3.17.15  Accounting Reports Analyst - Responsibilities (Cont. 1)

3.17.15.7 
Subsidiary Accounts and Procedures

3.17.15.7.1 
Account 1400 Tax Accounts Transferred Out

3.17.15.7.1.1  (10-01-2011)
Account 1400 Review Procedures

  1. Verify that a copy of Form 514-B is filed and the amount matches the document with journal stamped.

  2. Follow-up with Campus if no confirmation is received.

3.17.15.7.2  (10-01-2011)
Account 1510 Other Receivables

  1. This receivable account will be used to record amounts of receivables other than taxes collectible. This account represents receivables which have not been collected, assessed or written-off as uncollectible. Account 1510 will be supported by copies of bills, debit voucher or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness.

  2. This account will also be used to clear unresolved debit items from the Service Center Control file (SCCF) and unprocessable debits from the Dishonored Check file (DCF). This account will be supported by case history files recording approval of the Submission Processing site Director to remove them from the SCCF. These items will be supported by Forms 3809 for non revenue receipt items and Form 2424 for revenue receipt items.

  3. Items referenced in (1) and (2) remaining in this account after the statutory period for assessment has expired will be transferred to Account 1840. The statutory period for assessment on unresolved debits from the Service Center Control file (SCCF) will be considered to have expired when the general assessment statute period has expired.

    Note:

    When supporting tax documents show the taxable period, then the general statute ruling applies. The general assessment statute period has expired 3 years from the due date of the return, or 3 years from the time the return was filed, whichever is later. When supporting tax documents cannot be located, after exhausting every means possible to retrieve them, use the Julian date of the DLN, apply the general assessment statute period, (3 years), and add one (1) year, for a total of 4 years, to determine the presumptive statute expiration.

  4. External subsidiary is the file of paper documents used as described above.

3.17.15.7.2.1  (10-01-2011)
Account 1510 Review Procedures

  1. Monitor and review for timeliness and accuracy.

  2. Ensure case files are journaled from 1510 to 1840 timely per the statute expiration dates.

3.17.15.7.3  (10-01-2011)
Account 1530 Employee Fraud Case

  1. This receivable account is used to record an employee fraud case. Account 1530 will be supported by:

    • Court documents

    • Treasury Inspector General for Tax Administration (TIGTA) and/or Criminal Investigation Reports

    • Debit vouchers or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness

  2. Employee Fraud Cases are controlled in Account 1530 . Access should be limited.

  3. Transfer case to Account 4910, Disbursement Loss, when the case is determined uncollectible. Documentation will explain why the case is uncollectible.

  4. The external subsidiary for this account is the file of paper documents described in (1) above.

3.17.15.7.3.1  (06-18-2013)
Account 1530 Review Procedures

  1. At the start of your review check case files for the following:

    • Ensure balance sheet with comments concerning case actions is completed.

    • Ensure Form 3809 was prepared to apply Transaction Code (TC) 700 false credit to the account.

  2. Maintain case files as follows:

    • Ensure cases are in Doc ID, Taxpayer Identification Number (TIN) or Alpha order.

    • Ensure the completed case balance sheet is on the left side of the folder.

    • The right side of the folder should contain:
      Original TXMOD print, followed by
      Current TXMOD print (These prints should be updated every 6 months or when action is taken)
      Any back-up letters or correspondence, etc. should follow
      Keep the most current documents on the top following the TXMOD prints. All actions should be dated and recorded in detail on the balance sheet.

      • All original Forms 3809 should be maintained in the case folder with the most current journal at the top.

      • Original case on the bottom of the right hand side of the case file.

      • The balance sheet should show the original "repayment" amount and the remaining balance. This should be updated with each new transaction or repayment. The ending amount should always match the balance on the 1530 Account portion of the RRACS 0131 report.

      • Review the IDRS control base to verify that it is being updated with the appropriate activity and the examiners control number is listed.

      • Pull case every 3 months and apply appropriate actions taken until the statute date expires.

3.17.15.7.4  (10-01-2011)
Account 1535 Court Case Erroneous Refund (Kansas City Only)

  1. This receivable account is used to record erroneous refund receivables that result in a court case.

  2. Account 1535 will be supported by:

    • Form 3809 Documents

    • Backup Documentation such as IDRS Print reflecting Erroneous Refund

    Note: The case file for this account is maintained by the Ogden Scheme Development Office.

3.17.15.7.4.1  (06-18-2013)
Account 1535 Review Procedures

  1. Ensure Form 3809 documents balance to the 1535 Account portion of the RRACS 0131 Report.

  2. Ensure all back-up documentation is present.

3.17.15.7.5  (10-01-2011)
Account 1540 Non-Court Case Erroneous Refund

  1. This receivable account is used to record erroneous refund receivables that are not court cases. This account represents erroneous refund receivables that have not been collected, resulted in a court case, assessed or determined uncollectible. Account 1540 will be supported by:

    • Copies of bills

    • IDRS Letter 510C or Letter 4728C

    • Debit vouchers

    • Other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness

  2. Cases are transferred to Account 1530 when it is determined that the case is going to court.

  3. Cases are transferred to Account 4910, Disbursement Loss when the statute expires.

  4. A case determined to be uncollectible before the statue expiration will be transferred to Account 4910, Disbursement Loss . Documentation will explain why the account is uncollectible.

    Note:

    The reports analyst must review Account 1540 monthly to ensure that cases are timely transferred to Account 4910.

  5. The external subsidiary for this account is the file of paper documentation described in (1) above.

3.17.15.7.5.1  (09-23-2014)
Account 1540 Review Procedures

  1. Within the first 10 days of receipt the tax examiner should have the following:

    • Completed history sheet.

    • Verification of 1st Letter 510C issued by area identifying the erroneous refund. If no Letter 510C had been sent then the examiner receiving the case should have sent it.

    • Verification that a TC 844 is on the IDRS account with a demand date, if the IRS is in error, or no demand date if the taxpayer is in error. If the case is routed from one center to another the TC 844 should have been re-input at the campus where the case is being worked.

    • Verify the TC 470, Closing Code 93 has been input.

    • Verify the TC 971, Action Code 663 has been input.

  2. Case files should be maintained as follows:

    • Cases should be in Doc ID, TIN or alpha order

    • The right side of the folder should contain:

      1. Completed case history sheet

      2. The original TXMOD print

      3. A current TXMOD print

      Note:

      TXMOD prints should be updated at least, every 3 months or when action is taken.

      4. Back-up, letters, correspondence, etc.

      Note:

      Keep the most current action at the top after the TXMOD prints. All actions should be dated and recorded in detail on the history sheet.

    • All original Forms 3809 should be maintained in case folder with the most current journal on top.

    • Erroneous refund expiration date must be marked on the outside of the case file folder.

    • Original Erroneous refund case on the bottom of the right hand side of the case file.

    • Balance sheet showing the original Erroneous Refund amount and the remaining balance. This should be stapled to the left side of the case folder and updated with each transaction. The ending amount should always match the balance on the RRACS 0131 report.

    • Ensure the second Letter 510C was sent 45 days after the first Letter 510C or if the case was not received within 45 days from the identifying area then the second Letter 510C was sent within 10 days of receipt of the case.

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    • Review IDRS control base to verify that it is being updated with appropriate activity and the examiners control number is listed.

    • Pull case every 3 months and apply appropriate actions taken until erroneous refund statute date expires.

3.17.15.7.6  (09-23-2014)
Account 1543 Payment over Cancellation Erroneous Refunds

  1. This receivable account will be used to record erroneous refund receivables that are NOT court cases. This account represents erroneous refund receivables that have NOT resulted in court cases nor have been collected, assessed or determined uncollectible. Account 1543 is supported by copies of bills, Letter 510C, debit vouchers or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

  2. When setting up the case on RRACS, use the TC 700 transaction date on Form 3809. This transaction date is the date of the erroneous refund (TC 840/846). Form 3809 should be stapled to the left side of the folder with the most current one on top and with a journal number clearly printed on each form.

  3. Refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations for additional information on processing POC accounts.

  4. The external subsidiary record for this account is the file of paper documents described above. For maintaining cases in this account refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations.

3.17.15.7.6.1  (09-23-2014)
Account 1543 Review Procedures

  1. Follow same review procedures as 1540 account found at 3.17.15.7.5.1 with the exception of:

    • The ending amount should always match the balance on the RRACS 0156 report.

3.17.15.7.7  (04-07-2014)
Account 1545 Identity Theft Erroneous Refunds

  1. This receivable account will be used to record identity theft erroneous refunds and was effective June 25, 2012. This account represents identity theft erroneous refund receivables which are uncollectible. Account 1545 will be supported by Form 3809, IDRS prints, or other documents showing the name of each debtor, amounts receivable, and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

  2. Beginning January 15, 2014, cases that are opened via new IDRS command codes IDT 48 or IDT 58 will be supported by End ofDay(EOD)1640, EOD 1622, and Batch posting 171 report. This account is not under Director's Accountability.

  3. The systemic processing will produce a daily automated Batch Journal 171 to RRACS which will debit account 1545 and credit account 4220. The EOD 1640 will produce the summary (amounts and volumes) of the transactions and a new report EOD 1622, which lists the detailed information (taxpayer identification) of each transaction, will also be available on Control D. See IRM 3.17.64.17.10 for procedures used to balance the GL 1545.

  4. Refer to IRM 3.17.64.17.10, Accounting Control General Ledger Policies and Procedures for monthly balancing procedures.

  5. Refer to IRM 3.17.243, Miscellaneous Accounting for resolution of unpostables and write-off procedures.

  6. The external subsidiary record for this account is the Form 3809 or EOD 1640, EOD 1622, and Batch posting 171 report.

3.17.15.7.7.1  (07-07-2014)
Account 1545 Review Procedures

  1. Ensure all external subsidiary records are maintained in the case file until the five year statute has expired.

    • For manual processing, Forms 3809 should be maintained in a suspense file by Form 813 DLN.

    • Verify Form 813 is updated with current balance due to adjustments/duplicates removed from the batch.

    • Balance of Form 813 agrees with RRACS 0155 case balance.

  2. For systemic processing,:

    • RRACS 171 batch run should balance to the EOD 1640/1622 Control-D report.

    • Ensure 171 journal is stamped on the EOD 1640 and 1622.

    • If a reversal or write-off was done January thru May 20, 2014, Form 5147 should be attached.

3.17.15.7.8  (10-01-2011)
Account 1600 Manual Assessments, Transit Account

  1. The unpaid balance of manual assessments may be established in the manual Assessments, Transit Account.

  2. Assessments manually prepared may be transferred from Account 1600 to NMF, BMF, IMF or Individual Retirement Account (IRA) in accordance with schedules established by the individual Submission Processing sites.

  3. External subsidiary is a file of new documents pending transfers to NMF, BMF, IMF or IRA.

3.17.15.7.8.1  (10-01-2011)
Account 1600 Review Procedures

  1. Verify Form 3552, Form 2859 and Form 813 are in the file.

  2. Protective Manual Assessment (PMA) cases have a 45 day time-frame.

  3. Ensure account closed timely.

3.17.15.7.9  (07-07-2014)
Account 1710 Dishonored Checks

  1. This receivable account will be used to record and control dishonored checks or money orders, previously recorded as collections for the IRS.

  2. Account 1710 serves as a suspense account for these items while research operations are being performed to determine proper application to the taxpayer account. Individual items within the account are controlled and maintained on a magnetic tape file within IDRS.

  3. After research and proper identification, items are removed from the IDRS file and posted as debits to the taxpayer account. Items remaining on the file after 367 days will be transferred to Account 1510.

  4. After the DCF file is balanced to all related SF5515's, sub-batches are prepared and tapes are run. Entries to RRACS are made from the SF 5515's and tapes. Annotate all journal numbers and amounts on the DCF03. Make sure total of journals balances with total added to DCF file, plus or minus any adjustments or errors, as noted.

  5. This account will also be used to record deposit discrepancies (losses) related to SF 5515. These items will be entered immediately onto the DCF for control purposes. Necessary research will be performed to determine the proper application of the debit. If, after 90 days, the debit cannot be resolved, it will be transferred to Account 7650, Deposit Discrepancies. The case must be documented with all actions taken to resolve the discrepancy. This documentation is needed to request relief of the loss.

  6. External subsidiary is the DCF on IDRS.

    Note:

    Verify the Retention of Dishonored Check File Dropped Listing DCF 5403 and DCF 5404 is being maintained as stated in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), 3.17.220, Excess Collections File, and Document 12990 (Records Management, Control Records Schedule for Tax Administration), (7 Years).

3.17.15.7.10  (10-01-2011)
Account 1840 Other Receivables, Inactive

  1. This receivable account will be used to record the amounts of unresolved items for which the statutory period of assessments has expired.

  2. Items in this account will be transferred from Account 1510. These case history files will be supported by approval of the Submission Processing site Director.

  3. Items may also be transferred from Account 4810. These case files will be supported by administrative approval delegated no lower than Chief, Accounting Operations. Items in this account will be closed to Account 6600, Accounts Cleared Statute, ten years from the date of the deposit ticket/debit voucher.

  4. Case files will be reviewed at least once yearly to determine the accounts on which the Statute for Collection has expired.

  5. Upon expiration of Statute for Collection, items in this account will be closed to the Accounts Cleared, Statute Account 6600.

  6. External subsidiary is the case history files.

3.17.15.7.10.1  (06-18-2013)
Account 1840 Review Procedures

  1. Review for:

    • Timely movement to next account

    • Updated history sheets

  2. Ensure case files are being reviewed annually

  3. Ensure managers sign and date history sheet

  4. Ensure account is in balance

3.17.15.7.11  (10-01-2011)
Account 2330 Employee Plans/Exempt Organization (EP/EO) User Fees

  1. This receipt account represents monies collected and placed in the Treasury General Fund Account. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A. The Submission Processing Campus Director is personally accountable for these funds until deposits into the Treasury Account is confirmed.

    Note:

    Cincinnati Submission Processing only. Deposits received for this account in sites other than Cincinnati, should be transferred via Form 2158 to Cincinnati.

  2. Included in this account are monies for Treasury Account Symbols 20–2411 (User Fees).

  3. This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

  4. Account is maintained on a fiscal year basis.

3.17.15.7.11.1  (10-01-2011)
Account 2330 Review Procedures

  1. Verify all documents journaled to this account are for the Cincinnati Submission Processing Campus (CSPC) only.

  2. Other than CSPC, ensure Form 2158 have been completed to transfer credits and documents to other sites.

  3. Ensure re-class has been completed on RRACS.

  4. Ensure the contra account was journaled into Account 6310 .

  5. Ensure account is balanced.

3.17.15.7.12  (10-01-2011)
Account 2335 Miscellaneous User Fee

  1. Included in this receipt account are monies for the EO User Fee Increase and the Form 990 CD User Fee. The EO User Fee increase is processed in Cincinnati .The Form 990 CD User Fee is processed in Ogden. These monies are reported under Treasury Account Symbol 20X5432.5.

3.17.15.7.12.1  (10-01-2011)
Account 2335 Review Procedures

  1. Verify all documents journaled into this account belong to your campus (Cincinnati and Ogden Only).

  2. Other than CSPC and OSPC, ensure Form 2158 has been completed to transfer credits and documents to either CSPC or OSPC.

  3. Ensure re-class has been completed on RRACS.

  4. Ensure the contra account was journaled into Account 6310.

  5. Ensure account is in balance.

3.17.15.7.13  (10-01-2011)
Account 2350 Public Debt

  1. This receipt account represents monies collected and placed in the Treasury General Fund accounts. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A. The Submission Processing Site Director is personally accountable for these funds until deposits into the Treasury Account is confirmed.

  2. Included in this account are monies for treasury Account Symbols 20X5080.1 (Voluntary Contribution to reduce the National Debt).

  3. This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

  4. This account is maintained on a fiscal year basis.

3.17.15.7.13.1  (10-01-2011)
Account 2350 Review Procedures

  1. Ensure document clearly states "Public Debt."

  2. Ensure documents are maintained, journaled and balanced separately within Account 6400 .

3.17.15.7.14  (10-01-2011)
Account 2355 Federal Court Ordered Restitution
(Kansas City Only)

  1. This receipt account represents monies collected for court ordered restitution of fines, penalties and court costs. This also includes court ordered restitution in excess of assessable amount. These payments should be received with instructions from the originator that these payments fall into one of these categories. These monies are reported under Treasury Account Symbol 20–3220.

3.17.15.7.14.1  (10-01-2011)
Account 2355 Review Procedures

  1. Verify the documents journaled into this account belong in this account (Kansas City Only).

  2. Ensure the contra account was journaled in Account 6400 (Kansas City Submission Processing Campus).

  3. Ensure credits and any supporting documentation are transferred via Form 2158.

  4. Ensure re-class is completed.

  5. Ensure Form 2158 was prepared to transfer money to Kansas City.

3.17.15.7.15  (10-01-2011)
Account 2360 Conscience Funds

  1. This receipt account represents monies collected and placed in the Treasury General Fund Accounts. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A.

  2. The Submission Processing Site Director is personally accountable for these funds until deposits into the Treasury Account is confirmed.

  3. Included in this account are monies for Treasury Account symbols 20–1210 (Conscience Fund).

  4. This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

  5. Account is maintained on a fiscal year.

3.17.15.7.15.1  (10-01-2011)
Account 2360 Review Procedures

  1. Ensure document clearly states for conscience fund or anonymous.

  2. Ensure documents are maintained, journaled and balanced separately in Account 6400.

3.17.15.7.16  (10-01-2011)
Account 4610 Unapplied Advance Payments

  1. This liability account will be used to record advance payments voluntarily made by taxpayers in anticipation of deficiency or additional assessments of all classes of tax, and advance payments (including cash bonds) in pre-refund audit cases. The balance on this account represents all such payments which have not been assessed, applied to taxpayer accounts, refunded or transferred to other offices.

  2. Account 4610 will be supported by subsidiary records established to identify the taxpayer, amount of advanced payment and subsequent assessment application, refund, or transfer of the collection.

3.17.15.7.16.1  (10-01-2011)
Account 4610 Review Procedures

  1. Ensure account is being used properly.

    Note:

    Account should only contain payment documents that are prepared by Examination with the exception of the IMF $100 Million Dollar taxpayers.

  2. Verify spreadsheet is being maintained.

  3. Ensure file folder is prepared for each document that is six (6) months or older.

  4. Ensure history sheet is being maintained with all actions annotated.

  5. Ensure account is balanced monthly to the general ledger.

3.17.15.7.17  (10-01-2011)
Account 4620 Unidentified Remittances

  1. Recorded in this liability account are those receipts received by the Service without sufficient information to make application to the proper account. Receipts deposited to this account are considered revenue receipts in the income tax classification.

  2. Items are cleared from this account as applications to outstanding accounts, assessments of tax due, refunds to remitter, and adjustments to other funds or other agencies.

  3. Applications from this account normally must be reclassified upon application.

  4. Items in this account will be cleared to Account 6800, Excess Collections, after one (1) year.

  5. Account 4620 will be supported by subsidiary records established on URF.

3.17.15.7.17.1  (10-01-2011)
Account 4620 Review Procedures

  1. Review this account monthly to ensure that cases are being researched adequately and timely for proper application of payments. Refer to IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF) for detail processing of a case file.

  2. Pull a random sample of cases to review. Use a check sheet as part of the review process.

  3. The URF cases will include letters, envelopes, copy of money orders, cashier checks, government checks or illegible remittances and all case related material received from the taxpayer.

  4. Part 3 of Letter 3731C will be used as a history sheet.

  5. Ensure:

    • URF number is listed on case

    • History sheet should include the date the case was added

    • The initial action taken was within 2 workdays of being added IRM 3.17.10.1.6(2), Dishonored Check File (DCF) and Unidentified Remittance File (URF)

    • IDRS Command Code usage. see IRM 3.17.10.3.5(4), Dishonored Check File (DCF) and Unidentified Remittance File (URF)

    • 1st letter sent within 30 days

    • 2nd letter sent 45 days after no reply to 1st letter

    • History sheets adequately documented

  6. When review is complete, initial, date history sheet and provide a review summary to management.

  7. Verify that the Retention of Unidentified Remittance Dropped Listings are being maintained as stated in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), IRM 3.17.220, Excess Collections File, and Document 12990 (Records Management, Control Records Schedule for Tax Administration), (7 Years).

3.17.15.7.18  (10-01-2011)
Account 4710 Offers in Compromise

  1. This liability account is used to hold and control amounts received with Offers-in-Compromise, while the offer is being processed. Monies recorded in this account are Deposit Fund amounts deposited under Treasury Symbol 20X6879.

  2. Deposit Fund monies may be reclassified to revenue receipts and applied to taxpayer accounts, refunded upon rejection or withdrawal of the offer, or transferred to another Submission Processing Campus on Form 2158. Transfers will be reclassified by the receiving Submission Processing Campus.

  3. This account is supported by individual records within the Data Base. Application, refund, or transfer must not exceed the credit available in the individual record. The external subsidiary file is the Record of Offer-in-Compromise, Form 2515 or 4710–CG.

3.17.15.7.19  (10-01-2011)
Account 4720 Sales of Seized Property

  1. This liability account is used to hold and control amounts received as proceeds from the sales of seized property until proper distribution documents are completed by the collection functions.

  2. Deposit Fund monies may be reclassified to revenue receipts and applied to an outstanding tax liability, refunded to taxpayer when amount is in excess of tax liability or transferred to another Submission Processing Site on Form 2158. Transfers of Deposit Fund amounts will be reclassified by the receiving campus.

  3. This account is supported by individual records in the RRACS Data Base. Application, refund, or transfer must not exceed the credit available in the individual record. The external subsidiary file is the Deposit Fund Record, Property Sales and Deposits, Form 1983.

3.17.15.7.19.1  (10-01-2011)
Account 4720 Review Procedures

  1. Review of this account should be performed quarterly:

    • Compare RRACS 0135 report to Form 2433 document to ensure correct information has been journaled (i.e. journal number, money amounts, etc.).

    • If corrections were made they will be documented on the balance log that is maintained in the front of the 4720 account folder.

    • Compare balance corrections to the Daily Posting Summary (DPS) to verify that all corrections have been completed.

3.17.15.7.20  (10-01-2013)
Account 4730 Miscellaneous Deposit

  1. This liability account is used to hold and control miscellaneous deposit fund amounts. Included in this account will be amounts requested held by Criminal Investigation when related to an on-going investigation, and other specific transactions authorized by HQ.

  2. Deposit fund monies may be reclassified to revenue receipts, and applied to outstanding tax liabilities or assessments, refunded to taxpayers when amount is in excess of liability, or transferred to another campus on Form 2158.

  3. This account is supported by individual records in RRACS. Application, refund, or transfer must not exceed the credits available in the individual records. The external file is Form 2236.

3.17.15.7.20.1  (10-01-2011)
Account 4730 Review Procedures

  1. Ensure money amount matches with RRACS.

  2. List each Doc ID in order, original prepared dated and balance that is in the open status.

  3. Ensure history sheet is annotated with all actions taken.

  4. Ensure semi-annual verification is completed.

  5. Ensure copy of the memo is in the case file.

3.17.15.7.21  (10-01-2011)
Account 4910 Disbursement Loss

  1. This liability account provides internal control for disbursement losses (unrecoverable erroneous refunds). Cases will be maintained in this account while relief for the Accountable Officer is requested.

  2. A case will be transferred from Account 1530 when the case is determined to be uncollectible. Documentation will explain why the case is determined uncollectible.

  3. A case will be transferred from Account 1540 when the case is determined to be uncollectible or the statute expires. Documentation will explain why the case is determined uncollectible.

  4. The case documentation will be used to support the relief request.

  5. If a taxpayer makes a payment while in Account 4910, then credit Account 4910 and debit SCCF account.

  6. When relief is granted, Account 6920, Disbursement Write-Off, will be debited, and Account 4910 will be credited to provide relief.

3.17.15.7.21.1  (10-01-2011)
Account 4910 Review Procedures

  1. When the 2 or 5 year statute for collection has expired on erroneous refunds, ensure the examiner has taken the following actions:

    • History sheets are updated and current.

    • The Transaction code 700 on the account should match the amount that needs to be written off and also match the RRACS 0131.

    • The taxpayer should only be in a balance due for any tax, penalty and interest on the tax and penalty, correctly assessed on his account. If the account has zero tax, there should be no balance due or credits on the account.

    • The case file is completed according to IRM 3.17.80.1.11, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations.

    • The TC 700 is highlighted on a current TXMOD print.

    • There is a completed list in the case file with the following information:

      The Accountable Director

      The statute expiration date

      The correct money amount

      The reason for write-off should match the information on the history sheet

    • Ensure Form 3809 is prepared to credit Account 1540 and debit Account 4910.

    • Ensure the amounts match Form 3809 with write-off amount.

    • Ensure original Form 3809 is in the case file complete with journal number.

    • Ensure the case is marked as a write-off on the outside of the folder in black marker.

    • Ensure the TC 845 is on the IDRS account.

    • Ensure the control base on IDRS is reassigned to the write-off control number.

    • When the memo is received from the Field Director, the senior/specialist will forward to the HQ, Loss and Shortage Analyst. At this time, the case will be re-controlled, the IDRS Activity will be "the Erroneous Refund case number," and it will be maintained in Account 4910 file until approval is received from the W&I Director.

3.17.15.7.22  (09-23-2014)
Account 4970 Unapplied Refund Reversal

  1. This liability account is used to record and control canceled refund checks prior to research for proper application. The items included in this account are only those checks generated manually or through IDRS, which cannot be input by the disbursing office directly to the Master File.

  2. This account is used to control refund (45 document code) items that are received due to mismatch of money amounts. Resolution of these items may require contact with the (RFC) and BFS. Discrepancies under $5.00 will be resolved using Account 6540, Small Debit and Credits Cleared.

  3. If any items cannot be resolved through research and have been in the account for over two years, follow-up contact with RFC and BFS, administrative action may be requested. Administrative approval to charge Unapplied Refund Reversal credit amounts to Account 6800, Excess Collections, and charge debit items to Account 1840, Other Receivables, may be granted. Authority for approving such action may not be delegated below Operations level. All cases should be fully documented regarding research performed, destruction of records, contacts, related correspondence, etc. to ascertain that resolution is no longer possible.

  4. This account is used to control Limited Pay Cancellations received via IPACD or IPACR until the tapes are processed at ECC-MTB or manual documents are prepared. Individual records will be maintained for each IPAC Document.

  5. Items placed in this account will be subject to expedite research to determine proper application and will be transferred to the proper taxpayers account upon identification.

  6. Refunds and Cancellations transferred from this account to a miscellaneous fund must be reclassified.

  7. The external subsidiary file documents are Forms 3809 associated with Forms 1098 and IPAC Treasury Receivable, Accounting, and Collection System (TRACS).

3.17.15.7.22.1  (07-07-2014)
Account 4970 Review Procedures

  1. Compare the following reports with the account balance worksheet:

    • RRACS Report 0130

    • IPACR Suspense Report

    • RRACS Report 0138, and

    • IPACD Suspense Report

  2. Review the timeliness of the case files.

  3. Ensure all case file history sheets are fully documented regarding research, contacts made, and any other actions taken.

  4. Ensure proper documents were prepared and all documentation is present.

    • Follow up documentation is present.

    • Funds should not be reflected in this account beyond 30 days from original received date.

3.17.15.7.23  (06-18-2013)
Account 4971, Unapplied External Leads Real Account (Fresno and Cincinnati Only)

  1. This account is used to record and control unapplied external leads prior to research for proper application.

  2. The items included in this account also include unapplied external leads which cannot be applied directly to MF.

  3. The external subsidiary file documents are Form 3809's.

  4. Paper check deposit processing is in Fresno only. Electronic payment processing is in both Fresno and Cincinnati.

  5. For processing procedures refer to IRM 3.17.64.18, Accounting Control General Ledger Policies and Procedures.


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