Part 3. Submission Processing

Chapter 17. Accounting and Data Control

Section 15. Accounting Reports Analyst - Responsibilities (Cont. 1)

3.17.15  Accounting Reports Analyst - Responsibilities (Cont. 1)

3.17.15.7 
Subsidiary Accounts and Procedures

3.17.15.7.12  (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 5515s normally are applied to the Revenue Receipts Withholding Class.

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

3.17.15.7.12.1  (10-01-2011)
Account 2350 Review Procedures

  1. Ensure document clearly states "Public Debt."

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

3.17.15.7.13  (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.

3.17.15.7.13.1  (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 the 6400 account (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.

3.17.15.7.14  (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.

3.17.15.7.14.1  (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 the 6400 account.

3.17.15.7.15  (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.

3.17.15.7.15.1  (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.

3.17.15.7.16  (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.

3.17.15.7.16.1  (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 the 3731C letter 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)

    • IDRS Command Code usage. see IRM 3.17.10.3.5(4)

    • 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 IRM 1.15.29 (Records Management, Control Records Schedule for Tax Administration), (7 Years).

3.17.15.7.17  (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.

3.17.15.7.18  (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.

3.17.15.7.18.1  (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.

3.17.15.7.19  (10-01-2011)
Account 4730 Miscellaneous Deposit

  1. This liability account is used to hold and control miscellaneous deposit fun 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.

3.17.15.7.19.1  (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.

3.17.15.7.20  (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 the 1530 Account when the case is determined to be uncollectible. Documentation will explain why the case is determined uncollectible.

  3. A case will be transferred from the 1540 Account 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 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.

3.17.15.7.20.1  (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 follow 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 the 1540 account and debit the 4910 account.

    • 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 & 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 the 4910 account file until approval is received from the W&I Director.

3.17.15.7.21  (10-01-2011)
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 Regional Finance Center (RFC) and the Financial Management Service (FMS). 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 FMS, 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 Branch 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).

    (Fresno ONLY) The external subsidiary file documents for disbursement funds received from Bank Leads for AM TAP cases are the Form 3809, associated with a copy of the check, and listing received from the Bank.

3.17.15.7.21.1  (10-01-2011)
Account 4970 Review Procedures

  1. Compare the following reports with the Form 3997 account balanced 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.

3.17.15.7.22  (10-01-2011)
Account 4975 Liability, DOJ Receipts
(Kansas City Only)

  1. This liability account is used to control unapplied lockbox items from the Department of Justice (DOJ) until research can be accomplished to determine appropriate application or reversal to DOJ. The lockbox accounts will be maintained in an external subsidiary file, consisting of a copy of the listings, cross referenced with the applicable journal number. As each item is identified and applied, the supporting subsidiary document should be annotated and the remaining balance corrected to assist in the monthly reconciliation.

  2. 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.

  3. If any items can not be resolved through research and follow-up with DOJ and have been in the account for over two years, administrative action may be requested. All cases should be fully documented regarding research performed, destruction of records, contacts, related correspondence, etc. to ascertain that resolution is no longer possible. Once approval has been granted these items will be transferred to Account 6800, Excess Collections. Authority for approving such action may not be delegated below Branch level.

3.17.15.7.22.1  (10-01-2011)
Account 4975 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)), IRM 3.17.63 (Redesign Revenue Accounting Control System), and IRM 3.17.243 (Miscellaneous Accounting) for detail processing of a case file.

  2. The DOJ technician will have all account 4975 case folders for review. Pull a random sample of cases to review. They are filed in alpha order. The cases should include history sheets, Form 2424, IDRS prints and IPAC listing. Use a check sheet as part of your review process.

    1. List name control and Doc ID from case file

    2. Document received date

    3. Ensure all supporting documentation is in case

    4. Ensure history sheet is updated and all actions notated

    5. Ensure IDRS CC research is complete

    6. Ensure contacts were made with FLU (Financial Litigation Unit), Courts, Counsel, etc.

    7. Verify item over 2 years old

    8. Confirm write-off memo prepared timely

    9. When review is completed, initial and date history sheet

    10. Provide a copy of the review summary to management

3.17.15.7.23  (10-01-2011)
Account 4985 IPACR Suspense

  1. This account is used to record and control IPACR receipts prior to research for proper application.

  2. Items not identified in Accounts 4970 and 4975 will be included in this account.

3.17.15.7.23.1  (10-01-2011)
Account 4985 Review Procedures

  1. Monitor and review as needed.

3.17.15.7.24  (10-01-2011)
Account 6310 Miscellaneous Fees

  1. This account records the liability for fees and services rendered. The following fees will be recorded in Account 6310:

    • 2320 Duplication of EOMF Documents

    • 2330 EP/EO User Fee

    • 2335 EP/EO User Fee Increase (CSPC)

    • 2340 Photocopy Fee

    • 2380 New Installment Agreement User Fee

    • 2385 Reinstated Installment Agreement User Fee

    • 2395 OIC User Fee

  2. The seven individual accounts mentioned above must be balanced and maintained separately within Account 6310.

3.17.15.7.24.1  (10-01-2011)
Account 6310 Review Procedures

  1. Reports/Documents received from RACS for review:

    • RRACS Report 004 - Monthly General Ledger Trial Balance (MTRIAL)

    • RRACS Report 051 - General Ledger Account Details (For each contra account listed)

    • Balanced contra account worksheet

    • Account folder with maintained documentation enclosed

  2. Using the RRACS Report 004 add the contra account figures, minus the 6310 account, total should be zero. If an out of balance occurs, ask the DBA to research the account journals and request a correction journal when needed.

  3. The balanced contra account worksheet will have a beginning balance of zero at the beginning of the new fiscal year (FY). The ending balance at the end of each month will carry over to the next month.

  4. The account folder will maintain forms 1963, 2221, 8166, 3244, 813, 2424, and copies of deposit tickets, checks. memorandums, etc. Verify the collection is maintained behind the correct contra account, ensure monies are transferred to other campuses timely, when indicated, and journalizations were created properly.

  5. Verify the correct journal of debits and credits from RRACS 051 are listed properly on the balance worksheet and the ending balance equals the account general ledger net amount.

  6. If a difference is present the RRACS 051 can be used to identify the out of balance.

  7. Ensure the worksheet is initialed and dated by the balancer. Ensure the manager reviewed the account during the quarter; verify their initials and date of their review.

  8. When the review is completed, initial and date both the balancers worksheet and the RRACS Report 004.

  9. Provide a copy of the Reports Analyst review summary to management.

3.17.15.7.25  (10-01-2011)
Account 6400 Miscellaneous Revenue Collections

  1. This account is used to record the amount of collections received as a result of judgements for fines, penalties, or court costs asserted by federal courts incident to evasion of payment of taxes, offers accepted in lieu of such liabilities, and other non-assessable specific penalty offers.

  2. This account is also used to record miscellaneous collections that are not assessable on the taxpayers account.

  3. This account is used to record all monies/revenue collected for:

    • 2310 Account -Treaty Country Receipts (20–3220)

    • 2320 Account -Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest (20–3220)

    • 2325 Account -Miscellaneous Forfeiture Receipt (20–1099)

    • 2345 Account -Presidential Election Campaign (20X5081.1)

    • 2350 Account -Public Debt (20X5081.1)

    • 2355 Account -Federal Court Ordered Restitution for Costs and Penalties (20–3220)

    • 2360 Account -Conscience Fund (20–1210)

    • 2365 Account -LIFO Payments, Rev Proc 97-44 Settlement Payments (20–3220)

    • 2370 Account -Mortgage Subsidy Bond Receipt (20–3220)

  4. The nine individual accounts mentioned above must be balanced and maintained separately, within Account 6400.

3.17.15.7.25.1  (10-01-2011)
Account 6400 Review Procedures

  1. Receive from RACS the reports/documents needed to perform review:

    • RRACS Report 004 - Monthly General Ledger Trial Balance (MTRIAL)

    • RRACS Report 051 - General Ledger Account Details, (For each contra account listed)

    • Balanced contra account worksheet

    • Account folder or case file with maintained documentation enclosed

  2. Using the RRACS Report 004 add the contra account figures minus the 6400 Account, the total should be zero. If an out of balance occurs ask the DBA to research the account journals and request a correction journal when needed.

  3. The balanced contra account worksheet will have a beginning balance of zero at the beginning of the Fiscal year (FY). The ending balance for each month will carry over to the next month.

  4. The account folders will maintain forms 1963, 8166, 2221, 3244, 813, 2424, and copies of deposit tickets, checks, memorandums, etc. Verify the collection is maintained behind the correct contra account, ensure monies are transferred to other campuses when indicated and journalizations were created properly.

  5. Verify that the correct journal of debits and credits from the RRACS 051 are listed properly on the balanced worksheet and the ending balance equals the account general ledger net amount.

  6. If there is a difference, the RRACS 051 can be used to identify the out of balance.

  7. Ensure the worksheet is initialed and dated by the balancer. Ensure the manager reviewed the account during the quarter by verifying their initials and date review was performed.

  8. When the review is completed, initial and date both the balancers worksheet and the RRACS Report 004.

  9. Provide a copy of the Reports Analyst review summary to management.

3.17.15.7.26  (10-01-2011)
Account 6565 Refund Cancellation Credits Allowed

  1. The monies posted to this account are indicative of the processing which allows a refund cancellation credit (TC 841) to post to a taxpayers account when a refund was issued, but never negotiated by the taxpayer.

  2. IRS is legally obligated to re-credit the taxpayers account for the amount of the check if FMS either cannot return a credit to IRS under the terms of the competitive equality Banking Act of 1987 (Limited Pay-ability), or has returned a credit but IRS cannot locate the credit.

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

3.17.15.7.26.1  (10-01-2011)
Account 6565 Review Procedures

  1. Review the case files for Form 3809, TXMOD print or account transcript showing all control base activity and history items.

  2. The supporting documentation should demonstrate adequate Category criteria of 1, 2, 3, or 4.

  3. For Category 3 items - the Operation Managers' signature is required.

  4. Compare the monthly balanced account worksheet to the case file item and amount. If a difference occurs the RRACS Report 051S can help identify the out of balance. Verify the General Ledger account total.

  5. Ensure the worksheet is initialed and dated by the balancer.

  6. Ensure quarterly review by manager, verify signature and date.

  7. When completed, initial and date worksheet and RRACS Report 004.

  8. Provide a copy of the review summary to management.

3.17.15.7.27  (10-01-2011)
Account 6570 Substantiated Credits Allowed

  1. This account will record the allowance of substantiated credits not previously recorded or allowed. Substantiated payments will be approved for credit to taxpayer IMF, BMF, or NMF accounts, upon receipt in Accounting of a fully documented case file which includes such items as a receipt, cancelled check, and documentation of research performed. The case will also have the record of administrative approval and authority for the credit allowance.

  2. (Austin Only) This account is used for the substantiation of ES payments made to Guam when taxpayer is filing tax Form 1040 with the U. S. Treasurer.

  3. The external subsidiary record will be a combination of both case file types.

3.17.15.7.28  (10-01-2011)
Account 6700 Foreign Check Collection Cost and Miscellaneous Bank Charges

  1. This account is used to record charges by the depository banks, or by the cash division of the Treasurer's office, for processing foreign checks, and other miscellaneous fees, including encoding error charges. These charges will normally be made on SF 5515.

  2. External subsidiary record is the case file.

3.17.15.7.28.1  (10-01-2011)
Account 6700 Review Procedure

  1. Review and monitor the M Trial.

  2. This account should always be zero.

  3. If there is a money amount journaled, follow-up with RACS.

3.17.15.7.29  (10-01-2011)
Account 6800 Excess Collections

  1. This account records payments equal to, or more than, one-year old from the IRS received date, that cannot be applied to a tax account, or year-old unapplied credits (FTD, or direct payments) transferred from unidentified revenue collections.

  2. Also included in this account are unapplied, statute-expired MF credits cleared from the file, and the reversals of these credit clearances when recorded in the same fiscal year. These statute expired clearances do not include TC 388 and TC 389 transactions.

  3. This account will be debited for amounts applied to taxpayer accounts, transferred or refunded.

  4. Account 6800 is supported by subsidiary records established on XSF on IDRS.

3.17.15.7.29.1  (10-01-2011)
Account 6800 Review Procedures

  1. Verify that the Retention of Excess Collections File Dropped Listing - URF 5001 is 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 IRM 1.15.29 (Records Management, Records Control Schedule for Tax Administration - Wage and Investment Records). (7 Years)

3.17.15.7.30  (10-01-2011)
Account 6920 Disbursement Write-Off

  1. This account provides internal control and accountability for disbursement losses.

  2. When relief is granted this account will be debited to provide credit to the 4910 Account, Disbursement Loss.

  3. This account should remain in the accounting area for 2 years, then send to Records Storage with a destroy date of 6 years 2 months after Fiscal year close. (Exhibit 1.15.29–1, Item Number 165)

3.17.15.7.30.1  (10-01-2011)
Account 6920 Review Procedures

  1. Review case folders.

  2. Ensure all supporting documentation is secure file.

  3. Ensure the case file is within 2 years of write-off otherwise follow procedures from IRM 3.17.15.7.28 (3) above.

3.17.15.7.31  (10-01-2011)
Account 6950 Department of justice (DOJ) Collection Hold-back
(Kansas City Only)

  1. Each year the Appropriations Act for the Department of Justice (DOJ) authorizes DOJ to retain 3% of all amounts collected pursuant to the DOJ's civil debt collection litigation activities.

  2. Account 6950 is used to record and journal the 3% amount retained by DOJ.

  3. Forms 3809 are the external subsidiary.

3.17.15.7.31.1  (10-01-2011)
Account 6950 Review procedures

  1. The Reports Analyst must review this account monthly to ensure that the journaling and balancing actions are accurate and timely. Refer to IRM 3.17.243 (Miscellaneous Accounting) and IRM 3.17.63 (Redesign Revenue Accounting Control System) for detail processing of this account.

  2. Pull a random sample of closed folders to review. The folders are filed in IPAC Reference number order (e.g. 14436949). Use a check sheet as part of the review process.

  3. Each folder will include:

    1. DOJ IPAC Paid Billing Statement with received date stamped (DMOPACR3–1)

    2. DOJ IPAC Support Listing (DMOPACR3-B)

    3. IPAC Transaction Report

    4. Routing Slip with journal number stamped

    5. Form 3210 (listing DLN's and the number of items)

    6. Form 2424

    7. IDRS Prints

    8. Form 813

  4. Using the IPAC Support Listing, turn to the last page and find the total amount for the 3% fee. This is the amount RACS will journal to the 6950 account.

  5. Run a tape to ensure the total of all tax Class 3% amounts equal the IPAC 3% fee total. e.g. Master File Tax (MFT) 01 = TC 1, MFT 30 = TC 2, etc..

  6. Pull Form 8166 and DPS to verify journal action for 3% total.

  7. Pull Form 3809 to verify 3% total.

  8. Check the Balancing Group 6950 monthly General Ledger and spreadsheet for any open journal action not processed timely.

  9. Provide a copy of the Reports Analyst review summary to management.

3.17.15.7.31.2  (10-01-2011)
DOJ Criminal Restitution Payments Review Procedures
(Kansas City Only)

  1. At least one program review must be performed each quarter by the first line manager and the Reports analyst.

  2. The review should:

    • Verify checks received from the clerks of courts are processed timely

    • Verify Forms 14104 are received timely from the Special Agents and are in the case file

    • Ensure case folders are prepared, for each defendant, as required by the IRM 3.17.243 (Miscellaneous Accounting)

    • Ensure all actions taken are documented on the history sheet

    • Confirm history sheets are signed and dated by the Technician working the case

    • Confirm history sheets have been signed and dated by the manager and the reports analyst when reviews are performed

    • Verify all money received is documented in the case history and recorded in the DOJ access Application

    • Ensure all appropriate journal actions are completed timely

    • Verify all inquiries regarding the receipt and application of payments are being handled on a timely basis

  3. Quarterly reports are required and should be retained in the RACS Unit.

    1. The reports should capture the total number of "Unknown" cases and money amount; separate by month, also,

    2. The total "Unknown" cases associated with an active case and money amount

  4. Quarterly reports are due December, March, June and September.

3.17.15.7.32  (10-01-2011)
Losses and Shortages

  1. The following are the three Losses and Shortages accounts:

    • Account 7610 - Embezzlement, Thefts and Negligence

    • Account 7620 - Unexplained Losses

    • Account 7650 - Deposit Discrepancies

  2. These accounts are supported by individual records in the Losses and Shortage file within RRACS. Each individual record requires its own Doc ID. Unless known to be otherwise, tax class will always be 2.

  3. Source documents related to the losses and shortages are:

    • Form 3244

    • Memorandum granting relief for losses or shortages other than by payment

    • Memorandum or letters stating losses or shortages

    • Form 2424

    • Form 813

3.17.15.7.33  (10-01-2011)
Account 7610 Embezzlement and Thefts

  1. This asset account is used to record cash shortages of collections, losses from robbery or theft, embezzlement of collections, and counterfeit bills. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include:

    • TIGTA Memorandum

    • TIGTA Report of Investigation (ROI)

    • Copy of document transferring credit to the injured Taxpayer's Account

    • Transcript of injured Taxpayer's account showing the credit from the 7610 Account

    • Copy of the Preliminary Report and any Supplemental Reports

    • Copy of the internal controls in place at the time of the loss

    • Any internal control changes made

    • Copy of court documents

    • A list of any payments made or offsets

    • History of contacts with TIGTA, Court, Department Of Labor, Atlanta DOJ lockbox and any other areas/agencies

    • IRC Section 7804(c) assessment documents (non-court case)

  3. The Reports Analyst must review this account to ensure case files have required supporting document, and updated history sheets.

3.17.15.7.34  (10-01-2011)
Account 7620 Unexplained Losses

  1. This asset account is used to record unexplained losses. An unexplained loss is an apparent deposit discrepancy that cannot be collected under the Federal Claims Collection Act (FCCA). When the Service cannot establish the bank's liability for a deposit discrepancy, the loss is considered unexplained. Unexplained losses of $10,000 or more require Treasury's approval.

  2. This account is supported by case history files covering the details of each recorded collection loss or shortage. Case history files will include:

    • Copies of the debit voucher

    • Copy of the Deposit ticket

    • Copy of Form 813

    • Correspondence to/from depository

    • Correspondence to/from bank

    • Copy of Taxpayer's check (front/back)

    • Transcript of the Taxpayer's account

    • Historical record of attempts to resolve the discrepancy

  3. This account is included in the accountability of the accountable officer.

  4. The Reports Analyst must review this account to ensure case files are complete with required supporting documentation and updated history sheets.

3.17.15.7.35  (10-01-2011)
Account 7650 Deposit Discrepancies

  1. This asset account is used to record amounts of deposit discrepancies which are discovered by the depositories. This account may also be used when the Payment Tracer function has unresolved encoding errors, where extensive research has been completed, and the credit cannot be located. These items are considered true deposit shortages for accountability purposes. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. Account 7650 is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files may include:

    • Copy of the debit voucher

    • Copy of the Deposit ticket

    • Copy of Form 813

    • Correspondence to/from depository

    • Correspondence to/from bank

    • Copy of Taxpayer's check (front/back)

    • Transcript of the Taxpayer's account

    • Historical record of attempts to resolve the discrepancy

  3. This account is included in the accountability of the accountable officer.

  4. Review the 7650 account monthly to make sure bank contact is timely and identify discrepancies that require relief. Unresolved cases over $1,500 are sent to Counsel for a recommendation to file suit or stop collection action against the depository. If Counsel recommends termination of collection action, administrative resolution under Delegation Order 1–25 or the Department of Justice (DOJ) is requested.

3.17.15.8  (10-01-2011)
Review of Miscellaneous Items

  1. Daily, research SP intranet for:

    1. Servicewide Electronic Research Program /Information Alerts

    2. IRM Updates

3.17.15.8.1  (03-12-2012)
Non-Master File (NMF)
(Cincinnati Only)

  1. Reviewing the NMF Accounts

    • Perform Trend Analysis on various reports retained from both ANMF and RRACS system.

    • Analyze and identify problem areas and/or procedural issues.

    • Ensure NMF accounts are balanced monthly with the General Ledger Accounts.

    • Perform periodic reviews on documents posting to ANMF: Abatements, manual refunds, closing agreements, Forms 2424 and Form 3809.

    • Review the above documents for timeliness of receipt and input.

    • Ensure IRM 3.17.46 (Automated Non-Master File Accounting) procedures are being followed.

    • Perform written quarterly reviews for manager and include recommendations to resolve issues.

3.17.15.8.2  (10-01-2011)
Taxpayer Advocate Service

  1. The Submission Processing (SP) sites are responsible for working with the Taxpayer Advocate Service to resolve taxpayer issues.

  2. Cases are sent to SP via Form 12412, Operations Assistance Request (OAR). Their goal is to provide high quality account resolution and to enhance consistent application and enforcement of standards for taxpayer.

  3. The responsibility of the Reports Analyst is:

    • Monitor and control all Taxpayer Advocate Service case files referred to Accounting.

    • Verify the accuracy and timeliness of the request.

    • Assign the Taxpayer Advocate Service case to the appropriate team.

    • Quarterly, provide management a report of all open and aged Taxpayer Advocate Service cases.

3.17.15.9  (10-01-2011)
Score Card

  1. The scorecard is for accounting use only. It is used to track the timely submission of the RRACS reports to CFO, establish controls/checks and balances to ensure time lines are met.

  2. CFO Scorecard

    • SF 224

    • Supplemental SF 224

    • Statement of Difference

    • Form 3997

    • Trace ID

  3. Rating criteria:

    • GREEN- Submitted timely to all contacts, with all supporting documentation attached.

    • YELLOW- Submitted within suggested time line; missing some supporting documentation.

    • RED- Not submitted timely to all contacts; missing supporting documentation.

3.17.15.9.1  (03-12-2012)
CFO Score Card - SF 224

  1. SF 224 Timely Submission

    • Green- 12:00 PM local time submission on Second business day.

    • Yellow- From 12:01 PM to 2:00 PM local time submission on Second business day.

    • Red- After 2:00 PM of the second business day local time submission.

  2. Potential 224 Problems:

    • Error on submission due to someone posting after 224 is generated in RRACS.

    • Request from FMS for additional Supplemental.

    • FMS system problems (will not reflect yellow or red).

    • Password problems.

    • Connection problems to FMS that were not checked.

    • Ensuring eligible users are certified.

3.17.15.9.2  (06-19-2012)
CFO Score Card - Statement of Difference

  1. On Time Submission

    • Green- Due from FMS on the 18th of the month, DBA has 3 work days to complete.

    • Yellow- Due from FMS on the 18th of the month, DBA completes in 4 or 5 workdays.

    • Red- Due from FMS on the 18th of the month, DBA completes in 6 workdays.

  2. Statement of Difference - Completeness

    • Green- All columns of information provided and accurate.

    • Yellow- Missing details or errors on 5 or less rows of differences.

    • Red- Missing details or errors on more than 5 rows of differences.

  3. Statement of Difference - Supporting Documentation

    • Green- Supporting backup for all of the required three audit months or older differences. Supporting backup for all disbursement items.

    • Yellow- Supporting backup missing for up to two items. (backup required for deposit items with audit month three months or older and all items in disbursements.

    • Red- Missing supporting backup for more than two items (backup required for deposit items with audit month three months or older and all items in disbursements.

  4. Statement of Difference - Agrees to Details

    • Green-Balances to GWA. Items listed must agree to backup/source information. .

    • Yellow- No yellow option available

    • Red- Does not balance to GWA. Items listed do not agree to backup/source documentation.

  5. Statement of Difference - Older than Three Months

    • Green - No Items older than three months.

    • Yellow -Items four or five months old.

    • Red -Items older than five months.

3.17.15.9.3  (03-12-2012)
SP/CFO Score Card - Form 3997

  1. 3997 - On Time

    • Green- Due on the 25th of the month.

    • Yellow- Received between the 26th and 27th.

    • Red- Received on or after the 28th.

  2. 3997 - Completeness and Accuracy:

    • Green -Complete and Accurate information provided for all columns.

    • Yellow -Incomplete and/or Inaccurate information on 5 or less items.

    • Red -Incomplete and/or Inaccurate information on more than 5 items.

  3. 3997 - Supporting Documentation

    • Green -Supporting backup for all aged reconciled and unreconciled.

    • Yellow -Supporting backup for aged reconciled and unreconciled except for one item..

    • Red -No supporting backup for aged reconciled and unreconciled items, or more than one item missing.

  4. 3997 - Signature

    • Green -All parties Signed.

    • Yellow -No yellow option available.

    • Red -Not all parties signed.

  5. 3997 - Aged Reconciled Items:

    • Green- No aged reconciled items.

    • Yellow- One or more aged reconciled items reported for the first time.

    • Red- One or more aged reconciled items reported two or more consecutive times.

  6. 3997 - Unreconciled Items:

    • Green - No unreconciled item(s) or unreconciled item(s) reported for the first time.

    • Yellow - One or more unreconciled item(s) reported for the second or third consecutive time.

    • Red - One or more unreconciled item(s) reported for four or more consecutive times.

3.17.15.9.4  (03-12-2012)
CFO Score Card-Trace-ID

  1. Trace-ID-Timely Submission:

    • Green-On the due date provided by CFO.

    • Yellow-On the following workday after due date provided by CFO.

    • Red-On the second workday after due date provided by CFO.

  2. Trace-ID-Completeness:

    • Green-All column information provided.

    • Yellow-Missing details on five or less transactions.

    • Red-Missing details on more than five transactions.

  3. Trace-ID-All Items Have Been Reconciled

    • Green-All columns information provided.

    • Yellow-Error type "Z" indicated on five or less transactions.

    • Red-error type "Z" indicated on more than five transactions.

  4. Trace-ID-All Managers Have Been Contacted

    • Green-All managers have been contacted. (YES)

    • Yellow-No yellow option available.

    • Red-All managers have been contacted. (NO)

  5. Trace-ID-Signature

    • Green-All parties signed. (Preparer/Reviewer)

    • Yellow-No yellow option available.

    • Red-Not all parties signed. (Preparer/Reviewer)

3.17.15.10  (06-07-2012)
Trace ID

  1. The Trace ID requires 14 digits to be put into the RRACS system. The 14 digit Trace ID should not be all zeros.

  2. The campuses are required to review the RRACS-017 (DTDV Report) before end of month (EOM) processing to ensure that the Trace ID have the required 14 digits.

  3. If any modifications to the Trace ID are necessary, they must be completed within the monthly processing accounting period.

  4. Trace ID numbers for:

    • DCF Debit Vouchers (DV)

    • Dishonored Checks/Returned items

    • Deposit Tickets and Debit Vouchers (Adjustments)

    • Lost checks, encoding errors, enclosed not listed, etc.

  5. Debit Vouchers (Dishonored Checks/Returned Items) should get a new Trace ID number when received from the bank. Either the Dishonored Check function or the RACS function should generate the Trace ID number on the Batch/Block Tracking System (BBTS) depending on the flow of work at their site. The Trace ID number must be generated from BBTS with system ID 20 (IRM 3.17.10.2.3.2 (Dishonored Check File (DCF) and Unidentified Remittance File (URF)).

  6. Bank Discrepancies DV or DT (lost check, encoding error, enclosed not listed, etc.) should also get a new Trace ID number when received from the Bank. The function to generate the Trace ID number on BBTS will depend on the flow of work at their site (either DCF function or RACS function or whatever function at the site processes the Bank Adjustments). The Trace ID number must be generated from BBTS with System ID 25.

  7. Manual Deposit Tickets, the Trace ID Number is assigned by BBTS. The first 14 digits represent the DT Trace ID Number and the last 6 digits represent the Transaction Sequence Number of each individual payment that comprises the Deposit Ticket. System Id "15" will be used for manual deposits. (IRM 3.8.45.2.3, Manual Deposit Process ).

    Note:

    Trace ID Number for Tracking Credits, refer to IRM 3.17.220.1.9 (Excess Collections File).

  8. The RACS Manager/Reports Analyst will contact the function that caused the Trace ID mismatch, and verify that actions are taken to prevent mismatch from reoccurring. Indicate in Column "J" only yes or no.

3.17.15.10.1  (06-07-2012)
Trace ID Review Procedures

  1. This report is received from CFO with columns A thru H completed. This report must not be altered. All Trace ID's must remain on this report. This report will be used to alert the service center , CFO and SP HQ of any imbalances between Trace ID's and any processing problems within the service center. Effective immediately, the RACS Team will only reconcile imbalances that are $100,000 or greater.

  2. After the technician researches and completes columns I, J, and K of the Trace-ID report, they will initial as the preparer.

  3. The Lead or the Manager of the employee preparing the report will review to ensure that all out of balance conditions have the correct error codes which may require reviewing the backup documentation on the haphazard basis, detail explanations exists, and the report has been signed by the preparer.

  4. The Report is then sent to the Reports analyst who will pull a sufficient sample amount for their review.

  5. Of the sample collected they will review column "I" , Trace ID Error Type, to ensure proper error types were given. They will also verify column "J" was completed, indicating the function(s) that caused the Trace ID mismatch was contacted (All FUNCTIONS MUST BE CONTACTED by the 20th workday). The comments, Column "K" should be reviewed to verify details are given regarding research efforts and resolution in identifying cause of Trace ID mismatch. .

  6. The Reports analyst will check for signatures and ensure the report has been timely completed, reviewed and signed prior to being sent to the Operations Chief for signature.

  7. The Reports analyst will return the report to the RACS Team for the correction of any discrepancies that are found.

3.17.15.11  (03-12-2012)
Points of Contact

  1. Headquarters Submission Processing Accounting Contacts:

    Chief, Accounting and Tax Payment Branch
    Tony A Martinez

    Chief, Service Center Accounting and Deposit Section
    Tommy Hunt

    • Sharon Andrews, Service Center Accounting Section Senior Analyst

    • Cathy Andrews, SC Deposit and DCF

    • Susan Hankerson, Losses & Shortages

    • Edna Banks, Field Deposits

    • Mary DeLuca, Non-Master File

    • Sarah Stanton, Excess Collections, & Unidentified

    • Rebecca Rouse, DOJ and Subsidiary Account Reviews

    • Rick Holmes, SC Deposit

    • Kendall Crosby, Erroneous Refunds

    • Crystal Noble, Credit and Account Transfers

    • Janet Bertagnoli, Manual Refunds

    • Ronnie Maldonado, Hard-core Payment Tracers

    • Kathy Philipp, Data Control & SCCF

    • Michele Atkins, RRACS for Cincinnati, Brookhaven, & Memphis

    • Susan Hankerson, RRACS for Austin, Fresno, & Andover

    • Michael Magana, RRACS for Ogden & Philadelphia

    • Rebecca Rouse, RRACS for Atlanta & Kansas City


Prev

More Internal Revenue Manual