Note:

The IAT Results IS screen may respond with a debt indicator "N" when an invalid Social Security Number (SSN) indicator follows the Taxpayer Identification Number (TIN). The IAT Tool is designed to research CC INOLET when the invalid indicator is present. If CC INOLET does not display a debt indicator, then the IAT Results IS screen display the "N" . Additional research is needed if the secondary TIN is invalid.

The Department of the Treasury (Treasury), Bureau of the Fiscal Service (BFS), amended its regulation governing the offset of tax refund payments to collect past-due child support obligations. This change limits the time in which Treasury may reverse a tax refund offset to collect a delinquent child support debt to six months.

To address this change, IRS must limit the time to reverse a child support offset to 5 months (150 days) from the refund payment date. To determine the date of offset, use the RFND-PYMT-DT associated with the TC 846/840. The 5-month limit allows for internal system processing of the offset reversal request (TC 766 with an Offset Trace Number - OTN). 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.

Offsets that occur during processing year 2016 and beyond will post with the Agency and Sub-Agency code. If the Agency code is "1" or "2" , the offset is for a delinquent child support debt and the 5 month limitation rule applies except for a Form 8379, Injured Spouse Allocation. See Document 6209 Section 5, Debtor Master File, for Office of Child Support Enforcement Agency and Sub-Agency codes.

Offsets due to delinquent child support occurring during processing years 2012-2015 will be identified by the posting of Transaction Code (TC) 971 Action Code (AC) 126. The Agency Code, OTN, and offset amount will be identified in the MISC field.

Offsets due to delinquent child support prior to 2012 will not have any indicators identifying which agency the refund offset to. Contact the TOP liaison to identify the agency code(s).

For all TOP Offsets involving Identity Theft, follow the guidance in IRM 21.4.6.5.1.2.4, TOP Offsets Involving ID Theft and ID Theft with Fraudulent Returns. Input TC 470, as needed, to prevent balance due notices from generating while the case is being worked. If TC 470 is input, TC 472 must also be input when the valid taxpayer will have a balance owed after the identity theft issue is resolved. Include a post delay code with the TC 472 if input at the same time as TC 470.

When resolution of the identity theft issue requires reversal of a TOP offset that is more than 6 years old, contact the TOP offset Liaison, per IRM 21.4.6.5.1.2.4(5), TOP Offsets Involving ID Theft and ID Theft with Fraudulent Returns, and input the adjustment to correct the account. Once all required IDT account actions have been completed, the IDT control can be closed on CII. It may take 180 days or longer for the TC 700 to post. A monitoring control on IDRS with the Activity “PNDMRR/###” and Category “MISC” will be opened by the assigned employee.

A manual reversal is required when you have an IMF/BMF offset which was sent to Bureau of the Fiscal Service in error and cannot be reversed with a TC 766 (IRS reversal) or TC 899 (Bureau of the Fiscal Service reversal). Once the TOP/DMF Manual Reversal Request Form has been submitted and all required ID theft account resolution actions are completed, close the CII case. It may take 180 days or longer for the TC 700 to post. A monitoring control with the Activity "PNDMRR/###" and category "MISC" will be opened by the assigned employee. Refer to IRM 21.4.6.5.8.2, Manual Reversal of TOP Offset, for additional guidance.

If the manual reversal is not posted or pending on IDRS after 180 days, follow up with the TOP liaison.