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Part 3. Submission Processing

Chapter 8. Deposit Activity

Section 45. Manual Deposit Process (Cont. 3)

3.8.45  Manual Deposit Process (Cont. 3)

3.8.45.7 
Specified Processing

3.8.45.7.31  (02-01-2008)
Substitute Extension Forms

  1. When substitute applications for extension of time to file are received, use substitute extension as source document.

    1. TC 670

    2. Use the appropriate MFT for form indicated.

    3. Date stamp substitute extension.

    4. Edit remittance amount.

    5. Forward to Code and Edit Function after creating electronic voucher.

3.8.45.7.32  (02-01-2008)
Federal Tax Deposit (FTD)

  1. When Remittances are received with Forms 8109 and 8109B (FTD Coupons), or correspondence indicating FTD payments, review Forms 8109 and 8109B;

  2. When received without a return;

    1. If the "BANK NAME/DATE STAMP" box is blank; edit TC 670, tax period, appropriate MFT, on FTD coupon and process through RRPS.

    2. If the "BANK NAME/DATE STAMP" box has been stamped, do not process the remittance or FTD coupon. Forward both to the FTD Unit.

    3. If received with correspondence attached, edit TC 670, Tax Period, appropriate MFT, and process remittance and Form 8109 via RRPS. Detach correspondence, date stamp, edit remittance amount and route to appropriate function.

    4. If Forms 8109 or 8109B contains Name or EIN changes; photocopy and forward to Entity Control Function for issuance of a corrected coupon booklet.

  3. If received with a return or an extension:

    1. Staple coupon or correspondence behind return or extension.

    2. Date stamp if applicable,

    3. If not for same tax period, apply remittance per taxpayer intent.

    4. Process via RRPS or through Manual Deposit.

    5. If Form 8109 or 8109B contains a name or EIN change, photocopy the form and forward photocopy to Entity Branch for issuance of a corrected coupon booklet.

    6. Forward requests for FTDs to appropriate function for necessary action,

  4. If Advice of Credit, Form 2284, is received, do not process. Refer case to manager.

    1. If Form 2284 and multiple Forms 8109 and remittances, return to banking institution.

    2. If Form 2284 and multiple Forms 8109, but no remittances, forward both Form 2284 and Forms 8109 back to Extracting/Sorting Unit.

3.8.45.7.33  (02-01-2008)
Foreign Investment in Real Property Tax Act (FIRPTA)

  1. The disposition of a U.S. real property interest by a foreign person (the transferrer) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. A. U.S. real property interest includes sales of interests in parcels of real property as well as sales of shares in certain U.S. corporations that are considered U.S. real property holding corporations. Persons purchasing U.S. real property interests (transferee) from foreign persons, certain purchasers' agents, and settlement officers are required to withhold 10 percent of the amount realized (special rules for foreign corporations) for withholding to ensure U.S. taxation of gains realized on disposition of such interests. The transferee/buyer is the withholding agent. If the transferrer is a foreign person and you fail to withhold, you may be held liable for the tax.

  2. Two forms are generally used for reporting and paying the tax to the IRS regarding the acquisition of U.S. real property interests:

    Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests (Section 1445) or

    Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (Section 1445).

    Transferees must use Forms 8288 and 8288-A to report and pay to the IRS any tax withheld on the acquisition of U.S. real property interests. These forms must also be used by corporations, partnerships, estates, and trusts that must withhold tax on distributions and other transactions involving U.S. real property interests. You must include the U.S. TIN of both the transferrer and transferee on the forms (refer to Requirement for Taxpayer Identification Numbers (TIN's) below).

  3. The transferee on Form 8288 (Line 1) can have an SSN, ITIN or EIN. Nevertheless, apply the payment under MFT 17 (on the BMF) to the month and year of the Date of Transfer (Line 3) for the tax period unless a w/h cert letter is attached. If attached, then use the letter date of the w/h cert (approved or rejected) as the new DOT.

  4. If the transferee is an individual and does not have an SSN or ITIN, then obtain a temporary Internal Revenue Service Number (IRSN) in order to process and post the payment and income tax withholding return.

    Note:

    If an SSN, ITIN or IRSN, then make sure that the Entity unit has established the SSN, ITIN or IRSN on the BMF using TC 000.

  5. If the transferee is a business entity and does not have an EIN, then obtain an EIN from the Entity unit in order to process and post the payment and income tax withholding.

  6. Attach all correspondence to the posting document.

3.8.45.7.34  (02-01-2008)
Information Returns (IRP)

  1. Payments received with information Forms W–2G, 1098, 1099 series, and Forms 5498, 8038 cannot be used as a source document.

    1. Follow procedures in IRM 3.8.45.10.5Unidentified/Presearch.

    2. When application of payment is determined, apply payment with TC 670.

    3. Route forms to appropriate function.

3.8.45.7.35  (02-01-2008)
Ozone Depleting Chemicals (Abstracts 19, 20, or 98)

  1. Taxes for ozone depleting chemicals may also be referred to as abstracts "19" , "20" or "98" and are identified as items 19, 20 or 98 on Form 720, Quarterly Federal Excise Tax return.

  2. Remittances received indicating repayment of erroneous refunds for ozone depleting chemicals; refer to IRM 3.8.45.17, Repayment to Refund Appropriations.

  3. Remittances received with or without Forms 720, indicating payment is for ozone depleting chemicals, process as follows:

  4. With Forms 720 edit appropriate quarter. Process through RRPS.

    1. Tax period for Abstract 19 and 98 is quarterly.

    2. Tax period for Abstract 20 is first quarter.

    3. MFT 51 (BMF) and MFT 54 (NMF)

  5. Without Form 720 process through RRPS:

    1. TC 670

    2. MFT 03

    3. Tax Period

3.8.45.7.36  (02-01-2008)
Statute Cases

  1. Check all return tax periods for the Statute of Limitation (2 years and 10 months from the normal due date of return). If the Statute of Limitations is in jeopardy, payments require special consideration. Research IDRS before processing a payment on a statute case to determine if TC 150 posted.

  2. For non-amended Statute Returns:

    1. Use TC 610 only. Send the check and posting document to ISRP. After processing route the return to Statue Control Group same day as received.

    2. If two or more remittances are received, treat as multiple.

    3. Process through InfoConnect or RRPS the same day as received.

    4. After deposit processing attach Form 4227, Intra-SC Reject or routing Slip to the form.

    5. Forward the non-remit form to the Statute Control Group in a red folder.

    6. Refer to IRM 3.30.123 Processing Timeliness for normal due dates of returns,

    7. Do not flag returns identified as "secured by EP/EO" , or similar notation, for statute clearance.

  3. For amended Statute Returns.

    1. Process using TC 670, and secondary TC 570 with DPC 24.

    2. Follow c) through g) above.

  4. Do not route returns with the following conditions present to the Statute Control Unit:

    1. Marked 6020(b).

    2. TC 59X or ICS notated on the face of the return.

    3. Substitute returns prepared by Examination (SFR marked in top margin).

    4. Returns marked "Return Secured by Exam/Compliance."

3.8.45.7.37  (02-01-2008)
Transshipment of Master File Returns/Documents

  1. Out of Area Master File Returns/Documents Processing may need to be transshipped.

    Note:

    Any and all forms which can be processed through RRPS should be processed through RRPS.

  2. Process returns/documents as source document

  3. To process the remittance, use the return/document as a source document and process through RRPS:

    1. TC 610 (returns only) Send the check and posting document to RPS. After processing route the return to Status Control group same day as received.

    2. Appropriate MFT.

    3. Edit remittance amount in green

    4. Edit received date and remittance amount on return/document

  4. If the remittance cannot be processed through RRPS, process through Manual Deposit following these procedures:

    1. Prepare and number Form 3244

    2. Attach numbered copy of Form 3244 behind the return.

    3. Transship returns/documents to appropriate Campuses.

  5. If Forms 1040ES and 1041ES cannot be processed through RRPS, process through Manual Deposit using these procedures:

    1. For Forms 1040ES series, prepare Form 3244, Payment Posting Voucher, in duplicate using TC 430, and MFT 30.

    2. For Forms 1041ES, prepare Form 3244, Payment Posting Voucher, in duplicate using TC 660, and MFT 05.

3.8.45.7.38  (02-01-2008)
Conscience Fund

  1. A "Conscience Fund" is an account to be credited when remittances are received from taxpayers to ease their consciences. There are several ways to identify a conscience fund remittance.

    1. A remittance indicating it is for the "Conscience Fund"

    2. A taxpayer may write a note stating, "I will be able to sleep better now"

    3. There is an indication the remittance is for a tax related balance due IRS or a non-tax related balance due other government agencies

    4. A non-tax related balance with the word "Conscience" or wording that indicate conscience fund.

    5. A remittance signed "Anonymous" with no indication that the remittance is for the Conscience Fund and insufficient information on the remittance or envelope to identify the taxpayer.

  2. When a remittance is received indicating it is for the " Conscience Fund," process the remittance using the following procedures.

    1. Make a copy of the original letter for suspense. Purge after six months.

    2. Input deposit data through RRPS.

    3. Once remittances have been finalized and balanced through the transport, the total deposit will print on a Form SF 215A–C Deposit Ticket under account symbol 20–1210.

    4. Forward memorandum copy of DT, second copy of Form 813C with the General Fund Recap Report to the Accounting Operations.

3.8.45.7.39  (02-01-2008)
Prepaid Photocopy Fees

  1. Requests for photocopies or transcripts of Tax Forms are received on correspondence of Form 4506, Request for Copy or Transcript of Tax Form. A current copy of Form 4506 is on the electronic publishing website, http://core.publish.no.irs.gov/forms/public/pdf/41721d06.pdf). Requests are reviewed for completeness and proper fee. Rejected requests should be returned to the proper recipient within three days of IRS receipt. Acceptable requests should be forwarded to the Return & Income Verification Services Function (RAIVS) by expedite delivery daily to ensure timely response to the customer.

  2. IRM 3.5.20 provides specific guidelines for preprocessing review of these requests. Fees are only required at this time for "copies of tax forms." They are not posted at the master files and any reimbursement of fees must be made manually. Therefore, deposit of fees for unprocessable requests should be avoided. Contact the RAIVS function at your processing site for assistance in analyzing these requests. Requests with "live" fees should not be removed from the secured area of Receipt & Control.

  3. Other ways you may receive photocopy fees includes:

    1. Form 8157, Copy of Tax Return of Tax Account Information Not Accepted by Bank.

    2. Correspondence or other related documents.

    3. Accounting Packages from field offices may transship including Form 4506, or Form 8157 with remittances for processing.

  4. Prior to deposit, each request for photocopy must be reviewed for correct payment and completeness otherwise, refer to Unidentified Procedures, IRM 3.8.45.10.5. If further assistance is required, contact the RAIVS Unit. Requests for photocopies of tax returns are received from taxpayers or representatives on various forms. `

    1. Form 4506, Request for Copy or Transcript of Tax Form.

    2. Form 8157, Copy of Tax Return or Tax Account Information Not Accepted by Bank

    3. Correspondence request, or other related documents

    4. Field Offices may transship Forms 4506 and Form 8157 in Accounting Packages without remittances to Campuses for further processing. http://core.publish.no.irs.gov/forms/internal/pdf/61028c07.pdf

  5. Compute the amount due based on the number of copies requested and compare with amount paid.

    1. The charge for a photocopy of each tax return is $39.00

    2. Do not reject a full paid copy request if it is for a tax form and year that may have been destroyed, per records holding or collection statute guidelines, without first researching to determine availability.

    3. Exceptions to Photocopy Fee - Unless payment is received, provide copies of tax forms free of charge in the following cases:

    1. Disaster Program.

    2. Taxpayer Advocate Cases.

    3. Congressional or White House Cases.

    4. Requests for copies of tax returns received as a result of applications for Qualified Mortgage Subsidy Bonds (These are always low-income taxpayers. Since most lenders will accept "account information" which is free of charge, requests for copies should be few.)

    5. Any case where IRS initiated the contact.

      Note:

      Contact the RAIVS function when any questions arise.

  6. Prior to deposit, review each request for correct payment using the following procedure

    If And Then
    The request is for multiple items (e.g., transcripts and photocopies or for multiple copies of forms). Correct payment is received or the fee is overpaid, and request is complete per (6) of this subsection. Edit money amount on the request in green pen.
    Deposit payment per (9) of this subsection.
    Send request to RAIVS for processing.
    The request is for multiple items (e.g., transcripts and photocopies or for multiple copies of forms). Correct payment is received or the fee is overpaid, and request is not complete per (6) of this subsection. Reject request with remittance per (7) of this subsection. Include Notice 675, "Notice of Charge for Copy of Tax Return" (revision January 2004), and a blank Form 4506 (revision April 2006), indicating required items that were incomplete and explain a new check is needed.

  7. All requests must be complete before they can be processed, regardless of how the request is received.

    1. Each request must contain all information needed to be complete on the form or correspondence. The taxpayer's signature or authorized person's signature must be on the request document in order to provide authorization for disclosure. Do not send information to a third party whose name and address is not listed on the authorization signed by the taxpayer.

    2. If there is a TIN on the request, and you can determine the digits are simply "mixed," continue processing.

    3. Do not use attachments to perfect third party requests. Third party requests are requests where there is information in Item 4 of Form 4506, or where the taxpayer is telling IRS to send information to someone else on correspondence.

    If And Then
    The request if for item(s) requiring a fee (e.g. one of more copies of tax returns) or combination of items requiring a fee and no fee (e.g. W-2 information requests for not require a fee). No payment is received Review for completeness as outlined at (6) of this subsection.
    Reject request with remittance per (7) and (8) of this subsection.
    Include Notice 675, "Notice of Charge of Copy of Tax Return" (revision January 1, 2004), and a blank Form 4506 (revision April 2006), indicating any required items that were incomplete and the amount of remittance required.
    A request is received where remittance is due. Requester resubmits a check previously stamped "Non-negotiable," and request is complete per (6) of this subsection.
    Reject request per (7) and (8) of this subsection.
    Include Notice 675, "Notice of Charge for Copy of Tax Return" (revision January 1, 2004) and a blank Form 4506 (revision April 2006), explaining a new check is needed.
    check request to ensure previous IRS received date is circled.

    Exception:

    Multi-purpose forms, such as loan applications, are not acceptable as valid authority of tax return/return information disclosure. As a general rule, only IRS/SSA Forms designed for disclosure of taxpayer data should be honored. Forms 4506 or Forms 8821 are the primary forms processed by RAIVS. Regulation 301.6103(c)-1 states the request for disclosure must be in written form and "pertain solely to the authorized disclosure. " Other forms or handwritten requests can be processed, but should be reviewed by the local Disclosure Officer prior to disclosure.

    1. If there is a TIN on the request, and you can determine the digits are simply "mixed," continue processing.

    2. Do not use attachments to perfect third party requests. Third party requests are requests where there is information in Item 4 of Form 4506, or where the taxpayer is telling IRS to send information to someone else on correspondence.

  8. Use the following procedures when rejecting fees to the taxpayer:

    1. Stamp checks sent to the RAIVS function "Non-negotiable. "

    2. If a request is rejected directly to the requester, it is not necessary to stamp check "Non-negotiable."

    3. Do not stamp money orders "Non-negotiable."

    4. Currency of less than $10.00 may be returned to the taxpayer by regular mail. Ensure Form 4287, Record of Discovered Remittances, is annotated "return to taxpayer" and initialed by the manager prior to mailing.

    5. Currency of $10.00 or more will be returned to the taxpayer by registered mail.

    6. Record volume of rejects to OFP 210–34000.

  9. All rejected requests identified during preprocessing should be returned to the taxpayer listed in the "current address" provided in Block 3 on the Form 4506.

    1. If "current address" is not available, forward the form to the RAIV's for handling.

    2. Circle any previous IRS received date on all requests being returned to the taxpayer.

  10. Route perfect F4506 to RRPS for processing under Account Symbol 20X6877. Batches must not exceed 100 items.

3.8.45.7.40  (02-01-2008)
EO Photocopy Fees

  1. Form 2860, Document Transmittal and Bill, is used to bill requesters of copies of Exempt Organization Returns and CD's of the returns, after the requests are processed.

  2. Remittances may also be received on Form 4506A, Request for Public Inspection of Copy of Exempt Organization Tax Form.

  3. Edit remittance on document in green pen.

    1. Input data through RRPS as Account Symbol 20-3220 for copies of returns.

    2. Input data through RRPS as Account Symbol 20X5432.5 for E.O. CD's.

  4. Transship all deposit complete documents to the Ogden processing site. When a payment is received with Form 2860, forward a copy of the Form 2860 to the EO Photocopy unit (MS:6716).

3.8.45.7.41  (02-01-2008)
Offers in Compromise (OIC)

  1. OIC initial case processing has been consolidated at Memphis and Brookhaven Campuses. OIC payment processing for approved offers has been consolidated in Fresno. However, offers with remittances (COIC) and payments on approved offers (MOIC) may be received at other sites. These payments will be forwarded to PPU for processing as outlined below.

  2. All sites in receipt of remittances must safeguard receipts and adhere to internal controls. IRM 3.8.45.41, Non-continuing Sites and Remittance Security, outlines physical and remittance security.

  3. All remittances must remain in the secured area as directed by local management and in adherence to physical security requirements.

3.8.45.7.41.1  (02-01-2008)
Centralized Offers in Compromise (COIC)

  1. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) provides that offers in compromise must include not only the $150 application fee but either 20% of the amount offered or one installment payment. COIC payments will be processed through the Payment Check Conversion (PCC) System at Memphis and Brookhaven. At the time of this writing, pending legislation was to make a reduced fee available for low income taxpayers retroactive to January 1, 2007.

  2. Offers can be identified by the following:

    1. The payment is attached to an original Form 656, Offer in Compromise.

    2. Documentation attached to the remittance indicates that it is an application for an offer.

  3. When a remittance is received with Form 656, transship the entire offer package (the remittance, Form 656 AND any attached documentation) to COIC in Memphis or Brookhaven.

  4. When a remittance is received only with related documentation that states that an offer is being made, transship the payment AND all related documentation to COIC in Memphis or Brookhaven.

  5. When a remittance is received without any accompanying documentation to identify the payment as COIC, when a remittance is received with only "OIC" annotated on the remittance or when taxpayer intent cannot be determined, DO NOT transship the payment. Follow the MOIC procedures in 3.8.45.7.43.2 below.

  6. Offer cases are assigned based on where the taxpayer resides. The following chart should be used to determine if offer packages should be forwarded to Memphis or Brookhaven:

    If the taxpayer resides in Forward the offer package to
    Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Puerto Rico, Pennsylvania, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, District of Columbia or International Brookhaven Internal Revenue Service COIC Unit , P.O. Box 9007, Holtsville, NY 11742-9007
    Alaska, Alabama, Arizona, California, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin or Wyoming Memphis Campus COIC Unit, P.O. Box 30803 AMC, Memphis, TN 38130-0803

  7. All offer packages must be transshipped via overnight traceable method via Form 3210, Form 3210 must list each taxpayer's name and the amount of the related remittance.

3.8.45.7.41.2  (02-01-2008)
Monitored Offers in Compromise (MOIC)

  1. Payments received on previously accepted offers must be processed by the receiving campus. DO NOT transship payments on previously accepted offers to Brookhaven or Memphis. Process them.

  2. To determine if a payment is for a previously accepted offer,

    1. Research of CC TXMOD shows a TC 780 on the account or

    2. Research of CC SUMRY shows the account is in STAT 71.

  3. Indicators that the payment is for a previously accepted offer and that research of CC TXMOD and/or CC SUMRY should be performed are:

    1. The payment is attached to a PHOTOCOPY of Form 656.

    2. Taxpayer correspondence received with the payment states the payment is for an OIC.

    3. The taxpayer annotates on the remittance "OIC" only and no other information is provided.

  4. Apply the payment to the oldest unexpired CSED on the taxpayer's account with a remaining balance due using TC 670 and DPC 09. Check IMFOLI to determine if any accruals are due on zero balance periods before applying payment to the next oldest CSED.

    Note:

    Apply the payment to the oldest unexpired CSED module with a remaining balance even if the taxpayer indicates that the payment is intended for another tax period.

  5. All documentation received with payments on previously accepted offers must be transshipped to Brookhaven or Memphis. Use the chart in 3.8.45.7.43.1 above to determine which Campus the documentation should be forwarded to.

  6. All documentation must be transshipped via overnight traceable method along with Form 3210. List on Form 3210 the name of each taxpayer for whom documentation is being forwarded.

3.8.45.7.41.3  (02-01-2008)
Sale of Seized Property Payments (For Sites Other Than Ogden)

  1. Reporting seized, acquired and collateral properties to the Interim Revenue Accounting Control System (IRACS) centralized in Ogden on October 1, 2003. Effective October 1, 2003, all new entries for seized property, acquired property must be remitted to Ogden by field offices. If new cases and remittances are sent to a site other than Ogden, the following actions are required:

    • Prepare Form 1963, Collection Register (Deposit Funds, Refund Repayments, General Funds Receipts). Write OUT OF AREA DEPOSIT FUND on Form 1963.

    • Deposit the remittance. (Prior to centralization, these payments were processed on ISRP.)

    • Send the complete package with all documents included to Accounting in your campus.

3.8.45.7.42  (02-01-2008)
User Fees

  1. Program 00005 is specifically used for installment agreements user fees only. Program 00002 should be used for all other user fees processing.

  2. Process EP/EO Determination Letter Application User Fees Remittance received with Forms 1023, 1024, 1028, 5300, 5301, 5303, 5307, 5308, 5310, 4461, 4461–A, 6406 (with or without Forms 8717 and 8718 attached), 8717 and 8718 or Voluntary Compliance Resolution (VCR) Program Fee-EP Processing Letters received with fees.

  3. Remittances received with Forms 3115, 1128 or 2553, with or without correspondence, should be returned to taxpayer with letter 2340C. Write letters "UFR" on form to indicate User Fee remittance received and returned.

    1. Route Forms 1128 and 2553 to Entity Control.

    2. Route Form 3115 to Taxpayer Relations.

    3. If remittance is greater than the amount shown for User Fees, deposit the entire remittance and apply the excess amount to taxes due. Send 2340C letter to taxpayer for notification.

    4. Route correspondence to Adjustments/Correspondence, indicating " User Fees."

  4. Remittances received for Examination User Fees, with Form 3244A from field offices should be processed using the following procedures.

    1. Green rocker the document with payment on lower right corner.

    2. Input the deposit data through RRPS using Account Symbol 20–2411.

    3. Return Form 3244A to the Special Procedures function.

    4. Route memorandum, copy of DT, and copy of the General Fund Remittance recap Report to Accounting Operations on Form 3210.

3.8.45.7.42.1  (02-01-2008)
Installment Agreement User Fees (IAUF)

  1. Installment Agreement User Fees are processed through RRPS using MFT 13 (BMF) and MFT 55 (IMF). Installment Agreement User Fee amounts are as follows.

    1. The user fee for a new installment agreement is $105.

    2. The user fee for restructured or reinstated agreements is $45.

    3. The fee for a Direct Debit Installment Agreement (DDIA) is $52.

    4. Taxpayers with income at or below established levels based on IRS Installment Agreement Low Income Guidelines may be qualified to pay a one-time reduced user fee of $43 for establishing new agreements, including DDIA.

  2. IAUF payments may be split. For example, if $1454 is received with CP523 for a reinstated installment agreement, $45 may be posted as the user fee using TC 694, while the remainder is posted using TC 670 to the tax period indicated on the notice.

    Note:

    Use the current processing year with month ending 12 (BMF) or 01 (IMF) as the tax period. DO NOT use the tax period listed for the tax payment for posting IAUF.

  3. The following If..Then chart should be used to determine the action that should be taken when IAUF payments are received.

    IF THEN
    A payment is received with a CP 521 or CP 523 and the literal "USDF" is preprinted on the right hand side of the CP 521 or 523 Do not research. Apply the user fee to the taxpayer's account and apply any remaining balance to tax. The amount to be applied as user fees is the amount that is immediately shown after USDF. For example, if USDF105 is present, $105 should be posted as user fees.
    A payment is received with a photocopy of a CP 521 or CP 523 and the literal "USDF" is preprinted on the right had side of the CP 521 or CP 523 Do not research. Apply the user fee to the taxpayer's account and apply any remaining balance to tax. The amount to be applied as user fees is the amount that is immediately shown after USDF. For example, if USDF105 is present, $105 should be posted as user fees.
    A payment is received with a CP 521 or CP 523 and the literal "USDF" is NOT preprinted on the right hand side of the CP 521 or 523 Do not research. Apply the full amount of the payment to tax only.
    A payment is received with Form 433D or Form 2159 Do not research. Apply the full amount of the payment to tax.
    A payment is received with a photocopy of Form 433D or Form 2159 Do not research. Apply the full amount of the payment to tax.
    A payment is received and insufficient information is provided to indicate the payment is for user fees Research CC IADIS.

    1. If IADIS shows EFT CD-1 AND the IA User Fee Code is 1, 5 or 8, apply the full amount of the payment to tax only.

    2. If IADIS shows EFT CD-0 ANDthe IA User Fee Code is 0, 4 or 7, apply the user fee to the taxpayer's account and apply the remaining balance to tax. (See the IAUF Codes in 3.8.45.7.44.1(6) below to determine the user fee amount to apply.)

    3. If IADIS shows EFT CD-0 AND the IA User Fee Code is 0, 4 or 7 AND the payment received is less than the user fee due, apply the full amount of the payment to tax. (See the IAUF Codes in 3.8.45.7.44.1(6) below to determine the user fee amount due.)

    4. If IADIS shows EFT CD-0 or EFT CD-1 AND the IA User Fee Code is 2, 3, 6 or 9, apply the full amount of the payment to tax only.

    A payment is received from a TAC Office and the payment posting voucher specifically indicates the payment is for Installment Agreement User Fees Apply the user fee amount shown on the payment posting voucher to the taxpayer's account as a user fee and apply the remaining balance to tax.
    A payment is received from a TAC Office or revenue officer and the payment posting voucher does not indicate the payment is for Installment Agreement User Fees Apply the full amount of the payment to tax.

  4. The IAUF should be applied as follows:

    • TIN - from source document

    • Check Digit or Name Control - from source document

    • Primary T/C - 694 always

    • Primary Amt -

      $105 - origination fee for installment agreements. Exception: $43 origination fee if taxpayer met IRS Installment Agreement Low Income Guidelines qualifications.

      $52 - origination fee if a new Direct Debit Installment Agreement (DDIA)

      $45 - reinstatement fee

    • Received Date

    • MFT - 13 (BMF) or 55 (IMF)

    • Tax Period - current processing year with month ending 12 (BMF) or 01 (IMF)

    • Secondary T/C - 360 always

    • Secondary Amt - always the same as the primary amt.

    • DPC - 50 (new) or 51 (reinstatement) or 49 (DDIA).

  5. A list of valid Installment Agreement User Fee Codes is shown below.

    0 = Origination User Fee Due ($105; $43 if taxpayer met IRS low income qualifications, $52 for DDIA)

    1 = Origination User Fee Paid

    2 = Origination User Fee Waived

    3 = User fee not applicable, extension to pay

    4 = Reinstatement User Fee Due ($45)

    5 = Reinstatement User Fee Paid

    6 = Reinstatement User Fee Waived

    7= User fee due, original DDIA ($52)

    8= User fee paid, original DDIA