21.5.7  Payment Tracers (Cont. 1)

21.5.7.4 
Resolving Missing Payments Procedures

21.5.7.4.6 
Processing Complex Payment Tracers

21.5.7.4.6.9  (10-01-2013)
Payment Not Located

  1. If you do not have a copy of the cancelled check, obtain an image of the remittance from RTR or request a copy of both sides of the remittance from the taxpayer as applicable. For additional information see IRM 21.5.7.4.7.1, ISRP/RRPS, or see IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System.

  2. Check CC IMFOL using definer code "Q" for all resequenced transactions, which includes resequenced with RC 24 (TC 610 remittance with return). Refer to IRM 21.5.7.4.7.15.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer, in the second box of the If/Then chart for additional information.

    If Then
    Missing payment will not fully pay the balance due
    1. Request balance due from taxpayer.

    2. Establish an installment agreement per IRM 21.3.12, Accounts Management Balance Due Telephone Contacts, or IRM 5.19.1, Balance Due.

    Missing payment will fully pay the balance Input CC STAUP or TC 470 (no Closing Code).
    The missing payment is an FTD Follow procedures in IRM 21.5.7.3.3, IDRS Research for Federal Tax Deposit (FTDs), and IRM 21.5.7.4.7.14, Federal Tax Deposits (FTD).
    The copy of the remittance was provided and you cannot locate the payment, complete all necessary research
    1. Prepare Form 4446, Payment Tracer Research Record, and attach copy of the cancelled check and copies of all research documents.

    2. If applicable, send appropriate "C" letter.

    3. Forward to HPTF function in the campus that processed the payment.

21.5.7.4.6.10  (10-01-2007)
Absolute Proof of Payment

  1. Absolute proof of payment is conclusive evidence that IRS received a payment, e.g.:

    • Cash receipts (Form 809 or IRS National Cash Register (NCR) receipts)

    • Cancelled checks

    • Negotiated money orders

    • Negotiated cashiers checks

    • Narrative descriptions of endorsements by banks, money order vendors, and IRS employees (e.g., Revenue Officers)

  2. NCR receipts must identify the Register Number, time, date, office location and type and amount of tax paid.

  3. Absolute proof a Federal Tax Deposit was made is the verification or acknowledgment of a payment submitted to a commercial or Federal Reserve Bank. This proof can be:

    1. A cancelled check for the amount of the payment made payable to and negotiated by a commercial depository or a Federal Reserve Bank. Have the bank verify the credit was deposited in the Treasury Tax Loan Account (TT&L).

    2. A commercial bank or federal tax deposit receipt for the amount of payment.

    3. A photocopy of the FTD coupon received in the FTD processing campus.

    4. Transmittal showing the deposit in question was received and processed without adjustment. If an adjustment was made, verify the deposit was not included.

  4. When a lien is on the account (TC 582, lien indicator) and the payment will fully satisfy all outstanding liabilities, request a manual lien release. See IRM 5.12.3.3.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.

21.5.7.4.7  (10-01-2003)
Payment Methods/Systems

  1. The following methods/systems are used for making/processing payments:

    • Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System(RRPS)

    • Manual Deposits

    • Field Office Remittances

    • Lockbox Payments

    • Installment Agreement User Fee Lockbox Payments

    • Justice Department Lockbox Receipts

    • Cashier’s Check

    • Money Orders

    • Truncated checks

    • Cash payments

    • ANMF payments

    • Foreign Remittances

    • Free items

    • Federal Tax Deposits (FTD) payments

    • Electronic Federal Tax Payment System (EFTPS) payments

    • Electronic Funds Withdrawal (Direct Debit) and Credit Card

    • Direct Debit Installment Agreements

    • Lloyds of London taxpayers

    • State Income Tax Levy Program (SITLP)

21.5.7.4.7.1  (10-01-2012)
Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System(RRPS)

  1. The Integrated Submission and Remittance Processing (ISRP) System converts paper tax and information documents, and remittances received by IRS into perfected electronic records of taxpayer data. When a tax document is received, it is opened and sorted by form type (e.g., Form 1040, Form 1040A, etc.). Remittances with their accompanying documentation are pre-sorted into groups called batches. Each batch is uniquely identified by a 12 digit Remittance Processing System Identification (RPSID) number. This number always begins with "00" , followed by 6 digits, followed by "0000." This system will capture, store, retrieve, archive (vouchers and check images) and route source data to downstream processing activities which subsequently post to the taxpayer's account on Master File.

    Note:

    You will not be able to research ISRP payments through the ISRP system once the information is available through RTR.

  2. The information stored in the archive system includes the following:

    1. The actual front image of a paper voucher or an image created from data that an ISRP operator entered when no voucher was present.

    2. Actual images of both sides of the remittance. The file on the back of the remittance contains the endorsement and encoding information.

    3. Data used to research for each voucher and related remittance, such as the TIN, DLN and date of deposit.

    4. The archive system permits the retrieval of document images and data for up to 5 years after the information has been processed through the remittance system.

      Note:

      Document 6209 Section 4.13, Document Locator Number - Residual Remittance Processing System (RRPA), provides exhibits of the RRPS Electronic Payment Voucher, information about the endorsement data, and the IRS audit trail.

  3. When the remittance (checks, money orders, etc.) is processed through RRPS, the remittance amount is encoded at the bottom right front, the IRS audit trail is printed on the back of the remittance to the right of the RPSID number. The system also stamps the U.S. Treasury on the back of the remittance.

  4. In order to resolve missing payments, you may need to research RTR. If RTR is not available to your area you may need to research the ISRP Archival Retrieval System. Fax Form 11357, ISRP Image Retrieval Request, to the campus that processed the payment. See the ISRP Archive Contact List at http://serp.enterprise.irs.gov/databases/who-where.dr/isrp_archive_list.htm, located on SERP under the Who/Where tab, for a list of contacts for each campus.

    Exception:


    • Route payments processed at Memphis to the Cincinnati Campus.

    • Route payments processed at Philadelphia to the Ogden Campus.

    • Route payments processed at Andover to the Fresno Campus.

    • Route payments processed at Atlanta to the Kansas City Campus.

    • All functions other than Brookhaven Accounts Management (AM) and Cincinnati Accounting function, will route requests for ISRP payments processed at Brookhaven to the Cincinnati campus. Brookhaven AM and Cincinnati Accounting functions will service their own requests.

  5. This process will scan "scannable" vouchers and checks and assign a DLN. Returns with payments will no longer have a DLN that matches the payment DLN. The inflated Julian date associated with the deposit item previously processed through RPS will no longer appear on the taxpayer's account.

  6. The ISRP RRPS audit trail is different from the RPS audit trail. It will reflect the following:

    • The tax period and transaction date are on the second line

    • The identifying information for a payment other than Master File, such as a photocopy payment, will also be displayed on the second line. The symbols will be the last 7 to 9 digits. For example, 20X0903. See IRM 3.8.44, Campus Deposit Activity, for additional information

    • If the payment is a multiple or split payment, an M or S will appear between the tax period and the transaction date

  7. The following is a comparison of the RPS/ISRP DLN:

    DLN Element RPS ISRP
    File Location Code Applicable SC Code Applicable SC Code
    Tax Class Various Various
    Document Code All Codes 17 - subsequent payment
    19 - overflow
    70 - TC 610 tax return payment
    76 - overflow
    20 - TC 430
    Julian Date Date work batched Deposit date
    Block Series Per IRM 3.5.61.3.75, Integrated Submission and Remittance Processing System (ISRP). 000 - 999
    Serial Number 00 - 99 RPS Number 00 - 99 System Assigns
    Year Digit Year processed RPS Number Year Processed System Assigns
  8. All Payment Tracer procedures, outlined in IRM 21.5.7, Payment Tracers, including those found in IRM 21.5.7.3, Missing Payments Research, should be followed for ISRP payments prior to initiating the following action:

    1. You have a copy of the front and back of the cancelled remittance, and cannot find the payment through preliminary research, complete Form 4446, enter the appropriate CC STAUP hold or TC 470 to hold the notices. The case must be transferred to Hardcore Payment Tracer Function (HPTF). Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, if appropriate. Follow procedures in IRM 21.3.3.4.2.1, Use of 86C Letter- Referring Taxpayer Inquiry/Forms to Another Office, to determine when it is necessary to notify the taxpayer.

    2. If you have a "slipped block" request the five documents before and after your payment if RTR is not available. If more than three payments have been misapplied, prepare Form 4446, Payment Tracer Research Record, and when appropriate, send Letter 86C. Enter the appropriate CC STAUP hold or TC 470 to hold the notices. Transfer the case to HPTF. If three payments or less have been misapplied, you should resolve the issue and have the payments applied to the correct accounts.

21.5.7.4.7.2  (10-01-2003)
Manual Deposits

  1. Deposit items that are not processed through ISRP must be processed through Manual Deposit, Lockbox or IDRS. These include unidentified deposits and re-deposits of dishonored checks. Receipt and Control will prepare a payment posting voucher whenever a source document is not available and the remittance cannot be processed through Residual Remittance Processing System (RRPS).

  2. Remittances processed manually are underlined with a rocker symbol in green pencil, "green rockered" on the return. Encoder information is on the back of the remittance.

  3. Remittances are applied instantaneously when applied to the taxpayer's account through IDRS. Receipt and Control will prepare source documents for IDRS input.

  4. The National Cash Register (NCR) encoder is used for encoding and endorsing remittances not processed through Residual Remittance Processing System (RRPS). The DLN is not printed on the back of the check, but a sequence number is. You may use this sequence number to locate the encode tape for the DLN. Remittances will be endorsed with the agency location code of the office receiving the credit. See Exhibit 3.8.44-7, Agency Location Codes (ALC), which provides information on agency location codes.

21.5.7.4.7.3  (10-01-2003)
Field Office Remittances

  1. Field Office Payment Processing involves all payments received from the field office employees. Field offices use overnight services to transship the tax receipts to their designated Submission Processing Center. See IRM 3.8.47.5.4.1, Submission Processing Center/Field Office Payment Processing Alignment for Form 809 Receipts and Other Payments. Cash remittances must be converted to check or money order before sending for processing.

  2. Field office employees issue Form 809 when they receive cash. If payment is by check, money order, etc., a receipt is issued to the taxpayer.

  3. When the Field office employee issues Form 809, it becomes a posting document. The only exception is when the remittance is submitted with an original return. Then, the original return becomes the posting document.

  4. If the payment cannot be located after all preliminary research has been completed, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) at the campus that processed the payment, or processed the most recent payments.

21.5.7.4.7.4  (10-01-2013)
Lockbox Payments

  1. The Lockbox operation involves the processing of tax payments by commercial banks. This method of processing payments accelerates the handling and deposit of funds received and is forwarded to Treasury.

  2. Lockbox banks process payments for the following IMF products:

    • CP 521, Installment Agreement Reminder Notice

    • CP 523, Installment Agreement Default Notice

    • Form 433–D, Installment Agreements

    • Form 1040, Form 1040A, and Form 1040EZ, U.S. Individual Income Tax Return

    • Form 1040, International, will now be processed for Austin SPC

    • Form 1040–ES, Estimated Tax for Individuals

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040-PR, U.S. Self-Employment Tax Return (Puerto Rico)

    • Form 1040-SS, U.S. Self-Employment Tax Return (Virgin Islands, Guam, American Samoa, Northern Marianna Islands)

    • Form 1040X, Amended U.S. Individual Income Tax Return

    • Form 2159, Payroll Deduction Agreements

    • Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

    • Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax

    • Form 9465, Installment Agreement Request

    • Letter 3856/Letter 3856-A, Manually Monitored Installment Agreements

    • Other installment payments

  3. Lockbox banks process payments for the following BMF products:

    • CP 521, Installment Agreement Reminder Notice

    • CP 523, Installment Agreement Default Notice

    • Form 433-D, Installment Agreements

    • Form 940/Form 940-EZ, Employer’s Annual Federal Unemployment (FUTA) Tax Return

    • Form 941, Employer’s Quarterly Federal Tax Return

    • Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees

    • Form 944,Employer’s Annual Federal Tax Return

    • Form 945, Annual Return of Withheld Federal Income Tax

    • Form 1041ES, Estimated Tax for Estates and Trusts

    • Form 2159, Payroll Deduction Agreement

    • Form 2290, Heavy Highway Vehicle Use Tax Return

    • Form 9465, Installment Agreement Request

    • Letter 3856/Letter 3856-A, Manually Monitored Installment Agreements

    • Other installment payments

  4. Taxpayers mail remittances to the IRS at designated post office boxes for each form type. These addresses can be found in the instructions for the forms listed in (2) and (3) above.

  5. The bank encodes and endorses the remittance. The DLN, TIN, name control, received date, and tax period are virtually printed on the back of the check.

  6. The lockbox system generates an Optical Character Recognition (OCR) Remittance Register, similar to the 813 Remittance Register.

  7. The DLN consists of a file location code (FLC), (the first two digits in the DLN), unique to lockbox processing. Use this number with the bank endorsement to determine the correct campus to research.

  8. All lockbox banks image checks, money orders, and vouchers can be viewed via RTR.

    1. If you need a copy of a check and the payment DLN has a list year of 7 (last digit of the DLN) or subsequent, research RTR to retrieve the check image.

    2. If you need a copy of a check and the payment DLN has a list year of 6 (last digit of the DLN) or prior (all payments made prior to 2006), contact the appropriate Campus Lockbox Coordinator from http://serp.enterprise.irs.gov/databases/who-where.dr/addresses.dr/lockbox/lockbox_coordinators.htm as outlined in SERP under the "Who/Where" tab under Lockbox Information and click on "Lockbox Coordinator Listing" .

      Note:

      The Lockbox Coordinators will contact the lockbox banks when necessary.

21.5.7.4.7.5  (10-01-2013)
Installment Agreement User Fee Lockbox Payments

  1. Taxpayers may request and obtain permission to pay a tax liability through installment payments even before a tax liability has been determined. All payments received for installment agreements will be processed as a TC 670 to the taxpayer's account. An automated sweep will occur at the IRS to apply user fees as appropriate.

  2. If a user fee payment cannot be located, transfer/reassign the case to the Compliance Services Collection Operation (CSCO), at the campus that processed the payment.

  3. CSCO will research the following User Fee Reports in Accounting:

    • User Fee Block Detail Listing - Lists payment, payment date, and Batch/Block Number

    • User Fee Batch/Block Totals Report - Lists block of payments for each date, Batch/Block Number, account number, number of items, and Batch/Block Amount

    • User Fee Split Balance Report - Lists payments split between User Fees and Tax payments, Sequence Number, TIN, Remittance Amount, User Fee Amount, and Revenue amount (payment other than user fee amounts)

  4. User fees related to installment agreements are on IDRS under MFT 13 or 55. MFT 13 or 55 is created when the CP 521 is generated. A TC 971 AC 82 or 83 will be sent to Master File to establish the module. Unlike other MFT 13 or 55 accounts, there will be no reference numbers. You must use CFOL command codes to research these modules. The user fee recovery program continued during 2002. In 2003, a new category was established on the Installment Agreement Accounts List (IAAL), for duplicate payments. Use command code ADD/ADC24 to move payments found on MFTs 13 or 55. For additional information see IRM 5.19.1.5.4.6.3, User Fee Payment Transfer/User Fee Abatements.

21.5.7.4.7.6  (10-08-2010)
Justice Department Lockbox Receipts

  1. These receipts result from court actions and IRS referrals to Department of Justice (DOJ) for collection. Kansas City Processing Center (KCSPC) receives Standard Form 1081, Voucher and Schedule of Withdrawals and Credits, as notification of tax revenue secured by the (DOJ).

  2. If a taxpayer's cancelled remittance shows a DOJ endorsement:

    1. Transfer the case to KCSPC, HPTF

    2. Issue Letter 86C to notify taxpayer the inquiry was transferred to KCSPC

    3. Delay notices as appropriate

  3. Prepare Form 3210, Document Transmittal, to include:

    1. Payment Tracer Request
      Department of Justice Payment Tracer Inquiry
      Accounting Control/Services Operation
      P.O. Box 24551
      Kansas City, MO 64131

    2. Taxpayer’s name, TIN, and tax period

    3. Input STAUP or TC 470

    4. Date Letter 86C was sent

  4. HPTF will coordinate the resolution with Accounting personnel in accordance with IRM 3.17.30.13, Revenue Receipts.

21.5.7.4.7.7  (10-27-2009)
Cashier’s Check

  1. Cashier’s checks may be purchased from banks or other financial institutions.

  2. Receipts or copies of personal checks, used to purchase cashiers checks, only serve as proof of payment to initiate research. The taxpayer is responsible for contacting the vendor for a copy of the cancelled check.

    If And Then
    Payment cannot be located   Request a copy of the front and back of the cancelled cashiers check from taxpayer. If taxpayer can fax a copy of the cancelled cashier check continue following "If and Then" boxes; otherwise, close the case. Input CC STAUP for 6 cycles.
    Payment has not cleared the bank Taxpayer has not paid the balance due and the bank will not issue a duplicate check unless they have an indemnity agreement from IRS Secure an indemnity agreement. Follow the procedures in IRM 3.17.243, Miscellaneous Accounting, and IRM 3.0.167, Losses and Shortages, regarding indemnity agreements.
    Payment has not cleared the bank Taxpayer has paid the balance due and the bank will not return the funds to the taxpayer unless they have an indemnity (reimbursement) agreement from IRS Contact your local Planning and Analysis (P&A) Staff (through your manager) who will contact the author of IRM 21.5.7, Payment Tracers, for further guidance.

21.5.7.4.7.8  (10-27-2009)
Money Orders

  1. Money order vendors leave the payee, payer, and date information blank on the money order. Taxpayer is responsible for providing this information.

    If And Then
    Payment cannot be located   Request that taxpayer contact vendor for photocopies of the money order. If taxpayer can fax a copy of the cancelled money order continue following "If and Then" boxes; otherwise, close the case. Input CC STAUP for 6 cycles.
    Payment has not cleared with the bank/vendor Taxpayer has not paid the balance due and the bank/vendor will not issue a duplicate money order unless they have an indemnity agreement from IRS. Follow the procedures in IRM 3.17.243, Miscellaneous Accounting and IRM 3.0.167, Losses and Shortages, to secure an indemnity agreement.
    Payment has not cleared with the bank/vendor Taxpayer has paid the balance due and the bank/vendor will not return the funds to the taxpayer unless they have an indemnity (reimbursement) agreement from IRS Contact your local Planning and Analysis (P&A) Staff (through your manager) who will contact the author of IRM 21.5.7, Payment Tracers, for further guidance.

21.5.7.4.7.9  (10-01-2003)
Truncated Checks

  1. Truncated checks are carbonless copies of original checks. Financial institutions no longer returning cancelled checks to their clients furnish these check books.

  2. If the payment cannot be located, send the taxpayer Letter 167C, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, to request they contact the bank for a microfilm or computer image of the check. Close the case and input CC STAUP for 6 cycles.

21.5.7.4.7.10  (10-01-2004)
Cash Payments

  1. Field/Area Offices issue Form 809, Receipt for Payment of Taxes, or a cash register receipt to taxpayer for cash payments.

  2. The tax return is validated at the time of receipt showing the amount and type of tax paid.

  3. The field/area office prepares Form 783, Remittance Register, or Form 795, Daily Report of Collection Activity, to list the payments. These forms are sent to the Submission Processing campus.

  4. Research IDRS, including CC URINQ and CC XSINQ and RTR if available for these remittances.

  5. If unable to locate the payment, prepare Form 4446, Payment Tracer Research Record. Transfer the case to the HPTF at the campus that processed the payment or processed the most recent payments.

  6. HPTF will verify Form 813 for the payment. HPTF will contact Internal Security, before allowing a substantiated credit from Account 6570, based on Form 809 as proof of payment.

    Note:

    If unable to locate, it may be necessary to contact the field/area office that took the payment in and request a copy of the money order purchased for the cash payment.

21.5.7.4.7.11  (04-25-2012)
Automated Non-Master File (ANMF) Payments

  1. A DLN with a tax class "6" (the 3rd digit of the DLN) identifies a payment as Non-Master File (NMF). A flashing "N" at the bottom of the CC ENMOD, CC SUMRY and CC TXMOD screens indicate there is a NMF account at another Submission Processing (SP) Center. To access the NMF account, an "N" is input after the TIN on CC SUMRY or CC TXMOD.

    Note:

    All NMF accounts were centralized at the Cincinnati Campus as of September 2006.

  2. Contact the Accounting NMF function for researching payments dated before 1992, pre-ANMF payments. If the payment is found in another campus, request the credit be transferred to taxpayer's account. Follow procedures in IRM 3.17.46, Automated Non-Master File Accounting, for requesting NMF research and transcripts.

    Note:

    January 1, 2001, Master File introduced the new MFT 31, Separate Assessment Module. MFT 31 contains split spousal assessments previously processed to the ANMF System. Any new separate spousal assessments established on or after January 1, 2001, will be processed on MFT 31. Any spousal assessments processed prior to January 1, 2001, will remain on the ANMF and must be researched using the above NMF procedures. For more information regarding MFT 31, Split Spousal Assessments, refer to IRM 21.6.8, Split Spousal Assessments (MFT 31). Follow normal payment tracing procedures for MFT 31 accounts.

21.5.7.4.7.12  (10-01-2007)
Foreign Remittances

  1. All international or possession returns with remittances are deposited where received. As of July 1, 2007, IMF international returns are sent to the Austin campus and BMF international returns are sent to the Ogden campus. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have a U.S. bank’s routing symbol printed in the lower left corner of the check and have a nine digit routing number. These are processed as a regular deposit.

  2. Any foreign remittance including remittances that are payable in U. S. dollars, drawn on foreign banks, and received with tax returns or documents, that fail to meet any portion of (1) above will be processed using manual deposit. The deposits are then mailed to Citibank in Wilmington, Delaware and numbered and processed as a foreign remittance.

  3. Receipt and Control will process source documents with remittances that are payable in foreign currency and drawn on foreign banks as manual deposits. The deposits are mailed to Citibank for a money conversion report.

  4. When foreign currency is received, Receipt and Control will contact Bank of America to convert foreign currency to U. S. dollars. The tax return or document will be processed using manual deposit guidelines.

  5. Each campus has specific deposit processing procedures. See IRM 3.8.45.26, Specific Campuses Processing.

  6. For additional information on foreign remittances, see IRM 3.8.45.15, Foreign Check Remittances.

21.5.7.4.7.13  (10-01-2005)
Free Items

  1. If a taxpayer's cancelled check is stamped "FI" , it indicates the bank is holding credits belonging to taxpayer, referred to as "Free Items."

  2. If the case involves "Free Items " :

    1. Obtain a current transcript of the account

    2. Prepare Form 4446, Payment Tracer Research Record

    3. Route to the HPTF function at the campus center that is responsible for processing the payment when it is received

    4. The HPTF will initiate action to obtain the credit from the bank

21.5.7.4.7.14  (10-01-2013)
Federal Tax Deposits (FTD)

  1. ON January 1, 2011, the Federal Tax Deposit (FTD) Program was decommissioned. Form 8109 and 8109–B, Federal Tax Deposit Coupon, can no longer be used. All required Federal Tax Deposits must be made electronically using EFTPS.

  2. This section covers tracing an FTD payment tracer case.

    • Identifying FTDs

    • IDRS/SCRIPS Research of FTDs

    • Researching Microfilm FTDs

    • Requesting Front and Back of an FTD Payment

    • Mis-dated FTDs

    • FTD Processed as a Subsequent Payment

    • FTD Discrepancies

  3. Refer to IRM 20.1.4, Failure to Deposit Penalty, for documentation requirements prior to abating FTD penalty for date discrepancies.

  4. For additional information on FTDs see IRM 3.8.45.7.30, Federal Tax Deposit (FTD), and Document 6209 Section 3.4, Tax Return Information - Processing Codes.

21.5.7.4.7.14.1  (10-01-2003)
Identifying FTDs

  1. FTD deposits were made through coupons or electronic deposit. Paper FTDs were processed in four Submission Processing Sites

    • Austin Submission Processing Campus (AUSPC)

    • Cincinnati Submission Processing Campus (CSPC)

    • Kansas City Submission Processing Campus (KCSPC)

    • Ogden Submission Processing Campus (OSPC)

  2. The FTD deposit Microfilm Serial Number, shown on IDRS, identifies the campus that processed the FTD.

21.5.7.4.7.14.2  (10-01-2009)
Researching Microfilm FTDs

  1. Research the Federal Tax Deposit Received Registers (money tapes) if the FTD is not found on IDRS. Use the EIN and/or money amount for research. See IRM 2.3.18, Command Code ESTABM, for additional information. Any requests for FTD copies via ESTAB from microfilm should indicate the year in which the payment was made and the campus where the payment was processed in the remarks section of the request. Requests which do not include a year, will be researched for the current year only.

    Command Code Research Using
    ESTABMZ Money amount
    ESTABM4 Microfilm copy of the FTD coupon processed on the OCR system. (Prior to cycle 9442)
    ESTABS Microfilm copy of the Advice of Credit (AOC) and/or FTD coupon from SCRIPS (After cycle 9442)
    ESTAB Definer "B" Block
    ESTAB Definer "F" FTD
    ESTAB Definer "H" , Header

    Note:

    Depository banks use Treasury Form 2284, Federal Tax Deposit Advice of Credit Treasury Tax and Loan Account, to send FTD deposits directly to the campus. If Form 2284 is not available, the depository routes the FTD coupons to the Federal Reserve Bank (FRB). The FRB then prepares the Advice of Credit (AOC) and forwards Copy 3 and the coupons to the campus. When requesting coupons or AOC from Service Center Recognition Image Processing System (SCRIPS) Archive system that were not processed at your site, send the request to the center that processed the FTD coupon. For more information on requesting the documents, see IRM 2.3.62, Command Code ESTAB.

  2. Requests for images of coupons processed through SCRIPS are printed in the SCRIPS area each day. SCRIPS will sort the requests by the 5 digit office identifying number on the request and route to the appropriate campus/office via Form 3210, Document Transmittal, when the image is received. If no image is received the requestor should verify the information input to IDRS was correct. The primary reason for images not being delivered is that the requestor using CC ESTABS fails to input a valid 17 digit SCRIPS FTD Sequence Number. The first two digits of the number must be the year the coupon was processed. Many requestors will incorrectly use the campus reference number, e.g., 09 for Kansas City, for the first two digits. This will cause a search failure as 09 would indicate year 2009.

21.5.7.4.7.14.3  (10-01-2009)
Requesting Front and Back of an FTD Payment

  1. Request a photocopy of the front and back of the cancelled payment, if the missing deposit is not located on IDRS.

  2. Prepare Form 4446, Payment Tracer Research Record.

  3. Forward to the campus that most likely processed the FTD payment.

21.5.7.4.7.14.4  (10-22-2013)
Misdated FTD

  1. If there is a discrepancy between the IRS transaction date of the TC 650 and taxpayer's deposit date, secure the following:

    • Copy of the processed check

    • Photocopy of the FTD coupon

    • Photocopy of the Advice of Credit (AOC)

  2. Verify that taxpayer’s check agrees with the FTD date stamp or the AOC deposit date, and matches the transaction date.

    If And Then
    Taxpayer’s receipt agrees with the FTD coupon or AOC Matches the transaction date Send taxpayer a letter stating the transaction date is correct. Enclose a photocopy of the FTD coupon.
    Taxpayer’s receipt agrees with the FTD or AOC (IRS error) Does not match the transaction date Input a credit transfer to correct the transaction date to the receipt date. Do NOT input REQ77.
    Taxpayer’s receipt does not agree with the FTD and/or AOC (Bank error)   The bank must complete Form 13287, Bank Payment Problem Identification. Refer to IRM 20.1.4.24.2(7), Misdated Deposits. Input Staup for 6 cycles to allow the taxpayer time to submit the form. Close your case.

    Note:

    See IRM 20.1.4.24.2, Misdated Deposit, for additional information. When the intended payment date (information provided by the taxpayer) is input in the Secondary DT field, Master File will recompute the penalty analysis on the intended payment date. If the payment is timely, no penalty will be assessed. (Manually adjust the failure to deposit penalty if it has been manually restricted.)

  3. An electronic file will generate as a result of the REQ77 TC 971 input and is sent to The Bureau of Fiscal Services (BFS) (formerly Financial Management Service (FMS)) automatically. The authorized depositaries are required to provide the documentation to BFS (formerly FMS) for any assessment disagreements. Authorized depositaries will be required to present FMS with "cancelled checks," etc. If a dispute arises, BFS (formerly FMS) will request, through the campus Interest Abatement Coordinator (IAC), a copy of the AOC and/or a copy of the FTD coupon which can be accessed through SCRIPS.

21.5.7.4.7.14.5  (12-17-2010)
FTD Processed as a Subsequent Payment

  1. Payments made with an FTD coupon, Form 8109 or 8109-B, after December 31, 2010 will be posted to the module as a TC 670 and will be subject to a 10 percent penalty for non-electronic deposit.

21.5.7.4.7.14.6  (10-01-2009)
FTD Discrepancies

  1. Taxpayer or depositary may make an error when completing the amount portion of the FTD coupon. To correct this error, the depositary must forward a letter through the Federal Reserve Bank to the appropriate campus.

  2. If a discrepancy is identified between the amount of the FTD credit and the amount of the cancelled check, request the:

    • Entire block of SCRIPS images

    • Advice of Credit (AOC)

  3. If the block of coupons does not resolve the discrepancy, check the Block Completion List (BCL), if access available. Compare the amount on the BCL with the amount on the AOC.

    If And Then
    BCL and AOC amounts match Coupon was written for less than the check
    • Return copies of the cancelled check and FTD coupon to taxpayer using Letter 672C, Payment(s) Located and/or Applied.

    • Inform taxpayer of the current balance due.

    • Inform taxpayer to contact the depositary for resolution of the understated payment.

    BCL and AOC amounts did not match   Send Form 4446, Payment Tracer Research Record, to HPTF. Input TC 470 (no closing code), if the payment will fully satisfy liability.
    BCL is unavailable   Send Form 4446 to HPTF. Input TC 470 (no closing code), if the payment will fully satisfy liability.
  4. Request a manual lien release (TC 582, lien indicator) in the following situations:

    • The lien will not systemically release

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

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

    See IRM 5.12.3.3.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.

21.5.7.4.7.15  (10-22-2013)
Electronic Federal Tax Payment System (EFTPS)

  1. Electronic Federal Tax Payment System (EFTPS) is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes.

  2. The system has been programmed to accept payments for tax years 1954 and subsequent.

  3. Effective March 2004, Bank of America is the sole Financial Agent for EFTPS.

  4. Taxpayers must enroll with the financial agent for IRS pre-validation before using the system. Taxpayers may make payments to the financial agent by personal computer, telephone, or bank.

  5. Electronic funds withdrawal (EFW) is another method of paying electronically while filing electronically. The taxpayer authorizes an electronic withdrawal of funds from a designated checking or savings account during the e-file transaction.

    Note:

    Both EFTPS and EFW payments are electronic fund transfers.

  6. Payments made by EFT will show File Location Code numbers 71 (1996), or 72 (1997 through 6/30/2005), or 81 (after 6/30/2005) and Document Code 19 in the DLN. The TUS Number and Microfilm Serial Number were replaced with a Electronic Funds Transfer Number.

  7. Payments processed through EFTPS can be identified through the EFT number shown on IDRS. After taxpayers enter the information, EFTPS supplies an acknowledgment number to the taxpayer. Taxpayers should write down this number and keep it for future reference. If there is any problem with the payment, this number allows IRS to trace the payment quickly. Payments made after January 1, 2004, should be constructed using the chart in IRM 3.17.277.5.3, EFT Number. For payments made prior to January 1, 2004 customer service representatives can construct the EFT number from a taxpayer provided acknowledgment number using the following elements:

    Digit(s): Identify:
    1 and 2 The Processing Campus. Refer to Document 6209, Section 4.3, Campus and File Location Codes.
    3 The Financial Agent.
    • 1 - JP Morgan Chase & Co. (Prior to March 2004)

    • 2 - Bank of America

    • 3 - BFS (formerly FMS) Treasury Offset Program

    • 4 - Reserved

    • 5 - RS-PCC

    4 The Payment Method.
    • 0 - IRS e-file (Direct Debit)

    • 1 - ACH Credit (EFTPS through your financial Institution)

    • 2 - ACH Debit (EFTPS Direct)

    • 3 - FR/ETA

    • 4 - Reserved

    • 5 - Levy

    • 6 - Credit Card

    • 7 - EFTPS - Online

    • 8 - Railroad Retirement Board

    • 9 - Government (FEDTAX II or Federal Payment Levy Program)

    5 The Payment Indicator. This depends on the Payment Method. See IRM 3.17.277.5.3(4), EFT Number, for details.
    6–9 The Julian Date. This is the last digit of the year plus 001–366, or Last digit of the year plus 401–766.
    10–11 The Bulk Provider Number. Refer to the NOTE below.
    10–17, or 12–17 The Serial Numbers. These are Sequentially Assigned.

    Note:

    When the combined payment indicator (position 5) is 7, 8, or 9, positions 10 and 11 are used to identify the bulk filer who submitted the payment.

  8. All Bulk Providers are under Bank of America (BOA) effective 7/1/2005.

  9. CC EFTPS is a research tool developed primarily for payment tracer purposes. The command code researches the EFTPS data base for payment data and audit history.

  10. Research the payment using CC EFTPS by:

    1. TIN, EFT Amount and Payment Date - Definer T;

    2. If the taxpayer supplied EFT Number - Definer E; or

    3. Taxpayer supplied Reference Number (Confirmation Number for Credit Card Payments) - Definer R

    Note:

    See IRM 2.3.70, Command Code EFTPS, for additional information.

    If Then
    The taxpayer does not have the EFT number Advise the taxpayer to
    1. Contact the EFTPS customer service center to obtain the EFT number. The EFTPS toll-free numbers for customer service are:

      • English 1-800-555-4477

      • Spanish 1-800-244-4829

      • Telecommunications Deaf Devices (TDD) 1-800-733-4829

      • Financial Institutions 1-800-605-9876

      The EFTPS toll-free numbers are available 24 hours a day, 7 days a week, except for the TDD line which hours are 8:00 am to 8:00 p.m. ET M-F).

    2. OR check their EFTPS payment history by accessing EFTPS.gov.

    CC EFTPS indicates that EFTPS processed the payment to Master File with the correct taxpayer information; however, the payment has not posted to the tax module displayed
    • Research the Closed Unpostable Register, GUF 57–40 at Ogden Campus (@29). All EFTPS payments are processed in Ogden.

    • The payment does not show using CC ERINV or UPTIN@29 and the STATUS field on EFTPS output shows the payment is PROCESSING and does not show a name control in the NAME CONTROL field, contact the Ogden Campus EFTPS≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • For additional information see IRM 3.12.37.14.3, Researching Rejected Unpostables.

    The CC EFTPS response indicates no records were found for your input
    • Recheck your input parameters and resubmit, or

    • EFTPS did not receive the payment

    The payment was not received by the EFTPS system and the taxpayer states a payment was made through a service provided by his/her financial institution
    • Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent.

    • If the payment can still not be located, the taxpayer should obtain a paper proof of payment from their financial institution.

    Note:

    The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number in order to correct the taxpayer’s account.

    The payment was not received by the EFTPS system and the taxpayer states a payment was wired to the IRS
    • Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent.

    • The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number in order to correct the taxpayer’s account.

    Note:

    Wire payments are processed through the Electronic Tax Application (ETA) at the Federal Reserve Bank of Minneapolis.

  11. See IRM 3.17.277, Electronic Payments, for more information on EFTPS.

21.5.7.4.7.15.1  (03-25-2013)
Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer

  1. The following procedures should be followed to trace payments made by electronic funds withdrawal (direct debit) or credit card. Obtain the following information from the taxpayer:

    • Taxpayer’s Name

    • Taxpayer’s TIN

    • Date of Payment

    • Amount of Payment

    • Type of Tax Paid: Form 1040, Form 1040 Balance Due Notice, Form 1040 Advanced Payment of Determined Deficiency, Form 1120 Series (Corporate Returns), Extensions Form 7004 and Form 8868, Form 4868 (Extension of time to File), Form 1040-ES (Estimated taxes ), Form 2350 (Extension of Time to File), Form 941 (Quarterly Employment Return), Form 940 (Unemployment Return), Form 944 (Employers Annual Federal Tax Return), Form 1041 (Estate and Trust Return), Installment Agreement payments

    • Tax Year

    • Payment method (electronic funds withdrawal for an e-file and e-pay return or a credit card payment for an Integrated e-file and e-pay return, Pay by Phone, or Pay by Internet transaction)

    • Credit Card Payment Confirmation Number (if paid by phone or Internet) or a Declaration Control Number (if paid through an Integrated e-file and e-pay option)

    • Credit Card Service Provider (if payment method is credit card through either the phone or Internet)

  2. These payments are subsequently processed through EFTPS. Research EFTPS by following the EFTPS payment tracer guidelines and by using CC EFTPS to ensure that the Service processed the payment. Follow procedures in IRM 21.5.7.3.2, IDRS Research for Payment, and IRM 21.5.7.3.7, Researching Unpostable Payments, to research payments and unpostable payments. Payments will appear on CC EFTPS before posting to Master File. If the payment is found using CC EFTPS inform taxpayer payment has been received. If the payment has posted, the EFT number on IDRS will identify it. If the payment cannot be found, check the unidentified remittance file.

    • The fourth digit in the EFT number will be a "0" for electronic funds withdrawal (direct debit) payments

    • The fourth digit in the EFT number will be a "6" for credit card payments

      If Then
      The payment needs to be transferred The credit transfer transaction must include the Electronic Payment Indicator
      The 1040 payment is resequencing at Master File waiting for the return to post CC EFTPS and CC IMFOL Definer Q will be the only research method available to identify the receipt of the payment.

      Note:

      Electronic funds withdrawal transactions generally post to master file one to two cycles after the effective date of the payment.

      The taxpayer e-filed the return with an electronic funds withdrawal payment and the payment cannot be located by using CC EFTPS
      1. Check to see if the taxpayer properly entered the withdrawal request on the e-filed return by using CC TRDBV. See IRM 21.7.4.4.4.15, Modernized e-file Program (MeF) for Corporate and Exempt Organization Returns, for information on electronically filed Form 1120, Form 1120S and Form 990

      2. On the first page of CC TRDBV, there is a list of forms filed with the return. The form that indicates that the taxpayer requested an electronic funds withdrawal is titled "FORM-PYMNT"

      3. The access code shown to the left of "FORM-PYMNT" may be entered on the top line of the CC TRDPG screen to bring up the FORM-PYMNT. The FORM-PYMNT will show the:
        RTN
        Bank Account Number
        Payment Amount
        Account Type (savings or checking)
        Date the Taxpayer Requested the Money be Withdrawn From Their Bank Account

      4. If CC TRDBV shows the "FORM-PYMNT" , the payment will be processed through EFTPS unless it was cancelled

      5. If CC TRDBV does not show a "FORM-PYMT" , instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances

      Note:


      Form 1040 balance due e-filed returns do not post until cycle 20 or one cycle after the full payment posts to the account, whichever occurs first.


      Credit card payments usually post 5–7 business days after the payment is completed and will appear on the appropriate Taxpayer Information File (TIF) as a pending transaction using CC TXMOD.
      The credit card payment was made through an Integrated e-file and e-pay option Research CC EFTPS for the payment. If the payment is not shown, refer the taxpayer to their software package or tax professional for further assistance.
      The credit card payment was made by phone or internet Check different tax periods to ensure that the taxpayer did not select the wrong tax type (for example, chose current year 1040-ES instead of prior year 1040). Also, verify what TIN was used for the transaction.

      Note:

      Joint filers who submitted the transaction under the secondary SSN instead of the primary SSN may require a credit transfer.

      The credit card payment cannot be located using research, CC EFTPS and CC IMFOLQ or the unidentified remittance file, and the taxpayer has a confirmation number for a pay by phone or pay by Internet transaction
      - or the credit card payment was made through either a pay by phone or Internet option but the taxpayer does not have a confirmation number and no payment can be located on IRS records
      Refer the taxpayer to the service provider they used to trace the payment. If the last character of the credit card confirmation number (the number is 7 digits long) is:
      • "1" - The payment was made through Official Payments Corporation or through ChoicePay

      • "3" - The payment was made through Link2Gov or through Businesstaxpayment.com.

      • "4" - The payment was made through RBS WorldPay, Inc,

      Refer to IRM 21.2.1.48.5(7), Credit or Debit Card Payments (Pay by Phone or Internet), for each company's contact information.
      The credit card payment cannot be located, the service provider cannot verify the payment and the payment is not reflected on the credit card billing statement Instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances

21.5.7.4.7.15.2  (10-01-2009)
Direct Debit Installment Agreements

  1. Direct Debit Installment Agreements (DDIA) is a Collection program. Taxpayers make arrangements to pay tax liabilities in installments via Electronic Funds Transfers.

  2. Payments post to Master File as TC 670, Document Code 18, Blocking Series 800-899.

  3. Prepare Form 4446, Payment Tracer Research Record, and route to HPTF, if unable to locate the payment.

21.5.7.4.7.16  (10-01-2013)
Remittance Strategy Paper Check Conversion (RS-PCC)

  1. As of January 2008, Remittance Strategy Paper Check Conversion (RS-PCC) was implemented. It is a web based system that enables AM Campus Support, Submission Processing (SP) campuses, and TAC offices to electronically process paper remittances at the point of receipt. Payments processed through RS-PCC include those received in areas of the AM Campus Support Sites (Andover, Atlanta, Brookhaven, Memphis, and Philadelphia) such as Insolvency, Offer In Compromise (OIC), and Mis-directed payments, as well as payments for Offshore Voluntary Disclosure Program (OVDP) received at the Austin SP campus and payments received at Field Assistance (FA) TAC offices.

  2. Payments processed through RS-PCC are scanned and electronically sent to Fiscal Service (FS) Over the Counter Channel Application (OTCnet) for deposit.

  3. OTCnet converts paper checks (personal and business) into electronic Automated Clearing House (ACH) debits or image documents that are cleared through the Check 21 network. Paper checks can be bank checks (personal or business), money orders, cashier checks, credit card checks, and/or state and federal checks. See IRM 3.17.278, Paper Check Conversion (PCC) and Remittance Strategy Paper Check Conversion (RS-PCC) Systems.

  4. Posting information of RS-PCC payments is sent to EFPPS for master file posting.

21.5.7.4.7.16.1  (10-01-2013)
Researching RS-PCC Payments

  1. RS-PCC payments are identified by a DLN beginning with 81, 82, or 83 and a 15 digit Electronic Funds Transfer (EFT) trace number on IDRS.

    Note:

    The EFT number that identifies an RS-PCC payment is the same EFT number that identifies an EFTPS payment. The EFT trace on CC IMFOLT and CC BMFOLT is a 17 digit number with the first two numbers identifying the SP center code (e.g., 29 for Ogden) and the last 15 digits are the EFT number.

    Note:

    Taxpayers do not have to be enrolled in EFTPS for their payments to be processed through RS-PCC and they will not have the EFT number.

  2. The EFT number for payments processed at AM campuses and Austin SP will begin with 520.

  3. The EFT number for payments processed at TAC offices will begin with 521, 522, 523, and 524.

  4. The eighth and ninth digits will represent the site where the payment was processed. For a listing of all RS-PCC EFT site listings see Exhibit 3.17.278-4, Field Assistance RS-PCC Sites.

  5. Utilizing the information above, access the RTR system to locate the payment. Refer to IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System.

    Note:

    Payments processed through RS-PCC will not have any IRS information stamped on the back of the check.

  6. RS-PCC payments are identified by the site identification number as follows:

    Site Identification Number
    Andover 08
    Atlanta 07
    Brookhaven 19
    Memphis 49
    Philadelphia 28
    FA TAC Offices 00

    Note:

    Prior to October 19, 2010, all payments processed through RS-PCC used site identification number 00.

  7. If you cannot locate the missing payment after performing preliminary research (refer to IRM 21.5.7.4.2(2), Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for required preliminary research), then following the instructions found in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF) to prepare a referral, Form 4446, Payment Tracer Research Record. Include the following information in the remarks section of the Form 4446:

    • The taxpayer's contact number

    • Notate "RS-PCC Payment"

  8. Advise the taxpayer to allow 30 days to receive a response.

21.5.7.4.7.17  (10-01-2007)
Lloyds of London Taxpayers

  1. Lloyds of London makes quarterly deposits for some 1040ES/NR taxpayers via Electronic Funds Transfer (EFT). As of July 1, 2007, these deposits are made at the Kansas City campus only.

  2. For payments made to Philadelphia prior to July, 2007 prepare Form 4446, Payment Tracer Research Record, and route to HPTF, in the Ogden campus if unable to locate the payment.

  3. HPTF will research the Fedwire Deposit System support listing maintained in Accounting by the payment date.

21.5.7.4.7.18  (04-18-2014)
State Income Tax Levy Program (SITLP)

  1. The State Income Tax Levy Program (SITLP) is an automated levy program. SITLP matches a Master File database of delinquent taxpayers eligible to be levied, against a database of state tax refunds for each state participating in SITLP. Currently, this process only matches against IMF accounts.

  2. See IRM 5.19.9, Automated Levy Programs, for more information on SITLP inquiries, exclusion criteria, and appeals procedures.

  3. Martinsburg Computing Center (MCC) creates SITLP files for states to process biweekly. Files are created and shipped during even cycles. The states generally process the SITLP file for a two week period, and creates a cartridge that is sent to the appropriate campus for processing. The state sends the cartridge with a paper check for the total amount of the SITLP levy proceeds to a SITLP Coordinator at the processing campus or transmits the payment electronically via EFTPS.

  4. Each state is required to send the taxpayer correspondence advising of the SITLP levy and refer any inquiries to the ACS toll-free telephone number. Taxpayers may receive the state notice weeks before the IRS notice, CP 92, Notice of Levy on State Refund Notice of Your Right to a Hearing, is issued. As a result, little information is available. This has resulted in telephone calls by IRS employees to state taxing agencies. FRONT-LINE ASSISTORS SHOULD NOT CALL STATE TAXING AGENCIES.

  5. When it is determined that a taxpayer is not excluded from the SITLP levy, the combination of a TC 971 AC 600 and a TC 670 designated payment code (DPC) 20/21 on a tax module generates the CP 92.

  6. If Then
    A TC 971 AC 600 is present without a corresponding TC 670 DPC 20 or 21 It is likely the levy proceeds are forthcoming, or were previously applied to other modules
    Both the TC 971 AC 600 and a TC 670 DPC 20/21 are present The SITLP levy proceeds were applied to the tax module
    The taxpayer wants to resolve the remaining balance, discuss full pay, installment agreement, offer in compromise, etc. Follow procedures in IRM 21.3.12, Accounts Management Balance Due Telephone Contacts, or IRM 5.19.1, Balance Due.
    The SITLP levy was erroneous Procedures should be followed to issue a manual refund.

    Note:

    Wrongful levy cases and urgent situations requiring refunding of SITLP payments should be discussed with the SITLP Coordinator. They will determine if a wrongful levy situation has occurred or if the State needs to be contacted. The SITLP Coordinator Listing can be found be selecting State Income Tax Levy Program (SITLP) Coordinators under the Who/Where tab on the SERP Home Page.

    After all research has been completed and you are unable to locate the payment, Prepare Form 4446, Payment Tracer Research Record, and route to HPTF.

21.5.7.4.7.19  (10-01-2003)
Payment Tracer Procedures for Form 8038-T

  1. Missing payments related to Tax Exempt Bonds that are received with Form 8038–T, Arbitrage Rebate, Yield Reduction, and Penalty in Lieu of Arbitrage Rebate, are worked at the Ogden Accounts Management Campus (OAMC) in the Exempt Organization Accounts Team. Form 8038-T is the only Tax Exempt Bond that is received with a remittance (with the exception of closing agreements). The remittance is identified as the green rockered money and processed as a TC 610 to the Master File.

  2. Any campus receiving Form 8038-T payment tracer cases should transship the case to OAMC, Exempt Organization Accounts Team using Form 3210, Document Transmittal. Ogden will follow the procedures in IRM 21.7.7.5.4.3, TEB Payment Tracer Procedures, to resolve the case.

21.5.7.4.7.20  (10-01-2010)
Criminal Restitution Payments, AKA Court Ordered Restitution Payments

  1. Restitution is a legal remedy that can be ordered by the court, in a criminal case. A restitution order requires the criminal defendant to pay money or render services to victims in order to redress the loss the defendant has inflicted. Normally imposed during sentencing, it can be agreed to by the parties in a plea agreement or imposed as a condition of probation or supervised release.

  2. In a criminal tax case, the offense generally results in the loss of government property (i.e., the money to which the government was entitled under the tax laws but which the defendant did not pay). Through a restitution order, a court can require a defendant to pay money to the IRS in order to redress the losses he or she inflicted on the federal treasury.

  3. Restitution is not assessed as a tax, but payment of restitution for taxes owed must be credited against the civil liability for unpaid taxes as provided in a plea agreement or court order.

  4. Judgment and Commitment Orders (J & Cs) normally specify that defendants are to submit restitution payments to the office of the clerk of court in the district in which the defendant was sentenced. This will generally include restitution payments required to be paid to the IRS.

  5. The clerk of court has the responsibility for receiving, processing, and recording restitution payments made by defendants. The clerk of court will forward the money (Treasury checks, personal checks, and/or money order) to the victim(s) listed in the restitution order, which may include the IRS. Criminal restitution payments made to the IRS should be mailed to the address below.

  6. The clerk of court offices will disburse criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS will be processed by Submission Processing at the Kansas City Campus only. The clerk of court offices have been requested to send all criminal restitution payments to the following address:

    • IRS-RACS
      Attn: Mail Stop 6261, Restitution
      333 W Pershing Ave
      Kansas City, MO 64108

    Note:

    If criminal restitution payments are routed to an IRS office or campus other than Kansas City, they must be transshipped via overnight traceable method per Manual Deposit IRM 3.8.45.6.26, Department of Justice/Criminal Restitution Program Payments (KCSPC Only).

  7. Inquiries regarding missing court ordered restitution payments or if taxpayer’s cancelled check shows a Department of Justice (DOJ) endorsement, contact Kansas City SPC Technical Advisor at 816-325-3780 for receipt and reconciliation of criminal restitution payments.

  8. Further information regarding criminal restitution payments can be found in IRM 3.17.243.7.9, Court Ordered Criminal Restitution Payments.

21.5.7.4.7.21  (01-21-2014)
IRS Direct Pay

  1. IRS Direct Pay is a new payment application that is currently available to selected Individual Master File (IMF) taxpayers through IRS.gov on a limited release (pilot) basis. Refer to IRM 21.2.1.48.1, IRS Direct Pay for more information regarding this new payment method.

  2. Refer to IRM 21.2.1.48.1.1, Responding to IRS Direct Pay Inquiries, regarding verification of payments made through IRS Direct Pay.


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