Part 3. Submission Processing

Chapter 17. Accounting and Data Control

Section 63. Redesign Revenue Accounting Control System (Cont. 1)

3.17.63  Redesign Revenue Accounting Control System (Cont. 1)

3.17.63.5 
Redesign Revenue Accounting Control System (RRACS)

3.17.63.5.4 
Error Conditions

3.17.63.5.4.1  (01-01-2007)
Correcting Erroneous Journal Entries

  1. Whenever an error in journalization is discovered, supervisory authorization is required for the correcting entry to the general ledger account.

  2. The authorization must be documented and retained by the manager. The documentation should include the original journal number, the reason for the reversal, and the managerial approval.

  3. The incorrect entry should be reversed by the DBA, then re-input by the technician who made the original incorrect entry (when possible). On the reversal journal, the DBA must include the original journal number and an explanation in the message text. On the correction journal, the technician must include the original journal number and reversal journal number, along with an explanation in the message text. To ensure adequate audit trail information, the technician will also notate (pen & ink) the reversal journal number and the correction journal number on the Daily Posting Summary (RACS Report-001) next to the original journal number.

3.17.63.5.4.2  (07-27-2010)
RRACS Authorized Access

  1. RRACS Managers must conduct weekly reviews of the RRACS Authorized Access List/Violations Report to validate system access for the individuals listed.

  2. Managers should utilize their local Resource Access Control Facility Coordinator for pulling of user access reports.

3.17.63.5.5  (07-27-2010)
Reports

  1. Reports are produced automatically from RRACS. These reports are pre-formatted in the system and generated upon command from the Reports main menu except where noted.

3.17.63.5.6  (10-01-2004)
Print Commands

  1. If a report is generated through the Reports main menu, FTD, or Assessment icons, it can be re-printed by using the Print option on the Reports main menu. Select Batch to reprint any EOD, EOM, or Misc report. Select online for daily wire, assessment certificates, abatement report and the supplemental SF 224. A maximum of 39 online reports is listed.

  2. To print the Daily Trial Balance from the Trial Balance window:

    1. Input the appropriate account period (the default account period is pre-selected).

    2. Select Print from the Action Bar.

  3. To print journal research:

    1. Display the needed source journal or journal control number.

    2. Select Print from the Action Bar.

3.17.63.6  (10-01-2004)
Revenue Accounting

  1. Taxpayer accounts installation of the MF system necessitates the maintenance of two categories of taxpayer accounts for the types of tax liabilities and period, as prescribed in returns processing procedures.

    1. MF and CADE accounts: Taxpayer accounts established and entered into the MF records.

    2. NMF accounts: Taxpayer accounts which have not been prescribed for entry into the MF records, but are processed at the campus.

  2. Each campus is assigned revenue accounting responsibilities coinciding with its areas of administrative jurisdiction and legal accountability. The merging of computer output with manual operations is an economical and efficient method of producing required records and reports. The campus maintains double-entry general ledger accounts covering the varied revenue transactions, and provides for consolidated recording of assessments, collections, receivables, refunds, over-assessments, and other elements of revenue accounting on a campus basis.

  3. Reports will include required data for each field office and campus. Each general ledger account is numerically identified by a four-digit code. This code number is used when referencing a general ledger account, both in procedural instructions and on reports or other forms. A complete listing of the accounts prescribed for maintenance in the general ledger is contained in the Chart of Accounts.

  4. The campus reporting requirements incident to accounting operations are summarized as follows:

    1. Financial reports are prepared or processed periodically by the campuses and furnished to NHQ and FMS for use in publishing consolidated reports, and for evaluating operations. The data for these reports are obtained from the general ledger account information or are contained in computer-generated or manual output relative to taxpayer accounts.

    2. These reports provide NHQ with information pertinent to budget justification, and with required volume statistics covering the varied operational areas. See IRM 3.17.41.

  5. Internal Control Management has the responsibility for providing a system of financial control which, in practice, includes those elements of internal accounting control necessary to assure compliance with all administrative and legal requirements.

3.17.63.6.1  (07-27-2010)
Ledger Classification

  1. Ledger classification is a unique identification contained in RRACS indicating how money or items post to the IRS general ledger accounts, tax class, appropriation symbols, recap and NTRR line numbers, deposit source codes, and types of input documents.

  2. If a transaction fails any of the validation tests, a message will be displayed on the window via an information box indicating the appropriate corrective information or that the transaction has failed. Data that passes all validation tests will update RRACS.

  3. Each transaction received by the windows or batch will automatically be assigned a journal number which will be displayed on the window. This journal number will be used by the terminal operator to cross reference the input documents with the transaction.

3.17.63.6.2  (07-27-2010)
Document Preparation

  1. Certain document preparation procedures must be performed prior to input on the RRACS terminals. For certain windows, a volume of source documents is used for a single input. On other windows, two or more source documents must be balanced against each other. A number of the windows are input directly from the source documents.

  2. F8166 has been developed for the purpose of consolidating volume source documents for a single input or for reconciling source documents when a combination of documents are used as input.

  3. Assign a number to the F8166. Maintain log books for these numbers. For individual windows that specify F8166, use the reconciliation sheet number as the Doc-id.

  4. Use F8167 as a continuation sheet to F8166 when more space is necessary. Use the same date and number on the F8167.

  5. The RRACS input terminals display the journal numbers of each transaction when the posting to the database has been completed. These journal numbers will be used to cross-reference documents. When the reconciliation sheet is used, the journal number(s) will be recorded on the reconciliation sheet. The reconciliation sheet number may also be used as a cross-reference on the source documents in order to expedite processing, as long as the F8166 is stamped with the journal number after input to RRACS.

  6. There is a maximum of 75 source journals per posting number. This includes the reclassification and application posting necessary for a complete journal.

3.17.63.7  (10-01-2004)
RRACS Processing Accounting Applications

  1. The accounting application windows are used to record the transfer of debits/credits between various general ledger accounts and between campuses.

3.17.63.7.1  (07-27-2010)
RRACS Inventory Accounts

  1. RRACS must never contain any taxpayer information, therefore, never use TINs or any other identifying information, for Doc-ids/case numbers, etc.

  2. On all inventory accounts, never use a DBA reversal window to reverse any action or a modification window to correct an open case. It is necessary to close and then reopen the case.

  3. On all inventory accounts that are open over 30 days, maintain a history sheet to document actions taken.

3.17.63.7.2  (10-01-2004)
Account Adjustments

  1. Debit/credit transfers of revenue receipts between taxpayer accounts or modules will be accomplished by using an F2424. The document code is 24 or 34. Debit/credit transfers of non-revenue receipts between taxpayer accounts or modules are done on F3809. See IRM 3.17.243.

3.17.63.7.2.1  (10-01-2004)
Substantiated Credits

  1. Substantiated credit transactions are initiated by taxpayer submission of a receipt, canceled check, or other acceptable document, substantiating a claimed payment or credit. The term substantiated payment is limited to payments that are satisfactorily substantiated, but the payment application cannot be identified and transferred to the correct account. Use of the substantiated payment procedure should be infrequent.

3.17.63.7.2.2  (07-27-2010)
Debit and Credit Transfers

  1. F2424 and F3809 with related F813 are received for manual transfers. Transfers can be made between BMF Account 4120, IMF Account 4220, and NMF Account 4420. When transfers are made through IDRS, the recap from IDRS will be treated as an F2424 or F3809, as applicable. Separate transfers into like batches, such as IMF to NMF, NMF to IMF, BMF to NMF, etc.

    1. Pull F813, Part 2, for input to SCCF.

    2. Forward F813, Part 1, and documents for MF to Batching for processing.

    3. Route NMF documents to NMF for input to the ANMF-generated recap.

      Note:

      "If manual journalization is needed Route recap to RRACS for input. "

      .

    4. Run tape on each batch of debits and credits to ensure each set is in balance.

  2. Entries can be made from individual F813 (2-part), one block at a time, or from F8166.

  3. If F8166 is used, the control number will be the sheet number from it.

  4. Reclassify, if necessary. Use the journal number as Doc-id for an audit trail. Transcribe or stamp journal identification numbers on F8166.

3.17.63.7.2.3  (07-27-2010)
NMF Subsequent Transactions Debits

  1. The following procedures are used to process debits from SCCF:

    1. Receive F813, Part 2, with NMF Block Summary blocks on the back, and Form 3624 or Form 514-B, Recap for Pre-Journalized Documents.

    2. Receive NMF Recap for F5147-CG. F4861 will be prepared for each block of computer F5147-CG which are set up on the NMF SCCF from IDRS input. F4861 serves the same purpose as the back of F813 in providing information for creation of the NMF TDCS.

    3. Prepare reverse of Part 2 or front of F4861 using normal procedures except, for any additional assessments, list principal, penalty and/or interest. Total of each will be necessary for input.

    4. Input form F813 data to ANMF F813 Block Control screen.

    5. Make entries from individual F813, one block at a time, from RRACS Input Reconciliation Sheets or NMF recap.

    6. Transcribe or stamp journal identification number on related documents. Input journal number to update journalized RRACS recap screen on ANMF.

  2. Debits from NMF Unpostables Account 4430 will be processed using normal procedures.

    1. Entries will be made from NMF recaps or F8166s.

    2. Transcribe or stamp journal identification number on NMF recaps for audit trail.

    3. Input journal number to update journalized RRACS recap screen on ANMF.

3.17.63.7.2.4  (07-27-2010)
NMF Subsequent Transactions Credits and Abatements

  1. The following procedures are used to process credits from SCCF:

    1. Receive duplicate copy of F813, (2-part), with NMF Block Summary blocks on the back and Form 3624.

    2. Receive F5147-CG and NMF recap.

    3. Prepare F4861 for each block of F5147s-CG which are set up on the NMF SCCF from campus input of payments through IDRS via CC PAYT. F4861 serves the same purpose as the back of duplicate copy of F813 in providing information for creation of the NMF TDCS.

    4. Prepare the back of F813 or front of F4861 using normal procedures except, for any assessments, list principal, penalty, and interest in separate columns with totals for each. Each general ledger account amount and each sectional control amount must be listed and a separate total taken for each.

    5. Input F813 data to ANMF F813 Block Control screen. Entries can be made from each F813, one block at a time, from the F8166, or from the NMF recap.

    6. Transcribe or stamp journal identification number on all related documents.

    7. Input journal number to update journalized RRACS recap screen on ANMF.

  2. NMF credits to Unpostables Account 4430 are processed using normal procedures. Entries are made from individual documents or NMF recaps. Transcribe or stamp journal identification number on NMF recaps for audit trail.

  3. NMF abatements scheduled on F2188s are journalized into Account 4440 as follows:

    1. Input F813 data to ANMF F813 Block Control screen.

    2. Journalize the abatement credits from the abatement suspense account to the proper NMF status or other account (including uncollectible) through the Accounting Application main menu.

      Note:

      "If manual journalization is needed, entries are made from the ANMF recap or F8166."

    3. Transcribe or stamp journal identification number on related F1331s, NMF recap, or F8166 for audit trail.

    4. Input journal number to update journalized RRACS recap screen on ANMF.

  4. Occasionally there may be a transfer of a credit from one general ledger account to another without going through SCCF. There may also be a transfer from a general ledger account to an NMF status or uncollectible account without going through SCCF. Entries are made from the NMF recap. Transcribe or stamp journal identification number on the NMF recap and input journal number to update journalized RRACS recap screen.

  5. Transfers from Manual Assessment, Transit Account 1600 may be required. The unpaid balance of all manual assessments is initially established in Account 1600.

    1. Receive NMF assessment recap to transfer NMF assessment to NMF status.

    2. Transcribe or stamp journal identification number on source document for audit trail.

3.17.63.7.2.5  (01-01-2007)
NMF Accounts Written-Off

  1. NMF accounts written-off are journalized through the Accounting Application main menu.

    1. Small Debits Cleared Debit Account 6540; credit not limited to any one account.

    2. Small Credits Cleared Credit Account 6540; debit not limited to any one account.

    3. Status 53 Debit Account 1830; credit 13XX, NMF Accounts Receivable.

    4. Reversal of Status 53 Debit Account 13XX; credit Account 1830, NMF Status Identified. For reversals of write-offs in prior fiscal years, debit Account 1830 and credit Account 9998.

    5. NMF Account Statute cleared Debit Account 6600; credit Account 1830.

    6. Reversal of NMF Account Statute Cleared Debit Account 1830; credit Account 6600.

3.17.63.7.3  (01-01-2007)
Applications From Unidentified Revenue Receipts

  1. Receive the following unidentified listings and documents:

    1. URF03.

    2. EOD16, Page 1-current fiscal year URF applies.

    3. URF05.

    4. F4830.

    5. Other back-up documents, letters, and memos.

  2. IDRS tape processing journalizes current and prior fiscal year URF applications from the EOD16. The Unidentified Apply window should be used in the event of a tape failure.

  3. Balance and process using normal procedures.

  4. MF Applications:

    1. Verify that URF05 balances with Page 1 and 2 of EOD16 in total amount applied.

    2. Add all tax class 2 items and amounts, and all tax class 4 items and amounts (on Page 1 of EOD16), so there is only one item and amount total for each tax class for reclassification purposes.

    3. Journalize from the URF05 for SCCF suspense accounts, and from Page 1 of EOD16 for reclassification purposes, and Page 2 of EOD16 for prior date amounts.

    4. Transcribe or stamp journal identification number on all listings for audit trail.

  5. NMF Applications:

    1. F4830s are generated on NMF applies.

    2. Number and prepare F813 (2-part) per current instructions.

    3. Make entries from URF03, NMF applications form the URF, and F813 for NMF suspense account.

    4. Recap any reclassification necessary prior to going to terminal.

    5. Transcribe or stamp journal identification number on listing URF03 for audit trail.

  6. Dishonored Checks on Unidentified Remittances:

    1. Unidentified will void these off the URF with "D" apply. On the same day, the Dishonored Check function will void off the DCF.

    2. Make entries from URF03 and DCF03 to NMF suspense account. Entries are not set up on the NMF SCCF.

    3. Reclassify. Decrease tax class 2 and increase tax class 1. No reclassification will be made on the DCF apply.

    4. Transcribe or stamp journal identification number on the URF/DCF listings and/or documents for audit trail.

  7. Applications can be made from other accounts such as 1510 (Other Receivables, Regular), 1720 (Dishonored checks, ADJ.), 1830 (NMF Account Receivable, Inactive), 6570 (Substantiated Credits Allowed), 6800 (Excess Collection) and 76XX (Losses and Shortages).

    1. Unidentified will void off the URF with a "V" apply.

    2. Make journal entries from URF03 to the applicable account.

    3. Ensure that all necessary back-up is received. Each of these accounts has their own requirements for back-up documentation. Supporting documentation for Account 6800 can be found in IRM 3.17.10. Supporting documentation for Accounts 76XX can be found in IRM 3.0.167. Supporting documentation for the other accounts can be found in IRM 3.17.63, under the description of each individual account.

    4. Transcribe or stamp journal identification number on URF listing and, if required by local procedures, on all documents.

3.17.63.7.3.1  (01-01-2007)
Applications From Unidentified Miscellaneous Funds

  1. Entries will be made from the URF03 for total amount of applications.

    1. Make journal entries to applicable funds from F4830s and/or appropriate source documents received from Unidentified.

    2. Any refund repayments going to taxpayers' accounts will be numbered and an F813 prepared. Entries to suspense accounts will be made from F813.

    3. If the item is a deposit fund application, it must have a Doc-id.

    4. Unidentified items being applied to any of the miscellaneous funds must be reclassified.

3.17.63.7.4  (10-01-2004)
Dishonored Check Applications

  1. Receive the following DCF computer listings and documents:

    1. EOD16, Pages 9 and 10.

    2. DCF05.

    3. DCF03.

    4. F4830s.

    5. SF 215-ADeposit tickets on redeposits or discrepancy washouts.

  2. Current balancing procedures must be completed before going to the terminal to enter data.

  3. EOD16 and DCF05 amounts should balance. These include the DCF applications to the MF accounts, both current and prior fiscal year.

  4. Entries should be made from Pages 9 and 10 of EOD16. Current FY applications, Page 6, requires reclassification. The net reclassification to each tax class should be computed before going to the window for input. This will be a net increase to tax class 1 and net decrease to all other tax classes involved, since DCF applications are debits. IDRS tape processing includes the journalization of prior and current year DCF applications and related reclassification of CFY. Transcribe or stamp journal identification number on listings.

  5. Restricted applications from the DCF should include corrections to previous input errors or deletions from the DCF because of redeposits. For all redeposits, a deposit ticket will be received.

  6. Corrections to previous input errors will be "V" applies or "Z" applies. A "V" apply deletes a record completely and "Z" apply changes the amount. These should require no journalization, but should balance the DCF with previously journalized amount.

3.17.63.7.4.1  (01-01-2007)
Non-Master File Applications From DCF

  1. NMF applications from the DCF will generate F4830s, which may include TC 280, Dishonored Check Penalty (it is not necessary to prepare a F3465 to journalize the dishonored check penalty). The F4830s will be numbered as NMF debits and F813 (2-part) will be received. Photocopy F813 (2-part).

    1. Use the photocopy of the F813 for processing through the NMF TDCS. F813 will remain with the documents.

    2. Balance F813, Part 1, to DCF Transaction Register of NMF applications.

    3. Input from DCF Transaction Register of NMF applications and to NMF suspense account from F813.

    4. Journalize any TC 280 to the appropriate general ledger Account 61XX, for tax penalty assessment.

    5. Annotate DCF03 with journal numbers for audit trail.

    6. Reclassify, if applicable.

3.17.63.7.4.2  (10-01-2005)
Dishonored Checks on Miscellaneous Deposits

  1. Dishonored checks may be received on the following:

    1. Deposit FundsAccount 7002.

    2. General FundsAccount 23XX.

    3. Refund RepaymentsAccount 2410.

    4. Off-shore Oil FeesAccount 2600 (Austin only).

  2. Any record on the DCF for one of these accounts should be voided and entries made from DCF03. Source documents are required for each of these.

  3. Reclassification will be required. Increase revenue receipts by tax class and decrease applicable miscellaneous fund. Use journal number as Doc-id for audit trail. Transcribe or stamp journal identification number on listing and/or documents for audit trail.

3.17.63.7.4.3  (07-27-2010)
Dishonored Checks on Unidentified Remittances

  1. RRACS will make entries from DCF03 to NMF suspense account. Nothing will be set up on the NMF SCCF. On the same day, entries should be made from the Unidentified Remittance account to NMF suspense. Transcribe or stamp journal identification number on listing and/or documents for audit trail.

3.17.63.7.5  (10-01-2004)
ECC Applications Tapes to ECC (Mainline and IDRS)

  1. IMF and BMF TEP controls are received for MF mainline and IDRS good transactions to tape. The controls may be one or a combination of the following:

    1. GMF 1545.

    2. SCF 1152.

    3. SCF 1151.

    4. SCF 1340.

    5. GUF 5342.

  2. Enter the debit amount and credit amounts. Enter the net amount. If source document is other than GMF 1545, the net amount must be calculated.

3.17.63.7.5.1  (10-01-2004)
Corrected Unpostable Transactions

  1. One of the following corrected unpostable controls may be received:

    1. GMF 1545.

    2. GUF 5340.

  2. Enter the debit amount, the credit amount, and the net amount from GMF 1545, corrected unpostables line, or from the GUF 5340, total corrected unpostables line.

3.17.63.7.5.2  (10-01-2004)
ECC Deletes

  1. Receive accountability acceptance voucher or locally established documentation of deletes by ECC. Separate entries are required for each MF. Enter related debit or credit amounts deleted by ECC.

3.17.63.7.6  (01-01-2007)
Credit Transfers

  1. Credit transfers between NMF and MF accounts, and NMF to NMF, within the same campus, will be accomplished by using either a F2424 or F3809.

  2. Credit transfers from NMF to NMF accounts between campuses will be accomplished by using a F2158. F2158 has a maximum processing cycle of 6 workdays from the date received in accounting, per IRM 3.30.123.

3.17.63.7.6.1  (10-01-2004)
Credit Transfer Out Form 2158

  1. Credits applicable to taxpayer accounts in other campuses are often received. Credits on IMF or BMF are offset in the MF posting runs and journalized from the SC Recap. Available credits not on one of the MFs will be transferred on F2158.

  2. Source documents for credit transfer may include, but not be limited to, the following documents:

    1. F3244.

    2. F2424.

    3. F1331.

    4. F4830.

    5. URF03.

    6. DCF03.

    7. Various subsequent transaction documents.

  3. Entries for transfers out will normally be made during routine document processing prior to the preparation of F2158.

  4. Maintain a log book for assigning F2158 numbers. Ensure that transfer clerk has all the information necessary to prepare the F2158. This includes the campus receiving the credit or debit, and the appropriation in which the credit or debit resides.

  5. Serial number for F2158 will be transcribed or stamped on the document prior to input.

  6. Journal identification number will be stamped or transcribed on the F2158 and any listing involved.

  7. Source document, with F2158 number and journal identification number, will be given to the transfer clerk for preparation of F3210.

  8. If the transfer is from the deposit funds, the deposit fund document number must be input. This number must match the deposit fund record.

3.17.63.7.6.2  (10-01-2004)
Credit Transfers In Form 2158

  1. Receive F2158, Parts 13, from other campuses. F2158 is normally used to transfer NMF credits between campuses. In some cases, abatements and debits are also transferred.

  2. Perform normal processing per IRM 3.17.243. Input from the individual F2158, Form 3624, or additional information from the original source document. Revenue receipt transfers should contain all information necessary for input.

3.17.63.7.6.2.1  (10-01-2006)
Credit Transfer Out Confirmed Form 2158

  1. Receive confirmed F2158, both revenue receipt and deposit fund transfers. Entries will be made from the confirmed F2158. Transcribe or stamp journal identification number on each confirmed F2158 for audit trail. F2158 cannot be rejected. If credit cannot be processed in the receiving campus, re-transfer on a new F2158 per IRM 3.17.243.

3.17.63.7.6.2.2  (10-01-2004)
Deposit Fund Transfers

  1. All deposit fund receipts must have a Doc-id; use the F2158 serial number. This number is essential for any subsequent processing of this deposit fund credit and must be transcribed on to the source document if not already there.

  2. Transfer must also be identified as either OIC, sale of seized property, or miscellaneous deposit fund. It is essential that this is clearly indicated on the source document for any subsequent processing. Transcribe or stamp journal identification number on F2158 for audit trail.

3.17.63.7.7  (10-01-2004)
Account Transfers

  1. A Form 514-B, or equivalent prescribed document, is prepared to transfer NMF accounts to the MF, and for reinstatement of accounts previously removed from the MF and presently on the Retention file. See IRM 3.17.243.

3.17.63.7.7.1  (07-27-2010)
Account Transfers Out Form 514-B

  1. Forms 514-B will be processed in accordance with IRM 3.17.243 prior to input to RRACS. "The Form 514-B or ANMF Transcript will be considered the source document for RRACS input. " .

  2. Form 514-B will be input individually using the Form 514-B number as the Doc-id. Each transfer out will contain the NMF status or other file from which the account is being transferred.

3.17.63.7.7.2  (10-01-2004)
Account Transfers In-Form 514-B

  1. Receive Form 514-B, and a copy of the NMF account, from transferrer campus. Process transfer schedules in accordance with IRM 3.17.243. Entries will be made from the file copy. All transfers-in are assigned a DLN.

3.17.63.7.7.3  (10-01-2006)
Account Transfers Out Confirmed- 514-B

  1. Confirm transfers out upon receipt of confirmed copies of Form 514-B. Record rejected Forms 514-B.

3.17.63.7.8  (07-27-2010)
TRACS Applications

  1. The following source documents are received for processing TRACS journals:

    1. IPAC bill for TRACS.

    2. TRACS listings.

    3. F813.

    4. Back-up documents to support the journal transaction needed.

  2. The following actions must be taken before input to RRACS:

    1. Verify the document number of the original TRACS IPACD or TRACS IPACR.

    2. Balance all back-up documents to the TRACS document total for a complete application.

    3. Verify all back-up documents are received.

    4. Check deposit fund document number.

3.17.63.7.9  (07-27-2010)
Erroneous Refunds

  1. The Erroneous Refund windows provide for the individual control and journalization of erroneous refund case files, after a determination is made as to the type of recovery necessary.

  2. There are two types of erroneous refunds: Account 1530, Court Case, and Account 1540, Non-Court Case.

  3. Each case is controlled with a unique document number on F3809. This document number allows for the tracking of an individual case from its inception to completion. It is a requirement to use the following format for the Doc-id (case control number), XXXX-XX-XXXX, (which consists of calender year, current ECC-MEM cycle of the erroneous refund, and sequence number), on all erroneous refunds as referenced in IRM 3.17.80. NOTE: Any site accepting new work due to consolidation, must use the first letter of the losing campus after the sequence number.

  4. The journal number must be stamped or written on all supporting documentation (e.g., F3809, F2424, etc.)

3.17.63.7.9.1  (10-01-2004)
Erroneous Refund Non-Payment

  1. When an erroneous refund is determined uncollectible the case will be transferred to Account 4910, Disbursement Loss. Complete documentation must be attached to explain why the case is determined to be uncollectible. This documentation will be used to support the request for relief.

3.17.63.7.9.2  (10-01-2004)
Erroneous Refund Cleared

  1. When relief is granted, Account 6920, Disbursement Write-Off, will be debited to provide credit to Account 4910, Disbursement Loss.

3.17.63.8  (07-27-2010)
Agency Transfers 1081JV INC, JV DEC

  1. The agency transfer windows are used to record transfers of funds between IRS and other government agencies. Source documents for input will include SFs 1081 not generated through the IPAC.

  2. Receive documents described above for input. Determine if document is a reportable item for the SF 224 report.

    1. SFs 1081 are not reportable when funds are received from another government agency.

    2. SFs 1081 are reportable on SFs 224 when funds are paid out from IRS to another agency, except when paid to Check Claims. SF 1081 to or from Check Claims will be reported by the Check Claims group on their SFs 224, charging and crediting Treasury Budget Clearing Account (20F3880.09). Campuses will not report these SFs 1081 on their SFs 224.

  3. SFs 1081 are journal vouchers reported under TAS 20F3880.09.

  4. When an SF 1081 is received, journalize to Account 4970 prior to research.

  5. Balance F813, Part 2, with SF 1081 and input into RRACS.

3.17.63.9  (07-27-2010)
Redesign Revenue Accounting Control Systems Chart of Accounts

  1. The Chart of Accounts makes up the general ledger. Accounts are arranged by accounting classification as follows:

    1. Accounts Receivable1000 Series.

    2. Receipt Accounts 2000 Series.

    3. Inventory Accounts 3000 Series.

    4. Liability Accounts 4000 Series.

    5. Disbursement Accounts 5000 Series.

    6. Assessment and Settlement 6000 Series.

    7. Other Assets 7000 Series.

    8. Work in Process Control Accounts 8000 Series.

    9. Ledger Closing Accounts 9000 Series.

  2. The numbers and titles of the IRS accounts in RRACS are as follows:

    Acct. No. Account Title Real
    or Nom.    		 Normal Bal.
    1000 Accounts Receivable    
    1100 BMF Accounts Receivable R DR
    1200 IMF/CADE Accounts Receivable R DR
    1205 CADE Accounts Receivable R DR
    1300 Non-Tax Accounts Receivable R DR
    1301 CADE Non-Tax Receivable R DR
    1321 NMF Notice R DR
    1322 NMF Taxpayer Delinquent Account Deferral R DR
    1324 NMF TDA Deferral Under Tolerance R DR
    1360 NMF Installment Agreement R DR
    1371 NMF OIC R DR
    1389 NMF Suspense R DR
    1400 Tax Accounts Transferred Out R DR
    1401 Accrued Interest on Taxes Receivable R DR
    1402 Accrued Penalty on Taxes Receivable R DR
    1403 Unpaid Compliance Assessments R DR
    1404 Accrued Interest on Compliance Assessments R DR
    1405 Accrued Penalty on Compliance Assessments R DR
    1406 Unpaid Write-Off Assessments R DR
    1407 Accrued Interest on Write-Offs R DR
    1408 Accrued Penalty on Write-Offs R DR
    1409 Unpaid Memo Assessments R DR
    1410 Accrued Interest on Memo Assessments R DR
    1411 Accrued Penalty on Memo Assessments R DR
    1510 Other Receivables, Regular R DR
    1530 Court Case Erroneous Refund R DR
    1540 Non-Court Case Erroneous Refund R DR
    1550 Injured Spouse Claims Allowed - Rec R DR
    1600 Manual Assessment, Transit Acct R DR
    1710 Dishonored Checks R DR
    1720 Dishonored Checks, Adjustments R DR/CR
    1810 BMF Accounts Receivable, Inactive R DR
    1815 CADE Accounts Receivable, Inactive R DR
    1820 IMF/CADE Accounts Receivable, Inactive R DR
    1830 NMF Accounts Receivable, Inactive R DR
    1840 Other Receivables, Inactive R DR
    2000 Receipt Accounts    
    2110 Withholding Revenue Receipts, Dir N DR
    2120 Ind Income Revenue Receipt, Dir N DR
    2130 Corporation Revenue Receipt, Dir N DR
    2140 Excise Revenue Receipt, Dir N DR
    2150 Estate and Gift Revenue Receipt, Dir N DR
    2170 CTA Revenue Receipt, Dir N DR
    2180 FUTA Revenue Receipt, Dir N DR
    2210 Withholding Revenue Receipt, FTD N DR
    2220 Ind Income Revenue Receipt, FTD N DR
    2230 Corporation Revenue Receipt, FTD N DR
    2240 Excise Revenue Receipt, FTD N DR
    2270 CTA Revenue Receipt, FTD N DR
    2280 FUTA Revenue Receipt, FTD N DR
    2305 No longer being used N DR
    2310 Treaty Country Receipts N DR
    2315 Arbitrage Receipt (Ogden Only) N DR
    2320 Miscellaneous Receipt N DR
    2325 Miscellaneous Forfeiture Receipts N DR
    2330 EP/EO User Fees (Cincinnati Only) N DR
    2335 Miscellaneous User Fees (Cincinnati & Ogden Only) N DR
    2340 Photocopy Fee N DR
    2345 Presidential election Campaign N DR
    2350 Public Debt N DR
    2355 Federal Court-Ordered Restitution N DR
    2360 Conscience Fund N DR
    2365 LIFO Payments (Cincinnati Only) N DR
    2370 Mortgage Subsidy Bond Receipt N DR
    2380 Original Installment Agreement N DR
    2385 Reinstated Installment Agreement N DR
    2390 Reserved    
    2395 OIC User Fees (Cincinnati, Memphis & Brookhaven Only) N DR
    2410 Refund Repay Principal N DR/CR
    2420 Refund Repay Interest N DR/CR
    2600 Oil Spill Receipts (Austin Only) N DR
    2800 Reserved    
    2900 Child Support Receipts N DR
    2910 IPAC Receipts N DR
    3000 Inventory Accounts    
    3200 Collateral Held (Ogden Only) R DR
    3300 Seized Property (Ogden Only) R DR
    4000 Liability Accounts    
    4110 ECC Suspense for MF - BMF R DR/CR
    4117 Accrued Interest on Taxes Receivable R CR
    4118 Accrued Penalty on Taxes Receivable R CR
    4120 SC Suspense for MF - BMF R DR/CR
    4121 Unpaid Compliance Assessments R CR
    4122 Accrued Interest on Compliance Assessments R CR
    4123 Accrued Penalty on Compliance Assessments R CR
    4125 EFTPS/FPLP Suspense for MF - BMF (Ogden Only) R DR/CR
    4126 Unpaid Write-Off Assessments R CR
    4127 Accrued Interest on Write-Offs R CR
    4128 Accrued Penalty on Write-Offs R CR
    4130 ECC Unpostable - BMF R DR/CR
    4131 Unpaid Memo Assessments R CR
    4132 Accrued Interest on Memo Assessments R CR
    4133 Accrued Penalty on Memo Assessments R CR
    4205 SC Suspense for To/From CADE R DR/CR
    4210 ECC Suspense for MF - IMF/CADE R DR/CR
    4215 CADE ECC Suspense R DR/CR
    4217 CADE MFT 30 to MFT 29 R CR
    4220 SC Suspense for MF - IMF R DR/CR
    4225 EFTPS/FPLP Suspense for MF - IMF (Ogden Only) R DR/CR
    4230 ECC Unpostable Documents - IMF R DR/CR
    4254 MFT 30 to MFT 29 R CR
    4300 Unapplied FTD Transactions - SCCF (Austin, Cincinnati, Kansas City, and Ogden Only) R DR/CR
    4420 SC Suspense for NMF R DR/CR
    4425 EFTPS/FPLP Suspense for NMF (Ogden Only) R DR/CR
    4430 Unpostable Documents - NMF R DR/CR
    4440 Assessment & Abatement Suspense - NMF R DR/CR
    4510 Pre-payment Credits - BMF R CR
    4520 Pre-payment Credits - IMF/CADE R CR
    4521 Pre-payment Credit - Non-Tax R CR
    4522 CADE Pre-payment CR - Non-Tax R CR
    4530 CADE Pre-payment CR R CR
    4610 Unapplied Advance Payments R CR
    4615 IRC Sec. 847 Spec. Tax Payments R CR
    4620 Unidentified Remittances R CR
    4625 Insolvency Suspense R CR
    4626 PFIC Suspense R CR
    4701 Liability for Cover Over - NMI (Ogden Only) R CR
    4702 Liability for Cover Over - VI (Austin and Ogden Only) R CR
    4703 Liability for Cover Over - Guam (Ogden Only) R CR
    4704 Liability for Cover Over - Samoa (Ogden Only) R CR
    4710 Offers-in-Compromise (Cincinnati Only) R CR
    4720 Sales of Seized Property (Ogden Only) R CR
    4730 Miscellaneous Deposit Fund R CR
    4740 Deposit Funds in Transit R CR
    4750 Anti-Drug Special Funds Liability R CR
    4755 Liability For Informant Reward (Ogden Only) R CR
    4765 EFTPS Misc. Suspense (Ogden Only) R DR/CR
    4801 Approved Vouchers Payable, Prin R CR
    4802 Approved Vouchers Payable, Int R CR
    4803 Approved Vouchers Payable, Deposit Fund R CR
    4804 Approved Vouchers Pay, Anti-Drug R CR
    4805 Approved Vouchers Payable, Oil Spill R CR
    4806 Approved Vouchers payable, Misc. Revenue R CR
    4808 Approved Vouchers Payable, Informant Reward R CR
    4810 Liability for Budget Clearing Account - Increases/Decreases R DR/CR
    4811 Approved Vouchers Payable - NMI (Ogden Only) R CR
    4812 Approved Vouchers Payable - VI (Austin and Ogden Only) R CR
    4813 Approved Vouchers Payable - Guam (Ogden Only) R CR
    4814 Approved Vouchers Payable - Samoa (Ogden Only) R CR
    4815 Approved Vouchers Payable - Misc. User Fee R CR
    4816 Approved Vouchers Payable - Photocopy Fee R CR
    4817 Approved Vouchers Payable - Original Installment Agreement User Fee R CR
    4818 Approved Vouchers Payable - Reinstated Installment Agreement User Fee R CR
    4819 Approved Vouchers Payable - OIC User Fee R CR
    4820 Approved Vouchers Payable - Reserved R CR
    4900 Revenue Credit in Transit to Other Service Campuses R CR
    4910 Disbursement, Loss R DR
    4950 IMF Unallowable Deductions R CR
    4960 Unconfirmed FTDs (Austin, Cincinnati, Kansas City, and Ogden Only) R DR/CR
    4970 Unapplied Refund Reversals R DR/CR
    4975 Liability DOJ Receipts (Atlanta Only) R CR
    4980 Liability for Inventory Accounts (Ogden Only) R CR
    4985 IPACR Suspense R CR
    5000 Disbursement Accounts    
    5100 Disbursements, Prin N CR
    5200 Disbursements, Int N CR
    5301 Disbursements, Misc. User Fee N CR
    5302 Disbursements, Photocopy Fee N CR
    5303 Disbursements, Original Installment Agreement N CR
    5304 Disbursements, Reinstated Installment Agreement N CR
    5305 Disbursements, OIC User Fee N CR
    5306 Disbursements, Reserved N CR
    5400 Disbursements, Misc. Revenue N CR
    5401 Disbursements, PFIC (Ogden Only) N CR
    6000 Assessments and Settlements    
    6001 Installment Agreement Liability N CR
    6010 Arbitrage Rebate Liability Revenue (Ogden only) N CR
    6011 Arbitrage Rebate Penalty Liability (Ogden Only) N CR
    6110 Withholding Tax Assessment - Prin N CR
    6111 Withholding Tax Assessment - Pen N CR
    6112 Withholding Tax Assessment - Int N CR
    6120 Individual Income Tax Assessment - Prin N CR
    6121 Individual Income Tax Assessment - Pen N CR
    6122 Individual Income Tax Assessment - Int N CR
    6130 Corporation Tax Assessment - Prin N CR
    6131 Corporation Tax Assessment - Pen N CR
    6132 Corporation Tax Assessment - Int N CR
    6140 Excise Tax Assessment - Prin N CR
    6141 Excise Tax Assessment - Pen N CR
    6142 Excise Tax Assessment - Int N CR
    6150 Estate & Gift Tax Assessment - Prin N CR
    6151 Estate & Gift Tax Assessment - Pen N CR
    6152 Estate & Gift Tax Assessment - Int N CR
    6170 CTA Tax Assessment - Prin N CR
    6171 CTA Tax Assessment - Pen N CR
    6172 CTA Tax Assessment - Int N CR
    6180 FUTA Tax Assessment - Prin N CR
    6181 FUTA Tax Assessment - Pen N CR
    6182 FUTA Tax Assessment - Int N CR
    6190 Previously Assessed Tax N CR
    6191 Previously Assessed - Pen N CR
    6192 Previously Assessed - Int N CR
    6200 Taxpayer Accounts Transferred N DR/CR
    6201 Mirror Assessments N DR/CR
    6310 Miscellaneous Fees N CR
    6320 Offshore Oil Account (Austin Only) N CR
    6330 Debtor Masterfile Offsets N CR
    6400 Miscellaneous Revenue Collection N CR
    6510 Overassessment Credited N DR
    6520 Refund of Tax & Interest - NMF N DR
    6530 Tax Accounts Compromised N DR
    6540 Small Debits and Credits Cleared N DR/CR
    6545 BMF 100% Penalty Credit Allowed N DR/CR
    6550 Withholding Tax Payments Credited N DR
    6560 Other Credits Allowed N DR
    6565 Refund Cancellation Cr Allowed N DR
    6570 Substantiated Credits Allowed N DR
    6575 Overpayment Interest Allowed N DR
    6580 Revenue CR Transferred To/From N DR/CR
    6590 Deposit Fund CR Transferred To/From N DR/CR
    6600 Accounts Cleared, Statute N DR/CR
    6700 Foreign Check Collection Cost & Miscellaneous Bank Charges N DR
    6800 Excess Collection N CR
    6810 Unapplied Statute Expired Credit N DR/CR
    6900 Adjustments or Corrections of Rev N DR
    6910 Adj or Correction of Misc Revenue N DR
    6920 Disbursement Write-Off N DR
    6950 DOJ Civil Debt Collection Holdback (Atlanta Only) N DR
    6970 Small Debit and Credit cleared - FTD N DR/CR
    6975 Liability for Small Debits and Credits Cleared - FTD N DR/CR
    6980 Acquired Property Disposed of Other Than by Sale (Ogden Only) N DR
    6985 Profit and Loss on Sale of Acquired Property (Ogden Only) N DR/CR
    7000 Other Assets    
    7001 Unclassified EFTPS/FPLP (Ogden Only) R DR
    7002 Deposit Fund Receipts/Deposit Fund Disbursements R DR/CR
    7003 Anti-Drug Special Fund Receipts/Anti-Drug Disbursements R DR/CR
    7004 Informant Reward Drug Receipts/Disbursements (Ogden Only) R DR/CR
    7005 Cover Over Receipts/Disbursement - NMI (Ogden only) R DR/CR
    7006 Cover Over Receipts/Disbursements - VI (Austin and Ogden Only) R DR/CR
    7007 Cover Over Receipts/Disbursements - Guam (Ogden Only) R DR/CR
    7008 Cover Over Receipts/Disbursements - Samoa (Ogden Only) R DR/CR
    7009 Insolvency Unclassified R DR
    7100 Property Acquired in Payment of Taxes (Ogden Only) R DR
    7200 Unclassified FTDs -No longer in use R DR
    7210 Confirmed Unclassified Amounts (Austin, Cincinnati, Kansas City, and Ogden Only) R DR
    7220 Unconfirmed Unclassified Amounts (Austin, Cincinnati, Kansas City, and Ogden Only) R DR
    7300 Unconfirmed Debits (Austin, Cincinnati, Kansas City, and Ogden Only) R DR
    7500 Undeposited Collections R DR
    7610 Embezzlement and Thefts R DR
    7620 Unexplained Losses R DR
    7650 Deposit discrepancy R DR
    8000 Work in Process Control Accounts    
    8100 FTD Input (Austin, Cincinnati, Kansas City, and Ogden Only) N DR
    8200 FTD Deposits confirmed (Austin, Cincinnati, Kansas City, and Ogden Only) N CR
    9000 Ledger Closing Accounts    
    9998 Reversal of Revenue Clearance Accountability N DR/CR
    9999 Revenue Clearance Accountability R DR/CR

3.17.63.10  (10-01-2004)
Account Series 1000 Accounts Receivable

  1. This account series is generally taxpayer accounts which contain an outstanding balance of monies due and payable to the U.S. Government. The majority of the accounts receivable are the results of tax assessments against the various tax classes. However, dishonored checks, account transfers, and other receivables are also included in this series.

3.17.63.10.1  (10-01-2004)
Account 1100 BMF, Accounts Receivable (Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent the total taxes assessed and unpaid on the BMF. Included in the total of this account are taxpayer accounts in notice status, installment status, TDA status, and those taxpayer accounts on which collection has been temporarily suspended by a hold code.

  2. External subsidiary records are those taxpayer accounts on MF, in debit-balance status.

  3. Data input will be updated by electronic transmission.

3.17.63.10.2  (10-01-2004)
Account 1200 IMF, Accounts Receivable (Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent the total taxes assessed and unpaid on the IMF and CADE. Included in this account are individual taxpayer accounts in notice status, installment status, TDA status, and those individual taxpayer accounts on which collection has been temporarily suspended by a hold code.

  2. External subsidiary records are those taxpayer accounts on MF, in debit-balance status.

  3. Data input will be updated by electronic transmission.

3.17.63.10.3  (10-01-2004)
Account 1205 CADE, Accounts Receivable (Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent the total taxes assessed and unpaid on the CADE file. Included in this account are individual taxpayer accounts in notice status, installment status, TDA status and those individual taxpayer accounts on which collection has been temporarily suspended by a hold code.

  2. External subsidiary records are those taxpayer accounts on CADE, in debit-balance status.

  3. Data input will be updated by electronic transmission.

3.17.63.10.4  (10-01-2004)
Account 1300 Non-Tax Receivables (Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent non-tax monies posted on MF that have an outstanding module balance.

  2. Data input will be updated by electronic transmission.

3.17.63.10.5  (10-01-2004)
Account 1301 CADE Non-Tax Receivables (Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent non-tax monies posted on CADE that have an outstanding module balance.

  2. Data input will be updated by electronic transmission.

3.17.63.10.6  (10-01-2004)
Account 1321 NMF Notice (Real Account, DR Normal Balance)

  1. This receivable account will record all of those taxpayer accounts that are maintained on ANMF. These include assessments of tax, penalties or other additions to tax, and interest assessed. Payments and other credits to these taxpayer accounts will also be recorded in this account.

3.17.63.10.7  (01-01-2007)
Account 1322 NMF Taxpayer Delinquent Accounts Deferral (Real Account, DR Normal Balance)

  1. If the taxpayer fails to pay the previous notices, the accounts are then maintained in TDA. NMF accounts are the external subsidiary records to Account 1322.

3.17.63.10.8  (01-01-2007)
Account 1324 NMF Taxpayer Delinquent Accounts Deferral Under Tolerance (Real Account, DR Normal Balance)

  1. These TDA accounts meet the deferral criteria of $24,499.99 as established by Collection. Collection activity is held in abeyance until determined otherwise. NMF accounts are the external subsidiary records to Account 1324.

3.17.63.10.9  (10-01-2004)
Account 1360 NMF Installment Agreement Accounts (Real Account, DR Normal Balance)

  1. Taxpayer accounts are maintained in installment agreement status until they have satisfied their tax liability. NMF accounts are the external subsidiary records to Account 1360.

3.17.63.10.10  (10-01-2004)
Account 1371 NMF Offers In Compromise (OIC) (Real Account, DR Normal Balance)

  1. Taxpayer NMF accounts are maintained in OIC when a proposal for settlement of a tax liability is less than previously assessed. NMF accounts are the external subsidiary records to Account 1371.

3.17.63.10.11  (10-01-2004)
Account 1389 NMF Suspense (Real Account, DR Normal Balance)

  1. Taxpayer NMF accounts are maintained in IDRS TDA suspense when an adjustment claim is pending. NMF accounts are the external subsidiary records to Account 1389.

3.17.63.10.12  (10-01-2004)
Account 1400 Tax Accounts Transferred Out (Real Account, DR Normal Balance)

  1. This receivable account will be used to record and control amounts on NMF accounts while in the process of manual transfer to other campuses. NMF account amounts will be posted to this account when Form 514B is prepared. Amounts will be closed from the account upon receipt of the receiving campus' acknowledgement of account transfer on Form 514B, Part 2.

  2. External subsidiary record is the pending file of Forms 514B.

3.17.63.10.13  (01-01-2009)
Account 1401 Accrued Interest on Taxes Receivable (Real Account, DR Normal Balance)

  1. This receivable account will be used for accrued interest on taxes receivable due from taxpayers for which IRS can support the existence of a receivable either through taxpayer agreement or through court rulings in favor of the IRS.

3.17.63.10.14  (01-01-2009)
Account 1402 Accrued Penalty on Taxes Receivable (Real Account, DR Normal Balance)

  1. This receivable account will be used for accrued penalty on taxes receivable due from taxpayers for which IRS can support the existence of a receivable either through taxpayer agreement or through court rulings in favor of the IRS.


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