Net all TOP offset transaction codes with the same Offset Trace Number (OTN) to determine the TOP offset amount available to reverse. 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. Refer to IRM 21.6.2, Adjusting TIN-Related Problems. Issue a letter to inform the taxpayer of the amount due to them except for the TC 810 currently under review. NEVER input TC 767 with the OTN for any reason other than to correct a reject on the TC 766 reject listing. The manual refund must also have a BPI applicable to the injured spouse to show ownership of the refund for TOP offset eligibility. Notate on CIS that Insolvency did not give approval for a refund and that the injured spouse has been instructed to contact Insolvency. 3) Taxpayer claims his/her refund was less than expected, amount agrees with TC 846/840. Per Document 12990, Records and Information Management Record Control Schedules, we are maintaining all paper and electronic records accordingly. If unable, to reach taxpayer by telephone see IRM 21.4.6.5.8.9, Form 8379, No Consideration Procedures. All Form 5792, Request for IDRS Generated Refund (IGR), which relate to TOP forms, are batched separately from other IMF and BMF manual refunds. The TOP Liaison will open an IDRS control base, put MRRTONHQ in the activity section when the action has been initiated to the AM Process & Program Management Analyst. TC 150 is blocked 92, the Form 8379 allocation has been worked and a tax or TOP offset has occurred. The Form 8379, Injured Spouse Allocation, must be reviewed to determine that all income shown on the joint return has been properly allocated. 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 The presence of a -Y freeze on one or more of the balance due accounts (unreversed TC 480 pending offer in compromise with no TC 780 in collection status 71) does not preclude an OBR even if some of the overpayment would otherwise be applied to this module. If there is a TC 971 AC 598 (manual input of Top offset record) on the account, you cannot input a TC 766 with an OTN to reverse the TOP offset. Different community property laws may apply to allocations regarding overpayments offset to Federal tax or TOP debts. Refer to Document 6209, Section 5 - Debtor Master File (DMF), for agency listing. Base tax is the tax from the tax tables, less any non-refundable credits, prior to the addition of any other taxes. Subtract from the TC 898 or TC 971 AC 598: all TC 899(s) or TC 971 AC 599(s), type 1, type 2, or type 3, with the same OTN. See paragraphs (9) and (10) below for additional details. Allocate the education credit to the spouse who would have shown the item on his or her separate return. Command Code (CC) TXMOD also contains the debt liability indicator, found directly below the Transaction Code (TC) 846 and is displayed in the form of the number "0" or "1" . A3. See IRM 21.4.6.5.5, Hardship Refund Request. Two copies of the CP 36D notice, with a transcript of the account are generated. If you receive Form 8379 and there is no TC 150 on the account. Do not exceed the amount of the hardship request. For all other programs, follow Statute guidelines for your case. Follow the procedures below to reverse a tax offset when a clear determination is made that a portion of the injured spouse's refund has been applied to a tax liability for which he/she is not responsible. See IRM 21.4.6.5.8.9, Form 8379, No Consideration Procedures. Determine the amount of offset available for reversal. TC 150 is blocked 92, the Form 8379 allocation has been worked and a tax or TOP offset has NOT occurred. Refer to IRM 3.17.79.10.7, Incorrect Cancellation Amounts, for correcting UPC 138. If the allocation is correct, advise the taxpayer how the allocation was computed. See IRM 21.3.5.4.1, When to Prepare a Referral, for instructions. If the Form 8379 is attached to the joint Form 1040 or Form 1040X and the Form 1040 or Form 1040X is timely under IRC 6511, the Form 8379 is timely for any refund requested on Form 1040 or Form 1040X. Refund amount claimed on your 2022 California tax return: 540 2EZ, line 32; 540, line 99; 540NR, line 103; Obtaining taxpayer account information is the privilege of individual taxpayers or their authorized representatives. Follow up with the TOP Liaison if you have not received a response after 5 business days. See IRM 2.3.17.5.6, Request Codes for CC ESTAB and IRM 2.3.17-1, Input Format, CCESTABDocument Request for information on requesting the entire block. See paragraph (4) below. Contact the TOP Liaison or EEFax the request . The husband files an income tax return for 2012 that claims a $300.00 overpayment. The following example illustrates a returned refund, TC 841, that posted for an amount less than the original refund that was offset. Research CIS to ensure the taxpayer can provide all the needed information to complete the Injured Spouse Allocation, Form 8379. Do not use the Agency or Sub Agency Codes found on CC TXMOD or CC IMFOL for processing an injured spouse allocation, nor for advising the taxpayer of the existence/non-existence of a TOP debt at Bureau of the Fiscal Service. Alaska and Oklahoma are not community property states for the purpose of processing injured spouse allocation cases. The total interest payment of $47.49 ($46.83 + $0.66) was then offset with TC 898. Contact the TOP Liaison at , for a manual reversal. 19) Taxpayer filed Form 8379 in any manner. The IRS issued three EIP payments: EIP 1 and EIP 2 (advance payments of the RRC for TY 2020), and EIP 3 (advance payment of the RRC for TY 2021). See IRM 21.4.6.5.10.4, Injured Spouse Refund TOP Offset, for instructions on computing credit interest when a TOP Offset that included credit interest is reversed and the subsequent refund will be computer generated. Type 3 - IRS Manual Reversal Request or Bureau of the Fiscal Service refund of TOP offset. BPI (3) generates on all systemic and manual refunds issued from an individual NMF account, preventing TOP offset. Command Code ESTAB is used to request the entire block using the Document Locator Number (DLN). TDD at 866-297 . Send a letter informing the taxpayer we split the Charitable contributions. The systems are updated once every 24 hours. If an unpostable condition exists, the unpostable condition must be resolved. If a Form 8379, Injured Spouse Allocation, is unsigned and was not filed with the original signed return or attached to a signed Form 1040-X, Amended U.S. If approval to issue the refund is received, input a Manual Refund using BPI 8 or 9. Refer to Document 6209, IRS Processing Codes and Information, for additional transactions and reason codes not shown here. For payment status, i.e., if the refund has been sent to the plaintiff or plaintiff's attorney, call 517-636-5333. The taxable amount of Unemployment Compensation or Social Security Benefits shown on the joint return must be used when allocating the separate Adjusted Gross Income (AGI) for each spouse who received the benefit(s). See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines. 8752 allows for allocation of the Earned Income Tax Credit (EITC) shown on the joint return. The notice details are as follows: Address and phone number of the agency(s), Bureau of the Fiscal Service offset trace number (this is not the same as the offset trace number posted with TC 898), Phone number of the TOP Call Center at Bureau of the Fiscal Service. In instances involving offset bypass refunds, IRS personnel are required to contact Bureau of the Fiscal Service for debt information before issuing a refund. A TC 766 input for more than the net amount results in an UPC 189. Refer to Document 6209, Section 8A, Master File Codes. If the Form 1040 or Form 1040-X was not timely per IRC 6511(a) and a 105C, Claim Disallowed, letter was previously sent, send a 916C, Claim Incomplete for Processing; No Consideration, letter and advise the taxpayer that we cannot consider Form 8379, Injured Spouse Allocation, since the return was not timely filed. If the Form 8379, Injured Spouse Allocation, is filed with the original return and the account is in zero or debit balance with no math error, do not consider the Form 8379. Agency correspondence "certifying" a debtor, or requesting that a debtor's tax refund be offset, is returned to the agency. Be sure to Indicate "TC 766REJ" on the adjustment. If BFS cannot recover the offset, the reversal request will be rejected. Unauthorized access to account information is unlawful as described in Section 502 of the California Penal Code. (-R with an Unreversed TC 971 and/or TC 972 AC 134) IVO Involvement: Process the injured spouse allocation without regard to IVO indicators when the income data is verifiable on CC IRPTRL. (-G) Math Error Freeze, Forms 8379 received with an original return that shows a math error on the return should not be processed without first attempting to resolve the math error. 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. The Agency and Sub Agency codes will also be shown on the taxpayers account. Bureau of the Fiscal Service, which administers the Treasury Offset Program, controls the offset of debts under IRC 6402(c)-(f). BPI (1) (2), (8) and (9) are not valid when the BPI was set to (4). Take the following actions: Research IDRS, if a deleted unpostable (DU) 898 or a TC 971 AC 598 is on the account, contact the TOP Liaison for the paperwork to begin the manual reversal process. The money from the LLC tax periods will go toward any outstanding liability first. The batching is performed prior to routing to the Manual Refund Function. Send Letter 3179C, Refund Offset to Treasury Offset Program (TOP) and Injured Spouse Inquiries or Letter 285C, Refund/Overpayment Applied to Account, to the taxpayer informing them that we allocated it for them. The injured spouses manual refund must include the appropriate BPI and be issued in either one name only or both names, depending upon how the Form 8379 was completed by the taxpayers. UPC 137 and UPC 437 are IMF and BMF UPC(s) unique to the posting of a TC 898 or TC 899. This type of refund is called an Offset Bypass Refund (OBR). Bypass TOP offset for all debts other than child support. A true scrambled SSN case occurs when the Social Security Administration assigns the same SSN to more than one taxpayer. 2. Recover a refund issued because of a totally false return; (e.g., returns detected by the Questionable Refund Program, Criminal Investigation, Integrity & Verification Operation etc.). If the taxpayer responds after the time frame provided in the letter (30 days), we will honor their request if the funds have not yet been applied back to the IMF accounts. Some taxpayers will attach Form 8379 to their joint Form 1040 or Form 1040X, see IRM 21.4.6.5.8.10.1, Form 8379 Attached to Joint Form 1040/Form 1040X. Input the net debit adjustment (TC 29X) with the appropriate blocking series (block 00 with original return or 05 without original), source code (SC), reason code (RC) and use hold code (HC) 3. If the taxpayer sends additional information and the Form 8379, Injured Spouse Allocation, can be allowed, follow normal injured spouse processing procedures. See IRM 21.4.6.5.8.10, Time Period for Submitting Form 8379. The timeframe for filing Form 8379 for Federal Tax Debts or TOP Debts is the same as the timeframe for filing the claim for refund (generally 3 years from the date the return was filed or 2 years from the date that the tax was paid, whichever is later, but there are numerous exceptions see IRC 6511 . Therefore, discrepancies may arise from one cycle to the next and IRS may not be aware of a TOP debt. If research indicates the TC 899 Type 1 is unpostable, contact the TOP Liaisons for guidance. TC 570) to hold the overpayment when it is necessary to input a credit transfer on IDRS. If you do not agree, you must submit a new Form 8379 allocating the payment as you determine. Insolvency will then complete and EEFax the form to the TOP Liaison Office . Generally, a BPI is generated systemically, but when issuing a manual refund, you must input the BPI on CC RFUND. For Form 8379, compare the injured spouse's refund allocation with the TC 898 on the module and reverse only the portion needed. Offsets, what are they and have they resumed? | FTB.ca.gov Send Form 4442 /e4442, Inquiry Referral, to the CSR working the case. If a refund was issued and Earned Income Tax Credit (EITC) is involved, refer to IRM 21.6.3.4.2.7, Earned Income Tax Credit (EITC). More than 45 days have passed since TC 971, AC 071 was input, and the case is controlled to a clerical, site specialized control number or is not controlled to a specific CSR. Issue a manual refund using BPI 1 and BS 9. Any remaining overpayment will release to any outstanding debt. 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 there is no DEBTOR-TIN shown, the taxpayer with the primary TIN is the debtor. A TC 898 with document code 45, TOP offset of manual refund, re-sequences for 10 cycles, if TC 840 with the same DLN is not posted. Consequently, the name control does not match master file. After preparing this form, per the instructions on the form, return it to the liaison and the procedures will be initiated. These are due process notices and there is no requirement that IRS return them to the agency or forward them to the taxpayer. 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. EIP is split between spouses and is not allocated between spouses based on income or dependents on the return. When working an injured spouse allocation for 2009 and 2010, each spouse is entitled to his/her share of the credit. Do not use the Agency or Sub Agency codes found on CC TXMOD or CC IMFOL for processing an injured spouse allocation, nor for advising the taxpayer of the existence/non-existence of a TOP debt at Bureau of the Fiscal Service. Refer taxpayer to agency on the due process offset notice, or if unknown, to TOP Call Center above (agency must determine who owes debt and issue any subsequent refund). Disregard the instructions in IRM 21.5.6.4.35.3, -R Freeze Modules with Integrity & Verification Operation (IVO) Involvement. See SERP, Who/Where, Offer-in-Compromise (OIC) Compliance Campus Locations, for more information. IRM 3.12.179.54 (3), UPC 159 RC 0-1, Estimated Penalty/Duplicate Assessments/Abatements. If you receive a Form 8379 and the return is located in ERS, you should monitor until the account is corrected: Suspend your cases and change your control base to monitor (M) status. This credit is reported on Schedule M of the Form 1040/Form 1040A, U.S. If there is no tax and the taxpayer did not allocate the payments, the form is incomplete. Care must be taken to determine which laws apply in each circumstance. ID Theft, Merge cases, Scramble cases etc.). If the injured spouse is the secondary taxpayer and Part II, line 11, box is checked on Form 8379 (Rev. A community property state is entered and the address on ENMOD is a non-community property state. Use the IDRS On-Line input Chart found in Document 6209, Section 16, Julian Date, Cycle and Notice Calendars to determine the 23C date of the releasing adjustment. there is a TC 898 or TC 971 AC 598 on the account, Determine if any of the refund amount was issued per. If you are reversing a TOP Offset that includes computer-generated credit interest and you are going to allow another computer generated refund, you must calculate the additional interest owed on the original offset manually. See IRM 21.4.6.5.12.2, Manual Reversal of TOP Offset. When the Form 8379, posts to the wrong spouse's TIN, work the form under the correct TIN, 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.