21.4.4  Manual Refunds

Manual Transmittal

September 10, 2013

Purpose

(1) This transmits revised IRM 21.4.4, Refund Inquiries, Manual Refunds.

Material Changes

(1) Minor editorial changes have been made throughout this IRM.

(2) IPU 13U0648 issued 03-29-2013 IRM 21.4.4.2 Removed "Refunds less than $1.00" as a valid reason for a manual refund.

(3) IPU 13U1130 issued 06-21-2013 IRM 21.4.4.2 Clarified instructions for issuing a systemic refund for less than $1.00 only apply to Individual Master File (IMF) accounts at this time.

(4) IRM 21.4.4.2(3)(a) Added to information regarding Operation Assistance Request (OAR) received from Taxpayer Advocate Service (TAS).

(5) IPU 13U0648 issued 03-29-2013 IRM 21.4.4.2.1 Added instructions for issuing a systemic refund for less than $1.00.

(6) IPU 13U1130 issued 06-21-2013 IRM 21.4.4.2.1 Clarified these instructions only apply to IMF accounts at this time.

(7) IRM 21.4.4.2.1 Added information regarding UPC 438 RC 5. This will occur if a TC 386 with a matching transaction date is not found when inputting a TC 971 AC 652.

(8) IRM 21.4.4.3(3) and IRM 21.4.4.4(2) Removed reference to IRM 3.17.79-6, Manual Refund Checklist, as that exhibit will be removed from the IRM effective January 1, 2014.

(9) IRM 21.4.4.3.2 Updated information regarding TC 971 AC 664.

(10) IRM 21.4.4.3.5 Updated the list of freeze codes to include the Z- freeze that need to be coordinated with Criminal Investigations (CI) before issuing a manual refund.

(11) IPU 12U1942 issued 12-13-2012 IRM 21.4.4.4 Added clarification and instructions for preparing Form 5792, Request for IDRS Generated Refund, and Form 3753, Manual Refund Posting Voucher.

(12) IPU 13U0602 issued 03-25-2013 IRM 21.4.4.4 Added clarification regarding open controls when sending a manual refund to the Accounting Function.

(13) IPU 13U0648 issued 03-29-2013 IRM 21.4.4.4 Provided additional clarification regarding time frames for review and signing of manual refunds.

(14) IPU 13U1130 issued 06-21-2013 IRM 21.4.4.4 Removed information added by IPU 13U0648 regarding time frames for review and signing of manual refunds. The category code used for monitoring manual refunds will generally be "MISC" .

(15) IPU 13U1210 issued 07-10-2013 IRM 21.4.4.4 CC Added requirement for CC NOREF to be input on IMF manual refunds.

(16) IPU 13U1249 issued 07-18-2013 IRM 21.4.4.4 Added information to the CC NOREF instructions.

(17) IRM 21.4.4.4(1) Added information regarding Refund Anticipation Loan (RAL) or Refund Anticipation Check (RAC).

(18) IRM 21.4.4.4(4)e Removed requirement that manual refund signatures must be in blue ink.

(19) IRM 21.4.4.4(5) Added a note indicating that a CC COMPA print is not needed when reissuing a returned refund check.

(20) IRM 21.4.4.4(6) Updated information regarding required IDRS prints/information.

(21) IPU 13U1130 issued 06-21-2013 IRM 21.4.4.4 and IRM 21.4.4.4.1 Added clarification regarding Injured Spouse documentation.

(22) IPU 13U0212 issued 01-25-2013 IRM 21.4.4.4.1 and IRM 21.4.4.4.2 - Added when issuing a manual refund, previously assessed or unassessed penalties and/or interest must be considered.

(23) IRM 21.4.4.4.1(3) Added bypass indicators (BPI) 8 and 9 to the list of valid BPIs that can be used on manual refunds.

(24) IRM 21.4.4.4.1(5) Added note indicating CC COMPA print is not necessary when reissuing a returned refund check.

(25) IRM 21.4.4.4.2(6) Added information about attaching an Automated Computation Tool (ACT)/Decision Modeling Inc. (DMI) Report 490 instead of attaching a COMPA print.

(26) IRM 21.4.4.5 Updated information regarding the campus and teams that will provide a technical review of manual refunds over $1 million dollars containing credit interest.

(27) IPU 13U0212 issued 01-25-2013 IRM 21.4.4.5 - Added a reference to IRM 21.4.6.4.1.1, Tax Offset Reversal, when issuing a manual refund.

(28) IPU 13U0602 issued 03-25-2013 IRM 21.4.4.5 Added requirement to input a TC 571 with a posting delay code when reversing a credit offset. If a credit offset reversal is not needed, a note must be added in the remarks field of the manual refund document.

(29) IRM 21.4.4.5(7) Removed information regarding manual refunds sent to a power of attorney (POA). POAs do not have authority to accept refunds.

(30) IPU 12U1791 issued 11-01-2012 IRM 21.4.4.5.1 Amended the managerial review requirements.

(31) IRM 21.4.4.5.1 Added instructions on how to resolve an error with the Integrated Automation Technologies (IAT) Erroneous Manual Refund Tool (EMT)/Case Monitoring tool not moving the account from the active to the archive file.

(32) IRM 21.4.4.5.1(3) Added information as to who can perform the managerial monitoring of manual refunds.

(33) IPU 13U0648 issued 03-29-2013 IRM 21.4.4.6.1 Indicated generation of "DUPREF" transcripts have been discontinued.

(34) IRM 21.4.4-2 Replaced manual refund checklist with a newer version.

(35) IRM 21.4.4-3 Updated information for the Ogden Accounting Function.

Effect on Other Documents

IRM 21.4.4, Manual Refunds, dated August 28, 2012, (effective October 1, 2012) is superseded. The following IRM Procedural Updates (IPUs), issued between November 1, 2012 through July 18, 2013, have been incorporated into this IRM: 12U1791, 12U1942, 13U0212, 13U0602, 13U0648, 13U1130, 13U1210, and 13U1249.

Audience

Employees located in all business operating divisions who have contact with taxpayers either by phone, correspondence or personal contact

Effective Date

(10-01-2013)

Ivy S. McChesney
Director, Accounts Management
Wage and Investment Division

21.4.4.1  (05-16-2011)
What Is a Manual Refund?

  1. A manual refund, (transaction code (TC) 840), is a refund that is not generated through normal Master File processing (TC 846). Manual refunds are requested on either Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund.

  2. Employees from all functions can initiate requests for manual refunds. The Form 3753 or Form 5792 manual refund requests are prepared by the initiator and are processed by the Accounting Function of the Submission Processing Campus who schedules and certifies manual refunds.

  3. All requests for manual refunds must be controlled and monitored on the Integrated Data Retrieval System (IDRS) by the initiator (or other management designated employee) to prevent duplicate, erroneous refunds. See IRM 21.4.4.5.1, Monitoring Manual Refunds, for more information.

    Exception:

    Manual refunds issued for the Medical Resident Federal Insurance Contribution Act (FICA) Refund Claims are not included in the normal manual refund monitoring procedures. A unique process has been established in which the initiator will not be the individual monitoring the refund, instead, the originator of the perfected claim will conduct the monitoring. This process will ensure timely monitoring of these specific manual refunds. Refer to IR-2010-25, IRS To Honor Medical Resident FICA Refund Claims, for more information on these specific claims.

  4. This IRM provides information on the types of manual refunds and the actions needed to initiate a manual refund. Other IRM sections will give specific situations when a manual refund is required.

21.4.4.2  (10-01-2013)
Why Would A Manual Refund Be Needed?

  1. The most frequent causes of manual refunds are:

    1. The refund will be going to someone other than the entity name on the master file;

    2. A hardship situation necessitates a quicker refund than normal systemic processing can provide, generally a request is sent by the Taxpayer Advocate Service (TAS) using an Operations Assistance Request (OAR);

    3. The refund is not for a Master File account (e.g., Photocopy Fees or Credit Card Chargebacks); or

    4. Systemic limitations prevent a normal computer generated refund.

  2. Input of manual refunds without consideration of systemic account issues or Customer Account Data Engine (CADE) 2 processing (on Individual Master File (IMF) accounts) can result in erroneous refunds. In addition, improper IDRS controls and lack of required monitoring can result in erroneous refunds.

    Caution:

    A manual refund should not be initiated if an IDRS generated refund will be issued within two cycles. If a manual refund needs to be initiated, all efforts should be made to prevent a duplicate systemic refund from being issued.

    Exception:

    A taxpayer with a hardship as defined in IRM 13.1.7.2.1, TAS Case Criteria 1 - 4, Economic Burden, or in some circumstances IRM 13.1.7.2.2, TAS Case Criteria 5 - 7, Systemic Burden, may justify initiating a manual refund in lieu of waiting two cycles for issuance of an IDRS generated refund.

  3. The following are some circumstances that may warrant the issuance of a manual refund (this list is not all inclusive):

    1. Hardship - Those refunds required based on a hardship where the taxpayer needs the refund in less than ten days.
      When it is necessary to expedite a refund, employees can use Form 5792 to provide the customer a refund within 7 to 10 days. TAS employees can initiate a hardship direct deposit, once all documentation has been received, by using Form 3753, to provide a refund to the customer within 2 to 3 business days. See IRM 3.17.79.6.4.2, Certifying ACH/Direct Deposit Hardship Refunds, for manual refund procedures to issue an Automated Clearing House (ACH)/direct deposit hardship manual refund.

      Caution:

      Prior to issuing a manual refund on a taxpayer's hardship request; determine if the original return refund request is a direct deposit, Refund Anticipation Loan (RAL), or Refund Anticipated Check (RAC). Releasing an account refund hold to generate a refund to these accounts could result in a quicker refund to the taxpayer than issuing a paper (Form 5792) manual refund.

      The completed Forms 3753 and/or Forms 5792 are processed by the Submission Processing Accounting Function. The manual refund is issued within a few business days of IDRS input. However, when issuing a refund utilizing Form 3753 it takes 4 - 6 weeks for the TC 840 to post to Master File.

      Note:

      Taxpayers requesting manual refunds for hardship reasons should be referred to TAS for hardship determination unless the refund can be initiated within 24 hours. Areas referring these cases to TAS, should ensure they have thoroughly documented the Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), when an apparent hardship exists. Advise the taxpayer he/she should be contacted by TAS within 7 business days to validate the hardship.

      Note:

      When TAS has made a hardship determination on an account with an open control in another area, they will send an OAR to that area requesting the refund be released or that TAS be given written approval (via the OAR or e-mail) to input the manual refund. If the area is to release the refund, the refund should be released systemically unless the OAR indicates a manual refund should be issued. Refer to IRM 3.17.79.3.3, Issuing Hardship Refunds, to determine supporting documentation requirements.

    2. Dual Status Returns - See IRM 3.17.79.3.17, Non-Resident Alien and Dual Status Refunds (Austin Only District Office or DO 97 and 98).

    3. Civil Cases

    4. Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Taxes. See IRM 3.17.79.3.12, Form 4466, Corporation Application for a Quick Refund of Overpayment of Estimated Tax.

    5. Form 8302, Electronic Deposit of Tax Refund of $1 Million or More. See IRM 3.17.79.3.10.1, Form 8302, Electronic Deposit of Tax of $1 Million or More.

    6. Form 8050, Direct Deposit of Corporate Tax Refund - See IRM 3.12.217-8, Direct Deposit of Corporate Tax Refund.

    7. Refunds less than $1.00 on BMF accounts.

      Note:

      Refunds less than $1.00 on IMF modules no longer require a manual refund. Refer to IRM 21.4.4.2.1, Requests for Refund Less Than $1.00.

    8. Any refund of ≡ ≡ ≡ ≡ ≡ or more must be issued as a manual refund.

    9. Non Master File Refunds

    10. Congressional Inquiries

    11. Interest Bearing Excise Fuel Claims - See IRM 21.7.8.4.5.3, Form 8849, Schedule 2, Sales by Registered Ultimate Vendors, IRM 21.7.8.4.5.4, Form 8849, Schedule 3, Certain Fuel Mixtures and the Alternative Fuel Credit, and IRM 21.7.8.4.5.8, Form 8849, Schedule 8, Registered Credit Card Issuers.

    12. Offers in Compromise - See IRM 5.19.7.3.12.3, Disposition of OIC Deposits.

    13. State Income Tax Levy Program - See IRM 5.19.9.2, State Income Tax Levy Program (SITLP) General.

    14. Return of levied property to taxpayer - See IRM 5.19.4.4.12,Wrongful Levies, or IRM 5.11.2.2.2.1, Certain Wrongful Levy Situations.

    15. Statute Imminent cases

    16. Injured Spouse Claims - See IRM 21.4.6, Refund Offset.

    17. Tentative Carryback Cases - See IRM 21.5.9.5.12, Carryback Manual Refund.

    18. Deceased taxpayers - See IRM 21.6.6.3.22.2, Processing Decedent Account Refunds.

    19. Reimbursement of return photocopy fees - See IRM 21.4.4.6.2, Photocopy Fee Refunds.

    20. Chargeback for unauthorized credit card payments - See IRM 21.4.4.6.3, Credit Card Chargebacks.

    21. Taxpayers in bankruptcy

      Note:

      All taxpayer refund inquiries regarding bankruptcy should be referred to the Centralized Insolvency Operation (CIO) in Philadelphia at 1-800-973-0424. Do not refer taxpayers to CIO if the only issue is the status of the refund and IDRS shows a refund is scheduled to be sent, or was recently sent.

    22. Non-receipt of direct deposit refunds due to IRS error - See IRM 21.4.1.4.7.5, Non-Receipt of Direct Deposited Refunds - "Refund Inquiry Employees."

    23. To release an X- freeze

    24. Refund consists of Chapter Three Withholding (CTW) and non-CTW withholding

    25. Refunds issued after the RSED has expired (prevention of RSED-STAT Transcript generating to the Statute Team) - See IRM 21.5.3.4.3, Tax Decrease and Statute Consideration, and IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim.

    26. Identity Theft - See IRM 21.9.2, Accounts Management Identity Theft.

21.4.4.2.1  (10-01-2013)
Requests for Refund Less Than $1.00

  1. Overpayments of less than $1 are systemically cleared from the module by the posting of a TC 386. If a taxpayer requests a refund of an overpayment of less than $1.00 for IMF accounts, use the following procedures to reverse the TC 386 and force the generation of a systemic refund:

    1. Input a TC 971 action code (AC) 652 using CC REQ77. Refer to IRM 2.4.19, Command Codes REQ77, REM77, and FRM7A.

    2. Enter the transaction date of the TC 386 on line 3 positions 47 - 55, TRANS-DT>.

  2. The above actions will post a TC 387, reversing the TC 386, and will generate a systemic refund (TC 846) via a paper check to the address of record.

    Note:

    If the request for a refund for less than $1.00 meets other manual refund criteria, such as a deceased taxpayer, follow normal manual refund procedures.

  3. Requests for a refund of an overpayment of less than $1.00 for Business Master File (BMF) accounts must be issued as a manual refund.

  4. If the module does not contain a posted TC 386 with a matching transaction date, the TC 971 AC 652 will unpost showing unpostable code (UPC) 438 RC 5.

21.4.4.3  (10-01-2013)
What Research Is Required?

  1. Thorough IDRS research must be completed before submitting a manual refund request to the Accounting Function. IDRS research is not required if the refund is being prepared for the Bureau of Public Debt.

  2. This section details the research needed for all other manual refunds.

  3. Failure to perform the necessary IDRS research, or to provide the supporting documentation when the manual refund is submitted to the Accounting Function, will result in the manual refund request being rejected back to the initiator.

    Note:

    Refer to IRM 21.5.6.4.35.5, Refund Holds, for conditions under which the account will not reflect the refund transaction (TC 846) because an IMF refund hold is systemically preventing the refund transaction from generating.

21.4.4.3.1  (10-01-2011)
Refund Statute Expiration Date

  1. Before initiating a manual refund, verify that the Refund Statute Expiration date (RSED) has not expired.

  2. The RSED for prepaid credits must be checked for limitations on the amount claimed. If the claim was filed within three years of the filing of the return, the amount to be credited or refunded is limited to the tax paid (which includes tax, penalties, and interest) during the three years immediately preceding the filing of the claim, plus the period of any extension of time to file. See IRM 25.6.1.10.2.7.2.1, Three-year Rule, for additional information.

  3. If a return is not filed or the claim was not filed within three years of the return, the amount is limited to the portion of tax paid (the payment of tax could be for tax, penalty or interest) during the two years immediately preceding the filing of the claim. See IRM 25.6.1.10.2.7.2.2, Two-year Rule, for additional information.

  4. Questionable RSED issues should be referred to the Statute Coordinator in your area.

21.4.4.3.2  (10-01-2013)
Outstanding Balances/Duplicate Refunds

  1. Verify the taxpayer has no outstanding tax liabilities that must be satisfied. Generally, all debit balances must be satisfied before issuing a manual refund if the assessed balance is ≡ ≡ ≡ ≡ or more and/or accruals are ≡ ≡ ≡ ≡ ≡ ≡ or more. When an outstanding tax debt is identified, a manual refund may only be issued for the amount of overpayment in excess of the balance due.

    Exception:

    An Offset Bypass Refund (OBR) indicator may be used to bypass outstanding debts when economic hardship exists or based on certain TC 520 closing codes.

    For procedures on transferring credit to balance due accounts refer to IRM 21.5.8, Credit Transfers. For procedures on processing an original return with an offset bypass refund, see IRM 21.4.6.5.12.1, Offset Bypass Refund (OBR).

  2. On an IMF account, if a credit transfer and a manual refund are required on the same module:

    1. First, input the credit transfer using a TC 570 on the debit portion of the transfer in order to prevent a refund or offset of any remaining credit after the transfer. Refer to IRM 21.5.8.4.6(3), TC 570 and Bypass Indicator. Calculate the balance due to the date the credit became available and use that date as the credit transfer date.

    2. Then, input the manual refund.

      Caution:

      If the credit transfer is allowed to post at the same time as the manual refund and without a TC 570 on the debit portion of the transfer, the credit transfer will release the hold on the account and will then issue a systemic refund before the manual refund posts. This will create an erroneous refund.

  3. Initiators must review the account using IDRS research to ensure there are no prior, duplicate, manual (TC 840) or computer generated (TC 846) refunds issued for the credit being refunded.

    Caution:

    A TC 971 AC 664 indicates a Form 3753, Manual Refund Posting Voucher, has been processed by the Accounting Function and a TC 840 will post to the account within 4 to 6 weeks. Do not input a second manual refund for the same overpayment.


    Research all related accounts using appropriate command codes the same day a manual refund is prepared to verify that a duplicate refund will not be issued.

  4. Verify that the claimed credits (payments) are available for refund and provide documentation (e.g., command code (CC) TXMOD print) showing the available credit. Research for any open control bases and coordinate as necessary. The first two digits of the employee IDRS number (Office Identifiers) will identify the employee's location:

    Office Identifiers Campus
    01 Brookhaven
    02 Cincinnati
    03 Memphis
    04 Ogden
    05 Philadelphia
    06 Austin
    07 Atlanta
    08 Andover
    09 Kansas City
    10 Fresno
    63 Taxpayer Advocate Service

  5. All records of accounts must be researched including:

    • Individual Master File (IMF)

    • Business Master File (BMF)

    • Non Master File (NMF)

21.4.4.3.3  (10-01-2010)
Non Master File Research

  1. Research is needed to identify any outstanding balances on Non Master File. Indicators of Non Master File account activity include the presence of an M- Freeze on an account, or a TC 130 on CC ENMOD. Non Master File accounts present on IDRS can be identified using CC TXMOD, ENMOD and SUMRY with the definer "N" after the taxpayer identification number (TIN). When the indicator is present, the initiator of the manual refund must contact the Non Master File Function to request a transcript of all open NMF accounts. NMF accounts are now centralized in Cincinnati Submission Processing.

  2. Consider any outstanding balances or prior TC 840 when determining the amount of the manual refund which can be initiated. The refund amount may be reduced or not approved if there are NMF debts.

  3. If research indicates the taxpayer is eligible for all or a portion of the refund, attach the NMF transcript to the Form 3753, with an explanation of why the taxpayer qualifies for the full or reduced amount of the refund.

21.4.4.3.4  (10-01-2007)
Financial Management Services (FMS) Non-Tax Debts

  1. Financial Management Service (FMS) issues IRS refunds and maintains the Treasury Offset Program (TOP) for child support, non-tax federal agency debts, and state income tax offsets. See IRM 21.4.6.4.2.2, IMF TOP Offset, and IRM 21.4.6.4.2.3, BMF & Civil Penalty TOP Offset, for types of refunds eligible for offset.

  2. If the manual refund is eligible for TOP offset, initiators of manual refunds must inform taxpayers they are still subject to TOP offsets by FMS.

  3. The Bypass indicator can be used with Form 5792 to prevent a TOP offset in limited circumstances. Refer to IRM 21.4.6, Refund Offset, for more information.

  4. Only bypass indicators 0 or 3 should be used with Form 3753. See IRM 21.4.4.4.2, Preparation of the Form 3753, Manual Refund Posting Voucher.

21.4.4.3.5  (10-01-2013)
Approval From Other Functions

  1. Certain conditions on a module require coordination with other areas before a manual refund can be requested. All information received from these areas must be a part of your manual refund case documentation.

    • Obtain approval from the Scheme Development Center when an account shows no filing requirements.

    • Approval must be requested from the Technical Unit on large corporation (LCI) accounts.

    • An M- freeze indicates a Non Master File freeze. See IRM 21.4.4.3.3, Non Master File Research.

    • -Z or Z- freeze must be coordinated with Criminal Investigation, Scheme Development Center.

    • -U Freeze must be coordinated with the Erroneous Refund team in Accounting.

    • -V bankruptcy freeze. See IRM 21.5.6.4.44, -V Freeze.

    • -W litigation pending freeze. See IRM 21.5.6.4.46, -W Freeze.

    • -R Refund Hold freeze. A Refund Hold -R freeze can be identified by TC 570 with 999 in the Julian Date field of the Document Locator Number (DLN) (digits 6, 7, and 8). Refund Hold coordinators can be found on the Servicewide Electronic Research Program (SERP) at DELINQUENT RETURN REFUND HOLD COORDINATORS.

    • Obtain a credit verification print from Rejects/Error Resolution for unprocessed returns.

  2. Examination approval is required for the following account conditions:

    • Computer Condition Code (CCC) "X" for Form 1120, U.S. Corporation Income Tax Return, with a Tax Shelter Activity Code

    • Audit Information Management System (AIMS) indicator on the account with AIMS-CD "1" , "3" , or "5"

    • An AIMS SC is present on CC BMFOL

    • -E Freeze with TC 810 (with Code 1, 2, 3 or 4). See IRM 21.5.10.3.1, IDRS Research Exam Issues, and IRM 21.5.10.4.1.2, Examination Refund Hold Projects

    • -L Freeze and the account has a history item or activity code of "MAAS (MMDDYYYY)" . This indicates a quick assessment has been requested and that a new liability may be in the process of posting. If the assessment has not posted, contact Exam for the amount of the additional liability and satisfy the liability prior to issuing the manual refund

    • -L Freeze if AIMS Status Code is other than 00 through 06 or 08

21.4.4.4  (10-01-2013)
Preparation of Manual Refund Forms

  1. Manual refund is exception processing and has a greater margin for error. When possible, allow the system to generate the TC 846 refund. Releasing a hold on the account could result in a quicker refund to the taxpayer than issuing a manual refund. Do not issue a manual refund if:

    • A generated refund will be released within two (2) cycles, except under conditions outlined in IRM 21.4.4.2, Why Would A Manual Refund Be Needed?

    • The taxpayer indicated a direct deposit refund

    • The taxpayer requested a RAL or RAC, unless the taxpayer provides written proof of RAL/RAC denial


    In addition, extreme caution should be used when initiating manual refunds during a BMF accelerated cycle.

    Note:

    With the onset of CADE 2 (January 2012), all IMF refunds are in an accelerated process.

  2. Form 5792 and Form 3753 are posting documents used by Accounting to schedule and certify refunds. Accounting will reject any request that:

    1. Is not legible, or contains a strike through or white outs

    2. Is prepared on an obsolete form

    3. Does not have supporting documentation attached

    4. Authorized approval signature is missing, incorrect, or not complete

    5. Does not have an open control base indicating monitoring for duplicate refund conditions

      Note:

      See IRM 3.17.79.4.1, Case Review and Command Code REFAP (Refund Approval), and IRM 3.17.79.6.4.2(10), Certifying Automated Clearing House (ACH)/Direct Deposit Hardship Refunds, for additional reject reasons.

    All offices requesting manual refunds must have authorized signatures, Form 14031, Manual Refund Signature Authorization, on file with the Accounting Branch where the manual refund is submitted for processing per IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds.

  3. When an adjustment is input and a manual refund is being issued, a hold code (HC) 1, 2, or 4 must be input with the adjustment. If HCs are not input by the initiator, the Accounting Function will reject the request back to the initiator. Do not use HC 0 or 3 when inputting a credit adjustment and issuing a manual refund. HC 0 and 3 will not hold the credit and will allow a systemic refund or offset to generate.

    Note:

    If multiple adjustments are required, for example a sep-to-joint account, a HC 1, 2, or 4 needs to be used on all adjustments.

  4. If a credit transfer to satisfy an outstanding balance (OBL) is also required, in addition to the instructions in (3) above, a TC 570 must be input on the debit side of the credit transfer (the side the money is being moved from, and from which the manual refund is being issued). If a TC 570 is not input with the credit transfer to establish a -R freeze, the credit transfer will release the -K freeze (established by using HC 1, 2 or 4 on the adjustment) and a systemic refund (TC 846) will be generated.

  5. Processing Form 5792, Request for IDRS Generated Refund (IGR):

    1. Prepare the manual refund document using the Integrated Automation Technology (IAT) Manual Refund Tool. Refer to IRM 21.4.4.4.1, Preparation of Form 5792, IDRS Generated Refund,. Use of the IAT Manual Refund Tool is mandatory per IRM 21.2.2-2, Accounts Management Mandated IAT Tools.

    2. If a duplicate condition is found, the IAT Manual Refund Tool will not complete the form. You must resolve the duplicate condition before the tool will allow the completion of the form.

    3. Print the manual refund form, attach necessary documentation (refer to #6 below for a list of necessary documentation and the checklist in Exhibit 21.4.4-2), and forward to the technical lead or designated individual for review.

    4. The technical lead or designated individual will review the manual refund form, the attached documentation, and, using the IAT Erroneous Manual Refund Tool (EMT)/Case Monitoring Tool, review information on IDRS. The technical lead or designated individual must confirm that a manual refund is required and verify the IRM reference requiring the manual refund. Utilization of the tool by the technical lead or designated individual in this manner will create an active monitoring file for the team. This file is automatically stored in the "C" drive of the technical lead or designated individual.

    5. The technical lead or designated individual will then send the manual refund documentation forward to the manager to be reviewed/signed. Refer to IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds. When signing a manual refund form, blue ink is recommended but not required.

      Note:

      Managers and technical leads/designated individuals need to give priority attention to manual refunds. Manual refunds need to be reviewed and returned in time to meet the interest calculation date(s).

    6. The initiating employee or designated individual will input a CC NOREF with definer "P" on each IMF manual refund in order to prevent the issuance of a systemic refund. Refer to IRM 21.4.1.4.10, Refund Intercept CC NOREF with Definer "P" and refer to the CC NOREF job aid for instructions to complete the CC NOREF with definer "P" .

      Exception:

      If the manual refund is being issued from a module currently indicating a -V or -W freeze or contains an open TC 520 (open bankruptcy case), CC NOREF with definer "P" is not required. When the IAT error message referenced in paragraph "h" below is displayed, select the "Retry" button to bypass the IAT error message.

      Exception:

      If the manual refund is being issued from a module currently in a balance due status (before the manual refund is input), CC NOREF with definer "P" is not required. When the IAT error message referenced in paragraph "h" below is displayed, select the "Retry" button to bypass the IAT error message.

      Note:

      TAS employees must seek approval to input CC NOREF with definer "P" if the account is under control of an operation other than TAS.

    7. Refer to Exhibit 2.4.37-7, Input Format Command Code NOREFP for the line by line instructions for inputting CC NOREF with definer "P" .

      Note:

      Use the current cycle or, if a posting delay code is used on an adjustment, use the cycle the adjustment will post, an "F" must be entered after the cycle, and either "MISC" or "RFDL" are to be used as the category code.

    8. If CC NOREF is not detected by the IAT Manual Refund Tool an error message will appear in the IAT tool indicating "Please input CC NOREFP, following your area guidelines for input, before initiating RFUNDR" .

      Example:

      The CC NOREF is looking for a history item that indicates, "RPYYYYNNXX" where "YYYYNN" is the cycle and "XX" is the reason code (RC).

      Note:

      There are some very limited circumstances when a manual refund and a systemic refund are required on a module, such as some Injured Spouse claims. If a manual refund and a systemic refund are required, do not input CC NOREF with definer "P" . Select the "Retry" button to bypass the IAT error message.

    9. The manual refund documentation will be returned to the initiating employee or designated individual for the input of CC RFUND through the IAT Manual Refund Tool. Refer to IRM 21.4.4.4.1.1, IDRS Generated Refund CC "RFUND" .

    10. Input of CC RFUND through the IAT Manual Refund Tool will update the open control on IDRS using Status Code A and "IDRSREFUND" as the activity code.

    11. A copy of the Form 5792or a CC RFUND completed screen or a screen capture of CC RFUND is to be attached/kept with the CIS case. If the manual refund is rejected for any reason and the Form 5792 is changed or CC RFUND is input for a second time, a new copy of the Form 5792or a CC RFUND completed screen or a screen capture of CC RFUND is to be attached/kept with the CIS case. For detailed information on how to attach documents to a CIS case, refer to the applicable CIS CSR User Guide on SERP under the Local/Sites/Other tab and follow the links to the Correspondence Imaging System (CIS).

      Note:

      The CIS case should remain open until after the technical lead or designated individual has reviewed the case and the manager has signed the form in order to meet the requirements outlined in IRM 21.5.2.4.19, Verifying Complete Adjustments.

    12. All manual refund documents will be returned to the technical lead or designated individual after CC RFUND has been input.

    13. The technical lead or designated individual will check each manual refund to ensure that an active monitoring control has been established in the EMT/Case Monitoring Tool for the team.

    14. After the EMT/Case Monitoring Tool review indicated in #i above has performed, forward the completed manual refunds with all supporting documents to the appropriate campus Accounting Function by their designated daily cutoff time. Forms 5792 must be sent forward the same day the RFUND command is input. For sites that do not have an Accounting function, fax (or scan if you are at a ramp-down site) the Form 5792 to the appropriate site.

    15. There must be an open control on the module when the manual refund documentation is sent to the Accounting Function. The open control must indicate in the activity code the employee is monitoring the account for duplicate refund conditions.

      Example:

      "WT840" , "MONITOR" ,"IDRSREFUND" .

      The category code will generally be "MISC" , but if the case is still being worked or monitored for other reasons, the category code "MISC" is not mandated.

      Reminder:

      If the manual refund document was rejected for any reason, the control base may have been closed. Verify that an open control is on the module before sending the manual refund to the Accounting Function. The open control action may be input by any employee as long as there is an open control indicating the monitoring of the account for duplicate refund conditions.

    16. The lead or designated individual will monitor the account using the IAT EMT/Case Monitoring Tool following the instructions found in IRM 21.4.4.5.1, Monitoring Manual Refunds, to ensure a duplicate refund condition has not occurred. Refer to the IAT Manual Refund Job Aid for the duplicate refund conditions the EMT tool is monitoring for.

  6. Processing Form 3753, Manual Refund Posting Voucher:

    1. Prepare the manual refund document using the IAT Comprehensive Refund Suite (CRS) tool. Refer to IRM 21.4.4.4.2, Preparation of Form 3753, Manual Refund Posting Voucher. Use of the IAT CRS tool is mandatory per IRM 21.2.2-2, Accounts Management Mandated IAT Tools.

    2. If a duplicate condition is found, the IAT Manual Refund tool will not complete the form. You must resolve the duplicate condition before the tool will allow the completion of the form.

    3. Print the manual refund form, attach necessary documentation (refer to #7 below for a list of necessary documentation and the checklist in Exhibit 21.4.4-2), and forward to the technical lead or designated individual for review.

    4. The technical lead or designated individual will review the manual refund form, the attached documentation, and, using the IAT EMT/Case Monitoring Tool, review information on IDRS. The technical lead or designated individual must confirm that a manual refund is required and verify the IRM reference requiring the manual refund. Utilization of the tool by the technical lead or designated individual in this manner will create an active monitoring file for the team. This file is automatically stored in the "C" drive of the technical lead or designated individual.

    5. The technical lead or designated individual will check each manual refund to ensure that an active monitoring control has been established in the EMT/Case Monitoring Tool for the team.

    6. The technical lead or designated individual will then send the manual refund documentation forward to the manager to be reviewed/signed. Refer to IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds. When signing a manual refund form, blue ink is recommended by not required.

    7. There must be an open control on the module when the manual refund documentation is sent to the Accounting Function. The open control must indicate in the activity code the employee is monitoring the account for duplicate refund conditions.

      Example:

      "WT840" , "MONITOR" , "IDRSREFUND" .


      The category code will generally be "MISC" , but if the case is still being worked or monitored for other reasons, the category code "MISC" is not mandated.

      Reminder:

      If the manual refund document was rejected for any reason, the control base may have been closed. Verify that an open control is on the module before sending the manual refund to the Accounting Function. The open control action may be input by any employee as long as there is an open control indicating the monitoring of the account for duplicate refund conditions.

    8. The lead or designated individual will monitor the account using the IAT EMT/Case Monitoring Tool following the instructions found in IRM 21.4.4.5.1, Monitoring Manual Refunds, to ensure a duplicate refund condition has not occurred. Refer to the IAT Manual Refund Job Aid for the duplicate refund conditions the EMT tool is monitoring for.

  7. Before sending manual refunds to the Accounting Function, attach the following current IDRS or IAT prints:

    • CC TXMOD (shows open control and the TC 840 was input)

    • CC INOLES (shows debt indicator)

    • CC IMFOL/CC BMFOL (shows outstanding balances)

    • CC ENMOD (shows any pending name or address changes)

    • CC COMPA or Automated Computation Tool (ACT)/Decision Modeling Inc. (DMI) Report 490 (if interest was calculated)

    Sufficient documentation must also be attached to justify issuing the manual refund (for example: taxpayer correspondence, internal transcript, copy of Form 1040X, Form 1045, Form 4442, Form 8379 or the injured spouse worksheet if applicable, Form 1310, Form 843, the taxpayer's hardship documentation or a signed statement from the LTA approving the taxpayer's hardship refund request, etc.).

21.4.4.4.1  (10-01-2013)
Preparation of Form 5792, IDRS Generated Refund

  1. Form 5792 is used with CC RFUND to request an IDRS refund. This form cannot be used to issue refunds of $10 Million or more. Use the latest revision of Form 5792. Form 5792 will be prepared in triplicate. Two copies should be forwarded to the Accounting Function along with copies of the supporting documentation. The case file must be sent to the Accounting Function the same processing day CC RFUND is input.

    Note:

    Accounting will reject the Form 5792 if the document contains any alterations such as white out, strike through or correction tape. Refer to IRM 21.4.4.5.1, Monitoring Manual Refunds, for controlling and monitoring requirements.

  2. It is imperative that the following entries on Form 5792 Section 1 are legible to validate CC RFUND with CC REFAP to post the TC 840:

    • Box 6 TC 840 Amount

    • Box 14 First Name Line

    • Box 18 Street Address or P.O. Number

    • Box 19 City

    See IRM 3.17.79.4.2, RFUND/REFAP Mismatch.

  3. The following are line by line instructions for completing Form 5792 Section I - Account Information (All fields are mandatory unless noted otherwise):

    • Block 1, TIN and File Source - Input the TIN and File Source of the account from which the refund will be issued

    • Block 2, MFT Code - Input the Master File Tax (MFT) Code

    • Block 3, Tax Period - Input the tax period as YYYYMM.

      Exception:

      Period ending for MFT 52 is always 000000

    • Block 4, Plan Number - Input the plan/report number, applicable for MFT 46, 74 and 76

    • Block 5, Name Control - Input the four character name control

    • Block 6, TC 840 Amount - Input the TC 840 amount (overpayment, plus allowable interest)

    • Block 7, TC 770 Amount - Input the TC 770 amount (allowable interest). If no interest is being computed, enter "0" or ".00"

    • Block 8, Overpayment Amount - Input the overpayment amount: The amount being refunded not including any available credit interest

      Note:

      Consider previously assessed failure to file and failure to pay penalties, and debit interest that will be affected by the adjustment action. Any decrease in penalties or interest already paid must be included in the overpayment amount. In addition, unassessed accruals of penalty and/or interest may reduce the overpayment amount.

    • Block 9, Line No - Input the appropriate line number. See Exhibit 2.4.20-12, Description of Line Item Numbers

    • Block 10, Interest Indicator - Input the appropriate interest indicator code:
      "0" (zero) for no interest
      "N" for normal interest when interest is payable
      "R" for restricted interest

      Note:

      If interest is paid, interest "from" and interest "to" dates are required. See IRM 20.2, Interest, for interest computation.

      Note:

      If any portion of the overpayment in Block 7 is attributable to a Telephone Excise Tax Refund (TETR), see IRM 21.6.3.5.13, TETR Interest - General Information, for information on TETR interest computations.

    • Block 11, ULC Code - Input the Universal Location Code (ULC) (formerly the District Office code). (This block will generate when CC RFUND is input to IDRS) See Document 6209, Section 8C.10, for listing of ULCs

    • Block 12, Sequence Number - Will be input by the employee inputting CC RFUND to IDRS

    • Block 13, Block Series Number - Optional. Input if applicable. The block series may be 3, 4, 5, 6 or 9 and identifies why the refund is being issued. A 9 entered in this block must be accompanied by a bypass indicator (BPI) code of 1, 2, 5, 6, 8, or 9

    • Block 14–19, Entity and Address Information - Input the name and address of the payee. Use the ENMOD or INOLES information unless there is a name change, different address, or the refund is being issued to an injured spouse or third party

      Note:

      If the address on anyForm 5792 does not match the address on Master File, an explanation must be provided in the Remarks section of the form.


      For decedent accounts, do not address the first name line to a deceased taxpayer. Use the name of the person claiming the refund as the payee for refunds issued on decedent accounts. Refer to IRM 21.6.6.3.22.2, Processing Decedent Account Refunds, to determine the proper documentation for claiming a refund on a decedent account. The deceased taxpayer's name is shown on the second name line. The "Decd" in the second name line should be entered after the given name of the deceased taxpayer on a joint account or after the surname of the taxpayer on an individual account.

      Example:

      Person claiming the refund is: 1st name line 2nd name line
      Surviving spouse Jane Doe John Decd and Jane Doe
      Court Appointed or Personal Representative Jim Jones (A TITLE IS NOT REQUIRED. IF A TITLE IS USED IT MUST MATCH THE COURT DOCUMENTATION) Peggy Jones, Decd
      Claimant Shelly Smith Jack Doe, Decd

      Note:

      If a taxpayer cannot cash a refund check with "decd" indicated on the check, after the refund has been returned, reissue a manual refund using the 1st name line only. Document the reason for the second refund in the remarks section of the manual refund.

    • Block 20, Remarks - Annotate reason for the refund in the remarks field. Be specific. Include all pertinent information Accounting will need to verify the interest dates are correct and the credit is available for refund

    • Block 21, Initiating BOD - Check the box of the initiating Business Operating Division (BOD)

    • Block 22, Document Locator Number (DLN) - Input the controlling document locator number (DLN) on the module

    • Block 23, Bankruptcy Code Case - Check the box if the account has a bankruptcy indicator

    • Block 24, TC 130 - Check the box if the account contains a TC 130

  4. The following are line by line instructions for completing Form 5792 Section II - Manual Refund Authority - The items listed below are mandatory:

    • Box 1c, Handbook Reference - Input the IRM that confirms the reason for the manual refund

    • Box 3, IDRS and Master File Researched for Outstanding Balances and TC 130

    • Box 4, Check if a Debit Account Transcript is Attached

    • Box 6, Necessary Supporting Documents Attached - For example taxpayer correspondence, internal transcript, copy of Form 1040X, Form 1045, Form 4442, Form 8379, Injured Spouse worksheet if applicable, Form 1310, Form 843, etc. (this list is not all inclusive)

    • Box 7, Verify Refund Amount with Source Document Amount

    • Box 8, All items Above completed - Verify that all applicable items in Section I - Account Information, is completed

    • Box 11, Bypass Indicator - Confirm the BPI has been input on the adjustment if applicable

    • Box 13, Control Base Opened - If there is no control base the Accounting Function will reject the manual refund to the originator

    • Mark any other boxes in this section as applicable

  5. The following are the instructions for completing Form 5792 Section III - Interest Computation

    • The preparer must compute all interest for the TC 770 amount

    • Attach a copy of the CC COMPA print or ACT/DMI Report 490 to the Form 5792

    Note:

    A CC COMPA print is not needed when reissuing a returned refund check.

    Note:

    Large dollar manual refunds of $1 million or more that contain credit interest, must be reviewed and approved by the Technical Unit. See IRM 21.4.4.5 (2), Other Manual Refund Requirements.

  6. The following are line by line Instructions for completing Form 5792 Section IV - Manual Refund Approval - The items listed below are mandatory:

    • Block 1, No. of Employee Inputting RFUND via IDRS - Enter the IDRS number of the employee inputting CC RFUND

    • Block 2, Request Prepared By - Enter the Standard Employee Identifier (SEID) and name of the initiator of the request

    • Block 3, Phone Number - Enter the phone number of the initiator of the request

      Note:

      The employee inputting CC RFUND may or may not be the person requesting the manual refund.

    • Blocks 4, 4a, and 5, Approving Official - The Approving Official who signs the refund must be on the Authorized Signature List maintained by the Manual Refund Unit in the Campus Accounting Function. The official will sign in block 4, print their name and SEID in Block 4a and enter the date in Block 5.

      Note:

      Form 5792, must be reviewed to verify the manual refund is appropriate, proper IDRS research was completed, and the form was completed accurately. The Approving Official's signature certifies to the Accounting Function the form was reviewed and is correct.

21.4.4.4.1.1  (10-01-2012)
IDRS Generated Refund CC "RFUND"

  1. CC "RFUND" is used to generate the IDRS manual refund. This CC is valid for IMF, BMF, NMF, and Individual Retirement Account File (IRAF) accounts. It is limited to refunds from tax accounts and cannot be used for special Accounting Functions such as Excess Collections.

    Note:

    Those campus locations that no longer have an Accounting Function will input CC RFUND using CC CMODE to the campus indicated in Exhibit 21.4.4-3, Accounting Function - Manual Refund Team Contact Information. Refer to IRM 21.3.4.7.12.1(12), Command Codes Used, for an explanation of CC CMODE. When the RFUND is complete, remember to return to your home campus.

  2. The IDRS action is input from the information on the Form 5792. The Universal Location Code (formerly District Office Code) is displayed as "-" on the RFUND screen. In most cases the RFUND command will generate the appropriate code. Do not overlay the "-" unless prompted to do so.

  3. CC "RFUND" allows input of refunds for International Accounts by all users. For ULC "66" , "97" or "98" , the IDRS user will be prompted to overlay with the "dump DO" code for their campus. The "dump DO" codes are: Atlanta - 59, Andover - 06, Austin - 74, Brookhaven - 22, Cincinnati - 31, Fresno - 94, Kansas City - 36, Memphis - 62, Ogden - 91 and Philadelphia - 52.

  4. The information from Form 5792, Section IV, Block 2, must be entered in the RFUND field containing five "Rs" . This is the SEID of the originator of the Form 5792.

  5. The information from Form 5792, Section IV, Block 4a, must be entered in the RFUND field containing five "As" . This is the SEID of the Approving Official of the Form 5792.

  6. CC "RFUND" will open an IDRS control base if the literal "C" is overlaid with an "A" , "B" or "M" . If a control base other than your own already exists in a status other than B, you will receive an error message.

  7. The RFUND display will show pending address changes unless the address is a foreign address. In that case, the display will indicate a pending foreign address change, and you must research CC ENMOD for the correct address.

  8. For detailed information on input of CC "RFUND" , see IRM 2.4.20, Command Codes RFUND and REFAP.

21.4.4.4.2  (10-01-2013)
Preparation of the Form 3753, Manual Refund Posting Voucher

  1. Form 3753 is designed for non-IDRS input. This form must be used when refunds are $10 million or more. It must also be used if a direct deposit is necessary. (Only TAS can request a direct deposit manual refund for hardship conditions.) This form will also be used for all manual refunds refunded from an account that is not on IDRS.

  2. Due to FMS limitations, a manual refund in excess of $99,999,999.99 requires two or more Forms 3753.

  3. Form 3753 will be prepared in triplicate. Two copies should be forwarded to the Manual Refund Function along with copies of the supporting documentation. Accounting will reject the Form 3753 if the document contains any alterations such as white out, strike through or correction tape. See IRM 3.17.79.4.1, Case Review and Command Code REFAP (Refund Approval), for additional reject reasons.

  4. The following are line by line instructions for completing Form 3753 Section I - Account Information (All fields are mandatory unless noted otherwise):

    • The DLN block is completed by the Accounting Function

    • Complete the "From and Return to" box with the initiator's information

    • , Block 1, TIN - Enter TIN of the account from which the refund will be issued

    • Block 2, Tax Period - Enter the tax period in YYYYMM format

      Exception:

      MFT 52 is always 000000

    • Block 3, MFT Code - Enter the Master File Tax (MFT) code

    • Block 4, Plan Number - Enter the plan/report number, applicable for MFT 46, 74 and 76

    • Blocks 5 and 6, Schedule Number and Transaction Date - Will be completed by the Manual Refund Unit

    • Block 7, Name And Address, enter name and address of taxpayer as shown on Master File

      Note:

      For decedent accounts, enter the deceased taxpayer's name and address as shown on master file. The information of the person claiming the refund will be entered in block 11.

      Note:

      If the address on anyForm 3753 does not match the address on Master File, an explanation must be provided in the Remarks section of the form.

    • Block 8, Form Number - Enter the return form number

    • Block 9, DLN of Return - Enter the controlling DLN on the module

    • Block 10b, Amount of Refund Check - Enter amount of check. (TC 770 plus amount of overpayment)

    • Block 10d, Interest - Enter TC 770 with amount of allowable interest

    • Block 11, Make Check Payable To - Complete this block if the payee is other than the taxpayer or the refund is being issued to a different address. Differences must be explained in Section 2

      Note:

      For decedent accounts, do not address the first name line on the check to a deceased taxpayer. Use the name of the person claiming the refund as the payee for refunds issued on decedent accounts. Refer to IRM 21.6.6.3.22.2, Processing Decedent Account Refunds, to determine the proper documentation for claiming a refund on a decedent account. The deceased taxpayer's name should be entered as the second name line. The "Decd" in the second name line should be entered after the given name of the deceased taxpayer on a joint account or after the surname of the taxpayer on an individual account.

      Example:

      Person claiming the refund is: 1st name line 2nd name line
      Surviving spouse Jane Doe John Decd and Jane Doe
      Court Appointed or Personal Representative Jim Jones (A TITLE IS NOT REQUIRED. IF A TITLE IS USED IT MUST MATCH THE COURT DOCUMENTATION) Peggy Jones, Decd
      Claimant Shelly Smith Jack Black, Decd

      Note:

      If a taxpayer cannot cash a refund check with "decd" indicated on the check, after the refund has been returned, reissue a manual refund using the 1st name line only. Document the reason for the second refund in the remarks section of the manual refund.

    • Block 12a, Symbol and 12b, Amount - Used only when completing Form 3753 for Credit Card Chargeback, by the Manual Refund Unit or by other IRS Offices/Agencies that require funds to be withdrawn from specific Treasury Accounts

    • Block 13, Overpayment Amount - Enter amount of overpayment. The amount being refunded, less allowable interest

      Note:

      Consider previously assessed failure to file and failure to pay penalties, and debit interest that will be affected by the adjustment action. Any decrease in penalties or interest already paid must be included in the overpayment amount. In addition, unassessed accruals of penalty and/or interest may reduce the overpayment amount.

    • Block 14, Universal Location Code - Enter the ULC (formerly the district Office code). See Document 6209, Section 8C.10, for listing of ULCs

    • Block 15, Line Number - Input the appropriate line number. See Exhibit 2.4.20-12, Description of Line Item Numbers

  5. The following are line by line instructions for completing Form 3753 Section II - Manual Refund Authority (All fields are mandatory unless noted otherwise):

    • Box 1c, Handbook Reference - Input the IRM that confirms the reason for the manual refund

    • Box 2, Evidence of Credit Condition - Check at least one box

    • Box 3, Interest - Check one box

    • The following boxes in the next section must be marked:
      All items above completed
      Control Base Opened
      IDRS and Master File researched for outstanding balance and TC 130
      Necessary supporting documents attached
      Enter a BPI

    • Mark any other boxes in this section as applicable

  6. The following are instructions for completing Form 3753 Section III - Interest Computation:

    • The preparer must compute all interest for the TC 770 amount

    • Attach a copy of the CC COMPA print or ACT/DMI Report 490 to the Form 3753

      Note:

      See IRM 21.4.4.5, Other Manual Refund Requirements, for requirements on interest computations on manual refunds of $1 million or more. Refer to IRM 20.2, Interest, for methods of computing interest.

      Note:

      If any portion of the overpayment in Block 12 is attributable to a Telephone Excise Tax Refund (TETR), see IRM 21.6.3.5.13, TETR Interest - General Information, for information on TETR interest computations.

  7. The following are instructions for completing Form 3753 Section IV - Other Remarks (All fields are mandatory):

    • Annotate reason for the refund in the remarks field. Be specific. Include all pertinent information Accounting will need to verify the interest dates are correct and the credit is available for refund

    • Check the box of the initiating Business Operating Division (BOD)

  8. The following are instructions for completing Form 3753 Section V - Manual Refund Approval (All fields are mandatory):

    • Blocks 1 and 2 - The Approving Official must sign and print their Standard Employee Identifier (SEID), name and title. The Approving Official who signs the refund must be on the Authorized Signature List maintained by the Manual Refund Unit in the Campus Accounting Function.

      Note:

      Form 3753 must be reviewed to verify the manual refund is appropriate, proper IDRS research was completed, and the form was completed accurately. The Approving Official's signature certifies to the Accounting Function the form was reviewed and is correct.

    • Blocks 3, 4, and 5 - Enter the SEID, name, date, and phone number of the originator of the request

  9. Accounting will input a history item, control base and a TC 971 AC 664, when the document is processed.

  10. Initiators of manual refunds are required to maintain an open IDRS control base until the TC 840 posts, which may take up to four weeks. See IRM 21.4.4.5.1, Monitoring Manual Refunds, for controlling and monitoring requirements.

  11. When preparing Form 3753 to issue a hardship refund, see IRM 21.4.6.5.12, Hardship Manual Refunds, and IRM 21.4.6.5.12.1, Offset Bypass Refund (OBR).

21.4.4.5  (10-01-2013)
Other Manual Refund Requirements

  1. Any function initiating a manual refund for $1 million or more that contains credit interest, is required to perform an additional review (to be determined by that function) to verify the accuracy of the interest, and to identify and correct any errors.

  2. Manual refunds of $1 million or more, initiated by Accounts Management employees, and containing credit interest, are required to be reviewed by the Technical Unit. These procedures require the Form 3753 or Form 5792 to be forwarded to the Technical Unit for review. These requests must be received by 2:00 PM local time at the receiving campus in order to complete review. Requests received after 2:00 PM will be completed the following business day.

    1. For employees in sites that have a Technical Unit, the Technical Unit will verify the accuracy of the credit interest, identify and correct any errors and return the refund to the originator.

    2. For employees in sites that do not have a Technical Unit, fax Form 3753 or Form 5792, including a copy of the interest computation, to:
      For IMF modules:
      Philadelphia, W&I CAS:PAMC
      Attention: Adjustments Team 103 Manager
      Fax Number: 267–941–1030

      For BMF modules:
      Ogden, W&I CAS:OAMC
      Attention: Technical Interest Team 203 Manager
      Fax Number: 801-620-4456

    3. The Technical Team will verify the accuracy of the credit interest, identify and correct any errors and fax the approved Form 3753 or Form 5792 to the initiator the same day. Employees in these sites must attach a copy of the approved faxed Form 3753 or Form 5792 to be forwarded to Accounting. If any corrections were made, a new Form 3753 or Form 5792 will have to be completed.

    4. Each refund reviewed must have the "Interest Approved" signature and date. This signature should be placed above the Signature of the Approving Officer. Accounting will reject any manual refund requested by Accounts Management in excess of $1 million that has not been reviewed by the Technical Unit.

    5. A copy or fax of any corrections to the interest computation will also be referred to the manager of the initiator.

  3. If you are preparing a manual refund for $50 million or more, contact the Campus Accounting Function using the information in Exhibit 21.4.4-3 , Accounting Function - Manual Refund Team Contact Information, as soon as you know you will be requesting the refund.

    Note:

    Manual refunds may be delayed as a result of insufficient advance notification to Accounting / Treasury. See IRM 3.17.79.3.7, $50 Million or $500 Million or Over Refund Reports to Treasury, for additional information.

  4. When issuing a manual refund to a person or address other than that shown on Master File (CC ENMOD or INOLE), input a TC 971 AC 037 using the CC RFUND input date as the Transaction Date and enter the social security number (SSN) or employer identification number (EIN) of the entity receiving the refund. When the SSN/EIN of a third party is needed, the third party can only be solicited for this information through written correspondence because privacy rights must be given with the solicitation. Since Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, includes the required Privacy Rights provisions, it can be used to request the SSN/EIN of a third party.

    Exception:

    A TC 971 AC 037 is not required when the refund is being issued to a surviving spouse, an executor, or an appointed administrator of a decedent account. The executor or administrator must have provided a copy of their appointment.

  5. In addition to explaining why a different entity is necessary on Forms 5792 / 3753, indicate where the supporting documentation can be found (e.g. injured spouse, now separated, attached to nnn-nn-nnnn, 200812, TC 290).

  6. When issuing a refund on a decedent account and a Form 1310 is required, ensure Part I is completed.

    Exception:

    If the overpayment is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , do not request documentation.

  7. If an offset credit is being refunded, refer to IRM 21.4.6.4.1.1, Tax Offset Reversal, to determine when the offset must be reversed back to the original module instead of being refunded.

    1. If a reversal of offset credit is NOT required per IRM 21.4.6.4.1.1, Tax Offset Reversal, then notate in the remarks field of the Form 5792 or Form 3753 that a reversal of the TC 706 is not required.

      Example:

      TC 706 reversal not required

    2. If a reversal of offset credit IS required per IRM 21.4.6.4.1.1, Tax Offset Reversal, input a TC 570 with the reversal transaction to prevent an UPC 198, re-offset, or refund that would create an erroneous refund condition. Refer to IRM 21.5.8.4.6, TC 570 and Bypass Indicator, for more information on TC 570 and UNP 198.

    Note:

    When a TC 570 is input with the credit reversal, a TC 571 with Posting Delay Code 1 may be needed on the originating account to release the freeze set by the TC 570. This will release the freeze allowing the computer to generate a systemic refund after the credit reversal posts.

    Note:

    If credit interest was allowed on the offset, the credit interest must also be reversed with TC 772.

  8. Joint Committee Cases per IRC 6405: employees must provide the supporting documentation from the Chief of Staff. See IRM 4.36.4, Joint Committee Specialist Procedures.

21.4.4.5.1  (10-01-2013)
Monitoring Manual Refunds

  1. Anytime a manual refund is created within a team/group, the technical lead, employee, or a designated individual will monitor the account daily (weekly for BMF) using the EMT/Case Monitoring Tool to ensure a duplicate refund condition has not occurred. Use of the EMT/Case Monitoring Tool is mandatory for documenting the monitoring process. If there are no open manual refunds within the team (i.e., there are no cases within the active EMT file), the technical lead, employee, or designated individual is not required to run the tool daily.

    Exception:

    Manual refunds issued for Ultimate Vendor claims should not be included in monitoring manual refund procedures.

    Exception:

    Manual refunds issued for certain FICA claims should not be included in monitoring manual refund procedures, see the exception in IRM 21.4.4.1, What Is a Manual Refund?.

    Exception:

    Manual refunds issued by the Centralized Insolvency area are monitored using a different IAT tool and are not included in these monitoring manual refund procedures.


    During the monitoring process the account should be reviewed thoroughly to prevent erroneous refunds:

    If Then
    A TC 846 or a subsequent TC 840 appears after initiating the manual refund due to an input error and a duplicate erroneous refund situation is created For BMF Accounts:
    • Contact the area that input the adjustment and request that the adjustment be deleted (DQ'd through CC RVIEW or CC TERUP input), or

    • Input CC NOREF to stop the refund (TC 846). Refer to IRM 21.4.1.4.10, Refund Intercept CC NOREF with Definer "P" , and IRM 21.4.1.4.11, IRS Holds Automated Listing (HAL).

    For IMF Accounts:
    • Follow Erroneous Refund Procedures in IRM 21.4.5, Erroneous Refunds.

    A pending credit transfer without a TC 570 For BMF Accounts:
    • Contact the area that input the credit transfer and request that the credit transfer be deleted (DQ'd through CC RVIEW or CC TERUP input), or

    • Input CC NOREF to stop the refund (TC 846). Refer to IRM 21.4.1.4.10, Refund Intercept CC NOREF with Definer "P" , and IRM 21.4.1.4.11, IRS Holds Automated Listing (HAL).

    For IMF Accounts:
    • Follow Erroneous Refund Procedures in IRM 21.4.5, Erroneous Refunds.

    Unable to stop the refund, Contact the taxpayer to recover the duplicate refund. See IRM 21.4.5, Erroneous Refunds, for erroneous refund procedures.

    1. When the Accounting Function processes the Form 3753, Manual Refund Posting Voucher, they input a history item, a control base, and TC 971 AC 664 on the account.

    2. If a TC 971 AC 664 is on the account and a TC 840 is showing as rejected (RJ), unpostable (UNP), or resequencing, DO NOT prepare another manual refund. The refund has been issued.

  2. After the EMT tool recognizes the posting of the TC 840, the posting of an adjustment action if applicable, and has monitored the account for the posting of a TC 841 for two cycles (CC NOREFP), the following actions will be taken:

    1. The EMT/Case Monitoring Tool will remove the record from the active monitoring file and will place it in an archive file located on the technical lead's, employee's, or designated individual's "C" drive. The tool will notate "No E/R" when the file is archived indicating no erroneous refund was identified. This file is automatically maintained by the IAT EMT for 90 days.

      Note:

      If the TC 840 has posted but the adjustment transaction associated with the manual refund is still pending, the EMT will notate "adj pending" in EMT and continue monitoring for the adjustment to post. The EMT tool will not move the record from the active monitoring file to the archive file until the adjustment has posted.

      Caution:

      If a record does not get removed from the active file and placed in the archive file, it may be due to incorrect information loaded into the tool, e.g., refund amount or refund date. Once the information is correct on the EMT tool the case record will move to the archive file.

    2. Notate in EMT (in the history section) and in IDRS if an erroneous refund was issued. If an erroneous refund was issued, notate "E/R" and corrective actions taken to resolve the erroneous refund. A new control base assigned to an individual may be needed.

      Note:

      If a duplicate refund was issued, a Form 14165, Erroneous TC 840 / 846 Report, must be completed and sent to Accounting, see IRM 21.4.5.4.6.1, Form 14165, Erroneous TC 840/846 Report.

    3. Once the record has been removed from the active file and placed in the archive file, close the control base with control activity "840POSTED" , or "TC840PSTD" , or any activity that indicates the account was monitored to ensure a duplicate refund condition did not occur.

  3. The technical leads, employees, or designated individuals will save the EMT active case monitoring file each day (only when there are open manual refunds to review) after they have performed their reviews. The saved EMT active case monitoring file and the EMT archive case monitoring file will be shared with the reviewing official (generally the team manager or designated reviewer) each day in order to perform the review indicated in (4) below. If the files are shared through e-mail, encrypted secure e-mail is required..

    Note:

    Refer to the IAT website EMT Job Aid Section 5.1, Exporting Cases, for step-by-step instructions on saving and e-mailing the file to the reviewing official.

  4. Managerial review of the manual refund monitoring and documentation is required. Managers are to complete all actions below:

    Note:

    The person conducting managerial review cannot be the same person who performed the monitoring actions indicated above.

    1. Load the EMT active file and the EMT archive file (not at the same time) sent by the technical lead or designated individual through encrypted secure e-mail into the EMT.

      Note:

      Refer to the IAT website EMT Job Aid Section 5.2, Loading Cases, for step-by-step instructions.

    2. Verify that the technical lead or designated individual has completed the daily monitoring of manual refunds by initiating the EMT tool and reviewing for the monitored information. The history area for each module will indicate each day the tool was run and the SEID of the person who performed the monitoring.

    3. On a weekly basis, notate on the Manager's Monitoring Confirmation Log, whether the monitoring of manual refunds by the lead or designated individual was performed and sign the confirmation log. Keep the Manager's Monitoring Confirmation Log for a period of 90 days. It is up to the individual manager whether the confirmation log is kept electronically or in a print form (for review by upper management or outside auditors (e.g., GAO, TIGTA)).

      The EMT will store the monitoring for a period of 90 days.

21.4.4.6  (10-01-2003)
Other Manual Refund Programs

  1. The following sections provide information on programs which may not be readily available in other IRM chapters. Programs discussed here are Duplicate Refund Transcripts, Credit Card Chargebacks, and Photocopy Fee Refunds.

21.4.4.6.1  (03-29-2013)
Duplicate Refund Transcripts

  1. Duplicate Refund Transcripts "DUPREF" have been discontinued with the implementation of CADE2

21.4.4.6.2  (10-01-2007)
Photocopy Fee Refunds

  1. When a photocopy fee refund is returned to the Regional Finance Center (RFC) by the postal service as undeliverable, the RFC returns a cancellation credit for the check to the appropriate campus on SF 1098. A copy of the SF 1098, is sent to the Return and Income Verification Services (RAIVS) Unit. See IRM 3.5.20.5.1.12.4, Returned Photocopy Reimbursement, for further information.

  2. If a taxpayer returns a photocopy refund check, process as follows:

    1. Send the taxpayer a "C" letter acknowledging receipt of the check.

    2. If the check is less than one year old, send to the RFC for cancellation, annotate on the transmittal Form 3210 to redeposit to "20X0903 Account" .

    3. If the check is one year old or more, stamp the check "non negotiable" and leave it in the case file.

    4. Forward case file to the RAIVS Unit.

    5. When the credit is returned on SF 1098, a copy of the listing will be forwarded to the RAIVS unit for processing.

  3. If the taxpayer claims non-receipt of a photocopy refund, see IRM 3.5.20.5.1.12.4, Returned Photocopy Reimbursement.

21.4.4.6.3  (12-17-2009)
Credit Card Chargebacks

  1. Credit card payments are accepted through private industry credit card processors (also known as service providers). The credit card processor provides IRS the necessary payment information to update the taxpayer's Master File account. Accepted credit card payment processors are:

    • Official Payments Corporation

    • Link2Gov Corporation

    • FileYourTaxes.com

    • RBS WorldPay, Inc.

  2. If the payment is in error or the taxpayer did not authorize the payment, the payment processor can request a refund. ALL claims for credit card chargebacks are worked ONLY in the Ogden Accounts Management Campus, Taxpayer Relations Department.

  3. Treasury Regulation 301.6311-2(d)(2), makes returns of funds, or chargebacks, available for errors such as the following:

    • An incorrect amount posted to the taxpayer's account as a result of a computational error, numerical transposition, or similar mistake

    • An amount posted to the wrong taxpayer's account

    • A transaction posted to the taxpayer's account without the taxpayer's authorization

    • Similar types of errors that would be subject to the error resolution procedures of the Truth in Lending Act, the Electronic Fund Transfer Act, or similar provisions of state or local law, in ordinary commercial transactions

  4. Chargebacks can only be provided where the cardholder has established an erroneous or unauthorized charge, and not merely because the taxpayer has made an overpayment and is entitled to a refund. An overpaid account as a result of a credit card payment should refund to the taxpayer from the account as usual.

  5. Credit card chargebacks are only authorized for the entire amount of the payment. Partial credit card chargebacks are not permitted.

21.4.4.6.3.1  (04-09-2010)
How Is a Chargeback Initiated?

  1. If the taxpayer contacts the IRS to initiate a request for a credit card chargeback, refer the taxpayer to the credit card issuer's customer service number on the back of the card or on the billing statement. Taxpayers can also visit the Electronic Payment Options Home Page on IRS.gov for service provider information. Taxpayers should contact these companies to report problems such as unauthorized charges or concerns regarding payment errors not related to the tax liability. Generally, credit card payments cannot be cancelled. See IRM 21.2.1.48.2, Payment by Credit Card or Debit Card (General), for additional information regarding credit card payments.

  2. The credit card company must submit the claim within 150 days from date of payment. The request must contain the signature of one or more company authorized employees. If the payment is over 150 days old, the Lead Examiner must contact Headquarters for approval.

  3. The following procedures outlined in this section and IRM 21.4.4.6.3.2, How Is a Chargeback Request Processed?, are used exclusively by employees in the Ogden Accounts Management Campus, Taxpayer Relations Department, when working credit card chargeback claims submitted by credit card companies.

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  8. The company must submit the following required documentation with the form, Exhibit 21.4.4-1, Chargeback Request Form:

    • Copy of the dispute letter from the credit card holder or letter from credit card issuer describing the problem

    • Date the company received the dispute letter

    • Date sent to Internal Revenue Service

    • Card holder's name and address

    • Credit card number

    • Date of payment

    • Amount of payment

    • Credit card payment confirmation number

    • SSN or EIN of the account

    • History of company action taken to prove the taxpayer's dispute

    • Optional Form 8302, Direct Deposit of Tax Refund of $1 Million or More, for a refund of $10 million or more

  9. IRS employees may provide only the minimum return information necessary in order to resolve credit card payment errors. IRC 6103 (k)(9) provides that the Service may disclose return and return information to financial institutions and others to the extent the Service deems necessary for the administration of Section 6311. This exception to the general confidentiality accorded to returns and return information does not require a Power of Attorney or other written consent of the taxpayer. Example: The Service may disclose whether or not our records show the posting of a credit card payment to a tax account, if that information was the minimum necessary to resolve the issue.

21.4.4.6.3.2  (10-01-2011)
How Is a Chargeback Request Processed?

  1. The basic research requirements within IRM 21.4.4.3, What Research Is Required?, do not apply to chargeback cases. Once the company provides all the necessary verification, research the identified account for the erroneous payment. To identify a credit card payment on the account, the common transactions are:

    • TC 640, Advanced payment of determined deficiency, Form 1040

    • TC 660, 1040 Estimated Tax payment

    • TC 670, Subsequent payment Form 1040, Trust Fund Recovery Penalty (MFT 55), Form 940, Form 941, and Form 944

    • TC 670 or TC 640, Payment with Extension to File, Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

  2. Electronic payments will contain an EFT-Trace number. If the fourth position of the EFT-Trace number is a "6" , the payment was a credit card payment. Bulk Provider Number positions 8-9 identify which credit card processor to use. For more information, see IRM 3.17.277.5.3, EFT Number.

  3. Control the case when received. Use a unique case control numbering system. Associate the control number with source documentation (e.g. Form 3753, Form 2424, Form 3210, etc.). For the processing time frames of these cases, follow the guidelines in IRM 21.5.1, General Adjustments, and IRM 21.5.2, Adjustment Guidelines. The case will age in 45 days.

  4. Honor the request for the chargeback even if the payment is no longer available on the taxpayer's account.

  5. If the unauthorized payment is still on the taxpayer's account take the following actions:

    1. If payment will refund or offset, input a TC 570 on the account where the erroneous payment resides until the case can be resolved

    2. Prepare Form 2424, Account Adjustment Voucher, to correct the account

    3. Debit the taxpayer's account with the corresponding TC of the payment

    4. Credit Account 6910 with the TC of the payment

    5. Use date of the payment as the transaction date for both the debit and credit

    6. Notate "chargeback for credit card payment" in the comments area

  6. If the taxpayer received a refund due to the unauthorized credit card overpayment on the account, follow IRM 21.4.5.5, Account Actions for Category D Erroneous Refunds. If the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , refer the case to the Refund Crime Unit using normal referral procedures.

  7. If the money is offset to another account, complete the credit transfer back to the original account module, and adjust the account as outlined above.

  8. To refund the payment to the card processor, complete Form 3753 as follows:

    1. Section l, Block 1, enter the company TIN

    2. Block 6, enter complete name and address of company

    3. Block 10, enter "same as Block 6" and include Routing Transit Number and DAN

    4. Block 12a. enter 20X1807 as the symbol and 12b, enter the chargeback amount

    5. Block 13, enter the Universal Location Code (formerly the District Office code). See Document 6209, Section 8C.10, for a listing of ULCs.

    6. Section ll, Block 1, check "other" and notate "Chargeback, IRM 21.4.4"

    7. Block 2, check "other" and notate "credit card chargeback"

    8. Block 3, check "not allowable"

    9. Check all blocks as appropriate

    10. Section lII, block out entire section. It is not applicable

    11. Section IV, enter ACH deposit and credit card company account number

    12. Section V, complete all blocks

  9. Prepare Form 3210, Document Transmittal, as follows:

    1. In the remarks block enter Company name and TIN and note "chargeback of credit card payment"

    2. In the quantity block enter the document count

    3. In the "code" or "type" block enter 3753 in the first block only

    4. Enter each case separately using company TIN and money amounts for each individual case

    5. Total amount for the Form 3210 and enter the amount in the Remarks box at the top of the document

    6. Enter complete information in the from box

    7. Releasing Official must sign the Form 3210

  10. Route or hand carry the chargeback case to the Manual Refund Function. Ensure the case is complete and all requirements are fulfilled.

  11. If any of the required documentation is missing in the request from the card processor, call or write the credit card company requesting the missing information. See IRM 21.4.4.6.3.1, How Is a Chargeback Initiated?

    1. Request the information be supplied within 10 days

    2. Allow 15 days for response. If no response within 15 days, follow-up with a second request to the company

    3. Allow another 15 days for response to second request

    4. If no response to the second request, do not honor the chargeback request

    5. Advise company of the Service's denial and the reason(s) for the denial

    6. Do not issue a Claim Disallowance Letter

    7. Secure managerial approval and close the case

Exhibit 21.4.4-1 
CHARGEBACK REQUEST FORM

CHARGEBACK FOR UNAUTHORIZED OR ERRONEOUS CREDIT CARD PAYMENT
Copy of the dispute letter attached: ____Yes ____No
(Dispute letter must contain the name and address of the cardholder)
Date of the dispute letter:
Date received:
Date sent to Internal Revenue Service:
PAYMENT INFORMATION
Date of the payment:
Amount of the payment:
Credit Card Number used in the transaction:
Credit Card Confirmation Number:
Social Security Number:
(payment was applied )
History/Research taken to substantiate the claim:

Under penalties of perjury, I declare that I have examined this form and accompanying statements, and to the best of my knowledge and belief, they are true, correct, and accurately represent the amount of Chargeback, caused by either erroneous or unauthorized use of the credit card listed on this form and applied to the identified taxpayer's account.
SIGNATURE OF COMPANY OFFICIAL:DATE:____________
Title:
ELECTRONIC FUNDS TRANSFER (EFT) REPAYMENT REQUEST
EFT Requested: ____Yes ____No
If yes is checked, complete the bank account information:
Routing and Transit Number:
Bank Account Number:
Check Attachments:
Dispute letter (Required)
Form 8302, Electronic Deposit of Tax Refund of $1 Million or More
(Optional only required when the chargeback is for $1 million or more.)
Other, Please identify

Exhibit 21.4.4-2 
MANUAL REFUND CHECKLISTS

Thorough research is required on all manual refunds prior to issuance.

  1. The table below summarizes the basic research required for all manual refunds (those issued on Form 5792, Request for IDRS Generated Refund (IGR), and Form 3753, Manual Refund Posting Voucher):

    IDRS Research Required on All Manual Refunds.
    Verify:
    • TIN (SSN/EIN)

    • MFT and Tax Period

    • Payee name and address

    • Debt indicators (TOP offset), XREF TINs, TC 130 Indicator


    Attach a CC INOLES print to the manual refund form (Form 5792 or Form 3753).
    • Input TC 971 AC 037 as applicable

      Note:

      A manual refund cannot be issued to a POA

    • Verify RSED open/expired

    • Research freeze codes

    • Review for any pending TCs that would release a TC 570, freeze codes, or the K- freeze set by a HC 1, 2, or 4.

    Verify outstanding balances (OBLs); research all related accounts (IMF, BMF, NMF) for OBLs using the following CCs:
    • CC SUMRY

    • CC TXMOD

    • CC IMFOLI/CC BMFOLI

    • CC IMFOLT/CC BMFOLT

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ attach an IDRS print.

    Research CC TXMOD for TC 971 AC 664, which indicates a manual refund has been scheduled/issued by the Accounting Function using Form 3753, Manual Refund Posting Voucher.
    Review/verify "O" (letter O) coded returns - See Document 6209, IMF Computer Condition Codes. "O" code identifies a pre-settlement manual refund was paid.
    Attach offset bypass refund (OBR) or hardship verification, if applicable.
    Research CC FFINQ - Requests IMF from the Fact of Filing information file.
    Review manual refunds over $1 Million - Technical unit is required to review credit interest.
    Resolve other open controls and receive approval from other functions (if applicable) to process the manual refund.
    Input/review for TC 291, TC 295, TC 299, TC 766 with a HC 1, 2, or 4. Input TC 570 as applicable.

  2. A review of the sections of Form 5792, Request for IDRS Generated Refund (IGR) is shown below. See IRM 21.4.4.4.1, Preparation of Form 5792, IDRS Generated Refund, for additional information.

    Note:

    The use of the IAT Manual Refund Tool is mandatory for preparation of manual refund forms and CC RFUNDR input per IRM 2.2-2.

    Form 5792 Checklist
    Verify the following information in Section I (Account information) of the Form 5792:
    • Box 6, TC 840 amount (math verify that box 7 + box 8 = box 6)

    • Box 9, Line Number (see IRM 2.4.20, Command Codes RFUND and REFAP)

    • Box 13, Blocking Series (as applicable)

    • Box 14, First Name Line

    • Box 18, Street address or P.O. number

    • Box 19, City, State, and Zip code

    • Box 20, Remarks (to explain the reason for the manual refund)

    • Box 22, DLN of return

    Verify the following information in Section II (Manual Refund Authority) of the Form 5792:
    • Box 1, c, Handbook Reference - Input the IRM that confirms the reason for the manual refund

    • Box 3, IDRS and Master File researched for outstanding balances and TC 130

    • Box 4, Transcript of debit accounts attached

    • Box 5, Evidence of Credit Condition (mark appropriate box)

    • Box 6, Necessary supporting documents attached - For example, taxpayer correspondence, internal transcript, copy of Form 1040X, Form 1045, Form 4442, Form 8379, injured spouse worksheet, Form 1310, Form 843, etc. (this list is not all inclusive)

    • Box 7, Verify refund amount with source document amount

    • Box 8, All items above completed - Verify that all applicable items in Section I - Account Information are completed

    • Box 11, By Pass Indicator (BPI)- Confirm the BPI has been input on the adjustment if applicable. See IRM 21.4.6, Refund Offset

    • Box 13, Control Base Opened - If there is no control base, the Accounting Function will reject the manual refund to the originator

    Verify the following information in Section III (Interest Computation) of the Form 5792:
    • Input the interest "From" and "To" date(s) and the interest amount

    Verify the following information in Section IV (Manual Refund Approval) of the Form 5792:
    • Box 1, Number of the employee inputting REFUND via IDRS - Must match the information shown in IDRS or the manual refund will be rejected

    • Box 2, Request prepared by (SEID and name) - Must match the SEID shown in IDRS or the manual refund will be rejected

    • Box 3 Phone number - Must be a valid phone number for the area. Cannot be a 1-800 number

    • Box 4, Signature of approving official - The signature must match the signature found on Form 14031, Manual Refund Signature Authorization kept in the Accounting Function

    • Box 4a, SEID and name of approving official - The name and SEID must match the name and SEID found on Form 14031, kept in the Accounting Function

    • Box 5, Date

  3. A review of the sections of Form 3753, Manual Refund Posting Voucher is shown below. See IRM 21.4.4.4.2, Preparation of the Form 3753, Manual Refund Posting Voucher, for additional information.

    Note:

    The use of the IAT Manual Refund Tool is mandatory for preparation of manual refund forms per IRM 2.2-2

    Form 3753 Checklist
    Verify the following information in Section I (Account Information) of the Form 3753:
    • Box 7, Name and address

    • Box 9, DLN of return

    • Box 10b, TC 840 amount (math verify that box 13 + box 10d = box 10b)

    • Box 11, Make check payable to - If the payee is other than the taxpayer or if the refund is being issued to a different address

    • Box 14, Universal Location Code (ULC)

    • Box 15, Line number (see IRM 2.4.20, Command Codes RFUND and REFAP)

    Verify the following information in Section II (Manual Refund Authority) of the Form 3753:
    • Box 1c, Handbook reference - Input the IRM that confirms the reason for the manual refund

    • Box 2, Evidence of credit condition (mark appropriate box)

    • Box 3, Interest (mark appropriate box)


    Verify the following information in the open section of Section II:
    • All items above completed - Verify that all applicable items in Section I - Account Information are completed

    • Control base opened - If there is no control base, the accounting function will reject the manual refund to the originator

    • IDRS and Master File researched for outstanding balances and TC 130

    • Transcript of debit accounts attached

    • Necessary supporting documents attached - For example: taxpayer correspondence, internal transcript, copy of Form 1040X, Form 1045, Form 4442, Form 8379, injured spouse worksheet, Form 1310, Form 843, etc. (this list is not all inclusive)

    • Verify refund amount with source document amount

    • By Pass Indicator - Confirm the BPI has been input on the adjustment if applicable. See IRM 21.4.6, Refund Offset

    Verify the following information in Section III (Interest Computation) of the Form 5792:
    • Input the interest "From" and "To" date(s) and the interest amount

    Verify the following information in Section IV (Other Remarks) of the Form 3753:
    • Remarks (to explain the reason for the manual refund)

    • Initiating BOD. (mark appropriate box)

    Verify the following information in Section V (Manual Refund Approval) of the Form 3753:
    • Box 1, Signature of approving official - The signature must match the signature found on Form 14031, Manual Refund Signature Authorization kept in the accounting function

    • Box 2, SEID and name of approving official - The name and SEID must match the name and SEID found on Form 14031

    • Box 3, SEID and name of originator

    • Box 4, Date

    • Box 5, Phone Number - Must be a valid phone number for the area. Cannot be a 1-800 number

Exhibit 21.4.4-3 
Accounting Function - Manual Refund Team Contact Information

Manual Refund Team Contact Information
Austin Submission Processing Center
Data Control Team
  • 3651 S IH HWY 35
    M/S 6263
    Austin, TX 78741

  • T# 512–460–7660

  • Fax # 512–460–7640

Cincinnati Submission Processing Center
Manual Refund Team
  • 201 W Rivercenter Blvd
    M/S 2107
    Covington, KY 41011

  • T# 859–669–5329

  • Fax # 859–669–5619

Fresno Submission Processing Center
Payment Tracer/Manual Refund/Erroneous Refund Team
  • 5045 E Butler Ave.
    M/S 37103
    Fresno, CA 93888

  • T# 559–454–6194

  • Fax #559–454–6317

Kansas City Submission Processing Center
Manual/Erroneous Refund Team
  • 333 W. Pershing Road
    M/S P-6, 6250
    Kansas City, MO 64108

  • T# 816–325–3740

  • Fax # 816–292–6206

Ogden Submission Processing Center
Refund Disbursement Team
  • P.O. Box 9941
    M/S 6250
    Ogden, UT 84409

  • T# 801–620–7373 or 801-620-6991

  • Fax # 801–620–7905 or 801–620–7609

Andover manual refund cases are serviced by the Fresno Campus. See the information above for the Fresno Submission Processing Center.
Atlanta manual refund cases are serviced by the Kansas City Campus. See the information above for the Kansas City Submission Processing Center Brookhaven manual refund cases are serviced by the Cincinnati Campus. See the information above for the Cincinnati Submission Processing Center.
Memphis manual refund cases are serviced by the Cincinnati Campus. See the information above for the Cincinnati Submission Processing Center Philadelphia manual refund cases are serviced by the Ogden Campus. See the information above for the Ogden Submission Processing Center.

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