The inventory of Forms 809 Receipt for Payment of Taxes books must be verified by serial number at least once each quarter by a manager without responsibility for Field Office Payment Processing. The manager conducting the 809 inventory must take a physical count of books on hand by serial number. The physical count of 809 books must be reconciled to the volume and serial numbers of 809 books in the Database. The manager's physical count must be witnessed and signed 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 with documentation to support transference of inventory to or from another site, and manifests from National Distribution Center or vendor showing any changes to the inventory, pseudonumbers and legends.

A report will be prepared and maintained in a permanent file in Receipt and Control. The report must contain the:

Form 809 Receipt for Payment of Taxes retention criteria is 3 years from the date of issuance of the last receipt in the book. If no receipts have been written, the scheduled date for destruction is normally 3 years from the date the field office employee took possession of the book. You must not destroy Forms 809 that have met the retention criteria. Records management is a program administered by the Agency Wide Shared Services (AWSS) organization. Contact your local records officer for further information.

At least once a year, managers must review all Form 809 (Official) Receipt for Payment of Taxes books assigned to their employees to verify all official receipts have been accounted for. This is the Service's internal control to provide reasonable assurance against waste, fraud and abuse, and is known as the annual reconciliation of official receipts.

Pre-verification of Organizational Information: Pre-verification of organizational information is required before initiating the annual reconciliation. Generate the Pre-Verification Report from the 809 Database and e:Mail to each territory and department manager, or designee by the last business day of August. The requested response is verification of employee names and placement in the organization, SEID numbers, names and SEIDs of respective management to the director level. Request a response within 10 business days. The organizational information requested should reflect the correct information as of the first business day of October. Update the 809 Database to reflect the correct organizational information for reports that will be issued on the 1st business day of October.

Physical Review of 809 Part-3 Files: Submission Processing Centers must conduct a physical review of 809 part-3 files to ensure 809 Database records reflect the actual receipts that have been received. If an 809 book has been issued and no receipts have been received,

Submission Processing Centers servicing Remittance-processing units initiate the reconciliation with their aligned field office functions by providing a list of field office employees by territory and group with receipt books issued to them and the receipts received as of the reconciliation date.. The annual reconciliation date is October 1, 2008. Remittance processors will provide the annual list with cover memorandum or e:Mail from the Field Director, Submission Processing or designee as soon as possible, no later than 10 business days of the annual reconciliation date, or October 16, 2008. Remittance processors must also initiate reconciliation of any other functional area to whom the site issued 809 books. A reconciliation must also be initiated with the department manager of any campus area that uses 809 books.

Creating the Annual List for the Reconciliation for SB/SE and LMSB: Using the 809 database template, you may generate the report in snapshot format. Verify the database listings are correct and match the 809 receipts actually in the 809 Part-3 Memo copy file. You must physically verify the 809 audit copies and payments have been received. They must be in the 809 part-3 file, having been correctly filed each day. If an 809 book has been issued and no individual receipts have been returned, you must indicate 0.

Print or e:Mail the listing. Field officer SB/SE or LMSB group managers may require support to reconcile the receipts issued to Submission Processing center records. SB/SE group managers will provide their completed reconciliations to their territory manager, or designated official. SB/SE Territory managers will provide their composites to the designated 809 Reconciliation Coordinator for SB/SE, who is Lani Andrew (202) 283-6870. LMSB group managers will provide their completed reconciliations to Brenda DePippo-Day. Include the designated 809 coordinator as a cc: recipient on the cover memorandum. In SB/SE and LMSB, the cover memorandum should direct the territory manager, or their designee to verify, sign and return the annual list to the Submission Processing site coordinator, without marking on the original list. Any changes or corrections should be submitted in narrative format via hard copy, under the signature of the territory manager, or via e:Mail from the territory manager. The territory manager's signature is required whether there are changes or not. The cover memorandum must indicate the name, telephone, fax and return address of the designated liaison for the Submission Processing Center. The liaison will work closely with field office managers to resolve any discrepancies. Remittance processors will review the requested changes and corrections and forward the completed package to the 809 Coordinator by January 16, 2009. 809 Coordinators for the designated functional area will inform accountable executives of any unresolved discrepancies. Addresses are listed under (7) below.

Creating the Annual List for the Reconciliation for W&I Field Assistance: Using the 809 database template, you may generate the report in snapshot format. Verify the database listings are correct and match the 809 receipts actually in the 809 Part-3 Memo copy file. Print or e:Mail the listing. Field Assistance managers may require support to reconcile the receipts issued to Submission Processing center records. Field Assistance managers will provide their completed reconciliations to their territory manager, or designated official. The cover memorandum should direct the territory manager, or their designee to verify, sign and return the annual list to the Submission Processing site coordinator, without marking on the original list. Any changes or corrections should be submitted in narrative format via hard copy, under the signature of the territory manager, or via e:Mail from the territory manager. The territory manager's signature is required whether there are changes or not. The cover memorandum must indicate the name, telephone, fax and return address of the designated liaison for the Submission Processing Center. Include the 809 Coordinator, Linda Turner as a cc: recipient of the cover memorandum. The liaison will work closely with field office managers to resolve any discrepancies. Remittance processors will review the requested changes and corrections and forward the completed package to the 809 Coordinator by October 16, 2008. 809 Coordinators for the designated functional area will inform accountable executives of any unresolved discrepancies. Addresses are listed under (6) below.

National 809-Coordinators for Field Office Functions are as listed below. Updates will be posted to the Submission Processing website under Standard Procedures and Aids, Field Office Payment Processing Program.

Strict Control and Precision Required: The annual reconciliation must be conducted with the same care and precision as handling cash. Ensure territory managers, department managers, and operations managers receive only 809 reports for their respective territory. Initiate a reconciliation for all functional areas and employees to whom 809 books were issued, including Submission Processing employees who write receipts for occasional cash received through the mail. The report must contain the:

Territory Managers and Group Managers in field offices should contact the designated 809 coordinators for their operating division and functional area for specific program requirements. Territory Managers, Department Managers, and Group Managers or their designee will work closely with the Submission Processing site designated liaison to resolve any discrepancies. Unresolved discrepancies may indicate potential fraud. For this reason, National 809-Coordinators of the field office functions will review all reconciliation responses. See table below for some examples of discrepancies and actions. Please note these are not all inclusive. Refer to IRM 3.0.167 Losses and Shortages for directives if any losses are identified.

Field Directors, Submission Processing must certify the center's compliance with annual reconciliation requirements by January 15th of the following year. If the 15th is on a Holiday or weekend, the memorandum is due the next business day. A memorandum should be issued to Director, Submission Processing through the W&I Submission Processing Headquarters Analyst, certifying the center met the requirement to initiate and support the annual reconciliation process. Identify any field offices that failed to respond to the reconciliation report, and/or any offices (including center personnel) with discrepancies. State actions taken to resolve discrepancies. Include a listing of all unresolved discrepancies. Send the memorandum via hard copy to:
Internal Revenue Service
Attn: Edna Banks
SE:W:CAS:SP:BMF:SCA
5000 Ellin Road, NCFB C-5-181
Lanham, MD 20706
Phone: (202) 283-2588

Support for Ad Hoc Reviews: Managers, at their discretion, may request a listing of all 809 receipts for their employees to conduct ad hoc reviews. Submission Processing Centers will provide supporting information immediately upon request of field office or campus managers.

Return of a partially used Form 809 book is the result of an employee:
Separating from the Service,
Transferring to a different functional area or area office within the same function, or
No longer using the receipt book as part of their tasks.

The field office or campus employee must return the receipt book to the Submission Processing Center that issued the book within 10 workdays. If known closed 809 books are not received within 30 calendar days after change of disposition, issue Form 5919 to the manager, with response required for return of the closed book.

Partially used 809 books may not be re-issued. If not already, once received at the center, each receipt must be defaced or voided. The book is then treated as closed. File in suspense to ensure timely destruction. Refer to IRM 3.8.45.27.13 Form 809 Retention and Destruction.

Some organizations rotate Form 809 books users periodically. If a manager rescinds an employee's ability to write 809 receipts and returns the receipt book, ensure all receipts are voided. If not, write VOID on all four parts of the remaining receipts in the book. The manager will have to submit a request for issuance an 809 book at the end of the rotation.

Procedures for reporting lost or stolen blank Forms 809 involve each functional area with knowledge of a lost or stolen Form 809 reporting the loss to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations and campus Remittance Security Coordinator. This is true regardless of the location or circumstances surrounding the loss. Inform the designated Remittance Security Coordinator, whose role is to ensure taxpayer relief is granted and to protect the taxpayer's account during an investigation. This is true even if the field office manager says they are reporting the loss. Refer to IRM 3.0.167 General — Losses and Shortages for complete information.

Designated Remittance Security Coordinators are listed on the Submission Processing homepage. Once at the site, click on "Security Information " , then Remittance Security Coordinator Information.

The employee or manager to whom the lost or stolen receipt book was assigned prepares a memorandum report, in quadruplicate. They submit the report to their manager. The manager informs TIGTA Office of Investigations and the Remittance Security Coordinator. A copy of the report is transmitted on Form 795/795A, Daily Report of Collection Activity, to the submission processing center remittance processor who files it in place of the missing receipt(s).

The report contains the following information:

If the lost or stolen item is a specific part of Form 809, in addition to the items listed above, follow the procedures indicated in the table below. They must immediately notify their supervisor. The supervisor immediately notifies the Teller Unit supervisor or Remittance Perfection Manager and the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations by telephone. A follow-up memorandum report must be issued, sending a copy to the designated Remittance Security Coordinator for the campus servicing the field office.

Field Office Employee Responsibilities:When reported lost or stolen Forms 809 are recovered, the employee prepares a memorandum report, in quadruplicate. A copy will be submitted with the recovered receipts on a Form 795. The office will forward the original and two copies of the memorandum through managerial channels (including the territory manager) to the Remittance Security Coordinator for the campus where the loss was originally reported.

The report includes the following:
Name and post of duty of employee who reported the loss.
Serial number of the recovered receipts.
Date the receipts were recovered.
A statement that all recovered receipts have been cancelled by voiding.
Circumstances surrounding the recovery.

The field office employee recovering the receipts should void it by writing VOID on all four parts of each receipt.

Once the documents are received in the teller unit, follow the procedures in the table below:

Receipt and Control Operations Managers issue Form 809 Receipt for Payment of Taxes books (official receipts) to all area office personnel, including Taxpayer Assistance Center employees. In order to ensure availability of receipts for customers, while maintaining strict control, Taxpayer Assistance Center (TAC) assistors may re-order a new Form 809 book after using the 40th receipt in their current 809 book. At management discretion, Taxpayer Assistance Center assistors may request a receipt book sooner than the 40th receipt, or more than one book to accommodate high demand for receipts. When requesting multiple 809 receipt books, or if requesting a book before the 40th receipt has been received at the site, management approval is required.

All 809 users must use receipts in sequential order and begin using a new 809 book only after issuance of all receipts from their current 809 book. Submission Processing Center remittance processors must check the requesting employee's 809 file to ensure that all the required copies of Form 809 part 3 (memo copies) have been received, and note the number of the last receipt received. (Underscore, again, the requirement to ensure all Form 809 memo copies are filed daily). It may also be necessary to review recent transmittals to monitor official receipts received. Submission Processing Center remittance processors should ship reorders for 809 books within one workday of receipt. If a reorder cannot be granted, contact the requestor by telephone within one workday. File copies of completed reorder requests with 809 memo copies.

Taxpayer Assistance Center employees may use the Preliminary Reorder Certification for Forms 809 Receipt for Payment of Taxes for Taxpayer Assistance Center Employees" Form (Exhibit 3.8.45–97)or memorandum containing same information for this request with approval of their local management.

Every Form 809 Receipt for Payment of Taxes book contains two copies of a Request for Forms 809, Receipt for Payment of Taxes forms. Authorized 809 users in area offices use these forms to request an 809 book from the Campus. This is because only one 809 book may be assigned at any time. The request is submitted in duplicate. The Campus keeps one copy of the request and uses the other to send the receipt book via overnight traceable mail. Acquire the SEID or unique identifier number. Authorization to acquire a Form 809 book is maintained in the Form 809 memo copy file.

In order to provide quality customer service at our Taxpayer Assistance Center (TAC) offices, TAC employees may reorder an 809 book after issuance of the 40th receipt of their current book, with managerial authorization. Also, follow these procedures to request more than one book for high demand areas, with management authorization. Management authorization is required as TAC managers have to ensure internal control over receipts and treat with the same care and precision handling as cash.

Upon issuance of Form 809 receipt number 40 , the Taxpayer Assistance Center employee should provide their immediate manager with the following:
1 A copy of the receipt number 40, (or last receipt issued),
2. Request for Forms 809, Receipt for Payment of Taxes forms.
3. Preliminary Reorder Certification for Form 809 Receipt for Payment of Taxes for Taxpayer Assistance Center Employees form (Exhibit 3.8.45–97)
4. Copies of Forms 795/795A for the two previous days.
5. The TAC manager must review and verify information submitted by the employee, sign the authorization section of the Preliminary Reorder Form, and fax the certification form to their designated Submission Processing Center liaison.

The Taxpayer Assistance Center employee should void the original receipt request from their current 809 book. Send the voided request form to the Submission Processing center with the next Form 795/795A Daily Report of Collection Activity, identifying they sent a preliminary request. The group manager will review and authorize issuance of a new book.

TAC managers with inventories of unissued 809 receipt books must perform an inventory of those books at least once each quarter. See IRM 21.3.4 .

Upon receipt of an authorized Preliminary Reorder Certification for Form 809 Receipt for Payment of Taxes for TAC Employees (Exhibit 3.8.45–97), remittance processors should first determine if all receipts are accounted for. This requires a physical review of the employee's 809 file. (This is another reason, 809 part 3's must be filed daily).

If the Submission Processing center receives an incorrect or incomplete reorder request, contact the manager of the employee. Submission Processing centers must maintain an accurate listing of authorized 809 users and their respective managers to the area director level.

The Submission Processing center remittance processor will take the following actions upon receipt of an authorized preliminary reorder form:
1. Date stamp and sign receipt of Preliminary Reorder Certification for Form 809 Receipt for Payment of Taxes for Taxpayer Assistance Center Employees.
2. Review Forms 809 and 795/795A or any other official remittance transmittal files of the requesting employee to ensure amount of receipts are accounted for as authorized by the manager.
3. Issue a new Form 809 Receipt for Payment of Taxes book within two workdays via overnight traceable mail to the requesting employee, using Form 3210, Document Transmittal. (Contact the requestor within two workdays if unable to ship timely.)
4. Monitor incoming receipts to ensure the employee has used remaining receipts in order before they have started the new book. If a problem arises, the TAC manager should be contacted immediately for follow-up.
5. File Preliminary Reorder Certification for Form 809 Receipt for Payment of Taxes for Taxpayer Assistance Center Employees form along with supporting documents with the closed 809 book.

The requesting employee should expect a four or five workday turnaround time beginning with the time/date of transmission of faxed request. (Consider the time of day of the request). Employees should contact their manager if the Campus has not met the timeframe, and a disruption of service to taxpayers is imminent. The manager will subsequently complete any required follow-up actions and advise the employee.

Form 5919 Teller's Error Advice is issued to inform field office managers when critical errors are observed. Critical errors are those errors associated with potential fraud, such as incorrect money amounts remitted, late remittances, or critical errors on Form 809. See IRM 3.8.45.28.2 for list of critical errors. A remittance processor cannot correct critical errors on Form 809. Rather, a substitute posting voucher can be created so as not to delay deposit of funds. See Exhibit 3.8.45–99 , Form 5919 Teller's Error Advice Issuance Criteria. A response is required for errors that require the manager to return something, such as a check, or Form 809 receipt or acknowledgement.

Critical Errors are errors associated with waste, fraud, abuse and embezzlement, and require the signature or electronic acknowledgement of the field office manager. Some may require an item be returned with the response, i.e. if part 3 of Form 809 or a remittance is missing.Critical error items are:

Any other error that impedes operational efficiency is a noncritical error. These can include any error that is are too numerous to list. Noncritical errors do not require + issuance of Form 5919 to a manager, a response, or signature. and will not be reflected on the Trends and Patterns Report.. See also Exhibit 3.8.45–99 How to Handle Errors.

Steps to prepare Form 5919 Teller's Error Advice:

There must be a control file set up in a centralized area determined by the unit manager for hard copy responses to 5919s. The files must be kept in chronological order by field office, distinguished by operating division. Distinguish between operating divisions because you may have occasion to issue Form 5919 to various field offices which includes various operating divisions.

Generally, the field office manager is allowed 15 days from the date of issuance to respond. If there is a business need, such as a remittance missing, shorten the required response time. Issuing electronic Form 5919 may lessen the response time to 10 workdays. The originator's response is accompanied by Part 2 of the Form 5919.

If no response is received within the requested timeframe, issue a second Form 5919 annotated "Second Request" in the comments section and in the subject of the e:Mail if issuing electronically. Issue the second request on the next business day after the response is overdue. Generally, the response date for second requests is five workdays from the date of issuance. Again, if there is a business need for a shorter response time, shorten it. Send parts one and two of the 5919 to the Group Manager of the employee making the error. When second notices are not responded to, send parts one and two to the appropriate territory manager. If there are multiple Forms 5919 without responses, send a listing to the territory manager with a cover memorandum from Operations Manager, Receipt and Control. If the territory manager fails to respond, the manager should contact the official by telephone.

When using the 809 Database to electronically issue Forms 5919 via e:Mail, and only a signature is required, you may flag the e:Mail to automatically respond when the message is Read. You must first verify you are sending the 5919 to the correct official. Refer to Microsoft Outlook Help menu for specific instructions on the use of Outlook.

In order to avoid delaying the deposit, when a Response Required is issued, if you can determine how the payment should be applied, follow the procedures in the table below:

It is important to keep proper trails for audits. Many times the originating employee inadvertently lists documents and does not submit the documents, or vice versa.

If any required part of Form 809 is missing, you must immediately issue Form 5919 to retrieve from the manager. If the manager's response is that the part 3 cannot be retrieved, i.e., you must request a copy of part 4 and verify the payment posted. Include the manager's statement and proof of payment posting in the part 3 (memo copy) audit file. If the payment did not post, follow IRM 3.0.167 General — Losses and Shortages. Report to TIGTA Office of Investigations and the local remittance security coordinator.

Forms 5919 may be destroyed after three years from the date of issuance, except for 5919's issued on 809 receipts. Forms 5919 for 809 receipts will be destroyed according to the retention criteria for Form 809. Contact the local Records Officer for additional guidance.

Non-critical errors include errors on: