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Part 21. Customer Account Services

Chapter 4. Refund Inquiries

Section 3. Returned Refunds/Releases

21.4.3  Returned Refunds/Releases

21.4.3.1  (10-01-2005)
Returned Refunds/Releases Overview

  1. Always adhere to the timeframe listed in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Criteria Dates, to ensure all time frames are met when resolving cases. The following time frames are listed within that specific Internal Revenue Manual (IRM).

    • Undelivered and Expired Refund Checks

    • Deleted/Returned Refund Checks and Recertification Credits

    • Non-receipt, Lost, Stolen, or Destroyed Refunds

    • Taxpayer Initiated Refund Inquiries

  2. Refund checks issued to taxpayers may be returned to the IRS or Regional Financial Center (RFC) for many reasons. This section of the IRM provides information and instructions for processing returned refund checks.

    Caution:

    Before discussing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See IRM 21.1.3.2, General Disclosure Guidelines. Before leaving any message on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.10, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

21.4.3.2  (10-01-2005)
What is a Returned Refund/Refund Release?

  1. Refund checks are returned for several reasons. Some of the most common are:

    • Incorrect address, U. S. Postal Service was unable to deliver check.

    • The taxpayer is not entitled to a refund.

    • The credit that created the refund belongs on another module.

    • The check is issued in the wrong name.

    • The check cannot be negotiated (joint/deceased taxpayer).

  2. The Receipt and Control (R&C) function within a Campus receives the returned refund checks and directs them to the Campus Refund Inquiry Unit.

  3. Returned refund checks must be stamped or written "non-negotiable" on the front of the check and have the word "void" stamped or written on the back of the check.

21.4.3.3  (10-01-2005)
Returned Checks Research

  1. Returned refund checks must be worked by campuses in the appropriate Business Operating Division (BOD). Individual Master File (IMF) returned checks will be worked at IMF campuses and Business Master File (BMF) will be worked at BMF campuses. Send misrouted cases to the appropriate campus.

  2. Taxpayer Identification Numbers (TIN) are no longer printed on refund checks. If a refund check is received without a TIN, research Command Code (CC)IMFOLC or BMFOLC using the check number and symbol located on the check in the upper right hand corner. IMFOLC/BMFOLC will search for the matching tax module and return the appropriate IMFOLT/BMFOLT screen. Since IMFOL/BMFOL will only attempt to access the valid TIN, be sure to compare the check with the tax module to ensure you have the correct module. See IRM 2.3.51, Command Code IMFOL for complete command code instructions.

21.4.3.4  (10-04-2006)
Form 3913, Acknowledgment of Returned Check

  1. Upon receipt of a returned refund check, Refund Inquiry employees will use the automated 3913 Returned Refund program to:

    1. Control case on Integrated Data Retrieval System (IDRS), Status B, Category 3913

    2. Prepare and mail Form 3913, Acknowledgement of Returned Check, to the taxpayer, unless a completed form is received with the case from an IRS walk-in office. Form 3913 will serve as an acknowledgement letter. No interim letter is required, unless the 60-day timeframe indicated on Form 3913 cannot be met.

    3. Send voided checks less than one year old to the Philadelphia Regional Financial Center (RFC) on Form 3210, Document Transmittal, for cancellation. Form 3210 is generated by the automated 3913 Returned Refund program.

      Note:

      When a check is received at a walk-in office, the employee will complete Form 3913 with all applicable information and send the voided check and Form 3913 to the appropriate Refund Inquiry Unit.

    4. Maintain a copy of Form 3913 with the case.

      Note:

      If the automated system is down due to technical difficulty for more than one day, manually control the case on Integrated Data Retrieval System (IDRS). Complete Form 3913 and Form 3210. Send to RFC.

21.4.3.4.1  (10-01-2007)
Checks Returned to Regional Financial Center (RFC) by the Taxpayer or U.S. Postal Service

  1. Sometimes taxpayers return refund checks directly to the RFC instead of sending them to the campus.

  2. If the check has not expired, the Accounting Function receives SF1098, Schedule of Cancelled Checks, from the RFC. The Accounting Function will forward the list to the Refund Inquiry Unit at their campus.

  3. Correspondence received from the taxpayer will be sent with the 1098 list.

  4. Undelivered checks are identified on the 1098 list as "Code 2" . Checks returned to RFC by the taxpayer are identified as "Code 3" .

  5. Transaction Code (TC) 841, blocking series and serial number "99999" , on the module, identifies checks returned by the taxpayer. Below are some examples of instances when a taxpayer will return a check and steps that should be taken:

    If taxpayer returns check Then
    Without cashing the check Make appropriate adjustment to the account if necessary, and issue correct refund.
    Requesting the refund be applied to a different module and the refund was not the result of a misapplied payment, was not due to IRS error or credit elect was not indicated on the return Apply the refund to the module indicated. See IRM 21.4.3.4.5(4) Note for procedures on applying the refund.
    Because check is
    "non-negotiable" , through no fault of the IRS.     		Reissue refund with no additional interest.

  6. TC 740, blocking series and serial number "99999" , identifies checks returned by the U.S. Postal Service.

    Note:

    The credit for "Code 2" and "Code 3" cases will post in approximately two to three weeks from the date the check was received by the RFC. In many instances the credit is usually posted by the time the case is received.

  7. When the RFC receives a refund check for cancellation, they send the following to the Refund Inquiry function:

    • Correspondence from the taxpayer

    • Envelopes from the postal service

  8. The RFC or U. S. Postal Service will annotate on correspondence:

    • Taxpayer Identification Number (TIN) or check and symbol number, if no TIN is on the check.

    • Taxpayer is deceased (if applicable).

    • Taxpayer moved and left no forwarding address.

  9. The Refund Inquiry function will:

    1. Control case on Integrated Data Retrieval System (IDRS)

    2. Acknowledge the correspondence, send Form 3913, Acknowledgment of Returned Check, if the taxpayer returned the check.

    3. Resolve P- or S- freeze condition.

    4. Input "STAUP" or TC 470 on balance-due modules if TC 841/TC 740 has not posted back to the account.

21.4.3.4.2  (10-01-2005)
Recertified or Original Returned Refund Checks

  1. A recertified check is any check reissued to the taxpayer to replace an original check. If a check was cancelled, the account will show a credit for the refund, Transaction Code (TC) 841 or TC 740. A refund may be cancelled for any of the following reasons:

    • Undelivered refund

    • Limited Payability

    • Result of a refund claim (Command Code (CC) CHKCL)

    • Refund intercept (CC NOREF)

    • Refund returned by the taxpayer

    Note:

    When a refund check is cancelled, there is no "stop payment" placed on the check. The original check appears negotiable and is often cashed. If a check is cashed after being cancelled a debit TC 843, Payment Over Cancellation (POC) will post to the account. POCs are handled by the Accounting Function.

  2. When the taxpayer returns either the original, recertified, or both checks, use the following procedures:

    If the check is And it Then
    The original check Has not expired 1. Prepare and attach Form 3210, Document Transmittal, with notation "Previous Cancellation" .
    2. Send check to Regional Financial Center (RFC).
    3. Send Form 3913, Acknowledgment of Returned Refund Check, to the taxpayer.
    4. Respond to taxpayer, if necessary.
    5. Close control base "PREVCANC" .

    Note:

    No TC 841 will post due to prior cancellation.
    Has expired 1. Send Form 3913 to taxpayer.
    2. Respond to taxpayer if necessary.

    Note:

    Do not return check to RFC.


    3. Close control base and destroy the check.

    Note:

    No TC 740 will post due to prior cancellation.
    The original check Previous CC CHKCL initiated 1. Account shows replacement issued, close 3913 base
    "PREVCHKCL" .
    2. Destroy original check.
    The recertified check Has not expired, nor has the taxpayer cashed the original refund check. 1. Send to RFC for cancellation.
    2. Send taxpayer Form 3913.
    3. Update control base "841TOPOST."
    4. Monitor until TC 841 posts.
    5. Follow instructions provided by taxpayer and advise taxpayer of the action taken, if applicable.
    6. If control base does not update within 45 days to "841P" take follow-up action to locate and apply the credit correctly.
    Has expired, but the taxpayer has not cashed the original refund check. 1. Do not return check to the RFC.
    2. Prepare and mail Form 3913 to the taxpayer and follow expired return refund check procedures. See IRM 21.4.3.4.6, Resolving Returned Expired Refunds Limited Payability.
    The recertified check. Has not expired and taxpayer has cashed the original refund check. 1. Send to RFC for cancellation.
    2. Update control base or history
    "CASHEDORIG" .
    3. Monitor for TC 841
    4. Close base with input of TC 290 .00, Hold Code 2 to set a -K freeze and hold the credit. (TC 843, POC, will post from Financial Management Service).

21.4.3.4.3  (10-01-2007)
Undeliverable Refund Checks

  1. If the U.S. Postal Service cannot deliver the refund check to the taxpayer's address they will return the check to the Financial Management Service's Regional Financial Center.

  2. The Regional Financial Center (RFC) cancels undelivered refund checks weekly and transmits to Martinsburg Computer Center (MCC) for posting of Transaction Code (TC) 740 to credit the appropriate taxpayer's account. If a Treasury Offset Program (TOP) offset was made on the original refund, TOP will generate a TC 899 code 1 to reverse it.

  3. An "S-" Freeze occurs when:

    1. An undelivered refund less than one year old is returned by the postal service (TC 740 Blocking Series 99999).

      Note:

      Refund checks not cashed within 12 months of issue date are considered expired checks and are identified by a TC 740 Blocking Series 66666. See IRM 21.4.3.4.6, Resolving Returned Expired Refunds Limited Payablity.

    2. A return is filed without an address and a "Campus Address" is assigned. For campus address cases, see IRM 21.4.1.3.5, Return Processed, but No Address on File.

      Note:

      If the returned refund involves an Advance Child Tax Credit refund, refer to IRM 21.6.3.4.1.36.5.6, Undelivered ACTC Checks.

  4. Any of the following will release an "S-" Freeze.

    1. The filing of a subsequent return (TC 150).

    2. Command Code (CC) "CHK64" to generate a TC 018 on ENMOD.

    3. Systemic module update with TC 013 Business Master File (BMF) or TC 014 Individual Master File (IMF) updating from the Postal Service Change of Address (NCOA) database.

    4. A taxpayer initiated address change through Internet Refund Fact of Filing (IRFOF) will post as a TC 014 (IMF only) with a source code of 1.

      Note:

      Systemic releases will not occur if a name change has occurred since the return was filed. The NCOA and IRS records must match exactly.

    5. Input of TC 014 on IMF and TC 013 or TC 014 on BMF after posting of the TC 740.

      Reminder:

      Refund will not release if the TC 846 and TC 740 are for different amounts.

    6. Module balance becomes zero or debit.


  5. Customer Service Representatives (CSRs) and Refund Inquiry Unit Examiners will input CC "CHK64" (TC 018) to change the address.

    Note:

    Taxpayer should receive a CP 564 , Refund Check Not Delivered - New Check To Be Issued, when applicable. Therefore, do not use CC INCHG to update the address use CC CHK64.

    1. TXMOD must precede CC "CHK64" . (It cannot be input on a dummy module.)

    2. If there are multiple "S-" Freezes, CC "CHK64" input on any account with an "S-" Freeze will release all "S-" freezes.

    3. Request must be from an authorized party. On a joint return this would be either spouse (both signatures are required to negotiate the check). When updating our records through oral statement, advise taxpayer to change their address at their local post office.

      Note:

      If the secondary taxpayer on a joint account indicates an address change, determine if the change applies to the joint account or only the spouse. If the change applies only to the secondary taxpayer, make no change to the primary taxpayer's address. Advise requestor the primary taxpayer must contact us or submit a Form 8822, Change of Address. See IRM 3.13.5.11.1, Oral Address Procedures for Establishing a New Address.

    4. CC "CHK64" can be input based on oral statement.

    5. Certain situations will require the Form 5511 to be stopped (e.g., if the credit will not refund due to an offset).

  6. Do NOT input a CC "CHK64" under the following conditions (reissue refund as a manual refund):

    1. Original refund was a TC 840 and circumstances still exists where the taxpayer requires a manual refund.

    2. Original refund was a TC 846 with a Bypass Indicator (Injured Spouse).

    3. Deceased taxpayer and no CCC L or W on TXMOD or RTVUE for applicable period. See IRM 21.6.6.4.18.2, Processing Decedent Account Refunds, for more information on decedent account refunds.

  7. Use the chart below to release an S- Freeze:

    If And Then
    An unauthorized person requests the release.   You must request authorization from the taxpayer or taxpayer's authorized representative. Do not disclose any information.
    An authorized person requests release. The refund is a TC 840 (manual refund) and returned undeliverable. Determine if the refund must be re-input as a manual refund. If a manual refund is not necessary, input CHK64.
    Pending TC 018 or TC 014 on"ENMOD" . 1. Verify address.
    2. Advise requestor a refund check is being reissued.
    Pending TC 018 or TC 014 on"ENMOD" , address is incorrect. 1. Stop refund"CC NOREF" .
    2. Update address "ENREQ" , "INCHG" .
    3. Advise requestor of refund issue date (6 to 8 weeks).
    4. Release P- freeze when TC 841 posts.
    1. "S-" Freeze after CC "CHKCL" action .
    2. No open control.
    3. No Pending TC 018 or TC 014.     		Input "CC CHK64" .
    "S-" Freeze after the CC"CHKCL" action and has an open control. Refund Inquiry will contact area with open control for release of the refund.
    CSRs will forward Form 4442, Inquiry Referral, with the new address, to the area with an open control and advise taxpayer they will receive their refund in 4 to 6 weeks.
    1. Multiple freeze conditions
    2. No open control    		 Follow instructions for each freeze condition. See IRM 21.5.6, Freeze Codes.
    1. Multiple Freeze conditions
    2. Open control    		 Contact employee/area with control and coordinate resolution of conditions. See IRM 21.5.6, Freeze Codes. CSRs will forward Form 4442 with the new address, to the area with an open control and advise taxpayer they will hear from IRS in 30 days.
    Exempt Organization sub-module on BMF CP 231, Taxpayer Inquiry, Undelivered Refund Check.   "CC CHK64" will unpost, a manual refund is required.
    Invalid Taxpayer Identification Number (TIN) shown on "ENMOD/ TXMOD"   Research invalid condition and input "CC CHK64" , to release "S-" freeze, if appropriate.
    45-day interest-free period is in jeopardy. Interest free period expires 06/01 on IMF refund returns filed by 04/15. Delay due to IRS error. 1. Allow interest
    2. Overlay interest indicator "N" on CC "CHK64" with "Y."
    45-day, interest-free period is in jeopardy. Interest free period expires 06/01 on IMF refund returns filed by 04/15. Delay not due to IRS error Do not allow interest. Note: Leave the interest indicator as"N" on CC "CHK64" .

  8. Additional research may be required to determine the type of refund to send to the taxpayer. If there appears to be a need for further research on the account, take appropriate action. This may include contacting other IRS functions or more communication with the taxpayer, see Letter 533C, Refund Check Undelivered or Not Negotiated.

  9. If ENMOD shows an address update after the date of the refund (TC 846 date) use CC CHK64 to release the "S-" Freeze.

  10. Take appropriate action on Computer Paragraph (CP) replies.

21.4.3.4.3.1  (01-27-2006)
Undelivered Refund Notices - Computer Paragraph (CP) 31 for Individual Master File and CP 231 for Business Master File.

  1. The CP 31, Taxpayer Inquiry, Undelivered Refund Check Notice, or Letter 533C, Refund Check Undelivered or Not Negotiated, or CP 231, Taxpayer Inquiry, Undelivered Refund Check, informs the taxpayer a refund check was returned undelivered and requests a correct address. These notices will no longer be reviewed before mail out. If these notices are received in Refund Inquiry, route them to machine services for immediate mail out.

  2. Undelivered CP 31/231 notices may be destroyed without further action except when envelopes have a new address provided by the U. S. Postal Service or the current resident at the mailing address. If a new address is provided, send Letter 533C to the address furnished.

21.4.3.4.3.2  (10-01-2005)
Local Undelivered Refund Check Listing (URCL)

  1. The Undelivered Refund Check List (URCL) contains both prior and current year refund information. The Submission Processing Campuses generate the listing each year in mid summer and late fall. The URCL is sent to each Area Office after the Communications Officer reviews, sanitizes, and approves the listing for public release. It is the Executive in charge of the Area Office that makes the determination as to whether or not to release the URCL for publishing in the local newspapers.

21.4.3.4.4  (10-01-2005)
Returned Checks Procedures

  1. If the taxpayer calls or sends in a request on how to return their refund check, the Customer Service Representative (CSR) or tax examiner at the Campus Refund Inquiry Unit will advise taxpayer to write "void" in the endorsement area on the back of the check. Advise taxpayer to mail the check with a letter of explanation to the issuing campus Refund Inquiry Unit. Advise the taxpayer not to write on the front of the check.

21.4.3.4.5  (10-01-2007)
Resolving Returned Refunds (Unexpired Checks)

  1. Refund checks returned within 12 months of issue date are stamped "NOT NEGOTIABLE" , listed on a Form 3210, Document Transmittal, and sent to the Philadelphia Regional Financial Center (RFC) daily for cancellation. A copy of the check should be kept with the case. Forward the Form 3210 and documentation to:

    Financial Management Service
    Attn: Mailroom Staff
    P.O. Box 51315
    Philadelphia, PA 19115

  2. RFC will return credit for returned refund checks via Form SF1098 and will post a Transaction Code (TC) 841 to the taxpayer's account in approximately four to six weeks after the check is forwarded to RFC. If there was a Treasury Offset Program (TOP) TC 898 on the original refund, TOP will generate a TC 899 to reverse it. RFC will return credits for Non Master File (NMF), Individual Retirement Account File (IRAF) and photocopy fee refunds manually on SF1098.

    Note:

    Returned refund checks are sent to the RFC in Philadelphia for cancellation only if they are received on or before the last business day of the 12th month after the issue date. Checks not meeting this criterion have expired and will remain with the case. See IRM 21.4.3.4.6, Resolving Returned Expired Refund Limited Payability for procedures on expired checks.

  3. Take the following action when you receive a Form 3210, Document Transmittal and/or a returned refund check.

    If the returned check is Then
    Received in a Territory Office or walk-in office. 1. Write "Void" on back of check.
    2. Complete the Form 3913, Acknowledgment of Returned Refund Check and provide the taxpayer with a copy.
    3. Complete the Form 3210, Document Transmittal.
    4. Send the check, Form 3210, and Form 3913, to the Refund Inquiry Unit at your campus.
    Received by a campus. 1. Acknowledge receipt of form.
    2. Keep expired returned refund check per note above in paragraph 2.
    3. Send unexpired checks directly to Philadelphia Regional Financial Center for cancellation.
    4. Prepare and mail Form 3913 for refund checks received.

  4. To research and resolve returned refund checks that include an explanation from the taxpayer, refer to the chart below. Follow the taxpayer's instructions whenever possible.

    If And Then
    Credit is to be applied to a balance due. Credit not posted. Input "CC STAUP" or TC 470 to prevent offset and monitor for credit.
    No balance due. Notify taxpayer of status.
    Credit has posted.   Follow taxpayer's instructions.
    Credit intended as payment for taxes. Credit not posted. Monitor for credit, when posted, follow taxpayer's instructions.
    Refund returned on a deceased taxpayer's account, refer to IRM 21.6.6.4.18, Decedent Accounts. Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, or required documentation attached. Follow instructions and comply with request.
    Form 1310 or required documentation not attached. Send Form 1310 to estate of deceased taxpayer requesting documentation. If the surviving spouse of a joint return is claiming the refund, Form 1310 is not required.
    An erroneous name or designation of payee. Not negotiable. Request original document to verify payee, if necessary.
    An original Amended U.S. Individual Income Tax Return received with the check.   Adjust account or route return to the appropriate function. When TC 841 posts, close 3913 base
    "XXXXX2POST" if the amended return was routed.
    Adjustment action posts before TC 841. Credit and
    "P-" Freeze remaining on account.     		Refer to IRM 21.5.6, Freeze Codes, to determine if the
    "P-" Freeze can be released.
    Refund was correct when issued. Returned in error. Provide explanation to taxpayer. Do not allow additional interest if the refund is to be reissued or applied to an outstanding liability.

    Note:

    If the original refund was a manual refund, you may need to reissue it as a manual refund. See IRM 21.4.4, Manual Refunds.

    Note:

    If the taxpayer request his payment be applied to another tax module and the refund was not the result of a misapplied payment, was not due to IRS error, or credit elect was not indicated on the return, debit the account using TC 820 and credit the account using TC 670. If interest was included on the refund and the taxpayer is still entitled to the interest, post the interest on the account with a TC 770. Debit the account with a TC 820 and credit the account with a TC 670. For additional information on interest, see IRM 20.1, Interest

    .

  5. If no explanation or other information is provided by the taxpayer, correspond with a Letter 407C, Refund Returned by Taxpayer; No Reason Indicated, or Letter 18C, Decedent Refund (Form 1310 Required) if a Form 1310 is needed. Suspense the case and allow 45 days for a response. If no response is received follow paragraph (11) below.

  6. When a refund check is reissued to the taxpayer or designated payee, do not allow interest if:

    • Taxpayer furnished incorrect information

    • Taxpayer moved before refund received.

    • Refund returned to be applied to any outstanding balance

    • Taxpayer error.

  7. Allow interest under the following conditions:

    • IRS error caused the refund to go to incorrect address

    • TC 841 posts after an adjustment, and "P-" Freeze is on account

    • IRS caused the incorrect refund amount or directed the refund to the wrong payee

  8. Interest allowed on a returned check cannot be applied to a year not posted. For more information, see IRM 20.2.1, General Interest.

  9. Use the following guide when inputting a TC 290 to release "P-" Freeze as a refund to the taxpayer. Refer to IRM 21.5.6, Freeze Codes.

    Individual Master File (IMF).
    No Interest     		IMF
    Same Interest     		IMF
    Additional Interest
    Business Master File (BMF)
    No Interest     		BMF
    Same Interest     		BMF
    Additional Interest.
    1. TC 290 for .00
    2. TC 770 for .00
    3. Hold Code "3"
    4. Reason Code "099"     		1. TC 290 for 00
    TC 770 for .00 or (amount of original interest)
    2. Hold Code "3"
    3. Reason Code "099" .
    4. On TC 770 for the amount of original interest use the CR-INT-TO-DT of the original TC 766/770.     		TC 290 for .00.
    1. TC 290 .00
    2. TC 770 for .00
    3. Hold Code "3"     		1. TC 290 .00
    2. TC 770 .00 (amount of original interest)
    3. Hold Code "3" .
    4. On TC 770 for the amount of original interest use the CR-INT-TO-DT of the original TC 776/770.     		TC 290 .00.

    Note:

    TC 770 for .00 not required for current year returns if the refund will be issued prior to June 1.


  10. Depending on the age of the credit, transfer the payment or credit to the Unidentified Remittance or Excess Collections accounts if:

    1. The credit cannot be released through research or correspondence with the taxpayer.

    2. The taxpayer has not responded to our correspondence (original or follow-up).

      Reminder:

      Do not use Form 3913, Acknowledgment of Returned Refund Check, as a request for information.

  11. If unable to release the credit, transfer the credit as follows:

    1. If the credit is less than one year old, apply to the Unidentified Remittance account using Form 2424, Account Adjustment Voucher.

    2. If the credit is more than one year old, apply to the Excess Collections account using Form 8758, Excess Collections File Addition. Refer to IRM 3.17.220, Excess Collections File, for specific information about the Excess Collections Account 6800 and IRM 21.5.8.1(8), Credit Transfers Overview, for procedures on moving money into Excess Collection.

21.4.3.4.5.1  (10-01-2005)
Check for Different Amount

  1. If the taxpayer receives a refund in an amount different than expected, and the check has not expired, follow the table below to resolve.

    If And Then
    The taxpayer questions the amount. You can determine the difference through Integrated Data Retrieval System (IDRS) and original refund is correct. 1. Provide explanation to taxpayer.
    2. If refund was returned, reissue and limit interest to the amount of the original refund.
      You can determine the difference through IDRS research and refund is incorrect. 1. Advise taxpayer to write void on the back of the check and return it to the issuing campus with a letter of explanation.
    2. If the refund was returned adjust account as necessary.
      You cannot determine the difference through IDRS research. 1. Advise taxpayer to write
    "void" on the back of the check and return it to the issuing campus Refund Inquiry Unit with a letter of explanation.
    2. If refund returned, request the return and all related documents, if necessary, to resolve the case.
    3. Send an interim letter or telephone taxpayer with explanation of the delay, if necessary.
    4. Upon receipt of the documents, take appropriate action and send taxpayer a letter explaining the resolution.
    5. Adjust the account and/or reissue the refund.

21.4.3.4.5.2  (04-03-2006)
Issuing Checks in Another Name

  1. When a taxpayer requests the refund check be reissued in a name of another party, he/she must send back the voided check and provide sufficient proof:

    If And Then
    BMF refund check Correspondence stating company dissolved and sufficient documentation received. 1. Mail Form 3913, Acknowledgment of Returned Refund Check to the taxpayer.
    2. Issue manual refund to designated individual.
    Sufficient documentation is not received. 1. Send a letter requesting missing documentation.
    2. Send follow-up letter if no response within 45 days.
    No response to follow-up letter after 30 days. 1. Transfer the credit to the
    "4620" or
    "6800" account. For instructions on applying credit to these accounts, See IRM 21.4.3.4.5, Resolving Returned Refunds (Unexpired Checks). For procedures on moving credits to the 4620 account see IRM 21.5.8.1(8), Credit Transfers Overview.
    2. File and close case using TC 290 .00.
    IMF refund check Payee signed statement that check is not from joint account, or has letter or court certification showing conservatorship or guardianship, etc. 1. Mail Form 3913, to the taxpayer.
    2. Correct entity information, if applicable.
    3. Release refund or follow manual refund procedures to issue refund to designated individual.
    Insufficient documentation. 1. Send Letter 1219C, Refund Inquiry; (Joint F3911) Requires Certification Form 1040, requesting missing documentation.
    2. Send follow-up letter after 45 days.
    No response to follow-up letter after 30 days. 1. Transfer the credit to the "4620" or "6800" account. For instructions on applying credit to these accounts, See IRM 21.4.3.4.5., Resolving Returned Refunds (Unexpired Checks). For procedures on moving credits to the 4620 account see IRM 21.5.8.1(8), Credit Transfers Overview.
    2. Close control.
    3. File case using TC 290 .00.

21.4.3.4.5.2.1  (04-03-2006)
Joint Filers Request Refund Check in One Name

  1. If a taxpayer filed a joint return and requests the refund check be reissued in one name, advise the taxpayer to return the voided check and follow the procedures below:

    If And Then
    One spouse is overseas in connection with the military. Requester is one of the Payees. Advise requester to submit in writing:
    1. Copy of Power of Attorney (POA) issued by the military or
    2. Signed statement from other spouse consenting to issue of the refund to requester.
    One spouse is incarcerated. Requester is one of the payees. Requester must submit written permission from incarcerated spouse consenting to issue the refund to the requester.
    One spouse is missing. No legal separation. Advise taxpayer to obtain one of the following:
    1. A copy of police report of missing person or,
    2. Certification from state or local government agency that spouse cannot be found.
    3. A copy of notice printed in newspaper.
    Taxpayer is divorced Taxpayer submits a copy of the divorce decree dictating how the refund should be allocated. Follow procedures in IRM 21.4.4, Manual Refunds.
    You determine check should not be reissued in one name.   1. Reissue check in both names.
    2. Send Letter 1219C, Refund Inquiry; (Joint F3911) Requires Certification Form 1040, using appropriate paragraphs and giving reason:
    "One spouse refuses to endorse the refund check (i.e. civil matter, no divorce decree allocating the refund)" .
    Required information as noted above is missing.   Send Letter 1219C to request missing items.
    Sufficient documentation received.   Process request. See IRM 21.4.3.4.5, Resolving Returned Refunds (Unexpired Checks).
    No response to request after 45 days.   Send follow up letter.
    No response to follow up letter after 30 days.   1. Transfer the credit to the
    "4620" or
    "6800" account. See IRM 21.4.3.4.5, Resolving Returned Refunds (Unexpired Checks). For procedures on moving credits to the 4620 account see IRM 21.5.8.1(8), Credit Transfers Overview.
    2. Close control.
    3. File case using TC 290 00.

21.4.3.4.6  (10-01-2006)
Resolving Returned Expired Refunds Limited Payability

  1. Under the Limited Payability provision, checks issued October 1, 1989 or later expire the last business day of the 12th month of issue. Credit for an expired refund will post in approximately the third week of the 15th month after issuance. These credits are identified by Transaction Code (TC) 740, blocking series/serial number "66666" . Upon completion of the case, destroy the original expired refund check as classified waste. Do not send an original check to files.

  2. If the taxpayer contacts IRS and either returns or wants to return a refund check that is over 1 year old (known as a "stale dated" check) use the following chart to determine your response:

    If Then
    No S- freeze is present. 1. Check the tax module for a TC 740, with blocking series 66666, and matching posting date after the TC 846.
    2. If the TC 740 is present and another TC 846 or TC 826 is posted after the TC 740, advise the taxpayer their refund has been re-issued or offset.
    3. Advise the t