Reminder:

If your site works both IDT case work and injured spouse case work, do not reassign the case. The case should be retained and worked within your site.

You do have the skill set to resolve the case – Take all necessary actions to resolve the IDT issue following normal procedures. Use Hold Code (HC) 4 on your adjustment or TC 570 with credit transfers to hold the resulting credit. Then open a new CII case with Category Code "DMFC" , Program and Function Code "710-97140" , and "Priority 2" . Resolve the injured spouse claim

(15) Presidential Election Campaign Fund (PECF)

When the valid return reflects yes to PECF and the invalid return did not, see IRM 21.6.7.4.12, Presidential Election Campaign Fund.

(16) Statute Year

If the required adjustment includes a tax increase or credit decrease:

ASED is open: See IRM 25.23.4.9.1, Statute Imminent Assessments for IDT Cases.

Assessment is barred:IRM 25.23.4.9.2, Addressing Barred Assessments on Identity Theft (IDT) Cases.

(17) Valid taxpayer has not filed

Determine if the valid taxpayer has a filing requirement and address unfiled returns, if necessary. See IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.

(18) Non-Streamline

Research CC NAMES to determine if the taxpayer was previously assigned an IRSN.

If an IRSN was not assigned, follow local procedures to obtain an IRSN.

Once an IRSN has been identified, establish the entity with TC 000 or update the previously established account if current information for the IRSN taxpayer is available. See IRM 3.13.5.117, Establishing a New Account (TC 000). If a valid address cannot be identified, use a Service Center (SC) address. See IRM 3.13.5.66, Campus Address Used Only When Taxpayer Address is Unavailable.

Document in a CII case note the IRSN used.

Refer to the table below for adjustment considerations:

Adjustment Item

Details

(1) Blocking Series (BS)

Use BS 00, unless setting a math error or disallowing the claim. See IRM 21.5.2.4.22, Blocking Series (BS), for additional information.

(2) Override Code

Use an Override Code, when necessary:

R – Allows the IRS Received Date to be older than a year.

S – Allows the current date and Refund Statute Control Date to be later than the Refund Statute Expiration Date (RSED).

(3) Refund Statute Control Date (RFSCDT)

Use the timely filed claim received date or timely post mark date if the claim received date is not available.

(4) Source Code (SC)

Use SC 0.

(5) Reason Code (RC)

RC 139 is used to identify an adjustment due to an identity theft claim or issue.

(6) Hold Code (HC)

Use the appropriate hold code depending on the expected outcome of the adjustment.

HC 3 – Will hold only the adjustment notice. Use for adjustments resulting in a zero balance, balance due, or credit that will be offset or refunded systemically.

HC 4 – Will hold the adjustment notice and resulting credit. Use for adjustments resulting in a manual refund, disallowance of a refund, or when all or some of the refund will be applied to a valid balance due or as a credit elect by inputting a credit transfer.

(7) Priority Code (PC)

Only use a PC, when necessary. See IRM 21.5.2.4.16, Priority Codes (PC), for additional information.

(8) Posting Delay (PD) Code

PD Codes are used to ensure account actions and adjustments will post in the correct order. See IRM 21.5.2.4.17, Posting Delay Code (PDC), for additional information.

When inputting an entity update or TC 971 AC 850, post delay your corrective adjustment by one cycle.

When inputting an entity update and TC 971 AC 850, post delay TC 971 AC 850 by one cycle and your corrective adjustment by two cycles.

When transferring a credit (e.g., moving refunds, credit transfers, etc.) to the module the adjustment will be input on, post delay your corrective adjustment by one cycle.

(9) Source Document

No Source Document (NSD)

(10) Remarks

Notate "Identity Theft" or similar.

Refer to the table below to identify applicable tax module actions based on the determination made when streamline criteria is met: