part4-36
- 4.4.9.1
Introduction - 4.4.9.2
Research - 4.4.9.3
Payments - 4.4.9.4
Establishing AIMS/ERCS Controls - 4.4.9.5
Delinquent Return Secured – No TC 150 Posted
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This section contains procedures for processing and closing delinquent
returns secured by examination and substitute for returns (SFR).
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Before forwarding a secured delinquent return for the posting of the
TC 150, or requesting an SFR, the examiner must request research. Use Form 6882, IDRS/Master File Information Request, or
perform online research using Command Code IMFOL/BMFOL/INOLE.
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For IMF accounts, both the primary and secondary SSNs must be researched
for prior filing and/or pending activity.
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If you discover that your non-filer taxpayer filed as the spouse on
a joint return, the disposition depends on the type of controls you have on
the account.-
If you have controls for the primary SSN on the filed return, or will
establish controls, transfer the time applied on ERCS on your non-filer case
to the primary SSNs case. Complete Form 10904, Request
for Record Deletion from AIMS(disposal code 38) and forward the
form to your AIMS/ERCS Analyst following local procedures. -
If you do not have controls for the primary SSN on the filed return, nor
plan on establishing controls, complete Form 10904,
Request for Record Deletion from AIMS(disposal code 38) and forward
the form along with the workpapers to your AIMS/ERCS following local procedures.
Do not modify the time on the case.
-
-
Review transcript/IDRS to see if any of the following are present.
-
If a CI freeze (“–Z”
) is present on the account,
coordinate with CI to determine if Examination can work the case. If CI approves,
use Push Code 049 on the requisition. This will cause the TC 424 to bypass
the CI unpostable. A TC 150 does not have to be on the module to use Push
Code 049. If there is no TC 150, the account will remain a skeletal record
for 26 months and then age off of AIMS. Push Code 036 will unpost if there
is a CI freeze at Master File. You cannot request an SFR if the account has
a CI freeze.
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Do not send a delinquent return to the campus or request an SFR if a
TC 150 has posted.
-
If research shows that the taxpayer is in TDI status (Master File status
02) input a TC 595 with Closing Code 57 to close the Collection control. Extreme
care should be taken when using this transaction code since it will prevent
the issuance of TDI notices to the taxpayer.
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For all tax years in TDI status 03, inputting a TC 424 with a push code
of 020, 021, 036 or 037 will automatically generate a TC 595.
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SFRs – For both BMF and IMF, the computer generated SFR will automatically
freeze the prepayment credits.-
BMF – the posting of the SFR TC 150 will generate a TC 570 if there are
credits on the module when the SFR posts. -
IMF – the posting of the SFR TC 150 will generate a TC 570 if there are
credits on the module or credits post to the module after the SFR posts.
-
-
Secured Returns (No TC 150 Posted) – If payments are posted to the module
and you want to prevent the credits from refunding when the TC 150 posts,
enter the following codes on the Form 13133, Expedite
Processing Cycle.-
BMF – Enter an “X”
in the box to the left of the CCC “X”
. See IRM 2.24.1. -
IMF – Enter an “X”
in the box to the left of the CCC “3″
. See IRM 2.24.1.
-
-
If payment is secured, prepare Form 3244-A, Payment
Posting Voucher-Examinationfollowing procedures found in IRM 4.4.24, Payments and Remittances.
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Before AIMS/ERCS Controls can be established, research must be conducted.
Instructions vary depending on type of return.-
If you secure a delinquent return and there is no TC 150 posted, See IRM 4.4.9.5.
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If your case file contains an SFR, See IRM
4.4.9.6.3. -
If you need to generate an SFR, See IRM
4.4.9.6.2. -
If you secure a delinquent return and want to accept it as filed and there
is a TC 150 posted, See IRM 4.4.9.7.3. -
If you secure a delinquent return with audit potential and there is a
TC 150 posted, See IRM 4.4.9.7.4.
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Most non-filer accounts are created at the campus. For non-filer cases
that are created in the field, establish the non-filer account on AIMS/ERCS
as soon as it is known that an examination will take place or when examination
time is first applied. For secured delinquent returns, establish AIMS/ERCS
control as soon as a return is secured or time is first applied whichever
is earlier.
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Form 5345-Bis the Examination Request
for Non-ERCS (Examination Return Control System) Users -
Form 5345-Dis the Examination Request
for ERCS Users
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When completing Form 5345-B, Examination Request
Non-ERCS Users,to establish a non-filer directly onto IDRS, include
the following entries:-
Return Requested, do not leave blank which denotes return requested, since
there is no return to request. Enter a “1″
, which denote
Form 5546, Examination Return Charge-Out&
labels requested, or a “3″
, which denotes, No Form 5546, Examination Return Charge-Out, No Labels,
No Return requested. -
Push Code, enter 020, 021, 036 or 037. A push code must be used when establishing
AIMS controls if there is no TC 150 posted at Master File. The Push Code holds
the TC 424 at Master File until a TC 150 posts.
Use 020 for delinquent
returns.
Use 021 if no return is secured and an SFR is not desired at the
present time.
Use 036 to cause a computer generated SFR to post to Master
File. If input before close of business Thursday, the TC 150 will post on
Saturday (if the TC 424 does not unpost).
Use 037 for potential CID Referral/Non-filer. -
Source Code
Use 024 for non-filers not related to any other return.
This source code should rarely be used.
Use 025 for the primary return
of the non-filers built in Memphis.
Use a related non-filer source code
for returns related to returns already open. -
Reason for Request must be entered and consistent with the Push Code used:
If
Push Code 020 – write: “DELINQUENT RETURN SECURED BY EXAMINATION
”
.
If Push Code 021 – write: “NONFILER”
.
If
Push Code 036 – write: “EXAM/SFR”
.
If Push Code 037
– write: “POTENTIAL CI / NONFILER”
.
-
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When completing Form 5345-D, Examination Request
ERCS Usersto establish a non-filer via ERCS, include the following
entries:-
Do you want the original return? — Answer “N”
for
no, since there is no return to request. -
Do you want Labels? — “Y”
for yes and ”
N”
for no. -
Push Code, enter 020, 021, 036 or 037. Provide the appropriate push code
for each tax period listed. A push code must be used when establishing AIMS
controls if there is no TC 150 posted at Master File. The Push Code holds
the TC 424 at Master File until a TC 150 posts.
Use 020 for delinquent
returns.
Use 021 if no return is secured and an SFR is not desired at the
present time.
Use 036 to cause a computer generated SFR to post to Master
File. If input before close of business Thursday, the TC 150 will post on
Saturday (if the TC 424 does not unpost).
Use 037 for potential CID Referral/Non-filer. -
Source Code:
Use 24 for non-filers not related to any other return.
This source code should rarely be used.
Use 25 for the primary return of
the non-filers built in Memphis.
Use a related non-filer source code for
returns related to returns already open. -
Reason for Request must be entered and consistent with the Push Code used:
If
Push Code 020 – write: “DELINQUENT RETURN SECURED BY EXAMINATION
”
.
If Push Code 021 – write: “NONFILER”
.
If
Push Code 036 – write: “EXAM/SFR”
.
If Push Code 037
– write: “POTENTIAL CI / NONFILER”
.
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For returns where the taxpayer does not have a TIN, the group should
request that the taxpayer submit Form SS-4, Application
for Employer I.D. Number,for EIN to the Internal Revenue Service,
or Form SS-5, Application for a Social Security Number
Card (Original, Replacement or Correction),for SSN to the Social
Security Administration. Also request the taxpayer furnish the IRS with the
SSN assigned by SSA as soon as possible. -
In the interim, the group should request a dummy TIN (via Command Code
AMTIN7) from the local AIMS/ERCS unit. Establish NMF AIMS
control using Form 5354, Examination Request
Non-Master File. See IRM 4.4.9.4.2.
for additional information. The NMF control is to provide AIMS/ERCS
controls until a TIN is secured. After the TIN is secured, close the NMF control
with a DC 28. -
If the taxpayer will not request their own EIN, contact the campus Entity
Control section to obtain the assignment of a permanent EIN. -
A computer generated SFR cannot be done on a temporary or invalid TIN.
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The case cannot be forwarded to CCP for closing unless a TIN has been
secured.
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Upon receipt of a delinquent return, ensure that the following items
are completed:
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The taxpayers name must be typed or printed legibly, with no strikeovers.
The name used with a recently acquired EIN should duplicate the taxpayers
Form SS-4, Application for Employer I.D. Number.
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If the name is not correct, prepare or secure a corrected return and
solicit the taxpayer’s signature on the corrected delinquent return.
Mark an “X”
across the face of the incorrect return. Write
the word “Invalidated”
, sign and date below the notations.
Keep the invalidated return in the case file.
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Verify with the taxpayer that the address shown on the return is the
taxpayers current address. If it is not, cross out the address on the return
and enter the taxpayers current address. Compare the address on the return
with the address on ENMOD or INOLES. The posting of the return will update
the address at Master File but it will delay the posting of the TC 150 by
one cycle. If the address is different and you do not want a one cycle delay,
prepare a Form 2363reflecting the address
change and fax it to Centralized Case Processing (CCP). Fax numbers for CCP
can be found in the Contact Listing posted to the AIMS website: http://sbse.web.irs.gov/AIMS.
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Verify the TIN shown on the return is correct by researching Master
File. If the taxpayer does not have a TIN,
See IRM 4.4.9.4.2..
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Verify that all W–2’s, required forms and schedules are
present and the computations are correct.
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Verify the presence of the taxpayer’s original signature and the
date the return was signed.
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To call attention to a prior year return, enter the tax period in YYYYMM
format in bold numbers above the tax period printed on the form. If the appropriate
tax year form was not used, Submissions Processing will accept a current year
form.
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Date stamp the delinquent return when it is received. If a date stamp
is not available, annotate on the return in the upper left side margin, “Received”
, the date received, and the examiner’s name
and title.
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BMF – Check ENMOD or INOLES.
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Does the entity already exist? If it does not, complete
a Form 2363and fax to CCP. To create an
account, enter an “X”
in box to the right of the Trans
Code 000 and enter the earliest tax year that you are working. If input successfully,
the account will establish the Monday after the 2nd weekend from the input
date. Do not send the return to Submissions Processing until the account is
created. -
ERCS controls can be requested even though an account does not exist.
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AIMS controls cannot be requested until the account is created.
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IMF – Check ENMOD or INOLES.
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An account does not have to exist for an IMF return to post. The posting
of an IMF TC 150 will create the module. -
ERCS controls can be requested even though an account does not exist.
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AIMS controls cannot be requested until the account is created either
by the posting of the return, or submission of Form
2363. To create an account, enter an “X”
in
box to the right of the Trans Code 000 and enter the earliest tax year that
you are working. Fax the form to CCP. If input successfully, the account will
establish the Monday after the 2nd weekend from the input date. If you are
creating an account, do not send the return to Submissions Processing until
the account is created.
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BMF: Displayed as “Filing Requirements”
on ENMOD
and INOLES.-
For income tax returns, check to see if there is a filing requirement
for an income tax return. If there is a filing requirement, ensure that it
is consistent with the secured return. Example: If the filing requirement
is for a Form 1065 or
Form 1120Sand you secure a Form 1120,
a Form 2363must be completed (check Item
016, Change misc. codes), enter the appropriate filing requirement code and
fax to CCP. See Document 6209 for a
list of filing requirement codes. -
If no filing requirement is present, it is not necessary to create one
unless you are attempting to post a Form Form 1120S
. Entity must show that an 1120S election was filed or the TC 150
will unpost UPC 310 RC 4. For all other returns, the posting of the return
will create the filing requirement. -
For non-income tax returns, a filing requirement is not necessary. The
posting of the return will create a filing requirement.
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IMF: Displayed as MAIL-FR>XX on ENMOD; Displayed as MFR XX on INOLES.
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A filing requirement is not necessary. The posting of the return will
create a filing requirement.
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Make a copy of the delinquent return to maintain in the case file. On
the copy, write in red on the top margin COPY OF RETURN
. The original return will be filed under the TC 150 DLN. The examination
should be conducted using “Copy of Return Procedures”
which
will cause the original return to be pulled and associated with the copy under
the TC 421 DLN after the case is closed.
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Write in red on top margin of the original return, “DELINQUENT RETURN SECURED BY EXAMINATION.”
The original
return WILL NOT be returned to the group but will be filed under the TC 150
DLN. When case is closed with a Copy of Return blocking series, Files will
pull the original return, associate it with the Exam case file which will
be filed under the TC 421 DLN.
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Attach a completed Form 13133, Expedite Processing
Cycleto the front of EACH return paying special attention to the
following:-
Check box for “DELINQUENT RETURN”
.
It is essential that a separate Form 13133, Expedite
Processing Cycle be prepared for each tax period. If there are
multiple tax periods for the same taxpayer indicate on the first Form 13133, Expedite Processing Cycle, “BLOCK TOGETHER—Related
tax periods/do not separate
” -
Contact name – This can be the Examining Officers Information or the
group secretary.
.
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If you want penalties assessed, make NO notations in the penalty area
of the Form 13133, Expedite Processing Cycle.
Failure to Pay, Failure to Deposit, Failure to File, and Estimated Tax Penalty,
are all automatically computer generated and assessed if applicable.Note:
Certain penalties such as the Fraudulent Failure to File (FFTF) penalty, cannot
be assessed during the initial processing of the return. This penalty must
be put on an RAR, a Form 5344, Examination Closing
Record prepared, and assessed as a partial or during the final
closing of the examination. If you enter an “R”
on the
Form 13133, Expedite Processing Cycle, you
will not have to abate the previously assessed Failure to File (FTF) before
assessing the FFTF. -
If you DO NOT WANT penalties assessed during the initial processing
of the TC 150, notate this on the Form 13133, Expedite
Processing Cycleby putting an “X”
in the box
to the left of the applicable Computer Condition Codes/Return Processing Code..CCC Definition BMF D Do Not assess Failure to Pay Penalty J Do NOT asses Failure to Deposit Penalty
(Forms 720, 940, 941, 943,
945, and 1042).R Do NOT assess Failure to File Penalty 8 Do NOT assess Estimated Tax Penalty IMF M Do NOT assess Failure to Pay Penalty P Do NOT assess Estimated Tax Penalty R Do NOT assess Failure to File Penalty
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Secured delinquent returns may have RSED and ASED issues.
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If the IRS received date is later than the RSED (Refund Statute Expiration
Date) but the post mark is on or prior to the RSED, DO NOT enter a Computer
Condition Code (CCC) as stated below. By NOT entering a CCC, the campus will
forward the delinquent return to the Statute Unit. The Statute Unit will code
the return to allow a refund to be released if it is a refund return. The
refund will not be released if this process is not followed.
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If the normal ASED has expired or is within 3 months of expiration,
a code must be entered on the Form 13133, Expedite
Processing Cyclewhich will cause the return to bypass the statute
unit. Examination has verified the ASED therefore it is not necessary to have
the return go to the statute unit. On the Form 13133,
Expedite Processing Cycleplace an “X”
in the
box to the right of the:-
“K”
for IMF -
“W”
for BMF
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After all the steps above are completed, the delinquent return, Form 13133, Expedite Processing Cycle and Form 3210must
be mailed to Submissions Processing at
the appropriate campus using the table below.IMF returns: With International Aspects, send to: IRS
PO Box 245
Philadelphia, PA 19020All other IMF send to: IRS: Stop 515
310 Lowell Street
Andover, MA 05501If group securing
BMF return is in LMSB, send to:IRS – Stop 6054
1973 North Rulon White
Blvd.
Ogden, UT 84404If group securing
BMF return is Not in LMSB,
send to:With International Aspects send to: PO Box 245
Philadelphia, PA 19020All other BMF, send to: IRS – Stop 31
201 W. Rivercenter Blvd.
Covington, KY 41011
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The group will monitor for the posting of the TC 150. The ERCS Overage
Requisitions Report may be helpful in monitoring for the posting. -
When the TC 150 posts, AIMS and ERCS will become full records.
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If AIMS and ERCS do not become full records within 6 weeks, the following
steps should be followed to determine the cause of the delay.Review CC TXMOD a. If pending (PN) TC 150, wait 1-2 weeks for TC 150 to post. b. If rejected (RJ) TC 150, the return may not post for some time.
For BMF, refer to IRM 3.12.38, Error Resolution – General
Instructions, Exhibit 21 if the ERS-STS-CD is present. For IMF,
refer to IRM 3.12.37, Error Resolution – General Instructions.Research CC UPTIN to see if TC 150 unposted. a. UPC and reason code identifies the reason why the transaction went
unpostable. Refer to Document 6209, Section 8.b. Status Code identifies the status of the unpostable.
A = Opened/Assigned
B
= Special Closure
C = Suspensec. Contact your local AIMS/ERCS analyst who will in turn contact the
person working the unpostable to offer assistance in resolving the unpostable.Research prior and subsequent tax periods to see if return posted to
the wrong tax period. If so, contact Centralized Case Processing and request
that Reprocessing procedures be initiated. -
If after 8 weeks there is no record of a posted TC 150, pending TC 150,
rejected TC 150 or unposted TC 150, resubmit the return to Submissions Processing.
Notate on the copy of the return “Original return was lost,
process as original”
.
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Follow normal examination procedures paying special attention to the
following.-
Use the amounts from the delinquent return as the starting figures on
the RAR. -
Notate in red at the top of the copy “Copy of Return”
and
include in case file. -
Identify the return on RGS as a “Copy of Return”
to
ensure proper blocking series on the Form 5344, Examination
Closing Record.
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-
If no changes are warranted, close case as a no-change case and include
the following entries on the Form 5344, Examination
Closing Record.-
Item 13, Disposal Code of 01
-
Item 37, Delinquent Return. This entry should reflect a ”
T”
for the first return secured, an “R”
for the
subsequent returns secured. See IRM 4.4.12.4.47, Examined
Closings, Surveyed Claims, and Partial Assessments. -
Item 414, Delinquent Return Amount. This entry should reflect the refund
or balance due shown on the return. See IRM 4.4.12.4.72,
Examined Closings, Surveyed Claims, and Partial Assessments.
-
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Prepare a “no change”
RAR.
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If changes are warranted, follow normal closing procedures for changed
cases but include the following entries on the Form
5344, Examination Closing Record.-
Item 13, Disposal Code – use the applicable disposal code of the examination,
agreed, unagreed, etc. -
Item 37, Delinquent Return. This entry should reflect a ”
T”
for the first return secured, an “R”
for the
subsequent returns secured. See IRM 4.4.12.4.47, Examined
Closings, Surveyed Claims and Partial Assessments.. -
Item 414, Delinquent Return Amount. This entry should reflect the refund
or balance due shown on the return. See IRM 4.4.12.4.72,
Examined Closings, Surveyed Claims and Partial Assessments.
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