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 taxpayer's 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 taxpayer's 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.