Some transactions, payments and returns are unable to post to the master file due to the programming of specific conditions. Research and perfection/correction of unpostable conditions are necessary to allow the transactions to post appropriately. IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution, provides procedures for maintaining the integrity of the Business Master File (BMF), Combined Annual Wage Reporting (CAWR) and Payer Master File (PMF) Unpostables by resolving unpostable transactions/conditions that are not compatible with existing master file data or normal Submission Processing Campus operating procedures.

Authority for these procedures is found in the following enactments and sections of the Internal Revenue Code (IRC) and their corresponding Treasury Regulations:

The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

The Operations Manager is responsible for monitoring operational performance for their operation.

The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

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

The information in this IRM applies to the resolution of BMF/CAWR/PMF Unpostables through the Generalized Unpostable Framework (GUF) system.

Program Reports: The GUF system generates reports found on the Control-D application and are utilized for program management and review. See IRM 3.12.32, Error Resolution - General Unpostables, for a general listing of the reports.

Program Effectiveness is measured by the following:

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

Program controls utilized to oversee the program include the system control reports derived from GUF on the Control-D system, the Embedded Quality Submission Processing (EQSP) program and quality reviews.

The following acronyms are used throughout this IRM:

The following resources will assist in performing the work as outlined in this IRM.

Instructions on usage of GUF Command Codes can be found in the resources listed below:

The IRM sections below may be related to the resolution of unpostables contained 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 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, IRM 3.12.32.20.3, GUF 11-40, New Unpostable Report and Summary, IRM 3.12.32.20.21, GUF 55-40, Unpostable Employee Assignment/Aged List and GUF 55-42, Unpostable Employee Assignment/Aged Summary; 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 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.

Effective August 7, 2023, if a letter is being sent to a taxpayer with an undeliverable (UD) indicator on their account, the IAT Letter Tool will generate an alert. The UD indicator can be identified by the presence of a TC 971 AC 661 on the account. TE’s will need to verify the entity, update the taxpayer’s address and remove the UD indicator from the account before a letter can be issued.

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 BMF campus cycles are:

BMF transaction posting time frames are outlined as follows:

Weekly management review of unpostable inventory will include identification of unpostable cases to be assigned and worked in the following priority:

Weekly management review will include:

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 3.12.279.14, Taxpayer Delinquent Investigation (TDI) and Notice Delay Information.

Use the guidelines in IRM 3.12.279.8.1, Taxpayer Communication, and IRM 3.12.279.8, Contacting Taxpayers 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 taxpayer identification number (TIN), and/or tax period. Accurate posting of these accounts will expedite processing and minimize adverse taxpayer contact.

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 must not be reassigned between the Unpostable unit and the Entity/Entity Unpostable unit 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.

Contact with the Entity and/or Entity Unpostable unit may be required for resolving Unpostable codes (UPC) 301, 303, 307, and 329. The receiving area will be responsible for resolving the unpostable condition. This reassignment will take place only after the unpostable unit attempted to resolve the case. The unpostable unit will also attach all research when reassigning the case.

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

It is the unit manager’s responsibility to monitor the assignment of work to tax examiners. Unit managers will ensure work is distributed at their discretion in accordance with inventory management guidelines of the site.

There are four types of unpostable case closures:

To reduce the amount of interest paid by the IRS due to untimely processing, the Interest Reduction Initiative Report (GUF 07-42) and Unpostable Credit Interest Summary Report (GUF 07-43) generate for all BMF Transaction Codes (TCs) 150, 295 and 299 unpostable records where the credit interest date is in jeopardy or expired. See IRM 3.12.32.20.1, GUF 07-42, New Unpostable with Interest Free Period Due to Expire and GUF 07-43, Unpostable Credit Interest Summary Report for specific details of those reports.

If the IRS does not meet the 45-day interest free period for return processing, interest must generally be paid to the taxpayer. In limited circumstances, a 180-day interest free period applies. See IRM 20.2.4.8.4, 180-Day Rule, for more information on the 180-day rule.

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. Please see IRM 3.12.38.5.6, BMF General Instructions - Manual Refunds, for additional instructions.

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."

The Form 8749, Unpostable Action and Routing Slip, must be used when a case is routed to another area.

All appropriate research must be completed prior to routing the case and all applicable boxes must completed.

The Taxpayer Advocate Service (TAS) is an independent organization within the 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.

Unpostable employees must thoroughly familiarize themselves with the criteria required for TAS case referrals. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria. Taxpayers, their representatives, or IRS employees may complete Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order), to request assistance from TAS.

Refer a return with a notation of an actual or potential hardship to your Workleader or Supervisor.

Items meeting TAS criteria may be discovered at any point in the processing cycle. If the item or case meets any TAS criteria, the case will be referred to the workleader/Supervisor for referral to TAS. If the criteria cannot be determined but the taxpayer indicates several contact attempts (i.e., letters, calls etc.) have been made and determination cannot be made if this is the third or more contact, the case will be referred to the workleader and/or Supervisor for possible TAS routing action.

On unposted IMF or BMF tax returns, excess credits claimed (i.e., the amount of reported credits exceeding the tax liability) may be refunded to the taxpayer when a hardship situation exists even when it would otherwise be subject to offset to outstanding IRS debts. These are referred to as Offset Bypass Refunds (OBR). See IRM 3.12.279.4.2, Offset Bypass Refunds (OBRs), for more information on how to address these situations. Additional guidance may be found in IRM 21.4.6.5.11.1, Offset Bypass Refund (OBR).

There are certain cases that TAS will not accept. See IRM 13.1.7.4, Exceptions to Taxpayer Advocate Service Criteria for additional information.

Issues meeting TAS criteria do not need to be sent to TAS if they can be resolved by the unpostable function within 24 hours. The definition of "same day" is within 24 hours. There may be instances where a case can be resolved within 24 hours. There may also be instances where the issue cannot be completely resolved within 24 hours, but steps can be taken to resolve the issue that will meet the definition of "same day." Do not refer these cases to TAS unless the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. It is important all IRS employees handle potential TAS cases with the taxpayer's best interest in mind.

Taxpayer Advocate Service Operations Assistance Requests (OARs): TAS uses the Operations Assistance Request (OAR) process to refer a case to the Operating Division/function when TAS lacks either the statutory or delegated authority to affect the resolution of the taxpayer's problem. TAS uses Form 12412, Operations Assistance Request (OAR), to initiate the OAR process. TAS requests must receive priority attention in accordance with the Service Level Agreement.

Offset Bypass Refunds (OBRs)

Issues and Considerations for OBRs - For accounts with no freeze codes, OBR requests must be received and processed before the actual posting date on the freeze condition and before the account is offset. OBRs may also be made on later adjustments made to a tax module and result in an overpayment. These may include a payment or credit transfer, an audit tax adjustment, a math error correction, and an amended return or claim filed and processed. Each will have its own 23C date.

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 starting time for the 30-day release period is affected by the type of satisfying transaction. See IRM 5.12.3.3.1, Liability is Satisfied - IRC 6325(a)(1) for additional information on the type of satisfying transaction and how the 30 days is generally calculated.

Timely release and accuracy of the lien is essential. IRC 7432 gives taxpayers the right to sue the federal government for damages if the IRS 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. 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 the ALS, use the internal requests section for contact information on the Centralized Case Processing (CCP) Lien Teams page located on SERP: CCP Lien Teams.

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

The GUF system assigns a category code to every unpostable record and sorts expedite and/or special handling cases in order according to recipient. If an assigned record is determined to have Statute or Bankruptcy (insolvency) issues, the case will be assigned the following categories:

If any of these criminal investigation (CI) criteria 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.

Unposted payments on modules with the Large Corporation indicator (LCI) present will be suspended for further instructions from the Large Corporation program. To find the LCI indicator on IDRS, follow the chart below. The number next to the indicator will determine which campus to contact.

See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases for additional contact information. Resolve the unpostable per the instructions from Large Corp.

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 must research to verify the payment was correctly applied. If the Taxpayer Identification Number (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.

The Microfilm Replacement System (MRS) is an automated research system which eliminates most microfilm research done in Campuses and Area Offices. MRS requests for transcripts are input using command code (CC) MFTRA. Transcripts requested through CC MFTRA are available to view on the Control-D application under the report name SC MFTRA 7-8 days after the request is input. The most common requests are:

For detailed information regarding CC MFTRA and the MRS, see IRM 2.3.32, Command Code MFTRA.

If a transcript response returns as tax module not found, use the Form 3774 Request for Research, to request the transcript from the Microfilm function.

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 must only assign GUF command codes (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:

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) will use the EUP system to review forms as needed when resolving an unpostable with an electronically filed return.

If research determines there are multiple, or potential duplicate unpostable returns, then follow local procedures for suspending and associating unpostable cases.

When research determines the unpostable document is a "true" duplicate and specific instructions for handling duplicate documents are not present, the following action must be taken:

Unpostable Document Cancellation Procedures - If the unpostable document is canceled (excluding tax returns, payments, or extension),

If the unpostable document is to be canceled and is NOT attached behind the return or routed to the initiator, destroy the document.

If the unpostable return is a duplicate (paper) return to a previously filed return on MeF, take the necessary action to URC 8 and request Rejects to cancel the DLN.

If the posted return was filed more than seven years ago, DO NOT request the unpostable return be associated with it. Request the return to be re-filed in its original block after the DLN is canceled.

Positive Identification of True Duplicate - If "positive" identification cannot be made to a "true" duplicate (especially for returns), treat as an original. Ensure that proper research is completed to avoid erroneous posting, duplicate credits or payments with return (TC 610).

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

RRA 98 Section 3705(a) provides identification requirements for all IRS employees working tax-related matters. The paragraphs below provide general information for taxpayer communication to resolve unpostable transactions if needed.

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 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 previously provided, every attempt will be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee will refer the inquiry, using established procedures, to the team 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 3.12.279.4.1, 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.

A taxpayer's mailing address will not be updated unless clear indication of a change from the taxpayer or the taxpayer’s representative is received.

Undeliverable mail will often have a yellow sticker from the United States Postal Service (USPS) showing a new address. Examine, research, and update the address as follows:

Unpostables must make every effort to locate good addresses for taxpayers whose Master File address is undeliverable.

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

Check schedules or documents attached to the return for other addresses. If another address is found, reissue correspondence.

Effective August 7, 2023, if a letter is being sent to a taxpayer with an undeliverable (UD) indicator on their account, the IAT Letter Tool will generate an alert. The UD indicator can be identified by the presence of a TC 971 AC 661 on the account. TE’s will need to verify the entity, update the taxpayer’s address and remove the UD indicator from the account before a letter can be issued.

For additional information on undeliverable mail refer to IRM 3.13.2.5, Undeliverable Mail and Notices.

The Correspondence Imaging Inventory (CII) system (formally Correspondence Imaging System (CIS)) is a document imaging and workflow system for Accounts Management. All incoming paper correspondence, notice replies, amended returns, internal transcripts and internal Computer Paragraph (CP) notices are scanned and processed as digital images. CII interacts with IDRS to control cases, input notice delays when needed, and distribute cases electronically to Customer Service Representatives (CSR’s) for resolution.

CII returns are identified with "CII Image - Do not correspond for Signature" stamped below the signature line and/or the CII case ID will be stamped to the upper left corner on the first page of the return.

Follow the instructions below for processing CII returns:

Case resolution may require the use of a facsimile machine or the Enterprise Electronic Fax (EEFax) system utilized by IRS employees to send and receive fax documents.

If a return has been faxed to another area of the IRS and then sent to Submission Processing for processing, do not edit the EEFax Date as the IRS Received Date.

Please refer to the following websites for additional EEFax information:

An unpostable return can sometimes require a manual refund. Unpostable employees are required to be thoroughly familiar with how to identify when a manual refund is necessary, and the actions required to initiate a manual refund.

What is a manual refund? A manual refund (TC 840) is a refund issued in cases where the IRS has determined the case meets certain conditions to require expedited processing and provide the refund to the taxpayer as quickly as possible. A manual refund is not generated through normal Master File processing (TC 846) but is processed manually by the Submission Processing Accounting Function, who schedules and certifies manual refunds.

Why would a manual refund be needed? Conditions necessitating a manual refund include:

The following are some circumstances which may cause the issuance of a manual refund:

Refer to the following IRM's for manual refund requirements:

EFTPS unpostables are worked according to the following instructions contained within this subsection. All unpostable codes not listed will be worked according to the specific unpostable code instructions.

Research the taxpayer account for a payment and/or date pattern to determine if the payment belongs to the taxpayer. If the payment belongs to the taxpayer, post with taxpayer’s intent as appropriate.

If the second digit of the Electronic Funds Transfer (EFT) number is a "2" (ACH debit), assume that the payment is addressing the correct EIN.

If the payment has a Designated Payment Code (DPC) of 64 (Designated IRC 965 transition tax payment), additional research is required to determine if the payment is meant for an IRC 965 installment or if it is a misapplied payment meant for a different module requiring Rejects to remove the DPC. See IRM 3.12.279.32, UPC 309 RC 1 Tax Period/MFT Mismatch for more information.

Do not send these cases to Accounting if the EIN is established on master file:

If necessary, contact the EFTPS Accounting Technicians to request contact information. Requests can be sent via fax at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Provide the following information with the request:

The Submission Processing (SP) Unpostable function may receive Form 4442, Inquiry Referral, for open unpostable cases. All Business Operating Divisions (BODs) requesting closure of an unpostable case must follow the instructions on the Form 4442 Submission Processing Unpostable Referral Listing found on SERP.

A Form 4442 will only be submitted if the unpostable case has not been resolved within 8 weeks of unposting. If the Form 4442 is received before the 8 weeks has lapsed, the referral may be returned to the originator to be resubmitted once the time frame is met.

If the Form 4442 is received and there is not an open unpostable, the referral will be returned to the originator.

Resolution of a Form 4442 referral received by the Unpostables unit must be completed within 20 days of receipt.

Campuses will ensure the Referral Listing contains accurate information and submit updates as necessary.

For general information on Form 4442, see IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442.

Unpostable Resolution Codes (URCs) are input using the GUF command codes (CC) UPBAT and UPRES to close unpostable transaction cases. The functions identified below can resolve unpostable cases assigned to their functional area with those command codes:

The URCs and a description for each are listed in the table below.

The commonly used tax class information found in the Return Processing Codes table below are used with URC 6:

When using URC 8, the Unpostable function must attach a Form 8749, Unpostable Action and Routing Slip, or the 8-code slip to the return or document. Ensure the following is included to Rejects so they can work their case:

A nullify area code must be entered to identify the receiving area when closing an unpostable with URC 1, 2, or 8. For additional details on nullify area codes, see IRM 3.12.32.14, Nullify Area Codes. For specific details on nullify area codes, see the applicable IRM references below:

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 improper cycling. All document code 47 (Exam) and most document 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, new status and freeze conditions are set (released or changed); and notices, Taxpayer Delinquent Accounts (TDA's) and refunds etc. are issued; the length of time needed to post a transaction varies.

Background - The posting sequence for all Master Files is from lowest numbered Transaction Code (TC) to the highest numbered TC.

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

Transaction Posting Time - Transaction posting time depends on the input method as follows:

Rules for Cycling - Cycle transaction if:

Do not cycle transactions if:

Tax examiners can cycle transactions on IDRS with a Posting Delay Code (PDC).

The following IDRS command codes (CC) have the posting delay capability:

Pre-journalized Credit Transfers - Pre-journalized credit transfers with command codes DRT24 and DRT48 (Doc Codes 24 and 48):

Dual Debit/Credit Transfers - Dual Debit/Credit Transfers with CC FRM34 (Doc Code 34)

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

General Instructions - Tax examiners must input a PDC with transactions to be cycled.

The PDC will not post with the transaction or be shown with the IDRS pending transaction. The projected MCC posting cycle on the IDRS "PN" (status pending) transaction will be extended to account for any PDC impact on the transaction.

All areas working unpostables must make the necessary corrections on the return or document which includes correcting the Employer Identification Number (EIN) and tax period.

If corrections are made to Document Code 51 cases, route to Revenue Accounting for reinput.

IRC 6611(g) prohibits the payment of interest until a return is in processable form. If the return is not in processable form, suspend the interest-free period (usually the 45-day interest-free period but sometimes the 180-day interest-free period). The return is not considered processable until all the required information, correspondence, or supporting documentation is received.

A taxpayer is not considered to have filed a tax return (which begins the period of limitations on assessment) until the taxpayer files a valid tax return. See IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period and IRM 25.6.1.6.16, Processable - Unprocessable Returns for the criteria to determine whether a return is valid.

Caution must be taken to determine when a return was filed or became processable since those dates are considered for purposes of computing allowable interest. See paragraph 5 below.

The Microfilm Replacement System (MRS) is an automated research system that eliminates most microfilm research. Master File (MF) has the capability to maintain and display two dates on MRS or MF. The first date will be the "received date" and the second the "processable received date." The "received date" will be used to determine the statute dates while the "processable received date" will be used to compute interest on overpayments.

If the refund check date is more than 45 days after the later of the (1) return due date (RDD), (2) Return Received Date, or (3) Return Processable Date/Correspondence Received Date, determine the overpayment interest period using the tables below. In the preceding sentence, substitute 180 days for 45 days if the 180-day rule applies. See IRM 20.2.4.8.4, 180-Day Rule.

This applies to all types of tax returns and windfall profit tax returns.

Unpostable Correspondence Return Requirements - If a timely filed return is being processed enter the return due date as the return received date.

Late replies (correspondence was received after return due date) - enter Return Processing Date (RPD) in the following priority order:

Late replies on Modernized E-file (MeF) after the return has been canceled - If document correspondence needs to be associated with an e-filed return, a refile DLN must be created. Use the following to input TC 290 on IDRS to generate a refile DLN:

Use the following blocking series:

Monitor the TC 290 until posted. Prepare a routing form and send to Files within 3 days of posting.

The date a document is received in the Campus or an IRS office that can accept tax returns is the date stamped as the IRS Received Date. All mail received from 12:00 a.m. to 11:59 p.m., seven days a week, including Saturdays, Sundays, and legal holidays is date stamped with the actual date received. See IRM 3.10.72.6, IRS Received Date.

Refer to the following IRM Exhibits to determine date stamping requirements for the various document types:

The received date may or may not be stamped or typed on the face of the return.

An IRS received date must be established on a return or document if the face of the return is not date stamped or does not contain a handwritten entry.

Determine the received date by the priority order listed below:

For additional information on how to determine the U. S. Postmark, Private Delivery Service (PDS), or received date refer to IRM 3.10.72, Receiving, Extracting, and Sorting and IRM 3.10.73, Batching and Numbering.

See IRM 3.10.72.6 for additional information on determining the IRS received date.

If the street address is not available on the document or return, or through IDRS research using CCs FINDS/FINDE, NAMES/NAMEE, NAMEI/NAMEB, ENMOD and INOLE, request the prior year return to research for the taxpayers last known address. Utilize CC TRDBV to view prior year return addresses and EUP for e-filed returns before requesting the paper return.

Never change a taxpayer's address to a Campus address.

Use the instructions provided in the table below to determine when to change the address on a signed current year return that has unposted:

Do not update the address on prior year returns if the address on the account is different, unless the return is a signed, Final return for which the taxpayer has requested an address change.

There are two types of international mailing address:

U.S. Possession Address include:

U.S. Possession Addresses must be processed with a valid two-character state abbreviation:

A foreign address is any address that is not:

When a foreign address change is indicated, input an entity change with TC 014 with the changed information, plus any unchanged information to make a complete address. See IRM 3.13.2.4.5, Foreign International Mailing and Location Addresses (other than APO, FPO, MP, FM, MH, PW, PR, GU, AS, and VI).

Returns with address changes in the following American possessions can be input with the return:

Army Post Office (APO), Fleet Post Office (FPO), or Diplomatic Post Office (DPO) Addresses - For APO, FPO, DPO addresses see IRM 3.13.2.4.4, Domestic International Addresses (APO, FPO, MP, PR, GU, AS, FM, VI, MH, PW, AA, AE and AP).

UPC 301 RC 1 unpostables with Doc Code 14, 19, 77 or 78 are GUF Auto-Closed with Unpostable Resolution Code (URC) D.

UPC 301 RC 1 with TC 370, Doc Code 52 is an attempt to transfer a tax module from the Retention Register to the Master File. Use the following chart for resolution of UPC 301 RC 1 for Doc Code 52 TC 370:

UPC 301 RC 1 with TC 370, Doc Code 51 are unposted prompt, quick and/or jeopardy assessments. Research for a better EIN and use the following chart for resolution of UPC 301 RC 1, Doc Code 51, TC 370:

For returns (TC 150/976), payments (TC 610/670) and extensions (TC 460/620) that unpost as UPC 301 RC 1 for MFT 51 and 52, research for a pending TC 000 or established account (timing). Use the following chart for resolution of UPC 301 RC 1 for MFT 51/52 TC 150/460/620/610/670:

If a credit for treasury bonds (TC 678) for MFT 51/52 unposts as a UPC 301 RC 1, then research for a pending TC 000 or established account (Timing) and use the following chart to resolve the unpostable condition:

UPC 301 RC 1 with TC 96X are GUF Auto-closed URC 2 to the Centralized Authorization File (CAF) Unit.

MFT 17, Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons, is an ad hoc return. Each return is filed to reflect a particular transaction and not as a general summary of a year’s income, etc. Because of this, there are no filing requirements on CC INOLE, and it is never considered (or coded) as a final return. The Form 8288 identifying number may need to be established on the Business Master File (BMF) and can be any of the following:

The name and TIN on Line 1 of Form 8288 must be for the same entity and must match the name of the Withholding Agent listed in box 1 of Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons. Refer to the instructions below for resolution procedures after researching IDRS for an established account:

UPC 301 RC 1 Resolution for Exempt Organization MFTs 34, 36, 37, 44, 46, 48, 50 and 67 as well as MFT 47, Form 8871, Political Organization Notice of Section 527 Status, and MFT 49, Form 8872, Political Organization Report of Contributions and Expenditures, is detailed in the following paragraphs.

Follow the table below when resolving extensions (TC 460/620) unposted under MFT 34:

For all others, research IDRS to determine if there is a pending TC 000 for the unpostable EIN. If a TC 000 is pending, research for a pending TC 016 Doc Code 80 which indicates the EO sub-module is being added:

Research on IDRS indicates no pending TC 000, research for a better EIN. If a better EIN is found for the taxpayer, check to see if there is an EO section:

UPC 301 RC 1 for TC 98X are GUF Auto-Closed URC 2 to CAWR.

UPC 301 RC 1 Resolution for all other unpostable transactions not covered in prior subsections are provided in the table below.

For UPC 301 RC 1 Resolution for Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts (MFT 68), use the table below to research and establish an identification number on the Business Master File (BMF):

For resolution of UPC 301 RC 1 for Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner (MFT 42), use the table below to research and establish an Employer Identification Number (EIN) on the Business Master File (BMF) for Form 3520-A:

The following procedures are for resolution of UPC 301 RC 1 for the Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, processed at the Ogden Campus only.

UPC 303 RC 1 occurs when a transaction listed below but coded greater than 000 fails to match on three out of four positions (using Proximal Method) of the entity name control, old name control, three out of the four left-most non-blank positions of the entity sort name line, or the four left-most significant characters of the first three words of the entity primary name line and then the sort name line.

UPC 303 RC 1 Resolution:

Use the table below for EO and EP UPC 303 RC 1.

Use the following table to resolve UPC 303 RC 1 when Category L7 credit transfers unpost:

Use the following table to resolve UPC 303 RC 1 when an EIN issue caused the transaction to unpost:

UPC 303 RC 2 occurs when a TC 650 quarterly payment (doc code 19) for MFT 01/03/14/16 doesn’t match on three out of four positions (using the Proximal method) of the entity name control, cross reference name control, or the entity sort name line, or the four left-most significant characters of the first three words of the entity primary name line and then the sort name line which resequenced 4 cycles or the 23C Date is equal to or later than the end of the tax period.

UPC 303 RC 2 Resolution - Compare the transcribed name control with the name as shown on the Master File for discrepancies and process as follows:

UPC 303 RC 3 occurs when a transaction (except TC 150 for MFT 36) with Doc Code 80, 81, 50, 53, or 63 with other than TC 001, 019, 14X, 796, 90X, or 99X but coded greater than 000 failed to match on all four positions of the alpha name control, cross reference name control, old name control, or the four left-most non-blank positions of the entity sort name line field, or the four left most significant characters of the first three words of the entity primary name line and then the sort name line.

UPC 303 RC 3 Resolution - Compare the transcribed name control with the name as shown on Master File for discrepancies.

Research for a possible tie-in (something on the entity module ties in with the unpostable) between all names available.

Otherwise, follow regular non-International procedures.

UPC 307 RC 1 occurs when the Fiscal Year Month (FYM) of the input transaction attempts to establish a tax module but does not match the FYM of the Entity account.

Unpostable employees will reassign UPC 307 RC 1 returns (TC 150) to the Entity Unpostable function for MFTs other than 33, 34, 37, 44 or 67 for the following reasons:

Use the following table to resolve all other transactions unposted as UPC 307 RC 1:

Use URC 6 to release the non-taxable returns listed below:

UPC 307 RC 2 occurs when any transaction (except TC 421 or 424 with SPC 039, source code 60 and Employee Group Code is 1000/2000) attempts to open a module whose period ending is greater than 23C date plus 12 months.

UPC 307 RC 2 Resolution - If TC is not 6XX, GUF Auto-Closed URC 8. All others, use the following table for resolution instructions:

UPC 307 RC 3 occurs when a TC 660 (estimated tax payment) for MFT 05, Form 1041, U.S. Fiduciary Income Tax Return (for Estates and Trusts), is not establishing the first MFT 05 tax module, has a tax period month of other than 12, and does not match the Entity Fiscal Month.

UPC 307 RC 3 Resolution - Release using URC 6 and post to the tax period on Master File.

UPC 307 RC 7 occurs when a TC 150 with Computer Condition Code (CCC) "Y" or a TC 620 with CCC "W" does not match on entity Fiscal Year Month (FYM) with input FYM other than 12 attempts to post with a TC 054/055 posted.

UPC 307 RC 7 Resolution:

UPC 307 RC 8 occurs when the input Fiscal Year Month (FYM) of the TC 150 for MFT 02, Doc Code 07, Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, does not match entity FYM, and the TC 060 is posted but its effective date is greater than the tax period on input.

UPC 307 RC 8 Resolution - reassign to Entity Unpostables. Notate case and attach research before routing.

UPC 307 RC 9 occurs when the input fiscal year month (FYM) of the TC 150 for MFT 68, Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Foreign Gifts, does not match the entity FYM.

UPC 307 RC 9 Resolution - GUF Auto-Closed URC 8 to rejects.