Electronic payments are initiated through computers, magnetic tape, plastic cards, or telephones.

The Financial Management Service (FMS) and the Federal Reserve Bank (FRB), are directly involved in two types of EFT services: Automated Clearing House (ACH), and Wire Transfers (FEDWIRE).

ACH primarily functions through the FRB. Rules, procedures, and programs were developed by the Regional ACH Association, National Automated Clearing House Association (NACHA).

ACH payment files received in a RFC on any business day allows for payee accounts to be credited the next business day. ACH payment processing can accept payment amounts up to $99 million.

Known as the Federal Reserve Communications Systems (FRCS), wire transfers are executed through the FEDWIRE network.

The Financial Management Service uses FEDWIRE extensively to disburse and collect funds. FMS uses the Treasury FEDLINE to transmit funds through the FEDWIRE System.

Treasury FEDLINE is an EFT system that has a direct line to the FRCS through the Federal Reserve Bank of New York (FRBNY).

Wire transfer payments must be typed on a SF 1166, Voucher and Schedule of Payments, and routed to the designated RFC:

Payment amounts are limited to $999 million and are credited to payee accounts on the same business day.

Treasury checks are drawn on the U.S. Government and issued from a refund appropriation or other Treasury account symbol payment voucher schedule submitted to an FMS Regional Financial Center (RFC). Treasury tax refund and other check payments are certified by SF 1166 or through the Secure Payment System (SPS). The Secure Payment System (SPS) is an automated version of SF 1166 and prints of the SPS screen serve as supporting documentation for check-issue media submitted to the RFC's. The refund schedule is created and matched to tape reel number or other transmission record, check volume, amount, and date certified. Individual payment detail data for check inscription, are included on the file. All refund disbursement voucher schedules are certified by designated "Authorized Certifying Officers" of the agency.

Form 3753, Manual Refund Posting Vouchers, are processed through the IRS Integrated Submission and Remittance Processing system (ISRP) using Document Code 45 document locator number (DLN) for posting to the Master File. The SF 1166 or SPS Refund Schedule is sent to the RFC for issuance of the refund.

Form 5792, Request for IDRS Generated Refund (IGR), are input via Integrated Data Retrieval System (IDRS) (CC RFUND) and transmitted to the RFC. Files are sent simultaneously to the Enterprise Computing Center at Martinsburg (ECC-MTB) for posting TC 840 to the Master File.

Miscellaneous payments such as Photocopy Fee (Form 4506) reimbursements, are certified by IRS and sent to the RFC to issue the checks. The Photocopy Fee checks do not carry the Master File Posting TC 840 since they are not tax refunds.

IRM 1.11.3, Policy Statements

IRM 2.4.19, Command Code REQ77, FRM77 and FRM7A

IRM 2.4.20, IDRS Command Code RFUND and REFAP

IRM 3.0.167, Losses and Shortages

IRM 3.0.257, Systems Accountability Review

IRM 3.11.10, Revenue Receipts

IRM 3.13.62, Media Transport and Control

IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF)

IRM 3.17.20, The Refund Intercept Program

IRM 3.17.30, SC Data Controls

IRM 3.17.63, Redesign Revenue Accounting Control System

IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations

IRM 3.17.243, Miscellaneous Accounting

IRM 3.24.7, Delinquent Accounts

IRM 13.1, Taxpayer Advocate Case Procedures

IRM 11.3, Disclosure Of Official Information

IRM 20.1, Penalty Handbook

IRM 20.2, Interest

IRM 21.1, Accounts Management and Compliance Services Operations

IRM 21.2, Systems and Research Programs

IRM 21.3, Taxpayer Contacts

IRM 21.4, Refund Inquiries

IRM 21.4.4, Manual Refunds

IRM 21.4.5, Erroneous Refunds

IRM 21.4.6, Refund Offset

IRM 21.5, Account Resolution

IRM 21.6, Individual Tax Returns

IRM 21.7, Business Tax Return and Non-Master File Accounts

IRM 21.10, Quality Assurance

IRM 25.6, Statute of Limitations

Recertification - Effective October 26, 1986, the Department of the Treasury (FMS) redelegated, to administrative agencies full responsibility for certifying replacement payments to payees who claim non-receipt, lost, stolen, mutilated or destroyed checks. This procedure is known as Recertification. IRS authorizes the re-issuance of a check under Recertification.

Settlement Check - A check issued by FMS Check Claims Branch prior to October 26, 1986, and more recently in 2002 and 2003 when non-receipt claims were determined to be forged. Settlement checks are issued by FMS from the Check Forgery Insurance Fund to replace an original check cashed by an individual other than the taxpayer, the payee. The check number and symbol of the settlement check are different from those on the original check. The recent settlement checks overlay the original check issue symbol and serial requiring in-depth research by FMS for resolving cases.

Substitute Check - A check issued by Check Claims Group (CCG) to replace an original check still outstanding. Substitute checks were also referred to as duplicate checks and were issued from the Washington RFC. The substitute check has the same check number and symbol of the original. Substitute checks are not issued under Recertification.

Recertified Check - A check certified for reissuance by IRS, after October 26, 1986, to replace an original check still outstanding. The result of a non-receipt claim submitted by tape input or SF 1184, Unavailable Check Cancellation.

Altered Check - A check that is changed (defaced) before cashing (for example, the refund amount printed on the check is changed).

Unavailable Check Cancellation Credit - Credit returned to the ALC from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9."

Available Check Cancellation Credit (ACC)- Credit(s) returned to the Service from an intercepted refund check (Reason for Return Code "1" ), undelivered refund check (Reason for Return Code "2" ) or other reasons not identified above (Reason for Return Code "3" ).

Unavailable Check Cancellation (UCC)- credits are returned to the Service via SF1098 cancellations from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9"

U.S. Treasury checks (including all IRS tax refund checks) are negotiable for one year from the date of issuance or one year from the effective date of the new law, for those checks issued on or after October 1, 1989. FMS returns LP credits to the agency that authorized issuance of the check and is similar to returning credits on check claims when the check is outstanding (Status 32). No credits are returned on canceled checks issued before October 1, 1989.

Claims "on account of a Treasury check" must be presented to IRS for tax refund checks within one year from the date of issuance (or one year from the effective date of the new law) for checks issued before the law took effect. Different procedures apply to these claims. FMS involvement is much more limited than claims made within 1 year.

Reclamation actions by FMS through the banking system to recover funds on forged checks are limited to 1 year (or 1 1/2 years if a timely claim, as described in (2), above, is filed). When FMS cannot recover funds, a credit will not be returned to IRS, even though settlement was authorized. Procedures for handling this situation are included in IRM 21.4, Refund Inquiries.

Limited Payability Cancellation (LPC) Credits are transmitted monthly, provided that an LPC occurred. Credits originate from FMS in Hyattsville to ECC-MTB. Cancellation data generates TC 740 at Master File via SF1081 TRACS with block and serial number 66666 and set an "S" Freeze.

Reclamation (REC) Credits are transmitted monthly, provided an UCC occurred. Credits originate from FMS in Hyattsville to Enterprise Computing Center (ECC) - Martinsburg. Generates TC 841 at Master File via SF1081 TRACS with block and serial 88000 and are the result of a non-receipt claim which secured recovery of funds through the banking system on a forged check. When FMS cannot recover funds, no credit will be returned to IRS, even though FMS authorizes settlement with the taxpayer.

Funds are recovered by FMS from the financial institution when a Treasury check is paid over a forged endorsement.

Credits are returned to IRS Master File via the Treasury Receivable and Accounting Collection System (TRACS) SF1081 process.

All shipment of tax returns and return information between Submission Processing, Accounts Management, Compliance Services Operations, the IRS National Office, IRS field areas and territories, the Enterprise Computing Centers at Detroit (ECC-DET), at Martinsburg (ECC-MTB), and ECC at Memphis (ECC-MEM) Computing Centers, Financial Management Service, Regional Financial Centers or other government agencies and jurisdictions are documented, accomplished and accounted for as required by IRM 1.4.6, Resource Guide for Managers.

After manual SF 1166 (Voucher and Schedule of Payments) are signed, the Certifying Officer or his designee, will place the forms in an envelope addressed to the RFC, immediately seal and hand carry to the secured mail area.

Erasable ballpoint pens cannot be used to sign manual SF 1166.

Mail items to the Regional Financial Centers in accordance with IRM 3.13.62., Media Transport and Control.

Submission Processing Director's (and/or other supervisory levels) will ensure the integrity of signatures by establishing procedures for signing Form 3753/Form 5792 and appointments/terminations of designated Certifying Officers.

Refer to IRM 3.17.79.1.8, Designating Certifying Officers (CO) and CO Review.

Employees authorized to approve a request for manual refund must not be the same employee authorized to adjust and/or initiate a request for manual refund on any one refund transaction for a taxpayer's account.

A manual refund authorized official or Certifying Officer, must not have the following sensitive command codes in their IDRS command code profiles: ADC24, ADC34, ADC48, ADD24, ADD48, BNCHG, INCHG, ADJ54, DRT24, FRM34, DRT48, AMCLS, URAPL, URREF, XSAPL, XSREF, RFUND, and REFAP, this list is not all-inclusive. The taxpayer identification number (TIN) of the authorizing official must be provided to the Accounting Manual Refund function to verify the above information. TIN information must be provided even when the authorized official does not have IDRS access.

The internal control separation of duties established by Government Accountability Office (GAO) to protect the integrity of government funds. This IDRS Security review is not a new requirement. This automated security review, Automated Command Code Access Control (ACCAC) reduces potential for financial mismanagement. The ACCAC database is maintained by Information Technology (IT), CyberSecurity Division.

Accounting Operations Unit Security Representatives (USR) will perform IDRS actions per the IRM 10.8.34, IDRS Security Controls. See IRM Exhibit 10.8.34–5, Sensitive Command Code Combinations. ACCAC provides ability to automatically activate, deactivate or bypass Command Code profiles and to limit access for IDRS security profiles.
The USR or designated management official will perform quarterly reviews of the Restricted Command Code Access List. The review must be documented, include copy of the restriction list of authorized officials from IDRS (do not use external lists for this review), date and signature or initials of the person performing the review. This documentation must be retained in a file for the fiscal year the memos are valid. Upon completion of the review, forward a memo or an E-mail to the Headquarter Analyst indicating the review was performed. Communication to the analyst is due the second Friday after the end of the quarter. Maintain a copy in the GAO audit file. Include in the memo or E-mail actions taken, i.e., removed two authorizers due to invalid memo.

The ACCAC was developed by IDRS Security with the affected business operating divisions to initiate a standard procedure to ensure that restricted combination sensitive command codes were not in the employee's profiles. Enhancements to eliminate the required TIN and utilize the employee's SEID (Standard Employee Identifier) will be introduced in the future.

IRM 10.8.34, IDRS Security Controls has been updated to incorporate the requirements for management officials to provide personal information to the Unit Security Representative (USR). The system is designed to update the Restricted Command Code Access Lists for each Center. Employees must protect the integrity of all personal information. Unit Security Representatives are designated to key enter and remove restricted command code access data into and from the database. Standard information and IDRS Security review actions by Unit Security Representatives are found in IRM 10.8.34-5, Sensitive Command Code Combinations.

The Manual Refund Unit continues to maintain and secure original signatures of officials authorized to approve refund requests per IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds.

These procedures include instructions for FMS Form 2958, Delegation of Authority. The purpose of this form is to establish the name and title of the individual that is the head of the Federal Agency, and to obtain signature samples from that individual.

Automated Federal Agency enrollment requires Certifying Officers to file and maintain a valid FMS Standard Form 210, Signature/Designation for Certifying Officer (SF 210) signed by their Delegating Official who must have a current FMS Form 2958 on file. A delay in the receipt of this form (a transmittal memorandum on the appropriate letterhead is acceptable) by FMS will cause a delay in the issuance of refunds. The purpose of SF 210 is to designate a certifying officer that will sign and have access to certify authorizations.

See Exhibit 3.17.79-6 for a sample Form 2958.

ECC-MTB designates Certifying Officers and certifies refund schedules (via SPS) for generated refunds (TC 846).

Submission Processing Center Directors designate Certifying Officers to certify manual refunds (TC 840). FMS recommends designated Certifying Officers be management level or equivalent within an accounting unit or data processing organization. The supporting documents for these disbursements are SF 1166, Voucher and Schedule of Payments, or SPS screen print, Form 3753 Form 5792 and related credit (Form 3809, Form 3245) or file source documentation (e.g., cross reference).

Delegations of Authority designating Certifying Officers are submitted to OS:CFO:I:PBA, Policy and Business Analysis, for approval from Submission Processing Centers and ECC.

See IRM 1.2.40.34, Delegation Order 1-41 (formerly DO-28 REV. 11), Designation of Officers and Employees as Authorized Certifying Officers.

When personnel changes occur, a new, original FMS SF 210 for each Certifying Officer, must be submitted to IRS Headquarters Chief Financial Officer, Policy and Business Analysis. All FMS SF 210 must be submitted timely to ensure there are no delays processing refund schedules at the beginning of the new Fiscal Year. FMS will return a validation sticker for all newly assigned and renewed SF(s) 210. Review Center file monthly and take action if necessary to ensure FMS SF(s) 210 are valid.

Section IV, Delegator Signature, use the following: Typed Name: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ; Title: Associate Chief Financial Officer; Agency: Department of the Treasury; Bureau: Internal Revenue Service; Division; Chief Financial Officer OS:CFO:I:PBA.

Section VI, Return Address of Delegator, should be the mailing address and telephone number of the respective Submission Processing (SP) Center Director, Manual Refund Unit, or the area most knowledgeable about the SF 210 and Form 2958 delegation requirement. Local SP Center preference: may use the return address of the Planning and Analysis or Director's Staff.

All Form 2958 and FMS SF 210(s) will be completed using black ink and sent in their entirety to:

CFO, Director, Policy and Business Analysis, maintains all IRS records of Certifying Officer delegations and FMS Standard Form (SF) 210. These documents must be renewed or revoked every two (2) years. Designees are notified by FMS directly when Certifying Officer delegations are due to expire. All new delegations (Form 2958), SF 210 and revocations are submitted through the Office of the CFO (see above).

FMS SF 210 are forwarded from the CFO to Financial Management Service, Chief Disbursing Officer. SF 210 are prepared in duplicate and used for submitting assignments or revocations of each Certifying Officer. The Submission Processing Center address is shown on the transmittal form.

CFO and FMS signs, dates and returns one copy of the form to the submitting agency, indicating the FMS SF 210 was received and entered into FMS's file (either current or revoked file). Submit one transmittal form, noting "See attached list," accompanied by a list of Certifying Officers names and the ALCs for which they are certifying payments.

FMS SF 210 must bear the Certifying Officer's original signature. The SF 210 must be signed in black or blue-black nonerasable ink.

FMS will reject the SF 210 if submitted with facsimile signatures, evidence of corrections, erasures or alterations.

FMS will approve the form by returning a validated copy of the form. Allow four weeks for FMS to return validated copy to Center and if not received within this period contact FMS. Maintain this copy in a file accessible to persons performing monthly/yearly reviews.

The Certifying Officer must make monthly inspections to ensure processed refund vouchers conform to prescribed requirements. The CO must perform an unannounced review of processed Master File Form 3753 refunds. CO will verify that Accounting Manual Refund Unit included required history actions on the taxpayer account (including refund schedule number). See Figure 3.17.79–37.

The Certifying Officer will review a sample of source documents and verify that refund vouchers are complete, accurate, and that procedures are being followed.

The Certifying Officer will maintain a record of reviews. It is recommended that a log be kept in addition to the reviews.

Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after Center input. Transactions will be viewable on IDRS command codes the third day after Center input.

Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and may result in the account type changing to Weekly.

Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

Use of the Posting Delay Code on transactions will result in the transaction being held until the weekly processing on Thursday. When the transaction is processed on Thursday and the Posting Delay Code contains a value other than zero, the transaction will continue to resequence for the number of cycles equal to the value.
Example: A transaction input with a Posting Delay Code of 1 will be processed on Thursday, and will resequence until the following weekly processing day (the following Thursday).

Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

Transactions will be viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

01 = Friday

02 = Monday

03 = Tuesday

04 = Wednesday

05 = Thursday

A refund hold will be applied when through Master File processing of the account, the account meets Priority Refund Transcript criteria (Refund, Refund-E, Refund-S, $1M, and $10M). The accounts will reflect a TC 971 AC 805 and a TC 570 with blocking series “55555” indicating the refund hold has been applied. The hold will systemically expire 4 business days after the TC 971 AC 805 date.

A refund hold will be applied when through Master File processing of the account, the account meets criteria to issue CP (Computer Paragraph) 12, 16, 21, or 24. These accounts will be processed during the weekly processing on Thursday. The accounts will reflect a TC 971 AC 804 and a C- freeze. The hold will systemically expire 7 calendar days after the TC 971 AC 804 date.

BMF refunds for each Center (Excluding D.O. 66 and 98).

IMF refunds for each Center (Excluding D.O. 66, 97 and 98).

BMF International refunds for Districts 66 and 98.

IMF International refunds for Districts 66, 97 and 98.

IMF refund/rebate/EIC data for each Center (excluding D.O. 66, 97 and 98).

BMF refund/rebate data for each Center (excluding D.O. 66 and 98).

IMF direct deposit refunds for each Center (excluding D.O. 66, 97 and 98).

BMF direct deposit refunds for International for Districts 66 and 98.

BMF accelerated refunds for each Center (excluding Districts 66 and 98.

BMF accelerated refunds for International for Districts 66 and 98).

IMF direct deposit refunds for Assistant Commissioner (International) for D.O. 66, 97 and 98.

If hold codes are not correctly input by initiator, Accounting will reject the request. This prevents duplicate refunds.

Taxpayer outstanding balance liabilities or OBL documentation must be attached. If not attached, Accounting will reject the request.

Form 5792 Form 3753 must include specific reasons and appropriate authority as to why this item must be issued as a manual refund.

All Form 5792/Form 3753 must include the BOD that is initiating the manual refund.

All Form 5792/Form 3753 must have the box checked indicating that an open control base exists. If the box isn't checked, access IDRS to see if the control base has in fact been opened. If the control base has not been opened, reject the request back to the originator

Returns must be signed by the taxpayer; if joint return, by both taxpayers.

Photocopy or facsimile signatures are treated as unsigned, with the following exception: if a taxpayer submits an original signed statement quoting Revenue Ruling 68-500, accept the facsimile signature. The statement should read:
"I declare, under penalties of perjury, that the facsimile signature appearing on the return is the signature adopted by me to sign the returns filed and that such signature was affixed to the returns at my direction."

Unsigned or improperly signed returns are rejected back to the originator of the refund request.

Proof of economic hardship to support issuing an ACH/DD manual refund.

Proof from bank that savings or checking account exists and it is the account of the taxpayer or a voided check. Use discretion when taxpayer accounts are Married Filing Joint (MFJ).

These requests are granted under rare and unusual circumstances and must meet certain criteria. See references and actions required provided in IRM 21.4.4, Manual Refunds.

Procedures for immediate processing of hardship refunds should be considered, see reference IRM 3.17.79.3.3(2), Issuing Hardship Refunds below.

Prepare Form 3753, Manual Refund Posting Voucher.

The requesting office authorized approving official must sign and have a current signature on file with the SPC Certifying Officer. See reference at IRM 3.17.79.3.5, Employees Authorized to Approve Requests for Refunds.

The Approving Official is responsible for the validity of each refund requested. The request must be made directly to the Manual Refund function.

The request is supported by scanning or faxing the necessary documentation to the Manual Refund function.

These requests are for taxpayers who will suffer significant hardship if their refund is not processed within 5–10 days. Otherwise follow normal procedures if this accelerated time frame is not required.

Do not initiate a manual refund if the case can be cleared through Enterprise Computing Center (ECC) - Martinsburg in 2 cycles.

Contact the Manual Refund Unit at the Submission Processing Center. Determine whether the manual refund can be stopped.

Input CC NOREF to stop the generated (TC 846) refund. Valid for BMF tax accounts only.

Contact the Notice Review function in the appropriate Submission Processing Center to stop the refund.

Submission Processing Center Name.

Week Ending (Friday Date).

Manual Refund Amount, Principal: $___.

Manual Refund Amount, Interest: $___.

Employees authorized to sign manual refunds must not be the same employee authorized to adjust and/or initiate a request for manual refund on any one refund transaction for a taxpayer's account.

Also see IRM 3.17.79.1.7, Authorized Signatures and Delegations of Authority.

1. The Accounting Refund function will create a spreadsheet (PDF format) listing the Head of Office and the list of employees delegated to authorize manual refunds.

Quarterly create an E-mail for distribution to each Head of Office.

Quarterly request each Head of Office to validate employees on the current authorization list are and will continue to be acting as a manual refund authorizer, include "From and To "dates indicated as follows for the quarter relevant to the E-mail validation request.

Employee/manager name

Title/position

E-mail address

Mailing address

Telephone number

Business Operating Division (i.e., W&I, SB/SE, TAS, Appeals, etc.)

Campus, Business Operating Divisions (BOD) or field office organization.

Authorizer SSN and SEID.

Pseudonym, if applicable. Include approved documentation. (E-mail validation of pseudonym from the approving office).

Signature of designated/delegated employees. The signature must be signed in blue ink.

Statement certifying that IDRS Combination Sensitive Command Codes are no longer authorized for the employee listed to sign requests or certify refunds is referenced in IRM 3.17.79, Authorized Signatures and Delegations of Authority and IRM 10.8.34 IDRS Security Controls.

Date of the delegating managers (Head of Office) signature.

Date of receipt by the Manual Refund Unit.

Printed name and title of the delegating manager (Head of Office).

Signature of delegating manager (Head of Office). Digital signatures are accepted in this field.

The Sharepoint site is only accessible by designated personnel at each Submission Processing Center, Accounting function. Access Permissions Request must include employee name with corresponding SEID, along with the option of either "Read Only" or "Contribute" indicated. Access Permissions must be submitted by management to: Ronnie.Maldonado@irs.gov and Janet.Bertagnolli@irs.gov

The Form 14031, repository file instructions are located and accessible on the Sharepoint site. https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx

Accessing the Share Point site, Form 14031 repository file, allows electronic verification of the manual refund signature. All paper Forms 14031, will be maintained and secured for two years at each site and should be used for contingency purposes.

Effective October 1, 2012, a quarterly validation of Access Permissions to the Sharepoint site, Form 14031 repository file, will be requested by Headquarters via E-mail, to the Accounting function, management official.

When the employee's authorization is revoked, the name must be withdrawn from the signature list in the Manual Refund Unit.

Form 14031 must be submitted to and accepted by the Manual Refund Unit when adding new employees prior to their signing requests for manual refunds.

Heads of Office Management Officials must update signature lists within 24-48 hours, when personnel changes occur. The Manual Refund Unit solicits quarterly from all Directors or Heads of Office located in their processing jurisdiction to purge the list of employees no longer authorized. This solicitation should occur quarterly (refer to dates in item (6) above.

Campus Submission Processing, Accounting Operation, will submit a quarterly memorandum to Director, Submission Processing: Attn: Headquarter (HQ) Analyst for IRM 3.17.79 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Memorandum will certify to HQ the quarterly review and removal of employees no longer authorized to sign requests for manual refunds as Approving Officials was completed. Submit certifications for quarterly validations no later than January 1, March 1, July 1, October 1.

Directors of Appeals request manual refunds and apply existing criteria, e.g., refunds over $1 million, refunds issued to one spouse, and other systemic limitations.

Initiators of manual refunds in Appeals and Taxpayer Advocate Service must be properly trained and take the same precautions (research, case control and monitor accounts) to prevent duplicate refunds.

All initiators will be held to the same level of management scrutiny and responsibility to maintain internal controls and follow all IRM requirements.

If the request contains an unauthorized signature, the Manual Refund Function will reject the request back to the originator with a notation. However, Submission Processing Campus personnel are reminded to please exercise good judgment in the rejection of these cases.

If the refund involves a hardship case, Taxpayer Advocate Service case, or a large refund which will result in the Service paying a large amount of interest, the Certifying Officer will call area involved to resolve signature concern to allow processing of manual refund request.

The receiving Submission Processing Campus contacts the Submission Processing Campus having jurisdiction over the local area initiating the Form(s) to verify the person who signed the forms is authorized to do so.

If the person is an authorized official, process the refund as outlined above.

If the person is not authorized, return the case to the originator stating the reason it was rejected.

Analysis at Master File, Enterprise Computing Center (ECC) - Martinsburg, reveals an overpayment of $10,000,000.00 or more, principal and interest, the module is frozen from refunding or offset (and sets an -X freeze).

Refund transcripts generate to the respective SPC for expedite account resolution.

Output or Notice Review researches accounts and prepares Form 3753 when large dollar refund transcripts generate. Form 3753 are submitted to Accounting.

The "-X" freeze is released when a TC 840 posts with a dollar amount or if module balance becomes zero or debit. This occurs once the Form 3753 is processed through ISRP to reflect posting of the manual refund issuance (TC 840).

IRM 20.2.4.7.7 Overpayment Interest, Manual Refunds instructs all employees to review manual refunds over $1 million by a interest specialist prior to submitting to Accounting.

IRM 21.4.4.4(6) Preparation of Manual Refund Forms, mandates that manual refunds $1 Million or more and contain credit interest be reviewed by Campus Technical Unit. See IRM 21.4.4.4, Preparation of Manual Refund Forms for additional information.

Part 4 IRM provides special handling and procedures for reviewing cases and returns prior to release.

In addition to Compliance's Frivolous Filer Program, the Scheme Detection Center (FDC) uses a multi-functional approach to decrease the number of refunds released that may be questionable. See also IRM 4.19.10.5, Questionable Refunds, and related processing in IRM Part 4, Examination.

Returns are math verified for accuracy by the Reject function.

A special search determines if the taxpayer has any outstanding MF, Debtor Master File (DMF), or NMF liabilities. If any outstanding liabilities are found, take action to offset available credit.

If a "-L" freeze (AIMS indicator) is present on a module, research the account for the presence of a history item or activity code "MAAS (MMDDYYYY)." This indicates that a "quick assessment" has been requested, and that a new liability may be in the process of posting. If the assessment (TC 300 for other than .00) increase has not posted, contact Examination for the amount of the additional liability. Satisfy this liability prior to issuing a manual refund.

If a -L Freeze and AIMS Status Code is other than 00 through 06 or 08

Refunds that exceed $10 million, prepare Form 3753, Manual Refund Posting Voucher, and forward the complete case file to Accounting.

Prepare SPS or SF 1166. Master File cannot post amounts in excess of $99,999,999.99. However, more importantly, the Regional Financial Center (RFC), Financial Management Service, check processing equipment cannot process refunds via IDRS in excess of $9,999,999.99 due to check printing and check paper money amount field limits. If refunds exceed this limit, it must be issued as two or more refund checks. See IRM 21.4.4, Manual Refunds.

The Manual Refund Team will provide Treasury a two (2) day notification whenever a single refund or several refunds with an aggregate total of $50 million dollars has been received for processing.

The Manual Refund Team will provide Treasury a five (5) day notification whenever a single refund or several refunds with an aggregate total of $500 million dollars has been received for processing.

Submission Processing Centers will notify Treasury via E-mail when large dollar refunds meet respective thresholds, $50 million dollars or $500 million dollars. Refer to Figure 3.17.79-4 and E-mail document:

ACH, Checks, Principle and Interest

Grand summary of Fedwires to be disbursed (list each individually)

Enterprise Computing Center (ECC) - Martinsburg, receives the FOMF from FMS via the Federal Reserve Board each month. The FOMF contains all current bank Routing Transit Numbers (RTN) and addresses.

ECC uses this file to validate the RTNs for taxpayers that request an electronic funds transfer (EFT) or direct deposit refund. When FMS receives the IRS EFT refund files, FMS validates the files against the current FOMF.

The Secure Payment System (SPS), includes enhancements that allows RTN verification during the certification of refunds. If the RTN fails validation the refund will be sent back to the IRS for correction or submission as paper check.

Formally request a refund of the levy proceeds they made in error.

Send a letter to the appropriate SITLP Coordinator (a list of SITLP Coordinators is located on the Servicewide Electronic Research Program (SERP), http://serp.enterprise.irs.gov/databases/who-where.dr/sitlp_coord.htm.

The SITLP Coordinator advises the Compliance Services Collection Operations (CSCO) or ACS Support staff in their Campus, to verify credits and reverse the amount to credit the liability.

CSCO or ACS personnel will prepare necessary documentation to request a manual refund and forward to Accounting Operations.

See IRM 5.19.9.2.7, Refunding SITLP Payments.

Reject Form 4466 quick refund requests submitted for trusts or estates. Quick refunds for trusts and estates are not allowed.

Rejected/disallowed Form 4466 for estates or trusts should be communicated to the taxpayers via IDRS Correspondex 1287C letter. Accounting will respond to correspondence returned to the function from taxpayer.

Review documents and ensure Form 4466 submitted for processing is solely for corporate returns (IRC 6425, exception for corporations only). Per the Reg. 1.6425-1(b) (2), Form 4466 is not considered a claim for credit or refund.

Expedite processing of Form 4466 is required. The refund must be issued within 45 days of the received date.

Immediately upon receipt of Form 4466, use IDRS CC ACTON to place documents under case control. See IRM 2.3.12, Command Code ACTON. Control cases using activity code "Form 4466" . See Figure 3.17.79–15.

Figure 3.17.79-14

TIME FOR FILING A corporation may, after the close of the taxable year before the 16th day of the third month following the close of the taxable year, file an application for an adjustment of an overpayment of estimated tax for such taxable year. An application under this subsection shall not constitute a claim for credit or refund. (Filing Form 7004 does not extend time for filing Form 4466, but Form 4466 will be considered timely if received the day following a due date which falls on a holiday or a weekend ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or if the envelope contains a timely date stamp which is prior to the due date). Hold in a suspense file all Form 4466 received up to two weeks prior to the close of the taxable year. Normal processing should begin on the first day after the close of the taxable year. If the tax year ending month is different than the established accounting period, initiate research of the Form 1128 file maintained by Entity Control. If a request or change of accounting period is submitted with Form 4466, Entity Control inputs Command Code BNCHG to correct the accounting period prior to issuance. A corporation filing under the Consolidated Return Regulations is not required to submit a Form 1128 or request a change in accounting period IF, AND ONLY IF, a statement is included with Form 4466 specifically stating that the corporation is filing under the Consolidated Return Regulations. The statement must cite the appropriate section of the Regulations 1.1502.76(c)2 and 1.1502.75(d)(1). Reject the application if Form 1128, Request for a Change in Accounting Period, or a statement is not present.

A Form 4466 is valid if line 8 is at least 10 percent of line 7, expected income tax liability, and at least $500.

Verify that there is a Master File account for each taxpayer.

If the Form 4466 filer is a subsidiary of a corporation which elected to file a consolidated return, the filing period is that of the parent for credits included in the consolidated return.

Access IDRS CC ACTON to update the activity code to "4466REJECT" . See Figure 3.17.79–16.

Prepare single Form 3753, Manual Refund Posting Voucher, to input TC 840 for zero amount to release X Freeze Code when the return posts. Update control base to TC 840 input. Circle in red TC 770, to prevent "I" Freeze. The transaction code for zero will indicate a claim for refund was received but not processed. See Figure 3.17.79–17 and Figure 3.17.79–21.

Send IDRS Correspondex 1287C letter to the taxpayer. See Figure 3.17.79–18.

Close control base after Form 3753, TC 840 .00 amount, 1287 C letter sent, etc.

Photocopy Form 4466 and return the original to the taxpayer along with the letter of explanation.

Keep a pending case file containing the photocopy of rejected Form 4466, the 1287C letter, and any research for three months. After three months destroy the case file.

For calendar year corporations with a tax year that ends December 31, 2009, the due date would be on or before March 15, 2010.

For a fiscal year corporation with a tax year ending October 31, 2009, the due date would be on or before January 15, 2010.

All employees must be aware of the variety of freeze conditions and the actions required to resolve accounts prior to forwarding cases to Accounting.

We encourage all functions to participate in the Continuing Profession Education (CPE) process.

Contact ACS Support Compliance Liaison.

Notify the Accounting Branch of the Wrongful Levy refund request forthcoming.

Prepare appropriate documentation (Form 5792) and supporting documentation that will be "FAXED" to the ACS Support Compliance Liaison function.

The submitting field office sends a follow-up Part "1" , of Form 5792, with the original signature to the Compliance Liaison function.

Compliance Liaison Function verifies that Form 5792 is completed correctly, all supporting documentation is attached and hand carries both Form 5792 and supporting documentation to Accounting.

Verify Form 5792 and documentation are complete and correct as outlined in IRM 21.4.4, Manual Refunds, IRM 3.17.79.3 and IRM 3.17.79.4.

"WRONGFUL LEVY - HAND CARRY" should appear in the remarks area.

Correct discrepancies by telephone under unusual circumstances. Otherwise, will reject the refund request back to Compliance for correction or resolution.

Prepare Secure Payment System (SPS) Form 1166, Voucher and Schedule of Payments, and transmit to the San Francisco RFC.

Input two history items on IDRS using appropriate Campus or ULC code, as follows: (create a dummy module when necessary) See Figure 3.17.79–26.

Figure 3.17.79-26

Call the originator to inform them that the information was received, processed and the check has been scheduled.

Returns arrive in Accounting Operations with the country code and tax rate indicated at the bottom of the return.

All dual status returns, non-resident alien returns, and foreign corporation returns are rejected to Accounting Operations. If a zero or no withholding rate is shown on the return, reject the return to the Error Correction Unit for reinput, if the manual refund is not required for any other reason (e.g., to release a freeze conditions, etc.).

Follow instructions for processing a manual refund in IRM 3.17.79.3.2. Generally, these are IDRS generated refunds on Form 5792.

Prepare Form 5792 or Form 3753, as necessary.

Compute the withholding tax on the allowable interest using 30 percent or the treaty rate, as applicable.

Subtract the amount of withholding tax from the net amount of the refund.

Input TC 770 for the amount of interest withheld (30 percent of the treaty rate), as applicable. Input TC 290 for zero, TC 770 for the amount of interest withheld, Hold Code (HC 2) to hold notices and credit until TC 820 posts. Cycle delay (CD) 4 to delay posting of TC 290 and TC 770 until the TC 150 posts.

Prepare Form 3809 using TC 820 on the debit portion, for the amount of interest withheld, and TC 700 for the credit portion to the 4610 Account. See IRM 3.17.243, Miscellaneous Accounting, for more information on preparation of transfer documents.

NMF- Prepare Form 3809 for the amount of interest withheld (30 percent or the treaty rate), as applicable. Input TC 770, Credit taxpayer's NMF account; Debit 6520 Account.

NMF- Prepare Form 3809 using TC 772 on the Debit portion for the amount of interest withheld; use TC 700 for the Credit portion to the 4610 Account.

Mail the original Form 5205 to the taxpayer. Associate Form 5205 with the related SF 1166/SPS refund schedule.

Attach F 5205, Part 2, to Form 3809 (credit side) going to the 4610 Account. Forward Form 3809 for numbering and further processing.

Forward F 5205, Part 3, IRM 3.17.79.7.2

Attach F 5205, Part 4, to the tax return along with Part 3 of Form 5792 or Form 3753.

Accounting Operations monitors the account until all transactions post.

The RACS area inputs the refund, principal and interest and related journal actions.

Transfer the amount withheld from interest paid to the 4610 Account, Unapplied Advance Payments, via Form 3809. This is held in escrow until the withholding agent's return is filed. See IRM 3.17.79.6.2.

Credits accumulate and are transferred monthly in a lump sum by Accounting Operations, from the 4610 Account to the withholding agent's account on the Master File using Form 3809 and posting a TC 700.

Part 3 of Form 5205 is maintained in the appropriate area as outlined in 3.17.79.6.2. Balance the Form 5205, and the monthly lump sum transferred from 4610 Account to the withholding agent's account.

Make an NMF assessment

Apply a TC 770

Transfer transaction to the Master File on Form 514B

These manual refunds must be requested on Form 3753, Manual Refund Posting Voucher.

Documents supporting this are received from the Financial Management Service and provide credit substantiation for making these refunds. These are reimbursement payments to financial institutions, not to taxpayers.

Form 3753 will be initiated by Lockbox Coordinators or their designees.

Only specific sections of the Form 3753 will be completed.

No payee ID (TIN) will be indicated.

No MFT or Tax Period will be shown.

No interest will be paid on reimbursements.

Charge Appropriation 20X1807;

Refund from Account 6910;

"Lockbox Reimbursement" at Item # 5, Other Remarks.

Researches IDRS, ANMF, and microfilm to determine that there are no outstanding tax liabilities;

Prepares Form 5792, Request for IDRS Generated Refund (IGR);

Annotates "Bankruptcy Code Case" in the Remarks Section of Form 5792 and

Annotates ≡ ≡ ≡ ≡ in the Remarks Section of Form 5792 when a ≡ ≡ ≡ freeze is found in an account.

If refund amount is not subject to automatic stay, a Bypass Indicator "3" must be used to prevent offset through Treasury's Offset Program (TOP).

Incomplete or inaccurate Form 5792 cases are rejected to the initiator.

CSCO function is responsible for inputting CC RFUND on these special cases to maintain case control.

Submission Processing Accounting Operations is responsible for inputting CC REFAP (refund approval) outlined in IRM 3.17.79.4.1.

Offsets regarding Telephone Excise Refund Tax or TETR, see IRM 21.4.6.

Offsets regarding Economic Stimulus Payments or ESP, see IRM 21.4.6.

A copy of the evidence provided by the taxpayer to show substantiated excess credit, such as a copy of the return with a copy of the EIC schedule, W2(s), etc. and

A print of TXMOD showing the amount of liability bypassed.

The manual refund document must be received no later than the Friday before the current Master File Assessment Document date (23C or Assessment date, which is always a Monday) of the original return.

If Form 3753 - Form 5792 are not received before established cutoff times before the Assessment Document Date (23C) or

If the required documentation and written statement in the remarks section is missing from Form 3753 - Form 5792, but not before attempting to secure needed documentation in time to process the OBR;

If the manual refund document has not been approved by the functional Approving Officer of record and/or the Taxpayer Advocate Liaison or Coordinator in sufficient time to meet the cutoff times.

Manual Refund Unit employees (approving manual refunds) are not required to research for outstanding balance liabilities (OBLs) on OBR manual refunds when Form 3753 - Form 5792 are received from other functions. The originator is required to confirm there are no liabilities prior to initiating manual refunds.

Initiator will provide documentation as indicated in IRM 3.17.79.3.21.(2), above. Initiators must research accounts for OBL's and attach documentation to Form 3753 Form 5792 routed to Accounting for approval.

See IRM 21.4.4.5.1, Monitoring Manual Refunds.

These refunds are not issued from the refund appropriation. These items are not overpayments of tax.

Disbursements are authorized by IRC 7623, amended by Section 1209 of the Taxpayer Bill of Rights II, Public Law 104–168.

Case Control Claim Numbers will be assigned by Examination on each item.

Headquarters Examination assures no duplicates will occur.

Request is submitted on Form 3753, Manual Refund Posting Voucher, along with related supporting documentation.

Compliance maintains case control and internal controls (e.g., separation of duties).

A database was developed to perform future research. Maintain Case or Claim Number, TIN and dollar amount. This is essential in the event a check is returned by the taxpayer (via SF 1098 as TC 841) or is returned undeliverable by the Postal Service (via SF 1098 as TC 740).

Correspondence from Compliance management official authorized to request payment and providing pertinent information (e.g., 2395 or general ledger account credit and debit instructions, etc.).

Form 3753, completed by the requesting office and signed by the authorized Approving Officer.

Section I., Item 11, General Ledger/Appropriation block 20X5433 Account Symbol; or 20X5433.1.

Section II, Item 1c Handbook reference: IRM 25.2, Information and Informants' Rewards.

Section II, Item 2d Evidence of Credit Condition: Other, IRC 7623, TBRII 1209;

Section II, Item 3, Interest: check box "Not Allowable" .

Section II, Check applicable box: Necessary supporting documents attached.

Cross out entire Section III, Interest Computation.

Section IV, Other Remarks: Write Case claim number # ___and DLN where supporting documentation is filed.

THESE ARE ADMINISTRATIVE PAYMENTS, NOT TAX REFUNDS. These must be certified to and issued by the Submission Processing Campus' local Regional Financial Center.

Fresno and Ogden to San Francisco RFC;

Atlanta to Birmingham RFC;

Cincinnati to Chicago RFC;

Kansas City to the Kansas City RFC;

Austin to Austin RFC; and

Input the Account Symbol 20X5433.1.

Input the Compliance Claim Number (from Section V of Form 3753) assigned by Examination in "Remarks" area of SPS. This literal will be printed on the check to identify if it is undeliverable or returned.

Cancellation credits are returned to the Submission Processing Campus Agency Location Code (ALC) addresses via paper SF 1098 schedule.

Forward a copy of the SF 1098 schedule to Compliance (Examination) for research or to be reissued. These actions are only possible when the Examination Case Claim Number appears on the cancellation schedule.

Limited Payability (LP) cancellations may occur after 14 months from the check date if the check is not presented to Treasury for payment. LP credits are returned via SF 1081 from TRACS in Hyattsville, MD to Enterprise Computing Center (ECC) - Martinsburg.

Cancellations are reversed back to Account 4755, via Form 3245, Posting Voucher, Refund Cancellation or Repayment.

Update the Examination Case Claim database showing the check was returned/cancelled. Inform the originating office that the check was returned and for the reason. Compliance may wish to initiate action to reissue or to hold for future reference for inquiries from the recipient.

Processing instructions appear in IRM 21.4.4.6.3, Credit Card Chargebacks for Credit Card transactions.

See list in IRM 21.4.4.6.3(1).

Procedures were coordinated between the IRS Electronic Tax Administration (ETA) and Accounts Management staff.

These disbursements are governed by regulations as published in the Federal Register, December 15, 1998, T.D. 8793, 26 Code of Federal Regulations, Part 301, Credit Card and Debit Card Tax Payments.

Processing is centralized to Ogden Submission Processing Campus only.

Backup and supporting documentation from the Processor must be submitted to Ogden Campus.

See IRM 21.4.4.6.3, Credit Card Chargebacks.

Establish internal controls to prevent duplicate payments.

Control cases using a unique case control numbering system. This control number will be associated with all source documentation (e.g., Form 3753, Form 2424, Form 3210, etc.).

Maintain case controls. Route cases using Form 3210, Document Transmittal.

Disbursements are scheduled and certified by the Manual Refund Unit. If possible, the Refund Schedule number will be recorded on the Form 3210, returned to the originator for appropriate retention. The Refund Schedule number is required in the event IRS must trace disbursements made to Credit Card Processors.

Verify that Form 2424 total the grand total refund amount.

Verify that the back-up or supporting documentation is attached.

Perform other validity checks as appropriate.

See IRM 21.4.4.6.3.

The Manual Refund Unit must be able to distinguish these 'claims' and schedule them as an ACH Direct Deposit made to the Processor only.

Section I, Account Information.

Item 1, Taxpayer Information Number (TIN).

Item 3, MFT: Insert "X" .

Item 6, Name and Address of Taxpayer: Insert "X" .

Item 10, Make Check Payable to: Insert "RTN and Account Numbers" provided by the Credit Card Processor. Verify RTN and Account numbers with the documentation provided by the Processor. Supporting, back-up documentation must be provided to verify account numbers for scheduling and certifying disbursements.

Item 11: Enter Account Symbol 20X1807 and amount.

Section II, Manual Refund Authority.

Reason, Item 1c, Handbook Reference: Insert "IRM 21.4.4."

Item 1d, Other: Enter "IRM 21.4.4, How is a Chargeback Request Processed?, and Federal Register 12/15/98, T. D. 8793, 26 CFR, Part 301."

Evidence of Credit Condition: Insert "X, Other, Chargeback for Credit Card Transactions." Transcript of Account.

Item 2d, Other: Insert 21.4.4.6.3, Credit Card Chargebacks.

Interest: Not allowable.

Check box, All items above completed.

Check box, Necessary supporting documents attached.

Checkbox for initiating BOD (Business Operating Division)

Section III, Interest

No interest will be paid on these items.

Section IV, Other Remarks

Insert: Back-up documentation is attached. List case control unique identifying number here.

Disburse from the San Francisco Regional Financial Center. These are not tax refunds.

Certify via SPS, select ACH Option.

Disburse from Treasury Account Symbol 20X1807.

Use "F" (for ACH Direct Deposits, Ogden Only), as the Refund Schedule number definer.

The CC REFAP may only be entered by Submission Processing Accounting Control and Services Operation employees.

The two-sided entry of CC RFUND and REFAP are the internal control standards required by GAO.

Employees with CC REFAP in their IDRS profile are restricted from also having a variety of sensitive combination command codes allowing accounts adjustments.

The Approving Officer has not signed Form 5792.

The signature of Approving Officer does not match the signature on memorandum list. Caution must be used on initials.

Signature of Approving Officer, on Form 5792, is not on the authorized memorandum list.

If the applicable manual refund authority boxes are not marked and the research material or back-up documentation is not attached to the Form 5792, reject the manual refund.

If the address on Form 3753 -Form 5792 does not match the address on Master File and there is no explanation in the remarks area. The explanation must include reason for the different address as well as where the backup documentation will be filed per IRM 21.4.4, Manual Refunds.

The refund amount and/or the interest computation is in error. Verify "From" dates and "To" dates are appropriate.

Figure 3.17.79-29

First name line is made out to the "Deceased Taxpayer."

Blocking Series is blank or other than 9, and Form 8379 is attached or Injured Spouse is indicated in Remarks.

Credit offsets moved to a different TIN and/or tax period and not moved back to the appropriate taxpayers TIN and/or tax period. Caution must be used when issuing a refund to a taxpayer from a different SSN/EIN. This can cause disclosure issues, as well as, forfeit the proper audit trail. See IRM 11.3.1, Introduction to Disclosure for additional information.

If an overpayment is offset and credit-interest is allowed (TC 736), the credit interest must be addressed if offset is reversed.

The case file does not show the initiator(s) employee number on Form 5792, Section IV, Block 1 (IDRS CC RFUND in field 12) and/or terminal and pending sequence number. The originating employee may or may not be the same employee inputting CC RFUND. The mandatory IDRS field 12 programming enhancement was based upon findings made by the Treasury's Inspector General for Tax Administration (TIGTA) to improve the IDRS Generated Refund audit trail.

If the open control base box , Section II, is not checked. Research IDRS and if the base is open, mark the box. If the control base is not open, reject to the originator.

If the initiating BOD, item #21 is not indicated, contact the originator to obtain the information. Mark the appropriate field. If you can not make contact with the originator, reject the form - returning it to the originator.

A TC 810 (E freeze), TC ≡ ≡ or TC 916 (Z freeze) is posted to the tax module. A TC 918 (Z freeze) is posted to the entity module, and the case file does not include Criminal Investigation approval for the refund. A TC 790 without Examination approval where adjustment action is involved.

A F- Freeze is a Frivolous Return Program freeze set by posting a TC 971-089. Refer to IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments and/or Document 6209 Section 8.4 Master File Freeze Codes.

An attached return is unsigned, or if it is a joint return, does not contain both taxpayers' signatures. Photocopy signatures are treated as unsigned. Facsimile signatures are also treated as unsigned returns, unless a statement is provided as outlined in IRM 3.17.79.3.2.

If Computer Condition Code (CCC) 3, (Form 1040), or Computer Condition Code X, (Form 1120) is present on IDRS, reject the case. If a Transaction Code 918 is present on IDRS reject the case and immediately contact the Scheme Development Center (SDC) for review.

If a TC 971 AC 664 is present on the IDRS module for the same overpayment, Do Not Process reject the Form 5792 back to the originator. Presence of TC 971 AC 664 indicates that a Form 3753 is in process or has processed a refund to the taxpayer. Processing the refund request may result in an erroneous or duplicate refund.

If requires Examination Branch approval; Examination's approval is required if Project Code 21 and an E freeze code exists on the entity. Immediately contact Examination's Pre-Filing Notification Coordinator if the situation occurs and approval has not been received from Examination or meets Joint Committee threshold of $2 million.

-L Freeze and the account has a history item or activity code of MAAS (MMDDYYYY). This indicates that a quick assessment has been requested, and that a new liability may be in the process of posting. If the assessment (TC 300 for other than .00) increase has not posted, contact Examination for the amount of the additional liability. Satisfy this liability prior to issuing a manual refund.

-L Freeze if AIMS Status Code is other than 00 through 06 or 08.

Approving Official's signature DATE omitted.

Originator's telephone number omitted.

The Refund Statute Expiration Date (RSED) has expired. Be particularly careful if a refund has been prepared where a Substitute for Return (SFR) has posted. The RSED is the later of: 3 years from the Return Due Date (RDD) or 2 years from the payment date.

If unresolved credit balance modules when the RSED has expired. Areas should coordinate with the Statute function. If assistance is needed in computing the RSED, contact the Statute function.

No cross-reference in Remarks where credit source documents are filed (e.g., TIN, tax period and transaction code and TC 971 (or DLN) for Injured Spouse cases, etc.) or Bypass Indicators (BPI) are missing.

There are blank areas on the Form 3753 or Form 5792 entity area.

There is white out or correction tape when received in Accounting for approval.

Accounts indicating bankruptcy or litigation Master File freezes. When accounts show TC 520 "-V" or "-W" Master File Freezes, refund requests must be initiated by the Compliance area: Insolvency managers (for bankruptcy freeze) or the Technical Services function (for litigation freeze).

No control base, Monitor status (M) or other status, except status C. See IRM 21.4.4.5.1, Monitoring Manual Refunds for exceptions regarding CIS and TAS cases.

Research the taxpayer account for Refund Holds, see Document 6209, IRS Processing Codes and Information for various freeze conditions that will hold credits from automatic release.

Send Part 1, file copy of Form 5792, Request for IGR, to Files to be associated with the Form 5147, IDRS Transaction Record.

Pull all ANMF transaction records with associated case file and forward for input to RRACS.

For refunds being rejected, IDRS no-match is returned to originator with Form 5792 describing the reason it is being rejected by Accounting. Route back to the originator. (See Figure 3.17.79-32.)

After ANMF Cases have been properly input to RRACS, associate the Form 5147 and forward original copy of the Form 5792, Request for IDRS Generated Refund, to Files. Attach a copy of the Request for IGR to the ANMF Transcript (if deemed necessary). A third copy of the Form 5792, IGR request may be associated with the case file for appropriate monitoring actions. Route to the originating employee/tax examiner for proper disposition. This may include actions to close the IDRS control base.

Use of this command code is limited to those supervisors or designated employees within the Accounting Control and Services Operation Department designated as authorized to approve and schedule manual refunds.

The employee inputting IDRS CC REFAP cannot be the same employee as the employee inputting CC RFUND. IDRS Generated Refunds input via CC RFUND/REFAP is a two-sided entry system developed as a security measure. This meets the internal control standard of: Separation of Duties. Employees initiating requests for refund (CC RFUND) cannot be the same employees inputting (CC REFAP) the refunds.

Action Code "6" condition is caused by failure of related CC RFUND to match on CC REFAP data elements.

When a CC REFAP does not match all elements of CC RFUND, Accounting returns the case to the originator for input of another CC RFUND. When the DQ is caused by inputting CC REFAP, the Accounting personnel initiates a new CC RFUND (see Figure 3.17.79–34).

CC RFUND must be re-input exactly as indicated on the Form 5792 for Injured Spouse claim refunds when DQ is caused by input of CC REFAP by Accounting.

Block Series Number "9" identifies an Injured Spouse claim refund.

The Bypass Indicator (BPI) identifies the eligibility of the Injured Spouse for TOP offset. The Bypass Indicator must appear on Form 5792 and be reinput accurately. See IRM 21.4.6.3.2, TOP Offset Bypass Indicator.

If CC REFAP was not input or was input incorrectly, Accounting inputs both CC RFUND and CC REFAP.

If CC RFUND was not input or was input incorrectly, it is sent to the originator for CC RFUND and the Manual Refund function will subsequently input CC REFAP.

The employee inputting CC REFAP cannot be the same employee inputting CC RFUND for the same account.

Multiple CC RFUND and one CC REFAP-Initiating employee did not use CC TERUP on the incorrect CC RFUND.

Multiple CC REFAP and one CC RFUND-Employee initiating CC REFAP input information and realized it was in error input another CC REFAP (CC TERUP is not available for CC REFAP), or inadvertently input multiple CC REFAP for the same case.

TIN and File Source

ULC (valid for Submission Processing Center of input)

MFT

TC 840 Amount

Date of input (YYDDD) (DDD = Julian date)

Zip Code

Submission Processing (Center) Code

Delete the TC 840 record from TEP if possible; if not, prepare a credit portion of Form 3809, TC 841, Doc Code 48 to reverse TC 840. Cross reference information must be sufficient to establish a clear explanation of events.

Manually adjust the IDRS PJ Recap and the Net Tax Refund Report to remove any deleted items and amounts from the affected Master Files (IMF, BMF, ANMF, IRAF).

Enter a History item (CC ACTON) on IDRS to indicate the refund has been deleted and the case has been returned to the initiator.

Input CC DELETE to eliminate erroneous TC 840 on IDRS Refund Information File (RFIF).

Return case file to the initiator (with reason for deletion) for necessary action (e.g., reversal of adjustments, stop notices, additional adjustments, case monitoring, etc.).

Refund Schedule Number generates from the EOD-2640 run via Control D. IDRS Generated refunds (IGR) and refund schedule number has always generated in the EOD-26 runs. Since July 2002, refund schedule numbers use the definer "W" designating IDRS Generated refunds.

See IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

Control D provides the IDRS End-of-Day (EOD) output.

Secure Payment System (SPS) Screen requires a reel number. Reel number is available from Control D, the FMS MCC/ECC Acknowledgement Report.

See Exhibit 3.17.79–8 (Refund Schedule Number Formats as Entered into SPS).