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. Individual Master File (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 for 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. Servicewide Policies and Authorities, Servicewide Policy Statements.

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: IRM content must be accurate and reliable to provide consistent administration of the tax laws. To maintain the accuracy of the IRM, the program owner must review the IRM at least annually for procedural, operational and editorial changes.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3 , When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

Local procedures or instructions are formally issued and communicated through memorandum to employees in a specific office or campus. See IRM 1.11.2.2.1.1, Local Procedures, for guidance.

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.

The following IRMs and resources assist in performing the work as outlined in this IRM

The objective of the Unpostable function is to maintain the integrity of the MF by identifying and resolving transactions that are not compatible with existing MF programming or normal Submission Processing campus operating procedures. When transactions cannot post to the MF, SP employees will use IRM procedures to resolve the unpostable condition. Unpostables are accessed using the Generalized Unpostable Framework (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. Follow proper processing and posting to minimize adverse taxpayer contact.

Integrated Automation Technologies (IAT) tools are designed to increase efficiency and accuracy of regular processing. IAT tools simplify research, reduce keystrokes, eliminate repetitive typing, and increase the accuracy of regular work processes. The use of an IAT tool is mandatory. See 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:

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:

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) will contain 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) CC IMFOL and CC 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 must verify 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 CC STAUP. For CC STAUP notice delay guidelines see IRM 3.12.179.14, Taxpayer Delinquency Investigation (TDI) and Notice Delay Information.

Use the guidelines in IRM 3.12.179.10.2, Taxpayer Contact to resolve Unpostables, for Additional Information, to verify 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, do proper research and input credit transfers to the correct Taxpayer Identification Number (TIN), r tax period, or both. 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 will 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). Entity Unpostables will review these 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 GUF 51-43) and Summaries (GUF 07-43 and GUF 51-44) generate for TC 150, TC 295 and TC 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 on a refund.

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. Work cases and order documents 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 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 (CRD), 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 CRD. Coordinate directly with the Reject Function on any cases for which a manual refund may be needed, if the CRD 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."

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. 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. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

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.

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(1)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights.

Refer taxpayers to the Taxpayer Advocate Service (TAS) when the contact meets TAS criteria and you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer requests TAS assistance. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order), and forward it to TAS in accordance with your local procedures. Check the TAS box on Accounts Management System (AMS), if applicable.

Refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information. Provide the taxpayer with the number for the NTA toll-free case intake line, 877-777-4778 or TTY/TDD 800-829-4059. Advised taxpayer that TAS is available if the taxpayer is not satisfied with the service received.

An IRS employee must make a referral to a TAS office if the employee receives a taxpayer contact and cannot initiate action to resolve the inquiry or provide the relief requested. A taxpayer does not have to specifically request TAS for TAS to provide assistance. IRS employees advise taxpayers of the option to seek TAS assistance when appropriate. TAS requests documentation from the taxpayer if it is needed to support the requested relief or required by the IRM.

DO NOT refer the following cases to TAS:

TAS Case Criteria - Any taxpayer contact that meets any of the criteria listed below forward to the local Taxpayer Advocate for special handling using a Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order). The following is a list of situations when to refer if any of the criteria apply:

This subsection contains information on the Restructuring and Reform Act of 1998, Section 3705(a), and provides identification requirements for all IRS employees working tax related matters.

It is mandatory for all IRS employees to provide their name and unique identification number during taxpayer telephone, face to face, or 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 must 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, make every attempt to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee will refer the inquiry, using established procedures, to manager.

The Taxpayer Advocate Service (TAS) assists taxpayers who are experiencing economic burdens and unreasonable delays in resolving tax problems with the IRS. See IRM 3.13.122.3, Taxpayer Advocate Service, 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 will resolve any correspondence received from any other campus or Area Office on an open unpostable.

Any local letters will inform the taxpayer to include all necessary signatures, identifying numbers, schedules or attachments.

If there is an indication that previous correspondence issued for the same item (e.g., missing signature).

When the notation "Substitute for Return Prepared by IRS" appears.

The return is prepared under the authority of Section 6020(b) Prompt Assessment.

The return is an Examination Adjustment case.

An original signature, made by the taxpayer, is required below the jurat (perjury statement) in the “Sign Here” area of the return. If the signature is missing, return to the taxpayer unless the return meets one of the following exceptions. Continue processing without an original signature if the return meets any of the following conditions:

If the return does not meet one of the exceptions, stop processing. Check for evidence that return previously returned to taxpayer for missing signature.

If there is evidence of previous correspondence for a missing signature, close with URC 8 to Rejects to void the return as it is not a legal document without a signature.

If there is no indication of previous correspondence, correspond with the taxpayer. Use Letter 12C and suspend the case 30 days.

If the taxpayer responds with signature,

If taxpayer’s response directs a change in the Filing Status Code (FSC),

If request for signature results in “No Reply” - the signature is not provided by the taxpayer or response is not received within 30 days,

You can accept faxed signatures for IMF returns if speaking to the taxpayer or authorized representative after taking the following steps:

For all returns - When correspondence (signature) is received in the unpostable area, take action to correct the Return Processable Date (RPD) to prevent interest payment on the refund. This may require releasing the Unpostables to Rejects with URC 8.

A taxpayer may use a Private Mailbox (PMB) company rather than the U.S. Post Office.

When completing address information for Private Mailboxes, the PMB information is 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:
John Poppy Company
Mailbox Etc.
1111 Beagle Road PMB 111
Anytown, USA, 11111

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

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

A Received Date is required on the following returns:

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 Document 6209.

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

If a timely filed return is being processed, and the Julian Date is 155 or later, enter the RDD as the RRD.

If a late reply (correspondence received after RDD) is received: Edit the RPD, also known as the CRD, in the lower left hand corner of the return or edit sheet. Determine the RPD in the following priority order:

Close with URC 8 to Rejects to enter the CRD

If a reply is not received, enter Computer Condition Code (CCC) "U" into the record. The CCC "U" suppresses credit interest from generating at Master File.

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:

A transaction frequently requires a related transaction to post first. Most transactions require the establishment of an account or tax module as a prerequisite. Many unpostables result from transactions not posting in the correct order. All Doc Code 47 (Exam) and most Doc Code 54 (Data Processing) Adjustment transactions require a posted tax return. Reversal transactions require the related original transaction is present. After all transactions have posted, analyses completed, new status and freeze conditions set, (released or changed) and notices, Taxpayer Delinquent Accounts (TDAs) and refunds etc. issued. The length of time needed to post a transaction varies.

The posting sequence for all Master Files is generally from lowest numbered TC to the highest numbered TC.

The input transaction must post before the corrected unpostable can post:

Resequencing can delay posting from one to eleven weeks (depending on Master File).

Transaction posting time depends on the input method as follows—

Cycle transaction if—

Do not cycle-in transactions if—

Cycling is calculated by using the current Martinsburg Computing Center (MCC) cycle plus the number of weeks it takes to post to Master File.

Tax examiners have the ability to cycle delay transactions input via IDRS using a posting delay code (PDC).

Tax examiners must input a PDC with transactions requiring a cycle delay.

The PDC does not post with the transaction or show on the IDRS pending transaction. The projected Martinsburg Computing Center (MCC) posting cycle on the IDRS "PN" (status pending) transaction extends to account for any PDC impact on the transaction.

The following IDRS CCs have the posting delay capability:

Pre-journalized Credit Transfer - Pre-journalized credit transfers with CC DRT24 and CC DRT48 (Document Codes 24 and 48).

Dual Debit/Credit Transfer - Dual Debit/Credit Transfers with CC FRM34 (Document Code 34).

Miscellaneous Transactions - Miscellaneous Transactions CC FRM77 (Document Codes 77 and 78).

Erroneous TDIs are generated when:

When nullifying (URC 1 or URC 8) a TC 150 or TC 610, and the TC 150 is not re-input to the same tax module within six weeks after the RDD, input a TC 599 with cc 17 or cc 18 unless otherwise directed.

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 is not corrected within six weeks after the RDD, expedite the resolution by the end of the next week.

To prevent erroneous TDIs, input a TC 599 with the appropriate cc if the TC 150 did not post timely to stop the TDI.

All Unpostable initiated TC 59X must input through IDRS using CC FRM49.

Use CC TDINQ to research any unpostable TC 59X. Do not change posted entity data based solely on the information found on the unpostable TC 59X.

CC STAUP can update certain 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 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 unpostables inventory must have at least four weeks remaining on the notice delay transaction. If not, input a new cycle delay with CC 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.

Generally, it is not necessary to input CC STAUP and TC 470 with no closing code to delay IDRS notice issuance on unpostable modules because:

If it is necessary to input CC STAUP or TC 470 to delay IDRS notice output, take the following action:

Payments Only—If the unpostable case has not been resolved seven cycles after receipt, review CC TXMOD, check for a prior CC STAUP or TC 470, a posted TC 150 and a balance due.

When inputting CC STAUP or TC 470, the number of cycles the IDRS notice is delayed will be kept at the minimum necessary. Excessive cycle delays can result in unnecessary penalty and interest accruals when the unpostable credit does not reduce the balance to zero.

If a TC 470 or CC STAUP is already on the module and will not expire before completion of the unpostable action, DO NOT re-input or update CC STAUP or TC 470.

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

Research entities via CC ENMOD, CC NAMES, CC NAMEI, CC FINDS, CC FINDE and CC TPIIP to determine differences in name, address, filing requirements, fiscal years’, or employment codes.

If research indicates differences between Master File and the unpostable condition:

If research DOES NOT provide sufficient information to correct the UPC, contact the taxpayer.

The DM–1 file is a database of name controls and associated TINs received from these four sources:

The DM–1 also receives weekly updates from the SSA and the IRS processing.

Programming determines the validity of the data on the DM–1. It "directs" transactions to either the valid or the invalid segment of the IMF.

The DM–1 file may display/record more than one NC for a TIN.

Entity can receive any unpostable for resolution of multiple TIN issues.

The IMF is structured into two segments "valid and invalid."

The valid and invalid segments contain the TIN and NC. The NC is the first four characters of the primary taxpayer's last name.

A TIN and NC validity is determined by finding a matching TIN/ and NC on the DM-1/SSA NC.

The most common reasons for invalid account numbers is a change in marital status, transcription/input errors by the IRS, or taxpayers using an incorrect TIN.

The same taxpayer can post on the valid and invalid segments of the Master File.

Two different taxpayers can post on Master File under the same TIN (valid and invalid segments).

If two or more TINs identified for the same entity, a consolidation is required.

Always research completely to determine if the TIN agrees with what is correct. When researching an IMF unpostable condition, search both the valid and invalid segments of the Master File.

If the unpostable TIN is incorrect and you cannot locate a valid TIN, assign the taxpayer a temporary IRSN. Edit the IRSN on the document and correct the unpostable accordingly. See IRM 3.13.122.10.4, Individual Taxpayer Identification Number (ITIN) or IRM 3.13.122.10.5, Internal Revenue Service Number.

An ITIN is issued by the IRS to individuals who are required, for U.S. tax purposes, to have a U.S. taxpayer identification number but do not have one and are not eligible to obtain a SSN. An ITIN is requested by the taxpayer on Form W-7, Application for IRS Individual Taxpayer Identification Number.

An ITIN is for federal tax purposes only. The format of the ITIN is the format of a SSN and begin with a “9”. The fourth and fifth numbers range from 70 - 99 (excluding 89 and 93).

Taxpayers with an ITIN are not eligible to receive the Earned Income Tax Credit (EITC). If ITIN is present on TC 150 and EITC is claimed, close with URC 8 to Rejects to remove EITC claimed.

A personal exemption is allowed with a valid ITIN.

If the Unpostable case is a TC 150 without claiming EITC, or any other TC, close the case with URC 6 to correct the TIN.

An IRSN is a temporary number assigned by the Entity Control Unit (ECU) for use when a TIN is needed to process the taxpayer return. An IRSN is used only as an internal identifying number if the taxpayer has not been assigned an SSN or ITIN. Assignment of an IRSN is only requested after complete research to locate a valid TIN is conducted.

IRSNs display in the same format as a regular SSN with a few exceptions.

An IRSN is not eligible to receive the EITC or claim a personal exemption.

If personal exemption or EITC is claimed and an IRSN is used on a TC 150, close with URC 8 to Rejects to remove the personal exemption(s) claimed and EITC.

If the Unpostable case is a TC 150 without claiming EITC or personal exemption, or any other TC, close the case with URC 6 to correct the TIN.

When accounts move from one TIN to another or from one segment to the other (i.e., invalid to valid), it is referred to as resequencing or merging. All parts of the Master File (i.e., CC INOLE, CC ENMOD, CC TXMOD, etc.) do not all merge at the same time.

These TCs apply to resequencing accounts:

Resequencing accounts is accomplished by automatic resequencing or the input of an entity transaction.

TC 011, TC 013, TC 040, or TC 041 is not input in the following situations. Resequencing results in a No Merge status.

IMF completes a special process to establish the secondary taxpayer on Master File for all married filing joint (FSC 2) accounts. With 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 displays transaction codes with a unique DLN of XX263-001-88888-X. The TC is a combination of TC 000, TC 01X or with AC 050 (to change the BOD code).

UPC 151, UPC 152, UPC 153, or UPC 156 created by this systemic process require input of TC 040 (valid side) or TC 041 (invalid side) to bypass the National Account Profile (NAP) and correct the secondary taxpayer's name.

The RTR system is a researchable database that contains remittance processing data and images from ISRP and Lockbox Bank processing sites. Payment transaction data is made available to access images of remittances and related documents to conduct on-line research to correct processing errors.

RTR provides three years of images online for immediate retrieval. Images more than three years old are retrieved through an online request, which is retrieved and made available by the next business day. Historical data and images in both the old RTR and InfoImage systems are converted and made available. Historical data and images from the Lockbox Banks are not available. See IRM 3.5.10, Remittance Transaction Research (RTR) System, for more information.

Associate both cases and research for a different entity if necessary. Research the cases.

Take the following resolution steps after corresponding:

If TC 610 is posted to the correct entity, close the TC 150 with URC 6 to correct the SSN.

If TC 610 is not posted to the correct entity and the correct entity is not established,

If TC 610 is posted to the wrong entity and the correct entity is established,

When the TC 610 is unpostable, use all appropriate research to find the matching TC 150.

This subsection contains procedures for resolving EFTPS Credit Card and Electronic Funds Withdrawal Payments.

Identify the EFTPS payment(s) by researching IDRS CC IMFOLT.

If credit card payments, Electronic Funds Withdrawal payments, or ISRP/Lockbox payments attempting to post will result in an overpayment (refund), and they do not "match" the TC 150 information, research thoroughly before allowing the TC 150 to post.

If faxing the information, the EFTPS Technician will confirm receipt of the cases.

After two weeks from confirmation of Fax delivery, if you have not received the information necessary to complete the case, re-fax as a second request.

If the unreversed excess credit(s) in the current tax module has a prior year in the TRANS-DATE field:

If research indicates the payment is intended for another module or account, input a credit transfer. If the taxpayer indicates the credit does not belong to them and you are unable to determine where to post, if the payment is less than 1 year old, transfer it to Unidentified Remittance by sending Form 2424, Account Adjustment Voucher, to Accounting. If the payment is one year old or more, use Form 8758, Excess Collections File Addition, to transfer to Excess Collections. Close these cases with URC 6 to add CCC 3.

EFTPS and RS-PCC processes unidentified remittances. If EFTPS cannot locate the correct taxpayer, the payment will unpost with SSN 000-00-0002 as UPC 151 Reason Code (RC) 1. Refer to UPC 151 RC 1 instructions for resolution.

TC 971 AC 524 sets an identity theft indicator on taxpayer accounts that will cause electronic submissions to be rejected by the Modernized e-File System. It will cause Master File to unpost a paper return (or an electronic return that was accepted prior to AC 524 posting) to unpost UPC 147 RC 4 when the tax year of the return is greater than the year of death.

TC 971 AC 524 may be input by Information Processing Service(s) Organization (IPSO) or the Return Integrity and Compliance Services Taxpayer Protection Program (RICS TPP), or it may be generated when a final return posts with CCC F, CCC 9, or CCC A. Each year, during Cycle 01 conversion runs, the IMF will post AC 524 to any account where the Entity DOD reflects a year that is less than the upcoming filing season processing year and the account does not already have an unreversed AC 524 present. For example, an account with a 2022 DOD and no existing unreversed AC 524 will be locked by IMF in Cycle 202401, using the miscellaneous field description of “DECD.”

When a return unposts UPC 147 RC 4 due to the presence of AC 524, a CP-01H, Tax Return Submitted With Locked Social Security Number (SSN), notice is generated to the return address.

When responding to CP-01H correspondence where the taxpayer has authenticated and established the account has been locked in error, Both TC 540 on the tax module(s) must be reversed with TC 542 and AC 524 must be reversed with TC 972 AC 524. Refer to procedures in IRM 25.23.2.8.4, Locking Decedent Accounts - AC 524, for reversing a decedent lock. NOTE: TC 540 may be present on more than one module and can either be due to an update by the Social Security Administration, input due to correspondence, or generated by other processes, such as TC 530 with cc 08 applied by Collection. A NAP-generated TC 540 (DLN 28277-111-11111-Y) may not be reversed by an input transaction. Any attempt will unpost. If the TC 540 is in error, forward the TIN to your P&A staff to contact the HQ Analyst to reverse the TC 540. Reverse any non-NAP TC 540s with TC 542. Monitor the account to confirm the Entity DOD clears after the TC 542s post. If the date does not clear, search the modules for remaining unreversed TC 540s. Look in retention modules and other MFTs (29, 31, and 55).

TC 971 AC 524 can be reversed independently of the Entity DOD being cleared. Reversing AC 524 will permit the taxpayer to file electronically and will permit processed returns to post.

Unless there is another reason for doing so, do not input TC 012 to resolve a locked account. It will not release the lock or remove the Identity Theft indicator.

CC UPTIN displays all open unpostables for a specific TIN and maintains the unpostable on its file for display purposes for 90 days after it is closed.

CC UPREV is used to review the accuracy and completeness of corrected (closed) unpostable records.

The valid CC UPREV definers and definer-modifiers:

CC UPCAS is used to:

The valid CC UPCAS definers and definer-modifiers:

CC UPASG is used to assign or reassign an unpostable case or group of unpostable cases.

CC UPDIS is valid for all master files and is used to display an unpostable record.

When CC UPDIS is input, the automatic screen display shown is CC UPRES.

CC UPDIS displays the unpostable information previously displayed on CC UPCAS.

CC UPRES is used to correct an Unpostable case and displays when CC UPDIS is input.

The valid CC UPRES definers and definer-modifiers:

CC UPBAT is used to batch (mass) close unpostable cases that do not have an individual employee assignment number.

Refer to IRM 3.12.32.9, Command Code Definers and Definer Modifiers.

A Nullification Code is used to identify the receiving areas whenever a URC 1, URC 2 or URC 8 is used to close an Unpostable.

The originator IDRS Employee number is used to identify the appropriate Nullification Code. Refer to IRM 3.12.32.14, Nullified Area Codes, to determine appropriate Nullification Code.

Each unpostable record that is corrected with URC 1 is placed in "manual" status on the Service Center Control File (SCCF).

URC 1 is used when programming problems occur or when an IRA TC 150 needs input on an IMF account.

Do not route re-input (URC 1) documents to Data Control, except at the request of that function.

Remarks (Line 8 of UPRES) are always entered when closing an unpostable with URC 1. If no remarks entered, the system does not accept the correction and display an error message. Remarks must state why the unpostable is being closed with URC 1.

The Form 8749, Unpostable Action and Routing Slip (or locally developed form) is used when case is routed to another area.

Perform all research and complete all appropriate boxes on the form before attaching and routing the case. See IMF Unpostables Job Aid 2526-701.

CATEGORY CRITERIA—

PROCESSING AREA—

FORM 4251 - TRANSCRIPT—

TYPE CLOSURE/URC—

The Unpostable Cases assigned to Category B1, Entity is processed using IRM 3.13.122, IMF Entity Control Unpostables; IRM 3.12.179, Individual Master File (IMF) Unpostable Resolution; IRM 3.13.5, Individual Master File (IMF) Account Numbers; and IRM 3.12.32, General Unpostables.

General instructions for processing unpostables are located in IRM 3.12.32, General Unpostables and IRM 3.12.179 Individual Master File (IMF) Unpostable Resolution. The instructions for correcting Category B1 unpostables is located in this subsection.

If the original condition has been resolved, no additional research is needed, close with URC 0.

An unreversed TC 582 on the module indicates a lien is present, see IRM 5.12.3, Lien Release and Related Topics, regarding the necessity of a manual lien release. Employees of functions with access to the Automated Lien System (ALS) input lien release requests in these situations. For those functions that do not have access to ALS Centralized Lien Unit, refer to Centralized Lien Processing If contact is made via email, encrypt the email.

When correcting the unpostable and a change to NC, TIN, MFT, Tax Period, TC, etc. is required, always show the change on the unpostable document not on the Form 4251.

If the unpostable return requires a change to the TIN and a payment is posted to the incorrect TIN, move the payment to the corrected TIN.

All repeat unpostables generate back to the originator. If the repeat unpostable is not an entity problem and is not resolved by the Entity function, reassign the unpostable to the Unpostable Unit.

If a TC 610 and TC 150 attempt to post in the same cycle, the system does not let the TC 150 repeat.

If the unpostable document decreases but fails to eliminate the balance in the taxpayers account (when the account is in notice status), use CC TXMOD to determine when the next notice is due or if CC STAUP is present, or when it expires. If the next notice is due or the CC STAUP delay expires before the unpostable is resolved, input CC STAUP for three (3) cycles to allow the resolution of the unpostable.

When the unpostable is assigned to Entity Control, the computer generates Form 4251, Return Charge out, to Files for the document.

The unit manager or delegate is responsible for the assignment of unpostables to each tax examiner.

The cases assigned to each tax examiner is printed on a Daily/Weekly Employee-Assign-Aged List.

The processing time frame for all IMF unpostables directly assigned to Entity Control Unit (ECU) or reassigned to ECU, is twenty calendar days from receipt of all necessary documents, (which equals 14 workdays.)

If it is determined that a document or group of documents are nullified and need re-input, prepare a Form 3893.

Form 3893 is prepared for each re-input block (or portion of a block) with the sum totals of the associated detail document(s). Attach it to the first document of the re-input block. Do not detach the form when processing or filing. See IMF Unpostables Job Aid 2526-701.

File Type Box—Check the appropriate box.

Box 1 — Alpha/Numeric Block Control Number—Leave blank if routing to Batching in the Receipt and Control Branch.

Box 2 — Document Locator Number—Enter the eleven-digit block DLN. The complete DLN is entered, but only eleven-digits are transcribed into the Block Header.

Box 3 — Batch Number—The batch number is entered by Batching in the Receipt and Control Branch.

Box 4 — Document Count—Enter the number of documents attached to Form 3893. All the Documents must have the same DLN except for position 12 and 13.

Box 5 — Credit Amount—Enter the amount of the credit transaction. If more than one document, enter the sum of the credit amounts. Amounts are from remittance returns, payment transactions, transfer documents, or adjustments.

Box 6 — Debit Amount—Enter the total debit amount(s). This box must be blank if a credit amount is present. Debit amounts are present only with Document Codes 24, 45, 48, 51, 54, 58, and 87.

Box 7 —Transaction Code—Enter only when Block Header Transaction Code is required.

Box 8 —Transaction Date:

Box 9 — Header MFT Code—Enter only when required.

Box 10 — Secondary Amount—Enter the secondary transaction amount when required. If you fail to enter the secondary money amount on the Form 3893, but the amount is edited on the document, there is a block out of balance condition.

Box 11 — Re input Source Code—Mark one box as indicated.

Box 12 — enter DLN Year Digit:

FORM 4251 GENERATION CRITERIA-

Certain taxpayer submitted paper returns are being digitally scanned by a vendor and then processed through MeF by the IRS. The digitalized returns are identified by a unique FLC that begins with 37, 40, 42, 44, 75, 86, 91 or 92. The document is accessed through the EUP application. DO NOT order these returns.

See IMF Unpostables Job Aid 2526-701 for an example of Form 4251.

Primary Request - The Form 4251 generates each cycle for all Master Files. It is routed to Files if the return /document is needed to resolve the unpostable.

If the document filed by paper or electronically, attempt to correct the unpostable by using the data on the Form 4251, Return Charge-Out, and research using IDRS CCs, or any available listings. If the tax examiner cannot resolve the unpostable, the tax examiner must make additional requests for documents filed by paper for the unpostable return or document using the following methods:

Input CC UPRES with URC 2 to void to the originator all unpostable cases with the exception of revenue receipts, bankruptcy and TC 150s that are not resolved by the primary request. Input ″Doc not available″ in remarks. No other action is required.

Statute Period Returns - If Unpostables cannot secure or locate a return or document within 10 workdays of the ASED, follow these procedures.

Criminal Investigation (CI) case - If the missing document is a CI case (Category A1/A2), CI determines the necessary case resolution after all attempts have failed to locate the unpostable record. Category A1 records are closed to Rejects if so determined by CI.

Document Code/Doc Code 47— If the unpostable record is a Doc Code 47, research IDRS.

If a bankruptcy (GUF category Z1)case and document is unavailable, process the case per the Bankruptcy Listing guidelines as indicated below.

Secondary Request - A second request will be made by the tax examiner if the document cannot be located in Files or the FRC. Take the following action:

If Doc Codes 54, 63, and 77, void to the originator (CC UPRES with URC 2, with appropriate Nullification Code). Indicate in Remarks: Doc not available.

If none of the above conditions apply, Input CC UPCAS, with definer D and definer-modifier 2) after 15 work days (21 calendar days) of the INDIVIDUAL case assignment.

CONDITION - If the Date of death in the entity is significant and the input TC 540 does not have block series 11111, unpost the input TC 540 if the tax module contains an unreversed TC 540 with block series 11111 (TC 540 is considered reversed if there is a TC 542 block series 11111 posted in the same cycle as the TC 540 block series 11111 or later).

Resolution Procedures for UPC 177 RC 0 for TC 540: Close TC 540 with URC D. Beginning in filing season 2025, GUF should auto close these with URC D.

Research the account for the Scrambled SSN indicator by using CC INOLES or CC IMFOLE.

If Scrambled SSN Indicator is removed or 00, close the case with the appropriate URC. If this is a Joint Return check for indicator on XREF TIN.

Research the account to verify the Scrambled SSN indicator is set and is unreversed by using CC INOLES or CC IMFOLE.

If Scrambled SSN Indicator is removed or 00, close the case with the appropriate URC. See IRM 3.13.122.20.2, Resolution Procedure UPC 177 RC 0 When Scrambled SSN Indicator is Removed or 00.

If the Scrambled SSN Indicator is set to 01, 10, 12 or 20 and the MFR is set to 08, take the following action to begin the referral process.

Unpostables coordinates the resolution with Accounts Management (AM). The Accounts Management (AM) Function has responsibility for Scrambled SSN issues, including providing the IRSN (and establishing the number when necessary) to resolve the unpostable condition.

Contact the UPC 177 Scrambled SSN Coordinator, refer to Scrambled SSN Coordinators.

Send all related UPC 177 RC 0 cases for the same taxpayer, including all documentation to E-fax, *TS EEF AUAMC SCRM by using the specific information in the table below.

AM will attempt to supply the Unpostable function with the information to resolve the unpostable condition within 3-5 days of receipt of the condition and supporting documentation.

When TAS sends an OAR to Unpostables to resolve UPC 177 RC 0, they must include the documentation listed in IRM 21.6.2.4.3.3, Determining If the Refund Should Be Released (1) (a)-(e). If the required documentation is not included, the OAR should be returned/rejected to TAS requesting the required documentation. If all documentation is received, elevate the TAS OAR case to Campus P&A Analyst and include all supporting documentation. The Campus P&A Analyst will elevate the case to the IMF Entity HQ Analyst.

Unpostable 177 Reason Code 0 Resolution: The Scrambled SSN team advises Unpostables of the correct TIN. Close the case as indicated by the Scrambled SSN Coordinator.

When an IRSN is provided as the resolution, the Unpostable examiner (unless otherwise specified by AM):

If additional information is needed, see IRM 21.6.2 Adjusting TIN-Related Problems.

An Individual Income Tax Return, Form 1040 must not post when the taxpayer died in a year prior to the Tax Year of the return, regardless of the type(s) of income being reported or credits being claimed.

Verify the unpostable is addressing the correct taxpayer. If not, research to find the taxpayer. Correct any transcription errors by closing with URC 6. See IRM 3.13.122.21.3, Resolution Procedure UPC 182 RC 0 When SSN Does Not Belong to Taxpayer.

Research the document, attachments, CC INOLE, and CC ENMOD to verify the taxpayer's DOD and MFR Code. If the information is verified as the owner, review the account for indications of possible Identify Theft (IDT).

Indications of possible Identity Theft (IDT) may include the following:

If there is an open identity theft control base for the same year as the UP return, then open the account with TC 012. Close with URC 6 and input CCC 3. Otherwise, follow normal processing procedures according to the UPC 182 condition. See IMF Unpostables Job Aid 2526-701 for an example of an open IDT1 control base.

If a deleted unpostable for with AC 052, AC 152 or AC 134 is identified, then close the Unpostable TC 150 with a CCC 3 to freeze the refund (if CCC 3 is not already present).

Perform correction of the TC 610 in the same cycle, or prior to the resolution of the TC 150. Refer to IRM 3.13.122.11 for information involving TC 150 and TC 610.

Refer to IRM 3.13.122.12, Resolution Procedure for Decedent Returns, for additional information regarding correspondence issues, replies, and no reply procedures on Decedent Returns.

When input of TC 012 on a deceased taxpayer account, do not take steps to put the account back into MFR 08. Programming is in place to close reopened accounts during cycle 01 conversion runs.

Research IDRS and the IRSN log/file for the correct SSN. Refer to the chart to determine the proper resolution for IRSNs.

Research IDRS for correct SSN.

Research RTR and CC IMFOL to verify payment is applied to the correct taxpayer and tax period. If the tax period is transcribed incorrectly, or there is indication the payment is intended for a prior year module.

Research the document, attachments, CC INOLE, and CC ENMOD to verify the taxpayer's DOD and MFR Code.

If research indicates the DOD is prior to the tax period on the document, research CC INOLET, CC NAMEB, CC NAMEE, CC NAMEI, and CC NAMES for an established Estate or Trust account. Research must always include the MFT 05, MFT 51, or MFT 52.

Use the following chart when the DOD is prior to the tax period of the document.

Use the following table to resolve the unpostable if research indicates the taxpayer's DOD is during the tax period of the document.

On occasion, the entity between the primary and secondary taxpayer is reversed. If research indicates the entity information requires correction, use the If and Then chart below.

Review the account using the table below.

Use the following table to resolve the unpostable if research indicates the taxpayer's DOD is during the tax period of the document.

If the primary taxpayer's DOD is prior to the tax period on the document, research the document, attachments, CC ENMOD and CC INOLE for the secondary taxpayer's SSN.

If the spouse's account is established, compare the name line of the established account with the spouse's name on the unpostable document:

If the unpostable is on a JOINT ACCOUNT and the primary is deceased PRIOR to the tax period of the return and the secondary taxpayer is deceased during or after the tax year, research CC ENMOD and CC INOLE for MFR code.

If the Unpostable is for a JOINT ACCOUNT and both primary and secondary taxpayers deceased prior to the tax period/tax year, research using CC ENMOD and CC INOLE for MFR code.

If the unpostable is generated from a TC 540, it GUF Auto-Closes with URC D.

Follow the chart below for resolution for specific transaction codes.