Resequencing on the Individual Master File (IMF) is often involved with the validity of a TIN.

Resequencing accounts is accomplished by the following methods:

These procedures are followed when resequencing the invalid segment to the valid, the valid segment to the invalid, or from one TIN to another.

Research for no merge (NMRG) conditions. See IRM 21.6.2.3.1, NMRG Conditions.

Research CC IMFOL for the valid and invalid accounts for both TINs (the "to" and "from" TINs) prior to resequencing an account. The resequencing action moves all tax periods present in the account. Specific tax periods cannot be moved independently. Only merge the account when ALL modules under the TIN(s) belong to the same taxpayer.

Research CC IMFOL with definer "Q" for resequencing transactions to prevent duplicate input and/or unpostables. See Document 6209 Section 8B, Master File Codes (Unpostable and Resequence), for resequence transactions.

Use the table below to determine next account action(s) based upon CC IMFOLQ results:

Monitor CC IMFOLQ for any new posted MFT 55 TC 960 and CC FINK every 30-45 days for any future MFT 55. If any new are found, elevate per previous paragraph, box 3.

On the "from" TIN, reinstate all recoverable lower level modules dropped to retention in 1994 and later using CC IMFOL with definer "B" . See IRM 2.3.51.4, Restoring RRR Tax Modules to Master File.

Vestigial modules, dropped to retention prior to 1994 and unrecoverable modules, are reinstated if there is a module for the same year on both the "to" and "from" accounts. This is a NMRG condition and must be reassigned to NMRG. See IRM 21.6.2.3.4, Reassignment of NMRG Cases due to Site Specialization.

Do not input the resequencing transaction until the reinstatements are complete.

If the return posted to the invalid segment of the same TIN because of a name control mismatch, follow the appropriate procedures in IRM 3.13.5.120, Correcting a Taxpayer’s Name.

If the return posted to the invalid segment of a different TIN, see IRM 3.13.5.118, Taxpayer Identification Number (TIN) Changes (generates a TC 011).

When resequencing an ITIN to another ITIN, see IRM 3.21.263.8.5, Merges Involving ITIN, to determine which number should be the "from" account and which should be the "to" account. Revoke the ITIN for the "from" account per the instructions in IRM 21.6.2.4.1.3, ITIN to SSN Name Controls Match, (5) through (8), after all transactions have posted.

Before following these procedures research for no merge conditions. See IRM 21.6.2.3.1, NMRG Conditions.

If the name on the ITIN matches the valid SSN "SSA N/C" on CC INOLE with definer "S" , research the status of the ITIN in the upper right part of the screen.

Whether the ITIN belongs to the primary, secondary or dependent, if there are tax years on CC IMFOLI or there is entity data on CC IMFOLE, the ITIN must be resequenced to the new SSN. If any modules are in retention, see IRM 21.6.2.4.1.2, Resequencing Action Required. When completing a TIN change of a secondary taxpayer’s TIN who files Married Filing Joint Return (FS 2), a two-step correction process may be required. See IRM 3.13.5.124, Add, Delete or Change Spouses’ TIN (generates a TC 017), for more information.

If working a CII case and the ITIN being merged is for the primary, after the ITIN has merged to the SSN, update the ITIN on the CII case to the new SSN. IDRS displays two controls on the new SSN that appear for this CII case. The one with the same control number as the open CII case is the valid control. The other one is from when the account merged and must be manually closed.

If working an e-4442 referral and the ITIN being merged is for the primary, after the ITIN has merged to the SSN, a new control base will generate on the SSN and manually closed prior to closing the referral.

After the merge to the SSN is complete, complete a Form 4442/e-4442 from the primary account for each ITIN associated with the case and being revoked; primary, secondary and dependents. Route Form(s) 4442/e-4442 to the Submission Processing Center (SPC) ITIN Unit to request the revocation of the ITIN(s). See IRM 3.21.263.8.6, Form 4442, Inquiry Referral, for information required on the Form 4442/e-4442. Include a copy of CC INOLEX of the ITIN showing the merge to the SSN.

To monitor for the revocation, establish a new control on IDRS under the primary account. Use activity code "ITRVK/XXX" (XXX = Julian purge date), status code M, category code MISC and the current date for the received date.

After all required actions have been taken on the SSN the CII case or a Form 4442/e-4442 referral can be closed.

Once all related ITINs have been revoked and posted to RTS (the Status on RTS displays "rejected" and/or Reason Code "R15" ) close the "MISC" base.

Research for no merge conditions. See IRM 21.6.2.3.1, NMRG Conditions.

If the name on the ITIN and the name on the SSN are both valid, update the name on the ITIN.

For additional information see IRM 3.13.5.120, Correcting a Taxpayer’s Name.

After the merge is complete, follow paragraphs 4 through 8 in IRM 21.6.2.4.1.3, ITIN to SSN Name Controls Match.

Whether the ITIN belongs to the primary, secondary or dependent, if there are tax years on CC IMFOLI or there is entity data on CC IMFOLE, resequence the ITIN to the new SSN. If any modules are in retention, see IRM 21.6.2.4.1.2, Resequencing Action Required.

Analyze the case and identify the correct and incorrect taxpayer for the common number (CN) as follows:

If either account contains an offset (TC 896 or TC 898) to a state or federal agency, take no action before referring to IRM 21.4.6.4.2.4, Child Support TOP Offsets, and IRM 21.4.6.5.17, Mixed Entity Cases with TOP Offsets.

When impacted tax years include 2018-2021, refer to IRM 21.6.2.4.7, Economic Impact Payment (EIP) and Multiple Taxpayers Using the Same TIN, before taking any action.

When Advance Child Tax Credit payments, identified by a TC 290 .00 with Credit Reference Number (CRN) 272 are present on tax year 2021, refer to IRM 21.6.2.4.8, Advance Child Tax Credit (AdvCTC), before taking any action.

Consider possible changes to the Return Processable Date (RPD). See IRM 21.5.6.4.17, I- Freeze.

The following procedures are required when a valid different TIN is found for "taxpayer B" and "taxpayer A" posted first:

The following procedures are used when a valid different TIN is found for "taxpayer B" and "taxpayer B" posted first:

For TY 2014 returns and later, correct "taxpayer A’s" account to reflect provisions of the Affordable Care Act (ACA).

Take the following into consideration when processing "taxpayer B’s" tax information to their valid TIN:

If "taxpayer A" is due a refund, the refund is systemically released unless an exception applies. See IRM 21.4.4.3, Why would a Manual Refund Be Needed. When it is necessary to issue a manual refund, HC 4 is required on the adjustment. The manual refund should be issued before the return has been DIF Scored. Input a priority code (PC) 1 on the case. Refer to IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional guidance on issuing a manual refund.

If "taxpayer A" (or the spouse of "taxpayer A" ) filed an injured spouse claim, correct the account to reflect "taxpayer A’s" information and then refer the Debtor Master File Case (DMFC) to the specialty group:

If, after complete research and corresponding with the taxpayer, a different valid TIN is not located for "taxpayer B" , see IRM 25.23.4.2, Identity Theft (IDT) Paper Process Overview, for procedures.

When a mixed entity situation occurs on an invalid SSN, take the following actions:

Use the following procedures when a TC 576 is present and "taxpayer A" posted first.

When a valid SSN is located, "taxpayer B’s" return posted first and "taxpayer A’s" return contains no Unallowable Code (UA) condition, take the following action:

When a valid SSN is located, "taxpayer B’s" return posted first and there is an UA condition on "taxpayer A’s" return, take the following action:

When a mixed entity occurs on an invalid SSN, use procedures in IRM 21.6.2.4.2.5, Invalid SSN - Mixed Entity.

Analyze the case to identify the taxpayers involved:

Analyze the case to determine which condition exists:

Use local procedures to obtain an IRSN for each taxpayer. IRSN 1 is issued for "taxpayer 1" . IRSN 2 is issued for "taxpayer 2" . When establishing IRSN 2, set the appropriate Scrambled SSN Indicator (SCI) as shown in Exhibit 21.6.2-1, Scrambled SSN Indicators.

Research to determine if there is a closed or existing scrambled SSN case for the same taxpayer.

If substantiation of identity theft is received from one taxpayer after the Letter 239C or Letter 5064C, 40-day suspense period (70-days for overseas taxpayers), has expired, follow procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

If substantiation of identity theft is received from both taxpayers, follow procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

If at any time a completed Letter 239C or Letter 5064C questionnaire is received after the 40-day suspense period has expired, 70-days for overseas taxpayers, follow the procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

Follow the If/Then table below when scrambling a True/Default True Scrambled SSN Case:

Only release the refund when the taxpayer has provided the required documents to support their identity and is supported by your account research, or has responded to the Letter 239C or Letter 5064C with a complete and accurate questionnaire and all of the following:

If the taxpayer is claiming a hardship, which may warrant the issuance of a manual refund, refer the case to The Taxpayer Advocate Service (TAS) for hardship determination per IRM 21.4.4.3, Why Would A Manual Refund Be Needed?

Overpayment(s) a year old or older are transferred to Excess Collections when the account is scrambled. Allow an Accounts Maintenance Research (AMRH) transcript(s) to generate on account(s) with overpayment(s) less than a year old. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) and unidentified Remittance File (URF) for AMRH.

These procedures are used when Condition 1 is present.

Correct the CN entity information to agree with "taxpayer 1's" return.

Edit the SSN on "taxpayer 1's" return to show IRSN 1.

Reprocess "taxpayer 2's" return to IRSN 2. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for editing instructions. Edit with Computer Condition Code (CCC) 3 to hold the refund, if necessary. See IRM 21.6.2.4.3.3, Determining if Refund Should be Released.

Transfer "taxpayer 2's" payment(s) from the CN to IRSN 2.

Input TC 971, AC 002 on the CN to cross-reference to IRSN 2. Input TC 971, AC 017 on the IRSN to cross-reference the CN.

Input a TC 290 .00, BS 00 (or if "taxpayer 1" filed an electronic return, use BS 05), on the CN to release the -A freeze. Use HC 4 if holding the overpayment. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released. Allow items requiring a valid primary TIN, i.e., EITC, primary exemption, and/or education credit, if "taxpayer 1" would otherwise qualify for the items.

Resolve all conditions that would prevent the CN from merging. See IRM 21.6.2.4.1.2, Resequencing Action Required.

Resequence CN to IRSN 1. Include appropriate scrambled SSN indicator as shown in Exhibit 21.6.2-1, Scrambled SSN Indicators.

After "taxpayer 2's" return posts to IRSN 2, input TC 510 and/or TC 571 to release the refund, if appropriate. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released.

If taxpayer(s) did not submit a complete Letter 239C response, transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) for AMRH. Allow an AMRH transcript(s) to generate on account(s) with overpayment(s) less than a year old. Also refer to IRM 21.2.4-3, AMRH FREEZE TABLE IMF/BMF, for additional guidance and IRM 21.6.2.4.3.3, Determining if the Refund Should be Released, for documentation required for a complete response.

Establish a summary account on the CN to prevent returns from posting.

Use the table below to determine next account or case action(s).

Use these procedures when Condition 2 is present.

Correct the CN entity information to agree with "taxpayer 1's" return.

Edit the SSN on "taxpayer 1's" return to show IRSN 1.

Reprocess "taxpayer 2's" return to IRSN 2. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for editing instructions. Edit the return with the appropriate Computer Condition Code. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released.

Transfer "taxpayer 2’s" payments from the CN to IRSN 2. For additional information see IRM 21.5.8, Credit Transfers.

If a refund was issued on the CN to "taxpayer 2" , move the refund. See IRM 21.5.2.4.23.10, Moving Refunds, for instructions.

Input TC 971, AC 001, on the CN to cross-reference the TC 150 to IRSN 2. Input TC 971, AC 017 on the IRSN to cross-reference the CN.

Math verify "taxpayer 1's" return. Adjust the CN to agree with "taxpayer 1's" return using BS 00. Use procedures in IRM 21.6.2.4.2, Mixed Entity Procedures, to delete the invalid taxpayer’s information from the account. Use HC "4" to hold the refund, if applicable. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released. Notate in remarks "Scrambled SSN - DUP becomes original."

Forward "taxpayer 1's" return to Examination for DIF scoring if it meets any of the criteria in IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review" . Use local procedures.

Correct the Return Processable Date if necessary using the date of the TC 976. See IRM 21.5.6.4.17, I- Freeze.

Resolve all conditions that would prevent the account from merging. See IRM 21.6.2.4.1.2, Resequencing Action Required.

Resequence the CN to IRSN 1.

After "taxpayer 2's" return posts to IRSN 2, input TC 510 and/or TC 571 to release the refund, if appropriate.

If taxpayer(s) did not submit a complete Letter 239C response, transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) and Unidentified Remittance File (URF) for AMRH. Allow an AMRH transcript(s) to generate on account(s) with overpayment(s) less than a year old. See IRM 21.6.2.4.3.3, Determining if the Refund Should be Released, for documentation required for a complete response.

Establish a summary account on the CN to prevent any returns from posting.

If a Letter 239C response is received after a case has been closed, reassign the case to the designated IDRS number and link the new information to the prior CII case. Send a courtesy e-mail to the designated employee to alert the employee of the new information. If Form 3857 is sent to SSA, change the control category to "SSA2" and reassign the case to designated IDRS number. Also ensure the completed Form 3857 is scanned to the CII case. Refer to the AM Site Specialization Temporary Holding Numbers for a complete list of designated IDRS numbers. The Scrambled SSN Coordinator monitors the case for an SSA acknowledgement.

Use the table below to determine next account or case action(s).

Contact SSA using Form 3857, Request for SSN Clarification, only for True/Default True Scrambled SSN cases. Include any pertinent information with Form 3857 to assist in resolution of the problem.

Complete Form 3857 with the following:

Attach legible photocopies of all Form W-2(s). Delete all money amounts except Social Security and Medicare.

Attach copies of the Letter 239C replies, including questionnaire, documentation, and correspondence.

Notate on Form 3857 any information received regarding recent address changes for the taxpayer(s).

SSA sends Form 3857 acknowledgement within 90 days. The acknowledgement includes the current status of Form 3857.

If Form 3857 was sent to SSA, change control category to "SSA2" , reassign the case to designated IDRS number located on the AM Site Specialization Temporary Holding Numbers listing. The Scrambled SSN Coordinator monitors the case for an SSA acknowledgement. Also ensure the completed Form 3857 is scanned to the CII case.

If an SSA acknowledgement is not received within 90 days, the Scrambled SSN Coordinator contacts the SSA POC to determine the status of the Form 3857 package(s). If they are unable to obtain a response from SSA POC within 14 days, the issue is reported to the Headquarters Scrambled SSN Analyst.

Scrambled cases must remain open in CII and maintain an IDRS control base utilizing control category SSA2 waiting for SSA’s Form 3857 response.

Each case file must include:

Attach or scan to the CII SSA2 case any taxpayer correspondence and other pertinent documentation with the related return for future reference.

The procedures in this subsection indicating contact with SSA apply only to True/Default True Scrambled SSN cases.

Send additional information received after a Form 3857 is sent to SSA, to SSA as a follow-up.

Notify SSA if either taxpayer files a return after the year in question or additional information is received from either taxpayer.

Scrambled cases closed without sending Form 3857 to SSA are identified by history item "no 239C reply" , "no 5064C reply" , or "SCI 10" or "SCI 20" on the CN summary account.

If a completed Letter 239C questionnaire is received from one of the taxpayers after the case is closed, create a new case and research for any new information that could aid in common number ownership determination.

When a Form 3857 response is received from SSA, or the taxpayer submits a response, take the appropriate action to close the case.

Verbal SSA responses are unacceptable. If SSA calls with a Form 3857 response, request that they complete and return the Form 3857 response by fax or mail.

If SSA does not verify the CN owner, the scrambled condition cannot be resolved. Process the accounts under the IRSNs until action by the taxpayer or SSA provides a resolution.

Consider the following:

If ownership of the CN is determined and the taxpayer submitted standard identity theft documentation, see IRM 25.23.2.3.6, When to Request Additional Information to Support an Allegation of Identity Theft, for acceptable documentation.

If one-year passes, and no reply is received from SSA or the taxpayers, review the scrambled SSN case file and iIf necessary, send a second Form 3857 request to SSA. See IRM 21.6.2.4.3.6, Form 3857, Request for SSN Clarification, for required entries.

Refer to the Scrambled SSN Coordinators, for the Scrambled SSN Point of Contact (POC).

The coordinator ensures:

E-Fax any new Form 3857 package to SSA to Division of Earnings and Business Services (DEBS) at ≡ ≡ ≡ ≡ ≡ ≡ ≡. SSA will E-Fax acknowledgment of Form 3857 packet to the Scrambled SSN Coordinator within 90 days. If no acknowledgment is received within 90 days, send the Form 3857 packet to Division of Training and Program Support (DTSP) at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ who will notify DEBS the required acknowledgment has not been received.

Only forward Form 3857 package to SSA when advised by AM HQ Analyst to the following address:

The coordinator will maintain a tracking record of all received referrals, including case status and actions.

Forward a list of cases (CN) closed without an SSA Form 3857 response to the HQ AM Analyst through normal procedures. Submit the list weekly by close of business Friday. If Form 3857 was not sent to SSA, do not include the case on the list.

Examination refers open AIMS cases with a UA Hold (TC 576) to AM as "possible scrambled SSN." (Follow local routing procedures.)

A UPC 177 condition occurs when a module creating transaction attempts to post to the valid segment of an account that has been scrambled. Scrambled indicator 01, 10, 12, or 20 and MFR 08 is present.

The Unpostable Function contacts the UPC 177 0 coordinator by E-fax using UPC 177 as the subject line for assistance in resolving the unpostable condition. See Scrambled SSN Coordinators and IRM 3.13.122.20.2, Unpostable Processing Code 177 Reason Code 0 Research and Referral Process. The E-fax contains information such as TIN, DLN and UPC sequence number. If the DLN is for a:

The AM UPC 177 0 coordinator will maintain a tracking record of all referrals including research results, status and actions.

The AM UPC 177 0 coordinator must make every effort to supply the Unpostable function with information to resolve the unpostable condition the same day contacted.

Form 13708, Mixed Entity/Scrambled SSN Case History Sheet, is required when working a case being sent to SSA for resolution. All account actions, taxpayer contact and SSA contact are required for inclusion on the history sheet. Retain a copy of the completed Case History Sheet with the case. Scan/attach for CII inclusion only the pages of the Sheet that notate actions taken. Retain sufficient information to support the actions taken on the case.

The history sheet should include the following:

Record all research information for all cases not sent to SSA for resolution on the TIN-Related Problem Research Sheet which can be found on the SERP IRM Supplements page.

A NMRG–DUP transcript generates when:

Other computer checks determine if the TIN is correct for the resequenced accounts. These checks may cause the resequencing action to reject.

NMRG–VEST transcripts generate when one or both accounts contain a Retention Register (vestigial) record for the same tax period. When one taxpayer is involved, determine which years are on the Retention Register File and review account information for those years.

When two taxpayers are involved, see IRM 21.6.2.4.4.1.2, NMRG-DUP Two Taxpayers Involved.

A NMRG-576 transcript is issued when a debit module or module with a TC 570 attempts to merge with a module containing a TC 576.

When one taxpayer is involved, contact Examination to see if input of TC 577, to release TC 576, is possible. After the TC 577 posts, see IRM 21.6.2.4.4.1.1, NMRG-DUP One Taxpayer Involved.

When two taxpayers are involved, see IRM 21.6.2.4.4.1.2, NMRG-DUP Two Taxpayers Involved.

NMRG-400 transcripts generate when either account contains a module with a TC 400 freeze (Account Transfer Out), and there is a module with an equal tax period in the other account.

Examine the accounts to determine if an account consolidation is required. If so, take the following action:

NMRG-424 transcripts generate when a resequence fails because one or both accounts contain a module with an unreversed TC 424.

Contact Examination for instructions. If TC 424 is reversed, follow normal NMRG-DUP procedures.

NMRG-930 transcripts generate when:

Reverse TC 930 on the incorrect account.

NMRG-RPS transcripts generate when:

A NMRG-SCRAMBLED SSN (NMRGXXSSN) transcript generates when a resequencing account fails to merge because either the "from" or the "to" account contains an SCI of 01, 12, 13, 20, or 23 and an MFR 08. Reassign the case as SCRM. Refer to the AM Site Specialization Temporary Holding Numbers listing for the appropriate number.

A NMRG-SCRAMBLED SSN (NMRGXXSSN) transcript may also generate when a resequencing account fails to merge because the SSN on the "to" account is equal to the spouse’s SSN in any name line on the "from" account. See IRM 21.6.2.4.2, Mixed Entity Procedures, to help determine if any actions need to be taken.

NMRG-VAL or NMRG-FTHBCR Transcripts generate when either or both of the following conditions are present:

The FTHBC can be found on CC IMFOL with definer "F" . Adjust the FTHBC as appropriate. See IRM 21.6.3.4.2.10.7, First-Time Homebuyer - Adjusting Accounts, and the NMRG - First Time Homebuyer Credit job aid, for additional information.

Follow Erroneous Refund procedures to recover any erroneously refunded FTHBC credits. See IRM 21.4.5.5.2, Category A2 Erroneous Refunds. For more on the FTHBC credit, see IRM 21.6.3.4.2.10, First-Time Homebuyer Credit (FTHBC).

NMRG-TDA transcripts are received initially by Compliance Services Collection Operations (CSCO). Per IRM 5.19.10.5.11.1, Processing NOMRG-TDA Transcript, CSCO reassigns to AM if there is a TC 150 posted on both numbers.

NMRG-TDA transcripts received in AM are worked like NMRG-DUP. See IRM 21.6.2.4.4.1, NMRG-DUP.

UPC 134-3 generates on CC ENMOD when a resequence fails because the "from" account contains a TC 898 within six years of the original offset date.

If the "from" account is not the invalid segment of the "to" account,

If the "from" account is the invalid segment of the "to" account and both accounts have a valid name control, take the following actions:

A one-sided REVAL is a successful merge posted to the invalid side of the TIN. Only one taxpayer is involved.

Input TC 041 with the taxpayer's correct first name line, using the year digit of the most recent module account. This forces the account to the proper segment. See IRM 3.13.5.128, Invalid Segment Bypass (TC 041).

REVAL-DUP transcripts generate when:

These transcripts generate automatically with the quarterly update of the SSA Data tape.

Research the correct and incorrect accounts. If only one taxpayer is involved, take the following action on the incorrect account:

Take the following action on the correct account:

If the taxpayer received a refund under both the correct and incorrect accounts, follow erroneous refund procedures in IRM 21.4.5, Erroneous Refunds.

If a REVAL-DUP transcript generates with two taxpayers involved, follow instructions in IRM 21.6.2.4.4.1.2, NMRG-DUP Two Taxpayers Involved.

A REVAL-VEST transcript generates when a resequence fails and both of the following conditions exist:

Research retention accounts for (valid and invalid for same TIN or on the ITIN and SSN).

When the TC 370 posts and for the same module, only one account has a TC 150:

When TC 370 posts and there is a TC 150 on both the correct and IRSN accounts for the same module, analyze them to determine if an adjustment action is necessary.

Adjust the correct account if the adjustment action is necessary for any other module. This can be done only after the name change, if input, is posted.

A REVAL-576 transcript generates when:

Contact Examination for input of TC 577 to release the TC 576. Take the following action after the TC 577 posts:

REVAL-400 transcripts generate when the file validity to which the account is returned is opposite to the correct account's validity.

Follow instructions in IRM 21.6.2.4.4.4, NMRG-400.

REVAL-424 transcripts generate when a resequence fails because:

After TC 424 is reversed, follow procedures in IRM 21.6.2.4.4, NMRG Procedures.

REVAL-RPS transcripts generate when:

REVAL SCRAMBLED SSN (REVALXXSSN) transcripts generate if the validity of the CN and SSN are opposite the validity of the segment to which it was returned after a failed merge on a scrambled SSN case. Reassign case as SCRM. Refer to the AM Site Specialization Temporary Holding Numbers listing for the appropriate number.

A REVAL SCRAMBLED SSN (REVALXXSSN) transcript may also generate when a resequencing account fails to merge because the SSN on the "to" account is equal to the spouse’s SSN in any name line on the "from" account. See Mixed Entity procedures for help determining if any actions need to be taken. See IRM 21.6.2.4.2, Mixed Entity Procedures.

Take the following actions when you have determined, per IRM 21.6.2.4.6, Tax Year Account Move Conditions Applicable for MXEN, SCRM, SSA2 and NMRG Cases, that it is not necessary to move posted tax account information. Unless specifically noted, the actions listed in this paragraph apply to MXEN, SCRM, SSA2, and NMRG cases. The bullet items listed here are related to the actions required on the "IRSN" .

Take the following additional actions for the tax year(s) to remain posted on the account. These additional actions listed in this paragraph apply ONLY to MXEN, SCRM, SSA2 cases. The bullet items listed here are related to the actions required on the "SSN" .

If there are 180 or more days remaining before the ASED expires, reprocess the return. See IRM 21.5.1.5.5, Processing/Reprocessing CII Tax Returns, and IRM 21.5.2.4.23, Reprocessing Returns/Documents. If reprocessing a return back to it’s original TIN, edit with SPC "B" .

If there are less than 180 days remaining before the ASED expires, refer the return to Statute for a prompt assessment.

If the ASED is expired for the tax year(s) at issue, and move conditions are met, take action to move the tax account information as appropriate. If applicable, initiate a manual account transfer using Form 12810, Account Transfer Request Checklist. See IRM 21.5.2.4.23.9, Moving Assessments.

For general information when the tax year account requires transfer via Form 12810 per the guidelines above, see IRM 25.6.1.9.9.3, Correct Records on Expired Statute Periods. Also see (7) below to expedite the processing and/or prevent delays of Form 12810.

When the tax year account requires transfer via Form 12810, the tax year account must be in debit or zero balance. Accounting rejects any requests where the tax year account is showing or will show, once Form 12810 transfer has been completed, a credit balance. Resolve credit balances, whether as a refund to the correct taxpayer, if allowable, or as a transfer to Excess Collections. Make sure the entity information for the IRSN account has posted and all freeze conditions are resolved prior to sending Form 12810 to Accounting.

If all other statute expiration dates have expired and there is no indication of activity or pending activity on the tax year account, do not move an incorrectly posted tax year if the Collection Statute Expiration Date (CSED) is expired or has less than 10 months remaining before it expires. No additional account moving action is required on these tax years.

See the following IRM sections for proper processing of Form 12810:

Economic Impact Payments (EIP) may be identified by:

Taxpayer A is the valid taxpayer who correctly used the taxpayer identification number (TIN) and is to remain on the valid common number (CN). Taxpayer B is the invalid taxpayer who incorrectly used the TIN and must be reprocessed to their valid TIN, if located, or to an invalid internal revenue service number (IRSN).

If EIP was not issued, continue to the case specific IRM and follow normal procedures.

If EIP was issued, use the table below to determine who received the EIP when the case involves a TIN-related problem.

The filing status from the return used to compute EIP plays an important role in your research and how adjustments are input. Married Filing Joint (MFJ) accounts reflect the transactions on both the primary and secondary tax year 2020/2021 and entity modules. The adjustment on the primary module includes the significant amounts, and the adjustment on the secondary module posts with .00 amounts.
For Joint tax returns, you must:

The CRN(s) used to adjust EIP are determined by the facts and circumstances of the case.

Manual adjustments to EIP when resolving TIN-related problems allows for a "balancing" of the accounts. This includes "moving" the EIP refund from one account/module to another using a credit transfer, and an adjustment for the EIP as part of the account resolution on TIN-related problems.

When inputting manual adjustments for any EIP, use reason codes 214 - 219 shown in IRM 21.6.3.4.2.13.1 (3), Economic Impact Payments - Account Information, as appropriate. When inputting an adjustment using CRN 338 and/or CRN 257, the first two positions must be 000. The same reason codes and CRNs are used for both the negative and positive adjustments.

Generally, adjustments apply to both spouses, and if so, use the CRNs and reason codes (RCs) shown in IRM 21.6.3.4.2.13.1 (3), Economic Impact Payments – Account Information. When these reason codes are used, the system updates the entity transactions (TC 971 AC 199) for both spouses by splitting the adjustment and applying half to each spouse.

Prior to adjusting joint returns, review the TC 971 AC 199/195 amount shown on each TIN. For tax year 2020/2021 the TC 971 AC 199 is systemically generated only when decreasing EIP. If multiple EIP adjustments on the same TIN are needed, input each adjustment separately using posting delay and hold codes to accurately reflect the amount each spouse received.

Reverse the entire EIP adjustment using the same CRNs shown on CC IMFOLA, and RC 214-219 in the third position as appropriate.

Manual adjustments create a systemic TC 971 AC 199 in the entity. The values for the "MISC" field are:

When decreasing EIP, the TC 971 AC 199 entity transaction is systemically generated. When making a positive adjustment to EIP with HC 4, manual input of TC 971 AC 195 entity transaction is required.

For mixed entity (MXEN) cases, follow IRM 21.6.2.4.7.2.1, Mixed Entity EIP Adjustments

For no merge (NMRG) cases, follow IRM 21.6.2.4.7.2.2, No Merge EIP Adjustments.

For scrambled SSN (SCRM/SSA2) cases, follow IRM 21.6.2.4.7.2.3, Scrambled SSN/SSA2 EIP Adjustments.

AdvCTC payments may be identified by:

The account transaction for each AdvCTC payment’s DLN contains a unique sequence number to identify the month for which the payment was issued. Reason Codes (RC) and positions identify the following:

The entity of the taxpayer, and spouse if applicable, contains a TC 971 AC 199 (systemic) or TC 971 AC 195 (manual). The miscellaneous field is displayed in a specific format on CC IMFOLE dependent upon whether a systemic or a manual account adjustment was input. Refer to the table below to assist in identifying the field descriptions.

An AdvCTC TC 971 AC XXX (other than 199) was placed as an entity transaction on CC IMFOLE of taxpayers to indicate specific account conditions. Refer to the table below for a list of the action codes and their descriptions:

Taxpayer A is the valid taxpayer who correctly used the taxpayer identification number (TIN) and is to remain on the valid common number (CN). Taxpayer B is the invalid taxpayer who incorrectly used the TIN and must be reprocessed to the valid TIN, if located; or to an invalid internal revenue service number (IRSN).

If AdvCTC was not issued for any month, continue to the case specific IRM and follow normal procedures.

If AdvCTC was issued for any month, use the table below to determine who received each payment when the case involves a TIN-related problem as each is considered and addressed separately.

The filing status from the return used to compute each AdvCTC plays an important role in your research and how adjustments are input. Married Filing Joint (MFJ) accounts reflect the transactions on both the primary and secondary TY 2021 and entity modules. The adjustment on the primary module includes the significant amounts, and the adjustment on the secondary module posts with .00 amounts.
For Joint tax returns, you must:

Manual adjustments to AdvCTC when resolving TIN-related problems allows for a "balancing" of the accounts. This includes "moving" the AdvCTC refund from one account/module to another using a credit transfer, account adjustments and entity transactions for AdvCTC as part of the account resolution on TIN-related problems.

AdvCTC are adjusted on the TY 2021 module using Credit Reference Number (CRN) 272 with unique Reason Codes (RCs). The same three RCs are used for both the negative and positive AdvCTC account adjustments. Refer to the table below for the required adjustment RCs.

There are two (2) data fields required when making any manual adjustments for AdvCTC payments using CC ADJ54. Refer to the table below for both required fields.

When decreasing the AdvCTC, the TC 971 AC 199 entity transaction "NNNNNNN kktyxxREVCTC" is systemically generated. When making a positive adjustment to AdvCTC with HC 4, manual input of TC 971 AC 195 entity transaction "NNNNNNNkktyxxCTCAD" is required. See IRM 21.6.2.4.8.1 (3), AdvCTC - Account Information and Research.

For Mixed Entity (MXEN) cases, follow IRM 21.6.2.4.8.2.1, Mixed Entity - AdvCTC Adjustments.

For No Merge (NMRG) cases, follow IRM 21.6.2.4.8.2.2, No Merge - AdvCTC Adjustments.

For Scrambled SSN (SCRM/SSA2), follow IRM 21.6.2.4.8.2.3, Scrambled SSN/SSA2 - AdvCTC Adjustments.