The Service is committed to ensuring a 24-hour deposit standard. As we move toward attaining that goal through improved technology, it is of the utmost importance to deposit the largest amount of money in the shortest possible time frame in order to achieve good cash management practices. Management at all levels must monitor the flow of receipts to ensure that this objective is achieved. Remittances of $100 million or more must be deposited on the day of receipt. See IRM 3.8.45.6.35.

The Receipt and Control Operations Manager is responsible for the receipt, safeguard, accuracy, and timely deposit of all monies received in payment to the Government through the Internal Revenue Service. Maintaining the integrity of the IRS received date is required. Credit all payments for the earliest date a payment is received by the Internal Revenue Service or the Department of the Treasury.

All remittances of $50,000 and over must be deposited by the next business day (excluding Saturdays and Sundays). During peak periods, identified in (5) below, all attempts must be made to deposit these items the same day of extraction or no later than the next business day.

The extended cycle for depositing receipts for the April peak completion date is determined by Wage and Investment Operating Division and sent to the Campuses via memorandum.

During the following mini-peaks, extended cycles must not exceed 5 business days. However, the deposit cycle may be extended to a maximum of 2 work days. See IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates for more information.

The deposit cycle may be extended to a maximum of 3 work days during the January, April, and October 31 periods, when business returns are received.

During the above mentioned peak periods, multiple daily deposit pickups should normally be utilized in order to continue to deposit the largest amount of money in the shortest time frame (3.8.44.1.1(1)). Sites will usually schedule two deposit pickups during peaks, taking into consideration prior year receipts and production standards balanced with approved projected changes (e.g., consolidation issues, transshipping, increase in ELF, changes in Lockbox volume, etc.). See IRM 3.8.45, for additional cash management guidelines.

Receipt and Control deposit managers are responsible for ensuring the deposits are released as a quality balanced product.

Deposit managers must perform regular reviews of completed work accumulated in final deposit area.

The review will be conducted on 5% of the remittances during non-peak periods.

After Pass 2 on the transport, fan the lower right corner of the block of remittances verifying that the Magnetic-Ink Character Recognition (MICR) encoded amount agrees with written amount of remittances. Review remittances for breaks in MICR encoded digits and for improper encoding, for example, encoded upside down. Also review the first and last check to ensure the audit trail is complete and legible.

Deposit managers or appointed representatives, must conduct a 100% review of deposits prior to release on a given day of each week. This must be continued until deposits are 100% accurate on a regular basis and controllable deposit discrepancies are below 100 cumulative items.

Prepare an action plan for conducting the reviews.

Schedule a meeting with Accounting Operations, when necessary, to review discrepancies discovered during the 100% Product Review. All discrepancies must be recorded and follow-up action annotated accordingly.

Deposit managers must communicate security standards contained inIRM 1.16.12, Facility and Property Protection, to their employees at least once yearly.

Adequate security equipment and facilities must be provided to safeguard money, securities, etc., which are handled in the Deposit Activity Function. See IRM 3.8.45, Manual Deposit, for additional information.

Managers should report any employee suspected of theft to the Treasury Inspector General for Tax Administration.

The following items are strictly prohibited from the secure Receipt Processing areas:

The use of the camera function on a camera capable cell phone is prohibited in the secure remittance processing area.

Random Reviews of All Persons will be conducted in Secured Areas. First line managers or designee will conduct, at a minimum, one monthly random review of each employee to ensure compliance with all security policies as they relate to personal belongings and usage of camera cell phones in the secure remittance processing areas. The review will be completed at the start of the shift, at the entrance of the secured receipt processing area. Each manager shall complete and maintain a remittance security review report that lists the unit and the date each employee was reviewed, a description of findings, and the reviewer's initials. If no finding, mark "None" on the review check sheet . See IRM 3.10.72 for a copy of the review log sheet.

Managers in Remittance Processing areas should ensure visitors are only permitted to carry articles into the restricted area which are absolutely necessary to conduct their business while working in the area. (i.e., portfolios, note pads, repair kits or manuals, binders, paper documentation, etc.) Inspection of these items is not necessary upon entering the area. However, visitors should be advised that a member of management or designee will screen these items prior to exiting the restricted area to reduce the opportunity of unauthorized disclosure, theft of taxpayer information, or theft of remittances. If the door monitor observes a visitor with an item that is prohibited from the restricted area they should immediately notify a manager. Managers will approach the visitor to discuss the policy of prohibited articles and determine whether the item is necessary for conducting business within the restricted area

There are two sources of information that management uses to monitor the deposit activities and cash management practices, the Deposit Activity Report (DAR) and the Daily Deposit Report (DDR). See IRM 3.8.45, Manual Deposit, for specific procedures.

The deposit function is required to report total dollars and items deposited to National Office on a weekly basis. There will be periods when it is necessary to work weekends to meet the deposit requirements or to meet the Program Completion Date (PCD). Refer to IRM 3.8.45, Manual Deposit, for specific reporting procedures.

When it is necessary to work a holiday, the dollars and items deposited on the holiday will be included in the next business day's deposit report.Refer to IRM 3.8.45, Manual Deposit, for specific reporting procedures.

When a manager or an employee becomes aware of a loss or shortage, the loss or shortage must be reported immediately. See IRM 3.8.45, Manual Deposit and IRM 3.0.167, Losses and Shortages, for additional instructions.

Campuses' commercial depositories are selected for a specified period (with two one-year renewal options). They are chosen through a competitive bid process initiated by IRS and directed by the Treasury Department, Financial Management Service (FMS). See IRM 3.8.45, Manual Deposit, for more information.

All campuses must have a licensed/bonded or armored vehicle courier service to transport deposits to their designated depositary. See IRM 3.8.45, Manual Deposit for specific requirements.

Deposit items that are not processed through ISRP must be processed following the regular Manual Processing procedures for each document/return type. See IRM 3.8.45, Manual Deposit, for specific information.

Each Campus should establish local procedures for controlling the source documents and remittances throughout the payment processing. However, the source documents must remain in searchable order until the correction and balancing processes are complete.

After the deposit is balanced and released to the depository, each Campus will coordinate local procedures for routing and distributing the source documents.

Source document paper, excluding actual IRS returns, IRS Forms and other correspondence or items that do not require pipeline or stop mail handling should be destroyed (classified) 5 business days after the deposit date. Some examples of items subject to destruction as classified waste include:

Staging of such items will normally be within the Deposit function.

Prior to disposal, source document paper should be reviewed/fanned through to ensure no mis-sorted items are in the bundle.

The RPS Prebatch function is responsible for finalizing the sort of remittances and related source documents and preparing/associating appropriate control documents for each type of deposit for the Payment Perfection function and the OE/KV function. Although the pre-batch functions may be physically separated, the procedure for preparing and controlling work should be the same for both Payment Perfection and OE/KV.

Prebatch is responsible for reviewing each sort to eliminate mis-sort condition by spot checking the batch, and for entering information on Batch/Block Tracking System (BBTS).

BBTS is a comprehensive integrated batch creation and tracking system used to generate unique block headers, including the 6-digit Remittance Processing System Identification (RPSID) number, and other identifying batch information.

Batch Separator, Form 11356 (non-scannable), Exhibit 3.8.44–29, contains the 6-digit sequence number, RPSID, used to control the electronic vouchers through OE/KV, Payment Perfection, and NDP600 Transport processing. The RPSID is printed on the bottom of the Batch Separator in MICR font for recognition through the NDP600 Transport, and in the upper right corner for operator recognition. Batch Separator, Forms 11355 (scannable), Exhibit 3.8.44–29 are used for scannable vouchers and remittances and are blank. The transport will assign the RPSID to those batches of work and print the RPSID on the Batch Separator.

The Form 1332C, Block Selection Record (Block Header), contains batch information, such as RPSID, tax period, MFT, etc., that is entered by OE/KV operators for generation into individual tax records. Based on the type of source documents, information will be entered into BBTS by program code, RPSID, transaction code, MFT, tax period, and transaction received date. Refer to Pre-Batch/Preparation of Form 1332C, Block and Section Record, Exhibit 3.8.44–19.

After the batch information is entered into BBTS, BBTS assigns an "ABC" to the batch of work, generates and prints Form 2345, Pre-Batch Transmittal. Refer to Pre-Batch/Preparation of Form 2345, Batch Transmittal, Exhibit 3.8.44–21, and Form 1332C, Block Selection Record (Block Header).

The Form 2345, Batch Transmittal, is used by the OE/KV operators to sign out individual batches of work for original entry and key verification.

For each batch of like work, the Form 11356, Batch Separator and Form 1332C, Block Selection Record (Block Header) are associated matching the RPSID's. Place the forms on the work to control the source documents and remittances throughout payment processing.

Remittances delivered to the Prebatch function, from Extraction and Payment Perfection, are sorted by type of tax and form number.

To the extent possible, combine small groups of like source documents to create larger batches of work. In order to maximize batch volumes, different types of work, as long as returns are mixed, may be input under a single program number not designated for their specific use. For example, IMF and BMF payments of all types may be entered under program 45500, as long as the MFT code and other differing fields are input for each transaction as they change. Processing work in this manner is acceptable and preferred since the ISRP program number is not output to other systems.

Non-scannable vouchers should be sorted by MFT.

Multiples and Splits are sorted separately from all other types of work.

Maintain the FULL PAID/Other Than Full Paid (OTFP) sorts for Forms 1040, 1040A, 1040EZ and 1040PC throughout payment processing.

Forms 940V, 940VEZ, 941V, 943V and 1040V preprinted, scannable payment vouchers will be routed directly to the NDP600 Transport for processing.

Scannable vouchers and notices should be sorted by scan line position. Be sure the remittances are behind the vouchers or notices before delivery to the NDP600 Transport for processing.

The RPS Prebatch clerks will be responsible for getting the work ready for input into RPS. The clerks will perform the following activities:

Work should be batched by RPSID range according to their source of origination for timeliness tracking on Remittance Transaction Research (RTR) as follows:

BBTS will be used to generate and print the Forms 2345, Batch Transmittal, and Forms 1332C, Block Selection Record, for RPS input, keeping track of the ABC's and RPSIDs to prevent duplication. Use Exhibit 3.8.44–28, Masterfile/Non-Masterfile Forms/Program Table, Exhibit 27-Program Code Table, Exhibit 20-MFT Codes That Can be Combined, and RPSID Range, listed above, for preparing the work and entering information into BBTS.

After the block headers, batch separators, and batch transmittals are associated with the work for RPS processing, the RPS Prebatch clerk will route the work to the OE/KV function.

The following scannable vouchers and notices must be sorted by scan line position and delivered directly to the NDP600 Transport for processing. Be sure the remittances are behind the vouchers or notices before delivering to the NDP600 Transport:

There are several source documents that require additional actions in order for the payment to be posted correctly or the source documents to be routed correctly. There may be other source documents not listed below that require additional instructions for routing. In those situations, refer to local procedures for additional information on proper routing.

Types of possible remittances the IRS may receive can include any of the following.

The remittance should remain with its source document; do not staple together. Prior to processing, check stubs and any staples should be removed.

If payee is IRS only, CASH, or blank, stamp United States Treasury on payee line. Refer to Table below.

When processing remittances intended as payment for photocopies of tax returns, refer to IRM 3.8.45.

When processing a taxpayer's returned refund check, refer to IRM 3.8.45.

When processing a Form 7803(c), refer to IRM 3.8.45.

For processing travelers cheques, refer to IRM 3.8.45.

Foreign checks may be processed through RPS when payable in US dollars through an US bank. The US bank's routing symbols and a nine digit routing number must be printed in MICR ink in the lower left corner of the check. If the check fails to meet any of these conditions, route to Manual Processing.

If remittance is not made payable to the United States Treasury or one of the acceptable payees listed below, pull the remittance and source document and route to the Payment Perfection Unit.

Mutilated remittances may not be accepted by financial institutions. See IRM 3.8.45 for specific procedures.

Totally blank remittances should be forwarded to Payment Perfection. A partially complete remittance may be processed, whether signed or not, if the money amount can be determined. As needed, follow the steps listed below to determine the money amount to use for deposit processing.

The numeric amount on the remittance will normally be used for processing unless there is an amount annotated above the remittance date line. When present, use this money amount for processing. There may still be times when the money amount to use is questionable. The following table should be used to determine the payment amount:

A canceled check should be processed as follows:

Seized checks may be processed with proper endorsement. If in doubt or if the endorsement is missing, route to Payment Perfection.

Remittances of $100 million or greater cannot be processed through RPS. The remittance and related source material should be given to manager or designee who will hand carry the item to Payment Perfection.

Unacceptable Payment of Taxes are items that the Federal Reserve Bank will not accept as payment. Any of the following items found in the Payment Perfection Unit should be hand carried to the Extraction Function to be secured in a locked safe:

A remittance found, with or without a source document, within the work area should be forwarded to the designated Deposit Unit personnel or pull out cart, as appropriate.

Campuses are receiving questionable remittances that resemble checks and money orders. In most cases, these remittances show the taxpayer and the "United States Bureau of Internal Revenue" as payees. The bogus remittances may include other identifying characteristics. Refer to Exhibit 3.8.44–1, Bogus Check. DO NOT PROCESS ANY REMITTANCES CONTAINING THE FOLLOWING CHARACTERISTICS:

The majority of the bogus remittances are received by certified or registered mail. They may be accompanied by the following documents:

Upon receipt of a suspicious remittance, process using the following procedures: