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Part 21. Customer Account Services

Chapter 7. Business Tax Returns and Non-Master File Accounts

Section 12. Non-Master File (NMF) Adjustments

21.7.12  Non-Master File (NMF) Adjustments

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21.7.12.1  (10-01-2009)
Non-Master File (NMF) Adjustments Overview

  1. This section provides instructions for NMF adjustments requiring a correction, abatement, or assessment for:

    • Tax, penalty, or interest

    • Withholding or other refundable credits

    • Miscellaneous taxes not requiring the filing of a regular return

  2. A toll-free number (1-888-829-7434) now appears on all NMF notices. Calls are routed based on the type of call (individual/international/business). The individual calls are routed to Philadelphia Accounts Management. Calls regarding the Foreign Investment of Real Property Tax Act, Forms 8288, 8288-A, 8804, 8805, 8813, and other internationals issues are routed to Philadelphia Accounts Management, also. The business calls are routed to Cincinnati Accounts Management.

21.7.12.1.1  (10-01-2008)
Non-Master File (NMF) Centralization

  1. As of September 22, 2006, all Non-Master File (NMF) has been centralized in the Cincinnati Submission Processing (SP) Center.

21.7.12.2  (10-01-2009)
What Are NMF Adjustments/Correspondence Cases?

  1. Accounts Management processes the NMF cases listed below:

    • Form 1331-B, Request for Adjustment

    • Form 3465, Notice of Adjustment

    • Form 843, Claim For Refund and Request for Abatement

    • Form 8849, Claim for Refund of Excise Taxes

    • Combination Master File (MF) and pre-MF adjustments

    • Various requests including letters, forms (e.g., Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts, Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies)

    • Form 8697,Interest Computation Under the Look-Back Method for Completed Long-Term Contracts (processed on NMF prior to January -1, 2005, and afterwards to Master File)

  2. NMF returns are subject to the same penalty and interest provisions as MF returns, unless otherwise stated in IRM 20.1.1, Penalty Handbook - Introduction and Penalty Relief, and IRM 20.2.1, Interest - General.

  3. NMF accounts are included on Integrated Data Retrieval Systems (IDRS) when they reach Taxpayer Delinquent Account (TDA) status (status 22 on Non-Master File, status 26 on Master File).

  4. When applicable, NMF accounts are subject to the lower rate of credit interest on the portion of Business Master File (BMF) corporate overpayments exceeding $10,000.00 as established by IRC Sec. 6621(a)(1) (last sentence). See Rev. Rul. 2009-17 announcing rates for the calendar quarter beginning July 1, 2009 at the "Table of Interest Rates for Corporate Overpayments Exceeding $10,000." This interest rate is generally referred to as the General Agreement on Tariffs and Trade (GATT). See IRM 20.2.4.9.1, GATT Credit Interest Computations on Overpayments, for more information.

21.7.12.3  (01-04-2007)
NMF Adjustments Research

  1. Tax examiners (TE's), schedule clerks, and supervisors are responsible for separate duties.

  2. Tax Examiners (TE's) complete allowance documents in full before forwarding the documents to be scheduled. No other employees can prepare the allowance document and the refund, credit, or abatement schedule under any circumstance.

  3. Schedule Clerks never prepare allowance documents. After over assessments (OA) are scheduled, a designated employee secures the signature of the certifying officer and transmits the schedule and the allowance documents, as required, without returning either to the originating action unit.

  4. Supervisors of TE's and schedule clerks must give special attention to these activities to assure allowances are correctly documented and scheduled.

  5. The Form 1331, Notice of Adjustment, series, and for refund cases, Forms 3753, Manual Refund Posting Voucher or Form 5792, Request for IDRS Generated Refund, are used as the allowance documents to dispose of a NMF OA.

    If Then
    Disposition of the NMF OA results in a refund The person appointed to authorize manual refunds signs the allowance documents after review.
    Abatement or credit offset results Supervisory signature authorization is not required.

  6. All adjustment documents and forms going to Non-Master File for processing must have a copy of a current NMF transcript or computer display copy attached. Any document received without a transcript attached is returned to the originator. The transcript identifies whether it is a Non-Master File account. Transcripts attached to the documents ensure timely processing of refunds, credits and abatements to the Automated Non-Master File (ANMF) database.

    Note:

    Adjustments are sent to the address on the NMF transcript, which should show Cincinnati campus.

21.7.12.3.1  (01-01-2005)
Automated Non-Master File (ANMF)

  1. NMF is automated nationwide. Employees have the capability of on-line account research and transcript requests.

  2. ANMF is an independent research data base which does not interface with IDRS.

  3. Access to ANMF requires both a unique login and a password which are obtained by submitting On-Line (OL) 5081 to the Enterprise Computing Center in Memphis, Tennessee. The Data Base Administrator (DBA) is the Accounting Function expert on technical matters related to the ANMF.

  4. It is no longer necessary to submit requests to Accounting via Form 4338, Information or Certified Transcript Request, to secure Universal Location Code (ULC) information. However, accounts closed prior to 1990 still require the preparation of Form 4338.

21.7.12.3.1.1  (01-01-2007)
NMF Account Transcripts

  1. The Taxpayer Identification Number (TIN) is used as the search criteria to assure all related transcripts for that taxpayer are located prior to requesting the transcript(s). Since NMF is assessment based, instead of module based as Master File (MF), a taxpayer can have multiple NMF accounts for the type of tax and period ending. In this case, NMF establishes multiple accounts with an actual period ending and "dummy" period ending. The actual period ending carries the true tax period ending, if the account has a "dummy" period ending.

    Example:

    The true tax period is 200912. If a subsequent TC 290 is input, it posts with a dummy tax period such as 3001. An additional TC 300 input on the same account after the TC 290, posts with a dummy tax period such as 3002. In order to analyze the overall assessment for the true tax period, dummy tax period(s) must be worked together.

  2. The ANMF system must be used to request transcripts. A terminal is provided in Accounts Management for this purpose. The ANMF menu contains options to research and request transcripts for:

    1. Currently active accounts under the RESEARCH NMF-RESEARCH/TRANSCRIPT REQUEST options.

    2. Accounts which have been in the closed files (zero balance) for at least one year with no activity under the RESEARCH/TRANSCRIPT REQUEST options.

  3. A user friendly transcript is now available. It is similar to the MFTRAX transcript. When sending transcripts to taxpayers, use the user friendly transcript. Inform taxpayers when sending transcripts that totals are approximate (penalties and/or interest are manually computed for payoff amounts). See IRM 3.17.46.13.2, NMF Account Transcript Requests, for specific information on ordering NMF transcripts.

21.7.12.3.2  (10-01-2008)
Situations Indicating NMF Research May Be Necessary

  1. Besides using ANMF to research cases, CC SUMRY or TXMOD with definer "N" only show when a case has been assigned to the field or correspondence/call is received by a Contact. NMF tax account codes can be found in Section 4 of Document 6209, IRS Processing Codes and Information.

  2. Transaction Code (TC) 130 or a V- freeze can indicate a NMF account is present. (Command Codes (CCs) IMFOLE, BMFOLE or ENMOD display this TC.) A TC 130 in Blocking Series (BS) 200-299 indicates a NMF account.

    1. TC 130 is applied to MF accounts to prevent refunds when there are other balance due accounts present.

    2. TC 130 is generally input by the campus Collection Function and creates a V- Freeze.

    3. TC 130 is followed by a designation number of the campus which input the TC 130; e.g., TC 130:18 is Austin.

  3. Contacts must be alert for inquiries when the taxpayer has received a notice with an "N" after the Taxpayer Identification Number (TIN) or a Document Locator Number (DLN) with a tax class (third digit of DLN) of 6. If so, research NMF. If additional research is needed, the Contact prepares Form 4442 and routes via fax to the following Campus per case type:

    Case Type Campus Fax Number
    Individual Non-Master File Philadelphia 215-516-2825
    Business Non-Master File Cincinnati 859-669-5627
    International Non-Master File Philadelphia 215-516-2825

  4. A TC 300 for .00 posted to a zero balance MF account does not necessarily mean no tax is due. Perform NMF research before giving the taxpayer a complete response.

    1. A zero balance MF account with a TC 400 and an M- freeze could indicate the account was transferred to NMF.

    2. TC 400 can indicate a "false credit" posted to the account to zero out the liability and move the balance to another MF or NMF account.

    3. Perform further research of the BS (9th and 10th digit of DLN). See the table below for possible scenarios.

    TC 400 with a BS of Can Indicate
    00 A transfer from MF to NMF.
    05 An Offer in Compromise, MF to NMF.
    09 A transfer from MF to NMF, but is a special project.
    99 An overflow account necessitating a move to NMF.

  5. Complete Form 12810, Accounts Transfer Request Checklist, to request an assessment be moved from Master File to NMF, NMF to MF. Route to the Cincinnati campus (Credit & Account Transfer Unit). See IRM 21.5.2.4.23.9, Moving Assessments , for further instructions.

21.7.12.4  (10-01-2009)
NMF Procedures

  1. The following subsections contain information on NMF procedures. The information includes procedures for adjustment of NMF accounts and for Contacts receiving calls at the NMF Toll-Free Number.

  2. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, TAS Case Criteria), and you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS, unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.)

21.7.12.4.1  (11-14-2008)
NMF Overassessments

  1. An overassessment (OA) is the portion of the assessment in excess of the correct tax liability. The method of adjusting OA's varies, depending on whether the amount has been paid, or whether the taxpayer is indebted for other accounts.

    Note:

    The amount to be abated is not limited to the outstanding balance on the account, but before issuing a refund or allowing a credit, check to ensure the Refund Statute Expiration Date (RSED) has not expired.

  2. Adjust OA's by:

    1. Abating the OA if the liability is paid or unpaid

    2. Crediting the OA if the liability has been paid, but should be applied to another liability of the same taxpayer for some other tax period or type of tax

    3. Refunding the OA if the liability has been paid and should not be applied as a credit to another liability

  3. When an overassessment is determined, priority for application of the credit is as follows:

    1. Abatement of the outstanding amounts created from the assessment document.

    2. Credit to any other outstanding liabilities for the same taxpayer for any taxable periods. The credit must be applied by the collection statute expiration date. The oldest 23C date must be paid first.

    3. Refund of any excess amount not needed for "a" or "b" in (2) above.

  4. Use one or more of the forms listed below to adjust the account based on a review of the research information received:

    • Form 1331,Notice of Adjustment, if the taxpayer filed a return

    • Form 1331-B,Notice of Adjustment, if the return was not required to be filed

  5. See the Forms Job Aid and instructions for assistance in completing these forms.

  6. Action required:

    1. Prepare abatements for entire amounts of OA's.

    2. Indicate the necessary TCs on the posting copy of Form 1331.

    3. Insert principal and interest in the correct columns, if a payment has been made and a refund is in order.

    4. Enter the appropriate refund line item number (line 10 area on Forms 1331, and Section I area on Forms 1331-B).

    5. Prepare Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (depending on the requirements of the Cincinnati Accounting Function), when the disposition of the OA results in a refund to the taxpayer.

      Reminder:

      All unpaid portions of assessed tax must be abated before any portion of the total OA can be credited or refunded.

      Note:

      Search outstanding MF accounts when an OA involves a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ before completing the allowance document and scheduling the refund.

    6. Route to the Cincinnati Accounting Function.

21.7.12.4.1.1  (10-01-2009)
NMF Husband Only/Wife Only Assessments — Claims Filed

  1. Husband only/Wife only is an assessment determined by Exam which is assessed for the full amount against each spouse. Effective January 1, 2000, Split Assessments are processed to IMF as MFT 31. There are five (5) types of these assessments:

    • Non-petitioning/petitioning spouse & spousal assessments

    • Bankruptcy

    • Innocent spouse

    • Offer in Compromise

    • Agree/disagree (partial assessments)

      Note:

      Exam agreed/disagreed assessments are processed to MFT 31 on Master File.

  2. For detailed information on spousal assessment cases, see IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts. Since September 2004, 18,000 ANMF split assessment accounts (MFT 20), were transferred to MFT 31. The following instructions are for existing non-petitioning spouse and bankruptcy cases:

    1. Control case using MFT 20.

    2. Request a transcript of each account, both husband and wife. Secure the assessment document(s) only when absolutely necessary.

      Note:

      If unreversed TCs 420, 424, 480, 520, 582, or 780 are present, return the request to the originator.

    3. Analyze the account of the spouse whose tax is not being abated to be sure the tax (including all accruals) is full paid.

    If Then
    Full paid Abate the assessment on the other spouse's account using Form 1331B.
    Not full paid Reject the abatement request.

21.7.12.4.1.1.1  (10-01-2008)
Spousal Assessment Transcripts

  1. These are generated to Cincinnati Accounting when a credit transaction (TC 640, 670, or 700) posts to an ANMF account.

  2. Cincinnati NMF Accounting reviews the IMF transcripts before referral to Accounts Management using the conditions below. If all of these conditions are not met, return the transcript(s).

    • A debit balance remains on the other account not containing the credit

    • The amount of tax originally assessed is the same on both accounts

    • Both accounts are in notice status, TDA status, or status 53

    • Either account is not in status 71, 89 or has a posted TC 914

  3. Action required:

    1. Examine the NMF transcripts to determine if the credits on one account, or the combination of credits on both accounts, fully pay the tax, penalty, and interest (including accruals) of the petitioning spouse account. Also, research the Individual Master File On-Line (IMFOLI) for any existing credits which may have been processed to MF in error.

      If Then
      The account is full paid and a credit is located on MF Determine if it was intended for the NMF account and transfer, if appropriate.
      The account is not full paid after combining all credits Take no action and close your control base.

    2. Once the liability has been full paid, abate the non-petitioning or unagreed spouse account using standard NMF abatement procedures. (A non-petitioning or unagreed spouse is one who has either not agreed to the assessment or has not petitioned the tax court.)

      Note:

      Be sure to check the cross reference section of the NMF transcript for any information which will help in resolving the issue. For example, an 870 waiver date (also may be available on IMFOLA), prior refund information, or penalty codes.

    3. If credits exist on the NMF account after all credit transfer and abatement procedures are completed, research for any other Outstanding Balance List (OBL).

      If Then
      Other OBL's exist Apply as necessary.
      No other OBL's exist Prepare Form 3753, Manual Refund Posting Voucher, to refund the credit to the taxpayer. (Be careful not to refund payments made by one to the other. If necessary, pull the payment voucher to determine whose credit it is.)

    4. It is not necessary to release the V- freeze, since Accounting sends a request to Collection to release the freeze once the NMF account becomes zero balance.

21.7.12.4.1.2  (10-01-2008)
NMF Letter 898 (DO) Cases — Claims Filed

  1. When a collecting agent fails to collect tax, or the person liable for the tax refuses to pay, the tax is assessed against the person liable for the tax. See §49.4291-1 of Facilities and Services Excise Taxes Regulations (26 CFR §49.4291-1).

21.7.12.4.1.3  (11-14-2008)
MF Return Posted to NMF

  1. Occasionally, a MF return is erroneously posted as a NMF return. Input these returns to MF as original or amended returns, depending on the information available.

  2. Action required:

    1. Research all related Index Cards if the return was not a balance due.

    2. Request a transcript of the ANMF account.

    3. Prepare Form 1331, Notice of Adjustment, to abate the NMF assessment.

    4. Input a credit transfer using Form 3809, Miscellaneous Adjustment Voucher, to transfer any payment to MF.

    5. Prepare a corrected return and route to MF as non-remit. Staple the NMF return behind it.

21.7.12.4.2  (01-01-2005)
NMF Assessments

  1. Types of NMF assessments include:

    • Current assessments ( See IRM 21.7.12.4.2.1.)

    • Deficiency assessments ( See IRM 21.7.12.4.2.2.)

    • Additional assessments ( See IRM 21.7.12.4.2.3.)

    • Quick Assessments ( See IRM 21.7.12.4.2.4.)

    • Prompt assessments (See IRM 21.7.12.4.2.5.)

    • Jeopardy assessments ( See IRM 21.7.12.4.2.6.)

    • Processing Additional NMF Assessments (See IRM 21.7.12.4.2.7.)

    • Transportation Tax and Communications Tax Assessments ( See IRM 21.7.12.4.2.8.)

  2. Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts, Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies, Form 8725, Excise Tax on Greenmail, and Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests, are assessed on NMF. Additional information on these forms is found later in this section.

21.7.12.4.2.1  (01-01-2005)
Current Assessments

  1. These are assessments of paid or unpaid tax liability, except deficiency or additional assessments resulting from regular examination.

  2. Remittances received with the tax returns are assessed as current assessments, regardless of whether the return is:

    • Full paid

    • Overpaid

    • Part paid

    • Delinquent

    • Tentative

    • Subject to installment privileges

21.7.12.4.2.2  (10-01-2007)
Deficiency Assessments

  1. These are deficiencies in income, estate and gift taxes (including penalty and interest), assessed on the basis of determination made by:

    • Examination findings

    • Appeals findings

    • Tax Court decisions (IMF are being processed to MFT 31)

  2. This category also includes:

    • Transferee assessments

    • Assessments based on remittances received with signed waivers indicating agreement on Examination deficiencies

    • Assessments based on remittances tendered by taxpayers as payments on Examination deficiencies, as opposed to deposits made under IRC Section 6603.

      Note:

      If an undesignated remittance is made in the full amount of a proposed liability, such as an amount proposed in a revenue agent's or examiner's report, the undesignated remittance will be treated as a payment of tax, a notice of deficiency will not be mailed, and the taxpayer will not have the right to petition the Tax Court for a redetermination of the deficiency (Rev. Proc. 2005-18 section 4.03).

21.7.12.4.2.3  (01-01-2005)
Additional Assessments

  1. These are additional taxes, penalties, and interest assessed on employment and excise tax cases. See IRM 21.7.12.4.2.2, Deficiency Assessments, for the description of determinations made by entities and the categories they include.

21.7.12.4.2.4  (01-01-2005)
Quick Assessments

  1. Quick assessments are made to assess:

    • Additional taxes and agreed deficiencies when the statutory period will expire before assessment procedure can be completed under normal processing

    • Deficiencies involving bankruptcy and receivership cases under IRC Sec. 6871

    • Additional and delinquent taxes in bankruptcy cases

21.7.12.4.2.5  (01-01-2005)
Prompt Assessments

  1. Prompt assessments are made on the basis of an administrative determination that an assessment cannot be delayed, but the account does not qualify for a jeopardy or quick assessment.

21.7.12.4.2.6  (01-01-2005)
Jeopardy Assessments

  1. These assessments are made under IRC Sec. 6851, 6861, or 6862. They are made when it is determined collection will be endangered if normal procedures are followed. They include assessments on:

    • Current returns

    • Cases involving termination of taxable periods

    • Deficiencies

    • Additional or delinquent taxes

21.7.12.4.2.7  (11-14-2008)
Processing Additional NMF Assessments

  1. Additional assessment cases are generated from various sources, including Form 3870, Request for Adjustment, Form 3465, Adjustment Request, taxpayer letters, and remittances. Most NMF assessments worked in Accounts Management are additional assessments.

  2. Action required:

    1. Research all necessary Index Cards or request NMF transcripts, if necessary.

    2. Request the return, if filed (if necessary).

    3. Manually compute applicable tax, penalty, and interest.

    4. Prepare a Form 5734, Non-Master File Assessment Voucher, listing the increase in tax, penalty, and interest. (See the Forms Job Aid for assistance in preparing these forms.)

    5. Attach Form 5734 to the front of the return or adjustment document.

21.7.12.4.2.8  (01-04-2007)
Transportation Tax and Communications Tax Assessments

  1. When a person refuses to pay the excise tax on air transportation or a communications service, the airline or communications service provider reports the information to Internal Revenue Service (IRS). A list of these individuals is sent to Accounts Management from Examination and Document Perfection functions.

  2. Action required:

    1. Examine the lists ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ within any given quarterly tax period (January–March, April–June, July–September, October–December). Do not accumulate amounts from one quarter to another.

    2. Prepare Form 5734, Non-Master File Assessment Voucher, for each person identified and attach to the related list. (See the Forms Job Aid for assistance in preparing this form.)

    3. Route Form 5734 to Receipt and Control for numbering. Use MFT 46 and tax class 6.

    4. Route to Cincinnati Accounting for billing, after numbering.

21.7.12.4.3  (10-01-2009)
Taxpayer Inquiry Letters

  1. Analyze the letter to determine proper disposition. Use the table below.

    If Then
    Questions are of a general nature and can be answered by Accounts Management Correspond with or phone the taxpayer.
    Questions concerning the law surrounding a specific IRS assessment (including protest of the assessment) 1. Route to Exam.
    2. Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to advise the taxpayer of the transfer, if routed to Area Office Exam.
    Questions concerning any Alcohol and Tobacco Tax and Trade Bureau (formerly AT&F) forms 1. Forward to:
    Alcohol and Tobacco Tax and Trade Bureau, (TTB)
    Room 8002 FOB
    550 Main Street
    Cincinnati, OH 45202
    ATTN: Chief, Technical Services
    2. Send Letter 86C to advise the taxpayer of the transfer.
    During a taxpayer contact, you determine the case meets TAS criteria, and you cannot resolve the issue the same day (see IRM 13.1.7 , Taxpayer Advocate Service (TAS) Case Criteria)

    Note:

    The following two situations meet the definition of "Same Day Resolution:" The issue can be resolved within 24 hours or the IRS takes steps within 24 hours to resolve the taxpayer's issue.

    		Complete Form 911, Request for Taxpayer Advocate Service Assistance, and refer the taxpayer to the Taxpayer Advocate Service (TAS). See IRM 13.1.7, Taxpayer Advocate Service Case Criteria, or IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines. (The Taxpayer Advocate Service provides assistance to taxpayers who have problems that the IRS has not resolved through normal channels.)

21.7.12.4.4  (10-01-2009)
NMF Toll- Free Number

  1. A toll- free number (1-888-829-7434) now appears on all NMF notices. NMF notices contain an N after the TIN. They can also be identified by a tax class (third digit) of 6 in the DLN. There are three different NMF notices. They are not CP notices, but rather are identified by a form number in the bottom right hand corner. The three notices are listed below.

    1. First notice - Form 6335, First Notice issued on Automated Non Master File

    2. Fourth notice - Form 4840, Final Notice - Delinquent Account. (There are no second or third notices.)

    3. Annual reminder notice - Form 9774, Annual NMF Accrual Reminder Notice

  2. Calls to the number are routed based on the type of call (individual/international/business). Taxpayers are instructed to leave a message and someone will return their call within (3) three business days. Calls are answered during normal day shift hours at each campus. Messages can be left during other hours.

  3. If calls relating to NMF notices are received on a number other than 1-888-829-7434, questions can be answered, if the Contact has the ability and expertise to do so. If not, ask the taxpayer to please call 1-888-829-7434 where a specialist will be available to help. DO NOT REFER CALLS ON OTHER ISSUES TO THIS NUMBER. ALSO, THIS TOLL- FREE NUMBER IS FOR CALLS FROM TAXPAYERS OR TAXPAYER REPRESENTATIVES ONLY.

21.7.12.4.4.1  (10-01-2008)
Procedures for Contacts on Toll- Free Number

  1. The procedures listed below are only for Contacts receiving inquiries on the NMF toll-free Number, 1-888-829-7434.

  2. Contacts should answer all questions for which they have the expertise and/or access to the necessary ANMF data base. If the Contact does not have the expertise to answer NMF questions for the specific case type, or does not have the necessary access to the ANMF data base, prepare Form 4442, Inquiry Referral, with all necessary information and FAX it to the appropriate campus. See IRM 21.7.12.3.2(3) , Situations Indicating NMF Research May Be Necessary, for a list of campuses per type of case.

    Note:

    NMF Notices for EP reference its own toll-free number, 1-877-829-5500.

    1. Apologize to the taxpayer for not being able to answer the inquiry immediately.

    2. Inform the taxpayer he will receive a call from an expert as soon as possible, but no later than 3 business days for all forms except EP forms (within 10 business days for EP forms).

    3. Note at the top of Form 4442"Expedite-NMF-FIRPTA" for international form referrals. Note: "Expedite-NMF-EP" for EP referrals. Note: "Expedite-NMF" for other referrals. (Be sure to include the phone number or phone numbers where the taxpayer can be reached during business hours and the date the call was received.)

      Note:

      If the campus which receives the Form 4442 referral cannot answer the inquiry within the prescribed time frame, a call must be placed to the taxpayer within that time frame informing him of the expected response date.

  3. If any of the situations below are indicated, follow procedures in IRM 5.19, Liability Collection. If a call is received other than the NMF toll-free number, prepare Form 4442 with all the necessary information and FAX it to the Contact at the Cincinnati (BMF) or Philadelphia (IMF and International) campus. The Contact at the campus which receives the Form 4442 is responsible for taking the actions prescribed in IRM 5.19, Liability Collection. (See Note below.)

    1. Inability to pay

    2. Additional time to pay is needed

    3. Installment agreement requested

    4. Bankruptcy

    5. Taxpayer is deceased or incarcerated

    Note:

    If your campus uses local procedures in lieu of IRM 5.19, you can continue to use those local procedures.

  4. Listed below are references for inquiries on specific subjects.

    1. Split Spousal Assessments (MFT 31) - IRM 21.6.8

    2. Employee Plan Accounts – IRM 21.5.11

    3. International forms – IRM 21.8.1,IMF International Adjustments, IRM 21.8.2, BMF International Adjustments, and IRM 21.8.3, NMF International Adjustments

    4. Automated Non-Master File Accounting – IRM 3.17.46

    5. Credit and Account Transfers – Introduction and Scope- IRM 3.17.243.10

    6. Taxpayer Advocate Case Procedures - IRM 13.1

  5. Whenever an adjustment to an account is required, prepare the proper form and route to the Cincinnati campus. See IRM 21.7.12.4.2.7, Processing Additional NMF Assessments, for additional information.

21.7.12.4.5  (01-01-2005)
Stopping NMF Notices

  1. Follow the procedures below to stop NMF notices:

    1. Prepare Form 3177, Notice of Action for Entry on Master File, with TC 470 to notify Cincinnati Accounting to stop notices when an adjustment is pending on any NMF account.

    2. Include the reason to stop notices and the amount of adjustment using the "Other" line of Form 3177.

    3. Include your name and phone number. This information is included in the History section of the NMF account when NMF inputs the TC 470.

21.7.12.4.6  (01-01-2005)
Form 1120-IC-DISC, Interest Charge Domestic International Sale Corporation Return

  1. Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, is processed NMF (MFT 23). In various instances, Accounts Management can be required to:

    • Assess penalties under IRC Section 6686 ( See IRM 21.7.12.4.6.1.)

    • Assess interest under IRC Section 992(c)(2)(B) ( See IRM 21.7.12.4.6.2.)

    • Resolve duplicate filing conditions ( See IRM 21.7.12.4.6.3.)

    • Process amended Forms 8404, Interest Charge on DISC-Related Deferred Tax Liability (See IRM 21.7.12.4.6.4.)

21.7.12.4.6.1  (01-01-2005)
Assessing Penalties, Form 1120-IC-DISC

  1. Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, filers can be liable for penalties assessed under IRC 6686.These penalties apply if the taxpayer fails to provide necessary information or fails to file a return.

  2. The Document Perfection department determines if the corporation is liable for these penalties and routes Form 3465, Adjustment Request, to the Accounts Management department for assessment.

  3. Action required:

    1. Review Form 3465, Adjustment Request, and compute the correct penalty assessment. See IRM 20.1.9, International Penalties.

    2. Prepare Form 5734, Non-Master File Assessment Voucher, to assess the penalty. Enter TC 240 in Item 10 to indicate a penalty assessment.

    3. Enter tax class 6, document code 55, and BS 190–199 as the adjustment DLN and route to the Numbering Function department.

21.7.12.4.6.2  (10-01-2008)
Assessing Interest on Form 1120-IC-DISC, IRC Section 992(c) Distributions

  1. Under certain circumstances, IRC Section 992(c) provides that a corporation that fails to satisfy certain conditions to qualify as a Domestic International Sales Corporation (DISC) for a taxable year specified in section 992(a)(1) can qualify as a DISC for that taxable year if it makes a distribution to its shareholders. If the corporation makes the distribution after the 15th day of the 9th month after the close of the taxable year to which the distribution applies, the corporation must also pay a charge (which is treated as interest) within a 30 day period beginning with the day on which such distribution is made. See IRC Section (920c)(2)(B).

  2. Normally, the Clearing and Deposit department receives a payment and letter from the corporation identifying the payment as interest on a distribution made under IRC 992(c). This letter is sent to Accounting/NMF for preparation of an assessment document.

  3. Action required:

    1. Prepare Form 5734, Non-Master File Assessment Voucher, to assess the payment as interest using TC 340.

    2. Research the Index Cards and the ANMF data base for the DLN of the latest Form 1120 series return filed by the corporation and request the return.

    3. Send the letter and return to the Exam Classification department. Note on the routing slip that the taxpayer is claiming benefits of IRC Section 992(c), the amount of interest assessed, and the date the payment was received.

    4. Route Form 5734 to Accounting for billing.

    Note:

    If the original return is charged out to Exam, notate the routing slip with the same information in 3) above, and send the letter to the area where the return is charged.

21.7.12.4.6.3  (10-01-2009)
Processing Form 1120-IC-DISC Duplicate Filing Conditions

  1. When a return marked "amended" or "duplicate" is found in the Processing department, it is sent to the Accounts Management department without being numbered.

  2. Action required:

    1. Secure the original return, if not attached, using the DLN from Form 1120-IC-DISC, Alpha Index File, located in Files Function.

    2. Attach the amended return to the original return and send them to the Exam Classifier. (Form 1120-IC-DISC is nontaxable but is considered Exam criteria.)

    3. Line through "amended" or "duplicate " and input as the original, if there is no record of an original return being filed.

21.7.12.4.6.4  (11-14-2008)
Additional Assessment or Claim on Form 8404, Interest Charge on DISC - Related Deferred Tax Liability

  1. A DISC shareholder may defer a portion of its income attributable to DISC activities by paying, in the manner described in IRC Section 992(c)(2)B. Certain interest is charged based on the amount of tax postponed. The assessment of the interest is made via NMF when Form 8404, Interest Charge on DISC-Related Deferred Tax Liability, is filed.

  2. If the shareholder underpays the interest as a result of an audit adjustment, amended return, carryback, etc., or because the original amount reported was based on an estimate or any other reason, the shareholder must file an amended Form 8404 to increase the assessment. Route all Forms 8404 to Cincinnati Accounting for assessment.

  3. If the shareholder overpays the interest, Form 843, Claim For Refund and Request for Abatement , should be filed to claim the overpayment. Action required:

    1. Request the original Form 8404.

    2. Compute the amount by which interest will be decreased using the information on the Form 843. Refer to IRM 20.2, Interest, for methods of computing interest.

    3. Prepare Form 1331, Notice of Adjustment, noting the reason for the decease in interest.

    4. Route to Cincinnati Accounting.

21.7.12.4.7  (10-01-2008)
Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts

  1. Prior to January 1, 2005, all Forms 8697 and Forms 8866 were processed on NMF. Effective January 1, 2005, these forms are processed on Master File as BMF or IMF for Form 1120 and Form 1040. Effective in July 2005, Forms 8697 related to Form 1041 and Form 1065 are processed on Master File. When working these cases, both IDRS and NMF must be researched.

  2. Form 8697, Interest Computation Under the Look-back Method for Completed Long-Term Contract, must be filed for each tax year in which the taxpayer completed a long-term contract entered into after February 28, 1986, that is accounted for using either the percentage of completion method or the percentage of completion-capitalized cost method for federal income tax purposes.

  3. Taxpayers must also file Form 8697 for any tax year in which the contract price or contract costs are adjusted for one or more of these long-term contracts.

21.7.12.4.7.1  (10-01-2009)
Completing Form 8697

  1. The look-back method is the process used to determine the interest underpayment/overpayment due on the income allocated over the taxable years of the contract when the estimated contract price and costs during the contract period are compared against the actual contract price and costs determined when the contract is completed.

  2. Taxpayers complete either Part I, Regular Method, or Part II, Simplified Marginal Impact Method, of Form 8697.

  3. In Part I, Regular Method, the amount due or to be refunded is computed by applying the actual tax rate for the particular prior year(s) against the revised taxable income.

  4. In Part II, Simplified Marginal Impact Method, an assumed marginal tax rate is applied to the difference between the estimated and actual contract price and costs. Generally, this tax rate is the highest statutory tax rate in effect for the particular prior year(s). The tax rates for Part II computations are listed in the instructions for Form 8697.

  5. Generally, Form 8697 must be filed by an individual, corporation, estate, or trust. It is used to figure the interest due, or to be refunded, under the look-back method of IRC 460(b)(2) on certain long-term contracts.

21.7.12.4.7.2  (10-01-2009)
Treatment of Interest

  1. IRC 460(b)(1) provides that any interest required to be paid by the taxpayer is treated as an increase in tax imposed for the taxable year in which the contract is completed. The due date for Form 8697 is the same date that the related income tax return is due, including extensions.

  2. If the taxpayer owes interest, or if no interest is to be refunded to the taxpayer, the taxpayer is directed to include any interest due in the bottom margin of the tax return and attach a check or money order for the full amount payable to the "United States Treasury" . See IRM 20.2.8.11, Look Back Method (NMF), for additional information.

21.7.12.4.7.3  (01-01-2007)
Forms 8697/8866 Interest

  1. If interest is to be refunded, taxpayers are instructed not to attach Form 8697 to their return. This should be filed separately with the IRS at one of the addresses below.

    Individual filers
    Internal Revenue Service
    Philadelphia, PA 19255-0001
    All other filers Internal Revenue Service Cincinnati, OH 45999-0001

  2. Look-back interest owed to the taxpayer is not treated as an overpayment because it is not interest that has been paid. A look-back interest refund is not a tax return or claim for refund. It is a non-tax claim against the government to which IRC 6511 does not apply. The 45-day interest free processing rule under IRC 6611 is not applicable to look-back interest refunds. Interest the taxpayer receives under the look-back method is treated as taxable income. It is not a reduction in tax liability.

21.7.12.4.8  (01-01-2007)
Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method

  1. Form 8866, Interest Computation under the look-back method for Property Depreciated under the Income Forecast Method, is a form similar to Form 8697. It is almost identical to the Part I, Regular Method, on Form 8697.

  2. Follow all procedures for Form 8697 processing when a Form 8866 is received.

  3. As with Form 8697, the taxpayer is instructed to file Form 8866 with the appropriate income tax return, if additional interest is owed. If the taxpayer is due a refund, Form 8866 should be filed separately.

  4. Prior to January 1, 2005, Forms 8697 and Forms 8866 that claimed look-back interest were processed under Non-Master File with the interest issued using "manual refund" procedures. Effective January 1, 2005, look-back interest adjustments are processed under Master File and posted to the applicable income tax return for the taxpayer required to file Form 8697/8866.

  5. If interest is due to the IRS, the taxpayer files Form 8697 or Form 8866 with the related income tax return. Balance due Forms 8697/8866 are not filed separately. The amount due is included in the "total tax" (TC 150) line. Therefore, full paid (or for zero amount) originals are filed as an attachment to the related income tax return.

21.7.12.4.8.1  (01-01-2007)
Forms 8697/8866 IDRS Codes

  1. Computer Condition Code (CCC) K is used to indicate that a Form 8697/8866 was attached to an original Form 1120. The CCC K is not edited on an amended Form 1120, Form 1120X, or any other income tax return. Prior to January 1, 2005, separately filed balance due Forms 8697 or 8866, that were inadvertently detached from the related income tax return, may have been processed under Non-Master File (NMF) procedures resulting in possible duplicate assessments. Research of Master File and Non-Master File transactions are performed to reverse any duplicate assessment on NMF.

  2. Effective January 1, 2005, Master File processing of refunds of look-back interest is accomplished by using Reference Number 251. Input of Reference Number 251 and the applicable amount of look-back interest generates a TC 766 to process the credit. Interest computed on the look-back interest amount is calculated at the credit rate from the return due date of the applicable income tax return and is input with TC 770.

  3. When it is determined that look-back interest from a balance due Form 8697/8866 was not included on the return, the look-back interest amount is assessed by input of TC 290 with Master File assessing debit interest, TC 196 on the look-back interest amount. If interest is restricted on the module, compute interest on the TC 290 look-back interest amount and input TC 340. Do not input credit reference number 251 with the adjustment.

21.7.12.4.9  (01-01-2005)
Child Support Obligation

  1. Section 6305 authorizes IRS to assess and collect child support payments ordered by state courts, but which have fallen into arrears. When certified by the Secretary of Health and Human Services, the arrearage is treated as taxes collectible.

  2. The assessment is processed to NMF on MFT 59.

  3. A first notice and Letter 753(C), Child Support Payments Assessed (NMF), are prepared to inform the taxpayer of the reason for the assessment. It advises the taxpayer to contact the State Child Support Collection Office if there are questions regarding the assessment.

  4. Any decrease to the original assessment must be initiated by the originating state office. IRM 3.17.46, Automated Non-Master File Accounting, contains detailed information and procedures.

21.7.12.4.10  (01-01-2005)
NMF Civil Penalty Assessment

  1. Joint civil penalty assessments must be processed on NMF since MF civil penalty modules (MFT 13 or 55) cannot accommodate joint liabilities. These modules appear as MFT 28 on NMF. The reason can be identified by the abstract number. See IRM 3.17.46, Automated Non-Master File Accounting, for more information and procedures.

21.7.12.4.11  (01-01-2005)
Forms 8612 and 8613 Processing

  1. Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts (REITs), is used by a REIT to compute and pay the excise tax on undistributed income imposed under IRC 4981.

  2. Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies (RICs), is used by a RIC to compute and pay the excise tax on undistributed income under IRC 4982.

  3. REITs and RICs are required to distribute a certain percentage of their ordinary income (taxable income) and their capital gain net income to their shareholders. The 4% excise tax is applied against the excess of the required distributions (line 4) minus the actual distributed amounts (line 8).

  4. Forms 8612 and 8613 are due by March 15 following the calendar year to which the excise tax liability applies. They are subject to late filing and payment penalties. Refer to IRM 20.1.2, Failure to File/Failure to Pay Penalties. An extension of time to file can be requested by filing Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, by the return due date.

  5. Both forms are processed on NMF. Follow normal NMF procedures for any adjustments required.

    • Form 8612 is MFT 89, document code 21, tax class 6.

    • Form 8613 is MFT 14, document code 22, tax class 6.

21.7.12.4.12  (01-01-2005)
Form 8725, Excise Tax on Greenmail

  1. Form 8725, Excise Tax on Greenmail, is used to report and pay the 50% excise tax imposed under IRC 5881. The term "greenmail" means any amount a corporation (or any person acting in concert with a corporation) pays to a shareholder to directly or indirectly acquire its stock if:

    1. The shareholder held the stock for less than two years before entering into the agreement to make the transfer of stock.

    2. The shareholder (or any person acting in concert with, or related to, the shareholder) made or threatened to make a public tender offer for stock of the corporation, at some time during the two year period ending on the date of acquisition.

    3. The acquisition was made under an offer that was not made on the same terms to all shareholders.

  2. Form 8725 is due by the 90th day following receipt of any portion of the greenmail. (A separate Form 8725 must be filed for each agreement to transfer stock.) It is subject to late filing and payment penalties. Refer to IRM 20.1.2, Failure to File/Failure to Pay Penalties. An extension of time to file can be requested by filing Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, by the return due date.

  3. The amount of (excise) tax due (line 6) is a flat 50% of the total gain or other income (line 5).

  4. The tax period is the "Date of initial receipt of greenmail" listed at the top of Form 8725. For example, if the taxpayer enters November 2007, the tax period is 200711.

  5. Form 8725 can be filed under either an EIN or SSN, depending on the type of entity filing the return. Returns are processed NMF. Follow normal NMF procedures for any adjustments required.

    • MFT 27

    • Document code 21

    • Tax class 6

21.7.12.4.13  (10-01-2008)
Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests

  1. Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests, is used to report and pay excise taxes on any transfer of a residual interest in a REMIC to a disqualified organization, or any transfer of a residual interest in a pass-through entity.

  2. The due date of the return is based on the portion of the return required to be completed by the taxpayer.

    If ... Then ...
    Sections B or C are completed The due date is April 15 of the year following the calendar year in which the residual trust is transferred to a disqualified organization.
    Part II is completed The due date is the 15th day of the 4th month following the close of the tax year of the pass-through entity.

  3. An extension of time to file can be requested by filing Form 7004,Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.

  4. Forms 8831 are processed NMF as:

    • MFT 89

    • Document code 21

    • Tax class 6

    • Abstract number 221

    • BS 000 – 399 without remittance, 400 - 499 with remittance

  5. All refund claims, amended returns, or claims requiring penalty computations are routed to Accounts Management. Follow normal NMF procedures for any adjustments required. Forms 8831 are subject to late filing and late payment penalties. Refer to IRM 20.1.2,Failure to File/Failure to Pay Penalties.

  6. When correspondence or a telephone call from the taxpayer is received on Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests, for Resolution Trust Corporation Receivership (RTC) cases, be certain the first notice was generated to the taxpayer (either the original first notice, if no amended return, or the first notice after an amended return was processed). Then prepare Form 3177, Notice of Action for Entry on Master File, and forward for input of TC 530 Closing Code (CC) 15 to the Cincinnati Accounting NMF Unit. (Per an Inter-Agency agreement between IRS and the FDIC, no annual reminder notice is required.)

21.7.12.4.14  (10-02-2008)
Procedures for Individual Taxpayer NMF Accounts Of $100 Million or More - Overview

  1. Due to IDRS/Master File limitations, Form 1040, U.S. Individual Income Tax Returns, with taxes or payments of $100 million or more must be processed on the ANMF. To provide this group of taxpayers the same level of service as other customers, a centralized team of contact representatives was established in the Philadelphia campus in November 2006. This team of representatives is considered the liaison for these taxpayers.

  2. If an inquiry is received from taxpayers with taxes or payments of $100 million or more, provide the taxpayer with the telephone number and hours of the team and complete Form 4442. See IRM 21.7.12.4.14(3) for telephone number and hours. Send Form 4442 to the Philadelphia campus at the address below:

    Internal Revenue Service
    P. O. Box 21135
    Technical Unit - DP 351 N
    Philadelphia, PA 19114

  3. Taxpayers and/or their authorized representatives can contact 215-516-7248 (not toll-free) between 8:00 AM and 4:00 PM Eastern Standard Time, Monday through Friday to speak to one of the team members.

  4. Original returns, amended returns ( Forms 1040X), Forms 8802, Application for United States Residency Certification, Forms 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, and other related correspondence are received at the address above.

  5. This team conducts the following:

    • Locates and applies payments

    • Provides IRS communications

    • Secures taxpayer income verification

    • Secures transcripts of taxpayer accounts

    • Provides general guidance

    • Resolves account problems, and

    • Transfers payments between MF and NMF, etc.

    Caution:

    Joint Committee Cases (JCC) must be expedited to Examination due to interest consideration, if over $2,000,000.00 (aggregate).

21.7.12.4.14.1  (01-04-2007)
Types of Work Received - Paper

  1. Once mail is received in the Technical Unit, it is sorted by categories:

    • Original Return without Remittance

    • Original Return with Remittance

    • Amended return and/or Form 1040X without remittance

    • Amended return and/or Form 1040X with remittance

    • Form 8802, Application for United States Residency Certification, with remittance after November 1, 2006, postmark

  2. The types of work and instructions for these CSR's are provided in the following subsections.

21.7.12.4.14.1.1  (10-01-2008)
Original Return without Remittance

  1. Take the following action on original return received without remittance:

    1. Date stamp the return.

    2. Update log to indicate Name, SSN, Tax year, etc., and make a copy of return.

    3. Open control base on 0537120020.

    4. Review IDRS for payments on MF and/or notices on primary and/or secondary SSNs.

    5. Input TC 594 CC 84 on spousal MF.

    6. Input TC 971 with Action Code 502 on ENMOD.

      Note:

      TC 971 with Action Code 502 indicates a case of $100 million or more on NMF.

  2. Take the following action, if the return shows an overpayment:

    If ... Then ...
    Refund is requested Prepare Form 3753, Manual Refund Posting Voucher, with authorized signature.

    Note:

    If the 45-day interest free rule is in jeopardy, EXPEDITE to Cincinnati NMF. Refunds of $100 million or more must have prior approval from Examination.

    Payment are located on Master File (MF) Prepare all documents needed to transfer payments, credit elects, etc., from MF to NMF accounts and input history on MF to show moving credit to NMF. Make a special note to NMF that all credits have been verified and credits are being transferred from MF. Annotate the account "Taxpayer is NOT to be billed."
    Credit elect is requested and under $100 million Prepare Form 3809, Miscellaneous Adjustment Voucher, to transfer from the current NMF to MF for the next year.
    Credit elect requested is $100 million or more Prepare Form 3809, Miscellaneous Adjustment Voucher, to transfer credit elect to NMF. Input history on MF to indicate credit elect on ANMF

  3. If credit amounts are insufficient, indicate correct amount of bill to be issued to taxpayer.

  4. Complete Form 3210, Document Transmittal, for all original returns and overnight/express mail to Cincinnati ANMF.

21.7.12.4.14.1.2  (01-04-2007)
Original Return With Remittance

  1. Date stamp original return.

  2. Prepare Form 3210, Document Transmittal, and hand walk payment to campus Support.

  3. Follow the same steps for original return without remittance as previously provided in IRM 21.7.12.4.14.1.1, Original Return without Remittance.

21.7.12.4.14.1.3  (10-01-2008)
Amended Return Without Remittance on ANMF

  1. Amended return received without remittance. Take the following actions:

    1. Date stamp return.

    2. Log in request on High Profile Taxpayer data file.

    3. Check MF for any payments or balances.

    4. Check MF for TC594 CC84 on spousal SSN.

    5. Check for TC 971 with Action Code 502 on ENMOD.

    6. Open control base on ENMOD under 0537120020.

    7. Verify POA, if necessary.

    8. Prepare adjustment request.

    9. Transfer payment from MF and note "Bill to Taxpayer" , if the adjustment results in a balance due.

  2. The adjustment results in an overpayment, See IRM 21.7.12.4.14.1.1(2) table.

21.7.12.4.14.1.4  (10-01-2008)
Amended Return with Remittance on ANMF

  1. Take the following action, if the return is received with remittance:

    1. Date stamp return.

    2. Log in request on High Profile TXPR data file.

    3. Complete Form 3210, Document Transmittal, and hand carry payment to campus Support.

    4. Check MF for any payments/open balances.

    5. Check MF for TC594 CC84 on spousal SSN.

    6. Check for TC 971 with Action Code 502 on ENMOD.

    7. Open control base on ENMOD under 0537120020.

    8. Verify POA, if necessary.

    9. Prepare adjustment request.

    10. Transfer payment from MF and note "Bill to Taxpayer" , if the adjustment results in a balance due.

  2. If the adjustment results in an overpayment, See IRM 21.7.12.4.14.1.1(2) table.

21.7.12.4.14.1.5  (10-01-2008)
Form 8802, Application for United States Residency Certification, with Remittance

  1. Take the following action when Form 8802, Application for United States Residency Certification, is received with remit:

    1. Date stamp form.

    2. Log in request to High Profile Taxpayer (TXPR) data file.

    3. Verify tax return was filed for Tax year (TXYR) requested.

    4. Obtain transcript from ANMF system.

    5. Make note on Form 8802 if return posted, but not on MF, return posted on MF, or return was not posted on either system.

    6. Add "High Profile Taxpayer" on the bottom of page 1 on Form 8802.

    7. Make a copy of Form 8802.

    8. Prepare Form 3210, Document Transmittal, and hand walk both copies of Form 8802 along with any supporting documents/information, to U.S. Certs Team Clerical Manager for transfer of check to lockbox.

21.7.12.4.14.1.6  (10-01-2009)
Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return)

  1. If Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, is received:

    • Date stamp form.

    • Input TC 460 on MF using Command Code REQ77 to indicate an extension was received. See IDRS Command Codes Job Aid for proper input of the transaction code, extension date, transaction date, and DLN code.

21.7.12.4.14.1.7  (10-01-2008)
Other Correspondence

  1. Take the following action for other correspondence:

    1. Date stamp correspondence.

    2. Open control base on ENMOD under 0531720020.

    3. Check POA, if necessary.

    4. Review for issues, then phone/write and make appropriate adjustments.

    5. Check MF for open balances/payments and check ANMF for same.

    6. Check for open control bases on MF.

    7. Check for TC 594 CC 84 on spousal SSN.

    8. Check for TC 971 with Action Code 502 on ENMOD.

    9. Prepare Form 4442, Inquiry Referral, to refer to Cincinnati ANMF (if needed).

21.7.12.4.14.1.8  (10-01-2009)
Taxpayer Advocate Service (TAS) Cases Operations Assistance Requests(OAR)

  1. Take the following action on an OAR received from the Taxpayer Advocate:

    1. Date stamp OAR.

    2. Log in request for TAS database and High Profile Taxpayer data file.

    3. Review for issues.

    4. Adjust account/phone taxpayer or POA, etc.

    5. Open control base on ENMOD under 0531720020.

    6. Check for payments/balance dues under MF and ANMF.

    7. Check for TC594 CC84 on spousal SSN.

    8. Check for TC 971 with Action Code 502 on ENMOD.

    9. Return OAR to TAS.

    10. Prepare Form 4442, Inquiry Referral, to Cincinnati ANMF, if needed, and log out of TAS database when completed.

      Note:

      If sending Form 4442 to Cincinnati ANMF, inform TAS on the OAR of action taken.

21.7.12.4.14.2  (01-04-2007)
Types of Work Received - Telephone

  1. If telephone calls are received from taxpayers with accounts over $100 million on NMF, follow the procedures in the following subsections.

21.7.12.4.14.2.1  (10-01-2009)
Telephone Calls from Power of Attorneys (POA) or Taxpayer

  1. Take the following action on calls received from POA or Taxpayer:

    1. Verify POA on IDRS.

    2. Review issue/request transcript from ANMF.

    3. Review MF for issue and check for TC594 CC84 on spousal SSN.

    4. Check for TC 971 with Action Code 502 on ENMOD.

    5. Complete Form 4442, Inquiry Referral, if needed, to refer to Philadelphia ANMF.

21.7.12.4.14.2.2  (01-04-2007)
Telephone Calls to POA or Taxpayer

  1. Take the following action on calls to POA and Taxpayer:

    1. Verify the POA on IDRS.

    2. Make two (2) attempts to reach caller. (This is mandatory.)

    3. Follow the IRM 21.3.10.7, Returning Calls to Practitioners, guidelines.

21.7.12.4.14.2.3  (10-01-2009)
Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests

  1. This form was created because of a tax provision in Division C, Title IV, section 403(c) of the Tax Relief and Health Care Act of 2006 entitled "Tax Incentive For Sale Of Existing Mineral And Geothermal Rights To Tax-Exempt Entities" .

  2. It is anticipated Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests, will be processed to NMF. However, processing has not been finalized. As soon as more information is available, an IRM Procedural Update will be issued.


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