IRS Audits - Part 4 Examining Process

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IRS Audits

Chapter 4. AIMS Processing

Section 35. Unpostable Resolution (Cont. 1)

4.4.35  Unpostable Resolution (Cont. 1)

4.4.35.15 
Unpostable Command Codes

4.4.35.15.3  (02-08-1999)
UPCAS

  1. Is valid for all Master Files and may be used by Unpostables, Entity Control, Examination, Criminal Investigation and Statutes to automatically request a MRS transcript for the unpostable record and/or request a document or return and/or place or update a case in suspense status.

    Note:

    GUF will also automatically close the case using URC 8 when Definer "D" with Definer-Modifier "4" (4th request) is input.

     

  2. GUF will display an error message when requesting a 1st, 2nd, or 3rd (e.g. 2nd request previously requested), if attempting to request a 1st, 2nd, or 3rd request previously made.

    Note:

    A 4th request is not valid for a TC 98X, IRAF TC 150 cases, Doc Code 45 with a DLN Tax Class 9, and certain BMF tax period, MFT, and tax class combinations.

     

4.4.35.15.4  (02-08-1999)
UPDIS

  1. It is valid for all Master Files and will be used to display the unpostable record.

    Note:

    CC-UPRES will be the screen display shown.

     

  2. Other areas may contact Unpostables and request specific processing of an unpostable record that has not been closed and removed from the SCUPMF for posting at Master File (MCC).

4.4.35.15.5  (02-08-1999)
UPRES

  1. It is valid for all Master Files and it may be used by Unpostables, Entity Control, Examination, Criminal Investigation and Statutes for SERVICE CENTER, UNIT, or INDIVIDUAL case closures, and by Unpostables for FILES type unpostable case closures.

  2. CC UPDIS is used to retrieve the CCUPRES screen format.

  3. Correct input of CC–UPRES with definers, A, D, 0, 1, 2, 5, 6, and 8 will close an unpostable case.

  4. These closed cases will be removed from the SCUPMF if the case meets the unpostable activity, status, and update code reject processing criteria.

  5. Cases failing this criteria are placed on a "reject" list.

  6. CC-UPRES may also be used to correct an erroneous prior case closure if the case is still on the SCUPMF in (C) "closed" status.

  7. It will also display a message "Other cases with the same TIN on UPTIN" , if there are other cases on CC UPTIN with the same TIN as the unpostable document.

  8. GUF will display an error message "The same TIN may not be used" if the case was corrected, using URC 6, with the same TIN as the Unpostable TIN.

  9. GUF will display an error message "SSN must be greater than 001010000" , if the attempted TIN correction is not greater than 001–01–0000.

  10. GUF will display an error message "Invalid Tax Period" , if attempting to input a tax period change that is greater than current year and month plus one year.

  11. GUF will use OLE NAP/LAP to validate the name and TIN on all URC 6 corrections and specific UPCs for URC O closures (see 3(12) (32)8.5 or the UPCs).

  12. The CC UPCAS Screen format has tab stops for the nullification code, cycling and all correction fields.

  13. The name line is not needed when correcting spouse's SSN on EC 105.

4.4.35.15.6  (02-08-1999)
UPREV

  1. It is valid for use in the Unpostable, Entity Control, Examination, Criminal Investigation and Statute functions only by the supervisor (or designated employee) for 100% case review, on-the-job training (OJT), and/or deletion of processing errors on CC-UPRES identified prior to closed case release to Quality Review.

  2. Used by Quality Review to review the accuracy and completeness of corrected (closed) unpostable records which are still on the SCUPMF. Applies only to the review of CC-UPRES (definers A, D, 0, 1, 2, 5, 6, and 8) closures and CC-UPBAT cases in closed status. CC-UPREV with definer "E" modifier "blank" may be used by the input area to delete an erroneous CC-UPBAT or CC-UPRES case closure which is still on the SCUPMF in "closed" status.

4.4.35.15.7  (02-08-1999)
UPTIN

  1. It displays all open and three months of closed unpostable cases for a specific TIN.

  2. Each unpostable record will be sorted in ascending order by TIN, MFT, Tax Period and Transaction Code.

  3. CC UPTIN will be updated daily.

4.4.35.16  (02-08-1999)
Command Code Definers and Definer-Modifiers

  1. These definers and definer-modifiers identify which specific action is to be taken by each command code.

  2. Valid unpostable Command Code definers and definer-modifiers are listed in IRM 3.12.32.

4.4.35.16.1  (02-08-1999)
Command Code Definer

  1. Used to define the related Command Code.

4.4.35.16.2  (02-08-1999)
Command Code Definer-Modifier

  1. Used to further modify the related Command Code.

4.4.35.17  (02-08-1999)
Nullification Codes

  1. Whenever closing an unpostable with URC 1, 2, or 8, a nullification code must be entered to identify the receiving area for closed unpostables. Nullification listings will be printed for each of these areas based on nullification code used.

    1. Any cases being routed to the Return Analysis/Code & Edit area should be given Nullification Code 02—Adjustments.

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

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

    4. A Nullification code is not needed for URC D.

    5. IRM 4.4.35–4, Nullification Codes, lists all the codes.

     

4.4.35.18  (02-08-1999)
Accessing the GUF

  1. Authorized Access—GUF users are authorized to access only those accounts required to accomplish their official duties. GUF users must not access their own or spouse's account, the account of a friend, relative or co-worker, or any account in which they have a personal financial interest.

  2. Protection of the GUF User Employee—It is essential that only properly authorized employees have access to command codes since the GUF IDRS terminals can be used to change taxpayers' accounts. It is equally important that employees be protected from other personnel using their identification since the only record of the employee making the change will be computer generated from the entry code input by the operator. Proper use of Command Codes SINON and SINOF will provide protection to the employee. However, employees must properly safeguard both their password and entry code in order to obtain the benefits of the system. Also the GUF command codes should be authorized only for employees requiring access to unpostable records to assign, close, suspense, display and/or review unpostable cases.

  3. ACCESSING THE GUF VIA IDRS—The GUF is accessed by the command codes UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES, and UPREV once the employee has signed on IDRS using their IDRS password. Once signed on IDRS an employee may access the GUF, IDRS and/or MRS if these system command codes are in the employee's profile of authorized actions on the terminal.

4.4.35.19  (02-08-1999)
Unpostable Status Codes, and Dates

  1. The use of Command Codes UPDIS, UPASG, UPBAT, UPCAS, UPRES, UPREV, and UPTIN and the related command code definers and modifiers set, display, and/or update the "STATUS DATE" and/or "STATUS DATE" of an unpostable record. The status code identifies what action has been taken for an unpostable case; the status date indicates when this action was taken. These command codes and status codes establish and maintain case control of all unpostable records on the SCUPMF.

  2. The command codes, definers, and modifiers result in status code changes are as follows (these status code changes and updates are based on a valid command code request):

    1. "A" —Command Code UPASG, definer is B, or R and modifier is blank; or Command Code UPREV with definer E, and modifier is blank

    2. "C" —Command Code UPRES with definers A, B, D, 0, 1, 2, 5, 6, and 8, and Command Code UPBAT and UPCAS definer D with modifier 4, (closed cases still on the SCUPMF) . Unpostable case have not yet been removed from the SCUPMF.

      Note:

      URC "B" is not an input resolution closure. URC "B" is for "Special Closures" only. "H" —Command Code UPREV with definer H modifier "Blank" (one case) will hold a case (for an employee assignment number) from being released off the SCUPMF and sets status code H.

       

      Note:

      Definer "Z" modifier "Blank" with CC–UPREV (holds all cases) does not set status code H. Definer "Y" modifier "Blank" CC–UPREV (holds all cases for the day, for a particular employee) does not set status code H. These hold the case for up to 7 days. On the eighth day GUF will close case.

       

    3. "S" —Command Code UPCAs with definer D, M, and S, with modifiers A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, 1, 2, 3, case held in suspense on the SCUPMF and status code S set.

    4. "Q" —Command Code UPREV with a “Blank” command code definer and modifier; accepted closed case still on the SCUPMF, status code “Q” is set.

     

4.4.35.20  (02-08-1999)
IDRS Case Control

  1. Anytime a case is closed with URC 2, IDRS will open a control base to the employee who input the transaction originally or to a specified designated area

    Note:

    If the control base is opened to other than the employee who input the transaction originally, the employee number used will be the last employee number organization within that particular range (i.e. Adjustments range is 575–649, the control base will be opened to xx64900000.).

     

  2. An IDRS control base will not be opened if,

    1. The transaction is for a Doc Code 47,

    2. The employee number is not significant or invalid and/or falls within Nullify—Area Codes 11, 13, 22, or 42.

    3. The case was closed with URC D.

     

  3. Unpostables will route the case, if in their possession, and the Nullified Distribution Listing to the area responsible for the next action.

  4. These areas will be responsible for re-analyzing and remaking the transaction if necessary and closing the IDRS control base.

4.4.35.21  (02-08-1999)
IDRS Unpostable Case Control

  1. It is not necessary to control a module with an unpostable record on IDRS except as follows.

4.4.35.21.1  (02-08-1999)
First Condition

  1. The unpostable record is a TC 150 that meets all of the following conditions:

4.4.35.21.1.1  (02-08-1999)
Return Not In

  1. The return is not in;

    1. Category A–1, Criminal Investigation case;

    2. Category B–1, Entity Control case; or

    3. Category Z–1, Bankruptcy

     

4.4.35.21.1.2  (02-08-1999)
Return Will Not Be Resolved Within 6 Weeks

  1. The return has not or will not be resolved (closed) within six weeks of receipt (case still on the SCUPMF) . Use the Unpostable cycle sequence number to determine the receipt date of the unpostable return, and;

4.4.35.21.1.3  (02-08-1999)
Return Not Controlled or on IDRS CCTXMOD

  1. The return is not already controlled and/or shown on IDRS CC–TXMOD as an open unpostable. Unpostable records are identified as a "U" followed by the specific unpostable code, (i.e., U313, U175, U189, or U803).

4.4.35.21.2  (02-08-1999)
Second Condition

  1. Any open unpostable record that is still on the SCUPMF, if the PRP, Technical or Area Office functions:

    1. Request the case be placed under IDRS control; or they

    2. Request the addition or update of a CC–TXMOD history item for an unpostable case already controlled (shown) on IDRS.

     

  2. Third Condition—A specific unpostable code procedure in IRM 3.12.179 or IRM 3.12.166 requires IDRS case control, and the open case is still on the SCUPMF.

4.4.35.22  (02-08-1999)
Offsets and Transfers

  1. When an unpostable payment is identified as belonging to a different tax module, post the payment to the correct module. Do not rely on the computer to offset the payment because IRAF does not computer offset between modules.

  2. A transfer voucher is used to transfer money from one tax module to another or between master files. The type of transfer voucher used depends on the type of transfer being made. Each voucher has unique document codes and only certain transaction codes are valid for a specific document code.

    1. Form 2424 Voucher-Document Code 24 is used to transfer credits from one account to another or between master files or when a secondary TC is needed.

    2. The debit and credit portions post separately.

    3. Form 3809 Voucher-Document Code 48 is used to transfer an overpayment credit elect, a refund repayment, a substantiated credit allowance or a withholding credit. A secondary TC may also be used.

    4. Form 3809 Voucher-Document Code 58 is used to transfer credits to a Special Account, such as 5701, 5706 or 2000.

     

  3. Use the following guidelines when resolving unpostable voucher transactions:

    1. Keep in mind the preparer's intent.

    2. Do not change money amounts.

    3. Do not change the first digit of the transaction code to or from an 8.

    4. Do not change the third digit of a reversal transaction code.

    5. Locate the opposite portion of the unpostable transfer voucher with Document Codes 24, 48 and 58 for resolution.

    6. When the document code and transaction code are incompatible, nullify and route the document to Data Controls to be renumbered with the correct document code.

    7. If a document related to the unpostable voucher is also unpostable, make every attempt to secure the document.

    8. Any portion of a posted amount can be reversed.

    9. If both sides of a document code 24, 48 or 58 transfer voucher are unpostable and an identical previous transaction (debit/credit) has posted, reject (URC 8) both portions and route them together to Rejects for deletion.

    10. When transferring a module balance (TC 820) a specific transaction date is not necessary.

     

4.4.35.23  (02-08-1999)
Unpostable Listings, Reports, and Forms 4251

  1. Following is information on the unpostable listings, reports and Forms 4251.

4.4.35.23.1  (02-08-1999)
General Information

  1. Several different reports and listings are produced by the GUF. These reports, listings, and Forms 4251 are used to identify, control, pull documents and close the unpostable cases. IRM 3.12.32 contains samples of all the reports and listings generated by the GUF system. The listings and reports most frequently used by Examination Perfection function employees are as follows:

    1. Forms 4251, Return Charge-Out, Unpostable Request Summary Report.

    2. UP Employee Assignment/Aged List (GUF–55–40).

    3. New Unpostable Reports and Summary Report (GUF–11–40).

    4. Unpostable Rejected Activity List (GUF–21–02).

    5. Unpostables Closed Case List—Employee and Summary Listings (GUF–21–03).

    6. Unpostable Workload Report (GUF–53–41).

    7. Unpostable Case Assignment List—Daily Employee W Workload Listings (GUF–21–40).

    8. Unpostable Inventory Report (GUF–55–43).

    9. Nullified Distribution List (GUF–55–47).

     

4.4.35.23.2  (02-08-1999)
Form 4251, Return Charge-Out

  1. The GUF automatically generates Forms 4251 for unpostable cases requiring the return or document (or information from these records) to resolve the unpostable condition.

    1. Forms 4251 are also generated for certain MASS closed unpostable records that have been deleted (voided); these records may require follow-up action by the preparer.

    2. An unpostable return charge-out is generated based on the unpostable category code. A Form 4251 will be generated from Files for Examination categories E1, E2, and E3.

    3. Forms 4251 generated for area office Examination Appeals prepared documents are forwarded to Examination Perfection files.

    4. If Files is unable to determine the preparer, or the unpostable document is a TC 460, the Form 4251 will be routed to Unpostables for resolution and/or proper disposition. Unpostables will route these records to the proper processing function.

     

  2. The Form 4251 contains the following:

    1. The TIN, MFT, tax period, current date, DLN, name control, receiving area (recipient code), category code, cycle sequence number, unpostable reason code, unpostable code, transaction code, and master file of the unpostable record. Exhibit 4.4.35–5, Form 4251—Unpostable Document Request, is provided as an example. Explanations for the various fields of the Form 4251 are also provided.

    2. If the unpostable record meets credit interest criteria it will print the interest reduction overpayment amount as an alert that it must be worked expeditiously.

    3. The transcribed name and address will generate on the Form 4251 when the unpostable is a long entity IMF return. This information should be used as part of the research tools in resolving unpostables. It should also be used to correspond for missing returns.

     

  3. Forms 4251 are generated for IMF, BMF, IRAF, and EPMF unpostable records. These document requests are produced by each master file, generally weekly for each unpostable cycle, and sorted in master file, recipient (receiving) code and DLN sequence (DLN within the master file and recipient code sort).

    1. The Forms 4251 being routed to Examination should be received in DLN sequence within the master file recipient code sort, except for requests that cannot be filled during the initial document pull.

    2. UPC 191 will be sorted to the front of all other unpostables in Category E1.

     

  4. In addition to the specific categories, the following conditions will not generate a Form 4251:

    1. TC 42X and Doc. Code is 77.

    2. UPC 152 or 159 and TC is not 120, 140, 141, 142, and Doc. Code is 14, 49, 63, 77, 78, 79, 80, or 81.

    3. TC 290 and Blocking Series is 590 thru 599 and MFT is 13 or 55.

    4. Check digit correction.

    5. AIMS closure.

     

4.4.35.23.3  (02-08-1999)
UP Employee Assignment/Aged List (GUF–55–40)

  1. The weekly UP Employee Assignment/Aged List is a cumulative listing produced from GUF for each employee assignment number (unit or individual) . Separate listings are produced for each employee assignment number within each area. The list has three main parts: aged inventory, assigned, and statute cases.

4.4.35.23.3.1  (02-08-1999)
Aged List

  1. The aged list identifies unresolved cases that have exceeded the maximum processing cycle or will become aged in the subsequent week. The cases become aged as follows: if the category code is E1 and the current cycle minus the unpostable record cycle unposted is greater than "10" , if the category code is E2 and the current cycle minus the unpostable record cycle unposted is greater than "5" , or if the category code is E3 and the current cycle minus the unpostable record cycle unposted is greater than "3" .

4.4.35.23.3.2  (02-08-1999)
Assigned List

  1. The assigned list provides a case workload and status report for each employee assignment number. This list will be used by management to identify the current workload of each employee to determine future assignments for an employee and for control purposes. This list will be used by employees to identify, resolve, and monitor their current case assignments.

4.4.35.23.3.3  (02-08-1999)
Statute Unpostables List

  1. The statute unpostables list is a working tool to show unpostable cases that originally did not meet statute criteria, but are now approaching statute criteria. This weekly listing will select unresolved unpostables which are within 90 days of their assessment statute expiration date (ASED) with MFT 02, 05, 30, 33, or 34 and are TC 150. This list will exclude E2 unpostables. Each week the list will highlight new unpostable cases with an asterisk. The case will remain on the list until it is resolved with a specific URC.

4.4.35.23.3.3.1  (02-08-1999)
Return/Document Unlocatable

  1. If a return or document cannot be secured or located within 10 workdays of the ASED, the following procedures should be followed:

    1. Return—prepare "dummy" return and forward to Statutes. Statutes can assist in preparing the "dummy" return.

    2. Document—forward a copy of TXMOD/TXDLN, UPCAS, and Form 4251 to Statutes for a quick/prompt assessment.

     

4.4.35.23.4  (02-08-1999)
Unpostable and Summary Reports

  1. A UP Report is produced for IMF, BMF, IRAF, and EPMF unpostable records. These reports identify the new unpostable cases and are generated weekly for each cycle. However, unpostable cases can be produced more than once per cycle for a Master File. Each time a New UP Report is generated, a summary report is also each Examination category by MF, repeats, and AUTO closures.

  2. The report is produced in two parts. One complete master copy is kept in Unpostables and the other part is separated for routing to and/or processing by the appropriate responsible function. The reports are divided into specific categories within each Master File and each category. The sequence number is assigned to records after they are sorted into DLN sequence. The report starts a new page each time the category changes.

  3. Upon receipt of the report, reassign all E1 and E2 cases (CC UPASG) . The assignment will be from the "unit" number automatically assigned by GUF to an individual employee assignment number. The cases cannot remain assigned to the unit number. CC UPASG is used to reassign a case or batches of cases. Generally, CC UPCAS will be used for E1 and E2, but only if these cases are not to be MASS closed. CC UPCAS is used to display the unpostable record. CC UPRES is used for the closure action of each record.

4.4.35.23.5  (02-08-1999)
Unpostable Rejected Activity List

  1. The Unpostable Rejected Activity List is a listing of reassignment, batch resolution, and RPS resolution activities which have failed GUF validity checks and dropped from further processing. These lists are sorted by employee assignment number, Master File, and Unpostable Cycle Sequence Number (UP SEQ NUM) . This list contains the UP SEQ NUM, command code activity code, status code, status date, reject doe, the assigned employee number, and the new employee number (if applicable).

  2. Based on the rejected code information provided for each reject, the employee will identify the problem and take corrective action. IRM 3.12.32 provides unpostable activity code and unpostable priority post code values and meanings to aid in understanding and resolution.

4.4.35.23.6  (02-08-1999)
Unpostable Closed Case List—Employee and Summary Listings (GUF–21–03)

  1. The Unpostable Closed Case Listings are provided by the employee number who inputs CC UPBAT or UPRES and by each MF. The listings are sorted by the area, employee number, Master File, and sequence number and provide status date, category, URC, type of closure; individual (I) or batch (B), and Unpostable Sequence Number (UP SEQ NUM) for each case closed. The "Total (number of) Closed Cases" is also shown for each employee number.

  2. The Unpostables Closed Case Listings are used to identify closed cases to the Quality Review function and provides closed case information to the employee and manager.

4.4.35.23.7  (02-08-1999)
Unpostable Workload Report (GUF–53–41)

  1. The Unpostable Workload Report lists the inventory count of workable, unworkable, and closed-unreleased cases for IMF, BMF, IRAF, and EPMF. The report also provides the total inventory count and the grand total of all unpostable records (current and aged) in the current inventory.

  2. Upon receipt, E1 cases must be reassigned to individual employee numbers. E3 generally can be MASS closed by the Unpostable function; however, these records are shown in Examination's Inventory Report. This provides Examination with data on the number of unpostable records that must be remade.

    Note:

    these E3 cases can be MASS assigned or individually assigned to the Examination function rather than MASS voiding if requested by Examination in writing.

     

4.4.35.23.8  (02-08-1999)
Unpostable Case Assignment List— Daily Employee Workload Listings (GUF–21–40)

  1. Daily employee assignment lists are produced by the GUF for each employee assignment number. The Daily Unpostable Case Assignment List is produced based on the prior day's case assignments and reassignments, and case status changes for an employee assignment number. The daily assignment list is produced for each employee assignment number identified by the GUF.

  2. The list is sorted in ascending order by area employee number, status code, Master File, and Unpostable Cycle Sequence Number (UP SEQ NUM). A repeat indicator ( "R" ), a history indicator ( "H" ) from CC UPCAS with a Z definer, the status date, category code, and unpostable and reason codes are shown for each case (UP SEQ NUM). The daily list will provide the UP SEQ NUM of the cases just assigned to the employee number the day before.

4.4.35.23.9  (02-08-1999)
Unpostable Inventory Report (GUF–55–43)

  1. The Unpostable Inventory Report is a management report tool to show the current inventory by specific unpostable and reason code. The report will also show aged inventory and percent of aged cases and ending inventory by workable, unworkable, and subsequent closing. The report is generated weekly for IMF and BMF unpostables.

  2. The report will show management certain inventory "bottlenecks" .

  3. The report will be sorted in ascending order of area, Master File, unpostable code, and reason code. The report will skip one line whenever the UPC changes totals.

4.4.35.23.10  (02-08-1999)
Nullified Distribution Listing (GUF–55–47)

  1. The Nullified Distribution Listing provides a control of the flow of document (audit trail) for all nullified closures (URC 1, 2, or 8). A listing is generated to each area who closed the unpostable as well as to the area or function that is responsible for the next processing action.

  2. The listing should be reviewed and notated when an area is wrong. A photocopy of the listing showing the case should be routed to the correct area.

  3. Areas will no longer need to enter the IDRS employee number in the "Remarks" when closing a case. This information will automatically be displayed on the Nullified Distribution Listing from GUF.

  4. The Nullified Distribution List is sorted in ascending sequence by nullify area code, URC, MF, IDRS employee number, and DLN.

4.4.35.24  (02-08-1999)
Unpostable Codes, Conditions, and Resolutions

  1. Unpostable codes, conditions, and resolutions for IMF, BMF, and IRAF.

4.4.35.24.1  (02-08-1999)
IMF Unpostable Codes, Conditions, and Resolutions

  1. See Exhibit 4.4.35–6 for a listing of IMF Codes.

4.4.35.24.2  (02-08-1999)
BMF Unpostable Codes, Conditions, and Resolutions

  1. See Exhibit 4.4.35–7 for a listing of BMF Codes.

4.4.35.24.3  (02-08-1999)
IRAF Unpostable Codes, Conditions, and Resolutions

  1. See Exhibit 4.4.35–7 for a listing of IRAF Codes.

Exhibit 4.4.35-1  (02-08-1999)
General and Unpostable Category Codes

(Reference: IRM 4.4.35.13)
     
Category Codes Category Names Master Files
A1 Criminal Investigation IMF, BMF, IRAF, EPMF
A2 Criminal Investigation— FTD's BMF
B1 Entity Control IMF, BMF, IRAF, EPMF
B2 Entity Control— FTD's BMF
C1 Statute Reject Batch IMF, BMF, IRAF
C2 Statute Void Batch IMF, BMF, IRAF
C3 Potential Statutes IMF, BMF, IRAF
C5 Credit Interest Returns IMF, BMF
D1 Adjustment No Change IMF, BMF, IRAF
D3 Adjustment Void Batch IMF, BMF, IRAF
NOTE: These cases should not be mass voided, they are to be worked on an individual basis.
E1 Examination Changes IMF, BMF, IRAF, EPMF
E2 Examination Statutes IMF, BMF, IRAF, EPMF
E3 Examination Void Batch IMF, BMF, IRAF, EPMF
F1 Name Controls Files IMF, BMF, IRAF, EPMF, PMF
F3 Files Unpostables IMF, BMF, IRAF, EPMF, PMF
G1 FTD Transactions BMF
L1 Foreign Operations IMF, BMF, IRAF
L3 All Other IMF, BMF, IRAF, EPMF
L5 All Other with Documents IMF, BMF, IRAF, EPMF
L7 Credit Transfers and Bad Checks IMF, BMF, IRAF
P1 PMF-Generated Transaction PMF
R1 Reject Batch Transactions IMF, BMF, IRAF, EPMF
V1 Batch Void With Document IMF, BMF, IRAF, EPMF, PMF
V3 Batch Void No Document IMF, BMF, IRAF, EPMF
V5 Generated Transaction IMF, BMF, IRAF, EPMF, CAWR
V7 CAF and MFT 88 Batch IMF, BMF, EPMF, CAWR
W1 Records with Transcripts BMF
W3 Documents and Transcripts BMF
W5 Retention Register Micro IMF, BMF
Y1 RPS Batch IMF, BMF
Y2 RPS Prior IMF, BMF
Z1 Bankruptcy IMF, BMF, IRAF

Exhibit 4.4.35-2  (02-08-1999)
Priority of Categories

 


1 A1— Criminal Investigation
2 A2— Criminal Investigation FTD Transaction
3 Z1— Bankruptcy
4 C2— Statute Void Batch
5 E2— Examination Statute
6 C1— Statute Reject Batch
7 C3— Potential Statutes
8 B2— Entity Control FTD Transaction
9 G1— FTD Transactions
10 P1— PMF Generated Adjustment
11 V7— Batch With No Source Document
12 B1— Entity Control
13 E1— Examination Changes
14 E3— Examination Void Batch
15 L7— Credit Transfers and Bad Checks
16 D1— Adjustment No Change
17 D3— Adjustment Void Batch
18 V5— Generated Transactions
19 Y2— Remittance Processing (RPS)— Prior Year or Repeats
20 Y1— Remittance Processing (RPS) Batch
21 R1— Batch Reject Transactions
22 C5— Credit Interest Return Transactions
23 L1— Foreign Operations Transactions
24 F1— Name Control— Files Research
25 F3— Files Unpostables
26 W5— Retention Register Microfilm
27 V1— Batch Void With Documents
28 V3— Batch Void No Document
29 W3— Batch With Documents and Transcripts
30 W1— Batch Transactions With Transcripts
31 L5— All Other Transactions With Documents
32 L3— All Other Transactions No Document

 

Exhibit 4.4.35-3  (02-08-1999)
Categories Worked by Functions

 

(Reference: IRM 4.4.35.13)

 

Criminal Investi- Entity     Unpostables    
gation Control Statutes Examination Files/ Mass/ Individual/ AUTO
              B1
              B2
              D1
              D3
              E1
              E3
              L1
              L5
              L7
              R1
              W3
              W5
**A1 **B1 **C1 **E1 *F1   C3 V1
A2 B2 C2 E2 *F3   C5 V3
      ***E3   D3 D1  
          ***E3 *F1  
    ***E3     P1 *F3  
            G1  
          L1 (PSC Only)  
            L3  
          *V5 L5  
            L7  
            P1  
            R1  
          *V7 *V5  
          *Y1 *V7  
          *Z1 W1  
            W3  
            W5  
            Y1  
            Y2  
            *Z1  
1 * These categories may involve more than one type of case closure depending on the specific unpostable conditions and procedures regarding the category.
2 ** Categories A1, A2, B1, B2, C1, C2, E1, and E2 are all "INDIVIDUAL" type case closures.
3 *** Category E3 cases can be Mass or Individual Closures (depending on local option)

Exhibit 4.4.35-4  (02-08-1999)
Nullification Codes

(Reference: IRM 4.4.35.17)  
       
UP-
Resolution Code		 Nullify-Definer (Area) Code Receiving Area
Literal		 Comments
1 01 Reinput— No Further Action Only use when case is being reinput.
  23 Dishonored Checks  
  30 FTD Function— Accounting  
  31 Data Controls  
  32 RACS  
  41 Accounting  
D blank Void— No Further Action Only used on cases that do not need to be worked by any other area. GUF will automatically set Nullify Definer (Area) Code 01.
2 02 Adjustments  
  03 Collection/SCC  
  04 Statute Only used for cases that need to be closed to Statutes.
  05 Examination/SC  
  06 IRP  
  07 Disclosure Off/SC & AO  
  08 Taxpayer Relations  
  09 Notice/Output Review  
  10 Unpostables Only include cases prepared by Unpostables.
  *11 Auto-Void/Contact NHQ  
  **13 Manual Void/EMP # Problem  
  14 CAF  
  15 CAWR  
  16 URP  
  17 Criminal Investigation/SC  
  19 Collection/AO  
  20 Examination/AO  
  21 Taxpayer Service/AO  
  22 SCWR—SC  
  25 Entity  
  41 Accounting  
  42 Transship to PSC  
  43 EP/EO SC  
  44 PRP/SC  
  45 Electronic Filing  
  46 Criminal Investigation/AO  
  47 EP/EO AO  
  48 PRP/AO  
  49 ERS/Rejects  
8 01 Reject Resolution Should only include cases that are to be resolved by Rejects. NO OTHER AREA WILL WORK CASE.
  02 Adjustments  
  03 Collection/SCC  
  04 Statutes Same as URC 2
  05 Examination  
  08 Taxpayer Relations  
  09 Notice/Output Review  
  12 Refund Inquiry— Taxpayer Service Can be used for refund inquiry cases that go to Accounting or Taxpayer Service. Notate area in REMARKS for easy association.
  17 Criminal Investigation  
  19 Collection—AO  
  20 Examination—AO  
  21 Taxpayer Service—AO  
  22 SCWR—SC  
  23 Dishonored Checks  
  24 Technical  
  40 Unidentified/Excess Collection  
  41 Accounting  
  42 Transshipped to PSC  
  43 EP/EO  
  44 PRP  
  45 Special EPMF Processing  
* Nullify—Area Code "11" will be used for auto-void cases that do not fall within any of the appropriate Organization Code ranges. This code will not be valid input by an individual tax examiner.
**Nullify—Area Code "13" will be used for manual voided cases that do not fall within any of the valid service center or area office codes for those appropriate Organization Code ranges. This code will not be valid input for auto-void cases or for input by an individual tax examiner.

Exhibit 4.4.35-5  (02-08-1999)
Form 4251 (Return Charge-Out)

This image is too large to be displayed in the current screen. Please click the link to view the image.
1 Page Number
2 TIN
3 Invalid TIN-Type
4 Literal "MFT"
5 MFT Code
6 Literal Penalty Number
7 Plan Number
8 Tax Period
9 Current Date
10 DLN
11 Name Line 2
12 Unpostable Sequence Number
13 Name Control
14 Name Line 1
15 Street Address
16 Literal "FTD-TUS"
17 FTD Microfilm Number
18 City
19 State
20 ZIP Code
21 Unpostable DOC Recipient—Misc.
21.1 Unpostable DOC Recipient
21.2 Employee Number Assign
21.3 Variable Recipient Data
22 Variable "CAT"
23 Unpostable Category Code
24 Service Center Abbreviation
25 Literal "SEQ NUM"
26 Literal "UPC"
27 Literal "TC-P" Primary Transaction Code
28 Literal "TC-S" Secondary Transaction Code
29 Literal "EC"
30 Literal "FSC"
31 Literal Pay IDRS No. "Payment NO" / "IDRS EMP NUM"
32 Literal "ASED"
33 Unpostable Sequence Number
34 Repeat Indicator— "R," "Blank," or "S"
35 Unpostable Code
36 MF Unpostable Reason Code
37 Transaction Code
38 Secondary Transaction Code
39 Trans Entity Code
40 Filing Status Code
41 Payment Sequence Number
42 ASED (Assessment Statute Expiration Date)
43 Literal "MF"
44 Literal "Name"
45 Literal "N/C"
46 Literal "FYM"
47 Literal "FS"
48 Literal "Refund Amount" or "PJ Amount"
49 Master File System ID Code
50 Name Line 1
51 Name Control
52 Fiscal Year Month
53 Filing Status Code
54 Primary or Interest Reduction Amount Interest Reduction-Overpayment-Computer/Primary Transaction-PJ Amount
55 MISC. Literal/Values
55.1 Literal—Variable UPC Data
55.2 Literal— "Com Zone"
55.3 Literal— "Vestigial Cycle"
55.4 Vestigial—Cycle will print if UPC is 197/347
55.5 Literal "DO"
55.6 Vestigial—DO will print if UPC is 197/347
55.7 Literal— "XREF-Sequence Number"
55.8 XREF—Sequence Number if a RPS TC 610/150 unpost then the cross-reference sequence number will print, if appropriate.
55.9 Literal "XREF-TIN"
55.10 XREF-TIN
55.11 DOC Request Remarks if UPCAS definers L, M, or N are used;
— "L" prints "2nd Request—F4251"
— "M" prints "3rd Request—F4251"
— "N" prints "4th Request—SPECIAL SEARCH-RT TO REJECTS"
Variable UPC Data
—If unpostable was MASS Voided by the system, "MASS
VOIDED—ROUTE TO PREPARER" will generate.
— "UPC DLN" or "POSTED DLN" will print the appropriate DLN for
UPC 807

Exhibit 4.4.35-6  (02-08-1999)
IMF Unpostables Codes, Conditions, and Resolutions

 

(Reference: IRM 4.4.35.24.1)


UPC 143 — Settlement Amount

 

(1) Optional Fields — Net Tax Liability Amount

 

(2) Categories

  1. E1 Examination Change Batch

  2. E2 Examination Statute

 

 

(3) Conditions

  1. RCO—When the input transaction contains a primary TC 30X and the DLN blocking series is 790–799 or 900–999, the computer will compare the "History transaction amount" in the input transaction with the TC 150 liability amount plus any subsequent adjustment transactions (TC 29X and 30X) that have posted to the module after the TC 150 posted. If not equal (or within $10.00 tolerance) the transaction will unpost unless Priority Code 2 or 3 is present in the transaction.

 

 

(4) Resolutions

  1. RC0

    1. Screen for obvious errors—URC 2. Re-enter Examination adjustment using correct information.

    2. Check RAR—compare the settlement amount on the document with the tax liability on the RAR, and other adjustments on TXMOD. If the incorrect amount was entered on the Examination document and RAR is correct, enter correct amount on line 10; URC 2 and re-enter Examination adjustment. If RAR is incorrect, contact originator and resolve per instructions.

    3. If original return is attached to 5344, delete item 10, URC and re-enter with 00X blocking series.

    4. If unable to determine correct tax liability, contact originator, resolve per instructions.

     

 

 

UPC 150 — Statute Expiration

 

(1) Optional Fields

  1. Assessment Statute Expiration Date (ASED)

  2. Master File Area Office

  3. Entity Code (when appropriate)

 

 

(2) Categories

  1. E2—Examination Statutes

 

 

(3) Conditions—The following transactions will unpost if the 23C date of the current cycle is later than ASED as extended, including input transaction.

  1. RC3—TC 290 or TC 300 with a debit amount unless a secondary TC 320 or 321 is present.

  2. RC5—TC 160 or 350 (Dec. Code 47 or 54) with debit amount.

 

 

(4) Resolutions

  1. RC3 and RC5

    1. If the period has been transcribed incorrectly and the correct period is not near expiration, correct the period on GUF with URC 6.

    2. If an extended statute date is on the document or indicated on the RAR but has not been updated on AIMS, a manual assessment will be necessary. Prepare Form 2859 to process the quick assessment in accordance with the Manual Assessment Chapter of this Handbook and as follows:

      1. Use Hold Code 2.

      2. Use Disposal Code 1 on Appeals Form 5403.

      3. Line through amount of tax liability and enter zero (-0-).

      4. Line through amounts and transaction codes of penalties and/or interest.

       

    3. If Examination Document is a partial assessment (100 block DLN) and the AIMS base shows 872A, verify ASED. If the statute is protected by 872A, prepare Form 5348 (see Update/Correction Chapter) to update AIMS to 6 digits; URC 2 and use CC AMCLS. After CC AMCLSU is input, AIMS must be updated back to 872A. If partial agreement has been manually assessed, URC 2 and refile.

     

 

 

UPC 151 — Mismatch SSN on MF

 

(1) Optional Fields—Master File area office code.

 

(2) Categories

  1. E1—Examination Change Batch

  2. E2—Examination—Statute

  3. E3—Examination Void Batch.

 

 

(3) Conditions

  1. RC0—An examination transaction which does not create an entity attempts to post to an account for which no entity is present. For example, TC 30X, TC 428, or TC 429 fails to match on Social Security Number (SSN).

 

 

(4) Resolutions

  1. RC0

    1. Screen for obvious entry errors. If found use URC–6.

    2. Research for correct TIN and/or NC. If found use URC–6.

    3. If account has been resequenced to another module (same taxpayer), post to MF name control using URC 6.

    4. If research indicates a name change has been made, but a check digit still appears on the unpostable record, use URC 6 and enter correct name control.

    5. If research indicates the module is on the Retention Register, secure copy of retention microfilm and route to Accounting on Form 5248 requesting transfer of the module to MF. Use URC–0 and cycle to post after TC 370.

    6. If an entity has been established on the valid segment with the same SSN and name control as the unpostable transaction and the transaction has been directed to the invalid segment, an ampersand (&) will precede the SSN on Form 4251. Input TC 040 through IDRS using Command Code ENREQ to move the amount to the invalid segment. URC 0 when Account has resequenced.

    7. If an entity has been established on the invalid segment for the same taxpayer but with a different SSN, and Form 4251 indicates the SSN on the unpostable document is valid, thoroughly research the account. If it is determined that no other taxpayer is involved, input TC 011 to transfer the account to the valid segment. URC 0 when resequenced.

    8. If the entity has been established on the invalid segment with the same SSN and name control as the unpostable transaction which was directed to the valid segment (no ampersand (&) precedes the SSN) the account can be reached only with TC 041. Input TC 041 using IDRS to move the account to the valid segment. URC 0 when resequenced.

    9. If Doc Code 77—Research for a good TIN or name control. If found correct use URC–6. If unable to correct use URC–2 and destroy document.

     

 

 

UPC 152 — Name Control Mismatch


(1) Optional Fields

  1. Master File area office code

  2. Master File name control.

  3. Master File name line.

 

 

(2) Categories

  1. E1—Examination Change Batch

  2. E2—Examination Statutes

  3. E3—Examination Void Batch

 

 

(3) Conditions

  1. RC1—A transaction that fails to match on the name control. These transactions need to match on only the first 3 characters of the input transaction with the first 3 characters of the posted name control.

  2. RC2—MPT 55 TC 013 must match on first 4 characters of first and last names.

 

 

(4) Resolutions

  1. RC1 & RC2

    1. If the TIN on the unpostable record has been entered incorrectly, correct with URC 6.

    2. If the name on the Master File is correct, use URC A.

    3. If the unpostable record name control is correct, look for a pending name change (TC 013) . If pending TC 013 is found, use URC 0 and release. If no pending TC 013 is found, use CC ENREQ and correct taxpayer's entity. Use URC 0 and cycle to post after entity action.

    4. If Doc. Code 77—Correct with URC A, if correction information can be secured. All other's void URC 2 and destroy document.

     

 

 

UPC 155 — Restricted Interest


(1) Optional Fields—AO sort code

 

(2) Categories Date

  1. E1—Examination Change Batch

  2. E2—Examination Statutes

 

 

(3) Conditions

  1. RC0—TC 29X or 30X attempting to post to a module that is restricted from generating interest (TC 780, 534, 770, or 34X) . Bypass for TC 290/300 for a zero amount providing no secondary transactions are present or if the adjustment record contains TC 34X or 77X. Also bypass for TC 291, 295, 299, 301, 305, or 309 if the sum of TC 34X is zero.

 

 

(4) Resolutions

  1. RC0—If TC 30X, input CC COMPA on IDRS to compute interest in accordance with the Interest Handbook.

 

 

UPC 158 — Estimated Tax Penalty/Duplicate Assessment


(1) Optional Fields

  1. MF AO code

 

 

(2) Categories

  1. E1—Examination Change Batch

  2. E2—Examination—Statute

 

 

(3) Conditions

  1. RC0—TC 30X or 29X blocked other than 200–299 or 930–949 carrying credit reference number 806 or 807, with no secondary TC 17X but the module contains a prior posted TC 170 or TC 171 with Doc. Code 17, 18, 24, 47, 51, 52, or 54. Bypass this check if the TC 290 contains priority code 1 or 8 or the TC 300 contains priority code 8.

  2. RC1—TC 29X or 30X attempting to post is within $10.00 of a posted TC 29X or TC 30X. This unpostable record is by passed for corrected UPC 158 of if the TC 290 contains priority code 1 or 8 or the TC 300 contains priority code 8.

 

 

(4) Resolutions

  1. RC0—if withholding taxes allowable as a credit under IRC section 31 were incorrectly reported on the return, recompute the ES penalty in accordance with the Penalty Handbook, and input T/C 17X considering the credit reference number of Form 5344.

  2. RC1—determine if the transaction is an exact duplicate. It may be necessary to secure the RAR and/or the previous adjustment document to make the determination. If unable to determine, contact originator. If the adjustment is a duplicate, edit Form 5344 depending on when the TC/ 420 was input.

    1. If the TC/ 420 was input prior to the previously posted TC/C 29X or TC/C 30X, change the TC/C 300 to zero, disposal code of original closing.

    2. If the TC/C 420 was input after the previously posted TC/C 29X or 30X, change the TC/C 300 to zero, disposal code 02 (if 5344) or 01 (if 5403); enter 99999998 in item 52. URC 2 and AMCLS.

    3. If the adjustment is not a duplicate. URC 0 to allow posting.

     

 

 

UPC 159 — No Existing Tax Module


(1) Optional Fields

  1. Master File Area Office code

 

 

(2) Categories

  1. E1—Examination Change Batch

  2. E2—Examination Statutes

  3. E3—Examination Void Batch

 

 

(3) Conditions

  1. RC0—An input transaction other than those listed below attempting to create a tax module (MFT 30):

  2. An input transaction other than those listed below attempting to create an MFT 55 module. TC 290 Blkg Series 150–198, 520–529, 590–599, 960–969, or 980–999 providing a reference number (other than 699) for a significant amount is present.
    — TC 520 CC 81, 83, 85–89
    — TC 640
    — TC 670
    — TC 914
    — TC 960
    — TC 370 containing civil reference numbers

 

140   59X except 592
141   610  
142   640  
150   660  
290 Blkg Series 200–299 666 with Julian Date 999
370 Doc. Code 51 or 52 670 with or w/o TC 150
690 424 with Push Code 700  
101, or 019–041 710  
430   760  
460   76X Doc Code 54 Blkg Ser 4XX
470 CC 96 800  
474   810  
480   840  
500 CC 52 914  
520 CC 81, 83 and 85–89 916  
540   930  
560   940  
582   960  
    971 other than AC 1–9

 

Note:

If the only transactions present in a module are TC 91X's, unpost any transaction (except 91X) that cannot create a tax module.

 

 

(4) Resolutions

  1. RCO

    1. Research for tax period error on the document and unpostable record. Correct with URC 6.

    2. Research for a different TIN. Correct with URC 6.

    3. Research for possible retention posting. If found, secure copy of retention microfilm and route to Accounting on Form 5248 requesting transfer of the module to MF. Use URC 0 and cycle to post after TC 370.

    4. If unpostable record is a TC 30X or TC 421 (6XX block) and it is determined that the original return was not processed, send a copy to Receipt and Control. Suspend until posted, then zero in unpostable document.

    5. If Doc. Code 77, research for possible entry errors and correct with URC

    6. If unable to post use URC 2 and destroy document.

     

 

 

UPC 160 — Dup File/F Freeze


(1) Optional Fields

  1. Master File area office code

  2. DLN of posted unreversed TC 420 or 424

 

 

(2) Categories

  1. E1—Examination Change Batch

  2. E2—Examination—Statute

  3. E3—Examination Void Batch

 

 

(3) Conditions

  1. RC3—A TC 420 attempts to post to a module containing an unreserved TC 420.

  2. RC4—A TC 300 without priority code 1, 3, or 4, or a TC 421 (Doc. Code 47) attempts to post to a module with a duplicate/amended return freeze (A– freeze).

  3. RC5—A TC 424 attempts to post (except TC 424 with Push Code 010) and an unreversed TC 420 or TC 424 is already posted.

  4. RC6—A TC 421 (Doc Code 47) attempts to post when the TC 640 freeze (F– freeze) is in effect.

  5. RC8—A TC 424 attempts to post to a module containing a TC 494.

 

 

(4) Resolutions

  1. For RC3—URC 2.

  2. For RC4—Determine if the amended return is in the case and if it has been considered. If so, URC 2, add PC 1 and re-enter the adjustment.

    1. If not found, review TXMODA to see if a previous adjustment has been made. If so, ensure issue is the same, change the document to TC 300 zero, DC 12, add PC 1 and re-enter. URC 2. If adjustment is not found, place the case in suspense and request the return. If the return has not been considered, route case to classification function and work per their instructions.

    2. If a partial assessment, verify that the AO has the amended. URC 2, add PC 4 and re-enter. Priority Code 4 will allow the partial assessment to post, even if the module contains a duplicate/amended return freeze, without releasing the freeze at Master File. If AO requests, void back to area.

    3. If TC 301, determine if case is a carryback. If so, restricted interest computation is necessary.

    4. If the "A" freeze unpostable is TC 421, check TXMODA to see if adjustment has been made. If so, URC 0. If not, place case in suspense and secure the return. Route case to Classification for review and work per instructions.

    5. If adjustment is required use ADJ54 and PC 1 in Block 15. Cycle in URC 0 to post after adjustment.

     

  3. For RC5—TC 424 will be worked on 424 Reject Register.

  4. For RC6—If the TC 421 is unpostable because of the presence of TC 640 in the module, research IDRS and AMDIS to determine if posting errors, cycling problems or examination errors caused the advanced payment to post to an incorrect tax module. Also check the spouse's SSN for possible incorrect posting of the payment. If necessary, secure the payment document to screen for use of the wrong TIN, tax period or other data that caused the information to be posted incorrectly to master file.

    1. If the TC 640 was used in error, reverse the TC 640 and post the correct transaction.

    2. If the payment posted to the incorrect module, determine correct TIN or tax period and input a credit transfer. Cycle URC 0 if UPCAS not voided. If UPCAS has voided the unpostable transaction, input TC 421 (REQ77) and TC 290 0 with refile DLN.

    3. If research indicates that the TC 640