3.8.47  Manual Deposit for Field Office Payment Processing

Manual Transmittal

September 10, 2013

Purpose

(1) This transmits revised IRM 3.8.47 Manual Deposit Process for Field Office Payment Processing.

Material Changes

(1) The Field Office Payment Processing program prescribes internal controls and procedures required for field office collected remittances, and receipts received in campuses for processing. Functional remittance policy is included.

(2) Editorial changes have been made throughout the IRM for clarity. Throughout the IRM, the 809 Database procedures have been changed to E-Trak 809 Database System.. Personnel names, references and site links have been updated. Other changes are as follows:

Subsection Changed Description of Change
Related Resources Inserted IRM 10.8.34.3.1.3 Front/First Line Manager (manager responsibility for IDRS security.
IRM 3.8.47.5.2.4(2) Deleted requirement for Cincinnati and Ogden Submission Processing Centers to provide monthly reports in Excel to HQ Collection analyst.
IRM 3.8.47.5.2.4(6) Revised procedures for handling late remittance errors.
IRM 3.8.47.5.7 Revised procedures for supplemental Forms 795A.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.6.5 Revised procedures for receiving and verifying blank Forms 809 with implementation of E-Trak 809 Database System, and to clarify that Submission Processing employees that verify blank Forms 809 must have RSTRK with Definer R on their IDRS profiles.
IRM 3.8.47.6.5 Inserted guidance for Field Office Payment Processing managers on receiving Form 809 book inventory and revised remittance perfection technicians procedures.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.6.6 Revised Control Inventory of Form 809 Books to add dates for inventory verification.
IRM 3.8.47.6.6 Revised to state transference of unissued Form 809 inventory is allowed only when approved by Operations Managers, Receipt and Control Operations, for each site by serial number.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.6.8 Revised Who May Be Issued a Form 809 Receipt for Payment of Taxes Book to state employees that verify or reconcile blank Form 809 may not be issued a Form 809 book.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.6.14 Revised to state District Office term is obsolete.
IRM 3.8.47.6.15 Revised procedures for Quarterly Form 809 Inventory Verification.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.6.17 Revised due dates for Form 809 annual reconciliation for 2013 and 2014 and revised symbols for HQ Accounting and Deposit.
IRM 3.8.47.6.24 Revised procedures to include Smart Safes at TACs and procedures for handling Forms 2424 Account Adjustment Vouchers.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.6.25 Revised procedures for Form 809 review for Campus Support (Ogden Submission Processing Center).
IRM 3.8.47.7.3 Inserted new requirement to document the Cyber Incident number and date in the comments section of Form 5919 if a loss or shortage is discovered during the Form 5919 process. Provide a copy to the remittance security coordinator.
IPU 13U0552 issued 03-21-2013 IRM 3.8.47.7.2 Inserted Form 5919 Teller Error Advice requirement for teller comments to provide specific information requested from group manager and to provide the name and specific address of the Submission Processing Center.
IRM 3.8.47.10.1 Deleted requirement to send quarterly report of error trends to the Headquarters Field Office Payment Processing analyst.
IPU 13U0726 issued 4-12-2013 IRM 3.8.47.10(2) Inserted monthly report of Form 809 on-hand inventory requirements.
Definition of Terms (Used in Field Office Payment Processing) Inserted definition of gross error.
Revised definition of unidentifiable remittances to insert that unidentifiable remittances received in mail rooms are processed through RS-PCC in co-located TACs.

Effect on Other Documents

IRM 3.8.47 Manual Deposit for Field Office Payment Processing, dated effective October 1, 2012 is superseded. The following IRM Procedural Updates (IPUs), have been incorporated into this IRM: 13U0552, 13U0726.

Audience

This IRM prescribes procedures for all Submission Processing campuses Field Office Payment Processing program, functional remittance policy, and Form 809 processing.

Effective Date

(10-01-2013)

Related Resources

IRM 3.8.45 Manual Deposit Process provides guidance for processing specific kinds of payments, security requirements for restricted remittance processing areas, researching payment application. IRM 3.8.44 Campus Deposit Activity, provides guidance for campuses processing payments using Integrated Submission Remittance Processing System (ISRP) and includes requirements to date stamp. IRM 3.17.278 Paper Check Conversion (PCC) System, provides guidance for offices processing payments using Remittance Strategy-Paper Check Conversion (RS-PCC).

Submission Processing site: Submission Processing http://win.web.irs.gov/SP

Field Office Payment Processing site: http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm

Questions from employees outside Submission Processing should be directed to their Headquarters analyst for remittances. These key contacts for functional areas are listed on the Field Office Payment Processing site.

IRM 3.0.167, Losses and Shortages

Document 6209, IRS Processing Codes and Information

All employees and managers handling remittances must be familiar with the following IRMs to ensure accuracy, timely deposits, security within the restricted area, protection of Personally Identifiable Information (PII) and adherence to internal controls:

  1. IRM 10.2.14 Methods of Providing Protection

  2. IRM 10.2.11 Basic Security Concepts

  3. IRM 10.2.15 Minimum Protection Standards (MPS)

  4. IRM 10.2.8 Incident Reporting

  5. IRM 3.30.123 Work Planning and Control – Processing Timeliness: Cycles, Criteria, and Critical Dates

  6. IRM 10.8.34 Information Technology (IT) Security – Integrated Data Retrieval System (IDRS) Security Handbook

  7. IRM 10.5.4.3 Privacy, Information Protection & Data Security (PIPDS) - Incident Management Program

Managers of all remittance processing operations, including the Field Office Payment Processing Program must adhere to all requirements stated in:

  1. IRM 10.4.1 Managers Security Handbook

  2. IRM 10.2.15 Minimum Protection Standards (MPS)

  3. IRM 10.2.8 Emergency Planning and Incident Reporting

  4. IRM 10.2.13 Information Protection

  5. IRM 10.8.34.3.1.3 Front/First Line Manager (First line managers' responsibilities for IDRS security)

Field Office Payment Processing begins with the collecting field office employee. Other IRMs prescribe specific remittance procedures in field office functions.

  1. Wage and Investment (W& I) Field Assistance, the reference is IRM 21.3.4 Field Assistance. This manual also includes Taxpayer Assistance Center (TAC) procedures for local cash depositing and couriers.

  2. Small Business /Self-Employed (SB/SE) Collection, the reference is IRM 5.1.2 Remittances, Form 809 and Designated Payments. IRM 5.1.2 is the lead IRM for Form 809, Receipt for Payment of Taxes, by the business owner, Collection Policy. Refer to IRM Exhibit 5.2.1-1, Form 809 Instructions.

  3. Examination, the reference is IRM 4.4.24 AIMS Procedures and Processing Instructions--Payments and Remittances.

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.8.47.1  (10-01-2013)
FIELD OFFICE PAYMENT PROCESSING PROGRAM OVERVIEW

  1. Purpose. The Field Office Payment Processing Program in Submission Processing is processing paper remittances received in field offices and issuance, tracking, and processing of Form 809 Receipt for Payment of Taxes. Form 809 processing includes field offices and campuses. Internal Revenue Service requires strict control of official receipts, taxpayer information and remittances to ensure the highest integrity and public trust. Refer to IRM 3.17.278 Paper Check Conversion (PCC) System for electronic payment processing procedures.

  2. Accountability. Internal Revenue Code (IRC) §7804(c) imposes liability against any officer or employee of the Internal Revenue Service or Treasury Department who fails to account for and pay over any amount of money or property collected or received by him/her in connection with the Internal Revenue Laws. The statute does not require intentional misconduct, such as willfulness, on the part of the employee.

  3. Field Office Functions. Functional areas receiving field office collected payments are: Small Business/Self-Employed (SB/SE) Collection, Wage and Investment Field Assistance Taxpayer Assistance Centers (TACs), SB/SE Examination, Large Business and International (LB&I), Appeals, Tax Exempt and Government Entities (TE/GE), Taxpayer Advocate, and Chief Counsel.

  4. Duties. Field Office Payment Processing Program Duties in campuses include:

    • Verification, review, and timeliness recordation of Form 795 and Form 795A Daily Report of Collection Activity and Form 3210 Document Transmittal receipts, and any other official remittance transmittal and items

    • Form 809 Receipt for Payment of Taxes internal controls: inventory, issuance, tracking, destruction, error identification, and provide records for the annual reconciliation and general administration

    • Identification and reporting critical errors and issuance of Form 5919 Teller's Error Advice using the E-Trak 809 Database System

    • Examination and resolution of posting document errors through the Form 5919 process.

      Note:

      Field office employees complete posting vouchers and establish taxpayer intent. These payments are considered perfect.

    • Timely and accurate payment processing and deposits

    • Generation and distribution of error trend and timeliness reports.

3.8.47.2  (10-01-2013)
Remittance Policy

  1. REMITTANCE POLICY. The IRS mission is to provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. This section outlines functional remittance policy that is the general framework for procedures.

  2. Public Trust and Integrity. The public can trust that IRS remittance processing operations are timely, accurate and conducted with the highest integrity. Functional remittance policy is in accordance with law governing money and finance and standards for internal control in the federal government.

  3. 24-Hour Deposit Standard. The Service is committed to a 24–hour deposit standard for tax payments collected. The standard is for the remittances collected in field offices to be processed on the day or receipt or by the next business day.
    For payments processed through the Remittance Strategy - Paper Check Conversion (RS-PCC) system, the 24-hour deposit standard is met by scanning the paper check and submitting it for deposit no later than the first business day after the date of receipt of the check.
    At campuses that process mailed receipts, all remittances of $100,000 or more must be deposited on the day of extraction. If the remittance is extracted after the daily cut-off time for processing the daily deposit, the remittance must be deposited with the next scheduled deposit that will be delivered to the depository.

    1. Process payments timely where received.
      Taxpayer Assistance Centers (TACs) with Remittance Strategy-Paper Check Conversion (RS-PCC) or Paper Check Conversion must process collected checks locally through RS-PCC unless an official receipt is requested by the taxpayer. Form 809 is the only official receipt. Refer to IRM 3.17.278 Paper Check Conversion (PCC) System Checks that CAN and CANNOT be Processed Through Paper Check Conversion. IRM 3.17.278 Paper Check Conversion (PCC) System Checks that CAN and CANNOT be Processed Through Paper Check Conversion.
      Campus Support sites must process all checks locally through RS-PCC, even converted cash payments. All Campus Support sites are aligned to Ogden Submission Processing Center.
      Transship payments requiring research to aligned Submission Processing Centers for processing.

    2. Plan for high volume peak periods. During high volume peak periods, management establishes program completion guidelines, prioritizes remittance processing and monitors the flow of receipts to ensure taxes collected are accurately credited to the United States Treasury and taxpayer as soon as practical.

    3. Plan for contingencies. If deposits cannot be done locally timely due to technical problems, then transship payments to the aligned Submission Processing Center as directed by Headquarters. Do not transship franked checks (checks that have been scanned for electronic presentment.) Transship latest received dates and monitor earliest received dates to ensure taxpayers are not impacted.

    4. Cash payments. All legal tender (cash) is acceptable for payment of taxes. Cash is handled with care and precision. All cash collected must be converted to a cashier's check or money order and sent for processing unless official couriers to TGA banks are provided through Headquarters Submission Processing (for campuses) or Field Assistance management (for TACs) in partnership with the Financial Management Service (FMS). Do not send cash in the mail. If local courier deposits are in place, cash must be turned over daily for recording and securing in the safe until the next business day's deposit.
      Every customer who makes a cash payment by mail or in person must be issued Form(s) 809 Receipt for Payment of Taxes for the exact amount(s) collected and reflecting the account where the payment will be credited. In person, count all cash back to ensure accuracy.

      Note:

      Submission Processing Centers do not accept tax payments in person. Taxpayer Assistance Centers accept tax payments, but do not accept cash at every location.

      Note:

      Do not send cash in the mail.

      Note:

      Minor coins (pennies and nickels) are not required to be accepted in person for payments over $.25.

  4. Receipts for Payment of Taxes. Every cash paying taxpayer will be issued an official completed receipt for their tax payment. Taxpayers will be issued Form 809 Receipt for Payment of Taxes for other types of payment upon request. Form 809 is the only official receipt for payment of taxes.

  5. Accuracy. Handle taxpayer remittances accurately. Precision is required. . Exact money amounts must be accurately recorded and credited to the correct tax account.
    Record all transactions in systems and on paper documents accurately. Exact money amounts must be credited to correct tax accounts accurately.
    Maintain the integrity of the IRS received date. Credit accounts for the earliest date the funds are received at the IRS or Department of Treasury office or by an IRS field official. IRM 3.8.44 Refer to Exhibit 3.8.44–1.

  6. Accountability. Custodians of government funds are accountable. If necessary to transfer funds to another IRS employee for processing, an audit trail must be established to ensure clear accountability. Refer to IRM 3.0.167, Losses and Shortages for more information.

  7. Remittance Security. Secure remittances and protect taxpayer information in all remittance operations. Ensure:

    1. Taxpayer information collected to credit customer accounts accurately is protected. IRM 10.2.13 Information Protection and IRM 10.5.1 Privacy, Information Protection and Data Security Policy and Guidance.

    2. Remittances are physically secured. Maintain a secure environment. IRM 10.2.15 Minimum Protection Standards (MPS).

    3. Key duties of remittance processing and reviewing or changing tax accounts are divided or segregated among different people to reduce the risk of error or fraud or embezzlement.

    4. Payment processing expanded to local offices and remittances will be processed locally when possible. lf necessary to transship remittances, then the receiving office must acknowledge receipt and the originator must follow up with destination office timely.

    5. Reviews are conducted and documented by local management and Headquarters.

    6. Segregation of key duties is maintained. Employees that issue, verify, or reconcile blank Form 809 Receipt for Payment of Taxes must have RSTRK with Definer R activated. Remittance processors may not have sensitive command codes, except as necessary to perform their assigned duties.

3.8.47.3  (10-01-2013)
Cash Management Responsibilities

  1. The Service is committed to ensuring a 24-hour deposit standard that applies to all remittances collected. Strive to deposit all remittances accurately and within 24 hours. Management at all levels must monitor the flow of receipts to ensure that this objective is achieved.
    Large dollars ($100,000 or more) must be deposited on the day of extraction. If the remittance is extracted after the daily cut-off time for processing the daily deposit, the remittance must be deposited with the next scheduled deposit that will be delivered to the depository.
    Large dollars ($100,000 or more) received in field offices must be sent on the day of receipt, or processed on RS-PCC on the day of receipt.

    The 24-hour deposit standard also requires depositing TACs to deposit cash (revenue receipts) within 24 hours. If a collected remittance has to be forwarded to the campus for processing, it must be forwarded on the day of receipt or by the next business day.
    For RS-PCC processing, the 24-hour deposit standard is met by scanning the paper check and submitting it for deposit no later than the first business day after the date of receipt of the check.

  2. Large Dollar Notification Required. Submission Processing Centers (SPCs) have specific E-mail boxes for field offices to send notification that large dollars are being sent for processing. The large dollar notification mailbox is also for notifying Submission Processing Centers if emergency transshipment to their campus is required. The package tracker number will be provided on the E-mail. Local management must ensure the E-mail box is checked daily and large dollars are processed on the day of receipt.

    If a message is sent to the large dollar notification E-mail box that cannot be read for any reason, contact the originator by telephone or E-mail for the information.
    If the SPC is notified via E-mail that a large dollar package is en route and the package is not received as expected, follow up with the originator to facilitate a tracer as necessary. For example, if a field office provides an E-mail on Monday stating a $1 million remittance package #123456–789 is being sent overnight, and the package is not received on the next day, contact the originator.
    At the direction of local management, the campus may trace the provider's web site before contacting the originator.
    Inform the Office of Postal Policy of overnight provider delays. Local coordinators are listed on the Postal Policy site: http://awss.web.irs.gov/Facilities/Logistics_Services/Mail/TPOC_Listing.xls

    Submission Processing Campus Large Dollar Notification Email Address
    (on the Global Directory)
    Austin *CTR AUS Field Office Teller Team
    Cincinnati *W& I CAS:SP:CN:RC
    Fresno & W I-SP-Fres R&C Field Office Teller Team
    Kansas City *CTR KC field office teller team
    Ogden & CTR ODN ogden tellers

  3. Field office employees research all payments they collect before sending to the campus. Taxpayer intent for application of the remittance is established by the payment posting voucher completed by the field office employee. These payments are considered perfect. If a completed payment posting voucher is not included, then research is required at the campus.

  4. Occasionally, field offices receive unsolicited payments in the mail that require research. These payments will be transshipped to the aligned Submission Processing campus on the day of receipt or by the next business day, researched and deposited as soon as practical. Refer to IRM 3.8.47.15.

3.8.47.3.1  (10-01-2013)
Integrity of the IRS Received Date

  1. Maintain the integrity of the IRS Received Date. Maintaining the integrity of the IRS received date is a Service wide requirement. It is paramount to ensure fair and equitable tax administration. Credit all payments for the earliest date a payment is received by the Internal Revenue Service or the Department of the Treasury. Refer to IRM Exhibit 3.8.44–2 Date Stamp Requirements for information on date stamping requirements.

  2. Control Source Documents and Remittances Locally. Each campus and field office with local processing establishes local procedures for controlling source documents and remittances throughout payment processing. Keep source documents in searchable order until the correction and balancing processes are complete. Coordinate locally as necessary with Quality for reviews to ensure accuracy of work. Refer to IRM 3.8.44.

3.8.47.4  (10-01-2013)
Security Responsibilities (in Campuses Field Office Payment Processing)

  1. Field Office Payment Processing in campuses is performed in the secure remittance processing area of Receipt and Control. All physical security requirements for the secure remittance processing area must be strictly adhered to in accordance with other manuals. All employees and managers of the Internal Revenue Service and Treasury are accountable for remittances under their control, including physical security.

    Field office managers must ensure adherence to all security standards and internal controls in all remittance processing, physical security, remittance security and IDRS security manuals:

    1. IRM 10.2.11, Basic Security Concepts

    2. IRM 3.8.45, Manual Deposit Process

    3. IRM 10.5.1, Privacy, Information Protection & Data Security Policy and Guidance

    4. IRM 10.8.34, Integrated Data Retrieval System (IDRS) Security Handbook, IRM 10.8.34.3.1.3 (10-14-2011) Front/First Line Manager states first line managers are responsible for day-today implementation and administration of IDRS security in their unit/group and shall review IORS reports weekly and monthly.

  2. In addition, any interim guidance or procedure regarding physical or remittance security must be implemented immediately. Interim guidance or procedures may be issued through memorandum or on the Servicewide Electronic Research Program (SERP) to the Submission Processing portal for Receipt and Control.

3.8.47.4.1  (10-01-2013)
Physical and Remittance Security Responsibilities

  1. Adequate security equipment and facilities must be provided to safeguard money, securities, etc., handled in the Field Office Payment Processing Function. All requirements listed in IRM 3.8.45 Manual Deposit Process must be strictly adhered to and are not repeated in this manual.

  2. All employees should report any employee or manager suspected of embezzlement, fraud or identity theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 800-366-4484 immediately. If reporting potential losses to TIGTA, then you must also inform the campus Remittance Security Coordinator.

  3. All Service employees must take care to protect personally identifiable information (PII). IRM 10.5.1 Privacy, Information Protection and Data Security - Policy and Guidance provides this guidance. Any loss of PII could result in information being compromised to perpetuate identity theft. PII information must be encrypted on computers and E-mail. Sanitize taxpayer PII unless there is a business reason. Use secure messaging.
    If you suspect or know of a potential information loss, report it to your manager, the TIGTA Office of Investigations at 800–366–4484, and the Situation Awareness Management Center (SAMC) at 866–216–4809.

  4. Cincinnati and Ogden campuses must issue Form 809 Receipt for Payment of Taxes books with obscured TIN spaces on Form 809 Part-4 to Collection Field function. Refer to IRM 5.1.2 Remittances, Form 809 and Designated Payments.

  5. Austin, Fresno and Kansas City campuses may continue to issue Form 809 without obscured TIN spaces to TAC employees in Field Assistance and Submission Processing functions that do not carry the Form 809 from place to place routinely.

  6. Blank Form 809 must be locked in a safe or high level security container, such as the Fireking cabinets and stored in the restricted area of Receipt and Control.

3.8.47.4.2  (10-01-2013)
Security of Information and Systems

  1. Use IRS computer equipment and systems according to security rules, including the local . Mandatory briefings are conducted annually regarding these requirements.

  2. Protect personally identifiable information (PII) when faxing, mailing, handling hardcopy or emailing documents. Sanitize documents when possible. If you suspect or know of a potential information loss, report it to your manager, the TIGTA Office of Investigations at 800–366–4484, and Situation Awareness Management Center (SAMC) at 866–216–4809.

  3. Always use secure messaging for sending supporting documentation for teller error advice notices and management reports. Send supporting documentation to managers of record or official designees only.

3.8.47.4.3  (10-01-2013)
Securing Remittances for Transit

  1. Internal Controls and Security. Internal control of tax receipts and personally identifiable information (PII) to ensure security during transit is required. On very rare occasions, Submission Processing Centers transship remittances via common carrier for processing. Rare cannot be overemphasized! Nearly always, tax receipts must not leave the restricted area; rather Submission Processing Centers' standard is to process tax receipts on the day of receipt. An example is a foreign remittance that must be sent to a bank for processing.
    Send all tax receipts overnight traceable method and take the following actions:

    1. Use Form 3210, Document Transmittal, and list the package contents and indicate the dollar amount of each check. Form 3210 is a four part form. Send 2 copies with the remittance. Request the acknowledgment copy be returned as proof of delivery of each item. Retain a copy as directed by local management. Form 3210 can be found at the following link. http://core.publish.no.irs.gov/forms/internal/pdf/22150g90.pdf

    2. Annotate your name or the name of the sender (originator), return address (with stop number), and telephone number on the transmittal.

    3. Annotate the kind of remittance and the official IRS received date. For example, "FOREIGN REMITTANCE(S) RECEIVED mm/dd/yyyy", in the remarks section of Form 3210. Include the original and acknowledgement copy with the remittance package. Request the acknowledgment copy be returned as proof of delivery of each item.

    4. If the remittance received is cash, which is rare, convert the cash to a cashier’s check (or money order) made payable to the United States Treasury before mailing. The local employee credit union will generally perform this service.

    5. Double wrap all remittances in opaque envelopes or boxes and affix a completed address label to both the inside and to the outside envelope or package. Use shipping material appropriate for the weight of the package.

    6. The originator or sender, who is accountable until the funds are received at the destination, must establish a control to ensure delivery of tax receipts and follow up within 10 days. The control must include amounts of taxpayer receipts by Taxpayer Identification Number (TIN) correlated to the package tracer information. For example, if the transit provider informs IRS that package number 12345-67-89 was destroyed, a control is needed that enables proper identification of impacted taxpayer(s) so that relief can be granted.

    7. The sender or originator must follow-up within 2 business days to ensure delivery of the remittance package. Access the carrier's web site, .e.g., ups.com, or usps.com and trace the package. Follow up with the destination contact within 10 working days if the acknowledgement copy is not received. The acknowledgement copy must indicate all remittances and items listed were received.

    8. Senders must report immediately report all lost remittance packages to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 800–366–4484. Lost or stolen remittances must also be reported to the destination campus Remittance Security Coordinator. Lost personally identifiable information must also be reported to the Situation Awareness Management Center (SAMC) at 866–216–4809.

    9. If you are aware of any loss, theft, or improper disclosure of sensitive or personally identifiable information (PII), then you must also report the incident to your manager to the Situation Awareness Management Center (SAMC) online, or call 866-216-4809. Any loss or theft of an Information Technology (IT) asset, hardcopy PII data, or remittance must be reported to TIGTA at 800-366-4484. If the sender has already reported, ask the sender for the Cyber Incident Report number, and reference it when providing any information to officials.

  2. Management Reviews. Supervisors are responsible for conducting and documenting managerial reviews at least quarterly to ensure that procedures are being followed. Management may, at its discretion, conduct these managerial reviews at more frequent intervals.

3.8.47.4.4  (10-01-2013)
Securing Returned Refund Checks for Transit

  1. Internal Controls and Security. Taxpayers may return IRS refund checks or other government refund checks to field offices for crediting to other tax accounts.

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

  3. At the campus, returned refund checks received in the Field Office Payment Processing function should be routed to the Payment Perfection Unit (PPU). PPU will credit the payment and forward returned refund checks along with any document(s) to the Refund Inquiry Unit. You must follow standards for transshipping personally identifiable information (PII) when transshipping returned refund checks out of the building. IRM 3.8.47.4.3

    1. Use a completed Form 3210, Document Transmittal, listing the package contents.
      Indicate the check symbol, check number and the dollar amount of each check. The check symbol and check number are in the upper right hand corner. Form 3210 can be found at the following link http://core.publish.no.irs.gov/forms/internal/pdf/22150g90.pdf

      Note:

      If the Field Office Payment Processing and PPU units are combined, process the valid government checks for payment of taxes through normal processing.

    2. The name of the sender (originator), return address (with stop number), and telephone number are required on all transmittals.

    3. Annotate "RETURNED REFUND CHECKS RECEIVED mm/dd/yyyy", in the remarks section of Form 3210. Include the original and acknowledgement copy with the remittance package. Request the acknowledgment copy be returned as proof of delivery of each item.

    4. Double wrap all in opaque envelopes or boxes. Use shipping material appropriate for the weight of the package.

    5. The sender must establish a log and ensure delivery and follow up within 10 days. Check the log daily as acknowledgements are returned and place a distinctive check mark adjacent to the item confirmed to document all acknowledgements are returned. The location of the log is determined by local management.

    6. The sender or originator must follow-up within 10 business days to ensure delivery. Follow up with the destination Refund Inquiry Unit within 10 working days if the acknowledgement copy is not received or if all refund checks listed were not marked as received.

    7. Immediately report any loss, theft or improper disclosure of PII or sensitive information to your manager, the Situation Awareness Management Center (SAMC) online, or call 866-216-4809.

  4. Management Reviews. Supervisors are responsible for determining the location of the log and conducting and documenting managerial reviews at least quarterly to ensure that procedures are being followed. Management may, at its discretion, conduct these managerial reviews at more frequent intervals.

3.8.47.4.5  (10-01-2013)
Security of Forms 809 Receipt for Payment of Taxes

  1. Managers of Remittance Processing Operations have specific responsibilities relating to the security, internal control, issuance, and disposition of Form 809, in addition to the care that must be given any remittance handling. Form 809 must be handled with the same care and precision as cash. The following procedures are required when handling Form 809.

    1. Form 809 are pre-numbered with letter prefixes and issued in numeric sequence. Each series of letter prefixes must be completely exhausted before a new letter prefix is used.

    2. You must have written authorization from a delegated official before a Form 809 book can be issued to an employee for the first time. Keep authorizations in the front of the Form 809 Part–3 audit file. Once authorized, an employee can reorder a Form 809 book. Retain authorizations on file as basis for subsequent book assignments as necessary for respective employees.

    3. Officials authorizing issuance of a Form 809 book must be designated by an Area Director or Field Director, Submission Processing at least once a year.

    4. Accountability and control of unissued receipt books must be assigned to one individual at the Submission Processing site, with an appropriate backup individual. This individual will keep a record of blank Form 809 by serial number and disposition, in the E-Trak 809 Database System.

    5. Individuals, who are authorized to issue Form 809 may not be responsible for inventory control of unissued Form 809 and may not be responsible for reviewing the completed receipts of others or themselves. Separation of these duties is required for strict internal control.

    6. Individuals assigned Form 809 books may not share the book with others. Once a book is assigned, it is for the exclusive use of the employee to whom assigned. Managers may not allow transfer of a Form 809 book once assigned by the designated Field Office Payment Processing function.

    7. Each assigned individual's Form 809 book must be stored in a separate locked security container, then stored in a locked container. Refer to IRM 10.2.14.7.4(4).

    8. Official receipts may not be used for training purposes.

      Note:

      Photocopies of sanitized receipts without serial numbers may be used for training.


    9. To void a receipt, when necessary write "VOID" across the face of all copies. Enter reason for voiding on the reverse of Copy 1. Voided Form 809 is then returned to the Field Office Payment Processing function.

    10. Managers must conduct periodic unannounced reviews of Form 809 Receipt for Payment of Taxes books assigned to their employees, no less than quarterly. All reviews should be documented with date of review and serial numbers.

    11. At least once a year, a pre-verification of employee information and annual reconciliation will be conducted to ensure all receipts are accounted for.

    12. Keep a log of all receipts issued to any walk-in-taxpayers.

      Note:

      Issuance of official receipts at campuses to walk-in taxpayers is only allowed on a rare exception basis, as approved by Field Director, Submission Processing.

  2. Unissued Form 809 must always be secured in high level security locked containers provided (or approved) by Headquarters, with Standard Form 700 Record for Security Containers completed with the names of the individuals with access. Limit access to the unissued Form, and keep the secure container locked when not in use, with the combination or key secured. For example, if you are filing Form 809 and have to leave the cabinet, lock the cabinet, and do not leave the combination accessible.

  3. Standard Form 700 Record for Security Containers Requirements for Submission Processing. Standard Form 700 is required to be posted inside all security containers, including high level security containers and safes storing monies, items of value and Form 809, Receipt for Payment of Taxes in remittance processing areas
    IRM 10.2.14 Methods of Providing Protection section 10.2.14.7.4(4) Control and Safeguarding of Keys and Cipher Lock Combinations requires that the record of combinations to the security container is maintained by using Standard Form 700.
    Complete a new Standard Form 700 clearly in ink on the same date a security container is acquired and you must also complete a new Standard Form 700 on the same date a combination or lock to a security container is changed.


  4. Instructions for Completing Standard Form 700 for Submission Processing.
    Complete Standard Form 700 Part 1 below block 10 by clearly printing the following information:

    1. Block 1: Area or post of duty

    2. Block 2: Building name

    3. Block 3: Room number

    4. Block 4: Division, Branch, Section or Office

    5. Block 5: Serial number of container

    6. Block 6: Manufacturer & Type of Container

    7. Block 7: Manufacturer & type of lock

    8. Block 8: Date the combination was changed. If this is a new container, list the date the container was acquired in Block 8.

    9. Block 9: Name and signature of Operations Manager, Receipt and Control, who is the responsible official.

    10. Block 10:Names and SEID numbers of all employees with the combination or key. Annotate the address and telephone number of all personnel with the combination or key.


    Complete Part 2A by clearly printing the following information:

    1. List the serial number of the container in the space marked Container Number.

    2. Print the combination clearly in the combination space.

    3. Insert the completed Form 700 Part 2A into a security envelope and place it for retention in a secure location under control of the Operations Manager, Receipt and Control Operation.


    Standard Form 700 must be clearly marked in legible print without error. Marking over, scratching out, correction fluid, correction tape, or lining through are not allowed.

3.8.47.4.6  (10-01-2013)
Separation of Duties and Form 809 Security

  1. Separation of Duties. Managers must ensure that all Remittance Perfection Technicians have only research command codes in their Integrated Data Retrieval System (IDRS) profiles. Command Codes that are considered "sensitive" and can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability, cannot be used by Remittance Perfection Technicians.

  2. Managers must ensure the use of Automated Command Code Access Control System and RSTRK (Restrict) with Definer R (Form 809 book users) is activated on the IDRS profile of any employee assigned to issue, verify or reconcile blank Form 809.

  3. When a manager authorizes an employee to have a Form 809 book, the manager must activate or simultaneously contact the IDRS Unit Security Representative to activate command code RSTRK (Restrict) with Definer R (Form 809 book users).

  4. When a manager assigns an employee to verify or reconcile blank Form 809, then the manager must activate or simultaneously contact the IDRS Unit Security Representative to activate command code RSTRK (Restrict) with Definer R (Form 809 book users).
    When a manager assigns an employee to verify or reconcile blank Form 809, then the manager must activate or simultaneously contact the IDRS Unit Security Representative to activate command code RSTRK (Restrict) with Definer R (Form 809 book users).

  5. A command code is considered "sensitive" if it can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability. Sensitive command codes are in IRM Exhibit 10.8.34-9 Restricted Command Codes for 809 Receipt Book Users and Submission Processing employees that issue, verify, or reconcile blank Form 809 (RSTRK with Definer R).

  6. Managers must also ensure that employees with responsibility for issuing tax receipts to taxpayers are not assigned to control the Form 809 inventory or to review completed Form 809. Refer to IRM 3.0.273.32.6, Separation of Duties. Refer to IRM 3.8.47.4.7 Separation of Duties, Sensitive IDRS Command Codes for Remittance Perfection Technicians with general payment processing responsibility.

3.8.47.4.7  (10-01-2013)
Separation of Duties, Sensitive IDRS Command Codes for Remittance Perfection Technicians

  1. Separation of Duties. Managers must ensure that Remittance Perfection Technicians have only research command codes in their Integrated Data Retrieval System (IDRS) profiles. Command Codes that are considered "sensitive" and can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability, cannot be used by Remittance Perfection Technicians. Additional restriction applies to Form 809 book users. Refer to IRM 3.8.47.4.6

3.8.47.5  (10-01-2013)
CAMPUS REMITTANCE PROCESSING (of Field Office Receipts)

  1. This section prescribes procedures for campus remittance perfection technicians processing remittances received from field offices and processing Form 809 receipts.

3.8.47.5.1  (10-01-2013)
Receiving Field Office Receipts

  1. Field Offices must use overnight traceable service or other traceable approved method for transshipping remittances to the campus for processing.

  2. Campuses must have an official use only address for field offices. To ensure the security, accountability, and timeliness of tax receipts during transit, each Submission Processing site must provide a specific, official use address designated for field office employees to mail remittance packages.

  3. Formal communication of specific address for remittances for field offices is required. Field Director, Submission Processing or designee must inform all area offices by written memorandum to the director level of any changes to the designated address for field office remittance packages at least ten (10) days in advance of any change. IRM 21.3.4, IRM 5.1.2, and IRM 4.4.24 authors must receive a copy of the formal memorandum. IRM authors are listed on the following site http://win.web.irs.gov/IMD/imddocs/IRM_Authors_Listing.xls.
    Reiterate that the specific address for remittances is ONLY for the use of field offices and employees in the field.

  4. Security requirements for the campus mail opening operation.

    There are specific security requirements for the mail opening operation:

    1. Open all packages in the Receipt and Control secured area AND the area that has a contained ventilation system.

      Note:

      For example, if there is a separate ventilation system and opening the mail in the Field Office Payment Processing area would compromise physical security, the designated remittance perfection technician may open the mail in the area with the contained ventilation system, or a mail room employee may verify the remittance transmittal.


    2. The campus receiving area must direct remittance packages to the remittance processing area immediately upon receipt.

    3. The assigned remittance perfection technician must open and examine, date-stamp, verify the physical contents and contents listed on the transmittal, mark received items with a distinctive check mark in green. Note any missing items on the transmittal document and then sign the transmittal document. If items are missing, please retain the envelope(s) with the tracer information.

      Note:

      Mark only items that are actually received. If an item is not received, note the transmittal that it was not received. Take immediate action if remittances, Form 809 or PII are missing from a package. Refer to IRM 3.8.47.5.1(4)g below.


    4. Acknowledge receipt of all remittances and Form 809 with a distinctive check mark adjacent to the item within 5 working days. Originators of remittance packages are required to provide 2 copies of remittance transmittals, one that will be used as an acknowledgement copy by the campus. If an acknowledgement copy is not provided, photocopy the verified transmittal and mark Acknowledgement Copy, and return to the originator at the specific address listed on the transmittal.

    5. Once opened, remittance packages are subject to extraction and candling requirements to ensure all contents are extracted from packages, per IRM 3.10.72 Receiving, Extracting, and Sorting.

    6. Date stamp Form 809 Part-3 on the back of the form with the actual date is it received at the campus. If the Form 809 is internal, date stamp with the date it was received in the Field Office Payment Processing function.

    7. If any remittance, unissued Form 809 receipt, or personally identifiable information (PII) is missing from the package, the remittance perfection technician should take immediate action. Do not discard the envelope(s) with package tracer information.
      Inform local management. Contact the originator. If the originator does not have the remittance or unissued Form 809 receipt, immediately report as a loss or shortage.
      Follow IRM 3.0.167, Losses and Shortages procedures. You are required to immediately report every loss to your , the campus Remittance Security Coordinator and to TIGTA. You are required to immediately report all information losses to your , the Situation Awareness Management Center (SAMC) at (866) 216-4809, and (TIGTA) at (800) 366-4484. Refer to IRM 10.5.1 Privacy, Information Protection and Data Security - Policy and Guidance.

    8. Return all remittance transmittals to originators at the specific address listed on the transmittal within five working days of receipt of the package.


3.8.47.5.1.1  (10-01-2013)
Sorting Field Office Receipts

  1. Upon receipt, remittance perfection technicians will sort the contents of the package, verify the contents, and initiate or create labeled envelopes for acknowledgment of receipts within 5 working days according to local procedures. (Local procedures may direct Form 3210 Document Transmittal with attachments to a separate unit or area for processing.) If Form 3210 payment processing is directed to a separate unit, that unit must follow procedures for handling receipts. For example, application of timeliness or remittances must be adhered to, the issuance of Form 5919 Teller's Error Advice using the E-Trak 809 Database System, and all other IRM 3.8.47 Manual Deposit for Field Offices requirements to ensure strict internal control of receipts. Field offices send remittances to the designated site for their processing.

  2. Form 3210 Document Transmittal with documents should be received from the field offices in a separate envelope sealed by the originator, within the overnight mail package. The envelope should be annotated as containing Form 3210 Document Transmittal. Record the date received for all Form 3210 transmittals.

  3. Form 795 and Form 795A are transmittal documents used by all collecting officials to transmit returns and receipts. These documents should be received in a separate, sealed envelope within the same overnight mail package. These are the only forms that should transmit Form 809, Receipt for Payment of Taxes. However, if Form 3210 is used in error (to transmit a Form 809 receipt), then treat the Form 809 as if received with a Form 795 and Form 795A. Internal control of Form 809 applies.

  4. Sort Form 795 and Form 795A with documents by area office and operating division. Keep current day's receipts separate from the previous day. Work the largest dollars and earliest received dates first. Remittances over $100,000 must be deposited immediately upon receipt.

3.8.47.5.1.2  (10-01-2013)
Separate Sort of Composite 941 (Form 941M) at Cincinnati and Ogden

  1. Monthly filing and special deposit procedures are obsolete. Separate sort of composite 941 is no longer required at Cincinnati or Ogden Submission Processing Centers.

3.8.47.5.2  (10-01-2013)
Examining Field Office Remittance Packages

  1. Examine remittance packages carefully and verify that the physical contents of the package listed on the transmittal are received.

    1. Examine the package. If it appears to have been tampered with, and personally identifiable information and/or remittances or Form 809 are missing, a potential theft and/or loss of PII may have occurred. Refer to IRM 3.0.167, Losses and Shortages if there are losses.

    2. Determine if all pages of the remittance transmittal are included. For example, if a remittance transmittal indicates there are multiple pages, count the transmittal pages. If a page is not included, contact the originator to determine if a page is missing. Inform your manager. A potential loss of PII may have occurred.

    3. Examine each remittance item listed and place a distinctive check mark adjacent to the item in green to indicate it was received. If the remittance item is not clearly marked with a distinctive check mark, the originator may question whether the item was received. If a remittance is missing, you have a loss or shortage. Do not discard the envelope(s) when items are missing. Contact the originator immediately. Inform your manager.

    4. You must report incidents of missing, lost, stolen, or altered remittances (checks, money orders, etc.) and lost or stolen unissued Form 809 immediately. Inform your manager. Report to the TIGTA Office of Investigations at 800–366–4484. Also report to the campus Remittance Security Coordinator.
      It is important to report these occurrences to your manager immediately in addition to issuance of Form 5919 Teller's Error Advice.
      For example, a check is listed on a transmittal, but not received in the package at the campus, Form 5919 for response required is issued. The required response is the check. In addition, you will immediately inform your manager. If the field office manager's response to the 5919 is that he/she cannot locate the check, then the occurrence must be reported to the TIGTA Office of Investigations at 800–366–4484, Situation Awareness Management Center (SAMC), and the campus Remittance Security Coordinator.

    5. You must report losses of personally identifiable information (PII) within one hour to your manager, the Situation Awareness Management Center (SAMC) at 866–216–4809, TIGTA Office of Investigations at 800–366–4484, and the campus Remittance Security Coordinator.
      For example, when you receive a

    6. Examine the remittance package for timeliness, errors, prepare for processing, and generate error notices using the E-Trak 809 Database System. Ensure money amounts listed are the same as money amounts received.

    7. Date stamp the date received at the campus.

    8. Sign and date the remittance transmittal in the lower right hand corner.

    9. Return an acknowledgment copy to the originator at the specific address listed on the remittance transmittal within five working days.


  2. When examining remittance package contents, ensure all items listed on the Form 3210 Document Transmittal and Form 795 and Form 795A Daily Report of Collection Activity are included. For example, if an administrative employee in the field office sends multiple Form 795 and Form 795A and attachments for a group, the remittance perfection technician must ensure the Form 3210 transmittal has all items listed, and the individual Form 795 and Form 795A Daily Report of Collection Activity has all items included.

3.8.47.5.2.1  (10-01-2013)
Timeliness of Field Office Collected Remittances Defined

  1. All government funds collected must be deposited within three banking days (Title 31, U.S. C § 3302). Internal Revenue Code § 7809 further requires a 24-hour deposit standard for tax collections.

  2. Any IRS employee receiving a remittance from a taxpayer must transmit the remittance on the same day as received or as soon as possible the next business day to ensure receipt in the Submission Processing site within 48 hours of receipt from the taxpayer.

  3. Any campus receiving a remittance from a field office employee for processing must process the remittance within 24 hours or one workday.

  4. Cash must be converted to a money order or bank draft within 24 hours of receipt. TACs depositing cash must deposit within 24 hours of receipt.

  5. Remittance processors will issue Form 5919 to cite as late any remittance not received after 3 business days; or after 7 business days if remittance package originated outside the continental United States.

    Note:

    If overnight traceable method is not available to revenue officers in the field and the remittances must be transmitted using regular mail then 5 business days is allowed for additional mailing time.

3.8.47.5.2.2  (10-01-2013)
Applying Timeliness Criteria to Remittances (Determining when a Remittance Requires Issuance of Form 5919)

  1. Applying timeliness criteria. Remittance processors must cite as late any remittance that is received later than 3 business days from the date the IRS received the funds or 7 business days for packages originating outside the continental United States.
    If the remittance package was not sent via overnight service by the next business day, then cite as late if received later than 5 business days from the date the IRS received the funds to allow mailing time.
    Use the E-Trak 809 Database System for Form 5919 issuance.

  2. Misdirected remittances are remittances that were sent to locations that are not under a field office collecting function or depositing campus site, such as IRS Headquarters, Beckley Finance Center or Department of the Treasury Headquarters offices, in error. Do not issue Form 5919 for misdirected remittances.

  3. Counting business days. Count 3 business days, (count 7 business days if originating outside the continental United States) not including the day the remittance is received, to determine if timely. Count business days received in Collection Field function to determine timeliness of Mutual Collection Assistance Request (MCAR) collections.
    For example, if a remittance is received in the continental United States from a taxpayer on Monday, then the 3rd business day is Thursday. If the remittance is received on the following Friday or later, issue Form 5919 for late remittance.
    If a remittance is received in Hawaii from a taxpayer on Monday, then the 7th business day is the following week on Wednesday. If the remittance is received on Thursday of the following week or later, issue Form 5919 for late remittance.

  4. If the late remittance was remitted by a revenue officer in Collection, and the revenue officer annotated IRM 5.1.2.4(3) on the transmittal, then annotate IRM 5.1.2.4(3) in the comments section of Form 5919.

  5. Timeliness of MCAR Payments.
    Field employees receive payments from five mutual collection income tax treaty partners. These partners are Canada, Denmark, France, The Netherlands, and Sweden. A collection assistance provision requires the IRS to credit the payment transaction as of the date the partner received the payment (partner received date) rather than the date the IRS receives the payment (IRS received date.) Collection Field function employees will annotate the payment voucher with the IRS received date as follows: “MCAR payment IRS received date: "MM/DD/YYYY.” Use the MCAR received date to determine timeliness. In the absence of the notation, issue a Form 5919 Teller's Error Advice based on the received date on the posting voucher.

3.8.47.5.2.3  (10-01-2013)
Applying Timeliness of Remittances Criteria When Overnight Traceable Method is Not Available

  1. Field offices and officials must use overnight traceable method for sending remittances. Remittance processors will cite as late any remittance that is received later than 3 business days from the date collected. Rarely in remote areas or emergencies, "overnight" service is not available. If overnight service was not used then the timeliness criteria is 5 business days to allow the additional mailing time.
    For example, if a remittance is received from a taxpayer on Monday, then the 5th business day is the next Monday. If the remittance is sent via overnight traceable method and received in the campus the next week on Tuesday or later, issue Form 5919 for late remittance.

  2. Cash received by field office employees must be converted within 24 hours, even when overnight traceable method is not available used to transship payments.

3.8.47.5.2.4  (10-01-2013)
Late Remittance / Lost Opportunity Cost Reports for Area Offices

  1. Deposit Timeliness. One of the Service's Balanced Measures is Deposit Timeliness. Remittance perfection technicians cite remittances collected in field offices as late, when applicable, by issuing Form 5919 Teller's Error Advice to the field office manager. Use the E-Trak 809 Database System to input an employee error by the SEID.
    If the SEID does not exist in the E-Trak 809 Database System, then send an email to the system administrator. The FY 2013 corporate balanced measure for area offices is $207 per million dollars of deposits. At the time of this writing, the FY 2013 targets had not been announced.

  2. Provide late remittance reports by the 5th workday. Provide late remittance reports in electronic copy (or pdf. copy) by the 5th workday following the end of the month to the Area Director (or their designee) whenever the office(s) do(es) not meet the national target timeliness goal. Provide a cc copy to the Headquarters analyst for the Field Office Payment Processing program and the area office analyst. Ogden and Cincinnati campuses must also provide a monthly late remittance report in Excel format to the Headquarters analyst for Collection Policy.

  3. Provide late remittance reports upon request. Field office management may request late remittance reports for their respective offices.

  4. Ensure accurate information is distributed to the management officials for the functional area. If an error is discovered on a late remittance report after distribution to management, then issue a corrected report to the same audience within 3 business days of discovery.

  5. Late Remittances due to untimely delivery by overnight mail service provider. The Office of Postal and Transport Policy monitors service of IRS overnight mail providers. When remittance packages are late or lost due to delays in delivery or pickup by providers, accountable officials must inform the Office of Postal and Transport Policy through their local point of contact.

  6. How to handle Form 5919 Late Remittance Errors. If you have issued Form 5919 late remittance in error, then the campus manager may add a statement in the comments section of Form 5919. The comment will be included in the Late Remittance report. If you discover the error after the Late Remittance Report has been distributed to management, then you must re-issue the Late Remittance Report to indicate the correction. . Do not remove the error as if it did not occur. Document the transaction accurately. Lost packages containing personally identifiable information (PII), such as TINs, must also be reported to the Situation Awareness Management Center (SAMC) at 866–216–4809. You must also report updates to the SAMC. For example, if you recover a lost remittance, then contact SAMC and provide the information on the incident.

  7. Ogden and Cincinnati must provide late remittance reports to the Headquarters analyst for Collection Policy monthly in Excel format.

3.8.47.5.3  (10-01-2013)
Form 3210 Document Transmittal Processing

  1. Form 3210 Document Transmittal for Remittances. Many field office employees use Form 3210, Document Transmittal to transmit remittances. They must transmit by the close of each day or as soon as possible the next business day. Apply timeliness of remittances and critical error criteria to all field office receipts, except misdirected remittances.

  2. In order to verify all items sent and received, the transmittal should list all items, the individual money amounts, and a total of the amount of the items.

  3. The table below indicates the steps necessary in receipting the Form 3210.

    Step Action
    1 Verify every item received with a distinctive check mark. If a non-remittance item is not included, note the transmittal document. If a remittance or Form 809 receipt is listed and not included, then contact the originator. Inform your manager. If the remittance or Form 809 is determined to be missing, then follow procedures in IRM 3.0.167, Losses and Shortages.
    2 In the bottom right hand corner, sign and date both the original and the copies of Form 3210 Document Transmittal.
    3 Determine if remittances are timely. If the remittances are not timely, then issue Form 5919 for late remittance.

    Note:

    If the late remittance was remitted by a revenue officer in Collection, and the revenue officer annotated IRM 5.1.2.4(3) on the transmittal, then annotate IRM 5.1.2.4(3) in the comments section of Form 5919.

    4 Review for errors.
    5 Return the acknowledgment copy to the originator at the specific address listed on the transmittal within 5 workdays of receipt.
    6 File the receipted original according to local procedures.
    7 File the campus copy according to local procedures.

    Note:

    Form 3210 should remain filed for a period of three years. Refer to IRM 1.15.29, Records Control Schedule for Submission Processing Campus.

3.8.47.5.3.1  (10-01-2013)
Errors Discovered on Form 3210 Document Transmittal

  1. If you discover critical errors on a field office remittance transmittal package, issue Form 5919 Teller's Error Advice (response required) to the appropriate field office (first level) manager. If the manager's name is not listed on the transmittal, then find manager's name on the IRS Discovery Directory.
    Critical errors are defined as those errors associated with waste, fraud, embezzlement, abuse, and include:

    1. Late Remittances.

    2. Form 809 Receipt for Payment of Taxes errors in critical fields.

    3. Cash conversion not within 24 hours of receipt or one workday for field offices; 5 workdays for campuses if less than $5000.

      Note:

      If Form 809 is transmitted on Form 3210 in error, treat Form 3210 as a Form 795 and Form 795A Daily Report of Collection Activity transmittal.


    4. All Money amount discrepancies (different dollar amounts received than listed and/or totals and/or item money amounts differ).

    5. Remittance not included (Missing Payment).

    6. Illegible.

    7. Form 809 listed but not included.

  2. If you discover other errors, identify the error on the transmittal. Non-critical errors are those that do not involve money amounts. You will use the transmittal to state that a non-critical error was made on one of the following:

    • Transmittal document,

    • Remittance,

    • Posting document, or

    • Tax return.

  3. If you cannot correct the error, it may be necessary to call the originator or the field office manager. If you discover gross errors, inform your manager. Submission Processing Center managers may issue Form 5919 Teller's Error Advice to inform field office or campus managers of gross errors, at their discretion. Non-critical errors do not require issuance of Form 5919. Follow IRM 3.10.72 and IRM 3.10.73, Media Transport and Control for general Form 3210 handling on non-remittance items.

3.8.47.5.4  (10-01-2013)
Procedures for Sending Tax Receipts to Submission Processing Centers and Addresses for Field Office Employee-Collected Remittances

  1. Procedures for sending tax receipts to Submission Processing Centers. Field offices and field employees must send receipts to the aligned Submission Processing Center at the dedicated official use only address identified by the Submission Processing site.

    1. All daily remittances must be sent by overnight traceable method. Use overnight traceable method to send remittances to the designated Submission Processing Center. This ensures we meet our corporate responsibility for timely payment processing and customer service. Use the contract overnight service provider or registered mail with the United States Postal Service. Double wrap these mailings in opaque paper envelopes or boxes to protect taxpayer information.

    2. Tax receipts must be timely. Transship to the designated Submission Processing Center on the day of receipt from the taxpayer, or as soon as possible the next business day. Do not send cash in the mail. Convert cash to a money order (or bank draft) payable to United States Treasury before mailing.

    3. Include a completed posting document. for proper crediting of customer accounts, if the remittance is not attached to an original tax return. Use a transmittal document, listing specific package contents. Form 809 Receipt for Payment of Taxes, are transmitted via Form 795 and Form 795A Daily Report of Collection Activity. The name of the sender, return address (with stop number), and telephone number is required on all transmittals.

    4. The sender must establish a control to ensure delivery of tax receipts. The control must include dollar amounts of taxpayer receipts by Taxpayer Identification Number (TIN), correlated to the package tracer information. For example, if the transit provider informs IRS that package number 12345-67-89 was destroyed, a control is needed that enables proper identification of impacted taxpayer(s) so that relief could be granted. If remittance packages are lost during transit, the sender must report to the Treasury Inspector General for Tax Administration Office of Investigations (TIGTA) at 800-366-4484 and personally identifiable information (PII) losses must also be reported to Situation Awareness Management Center (SAMC)) at 866-216-4809.

    5. Submission Processing Centers must place a distinctive check mark adjacent to all remittances received and return a copy to the originator as acknowledgement within five (5) workdays. Senders must follow up with the destination Submission Processing Center within ten (10) workdays on deposit packages not acknowledged, or specific remittance items not acknowledged.

    6. Preparing remittances for mailing.
      The inside envelope or box is required to contain the following:
      Name and title of the person who is authorized to open the package,
      Address of the receiving office, and
      Return address of the office mailing the package.
      "Limited Official Use" is required to be clearly marked or stamped on the front and back of the inside envelope or box. Use of an E-19 or E-20 "Confidential Information—To be opened by addressee only" envelope is acceptable.

      Note:

      The responsible official authorized to open the package is Submission Processing Operations Manager, Receipt and Control. The Operations Manager may designate specific staff members who may open the package. We recommend that "LARGE" be annotated on envelopes containing a single remittance of $100,000 or more or if the aggregate total of remittances is $100,000 or more.


    7. The outside envelope is required to contain the following:
      Title of person authorized to open the envelope or box,
      Name of the person must not be included,
      Office name and address of the receiving office, and
      Return address of the office mailing the remittance package.

  2. Submission Processing Center specific addresses (with stop numbers), key contacts, and E-mail addresses are listed on the Field Office Payment Processing site. Use of the Campus Ship tool is recommended to ensure the correct address. The tool is available through the Office of Postal Policy.

3.8.47.5.4.1  (10-01-2013)
SUBMISSION PROCESSING CENTER / FIELD OFFICE PAYMENT PROCESSING ALIGNMENT FOR FORM 809 RECEIPTS AND OTHER PAYMENTS

  1. SUBMISSION PROCESSING CENTER / FIELD OFFICE ALIGNMENT FOR FORM 809 and Other Tax Payments: Submission Processing Centers Field Office Payment Processing units process Form 809 and most other tax payments collected in field offices as aligned. Major groups of tax payment collectors in the field are aligned with specific sites.
    Austin, Fresno and Kansas City service Field Assistance Taxpayer Assistance Centers (TACs) and payments that cannot be processed on RS-PCC.
    Austin, Fresno and Kansas City service field office mail remittances not solicited by a business area that require research (unable to process through RS-PCC).
    Cincinnati and Ogden service SB/SE Collection Field function and SB/SE Examination field offices.
    Ogden services LB&I and TE/GE field office functions.
    Kansas City services the Appeals organization and is the designated research and processing site for misdirected remittances into Headquarters offices.
    Cincinnati and Ogden service any field offices routing payments with original BMF tax returns.
    Austin services the Office of Voluntary Disclosure Program (OVDP) voluntary disclosure initial packages from taxpayers.

  2. Field office functional areas and their servicing site can and must process all tax payments received timely and accurately.

    Field Office Functional Area Servicing Submission Processing Center
    Field Assistance Area 1 Fresno
    Field Assistance Area 2 Kansas City
    Field Assistance Areas 3 and 4 Austin
    Field Assistance Area 5 Fresno
    Collection (States Serviced by Ogden) Collection offices are serviced by either Cincinnati or Ogden as aligned by state.
    States serviced by Ogden are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, International, Louisiana, Maryland, Mississippi, Montana, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Puerto Rico, South Carolina, Tennessee Texas, Utah, Virginia, Washington, and Wyoming.
    Collection (States Serviced by Cincinnati) Collection offices are serviced by either Cincinnati or Ogden as aligned by state.
    States serviced by Cincinnati are Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New York, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, West Virginia, and Wisconsin.
    SB/SE Examination SB/SE Examination offices are serviced by Primary Business Code (PBC).
    Cincinnati services PBC 201, 202, 204, 212, 213, and 214.
    Ogden services PBC 203, 205, 206, 207, 301 through 309 and 315.
    Appeals Kansas City
    Misdirected remittances into Headquarters Offices, Department of the Treasury, Beckley Finance Center (research and processing) Kansas City
    TE/GE Ogden
    Campus Support Ogden
    LB&I Ogden
    International IMF Austin
    International BMF Ogden
    Offshore Voluntary Disclosure Program Austin
    Field Office mail remittances not solicited by any business area (and research is required). Austin, Fresno or Kansas City based on state alignment of Field Assistance (FA) areas.
    FA Areas 1 and 5 are serviced by Fresno.
    FA Areas 3 and 4 are serviced by Austin.
    FA Area 2 is serviced by Kansas City.

  3. The research and deposit servicing site for Headquarters IRS and Department of the Treasury administrative offices that receive misdirected remittances is Kansas City. Misdirected remittances are those that are forwarded to an office that is not under a field office function or depositing campus.

  4. Cincinnati and Ogden service SB/SE Field Collection revenue officers, SB/SE Examination, Technical Services, Technical advisors and Tax examiners. SB/SE Property and Liquidation Specialists are serviced by Ogden. Ogden services LB&I Division, including BMF International.

  5. The Field Director, Submission Processing of each campus or their designee must communicate any change to the specific address for remittances to all area office directors for dissemination and authors of IRM 21.3.4 Field Assistance, IRM 5.1.2 General Handbook-Remittances, Form 809 and Designated Payments, and IRM 3.8.47, at least (10) ten days in advance of change. Any communication to field offices regarding the address must reiterate that the specific address is only for the use of field office employees to send remittances under their direct control. Official use only addresses for remittances must not have any terms identifying remittances on the outside envelope. Field office employees must provide public addresses listed on tax form instructions to taxpayers.

3.8.47.5.5  (10-01-2013)
Receipt Form 795A (CG) Remittance and Return Report

  1. Form 795A (CG) Remittance and Return Report is the transmittal used by revenue officers and collecting officials most frequently for all daily collections, (paper checks, money orders, Form 809 receipts and tax returns). It is generated by the Integrated Collection System (ICS). Remittance perfection technicians must review, verify and receipt Form 795A CG, Remittance and Return Report and Supplemental Remittance and Return Report.

  2. Mark items and remittances received with a distinctive check mark. If any item is missing, note the transmittal document. If a remittance or Form 809 is listed and not enclosed, note the transmittal document. Immediately contact the originator or issue Form 5919 to alert the office a remittance is missing. See When to Issue Form 5919 for specific instructions.

  3. Form 795A (CG) does not require close review of entity information, since it is systemically generated. Check the name and compare to the Form 809 listed to ensure it is the same employee's transmittal.

3.8.47.5.5.1  (10-01-2013)
Receipt Form 795 and Form 795A Daily Report of Collection Activity Transmittals

  1. Receipting Form 795 and Form 795A is the manual means verification of what was received with the transmittal. This is a very important step in processing field office-collected payments. Each individual item and remittance transmitted, including Form 809 Part–3 audit files must be included. If any required part of Form 809 is missing, you must note the 795 transmittal document, as well as issue Form 5919 Teller's Error Advice to inform the appropriate field office manager. The original of the receipt will be maintained in the unit files. The copy will be sent to the originator as an acknowledgment that the documents were received. Send acknowledgments within 5 working days to the originator at the specific address listed on the transmittal.

  2. The following table indicates the steps in this process.

    Step Action
    1 Verify both the original and duplicate copy of Form 795 and Form 795A with a distinctive check mark for each specific remittance item in the column or space adjacent to the remittance item. It is not necessary to check mark descriptions of an item. For example, 1 check for MFT 30, Tax period 2010, requires only one distinctive check mark acknowledging the remittance was received.
    2 If necessary, use an empty block for comments.
    3 In the space provided in the lower right hand corner, initial and enter the date the returns and remittances are detached from both the original and the copy of Form 795.
    4 Return the initialed copy of Form 795 to the originator (person who sent the Form 795) at the specific address listed on the transmittal within 5 workdays as acknowledgment of receipt for the remittances, returns, and posting documents.
    5 File the original in chronological order by field office in ascending date order. Files should distinguish between operating divisions.
    6 Retain Form 795 records for 3 years (the current calendar year the Form 795 was submitted plus two years).

  3. Time Sensitivity: It is extremely important that these documents are submitted timely. Timely submissions and transmissions are those that take place at the close of the business day or as soon as possible the next business day.

3.8.47.5.5.2  (10-01-2013)
Remittance Packages from Cash Depositing TACs

  1. Some TACs deposit cash payments locally into Treasury Government Authorized (TGA) banks and send only noncash remittances to campuses for processing. TACs that deposit cash will provide additional items in the daily overnight remittance package in a separate envelope marked for Campus Accounting. Employees will have a separate Form 795 for cash items deposited, in addition to the Form 795Afor non-cash remittances. The following items will be included:

    1. Form 795 listing individual Form 809 by serial number and associated Form 809 (Parts 1 and 3).

    2. IDRS print of tax class totals from PYBAL, generated from input of command code PAYMT. Route to Campus Accounting.

    3. Copy of approved Over the Counter Channel Application (OTCnet) deposit ticket with tax class listing. Route to Campus Accounting.

    4. Statement of losses, shortages, or discrepancies associated with the deposit (if applicable). Route to Campus Accounting.

      Note:

      If there are any deposit or posting discrepancies identified, that must be corrected by the campus, then the TAC manager will provide a signed Form 2424 Account Adjustment Voucher with the deposit. If there are discrepancies with the daily TAC deposit that are not identified by Campus Accounting, then the TAC manager will provide the digitally signed Form 2424 Account Adjustment Voucher within 24 hours of notification.

    5. Form 2424 Account Adjustment Voucher, if any losses, shortages, or discrepancies are applicable to that day's work. Route to Campus Accounting.

  2. TAC managers will provide a digitally signed Form 2424 Account Adjustment Voucher, within 24 hours upon notification from Campus Accounting that an out of balance condition exists.

3.8.47.5.5.3  (10-01-2013)
Errors Discovered on Form 795 and Form 795A CG Daily Report of Collection Activity or ICS Remittance and Return Report

  1. If you discover gross errors or omissions made by a field office employee (during the process of perfecting the posting documents), it may be necessary to contact the originator or field office manager. For example, if a remittance is listed and not included, take immediate action to alert the originator. If not found, the remittance may be lost or stolen. Critical errors are errors that may indicate potential waste, fraud, or embezzlement, such as late remittances, late cash conversion, incorrect money amounts, money amounts out of balance, money amounts that do not match the amount listed on the posting document.

  2. Non-critical errors are all other errors, and include:

    • Transaction code

    • MFT code

    • Uncorrected or illegible markovers in non-critical fields on Form 809. (Non-critical fields are those that are not money amounts, taxpayer name, employee signature, date, Taxpayer ID number.)

      Note:

      If there are widespread non-critical errors, inform the manager. Managers, at their discretion, may contact the area office to discuss widespread errors. Local training may be the issue. If an IRM change is needed, forward to the Headquarters analyst for the Field Office Payment Processing program.

  3. Non-critical errors may be corrected in green. Annotate the corrective actions taken in green on Form 795 and Form 795A. Form 795A must be returned to the originator at the specific address listed on the transmittal. If there are non-critical errors, note the transmittal document. The receiving employee is responsible for reviewing these to ensure they are not repeated. If there are errors noted on the transmittal document, that resulted in an incorrect application to taxpayer accounts, the originating employee will initiate the correction. Non-critical errors do not require issuance of Form 5919.

  4. In the space provided in the lower right hand corner, initial and enter the date the returns and remittances were received on both the original and the copy of Form 795.

  5. Critical errors are those associated with potential fraud and require preparation and issuance of Form 5919, Teller's Error Advice and issuance to inform the appropriate field office manager. A memorandum may be sent in lieu of Form 5919, as a notice informing the manager of errors. List critical errors on the monthly Trends and Patterns Reports provided to the territory manager or department manager.

  6. Occasionally, a Trend and Pattern Report may have an error. If error(s) are discovered after you have distributed the report, then re-issue a corrected report to the same management audience within 3 business days of discovering the error. Do not rescind Form 5919 Teller's Error Advice, unless the remittance perfection technician should not have issued an error notice.

  7. If a late remittance is cited in Collection, and the revenue officer annotated IRM 5.1.2.4(3) on the Form 795A CG transmittal, then you must annotate IRM 5.1.2.4(3) in the comments section of Form 5919.

3.8.47.5.5.4  (10-01-2013)
Procedures for Form 2290 Heavy Vehicle Use Tax Return with Receipted Form 809 (for sites other than Cincinnati)

  1. You may receive Form 2290 Heavy Vehicle Use Tax Return with a Form 795 and Form 795A, Daily Report of Collection Activity, transmitting a Form 809 receipt. This may happen because the employee who collected the payment was not aligned with Cincinnati, or may occur in error.

    1. If the Form 809 is not aligned with your site, send Parts 1 and 3 of Form 809 and the 2290 original return to the teller unit of the Submission Processing site that issued the official receipt book.

    2. The remittance processor will verify receipt of funds, control Form(s) 809, and remove the Form 2290-V. Use Form 809 as a posting document. Forward the original return to Cincinnati at the address listed in (j) below.

  2. Verify the following:

    1. TIN.

    2. TAX PERIOD.

    3. NAME AND ADDRESS.

    4. EDIT Transaction Code 610.

    5. DATE STAMP WITH THE Form 809 RECEIVED DATE.

    6. EDIT Form 809 "NOT A POSTING DOCUMENT."

    7. STAPLE Form 809 TO BACK OF Form 2290-V.

    8. Edit in Red at the bottom of Form 2290 and Form 2290-V Receipt serial number issued.

    9. Edit in red the money amount of check in the left hand corner of Form 2290.

    10. Transship the original return to Cincinnati at the following address:
      Internal Revenue Service
      201 West River Center Blvd. Stop 31
      Covington, KY 41011

    11. Process payment via ISRP.

3.8.47.5.6  (10-01-2013)
Integrated Collection System (ICS) Procedures

  1. The Integrated Collection System (ICS) is used by Small Business/Self-Employed Division Collection officials. Remittance perfection technicians in Cincinnati and Ogden servicing SB/SE may research ICS for the intended application of a remittance when it is questionable.

3.8.47.5.6.1  (10-01-2013)
Integrated Collection System (ICS) Functionality

  1. The Integrated Collection System (ICS) contains case information, automated payment posting vouchers, and Form 795 and Form 795A Daily Report of Collection Activity. Remittance processors have READ-ONLY capability. ICS is a useful tool for researching the intended application of a payment when questionable. A Guide to ICS Payment Research is on the ICS web site at http://icsweb.web.irs.gov/ .

  2. ICS quality analysts update employee locator information. Sites servicing SB/SE Collection may use the employee tables to help keep Form 809 control information current.

  3. Whenever remittance processors access the ICS system, a history item must be input to show the reason. All IRS computer security/security of taxpayer data requirements apply.

  4. Revenue officers and other Collection field office employees use ICS to generate payment posting vouchers. When ICS is inoperable for more than 2 business days, employees should use Form 3244 Payment Posting Voucher and Form 795 Daily Report of Collection Activity to manually forward remittances to Submission Processing and avoid delays in processing remittances to taxpayer accounts.

3.8.47.5.7  (10-01-2013)
Processing Supplemental Form 795 and Form 795A, Daily Report of Collection Activity

  1. If the submission of returns or remittances is delayed or for expeditious routing of large remittances, the originator will transmit remittances on a supplemental Form 795 and Form 795A. The Supplemental Form 795 is the same as Form 795, except that the originator will write "Supplemental" in red on the top of the form.

  2. In reviewing the Supplemental Form 795, remittance perfection technicians follow the same steps as for the Form 795. In addition, make sure it contains the following:

    • The date items were received,

    • An explanation for the delay, written on the reverse side of the original,

    • Field office manager's signature or initials (indicating approval).

  3. If the remittance is late, then enter Form 5919 Teller's Error Advice for supplemental late remittance into the E-Trak 809 Database System. In the comments section annotate Late Supplemental remittance. Late remittances are included on the Trends and Patterns report and lost opportunity costs are included on the Late Remittance reports to area offices.

  4. Supplemental Form 795-A procedures must be followed by Taxpayer Assistance Centers (TACs) when RS-PCC is down due to systemic reasons and the TAC is directed to transship. Supplemental Form 795-A must include the RS-PCC downtime dates. When received at the Submission Processing Center, RS-PCC downtime dates are not counted as business days when applying the timeliness criteria for citing late remittances and issuing Form 5919 Teller’s Error Advice Notice(s).

3.8.47.5.7.1  (10-01-2013)
Receipting Supplemental Form 795 and Form 795A Daily Report of Collection Activity

  1. In receipting the Supplemental Form 795 and Form 795A, follow the same steps as in receipting the Form 795 and Form 795A.

3.8.47.5.8  (10-01-2013)
FORM 809, (OFFICIAL) RECEIPT FOR PAYMENT OF TAXES INTERNAL CONTROLS

  1. Form 809, Receipt for Payment of Taxes, the official receipt for taxpayer payments, is very important because it represents money. Handle with the same care and precision required for cash handling. IRM 5.1 2 Field Collecting Procedures - Remittances, Form 809 and Designated Payments and IRM 21.3.4 Taxpayer Contacts - Field Assistance, prescribes field office employee procedures for Form 809 handling for SB/SE and W and I Field Assistance respectively. Additionally, IRM 4.4.24 AIMS Procedures and Processing Instructions - Payments and Remittances provides processing procedures for payments in LB& I and SB/SE Examination functions.

  2. As a remittance processor in Field Office Payment Processing, you are responsible for the processing and inventory control of Form 809. You must enter accurate information in the 809 Database or 809 Database System showing the exact disposition of all Form 809 books by serial number.

  3. Each book of Form 809 receipts contains 50 consecutively numbered four-part Form:

    • Part-1, Posting Voucher

    • Part-2, Receipt for Payment of Taxes

    • Part 3, Memo Copy (remittance processor copy)

    • Part-4, Receipt Book Copy (remains with book cover)

3.8.47.5.8.1  (10-01-2013)
Use of Form 809 Receipt for Payment of Taxes

  1. Field office and campus employees must issue Form 809 when they receive cash. If a payment is by check, money order, draft, etc., a receipt is issued upon request. Every taxpayer is lawfully entitled to an official receipt upon request. Form 809 is the Service's only official receipt. The Service requires strict control of Form 809 Receipt for Payment of Taxes by all employees. If presented with a document other than an official receipt, report the occurrence to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 800-366-4484.

  2. When field office employees issue Form 809, the receipt becomes a posting document. The only exception is when the remittance is submitted with an original return, then the original return becomes the posting document.

3.8.47.5.8.2  (10-01-2013)
Authorization to Issue Form 809 to Field Employees

  1. An initial Form 809 Receipt for Payment of Taxes book must be requested by memorandum signed by an authorized official before a Form 809 book can be released.
    Authorized officials are designated by the Area Office Director or Field Director, Submission Processing (for campus Form 809 books holders) and must be kept on file, with Form 809 Part-3 audit control files.
    The authorizing official must provide the official name of the employee (or approved pseudonym); SEID or unique identifier number, badge number, addresses and names of territory and area managers names, addresses, E-mail addresses and telephone numbers.

    Note:

    IRM 1.2.4 General Management--Use of Pseudonyms by IRS Employees, provides procedural instructions for pseudonym use. Pseudonym registries are maintained by local offices.

  2. At least once a year, each Submission Processing site must obtain a listing of officials authorized to approve issuance of Form 809 receipt books from the area director of all aligned functions and offices serviced. This listing must be checked to ensure officials requesting issuance of a Form 809 book. If not, do not issue the Form 809 book.

3.8.47.5.8.3  (10-01-2013)
Perfecting Form 809

  1. Since Form 809 is high security items, you must treat Form 809 with the same care and precision as cash. Additional verification is needed. You will receive Form 809 Part-1 Posting Voucher, and Form 809 Part-3 Memo Copy (audit file copy). You will also receive Form 809 Part-4 Receipt Book Copy within 30 days of when the book is completed. You must review the form to make sure it has:

    • No erasures, alterations (of any kind), or markovers in the following critical fields (all money amounts, assessment amounts, taxpayer name and TIN, date of issue, and employee signature).

      Note:

      Alterations to Form 809 critical fields by correction tape or fluid are not allowable.

    • No math errors.

    • The correct amount of money is remitted with the Form 809 receipt. Look at the money amount on the posting voucher to see that it is the same as the remitted amount.

      Note:

      If you do not receive a money order or bank draft for the correct amount of cash with Form 809, then you must treat this as a shortage or overage. For cash courier payments processed in TACs, the correct amount of money must be posted to the tax account. Refer to IRM 3.0.167, Losses and Shortages.

    • A correct and unaltered signature of the employee to whom the book was issued, or their approved pseudonym.

    • Cash that was converted within one working day after it was received by the field office employee.

      Note:

      Submission Processing and Campus Support employees convert cash less than $5000 weekly. Cash is turned in daily to local management.

    • Cash conversion information recorded on Part-3 of the form. This consists of the:
      Name of the institution converting the cash,
      Serial number of the bank check or money order, and
      Date of the conversion.

    • Only one tax period listed, or user fee.

    • The taxpayer's complete address.

    • No inconsistencies on the carbon copy.

    • Write the taxpayer's name and address on the money order.

      Note:

      Lockbox sites may send cash of less than $1 to campuses for processing. The campus employee converting the cash should annotate RECEIVED FROM LOCKBOX MM/DD/YYYY, (date received from Lockbox) on Part-3 of the Form 809.

  2. When errors are discovered as listed in (1) above, create Form 5919 Teller's Error Advice for response required. A response is required to ensure accountable field office manager is aware and/or to retrieve the required remittance, document or information. If no information, document, or remittance is needed, a return E-mail marked READ is sufficient to close the Form 5919 control.

  3. MFT Incorrect: If Form 809 is being used as a posting voucher, ensure the MFT is correct for the type of tax. If the MFT is different from the type of tax, and the MFT is the obvious error, edit the Form 809 in green for the correct MFT to avoid processing errors.

  4. Name Control Incorrect: If Form 809 is being used as a posting voucher, and there is an obvious error with the name control, edit the Form 809 in green for the correct name control. If you are unsure that the return is an original document, follow IDRS Presearch procedures.

3.8.47.5.8.4  (10-01-2013)
Critical Errors on Form 809 or Remittances (Requires Issuance of Form 5919 and Acknowledgement)

  1. Form 809 must be free of error in all critical fields. Remittance processors will inform field managers when conditions exist that have been associated with potential fraud or embezzlement. These are known as critical errors. Remittance perfection technicians will issue RESPONSE REQUIRED Form 5919, Teller's Error Advice. File a copy of Form 5919 issued for official receipts daily in the official audit file.

  2. Timeframes for issuance and return of Form 5919. Remittance perfection technicians must issue Form 5919 electronically from the 809 Database or E-Trak 809 Database System within 3 business days of receipt of the critical error and within 5 business days during the peak season. (Ten business days are allowed when payments have already been processed.)
    Generally, allow 15 workdays from the date of issuance of Form 5919 for the field office manager to respond. If there is a business need, reduce the timeframe for the response. For example, if Form 5919 is issued because a remittance was not attached, it should be sent the next business day. The originator's response is accompanied by Part-2 of the Form 5919. If no response is received within the requested time frame, issue a SECOND REQUEST Form 5919. Form 5919 must be annotated "SECOND REQUEST" in the subject of the E-mail, and on the form itself.
    Generally, the second response date is five workdays from the date of issuance. If there is a business need, shorten the timeframe. Send parts one and two of the Form 5919 to the Group Manager of the employee making the error. Use the 809 Database or 809 Database System to issue Form 5919 as a pdf. or snapshot file via E-mail. If issuing Form 5919 via E-mail, you may shorten the required response time. You may also flag the electronic Form 5919 E-mail message for READ. When using the electronic version, a copy of an E-mail marked READ by the field office manager may satisfy the requirement for a signature only, assuming no other information, remittance or document is needed to complete the control. Add a statement that copies of supporting documentation are available upon request, and list contact information. You may not use E-mail to send any taxpayer information.

  3. When second notices are necessary, (meaning you did not receive a response on the date requested on the first request), send parts one and two to the group manager.
    If you received the required acknowledgement or response, then do not issue a second Form 5919 notice.
    If there are multiple Form 5919 without responses, then inform your manager. Managers should initiate discussions with field office management. Managers must contact the territory manager or department manager by phone if Form 5919 for critical errors is not acknowledged at territory manager or department manager level.

  4. Form 809 must be free of error in all critical fields. Critical fields of Form 809 are:

    • The taxpayer name and identification number (TIN),

    • All money amounts,

    • The name of the party from whom the payment was received,

    • Assessment amounts,

    • Date of issue, and

    • Signature of employee.


  5. Report critical errors for missing money or missing blank Form 809 if the error is not resolved administratively. Follow IRM 3.0.167, Losses and Shortages. Inform your manager. Report to the Office of the Inspector General for Tax Administration Situation Awareness Management Center (SAMC), and the campus Remittance Security Coordinator.

3.8.47.5.8.5  (10-01-2013)
Remittance Submitted with Form 809 and Tax Return

  1. When a Form 809 is submitted with an original tax return and a remittance, the original tax return is used as a posting document. Part-1 of the Form 809 cannot be used as a posting voucher. If the remittance processor is unsure that the return is an original document, follow IDRS Presearch procedures.

  2. Follow the steps below to process the Form 809:

    Step Action
    1 Staple Part-1 to the return and write across it: Not a posting document----DO NOT PROCESS.
    2 File Part-3 in numerical sequence for control purposes.

3.8.47.5.8.6  (10-01-2013)
Voided Form 809

  1. Remittance processors may receive a voided Form 809 with a remittance transmittal. You must make sure there is an explanation for the void, that all three parts are present and that VOID is written on all three parts. Form 809 must be stapled in reverse order, and an explanation for the void written on the reverse of Part-1. If Form 809 is not properly voided, or voided without explanation, issue Form 5919, Teller's Error Advice to inform the field office manager. A signature of the manager or electronic E-mail marked READ addressed to the manager is required to ensure the manager is aware. If required parts of the Form 809 are missing, the required response should include the missing part. When Part-2 of the form cannot be retrieved from the taxpayer, the originating field office employee will prepare a replacement receipt.
    The table below indicates the reviews necessary on the documents submitted:

    Document Action
    Original Form 809 VOID is written on the front of Parts I and 3, Parts 1 and 3 are stapled in reverse order, and, the reason for the void is indicated on the reverse of Part-1.
    Replacement Form 809 Across Parts 1, 2 and 3 is written: Attention: Replacing Receipt Serial No _. Part-2 of the Form 809 replacement receipt is attached to Part-1 and 3 of the original receipt.

    Note:

    Process Parts 1 and 3 as you would process an original Form 809.

3.8.47.5.9  (10-01-2013)
Communication with Field Offices/Key Contacts

  1. Campus liaisons for the Field Office Payment Processing Program must establish and maintain open lines of communication with key officials of area offices aligned for Form 809 controls and remittance processing. Field office employees sometimes contact the Field Office Payment Processing designated liaison regarding irrelevant issues. If contacted by a field office employee or manager regarding an issue that is national in scope, but not a Submission Processing issue, tactfully encourage the employee to discuss with his or her manager or the Headquarters program analyst for remittances for his or her operating division or function. Remittance perfection technicians must not answer technical questions regarding policy or procedure for other functional areas. Rather, tactfully refer them to their designated Headquarters analyst or manager to ensure communications and procedures are accurate, clear and complete.

  2. Telephone Log. Field Office Payment Processing designated liaisons will occasionally receive telephone calls regarding payment issues. Record all incoming telephone inquiries on the telephone log and provide to Planning and Analysis staff monthly. Planning and Analysis staff will review to determine if volume or nature of inquiries require further action. Immediately inform your manager if calls indicate a quality or systemic issue in Submission Processing. Provide local points of contact for campus issues that surface frequently, such as payment tracers.

  3. Be on the look out for quality and/or systemic problems. Inform the Headquarters Submission Processing analyst if field offices are calling about issues that are national in scope, e.g., any issue requiring an IRM change and any void In processes.
    Surface issues to the Headquarters analyst for the Field Office Payment Processing program.

  4. Key contacts are listed and updated regularly on the Field Office Payment Processing site. The link for the Field Office Payment Processing site is Field Office Payment Processing.

3.8.47.6  (10-01-2013)
Maintaining Control and Inventory of Form 809 (Official) Receipt for Payment of Taxes

  1. The IRS requires that all employees maintain strict control and inventory of Form 809 (Official) Receipt for Payment of Taxes. Precision handling and meticulous documentation of the disposition of official receipts must be maintained at all times. The strict control level is the equivalent of cash handling. Form 809 Part-3 audit files must be maintained daily. It is also necessary to maintain Form 809 inventory to service aligned field offices. Sites will maintain an inventory level of approximately six months. Title 26 USC §6314 provides that taxpayers are provided receipts upon request. There is one official IRS receipt, Form 809 Receipt for Payment of Taxes.

  2. Procedures for Handling Misdirected Form 809
    Occasionally, a field office employee may send their Form 809 to the wrong Submission Processing Center. Strict internal control of Form 809 is required in all circumstances. All Submission Processing sites receiving Form 809 must review any Form 809 received with the same care and precision as if the Form 809 was issued from their site, and receipt the funds.
    IssueForm 5919 Teller's Error Advice notice to the employee SEID. The error description is "Form 809 Sent to Wrong Submission Processing Center" . Address any other error conditions as well. Transship the Form 809 Part-3 and a copy of the error notice via overnight traceable method to the Submission Processing site that issued the Form 809.
    The Submission Processing site that issued the Form 809 will input any Form 5919 into their 809 Database or 809 Database System to ensure all errors are reflected correctly to the Form 809 serial number and listed on the Trends and Patterns Report and Late Remittance Report.

3.8.47.6.1  (10-01-2013)
Responsibilities of a Remittance Processor

  1. The responsibilities of a remittance processor concerning Form 809, (Official) Receipt for Payment of Taxes, goes beyond perfecting and processing. Strict control of official receipts must be maintained at all times. Remittance perfection technicians may be assigned to provide support to:

    • Maintain an adequate, not excessive, inventory level,

    • Ensure the correct amount of money is received,

    • Assist with quarterly Form 809 inventory verification,

    • Issue Form 809 books to authorized field employees,

    • Follow up with field employees on receipt of Form 809 books,

    • Inspect Form 809 shipments,

    • Review Form 809 for errors and issue error notices,

    • File Form 809 Part-3 memo copies daily,

    • File new inventory of books,

    • Ship closed Form 809 books to the Federal Records Center (FRC),

    • Transfer inventory to other sites,

    • File closed Form 809 books, and

    • Assist with official investigations.

3.8.47.6.2  (10-01-2013)
Responsibilities of a Remittance Processing Manager

  1. Remittance processing managers are responsible for ensuring strict control of Form 809 receipts, effective cash management, and accurate accounting and processing. Managers ensure remittance processors meet responsibilities and organizational goals.

    • Ensure the campus maintains an adequate, not excessive or insufficient inventory level,

    • Brief remittance processors on accountability and the importance of accuracy and timeliness, that correct amounts of money are received,

    • Initiate action to ensure quarterly inventory verification and documentation is completed by a manager without responsibility for Form 809,

    • Ensure all monthly Trends and Patterns and Late Remittance reports are distributed timely and to the appropriate management officials as required,

    • Conduct and document management reviews of all Field Office Payment Processing program work to ensure adherence to IRM 3.8.47 guidelines,

    • Ensure adherence to all security requirements in IRMs 3.8.45 and 3.8.47. Managers are responsible for internal controls, and

    • Report immediately all potential losses and shortages to the TIGTA Office of Investigations at 800–366–4484, including losses of personally identifiable information, to the campus Remittance Security Coordinator and Computer Security Incident ResponseCenter at 866-216-4809..

  2. Management reviews by the supervisor must be conducted and documented at least annually to ensure all aspects of the Field Office Payment Processing program are in adherence to IRM 3.8.47.

    1. Review Form 809 books assigned to employees.

    2. Review Form 3210 transmittals to ensure each remittance is marked with a distinctive check mark , signed and are returned timely.

    3. Review Form 795 to ensure remittances are marked with a distinctive check mark, signed and returned timely.

    4. Review Teller's Error Response Required Report weekly to ensure timely follow up on overdue responses.


  3. Management reviews by the supervisor must be conducted and documented at least quarterly to ensure adherence to internal controls for the security of remittances and returned refund checks transshipped out of the campus.

3.8.47.6.3  (10-01-2013)
Field Office Payment Processing Program Campus Designated Liaison

  1. Each campus will designate a key contact to establish and maintain open lines of communication with key officials of area offices aligned for Form 809 controls and collected remittances. The campus liaison will communicate with field offices as follows:

    1. Misdirected Form 809
      Rarely, Form 809 may be sent to the wrong campus. The liaison communicates with other campuses to ensure Form 809 is routed to the correct site.

    2. Annual Reconciliation of Form 809 Receipts
      Campus liaisons communicate with field office officials to update organizational information, distribute annual lists, and resolve any discrepancies.

    3. Remittance Transmittals
      If remittance transmittals require research, the manager may designate the campus liaison to research or ensure transmittals are returned timely.

    4. Communications Regarding Current Remittance Issues
      Conference calls may be hosted regularly during the peak-payment processing periods and other times. It may be necessary to communicate other remittance issues.

3.8.47.6.4  (10-01-2013)
Ordering Form 809

  1. Form 809 will be printed bi-annually and shipped directly to campuses. All Form 809 printing must be approved by Headquarters Service Center Accounting and Deposit and Collection Policy Analysts.

  2. Austin, Cincinnati, Fresno, Kansas City and Ogden Submission Processing Centers service Form 809 requests for field offices.

3.8.47.6.5  (10-01-2013)
Receiving Form 809 Book Inventory

  1. Submission Processing sites must gain approval by serial number from the respective Operations Manager, Receipt and Control to borrow or transfer unissued Form 809 book inventory. A remittance perfection technician initiates the request to transfer inventory in the E-Trak 809 Database System. Teller role has this capability.


  2. The Field Office Payment Processing manager must identify remittance perfection technicians or other employees to receive and inspect the Form 809 inventory. All employees receiving and inspecting Form 809 inventory must have RSTRK with Definer R activated on their IDRS profiles before receiving and verifying the inventory.
    The manager will take the following steps:

    Step Actions for Field Office Payment Processing Manager
    1 Identify remittance perfection technicians (or other employees) to verify and inspect the Form 809 books.
    2 Review the IDRS profile of the employee to ensure RSTRK with Definer R has been activated and that the employee does not have sensitive command codes in their IDRS profile.
    3 Direct the assigned employees to input online 5081 for access to the E-Trak 809 Database System, if they do not have access already. Provide a sanitized copy of their IDRS profile showing RSTRK with Definer R to the HQ System Administrator for the E-Trak 809 Database System.
    4 Assign a range of Form 809 book serial numbers to the employees identified for them to complete the inspection and then document the inspection in the E-Trak 809 Database system. You will have received a listing of serial numbers from the Media and Publications printing specialist prior to shipment.
    5 If there are any defects identified by the assigned employees, then you must also inspect the book and follow guidance from Media and Publications printing specialist to have the book reprinted. If reprinting, then void all receipts in the defective book.

  3. Remittance perfection technicians assigned to receive and inspect new Form 809 book shipments will take the following steps:

    Step Action
    1 Compare and verify that each Form 809 book serial number is the same as listed on the transmittal document.
    2 Compare and verify that each Form 809 book serial number is the same as the serial numbers provided by the Media and Publications printing specialist assigned.
    3 Inspect each Form 809 book to ensure that all four parts of all 50 receipts are included and that there are no defects.
    4 You must sign on to the E-Trak 809 Database System in the Inspector Role and input the serial numbers of books received, being careful to indicate if there are any defects. If there are no defects, then save your work and sign off. If there are defects, then refer to Step 5 below.
    5 If any part of the Form 809 book you are inspecting is defective, then annotate the book is defective and show the defect to the Field Office Payment Processing manager.
    6 Adhere to Media and Publications directions regarding the return of Form 809 books to the Government Printing Office or vendor.
    7 Store and lock blank Form 809 books in numerical sequence in the security (Fireking) cabinets provided.

3.8.47.6.6  (03-21-2013)
Control Inventory of Form 809 Books

  1. Accountability and control of unissued Form 809 receipt books should be assigned to one individual with appropriate backup in each site. RSTRK with Definer R must be activated on the employee IDRS profile before an employee is assigned to control blank Forms 809.

  2. Remittance processors responsible for inventory control of unissued Form 809 receipt books and issuance of Form 809 books to other employees may not issue Form 809 receipts to taxpayers.

  3. Transference of unissued Form 809 inventory is allowed only when approved by Operations Managers, Receipt and Control Operations, for each site by serial number.

  4. Transference and receipt of unissued inventory must be documented by name, date, and serial number.

  5. Inspection of Forms 809 must be conducted and documented by serial number and name of inspecting employee within 24 hours of receipt of unissued Form 809 inventory.

  6. Verification of unissued Form 809 must be done at least once at the end of each quarter within 30 days following the end of each quarter (April 1 through April 30 for the March quarter; July 1 through July 30 for the June quarter; October 1 through October 30 for the September quarter; January 1 through January 30 for the December quarter).

  7. The Field Office Payment Processing manager will provide a report of Form 809 book on-hand inventory to the Media and Publications Management Analyst Carolyn.Blanton@irs.gov as requested by the 5th day following the end of the month:
    Column A Number of unissued Form 809 books in inventory (Balance On Hand)
    Column B Number of Form 809 books issued to employees (Monthly Customer Issues)
    Column C Number of Form 809 books transferred (to another Submission Processing Center (SPC)).
    Column D Number of Form 809 books received from a vendor or another SPC

3.8.47.6.7  (10-01-2013)
Authorization for Issuance of Form 809 to Employees

  1. The employee's supervisor (or authorized official) will prepare a memorandum authorizing a new user to receive a Form 809 book. You must have written authorization from an official with authority to approve issuance of a Form 809 book before issuing a receipt book. When requesting issuance of a Form 809 book, managers must identify the operating division, and management hierarchy to the group level, SEID or unique identifier number, addresses and phone numbers. This is necessary to ensure the information is on file if accountable officials have to be contacted.

  2. Generally, only employees reporting to a first-level manager may be issued a Form 809 book. An exception exists in the Field Assistance organization, that allows Form 809 book issuance to a group manager with authorization from the Area Director.

  3. A Form 809 book is assigned for the exclusive use of the intended employee. The book is not transferable. In other words, when the Submission Processing Center issues a Form 809 book to an authorized employee, determine the serial number of the book to be issued.

  4. File the authorization for issuance of the Form 809 book in the front of the respective Form 809 Part-3 audit file for the same book.

  5. Supervisors may not approve transfer of an assigned Form 809 book to another employee. For example, if John Doe is assigned Form 809 book with serial number 123456-90, and retires, the book must be returned to the issuing Submission Processing Center. The supervisor may not transfer the book to Mary Smith, who was hired to replace John Doe.


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