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Part 21. Customer Account Services

Chapter 3. Taxpayer Contacts

Section 4. Field Assistance (Cont. 1)

21.3.4  Field Assistance (Cont. 1)

21.3.4.6  (04-01-2007)
Time Reporting for TAC employees

  1. Document 12156"Form 5311 User Guide" is to be used to ensure standardization of time reporting for all Taxpayer Assistance Centers (TACs).

  2. TAC employees and backup employees (details-in) must accurately report the number of customers assisted, the amount of time spent and the type of each inquiry.

  3. Form 6148A, Field Assistance Contact sheet, Q-MATIC, and Form 5311, Field Assistance Activity Report, are means of capturing and reporting data.

  4. Use Form 6148A to record contacts if Q-MATIC is not available. Contacts recorded on Form 6148A should be recorded in 15 minute increments.

  5. Record time reporting information every day, and submit it to your manager at the end of each week on Form 5311, Field Assistance Activity Report.

21.3.4.6.1  (10-01-2007)
Q-MATIC

  1. All TACs equipped with the Q-MATIC system will use the ten standard ticket categories (return preparation, tax questions, forms, cash payments, non cash payments, notices and letters, multilingual interpreter, W-7, scheduled appointments, and other) and the standardized closing codes. Standardization is necessary to ensure nationwide consistency of the data collected. See Exhibit 21.3.4-3 for final approved closing codes.

  2. Matter Codes Served Per User, Report 272d, must be pulled daily for all TAC employees, including detailees, to accurately fill out the Form 5311, Field Assistance Activity Report. Report 272d is used to accurately report the number of customers assisted, the time spent with each customer, and the type of inquiry.

  3. Employees will enter the appropriate closing code at the conclusion of a contact. Employees will enter a single closing code for the service that took the longest time to provide.

    Exception:

    When EITC is addressed as a secondary issue, an additional closing code will be entered after the primary code.

    Example:

    An employee takes 25 minutes to address a taxpayer's lien issue and 10 minutes to resolve her EITC issue. The employee will close the contact by entering closing code 302 (Lien/Levy/OIC) first then closing code 301 (EITC Account Related/Notices) second. When tax law is the primary issue, closing code 596 (EITC Tax Law Related) will be entered last. Time will be tracked under the first closing code entered.

  4. A customer contact representing more than one taxpayers will be closed as a multiple contact. For example, a representative with issues involving five separate tax identification numbers (TIN) will be entered as five separate closings. Do not use multi-send, enter each TIN as a separate closing.

  5. 700 series memo codes must be entered after all closing (matter) codes have been entered. For example, enter the Spanish speaking memo count 724 after you enter the primary closing codes.

  6. All units should be counted on Q-MATIC, regardless of whether the employee has access to Q-MATIC at their desk. If employees are working on contacts, such as return preparation, referrals and retrieving messages from the 3709 Line and do not have immediate access to Q-MATIC, these contacts will be captured before the end of the day using the Multi-Send function.

  7. Guidance contained in Document 12156, Form 5311 User Guide, as well as the Q-MATIC User’s Guide, should be interpreted as IRM.

  8. Document 12069, which explains the Q-MATIC numbering system and the routing process, will be made available to customers in all TACs. At full Q-MATIC sites, the IAR will provide the customer the document when issuing a Q-MATIC ticket, and will advise the customer of the approximate wait time. At Hybrid and Q-LITE sites, a supply of the documents will be placed near the Q-MATIC ticket or Q-NOVA machines. The requirement to advise customers of the approximate wait time is waived for these sites.

21.3.4.6.1.1  (04-01-2007)
Q-MATIC Ticket Process

  1. All Field Assistance groups will use a standard process for directing customers, using Q-MATIC. The process is as follows.

    Full Q-MATIC Sites
    Group Manager sets Q-MATIC priority based on available employees, number of appointments, and expected traffic.
      1) Customer enters TAC and selects a Q-MATIC ticket or is assisted in selecting a ticket by the IAR.
      2) ITASs who are assigned to work appointments will be prioritized to receive that work ahead of other categories.
      3) Customers wanting to pick up a blank form or to make a payment should have priority or have the IAR or one ITAS dedicated to work these issues. The IARs first priority is always to ensure customers have received a Q-MATIC ticket. When there is no line of customers the IAR can assist customers needing forms or payments.
      4) Filing Season return preparation appointment procedures:
        a) Customers requesting return preparation are screened for eligibility.
        b) If customer does not meet return preparation criteria close out contact using appropriate return prep screening closing code.
        c) If customer meets criteria and an appointment is immediately available, place customer in the holding queue and close ticket after return is completed.
        d) If customer meets criteria and an appointment is made for a future time, close out the contact using the return preparation screening closing code.
        e) If there is no Q-MATIC system at the return preparation workstation ITAS should use walk direct to capture contact.

    Q-LITE / Hybrid Sites
      1) Customer enters TAC and takes a Q-NOVA ticket.
      2) Customers are handled on a first come, first served basis except for the following:
        a) Customers wanting to pick up a blank form or to make a payment should be given priority whenever possible. For example, before calling the next ticket number the ITAS could ask the waiting customers if anyone just needed a blank form or to make a payment by check and has a current notice. These customers would be assisted first to alleviate waiting room congestion and because the contacts are fairly quick. Walk direct should be input for each of these customers as they are helped.
        b) Customers with appointments would be called as close to their appointment time as possible.
      3) Filing Season return preparation appointment procedures:
        a) Customers requesting return preparation are screened for eligibility.
        b) If customer does not meet return preparation criteria close out contact using appropriate return prep screening closing code.
        c) If customer meets criteria and an appointment is immediately available, place them in the holding queue and close ticket after return is completed.
        d) If customer meets criteria and an appointment is made for a future time, close out the contact using the return preparation screening closing code.

21.3.4.6.2  (10-01-2005)
Form 5311, Field Assistance Activity Report

  1. Employees assigned or detailed to the FA program MUST report work units and hours on Form 5311:

    1. Complete Form 5311 before 8:30 AM on the day following the work completed.

    2. Add units and hours in the "Week Cumulative" column at end of each week.

    3. Add total units and hours across AND down.

      Note:

      Accuracy is critical. Review your math carefully.

    4. An electronic version of the Form 5311 is available on-line and should be used.

  2. Group managers will send a copy of Form 5311 for detailees to the respective functional (e.g. SB/SE) managers. Any differences will be resolved at the local level.

  3. Only RMIS will be used to track resources expended for detailees / back-up.

  4. All delinquent Form 5311 and all necessary revisions and/or deletions to previously input data after the normal cut-off will require an Open Window Request to Headquarters. See IRM 1.4.11, Field Assistance Guide for Managers.

21.3.4.7  (10-01-2007)
Receipt of Payments

  1. TACs will only accept standard forms of payment from customers, such as checks, money orders, and cash. Document 10161, "Payments May Be Made By" will be posted in all TACs to inform taxpayers of this procedure. Refer to IRM 5.4.1.10 Acceptable Remittances for other types of acceptable payments.

  2. Unacceptable payments are items that the Federal Reserve Bank will not accept as payments (i.e. gold, silver, etc.). For further guidance, refer to IRM 5.4.1.12 Unacceptable Remittances.

  3. Although credit cards are not accepted at the TAC, taxpayers can pay by credit card by calling a service provider and following their instructions. Advise the taxpayer that the service providers charge a convenience fee based on the amount of the tax payment. The service providers are:

    Taxpayers do not need to be enrolled in the program to make a payment. For more detailed information on the credit card payment program see IRM 5.14.10.5.

  4. Form 809 is currently the only authorized receipt for payment of taxes and will be provided upon request. If a taxpayer does not request an official receipt for a non-cash payment, but requests acknowledgement, employees may use a copy of the remittance stamped with a Proof of Delivery stamp.

  5. Take special care when processing payments to ensure that the correct amount is applied to the correct account, so that the money will not erroneously refund to the taxpayer. If the customer does not have a tax form, notice tear-off, or payment voucher, a posting document must be prepared (e.g. Form 3244, Form 809, or similar posting document) during the contact. See IRM 21.3.4.7.1.1 Posting Documents. Check IDRS to ensure that the Taxpayer Identification Number (TIN), MFT, Tax Period, and Name are correct on the prepared document.

  6. In the case of a third party who demonstrates the willingness and means to pay, IDRS research should also be completed. This will ensure the accuracy of the information. If the third party does not intend to full pay the account, the balance should not be disclosed to the third party. See IRM 11.3.11.10 Disclosure of Amount of Outstanding Lien for additional information.

  7. Be sure to check for the earliest Collection Statute Expiration Date (CSED) when applying payments. If the taxpayer does not provide specific written instructions as to the application of payment, the Service will apply the payment to tax periods in the order of priority that the Service determines will serve its best interest. The payment will be applied to satisfy the liability for successive periods in descending order of priority until the payment is absorbed. Overages should generally be applied to the earliest period.

  8. A cash box used to store checks, 809 books, and cash can not be locked in an overhead file. Upon acceptance of the remittance, immediately place the payment and posting document in a locked container. A locked container is defined as any metal container with riveted or welded seams which is locked and to which keys and/or combinations are controlled. Access to the safe must be limited to designated employees and the group manager. The safe must be locked at all times when not in use.

  9. Employees are prohibited from storing personal belongings with any taxpayer related documents. Taxpayer receipts cannot be stored in the same storage container / cabinet where employee personal items are stored. Personal items and taxpayer related documents must not be stored in the same container under the same locking device.

  10. All payments must be recorded on Form 795, Daily Report of Collection Activity, by close of business the day it was received, or as soon as possible on the next business day. Reconcile all receipts with the payment information on Form 795 before submitting for review or forwarding to the Submission Processing Center. See IRM 21.3.4.7.3 for Form 795 procedures.

  11. Pursuant to 26 USCS employees are responsible for protecting and safeguarding monies that they have collected. In the event that an employee loses or fails to account for and pay over the money collected, an assessment for the loss may be made against the responsible employee and may be collected from the employee as if it were a tax. This is in addition to any disciplinary action taken against the employee.

  12. Certain payments presented at a TAC may vary from normal remittance processing procedures. These are discussed later in this section.

    • Single payments of $100,000 or more ( IRM 21.3.4.7.3.1 (5))

    • Form 656, Offer in Compromise ( IRM 21.3.4.7.7)

    • Restitution Payments ( IRM 21.3.4.7.8)

    • Indemnity Agreements ( IRM 21.3.4.7.9)

    • Returned Refund Checks ( IRM 21.3.4.7.10)

21.3.4.7.1  (10-01-2007)
Non-Cash Payments

  1. Verifying Payments

    1. Checks and money orders should be made payable to "United States Treasury" . Checks and money orders made payable to "Internal Revenue Service" , "U.S. Treasury" , or "Department of The Treasury" can still be accepted and processed. Checks and money orders made payable to "IRS" or left blank must be over stamped with "United States Treasury" , immediately upon receipt.

    2. Do not accept checks that are postdated. Ensure that the check or money order date is no later than the date of receipt. Notes asking the IRS to hold the check cannot be left attached when processing payments to Submission Processing Centers. If the taxpayers insist on having the note remain attached, you must explain the note is not allowed. In the event notes are left attached asking for delay in processing, the TAC employee will be issued a postdated check error via Form 5919

    3. Verify all money amounts on checks and money orders. The numeric dollar amount and the amount written in words must match.

    4. Verify that an authorized signature appears on the check or money order. However, if the remittance is unsigned, and the taxpayer is not available to sign the check or money order, the unsigned check should be submitted for processing.

    5. Whenever possible, encourage the taxpayer to include the following additional information on the check or money order such as:

      • Taxpayer's name and address

      • Daytime telephone number

      • Plan number, for employee plans accounts

      • Tax period

      • Type of tax

  2. The canceled check or money order is the taxpayer's proof of payment. When a taxpayer insists on getting a receipt, issue Form 809, Receipt for Payment of Taxes. Form 809 is the ONLY official receipt. When Form 809 is issued, it serves as the posting document unless the payment is received with a return.

  3. Some taxpayers may insist on receiving proof that their non-cash payment has been delivered to our office. Each TAC should be equipped with a date stamp that reads "PROOF OF DELIVERY ONLY — THIS IS NOT AN OFFICIAL RECEIPT." You may stamp a photocopy of the taxpayer's check or money order with this stamp as proof of delivery

  4. If a remittance is received that is endorsed by the payee in such a manner that it is negotiable, it must be restrictively endorsed immediately below the last endorsement by writing or stamping "For Deposit Only - United States Treasury."

    Example:

    A check made payable to the taxpayer may be accepted if the taxpayer has endorsed it.

    Example:

    A check made payable to a third party may be accepted if the third party has endorsed the check over to the taxpayer and the taxpayer has endorsed it.

  5. A taxpayer may be required to provide a replacement check / money order because the original payment was lost in transmission. The date of receipt cannot be back dated to the original date of submission. Replacement checks / money orders received must be processed with the received date as the posting date. Adjustment and referral procedures must be followed to ensure the taxpayer is not harmed with additional assessments because of the posting of the replacement check / money order. Prepare a referral for follow-up after the payment posts to abate the excess amount.

    Example:

    Payment originally received 2/22/2006, overnight package lost, taxpayer is contacted for a replacement check. The replacement check is received 3/31/2006, we process the payment with a posting / receive date of 3/31/2006. The adjustment on the account would be prepared for the abatement of interest and penalty from 2/22/2006 to 3/31/2006.

  6. If the non-cash payment is received without a pre-printed document for posting, prepare Form 3244 (through Desktop Integration) or other acceptable posting document. See IRM 21.3.4.7.1.1 Posting Documents. Verify the name, TIN, MFT, and tax period or user fee for which the payment is intended. Apply payment as follows:

    If And Then
    Installment Agreement (I/A) I/A fee has not been paid and payment amount is equal to or more than I/A fee Apply payment to I/A fee and apply any additional payment to the module with the earliest CSED.
    Installment Agreement (I/A) I/A fee has not been paid and payment amount is less than I/A fee Apply payment to module with the earliest CSED.
    No installment agreement   Apply entire payment to module with the earliest CSED (unless taxpayer specifies a particular tax year).

    Note:

    Installment Agreement User Fee must be paid in full in one payment. Partial payments will cause the payment to go unpostable.

21.3.4.7.1.1  (10-01-2007)
Posting Documents

  1. Attach one of the following posting documents to each check or money order. For multiple payments see paragraph 4 below:

    • Tax return or form

    • Notice tear-off

    • "V" series payment voucher (e.g., Form 1040–V or Form 433–V)

    • IDRS Entity print (e.g., CC ENMOD, CC INOLE, with payment information added)

    • Form 1040 ES

    • Form 3244, Payment Posting Voucher - See Exhibit 21.3.4-15 Payment Posting Voucher

    • Form 809, Payment Posting Voucher - See Exhibit 21.3.4-14 Form 809 Instructions

    Note:

    Do not use Form 8879, IRS e-file Signature Authorization or Form 9962, Taxpayer Payment Envelope as payment posting vouchers.

  2. When using pre-printed documents (e.g. notice tear-off, Form 1040 ES, or "V" series voucher) the amounts on the document and remittance must match. If the amount of the payment is different from the amount shown on the document, correct the dollar amount on the document. This includes the pre-printed payment amount coded on the bottom of a notice.

  3. If you receive a notice tear-off with a non-cash payment, write the Designated Payment Code (DPC) in red ink and circle it. Place the DPC on the notice near the preprinted Transaction Code (TC) and amount of the payment.

  4. One or more payments:

    1. Use a separate Form 3244 or Form 809 for each tax form and tax period.

    2. Use only one Form 3244 or Form 809 when you receive more than one payment for the same form and period. Print legibly. See Exhibit 21.3.4-15, Form 3244 for instructions.

    Note:

    Use a separate posting document for User Fees.

  5. Stamp all posting documents, except Form 3244 and Form 809, with an official "Received with Remittance" stamp. Place the stamp on the front of the document. If your office does not have a remittance stamp, use your "Received" stamp and write "With Remittance" in ink. Remittance transmitted to Submission Processing without a date stamp or properly completed posting document will be posted as of the date the remittance is dated. This could create a late remittance and result in the issuance of Form 5919 to the employee submitting the payment.

21.3.4.7.1.2  (10-01-2007)
Transaction Codes

  1. When preparing payment posting documents other than Form 809, designate the following payments with TC 670 and the appropriate designation payment codes (DPC) and secondary transaction codes (where appropriate):

    • All assessed amounts and all accrued failure to pay (FTP) penalty and interest, except in those instances described in (2) below.

    • All federal tax deposits (FTDs) secured by a TAC employee. These FTDs are not routed through the FTD system and are, therefore, treated as subsequent payments.

    • All BMF estimated payments (ES) for the Form 1120 series of returns.

    • Payment of lien fees. If the lien fees have not yet been assessed, use TC 360 simultaneously with TC 670.

    • Payments received with substitute for return (SFR) and Form 4549, resulting from CSCO’s Tax Auditors' programs.

    • Payments received with Form 1040X use TC 670 and TC 570 as a credit hold for the amount of the payment.

  2. The following are special circumstances requiring different or additional transaction code input:

    • Payments on BMF, IMF, and civil penalty modules designated for application to interest or penalty - use TC 680 for the amount of the designated interest and TC 690 for the amount of the designated penalty.

    • Payments on BMF and IMF modules having a restricted interest indicator (TC 340 or TC 341) – use TC 680 for the amount of the accrued interest.

    • Payments on BMF and IMF modules having a restricted FTP penalty indicator (TC 270 or TC 271) – use TC 670 to post the remittance amount and TC 270 for the amount of accrued penalty.

    • Payments on IMF modules designated by the taxpayer as estimated payments (ES) – use TC 430.

    • ES payments on BMF and NMF modules for Estate Taxes ( Form 706) and Gift Taxes ( Form 709) – use TC 660.

    • Payments on NMF modules designated for application to interest or penalty- use TC 680 for the amount of designated interest and TC 270 for any unassessed amounts of FTP penalty included in the payment.

    • Payments on NMF modules for accrued interest – use TC 670 to post the remittance amount and TC 340 for the amount of accrued interest.

    • Payments on NMF modules for accrued FTP penalty – use TC 670 to post the remittance amount and TC 270 for the amount of accrued FTP penalty.

    • Full payment on NMF modules – request input of command code STAUP 12, using a separate input document from the one used to input transaction codes.

    • A remittance received before the posting of TC 671, Subsequent Payment Check Dishonored (prior to Balance Due issuance), must be input with a primary TC 670 and secondary TC 570, Additional Liability Pending, to ensure that the credit will not be returned as an overpayment.

    • Pre-assessed payments secured require establishment of a name line and input of TC 640, Advance payment of Determined Deficiency, if no balance due modules are already established.

    • TC 570, Additional Liability Pending or Credit, hold is not required when posting a TC 640 Advance Payment of Determined Deficiency.

    • If a NMF payment exceeds the total of assessed tax, interest, and penalty for all periods, apply the excess to the earliest period, using TC 670.

    • Use TC 694 when posting Installment Agreement User Fees.

    • Use MFT 13 (BMF) or 55 (IMF) when preparing posting documents for installment agreement fees.

    • Use Tax period 12 (BMF) or 01 (IMF) when posting installment agreement fees.

    Example:

    IMF payment of $150 received – posting document prepared for MFT 55, Tax period 200701, TC 694 ($105) and posting document for MFT 30, tax period 200312, TC 670 ($45)

    Example:

    BMF payment of $5,000 received – posting document prepared for MFT 13, Tax period 200712, TC 694 ($105) and posting document for MFT 10, tax period 200312, TC 670 ($4,895)

    Note:

    See IRM 21.3.4.7.1.3 for detail Designated Payment Codes (DPC 50 Origination User Fee or DPC 51 Restructured User Fee).

21.3.4.7.1.3  (10-01-2007)
Designated Payment Codes

  1. Designated Payment Codes (DPCs) are two digit codes which serve a three-fold purpose. Use of DPCs on all posting vouchers is now mandatory with Transaction Codes 640, 670, 680, 690, 694 and 700. DPCs are used to:

    1. Facilitate identification of payments which are designated to trust fund or non trust fund employment taxes. In such cases, they are input with payments to Form 941 (MFT 01), Form 720 (MFT 03), Form CT-1 (MFT 09), Form 943 (MFT 11) and Form 1042 ( MFT 12).

    2. Indicate application of payments to a specific liability when the civil penalty contains both a Trust Fund Recovery penalty and any other type of civil penalty. In these cases, they are input to MFT 55 only.

    3. Identify the event which resulted in a payment. This is done at the time that a payment is processed and may be used with any MFT to which the payment transaction will post. Data from this type of input is accumulated on a national basis to determine the revenue effectiveness of specific collection activities.

  2. DPCs and their definitions are below or in Document 6209:

    00 Designated Payment Code not present on posting voucher. Used only for terminal input when DPC is not present. Not to be used on posting voucher.
    01 Non-trust fund
    02 Trust Fund
    03 Undesignated bankruptcy payment
    04 Levy on state income tax refund
    05 Notice of Levy
    06 Seizure and sale
    07 Federal Tax Lien
    08 Suit
    09 Offer in Compromise
    10 Manually monitored installment agreement
    11 Bankruptcy, designated to trust fund
    12 Cash bond credit (allowed with TC 640 only)
    13 Payment in response to reminder notice for Form 1040 TY 199312 and subsequent - expires 1/1/1998
    14 Authorization given by taxpayers to apply payment to expired CSED account
    15 Payments caused by a Notice of Levy but not a payment from the 3rd party complying with the Notice of Levy
    16 Federal EFT levy payment
    17 Federal EFT payroll deduction
    18 FPLP payment. Reversal (TC 672) is systemically generated only by FMS after federal payment agency source initiates non-entitlement claim.
    19 FPLP Secondary TIN payment
    20 State Income Tax Levy Program (SITLP) receipt (used exclusively for systemically applied payments).
    21 State Income Tax Levy Program (SITLP) receipt (used exclusively for manually applied payments).
    22 Alaska Permanent Fund Dividend Levy Program (AKPFD) receipt (used exclusively for systemically applied payments).
    23 Alaska Permanent Fund Dividend Levy Program (AKPFD) receipt (used exclusively for manually applied payments).
    24 Payment with Amended Return
    49 Direct Debit Installment Agreement (DDIA) User Fee, new
    50 Installment Agreement Origination User Fee
    51 Installment Agreement Restructured User Fee
    54 Private Debt Collection Payment
    99 Miscellaneous

  3. DPCs 03 through 14 and 99 are used to identify the event which was primarily responsible for the payment being made.

  4. If a payment to a trust fund tax liability is not being designated or if the event which resulted in a payment does not fall into one of the categories represented by DPCs 03 through 11, DPC 99 must be indicated on the posting voucher to indicate that it is a miscellaneous payment.

21.3.4.7.2  (04-01-2007)
Cash Payments

  1. The IRS must accept cash payments from taxpayers who do not have a check or money order, are unable to obtain one, or who insist on paying in cash.

  2. If a customer chooses to pay by cash, offices will have a system in place to ensure that the customer receives a Form 809, Receipt for Payment of Taxes. Only exact change will be accepted from the customer, as TAC employees may not make change.

  3. Unless a deviation has been granted by the Director, Field Assistance there will be at least one employee in each TAC that is issued a Form 809 Receipt Book. Deviations may be requested by memorandum from the Area Director to the Director, Field Assistance for TACs with less than 3 employees or staffed by circuit riders. If employees issued 809 receipt books are not available, customers paying by cash will be asked to convert cash to either a check or money order.

  4. Employees issued 809 receipt books will not be given IDRS sensitive command codes. 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 should be monitored by management officials.

21.3.4.7.2.1  (10-01-2007)
Procedures for Accepting Cash Payments

  1. General procedures for accepting cash payments are:

    1. Ensure that the taxpayer has the exact amount of the payment. DO NOT MAKE CHANGE.

    2. Count the cash carefully in the taxpayer's presence to ensure agreement on the amount of the payment.

      Note:

      Prudent practice dictates that you should not take possession of the cash and leave the taxpayer’s presence without issuing the Form 809 receipt.

    3. Complete Form 809 as directed in Exhibit 21.3.4-14 ( See Exhibit 21.3.4-14) Form 809 instructions.

    4. TAC employees authorized the use of pseudonyms must sign Form 809 using the pseudonym in the signature.

    5. Give Part 2 of Form 809 to the taxpayer. If an unauthorized third party makes the payment, and Form 809 discloses new information to the third party, then mail Part 2 of Form 809 to the taxpayer's address of record.

    6. Secure cash payments and receipts in a locked metal security container, immediately. All cash received by employees that is not converted the day of receipt must be stored in the safe overnight.

    7. Convert cash to a bank draft or money order by close of business on the day it was received, or as soon as possible on the next business day.

    8. Send Parts 1 and 3 to the appropriate Submission Processing Center each day with the converted cash (bank check or money order) and Form 795, Daily Report of Collection Activity.

    9. Cash payments received with any tax return will be sent with Form 795 and the tax return to the SPC that issued the Form 809 book. This includes W-7 packages, 1040 series, 1040NR, 2290, 94X series, 706, 709, 1120, etc. The SPC will post the payment and forward the tax returns for processing.

      Note:

      When completing Form 809 for a primary taxpayer who is applying for an ITIN, write "applied for" in the box where the TIN should be entered.

    10. Keep Part 4 of Form 809 with your receipt book.

    11. Secure your Form 809 receipt book in a locked container when not in use, in accordance with IRM 1.16.15-1, and IRM 1.16.15-2 (This IRM is not available on SERP, it is only accessible through "IRM in PDF Format" .

21.3.4.7.2.2  (10-01-2007)
Completing Form 809

  1. Complete Form 809 as directed in Exhibit 21.3.4-14. ( See Exhibit 21.3.4-14)

    • Print legibly

    • Enter date received in MMDDYYYY format

    • Ensure the form has no erasures, alterations, or markovers in any critical field (name of taxpayer, TIN, money amounts, date Form 809 is issued, and employee signature)

    • No math errors or other preparation errors

    • The form must have a correct and unaltered signature of the employee to whom the book was issued

    • Enter appropriate transaction code

    • Only one tax period listed or user fee

    • Enter the taxpayer's complete address

  2. To correct a non-critical entry, (e.g., name control, DPC, MFT) line through the error and enter the correct information. The preparer must initial all corrections. See IRM Exhibit 3.8.45-108Preparation of Form 809 and Definition of Critical and Non-Critical Fields.

  3. Critical Errors are errors associated with waste, fraud, abuse and embezzlement and require the signature and acknowledgement of the field office manager. Some may require an item be returned with the response, (i.e. if part 3 of Form 809 is missing). Critical errors include:

    • Alterations, markovers or erasures in critical fields

    • The name of the taxpayer

    • The taxpayer identification number

    • All money amounts (error in dollar amount)

    • The date Form 809 is issued

    • Employee signature

    • Untimely (late) remittance

    • Form 809 issued out of sequence

    • Late cash conversion or missing cash conversion information

    • Manufacturer defects on Form 809

    • Multiple periods for posting

    • Wrong or missing parts of Form 809 receipts

    • Part 3 Memo copy not enclosed with remittance

    • Missing remittance

  4. If an error is made to a critical item identified above, void all parts (Parts 1,2,3, and 4) by clearly marking "VOID" across the face of each part. (Make no alterations, erasures, or mark over to correct errors made in preparing a receipt. However, code and edit markings needed to perfect the Part 1 for use as a posting document, are permissible.) After entering a brief explanation of the reason for voiding on the reverse of Part 1, attach Part 1,2, and 3 (stapled together in reverse order) to the Form 795 on the day the receipt was written. Retain Part 4 with the other 809 receipts in the Form 809 Receipt Book.

  5. If an error is discovered after part 2 has been issued to the taxpayer, prepare a new Form 809 as a replacement receipt. Write "replacement for receipt # NNNNNN-NN, issued on MMDDYYYY" , across the top of the replacement Form 809. Make every effort to recover the erroneous Part 2 from the taxpayer. See the table below:

    If Then
    Original Part 2 is recovered a. Give taxpayer Part 2 of the replacement receipt
    b. Ensure that the original receipt is voided.
    c.Submit Parts 1 and 3 of the replacement receipt for processing
    d. Submit Parts 1, 2 and 3 of the voided receipt
    Original Part 2 is not recovered a. Do not mail Part 2 of the replacement receipt to the taxpayer
    b. Ensure that the original receipt (Parts 1, 3 and 4) is voided
    c. Submit Part 2 of the replacement receipt with Parts 1 and 3 of the voided receipt
    d. On the reverse of Part 1 of the replacement receipt write the reason the erroneous Part 2 could not be recovered from the taxpayer and why the receipt is being voided

    Note:

    Follow these same procedures when Form 5919 is requesting replacement Form 809.

  6. The replacement Form 809 must be issued by the employee that originally issued the erroneous Form 809. If the original employee is no longer in the group (e.g. separated, transferred) the TAC Group Manager must identify the employee to issue the replacement Form 809. If the employee is still in the TAC group, but no longer assigned a Form 809 book the TAC Group Manager must request another book for the employee to re-issue the replacement Form 809. The replacement information must appear at the top of the reissued Form 809.

  7. The remittance processor checks Form 809 receipts as they are received to ensure that:

    1. Receipts are submitted promptly after issuance.

    2. Errors to non-critical items have been properly corrected and initialed.

    3. Critical items are free of alterations, erasures, or markovers.

    4. Cash payments are converted timely.

21.3.4.7.2.3  (04-01-2007)
Converting Cash Payments

  1. Convert cash to a bank draft or money order by close of business on the day it was received, or as soon as possible on the next business day

    • Make bank drafts and money orders payable to "United States Treasury" and annotate the taxpayer’s name and address.

      Exception:

      If the payment is for multiple taxpayers, enter your SEID and Form 809 receipt numbers.

    • Record the name of the issuing bank or money order company, the serial number of the check or money order, and the date (MMDDYYYY) of conversion in the block provided on Part 3 of Form 809.

    • Be sure the conversion information appears on Parts 3 & 4 of Form 809.

    • Use the Travel Reimbursement and Accounting System (TRAS) to apply for reimbursement `of cash conversion expenses.

    Note:

    The post office and financial institutions are required to report certain currency transactions. These reporting requirements are mandated by the Bank Secrecy Act {BSA} and other subsequent legislation {USA Patriot Act} that is aimed at thwarting money-laundering activities and identifying potential criminal activity. Our cash conversion transactions are not exempt from the reporting requirements that have been imposed upon the post office, banks and other money services businesses. The Service, however, maintains that employees should not be required to provide personal information when they are converting cash for official business.

  2. Financial institutions co-located or in close proximity of TAC offices should be considered for cash conversions which would not require the TAC employee to travel. Employees who leave their post of duty when converting large amounts of cash can travel in pairs. The accompanying employee could be another Field Assistance (FA) or other IRS employee.

  3. Management must always be informed when large cash payments are received, when the employee leaves the post of duty to convert cash payments, and the name of the accompanying employee. If a manager is on site, the manager should consider traveling with the responsible party to make the conversion. When feasible, Management could make arrangements with the Federal Protective Services, CI, or local guard services for escort service.

  4. If the bank asks the employee to complete a Currency Transaction Report when cash is being converted, point out that Treasury Regulations [31 CFR103.22(d)(2)(iii)] states that a bank may exempt from reporting, "exchanges of currency or other payments and transfers "by" the United States or any of its agencies or instrumentalities" . However, if a bank will not allow an exemption, a management official will contact the bank operations manager and request a blanket exception for all employees that identify themselves by presenting their photo ID. If the bank still does not accept this, arrangements will be made to use another bank for cash conversions and Field Assistance Headquarters will be notified of this. Management will then determine whether to pursue the matter with the headquarters of the bank, which is refusing to allow the exemption. If required to complete the CTR because there is no other available depository, Field Assistance employees are authorized to use the consolidated IRS EIN. The EIN should be secured from the TAC Group Manager, FA Headquarter Analyst for remittance, or LEM 5.1.2.

    Note:

    Management should pursue relationships with financial institutions and post offices to clarify acceptable IRS employee identification and issues relating to currency and banking transaction reporting requirements.

  5. When converting cash at Post Offices, an employee may be requested to provide USPS Form 8105-A, Funds Transaction Report and show their IRS photo ID badge. The following should be used when completing the Form 8105-A at the post office for cash conversions:

    • For NAME – Use Internal Revenue Service

    • For ADDRESS – Use the address of the local IRS office (TAC office)

    • For SSN – Use the IRS Tax Identification Number (TIN) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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