Do not change the address on CC ENMOD. If approval to issue the refund is received, input a Manual Refund using BPI 8 or 9. BPI (2) indicates that TOP should bypass offsets to debts owed by the secondary spouse and may offset to any debts owed by the primary spouse. The other spouses manual refund must include a BPI 0, no Blocking Series 9, and should be issued in the joint nameline. Therefore, do not disclose this information to the taxpayer. The transaction date is the received date of the Form 8379. Washington recognized same-sex marriages starting in late 2012. TC 766(s) that are rejected in whole or in part by Bureau of the Fiscal Service are output on a weekly Bureau of the Fiscal Service TC 766 Reject Listing and provided to the TOP Liaison Office for resolution. Territories of Guam and Puerto Rico are also community property jurisdictions (Worked in Philadelphia International). Refer taxpayer to TOP Call Center at 800-304-3107, TDD 8008778339, for agency address and phone number. Levy proceeds that result in offsets are not considered misapplied payments. Do not transfer the call when a Form 4442/e4442 is required. You can tell the taxpayer: IRS no longer maintains child support or other TOP debts. BPI 7 generates on all refunds when no other condition or manual input results in the use of another BPI and the creditor agency has obtained relief from the automatic bankruptcy stay. Tax offsets appear on a tax module as: Transaction Code (TC) 820, manual credit transfer, TC 896, computer-generated tax offset from IMF to BMF, Individual Retirement Account File (IRAF) or Shared Responsibility Payment (MFT 35) without an Agency/Sub-Agency (AG/SA) Code. Once the unpostable conditions are corrected, the formula to Net the TOP Offset amount is: The OTN must be the same for all these transactions when computing the net TOP offset amount. 5) Taxpayer claims his/her refund was less than expected, amount disagrees with TC 846/840. A review of their account shows a prior year tax liability of $500. Honor an Offset Bypass Refund (OBR) hardship request. The credit balance on the module must be held so the taxpayer can reply to the no consideration letter with the information needed to make the return processable. (09) Valid Request Bureau of the Fiscal Service considers the TC 766 request as valid but for a lesser amount. See IRM 21.4.6.5.7.1, Allowable TOP Offset Reversals, for levy proceeds. For all other programs, resolve the credit as appropriate for your case (e.g. Bypass TOP offset for all secondary TIN debts except child support. TOP offsets must be reversed for condition 2 scrambled SSN cases. For late filed returns with pre-paid credits, you must figure the 2-year period from the date the tax is considered paid. This causes an UPC 134 RC 03. If an active combat zone case involves a Federal tax debt. Explain to the taxpayer that our records show the Form 8379 was not filed with the return. IRS sent Letter 916C Claim Incomplete for Processing; No Consideration. Do not use line number 4. Consequently, the name control does not match master file. If an agency refund has occurred, see IRM 21.4.6.5.12.1, Input of TOP Offset Reversals Reference Number (RN) 766 with OTN. If the indicator on CC TXMOD is a "0" , the debt indicator on CC INOLE will be an "N" or an "I" . Inform the injured spouse that his or her refund can be offset for any past-due child support or other TOP debts that he or she may owe. TC 971 AC 599 with a Type 1,2,3 or 4, represents a manual input of an erroneously deleted TC 899 Type 1,2,3 or 4 transaction. Verify that the corrective action is accurate before closing, Close your case using Document Type-Internal Transcript, IDRS Cat Code IRRQ, Program Code 40000. 11-2016), issue the Injured Spouse's portion of the refund in "one name only" unless line 11 on the form is checked to "Issue in both names" . Advise the taxpayer we are returning their Form 8379, because they did not respond to the authentication letter we previously sent. Refer to Document 6209, Section 5 - Debtor Master File (DMF), for agency listing. When a manual reversal request is submitted (identified as PNDMRR in the IDRS control base activity), you must wait for the TC 700 credit to post to the account when a TC 899 Type 3 is present, see IRM 21.4.6.4.2.10, TC 899, Reversal or Agency Refund of TOP Offset. Advise taxpayer to allow five calendar days for direct deposit or 4 weeks for paper check to arrive. You must ensure all unpostables (TC 898 or TC 899 types 1, 2, 3 or 4) are resolved before reversing the TOP offset amount for TOP transactions with the same OTN. A manual refund is required on all injured spouse refunds of tax offsets to prevent the credit from offsetting back to the same tax debt. This server has a login program control. If the taxpayers filing status is other than Married Filing Joint (MFJ) and filed a zero or $1 return and there is no credit on the account, close your case using Document Type-Internal Transcript, IDRS Cat Code IRRQ, Program Code 40000. UPC 342, RC 07, occurs when a TC 767 with OTN is greater than the net TC 76X with same OTN. The domicile of a person does not change merely because of entry into the military and being stationed in another jurisdiction. Bureau of the Fiscal Service initiates refund offsets to outstanding federal agency debts or child support, State Income tax obligations and Unemployment Compensation debts. If the allocation is correct, advise the taxpayer how the allocation was computed. Input the TC 770 for zero on the last adjustment. Review procedures in IRM 10.5.1.6.7.2 , Answering Machine or Voice Mail, before leaving a message on a taxpayer's or authorized representative's answering machine or voice mail. Have the manual refund document signed by the authorized approving official. It generates on the first refund, (TC 846) issued after the reversal of a TOP offset to a secondary TIN's debt. The availability date of the overpayment is determined by the payment(s) and/or credit(s) of which it is comprised. In all instances related to injured spouse if you are unable to determine the actual received date of the return use the TRDBV date. Do not attempt to reverse the offset, merge the case without regards to the TC 898. A letter is not needed for Community Property or Non-Community Property Short Cut (SC) 1. Refer to IRM 21.6.4.4.17.1, Recapture of First-Time Homebuyer Credit (FTHBC), for guidelines on the recapture. A UPC 134, RC 05, occurs when a TC 766 with an Offset Trace Number (OTN) attempts to reverse a TC 898 with the same OTN, and the 23C date of the offset is more than six years from the date of reversal. However, IRS systems did not accurately account for the change in law and erroneously offset refunds/overpayments from the taxpayers individual tax return to their LLC tax period(s). TC 971 AC 598 is a manual input of a TOP offset record which is used when the TC 898 has been deleted in error. Payments can be identified by a TC 290 .00 with CRN 272 on the tax year 2021 module. The Fiscal Service's role in child-support enforcement is limited to the operation and information about the Treasury Offset Program whereby, certain federal payments, including federal tax refunds, can be offset to collect delinquent child support obligations. If the injured spouse is not responsible for any part of the debt which offset, always reverse the injured spouse's share of the refund when working a Form 8379, Injured Spouse Allocation. An injured spouse refund will be issued as requested on the original return unless an offset reversal (TC 898) or Form 5792, manual refund (TC 840), is involved. Annotate the taxpayers account with a Case Note with the information obtained. 16) Taxpayer says Form 8379 was filed after offset and no refund was received. Input a TOP offset reversal to reverse the net offset amount remaining on any/all tax modules. Injured Spouse TOP offset reversals may be input with a HC 3 if the refund will be issued in both names. Injured spouses portion of estimated tax payments. These shortcuts are applicable to California, Idaho and Louisiana Federal tax debt only, all conditions must be met before the shortcut can be used. A TC 520, with closing code 60-67, 81, or 83- 89 on the account with a transaction date prior to 10/17/2005, generates a BPI 3 on refunds that are issued systemically. UPC 342, RC 05, is a BMF unpostable code which occurs when TC 766 with OTN fails to find a previously posted TC 898 with the same OTN. Manual refunds will be input using the normal manual refund credit interest rules. If calls are received or you have correspondence regarding an account with a TC 898 with an Agency ID of XX and an Agency Site ID DF or PF. The debtor TIN (primary or secondary) will be shown as XREF-TIN. This prevents a TOP offset to any debts owed by the primary filer. The IRS mission is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. If the Form 8379 is filed with the original return and the tax period being worked is in zero or debit balance with no math error. Bypass TOP offset for primary Taxpayer Identification Number (TIN) debts. If there is no DEBTOR-TIN shown, the taxpayer with the primary TIN is the debtor. 2) Taxpayer's overpayment is being held by EXAM (-L or -A freezes) pending review of his/her tax return, AIMS status is 08 or less and no EITC is involved, 3) Taxpayer's overpayment is being held by EXAM (-L or -LE freezes) pending review of his/her tax return, AIMS status is 08 or less and EITC is involved, 4) Taxpayer's overpayment is being held by EXAM (-L or -LE freezes) pending review of his/her tax return. If Married Filing Joint Federal tax debt is the only tax debt owed (by the same two spouses) and the debt is more than the existing overpayment. blocking series 00 if the original return is attached to the allocation or blocking series 05 if the original return is not attached), see IRM 21.5.3.4.6.3, No Consideration Procedures. If the DEBTOR-TIN was present and filed with the secondary spouse's TIN, the offset would have been to the secondary spouse's debt. (03) Invalid Reversal Amount Amount is not equal to the TOP offset amount. If a taxpayer calls and wants to update their address after filing Form 8379, refer to IRM 3.13.5.49, Updating Address Records for instructions. Use activity code IS-PN-ERS. CC RFUND has a field entitled "BYPASS INDICATOR" . A combat zone C Freeze generates a BPI (4) on a TC 846 issued from that module. This includes manual refunds from joint accounts issued in one name only. Bureau of the Fiscal Service cannot regenerate another TC 898 or TC 899 transaction when it has been erroneously deleted. Injured Spouse cases originally worked and closed in Philadelphia, send the Form 4442 to Memphis Accounts Management. For returns previously closed by, Philadelphia, send 4442/e4442 to Memphis. The term husband and wife mean two individuals lawfully married to each other. Advance payments are not subject to reduction or offset. Remarks must also reflect which tax module the TC 520 is on and No TC 521 is pending. The American Rescue Plan Act of 2021 allows the taxpayer "subject to income limitations," to exclude $10,200 (MFJ - $10,200 per spouse) of Unemployment Compensation from income for tax year 2020. 2020 Recovery Rebate Credit: Must file a 2020 tax return to claim, if eligible. Most of refunds are canceled for the original amount issued. See IRM 21.4.6.5.10, Allocation of Injured Spouse Form 8379. TC 896 without an AG/SA code is not a DMF offset. The debt may be activated, inactivated or deleted within TOP before a refund is issued. Refer to IRM 21.4.6.4.2.11, Netting TOP Offsets and Reversals, to determine the amount of offset available for reversal prior to processing a full account back out to put the account into debit balance. A lot has changed about the way the federal government - and the IRS, in particular - operate since early 2020. . Use the name line of the year the EIP was determined. Do not adjust if within IRS tolerance guidelines per IRM 21.5.1.4.12, Tolerances. Your Lead Tax Examiner must contact Bureau of the Fiscal Service at 8003043107, TTD 8662970517 Monday through Friday from 7:30 AM to 5:00 PM CST, to determine if a TOP liability exists for the primary TIN or the secondary TIN, if it is a joint return. After preparing this form, per the instructions on the form, return it to the liaison and the procedures will be initiated. If the non-debtor spouse resubmits the Form 8379 with required documentation for Appeals consideration during this period, AM may reconsider its rejection of the allocation before forwarding the new Form 8379 to Appeals. To determine the appropriate campus, use the 8th and 9th position of the RSN. You must take all transactions; posted or unposted, into consideration. Figure the injured spouse percentage of EITC by dividing the injured spouses new separate EITC by the sum of the EITC for both spouses and multiply the percentage by the amount allowed on the joint return. Process the return with a new DLN, BS 920929, before working the allocation. TC 150 is not blocked 92 and an ELF return was filed. 15) Taxpayer says Form 8379 was filed after offset and no refund was received. Follow the message prompts when you call. If the jointly filed claim on Form 1040, U.S. Notate on CIS that Insolvency did not give approval for a refund and that the injured spouse has been instructed to contact Insolvency. The total interest payment of $47.49 ($46.83 + $0.66) was then offset with TC 898. Satisfy a balance due on a tax return that posted after the return which created the offset; this includes multiple year filings where an overpaid return(s) posts before a balance due return(s). When the I- freeze is unresolved, the Form 8379 cannot be processed. ID Theft, Merge cases, Scramble cases etc.). For TOP Offset (TC 898) and Agency Reversal (TC 899), UPC 151 RC 0 occurs when the TC 898/TC 899 transaction returned by Bureau of the Fiscal Service has a different name control than the one used by IRS. If the tax year has ended, input a credit transfer, TC 830/TC 710, using CC ADD48. The TC 898 or TC 971 AC 598 TOP offset is dated the same as the prior posted TC 840 from which it originated. Consequently, the refund will offset, resulting in having to reverse the offset to process the Form 8379, Injured Spouse Allocation. Split the credit 50/50. See IRM 21.6.3.4.1.24.2 Advance CTC. See IRM 21.4.6.4.2.10(3), TC 899, Agency Refund of TOP Offset. Employees staffing Application 35 will not transfer calls to lower level account applications and must address all account issues in addition to the Injured Spouse inquiries listed below. See IRM 3.17.794, Refund Schedule Number Format. See IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI). To prevent an erroneous refund on an OBR, allow posting of the manual refund to release a freeze instead of manually inputting an action on IDRS to release the freeze. Quality data and guidelines for measurement are referenced in IRM 21.10.1, Quality Assurance - Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, TEGE, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support. If the freeze release occurs without a releasing transaction (e.g., due to the passage of time from the imposition of the freeze), treat the posting date of offset credit transfers as the posting date of the freeze release. 6) Taxpayer claims his/her refund was less than expected, amount disagrees with TC 846/840. This action is initiated when the taxpayer contacts IRS. A systemic offset reversal cannot be done. If the taxpayers live in a Community Property State see Note below. Form 8379 Allocation worksheets are located on SERP under Local/Sites/Other. Eligible businesses can claim up to 70% back on up to $10,000 in wages paid to employees, or a maximum amount of $7,000 per employee for each quarter of the calendar year. See IRM 21.4.6.5.8.7(2), Incomplete Form 8379 Signed or Filed with Original Return. 13) Taxpayer says Form 8379 was filed after offset and no refund was received. If the case is assigned to a CSR and you do not have access to CIS, issue 4442/e4442 to the CSR. The agency refunded the remainder of the TOP offset originating from the TC 846 dated 03/06/2012 to the taxpayer. All hardship cases transferred to App 35. There can be one or two TC 898(s) or TC 971 AC 598(s) per refund. Ensure there is no open TC 899 Type 1 unpostable. If the income data wages/withholding is not verifiable, submit an E4442 to RICS/IVO requesting a determination of the return. A3. Advise taxpayer to allow up to 8 weeks processing time from the time we receive the Form 8379. 11-2016 (MeF) and Rev. The IRS refund file transmitted to Bureau of the Fiscal Service contains both the primary and secondary Social Security Number (TIN) on a Filing Status 2 (FS2) joint refund. If the taxpayer responds to a previous Letter 105C, Claim Disallowed, or Letter 106C, Claim Partially Disallowed, research CIS for an explanation of the previous denial and explain the reason for the denial to the taxpayer. Zero out the account or math verify and adjust to the good return if one is present on the account, use HC 4. The only debt involved is TOP and/or premarital Federal tax debt owed, by the other spouse or no debt is owed. EITC, ACTC, and /or Adoption Credit) and a TC 811 is not present, do not consider the Form 8379 allocation. The OBR must be approved and processed prior to the freeze release, there are certain conditions in which a TC 840 will release the freeze code or condition. The executor or administrator must have provided a copy of their appointment. See IRM 21.4.6.5.23.2, UPC 137 or UPC 437, for TC 899 UPC 137 or UPC 437 resolution. Advise the taxpayer NOT to include a copy of the tax return with the Form 8379 nor to file it with a Form 1040-X unless changes to the tax return need to be made. See IRM 21.5.3.2(3), What Are Claims for Credit, Refund, and Abatement?. You do not need to complete the Injured Spouse Allocation Worksheet when one of the shortcut methods apply. Refer taxpayer to agency on notice. See IRM 25.15.5.2 Community Property States. IRS Free File: Prepare and file your federal income tax return for free. Send one letter to the Injured Spouse to the address on the Form 8379 and a copy to both spouses to the address of record. Contact the TOP Liaison or EEFax the request . Research to resolve the discrepancy (processing error, math errors, or other tax or TOP offset). Advise the taxpayer to allow 17 weeks processing time, unless there is an open control base; if there is an open control base advise them to allow 8 weeks from the control date. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines. IRC 6402(b) provides that a taxpayer can elect to have an overpayment applied to a future tax, once all tax and TOP debts subject to offset under IRC 6402(a), (c), (d), (e) and (f) are satisfied. The wife later files an income tax return for 2012 that claims a $500.00 overpayment. He or she may contact the TOP Call Center at 800-304-3107, TDD 800-877-8339 to determine if a debt is owed and an offset will occur. Continue to determine the refund amount depending upon the type of offset that was made. Use HC 2 for Injured Spouse cases. A manual refund is required when Box 12 on Form 8379, Injured Spouse Allocation, is checked and the address on ENMOD is different than the address on the Form 8379. If credit interest was allowed on the offset, the credit interest must also be reversed with TC 772. A Type 3 is also used to correct an account due to a BFS or IRS processing error. Suggested response: Our records show the Excess Advance Premium Tax Credit Repayment (APTC) was not allocated on Form 8379. Additionally, the Department is required to offset a taxpayer's refund as partial payment of any debt (s) reported by the following agencies: Ohio Department of Job and Family Services 11-2016) "Issue in both names" box on line 11 is checked. Input TC 807 first with HC 1, then input TC 808/809/810/811 with a PDC for 1 cycle. If all the offset is needed, reverse the entire amount. The IAT Tool is designed to research CC INOLET when the invalid indicator is present. Before reversing any offset to Office of Child Support Enforcement (Agency Codes 1 and/or 2), see IRM 21.4.6.4.2.4, Child Support TOP Offsets. Do not send a letter to the taxpayer. To the latest of these three dates, add 45 calendar days. Check for TOP offset to a debt of the spouse. If the injured spouse is the primary taxpayer and Part II, line 11, box is checked on Form 8379 (Rev. If the account requires the reversal of four or more TC 898s, and the refund will be issued in both names input all the required TOP offset reversals (TC 766) using HC 3 with the appropriate blocking series, SC 7, RC 086 and PC 8. If the account requires the reversal of three or more TC 898s, you must issue a manual., See IRM 21.4.6.5.10.6 (2) e), Issuing the Injured Spouse Refund. One adjustment will be for the original overpayment and the second adjustment will be for the ESP. See IRM 21.4.6.5.19, Re-sequence Cases. Unpostable conditions must be resolved before inputting any TOP offset reversal. For more information on FTHBC, refer to, 9) Taxpayer's overpayment is being held by CI pending review of his/her tax return, There is a -Z or Z- Freeze on the account Questionable Refund Program (QRP). An injured spouse is not the same as an "innocent spouse." Include a blank Form 8379 with instructions. If the taxpayer filed their return on or before an approved extension of time to file, use the 04/15/XXXX of the return rather than the posted Return Received Date shown on TXMOD. Injured Spouse no consideration issues Letter 916C, Claim Incomplete for Processing; No Consideration. Compute an allocation for the original offset and 50 percent for the stimulus payment. Add to the TC 898 all TC 767(s) with the same OTN. For further information, see IRM 25.15.5.4, Domicile. For tax years 2009 and 2010, the Making Work Pay Credit provides a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns. Bypass TOP offset for all primary TIN debts except child support. The question is only whether the taxpayer is legally married, i.e., was married in a state or other jurisdiction that recognizes same-sex marriage. See IRM 21.4.6.5.25, Non-Master File Child Support. California has rules to keep workplaces safe from COVID-19. Do not refer your case to CI or EXAM. Refer to IRM 21.4.6.5.9 (3), Community Property Allocation, for a list of community property states. Bureau of the Fiscal Service provides a file, with each debtors TIN, name control, and the total amount of debt owed, to the Enterprise Computing Center at Martinsburg (ECC-MTB) on a weekly basis. The OBR Significant Hardship refund should be the excess of the overpayment after all debts are paid. For any ID Theft case that cannot be reversed, refer to IRM 21.4.6.4.2.12.