3.8.45  Manual Deposit Process (Cont. 3)

3.8.45.7 
Amended Returns and Remittances Received with IRS or Taxpayer Correspondence

3.8.45.7.24  (01-01-2011)
Form 2350

  1. Form 2350, Application for Extension of Time to File U.S. Income Tax Return (for U.S. Citizens and Resident Aliens abroad who expect to qualify for special tax treatment).

  2. Use Form 2350 as a source document and process through ISRP.

    1. TC 670.

    2. MFT 30 (IMF) and MFT 51 (BMF).

    3. Edit remittance amount on Form 2350 and forward to Code and Edit Function.

3.8.45.7.25  (01-01-2011)
Form 8868

  1. Form 8868, "Application for Extension of Time to File on Exempt Organization Return" .

  2. If Form 8868 is for master file returns:

    1. Date stamp

    2. Route to ISRP

  3. If Form 8868 is for NMF Form 990BL and Form 6069:

    1. Date stamp

    2. Green rocker remittance amount

    3. Batch separately according to form number

    4. Route to Manual Deposit

    5. Transship Form 8868 to CSPC

3.8.45.7.26  (11-04-2011)
Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes

  1. Form 4768, Application for Extension of Time to File or Pay U.S. Estate Tax Return (Generation-Skipping Transfer), for Form 706, Form 706A, Form 706D, Form 706NA, and Form 706QDT

  2. If entity is verified as established on IDRS thru CC BMFOLE, CC INOLET or CC ENMOD, use form as a source document and process through ISRP.

    1. MFT 52.

    2. TC 670.

    3. Tax Period 000000.

    4. Edit in green the remittance amount on Form 4768.

    5. Stamp Received Date on Form 4768 and forward to Estate and Gift function in CSPC.

  3. If entity is not established on IDRS, forward to the Entity function.

3.8.45.7.27  (01-01-2011)
Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, OSPC Only

  1. Form 5558, Application for Extension of Time to File Certain Employee Plan Returns may be submitted to extend the due date of either Form 5500 series or Form 5330.

  2. These forms are processed at OSPC. For campuses other than OSPC, deposit the money thru ISRP and transship Form 5558 to OSPC.

  3. For OSPC, edit remittance amount in top margin of Form 5558 or edit rocker on line 1b.

  4. When remittance is attached to Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, verify in Parts II and III which form the extension is being filed for.

3.8.45.7.28  (01-01-2011)
Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns

  1. Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns.

  2. Some Businesses may file a separate Form 7004 for an automatic six month extension of the following:

    1. Form 1120, Form 1120 (Subchapter T Coop), Form 1120A , Form 1120C, Form 1120-F, Form 1120FSC, Form 1120-H, Form 1120L, Form 1120SF, Form 1120ND, Form 1120PC, Form 1120POL, Form 1120REIT , Form 1120RIC, Form 1120S, Form 1120-SF, MFT 02

    2. Form 706GS(D), MFT 78

    3. Form 706GS(T), MFT 77

    4. Form 990-C, MFT 33

    5. Form 1041N, Form 1041QFT, MFT 05

    6. Form 1042, MFT 12

    7. Form 1065B, MFT 06

    8. Form 1066, MFT 07

    9. Form 3520A, MFT 42

    10. Form 8612, MFT 89

    11. Form 8613, MFT 14

    12. Form 8725, MFT 27

    13. Form 8831, MFT 89

  3. Beginning in 2009, some Businesses may file a separate 7004 for an automatic five month extension of the following:

    1. Form 1041, MFT 05

    2. Form 1065, MFT 06

    3. Form 8804, MFT 08

  4. Edit the following information on the source document:

    1. Received date.

    2. Master File Tax (MFT) Code.

    3. Transaction Code (TC).

    4. Tax Period edited in YYMM format.

  5. Route to ISRP.

  6. Corporations may choose to attach Funds Transferred Electronically thru ACH document to Form 7004. When this happens, follow Canceled Check procedures. IRM 3.8.45.4.6.

3.8.45.7.29  (01-01-2011)
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 in green.

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

3.8.45.7.30  (03-23-2012)
Federal Tax Deposit (FTD)

  1. On January 1, 2011, the Federal Tax Deposit (FTD) Program was decommissioned. Taxpayers are now required to make FTD Payments electronically through the Electronic Federal Tax Payment System (EFTPS). However campuses may still receive remittances with Form 8109 and Form 8109B (FTD Coupons), or correspondence indicating FTD payments.

    1. When received without a return utilize the FTD Coupon as the payment voucher and process the payment through ISRP with the Name Control, TC 670, tax period, appropriate MFT and DPC 99.

      IF Then
      If received with correspondence attached detach correspondence, date stamp, edit remittance amount and route to appropriate function.
      If an Advice of Credit, Form 2284, is also received attach to the back of the Form 8109 and process the payment according to IRM 3.8.45.7.30(1)a above.
      If Form 2284 and multiple Form 8109s are received with no remittances forward both Form 2284 and Form 8109 back to Extracting/Sorting Unit.
      If Form 8109 or Form 8109B contains Name or EIN changes photocopy and forward to Entity Control Function.
    2. Request preparation of a Letter 335C to be sent to the taxpayer alerting them they can no longer use Form 8109 to make a payment. Forward the request for the Letter 335C to the Correspondence function with the following instructions annotated on the request:

      Source of Receipt Action to Take
      For Lockbox Receipts (Now being received from the United States Post Office until 1/1/2012) Prepare Letter 335C using paragraphs G, H, and Q

      Note:

      Paragraph Q requires a phone number, use 1-800-829-4933.

      For Campus Receipts Prepare Letter 335C using paragraphs H and Q.

      Note:

      Paragraph Q requires a phone number, use 1-800-829-4933.

    3. If the remittance is made payable to a bank, overstamp the remittance and process appropriately through ISRP or Manual Deposit.

    4. If received with a return or an extension:

      • Staple Form 8109 or Form 8109B coupon or correspondence behind return or extension.

      • Date stamp if applicable.

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

      • Process thru ISRP.

      • If Form 8109 or Form 8109B contains a name or EIN change, photocopy the form and forward photocopy to Entity Branch.

  2. The St. Louis Lockbox Bank discontinued processing FTD Payments on January 7, 2011. The PO Box addressed to the St. Louis Lockbox Bank is currently shut down, however the United States Post Office will forward the payments to the Cincinnati Campus address below for processing. Beginning January 1, 2012 the United States Post Office will begin returning the payments back to the sender:


    Internal Revenue Service
    Cincinnati Service Center
    201 West Rivercenter Blvd
    Covington, KY 41011
    Stop 31



    Use instructions in IRM 3.8.45.7.30(1) above to process these payments.

3.8.45.7.31  (02-22-2013)
Information Returns (IRP)

  1. Payments received with information Form W-2G, Form 1096, Form 1098, Form 1099 series, Form 5498 and Form 8038 cannot be used as a source document.

    1. Follow procedures in IRM 3.8.45.10.2, Analysis of PPU Presearch

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

    3. If application of the payment cannot be determined, follow Unidentified Remittance procedures in IRM 3.8.45.10.3.

    4. Route forms to appropriate function.

  2. If a payment is received with an Enterprise Computer Center at Detroit (ECC-DET) EIN #38-1798424 in response to a Form 1099 Series Information Return with or without correspondence or a tax return, DO NOT apply the payment to this EIN. The payment should be returned to the taxpayer. Return the payment with a Letter 2689C, Letter 4480C or Form 8121 using an open paragraph with the following: We are returning your payment of [$$$] dated [mm/dd/yyyy]. The payment appears to have been made in response to our sending you a Form 1099[???] for calendar year [yyyy]. Form 1099[???] is not a tax bill; it provides information on interest income that you should report if you are required to file a tax return. Therefore, no payment is required.

3.8.45.7.32  (01-01-2011)
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, IRS Refund Repayments.

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

  4. With Form 720, edit appropriate quarter. Process through ISRP.

    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 ISRP:

    1. TC 670

    2. MFT 03

    3. Tax Period

3.8.45.7.32.1  (05-16-2014)
Patient-Centered Outcomes Research (PCOR) Fee (IRS Number 133)

  1. Payments received with Form 720 reporting IRS Number 133 indicating Patient-Centered Outcomes Research (PCOR) Fee should always be processed with a 2nd Quarter tax period.

    Note:

    When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133 use the IRS received date to help determine the tax period. If the return was received Dec. 31st or prior, process to the preceding 2nd quarter (i.e. Form 720 reporting IRS Number 133 received on Dec. 31, 2013 process as 201306). If the return was received after Dec. 31st, process to the subsequent 2nd quarter (i.e. Form 720 reporting IRS Number 133 received on Jan. 2, 2014 process as 201406).

3.8.45.7.33  (11-04-2011)
Statute Cases

  1. If the Statute of Limitations is in jeopardy, payments require special consideration. The Statute of Limitations is 2 years and 10 months from the normal due date of return.

  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 ISRP 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: Cycles, Criteria and Critical Dates 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. Any return(s) with indication of "Carryback" or "Net Operating Loss" ("NOL"), or the "NOL" box is checked on an Amended Return. Keep package together and expedite to ICT/CIS.

    2. Marked IRC "6020 (b)" or "NFR" or "Secured by Exam/Collections", "Secured by TE/GE", "Secured by TE/GE EP Exam", "Process as Original".

    3. "TC 59X" or "ICS" notated on the face of the return or "Process as Original" with a TC 59X in the margin.,

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

    5. Returns received with IDRS Letter 2566 or Letter 2566R or Letter 3219-N, or pink Form 3531 attached, or "ASFR" notated in top margin, or envelope including a "loose" tax return (no notice or letter attached) is addressed to the ASFR P.O. Box or Mail Stop in Austin or Fresno - route to ASFR.

    6. Marked "RD" in the top margin (indicates "Return Delinquency" and should be routed to CSCO, unless circled. If the literal "RD" is circled and the return is signed or notation of signed jurat on the "Sign here" line, route to Statute, if imminent.

      Note:

      If there is no "TC 59X" edited on the return, but the literal "Process as Original" is edited, route to Statute if it meets Statute criteria.

      Note:

      Do not route returns marked "NFR" to Batching; route to ICT.

3.8.45.7.34  (01-01-2011)
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 ISRP should be processed through ISRP.

  2. Process returns/documents as source document.

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

    1. TC 610 (returns only) - Send the check and posting document to RPS. After processing, route the return for transshipment no later than the following business day.

    2. Appropriate MFT.

    3. Edit received date and remittance amount in green on return/document.

  4. If the remittance cannot be processed through ISRP, 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. See IRM 3.10.72 for appropriate site.

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

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

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

3.8.45.7.35  (01-01-2011)
Miscellaneous Revenue Collections, or Conscience Fund

  1. Account 6400, Miscellaneous Revenue Collections, or the "Conscience Fund" , should be credited when remittances are received from taxpayers that are not assessable on their accounts. This account should be credited when any of the following are received:

    1. A letter or note is enclosed indicating the remittance is to ease the taxpayers conscience. A majority of these payments are anonymous.

    2. A letter or note with no signature and no indication that the remittance is for the Conscience Fund, and there is insufficient information on the remittance or envelope to identify the taxpayer.

    3. Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest.

  2. When a remittance is received that should be deposited in 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 ISRP.

    3. Once remittances have been finalized and balanced through the transport, the total deposit will print on a OTCnet 215A Deposit Ticket under the appropriate account symbol. See IRM 3.17.63.15.33, Account 6400 Miscellaneous Revenue Collections (Nominal Account, CR Normal Balance).

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

3.8.45.7.36  (04-14-2014)
Prepaid Photocopy Fees

  1. Requests for photocopies or transcripts of Tax Returns are received on Form 4506, Request for Copy of Tax Return, Form 4506-T, Request for Transcript of Tax Return and Form 4506-T EZ, Short Form Request for Individual Tax Return Transcript. A current copy of each form is on the electronic publishing website, http://publish.no.irs.gov/catlg.html . 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 and Income Verification Services Function (RAIVS) by expedite delivery daily to ensure timely response to the customer.

    Note:

    Form 4506, 4506-T and 4506-T EZ should be processed at the campus it is received. Do Not transship to another campus. See IRM 3.5.20.5.1.2(4).

  2. IRM 3.5.20.2.6, Pre-processing Review of Requests for Return/Return Information with Remittance, 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 and Control.

  3. Other ways you may receive photocopy fees include:

    1. Form 8157, Check for Copy of Tax Return Not Accepted by Banks. Forward copy of Form 8157 with the deposit ticket to Accounting.

    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 Remittances procedures, IRM 3.8.45.10.3. If further assistance is needed, contact the RAIVS function.

  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 $50.00 .

    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.

      Exception:

      Unless payment is received, provide copies of tax forms free of charge in the following cases shown in the table below. Contact the RAIVS function when any questions arise.

      If: Then:
      the Taxpayer or Preparer is in a FEMA declared Disaster Area. Refer to http://serp.enterprise.irs.gov/databases/irm-sup.dr/disaster.dr/disaster-toc.htm Provide copies.
      Taxpayer Advocate Cases Provide copies.
      IRS receives correspondence from a member of Congress or the White House staff Provide copies.
      Requests for copies of tax returns received as a result of applications for Qualified Mortgage Subsidy Bonds

      Note:

      These are always low-income taxpayers. Since most lenders will accept "account information" which is free of charge, requests for copies should be few.

      Provide copies.
      the taxpayer was "Killed in Terrorist Action" (KITA)/"Killed in Action" (KIA)/"Astronauts Killed in the Line of Duty" after December 31, 2002. Provide copies. Contact your local "KITA Coordinator" . Refer to http://serp.enterprise.irs.gov/databases/who-where.dr/kita_kia_coordinators.dr/kita_kia_coordinators.htm for the contact information.
      the taxpayer is serving in a Combat Zone Provide copies. Refer to IRM 5.19.10.6.2, Combat Zone Qualified Individuals and Areas.
      another Federal Agency requests copies. Provide them.
      IRS initiated the contact Provide copies to the filer. If POA requests it, use CC CFINQ to ensure they are authorized.
  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 IRM 3.5.20.2.6.2, Reviewing Requests for Completeness Prior to Processing.
    1. Edit money amount on the request in green pen.

    2. Deposit payment per (10) of this subsection.

    3. 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 IRM3.5.20.2.6.2, Reviewing Requests for Completeness Prior to Processing. Reject request with remittance per (8) of this subsection. Include Form 13873-I/B, “IMF/BMF RAIVS Reject Checksheet”, and a blank Form 4506, 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 5 of Form 4506, or where the taxpayer is telling IRS to send information to someone else on correspondence.

    If And Then
    The request is for item(s) requiring a fee (e.g., one or more copies of tax returns) or combination of items requiring a fee and no fee (e.g., Form W-2 information requests do not require a fee) No payment is received
    1. Review for completeness per IRM 3.5.20.2.6.2, Reviewing Requests for Completeness Prior to Processing.

    2. Reject request with remittance per (8) and (9) of this subsection.

    3. Include Form 13873-I/B, “IMF/BMF RAIVS Reject Checksheet”, and a blank Form 4506, 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 IRM3.5.20.2.6.2, Reviewing Requests for Completeness
    1. Reject request per (8) and (9) of this subsection.

    2. Include Form 13873-I/B, “IMF/BMF RAIVS Reject Checksheet”, and a blank Form 4506, explaining a new check is needed.

    3. 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. Form 4506 or Form 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.

  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. Cash 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. Cash of $10.00 or more will be returned to the taxpayer by certified mail.

    6. Record volume of rejects to OFP 210-34000. Count by tax periods, not by form.

  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 the "current address" is not listed in Block 3 of Form 4506. Mail the rejected request to the taxpayer at the address of record (e.g., pending address on CC ENMOD, or posted address on CC ENMOD or CC INOLE).

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

    3. A request by a taxpayer (designating information be sent to a third party) may be rejected back to a third party, rather than the taxpayer, if the only missing item is payment for photocopy.

      Note:

      If the only item missing is the payment for photocopy, the request may be rejected back to the third party.

  10. Route perfect Form 4506 to ISRP for processing under Account Symbol 20X6877. Batches must not exceed 100 items.

3.8.45.7.37  (01-01-2011)
EO Photocopy Fees

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

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

  3. Edit remittance on document in green pen.

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

    2. Input data through ISRP as Account Symbol 20X5432.5 for E.O. CDs.

  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 (OSPC, MS:6716).

3.8.45.7.38  (01-01-2011)
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.

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

3.8.45.7.38.1  (11-13-2014)
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 an application fee but either 20% of the amount offered or one installment payment. However, if the taxpayer qualifies for the low income waiver criteria, neither the application fee nor payment is required. See Form 656-B, Offer in Compromise (Booklet) for additional information. COIC payments will be processed through the Payment Check Conversion (PCC) System at Memphis and Brookhaven.

  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 IRM 3.8.45.7.38.2 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
    California, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Vermont, Virginia, West Virginia, Puerto Rico, or has a foreign address Brookhaven Internal Revenue Service
    COIC Unit
    Stop 680
    1040 Waverly Ave
    Holtsville, NY 11742
    Alaska, Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin, Wyoming Memphis Internal Revenue Service
    COIC Unit
    Stop 880
    5333 Getwell Rd
    Memphis, TN 38118
  7. All offer packages must be transshipped through overnight traceable method through Form 3210, Document Transmittal. Form 3210 must list each taxpayer's name and the amount of the related remittance.

3.8.45.7.38.2  (09-19-2014)
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 CC 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 correspondence/documentation received with payments on previously accepted offers must be transshipped to Brookhaven or Memphis. Use the chart below to determine which Campus the correspondence/documentation should be forwarded to. Payment Posting vouchers or slips of paper that state "payment enclosed," "check enclosed," "here's my payment" or similar, should not be considered as correspondence/documentation and therefore should not be transshipped with the correspondence/documentation.

    If the taxpayer resides in Forward correspondence/documentation to
    California, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Vermont, Virginia, West Virginia, Puerto Rico, or has a foreign address Brookhaven Internal Revenue Service
    MOIC Unit
    Stop 663
    1040 Waverly Ave
    Holtsville, NY 11742
    Alaska, Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin, Wyoming Memphis Internal Revenue Service
    MOIC Unit
    Stop 813
    5333 Getwell Rd
    Memphis, TN 38118
  6. All documentation must be transshipped thru overnight traceable method along with Form 3210, Document Transmittal. List on Form 3210 the name of each taxpayer for whom documentation is being forwarded.

3.8.45.7.38.3  (01-01-2011)
Sale of Seized, Acquired and Collateral Property Payments (For Sites Other Than Ogden)

  1. Reporting seized, acquired and collateral properties to the Redesign Revenue Accounting Control System (RRACS) 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.

3.8.45.7.39  (10-12-2011)
Overpayment Notices

  1. Remittances received with an overpayment notice (CP 12, CP 12M, CP 13, or CP 24), post these payments with a TC 670/TC 570.

3.8.45.8  (01-01-2011)
MFT 31 Payments

  1. When payments are received for MFT 31, process through ISRP.

3.8.45.9  (03-14-2014)
Processing Collection Payments

  1. ISRP and IDRS have been programmed to accept input of a two digit Designated Payment Code (DPC) for payments secured by Collections personnel. DPCs are two-digit codes which serve a three-fold purpose.

    • Facilitate identification of payments.

    • Indicate application of payment to a specific liability.

    • Identify an event which resulted in a payment.

  2. Form 9465, Installment Agreement Request, when received with remittances, process through ISRP as follows:

    1. Use Form 9465 as a source document.

    2. Process Form 9465 with a TC 670 unless the Installment Agreement request is for a module with a zero balance and there is a TC 922 or TC 420 indicator. If the installment agreement is for an advanced payment of deficiency, use TC 640. See IRM 3.8.45.2.1, Valid Transaction Codes for Remittance Processing.

    3. MFT various.

    4. Forward Form 9465 to Compliance Services Collection Operations (CSCO) according to the state and the applicable BOD Code. Refer to IRM 3.10.72.15.5,Special Handling of Collection Forms – Form 9465, Form 433 Series, and Form 2159, Payroll Deduction Agreement for routing instructions.

3.8.45.9.1  (11-13-2014)
Designated Payment Codes (DPCs)

  1. DPCs do not apply to payments received on routine balance due notices, CP 501, CP 503 and CP 504.

  2. DPC applies to collection actions (such as levy, offer in compromise, etc.) on balance due accounts.

  3. The majority of ACS payments will have a DPC of "05" for levies. The following is a list of valid DPCs authorized for input:
    00=Designated payment code not present on posting voucher
    01=Payment is to be applied first to the Non-trust fund portion of the tax (BMF MFT 01, MFT 03, MFT 09, MFT 11 and MFT 12)
    02=Payment is to be applied first to the trust fund portion of the tax (BMF MFT 01, MFT 03, MFT 09, MFT 11 and MFT 12)
    03=Bankruptcy, undesignated payment
    04=Levy on state income tax refund
    05=Notice of levy (Used only for levy proceeds received from a third party in response to a Notice of Levy and does not include payments from the taxpayer as a result of a levy.)
    06=Seizure and sale
    07=Payment received expressly for full or partial payoff of the Notice of Federal Tax Lien
    08=Suit
    09=Offer in compromise (OIC)
    10=Manually Monitored Installment Agreement
    11=Bankruptcy, designated to trust fund
    12=Cash bond credit (allowed with TC 640 only)
    13=Deferred taxes (OBRA)
    14=Authorization given by taxpayer to apply payment to expired CSED account
    15=Payments received with Form 8519 taxpayer copy of Notice of Levy
    16=Federal Electronic Funds Transfer (EFT) Levy Payment
    17=EFT payroll deduction installment agreement payment
    18=Federal Payment Levy Program received from primary taxpayer
    19=Federal Payment Levy Program received from secondary taxpayer
    20=State Income Tax Levy Program
    21=Manual Posting of State Income Tax Levy Payments
    22=Alaska Permanent Fund Dividend Levy Program (Systemic Posting)
    23=Manual Posting of Alaska Permanent Fund Dividend Levy Program
    24=Freezes payment for amended returns, Form 1040X and Form 1120X.
    26=Court-Ordered Criminal Restitution Payments
    31=Credit only this spouse (MFT 31 ONLY)
    33=OIC application fee for offers submitted under TIPRA legislation
    34=OIC 20% lump sum or initial periodic payment under TIPRA legislation
    35=OIC subsequent payments made during the offer investigation under TIPRA legislation
    36=ACA 5000A Individual Shared Responsibility Payments
    43=ACA 45R Small Business Health Care Tax Credit
    50=Installment Agreement User Fee, initial fee
    51=Installment Agreement User Fee, Reinstatement fee
    53=Discharges
    54=Private Debt Collection (a.k.a. CCS)
    55=Subordinations
    56=Withdrawals
    57=IUD Foreclosures
    58=Redemptions; Release of right of redemptions
    59=Form 706 Liens Decedent Estate POCs
    99=Miscellaneous payment other than 01 through 14

3.8.45.9.2  (01-01-2011)
Collection of Child Support Payments

  1. When money is owed to another Federal or State Agency the Debtor Master File (DMF) controls and offsets excess money collected or refunds (to be issued to the taxpayer) to the controlling State or Federal Agency or Taxpayer Offset Program (TOP).

  2. When remittance is received indicating "Child Support" , research IDRS using CC TXMOD and/or CC IMFOLT. Remittance can be applied to that module.

  3. If TC 896/TC 898 is present, process payment as follows:

    1. TC 670

    2. MFT

    3. Tax Period

    4. Process through ISRP

  4. If TC 896/TC 898 is not present, process as follows:

    1. TC 670

    2. MFT 30

    3. Tax Period

    4. Post the payment to the last module on IDRS with a TC 150.

3.8.45.9.3  (07-28-2014)
Lien Payments-CSPC Only

  1. Most Notice of Federal Tax Lien payments will be received in P.O. Box 145595 with Letter 3640 /Letter 3640A/Letter 3641/Letter 3172 or Form 668(Y). These payments will receive priority for processing.

  2. Prepare Form 3244 with TC 670 and DPC 07.

  3. Process through ISRP.

  4. Forward all correspondence to Compliance, Stop 8420G.

3.8.45.9.4  (11-13-2014)
Automated Collection System (ACS)

  1. Remittances received through the special ACS post office box must be processed using ISRP whenever possible.

  2. With remit notices, correspondence or remittance only processing is done using the following procedures:

    1. Edit a payment posting voucher with the missing information.

    2. Annotate source documents with the appropriate DPC. See IRM 3.8.45.9.5(5).

  3. Route change of address information and correspondence to the ACS Unit in Compliance.

  4. All third party payments received with or without Form 668A(C), Form 668W(C), and Form 668W(ACS), Notices of Levy, should be processed through PPU using the Payment Perfection IAT tool whether perfect or imperfect. Process with DPC 05. If DPC 05 is not present edit DPC 05, applicable TC and the check amount to the left of the box labeled Total Amount Due.

  5. Form 8519, Taxpayer's Copy of Notice of Levy, process as follows:

    1. Form 8519, Form 668A(C) and Form 668W(C) are similar in design, except for the DPC.

    2. Form 8519 contains all pertinent taxpayer information needed for processing.

    3. Edit DPC 15, the applicable TC and the check amount to the left of the box labeled Total Amount Due.

    4. Underline the tax period. When multiple tax periods are levied, process Full Paid or Part Paid remittances as perfect. Apply remittance to the earliest tax period as the payment should split and roll to the appropriate tax period.

3.8.45.9.5  (11-13-2014)
ACS IDRS Manual Research for Payment Perfection

  1. The following subsection provides the definition for ACS payments and instruction in the use of Designated Payment Codes (DPC). The Integrated Automation Technologies (IAT) Tool, (formerly known as the IDRS Decision Assisting Program (IDAP)) should be used when researching all third party ACS payments whether perfect or imperfect. This subsection also provides general guidance for manual IDRS research and application of ACS payments if the IAT system is unavailable.

  2. An ACS payment is usually sent to one of the ACS P.O. Boxes listed in section 3 below and can be defined as:

    1. A payment received with a Form 668-A, "Notice of Levy" . This is a one time garnishment to the taxpayers bank account that will be sent to the IRS by a financial institution as a third party check.

    2. A payment received with a Form 668-W, "Notice of Levy on Wages, Salary, and Other Income" , These payments are remitted to the IRS through the taxpayer's employer as a third party check.

    3. A Levy payment received without a Form 668-A or Form 668-W.

    4. A payment received from the taxpayer in response to Form 8519, "Taxpayers Copy of Notice of Levy."

    5. Federal Agency Levy payment that are issued on Department of the Treasury checks.

      Note:

      If over-stamping is necessary, be careful not to obscure the taxpayer's SSN.

    6. Third Party payments received with obsolete IRS ACS P.O. Box addresses that have been forwarded by the United States Post Office to one of the consolidated ACS sites. These payments should be treated as if they were received directly in the Consolidated ACS sites P.O. Box. Follow all the procedures and definitions outlined in this subsection when processing these payments.

      Note:

      For items forwarded by the USPS, use the date the items are received by the consolidated sites as the IRS Received date. If by chance they have been transshipped from another IRS office, use the date that it was received by the first IRS office.

    7. Payments received from the taxpayer on a personal check, cashiers check, or money order and the taxpayer indicates it is intended as an ACS payment, e.g., an ACS (LTnn) Letter is attached.”

    8. Any payment received from a third party in which the third party indicates on the check or posting document it is a "garnishment."

  3. The above mentioned remittances are received by the consolidated ACS Payment Processing Sites P.O. Box addresses listed below:

    Wage and Investment
    Fresno
    Internal Revenue Service
    P.O. Box 24017
    Fresno CA 93779
    Control Base Number:
    0772200001
    Kansas City
    Internal Revenue Service
    ACS Support
    Stop 5050 or without a stop number
    P.O. Box 219420, 219236 or 419236
    Kansas City MO 64121-9236
    Control Base Number:
    0772200001
    SB/SE, TE/GE and LMSB
    Cincinnati
    Internal Revenue Service
    ACS Correspondence
    P.O. Box 145566
    Cincinnati Ohio 45250-5566
    Control Base Number:
    0272000001
    Philadelphia
    Internal Revenue Service
    ACS Correspondence
    P.O. Box 8208 or P.O. Box 57
    Philadelphia PA 19101-8208
    Control Base Number:
    0566100001
      Kansas City
    Internal Revenue Service
    P.O. Box 219690
    Kansas City MO 64121-9690
    Control Base Number:
    0566100001
  4. The following chronological steps should be taken when applying the payment to the taxpayer's account.

    1. If a payment is received in the ACS P.O. Box and the TIN is not present, research CC NAMEI (IMF) or CC NAMEB (BMF) to attempt to identify the correct TIN. If the TIN is identified, continue to (d). In all cases below, as payments are applied, route correspondence to ACS Support.

    2. If unable to locate the TIN using CC NAMEI or CC NAMEB, research the Remittance Transaction Research (RTR) System, then make a telephone call using the telephone number on the check, or obtain the telephone number from directory assistance in order to obtain TIN (IRM 3.8.45.4.17). If the TIN is identified, continue to (d).

    3. If still unable to determine the TIN, deposit as an "Unidentified Remittance File" (URF) with an annotation of "ACS payment" .

    4. If the TIN is identified, research with CC SUMRY. Apply the payment to the earliest unexpired CSED with an open collection Status 22. If multiple periods have the same CSED date, apply the payment to the earliest tax period. If there is no tax period with an open collection Status 22, continue to (e).

      Note:

      If CC SUMRY/CC TXMOD are unavailable, research CC IMFOLI/CC BMFOLI to determine which modules have a balance due. Use CC IMFOLT/CC BMFOLT to research all balance due modules for the earliest unexpired CSED.

    5. If CC SUMRY shows modules in Status 60, research CC IADIS to determine the Installment Agreement Locator Number (ALN). The last four positions of the ALN determine the actions taken in IRM 3.8.45.9.5(4)(e)1, IRM 3.8.45.9.5(4)(e)2, and IRM 3.8.45.9.5(4)(e)3 below. The ALN appears on the IDRS IADIS screen in the following format:

      AGREEMENT LOCATOR NO 1234-567890-XXYY

      Note:

      IRM Exhibit 5.19.1-9, Installment Agreement Locator Numbers, provides an explanation of the XXYY fields of the ALN.


      1. If the payment has an ALN with XX08, apply payment to the earliest unexpired CSED with a DPC 05. The ALN of 08 that appears in the YY positions is defined as a Continuous Wage Levy, from ACS or a Revenue Officer. The YY position denotes conditions affecting the agreement.
      2. If the ALN is other than XX08, apply payment to the earliest unexpired CSED with no DPC.

    6. If research shows there is no balance due in Status 22 or Status 60, check CC INOLES for X-Ref TIN. If Filing Status Code is "2" (IMF only) and the Debt Indicator Field is "I" (IMF and BMF), apply payment to the X-Ref TIN using research procedures in (d) and (e). If payment cannot be determined through paragraphs (d) and (e), or a X-Ref TIN cannot be found, or if a X-Ref TIN is found but the Filing Status Code is other than "2" (IMF only) and the Debt Indicator Field is other than "I" continue to (g).

    7. If there is no current or prior Status 22 or Status 60 modules for the primary or X-Ref TIN, apply payment to the most recent tax module on the primary TIN. Apply DPC Code according to instructions in IRM 3.8.45.9.5(5). If there is no prior "LEVY" category control set, create a control base to ACS thru CC ACTON only when using DPC 05. When controlling the account use the correct Control Base Number listed above in IRM 3.8.45.9.5(3), which is based on BOD and State mapping.

      Note:

      DO NOT apply a DPC Code to a taxpayer payment.

  5. The following table outlines what DPC should be used for each type of ACS payment.

    Type of ACS Payment Heirarchy DPC
    Any type of payment received with Form 668-A, Notice of Levy DPC 05
    Any type of payment received with Form 668-W, Notice of Levy on Wages, Salary or Other Income DPC 05
    Any type of payment received with Form 8519, Taxpayer's Copy of Notice of Levy DPC 15
    Federal Agency Levy payments that are issued on Department of the Treasury checks DPC 05
    Third Party payments not in Status 60 received with current or obsolete IRS ACS P.O. Box addresses DPC 05
    Third Party payments in Status 60 with ALN XX08 received with current or obsolete IRS ACS P.O. Box addresses DPC 05
    Third Party payments in Status 60 without ALN XX08 received with current or obsolete IRS ACS P.O. Box addresses No DPC
    Payments received from the taxpayer

    Note:

    DPC 15 should be used whenever a payment is received with Form 8519.

    No DPC

3.8.45.10  (01-01-2011)
PPU IDRS Presearch

  1. The Integrated Data Retrieval System is used to research taxpayers accounts to determine or verify proper application of remittances.

3.8.45.10.1  (01-01-2011)
PPU General

  1. Remittances without necessary identification to apply to Master File (MF) and Non Master File (NMF) must be researched thru the Integrated Data Retrieval System (IDRS), the Automated NMF System and the Automated Collection System (ACS), when appropriate. Apply payment to the Unidentified Remittance File (URF) if research or telephone contact to taxpayer fails to identify payment application and/or instructions. (Refer to IRM 3.8.45.10.2(5))

  2. Remittances must be deposited within 48 hours of the received date of principal mail drop. Maximum of up to 96 hours if indications are that a follow-up action will result in applying a credit to the taxpayer's account. Deposit Activity's perfection function's research capability and expertise are limited and should not extend beyond terminal research, telephone contacts to taxpayers and requests for Command Code MFTRA, CC BMFOL, CC IMFOL, or Automated NMF transcripts.

    1. Managers must maintain an inventory log of total receipts by received date, items researched, closures, telephone calls made, and items not deposited.

    2. Set up folders to strictly control each received date. Remittances of $50,000 and over must receive priority handling.

  3. Remittances of less than $1 may be deposited into the 6540 account by preparing Form 2007 , Schedule of Small Credits Cleared.

3.8.45.10.2  (11-13-2014)
Analysis of PPU Presearch

  1. Use taxpayer intent when applying payments. IDRS research is not necessary, if the taxpayer has designated:

    1. Form type

    2. Tax year or multiple tax years

    3. TIN (SSN or EIN)

    4. Name control

    5. There is no indication the payment is intended as an installment agreement payment,

    Apply remittance to the earliest tax period when taxpayer has designated multiple tax years. The payment should split and roll to the appropriate tax period. Post payment with the appropriate transaction code. (Refer to Document 6209 or IRM 3.8.45.2.1).

    Note:

    If the taxpayer has clearly designated the application of the payment but has not included all the above information, research IDRS for the missing information.

  2. If the taxpayer has not clearly designated the application of the payment and has not provided an IRS balance due notice, an in depth review and analysis may be necessary before the payment can be applied accurately.

    1. If a payment is received with a non remit form, research the taxpayer's account and apply the payment using the research instructions in IRM 3.8.45.4.20.

    2. If a payment is received from a third party and Levy or Garnishment is indicated on the remittance, payment posting voucher or documentation, process the payment following instructions in IRM 3.8.45.9.4(4)..

  3. The following steps discuss how to identify and process an installment agreement payment:

    1. Generally, taxpayer intent is used when applying payments; however, the taxpayer cannot designate the application of their installment agreement payment. If there is an indication that the payment is for an Installment Agreement, research for the earliest CSED unless an IRS Balance Due Notice is provided.

      Collection Status Codes
      12 Full Paid, no Balance Due
      20, 21, 54, 56, 58 1st thru 4th Notice, Balance Due
      22, 24 ACS Balance Due
      23 Below Tolerance, Balance due
      26 Field Collection Cases
      53 Currently not collectible, Balance Due
      60, 61, 63, 64 Installment Agreement, Balance Due
      71 OIC Pending

      Note:

      An expired CSED is one on which the statute date has passed (for example, 12/21/2004 is an expired CSED). Even if there is a balance due do not apply a payment to a CSED on which the statute date has passed.

    2. The earliest CSED is the one that is set to expire first.

    3. Status 14 is an Estate (Form 706 ) with Installment Agreement privileges. These payments require extra care. Failure to properly identify and apply the payment will result in default of the installment agreement and unnecessary collection action.

    4. If the payment exceeds the balance on the module with the earliest CSED, apply the entire payment to the earliest unexpired CSED. The system will automatically calculate the accruals and roll any remaining balance to the subsequent modules in CSED order.

  4. If the payment is not for an installment agreement (Status 60, Status 61, Status 63, Status 64 or Status 14), refer to the following:

    1. Use taxpayer intent when applying payments if the taxpayer has indicated where the payment should be applied and the TIN and Name Control are present. (See IRM 3.8.45.10.2(1))

    2. If there are no modules in balance due status and the payment is not an ACS/Levy payment, then research CC TXMOD/CC TXMODA or CC IMFOLT/CC BMFOLT for the following audit indicators: TC 420, TC 424, "L" Freeze Code. If any of these indicators are present on CC TXMOD/TXMODA or CC IMFOLT/CC BMFOLT, apply payment with TC 640 to indicate Audit, various MFTs.

    3. Check for CP 2000 indicators: TC 922, "F" Freeze Code, and/or Campus' URP control number. If any are present on CC TXMOD/CC TXMODA or CC IMFOLT/CC BMFOLT, apply payment with TC 640, MFT 30.

    4. Check for substitute for return (SFR) indicators, varies at each SC. Apply as TC 640, MFT 30.

    5. If IDRS/CFOL is unavailable, retain work until research can be accomplished. If remittance is $1,000 or larger, photocopy front and back of remittance for later research. Deposit the original remittance into the Unidentified Remittance File (URF).

  5. If research and/or telephone contact with the taxpayer (refer to IRM 3.8.45.4.17) does not result in the application of the payment, process as an Unidentified Remittance using the procedures in IRM 3.8.45.10.3.

3.8.45.10.3  (07-12-2013)
Unidentified Remittances

  1. Unidentified Remittance File (URF). Source documents that cannot be perfected because of insufficient information to apply remittance are input as unidentified payments.

  2. Review source document to insure the following are true:

    1. No information is available for application,

    2. Telephone contact cannot be made,

  3. Review each source document and edit in green the following information:

    1. Taxpayer's or business' full name. If the name is unknown or illegible, edit source document "TPUN" (Taxpayer unknown) or "UNKNOWN."

    2. Taxpayer's or business's full address.

    3. Date stamp source document.

    4. If no received date, use postmark on envelope.

    5. If no envelope or illegible postmark, use date on remittance .

      Note:

      See IRM Exhibit 3.8.44-3, Timely Postmark Checklist, for specific instructions on postmarks.

    6. Trace ID number. See IRM 3.8.45.2.3 for instructions on obtaining Trace ID numbers.

  4. Photocopy front of remittance for further presearch in Accounting Operations. Photocopy back of remittances made payable to taxpayer and endorsed to IRS.

  5. Using numbering machine, stamp unidentified remittance (UR) control number (DLN) on each source document. The DLN is a 14 digit control number assigned to each source document.

  6. Batch source documents in batches of 50 and by DO code.

  7. Prepare adding machine tape in duplicate for each batch by adding each remittance. These tapes are used to balance the URF deposit.

  8. Follow the below procedures for IDRS input of URF items:

    1. CC FMADD: Use to request CC URADD format establishing accounts on unidentified remittance file.

    2. Key in CC FMADD.

    3. Terminal response will be CC URADD screen

    Note:

    The IDRS terminal will keep a running total of remittances. Compare totals on adding machine tape with total on screen. If totals disagree, use CC URINQ to research each record to locate error. Accounting should be notified immediately whenever input errors are made. Input error corrections referenced in IRM 3.8.45.10.4 must be corrected the same day before overnight processing of Unidentified files to avoid a RACS out of balance condition with the URF File.

  9. When the Perfection function in Receipt and Control Operations adds the unidentified remittance to the URF, a three part letter (Letter 3731(CG)) can be generated to the taxpayer through IDRS if a name and address are available. However, permission to utilize the procedure to generate Letter 3731(CG) must be coordinated with the Local Accounting Unidentified Team before this option is used. If a name and address can be determined, the UR Notice Indicator in line 4 of CC URADD must be changed to a "Y" to generate the Letter 3731(CG).

    1. Overlay the "N" in the UR Notice Indicator field with a "Y". The UR Notice Indicator field is in line 4 of CC URADD following the MMDDYYYY field.

    2. 1ST NAME LINE should be overlaid with first name line of the taxpayer. The first four positions identify the name control.

      Note:

      Use a comma in the first name line only when the order has been changed to create the correct name control, i.e., Carter Rvoc Tr., John. The length of 1st Name Line is limited to thirty-five (35) characters.

    3. The "N" should remain in the UR Notice Indicator field if a Name and Address cannot be determined. No letter will be generated.

  10. Follow these procedures for CC URINQ input: (Used to verify remittance amount input to URF)

    1. Key in CC URINQ and press new line key three times.

    2. Key in unidentified control number in DLN format.

      Note:

      Each record within the file contains an unidentified remittance control number, amount, type of payment, status code, Letter 3731(C) indicator, name, address, TIN (if known), and all available payment and follow-up information. Line 4 indicates original remittance amount input.

  11. Prepare Form 813A from adding machine tapes, prepare Form 784 and OTCnet 215A Deposit Ticket. Send documents, Form 813A, Form 784, OTCnet 215A Deposit Ticket and second copy of encoding tapes to Accounting.

  12. Deposit the check on the same day as the CC URINQ input.

  13. When URF register is received on the following day, verify totals and prepare the Accounting package. Refer to (10) above.

3.8.45.10.4  (08-09-2012)
Correcting Unidentified Input Errors

  1. Many input errors are correctable. Requests to correct a Command Code URADD Unidentified input error should be coordinated with the Unidentified Team in Accounting, as Accounting is responsible for the integrity of the Unidentified database. Sensitive Command Codes URAPL, URENT and UROUT should not be used by Receipt and Control Remittance Perfection Technicians and employees assigned to 809 Receipt Books to correct the Unidentified Database. If Accounting grants permission to Receipt and Control to correct input errors, the requests should be forwarded to employees who do not handle remittances, are not Remittance Perfection Technicians or are not assigned to a 809 Receipt Book.

  2. Procedures for correcting the money amount are as follows:

    1. Key in CC FMAPL.

    2. Terminal response will be CC URAPL screen.

    3. Overlay CC URAPL with CC UROUT.

    4. Line 2: Key in Z or V over A; Z is to correct a money amount and V is to void the account.

    5. Line 3: Key in name control.

    6. Line 4: Key in correct money amount. Used only for a Z correction.

    7. Line 9: For Z correction, key in ENTERED IN ERROR. For V correction, key in ESTABLISHED IN ERROR.

  3. Follow these procedures to correct name:

    1. Key in CC URENT and press new line key.

    2. Key in name control on UR record and press new line key.

    3. Key in UR control number and press new line key.

    4. Key in name line.

  4. When all URF items are input, compare terminal totals with the adding machine tape totals.

    1. If totals balance, detach remittances from each source document. Keep in same sequence order as numbered documents. Forward source documents, remittances, and adding machine tape to Manual Deposit for further processing.

    2. If totals do not balance, verify remittance amount with the input terminal amount and make necessary corrections on the same day. Corrections that were made on terminal require adjustment on URF computer printout, which will be received the following day.

3.8.45.10.5  (01-01-2011)
Miscellaneous Input

  1. Miscellaneous IDRS uses include IDRS Remittance Processing, Address Changes and Levy Source input.

3.8.45.10.6  (01-01-2011)
Address Changes

  1. Route address changes to Entity.

3.8.45.10.7  (01-01-2011)
Levy Source Input

  1. If remittance is processed through ISRP you do not need to input the levy source. The bank trans data is captured through ISRP and downloads into Taxpayer Delinquent Account (TDA) to the Levy Source File.

  2. If remittance is processed through IDRS or Manual Deposit, follow the following procedures:

  3. CC LEVYS: Used to input bank(s) name and address from remittances. If current payment has been applied on CP 504 notice and balance is more than authorized dollar tolerances, input of levy source is required.

  4. Using information on the notice input CC TXMODA, refer to IRM 2.3.11, Command Code TXMOD, for input instructions.

  5. Do not input a levy source from a personal check to a business account, unless business is a sole-proprietor and the name on the check matches the business entity.

  6. Do not input a levy source from a business or corporate check to a personal account.

  7. If the account is in the proper status code overlay CC TXMODA with CC LEVYS, refer to IRM 2.4.31-1, CC LEVYS, for input instructions.

    Note:

    If nine levy sources exist, replace Employment Commission (EC) source using information from remittance.

  8. Review screen(s) for a levy which may already be present for bank. If so, no action is necessary. If levy hasn't been established, overlay CC LEVYS with CC LEVYE, refer to IRM Exhibit 2.4.31-2, CC LEVYE, for input instructions.

3.8.45.10.8  (11-13-2014)
STAUP for Foreign Remittances

  1. Input of CC STAUP is required on all taxpayer accounts when payments are received with a foreign remittance that will be deposited with Bank Of America, before sending to Manual Deposit for processing. Foreign deposit processing is the only payment processing activity that needs STAUP on an account. Refer to IRM 2.4.28, Command Codes STAUP, STATI and STATB. Restrictions on Remittance Perfection Technician's IDRS profiles, will prevent them from inputting Command Code STAUP. STAUP input must be a separate duty from payment processing, therefore STAUP must be completed by employees other than Remittance Perfection Technicians or employees that handle checks during deposit processing. Therefore the Accounting Hard Core Payment Tracer function has agreed to perform the input of the STAUP. Prepare a spreadsheet with the information needed to complete the STAUP for each foreign payment and route to the Hard Core Payment Tracer Team in Accounting. Copies of the STAUP action should be printed by the Hard Core Payment Tracer Team as described in IRM 3.8.45.10.8(2) below and routed back to the Receipt and Control function that performs the foreign deposit process along with a copy of the spreadsheet to be placed with the case file.

    Note:

    Arrangements may also be made to have the Hard Core Payment Tracer employee(s) come to Receipt and Control to perform the STAUP in lieu of routing the spreadsheet to the Accounting Hard Core Payment Tracer Team if that is more convenient.

  2. Input of CC STAUP causes a history item to be generated in the Action History Section of the tax module. The history item contains the current date, the terminal operator employee number, the Action History Source Code and the activity code "STAUP nnnn" (nnnn = the status requested plus the number of cycles delay, if present, requested by the terminal operator). Foreign Remittances should be delayed for 8 cycles. Print a copy of the STAUP output screen to keep with the case file. If the account is not in balance due status or was not previously in a balance due status, the STAUP will generate an error message. Print the STAUP error message screen to keep with the case file.

    Note:

    Attempts should not be made to place a STAUP on current year 1040ES payments or Unidentified payments as they will not have a balance due.

3.8.45.11  (11-19-2013)
Treasury Bonds

  1. Treasury Bonds are redeemed, at face value, upon owner's death. Proceeds of redemption are applied to estate taxes. If original Treasury Bond is received, transship to:

    Bureau of the Fiscal Service
    Division of Security Accounts and
    Definitive Accounts Section
    300 13th Street, S.W.
    Washington, D.C. 20239

  2. On a daily basis, the Division of Securities Operations of the Bureau of the Fiscal Service (Formerly Bureau of Public Debt (BPD)) will request Philadelphia Regional Financial Office to issue U.S. Treasury checks payable to "Director of Internal Revenue Service for the Benefit of Estate" for each Campus responsible for the estate. Also look for "FEAT PAYMENT" .

  3. Form PD 1782, Application for Redemption, will be faxed to each Campus approximately seven days before Treasury Check arrives. It will contain the following information:

    1. Name of decedent

    2. Decedent's TIN

    3. Date of decedents death

    4. Tax due date

    5. Redemption date

    6. Amounts

  4. Use faxed copy of Form 1782 as a source document. Use TC 678 credit, and received date stamped in upper left corner of faxed copy of Form 1782 as transaction date. Process through ISRP.

  5. Use these procedures to Presearch IDRS for account.

    1. If not found, use IDRS to establish account.

    2. If no address is available, use Campuses address to establish entity.

3.8.45.12  (01-01-2011)
Military Payments

  1. The Manual Deposit Function will send Military Payments including the Form DD214 and/or Form 3108 by UPS to:


    Internal Revenue Service
    Benefits and Service Team
    310 Lowell Street
    Andover, MA 01810
    ATTN: STOP 239

3.8.45.13  (01-16-2013)
Processing Refund Anticipated Loans Checks

  1. When a refund anticipated loan check is intercepted and returned by the bank, process the payment using a Form 3245 posting voucher, Refund Cancellation or Repayment. Post the payment with a TC 720 which will freeze the money from refunding or offsetting.

  2. Whenever a taxpayer returns a Refund Anticipated Loan check with correspondence indicating that ID theft may be involved, (typically in these cases, the taxpayer will claim they were not entitled to the refund) or if an Integrity & Verification Operation (IVO) (formerly AMTAP) issued letter (i.e., Letter 4115-C or Letter 4464-C) is attached, route the check and correspondence to the following address on Form 3210.

    Internal Revenue Service
    Attn: IVO Management
    PO Box 24012
    Fresno, CA 93779

3.8.45.13.1  (01-16-2013)
External Leads Program (ELP) Processing (Cincinnati and Fresno Only)

  1. Integrity & Verification Operation (IVO) (formerly Accounts Management Taxpayer Assurance Program (AMTAP)) receives leads from financial institutions as well as internal leads from business units throughout the IRS. External Leads involve questionable federal tax refunds from financial institutions and various other sources. External leads may involve Treasury checks, direct deposit/ACH, refund anticipation loans or checks and pre-paid debit cards.

  2. There are two ways the IRS receives refund repayments for external leads.

    1. Paper Check Deposit Processing

    2. Electronic Processing via the Transaction Reporting System (TRS) Credit Gateway

  3. The External Leads Program processes returned refunds identified as potentially fraudulent. IVO (formerly AMTAP) completes the research to identify impacted taxpayers, prepares Form 3245, Posting Voucher-Refund Cancellation or Repayment, for application to the appropriate taxpayer account and forwards to the Manual Deposit Function for processing.

3.8.45.13.1.1  (11-19-2013)
ELP Paper Check Deposit Processing (Fresno Only)

  1. The Fresno Campus will receive a Bank/Cashiers Check and spreadsheet from a bank with taxpayer information concerning Refund Repayment funds being returned to the IRS. The check and spreadsheet will be received from the bank addressed to the following P.O. Box address located in Receipt and Control:

    Internal Revenue Service
    Attn: IVO Management
    PO Box 24012
    Fresno, CA 93779

  2. Please use the following instructions for processing these checks.

    1. The check and spreadsheet will be opened in Extracting Second Sort and routed directly to the Manual Deposit Function.

    2. The check should be deposited through Manual Deposit and placed into the 4971 account. When preparing the OTCnet Deposit Ticket, Box 6 should contain “ELP” (External Leads Program (ELP)) to identify and alert Accounting that the deposit ticket amount should be journaled to the 4971 account. Box 9 on the Deposit Ticket should contain the Treasury Account Symbols 20X0903.

      Note:

      Effective July 15, 2013, the Trace ID number must have a "12" as the System ID. Coordinate with the Planning and Analysis BBTS Coordinator to initiate an on-line 5081 request to modify user profiles with permission to generate Trace ID numbers with System ID "12".

    3. Manual Deposit will make three photocopies of the check, two photocopies of the spreadsheet, prepare the OTCnet deposit ticket (make two photocopies), complete Form 3460 (Transmittal Memo Accounting Control Documents) and encoding tape.

    4. Manual Deposit will release Accounting package which includes the OTCnet Deposit Ticket, photocopy of the check, the spreadsheet, Form 3460 and encoding tape to RRACS. If a spreadsheet was not received from the bank, do not hold up the deposit. Indicate on the Form 3460 that a spreadsheet was not received.

    5. Manual Deposit will send photocopies of the OTCnet Deposit Ticket, check and spreadsheet to IVO (formerly AMTAP) on Form 3210. Notate on the 3210 if a spreadsheet was not received from the bank.

    6. Manual Deposit will retain photocopies of the OTCnet Deposit Ticket, check and spreadsheet in Receipt and Control according to Manual Deposit retention guidelines (One year following the current processing year)

    7. After IVO (formerly AMTAP) has completed needed research of the taxpayer information, they will forward a Form 3245 to Manual Deposit for DLN numbering and preparation of Form 813.

    8. Manual Deposit will obtain DLN from Off-Line BBTS DLN Generation, with Doc Code 45 and Blocking Series 200 – 299. Use the Julian Date of the Deposit Ticket in the DLN. Stamp the DLN on Form 3245.

    9. Manual Deposit will Prepare Form 813. Ensure the Trace ID Number from the original OTCnet Deposit Ticket has been stamped on the Form 3245 and entered on Form 813. Although the last six digits of the 20 digit Trace ID Number were not generated during the original Deposit process, the last six digits (positions 15 thru 20) of the Trace ID Number will have to be assigned to each 3245 and on the corresponding 813, to allow input of the Trace ID Number during processing of the 3245s in the ISRP System by Data Conversion.

    10. Manual Deposit will route Form 3245 and 813 to Accounting.

3.8.45.13.1.2  (11-19-2013)
ELP Electronic Processing via the Transaction Reporting System (TRS) Credit Gateway (Cincinnati and Fresno)

  1. IRS will receive these returned refunds electronically from Banks using the Transaction Reporting System (TRS). IVO (formerly AMTAP) will research all payments and prepare Form 3245 for each taxpayer they can identify. For the remaining taxpayers they cannot identify, IVO (formerly AMTAP) will prepare a Documentation Letter needed for Accounting and Manual Deposit balancing and accountability purposes. Receipt and Control Manual Deposit Function will only have responsibilities for DLN generation, numbering of Form 3245, preparation of the Form 813 and stamping of the Trace ID Number on each Form 3245.

  2. Manual Deposit will receive from Accounting a copy of the Deposit Ticket which will include the Trace ID Number using a System ID Code of (12).

  3. Manual Deposit will receive from IVO (formerly AMTAP) the following items which should be listed on Form 3210:

    1. Copy of the Deposit Ticket.

    2. Form 3245 for each taxpayer account.

    3. Listing of taxpayer information associated with the Form 3245s. An adding machine tape may be attached.

    4. IVO (formerly AMTAP) Documentation Letter with Deposit Ticket number and checklist of steps taken to identify items remaining in the 4971 Account. If the Form 3245s add up to the total of the deposit Ticket, an IVO (formerly AMTAP) Documentation Letter will not be sent by IVO (formerly AMTAP).

      Note:

      If a Deposit Ticket has a large volume, IVO (formerly AMTAP) may send only part of the Form 3245s associated with the Deposit Ticket. When that occurs the Form 3245s should be accompanied by the pages of the listing with the appropriate taxpayer information. Ensure the total of the listings balance back to the total of the 813s prepared. For the Form 3245s that are sent in smaller batches, the IVO (formerly AMTAP) Documentation Letter will be submitted with the final batch associated with the Deposit Ticket. If the Form 3245s in the smaller batches all add up to the Deposit Ticket an IVO (formerly AMTAP) Documentation Letter is not needed, and therefore will NOT be submitted with the final batch associated with the Deposit Ticket. If the documentation received does not balance or the Form 3245s do not match the listing, return the package or contact IVO (formerly AMTAP) for correction

  4. Manual Deposit instructions for processing Form 3245 are as follows:

    1. Obtain DLN from Off-Line BBTS DLN Generation, with Doc Code 45 and Blocking Series 200 – 299. Use the Julian Date of the Deposit Ticket in the DLN. Stamp the DLN on Form 3245.

      Note:

      Because of the volume that may be received and the limited number of DLNs that can be assigned through BBTS, please ensure that all blocks utilize the maximum number of 100 documents to a DLN. Each File Location Code used during Off-Line DLN Generation has 10,000 count that can be used (Blocking 200-299).

    2. Prepare Form 813. Ensure the total of the Form 813s balance back to the Deposit Ticket. Whenever an IVO (formerly AMTAP) Documentation Letter is received with the copy of the Deposit Ticket, taxpayer information listing and Form 3245s, ensure the total of the Form 813s and the total listed on the IVO (formerly AMTAP) Documentation Letter, balance back to the Deposit Ticket. If the Form 3245s are received in small batches ensure the Form 813s balance back to the associated listings received with the Form 3245s.

    3. Ensure the Trace ID Number from the TRS Deposit Ticket has been stamped on the Form 3245 and entered on the corresponding Form 813. The TRS Deposit Ticket will only show the first 14 digits of the Trace ID Number. The last six digits (positions 15 thru 20) of the Trace ID Number will have to be assigned to each Form 3245 and listed on the corresponding Form 813. When the Form 3245s are received separately in smaller batches but still associated with on Deposit Ticket, keep track of the Trace ID Numbers already assigned to ensure that the Trace ID Numbers do not duplicate.

    4. Route copy of the Deposit Ticket, Form 813s, numbered 3245 Forms, taxpayer information listings and the IVO (formerly AMTAP) Documentation Letter (if provided) to Accounting. Each Form 813, associated 3245 Forms and documentation should be placed in a separate brown folder.

    5. Use OFP Code 170-92500 to record hours and count when numbering Form 3245s, preparing Form 813s and stamping the Trace ID Number on the Form 3245s.

3.8.45.14  (11-19-2013)
Bureau of the Fiscal Service (BFS) (Formerly Bureau of Public Debt (BPD)

  1. Checks received at the Campuses for the Bureau of the Fiscal Service (BFS) (Formerly the Bureau of Public Debt (BPD)) will be processed following the procedures below.

    1. Sort BPD or BFS checks by State.

    2. Prepare adding machine tape of remittances by State.

    3. Encode checks with BPD endorsement.

    4. Total State amount(s) separately and grand total tape.

    5. Identify each State on encoder tape.

    6. Prepare Form 1963, Form 784 and OTCnet 215A Deposit Ticket.

  2. All Campuses will send information on taxpayers who contribute to the Bureau of Public Debt (it is now know as the Bureau of the Fiscal Service), specifically the name, address and amount of the check, to the following address:

    Internal Revenue Service
    333 W. Pershing Rd
    STOP 6566 P-5
    Attn: Rick Holmes
    Kansas City, MO 64108

3.8.45.15  (09-19-2014)
Foreign Check Remittances

  1. Remittances drawn on foreign banks payable in U.S. Dollars through U.S. banks should have the U.S. bank's routing symbol printed in MICR ink in the lower left corner of the check and have a nine digit routing number. Process with regular deposit. If the routing symbol is missing, process manually per IRM 3.8.45.1.10.

    Note:

    If the Bank routing symbol and the nine digit routing number are missing from the check, but the routing symbol and routing number are written on the check or provided, the MICR routing information can be printed on the check and processed with the regular deposit.

  2. All remittances drawn on foreign banks with no United States bank routing symbols payable in the foreign currency listed next to that foreign country on the Bank of America OTCnet Acceptable Foreign Check Currency Types listing in Exhibit 3.8.45-10, are considered "Cash Letter" items by Bank of America. The country and the currency type listed next to the country must match the check exactly. In addition remittances received in USD drawn on Canadian banks and select United Kingdom Clearing Banks are also considered "Cash Letter" items by Bank of America. See Exhibit 3.8.45-11 for a listing of the select United Kingdom Clearing Banks. "Cash Letter" items should receive a provisional credit from Bank of America and therefore confirmed within one week. Follow up with Bank of America must be performed if the deposit is not confirmed in OTCnet within one week. These foreign remittances will be processed using the following procedures. Command Code STAUP must be input on the taxpayer's account, see the instructions in IRM 3.8.45.10.8 for inputting the appropriate CC STAUP to delay collection activity.

    1. Prepare Form 3244 if remittance is received with a tax return as referenced in IRM 3.8.45.2.3(6).

    2. Date stamp payment posting voucher and tax return with received date if not present.

    3. Process using Manual Deposit IRM 3.8.45.25 guidelines.

    4. Number payment posting vouchers, using original IRS received date.

    5. Create a Deposit Ticket thru OTCnet. A Deposit Ticket may be created for each check or several checks may be batched together with one Deposit Ticket if they are the same currency type. Enter "Foreign Check - Cash Letter Item" in Block 6. When creating the Deposit Ticket, select "Manage Deposit" , "U.S." as the type of currency, and "Bank of America 121000358 - 1257268465" as the bank. Enter the voucher date in Block 2. Enter "DATE PRESENTED OR MAILED TO BANK" in Block 6. Refer to the OTCnet Guidelines for specific instructions.

    6. Mail the deposit thru overnight traceable method to:

      Bank of America
      TX1-160-05-31
      1950 N Stemmons Fwy
      Suite 5049
      Dallas, TX 75207

  3. All remittances that are payable in foreign funds and drawn on foreign banks are considered "Collection" items by Bank of America if they are not listed in the Bank of America OTCnet Acceptable Foreign Check Currency Types listing in Exhibit 3.8.45-10. In addition remittances received in USD drawn on foreign banks other than Canada and select United Kingdom Clearing Banks are considered "Collection" items by Bank of America. See Exhibit 3.8.45-11 for a listing of the select United Kingdom Clearing Banks. "Collection" items do not receive a provisional credit and will not be confirmed in OTCnet until funds have been collected from the taxpayer's bank. This process may take from 6 to 8 weeks. Follow up with Bank of America must be performed on these "Collection" items if the deposit is not confirmed in OTCnet within six weeks."Collection" items will be processed using the following procedures. Command Code STAUP must be input on the taxpayer's account, see the instructions in IRM 3.8.45.10.8 for inputting the appropriate CC STAUP to delay collection activity.

    1. Prepare Form 3244 if remittance is received with a tax return as referenced in IRM 3.8.45.2.3(6).

    2. Date stamp payment posting voucher and tax return with received date if not present.

    3. Process using Manual Deposit IRM 3.8.45.25 guidelines.

    4. Number payment posting vouchers, using original IRS received date.

    5. Create a separate Deposit Ticket thru OTCnet for each check. When creating the Deposit Ticket, select "Manage Deposit" , "Foreign Currency Check" as the type of currency, and "Bank of America 121000358 - 1257268465" as the bank. Enter the voucher date in Block 2. Leave the money amount field blank. Enter "Foreign Check - Collection Item" in Block 6. Please refer to the OTCnet Guidelines for specific instructions.

      Note:

      With the decommissioning of the Ca$hlink System, a paper Form SF215A can no longer be used for depositing foreign checks when unable to determine the type of currency. The deposit must be input on OTCnet. If you are unable to determine the type of currency, or if you are able to determine the currency type but it is not an option in OTCnet, contact Karen Dolores, Bank of America Customer Service at 888-715-1000 Ext. 21600 for help with making the best determination. Include remarks in OTCnet Block 6 that Bank of America was contacted to help determine the currency type.

    6. Mail the deposits to:

      Bank of America
      TX-160-05-31
      1950 N Stemmons Fwy
      Suite 5049
      Dallas, TX 75207

    7. If you have any questions or concerns about entering a foreign check in OTCnet, please contact the Treasury OTC Support Center at 866-945-7920 or via email at FMS.OTCChannel@citi.com.

  4. The Trace ID number for remittances drawn on foreign banks will be manually generated from BBTS, using the Offline Trace ID Generation window in the Manual Deposit screen, for input to OTCnet. After the bank has performed the cash conversion and the payment posting voucher information is input to BBTS, another Trace ID number will be automatically generated. Line through this 14 digit number with a thin line marker on the Form 813 /Form 813A and replace it with the original Offline Trace ID number that was input to OTCnet. The six digit sequence number of the entire 20 digit Trace ID Number on the payment posting vouchers and Form 813/Form 813A will not need to change.

    Note:

    Campuses may choose to use an electronic version of Form 813/Form 813A instead of generating from BBTS. Coordination with Accounting will be needed to ensure the Form 813 is routed to Data Conversion for processing to establish the DLN on the Service Center Control File (SCCF).

  5. Hold a photocopy of the check (front only), copy of the OTCnet 215A Deposit Ticket and the payment posting voucher, in a suspense file until the deposit is confirmed by the bank. Monitor OTCnet to determine when the deposit is confirmed. The confirmed Deposit Ticket will show the actual date of deposit to the bank and the money conversion amount. When confirmed, make a print of the Deposit Ticket from OTCnet. Make a pen and ink change to Block 2 of the Deposit Ticket to change the voucher date to the confirmation date. Immediately forward a copy of the corrected Deposit Ticket to RRACS as part of the Accounting Package. The following items must remain or be added to the Suspense File for retention:

    1. File copy of Form 813A and Form 813

    2. Part 3 of Form 784

    3. Agency copy of OTCnet 215A Deposit Ticket

    4. Photocopy front of check

    5. Payment Posting Voucher or document used in lieu of Payment Posting Voucher (photocopy of first page of return, IDRS print, etc.)

    6. Copy of IDRS STAUP screen printout, or STAUP Error Message received if account is not in balance due status.

    Note:

    Retain Suspense File package in a locked cabinet for three years following the current processing year.

  6. A log or database must be maintained for all foreign remittances deposited with Bank of America. The log or database should contain the following information:

    1. Deposit Ticket Number

    2. Deposit Amount

    3. Original IRS Received Date

    4. Date received at the campus if received from another IRS Office. Coordinate with the Receipt and Control area responsible for routing to the Foreign Deposit Desk any Foreign Remits received from other IRS Offices or Lockbox Banks, to ensure the official Submission Processing campus received date stamp is used to stamp on campus received date on documentation. Circle out the Submission Processing campus received date in red to ensure the original IRS Received Date is used for processing the payment.

    5. Deposit Date

    6. Confirmed Date

    7. Date and explanation of any follow up action with Bank of America

      Note:

      If the confirmed OTCnet Deposit Ticket, has not been received within one (1) week from the date in box 2 for "Cash Letter" items or six (6) weeks for "Collection" items, contact Karen Dolores, Bank of America Customer Service at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . or via email contact, to inquire on the status. Keep a record of all follow up calls/emails and actions taken. Contact RRACS and inform them of the status of the deposit ticket. Contact Headquarters Analyst ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if confirmation has not been received within 30 days for "Cash Letter" items, or 60 days for "Collection" items.

    The log or information in the database should be maintained for three years following the current processing year.

  7. If no source document is received and research cannot determine taxpayer posting information, refer to unidentified remittances in IRM 3.8.45.10.3.

3.8.45.15.1  (01-28-2013)
Foreign Currency Remittances

  1. When foreign currency is received in the mail it must be converted to U.S. dollars.

    Note:

    These procedures are for foreign currency only, not coins, which are considered of too insignificant in value to convert and ship back to the issuing country.

  2. Only one type of foreign currency may be included in the same deposit ticket.

  3. To determine the conversion rate, log on to OTCnet, select the type of foreign currency that is being converted, and input the currency amount. An U. S. Equivalent (USE) will be quoted. The USE is the amount input as the OTCnet voucher amount.

    1. When creating the Deposit Ticket in OTCnet, be sure to select Foreign Currency Cash and Bank of America 121000358 - 1233442049 as the bank.

    2. Refer to the OTCnet guidelines for specific instructions.

  4. If the USE is $5,000 U.S. dollars or less, send the currency thru "Certified" mail to the following address:

    Bank of America NA
    Mailcode: CA9-708-L3-13
    P.O. Box 54529
    Los Angeles, CA 90054-0529

  5. If the USE is greater than $5000, call the Toronto trading desk at 800-387-1012, who will make arrangements for a Brinks pickup of the currency, for delivery to:

    Bank of America NA
    Mailcode: CA9-708-L3-13
    1200 West 7th Street, Level 3
    Los Angeles, CA 90017–2349

  6. When the funds are received in Los Angeles, the Banks Foreign Currency Services (FCS) Department will credit the funds to the OTCnet bank account. The banks Concord team will confirm the OTCnet voucher the morning after the credit posts to the OTCnet account.

  7. Process the Form 3244 and document using manual deposit guidelines.

    1. Date stamp.

    2. Number source documents using original received date.

  8. If no source document is received, refer to Unidentified Remittances procedures in IRM 3.8.45.10.3.

3.8.45.15.2  (09-19-2014)
Unprocessable Foreign Checks

  1. Foreign checks that cannot be processed by Bank of America for various reasons will be returned to the Campuses. Bank of America will use a form letter to return these payments and will place a check mark or "X" beside the reason why the check(s) could not be processed. The OTCnet remarks section will also show the reason the check was rejected. A debit voucher will not accompany these checks.

    Note:

    If the unprocessable condition can be identified by the campus prior to deposit, the following steps may also be followed to resolve the unprocessable condition before being sent to Bank of America.

  2. If the check was returned for the following reasons, use Letter 2689C or Letter 4480C to return the check to the taxpayer and request a replacement check:

    1. Post dated checks.

    2. Stale dated checks (checks more than 6 Months old are considered stale dated by Bank of America).

    3. Checks that are not signed.

    4. Checks where the currency amount has been altered.

    5. Checks on which the words and numerical amount on the check differs.

    6. Checks where it is not clear what Country the drawee bank is located.

    7. Checks previously dishonored or so marked on their face.

    8. Traveler's checks.

  3. If the check was returned because the check is not dated, enter the original received date on the check and redeposit it.

  4. If the check was returned for the following reasons, correct the error or problem, prepare a new deposit ticket and redeposit the payment.

    1. Foreign and U.S. currencies cannot be on the same deposit ticket.

    2. The amount of check(s) received differs from the amount listed on the deposit ticket.

    3. An invalid agency location code is shown on the deposit ticket.

    4. If a check is received back with the remarks "A. Amount is less than minimum - fees will likely exceed USD value of the check" and an explanation of ."A. MINIMUM ACCEPTABLE AMOUNT SHOULD BE $200.00/USD OR IT'S EQUIVALENT", redeposit the check. If it comes back a second time, contact your HQ Analyst to discuss course of action.

  5. A Rejected Foreign Check case file of all Rejected Items received back from Bank of America must be maintained and contain the following:

    1. Copy of the printed OTCnet Rejected Voucher.

    2. Copy of the rejected check (front & back).

    3. The Form Letter or OTCnet Rejected printout received from Bank of America listing the reason the check was rejected.

    4. Documentation showing IRS action. (Re-deposited or returned to taxpayer). This can be noted on the Form Letter.

    5. Copy of new Deposit Ticket if re-deposited.

    6. The Rejected Foreign Case File and Log should be maintained for three (3) years following the current processing year.

  6. A Rejected Foreign Check log with a record of all Rejected Items received back from Bank of America must be maintained and include the following:

    1. Original Deposit Ticket Number.

    2. Original Deposit Date.

    3. Rejected Date.

    4. Bank of America reason for rejecting.

    5. Action taken (Re-deposited or returned to taxpayer) with brief explanation of corrective action or why the check was returned to taxpayer.

    6. Re-deposit Date or Date the check with a letter was returned to the taxpayer.

    7. Deposit Ticket Number of Re-deposit.

    8. Confirmed Date if Re-deposited.

    9. Follow up action with Bank of America of unconfirmed re-deposits.

  7. The Rejected Foreign Case File and Log should be maintained for three (3) years following the current processing year.

  8. A monthly printout of Rejected Items must be pulled from OTCnet to verify all rejected items are being documented in the Rejected Foreign Check case file and log. Instructions for pulling the OTCnet Rejected Items are as follows:

    1. In the OTCnet main Online Application page select the “Deposit Processing” tab, then select “Search Deposits”

    2. The “Search Conditions” option in the “Search Deposit” Screen should be entered as follows:

      Search Conditions Action
      OTC Endpoint Enter the appropriate Campus
      Deposit Status The “Rejected” option should be selected in the drop down menu
      Deposit Type The “Foreign Currency Check” option should be selected in the drop down menu
      Voucher Date From Enter the first day of the month
      Voucher Date To Enter the last day of the month
      In the “DDA” box of the Financial Institution Section Enter the DDA Number of Bank Of America
    3. Select “Search” at the bottom of the screen. Print the screen showing the listing of rejected Items and verify that all rejected items are listed in the log and a file is accounted for.

    4. Select the Voucher Number for each of the rejected items and print out each voucher to keep with the documentation file for each rejected Item.

  9. If a Debit Voucher is received from the bank, make a copy and immediately route to the local Accounting function.

3.8.45.15.3  (04-29-2013)
Offshore Voluntary Disclosure Program (OVDP) Foreign Checks

  1. If a foreign check drawn on a foreign bank is received with an original Offshore Voluntary Disclosure Program (OVDP) package at the Austin Submission Processing Center, see instructions in IRM 3.8.45.30.7.

3.8.45.16  (01-01-2011)
IRC 7804(c) Letter

  1. When a notice, letter, or correspondence referring to IRC 7804(c), demand for repayment of IRS embezzlement is received, process as NMF.

    1. Process IRC 7804(c) letter as NMF.

    2. TC 670 with TC 570.

    3. MFT 20.

    4. Prepare Form 813 and DT with Account Symbol 20-0110.

    5. Route the document to Accounting Operations.

  2. If payment is received without IRC 7804(c) letter, use letter as source document and process as IRC 7804(c) letter through Manual Deposit as NMF.

3.8.45.17  (01-16-2013)
IRS Refund Repayments

  1. All processing of Refund Repayments will be done as Manual Deposit.

  2. If remittance, tax return or document indicate the payment is for the erroneous portion of a refund that the taxpayer believes is too large an amount, or any credit the taxpayer feels they are not entitled to, process using the following procedures for Form 3245. These payments may be either Master File or Non-Master File. Sort work accordingly.

    Note:

    Whenever a taxpayer repays a refund they feel they are not entitled to and correspondence indicates that ID theft may be involved, or if an IVO (formerly AMTAP) issued letter (i.e., Letter 4115-C or Letter 4464-C) is attached, route the check and correspondence to the following address on Form 3210:

    Internal Revenue Service
    Attn: IVO Management
    PO Box 24012
    Fresno, CA 93779

  3. Form 3245, Refund Cancellation of Repayment, should be processed through Manual Deposit using Account Symbol 20X0903.

  4. Repayment to Refund Appropriations are received from taxpayers repaying refunds with Letter 510C, Form 4728 or related correspondence.

    1. Attach letter to Form 3245 or to an IDRS print.

    2. If the payment exceeds the amount over paid, prepare a Form 3244, using TC 670 and TC 570 for the difference with Account Symbol 20-0110.

    3. Input deposit data should be processed using Manual Deposit and using Account Symbol 20X0903 for refunding Internal Revenue Collections and Account Symbol 20X0904 for refunding Internal Revenue Collection Interest.

  5. Refund Repayments are remittances received from taxpayers repaying a refund.

    1. For Master File use: TC 720, Blocking Series 200-299.

    2. For Non-Master File use: TC 720, Blocking Series 800-899.

    3. Document Code 45.

  6. Forward any taxpayer correspondence (Letter 510C, Form 4728 or related correspondence) with a photocopy of front and back of check to appropriate issuing unit.

  7. Prepare and forward to Accounting Operations, Form 1963, Form 813, Form 784 and the OTCnet 215A, Deposit Ticket.

3.8.45.18  (01-01-2011)
Repayment of Informant Reward-OSPC Only

  1. A remittance received from a taxpayer indicating it is a repayment of an informant reward.

    1. Prepare Form 1963 , Collection Register, and OTCnet SF 215A, Deposit Ticket. Annotate Account Symbol 20X5433 on both forms. Use Column (g) of Form 1963 to annotate Treasury Account Number.

    2. Annotate the original case number on the documentation.

    3. Forward the Deposit Ticket and supporting documentation to RACS for appropriate journal action.

    4. If a Repayment of Informant Reward is received at an SPC other than Ogden, follow Out of Area Master File Returns/Documents with payments transfer procedures in IRM 3.8.45.5.3.


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