3.17.64  Accounting Control General Ledger Policies and Procedures (Cont. 2)

3.17.64.11 
Department of Justice (DOJ)
(Kansas City Only)

3.17.64.11.1 
General Ledger Accounts for DOJ

3.17.64.11.1.2  (12-07-2012)
Account 2915 DOJ Receipts
(Real Account, DR Normal Balance)
(TAS 20F3844) (Kansas City Only)

  1. All DOJ IPAC receipts will be reflected in Account 2915.

  2. IPAC amount will be reported on the SF 224 under TAS 20F3844.

  3. On the application window, reclassification is necessary from Account 2915 to the account series 21XX, 23XX, 24XX, and 7002.

  4. Due to a two year statute, FMS has determined that TAS 20F3855.11 is not the proper TAS to hold the DOJ transactions. The receipts will be reported under TAS 20F3844 to track these transactions separately.

3.17.64.11.1.3  (09-01-2011)
Account 4975 Liability DOJ Receipts
(Real Account, CR Normal Balance)
(Kansas City Only)

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

  2. Items placed in this account will be subject to expedited research to determine proper application, and will be transferred to the proper taxpayer's account upon identification.

  3. For large files, a quarterly balancing must be performed to ensure the accountability of the documents.

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

3.17.64.11.1.4  (09-01-2011)
Account 6400 Miscellaneous Revenue Collections
(Nominal Account, CR Normal Balance)

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

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

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

    1. 2305 No longer being used (20-1060).

    2. 2310 Treaty Country Receipts (20-3220).

    3. 2320 Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest (20-3220).

    4. 2325 Misc. Forfeiture Receipt (20-1099).

    5. 2345 Presidential Election Campaign (20X5081.1).

    6. 2350 Public Debt (20X5080.1).

    7. 2355 Federal Court Ordered Restitution for Costs and Penalties (203220).

    8. 2360 Conscience fund (20-1210) .

    9. 2365 LIFO Payments, Rev Proc 9744 Settlement Payments (20-3220).

    10. 2370 Mortgage Subsidy Bond Receipt (20-3220).

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

  5. Maintain a listing of all miscellaneous receipts under 20-3220. This information will be used for disclosure in the IRS Consolidated Financial Statement.

3.17.64.11.1.5  (09-01-2011)
Account 6950 DOJ Civil Debt Collection Holdback
(Nominal Account, DR Normal Balance)
(Kansas City Only)

  1. Each year the appropriations act for DOJ authorizes it to retain 3% of all amounts collected, pursuant to DOJ's civil debt collection litigation activities.

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

  3. Form 3809s are the external subsidiary record.

3.17.64.11.2  (09-01-2011)
Deposit of Collections From Civil Judgments
(Kansas City Only)
(RRACS Window 541)

  1. The Debt Management Section (DMS) of DOJ will transfer to Kansas City (ALC 2009-0900) any funds collected. All transfers will be made via IPAC.

  2. This Intra-Governmental Payment and Collection System Receipt (IPACR) will be supported by a listing showing the debtor's name and SSN, interest computation date, cause of the action, collection office claim number, dollar amount, and a collection office referral number. Upon receipt of the IPACR, Accounting will enter TAS 20F3844 (if not already present) and ensure that the total of the amounts on the listing equals the amount shown on the IPACR.

  3. After verification of the amount of IPACR and the support listings, the amount will be journaled into RRACS using a 541 Window, which can be found under the Disbursement, IPAC Receipts, IPAC DOJ which will debit Account 2915 (IPAC DOJ Receipts) and credit Account 4975 (DOJ Liability Receipt). The support listing will be used to determine where the payments should be applied.

  4. The payments will be reclassified from Account 20F3844 to the appropriate receipt account.

  5. Forward the source documents to the appropriate area for research and balancing. Necessary documents will be prepared and input to apply the payments to the proper taxpayer accounts.

  6. If the funds were erroneously transferred, the specified DOJ collection officer should be contacted, and DOJ will execute an IPAC to transfer the incorrect item back to DMS.

  7. If the funds are returned to DOJ, any actions taken in item (3) above must be reversed. The new Intra-Governmental Payment and Collection System Disbursement (IPACD) returning the funds to DOJ is input to RRACS.

3.17.64.11.3  (09-01-2011)
Applying DOJ Payments

  1. Civil payments can be applied using three different methods:

    1. Apply to Taxpayer account: RACS will receive Form 2424 to debit Account 4975, DOJ Liability account and credit taxpayers Account 4220 (IMF), 4120 (BMF), or 4420 (NMF) as appropriate.

    2. Apply to Account 6800, Excess Collection: RACS will receive Form 2424 to debit Account 4975 DOJ Liability and credit Account 6800 Excess Collection with Form 8758 and Form 813 to add payment to the Excess Collection File. Make 2 copies of each.

    3. Leave credit in Account 4975 DOJ Liability account: prepare Form 2424 to credit Account 4975 DOJ Liability.

  2. Verify to ensure the posting documents balance to the Form 813 total.

  3. Verify to ensure all Form 813 and other forms prepared balance back to the IPAC document.

  4. RACS will journal the above documents using a 469 Window, which can be found under Accounting Applications, TRACS Application, IPACR Application. Follow the accounts listed on the posting documents for appropriate accounts.

    Note:

    The Form 2424 must contain the manager's initials to show that it has been reviewed and approved.

  5. RACS will also receive a Form 3809 to journal a 3% DOJ collection fee.

    1. Journal Form 3809 using a 469 Window, which can be found under Accounting Applications, TRACS Application, IPACR Application. The journalization will be a debit 6950 (DOJ Civil Debt Collection Hold-back) and credit Account 4975 (DOJ Liability account).

  6. Transcribe or Stamp journal number on all documentation and file and distribute accordingly.

3.17.64.11.4  (09-01-2011)
Court Ordered Criminal Restitution Payments
(Kansas City Only)

  1. Restitution is a legal remedy that can be ordered by the court, in a criminal case. A restitution order requires the criminal defendant to pay money or render services to victims in order to redress the loss the defendant has inflicted. Normally imposed during sentencing, it can be agreed to by the parties in a plea agreement or imposed as a condition of probation or supervised release.

  2. In a criminal tax case, the offense generally results in the loss of government property, i.e., the money to which the government was entitled under the tax laws but which the defendant did not pay. Through a restitution order, a court can require a defendant to pay money to the IRS in order to redress the losses he or she inflicted on the federal treasury.

  3. In most criminal tax cases involving restitution, the amount of the tax loss is calculated from evidence admitted at trial or from information contained in the plea agreement and presented to the district court at sentencing.

  4. Restitution is not assessed as a tax, but payment of restitution for taxes owed must be credited against the civil liability for unpaid taxes as provided in a plea agreement or court order.

  5. Restitution should not be confused with civil tax liability.

    • The amount of the loss a defendant can be ordered to pay as restitution must result from the defendant’s criminal activity and that amount generally does not include civil tax penalties.

    • A restitution order does not bar the IRS from determining civil tax liability in an amount greater than the amount ordered payable to the IRS as restitution.

    • A restitution order also does not prevent a taxpayer from challenging the IRS’s determination that the civil liability exceeds the amount of the restitution order.

  6. Judgment and Commitment Orders (J & Cs) normally specify that defendants are to submit restitution payments to the office of the clerk of court in the district in which the defendant was sentenced. This will generally include restitution payments required to be paid to the IRS.

  7. The clerk of court has the responsibility for receiving, processing, and recording restitution payments made by defendants. The clerk of court will forward the money (Treasury checks, personal checks, and/or money order) to the victim(s) listed in the restitution order, which may include the IRS. Criminal restitution payments made to the IRS should be mailed to the address below.

  8. The clerk of court offices will disburse criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS will be processed by Submission Processing at the Kansas City Campus, only. The clerk of court offices have been requested to send all criminal restitution payments to the following address:
    IRS-RACS
    Attn: Mail Stop 6261, Restitution
    333 W Pershing Road
    Kansas City, MO 64108

    Exception:

    If criminal restitution payments are routed to an IRS office or campus other than Kansas City, they must be transshipped via overnight traceable method per Manual Deposit IRM 3.8.45.6.26, Department of Justice/Criminal Restitution Program Payments (KCSPC Only).

  9. Inquiries received at other sites regarding court ordered restitution payments should be forwarded to the Kansas City SPC DOJ Team Manager, 816-325-3780 for receipt and reconciliation of criminal restitution payments.

  10. Personal checks and/or money orders received directly from the taxpayer and not through the ‘clerk of court' are still considered restitution payments if the payments are being made pursuant to a court order in a criminal case.

3.17.64.11.4.1  (10-01-2010)
Restitution Payment Processing
(RRACS Window 400)

  1. Criminal restitution checks are received daily from the courts.

  2. Some payments received are split payments with partial money going to master file and part to Account 6400 (Miscellaneous Revenue Collection).

  3. RACS will receive Form 3244 and Form 2424 with Form 813.

  4. Journal using a 400 Window, found under Accounting Applications. The journal will be a debit to Account 4220 (IMF) and a credit to Account 6400 (Miscellaneous Revenue Collection). Reclass, in same window, a debit to Account 2355 (Federal Court Ordered Restitution) and a credit to Account 2120 (Individual Income, Other Revenue Receipts).

    Note:

    Any payments received via check or money order that cannot be applied or resolved will be input to Treasury Symbol 20-3220, Account 2355 (Federal Court Ordered Restitution) and credited to 6400 (Miscellaneous Revenue Collection).

3.17.64.12  (10-01-2013)
Direct Debit Installment Agreements (DDIA)

  1. DDIA is a collection program. Taxpayers make arrangements with collection personnel to repay tax liabilities in installments. An agreement is signed allowing IRS to periodically withdraw the installment amount electronically from the taxpayer's bank account. The customer's account is debited only once a month.

  2. On the expected payment due date Bank of America prepares a paper SF 215-A and records it in CIR.

  3. Bank of America 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 FRB.

  4. Site responsibilities:

    1. Monitor the progress of all transactions. EFT 12 and EFT 18 identify all debit and credit transactions, respectively, 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. EFT 12 and 18 constitute the journal document along with the DT/DV.

    2. Keeping a log ensures that all processing is completed. Log formats can be established by individual sites. Missing entries and mis-matched dollar amounts will identify problems quickly.

    3. Verify and balance the deposit ticket with the EFT 12 summary daily. Journalize entries through the Deposit Control menu.

    4. Verify and balance the debit vouchers from the memo or confirmed copy, using the date in box 2 to the EFT 18 summary daily, and journalize entries. If the debit voucher is not received at the time the EOD 16 is ready for journalization, a Form 2424 may be prepared and journalized to debit the proper SCCF account and credit Account 1720. Upon receipt of the SF 5515, reverse the entry by debiting Account 1720 and crediting Account 1710. Reclassify when the EOD 16 run identifies the money as other than tax class 1.

    5. Verify and balance EFT 12 and EFT 18 to EFT 16 and EOD 16 daily. Debit vouchers are processed through the Pittsburgh FRB. If a debit voucher is not received within 10 work days, call Bank of America to initiate research or call NHQ transfer analyst.

    6. If runs or reports are missing, initiate research with Computer function to determine the reason. Failure to ensure processing of all runs, or receipt of all DT/DVs, will result in improper postings to the MF, or erroneous entries on RRACS. Bank of America also issues a monthly bank statement to accounting that includes T/P EIN, money amount, transaction date, and other data. This may be used as a research tool. The Bank of America statements should be retained for a period of three years from date of statement.

    7. Close coordination with Collection and Computer functions is necessary to ensure that the payments and tapes were generated to Bank of America.

3.17.64.13  (09-01-2011)
Dishonored Check File

  1. The Dishonored Check File (DCF) is a separate file within the Integrated Data Retrieval System (IDRS) containing records of all remittances returned to IRS by the depositaries upon which payment has been refused.

3.17.64.13.1  (09-01-2011)
General Ledger Accounts for Dishonored Checks

  1. The following accounts are associated with the dishonored check file:

3.17.64.13.1.1  (09-01-2011)
Account 1510 Other Receivables
(Real Account, DR Normal Balance)

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

  2. This account will also be used to clear unresolved debit items from SCCF, and unprocessable debits from the DCF. This account will be supported by case history files recording approval of the Campus Director to remove them from the SCCF. These items will be supported by Form 3809 for non-revenue receipt items, and Form 2424 for revenue receipt items.

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

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

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

3.17.64.13.1.2  (09-01-2011)
Account 1710 Dishonored Checks
(Real Account, DR Normal Balance)

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

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

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

  4. After the DCF file is balanced to all related SFs 5515, sub-batches are prepared and tapes are run. Entries to RRACS are made from the SF 5515 and tapes. Annotate all journal numbers and amounts on the DCF 03 run. Make sure total of journals balances with total added to DCF file, plus or minus any adjustments or errors, as noted.

  5. This account will also be used to record deposit discrepancies (losses) related to SF 5515. These items will be entered immediately onto the DCF for control purposes. Necessary research will be performed to determine the proper application of the debit. If, after 90 days, the debit cannot be resolved, it will be transferred to Account 7650, Deposit Discrepancies (See IRM 3.0.167, Losses and Shortages, for more information). The case must be documented with all actions taken to resolve the discrepancy. This documentation is needed to request relief of the loss.

  6. External subsidiary is the DCF on IDRS.

3.17.64.13.1.3  (09-01-2011)
Account 1720 Dishonored Check Adjustments
Real Account, DR/CR Normal Balance

  1. This receivable account will be used to record any discrepancies between the SF 5515, and the total of the related dishonored checks associated with the debit voucher.

    1. When SF 5515 is overstated, debit documents in the amount of the overstatement will be prepared and controlled in this account.

    2. When SF 5515 is understated, credit documents in the amount of the understatement will be prepared and controlled in this account.

    3. Items in this account will be cleared upon receipt of a supplemental or adjusting DT or DV.

  2. The DCF function is responsible for contacting the bank, research and resolution.

  3. This account will also be used to record EFTPS Electronic Reject/Offset Report (credit), and Electronic Reject/Offset Report (debit) (Ogden Only). The credit amount will be a rejected transmission that is included on a SF 215-A. The debit amount will offset a credit amount and will always have a SF 5515 with the Electronic Reject/Offset Report.

  4. External subsidiary record is the file of paper documents prepared individually for each adjustment.

3.17.64.13.1.4  (09-01-2011)
Account 1840 Other Receivable, Inactive
(Real Account, DR Normal Balance)

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

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

  3. Items may also be transferred from Account 4810. These case files will be supported by administrative approval delegated no lower than the Accounting Operation Manager.

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

  5. Upon expiration of the Collection Statute, items should be written off to Account 6600.

  6. External subsidiary records are the case history files.

3.17.64.13.1.5  (09-01-2011)
Account 6700 Foreign Check Collection Cost and Miscellaneous Bank Charges
(Nominal Account, DR Normal Balance)

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

  2. External subsidiary record is the case file.

3.17.64.13.1.6  (09-01-2011)
Account 7002 Deposit Fund Receipts/Disbursements

  1. This receipt and disbursement account records the receipt of monies to be placed in the deposit fund pending some subsequent action, and to record the disbursement of deposit fund monies. Included in the account are amounts received as a result of seizure and sale action, amounts received from taxpayers with offers in compromise, and miscellaneous receipt items held in this account pending legal action or proper application authority.

  2. Receipts for this account are recorded upon preparation of SF 215-A. The Campus Director is personally accountable for funds until deposits to the Treasury account are confirmed.

  3. Deposit fund monies are considered monies held in trust by the government. No interest is paid on deposit fund monies refunded. However, when a sale results in surplus proceeds, interest may be paid on the surplus.

  4. Individual records are maintained in the database. No external subsidiary record for this account is maintained. Amounts from this account are reported on SF 224 monthly.

3.17.64.13.2  (09-01-2011)
Dishonored Check Applications
(RRACS Window 210/220/400/411)

  1. RACS will receive the following DCF computer listings and documents from the Dishonored Check Function:

    1. EOD16, Pages 9 and 10

    2. Form 2424

    3. Form 4028

    4. Form 4830s

    5. SF 215A - Deposit tickets on redeposits or discrepancy washouts

    6. SF 5515

    7. DCF 03 and DCF 05

  2. EOD 16 run and DCF 05 run amounts should balance. These include the DCF applications to the MF accounts, both current and prior fiscal year.

  3. Journaling should be made from Pages 9 and 10 of EOD 16. Journaling of Current FY applications, Page 6, requires reclassification. The net reclassification to each tax class should be computed before going to the RRACS system for input. IDRS tape processing includes the journalization of prior and current year DCF applications and related reclassifications for current fiscal year.

  4. Using the RRACS 411 Window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/SCCF, journal each entry.

    1. The journalization will be a Debit to either Account 4120 (BMF), 4220 (IMF) or 4420 (NMF) and a Credit to Account 1710 (Dishonored Checks).

    2. Reclassification will be required. The reclass will be a Debit to 2110 (Withholding Revenue Receipts) and a Credit to any tax classes involved.

  5. Restricted applications from the DCF should include corrections to previous input errors or deletions from the DCF because of redeposits. For all redeposits, a deposit ticket will be received and journaled through the RRACS 210 Window, which can be found under the Deposit Main Menu under Deposit.

    1. The journalization will be a Debit to 2110 (Withholding Revenue Receipts) and a Credit to 1710 (Dishonored Checks). If the money on the SF 215 is not under tax class 1, then a reclass is needed. The reclass would be a Debit to the tax class on the SF 215 and a Credit to 2110 (Withholding Revenue Receipts).

  6. SF 5515 debit vouchers will be journaled as follows.

  7. Using the RRACS 220 Window, which can be found under the Deposit Main Menu under Debit Voucher, journal each debit voucher.

    1. The journalization will be a Debit to Account 1710 (Dishonored Checks) and a Credit to 2110 (Withholding Revenue Receipts).

  8. Any Form 2424 or 4028 should be journaled using the RRACS 400 Window which can be found under the Accounting Application Main Menu under Accounting Applications.

    1. Journal according to the accounts stated on the documents.

  9. Distribute runs and documents accordingly.

  10. Corrections to previous input errors will be "V" applies or "Z" applies.

    Note:

    A "V" apply deletes a record completely and "Z" apply changes the amount. These should require no journalization, but should balance the DCF with previously journalized amount.

3.17.64.13.3  (09-01-2011)
Dishonored Checks on Miscellaneous Deposits
(RRACS Windows 412/413)

  1. Dishonored checks may be received on the following:

    1. Deposit Funds Account 7002

    2. General Funds Account 23XX

  2. Any record on the DCF for one of these accounts should be voided and entries made from DCF 03. Source documents are required for each of these.

  3. RACS will receive a photocopy of check and DCF worksheet with account number annotated and the document ID number.

  4. For a deposit fund use the following journal:

  5. Using the RRACS 413 Window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/Deposit Fund, input each Doc-Id and amount separately.

    1. The journalization will be a Debit to either Account 4710 (Offer in Compromise), 4720 (Sales of Seized Property) or 4730 (Miscellaneous Deposit Funds) and a Credit to Account 1710 (Dishonored Checks).

    2. Reclassification will be required. The reclass will be a Debit to Account 2110 (Withholding Revenue Receipts) and a Credit to Account 7002 (Deposit Fund Receipts).

  6. For miscellaneous fees use the following journal:

  7. Using the RRACS 412 Window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/MISC Fee, input each amount separately.

    1. The journalization will be a Debit to Account 6310 (Miscellaneous Fees) and a Credit to Account 1710 (Dishonored Checks).

    2. Reclassification will be required. The reclass will be a Debit to Account 2110 (Withholding Revenue Receipts) and a Credit to either Account 2310 (Treaty Money), 2315 (Arbitrage - Ogden Only), 2320 (Miscellaneous Receipts), 2325 (Forfeiture), 2330 (EP/EO User Fees - Cincinnati Only), 2340 (Photocopy Fee), 2350 (Public Debt), 2360 (Conscience Fund), 2370 (Mortgage Subsidy Bonds), 2380 (Original Installment Agreement), 2385 (Reinstatement Installment Agreement) or 2395 (OIC User Fee - Brookhaven, Cincinnati and Memphis Only).

  8. Transcribe or stamp journal identification number on listing and/or documents for audit trail.

  9. Distribute run and documents accordingly.

3.17.64.13.4  (09-01-2011)
Dishonored Checks on Unidentified Remittances
(RRACS Window 404)

  1. RACS will receive from the Dishonored Check Function the DCF 03 daily run.

  2. RACS will journal from the DCF 03 using a RRACS 404 Window, which can be found under Accounting Application, Unidentified Apply, URF/MISC.

  3. The journal will be a Debit to Account 4620, Unidentified Remittance and a Credit to Account 1710, Dishonored Checks. Reclass if necessary, using the same window.

  4. Transcribe or stamp journal identification number on listing and/or documents for audit trail

3.17.64.14  (01-20-2012)
Enterprise Computing Center, Martinsburg
(ECC-MTB)

  1. ECC is primarily responsible for maintenance of the MF records for each taxpayer, and for the electronic processing of related inputs and outputs. ECC-MTB will maintain:

    1. Accounting and data control over BMF and IMF transactional data and accountability reports

    2. A RACR with each campus

  2. For each campus, ECC-MTB will prepare a separate SF 1166 or SPS print covering the total amounts of overpayment principal and interest posted to BMF and IMF refund files.

  3. A designated officer at ECC-MTB will certify each voucher for the account of the applicable Campus Director. See IRM 3.17.79, Accounting Refund Transactions.

  4. The BMF and IMF refund media and related certified vouchers will then be transmitted to the San Francisco Regional Operating Center for issuance of the refund checks (See IRM 3.17.79, Accounting Refund Transactions).

  5. In the MF posting operations at ECC-MTB, the computer will generate certain accounting adjustments, transactions and abstracts of revenue receipts by type of tax, and liability year classifications. These will be inscribed on output files for transmittal to ECC-MTB for posting to RRACS, and to the campus for the printing of required registers and summaries.

    Note:

    CADE stopped processing transaction data as of the end of Cycle 201124 All individual taxpayer accounts have been returned to the Individual Master File (IMF) and in January 2012, IMF will process all IMF transactions under the CADE 2 processing time line with daily processing. All general ledger activity is included under the IMF general ledger account.

3.17.64.14.1  (09-01-2011)
General Ledger Accounts for ECC

  1. The following accounts are associated with ECC.

3.17.64.14.1.1  (09-01-2011)
Account Series 4000 Liability Accounts

  1. This series of accounts records the Service's liability for the various suspense files, inventory files, and pre-payment amounts. Credits in these accounts are normally in process for application to a tax liability. This includes pre-payments such as estimated tax, for which no tax assessment has yet been made, but a tax liability is anticipated.

3.17.64.14.1.2  (09-01-2011)
Account 4110 ECC Suspense for the MF-BMF
(Real Account, DR/CR Normal Balance)

  1. This liability account records both debits and credits at or sent to ECC for posting to the BMF. Also included are generated postings reported on the SC Recap for post journalization.

  2. All MF postings, both campus-processed and MF-generated, are considered to be in process until actually posted to the taxpayer account, and a change in the MF account status is reflected.

  3. While the RACRs are used to ensure the balance in this account, no actual external subsidiary record is maintained. Data input may be updated by electronic transmission.

3.17.64.14.1.3  (09-01-2011)
Account 4130 ECC Unpostable Documents-BMF
(Real Account, DR/CR Normal Balance)

  1. This liability account will be used to record and control pre-journalized debits and credits returned by ECC as unpostable to the BMF.

  2. Items in this account failed to meet all the BMF validity checks, or failed to match on entity information. Items in Account 4130 will be reviewed, corrected, and resubmitted to MF processing, and reestablished on the SCCF.

  3. The magnetic tape file of unposted transactions is the external subsidiary record.

3.17.64.14.1.4  (09-01-2011)
Account 4210 ECC Suspense for the MF-IMF
(Real Account, DR/CR Normal Balance)

  1. This liability account records both debits and credits at, or sent to, ECC for posting to the IMF. Also included are generated postings reported on the SC Recap for post journalization.

  2. All MF postings, both campus-processed and MF-generated, are considered to be in process until actually posted to the taxpayer account module, and a change in the MF account status is reflected.

  3. While the RACRs are used to ensure the balance in this account, no actual external subsidiary record is maintained.

  4. Data input may be updated by electronic transmission.

3.17.64.14.1.5  (09-01-2011)
Account 4215 ECC Suspense for CADE
(Real Account, DR/CR Normal Balance)

  1. This liability account previously recorded both debits and credits at, or sent to, ECC for posting to CADE. Also included are generated postings reported on the SC Recap for post- journalization.

  2. All CADE postings before cycle 201125, both campus-processed and MF-generated, were considered to be in process until actually posted to the taxpayer account module, and a change in the MF account status is reflected.

  3. While the RACRs are used to ensure the balance in this account, no actual external subsidiary record is maintained.

  4. Data input may be updated by electronic transmission.

3.17.64.14.1.6  (09-01-2011)
Account 4217 ECC MFT 30 to MFT 29 for CADE
(Real Account, CR Normal Balance)

  1. This liability account was set up to record credits offset at ECC from MFT 30 to MFT 29. These postings are reported on the SC Recap for post journalization.

  2. On the SC Recap it shows the offset credit transferred to MFT 29 (debit Account 4210 X credit Account 4217), while another line reflects the credit transferred from IMF (debit Account 4217 X credit Account 4210).

  3. Data input is updated by electronic transmission.

3.17.64.14.1.7  (09-01-2011)
Account 4230 ECC Unpostable Documents-IMF
(Real Account, DR/CR Normal Balance)

  1. This liability account will be used to record and control pre-journalized debit and credit transactions returned by ECC as unpostable to the IMF. Items in this account failed to meet all the validity checks, or failed to match on entity information.

  2. Items in Account 4230 will be reviewed, corrected, and re-submitted to the MF processing, or nullified and re-established on the SCCF.

  3. The magnetic tape file of unposted transactions is the external subsidiary record.

3.17.64.14.1.8  (09-01-2011)
Account 4254 MFT 30 to MFT 29
(Real Account, CR Normal Balance)

  1. This liability account records credits offset at ECC from MFT 30 to MFT 29. These postings are reported on the SC Recap for post journalization.

  2. Line 23 on the SC Recap shows the offset credit transferred to MFT 29 (debit Account 4210 X credit Account 4254), while Line 106 reflects the credit transferred from IMF (debit Account 4254 X credit Account 4210).

  3. Data input is updated by electronic transmission.

3.17.64.14.2  (09-01-2011)
ECC Application Tapes to ECC
(Mainline and IDRS)

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

    1. GMF 1545

    2. SCF 1152

    3. SCF 1151

    4. SCF 1340

    5. GUF 5342

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

3.17.64.14.3  (09-01-2011)
Corrected Unpostable Transactions

  1. One of the following corrected unpostable controls may be received: GMF 1545 or GUF 5340.

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

3.17.64.14.4  (09-01-2011)
Applications From Unpostables

  1. Documents which are unable to post at ECC come back to the campus as unpostable. Resolution codes 1, 2, and 8 on GUF 5340 nullify the unpostables. Code 1 indicates the record goes back to suspense status, code 2 indicates a voided record, and code 8 indicates a record going to Rejects.

  2. Documents may be perfected and re-input, renumbered to another file or tax class, transferred to another campus, or transferred with same DLN to unidentified, deposit fund, or general ledger accounts such as Account 6800, Excess Collections, or Account 1510, Other Receivables.

  3. Receive Unpostable Control Report (GUF 5340). Entries will be made from listings and documents. For amounts being put back in process, entries will be made from the total nullified unpostables line. Journalization will be from Unpostable Accounts (4130 BMF and/or, 4230 IMF) to "In-Process" Accounts (4120 BMF and/or 4220 IMF). Subsequent reclassification may be required.

  4. Credit entries to deposit fund accounts will be made from the individual documents. Documents must have a Doc-Id. Journalize from Unpostable Accounts 4130 or 4230 to Deposit Fund Accounts (4710 OIC, 4720 Sale of Seized Property, or 4730 Miscellaneous DF). It will be necessary to reclassify. Decrease Revenue Receipts Account 21XX (credit) and increase Deposit Funds Account 7002 (debit).

  5. Data from GUF 5340 will automatically journal via the RACS 35 process. This run includes the new, nullified, corrected, and reclassified unpostable transactions received from and sent to ECC for MF. If electronic data input is incorrect, a new transmission can be processed, or the data can be input manually from the hard copy. This manual process can be accomplished through the Accounting Application main menu. Transcribe or stamp journal identification number on control listings and documents, as required for audit trail.

3.17.64.14.5  (09-01-2011)
New Unpostables

  1. Source documents received when new unpostables are added to the file are:

    1. IMF Unpostable Controls - Listing number GUF 5340

    2. IMF Revenue Receipt Control Sheet (RRCS) - Listing number SCF 1340

    3. BMF Unpostable Controls - Listing number GUF 5340

    4. BMF Revenue Receipts control Sheet (RRCS) - Listing number SCF 1340

  2. Verify that unpostable controls balance with RRCS posting block proof balances with unpostable master control. Entries will be made from unpostable controls total items and amount. Ensure cycle number is available on listing. Net credit on unpostable controls will be an increase (credits ECC Unpostable Documents Accounts - IMF 4230 and BMF 4130). Net debit on unpostable controls will be a decrease.

  3. New unpostables as well as nullified, reclassified, and corrected unpostables are journalized from the GUF 5340 by tape processing. RAC 35 is the program which posts the data in a batch environment rather than entering the data manually. RACS 35R is the program that reverses all posting done by RAC 35. Windows will serve as backup in the event of a tape failure. Transcribe or stamp journal identification number on unpostable listings for audit trail.

3.17.64.14.6  (09-01-2011)
ECC Deletes

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

3.17.64.15  (09-01-2011)
Electronic Federal Tax Payment System (EFTPS)
(Ogden Only)

  1. The Electronic Federal Tax Payment System (EFTPS) allows individuals and businesses to make electronic deposits and payments for federal taxes such as Employment Taxes, Excise Taxes, Corporate Income Taxes and Form 1040 Estimated taxes.

3.17.64.15.1  (09-01-2011)
General Ledger Accounts for EFTPS

  1. The following accounts are associated with EFTPS.

3.17.64.15.1.1  (09-01-2011)
Account 4125 EFTPS/FPLP Suspense for MF BMF
(Real Account, DR/CR Normal Balance)
(Ogden Only)

  1. This liability account is used to record all BMF electronic debits and credits that are in process in the campus for posting to the BMF. Upon receipt in the campus, amounts will be entered in Account 4125, and will remain while processing is being accomplished. When processing is complete, and items are on magnetic tape for shipment to ECC, they will be removed from this account.

  2. This account is supported by the EPCF. All items placed in this account must be recorded in detail on the EPCF.

3.17.64.15.1.2  (09-01-2011)
Account 4225 EFTPS/FPLP Suspense for MF IMF
(Real Account, DR/CR Normal Balance)
(Ogden Only)

  1. This liability account is used to record all IMF electronic debits and credits that are in process in the campus for posting to the IMF. Upon receipt in the campus, amounts will be entered in Account 4225, and will remain while processing is being accomplished. When processing is complete, and items are on magnetic tape for shipment to ECC, they will be removed from this account.

  2. This account is supported by the EPCF. All items placed in this account must be recorded in detail on the EPCF.

3.17.64.15.1.3  (09-01-2011)
Account 4425 EFTPS/FPLP Suspense for NMF
(Real Account, DR/CR Normal Balance)
(Ogden Only)

  1. This liability account is a suspense account for NMF, and will be used to record control items received electronically by the campus for processing to the NMF accounts. The amounts of debits and credits will be cleared from this account upon application of the items to the NMF account.

3.17.64.15.1.4  (09-01-2011)
Account 4765 EFTPS/FPLP Misc. Suspense
(Real Account, DR/CR Normal Balance)
(Ogden Only)

  1. This liability account is used to hold and control special fund amounts that have been received electronically.

  2. The following EFTPS items can be included in Account 4765:

    1. Payments for non-revenue accounts, such as user fees, conscience fund, and public debt

    2. Payments received with an invalid tax type. These are reclassified when the tax type is corrected.

    3. Payments or reversals determined to be unidentified by the EFTPS financial agent. The financial agent must send an offsetting transaction.

    4. Batches that are rejected by the EFTPS load and validate program. The amount will be reclassified when the financial agent submits a processable batch.

3.17.64.15.1.5  (09-01-2011)
Account 7001 Unclassified EFTPS/FPLP
(Nominal Account, DR Normal Balance)
(TAS 20F3820)
(Ogden Only)

  1. This receipt account records the total unclassified EFTPS money amounts received but not yet classified to tax class.

3.17.64.15.2  (09-01-2011)
EFTPS Deposit Ticket Journal (Ogden Only)
(RRACS Window 210)

  1. Each deposit ticket sent by EFTPS to RRACS is based on the classification provided by the financial agent.

  2. Use the DT/DV Summary Report as an index to make sure that all deposit tickets have been received and journalized, and to validate the journal totals.

  3. The automated journal number is 110. If a manual journal is required, journal using Window 210, which can be found under the RRACS Main Menu under Deposit. Use a printed copy of the EFTPS deposit ticket to support each journal. The printed deposit ticket lists all of the batch numbers that have been included on the deposit.

    1. Debit the appropriate tax class in the Account 2100 series or tax class 9, revenue suspense.

    2. Credit one or more of the EFTPS suspense accounts.

    Account Number Account Name
    4125 EFTPS Suspense for Master File - BMF
    4225 EFTPS Suspense for Master File - IMF
    4425 EFTPS Suspense for NMF
    4765 EFTPS Miscellaneous Suspense
  4. Deposit tickets are sorted by settlement date in EFTPS.

  5. The deposit ticket does not identify user fees and non-revenue items. Non-revenue deposit items are classified into Account 4765, then reclassified.

  6. Deposit tickets from the Federal Payment Levy Program (FPLP) are journalized to different accounts because the money is received through IPAC .

    1. When the money is received on IPAC, a manual journal is prepared to debit Account 2910 and credit Account 4765.

    2. The EFTPS journal 114 debits Account 4765 and credits Account 2910, and debits the Account 21XX tax classes and credits the appropriate EFTPS suspense accounts.

    3. RRACS is programmed to recognize the FPLP deposit ticket journal record by the record code 5. Normal EFTPS deposit tickets contain record code 1.

3.17.64.15.3  (09-01-2011)
EFTPS Debit Voucher Journal (Ogden Only)
(RRACS Window 221)

  1. Each EFTPS debit voucher contains tax classification information provided by the financial agent.

  2. Use the DT/DV Summary Report as an index to make sure that all debit vouchers have been received and journalized, and to validate the journal totals.

  3. Use the printed debit voucher as the source for journalization.

  4. The automated journal number is 111. If a manual journal is required, journal using Window 221 to debit the appropriate suspense account and credit the Account 21XX tax class.

  5. For FPLP debit vouchers, a manual journal from the IPAC record debits Account 4765 and credits Account 2910. Then the EFTPS 114 journal debits Account 2910 and credits Account 4765, and debits the appropriate EFTPS suspense accounts and credits the Account 21XX tax classes. The journal record from EFTPS is identified by record code 6.

3.17.64.15.4  (09-01-2011)
EFTPS Deposit Reclassification Journal (Ogden Only)
(RRACS Automated Window 112)

  1. The source document for the automated reclassification journal number 112 is the EFTPS reclassification summary. Any debit or credit transactions that can be reclassified by the EFTPS system is included on the EFTPS Reclassification summary, including the following types of transactions:

    1. Any payment or debit record that was mis-classified by the financial agent.

    2. Any record that was changed to a different tax class or MF by error correction.

    3. Any record that was changed to a different tax class or MF as a result of an auto correction during load and validate.

    4. Batches that have been rejected during EFTPS load and validate. The payments are reclassified to tax class 9, MF 7, until a corrected batch is re-submitted. Because the reclassification program is unable to determine the original MF, the EFTPS reclassification summary will show rejected batches as coming from BMF.

    5. Special fund payments that were classified as tax class 9, revenue suspense, by the financial agent, but were assigned tax type codes that EFTPS is able to further classify. EFTPS assigns a pseudo tax class, which is printed on the reclassification list. These include:

    Tax Type Pseudo Tax Class Description
    68770 P Photocopy Fees
    01210 C Conscience Fund
    54321 O Installment Fee New
    54323 R Installment Fee REI
    54324 E OIC User Fee

  2. Any other reclassification must be completed with a manual journal when the items are deleted from EFTPS suspense.

  3. The EFTPS Reclassification summary is divided into two parts:

    1. Part 1 is the tax class reclassification containing the net change in tax classes, as identified by a comparison between the tax type codes and the deposit ticket, and by changes in tax types made by error correction or auto correction.

    2. Part 2 is the MF reclassification based on a comparison between the tax type codes and the MF in the batch header, plus MF changes created by auto correction and error correction.

    3. Both parts include a net change column that can easily be used to create a reclassification journal.

  4. The EFTPS reclassification list includes detailed information of the items that are being reclassified.

3.17.64.15.5  (09-01-2011)
EFTPS TEP Journal (Ogden Only)

  1. A TEP journal record is prepared for each MF as EFTPS records are sent to ECC.

  2. The automated journal number is 113. If a manual journal is required, use the EFTPS daily trans release summary to prepare journal 417 for BMF, and 418 for IMF.

  3. For the normal credit balance, debit the ECC suspense account and credit the EFTPS suspense account.

    1. For BMF, debit Account 4110 and credit Account 4125

    2. For IMF, debit Account 4210 and credit Account 4225

  4. If the report has a debit balance, debit and credit accounts are reversed.

3.17.64.16  (09-01-2011)
Electronic Transmissions

  1. The following general ledger accounts are updated by electronic transmission.

3.17.64.16.1  (09-01-2011)
Account 4510 Pre-payment Credits BMF
(Real Account, CR Normal Balance)

  1. Recorded in this liability account is the sum total of all those BMF taxpayer modules which are in credit-balance status. Modules are normally in credit-balance status due to pre-payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

  2. For the purpose of this account, the term pre-payment credits is defined to include all those credit amounts in a module for which there is no assessment or debit amount equal to or greater than the credit.

  3. No external subsidiary record is used.

  4. The account will be updated by electronic transmission.

3.17.64.16.2  (09-01-2011)
Account 4520 Pre-payment Credits IMF
(Real Account, CR Normal Balance)

  1. Recorded in this liability account is the sum total of all those IMF taxpayer modules which are in credit-balance status. Modules are normally in credit-balance status due to pre-payments by estimated tax payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

  2. For the purpose of this account, the term pre-payment credits is defined to include all those credit amounts in a module for which there is no assessment or debit amount equal to or greater than the credit.

  3. No external subsidiary record is used.

  4. The account will be updated by electronic transmission.

3.17.64.16.3  (09-01-2011)
Account 4521 Pre-payment Credit - Non Tax
(Real Account, CR Normal Balance)

  1. This account represents the sum total of non-tax accounts with credit balances on the MF. Included in this account are individual and business accounts with an outstanding balance due.

  2. No external subsidiary record is used.

  3. The account will be updated by electronic transmission.

3.17.64.16.4  (09-01-2011)
Account 4950 IMF Unallowable Deductions
(Real Account, DR/CR Normal Balance)

  1. This liability account will record debits to taxpayers' IMF accounts, to prevent excess refunds when it has been determined by Exam that an unallowable deduction is claimed on the return. This posts as a debit to the taxpayer's account (TC 576), and a credit to Account 4950.

  2. Reversal of this debit will be recorded, after the correct tax liability is determined by audit. The reversal transaction is a credit to the taxpayer's account (TC 577) and a debit to Account 4950.

  3. No visible external subsidiary record exists, however, those taxpayer accounts on the IMF marked with the unallowable deductions transaction code make up the balance of this account.

  4. The account will be updated by electronic transmission.

3.17.64.17  (10-03-2012)
Erroneous Refunds

  1. Erroneous refunds resulting from administrative errors such as, misapplied payments, issuing duplicate refunds, direct deposit errors, and incorrect tax adjustments are classified as Category "D" Erroneous Refunds and are maintained in the Erroneous Refund function. For additional information on Category "D" refunds, see IRM 21.4.5.4.5, Overview of Category D Erroneous Refunds.

  2. The erroneous refunds are controlled in four general ledger accounts. Account 1530, Court Case Erroneous Refund, Account 1535, Criminal Investigation (CI) Court Ordered Restitution Erroneous Refund, Account 1540, Non-Court case Erroneous Refund and Account 1545, Identity Theft Erroneous Refunds.

  3. Each case is controlled with a unique document number on Form 3809. This document number allows for the tracking of an individual case from its inception to completion. It is a requirement to use the following format for the Doc-Id (case control number), XXXX-XX-XXXX, (which consists of calendar year, current ECC-MEM cycle of the erroneous refund, and sequence number), on all erroneous refunds in Accounts 1530, 1535 and 1540. For Identity Theft Erroneous Refunds in Account 1545, the Doc Id format will be 15 digits consisting of the DLN of the Form 813 (without sequence number) plus two digit year plus total volume on Form 813, e.g., 892482619451275. For further RRACS instructions for processing Identity Theft Erroneous Refunds see IRM 3.17.64.17.5, Identity Theft Erroneous Refund New Case Processing and IRM 3.17.64.17.9, Identity Theft Erroneous Refund Cleared.

    Note:

    Any campus receiving new erroneous refunds from a consolidated campus, must include the first letter from that site at the end of the sequence number to identify the initiating campus for 1530, 1535 and 1540 accounts.

  4. The erroneous refund RRACS windows 480, 481, 485 and 490 provide for the individual control and journalization of erroneous refund case files, after a determination is made as to the type of recovery necessary.

3.17.64.17.1  (10-25-2012)
Erroneous Refund Report
(RRACS Report 131)

  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

  2. The Erroneous Refund report helps the Erroneous Refund function track erroneous refunds by Doc-Id. This report lists erroneous refunds by Accounts 1530 (court cases), 1535 (CI Restitution court cases) and 1540 (non-court cases). Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount, and current balance.

  3. A copy of the RRACS Erroneous Refund Report 131 should be given monthly to the Erroneous Refund Coordinator in the Accounting Operation.

3.17.64.17.2  (10-03-2012)
Identity Theft Erroneous Refunds Inventory Report
(RRACS Report 155)

  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

  2. The Identity Theft Erroneous Refund report helps the Erroneous Refund function track ID Theft erroneous refunds by Doc-Id. This report lists erroneous refunds in Account 1545, ID Theft Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount, and current balance.

  3. A copy of the RRACS Identity Theft Erroneous Refund Report 155 should be given monthly to the Erroneous Refund Coordinator in the Accounting Operation.

3.17.64.17.3  (09-01-2011)
General Ledger Accounts for Erroneous Refunds

  1. The following general ledger accounts are used for processing erroneous refunds.

3.17.64.17.3.1  (09-01-2011)
Account 1530 Court Case Erroneous Refund
(Real Account, DR Normal Balance)

  1. This receivable account will be used to record erroneous refund receivables that result in a court case. Account 1530 will be supported by copies of bills, IDRS Letter 510C, court documents, and TIGTA reports, debit vouchers, or other documents showing the name of each debtor, amounts receivable, and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

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

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

  4. The external subsidiary record for this account is the file of paper documents described above. For maintaining cases in this account refer to IRM 3.17.80.1.1.1, Accounts 1530, Employee Fraud and/or Civil Suit Erroneous Refund Court Cases, and Account 1540, Non-Court Case Erroneous Refunds.

3.17.64.17.3.2  (09-01-2011)
Account 1535 CI Court Ordered Restitution Erroneous Refund
(Real Account, DR Normal Balance)
(Kansas City Only)

  1. This receivable account will be used to record erroneous refund receivables that result in a criminal investigation court case. Account 1535 will be supported by copies of Form 3809 and a TXMOD print reflecting the erroneous refund or a copy of the payment voucher received from Criminal Investigation (CI) in Ogden. CI will maintain the original case file.

  2. The external subsidiary record for this account is the Form 3809 described above.

3.17.64.17.3.3  (09-01-2011)
Account 1540 Non-Court Case Erroneous Refund
(Real Account, DR Normal Balance)

  1. This receivable account will be used to record erroneous refund receivables that are NOT court cases. This account represents erroneous refund receivables that have NOT been collected, resulted in a court case, assessed, or been determined uncollectible. Account 1540 will be supported by copies of bills, IDRS Letter 510C, debit vouchers, or other documents showing the name of each debtor, amounts receivable, and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

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

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

  4. Refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations for write-off tolerances.

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

3.17.64.17.3.4  (10-03-2012)
Account 1545 Identity Theft Erroneous Refunds
(Real Account, DR Normal Balance)

  1. This receivable account will be used to record identity theft erroneous refunds and was effective June 25, 2012. This account represents identity theft erroneous refund receivables which are uncollectible. Account 1545 will be supported by Form 3809. This account is not under Director's Accountability.

  2. When setting up the case on RRACS, use the journal date for the prepare date.

  3. Refer to IRM 3.17.243 Miscellaneous Accounting for write-off procedures.

  4. The external subsidiary record for this account is the Form 3809.


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