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Part 21. Customer Account Services

Chapter 1. Accounts Management and Compliance Services Operations

Section 7. Campus Support

21.1.7  Campus Support

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21.1.7.1  (10-01-2007)
Scope

  1. These procedures apply to all Wage & Investment (W&I) Consolidated (Rampdown) campuses.

  2. This manual provides instructions for:

    1. Receiving mail

    2. Extracting, sorting, and handling of mail

    3. Date stamping of returns and documents where applicable

    4. Overstamping of remittance where applicable

    5. Disposition of returns and all other mail received

    6. Preparation of Form 3210, Document Transmittal

    7. Processing the receipt of payments

    8. Processing cash

    9. Researching payments

    10. Preparing payment voucher

    11. Transshipping

    12. Classification of mail

    13. Routing Source Document Folders

    14. Shipping Refiles

    15. Processing Outgoing Correspondence

21.1.7.1.1  (10-01-2007)
Objectives

  1. The objectives of the mail operation are as follows:

    1. Open and extract mail

    2. Expedite all remittances to Deposit site

    3. Minimize time from receipt of mail through the sorting function to routing

    4. Identify and control all payments for shipping

21.1.7.2  (10-01-2007)
General

  1. Payments and related documents, such as tax returns, must be prepared for shipment to Submission Processing Campus by close of business on the date of receipt from the taxpayer, or as soon as possible the next business day.

  2. For the processing of payments and mail, you may need to reference other Internal Revenue Manuals (IRMs) or Documents such as:

    • IRM 1.16.12, Facility and Property Protection

    • IRM 3.0.167, Losses & Shortages

    • IRM 3.8.44, Campus Deposit Activity Operations

    • IRM 3.8.45, Manual Deposit Process

    • IRM 3.8.46, Discovered Remittance

    • IRM 3.10.72, Extracting, Sorting, and numbering

    • IRM 3.10.203, Mail Receiving and Sorting

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.30.123, Processing Timeliness Cycles Criteria and Critical Dates

    • IRM 25.6.4, Statute of Limitations - Original Delinquent Returns

    • IRM 3.17.278, Paper Check Conversion (PCC) System

    • Document 6209, IRS Processing Codes and Information

21.1.7.3  (10-01-2007)
Managerial Review

  1. IRM 1.16.12, Facility and Property Protection, IRM 1.4.6, Manager Security Handbook, and IRM 1.16.1, Physical Security Handbook, are the prevailing manuals concerning security measures necessary for date stamps, payee name stamps (for negotiating checks), government check stamps, and other stamp devices. Each manual must be consulted to determine the level and type of security required. Give particular attention to the requirements to limit (one specific individual) and protect against unauthorized use of all stamp devices. Serial numbers, where available, must be associated with the specified user(s).

  2. The following items are strictly prohibited from Campus Support:

    • Lunch bags

    • Boxes

    • Purses

    • Backpacks

    • Briefcases

    • Sports bags

    • Bulky outerwear

    • Hats

    • Shopping bags

    • Shoulder totes

    • Fanny packs

    • CD or Tape cases

    • Books

    • Newspapers, magazines, and similar type items

      Note:

      Employees can keep personal items at their desks, eat at their desks (if a past practice has been established), and transport small items not carried on their person in and out of the secured/restricted area of Campus Support, as long as such items are displayed in clear plastic bags.

      Note:

      The use of the camera function, on a camera capable cell phone, is prohibited in the secure remittance processing area.

  3. First line managers, or a designated representative, must conduct monthly random reviews of employees compliance with all security policies as they relate to personal belongings in the secured/restricted area of Campus Support. Each first line manager must maintain a Remittance Processing Security Review Log documenting the review. Management must maintain documentation that includes the date, unit number, employee name, description of items found, and reviewer's initials.

21.1.7.4  (10-01-2007)
Security Responsibilities

  1. Managers must communicate security standards contained in IRM 1.16.12, Facility and Property Protection, to their employees at least once a year. All employees and managers of the Internal Revenue Service and Treasury are accountable for remittances under their control, including security.

  2. Adequate security equipment and facilities must be provided to safeguard money, securities, etc., handled in Campus Support. Managers must contact appropriate Agency Wide Shared Service (AWSS) Security Representative, or Campuses’ Security Function for additional advice or assistance on security matters (refer to IRM 1.16.12, Facility and Property Protection). Money chests, vaults, or cabinets affording adequate security must be available in restricted areas of Campus Support. These containers must comply with requirements contained in IRM 1.16.12, Facility and Property Protection.

  3. Provide clerks with a separate lockable money bag, cash box, or compartment. Each container must be equipped to be opened only by a separate key or combination.

  4. The clerk must lock the safe, vault, money chest, or other receptacle or facility provided therein to store funds or other valuables, including the door of the clerk’s working area whenever the working area is left unattended (refer to IRM 1.16.12, Facility and Property Protection).

  5. The combination and/or duplicate key to lock money chests, vaults, cabinets, money bags, cash boxes or compartments, in which funds are held, must be placed in a sealed envelope for use in the event of an emergency. The envelope containing a combination and/or duplicate key must be stored under the same protection required for containers. The procedures to follow are the same as Field Office Remittance Processing Area, refer to IRM 1.16.12, Facility and Property Protection.

  6. Change the combination or locks on all containers immediately when one of the following conditions exists.

    1. Upon receipt of new lock

    2. Whenever there is a change in clerk

    3. When there is an unforeseen absence of the clerk

    4. When the combination is compromised in some other way

    5. In any event, change combinations at least once a year

  7. If it becomes necessary to open a clerk’s locked compartment in the absence of the clerk, two responsible employees must be selected to use duplicate key or combination. They must count the money and prepare a statement of the money and documents found. Both must sign and attach the statement to the receipt the clerk previously signed for the change fund. The monies and documents are then balanced.

  8. Safeguard cash remittances at all times. Keep cash in a locked container or deposit bag to await deposit pick-up after clerk’s balancing operation is completed. The key to that container is held by the clerk’s immediate manager or other designated employee. Cash conversions to cashier’s check or money order are permitted. Use this action in lieu of safeguarding instructions.

  9. The Mail Team manager, or designated employee, must conduct periodic unannounced reviews of the items on the Cash Receipt Records and Deposit Tickets. Monthly is suggested, no less than quarterly is mandated. Record when the reviews are completed and the findings. Maintain the records of completed reviews for a year at minimum and include whether an in-depth review is necessary.

  10. Only authorized employees may have access to cash vaults. Restrict all areas in which deposit operations take place in accordance with IRM 1.16.12, Facility and Property Protection. Any person entering must be given appropriate clearance from a responsible official. Such clearance must be based on satisfactory identification of individual(s) and appropriate reason for entering.

  11. Managers should report any employee or manager suspected of theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484 immediately. Employees should report any employee or manager suspected of theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484.

  12. Managers of areas receiving Discovered Remittances must perform monthly reviews of Discovered Remittance Logs, Form 4287, Record of Discovered Remittances, and take appropriate action to eliminate or reduce mishandling of receipts.

  13. Use of Internal Revenue Service (IRS) computer systems, such as Integrated Data Retrieval System (IDRS), require conformance to IRM 10.8.1, Information Technology Security, Policy and Guidance.

  14. IRS users and managers of the Paper Check Conversion (PCC) system must view and/or print the U.S. Treasury Financial Management Service Paper Check Conversion Over the Counter Standard Operating Procedures by accessing the PCC web site at https://www.pccotc.gov/pccotc/index.htm.

21.1.7.4.1  (10-01-2007)
Security of Form 809, Receipt for Payment of Taxes

  1. Managers of Remittance Processing Operations have specific responsibilities relating to the security, control, issuance, and destruction of Forms 809. The following procedures are required when handling Forms 809.

    1. Forms 809 are pre-numbered with letter prefixes and issued in numeric sequence. Each series of letter prefixes must be completely exhausted before a new letter prefix is used.

    2. Assignment of Forms 809 must be authorized in writing prior to issuance of a Form 809 book. Keep authorizations in the front of the Form 809, part 3 audit file. Retain authorizations on file as basis for subsequent book assignments as necessary for respective employees.

    3. Individuals, who are authorized to issue Form 809 receipts, cannot be responsible for inventory control of unissued Forms 809.

    4. Individuals assigned Form 809 books must not share the book with others. Once a book is assigned, it is for the exclusive use of the employee to whom assigned. Form 809 books are non transferable.

    5. Each assigned individual's Form 809 book must be stored in a separate locked security container, then stored in a locked container. Refer to IRM 1.4.6.5.1(3), Minimum Protection Standards (MPS).

    6. Official receipts must not be used for training purposes.

    7. To void a receipt, when necessary write "VOID" across the face of all copies. Enter reason for voiding on back of Copy 1. Route Forms 809 to Balancing for accountability and filing.

    8. Periodic reviews of individually assigned Form 809 books must be conducted.

    9. At least once a year, an annual reconciliation must be conducted to ensure all receipts are accounted for.

21.1.7.4.2  (10-01-2007)
Separation of Duties and Form 809, Receipt for Payment of Taxes

  1. Managers must ensure only appropriate employees have Form 809 books and employees with Form 809 books have only research command codes in their Integrated Data Retrieval System (IDRS) profiles.

  2. A command code is considered "sensitive" if it can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability. Sensitive command codes and sensitive command code combinations are discussed in the Law Enforcement Manual (LEM)/Integrated Data Retrieval System (IDRS) Handbook 25.10.3.23.4. Sensitive command codes are listed in Exhibit LEM/IDRS Security Handbook 25.10.3-2. Sensitive Command Code Combinations are listed in Exhibit LEM/IDRS Security Handbook 25.10.3-3.

21.1.7.5  (10-01-2007)
Receipt of Mail

  1. Mail is received via the United States Postal Service (UPS) and from AWSS personnel.

    1. Mail delivery truck follows campus security guidelines for admittance.

    2. Security Guard opens the loading dock door and meets the delivery truck.

    3. Security dog explores the truck, per security guidelines. If the Security Dog identifies suspicious package, follow Hazardous Material (HAZMAT) Procedures.

      Note:

      This applies only to campuses with a Security Dog.

    4. UPS employees unload the truck.

    5. Mail is placed in cages.

    6. Security Guard ensures the loading dock door is closed.

21.1.7.5.1  (10-01-2007)
Received Date

  1. All mail received in Mail Sorting area requires the received date on the postal container.

  2. Mail forwarded to the sorting area must be controlled using the following procedures:

    1. Attach a control slip to each postal container indicating received date to the campus. The control slip can be a piece of paper, a Campus form, or a Form 3210, Document Transmittal.

    2. Ensure that this control slip containing the received date is retained with the batch of mail when forwarded to the Extraction area.

21.1.7.5.2  (10-01-2007)
Sorting and Slicing

  1. Mail must be opened in a controlled and restricted area.

  2. Mail cages are delivered to mail team personnel for opening using SCAMPS, slicers, or alternative automated mail opening equipment.

  3. Large mail envelopes and boxes are sorted out. Hand slicers manually slice the mail that cannot be opened by machines. If suspicious, follow emergency procedures.

  4. All other mail is processed through mail opening equipment.

21.1.7.5.3  (10-01-2007)
Mail Extracting and Processing General

  1. Mail must be extracted in a controlled and restricted environment.

  2. The individual campus determines the presence of statute. Forward all statute delinquent returns with potential Assessment Statute Expiration Date (ASED) to the Statute function for clearance prior to transshipment. For additional information, see IRM 25.6.4, Statute Limitations.

  3. The individual campus determines what types of mail, i.e. Directors, TIGTA, etc. that cannot be opened by Campus Support. Those functions must extract their own mail within the confines of the mail room.

  4. Mail is extracted and date stamped in redink. See IRM 3.10.72.8, Date Stamping.

  5. Mail is sorted in the following priority order:

    1. Statute returns with or without payments

    2. Centralized Offer in Compromise (COIC) with & without payments

    3. Centralized Insolvency with & without payments

    4. Balance Due notices with payments

    5. CP 2000 with payments

    6. Returns with payments

    7. Returns without payments

    8. ASFR returns and correspondence

    9. Claims, Letter 854C responses, Form 843, Claim For Refund and Request for Abatement

    10. CP 2000 without payments

    11. No Balance Due Notices

    12. Loose Schedules

    13. IDRS Letters

    14. All other mail

  6. Although certain sorts are mandatory per this IRM, it is the prerogative of any campus to add additional sorts either by enhancing a required sort or by introducing a new sort.

21.1.7.5.4  (10-01-2007)
Sorting Undeliverable Mail

  1. In addition to the normal instructions for extracting envelope contents, the following additional instructions apply if the envelope and contents are classified as undeliverable mail.

  2. If the undeliverable mail piece is any one of the following, destroy the undeliverable mail as classified waste:

    • Form 1099

    • FTD Coupon Books

    • Form W-4 Rtn2Emp

    • IRS Returns & Tax Packages

  3. Staple the envelope to the front of the unfolded contents for any item not covered in (2) above.

  4. Return Undeliverable, certified/return receipt requested mail to the Campus function that requested it. (DO NOT DETACH FORM 3811 from the mail piece.) Follow the table below:

    ITEM DESTINATION
    Correspondence Originator
    Items with address correction Originator
    Computer Paragraphs See Exhibit in IRM 3.13.62 - 56
    Dishonored checks Accounting
    Form 809, Receipt for Payment of Taxes Originator
    Loose Schedule 1 (Form 2290) Accounts Management Branch
    Special Tax Stamps Entity Control
    Tax Practitioner Items Appropriate Function

  5. Sort all undeliverable mail, other than notices, by name or employee number of originator and forward to respective areas.

  6. Undeliverable mail must always be date stamped in a conspicuous place if it is not to be destroyed.

  7. Campus Support transships all undeliverable mail receipts designated for Files to the appropriate Submission Processing Files. See Exhibit 21.1.7-2, Campus Files Address.

21.1.7.5.5  (10-01-2007)
Offer in Compromise (OIC)

  1. OIC is centralized at the Brookhaven and Memphis Compliance Campuses. Taxpayers are instructed to mail their offer to Brookhaven or Memphis. When an OIC Fee payment is received, the payment is sorted into two categories:

    • $150.00

    • Other than $150.00

  2. Campus Support will release all OIC mail to the Centralized Offer in Compromise (COIC) employee co-located in Campus Support.

  3. When Form 13479, OIC Application Fee Tracing Report, is received from COIC, Campus Support:

    • Verifies the information on each remittance by initialing and dating each line under column "Campus Support Initials/Date" .

    • Gives a copy of Form 13479, COIC Application Fee Tracking Report, to COIC.

    • Mails any letter along with the remittance (money orders, Bank check or Gov't Check), if COIC indicates the remittance is to be sent back to the taxpayer.

    • Processes the payments

21.1.7.5.5.1  (10-01-2007)
Processing Centralized Offer in Compromise (COIC) Payments via Paper Check Conversion (PCC)

  1. As of April 1, 2005, IRS began using a new technology to process COIC checks. This technology is known as Paper Check Conversion System (PCC). The PCC system scans checks and automates the receipt, acceptance, transferring and recording of funds. PCC is a process for converting checks into electronic fund transfers. The paper check is no longer sent to the bank. The checks are retained for 14 days, then placed in classified waste.

  2. Daily, Brookhaven and Memphis Campus Support must fax a copy of the PCC Deposit Breakdown Sheet and Forms 13479, COIC Application Fee Tracking Report, for the current day deposit to the designated fax number at Cincinnati Submission Processing Accounting Department. Campus Support must send via overnight mail delivery the PCC/OIC package which includes the batch listings, Form 13479, COIC Application Fee Tracking Report, and the original Forms 2515, Record of Offer in Compromise, to Cincinnati Submission Processing Accounting Department. Instructions for processing OIC checks by PCC are located in IRM 3.17.278.4, PCC Processing Centralized Officer In Compromise (COIC) Payments, and by accessing the PCC web site @ https://www.pccotc.gov/pccotc/Downloads/r51downloads.htm.

21.1.7.5.5.2  (10-01-2007)
Manual Processing COIC Payments

  1. The following payments cannot be processed through PCC, therefore they are processed manually:

    • Tax payments (Form 3244, Payment Posting Voucher) that are not split payments

    • Government checks not endorsed

    • Third party checks not endorsed

    • Foreign checks

    • Any check that cannot be read by PCC scanner

  2. All checks that are unable to be scanned by PCC are transshipped to Cincinnati Submission Processing via overnight mail delivery. Campus Support prepares Form 3210, Document Transmittal, and list each check that failed to scan through PCC. The following must be listed on each Form 3210, Document Transmittal:

    • Offer Number

    • Taxpayer Identification Number (TIN)

    • Name Control

    • Check Number and Amount

    • Deposit to 4710 Account - Symbol Number 20X6879

  3. The Form 3210, Document Transmittal, is attached with a copy of the related Forms 13479, COIC Application Fee Tracking Report, and Forms 2515, Record of Offer in compromise, with the unprocessable item lined through. A copy of Form 3210, Document Transmittal, is faxed to Cincinnati using the designated Cincinnati fax number.

21.1.7.5.6  (10-01-2007)
Centralized Insolvency Operation (CIO) Payment Processing

  1. Insolvency payments or Bankruptcy Trustee checks are sent to the Philadelphia Campus Support for processing. The Chief Financial Office (CFO) established and authorized the use of a "suspense" account for the deposit of these remittances prior to the research and application of the payment to the taxpayers’ accounts. The purpose of this process is to expedite the government's availability of funds for these large dollar payments.

  2. Trustees should mail the insolvency checks to a Post Office Box designated specifically for these checks. The address is:

    Internal Revenue Service
    P. O. Box 21125
    Philadelphia, PA 19114-0325

  3. Trustee payments sent by overnight mail are sent to:

    Internal Revenue Service
    Mail Drop Point N -781
    11601 Roosevelt Blvd.
    Philadelphia, PA 19154–2100

  4. Campus Support retrieves mail from Insolvency P.O. Box and the Campus street address. Campus Support extracts mail from the envelopes. The envelopes and any enclosures are attached to the check. The envelopes are stamped with the IRS received date. The checks are given to CIO employees co-located in Campus Support.

21.1.7.5.6.1  (10-01-2007)
Responsibilities of the Centralized Insolvency Operation (CIO) Employees

  1. CIO employees review the checks and divide the checks into two categories:

    • Insolvency Payments processed in Philadelphia

    • Non-Bankruptcy payments mis-routed to Centralized Insolvency

  2. Payments mis-routed are returned to Campus Support for transshipment to appropriate processing Campus.

  3. CIO employees take the following actions on checks processed by Philadelphia Campus Support:

    • Detach envelopes and attachments from original checks

    • Photocopy the check

    • Associate envelopes and any attachments with copy of check

    • Prepare Form 3210, Document Transmittal, listing individual check amounts and trustee name

    • Provide Form 3210, Document Transmittal, with original checks to Campus Support

    • Deliver copy of checks with attachments to CIO Payment Posting Team

21.1.7.5.6.2  (10-01-2007)
Processing Insolvency Payment Process via Paper Check Conversion (PCC)

  1. The PCC system scans all trustee checks, both single and multiple cases, and automates the receipt, acceptance, transferring and recording of funds. PCC is a process for converting checks into electronic fund transfers. The paper check is no longer sent to the bank. They are retained for 14 days, then placed in classified waste.

  2. Campus Support is responsible for taking steps to deposit checks as follows:

    1. Scan Insolvency payment checks and transmit check information daily to the Federal Reserve Bank (FRB) Cleveland via the Paper Check Conversion (PCC) System.

    2. Retrieve the deposit ticket information from the Electronic Verification and Imaging System (ELVIS) each day for the prior day’s scanned checks. Balance the deposit information with the scanned checks.

    3. Write the DOC ID number assigned to the batch list on the top of the batch listing. The DOC ID is a unique 14 digit number (e.g. 01046250000087). The first three numbers are the Julian date (shown as the transaction date on the ELVIS 215 deposit ticket report), the next four identify the suspense account (4625), the next six are the deposit ticket number, and the last digit is the List year.

    4. Provide the Insolvency Payment Posting Team with the deposit ticket report, a copy of the Form 784, Recapitulation of Remittance, and a copy of the batch list from ELVIS showing all checks included in the day’s deposit.

    5. Acknowledge all Forms 3210, Document Transmittal, used to transmit Insolvency payments and return designated copy to CIO.

    6. Supply Ogden Interim Revenue Accounting Control System (IRACS) Team the "accounting package" , which includes a copy of the deposit ticket, and batch list (both showing the DOC ID), and Form 784, Recapitulation of Remittance.

    7. Notify CIO Payment Team manager of any checks that could not be scanned via PCC. Campus Support prepares Form 3210, Document Transmittal, and sends these checks overnight to Ogden’s Deposit Team. The checks MUST be identified as Insolvency checks, so that they are not processed as regular remittances and to insure they are deposited into the 4625 suspense account.

  3. If PCC is down for more than one day, Campus Support must transship the CIO payments to Kansas City for processing.

21.1.7.5.6.3  (10-01-2007)
Posting Checks to Taxpayer Accounts

  1. Centralized Insolvency Processing Responsibilities:

    1. Pick up the prior day’s deposit ticket report generated from ELVIS, Form 813-A, Recapitulation of Document Register, and copies of any edited vouchers or vouchers requiring manual input from Campus Support.

    2. Post payments to the Automated Insolvency System (AIS), allocate and generate vouchers, substitute Forms 3244, Payment Posting Voucher.

    3. Ensure vouchers are equal to the check total.

    4. Separate vouchers into packages (blocks) of 20 or less.

    5. Prepare Form 3210, Document Transmittal.

    6. Deliver Form 3210, Document Transmittal, and accompanying vouchers with a copy of the check annotated with the DOC ID number to Campus Support.

  2. Campus Support Processing Responsibilities:

    1. Acknowledge Form 3210, Document Transmittal, for vouchers received from CIO.

    2. Sort voucher packages by Julian date of deposit and utilizing Command Code (CC) PAYMT to credit the taxpayer's account and generate tax class totals. See IRM 3.8.45.39.1.2, AIS Payments: Procedures for Payment Perfection Employees for Posting AIS Payments to IDRS, for procedures for inputting payments using IDRS with CC PAYMT.

      Caution:

      Command Code PAYMT must be input at the Accounting support site. If the employees do not have automated access to the support site, CC CMODE must be used to access the support site.

    3. Vouchers that are adjusted to allow processing through IDRS are annotated with change. A copy of the adjusted voucher is given to CIO.

    4. Print two copies of the CC PYBAL total page that is generated from input of CC PAYMT for each block of vouchers entered. One copy remains with the voucher block and one copy is associated with the tax class total page.

    5. The employee inputting CC PAYMT prints the tax class total page at the end of each day for all work they entered using CC PAYMT.

    6. Balance CC PAYMT input tax class totals. Information on payment transactions input through IDRS feeds into the end of day (EOD 2421) Area Office Remittance Register (AORR) report.

    7. Balance tax class totals by comparing dollar total of PYBAL to totals from tax class page, any variances must be reconciled.

    8. Separate and balance payment by tax class.

    9. Enter tax class totals on Form 813-A, Recapitulation of Document Register, by tax class.

    10. Balance Form 813-A, Recapitulation of Document Register, for each Julian date.

    11. Notify Ogden Accounting of any corrections needed for input discrepancies identified during balancing.

    12. Vouchers that cannot be processed via CC PAYMT, such as Non-Master File (NMF), are sent by Campus Support to Ogden Accounting for input. Ogden prepares the Form 813, Document Register. These are called manuals and do not feed into the Area Office Remittance Register (AORR EOD 2421). Campus Support provides a copy of vouchers that could not be processed through IDRS to CIO.

    13. Retain vouchers until the end of month. After suspense account is balanced, forward to Ogden Files.

21.1.7.5.6.4  (10-01-2007)
Balancing Suspense Account 4625

  1. Insolvency payments are deposited into a suspense account. The account is cleared once all vouchers are processed. Ogden Accounting is responsible for the following:

    1. Journalize the deposit created by checks that were scanned by Campus Support into the IRS suspense account 4625.

    2. Create a spreadsheet to track suspense account activity. A copy of the spreadsheet is sent to CIO weekly via email to *SBSE PHI Centralized Insolvency.

    3. The AORR report is used by Ogden Accounting Interim Revenue Accounting Control System (IRACS) to balance the suspense account for that particular day’s deposit.

    4. Generate a report, if the deposit does not balance, any differences are resolved with Campus Support.

    5. Prepare a journal entry to clear the suspense account based on Campus Support input of payment vouchers.

    6. Identify checks not cleared from the suspense account within 15 days and report these aged items to Campus Support. A copy of this report is sent to the CIO Payment Team manager.

21.1.7.5.6.5  (10-01-2007)
Insolvency Payment Processing with Front End Electronic Federal Tax Payment System (EFTPS)

  1. A trustee may transmit payment and insolvency voucher information to the EFTPS agent, Bank of America. Bank of America creates a pseudo deposit ticket and insolvency voucher report. Bank of America sends the deposit ticket and insolvency voucher file report to the IRS Enterprise Computing Center (ECC) in Memphis. The IRS system administrator forwards the insolvency voucher file to the Centralized Insolvency Operation in Philadelphia. The IRS IRACS system receives Federal Reserve Bank credits for the trustee payments and journals them to suspense account.

  2. Insolvency Payment Unit posts payments to Automated Insolvency System (AIS), allocates and generates vouchers, substitute Forms 3244, Payment Posting Voucher, These vouchers are balanced to the check and forwarded to Campus Support. Utilizing CC PAYMT, Campus Support enters voucher information into IDRS applying credit to the taxpayer's account.

  3. IDRS generates an end of day Remittance Register report. The report lists all payment transactions input by Campus Support on a given date. The report is used by IRACS to balance the suspense account for that particular deposit. IRACS generates a report. If the deposit does not balance, any differences are resolved with Campus Support

21.1.7.6  (10-01-2007)
Extraction of Envelope Contents

  1. Envelopes must be opened and contents removed. This includes envelopes attached to packages or wrapping paper. If contents are torn or were sliced in opening, repairs must be made immediately in a manner that allows proper processing.

  2. Emptied envelopes are subject to the candling equipment to ascertain that all contents were removed.

  3. Extracted envelopes must be placed in a container which bears the extracting employee’s name or number.

  4. The envelopes received via flats and fats must further be sliced on three sides to ensure removal of contents.

  5. Returns must be sorted into "remittance" and "non-remittance" into the following categories:

    • COIC

    • CIO

    • Notice

    • Form

    • Correspondence

  6. Taxpayers and Tax Preparers sometimes request the IRS to acknowledge receipt of data. When this is the case and unless specifically instructed otherwise:

    1. Verify any group of returns or documents received before acknowledging receipt.

    2. Stamp the document" Received by Campus, date, United States Treasury, city, and state" .

    3. Mail the stamped request. If an envelope is provided, use it. Otherwise, provide one with the appropriate address.

    4. Destroy any duplicate copy.

  7. When a return is received with a credit card, take the credit card to the unit manager immediately. The manager records the last four digits of the credit card number, expiration date, the taxpayer's name, and last four digits of the Social Security Number (SSN), just as is done when cash is received with a return. The manager edits an Action Code 460 on the return and the return is processed using normal extracting function procedures. The credit cards are hand-carried to the Payment Function.

    Note:

    An Action Code 460 is edited on the return prior to transshipping the return for processing. The Action Code 460 suspends the return to Rejects for 25 days. An Action Code is entered in "RED" ink in the bottom, center margin on the front page.

  8. Forward all statute delinquent returns with potential ASED to the Statute function for clearance. See IRM 25.6.4, Original Delinquent Returns, for additional information.

21.1.7.6.1  (10-01-2007)
Extraction of Envelope Contents with Remittance

  1. Any return or document received with a check or money order is classified as "With Remittance."

  2. As soon as all government checks are extracted, Extraction personnel stamp each check with "Unless for Credit to the United States Treasury this Instrument is Non-Negotiable." The check must be stamped underneath the "Pay to the order of" .

    Note:

    This stamp must not obscure any printing on the face of the check.

  3. All payee lines must be overstamped "United States Treasury" at the point of extraction See IRM 21.1.7.9.1, Overstamping.

  4. All types of remittance are picked up and taken to the Form 3210 preparation area.

  5. For any return or document with an item of value other than a check or money order, See IRM 21.1.7.9.6, Unacceptable Payments.

  6. When a remittance of $1 million or more is discovered, the discoverer must immediately carry it to their manager with the return or document. The manager immediately carries it to the Form 3210 preparation area for shipment to Submission Processing Deposit site.

  7. When a remittance of at least $50,000 but less than $1 million is discovered, it is placed on the top of the work pile and so identified.

21.1.7.6.2  (10-01-2007)
Sorting

  1. The United States Postal Service sorts and delivers mail by PO Box number. Extractors maintain PO Box integrity.

  2. Mail received without a PO Box is sorted during extracting.

  3. Mail which cannot be identified by extractors is forwarded to the Mail Classification area.

21.1.7.6.3  (10-01-2007)
Mail Classification (White Mail)

  1. Mail is sorted using local stop numbers and cross referenced to:

    1. IDRS Number

    2. Local CP notice routing list

    3. Transshipping

    4. Master File (Individual Master File (IMF), Business Master File (BMF), etc.)

    5. Stop Number

    6. Local Sort

    7. Transcripts

  2. Route mail, per SERP Web Site under Local Site Document at http://serp.enterprise.irs.gov/databases/local-sites-other.dr/local.dr/local_doc.html, and Campus Program Local Guide, at http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide.doc.

21.1.7.6.4  (10-01-2007)
Candling Procedures

  1. Candled Envelopes

    1. Envelopes that are not attached to returns or documents are destroyed. Each envelope must be subject to initial and final candling prior to destruction.

    2. Candling is the process of looking for documents and/or remittance left inside envelopes after extraction.

    3. Initial candling of average size white envelopes is performed at sorting (extracting) tables and involves passing individual envelopes over a lighted section of the table or slicing envelopes on three sides prior to placing them in a container, which bears the employee's name or number.

    4. Employees working at tables not equipped with lights or at tables where lights are inoperable, slicing of average size white envelopes on all three sides are required.

    5. Sweepers or clerks, who pick up envelope containers after initial candling, must check each bag to ensure the identifying tag which bears the employee's name or number is clearly visible.

    6. Final candling of average size white envelopes is when envelopes are taken to a lighted table (separate from sorting/extraction tables) where the individual envelopes are again passed over a lighted section prior to envelope destruction.

    7. Final candling by a single employee in an unsupervised environment is prohibited. Employees working final candling must be clearly visible by other employees, or the supervisor. Boxes, carts, crates, etc. must not block view of employees performing this work.

    8. Envelopes, including those manually extracted, Flats, Fats, Colored or opaque, etc. are subject to initial and final candling prior to destruction. Initial candling of this type requires that the envelope be sliced on three sides and opened flat to assure no contents are left inside envelope. They must then be placed in a container which bears the employee's name or number and final candled. Final candling requires that the slit envelopes be visually examined prior to placing them in a container for disposal. If any content is found, process it as the only item received.

    9. Envelopes that cannot be slit and opened, extractors are required to pull the envelope inside out to ensure no contents have been left inside.

    10. Item found, use the envelope postmark date as received date, if a SCAMPS date is not available.

    11. Discovered remittance found, See IRM 21.1.7.9.8, Discovered Remittance.

    12. Non-remittance items found during final candling are given to management with extractor information to provide feedback to employee who overlooked item while candling.

    13. Management must maintain a log, Form 13592, Candling Log R&C Discovered Documents/Remittances, to record remittance found during final candling. An employee designated by management must immediately record these items into the final candling log.

    14. Management must initial the log to validate that all available information is correctly entered and ensure that all remittances listed in log are brought to the Deposit Function on a daily basis. This must be completed for each shift working in Campus Support.

    15. When bringing items to the Deposit function, make one photocopy of Form 13592, Candling Log R & C Discovered Documents/Remittances. Bring both copies to deposit function with one copy remaining with the remittance. The other copy must be signed by Deposit and brought back to the final candling function to be maintained in the log book.

    16. When Deposit Function is not available, remittance must be stored in a secure location until Deposit is available to sign for remittance. When this situation occurs, notate log to account for any delays in deposit.

  2. Candling Equipment Maintenance

    1. Candling equipment, on both initial and final candling tables, must be adjusted as necessary, to maintain maximum envelope recognition.

    2. Maximum envelope recognition is determined by the measurement of foot candles through use of a light meter. Minimum reading on light meter must be 174. Bulbs that do not meet the minimum requirement must be replaced.

    3. Testing of the candling equipment must be completed twice yearly. Ensure testing is completed prior to peak time-frames.

    4. Management or designated employee must complete candling equipment review log to verify lights are meeting minimum requirements.

    5. Candling equipment review log must contain the following information: Date, Sorting Table Location, Foot Candle Measurement and Reviewer's Initials.

21.1.7.6.5  (10-01-2007)
Attaching Envelopes to Returns and Documents

  1. Attach envelopes to the back of returns or documents in a vertical position. When envelope is too long, attach in a horizontal position.

  2. Attach envelopes to correspondence or documents that cannot be identified.

  3. Always attach envelopes to:

    1. Fiscal year returns

    2. Automated Collection system (ACS) mail

    3. Delinquent Returns

    4. Prior year and Statute Returns

    5. Returns missing entity information

    6. Centralized Insolvency mail