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Part 3. Submission Processing

Chapter 8. Deposit Activity

Section 45. Manual Deposit Process (Cont. 1)

3.8.45  Manual Deposit Process (Cont. 1)

3.8.45.4 
Payment Perfection Procedures

3.8.45.4.19  (02-01-2008)
Payment Posting Vouchers (Non-RRPS)

  1. A Payment Posting Voucher must be prepared whenever a source document is not available and the payment cannot be processed through RRPS. A list of payment posting vouchers follows:

    1. Form 3244, Payment Posting Voucher.

    2. Form 809 Posting Vouchers.

    3. IDRS Printout used in lieu of Form 3244.

    4. Correspondence

    5. Form 4907 (Taxpayer Delinquent Account)

    6. Taxpayer Envelope with name and address.

3.8.45.4.20  (02-01-2008)
Mutilated Checks

  1. Rarely, mail-opening equipment may mutilate checks during processing. When this occurs, remittance processors should tape the check back together, place in a transparent sleeve, and deposit manually. The financial institution will determine if a mutilated check can be processed. If it cannot be processed, the check will be returned to IRS by the financial institution and processed by the Dishonored Check function as outlined in IRM 3.17.10. Additional guidance on mutilated checks is listed in the table below:

    If ... Then ...
    The payment voucher or accompanying information is unclear Follow IDRS Presearch procedures.
    The condition of the mutilated check precludes identification of the taxpayer, and there is no posting information Credit the payment to the Unidentified Remittance File.
       
    The remittance is not repairable/processable and there is insufficient information to contact the taxpayer Turn the remittance over to the Operations Manager of R&C to destroy.

3.8.45.4.21  (02-01-2008)
Returned Refund/Rebate Government Checks for Payment of Taxes

  1. Payment Perfection Unit (PPU) will receive all Government Checks from the Extraction Unit that have been stamped below the "Pay to the order of" line with the following statement "UNLESS FOR CREDIT TO THE UNITED STATES TREASURY, THIS INSTRUMENT IS NON-NEGOTIABLE"

  2. PPU must separate the valid government checks for payment of taxes from the returned refund checks.

  3. To determine if the remittance is a valid government check for payment of taxes use the following rule:

    Note:

    All remittances where the payee line is made payable to the United States Treasury, Internal Revenue Service, Commissioner, Department of the Treasury, Social Security Administration or variations of any agency or department of the United States Government should be construed to be a payment to the United States Government.

  4. Process the valid government checks for payment of taxes through normal processing.

  5. Forward the Returned Refund/Rebate Checks along with any document(s) to the Refund Inquiry Unit.

  6. If a Returned Refund/Rebate Check accompanies a valid payment of taxes process as follows:

    1. Prepare a posting document for the valid payment of taxes and process through normal processing.

    2. Forward the Returned Refund/Rebate Check(s) along with any document(s) to the Refund Inquiry Unit.

    Note:

    If a taxpayer returns their Advance Child Tax Credit (ACTC) Check to the IRS, please follow the same procedures as a Returned Refund Check.

3.8.45.4.22  (02-01-2008)
Basic Manual IDRS Research for Payment Perfection

  1. This section provides general guidance for only a few basic scenarios relative to Payment Perfection IDRS research. Refer to these instructions in the absence of the IDAP macro for payment research. Also, in this section are a few IDRS command codes that are required to be researched in order to apply a payment accurately. This is not an all inclusive list. It is intended only to provide a basic point to begin payment research. There will be situations when more extensive research may be required, for example, the procedures outlined in 3.8.45.10.2. Refer to ADP/IDRS handbooks, referenced IRMs and Job Aids for complete information. There is also much information on SERP: http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/idrs_command_codes_job_aid.htm The job aids on this site are viewable and easily printed.

    Scenario THEN IF IMF IF BMF
    IF Both IMF and BMF THEN THEN
    a. Payment Received with check only and the only identifying information is the name and address on the check. Research to whom the payment should be applied. Use: NAMEB and NAMEE for a BMF EIN. NAMEIand NAMES for an IMF SSN. Determine where(tax-period and MFT) and how (transaction code) the payment should be applied. Use:IMFOLI to display an index of all tax modules available for a SSN. IMFOLTdisplays specific tax module amounts, dates including CSED and a listing of posted transactions. Determine where(tax-period and MFT) and how (transaction code) the payment should be applied. Use: BMFOLI to display an index of all tax modules for an EIN. BMFOLT displays specific tax module amounts, dates including CSED and a listing of posted transactions
    b. Payment received and the only information available is the TIN. Use ENMOD to determine necessary entity information. INOLE displays name line information available for any TIN. INOLEXdisplays (SSA) name controls, cross-reference, and merge transaction information. Follow the THEN procedures in scenario a. above. Follow the THEN procedures in scenario a. above.
    c. Payment received with TIN, tax period and name of taxpayer. If SSN, go to IF IMF column. If EIN, go to IF BMF column. Apply payment to the SSN, tax period and tax form as indicated. Refer to Document 6209 or IRM 3.8.45.2.1 for appropriate transaction code. Apply the payment to the EIN and tax period and form type designated. Research BMFOLI/BMFOLT for appropriate MFT, if necessary. Refer to Document 6209 or IRM 3.8.45.2.1 for appropriate transaction code.
    d.Receive an ACS payment but the tax period is not indicated. Research SUMRYfor the earliest unexpired CSED that is not in status 10 or 12 and apply payment to the earliest unexpired CSED. Research TXMOD for specific IMF information for a particular module including pending transactions and SFR indicators. If there was no balance due on SUMRY, post the payment to the module with the earliest CSED. Research TXMODA for specific BMF information for a particular module including pending transactions and plan numbers. If there was no balance due on SUMRYresearch, post the payment to the module with the earliest unexpired CSED.
    e. Receive a payment without tax period or name and research described in scenario b. indicates the account is in installment agreement status. Research SUMRY for the module in status 60, 61, 63, 64 (status 14 for Estate Installment Agreements) and apply the payment to the module with the earliest unexpired CSED. (Refer to 3.8.45.10.2 for more detail.) If SUMRYindicates that the module with the earliest unexpired CSED has an assessed module balance of zero, post the payment to this module and the system will calculate accruals and roll any remaining balance to the subsequent modules in CSED order. If SUMRY indicates that the module with the earliest unexpired CSED has an assessed module balance of zero, post the payment to this module and the system will calculate accruals and roll any remaining balances to the subsequent modules in CSED order.
    f.Receive a payment for an EPMF that requires a Plan Number. Then research EMFOLIfor the Plan Number. If Entity or payment information is required, follow steps outlined in scenario a. and b. above.    
    g. Receive a payment and research indicates there is no balance due on IDRS or CFOL. Post payment to the current year. Exception: If an ACS payment, a TC 150 must be present before the payment can be applied to the account. Post the payment to the current year due. Post the payment to the current year due (Form 1120 or current quarter Form 941, as appropriate).
    h. A payment is accompanied by the second page of the tax return. Research IDRS to determine if the original return has posted (TC 150 for the tax period). The tax period is contained at the top or at the bottom of the tax return.

    • If the return has posted, input a TC 670 to post the payment.

    • If the return has not posted, input a TC 610 to post the payment.

    		 CC TXMOD and/or IMFOLT CC TXMOD and/or BMFOLT

  2. Always check cross-referenced TIN to ensure proper posting.

  3. The IRMs for the above-mentioned IDRS Command Codes are as follows:

    BMFOL 2.3.59
    EMFOL 2.3.64
    ENMOD 2.3.15
    IMFOL 2.3.51
    INOLE 2.3.47
    NAMEE & NAMEB 2.3.60
    SUMRY & TXMOD 2.3.11

3.8.45.5  (02-01-2008)
Payment Perfection Procedures For Manual Processing

  1. This section contains procedures for perfecting documents received in Payment Perfection from the Extraction process.

3.8.45.5.1  (02-01-2008)
Return/Document Perfection for Manual Processing

  1. Except for remittance amount, coding or editing is not required on returns.

  2. If remittance equals balance due entry, green rocker the balance due entry. If remittance does not match balance due or balance due has been circled by taxpayer, edit remittance amount in green inside, or to the left of the balance due space (on line 62a of Form 1040). Ensure edited amount is legible.

    Note:

    Any and all documents/returns that can be worked through RRPS should be.

3.8.45.5.2  (02-01-2008)
Payment Posting Vouchers (Non-RRPS)

  1. A Payment Posting Voucher must be prepared whenever a source document is not available and the payment cannot be processed through RRPS. A list of payment posting vouchers follows:

    1. Form 3244, Payment Posting Voucher. See Exhibits 3.8.45-9 & 46.

    2. Form 809, Posting Voucher. See Exhibit 3.8.45-15.

    3. IDRS Printout used in lieu of Form 3244. See Exhibit 3.8.45-16.

3.8.45.5.3  (02-01-2008)
Non-Master File (NMF) Centralization

  1. Non-Master File (NMF) is centralized to the Cincinnati Submission Processing Campus.

  2. Redirect all NMF types of accounts to the Cincinnati Campus.

3.8.45.5.3.1  (02-01-2008)
NMF Deposit Procedures for all Campuses other than CSPC

  1. Remittances received with NMF Returns process as "Out of Area Non-Master File Returns/Documents"

  2. Subsequent Payments Received for existing NMF Accounts:

    1. Research on IDRS using CC SUMRY with the TIN and an N to establish where the account is located.

    2. If account is located in a center other than yours, process as Out of Area Non-Master File Payment Refer to IRM 3.8.45.6.32 , Transshipment of Non-Master File Return/Documents.

3.8.45.6  (02-01-2008)
Specified Processing

  1. This section prescribes processing procedures for a variety of specific form types.

3.8.45.6.1  (02-01-2008)
Form 706 Series

  1. All Form 706 Series will be processed in CSPC. Form 706NA, 706QDT referring to a 706NA and Extension filed for Form 706QDT referring to a 706NA are processed as NMF.

3.8.45.6.1.1  (02-01-2008)
Other than CSPC Form 706 Series

  1. If a remittance is received at any other center for the following forms, you will route to Payment Perfection unit to establish entity and then process the remittance through RRPS. This is applicable to Form 706, Form 706-GSD, and Form 706-GST.

  2. If a remittance is received with form 706–GS(D-1), this is a non-remit return. Process the remittance as a 706GSD through RRPS and send Form 706–GS(D-1) as a non-remit document.

3.8.45.6.1.2  (02-01-2008)
Other than CSPC Out of Area Non-Master File Form 706 Series

  1. If a remittance is received at a campus other than CSPC campus for the 706 Series, process the remittance throughRRPS and transship the return to CSPC.

    Note:

    Include the form in the Accounting Operations Package and notate Out of Area Non-Master File Return on Form 813A.

3.8.45.6.1.3  (02-01-2008)
Form 706A U.S. Additional Estate Tax Return

  1. Forms 706A, U.S. Additional Estate Tax Return, remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 84

    3. Blocking Series 500–599

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

3.8.45.6.1.4  (02-01-2008)
Form 706D U.S. Additional Estate Tax Return - Under Code Section 2057

  1. Forms 706D remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 84

    3. Blocking Series 650–699

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

3.8.45.6.1.5  (02-01-2008)
Form 706QDT U.S. Estate Tax Return for Qualified Domestic Trusts (With Form 706A)

  1. Forms 706QDT remittances are processed as follows:

    1. Tax Period YYYYMM year ending

    2. Due date is MM/DD/YYYY yearly return

    3. Tax Class 6 (5)

    4. Document Code 85

    5. Blocking Series 519–524

    6. MFT 53

    7. TC 610

    8. Abstract Number 220

3.8.45.6.1.6  (02-01-2008)
Extensions Filed for Form 706QDT U.S. Estate Tax Return for Qualified Domestic Trusts (With Form 706A)

  1. You may receive from the taxpayer an extension filed for F706QDT on F4768 or a letter requesting an extension. All Forms 4768 will be processed in CSPC. These will be processed in either CSPC for F706QDT (with F706A) or OSPC for F706QDT (with F706NA).

    1. Tax Class 6 (5)

    2. Document Code 85

    3. Blocking Series 519–524

    4. MFT 53

    5. TC 670

    6. Abstract Number 220

3.8.45.6.1.7  (02-01-2008)
Schedule R-1 (Form 706 U.S. Estate Tax Return)

  1. Form 706 Schedule R-1 remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 85

    3. Blocking Series 590–599

    4. MFT 53

    5. TC 670/570

    6. Abstract Number 141

3.8.45.6.1.8  (02-01-2008)
Other than CSPC Out of Area Non-Master File Form 706 U.S. Estate Tax Return Series

  1. If a remittance is received at any other center for the 706 Series, process the remittance through Manual Deposit as an Out of Area Non-Master File Return.

    Note:

    Include the form in the Accounting Operations Package and notate Out of Area Non-Master File Return on F813A.

3.8.45.6.1.9  (02-01-2008)
Form 706NA U.S. Estate (and Generation-Skipping Transfer) Tax Return

  1. Form 706NA will be processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 05

    3. Blocking Series 000–999

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

3.8.45.6.1.10  (02-01-2008)
Form 706QDT U.S. Estate Tax Return for Qualified Domestic Trusts (with Form 706NA)

  1. Form 706QDT will be processed as follows:

    1. Tax Period YYYYMM year ending

    2. Due date is MM/DD/YYYY yearly return

    3. Tax Class 6 (5)

    4. Document Code 85

    5. Blocking Series 519–524

    6. MFT 53

    7. TC 610

    8. Abstract Number 220

3.8.45.6.1.11  (02-01-2008)
Extension Filed for Form 706QDT U.S. Estate Tax Return for Qualified Domestic Trusts (with Form 706NA)

  1. You may receive from the taxpayer an extension filed for F706QDT on Form 4868 or a letter requesting an extension. These will be processed in CSPC.

    1. Tax Class 6 (5)

    2. Document Code 85

    3. Blocking Series 519–524

    4. MFT 53

    5. TC 670

    6. Abstract Number 220

3.8.45.6.2  (02-01-2008)
Forms 709A U.S. Short Form Gift Tax Return

  1. Form 709A, U.S. Short Form Gift Tax Return, is obsolete.

3.8.45.6.3  (02-01-2008)
Forms 941C Statement to Correct Information Previously Reported

  1. Form 941C, Statement to Correct Information Previously Reported: If received with current or prior quarter/year Form 941, attach Form 941C behind form and process through RRPS

    1. TC 610

    2. MFT 01, 04 or 11

    3. Tax Period for 01 & 04, quarterly.

    4. Tax Period for MFT 11, annual.

  2. If received with an amended Form 941 or alone, process through RRPS.

    1. TC 670/570

    2. DPC 24

    3. MFT 01, 04 or 11

    4. Tax period for MFT 01 and 04, quarterly

    5. Tax Period for MFT 11, annual

    Note:

    If received with Form 941SS (for SPC other than Ogden), process remittance and transship to OSPC.

3.8.45.6.4  (02-01-2008)
Forms 1120 Interest Charge Domestic International Sales Corporation Return & 1120-ND Return for Nuclear Decommissioning Trust Funds and Certain Persons & 1120PC, U.S. Property and Casualty Insurance Company Income Tax Return

  1. Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, route to Manual Processing as NMF:

    1. TC 610

    2. MFT 23

    3. Tax Period

    4. Date stamp

  2. If correspondence is received regarding interest on distribution, route to Manual Processing as NMF:

    1. TC 670

    2. MFT 23

    3. Tax Period

  3. On Form 1120-ND, If "Trustee" or "Disqualified Person" box is checked, route to Manual Processing as NMF:

    1. TC 610

    2. MFT 32

    3. Tax Period

    4. Date stamp

  4. Form 1120PC, U.S. Property and Casualty Insurance Company Income Tax Return: If received claiming Section 847, route to Manual Processing as NMF:

    1. TC 610

    2. MFT 32

    3. Tax Period

    4. Forward Form 1120-PC to appropriate function.

3.8.45.6.5  (02-01-2008)
Form 4720 Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC

  1. Form 4720 may be filed by

    1. Individuals (self-dealer, disqualified persons, foundation managers) for a personal tax liability.

    2. Organization managers on behalf of the foundation.

    3. Organization managers on behalf of the foundation and for a personal tax liability.

  2. A determination must be made whether the return is being filed on behalf of the foundation/organization (Form 4720) for a personal tax liability (Form 4720-A) or for both. This is determined by the signatures on page 6.

  3. Review Form 4720 as follows (see Exhibit 3.8.45-21 ):

    If Then
    There is a signature only on the "Signature of officer or trustee" line on page 9, Process Form 4720 only

    1. Use original Form 4720 to process Part 1 amount via ISRP using TC 610.

    2. Transship Form 4720 to OSPC.
    There are signatures on both the "signature of officer or trustee" andthe "Signature of self-dealers..." line(s) on page 9, Process both Form 4720 and Form(s) 4720-A

    1. Annotate on Form 4720 in the left margin adjacent to Part II-A, the phrase "Form 4720-A Prepared."

    2. Apply remittance from the amount(s) entered on Part 1 or Part II-A.

    3. Photocopy all pages of Form 4720 for each entry in Part II-A.

    4. Put an "A" on each photocopy (see Exhibit 3.8.45-22 .

    5. Apply the remittance to each of the entities listed in Part II-A column (a) by underlining the TIN provided in column (b) and the total amount listed in column (i) in green separately on each copy. If Part II-A, Column (b) — TIN is blank and cannot be perfected from attachments, do not prepare Form 4720–A. Route Form 4720 to OSPC Code and Edit to initiate correspondence with the taxpayer. . "X" the non-related entries.

    6. Use converted Form(s) 4720-A to process Part II-A amount as NMF via Manual Deposit using TC 610.

      Note:

      After preparing form 4720–A, if the taxpayer has annotated "Request for Abatement under IRC 4962 " or similar wording on the return, photocopy all pages of each 4720–A that has been prepared. Annotate " photocopy" on each copy and route the copy to the Ogden Campus, Attn: Exempt Organization Accounts in Accounts Management.

    7. Use original Form 4720 to process Part I amount via ISRP using TC 610.

    8. Transship Form 4720 to OSPC.
    There is a signature(s) only on the "Signature of self-dealers, disqualified persons..." line(s) on page 9, Process Form 4720-1 only

    1. Disregard any entries in Part I.

    2. Put an "A" on original Form 4720 (see Exhibit 3.8.45-22 ).

    3. Photocopy all pages of converted Form 4720-A for each entry in Part II-A, if applicable.

    4. Apply the remittance to each of the entities listed in Part II-A column (a) by underlining the TIN provided in column (b) and the total amount listed in column (i) in green separately on each copy. If Part II-A, Column (b) — TIN is blank and cannot be perfected from attachments, do not prepare Form 4720–A. Route Form 4720 to OSPC Code and Edit to initiate correspondence with the taxpayer. "X" the non-related entries.

    5. Use converted Form(s) 4720-A to process Part II-A amount as NMF via Manual Deposit using TC 610.

      Note:

      After preparing forms(s) 4720–A, if the taxpayer has annotated "Request for Abatement under IRC 4962 " or similar wording on the return, photocopy on each copy and route the copy to the Ogden campus, Attn: EO Accounts in Accounts Management. On the routing slip annotate the reason for routing "4962 abatement request" . Annotate "photocopy send to EO Accounts" in the left margin of the original Form(s) 4720–A.

    6. DO NOT process the original as a Form 4720.

    Note:

    Line one of page 9 must be signed on behalf of the foundation or organization. If no entry in Part I and no signature on line one page 6, convert to Form 4720-A.

3.8.45.6.6  (02-01-2008)
Form 5329 Additional Taxes Attributable to Qualified Retirement Plans (including IRAs, Annuities) Without Form 1040

  1. Form 5329, if received without 1040, apply payment to the taxpayer's account and process through RRPS/ISRP using:

    1. TC 670

    2. MFT 29

    3. Tax Class 4

    4. Tax Period

  2. Route Form 5329 to Accounts Management Operations.

  3. If a Form 5329 is received without Form 1040 and there is insufficient information to post the payment to a taxpayer's account, prepare Form 3244 in duplicate and apply the credit to Unidentified. Attach the copy of Form 3244 to Form 5329 and route to Accounts Management Operations.

3.8.45.6.7  (02-01-2008)
Form 8821 Tax Information Authorization

  1. Route all Forms 8821 to the CAF unit. When the Form 8821 is received with other documents route as follows:

    1. If the Form 8821 is received with a Department of Labor Standards Enforcement (DLSE) payment, route the Form 8821 to the CAF unit and route the payment to:
      Department of Industrial Relations
      Division of Labor Standards Enforcement
      455 Golden Gate Ave., 9th Floor
      San Francisco, CA 94102

    2. If there are any other documents attached route to:
      Ogden Compliance Service
      CCU m/s 4707

3.8.45.6.8  (02-01-2008)
Form 8831 Excise Taxes on Excess Inclusions of REMIC Residual Interests

  1. Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interest, is processed through Manual Processing as NMF.

    1. TC 610

    2. MFT 89

3.8.45.6.9  (02-01-2008)
Form 5330 Return of Initial Excise Taxes Related to Employee Benefit Plans

  1. Forms 5330, Return of Initial Excise Taxes Related to Employee Benefit Plans, are processed at Ogden Campus only (OSPC) through RRPS/ISRP. For a subsequent payment, process as

    1. TC 670

    2. MFT 76

  2. If processing the original Form 5330, process through RRPS/ISRP with

    1. TC 610

    2. MFT 76

  3. Form 5330 with a SSN in Block B, "Filer's identification number," is treated as a Form 709. Research BMF. If the account is not established on the BMF, OSPC Entity must establish the account so that the payment will post to the account correctly.

  4. Form 5330 is used as the source document and processed through RRPS/ISRP. For SPCs other than OSPC, after processing remittance transship return to OSPC using "Out of Area Master File Procedures" 3.8.45.6.30.

    Note:

    Use EMFOLI to research plan number, if missing.

  5. Form 5330 that is for Non-Master File or missing a plan number is processed through Manual Deposit. For campuses other than CSPC, follow Out of Area NMF procedures. See IRM 3.8.45.6.33, Out of Area NMF - Transshipment of NMF Returns/Documents.

    Note:

    An NMF 5330 is one that is for tax period 1984 or older .

  6. Exception:If the Form 5330 has an SSN and is missing a plan number, and the plan number cannot be identified through research. Edit the plan number "000" and process through RRPS/ISRP.

3.8.45.6.10  (02-01-2008)
BMF Payment Vouchers

  1. Federal Unemployment Tax Return (Form 940V), Employer's Quarterly Federal Tax Return (Form 941V), Employer's Annual Federal Return for Agricultural Employees (Form 943V) Employer's Annual Federal Employment Tax Return (Form 944V), and Annual Return of Withheld Federal Income Tax (Form 945V) will be processed through NDP600 Transport. If Transport is unavailable, process through RRPS using program 15503.

  2. Form 940V and 940V-EZ

    1. TC 610

    2. MFT 10

    3. Tax Period

    4. After processing, forward to appropriate function.

    5. If voucher is not scannable, route to RRPS

  3. Form 941V

    1. TC 610

    2. MFT 01

    3. Tax Period

    4. After processing, forward to appropriate function.

    5. If voucher is not scannable, route to RRPS

  4. Form 943V

    1. TC 610

    2. MFT 11

    3. Tax Period

    4. After processing, forward to appropriate function.

    5. If voucher is not scannable, route to RRPS

  5. Form 944V

    1. TC 610

    2. MFT 14

    3. Tax Period

    4. After processing, forward to appropriate function.

    5. If voucher is not scannable, route to RRPS

    Form 945V

    1. TC 610

    2. MFT 16

    3. Tax Period

    4. After processing, forward to appropriate function.

    5. If voucher is not scannable, route to RRPS.

    Note:

    All prior year vouchers received without a return, process as TC 670.