This subsection contains instructions for procedures on maintaining the integrity of the Business Master File, by identifying unpostable transactions/conditions that are not compatible with existing master file data or normal Submission Processing Campus operating procedures and their resolution. Entity Unpostables also processes specific documents related to filing requirements of the Business Master File (BMF) taxpayer.

Purpose: This subsection provides Business Master File (BMF) procedures for resolving unpostables using the Generalized Unpostable Framework (GUF). It also provides directions to all individuals who use the GUF to display, research, suspend and close INDIVIDUAL or FILES type unpostable cases. See IRM 3.12.32, Error Resolution - General Unpostables, for a description of INDIVIDUAL and FILES unpostable cases. This subsection also applies to the management of Unpostable processing.

Audience: These procedures apply to Taxpayer Services (TS) Submission Processing Input Corrections Operations (ICO) personnel:

Policy Owner: Director, Submission Processing.

Program Owner: Specialty Programs Branch, Post Processing Section.

Primary Stakeholders: The primary stakeholders are the Tax Examiners (TEs) who rely on the IRM for accurate processing procedures related to the BMF Entity Unpostable program. Other areas that may be affected by these procedures include (but not limited to):

Program Goals: To timely process corrections on unposted cases falling out through the Generalized Unpostable Framework (GUF).

The purpose of this IRM is to provide instructions and procedures for correcting and resolving Business Master File (BMF) Entity Unpostable cases.

The mission of the ENTITY UNPOSTABLE TEAM (EUT) is to resolve all Entity related problems in a timely manner by providing the taxpayer with the highest degree of Quality Customer Service.

The words "NOTE" , "CAUTION" , "EXAMPLE" , and "EXCEPTION" appear throughout the text as a reminder to be careful when following prescribed Entity procedures for case resolution.

When correcting unpostables, the first thing that must be determined is that the unpostable tax return or document AND the Entity on the Master File are the same. Command Codes (CCs) BMFOL, NAMES, NAMEE, ENMOD, INOLE, NAMEB, and NAMEI are used to make this determination.

Completely review the case to resolve all unpostable conditions to avoid REPEAT Entity unpostable conditions.

Integrated Automation Technologies - IAT

To view tax returns electronically filed on Modernized e-file (MeF), users must first request access to the Employee User Portal (EUP).

The following IRMs are referenced in this IRM to assist in the resolution of Business Master File (BMF) Entity Unpostable Correction Procedures.

Tax returns, tax forms, tax publications and other reference material will be identified in each subsection with their complete number and name and then referred to just using the appropriate number.

The following tax returns, tax forms, tax publications and revenue procedures are referenced in this IRM:

The IRS has numerous designated computer-generated letters sent to taxpayers to inform, to request information or to request documents. All IRS letters will be identified by the number and the title in each subsection and then referred to by the number followed by the letter C and then the word Letter, e.g., Letter 319C.

Office of Management and Budget (OMB) Codes are not required when issuing a letter to the taxpayer per 5 CFR 1320.3(h)(6).

The following list are the C Letters that can be used in this IRM:

Before disclosing any tax information, the tax examiner must be sure they are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication, as well as IRM 21.1.3.2.4 Additional Taxpayer Authentication. Also, before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1, Privacy and Information Protection, Privacy Policy. Additional guidance for leaving voicemail messages can be found at IRM 10.5.1.6.7.2, Answering Machine or Voicemail.

Guidelines for sending faxes can be found in the following IRM’s. Guidance listed below must be reviewed prior to faxing confidential information to the taxpayer.

The following caveat is to be used on all cover sheets. "This communication is intended for the sole use of the individual to whom it is addressed and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If the reader of this communication is not the intended recipient or the employee or agent for delivering the communication to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication may be strictly prohibited. If you have received this communication in error, please notify the sender immediately by telephone (collect, if necessary), and return the communication to the address above via the United States Postal Service. Thank you."

IRS employees may never send sensitive but unclassified data by electronic mail to taxpayers, their representatives and/or other non-IRS/Treasury parties, even if the other party uses encryption software. Such action would pose a risk to the taxpayer’s privacy since it would be possible for a third party to intercept taxpayer information and create an unauthorized disclosure, see IRM 1.10.3.2.1(7), Secure Messaging and Encryption.

If the taxpayer files an incomplete form, it is only necessary to suspend the processing of the return once for the missing information. For example, taxpayer files a Form 1120-S, but no Form 2553 is on file. Send the taxpayer a 3853C Letter informing the taxpayer to send in a completed Form 2553 within the required time frame. Taxpayer responds with Form 2553, but Form 2553 is missing information (refer to IRM 3.13.2.23.1 for completeness). Call and request the taxpayer fax the missing information within 2 days. If taxpayer does not reply within 2 days, or no contact can be made with the taxpayer via phone, take the appropriate action to close the unpostable. If Form 2553 is a response to UPC 310 RC 4 and is an incomplete/duplicate Form 2553 refer to IRM 3.13.2.23.7 for returning the Form 2553.

If the taxpayer has marked the "Third Party Designee" or "Paid Preparer Check Box" and has provided a phone number, telephone contact may be made with the third party.

If contact is needed with a taxpayer that is at an international phone number, please refer to IRM 3.42.7.14.7 before completing international telephone calls.

When sending a correspondex letter and Receipt and Control was not required to date stamp the return, determine the received date using the following priorities:

Annotate cases "Per call" when missing information is received from telephone contact.

When returning incomplete documents to the taxpayer, all internal documents must be removed from the enclosure and the IRS received dates will be X'd out in blue ink.

The National Taxpayer Advocate and the Chief, Tax Payer Services (TS) have reached an agreement outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with the TS Division. The agreement is known as a Service Level Agreement (SLA).

In preparation for a case being referred to a TS Division function, the TAS employee is responsible for:

TS Division is responsible for:

For further information, refer to the TS SLA online at Taxpayer Advocate Service - Home (sharepoint.com) selecting Service Level Agreements (SLA) under Tools and Services.

Section 2003(a) of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) amended IRC 6061, to direct the Secretary of the Treasury to “develop procedures for the acceptance of signatures in digital or other electronic form”. Digital or other electronic signatures are now acceptable per IRM 10.10.1. For a list of acceptable forms, please see Exhibit 10.10.1-2. Faxed signatures are acceptable when a taxpayer is responding to an IRS inquiry. Faxed signatures include electronic images of scanned original signatures transmitted by Enterprise Electronic Facsimile (EEFax) or e-mail.

Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

Code and Edit examiners will indicate the fax paragraph on the approved Correspondence Action Sheet, to advise the taxpayers of the option to fax their response.

IRS officials and managers must communicate security standards contained in IRM 10.2, Physical Security Program, to employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing security for the documents, information, and property which they handle in performing official duties.

Employees may access tax accounts using the IDRS only when their official duties require them to do so. Unauthorized accesses to tax accounts, such as accesses made to satisfy personal curiosity or to engage in fraud are prohibited. Employees who make unauthorized accesses to tax accounts are subject to disciplinary action and criminal penalties. All employees are responsible for adhering to the provisions in IRC 1203(b)(4) of the Restructuring and Reform Act (RRA) of 1988, which prohibits IRS employees from falsifying or destroying documents. In addition, employees must adhere to the requirements of IRC 6103, Confidentiality and Disclosure of Returns and Return Information.

This subsection contains information on statute dates. If the Assessment Statute Expiration Date (ASED) is imminent (two months prior to the ASED) notify the manager or work leader and initiate the necessary action to resolve the case.

The ASED is identified by General Unpostable Framework (GUF) and must be monitored to assure that statute does not expire.

The ASED is generally three years after the Return Due Date (RDD) or IRS received date, whichever is later. See Document 6209, IRS Processing Codes and Information, for RDD information.

Example of statute for a timely filed return:

Example of statute for a late filed return:

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

If Unpostables cannot secure or locate a return or document within 10 workdays of the ASED, refer to IRM 3.13.222.35 for procedures.

Whenever the Employer Identification Number (EIN) on the unpostable tax return or document by the taxpayer is changed, use the appropriate letter to notify the taxpayer of the correct EIN.

This subsection contains information on the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, Section 3705(a), and provides identification requirements for all IRS employees working tax related matters.

All IRS employees who communicate by telephone, correspondence, or in person with taxpayers or their personal representatives on tax related matters, are required to provide (at a minimum) the following information:

All Correspondence to taxpayers or their personal representatives must contain a contact telephone number where the taxpayer’s question(s) can be answered, tax examiner title, last name and provide their IDRS Number, Letter System or unique identification number.

Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1, Overview of Publishing Authorities, Roles and Responsibilities, and Organizational Structure. Do NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer-generated must be forwarded to Headquarters for approval. Submit requests for new letters by submitting a PSR through Electronic Publishing, following procedures outlined in IRM 1.17.1, Overview of Publishing Authorities, Roles and Responsibilities, and Organizational Structure and IRM 1.17.3, Tax Products Program. For minor changes or additions to current letters, follow procedures in IRM 3.0.275, Business Results Measures for Submission Processing Functions.

Any unpostable return can potentially 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.

A manual refund (TC 840) is a refund that is issued in cases which the IRS has determined expedited processing is required to 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.

Manual refunds are requested on either Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund.

Initiators of manual refunds or other management designated employee are responsible for monitoring accounts using CC TXMOD until the TC 840/846 has posted. If necessary, refer to IRM 21.4.4 and IRM 3.17.79 for additional monitoring requirements.

In addition, research SERP (irs.gov) for the most current and accurate manual refund Alerts and IRM Procedural Updates (IPUs) on the Servicewide Electronic Research Program (SERP).

Entity Unpostables is only responsible for identifying the need for a manual refund and prioritizing the processing of the case. Please follow chart below for the related return:

There are cases when an input transaction or the unpostable must be cycled to be input at various times.

Transactions post to the Master File (MF) in numeric order except for the following:

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

The Master File will sometimes re-sequence transactions. When this happens, it will be identified on IDRS as "RS" if the account is on IDRS.

EXCEPTION: If a TC 610 or the TC 670 and TC 150 attempts to post in the same cycle, the system will not let the TC 150 repeat. Always cycle appropriately to ensure the TC 610 or TC 670 and TC 150 do not unpost as UPC 399-2. The TC 610 or the TC 670 must post before the TC 150.

Unpostable corrections may require a cycle delay, if the normal MF input cycle is before the corrected unpostable cut off cycle.

The processing time frame for all BMF unpostables directly assigned to Entity Unpostable Team (EUT) or reassigned to EUT, is twenty calendar days from receipt of all necessary documents, (which equals 14 workdays.) See IRM 3.30.123, Work Planning and Control, Processing Timeliness: Cycles, Criteria and Critical Dates, for additional information on processing time frames.

A URC 8 closure should never be cycle delayed.

To reduce the amount of interest paid by the IRS due to untimely processing of tax returns, the Primary TC PJ Amount or Interest Reduction Overpayment Amount will indicate that a refund is due to the taxpayer.

An "Unpostable Case with Interest Free Period Due to Expire" is an alert to resolve the unpostable as quickly as possible.

The unpostable cases (TC 150) with a refund (the amount is shown with a minus sign) due should be monitored and corrected expeditiously to avoid paying interest with the refund.

The interest free period is 45 days after the Return Due Date (RDD) or Received Date or Return Processable Date, whichever is later.

See IRM 3.12.32, General Unpostables, for additional procedures.

Research entities via Command Codes (CC) NAMEB, ENMOD, and INOLE, and use CCs, NAMES,NAMEE, NAMEB, IMFOL, BMFOL and NAMEI, to determine differences in the taxpayer’s name, address, filing requirements, Fiscal Year Month (FYM) or employment codes.

Before applying a return to a different EIN, always compare the return’s deposit history with the deposits posted on Master File for the tax period of the return. For specific locations on applicable returns see chart below:

If research indicates differences between the MF and the unpostable condition then:

If research DOES NOT provide sufficient information to correct the Unpostable Condition (UPC), then contact the taxpayer.

Always research completely to determine if the TIN agrees with the MF.

If the unpostable TIN is incorrect and another TIN is found via research, edit the TIN on the document and close the unpostable with an Unpostable Resolution Code (URC) 6 and send 147C letter is necessary. Refer to IRM 3.13.222.39(13) for correct audit trail.

A Nullification Code must be entered to identify the receiving area for the closed unpostables when closing an unpostable with URC 1, 2, or 8.

Nullification listings are printed for each of these areas based on the nullification code used.

Any cases input by Code and Edit area should be given Nullify-Area Code 02 – Accounts Management.

The nullify area codes are entered on Line 2 in positions 6 and 7 on the CC UPRES screen.

If a nullification code is not entered, an error message will be displayed.

A Nullification code is not needed for URCD.

The nullification code is associated with the originators IDRS employee number. Use the chart in IRM 3.12.32.14.2 to identify the correct Nullification codes. In some Unpostable cases the originator is not present (blank) or is not valid (systemic). If a specific Unpostable code does not have closing instructions for a specific transaction when the originator is present or valid, contact the BMF Entity Unpostable analyst for assistance.

Generally, a taxpayer must request permission from the IRS prior to changing an established tax year accounting period. The filing of their initial return (TC 150) , will establish the Fiscal Year Month (FYM). Transaction codes 053/054/055 are an indication of an FYM change. An approved tax year end is identified by the following:

Partnerships, S-Corporations and Personal Service Corporations must use a required tax year (the same tax year as their owners), usually December 31st, unless a business purpose is established for a fiscal year. This was effective for tax years beginning after December 31, 1986.

Revenue Procedure 2006-46 provides procedures for establishing a tax year other than a required year. Refer to Form 1128, Application To Adopt, Change, Or Retain A Tax Year and to Form 2553, Election by a Small Business Corporation, processing in IRM 3.13.2.21 and IRM 3.13.2.23

IRC 444, Election Of Taxable Year Other Than Required Taxable Year, as added by section 10206 of the Omnibus Budget Reconciliation Act of 1987, allows certain Partnerships, S-Corporations and Personal Service Corporations to elect the use of a taxable year that is not a required year. Refer to IRM 3.13.2.22 for processing the Form 8716, Election To Have a Tax Year Other Than a Required Tax Year.

Certain Exempt Organizations (EO) can change their accounting period under Revenue Procedure 85–58 by filing their tax return, including extensions, on a timely basis. Refer to IRM 3.13.12, Exempt Organization Account Numbers, for instructions on how to process the Form 1128, Application to Adopt, Change, or Retain a Tax Year.

To resolve an unpostable tax return that is assigned to Entity with a remittance, the money must be applied to a tax module.

If the unposted tax return also has an unposted remittance and it cannot be determined where the payment should be applied;

If there is a credit/payment applied to the unpostable tax return module and the return is being removed from processing (DLN cancelled), determine if a manual refund is necessary. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.

If there is an incorrectly applied credit/payment on an unpostable tax return that you are working and you can determine where the payment should be applied, prepare Form 3465 and route to Accounts Management, Adjustments Department for the transfer of any credits to the new tax period. Local procedures on credit transfers can be followed, contact your lead.

Any corrections to the source document should be circled in purple and all written corrections must also be in purple. Close the unpostable tax return appropriately.

If the unpostable is an Exempt Organization (EO) tax return, see IRM 3.12.278, EO Unpostable Resolution, for specific instructions.

These Command Codes are used to research entity and tax data on the Master File.

While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by an IDRS security violation message: "Unauthorized Access to This Account." Forward the case to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to five business days). Once notified access has been granted, the case can be processed following applicable procedures.

Category criteria for Individual Master File (IMF), Business Master File (BMF), and Employee Plans Master File (EPMF).
GUF Category Code B1 includes the following:

In addition to the above conditions, the Unpostable Unit will reassign other cases to Entity Control if the case requires Entity Control resolution. The following are examples:

Generally, the Criminal Investigation and Examination Perfection Sections will not reassign cases to the EUT, instead they will coordinate with the EUT to resolve cases.

All records in Category B1 will be directly assigned to the EUT. Any case assigned to the EUT will be closed by them. Any TC 960, 961 or 962 case with an MFT 00 and a Tax Period 0000 will be closed by the Reporting Agent File (RAF) Section.

A Form 4251 (C) Return Charge-Out, is generated for almost every unpostable record in this category. The EUT is the recipient (receiver) for these B1 Form 4251s. The documents for all B1 file requests will be routed directly to the EUT. No automatic transcripts (MCC/MRS) are generated.

All B1 unpostable cases are INDIVIDUAL closures. These cases should be assigned to a specific employee prior to attempting to close the case. Unpostable Resolution Codes (URC) A, B, D, 0 (zero), 1, 2, 5, 6 and 8 are used to resolve Category B1 cases. Refer to IRM 3.12.32, General Unpostables , for additional information.

Criminal Investigation category cases A1 and A2, Statute C1, C2 and C3 category cases and Bankruptcy (Z1) type unpostable records will not be assigned to the EUT. However, if a case with a Category Code other than A1, A2, C1, C2, C3 or Z1 is assigned or reassigned to the EUT and later it is determined to have criminal investigation, statute or bankruptcy issues, then the case will be processed in accordance with the category A1, A2, C1, C2, C9 and Z1 guidelines and procedures in IRM 3.12.32, General Unpostables.

Cases involving credit interest returns may be assigned or reassigned to the EUT. The EUT will process these credit interest issues per IRM 3.13.2, BMF Account Numbers , and IRM 3.12.32, General Unpostables, unpostable Interest Reduction Initiative Report guidelines.

This category will age ten cycles from original unpostable cycle.

Category Code B3 is for Exempt Organization (EO) Unpostables. Refer to IRM 3.12.278, Exempt Organization Unpostable Resolution, for instructions.

This category will age ten cycles from original unpostable cycle and should be closed by the service center receiving the unpostable.

Unpostable Code (UPC) 801,802, 803, 806, 808, 810, 811, 812, 813, 815, 823, 824, 832, 836, 838, 839, 840, 842, 843, 844, 845, 847, 849, 851, 852, 853, 854, 869, 877 and Master File Tax (MFT) 74.

UPC 324 Reason Code (RC) 3 and MFT 75.

UPC 327 RC 1 MFT 76.

UPC 498 RC 2 MFT 74.

These unpostable codes are processed in the Ogden Campus.

This category will age ten cycles from original unpostable cycle.

Category B5 Criteria (BMF) - Consists of UPC 332, UPC 310 or UPC 329.

MFTs will be 02, 05, and 06.

This category will age fifteen cycles from original unpostable cycle.

IDRS Command Codes (CC) and definers are used to establish or update the Status Code of an unpostable case. The status code identifies what action has been taken on an unpostable case. The status date indicates when this action was taken.

The following is a list of status codes and their definitions.

The status code and status date will appear on line two of the CC UPDIS screen display following the literal ST.

Each unpostable record will be assigned a three-digit unpostable code and a one-digit Reason Code (RC).

SCCF-URC 1 - Each unpostable record that is corrected with URC "1" is placed in manual status on the Submission Processing Campus Control Files (SCCF).

The valid range of Unpostable Resolution Codes are "A" , "B" , "D" , "0" (zero), "1" , "2" , "3" , "5" , "6" , and "8" . These resolution codes ( except for URC 3) may be used by the Unpostable, Entity Control, Examination, Statute, and Criminal Investigation functions when using CC UPRES to resolve cases assigned to their areas.

Never use URC “8” on:

In addition to individual closures using CC UPRES, CC UPBAT, is used for multiple cases using the same Resolution Code.

The system will not accept previously input remarks on a URC “D”, “1”, “2” or “8” closure. Enter a “/” (slash) at the end of the remarks field if previous remarks are still valid with unpostable closure.

The IDRS employee number is not needed in the remarks section. The employee number will automatically print on the Nullified Listing from the URC “D” or “2” closure.

The table below provides some commonly used tax classes on the Business Master file. For additional information see Document 6209, IRS Processing Codes and Information.

Prepare a Form 3893 if it is determined that a document or a group of documents are nullified, DLN cancelled and must be re-input.

This Form is prepared for each 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 input block. Do not detach the Form when processing or filing. Figure 3.13.222-1

Figure 3.13.222-1

This is an example of Form 3893.

Please click here for the text description of the image.

All EFTPS Operations are located at the Ogden Submission Processing Campus.

EFTPS processed the first payment in November 1996. EFTPS will retain information on-line for current year plus 4 previous years.

EFTPS payments have no paper records. The EFTPS DLN is a unique 15-digit number assigned by the financial agent and is researched via IDRS Command Code EFTPS. See IRM 2.3.70, Command Code EFTPS for additional information.

IDRS Command Code EFTPS is not restricted. Command Code EFTPS may be used with any of the following three definers:

To determine whether the payment was made by Direct Debit or Credit Card, research the 4th (fourth) digit of the EFT-TRACE-NUM field to identify the payment method.

Electronic Funds Transfer (EFT) Number - The financial agent assigns a 15 - digit EFT number. The EFT number is a unique identifier and is used to research payments on the master file and IDRS. Do not use the Document Locator Number (DLN) to perform research on EFTPS transactions. The EFT number is configured as shown in the following table:

The BMF FRCs are as follows.

The BMF will update the magnetic tape code to 0 and will generate a CP 199 when a TC 150 posts with a Condition Code F or M, or a TC 591, TC 593 or TC 595 posts and if a TC 01X posts to change the entity.

The Document Locator Number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems.

The DLN is used to control, identify and locate a document.

Always make certain that the DLN on the document matches before making any corrections to Master File (MF) or the document.

Refer to SERP - 6209 - IRM Supplements (irs.gov), IRS Processing Codes and Information Booklet, for the return DLN, tax class and document code.

FORM 4251 GENERATION CRITERIA

Form 4251 — Files Routing Chart—refer to IRM 3.12.32.19.1 for detailed routing information.

Form 4251 and/or ESTAB request should NOT be sent to Files on documents that have been electronically filed. Electronically filed returns can be identified by campus specific File Location Codes (FLCs). Additional information for identifying these returns can be found at the SERP 6209 website. All electronically filed returns can be accessed through the Employee Portal Login.

Primary Requests - The Form 4251 must be given to the tax examiner at the time of the Individual case assignment. Before initiating any additional request for a BMF or PMF document the tax examiner assigned to the unpostable case will attempt to correct the unpostable by the following methods:

Repeat or TE initiated Unpostable - 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 cannot be resolved by the primary request.

Statute Period Returns—If Unpostables cannot secure or locate a return or document within 10 workdays of the ASED, the following procedures should be followed:

Criminal Investigation case—If the document cannot be located and is a Criminal Investigation (CI) case (Category A1 or A2), CI will determine the necessary case resolution after all attempts have failed to locate the unpostable record. Close Category A1 records to Rejects if so determined by CI.

Doc Code 47— If the unpostable record is a Doc. Code 47, research Microfilm Replacement Systems (MRS) and IDRS.

If a bankruptcy (GUF category Z1) case and document is unavailable, process the case per the Category Z1 procedures in IRM 3.12.279.45.1.

Secondary Requests - A second request will be made by the tax examiner if the document initially cannot be located in Files or the Federal Records Center (FRC). Take the following action:

When a BMF or PMF return or document still cannot be located in Files after a second request, or the document is charged-out and it is required for correct case closure, initiate a third request.

Third Request for a Document - A third request is made to obtain the document after 15 workdays (21 calendar days) from the second request. Input CC UPCAS with definer D and definer-modifier 3 to reflect action taken to obtain the missing document.

Input CC ESTABDO to request the document before making a fourth request. A ESTABDO request is made to obtain the document after 15 workdays (21 calendar days) from the third request.

Fourth Request - Input a fourth (4th) request using CC UPCAS definer code D and definer modifier code 4. Route the document to Rejects.

Do not prepare a "dummy" return or document when routing to Rejects except for document codes 17,18 19, 24, 34, 45, 48, 58, 70 or 76.

Status Check - Check if the module/account status has changed since the unpostable record was issued. All IDRS research information must be obtained prior to closing and routing a case to the preparer since this data will eventually be "dropped" .

Procedures for Missing Documents - The following procedures must be followed after all normal attempts to resolve the unpostable conditions have been tried.

Use the following table below to resolve address changes:

Entity Unpostables will not change the address of a taxpayer bearing a Large Corporation Indicator (LCI). See IDRS Command Code Job Aids for CCs ENMOD , BMFOL’I’ and SUMRY for assistance in identifying an LCI. The change of address request (or Form 8822, Form 8822-B) should be routed to the Large Corporation/Technical Team in the respective sites with the message "LCI Address Change" entered on the routing slip. See IRM 21.7.1.4.11.4 Campus Contacts for Large Corp Cases.

If a taxpayer requests an address change during telephone contact regarding an Entity Unpostables issue, you may accept oral authority for the address change. Follow the Oral Statement Documentation requirements in IRM 21.1.3.20.1(3). Rev. Proc. 2010–16 allows address changes over the phone effective June 1, 2010. It is no longer required that the taxpayer have "an open issue" to request an address change over the telephone. The caller must be authorized to request the address change. Put the name, title, and phone number of the caller in the Remarks section of the transaction.

When making an address change from a return, the following information will be entered in the Remarks field of CC BNCHG:

All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction.

See Exhibit 3.13.222-5 and Exhibit 3.13.222-6 for examples of TC 014, also see IRM 3.13.222.112 for undeliverable mail and notices.

When processing foreign address changes refer to Exhibit 3.13.222-11 to determine the Foreign County Code.

When there is an indication of an In Care Of name change refer to IRM 3.13.2.3.8.

Beginning October 2017, Form 8822 and Form 8822-B that have been processed will no longer be destroyed as classified waste in the control team. These documents have a defined retention period and will be stored in the Files Operation in an Alpha File. Each form must be name controlled and contain an audit trail in the lower left margin of the document. Entity Clerical Team will forward all processed forms to Files Operation on a Form 3210 indicating Alpha File. If no action was taken on Form 8822/ Form 8822-B, the document can be destroyed as classified waste in the clerical team.

A Programming Requirement Package (PRP) is the instructions that define how tax returns and tax forms can be processed to the Master File (MF). PRPs are written by computer programmers and program analysts. PRPs are written in a technical format that often requires an extensive knowledge of Submission Processing Procedures, a general knowledge of the various IRS Transaction and other computer type codes and a thorough knowledge of how to research IRS Manuals and other IRS reference material to decipher the meaning of the PRP.

The specific PRPs involving BMF unpostables are found in the Document 6209, IRS Processing Codes and Information Booklet, under the Unpostable Code section.

Each Unpostable Code (UPC) Reason Code (RC) subsection in this IRM will begin with the appropriate PRP followed by a literal translation.

ABLM is not an acronym. The letters are a carryover from when the tax Form 1120 was generic. The letters are defined as follows:

There are still references to the ABLM blocks throughout IRMs, Document 6209 IRS Processing Codes and Information Booklet, Programming Requirements Package (PRP), etc. These references concern specific blocks within the Document Locator Number (DLN) to identify what type of Form 1120 tax return was being filed.

The expeditious processing of refund returns is critical if the 45-day interest free period is about to expire. Also, returns reflecting a refund of $1,000,000 or more should be processed expeditiously. See IRM 3.11.16.4, Refund Returns (45-Day Jeopardy and High Dollar Refunds).

When the unpostable is assigned to Entity Control, the computer will generate a Form 4251 (C) Return Charge-Out out to Files Section for the document.

When correcting unpostables, the first thing that must be determined is that the unpostable tax return or document and the entity on the MF are the same.Various IDRS and research Command Codes (CC) should be used to make this determination. Every document received in BMF Entity Unpostables will be researched to ensure there is only one EIN (or SSN on some documents) assigned to the taxpayer. CCs NAMES/ NAMEE and/or NAMEI/NAMEB will be used to verify the EIN/SSN is correct and no other TIN exists for the taxpayer. Verification of the current filing requirements and fiscal month requirements should be researched before changing the EIN.

Even when the name control and the TIN match an account on the MF, it does not mean the names are the same.

When determination has been made that the MF primary name line is incorrect, make the necessary changes to update the master file. If research is necessary the taxpayer’s correct primary name may be found on the appropriate Secretary of State website. If the correct name cannot be determined, contact the taxpayer. When processing returns, it is not necessary to address minor name differences (for example, INC versus INCORPORATED or Co. versus Company) unless the name control is affected. If the account indicates a Limited Liability Company (LLC), such as an LLC indicator on the account or a sort name line indicating “sole member or member”. Follow the primary name line with "LLC". Additional information on changes to the primary name line can be found at IRM 3.13.2.10.24.

Entity Unpostable TEs are not responsible for deleting duplicate entity information (primary name and sort name and/or mailing address and location address) or abbreviation errors unless they are going into the account to make another entity change.
Update or remove the sort name line (doing business as, dba name) if there is a direct request from the taxpayer, or the name is different, and the return being processed is signed by someone with authorization. Do not add the sort name line (dba), if it is exactly the same as the primary name line. Even if the sort name line is similar to the primary name line, input the sort name (dba). The sort name line is used for research purposes and should be input accurately. For specific entity sort name line information refer to IRM 3.13.2.3.7. Update or remove the in care of (%) name line to perfect the entity. For specific in care of name line information refer to IRM 3.13.2.3.8.

When entering a non-source/source document transaction into IDRS, the Remarks field of CC BNCHG/INCHG must contain a description of the type of case being processed, beginning with NSD/SD. For example, if changing a name from a return, enter NSD, the MFT and TXPD in the Remarks field.

Completely review and resolve ALL unpostable conditions which could result in a repeat unpostable condition, including LLCs, FYM, Subchapter S status, Corporations with an LLC indicator, etc. Update the account as needed to perfect the entity including FYM, FR, name and address, LLC indicator, etc. All repeat unpostables will generate back to the originator. If the repeat unpostable is not an entity problem and cannot be resolved by the Entity function, then reassign the unpostable to the Unpostable Unit.

When corresponding with the taxpayer, use the appropriate letter that accurately addresses the taxpayer’s situation and always use the selective paragraphs that are available in the correspondex letters before using open paragraphs. For example, do not use a Letter 385C to inform the taxpayer of their valid EIN or denied/rejected election. Do not use a Letter 147C on any election issues. Refer to IRM 3.13.222.5.

When replies to any correspondence are received TEs must perform complete review of the information provided by the taxpayer and process according to the specific unpostables procedures. If the taxpayer sends the reply to the incorrect campus, the campus receiving the reply will work the response. Before processing an unpostable case for "No reply" research for the current case on IDRS.

If research determines there is another unpostable with the same MFT and TXPD located at another Campus (or within the same campus) and a suspense letter has been sent, do not correspond again. Research via command code UPTIN (UPTIN@02, UPTIN@09, or UPTIN@04, etc.). Suspend for 45 days from the date the letter was sent and purge the document according to the specific unpostable procedures. If the case has been closed within the past 30 days as a No Reply, purge the case accordingly. If the case was closed over 30 days and is not a repeat continue processing to the specific unpostables procedures.

When correcting the unpostable and a change to name control, TIN, Tax Period, is required, always show the change on the unpostable document, not on the Form 4251. Any corrections to the source document should be circled in purple and all written corrections must also be in purple. Close the unpostable tax return appropriately. When a payment is moved to another EIN, MFT, Tax Period, etc. notate the change in RTR (Remittance Transaction Research System).

The actions taken to work and resolve the unpostable document should be annotated in the lower left corner of the document. It is not necessary to edit the Unpostable Resolution Code (URC) on the case. If additional actions are needed by another area for processing, route documentation to the appropriate area and annotate routing actions in the lower left-hand corner of the Unpostable document. If a form is attached to the unpostable document that needs to be routed to another area for processing, detach the form and route to the appropriate area and annotate actions in lower left-hand corner of the unpostable document. Form 1128, Form 8716, Form 8832 and Form 2553 should be processed in Entity Unpostables. Annotate that the form(s) were detached on the unpostable return and edit the forms for processing. Edit tax period on prior year returns. An audit trail containing the TEs IDRS number, date of TCs input, annotate if a letter is sent and if a specific PSC is used. The audit trail should be placed in the lower left margin of the document. The audit trail must be legible. The following applicable format will be used:

When working MeF Returns and the DLN has to be cancelled use the Form 4251, Return Charge Out or an UPRES screen print as the documentation to send to Rejects. Use the appropriate routing slip and request Rejects to "Cancel DLN " . Do not print the return.

When the unpostable has to be converted/re-numbered, print the applicable pages of the return to send to Rejects. Enter the IRS received date shown on the Employee User Portal (EUP) on returns filed via MeF. Edit the received date in the middle of the first page of the Form. DO NOT edit the received date over taxpayer data.

If the unpostable return requires a change to the TIN, MFT and/or TXPD and it is determined the payment is posted incorrectly, then have the payment moved to the corrected TIN, MFT and/or TXPD. Refer to IRM 3.13.222.22.

It is the unit managers responsibility to monitor the assignment of work to tax examiners. Unit Mangers will ensure work is distributed at their discretion in order to maintain appropriate age listing guidelines. The cases assigned to each tax examiner will be printed on a Daily/Weekly Employee-Assign-Aged List.

Repeat unpostable cases should be reviewed weekly to ensure proper handling. Repeat volumes should not exceed 10 percent of the current week’s receipts. Additional information regarding acceptable repeat volumes can be found at IRM 3.30.123.2.4.4.

If the unpostable is an Exempt Organization (EO) tax return, see IRM 3.12.278, Exempt Organization Unpostable Resolution, for specific instructions. All unpostable cases received by a specific campus will be worked by that campus.

BMF Entity Unpostables are required to work all Category Codes B1 and B5 even if there is an EO section on the account. Whenever it is determined that the EO section is not correct, contact the EO Entity section before any changes are made to the EO account, complete the corrections to update the MF to prevent future unpostables. If the EO status code is 20, 22, 41, 70, 71, 97, or 99 the EO status is invalid and the case should be resolved in BMF Entity Unpostables.

All related unpostables that have unposted at the same time, should be worked at the same time within the service center received.

The Correspondence Received Date (CRD) is entered in the lower left corner of the return in YYYYMMDD format, and may also be notated on the Unpostable Routing Slip. When a late reply is received and the return is being sent to Batching for processing, the Correspondence Received Date (CRD) will be edited on the return.

When re-establishing a DLN after it has been deleted and the original return was an e-Filed (Mef) return, the return must be renumbered because the e-Filed (Mef) DLN cannot be re-established. Print the entire return from EUP before sending for reprocessing.

If a Form 8821 or Form 2848 is received with an Entity form (and other returns are indicated), photocopy the document, write COPY in the center of the document and forward the original Form 8821/ Form 2848 to the CAF Team. The photocopy of Form 8821/ Form 2848 should remain attached to the Entity form (annotate copy POA to CAF). Also, the POA should receive a copy of any correspondence that is part of the case resolution.

The Detroit Computing Center is assigned an ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for the sole purpose of providing the “Payer” EIN on Form 1099-INT statements issued by IRS to taxpayers who have received interest on their federal refunds. The Detroit Computing Center is not a “true” taxpayer account entity. Do not input a TC 012 or post payments or returns to this account. Refer to SERP Alert 12A0279.

BMF Entity Unpostables will receive information on open UPC 310/329 cases from BMF Entity to ensure these are processed correctly. Refer to IRM 3.13.2.7.1.13.

If a state law corporation chartered in one state changes the state in which it is chartered (e.g. through a state law continuance statute or state law merger directly into a newly formed state law corporation) the resulting state law corporation should use the EIN of the terminating corporation.

Returns, forms, correspondence and direction from the taxpayer regarding their account will be accepted prima facie. Prima facie means upon first examination the matter appears to be self-evident. You should generally accept a taxpayer’s return, forms, correspondence, and directions regarding their account, unless there is a reason that these documents and direction should be rejected.

Limited Liability Companies (LLC) must be examined for a valid Entity Classification Election (Form 8832) to be approved to file as a corporation. A Form 1065 should not be filed when an approved Form 8832 (TC 076) is on file with PSC A/FOE 1. An entity considered LLC may unpost as a UPC 307, UPC 310, UPC 329, or UPC 331 and must be examined to determine the appropriate filing requirement to accurately resolve the unpostable. If the LLC indicator is incorrect or not on the account update the LLC indicator per IRM 3.13.2.26. Update the account as needed to perfect the type of entity.

A personal service corporation is a type of corporation where substantially all of the activities involve the performance of services in the field of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, and substantially all of the stock of which is owned by employees who had performed the services, any estate of any individual who had performed the services listed above, or any person who acquired stock of the corporation as a result of the death of an employee or retiree described above, if the acquisition occurred within 2 years of death. Refer to Pub 542, Corporations, for additional information.

When approving or denying an election such as a Form 2553 or Form 8832 use the paragraph selection code Z to suppress the notice if the other selected paragraphs are not appropriate and a letter needs to be sent.

When ESIGNing an EIN to Form 1120, Form 1120-S, and Form 1041, and the return is claiming a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter CCC ‘E’ on the return. This will place the return in a Return Integrity and Verification Operation (RIVO) filter for fraud monitoring. If an EIN must be assigned to a Form 1120-S, NIC D will be input. Send Letter 147C to the taxpayer to notify them of the EIN assignment, asking them to complete and return a Form SS-4. Also, tell the taxpayer that they will be contacted separately regarding their Form 2553.

A return is not considered filed for overpayment interest computation purposes until the return is received in processable form.

A return is in processable form if it:

If the requested information is received after the return due date, the return is processed with a" Return Processable Date (RPD)" reflecting the date the information was received. This date is also known as the " Correspondence Received Date (CRD)." The CRD is used to calculate interest the IRS owes on refunds.

The Correspondence Received Date (CRD) is entered in the lower left-hand corner of the return in YYYYMMDD format, and may also be notated on the Unpostable Routing Slip. When a late reply is received, and the return is being sent to Batching for processing, the Correspondence Received Date (CRD) should be edited on the return.

International returns are only processed at the Ogden Submission Processing Center.

The following list of forms has been identified as potential BMF International Forms:

A foreign address is any address that is not in:

Beginning January 2007 FLC 60 and 78 will be the valid BMF International FLC for processing at Ogden.

Kansas City will be responsible for processing the following International returns:

There were no Filing Location Codes available for the KCSPC site. A blocking range of 990-999 has been specified for the Form 706 and Form 709 series.

The basic requirements and procedures for processing unpostables apply to the processing of International returns. Any specific procedures for correcting International unpostables can be found within each Unpostable Code and Reason Code in this IRM.

International Guidelines If an unpostable Form 1065 or Form 1041 indicates a foreign address for the partnership, estate or trust, route the case to OSPC as an International return.

The Programming Requirements Package (PRP) for UPC 301 RC 1 states:
An input (non-generated) transaction coded other than 000, 019, 141, 142, 650 (document code 97, 19 (EFTP)) for MFT 01/03/14/16, 990, 991, 992, 993, 996 or other than a TC 150 (with entity information addressing a Form 706/ Form 709 module) failed to match on TIN with an account on the BMF.

These unpostables will be received as reassignments from the unpostable function when research has not located another EIN for the name shown on the unpostable document.

The following chart lists different scenarios that will help resolve UPC 301 RC 1:

Figure 3.13.222-3

This example is for the input of a TC 000.

Please click here for the text description of the image.

Figure 3.13.222-4

This is an example of an UPRES Screen for UPC 301 RC 1, Account Not Present.

Please click here for the text description of the image.

EO Documents and Returns refer to IRM 3.12.278, Exempt Organization Unpostable Resolution.

The Programming Requirements Package (PRP) for UPC 301 RC 2 states:
TC 150 for Form 706 (MFT 52) or Form 709 (MFT 51) attempts to establish an account and the input TC 150 does not contain significant Name Line/Mailing address data.

UPC 301 RC 2 condition occurs when a Transaction for Form 706 series, (MFT 52, 77,78) or Form 709, (MFT 51) attempts to establish an account and the input TC 150 does not contain significant name line and mailing address data.

The following chart list different scenarios that will help resolve UPC 301 RC 2:

The Programming Requirements Package (PRP) for UPC 302 RC 1 states:
A TC 000 matched an existing entity on TIN.

A TC 000 (Entity Create) attempting to post and it matches an EIN already on the BMF.

Transaction Code 000, Document Code 80 will be assigned to the Entity Control function by the computer system.

The unpostable record will be an IDRS transaction record (computer-generated Form 5147).

Transaction Code 013 or 016, Document Code 80, for posting to the BMF for EO Accounts, DLN blocking series 990–999, will be sent to the appropriate area.

Before this unpostable can be resolved use CC ENMOD/INOLE to compare the name and address on unpostable document with the name and address on the BMF and to determine if there is already an EO Section on the BMF.

The following chart lists different scenarios that will help resolve UPC 302 RC 1:

The Programming Requirements Package (PRP) for UPC 303 RC 1 states: A transaction with Document Code not equal to 80/81 (except TC 150 for MFT 36/50/53/63 other than TC 001, 019, 14X, 650 (Document Code 97/19 (EFTP)) for MFT 01/03/14/16, 796, 90X, 99X but coded greater than 000 failed to match on three out of four positions (using the Proximal Method) of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions (Proximal) 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.

These unpostables will be received as reassignments from the unpostable function, when a determination cannot be made as to whether the entity on the BMF and the entity on the unpostable document are for the same taxpayer or assigned in B1 Categories, if the unpostable transaction code is 960, 961 or 962 with a MFT 00 and Tax Period 000000 (RAF).

Assign transaction codes 960, 961 and 962 with MFT 00 and Tax Period 000000 to the RAF function.

Do the following for unpostable resolution for NON EO Documents and returns. Figure 3.13.222-5

Figure 3.13.222-5

This is an example of UPC 303 RC 1, for Non-EO Documents and returns

Please click here for the text description of the image.

Figure 3.13.222-6

This is an example of an UPRES Screen when the correct EIN is found.

Please click here for the text description of the image.

Figure 3.13.222-7

This is an example of an UPRES Screen for UPC 303 when an EIN is not on master file.

Please click here for the text description of the image.

If the unpostable is correct, the transaction UNPOSTED because the name control has been changed several times since the input validation. All entity transactions (TC 0XX) will post before a TC 960, 961, or 962.

If the name changes have taken place since validation, the RAF will also need to be changed.

The Programming Requirements Package (PRP) for UPC 303 RC 2 states: TC 650 (document code 97, 19 (EFTP)) for MFT 01/03/14/16 failed to match on three out of four positions of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions (Proximal) 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 which has re-sequenced 4 cycles or the 23C date is equal to or later than the end of the tax period. The UPC 303 RC 2 are referred to BMF Entity Unpostables from BMF Unpostables if the contact information is for a Limited Liability Company, please refer to IRM 3.12.279.58.

The Programming Requirements Package (PRP) for UPC 303 RC 3 states: A transaction (except TC 150 for MFT 36) with doc code 80/81/50/53/63 other than TC 001/019/14X/796/90X/99X but coded greater than 000 failed to match on all four positions of the Entity Name Control, Name Control, 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. The UPC 303 RC 3 are referred to BMF Entity Unpostables from BMF Unpostables if name change is needed for a Limited Liability Company. Please refer to IRM 3.12.279.59 .

The Programming Requirements Package (PRP) for UPC 307 RC 1 states:
The fiscal month of Form 1120, Form 1041, Form 1065, Form 1120-C, Form 990-T, Form 990, Form 990-PF, Form 1041-A, Form 5227, Form 3520, Form 3520-A or Form 8804 input transaction attempting to establish a tax module did not match the Fiscal Month of the account entity and it was not a transaction coded 150/290 (B.S. 4XX)/460 (MFT equals 05/06/08/37/44/67)/ISRP/Lockbox) 610/620/650/660 (MFT equals 02/05/33/34/44)/670 (MFT equals 08) nor TC 424 Push Code 036 with entity FYM equals 0 trying to establish the first Form 1120, Form 1041, Form 1065, Form 990, Form 990-C, Form 990-T, Form 990-PF, Form 5227, Form 1041-A, Form 3520, Form 3520-A or Form 8804 tax module, was not a TC 150 containing Condition Code F or Y or was not a TC 620 with Condition Code W. Reference 5.02(6) (d). Exception for RPS/ISRP/Lockbox TC 610: allow to re-sequence up to two cycles prior to unposting.
Reason Code 1 occurs when the input transactions Fiscal Year Month (FYM) of the Forms (in the table below), is attempting to establish a tax module but did not match the Fiscal Year Month of the Entity account.

Below are additional accounting periods taxpayers can elect to file with outside of the typical calendar year:

Unpostable for MFT 02 (Form 1120-C), 34 (Form 990-T), 37 (Form 5227), 44 (Form 990- PF) and 67 (Form 990) will be assigned directly to Entity Unpostable Team.

This unpostable code will be reassigned from the unpostable function for MFTs other than 33, 34, 37, 44 or 67 for the following reasons:

When the case is transferred from the unpostable function it will be annotated with the reason and any research that has been performed will be attached.

Section 806 of the Tax Reform Act of 1986 generally requires that all S-Corporations, partnerships, and personal service corporations conform their tax years to the tax years of their owners, (usually December 31).

Revenue Procedure 2006-46 (except as provided in Section 4.02) applies to the following:

IRC 444 allows certain partnerships, S-Corporations and personal service corporations to elect the use of a tax year that is not a required year. Refer to IRM 3.13.2.23.8 and IRM 3.13.2.22.

Common Trust Funds are not technically partnerships, but file their tax returns on Form 1065; however, IRC 584 as amended by the 1988 Act, requires that the taxable year of a Common Trust Fund be the calendar year for tax years beginning after December 31, 1987.

Form 1041, U.S. Income Tax Return for Estates and Trusts, is filed by taxable Estates and Trusts. An estate is not required to adopt a calendar year. A taxable trust must adopt a calendar year. See Code644(a). However, a trust exempt from income taxation under 501(a) or 4947(a)(1) is not required to adopt a calendar year. See Code 644(b). These entities file a Form 990 or Form 990-PF. If these entities have unrelated business income, they are also required to file a Form 990-T.

Form 5227, Split-interest Trust Information Return, is filed by a taxable trust described in 4947(a)(2). This type of entity is required to adopt a calendar year.

Request a credit transfer of all claimed and unclaimed credits to the correct tax year using Form 3465 or local procedure.

Form 1120-S and Form 1065 will be assigned to Entity Unpostable Team.

The following chart list different scenarios that will help resolve UPC 307 RC 1:

UPC 307 Resolution RC 1 Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.

UPC 307 Resolution RC 1 Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner.

UPC 307 Resolution RC 1 Form 8804, Annual Return for Partnership Withholding Tax (IRC 1446):

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.

The Programming Requirements Package (PRP) for UPC 307 RC 4 states: TC 150 (document code 16) for MFT 02 attempting to establish the first MFT 02 tax module and the tax period month does not match the entity Fiscal Year Month.

This unpostable is to verify the tax period for the first return filed when it is a Form 1120-S. The "S" election is made on Form 2553 and is accepted with an input of a TC 090.

A IRC 444 election may be made by an electing (not an existing) S-Corporation on Form 8716 to have a tax year other than a required tax year (September, October or November). TC 055 identifies the election on the BMF.

The following chart list different scenarios that will help resolve UPC 307 RC 4:

The Programming Requirements Package (PRP) for UPC 307 RC 5 states:
TC 150 for MFT 06 or TC 150 (document 16) for MFT 02 with tax period month other than 12 matching on entity Fiscal Year Month and a TC 054/055 is not posted. Bypass on corrected UPC 307–5.

A UPC 307 RC 5 is caused when a return (TC 150) attempts to post for a MFT 06 (Form 1065) or for a MFT 02 (Form 1120-S) with a FYM other than 12, and:

Research the unpostable EIN for TC 054/055 and do the following:

Form 1065 partnerships, other than Common Trust Funds, generally have one or more "majority partners" . To determine the majority partner, review the box J on the Schedules K-1 attached to the Form 1065. If the ending percentage shown on the Capital line exceeds or equals 50 percent and all other Schedule K-1's attached are less than 50 percent, the partner is considered the majority partner. However, if the Schedule K-1 specifies all partners within the partnership have an equal share (i.e., 3 partners each with 33¹/₁ percent), each partner is a majority partner. Alternatively, review Schedule B-1.

A partner's share of capital is defined as the portion of capital the partner would receive if the partnership were liquidated at the end of the year by the distribution of undivided interests in the partnership assets and liabilities.

If the Schedules K-1s are not attached or the line listing the partner's share of ending capital is incomplete, contact the partnership to determine if there is a partnership agreement, and whether the agreement states the percentages each partner is entitled, which should have appeared on the that line.

The Programming Requirements Package (PRP) for UPC 307 RC 6 states: All TC 150 for MFT 02 (exclude doc code 16) (Form 1120-S) with tax period month other than 12 not matching on entity Fiscal Year Month, Form 1120 FRC is 19 for Personal Service Corporations, and TC 054/055 is posted. Bypass on corrected UPC 307 RC 6.

TC 150 for MFT 02 with document code 09/10/11 and ABLM Code 400 (Form 1120 PSC only) with a tax period month other than 12 and the Form 1120 FRC does not equal 19. Bypass on corrected UPC 307 RC 6.

TC 150 for MFT 02 with document code 09/10/11 and ABLM Code 400 with a tax period month other than 12 and the Form 1120 FRC is other than 19.

See Exhibit 3.13.222-2 for an example of BRCHG Screen for TC 054.

The following chart lists different scenarios that will help resolve UPC 307 RC 6:

The Programming Requirements Package (PRP) for UPC 307 RC 7 states:
TC 150 with Condition Code Y or TC 620 with Condition Code W not matching on entity Fiscal Year Month with input FYM not equal to 12 attempting to post with TC 054/055 posted. Bypass on corrected UPC 307.7.

The following chart lists scenarios that will help resolve UPC 307 RC 7.

This section is reserved.

Verify that the employment code (EC) is correct, see IRM 3.13.12.6.28 for assigning employment codes.

To verify Employment Code "G" or "T" contact the Social Security or State Retirement Officer.

To verify Employment Code "W" , use CC INOLE or ENMOD and determine from the EO section if the "W" is correct.

To verify Employment Code "C," a TC 070 must be posted. A REV EMP C transcript will generate if the taxpayer files a Form 941 and pays FICA taxes.

To verify Employment Code "F" , contact the taxpayer to determine if the "F" is correct.

BMF Entity Unpostables is not able to add or change ECs F, G, or T. If an entity needs action on one of these ECs, submit to Federal State Local Government (FSLG) by:
emailing to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

The Programming Requirements Package (PRP) for UPC 308 RC 4 states:
Any return (TC 150 - non-document code 51) input to Form 940 tax module (MFT 10) and the entity Employment Code equals "G" . Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has 0 Total Tax Settlement.

A Form 940 attempts to post and the Employment Code is "G" .

The following chart list different scenarios that will help resolve UPC 308 RC 4:

Figure 3.13.222-8

This is an example of an UPRES Screen, UPC 308 RC 4, when the taxpayer is not liable for FUTA.

Please click here for the text description of the image.

The Programming Requirements Package (PRP) for UPC 308 RC 5 states:
Any transaction except TC 370 (Doc Code 51) and TC 650 (Doc Code 97, 19 (EFTP) input to establish a MFT 10 tax module (see 5.02 (6) (f)) and the entity Employment Code (EC) is "T, W, F, G, or C" . Bypass this check on a corrected UPC 308 RC 5 with EC "W" . Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has 0 Total Tax Settlement.

The following chart lists different scenarios that will help resolve UPC 308 RC 5:

Figure 3.13.222-9

This is an example of an UPRES Screen for UPC 308, when taxpayer is liable for Form 940.

Please click here for the text description of the image.

The Programming Requirements Package (PRP) for UPC 308 RC 8 states:
Any MFT 01 TC 150 with Computer Condition Code T if the entity Employment Code is "F" .

The Form 941 with Computer Condition Code T attempts to post, the Employment Code is "F" and the 941 FRC is 00/01/02/03/04/51/06/07/11/12/13.

Form 941 filers who have employees on a seasonal or intermittent basis can file their Form 941 on a seasonal/intermittent basis. However, at least one return must be filed every year, even if no wages or distributions were made during that year.

Condition Code "T" identifies these filers.

Seasonal/intermittent taxpayers who fail to check the box on the Form 941 will be changed back to normal Form 941 filers.

Federal agencies cannot file Form 941 on a seasonal/intermittent basis.

The following chart lists different scenarios that will help resolve UPC 308 RC 8:

The Programming Requirements Package (PRP) for UPC 308 RC 9 states:
Any transaction input to establish an MFT 10 tax module except TC 650 (Doc Code 97/19 (EFTP)) if the Entity Employment Code is blank, the entity EO Status is 01 through 19, and the Entity EO subsection is 03/ 50/60/ 70. Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has zero Total Tax Settlement.

Any transaction attempting to establish a MFT 10 tax module and the EO subsection is 03, 50, 60, or 70 and the EO status is less than 20 with no employment code.

The following chart lists different scenarios that will help resolve UPC 308 RC 9:

The Programming Requirements Package (PRP) for UPC 310 RC 1 states: A TC 090 input, or MFT 02 TC 150 (Doc Code 16) return carries a significant S-Corp effective date, and Form 1120 FR code is 03 or 04.

The following chart lists different scenarios that will help resolve UPC 310 RC 1: