25.19.5  Payments

25.19.5.1  (09-01-2008)
Health Coverage Tax Credit (HCTC) Payment Processing

  1. The Health Coverage Tax Credit (HCTC) Payment Processing Operations (PPO) utilizes four facilities to complete daily processing; each facility has a different function:

  2. The Headquarters Office is located in Washington, D.C. This office performs oversight and guidance to the other facilities, develops and maintains policy, certifies manual and electronic payments for processing, and resolves issues regarding erroneous payments. This section of the Internal Revenue Manual (IRM) documents the processes that support the financial interactions between HCTC and all external entities.

  3. The Headquarters office is responsible for a myriad of tasks. In addition to performing oversight and guidance to F&A, the BFC, and US Bank, they are responsible for the following

    • Development and maintenance of policy

    • Development and maintenance of work process flows and desk guides

    • Review and certification of manual and electronic payments

    • Resolution of escalated Health Plan Administrator (HPA) issues

    • Resolution management with US Bank

    • "Congressionals"

    • Program Management Review (PMR) for the Payment Processing Operations team

    • Resolution of Erroneous Payment (EP) issues (payments made to a HPA when the participate is not eligible to receive the credit)

  4. The Finance and Accounting (F&A) office located in Houston Texas. This office is staffed with accountants and analysts. They are responsible for maintaining participant account records, general ledger reconciliations, and Health Plan Administrator (HPA) relationship management.

  5. The Finance and Accounting (F&A) Office is responsible for all accounting, payment processing and vendor related activities. These include, but are not limited to:

    • Payment processing

    • Participant account maintenance

    • Participant returned funds

    • Health plan Administrator (HPA) interactions

    • HPA (vendors) set-up in IFS

    • HPA account maintenance

    • HPA returned funds

    • HPA bulk premium changes

    • Reconciliation of HCTC general ledger

  6. The Beckley Finance Center (BFC) is located in Beckley, WV. The BFC is part of the IRS Chief Financial (CFO) Office. They are responsible for processing payments for manual transactions and electronic payment files, and perform monthly reconciliations to the IRS general ledger.

  7. The Beckley Finance Center supports the PPO Team on a daily basis and performs a variety of tasks. They include, but are not limited to:

    • HCTA (HPA) vendor set-up

    • Manual payment processing

    • Payment file processing support

    • Post-payment file reconciliation reports

    • Payment cancellations

    • Reconciliation of HCTC appropriations to the IRS general ledger

  8. US Bank is located in St. Louis, MO. US Bank has contracted with the IRS to provide lockbox services, and process receipt, and deposits of, the HCTC participant's payments.

  9. US Bank supports the HCTC Program by providing the following services:

    • Processing participant payment

    • Processing HPA returned funds

    • Depositing payments into the HCTC appropriation through Cash Link

    • Generating, and mailing, reject letters to participants no longer eligible to receive the credit


    The address for US Bank is:

    U.S. Treasury - HCTC

    P.O. BOX 970023

    St. Louis, MO 63197-0023


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