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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

3.8.45.4.18  (02-01-2009)
Mutilated Checks

  1. Mail-opening equipment can mutilate checks during processing. When this occurs, remittance processors should tape the check back together, place in a transparent sleeve, and deposit thru ISRP. 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.

    Note:

    If your financial institution charges extra to process the transparent sleeve thru ISRP, deposit thru Manual.

3.8.45.4.19  (02-01-2009)
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 above procedures as a Returned Refund Check.

3.8.45.4.20  (02-01-2009)
Basic Manual IDRS Research for Payment Perfection

  1. The IDRS Decision Assisting Program (IDAP) Tool for Payment Perfection should be utilized to perform IDRS research. 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:SUMRY to display an index of all tax modules available for a SSN. If no modules exist on SUMRY, check IMFOLI.IMFOLTdisplays specific tax module amounts, dates including CSED and a listing of posted transactions. If multiple tax periods have the same CSED date, apply to the earliest tax period. Determine where(tax-period and MFT) and how (transaction code) the payment should be applied. Use: SUMRY to display an index of all tax modules for an EIN. If no modules exist on SUMRY, check BMFOLI. BMFOLT displays specific tax module amounts, dates including CSED and a listing of posted transactions. If multiple tax periods have the same CSED date, apply to the earliest tax period.
    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 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.
    e.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.    
    f. Receive a payment and research indicates there is no balance due on IDRS or CFOL. Post payment to the current year due. 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).
    g. 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  (02-01-2009)
Payment Perfection Procedures For Manual Processing

  1. This section contains procedures for Manual Processing.

3.8.45.5.1  (02-01-2009)
Payment Posting Vouchers (Non-ISRP)

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

    1. Form 3244, Payment Posting Voucher. See Exhibit 3.8.45-3.

    2. Form 809, Posting Voucher.

    3. IDRS Printout used in lieu of Form 3244.

    4. Correspondence.

    5. Taxpayer Envelope with name and address.

3.8.45.5.2  (02-01-2009)
Out of Area Non-Master File (NMF) (Transshipment of NMF Returns/Documents)

  1. If a campus receives a remittance with a NMF return/document or a payment that is intended for another campus, it is classified as an Out of Area Non-Master File Return/Document. The receiving Campus must deposit the remittance at their Campus timely and then transship the credit and return to the Cincinnati campus. The Accounting Operation performs the transshipment. Process all Out of Area NMF remittances as follows:

    1. Use return/document as source document.

    2. Green rocker remittance amount on balance due line.

    3. Number return/document.

    4. Date stamp with IRS received date.

    5. Process payment through ISRP if possible. Otherwise, process as a Manual Deposit.

    6. Notate on Form 813A, Out of Area NMF.

    7. Include return/document and all required supporting documentation in Accounting package for transshipping.

  2. Out of Area NMF payment procedures must be followed when processing remittances of $100 million or more received with returns from IMF taxpayers. The receiving campus must deposit the payment and the Accounting Operation will transship the return to CSPC NMF function for processing.

3.8.45.5.3  (02-01-2009)
Out of Area Master File Returns/Documents with Payments

  1. If a campus receives a remittance with a Master File return/document that is only processed at another campus, it is classified as "Out of Area Master File Returns/Documents" . The out of area receiving campus must deposit the remittance at their campus and then transship the return to the correct processing campus. Refer to IRM 3.10.72.

  2. Process the remittances as follows:

    1. Use return/document as source document.

    2. Refer to Document 6209 IRS Processing Codes and Information for the appropriate transaction code and MFT.

    3. Green rocker remittance amount on balance due line.

    4. If a payment posting voucher is prepared, attach a copy to the back of the return/document.

    5. Date stamp with the IRS received date.

    6. Process the payment thru ISRP/ISRP.

    7. When remittance processing is complete, transship the return or document to the appropriate campus.

    Note:

    The purpose for the green rocker dollar sign/check mark or the 3244 is to indicate to the receiving campus that the return/document did have a payment attached.

3.8.45.6  (02-01-2009)
Specified Forms and Fees Processing

  1. This section describes processing procedures for a variety of specific form and fee types.

3.8.45.6.1  (02-01-2009)
Form 706 Series, Processed at CSPC

  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.

  2. If a remittance is received at a campus other than the CSPC campus for the 706A, 706NA or 706QDT, process the remittance through Manual 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.

3.8.45.6.1.1  (02-01-2009)
Other than CSPC Form 706 Series

  1. If a remittance is received at any other campus for the following forms, route to Payment Perfection to establish the Entity, and then process the remittance through ISRP. This is applicable to Form 706, Form 706-GSD, and Form 706-GST.

  2. If a remittance is received with Form 706GS(D-1), this is a non-remit return. Process the remittance as a 706GSD through ISRP and transship Form 706GS(D-1) to CSPC as a non-remit document.

3.8.45.6.1.2  (02-01-2009)
Form 706A U.S. Additional Estate Tax Return

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

    1. Tax Class 6 (5)

    2. Document Code 84

    3. Blocking Series 500599

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

3.8.45.6.1.3  (02-01-2009)
Form 706D U.S. Additional Estate Tax Return - Under Code Section 2057

  1. Form 706D remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 84

    3. Blocking Series 650699

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

3.8.45.6.1.4  (02-01-2009)
Form 706QDT U.S. Estate Tax Return for Qualified Domestic Trusts (With Form 706A and 706NA)

  1. Form 706QDT remittances are processed as follows:

    1. Tax Period YYMM year ending

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

    3. Tax Class 6 (5)

    4. Document Code 85

    5. Blocking Series 519524

    6. MFT 53

    7. TC 610

    8. Abstract Number 220

3.8.45.6.1.5  (02-01-2009)
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 519524

    4. MFT 53

    5. TC 670

    6. Abstract Number 220

3.8.45.6.1.6  (02-01-2009)
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 590599

    4. MFT 53

    5. TC 670/570

    6. Abstract Number 141

3.8.45.6.1.7  (02-01-2009)
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 000999

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

3.8.45.6.1.8  (02-01-2009)
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 519524

    4. MFT 53

    5. TC 670

    6. Abstract Number 220

3.8.45.6.2  (02-01-2009)
Forms 1120 Series Notices, Processed at CSPC

  1. All Form 1120 Series Notices will be processed in CSPC as NMF.

  2. If a remittance is received at a campus other than the CSPC campus for the 1120 Notice Series, process the remittance through Manual 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.

3.8.45.6.2.1  (02-01-2009)
Form 1120-Interest Charge-Domestic International Sales Corporation 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

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

    1. TC 670

    2. MFT 23

    3. Tax Period

3.8.45.6.2.2  (02-01-2009)
Form 1120-ND Return for Nuclear Decommissioning Trust Funds and Certain Persons

  1. 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

3.8.45.6.2.3  (02-01-2009)
Form 1120PC US Property and Casualty Insurance Company Income Tax Return

  1. 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

3.8.45.6.3  (02-01-2009)
Form 4720 Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC, Processed at OSPC

  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 9.

  3. Review Form 4720 as follows:

    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 thru 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 4720A. 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 thru Manual Deposit using TC 610.

      Note:

      After preparing form 4720A, if the taxpayer has annotated "Request for Abatement under IRC 4962 " or similar wording on the return, photocopy all pages of each 4720A 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 thru 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.

    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 4720A. 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 thru Manual Deposit using TC 610.

      Note:

      After preparing forms(s) 4720A, 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) 4720A.

    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 9, convert to Form 4720-A.

3.8.45.6.4  (02-01-2009)
Form 5330 Return of Initial Excise Taxes Related to Employee Benefit Plans, Processed at OSPC

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

    1. TC 670/570

    2. MFT 76

  2. If processing the original Form 5330 (IDRS indicates a TC 150 is present), process 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 706. Research BMF using the SSN with definer "V" . If the account is not established on the BMF, OSPC Entity must establish the account so that the payment will post. If the tax period is not indicated on Form 5330 and there is no filing requirement on IDRS, post the payment to the current tax period after it is established by OSPC Entity; otherwise follow the PPU research instructions in 3.8.45.4.21.

  4. Form 5330 is used as the source document and processed through ISRP (EIN) or Manual Deposit (SSN). For SPCs other than OSPC, after processing remittance transship return to OSPC using "Out of Area Master File Procedures" 3.8.45.5.3.

    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 OSPC, follow Out of Area NMF procedures. See IRM 3.8.45.5.2 , 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 but is missing a plan number, and the plan number cannot be identified through research, edit the plan number "000" and process through Manual Deposit.

3.8.45.6.5  (02-01-2009)
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

3.8.45.6.6  (02-01-2009)
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

3.8.45.6.7  (02-01-2009)
Payment Vouchers

  1. This section describes processing procedures for Payment Vouchers.

3.8.45.6.7.1  (02-01-2009)
BMF Payment Vouchers, 940 Series

  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 ISRP using program 15503.

  2. Form 940V and 940V-EZ

    1. TC 610

    2. MFT 10

    3. Tax Period

    4. After processing, hold for five days and then shred.

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

  3. Form 941V

    1. TC 610

    2. MFT 01

    3. Tax Period

    4. After processing, hold for five days and shred.

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

  4. Form 943V

    1. TC 610

    2. MFT 11

    3. Tax Period

    4. After processing, hold for five days and shred.

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

  5. Form 944V

    1. TC 610

    2. MFT 14

    3. Tax Period

    4. After processing, hold for five days and shred.

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

    Form 945V

    1. TC 610

    2. MFT 16

    3. Tax Period

    4. After processing, hold for five days and shred.

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

    Note:

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

3.8.45.6.7.2  (02-01-2009)
Form 1040V

  1. Form 1040V Scannable, Payment Voucher, will be processed through NDP600 Transport. If NDP600 Transport is unavailable, process through ISRP. The over-the-counter version of Form 1040V may be used at the option of any individual taxpayer who has a balance due.

    1. TC 610

    2. MFT 30

    3. Tax Period 20XX12

    4. If the voucher is not scannable, route to ISRP.

  2. If Form 1040V is attached to a current year Form 1040, move the Form 1040V to the back of Form 1040 and process as a true form through the 7 day grace period after April 15 of each year.

    1. Form 1040 will be sorted Full Paid and Part Paid.

    2. Forward Form 1040 as Full or Part Paid to the Batching Function.

  3. A prior year Form 1040V, including the over-the-counter version, is an imperfect document. Research IDRS to see if a TC 150 return has posted. If so, process the payment as a TC 670 because it is subsequent to the posting of the return. If not, post all prior year Form 1040V vouchers with TC 610.

    Note:

    Form 8855V, Telefile, will be processed as Form 1040V with a TC 610.

3.8.45.6.8  (02-01-2009)
Schedule H (formerly Form 942)

  1. Loose Schedule H (formerly Form 942) (Household Employment Taxes). When a loose Schedule H is received with payment, assume it is for an IMF account unless the word "Trust" or "Estate" is written in the name line area of the Schedule H. Use the Schedule H as a source document and process through ISRP.

  2. If the SSN is present on the Schedule H, process using the following procedures:

    1. TC 670 and TC 570

    2. MFT 30

    3. Tax Period

    4. Forward loose Schedule H to Code and Edit Function, with notation "Loose IMF Schedule H" .

  3. If both the SSN and EIN are present, process the Schedule H under the SSN as specified above.

  4. If the word "Trust" or "Estate" is present, use the EIN and process as follows:

    1. TC 670 and TC 570

    2. MFT 05

    3. Tax Period

    4. Forward loose Sch. H. to Code and Edit Function, with notation "Loose BMF Schedule H" .

  5. If the word "Trust" or "Estate" is not present and a SSN is not present, research account for taxpayers' SSN.

    1. If the SSN is found, process as specified in (2)(a) above.

    2. Attempt to find and process with the SSN even if the taxpayer provided an EIN.

    3. If the SSN is not found, research NAMEB for EIN. Process the Sch. H as specified in (1) above, indicating where the payment was applied after editing "Loose BMF Schedule H" or "Loose BMF Schedule H, XXXX06" .

  6. If neither EIN or SSN is present, forward Schedule H and remittance to Entity for assignment of EIN.

  7. Oddball Schedule H: If loose Schedule H is received with an EIN and a BMF name line and it is not a Trust or Estate, process payment using BMF rules above. If the loose Schedule H is received with an EIN and an IMF name line, process payment following IMF rules above.

  8. Process household tax remittance without a Schedule H using the following procedures:

    1. If EIN or SSN is notated on the remittance, process using the applicable procedures above. Prepare a dummy Schedule H, with notation "Loose Schedule H" and indicate where payment was applied. Forward dummy Schedule H to Code and Edit Function.

    2. If remittance has no identifying number, research NAMEI and/or NAMEB for an identifying number. Process the remittance using applicable procedures above. Prepare a dummy Schedule H, with notation "Loose Schedule H" and indicate where payment was applied. Forward dummy Schedule H to Code and Edit Function.

3.8.45.6.9  (02-01-2009)
Form 1065 U.S. Return of Partnership Income

  1. Form 1065, U.S. Return of Partnership Income, is an information return.

    1. When received with remittance and there is no other indication of payment application, post to MFT 06 using TC 670 and process Form 1065 as non-remittance.

    2. If form(s) are attached and remittance matches or adds up to balance due IRS (on forms), process remittance with balance due forms. Process Form 1065 as non remittance.

  2. When the Form 1065 is received with remittance and the top of the Form is annotated "Publicly Traded Partnership" or "PTP" or "3.5% tax rate" is annotated above the "Ordinary Income" line 21 of the Form 1065. The remittance will be processed to the partnership (BMF) as follows:

    1. Process thru ISRP

    2. TC 610

    3. Tax Class 2

    4. MFT 06

  3. If Form 1065 is received with remittance, and is tax year 1999 or prior; and the top of the form is annotated "Publicly Traded Partnership" or "PTP" or ""3.5% tax rate" is annotated above the "Ordinary Income" line 21 of the Form 1065. The remittance will be processed to the partnership (NMF) as follows:"

    1. Process thru Manual Deposit

    2. TC 610

    3. Tax Class 6

    4. MFT 06

    5. Doc. Code 35

      Note:

      For Campuses other than OSPC, transship Form 1065 to OSPC when remittance processing is complete.

3.8.45.6.10  (02-01-2009)
Form 2287(C), Advice of Dishonored Check

  1. If a remittance is received for the replacement of a dishonored check, process the Form 2287(C) as a TC 670 with the following exceptions:

    1. If a replacement check is for current Form 1040ES (MFT 30) payment (payment received before 8/31/XXXX), post the amount listed in the "Amount of the Check" field as a TC 430 and the amount listed in the "Penalty Amount for Unpaid Check" as a TC 670.

    2. If replacement check is for a current Form 1041ES (MFT05) payment, post the amount listed in the "Amount of Check" field from Form 2287 as a TC 660 and the amount listed in the "Penalty Amount for Unpaid Check" as a TC 670.

3.8.45.6.11  (02-01-2009)
Form 3552 (Part 3), Prompt Assessment Billing Assembly

  1. If a remittance is received with Form 3552 (Part 3) in response to a proposed assessment, process through ISRP with TC 670/570 and appropriate MFT. Edit the following if not present:

    1. Name Control

    2. SSN/TIN

    3. TC 570

    4. MFT

    5. Tax Period

    6. Date Stamp

3.8.45.6.12  (02-01-2009)
Form 4219 Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes

  1. Form 4219, Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes, received with Form 941, process Form 941 thru ISRP leaving Form 4219 attached.

    1. TC 610

    2. MFT 01

    3. Tax periods 03, 06, 09 and 12

  2. Form 4219, received without Form 941, indicate EIN from line 2 and tax period from line 4 specified on Form 4219 and process thru ISRP;

    1. TC 670

    2. MFT 01

    3. Forward Form 4219 to appropriate function

3.8.45.6.13  (02-01-2009)
Form 5329 Additional Taxes Attributable to Qualified Retirement Plans (including IRAs, Annuities) Without Form 1040

  1. Form 5329, Return for Additional Taxes Attributable to Qualified Retirement Plans (including IRA's), Annuities and Modified Endowment Contracts. If received with Form 1040, attach Form 5329 to Form 1040 and process through ISRP.

    1. TC 610

    2. MFT 30

    3. Tax Period

  2. Form 5329, if received without 1040, apply payment to the taxpayers' account and process through ISRP using:

    1. TC 670

    2. MFT 29

    3. Tax Class 4

    4. Tax Period

  3. Route Form 5329 to Accounts Management Operations.

  4. If a Form 5329 is received without Form 1040 and there is insufficient information to post the payment to a taxpayers' 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.

3.8.45.6.14  (02-01-2009)
Form 8082 Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR)

  1. Form 8082, Notice of Inconsistent Treatment or AAR. If there is no indication of how to apply the payment, use as source document and process through ISRP:

    1. TC 670 with TC 570

    2. MFT 30

    3. Tax Period

    4. Use taxpayers' SSN

    5. Forward Form 8082 to Examination Branch.

3.8.45.6.15  (02-01-2009)
Form 8615 Tax for Children Under Age 18 Who Have Investment Income or More Than $1,700.00

  1. Form 8615, Tax for Children Under Age 18, Who Have Investment Income of More Than $1,700.00, received with remittance, with or without a TDI, process through ISRP with the child's SSN:

    1. TC 670 with TC 570

    2. MFT 30

    3. Tax Period

    4. Forward Form 8615 to Image Control Team.

3.8.45.6.16  (02-01-2009)
Form 8752 Required Payment or Refund Under Section 7519

  1. Form 8752, Required Payment or Refund Under Section 7519. Section 7519 on Forms 720 have been deleted and are now processed on Form 8752 through ISRP:

    1. TC 610

    2. MFT 15

    3. Tax Period YYYY12.

3.8.45.6.17  (02-01-2009)
Employee Plan (EP) Returns, 5300 and 5500 Series

  1. Monies for EP returns are posted to either ANMF or BMF.

    1. MFT 74 - Form 5500 series for 1984 and prior years are posted to ANMF. Refer to 3.8.45.7.13, Remittance Received with CP 213 (I) or (N).

    2. MFT 76 - Form 5330, Form 5558 for a Form 5330, and Form 5500 for 1985 and subsequent years are posted to BMF.

  2. If the Form 5500, 5500-C/R or 5500-EZ is not an original and has any correspondence or notices attached, route to OAMC, EP Accounts, M/S 6270, Ogden, Utah.

  3. If a Form 5500, 5500-C/R and/or Form 5500-EZ is received it is annotated as not being an original, the form must be routed to EP Accounts M/F 6270 located at OAMC, Ogden, Utah. ALL correspondence, notices or other documents received with the Form(s) must be left attached and routed to EP Accounts also.

  4. When Forms 5500, 5500-C/R or 5500-EZ are received with remittance and Form 5330 is attached:

    1. Detach Form 5500 series and route to EP accounts M/S 6270 at OAMS, Ogden, Utah.

    2. Route Form 5330 with remittance to ISRP (EIN) or Manual Deposit (SSN) for processing.

  5. When Form 5500, 5500-C/R or 5500-EZ are received with remittance and Form 5330 is not attached, prepare Form 3244 or equivalent and number as BMF (MFT 74).

    1. TC 670 and TC 240 (enter in other debit box), edit remittance amount for both TCs.

    2. MFT 74.

    3. Tax Period and plan number. The plan number must be entered on the Form 3244 in the Tax Period block; for example, 200312/003.

    4. Write applicable "Form 5500" series and "Penalty" in the "Remarks" section.

    5. Process original Form 3244 with Form 5500 series and copy of Form 3244 attached through Manual Deposit.

    6. Transship Form 5500 series following IRM 3.10.72 .

  6. If photocopy of first page of Form 5500, 5500-C/R or 5500-EZ is received from EFAST vendor with remittance, prepare Form 3244 or equivalent, and number as NMF (MFT 74).

    1. TC670 AND TC240 (enter in other debit box.) Edit remittance amount for both TCs.

    2. MFT 74

    3. Tax period and plan number. The plan number must be entered on the Form 3244 in the Tax Period block, for example 200312 / 003.

    4. Write applicable Form 5500 series and penalty in the Remarks section.

    5. NMF screen print of transcript for Form 5500 Account for 1984 and prior years must be attached to Form 3244. Form 3244 and copy of the return is not valid supporting documentation. Refer to IRM 3.17.46 , Campus and MCC Accounting and Data Control Automated Non-Master File Accounting, for approved supporting documentation in lieu of an ANMF screen print or transcript.

    6. Process original Form 3244 with Form 5500 series and copy of Form 3244 attached through Manual Deposit.

    7. Transship Form 5500 and supporting documentation per IRM 3.10.72.

  7. If remittance is attached to Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, follow procedures in IRM 3.8.45.7.27. Verify which form the extension is being filed for.

    1. If Part II is completed for Form 5330, is checked or no box is checked, route to ISRP (EIN) or Manual Deposit (SSN) for deposit. Form 5558 must be transshipped to OSPC Code and Edit Function.

    2. Part II is completed for Form 5500 (1984 and prior years), 5500-C/R, or 5500-EZ is checked, prepare Form 3244 for NMF processing. Use TC 670 and TC 240 (in "Other Debit" box), Edit appropriate "Form 5500" series and "Penalty" in remarks section. A three digit plan number must be present. If no plan number is present, contact OSPC Entity. Route Form 5558 to OSPC Code and Edit Function.

3.8.45.6.18  (02-01-2009)
DFVC (Delinquent Filer Voluntary Compliance) Program

  1. The DFVC Program or Delinquent Filer Voluntary Compliance Program incorporates the 5500 series of forms.

    Note:

    Form 5500EZ Filers do not qualify for the DFVC Program

  2. Form 5500 or 5500-C received with checks made payable to "U.S. Department of Labor" with notation "DFVC Program" , "Apprenticeship and Training Plan/DFVC Program" , or "Top Hat Plan/DFVC Program" should not be deposited by IRS.

    1. Forward the return and the check to the following address by mail:

      DFVCP
      P.O. Box 70933
      Charlotte NC 28272-0933

    2. Forward the return and check to the following address by Private Delivery Service:

      DFVCP
      QLP Wholesale Lockbox-NC0810
      Lockbox #70933
      1525 West WT Harris Blvd
      Charlotte NC 28272

  3. Forms 5500 or 5500-C received with checks made payable to IRS with notation of "DFVC Program" should be deposited by IRS as in procedures in 3.8.45.6.17 . See IRM 3.10.72 for transshipping procedures.

3.8.45.6.19  (02-01-2009)
Exempt Organization Returns

  1. An exempt organization is one which meets the exemption status based on many factors contained within the groups charter of organization. These are all processed at the Ogden Submission Processing Campus.

  2. If a remittance is received with Forms 990, 990BL, 990EZ, 990PF, 990T, 5227, or 1041A process as follows:

    1. TC 610

    2. The MFT varies as follows:

        Form 990, MFT 67 (BMF and NMF)
        Form 990BL, MFT 56 (NMF)
        Form 990EZ, MFT 67 (BMF and NMF)
        Form 990PF, MFT 44 (BMF and NMF)
        Form 990T, MFT 34 (BMF and NMF)
        Form 5227, MFT 37 (BMF) and MFT 57 (IMF)
        Form 1041A, MFT 36

    3. Tax Period

    4. Edit remittance amount in green

    5. Route to Manual Processing

    6. For Campuses other than OSPC, follow Out of Area NMF procedures for transshipment to OSPC. See IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents.

3.8.45.6.20  (02-01-2009)
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, 4461A, 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 ISRP using Account Symbol 202411.

    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.

    5. If cash is received for a User Fee, a separate Form 809 is required.

3.8.45.6.20.1  (02-01-2009)
Installment Agreement User Fees (IAUF)

  1. Installment Agreement User Fees are processed through ISRP 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.

      Note:

      DPC 47 and 48 for reduced fees are currently not valid for BMF accounts. Apply these fees to BMF accounts using TC 670/570 with no DPC.

  2. IAUF payments may be split. For example, if $145 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 taxpayers' 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 hand side of the CP 521 or CP 523 Do not research. Apply the user fee to the taxpayers' 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, 8, 11 or 13, apply the full amount of the payment to tax only.

    2. If IADIS shows EFT CD-1 ANDthe IA User Fee Code is 4, 7 or 12, apply the user fee to the taxpayers' account and apply the remaining balance to tax. (See the IAUF Codes in 3.8.45.7.44.1(5) 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, 7, 10 or 12 apply the user fee to the taxpayers' account and apply the remaining balance to tax. (See the IAUF Codes in 3.8.45.7.44.1(5) below to determine the user fee amount due).

    4. If IADIS shows EFT CD-0 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(5) below to determine the user fee amount due).

    5. 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 taxpayers' 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)

    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

    9 = User Fee Not Applicable

    10 = Reduced Originator Fee on Original IA Due ($43.00)

    11 = Reduced Originator Fee on Original IA Paid ($43.00)

    12 = Reduced DDIA Fee Due ($43.00)

    13 = Reduced DDIA Fee Paid ($43.00)

    14 = If User Fee Code field is blank, apply to tax

3.8.45.6.21  (02-01-2009)
EP/EO User Fees Other than CSPC

  1. Process through Manual Deposit.

  2. EP/EO User Fees Remittances received with Forms 1023, 1024,1028, 5300, 5301, 5303, 5307, 5308, 5310, 4461, 4461-A, or 6406 and Forms 8717 and 8718 are for entities requesting tax exempt status. Process them using the following procedures:

    1. Photocopy check and attach to front of form.

    2. Green rocker the document with the payment amount on lower right corner.

    3. Encode remittances. Identify "EP/EO User Fees on encode tape" .

    4. Prepare Form 2221 in triplicate. Notate on Form 2221 "Out of Area EP/EO User Fee" .

    5. Prepare DT using Account Symbol 20-2411.

    6. Route memorandum copy of DT, 2 copies of Form 2221 and documents to the Accounting Operations for transferring to CSPC.

  3. If the EP/EO User Fee Form does not have an EIN, research IDRS. If an EIN cannot be determined, forward to the Entity function to assign a temporary EIN.

  4. Forms 1128, 2553 and 3115 are sometimes received with remittances. These DO NOT require payment. The remittance should be returned back to the taxpayer along with Letter 2340C.

3.8.45.6.21.1  (02-01-2009)
EP/EO or Form 906 Closing Agreement Consolidated at CSPC

  1. Process Anonymous Agreements through Manual Deposit:

    1. Prepare F3244 if one is not received.

    2. TC 640

    3. Tax Class 6 (4)

    4. Document Code 62

    5. Send F3244 and all correspondence to Accounting Operations with the deposit package.

    6. Notate on Form 813A "Out of Area NMF Deposit for campuses other than CSPC" .

  2. Taxpayer Agreements processed as Manual Deposit:

    1. Prepare F3244 if one is not received.

    2. TC 670

    3. Tax Class 6 (4)

    4. Document Code 27

    5. Send F3244 and all correspondence to Accounting Operations with the deposit package.

3.8.45.6.21.2  (02-01-2009)
User Fees for Letter Rulings, Determination and Option Letters, for Campuses other than CSPC

  1. Taxpayers who are requesting letter ruling, determination letters and opinion letters from the IRS are subject to a user fee for this service.
    Examples of such instances are as follows:

    1. Revenue Procedure 200316 provides guidance to taxpayers applying to the IRS for a waiver of the 60day IRA roll-over requirement, for this determination letter request the taxpayer is charged a fee.

    2. Revenue Procedure 8621, 1986-1C.B. 560 allow employees whose tip income are reported on Form 8027 to petition for a lower percentage rate on their allocated tips. For this determination letter request a user fee is charged.

  2. Process these types of payments as follows:

    1. Process through Manual Deposit.

    2. Photocopy check and attach to front of form/correspondence/documentation.

    3. Green rocker the document with the payment amount on lower right corner.

    4. Encode remittances, identify User Fee on encode tape.

    5. Prepare Form 2221 in triplicate, notate Out of Area User Fee.

    6. Prepare DT using Account 202411.

    7. Route Memorandum copy of DT, 2 copies of Form 2221 and documents to the Accounting Operation for transferring to CSPC.

3.8.45.6.22  (02-01-2009)
Freedom Of Information Act (FOIA)

  1. Freedom of Information Act and Right of Privacy, forward remittances and documents on Form 3210 to Disclosure for processing. See IRM 21.3.3.3.5.1(10) and 21.3.3.3.5.2(10).

3.8.45.6.23  (02-01-2009)
Form 1040C U.S. Departing Alien Return Processed at AUSPC Only

  1. Form 1040C, U.S. Departing Alien Return, is processed at the Austin Submission Processing Campus. Campuses other than Austin that receive these forms with payment may use the form as the source document. Process the remittance and 1040C:

    1. TC 610 and MFT 30.

    2. When remittance processing is completed, transship Form 1040C and all attachments to Austin using transmittal Form 3210.

    3. Date stamp Form 1040C.

    4. Include a copy of the remittance with Form 1040C.

3.8.45.6.24  (02-01-2009)
Form 1040NR Fiduciary U.S. Nonresident Alien Income Tax Return Processed at Cincinnati Only

  1. Form 1040NR, Fiduciary U.S. Nonresident Alien Income Tax Return, is processed at the Cincinnati Submission Processing Campus. Campuses that receive these forms with payment may use the form as the source document. Process the remittance and Form 1040NR:

    1. TC 610 and MFT 30.

    2. When remittance processing is completed, transship Form 1040NR and all attachments to Cincinnati using Form 3210.

    3. Date stamp Form 1040NR.

    4. Include a copy of the remittance with Form 1040NR.

3.8.45.6.25  (02-01-2009)
Last-in First-out Payments (LIFO) Processed at Cincinnati Only

  1. Last-in First-out (LIFO) Payments provide relief for automobile dealers that elected the LIFO inventory method and violated the LIFO conformity requirement by providing, for credit purposes, an income statement covering a taxable year that fails to reflect the LIFO inventory method in the computation of income.

  2. These payments will be processed by the Cincinnati Campus. However, if a remittance is received in a Campus other than Cincinnati, that receiving SPC must deposit the remittance and process as out of area NMF. See IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents. Accounting Operations will transfer to CSPC thru Form 2158, Credit Transfer Voucher. Upon receipt, CSPC will reclassify from Revenue Receipts to the General Fund.

  3. Each installment must be accompanied by a memorandum providing the information listed below:

    1. Name

    2. Address

    3. EIN

    4. Amount of taxpayer's LIFO reserve

    5. Total settlement amount

    6. Amount of the installment being paid

    7. Statement identifying the payment as the first, second and third installment; or a statement that the taxpayer elects to pay the entire amount in a single installment.

    8. Statement that the taxpayer agrees to all of the items of the revenue procedure.

  4. Each memorandum must be signed. At the top of the first page of the memorandum the following language must be typed or legibly printed: "PAYMENT OF ADDITIONAL AMOUNT UNDER REV. PROC. 97-44."

  5. If a memorandum is not received with the payment, contact the taxpayer. Do not apply payment to taxpayers' SSN or to any outstanding balances if unable to contact the taxpayer.

  6. Below are the deposit procedures for processing LIFO payments.

    1. Receive remittance and memorandum described above.

    2. Prepare Form 2221, Schedule of Collections, in triplicate.

    3. Prepare Deposit Ticket with Campuses ALC and address. Deposit to Account Symbol 20-3220.

    4. Route memorandum, copy of Deposit Ticket, and Form 2221 to Accounting Operations.

    5. Process as out of area NMF if remittance is received in a SC other than CSPC and deposited by the receiving SC. See IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents. Accounting Operations will transfer to CSPC thru Form 2158, Credit Transfer Voucher.

3.8.45.6.26  (02-01-2009)
DOJ/Criminal Restitution Program and DOJ Lockbox Payments Processed at Atlanta Only

  1. DOJ Lockbox Payments will be processed at Atlanta only

  2. Accounting personnel will prepare Form 3244 for processing.

  3. These remittances are processed through Manual Deposit.

  4. Process using Account Symbol 203220, Miscellaneous Receipts. After processing send Form 3244 to Accounting with the deposit package.

  5. Process as Manual Deposit as follows:

    1. Prepare Form 2221 (Annotate on top of Form 2221 DOJ/Restitution).

    2. Prepare deposit ticket with Account Symbol 203220.

    3. Route memorandum copy of deposit ticket, Form 3244, and Form 2221 to Accounting.

  6. Criminal restitution payments received at sites other than Atlanta SPC must be transshipped thru overnight traceable method to the following address:

    Internal Revenue Service
    ATTN: RACS/EXCESS, Stop 151 Restitution
    4800 Buford Highway
    Chamblee, GA 30341

  7. Contact the Atlanta SPC office at 770-454-1669, 1668 or 2057 if there are questions regarding the receipt and reconciliation of criminal restitution payments.

3.8.45.6.27  (02-01-2009)
Multiple and/or Split Remittances

  1. A multiple remittance (also referred to as "Multi" ) is two or more remittances received with a single return/document. When multiples need to be processed, follow procedures below.

  2. If the amount is entered in ISRP, do not green rocker.

  3. When processing accompanying return/voucher/notice as the posting document, the following applies:

    1. Ensure the total equals the document(s). Running a calculator tape is optional.

    2. Edit "M" and the number of remittances in the upper left hand corner of all remittances and the document.

  4. If a Form 3244 or equivalent needs to be prepared, edit the original document and route to the appropriate function as no-remit. Follow the above instructions to process the remittances.

  5. A split remittance is one remittance received with more than one return/document and/or more than one tax period.

    1. Verify remittance amount to tax periods, returns/documents balance due lines.

    2. If remittance and return/documents balance due lines agree, green rocker balance due lines.

    3. If money amounts disagree, starting with oldest tax period, apply remittance amount to returns/documents from oldest to most current.

      Note:

      Only one tax period and/or MFT can be allowed per posting document.

    4. If last return/document is underpaid, edit the remittance amount in green to the left of the balance due line.

    5. If last return/document is overpaid, apply excess remittance to the oldest CSED and edit remittance amount in green to the left of the balance due line.

    6. Edit "S" and the number of returns/documents in the upper left hand corner of all remittances and all returns/documents if less than 50. If split consists of more than 50, edit the remittance only. Process thru ISRP or Manual Deposit.

    7. Prepare adding machine tape for each split return/document edited amount and total. Route to ISRP labeled as "splits."

  6. Multiples and Split remittance(s) and returns/documents received combined are processed thru ISRP or Manual Deposit as follows:

    1. Verify remittances with return(s) /document(s) balance due lines.

    2. If amounts agree, green rocker balance due lines.

    3. If amounts don't agree, edit remittance amount in green to the left of the balance due lines.

    4. Remittance that over paid the balance due must be applied to the document with the oldest CSED.

    5. Remittance that under paid the balance due subtract the difference from the most current year taxes owed, edit the amount to the left of the balance due line. Process remaining returns/documents as non-remittances.

    6. Edit "M" and number of checks in the upper left corner of remittance and returns/documents.

    7. Edit "S" and number of returns/documents in upper left corner of remittances and returns/documents.

    8. Prepare adding machine tape for each Multi/Split return/document edited amount and total. On the same tape list check amounts and total. Both totals must equal.

    9. Attach adding machine tape to first return/document. Process through ISRP or Manual Deposit.

    Example:

    3 checks received with one return = M3; 5 documents received with one check = S5; 3 checks and 5 documents received = M3 S5.


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