Non-Master File (NMF) accounts are a collection of revenue accounting transactions whose sole purpose is to provide a means for the assessment of taxes and collection of revenue.

Non-Master File processing provides an essential outlet for the Master File Automated Data Processing (ADP) system.

Non-Master File assessments (IRC 6201) are made as remainder assessments. The term Remainder Assessments means that any credits previously assessed such as Withholding (previously assessed on the Form 941, Employer's Quarterly Federal Tax Return), Estimated Tax Credits (previously assessed on the Declaration of Estimated Tax), Gasoline Tax Credits (previously assessed on the Form 720 return) etc., are used to reduce the liability prior to assessment. The remainder amount is then the assessment amount.

Supplemental assessments (IRC 6204) of tax liability plus penalties and interest are determined by Accounts Management, Collection, Appeals, Tax Exempt/Government Entities (TE/GE) or by the Examination function. Returns with an additional assessment determination will bear a Form 2859, Request for Quick or Prompt Assessment, or Form 5403, Appeals Closing Record, Form 5344, Examination Closing Record, Form 5599, TE/GE Examined Closing Record, Form 5650, EP Examined Closing Record, Form 5734, Non-Master File Assessment Voucher, Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties, etc. The source document will indicate the tax liability to be assessed plus any interest or penalties to be assessed and will show the assessment document locator number (DLN).

Over-assessments may be determined by Adjustments tax examiners, the Examination function, TE/GE or Appeals. Over-assessments are declared when it is determined that the total correct liability is something less than the previously determined total liability.

When an over-assessment is determined, priority for application of the credit created by the over-assessment will be as follows:

Overpayments occur in Non-Master File when the total payments received from the taxpayer exceed the assessed amounts on the account including any accruals to be assessed. Overpayments will result in an account with an outstanding credit balance.

Priority for application of the credit created by the overpayment will be as follows:

Refund Check Cancellations

Undelivered Refund Checks

Certified Transcripts

26 U.S. Code 1362 - Election; revocation; termination

26 U.S. Code 4103 - Certain additional persons liable for tax where willful failure to pay

26 U.S. Code 4081 - Imposition of tax

26 U.S. Code 5881 - Greenmail

26 U.S. Code 5891 - Structured settlement factoring transactions

26 U.S. Code 6201 - Assessment authority

26 U.S. Code 6204 - Supplemental assessments

26 U.S. Code 7508 - Time for performing certain acts postponed by reason of service in combat zone or contingency operation

26 U.S. Code 7804 - Other personnel

The Submission Processing Director oversees the policies in this IRM and approves and authorizes the issuance of this Internal Management Document.

The Accounting Operations Manager ensures that all guidelines are followed in all Accounting IRMs.

The Non-Master File (NMF) Manager oversees the NMF team to ensure that guidelines in this IRM are followed.

The NMF employees input to the ANMF system. They original entry (OE) and key verification (KV) all NMF assessments, input of all subsequent payments, research and issue of NMF notices, work the credit balance accounts, and all daily, weekly and monthly reports.

The NMF Account Specialist provides technical assistance in complex NMF issues, serves as NMF education coordinator, a classroom instructor, and an NMF TAS and Congressional case coordinator. See IRM 3.17.46.14, NMF Account Specialist, for more information on the duties and responsibilities of the NMF Account Specialist.

The Database Administrator (DBA) is the expert on technical matters related to the ANMF system and other NMF applications. They must have a thorough knowledge of NMF principles and maintain the integrity of the ANMF system at all times. See IRM 3.17.46.15, Database Administrator (DBA), for more information on the duties and responsibilities of the DBA.

In accordance with Management Accountability Review (MAR) regulations, managers are responsible for ensuring that internal controls are effective and efficient in day-to-day operations and safeguard against waste, fraud, and abuse. Operational or management control reviews are conducted to identify weaknesses and mitigate known risks within the managers realm of responsibility.

Managers must also perform program or Spot reviews of incoming work for accuracy and completeness. Problems identified should be discussed with the proper functional area for corrective action.

Separation of duties is necessary to maintain the integrity of the NMF database. Key duties and responsibilities in authorizing, processing, recording, and reviewing transactions are separated among individuals. Duties need to be divided or segregated among different people to reduce the risk of error or fraud. No one individual should control all key aspects of a transaction or event.

An Inventory Report must be submitted to the ANMF Headquarters Analyst on a weekly basis. This report must be submitted on the first business day of each week, and will include inventories for all NMF programs. The report will provide a beginning inventory for the weekly period, receipts and closures, and an ending inventory.

Federal Government Accounting Requirements: 31 USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency and states that the head of each executive agency will establish and maintain systems of accounting and internal control that provide:

These systems must conform to the accounting principles, standards, and related requirements, as prescribed by the Comptroller General of the United States (U.S.). These are reflected in the Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies.

The accounting system of an executive agency or any of its parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize and simplify accounting systems in the federal government are exercised under a joint program sponsored by the Comptroller General, the Secretary of the Treasury and the Director of Office of Management and Budget (OMB). This program contemplates the full development of sound accounting within each executive agency as a working arm of management and in terms of financial information and control. It envisions an integrated pattern of accounting and financial reporting for the government that is responsive to executive and legislative needs.

The established accounting and reporting principles, standards and basic procedures take into consideration the various areas of responsibility involved, the elimination of overlapping operations and paperwork and the broader application of efficient methods and techniques in accounting operations throughout the government.

Service officials and managers must communicate privacy and security standards to subordinate employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing privacy and security for the documentation, information, and property which they handle in performing official duties.

When using IDRS, only access those tax modules required to carry out your official duties. All IDRS accesses are recorded for immediate review and to determine the accuracy of an adjustment. Any unauthorized access or browsing of tax modules by employees to satisfy personal curiosity or for fraudulent reasons are prohibited by IRS and are subject to disciplinary actions and/or dismissal from the Service.

While using IDRS for NMF processing (notices, transcripts, return, etc.), NMF employees may come across some that are blocked on IDRS and can be identified by an IDRS security violation message, "Unauthorized Access to This Account." Forward the documentation (notice, transcript, return, etc.) 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 documentation in a file awaiting access (can take up to 5 business days). Once notified access is granted, the account can be worked following applicable procedures.

Sensitive But Unclassified (SBU) data including Personally Identifiable Information (PII) and tax information, must be protected with encryption and/or access controls, limiting access only to approved personnel with a need to know. Refer to IRM 10.5.1, Privacy and Information Protection, Privacy Policy for guidance on protecting and safeguarding the privacy of SBU data regardless of its format and when transmitting through email or Enterprise Electronic Fax (EEFax) system.

ABATEMENTS: To reduce an assessment of tax, penalty, or interest, when determined the assessment is incorrect. Abatements require the signature of the Certifying Officer and are supported by the legal document: Form 2188, Voucher and Schedule of Overpayment and Overassessment.

ABSTRACTS: The detailed breakdown of revenue receipts within the 7 major tax classes, particularly within the Excise Classification. Abstracting identifies the specific type of tax collected and directs it to the proper appropriation account set by Congressional Act.

ADVANCE PAYMENT: A payment made for an expected predetermined deficiency prior to the actual additional tax assessment.

ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES (ATF): A bureau within the Department of Justice with responsibility for monitoring the manufacture and sale of Alcohol, Tobacco, Firearms, and Explosives.

AREA OFFICE: An office of IRS located in a principal city for each state.

ASSESSMENT: Amount of tax, fees, interest, or penalty charged to a taxpayer.

ASSESSMENT CERTIFICATE: To impose a tax as authorized by the Internal Revenue Code. Assessments are supported by a summary record of assessment signed by an appointed assessment officer.

AUDIT TRAIL: Control of source documents, cross-reference from one type of action to another to provide a means for retrieval.

BALANCE DUE: Amounts of tax, interest, penalty and/or other receivables that remain unpaid.

BANKRUPTCY: When a discharge of debt is granted by the court, it relieves the debtor of any personal liability of the debt. A discharge does not affect all debt. In joint liability cases, if only one spouse is discharged of the debt then the other is not affected by the discharge and remains liable.

CALENDAR YEAR: Twelve consecutive months ending December 31.

COMMAND CODE (CC): A five or six-character code used to initiate contact with IDRS.

COMPUTER PARAGRAPH NOTICE (CP): A computer generated message, which generates a notice resulting from an analysis of the taxpayer's account, used to notify the taxpayer of a balance due, refund, or no balance status.

CREDIT BALANCE: A condition in which the amounts of credit on a tax account exceed the balance due.

CULPABLE SPOUSE: During the examination of a joint return, if a culpable party is determined, Examination/Appeals will prepare assessment documents to assess the culpable spouse. This type of assessment is processed to the Individual Master File (IMF) MFT 31.

DAILY ASSESSMENTS: An assessment which is prejournalized.

DATA CONTROL: Procedures designed to put all documents under control to assure that all documents are processed.

DEBIT BALANCE: A condition in which the balance due exceeds the total amount of credits.

DEPOSIT DATE: The calendar date coinciding with the Julian Date in the DLN.

DEPOSIT FUND COLLECTIONS: Account established to control receipts held in suspense, pending some other action.

DEPOSIT TICKET: The form the Deposit Function must prepare to deposit each day's balanced remittances.

DISHONORED CHECKS: Depositories return unprocessable checks to our Accounting Branch by charging these items against the Treasury General Account (TGA) as unpaid checks—these charge backs are due to the Deposit Function's erroneous encoding, lack of encoding, taxpayer insufficient funds etc.

DOCUMENT: A business form, voucher, or written evidence of a transaction.

DOCUMENT CODE: The fourth and fifth digits of the DLN which identify the type of document used to record tax data information on a taxpayer's account. For example, doc. code 41 identifies Form 941, Employer's Quarterly Federal Tax Return. Refer to Document 6209, IRS Processing Codes and Information, for a complete listing of doc. codes.

DOCUMENT LOCATOR NUMBER (DLN): A fifteen-digit number assigned to every return and document input through the ADP system that affects a taxpayer account. The document locator number is used to identify and locate the document.

DOCUMENT REGISTER: A numerical listing of each item in a block of returns or documents. It is used as a transmittal on each block of remittance documents. Part 3 or a photocopy of the Form 813 is used to create the Master Control Record (MCR) on the Service Center Control File (SCCF). The Form 813, is used to clear the SCCF.

DUE DATE: Prescribed date on which a calendar or fiscal year return must be filed.

DUMMY TAX PERIOD ENDING: A tax period ending used to establish an account on the ANMF system when that account already exists on the database causing a duplicate Primary Key condition. When establishing an account with a "dummy" tax period, be sure to input the actual period ending date of the assessment into the Actual Period Ending Date field of the entity.

EMPLOYER IDENTIFICATION NUMBER: A nine-digit number used to identify a taxpayer's business account.

ENTITY AREA: The face of an input document where the name, address, account number, tax period and other entity data may appear.

FEDERAL TAX DEPOSIT (FTD): A system whereby taxpayers are required to make deposits of trust fund monies through local or commercial banks. These deposits are sent to Treasury which prepares a special Certificate of Deposit and places each item on a magnetic tape. These tapes are then shipped to Enterprise Computing Center at Martinsburg (ECC-MTB) for posting to the taxpayer's account.

FILE LOCATION CODE (FLC): The first two-digits of the DLN assigned to identify the district office related to the processing campus.

FISCAL YEAR (FY): Twelve consecutive months ending on the last day of any month other than December.

FREEZE CODE: A code restricting the Master File from refunding or offsetting from an account.

GOOD BLOCK PROOF (GBP): A copy of the Form 813 is used to clear the NMF DLN from the SCCF. This is referred to as a Good Block Proof (GBP).

INNOCENT SPOUSE: When assessments are proposed against a joint account, one spouse may claim they had no knowledge of the filed return/information. If a determination is made in favor of the "innocent spouse," tax adjustments are made separately on IMF MFT 31 for the portion determined for each spouse.

INTEGRATED DATA RETRIEVAL SYSTEM (IDRS): A computer system with the capability to instantaneously retrieve or update stored information which works in harmony with our Master File of taxpayer accounts. This system is aimed at quick resolution of problems and queries concerning current taxpayer accounts. It also provides information immediately for IRS personnel in their work assignments.

INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP): Replacement of the Distributed Input System (DIS) and Remittance Processing System (RPS) which interfaces with the computer room for processing returns and remittances to the Master File.

JOURNALIZATION: The process of debiting and crediting General Ledger accounts. Every tax transaction that involves money must be journalized to maintain accounting control.

JULIAN DATE: A system of numbering the days of the year from 001 through 365 (or 366) and used as the 6th, 7th, and 8th-digits of the DLN.

MASTER FILE: Subsidiary records of taxpayers' accounts established and maintained on magnetic tape at the Enterprise Computing Center, Martinsburg, (ECC-MTB).

MASTER FILE TAX CODE (MFT CODE): A two-digit number which identifies the type of tax.

MASTER CONTROL RECORDS (MCR): A tape is created from a copy of Form 813. This tape will create the MCR on the SCCF.

MICROFILM: A media to provide photographic records to printed data on a reduced scale.

MM/DD/YYYY: The eight-digit format which identifies the month, day, and year, i.e., January 03, 1986 will be 01/03/1986.

NAME CONTROL (ALSO REFERRED TO AS ALPHA): The first four letters or hyphens of the principal name of the taxpayer. Blank spaces will be included if the principal name consists of less than four-characters.

NON-MASTER FILE: Subsidiary records of taxpayer's accounts which are not established and maintained on one of the Master Files.

NON-REMITTANCE (N/R): Returns and documents received without a payment or an unacceptable form of payment are processed in the Non-Remittance Numbering Function and the assigned DLN Julian Date is a week-end date.

OFFER-IN-COMPROMISE: A proposal for settlement of tax liability for an amount less than that previously assessed (or unassessed) or a liability for specific penalties assessed (or unassessed).

PERIOD ENDING: The ending year and month indicating the period covered by a tax return, e.g., 8609 indicates a return for the period ended September 30, 1986. For the ANMF system, an eight-digit field in MMDDYYYY format.

PETITIONING/NON-PETITIONING SPOUSE: When a statutory notice of deficiency is issued on a joint return and only one spouse petitions the U. S. Tax Court, assessments will be made against the non-petitioning spouse and processed through IMF MFT 31.

POSTING VOUCHERS: Various procedures require the Deposit Activity to prepare a source document (posting voucher) containing all the required information for input.

PRESEARCH: The act of searching for required data not present on the source documents via the IDRS or ANMF terminals prior to the actual deposit of the remittance.

RECAPITULATION: Balancing the summaries of remittances to the documents.

RECONCILIATION: Resolving discrepancies within the total document count and money amount for each block.

REFUND: Money returned to the taxpayer as a result of overpayment of a tax liability.

REIMBURSABLE PROJECTS: A projects for which IRS is paid to perform the actual processing of other agencies' data.

REJECT: A return or document determined to be unprocessable because of missing data, erroneous blocking, or incomplete information. The document is coded to reject by tax examiners and is placed on reject registers for correction by error perfection groups.

REMITTANCE AMOUNT: An amount of money received in payment to taxes—may be a check, money order, cashier's check, or cash.

REVENUE RECEIPTS: Monies collected in payment of tax liabilities. The net totals of Accounts 2100 and 2200.

SEIZED PROPERTY: Circumstance(s) sometimes requires IRS to take possession of a delinquent taxpayer's property and sell it for payment of back taxes.

SERVICE CENTER CONTROL FILE (SCCF): A Magnetic Tape Control System to record the receipt of Returns or documents into the processing pipeline, to record the process of the documents through the processing system and finally to record the fact that all items complete processing. The SCCF systems maintain separate totals for revenue receipt items and other items.

SOCIAL SECURITY NUMBER: A nine-digit number used to identify an individual taxpayer account.

SPOUSAL ASSESSMENT: During the examination of a joint return, the Appeals Office will assess both spouses separately for the same tax issue to the IMF MFT 31.

STATUTE LIMITATIONS: The Internal Revenue Code states that the IRS will assess tax, refund credit, and collect taxes within a specific time frame. This limit is known as the "Statute of Limitations." The determination of a statute expiration differs from Assessment Statute Expiration Date (ASED), Refund Statute Expiration Date (RSED), and Collection Statute Expiration Date (CSED). See IRM 25.6, Statute of Limitations, for further information.

SUBSEQUENT PAYMENT: A payment received for an account that is assessed and the taxpayer billed.

TAX CLASS: Revenue Receipts are categorized into seven major tax classes. These are: withholding, individual income, corporation income, excise, estate and gift, carriers’ tax, and Federal Unemployment Tax.

TAX PERIOD: A six-digit number which represents the end of the tax liability year for a return; and is designated by the year and month,

TAXPAYER: An entity liable for any type of Federal tax.

TAXPAYER ADVOCATE SERVICE PROGRAM: A program established whereby taxpayers' problems can be referred and controlled until the problems are resolved.

TAXPAYER DELINQUENT ACCOUNT (TDA): Accounts that are not full paid 6 weeks after the 4th notice issuance date. Accounts are automatically assigned to Field Collections upon establishment on IDRS.

TAXPAYER IDENTIFICATION NUMBER (TIN): Every taxpayer on the Master File has a permanent number for identification of the tax account. The employer identification number (EIN) is used to identify taxpayers on the Business Master File. The social security number (SSN) is used as the account number of the taxpayer on the Individual Master File. The format of these account numbers is:

TRANSACTION CODE (TC): A three-digit number which defines the precise nature of the transaction. For example, TC 150 indicates "Return Filed and Tax Liability Assessed." Refer to Document 6209, IRS Processing Codes and Information, for complete listing of transaction codes.

UNIDENTIFIED REMITTANCE (UR): Remittances without the necessary identification to apply to a Master File or a Non-Master File account.

UNIDENTIFIED REMITTANCE FILE (URF): A separate file within the Integrated Data Retrieval System containing all remittances received that cannot be immediately identified or applied. Each record within the file contains the URF control number, amount or remittance, type of remittance, received date, taxpayer's name, and other identifying information, if known.

UNIT LEDGER CARD (ULC): Account cards that were used prior to the ANMF System to record all transactions related to a tax liability maintained manually.

USER-FRIENDLY TRANSCRIPT: this transcript, similar to a MFTRX, can be sent to the taxpayer.

WEEKLY ASSESSMENTS: An assessment which is post journalized.

WITH REMITTANCE (W/R): Any document received with cash, check, money order or other forms of payment.

The following Submission Processing Design Center (SPDC), courses provide instructions for NMF processing. New hires must take this training within 30-days of reporting to the NMF team. Refresher training should be taken as needed at management’s discretion.

The following IRMs provide instructions for the actual terminal input to Integrated Data Retrieval System (IDRS).

The following IRMs provide additional instructions for NMF processing.

The ANMF SERVICE CENTER RECAP OF ASSESSMENTS, ABATEMENTS, AND OTHER POST-JOURNALIZED TRANSACTIONS, hereafter referred to as ANMF SC RECAP or ARECAP, was implemented on May 2, 2006. The report mimics the weekly IMF and Business Master File (BMF) SC RECAP with one exception – ANMF SC RECAP is processed daily. However, the 23C Date is the weekly 23C Date.

The ANMF SC RECAP reflects the Weekly Posting Cycle with a Day portion (DD). The cycle begins on Friday and ends on Thursday. Effective January 1, 2012, Customer Account Data Engine 2 (CADE 2) will transition the IMF Legacy processing cycle from a Saturday - Sunday to a Friday - Thursday cycle, the DD and 23C date will change to coincide with CADE 2. The DD denotes the day of input to the ANMF database as follows:

The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps and records it into the proper RACS Line Number which is linked to the various General Ledger Accounts within the RACS database. A file is sent to the Detroit Computing Center (DCC) for internal or batch journalization via RACS which occurs two-days after input to ANMF. For instance, if Friday is the day of input to ANMF, the ANMF SC RECAP is printed on Monday, then RACS will journal on Tuesday. See Exhibit 3.17.46-8.

RACS created two new batch journals – journal 142 for the Weekly Assessment data and journal 141 for the "Default" or remaining data. During month-end processing, journal 142 will recognize the 23C Date as a future journal while journal 141 will recognize the "Default" data as current. This minimizes the reconciling items for month-end reporting on Form 3997, Reconciliation of General Ledger Accounts.

The ANMF SC RECAP Problem Report identifies those transactions that posted to ANMF but did not meet the criteria for RACS batch journalization, i.e., it would have posted to an incorrect General Ledger Account. This report is strictly for NMF analysis in determining corrective action and not intended for RACS.

The ANMF Nightly Processing Menu has two options, 30 and 31, to print the ANMF SC RECAP and ANMF SC RECAP Problem Report, respectively.

RACS will receive blocks of documents and prepare the Form 813 if one is not present. Each document must have a Document Locator Number (DLN). All debits and credits must be listed on the Form 813.

When completing the Form 813, stamp Part 1 with the ANMF processing stamp and initial it when the function is performed. Annotate the Form 813 with the journal number, 23C date and NMF status if the Form 813 contains pre-journalized items. If the Form 813 contains post journalized items, this information will be included on the various RACS Recaps and will be annotated on Form 813 at the time RACS receives the Recap. See IRM 3.17.46.5.4 (4) and (5) for further information.

Choose the option Add Block Control from the Processing menu. Input the following information to the Form 813 Block Control screen: See IRM 3.17.46.13.4 for entry information.

Initial the ANMF stamp for "813" after adding the Form 813 Block Control screen entries.

RACS is the only function that can enter, correct or change (UP–DATE) the Block Control information.

Send the Form 813 and related documents to NMF for further processing.

Pre-journalized items include all daily assessments, embezzlement cases, adjustments (ADJs), Revenue Procedures (Rev. Proc.) and closing agreements. See IRM 3.17.46.5.1 for further information.

Input pre-journalized assessments through the Daily Assessment screens. The window will show the 23C date based on the current date and cannot be overlaid.

Each block of pre-journalized assessment source documents should contain the following information:

Post-journalized items include all weekly assessments and all other subsequent transactions including payments which are not determined as advanced payments. See IRM 3.17.46.5.2 for further information.

Input post-journalized assessments through the Weekly Assessments screen. The window will show a 23C date that cannot be overlaid.

Any post-journalized action taken on ANMF (i.e., assessment, status change, subsequent transaction, account transfer-out, etc.) will generate a RACS Recap. Print two copies of the RACS Recaps, one copy is attached to the documents and retained in NMF. Maintain copy two of NMF or RACS Recaps as a clean copy for official file and association with the ANMF SC RECAP.

The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps. Complete the following steps:

The ANMF SC RECAP Problem Report identifies those transactions that posted to the ANMF database but did not meet the criteria for batch journalization.

The RACS DBA and/or Designated RACS Accounting Technician responsibilities are:

Designated RACS Accounting Technicians will:

Figure 3.17.46-1

Transmittal Recap of RACS SummariesShown is a Transmittal Recap of RACS Summaries which is a list of RACS Summaries generated on a given day. The top of the Summary lists from left to right, Summary Number, DLN, Summary Title, and Date of Summary.

Please click here for the text description of the image.

Figure 3.17.46-9

TC Code 53X RECAPShown is a TC Code 53X RECAP which is a recap of transaction code 530 currently not collectible. The top of the recap lists from left to right, DLN, Status To, Status From, Account Balance, and SSN/EIN. Also shown is TC Code 53X Cumulative Totals which lists the cumulative totals listed by left to right, Debit or Credit, Status, Amount, and Items.

Please click here for the text description of the image.

If Batch Journalization of the ANMF SC RECAP fails at DCC and cannot be recovered, then route the preceding NMF or RACS RECAPS to RACS for manual post-journalization. Send these recaps under the cover of the Transmittal Recap of RACS Summaries which lists all RACS Summaries generated on a given day. RACS will verify receipt of all Recaps on the transmittal by signature and date.

RACS will journal all assessments to conform with the 23C date indicated on each Recap. This is the month the transaction posted to the taxpayer account.

If a system failure necessitates manual journalization, all NMF or RACS Recaps must be journalized the same month as the transaction date indicated on each Recap including the Recaps dated the first of the following month. This is the month the transaction posted to the taxpayer account. The ANMF SC RECAP was programmed to meet this criterion.

After journalization, RACS will stamp the journal number on both parts 2 and 3 of the Recap and input the journal number to the UPDATE JRN'L screen (figure 3.17.46-10). Part 2 of the Recap is retained in RACS in summary number order. Part 3 is sent back to NMF, filed by journal number to use when balancing.

Figure 3.17.46-10

Generated RACS Summaries Input ScreenShown is a screen for input of Recap journal number. There are five fields for data entry. They are as follows from top to bottom:Summary NumberDLNSummary TitleDate of SummaryJournal Number

Please click here for the text description of the image.

Weekly, RACS receives an Unprocessed Block List and a Recap of Journaled RACS Summaries generated from ANMF.

Daily, RACS receives an NMF Block Listing (figure 3.17.46-12) from the NMF DBA. RACS associates the listing with the related Form 813 and documents and sends this package to NMF for input of the document transactions. If the one-day delay may jeopardize timely processing of any work, transmit the Form 813 and related documents via a Form 3210, Document Transmittal, or Form 10869, Returns or Other Documents Transmittal, as soon as the Form 813 is controlled on the system. Maintain a copy of the transmittal for document control on the NMF Block listing. Types of conditions where a one-day delay may cause concerns are as follows:

Figure 3.17.46-12

NMF Block ListingShown is the NMF Block Listing which is a list that notifies NMF the Forms 813 entered onto the Form 813 Block Control screen by RACS the previous day. The top of the listing lists from left to right, DLN, Total Debit Amount, Total Credit Amount, Total Items Count, and Aged Days. There are cumulative totals for Debits, Credits, and Items at the bottom of the listing.

Please click here for the text description of the image.

All assessments are certified by signature of an authorized official on the Summary Record of Assessment (Form 23C, Assessment Certificate—Summary Record of Assessments). A signed Summary Record of Assessment authorizes issuance of notices and other collection actions (refer to IRC Regulations 301.6203–1).

Most actions prescribed by this Chapter will be summarized on a Summary Record of Assessment by RACS.

RACS will certify expedite assessments and immediately prepare the Summary Record of Assessment.

Each block of assessment documents will have a Form 813. Annotate the Form 813 with the following:

The ANMF system has two types of assessments: pre-journalized and post-journalized. Annotate the Form 813 for pre-journaled documents with all the information in (4) above and must also include the NMF status. Post-journaled documents will generate a Recap, which will have the 23C date and the NMF status set by the system. RACS will annotate the journal number and journal clerk's initials on the Recap after journalization.

The ANMF system will set the 23C date for three weeks in advance. The 23C date is reset each week after the Thursday night processing is completed. Items input on Friday will carry the next 23C date set by the system.

The following instructions pertain to existing NMF accounts on the ANMF System.

Form 1331/ Form 1331B, Notice of Adjustment (posting copy), will be the posting document for the abatement. The following documentation is required:

List the full amount of the overassessment as an abatement on both the Form 1331/ Form 1331B and overassessment label. If the abatement credit exceeds the balance of the account, enter the disposition of the credit in the correct portion of Section II of the Form 1331/ Form 1331B.

List Form 1331/ Form 1331B on Form 813. List the Form 3753, or Form 5792 on separate Form 813.

The Manual Refund function will prepare Form 2188, Voucher and Schedule of Overpayment and Overassessments, from Section II of Form 1331/ Form 1331B—for the net decrease in liability (total of refund elimination plus credit; total of the abatement etc.)—to certify the amounts of overassessment on Form 813. Enter the schedule number and schedule date of Form 2188 on the Form 813, Form 1331/ Form 1331B and the Overassessment Sticker. Enter the schedule number on the posting copy of Form 1331/ Form 1331B.

The refund amount will be scheduled on Form 1166, Refund Schedule. Attach copies of the refund document to the Form 1166 and to the Form 2188.

Attach Part 2 of Form 1331/ Form 1331B and the supporting documentation to the original assessment document and send to RACS for input to the Form 813 Block Control screen. Part 1 of Form 1331/ Form 1331B goes to the taxpayer.

RACS will send the renumbered original assessment document, Form 813 and Form 1331/ Form 1331B part 2 to NMF for input of the abatement or credit through the SUBSEQUENT TRANSACTION INPUT screen.

Enter the name/employee number of the initiator in the history area.

Enter the schedule number into the Refund/Abatement Schedule Number field through the subsequent transaction screen of the related NMF account.

The Manual Refund function will forward Form 1331/ Form 1331B, a copy of Form 1166, Form 3753 or Form 5792, and the related case files through RACS to the NMF function for simultaneous posting of the abatement and refund to the NMF account per IRM 3.17.79, Accounting Refund Transactions. NMF will input the proper transactions for credit, refunds, etc., to the NMF account through the SUBSEQUENT TRANSACTION INPUT screen.

The NMF Service Center Control File (SCCF) is established to control NMF documents in process within the campus and to summarize collected revenue by type of tax.

Entry on the control file is by Form 813 input through ISRP.

Data Control clears the control file from entries on the Block Summary on the reverse of Form 813 via command code (CC) SCFAJ. Clearance normally requires re-input from this form of the identical money amount and item count shown on the Form 813 used to establish the control file. Information to complete the Block Summary is obtained from the pre-journalized documents or from post-journalized RACS Recap Summaries generated from the ANMF System.

Exceptions to the preceding are—

If a remittance that should be processed to a Master File account is identified as improperly numbered in an NMF block:

If a return or remittance should be processed NMF but is misblocked (numbered in an improper series):

All collections, reversals or subsequent re-applications must be identified for reporting purposes by an abstract number. Abstract numbers can be computer generated for some documents but must be manually determined and input to the system for others. The proper abstract numbers applicable to collections on the various returns and documents are listed in Exhibit 3.17.46-6 and may also be found in Accounting and Operating Reports IRM 3.17.41, Accounting and Operating Reports.

Collections may be received for certain types of penalties for which the computer programs necessary for abstracting have not been completed, requiring a special manual compilation and reporting.

An assessment cannot be made after the statutory period of limitation has expired. The Submission Processing Director is required to report immediately upon discovery of cases in which the statutory period of limitations expires prior to assessment of deficiencies. When such a case comes to the attention of the deficiency clerk or accounting control clerk, follow local procedures and prepare Form 3210, Document Transmittal, Barred Statute Case Control and forward it to the Statute Unit. The Statute Unit will reply with the pertinent information to prepare a report for the Submission Processing Director on Form 9355, Barred Statute Report.

General—This section provides instructions for processing non-rebate erroneous abatement cases in which Master File computer programming prevents the reversal of abatement transactions after the Statute of Limitations for Assessment has expired. These cases are limited to situations in which an erroneous abatement occurred due to a clerical error that served to reduce the tax liability of that account or another account, a bankruptcy discharge, or an unauthorized abatement that occurred after referral to the Department of Justice. See IRM 25.6.1.10.2.1.1, Reversal of Erroneous Abatement. The IRS will treat the account as any other account where the original tax liability is unpaid. Refer to IRM 3.17.243.3, Reversal of Erroneous Abatements, for additional background information and Credit and Account Transfer procedures.

The Manual Refund Team will receive the Form 3465 package and:

RACS will input the Form 3465 to the Form 813 Block Control screen. The Form 3465 will be the source document used for input.

Process the Form 514-B for the account transfer from MF following normal Transfer-in procedures. See IRM 3.17.46.6.16.

NMF will process the TC 860 through the Subsequent Transaction screen. The Form 514-B must be Loaded to the database prior to the input of TC 860. Form 3465 must contain the following:

Forward Form 3465 and all related documents to the NMF Accounts Maintenance function as soon as the TC 860 is input.

The Accounts Maintenance function will analyze each Form 3465 TC 860 request, if the reversal account was on the MF and Form 3465 indicates "No Notice to the Taxpayer" :

If the reversal account came from the MF or originated in NMF and the Form 3465 indicates "Notice to the Taxpayer" :

For Non-Master File accounts only—If the reversal account was assessed as an NMF account or the original NMF assessment was abated twice, the following procedures apply.

Send the Form 3465 with Form 813 to Returns Files after the month end balancing.

Process payments received on the TC 860 accounts as normal NMF subsequent transactions.

If more than one 23C date is involved in the reversal (i.e., TC 150 and TC 290), a separate account with a TC 860 must be prepared for each of the 23C dates involved.

The Two-Year Hold TDA Monitoring file in the Collection Branch has been discontinued and all remaining liabilities abated. Subsequently, when the full amount of a Trust Fund Recovery Penalty is collected, the remaining liabilities are abated. When a claim for refund is filed by the responsible person prior to the collection statute, reversals of the abatement may be necessary.

These accounts will be maintained in NMF because the Civil Penalty Module cannot handle the reversal of the abatement using the reinstated 23C date.

Collections will prepare Form 12810, Account Transfer Request Checklist, a Form 3465, and a Memorandum of Authority requesting transfer of the reversal to NMF.

The Account Transfer function will prepare a Form 514-B to input the TC 400 to the Master File. When the TC 400 posts to the Master File, the Accounts Transfer function will prepare another 514-B to establish the account on the ANMF system.

The Form 3465 and Memorandum of Authority is sent directly to the Manual Refund Team without being routed through the Statute function. The Form 3465 will be assigned a DLN with doc. code 54. A Form 2188, Voucher and Schedule of Overpayments and Overassessments will be prepared to reverse the abatement.

NMF will establish the account on the ANMF system using the 23C date of the original assessment with a Transaction Code 860. DO NOT issue a notice; issue an immediate TDA. Entries unique to the establishment of these accounts are as follows:

See IRM 3.17.46.9 to establish TDA via IDRS.

Receive returns from batching under control of Form 2345, Batch Transmittal. Returns will be numbered and blocked as assessable returns.

Prepare Form 813 for the assessable blocks, listing the amounts to be assessed. Use the DLN from the Form 2345 and verify that the item count on the Form 813 equals that of the Form 2345.

Upon receipt of the various NMF Recaps, complete items (a), Abstract Number and Amount, on the NMF Block Summary of Form 813 for all taxable blocks. See IRM 3.17.46.3.7, NMF Service Center Control File: Abstracting

Examination audit "no changes" will no longer be established on NMF, after being closed by Examinations or Audit Information Management System (AIMS). Send the "No Changes" to the Files area in the campus where they were closed.

These procedures apply to the additional assessments of tax, penalty, and interest on NMF returns and MF returns for which the additional assessment will remain on the ANMF.

For instructions on accelerated assessments which will be immediately transferred to a Master File (never really established as Non-Master File accounts), see IRM 3.17.244, Manual Assessments, which contains procedures for processing Quick, Prompt and Jeopardy assessments. The ANMF system will only accommodate one abstract number per assessment/account. If any assessment document is received indicating assessments that carry multiple abstracts, return the document to the originator requesting preparation of additional documents. Multiple abstract assessments are related to multiple penalty sections on one document.

Requests for original assessments will normally be received on:

Form 5344, Form 5403, and Form 5599 contain coded information which must be input to the NMF account. Special handling instructions may appear on the forms.

Form 4881 may assess one or more excise taxes against a foundation manager or other individual. The entity liable is the one entered in the left box at the top of the form.

If Form 3244A, part 2, Payment Posting Voucher—Examination is attached to the assessment document, determine if the payment is assessed or unassessed. See IRM 3.17.46.8.5, Processing of Advance NMF Payments, Payment Posting Vouchers (Form 3244 and Form 3244A) for further processing instructions.

Forward Form 813 and related documents to NMF for establishment of an NMF account.

When a memo of credit is indicated on an assessment:

Print the NMF Cycle Proof List (CPL) at the beginning of each month. It lists all the blocks of documents that processed during the preceding month.

Route the CPL and associated documents to Files when monthly balancing is completed.

Be sure to keep a copy of the CPL for one year, as this is the only permanent record of processed blocks.

Returns or documents that are not assessed or collected within the statutory periods prescribed by law result in a loss of revenue to the IRS and require the preparation of Statute Expiration Reports.

The normal ASED expires three years from the date the original return was filed; or three years from the due date of the return, whichever is later (IRC 6501(a)). See IRM 25.6.1, Statue of Limitations Processes and Procedures, for other statute issues.

Code and Edit will flag delinquent NMF returns and send to the Statute Unit for statute clearance.

Code and Edit will also flag amended returns on which the expiration of the statute of limitations is imminent (four-months or less) to alert Accounting of the statute condition. These may be routinely assessed with a 23C date on or before the statute expiration date.

IRC 7508 provides that the IRS must disregard a period of time when determining whether certain acts are performed timely when an individual is in a combat zone. The acts that are postponed include acts performed by the taxpayer, such as filing a return or paying tax due, and acts performed by the Service, such as assessing and collecting tax. The time to be disregarded is that period during which the individual serves in a combat zone or hazardous duty area, plus the period of continuous hospitalization attributable to an injury received during that time, and the next 180-days. A current list of combat zone areas can be found on IRS web page, Combat Zones | Internal Revenue Service (irs.gov).

If notified by Accounts Management, Collection, or Examination that an existing NMF account (true tax class 2 or 5 with an SSN) involves someone in the combat zone or hazardous duty area, NMF will suspend further notice issuance. An entry and departure date must be provided.

A Form 3177 must be prepared to input the TC 500 to the NMF account through the Subsequent Transaction screen to suspend notice issuance. The TC 500 transaction date will be the entry date into the combat zone.

Hold the account in status 89 for the length of time the individual is in the combat zone or hazardous duty area plus 180-days.

A Form 3177 must be prepared once it is determined that the notices/TDA should resume. The TC 502 transaction date will be the date of departure plus 180-days.

Routine notice/TDA issuance will resume once the TC 502 posts to the account, however, the generated notice/TDA will not include accruals. An associated "DS500" transcript will also be generated at the time a notice/TDA is generated. This transcript is to be used to assist in the computation of accruals which must then be typed onto the "entity only" notice. No interest or penalty is charged for the length of time the taxpayer is in the combat zone or hazardous duty area, plus 180-days. See IRM 20.2.7.11 IRC 7508, Combat Zone, for exact period for not charging interest when a taxpayer is in a combat zone.

Daily assessments are made to protect the assessment from being barred by the statute of limitations or to expedite the collection process. These assessments are made through the Daily Assessment option from the Processing menu of the ANMF System to generate Form 6335, NMF First Notice.

RACS will assign a DLN to daily assessments, prepare Form 813, journalize assessments through RACS using the RACS window, enter the Form 813 information onto the ANMF System using the Form 813 Block Control screen and stamp Form 813 with the journal number and the 23C date.

RACS will send the Form 813 and the related documents to NMF for input to the ANMF System through the Daily Assessment option from the Processing menu.

In some instances, assessments may be faxed to the campus for immediate assessment. Faxed requests must provide the following minimum information:

The standard billing schedule will apply to all NMF Quick Assessments. Input a "1" into the Notice Type field when establishing the account.

Jeopardy or Termination Assessments will require a Form 6335, NMF First Notice and an immediate TDA. Input a "Z" into the Notice Type field when establishing the account.

When the initiator of an NMF statute imminent assessment indicates that credits which are posted to Master File are being transferred to the tax period which is being assessed on NMF. NMF will assess the tax and the notice mailed to the taxpayer will reflect the anticipated credit.

Assessments where the statute of limitations is not imminent or no specific immediate assessment date is requested or required will be processed as a weekly assessment. Systemically, the 23C date (assessment date) is set to coincide with the RACS 23C date which is the current Monday date plus 21-days.

RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and include the 23C date on Form 813.

RACS will send Form 813 and the related documents to NMF.

NMF will input the assessment to the ANMF System through the Weekly Assessment option from the Processing menu .

The ANMF SC RECAP is generated the following day after the account posts to the NMF database.

NMF will send the Recap(s) to RACS for journalization. The related Form 813 will be associated, and the reverse side worked as instructed in IRM 3.17.46.3.4, Collection Statute Expired Processing. This will only occur if manual journalization is required. See IRM 3.17.46.3.4 (4) for the ANMF SC RECAP procedures.

Input of the Form 813 information using the Form 813 Block Control screen is the major control for all items entered onto the ANMF System. RACS will input all blocks of documents that are either pre-journalized or post journalized to the Form 813 Block Control screen. See IRM 3.17.46.13.4, NMF Block Control/Correction, for further instructions. The only exceptions are Even returns, Refund returns, NMF Extensions of Time to File, entity changes, and transfer-in accounts.

There are three listings generated through the ANMF System that are associated with input through the Form 813 Block Control screen.

One listing generated through the ANMF System is associated with input to the Update Journaled RACS Recaps screen. This listing is the RECAP of Journaled RACS Summaries and is printed weekly. The list shows all Recaps generated during a given week and includes the journal number. The list is used as an additional balancing tool.

Many actions taken on the ANMF System (i.e., weekly assessments, status changes, subsequent transactions, etc.) will generate a Recap. The DBA prints two copies of the RACS Recaps. Keep one copy with the documents in NMF. Send one copy to RACS and after journalization is stamped with the journal number and returned to NMF and held for balancing purposes.

Recaps generate daily. Associate each recap with the posting or assessment documents by DLN and review to verify that the item count and money amount is correct. Associate and send a copy of the corresponding Forms 813, RACS Recaps and Transmittal Recap of RACS Summaries to RACS for journalization. Form 813 will be kept with the documents when partial block closures occur. The Recap and the posting documents are held in NMF until the NMF monthly balancing is completed. At that time, they are associated with Form 813, verified on the Cycle Proof Listing and sent to Returns Files.

If the RACS Recap is identical to Form 813 (item count and money amount) of the posting or assessment document(s), follow the steps below:

If the RACS Recap is not identical to the Form 813 (in item count and money amount) of the posting or assessment document, an unpostable condition exists. If the Form 813 carries more than one item and the unpostable condition cannot be corrected that day, then a partial block (Form 813) will be sent to RACS to journalize the posted items. Complete the following for the Form 813:

After final resolution of the partial, complete the following for the Form 813:

If the Recap and Form 813 (in item count and money amount) do not match and the unpostable condition is corrected by nullifying the transaction, gather all blocks of posting documents by DLN using the NMF Nullified Unpostable list and follow the instructions below:

If the nullified item(s) with generated Recap(s) completes the balancing of the Form 813:

If the nullified item(s) with no generated Recap(s) completes the balancing of the Form 813:

If the nullified item(s) does not complete the balancing of Form 813:

In some instances, a partial document may be the cause of a partial block. This condition occurs when one of the items (documents) listed on the Form 813 has multiple transactions and one or more (but not all) of the transactions go unpostable. If this condition occurs, notate the Form 813 with the following:

If the partial document carries an unpostable code 010, and is not a duplicate posting, reinput to the Form 813 Block Control screen (DO NOT create a new Form 813) will be necessary to re-establish the unpostable item ONLY.

Internal Revenue Code 7804(c) provides for assessments to be made against officers and employees of the IRS who either embezzle or fail to properly handle and account for money received in connection with the Internal Revenue laws. These assessments are worked under NMF procedures.

IRM 3.0.167, Losses and Shortages, contains more information regarding 7804(c) assessments.

Prior to NMF assessment, the embezzled amount is journaled to the 7610 Account and a letter of notice and demand sent.

If payment is not received within 30-days of the notice, a copy of the letter of notice and demand will be forwarded to RACS for pre-journaling the assessment from the responsible accounting area maintaining the 7610 Account. The letter is used as the source document and numbered as follows:

The letters are coded with a TC 290 amount and the interest (TC 340) computed from the date of the embezzlement to the 23C date. These assessments are included as Current Assessments on the Assessment Certificate (Form 23C). See IRM 20.2.11.15, Assessment Against Treasury Department Embezzlers (NMF).

After RACS has pre-journaled the assessment and input the Form 813 information into the Form 813 Block Control screen, RACS will forward the Form 813 and assessment document(s) to NMF for further processing.

NMF will establish an account for the assessment on the ANMF system through the Daily Assessment option from the Processing menu. Field entries unique to these assessments are as follows:

The system will generate the Form 6335 after establishment of the account. Mail the Form 6335 to the employee in question. NMF Fourth Notice (Form 4840) is systemically generated six weeks from the date of Form 6335. After an additional six weeks has elapsed, the account will systemically move into TDA /Status 22 and Integrated Collection System (ICS) will be updated to reflect TDA information.

Notify the 7610 Coordinator of the TDA issuance so a memo explaining procedures can be sent CSCO.

NMF will load 7804(c) embezzlement cases to NMF IDRS once the account reaches TDA status regardless of balance.

After posting of payments, request a transcript of the account and forward to the 7610 Coordinator at the site where the loss occurred for preparation of Form 3809 to credit the 7610 Account and debit the 6900 Account.

Additional interest computations on amounts outstanding will apply as outlined in IRM 20.2, Interest.

Previously, most of these penalties were assessed on the NMF since they were not asserted directly in connection with an income tax deficiency. Some of these penalties relate to acts committed by the person penalized, while others are assessed for failure to file or furnish certain information and information documents.

Many civil penalties were moved to the Master File. To accommodate civil penalties, the two new MFTs created are: MFT 55 for IMF and MFT 13 for BMF. Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties is used by either area office or campus personnel to request assessment or abatement of certain non-return related civil penalties. In certain situations, NMF will still process the civil penalties.

RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

RACS will send the Form 813 and the assessment documents to NMF for processing.

NMF will input the assessment to the ANMF System through the Original Assessment-Weekly screen which will generate the first notice.

NMF will input CVPN into the Form field.

Mail two copies of the Form 6335, NMF First Notice, to the taxpayer and forward part 3 to the originator.

Assessment documents will be sent to Returns Files after the NMF monthly balancing is completed.

The Community Renewal Act of 2000 amends the Reform and Restructuring Act of 1998 Section 6331(k) stating that the IRS can no longer suspend the Collection Statute of Limitations while certain offers are pending.

NMF should no longer input a TC 481 (rejected OIC) or a TC 482 (withdraw OIC) with a TC 550 extending the Collection Expiration Date on the ANMF system. If a request is received, input the TC 481/482 only. Notify the sender that the TC 550 was not input, citing the Community Renewal Act of 2000 which amended RRA 1998 Section 6331(k) (3).

Form 1040, Individual Income Tax Return, which cannot be processed to Master File because the module balance is $1 billion or greater must be routed to the Accounting Function in the Kansas City Submission Processing Campus. The NMF Account Specialist will review the return for any special handling prior to posting to ANMF. For example, the taxpayer may have a tax deferral which will require coordination with the Adjustment function.

Form 1040 is numbered as follows:

RACS will pre-journalize the assessment and send the return to NMF to establish an account on the ANMF system.

NMF will establish an account on the ANMF system through the Load Old Accts/Transfer-In option from the Processing menu.

Entry through the Load Old ACCTS/TRANSFER-IN screen will automatically generate an account transcript the next day. These transcripts will be distinguished from the requested transcripts by the 99999–99999 in the employee number field on the transcript. The NMF function will verify the transcripts to the return. If there is an error, prepare DBA correction request.

NMF will input the following transaction codes to the Master File tax period:

If it is determined that the return is an amended, void the DLN and renumber as follows:

If the tax return indicates a Credit Elect in lieu of a refund, prepare Form 3809 to post TC 830 to Debit NMF and TC 710 to Credit Master File for the next tax period.

Balance Due – The taxpayer usually remits estimated payments and/or may have a credit elect on the Master File prior to filing the tax return. Master File will cause an Unpostable Condition when a payment/credit results in the total balance of $1 billion or greater. Rejects will notify Accounting to move the payment/ credit to the NMF Unapplied Advance Payments Account 4610. Upon notification, the NMF Account Specialist must transfer all payments/credits via Form 2424 or Form 3809 from the Master File module to Account 4610 pending the filing of the tax return.

Route a photocopy of the return (including all schedules) to the following Statistics of Income Unit (SOI):

The IRS will occasionally enter into a closing agreement with certain agencies. They may be sent from the Headquarters to the Kansas City Submission Processing Campus via memorandum. Use the closing agreement as authority for assessment and a substitute return.

Make the assessment as an ANMF Excise Tax Account including any identified accrued interest using a TC 150.

The tax period should always be the year and the month that the Commissioner signed the agreement. For example: July 15, 2002 (date) would be 200207.

Proper journalization is necessary to ensure the integrity and the balancing of the RACS and ANMF Systems. RACS will pre-journalize the assessment for the entire amount to Account 1300 in Status 89. RACS will send the package to ANMF to establish an account through the LOAD Acct/Transfer-In Screen.

The closing agreement may allow payments over a period of years. The agency will have specific responsibilities for the payment written in the agreement. Each year prepare and mail Form 6335 to the taxpayer for that year’s portion of the total tax plus interest, if applicable. Send a copy of Form 6335 to Returns Files. Tailor the bill to the individual closing agreement conditions. Show the total outstanding tax and then the payment due for that year (similar to an installment agreement). The agreement will include special instructions in case the agency fails to make a payment. This will include notice of default, and assessment of penalties and interest.

Closing agreements received with full paid or partial remittance are processed as two documents. The first document (closing agreement) will establish the assessment on the ANMF system, and the second document (Form 3244A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to taxpayer.

The closing agreement (first document) is numbered as follows:

The Form 3244A (second document) is numbered as follows:

Closing Agreements received without payments are billed according to instructions received with the agreement. They are numbered as follows:

IRC 4103 imposes a liability for certain excise taxes on additional persons beyond the business taxpayer. The personal liability for excise tax is a joint and several liability. It applies to gasoline, diesel fuel, and aviation fuel excise taxes imposed by IRC 4081 or IRC 4091. When assessed against an individual, he or she will owe the same tax liability as the business taxpayer who filed Form 720, Quarterly Federal Excise Tax Return.

Assessment of the personal liability for excise tax will be processed through NMF until Master File programming is completed. These assessments will be received in NMF on Form 9494, Request for Assessment of Personal Liability for Excise Tax. These assessments will be processed as NMF Daily Assessments. A "Linked Account" is added to identify duplicate assessments. See IRM 3.17.46.13.8, Linked Accounts.

The Form 9494 for NMF assessments is numbered as follows:

RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

NMF will receive the Form 813 and assessment documents from RACS and input the assessments through the Daily Assessment option from the Processing menu to generate the first notice (Form 6335).

Determine the type of assessment. The assessment type will be indicated on Form 9494 and the codes for the Assessment Type field are below:

Distribution for Quick, Prompt and Jeopardy assessments: Form 6335 will be sent to the originator. The Form 6335 for the Jeopardy assessment will also be associated with the TDA and forwarded to the originator.

Distribution for all regular assessments: mail Form 6335 to the taxpayer. Along with the Form 6335, include Notice 996, which is an explanation to the taxpayer concerning the assessment. A copy of Form 6335 will be forwarded to the originator.

Form 9494, part 1, will be retained as the assessment document. Part 2 will be sent to the proper Area Office Special Procedures (SPf) or Collection Support function (CSf).

Forward part 1 of Form 9494 and Form 813 to Returns Files after NMF monthly balancing is completed.

Standard subsequent notice and TDA billing will apply.

Occasionally, the Revenue Officer requesting the assessment will know that the assessment will be uncollectible. Form 53, Report of Currently Not Collectible Taxes, will be received along with the request for assessment, Form 9494.

When the full amount of the Personal Liability for Excise Tax is collected, the remaining liabilities will be abated.

The responsibility for initiating and approving abatements and refunds on these accounts lies with the Special Procedures Function in the area office that controls the case.

Collection will prepare Form 1331, Notice of Adjustment, requesting an abatement of assessment. This form will be forwarded to Accounting for input to the ANMF.

The Form 1331 will be assigned a DLN with doc. code 54.

If the account is in TDA status and an adjustment posts leaving a debit balance, a new TDA must be issued. Forward the TDA to the Collection Support function (CSf).

If the adjustment is later determined to be erroneous, the CSf will reverse the adjustment and reinstate the liability using the original assessment date. Collection will prepare Form 3870 and a Memorandum of Authority requesting the reversal of the adjustment. A new TDA must be issued and forwarded to CSf.

MFT 31 allows accounts requiring split processing to remain on the Master File. Split processing cases require that a joint IMF account be separated into two and sometimes three accounts. Prior to January 2001, these accounts i.e., bankruptcy, culpable spouse, innocent spouse, non-petitioning/petitioning spouse, offer in compromise, were processed on ANMF.

Effective January 1, 1998 all credit elects are posted to the ANMF Database.

Remit and No-Remit Extensions of Time to File are numbered with the doc. code of the return the extension applies to and sent to Code and Edit for approval.

The Code and Edit function will send approved and disapproved extensions to RACS journalization.

No-Remit Extensions:

Remit Extensions:

When NMF receives the related return , the DBA must make a DBA Correction to change the tax period ending of the extension account to a Dummy period.

If additional tax, penalty, and interest is due, NMF will establish an account for the additional assessment amount over the extension assessment amount through the Weekly Assessment option from the Processing menu.

If the tax on the return is less than the extension, then NMF will:

IRC 1362(f)(4) allows the IRS to enter into an agreement, via a Private Letter Ruling (PLR), hereafter referred to as "Ruling Letter" , with certain S Corporations to waive the termination of their S election. The Ruling Letter is sent by email from the Headquarters to the Kansas City Submission Processing Campus along with a memorandum.

Use the Ruling Letter as the authority for assessment and as a substitute return.

The intent of the agreement is to establish an account on the ANMF System that will allow the taxpayer to make one payment of the full amount by a designated due date assigned by Chief Counsel, without computing accruals or generating billing notices. The attorney sends the Ruling Letter to the taxpayer at the same time a copy is emailed to the Kansas City Submission Processing Campus for assessment. The Ruling Letter also provides the taxpayer with the address of the Kansas City Campus for purposes of sending the payment for processing.

Although the adjustment covers multiple tax years, only one NMF account is established for each Ruling Letter, assessing the full amount stated in the letter using a Transaction Code 290.

These assessments are numbered as follows:

RACS will pre-journal the assessment and will input the Form 813 information into the Block Control screen.

RACS will send the Form 813 and assessment document to NMF for processing.

NMF will establish the account onto the ANMF system using the Daily Assessment option from the Processing menu. Field entries unique to these assessments are as follows:

On the following day, after the account has posted to the database, prepare and number a Form 3177 to input a TC 470 closing code 90 as a subsequent transaction. This will suspend notice issuance until the taxpayer has made full payment.

Care must be taken to ensure that a Penalty and Interest notice is not mailed to the taxpayer if generated. This is a one-time payment where NO penalty or interest should accrue or be assessed.

After 90-days have elapsed, an Accounts Maintenance transcript is generated and used to review the account. If the full payment is not received and applied, the account and Ruling Letter should be reviewed to determine when the payment is due. If the payment is past due contact the ANMF Analyst in Headquarters for further action.

A one-time project for Form 1120 FSC processing returns and payments occurred prior to 1990 which may have not posted to the BMF or NMF. The NMF Unit in the Kansas City Submission Processing Campus keeps a listing of these documents for research purposes. Contact the NMF Team Manager for research of the listing.

A termination assessment occurs when a field officer determines that unusual and perhaps illegal means were used to acquire certain goods or cash. Most requests are received by fax and are used to abruptly terminate the taxpayer's tax year. This results in a short period return which is processed as an NMF return. See IRM 3.17.46.5.1, Daily Assessments.

RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and include the 23C date on the Form 813.

RACS will send the Form 813 and the assessment documents to NMF for processing.

NMF will establish the assessment (account) by input through the Daily Assessment option from the Processing menu which will generate Form 6335 (1st notice). Field entries unique to this assessment are as follows:

When generated, use the TDA transcript as the source document to establish the account on IDRS and distribute the Form 6335 as follows:

Hold the telephone assessment document until the Form 2644 with the supporting documents are received from the area office. When received, associate with the original telephone document used to make the assessment.

Send assessment documents to Returns Files after NMF processing is completed.

The American Jobs Creation of 2004 provides the IRS with the authority to impose a monetary penalty against any representative that practices before the IRS for certain conduct. Before the 2004 Act, there was only the authority to suspend or disbar a practitioner from practice before the IRS. This monetary penalty is processed under Title 31 U.S.C. 330 and should be a minimal volume.

Title 31 Monetary Penalty cases are exclusively handled by the Office of Professional Responsibility (OPR). OPR is also responsible for:

OPR will enter into a Settlement Agreement (similar to a closing agreement) with the individual practitioner, firm, or entity. Headquarters will send the Settlement Agreement to the Kansas City Submission Processing Campus via memorandum. Use the Settlement Agreement as authority for assessment and a substitute return.

The assessment is made as an Excise Tax using TC 240.

The tax period should always be the year and month that the Director of OPR or his/her designee signed the agreement. For example, January 31, 2011 (date) would be 201101.

Proper journalization is necessary to ensure the integrity and balancing of the RACS and ANMF systems. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 Status 89. RACS will send the package to ANMF to establish an account through the Load Acct/Transfer screen.

Settlement Agreements or Final IRS Decisions received with full paid or partial remittances are processed as two documents. The first document (Settlement Agreement or Final IRS Decision) will establish the assessment on the ANMF system, and the second document (Form 3244-A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to the taxpayer by OPR.

The Settlement Agreement or Final IRS Decision (first document) is numbered as follows:

The Form 3244-A (second document) is numbered as follows:

Settlement Agreements or Final IRS Decisions received without payments are billed by OPR. Payment is sent to OPR who will then overnight express to the Deposit Unit in Kansas City.

OPR will calculate the interest and prepare Form 3465 for assessment. OPR will fax or send Form 3465 to the attention of the NMF Manager in the Kansas City Submission Processing Campus.

When the liability of an account is transferred from one TIN (transferor) to another (transferee) this transfer of liability is processed and the account is maintained in NMF. Most requests are received on Form 1296, Assessment Against Transferee or Fiduciary, or Form 2859, from the Examination Division. A "Linked Account" is added to identify duplicate assessments. See IRM 3.17.46.13.8, Linked Accounts.

NMF will establish an account on the ANMF System through the Daily Assessment option from the Processing menu.

Once the Form 6335 is generated, NMF will input the account to IDRS using the account transcript as the source document.

Mail Form 6335 to the taxpayer, send a copy of Form 6335 to the Examination function and to CSCO.

Any Form 2749 request received for Trust Fund Recovery Penalty assessment, Reference Code 618, with an Employer Identification Number (EIN) is processed through NMF. Requests received for Trust Fund Recovery Penalty assessments with an SSN are not processed through NMF but are processed as MFT 55 to the IMF Civil Penalty Module through IDRS. A "Linked Account" field is added to identify Duplicate Assessments. See IRM 3.17.46.13.8, Linked Accounts.

The Form 2749 for NMF Trust Fund Recovery Penalties is numbered as follows:

RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

NMF will receive the Form 813 and assessment documents from RACS. NMF will establish the assessment (account) by input through the Daily Assessment option from the Processing menu which will generate the first notice (Form 6335).

Field entries unique to this assessment are as follows:

Distribution for Quick, Prompt and Jeopardy assessments: 2 copies of Form 6335 will be routed to the proper Area Office via Form 3210. For all regular assessments mail 2 copies of Form 6335 to the taxpayer. In both situations, send Form 6335 part 3 to the originator.

Establish the account on IDRS using the generated NMF account transcript as the source document.

Send part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

A Transcript of a Trust Fund Recovery Penalty account will be generated for distribution to BSC (Brookhaven Service Center) or OSC (Ogden Service Center) CSCO each time payments, credits, abatements or other transactions are posted to the account. Determine distribution of transcripts using the chart below.

When Collection requests transfer of an account because of TDA transfer, refer to IRM 3.17.46.9, Establishing and Updating NMF TDA Accounts on IDRS, for establishing NMF TDA accounts on IDRS.

Accelerate Trust Fund Recovery penalty to TDA status immediately.

The responsibility for input of a TC 130 on all Trust Fund Recovery penalty cases lies with the Collection Division. Accounting will not input a TC 130 for these cases.

Special Procedures Function (or) in the area that controls the case has the responsibility for initiating the approving abatements and refunds on Trust Fund Recovery Penalty accounts.

Occasionally, the Revenue Officer requesting the assessment will know that the assessment will be uncollectible. Form 53, Notice of Currently Not Collectible Status, will be received along with the request for assessment, Form 2749.

The Transfer function will prepare Form 514-B from the Master File and prepare Form 813 to process as follows:

The NMF function will load the new account onto the ANMF System through the Load Old ACCTS/TRANSFER-IN screen. Enter the Notice Type field as follows:

Enter the Cross-Reference information as follows:

The ANMF system allows for only one 23C date per account. It is extremely important to ensure that the transfer function has picked-up the correct 23C date for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

If the message "Account with this Primary Key already exists on the database" appears at the bottom of the screen during the input of the entity information, research to determine if this account is a true re-transfer-in. In this case, follow the instructions below.

Entry through the Load Old ACCTS/TRANSFER-IN screen will automatically generate an account transcript the next day. These transcripts will be distinguished from the requested transcripts by the "99999–99999" in the employee number field on the transcript. The NMF function will verify the transcripts to the Form 514-B for accuracy of all entries. If there is an error, prepare DBA correction request.

NMF will forward the following to the Account Transfer function:

The Account Transfer function will send the below items to the RACS function who will input the account (pre-journalized) to RACS and annotate the RACS journal number on the supporting documentation:

NMF will send to Cycle Control after NMF processing is completed.

The Transfer function will prepare Form 3413 and Form 514-B for either Master File or NMF accounts respectively. Attach a current NMF transcript. Number the documents with a 51 doc. code and forward to the RACS function.

The RACS function will establish the transfer onto the ANMF System using the Form 813 Block Control screen and forward the documents to the NMF function.

The NMF function will expeditiously input the TC 400 to the ANMF System through the Enter Sub Pays option from the Processing menu. When the TC 400 posts to the account (the next day):

If the TC 400 goes unpostable because the TC 400 account balance amount does not equal the account balance reflected on the ANMF System, a unpostable code (UPC) 040 transcript will be generated at that time.

The Transfer function will receive the nullified cases from the RACS function with the account transcript and prepare the corrected Form 514-B and forward it to the RACS function.

The RACS function will re-establish the account with a new DLN using the Form 813 Block Control screen and forward to the NMF function.

An NMF account in status 71 or 89 (TC 520) should not be transferred to Master File. Contact the responsible function to resolve the status condition prior to the transfer. A TC400 is input only to accounts in notice or TDA status.

The only accounts that are transferred from another campus to Kansas City Submission Processing Center (KCSPC) NMF are either Master File Overflow or Reversal of Erroneous Abatement accounts. In both instances, the Master File account may have to be split into several NMF assessments when moved from the Master File to NMF. Each separate assessment on the Master File module becomes a separate account on NMF.

Internal Revenue Code 2603(a)(2) provides that the Generation-Skipping Transfer (GST) tax imposed on a direct skip from a trust is to be paid by the trustee. Schedule R–1 (Form 706, U.S. Estate Tax Return) serves as a payment voucher for the trustee to remit the GST tax to the Internal Revenue Service.

The Schedule R–1 (Form 706) is due to be filed and the tax paid by the trustee nine-months after the date of death, but a 2-month extension is automatically granted to file and pay the tax. If the form is filed and tax paid during the 2-month extension period, interest is charged, but no penalties are assessed.

Receipt and Control Branch will forward the schedules to Returns Analysis for code and edit, math verification and computation of penalties and interest.

The schedule is processed as a 706B return and numbered as follows:

Returns Analysis will forward perfected schedules to RACS for input to the Form 813 Block Control screen. RACS will then forward Form 813 and the related documents to NMF for further processing.

NMF will first research IDRS for the DLN of Form 706 for association of the schedule with the return after processing and to input to the Cross-Reference field when the account is established.

NMF will then establish an account on the ANMF System through the Weekly Assessment option from the Processing menu. Input the related Form 706 DLN, decedents name, and TIN to the Cross-Reference field of the entity screen.

Regular billing schedule and accounts maintenance will apply.

Send Schedules R–1 to files to be attached to the Form 706 after NMF processing is completed. Send a Form 10023-B, Attachment (To Be Associated With Return) to Cycle Control to cross-reference the Schedule R–1 DLN to the Form 706 DLN.

Current regulations require that Form 706-A be filed, and the tax paid within six-months after qualified property ceases to be Section 2032A property.

Code and Edit will compute interest from the due date of the return to the date of payment on the entire balance due at the rates and periods prescribed in IRM 20.2, Interest. The due date (which is after the date of disposition) of the Form 706-A will appear in the top margin of the return.

RACS will receive the Form 706-A and Form 813 for input through the Form 813 Block Control screen.

The block of documents is numbered as follows:

RACS will forward the Form 813 and the assessment documents to NMF for processing.

NMF will establish the account on the ANMF System through the Weekly Assessment option from the Processing menu.

Form 706-A is processed as any normal remit/non-remit NMF return. Standard billing schedule and accounts maintenance will apply.

Send the assessment documents to Cycle Control after NMF processing is completed.

Form 706-QDT is based on Code Section 2056(d) and 2056(a) enacted by the Technical and Miscellaneous Revenue Act of 1988 and amended by the Revenue Reconciliation Act of 1989. The Qualified Domestic Trusts (QDT) rules are effective for estates of decedents dying after November 10, 1988.

The trustees or designated filer of a qualified domestic trust (QDT) uses Form 706-QDT to figure and report the estate tax due on certain distributions from the QDT and on the value of the property remaining in the QDT on the date of the surviving spouse's death. A QDT applies only in those situations where a decedent's surviving spouse is not a U.S. citizen.

Form 706-QDT is numbered as follows:

Returns Analysis will code and edit, math verify, and compute penalties and interest due on these returns.

Perfected returns are sent to RACS for input to the Form 813 Block Control screen.

RACS will send Form 813 and the assessment documents to NMF for processing.

NMF will establish the account on the ANMF system through the Weekly Assessment option from the Processing menu.

The standard billing schedule and accounts maintenance will apply.

Send the forms to Cycle Control after the monthly balancing is completed.

These returns are filed to report income received by foreign estates or trusts. Form 1040-NR filed by Non-Resident individuals are processed to Master File. Form 1040-NR filed as Fiduciary Returns are processed to the ANMF system.

RACS will receive these returns and input Form 813 information through the Form 813 Block Control screen.

The block is numbered as follows:

RACS will forward the Form 813 and the 1040-NR to NMF for processing.

NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

Refunds—Overpayments on returns are processed on ANMF. Form 3753, Manual Refund Posting Voucher, will be prepared as instructed in IRM 21.4.4.5, Preparation of Manual Refund Forms. The refund is scheduled using manual refund procedures. Enter in the cross-reference field Refund and the amount of the refund.

Credit Elect—If the return is noted that the credit should be applied to the next tax year, enter in the cross reference field "Credit Elect MMDDYY" (month, day, year) and the amount of the credit elect.

Allocation of Withholding – Trusts can elect to allocate withholding to beneficiaries. Code and Edit will edit an X next to the allocation amount, so it is not picked up during the return processing. If indicated on the return, provide a copy to the Account Specialist to prepare a Form 3809 with a TC 802 to transfer the allocation amount to the 6550 Account.

Balance Due—Standard billing procedures will apply.

Form 3809 will be prepared to post TC 710 (credit elect from prior year).

Send documents to Cycle Control after NMF processing is completed.

Form 1042 and Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, will be verified by Adjustment Branch to determine that correct rates were used, and the proper amount of taxes were withheld from non-resident aliens. The withholding agent will be liable for any tax that is under-withheld.

The Adjustment area will prepare a Form 5734, Non-Master File Assessment Voucher, and attach to the original return showing the amount of tax to be assessed against the withholding agent. The Form 5734 and the original return will be forwarded to Accounting for assessment and billing. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

RACS will receive Form 5734, and the original return from Accounts Management and input the Form 813 information into the ANMF System using the Form 813 Control screen. Number the block of documents as follows:

RACS will forward Form 813, Form 5734 and the original return to NMF for processing.

NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu using Form 5734 and the original return.

If a balance due condition exists, the standard NMF billing schedule and accounts maintenance will apply.

Payments received are processed as normal NMF payments and a copy of the notice is used as a supporting document for posting to the NMF account.

Payments secured by revenue officers are entered on Form 3244, Payment Posting Voucher, which is used as a supporting document for posting to the NMF account.

Account reviews are performed systemically; credit balances will generate a credit balance transcript and be resolved as required. See IRM 3.17.46.11.4, Credit Balance-Refund Returns.

Send the assessment documents to Cycle Control after NMF processing is completed.

Form 1065, U.S. Partnership Return of Income, which cannot be processed to Master File because the module balance is $10 billion or greater are sent to the Accounting Function for processing to NMF. RACS will receive these returns and input Form 813 information through the Form 813, Block Control screen.

Form 1065 is numbered as follows:

NMF will establish an account on the ANMF system through the Weekly Assessment option from the Processing menu.

Balance Due-Estimated (ES) tax payments of 10 billion dollars or more will be located in the 4610 account. The return should indicate that ES payments have been made. Research the 4610 account and transfer all payments to NMF. Standard billing will apply.

Form 1120-IC-DISC, Interest Charge Domestic International Sales-Corporation Return, is an information return filed by Interest Charge Domestic International Sales Corporations (IC–DISCs) and former DISCs. After the tax year ends the IC–DISC makes a pro rata property distribution to its shareholders and specifies at the time that this is a distribution to meet the qualification requirements. If the IC–DISC makes this distribution after the date Form 1120-IC-DISC is due, an interest charge must be paid to the Internal Revenue Submission Processing Campus where the form was filed. The charge is 4 percent of the distribution times the number of tax years that begin after the tax year to which the distribution relates until the date the IC–DISC makes the distribution. This payment may be identified from a taxpayer's reference to interest charge under regulations section 1.992–3(c)(4).

If there is no tax to be assessed and there is no evidence of a payment with the Form 1120-IC-DISC, prepare an index card through the Index Card process.

Process all returns with evidence of a payment as full–Paid Return. If there is evidence of a payment with Form 1120-IC-DISC, RACS will prepare a Form 813. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and forward the Form 813 and Form 1120-IC-DISC to NMF for processing.

The block of documents is numbered as follows:

If there is evidence of a payment, NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

After processing is complete forward the Form 1120-IC-DISC to the Cycle Control Function.

These returns are received separately batched in blocks of remittance and non-remittance returns. Form 2438 is assessed as normal NMF returns but require special handling since Federal Tax Deposits must be transferred from BMF to satisfy the tax liability prior to notice issuance.

RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

The block of documents is numbered as follows:

RACS will forward the Form 813 and the assessment documents to NMF for processing.

NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

Send the assessment documents to Cycle Control after NMF processing is completed.

In rare case Exempt Organizations may file Form 990T, Exempt Organization Business Income Tax Return, to claim a refund of taxes paid on their behalf by the Regulated Investment Company. These claims are normally received by the Accounts Management Branch who would then request an abatement (Form 1331B). See IRM 3.17.46.3.6, Certification of Overassessments, to process the overassessment.

Form 4720 is used to report the excise taxes on Private Foundations, Public Charities, Self-Dealers, Disqualified Persons, Foundation Managers and Organization Managers for activities which are not in accordance with the charitable purpose. It provides for the assessment of tax against an organization as well as an individual. Generally, Form 4720 must be filed by the due date for filing Form 990PF, Form 5227, Form 990, and Form 990EZ.

Form 4720 are processed by Ogden Submission Processing Campus (OSPC). They will determine if a Form 4720A is required based on information in Part II and the signature area on page 6. If required, Form 4720A is prepared and routed to NMF for processing.

Processing procedures are different depending on who is filing the return. NMF will receive Form 4720A for processing if the:

RACS will receive Form 4720A and Form 813 for input through the Form 813 Block Control screen.

Form 4720A is numbered as follows:

Abstract Numbers —various:

NMF will establish an account on the ANMF system through the Weekly Assessment option from the Processing menu.

Balance Due-research Master File to locate all payments/credits and transfer to NMF. Standard billing will apply.

Shareholders of Interest Charge Domestic International Sales Corporations (IC–DISCs) use Form 8404, Computation of Interest Charge on DISC-Related Deferred Tax Liability, to figure and report their interest on DISC related deferred tax liability.

The Receipt and Control or Document Perfection function will forward all Form 8404 remittance returns to RACS for input to the ANMF System using the Form 813 Block Control screen. Number the document as follows:

RACS will forward the Form 8404 and Form 813 to NMF for processing.

NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

The standard billing schedule and accounts maintenance will apply.

Send the Assessment documents to Cycle Control after the NMF processing is completed.

Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts, and Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies are processed as NMF. Both returns are due March 15 of the year following the year to which the liability applies. NMF WILL NOT pre-search Form 8612 and Form 8613 prior to processing to ANMF.

Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit, math verification.

Number Form 8612 as follows:

Form 8613 is numbered as follows:

Send perfected returns to RACS for input of the Form 813 information to the ANMF System using the Form 813 Block Control screen.

Send Form 8612 and Form 8613 to NMF from RACS Unit for normal NMF processing.

Send returns to Cycle Control after NMF processing is completed.

Effective May 9, 2010, ANMF will resume processing Refund Form 8697 and Form 8866 only when there is no return (TC 150) posted on MF. This is an interim process until further notice.

Effective January 1, 2005, Form 8697 and Form 8866 are processed as BMF or IMF for Form 1120, Form 990T, and Form 1040. In July 2005, Form 8697 related to Form 1041 and Form 1065 are processed as BMF. NMF only processes these forms if there is no return (TC 150) on MF.

The Tax Reform Act of 1986, under Section 460(b)(3) requires issuers of long term contracts (more than one tax year) entered into after February 28, 1986, to re-evaluate after the completion of the contract, the actual income/costs to those estimated at the beginning of the contract. A computation of the interest resulting from the discrepancies in taxes paid and taxes that should be paid each year is required. This computation results in interest either owed by the taxpayer or to be refunded to the taxpayer. The Form 8697 is used to compute and report the interest due or to be refunded.

The Form 8697 are attached to Form 1120, Form 990T, or Form 1040 and are filed and processed on the Master File. If the form is not treated as an attachment and is filed separately by the taxpayer for a refund, it will continue to be processed through NMF when there is no return (TC 150) posted on MF. This is the only situation that requires NMF processing.

Refund Form 8697 is processed through the Accounts Management function.

Refund Claims on Form 8697

Send Form 8697, Form 1331B and Form 813 to Cycle Control after NMF processing is completed, unless Form 3696, Correspondence Action Sheet, or Form 3465 Adjustment Request, is attached. Send returns with Form 3696 to the Correspondence function. Send returns with Form 3465 to the Accounts Management function. If both forms are attached to the return, forward to the Correspondence function. Form 2275, Records Request, Charge and Recharge, is placed in the block in lieu of the document.

Refund Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method, are processed on NMF using the exact same procedures as Form 8697.

Form 8725, Excise Tax on Greenmail, is used to report and pay the 50 percent excise tax imposed under IRC 5881. The term greenmail means, within certain limitations specified in IRC 5881, any amount a corporation (or, for transactions occurring after March 30, 1988, any person acting in concert with a corporation) pays to a shareholder to directly or indirectly acquire its stock.

Form 8876, Excise Tax on Structured Settlement Factoring Transactions, is used to report and pay 40 percent excise tax imposed under IRC 5891. The Excise tax is equal to 40 percent of the undiscounted amount of the payments being acquired, over the total amount actually paid to acquire them.

RACS will receive the Form 8725 and Form 813 for input through the Form 813 Block Control screen. Form 8725 is numbered as follows:

RACS will receive the Form 8876 and Form 813 for input through the Form 813 Block Control screen. Form 8876 is numbered as follows:

RACS will forward the Form 8725 or Form 8876 and Form 813 to NMF for normal processing.

NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

Form 8725 and Form 8876 is subject to late filing and late payment penalties if not filed or paid on time.

The standard billing schedule and accounts maintenance will apply.

Send the returns to Cycle Control after NMF processing is completed.

Form 8831 is used to report and pay excise taxes on any transfer of a residual interest in a REMIC (Real Estate Mortgage Investment Conduit) to a disqualified organization or any transfers of a residual interest in a pass-through entity. The tax applies to those transfers made after March 31, 1988 (unless the transfer was made under a binding contract in effect on that date). The earliest filing date for this return is March 24, 1993. Due to the small number anticipated nationwide, these returns are processed on ANMF.

Document Perfection will forward all perfected returns to RACS for input to the Form 813 Block Control screen.

The block of documents is numbered follows:

RACS will forward the documents and Form 813 to NMF for processing.

NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

The standard billing schedule and accounts maintenance will apply.

Form 8831 which have "RTC RECEIVERSHIP" written at the top of the document cannot be processed using existing IRM procedures. Follow a. though e. below:

Send the returns to Cycle Control after NMF processing is completed.

The Tax Relief and Health Care Act of 2006 (P.L. 109-432), Section 403, enacted a new Form 8924 for the computation and reporting of the excise tax due on the Transfer of Certain Qualifying Geothermal or Mineral Interests by an eligible entity. The return is due by the 90th day following the taxable transfer.

Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit.

Form 8924 is numbered as follows:

Send Perfected returns to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

RACS will forward Form 8924 to NMF for normal ANMF processing as follows:

Send returns to Cycle Control after NMF processing is completed.

The Tax Relief and Health Care Act of 2006 (P. L. 109-432), Section 403, enacted a new Form 8928 for the computation and reporting of Excise taxes due on Sections 4980B, 4980D, 4980E, and 4980G for failures by group health plans or employers. The due date of the return is dependent on the Section as follows:

Receipt and Control Branch will forward the accounting package to RACS and the return to Returns Analysis for code and edit.

Form 8928 is numbered as follows:

Send perfected returns to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

RACS will forward Form 8928 to NMF for normal ANMF processing as follows:

Send returns to Cycle Control after NMF processing is completed.

Form CT-2, Employee Representative’s Quarterly Railroad Tax Return is processed as NMF. This is a quarterly filed return, due 2 months after the end of the quarter.

RACS will receive these returns and input Form 813 information through the Form 813 Block Control Screen.

The block is numbered as follows:

RACS will forward the Form 813 and the CT-2 to NMF for processing.

NMF will establish the account on the ANMF System through the Weekly Assessment option from the Processing menu.

An NMF Accounts Flagged for Notices/TDA listing is generated weekly is a list of accounts on which a notice or TDA is being issued. This listing is used:

Form 6335 is the taxpayer's 1st notice generated from the ANMF system for accounts that have a balance due. Generation of the first notice is also dependent on an entry to the Notice Type field during the establishment of the account on the database.

Figure 3.17.46-13

Form 6335 NMF First NoticeShown is the NMF first notice of balance due to the taxpayer. The notice consists of the following:Notice DateSSN/EINTaxpayer NameStreet AddressCity, State and Zip CodeREMINDER - YOU STILL OWE $(balance due)The body of the notice reads as follows:According to our records, you have not paid the additional federal tax you owe based on an examination of your tax return for the tax period shown below. Please pay it today. To avoid additional penalty and interest, pay the full amount you owe now. We can file a Notice of Federal Tax Lien if your balance owed is not paid within XX days from the date of this notice. If you already paid your balance in full or arranged for an installment agreement. please disregard this notice.Account Summary includes Tax Form, Tax Period and Amount DueThe amount due may include penalty and interest. If you have any questions concerning the amount due or penalty and interest computation, please call 1–888–829–7434.The bottom portion of the notice is a payment stub and reads as follows: Please mail this part with your payment, payable to the United States TreasuryTo ensure proper crediting, write the following on your check: (Form/MFT/TaxPer/TIN) Reply to Internal Revenue ServiceThe bottom portion also includes the Notice Date, DLN, Amount Due, and Taxpayer's name and address.

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Figure 3.17.46-14

Form 6335 NMF First Notice for Trust Fund Recovery PenaltyNMF first notice of balance due notifying the taxpayer of a Trust Fund Recovery Penalty assessment. The notice consists of the following:Notice DateSSN/EINTaxpayer NameStreet AddressCity, State and Zip CodeREMINDER - YOU STILL OWE $(balance due)The body of the notice reads as follows:According to our records, you have not paid the federal tax you owe for tax period MM/DD/YYYY. To avoid addition penalty and interest, pay the full amount you owe now.Account Summary includes Tax Form, Tax Period and Amount DueTo request relief from the Trust Fund Recovery Penalty that we previously wrote to you about, you must take the following actions within 30-days from the date of this notice: Pay the withheld tax for one employee for one quarter of the liability; File a claim for refund on Form 843, Claim for Refund and Request for Abatement, of the amount paid; andPost a bond with the Internal Revenue Service for one and a half times the balance (penalty minus the amount of payment made).The amount due may include penalty and interest. If you have any questions concerning the amount due or penalty and interest computation, please call us at 1-833-972-8965.See enclosed Publication 594 that explains your rights and responsibilities as a taxpayer.The bottom portion of the notice is a payment stub and reads as follows: Please mail this part with your payment, payable to the United State TreasuryTo ensure proper crediting, write the following on your check: (Form/MFT/Tax Per/TIN) Reply to Internal Revenue ServiceThe bottom portion also includes the Notice Date, DLN, Amount Due, and Taxpayer's name and address.

Please click here for the text description of the image.

Figure 3.17.46-15

Form 6335 NMF First Notice to an Officer or EmployeeNMF first notice of balance due to any officer or employee of the Treasury Department. The notice consists of the following:Notice DateSSN/EINTaxpayer NameStreet AddressCity, State and Zip CodeREMINDER - YOU STILL OWE $(balance due)The body of the notice reads as follows:According to our records, you have not paid the federal tax you owe for tax period MM/DD/YYYY. To avoid additional penalty and interest, pay the full amount you owe now.Account Summary includes Tax Form, Tax Period and Amount DueIf any officer or employee of the Treasury Department acting in connection with the Internal Revenue laws fails to account for and pay over any amount of money or property collected or received by him/her in connection with the Internal Revenue laws, the Secretary will issue notice and demand, and the provisions of Chapter 64 and all other provisions of law relating to the collection of assessed taxes will be applicable in respect of such amount.If you wish to appeal this action, you must first pay what you owe within 10-days from the date of this notice and then file a claim from refund on Form 843, Claim for Refund and Request for Abatement. If you are no satisfied with the administrative disposition of your claim, your recourse is to file suit with the appropriate United States District Court. If you already paid your balance in full, please disregard this notice.The amount due may include penalty and interest. If you have questions concerning the amount due or penalty and interest computation, please call us at 1-833-972-8965.See enclosed Publication 594 that explains your rights and responsibilities as a taxpayer.The bottom portion of the notice is a payment stub and reads as follows: Please mail this part with your payment, payable to the United State TreasuryTo ensure proper crediting, write the following on your check: (Form/MFT/Tax Per/TIN) Reply to Internal Revenue ServiceThe bottom portion also includes the Notice Date, DLN, Amount Due, and Taxpayer's name and address.

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Date and mail all first notices to conform with the actual assessment date (23C date).

Notice issuance for Quick and routine 23C assessments will follow a regular six-week schedule after the first notice.

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Send the fourth notice (figure 3.17.46-18) by certified mail. These notices will be hand carried from accounting to the shipping function. Kansas City Campus must obtain labels with certified mail numbers from the local post office for mailing of these notices.

Figure 3.17.46-16

Form 4840 NMF Fourth Notice to the TaxpayerNMF fourth notice of balance due to the taxpayer. This is the notice of intent to levy. The notice consists of the following:Notice DateSSN/EINTaxpayer NameStreet AddressCity, State and Zip CodeURGENT The body of the notice reads as follows:We intend to levy on certain assets. Please respond NOW. (To avoid additional late payment penalty and interest, pay your overdue liability now.) Our records indicate that you haven't paid the amount you owe. The law requires that you pay your tax at the time you file your return. This is your notice, as required by IRC 6331(d), of our intent to levy (take) any State Tax refunds you may be entitled to if we don't receive your payment in full. In addition, we will begin to search for other assets we may levy. We can also file a Notice of Federal Tax Lien, if we haven't already done so. TO PREVENT COLLECTION ACTION, PLEASE PAY THE CURRENT BALANCE NOW. If you have already paid, can't pay, or have arranged for an installment agreement, it is important that you CALL US IMMEDIATELY at the telephone number shown below.Account Summary includes Tax Form, Tax Period and Amount DueFor assistance or information on your Penalty or Interest Computation call us at 1-833-972-8965.See enclosed Publication 594 that explains your rights and responsibilities as a taxpayer.The bottom portion of the notice is a payment stub and reads as follows: Please mail this part with your payment, payable to the United States TreasuryTo ensure proper crediting, write the following on your check: (Form/MFT/Tax Per/TIN) Reply to Internal Revenue ServiceThe bottom portion also includes the Notice Date, DLN, Amount Due, and Taxpayer's name and address.

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Research the ANMF system, Master File, 4610 account, and 4430 account for advanced or misapplied payments. Use extreme caution to ensure that the payment belongs to the taxpayer's account. Use the RTR, Remittance Transaction Research, system to ensure proper posting of the payments.

Research Master File to ensure that the notice is issued to the most current address. If more current address is located on Master File:

All notices are sent by certified mail using envelope E125–L. Since a separate log needs to be maintained for registered items, a Registered Mail List is generated by the ANMF System with the notices.

Input a history item on the account indicating whether or not the notice was sent.

If the account is a true NMF assessment (will not be transferred to a Master File) and is a Prompt, Jeopardy or Termination assessment, associate two copies of Form 6335 with the duplicate copy of Form 2859 with the TDA. If the account is a Trust Fund Recovery Penalty, Quick, Prompt or Jeopardy Assessment, forward two copies of Form 6335 and Form 2749 (parts 3 and 4) with the TDA to CSCO. See IRM 3.17.46.7.9 for TDA issuance.

If an NMF return is received containing an increase in tax resulting from a mathematical error, enclose Notice 746, Information About Your Notice, Penalty and Interest, with parts 1 and 2 of Form 6335 to be sent to the taxpayer.

Several types of assessments have an irregular time interval between the issuance of the first notice and other subsequent notices.

If a balance due notice is undeliverable or the taxpayer indicates an inability to pay, See IRM 3.17.46.7.7 Undelivered NMF Notices, for further instructions.

The input of a "Yes" to the POA field on the Weekly Assessment screen at the time the account is established will generate a listing of NMF accounts on which any notice is being issued and a POA exists. This listing is not all-inclusive therefore, Research CC CFINK for all notices to determine if there is a POA on CAF, Centralized Authorization File. See Exhibit 3.17.46-10, NMF/MF Compatible MFTs for Power of Attorneys, for compatible MF MFTs.

Form 9774 (Figure 3.17.46-19) is issued annually to remind taxpayers of a balance due on a tax module that has been in Currently Non-Collectible (CNC) status 24 (Collection Queue) and status 60 (Installment Agreement) on ANMF for 365-days or more. These notices will be generated weekly for mailout.

A 100 percent review of all Forms 9774 must be done prior to mailout.

Research the ANMF system, Master File, 4610 account, and 4430 account for advanced or misapplied payments. Extreme caution must be taken to ensure that the payment belongs to the taxpayer's account. RTR, Remittance Transaction Research, system should be utilized to ensure proper posting of the payments.

Research Master File to ensure that the notice is issued to the most current address. If more current address is located on Master File:

Research CAF by using CC CFINK to determine if there is a POA on file for all notices. See Exhibit 3.17.46-10, NMF/MF Compatible MFTs for Power of Attorneys, for compatible MF MFTs. If there is “Y” in the POA field the account will appear on the Notice Due—Power of Attorney (POA) on File List.

Mail notice to taxpayer and input a history item on the account indicating whether or not the notice was sent.

Forms 9774 which full-pay the account will be routed to the Accounting function. Form 9774 may be used in lieu of Form 3244, Payment Posting Voucher. If a payment is received for more than one tax period Form 3244 will be prepared for each additional tax period. Payments will be numbered as follows:

Undeliverable Forms 9774 will be routed to Collections. If a new address is found, the Form 9774 will be returned for re-issuance. Collections will prepare Form 2363, Master File Entity Change, as the source document for NMF to update the taxpayer's address.

Figure 3.17.46-17

Form 9774 NMF Annual Reminder NoticeNMF Form 9774 is issued annually to remind taxpayers of a balance due on a tax module that is in Currently Non-Collectible (CNC) Status 53, in the Collection Queue Status 24, and Installment Agreement Status 60 for 365-days or more. The notice consists of the following:Notice DateSSN/EINTaxpayer NameStreet AddressCity, State and Zip CodeREMINDER - YOU STILL OWE $(balance due)The body of the notice reads as follows:The purpose of this notice is to remind you of taxes owed. Our records show you haven't paid the full amount you owe for your account, Form (NNNN) for the tax period ended (MM/DD/YYYY). The amount you owe is shown below.The amount you still owe may include penalty and interest. It also should reflect any credit(s) and payment(s) we received for this tax period on you account since the last notice we sent you. If you owe additional tax for the same period a separate notice will be issued for the tax liability. The amount due may include penalty and interest. If you have any questions concerning the amount due or penalty and interest computation, please call us at 1-833-972-8965.See enclosed Publication 594, The IRS Collection Process, and Notice 1219B, Notice of Potential Third-Party Contact for additional information. The bottom portion of the notice is a payment stub and reads as follows: Please mail this part with your payment, payable to the United States TreasuryTo ensure proper crediting, write the following on your check: (Form/MFT/Tax Per/TIN) Reply to Internal Revenue ServiceThe bottom portion also includes the Notice Date, DLN, Amount Due, and Taxpayer's name and address.

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The ANMF Headquarters Analyst will issue a SERP Alert when relief has been granted to a geographic area because of a disaster which will include a link to the zip codes of the affected areas. The procedures in this section shall be followed for issuing notices in the affected areas during the disaster period prescribed in the SERP Alert and after the disaster period ends.

A Disaster Notice Spreadsheet will be maintained for each separate disaster, and will include account information for notices generated in the affected areas where these procedures have been followed. The spreadsheet will be sent to the ANMF Headquarters Analyst weekly.

The following actions need to be taken on any accounts that generate a 1st Notice during the disaster period:

The following actions need to be taken on any account that generate a 4th Notice or CNC Notice during the disaster period:

When the disaster relief period ends the following actions need to be taken on all accounts with a remaining balance due where a 1st Notice was issued and a TC 470 was input:

When the disaster relief period ends the following actions need to be taken on all accounts with a remaining balance due where the 4th Notice was held:

When the disaster relief period ends the following actions need to be taken on all accounts with a remaining balance due where the CNC Notice was held:

When held notices are reissued the ANMF Headquarters Analyst will indicate whether there is any relief from Penalty and Interest.

The Annual Notice Flag List will identify tax modules in status 24 Collection Queue, status 53 Currently Non-Collectible and status 60 Installment Status, that meet the criteria for issuance of the Annual Reminder Notice Form 9774, which contain an exception code for which a manual computation of interest and/or penalty accruals is necessary. Print the list each Monday. The list contains:

The Manual Interest and Penalty Update screen will be accessed by the DBA or other designated technicians to update the interest and penalty computations which will be generated on the notice.

Select the Manual Interest and Penalty Update screen. The following input fields will appear:

Input data to fields and enter. This will update accruals to the ANMF database.

Reformat and Re-print notice selecting appropriate options from the NMF DBA Weekly Run/Print Menu. If the notice is not generated within the same week, it will have to be generated using the Alternative Notice Generation system.

After issuance of the notice, Exception Code "M" must be replaced so that it will appear on future listings.

The Notice Yield and Issuance Report will capture the dollars collected resulting from the generated Annual Reminder Notice Form 9774 and identify the number of notices issued. The data will be cumulative.

All Forms 6335 that are undeliverable will be destroyed by Collection.

If Form 4840 (4th notice, sent certified mail to the taxpayer) is returned as undeliverable, but a new address is found, then:

Effective July 1, 2000, the IRS Restructuring and Reform Act (RRA 98) mandates that IRS provide the taxpayer and/or taxpayer's representative with an annual installment statement. Annual Installment Agreement Statement, Form 12379, will be sent to taxpayers who have an account that contains an unreversed Transaction Code (TC) 971 with Action Code (AC) 63. The ANMF system will not update the status on an account where a TC 480 or a TC 520 was input prior to reversing a TC 971 AC 63 Status Code 60.

On the first Monday in July of each year the DBA will print an annual Installment Agreement (IA) Flag List with the related installment statements from the NMF database.

IRC 6651(h) provides for a decrease in the FTP penalty rate for qualifying taxpayer for any month (after 12/31/1999) during which an installment agreement is in effect. See IRM 20.1.2.3.8.1.2, 1/4 Percent Penalty Rate-IRC 6651(h), for additional information. The taxpayer must meet the following criteria:

All annual IA statements must be reviewed for accuracy of the penalty and related interest computed by the ANMF system.

The alternative notice system will be used for accounts that have multiple assessments with the same TXPD/dummy TXPD for the same taxpayer. Combine all annual IA statements that have the same taxpayer identification number (TIN) and TXPD/dummy TXPD(s). P and I computations should be verified for accuracy prior to combining annual IA statements.

The as of dates for the account summary section of the statement are:

If an assessment is a Jeopardy, Termination, Trust Fund Recovery penalty, or transferee/transferor or any other request for immediate assessments, establish the account using Notice Type "T" for Trust Fund Recovery Penalty or "Z" for all others.

Systemic review of all accounts in notice status for which six (6) weeks have elapsed since the issuance of the fourth notice will systemically move to TDA status 22.

Weekly, the ANMF System reviews accounts in suspense status 89 to determine if further action is required. Claims/Adjustment Pending account transcripts generate 90-days after a TC 470 has posted. A TC 472 will systemically post after 180-days has elapsed.

Unless excluded by immediate issuance, the account must be entered on IDRS prior to release of the TDA. Enter the TDA on IDRS expeditiously. Weekly, the ANMF System will generate TDA transcripts (Accounts Maintenance Transcripts) which are source documents for input to IDRS.

Route the Form 3210 and TDAs to CSCO for document association and review.

The DBA can accelerate the notice stream to transfer the account from notice to delinquent status. See IRM 3.17.46.7.9(2) c.

Some accounts under control of the Criminal Investigation Division (TC 914 posted to a Master File) will be transferred via Form 514-B by memorandum to NMF.

An NMF ADDRESS Transcript will generate whenever an IMF or BMF address is updated and there is an NMF TC 130 present on Master File. These transcripts will be pulled from Control D by the NMF function for updating the taxpayer's NMF account. It is important that these transcripts be worked expeditiously when received to ensure accuracy of the NMF database.

In lieu of preparing Form 2363, the transcript may be used as the source document for posting the address change.

An alternative method of producing all NMF notices should be adopted locally. We recommend a local personal computer (PC) application. Generally, system downtime would only affect the "daily" assessments, but, depending on the length of the system downtime, weekly assessments may also be affected.

If the system is down, the bill/notice can then be generated through the PC application and the assessments can be loaded on the ANMF system via the Load Old Accts/Transfer-in screen when the system becomes operational again.

The PC based application should set up with a generic First Notice as follows:

The notices should be printed at pitch 15 or 16 depending on the printer's capabilities.

The only fill in information should be as follows:

To reduce erroneous refunds from the Master File (MF) when an outstanding balance is present on the NMF, a transaction code 130 will be automatically generated to the Master File at the time that the Individual (SSNs) NMF account is established. A tape will systemically match the NMF account against the IMF primary social security number posted on Master File. If no match is found, an unpostable will generate. The CCA/42/43, Unpostable/Overage Listing, will be utilized to identify and resolve the TC 130 unpostables.

The NMF function will conduct research of the NMF account and the Master File account utilizing the ANMF screen and IDRS command codes to search for an accurate SSN to post the transaction code 130. A transaction code 000 may be required to establish an entity for the Master File secondary spouse. Exceptions:

A systemically generated freeze will not occur on NMF accounts that are established with an Employer Identification Number (EIN), and EPMF or EOMF accounts, or on the Master File account of a secondary taxpayer.

If the Master File Entity freeze (V-) is needed on a Master File TIN or other than the original primary TIN, then follow manual processing procedures when a first notice is generated from the ANMF system.

Using both the Daily and Weekly NMF Accounts Flagged for Notices/TDAs list as the source document, prepare Form 3177 for each NMF account that has a first notice issued.

Quarterly using the daily and weekly NMF Accounts Flagged for Notices/TDAs listings a mandatory review must be conducted to ensure that both the systemic and manually prepared TC 130s (V- freezes) are posting on Master File.

Once a month, the ANMF system generates an NMF Accounts Purged to Closed listing when an NMF account becomes a zero-balance account. Use this listing monthly for researching both the NMF database for other outstanding accounts and the Master File to verify whether or not the Entity Freeze is still in effect. Accounts will be flagged if no other open NMF account exists. They will also be flagged if the account has a zero-balance due to a TC 400.

The campus may choose to pre-search the system to confirm the existence of an NMF account to eliminate unpostable conditions. However, this is not always feasible due to the workload. Therefore, the following procedures apply even if pre-search is not accomplished and an NMF unpostable condition exists.

Prepare a file folder for each document and continue research for resolution. Annotate on 4430 Account History Sheet all actions taken. Listed below are guidelines:

Upon identifying the application for the payment, perform the following:

If no account or Closed ULC is located after 45-days, request that RACS complete the following actions:

NMF will input the subsequent transaction(s) to the NMF account through the Enter Sub Pays option from the Processing menu. See IRM 3.17.46.13.13, Subsequent Transactions.

If the subsequent transaction appears on the Unpostable Transaction List, see IRM 3.17.46.13.11, Unpostable Corrections, for resolution.

If the account is in 22 status (TDA) or the TDA account is in status 89, then enter the subsequent transaction(s) on IDRS using the generated "IDRS Update List" (The NMF Subsequent Transactions to Accounts in TDA Status list).

After posting subsequent transactions to the NMF account, the ANMF System will generate various Recaps. Recaps will not be systemically generated for subsequent transactions when no journal action is required.

Each month, the ANMF system generates the "NMF Postings for the Month of: MM/DD/YYYY" list which also contains subsequent transactions (with the related posting indicator) that have posted to the database.

Documents for payments received in the campus will be sorted at the time of deposit by tax class.

When the Accounting package is received, RACS will enter the Form 813 information on the ANMF System using the Form 813 Block Control screen and forward Form 813 with the related documents to NMF for input to the NMF Account through the Enter Sub Pays option from the Processing menu.

On delinquent status accounts, use the "IDRS Update List" for control and input to IDRS after posting transaction documents to the NMF account.

If the payment was intended for Master File but is numbered as an NMF item, process as instructed in subsection on Service Center Control File. See IRM 3.17.46.3.7

If the payment is identified as applicable to an account in another campus, do not remove the item from the Form 813 total. This will be journalized as a credit in transit to other campuses.

NMF receives various documents which affect the status, entity, or balance of an NMF account. These include abatements of tax, penalty or interest, debit or credit transfers, account transfers, dishonored checks, statute extensions, etc. This is not an all-inclusive list.

All documents coming to NMF for posting MUST have proper supporting documentation attached in accordance with IRM 3.17.46.8.

RACS may receive Form 5147, IDRS Transaction Record, or other various documents.

If the document is not numbered, RACS will ensure that a DLN is assigned to the document compatible with the related transaction codes. All transactions input to the database must have a valid DLN.

RACS will prepare Form 813, input the information using the Form 813 Block Control screen and forward the Form 813 and the related documents to NMF. Form 813 prepared for entity changes or accounts transferred-in are not input through the Form 813 Block Control screen.

NMF will input the transaction documents as follows:

NMF advance payments can be received when the Examination Division has determined an NMF deficiency and secured the payment prior to the assessment.

Chapter 13 bankruptcy advance payments (Form 3244) on Trust Fund Recovery Penalties for individual taxpayers should be processed as Master File advance payments on the IMF Penalty File using MFT 55.

Initial processing of NMF Advance Payments is external to the ANMF system and pre-journalized to Account 4610, Unapplied Advance Payments. This account should only contain payment documents that are prepared by Examination except for the IMF $100 billion taxpayers (See IRM 3.17.46.6.4). All other payments must be journaled immediately to Account 4430.

Form 3244A, Payment Posting Voucher—Examination (part 1) will be received by RACS in the Accounting Package and will be used as the payment source document as required.

RACS will journalize the payments as instructed in IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, and forward the Form 3244A to the person who maintains the 4610 Account.

The advance payment file is the subsidiary for general ledger Account 4610, Unapplied Advance Payments.

The source documents will be maintained until the applicable assessment is received or the originator instructs that the advance payment be refunded.

Each quarter, March, June, September, and December contact the preparer of any Form 3244A in 4610 Account aged for six-months or more.

Upon identifying the application for the payment, perform the following:

Source documents supporting input to the ANMF System will be forwarded to Returns Files after the monthly balancing is completed.

If no assessment is required, the initiator will give instructions on the disposition of the credit. The advanced payment will not be input to the ANMF System, but will be processed external to NMF.

The closed advance payment file supports the closures for the 4610 Account.

When a manual refund is required on dual status returns, non-resident alien returns and foreign corporation, withholding tax is computed on the allowable interest using 30 percent, or the treaty rate, as applicable. This amount of withholding tax is subtracted from the net amount of the refund in accordance with instructions in IRM 3.17.79, Accounting Refund Transactions.

To provide an audit trail for the amount of withholding tax withheld until the withholding agent's return is filed, the money will be transferred to the 4610 Account, Unapplied Advance Payments. The withholding agent is the Commissioner.

A Form 3809, Miscellaneous Adjustment Voucher, will be prepared to debit the 6520 Account, and credit the NMF account for the amount of interest withheld.

A Form 3809, Miscellaneous Adjustment Voucher, will be prepared to debit the NMF account, from which the refund was issued, and credit the 4610 Account. A Form 5205, Information About Your Income Tax Refund, (part 2) will be attached to the back of Form 3809. In accordance with IRM 3.17.79.3.13, Non-Resident Alien and Dual Status Refunds, these transactions will be monitored monthly until all transactions have posted.

A Form 3809 will be prepared to debit 4610 Account, and credit the withholding agent’s account, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, using a TC 700 for the lump sum of all interest withheld each month.