3.17.10  Dishonored Check File (DCF) and Unidentified Remittance File (URF) (Cont. 1)

3.17.10.2 
Dishonored Check File (DCF)

3.17.10.2.17  (01-01-2013)
Researching the DCF

  1. The CC BDINQ format displays a specific record on the DCF. At times you may need to see how a check was added to the DCF or if a record has been closed. On splits, you may wish to make certain that you closed the case correctly. Personnel outside the unit may use CC BDINQ to ensure that a payment to be refunded has not been dishonored.

  2. Using CC BDINQ, the DCF can be researched by name control, DCN, or money amount. However, search of the file is narrowed by using as many of the three elements as possible. Exhibit 3.17.10-7

3.17.10.2.18  (07-26-2013)
Initial Processing of Form 2287(CG)

  1. Associating the DC Checks to the Form 2287(CG) and the DC Worksheet—After checks have been debited on IDRS with CC BDAPL, an IDRS notice will generate. The notice is printed on Form 2287(CG). This Form 2287(CG) will be delivered to the DCU the next working day after the input is made. The date printed on the generated Form 2287(CG) is that of the third business day after the CC BDAPL input; therefore, all pre-mail activity, including quality review, must be completed by COB that third business day.

    Note:

    If the printed Form 2287s are not received the next working day, print them from Control D. The Control D report name is DISHONORED CHK FILES and the job name is DCF0701.

  2. Match the check to the Form 2287(CG) and the worksheet; pull the worksheet, the notice and check. Also review for received date, tax period, penalties, etc.

  3. Return check and separate Form 2287(CG)s to the taxpayer. If the payment was for multiple modules, staple all of the parts 2 together and attach a Form 8269 indicating the total amount due and request that all of the parts 2 be returned with the replacement remittance. Staple the check to the parts 1. Figure 3.17.10-21. At local option, a cover Form 2287(CG) may be prepared to indicate to the taxpayer the total amount due.

    Figure 3.17.10-21

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 2287(CG) Notice of Check Not Accepted by Bank

  4. Abating Penalties-If you find a penalty has been assessed when one is not required, abate the penalty by using CC REQ54 which generates the ADJ54 format. The incorrect penalty must be posted before it can be abated.

  5. Assessing Penalties-If no penalty was assessed and a penalty is justified, apply a penalty and retype Form 2287(CG).

  6. Erasing the IRS Endorsement-Before you mail checks and Form 2287(CG), erase the IRS endorsement and stamp the date of the debit voucher inside the erased endorsement stamp. Never erase endorsements on checks that can be redeposited.

  7. Resolving an Erroneous Application-If the debit was applied to the wrong taxpayer, send the case to Accounts Management or other designated areas for correction.

  8. If research or the check reveals a different taxpayer address than that shown on CC INOLE or ENMOD, include Form 8822, Change of Address, For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns, or Form 8822B, Business, with the dishonored check and Form 2287(CG) to be sent to the taxpayer.

    Note:

    If the address on Master File is incomplete and it is an obvious error, or if the address on the check is a prior address, do not send Form 8822/8822B to the taxpayer.

  9. Take the check, notice, other inserts to be sent to the taxpayer, and worksheet to quality assurance for review.

  10. Filing the Dishonored Check Worksheets-File the DC worksheets in alphabetical order. At the discretion of the Director, the worksheets may be filed by TIN within the Julian Date week indicated by the DLN. Periodically dispose of the file items in accordance with IRM 1.15.29, Records Control Schedule for Service Center Operations, Item #157.

  11. Mailing the Forms 2287(CG) and the Dishonored Checks-Send the Forms 2287(CG) and the dishonored checks and any inserts to Facilities for mailing. The 2287(CG) and the dishonored check must be mailed to the taxpayer within 3 working days from the date of the debit.

  12. Mailing Checks and Notices for Forms 941-M and 720–M-When a check has a note attached indicating a 941–M or a 720–M, pull the check and the Form 2287(CG). Using Form 3210, mail the check and Form 2287(CG) to the area office Collection function for timely collection of the account.

  13. Typing Form 2287(CG) for misplaced notices-As the checks and the Form 2287(CG) notices are being associated and there is a worksheet indicating the case is closed but no 2287(CG) notice, go to IDRS using CC BDINQ to see if this case has been closed. If the case has been closed, type a Form 2287(CG) notice and mail the check and the Form 2287(CG) to the taxpayer. This should be checked each day to avoid missing the 3 day limit on mailing the DC and the 2287(CG) notice to the taxpayer. If the case has not been closed, give the worksheet to the work leader to be completed.

    Note:

    A pdf fillable Form 2287(CG) is located on the Publishing web site at http://publish.no.irs.gov/cat12.cgi?request=CAT2&itemtyp=F&itemb=2287&items=%28CG%20.

  14. There may be some taxpayer correspondence received after issuance of Form 2287(CG). Procedures should be developed to ensure that proper adjustments are made to the taxpayer's account. DC worksheets or drop listings may be useful in the research process.

  15. When correspondence concerning balance due accounts is received from a taxpayer stating that he/she refuses to pay, will pay the bill in the future, is unable to pay, or wishes to pay in installments, route the case to the Compliance Services Collection Operations.

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  17. If the request for penalty abatement is accepted, use CC REQ54 to input TC 281 as directed in IRM 2.4.16, IDRS Terminal Input. Be sure to properly notify the taxpayer of our response to his request.

  18. If the request for penalty abatement is denied, send Letter 854C to the taxpayer giving an explanation for not abating the penalty and input TC 290 with .00 as directed in IRM 20.1.1, Penalty Relief.

3.17.10.2.18.1  (01-01-2014)
Processing Undelivered Notices (Forms 2287(CG) or 3699)

  1. Within 30 days of receiving undelivered notices, these items must be researched again to see if a repayment has been made. Research IDRS for more current name and address. If a check address is different from old ENMOD address, use the check address to return check and 2287(CG) notice to new address.

  2. If repayment has been made, send check and Form 3699, Return of Documents to Taxpayer, to the new address. If penalty is due, send Form 2287(CG) for penalty amount only.

  3. If no new address can be found, file undelivered checks and notices in the undelivered file. Periodically dispose of the file items in accordance with IRM 1.15.29, Records Control Schedule for Service Center Operations.

3.17.10.2.18.2  (01-01-2013)
Assessing a Dishonored Check Penalty

  1. Per IRC Section 6657, a penalty shall be imposed if any tax is paid with a bad check. The penalty varies according to the amount of the bad check:

    FROM TO PENALTY
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    $5.00 $24.99 Penalty equal to amount of remittance
    $25.00 $1,249.99 Penalty charge is $25.00
    $1,250.00 And over Penalty charge is 2% of the amount of the remittance

    Note:

    Rate for checks received after May 25, 2007.

  2. In addition to the causes which are reasonable as described in IRM 20.1, Penalty Handbook, the following should be accepted as reasonable cause when determining whether a dishonored check penalty should be assessed.

    1. The check was not honored because of the death of the taxpayer after the date the check was issued.

    2. The check showed an incorrect date or payee.

    3. The amount shown in figures and in words on the check differ.

    4. The check had no signature.

    5. The check did not reflect the name and address of the bank on which it was drawn.

    6. The check was prepared with multiple signature lines and at least one, but not all, signatures appear. (Return the check to the taxpayer for additional signature(s).)

    7. There was a failure to sign voucher receipts or noncompliance with other requirements of the bank on which the check is drawn. Taxpayers who frequently submit incomplete or improperly drawn checks should be penalized.

    8. The check is a third party check involved in cash register seizure by Collection.

    9. The financial institution which issued the check or money order is now defunct.

    10. There is a Combat Zone indicator of "1" (active).

    11. The check is from a federal agency (US Treasury check) or has an employment code of "F" .

  3. No penalty should be assessed when a taxpayer's funds are tied up in a financial institution which is not fully operational. The following instructions should be followed:

    1. Dishonored checks will be held in the Dishonored Check Unit until they can be redeposited or returned to the taxpayer for substitute payment. Credit will not be reversed and the bad check penalty will not be charged at this time.

    2. Disposition of the check will be made upon official notification that the affected financial institution is either fully operational or defunct.

    3. If the financial institution reopens, a check stamped "Unable to present/process at this time" should be redeposited. A check stamped "Return to Maker" must be returned to the taxpayer and a substitute remittance requested.

    4. If the financial institution does not reopen, use the following procedures to debit the taxpayer's account, return the check to the taxpayer, and insure that no penalty is assessed.

    5. If no penalty should be assessed, enter $.00 in the penalty box of Form 8252.

    6. Debit the taxpayer's account, being certain to input .00 on line 5 of CC BDAPL to ensure that no penalty is automatically computed.

    7. When the Form 2287(CG) is generated, prepare Form 8290, Returned Check Repayment Notice, taking care to enter the same date as that on the Form 2287(CG). Figure 3.17.10-22.

      Figure 3.17.10-22

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Form 8290, Returned Check Repayment Notice

    8. Send check, Form 2287(CG) and Form 8290 to the taxpayer.

    9. Record action taken in "Remarks" section of the Form 8252.

      Note:

      A pdf fillable Form 8290 is located on the Publishing web site at http://publish.no.irs.gov/cat12.cgi?request=CAT2&itemtyp=F&itemb=8290&items=.

  4. Applying Penalties for Dishonored Checks

    1. On split remittances of $1,249.99 and under, apply the penalty to the largest money amount. Apply $.00 on the smaller amounts of money. Let the computer generate a $25.00 penalty on the largest money amount.

    2. On split remittances of $1,250.00 and over, you will figure the penalty and apply the penalty to the largest money amount. For example, if the check is for $1,600.00 and has 3 parts—on the 2 smaller amounts put $.00. On the largest money amount, apply $32.00. If you do not apply the correct penalty, the computer will generate only the penalty for the amount of the one document. The penalty must cover the entire total of the check.

    3. On split remittance cases, send the check, Forms 2287(CG) and Form 8269 Notice of Dishonored Check for More than One Tax Form, to the taxpayer. Figure 3.17.10-23.

    Note:

    PDF fillable Form 8269 will calculate Amount of check plus penalty equals Total due with Form 2287(C). When you enter amount of check and penalty in appropriate blocks the Total due block will calculate automatically.

    Figure 3.17.10-23

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    Form 8269, Notice of Dishonored Check for More than One Tax Form

3.17.10.2.19  (01-01-2013)
Dishonored Check Computer-Generated Reports

  1. DCF01-Dishonored Check File Analysis

    1. Daily inventory lists prior balance, new accounts added, adjustments, accounts closed and new balance by both count and dollar amount for each area processed by the campus.

    2. Report also includes summary for the campus. Figure 3.17.10-24

    Figure 3.17.10-24

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    DCF01- DCF Analysis

  2. DCF03–Transaction Register

    1. Non-Master File Applications from the DCF lists DC control number, taxpayer's name and address, TIN, tax period, 23C date, form number, employee number and other information, including "Remarks" . The report ends with a campus summary showing counts and amounts for each transaction code for each area reporting activity. Figure 3.17.10-25

      Figure 3.17.10-25

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      DCF03- Transaction Register

    2. The 1710 Account Transaction Register is a daily report that shows the dishonored check control number and amount for each item added to the DCF by area . A later page summarizes each area's totals by count and dollar amount. Figure 3.17.10-26.

      Figure 3.17.10-26

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      DCF03- 1710 Account Transaction Register

    3. The 1710 Account Transaction Register is a daily report that lists restricted applications (CC BDOUT) from the DCF by type (for example, D, I) showing the DC control number, amount and employee number. A later page of this report summarizes activity for the various types of applications for each area processed by the campus. Figure 3.17.10-27.

    Figure 3.17.10-27

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    DCF03- 1710 Account Transaction Register (Restricted Application- CC BDOUT)

  3. DCF05—DCF Applications for IMF/BMF/IRAF—Controls

    1. Daily report lists completed BDAPL "Ms" in DCN order, and by money amount.

    2. Summary breaks down total records input by IMF, BMF and IRAF showing the numbers of the records input and applications updated with money amounts applied. Figure 3.17.10-28.

    Figure 3.17.10-28

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    DCF05- DCF Applications for IMF/BMF/IRAF

  4. DCF09-Dishonored Checks Aged 15 Days List

    1. Report shows DC control number, name control, original amount, balance amount, entry date, received date, age of item in number of days and employee assignment number.

    2. The first report is in check age order. The second section is in employee number order.

    3. Summary on later page lists count and balance amount of cases by area with the campus total of each. Figure 3.17.10-29

      Figure 3.17.10-29

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      DCF09- Dishonored Checks Aged 15 Days List

    4. At campus option, DCF09 sorted by assignment code may be generated to aid in controlling workload.

  5. DCF50-Monthly Dishonored Check File Analysis summarizes activity for the fiscal month in the same format shown in (1) above.

  6. DCF54-Dishonored Check Records Dropped from the File

    1. Part 1 allows research of cases dropped from the DCF alphabetically by taxpayer's name. Figure 3.17.10-30. Dropped Lists are viewable on Control D.

      Refer to IRM 1.15.29, Records Control Schedule for Submissions Processing Campus Records (Job No. N1-58-78-4, Item 273).

      Figure 3.17.10-30

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      DCF54- Dishonored Checks Dropped From the File - Part I (by Taxpayer Name)

    2. Dropped List 2 allows research of dropped cases by DCN. Figure 3.17.10-31. Dropped Lists are viewable on Control D.

      Refer to IRM 1.15.29, Records Control Schedule for Submissions Processing Campus Records (Job No. N1-58-78-4, Item 273).

    Figure 3.17.10-31

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    DCF54- Dishonored Checks Dropped From the File - Part 2 (by DCN)

  7. Upon receipt, reports should be balanced to employees' work records. Discrepancies should be resolved and reported to the manager and/or the RRACS Data Base Administrator.

  8. DCF60- Monthly Dishonored Check File Analysis. Figure 3.17.10-32

    1. Monthly inventory summarizes activity for the fiscal month in the same format used for the DCF50.

    2. A separate report is generated for each campus and includes a National roll up.

    3. The report is available at the Control D web site. Figure 3.17.10-32.

    Figure 3.17.10-32

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    DCF60- DCF Monthly Dishonored Check File Analysis

3.17.10.2.20  (01-01-2013)
Reporting of Inventories

  1. Production data for the weekly WP&C Managers Report should match the staff hour reporting period ending Friday or Saturday as directed in IRM 3.30.50, Performance Evaluation Reporting System.

  2. Monthly computer-generated reports showing campus totals for dishonored checks (DCF50) are to be used as the source data for input to the MISTLE report. Daily computer generated reports (DCF) should be used as the source data for reporting to the weekly MISTLE report.

  3. A report must be submitted showing the number of aged dishonored check cases. The report must be submitted monthly, January through December. In addition to the monthly reporting, weekly reports must be submitted beginning the first week in March through the end of May. The report should include the following:

    1. The total number of ALL dishonored checks in the DCF inventory as of the end of the reporting period. This should include bank problems and manually deposited checks.

    2. A count of ALL cases more than 21 days old by age: cases 22–65 days old, and 66 or more days old. This should include bank problems and manually deposited checks. As of January 1 ,2002, these items are no longer to be excluded but may be explained in comments.

    3. Comments to explain why aged cases cannot be closed; an explanation of why inventory levels remain consistently high, if applicable; and the corrective actions being taken to resolve aged cases.

    4. Monthly reports should reflect the inventory as of the last day of the month. Weekly reports should reflect the inventory as of close of business Thursday. As of January 1, 2002, the above aged information is reported to the MISTLE eliminating the need for a paper report.

3.17.10.3  (01-01-2013)
Unidentified Remittance File (URF)

  1. The Unidentified Remittance File (URF) is a separate file within IDRS containing all remittances received that cannot be immediately identified, applied or associated to a specific taxpayer and/or tax period.

  2. Valid CC URADD cases must be added to the URF within five workdays of receipt of Form 2424, Account Adjustment Voucher. This procedure includes any action necessary to remove the credit from its previous location. IRM 3.17.10.3.3., (Entering UR Cases on IDRS).

  3. All CC URADD cases must be thoroughly researched to the standard outlined in IRM 3.17.10 (Initial Processing by UR Technicians). Substantial efforts to attain this research standard must be initiated within two workdays of their addition to the URF. ( IRM 3.17.10.3.2 (Receiving Unidentified Remittance Cases) for exceptions.)

  4. Valid CC URAPL cases must be applied from the URF within one workday of receipt of Form 8765, IDRS Control File Credit Application.

3.17.10.3.1  (01-01-2013)
Overview

  1. Each record within the URF contains the Unidentified Remittance (UR) control number and amount of remittance. Other record elements may include type of remittance, received date, check or money order number, telephone number, bank name, taxpayer's name and address, taxpayer's identifying number (if known), and available payment and follow-up information.

  2. URF provides a rapid research tool for payment tracing, which is available to all areas serviced by the campus. It provides registers and listings for controlling and balancing. Since the remittance is under the control of IDRS while it is unidentified, the unidentified portion of the Service Center Control File (SCCF) is no longer required. However, once the payment is applied, the account falls under regular SCCF control.

  3. Revenue Receipts information will be provided on a monthly basis from the monthly URF Analysis. ( IRM 3.17.10.3.15 (Unidentified Remittance Computer-Generated Reports) for description of available URF computer reports.) The balancing operations will be performed by the Accounting Balancing function or by designated personnel within the Unidentified Remittance function. ( IRM 3.17.10.3.16 (Balancing Computer -Generated Reports) for balancing within the function.)

  4. UR records are established only by the Campus Cashier and Unidentified Remittance functions. There are a number of different types of Unidentified Cases: cases from Cashier function, unknown, Non-Master File, Rejects, Statutes and Unpostables.

  5. Using CC URAPL, application of UR credits may be made only by UR function personnel and only to the module or for the purpose indicated by the taxpayer. Personnel outside the UR function may complete Form 8765, IDRS Control File Application, to request application from the URF.

  6. Correction of erroneous records using CC UROUT and URENT are restricted to the terminals located in the Cashier and UR functions. Instructions on the operation of IDRS and use of the CCs are in IRM 2.4, IDRS Terminal Input.

  7. The following steps must be taken in Receipt and Control Operations before a remittance is added to the URF:

    1. Perform IDRS research to identify appropriate taxpayer account.

    2. If IDRS is unavailable, retain work until research can be accomplished. Photocopy front and back of original for later research, depositing the original remittance.

    3. Entity Control tax examiner will assign Employer Identification Numbers to BMF cases needing them.

    4. If remittance cannot be identified through IDRS research and/or telephone call per IRM 3.8.45.10.1 , request master file transcript for use by the UR function.

  8. The IDRS URF contains four separate files on disk. They are the UR Name File, UR Amount File, UR TIN File and UR Control Number File. (NOTE: The UR TIN File stores data but cannot be used to retrieve information.) The paper file will contain history sheet, the document, correspondence, photocopy of remittance, etc. Subsequent IDRS activity with the URF is automatically recorded by the computer, and, if appropriate, balance amounts are also adjusted, thus becoming the official URF. A record will be removed from the open file at the time the case is closed on IDRS.

  9. Route closed cases to Files in folders other than IDRS source document folders. Frequency and manner of transfer may be arranged locally between the UR function and Files to ensure that records are retained as described in item 240 of IRM 1.15.29, Records Control Schedule for Service Center Operations.

3.17.10.3.1.1  (01-01-2013)
Unidentified Remittance Case File

  1. The case file documents the attempts to resolve the identity of the credit to be applied to the taxpayer's account. The case file may include:

    • Copy of Form 2424

    • Copy of Form 3244

    • Copy of Form 2158

    • Copy of Form 8765

    • Copy of taxpayer's check (front/back) or RTR print

    • Transcript of the taxpayer's account

    • Historical record of attempts to resolve identity

3.17.10.3.1.2  (01-01-2013)
Trace ID Number for Tracking Credits

  1. As of January 1, 2008, all credits/payments were assigned a Trace ID Number for tracking purposes. The Custodial Detail Data Base (CDDB) was established with the EFTPS payments January 1, 2006. CDDB will track all individual payments that comprise a Deposit Ticket, balancing the individual transactions against the Deposit Ticket totals, which have been entered in the RRACS General Ledger. The Trace ID Number allows all credits/payments to be identified and added to the CDDB.

    1. For systems that create a Deposit Ticket, a 14 character Trace ID Number will be generated and printed on the Deposit Ticket.

    2. Deposit Tickets manually created will receive a Trace ID Number through BBTS.

  2. The format for a Trace ID Number that is to be included in all Deposit Tickets (14 digits) and stamped on all Payment Transaction records (20 digits) is:

    Trace ID for Deposit Ticket (first 14 characters)
    Parts Characters Definition
    Site ID NN SP Campus FLC or other Site ID
    System ID NN The values are identified as follows:
    01 - EFTPS
    02 - ISRP Payment Transactions
    05 - Lockbox Bank Transactions
    10 - SITLP Levy Payments
    15 - Receipt & Control Manual Deposits
    20 - RRACS DCF Debit Voucher (DV)
    25 - Accounting Deposit Ticket and DV
    30 - FTD Deposit Ticket/Debit Voucher
    35 - IDRS IA User Fee Sweep
    40 - Automated Insolvency Manual DT
    45 - Automated Offer in Compromise Manual DT
    50 - ITIN
    55 - Field Assistance (Share) Function, Taxpayer Assistance Center
    Deposit Date YYYYDDD Julian Date
    Seq Number NNN For each Deposit Date, begin with 001 and increment each additional Deposit by 1.
    Last field for Detail Payment Transaction Record (6 characters)
    Transaction Seq Number NNNNNN Or zero For each payment summarized in a Deposit Ticket, beginning with 000001, sequentially increment the Transaction Seq Number.

    Note:

    IRM 3.17.10.2.3.2. for additional information on the Trace ID format.

  3. Each payment added to the URF with CC URADD, will need the Trace ID associated with the payment on Master File. The Trace ID Number for a payment can be identified on IDRS using CC TXMOD. If the payment is from ISRP, RPS or Lockbox, use RTR to find the Trace ID. Once the Trace ID Number is identified it must be transcribed onto the payment document. The Trace ID Number should also be annotated on Form 2424 transferred to URF.

3.17.10.3.2  (07-26-2013)
Receiving Unidentified Remittance Cases

  1. Receive Unidentified Remittance (UR) Cases and URADD Transaction Register (URF 03) from Perfection function. The UR cases will include letters, envelopes, and all case material received from the taxpayer (except the remittance), as well as copies of items such as money orders, cashier checks, government checks or illegible remittances. Other information hand copied from the remittance will be either the complete name and address or the check number in those cases in which the photocopy of the remittance is not included in the file.

    Note:

    Beginning January 9, 2012, Lockbox incomplete remittance documents (also known as unprocessables) will no longer be routed to Receipt and Control Payment Perfection for resolution. These cases will be routed to Error Resolution (ERS) for research. If ERS is unable to resolve the payment, they will be routed through Rejects to URF. These receipts should include the same backup documentation information as above including letters, envelopes, and all case material received from the taxpayer if available.

    1. When the Perfection function in Receipt and Control Operations adds the unidentified remittance to the URF, a three part letter (Form 3731(C)) can be generated to the taxpayer through IDRS. Parts 1 and 2 are mailed to the taxpayer; in every case, complete IDRS research must be performed in the Unidentified Remittance function before the 3731(C) letter is sent to the taxpayer. Part 3 is intended to be used as a history sheet. Figure 3.17.10-33.

      Figure 3.17.10-33

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Unidentified Remittance History Sheet

    2. UR cases received from Receipt and Control have been numbered with unique document locator numbers (DLNs) showing Tax Class "0" and Document Code "09" . UR block numbers assigned in Receipt and Control are limited to 000 through 499. Figure 3.17.10-34. The campus number or a "dump" file location code should not be used to form the UR DLN.

    3. Cases received with out of campus DLNs should not be transferred to the campus that received the payment. Add the credit to the URF using the "dump" file location code.

      Unidentified Remittance DLN

      Figure 3.17.10-34

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Unidentified Remittance DLN

    4. Upon receipt of Unidentified Remittances annotated as "ACS" or "levy," research to identify and apply the credits to their correct accounts. Should research be unsuccessful or procedural questions arise on these or other cases resulting from Collection action, contact Compliance Services Collection Operations for assistance.

    5. If the Perfection function is unable to locate a valid SSN to apply payments received with obsolete Form 942, Employer's Quarterly Federal Tax Return for Household Employees, the credits will be transferred to the URF. The UR function should not perform research on these cases and Form 3731(C) should not be issued to the taxpayer. The Error Resolution function will correspond with the taxpayer to determine the disposition of the payment. Existing UR refund and application procedures should be followed.

  2. Receive "Unknown" Cases from Cashier function. These cases are determined to be unknown (UNKN) when there is no taxpayer information or the handwriting is illegible. All unknown cases should have copies of all documentation received. These cases have been numbered with a UR DLN of the type shown above. A history sheet will be attached to each of these cases before assignment to the UR technicians; a blank Part 3 of Form 3731(C) may be used for this purpose.

  3. Receive and process credits transferred from Nullified Unpostables and/or Reject functions to the URF. You will receive original documents together with the adding machine tape totalling dollar amount of each document attached. A Nullified Distribution Listing will be received in the unit for Unpostable Resolution Code 8, Nullify Area Code 40 cases; the listing includes the following information for each item shown: master file, DLN, TIN, name control, MFT, tax period, amount. See IRM 3.12.32, General Unpostables, for further description of GUF 55-47 listing. The unit is responsible for securing cases shown on the listing for input to URF.

  4. Receive and process transfers from IMF, BMF and NMF accounts to the URF using Form 2424, Account Adjustment Voucher. Figure 3.17.10-35.

    Figure 3.17.10-35

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 2424, Account Adjustment Voucher

    Item # Description
    a DLN for Form 2424 to post the debit to the master file.
    b-h Taxpayer and remittance data used to define the payment.
    b. Name Control.
    c. TIN.
    d. DLN.
    e. Cross Reference Tax Period.
    f. Transaction Date.
    g. Primary Transaction Code.
    h. Debit Amount.

    Note:

    The correct Name Control, TIN, MFT, Tax Period, Transaction Date, and corresponding debit transaction code are required for proper posting to the master file.

    i Enter 4620 Account (Unidentified Remittance)
    j Amount of credit to be added to the URF. This must equal the amount in h.
    k Reason the credit is being transferred to the URF.
    l DLN of the payment.
    m-n Preparer information.
    m. Date prepared.
    n. Preparer's name.
    o Trace ID Number

  5. Cases will be received with complete documentation and back-up as follows: If incomplete documentation is received, return the case to the submitting unit.

    1. A hard copy of the IMFOL or BMFOL screen showing the credit being transferred must be attached to Form 2424. The IMFOL or BMFOL data can be dated no more than seven days prior to the receipt date in the URF/XSF Unit.

    2. Taxpayer's letter, copy of the document ordered from Files and other pertinent information regarding the case.

    3. Research history sheet indicating the research performed and the results, taxpayer contact and responses along with dates actions are taken. Statute credits are exempt from this requirement.

    4. If available, attach a copy of the check.

    5. The remarks section must indicate why the credit is being directed to URF. An IRM reference only, is not acceptable.

    6. The payment DLN and the Trace ID must also be indicated in the remarks section.

  6. Undeliverable refund checks will be transferred to the Unidentified Remittance account when the undeliverable refund check cannot be released through research or correspondence with the taxpayer.

    1. URF will search for a better address using various research tools. If a new address is located, update URF with the new address using CC URENT. Contact the taxpayer by letter.

    2. If a reply is received, resolve the case according to the taxpayer’s request.

    3. If the credit cannot be applied through research or correspondence, or if no reply, it will remain in the URF.

    Note:

    If the taxpayer requests that the payment is refunded or applied to a tax module, make sure that the case is documented.

  7. Unapplied master file FTD credits with a received date of less than one year will be journalized to Account 4620 (Unidentified Remittances) by sending a copy of documentation to the RRACS function for input. This action will make unresolved FTD credits available during research for all area and campus employees.

  8. Unapplied payments can be received from Entity Control function, either directly or through Rejects, which represent payments received from filers who are not liable.

    Example:

    If ... And ...
    Form 940 the entity is not liable for FUTA tax.
    Form 1120/1065 Form 8832 has not been filed or has been filed but not accepted. (Taxpayers with Form 1065 filing requirements who want to be reclassified as a Form 1120 filer.)

    Note:

    The Entity Control function is responsible for informing the taxpayer that they are not liable and will be receiving a refund if they owe no other tax liabilities.

    1. The UR function will receive for each case: a copy of the return, if available; a copy of the FTD coupon (if applicable); and Form 3244 annotated that the taxpayer is not liable and the credit is to be refunded.

      Note:

      The RTR print may be used in lieu of preparing Form 3244.

    2. These cases must be added to the URF via CC URADD and manually refunded via CC URREF.IRM 3.17.10.3.11. (Manually Refunding from URF) or applied via CC FMAPL/URAPL ( IRM 3.17.10.3.10, (Applying Credit to a Taxpayer's Account) to any outstanding balances (OBL)) found on IMFOL/BMFOL within seven workdays of their receipt. When applying to an OBL, use CC URAPL to generate Form 2349CG to explain the disposition of the taxpayer's credit.

      Note:

      For BMF not liable cases only, if the account has an outstanding balance (OBL) and -E Freeze, refund the payment and do not apply or offset unless the TC 150 amount is the exact amount of the credit in URF. See IRM 3.14.2.7.5.6 , Rollback Freeze (-E) for additional information.

  9. The State Income Tax Levy Program (SITLP) is a Collection program which uses state income tax refunds as levy sources on delinquent taxpayers. If a state sends money to the IRS that was in error due to a tape problem that was not corrected upon receipt, the funds will be transferred to the Unidentified Remittance File for refunding to the state. Extensive documentation and supporting correspondence from the state should accompany the refund request (Form 8765) received from Collection. Any questions or problems concerning the refunding of SITLP monies should be directed to the initiator of the Form 8765.

    Note:

    SITLP payments should not be added to the URF if the money has already been refunded to the taxpayer. SITLP payments cannot be refunded if the payment created an overpayment and was subsequently refunded to the taxpayer.

    Note:

    Only the portion of the offset used against the open liability should be refunded. If too much time has passed, the unused portion of the original offset may have already been refunded to the taxpayer. If so, the state will recover directly from the taxpayer. See IRM 5.19.9.2.6.5, Refunding Erroneous SITLP Payments, for additional information.

  10. Occasional cases, particularly those received from Unpostables may be too old to add to the URF. (See criteria in IRM 3.17.10. Exhibit 3.17.10-8 for the format explanation of CC URADD.) These cases must be added to Account 6800, Excess Collections, for accounting purposes. Return these documents to the originator with an explanation that they are to be added to the XSF using Form 8758, Excess Collections File Addition.

  11. Do not accept documents numbered with doc codes 48, 58 or 65, even with current year DLN. These credits belong in XSF. Return these documents to the originator with an explanation that they are to be added to XSF using Form 8758, Excess Collections File Addition.

  12. Do not accept pre posted documents representing nullified unpostable or rejected, redeposited, undelivered refund checks or deposited cancelled refund checks (doc code 45, transaction codes 740 or 841). These credits belong in Account 4970, Unapplied Refund Reversal. Return these documents to the originator with an explanation that they are to be added to Account 4970 using Form 3809, Miscellaneous Adjustment Voucher.

  13. Cases will be received from Rejects which represent erroneously filed remittances on Form 8752, Required Payment or Refund under Section 7519. Unpostables will have determined that these taxpayers are not liable and will have notified them of that fact. These cases may represent erroneously filed remittances from personal service corporations; Form 1120 filers where a TC 090 is on the account, no TC 055 is present, and the taxpayer has not replied when asked for a copy of an approved Form 8716; or other like situations. These cases must be added to URF via CC URADD and manually refunded via CC URREF ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  14. As of April, 2000, cases are no longer received from Account Maintenance (AM) and Collection when taxpayers do not respond to requests for returns when only a payment/credit is present on the taxpayer's account unless the statute has expired for either assessment or credit/refund. This includes AM-12 and AM-18 transcripts only. Exception to AM-18: Accounts with a TC 594, TC 599 or credits with DPCs of 04, 05, 16, 18, 20, or 21. Collection should attempt to make contact with the taxpayer prior to any money being moved to URF.

  15. Cases will be received which represent remittances received with Form 1065B. These credits should be added to the URF without further research and no attempt should be made to contact the taxpayer.

  16. Cases should no longer be received which represent remittances received with Form 5329 (MFT 29) unless there is insufficient information to locate the taxpayer's account. Per IRM 3.8.45.6.6, Manual Deposit Process, these MFT 29 credits should be processed through RRPS/ISRP. If the taxpayer's account cannot be located, a Form 3244, Payment Posting Voucher, will be prepared with a copy of the Form 5329 to move the credit to URF.

  17. Cases will be received which represent erroneous refunds caused by misrouted direct deposits.

    1. If the person who received the direct deposited refund provides the name of the person who should have received the refund, research for the TIN.

    2. If the TIN is found, apply the payment to the correct taxpayer's account with TC 720 via Form 3245, Posting Voucher-Refund Cancellation or Repayment, to hold the credit.

      Note:

      TC 720 should create a P- freeze on the taxpayer's account. It will also generate a transcript to Refund Inquiry. The Refund Inquiry function will determine the cause of the Erroneous Direct Deposit Refund and issue the refund.

    3. If the name is not provided or the TIN is not found, contact the taxpayer who sent the refund back for additional information. The name and TIN of the person who should have received the refund may have been listed on the bank statement of the person who received the refund. If the taxpayer responds with the name, follow 1. and 2. above.

    4. If the credit cannot be applied through research or correspondence, or if no reply, it will remain in the URF.

  18. Cases will be received which represent returned refunds from the bank for Refund Anticipation Loans (RAL) or Refund Anticipation Checks (RAC).

    1. If the bank sends a check to IRS to repay refunds sent to them for RAL or RAC, check the stub for the taxpayer's information.

    2. If attached and the taxpayer's information is available, apply the payment to the correct taxpayer's account with TC 720 via Form 3245 to hold the credit.

      Note:

      TC 720 should create a P- freeze on the taxpayer's account. It will also generate a transcript to Refund Inquiry. The Refund Inquiry Unit will review the case and issue the refund.

    3. When the bank returns a refund and a TC 841 has already posted to the SSN, check for an assigned Temp or IRSN number for the application.

    4. If the taxpayer's identity is not known, contact the bank for taxpayer information. See Exhibit 21.4.1–3, Most Common Refund Anticipation Loan Banks in IRM 21.4.1, Refund Research. If the bank provides the name and TIN, follow 2 above.

    5. If the credit cannot be applied through research or correspondence, or if no reply, it will remain in the URF.

  19. Fresno and Cincinnati URF received deposits dated December 1, 2011, through April 30, 2012, which represented returned refunds from various banks included in the IVO (Integrity & Income Verification Operation, formerly AMTAP) External Bank Leads program. IVO employees performed research and bank contact to resolve the refunds. IVO used Form 3245 for application of the returned refunds.

    1. If IVO was unable to identify and apply the credit from the original deposit, the case was routed to URF as Exteral Leads Processing (ELP) on a Form 3244.

    2. If conditions on the account prevented the posting of the credit from Form 3245, it should have been received in URF from Unpostables.

    3. Contact IVO to resolve the Unpostable credit. If, after research, IVO states they are unable to identify and apply the credit through research with the bank, add the credit to the URF as IDEN.

    4. The credit will remain in URF unless IVO reverses their entry.

    5. If the deposit is dated after May 1, 2012, transfer the credit to the 4430/4971 account. The remarks should include "ELP deposited after May 1, 2012" .

  20. Offshore Voluntary Disclosure Payments are consolidated to AUSC, but occasionally payments will be received at other SPC's. When a payment has been identified as OVDP, forward the payment to Austin Accounting, using Form 2158, Credit Transfer Voucher.

3.17.10.3.2.1  (07-26-2013)
Identity (ID)Theft-General Instructions

  1. Identity theft can affect tax administration in two primary ways:

    1. Employment of Income Related-This occurs when the identity thief uses the victim's Social Security Number (SSN) to obtain employment, resulting in what may appear as unreported income under the victim's account. In addition a refund return may be filed for which the owner is now required to obtain their own valid SSN information before the refund can be released.

    2. Refund Related—This occurs when the identity thief uses the victim's SSN to file a false federal income tax return to obtain funds. See IRM 10.5.3, Identity Protection Program.

  2. The originator of the case will have established that identity theft has occurred prior to the request for the credit/payment to be added to URF. Examples of cases may include:

    1. Payments from a taxpayer using another SSN for employment purposes and the true owner of the payments cannot be identified.

    2. Credits from a refund return where the taxpayer is using another SSN for employment purposes and the true SSN cannot be established.

    3. Credits from a returned or cancelled refund where the true SSN owner cannot be identified.

      Note:

      Wrongful Levy cases will be added to XSF after they are one year old. See IRM 3.17.220.2.13(7).

  3. Review incoming Forms 2424 labeled as ID Theft for:

    1. Complete research and documentation attached including any x-ref SSN information.

    2. Explanation of why credit/payment cannot be applied.

    If Then
    There is no resolution for the payment/credit:
    • and the source of the credit cannot be legally applied

    • because the true SSN owner cannot be identified

    • because the true owner of a payment cannot be located

    Add credit as status code IDEN
    Further action by URF personnel may resolve the credit/payment Add credit as status code OPEN

  4. If there is evidence or documentation that the return may be potentially fraudulent and there is no evidence on the account that the return has ever been reviewed or referred to IVO/CI/Exam or Frivolous, add to URF and contact HQ Accounting to refer the return to the RICS organization.

3.17.10.3.2.2  (01-01-2013)
Processing Installment Agreement User Fees (IAUF)

  1. Beginning January 1, 2010, Installment Agreement User Fees are processed systemically by a weekly IDRS Correction Run known as the User Fee Sweep. IDRS research for Installment Agreement User Fees is no longer necessary. Apply the full amount of the payment to the taxpayer's account using the appropriate payment transaction code.

3.17.10.3.2.2.1  (01-01-2013)
Receiving Statute Credits

  1. Do not accept documented "true" statute cases meeting the following criteria:

    1. Payment received with Form 1040X or other amended return filed after expiration of the statute of limitations for assessment on the original return;

    2. Payment received with timely filed Form 1040X or other amended return but, due to IRS error, the assessment of additional liability was not made before expiration of the statute of limitations for assessment;

    3. Payment received for additional liability timely determined by Examination but, due to IRS error, the assessment of additional liability was not made before expiration of the statute of limitations for assessment.

  2. Documented credits meeting the above criteria that are less than one year old from the IRS-received dates, are to be returned to the originator with an explanation that these credits are to be added to the XSF using Form 8758. "True" statute credits do not require further research by URF function.

  3. If there is insufficient documentation to determine if the credits meet the above criteria, add to URF with the source code "ST" and the status code "IDEN" until appropriate documentation is submitted.

    1. If sufficient documentation is received and the credits meet the above criteria, transfer to XSF using CC URAPL "T" and on Line 9, annotate TRANSFER TO 6800 A/C STATUTE CREDIT.

    2. Receive the generated Form 4830 for the transaction the following day. Send the yellow copy of the Form 4830 to the RRACS function as back-up for the debit to Account 4620, Unidentified Remittances. Renumber the white copy of the Form 4830 with "58" doc code and a blocking series in excess of "799" . Associate the renumbered Form 4830 with the appropriate URF case file and hand carry to the XSF manager.

  4. Take care to recognize situations in which a "new" credit has been erroneously associated with an "old" tax module which has created the "statute" situation, i.e., credit comparatively too large or small for usual liability. When in doubt whether a credit belongs to a particular entity, CC ESTAB for the payment document and secure complete MFTRA. An erroneously associated credit is not a "true" statute and should be worked as any other UR case.

3.17.10.3.2.2.2  (01-01-2013)
Processing Payment Expired CSED (PMTEXPCSED) Credits

  1. A Payment Expired CSED (PMTEXPCSED) transcript will generate when a payment is applied to a module after the Collection Statute Expiration Date (CSED) has expired.

    1. When the CSED expires on a balance due account, any balance due remaining on the module is systemically "written off" with TC 608.

    2. A payment collected after the expiration of CSED is an overpayment for which the taxpayer is entitled to have credited or refunded. The IRS has to receive authorization from the taxpayer for disposition of the payment.

  2. When a payment is received on a CSED account a TC 609 will post to reverse the TC 608. The new TC 608 balance will be recomputed after subtracting the payment.

  3. Compliance Services Collection Operation (CSCO) will perform all necessary research and correspondence according to IRM 5.19.10.5.2, Collection Operation Programs/PMTEXPCSED Transcripts. The payments will be applied or refunded per reply to Letter 672C .

  4. If there is no reply to Letter 672C, the payment will be sent to be added to the URF via Form 2424 if the payment date is less than one year old. CSCO will attach the transcript and IDRS prints to the Form 2424.

    1. If there is an unreversed TC 608 in the module, add the payment to the URF.

      Note:

      The account will be in debit status but the unpostable condition will be bypassed as long as there is an unreversed TC 608 in the module.

      Note:

      If the payment date is more than a year old, return the case to the originator. Form 8758 (with documentation) must be prepared for addition to the Excess Collection File (XSF).

    2. If there is not an unreversed TC 608, return the case to the originator so that the payment can be transferred to a full paid account.

  5. Add the case to the URF using Source Code P2 and Status Code IDEN. If a late response is received by CSCO they will prepare Form 8765 to indicate the application of the credit.

    1. If the taxpayer responds to apply the payment to the CSED module, apply the credit and use DPC 14 (Authorization given by taxpayer to apply payment to expired CSED account).

    2. If the taxpayer responds to apply the payment to another module, do so.

      Note:

      Do not apply the credit to another module unless requested by the taxpayer.

    3. If the taxpayer requests a refund of the payment, refund the payment.

    4. If the taxpayer requests that the payment be other than refunded, or applied to the CSED module, make sure that the case is documented.

3.17.10.3.3  (01-01-2013)
Entering UR Cases on IDRS

  1. Cases added to the URF may have an IRS-received date no earlier than one calendar year before the current date. For example, on February 11, 2007, a credit other than doc codes 48, 58 or 65 and true statute cases, received by February 11, 2006, or later may be added to URF. The IRS-received date should be the Return Due Date (including any extensions of time to file) for Transaction Code 806 (withholding and excess FICA payments). Use the actual IRS received date, i.e., the earliest date recorded by any IRS office, for all other credits.

  2. CC URADD will show a generated running subtotal of items and total money being entered. After all cases have been added, compare the totals by verifying item count and amounts on the IDRS screen with those on the adding machine tape.

  3. If the amounts do not agree, locate the erroneous record using CC URINQ and correct it by using CC UROUT "Z" . For an example of how to void a UR record Exhibit 3.17.10-11

  4. A history sheet will be attached to each case before assignment to the UR Technicians.

  5. Add cases to the URF by entering CC FMADD and transmitting. Input "C" in position 7 only to request a new CC URADD format when the running item count and dollar amount must be retained. The valid response is the CC URADD format. Exhibit 3.17.10-8

3.17.10.3.4  (01-01-2013)
Working Procedures for Preliminary Processing Clerks

  1. Verify the case count on URF03 listing.

  2. Large dollar cases will be worked first.

  3. Credits under $1.00 can be transferred to Account 6540, Small Debits and Credits Cleared. Use CC URAPL "T" to transfer credits under $1.00. Exhibit 3.17.10-13 for an example of CC URAPL "T" .

3.17.10.3.4.1  (01-01-2014)
Perform Initial IDRS Terminal Operations

  1. Research IDRS using all available Command Codes (CCs). IRM 3.17.10 lists CCs that might be helpful. See IRM 2.4, IDRS Terminal Inquiries. Documentation of actions taken, pending actions, telephone calls, copies of letters, IDRS employee number, case assignment/reassignment, etc. must be annotated on the History Sheet and be retained in the case file.

  2. When research reveals that a UR record has an erroneous name, use CC URENT to correct the name on the UR record. Exhibit 3.17.10-10

  3. When taxpayer correspondence positively indicates an address change, use CC INOLE or ENMOD to research current entity information. If the address needs to be changed, use CC ENREQ with CC INCHG (IMF) or CC BNCHG (BMF) to record the updated information on master file. Update address on URF record using CC URENT.

  4. Close case by applying credit, if possible, and record this action on the history sheet. Determine the appropriate application to be made and input information on IDRS with CC FMAPL/URAPL. This information will become a part of the UR record. The record status will automatically be changed to CLOS when the entire credit has been applied. IRM 3.17.10.3.10 (Applying Credit to a Taxpayer's Account) for complete instructions. Exhibit 3.17.10-13 for CCs FMAPL and URAPL.

    1. Use CC FMAPL to generate CC URAPL format.

    2. Use CC URAPL "M" to apply credit to Master File accounts. Online credit posting will be computer-generated to the appropriate tax module.

    3. Use CC URAPL "N" to apply credit to an NMF account.

    4. Use CC URAPL "T" to make a transfer of fund application.

  5. Use the CC FRM77 format to input specified transactions to any file in IDRS. This may be used to input TC 570 to freeze credit which would be necessary if secondary transaction code TC 570 had been omitted when the credit was applied initially. TC 570 may also be used to correct an erroneous transaction. For example: If a TC 670 was used instead of a TC 640 on an Examination Case, you will need to input a TC 570 to freeze the credit so it will not refund. If TC 570 was input in error, a TC 571 should be input to release the freeze.

    1. The input of CC REQ77 generates the CC FRM77 format. CC TXMOD for specific period needing TC 570 or TC 571 must precede CC REQ77. To request a CC FRM77 format, follow these steps:

    2. Input CC TXMOD with definer, TIN, MFT, Tax Period and transmit.

    3. The response is Page 1 of the TXMOD.

    4. Input CC REQ77.

    5. If CC TXMODA brings up the Information, then lines 2 and 3 are not necessary, only REQ77.

    6. The valid response to CCs TXMOD and REQ77 is a display of the CC FRM77 format. The required data will be entered after the prompts in the CC FRM77 format.

    7. Correspondence must be answered within 30 calendar days of the earliest "IRS-received" date, however, every effort should be made to provide quality responses in less time. If it is not possible to respond within this time period, send an appropriate interim response which includes the reason for the delay, when a final response may be expected, and an employee contact. (See IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates.) Record this action on the history sheet.

3.17.10.3.4.1.1  (01-01-2013)
Routing Attachments

  1. Mail Letter 3731(C) on all cases with complete address information that cannot be closed by IDRS research. The IDRS system generates Letter 3731(C) at the time the unidentified remittance is added to the URF by Receipt and Control. Figure 3.17.10-36. Destroy the letters when such correspondence is not necessary, i.e., if information is obtained from the taxpayer by telephone or if the case is closed by IDRS research.

    Figure 3.17.10-36

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Completed Form 3731(C)

  2. On closed cases, route any documents and correspondence pertaining to inability to pay or requests for payment agreements to the Compliance Services Collection Operations.

    1. If no action is required on the account by the UR Function, route all related correspondence to Collection.

    2. If action is required on the part of the UR Function, route a copy of the correspondence to Collection. Ensure the IRS received date is legible.

    3. When correspondence is routed to Collection, follow local procedures for sending an interim letter to the taxpayer.

  3. Route any loose pages of Forms 1040, U.S. Individual Income Tax Return, or related schedules to the Document Services (Adjustments First Read) function.

  4. Route all correspondence that cannot be appropriately answered by the Accounting function to the correct area per campus mail guide.

  5. Route all applications for extensions to Code and Edit function.

  6. The remaining open cases may be assigned to designated UR Technicians for more detailed research.

3.17.10.3.5  (01-01-2013)
Initial Processing by UR Technicians

  1. Receive, count and record all new cases on desk inventory if cases have been reassigned for more detailed work.

  2. Review cases before they are filed in the open file.

    Note:

    The filing order may vary between individual Unidentified Remittance Functions.

    1. Review for cases needing an interim reply to the taxpayer. Correspondence must be answered within 30 calendar days of the earliest "IRS-received" date, however, every effort should be made to provide quality responses in less time. If it is not possible to respond within this time limitation, you should send Letter 96C containing appropriate information as described in IRM 3.17.10 (IDRS Notice Issuance Criteria). Also see IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates.

    2. Review for cases that can be closed without more research. The Cashier function or the Preliminary Processing Clerks may have missed something that would allow immediate application.

    3. Check for cases that can be identified as a payment for another government agency or other payee. (IRM 3.17.10.3.11,Manually Refunding from URF) for further instructions.)

    4. Check for cases that can be identified as an AUR payment, indicated by transaction code 922.

  3. Review all other cases and determine, if possible, how to research each case.

    Example:

    Cases may be IMF, BMF, Reject, etc.

  4. Research all cases on IDRS using all available pertinent CCs. IDRS is the place to begin your research. Command Codes which may be helpful are:

    1. TXMOD to research specific tax modules which contain pending and posted transactions; and to determine the status of an account.

    2. SUMRY to review pending transactions and currently active tax modules under a specific TIN

    3. NAMES to research a nationwide database (Name Search Facility (NSF) at ECC-MTB) of taxpayers' SSNs or NAMEE to research a nationwide database of EINs. NAMEI (IMF) and NAMEB access the NSF of names and addresses to locate an SSN or an EIN. NAMES and NAMEI search for both the primary and secondary filer names. The hardcopy options are NAMEIX and NAMEBX.

    4. FINDE to research the NSF for the business' name and address information, using the EIN and FINDS to research for the taxpayer's name and address information, using the SSN.

    5. AMDIS to list all records that are on AIMS under the TIN.

    6. INTST to compute the correct outstanding balance, including interest and failure to pay accruals, to the date specified in the command code.

    7. COMPA to compute interest or estimated tax penalty for a specific amount for a specific period of time.

    8. COMPAF to compute failure to pay penalty

    9. COMPAD displays the detail used to compute the interest.

    10. TDINQ requests display of entity and module data, if present, on the TIF account which is pertinent to delinquent return investigations.

    11. STAUP is used to update the status of a module and may be used to accelerate, delay or skip routine notice issuance.

    12. ACTON to establish case control and history of cases.

    13. LEVYS to research levy source information on the TIF.

    14. IADIS to display active or defaulted installment agreements.

    15. SCFTR to research Campus Control File and overnight research of records that have been moved to the historical SCCF.

    16. CFINK to research the Centralized Authorization File.

    17. INOLE for researching the National Account Profile (NAP). This CC is particularly helpful in locating taxpayers outside of the campus' jurisdiction.

    18. IRPTR (with definer L) to provide two payee addresses, if present; filing status; one payer name and address; cross reference information; and a summary of up to 36 IRP money amounts by income type.

    19. IMFOL/BMFOL and RTVUE/BRTVU to do on-line research of master file account and return data.

    20. DMFOL to research individual obligations to agencies other than IRS.

    21. PMFOL to research Forms 1096 filed.

    22. HCFOL (Help) and ICFOL (Information) to help utilize the CFOL CCs.

  5. Research the Automated Non-Master File using the data base procedures and the query symbols for research shown in IRM 3.17.46, Automated Non-Master File. Non-Master File research can also be requested on Form 4338, Information or Certified Transcript Request. See Figure 3.17.10-37 Be certain to secure the DLN before making this request by calling the NMF Function in Cincinnati Submission Processing Center (CSPC).

    Figure 3.17.10-37

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Information or Certified Transcript Request

  6. Research microfilm as needed.

    1. Microfilm Replacement System (MRS) is an automated research system which eliminates most microfilm research done in IRS campuses and area offices. Account research requests are entered through IDRS terminals. Once a day, the requests are transmitted to ECC-MTB where the needed data is extracted from the master files and transmitted back to the requesting campus. The information is usually printed and distributed within the campus within 24 hours of the request.

    2. All retention registers and archival microfilm

    3. Partnership Name Directory

    4. FTD microfilm

    5. CAWR Module Register

    6. Form 1042 microfilm (PSC only)—prior to 1984

    7. SSA-produced W–2/W–3 CAWR microfilm (Latham, NY only)

  7. Transcripts and IDRS now indicate whether a payment was part of a multiple/split remittance. See IRM 3.17.10.2.11.1.1.2.(10) (Research Other Areas) for information about the multiple/split remittance indicator.

  8. Use CC RTVUE/BRTVU or ESTAB whenever an original document is needed in your research.

  9. Obtain copies of source documents on nullified unpostable cases if unable to apply payment.

  10. Request original documents on all rejects if unable to research on IDRS. When you receive an original return, you must determine if it has posted to the taxpayer's account. It will be necessary to request a transcript from master file if this information is not on IDRS. Research the SCCF using CC SCFTR to determine the status of the document. If the return is open on SCCF as non-remit, the return may be reinput. If the return is not open on SCCF, do the following:

    1. Make a copy of the return for your case.

    2. Prepare a Form 3893, Re-Entry Document Control, and attach it to the original return to be input for processing, checking the "Reprocessable" box on Line 11 and "Corrected to original return" on line 19. Figure 3.17.10-38

      Figure 3.17.10-38

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Re-Entry Document Control

  11. Use CC EFTPS to research electronic payments made via EFTPS. The following types of payment methods are available: ACH Debit, ACH Credit, FR-ETA, Levy, EFTPS-Online, Credit Card, RRB Link, Government and E-File Debit (EFW). An EFT number is assigned to each payment. The second digit of the EFT number identifies the payment method used. Refer to IRM 3.17.277.4.3, Electronic Payments for the configuration of the EFT Number and the payment method identification codes.

  12. Pull closed files on all cases rejected back to URF. Make a copy of this and refile original in closed file. The material on the closed case will provide information to begin your research.

  13. Check with the FTD function if help is needed in resolving an FTD case.

  14. Research the Remittance Transaction Research (RTR) System. RTR is a database which stores information from the Remittance Register Report (F813) and the Endpoint Master Listing Report. This system replaces the printing process of these reports produced by ISRP and allows for research to be done on-line.

  15. Research IDRS for CP2000 Indicators: TC 922, "F" Freeze code, and/or campus URP control number. If present on CC TXMODA or IMFOLT, apply payment with TC 640, MFT 30. Also check for substitute return (SFR) indicators which vary at each SPC. Apply as TC 640, MFT 30.

  16. ACCURINT is a research tool for front line employees that may be helpful in processing URF cases. Managerial approval is required and it is the campus option to approve users to access ACCURINT. Information concerning ACCURINT can be found at http://rnet.web.irs.gov/rs/accurint/idadmin.asp .

  17. Payments manually deposited with US Bank can be researched and copied via US Bank Single Point System. Payments manually deposited with Wachovia Bank can be researched and copied via Wachovia Connection. Availability to both systems is at the discretion of the sites.

3.17.10.3.6  (07-26-2013)
Processing URs for Payments Other Than Open Tax Liabilities

  1. Conscience money: This is a remittance received to ease the taxpayer's conscience. Usually there will be a note attached indicating it is for the "conscience fund " . For example: A taxpayer might write a note stating, "I will be able to sleep better now" . Use CC URAPL "T" to transfer conscience funds to Account 2360 , General Fund Receipts. (The Contra Account is 6400 , Miscellaneous Fees). Exhibit 3.17.10-13 for an example of CC URAPL "T" .

  2. Photocopy Fee: The entire processing of requests for photocopies of tax returns or tax return information is handled by IRS. A taxpayer remittance could be placed in the URF. If a remittance was intended for a photocopy or return information, transfer the credit to Account 2340 (Photocopy Fee) using CC URAPL "T" , and indicate in the remarks photocopy fee. Forward a copy of Form 4830 to the RACS Unit.

  3. Bulk Forms Fee: Remittance received from tax practitioners and other persons for shipment of bulk orders of tax forms should be refunded to the taxpayer using CC FMREF/URREF; under no circumstances may these amounts be applied to outstanding tax liabilities. The taxpayer should be sent a note explaining that the Superintendent of Documents (part of the Government Printing Office) is the only government agency authorized to sell printed materials such as federal tax forms. Refer them to the practitioner gate at the toll-free number 1-800-829-3676 or send them a copy of Publication 1045, Information for Tax Practitioners.

  4. Voluntary Contributions to reduce the Public Debt: If taxpayer contact reveals that the remittance was intended as a contribution to reduce the public debt, transfer the credit to Account 2350 (Public Debt) on IDRS using CC URAPL "T" , and indicate in the remarks as public debt. Forward a copy of Form 4830 to the RACS Unit. Figure 3.17.10-39.

    Figure 3.17.10-39

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 4830, IDRS Posting Document

  5. Payment other than the partial payments required under TIPRA received with Offer in Compromise: This is a remittance received with Form 656, Offer in Compromise other than the partial payments required under TIPRA and explained in IRM 5.8.1.9, Office in Compromise. The payment may be received from a third party on behalf of the taxpayer making the offer. Compliance Operations can verify the payment. An OIC payment may be identified by:

    • "-Y" freeze;

    • TCs 480 or 780 on tax module; or,

    • Status code 71.

    Note:

    Use CC URAPL "T" to transfer the credit to Account 4710 , Offers-in-Compromise. Forward a copy of Form 4830 to the RACS Unit.

  6. User fees for letter rulings and for determination and opinion letters: Contact the Tax Exempt and Government Entity (TE/GE) Unit in the Cincinnati Campus to have them determine which RRACS account these monies should be journaled to.

    • Annotate "User Fees" on Form 4830.

    • If the EIN, MFT, tax period and/or form type does not print on Form 4830, write the details in the remarks area.

    • Forward 2 copies of Form 4830 along with a screenshot from the Letter Information Network User Fee System (LINUS) to RACS for journalization.

    Note:

    Use CC URAPL"T"

    to transfer the credit to the determined account.

  7. Wrongful Levy Situations: These are credits received from attaching property belonging to a third party in which the taxpayer has no rights (for example, from a bank account other than the taxpayer's or from the sale of what appeared to be the taxpayer's property, or from attaching property over which the third party has a superior claim (for example, the third party's lien has priority). See IRC 6343(b). When a payment is identified as a wrongful levy situation, immediately hand carry supporting documentation and a print of the CC URINQ module to the Chief, Compliance Services Collection Operations. Collection personnel will follow their procedures for issuing an expedited manual refund. Upon assurance that the expedited manual refund procedures have been followed, annotate the worksheet showing action taken and remove credit from the URF using CC UROUT "V" .

    Note:

    Do not use CC URREF in wrongful levy situations.

    Note:

    The return of property to a third party due to a wrongful levy does not involve a determination of economic hardship. Economic hardship is one criteria for releasing a levy. See IRC 6343(a) at (1) (D). The return of property to a taxpayer is addressed in IRC 6343(d).

  8. Unclaimed Funds: These are credits returned to the IRS by a state and represent bank drafts and cashier's checks purchased by taxpayers which have never been cashed, but were made payable to "Internal Revenue Service" . Research thoroughly to identify the taxpayer entitled to such a credit. A call to the state agency issuing the credit will identify the bank which forfeited the credit if the documentation attached to the incoming credit does not. Contacting the bank which forfeited the credit to the state often yields additional information since the forfeiture took place recently. However, if the taxpayer who bought the cashier's check or bank draft cannot be identified, the credit will remain in the URF.

  9. Preparer Taxpayer Identification Number (PTIN) Payments: PTIN remittances intended for processing by an outside vendor may be deposited in error by IRS. If the PTIN payment has not posted to a taxpayer's account, it may be refunded back to the taxpayer from the URF using CC FMREF/URREF. Prepare Letter 3064C with a statement requesting the taxpayer to send the payment to:
    IRS Tax Pro PTIN Processing Center
    104 Brookridge Drive Suite 5000
    Waterloo IA 50702-5702

  10. USDA Discrimination Settlement Payments - KCSPC only: The United States Department of Agriculture (USDA) paid cash settlement and granted loan cancellation to a limited amount of farmers. The settlement resulted from a discrimination suit brought against the USDA by the farmers. Awards from the settlement are treated as taxable gross income. Poorman-Douglas Bankruptcy Services forwards to the Internal Revenue Service a list of recipients who received USDA settlement payments. Each claimant who received a $50,000 settlement from Poorman-Douglas is also entitled to receive $12,500 from the IRS to pay their taxes on this settlement. Exception: Cancellation of Debt may be a larger settlement amount in which case IRS pays taxes equal to 25% of the settlement amount.

    • The $12,500 tax payment is received in Accounting via IPAC. When IPAC transmission is received, RRACS prepares Form 3244 for current year transactions and routes the Form 3244 with taxpayer data to the Unidentified Remittance Function.

    • The Unidentified Remittance Function will add the total of the IPAC payment to the URF. The credits are then applied to the individual taxpayer's account with a TC 660 and a TC 570 to hold (freeze) the credit.

    • Use program code 85390 when working these USDA cases.

  11. If unable to determine the application for Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, contact Employee Plans (EP) for a resolution.

  12. Health Care Tax Credit (HCTC) Program: this program is for indviduals who have lost their jobs due to trade agreements. Payments are made directly to health insurance companies and COBRA administrators and then forwarded to a St. Louis Lockbox bank. At times the payment is returned by the vendor to HCTC because the individual's insurance expires. The vendor may mistakenly send the payments to FMS or to an IRS office. Forms or correspondence that may be received include:

    • Form 13560, Health Plan Administrator (HPA) Return of Funds Form

    • Form 13642, Department of the Treasury-Internal Revenue Service Health Coverage Tax Credit Invoice

    • Form 8885, Health Coverage Tax Credit

    • Payments that reference HPA or COBRA

    If these payments are processed by IRS, they should be returned to HCTC via IPAC. HCTC will provide a memo/letter with a short history of the payment. The Unidentified Remittance function will create a Form 2424 to move the payment from the taxpayer's IDRS module and IPAC the payment to Beckley Finance Center for HCTC.

3.17.10.3.7  (01-01-2013)
Researching the URF

  1. CC URINQ researches the Unidentified Remittance File (URF) in three ways: by amount of remittance, by name control or by DLN. If the DLN isn't known, adding the area office number to one of the other data elements narrows the search. Exhibit 3.17.10-9

  2. The URF Drop List may be used to research by Alpha (Part I), DLN (Part II) and Money Amount (Part III) all URF applications closed 4 months, or voids closed one month, prior to the list date. This list provides complete application information and can be used to determine payment application. (See Figures 3.17.10–55 through 58.)

3.17.10.3.8  (01-01-2013)
Changing Information on the URF

  1. Use CC URENT to update the following elements of the URF record:

    • First name line

    • Second name line

    • Street address

    • City, state or ZIP Code

    • Status code

    • Narrative

    • IRS-received date

    • Taxpayer Identification Number

    • Employee assignment number

    • Trace ID Number

  2. CC URINQ history will contain a record of the data change.

  3. Use CC URENT to send Letter 3731(C) to the taxpayer after the record has been added to the URF.

  4. See Exhibit 3.17.10-10 for CC URENT format and an example of a completed CC URENT sending a 3731(C) notice and changing the taxpayer's address.

3.17.10.3.8.1  (01-01-2013)
Processing of Unpostables Involving Unidentified Remittances

  1. With the exception of unpostables resulting from incorrect or unavailable money amounts, the Unpostable function will perform research to determine if they can correct the unpostable condition. For all unpostable conditions they are able to correct, Unpostables will prepare a Form 11358, Excess Collection Unpostable Conditions, and forward it to the UR function. Form 11358 will be prepared weekly, which will list each unpostable that has been corrected. The DLN, name control, TIN, and the data element that was corrected along with remarks will be noted on Form 11358. Exhibit 3.17.10-1

  2. Upon receipt of Form 11358, correct the erroneous data on the URF database using CC URENT. Do not void and re-add the credit to the URF.

  3. Unpostables resulting from incorrect or unavailable money amounts will be returned to the UR function for resolution.

3.17.10.3.9  (01-01-2013)
Changing Other Information on URF

  1. To correct or drop UR records before application has been made, use CC URAPL format and overlay with CC UROUT. Exhibit 3.17.10-13 for CC URAPL formats. CC UROUT formats can be used only in the campus and UR functions. This procedure is used to record a dishonored check, correct an erroneous UR amount or to void a record. The UR name control cannot be "UNKN" .

  2. CC UROUT "Z" is used to correct an erroneous money amount. Exhibit 3.17.10-11

  3. CC UROUT "V" is used to completely void the UR record from the Unidentified Remittance File.

  4. UROUT "D" records a dishonored check in whole or in part on the file. The information and a copy of the dishonored check are received from the Dishonored Check function. The dishonored check application updates the status from "OPEN" to "BDCK" and reduces the balance in the UR record. When the dishonored check has been recorded on the URF, make a copy of the URINQ response showing the completed action and forward to the Dishonored Check function.

  5. Should a DLN change or correction be necessary, void the record from the system using CC UROUT "V," and readd the record to the URF with the correct DLN using CC URADD.

3.17.10.3.10  (01-01-2013)
Applying Credit to a Taxpayer's Account

  1. Determine the appropriate application to be made and input information on IDRS with CC FMAPL/URAPL. URF credits are to be applied only to the module which the taxpayer originally intended or subsequently directed. If the taxpayer has not clearly designated the application of the payment through inquiries and research reveals balance due modules, apply the payment to the earliest unexpired Collection Statute Expiration Date (CSED). If multiple periods have the same CSED, apply to the earliest tax period. See IRM 5.1.19.4 , CSED Payment Application.

    Note:

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

    This information will become a part of the UR record. The record status will automatically be changed to "CLOS" when the entire credit has been applied. Partial application will reflect the new balance amount. Applications may be made daily.

  2. Application of credits from the URF, using CCs FMAPL and URAPL, cannot be made by persons outside the UR Unit. Upon finding the credit using CC URINQ, personnel outside the UR Unit will submit Form 8765, IDRS Control File Credit Application, with attached documentation identifying the credit and indicating its proper application. Figure 3.17.10-40

    Figure 3.17.10-40

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8765, IDRS Control File Credit Application

    1. Source of Credit—select IDRS control file where credit is located (URF).

    2. Application Type—Use "M" when the credit is to be applied to a Master File account; "N" when the credit is to be applied to Non-Master File (including EPMF applications); or "T" when the credit is to be applied to a general account rather than to a taxpayer's account (including NMF and EPMF accounts held in other campuses.)

    3. Control Number—must match number shown on URF record.

    4. Notice Indicator—check only if Letter 2349CG is to be sent to the taxpayer. Figure 3.17.10-41

    5. Return Filed Date—enter date return was filed if revealed by research.

    6. Account Name Control—enter 4–position name control as shown on URF. Circle with red pencil if name control on URF is "UNKN" which must be changed to the correct entry prior to application of the credit from the URF.

    7. Application Name Control—enter 4–position name control of module to which credit is to be applied (if "M" application).

    8. Primary Transaction CodeExhibit 3.17.10-12 for list of valid TCs to be used on "M" applications.

    9. Primary Transaction Amount—amount of credit to be applied with (h).

    10. Secondary Transaction CodeExhibit 3.17.10-12 for list of valid TCs to be used on "M" applications.

    11. Secondary Transaction Amount—amount of credit to be applied with (j). Field will be blank if (j) is 570.

    12. Tertiary Transaction CodeExhibit 3.17.10-12 for list of valid TCs to be used on "M" applications.

    13. Tertiary Transaction Amount—amount of credit to be applied with (l).

    14. Taxpayer Identification Number to which credit is to be applied—entry limited to nine numerics; "M" and "N" applies only.

    15. Tax Period—enter tax period of account to which "M" or "N" application is to be made in YYMM format.

    16. MFT—enter 2-digit Master File Tax Account code if application is "M" or "N" .

    17. Remarks—required entry on all applies.

    18. Plan/Report Number—enter 3-digit plan/report number if MFT is 46, 74 or 76. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.

    19. Location Code or 23C Date—required only for "N" applies.

    20. Tax Form—required only for "N" applies.

    21. General Ledger Account Number—required for "N" applies.

    22. Preparer Identification—required entry to include name of preparer of Form 8765, employee number, etc.

    23. Date—required entry of the date Form 8765 is prepared.

  3. Form 8765 mirrors the CC URAPL (and CC XSAPL) format as closely as possible. All Forms 8765 submitted to the UR Unit should have documentation attached identifying the credit on the URF as well as justifying its requested application through correspondence, research performed, etc. Should Form 8765 be received without this documentation or without proper completion of all required entries, return to the requestor immediately. Use CC FMAPL to request the generated CC URAPL format on IDRS. CC URAPL cannot be input to the URF if the name control on the UR record is UNKN; the name must be changed with CC URENT. Exhibit 3.17.10-13 for examples of CCs FMAPL and URAPL.

    1. Use CC URAPL "M" to apply credit to Master File accounts. On-line credit posting will be computer-generated to the appropriate tax module.

      Note:

      Estimated tax payments are to be input with TC 660 (current year) or TC 670 (prior year). For processing estimated payments, "current year" is the named calendar year and the next immediate calendar year through August 31. For example, a current year 2006 is calendar year 2006 through August 31, 2007.

      Note:

      If the payment being applied was made via EFTPS, a "Y " must be entered in the electronic payment indicator field. Note: The system will automatically default to "N" .

    2. Use CC URAPL "N" to make application to NMF accounts.

    3. Use CC URAPL "T" to make a transfer to Deposit or General Fund application.

  4. If the name control does not match that on the UR record, use CC URENT before using any CC URAPL format. CC URAPL cannot be input to the URF if the name control of the UR record is UNKN; use CC URENT to correct this before using CC URAPL. ( Exhibit 3.17.10-10)

  5. Form 4830, IDRS Posting Document, will be generated for each "N" or "T" application.

  6. Should an "M" or "N" application not be based upon information received from the taxpayer, send Letter 2349CG to the taxpayer. Figure 3.17.10-41.

    Figure 3.17.10-41

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Letter 2349CG

  7. Should the outstanding balance of the taxpayer's account be less than the amount of the payment being applied and where no Letter 2349CG has been sent, send the taxpayer Letter 3064C with an explanation. Should a credit be applied to a full-paid account pending additional liability, input TC 570 as a secondary transaction to hold the credit on the account and avoid additional work for Unpostables. Record the pending liability and amount as part of the history. All TCs 570 input must be monitored to determine appropriate release for refund (TC 571) when additional liability is no longer pending.

3.17.10.3.11  (01-01-2014)
Manually Refunding from URF

  1. Use CC FMREF/URREF to issue a manual refund from the Unidentified Remittance File. This type of application is restricted to the UR function and should be used sparingly. The UR record status must be OPEN or IDEN.

  2. A refund will be made based on the taxpayer's response. Some examples of refunds are: payment sent in error, payment intended for another agency or another payee, taxpayer paying interest on Form 1099, IRS test money, taxpayer having paid the same bill twice and having no outstanding balances, etc.

    Note:

    If a request for an IPAC to another federal agency or Beckley Finance Center is received or discovered through taxpayer contact, do not issue a manual refund. Input URAPL "T" and indicate IPAC details in the remarks. Forward a copy of all the documentation to RACS to return the funds via the IPAC process.

  3. If the taxpayer is to receive interest or needs penalties abated, apply to the taxpayer's account rather than manually refunding from the URF. See IRMs 20.1, Penalty Handbook and 21.4, Refund Inquires for additional instructions.

  4. Always check SUMRY or IMFOL/BMFOL to be certain there are no outstanding balances before manually refunding.

  5. No remittance which the taxpayer intended for a non-IRS payee (i.e., utility company, state department of taxation) should be applied to an outstanding balance.

  6. On parent-subsidiary cases—

    1. Research for open liabilities on the parent EIN only. On cases containing the Large Complex Corporation indicator (identified on IDRS and CC TXMOD as Large CORP CD followed by the campus code), contact the Technical Unit or the locally-designated function working these cases prior to any refund or offset action.

    2. Large Corporation Indicator instructions for "L–coded" returns appear in IRM 21.2.2, Research.

    3. Refer to IRMs 3.17.79, Accounting Refund Transactions and 21.4.4, Manual Refunds for further instructions in processing manual refunds in parent-subsidiary cases.

  7. Refund a UR credit by following these steps:

    1. Use CC FMREF to request the generated CC URREF format. Input the refund data. Exhibit 3.17.10-14

    2. The valid response is a display of the generated URREF format.

    3. Input the refund data.

  8. After applying the refund from URF, use CC URENT to add audit trail information to the permanent file, including the reason for the manual refund, ATAO case number or other identifying data.

  9. When refunding a payment for another agency or payee, send an explanatory letter to the taxpayer containing an appropriate apology for processing the remittance in error. Special IDRS Letter 3064C may be used.

  10. All refunds from the URF will be reviewed by the manager or designate before application.

3.17.10.3.12  (01-01-2013)
Working IRA Withholding Cases

  1. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) provides for withholding of income tax on Individual Retirement Accounts (IRAs) and deferred compensation plans (pensions). The withheld income tax from these plans can be deposited and reported as follows:

    1. The bank may report the withholding on their existing 941 along with income tax withheld from their employees.

    2. A separate EIN could be obtained to report this type of withholding and a 945 would subsequently be filed.

    3. The bank or plan administrator could report the income tax withheld using the EIN of each specific plan. A 941 would then be filed.

    4. In working these types of remittance, close contact should be maintained with the bank, financial institution or plan administrator to insure proper application of the remittance and the correct filing of tax returns. If an EIN assignment is required, contact Entity Control. After the EIN is assigned, Entity Control will notify the Unidentified Function so the remittance can be applied to the proper module.

3.17.10.3.13  (07-26-2013)
Processing Taxpayer Correspondence and Other Responses

  1. Review all correspondence to determine if you have sufficient information to close your case. It is recommended that correspondence be worked as you receive it.

  2. In cases in which the taxpayer indicates the remittance is for FTD penalty or Letter1206C, use CC FMAPL/URAPL with TC 690 to make the appropriate application to close the case.

  3. Verify information received from the taxpayer on all cases that have already been closed.

    1. Check the closure information on the URF to see if the case was closed as the taxpayer requested.

    2. If the case has been closed incorrectly, pull the closed file since the credit will need to be transferred. See 21.5.8, Credit Transfers, for instructions.

  4. Open File.

    1. File incoming cases if not immediately identified.

    2. Additional contacts with the taxpayer may be required if incomplete or no response to the initial Form 3731(C) letter is received. All appropriate steps should be taken to resolve unidentified remittance issues since if left unresolved, normal internal processing may cause the taxpayer to possibly receive an incorrect balance due notice or eventually create additional work and/or involvement from other IRS functions, including TAS. By taking the proper actions this will help to encourage voluntary compliance and ensure that IRS accounts receivable activity is not artificially inflated.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Internet research should be used in an attempt to locate taxpayers. Several sites (Google, SEC, ZABASearch, EDGAR, VIVISIMO and SWITCHBOARD) can be used to locate a phone number or address if one cannot be obtained through IDRS or Directory Assistance. Internet access may be provided to all employees or to specific delegated employees. Follow local procedures.

    3. If a telephone number is available, telephone contact with the taxpayer should be made. The Internal Revenue Service Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(2), provides identification requirements for all IRS employees working tax related matters. Information provided to communicate with a taxpayer is outlined in IRM 21.1.1.7, Communication Skills. Be very careful not to make an unauthorized disclosure. Refer to IRM 11.3.1, Introduction to Disclosure and IRM 11.3.3, Disclosure to Designees and Practitioners for additional information.

      Note:

      Do not use IRS jargon when communicating with the taxpayer. Do not leave confidential tax information on a voice mail message or an answering machine message.

    4. If no telephone number is available, prepare Letter 3064C to secure complete information. Include your name, employee ID number and telephone number.

    5. When the taxpayer indicates he/she has applied for an EIN but has not received it, contact the taxpayer. Secure all information concerning the new business. Usually the new EIN is under a slightly different name or address. Check IDRS for a new EIN using this information. If unable to locate the new EIN, send a request to Entity Control function to expedite assignment of an EIN or call the Tele–TIN function to have one assigned. Monitor for the established entity to post, and apply payment to account per taxpayer request.

    6. When the taxpayer indicates the payment should be applied to a valid SSN and CC INOLEX reflects "No Account on Master File", send request to Entity Control function to expedite "TC 000" to establish taxpayer account. Monitor for established entity to post, and apply payment to account per taxpayer request.

    7. Use CC URENT to send a second 3731(C) notice to the taxpayer if no response has been received to the first notice within 45 days.

    8. It may be necessary to research Non-Master File. If so, request the information on Form 4338, Information or Certified Transcript Request or research the Automated NMF data base using procedures outlined in IRM 3.17.46, Automated Non-Master File. Figure 3.17.10-37 for an example of Form 4338.

    9. If no response received to the last correspondence, review the case within an additional 120 days for new information that would lead to proper application such as a new address for correspondence, additional filings, x-ref details, new wage document information, other payment information.

  5. Applications received from Payment Tracers or other functions for action.

    1. If Payment Tracer personnel locate a payment in the URF which has an UNKN name control, they will route the case to the UR function for action. A Form 8765, IDRS Control File Credit Application, will show the account to which the money is to be applied and have attached back-up documentation. Figure 3.17.10-42.

      Figure 3.17.10-42

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Form 8765, IDRS Control File Credit Application

    2. Thoroughly research to ensure that the identified account is correct.

    3. If not correct, return package to the Payment Tracer Function with appropriate annotation.

    4. If correct, apply payment using the appropriate CC URAPL format.

  6. Should taxpayer response indicate a claim of identity theft and there is no indication that the taxpayer has been provided with the ID Theft information, refer them to http://irs.gov/uac/Identity-Protection for more information.

3.17.10.3.14  (01-01-2013)
Closing and Post-Closing Procedures

  1. When closing a case which needed research because the taxpayer failed to provide sufficient identifying information or the information provided was illegible, send stuffer Notice 942 with Letter 2349CG, as appropriate, to the taxpayer. Figure 3.17.10-43.

    Figure 3.17.10-43

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Notice 942

  2. Check all closed cases applied to IMF or BMF accounts against the URF Applications for IMF/BMF/IRAF Controls (URF 05), produced daily.

  3. Check all closed cases applied to NMF or cases that were refunded against the UR NMF Apply Register (URF03).

  4. All cases that have been on the URF for 10 months (aged cases) will appear on UR Aged 10 Month List (URF50).

    1. Review these aged cases to determine if all possible research or taxpayer contact has been accomplished. Special effort should be made to identify these cases because they will automatically go to Excess Collections File (XSF) in two months.

    2. Perform any further research.

  5. Cases that are still unidentified after 365 days, based on the IRS payment received date, will automatically be dropped from the URF. A status code of XCES will be generated to the URF. A posting document and Transaction Register—Excess Collections (URF50) will be generated.

    1. At the end of the month, Form 4830, IDRS Posting Document, will be received to identify cases that have dropped to Excess.

    2. Pull cases from open file, stamp "Excess Collections" , and date. Move the case file to Excess Collections.

    3. Cases that have dropped to Excess will be reviewed by your work leader to verify that all possible research has been accomplished. Do not transfer URF cases to Excess Collections before they are a year old unless research shows they belonged there originally, i.e., doc codes 48, 58 and 65 or "true" statute cases. Cases with received dates less than twelve months old should not generally be transferred to Account 6800, Excess Collections.

  6. If sufficient information is received to close a case after it has dropped to Excess, prepare a Form 8765, IDRS Control File Application, as directed in IRM 3.17.220, Excess Collections File. Figure 3.17.10-44.

    Figure 3.17.10-44

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8765, IDRS Control file Credit Application

3.17.10.3.15  (01-01-2014)
Unidentified Remittance Computer-Generated Reports

  1. URF01—Unidentified Remittance File Analysis

    1. Daily inventory lists prior balance, new accounts added, adjustments, accounts closed and new balance by both count and dollar amount for each area processed by the campus.

    2. Report also includes summary for the campus. Figure 3.17.10-45.

      Figure 3.17.10-45

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF01 — Unidentified Remittance File Analysis

    3. Several specialized source codes are summarized toward the end of the URF01. EF records electronic fund transfers between the times they are received and applied. P1 and P2 may be used, at campus option, to keep track of sub-inventories within the URF such as deposit discrepancies.

    4. As of January, 2001, an alert line is displayed at the end of the URF01 when the new unidentified balance exceeds a specified amount. When the balance reaches $1,000,000 (one million dollars) an explanation of this balance should be included in the comments section of the MMR report as described in IRM 3.17.10 (Reporting of Inventories).

  2. URF01-Monthly Unidentified Remittance File Analysis summarizes activity for the fiscal month in the same format described in (1) above.

  3. URF03-Transaction Register

    1. URADD Register shows unidentified remittance control number and amount for each item added to the URF by area . The second page of this register summarizes the area totals of these items by tax class, count and amount in such categories as nullifies and rejects. Figure 3.17.10-46

      URF03 - URADD Register

      Figure 3.17.10-46

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF03 — URADD Register

    2. URF03 NMF Apply Register lists UR control number, taxpayer's name and address, TIN, tax period, 23C date, form number, employee number and other information, including "Remarks " . Figure 3.17.10-47.

      URF03 - UR NMF Apply Register

      Figure 3.17.10-47

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF03 — UR NMF Apply Register

    3. URF03 Transfer Apply Register lists UR control number, taxpayer's name and address, employee number and other information. Figure 3.17.10-48.

      Figure 3.17.10-48

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF03 — UR Transfer Apply Register

      URF03 — UR Transfer Apply Register

    4. UR Restricted Apply Register shows type of application, UR control number, amount and employee number. A later page of this register summarizes the area totals. Figure 3.17.10-49.

      URF03 — Restricted Apply Register

      Figure 3.17.10-49

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF03 — Restricted Apply Register

    5. The URF Refund Voucher List reflects manual refunds and includes taxpayer's name and address, TIN (if available), amount of refund, control number, and employee number. A later page of this register summarizes the area totals.

    6. URF03 is a daily report, but will not be printed if no transactions occurred on the report date.

  4. URF05-URF Applications of IMF/BMF/IRAF-Controls

    1. Daily report lists completed URAPL "M" s in DLN order.

    2. Summary breaks down total records input by IMF, BMF and IRAF showing numbers of records input and applications updated with money amounts applied. Figure 3.17.10-50.

    Figure 3.17.10-50

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    URF05 — URF Applications of IMF/BMF/IRAF–Controls

  5. URF07-Unidentified Remittance File Performance Indicator Analysis

    1. Weekly inventory lists both dollar amount and count for prior balance, receipts, closures and new balance of each source code within the URF.

    2. Totals of prior balance, receipts, closures and new balance agree with URF01 inventory report of the same date.

  6. URF45-Accounts Receivable URF Report

    1. URF45 is a monthly report in two parts to aid in case management and to provide input to Headquarters.

    2. The first section of URF45 lists large-dollar cases in descending order by money amount and shows their DLN, name control, IRS-received date, entry date to the URF, current amount of the credit and cumulative amount of the credit plus that of all others listed above it. Figure 3.17.10-51

      URF45 — Accounts Receivable URF Report

      Figure 3.17.10-51

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF45 — Accounts Receivable URF Report

    3. The second section of URF45 is an inventory printed in duplicate showing the volume and amount of the beginning total inventory, beginning inventory of $25,000+ credits, total receipts during the period, receipts of $25,000+ credits during the period, total closures during the period, closures of $25,000+ credits during the period, total ending inventory, and ending inventory of $25,000+. Figure 3.17.10-52.

      URF45 — Summary Report

      Figure 3.17.10-52

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF45 - Summary Report

    4. One copy of the second part of the URF45 is to be retained in unit records and the other, accompanied by any required narrative, should be sent to Planning and Analysis Staff.

  7. URF50-Transaction Register

    1. Excess Collection lists UR cases which have dropped to excess collections in UR control number order and includes the amount of each item. Figure 3.17.10-53.

      URF50 — Excess Collection, Transaction Register

      Figure 3.17.10-53

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF05 - Excess Collection

    2. Dropped List 1 allows research of dropped cases alphabetically by taxpayer's name and is viewable on Control D.Figure 3.17.10-54.

      URF50 - Dropped List 1

      Figure 3.17.10-54

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF50 - Dropped List 1

    3. Dropped List 2 allows research of dropped cases by DLN. Dropped Lists are viewable on Control D.. Figure 3.17.10-55.

      Figure 3.17.10-55

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF50 - Unidentified Remittance Dropped List 2 (by DLN)

    4. Dropped List 3 allows research of dropped cases by money amount. Dropped Lists are viewable on Control D.Figure 3.17.10-56.

      Figure 3.17.10-56

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF50 — Unidentified Remittance Dropped List 3 (by Money Amount)

    5. UR50-Aged-10-Month–List shows all cases on the URF which are more than 10 months old. Elements of each case shown include UR control number, name control, original amount, balance amount, entry date and received date. Figure 3.17.10-57.

      URF50- UR Aged 10 Month List

      Figure 3.17.10-57

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF50 — UR Aged 10 Month List

    6. URF50-UR Case Assign List shows all cases on the URF by the employee number of the person who added a particular case to the file or the person to whom the case is assigned, if different from the employee who used CC URADD. The employee's list of cases is secondarily sorted by file entry date, earliest first. Other elements of each case shown are UR control number and balance amount. A new page begins whenever there is a change in employee number. This report has no summary. Figure 3.17.10-58

    URF50- UR Case Assign List

    Figure 3.17.10-58

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    URF50- UR Case Assign List

  8. URF60 - Monthly National Unidentified Remittance Analysis

    1. Monthly inventory summarizes activity for the fiscal month in the same format used for the URF01. Also includes a File Source Code Report and File Apply Code Report.

    2. A separate report is generated for each campus and includes a national roll up.

    3. The report is available on the Control D web site. Figure 3.17.10-59. and Figure 3.17.10-60a.

    Figure 3.17.10-59

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    URF60 — Monthly National Unidentified Remittance File Analysis Report

    Figure 3.17.10-60a

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    URF60 — Monthly National URF Source Code Report

    Figure 3.17.10-60b

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    URF60 — Monthly National URF Apply Code Report

3.17.10.3.16  (01-01-2013)
Balancing Computer-Generated Reports

  1. Upon receipt in the Unidentified Remittance Unit, computer-generated reports should be balanced to the employees' work records. Discrepancies should be resolved and reported to the manager and/or the RRACS Data Base Administrator.

  2. The extent of balancing performed will vary between individual Unidentified Remittance operations.

  3. The following is an example of daily balancing which will immediately reveal any imbalance or problem on the URF as well as facilitate production of a monthly trial balance:

    SOURCE OPERATION LINE ITEM
    URF01 (prior day)   New URF Balance
    URF03 (Add Register) plus NU Totals, RJ Totals, Others Totals, UR Totals
      (Restricted Apply Register) minus

    plus
    Total D Type Applies, R and Manual Refunds
    Total Z Type Applies (may be −)
     
      (Transfer Apply Register) minus Grand Total (Transfer Applies)
     
      (NMF Apply Register) minus Grand Total (NMF Applies)
    URF05 minus Total Applications to Master File
    URF01 (current day) equals New URF Balance
    URF01 (prior day)   Current FY RR
    URF03 (Add Register) plus NU Totals, RJ Totals, Others Totals, UR Totals
      (Restricted Apply Register) plus Total Z Type Applies
    EOD–16 (IDRS PJ Recap) minus Totals (Current Fiscal Year URF Applies)
    URF01 (current day) equals Current FY RR
    URF01 (current day)   New Accounts Added
    URF01 (prior day) minus New Accounts Added
      equals Net New Accounts Added
    URF01 (current day)   Increased Amounts
    URF01 (prior day) minus
    equals
    Increased Amounts
    New Increased Amounts
    URF01 (current day)   Accounts Closed
    URF01 (prior day) minus
    equals
    Accounts Closed
    New Accounts Closed
    URF01 (current day)   Partial Application
    URF01 (prior day) minus Partial Application
      equals Net Partial Application
    URF01 (current day)   Closed Excess Collection
    URF01 (prior day) minus Closed Excess Collection
      equals Net Closed Excess Collection
    URF01 (current day)   Dishonored Checks
    URF01 (prior day) minus Dishonored Checks
      equals Net Dishonored Checks
    URF01 (current day)   Voided Accounts
    URF01 (prior day) minus Voided Accounts
      equals Net Voided Accounts
    URF01 (current day)   Decreased Amounts
    URF01 (prior day) minus Decreased Amounts
      equals Net Decreased Amounts
    EOD–16 (IDRS PJ Recap)   Totals (Current Fiscal Year URF Applies)
      plus Totals (Prior Fiscal Year URF Applies)
      minus (Net Accounts Closed)
      minus (Net Partial Application)
    URF03 (NMF Apply Register) plus Grand Total (NMF Applies)
      equals (should be zero)
    Journal (RRACS)   # 010861124083
      plus # 010861124085
    plus # 100861113127
    plus # 100861113128
    URF03 (Add Register) equals NU Totals, RJ Totals and
    Other Totals

3.17.10.3.17  (01-01-2013)
Reporting of Inventories

  1. Production data for the weekly WP&C Managers Report should match the staff hour reporting period ending Friday or Saturday as directed in IRM 3.30.50, Performance Evaluation Reporting System.

  2. The weekly miscellaneous inventory report (MISTLE) described in IRM 3.30.124, Campus Monitoring Reports, includes URF data.

    1. Beginning Inventory, Weekly Receipts and Ending Inventory documents and dollars are derived by subtracting immediately prior week's Friday work daily URF01/URF Analysis (Service Center Totals) for Prior Balance; New Accounts Added and Increased Amounts; and New URF Balance, respectively, from corresponding fields of the current week's Friday work daily URF01/URF Analysis (Service Center Totals).

    2. Weekly Closures documents and dollars are derived by subtracting the total of Accounts Closed, Partial Application, Closed Excess Collection, Dishonored Checks, Voided Accounts and Decreased Amounts of the immediately prior week's Friday work daily URF01/URF Analysis (Service Center Totals) from corresponding fields of the current week's Friday work daily URF01/URF Analysis (Service Center Totals.)

3.17.10.4  (01-01-2013)
Deposit Discrepancies

  1. Unresolved Debit Vouchers (SFs 5515) received from depositaries may indicate discrepancies (other than checks on which payment has been refused) between the Deposit Ticket (SF 215A) and the supporting checks such as:

    • Encoding errors;

    • Slipped blocks;

    • Piggy backs;

    • Improper SF 5515 charge backs;

    • Counterfeit Currency.

  2. Discrepancies involving more than one payment in a block are to be processed using the procedures in this section. Discrepancies involving only one payment in a block (i.e., single encoding errors, guaranteed amounts) are to be processed using the procedures in IRM 3.17.10 (Dishonored Check File).

    1. Bank Discrepancies/Bank Adjustments Deposit Tickets and Debit Vouchers (lost check, encoding error, slipped blocks, etc) should also get a new Trace ID Number when received from the Bank. Function to generate the Trace ID # on BBTS will depend on the flow of work at each site. The 20 digit Trace ID Number must be generated from BBTS with System ID 25. Stamp Trace ID on the front of the Debit Voucher/Deposit Ticket.

      Note:

      See IRM 3.17.10.2.3.2. for Trace ID format.

  3. Related discrepancies within a block of payments are to be resolved by a limited number of employees to ensure that all working on the problem(s) are aware of all adjustments made during resolution.

  4. In general, debit discrepancies will be entered into 1710 Account , Dishonored Checks, and credit discrepancies will be entered into 4620 Account, Unidentified Remittances.

    1. To ensure control of deposit discrepancy cases, these entries to the appropriate accounts will be made immediately upon identification of a situation as a deposit discrepancy. A technician should not be working on a case which is not controlled.

    2. To track deposit discrepancies controlled in the Unidentified Remittance File, use source code P1 or P2 when entering the credits to the URF using CC URADD. The totals of this sub-inventory will then appear on the URF01 report.

  5. When resolving deposit discrepancies, the field should follow procedures, as stated, in IRM 3.17.10 (Deposit Discrepancies), making every effort to resolve outstanding items. Depositary banks are required to respond to IRS inquiries within 21 days. However, in the event the bank does not respond in a timely manner to IRS needs on a routine basis, the field is advised to contact their Headquarters analyst for assistance in negotiating with the bank.

    Note:

    On individual cases where the depositary bank has not responded after 21 days, initiate a follow-up with the bank. Cases with no response after the initial follow-up should be flagged for managerial review. Management may determine if an additional follow-up letter, signed by the Field Director, is needed.

  6. Although an opinion from the Associate General Counsel, General Accounting Office, does not find the Campus Director accountable for funds collected under a Lockbox arrangement, the campus is responsible for resolving deposit discrepancies and properly crediting taxpayers' accounts for amounts paid to the IRS through a Lockbox. Accounting employees will work through their designated contacts at the Lockbox banks to solve these problems.

3.17.10.4.1  (01-01-2013)
Timeframes for Resolving Deposit Discrepancies

  1. Encoding errors, piggy backs and improper SF 5515 charge backs must be resolved within 45 calendar days of the date the discrepancy was identified.

  2. Slipped blocks must have all avenues of research exhausted within 150 calendar days of the date the discrepancy was identified.

  3. At the end of these periods, unresolved credits with IRS-received dates older than one year will be transferred into the 6800 Account, Excess Collections, and unresolved debits will be transferred into the 7650 Account, Deposit Discrepancies.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.17.10.4.2  (01-01-2013)
Controlling Deposit Discrepancies

  1. The entire block of payments containing multiple discrepancies should be worked as a unit to facilitate balancing. A worksheet similar to that shown in Figure 3.17.10–64 may be helpful in balancing the block as well as recording the work in progress.

  2. Cases in which the taxpayer has not received proper credit for his/her payment must be entered to either the Dishonored Check File (DCF) or Unidentified Remittance File (URF) as described in IRM 3.17.10 (Deposit Discrepancies).

3.17.10.4.2.1  (07-26-2013)
The Bank Discrepancy Application

  1. Effective April 2006, National Standard Application #118, Bank Discrepancy Application, was released to control the bank discrepancy inventory and produce reports. The application controls the bank adjustment cases by systemically assigned sequence numbers for each debit voucher or deposit ticket number entered. The application is web based, accessed through the INTRANET. It is maintained at ECC-Memphis.

    1. You must have Adobe Acrobat and JInitiator to run the Bank Discrepancy application.

    2. You must have an OL5081 approved to access the application.

  2. The baseline application is administered by the Dishonored Check functional area.

    1. Access to Bank Discrepancy Application is controlled by a user database, with each user assigned an access level and profile.

    2. A Headquarters security administrator has been designated to maintain the user management role under the Utilities Menu. This designation includes adding, deleting, unlocking or modifying users using OL5081.

    3. Level of access must be approved by the user's manager. These access levels determine the features of the application that the user may access.

  3. The Bank Discrepancy Application consists of the following modules:

    Module Name Module Function
    Utilities Menu
    • User management - Add, delete or modify users for this site

    • Bank names - Update bank names for this site

    • Case type - Update case type for this site

    • Suspense Actions - Update suspense actions for this site

    Debit Vouchers Enter debit voucher (DV) information.
    Debit Tickets Enter deposit ticket (DT) information.
    Reports Run a selection of several different reports that can be viewed or printed.

  4. Any function having a printing problem should open a KISAM Ticket and have the ticket assigned to group EOPS-ECC-USSB-EISS-IMSS.

  5. To change your password, you must utilize the following password rules:

    • First character must start with a letter

    • Must be a minimum of 8 characters

    • Must include at least one uppercase letter

    • Must include at least one lowercase letter

    • Must include at least one numeric character

    • Must include at least one of the following special characters: #, $, ! or _ (underscore)

  6. If the session is inactive for 15 minutes, the session will terminate.

3.17.10.4.3  (01-01-2013)
Encoding Errors

  1. Encoding is used to convert and print the amount of the payment shown on the remittance in a Magnetic Ink Character Recognition (MICR) font on the lower right side of the front of the check. An encoding error occurs when the operator misreads the numeric amount indicated on the remittance.

  2. If, for example, a check is written for $1,561.00 but encoded for $582.36 and is returned by the bank, take the following action:

    1. Using CC BDADD, add the debit voucher for $582.36 to the DCF.

    2. Using CC BDAPL, apply $582.36 to the taxpayer's account. These two actions clear the debit and reduce the credit on the taxpayer's module.

    3. Prepare Form 3244, Payment Posting Voucher, for the correct amount, $1,561.00, using the transaction date of the original payment.

    4. Send check and Form 3244 to Clearing and Deposit for processing.

  3. If a correction is not received from the bank for all the erroneously encoded items within the block contact the bank, working through them to resolve the discrepancy.

  4. IRM 3.17.10.2. (Dishonored Check File) for processing documentation needed. (i.e., copy of check, bank statements from taxpayer). As per local procedure, encoding errors may be routed to Accounting through Accounts Management after retrieving required documentation from the taxpayer. (See IRM 21.5.7, Payment Tracers.)

  5. Processing deposit discrepancy encoding errors is much like processing single encoding errors; however, correct amount of these multiple encoding errors is often assigned to an adjoining remittance in the block or the same error (i.e., moving decimal point one or more spaces) has been made in a number of remittances in the block.

3.17.10.4.4  (01-01-2013)
Slipped Blocks/Mixed Data/Mixed Entity

  1. A slipped block occurs when an operator has transcribed the entity from one document and the remaining information from another document in the block.

  2. Receive debit and credit adjustments from the depositary to adjust encoding errors contained in a slipped block.

  3. Determine the extent of the slipped block condition.

  4. Establish a worksheet encompassing all items in the block. Form 813 may be photocopied and the copy made into a worksheet similar to that shown in Figure 3.17.10–61.

    Figure 3.17.10-61

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Local Slipped Block Worksheet

  5. If the taxpayers each have received the correct credit, but the document number on MFTRA does not match the actual number on the document, renumber the documents. In this case, deposit balances.

  6. If the taxpayers have been credited with incorrect amounts and the deposit balances, transfer credits to the correct accounts as described in IRM 3.17.10 (Encoding Error). In this case, taxpayer 30 received taxpayer 29s credit and taxpayer 31 received taxpayer 30s credit Figure 3.17.10-61

  7. In the "true" slipped block, the taxpayer's account is usually credited properly, but the bank has improperly debited the taxpayer's checking account.

    1. Assemble documentation to request proper debits and credits from the depositary. Annotated Form 813 with supporting checks and other materials will be necessary.

    2. When a credit is received, place into the URF until the block is balanced.

    3. When a debit is received, place into the DCF until the block is balanced. If the debit is added to the DCF with the last three digits of the slipped block DLN entered as the name control, it will appear on the Aged report which can be monitored daily.

  8. After all corrections have been received, the credits and debits should balance.

  9. If the debits and credits do not balance, search the taxpayers' accounts for duplicate credits or for accounts not receiving proper credit.

3.17.10.4.5  (01-01-2013)
Piggy Back Remittances

  1. Piggy Back remittances occur when more than one check stick together and are processed as one check, the top remittance being the only one really processed but not endorsed. The bottom payment is endorsed, but it and any other checks between it and the top remittance have not been included in the deposit ticket and are not processed (free items).

  2. Ensure that the taxpayer has not submitted a replacement check.

    1. If a replacement check has not been submitted, prepare Forms 3244 and 4287, listing the information for proper credit application and hand carry to the Deposit Activity.

    2. If a replacement check has been processed, compare the payment dates of the original payment and replacement check. If not the same, a date change should be input so that it reflects the earliest received date. See IRM 21.5.8, Credit Transfers for instructions. Return the piggy back remittance to the taxpayer with a brief note informing the taxpayer that the date will be changed so that they are given credit for the original received date.

  3. A listing of free items may be received from the depositary with an SF 215, Deposit Ticket.

    1. Research taxpayer's account for an open module.

    2. If a free item can be identified, prepare Form 3244 using the date of the original deposit ticket with which the check had been sent to the bank as the "Transaction Date" and the entity information of the module you identified.

    3. If a free item cannot be identified, prepare Form 3244 using the date of the original deposit ticket with which the check had been sent to the bank as the "Transaction Date" and entering "URF" in "Remarks " . Enter item to the URF and include copies of the 813, the remittance and MRS in the case file.

    4. Hand-carry Forms 3244 and free items to the Deposit Activity.

3.17.10.4.6  (01-01-2013)
Improper SF 5515 Charge Backs

  1. Contact the bank which generated the erroneous SF 5515, requesting DT 215 to "wash" erroneous debit voucher.

  2. Take no adjustment action to journalize until corrective documentation is received.

3.17.10.4.7  (01-01-2013)
Counterfeit Currency

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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3.17.10.4.8  (01-01-2013)
Federal Tax Deposit Discrepancies

  1. Beginning January 1, 2011, the Federal Tax deposit (FTD) PAYTAX system, was decommissioned. FTD payments will be required to be made electronically and processed through EFTPS. Due to the decommissioning of PAYTAX, previously submitted FTD remittances may require adjustments due to bank or taxpayer error. Overpayment adjustments may require a manual refund from the URF back to the Financial Institution making the FTD payment.

  2. Beginning June 10, 2011, original requests for adjustments will be routed to or received by the FTD Point of Contact (POC) located in the Accounting function. See IRM 3.5.17, Federal Tax Deposit System. The Accounting POC will forward the documentation to the Hardcore Payment Tracer function (HPTF), who will monitor all actions and notify the taxpayer if necessary. See IRM 3.17.5, Hardcore Payment Tracers. If the payment is less than 12 months old, HPTF will prepare Form 2424, with documentation, to move the overpayment to the URF to refund the overpayment to the Financial Institution.

    Note:

    Documentation will include:

    • copy of taxpayer's check

    • Bank Statement

    • Documentation of FTD block research

    • TC 971, AC 296 on taxpayer's account

    • prints of all IDRS command codes utilized

    • Letter from Financial Institution requesting the credit

    • Form 2424 with remarks indicating "FTD Banking Error" or "Manually refunded from URF"

  3. Verify all documentation is complete. If not, reject back to the originator.

  4. Use IDRS Command Code FMREF/URREF to issue a manual refund from the URF to the Financial Institution. See IRM 3.17.10.3.11, Manually Refunding from URF.

  5. Do not issue taxpayer an explanatory letter.

  6. Notify the HPTF of the completed action.

3.17.10.4.9  (01-01-2013)
Contacting Taxpayer

  1. Avoid contacting the taxpayer if the deposit discrepancy problem is internal to IRS, being certain to freeze notice issuance which would otherwise be generated by IRS error.

  2. No standard form letters are available for use in corresponding with the taxpayer since the letter contents can differ substantially with the particular situation.

  3. At campus option, Correspondex Letter 1687(C) may be used in encoding error cases if modified by adding a paragraph:

    "Your check may have been processed for a different amount than that shown on your check. Please send us a photocopy of the front and back of your check plus a statement from your bank stating the date and amount actually withdrawn from your account. If an adjustment has already been made, please have your bank provide a copy of the adjustment document" .

3.17.10.5  (01-01-2013)
Reimbursement of Bank Charges Due to Service Loss or Misplacement of Taxpayer Checks

  1. Policy Statement 5-39 (Reimbursement of Bank Charges Due to Erroneous Levy and Service Loss or Misplacement of Taxpayer Checks) provides that the Internal Revenue Service will reimburse taxpayers for bank charges resulting from Service loss or misplacement of taxpayer checks during processing. In practice, Small Claims are paid from the Judgment Fund, 31 U.S.C. 1304 (a) (3), after they are processed by the IRS Finance Center, Beckley, WV, under the authority granted by the Financial Management Service (FMS), a bureau of the Department of the Treasury. See IRM 5.19.6.12.3 (7) (Erroneous Levy, Reimbursement of Bank Charges).

  2. For purposes of administering Policy Statement 5-39:

    1. "Bank" is any financial institution or other institution providing remittance-issuing services, i.e., bank, credit union, savings bank, savings and loan.

    2. "Charges" include stop payment, reissue and research or photocopy fees charged by banks when the IRS, having mislaid the original remittance, has advised the taxpayer to again make payment or to prove payment;

    3. Charges cannot exceed one thousand dollars ($1,000.00);

    4. Charges must represent actual expense paid by the taxpayer (cannot be waived by the bank or paid by someone other than the taxpayer or his/her authorized representative); and

    5. Charges must be appropriately claimed of the Campus by the taxpayer within one year of its accrual.

    6. "Loss or misplacement" includes failure to properly credit the taxpayer's account as well as mishaps occurring during the deposit operation. Malfeasance or misfeasance by agents of the Campus such as Lockbox personnel, Postal Service or couriers and embezzlement by Campus personnel are within the scope of Policy Statement 5-39.

    7. "Checks" include remittances such as personal or business checks, bank drafts, cashier's checks, money orders; and

    8. Checks must be paid in full to the IRS at the time the taxpayer claims reimbursement under Policy Statement 5-39. ( For example, if the misplaced remittance was for $530.00 and the stop-payment charge was $25.00, the taxpayer's replacement payment must be for $530.00. The taxpayer does not qualify for reimbursement by submitting a replacement check for $505.00 [original amount less expense].)

    9. IDRS research will be necessary to verify taxpayer's information.

      Note:

      DCF is only allowed to forward claims for Stop Payment and DDIA Processing Errors. For all other requests see IRM 3.17.10.5 (19).

  3. If the original payment from which the claim arises was made at the area office (i.e., to Revenue Officer, teller function), the claim will be processed by Compliance.

  4. If the original payment from which the claim arises was made at the campus, through a Lockbox or the site of the original payment cannot be determined, the claim will be processed by Campus Accounting Operations personnel as described in these procedures.

  5. If an employee of any functional area discovers in correspondence or during telephonic contact with the taxpayer or his/her representative indication that a bank charge was incurred due to Campus loss or misplacement of a payment and determines that the criterion in (4) above is met, that employee will immediately:

    1. Mail a Form 8546, Claim for Reimbursement of Bank Charges, to the taxpayer or authorized representative with a return envelope addressed to the attention of Accounting Operations with the appropriate local stop number;

    2. Send the original or copy of the taxpayer correspondence with any attachments pertaining to a claim under Policy Statement 5-39 or a record of the telephone conversation to Accounting Operations; and

    3. Continue working, according to established procedures of his/her functional area, any part of the taxpayer's case which does not pertain to the taxpayer's claim under Policy Statement 5-39.

    4. When it is determined that penalties and interest have been incurred on these lost/misplaced items, take action per IRM 21.5, Account Resolution, at the appropriate time. When the item involved is an estimated payment, reinput the transaction with the original date.

  6. Upon receipt of documentation described in (5) a above, Accounting will maintain a file of this documentation awaiting association with the taxpayer's completed Form 8546. Unassociated documentation will be purged from this file one year after the accrual of the expense as indicated in the documentation or one year after the taxpayer reveals to the Campus that such an expense has accrued, whichever date is earlier.

  7. Upon receipt of the completed Form 8546, associate documentation from the holding file. Some completed Forms 8546 may be received without previous contact with the Campus about the claimed bank charge and will, therefore, have no material in the holding file. Figure 3.17.10-62 for sample completion of Form 8546.)

    Figure 3.17.10-62

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8546, Claim for Reimbursement of Bank Charges Incurred Due to Erroneous Service Levy or Misplaced Payment Check

  8. Evaluate completed Form 8546 and supporting documentation from the holding file. In addition to the points mentioned in (2) above, an allowed claim must:

    1. Result from Campus mishandling of the taxpayer's remittance which may occur through failure to act as well as by taking an incorrect or improper action;

    2. Be based upon the Campus's request for a replacement payment or proof of payment;

    3. Include documentation substantiating the claimed charge and its payment; and

    4. Be signed by the taxpayer or authorized representative.

  9. The taxpayer need not supply information supporting his/her claim if it is already part of the Campus's records. For example,

    1. If the module indicates a notice was sent to the taxpayer, the taxpayer need not submit his/her copy in support of the claim.

    2. If the account module indicates replacement credit, the taxpayer need not submit a copy of the bank draft.

  10. The claim evaluator often must deduce the logical chain of events based on normal prudent behavior and Campus procedures. For example:

    1. Remittances are usually sent to the IRS via first class mail with no return receipt requested. Such a taxpayer whose check is not cashed cannot provide documentation of making the payment; Campus records of the taxpayer's account module may not show the credit. However, stop-payment action by the taxpayer indicates that the payment was made since the taxpayer cannot profit, but only avoid the bank debiting his/her account twice.

    2. Account discrepancy resolution is often conducted by telephone with Campus personnel suggesting that the taxpayer stop payment on the original remittance and make repayment. This advice is standard Campus practice of which the taxpayer will have no proof. By stopping payment and making the repayment, the taxpayer proves the requirement of (8)b above.

  11. If none of the information provided by the taxpayer or Campus records disqualifies the Form 8546 from consideration, any missing information needed to complete the claim should be requested from the taxpayer or his/her representative. If no TIN is available and the taxpayer is not willing to provide it, deny the claim. Use the telephone whenever possible. While awaiting taxpayer response, the case file is to be kept in the holding file described in (6) above.

  12. If the verbiage on Form 8546 has been altered by the taxpayer in any way, the claim should not be accepted. Follow procedures in (13) below.

  13. If the claim does not meet all of the above criteria, send a brief disallowance letter to the taxpayer indicating the reason for the disallowance, including the name, telephone number and employee ID number of the evaluator. The case file is to be retained in the holding file described in (6) above, but may be segregated with other disallowed cases within that file.

  14. If the claim meets all of the above criteria and is approved for the exact amount shown on Form 8546, then:

    1. Send Letter 2179(P) or IDRS Correspondex Letter 2179C and FMS Form 197 to the taxpayer. FMS Form 197 can be obtained at the following web address http://fms.treas.gov/judgefund/form-197.doc . Exhibit 3.17.10-16

      Note:

      FMS Form 197 must be signed by the taxpayer.

    2. Complete FMS Form 197 for each claim. The taxpayers TIN must be entered on FMS Form 197 or Beckley Finance Center (BFC) will reject the claim.

      Note:

      The taxpayer's address must be on either Line 5 of FMS Form 197 or Line 1 of Form 8546. If the taxpayer requests payment via Electronic Funds Transfer (EFT), the address is also required.

    3. If the taxpayer requests payment via Electronic Funds Transfer (EFT) but FMS Form 197 is incomplete, issue a check to the taxpayer.

    4. If the claim will be paid by check, enter the taxpayers mailing address on FMS Form 197 on Line (5), Agency/Office Mailing Address.

    5. When a signed FMS Form 197 is received from the taxpayer, enter a unique claim number (also called an Agency Reference Number) on each FMS Form 197 on the Claim No. line. The claim number will be the acronym for the Submission Processing Campus followed by the last two digits of the calendar year and a sequential number. For example, the first claim submitted by Kansas City Submission Processing Campus in 2004 will be KCSPC-04-1, the second claim KCSPC-04-2, etc.

    6. Prepare Letter 2180(P) or IDRS Correspondex Letter 2180C to forward claims to BFC. Attach a photocopy of the signed 8546, and the related signed FMS Form 197.

    7. If more than one FMS Form 197 is being sent to BFC, attach Form 3210, Document Transmittal. List the name, TIN and settlement amount of each claim on Form 3210.

    8. Enter a unique tracking number on each Form 3210 on the transmittal code line. The tracking number will be the acronym for the Submission Processing Campus followed by the last two digits of the calendar year and a sequential number. Example: the first F3210 submitted to BFC by Austin Submission Processing Campus in 2007 will be T-AUSPC-07-1, the second F3210 sent to BFC T-AUSPC-07-2, etc.

    9. Forward Letter 2180(P) or IDRS Correspondex Letter 2180C and Form(s) 8546 and 197 to the Submission Processing Campus Director or his designee for signature. Each FMS Form 197 must be signed. Under Delegation Order 23, the Directors authority may be redelegated no lower than to first line supervisors.

    10. Place a photocopy of the signed FMS Form 197 in the case file.

    11. Mail Letter 2180(P), Form 3210, the original signed FMS Form 197, and related photocopy of Form 8546 to BFC.

      Note:

      If FMS Form 197 is completely filled out, Form 8546 does not have to be sent to BFC. The FMS Form 197 must have the taxpayer's TIN, address and original signature.

    12. Record in the case file the date Letter 2180(P) or IDRS Correspondex Letter 2180C is mailed to BFC. Return the case to the holding file described in (6) above.

    13. Retain case files for approved claims in the unit for one year after preparing FMS Form 197. These files may then be retired to Federal Records Center (FRC) and destroyed after three years per IRM 1.15.29, Records Control Schedule for Service Center Operations. If file is needed from FRC, copy of Form 135, Records Transmittal and Receipt is maintained in Accounting Function.

  15. If the claim meets all of the above criteria but is approved for a different amount than what is shown on Form 8546, then:

    1. Prepare FMS Form 197 using the information provided by the taxpayer on Form 8546.

    2. Prepare Letter 2179(P) or IDRS Correspondex Letter 2179C. Attach the original plus two copies of FMS Form 197 and a business reply envelope and mail to the taxpayer.

    3. Notate in the case file the date Letter 2179(P) or IDRS Correspondex Letter 2179C was mailed.

    4. When signed copies of Forms 197 are received from the taxpayer, assign a claim number and place one copy of the signed FMS Form 197 in the case file.

    5. Prepare Letter 2180(P) or IDRS Correspondex Letter 2180C and attach FMS Form 197. DO NOT attach a photocopy of Form 8546 in these cases since the taxpayers signature is present on FMS Form 197. Continue processing as outlined in (14)g through (14)l above.

  16. BFC will accept both formats of FMS Form 197. Send claims to:

    Internal Revenue Service
    Beckley Finance Center
    Miscellaneous Programs Unit
    PO Box 9002
    Beckley, WV 25801–9002

    Overnight Address:
    110 North Heber St.
    Beckley, WV 25802

  17. BFC takes two to four weeks to process a claim. They will not notify the campuses that a claim has been paid. Campuses must wait a minimum of two weeks from the date the claim was submitted to BFC before inquiring about the status of a claim. Status information can be obtained from BFC via written request or via telephone at (304) 254-3300.

  18. When requesting the status by telephone or in writing (to the above address), the following information must be provided: the name of the SP campus, transmittal code from the Form 3210/FMS Form 197 submitted with claims to BFC, the accurate spelling of the case name, the date the claim was sent and the amount of the award.

  19. Claims not covered under Policy Statement 5-39 can be considered under the discretionary authority of the Small Claims Act (SCA) by the IRS Claims Manager. See Delegation Order (DO) 1-4 (Rev 1). Instruct the taxpayer to send claims to IRS Claims Manager:
    IRS Office of Chief Counsel, GLS
    P.O. Box 7410
    Assoc. Chief Counsel
    Washington DC 20224

    Note:

    If you receive F8546 from TAS, instruct them to send it to the above address using F3210.

3.17.10.6  (01-01-2013)
Over the Counter Network (OTCnet)

  1. OTCnet is a secure web-based application developed by the Federal Reserve Bank of St. Louis for the U.S. Treasury. OTCnet was released to IRS on March 19, 2011. The OTCnet system integrates the functionality of Paper Check Conversion Over the Counter (PCCOTC) and Treasury General Account Deposit Report (TGAnet).

    1. OTCnet will upgrade paper check conversion processing, so that it can be done end to end over the internet without the need for special software.

    2. OTCnet will eventually replace CA$HLINK II.

  2. Designated employees in the Accounting Operation DCF function will be Agency Viewers. As an Agency Viewer, you will be able to retrieve the confirmed deposits and adjustments, view and search prior deposits and adjustments, and view business reports. A viewer may not be assigned any other roles in OTCnet.

  3. All OTCnet users must complete the training provided on the FMS OTCnet web site prior to being given access to OTCnet.

    1. A web based site to provide guidance and training can be found at the FMS OTCnet website at: http://ww.fms.treas.gov/otcnet/training.html.

    2. The OTCnet website will be the source of your training. The OTCnet Agency Viewer Manual should be used for instructions on accessing OTCnet, searching adjustments and viewing reports.

    3. For questions or assistance using OTCnet, you may contact your Local Security Administrator or the Treasury OTC Support Center at:
      Phone: (866) 945–7920 Toll Free.
      Email: FMS.OTCChannel@citi.com.

    Note:

    The training web site is for all agencies using OTCnet and is not customized for any one agency.

3.17.10.6.1  (01-01-2013)
Accessing OTCnet

  1. If you have been identified as a OTCnet user, your Local Security Administrator (LSA) will need to create your profile for OTCnet. After completion of the online training course, each user must complete the OTCnet User Authorization Form.

    • The OTCnet User Authorization Form captures information needed to set up an employee as an agency user in OTCnet. Original signature required on form.

    • The OTCnet User Authorization and Rules of Behavior forms can be obtained from your Campus LSA.

    • Your manager will submit your OTCnet User Authorization Form to your LSA to be granted access to OTCnet.

  2. Once you have been assigned OTCnet permission, you will receive three e-mails. The first e-mail will provide your user ID; the second will provide your temporary password and the last will provide your permission in OTCnet. After you receive a user ID and password, you must login to the TWAI to change your temporary password and provide answers to your secondary authentication questions.

  3. See Exhibit 3.17.10-17 OTCnet User Standard Operating Procedures (SOP), Agency Viewer, for specific guidance on the following procedures:

    • All User Procedures

    • Initial Sign In

    • Password Maintenance

    • Password Rules

    • OTCnet Contingency

    • Agency Viewer Procedures

    • View Reports

      Note:

      The SOP can also be found at: http://www.fms.treas.gov/otcnet/index.html.

3.17.10.6.2  (01-01-2013)
Adjustments and Reports

  1. OTCnet may be accessed on a daily basis to search for adjustments under the Manage Deposit Menu. The following searches may be performed: Search Adjustments by Debit Adjustment, Credit Adjustment, Return Item Adjustment or Original Date of Deposit.

  2. A daily report of anticipated adjustment inventory may be viewed or printed by selecting the Adjustments by Agency Endpoint under the Business Reports Menu.

    The source document will be sent to the campus for processing. Do not perform any activity on an adjustment prior to receiving the source document. Adjustments will be processed according to the procedures in IRM 3.17.10 (Dishonored Check File and Unidentified Remittance File).

Exhibit 3.17.10-1 
Form 11358, Excess Collection Unpostable Conditions

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Exhibit 3.17.10-2 
Table of Valid TC/MFT/Doc Codes (BDAPL)

The chart below shows the valid transaction codes(TC), MFT codes and document codes for CC BDAPL.

1 = valid as 1st (primary) TC only.

2 = valid as 2nd (secondary) TC only.

3 = valid as 3rd (tertiary) TC only.

X = TC valid for the specified doc code.

CC BDAPL Transaction Codes
    280 611 621 641 661 671 681 682 691 695 721
Doc
Codes
24 2 X, 1   1 2 X, 1 X, 1 X, 3 X, 1    
45 2                   X
87 2 1 X 1 X 1 1 3 1 X  
BMF
MFTs
01 2 1   1   1 1 3 1   1
02 2 1 1 1 1 1 1 3 1   1
03 2 1   1   1 1 3 1   1
04 2 1   1   1 1 3 1   1
05 2 1 1 1   1 1 3 1   1
06 2 1   1   1 1 3 1   1
08 2 1   1   1 1 3 1   1
09 2 1   1   1 1 3 1   1
10 2 1   1   1 1 3 1   1
11 2 1   1   1 1 3 1   1
12 2 1   1   1 1 3 1   1
13 2 1   1   1 1 3 1 1 1
14 2 1   1   1 1 3 1 1 1
15 2 1   1   1 1 3 1   1
16 2 1   1   1 1 3 1   1
17 2 1   1   1 1 3 1 1 1
33 2 1 1 1 1 1 1 3 1   1
34 2 1 1 1   1 1 3 1   1
36 2 1       1 1 3 1   1
37 2 1   1   1 1 3 1   1
44 2 1   1   1 1 3 1   1
46 2 1           3      
50 2 1   1   1 1 3     1
51 2 1   1   1 1 3     1
52 2 1   1 1 1 1 3     1
58 2 1   1   1 1 3     1
60 2 1   1   1 1 3     1
61 2 1   1   1 1 3     1
62 2 1   1   1 1 3     1
63 2 1   1   1 1 3     1
64 2 1   1   1 1 3     1
67 2 1       1 1 3 1   1
74 2 1   1   1 1 3 1 1 1
76 2 1   1   1 1 3 1 1 1
77 2 1   1   1 1 3 1    
78 2 1   1   1 1 3 1    
IMF
MFTs
29 2     1   1 1       1
30 2 1   1 1 1 1 3 1   1
31 2 1   1 1 1 1 3 1   1
55 2 1   1   1 1 3 1 1 1
 
NMF All 2 1   1   1 1 3 1   1
NMF MFT 29 is invalid with TCs 611, 682, and 691.
NMF MFT 07 is invalid with TC 721.

Exhibit 3.17.10-3 
CC BDADDR / CC BDADD

Refer to IRM 2.4.25 for specific command code information.

(1) Input CC BDADDR to request CC BDADD format.

(2) CC BDADD is used to establish a dishonored check record on the Dishonored Check File.

CC BDADDR Input Screen Format

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Response: CC BDADD. A new CC BDADD format will be displayed after the CC BDADDR input screen.

This image is too large to be displayed in the current screen. Please click the link to view the image.
CC BDADD Input Format
Line # Description
Line 1 BDADD - will remain on the screen.
ITEM COUNT - shows how many checks have been added. The count will change with each check entered.
RUNNING TOTAL - must balance to the Form 5515. The total will change with each check entered.
   
Line 2 DISHONORED CHECK NUMBER - Enter the DCN. The number will repeat itself for the twelfth, thirteenth, and fourteenth digits. These three digits (004) are the check number. Input the three-digit check number for each check.
RC - Enter the reason code. The reason code tells why the check is dishonored. See the reason code chart in IRM 3.17.10.2.3.
EMPASGNUM - Overlay with the employee assignment number if different from the employee of the person who is inputting CC BDADD.
   
Line 3 AMOUNT OF THE CHECK - Enter the encoded money amount at the bottom of the check.
   
Line 4 TRACE ID NUMBER - The 20 digit Trace ID Number must be present.
   
Line 5 TYPE OF THE CHECK - Enter one of the following: "REGU" for a regular check; "SPLIT" for a split check; "MULT" for a multiple check; or, "MUSP" for a split multiple check.
IRS RECEIVED DATE - Enter the SF5515 Debit Voucher date of deposit (MMDDYYYY) on which the payment was received by IRS. This date cannot be later than the current date or earlier than the immediately prior year. If the IRS-received date is illegible or not on the remittance, use the earliest readily discernible date after IRS would have received the payment. i.e., SF 5515 voucher date. This date will repeat itself for each item in the group being added; therefore, care must be taken to overlay the correct date for each payment.
   
Line 6 FIRST NAME LINE - Enter the first name line shown on the check so that the name control underlined on the check is entered first. The length of the First Name Line is limited to thirty-five (35) characters.
   
Line 7 SECOND NAME LINE - Enter the second name line shown on the check. The length of the Second Name Line is limited to thirty-five (35) characters. This line need not be completed if the check shows no second name line, but must be completed for a foreign address.
   
Line 8 STREET ADDRESS - Enter the street address shown on the remittance. If entry is made on this line, Line 9 must be completed.
   
Line 9 CITY, STATE, AND ZIP CODE - Enter the city, state, and ZIP Code shown on the check. A major city code is a valid City/State/ZIP input. This line must be completed if there is an entry on Line 8.
   
Line 10 TAXPAYER IDENTIFICATION NUMBER (TIN) - Enter the Employer Identification Number (EIN) or Social Security Number (SSN), if available. Line 10 must be completed if a transcript is desired.
   
Line 11 MRS-IND - Enter YES if a transcript is desired. If YES is entered on Line 11, Line 10 must be completed.
   
Line 12 ERROR MESSAGES - If needed, an appropriate error message may appear on this line. If no error message is required, REQUEST COMPLETED will appear on this line.
   
Note: See IRM 2.4.25, Command Codes BDADDR, BDADD, BDAPLR, BDAPL, BDOUTR, BDOUT, BDENT and BDINQ, for specific instructions and error messages.
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Exhibit 3.17.10-4 
CC BDOUT

Refer to IRM 2.4.25 for specific command code information.

(1) Input CC BDOUTR to request CC BDOUT format. A new CC BDOUT format will be displayed after each CC BDOUT entry.

(2) CC BDOUT is used to correct or void an erroneous DC record which is on the DCF.

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CC BDOUT Input Format
Line # Description
Line 1 BDOUT
Line 2 APPLICATION TYPE - Enter type of void/application.
D = Unidentified Remittance File Check.
I = Not IRS Check (only if check has been deposited by IRS).
R = Redeposited Check.
V = Void.
X = Missing Check.
Z = Change Money Amount.
P = Partial Void.
A = Payment for Alcohol, Tobacco or Firearms.
  DISHONORED CHECK NUMBER - Enter the DCN.
If D, Z or P are entered on Line 2, Line 4 must be considered.
If V or Z are entered on Line 2, Line 5 must be completed.
   
Line 3 NAME CONTROL - Enter the name control as shown on the DCF.
   
Line 4 MONEY AMOUNT - An entry on Line 4 corrects an erroneous money amount previously entered.
If D is entered on Line 2, leave Line 4 blank if the entire balance amount is unidentified. If it is partially unidentified, enter the amount that is unidentified.
If Z or P is entered on Line 2, a money amount must be entered on Line 4.
   
Line 5 REMARKS - If V or Z is entered on Line 2, enter the reason why the DCF record is being changed or voided on Line 5.
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Exhibit 3.17.10-5 
CC BDAPLR / CC BDAPL

Refer to IRM 2.4.25 for specific command code information.

(1) Input CC BDAPLR to request CC BDAPL format.

(2) CC BDAPL is used to record the application of a dishonored check (in whole or in part) from the DCF to a specific tax module.

CC BDAPLR Input Screen Format

This image is too large to be displayed in the current screen. Please click the link to view the image.

Response: CC BDAPL. A new CC BDAPL format will be displayed after the CC BDAPLR input screen.

This image is too large to be displayed in the current screen. Please click the link to view the image.
CC BDAPL Input Format
Line # Description
Line 1 BDAPL – will remain on the screen.
   
Line 2 TYPE OF APPLICATION CODE - Enter "M" for master file, if the document is for IMF or BMF. Enter "N" for NMF.
DISHONORED CHECK NUMBER - Enter the Dishonored Check Number.
   
Line 3 NAME CONTROL FROM CHECK - Enter the name control as recorded on the DCF. CC BDAPL updates the name control on the DCN to the application name control. Any future action requires the use of the "new" name control. Document the "new" name control if changed when inputting split remittance.
NAME CONTROL OF DOCUMENT - Enter the name control from return (must match name control on master file). Enter for "M" type application only.
RECEIVED DATE - Enter the received date to agree with the date of the credit transaction being reversed.
DLN - Enter the DLN of the return or the NMF Unit Ledger Card ID.
   
Line 4 PRIMARY TRANSACTION CODE - Overlay 1TC with the valid transaction code: 611, 621, 641, 661, 671, 681, 691, or 721. ( Exhibit 3.17.10-2, Table of Valid TC/MFT/Doc Cd (BDAPL), for valid combinations.)
MONEY AMOUNT OF PRIMARY TRANSACTION CODE - Overlay $s with the amount of tax credit to be reversed. $s must be completed if any entry is made on Line 4.
OTHER PENALTY AMOUNT - If entered, overlay $s with amount which cannot be greater than $999,999,999.99.
   
Line 5 SECONDARY TRANSACTION CODE - Format will contain a generated TC 280.
MONEY AMOUNT OF SECONDARY TRANSACTION CODE- If correct amount of penalty will not be automatically generated or if no penalty is to be assessed, overlay $s with correct amount of penalty to be assessed. Zero cents (.00) is the correct entry when no penalty is to be assessed.
TERTIARY TRANSACTION CODE - Enter TC 682 if designated interest payment is to be reversed.
MONEY AMOUNT OF TERTIARY TRANSACTION CODE - Overlay $s with amount of designated interest payment to be reversed.
   
Line 6 TAXPAYER IDENTIFICATION NUMBER - Enter the TIN followed by a valid File Source. Line 2, Item A, must agree with the File Source entered here.
DISHONORED CHECK NOTICE INDICATOR - Enter "I" if Form 2287(CG), Notice of Check Not Accepted by Bank, is to be issued. Enter "S" if notice is to be suppressed. Note: Form 2287CG is IDRS Notice 587.
DOCUMENT CODE - Enter the appropriate Document Code: "24" for IDRS NMF; "45" for refund repayments; or " 87" for regular MF and non-IDRS NMF.
MFT CODE - Enter the MFT Code.
TAX PERIOD - Enter the tax period.
EMPLOYEE PLAN/REPORT NUMBER - Enter "y" and employee plan/report number of MFT codes 46, 74 or 76 only. Format is PPP. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.
DESIGNATED PAYMENT CD - Must enter 49, 50 or 51 if Primary TC is 695.
   
Line 7 REMARKS - Enter the necessary information. For example, if an incorrect TIN was used on the return and the correct TIN has been found, enter this information here. The voucher number and date can also be entered for future use in locating worksheets.
   
Line 8 NMF 23C DATE, LOCATION CODE AND DOCUMENT LOCATOR NUMBER - Entries must be made on this line if Type of Application Code shown in Line 2A is "N" .
   
Line 9 NAME - Enter the name as shown on the return or CC ENMOD from IDRS, placing the surname first followed by a comma and first name(s).
   
Line 10 SECOND NAME LINE - Enter as shown or if not present, leave blank. CC BDAPL updates entity information upon application. If a second name line or street address is present on the file which is not part of the new address and will not be overlaid, it must be deleted by using CC BDENT or it will appear on all future communications with the taxpayer. Once the case is closed from the DCF, CC BDENT cannot be used to make entity changes.
   
Line 11 ADDRESS - Enter as shown from the return or CC ENMOD. Changes to the address can also be made in the following situations:
a. Change the address if the taxpayer positively requests the change. Underlining, circling or annotating the printed address on the check constitutes a positive request.
b. Change the address if correspondence (including notices and envelopes) sent by the Service that requires a response is returned by the taxpayer with corrections marked to the taxpayer's address information. Note: The correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature on the correspondence is not required.
c. An address change can be taken from the taxpayer over the telephone only IF the information is received while working another issue (for example, talking to the taxpayer about another tax-related issue). The history sheet must be annotated and remain with the case. If for any reason you do not feel comfortable taking the information over the telephone, ask the taxpayer to submit the information in writing. If the only issue is an address change, the change must be submitted in writing.
d. Only if no other address is shown, use the check address.
   
Line 12 CITY, STATE AND ZIP CODE - The name and address information is extracted from the TIF. If the name and address is not on the TIF, then the address is extracted from the DCF database. If the address information is incorrect, the information will need to be overlaid with the correct information.
Note: When entering a foreign address, enter a # sign in the first position of the City/State/ZIP Code line.

Exhibit 3.17.10-6 
CC BDENT

Refer to IRM 2.4.25 for specific command code information.

(1) CC BDENT is used to update the FIRST NAME LINE, SECOND NAME LINE, STREET ADDRESS, CITY-STATE-ZIP, TIN, EMPLOYEE NUMBER and TRACE ID NUMBER of a record on the DCF.

CC BDENT Input Screen Format

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CC BDENT Input Format
Line # Description
Line 1 BDENT
   
Line 2 NAME CONTROL - Enter the name control presently on DCF.
   
LINE 3 CONTROL NUMBER - Enter the DCN.
   
Lines 4-11 ENTITY ELEMENTS BEING CHANGED - Lines 4-10 are used to update the First Name Line; Second Name Line; Street Address; City, State and Zip Code; TIN, Employee Number and/or Trace ID Number. The first element being changed must be entered on line 4; the next element being changed must appear on Line 5 and so on.
a. First Name Line - enter 1N/ immediately followed by the new first name line on Line 4. The length of the first name line is limited to thirty-eight (38) characters. A new name control will be generated for the record from the first four characters entered after 1N/.
b. Second Name Line- enter 2N/ immediately followed by the new second name line on the next unused line of the format. The length of the second name line is limited to thirty-eight (38) characters. To delete an existing second name line from DCF, enter SECOND NAME LINE DELETE IND 2N/ZZ.
c. Street Address - enter ST/ immediately followed by the new street address on the next unused line of the format. To delete an existing street address from DCF, enter STREET-ADDR-DELETE-IND ST/ZZ.
d. City, State and ZIP Code - CY/ immediately followed by the new date on the next unused line of the format. A major city code is valid City/State/ZIP input.
e. TIN - enter TN/ immediately followed by the TIN (including hyphens) on the next unused line of the format.
f. Employee Number – enter EN/ immediately followed by the new employee number on the next unused line of the format. The length of the employee number is limited to thirteen (13) characters. (No history recorded.)
g. Trace ID Number – TI/ immediately followed by the new Trace ID Number on the next unused line of the format. The length of the Trace ID Number is limited to twenty (20) characters.
h. Comments – enter CM/ immediately followed by remarks not to exceed thirty-eight (38) characters.

Note:

Any combination of five changes can be done on the same BDENT screen. Additional changes would require an additional CC BDENT input.

   
Line 13 Error Messages- If needed, an appropriate message will be displayed on Line 13. If no error message is required, REQUEST COMPLETED will appear on this line.
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Exhibit 3.17.10-7 
CC BDINQ

Refer to IRM 2.4.25 for specific command code information.

(1) CC BDINQ is used to display an entire DC record. All data on the DCF pertaining to a particular dishonored check will be displayed. This consists of the basic dishonored check data plus history records of all actions taken and current status.

CC BDINQ Input Screen Format

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CC BDINQ Input Format
Line # Description
Line 1 BDINQ.
   
Line 2 DISHONORED CHECK NAME CONTROL.
   
Line 3 MONEY AMOUNT - Enter the amount of the check with decimal point and comma(s) when present.
   
Line 4 DISHONORED CHECK CONTROL NUMBER - Enter the complete DCN or its first two digits.
   
Line 5 ERROR MESSAGES - If needed, an appropriate error message as described in IRM 2.4.25 may appear on this line.
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Exhibit 3.17.10-8 
CC FMADD / CC URADD

Refer to IRM 2.4.24 for specific command code information.

(1) Input CC FMADD to request CC URADD format.

(2) CC URADD is used to establish a record of an unidentified remittance in the URF.

CC FMADD Input Screen Format

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Response: CC URADD will be displayed after the CC FMADD screen is transmitted.

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CC URADD Input Format
Line # Description
Line 1 CC URADD.
ITEM COUNT - The item count shows how many credits have been added. The count will change with each credit entered.
RUNNING TOTAL - The running total shows the dollar amount of all credits entered.
   
Line 2 UR CONTROL NUMBER - Overlay "Ns " with the Unidentified Remittance Control Number (URCN), using the original DLN as the URCN on Adjustment, Reject, Nullified, Reject, Nullified Unpostable and Non-Master file cases. Julian Date "999" is valid on the URF. The URCN on cases having no previous DLN will be numbered.
Digits 1-2 - Area Office or Submission Processing Campus (do not use the dump district number).
Digits 3-5 - Will be 009 if the payment was added by the Deposit section. Otherwise, it will be the tax class and doc code of the payment DLN.
Digits 6-9 - Sunday Julian Date of the current week, regardless of deposit date; or date described in IRM 3.17.10.3.2(1).
Digits 9-11 - 000-599.
Digits 12-13 - Serial Number
Digit 14 - Current Year
  SOURCE CODE - Enter source code, identifying area in which UR record originated:
AD - Adjustments
AM - Accounts Maintenance
CO - Collection
DO - District Office
EF - Electronic Fund Transfers
FD - Federal Tax Deposit
NM - Non-Master File
NU - Nullified Unpostables
OT - Other
P1 - Project 1
P2 - Project 2
RJ - Reject Function
ST - Statute
UR - Clearing and Deposit Function
  STATUS CODE - Overlay status code, reflecting the classification of the UR record:
OPEN - Remittance is not identified and requires research to locate correct tax module. If left blank, status will be OPEN.
IDEN - Remittance is identified and requires no research. Credit cannot be applied to its correct tax module. For example, a prepayment on a new tax form for which master file programming is not yet complete.
  EMPLOYEE ASSIGNMENT NUMBER - Overlay with Employee Assignment Number if different from employee number of person using CC URADD.
   
Line 3 AMOUNT - Overlay "$s" with UR amount, starting with first $ on left, including the period and comma(s) i.e., 157.32$$$$$$.
   
Line 4 TYPE OF PAYMENT - Enter type of remittance received:
BC - Business Check
CA - Cash (including cash conversions)
CC - Cashier's Check
FD - Federal Tax Deposit (including Certificates of Deposit)
GC - Government Check
MO - Money Order
PC - Personal Check
UK - Unknown
  RECEIVED DATE - Enter current or prior received date (not more than one year old) in MMDDYYYY format. Cannot be future date.
UR NOTICE INDICATOR - Indicate whether a 3731(CG) notice is to be generated:
Y - Notice to be computer-generated
Blank - No notice to be sent
   
Line 5 1ST NAME LINE - Overlay with first name line of the taxpayer. The first four positions identify the name control determined as directed in IRM 3.17.10.1.7. Use a comma in the first name line only when the order has been changed to create the correct name control, i.e., Carter Rvoc Tr., John. The length of 1st Name Line is limited to thirty-five (35) characters. These instructions must be followed explicitly so that the taxpayer is addressed properly in the generated 3731(CG) letter.
   
Line 6 2ND NAME LINE - Overlay with second name line, if there is one. Length of name line is limited to thirty-five (35).
   
Line 7 STREET - Overlay with street address, if known.
   
Line 8 CITY/STATE/ZIP CODE - Overlay with city, state, and ZIP Code. These must be present if a 3731(CG) is to be generated. Input as follows: City, comma, 2-position standard state abbreviation, space, ZIP Code. The city cannot exceed 16 characters in length. A pound sign (#) in the first position indicates a foreign address and requires only that the rest of the input field not be blank. A Major City Code followed by a blank and the ZIP Code is valid City/State/ZIP Code input.
   
Line 9 PAYMENT INFORMATION - Must be present. Entry can include check number, name of bank, telephone number, and any potentially helpful entity information such as filing status or type of return.
   
Line 10 2ND PAYMENT INFORMATION - Optional; used as continuation of line 9, if needed.
   
Line 11 TIN - Overlay in SSN/EIN format, if known.
   
Line 12 MFT - Overlay with MFT, if known, and line 11 is completed.
TAX PERIOD - Overlay with tax period if known, and line 11 is completed.
   
Line 13 TRACE ID NUMBER - The 20 digit Trace ID Number must be present.
   
Line 14 ERROR MESSAGES - Any messages denoting erroneous input will appear here. See IRM 2.4.24 for messages, error conditions, and solutions.
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Exhibit 3.17.10-9 
CC URINQ

Refer to IRM 2.3.20 for specific command code information.

(1) CC URINQ is used to request for display one or more records in the URF, based on the data elements input.

(2) Research can be done in 3 ways: by amount of the remittance, by name control, or by DLN.

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CC URINQ Input Format
Line # Description
Line 1 CC URINQ.
   
Line 2 NAME CONTROL - Enter the valid name control from the UR case or form as directed in Document 7071 or 7071-A. Enter "UNKN" if the case has been added to the URF as "Unknown " . Leave line 2 blank if the name control is not known. An inquiry produces a display of the complete UR record.
   
Line 3 REMITTANCE AMOUNT - Enter the money amount, including decimal point and comma(s). Leave line 3 blank if the amount is not known. An inquiry to the amount file produces a display of only the name control and URCN.
a. To display the complete record, place an asterisk in front of the record.
b. To return to the menu, move to Line 2 and transmit. The menu will return with the pound sign (#) in front of the last complete record retrieved.
   
Line 4 DOCUMENT LOCATOR NUMBER - Enter the 2-digit file location number or the complete URCN. An inquiry produces a display of the complete UR record.
   
Line 13 ERROR MESSAGES - An appropriate error message as described in IRM 2.3.20 may appear in this line.
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CC URINQ Response Record

Fields are only completed if information was known at time record was entered on the URF or information has been added via CC URENT. The Name Control and amount will always appear.

CC URINQ Input Format
Line # Description
Line 1 1ST NAME LINE - The first four positions identify the name control.
   
Line 2 2ND NAME LINE
   
Line 3 STREET ADDRESS
   
Line 4 CITY/STATE/ZIP CODE
   
Line 5 UR CONTROL NUMBER - Original DLN of the credit received from Adjustments, Rejects, Nullified Unpostables or Non-Master File. If credit had no previous DLN, it will carry an "009" number assigned by the Cashier Function.
UR CAMPUS CODE - A generated 2-digit code identifying the campus entering the payment to the URF.
AMOUNT - Original amount of credit added to the URF.
   
Line 6 TRACE ID NUMBER
   
Line 7 IRS-RECEIVED DATE
TIN
ENTRY DATE TO THE URF
EMPLOYEE ASSIGNMENT NUMBER
   
Line 8 AMOUNT PAYMENT INFORMATION - Current amount of credit on the URF.
   
Line 9 NOTICE INDICATOR
SOURCE CODE
STATUS CODE
TYPE OF PAYMENT

Exhibit 3.17.10-10 
CC URENT

Refer to IRM 2.4.24 for specific command code information.

(1) Use CC URENT to do one or more of the following: change the status of an UR record from OPEN to IDEN, or IDEN to OPEN; to record follow-up actions; to generate a 3731(c) notice; to change the received date of a record; or to add/change the employee number, or SSN/EIN.

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CC URENT Input Format
Line # Description
Line 1 CC URENT
     
Line 2 NAME CONTROL - Overlay name control as shown on the UR record
     
Line 3 UR CONTROL NUMBER - Type in the UR control number as shown on the UR record.
NOTICE INDICATOR - Indicate whether a 3731(CG) notice is to be sent.
  Y
blank
Notice to be computer-generated
No notice to be sent
     
Lines 4-10 URF ELEMENT CHANGES - Lines 4-10 are used to make changes. The first element being changed or added must be entered on Line 4. The next element being changed or added must be entered on Line 5, etc.
  a. New name line - If being changed, enter "N1/" immediately followed by the new name line. Length of name line is limited to thirty-five (35) characters. A new name control will be generated for the URF record. The first position of the new name line must be alpha or numeric.
  b New second name line – If being changed, enter "N2/" immediately followed by the new second name line. First position must be alpha or numeric. Length of name line is limited to thirty-five (35) characters.
  c. New street address – enter "ST/" immediately followed by the new street address. The first position of the new address line must be a valid character other than a blank. Optional when changing city/state ZIP.
  d. New city/state/ZIP Code - Must be present when electing "Y" on Line 3 if there is no city/state/ZIP Code present on the URF for this account. Enter "CS/" immediately followed by the new entry of one of the following:
1. A valid major city code followed by a blank and the ZIP Code.
2. City, comma, 2-position standard state abbreviation, blank, ZIP Code.
3. Pound sign (#) in position one followed by the foreign address.
  e. New status code - Enter literal "SC/" immediately followed by the appropriate status change. Values are:
1. OPEN – remittance unidentified.
2. IDEN – remittance identified.
3. FROZ – record is frozen.
All other status changes are generated.
  f New narrative - Enter "NR/" immediately followed by new entry. First position cannot be blank. The field is limited to 38 characters (N/R + 35 characters).
  g. New employee assignment number - Enter "EN/" immediately followed by new 10-digit employee assignment number. Must be numeric.
  h. New IRS-received date - Enter "RD/" immediately followed by the correct received date in MMDDYYYY format. (It is acceptable to change the received date to over one year. However, if it is not closed or changed back, it will drop to Account 6800, Excess Collection, at month's end.)
  i. New Taxpayer Identification Number - Enter "TN/" immediately followed by new Social Security or Employer Identification Number. Field cannot exceed 11 characters.
  j. Trace ID Number - Enter "TI/" immediately followed by new 20 digit Trace ID Number.
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Exhibit 3.17.10-11 
CC UROUT (Z, V, and D)

Refer to IRM 2.4.24 for specific command code information.

(1) Use CC UROUT in conjunction with a TYPE-OF-APPLICATION code (Z, V or D) to record a dishonored check, or to correct an erroneous UR record, or to void a record.

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CC UROUT "Z" Format
Line # Description
Line 1 CC UROUT - Overlay URAPL
   
Line 2 APPLICATION CODE - Enter "Z" .
UR CONTROL NUMBER - must match the number on the UR record.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control which must match the name control on the UR record and cannot be UNKN. "NCAP" is not used with a UROUT input.
   
Line 4 AMOUNT - Beginning with the first "$" sign, overlay with the corrected amount.
   
Line 9 REMARKS - Overlay with the reason for the correction.
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CC UROUT "V" Format
Line # Description
Line 1 CC UROUT - Overlay URAPL.
   
Line 2 TYPE OF APPLICATION CODE - Enter "V" .
UR CONTROL NUMBER - Must match the number on the UR record.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control which must match the name control on the UR record and cannot be UNKN. "NCAP" is not used with a UROUT input.
   
Line 9 REMARKS - Overlay with the reason for voiding the UR record.
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CC UROUT "D" Format
Line # Description
Line 1 CC UROUT - Overlay URAPL.
   
Line 2 TYPE OF APPLICATION CODE - Enter "D" .
UR CONTROL NUMBER - Must match the number on the UR record.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control which must match the name control on the UR record and cannot be UNKN. "NCAP" is not used with a UROUT input.
   
Line 4 AMOUNT - Leave money amount blank if entire amount is being dishonored. If partial application has been made, enter the remaining amount to be dishonored.

Exhibit 3.17.10-12 
Valid URAPL "M" Transaction Table

Refer to IRM 2.4.24 for specific command code information.

(1) Use CC URAPL in conjunction with a TYPE-OF-APPLICATION code (M, N or T) to record the application of part or all of an Unidentified Remittance record.

The chart below shows the valid transaction codes (TC), MFT codes and document codes for CC URAPL.

1 = valid as 1st (primary) TC only.

2 = valid as 2nd (secondary) TC only.

3 = valid as 3rd (tertiary) TC only.

  CC URAPL Transaction Codes  
    170 180 200 270 360 570 610 620 640 650 660 670 678 680 690 694 720
Doc
Codes
17 2 2 2 2 2 2 1,3 1,3 1,3 1 1,3 1,3 1,3 1 1,3 1  
45                                 1
BMF
MFTs
01   2   2 2 2 1,3   1,3 1   1,3   1 1,3   1
02 2     2 2 2 1,3 1,3 1,3   1,3 1,3   1 1,3   1
03   2   2 2 2 1,3   1,3 1   1,3   1 1,3   1
04 2     2 2 2 1,3   1,3     1,3   1 1,3   1
05       2 2 2 1,3 1,3 1,3   1,3 1,3   1 1,3   1
06         2   1,3   1,3     1,3   1 1,3   1
07           2 1,3         1,3   1 1,3   1
08         2   1,3   1,3     1,3   1 1,3   1
09   2   2 2 2 1,3   1,3 1   1,3   1 1,3   1
10   2   2 2 2 1,3   1,3 1   1,3   1 1,3   1
11   2   2 2 2 1,3   1,3 1   1,3   1 1,3   1
12   2   2 2 2 1,3   1,3     1,3   1 1,3   1
13         2 2 1,3   1,3     1,3   1 1,3 1 1
14   2   2 2 2 1,3   1,3 1   1,3   1 1,3   1
15       2 2 2 1,3   1,3     1,3   1 1,3   1
16 2     2 2 1,3 1,3   1,3     1,3   1 1,3   1
17 2       2 2 1,3   1,3         1 1,3   1
33 2     2 2 2 1,3 1,3 1,3   1,3 1,3   1 1,3   1
34 2     2 2 2 1,3 1,3 1,3   1,3 1,3   1 1,3   1
36         2 2 1,3         1,3     1,3   1
37       2 2 2 1,3   1,3     1,3   1 1,3   1
44 2     2 2 2 1,3   1,3   1,3 1,3   1 1,3   1
46             1,3         1,3     1,3   1
50       2 2 2 1,3   1,3     1,3   1     1
51       2 2 2 1,3   1,3     1,3   1     1
52       2 2 2 1,3   1,3   1,3 1,3 1,3 1     1
58       2 2 2 1,3   1,3     1,3   1     1
60       2 2 2 1,3   1,3     1,3   1     1
61       2 2 2 1,3   1,3     1,3   1     1
62       2 2 2 1,3   1,3     1,3   1     1
63       2 2 2 1,3   1,3     1,3   1     1
64       2 2 2 1,3   1,3     1,3   1     1
67         2 2 1,3         1,3     1,3   1
74 2       2 2 1,3   1,3         1 1,3   1
76 2       2 2 1,3   1,3         1 1,3   1
77       2 2 2 1,3   1,3     1,3   1 1,3   1
78     2 2 2 2 1,3   1,3     1,3   1 1,3   1
IMF
MFTs
29     2 2 2 22           1   1 1   1
30 2   2 2 2 2 1,3   1,3   1,3 1,3   1 1,3   1
31 2   2 2 2 2 1,3   1,3   1,3 1,3   1 1,3   1
55         2 2               1 1,3 1 1

Exhibit 3.17.10-13 
CC FMAPL / CC URAPL (M, N, and T)

Refer to IRM 2.4.24 for specific command code information.

(1) Use CC FMAPL to request the CC URAPL format. CC URAPL cannot be input to the URF if the name control on the UR record is UNKN. The name must be changed with CC URENT.

CC FMAPL Input Screen Format

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Response: CC URAPL. A new CC URAPL format will be displayed after the CC FMAPL input screen. CC URAPL are used with the following definer codes:

M - to apply a credit to a Master File account.

N - to apply a credit to a NMF account.

T - to transfer a credit to Deposit or General Fund application.

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CC URAPL "M" Format
Line # Description
Line 1 CC URAPL
   
Line 2 APPLICATION CODE - Enter "M"
UR CONTROL NUMBER - must match the number on the UR Record.
NOTICE INDICATOR - Enter "Y" if Letter 2349CG should be sent to the taxpayer. ( Figure 3.17.10-42) Enter "N" if Letter 2349CG should not be sent to the taxpayer. The field will default to "N" if no entry is made.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control. This must match the name control on the UR record and cannot be "UNKN" .
ACCOUNT NAME CONTROL - Overlay the "NCAP" with the name control of the account being credited. This must match the name control of the tax account module.
ELECTRONIC PAYMENT INDICATOR - Enter "Y" if an electronic payment is being applied. The field will default to "N" if no entry is made.
   
Line 4 PRIMARY TRANSACTION CODE - Overlay "1TC" with a valid transaction code (TC). ( Exhibit 3.17.10-12Valid URAPL "M" Transaction Table.)
PRIMARY TRANSACTION AMOUNT - Beginning with the first "$" sign, overlay with the amount including commas and decimal point, which may not exceed the balance amount in the UR record.
BYPASS INDICATOR - To apply an amount greater than the balance of the master file account to which the application is being made, overlay "N" with "Y" to override UPC 198 or 305. The field will default to "N" if no entry is made.
   
Line 5 SECONDARY TRANSACTION CODE - If a secondary TC is needed, overlay "2TC" with a valid secondary TC.
SECONDARY TRANSACTION AMOUNT - Can be present only when the primary transaction code is present.
   
Line 6 TERTIARY TRANSACTION CODE - If needed, overlay "3TC" with a valid tertiary TC.
TERTIARY TRANSACTION AMOUNT - Can be present only when the secondary transaction code is present.
   
Line 7 TIN - Overlay with the correct TIN. Enter file source literal if applicable:
Blank - Valid IMF SSN and BMF EIN.
* - Invalid IMF SSN.
N - NMF TIN.
P - Valid IMF SSN on MF with MFT 29.
X - Invalid IMF SSN with MFT 29.
V - Valid BMF SSN.
W - Invalid BMF SSN.
  DESIGNATED PAYMENT CODE - Overlay DP with the appropriated code.
   
Line 8 TAX PERIOD - Overlay "YYYYMM" with the correct Tax Period.
MFT - Overlay "NN" with the correct MFT.
PLAN/REPORT NUMBER - Enter Plan/Report Number if MFT is 46, 74 or 76. Format is NNN.
   
Line 9 REMARKS - Overlay with appropriate remarks.
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CC URAPL "N" Format
Line # Description
Line 1 CC URAPL
   
Line 2 APPLICATION CODE - Enter "N"
UR CONTROL NUMBER - must match the number on the UR Record.
NOTICE INDICATOR - Enter "Y" if Letter 2349CG should be sent to the taxpayer. ( Figure 3.17.10-42) Enter "N" if Letter 2349CG should not be sent to the taxpayer. The field will default to "N" if no entry is made.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control. This must match the name control on the UR record and cannot be "UNKN" .
   
Line 4 PRIMARY TRANSACTION CODE - Overlay "1TC" with a valid transaction code (TC). ( Exhibit 3.17.10-12, Valid URAPL "M" Transaction Table.)
PRIMARY TRANSACTION AMOUNT - Beginning with the first "$" sign, overlay with the amount including commas and decimal point, which may not exceed the balance amount in the UR record.
   
Line 7 TIN - Overlay with the correct TIN.
FILE SOURCE LITERAL - Must be "N" .
   
Line 8 TAX PERIOD - Overlay "YYYYMM" with the correct Tax Period.
MFT - Overlay "NN" with the correct MFT.
PLAN/REPORT NUMBER - Enter Plan/Report Number if MFT is 46, 74 or 76. Format is NNN.
   
Line 9 REMARKS - Overlay with appropriate remarks
   
Line 10 23C DATE OR LOCATION CODE
   
Line 11 TAX FORM NUMBER
   
Line 12 NMF IDENTIFYING NUMBER OR LEDGER ACCOUNT NUMBER
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CC URAPL "T" Format
Line # Description
Line 1 CC URAPL
   
Line 2 APPLICATION CODE - Enter "T"
UR CONTROL NUMBER - must match the number on the UR Record.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control.
   
Line 4 PRIMARY TRANSACTION AMOUNT - Input the amount of the transfer. Begin overlaying the first "R" sign with the amount to be transferred.
   
Line 9 REMARKS - Overlay with description of the transfer.

Exhibit 3.17.10-14 
CC FMREF / CC URREF

Refer to IRM 2.4.24 for specific command code information.

(1) Input CC FMREF to request CC URREF format.

(2) CC URREF is used to make a Refund application from the URF.

CC FMREF Input Screen Format

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Response: CC URREF. CC URREF format will be displayed after the CC FMREF input screen.

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CC URREF Format
Line # Description
Line 1 CC URREF
   
Line 2 UR CONTROL NUMBER - Overlay "Ns " with the UR Control Number which must match the control number on the UR record.
RETURN-FILED DATE - Should be entered in MMDDYYYY format if IRS received date is more than two years before the current date. Optional entry.
   
Line 3 UR NAME CONTROL - Overlay "NCUR " with the UR Name Control which must match the name control on the UR record and cannot be "UNKN" .
REFUND AMOUNT - Overlay "$" with the Refund Amount.
   
Line 4 PAYEE'S FIRST NAME LINE - must be present.
   
Line 5 PAYEE'S SECOND NAME - optional.
   
Line 6 PAYEE'S STREET ADDRESS - must be present.
   
Line 7 CITY, STATE, AND ZIP CODE - This information must be present. There should be a comma between the City and State and one blank space between the State and the Zip Code. A Major City Code, one blank and ZIP Code is valid City/State/ZIP Code input. Required entry.
   
Line 8 TIN-FILE-SOURCE - This is an optional entry.
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Exhibit 3.17.10-15 
URF/DCF Error Messages: Their Conditions and Solutions

Refer to IRMs 2.4.24, 2.4.25 and 2.3.20 for specific command code error messages.

Note:

The list below does not include all error messages.

Error Message Conditions Solutions
AMOUNT FIELD INVALID 1. Amount field not formatted correctly. Correct and reenter.
2. PRIMARY-TRANS-AMT in CC UROUTZ is equal to the ORIGINAL-AMT in the UR record. Correct PRIMARY-TRANS-AMT. It must be different.
3. ORIGINAL-AMT and UR-BALANCE-AMT within the record are not identical. Review/Apply info—use VOID.
APPLICATION AMOUNT EXCEEDS BALANCE An attempt has been made to apply more money out of a UR record than is available. Determine the apply amount and reenter application
DLN CHANGE INVALID FOR CC URENT An attempt has been made to change a DLN on a UR record Do not use CC URENT
DO/SC INVALID FOR THIS CENTER The DO-CD or SC-CD is not within this campus Correct and reenter.
DUPLICATE UR CONTROL NO-ADD DENIED Another exact UR-CTRL-NUM is present on the existing URF. Determine the reason for the duplicate number and reassign a different UR-CTRL-NUM and reenter, or VOID the original (existing) record if it is in error and reenter subsequent (correct) UR-CTRL-NUM after voided one has been dropped from the file.
NAME LINE INVALID NAME-LINE-1 is missing; or NAME-LINE-1 does not begin in the first position; or the first position is not alphanumeric. Enter NAME-LINE-1 beginning in the first position.
NARRATIVE MISSING OR INVALID The RE-MARKS field is all blank; or the first position is blank; or the RE-MARKS field exceeds 35 positions Begin RE-MARKS in the first position and keep them within 35 positions.
nnERRORS-CORRECT* FIELDS & REENTER One or more of the INPUT DATA fields are in error (fail to pass validity checks).
Invalid fields will be indicated by having an asterisk (*) to the right of the data field. "nn" will indicate how many fields are invalid and must be corrected.
Locate the invalid fields and correct the erroneous data and reenter.
NO UR RECORD FOUND FOR GIVEN DATA Self-explanatory. Change search or apply information and reenter.
PRIOR COMMAND CODE NOT COMPATIBLE Command Code immediately preceding the one just entered was not correct for inquiry or for processing; i.e., FMADD entered and URAPL overlaid. Determine correct command code and reenter data.
RECORD STATUS DOES NOT ALLOW APPLY An attempt has been made to change or apply an amount in a record where the status is not OPEN or IDEN. Be sure this is the record you want before taking further action. Record subsequent action taken via CC URENT.
STATUS CHANGE NOT ALLOWED An attempt has been made to change the status of a record that does not presently have an OPEN status. Be sure that this is the record you want before taking further action. Add subsequent information via CC URENT.
STATUS CODE INVALID An attempt has been made to change the record status to other than IDEN. Enter IDEN as status change.
SUBTOTALS NOT AVAILABLE FOR RECALL (only when using RECELL-CD) No prior totals are stored; or EMPLEE-NUMis not the same as the one used to store the subtotal; or prior command code is not compatible with the command code being entered. (Condition will result in zeroing out whatever totals have been stored up to this point. Recall to the screen all prior entries to get totals entered up to this point.
UR CONTROL NUMBER INVALID The UR-CTRL-NUM is not formatted correctly or is not all numeric. Correct and reenter.
MORE THAN 999 PAGES–USE FLC/CAMPUS CODE TO NARROW DOWN SEARCH The URINQ request has rendered more than 999 pages. Use either an FLC or Campus Code to narrow down the search.
M APPLICATION LIMIT EXCEEDED BDAPL Applications exceeds 98 records. Void remaining amount, create new CC BDADD for balance and reenter remaining applications.
TOO MANY TIF63 RECS - MUST WAIT FOR TRANSACTIONS TO POST BEFORE REINPUTTING/RE-ENTERING. The maximum allowable pending TIF63 records is 96. Your request will exceed this amount. Try your request again after some of the pending transactions have posted to the TIF.
DUPLICATE DC CONTROL NUMBER A DC Control Number exactly the same as the one being entered already exists on the DCF. Determine the reason for the duplicate number, then either assign a different control number and reenter or VOID the existing record if in error and reenter the correct record.
INVALID TRACE ID (SITE-ID) SITE ID of TRACE ID invalid for Service Center processing Check to ensure SITE-ID of TRACE ID is valid for Service Center.
REASON-CD 23 COMMENTS REQUIRED Comments are required when a master file apply is made to an account with a reason code 23. Input comment line and re-try.

Exhibit 3.17.10-16 
FMS Form 197, Judgement Fund Voucher for Payment

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Exhibit 3.17.10-17 
OTCnet User Standard Operating Procedures Agency Viewer

1. All User Procedures
If your agency has been chosen to use OTCnet and you have been identified as an employee who will need access, your Primary Local Security Administrator (PLSA) or Local Security Administrator (LSA) will need to create you as a user. You must agree to the "Rules of Behavior" document to be granted access to OTCnet. After your user ID has been created, your user ID and password will be distributed to you.
1.1 Initial Sign In
Regardless of your role, you must sign in for the first time in the following manner:
1. Go to https://www.otcnet.fms.treas.gov/otcnet/home.
2. The system will prompt you to enter your User ID and password.
3. The system will prompt you to enter your password again, and then enter a new password twice (please see the password rules below).
4. When your new password has been accepted, you will be directed to the Treasury User Provisioning Service.
5. Select "Update My Secondary Authorization Answers" .
6. Enter the answers to the questions provided. (This feature will help you reset your password should you ever forget it).
1.2 Password Maintenance
To change your password at a later date:
1. Go to https://www.otcnet.fms/treas.gov and select the My Profile menu item.
2. Select "Change My Password" .
3. Follow the system prompts to change your password.
1.2.1 Password Rules
-Must be a minimum of 8 characters
-Must include each of the following:
-Alphabetic lower-case
-Alphabetic upper-case
-Numeric character
-Maximum of two repeated characters
-An identical password cannot be reused for 10 successive password changes.
-A user has three consecutive attempts to enter a valid password. After the third attempt, the user is locked out and must answer pre-determined secondary authentication questions or call his or her PLSA, LSA or the Treasury OTC Support Center for validation of user identity and reset of the password.
1.2.2 Resetting Passwords
A user is permitted three consecutive attempts to enter a valid password. After the third attempt, the user is locked out and must answer pre-determined secondary authentication questions or call his or her PLSA, LSA or Treasury OTC Support Center for validation of user identity and reset of the password.

Users must log into the OTCnet application at least every 90 days or your access will be inactivated on the 90th calendar day since your last access date.

Users that have not accessed their OTCnet account for 120 days will have their access deleted on the 120th calendar day since their last access date. Users that have their access deleted will need to reapply for access through their organization.

Users that have been inactivated (90 days, no activity) or deleted (120 days, no activity) may be reactivated by the user's PLSA, LSA or the Treasury OTC Support Center. Reactivating a user requires resetting the password.
1.3 OTCnet Contingency
-Should you have an issue accessing OTCnet, review the contingency document at http://fms.treas.gov/otcnet/index.htmland click on the OTCnet Contingency document.
2. Agency Viewer Procedures
As a viewer, you may search deposits, view deposits, search adjustments and view business reports.
-Deposit history should be reviewed daily to verify deposits that are submitted and are confirmed on time by your Financial Institution.
 
Questions? Please call (866)945–7920 or email fms.otcchannel@citi.com

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