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IRS Audits

Chapter 4. AIMS Processing

Section 35. Unpostable Resolution

4.4.35  Unpostable Resolution

4.4.35.1  (02-08-1999)
Overview

  1. Procedures for resolving unpostables, the overall philosophy, general concepts, and instructions are described in IRM 3.12.179, Unpostable Resolution. Procedures in this chapter contain the unpostable reason codes most frequently received in Examination along with the required resolution.

  2. The Generalized Unpostable Framework (GUF) contains transactions that attempted to post to the Master File but failed to match the respective Master File account and thus become unpostable records.

4.4.35.2  (02-08-1999)
Responsibility and Authority

  1. This chapter applies to Examination managers and individuals using the GUF to manage, assign, reassign, research, suspense, lose, and/or review IMF, BMF, EPMF, or IRAF unpostable cases.

4.4.35.3  (02-08-1999)
Unpostable Types

  1. Unpostable case closures are divided into four types.

    1. AUTO—cases closed automatically by the GUF system. Applies to all unpostable functions.

     

  2. MASS—multiple cases closed with one GUF input action, batch closures. Applies to only the Unpostable function.

  3. FILES—single case closures of obvious errors (name control and/or TIN) and single case closures based on entity type data provided on a document request by the Files function. Applies only to the Unpostable function.

  4. INDIVIDUAL—single case closures in the Unpostable, Examination, Entity Control, and Criminal Investigation and statute functions.

4.4.35.4  (02-08-1999)
Additional Research Manuals

  1. Refer to IRM 3.12.32 if you want information on SC error resolution.

  2. Refer to IRM 3.12.179 if you want information on IMF/BMF/PMF/IRAF/CAWR unpostable.

  3. Refer to IRM 3.12.166 if you want information on EPMF/IRAF unpostables.

4.4.35.5  (02-08-1999)
Statute Protection

  1. Employees must be aware of statute limitations for various tax returns. Since protection of statutes is a top priority, the unpostable listings must be carefully analyzed and good judgment must be exercised in the resolution of cases, requisition of returns and preparation of quick assessments.

4.4.35.5.1  (02-08-1999)
Category E2

  1. All unpostable cases must be screened for statute protection purposes prior to taking any resolution action. Category E2 was established to identify Examination statute cases. The E2 category includes UPC 150, 350, and 750 cases with a document code of 47 and imminent statute cases if the transaction code is 300 and the document code is 47. All E2 category unpostable cases must be worked on a priority basis with manual assessments being initiated when necessary for statute protection. Continued statute control is required for all Examination unpostables.

4.4.35.6  (02-08-1999)
AIMS—General Information

  1. CC AMCLSU is the command code that is used to correct Doc Code 47 adjustments that have unposted. A two digit unpostable indicator (Position 47–48 of Line 1) is used to identify the type of unpostable and the function resolving the unpostable.

    • Pos. 47 = P if you are correcting a AMCLSF, partial that unposted L if you are correcting a AMCLSE, long closure that unposted

    • Pos. 48 = E if it's an Examination adjustment that unposted A if it's an Appeals adjustment that unposted

     

4.4.35.6.1  (02-08-1999)
CC AMCLSU/LE

  1. Blocking Series must be 00X, 08X, 20X, 90X or 98X if the Status Code is 90.

  2. Blocking Series must be 10X or 18X if the Status Code is 8X.

  3. The TC 300 indicator must be reset to a "5" using CC AMAXU before an AMCLUS/LE can be input. The indicator must also be reset to a "5" if the unpostable must be returned to the originator for corrective action. Cases that are in Status Code 90 with a TC 300 Indicator of "5" will appear on the Non-Assessed Closures listing.

  4. If an unpostable is corrected using manual assessment procedures, AND THE TC 300 INDICATOR WAS RESET TO A "5" , you must enter $0.00 in Item 12 and the amount of the manual assessment in Item 35. If the TC 300 indicator was not reset to a "5" , do not input an AMCLSU.

4.4.35.6.1.1  (02-08-1999)
Exam Results

  1. When CC AMCLSU/LE is entered, the computer deletes all the information from the data base that was previously input. Therefore, ALL the information from the original Form 5344 must be reinput. If CC AMCLSU/LE is used, the computer will automatically recalculate exam results by subtracting out of results the amount that appears in the "Last Amt Put in Cum Field" and adding into results the amount reinput through CC AMCLSU/LE (this process is not performed when AMCLSU/LE is input to correct Exam's closure to Appeals that unposted).

4.4.35.6.2  (02-08-1999)
CC AMCLSU/PE

  1. Blocking Series must be 10X or 18X.

  2. Cannot input unless the partial agreement indicator was previously set.

4.4.35.6.2.1  (02-08-1999)
Exam Results

  1. Calculation of Exam Results depends on whether the case is still in an Exam Status Code or Status Code 8X or 90.

4.4.35.6.2.1.1  (02-08-1999)
Open Inventory Cases

  1. When an AMCLSF is input, the net of tax, penalty, and credits, are captured in both the Last-Amt-Put-In-Cum field and the Cum-Assmnt field. When an AMCLSU/PE is input, the unpostable amount is not removed from the Cum-Assmnt field which causes the adjustment to be included twice when Exam Results are calculated at final closing. The following procedures must be followed to prevent this from happening.

    1. Enter another AMCLSF with amounts necessary to reverse the unpostable AMCLSF IMMEDIATELY FOLLOWED BY CC TERUP. This removes the unpostable amount from the Cum-Assmnt field.

    2. Enter the AMCLSU/PE with the correct amounts. This will correct AIMS and update Master File.

     

4.4.35.6.2.1.1.1  (02-08-1999)
Example

  1. An AMCLSF in the amount of $500 has unposted and you must reinput the AMCLSU/PE with the same amount.

    1. Input an AMCLSF with a TC 301 for $500. This reduces the Cum-Assmnt field by $500.

    2. Immediately input a TERUP to prevent the TC 301 from going to Master File.

    3. Input an AMCLSU/PE for $500. This increases the Cum-Assmnt field by $500.

     

4.4.35.6.2.1.2  (02-08-1999)
Status 8X or 90 Cases

  1. If an AMCLSF/PE is required after a case is closed, the following procedures must be followed:

    1. Enter the AMCLSU/PE with the