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Part 25. Special Topics

Chapter 15. Relief from Joint and Several Liability

Section 15. Mirror Modules for Requests for Relief from Joint and Several Liability

25.15.15  Mirror Modules for Requests for Relief from Joint and Several Liability

25.15.15.1  (03-21-2008)
Overview

  1. Mirroring modules became effective in cycle 4 of 2005. Mirror modules are created as a result of a taxpayer action which could result in one or both taxpayers being held fully or partially liable. The purpose of mirroring a joint Master File Tax (MFT) Code 30 module into separate, but identical MFT 31 modules, is to allow for the correct computation of each taxpayer’s Collection Statute Expiration Date (CSED). Mirroring will also allow collection activity to continue for the nonrequesting spouse (NRS).

  2. Innocent Spouse, Bankruptcy, Offer in Compromise, and Taxpayer Advocate Service are the only functions currently creating Mirror Modules.

  3. Benefits of the new process include:

    • Eliminates the need to prepare Form 12810, Account Transfer Request Checklist

    • Mirrors status and freeze codes

    • Eliminates the need for manual restriction of penalty and interest and manual computation of accrued statutory additions

    • The ability to systemically continue collection activity on one spouse while the claim or petition of the other spouse is pending

    • Replication of MFT 30 module transactions with associated coding

    • Subsequent payments are automatically cross referenced

    • Systemic computation of CSED and Assessment Statute Expiration Dates (ASED) for both spouses

    • The ability to manage and update each spouse’s module separately if required

    • Improved ability to provide accurate and prompt service to taxpayers and their representatives

    • Increased employee job satisfaction by providing easy accessibility to account information

  4. When it is necessary to do an adjustment to correct an account problem you need to adjust both MFT 31 accounts unless one MFT 31 account has been satisfied in full.

  5. Information input to MFT 31 is not transmitted to the Social Security Administration. Do not input item reference numbers to change self employment tax (889), self employment income (878/879) or medicare income (895/896) to MFT 31 accounts. Input the necessary adjustment, without the reference numbers to the MFT 31 account(s). Changes to self employment tax, self employment income, and medicare income must be input to MFT 30. Input TC 290 .00, the appropriate item reference numbers, reason codes and hold code 4 to the joint MFT 30 account.

25.15.15.2  (03-21-2008)
First Read

  1. Once a Request for Innocent Spouse Relief has been screened through First Read and determined to be a "qualifying" claim, the joint module will be mirrored into two separate modules on Master File Tax (MFT) 31. Desktop Integration (DI) will generally systemically input the transactions to mirror modules when a claim is opened through First Read.

  2. There are some situations which prevent mirroring of modules See IRM 25.15.15.2.1. and other situations where conditions must be resolved prior to mirroring.

  3. If it is necessary to manually input (i.e., the primary taxpayer is deceased and the mail filing requirement is 08 or DI is down) the transactions to mirror the modules, follow the steps below:

    1. Input transaction code (TC) 971 AC 065 with the cross-reference taxpayer identification number (TIN) of the requesting spouse (RS) unless the RS is the primary taxpayer

    2. Input TC 971 AC 104 with the cross-reference TIN for the primary spouse.

      Caution:

      If a TIN is invalid, which means there is an * behind it, you can not create a MFT 31 module.

    3. Input TC 971 AC 104 with the cross-reference TIN for the secondary spouse..

    4. Input TC 971 AC 145 with a posting delay code (PDC) of 1. This creates the mirror modules for each spouse on MFT 31

    5. Input TC 131 with a PDC of 3 on the NRS's ENMOD.

      Caution:

      If the primary taxpayer is deceased and there is a MFR of 08 you will have to wait until the MFT 31 module has been established before posting the TC 131.

    6. Input TC 972 AC 145 with a PDC of 3 on the MFT 30 and both MFT 31 modules.

      Caution:

      If the primary taxpayer is deceased and there is a MFR of 08 you will have to wait until the MFT 31 module has been established before posting the TC 972 AC 145.

    7. Input TC 972 AC 065 with a PDC of 4 on the MFT 30 and the NRS's MFT 31 module.

      Caution:

      If the primary taxpayer is deceased and there is a MFR of 08 you will have to wait until the MFT 31 module has been established before posting the TC 972 AC 065.

    8. Each of these transactions is input separately via the Integrated Data Retrieval System (IDRS) command code (CC) REQ77. Use the claim received date as the transaction date for each transaction. Notate the history sheet with each TC 971 input with the date and your initials.

    9. A TC 971 AC 110 will generate in each MFT 31 module with the cross-referenced TIN of the other spouse. This causes the two MFT 31 modules to point to each other. Payments posted to one MFT 31 module should be systemically duplicated as a credit on the other MFT 31 module as long as the TC 971 AC 110 transactions are not reversed off the MFT 31 modules or there is a designated payment code of 31. The cross-referenced payment will be identified by TC 290 .00 & TC 766 $$$ CRN TC 337. The credit reduces the module balance but is not refundable.

    10. A TC 370 will systemically generate to both MFT 31 mirror modules. The TC 370 on the primary TIN will have a document locator number (DLN) of NN 251999 Julian Date 950 00 Y . The TC 370 on the secondary TIN will have a DLN of NN251999 000 00Y. " NN" identifies the location digits of the controlling Julian date of 999 identifies a mirror module. The 950 blocking series denotes the primary TIN. The 000 blocking series denotes the secondary TIN. The " Y" denotes the current processing year.

    11. The MFT 30 and both MFT 31 modules will have a posted TC 400 at this point. All three modules will be in zero balance. The TC 400s generate an M- freeze code so the modules are restricted from any further action unless a TC 402 is input to reverse the TC 400.

25.15.15.2.1  (03-21-2008)
Exceptions to Mirroring Modules

  1. There are some situations preventing mirroring of modules . The modules which can’t be mirrored will have to be transferred to Non-Master File (NMF), see IRM 25.15.9.1.22. The situations preventing mirroring and requiring transfer to NMF are:

    • Accounts with an Internal Revenue Service Number (IRSN), Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number as the primary TIN.

    • Do not mirror or attempt to validate an TIN if either taxpayer has an invalid TIN because the taxpayer did not update their name with Social Security Administration (SSA). If the case is fully or partially allowed, send case to Processing when you are ready to close the case. If case is fully or partially allowed, the module will be transferred to NMF. Indicate " Invalid TIN" on non-mirrored Form 3465. If case is disallowed, input TC 290 .00 on MFT 30 modules.

    • Secondary taxpayer is deceased.

    • MFT 31 transactions were already generated, e.g., TC 971 AC 102 was previously input to generate MFT 31.

    • Any Innocent Spouse claim with a CI freeze (-Z/Z-) requires contact with CI to determine if the taxpayers can be contacted. If CI agrees contact with the taxpayers can be made, continue screening but do not mirror the module. Note on ISTSR Input Record the module will not be mirrored.

25.15.15.2.1.1  (03-21-2008)
Modules Requiring Additional Actions Prior to Mirroring

  1. Modules requiring additional actions prior to mirroring are:

    1. Modules with a credit balance. The credit balance must be resolved prior to mirroring the module. See IRM 25.15.15.8. .

    2. Modules with an unresolved unpostable condition. The unpostable condition must be resolved prior to mirroring the module. See IRM 25.15.15.7.

25.15.15.2.1.1.1  (03-21-2008)
Open AIMS

  1. If there is an -L freeze refer to IRM 25.15.7.5.3.1 to determine if the claim will be worked by the Cincinnati Centralized Innocent Spouse Operation (CCISO) or shipped to Field Examination or Appeals. If the case will be shipped out, the module will not be mirrored. Modules can’t be mirrored if there is an -L freeze on the module.

  2. If the claims will be worked by CCISO, contact the appropriate campus AIMS coordinator using secure Email to request input of TC 421. Exam has agreed to release the freeze so the module can be mirrored. The campus codes are located on the bottom right-hand corner of the CC AMDISA screen.

    Note:

    If a statutory notice of deficiency (SND) has been issued and eight weeks or less remain for the taxpayer to petition the Tax Court from the SND, Examination will not reverse the -L freeze so you will have to wait until the SND defaults for the -L freeze to be removed. Update the Innocent Spouse Tracking System (ISTS) to stage 06 with activity "AIMS" .

  3. A listing of AIMS coordinators for the 10 campuses is located on the AIMS web site at http://sbse.web.irs.gov/AIMS.

  4. A TC 421 should post in 3 weeks (unless the Examination case is ready to close, then it will take longer) and automatically release the -L freeze. Monitor for this release and proceed with mirror module procedures. As long as you see a PN/AP TC 421 you can continue with the mirror module process.

  5. Examination will monitor the account for 8 weeks waiting for a TC 402 to post to the MFT 30 module. If the TC 402 has not posted, Examination will contact CCISO via secure email for a follow-up. Once posted, they will re-input TC 420/424 (-L freeze) on the joint MFT 30 module.

25.15.15.2.1.1.2  (03-21-2008)
Open OIC

  1. Modules containing an open TC 480 (-Y freeze) indicate a processable pending OIC filed by the RS will be mirrored without making contact with OIC.

  2. Modules containing an open TC 780 (-Y freeze) indicate an allowed OIC for the NRS will not be mirrored during First Read. Note in the upper right corner of the ISTSR Input Record "not mirrored."

  3. If a determination to allow or partially allow the Innocent Spouse claim is made by the Full Scope Technician, contact will be made with OIC to coordinate mirroring and closing actions. If the determination is to disallow the claim, no mirroring will be done.

25.15.15.2.1.1.3  (03-21-2008)
Open Bankruptcy

  1. Modules containing an open bankruptcy for the NRS, TC 520 with closing codes 60-67, 81, 83, or 85-89 will not be mirrored during First Read. Continue screening. Note in the upper right corner of the ISTSR Input Record "not mirrored."

  2. If a determination to allow or partially allow the Innocent Spouse claim is made by the Full Scope Technician, contact will be made with Bankruptcy to coordinate mirroring and closing actions. If a determination is to disallow the claim, no mirroring will be done.

25.15.15.2.2  (03-21-2008)
Posting TC 400

  1. This will post systemically due to the TC 971 AC 145.

25.15.15.2.3  (03-21-2008)
Posting TC 402

  1. When the M- freeze is present, take the following actions using the claim received date for all REQ 77 transaction date entries.

    1. Verify there is one joint MFT 30 module and one MFT 31 module for each spouse.

    2. Input TC 972 AC 145 to the joint MFT 30 module and both MFT 31 modules. This will post the TC 402 on the modules. A TC 971 AC 132 will systemically post to the joint MFT 30 module only. This will generate a TC 604 credit, creating a zero balance.

    3. Input TC 972 AC 065 to the joint MFT 30 modules and the NRS's MFT 31 module. The date will be the same date as the TC 971 AC 065. Use a PDC of 1 cycle. This will reverse the L- freeze on the joint MFT 30 and the NRS's MFT 31 module.

    4. Reverse the TC 130 on the NRS's entity module if it was input as a result of the Innocent Spouse claim and all additional Innocent Spouse claims have been mirrored or closed.

25.15.15.2.4  (03-21-2008)
Purging First Read Inventory

  1. Once all documents and taxpayer responses have been received or 45 days have elapsed, the case is ready to be purged from First Read inventory and forwarded to Full Scope for a determination.

  2. Prior to purging the case:

    1. Update ISTS to Stage 05 and appropriate team number.

    2. Note the IS case history sheet with the date and your initials.

    3. If cases are in Stage 06, close appropriate IDRS control.

25.15.15.3  (03-21-2008)
Full Scope

  1. If MFT 31 mirror modules were created, an IDRS control must be established on the RS’s MFT 31 module. MFT 30 will not be controlled because the module was zeroed out and closed as part of the mirroring process.

  2. If the MFT 30 module was not mirrored due to the exceptions, the IDRS control will be on the MFT 30 module.

  3. When granting full or partial relief and the module has not been mirrored, follow procedures in IRM 25.15.15.2 for mirroring the modules. Some modules have conditions prohibiting mirroring. See IRM 25.15.15.2.

25.15.15.3.1  (03-21-2008)
Relief Allowed in Full and No Refund Due

  1. When relief has been allowed in full and there is no refund to be issued, the case will be closed by using the claim received date as the transaction date for all REQ77 inputs. Exception: when inputting the TC 972 AC 110 use the same date as the TC 971 AC 110 date.

    1. Input TC 971 AC 131 on the RS’s MFT 31 module. Enter " 98" as the XREF-MFT. In Remarks enter "NSD - IS claim " This will generate a TC 604 (credit) to zero out the module balance.

      Note:

      If the module is completely mirrored and there is no balance due or is in credit status, do not input TC 971 AC 131 when granting relief (full or partial) because it will go unpostable. Verify there is no balance due by checking IDRS command code INTST.

      Note:

      For a TC 971 AC 131 to post there must be an L- freeze code. If no L- freeze code, input TC 971 AC 065 with no PDC, TC 971 AC 131 with a PDC of 1, and TC 972 AC 065 with a PDC of 2.

    2. Input TC 972 AC 065 (PDC of 1) on the RS’s MFT 31 module to release the L- freeze. See IRM 25.15.2.4.2(7) and (8) for additional information for what date to enter.

    3. Input TC 972 AC 110 on the RS’s MFT 31 module with a cross reference to the NRS’s TIN. Use a PDC of 1. The TC 971 AC 110 causes the MFT 31 modules to point to each other. Since the RS has been relieved of this debt, this is no longer required.

    4. Input TC 972 AC 110 on the NRS’s MFT 31 module with a cross-reference to the RS’s TIN.

    5. Input TC 290 .00 on the RS’s MFT 31 module to close the case. Use a PDC of 2 cycles. Follow IRM 25.15.9.1.23 for complete closing instructions.

    6. Note the IS case history sheet with the date, your initials and all actions taken.

    7. Update ISTS to Stage 30.

    8. Note on ISTS Input Record, "Keep in Team" .

    9. Close IDRS control base.

    10. Send case to Files.

25.15.15.3.2  (03-21-2008)
Relief Allowed in Full and Refund Due

  1. When relief has been allowed in full and there is a refund to be issued, the Form 3465, Adjustment Request, will be sent to the Processing Team for resolution. The Full Scope Technician will:

    1. Prepare Form 3465 requesting the Processing Team transfer offset or manually refund specific credits/payments.

    2. Update the IDRS control 0297500201.

25.15.15.3.3  (03-21-2008)
Partial Relief Allowed and No Refund Due

  1. When relief has been allowed in part (true partial, see IRM 25.15.9.1.6(2) for definition) but the Full Scope Technician can determine there are enough credits and payments to fully satisfy the RS’s liability, the case will be closed in Full Scope.

  2. See IRM 25.15.15.3.1. for closing the case except in Step 1 use "96" as the XREF-MFT when inputting TC 971 AC 131 to generate a TC 604 (credit) to zero out the module. This indicates relief was allowed in part but the RS’s liability has been fully satisfied.

25.15.15.3.4  (03-21-2008)
Partial Relief Allowed with Refund or Balance Due

  1. When relief has been partially allowed, the case will be sent to the Processing Team for resolution. The Processing Examiner will make a tax adjustment to the RS’s MFT 31 module for the tax, reversed the Earned Income Tax Credit (EITC) and penalties the RS is no longer responsible for. The NRS’s MFT 31 module will not be adjusted. The Full Scope Technician will:

    1. Prepare Form 3465, Adjustment Request, requesting the Processing Team adjust the RS’s MFT 31 module to show the corrected liability as listed below.

    2. Provide the Processing Examiner with the amount of relief allowed for each of the following transactions: TC 150, TC 290, TC 300, TC 765, TC 240, TC 360, and TC 350. A TC 806 must be addressed if it is to be reversed or reduced as part of the relief.

    3. The remarks section of Form 3465 should be used to provide all adjustment information.

    4. Address all payments and credits to be refunded or offset.

    5. Note the IS case history sheet with the date, your initials, and all actions taken.

    6. Update IDRS and ISTS to Stage 27.

    7. Update the IDRS control base.

    8. Forward case to the Processing Team.

25.15.15.3.5  (03-21-2008)
Relief Disallowed

  1. When relief has been disallowed, Full Scope will close the case by taking the following actions:

    1. Input TC 972 AC 065 on the RS’s MFT 31 module to release the L- freeze. Refer to IRM 25.15.2.4.2(7) for instructions on the correct transaction date to use.

    2. Input TC 290 .00 on the RS’s MFT 31 module to close the case.

    3. Note the IS case history sheet with the date, your initials, and all actions taken.

    4. Update ISTS to Stage 30.

    5. Close IDRS control base.

    6. Send case to Files.

      Note:

      The Collection Statute Expiration Date (CSED) will be systemically extended for the number of days between the TC 971 AC 065 and the TC 972 AC 065.

25.15.15.3.6  (03-21-2008)
Barred Statute One Signature (BSOS)

  1. As recently as 1998, deficiency assessments sometimes were made on joint accounts based on one signature on a waiver of assessment form if certain criteria were met. This procedure is no longer allowed. Some of these erroneous assessments against the non-signing spouse cannot be reassessed correctly and must be abated. These cases are referred to as "Barred Statute One Signature (BSOS)" . These barred statutes are attributable to a policy decision and not to any employee actions or lack of actions. In lieu of completing Form 3999, Statute Expiration Report, a copy of the memorandum in Exhibit 25.15.9-1 must be completed, approved by the manager, and placed in the administrative file.

  2. If the module has been mirrored, the case will be closed by Full Scope following the procedures listed below:

    1. Input TC 971 AC 131 on the RS's MFT 31 module. Enter 98 as the XREF-MFT. In "Remarks" enter NSD-IS claim. This will generate a TC 604 (credit) to zero out the module balance.

    2. Input TC 972 AC 065 with a PDC of 1 on the RS's MFT 31 module to release the L- freeze. See IRM 25.15.2.4.2(7) for additional information for what date to enter.

    3. Input TC 972 AC 110 on the RS's MFT 31 module with a cross reference to the NRS's TIN. Use a PDC of 1. The TC 971 AC 110 causes the MFT 31 modules to point to each other. Since the RS has been relieved of this debt, this is no longer required.

    4. Input TC 972 AC 110 on the NRS's MFT 31 module with a cross-reference to the RS's TIN.

    5. Input TC 290 .00 on the RS's MFT 31 module to close the case. Use a PDC of 2 cycles. Follow IRM 25.15.9.1.3 for complete closing instructions.

    6. Notate the IS case history sheet with the date, your initials and all actions taken.

    7. Update ISTS to Stage 29 with activity "BSOS" and Stage 30 with activity "ACCTCORR" .

    8. Close IDRS control base.

    9. Send case to Files.

  3. If the module was not mirrored follow procedures in IRM 25.15.9.1.4.

25.15.15.4  (03-21-2008)
Processing Team

  1. The procedures in this IRM are only for mirrored modules. Follow IRM 25.15.9 for procedures involving only 1 MFT 31 module or a NMF module.

  2. Processing Team will close the partially allowed claims when there is still a balance due for the RS or a refund is or may be required.

  3. Processing Team will process Form 3465, Adjustment Request, on fully allowed claims with a refund due to the RS.

25.15.15.4.1  (03-21-2008)
Partially Allowed Claims

  1. You can now make a tax adjustment to reduce the liability for one taxpayer while leaving the other taxpayer fully liable for the balance due.

  2. Full Scope will prepare Form 3465, Adjustment Request, requesting a tax adjustment be made to the RS’s MFT 31 module. Full Scope is responsible for providing all tax, return related penalty, withholding credit transaction codes and amounts to be adjusted.

  3. All Processing Examiners can make these adjustments unless the module contains a restricted TC 340. If a restricted TC 340 exists, it must be addressed by a senior technician. Refer to IRM 25.15.9.1.14 for additional information.

    Note:

    Do not address computer generated penalties. Unrestricted penalties (TC 166, 276, 176) will adjust systemically with your tax adjustment. You must address restricted failure to pay and estimated tax penalties (TC 160, 270, 170).

  4. All closing transactions will be made to the RS’s MFT 31 module. To adjust a partially allowed claim: all closing transactions will be made to the RS's MFT 31 module. If RS is entitled to a refund, input credit transfer or manual refund as appropriate. For additional information on manual refunds, See IRM 25.15.15.4.3. after refund posts, or if no refund due, take the following actions on RS's MFT 31 module:

    1. Prepare Form 11272, Associable IDRS Input Document Label, to adjust the RS’s MFT 31 module. Use the figures provided by Full Scope.

    2. Input the adjustment on IDRS using CCREQ54. Use Source Code (SC) 2, Reason Code (RC) 097/098 and Hold Code (HC) 0 on the adjustment. Use of this HC will allow the RS to receive an adjustment notice with the corrected balance due. Research the module to determine if a Priority Code (PC) is needed on the adjustment.

    3. Use Blocking Series 05 and re-file the original document.

    4. Input TC 972 AC 065 on the RS’s MFT 31 module to release the L- freeze. Use a PDC of 1 cycle.

    5. Staple Form 11272 to the Form 3465 and keep with the case file.

    6. Note the IS history sheet with actions taken, date, and your initials.

    7. Close the IDRS control base.

    8. When all closing actions have been completed, send the case to Files.

    Note:

    The CSED will systemically update if the transaction date on the TC 972 AC 065 is later than the posted TC 971 AC 065. The CSED extension applies to claims under IRC section 6015(b) or (c). The CSED will be extended for the number of days between the TC 971 AC 065 and the TC 972 AC 065.

25.15.15.4.2  (03-21-2008)
Mirrored Payments and Credits

  1. Any payment or credit without a designated payment code of 31 posting to a MFT 31 mirror module with an unreversed TC 971 AC 110 will be systemically cross-referenced to the related mirror module.

  2. Credits and payments transferred in or out of the module should be credited or debited, as appropriate, on the cross-referenced module systemically.

  3. The mirrored credit or debit should post systemically to the cross-referenced spouse’s MFT 31 mirror module as an adjustment. See below for an example of how this will work.
    Credit - TC 290 .00, TC 766 $XXX.00 Credit Reference Number (CRN) 337-
    Debit - TC 290. 00, TC 767 $XXX.00, CRN 337
    The transaction date will match the payment date on the cross-referenced MFT 31 module.

    Example:

    John and Mary Newcomb filed a joint 2005 balance due tax return. Mary filed an Innocent Spouse claim on 3-24-2008. The claim is qualifying and First Read input the transaction codes to mirror the module.

    Before the TC 971 AC 065 and the mirroring transaction codes can post, Mary’s refund from her 2007 return claiming single, head of household or married filing separate is offset to the joint 2005 module on 3-28-2008. This payment is mirrored to both MFT 31 modules along with the rest of the MFT 30 transactions.

    Mary’s MFT 31 module shows a TC 706 credit dated 03282008 for $1,000.

    John’s MFT 31 module shows a TC 706 credit dated 03282008 for $1,000.

    The Processing Examiner will reverse Mary’s TC 706 credit with a TC 701 and post it back to Mary’s 200512 module as a TC 821 refund.

    When Mary’s MFT 31 credit transfer posts, John’s MFT 31 module will post a TC 290 .00, TC 767 $1,000 CRN 337 (debit)

    Note:

    If a systemic debit or credit does not post to either MFT 31 then a manual adjustment may be required.

  4. Payments posting to one MFT 31 module will not mirror to the cross reference MFT 31 module for one cycle. TC 706 takes two cycles to mirror to the cross reference MFT 31 module.

    Note:

    TC 806 should systemically mirror, a TC 807 will not systemically mirror.

  5. The TC 971 AC 110 should remain on both taxpayers’ MFT 31 mirror modules until one of the modules reach zero or credit balance. Once either of the modules reach zero balance, both TC 971 AC 110 transactions should be reversed using TC 972 AC 110 and the appropriate cross-reference TIN.

25.15.15.4.3  (03-21-2008)
Manual Refund of TC 670 Payments

  1. TC 670 payments to be refunded as part of the Innocent Spouse Claim determination will require a manual refund. Use existing procedures to prepare a manual refund, see IRM 25.15.9.1.18.

  2. Additional steps must be taken to correct the cross-referenced MFT 31 module. A manual refund (TC 840) will not cause a systemic debit of the cross-referenced MFT 31 payments.

  3. Tax adjustments must be made to the cross-referenced MFT 31 to debit the module for each payment, or part of a payment included in the manual refund.

    Example:
    A $100.00 payment dated 6-25-2005 is manually refunded from the secondary spouse’s MFT 31 module.

    On the primary spouse’s MFT 31 mirror module, input a CCREQ54 adjustment. Input TC 290 .00, CRN 337 $100.00-, Return Processable Date (RPD) 06-25-2005.

    Note:

    For every TC 670 payment refunded from one MFT 31 module, a separate REQ54 adjustment must be made to the other MFT 31 module. The RPD must match the received date of the TC 670 payment being debited/reversed. Also, a CRN 337 can be input as a positive or negative figure. A negative figure (-) is required in these situation.

25.15.15.4.4  (03-21-2008)
Closing a Fully Allowed Claim After Issuing a Refund

  1. Monitor the account to ensure the credit transfer or manual refund posts in 2-3 weeks, then close the case following the steps in See IRM 25.15.15.3.1.

25.15.15.5  (03-21-2008)
Forgery or Duress

  1. When it has been determined that the RS is not liable because he/she did not sign the joint return and there was no tacit consent, or it was signed under duress, leave the module mirrored. Zero out the RS's module by following the instructions See IRM 25.15.15.3.1.. If RS was the secondary taxpayer, then remove RS's name and correct the filing status on the NRS's ENMOD.

  2. If RS was the primary taxpayer, then remove the NRS's name and correct the filing status on the primary taxpayer's ENMOD.

25.15.15.6  (03-21-2008)
Reversing a Mirrored Module

  1. Verify that the module should be reversed. To reverse a mirrored module you must input the transactions on MFT 30 and wait until all transactions posted before inputting transactions to MFT 31.

  2. On the MFT 30 module input:

    1. TC 971 AC 065 with the XREF TIN of the RS.

    2. Two TC 971 AC 104 with the appropriate TIN.

    3. TC 972 AC 132 (the date of the TC 972 AC 132 should be the same as the original TC 971 AC 132) using a PDC of 1 cycle. This will generate a TC 605 (debit). This reopens the module balance on MFT 30.

    4. Verify all transactions listed above have posted.

  3. After verifying all required transactions listed above posted to the MFT 30 module, input the following transactions on both MFT 31 modules,

    1. TC 972 AC 104’s with appropriate X-reference.

    2. TC 971 AC 065 (if there is no L- freeze). This is required before the next transaction listed below will post.

    3. TC 971 AC 131. This will adjust the MFT 31 modules to zero.

    4. TC 972 AC 065.

    .

25.15.15.7  (03-21-2008)
Resolving Mirroring Unpostable Transaction Codes

  1. If the mirroring process should be stopped (tried to mirror a module that will not mirror because it is an exception to mirroring, etc.) close the mirroring monitor control base and update the case file. Prepare Form 3465, Adjustment Request, if the module needs to be set-up on NMF because it can’t be set up on MFT 31.

  2. To determine which transaction code went unpostable, match the Document Locator Number (DLN) on the listing with IDRS Command Code TXMOD.

  3. If the unpostable transaction code occurred in another campus, you need to input @ with the campus code on IDRS Command Code UPTIN.

  4. To determine the cycle the transaction code went unpostable, look up IDRS Command Code UPTIN, there is a sequence number of the unpostable transaction code under the taxpayer’s TIN. The first six numbers identifies the cycle the transaction code went unpostable.

    Example:

    200532002672 means the transaction code went unpostable in cycle 200532. The posting cycle next to the DU on IDRS Command Code TXMOD is the cycle it came back to TXMOD, not the actual cycle it went unpostable. If the TC 400 posted in cycle 200532 and the TC 971 AC 145 shows a sequence number on UPTIN of 200532, you know the PDC was not input. Re-input the TC 971 AC 145, but you no longer need a PDC.

  5. If you have an unpostable transaction code, verify that the Collection Statute Expiration Date (CSED) is still opened. You cannot correct an unpostable transaction code if the CSED has expired. A TC 608 will be posted when the CSED expires.

  6. Verify all mirror transactions codes have posted correctly, not just the unpostable transactions. Start at the TC 971 AC 065 and work down the IDRS Command Code TXMOD to ensure all prior required transaction codes have posted.

    Note:

    If a TC 402 will not post, you cannot move module to NMF, you will have to reverse the mirrored module, See IRM 25.15.15.6..

  7. If the L- freeze was released in error, it needs to post back to the module until the balance due is gone.

  8. Do not re-input transactions unless you know why they went unpostable.

  9. Note the correction and reason for the unpostable on your weekly unpostable listing.

25.15.15.7.1  (03-21-2008)
Common Mirroring Unpostable Transaction Codes

  1. Listed below are the most common mirroring transaction codes that go unpostable, and procedures on how to correct them.

  2. TC 971 AC 104

    1. Check for exceptions to mirroring, -L, -V, -W, -Z or Z- freezes on IDRS Command Code TXMOD, and previous TC 971 AC 10X prior to 2005, etc

    2. Check IDRS Command Code IMFOLT and look at the name line and secondary spouse’s TIN, follow procedures on exceptions to mirroring if invalid secondary TIN. If secondary spouse’s TIN is missing, input TIN on IDRS Command Code ENREQ and wait to see if it is valid before mirroring. Look for errors with the name line, e.g. spacing. Correct the name line prior to mirroring.

  3. TC 971 AC 065, TC 972 AC 065, TC 971 AC 110, TC 972 AC 110, TC 971 AC 145, and TC 972 AC 145:

    1. Ensure both TC 971 AC 104's have posted.

    2. Look at posting cycle of TC 402 and compare with your transaction code. You may need to update IDRS Command Code UPTIN for the cycle the transaction unposted.

    3. Look for possible invalid secondary TIN that was validated. This can be identified by SSA name controls not matching the current name control on IDRS Command Code INOLES. Nothing will post after a TC 400, if invalid. Stop trying to mirror. Forward the case to Processing.

  4. TC 971 AC 131 will not post if there is no balance due or if there is no TC 971 AC 065 posted. It may be necessary to re-input TC 971 AC 065, then input TC 971 AC 131 with a PDC of 1 and a TC 972 AC 065 with a PDC of 2.

  5. TC 972 AC 065 may have already posted. If there is no open L- freeze on the account the TC 972 AC 065 will not post. Ensure there is no data input error and the XREF TIN is correct.

  6. See the table below for common unpostable codes for mirroring, the explanation and the resolution:

    Unpostable Code Explanation Resolution
    151 159-0 Secondary taxpayer is deceased or has an invalid TIN Check IDRS Command Code INOLES for SSA name controls under the secondary taxpayer, if the TIN does not have an " *" , but the name control is valid per SSA, it was manually validated. The account will mirror but nothing will post after the TC 400.
    168 Name Mismatch TIN on TC 972 AC 065 must be corrected to match the TC 971 AC 065 you are trying to reverse.
    171-2 TC 971 AC 131 attempting to post to a module without an L- freeze Input TC 971 AC 065, TC 971 AC 131 with a PDC of 1, and TC 972 AC 065 with a PDC of 2.
    186-0 Post delay problem Need to look at the cycles on IDRS Command Code UPTIN to ensure the transaction codes posted in order.
    189-5 Item doesn’t exist, e.g. TC 972 AC 131 trying to post when there is no balance due Verify there is no balance due by checking IDRS Command Code INTST.
    197-5 TC 400 or TC 971 AC 145 tried to post to a module with a credit balance Resolve credit balance.
    Note: Determine if the transactions should be re-input. If the case is progressed enough, it may not be necessary to mirror the modules. Check IDRS Command Code ISTSR. Close the mirroring monitor control base and update the case file. Example: If it is close to the end of the 90-day period when a case was disallowed for an underpayment, there is no need to mirror the module. Another example would be if we are granting full relief and the MFT 31 module for the NRS was established, there is no need to try to get the MFT 31 module for the RS to post because you would later input a false credit to relieve him/her of the liability.

25.15.15.8  (03-21-2008)
Resolving Credit Balance

  1. Check for payments, was the taxpayer making regular payments or a very large payment and the account is now full paid? If yes, look for another balance due and transfer the money as long as the payment is less than the balance due. Transfer credit to the oldest remaining balance due.

  2. If IDRS Command Code INTST shows the module is not full paid, prepare Form 3465, Adjustment Request, and request that the accruals be forced to post to the module. To force accruals to post:

    1. on unrestricted modules, input TC 290 .00, priority code 5 and hold code 4.

    2. on restricted modules (-I freeze), manually compute and input penalty and interest, if applicable, see exhibit 25.15.9–7, Posting Accruals on Restricted Modules.

    3. on module in IDRS Status 23, use IDRS CC MFREQC.

  3. If the payment on MFT 30 was intended for that tax year but the balance due is on MFT 31, transfer the payment to the MFT 31 module.

    Note:

    When transferring payments or overpayments as a result of an adjustment, the Refund Statute Expiration Date (RSED) must be taken into consideration. If the RSED has expired the money cannot be transferred to another module. Move the money to Excess Collection.


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