Reprocessing Returns

A Reprocessable return is a return that posted to an incorrect tax period or TIN and needs to be corrected and re-entered through the processing system. For information on Credit Reference Numbers and Item Reference Numbers see IRM 3.14.2.7.6.6, Credit Reference (CRN) and Item Reference Numbers (IRN).

Definitions:

Receiving module- The module the return will be reprocessed to.

Losing module- The module the return will be moved from.

Zeroing-out the module- Adjusting the TC 150, withholding, Advance Earned Income Credit (AEIC), TC 766, Reference Numbers, and certain penalties to zero.

If the return is an Electronically Filed (Electronic File (ELF)) return, refer to IRM 3.14.2.6.18.1, Reprocessing/Adjusting E-Filed Returns.

If the return is a Form 706, 706-NA, Form 709, or 709-NA refer to IRM 3.14.2.6.7.1.5, Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions, for routing procedures. Do not adjust the account.

If the return was not included you must request the document following local procedures. If return is not received before the cycle close out you must input an H Disposition.

Form 13596 , Reprocessing Returns, is used to process a return to the correct account or module that had previously posted to the wrong account or module.

If a return was not edited according to current processing instructions, circle out any action codes, Computer Condition Codes (such as CCC G) and any other edited marks that are no longer applicable. Re-edit according to current processing instructions.

If the return was edited according to current processing instruction, then ensure that the information from Form 13596 is correct on the return. See the table below for editing steps for a reprocess.

Form 13596:

Action Taken:

TIN correction

Edit correct TIN on return

Tax Period correction

Edit correct tax period on the return

Reasonable Cause,

Edit appropriate Computer Condition Code:

Edit CCC R if the FTF box is checked.

Edit CCC D if the FTP box is checked.

Examine returns that have any color other than green edit in the tax data section to decide if the corrections are the results of improper perfection of taxpayer error. See the table below for editing corrections on reprocesses.

If

Then

Improper perfection,

Edit the same correction in green.

Taxpayer error,

Leave the entries as shown on the document.

A received date must be present on all reprocessed returns. See the table below for editing the correct received date.

If

Then

Received date is not present,

Edit a received date to the middle of the return.

Multiple received dates are present,

Circle all but the earliest date.

Circle out the green rocker and edit marks that may indicate a receipt of remittance.

Certain circumstances prevent a return from being reprocessed. Follow the table below to determine steps when a return cannot be reprocessed.

If

Then

A TC 150 has posted to the receiving module

Request both returns.

Do not zero-out the posted tax and reference amounts. Adjust them on both modules to agree with the information from the proper return.

Transfer the TC 610 payments if necessary.

Pull all current cycle notices for both modules.

Follow normal notice disposition procedures in IRM 3.14.2.7.10 , (Notice Disposition).

The return posting incorrectly to the losing module is a duplicate return of the TC 150 posted to the receiving module

Zero out the tax on the losing module.

Input TC 971 Action Code 001.

Do not reprocess return using 13596

Input TC 290 .00 using Blocking Series 10, 15 or 17 as appropriate and hold code, on the receiving module.

Use the return that posted incorrectly as the source document.

Either module has:

A pending or posted Doc Code 47, 51, or 54 transaction

A pending or posted TC 976 or TC 971 (AC 010) on TXMOD or BMFOLT

An erroneous refund

Void the notice.