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Part 21. Customer Account Services

Chapter 2. Systems and Research Programs

Section 4. Master File Accounts Maintenance

21.2.4  Master File Accounts Maintenance

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21.2.4.1  (01-11-2008)
Accounts Maintenance Overview

  1. Accounts Maintenance (AMRH) is general account research and resolution of unresolved accounts. AMRH identifies Service areas where items do not process through the system correctly or completely.

  2. This section provides instructions to correct problem modules so they can move to the retention register.

    • Most of these modules remain on the Individual Master File (IMF) or Business Master File (BMF).

    • AMnn, STAT and AM-X transcripts (IMF and BMF) identify unresolved accounts after a certain length of time. ( See Exhibit 21.2.4-2., AMRH Freeze Table IRAF. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for specific transcript extraction criteria.)

  3. This section provides guidance for controlling and resolving frozen and unsettled conditions on the Master Files.

21.2.4.1.1  (01-11-2008)
Accounts Maintenance Mission and Guidelines

  1. The overall mission of the Account Maintenance (AMRH) program is to:

    • Identify unresolved accounts on the Master Files and produce AMRH transcripts for resolution.

    • Provide feedback to areas (and Quality Assurance) whose actions caused the unresolved conditions.

    • Inform Headquarters of systemic or procedural deficiencies.

    • Coordinate all open controls with the appropriate functions.

  2. The overall guidelines of the AMRH program are to:

    • Review and resolve all freezes or conditions that result in either an AMRH or DIAG–Q transcript.

    • Maintain adequate staffing for timely resolution of transcripts.

    • Work with the Statute team to minimize barred assessments.

21.2.4.2  (01-11-2008)
Accounts Maintenance Inventory

  1. This section discusses inventory for Account Maintenance. See IRM 25.6, Statute of Limitations, for detailed information on statute of limitations.

    Note:

    If the Assessment Statute Expiration Date (ASED) is within 180 days for AMRH transcript cases (90 days for non-transcript) and corrective action may require a tax assessment, route the case to Statute.

21.2.4.2.1  (10-01-2008)
Computer Output

  1. The Accounts Management System (AMS) uses Desktop Integration (DI) to electronically deliver Accounts Maintenance (AMRH) transcripts on a weekly or monthly basis replacing the printed paper forms. The data is extracted and sorted by a computer program and cases are loaded into the AMS/DI system as inventory items. The AMS/DI system will automatically assign inventory cases to employees based on their skill codes and the number of cases in inventory. The AMRH manager, lead or clerk may also manually assign transcript inventory to employees in their unit.

  2. AMS/DI relays the information to the Integrated Data Retrieval System (IDRS) to establish control bases. See Document 6209, Section 14.9, Integrated Data Retrieval System (IDRS), Category Codes, for valid category codes.

  3. Assigned and unassigned cases reside on AMS/DI.

21.2.4.2.1.1  (10-01-2008)
AMRH Transcripts

  1. An AMRH transcript generates for each module, Individual Retirement Account File (IRAF), IMF and BMF, with an unresolved condition. A specific module transcript generates for all IMF/BMF AMRH categories with the numeric indicator for the AMRH category met. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF.

  2. Cases are prioritized by run date, large dollar amount ($25K or more), oldest tax period, and priority of transcript (i.e. VERFPYMT).

21.2.4.2.1.2  (12-01-2000)
Overage Listing

  1. This listing identifies cases assigned to a specific individual that are unresolved for 120 days. Give aged cases, or cases that will age the following week, priority attention.

21.2.4.2.1.3  (10-01-2008)
Diagnostic Transcripts

  1. Diagnostic (DIAG) transcripts identify unresolved IDRS conditions. They may also identify operational problems in other functional areas. DIAG transcripts are received in paper form and must be researched through DI. There are two types of diagnostics:

    1. DIAG-P (Transactions): Issued for modules with transactions pending for an abnormal length of time (e.g., RJ, AP/EP, TP, PN, RS, UNNN). The IDRS Support Group works these transcripts.

    2. DIAG-Q (Tax Modules): Issued weekly to identify IDRS problem modules and provide a random review of IDRS file contents. They help identify unnecessary accounts on IDRS that can be removed. The AMRH team works these transcripts.

  2. Certain DIAG-Q transcripts are reviewed in other areas and then routed to AMRH:

    1. The IDRS Support Group routes type " 1-9" transcripts with reason code 33 to the AMRH team, excluding conditions not resolved in AMRH. (Reason code 33 indicates a freeze or hold condition is on the module, which should have been previously identified by an AMRH transcript.)

    2. Other areas may route transcripts to AMRH. For example, Compliance Services Collection Operations (CSCO) routes transcripts with Reason Code EE or QQ, and a TC 610 when the ASED is more than six months, to AMRH.

  3. Resolve these transcripts using general AMRH procedures and specific instructions for the particular freeze code identified. Also use IDRS control base information to determine why the DIAG was issued (i.e., previous action taken did not resolve the condition identified). See IRM 2.9.1, Integrated Data Retrieval System (IDRS), for additional information.

    If Then
    A DIAG without a previous AMRH control base is received The AMRH manager should determine if a systemic problem exists within the AMRH program.
    A problem is identified (e.g., the AMRH program does not search for this condition) Contact the Planning & Analysis (P&A) Program Analyst and prepare Form 5391, Procedures/Systems Change Request, if necessary.
    ASED is expired or will expire within 180 days Route the transcript to the Statute function.

21.2.4.2.1.4  (01-11-2008)
Activity Codes

  1. See Exhibit 21.2.4-4., Activity Codes Used to Work AMRH Cases, when working AMRH cases.

21.2.4.3  (01-11-2008)
Procedures for Accounts Maintenance

  1. The following section explains the procedures for Account Maintenance.

  2. These procedures do not circumvent the Quality Assurance Program within a campus.

  3. AMRH transcripts often reflect problems in other processing areas. The AMRH Supervisor, Work Leader and Tax Examiners should watch for recurring problems in the extraction. When problems persist, the AMRH Supervisor will:

    • Inform the responsible area and provide examples and volume figures, whenever possible.

    • Follow up on problems to ensure corrective actions were taken.

  4. Report erroneous transcript data to the AMRH Analyst, Policies, Procedures & Guidance (PPG).

21.2.4.3.1  (05-30-2008)
Accounts Maintenance Resolution

  1. To resolve freezes or unsettled conditions, prepare and input the required documents. If the corrective action revises tax, penalty, interest assessments, withholding or other refundable credits, input adjustment. (See IRM 21.5.1, General Adjustments; IRM 21.5.2, Adjustment Guidelines; IRM 21.6.7 , Adjusting Individual Tax Accounts; IRM 21.6.5, Individual Retirement Arrangements; and IRM 21.7, Business Tax Returns and Non-Master File Accounts.)

    • Adjustment action : Make the adjustment. Do not reassign the case to Adjustments, unless the case is technical/complicated (e.g. Net Operating Loss (NOL), tentative carryback, Scrambled Social Security Number (SSN)).

    • Credit transfer: Make the transfer. See IRM 21.5.8, Credit Transfers.

    • Research: Follow all research instructions in IRM 21.2.4, Master File Accounts Maintenance.

    • Document history on AMS/DI: Record and date the steps used to resolve the freeze or unsettled condition; list the steps in chronological order in the AMS/DI transcript case notes.

    • Multiple freezes in an account: Resolve if the AMRH criteria for each freeze or condition has been met, unless instructions under the specific freeze state otherwise.

21.2.4.3.2  (10-01-2008)
Accounts Maintenance Initial Processing

  1. As the cases are worked, Tax Examiners should look for quick closures. These are cases with:

    • Pending transactions that will resolve the AMRH freeze and module balance.

    • Multiple IDRS control bases with another campus area. Coordinate with the other area to determine whether your AMRH transcript will be resolved based on their case. If so, close the case to them. If not, or if unable to contact the other area, continue with specific AMRH procedures.

    • An unreversed Criminal Investigation (CI) freeze in the module. Route to the Fraud Detection Center (FDC). See IRM 21.2.4.3.18., Active Criminal Investigation.

    • An open Audit Information Management System (AIMS) Control, TC 420 or TC 424 posted (except 08-X, 16J- and VERFPYMT freeze cases). See IRM 21.2.4.3.13., Audit Information Management System (AIMS).

    • A case to be routed to another campus. See IRM 21.2.4.3.7., Transmitting Cases to Another Campus.

    • An unreversed TC 520 in the account. See IRM 21.2.4.3.12., Bankruptcy/Litigation (TC 520 with —V or —W Freeze).

    • TC 922 an Underreporter process code posted, and transcript appears to be a result of or related to Automated Underreporter (AUR). See IRM 21.2.4.3.40.1., AM11 Resolution, to determine if you should route to the AUR function at the campus that originated the TC 922. If AUR returns the case, indicating the AUR issue was resolved, AMRH must resolve the freeze. If AUR returns the case, indicating the payment is not related to AUR and the AUR case is still open, AMRH should close the transcript case.

    • An Non-Master File (NMF) liability freeze (V-,TC 130-18); route to NMF accounting unit.

    • An Offer-in-Compromise freeze (—Y, TC 480/780); route to Compliance Services Collection Operations (CSCO).

  2. Research the remaining cases. If research indicates, request further documentation. Associate the received documents with the related case or retain in a separate file in the same sequence as the related cases.

  3. As long as an AMRH case is workable, the case must remain in " Active" status on AMS/DI. A case is workable unless it is temporarily in "Suspense" status due to a delay in processing that is beyond the assignee's control:

    • Waiting for a reply from the taxpayer

    • Waiting for a reply from another campus

    • Waiting for Files (e.g. ESTAB, special search)

    • Waiting for technical assistance

    • Waiting for Examination (e.g. Cat. A referral)

21.2.4.3.3  (10-01-2008)
Civil Penalty Modules

  1. Examination, Tax Exempt/Government Entities (TE/GE), Collection and Information Return Processing (IRP) assess certain civil penalties that penalize persons for acts related to another’s tax return. Examples include the Trust Fund Recovery Penalty and Return Preparer Penalties.

  2. Two Master File Tax Codes (MFT) record assessments, abatements and other account actions:

    • MFT 55: processed on IMF

    • MFT 13: processed on BMF

  3. Penalties post as a TC 240 with a three-digit reference number, which identifies the penalty type and the function that assessed the penalty. A TC 290 .00 is input along with TC 240. A TC 150 never posts to a civil penalty module. Refer to Document 6209, Section 11.10.6, for a list of civil penalty reference numbers.

    If Then
    Module contains a Trust Fund Recovery penalty (TC 240 with ref. 618) Route the transcript to Ogden CSCO.

    Exception:

    on manual refund cases, route the case to the campus that initiated the manual refund.

    Module contains a W–4 penalty (TC 240 with ref. 615, 616) Forward all assessments, penalty abatement requests, and related correspondence to Fresno Compliance Services, Stop 81403.

  4. Refer to IRM 20.1 (Penalties), for an explanation of civil penalties.

21.2.4.3.3.1  (10-01-2008)
Civil Penalties Processing

  1. AMRH should identify and work unresolved conditions. Because these modules are non-return modules, some AMRH conditions may not apply and some are identified by a TC 240 instead of the TC 150.

    Note:

    STAT transcripts do not generate based on a "true" ASED; the statute bar date depends on taxpayer action or non-action. Therefore, STAT transcripts are extracted using the minimum amount of time until the ASED has expired. (The "dummy" ASED date for these accounts is two years and six months from the date of the control Document Locator Number (DLN) in the module.)

  2. If the identified account contains a credit and no TC 240:

    1. Look for a possible open case in Automated Underreporter (AUR), Examination, Collection, TE/GE, or account where the penalty may be posted.

    2. Review IDRS (valid and invalid segments, spouse's SSN), NMF, MFT 30 audit assessments and any open balance accounts.

    3. If a payment was intended for another account, transfer the credit.

    4. Research payment through Remittance Transaction Research (RTR). If necessary, request the payment document, Doc Code 54 or 47 documents from files (look for an unassessed penalty listed on audit papers or the payment voucher), or contact the taxpayer and ask why the payment was submitted.

    5. If research or the taxpayer's response indicates a penalty should be assessed, route to the responsible area.

    6. See IRM 21.2.4.3.10. , Applying Unresolved Credits, if unable to determine where to apply the payment.

  3. If there is a TC 240 in the account and AMRH research does not resolve the account balance:

    1. Contact the area responsible for assessing the penalty for assistance.

    2. If there are multiple penalties in the account, contact the area responsible for the last assessed penalty.

    Note:

    Blocking Series 609-629 for IMF identifies an AUR assessed penalty.

  4. Process AMRH transcripts received for civil penalty modules (MFTs 13/55) according to general AMRH instructions and specific instructions for the particular category code or transcript type generated.

  5. On a civil penalty module, a TC 290 .00 must be input along with the TC 240, which posts on Master File. If a freeze should be released, input necessary transactions on MFT 13 or 55 accounts to reverse the freezes (e.g., TC 571 to release TC 570). If a TC 290 .00 is input to release the freeze, use Blocking Series 15.

21.2.4.3.4  (10-01-2008)
Accounts Maintenance Correspondence

  1. Accounts Maintenance is responsible for requesting any documentation necessary to resolve AMRH conditions. Initiate correspondence even if another function previously sent correspondence. See Exhibit 21.2.4-1., Letters Used to Resolve AMRH Cases.

  2. Correspondence is also required to explain:

    1. How the account was corrected.

    2. Taxpayer errors discovered in processing which caused or will cause processing delays (only if there was not prior notification).

  3. Send a closing letter to the taxpayer when releasing a freeze or resolving a condition that results in either a refund or balance due. This applies to all cases, EXCEPT for the following:

    1. A CP notice generates to the taxpayer, due to the closing action taken, explaining the overpayment/underpayment and eventual refund or balance due.

      Note:

      A credit transfer made to a settled period without a correspondence received date does not generate a notice to the taxpayer.

    2. The action results in a refund the taxpayer expects (e.g., the taxpayer responded to CP 80/080 notice with a return, the return was processed and the refund was issued).

      Note:

      In cases where an adjustment is made to the taxpayer's account, if the generated adjustment notice will not give an adequate explanation of the actions taken on the account, send a closing letter explaining the adjustment.

  4. Use IDRS letters to correspond with taxpayers whenever possible. Managers must review Quick Notes. Use simple language to communicate the message.

    1. Review IDRS to ensure the transcript address is current.

    2. Check the CAF file to ensure the information is mailed to the taxpayer's representative, if applicable.

21.2.4.3.4.1  (10-01-2008)
Responding to Taxpayers

  1. Mail responses to taxpayer correspondence within 30 calendar days of the initial IRS received date (counting the day it is received). If unable to meet this time limitation, send an interim letter within 30 calendar days of the IRS received date, stating the reason for the delay and a completion date.

  2. Follow timeliness guidelines for acknowledging and working taxpayer correspondence. See IRM 3.30.123.5, Taxpayer Correspondence. Managers must monitor compliance with these guidelines. Use either computer generated or manual reports.

  3. Answer all correspondence received from taxpayers, indicating:

    1. "This is in reply to your correspondence dated MM/DD/YY" .

    2. An explanation of the action taken, even if the action was exactly what the taxpayer requested.

      Note:

      Do not correspond to the taxpayer indicating we received the requested information.

  4. If during a taxpayer contact it appears there may be a hardship situation, complete Form 911, Application for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and refer the taxpayer to the Taxpayer Advocate Service (TAS). Cases that can be resolved on the "same day" should not be referred to TAS unless the taxpayer makes the request. The following two situations meet the definition of "same day resolution:"

    • The issue can be resolved within 24 hours.

    • The IRS takes steps within 24 hours to resolve the taxpayer's issue.

    See IRM 13.1.7.4, Same Day Resolution by Operations, for more information. Check TAS box on DI, if applicable.

21.2.4.3.4.2  (01-11-2008)
Requesting Information From Taxpayers

  1. All correspondence to taxpayers requesting information should indicate:

    1. A 30 day response time.

      Exception:

      Overseas taxpayers have a 45 day response time

    2. Action the IRS will take if a timely response is not received.

    3. "When you reply, please send us your telephone number and the most convenient time for us to call so we may contact you if we need more information."

  2. If a phone number is available, and local management approves, call the taxpayer for the information. If the taxpayer requests confirmation of the conversation, send a follow-up letter.

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See IRM 21.1.3.2, General Disclosure Guidelines. See IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail, before leaving any messages on a taxpayer's answering machine. See IRM 11.3.1.10 , Facsimile Transmission of Tax Information, prior to faxing confidential tax information to the taxpayer.

21.2.4.3.4.3  (10-01-2008)
Taxpayer Response

  1. If the taxpayer responds (timely or late) to a request for information and the case cannot be closed within 30 days, send an interim letter to the taxpayer. An interim letter must:

    1. Identify the reason a final response is delayed.

    2. Specify when the final response will be mailed.

    3. Include the name, telephone number, and organizational symbols for reference purposes as a contact point.

    4. Indicate "When you reply, please send us your telephone number and the most convenient time for us to call so we may contact you if we need more information."

      Note:

      See IRM 21.3.3.2(2), What is Correspondence - Action 61/Policy Statement P-6-12 Exclusion List, for work (e.g. incoming replies to solicitations for information needed to secure or complete the processing of a tax return) that does not meet the definition of correspondence under Action 61, and does not require an interim letter.

  2. Review all late replies and take the following action:

    If the late reply Then
    Relates only to a prior credit that was transferred to Excess Collection File (XSF) or left on Master File AMRH works the case.
    Is received with a return and the taxpayer is liable for filing Input Transaction Code (TC) 599, Closing Code 18, if the module is in Status 02 or 03 and route taxpayer’s return for processing.
    Is received with a return and the taxpayer is not liable for filing See IRM 21.2.4.3.17, Taxpayer No Longer Liable to File Return.
    Is in reference to issues other than those above Forward the case to the Adjustments function or work the case according to local procedures.

    Note:

    If there is an open control base on IDRS, contact the controlling area.

21.2.4.3.4.4  (01-11-2008)
No Reply From Taxpayer

  1. On all cases where the taxpayer did not reply to correspondence, document "No Reply" on AMS/DI. Review IDRS Command Code (CC) SUMRY for additional control bases. Follow instructions for no replies under the appropriate freeze code closing action.

    Note:

    Research for a more current address is not required.

21.2.4.3.4.5  (10-01-2008)
Purging Correspondence

  1. On AMS/DI, the correspondence response time is set based on the type of correspondence. A longer response time is allowed for overseas taxpayers than domestic taxpayers, who get 45 days.

    Note:

    The case will automatically be moved from suspense inventory to active inventory after the 45 day response period.

21.2.4.3.5  (01-11-2008)
Address Change/Correction

  1. Correct spelling, typographical or any errors in the taxpayer's entity. See IRM 3.13.5, IMF Account Numbers or IRM 3.13.2, BMF Account Numbers, for general requirements for a change of address. Also refer to Command Codes INCHG and BNCHG.

  2. See IRM 21.3.4.12.2, Taxpayer Request for Address Change, for further information.

    Note:

    When obtaining information from a person, due to the high level of identity theft, it is extremely important to ensure the changing of a taxpayer’s address is warranted and necessary, as shown in supporting documentation/forms. See IRM 21.6.2.4.2.2, Taxpayer Inquiries Involving Identity Theft, for more information on identity theft.

21.2.4.3.6  (10-01-2008)
Undeliverable Correspondence

  1. Research to correct incomplete or incorrect names and addresses on undelivered letters. If the data was complete and correct, research for a more current address. If the tax return is present in your case file, check it for more complete or correct information. (Do not order the return just to check the address). Otherwise, research DI history, RTR, Correspondence Imaging System (CIS), and IDRS CC ENMOD, INOLE, and IRPTR.

  2. If you find more complete or correct information or if you find a more current address, reissue or re-mail the correspondence.

    Note:

    Issue a letter to a third party only if that party is identified in the CAF, which maintains data for Authorized Representatives (e.g., Form 2848, Power of Attorney and Declaration of Representative), and appointees ( Form 8821, Tax Information Authorization).

  3. If another address is not found or a reissued letter is undeliverable, follow instructions under the specific freeze.

    Note:

    If a taxpayer is incarcerated, correspondence may be returned by the prison, stating that an inmate number is needed in order to deliver the letter. If you do not have an inmate number, consider the correspondence undeliverable.

21.2.4.3.7  (01-11-2008)
Transmitting Cases to Another Campus

  1. Do not transfer a case to another campus except TC 840 (transfer a case to the campus that initiated the manual refund only), or TC 922 with an Underreporter process code (these transaction codes must relate to resolving the transcript generated in order to transfer). See IRM 21.2.4.3.40.1 , AM11 Resolution, to determine if you should route to the AUR function at the campus that originated the TC 922. If research indicates the case is resolved, do not transfer.

  2. International returns are subject to the same test as other returns when determining whether to transfer to another campus. See IRM 3.10.72.20, International Sorting Instructions, for additional criteria.

    1. An International or Possession return has either a foreign address or income from a foreign source. In addition, there are a variety of forms filed that are treated as International returns. See IRM 3.10.72, Extracting, Sorting, and Numbering, for a list of forms.

  3. Use Form 3210, Document Transmittal, to transfer cases.

21.2.4.3.8  (01-11-2008)
Treasury Bonds (B—Freeze)

  1. If a "B—" freeze is identified on an account, route the case to the area that handles Treasury Bond issues. See IRM 21.5.7.4.7.13, Treasury Bonds.

21.2.4.3.9  (01-11-2008)
Increased Liability Cases

  1. In some cases, the original return was designated for audit but was not reviewed by Examination or TE/GE. Consequently, any additional liability reported on an amended return may not have been assessed. Be aware of actions needed to assess additional liability. See IRM 21.6 , Individual Tax Returns, for IMF. See IRM 21.7, Business Tax Returns and Non-Master File Accounts, for BMF.

21.2.4.3.10  (10-01-2008)
Applying Unresolved Credits

  1. If the payment belongs to the taxpayer, look for other tax periods or MFTs with an outstanding balance (OBL). Examine the tax return, payment voucher, and taxpayer contact. Apply the credit as follows:

    1. If the debit balance, including penalty and interest, is less than the credit available, transfer the credit to debit balance module; allow remaining credit to refund.

    2. If the debit balance is equal to or more than the credit, release the freeze and let the computer offset.

      Note:

      Do not transfer a credit to a module with a freeze or restricted condition that would prevent the computer from offsetting in, unless the credit belongs on the debit module (ex "-E" freeze, Master File Status 14, etc.).

  2. If, after performing AMRH research and following AMRH procedures, credits cannot be applied to an account and the case is still not resolved, transfer the credit to:

    1. Excess Collections (Account 6800) if the credit is over one year old (also apply credits with Doc Codes 48, 58, 65, regardless of their age, to this account); use Form 8758, Excess Collections File Addition.

    2. Unidentified Remittance File (Account 4620) if the credit is less than a year old (other than Doc Codes 48, 58, or 65); use Form 2424, Account Adjustment Voucher.

    Note:

    Follow specific instructions for the type of transcript. For example, on Credit, No Return (12Y) transcripts, leave the credit on Master File and close case control, "NOREPLY. " See IRM 21.2.4.3.42.1., AM12 Transcript Resolution – No Reply to CP 80/080.

  3. If it is evident that the credit is not a true credit (e.g., transfers–out/in, erroneous posting), notate on Form 8758 or Form 2424 that the credit is not valid.

  4. See IRM 3.17.10.3, Unidentified Remittance File, (URF). See IRM 3.17.220, Excess Collections File, for additional processing instructions.

  5. Before transferring withholding credits (TC 806) to Account 6800, validate with Form W-2, Wage and Tax Statement, Form 4852, Substitute for Form W-2, Wage and Tax Statement, (substitute from the taxpayer) or facsimile, or Command Code IRPTR. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

21.2.4.3.10.1  (10-01-2008)
Excess Collection File (XSF)

  1. To apply credit to the on-line Excess Collection File (XSF), prepare Form 8758, Excess Collections File Addition, and attach documentation, proving there is a credit; also indicate the research performed. Forward this information to the Excess Collection area. When transferring multiple payments to the XSF, mark Box 8 on Form 8758 to ensure that a TC 570 will be entered with the credit transfers to prevent erroneous refunds.

    1. As of January 1, 2008, all credits and payments are assigned a Trace ID Number for tracking purposes. If you are transferring a credit or payment to Excess Collection File and the credit or payment is dated after December 31, 2007, you must enter a Trace ID Number in box 16 of Form 8758, Excess Collection File Addition. See IRM 3.17.220.1.9, Trace ID Number for Tracking Credits, for more information.

    2. When a credit or payment is moved to the Excess Collection File (XSF) or the Unidentified Remittance File (URF), a Transaction Code (TC) 971 Action Code (AC) 296 must be input on the module. This indicates all research of the primary and related Taxpayer Identification Numbers (TINs) was completed prior to the transfer to XSF or URF. Related TINs may include a secondary Social Security Number (SSN) or an Employer Identification Number (EIN).

    3. On large dollar credit modules ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ initiate telephone contact to determine proper disposition of unresolved payment(s) or credit(s). Research IDRS, DI history, RTR, CIS or Directory Assistance to locate a taxpayer telephone number. If you cannot get a telephone number from above research, research the internet per local management guidelines to obtain a contact telephone number. Utilize websites available to the general public (e.g. Google, SEC, EDGAR, VIVISIMO, and SWITCHBOARD). Document case history to include what research tools were used to obtain telephone number and whether or not a successful contact is made.

    4. Large dollar credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must have managerial approval of the originator's manager notated on Form 8758, Excess Collections File Addition, prior to the transfer to the XSF or URF.

  2. To retrieve credit from XSF, prepare Form 8765, IDRS Control File Credit Application. See IRM 3.17.220, Excess Collections File, for exhibits.

21.2.4.3.11  (10-01-2008)
Erroneous Refunds

  1. Incorrect refunds are sometimes issued to taxpayers due to misapplied payments, incorrect tax adjustments, fraudulent returns or incorrect TINs. See IRM 21.4.5.4, Erroneous Refund Categories and Procedures.

21.2.4.3.12  (10-01-2008)
Bankruptcy/Litigation (TC 520 with —V or —W Freeze)

  1. AMRH transcripts will generally not be issued if there is an unreversed TC 520 (with Closing Code (CC) 83, 85, or 86-89) in any module of the taxpayer's account. If there is an unreversed TC 520 with a "—V" or "—W" freeze posted to the account, close the case on AMS/DI with "MISC" . Enter "TC520POSTED" as a narrative on AMS/DI.

21.2.4.3.13  (10-01-2008)
Audit Information Management System (AIMS)

  1. An unreversed TC 420 or TC 424 indicates that Examination, TE/GE or Appeals requested the return.

  2. All AMRH transcripts with an "-L" freeze are suppressed, except for the following (work according to their specific instructions):

    • 06–W

    • 07–V

    • 08–X

    • 13–G

    • 14–0

    • 15–U

    • 16 J-

    • VERFPYMT

    Note:

    Before resolving these freeze conditions, contact the Exam or TE/GE area working the case.

  3. The remaining transcripts are suppressed until the ASED is within six months or the "-L" freeze is resolved, but the AMRH freeze still exists. After the AMRH transcript is extracted, an "-L " freeze may be applied. For these transcripts, use the following procedures:

    1. Close the case on AMS/DI with "MISC. " Enter "OPENTC424/420" as a narrative on AMS/DI.

    Exception:

    Route cases with TC 420 and an open Substitute for Return (ASFR) to Exam. See IRM 21.2.4.3.21, IRS Prepared Returns.

21.2.4.3.14  (01-11-2008)
Monthly Filer — Form 941M Cases

  1. These cases have either a 09 or 10 filing requirement and may be assigned to a revenue officer. AMRH may receive a Form 941M , Employer’s Monthly Federal Tax Return, in response to correspondence although the filing requirements are other than 09 or 10 (i.e., AM22, AM05 or AM09 transcripts).

  2. If the filing requirements are other than 09 or 10, return the Form 941M, Employer’s Monthly Federal Tax Return, to the taxpayer with a 3007C letter explaining they do not have 941 monthly filing requirements.

  3. If the filing requirements are 09 or 10, call the corresponding field office. The revenue officer responsible for 941M filers will help resolve the AMRH case.

21.2.4.3.15  (01-11-2008)
End of Year Processing

  1. If corrective action is identified before or during the end of year cutoff, but prior to the