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 Forms 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 Forms 5919 Teller's Error Advice using the 809 Database, 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.

Forms 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.

Forms 795/795A Daily Report of Collection Activity/(ICS) Remittance and Return Report 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), the Form 809 should be treated as if received with a Form 795/795A. All internal controls apply regardless of how official receipts may be received.

Sort Forms 795/795A 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.

Revenue officers will annotate COMPOSITE 941 at the top of the respective Form 941, and highlight the annotation. When Field Office Payment Processing units at Cincinnati and Ogden receive a Form 795A (CG) with COMPOSITE 941, they will perform a SEPARATE SORT of COMPOSITE 941s before routing for processing. Forms 941 will be sorted as:
COMPOSITE 941 (Form 941 with 941-M)
Form 941 without 941-M.

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.

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.

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

The Service requires cash be converted within 24 hours of receipt. Remittance processors will issue Forms 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.

Remittance processors will cite as late any remittance, except a misdirected remittance, that is received later than 3 business days from the date the IRS received the funds. Field Office remittance packages originating outside the continental United States will be cited as late if received later than 7 business days from the date the IRS received the funds. Submission Processing recognizes this exception. For example, consider a cash payment of $385.00 received in a TAC office on Monday, January 27th. ITAS (and all other employees) have 24 hours to convert cash to a money order or cashier's check and mail. The remittance should be mailed on the day of receipt or as soon as possible the next business day. If the day of receipt is Monday, the cash should be converted into a money order or cashier's check and placed in the overnight package by Wednesday, and received in the Submission Processing site on Thursday. If the remittance was received on Friday, January 31st or later, it is late, and issuance of Form 5919, Teller's Error Advice in the 809 Database, to the appropriate field office group manager is required. This criteria applies even if the remittance was not cash, and there was not a Form 809 involved. Input into the 809 Database as a non-Form 809 user. See 809 Database User Guide for instructions.

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 or Department of the Treasury Headquarters offices, in error. Issuance of late error notices are not required for misdirected remittances.

Application of the timeliness criteria to remittances is designed to identify critical conditions and security risks in balance with cash management goals. In order to keep the process productive, simply count 3 business days, (count 7 business days if originating outside the continental U.S.) not including the day the remittance is received, to determine if timely. Some non-cash remittances may be one day late, and a 5919 is not issued. This does not change the lawful requirement for field office employees. See the example below for the general application of timeliness to field office collected remittances.

Field offices and officials, even revenue officers who are on field calls or Flexiplace now use overnight traceable method for sending remittances. Therefore, remittance processors will cite as late any remittance that is received later than 3 business days from the date the officer collected the funds. If the remittance package was not sent by overnight traceable method. Revenue officers have been directed to annotate "FIELD" or "FLEXIPLACE" in red at the top of their Form 795/795A. The timeliness criteria of 5 working days then applies to allow mailing time. The timeliness for cash conversion remains 24 hours, or one workday of receipt. The 3–day general application of timeliness criteria outlined applies if the Form 795/795A is not marked "FIELD" or "FLEXIPLACE" .

All payments, regardless of the collecting function, must be transmitted to the Submission Processing Center via Forms 795/795A, Daily Report of Collection Activity, or Forms 3210, Document Transmittal. All Forms 809 must be transmitted via Form 795/795A, Daily Report of Collection Activity, without exception. Cash remittances must be converted to check or money order (within 24 hours of receipt from taxpayer) before sending for processing.

One of the Service's Balanced Measures is Deposit Timeliness. In order to support this balanced measure, remittance perfection technicians cite remittances collected in field offices as late, when applicable by issuing Form 5919 Teller's Error Advice, using the 809 Database. If the late remittance is from an area not in the 809 Database, the local database administrator must create the record. The target for the Deposit Timeliness balanced measure for FY2009 was $282 per million dollars of deposits. (At the time of this writing, the FY2010 targets had not been announced.) Late remittance reports are reflect delayed cash remittances.

An electronic copy (or snapshot copy) of the late remittance report must be provided by the 5th workday following the end of the month to the Area Director (or their designee) of aligned area offices whenever the office fails to meet the national target timeliness goal. Provide a cc copy to edna.p.banks@irs.gov. Ogden and Cincinnati are requested to provide a copy of Collection field function late remittance reports to lani.b.andrew@irs.gov .

Provide late remittance reports upon request of field office management or Headquarters Submission Processing. Field office management may have late remittance reports for their respective areas.

If errors are discovered on late remittance reports after distribution to management officials, a corrected report must be re-issued to the same distribution within 3 business days of discovering the error.

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, or the Headquarters analyst, who is Brenda S. Jackson, Supply Management Specialist in Dallas, Texas. Brenda can be reached at (972) 308-7074. Add a statement in the comments section of Form 5919 and attach a narrative statement to the Late Remittance report to indicate the remittance was delayed by the overnight mail service provider. Lost packages containing personally identifiable information (PII), such as SSNs must also be reported to *CSIRC@irs.gov

Ogden and Cincinnati are requested to cc lani.b.andrew@irs.gov on all late remittance reports issued to Collection areas in FY2010.

If you discover critical errors (i.e. late remittances, incorrect money amounts, or money amount on posting document does not agree with remittance dollar money, remittances not included, a Form 809 transmitted via 3210 in error) on a field office remittance transmittal package, issue Form 5919 Teller's Error Advice (response required) to the appropriate field office (first level) manager. It may be necessary to access the IRS Discovery Directory to determine the manager of the field office if the manager is not listed on the transmittal document. Critical errors are defined as those errors associated with waste, fraud, abuse, and include:

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

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 3.13.62 , Media Transport and Control for general Form 3210 handling on non-remittance items.

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).
Cincinnati and Ogden service SB/SE Collection Field function and Examination field offices.
Ogden services LMSB and TE/GE field office functions.
Cincinnati and Ogden service any field offices routing payments with original BMF tax returns.
Kansas City is the designated research and processing site for misdirected remittances into Headquarters offices in the Atlanta and Washington DC metropolitan areas beginning October 1, 2009.

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

The research and deposit servicing site for Headquarters IRS and Department of the Treasury administrative offices that receive misdirected remittances has not been determined for FY2010 at the time of this writing. Misdirected remittances are those that are forwarded to an office that is not under a field office function or depositing campus. During FY2009, misdirected remittances were serviced by the Atlanta campus.

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 LMSB Division and BMF International.

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 Chapter 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. Field office employees must provide public addresses listed on tax form instructions to taxpayers.

Receipting Form 795/795A 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– 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 (Response Required) 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.

The following table indicates the steps in this process.

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 possible the next business day.

Some TACs deposit cash payments and send only noncash remittances to the campuses for processing. TACs that deposit cash will provide additional items in the daily overnight remittance package for Campus Accounting. Employees will have a separate Form 795 for cash items deposited, in addition to the Form 795 for non-cash remittances. The following items will be included:

TACs 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.

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. See IRM 3.0.167 Losses and Shortages. Critical errors are defined as those errors that may indicate potential waste, fraud, or embezzlement, such as late remittances, late cash conversion, incorrect money amounts or money amounts out of balance or do not agree with amount listed on the posting document.

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

Non-critical errors may be corrected in green. Annotate the corrective actions taken in green on Form 795/795A. 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.

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.

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.

Occasionally, a Trend and Pattern Report may have an error. If error(s) are discovered after distribution of the report, re-issue a corrected report to the same management audience within 3 business days of discovery.

You may receive Form 2290 Heavy Vehicle Use Tax Return with a Form 795/795A, 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.

Verify the following:

The Integrated Collection System (ICS) contains case information, automated payment posting vouchers, and Form 795/795A 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/ .

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.

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.

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 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.

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

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 1-800-464-4464.

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.

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 the approved pseudonym in lieu of the official name); SEID or unique identifier number, addresses and names of territory and area managers names, addresses, email addresses and telephone numbers.

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.

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

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 managers are aware and/or to retrieve the required remittance or information. If no information, document, or remittance is needed, a return email marked READ is sufficient.

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.

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.

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. These are known as critical errors. Remittance perfection technicians will issue RESPONSE REQUIRED Form 5919, Teller's Error Advice. File a copy of Forms 5919 issued for official receipts daily in the official audit file.

Forms 5919 that require responses from the field office manager will be maintained electronically if there are daily backups performed automatically. Remittance processors issuing Forms 5919 must check the centralized control file on the day after a response is due. At least once every 5 workdays, the file should be checked routinely to ensure responses are current. Generate the Teller Error Advice Missing Response Report at least every 5 workdays. The report provides a listing of advice notices that have not been closed.

Timeframes for issuance and return of Form 5919: Remittance perfection technicians must issue Form 5919 electronically from the 809 Database 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 email, 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 5919 to the Group Manager of the employee making the error. Use the 809 Database to issue Forms 5919 as a snapshot file via email. If issuing Forms 5919 via email, you may shorten the required response time. You may also flag the electronic Form 5919 email message for READ. When using the electronic version, a copy of an email 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 email to send any taxpayer information.

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 a second notice is not necessary. If there are multiple forms 5919 without responses, or if blatant, habitual disregard for internal controls becomes apparent, inform your manager. Managers should send a listing of outstanding issues to the territory manager or department manager with a cover memorandum from Operations Manager, Receipt and Control, or initiate discussions with field office management. Managers must contact the territory manager or department manager by phone if 5919s for critical errors are not acknowledged at territory manager or department manager level.

Form 809 must be free of error in all critical fields. Errors in critical fields are those errors associated with potential fraud. They are:

Critical errors for missing money must also be treated as shortages. Follow IRM 3.0.167 Losses and Shortages. Contact the Office of the Inspector General for Tax Administration and remittance security coordinator.

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.

Follow the steps below to process the Form 809:

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 email 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: