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Part 21. Customer Account Services

Chapter 7. Business Tax Returns and Non-Master File Accounts

Section 1. BMF/NMF Miscellaneous Information

21.7.1  BMF/NMF Miscellaneous Information

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21.7.1.1  (01-01-2005)
Business Tax Returns and Non-Master File Accounts Overview

  1. This section is designed to assist you in resolving Business and Non-Master File accounts. It provides:

    1. Procedures for addressing/resolving telephone, paper, and Taxpayer Assistance Centers (Walk-In sites) issues

    2. Procedures for issues relating to tax adjustments

21.7.1.2  (01-01-2005)
What Are Business Tax Returns and Non-Master File Accounts?

  1. The types of tax and related returns in this section are:

    • Employment returns (Forms 941, 943, 944, 945) and Supporting Statement to Correct Information (Form 941c)

    • Unemployment returns (Forms 940, 940-EZ)

    • Corporate income tax returns (Form 1120 series, except International returns)

    • Fiduciary returns (Forms 1041, 1041-A, 5227)

    • Partnership returns (Forms 1065, 1065-B)

    • Real Estate Mortgage Investment Conduit (REMIC) returns (Form 1066)

    • Required Payment for Refund Under Section 7519 (Form 8752)

    • Railroad returns (Forms CT-1, CT-2)

    • Estate and Gift tax returns (Forms 706 and 709 series)

    • Exempt organizations (Forms 990, 990-EZ, 990-C (LMSB - replaced by Form 1120-C), 990-T, 990-PF, 990-BL, 4720)

    • Excise tax returns (Forms 11-C, 720, 730, 2290)

    • Various NMF returns

21.7.1.3  (01-10-2007)
Business Research

  1. Research procedures and adjustment actions are contained throughout this chapter within each type of form/tax.

  2. Refer to the appropriate reference material to research technical issues, e.g., Publication 15 and Publication 334.

  3. See Document 6209, IRS Processing Codes and Information, IRM 2.3, IDRS Terminal Responses, IRM 2.4, IDRS Terminal Input, IRM 20.1, Penalties, IRM 20.2, Interest, IRM 13.1, Taxpayer Advocate Service, etc. for additional instructions.

  4. For Telephone Excise Tax Refund (TETR), see IRM 21.7.4.4.23, Business Tax Returns and Non-Master File Accounts and IRM 21.7.7.4.3.8, Exempt Organizations and Tax Exempt Bonds.

21.7.1.3.1  (01-01-2006)
Taxpayer Advocate Service (TAS)

  1. Taxpayer Advocate Service (TAS) IRMs are used in special instances. If during a taxpayer contact, you identify situations that need special attention, see IRM 13.1.7 or IRM 21.1.3.18 for TAS guidelines.

21.7.1.3.1.1  (09-07-2006)
Congressional Correspondence

  1. All congressional correspondence account cases are worked by TAS. Route all congressional correspondence account cases per IRM 13.1.8.4.1, Taxpayer Advocate Case Procedures, Congressional Affairs Program.

21.7.1.3.1.2  (01-01-2006)
Hardship Situations

  1. If during a taxpayer contact, it appears there may be a hardship situation, complete Form 911, Application for Taxpayer Assistance Order, and refer the taxpayer to the Taxpayer Advocate Service (TAS). See IRM 13.1.7 or IRM 21.1.3.18.

21.7.1.3.2  (01-01-2005)
Small Business Internet Site

  1. Refer taxpayers who want to use the internet and are interested in resources and services for businesses to www.irs.gov/business.

21.7.1.4  (04-17-2007)
BMF/NMF Adjustment Procedures

  1. The following actions can be taken with oral statement on BMF accounts:

    1. Payment/credit transfers (See IRM 21.5.7 and IRM 21.5.8 )

    2. Changes to item reference codes/numbers (not tax)

    3. Penalty abatements (except exempt organization incomplete return abatement requests, worked at the Ogden Campus only and failure by large partnerships to file Form 1065 electronically, worked at the Ogden Submission Processing Center (OSPC) See IRM 20.1.1.3.5.3 for tolerance information.)

    4. Entity corrections, except first line name changes, unless correction is for a spelling error (This would include changing the name control for a spelling error.) For an address change, see IRM 21.1.3.20

    5. Decimal point errors (increase or decrease) for tax or credits to restore figures as shown on the return

    6. Missing schedule (information shown on original or amended return but schedule was not attached), taxpayer can fax copy

    7. Verification that a return is a true duplicate return (except Form 1065)

    8. Math errors/IRS errors

    9. Certain administrative errors as noted in the text of this chapter (See IRM 21.7.2.4.9.1, Administrative Errors.)

    Note:

    See 21.5.2.4.2 for complete information on Oral Authority.

  2. Enter any adjustment remarks in the "Remarks" section of CC ADJ54 on IDRS. See IRM 21.1.3.20 for information on remarks, oral statement, and source document requirements.

  3. IRM 21.7.1.4 and its subsections contain general procedures and information to bear in mind when inputting adjustments.

21.7.1.4.1  (01-01-2005)
Transaction Codes (TCs)

  1. TCs are used to make adjustments to the masterfile (MF) through IDRS.

  2. The primary TCs to adjust tax are:

    • TC 290 to increase tax

    • TC 291 to decrease tax

21.7.1.4.2  (03-24-2006)
Notice Suppression Indicator (NSI)

  1. NSI 1 prevents small balances from being printed on adjustment notices CP 210, CP 220, CP 910, or CP 920.

    1. NSI 1 suppresses adjustment data on the notice. It does not suppress the notice.

    2. The notice is issued with the following modified wording: "This is in response to your request for an adjustment to your tax account for the period indicated above. The adjustment was made for the exact amount you requested."

  2. Use NSI 1 when the adjustment is for the exact amount the taxpayer requested and the adjustment will result in one of the following:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Based on an analysis of the case issues, do not use NSI 1 if the taxpayer would be better served by using the normal unabbreviated notice.

21.7.1.4.3  (10-01-2007)
Miscellaneous Codes

  1. Listed below are references for other codes:

    • Hold Codes - IRM 21.5.2.4 and Document 6209

    • Reason Codes - (penalties only, for BMF) IRM 20.1.1 and Document 6209

    • Posting Delay Codes - IRM 21.5.2.4

    • Freeze Codes - IRM 21.5.6 and Document 6209

    • Priority Codes - IRM 21.5.2.4 and Document 6209

21.7.1.4.4  (01-10-2007)
Miscellaneous Adjustment Situations (BMF)

  1. Case is assigned to Accounts Management by Output Review. TC 841 must be posted ('P–' Freeze) before making an adjustment if a case is assigned to Accounts Management by Output Review as a result of a TC 976 on the module.

  2. Refund deletions. To avoid incorrect notices being generated, do not input any necessary credit transfers until after the TC 841 has posted.

  3. Computer Condition Code (CCC) G. When Code & Edit enters CCC G on an amended return:

    1. The return posts to the module as a TC 976.

    2. To prevent the return from posting as an original, no tax data is entered.

    3. Money submitted with the return is frozen from refunding until the case is resolved.

  4. Failure to File (FTF)/Failure to Pay (FTP) penalties and interest-computer.

    1. The computer assesses or abates FTF and FTP penalties based on adjustments made to the module except when these penalties are assessed manually or other restrictions to the penalties are present on the module. See IRM 20.1.2 , FTF/ FTP Penalties, for additional information.

    2. In most cases, adjustments to interest are not necessary.

    3. The computer generates assessments and abatements of interest on all transactions except when interest has been restricted. (See IRM 20.2 , Interest.)

  5. Difference between taxpayer's computation and yours. When your computation is different from the taxpayer's, provide a complete explanation by letter or phone if the reason for adjustment would not be sufficiently clear from the generated adjustment notice.

  6. Ensure correct adjustments. If posted data does not match data provided by the taxpayer, and the change is over tolerance, use CFOL command codes or secure the original return before contacting the taxpayer for additional information.

    If Then
    Amended return can be verified with posted data or with CFOL codes Do not request the original return.
    Return has not been received within 40 days, or after two requests Contact the taxpayer to secure a copy. (Faxed copies of the original return are acceptable.)
    Original return is requested and it is determined no adjustment is necessary Forward the return to Files using local procedures.
    Document code 54 refile DLN is required Input TC 290 $.00 using a document code 54 refile DLN.
    Document code 54 refile DLN is not required Each campus should determine whether to refile under an old or new control DLN. The method should be uniform in each campus.

  7. Adjustments creating a refile DLN. These adjustments must have the original return attached. If not, prepare Form 2275 to associate the original return with the adjustment document.

    1. Blocking series (BS) 18 can be used instead of Form 2275 .

      Note:

      Use the appropriate non-refile BS if the original return was filed electronically. Do not use BS 18.

    2. BS 18 updates the control DLN.

    3. BS 18 generates CP 155 which notifies Files to refile the return/case under the new control DLN.

    4. BS 18 is valid for all MFTs except 06,13, 36, and 67.

  8. 45 day interest free period. See IRM 20.2, Interest, for more information on interest free period involving original returns, claims, and refunds.

  9. $10 million assessments. Assessments over $10 million must be analyzed by Office of Unpaid Assessments (Accounts Receivable) to determine if they have been classified correctly for required financial statements. Forward documentation (photocopies) of assessments over $10 million (when the account has not been full paid) to:

    Caution:

    This contact number and address are for internal use only. It is not staffed for public contact. Do not give out to taxpayers.

    Internal Revenue Service CFO, Business Analysis & Support Section
    Stop S-2
    1035 333 W. Pershing Rd.
    Kansas City, MO 64108
    Telephone number 816-291-9486
    Fax number 816-292-6100

21.7.1.4.4.1  (01-01-2007)
Toll-free Calls When Return Needed

  1. In cases where a one or two page return (941/943/945/940 etc.) is the issue, the CSR should attempt to have the TP fax a signed copy of the return first and work the case themselves. If the needed return is a more complicated form (706, 709, 1120 or 1065) do not request a faxed copy.

  2. In a remote call-site, if analysis of the case results in requiring a return pulled from Files (e.g. paper return filed with Brookhaven DLN 19), complete an e-4442/F4442 and:

    • Oakland sends it to Ogden (unless return was filed in Cincinnati).

    • Buffalo sends it to Cincinnati (unless return was filed in Ogden).

  3. In a campus call site, if analysis of the case results in requiring a return pulled from Files, send a completed e-4442/4442 to the campus where the return was filed.

  4. The site receiving the e-4442/4442 requests the return from Files and completes the case.

  5. BMF returns are filed at Cincinnati or Ogden and identified by DLN.

  6. Cincinnati DLNs begin with 17, 31 or 34.

  7. Ogden DLN's begin with 29, 60, 78, 81, 82, 83, 84, 86 or 87.

  8. Any other DLN's beginning with numbers not shown above are most likely e-filed or mag filed and the CSR can work the case without pulling the TC 150.

21.7.1.4.5  (01-01-2005)
Federal Agencies

  1. The following contains information on claims filed by federal agencies and payments made by the Federal Agency Tax Payment System (FEDTAX).

21.7.1.4.5.1  (01-01-2006)
Federal Agency Tax Payment System (FEDTAX)

  1. FEDTAX is a joint initiative of IRS and the Financial Management Service (FMS) to automate the processing of federal agency tax payments and Form 941.

    1. IRS procedures - See IRM 3.17.277, Electronic Payments.

    2. Money is transferred from the agency's appropriation to IRS without preparing a check or other banking transaction.

    3. FEDTAX accumulates Form 941 tax liability information from each payment record and builds a draft Form 941 for the agency to approve and submit electronically.

    4. Payments for any type return can be processed on FEDTAX.

    5. Form 941 is the only return processed under FEDTAX.

    6. Other returns of federal agencies are mailed and processed in the normal manner.

    7. Requests for adjustments to posted returns are processed in the campus where received, in the normal manner.

    8. Federal agencies are identified on ENMOD by employment code F.

21.7.1.4.5.2  (01-01-2007)
FEDTAX II Payments and Forms 941

  1. Payments are processed through EFTPS. See IRM 3.17.277, Electronic Payments, for more information. See IRM 21.7.1.4.8.1.3 for more information on EFTPS deposit requirements.

  2. FEDTAX II Forms 941 are processed through the e-file system.

  3. The FEDTAX II system builds a Form 941 as payments are input by the Federal agency.

  4. A completed Form 941 is displayed at the end of each quarter (after all payments are made) for the agency to verify.

  5. The agency signs its Form 941 with a PIN received from the Cincinnati Campus.

  6. The EFTPS financial agent transmits Forms 941 to Tennessee Computing Center and then they are processed at Cincinnati.

21.7.1.4.5.2.1  (01-01-2007)
FEDTAX II Forms 941c

  1. When Form 941c is required, the Federal Agency creates and prints it on the FEDTAX II system. After completion, it is faxed to the appropriate campus for processing.

  2. When processing is completed, Form 941c is routed to Accounts Management for normal Form 941c processing.

21.7.1.4.5.2.2  (01-01-2006)
FEDTAX II Phone Numbers

  1. Refer Customer Account Service inquiries to 1-877-FEDTAX2 (1-877-333-8292).

21.7.1.4.5.2.3  (01-01-2006)
FEDTAX II Entity Changes and Requests

  1. Entity changes and requests for EINs are processed in the same manner as other businesses. Refer to IRM 21.7.13 for specific procedures.

  2. A weekly entity change file automatically updates the FEDTAX II data base.

21.7.1.4.5.3  (01-12-2007)
Abatement of Penalty and Interest Involving Federal Agencies

  1. Policy Statement P-2-4 eliminated the assessment of penalty/interest against federal agencies. IRM 3.13.2, BMF Account Numbers, contains a list of federal agencies with employment code "F."

  2. Allow claims for refund involving penalty/interest incorrectly assessed on federal agencies.

21.7.1.4.6  (10-01-2007)
BMF Offset Program

  1. This section contains background information on the BMF Offset Program, information on the various freeze conditions, and a synopsis of offsets of BMF overpayments to past due federal agency debts.

  2. The BMF Offset Program allows application of an overpayment from one business type of tax or tax period to satisfy an unpaid balance on another type of tax or tax period for the same taxpayer. It also allows offset to past due federal agency debts in some situations. For more information on past due federal agency debts, See IRM 21.7.1.4.6.4.

  3. The goal is to identify and resolve potentially incorrect balance due or credit balance situations before offset is made.

    1. No offsets involving FTD payment discrepancies should occur until the taxpayer has been notified of a balance due or overpayment on the account.

    2. This allows the taxpayer time to provide information to assist in locating and transferring missing payments, or properly apply any excess credits.

  4. CP 267 or CP 268 is generated when there is a discrepancy in the FTD credits claimed by the taxpayer and those credited to the taxpayer's account. (See IRM 21.7.11.4.9 for information on working responses to CP 267 or CP 268.)

    1. CP 267 is for returns which have no math error but a difference in FTD credits.

    2. CP 268 is for returns with math errors in addition to a difference in FTD credits.

    3. The notices list payment dates and amounts, math error explanation (CP 268), and a summary of the penalty and interest charges.

    4. Taxpayer is requested to indicate any payments erroneously credited or missing from the account and respond within 30 days.

    5. If taxpayer does not respond within 15 weeks, any overpayment is applied to other balance due accounts or refunded to taxpayer, if no other taxes are owed.

21.7.1.4.6.1  (01-01-2005)
-E Freeze/Debit Offset In

  1. The "-E" Freeze (which is released after 10 cycles) indicates an FTD discrepancy in the BMF debit module which generates a balance-due notice. The "-E" freeze module can contain debit balance modules resulting from posting of transactions subsequent to original return processing.

  2. Subsequent transactions can be any combination or separate posting of tax, penalty, interest, or credit reversals which result in the module going from zero or credit balance to a debit balance, or from a debit balance to a greater debit balance.

    1. The module balance prior to posting of the subsequent transaction can be zero, debit, or credit.

    2. The module balance after posting of the subsequent transaction must be a debit.

    3. The account cannot have a module currently in TDA Status 22, 23, 24, or 26 or have had a module closed from TDA Status in the prior 12 months.

  3. The "-E" freeze, under the subsequent transaction criteria, is released if:

    1. The 10 cycle freeze expires. (If all other criteria is met, the 10 cycle freeze is reset based on the most current subsequent transaction posting.)

    2. The module reaches zero or credit status.

    3. The account/module reaches TDA status.

  4. The appropriate notice is issued based on posting of the subsequent transaction(s) if a notice otherwise would have been issued.

21.7.1.4.6.2  (10-01-2007)
Q- Freeze/Offset

  1. A "Q-" freeze (which is released after 15 weeks) is initiated when there is an FTD overpayment discrepancy (more credits present than claimed on the return).

    1. If a discrepancy cannot be resolved within five workdays, CP 267 or CP 268 is released.

    2. To manually release the "Q-" freeze, use TC 290 $.00 with PC 4. (Use HC 3, if the refund will be for the amount requested by the taxpayer.)

    3. See IRM 21.7.11.4.9 for more information on the "Q-" freeze and procedures for working CP 267/268 cases.

21.7.1.4.6.3  (01-01-2005)
D- Freeze, TC 470, cc 97 Restricted to Examiners Working Large Corporate Accounts

  1. Use of TC 470 cc 97 is restricted to employees specifically designated to work Large Corporate Accounts, e.g., Technical Unit employees in Taxpayer Relations.

  2. All actions to these accounts must be coordinated with employees in the area designated to work Large Corporate Accounts.

21.7.1.4.6.4  (01-01-2005)
BMF Offset Program for Past Due Federal Agency Debt

  1. The Cash Management Improvement Act Amendments of 1992 mandates offset of "business association" refunds payable on or after January 1,1995 to past due federal agency non-tax debts.

  2. As of January 1999, FMS offsets eligible tax refunds for non-tax debts involving federal agencies and child support. This type of offset is referred to as a Treasury Offset Program (TOP) offset.

  3. See IRM 21.4.6, for information on DMF and TOP offsets.

21.7.1.4.7  (01-01-2005)
Employer Identification Numbers (EINs)

  1. All information on assignment of EINs has been moved to IRM 21.7.13.

21.7.1.4.8  (01-01-2006)
Federal Tax Deposits (FTDs)

  1. Generally, taxpayers who file Forms 941, 943, 944, 945, 720, 1042 1120, and CT-1 must deposit taxes with an authorized depositary when the tax liability reaches certain dollar amounts.

  2. There are basically three methods of paying the taxes:

    • EFTPS (recommended) - See IRM 21.7.1.4.8.1.

    • Authorized depository - See IRM 21.7.1.4.8.2.

    • Mailing the payment directly to the IRS (not recommended) - See IRM 21.7.1.4.8.3.

21.7.1.4.8.1  (01-01-2007)
Electronic Federal Tax Payment System (EFTPS)

  1. EFTPS is a tax payment system offered free by the U.S. Department of the Treasury. EFTPS enables taxpayers to pay their federal taxes electronically using the internet or telephone. Both business and individual taxpayers can use EFTPS. Some businesses are mandated to use EFTPS, but any taxpayer can voluntarily participate.

  2. EFTPS uses ACH, the Automated Clearing House financial network which transfers funds and tracks tax payment information to IRS.

  3. See IRM 21.5.7 for payment tracer cases involving EFTPS payments.

  4. See IRM 21.7.11.4.1 for information on CP 108 inquiries involving EFTPS payments and for more information on how the Voice Response Units (VRUs) work.

  5. See IRM 3.17.277, Electronic Payments, for additional information on all electronic payments, including additional information on EFTPS payments.

  6. For more information, see Publication 966, The Secure Way to Pay your Federal Taxes. It is for businesses and individuals and can be found on the Electronic Tax Administration site located on SERP, under the Local/Sites/Others tab.

21.7.1.4.8.1.1  (10-10-2007)
EFTPS Enrollment

  1. Taxpayers can enroll at http://www.eftps.com/ or by completing Form 9779, (Business Enrollment Form) or Form 9783 (Individual Enrollment Form) and mailing it to the EFTPS Enrollment Center listed on the form.

  2. Taxpayers can call the IRS Tax Forms toll-free number, 1-800-829-3676 for an enrollment form or order the form online at http://www.irs.gov/index.html. For additional enrollment information, taxpayers should call one of the customer service numbers listed.

    Type of Caller Toll-free Telephone Number
    Voice (business) 1-800-555-4477
    (EFTPS Customer Service)
    Voice (Individual) 1-800-316-6541
    (EFTPS Customer Service)
    Spanish 1-800-244-4829
    TDD (Telecommunications Deaf Device) 1-800-733-4829
    Financial Institutions 1-800-605-9876
    Batch Providers 1-800-945-0966
    Bulk Providers 1-866-684-6556

  3. Enrollment information is validated by IRS. The Treasury Financial Agent (TFA) originates prenote certifications (to validate the banking information) on the ACH debit applications. Allow four (4) weeks for the completion of the enrollment process and resolution of any problems which may occur.

  4. Taxpayers who use a third party payroll processor or service bureau can have them enroll the taxpayer. However, if the third party does only payroll; e.g., employment taxes, and the taxpayer must make other deposits; e.g., Forms 720, 1120, etc., the taxpayer must also enroll in order to deposit non-payroll taxes.

  5. Taxpayers must submit an enrollment form for each EIN or bank account.

  6. Businesses or individual taxpayers voluntarily using EFTPS can elect to make deposits using FTD coupons. Taxpayers required to use EFTPS may be subject to a penalty if they use a FTD coupon instead of EFTPS. See IRM 20.1.4.2.1 for additional information.

  7. Refer taxpayers with entity related questions, that the financial agent cannot resolve, to the IRS EFTPS hot-line in Ogden, at 1-866-255-0654 with option number 4.

21.7.1.4.8.1.2  (10-01-2007)
EFTPS - On-Line

  1. EFTPS On-Line website ( www.eftps.com) offers the following features over a secure SSL connection:

    • General information about EFTPS

    • EFTPS enrollment

    • ACH debit payments

    • Payment cancellation

    • Payment history research

    • Access payment history for a 16-month period of time

    • Search, print or download payment history by date, tax type, amount, form, etc.

    • Access links to states with electronic tax payment systems directly from the EFTPS Web site

    • Schedule all four estimated tax payments, Form 1040ES, all at once in one session

    • Installment agreement payments. EFTPS now has the ability to schedule payments up to 12 months in advance for individuals and up to 4 months for business taxpayers. (See IRM 5.19.1.5(5) for more information on EFTPS installment agreement payments and IRM 3.17.277 for more information on electronic payments.)

21.7.1.4.8.1.3  (01-01-2007)
EFTPS Deposit Requirements

  1. Taxpayers are required to use EFTPS if their "aggregate deposits" for the second preceding calendar year exceed $200,000. (For example, in 2007, the taxpayer is required to use EFTPS if aggregate deposits in 2005 exceeded $200,000.) Aggregate deposits means businesses must consider deposits for all types of taxes made during the year to determine if they exceed the $200,000 threshold.

    Note:

    Requirement to use EFTPS is based on deposits made, not on tax liability.

  2. A taxpayer who exceeds the threshold in one year is not permitted to resume making paper coupon deposits if aggregate deposits fall below $200,000 in a subsequent year.

  3. Thresholds are determined by the amount of deposits made during the calendar year, not on the dates the liabilities for those deposits were incurred.

    Note:

    See IRM 20.1.4 for more information on FTD penalties.

21.7.1.4.8.1.4  (01-01-2006)
EFTPS Payment Methods

  1. EFTPS uses ACH to transfer funds electronically from taxpayer's account to the Treasury's account. ACH is a system used by the banking industry to transfer funds electronically. FMS hired Bank of America to process ACH payments for IRS.

  2. After taxpayer enrolls, a Personal Identification Number (PIN) is issued. The PIN is used to make payments and to obtain information from EFTPS.

  3. There are two primary payment methods to transfer funds with EFTPS (regardless of the payment option selected, the tax due date remains the same):

    • EFTPS Direct (ACH Debit)

    • EFTPS Through Your Financial Institution (ACH Credit)

  4. Taxpayer may also select Same Day Payment method offered by some financial institutions.

  5. After the taxpayer has initiated payment, the financial agent assigns a 15-digit number to the transaction. The payment method can be identified by the second position in the EFT number. (See IRM 3.17.277.4.3 for breakdown of EFT number.)

21.7.1.4.8.1.5  (10-01-2007)
EFTPS Direct (ACH Debit)

  1. ACH Debit, also known as, EFTPS Direct, represents the majority of payments processed by EFTPS. The taxpayer instructs the TFA to originate a debit against taxpayer's account and transfer the funds to Treasury's account. If a taxpayer chooses EFTPS Direct, the taxpayer can also use the EFTPS Through Your Financial Institution payment option without enrolling again.

  2. There are two reporting methods:

    1. Voice Response Unit (VRU)- taxpayer uses a touch tone phone to enter payment information. The information is entered in response to prompts into the VRU. The EFTPS phone can be accessed 24 hours a day, 7 days a week.

    2. Online - taxpayer uses the Internet to enter payment information. The website address is www.eftps.com For more information, See IRM 21.7.1.4.8.1.IRM 3.17.277.4 also has information on the EFT number.

  3. To make an EFTPS Direct payment, at least one calendar day prior to the tax due date before 8:00 p.m. ET, the taxpayer must access EFTPS by telephone or the Internet, and input the necessary information when prompted. However, the payment does not move until the date specified by the taxpayer.

  4. After a taxpayer enters the information, EFTPS generates an Electronic Funds Transfer (EFT) Confirmation Number. Taxpayers should write down and keep this number for future reference. If there is any problem with the payment, this number allows the TFA and IRS to trace the payment quickly by reconstructing the EFT number. (See IRM 21.5.7.4 for information on how to reconstruct the EFT number.) ACH Debits are identified by payment code 2 in the second position of the EFT number.


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