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Part 21. Customer Account Services

Chapter 5. Account Resolution

Section 7. Payment Tracers

21.5.7  Payment Tracers

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21.5.7.1  (10-01-2003)
Payment Tracer Overview

  1. This section provides information on payment tracers. Payments not applied to the proper tax module may cause erroneous notices or refunds.

  2. Taxpayers may resolve missing/misapplied payment issues through the Integrated Customer Communications Environment (ICCE), formally known as Telephone Routing Interactive System (TRIS), written correspondence, phone contact with a Customer Service Representative (CSR), Taxpayer Resolution Representative (TRR), or a Taxpayer Assistance Center (TAC) visit.

  3. All Customer Service Representatives, including Automated Collection System (ACS), Campus Collection Operations, and TAC, are responsible for researching and resolving payment tracer inquiries.

  4. This section provides procedures for:

    • locating missing payments

    • deciding who works payment tracer cases needing various levels of research

21.5.7.2  (10-01-2003)
What Is a Payment Tracer?

  1. A payment tracer is the process used to locate a missing or misapplied payment made by a taxpayer. A payment tracer case is not resolved until the missing or misapplied payment is correctly applied to taxpayer's account.

21.5.7.3  (10-01-2007)
Missing Payments Research

  1. Various research tools can help find missing payments as described below and in this section.

  2. Before disclosing any tax information:

    1. Be sure you are speaking with the taxpayer or authorized representative. See IRM 21.1.3.2, General Disclosure Guidelines, for more information.

    2. Review procedures in IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail, before leaving a message on taxpayers answering machine or voice mail.

    3. Review procedures in IRM 11.3.1.10, Facsimile Transmission of Tax Information, before faxing confidential information to the taxpayer.

  3. Before conducting research to locate the payment, determine if it has been at least 2 weeks since the taxpayer mailed their payment or 1 week since the scheduled date of an authorized electronic payment. If not, ask the taxpayer to call back at that time. Otherwise obtain the following as applicable:

    • Evidence of payment (e.g., copy of canceled check, front and back)

    • Date payment cleared

    • Taxpayer name and address

    • Taxpayer Identification Number (TIN)

    • Date of payment

    • Amount of payment

    • Tax period payment intended for

    • Means of payment submission, how it was submitted (e.g., check, money order, electronic/bank submission)

    • Where payment was sent

    • Type of payment

    • Encoding information (e.g., check or money order)

    • Electronic Federal Tax Payment System (EFTPS) 15 digit EFT number

    • Routing number for financial institution on which the check was drawn

    • Credit Card Payment, confirmation number

    Note:

    In order to alleviate taxpayer burden, every attempt should be made to resolve the missing payment through internal research, including using the Remittance Transaction Research (RTR) system, before requesting any documentation. If the taxpayer cannot provide a copy of the documentation (in person or by fax), advise the taxpayer to send a copy of the documentation to the appropriate campus that processes his payments.

    Note:

    Effective October 28, 2004, the "Check Clearing for the 21st Century Act" or "Check 21," is a federal law passed by the U. S. Government. A "substitute check" is the legal equivalent of the original check and must be processed as if it were the original pursuant to the Check Clearing for the 21st Century Act ("Check 21" ) Pub. L. No. 108–100 (10-28-2003), 12 U.S.C. § 5001-5018 effective October 28, 2004. Background: Not all banks have the equipment needed to accept electronic payment files and "Check 21" overcomes this obstacle. The truncating bank (which may be any bank in the check collection process) electronically transmits an image of the front and back (including endorsements) of the original check and the recipient bank converts the information into a new form of paper instrument, known as a "substitute check." A substitute check is the same size as the original and is designed to be processed in a bank’s sorting equipment just as though it were the original check and may be returned to the payer with the monthly bank statements. The check’s legend states "This is a legal copy of your check. You can use it the same way you would use the original check."

  4. Additional information and research may be needed. Research criteria may be different depending on the type of payment. See specific procedures.

    Note:

    Phone or fax taxpayer for information needed to resolve the case. If unable to reach taxpayer via telephone or fax (at least two attempts), use the appropriate "C letter."

  5. All functions work the initial phase of a payment tracer case. If a transferable payment is found, follow the credit transfer procedures in IRM 21.5.8, Credit Transfers.

  6. If you cannot locate the payment, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) at the campus that processed the payment, or processed the most recent payments if unable to determine who processed the missing payment.

    Exception:

    Forward payments processed at Brookhaven and Memphis to the Cincinnati HPTF and forward payments processed at Philadelphia to the Ogden HPTF.


    HPTF is usually located in the Accounting Control/Services Operation. See Exhibit 21.5.7-1. Hardcore Payment Tracer Addresses. See IRM 21.5.7.4.2., Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for referral procedures.

  7. The system used to process a payment determines the research method needed. Endorsement (encoder) information on the copy of the remittance will establish an audit trail. From the endorsement/encoder information, you can reconstruct the Document Locator Number (DLN) assigned to the remittance and/or Remittance Processing System Identification (RPSID) number of the electronic voucher batch number.

  8. Request a manual lien release (TC 582, lien indicator) in the following situations

    • The lien will not systemically release

    • The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days

    • It has been more than 30 days since the account was fully satisfied

    See IRM 5.12.3.2.1 (5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794Request for Release, Partial Release, or Withdrawal of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.

21.5.7.3.1  (04-19-2006)
Remittance Transaction Research (RTR) System

  1. The Remittance Transaction Research (RTR) system is a researchable database that contains remittance processing data and images from IRS Integrated Submission and Remittance Processing (ISRP) system and Lockbox Bank processing sites. RTR provides universal access to a consolidated database of remittance data and images generated at ISRP and Lockbox Bank Processing sites. This system permits data storage for up to 20 years. It also provides 3 years of images online for immediate retrieval. Images more than 3 years old are stored offline. These can be retrieved through an online request which is retrieved and made available by the next business day.

  2. RTR provides access to remittance processing data and images. Images include the front and back of the cancelled check or money order and voucher, if submitted with the payment. RTR facilitates and expedites efforts to reconcile taxpayer payments, balance daily deposits, and respond to customer service inquiries. RTR users can query the RTR database to access remittance transaction data and images, print reports, and review notes to transactions.

  3. Access to RTR is currently limited. Requests for access are made via the Automated 5081 system and must be approved by local management. Future system enhancements will allow additional user access and make FTD payment information available.

  4. RTR system must be researched before requesting a copy of the cancelled check or money order from the taxpayer, if both of the following apply:

    • access to the RTR system is available

    • the payment is an ISRP or Lockbox payment

  5. When performing a query (research) for records, it is critical to enter as much information as possible in order to narrow your research request. A query initiated with minimal information could have debilitating affects to the system.

  6. All Lockbox sites were online as of Dec. 31, 2003. As payment information for individual Lockbox banks became available via RTR, the RTR Availability page was updated. The Availability page can be accessed by selecting Modernization, and Remittance Transaction Research (RTR) System, under the IRM Supplements tab on the SERP Home Page. Archive information is not available. Only payments processed by the banks after installation and programming of the RTR equipment will be available.

  7. All sites that process ISRP payments came online June 30, 2004. As payment information for the individual campuses became available, the RTR Availability page was updated. Archive information will be available back to and including calendar year 1999.

  8. Notes can be accessed to view record changes or deletions made to either an individual record or a block of records prior to posting to Master File. For example, a payment goes unpostable after being sent through Lockbox. Notes should contain enough information to allow users to track the payment record to the point at which it posts to a taxpayer's account. Once posted, changes or movement of credits are tracked through Master File via IDRS.

21.5.7.3.2  (10-01-2007)
IDRS Research for Payment

  1. Search for payments on Integrated Data Retrieval System (IDRS) and Corporate Files On Line (CFOL). Refer to Document 6209, IRS Processing Codes and Information,IRM 2.3, IDRS Terminal Responses, and IRM 2.4,IDRS Terminal Input, for information on displaying and using IDRS and CFOL information.

  2. Use IDRS Command Codes NAMES/NAMEE and NAMEI/NAMEB to obtain Social Security Number (SSN) or Employer Identification Number (EIN) information.

  3. Use the following IDRS/CFOL command codes to search for a payment:

    • SUMRY and TXMOD, for possible misapplications of the payment. They provide different master file tax (MFT) codes for Individual Master File (IMF) and Business Master File (BMF) accounts.

    • MFTRA.

    • IMFOL and/or BMFOL, if there is no open TXMOD or IDRS is down.

    • INOLET and/or INOLEX, to check all related Taxpayer Identification Numbers (TINs), valid and invalid, provided by taxpayer.

    • URINQ, to research the unidentified remittance file.

    • XSINQ, to research the excess collections file.

    • ERINV, to research the Error Resolution System (ERS).

    • ESTAB, to order microfilm transcripts, images of Federal Tax Deposit (FTD) coupons, modules on retention, and to request returns, blocks of documents or other documents.

    • SCFTR, to research the Service Center Control File.

    • UPTIN, to check open and closed unpostables for a specific TIN. Closed unpostable records remain on file 90 days for display.

    • TXMOD, SUMRY, and ENMOD with definer "N" after the TIN for ANMF tax modules and entity information.

    • EFTPS, to display electronic payment information.

    Reminder:

    Document 6209, IRS Processing Codes and Information, can be used to help read the IDRS/CFOL screens.

  4. Research CFOL command codes (CC) for payments if IDRS is not available or if "No Data" on IDRS. CFOL will also show the MFT codes (e.g. MFT 31 for IMF accounts).

  5. Payments post and can be reversed on the Master File. See Exhibit 21.5.8–1, Transaction Codes and Reversals..
    A TC 976 will post with a money amount if the taxpayer submits a payment with an amended return. This credit should be treated as a payment.

21.5.7.3.3  (12-01-2006)
IDRS Research for Federal Tax Deposits (FTDs)

  1. The following four sites process FTD payments.

    FTD Processing Campus
    Austin Submission Processing Center (ASPC) Cincinnati Submission Processing Center (CSPC)
    Alabama, Arkansas, Florida, Kansas, Louisiana, Mississippi, New Mexico, Oklahoma, Texas, Bank of America (North Carolina) Delaware, District of Columbia, Georgia, Indiana, Kentucky, Maryland, New Jersey, New York City, Long Island, Ohio, Pennsylvania Virginia, West Virginia, AC International
    Kansas City Submission Processing Center (KSPC) Ogden Submission Processing Center (OSPC)
    Connecticut, Illinois, Iowa, Maine, Massachusetts, Michigan (Upper and Lower Peninsula), Minnesota, Missouri, New Hampshire, New York (State), Rhode Island, South Carolina, Tennessee, Vermont, Wisconsin Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nebraska, Nevada, North Carolina, North Dakota, Oregon, South Dakota, Utah, Washington (State), Wyoming

  2. When researching for FTD payments, check the module the payment was intended for to determine if the deposit was applied and then transferred to another module or account. Computer Condition Code (CCC) E on an employment tax return indicates the taxpayer requested to credit elect all or part of an overpayment. Missing FTD payments may be included in a credit elect amount located on a subsequent module. See section 3 of Document 6209,IRS Processing Codes and Information for additional information on CCCs

  3. A "rollover" to the FTD credit module, (indicated on IDRS by the presence of MFT 01 and the tax period 000000) occurs automatically when more credits are posted than claimed on the return. A single excess FTD may be transferred, if a return has not posted for the subsequent tax period. The reverse credit will show "R" following the transaction code, with "P" following the DLN. The gaining module will show the same microfilm serial number, with "A" following the DLN. The 9th and 10th digits of the DLN will be "99."

  4. A "rollback" happens when more credits are claimed on the return than are present in the module. If the return has not posted for the subsequent tax period, a single FTD, equaling the difference, may be transferred back to the prior module. The same identifying data ,"R" and "P" , indicate a "rollback." A rollback can occur between a Form 940 and Form 941.

  5. Research unpostables and the unidentified remittance file (URF). An unreversed transaction code (TC) 971 with action code (AC) 296 indicates a payment was moved to either the URF or excess collection file (XSF).

  6. See IRM 21.5.7.3 (3) for the first Note if you are staffing the AM toll-free lines. See IRM 21.5.7.4.7.15, Federal Tax Deposits (FTD), for additional FTD research guidance.

21.5.7.3.4  (10-03-2003)
Requesting Documents Through IDRS

  1. All functions working payment tracer cases are responsible for requesting tax returns, documents, records, blocks, registers, etc. in order to resolve the case.

  2. For payments made prior to the implementation of the Residual Remittance Processing System (RRPS) in 1999, command code ESTAB can be used to request a single document or entire block using the payment document locator number (DLN). The payment DLN can be obtained from the remittance or from IDRS/CFOL next to the payment. All campus’ implemented RRPS during 1999. The major change with the implementation of RRPS is the elimination of the DLN on the payment posting documents. If a payment posts as a TC 610, do not request the document. There will not be a payment posting voucher in Files. For more information on RRPS payment documents and requesting archived images of the payment document or checks. See IRM 21.5.7.4.7.1, ISRP/RRPS.

  3. Research the entire block for the payment document.

  4. For information on Lockbox payment documents, See IRM 21.5.7.4.7.4, Lockbox Payments.

21.5.7.3.5  (10-01-2007)
Remittance Left Attached to the Return

  1. If the taxpayer states the remittance was submitted with the tax return, has not stopped payment, and HAS NOT issued a replacement check:

    1. Prepare and fax Form 2275 to the appropriate campus files area. The Remarks field should include the following, or similar statement: "Please search through the entire document for a payment. If found, submit the payment for processing using the received date of the return. Please reply by fax or telephone if a payment was, or was not attached." Remember to include your name, telephone and fax number, DLN of the return, and payment amount. The campus fax numbers are:

      Campus Fax Number
      ANDOVER (978) 691-6984
      ATLANTA (678) 530-5335/5336
      AUSTIN (512) 460-4152/7372
      BROOKHAVEN Serviced by Cincinnati
      (859) 669-2709
      CINCINNATI (859) 669-2709
      FRESNO (559) 253-4981
      KANSAS CITY (816) 292–6109
      MEMPHIS Serviced by Cincinnati
      (859) 669–2709
      OGDEN (801) 774-2515
      PHILADELPHIA Serviced by Ogden
      (801) 774-2515


    2. Follow these procedures when you receive the response from files:

    If the remittance Then
    Is found Advise the taxpayer the remittance was found and it will be processed using the received date of the return.
    Is NOT found Advise the taxpayer the check was not found and request payment.

  2. If the taxpayer states the remittance was submitted with the tax return, has stopped payment, and HAS NOT issued a replacement check:

    1. Advise the taxpayer to submit payment with correspondence and an explanation.

    2. When correspondence is received, ESTAB for the return.

    3. Follow steps in the If/Then chart below. See IRM 21.5.7.3.5 (3).

  3. If the taxpayer states the remittance was submitted with the tax return, has or has not stopped payment and HAS issued a replacement check:

    1. Use CC ESTAB to request the original return from files. Search through the entire return and envelope for the uncashed remittance.

      Exception:

      If you are staffing the AM toll-free telephone lines, do not ESTAB for the payment. Complete Form 4442, Inquiry Referral, and route to the Campus AM paper function within your Directorate. Indicate on the form "Document must be obtained from files in order to search for the remittance" Include all information available/obtained from the taxpayer i.e., name, TIN, amount and date of payment, etc. Indicate on Form 4442 whether the taxpayer has or has not issued a replacement check and whether the taxpayer has or has not stopped payment. The Form 4442 can be used in this case ONLY because the ESTAB request is staying within the Operation (AM) and it is not a referral to another area for a payment tracer or hardcore payment tracer.

    If the remittance Then
    Is found Change the date of the subsequent payment to the date of the original payment. Write "VOID" on the check and return it to the taxpayer. Send an apology letter to the taxpayer. See IRM 21.5.7.4.4.4, Form 8546,Claim for Reimbursement of Bank Charges .
    Is NOT found A managerial decision must be made to change the date of the subsequent payment to the date of the original payment. Send an apology letter to the taxpayer. See IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges.

  4. For Electronic Filing (ELF) Returns, if the taxpayer states that the check was attached to Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing: See IRM 21.6.6.4.21(5), Electronic Filing System (e-file), for procedures to request Form 8453.

  5. Request a manual lien release (TC 582, lien indicator) in the following situations

    • The lien will not systemically release

    • The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days

    • It has been more than 30 days since the account was fully satisfied

    See IRM 5.12.3.2.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794Request for Release, Partial Release, or Withdrawal of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.

21.5.7.3.6  (10-01-2007)
Researching Unidentified Remittances and Excess Collection File

  1. Payments less than one year old which could not be applied to specific taxpayers and/or tax periods are moved to the Unidentified Remittance File (URF). Research the URF, Account 4620, using IDRS CC URINQ. Payments more than one year old which could not be applied can be researched in the Excess Collection File (XSF), Account 6800, using CC XSINQ. (See IRM 3.17.10, Revenue Receipts).

    Note:

    Beginning July 1, 2006, accounts with credits moved to the URF or XSF should show a TC 971 with Action Code 296 posted to IDRS on the module payment/credit posted to. This indicates all research of the primary and related Taxpayer Identification Numbers (TINs) was completed prior to the transfer into the URF or XSF.

  2. Research URF using CC URINQ or XSF using CC XSINQ by the:

    • Amount of remittance

    • Name control

    • DLN

  3. When payments are found in these accounts:

    1. Prepare Form 8765, IDRS Control File Credit Application. See IRM 21.5.7.4.4.2, Form 8765, IDRS Control File Credit Application, for additional information on Form 8765.

    2. Route the form and supporting evidence to the unidentified remittance/excess collection function in the Accounting Control/Services Operation at the campus that applied the funds to URF/XSF. The Campus can be identified by the first two digits of the Credit Reversal DLN

    3. Notify taxpayer the payment has been found.

    4. Release TC 470, if applicable.

      Reminder:

      Credits must be cleared by Statute function, if applicable.

21.5.7.3.7  (10-01-2007)
Researching Unpostable Payments

  1. The transactions that fail validity checks (a system of checks-and-balances applied by the computer) and can not post to master file are referred to as "unpostables" . Each unpostable is assigned a 3 digit unpostable code which identifies the reason or condition that prevented the transaction from posting. Unpostable codes will also have a 1 digit reason code. Unpostable payments appear as UPnnn on TXMOD. These cases should NOT be sent to HPTF. Research unpostable payments on IDRS using the following commands:

    • UPTIN - displays all open and closed unpostables for a specific TIN.

    • UPDIS - displays all open unpostable cases for a specific sequence number.

  2. When you locate a payment in open unpostables use CC UPCAS with Definer "Z" to input the payment information to resolve the unpostable condition. The Unpostable function will make the correction(s) based on this information.

  3. Close the case and notify the taxpayer. See IRM 21.5.5.3.3, Responding to Taxpayer Inquiries, for a time frame to provide the taxpayer.

  4. See IRM 21.5.5, Unpostables and Document 6209 , Section 8, Master File Codes, for more information on unpostables.

21.5.7.3.8  (10-01-2007)
Researching Error Resolution Conditions

  1. When documents are rejected from the normal processing because of incomplete or incorrect information, they fall out to the Error Resolution System (ERS). ERS is used to correct these documents for reinput into the system.

  2. To determine if a return/document is in ERS, access the ERS Control File using CC ERINV. Enter ERINV followed by a space and any of the following:

    • The primary TIN (no hyphens)

    • The complete 14–digit DLN (with hyphens)

    • The Block DLN with XX in place of the serial number, (with hyphens)


    Example:


    Research ERINV by TIN − ERINV XXXXXXXXX − Enter/XMIT key (no hyphens)
    Research ERINV by DLN − ERINV XXXXX-XXX-XXXXX-X − Enter/XMIT key (hyphens)

  3. ERINV provides the ERS status code. These codes identify if the item is workable, unworkable, in suspense or if the document has been referred to another area. See Exhibit 3.12.37–21, ERS Status Codes, for IMF and Exhibit 3.12.38–3, ERS Status Codes Inventory, for BMF.

  4. If you locate the missing payment after researching ERINV, close the case and notify the taxpayer.

21.5.7.3.9  (10-01-2003)
Researching Reject Registers

  1. A reject sequence number on IDRS indicates if there is a reject transaction on the taxpayer's account. The reject transaction has no effect on the IDRS balance.

  2. An alpha reject sequence code appears on IDRS:

    • C - Closed Case

    • O - Open Case

    • S.Sgt. Line Reject - Open Case

  3. Notate the reject sequence number on Form 4446 and send to the HPTF.

  4. HPTF will research the Reject Inventory Lists available in the Reject Unit. Research the lists by DLN or TIN. Use this list to locate the Reject Disposition List.

  5. The Reject Disposition List shows the disposition of the document or the new DLN:

    Reject Listing shows Then the action/status is
    Good Valid correction sent the document to good tape
    Loop Invalid correction
    Reinput DLN Designated for reinput using the original
    Re-reject Still in reject inventory
    Void Non-remittance item only
    Renumbered Documents New DLN or URF, for Unidentified Remittance File, is displayed

  6. Use the Reject Disposition List to locate the corrected reject registers retained in the Reject area.

  7. Items processed through ISRP may be researched for history through the notes feature on the ISRP Archive System.

21.5.7.4  (10-01-2007)
Resolving Missing Payments Procedures

  1. Payments are identified by Campus, Lockbox, Field Processing methods or Bank Endorsements. The different types of methods and systems used to make and record payments are:

    • Cashier’s Checks

    • Cash Payments

    • Direct Debit Installment Agreements

    • Electronic Federal Tax Payment System (EFTPS)

    • Electronic Funds Withdrawal

    • Federal Tax Deposits

    • Free Items

    • Field Office Remittances

    • Foreign Remittances

    • Integrated Submission and Remittance Processing System (ISRP)

    • Lockbox Payments

    • Justice Department Lockbox Receipts

    • Installment Agreement User Fee Lockbox Payments

    • Manual Deposits

    • Money Orders

    • Non-Master File Payments

    • Payments for Lloyds of London Taxpayer

    • Payments Made by Credit Cards

    • Remittance Transaction Research (RTR) System

    • Residual Remittance Processing System (RRPS)

    • Service Center Recognition Image Processing System (SCRIPS)

    • State Income Tax Levy Program Payments (SITLP)

    • Treasury Bonds

    • Truncated checks

  2. When a payment is received via EFTPS and taxpayer does not have the EFT number, ask the taxpayer to contact the bank’s customer service area for the EFT number.

    Note:

    In March 2004, the U.S. Department of Treasury chose Bank of America as the sole EFTPS provider.

  3. If the taxpayer indicates a payment was attached to the tax return but has not cleared the bank, See IRM 21.5.7.3.5, Remittance Left Attached to the Return.

  4. If a payment has posted to the wrong account and must be transferred, refer to IRM 21.5.8, Credit Transfers.

  5. Research all accounts completely to resolve a payment tracer inquiry. Only prepare a written referral e.g., Form 4446,Payment Tracer Research Record, or Form 4907 (TDA Assembly) after all research is complete and the payments cannot be located.

  6. Notify taxpayer when you locate the payment. See IRM 21.5.7.4.5, Letters and Notices, for instructions.

21.5.7.4.1  (10-01-2003)
Delay Notices and Offsets

  1. Any employee working a payment tracer case is responsible for delaying notices and/or refund offsets.

  2. Use CC STAUP to update an account in IDRS notice Status. This command code generates a history item and converts the module to Status 48. All balance due notices will be suppressed, except the first notice. Contact the Notice Review function if a notice must be stopped.

  3. Transaction Code 470 suspends all IDRS notices for 15 weeks. Use TC 470 if taxpayer files a claim or CC STAUP cannot be used.

  4. See IRM 21.5.1, General Adjustments, for more information.

21.5.7.4.2  (10-01-2007)
Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF)

  1. If you cannot locate the missing payment after researching on-line Integrated Data Retrieval System (IDRS) or reviewing information from the taxpayer/bank, prepare Form 4446, Payment Tracer Research Record, documenting all research and refer to HPTF at the campus that processed the payment or processed the most recent payments if unable to determine who processed the missing payment.

    Reminder:

    When completing Form 4446,Payment Tracer Research Record, you are required to enter your employee number, this is your IDRS assigned number. DO NOT ENTER YOUR IRS BADGE NUMBER.

    Note:

    Payments processed at the Brookhaven and Memphis Campus should be shipped to the Cincinnati Campus and payments processed at Philadelphia should be shipped to the Ogden Campus.

  2. When referring the case to HPTF, when appropriate send the taxpayer Letter 86C and delay notices. See IRM 21.3.3.4.2.1, Use of 86C Letter, to determine when it is necessary to notify the taxpayer of the transfer.

  3. HPTF located in Accounting Services/Control Operation, is responsible for working complex payment tracer cases after all preliminary research has been exhausted. See IRM 21.5.7.4.4.1, Form 4446, Payment Tracer Research Record, for preliminary research which includes corresponding with the taxpayer and/or obtaining source documents internally/externally, researching the Integrated Data Retrieval System (IDRS), Corporate File On Line (CFOL), non-master file, unidentified (URF) and excess (XSF) collection files, unpostables, and EFTPS. Use the telephone and fax machine to obtain additional information needed to resolve the case. This will expedite the resolution process. If unable to reach taxpayer via telephone (at least two attempts), use the appropriate "C letter" . HPTF will review Form 4446 to ensure that necessary research and documentation was prepared before accepting the payment tracer case. Any incomplete case will be returned through the unit manager with an explanation of the corrective action required.

    Reminder:

    Every type of payment does not require the same amount of documentation to be accepted by the HPTF.

  4. HPTF cases usually involve complex conditions such as:

    • Piggyback checks, encoding errors, and deposit discrepancies that cannot be resolved during preliminary research

    • NMF cases (tax class 6 in DLN). See IRM 21.5.7.4.7.11, Automated Non-Master File (ANMF) Payments

    • Treasury Bonds, after IDRS research. See IRM 21.5.7.4.7.13, Treasury Bonds

    • Unpostable codes 140 or 399 from the unpostable unit

    • Field office payments without a field office or RRPS endorsement

    • Closed unpostable cases

    • Slipped/Mixed entity or block conditions involving more than three taxpayer accounts

    • Payments over seven years old not located in the Excess Collection Files

    • Reject transactions

    • Electronic payments not located through specified research

    • Department of Justice, (DOJ), endorsed payments; Refer to Atlanta Submission Processing Center, HPTF

    • Form 809 or cash register receipt payments, after preliminary research

    • "Free" Items

    Caution:

    Only send dishonored checks to the HPTF, if you have proof the check was cashed.

  5. HPTF may transfer cases to other campus HPTF, if applicable. In most situations the case should already be in the campus that processed the payment.

  6. If a refund should be issued, HPTF will apply the tentative substantiated credit, with received date and amount indicated on the proof of payment, within 10 work days of receipt in HPTF.

  7. HPTF is responsible for all subsequent communication with taxpayer after they accept the case.

    Note:

    Retain the case file in the HPTF closed file, in alphabetical order, and retire to the Federal Records Center one year after closure.

21.5.7.4.3  (04-19-2006)
Payment Tracers with Collection Issues

  1. Payment tracer cases with collection issues should be routed per IRM 21.3.3.4.10.2,Campus Collection Function Correspondence/Inquiry/Notice.

21.5.7.4.4  (10-01-2003)
Payment Tracer Forms

  1. Special forms are prepared for payment tracer cases. These forms are:

    • Form 4446, Payment Tracer Research Request Record

    • Form 8646, Checklist to Identify Delays in Processing Federal Tax Deposits (FTDs)

    • Form 8765, IDRS Control File Credit Application

    • Form 3809, Miscellaneous Adjustment Voucher (HPTF only)

    • Form 9533, Lockbox Information Requests

    • Form 8546, Claim for Reimbursement of Bank Charges Incurred Due to Erroneous Service Levy or Misplaced Payment

    • Form 11357, ISRP Image Request

21.5.7.4.4.1  (12-01-2006)
Form 4446, Payment Tracer Research Record

  1. Prepare Form 4446 Payment Tracer Research Request Record before sending cases to any function. Do not use Form 4442,Inquiry Referral, or Form 4159, Payment Tracer Request, for payment tracer case referrals to HPTF. Control case on IDRS with category code "PAYT" .

    Exception:

    AM Toll-Free assistors: See IRM 21.5.7.3.5(3), Remittance Left Attached to the Return, before requesting a document from Files that may still have the remittance attached.

    Note:

    Incomplete or illegible Forms 4446 could result in unnecessary taxpayer burden by delaying resolution. Please ensure the Form 4446 is complete and includes the originator’s name, TIN, and phone number. HPTF may return incomplete, or illegible Forms 4446 for additional research or information. HPTF should not reject Form 4446 if the site does not have access to the information, e.g., FTD Block Completion List, Form 813. Managerial review should ensure that all available preliminary research was completed before manager signs off on the Form 4446.


    Form 4446 can be completed online. To ensure Form 4446 is always legible, complete online unless the system is unavailable.

  2. Preliminary research includes:

    • Documentation of IDRS and CFOL, including command codes IMFOL, BMFOL, URINQ, XSINQ, UPTIN, SCFTR, and ANMF research.

    • Documentation on Form 4446 for RTR research.

    • Copy of the payment posting document if a potential mixed/slipped block condition is discovered. This is also needed for encoding errors.

    • Copy of the front and back of the taxpayer's check, if the payment cannot be located through IDRS or RTR research.

  3. FTD cases must have the following research attached to Form 4446:

    1. Legible copy of the front and back of the cancelled check

    2. SCRIPS image of Advice of Credit (AOC) and FTD coupons

    3. SCRIPS images of entire FTD block (if duplicate block condition exists)

    4. FTD Block Completion List Research (if available)

    5. FTD EIN/Money Tape research (payments made prior to September 1, 2003)

    6. Screen print of Letter 878C

    Note:

    Allow two weeks to receive the information in (b), (c), (d), and (e) above. If after two attempts, the information is not obtained, forward the case to HPTF with proof attached (copy of print request completed screens for 1st & 2nd attempts).

    Note:

    To determine which campus processed the FTD coupon, look at who processed the most current payments. The address of the taxpayer on the check can also lead you to the correct campus, although this is not true in all cases.

21.5.7.4.4.2  (10-01-2007)
Form 8765, IDRS Control File Credit Application

  1. When the missing payment is located in the Unidentified Remittance File (URF) or Excess Collection File (XSF), application of the credit cannot be made by persons outside the Unidentified/Excess Collection function. Form 8765, IDRS Control File Credit Application, is used to request Unidentified/Excess to transfer money from the URF and XSF to the taxpayer's account.

    Note:

    The Unidentified/Excess Collection function is usually located in the Accounting Control/Services Operation. Any campus Accounting Control/Services Operation can place funds in URF/XSF; however, transferring money from URF/XSF must be done by the campus that placed funds in URF/XSF. The Campus can be identified by the first two digits of the Credit Reversal DLN

    Contact number can be found by selecting UNIDENTIFIED/ EXCESS COLLECTION CONTACTSunder the Who/Where tab on the SERP Home Page

  2. The request should identify where to apply the money and supply the documentation from the taxpayer, including:

    • TIN

    • Name Control

    • Dollar amount

    • MFT

    • Tax Period Ending

    • Control Number

    • Remarks (required entry)

    • Date, name, and employee IDRS number of preparer of Form 8765 (required entries).

    Form 8765 should have documentation attached identifying the credit as well as justifying its requested application through correspondence, research performed, etc. If Form 8765 is received without this documentation or without proper completion of all required entries, the Form 8765 will be returned to the requestor immediately. If required by another IRM, ensure all specific documentation on credits of $100,000 or more are recorded on, or attached to, the Form 8765 (i.e. research for finding phone numbers, phone call attempts, managerial approval, or RTR prints.)

  3. For additional information on Form 8765 see IRM 3.17.10.3, Unidentified Remittance File (URF), and IRM 3.17.220, Excess Collections File.

21.5.7.4.4.3  (10-01-2003)
Form 3809, Miscellaneous Adjustment Voucher

  1. Only HPTF will prepare Form 3809,Miscellaneous Adjustment Voucherfor a TC 760, Substantiated Credit Payment Allowance to:

    • Allow and reverse tentative substantiated credit from Account 6570

    • Allow a credit from Account 7650, Losses and Shortages