≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ records erroneous refund receivables that are NOT court cases. This account represents erroneous refund receivables that have NOT resulted in court cases nor have been collected, assessed or determined uncollectible. ≡ ≡ ≡ ≡ ≡ ≡ is supported by copies of bills, 510 C letters, debit vouchers or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ provides internal control for disbursement losses (unrecoverable erroneous refunds). Cases are maintained in this account while requesting administrative resolution for the Accountable Officer .

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ provides internal control and accountability for disbursement losses. This account will be debited to provide credit to the ≡ ≡ ≡ ≡ ≡ ≡ , Disbursement Loss when administrative resolution is authorized.

The unauthorized movement of money, filing of returns, making of adjustments, or requesting refunds that is calculated to cause illegitimate gain to an employee is fraud. The Field Director, Submission Processing is responsible for reporting these erroneous refunds. Employee fraud is the only preliminary report required for disbursement losses. If fraud is suspected, contact TIGTA immediately.

The preliminary reports will contain a statement of facts, including type of irregularity, date and amount. Include the name of the Accountable Officer and information on any repayments already made.

Preliminary reports from the Field Director, Submission Processing are sent to the Director, Submission Processing W&I.

Mail Reports to:

If TIGTA issues a supplemental memorandum or full restitution is received a Supplemental Report is sent to the Director Submission Processing W&I.

Relief requested when the erroneous refund is not recoverable. The civil suit statute expiration date will determine that the account is not recoverable for most non-court cases.

Management is responsible for ensuring that administrative resolution is requested monthly.

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The Director, Submission Processing W&I is authorized to resolve all losses caused by employee fraud. The accountable officer for employee fraud is the director at the time the loss occurred. When the employee fraud case is determined to be uncollectible, prepare a memorandum from the Field Director, Submission Processing to the Director, Submission Processing W&I. The memorandum contains a complete explanation of how the loss occurred and the circumstances surrounding it. State what internal controls were in place at the time of the loss and any changes made as a result of the loss. State what action was taken to recover the loss and why it is uncollectible. A recommendation is made to grant relief to the accountable officer. This recommendation is supported by the case documentation. A statement granting relief is part of the memorandum. Include a statement of how the loss will be resolved when relief is granted. See IRM Exhibit 3.0.167–15.

An electronic copy of the case listing is electronically mailed to the Losses and Shortages Analyst when the memorandum and case listing is mailed.

The Disbursement Loss Relief Request Checklist is completed for each case. The checklist is part of the case file for all cases. See IRM Exhibit 3.0.167–13.

When relief is granted (employee fraud) or administrative resolution is authorized the procedures in IRM 3.0.167.10.3 are followed to clear the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

The monthly Loss Shortage/Recovery Support List (LSR) is faxed to the Losses and Shortages Analyst.

Clear the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Unexplained Losses, when relief is granted. An adjustment is made to revenue receipts:

Clear the ≡ ≡ ≡ ≡ ≡ ≡ , Deposit Discrepancies, when relief is granted. An adjustment is made to revenue receipts:

Clear the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , when administrative resolution or relief is granted, the following journal action is required to clear the ≡ ≡ ≡ ≡ ≡ ≡ ≡ . ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The Government Losses in Shipment Act, 40 U.S.C. Section 17302, provides for reimbursement to federal agencies suffering loss, damage or destruction of valuables in transit to the consignee designated to receive their shipment.

A Submission Processing Campus or Area Office receives notice or determines that a deposit was lost, destroyed or damaged in transit to the federal depository. The following procedures are followed, if the deposit contained ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , a report by wire is transmitted to the Bureau of Public Debt followed by a written report.

The report includes, date of shipment, location shipped from, amount and kind of valuables, depository name and address, name of carrier, method of transportation, bill of lading receipt number and cause of the loss, destruction or damage, if known.

Submission Processing or Area Office immediately reports the loss, destruction or damage to their local Secret Service Office and TIGTA.

A copy of the wire or report is used by the Accounting Operation as the authority to establish a control while the deposit is being reconstructed.

The Secretary of the Treasury is authorized to replace lost, destroyed or damaged valuables, or their value, under GLISA. Claims for replacement for losses are sent through appropriate administrative channels to the Commissioner W&I.

The request for replacement is accompanied by a copy of the report of the loss, proof of shipment, copy of the receipt, bill of lading or other record and proof of loss, destruction or damage including a statement of the circumstances and condition in which a shipment was received. Also needed are affidavits regarding the loss from the depository and carrier, statement and recommendation of the investigating officers, statement regarding all actions taken to recover the loss and a copy of depository and carrier contract, if available.

Accounting must follow up with the depositary on any deposits not confirmed within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . A second contact will be made ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

If the deposit is still unconfirmed ≡ ≡ ≡ after the second contact, the Accounting Operation managers will notify Supervisors; the Field Director, Submission Processing; Receipt and Control function, and the area office that an area office deposit is missing. TIGTA and the Director, Submission Processing W&I are also contacted.

If the deposit is traced to the depositary via receipt of transmittal, the loss is the responsibility and liability of the bank. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is not debited. The W&I Staff will coordinate with the bank representatives to resolve. If necessary, Chief Counsel is contacted for assistance in receiving appropriate credit from the bank. Financial Management Service can provide assistance in problems arising with financial institutions. Financial Management Service has an automated system that assesses interest to the financial institution when the deposit ticket date differs from the current date. Therefore, IRS should verify that the financial institution is reporting the date correctly on the confirmed deposit tickets. IRS does not receive this payment of interest. This could also apply when resolving "routine" deposit discrepancies.

If the deposit cannot be traced to the depositary bank, take the following recovery actions; credit the Revenue Receipt Accounts in the General Ledger for the amount of each missing SF215A and Debit the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Loss/Shortage) and request returns or payment documents from files. DLNs are determined from the Accounting Package. Returns pulled from files are timely released upon completion of research. While the returns are charged out, they are maintained in a searchable order so that other requesters can have access to the return information when necessary. In the event that some items are missing from these blocks, initiate special search procedures to locate them.

Request MFTRA to determine account status. IMFOL/BMFOL is used to research account status also. Check IDRS for payments which did not post. This identifies rejected or unpostable items. Alert the Reject or Unpostable Areas on any items discovered. All credits post before they are moved to satisfy the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Prepare a list of taxpayers' names, DLNs, and the credits remitted that are reflected on each return or payment document. Balance the individual amounts on the list to the applicable Form 813 and the deposit tickets. Determine whether the remittances were made by check, money order, or cash.

When it is determined that cash was tendered, contact the Director, Submission Processing W&I, do not debit the taxpayer's account for lost cash deposits.

When the remittance is a cashier's check or money order, follow the indemnity agreement procedures to secure a replacement.

When the remittance is a personal check, send a letter to each taxpayer explaining that their check was lost prior to deposit, the taxpayer should stop payment on the original check and reissue a new check. Furnish the taxpayer with a name, telephone number and mailing address of the person to contact for additional assistance.

Freeze the taxpayer's account so that no notices or refunds are sent. Replacement remittances should be deposited daily on a separate deposit ticket and the amounts of the deposit controlled.

When taxpayers reduce their remittances for expenses incurred for the "stop payment" action, or if they claim reimbursement for these expenses, but have not reduced their remittances, the procedures for Reimbursement of Bank Charges is followed.

Replacement checks may become dishonored because of the "stop payment" action. Contact the taxpayer by phone, or by letter and request that the bank be advised to remove the "stop payment" on the replacement check. Hold the dishonored checks ≡ ≡ ≡ ≡ ≡ if contact is by phone, or ≡ ≡ ≡ ≡ ≡ ≡ if contact is by letter and redeposit.

If a replacement check is not received within ≡ ≡ ≡ ≡ ≡ ≡ of the date of the first letter, or if it is dishonored for other than "stop payment" , debit the taxpayer's account and remove freezes etc. to allow issuance of a balance due notice.

Because of the possibility of litigation or future correspondence, each taxpayer involved should have a folder prepared to receive all information pertaining to their account. These will be retained ≡ ≡ ≡ ≡ and disposed of according to the Records Disposition Handbook.

If an accounting package is lost, an exhaustive search of the Submission Processing Campus or Area Office, as appropriate, will be conducted. If the package is not found, it will be reconstructed from the documents, by contact with the area office and with the bank, as necessary and appropriate.

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If a loss in shipment occurs, the agency should first explore the possibility of filing a claim under the GLISA and should consider requesting relief only if this fails. Denial of a claim under GLISA will cause deeper inquiry upon request for relief since it suggests the possibility that someone at the point of shipment may have been negligent, but it will not automatically preclude the granting of relief.

If Submission Processing or an Area Office receives notice or determines that a deposit is lost, destroyed or damaged in transit to their depositary and the deposit contains ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , a report by wire is sent to the Bureau of Public Debt followed by written report. The report includes date of shipment, amount and kind of valuables lost, destroyed or damaged, name and address of the consignee, method of transportation, name of carrier and location from which shipped. Also, provide the registry or receipt number of the carrier bill of lading and cause of the loss, destruction or damage.

Submission Processing or an Area Office must immediately report the loss, destruction or damage to their local Secret Service Office and TIGTA.

A copy of the wire or report is used by Submission Processing as the authority to establish a control while the deposit is being reconstructed.

A claim under GLISA is sent to the Director, Submission Processing W&I. The request for replacement should be accompanied by a copy of the original loss report, proof of shipment, copy of the receipt, bill of lading or other record and proof of loss, destruction or damage. Include a statement of the shipment's condition when received, where applicable how the contents were inspected and verified, and affidavits regarding the loss from the consignee and carrier. A statement and recommendation of the investigating officers. A statement regarding all actions taken to recover the loss. Copy of depositary and carrier contract, if available.

Responsibility for controlling and working indemnity agreements is in the Accounting Operation Submission Processing, Taxpayer Advocate Service or Area Office, Technical Services.

The following actions are necessary before submitting an indemnity agreement to Headquarters for approval.

Once a formal request for an indemnity is received from the bank the request should be submitted to the Headquarters Analyst at:

The memorandum requesting an indemnity agreement must be signed by the Field Director, Submission Processing, Taxpayer Advocate Service or Area Office Director and contain the following information:

Attachments to the request must contain:

The replacement check must be issued payable to the United States Treasury. Under no circumstance will it be reissued payable to the taxpayer.

Delegation Order 29, IRM 1.2.40.21, delegates to Field Directors, Submission Processing the authority to certify and approve as accountable officers Internal Revenue Collections.

Deposit Tickets prepared by Submission Processing Campuses and Lockbox Banks use the Agency Locator Code for the campus. Field Directors are accountable for all tax collections received within their accounting jurisdiction. They are accountable for Losses and Shortages of collections, Federal Tax Deposits, Treasury Bond Deposits, as well as debit vouchers and assets seized in lieu of tax payments.

Area offices are responsible for providing information on Losses and Shortages, Seized/Acquired Property and Collateral Held to Submission Processing to ensure that proper accountability is maintained.

If the transfer of accountability coincides with the end of the month, the IRACS month-end processing will be completed. The SF 224 for the departing director will be marked "FINAL" . The SF 224 submitted the following month under the accountability of the new director will be marked "FIRST" .

If the transfer of accountability does not occur at the end of the month, closeout procedures must be completed for the date of closeout. Generate the SF 224 but do not transmit to Financial Management Services. Include the SF 224 in the accountability package. IRACS cumulates the SF 224 so these figures will be included in the end of month SF 224 sent to FMS.

A representative is designated to ensure that the procedures necessary to transfer accountability are followed and documented.

Support Services must change vault/safe combinations the outgoing director had access to, replace form letters bearing the outgoing directors name, change signature stamps and review Delegation of Authority Orders.

Accounting Branch must ensure all debits and credits are journalized under the correct directors accountability.

These instructions provide the minimum requirements and general guidelines for Accounting.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must be balanced before the end of the month of the date of transfer and included on Form 3997 even if it is not at the end of a quarter.

After assuring that all transactions have been posted to IRACS, prepare an Accountability Package. This package must include information for both outgoing and incoming Directors. The following documents are required for the package:

Prepare a memorandum from both Field Directors to the Director, Submission Processing W&I with a statement that both officials have reviewed their records of accountability. Provide a concurrence line for both officials' signatures on the memorandum. A copy of the documents in the accountability package will be provided to either official if requested.

A complete original accountability package will be maintained in the GAO Site Audit File.

Prepare a copy of the accountability package for the Director, Submission Processing W&I.

Public support, understanding and cooperation are vital to the successful administration of our self-assessment tax system. Certain public ceremonies tend to promote our objectives. The incoming Director will discuss ceremonial options with the Commissioner W&I.

Informal induction may be limited to an informal meeting with the Division Commissioner swearing in the new appointee. Generally, the audience will be made up of the local staff with possible attendance of heads of professional groups. News coverage would be limited to distribution of a prepared news release. However, the extent of planned coverage will be on a case by case basis.

Formal induction includes a formal swearing in by a Federal Judge in a courtroom setting. An appropriate guest list and media coverage are necessary.