part4-39

A Hold Code 1 is automatically generated to prevent
the release of an advance payment pending the processing of the final adjustment
action.

When a partial assessment is processed as a quick
assessment, after processing the quick via Form 2859, prepare Form 3177, Notice
of Action for Entry on Master File, to input TC 570. The TC 570 will prevent
the erroneous refund of a credit balance and advance/subsequent payment that
may be on the tax module.

If a partial overassessment is to be released
and CC AMCLSF is used, input a Hold Code 3 on the Form 5344. Hold Code 3 will
allow systemic release of the refund, eliminating the need for cycling and
subsequent input of a TC 290 for zero to release the refund.

If a partial overassessment is to be refunded
using manual refund procedures, Form 5344 for the partial overassessment must
be processed within four weeks from the schedule date of the manual refund
to prevent the taxpayer from receiving a bill resulting from a debit balance
when the manual refund posts to Master File.

This command code is used when an assessment must be made against one
of the taxpayers that filed a joint return. An example of this is when one
taxpayer petitions tax court and the other does not.

Enter a
“P”
if the assessment is against the primary
taxpayer, enter an
“S”
if the assessment is against the
secondary taxpayer.

If an S is entered in Item 56, the name control of the secondary spouse
is required in Item 57. This is to prevent unpostables when the taxpayers
last names are not the same.

Enter either an EIN or SSN. The first digit of
the number must be entered in the left most position,

Form 706, the SSN of the decedent must be used
followed by the letter
“V”
or
“W”
.

Form 709, the SSN of the donor must be used, following
by the letter
“V”
or
“W”
.

NMF, an
“N”
must be entered
immediately after the EIN or SSN.

Temporary SSN secured by use of the Command Code
AMTIN7, the SSN will be entered followed by the letter
“D”
.
An adjustment can be made against a temporary SSN. The Entity Function at
the campus will attempt to secure the correct SSN from the taxpayer and perform
the
“merge”
of the correct number is secured. In situations
where a taxpayer does not have an EIN or refuses to file Form SS–4 to
obtain one, the examining officer is required to secure a permanent EIN from
the campus Entity Control function. The examining officer will have the return
controlled Non-Master File until the permanent number is received.

The Entity Function at the campus will attempt
to secure the correct SSN from the taxpayer and perform the
”
merge”
of the account to the correct number after the SSN is secured.

If an asterisk (*) is present indicating an invalid
SSN, correction may have been made since the original opening. Research both
the correct number and the invalid number to determine whether the account
has been corrected.

If information has been secured to resolve the
invalid SSN, contact should be made with the Entity Function at the campus.

These cases may also involve a duplicate filing
condition caused by returns of two different taxpayers trying to post to the
same account.

Do not attempt to correct this condition with
Form 2363, Master File Entity Change. When an account number is changed, all
data posted to the incorrect number is transferred to the correct number.
Carefully study transcripts of all accounts involved before making any adjustments.

When it is determined that a return has posted
to a different taxpayer’s account, see the Reprocessing Return Chapter
for closing instructions.

In situations where a taxpayer does not have an
EIN or refuses to file Form SS–4 to obtain one, the examining officer
is required to secure a permanent EIN from the Entity Function at the campus.
The examining officer will have the return controlled Non-Master File AIMS
until the permanent number is received. See Taxpayer Identification Exhibit.

Enter the Master File Tax Code (MFT) or Non-Master
Tax Code (NMFT) for the tax return.

Enter tax period using YYYYMM format. Example:
Enter 199712 for a 1997 calendar year return.

For Form 706 enter all zeroes (000000).

For Forms 11, 11C, 730 or 2290 enter the beginning
of the tax period.

A tax period on Form 5344 different from that
of the Master File will result in an unpostable condition. It may be necessary
to change the tax period as a result of the Examination determination or because
of an error in the original processing of the return, see IRM 4.4.3.11, Reprocessing
Returns.

Enter the check digit in positions 33 and 34.
If the check digit is not available, the name control should be used. If there
is no check digit or name control on the first print line of the Examination
label, underline the name control on line two. If the check digit was used
to establish the account, the check digit must be used at closing.

Enter the name of taxpayer as shown on the tax
return. If necessary, edit the name not to exceed 35 characters.

Hold Code 1 — If the net module balance
after posting the adjustment is a credit, a refund will not be issued until
one of the following occurs:

Hold Code 2 — Automatically generated if
Disposal Code is 07 or 11. If the module balance after posting the adjustment
is zero or debit, a notice is not issued and no credit freeze is set. If the
module balance after posting the adjustment is a credit, neither a refund
nor an overpayment notice will be issued until one of the following occurs:

Hold Code 3 — A notice is not issued at
any time for this adjustment.

Hold Code 4 — If the module balance after
posting the adjustment is a credit, a notice is not issued at any time, and
a refund is not issued until one of the following occurs.

Do not use Hold Code 2 on partial assessments
unless it has been specifically requested that the taxpayer not receive a
notice. An example of this is when an SFR has posted and the taxpayer files
a return at the center. If the tax per return is assessed as a partial, we
do not want a CP21E sent since it states that the assessment is due to an
examination.

CP 243 will be generated if the adjustment takes
the module balance from debit to zero or credit. Hold Code 4 or 5 will suppress
the CP 243. If both Hold Codes 4 and 5 are applicable, use Hold Code 4.

Hold Codes 5 through 9 were used to identify TEFRA
assessments (partial assessments and final closures) on Master File through
December 31, 1985 at which time the new blocking series became effective which
identify the TEFRA assessments.
 —Hold Code 5 — TEFRA
assessment but no hold action desired
 —Hold Code 6 —
Acts same as Hold Code 1
 —Hold Code 7 — Acts same as
Hold Code 2
 —Hold Code 8 — Acts same as Hold Code 3
 —HoId
Code 9 — Acts same as Hold Code 4

Provided to the right of the hold code field for
a short explanation of why the hold code is necessary. The remarks will assist
the unpostable examiner if the transaction unposts.

The agreement date is generally considered to
be the IRS received date. If the received date is missing or illegible, enter
the postmark date (excluding metered mail) or the signature date, whichever
is closer to the current date.

When the agreement form contains instructions
as to the effective date of the agreement, that effective date should be entered.
This date cannot be greater than the current date.

When payment is accepted in lieu of a signed agreement,
the payment received date may be entered in Item 8 to close the case.