The credit and account transfer procedures within the IRM are a process used to manually transfer erroneously posted credits or accounts that are posted to master file.

The assessment statute expiration date (ASED) must be imminent (no more than ten months from the request date) or expired before requesting a Master File (MF) to MF account transfer.

The Taxpayer Services Commissioner has overall responsibility for the policy related to this IRM, which is published on a yearly basis.

The account transfer team receives requests for account adjustments, parent/subsidiary credit applications, reactivation of retention register accounts, and other transfers. Many account adjustments are made directly by other campus functions on IDRS.

The team Manager has the responsibility of ensuring employees receive the proper training to effectively process all requests that are received.

Employees are responsible for ensuring the requests are reviewed for accuracy/completeness and for processing the requests utilizing the guidelines as described throughout the IRM.

This IRM is updated and published annually after review and concurrence by impacted stakeholders according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMDs).

Functional areas are responsible for reviewing the information in this IRM annually to ensure accuracy and consistency, and to promote effective program administration.

The program effectiveness includes conducting reviews and analysis to detect and identify material or significant deficiencies that could adversely impact IRS audits and/or financial statements.

These reviews are necessary to ensure Submission Processing is conducting business as prescribed in the governing IRM's, and are designed to identify potential internal control deficiencies that may impair the integrity of the general ledger accounts and/or financial reporting.

A vulnerability assessment identifies, quantifies, and prioritizes the vulnerabilities of government programs and assets including systems/technology, property, funds, and employees.

Vulnerability assessments may be conducted on any business process to assess the risks of business failure and/or weakness caused by internal or external factors.

Program Reviews are mission critical to the health of accounting and deposit programs to ensure integrity of the general ledger accounts and accuracy of the financial statements.

It is essential that each function conducts its operations with an emphasis on mitigating risks, identifying best practices, and adhering to IRM requirements.

An objective assessment of program compliance, including all applicable procedures and guidelines, is necessary to ensure that adequate internal controls are in place.

A program review ensures actions are in accordance with IRM procedures. SP, HQ, Accounting and Deposit Section, conducts program reviews to verify compliance with IRM requirements, address TIGTA/GAO findings, identify risks to internal controls, address error trends, and evaluate training needs, as needed.

In addition, the reviews ensure IRM procedures are applicable, adequate, and adhere to Department of the Treasury and/or IRS guidelines.

The following table lists the commonly used acronyms throughout this IRM

Throughout this subsection, references are made to other IRMs in relation to instructions necessary to properly perform tasks in this IRM 3.17.21, Accounting and Data Control, Credit and Account Transfers. Management shall be responsible for having at least one copy of each of the referenced IRMs in the work area’s library. However, at management’s discretion, it may be deemed worth-while for each employee to possess a copy of a particular manual.

The following Internal Revenue Manuals are frequently used in conjunction with this IRM and must be referred to when additional clarification is needed.

To transfer a Master File account, a TC 971 with an AC 045 (IMF) or AC 745 (BMF) is input on IDRS, creating a TC 400 for the module balance.

The TC 400 will generate a Computer Paragraph CP 96 or CP 296, Account Transfer Out Transcript Notice, with the amount of the account balance. These are input from the generated campus recap into the Non-Master File (NMF) suspense account, and set up on the NMF Service Center Control File (SCCF) with a dummy Form 813, Document Register.

Entries are made from individual Form 813, one at a time, or from Revenue Accounting Control System (RACS) Input Reconciliation Sheet. If individual Form 813 is used for input, the document locator number (DLN) will be entered in "Source DOC ID" for audit trail. Transcribe or stamp journal identification number on documents as required.

Transfers of credits can be made from Master File account to a general ledger account, or vice versa. If made on Form 3809, Miscellaneous Adjustment Voucher the transfer can be made without having to number the debit or credit going to general ledger account with a separate DLN. These transfers will be entered using either individual Form 813 and documents for general ledger accounts or from the RACS Input Reconciliation Sheet (Form 8166). If individual Form 813 are used for input, the DLN will be entered. If Form 8166 is used for input, use RS number. Transcribe or stamp journal identification number on documents for audit trail purposes as necessary.

Tax module information may be researched using various Integrated Data Retrieval System (IDRS) and CFOL Command Codes. These include Command Codes TXMOD, MFTRA and ACTRA, as well as the Command Codes INOLE, IMFOL, BMFOL, PMFOL, RTVUE, and BRTVU. See IRM 21.2, Systems and Research Programs.

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

When using IDRS, only access those tax modules required to accomplish 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 IRS.

All employees must be aware of IDRS notice issuance criteria. IDRS Command Code STAUP may be input to interrupt routine notice issuance if transfer action cannot be accomplished before the next notice is issued.

The number of cycles delayed must be for a sufficient period to ensure that balance due notices will not be issued prematurely. It may be necessary to extend the previously input STAUP if the transfer procedure is lengthy.

Credit and account transfers documents with their supporting documentation are to be retained in the campus for five years after the processing year. Local arrangements may be worked out between the Credit and Account Transfers Team and Files. Refer to Document 12990, Records and Information Management Records Control Schedules, Schedule 29 – Tax Administration - Taxpayer Services, Item 162, (Job No. NC1-58-82-9) to ensure records, in hard copy and electronic format, are appropriately managed, retained, and archived in accordance with the National Archives and Records Administration approved records retention and disposition authority. Also refer to IRM 1.15.1, Records and Information Management series for compliance with records and files management lifecycle (hardcopy and electronic), including creation, maintenance, retrieval, preservation, and disposition of all records to avoid inadvertent/unlawful destruction of records.

In certain situations, an account will be identified where there is a credit posted on Master File (MF) and it needs to be transferred to Non-Master File (NMF), Foreign Bank Account Records (FBAR), or the EO User Fee account. There is no need for a Form 2158 to be prepared when transferring credits and these types of cases.

The campus that identifies this type of case will need to prepare a Form 2424, Account Adjustment Voucher, to debit the MF and credit either NMF, FBAR account, or the User Fee account. If transferring the account to NMF, a current NMF transcript must be attached to the Form 2424.

The Form 2424 and any supporting documentation must be sent to the receiving campus under cover of a Form 3210, Document Transmittal, or another transmittal that is used in lieu of the Form 3210.

The receiving team will take the following actions upon receipt:

The lettered paragraphs below correspond to the letters on the Form 2158, Credit Transfer Voucher (see Figure 3.17.21-1 ).

Prepare a Form 813 in duplicate. If not required by the RACS Team, Form 813 may be omitted per local procedure.

Route Form 2158 to the RACS Team. Journal instructions are included in IRM 3.17.64.9, Credit Transfers.

Form 2158 has a maximum processing cycle of six workdays from the date received in Accounting, per IRM 3.30.123, Processing Timeliness, Cycles, Criteria and Critical Dates.

Figure 3.17.21-1

Form 2158 Credit Transfer VoucherShown is the Form 2158 with corresponding IRM 3.17.21.3.2 lettered paragraphs (shown above). The Journal: boxes are for RRACS Journals number to be applied to the Form 2158 document, refer to IRM 3.17.64.9, Accounting Control General Ledger Policies and Procedures, Credit Transfers for more information.

Please click here for the text description of the image.

Losing Campus’ technicians will prepare Form 2158 and combine it with the supporting documentation into one pdf document file to be processed by the receiving campus.

The Form 2158 and supporting documentation must be combined into one pdf document file. You will send the electronic document file to the receiving campus by uploading the document file to the Form 2158 SharePoint, Incoming New Form 2158 campus folder when the transfer does not involve a transfer to Non-Master File (NMF). For NMF transfers see IRM 3.17.21.3.4, Losing Campus - Non-Master File (NMF) Credit Transfers. If the supporting documentation includes an original return the transfer and documentation will be sent express mail to the receiving campus.

Only one Form 2158 with supporting documentation combined pdf file will be uploaded to the receiving campus designated folder on the Form 2158 SharePoint located at: 2158 Processing (sharepoint.com)

When you are ready to upload your document file (See below).

After you upload the document file you will set up the Alert Me for your file to receive your acknowledgement from the receiving campus (See below).

When the "Alert Me When Items Change" menu comes up you can then set up the notification method you prefer (See below).

The Form 2158 must be signed even when sending by mail or uploading to the Form 2158 SharePoint.

The receiving campus will send Form 2158 back to the losing campus as confirmation of receipt by mail (NMF) when the transfer was received by mail (NMF) or upload to the Form 2158 SharePoint Completed Form 2158 Confirmation folder for the losing campus.

Losing Campus' technicians will prepare Form 2158 to express mail to Kansas City Submission Processing appropriately for addition on their local Automated Non-Master File System.

Receive request for NMF credit transfers out which may include the following documentation:

Prepare Form 2158, Credit Transfer Voucher. Follow instructions in IRM 3.17.21.2, Credit and Account Transfers. Attach current NMF transcript(s) and Form 3244 or Return with the NMF DLN.

Forward Form 2158 package to the RACS area for journalizing to the "In-Transit" account.

When received back from RACS, attach Form 2158 to Form 3244 or return, along with the transcript, and express mail signed Form 2158 copy and backup to KCSPC.

Keep a copy in the file and wait for a copy as acknowledgment from KCSPC.

When the copy is received from KCSPC, send it to RACS to remove from the "In-Transit" account.

After journalizing, receive a journaled copy from RACS, associate with the file, the unjournaled copy may be destroyed.

When the transfer requests are not acknowledged within fourteen days from mailing to KCSPC contact must be made, via email at *TS OSPC ACO Transfer Team , to request the acknowledgement. Additional follow-up must be done in five days if the acknowledgement copy still hasn't been received. This will be accomplished through telephone contact with the manager of the transfer team. If the second follow-up contact does not result in the Form 2158 acknowledgement, notify Headquarters (HQ) for additional support in obtaining the acknowledgment.

Receive Form 2158, copy and supporting documentation from other campuses in the credit and account transfers area. It usually contains an NMF credit transfer, but it may be a debit or abatement, which would be indicated on the form.

When the Form 2158 is received with the original return, the form is to be separated from the Form 2158.

Make a copy of the return and send the original return to the Batching operation so that it may be processed.

The credit that came in with the return was deposited by the original Receipt and Control operation. The credit will be posted to ANMF using the Form 2158.

Research using the Form 2158 to locate the appropriate NMF account.

If the account is not located on NMF, or there is a discrepancy and it cannot be processed by the receiving campus, confirm and re-transfer on Form 2158.

If the appropriate account is found and is processable, sort Form 2158 by area office or campus.

Block and number each group of triplicate forms.

Prepare Form 813 (two Part) for each Block.

Route Parts one and two of Form 813 and a copy of the Form 2158 to the RACS Function for journalization.

RACS will keep Part one of Form 813 for backup and forward a copy of the Form 2158 to the Credit and Account Transfers Team. RACS will also forward Part two of Form 813 and a copy the Form 2158 to NMF for posting.

After verification of journalization the manager of the Credit and Account Team will sign Form 2158.

Notate the journal number in the logbook.

File a copy of the Form 2158 as backup.

Express mail a copy of the Form 2158 back to the losing campus as confirmation of receipt.

Refer also to IRM 2.4.17, IDRS Operations Handbook Input of Credit Transfers, if IDRS terminal input is to be used to affect the transfers. IDRS must be used whenever possible since IDRS transfers will retain cross-reference TIN, MFT, and tax period for microfilm research. In the event the taxpayer's module is not available for IDRS processing, proceed with the following instructions for preparation of the necessary documents.

To prevent BMF and IMF Unpostables (Code 305 for BMF and 198 for IMF) use the bypass indicator if no freeze is necessary. To freeze the account, a TC 570 must be input as a secondary transaction code using the credit freeze code to a TC 650, TC 660, TC 670, and TC 760 if the credit portion of the transfer is directed to a tax module in Master File Status 06 (BMF only), 10 or 12 and a secondary code is valid. If a refund is desired, input TC 571 or TC 572 in a subsequent cycle to release the freeze.

A TC 762, Reversal of Substantiated Credit, must NEVER be input to the IMF to adjust a TC 766 amount when the DLN of the TC 766 contains an "08" Document Code (Rebate amount relative to tax years beginning in 1974). A TC 762 must NEVER be input to the IMF to adjust a TC 760 manually input relative to the rebate program unless it was originally in error, or the liability has been adjusted.

All TC 760s manually input relative to the rebate program will reflect a Document Code of "51," account transfer, but all TC 760s with a Document Code of "51" will not necessarily relate to the rebate program. Research of the transfer-in document file may be necessary to make this determination.

Care must be taken in transferring backup withholding credits which may be identified by Tax Class 5, Doc Code 97. Backup withholding credits will be posted to the entity which will file the Form 1096, Annual Summary and Transmittal of US Information Returns, and the 1099 series information returns.

If any Forms 2424 are prepared by the employees in the Accounting operation, they must be reviewed by the manager, or their designee, before being sent through for processing.

The manager, or their designee, must initial the Form 2424, and the history sheet if applicable, to show that the case was reviewed.

This subsection is meant to cover a wide range of debit-credit adjustments. Sort debit-credit adjustments as follows:

Form 2424, Account Adjustment Voucher, will be used for transfers from one account to another. It may be used between Master File and Non-Master File. Prepare in two parts (credit and debit) for any of the above situations.

Form 3809, Miscellaneous Adjustment Voucher, is used for non-revenue receipt adjustments.

In early 1989, the Excess Collection File (XSF) was automated. Form 8758, XSF Addition, is used exclusively for transfers into the 6800 Account, Excess Collections. The Form 8758 are processed in the Excess Collections Unit, and they are the only personnel with capabilities to apply money from the file. All entries known to the requestor of Form 8758 must be completed, Excess Collection money is Non-Revenue Receipts that are more than one year old. An exception is: true statue credits which net credit in Revenue Receipts, see IRM 3.17.10.3.2.2.1, Receiving Statute Credits.

General explanation of Form 2424 follows.

The following two types of accounts will be given priority processing by Accounting to avoid undue burden and/or hardship to the taxpayer:

Prepare Form 2424 as follows. Form 2424 is received and processed via various means including SharePoint, Fax, and EFax. Any incomplete Form 2424 received in Accounting will be rejected back to the requestor.

Scan the document to ensure accuracy of items such as tax period, tax class, transaction code, and transaction date. Circle in brown all unshaded NMF X-Reference boxes (debit or credit) so they will not be transcribed by ISRP.

Route Form 2424 to the RACS Team for input.

Send the NMF documents for posting to the NMF Team. Route the Form 813 for removal of the document from the SCCF.

Send the Master File documents to Batching Team.

Input of Command Code ADD24 on IDRS will display DRT24 Format.

Input a TC 570 on the module where the credit is being transferred so that a refund will not be generated, or the credit offset to a module with an outstanding balance. The freeze condition will stay on the account until a TC 571 is input or an assessment is input which brings the module to zero balance.

A general explanation for Form 3809 follows.

Preparation of Form 3809, Miscellaneous Adjustment Voucher. The Form 3809 generally requires the same elements of data as Form 2424. See IRM 3.17.21.4, Credit Transfers Using Form 2424 and Form 3809.

Input of Command Code ADD48 on IDRS will display DRT48 Format.

Forms 2424 and Forms 3809 must be transcribed through ISRP in separate blocks. All vouchers must be sub-sorted as follows:

Prepare Form 514-B, Credit Transfer Voucher, as a transmittal sheet for the NMF transcript.

Send the Form 514-B and transcript to the RACS Team. They will be returned after journalization.

Sort Form 514-B by campus.

Mail Parts one through four of the Form 514-B, two copies of the transcript and any other attachments to the receiving Campus.

On all cases, prepare Form 3177, Notice of Action, for entry on Master File, with TC 131 and route to CSCO on Form 3210.

Part two of Form 514-B is returned from the receiving office. Pull part six of the Form 514-B out of the file and compare to the part two copy to ensure it is your transfer.

Prepare follow-up letter for transfers not acknowledged in thirty days from the transferee office.

Send the part two confirmed copy of Form 514-B to the RACS Team. It will be returned after journalization is completed.

Receive Form 12810, Account Transfer Request Checklist, and review the form to ensure it is the most recent revision of the form and that it is completed correctly. The Form 12810 requires a signature of manager or lead of the originator. All Form 12810 receipts must be processed within a timeframe of six working days. Any forms that need to be rejected will be sent back to the originator using an electronic format, either email or EFax. This will prevent an unnecessary delay.

The request generally comes from the Adjustment, Collection, or Statute Team, and will indicate complete or partial account transfer. If a partial transfer is requested, a listing of the individual TCs to be transferred must be present. IDRS prints (TXMOD, IMFOL, BMFOL) may be attached to the Form 12810 with the applicable TCs being transferred highlighted. The Form 12810 must be date stamped when received in Accounting, you must edit the pdf electronic Form 12810 to add the Accounting receive date.

Verify that the module is in debit or zero balance. If not, reject to the requestor for resolution.

Verify that the TIN and the earliest name line year for the TO Account, where the assessment is to be moved to, is on the Master File. If not, reject to the requestor for input of TC 000 (Entity) or TC 013 (Year).

For BMF accounts, penalty and interest accruals must first be brought up to date. The originator must either input a TC 290 for zero, with a priority code 5, or a TC 270 and TC 340 for the accrued amount if the account is restricted (G- or -I freeze). This action must be posted to the account before requesting an account transfer. Any BMF requests received that haven't had one of these actions taken must be rejected back to the originator for resolution.

For BMF accounts a TC 290 PC 5 is not needed when any of following conditions are present:

For IMF accounts, use CC REQ77 to input TC 971, with AC 045; For BMF accounts, use CC REQ77 to input a TC 971 with AC 745. This will automatically generate a TC 400 and the CP 96/296 Notice.

The employee assigned to complete the transfer needs to open a control base, using category IRRQ, when it is determined that the transfer request will be processed. Update both modules using CC ACTON as action is taken.

Monitor for CP 96 or CP 296 Notice, which will generate upon posting of TC 400. The CP notice must be date stamped when received.

When the CP notice is received related to an RPP-RBA case, the literals RPP-RBA must be put on the top of the CP notice prior to sending it to KCSC NMF team.

Prepare Form(s) 3413, Transcription List, using the transactions from the CP as indicated by requestor on Form 12810 with valid transactions codes shown in Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

If the originator has requested to have the TC 402 input, the Form 3413, Transcription List (Account Transfer-In), is to be prepared and submitted at the same time as the Form 3413 for the TC 370.

Number Form 3413 and prepare Form 813, Document Register, in accordance with local procedures.

Prepare Form 4028, Service Center Control File Adjustment Record, if applicable, to remove count and amount from Controlling DLN on NMF SCCF.

Forward Form 813, Form 3413, and Form 4028 to RACS for journalization and processing to ISRP.

Suspend the open case and monitor for posting.

Upon completion of all posting, update and close control bases.

MFT 31 mirror assessment processing is no longer processed using the credit and account transfer procedures - It has been automated to the Individual Master File (IMF). For more information contact the appropriate area Subject Matter Expert (Bankruptcy, Offer in Compromise (OIC), Exam, Appeals, etc.).

If a true account transfer is requested that involves a MFT 31 account, this can be completed. Guidelines and procedures listed in IRM 3.17.21.5, Requests for Transfers to Other Campuses and IRM 3.17.21.5.1, Preparation of Form 514-B would still need to be followed.

When trying to only move the debit side the TC 767 and TC 765 blocking series needs to be 940-949 to bypass the unpostable check.

There are transaction codes with reference codes that will not post to MFT 31 account please refer to IRM 3.12.21.4.2.19(3) chart, Error Resolution - Credit and Account Transfers.

A Form 12810, Account Transfer Request Checklist, is generally received from the Adjustment, Collection or Statute teams. The form must indicate complete or partial account transfer, listing individual transaction codes (TCs) to be transferred.

Verify that the module is in debit or zero balance. If not, reject to the requestor for resolution.

Before requesting a complete account transfer from MF to NMF via TC 400, the penalty and interest accruals must be posted to the module prior to the transfer. If more than one assessment is still owing (TC 150, 290, 300) the accruals must be split to indicate how much belongs to each account balance; if not, reject back to the requestor. The requestor must input and monitor until posted.

Since the Automated Non-Master File (ANMF) system allows for only one 23C date per account, it is extremely important to ensure that the correct 23C date is identified for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

For Bankruptcy Transfers to NMF: Verify that the CSED is included on the request. If the account contains more than one assessment, a CSED must be included for each 23C date. If possible, the account will be sent to MFT 31 instead of ANMF.

ANMF cannot be programmed to correctly compute penalty and interest in all instances. Some of the conditions are:

For IMF Accounts, use CC REQ77 to input TC 971, with AC 045; for BMF accounts, use CC REQ77 to input TC 971 with AC 745. This will automatically generate a TC 400 and the CP 96/296 Notice.

Update the Master File module using CC ACTON as action is taken.

Edit CP 96 or CP 296 using the information on the Account Transfer-Out Transcript notice and Form 12810. Use appropriate status codes, conversion and reversal transaction codes to edit the CP notice. (Refer to Exhibit 3.17.21-4 , Exhibit 3.17.21-5 , Exhibit 3.17.21-6 and Exhibit 3.17.21-7)

Number the CP notice and prepare Form 813, Document Register.

Forward CP notice and Form 813 to RACS for journalization and processing.

Suspend the open case and monitor for posting to ANMF.

Upon completion of all posting, request a NMF transcript, update and close your control base.

Master File is not able to accept an unlimited number of transactions on any given account module. When a master file account contains too many lines and the module has moved into overflow status, a transaction code (TC) 400 will systemically post to transfer the account module to Automated Non-Master File (ANMF). After the TC 400 posts to the account, a Computer Paragraph CP 96 (IMF) or CP 296 (BMF) is generated automatically without the input of a TC 971 AC 045. This transcript is identified by a block number 999 and the word Overflow under the transcript title.

An Overflow TC 400 systemically generates for a BMF Account with a zero, debit, or credit balance.

An Overflow TC 400 systemically generates for an IMF Account with a zero or debit balance. If an IMF Account is in credit balance and has reached its line limitation, a requestor can prepare a Form 3809 to move the total module credit amount to the NMF 4430 Account so that the IMF Account will be at zero balance and generate a TC 400. (See Figure 3.17.21-2

Figure 3.17.21-2

Form 3809Shown is Part One - Credit Copy and Part Two - Debit Copy of Form 3809 showing a Debit to the Taxpayer and a Credit to the NMF 4430 Account.

Please click here for the text description of the image.

The Transfer team at the controlling campus will receive the CP 96 or CP 296, and access IDRS command code TXMOD and print all pages for the account. The originating campus will complete the procedures that are outlined in (5) through (9).

Since the Automated Non-Master File (ANMF) system allows for only one 23C date per account, it is extremely important to ensure that the correct 23C date is identified for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

The following transaction codes are assessment transactions that will each have their own CSED.

If the account contains more than one assessment and there is an unreversed TC 534, the account will need to be split to establish separate NMF accounts. This will be completed by the originating/losing campus.

If the account contains more than one unsatisfied assessment, the losing campus will prepare a separate CP notice for each assessment taking care that the correct 23C date for each separate assessment is used.

The TC 806, which is changed to a TC 800, does not have a date associated with it on the CP notice. You will need to add the date. The due date of the return will be written next to the TC 800 as the transaction date.

The following instructions will be followed by Kansas City once the overflows are received.

When an overflow account is received and it contains a civil Penalty Reference Number (PRN) 631, the following steps must be taken.

On the CP notice highlight the name, address, form number, and TIN. Place three lines in the right margin, using the highlighter, for information to be added later.

Review the CP notice to identify all zero (.00) amount transaction codes and line through the transactions, except:

Not all master file transaction codes can post to ANMF. Using the chart in IRM 3.17.46.6.16.1 (4), Master File Overflow Transfer-In convert the remaining transaction codes on the CP notice.

When an overflow occurs on an account that contains a Penalty Reference Number (PRN) 631, the PRN needs to be changed to PRN 630. You will also need to change the MFT to 28 and use abstract number 189.

Edit the entity data as follows.

In the right margin, where you've placed the three highlighter lines, write the following information:

If notices have been issued to the taxpayer, these notice dates must be loaded on ANMF. Write the status and date on the CP notice under the DLN of the 23C. See the chart in Exhibit 3.17.21-4 for further instructions.

Assign a NMF DLN to Form 514-B and the CP notice.

Verify the CSED has not expired. IDRS research needs to be completed to verify the CSED, prepare a Form 3177, If necessary, to have the correct CSED posted to ANMF.

Prepare Form 813 and forward Part 1 to the RACS Team.

Route CP notice to the RACS Team and then the NMF Team.

Review the account for payments with a Designated Payment Code of 05. These are NOT installment agreements. They are Continuous Wage Levy (CWL), and the account will NOT be put in ST60 on NMF. Use previous status from the account and do not process a Form 3177.

Special Instruction regarding BMF: An overflow TC 400 BMF Account can post with a zero, debit, or credit balance. If the BMF tax module on an overflow transfer account has a credit balance it will post, and the following special procedures are to be used. (These procedures were developed because the Service Center Control File (SCCF) does not accept a Doc Code 51 with a credit balance).

The Account Transfer-In program is designed to transfer into the Master File a list of all transaction codes, dates, and amounts on a single record.

Accounts are transferred into the Master File on Form 3413, Transcription List. See the Multimedia Publishing website for the latest revision of Form 3413.

All account transfers-in must contain either a debit or a zero balance. If the account is in credit balance, contact the requestor for resolution. A debit must be added before the transfer can be processed.

Do not enter any individual transactions over $999,999,999.99. The Master File limits each amount field to fewer than 11 positions. (IMF Only)

The following types of cases require re-transfer action:

Do not re-transfer an account if any of the following conditions are present:

The TC 400 will produce a CP 96 (IMF) or CP 296 (BMF), Account Transfer-Out Transcript Notice.

The CP 96 or CP 296 is then used to prepare Form 3413, Transcription List Account Transfer-In, to transfer the account back onto the Master File.

The following types of accounts require re-transfer on Form 3413 with TC 402 for the amount of the TC 400:

For NMF account re-transfers back to the same tax module, TC 402 with the same date and amount as the TC 400 must be entered as the first transaction code (Section 01). Any other transactions which posted to NMF after the TC 400 will be added as secondary transaction codes. Any transaction that posted to Master File before the TC 400 will not be included.

Assign block numbers 850-899 for re-transfers.

When all action is completed and posted correctly, close the case control on IDRS with Command Code ACTON.

File the transfer request and supporting data in the closed alpha file.

Notify the requestor that the action has been completed for account(s) transferred to NMF only.

When the IMF TC 400 account has posted after generating with TC 971, AC 045, make a folder for each block of work to be sent to the Files Section.

Put the CP Notice in the folder, with all background information attached. The TC 400 DLN is the controlling DLN on the Master File.

Write the DLN of the TC 400 block on the folder, i.e., XX-251XXX-888X. The Julian date will always be the same as the Julian date of the TC 971, AC 045.

Attach a Form 3210 to the front of the folders showing the DLNs of all the folders with the words "TC 400 Actions. Shelve Immediately."

Send the folders weekly to the Files Section, Cycle Control Unit.

If requests are made for the originating documents, refer them to the Files Section, and tell them that the TC 400 DLN is the controlling DLN. Returns will be re-filed behind this DLN when returned from the requestor.

The requests for items on microfilm are received on Form 5248, Transfer Request, from different IRS offices within and outside of the campus. There may be local procedures where the request information is stamped on the retention register transcript.

All Form 5248 requests must be processed within twelve workdays.

All requests must have retention register account records attached. If not, return to requestor, explaining that an attachment is needed. The request must have the account on it that is to be transferred.

If the module is present on the accounts register already, return to requestor indicating a transfer is not necessary because the module is already present on the Master File account.

Modules on microfilm retention register may be transferred using Form 3413, Transcription List, (Account Transfer In), or an edited copy of the Retention Register or MFTRAZ transcript. IMF and BMF tax modules are now kept on the Master File substantially longer than they were prior to multi-level processing.

Upon receipt of the Form 5248, Transfer Request, with the Retention Register transcript, examine the transcript to determine what entity transactions are necessary. Initiators must have established the entity on IDRS before preparing Form 5248. Check IDRS to see if the module(s) requested on the Form 5248 are already present on the Master File. If so, annotate the Form 5248 and route the request back to the initiator. "If the account is on IMFOL with an R or BMFOL with an O or an R, it may be reactivated with the use of IMFOL-B or BMFOL-B." Return to requestor.

If a request to re-establish an account involves an account removed after 1972, use IDRS to determine the entity status. When all tax modules have been moved to the Retention Register, the entity will remain on the Master File for 51 months after the last tax module was removed.

Check the TIN on each request on IDRS using Command Code ENMOD.

If BMF has no data available on IDRS, Master File research reveals activity in the account within the past fifty-one months, or if the name line is on IDRS already, no action will be taken.

If an account is requested, but there is no account on the computer tape at Martinsburg Computing Center (MCC); a RS904 is showing on IDRS and the Form 3774, Request for Research has been returned with no record, lost record, or damaged record notated on the form or an unreadable transcript is received; then post a TC 430 (IMF) or TC 590 (BMF) with a zero amount and the current date. In either case, input on IDRS to establish the account.

In general, the collection statute expiration date is ten years from the assessment date. If the statute has expired on a particular account, a TC 608 (Statute Expiration Clearance) will be present on the account.

If there is a retention register request with an unpostable 197 on the account, input ENREQ to establish the name line.

Input the name control change on IDRS.

Refer to IRM 3.17.21.8.1, Form 3413, Section 01, for specific instructions on preparing Form 3413.

Enter all transaction dates, codes, and amounts onto Form 3413.

Element I, Transfer-In Amount, is always zero for Retention Register Reactivations.

Elements A, B, C, and G of Section 40 and all of sections 36-39 must be blank.

At local option, the microfilm retention register transcript or MFTRAZ transcript may be used to directly reestablish an account on Master File, eliminating preparation of Form 3413. To use this alternate procedure effectively, carefully highlight legible transcripts and prepare transcription instructions incorporating the above information.

IMF Accounts moved to retention in 2009 were moved with one position of all money amounts systemically eliminated. If a request to re-establish an account involves an account that was removed in 2009, personnel will need to take the following action:

Once the entity is established, prepare the form to be used to reestablish the tax module. Form 3413 is needed for only a limited number of account reactivations. For BMF, no accounts were removed to retention in 1978 and 1979, so those accounts remained open for two additional years. The last Residual Master File (RMF) was produced in cycle 197901.

Assign a projected posting cycle, 3 weeks from the input date, and notate it on part one of Form 5248. Return part one of the Form 5248 to the requestor. Attach part two of the Form 5248 to the back of the Form 3413 and retain.

Assign the DLN on the transfer documents.

Check ENMOD for Mail Filing Requirement (MFR). If 08, this indicates deceased taxpayer and must be changed using ENREQ or Form 3413 will not post.

Prepare Form 813.

Route documents to Quality Review if they are reviewed in the local campus.

In 1979, an IRAF purge file was created for inactive and erroneous accounts on the Individual Retirement Account File (IRAF).

In 2006, all IRAF files were moved to Individual Master File (IMF). The Purge File was similar to the Retention Register for other files, except that the IRAF has no regular retirement criteria.

Name Control of taxpayer must be present. Refer to Document 7071, Name Control Job Aid, for Section 01 items.

Taxpayer Identification Number (TIN) and TIN Type

MFT Code must be present and must be compatible with the tax class in the DLN. See Exhibit 3.17.21-8.

Tax period

Date of Transfer

Date of assessment

Original assessment transaction code

Original assessment transaction amount

Transfer-in amount

Agreement Date. Enter the date.

Correspondence Received Date. Enter date if present.

Two Percent Interest Date. Enter date if present.

Reference Number (If reference number is present with Doc Code 51, select the case that applies). If processing a complete account transfer with a TC 240 with penalty code 680, enter 680 as Reference Number on the TO side of Form 3413. Do not enter the TC 240 in Section 02-19.

Reference Number Amount. Enter amount that pertains to the reference number. If processing a complete account transfer with a TC 240 with penalty code 680, enter the amount of the TC 240 here. Do not enter the TC 240 amount in Section 02-19

Reversion Date (mmddyy)

Plan/Report Number for MFT 46/74/76/85/86 ONLY

Plan Year Ending Date (yyyymm)

F8288 Trans Date (mmddyy)

Excess Fringe Benefit Year, (yyyy)

4980F Amendment date, (mmddyy)

Beginning in section 02 of Form 3413, list consecutively, the transaction date, transaction code, and transaction amount until all fields have been filled or all the transactions have been entered. This must be done for each amount following the original assessment in section 01.

Valid transaction codes for sections 02-19 are included in Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

Some transaction codes are not valid on Form 3413 for a particular document code and Master File. Some of the reasons are:

When certain transaction codes are invalid for the document code, they must be converted to the equivalent valid code, see Exhibit 3.17.21-5 and Exhibit 3.17.21-6 .

Enter the dates, transaction codes, and amounts onto Form 3413 beginning with section 02.

These sections were designed to accommodate special appropriation credits which may be funded by Congress. Currently, the only credit covered by this code is for solar and wind energy.

The valid transaction codes for each Master File and document code are:

Enter the data onto Form 3413.

Figure 3.17.21-3

Sections 20–23 of Form 3413Sections 20-23 of Form 3413. Refer to IRM 3.17.21.8.3, paragraph (3) for descriptions of valid entries.

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These sections are for non-remittance "status" transaction Codes and Interest to Dates. (Figure 3.17.21-12)

Figure 3.17.21-4

Section 30–33 of Form 3413Sections 30-33 of Form 3413. See IRM 3.17.21.8.4 for complete details of this part of Form 3413.

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Left column of Sections 30-33: Enter the date of the status transaction code or interest to date. There MUST be an equal number of TC 340s in Section 02-19 and 30-33.

Middle column of Sections 30-33: Enter the valid status transaction codes. The valid codes for each Master File and Document Code are found in Exhibit 3.17.21-5 and Exhibit 3.17.21-6.

Right column of sections 30-33: statute extension date or assessment date. The statute extension date must be later than the status transaction date. Enter the date associated with TC 550, TC 560, or TC 564. For all other transaction codes, this field will be blank.

If an invalid code is requested on the source document, indicate on the document going back to the requestor that the code is being dropped. If necessary, most of the codes can be input on IDRS after the Form 3413 has posted.

The program will accept up to twelve transactions.

These sections are used for reporting IRS abstract information for document code 51 only, when TC 15X, TC 29X, or TC 30X transaction codes are present.

Abstract information is valid and required for the following forms:

Enter the abstract numbers in the left column of Sections 36-39 and the amounts in the right column. (Figure 3.17.21-13)

Figure 3.17.21-5

Section 36–39 of Form 3413Section 36-39 (Abstract number and Abstract amount) for Form 3413.

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There are two abstract numbers for Tax Motivated Transactions, 221 (Tax) and 222 (Interest). They are valid for all MFT codes except 15, 46, 77, and 78. If one is present, both must be. The TC must be 340 or TC 341.

The total of the abstract amounts excluding 221 and 222 will equal the net tax assessment. The net tax assessment is determined by adding the amounts associated with TC 15X, TC 29X, and TC 30X.

The valid abstract numbers are:

Most errors in amount and abstract numbers can be resolved by examining the source documents. See IRM 3.17.41, Accounting and Operating Reports, for definitions of each abstract number. If errors occur frequently, contact the requestor or return the documents to the requestor for correction.

Elements A, B, and C contain wage information for withholding and Federal Insurance Contribution Act (FICA) tax returns, Form 941, Employer’s Quarterly Federal Tax Return, Form 943, Employer’s Annual Tax Return for Agricultural Employees, Form 944, Employer’s Annual Federal Tax Return, and Form 945, Annual Return of Withheld Federal Income Tax. These fields are valid only for Document Code 51, Tax Class 1 records.

Sort Form 3413 by tax class and type of transfer.

Assignment of the DLN.

Prepare Form 813 for each block.

Route pre-journalized blocks to the RACS Team for input.

Route copy two of Form 813 to the Data Conversion Operations for establishment on the Service Center Control File.

Route the blocked Form 3413 with Form 813 (original) to the Batching Team for input to ISRP.

Do not transfer subsidiary corporation prepayments to a parent corporation until a consolidated Form 1120, U.S. Corporation Income Tax Return, is filed. When such credits are transferred, the transfer and other related actions described below will be initiated and controlled by the Campus with which the consolidated return is filed.

Locate and verify credits claimed on line 32 of Form 1120.

Short period returns occur for several reasons:

These returns are received from rejects and controlled in the same manner as the consolidated corporation returns.

Procedures for researching and transferring credits and for releasing refunds are the same as for consolidated returns.

Form 1120 and Form 1041 manual refunds are routed to Accounting when the forty-five day interest free period is in jeopardy. The Credit and Accounts Transfer Team will request a transcript to verify the estimated tax (ES) credits claimed on the return. If the credits are the same as claimed on the return, initiate Manual Refund procedures as prescribed in IRM 3.17.79, Accounting Refund Transactions, and IRM 21.4.4, Manual Refunds.

All Submission Processing, Accounting manual refunds that are prepared and processed must be monitored by the initiator until the TC 840 post to eliminate issuing an Erroneous Refund.

The procedures outlined in IRM 21.4.4.6.1, Refund Inquiries, Manual Refunds, Monitoring Manual Refunds, Effective June 20, 2023, responsibility for all manual refund monitoring is now performed at the Headquarters level.

Form 3413 is used by Accounting - credit and account transfers function to record account transfer information for input via Integrated Submission and Remittance Processing (ISRP).

Numbering

Tax Class will always be "6" .

Doc Code will be "58" .

Julian date is current date.

Block will depend on tax form/MFT. See Exhibit 3.17.21-2.

Tax Class will always be "6" .

Doc Code is "77" .

Julian date is current date.

Blocking can be 100-999. Exhibit 3.17.21-6

The Form 514-B is used to transfer the collection of a taxpayer's account from Master File to Non-Master File.

Numbering

Form 2424 is used to transfer a credit or a debit between Master File and Non-Master File or between two Master File accounts. It consists of a credit copy and debit copy. The form is prepared in duplicate with the credit copy as the original.

Numbering

Valid transaction codes: 170, 180, 270, 280, 340, 360, 430, 610, 611, 612, 640, 641, 642, 650, 651, 652, 661, 662, 670, 671, 672, 680, 681, 682, 690, 691, 692, 694, 695, 700, 702, 730, 731, 732, 764, 765, 766, 767, 820, 822, 850, 851, and 852.

Use Doc Code 48 or 58 depending on transaction code.

Use current date for Julian date on Form 3809.

Tax Class if MF (Master File) will depend on Form Number/MFT.

Tax Class if NMF (Non-Master File) will always be "6" .

Blocking for NMF will depend on the Form Number/MFT. Never use 000 blocking on NMF.

Blocking for MF can be 000-999.