If the interest payment was not offset with TC 898, then the FROM date for the additional interest (TC 770) is the 23C date of the accrued interest (TC 776) that accompanied the interest payment.Example: Finishing with the example from 2) above, if the interest payment of $47.49 had not been offset with TC 898, meaning the TC 766 amount is $4,200, then the FROM date to calculate additional interest for the TC 766 of $4,200 is the 23C date of the accrued interest of $0.66 (August 31, 2020). If the injured spouse is the primary taxpayer and Part II, line 11, is not checked on Form 8379 (Rev. The Recovery Rebate Credit was eligible to be paid as rounds of advance payments during 2020 and 2021. Refer to IRM 188.8.131.52, Child Support Obligation, which provides additional information, including the NMF assessment and collection processes. For taxpayer inquiries regarding Refund Discrepancies: Advise the taxpayer to allow five calendar days for direct deposit and 4 weeks for paper check to arrive. BPI (5) indicates that TOP should bypass all debts for the primary TIN and all debts except child support for the secondary spouse. See IRM 184.108.40.206.8.10, Time Period for Submitting Form 8379. The original refund for $1,586, TC 846 dated 03/06/2009, was offset for $1,000, TC 898. Subtract any previous offset or refund, such as TC 820/TC 826, TC 840/TC 846, BMF or IRAF TC 896, attributable individually or jointly to the injured spouse, from the injured spouse's share of the joint overpayment. Primary Stakeholders: The primary stakeholders are Management Officials who rely on accurate data, reports and quality information to ensure there are no gaps in efficiencies. It may be necessary to coordinate the release of freeze conditions and subsequent adjustments with another IRS function. TOP offsets are made against any refund issued from MFT 29, MFT 30, MFT 31, MFT 35 and MFT 55 unless a Bypass Indicator (BPI) is generated on the TC 846 or input on a manual refund TC 840. If there is no tax and the taxpayer did not allocate the payments, the form is incomplete. If research indicates the TC 899 Type 1 is unpostable, contact the TOP Liaisons for guidance. See IRM 220.127.116.11.12.2, Manual Reversal of TOP Offset. Use a TC 570 on the credit portion of the transfer. Refer to IRM 18.104.22.168.17.1, Recapture of First-Time Homebuyer Credit (FTHBC), for guidelines on the recapture. Do not transfer if the letter is a Bureau of the Fiscal Service letter. 11-2016 (Mef) and Rev. Compute an allocation for the original offset and 50 percent for the stimulus payment. (Example: NCP SC1 RRC 50/50). They are intended for the Full Collection program. Payment Document Locator Number (DLN) (matching the transfer DLN), Tax form for the applicable Master File Tax (MFT) Code, tax period, and payment date. A systemic recovery was implemented to correct these accounts. For the State Income Tax Levy Program (SITLP), refer to IRM 22.214.171.124.7.17, State Income Tax Levy Program (SITLP). Do not make an entry in the Amended Claims Date (AMD-CLMS-DT) field. A request for an OBR must be worked immediately upon receipt. Send letter 3179C, asking the taxpayer to resubmit their Form 8379, if there is a refund after the reconsideration is complete. In some instances, a TC 899 will unpost due to an erroneously deleted TC 898. 11-2016 (MeF) and Rev. A bankruptcy V or W Freeze, set by the posting of TC 520, with closing code 60-67, 81 or 83- 89 with a transaction date prior to 10/17/2005, generates a BPI (3) on a TC 846 issued from that module. Alaska and Oklahoma are not community property states for the purpose of processing injured spouse allocation cases. AM Process and Program Management produces a Utility 50 Run in October of each year to determine the volume and money amount of unresolved Form 8379, Injured Spouse Allocations. See IRM 126.96.36.199.12.2, Manual Reversal of TOP Offset, for additional instructions. If 11-14 weeks have passed and the case has not been worked and is controlled to a clerical, site specialized control number or there is an open control base not assigned to a specific CSR, and you have access to CIS and are trained to work Injured Spouse cases, process the case according to 188.8.131.52.8.3, Processing of Form 8379, Injured Spouse Allocation. In Obergefell v. Hodges, 576 U.S. (2015), the United States Supreme Court held that (1) all states must allow same-sex couples to marry on the same terms and conditions as opposite-sex couples, and (2) states must recognize lawful same-sex marriages performed in other states. This is required for injured spouse allocation processing. A manual refund due to hardship with BPI 3 must not be used to bypass a TOP offset. The IRS policy has been to offset tax refunds for tax periods extending through the calendar year in which the OIC is accepted. BPI 7 generates on all refunds when no other condition or manual input results in the use of another BPI and the creditor agency has obtained relief from the automatic bankruptcy stay. If the jointly filed claim on Form 1040, U.S. BPI (1) (2), (8) and (9) are not valid when the BPI was set to (4). Any remaining overpayment will release to any outstanding debt. Your payment may be less because you owed an overdue debt to a federal or state agency. Bureau of the Fiscal Service sends an offset notice to the taxpayer if this occurs. This prevents a TOP offset to any debts owed by the primary filer. 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. In general, a TC 899, type 1, 2, 3 or 4 will be pending or posted to the account. If you work at a remote call site, and you do not have access to CIS to view the Form 8379, Allocation Worksheet, or do not work injured spouse allocations, transfer the call to Application 35 using ACD = 92035 or IUP = 1035, if it meets the criteria in paragraph 10 below. For example, you cannot allocate an exemption by giving each spouse 1/2 of the exemption. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. Learn how you can keep yourself protected. See IRM 184.108.40.206.2.1, TOP Offset Bypass Indicator (BPI). See IRM 220.127.116.11.2.11, Netting TOP Offsets and Reversals. Form 8379, Injured Spouse Allocation, should not be considered: If a Form 8379 is filed for any filing status except Married Filing Joint. If the taxpayer reported excess APTC on their original return but did not allocate the excess APTC on Form 8379, allocate one-half the APTC for each spouse (50/50). BPI 5 is required if a manual refund will be issued to an injured spouse who is secondary, from a module with a combat zone C Freeze. When working a Form 8379 and the debt indicator on CC INOLE is "N" for both taxpayers, do not release the overpayment with a TC 571. The taxpayer was sent a refund of $586 ($1586 - $1000). The new regulation does not apply. Input TC 571 if TC 570 (-R FRZ) is on the account. When a TC 971, AC 071 was input on the wrong account/year, update the CIS case to the correct account and input the TC 971, AC 071 on the appropriate account. It is generated on all refunds when no other condition or manual input results in the use of another BPI. If the address on ENMOD is different than the address on the Form 8379 contact the taxpayer either by phone or correspondence to verify their address. See IRM 18.104.22.168.2.11, Netting TOP Offsets and Reversals. Accounting receives and processes the approved OBR request before the posting date of the freeze release. Use CC UPCAS with Definer Z to input a message with the correct name control. Input TC 807 first with HC 1, then input TC 808/809/810/811 with a PDC for 1 cycle. It is important to first research the taxpayer's account to verify what type of offset(s) occurred before attempting to answer questions about an offset. Before reversing any offset to Office of Child Support Enforcement (Agency Codes 1 and/or 2), see IRM 22.214.171.124.2.4, Child Support TOP Offset. To prevent an erroneous refund on an OBR, allow posting of the manual refund to release a freeze instead of manually inputting an action on IDRS to release the freeze. Resolve Combat Zone cases, see IRM 126.96.36.199.16, Combat Zone Cases. This result is then added to the injured spouses share of the joint overpayment to obtain the TC 766 amount.Example: Continuing the example above, an interest payment of $46.83, plus accrued interest of $0.66 was posted to the 2019 tax module for the taxpayer in cycle 202033 to allow interest on a joint return overpayment of $9,500. If both spouses have income (see Note below), If one spouse has income (see Note below), The earned income is $12,903.00 or more (phased out with a MAGI of $150,000). Verify that the corrective action is accurate before closing, Close your case using Document Type-Internal Transcript, IDRS Cat Code IRRQ, Program Code 40000. See IRM 188.8.131.52.14, TOP Source and Reason Codes. Form 8379, Injured Spouse Allocation, must be reviewed to determine that all income shown on the joint return has been properly allocated and verified. See IRM 184.108.40.206.8.9, Form 8379, No Consideration Procedures. Research and consider the following transactions on the module before inputting any adjustment for a TOP offset on a taxpayer's account: If a TC 899 Type 2 (agency refund) is on the account, see IRM 220.127.116.11.1, Account Actions for Category D Erroneous Refunds. Notate NCP SC 2 on CIS cases. In the above example, the TC 841 would unpost if it were less than $586.00, determined as follows: See IRM 18.104.22.168.2.2, IMF TOP Offsets, and IRM 22.214.171.124.2.3, BMF and Civil Penalty TOP Offsets, for conditions that result in the generation of BPI 3 on IMF and BMF refunds. If preliminary research does not indicate an agency refund, follow Scrambled SSN Procedures in IRM 126.96.36.199.3, Scrambled SSN Case Procedures. For prior revisions of Form 8379, always issue the Injured Spouse's portion of the refund in "one name only" even if the one name only box on line 11 is not checked. Quality data and guidelines for measurement are referenced in IRM 21.10.1, Quality Assurance - Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, TEGE, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support. The taxpayer has an overpayment on their return showing $1,000. Some freezes and the actions required to process the injured spouse allocation are: Invalid TIN entity freeze: Resolve problem with the TIN before processing the Form 8379. A TC 899 type 1,2, 3 or 4 may have been deleted in error. See IRM 188.8.131.52.2.12, Premium Tax Credit. Injured spouse refunds of tax offsets must not be allowed to generate systemically. A TC 898 or TC 971 AC 598, originating from a computer-generated refund, will match the date of the TC 846. With a tax refund offset, taxpayers can either: Apply for the tax refund offset process, or. Before reversing any offset to Office of Child Support Enforcement (Agency Codes 1 and/or 2), see IRM 184.108.40.206.2.4, Child Support TOP Offsets. Therefore, this unpostable transaction must NEVER be deleted. Annotate the taxpayers account with a Case Note with the information obtained. Determine a new, separate EITC that would be available for each spouse if that spouse had filed a separate return and if EITC were available on a MFS return. Individual Income Tax Return, was received. See IRM 220.127.116.11.2.6, TOP Offset Notice, for notice information. If you intend to honor a hardship and a tax debt exists, See IRM 18.104.22.168.11.1, Offset Bypass Refund (OBR), before taking any action. If an adjustment is made to abate the tax, the appropriate hold code 1, 2 or 4 is needed to prevent the generation of the refund on the 2011 MFJ account and a TC 570 must be used for the credit transfer when posting the credit(s) back to the originating account(s). 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. In general, IRS may honor a hardship refund request if the taxpayer has no debt or owes only Federal taxes. If there is a balance due module; a freeze release will prompt an offset to that account. Before reversing any offset to Office of Child Support Enforcement (Agency Codes 1 and/or 2), see IRM 22.214.171.124.2.4, Child Support TOP Offsets. Notate, on the CIS case notes, the shortcut method used. If the freeze release occurs without a releasing transaction (e.g., due to the passage of time from the imposition of the freeze), treat the posting date of offset credit transfers as the posting date of the freeze release.
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