A list of accounts eligible for inactivation is automatically generated from data processing and received by the Status Section each quarter about the 20th day of February, May, August and November. Eligible accounts are those that have been reporting zero total wages for the previous eight quarters. Annual domestic filers will have less than eight quarters of zero total wages posted.

The inactivation list is assigned to one accounts examiner, who will be given access to the SIR (Eliminate Inactivation Candidates) screen. The SIR screen will display the list of accounts eligible for inactivation. This screen can be used to eliminate rejected accounts from the inactivation list. At this time we do not reject any accounts before the job is processed. The SIR screen can be accessed on the command line (CMD) on the Employer Master File (EMF).

In February, May, August and November the list of accounts is sent over in the daily tax run to Status Operations Unit (SOU). The assigned accounts examiner will need to keep this list. The list can be found on the Intranet under Status Determination Units 1 & 2 Quarterly Reports Job TXQS0010 (Accounts Eligible for Inactivation).

After the end of the quarter in which the list is produced, approximately the 7th day of the month of April, July, October or January, send an e-mail to Applications Development & Maintenance (AD&M) – Tax Manager and copy the System Analyst and the Supervisor of the assigned accounts examiner who works the list.

The e-mail should state:

“Please schedule TXQS0011 to run at your earliest convenience”.

“This program inactivates EID’s, which have not reported total and taxable wages for the past eight quarters”.

When AD&M has the job processed in the nightly tax run the accounts will no longer be available to view on the SIR screen. The accounts that did not kick out will inactivate, and C-73 letters will be produced with a future date of the 10th which will need to be held & mailed out on that day.

The letters are received in SOU with the daily tax run. The assigned accounts examiner will need to review the C-73 letters for accuracy.

1. When reviewing the letters, make sure you only have C-73 letters under the job cover sheet. SOU can have other letters under the same job number, they will be at the end of the job. The other letters attached will need to be returned to SOU.
   
   
2. Check a few of the account numbers on EMF to see if the account is inactivated and the Transaction Doc Log (TDO) is updated to show a status action with 9999 and showing that the C-73 letter was produced. No copy of the letter is sent to TDO.
   
   
3. Return the C-73 letters to SOU with the original job cover sheet on top of the letters. SOU will return the letters to the mailroom for mailing.

The accounts that did not process will get a status transaction error sheet. No accounts examiner name will be on this sheet. SOU will pull all error sheets with the accounts examiner listed as “name not found” and give them to the accounts examiner that is assigned to work the inactivation list.

The reasons that accounts could fail:

• Recent reopens or closes.
• Accounts with liability under two subsections when one subsection is closed.

1. Review each Status Transaction Error sheet. Verify that the account is closed as of the last wages paid per the C-3’s that are posted. If there are any zero reports posted between the last  C-3 with wages and the close date, amend the close date to reflect the last wages paid. Correct the account via the STA screen.
   
   
2. If the account was reopened check the reopen date against the reports that are posted. There should not be a zero report posted the same quarter the account was reopened.
   
   
3. Check the accounts that have been reopened to verify that the reopen date is correct and the account was not closed for more than three calendar years. If over three calendar years of inactivity, a new account number needs to be assigned because the old account needs to be terminated.

1. If the account was reopened by a state office accounts examiner then e-mail that accounts examiner and copy their supervisor about the incorrect reopen date. If the account was reopened by an accounts examiner in Tax Area 13, then e-mail the supervisor in Tax Area 13 about the incorrect reopen date.
   
   
2. If the account was reopened by a field accounts examiner then send a field assignment by e-mail and copy the accounts examiner’s supervisor to determine correct reopen dates or to determine the correct liability on an account that was reopened in error that should be terminated and a new account number assigned.
   
   
3. If an account was reopened in error but needs to be terminated, the account will need a two day process to correct.
   
   Day 1 Delete the reopen dates on STA screen.
   
   Day 2 Terminate the account – see Chapter 2 - “Inactivations on SNC of Accounts with Inactivation Date”. If there is a C-3 posted assign a pending account number and establish the account under the appropriate liability section - see Chapter 1 - “New Accounts 201.021” or “New Accounts 201.024”.  If the C-3 is less than $1500.00 with no money, send an FL-164 under the pending account number. Send an e-mail to ADP & Audit to journalize the report and money to the new account number, and document FTC with your actions.