If the above timeframes have passed, and the case has not been worked, is assigned to a CSR, and you have access to CIS, leave a Case Note for the CSR working the case. The Treasury Offset Program debt indicator (F) is set when Bureau of the Fiscal Service informs Internal Revenue Service (IRS) that at least one TOP debt exists and an offset may occur if a refund is authorized. But note that there are numerous exceptions which would allow a taxpayer more time to file a claim for refund, and consequently, more time to file the associated Form 8379 see IRC 6511. In instances involving offset bypass refunds, IRS personnel are required to contact Bureau of the Fiscal Service for debt information before issuing a refund. The TOP Liaison will prepare the Form 3809, Miscellaneous Adjustment Voucher, and include it with the substantiating documents to AM Process & Program Management Analyst for inclusion in the manual reversal request package. 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. UPC 342, RC 07, occurs when a TC 767 with OTN is greater than the net TC 76X with same OTN. Year. Send an explanation of the action taken to the taxpayers if applicable. See criteria listed in IRM 13.1.7.2, TAS Case Criteria, follow procedures outlined in IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines. One copy of the CP 36D notice is used as a "charge out" in files; the other is scanned into CIS or forwarded to the Accounts Management Function with the Form 8379, Injured Spouse Allocation. Provide the name and TIN of the taxpayer(s) and request confirmation of the existence of a debt, and the amount(s) owed, notate the information on your case history along with the name of the Bureau of the Fiscal Service CSR who provided it. Estimated delivery time (date filed - receipt of tax refund) E-file with direct deposit. The batching is performed prior to routing to the Manual Refund Function. The TOP Liaison will refer to IRM 3.17.63.9.27.4, Treasury Offset Program (TOP)/Debtor Master File (DMF) Manual Offset Reversal Transactions. Include the taxpayer contact information and any details the taxpayer provides which may help resolve the case. You will work the injured spouse case and issue a refund to the injured spouse for his/her share of the overpayment. Reverse any credit interest that was transferred with the offset. IRM 3.12.179.54 (3), UPC 159 RC 0-1, Estimated Penalty/Duplicate Assessments/Abatements. Get information about tax refunds and track the status of your e-file or paper tax return. If the interest payment was not offset with TC 898, then the TC 766 amount is simply the spouses share of the joint overpayment.Example: Using the above example and omitting the interest computations associated with TC 898, results in a TC 766 amount of $4,200. For any ID Theft case that cannot be reversed, refer to IRM 21.4.6.4.2.12. (Example: NCP SC1 RRC 50/50). NEVER input TC 767 with the OTN for any reason other than to correct a reject on the TC 766 reject listing. Send a letter informing the taxpayer we split the Charitable contributions. The purpose of the Agency/Sub Agency code is for internal use only. If OTN does not match, input a TC 767 with the invalid OTN, and a TC 766 with the correct OTN. If separate returns were originally filed and each person claimed part of the credit, each person should recapture 6 2/3 percent on their separate returns. For Taxpayers, Disputing the Debt or TOP Offset: IRS/TAS does not have the authority to bypass a TOP debt. If TXMOD shows an open base with MRR/NHQ do not submit request for a manual reversal. There is an unpostable TC 899 type 4 (agency offset reversal) for $45.00 and then there is another unpostable TC 899 Type 1 (Bureau of the Fiscal Service TOP offset reversal) for $1,500.00 (the full amount of the TC 898). Send a Letter 916C , Claim Incomplete for Processing; No Consideration, informing them upon completion of the review they can resubmit a new Form 8379, Injured Spouse Allocation, if needed. Do not route a copy or your original injured spouse case to EXAM, Criminal Investigation (CI) or IVO. Determine the married filing separate (MFS) tax for each spouse. Individual Income Tax Return, was not timely per IRC 6511(a), or IRS determines there is no overpayment available for credit or refund per 6511(b), then the Form 8379, Injured Spouse Allocation, is not considered as there would be no joint credit or refund to offset and the allocation irrelevant. For tax years 2009 and 2010, the Making Work Pay Credit provides a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns. Advance CTC is not subject to offset. Once the funds are transferred, it will create a balance due plus interest on the LLC tax period(s) and a credit on the individual income tax year(s), from where the refund will be generated. Analyze each inquiry carefully to determine the correct course of action. It is important to understand that the amount of a refund certified by IRS to Bureau of the Fiscal Service for payment may not be the amount that is issued by Bureau of the Fiscal Service to the taxpayer. The following actions are necessary to resolve the account when this situation is present: Leave message on UPTIN to post the "valid" TC 898 in 2 cycles to allow the TC 767 with the invalid OTN to post first. 6) Taxpayer says Form 8379 was filed with his/her original return and no refund was received. See IRM 21.4.2.4, Refund Trace Actions. If CC INOLET does not display a debt indicator, then the IAT Results IS screen displays the "N" . The state where same-sex couple resided during the tax year listed on Form 8379" is. Input a TC 570 to stop any erroneous refund from occurring prior to the posting of the adjustments. If there are no IRS debts, which must be by-passed and the address on ENMOD is not different than the address on the Form 8379, refer to paragraph (1) above to input the adjustment for the injured spouses portion of the overpayment. 112016 (MeF) and Rev. When permission is granted for the manual refund before the TC 700 posts to the account, input TC 470 CC 90 to prevent notices from being issued. If an offset occurs after Form 3753 has been issued, a Transaction Code (TC) 898 will not post to the account. Program Effectiveness: Program Effectiveness is determined by AM employees successfully using IRM guidance to perform necessary account actions. Joint filers whose principal home was in a community property state at any time during the tax year may not have to meet the requirement in paragraph (4) above. For other types of Congressional inquiries, refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines. If the taxpayer's Form 8379, Injured Spouse Allocation, can be processed with a faxed copy of Form 8379 request a copy and work the case. Research the CIS archived case files if necessary. A few paper copies should be kept in each area that works Form 8379, Injured Spouse Allocation, to photocopy when there is a problem with one of the electronic worksheets or the computers may be down. Cases involving bankruptcy and TOP offsets require that the agency receiving the offset make the refund unless: It can be determined that IRS was aware of the bankruptcy prior to issuing the refund that was offset. BPI (4) indicates that TOP should bypass all debts except child support for both the primary and secondary TIN. See IRM 21.4.6.5.8.7, Incomplete Form 8379 Signed or Filed with Original Return for instructions and suspend the case for 40 days. Some examples are provided below: If a joint return was originally filed claiming the credit, and the credit was split 50/50 between the two spouses; and a joint return is filed with the 6-2/3 percent recapture, it will also be split 50/50. When the overpayment has not offset and there is an IRS obligation, follow the IF/AND/THEN Chart below: The following is a list of conditions when the remaining overpayment will not offset if the secondary taxpayer owes a Federal tax debt. Be sure to reduce TC 899 or TC 971 AC 599 type 2 and 3 by any TC 899 or TC 971 AC 599 type 4 with the same OTN. If the account was corrected no other action is needed. TC 766(s) that are rejected in whole or in part by Bureau of the Fiscal Service are output on a weekly Bureau of the Fiscal Service TC 766 Reject Listing and provided to the TOP Liaison Office for resolution. Update IDRS with the activity code "TC840/OBR.". Legislative & Public Affairs Office 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. Prior to re-sequencing an account to a temporary number or different valid TIN, reverse any TC 898 on the "from" account if it is within 6 years from the date of original offset. Consider the period of limitations for both Federal tax offset and TOP offset. RC 4 results from an attempt to post a TC 899 when it does not find a TC 898 with the same OTN. 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. Bureau of the Fiscal Service maintains the TOP debts subject to offset under IRC 6402(c), (d), (e), and (f). On TurboTax's Website. Input a TC 767 with the OTN for the disallowed amount. The IAT tool is designed to research CC INOLET when the invalid indicator is present. 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. Remarks must also reflect which tax module the TC 520 is on and No TC 521 is pending. 4) Taxpayer claims his/her refund was less than expected, amount disagrees with TC 846/840. Advise taxpayer to allow up to 11 weeks for ELF returns and up to 14 weeks for paper returns processing time from the time we receive their original return. An injured spouse refund will be issued as requested on the original return unless an offset reversal (TC 898) or Form 5792, manual refund (TC 840), is involved. You do not need to complete the Injured Spouse Allocation Worksheet when one of the shortcut methods apply. Review the return and determine if the taxpayer can get relief as an "Injured Spouse" and refer them to Form 8379, Instructions. Withholding credit is less than reported on the joint return. You must take all transactions; posted or unposted, into consideration. If a refund was issued and Earned Income Tax Credit (EITC) or other refundable credits (e.g. Bureau of the Fiscal Service matches the refund through TOP and offsets the amount to the agency debt(s). If the answer is yes, the taxpayer qualifies for injured spouse relief. However, if only one spouse received their EIP refunds and RRC is claimed on the joint return , then the spouse who did not receive their EIP refunds should be allocated the RRC up to the amount of the EIP they did not get. Offsets that were inadvertently applied to TOP debts other than child support should be reversed and refunded to the affected taxpayers. See IRM 21.4.6.5.12.2, Manual Reversal of TOP Offset. In fiscal year 2022, TOP helped states by collecting $884.0 million in state income tax debt. If BFS rejects the reversal request, you will receive notification from the TOP Liaison Office, for any action needed. If a manual refund is issued, a TC 290 .00, HC and PDC are not needed, provided that Blocking Series 9 is input on your manual refund document. Refer to Document 6209, IRS Processing Codes and Information, for additional transactions and reason codes not shown here. Be sure that all TC 898(s) net to zero before attempting to merge the accounts again. - Non-Temporary Assistance to Needy Families (non-TANF) (payments to the custodial parent through the state). To correct the account, you will request Unpostables to correct the TC 899 Type 4 first (this would negate the TC 899 Type 2 previously posted) and then request unpostables to correct the TC 899 Type 1 for $1,500.00. 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