Transcript HERE - Tax Relief Team

Decoding and
Understanding
the Entity Section
April 5, 2014
9 p.m. Eastern
Agenda
Announcements
Learning Process
Goal
Introduction
Tools Needed
Overview of the Entity Section
Announcements
Class is sponsored by the Tax Relief
Team www.taxreliefteam.org
Contact TRT
www.taxreliefteam.org/home/consult
Location of Recordings
Calendar
www.taxreliefteam.org/calendar
Recordings
Radio programs
www.taxreliefteam.org/free/talkshoe/
Webinars
www.taxreliefteam.org/free/anymeeting
Class Schedule
o
5-April-2014, Entity Section tonight
o
3-May-2014, The Individual Tax Module MFT 30
o
10-May-2014, The Penalty Module MFT 55
o
17-May-2014, IRS Procedural Errors,
o
31-May-2014, IRS Procedural Errors (cont'd),
o
2-Aug-2014, Amend the IMF
o
9-Aug-2014, Amend the IMF (cont'd)
Learning Is a Process
Information is gathered or provided.
You can gain Knowledge from this information.
You must develop Understanding from the
knowledge
Competency or Wisdom is developed from the
understanding.
Information + Knowledge + Understanding =
Wisdom
GOAL
To help move you along the learning process.
By providing you with tools to use and apply
Teaching you how to use those tools to turn the
Information to Knowledge
Explain on how to find and use the tools
So you can apply this to the information Information
is gathered or provided.
You can gain Knowledge from this information
Introduction
My name is Mike..
I have been “decoding” IMF files
since 2005
Decoding the IMF is different from
understanding the IMF.
Decoding is taking every code entry
and explaining what the code
means in words.
Introduction continued
Understanding how to read your IMF will give
you insight to error, mistakes, violations by
the IRS.
TRT does Audit Reconsideration (A/R) using
data found in your IMF file.
We look for patterns of error of violations in
your IMF file.
Every A/R I have done so far has stopped all
collections on the Civil Penalties and Levies if
in process.
Introduction continued
There are a few TRT members who did audit
reconsiderations in which the levy was not stopped. In
each case the levy was placed there by a Revenue
Officer (RO) and not Automatic Collection Services
(ACS)...
Mistakes or making the wrong claim will make the
A/R invalid or “Frivolous” in the eyes of the IRS
It takes nearly 20 hours of my time to do a A/R for a
3 or 4 year period.
Tonight’s Schedule
9 – 9:10 p.m., Announcements
9:10 – 9:50 p.m., Introductions &
Training
9:50 – 10 p.m., Break
10 – 10:50 p.m.
Training
Q&A
Close
The IMF
Individual Master File (IMF)
Official name is IRS 24.030—
CADE Individual Master File
(IMF)
A transaction log of all IRS
actions by the IRS
Records assessments, liens, levies,
payments, tax agreements, letters
sent
The IMF
The IMF functions as the Master
Records for you for any given tax year.
It is maintained at the Enterprise
Computing Center, Martinsburg, WV
Regional Offices input data into a
Transactional File which is sent to
Martinsburg and uploaded to your IMF
after compliance testing.
The Importance of the IMF
Every IRS agent, revenue officer,
appeals official, and taxpayer (taxtaker) advocate service (TAS) relies
on it.
IRS letters are generated based on
the information in it.
IRS letter types and dates are also
documented in the IMF.
The Importance of the IMF
IRS collections are based on data in
the IMF.
IRS Form 4340 Certificate of
Assessments is created from the
data in the IMF or NMF
IRS Form 4340 Certificate of
Assessments is used as evidence in
court trials
What does it Contain?
It contains evidence of procedural
abuses by the IRS.
References documents the IRS claims
they used to support the data entry and
determination by them for every entry.
It contains forensic evidence of
computer fraud.
The Importance of
Understanding the IMF
To point out procedural errors made by
the IRS.
Point out inaccuracies of the IRS
records maintained on you.
Is the basis for reconsiderations:
Audit (failure to file and SFRs)
Assessment (AUR, SFR, ASFR, and
other)
Other Uses
It is the basis for PROVING the
IRS did not follow its procedures
when it created assessments.
Can be used to challenge the
presumptions of IRS Form 4340
Certificate of Assessments
Why you should Understand
the IMF?
So that you can explain the errors
and keep IRS these computerized
system of records from being
entered as evidence at a trial or
hearing.
Establishes that the IRS’
computerized system of records is
not accurate, reliable, or
trustworthy.
Contents of the IMF
The IMF is a mainframe front-end
application to a database
It implements the tax laws
constitutionally to ensure that all
data entered into your tax logs
meets the tax laws of the
government
The reports are all based on 80column punch cards
Contents of the IMF
The data is entered in brief codes
Two types of IMF
Specific
One entity section per year
year-by-year breakdown
Complete –
One overall entity section
Year-by-year breakdown
Your FOIA request should get
you these documents
Tax module section (MFT 30)
Complete (includes the Entity)
Specific
Penalty module (MFT 55)
All civil and criminal penalties
How IRS Disclosure Office
Requested your IMF
IRM 2.3.32.1 Introduction to IDRS
Command Code MFTRA, explains
something very important.
IDRS Command Code MFTRA is used to request taxpayer
information in the form of hardcopy transcripts. These requests
are forwarded to the MF at the Enterprise Computing Center Martinsburg (ECC-MTB). After the information is extracted
from the MF it is passed to the Service Campuses where the
Transcript Research System (TRS) processes the data and formats
the transcripts. These transcripts are then printed at the Service
Campus or the Remote Office of the requestor.
How to Read a Page
You need a overlay showing field
locations.
You will need a description of the fields.
You will need to match these fields with
real data in an actual report.
See the following example of a request
for IMF records.
Example of a Typical Record
from the IRS System
Show Request Report (1 – 1)
Show Overlay PDF ( 1 – 2)
Show Field Names ( 1 – 3)
Tool Locations
http://www.irs.gov/irm/part2/irm_02003-032r.html#d0e1979
Go to this URL above to get the two
documents (tools) you will need.
Field Names and Descriptions
Overlay
Click on the link that says;
Please click the link to view the image. This
will provide you with the Overlay
• Print these out and keep it handy
IMF Record
Show IMF Report (2 – 1)
Show IMF Overlay PDF ( 2 – 2)
Show IMF Field Names ( 2 – 3)
Entity
Redacted Entity Record
Overlay
Field Names 4 - 13
4
TC 148 HOLD INDICATOR See IRM 5600–22 Collection Field
Function Techniques and other assignments, for meanings of values.
5
NAME LINE YEAR
6
FILING STATUS CODE
7
PRIMARY NAME LINE
8
SECOND NAME LINE (if present may be CONTINUED NAME LINE
or FOREIGN ADDRESS LINE, or CARE OF NAME LINE)
9
ADDRESS CHANGE CYCLE—Cycle the latest address change posted
10
STREET ADDRESS
11
CITY/STATE
12
ZIP CODE
13
SPOUSES SSN
Field Names 14 - 20
14 PRIOR NAME CONTROL
15
LEFT HAND FREEZE CODES— See IRM 2.24.1, ADP Systems Code
16
RIGHT HAND FREEZE CODES— See IRM 2.24.1, ADP Systems Code
17
PRIMARY LOCATION CODES
18
COLLECTION LOCATION CODES
19
MAIL FILE REQUIREMENTS
20
INVALID SSN FREEZE INDICATOR Zero—Invalid SSN Freeze in effect
Blank—Invalid SSN Freeze in effect. 1—Invalid SSN Freeze has been
released by TC 290 or 300 or Scrambled SSN Indicator of "2" . This release
is effective during the current calendar year only. 2—Invalid SSN Freeze has
been released by TC 150 Document Code 72 or 73 posting to this
Temporary SSN. This release is effective during the current calendar year
only.
Field Names 21 - 24
21
IRA FILING HISTORY CODES—Carries the history of IRA Accounts
from 1980 (left most position), through 1994. Indicator will appear for
those years an IRA Account is present.
22
CAF INDICATOR—If other than zero there is data present on the
Centralized Authorization File for an entity authorized to perform certain
functions for the taxpayer. Use CC CFINQ as described in IRM 2.3.31 to
display CAF data.
23
YEAR REMOVED—will be significant only for accounts which have aged
off from the Regular IMF to the Dropped Master File, which has only a
minimum amount of data. Refer to the Microfilm Retention Register for
more information, if desired. (Master File Transcripts only)
24
ENTITY EXTRACTION CYCLE—According to Master File processing,
this is the cycle that the account was last extracted to the IDRS Taxpayer
Information File. If no record of the last extraction, this field is blank.
Field Names
25 FISCAL YEAR MONTH—from a most current First Name Line on the
Master File entity.
26
SCRAMBLED SSN INDICATOR Blank—No scrambled SSN 1—Two
taxpayers are using the same SSN 2—SSN has been verified—not a
Scrambled SSN. Released Invalid SSN Freeze 4—Mixed Entity cases
27
≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡
≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡
≡≡≡
28
TC130 INDICATOR—Transaction Code 130 Freeze Indicator, displays
code of Service Center which established the 130 freeze. In some cases this
will be a stale abbreviation
Field Names
29 POTENTIALLY DANGEROUS TAXPAYER LITERAL—OR KILLED IN
TERRORIST ACTION LITERAL. Will have value *PDT* if PDT
indicator is 1 or *CAU* if it is 2. Will have a value of KITA if this
indicator is 1 and HSTG if it is 2. If neither indicator is set, field contains
blanks. If both are significant, it will display KITA.
30
TAXPAYER REPEATER INDICATOR 1—Initial issuance of TDI/Notice
for One Tax Module; 2—Multiple module issuance of TDI/Notice; 3—At
least on module is in First Notice Status 19 or 21, and No Other Modules
are in Status 23 or 60. (New for 2013 - A
Field Names 31 - 35
31 PAYER MASTER FILE INDICATOR —When "1" , account is also on
PMF.
32
TAX SHELTER INDICATOR
33
BANKRUPTCY CODE—A value of "1" means the taxpayer has filed for
bankruptcy.
34
ACCRETION INDICATOR—blank—Not set1—Accretion Invalid SSN
Release has been set for at least one TC 150.
35
MINISTER SELF-EMPLOYMENT TAX EXEMPT CODE If significant,
means that a minister is claiming exemption from Self-Employment Tax. 1
= Form 4361 Approved 4 = Form 4029 Approved 2 = Form 4361 Denied
8 = Form 4029 Denied In addition, these character values are possible: B =
Combination of 1 + 2 + 8 values above; C = Combination of 4 + 8 values
above; D = Combination of 1 + 4 + 8 values above; E = Combination of 2
+ 4 + 8 values above; F = Combination of 1 + 2 + 4 + 8 values above; Any
combination of these values are possible. For example, the value "6" would
mean Form 4361 Denied and Form 4029 Approved. The value "A" (2 + 8)
would mean Both Forms Denied.
Field Names 36 - 44
36 CURRENTLY NOT COLLECTIBLE INDICATOR —"CNC" will be
displayed if any module. in account contains an unreversed TC 530.
37
BANKRUPTCY LITIGATION LOCATION CODE
38
MOP/UN LITERAL
39
Reserved
40
Reserved
41
Reserved
42
JUSTIFICATION CD
43
REDUCE UNNECESSARY FILING—If the RUF-IND= 1, display "RUF" .
44
IRS EMPLOYEE CODE 1—Primary 2—Secondary 3—Both IRS employees
Field Names 45 - 54
45 FEDERAL EMPLOYEE INDICATOR 0 = Insignificant, edited as spaces 1
= Taxpayer is a Federal Employee or a Retiree, edited as "F"
46–49
RESERVED PRIOR YEAR NAME LINES
50
NAME LINE YEAR
51
PRIOR YEAR FILING STATUS CODE
52
PRIOR YEAR NAME LINE
53
PRIOR YEAR SPOUSE'S SSN and VALIDITY INDICATOR
54
CIVIL PENALTY NAME LINE or INNOCENT SPOUSE NAME. If
present, both it and the preceding literal "PTNL" will be displayed. PTNL
is Primary Taxpayer Name Line.
Field Names 55 - 62
55
LAST RETURN FILED YEAR—Year of the most recent return
56
ES TAX DISCREPANCY CODE Blank = No discrepancy $ = Discrepancy
57
MATH ERROR CODE—Refer to IRM 2.24.1, ADP systems code for
appropriate codes.
58
MULTIPLE MATH ERROR CODE INDICATOR Blank—None or one
Math Error Code present. *—indicates more than one math error code is
present.
59
FILING CONDITION CODE E—Even B—Balance Due C—Credit Elect
R—Refund
60
FILE LOCATION CODE—The District Office in which the latest return
was filed.
61
CYCLE LATEST RETURN POSTED—YYYYCC
62
OIC Generated literal NOTE: This literal is generated when OICACCEPTANCE-YR field is greater than zero.
Field Names 63 - 73
63 ELECTRONIC DEPOSIT INDICATOR
64
Reserved
65
Business Operating Division Code
66
Business Operating Division Client Code
67
FMS Levy Code
68
Small Business Area Office Code
69
IMF Combat Literal SPACES - Insignificant. MOP/UN - Indicates that the
taxpayer is a participant in a military operation or United Nations Peace
Keeping Force.
70 15% SSA Levy
71
ERO Indicator
72
PDC ID CD
73
LOW INCOME IND
Q and A Until 11:30 p.m.
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