant boxes to fill out are labeled with reference numbers (in a black circle) and listed below. 1. From check boxes (1) Mark unpostables box4. Employee number (2) Your employee #5. Cycle sequence number (3) Unpostable Sequence #6. Unpostable Code (4) Unpostable Code7. Reason code (5) Unpostable Reason Code8. Master File check boxes (6) Mark appropriate Master File box9. Unpostable resolution code (UPRES/URC) check boxes (7) Mark appropriate box left of 2 or 810. Closure date (8) Indicate date case was closed on UPRES14. Route to check boxes (9) Employee # to whom the unpostable is being routed15. Reason case voided or rejected (10) Stop/Drop Point # where employee is located and reason unpostable is being voided back.16. Action to be Taken check boxes (11) Mark appropriate correction box17. Remarks box (12) Additional information, if necessary, for Rejects to close caseNote after figure, It is not necessary to complete items 11-12 for URC 2 closures.

Please click here for the text description of the image.

The following provides the URC validity checks for CC UPRES, including the valid Master Files:

To use CC UPCAS, input CC UPDIS with an Unpostable cycle sequence, which brings up the UPRES screen. Overlay UPRES with CC UPCAS with the appropriate definer and definer modifier, if applicable.

In addition to CC UPRES for individual closings, CC UPBAT is used for multiple cases being resolved with the same URC. However, the CC UPBAT URC actions are not directly updated. They are generated into each resolved record during end-of-day (EOD) processing. Each closed batch record has the generated URC applied to the record via a definer code if all the cc validity checks are met.

The GUF system automatically closes some Unpostable conditions without any tax examiner involvement. These cases are systemically sent to the initiator. Due to systemic limitations of GUF and Master File, some cases may still need to be corrected manually. For a complete list of automatic closures, see IRM 3.12.32.13, Automatic Closures by the GUF System.

The Unpostables unit must ensure that cases that do not auto-close are not overlooked.

Third Requests— Initiate a third request after 15 work days (21 calendar days) when a return or document cannot be located in Files after the second request, or if the document is charged-out to another area.

If the unpostable document is canceled (excluding tax returns, payments, or extensions),

If the unpostable document (excluding tax returns, payments, or extensions) is to be canceled and is NOT attached behind the return or routed to the initiator, destroy the document.

Before correcting, ensure the DLN on the document matches the DLN of the unpostable. If the document contains two DLN's and both appear to be "live" (not crossed through or canceled), contact your supervisor or lead to research.

This subsection contains information on the Restructuring and Reform Act of 1998, Section 3705, which provides identification requirements for all IRS employees when communicating with taxpayers and/or their representatives on tax-related matters.

IRS employees are required to give their name and unique identification number during taxpayer telephone, face-to-face, and written contact. In addition, a telephone number is required on all taxpayer correspondence. Refer to IRM 10.5.7, Use of Pseudonyms by IRS Employees, for additional information.

All IRS employees who communicate, by telephone, correspondence, or face to face, with taxpayers, or their personal representatives, on tax-related matters, are required to provide the following information:

IRC 6103(a) contains requirements for both protecting and disclosing confidential tax returns and return information. Before disclosing any tax information, Tax Examiners must verify they are speaking to the taxpayer or an authorized representative. For more information on authentication procedures, see IRM 21.1.3.2.3, Required Taxpayer Authentication.

When making an outgoing call to taxpayers for additional information and you reach an answering machine or voice mail, you should provide the same information as indicated above but do not provide specific tax related information.

When a taxpayer requests to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry, using established procedures, to manager.

The Taxpayer Advocate Service (TAS) assists taxpayers who are experiencing economic burdens and/or unreasonable delays in resolving tax problems with the IRS. See IRM 3.12.179.3, Taxpayer Advocate Service (TAS) Cases, for more information on determining whether TAS case criteria applies and when to prepare and route Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) to TAS.

When contact is necessary to resolve an unpostable condition, use one of the following methods.

On an expedited basis, the Unpostable function should resolve any correspondence received from any other campus or Area Office.

The service should make every effort to locate good addresses for those taxpayers whose Master File addresses are undeliverable.

Research CC ENMOD for a pending or posted address change. If found, correct and re-mail the letter.

Research undeliverable letters for operational errors, incomplete or incorrect name and erroneous or extraneous data. If found, correct and re-mail the letter.

Check other schedules or documents attached to the return to see if there are other addresses at which the taxpayer may be contacted. If there are, reissue correspondence.

IRS employees may change an address using information received from the USPS, National Change of Address (NCOA) database. An address obtained from the NCOA database becomes the taxpayer's last known address unless the taxpayer provides clear and concise notification of a change of address or the Service properly processes a taxpayer's federal income tax return with a different address. Upon receipt of any undelivered mail piece with an affixed USPS yellow label, an IRS office should examine, research, and update the address as follows:

Private Mailbox (PMB) companies may be used as substitutes for the U.S. Post Office.

When completing address information for Private Mailboxes, the PMB information must be entered using the correct standard format. Do not include the "#pound sign" when entering an address or a change of address. An example of a correctly entered address is as follows:
Gray Hawk Company
Mailbox Etc.
1111 Avocado Road PMB 111
Anytown, USA 11111

For purposes of computing interest on overpayments on returns and the 45 day interest-free period, a return must be a "processable" form. For purposes of the rules for interest on overpayments, a return is in "processable" form if:

The test for whether a return is "processable" is set forth in the IRC 6611(g). An unprocessable return may start the period of limitations on assessment; however, that period will not start if the return is "invalid" (the test for invalidity has been developed through case law).

A Received Date is required on returns that are:

Thoroughly research the available documentation and IDRS because a change to the received date may generate a notice to the taxpayer.

Determine the received date in the following priority:

For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting; IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates; and/or Document 6209.

Master File has the capability to maintain and display two dates. The first date is the "Return Received Date" and the second is the "Return Processable Date (RPD)" . The "Return received date" will be used to determine the statute dates while Return "Processable Date" will be used to compute interest on overpayments.

The following unique campus addresses and Zip Codes will be used when the taxpayer has provided no address and we cannot obtain one for IMF processing:

Generally, payments will not offset to or from another tax module if both modules are settled, except the ESTIMATED TAX(ES) Credit offset.

When a payment is identified for a particular tax module and it has unposted from another module, post the payment to the proper module, rather than letting the computer offset the payment.

When it is identified that a payment is intended for multiple tax periods split the payment per taxpayer intent. If payment was posted to incorrect module post to the correct module.

When attempting to post a payment to a tax module which contains a TC 760, Substantiated Credit, for the same amount and approximately the same date—

When applying an offset or credit to any MFT 35 File Source 1, check the Designated Payment Code (DPC) of the original credit generating the transferred credit. If it has a lien or levy enforcement DPC, do not apply to this module.

Lien or Levy payments cannot be applied to MFT 35, these payments can be identified by the DPC. There are several types of lien and levy payments:

A credit transfer is used to transfer money from one tax module to another or between Master Files. Each has unique Doc Codes and only certain transaction codes are valid for a specific Doc Code.

When transferring a payment to a settled module, use unpostable bypass indicator 0 or 1 to prevent an unpostable UPC 198 or UPC 305.

Transfer vouchers are identifiable by their Doc Codes; 24, 34, 48, and 58.

Figure 3.12.179-6

Form 2424, Account Adjustment VoucherTitle: Figure 3.12.179-6 Form 2424 (Rev. 2-2007) Account Adjustment Voucher. Summary: The Form 2424 shows a completed voucher used to transfer money from one tax module to another between Master files accounts. The Debit TC is 820 and the Credit TC is 700. The Form has two copies, Part 1, Credit Copy, pink and Part Two, Debit Copy, blue.

Please click here for the text description of the image.

Figure 3.12.179-7

Credit Transfer for Doc Code 34Title: Figure 3.12.179-7 Doc Code 34 transfer action display input via IDRS with generated FRM34. Summary: The figure shows an IDRS transaction record input for a Doc Code 34 credit transfer between modules within a Master File. The primary TC is 672 and there is no secondary TC. A FRM34 that generates is displayed, showing the TC 672 debit transfer. The IDRS transaction record (EOD 18-21) generates as a source document once the transaction is submitted for End of Day processing.

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Figure 3.12.179-8

Credit Transfer for DRT48Title: Figure 3.12.179-8 Doc Code 48 transfer action display input via IDRS with generated DRT48. Summary: The figure shows an IDRS transaction record input for Doc Code 48 transfer. The primary TC is 830 and there is no secondary TC. The generated DRT48 screen is displayed showing a TC 830 debit for 530.17 and a TC 710 Credit for 530.17-. The remarks section states Credit Forward. The IDRS transaction record (EOD 18-21) generates as a source document once the transaction is submitted for End of Day processing.

Please click here for the text description of the image.

Figure 3.12.179-9

Form 3809, Miscellaneous Adjustment VoucherTitle: Figure 3.12.179-9 Form 3809 (Rev. 8-2012) Miscellaneous Adjustment Voucher. Summary: This figure shows a completed Form 3809 for Doc Code 58 transfers for special accounts. The forms contains a TC 820 for $530.17 in the debit section. The credit section indicates to be applied to Excess Collections. The explanation contains the purpose of the preparation for the duplicate document.

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Figure 3.12.179-10

Form 8758, Excess Collections File AdditionTitle: Figure 3.12.179-10 Form 8758 (Rev. 05-2011) Excess Collections File Addition. Summary: This figure shows a completed Form 8758 to request transfer non-revenue receipts to Excess Collections. The forms shows a request to transfer $150.00 because the posted payment does not belong to the taxpayer and the correct taxpayer or account is not located.

Please click here for the text description of the image.

Form 8758, Excess Collections File Addition Used to transfer non-revenue receipts to Excess Collections. Figure 3.12.179-10. For more information on the preparation and use of Form 8758 see IRM 3.17.220.2.2.1, Preparation of Form 8758.

Form 8765, IDRS Control File Credit Application—requests a transfer from Excess Collections or Unidentified to a taxpayer's account. For information on the preparation and use of Form 8765, see IRM 3.17.220.2.12, Applying Amounts From the XSF. .

See IRM 3.17.220, Excess Collections File, for additional information on the preparation and use of these forms.

During their normal work, Unpostable examiners may detect erroneous refunds. Erroneous refunds are most likely to occur with the following IMF UPC's:

Most of these unpostable documents will be the debit side of the doc codes 24, 48, or 58 that did not post because the credit refunded or offset to another module.

With accelerated refund processing for IMF, under certain conditions, accounts will not reflect the refund transaction (TC 846) upon settlement of the account. IMF will systemically apply a refund hold for a specified period before systemically generating the refund transaction (TC 846).

If the credit side of the transfer has posted, and an erroneous refund is in the process of being issued, but a TC 846 is not posted:

Ensure the transaction is being directed to the correct Master File, MFT, and Taxpayer.

If the credit part of the transfer has posted and refunded:

The Unpostable function will attempt to correct all unposted TC 740/841 prior to sending to Refund Inquiry.

If unable to resolve, route to the Refund Inquiry function for assistance. See IRM 21.4.6:

For a list of Refund Inquiry Unit Fax numbers, refer to http://serp.enterprise.irs.gov/databases/who-where.dr/refund-inquiry-unit-addresses.html.

The Refund Inquiry function will research and enter the correct information on UPCAS Z.

The Unpostable function will close the case within five work days after receiving the correct information.

If the Unpostable TC 740/841 is a money discrepancy, take the following action. For more information, see IRM 3.17.79, Accounting Refund Transactions).

This subsection contains instructions on how to correct unpostable conditions involving Excess Collections, Dishonored Checks or Unidentified Remittance if the corrective action can be identified.

This involves various UPC's such as 168, 189, and 194 involving the correction of credit modules.

Complete all research on the case.

Installment Agreement (IA) User Fees are systemically transferred by the IA user fee transfer program. The transfer consists of a debit TC 672 from the tax module (MFT 30) to post as a credit TC 694 with a secondary TC 360 to the User Fee Module, MFT 55 (IMF) or MFT 13 (BMF). For more information on IA User Fees see IRM 5.19.1.6.4, Installment Agreement (IA). See IRM 3.12.10.3.3, Revenue Receipts, Installment User Fee for additional information on valid Designated Payment Codes and User Fee amounts.

Use the table below to determine the valid DPCs and money amounts.

If the user fee unposts on the MFT 55 account, correct as follows:

User Fee reversals - TC 662 or TC 672 may unpost due to a dishonored check (TC 661 or TC 671) or an automated attempt to transfer a duplicate user fee.

If TC 695 is unpostable without the secondary TC 361, URC 2 to originator with remarks “Input TC 361 for TC 695 to post”.

IMF TC 150 transactions have an RPS indicator of "S" The most common unpostable code is 140, but Category Y1 includes other codes where the unpostable condition is unrelated to the remittance. Refer to IRM 3.12.32.5.17.1 for additional information on Category Y-1 criteria.

IMF TC 150 transactions without an RPS indicator of "S" , where the module contains an unreversed RPS TC 610 with Doc Code 19, 70, or 76. Unpostable code is 140, reason code 2.

IMF current-year TC 610 transactions (payment with return) that are not Doc Codes 24, 34, 45, 48, 58, or 87. Unpostable code is 151.

Category Y2 consists of prior list year RPS TC 610 and/or TC 150 transactions, or

RPS TC 610 and/or TC 150 transactions with an unpostable classification code of "Corrected" or "Reclassified" (Repeats).

Refer to IRM 3.12.32.5.17 for additional information on Category Y2.

Erroneous TDI's (Form TDI 14) can be generated when

When closing a TC 150 with URC 8, and the TC 150 will not be reinput to the same tax module within six weeks after the Return Due Date (RDD), input a TC 599 with closing code 017 (current processing year returns through mid-May) or 018 (for all others).

When a TDI satisfying transaction other than a TC 150 or TC 610 attempts to post to the wrong tax module or account and the unpostable will not be corrected within six weeks after the RDD, expedite the resolution by the end of the next week.

To prevent erroneous TDI's, input a TC 599 with the appropriate closing code if the TC 150 cannot be posted timely to stop the TDI.

All Unpostables - initiated TC 59X’s must be input through IDRS.

Do not change posted entity data based solely on the information found on the unpostable TC 59X.

CC STAUP can update certain Integrated Data Retrieval System (IDRS) statuses real-time or request that a specific status and notice be issued during a weekly update. See IRM 3.14.1, IMF Notice Review, for notice requests.

Input of CC STAUP causes a history item to be generated in the Action History Section of the tax module. The history item contains the current date, the terminal operator employee number, the Action History Source Code and the activity code "STAUP nnnn" . (nnnn = the status requested plus the number of cycles delay, if present, requested by the terminal operator).

Input of CC STAUP also causes the tax module’s IDRS status to update real-time. The module updates to either status 48, status 50, or the status requested as appropriate.

CC TXMOD is the prerequisite for CC STAUP with the definer "S" for single line input. The TIN must be present on line 1 for proper processing of the account.

Cases being transferred out of unpostable's inventory must have at least four weeks remaining on the notice delay transaction. If not, input a new STAUP or TC 470. Indicate on routing slip a new STAUP or TC 470 was input and the number of cycles the notice was delayed.

See IRM 2.4.28, Command Codes STAUP, STATI, and STATB, for additional information.

General— Frequently, a transaction cannot post unless a specific type of related transaction posts first. Most transactions require the establishment of an account or tax module as a prerequisite. Many unpostables result from improper cycling. All Doc Code 47 (Exam) and most Doc Code 54 (DP) adjustment transactions require a return be posted. Reversal transactions require the related original transaction to be present. After all transactions have posted, analyses are made, new status and freeze conditions are set (released or changed), and notices, TDA's and refunds are issued. The length of time needed to post a transaction varies.

Tax examiners have the ability to cycle delay transactions input via IDRS using a Posting Delay Code (PDC).

The following IDRS command codes have the posting delay capability:

All payment deposits are assigned a 20-digit Trace ID number. At the time a tax examiner begins to process an unpostable payment transaction, the Trace ID number may not yet have been transcribed on the payment document.

Unpostables will be required to ensure that the Trace ID number is on all payments that are nullified using URC 1 or sent to Rejects using URC 8. This includes any payments that have to be renumbered or reprocessed. The Tax Examiners (TE's) will have to identify the Trace ID number and notate it on the document, even if a dummy document is created. The Trace ID will not be viewable or correctable in GUF.

The Trace ID number for a payment can be identified on IDRS using CC TXMOD. If the payment is from ISRP, RPS or Lockbox, use RTR to find the Trace ID. Once the Trace ID is identified, it must be transcribed onto the payment document.

If an assigned record is determined to have CI, Statute or Bankruptcy issues, the case will be processed in accordance with the following categories:

Doc Code 47 or 54 exception: If URC 2 (void) is used and the transaction is remade by a prompt/quick assessment (TC 370) due to a Statute issue, the transaction will not repeat as a Statute unpostable.

The Data Master File (DM–1) is a data base of name controls and TIN’s received from three sources:

The DM–1 receives weekly updates from all three sources.

The DM–1 determines the validity of all transactions containing entity information. The DM–1 "directs" transactions to either the valid segment or the invalid segment of Master File. Transactions that obtain a proximal match on the IRS valid name control are given a validity digit of "0" (IMF). These transactions are directed to the valid segment of Master File for posting.

If an exact match cannot be found, IMF completes a proximal match on the taxpayer's name control and TIN.

The IRS also receives weekly tapes from the Social Security Administration that contain all name controls and TIN's assigned or updated for a one week period. These are designated as 'NEW SSA NC' on the NAP file. This designation can be viewed via CC INOLE When a transaction finds a match on the DM-1 file with this indicator present, the transaction will post to the invalid side.

If no match is obtained, the transaction is directed to the invalid segment of the Master File and is assigned a validity indicator of "1."

The Master File is structured in two segments—valid and invalid for taxpayers who file using SSN's only.

The validity of an SSN/name control combination is determined by finding a matching SSN/name control combination on the Data Master One File (DM-1) or the Accretion File

Output from the Master File that contains an asterisk (*) or "W" immediately following the SSN indicates the account is invalid for the SSN/name control combination. A validity digit of "1" (IMF) is given. These transactions are directed to the invalid segment of the Master File.

The most common reasons for an invalid account number are:

Master File is segmented according to SSN validity.

If an exact match is not found in the TIN validation process, IMF attempts to find a proximal match on the DM-1 or on the accretion file.

See IRM 3.13.5, Individual Master File (IMF) Account Numbers, for information on the issuance of Individual Taxpayer Identification Numbers (ITIN's).

Command Code MFTRA with Request Type "U" is used to request SSA NUMIDENT transcripts. The NUMIDENT entity information is direct from SSA transcripts. The requested NUMIDENT transcript will be returned in approximately one to three days. The SSA provided information includes:

GUF has implemented validity checks to prevent tax return SSN's out of the range of numbers issued by SSA from attempting to post to the Master File.

If the taxpayer has an SSN out of the valid range, GUF will not allow the unpostable to be resolved. It will print "SSN NOT GREATER THAN 001-01-0000" or "FIRST THREE DIGITS OF SSN ARE INVALID" .

When the primary Social Security Number (PSSN) is out of the valid range, perform all "in-house" research. If a valid SSN, invalid SSN, or Internal Revenue Service Number (IRSN) is found, correct the unpostable record with URC 6. If no other number is found, request assignment of an IRSN. The temporary number must be established on the Master File with a TC 000. Close the Unpostable with URC 6 or 8 . If the return was processed as "LONG ENTITY," TC 000 is not necessary.

Entity Control will send a letter to the taxpayer notifying him/her of the assignment of a temporary IRSN. They will explain to the taxpayer that the number shown on return is out of the range of numbers assigned by SSA. They will instruct the taxpayer to go to SSA to obtain verification of the number used on the return.

Under no circumstances will a taxpayer assigned an IRSN receive a personal exemption and/or EIC. Send a 685C letter informing the taxpayer of the assignment of the IRSN, and URC 8 to Rejects. Request Rejects to remove the taxpayer's personal exemption and/or EIC claimed.

Any errors observed in the taxpayer's entity information indicated from a return (TC 150) or taxpayer correspondence must be corrected.

If a TC 150 for the same tax period is already posted to both the invalid and valid taxpayer's account, do not input a transaction that will cause the two accounts to merge (i.e., TC 011/013/040/041).

Entity Code—A code indicating whether a transaction carries full or abbreviated entity data. The entity code is present with the following IMF unpostable and transaction codes. otherwise the field is blank:

The following is a list of entity codes and their meanings:

Filing Status Codes—Identifies the taxpayer's marital and family situation on Forms 1040, Form 1040-SR, 1040-A and Form 1040-EZ. It is an important factor in determining whether the return is required to be filed, the amount of standard deduction, and the correct tax.

The meaning of Filing Status Codes (FSC) are as follows:

Establishing an account

Correcting name on Unpostable record

Correcting name on IMF residing on VALID segment:

If the transaction is intended for a BMF account, close with URC 8 with instructions to renumber the document. Exception: UPC's 198 and 305 can be closed to post to an IMF account and transferred at the same time to a BMF account. Input TC 570 to prevent an erroneous refund.

Correcting the SSN on Unpostable record.

TC 000 is used to establish a taxpayer's account on the applicable Master File.

The following information is necessary to establish the taxpayer using the CC INCHG screen:

Do not attempt to input a TC 000 for an ITIN or an IRSN, as this creates repeat or additional unpostables.

When entering a name change (TC 013) to update/correct a joint return filer, it is important to ensure the joint names are in the proper format for the issuance of notices and overpayments.

If joint filers require a notice, two notices are issued (one to the primary taxpayer and another to the secondary taxpayer).

Although Form 1040, Form 1040-SR consists of two lines for entering joint names, Master File is limited to ONLY one line for the "Primary Name Line" .

Master File's Name Line field must never exceed 35 characters/spaces. It is imperative that the name line information is contained in the first name line ONLY. When space allows, all available information, including middle initial(s), will be entered.

Examples of properly input name changes are shown below. Bold print indicates the primary name control.

The above information CORRECTLY entered will display on CC ENMOD and generate two separate notices:

If the primary and secondary names exceed 35 characters/spaces, see IRM 3.13.5.118.5, or http://core.publish.no.irs.gov/docs/pdf/d7071--2016-01-00.pdf, Name Control Job Aid for Individual Master File Taxpayers, for additional information.

Generally, TC 040 is used when a taxpayer has a name change but has not updated with SSA to display the new name control. The taxpayer will be on the valid side with an invalid SSA Name Control, and will need to be moved to the invalid side with TC 040.

TC 040 is used to change the name and/or TIN of the taxpayer's account that resides on the valid segment of IMF. If the name control input does not match the DM-1, TC 040 will move the account to the invalid side.

TC 041 is used to change the name and/or TIN of the taxpayer's account that resides on the invalid segment of IMF. Often used to move new ITIN's to the valid segment before the DM-1 quarterly merge.

TC 040 and TC 041 do not go through DM-1 validation processes. These TC's will not be used unless IMF established the taxpayer incorrectly; or the taxpayer provides "proof" of their identity through copies of marriage certificates, divorce decrees, legal documents showing a name change, etc.

Before entering a TC 040 or TC 041, thoroughly research the taxpayer's account using CC INOLES. If necessary, request a NUMIDENT for the taxpayer using MFTRA U to determine the most recent and all the SSA name controls reported by the taxpayer.

Information needed to complete a TC 040 or TC 041 is listed below:

When inputting TC 041, for the YEAR-NM-LINE> field in CC INCHG, use a later year where nothing is posted.

If the account is established on the valid segment with an invalid name control, input TC 040 to resequence the account. See IRM 3.12.179.18.9, URC 0 and cycle delay as needed.

If the unpostable case is addressing the invalid side and a TC 041 is being input to the unpostable TIN, close with URC 6 and add name control and name line and cycle delay as needed.

Individual Master File (IMF) completes a special process to establish the secondary taxpayer on Master File for all Married Filing Joint (FSC 2) accounts. In this automated process, IMF separates the secondary taxpayer from the primary taxpayer account and systemically establishes a separate account on Master File.

The accounts systemically established by IMF will display transaction codes with a unique DLN of XX263-001-88888-X. The transaction code(s) may be a combination of TC 000, 01X, or 971 with Action Code (AC) 050 (to change the BOD code).

Unpostables 151, 152, 153, or 156 resulting from this systemic process require input of TC 040 (valid side) or TC 041 (invalid side) to bypass the NAP and correct the secondary taxpayer's name.

See IRM 3.13.5, for additional information.

If the return has filing status 5 checked, and the spouse's date of death is more than two years prior to tax year of return and

If the return has a filing status other than 2, has two names on name line and decedent's date of death is within tax period, (children not a factor), URC 8 to change the filing status to 2.

If the return has filing status 5 checked, and there is only one name on the name line, and the spouse's date of death is within the tax period covered by the return, URC 8 to change to FSC 2, and include DECD in the name line.

"DECD" must be entered after the taxpayer's last name (after any existing suffix).

Always enter a second name line, if available. On overpaid returns, a second name line is mandatory. The refund is issued to the person(s) whose name(s) is shown on the second name line. If the proper payee cannot be determined, correspond using a 12C letter to the "Estate of ..." .

Include the suffix for any name indicating a court-appointed personal representative, such as: Administrator, Executor, Administrative Exec., Trustee, etc.

The second name line must not include any suffixes such as "surviving spouse" , "mother" , "father " , "daughter" , "son " , etc.

For more specific procedures, refer to IRM 3.11.3, Individual Income Tax Returns, and IRM 3.12.3, Individual Income Tax Returns.

IRA MFT 29 accounts will be established when Form 5329 is received with Form 1040, Form 1040-SR.

In addition, IRA transactions may be input to post to established MFT 29 accounts. These transactions include entity changes, adjustments, audit transactions, etc. IRA transactions will carry a Tax Class (3rd digit of the DLN) of zero.

IRA Filing History Codes

Effective January 2006, the input of a TC 971 AC 144 on an MFT 30 module generates a corresponding MFT 29 module for Form 5329.

See IRM 21.6.5, Individual Retirement Arrangements (IRA), Coverdell Education Savings Accounts (ESA), Archer Medical Savings Accounts (MSA) and Health Savings Accounts (HSA), within IRM 21.6.5.4.11.4, Processing Form 5329 With TC 971 AC 144, for further instructions.

International returns are assigned either Filing Location Code (FLC) 20 or 21 for AUSPC.

FLC 20 returns include:

File Location Code 21 returns include:

INTL IMF cases are worked in AUSPC only.

All international returns received at IRS offices other than AUSPC will be transshipped to AUSPC on Form 3210, Document Transmittal. Related payments are to be deposited at point of receipt. Refer to IRM 10.5.1.6.7.2 and IRM 10.5.1.6.7.3, Privacy and Information Protection, Privacy Policy on mail and shipping information. All transshipped returns received by AUSPC must have a received date stamp.

The following is a list of international returns requiring transshipment to AUSPC for processing:

Examine Form 1040, Form 1040-SR,Form 1040-NR, Form 1040-NR-EZ, Form 2555, Form 2555-EZ, Form W-2 or other documents to determine the taxpayer's status. A taxpayer's status may be U.S. Citizen, U.S. Resident Alien or Nonresident Alien.

For more information on determining the status of an international filer, refer to Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Pub. 519, U.S. Tax Guide for Aliens.

Amended returns must be filed with the jurisdiction which processed the original return.

Estimated Tax Payments must be made to the jurisdiction which will process the tax return.

U.S. citizens who have income from the Virgin Islands but are not bona fide residents of the Virgin Islands file their income tax returns with both the U.S. and the Virgin Islands government.

A dual-status tax return is filed by a taxpayer who is a resident alien and a nonresident alien within the same tax year. This usually occurs in the year the alien arrives in or departs from the United States. However, a resident alien who leaves the U.S. temporarily and does not abandon lawful permanent residence (green card), retains resident alien status while abroad. The taxpayer is not considered dual status and must report worldwide income.

The taxpayer is permitted to use Form 1040-NR as a work sheet to compute tax for the period of non-residence or Form 1040, Form 1040-SR as a work sheet to compute tax for the period of residence. If necessary, enter the data from worksheet to perfect the return.

Self-employed persons residing in Puerto Rico compute and report their Social Security Self Employment tax on Form 1040-PR.

Self-employed persons residing in the Virgin Islands, American Samoa, Northern Mariana Islands and Guam compute and report their Social Security Self-Employment Tax on Form 1040-SS.

A signature is required on all Form 1040-PR and Form 1040-SS.

Form 1040-NR and Form 1040-NR-EZ are filed by:

All Forms 1040-NR and Forms 1040-NR-EZ are processed only in AUSPC under FLC 20.

Income to be reported on Form 1040-NR is classified as either effectively connected with a U.S. trade or business or not effectively connected with a U.S. trade or business.

Income Effectively Connected with a U.S. Trade or Business is reported on Form 1040-NR, Page 1, Lines 1a -15.

Income Not Effectively Connected With a U.S. Trade or Business is reported on Form 1040-NR, Page 4.

Income reported on Form 1040-NR-EZ is classified as effectively connected income ONLY:

CONDITION RC 1 Unpost TC 500 with a closing code (cc) 53, 55, 57 or 59 for any of the following conditions:

Resolution UPC 133 Reason Code 1 GUF Auto-Close URC 2 to Originator.

CONDITION RC 0 This condition occurs when a TC 150 contains CCC A, F, or 9, FSC 2, and the literal DECD is not present in the name line.

Resolution UPC 136 Reason Code 0: Research using the return, CC UPRES, INOLE and TRDBV to determine if CCC 9 or F is correct.

If the return must not contain a CCC A, 9 or F, URC 8 and request removal of CCC.