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Part 3. Submission Processing

Chapter 8. Deposit Activity

Section 45. Manual Deposit Process

3.8.45  Manual Deposit Process

3.8.45.1  (02-01-2008)
Introduction Scope

  1. This section provides administrative directives and processing procedures for remittances in Campuses' Deposit Operations. Administrative directives include cash management, managerial product review, security, and reporting responsibilities.

  2. Obsolete forms and/or documents are mentioned throughout this IRM. Although these forms/documents are obsolete, campuses may occasionally continue to receive them with payments of taxes.

  3. All employees and managers of the Deposit Function must familiarize themselves with the following manuals to ensure accuracy, timely deposits, and adherence to internal controls:

    1. 1.16.12, Facility and Property Protection

    2. 3.0.167, Losses and Shortages

    3. 21.3.3, Taxpayer Contacts--Incoming and Outgoing Correspondence Letters

    4. 1.15.29, Records Control Schedule for Campus Operations

    5. 1.16.0, Physical, Document, and Computer Systems Security

    6. 3.30.123, Processing Timeliness; Cycles, Criteria and Critical Dates

    7. 3.24.133, Residual Remittance Processing System

    8. 3.10.72, Extracting, Sorting and Numbering

    9. 1.16.15, Minimum Protection Standards

    10. 3.8.44, Campus Deposit Activity

    11. Document 6209, IRS Processing Codes and Information

    12. 3.8.46, Discovered Remittance

  4. In addition, managers of the Deposit Function must also be familiar with:

    • IRM 1.4.6, Resource Guide for Managers-Managers Security Handbook

    • IRM 1.16.1, Physical Security Standards

  5. Adherence to remittance policy and procedures is required, unless a deviation is granted in writing. Deviations must be requested in writing and signed by Field Director, Submission Processing of the requesting site. Send to Director, Submission Processing. Deviation requests must include the specific IRM reference, background, and reasons why a deviation is requested.

3.8.45.1.1  (02-01-2008)
Cash Management Responsibilities

  1. 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 maintain 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. IRM 3.8.45.6.34.

    Note:

    Remittances received on Saturday, Sunday and holidays need not be deposited until the next business day (the day following the weekend/holiday).

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

  3. 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.

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

  5. During the following mini-peaks or when the remit receipts, in the deposit function, exceeds the deposit capacity, the deposit cycle may be extended two business days. However, the extended cycles must not exceed 5 business days. See IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates.

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

  7. Schedule two deposit pickups during peak. Daily scheduled receipts must be based on prior year actual receipts.

  8. In the event there will not be a deposit or if the dollar amount of the deposit will be significantly affected due to an unplanned situation or event, the Operations Manager for Receipt and Control or designee must immediately inform the Headquarters Deposit Analyst, Cathy Andrews 816–325–3872 or Ricky Holmes at 816–325–3861 as soon as it becomes evident there will not be a deposit for the day. When deposit operations resume, inform the Deposit Analyst of the item count and dollar amount of the next deposit. You must also include if you are back on your 24-hour deposit cycle and, if not, when you expect to be timely. Headquarters contacts are listed on the Submission Processing website. If unable to contact the designated Headquarters Submission Processing analyst, please call FMS: Michael Mackay at 202-874-6892 first or Craig Sadick, backup, at 202-874-6754.

  9. The Campuses must provide a yearly plan on how they will expedite the identification and depositing of large dollar remittances during the peak filing season. After developing a plan to expedite the large dollar remittances, send the plan to the following address:

    Internal Revenue Service
    5000 Ellin Road
    Room C5-121
    Lanham, Maryland 20706
    Attn: Deposit Analyst SE:W:CAS:SP:BMF:SCA

3.8.45.1.2  (02-01-2008)
Managerial Responsibilities (Product Review of Final Deposit)

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

    Note:

    OUT-OF-BALANCE CONDITIONS MAY NOT BE RELEASED TO DEPOSITARIES.

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

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

  4. After Pass 2 on the transport, fan the lower right corner of the block of remittances verifying 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.

  5. 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.

  6. Prepare an action plan for conducting the reviews.

    1. Schedule review dates. (The same day of week should not be used on a regular basis. If there is more than one shift, include the various shifts.)

    2. Initiate action if the 24-hour deposit cycle is missed.

    3. Record any unbalanced blocks, slipped blocks, encoding errors, piggy back checks, etc.

    4. Provide employee feedback.

    5. Provide additional training if necessary.

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

3.8.45.1.3  (02-01-2008)
Security Responsibilities

  1. Deposit managers must communicate all security standards contained in IRM 1.16.12, Facility and Property Protection, to their employees at least once a year. All employees and managers of the Internal Revenue Service and Treasury are accountable for remittances under their control, including security.

  2. Deposit managers must ensure adherence to all security standards and internal controls in IRMs: IRM 1.16.12, Facility and Property Protection; IRM 1.16.15, Minimum Protection Standards; IRM 1.16.11, Basic Security Concepts; IRM 1.16.3, Safeguard Reviews; and IRM 1.16.13, Information Protection; and this manual. Interim guidance and procedures regarding physical or remittance security must be implemented immediately. Interim guidance or procedures may be issued through official memorandums or by Submission Processing web site Hot Topics.

  3. Adequate security equipment and facilities must be provided to safeguard money, securities, etc., handled in the Deposit Activity Function. Managers will contact appropriate AWSS Security Representative, or Campus' Security Function for additional advice or assistance on security matters (refer to IRM 1.16.12, Facility and Property Protection). Money chests, vaults or cabinets affording adequate security must be available in restricted area of Campus' Deposit Activities. These containers must comply with requirements contained in IRM 1.16.12, Facility and Property Protection.

  4. The following items are strictly prohibited from the secure Receipt Processing area:

    • Lunch bags

    • Boxes

    • Purses

    • Backpacks

    • Briefcases

    • Sports Bags

    • Bulky Outerwear

    • Hats

    • Shopping Bags

    • Shoulder Totes

    • Fanny Packs

    • CD or Tape Cases

    • Books

    • Newspapers, magazines, and similar type items

      Note:

      The use of the cameras or camera capability on cell phones is prohibited in the secure remittance processing area.

  5. Random Reviews of All Persons in the Secured Area. First line managers or a designated representative will conduct and document monthly random reviews of employee compliance with all security policies as they relate to personal belongings and usage of camera cell phones in the secure remittance processing areas. The reviews must include each employee at least once during the month. The review will be completed at the beginning of the shift and/or upon entrance to the secure receipt processing area. Management shall maintain documentation that includes the date, unit number, employee name, description of item(s) found (if no findings, mark "None" on the review check sheet) and the reviewer's initials. See Exhibit 3.8.45-5.

  6. Provide each teller/cash clerk with a separate lockable money bag, cash box, or compartment. Each container should be equipped to be opened only by a separate key or combination.

  7. The teller/cash clerk or remittance perfection technician will lock the safe, vault, money chest, or other receptacle or facility provided therein to store funds or other valuables including the door of the teller's/cash clerk's working area whenever the working area is left unattended, refer to IRM 1.16.12, Facility and Property Protection.

  8. The combination and/or duplicate key to lock money chests, vaults, cabinets, money bags, cash boxes or compartments, in which funds are held, will be placed in a sealed envelope for use in the event of an emergency. The envelope (Part III of Form 4032) containing a combination and/or duplicate key must be stored under the same protection required for container. The procedures to be followed are the same as Field Office Remittance Processing Area, refer to IRM 1.16.12, Facility and Property Protection.

  9. Change the combination or locks on all containers immediately when one of the following conditions exists:

    1. Upon receipt of new lock

    2. Whenever there is a change in teller/cash clerk

    3. When there is an unforeseen absence of the teller(s)/cash clerks/ or any remittance processing individual entrusted with the combination or lock

    4. When the combination is suspected to be compromised in some other way

    5. In any event, change combinations at least once a year.

  10. If it becomes necessary to open a teller's/cash clerk's locked compartment in the absence of the teller/cash clerk, two responsible employees will be selected to use duplicate key or combination. They must count the money and prepare a statement of the money and documents found. Both must sign and attach the statement to the receipt that the teller/cash clerk previously signed for the change fund. The monies and documents are then balanced.

  11. Safeguard cash remittances at all times. Keep cash in a locked container or deposit bag to await deposit pick-up after teller's/cash clerk's balancing operation is completed. The key to that container is held by the teller's/cash clerk's immediate manager or other designated employee. Cash conversion to cashier's check or money order are permitted. Use this action in lieu of safeguarding instructions.

  12. The deposit manager or designated employee must conduct periodic unannounced reviews of the items on the Cash Receipts Records and Deposit Tickets monthly, or no less than quarterly. Record when the reviews are completed and the findings. Maintain the records of completed reviews for a year at minimum and include whether an in-depth review is necessary.

  13. Only authorized employees may have access to cash vaults. Restrict all areas in which deposit operations take place in accordance with IRM 1.16.12, Facility and Property Protection. Any person entering must be given appropriate clearance from a responsible official. Such clearance must be based on satisfactory identification of individual(s) and appropriate reason for entering.

  14. Managers should report any employee or manager suspected of theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484 immediately. Employees should report any employee or manager suspected of theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484.

  15. Managers of areas receiving Discovered Remittances must perform monthly reviews of Discovered Remittance Logs, Forms 4287, and take appropriate action to eliminate or reduce mishandling of receipts.

  16. Use of IRS computer equipment and systems such as IDRS require conformance to security rules. Mandatory briefings are conducted annually regarding these requirements.

  17. The Service requires internal control of tax receipts to ensure security during transit. On rare occasions, Submission Processing Centers transship remittances via common carrier for processing. Rare cannot be overemphasized! Nearly always, tax receipts must not leave the secured area; rather SPCs are required to process tax receipts on the day of receipt. An example scenario of transshipping a tax receipt (remittance, taxpayer payment) would be a site needing to transship a foreign remittance to a bank for processing. All senders of tax receipts are required to use overnight traceable method to send tax receipts. The use of a completed transmittal, such as Form 3210 Document Transmittal, listing package contents, is required. The name of the sender, return address (with stop number), and telephone number is required on all transmittals. The sender, who is accountable until the funds are received at the destination, must establish a control to ensure delivery of tax receipts and follow up. The control must include amounts of taxpayer receipts by taxpayer identification number (TIN) correlated to the package tracer information. For example, if the transit provider informs IRS that package number 12345-67-89 was destroyed, a control is needed that enables proper identification of impacted taxpayer(s) so that relief can be granted. The sender must follow-up within 2 business days to ensure delivery of the remittance package. Access the carrier's website, i.e., ups.com, or usps.com and trace the package. Follow up with the destination contact within 10 working days if necessary. Immediately report all lost remittance packages to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1–800–366–4484. Lost or stolen remittances must also be reported to the campus remittance security coordinator. Lost personally identifiable information (PII) must also be reported to the Computer Security Incident Response Center (CSIRC) at 1–866–216–4809.

  18. All Service employees must take care to protect personally identifiable information (PII). Any loss of PII could result in information being compromised to perpetuate identity theft. PII information must be encrypted on computers, e:mail. Sanitize taxpayer PII or use secure messaging. If you suspect or know of a potential information loss, report it to your manager, the Treasury Office of Investigations (TIGTA) at 1–800–366–4484, and the Computer Security Incident Response Center (CSIRC) at 1–866–216–4809.

3.8.45.1.4  (02-01-2008)
Security of Forms 809 Receipt for Payment of Taxes

  1. Managers of Remittance Processing Operations have specific responsibilities relating to the security, internal control, issuance, and disposition of Forms 809, in addition to the care that must be given any remittance handling. Forms 809 must be handled with the same care and precision as cash. The following procedures are required when handling Form 809.

    1. Forms 809 are pre-numbered with letter prefixes and issued in numeric sequence. Each series of letter prefixes must be completely exhausted before a new letter prefix is used.

    2. Assignment of Forms 809 must be authorized in writing, prior to issuance of a Form 809 book. Keep authorizations in the front of the 809 part 3 audit file. See IRM 3.8.45.29.11 for files requirements for 809 Part-3 files. Retain authorizations on file as basis for subsequent book assignments as necessary for respective employees.

    3. Officials authorizing issuance of an 809 book must be designated by Field Director, Submission Processing at least once a year.

    4. Accountability and control of unissued receipt books must be assigned to one individual at the Submission Processing site, with an appropriate backup individual. This individual will keep a record of blank Forms 809 by serial number and disposition, in the 809 Database.

    5. Individuals, who are authorized to issue Form 809 receipts, may not be responsible for inventory control of unissued Forms 809 and may not be responsible for reviewing the completed receipts of others or themselves. Separation of these duties is required for strict internal control.

    6. Individuals assigned Form 809 books may not share the book with others. Once a book is assigned, it is for the exclusive use of the employee to whom assigned. Managers may not allow transfer of an 809 book once assigned by the designated Field Office Payment Processing function.

    7. Each assigned individual's Form 809 book must be stored in a separate locked security container, then stored in a locked container. Refer to IRM 1.4.6.5.1(3).

    8. Official receipts may not be used for training purposes.

      Note:

      Photocopies of sanitized receipts without serial numbers may be used for training.

    9. To void a receipt, when necessary write "VOID" across the face of all copies. Enter reason for voiding on the reverse of Copy 1. Voided Forms 809 are then returned to the Field Office Payment Processing function.

    10. Periodic reviews of individually assigned Form 809 books should be conducted,

    11. At least once a year, a pre-verification of employee information and annual reconciliation will be conducted to ensure all receipts are accounted for.

    12. Keep a log of all receipts issued to any walk-in-taxpayers.

      Note:

      Issuance of receipts at campuses to walk-in taxpayers is only allowed on a rare exception basis, as approved by Field Director, Submission Processing.

      .

  2. The inventory of unissued Forms 809 must be verified by physical count and serial number by a manager without responsibility for Form 809 books, at least once each quarter. The manager conducting the inventory must take a physical count of books on hand by serial number. The manager's count must be witnessed by at least one other person. The manager will compare the physical count and serial numbers to the amounts and serial numbers listed on the 809 Database. Provide the manager verifying the inventory including documentation to support transference of inventory to or from another site, manifests from the Multimedia's contracted vendor or National Distribution Center showing any changes to inventory, and any other changes to the inventory (books issued to employees, etc.) In addition, provide a quarterly inventory list from the 809 Database. A sample report is provided in Exhibit 3.8.45-106. A report will be prepared and maintained in a permanent file in Receipt and Control. The report must contain the:

    1. Date of the inventory review,

    2. Count of unissued full books and the number of receipts by serial number.

    3. Reconciliation of any discrepancies between the physical count and the detailed counts by serial number,

    4. Name and original signature of person conducting the inventory review.

    5. Name and original signature of person witnessing the physical count of the inventory.

    Campus employees who are assigned to issue official receipts to taxpayers for cash mailed into the campus are considered field office employees for purposes of internal controls surrounding Form 809 Receipt for Payment of Taxes. See 3.8.45.26 Field Office Remittance Processing for other information regarding Forms 809 for field office employees, internal controls, and lost or stolen Forms 809.

  3. Unissued Forms 809 must be secured in high level security locked containers that were provided by Headquarters. Limit accessibility to the unissued forms, and keep the secure container locked when not in use. For example, if you are filing Forms 809 and have to leave the cabinet, lock the cabinet, and open again when you return.

3.8.45.1.5  (02-01-2008)
Separation of Duties and Form 809 Receipt for Payment of Taxes

  1. Managers must ensure that only appropriate employees have 809 books and that employees with 809 books have only research command codes in their Integrated Data Retrieval System (IDRS) profiles.

  2. Use of the Automated Command Code Access Control System is required to ensure Form 809 book users IDRS profiles are restricted. When managers authorize an employee to have an 809 book, they must activate or simultaneously contact the IDRS Unit Security Rep. to activate command code RSTRK (Restrict) with Definer R (809 book users).

  3. A command code is considered "sensitive" if it can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability. Sensitive command codes are in Exhibit 10.8.34–5..

  4. Managers must also ensure that employees with responsibility for issuing tax receipts to taxpayers are not assigned to control the 809 inventory or to review completed 809s.

3.8.45.1.6  (02-01-2008)
Reporting Responsibilities

  1. The Daily Deposit Report (DDR) is used to monitor the campuses total daily deposits.

    1. The DDR should contain the deposit date, ISRP deposit volume and amount, manual deposit volume and amount, and the total volume and amount of the combined deposits.Exhibit 3.8.45-2.

  2. Daily, campuses must email the current day's Daily Deposit Report to Financial management Service (FMS) with a "cc" to Headquarters by Close of Business. (For example, deposit data for Tuesday must be emailed to FMS and HQ by COB Tuesday.) Forward the report to the following email addresses:

    1. FMS: receipts@do.treas.gov.

    2. Headquarters: *HQ Campus Accounting (on the global address directory).

  3. Immediately contact Cathy Andrews, Headquarters Manual Deposit Analyst, at (816)-325-3872r via email at cathy.r.andrews@irs.gov when these reporting requirements cannot be met.

3.8.45.1.7  (02-01-2008)
Weekday/Weekend Reporting

  1. The deposit function is required to report total dollars and items deposited to Headquarters and Treasury on a daily 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).

  2. When the deposit function works weekends, you must report Monday morning the total dollar amount and item count that was processed on Saturday and Sunday.

  3. Deposits made on Monday, Tuesday, Wednesday and Thursday must be reported the following day. For example, Tuesday's deposit will be reported Wednesday morning; Wednesday's deposit reported Thursday morning, etc.

  4. Friday's deposits must be reported the following Monday.

    1. Some sites process Friday evening receipts with the following Monday's or Tuesday's Julian Date. When this is done, Friday's amounts and volumes must be included with Monday's or Tuesday's Receipts. If Monday is a holiday, Friday's amounts and volume must be included with Tuesday's receipts.

3.8.45.1.8  (02-01-2008)
Holiday Reporting

  1. 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.

  2. When Monday is a holiday, Tuesday's deposit report must include any deposits made on Saturday, Sunday, and/or Monday and Tuesday. Forward via email on Wednesday morning, the total dollars and items deposited on Tuesday. Transmit a single total deposit and volume amount for the entire period.

  3. When the holiday is Tuesday, Wednesday or Thursday, the next day's deposit must include the holiday and the reporting day. Transmit a single total deposit and volume amount for the entire period.

  4. When the holiday is on Friday, Monday's deposit must include Friday, Saturday, Sunday and Monday. Transmit a single total deposit and volume amount for the entire period.

3.8.45.1.9  (02-01-2008)
Losses and Shortages

  1. When a manager or an employee becomes aware of a loss or shortage, including a breach of personally identifiable information (PII), the loss or shortage must be reported immediately.

  2. The manager will obtain a statement within 5 workdays from the employee who discovered the loss or shortage. The report will contain the following items.

    1. Date the loss occurred or was discovered.

    2. The amount of loss or shortage.

    3. The type of tax or fund in which loss or shortage occurred.

    4. The circumstances involved with loss or shortage.

    5. The employee's signature, position, title, and the date the statement was prepared.

  3. Managers will prepare a statement, to the best of their knowledge, pertaining to loss or shortage. The statement will contain the following items.

    1. Attempts to reconcile differences.

    2. Determination of negligence.

    3. Any other pertinent information.

  4. The Operations Manager, Receipt and Control, is responsible for notifying the Territory Manager or Department Manager and Campus' Director to contact TIGTA Office of Investigations at 1-800-366-4484 if thefts or embezzlements by employees are suspected; the local Security function, if loss is caused by robbery, burglary, or through casualty; and/or the Secret Service, if loss involves counterfeit money still in possession of IRS. Lost or stolen personally identifiable information must also be reported to the Computer Security Incident Response Center at 1–866–216–4809.

    Note:

    Anytime TIGTA is contacted, also notify the Submission Processing Planning and Analysis Remittance Security Coordinator.

  5. Prepare and transmit a preliminary report within 10 workdays to Chief, Service Center Accounting, SE:W:CAS:SP:BMF:SCA, Headquarters Submission Processing, when a loss is caused by apparent embezzlements, robberies, or other discrepancies. The report must include documentation covering circumstances of loss, recommendations for corrective action, if any, and a copy of the Inspector's report.

  6. Provide a copy of the loss report to the Campus' Accounting Operations within 10 workdays.

  7. Procedures for requesting relief and more detailed loss information are contained in IRM 3.0.167, Losses and Shortages.

3.8.45.1.10  (02-01-2008)
Depository Bank

  1. 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).

  2. The affected campus will be requested to submit requirements in memorandum form, detailing the specific items necessary for a good working relationship. This memorandum will become a part of the bid process and should include (as specified in I TFM 6) statistical data, deposit characteristics, balancing issues, a list of IRS officials and managers, and any local issues.

  3. The first part of the statistical data required, will be taken from a two week period preceding the preparation of the memorandum. The data will contain the following elements.

    1. A listing by check routing number.

    2. Total volume and dollar amount of checks.

  4. The second part of the statistical data will be taken from the preceding 12 months. The data will contain the following elements.

    1. Daily dollars and items deposited for the preceding 12 months.

    2. Daily number of debit vouchers and deposit tickets processed.

    3. Total dollars and items of returned checks processed.

  5. Certain deposit characteristics required to be in the memorandum will include the following elements.

    1. Depository pick-up time(s).

    2. Peak/non-peak period definitions.

    3. Deposit package definitions, e.g., deposit tickets and related deposit categories, as well as block totals, fasteners, packaging, etc.

  6. The memorandum will contain procedures for balancing the deposits. The procedures should cover the following elements.

    1. Missing remittances procedures.

    2. Dishonored check procedures.

    3. Timely submission of debit vouchers or supplemental deposit tickets procedures.

  7. The memorandum will contain a list of IRS officials and managers, position titles, description of area of responsibility, and phone numbers.

  8. The memorandum will contain any local issues, e.g., deposits of currency, courier service, sorted/unsorted checks (in-city/out-of-city).

  9. When the Director, Funds Flow Division within FMS, approves a bank as a depositary, notification will be sent to the bank and to the Business Operating Division. The Operating Division will notify the Campus' Director. The campus will then begin depositing in the newly authorized depository on the date agreed upon. When available, Campuses will be provided a copy of pertinent portions of the contract.

  10. If a Field Director, Submission Processing desires to discontinue the use of a designated depositary, the request will be sent to Headquarters Submission Processing, Attention: Chief, Service Center Accounting SE:W:CAS:SP:BMF:SCA, for transmittal to Financial Management Service.

3.8.45.1.11  (02-01-2008)
Courier Service Minimum Requirements

  1. All bonded courier service contractors must understand and adhere to the following language:
    As an independent contractor, (courier company name), under contract with the Financial Institution or Submission Processing Center, I fully understand that much of the information that is provided to (courier company name) and its employees is privileged and legally and administratively restricted and falls under the provisions of the Privacy Act of 1974 and the Internal Revenue Code (IRC) Sections 6103, 7213 and 7431. The Privacy Act, the Safeguards, and the Criminal/Civil Sanctions paragraphs specify (courier company name) responsibility and liability regarding disclosure of this information. At the expiration of (courier company name) contract with the financial institution or Submission Processing Center, (courier company name) is required to return all documents in its possession to the Internal Revenue Service.

3.8.45.1.11.1  (02-01-2008)
Courier Service Requirements and Responsibilities

  1. Shall ensure that courier service is bonded/licensed and that the employees designated to transport Internal Revenue Service deposits and/or requiring access to Internal Revenue Service sites:

    1. Satisfy the requirements for a Low Risk Investigation, which includes an FBI fingerprint and name check, as defined in IRM 1.23.2..8.1.1and conducted by IRS personnel.

    2. Be a U.S. citizen or have Lawful Permanent Resident Status (LPR).

    3. If immediate family members are employed as couriers for the same courier service, these employees must complete the Courier’s Additional Disclosure Statement. See Exhibit 3.8.45-30.

  2. The Courier Additional Disclosure Statement (CADS) must be completed by each courier employee and must include:

    1. Name(s) and relationship(s) of all members who perform courier duties. If no other family members perform courier duties, write "NONE " in large letters in the space where family member's name(s) are to be shown on the CDAL.

    2. Printed or typed name of the courier.

    3. Signature of the courier.

    4. Signature of courier service authorizing official and date.

    5. The disclosure statement must be updated annually or when a change of status occurs.

    6. Designated SPC must be notified within 24 hours of a change in a courier’s status.

  3. The Government has broad authority to interpret the scope of " immediate family" in this context. Generally, immediate family members refer to parent, spouse, child, step-child, foster child, step parent, half siblings, siblings, and foster parent. However, when couriers who are related, the definition of "immediate family" may be broadened and prohibitions extended to include others (e.g., grandchildren, sons-in-law, daughters-in-law, first cousins, and other second generation family members).

  4. Shall provide the Internal Revenue Service with two (2) contact names (a primary and an alternate), telephone numbers, and pager/cell phone numbers, if applicable. Also, the courier service must provide the Internal Revenue Service with a 24-hour emergency telephone number and name of the person to contact during non-business hours. The courier service must notify the Internal Revenue Service within 24 hours of any change in contact persons and/or telephone numbers.

  5. Shall provide a monthly Courier Deposit Access List (CDAL) and copies of all Courier Additional Disclosure Statement (CADS). The CDAL must be of courier service employees designated to transport Internal Revenue Service deposits, on a signed contractor's official dated letterhead, with the following information:

    1. Employee's Typed Name

    2. Employee's Title

    3. Employee's Signature

    4. Employee's Social Security Number

    5. Employee's Photograph

  6. Shall ensure the CDAL and the CADS are current by notifying the designated Submission Processing representative or alternate within 24 hours, by facsimile transmission:

    1. When a courier service employee who appears on the CDAL has been discharged from his/her duties.

    2. When a new courier service employee has been hired to provide the services specified herein with the same information as required for the CDAL.

    3. When a courier has experienced a change that will affect their relationship status, the CADS must be updated.

  7. Shall provide each courier service employee with a printed and laminated identification card containing the following information that is consistent with the CDAL information provided to the agency:

    1. Employee's Typed Name

    2. Employee's Title

    3. Employee's Signature

    4. Employee's Photograph

    5. Company Name

  8. Shall ensure that all courier service employees:

    1. Display (on their person) the picture identification card that clearly identifies them as authorized messengers for the courier service.

    2. Wear company logo uniforms.

  9. Shall ensure on a continuous basis that:

    1. Two courier service employees who appear on the CDAL are provided for each deposit pickup from the Submission Processing Center and delivery to the depository.

    2. The two courier service employees are not related by checking their names against the CADS.

    3. The courier vehicle being used to transport deposits must always be locked and secured whenever IRS data is contained within the vehicle until it reaches its destination.

    4. The vehicle must always be under the supervision of one of the couriers and never left unattended.

    5. The IRS prohibits any deposit packages and/or containers to be transported by walking or by bicycle.

    6. Courier service employees must review to ensure information on Form 10160, Receipt for Transport of IRS Deposit, is accurate by verifying package seal numbers on mailbags and sign to take possession of the deposit.

    7. Agency deposits are not transferred to another courier service employee or courier service vehicle after the deposits are picked up. Exception: In emergency situations, such as in the event of vehicle breakdown, the courier service employee must immediately notify the Internal Revenue Service and Bank. This is true whenever established schedules/time-frames cannot be met. The courier must also notify the Internal Revenue Service within 1 hour of an accident or the theft, loss, or destruction of government property being transported. To ensure this notification can be made promptly, courier vehicles must contain appropriate Internal Revenue Service Submission Processing Center contact names/phone numbers, and radio or telephone equipment.

    8. Agency deliveries are dedicated to the Internal Revenue Service and no other packages will be transported with IRS packages in the same vehicle. The area of the vehicle in which the agency packages and/or containers are placed must be clean, debris-free and without containers, materials such as canvas or plastic used to cover or protect articles, or other items.

    9. Delivery of agency packages and/or containers occurs on the same day. Overnight delivery of agency packages and/or containers is not permitted.

    10. Upon delivery of the packages/containers to the designated commercial/TGA depositary, the courier service employee must obtain the signature of the person receiving the deposit, the date and time on Form 10160, Receipt for Transport of IRS Deposit. Upon delivery of packages/containers to the designated FRB depositary, the courier service employee must obtain a date and time stamp on Form 10160 since a bank employee will not be available to sign the form.

    11. The courier service must immediately notify the Internal Revenue Service and Bank when established schedules/time-frames cannot be met. The courier must also notify the Internal Revenue Service within 1 hour of an accident or the theft, loss, or destruction of government property being transported. To ensure this notification can be made promptly, courier vehicles must contain appropriate Internal Revenue Service Submission Processing Center contact names/phone numbers, and radio or telephone equipment.

  10. Shall ensure that courier service vehicles provided for the purposes of satisfying the conditions specified herein meet the following requirements:

    1. The vehicles are maintained in good condition, appearance and working order.

    2. The vehicles must be state-registered and meet the minimum safety standards of the licensing state.

    3. The vehicles must be steel framed and doors must be able to be secured from both inside and outside.

    4. The area of the vehicle in which the agency packages and/or containers are placed is clean, debris-free and without containers, materials such as canvas or plastic used to cover or protect articles, or other items.

    5. All IRS deposits must be transported within the locked area of a vehicle (such as the cab or trunk). "Locked area" does NOT include any container of any sort in the bed (back) portion of a pickup truck or any open bedded vehicle (with or without a camper shell) whether or not such shell or container is locked or otherwise secured.

  11. Shall provide ad-hoc pickups for large dollar remittances when notified by the designated IRS Submission Processing representative or designee. This does not apply to the Fresno Submission Processing Center.

  12. Shall ensure that a courier service employee returns by the next business day:

    1. The original Form 10160, Receipt for Transport of IRS Deposit, with bank's received date, time of receipt, name and signature of bank representative who received the deposit at a commercial/TGA bank or with the bank's date and time stamp only if the deposit was made at a FRB that does not have an employee available to sign the Form.

    2. All mailbags and/or boxes, except plastic bags.

  13. Shall ensure that the company has and maintains insurance coverage valued at $1,000,000 to cover the costs to reconstruct a lost, stolen or destroyed deposit made payable to the following:

    1. Internal Revenue Service if the Submission Processing Center holds the contract with your courier company (you deliver the deposit to a Federal Reserve Bank).

    2. Commercial Bank, also called a Treasury General Account (TGA) bank, for the benefit of the Internal Revenue Service if the Submission Processing Center contract is held through the Financial Management Service with the courier service contracted by the Commercial Bank (you deliver the deposit to a Commercial Bank).

  14. Shall provide bonding or insured certifications to the following:

    1. The Internal Revenue Service Contracting Officer's Technical Representative (COTR), if the Submission Processing Center holds the contract with your courier company (you deliver the deposit to a Federal Reserve Bank).

    2. Financial Services Division, Financial Management Service, if the Submission Processing Center contract is held through the Financial Management Service with the courier service contracted by the Commercial Bank (you deliver the deposit to a Commercial Bank).

  15. Shall provide within 30 days of receipt of these new requirements or prior to implementation of a new contract with a Disaster Contingency Plan. The contingency plan must address what alternative actions the courier will implement to fulfill its obligation in the event of employee strikes, inclement weather, natural disaster, traffic accident and unforeseen events. This plan will be provided to the following:

    1. The Internal Revenue Service COTR, if the Submission Processing Center holds the contract with your courier company (you deliver the deposit to a Federal Reserve Bank).

    2. The Financial Services Division, Financial Management Service, if the Submission Processing Center contract is held through the Financial Management Service with the courier service contracted by the Commercial Bank (you deliver the deposit to a Commercial Bank).

3.8.45.1.11.2  (02-01-2008)
Receiving Bank Employee Requirements and Responsibilities

  1. Upon receipt of the deposit package, the receiving bank employee will examine the deposit package for any obvious indication of tampering during transport. The receiving bank employee will then:

    1. Match volume and seal numbers on mailbags to Form 10160.

    2. This procedure applies to all depositaries except FRBs that monitor deposit deliveries remotely. If all seal numbers agree and are intact, the receiving bank employee will complete the receipt portion of Form 10160 by annotating the date, time of receipt, receiving bank employees name and signature, and give an original and one copy to the courier, who will return the original receipted Form 10160 to the Submission Processing Center by the next business day.

    3. If the seal numbers do not agree, then the receiving bank employee must immediately notify the designated Submission Processing Receipt & Control Operations Manager or designee and follow established bank procedures.

3.8.45.1.11.3  (02-01-2008)
Submission Processing Centers Receipt & Control Requirements and Responsibilities

  1. Must ensure that courier service employees designated to transport Internal Revenue Service deposits and/or requiring access to Internal Revenue Service sites:

    1. Satisfy the requirements for a Low Risk Investigation, which includes an FBI fingerprint and name check as defined in IRM 1.23.2..8.1.1 and conducted by IRS personnel.

    2. Be a U.S. citizen or have lawful permanent status.

    3. If immediate family members are employed as couriers for the same courier services, these employees must complete the Courier's Additional Disclosure Statement (CADS). See Exhibit 3.8.45-30.