3.17.63  Redesign Revenue Accounting Control System

Manual Transmittal

April 01, 2014

Purpose

(1) This transmits the revised IRM 3.17.63, Accounting and Data Control, Redesign Revenue Accounting Control System.

Material Changes

(1) We made substantial revisions to this IRM by:

  1. Realigning subsections.

  2. Adding new subsections.

  3. Moving large charts to the exhibits section.

  4. Moving the Federal Tax Deposit section and accompanying Chart of Accounts to the exhibits section.

  5. Making editorial changes.

  6. Changing Financial Management Service (FMS) and Bureau of Public Debt (BPD) to its new name Bureau of the Fiscal Service (Fiscal Service). These two agencies were consolidated on October 7, 2012.

(2) IRM Procedural Update (IPU) 101648 issued 11-23-2010:

  1. IRM 3.17.63.16.2.21 removed instructions.

  2. IRM 3.17.63.16.5.4 removed instructions.

(3) IPU 101740 issued 12-21-2010:

  1. IRM 3.17.63.12.7 added Section 508 Compliance.

  2. IRM 3.17.63.9.9.4 added Lockbox Accounting Package.

  3. IRM 3.17.63.9.9.5 replaced paragraph (2) with new instructions for ISRP batch journal.

(4) IPU 101743 issued 12-22-2010:

  1. IRM 3.17.63.9.2.3 added reviewer instructions.

  2. IRM 3.17.63.9.2.3(6) added - accounting technician maintains the email confirmation when the TID report was sent to HQ.

(5) IPU 110197 issued 01-24-2011 update is now in IRM 3.17.64.

(6) IPU 110312 issued 02-08-2011:

  1. Update is now in IRM 3.17.64.

  2. IRM 3.17.63.9.2.2 added instructions for TID.

(7) IPU 110884 issued 04-28-2011 IRM 3.17.63.21.25 added TAC Cash Deposits (Area Office Remittance Reports).

(8) IPU 110979 issued 05-16-2011:

  1. Exhibit 3.17.63-7 added account number 2915 DOJ Receipts to General Ledger Chart of Accounts.

  2. IRM 3.17.63.16.2.35 deleted (4).

  3. IRM 3.17.63.16.2.35(1) added - except DOJ IPAC.

  4. IRM 3.17.63.16.2.36 added - Account 2915 DOJ Receipts (Normal Account, DR Normal Balance) (TAS 20F3844) (Kansas City Only).

  5. IRM 3.17.63.9.17 changed Atlanta to Kansas City.

  6. IRM 3.17.63.9.17 deleted - DOJ deposit number.

  7. Exhibit 3.17.63-3 added - TAS 20F3844 and description DOJ IPAC Suspense to TAS chart.

(9) IPU 111063 issued 05-27-2011 IRM 3.17.63.9.2.3(8) added - campuses must retain the TID report/spreadsheet & supporting documentation with original signatures and dates for 18 months and retire files after 18 months to the Federal Records Center.

(10) IPU 111071 issued 05-31-2011:

  1. Update is now in IRM 3.17.64.

  2. IRM 3.17.63.16.2.25(1) added - (a) (b) and (c) for Account 2360, Conscience Funds.

  3. IRM 3.17.63.9.28 added - to (4)(c) OTCnet (formerly TGAnet), and to (4)(d) Confirmed date on OTCnet (or CIR) deposit ticket. Created date on an OTCnet (or CIR) debit voucher. Created date on an adjustment DT/DV.

(11) IPU 111121 issued 06-10-2011:

  1. IRM 3.17.63.9.28.1(1) added - The Form 6652 and RACS 017 (DT/DV Support List), are used to reconcile deposits/debit vouchers on the Statement of Differences Reconciliation Report. Form 6652 information is downloaded via CARS and the DT/DV Support List are downloaded via RRACS. The Form 6652 shows the difference between the campus totals and the totals submitted through Fiscal Service. The RACS 017 report reveals all deposits/debit vouchers journalized into the RRACS system (IRS) for the accounting period. The monthly DT/DV Support List identifies the items that support the Fiscal Service total.

  2. IRM 3.17.63.9.28.1(4) added - Maintain a log for audit purpose on 908 and 909 journals.

  3. IRM 3.17.63.9.28.1(9) added fax number.

  4. IRM 3.17.63.14.1(2) updated - All modifications begin with journal number series 902, must be approved by management official.

  5. IRM 3.17.63.12.5(8) added - Maintain a log and include all correction request, modifications and reversal journals for audit trail.

  6. IRM 3.17.63.9.15(7) deleted correction journal and replaced it with modification (902) with manager approval.

(12) IPU 111202 issued 06-23-2011 IRM 3.17.63.9.28.1(12) added - The accounting technician/DBA prepares the RACS 017 DTDV report (IRS) and the GOALS II Support Listing report (Treasury). The reviewer (DBA or higher level personnel) should review the report for accuracy and supporting backup documentation before signing or submitting the SOD to Headquarters office. The Reconciliation Report is verified by comparing it to the 035B and 035C reports prior to submitting to Headquarters.

(13) IPU 111237 updated 06-30-2011:

  1. IRM 3.17.63.10.3 updated the procedures for receiving IPACS.

  2. IRM 3.17.63.16.2.36(2) added - DOJ, 20F3844.

(14) IPU 111306 issued 07-15-2011 IRM 3.17.63.9.2.2(1) added - Effective immediately the RACS Unit will only reconcile imbalances that are $100,000 and greater.

(15) IPU 111325 issued 07-20-2011:

  1. IRM 3.17.63.9.28(2) added - Form 6652; and (3) Statement of Differences Reconciliation Reports for disbursements are due three working days after the 18th of the month.

  2. IRM 3.17.63.9.28(4) added - sources for finding the prepare date and confirm date for the Reconciliation Report “date” columns are listed.

(16) IPU 111971 issued 12-16-2011:

  1. IRM 3.17.63.16.6.6(3) added - Remittances of less than $1 will be deposited into the 6540 account by preparing Form 2007, Schedule of Small Credits Cleared.

  2. IRM 3.17.63.16.6.6(4) Additional IRM reference 3.8.45, Manual deposit Process.

(17) IPU 12U0156 issued 01-17-2012:

  1. Exhibit 3.17.63-1 added DBA, HQ, and SPC to Acronyms table.

  2. IRM 3.17.63.15 (1) (2) (3) added new section RRACS Security Accreditation and Authorization Section.

  3. IRM 3.17.63.5.5 deleted - and CADE from (b) (d) and (e).

  4. IRM 3.17.63.12.9(1) deleted DET.

  5. Exhibit 3.17.63-5 deleted batch window numbers - 106, 160 and 161 and added 162 (CADE 2 Recap).

  6. Exhibit 3.17.63-6 added manual input window number 471 (CADE 2).

  7. IRM 3.17.63.10(1) deleted - CADE and CADE SPS refunds by ECC will be generated daily.

  8. IRM 3.17.63.10.1.1(1) deleted - and CADE.

  9. IRM 3.17.63.18.1(3) (d) replace CADE with IMF, (e) added IMF, and (f) added IMF EFT NTRR (for EFT sites).

  10. IRM 3.17.63.18.1(4) deleted - (c), (e) and (g).

  11. Exhibit 3.17.63-8 Deleted - 106,160 and 161 and added 162 with 107 (162/107).

  12. IRM 3.17.63.18.3(1) changed every cycle to (daily) and deleted (Cade is daily); deleted - and Cade from (1), (a) and (b), and removed (y) and (z).

  13. IRM 3.17.63.20.2(6) (j) removed 106 and added 162 CADE 2 SC recap.

  14. IRM 3.17.63.9.2.3(9) changed 10 sampling items to 3 sampling items per campus and 3 workdays to send the backup documentation.

(18) Deleted the following sections from IRM 3.17.63.5, Responsibilities:

  • Responsibilities of Certifying Officers.

  • Transfer of Accountability of Campus Directors.

(19) Added the following sections to IRM 3.17.63.5, Responsibilities:

  • Chief Financial Officer.

  • Associate Chief Financial Officer for Financial Management.

  • Director, Office of Revenue Accounting (CFO).

  • RRACS Unit Manager (CFO).

(20) IRM 3.17.63.9.10(5)b, Deposit Discrepancies, added account 7649.

(21) IRM 3.17.63.14.4.1(2), Month-End Reports, deleted paragraph on SC Loss/Shortage/Recovery Support List.

(22) IRM 3.17.63.9.20, State Income Tax Levy Program, added Alabama, Arkansas, Colorado, Minnesota, Pennsylvania, and Virginia states.

(23) Deleted Manual Procedures for a Summary of Assessment Certificate (If needed) subsection from IRM 3.17.63.

(24) Deleted the following reports from IRM 3.17.63.21, Accounting Reports and Usage:

  • Summary Record of Assessments & List of Unprocessed Assessment Certificates (RACS Report 006).

  • Form 2162, Summary of Assessment Certificates Issued (RACS Report 025).

  • Erroneous Refund Report- Court Cases (RACS Report 131).

  • Credit Transfer Out Report (RACS Report 142).

(25) IRM 3.17.63.21.25 (2) added Out of Balance heading.

(26) Exhibit 3.17.63-7, General Ledger Chart of Accounts, added accounts 1535, 1545, 6901, 6905, and 7649.

(27) Exhibit 3.17.63-9, Subsidiary Records External to RRACS, added accounts 1535, 1545, 6905, and 7649, deleted CADE RACR section, and renamed IMF/CADE RACR to CADE 2.

(28) Deleted Account Adjustments and all subsections from IRM 3.17.63:

  • Substantiated Credits.

  • Debit and Credit Transfers.

  • NMF Subsequent Transactions Debits.

  • NMF Subsequent Transactions Credits and Abatements.

  • NMF Accounts Written-Off.

(29) Deleted Applications From Unidentified Revenue Receipts and all subsections from IRM 3.17.63:

  • Applications From Unidentified Miscellaneous Funds.

  • Dishonored Check Applications.

  • Non-Master File Applications From DCF.

  • Dishonored Checks on Miscellaneous Deposits.

  • Dishonored Checks on Unidentified Remittances.

(30) Deleted ECC Applications Tapes to ECC (Mainline and IDRS) and all subsections from IRM 3.17.63:

  • Corrected Unpostable Transactions.

  • ECC Deletes.

(31) Deleted Credit Transfers and all subsections from IRM 3.17.63:

  • Credit Transfer Out Form 2158.

  • Credit Transfers In Form 2158.

  • Credit Transfer Out Confirmed Form 2158.

  • Deposit Fund Transfers.

(32) Deleted Account Transfers and all subsections from IRM 3.17.63:

  • Account Transfers Out Form 514-B.

  • Account Transfers In-Form 514-B.

  • Account Transfers Out Confirmed- 514-B.

(33) Deleted Erroneous Refunds and all subsections from IRM 3.17.63:

  • Erroneous Refund Non-Payment.

  • Erroneous Refund Cleared.

(34) Deleted the following accounts from IRM 3.17.63.16, Account Series 1000 Accounts Receivable:

  • Account 1100 BMF, Accounts Receivable (Real Account, DR Normal Balance).

  • Account 1200 IMF, Accounts Receivable (Real Account, DR Normal Balance).

  • Account 1205 CADE, Accounts Receivable (Real Account, DR Normal Balance).

  • Account 1300 Non-Tax Receivables (Real Account, DR Normal Balance).

  • Account 1301 CADE Non-Tax Receivables (Real Account, DR Normal Balance).

  • Account 1321 NMF Notice (Real Account, DR Normal Balance).

  • Account 1322 NMF Taxpayer Delinquent Accounts Deferral (Real Account, DR Normal Balance).

  • Account 1324 NMF Taxpayer Delinquent Accounts Deferral Under Tolerance (Real Account, DR Normal Balance).

  • Account 1360 NMF Installment Agreement Accounts (Real Account, DR Normal Balance).

  • Account 1371 NMF Offers In Compromise (OIC) (Real Account, DR Normal Balance).

  • Account 1389 NMF Suspense (Real Account, DR Normal Balance).

  • Account 1510 Other Receivables, Reg. (Real Account, DR Normal Balance).

  • Account 1530 Court Case Erroneous Refund (Real Account, DR Normal Balance).

  • Account 1540 Non-Court Case Erroneous Refund (Real Account, DR Normal Balance).

  • Account 1550 Injured Spouse Claims Allowed Rec (Real Account, DR Normal Balance).

  • Account 1600 Manual Assessments, Transit Account (Real Account, DR Normal Balance).

  • Account 1710 Dishonored Checks (Real Account, DR Normal Balance).

  • Account 1720 Dishonored Check Adjustments (Real Account, DR/CR Normal Balance).

  • Account 1810 BMF Account Receivable, Inactive (Real Account, DR Normal Balance).

  • Account 1815 CADE Accounts Receivable, Inactive (Real Account, DR Normal Balance).

  • Account 1820 IMF Accounts Receivable, Inactive (Real Account, DR Normal Balance).

  • Account 1830 NMF Accounts Receivable, Inactive (Real Account, DR Normal Balance).

  • Account 1840 Other Receivable, Inactive (Real Account, DR Normal Balance).

(35) Deleted the following accounts from IRM 3.17.63.16, Account Series 4000 Liability Accounts:

  • Account 4110 ECC Suspense for the MFBMF (Real Account, DR/CR Normal Balance).

  • Account 4120 SC Suspense for the MFBMF (Real Account, DR/CR Normal Balance).

  • Account 4125 EFTPS/FPLP Suspense for MF BMF (Real Account, DR/CR Normal Balance) (Ogden Only).

  • Account 4130 ECC Unpostable Documents BMF (Real Account, DR/CR Normal Balance).

  • Account 4205 CADE in Transit/CADE to MF - IMF (Real Account, DR/CR Normal Balance).

  • Account 4210 ECC Suspense for the MFIMF (Real Account, DR/CR Normal Balance).

  • Account 4215 ECC Suspense for CADE (Real Account, DR/CR Normal Balance).

  • Account 4217 ECC MFT 30 to MFT 29 for CADE (Real Account, CR Normal Balance).

  • Account 4220 SC Suspense for the MF IMF (Real Account, DR/CR Normal Balance).

  • Account 4225 EFTPS/FPLP Suspense for MF IMF (Real Account, DR/CR Normal Balance) (Ogden Only).

  • Account 4230 ECC Unpostable Documents IMF (Real Account, DR/CR Normal Balance).

  • Account 4254 MFT 30 to MFT 29 (Real Account, CR Normal Balance).

  • Account 4420 SC Suspense for NMF (Real Account, DR/CR Normal Balance).

  • Account 4425 EFTPS/FPLP Suspense for NMF (Real Account, DR/CR Normal Balance) (Ogden Only).

  • Account 4430 Unpostable Documents NMF (Real Account, DR/CR Normal Balance).

  • Account 4440 Assessment and Abatement Suspense NMF (Real Account, DR/CR Normal Balance).

  • Account 4510 Pre-payment Credits BMF (Real Account, CR Normal Balance).

  • Account 4520 Pre-payment Credits IMF (Real Account, CR Normal Balance).

  • Account 4520 Pre-payment Credits IMF (Real Account, CR Normal Balance).

  • Account 4521 Pre-payment Credit - Non Tax (Real Account, CR Normal Balance).

  • Account 4522 CADE Pre-payment CR Non-Tax (Real Account, CR Normal Balance).

  • Account 4530 CADE Pre-payment CR (Real Account, CR Normal Balance).

  • Account 4610 Unapplied Advance Payments (Real Account, CR Normal Balance).

  • Account 4615 IRC 847, Special Estimated Tax Payments (Real Account, CR Normal Balance) (Ogden Only).

  • Account 4620 Unidentified Remittances (Real Account, CR Normal Balance).

  • Account 4740 Deposit Funds in Transit (Real Account, CR Normal Balance).

  • Account 4900 Revenue Credits in Transit to Other Campuses (Real Account, CR Normal Balance).

  • Account 4910, Disbursement Loss (Real Account, DR Normal Balance).

  • Account 4950 IMF Unallowable Deductions (Real Account, DR/CR Normal Balance).

  • Account 4970 Unapplied Refund Reversal (Real Account, DR/CR Normal Balance).

  • Account 4975 Liability, DOJ Receipts (Real Account, CR Normal Balance) (Atlanta Only).

(36) Deleted the following accounts from IRM 3.17.63.16, Account Series 6000 Assessments and Settlements:

  • Account 6001 Installment Agreement Liability (Nominal Account, CR Normal Balance).

  • Account 6010 Arbitrage Rebate Liability (Nominal Account, CR Normal Balance) (Ogden Only).

  • Account 6011 Arbitrage Rebate Penalty Liability (Nominal Account, CR Normal Balance) (Ogden Only).

  • Account 6110 Withholding Tax Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6111 Withholding Tax Assessments Penalty (Nominal Account, CR Normal Balance).

  • Account 6112 Withholding Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6120 Individual Income Tax Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6121 Individual Income Tax Assessments Penalty (Nominal Account, CR Normal Balance).

  • Account 6122 Individual Income Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6130 Corporation Tax Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6131 Corporation Tax Assessments Penalty (Nominal Account, CR Normal Balance).

  • Account 6132 Corporation Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6140 Excise Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6141 Excise Tax Assessments Penalty (Nominal Account, CR Normal Balance).

  • Account 6142 Excise Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6150 Estate & Gift Tax Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6151 Estate & Gift Tax Assessments Penalty (Nominal Account, CR Normal Balance).

  • Account 6152 Estate & Gift Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6170 CTA Tax Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6171 CTA Tax Assessments Penalty Nominal Account, CR Normal Balance).

  • Account 6172 CTA Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6180 Futa Tax Assessments Principal (Nominal Account, CR Normal Balance).

  • Account 6181 Futa Tax Assessments Penalty (Nominal Account, CR Normal Balance).

  • Account 6182 Futa Tax Assessments Interest (Nominal Account, CR Normal Balance).

  • Account 6190 Previously Assessed Tax (Nominal Account, CR Normal Balance).

  • Account 6191 Previously Assessed Penalty (Nominal Account, CR Normal Balance).

  • Account 6192 Previously Assessed Interest (Nominal Account, CR Normal Balance).

  • Account 6200 Taxpayer Accounts Transferred (Nominal Account, DR/CR Normal Balance).

  • Account 6201 Mirror Assessments (Nominal Account, DR/CR Normal Balance).

  • Account 6510 Over assessments Credited (Nominal Account, DR Normal Balance).

  • Account 6520 Refund of Tax and Interest NMF (Nominal Account, DR Normal Balance).

  • Account 6565 Refund Cancellation Credits Allowed (Nominal Account, DR Normal Balance).

  • Account 6570 Substantiated Credits Allowed (Nominal Account, DR Normal Balance).

  • Account 6580 Revenue Credits Transferred To and From (Nominal Account, DR/CR Normal Balance).

  • Account 6590 Deposit Fund Credit Transferred To and From (Nominal Account, DR/CR Normal Balance).

  • Account 6600 Accounts Cleared Statute/Bankruptcy (Nominal Account, DR/CR Normal Balance).

  • Account 6700 Foreign Check Collection Cost and Miscellaneous Bank Charges (Nominal Account, DR Normal Balance).

  • Account 6800 Excess Collections (Nominal Account, CR Normal Balance).

  • Account 6910 Correction of Miscellaneous Revenue (Nominal Account, DR Normal Balance).

  • Account 6920, Disbursement Write-Off (Nominal Account, DR Normal Balance).

  • Account 6950, DOJ Civil Debt Collection Hold back (Nominal Account, DR Normal Balance) (Atlanta Only).

(37) Deleted the following accounts from IRM 3.17.63.16, Account Series 7000 Other Assets:

  • Account 7001 Unclassified EFTPS/FPLP (Nominal Account, DR Normal Balance) (TAS 20F3820) (Ogden Only).

  • Account 7500 Undeposited Collections (Real Account, DR Normal Balance) (TAS 200110).

  • Loss and Shortages.

  • Account 7610 Embezzlement and Thefts (Real Account, DR Normal Balance).

  • Account 7620 Unexplained Losses (Real Account, DR Normal Balance).

  • Account 7650 Deposit Discrepancies (Real Account, DR Normal Balance).

(38) Deleted the Account Series 9000 Ledger Closing and the following accounts from IRM 3.17.63.16:

  • Account 9998 Reversals Revenue Clearance Accountability (Nominal Account, DR/CR Normal Balance).

  • Account 9999 Revenue Clearance Accountability (Real Account, DR/CR Normal Balance).

(39) Deleted Assessments and all subsections from IRM 3.17.63:

  • After-Hours Assessments.

  • Manual Assessments.

  • NMF Abatements and Credits.

  • Voucher and Schedule of Overpayment and Overassessments.

  • Reversal of Erroneous Abatement.

(40) Deleted Remittances and the following subsections from IRM 3.17.63:

  • Advance Payments and Cash Bonds.

  • Disposition of Requests for Claims from State Treasury Departments (Unclaimed Funds).

  • Unidentified Deposit.

  • Relief for Embezzlements, Thefts and Negligence.

(41) Deleted Debit Vouchers/Debit Voucher Adjustments subsection from IRM 3.17.63.

(42) Deleted Transfers of NMF Abatement Credits To MF subsection from IRM 3.17.63.

(43) Deleted Subsidiary Records and Balancing and the following subsection from IRM 3.17.63:

  • Form 3997 Reconciliation of General Ledger Accounts.

(44) Deleted Accounting Branch Procedures and Responsibilities subsection from IRM 3.17.63.

(45) Deleted Automated Non-Master File (ANMF) (Cincinnati Only) and the following subsections from IRM 3.17.63:

  • NMF Block Control.

  • Daily Assessments.

  • NMF Weekly Assessments.

(46) Deleted Dishonored Checks on Installment Offers subsection from IRM 3.17.63.

Effect on Other Documents

This supersedes IRM 3.17.63 dated July 27, 2010.

Audience

Submission Processing, Wage & Investment

Effective Date

(04-01-2014)

Robin L. Canady
Chief Financial Officer

3.17.63.1  (03-31-2014)
Overview

  1. This Internal Revenue Manual (IRM) provides policies and procedures for the Redesign Revenue Accounting Control System (RRACS).

  2. The Chief Financial Officer, Financial Management, Office of Revenue Accounting develops and maintains this IRM.

3.17.63.3  (03-31-2014)
Definitions

  1. In this IRM, the terms below have the following meanings:

    1. Journal Control - Identifying information relating to transaction activity.

      Note:

      For RRACS, transaction activity includes journals, reversals or confirmations. The Journal Number includes activity count, posting number and system date.

    2. Journal Entry - A money amount and associated information which pertains to a specific ledger posting to the IRS Account.

    3. State Income Tax Levy Program (SITLP) - A compliance program that levies state income tax refunds to satisfy federal tax liabilities.

    4. Wire Transfer - A method of transferring money from one financial institution to another, and replaces checks and other traditional methods of moving money.

3.17.63.4  (03-31-2014)
Acronyms and Forms

  1. A list of acronyms is in Exhibit 3.17.63-1.

  2. A list of forms is in Exhibit 3.17.63-2.

3.17.63.5  (03-31-2014)
Responsibilities

  1. This section provides responsibilities for:

    1. Chief Financial Officer.

    2. Associate Chief Financial Officer for Financial Management.

    3. Director, Office of Revenue Accounting (CFO).

    4. Enterprise Computing Center, Martinsburg (ECC-MTB).

    5. Submission Processing Campuses.

    6. Chief, Revenue Systems & Analysis Section (CFO).

    7. Database Administrators.

3.17.63.5.1  (03-31-2014)
Chief Financial Officer

  1. The Chief Financial Officer is responsible for establishing financial policy for the management and reporting of the custodial assets.

3.17.63.5.2  (03-31-2014)
Associate Chief Financial Officer for Financial Management

  1. The Associate Chief Financial Officer for Financial Management is responsible for establishing, maintaining, and ensuring compliance with custodial revenue policy and procedures for internal accounting operations and financial reporting.

3.17.63.5.3  (03-31-2014)
Director, Office of Revenue Accounting (CFO)

  1. The Director, Office of Revenue Accounting (CFO) is responsible for developing and issuing custodial revenue policy for internal accounting operations and financial reporting.

3.17.63.5.4  (03-31-2014)
Enterprise Computing Center, Martinsburg (ECC-MTB)

  1. The Enterprise Computing Center, Martinsburg (ECC-MTB) is responsible for:

    1. Maintaining Master File (MF) and Customer Account Data Engine (CADE) records for taxpayers.

    2. Processing accounting and data control for Individual Master File (IMF), Business Master File (BMF), and CADE records.

    3. Generating accounting adjustments, transactions and abstracts of revenue receipts.

    4. Maintaining a Reciprocal Accounting Control Record (RACR) with each campus.

    5. Preparing separate SF 1166 or Secure Payment System (SPS) prints for the total amounts of overpayment principal and interest transcribed to BMF and IMF refund files.

    6. Establishing a designated officer to certify each voucher for the account of the applicable Campus Director. See IRM 3.17.79, Accounting Refund Transactions.

3.17.63.5.5  (03-31-2014)
Submission Processing Campuses

  1. Each Submission Processing Campus is responsible for functioning as a separate accounting operation, using an identifiable numeral. The Director is accountable for revenue receipts and repayments deposited to his credit for application to BMF, IMF, and NMF accounts. Each campus is responsible for:

    1. Maintaining a general ledger and such subsidiary records as are required. Reconciles the general ledger accounts and subsidiary records or files each month.

    2. Controlling all accounting documents within the campus for entry to the BMF, IMF, NMF accounts, and for journalizing and posting to the general ledger.

    3. Receiving or initiates control, and processes all BMF, IMF, and Non-Master File (NMF) accounting transactions involving other campuses.

    4. Receiving and controlling BMF, IMF, NMF accounting outputs, and accomplishes required journalization and general ledger postings.

    5. As necessary, initiating or processes account transfers, account adjustments, debit or credit transfers, statutory clearances, etc., related to BMF, IMF, NMF accounts.

    6. Preparing a Form 23-C (RACS Report 006); Form 2188 (RACS Report 024); schedules for manual refunds; transcripts; and accounting reports and other accounting documents, as required.

3.17.63.5.6  (03-31-2014)
Chief, Revenue Systems & Analysis Section (CFO)

  1. The Chief, Revenue Systems & Analysis Section (CFO) is responsible for:

    1. Conducting weekly reviews of the RRACS Authorized Access List/Violations Report to validate system access for authorized individuals.

    2. Reviewing, initialing, and dating the Collections Information Repository (CIR) reports weekly, to ensure timely resolution of discrepancies.

    3. Signing the National Headquarters (NHQ) End of Month checklist.

    4. Authorizing modifications, reversals, and deletions to the DBA menu. The authorization must be documented and retained by the manager.

    5. Ensuring internal controls are effective and efficient in safeguarding against waste, fraud and abuse.

    6. Performing program or “spot” reviews for accuracy and completeness.

3.17.63.5.7  (03-31-2014)
Database Administrators (DBAs)

  1. Each campus appoints an employee to serve as the DBA, and an alternate DBA. The DBA and only two (2) alternate DBAs may have access to the RRACS DBA main menu.

  2. The Database Administrator and the Alternate Database Administrator(s) for each campus are responsible for:

    1. Accepting responsibility for a password to the DBA menu.

    2. Exercising extreme caution when changing database information.

    3. Correcting records containing identification and status errors.

    4. Ensuring the balance and the integrity of the database are maintained at all times.

    5. Ensuring the default account period is properly set.

    6. Ensuring all daily and weekly tapes are processed on time and prior to initiating month-end closing procedures.

    7. Classifying an extensive variety of campus accounting transactions by analyzing batched or individual documents, and verifying the accuracy and completeness of accounting data.

    8. Maintaining accounts by analyzing error messages displayed on the terminal and initiating the necessary corrective action, reviewing and analyzing the daily posting register to ensure that all IRS double-entry accrual accounting transactions have been properly posted, and initiating corrective actions, when necessary.

    9. Analyzing accounts by reviewing and balancing the RRACS computer-generated accounting reports to ensure reports cross balance, and all general ledger and subsidiary files agree with reported information.

    10. Participating in reconciling general ledger accounts with external subsidiary records in other working units within the branch, balancing principal and interest with appropriate general ledger accounts, and reconciling both accounts with the appropriate accounting reports.

    11. Maintaining various logs for electronic data processing and database corrections.

    12. Monitoring all RRACS electronic data input and output and making all necessary reversals.

    13. Establishing checklists for EOD, EOM, and a new month.

    14. Reviewing the specific database lists for invalid entries, minus records, and initiating corrective action when necessary. The database lists are: field office records; loss and recovery records; individual detail records; confirmed DT/DVs; and unconfirmed DT/DVs.

    15. Reviewing all reports and ensuring DT/DV list equals Section III of SF 224, the Form 2162 audit trail includes all manual assessments, and the NTRR balances to general ledger accounts 5100, 5200, and 2400.

    16. Ensuring all accounts are in correct status in preparation for EOM processing, and monitoring accounts to be maintained in zero balance.

    17. Reviewing unpulled assessments daily.

    Note:

    The DBA should have a thorough knowledge of double-entry accounting principles and theory used in the IRS accounting control systems. Alternate DBAs must be thoroughly proficient with the contents of IRM 3.17.63. There is no certification for the alternate DBA. ONLY the DBA and/or alternate DBA have access to the RRACS database main menu.

3.17.63.6  (03-31-2014)
Federal Government Accounting Requirements

  1. 31 USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency, and states that the head of each executive agency shall establish and maintain systems of accounting and internal control that provide:

    1. Full disclosure of the financial results of the agency's activities.

    2. Adequate financial information needed for the agency's management purposes.

    3. Effective control over, and accountability for, all funds, property, and other assets for which the agency is responsible, including appropriate internal audit.

    4. Reliable accounting results to serve as the basis for preparation and support of budget requests, controlling the execution of its budget, and providing financial information required by the President or other designated authority.

    5. Suitable integration of the agency's accounting with the accounting of Treasury in connection with the central accounting and reporting responsibilities imposed by the Secretary of the Treasury.

  2. These systems must conform to the accounting principles, standards, and related requirements, as prescribed by the Comptroller General of the U.S. Historically, these have been reflected in the "Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies."

  3. The accounting system of an executive agency or any of its component parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize, and simplify accounting systems in the federal government are exercised under a Joint Program sponsored by the Comptroller General, the Secretary of the Treasury, and the Director of OMB. This program contemplates the full development of sound accounting within each executive agency as a working arm of management, and in terms of financial information and control. It envisions an integrated pattern of accounting and financial reporting for the government as a whole, that will be responsive to executive and legislative needs.

  4. The established accounting and reporting principles, standards, and basic procedures will take into consideration the various areas of responsibility involved, the elimination of overlapping operations and paper work, and the broader application of efficient methods and techniques in accounting operations throughout the government. Integration of revenue accounting data with central accounts maintained by Fiscal Service is accomplished primarily by the submission of monthly reports of deposit and classified collections, and of disbursements from the refund appropriations.

3.17.63.6.1  (03-31-2014)
On-Site Audit by Government Accountability Office

  1. The Government Accountability Office (GAO) audits the campus tax transactions at the location where the operations are conducted and where the accounting records are maintained.

  2. RFC confirmation listing, SF 224, and the related source documents (for example: the original refund disbursement and check cancellation schedules) remains in the Accounting section in accordance with 44 USC 3309.

  3. The SF 224 and the related source documents are maintained in the following accounting period order:

    1. Original SF 1166 OCR.

    2. Original SF 1098, SF 1184, SF 1081, or Form 3818.

    3. SF 224 corrections must have an adjustment document or memorandum attached.

  4. When requested by GAO, the accounting section is responsible for producing the following records:

    1. BMF, IMF, and CADE and CADE 2 recaps of Assessments, Abatements and Other Post-Journalized Transactions.

    2. Form 8485, Restricted Interest cases that are sanitized.

    3. Form 2285, Restricted Interest cases that are sanitized.

  5. GAO auditors may request transcripts for specific individual cases to verify the accuracy of the refund interest computation. IRS must redact individual case information.

  6. The accounting section is required to maintain refund transaction records not audited in the campus file or the Federal Records Center for GAO audit purposes. Refund transaction records that GAO audited may be transmitted to the Federal Records Center or retired in accordance with IRM 1.15.29, Records Control Schedule for Submissions Processing Campus Records.

3.17.63.7  (03-31-2014)
Agency Location Codes

  1. The Department of the Treasury assigned Agency Location Codes (ALC) to each campus for deposit and disbursement activities:

    CAMPUS Agency Location Code
    Andover 20090800
    Atlanta 20090700
    Austin 20091800
    Brookhaven 20091900
    Cincinnati 20091700
    Fresno 20098900
    Kansas City 20090900
    Memphis 20094900
    Ogden 20092900
    Philadelphia 20092800

3.17.63.8  (03-31-2014)
Treasury Account Symbols (TAS)

  1. The Treasury Account Symbols (TAS) represent individual appropriations, receipts, and other fund accounts by agency and bureau. Agencies post appropriations or spending authorizations granted by Congress to these accounts. When money is collected under the accountability of the Campus Director, it must be entered into one of the RRACS receipt accounts. The receipt account records the money sent to Treasury for the current fiscal year. These accounts accumulate data by the TAS and represent the receipts of agency and bureau, individual appropriations and fund accounts.

  2. The accumulated data is recorded on SF 224. This form reports a detailed account classification of collections, refund disbursements and refund check cancellations and transactions processed for the various Campuses. SF 224 is the basis for accounting control and reporting to Treasury, and GAO's audit.

  3. See Exhibit 3.17.63-3 for the list of TAS.

3.17.63.9  (03-31-2014)
Deposit Discrepancies

  1. This section provides the procedures for tracking, processing, depositing, packaging, reporting, reconciling, and handling of all deposit discrepancies for individual payments reported on the deposit tickets.

  2. Examples of individual payments types are:

    1. Revenue - Collection of taxes; penalties; interest; and payments on accepted Offers In Compromise (OIC). Other revenue receipts include payment of court fines; court costs; forfeitures; penalties incident to, or imposed for violation of applicable laws from the redemption of property acquired by the Government; and consummated sales of acquired property.

    2. Deposit Fund - Collections from OICs; payments for the sale of seized property; and offers to bid or initial payments under a deferred payment sale of acquired property. Other payments may also be deposited in this account in accordance with specific instructions.

    3. General Fund - Collections of fees for duplication of documents; conscience fund; user fees; and for reducing the public debt.

    4. Repayments to Refund Appropriations - Collections recovered from erroneous, duplicate, or overpaid refund disbursements; or recoveries of fraudulently endorsed refund checks.

3.17.63.9.1  (03-31-2014)
Federal Tax Deposit (FTD) - Retired as of January 1, 2011

  1. The Federal Tax Deposit (FTD) program was retired as of January 1, 2011.

  2. All FTD program information is now in Exhibit 3.17.63-4.

3.17.63.9.2  (03-31-2014)
Trace Identification (TID) Number

  1. The Trace Identification Number (TID) number is a tracking mechanism that identifies each Deposit Ticket (DT) and Debit Voucher (DV) with its corresponding payments and debit. The Integrated Submission and Remittance Processing (ISRP), lockbox, and Electronic Federal Tax Payment System (EFTPS) input payment systems automatically assign a TID to each DT/DV.

  2. Manual deposits must have a Form 813 and a TID assigned from the Batch Block Tracking System (BBTS).

  3. The TID Reconciliation Report reconciles the Custodial Detail Data Base (CCDB) against the RRACS General Ledger accounts.

3.17.63.9.2.1  (03-31-2014)
Trace Identification (TID) Number Format

  1. It is mandatory that every DT/DV have a unique TID. The 14 character TID number represents one DT/DV. The 20 character TID number includes an additional six (6) transaction sequence number that uniquely identifies each DT/DV transaction.

  2. RRACS assigns System ID 20 and 25. Input payment systems assign the remaining System IDs. The valid system IDs for the functions are:

    System ID/Function
    System ID Function
    01 EFTPS
    02 ISRP Payment Transactions
    05 Lockbox Bank Transactions
    10 SITLP Levy Payments
    12 Receipt and Control Manual Deposits for External Leads
    15 Receipt & Control Manual Deposits
    20 RRACS Dishonored Check File (DCF) DV
    25 Accounting DT/DV
    35 Integrated Data Retrieval System (IDRS) Installment Agreement User Fee Sweep
    40 Automated Insolvency System (AIS)
    45 Automated Offer-in-Compromise (AOIC)
    50 Individual Taxpayer Identification Number (ITIN)
    55 Field Assistance - Taxpayer Assistance Centers (TAC)

  3. The Trace ID number format is:

    Trace ID Number Format
    Field Format Definition
    Site ID nn Campus Filing Location Code, Bank ID, or other Site ID
    System ID nn See System ID/Function chart
    Deposit Date YYYYDDD Julian Date
    Sequence Number nnn For each deposit date, begin with 001 and increment each additional deposit by one.
    Transaction Sequence Number nnnnnn This field is relevant only for the Payment Transaction Record. For each payment summarized in a deposit ticket, beginning with 000001, sequentially increment the Transaction Sequence Number for each transaction.

  4. Valid Site IDs for the Campus locations are:

    Site ID/Campus Locations
    Site ID Campus Locations
    07 Atlanta Submission Processing Campus (ATSPC)
    08 Andover Submission Processing Campus (ANSPC)
    09 Kansas City Submission Processing Campus (KCSPC)
    17 Cincinnati Submission Processing Center (CSPC)
    18 Austin Submission Processing Campus (AUSPC)
    19 Brookhaven Service Center (BSC)
    28 Philadelphia Service Center (PSC)
    29 Ogden Submission Processing Center (OSPC)
    49 Memphis Service Center (MSC)
    89 Fresno Submission Processing Center (FSPC)

  5. Valid Site IDs for the Lockbox Bank locations are:

    Site ID/Lockbox Bank Locations
    Site ID Lockbox Bank Locations
    33 US Bank - Cincinnati (FSPC)
    35 US Bank - Cincinnati (CSPC)
    36 JP Morgan Chase - Louisville (KCSPC)
    40 JP Morgan Chase - Louisville- KSCPC
    47 Bank of America Windsor - KCSPC
    68 Bank of America - Union City (FSPC)
    73 JP Morgan Chase - Charlotte (AUSPC)
    91 Bank of America - Windsor (OSPC)
  6. BBTS provides a subset of System IDs for requesting a Trace ID number for manual DTs. The subset list is:

    BBTS Subset ID/Function
    Subset ID Function
    12 Receipt and Control Manual Deposits for External Leads
    15 Receipt & Control Manual Deposits
    20 RRACS DCF DV
    25 Accounting DT/ DV
    40 Automated Insolvency System (AIS)
    45 Automated Offer-in-Compromise (AOIC)
    50 ITIN
    55 Field Assistance - Taxpayer Assistance Centers (TAC)

3.17.63.9.2.2  (03-31-2014)
Trace Identification (TID) Reconciliation Procedures

  1. Monthly, the Campus RRACS Unit reconciles the Campus DT/DV Reconciliation Report (J55C01) from imbalances that are $100,000 and greater. The completed report alerts the campus and HQ personnel of the reasons for the imbalances.

  2. The report format must not be altered. All TIDs must remain on this report.

  3. The Campus DT/DV Reconciliation Report (J55C01) lists all TIDs received on the RRACS DT/DV file for an accounting period. This report is sorted by the preparation date month and the absolute value of the RRACS amount. The report columns are:

    1. Column A (Month) - is for entering the month the original transaction took place.

    2. Column B (Treasury Number) - indicates the Treasury number.

    3. Column C (RRACS TID) - is for entering the 14 digit TID that was entered into RRACS.

    4. Column D (RRACS Date Presented) - is for entering the date the journal entry was entered into RRACS.

    5. Column E (IR CNT) - is for entering the number of times the TID was entered into RRACS for a journal entry.

      Note:

      An asterisk or a numerical value greater than one is an indication that a duplicate TID was entered.

    6. Column F (DT/DV Amount) - use for entering the amount of the deposit ticket or debit voucher in RRACS.

    7. Column G (CDDB Pre-posted) - is for entering the amount of the deposit ticket or debit voucher that was captured in CDDB.

    8. Column H (Pre-posted Difference) - is for entering the difference in dollar amount between Column F and Column G.

    9. Column I (Error Type) - is for entering the TID Error Type as identified in the TID Error Codes chart in IRM 3.17.63.9.2.3, Campus Reconciliation Procedures.

    10. Column J - indicates field in which the RRACS Manager/Reports analyst will indicate yes or no if the unit that caused the TID mismatch was contacted. All UNITS MUST BE CONTACTED by the 20th workday.

    11. Column K (Comments) - use for entering the location of comments regarding research efforts and resolution in identifying the cause of the TID mismatch. Comments must match each TID mismatch.

3.17.63.9.2.3  (03-31-2014)
Campus Reconciliation Procedures

  1. No later than the 13th workday of each month, the HQ CFO emails the Campus DT/DV Reconciliation Report (J55C01) to each individual Campus DBA and to the CFO mailbox (*CFO RFM IRACS). The following individuals must be copied on the email:

    1. Accounting Operations Manager.

    2. Department Manager.

    3. RACS Manager.

    4. Reports Analyst.

    5. Planning & Analysis Analyst.

  2. The accounting technician is responsible for:

    1. Retrieving the accounting package and supporting documentation to identify the TID error.

    2. Entering the TID error code in Column I and a detailed explanation in Column K using the table below:

    Trace ID Error Codes
    ERROR TYPE DESCRIPTION ACCEPTABLE COMMENTS
    A Typo error in TID input. ”Input As” or ”S/B” xx-xx-xxxx-xxx-xxx, Area
    B Two days of deposit activity was entered into RRACS under one journal. Explain why
    C Trace ID is in RRACS twice, typo error on one of the deposit tickets/debit vouchers. No Comment Necessary
    D Transaction was added/deleted after deposit was submitted at end of day. Added/Deleted, Why
    H Foreign check issues with banks (cash conversion issues) Explain why
    I Suspense transactions (for example, DCF, URF) No Comment Necessary
    J Transactions that did not post to CDDB (for example, NMF, DOJ Restitution, EP/EO, OIC, Photocopy Fees) Explain why
    L Other error not classified above, including External Leads for Cincinnati and Fresno Accounting Only Explain why

    Note:

    Cincinnati and Fresno Only - External Leads explanation should read: "External Lead Process - Questionable returned refund from bank being sent back to IRS by the financial institution currently being researched by the Integrity and Verification Operation (IVO) - External Leads formerly Accounts Management Taxpayer Assurance Program (AMTAP) group."

    M Void, Cancelled, or D-Applied checks Date xx-xx-xxxx / For Washed, what DT/DV #
    N Closed Cases (for example, DCF, URF) URF/DCF, Date xx-xx-xxxx
    P Duplicate payment created by the TAC office Explain why
    Z Unresolved mismatch still researching (this error code will result in a non-green score) Explain why

  3. The RACS Manager/Reports Analyst contacts the unit that caused the TID mismatch, and verifies the actions taken to prevent the mismatch from reoccurring. Indicate in Column J; Yes or No.

  4. The following table describes the responsibilities for the accounting technician, the Reviewer, and the Certifying Officer (usually the Accounting Operations Managers):

    Reviewer Instructions
    Accounting Technician
    • Reviews all details listed on the reconciliation report.

    • Ensures the supporting backup documentation agrees to the explanation.

    • Ensures error codes are accurate.

    • Ensures detail explanation support findings.

    • Checks the report for completeness.

    • Signs the report.

    Reviewer
    • Ensures all out of balance conditions have the correct error codes.

    • Reviews the backup documentation.

    • Verifies the detail explanations exist.

    • Verifies the preparer signed the report.

    • Signs the report.

    Certifying Officer -
    usually the Accounting Operations Manager
    • Ensures the reconciliation report is submitted timely to the HQ office.

    • Reviews the report.

    • Verifies the preparer has included formal documentation.

    • Verifies the reviewer has signed the report.

    • Signs the report.

  5. The source documentation and DT/DV Reconciliation Report (J55CO1) remain in the campus.

  6. The accounting technician is responsible for:

    1. Emailing the completed spreadsheet to the HQ OS:CFO:FM:A:S analyst. The email confirms the date and time of receipt and is maintained by the HQ OS:CFO:FM:A:S analyst.

    2. Faxing or emailing the EFTPS Lockbox and ISRP supporting documentation to the HQ CFO by the 20th workday of each month.

  7. The HQ CFO contacts the Accounting Operations Manager immediately if he does not receive the completed spreadsheet and supporting documentation.

  8. Campuses must retain the TID report/spreadsheet and supporting documentation with the original signatures and dates for 18 months. After 18 months, the campus forwards the files to the Federal Records Center.

  9. The HQ analyst must select three random samples and request the source documentation, per agreement with GAO. Within three (3) workdays, the campus must forward the supporting documentation to the HQ CFO analyst. Fax the supporting documentation or send it by overnight express, if the documentation is too large to fax or email. Mail to:
    Internal Revenue Service
    1111 Constitution Avenue, NW
    OS:CFO:FM:R:A
    Washington, DC 20224

3.17.63.9.3  (03-31-2014)
Batch Block Tracking System (BBTS) - Online 5081

  1. Manual deposits requiring Form 813 are assigned TID numbers using the Batch Block Tracking System (BBTS). BBTS produces 14 and a 20 character TID number for manual deposits. The 14 character TID number is either stamped or handwritten on the deposit ticket and the 20 character TID must be stamped on the individual payment.

  2. The BBTS assigns the DLN and TID number to payments and generates Form 813. An online 5081 must be submitted to request access to BBTS. Managers and employees input their own 5081s. Management designates access to the functions and screens for BBTS users.

  3. Each campus BBTS coordinators is responsible for approving the online 5081s. BBTS may designate approval to the managers and/or functional coordinators for online 5081s.

  4. For the online 5081, the BBTS Coordinator must specify the following:

    1. System ID - Function.

    2. 15 - Receipts and Control Manual Deposits.

    3. 20 - RRACS DCF Debit Voucher.

    4. 25 - Accounting Deposit Ticket and DV.

    5. 40 - Automated Insolvency Manual DT.

    6. 45 - Automated Offer-in-Compromise.

    7. 50 - ITINS.

  5. RRACS must use BBTS to assign the TID number to a deposit ticket (System ID 25).

3.17.63.9.4  (03-31-2014)
Custodial Detail Data Base (CDDB)

  1. The Financial Management Information System includes the Custodial Detail Data Base (CDDB) which tracks all individual payments reported on the deposit ticket. The individual payments are balanced against the deposit ticket totals. The accounting technician posts the deposit ticket in the RRACS general ledger account.

  2. Campuses receiving debit vouchers directly in the RRACS unit must assign a TID number through BBTS. The RRACS unit forwards the debit voucher to DCF. The DCF unit enters the debit voucher in the DCF database.

  3. The SITLP program, Taxpayer Delinquent Account (TDA) 55, generates the TID number. The SITLP report reflects the TID number. The accounting section must stamp or write the TID on the deposit ticket.

  4. Manual deposits requiring Form 813 are assigned TID numbers using BBTS. The BBTS must be a 14 and a 20 character TID number for manual deposits. The 14 character TID number is either stamped or handwritten on the deposit ticket and the 20 character TID must be stamped on the individual payment.

3.17.63.9.5  (03-31-2014)
Processing National Security Checks (Kansas City Only)

  1. Checks received from National Security are sealed in an envelope and hand delivered from National Security to the Compliance Services Director with a memorandum and list of checks enclosed in the sealed envelope.

  2. The Compliance Services Director contacts a SP (Submission Processing) P&A (Program and Analysis) analyst to pick up the sealed envelope and the corresponding memorandum.

  3. The SP P&A analyst prepares Form 3244 for each check. Each Form 3244 must have the GL "6400 Account" written on it.

  4. The SP P&A analyst hand-carries the checks with corresponding Form 3244s to Receipt and Control for deposit.

  5. Receipt & Control prepares Form 2221 and SF 215-A Deposit Ticket reflecting the DT date, ALC, deposit total, and TAS 20x3220. The SP P&A analyst hand-carries SF 215-A and Form 2221 to the Accounting section for journalizing.

  6. The Accounting section is responsible for:

    1. Preparing Form 8166 for Debiting 2320 account and Crediting 6400 account.

    2. Inputting transactions to RRACS.

    3. Stamping the journal number on SF 215-A, Form 2221, and Form 3244(s).

  7. The SP P&A analyst is responsible for:

    1. Making copies of the checks, journalizing SF 215-A and Form 2221.

    2. Stamping "Copy" on the copies.

    3. Hand-carrying copies and the original memorandum to the Compliance Services Director.

  8. The accounting section files the original Form 2221 and Form 3244(s) with copies of the checks in the 6400 Account case file.

    Note:

    Forms 2221 and 3244 are forms that contain personal identification information and must be hand-carried to each area. The forms must be locked in a secured cabinet.

3.17.63.9.6  (03-31-2014)
Insolvency Payments (Ogden Only)

  1. The Philadelphia Campus Support function receives insolvency payments converted by Paper Check Conversion (PCC), using the Electronic Verification and Image Services (ELVIS). Daily, a campus technician scans the checks and electronically transmits them to the Federal Reserve Bank (FRB) for deposit using an Ogden's ALC.

  2. Each deposit has a unique Doc-ID with the following JJJ4625DDDDDDY format where:

    1. JJJ are the fields used for inputting the Julian date.

    2. 4625 represents the insolvency account.

    3. DDDDDD are the fields used for inputting the deposit ticket numbers.

    4. Y is the field used for inputting the list year.

  3. The next business day, a campus technician faxes Form 784 to Ogden (note the Doc-ID number), after the technician electronically transmits the insolvency payments. Fax Form 784 to: (801) 620-6198/6858.

  4. For processing deposit tickets, an Ogden insolvency technician:

    1. Daily, accesses ELVIS and retrieves the source documents (deposit tickets) associated with the payments input by Philadelphia.

    2. Prints two copies of the deposit ticket and all checks related to that deposit.

  5. For processing deposit tickets, an Ogden accounting technician:

    1. Journalizes the deposit ticket to RRACS using window 210. Debits Account 7009 and Credits Account 4625.

    2. Writes or stamps the journal number on the deposit ticket and on the supporting documentation. For example, Form 783 or Form 784.

    3. Places the original deposit ticket in the bin for the CIR technician.

  6. For processing debit vouchers, the Ogden accounting technician:

    1. Prints two copies of the debit voucher.

    2. Retrieves a copy of the dishonored check (using CIRA (Central Image Research Archive) feature on ELVIS and queries the unique ID from the debit voucher).

    3. Journalizes the debit voucher to RRACS using Windows 220. Debits 1710 and Credits 2110.

    4. Faxes a copy of the debit voucher, detail report, and dishonored check to the CIO at the Philadelphia campus.

  7. Daily, the Area Office Remittance Register (AORR) generates Form 3244 information using command code PAYMT. The deposit ticket total amounts, AORR, and checks should agree. The AORR money amounts must equal the deposit tickets totals.

  8. AORR EOD 1640 contains more than one Doc-ID. Each Doc-ID money amount must be notated.

  9. Philadelphia campus is responsible for:

    1. Faxing Form 3210 with all check(s) input using command code PAYMENT. The Doc-ID is listed on both forms for the technician to balance.

    2. Debiting Account 4625 for the money on the AORR using Windows 498.

    3. Crediting the MF account 4120 and/or 4220 found on EOD16 run, page 6. The NMF items are transferred to Cincinnati.

    4. Using the same journal window (498) for reclassification purposes. Debit the appropriate tax class and Credit the 7009 Account.

  10. The accounting technician:

    1. Uses 498, Recovery Insolvency window for debiting Account 4625 and crediting MF (F4120 and/or F4220).

    2. Reclassifies as needed, using account 7009 and the appropriate tax class.

    3. Transfers all Non-Master File transactions to the Cincinnati campus using Form 2158.

    4. Writes or stamps the journal number on the AORR, after posting the journal entry into RRACS.

    5. Sends the original AORR to data control and a copy of the AORR to the Insolvency technician.

    6. Maintains the AORR in the insolvency case file in the Accounting section.

  11. For maintaining the suspense account, daily, the accounting technician is responsible for:

    1. Using the supporting backup for inputting the deposit ticket and verifying check information on the Excel Insolvency Suspense spreadsheet.

    2. Inputting the Julian date, DT number, and DT date.

    3. Listing each check separately, limit to seven, under the deposits column on the Excel spreadsheet.

    4. Inputting the journal information from the DT.

    5. Filing the deposit tickets, in date, in the case file folder.

    6. Noting "closed" on the insolvency suspense spreadsheet after all checks post to AORR.

    7. Following up with Campus Support, if any insolvency suspense cases remain open after five (5) days.

  12. Each Friday, the RACS DBA generates the insolvency suspense report (RACS 0139) and balances it to the insolvency suspense spreadsheet. Every Monday morning, the RACS DBA emails the insolvency suspense spreadsheet to the campus support team manager.

  13. Monthly, the accounting technician completes a reconciliation sheet for the insolvency suspense account 4625. Only open case files are reflected on the reconciliation sheet.

    Note:

    The net total for account 4625 must always be a credit or zero balance.

  14. The accounting technician takes the net totals from the monthly reconciliation sheet plus or minus the net totals from the monthly trial balance account 4625 to determine if the balance net zero.

  15. If the monthly Reconciliation Report is out of balance, the accounting technician will:

    1. Check the insolvency suspense report (RACS Report 0139) for any 210 journals that do not have a case file number or a 498 journal not used to close out a transaction.

    2. Check the insolvency suspense spreadsheet transaction against the RACS report to ensure they match.

  16. After balancing the monthly reconciliation sheet, management must review, approve, initial and date the monthly reconciliation sheet.

  17. The accounting technician completes Form 3997, Reconciliation of General Ledger Account report, and forwards the report to HQ SP. The reconciliation sheet and the supporting documentation are maintained in a closed file for the accounting period.

3.17.63.9.7  (03-31-2014)
Foreign Bank Account Records (FBAR) Payments (TAS 203220) (Cincinnati Only)

  1. Foreign Bank Account Records Payments are considered miscellaneous receipts that are not reflected on the taxpayer's account.

  2. ECC-MTB:

    1. Deposits the payments by PCC using ELVIS.

    2. Scans the checks daily and electronically transmits them to the FRB for deposit using Cincinnati's ALC.

    3. Prepares a manual refund for taxpayers overpayments.

  3. The accounting technician:

    1. Posts the overpayment as a miscellaneous refund (window 501); Debits account 6400 and Credits account 4801.

    2. Records payment amount in TAS 203220.

    3. Writes or stamps the journal number on the refund document.

3.17.63.9.8  (03-31-2014)
Offer-in-Compromise (PCC) Payments (Brookhaven, Cincinnati, Memphis, and Ogden Only)

  1. Offer-in-Compromise (OIC) payments received in Brookhaven and Memphis are deposited by PCC using ELVIS.

  2. Daily, the Brookhaven and Memphis Perfection/OIC Teams fax the PCC Deposit Breakdown Sheet and Form 13479s, for the current day deposit to the Cincinnati RRACS. The PCC/OIC package, including the batch listings, Form 13479s, and the original Form 2515s must be sent by overnight traceable mail to:
    Internal Revenue Service
    201 W Rivercenter Blvd.
    Stop 21, RRACS Team 101
    Covington, Kentucky 41011

  3. Daily, the Cincinnati RRACS accounting technician must access ELVIS and retrieve all electronic DT/DVs for Brookhaven and Memphis OIC payments.

  4. For processing deposit tickets, the Cincinnati accounting technician:

    1. Prints a copy of the deposit ticket and downloads the Deposit Ticket Report to a file.

    2. Balances the PCC/OIC package to the deposit ticket.

    3. Journalizes the deposit ticket to RRACS.

    4. Prepares Form 2158 to transfer the Brookhaven or Memphis credit from Unidentified Remittances, (Account 4620), to Ogden for MF processing.

  5. For processing debit vouchers, the Cincinnati accounting technician:

    1. Prints a copy of the debit voucher and downloads the Debit Voucher Report to a file.

    2. Retrieves a copy of the dishonored check. (Using the CIRA (Central Image Research Archive) feature on ELVIS, query the 21 digit unique transaction ID from the debit voucher.)

    3. Journalizes the debit voucher to RRACS.

3.17.63.9.9  (03-31-2014)
Accounting Packages

  1. The accounting package consists of several deposit documents for journalizing into RRACS.

  2. All accounting packages received in RRACS must be journalized within two business days.

    Note:

    Do NOT wait for the confirmed deposit ticket before journalizing.

  3. Accounting packages that include losses or shortages must have proper documentation.

  4. Deposit tickets and the IDRS Recap information must be cross-referenced with the journal number for audit trail purposes.

3.17.63.9.9.1  (03-31-2014)
Integrated Data Retrieval System (IDRS) Accounting Package

  1. The IDRS accounting package contains the following documents:

    1. SF 215-A, Deposit Ticket.

    2. IDRS Remittance Register.

    3. IDRS Recap (AORR, EOD 16).

  2. The accounting technician:

    1. Inputs the SF 215-A into RRACS.

    2. Posts the correct amount in the proper tax class field using window 210.

    3. Cross-references the deposit tickets and the IDRS Recap with the journal number.

    Note:

    Do NOT wait for the confirmed deposit ticket before journalizing.

3.17.63.9.9.2  (03-31-2014)
Manual Accounting Package

  1. The manual accounting package contains the following documents:

    1. SF 215-A.

    2. Form 813 (duplicate for MF and original or third copy for NMF).

    3. Forms 813-A.

    4. Form 3460.

    5. NMF Subsequent Payments with duplicate Form 813.

  2. The accounting technician:

    1. Date stamps the DT/DVs when they are received in the Accounting section.

    2. Checking the SF 215-A for missing amounts. When an amount is missing, the Accounting section is authorized to make a pen and ink change to the SF 215-A and write the missing amount to Tax Class 2.

    3. Inputs the SF 215-A into RRACS.

    4. Posts the correct amount in the proper tax class field using window 210.

    5. Reclassifies the pen and ink amount in Tax Class 2 to the correct tax class (the total amount and the date on the DT/DV always remains the same).

    6. Cross-references the deposit tickets and the IDRS Recap with the journal number.

    Note:

    Do NOT wait for the confirmed deposit ticket before journalizing.

  3. EXCEPTION: For weekend processing occurring during peak season, the deposits are made on the next business day. Ensure the deposit ticket reflects the current date, banks do not accept a deposit ticket with a previous day's date.

3.17.63.9.9.3  (03-31-2014)
Electronic Fund Transfer (EFT) Accounting Package

  1. The EFT accounting package contains the following documents:

    1. SF 215-C.

    2. Supporting documentation.

  2. The accounting technician:

    1. Inputs SF 215-C into RRACS with total amounts and tax class information.

    2. Determines the tax class amount by the EFT message on the Treasury Financial Communication System support listing.

    3. Cross-references the SF 215-C and supporting documentation with the journal number.

    Note:

    Do NOT wait for the confirmed deposit ticket before journalizing.

3.17.63.9.9.4  (03-31-2014)
Lockbox Accounting Package

  1. Lockbox electronically transmits files to the MCC or TCC computing center. The file generates the batch journal 180, and the batch journal posts to RRACS.

  2. The accounting technician:

    1. Verifies the batch journal 180 to the SF 215-A, deposit ticket.

    2. Writes or stamps the batch journal number on the SF 215-A and supporting documentation.

    3. For discrepancies, submits a Knowledge Incident/Problem Service Asset Management (KISAM) ticket to: BU-CFO-RFM-RA-RS & A.

    4. For batch journals failing to post to RRACS, submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers. The technician may manually journalize a 210 entry.

  3. RRACS produces the Lockbox Error Report (0128), if there is a problem with the Lockbox batch journal.

3.17.63.9.9.5  (03-31-2014)
Integrated Submission and Remittance Processing (ISRP) Accounting Package

  1. The ISRP accounting package contains the following documents:

    1. SF 215-A.

    2. IMF and BMF SCCF (Service Center Control File) Listings.

    3. ISRP Remittance Register.

    4. ISRP General Ledger Account Number List for each deposit ticket.

  2. ISRP:

    1. Transmits a file to RRACS.

    2. Generates a batch journal window 170.

    3. Posts transaction to RRACS.

  3. The accounting technician:

    1. Verifies the batch journal 170 to the SF 215-A, deposit ticket and supporting documentation.

    2. Writes or stamps the batch journal number on the SF 215-A and on the supporting documentation.

    3. For discrepancies, submits a KISAM ticket to: BU-CFO-RFM-RA-RS & A.

    4. For batch journals failing to post to RRACS, submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers. The technician may manually journalize a l 210 entry.

  4. RRACS produces the ISRP Error Report (0129) when a problem arises with the ISRP batch journal.

3.17.63.9.9.6  (03-31-2014)
Electronic Federal Tax Payment System (EFTPS) Accounting Package (Ogden Only)

  1. The EFTPS accounting package contains the following documents:

    1. SF 215-A.

    2. Tax Class Summary Report.

    3. EFTPS Electronic Reject/Offset Report.

  2. EFTPS transmits a file to RRACS. RRACS generates batch journal windows 110, 111, 112, 113, 114 and posts to RRACS.

  3. The accounting technician:

    1. Verifies the SF 215-A, deposit ticket and supporting documentation against the EFTPS batch journals.

    2. Writes or stamps the batch journal number on the SF 215-A and supporting documentation.

    3. For discrepancies, submits a KISAM ticket to: BU-CFO-RFM-RA-RS & A.

    4. For batch journals failing to post to RRACS, submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers.The technician may manually journalize a 210 entry.

  4. RRACS produces the EFTPS Error Report when a problem arises with the EFTPS batch journal.

3.17.63.9.9.7  (03-31-2014)
Miscellaneous Accounting Package

  1. The miscellaneous accounting package contains the following documents:

    1. SF 215-A.

    2. Form 1963.

    3. Form 656.

    4. Form 2433, Part 8A.

    5. F4506.

    6. Form 3245 (accompanied by Form 813).

    7. Form 2221.

  2. The accounting technician:

    1. Date stamps the DT/DVs when they are received in the Accounting section.

    2. Checks the SF 215-A for missing amounts. For amounts missing, the Accounting section authorizes pen and ink changes to the SF 215-A and writes the missing amount to Tax Class 2.

    3. Inputs the SF 215-A into RRACS.

    4. Using window 210, posts the correct amount in the proper tax class field.

    5. Reclassifies the pen and ink amount in Tax Class 2 to the correct tax class. The total amount and the date on the DT/DV always remain the same.

    6. Cross-references the deposit tickets and the IDRS Recap with the journal number.

    Note:

    Do NOT wait for the confirmed deposit ticket before journalizing.

3.17.63.9.10  (03-31-2014)
Deposit Discrepancies

  1. For deposit ticket errors, the financial institution sends a SF 215-A to the campus. Types of deposit discrepancies are:

    1. Discrepancies between IRS and the financial institution receiving the deposit.

    2. Discrepancies a taxpayer identified.

    3. Discrepancies with cash courier deposits and the financial institution.

  2. The deposit tickets are off-set with a SF 5515 Debit Voucher. If the check is returned by the financial institution as non-negotiable, the campus receives a SF 5515 debit voucher to debit the taxpayer account and credit 1710 general ledger account (Dishonored Check).

  3. The deposit ticket may be applied to the taxpayer's account or, if the amount is less than one year old, it may be journalized to Unidentified Remittance File (URF). If the credit amount is one (1) year or more and/or the amounts are numbered with Doc code 48 or 58, they are journalized to Excess Collection file (XSF). Supporting documentation is required.

  4. The accounting technician:

    1. Date stamps the DVs when they are received in the Accounting section.

    2. Inputs the SF 5515 into RRACS.

    3. Posts the correct amount using window 220.

    4. Stamps the journal number on the Debit Voucher and supporting documentation.

    5. Forwards a copy of SF 5515 and supporting documentation to the Dishonored Check Unit.

  5. When the Dishonored Check technician fails to resolve the error after 90 days, Revenue Accounting journalizes the SF 5515 and supporting documentation upon receipt of the document. The accounting technician:

    1. Journalizes the transaction using window 308 and debits Account 7650 Loss Deposit Discrepancies.

    2. Posts the correct amount for debit 7649/7650 and credit 1710/1720/4120/4220/4420/6570/6800 or General Ledger Account 6900.

    3. Stamps the journal number on the debit voucher and supporting documentation.

    4. Reclassifies the amount from Tax Class 1 to the correct tax class.

  6. For additional information, see also IRM 3.0.167, Losses and Shortages.

3.17.63.9.11  (03-31-2014)
Scorecard

  1. The HQ CFO uses a monthly quality scorecard to establish controls and checks to:

    1. Track timely submission of reports.

    2. Verify data accuracy.

    3. Verify supporting documentation.

  2. The campus reports submitted monthly are rated using the following criteria:

    • Green - Submitted Timely to all contacts; all supporting documentation is attached.

    • Yellow -Submitted Timely to all contacts; some supporting documentation is missing.

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

    Note:

    A Green rating, for all monthly submissions, is desirable.

  3. CFO Scorecard rates the following monthly reports:

    1. SF 224, Statement of Transactions.

    2. SF 6652, Statement of Differences.

    3. Form 3997, Reconciliation of Subsidiary Accounts Report.

    4. Trace ID Reconciliation Report.

    5. Suspense Accounts.

3.17.63.9.11.1  (03-31-2014)
SF 224, Statement of Transactions

  1. The campuses submit the SF 224, Statement of Transactions monthly to Central Accounting Reporting System (CARS). The HQ CFO reviews the submission for timeliness using the following criteria:

    • Green - Submission made by 12:00 PM local time on the second business day.

    • Yellow - Submission made from 12:01 PM to 2:00 PM local time on the second business day.

    • Red - Submission made after 2:00 PM local time on the second business day.

  2. The following problems may prevent timely submission of the SF 224 report:

    1. Posting occurring after SF 224 generation in RRACS.

    2. Requests for the SF 224 Supplemental Report.

    3. Systemic problems. (Yellow and Red criteria do not apply).

    4. Password problems.

    5. Failing to verify computer connections to CARS.

    6. Failing to ensure the CARS users are certified.

3.17.63.9.11.2  (03-31-2014)
SF 6652, Statement of Differences Reconciliation Report

  1. The campuses download the SF 6652, Statement of Differences Reconciliation Report, from CARS monthly. The DBA reconciles the balances on the report and sends the report to HQ CFO three workdays after the 18th of each month. The HQ CFO reviews the SF 6652 report for timeliness using the following criteria:

    • Green - Reconciliation completes in three workdays after the 18th of the month.

    • Yellow - Reconciliation completes in four or five workdays after the 18th of the month.

    • Red - Reconciliation completes in six workdays after the 18th of the month.

  2. The HQ CFO reviews the SF 6652 report for completeness using the following criteria:

    • Green - All columns contain information.

    • Yellow - Five or less columns are missing information.

    • Red - More than five columns are missing Information.

  3. The HQ CFO reviews the SF 6652 report for supporting documentation using the following criteria:

    • Green - Provides supporting documentation for at least the prior three audit months or older.

    • Yellow - Provides supporting documentation for at least one of the prior three audit months or older.

    • Red - Does not provide supporting documentation for the prior three audit months or older.

  4. The HQ CFO reviews the SF 6652 report to verify it reconciles to RRACS using the following criteria:

    • Green - Report reconciles.

    • Yellow - Reconciliation information not available.

    • Red - Report contains unreconciled items.

  5. The HQ CFO reviews the SF 6652 report for reconciliation of aged items using the following criteria:

    • Green - No aged items on the report for more than three audit months.

    • Yellow - Aged item information not available.

    • Red - Report contains aged items for more than three audit months.

3.17.63.9.11.3  (03-31-2014)
Form 3997, Reconciliation of Subsidiary Accounts Report

  1. The Accounting section prepares Form 3997, Reconciliation of Subsidiary Accounts Report and emails it to HQ SP.

  2. The HQ SP reviews the Form 3997 report for timeliness using the following criteria:

    • Green - Receives the report on or before the 25th of the month.

    • Yellow - Receives the report on the 26th or the 27th of the month.

    • Red - Receives the report on or after the 28th of the month.

  3. The HQ SP reviews the Form 3997 report for completeness using the following criteria:

    • Green - Provides information for all columns.

    • Yellow - Missing information for five or less columns.

    • Red - Missing information I for more than five columns.

  4. The HQ SP reviews the Form 3997 report for supporting documentation using the following criteria:

    • Green - Provided supporting documentation for all aged reconciled and unreconciled items.

    • Yellow - Missing supporting documentation for one aged reconciled and unreconciled item.

    • Red - Missing supporting documentation for more than one aged reconciled and unreconciled item.

  5. The HQ SP reviews the Form 3997 report for required signatures using the following criteria:

    • Green - The report contains the required signatures.

    • Yellow - The report does not contain signatures.

    • Red - The report does not contain the required signatures.

  6. The HQ SP reviews the Form 3997 report to verify it reconciles to RRACS and the MCC Reciprocal Accounting Control Record (RACR) using the following criteria:

    • Green - The report balances to RRACS and RACR items.

    • Yellow - The report is not available.

    • Red - The report does not balance to RRACS and RACR items.

  7. See also IRM 3.17.64, Accounting Control General Ledger Policies and Procedures for additional scorecard requirements.

3.17.63.9.11.4  (03-31-2014)
Trace Identification (TID) Reconciliation Report

  1. The Accounting section prepares the TID Reconciliation Report (TID Report) and faxes or emails it to HQ CFO.

  2. The HQ CFO reviews the TID Report for timeliness using the following criteria:

    • Green - Report received on the 20th workday of the month.

    • Yellow - Report received one workday after the 20th workday of the month.

    • Red - Report received two workdays after the 20th workday of the month.

  3. The HQ CFO reviews the TID Report for completeness using the following criteria:

    • Green - Information is provided for all columns.

    • Yellow - Information is missing on five (5) or less columns.

    • Red - Information is missing on more than five (5) columns.

  4. The HQ CFO reviews the TID Report to verify all items are reconciled using the following criteria:

    • Green - All columns have detail information.

    • Yellow - Error type "Z" is listed on five (5) or less items.

    • Red - Error type "Z" is listed on more than five (5) items.

  5. The HQ CFO reviews the TID Report to verify managers were contacted using the following criteria:

    • Green - Managers have been contacted.

    • Red - Managers have not been contacted.

  6. The HQ CFO reviews the TID Report for required signatures using the following criteria:

    • Green - The required signatures are noted.

    • Yellow - No signatures are noted.

    • Red - The required signatures are not noted.

3.17.63.9.12  (03-31-2014)
Sale of Securities

  1. The Fiscal Service, formerly Bureau of Public Debt (BPD), handles the security liquidation program. Fiscal Service pays IRS electronically when the sale of these securities occurs.

  2. The payments are made through a broker (third party contract with Fiscal Service) using FEDWIRE.

  3. A special format was designed to identify these specific payments to the RRACS technicians. Contact names are included in the message format to identify the case holder and expedite the processing of the funds.

  4. Payments received for this program are considered deposit fund receipts.

  5. The ALC determines which campus maintains case files. It also provides the location for final payment transmission.

  6. The field office, Special Procedure, closely monitors these payments and case files. After receiving payment, the technician matches case file information with payments received. The technician makes a notation in CIR, under the screen entitled FEDWIRE Payments.

  7. Fiscal Service is responsible for notifying the field office after sending payment via FEDWIRE. Weekly, the accounting technician checks CIR, and FEDWIRE Payments, for payment transmissions.

3.17.63.9.13  (03-31-2014)
Manual Confirmed Deposits Processing Procedures

  1. Financial institutions are not responsible for confirming deposits made using Over the Counter Network (OTCnet).

  2. The technician is responsible for manually posting confirmation to RRACS, using the 211 window, within two business days if CIR fails to post the confirmation journal. The technician must confirm the deposit ticket on the same business day during the last week of the month. The Treasury identification number and the amount must match the deposit ticket number and the Deposit Ticket File. If the Treasury identification number was posted incorrectly, to RRACS, the DBA must correct it.

  3. The technician is responsible for contacting the financial institution to initiate a deposit trace, if SF 215-A confirmed copy is not received within two weeks of the deposit ticket date. The technician makes a second contact no later than five workdays after the initial contact, if confirmation is not received.

    Note:

    Foreign remittance deposits normally take five (5) workdays for confirmation.

3.17.63.9.14  (03-31-2014)
Over the Counter Network (OTCnet)

  1. Over the Counter Network (OTCnet) is a Treasury secure web-based application that:

    1. Automates the deposit reporting process.

    2. Provides the ability to track deposits from the point of entry to final posting.

    3. Provides the ability to confirm deposit tickets electronically.

3.17.63.9.14.1  (03-31-2014)
Accessing OTCnet

  1. The Revenue Accounting section identifies the technician as an OTCnet user and the Local Security Administrator (LSA) creates a profile for the user. All OTCnet users must complete the online training course provided on the Fiscal Service OTCnet website prior to OTCnet access. For questions or assistance using OTCnet, contact the Treasury OTC Support Center via telephone at (866) 945-7920 or via email: fms.otcchannel@citi.com.

  2. After completing the training course, the user must complete the OTCnet User Authorization Form and sign OTCnet Rules of Behavior. The employee's manager submits the OTCnet User Authorization Form and Training Certification to the LSA.

  3. After OTCnet permission is assigned, three emails are sent to the employee in the following order:

    1. The first provides the user ID.

    2. The second provides a temporary password.

    3. The third provides the OTCnet permission.

  4. After receiving the user ID and password, the user logs on to the Treasury User Provisioning to change the temporary password, and provide answers to the secondary authentication questions.

3.17.63.9.15  (03-31-2014)
Automated Deposit Records Confirmation

  1. IRS accesses deposit information through CIR to:

    1. Verify deposits; FEDWIRE transfers; and DT/DV adjustments.

    2. Resolve Report 1137, CIR Error Report open items.

    3. Research financial institution discrepancies.

    4. Reconcile the Statement of Differences.

    5. Access Electronic File Transfer deposits.

  2. CIR is available Monday through Friday, from 6:00 a.m. until 8:00 p.m. EST. CIR retains deposit information for one year and retains FEDWIRE information for the current and the prior month.

  3. Daily, the accounting technician is responsible for downloading and printing deposit record data (DT/DVs) through CIR and RRACS.

  4. Daily, CIR uses the deposit record data to generate the following reports:

    1. Report 1134, Matched CIR Records.

    2. Report 1135, CIR Recirculating Records.

    3. Report 1136, Unmatched RACS CIR Records.

    4. Report 1137, CIR Error Report.

    Note:

    The accounting technician is responsible for printing the above reports, daily.

  5. Report 1134 lists matched records reported by the financial institution and campus. The confirmation journal number is on the report. The accounting technician stamps the journal number on the confirmed deposit ticket copy.

  6. Report 1135 lists deposit tickets and debit vouchers reported by the financial institution to Fiscal Service. Treasury number with an asterisk next to it is an indication the document post to RRACS on the report date.

  7. Report 1136 lists deposit tickets and debit vouchers journalized by the campus. Treasury number with an asterisk next to it is an indication the document post to RRACS on the report date. The DBA must obtain management's approval before inputting a modification (902 window) to correct incorrect DT/DV journalizations.

  8. Report 1137, CIR Error Report identifies the following error codes:

    1. Error Code A -100% Duplicate Deposit.

    2. Error Code B - Deposit Conf Date is missing.

    3. Error Code C - Prep Date cannot be later than the confirmed date.

    4. Error Code D - Invalid Form Code.

  9. Report 1137 listing deposit tickets, must be manually confirmed. They do not appear on Report 1135, CIR Recirculating Records. Daily, the accounting technician must research and resolve errors on Report 1137.

    Note:

    Errors appearing on Report 1137 do not appear on the next day's error report.

  10. Weekly, the technician researches discrepancies or unconfirmed deposits not resolved within five business days of the report date. The reports are as follows:

    1. Report 1135, CIR Recirculating Records.

    2. Report 1136, Unmatched RACS CIR Records.

    3. Report 1137, CIR Error Report.

    Note:

    Adjustment DT/DVs have the original deposit prepared date and appear on the reports as an aged date. The accounting technician uses the RRACS received date for adjusting DT/DVs and to determine the first contact date for research and follow-up purposes. The date of first contact must occur within nine calendar days. This includes foreign currency deposits.

  11. For unresolved DT/DVs, after the initial contact, the technician makes a second contact and notifies the RRACS manager. A comprehensive history sheet must be completed for this contact with the following information:

    1. Action(s) taken.

    2. Date of action.

    3. Name of contact.

    4. Descriptive information for action taken.

  12. For DT/DV that are unresolved for more than five business days after the second contact, the technician makes a third contact to the RRACS Manager for possible escalation to the accounting operation manager while continuing to make efforts to resolve the issues.

  13. Weekly, the RRACS manager must review, initial, and date the CIR reports to ensure prompt discrepancy resolution.

  14. Daily, during the final week of monthly processing, the technician researches discrepancies and/or unconfirmed deposits not appearing on the CIR reports.

3.17.63.9.16  (03-31-2014)
Tax Class Classification

  1. Revenue collected during a current fiscal year is controlled and reported on a deposit ticket/debit voucher by the tax class related to TAS.

  2. For IRS reporting, the fiscal year starts from October 1 through September 30.

  3. The deposit ticket or related support listings show the classification when the deposit is initially submitted to a financial institution. Debit vouchers returned from the financial institution for invalid or dishonored remittances are initially classified as tax class 1 (withholding tax) and subsequently reclassified after determining the proper tax classification.

3.17.63.9.16.1  (03-31-2014)
Tax Class Reclassification

  1. When mis-classification errors are identified, the tax class must be reclassified in RRACS as soon as possible. Examples of mis-classification are documents input with the wrong tax class or typographical errors on deposit tickets. For reclassification, the accounting technician is responsible for the following:

    1. Transferring a credit between IMF, BMF, and/or NMF accounts by offsetting debits between modules.

    2. Posting a reclassification journal for adjustments to RRACS. All funds reclassified in RRACS must be in the current fiscal year.

    3. Reclassifying child support payments for improper classification. At month end, the technician uses the amounts on Form 5461, Report of Action under PL 93-647.

    4. Photocopying fees deposited and credited to Account 2340. The financial institution sends the RRACS unit the SF 5515 and a copy of the taxpayer's dishonored check. The technician reverses the credit in Account 2340.

3.17.63.9.16.2  (03-31-2014)
Tax Class Reclassification of Non-Revenue Receipts

  1. Erroneous refund and deposit repayments are reclassified to tax class related to TAS. Prior year revenue receipts are not reclassified.

3.17.63.9.16.3  (03-31-2014)
Fund Adjustments Reclassifications

  1. Transferring receipts between funds, or within the same fund, require reclassification. The following transactions must be reclassified:

    1. Revenue receipts transferred from one tax class to another (source documents are Form 2424, Form 813, and IDRS recap, Page 4).

    2. Deposit tickets with incorrect credit classifications (source documents are SF 215-A, Form 813, and IDRS recap, Page 3).

    3. Dishonored check applications (source documents are DCF03, DCF05, and EOD16, Page 6).

    4. Renumbered rejects and nullified unpostables transferred from one tax class to another.

    5. Refund repayments deposited as revenue receipts.

    6. Child support payments.

    7. Service Center Control File (SCCF) adjustments involving a tax class change (source documents are Form 4028; SCF-11-41, Adjustment Control Record List Items with Control Record Source Code J; and SCF-11-47, Control Record Renumber Reclassification Summary).

    8. Reclassifications of corrected unpostables generated by ECC-MT (source document is the Control Data Run 02 Project 160).

    9. Budget clearing accounts, refund repayments, or revenue receipts adjustments.

    10. Anti-drug special funds.

  2. The technician journalizes entries using source documents from a prior window, or using Form 8166. When entries are subsequent to journal input on another window, the prior window journal number is used as the Doc-ID number for that window. For a journal number not used for the Doc-ID, the technician inputs the journal number in the message and in so doing, establishes an audit trail. The message column summarizes the adjustments made to fund receipt accounts.

  3. The technician inserts the original journal number as the Doc-ID number when the reclassification journal corrects a prior journal entry. Before posting journal entries, the technician inputs detail information (reason) for the reclassification in the message column. The Deposit Ticket Classification Report summaries all adjustments to tax class related to TAS.

  4. The Accounting technician transcribes or stamps the reclassification journal number on the supporting documentation.

3.17.63.9.17  (03-31-2014)
Civil Judgment Collections (Kansas City Only)

  1. Report 1136, lists deposit tickets and debit vouchers campus journalized, but not reported by the depository.

  2. The Department of Justice (DOJ) receives civil judgement payments and uses the Intra-Government Payment and Collection (IPAC) System to transfer these payments to Kansas City (ALC 20090900) and create documentation of the transfer. See also IRM 3.17.243, Miscellaneous Accounting.

  3. An Excel worksheet and other documentations provide the debtor's name, SSN, interest computation date, cause of the action, collection office claim number, dollar amount, and collection office referral number that are included on the IPAC document.

  4. The accounting technician is responsible for:

    1. Reconciling the supporting documentation totals with the IPAC.

    2. Reviewing the support listing for payment identification.

    3. Contacting the DOJ collection officer when payment information is incorrect or disagrees with IPAC.

    4. Inputting IPAC to RRACS using TAS 20F3844 and requesting an IPAC to transfer the incorrect information back to DOJ.

3.17.63.9.18  (03-31-2014)
Wire Transfers/FEDWIRE

  1. Wire transfer systems use computer networks to link to financial institutions. Only approved applications using wire transfers may be accepted. When the daily support listing for FEDWIRE, contains unexpected payments, the technician contacts the analyst responsible for handling wire transfers for payment reversal.

    Note:

    EFT payments are wire transfers. EFT may be in the title of a computer generated report.

  2. Source documents and payment records supporting the wire transfer/FEDWIRE include:

    1. The support listing containing messages providing transaction details.

    2. SF 215-C computer-generated deposit ticket containing total wire transfer transaction(s) for the day. The deposit ticket must equal the daily total on the bottom of the support listing and the deposit ticket number must be printed on the support listing. After receiving the deposit ticket, the accounting section confirms receipt by providing the date in box 2 for reporting purposes.

    3. The SF 5515, Debit Voucher for reversing or correcting wire transfer/FEDWIRE transactions. Debit vouchers may be issued for dishonored checks, insufficient funds to support previously agreed-to automatic EFT transactions, or to correct erroneous deposits.

3.17.63.9.19  (03-31-2014)
Direct Debit Installment Agreement (DDIA)

  1. A Direct Debit Installment Agreement (DDIA) is a method of collecting payments. A taxpayer makes arrangements with collection personnel to repay tax liabilities in installments. The taxpayer signs an agreement authorizing IRS to electronically withdraw monthly installment payments from his/her bank account.

  2. The financial institution prepares a manual SF 215-A and records it in CIR on the payment due date.

  3. The financial institution creates and transmits to IRS a tape of all transactions which fail to process properly. These items are supported by debit vouchers which are passed through the Pittsburgh branch of the Cleveland FRB.

  4. Campus is responsible for:

    1. Monitoring the progress of all transactions including EFT 12 (debit) and EFT 18 (credit) identify transactions associated with DDIA. A deposit ticket must correspond with each EFT 12 summary. Likewise, a debit voucher for each EFT 18 summary is required. All EFT 12 and EFT 18 transactions must be included in EFT 16 and EOD 16 Reports on the appropriate dates. The journal contains the EFT 12, the EFT 18, and the DT/DV.

    2. Maintaining a log sheet to ensure all EFT 12 and EFT 18 processing is completed. Log formats may be established by individual campuses. Missing entries and mis-matched dollar amounts help identify problems quickly.

    3. Reconciling and balancing the deposit ticket with the EFT 12 summary daily.

    4. Journalizing entries through the Deposit Control menu.

    5. Reconciling and balancing the debit vouchers with the date in box 2, EFT 18 summary daily, and journalizing the entries.

    6. Preparing Form 2424 and journalizing transactions by debiting the proper SCCF account and crediting account 1720 for debit vouchers not received when the EOD 16 is ready for journalization and reclassifying the tax class when the EOC identifies the payment as other than tax class 1.

    7. Reconciling daily, and balancing EFT 12 and EFT 18 with EFT 16 and EOD 16 and contacting the financial institution or the NHQ transfer analyst to initiate a voucher trace when a debit voucher is not received within 10 business days of receiving the deposit. Debit vouchers are processed through the Pittsburgh FRB. If a debit voucher is not received within 10 workdays of the making of the deposit.

    8. Initiating research with IT (Information Technology) to locate missing runs and/or reports (Failure to ensure processing of all runs, or receipt of all DT/DVs, results in improper postings to the MFs, or in erroneous entries on RRACS). The financial institution statements should be retained for a period of three (3) years from the date of the statement.

    9. Coordinating with Collection and IT to ensure payments and tapes are generated and sent to the financial institution.


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