3.17.220  Excess Collections File

Manual Transmittal

December 13, 2013

Note:Do not remove and insert pages or dispose of obsolete transmittals prior to 01-01-2014.

Purpose

(1) This transmits revised IRM 3.17.220 Accounting and Data Control, Excess Collections File.

Material Changes

(1) Revisions to text, figures and exhibits have been made throughout the IRM for processing year 2014 as necessary. Several editorial, numbering and reformat changes have been made. IRM references have been corrected.

(2) Changed references throughout from IRM 1.15.29 (obsolete) to Document 12990 Records and Information Management Records Control Schedules.

(3) IRM 3.17.220.1.4(8)(b) Removed paper reference.

(4) IPU 13U0044 issued 01-09-2013 IRM 3.17.220.1.5(7)(a) Added Exception for working unresolved credits from Accounts Maintenance Research (AMRH) and Statute teams.

(5) IRM 3.17.220.1.8 Added information on SSNER 2D Barcode project and updated various acronyms.

(6) IRM 3.17.220.2(17)(a) Removed reference to retire dropped listing to Federal Records Center (FRC).

(7) IPU 13U0437 issued 03-01-2013 IRM 3.17.220.2.1(1) Added new paren (f) for credits received in Unidentified Remittance from External Leads Processing for Fresno and Cincinnati only.

(8) IPU 13U1361 issued 08-16-2013 IRM 3.17.220.2.1.1 Updated renumbering of Federal Tax Deposit (FTD) Electronic Federal Tax Payment System (EFTPS) payments.

(9) IPU 13U0613 issued 03-26-2013 IRM 3.17.220.2.2(6) Added Exception for payments received from Integrity and Verification Organization (IVO).

(10) IPU 13U0903 issued 05-10-2013 IRM 3.17.220.2.2(11) Removed (c) Credits received from AMRH transcripts and added a Note for TC 971 AC 296 usage.

(11) IPU 13U0769 issued 04-18-2013 IRM 3.17.220.2.2.1 Added new subsection Identity Theft - General Instructions.

(12) IPU 13U0903 issued 05-10-2013 IRM 3.17.220.2.2.1(4) Changed from AMTAP to IVO.

(13) IPU 13U0769 issued 04-18-2013 IRM 3.17.220.2.8 Added new paren (8) when taxpayer response indicates identity theft.

(14) IRM 3.17.220.2.9(6)(1) and (2) Removed reference to Form 11358, Excess Collection processing.

(15) IPU 13U1361 issued 08-16-2013 IRM 3.17.220.2.11(3) Added Note for Medical Resident Federal Insurance Contribution Act (FICA) cases.

(16) IPU 13U1361 issued 08-16-2013 IRM 3.17.220.2.13.1(5) Removed reference to Letter 672C.

(17) IRM 3.17.220.2.16 Added new paren (1) reports are viewed on "Control D" website.

(18) IRM 3.17.220.2.16(8)(a) and (b) Removed reference to retire dropped listing to FRC.

(19) Exhibit 3.17.220-3 Removed Form 11358 as obsolete.

Effect on Other Documents

IRM 3.17.220 dated November 14, 2012 (effective January 1, 2013) is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - 13U0044, dated January 9, 2013; 13U0437, dated March 1, 2013; 13U0613, dated March 26, 2013; 13U0769, dated April 18, 2013; 13U0903, dated May 10, 2013; and 13U1361, dated August 16, 2013.

Audience

Wage and Investment, Small Business/Self Employed, Large Business and International (Tax Examiners, Customer Service Representatives, Accounting Technicians) and Taxpayer Advocate Service personnel

Effective Date

(01-01-2014)


Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.17.220.1  (01-01-2012)
Purpose

  1. This IRM provides instructions for the Campus Accounting Operations to process non-revenue receipts credits in the Excess Collections File (XSF) on the Integrated Data Retrieval System (IDRS).

3.17.220.1.1  (01-01-2012)
Scope

  1. The instructions contained herein are for processing non-revenue receipts credits which, for various reasons, cannot be applied to a taxpayer's account.

  2. Unless otherwise specified, the term "Master File" will apply to Business Master File (BMF) and Individual Master File (IMF), and the term "Non-Master File" will only apply to the NMF.

3.17.220.1.2  (01-01-2014)
IDRS Notice Issuance Criteria

  1. All employees must be aware of IDRS notice issuance criteria and the input of Command Code (CC) STAUP on a module if closing action cannot be accomplished before the next notice is issued.

  2. The number of cycles must be for a sufficient period to ensure that balance due notices will not be issued prematurely. CC STAUP will be automatically released after nine cycles without an open control base on the tax module. It may be necessary to extend the previously input STAUP if the transfer procedure is lengthy.

3.17.220.1.3  (01-01-2012)
Processing Timeframes

  1. Valid CC XSADD cases must be added to the XSF within five workdays of receipt in the Excess Collections function of Form 8758, Excess Collections File Addition. This procedure includes any action necessary to remove the credit from its previous location. See IRM 3.17.220.2.3.

  2. All CC XSADD cases must be thoroughly researched to the standard outlined for Unidentified Remittance cases in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Substantial efforts to attain this research standard must be initiated within two workdays of their addition to the XSF. See IRM 3.17.220.1.5.

  3. Valid CC XSAPL cases must be applied from the XSF within one workday of receipt in the Excess Collections function of Form 8765, IDRS Control File Credit Application.

3.17.220.1.4  (01-01-2014)
Managerial Reviews

  1. First line managers of personnel working XSF cases will conduct periodic reviews (at least quarterly) of cases assigned to all employees. The purpose of the review process is to ensure that employees are properly processing cases in a timely manner. Additional IDRS training, research guidance or counseling may be warranted if deficiencies are noted.

  2. Managers will review 6800 cases in "OPEN," "FROZ" and "IDEN" status, monthly. Select sample cases from the URF50 (XSF), Control D Report Name "XS Case Assign List," with reference to URF01 (XSF), section Monthly Excess Collection 6800 Analysis Report, as described in Exhibit 3.17.220-1, "Sample Selection for Normal Managerial Review (Table 1)," and Exhibit 3.17.220-2, "Sample Selection for Accelerated Managerial Review (Table 2)."

    Note:

    The URF01 (XSF) and URF50 (XSF) Reports are generated from the URF runs. URF01 (XSF) is Part 2 of the URF01 Report.

  3. Determine ending inventory volume or "New XSF Balance" from monthly URF01 (XSF) listing.

  4. See Exhibit 3.17.220-1 (Table 1) for determining the sample selection.

    1. Identify appropriate range within which the inventory volume determined in (a) falls within the most left-hand column of Table 1. All sampling information needed for the month's managerial review is found in the various columns of this line of the Table 1.

    2. Begin sample selection on the page of the XS Case Assign List shown in the second column from the left of Table 1.

    3. Counting down from the first case at the top of the identified page of the XS Case Assign List, select the first case for review as directed in the third column from the left of Table 1.

    4. The most right-hand column of Table 1 identifies the XS Case Assign List page locations of the remaining cases to be selected for review. Add the number shown in the most right-hand column of Table 1 to the page number in 2; the next case to be selected for review will be on that page on the same line identified in 3.

    5. Continue this procedure until there are no more pages in the XS Case Assign List. Use all pages, even if not completely full of cases. If the needed line number of the selected page is blank, select the first case at the top of that page for this selection only. Any case may be reviewed more than once while it is in Account 6800.

  5. For example:

    1. The monthly 6800 URF01 (XSF) listing shows an ending inventory of 16,704.

    2. The first case to be selected for that month's managerial review is the fourteenth case from the top of page nine of that month's XSF50 assignment listing.

    3. The second case selected for review is the fourteenth case from the top of page twenty-four of the XSF50. If page twenty-four shows only eight cases, the first case at the top of the page becomes the second selection.

    4. The third case selected for review is the fourteenth case from the top of page thirty-nine, etc.

  6. After the complete sample is selected and the identified case pulled, the manager may begin the review which must be completed before the end of the current month.

  7. Should the review indicate that fewer than 95% of the reviewed cases have been acted upon properly, both Tables 1 and 2 will be used to select samples for the next monthly managerial review.

  8. In addition to the case load reviews, the following output listings shall be sample reviewed to ensure that adequate and proper actions are being taken by all employees:

    1. Restricted Apply Register (URF0340)—quarterly review and

    2. Dropped Listing (transfer from Excess Collections File)—annual review. The Control D Job Name is URF50, with Report Name "XCESS COLL DROP LST1" .

3.17.220.1.5  (03-01-2013)
Research

  1. Research will be conducted on items by the originator, prior to being added to the XSF to determine if the credit can be resolved, regardless of the dollar amount of the item. Both large and small cases are to receive equal attention, but large-dollar cases will be worked first.

  2. Statute barred credits will be received from other IRS areas to be transferred to the XSF. The application of the credit may be barred because the taxpayer:

    1. Submitted a payment for an amended return, or in anticipation of a tax adjustment prior to the Assessment Statute Expiration Date (ASED) but a timely assessment is not made.

      Note:

      A taxpayer is not entitled to a refund of the advance payment on the grounds that it was not timely assessed if the taxpayer would otherwise owe that amount. See IRM 25.6.1.10.2.5.6.1(1), Claim for an Amount Paid Before the ASED.

    2. Had tax withheld or submitted a payment such as an estimated tax payment, but a return claiming a credit or refund was not filed by the taxpayer or secured by the Service until the refund/credit statute expired.

  3. Non-barred credits will come from various IRS areas when those areas cannot identify where the credit should be applied after exhausting all research possibilities.

  4. Research will determine which Status Code to use when adding the credit to the XSF: "FROZ" , "IDEN" , and "OPEN" . See IRM 3.17.220.2.2 for further explanation.

  5. When received for addition to the XSF, the following cases are not researched by XSF for resolution. See IRM 3.17.220.2.7 for further explanation. XSF will review Form 8758 entries, availability of credit, correct entity, Statute Expiration dates and if applicable, attached or notated documentation:

    1. An advanced payment for an amended balance due return received prior to the ASED and the assessment was not made.

      Note:

      All cases received where the statute expired after receipt will be reviewed for attached or notated documentation showing evidence of all research performed to secure or resolve the account prior to statute expiration.

    2. Original or amended refund returns received after the Refund Statute Expiration Date (RSED).

    3. Payments made on statute tax years when the case is in litigation.

    4. Credits for self assessed penalties on Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for Master File Tax (MFT) 13 or MFT 55.

    5. Bankruptcy payments.

  6. Whenever a taxpayer contact via telephone or correspondence is unsuccessful, a transaction code (TC) 971 action code (AC) 296 must be added to the module to indicate that the account has been thoroughly researched [Xref taxpayer identification number (TIN)] and any other account module) prior to the transfer to the XSF. TC 971 AC 296 is a final audit trail that indicates that all available research sources have been used.

    Note:

    The TC 971 AC 296 will let other IDRS users know that all research of the primary and related TINS have been thoroughly researched to determine the placement of the credit(s) and thereby eliminate the duplicate efforts of researching the same credit(s).

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. If further information is needed from the taxpayer to resolve the credit, in addition to any letters that may have been issued, a telephone contact with the taxpayer to determine proper disposition of payment or credit must be made or attempted, prior to transferring the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to XSF.

      Exception:

      Beginning January 1, 2013, for Form 8758 received from AMRH and Statute functions, the tolerance will not apply for resolving cases. To distinguish these forms from other functions, they will have a notation in Box 16 stating "AMRH Team" or "Statute Team." Reject any case back to the originator if there is no evidence that a phone call was initiated to resolve these function's cases.

    2. Internet research should be used by all business operated divisions (BOD) in an attempt to locate taxpayers. Several sites (Accurint, Google, SEC, ZABASearch, EDGAR, VIVISIMO and SWITCHBOARD) can be used to locate a phone number or address if one cannot be obtained through IDRS or Directory Assistance.

      Note:

      If correspondence or telephone contact was not needed to resolve the credit, notate "No follow-up action with taxpayer is required."

    3. Must have originator's manager's signature of approval certifying that appropriate research has been exhausted prior to XSF application in the remarks section of Form 8758.

3.17.220.1.6  (08-16-2013)
Related IRMs

  1. The following manual sections are frequently used in conjunction with this IRM or may be used as resources:

    1. Document 12990, Records and Information Management Records Control Schedules

    2. IRM 11.3.1, Introduction to Disclosure

    3. IRM 11.3.3, Disclosure to Designees and Practitioners

    4. IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria

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

    6. IRM 3.17.30, SC Data Controls

    7. IRM 3.17.41, Accounting and Operating Reports

    8. IRM 3.17.63, Redesign Revenue Accounting Control System

    9. IRM 3.17.79, Accounting Refund Transactions

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

    11. IRM 3.17.243, Miscellaneous Accounting

    12. IRM 21.1.1.7, Communication Skills

    13. IRM 21.1.3, Operational Guidelines Overview

    14. IRM 21.2.4, Master File Accounts Maintenance

    15. IRM 21.3.3, Incoming and Outgoing Correspondence/Letters

    16. IRM 21.4, Refund Inquires

    17. IRM 21.5, Account Resolution

    18. IRM 21.6, Individual Tax Returns

    19. IRM 21.7, Business Tax Returns and Non-Master File Accounts

    20. IRM 25.6, Statute of Limitations

    21. IRM 2.3, IDRS Terminal Responses

    22. IRM 2.4, IDRS Terminal Input

    23. IRM 2.9.1, Integrated Data Retrieval System

    24. Document 6209, IRS Processing Codes and Information

  2. Other manuals which are helpful in program operations will be mentioned throughout the text.

3.17.220.1.7  (01-01-2012)
Taxpayer Advocate Service Case Procedures, National Service Level Agreements (SLAs)

  1. Taxpayer Advocate Service (TAS) has service level agreements (SLAs) with Wage and Investment (W&I), Small Business/Self Employed (SB/SE), Large Business and International (LB&I), Tax Exempt/Government Entities (TE/GE), Criminal Investigation (CI), and Appeals, to ensure that standards are established within the business operating divisions/functions to process TAS casework when the authority to complete transactions rests with the division/function.

  2. The SLAs are located on the TAS intranet homepage under the heading "Service Level Agreements."
    (http://tas.web.irs.gov/policy/sla/default.aspx). See also IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

3.17.220.1.8  (01-01-2014)
IRM Acronyms and Glossary of Terms

  1. The following is a glossary of terms:

    Acronym/Term Definition
    Account 2340 Photocopy Fees
    Account 2350 Public Debt
    Account 2360 Conscience Fund
    Account 2380 Installment Agreement New
    Account 2385 Installment Agreement Reinstated
    Account 4620 Unidentified Remittances
    Account 4710 Offers In Compromise
    Account 6310 Miscellaneous Fees
    Account 6400 Miscellaneous Revenue Collections
    Account 6800 Excess Collection
    Account 6810 Unapplied Statute Expired Credit
    Account 9999 Revenue Clearance Accountability
    Account Management Services Account Management Services (AMS) formerly known as "Desktop Integration or DI" provides a common Interface that allows users of multiple IRS systems to view history and comments from other systems and to access a variety of case processing tools without leaving AMS.
    Agency Location Code (ALC) A code assigned by Treasury to each campus for deposit and disbursement activity.
    Annotate To note the action taken in the case file
    Automated Non-Master File (ANMF) Automated Non-Master File is a collection of revenue accounting transactions providing a means for the assessment of taxes and collection of revenue.
    Area Office An office of Internal Revenue Service located in a principal city within each state or part of the state
    Assessment Amount of tax charged to the taxpayer's account
    Business Master File (BMF) A magnetic tape file containing (BMF) information on each taxpayer's business returns and related documents
    Customer Account Data Engine (CADE 2) Beginning in January 2012 with CADE 2 deployment, IMF will process and post individual taxpayer submissions on a daily basis. Only accounts and transactions that have met specific criteria will process and post daily. The remaining accounts and transactions will resequence until the end of the cycle.
    • With the implementation of CADE 2, the campus cycle will change. The cut off for the week’s processing will move back one day, from Thursday night to Wednesday night for all Master Files. This change allows all Master Files (IMF, BMF, etc.) to be processed by IDRS weekend analysis one week earlier.

    • IMF - Daily posted transactions will be updated and available for viewing on CFOL by 6 a.m. the next business day after IMF processing, and available on IDRS by 6 a.m. the following business day providing posted information sooner.

    Calendar Year (CY) A tax year ending on December 31
    CDDB The Custodial Detail Data Base is a system created to track all individual payments that comprise a deposit ticket.
    Command Code (CC) A five- or six-character code used to initiate contact with IDRS
    Control D / WebAccess Server Accesses reports via the Internet which allows the user to view reports using sophisticated viewers, filters and indexing capabilities
    Credit (CR) An amount paid or transferred as payment to an account
    Credit Balance A condition in which the amounts of credit on a tax account exceed the balance due
    CSCO Compliance Services Collection Operations
    Collection Statute Expiration Date (CSED) The last date IRS has to collect on an outstanding balance due on an account, usually ten years from the assessment date.
    Debit (DR) The amount owed on an account
    Debit Balance A condition in which the balance due exceeds the total amount of credits
    Deposit Ticket Standard Form (SF) 215A which is prepared to deposit each day's balanced remittances
    Designated Payment Code (DPC) A two position numeric code designating either the source of a payment or the type of tax liability (levy, seizure, installment, etc.) the payment is to be applied against.
    DPCs 04, 05 or 06 on a line with TC 670, 680, 690, 694 or 700 on CC TXMOD, indicates a payment made by levy.
    DPC 09 indicates an offer in compromise payment.
    Desktop Integration Desktop Integration (DI) system provides a common interface that allows users of multiple IRS systems to view history and comments from other systems - Renamed to Account Management Services (AMS) in FY 2009.
    Document Locator Number (DLN) A controlled number assigned to every return or document input through the ADP system
    Document A tax return, schedule or paper which establishes or affects a taxpayer's account
    Document Code (or Doc Code) The 3rd and 4th digits of the DLN
    Enterprise Computing Centers (ECC) Effective June 27, 2004, the Martinsburg and Tennessee Computing Centers (previously named MCC and TCC) were realigned into this one organization. Specific sites will be referred to as ECC Martinsburg or ECC Memphis.)
    ECC-MEM ECC Memphis
    ECC-MTB ECC Martinsburg
    Electronic Funds Transfer (EFT) Payments made through EFTPS are given a 15 digit EFT number by the Treasury Financial Agent (TFA).
    Electronic Federal Tax Payment System (EFTPS) The following types of payment methods fall within this category: ACH Debit, Fedwire, ETA/Fedline, DDIA, Credit Card, Debit Card, RRB Link, Government and E-File Debit.
    Excess Collections File (XSF) Accounts 6800 and 9999 residing in a paper file until January 9, 1989; replaced after that date by the XSF on IDRS. A file within the IDRS containing non-Revenue Receipts which cannot be identified or applied. Each record within the file contains the XS control number, amount of credit, type of credit, received date and other identifying information, if known. XSF reflects contents of Accounts 6800 and 9999 less than seven years and more than one year after the IRS-received date except in true statute cases, where it may be under one year.
    Expedite To speed up processing of any urgent document
    Federal Tax Deposits (FTD) A system whereby taxpayers are required to make deposits of trust fund monies through local or commercial banks. These deposits are forwarded to Treasury, placed on a magnetic tape and then shipped to ECC for posting to the taxpayer's account. The FTD PATAX system was decommissioned, January 1, 2011. FTD payments are required to be made electronically and processed through EFTPS.
    File Location Code (FLC) The first two digits of the DLN assigned to identify the area office related to the processing IRS campus
    Fiscal Year A tax year covering any twelve month period other than a calendar year
    Form 4830, IDRS Posting Document Received monthly for each record dropped from the URF to XSF 6800
    Form 8758, Excess Collections File Addition Prepared to request inclusion of a credit on the XSF and to debit the account from which it is to be transferred
    Form 8765, IDRS Control File Credit Application Prepared to request application of a credit from the XSF or the URF
    Form 8766, Excess Collections File (XSF) Worksheet Completed to record research performed on credits added to the XSF using CC XSADD
    Freeze A restrictive action applied to a Master File account to prevent normal computer actions of offsets, refunds or notices sent to the taxpayer
    Freeze Code A transaction code used to freeze a taxpayer's account
    Government On-Line Accounting Link System (GOALS) A Financial Management Service (FMS) system which allows agencies to report and view the financial information reported to treasury
    Integrated Data Retrieval System (IDRS) A computer system with the capability to instantaneously retrieve or update stored information which works in harmony with the Master File system of taxpayer accounts
    Individual Master File (IMF) A magnetic tape file containing information concerning all taxpayers who file individual tax returns
    Input Documents Approved documents which contain information to be fed into the computer, such as tax returns, posting vouchers and Form 8758 and Form 8765
    Intra-Governmental Payment and Collection (IPAC) This is a major component of the GOALS II System. It provides a standardized interagency fund transfer mechanism for Federal Program Agencies (FPAs).
    Individual Retirement Account File (IRAF) A magnetic tape file containing information containing individual retirement accounts - Refers to MFT 29 records. As of January 01, 2005, IRAF merged into IMF - Also known as IMF IRAF.
    Journalization The process of debiting and crediting General Ledger accounts - Every tax transaction that involves money must be journalized to maintain accounting control.
    Julian Date A system of numbering the days of the year from 001 through 365 (or 366)
    Letter 1687C Sent to the taxpayer for information about the proper application of a credit from the XSF
    Letter 2349CG Sent to taxpayer to inform him/her of the particular application from the Excess Collections File (XSF)- Generated through CC XSAPL
    Lockbox The process whereby remittances and documents are mailed to a designated P.O. Box at a commercial bank. The remittances are deposited in an expedite manner with immediate credit availability for the Treasury. Source documents are processed simultaneously and forwarded to campuses.
    Magnetic Tape (Mag Tape) Plastic tape, coated with magnetic material, on which information is recorded by a process of electrical impulses forming minute polarized characters - The tape is used in computers and is much the same as that used in a standard tape recorder.
    Master File (MF) A magnetic tape record containing entity and accounting information concerning taxpayer's tax returns and related documents, including Business (BMF) and Individual (IMF)
    Master File Tax Code (MFT Code) A two-digit number which identifies the type of tax. (e.g., Form 1040 is MFT 30)
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    Name Control The first four characters of the principal name of the taxpayer - Blank spaces will be included if the principal name consists of less than four characters.
    Non-Master File (NMF) A file containing records of accounts for which manual procedures must be maintained
    Non-Revenue Receipts Payments received for items other than taxes, i.e., bulk forms, photocopy fees, court fines, installment user fee, erroneous refund repayments, etc.
    Notice 942, Proper Credit For Your Tax Payments Notice to be sent to taxpayer who did not sufficiently identify his/her payment to allow prompt crediting of the correct account - Will advise appropriate taxpayer action to facilitate crediting of subsequent payments - To be sent only with Letter 2349CG
    Offer In Compromise (OIC) A proposal for settlement of tax liability for an amount less than that previously assessed (or unassessed) or a liability for specific penalties assessed (or unassessed).
    Pending Transaction A transaction input to IDRS but not yet effective at the Master File Account
    Period Ending The ending year and month indicating the period covered by a tax return; e.g., 200809 indicates a return for the period ended September 30, 2008.
    PMTEXPCSED A Payment Expired CSED (PMTEXPCSED) transcript will generate when a payment is applied to a module after the Collection Statute Expiration Date (CSED) has expired.
    Record Control Schedule (RCS) Document 12990, Records and Information Management Records Control Schedules provides mandatory instructions for what to do with record and non-record materials no longer needed for current Government business.
    Received Date The earliest date received by any IRS office or function that can accept tax returns
    Reconciliation Resolving discrepancies within the total document count and money amount for each block
    Refund Money returned to the taxpayer as a result of overpayment of a tax liability - Usually not done if the taxpayer has any other outstanding liability against which the overpayment can be credited.
    Remittance Amount An amount of money received in payment to taxes - may be a check, money order, cashier's check, or cash
    Remittance Transaction Research System (RTR) This application consolidates all Integrated Submission Remittance Processing and Lockbox Bank remittance transaction data and images and makes them available to authorized users who need to research remittance transactions.
    Reject A transaction which did not post to an account because of incomplete information
    Retention Register Microfilm record of old accounts that have been removed from the active Master File through the multi-year levelling process
    Servicewide Electronic Research Program (SERP) A servicewide electronic research portal designed to provide employees access to IRMs and other reference materials and can be accessed at (http://serp.enterprise.irs.gov/)
    SSNER-2DB/ECP SSN Elimination & Reduction 2-D Barcode project implementation consists of the elimination and reduction of the SSN and the creation and application of a 2D barcode on outgoing individual taxpayer notices. Barcodes on the incoming notices will be read using handheld scanners.
    Statute of Limitations The Internal Revenue Code states that the IRS will assess tax, refund credit and collect taxes within specific timeframes. These limits are known as "Statute of Limitations." The determination of a statute expiration differs for assessment (ASED), refund (RSED), and collection (CSED).
    Tax Account A record of all tax data recorded on the Master File, showing all classes of tax and all tax periods identified by one Taxpayer Identification Number (TIN). Separate tax accounts are maintained on the Business Master File (BMF) and the Individual Master File (IMF). A person who has both an individual account under their Social Security Number (SSN) and a business account under their Employer Identification Number (EIN) has at least two separate tax accounts.
    Tax Class Code A single-digit numeric which identifies the type of tax a transaction involves
    Tax Module A record of tax data for a taxpayer covering only one type of tax for one tax period - A module consists of the MFT Code and the tax period (e.g., 30 [Form 1040] for 201112)
    Tax Period A six-digit numeric in year and month format (YYYYMM) which identifies the time covered by a return or an account. (e.g., tax period ending December, 2011, would be 201112)
    Taxpayer Advocate Service (TAS) Program The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.
    Taxpayer Identification Number (TIN) Every taxpayer has a permanent number for identification of their tax account. The Employer Identification Number (EIN) is used to identify taxpayers on the BMF. The Social Security Number (SSN) is used as the account number of the taxpayer on the IMF. The format of these numbers is:
    EIN XX–XXXXXXX
    SSN XXX–XX–XXXX
    Taxpayer Information File (TIF) A record of tax data under a specific taxpayer identifying number
    Trace ID Number The CDDB mechanism that identifies each Deposit Ticket and its corresponding payments is a 20 digit number made from 14 characters related to the corresponding Deposit Ticket and six characters representing the Detail Payment Transaction Record for an individual payment.
    Transaction Code (TC) A three-digit numeric which defines the precise nature of the transaction. For example, TC 150 indicates "Return Filed and Tax Liability Assessed." Refer to Document 6209, IRS Processing Codes and Information, for a listing of transaction codes.
    Twenty-Three C (23C) Date The date a liability is assessed
    Unidentified Remittance (UR) A remittance received by the IRS which cannot be positively identified and/or applied to its proper account
    Unidentified Remittance File (URF) A separate file within IDRS containing all remittances received which cannot be immediately identified or applied. Each record within the file contains the UR control number, amount of remittance, type of remittance, received date, taxpayer's name and other identifying information, if known.
    Unpostable (UP) Transactions which do not post at the Enterprise Computing Center (ECC) because of an inconsistency with the Master File
    Validation Digit Indicates whether a SSN is valid or invalid - There are two digits:
    0—Valid SSN. Indicates that this SSN and name control match on the Social Security Administration records.
    1—Invalid SSN. Indicates that the SSN and name control failed to match Social Security Administration records.
    XSF Excess Collection File - A control file within IDRS containing all non-revenue receipt credits that cannot be identified or applied to their proper tax account. XSF contains both Account 6800, Excess Collections, and Account 9999, Revenue Clearance Accountability, data for seven years after the entry date of the payment to the XSF.

3.17.220.1.9  (01-01-2012)
Trace ID Number for Tracking Credits

  1. As of January 1, 2008, all credits and payments were assigned a Trace ID Number for tracking purposes. The Custodial Detail Data Base (CDDB) was established with the EFTPS payments January 1, 2006. CDDB will track all individual transactions against the Deposit Ticket totals, which have been entered in the Redesign Revenue Accounting Control System (RRACS) General Ledger. The Trace ID Number shows all credits/payments to be identified and added to the CDDB.

    1. For systems that create a Deposit Ticket, a 14 character Trace ID Number will be generated and printed on the Deposit Ticket.

    2. Deposit Tickets manually created will receive a Trace ID Number through Batch Block Tracking System (BBTS).

  2. The format for a Trace ID Number that is to be included in all Deposit Tickets (14 digits) and on all Payment Transaction records (20 digits) is:

    Trace ID for Deposit Ticket (first 14 characters)
    Parts Characters Definition
    Site ID NN SP Campus FLC or other Site ID
    System ID NN The values are identified as follows:
    01 - EFTPS
    02 - ISRP Payment Transactions
    05 - Lockbox Bank Transactions
    10 - SITLP Levy Payments
    15 - Receipt and Control Manual Deposits
    20 - RRACS DCF Debit Voucher (DV)
    25 - Accounting Deposit Ticket and DV
    30 - FTD Deposit Ticket/Debit Voucher
    35 - IDRS IA User Fee Sweep
    40 - Automated Insolvency Manual DT
    45 - Automated Offer in Compromise Manual DT
    50 - ITIN
    55 - Field Assistance (Share) Function, Taxpayer Assistance Center
    Deposit Date YYYYDDD Julian Date
    Seq Number NNN For each Deposit Date, begin with 001 and increment each additional Deposit by 1.
    Last field for Detail Payment Transaction Record (6 characters)
    Transaction Seq Number NNNNNN Or zero For each payment summarized in a Deposit Ticket, beginning with 000001, sequentially increment the Transaction Seq Number.

  3. Each payment added to the XSF with CC XSADD, will need the Trace ID associated with the payment on Master File. The Trace ID should be entered in Box 21 of Form 8758.

3.17.220.2  (01-01-2014)
Excess Collections File

  1. General—The Excess Collections File (XSF) is a file within IDRS containing all non-revenue receipt credits received since January 1, 1989, in Accounts 6800, Excess Collections, and 9999, Revenue Clearance Accountability. Credits which have IRS-received dates more than one year prior to the current date may be added to the XSF. Also, credits with document (doc) codes 48, 58 and 65 and those representing "true" assessment statute cases may be added to the XSF regardless of age.

    1. Items dropped from the Unidentified Remittance File to Account 6800, Excess Collection, after September 30, 1988, are part of the XSF.

    2. Campuses were encouraged to add other credits received in the paper Excess Collections file since October 1, 1988, to the XSF using CC XSADD to make available on IDRS all pertinent FY 1989 information.

    3. At campus option, other credits in the paper Excess Collections file which have IRS-received dates more than one year prior to the current date may be added to the XSF using CC XSADD to make them available for research on IDRS. Credits having doc codes 48, 58 and 65 and those representing "true" assessment statute cases may be added to the XSF regardless of age.

  2. The paper Excess Collections file will remain in existence until the items therein are credited to their proper accounts or reach the retirement and destruction ages specified in Document 12990, Records and Information Management Records Control Schedules. Closures from the paper Excess Collections file will be made through the XSF.

  3. XSF credits will be in Account 6800 (Excess Collection) for up to one year and then be in Account 9999 (Revenue Clearance Accountability). All credits will automatically be transferred from Account 6800 at the end of each fiscal year. Unapplied credits will remain on IDRS in the XSF seven years after the entry date of the payment to the XSF. They will then appear on a dropped listing (XSF 50).

  4. Each record within the XSF contains the control number; amount and source of the credit; IRS-received date; status code and other available payment and follow-up information.

  5. XSF provides a rapid research tool for payment tracing which is available to all areas serviced by the campus.

  6. XSF provides registers and listings for journaling, controlling and balancing. See IRM 3.17.220.2.16 for a description of available XSF computer-generated reports.

  7. XSF records are established, corrected and applied only by the Campus Excess Collections function using IDRS formats to be described later in this handbook. Instructions on the operation of IDRS and use of CCs are in IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input.

    1. Automatic establishment of some XSF records occurs through aging from the Unidentified Remittance File (Account 4620 ) and through the systemic transfer of statute expired TC 806 and TC 768 credits (STEX55) from the IMF.

    2. Other sources of credits to be added to XSF include Accounts Maintenance, Adjustments, Area Office, Non-Master File, FTD, Collection, Rejects and Unpostables functions which will request the necessary actions from the XSF function.

    3. Applications from XSF may be requested of the XSF function by any functional area serviced by the campus.

  8. Just as its sister program, URF, the IDRS XSF contains four files on disk. They are:

    1. the XS Control Number File, which contains the actual XSF data

    2. XS Name

    3. XS Amount

    4. XS TIN Files, which contain partial key data used to facilitate access to the XS Control Number File.

  9. Subsequent IDRS activity with the XSF is automatically recorded by the computer, and, if appropriate, balance amounts are also adjusted, thus becoming the official XSF. Items will be removed from the open file at the time the case is closed on IDRS or when more than seven years have passed since the entry date of the payment. Credits removed from the XSF will usually have exceeded the statute of limitations for refund.

  10. Supporting paper files will be maintained only for the records added to the XSF via CC XSADD, URF drops prior to completion of research in the UR function and credits which have been applied. These files will contain relevant case records such as history sheets, paper requests with documentation, transcripts, correspondence, etc.

  11. Closed cases will be included in quality review.

  12. Route closed cases to Files in folders other than IDRS source document folders. Frequency and manner of transfer may be arranged locally between the XSF function and Files to ensure that records are retained as described in Document 12990, Records and Information Management Records Control Schedules.

  13. Retire closed case files to FRC one year after closed (applied or dropped from the XSF) as indicated by appearing on XSF Dropped Listing.

  14. Destroy closed case files five years after end of processing year.

  15. Daily inventory analysis report (URF01 (XSF)—Excess Collections function copy)–destroy after end-of-month balancing operations.

  16. Monthly inventory analysis report (URF01 (XSF)—Excess Collections function copy)–destroy 18 months after end of processing year or one year after internal audit of operations and accounts, whichever is earlier.

  17. Dropped listing (XSF50—Excess Collections function copy)–

    1. Destroy 7 years after end of processing year.

  18. Dropped listing (RRACS Function copy)—destroy after 60 days.

  19. The following program codes should be used:

    1. All work performed on XSF or on the paper Excess Collections files in the Excess Collections function will be charged to program code 37600.

    2. Work performed on the "OPEN" status review will be charged to program code 37605.

3.17.220.2.1  (03-01-2013)
Receiving Excess Collections File Cases

  1. Credits will be automatically added to the XSF when they drop from the URF.

    1. These items will appear on the XSADD listing (URF03 (XSF)).

    2. These items do not require research or establishment of case files.

      Exception:

      URF drops before research has been completed or exhausted in the Unidentified Remittance function.

    3. Items dropped from the URF will retain their UR control numbers—most will be unique Document Locator Numbers (DLNs) showing Tax Class "0" and Document Code "09." See Figure 3.17.220-1.

      Figure 3.17.220-1

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Unidentified Remittance Control Number

    4. Records dropped from the URF will be automatically categorized as source code "UR." "UR" cannot be used when assigning a source code through CC XSADD. A Form 4830, IDRS Multi-Purpose Posting Document, is generated for each credit dropped from the URF to the XSF as shown in Figure 3.17.220-2, and should be associated with the URF case. See IRM 3.17.10.3.14(5), Closing and Post Closing Procedures.

    5. If the URF research has been completed or exhausted, the source code should be changed to IDEN. File the case with the Form 8758. This keeps the item from printing on the OPEN listing for XSF review. See IRM 3.17.220.2.15.

    6. From December 1, through April 30, 2012, cases were received in Fresno or Cincinnati from External Bank Leads Program located in IVO, formerly AMTAP, which represented returned refunds from various banks. IVO employees performed research and bank contact to resolve the refund. If IVO was unable to identify and apply the credit, they routed to URF as External Leads Processing (ELP). All documentation should have been received from IVO stating they were unable to identify and apply the credit through research with the bank and added to URF as IDEN. (These cases will not show up on the open listing.) The credit was to remain in the URF unless bank leads reversed their entry. After May 1, 2012, Accounts 4430/4971 are used for ELP. For refunds deposited after May 1, 2012, transfer the credit to the 4430/4971 Account. The remarks should contain "ELP deposited after May 31, 2012".

    Figure 3.17.220-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 4830

  2. As of January 1, 2000, statute expired (STEX) IMF credits (TC 806, Credit for Withholding Taxes and Excess Federal Insurance Contributions Act (FICA), and TC 768, Earned Income Tax Credit, only) are systemically transferred from the Individual Master File to the XSF.

    1. Credits will be transferred weekly.

    2. After credits have been added to the XSF, the system will automatically generate a pending TC 820 and TC 570 to the IMF (with Document Code 58). An Excess Collection Indicator of "1" will also generate to the module from which the credit is being moved.

    3. STEX credits can be identified on CC XSINQ by an indicator of "S" . The remarks line will state "ACCT ADDED TO XSF. BATCH RUN XSF55."

    4. The original DLN of the credit on the account from which it is transferred to XSF will become the XSF control number.

    5. If several credits having the same DLN are transferred to the XSF from one taxpayer's account, the system will generate a renumbered excess control number showing Tax Class "0" and Document Code "09" .

    6. A listing entitled "STEX CREDITS ADDED-XSF55 " will be generated which will list all STEX credits added by control number and amount. A summary page showing the total number and total amount of STEX credits added will also be generated. See Exhibit 3.17.220-3.

    7. STEX credits will be automatically categorized as source code "ST" and status code "FROZ" .

    8. These credits do not require research or establishment of case files.

    9. A listing showing detailed information concerning each credit transferred from the IMF to the XSF will be generated. The listing must be maintained by the XSF function and retained in accordance with Form 8758 retention guidelines. See Exhibit 3.17.220-4.

    10. For balancing purposes, a copy of the listing must be forwarded to RRACS. See IRM 3.17.220.2.5.

    11. A separate line item for STEX cases will be present on the URF01 (Excess Collections 6800 File Analysis Report and Excess Collections 9999 File Analysis Report). See Figure 3.17.220-12.

    12. A separate error register will be generated for STEX cases. Duplicate DLN errors will be resolved by the Excess Collection function. Coordination should be made with the Statute function to resolve all other errors. See Exhibit 3.17.220-4.

    13. All Form 8765 received requesting transfers of STEX credits from the XSF must be approved by the Statute function as outlined in IRM 3.17.220.2.7.1.1.1. Annotate in the remarks area on Form 8765 "STEX CREDITS FROM MF" since there is no supporting documentation or case file established for these cases.

  3. Receive the remaining credits to create the XSF from other functional areas of the campus on request Form 8758, Excess Collections File Addition. See Figure 3.17.220-3.

    Note:

    Form 3809, Miscellaneous Adjustment Voucher, may not be accepted for adding a record to the XSF. Return all Form 3809 to their originators.

3.17.220.2.1.1  (08-16-2013)
Preparation of Form 8758

  1. Form 8758 mirrors the CC XSADD format as closely as possible. A separate Form 8758 must be used for each credit which is to be moved to the XSF. "Lumping" credits from the same account obscures the individual amounts and the IRS received dates. See Figure 3.17.220-3 for Form 8758.

    Figure 3.17.220-3

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8758–Excess Collections File Addition

  2. Instructions for preparing Form 8758 are outlined below.

    Note:

    There are "Required" and "Optional" entries. An "Optional" entry is not optional if information is available to the originator with the exception of Form 8758 where the Source Code is "ST" and the Status Code is "FROZ."

    Item # Name Required or Optional Description
    1 Document Locator Number Required a. This 14–digit entry is the original DLN of the credit on the account from which its transfer to XSF is requested and will usually become the XSF control number.
    b. If the original DLN is not used as the XSF control number, it should be the second entry on Line 9 ("PAYMENT INFORMATION" ) of the CC XSADD format adding the credit to the XSF.

    Note:

    The reason for transferring to XSF should be the first entry on Line 9.

    2 Renumbered DLN Optional If completed, this 14–digit optional entry is the XSF control number.
    a. If several credits having the same DLN are transferred to the XSF from one taxpayer account (e.g., TC 640 and TC 680), use the DLN with the tax or "real" credit. After verifying that it is a true duplicate, assign the DLN, changing the first digit of the blocking series to the next higher number, to the addition to the tax or "generated" credit (e.g., TC 680). Change the first digit of the blocking series on credits from a reactivated retention register account.
    b. For FTD/EFTPS payments received prior to October 22, 2012, insert the last five digits of the Treasury United States (TUS) number or EFT Trace number into digits nine through 13 of the original DLN which may be shared with a number of FTD/EFTPS payments. This will create a unique control number which reflects the credit's origin.
    c. If the credit has no prior DLN, refer to Figure 3.17.220-4 as a guide to form a DLN, restricting the block number to "800" and above.
    d. Cases received with out of campus DLNs should not be transferred to the campus that received the payment. Add the credit to the XSF using the "dump" area office code.
    3 Source Code Required This two–character entry identifies organizationally from where the credit is being transferred.
    1. AD—Adjustments

    2. AM—Accounts Maintenance

    3. CO—Collection

    4. DO—Area Office

    5. FD—Federal Tax Deposit (FTD)

    6. NM—Non-Master File (NMF)

    7. OT—Other

    8. RJ—Rejects

    9. ST—Statute (This source code may be changed during analysis by the XSF technician as described in IRM 3.17.220.2.2(6) below.)

    10. NU—Unpostables

    4 Status Code Required This four–character entry will be either " FROZ," "OPEN" or "IDEN." "OPEN" will be assumed if no entry is made. This data element may be changed during analysis by the XSF technician as described in IRM 3.17.220.2.2.
    1. If "FROZ" (frozen) is used, Source Code must be ST and documentation explaining status must be notated on Form 8758. If a payment or return was received prior to the statute expiration date and return was not assessed, documentation such as a copy of Form 1040X, must be attached to Form 8758.

    2. If "IDEN" (identified) or "OPEN" are used, documentation must be notated and attached to Form 8758 explaining why this credit cannot be applied to the correct account.

    3. This data element may be changed during analysis by the XSF technician explained in IRM 3.17.220.2.2.

    5 Employee Assignment Number Optional This 10–digit entry is added by the XSF function if the case is to be assigned to an employee other than the person entering the credit to the file using CC XSADD.
    6 Debit Transaction Code Required This three–digit entry is to be selected from Exhibit 3.17.220-5 as the debit valid with document codes 24, 48 or 58 which best reverses the credit to be added to the XSF. Be certain that the selected primary transaction code is compatible with the credit's MFT and doc code.
    7 Dollar Amount of Credit Required This is the amount of credit to be added to the XSF. The amount is to represent a single credit on the account from which it is moved.
    8 TC 570 Indicator Optional Check the box to input TC 570 as a secondary transaction to the master file. When it is necessary to debit any credits in a multiple-credit transfer from a single master file account module to the XSF, this box must be checked.
    9 Payment Type Required This two-character entry designates the type of remittance received.
    1. BC—Business Check

    2. CA—Cash (including cash conversions)

    3. CC—Cashier's Check

    4. FD—Federal Tax Deposit (including Certificates of Deposit)

    5. GC—Government Check

    6. MO—Money Order

    7. PC—Personal Check

    8. UK—Unknown

    9. WH—Withholding

    10 IRS Received Date Required This is the eight-digit entry in month, day, year format (MMDDYYYY, e.g., January 5, 2011, is 01052011). This entry should reflect the return due date (RDD) for TC 806 (prepaid withholding and excess FICA payments). For carryback credits, use the availability date of the credit. Use the actual IRS received date, i.e., the earliest date recorded by any IRS office, for all other credits.
    1. Do not add credits less than one year old (computed from the IRS-received date) other than Doc Code 48, 58 or 65 to the XSF. For accounting purposes, they must be added to the URF.

    2. "True Statute cases" —CC XSADD will accept credits with received dates less than one year old when source code "ST" and status code "FROZ" are used. The statute of limitations for assessments may have expired either before the taxpayer filed an amended return or made the payment or after the amended return was filed or the examination determination was made and, due to employee error, the assessment was not made.

    11 Actual IRS Received Date Optional No entry is required
    12 Name Line 1 Required Entry limited to 35 characters
    13 Name Line 2 Optional Entry limited to 35 characters
    14 Street Address Optional Entry limited to 35 characters
    15 City, State, ZIP Code Optional Entry limited to 29 characters
    16 Reason For Transfer To XSF (History) Required Entry limited to 70 characters

    Note:

    This should be the first entry on Line 9, Payment Information, of the CC XSADD format adding the credit to the XSF. If needed, add plan/report number.

    17 Taxpayer Identification Number Required Entry limited to 12 characters
    18 EFTPS Indicator Required Check the box if this is an EFT payment
    19 MFT Code Required Entry limited to two characters.
    20 Tax Period Required Six–digit entry in year and month format. (YYYYMM: e.g., January 2011 is 201101).
    21 Trace ID Number Required Trace ID Number for credits dated after December 31, 2007. See IRM 3.17.220.1.9 for additional information on Trace ID Number.
    22 Preparer Name Required Name of preparer of Form 8758. (Please Print)
    23 Preparer's Employee Number Optional Employee number of preparer of Form 8758.
    24 Campus Required IRS Campus of preparer of Form 8758.
    25 Team Name Required Functional area of preparer of Form 8758.
    26 Team Fax Number Optional Fax number of the functional area of the preparer of Form 8758.
    27 Stop # Required Employee IRS Stop number of preparer of Form 8758.
    28 Phone # Required Employee telephone number of preparer of Form 8758.
    29 Date Optional The date that the Form 8758 is prepared.
    30 Research Prior To Transfer Required This entry should reflect research performed in the originating function.
    1. Copies of pertinent documents such as transcripts and taxpayer correspondence should be attached to the completed Form 8758 when required.

    2. If RTR is accessed, the RTR print should be included, except for barred/expired statute credits.

    3. The originator of Form 8758 should include the IRM reference authorizing amounts that are below tolerance to be added to the XSF.

    4. If EFT payment that is not expired, be sure to include CC EFTPS research and OSPC contacts.

    5. When Command Codes are researched, list command code used and analysis of findings.

    6. Correspondence issued will be listed and if required, a copy attached.

    7. If telephone call or correspondence made to taxpayer, name and phone number of contact and/or letter will be listed.

    8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ originator's manager's signature of approval is required in this section and if correspondence or telephone contact was not needed to resolve the credit, notate: "No follow-up action with taxpayer is required."

    31 Research by Excess Collections Personnel Required Be as specific as possible so that your manager or subsequent technician can easily determine the actions you take.

    Reminder:

    Although the address (street address, city, state and ZIP) is not required when completing Form 8758, you must research for an address and update Form 8758 and XSF (using CC XSENT) when sending out correspondence.

  3. Below is an example of the XSF Control Number that is to be created when the credit has no prior DLN. The blocking series is restricted to 800–900.

    Figure 3.17.220-4

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    XSF Control Number

3.17.220.2.1.2  (10-22-2012)
Form 8758 Reason for Rejection

  1. Form 8758 is reviewed by XSF personnel prior to the addition for accuracy, completeness and proper documentation. XSF will reject back to the originator when line items and documentation is incorrect, incomplete or missing. The following items will be cause for rejection of Form 8758:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ :

      • When further information was needed from taxpayer to resolve the credit, no indication that telephone contact was made, or attempted, prior to transferring the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to the XSF or notation that contact was not needed to resolve. This is in addition to any letters that may have been issued to the taxpayer.

      • Internet research should have been used by all BODs and notated on Form 8758 when attempting to call taxpayer.

      • Must have the originator's manager's signature of approval notated in Box 30, Manager's Signature, on Form 8758 prior to the transfer to the XSF.

    2. No indication of TC 971 AC 296 added to the module whenever taxpayer contact via telephone or correspondence is unsuccessful.

    3. Remarks are unclear as to why the credit was unresolved or assessment was not made prior to the Statute expiration.

      Note:

      Remarks such as "possible barred assessment" are unacceptable.

    4. Documentation is not attached to Form 8758 as required.

  2. See Figure 3.17.220-5 for an example of a Form 8758 which should be returned to its originator.

    1. The IRS-received date is missing.

    2. Since its DLN indicates the same processing year as that in which the Form 8758 was prepared, it is likely that the credit is a revenue receipt, which does not belong in XSF.

  3. Refer to the instructions in IRM 3.17.220.2.1.1(2) for other reasons for rejection of Form 8758.

3.17.220.2.1.3  (01-01-2012)
Excess Collection Case File

  1. The case file documents attempts to resolve the identity of the credit to be applied to the taxpayer's account. The case file may include:

    • Form 8758

    • Copy of Form 3244 Payment Posting Voucher

    • Copy of Form 2158 Credit Transfer Voucher

    • Copy of Form 8765

    • Copy of taxpayer's check (front/back) or RTR print

    • Transcript of the taxpayer's account

    • Historical record of attempts to resolve identity

    • Copies of any taxpayer letters or responses

3.17.220.2.2  (05-10-2013)
General Instructions

  1. For bankruptcy cases only, a hard copy of the IMFOL or BMFOL screen showing the credit being moved must be attached to Form 8758. The IMFOL/BMFOL print can be no more than seven days prior to the receipt date in the XSF Unit or the case will be rejected to the originator.

  2. For all Non-Master File cases, an ANMF transcript must be attached to Form 8758.

  3. In all other cases, the date IMFOL or BMFOL was researched must be noted on Form 8758.

  4. Documentation must also be noted on or attached to each Form 8758 indicating the research performed prior to the transfer request.

    Example:

    Documentation may include taxpayer contact, CCs researched, document/voucher and check copy requests, dates actions are taken and responses received.

    1. Form 8758 received without documentation or without proper completion of all required entries should be returned to the requestor immediately.

      Note:

      For area field office or other campus employees, contact the originator by phone for the missing information and request that it be faxed. If the information is not received within 2 days, send the Form 8758 back to the originator.

    2. Cases received with taxpayer correspondence for which there is no indication of a response being initiated should be immediately returned to the preparer.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. If IVO past or present involvement on the SSN, IRSN or x-ref SSN (IDRS controls of 06500 - 06539, TC 971 AC 134/199/617, Letter 4464C, CP05/05A letter sent) is on the module or on CC ENMOD, return the Form 8758 to its originator immediately.

    Exception:

    Form 8758 payments originating from IVO.

  7. See Figure 3.17.220-5 for an example of a Form 8758 which should be returned to its originator.

    1. The IRS-received date is missing.

    2. Since its DLN indicates the same processing year as that in which the Form 8758 was prepared, it is likely that the credit is a revenue receipt which does not belong in XSF.

    Figure 3.17.220-5

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Rejected Form 8758

  8. The credit should be added to the XSF with source code "ST" in status "FROZ" regardless of where Form 8758 originated if initial analysis upon receipt of Form 8758 within the XSF function reveals that the credit both:

    1. Meets the legal criteria for expiration of the statute for either assessment or credit/refund, "and"

    2. The taxpayer has not been injured through IRS mishandling of his/her case.

      Note:

      Refer to IRM 3.17.220.2.7.1.1.1, Researching Statute-Expired (STEX) Credits for additional instructions.

  9. Before adding the Form 8758 to the file, analysis of expiration dates and the Status Code must be made. If analysis reveals that the credit does not meet the legal criteria for expiration of either statute (RSED or CSED) and this is the reason indicated on Form 8758, return the Form 8758 to the originator.

  10. If the credit meets the legal criteria for expiration of either statute but needs further analysis or research, it should be added to the XSF with source code "ST" in status "OPEN," regardless of where Form 8758 originated.

  11. Credits should be added to IDEN status when:

    1. Credit is identified but cannot be applied (i.e., Legal or procedural restrictions); or,

    2. No further action can be taken by XSF (i.e., Research exhausted and there is insufficient taxpayer information)

      Note:

      TC 971 AC 296 on Form 8758 and on the module indicates an account has been thoroughly researched by the originator prior to the transfer to XSF. If further taxpayer contact or research by XSF personnel may potentially resolve the credit, it should be added as OPEN.

  12. If further research is needed by XSF function to resolve the credit, add to OPEN status in cases where:

    1. Credit can be applied or refunded after identification; or,

    2. Credit requires further research or analysis; or,

    3. Credit requires follow-up contact with the taxpayer. (i.e., Undeliverables, no replies, missing signatures/forms, etc.)

  13. Changes made to Form 8758 during initial analysis within the XSF function as described in (4) above should be made in red and initialed by the technician making the change determination.

  14. As of April, 2000, cases are no longer received from Accounts Management (AM) and Collection when taxpayers do not respond to requests for returns when only a payment/credit is present on the taxpayer's account unless the statute has expired for either assessment or credit/refund. This includes AM-12 and AM-18 transcripts only.

    Exception:

    For AM-18 Accounts with a TC 594, TC 599 or credits with Designated Payment Codes (DPCs) of 04, 05, 16, 18, 20, or 21, Collections should attempt to make contact with the taxpayer prior to any money being moved to XSF.

  15. The FTD PATAX system, was decommissioned January 1, 2011. FTD payments are required to be made electronically and processed through EFTPS. Due to the decommissioning of the system, previously submitted FTD remittance may require adjustment procedures due to bank or taxpayer error. Beginning June 13, 2011, overpayment adjustments may require a manual refund from the XSF back to the financial institution making the FTD.

  16. Requests for refunds will be received from the Hardcore Payment Tracer Function (HPTF) who will monitor all actions and notify the taxpayer if necessary. See IRM 3.17.5, Hardcore Payment Tracers. If the payment is over twelve months old, HPTF will prepare Form 8758, with documentation, to move the overpayment to XSF to refund the overpayment to the financial institution.

    Note:

    Documentation will include:

    • Copy of taxpayer's check

    • Copy of bank statement

    • Documentation of FTD Block research

    • TC 971 AC 296 on taxpayer's account

    • All prints of IDRS command codes utilized

    • Letter from bank requesting credit

    • Remarks indicating “FTD Banking Error” and “Manually Refund From XSF”

  17. Verify all documentation is complete. If not, reject back to originator.

  18. Use CC XSREF to issue a manual refund from the XSF to the Financial Institution. See IRM 3.17.220.2.10, Manually Refunding from the XSF.

  19. Do not issue taxpayer an explanatory letter.

  20. Notify the HPTF function of the completed action.

3.17.220.2.2.1  (01-01-2014)
Identity Theft - General Instructions

  1. Identity theft can affect tax administration in two primary ways:

    • Employment or Income Related - This occurs when the identity thief uses the victim's SSN to obtain employment, resulting in what may appear as unreported income under the victim's account. In addition, a refund return may be filed for which the owner is now required to obtain their own valid SSN information before the refund can be released. See IRM 10.5.3, Identity Protection Program.

    • Refund Related - This occurs when the identity thief uses the victim's SSN to file a false federal income tax return to obtain funds.

  2. The originator of the case will have established that identity theft has occurred prior to the request for the credit/payment to be added to XSF. Examples of cases received representing identity theft may include:

    • Payments from a taxpayer using another SSN for employment purposes and the true owner of the payments cannot be identified.

    • Credits from a refund return where the taxpayer is using another SSN for employment purposes and the true SSN cannot be established.

    • Credits from a returned or cancelled refund where the true SSN owner cannot be identified.

  3. Review incoming Form 8758 labeled as identity theft for:

    • Complete research and documentation attached including any X-ref SSN information

    • Explanation of why credit/payment cannot be applied

    IF THEN
    There is no resolution for the payment/credit:
    • And the source of the credit cannot be legally applied, or

    • Because the true SSN owner cannot be identified, or

    • Because the true owner of a payment cannot be located

    Add credit as status code "IDEN"
    Further action by XSF personnel may resolve the credit/payment Add credit as status code "OPEN"
  4. If there is evidence or documentation that the return may be potentially fraudulent and there is no evidence on the account that the return has ever been reviewed or referred to IVO/CI/Exam or Frivolous, add to XSF and contact HQ Accounting to refer the return to the RICS organization.

3.17.220.2.3  (01-01-2012)
Entering Cases on IDRS

  1. Cases added to the XSF must have an IRS-received date earlier than one calendar year before the current date. The only items allowed on the file with an IRS-received date less than one year old must be document codes 48, 58 or 65 or true statute credits.

  2. After ensuring that credits being transferred to the XSF are still available, add cases received on correctly prepared Form 8758 to the XSF on IDRS entering the appropriate CC XSADD. See Exhibit 3.17.220-6 for CC XSADDM.

    1. Use CC XSADD "M" to add master file credits to the XSF. CC XSADDM will generate the CC XSADD format.

    2. Input "C" in position 7 only to request a new XSADD format when the running item count and dollar amount must be retained for balancing purposes.

    3. Input "Y" in position 11 of Line 4 to retain entity information on the input screen when adding multiple credits for the same taxpayer to the XSF. Inputting the multiple credit eliminates the need to reenter the taxpayer's name, address, TIN and comments each time a credit is added for a given taxpayer.

  3. Exhibit 3.17.220-6 shows an example of a completed CC XSADD format for the Form 8758 shown in Figure 3.17.220-3. The completed pending transaction may be checked immediately using CC TXMODA. The cross-reference MFT and tax period filled with 9s is no longer used to indicate that the credit went to the XSF (effective 1-1-98). The system will automatically generate and post an Excess Collections Indicator of "1" to the module from which the credit is being moved.

  4. Use CC XSADD "R" to add credits from sources other than IMF and BMF to the XSF. CC XSADDR will generate the CC XSADD format. See Exhibit 3.17.220-7. for CC XSADDR.

    Note:

    The CC XSADD "R" format is similar to the CC XSADD "M" format except that, when appropriate, the 1st Name Line may be "UNKN," and only "AMOUNT" will be on Line 3.

    Reminder:

    CCs XSADDM and XSADDR may be used only by the Excess Collections function.

3.17.220.2.4  (01-01-2012)
Excess Collections Worksheet

  1. A worksheet for recording actions taken on the case must be maintained for each XSF record with a source code other than "UR." If minimal or no further research is required, the bottom of the incoming Form 8758 may suffice. See Figure 3.17.220-6 for an example of Form 8758.

  2. For more extensive research, use Form 8766, Excess Collections File (XSF) Worksheet. See Figure 3.17.220-6. Attach Form 8766 to the back of Form 8758 to create the working case file. For additional notes, use the back of Form 8766 or add blank paper, as needed. Documentation should be specific as to the research conducted and the results so that succeeding employees will know what has been done.

    Figure 3.17.220-6

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8766–Excess Collection File (XSF) Worksheet

3.17.220.2.5  (01-01-2012)
Avoiding Accounting Imbalance

  1. As soon as a credit, other than from an IMF or BMF account module, is added to the XSF with CC XSADD "R" , the credit must be moved out of the account, other than 6800 (Excess Collection) or 9999 (Revenue Clearance), in which it is located. Failure to do this will result in a duplicate credit and accounting imbalance.

  2. Verify Form 8758 balance against the XSADD "R" listing (URF03–XSF 6800 or 9999 Add Register) prior to sending to the RRACS Function. The RRACS Function will complete all journalization procedures thereby ensuring that losing accounts are debited.

  3. Additions to the XSF which have been entered using CC XSADD "M" will have the debit portion of the transaction subject to Unpostable Code (UPC) 189 reason code 4. Any debit exceeding the credit balance of the master file account from which the credit came to the XSF will then be checked against credits posted to the master file account. Any debit which does not exactly match the dollar amount of a credit previously posted to the master file account will remain unpostable and be returned to the XSF function for correction. Such unpostables will be voided from the XSF using CC XSOUT "V" and correctly reinput or rejected to their originator within two workdays of their receipt in the XSF function.

    1. Assign a new DLN to any reinput credit using the instructions in IRM 3.17.220.2.1.1(2) and Figure 3.17.220-4 (XSF Control Number). The original DLN will be the first entry in Line 9 of CC XSADD "M" when the credit is reinput.

    2. If research indicates that the matching credit is no longer available on the master file account, reject the Form 8758 to its originator.

3.17.220.2.5.1  (01-01-2012)
Correcting XSADD "M" Input Errors

  1. If amount erroneously input is more than the module balance amount available (and the amount shown on the Form 8758) and the unpostable bypass has been used, the debit transaction will unpost (usually as UPC 194 or 316).

    1. Add a history item (H) to the affected CC TXMOD, indicating CC XSADD $ amount error to be corrected.

    2. Check the CC TXMOD the next workday to find the posting cycle of the debit.

    3. Monitor the CC TXMOD. On the Monday following the IDRS update of the debit's posting cycle, check CCs TXMOD and UPTIN for the unpostable. If the unpostable is on CC UPTIN, immediately input CC UPCAS "Z" with remarks: Amt error, please close to Rej for wash to 6800. The XSF technician should work closely with Unpostables/Rejects personnel to expedite handling of such items to be voided from the XSF.

    4. When the journaled debit to be voided is returned to the XSF, immediately void the erroneous credit using CC XSOUT "V."

    5. Immediately following the void, reinput the correct debit from Form 8758, using a newly assigned DLN (as described in the preparation of Form 8758 for renumbered DLNS at IRM 3.17.220.2.1.1(2)).

    6. Retain an IDRS print of the voided erroneous input in the case file.

  2. If amount erroneously input is less than the module balance amount available (and the amount shown on the Form 8758), the debit transaction will post to the master file module.

    1. Add a history item (H) to the affected CC TXMOD, indicating CC XSADD $ amount error to be corrected.

    2. Check the CC TXMOD the next workday to find the posting cycle of the debit.

    3. Monitor the CC TXMOD.

    4. If the debit unposts for any reason, follow the "MORE than" instructions above to correct the situation.

    5. If the debit posts, immediately input CC XSAPL "M" to return the erroneous credit on the XSF to the master file module, inputting TC 570 to hold the credit. Monitor the pending credit. When the credit posts, immediately reinput the correct debit from Form 8758, using a newly assigned DLN as described in IRM 3.17.220.2.1.1(2) and Figure 3.17.220-4 (XSF Control Number).

      Note:

      Due to the implementation of CADE 2 for January 2012, an IMF transaction may post daily or weekly. Sequence and monitor all actions accordingly.

3.17.220.2.6  (01-01-2012)
Researching the XSF

  1. As soon as a record has been added to the XSF, it is available for research at any IDRS terminal serviced by the campus.

  2. Any function which establishes control bases on its cases and which requests a credit to be added to the XSF may also consult CC XSINQ to determine appropriate closure of its control base.

  3. CC XSINQ researches the XSF by amount of credit, by name control or by DLN. At least one of these data elements must be input. The search is narrowed by using as many of these pieces of information as possible. If the DLN of the credit being searched is not known, using the area office number reduces the volume of matches presented to the researcher from campus-wide to those of the designated area. See Exhibit 3.17.220-8 for examples of CC XSINQ.

  4. To display a particular record, place an asterisk in column 1 next to the chosen record. Transmit after the name control and DLN. When researching by credit amount, other records with the same money amount may be researched without reinputting the entire CC format. A pound sign (#) will appear to the left of the records on which research has been performed.

  5. The IDRS user may go from CC TXMOD to CC XSINQ and back to CC TXMOD without retyping the TIN, tax period and MFT.

3.17.220.2.7  (01-01-2012)
Researching Excess Collections Cases

  1. As stated in IRM 3.17.220.1.3, all CC XSADD cases must be thoroughly researched to the standard outlined for Unidentified Remittance cases in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Within two workdays of their addition to the XSF, substantial research efforts by XSF function, to attain this standard must be initiated. See IRM 3.17.220.1.5 for exceptions. Research will be conducted on items by the XSF function if the Status Code is "OPEN" to determine if the credit can be resolved, regardless of the dollar amount of the item. Both large and small cases are to receive equal attention, but large-dollar cases will be worked first.

  2. The extent of research to be performed on these credits is outlined below.

    1. It is not necessary to duplicate research performed within the last 10 work days.

      Reminder:

      With the implementation of CADE 2 for January of 2012, IMF accounts will be marked as Daily or Weekly. Weekly accounts should be monitored more frequently as transactions may post each day of the week. Sequence and monitor transactions accordingly.

    2. Be sure to coordinate fully with other functions.

    3. Annotate the date the research was performed on Form 8758 (or 8766).

    4. After all research has been completed and any correspondence received from the taxpayer acted upon, delete the employee assignment number from the XSF record using CC XSENT.

  3. Review documentation for cases which can be closed without further research. The originator of the Form 8758 may have missed something which would allow immediate application of the credit.

  4. Check for credits that can be identified as payment for agencies other than the IRS. See IRM 3.17.220.2.13 for further instructions.

  5. Research all remaining XSADD credits on IDRS using all available CCs. IDRS is the place to begin your search for the matching debits. CCs which may be helpful are:

    1. TXMOD to access specific tax modules which contain pending and posted transactions; and to determine the status of an account.

    2. SUMRY to review pending transactions and currently active tax modules under a specific TIN.

    3. NAMES to research a nationwide database (Name Search Facility (NSF) at ECC-MTB) of taxpayers' SSNs or NAMEE to research a nationwide database of EINs. NAMEI (IMF) and NAMEB access the NSF of names and addresses to locate an SSN or an EIN. NAMES and NAMEI search for both the primary and secondary filer names. The hardcopy options are NAMEIX and NAMEBX.

    4. FINDE to research the NSF for the business' name and address information, using the EIN and FINDS to research for the taxpayer's name and address information, using the SSN.

    5. AMDIS to list all records that are on AIMS under the TIN.

    6. INTST to compute the correct outstanding balance, including interest and failure to pay accruals, to the date specified in the CC.

    7. COMPA to compute interest or estimated tax penalty for a specific amount for a specific period of time.

    8. COMPAF to compute failure to pay penalty.

    9. COMPAD displays the detail used to compute the interest.

    10. TDINQ requests display of entity and module date on the TIM which is pertinent to delinquent return investigations.

    11. STAUP is used to update the status of a module and may be used to accelerate, delay or skip routine notice issuance.

    12. ACTON to research case control and history of cases.

    13. LEVYS to research levy source information on the TIF.

    14. IADIS to research installment agreement data.

    15. SCFTR to research SC Control File and overnight research of records that have been moved to the historical SCCF.

    16. CFINK to research the Centralized Authorization File.

    17. UPTIN to research open and closed unpostables for a specific TIN.

    18. INOLE to research the National Account Profile (NAP). This CC is particularly helpful in locating information for all Master File accounts.

    19. BRTVU/RTVUE to provide business return transaction information. It consists of original input return data, including schedules. This return information contains Code and Edit, Error Resolution (ERS), and computer generated fields.

    20. IRPTR (with Definer L) to provide two payee addresses if present, filing status, one payer name and address, cross reference information, and a summary of up to 36 IRP money amounts by income type.

    21. IMFOL will provide nationwide IMF entity and tax data information on-line for tax accounts that are in credit or debit status or that contain freeze conditions or open IDRS control bases. It will also display a list of accounts moved to the retention register. Other accounts that are not on the retention register will be available on-line within 24 hours upon request.

    22. BMFOL will provide business return transaction information. The file consists of original input return data, including schedules. This return information includes Code and Edit, Error Resolution (ERS), and computer-generated fields.

    23. HCFOL (Help) and ICFOL (Information) to assist in the utilization of the CFOL CCs.

    24. EFTPS to request immediate research of the Electronic Federal Tax Payment System (EFTPS), a system for processing tax payments electronically.

    25. TRDBV to access read only tax return information submitted by the taxpayer.

    26. NOREF is used to intercept refunds. For IMF, with the implementation of CADE 2 in January, 2012, if TC 846 has already posted to the account, it is too late to stop the refund via CC NOREF. If the account is on hold, TC 570 or NOREF, definer "P" can be input to prevent the refund from being issued to the taxpayer.

3.17.220.2.7.1  (01-01-2012)
Researching Parent Subsidiary Cases

  1. Research for open liabilities on the parent EIN only. On cases containing the Large Complex Corporation Indicator (identified on IDRS and CC TXMOD as Large CORP CD followed by the campus code), contact the Technical Unit or the locally-designated function working these cases prior to any refund or offset action.

  2. Large Corporation Indicator instructions for "L–coded" returns appear in "Service Center Processing of Priority or Special Cases" in IRM 21.7.1.4, BMF/NMF Adjustment Procedures.

  3. Refer to IRM 3.17.79, Accounting Refund Transactions, and IRM 21.4, Refund Inquiries, for further instructions in processing manual refunds in parent-subsidiary cases.

3.17.220.2.7.1.1  (01-01-2012)
Researching Non Master File (NMF)

  1. The Automated Non-Master File (ANMF) can be used to research NMF data. Data base procedures and the query symbols for research are in IRM 3.17.46, Automated Non-Master File Accounting. NMF research can also be requested on Form 4338, Information or Certified Transcript Request. Enter the DLN, if available. See Figure 3.17.220-7.

    Figure 3.17.220-7

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 4338, Information or Certified Transcript Request

3.17.220.2.7.1.1.1  (01-01-2013)
Researching Statute-Expired (STEX) Credits

  1. Statute-expired credits (STEX) represent a wide range of situations which may require detailed analysis to determine whether further action need be taken to protect the taxpayer. If the taxpayer has been injured because of IRS action or failure to act, his/her rights may be restored. Statute function must be heavily involved and concur in all such instances.

  2. Assessment-barred cases represent remittances received within the last year with an amended return or increased liability determined as a result of examination which cannot be assessed because the statute of limitations for assessment expired and there is no basis for tolling or extending the statute. The taxpayer may recover the remittance by filing a claim for refund, but if the Service received the amount before the expiration of the statute it will not refund the amount to the extent of the outstanding liability on that account. When research identifies a case as a true assessment-barred credit, change its status code to "FROZ" using CC XSENT.

  3. Other statute credits in the XSF represent the expiration of the statute of limitations for credit/refund. The tax modules from which these credits are transferred and related documentation require detailed analysis to ensure that the taxpayer has not been damaged and is not entitled to a refund despite the apparent expiration of the statute. Often multiple modules may be involved in multi-functional action and the assessment of tax liability may or may not have been made. Examples of refund/credit statute cases requiring further inquiry are:

    1. Credit from module representing type of return which that taxpayer has never previously filed and paid;

    2. Credit represents advance payment of deficiency or designated payment of interest, and Examination action is complete, but additional assessment is less than amount of prepaid credit;

    3. Credit represents advance payment of deficiency or designated payment of interest, and Examination action is not complete despite extended passage of time;

    4. Credit from secondary taxpayer's module for which return was not received, but joint return was filed for the period. This credit was erroneously not applied to the joint liability although the source document indicates it was intended for payment of this type of tax for this period;

    5. Credit was removed from module prior to filing of taxable return, and liability was paid by moving credits from subsequent periods;

    6. Credit came from module for which return was not received, but CC INOLES gives a later address and a return can be secured and the liability determined there is an overpayment, before refunding any amount or crediting any amount to another module, ensure that the refund/credit statute has not expired.

    7. Upon XSF technician determining that no further action need be taken to protect the credit/refund statute taxpayer, the credit's status code will be changed to "FROZ" using CC XSENT.

3.17.220.2.7.1.1.2  (01-01-2013)
Researching Other Areas

  1. Research should include the following.

    1. Research microfilm, as needed. (See IRM 21.2, Systems and Research Program.)

    2. Account research requests are entered through IDRS terminals (CC ESTAB). See IRM 2.3, IDRS Terminal Responses. Once a day, the requests are transmitted to ECC where the needed data is extracted from the master files and transmitted back to the requesting campus. The information is usually printed and distributed at the campus within 24 hours of the request.

    3. Look for freeze codes –V and –W when researching BRTVU, RTVUE, IMFOL or BMFOL. Freeze codes –V and –W indicate the taxpayer is in bankruptcy. If present, contact the Special Procedures function in the area office.

    4. Research all retention registers and archival microfilm.

    5. Research the Partnership Name Directory.

    6. Research FTD Service Center Recognition Image Processing System (SCRIPS).

    7. Research the Combined Annual Wage Reporting (CAWR) Module Register.

    8. Research Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons microfilm Philadelphia IRS Center (PIRSC only)—prior to 1984.

    9. Research Social Security Administration (SSA)–produced W–2/W–3 CAWR microfilm (Latham, NY only).

    10. Research EFTPS payments using CC EFTPS. See IRM 2.3.70, Command Code EFTPS. In reviewing the information from this command code, refer to IRM 3.17.277, Electronic Payments. For assistance in researching payments from bulk providers, questions regarding the correct TIN for a payment or credit card companies, contact the Ogden Submission Processing Campus Accounting Operation.

    11. Research the Remittance Transaction Research System (RTR).

    12. Research the Account Management Services (AMS) system. AMS provides a common interface that allows users of multiple IRS systems to view history and comments from other systems. See IRM 21.2.1.8, Account Management Services (AMS).

  2. Obtain copies of source documents on nullified unpostable cases if unable to apply the credit.

  3. Request the original documents on all rejects if unable to research on IDRS.

  4. Pull the closed URF file for any XSADD cases which have been dropped from the URF. Retain a copy of the information contained in the URF. Refile the original in the URF closed file. This material may provide a starting point for your research.

  5. An even-dollar credit may represent a payment on an account that has been reported currently not collectible (CNC). The module will contain a TC 530 with a closing code (TC 530 cc nn). Uncollectible accounts do not generally appear on IDRS. If debit balance modules cannot be located because of insufficient information (such as full name, TIN, etc.), call the appropriate area office special procedures function to get information from the "Currently Not Collectible Accounts" Register, P/R/F 721–07–11. The register contains names, TINs, modules in CNC status which may provide additional leads for proper application of the remittance.

  6. Offshore Voluntary Disclosure Initiative Payments (OVDI) are consolidated to AUSC but occasionally are received at other campuses. When a payment is received at another campus, transfer to the AUSC Accounting function on Form 2158.

3.17.220.2.8  (01-01-2014)
Requesting Information from the Taxpayer

  1. Mail appropriate correspondex letter to the taxpayer for additional information when thorough research has not revealed where the credit should be applied. Before sending a letter to the taxpayer, check CC CFINK for Power of Attorney. If present, a letter must also be sent to the representative. See IRM 2.3.31, Command Codes CFINK, RPINK, KAFFQ and KAFTQ for CAF Inquiry.

  2. When available, enclose a copy of the check. Make sure that the person you are sending the copy of the check to is the taxpayer that is authorized to receive this information.

    1. Make sure that the name and address on the check matches the name and address to the correspondence. If the name or address mismatches, research the last tax return filed and see if the entity matches. For joint filers, the secondary taxpayer may have sent the check instead of the primary taxpayer.

    2. Inadvertent disclosures should be reported to your manager within one hour. Complete Computer Security Incident Reporting Form on website at: http://www.CSIRC.web.irs.gov/incident/.

  3. Use the following letters when corresponding with the taxpayer:

    1. Letter 1687C for application information and contact has not previously been made.

    2. Letter 12C for TIN and/or signature for secured return.

    3. Letter 18C for information and documentation to process refund for deceased taxpayer.

    4. Letter 112C for application information and to request return filing.

    5. Letter 135C for proper authorization to act for the taxpayer.

  4. If research indicates that a TC 593 is present on the taxpayer's account and that there has been no update to the taxpayer's address since the TC 593 was input, do not initiate correspondence to the taxpayer.

  5. Recontacting a taxpayer for information about the credit may be advisable at the manager's discretion in special cases, e.g., as when research indicates that the taxpayer may have moved and not received the initial communication or if lack of clarity or legibility may have been responsible for the failure of the first contact.

  6. Should telephone contact be deemed appropriate, avoid unauthorized disclosure of taxpayer information. Be very careful not to make an unauthorized disclosure. Refer to , Introduction to Disclosure and , Disclosure to Designees and Practitioners. The Internal Revenue Service Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(2), provides identification requirements for all IRS employees working tax related matters. Information provided to communicate with a taxpayer is outlined in IRM 21.1.1.7, Accounts Management and Compliance Services Overview, Communication Skills.

    Note:

    A narrative may be added to the Account Management Services (AMS) system when closing a XSF case based on telephone contact. See IRM 21.2.1.8, Account Management Services (AMS).

  7. Should research indicate the death of the taxpayer, refer to IRM 3.11.3.10.2, Documentary Evidence, for documentation needed to release the refund. In many cases, the person requesting the refund will have to complete Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. See Figure 3.17.220-8.

    Figure 3.17.220-8

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer

  8. Should taxpayer response indicate a claim of identity theft, check for identity theft markers, TC 971 AC 522, 501 or 506 found on Command Code Enmod and if there is no indication that the taxpayer has been provided with the identity theft information, refer to IRM 10.5.3.2.5, Initial Allegation or Suspicion of Tax-Related identity Theft - Identity Theft Indicators. for more information.

3.17.220.2.9  (01-01-2014)
Changing the XSF Record

  1. Research or the realization that an error was made when adding a record to the XSF may require changing or debiting the record or voiding it completely from the XSF.

  2. CC XSOUT and CC XSENT are available only to the Excess Collections function. However, any operational area may route such changes with supporting documentation to the Excess Collections function for action.

  3. Use CC FMAPLR to generate CC XSAPL. Then overlay CC XSAPLR with CC XSOUT. See Exhibit 3.17.220-9 for examples of CC XSOUT.

    1. CC XSOUT "V" is used to completely void an XSF record from the XSF.

    2. CC XSOUT "Z" is used to correct an erroneous money amount.

  4. CC XSENT may be used to:

    1. Change the status of the XSF record

    2. Add follow-up information to the record

    3. Correct erroneous entity information

    4. Change the IRS-received date on the record

    5. Change or delete the employee assignment number

    6. Change the control number

    7. Change the taxpayer identification number

    8. Change the source code

    9. Change the Trace ID Number

  5. CC XSINQ history will contain a record of the data change. See Exhibit 3.17.220-10 for examples of CC XSENT.

  6. Processing of Unpostables involving Excess Collections:

    1. With the exception of unpostables resulting from incorrect or unavailable money amounts, the Unpostable function will perform research to determine if they can correct the unpostable condition.

    2. When received, correct any erroneous entity data on the XSF database using CC XSENT. Do not void and re-add the credit to the XSF.

    3. Unpostables resulting from incorrect or unavailable money amounts will be returned to the Excess Collections function for resolution.

    4. STEX credits received from Unpostables should be forwarded to the Statute function for resolution.

3.17.220.2.10  (05-18-2012)
Manually Refunding from the XSF

  1. Use CC XSREFR/XSREF to effect a manual refund from the Excess Collections File. This type of application is restricted to the Excess Collections function and is to be used sparingly. The XSF record status must be "OPEN" or "IDEN."

  2. Refunds will also be requested by personnel outside the Excess Collections function on Form 8765, IDRS Control File Credit Application, as described in IRM 3.17.220.2.11. (See Figure 3.17.220-9 for Form 8765.) A refund will be made based on the taxpayer's response. Examples of acceptable reasons for a refund are: payment sent in error; payment intended for another payee or agency; receipt of Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer; etc. When processing Form 1310, refer to IRM 21.5.3, General Claims Procedures. The reason for a specific refund will be stated in the "Remarks" section of the Form 8765.

  3. If the taxpayer is to receive interest or needs penalties abated, apply the credit to the taxpayer's account rather than manually refunding from the XSF. See IRM 20.2, Interest, for instructions for computing interest on XSF refunds.

  4. Always research thoroughly to be certain the taxpayer has no outstanding balances before manually refunding. Also research for any freeze codes that may limit refunding. Refer to IRM 21.5.6, Freeze Codes.

  5. All refunds from the XSF will be reviewed by the manager or designate before application.

  6. Before applying the refund from the XSF, use CC XSENT to add audit trail information to the permanent file, including the reason for the manual refund, case number or other pertinent information.

  7. Refund an XSF credit by using CC XSREFR to request the generated CC XSREF format. See Exhibit 3.17.220-11 for CC XSREFR and CC XSREF.

  8. When refunding a payment intended for another agency or payee, send an explanatory letter to the taxpayer containing an appropriate apology for processing the remittance in error.

  9. Credits are returned to the campuses for refund checks that have been issued to taxpayers but were not cashed within one year. These credits are referred to as limited payability credits. Limited payability credits for refund checks initiated from CC XSREF will be transferred to the XSF function for resolution.

    1. Use existing documentation from the case file and information obtained through the research process to assist in determining the disposition of the credit.

    2. Contact the taxpayer for further instructions and/or a better address to which the refund can be reissued.

    3. If the taxpayer indicates that the refund should be reissued, use CC XSREF to execute the refund.

    4. If the taxpayer states that the credit should be applied to an outstanding liability, follow CC XSAPL procedures outlined in IRM 3.17.220.2.11 and IRM 3.17.220.2.12 below.

    5. If unable to contact the taxpayer or to refund or apply the credit, it will remain in the XSF as outlined in IRM 3.17.220.2(3) and (8).

    Note:

    See IRM 21.4.3.4.6, Resolving Returned Expired Refunds Limited Payability, for more information on the expiration of government checks.

3.17.220.2.11  (08-16-2013)
Applying Amounts From the XSF—General

  1. Application of credits from the XSF, using CC XSAPLR and CC XSAPL, cannot be made by persons outside the Excess Collections function. Upon finding the credit through using CC XSINQ, an individual outside the XSF function will submit request Form 8765, IDRS Control File Credit Application, with attached documentation identifying the credit and indicating its proper application. A NOTE may be added to the RTR System when a correction is made to the TIN, plan number, and tax period. See Figure 3.17.220-9.

    Figure 3.17.220-9

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8765–IDRS Control File Credit Application

    1. Source of Credit—select IDRS control file where credit is located, either XSF or URF.

    2. Application Type—use application type "M" to apply a credit to a Master File account; type "N" to apply a credit to a NMF account (including Employee Plans Master File (EPMF)), or type "T" to apply a credit to a general account rather than a taxpayer's account.

    3. Control Number—must match number shown on XSF record.

    4. Notice Indicator—check only if Letter 2349CG is to be sent to the taxpayer. (See IRM 3.17.220.2.12(11) and also Figure 3.17.220-11.)

    5. Return-Filed Date—if available, enter in MMDDYY format the IRS received date of the return if it is more than two years prior to the current date. Leave blank if the IRS received date is not known.

    6. Account Name Control—enter 4-position name control as shown on XSF. Circle with red pencil if name control on XSF is "UNKN" which must be changed to correct entry prior to application of the credit from the XSF.

    7. Application Name Control—enter 4-position name control of module to which credit is to be applied (if "M" application).

    8. Primary Transaction Code— See Exhibit 3.17.220-13 for list of valid TCs to be used on "M" applications.

    9. Primary Transaction Amount—amount of credit to be applied with (8).

    10. Secondary Transaction Code— See Exhibit 3.17.220-13 for list of valid TCs to be used on "M" applications.

    11. Secondary Transaction Amount—amount of credit to be applied with (10). Field will be blank if (10) is 570.

    12. Tertiary Transaction Code— See Exhibit 3.17.220-13 for list of valid TCs to be used on "M" applications.

    13. Tertiary Transaction Amount—amount of credit to be applied with (12).

    14. Taxpayer Identification Number—Taxpayer Identification Number to which credit is to be applied—entry limited to nine numerics; "M" and "N" applies only.

    15. Tax Period—enter tax period of account to which "M" or "N" application is to be made; in YYYYMM format.

    16. MFT—enter 2-digit Master File Tax Account code if application is "M" or "N."

    17. Remarks—required entry on all applies.

    18. Plan/Report Number—enter 3-digit plan/report number if MFT is 46, 74 or 76. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.

    19. Location Code or 23C Date—required only for "N" applies.

    20. Tax Form—required only for "N" applies.

    21. General Ledger Account Number—required for "N" applies.

    22. Preparer Identification—required entry to include name of preparer of Form 8765.

    23. Employee Number—required entry to include employee number of preparer of Form 8765.

    24. Phone Number—required entry to include phone number of preparer of Form 8765.

    25. Date—required entry containing the date Form 8765 is prepared.

  2. Form 8765 mirrors the CC XSAPL and CC URAPL formats as closely as possible. Form 3809, Miscellaneous Adjustment Voucher, may not be accepted for applying an XSF record. Call the originator of the Form 3809, explaining that Form 8765 must be used to request applications from the XSF. Return all Form 3809 to their originators.

  3. Form 8765 should have documentation attached identifying the credit on the XSF as well as justifying its requested application through correspondence, research performed, etc.

    1. If Form 8765 is received without this documentation or without proper completion of all required entries, return it to the requestor immediately.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Form 8765 received for Medical Resident Federal Insurance Contribution Act (MedFICA) cases will not be included in the normal documentation requirement process. The required documentation will be available in the MedFICA project records rather than being attached to each Form 8765. A unique process has been developed where the originator will submit Form 8765 along with a copy of the tax account transcript showing the addition to XSF, the approval memorandum from Submission Processing, and a copy of the MedFICA press release with details of the administrative determination.

  4. Certain Form 8765 must be cleared by the Statute function before application of the credits from the XSF. These include credits on which the statute of limitations for credit or refund has expired—two years from the date of payment (IRS received date) or three years from the return-filed date, whichever is later. Form 8765 prepared by the Statute function are to be considered cleared.

    1. If statute criteria is not identified prior to application, CC XSREF and CC XSAPL will automatically compute the statute of limitations from the IRS-received date.

    2. The technician should enter the filing date of the return to these formats whenever the IRS-received date is more than two years earlier than the current date. CC XSREF and CC XSAPL will then automatically compute the statute of limitations from the return-filed date.

    3. After computation, CC XSREF and CC XSAPL formats will complete the requested refund or application transaction whenever the statute of limitations has not expired. If the statute of limitations has expired, CC XSREF and CC XSAPL will change the status of the XSF record to "FROZ" , and the requested refund or application transaction will not be completed.

  5. The Excess Collections function will immediately return all Form 8765 that require statute clearance back to the originator unless it originated outside the campus. A Statute function determination may allow refund or credit in a case in which the statute normally would have tolled.

    1. If approved, the Statute function will stamp and date the Form 8765 in the "Remarks" area. The Form 8765 will be returned to the Excess Collections function for application of the credit using CC XSAPL.

    2. If disapproved, the Statute function will return the Form 8765 to its originator.

  6. When applying Statute function approved credits on which the statute of limitations has expired using the two year/three year rule, enter the Statute-approved date in the CC XSAPL format as the return filed date on Line 2. Note the correct return filed date in "Remarks" on Line 9. Form 8765 initiated by the Statute function do not require a clearance stamp, therefore, the date in block 25 will be entered on Line 2.

  7. As a result of the campus realignment, a credit on the XSF of one campus may occasionally require application to an account at another campus.

    1. If such a credit is to be applied to a Master File account, use CC XSAPL "M" in the usual way as described in IRM 3.17.220.2.12.

    2. If such a credit is to be applied to a Non-Master File account, apply the credit from the XSF using CC XSAPL "T" . Hand carry a print of the just-applied-XSF record with copies of documentation as required by IRM 3.17.243, Miscellaneous Accounting, to the Transfer function. The Transfer function will prepare Form 2158, Credit Transfer Voucher, to effect the transfer and necessary journalization.

    3. Form 8765 received from another campus without prior Statute approval will not be rejected but immediately forwarded to the local Statute function for review unless the Form 8765 was prepared by another campus' Statute function.

  8. When closing a case which needed research because the taxpayer failed to provide sufficient identifying information or the information provided was illegible, send stuffer Notice 942 with Letter 2349CG, to the taxpayer. See Figure 3.17.220-10.

    Figure 3.17.220-10

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Notice 942–Proper Credit for Your Tax Payments

  9. Remittances received with Form W-7 packages should remain in the receiving campus' XSF inventory until an ITIN is assigned. When the ITIN or IRSN information is received from the AUSPC ITIN Unit the remittance should be applied to the taxpayer even if the Account is not established on the MF.

    Note:

    An unpostable might be caused. The Unpostable units are aware that they may see an increase and have procedures to follow for resolution.

3.17.220.2.12  (01-01-2012)
Applying Amounts From the XSF—All Other Source Codes

  1. Verify the appropriate application to be made. This data will become part of the XSF record. The corresponding Form 8758 is not required to be pulled and associated with Form 8765.

  2. The XSF record must be in "OPEN" or "IDEN" status. Use CC XSENT to change the status as appropriate. When the entire XSF credit has been applied, the record status will automatically be changed to "CLOS." A partial application will adjust the XSF record balance but leave the status in "OPEN" or "IDEN" .

  3. Applications can be made daily by inputting information on IDRS with CC XSAPLR and may only be made by the Excess Collections function. This data will become part of the XSF record.

  4. Use CC XSAPLR to request the CC XSAPL format on IDRS. CC XSAPL cannot be used if the name control on the XSF record is "UNKN;" before application, change the name control with CC XSENT as described in IRM 3.17.220.2.9.

  5. The XSAPL format will be redisplayed after each application with the message "REQUEST COMPLETED" appearing on Line 13.

  6. Use CC XSAPLR to display the generated CC XSAPL format. See Exhibit 3.17.220-12.

  7. Use CC XSAPL "M" to apply credit to Master File accounts. On-line credit posting will be computer-generated to the appropriate tax module.

    Reminder:

    If the payment being applied was made via EFTPS, a "Y" must be entered in the electronic payment indicator field. Otherwise, the system automatically defaults to "N" .

  8. Use CC XSAPL "N" to make application to NMF and EPMF accounts.

  9. Use CC XSAPL "T" to make a transfer to Deposit or General Fund application.

  10. Form 4830, IDRS Posting Document, will be generated for each "N" or "T" application.

    Note:

    Include Trace ID Number on Form 4830, IDRS Posting Document. Enter Trace ID Number in Remarks.

  11. Should the "M" or "N" application not be based upon information received from taxpayer, send Letter 2349CG to the taxpayer. See Figure 3.17.220-11.

    Figure 3.17.220-11

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Letter 2349CG

  12. Should the outstanding balance of the taxpayer's account be less than the amount of the credit being applied and the application is not based upon information received from the taxpayer, send the taxpayer explanatory correspondence about the refund to be received. With the exception of TC 700, enter Bypass Indicator "Y" when applying a payment to an account which is in zero balance or debit balance for less than the credit being applied to avoid unpostable conditions 305 and 198. The Bypass Indicator should also be entered when a credit is applied to a full-paid account pending additional liability. Input TC 570 as a secondary transaction to hold the credit on the module and to avoid additional work for Unpostables. Record the pending liability and amount as part of the XSF history so subsequent technicians can know when to input TC 571 to the account in case the credit will ultimately be greater than the liability.

  13. If the record status correctly changes to "FROZ" because of an attempted application after expiration of the statute of limitations for refund, immediately notify the initiator of the Form 8765, forwarding the Form 8765 with accompanying documentation to the Statutes function.

  14. Refer to procedures in IRM 3.17.220.2.11 when applying from records having "ST" source codes.

  15. Annotate each applied Form 8765 with the date of application. Place the document in an appropriately labelled history folder.

  16. To speed processing, an Excess Collections "paper" credit which has either dropped from the XSF or was in Accounts 6800 or 9999 prior to the XSF may be applied through the XSF. For balancing purposes, local management may prefer to restrict action on such cases during the last few days at the end of each month.

    1. All IDRS action on a paper credit must take place within the same workday.

    2. Upon receipt of incoming Form 8765, pull the appropriate Drop Listing from EONS (XSF 50) or Control D (Report Name - XCESS COLL DROP LST1) that is seven years after the cycle and year the credit was removed from the TXMOD.

    3. Annotate the date and amount of credit to be reactivated. Review the case for accuracy and appropriateness of transfer.

    4. Add credit to the XSF using CC XSADD "R" , referencing 9998 DROP or 9998 PAPER in the history to indicate it is a reactivate.

    5. Access and print case record using CC XSINQ. Highlight 9998 DROP or 9998 PAPER.

    6. Apply credit using CC XSAPL.

    7. Hand carry print to RRACS for necessary action.

3.17.220.2.13  (01-01-2012)
Processing XSF Credits for Payments Other Than Tax Liabilities

  1. Conscience Money: This is a remittance received to ease the taxpayer's conscience and is usually accompanied by an anonymous note so indicating. For example, "Now I'll be able to sleep better." Use CC XSAPL "T" to transfer conscience funds to Account 2360, Conscience Fund (contra account 6400, Miscellaneous Revenue Collections). See Exhibit 3.17.220-12 for an example of CC XSAPL "T."

  2. Photocopy Fee: The processing of requests for photocopies of tax returns or tax return information is handled by the IRS. A taxpayer payment for photocopies can be placed in the URF and eventually transferred to the XSF. If taxpayer contact indicates that this remittance was intended for photocopies or for return information, transfer the credit to Account 2340, Photo Copy Fees, using CC XSAPL "T" . Annotate "Photocopy Fee" in the remarks.

  3. Bulk Forms Fee: Payments received from tax practitioners and other persons for shipment of bulk orders of tax forms should be refunded to the taxpayer using CC FMREF/XSREF. Under no circumstances may these amounts be applied to outstanding tax liabilities. The taxpayer should be sent a note explaining that the Superintendent of Documents (part of the Government Printing Office) is the only government agency authorized to sell printed materials such as federal tax forms. Refer them to the practitioner gate at the toll-free number 1-800-829-3676.

  4. Voluntary Contribution to Reduce the Public Debt: If taxpayer contact reveals that the payment was intended as a contribution to reduce the public debt, transfer the credit to Account 6400, Miscellaneous Revenue Collections, on IDRS using CC XSAPL "T." RRACS technicians will reclassify the money to Account 2350, Public Debt, for reporting purposes. Annotate in the remarks "Public Debt."

  5. Payment other than the partial payments required under TIPRA received with Offer in Compromise: This is an application fee with Form 656, Offer in Compromise other than the partial payments required under Tax Increase Prevention and Reconciliation Act (TIPRA) and explained in IRM 5.8.1.8, Initial Receipt of Offers. The payment may be received from a third party on behalf of the taxpayer making the offer. Compliance Services Collection Operations can verify the payment. An Offer In Compromise (OIC) payment may be identified by:

    1. "–Y" freeze,

    2. TC 480 or TC 780 on tax module or

    3. Status code 71. Use CC XSAPL "T" to transfer the credit to Account 4710, Offers-in-Compromise.

  6. User fees for letter rulings and for determination and opinion letters: Transfer these remittances to Account 6310, Miscellaneous Fees, using CC XSAPL "T" identifying the remittances as user fees. Forward a copy of the XSF 03 Report to the RRACS Function for journalization. Annotate it to show "User Fees. "

  7. Wrongful Levy Situations: These are credits received from a bank account other than the taxpayer’s or from sale of property which does not belong to the taxpayer; situation does not involve determination of hardship. The authority to return wrongful levy payments is provided in IRC 6343(b), which limits the return of money to the period of time within 9 months of the levy issuance. If IRS is contacted more than 9 months after the date of the levy, no authority is given to return wrongful levy payments.

    1. When a payment is identified as a wrongful levy situation within 9 months, immediately hand carry supporting documentation and a print of the CC XSINQ module to the Department Manager, Compliance Services Collection Operations (CSCO). Collection personnel will follow their procedures for issuing an expedited manual refund. Upon assurance that the expedited manual refund procedures have been followed, annotate the worksheet showing action taken and remove credit from the XSF using CC XSOUT "V" .

      Note:

      Do not use CC XSREF in wrongful levy situations.

    2. If the credit(s) are dated over twelve months, Form 8758 will be completed to add to Excess Collections. Do not refund the credit(s). The user will complete the form for each credit, using Category IDEN in Box 4.

  8. Unclaimed Funds: These are credits returned to the IRS by a state and represent bank drafts and cashier's checks purchased by taxpayers which have never been cashed, but were made payable to "Internal Revenue Service" . Research thoroughly to identify the taxpayer entitled to such a credit. A call to the state agency issuing the credit will identify the bank which forfeited the credit if the documentation attached to the incoming credit does not. Contacting the bank which forfeited the credit to the state often yields additional information since the forfeiture took place recently. However, if the taxpayer who bought the cashier's check or bank draft cannot be identified, the credit will remain in the XSF.

  9. Installment Agreement User Fees (IAUF): Since March 1, 1995, taxpayers are charged a fee for establishing and monitoring Installment Agreements (IA). As of January 1, 2007 these fees were increased, a new user fee was established for Direct Debit Installment Agreements (DDIA) and a reduced fee was also established for taxpayers with income at or below certain U.S. Department of Health and Human Services poverty guidelines.

    Note:

    Both the old and new fee amounts were valid in 2007. If the installment agreement was accepted prior to January 1, 2007, the old user fee amount was valid if paid in 2007. Installment agreements made after January 1, 2007 are subject to the increased fee.

    Note:

    Previously, taxpayers were required to submit a paper Form 13844 Application For Reduced User Fee For Installment Agreements to request a reduced user fee. Now, a taxpayer may qualify for the reduced fee automatically if there is a Low Income Indicator on IDRS.

    1. The Installment Agreement user fee for IMF and BMF taxpayers was $43 when the agreement was accepted before January 1, 2007. After January 1, 2007, the user fee increased to $105. Designated Payment Code (DPC) 50 will be used to identify the user fee.

    2. If the taxpayer qualifies for a reduced IA user fee, the reduced fee will be $43. The DPC 47 will be used to identify the reduced fee.

    3. If the taxpayer defaults on an Installment Agreement and applies for and is granted a reinstatement, a reinstatement/restructure fee of $24 will be charged to the taxpayer before January 1, 2007. After January 1, 2007, the reinstatement/restructure fee increased to $45. DPC 51 will be used to identify the reinstatement fee.

    4. The new user fee for a DDIA is $52. DPC 49 will be used to identify the DDIA user fee.

    5. If the taxpayer qualifies for a new reduced user fee for DDIA, the reduced fee will be $43. DPC 48 will be used to identify the reduced DDIA user fee.

    6. The Treasury Accounting Symbol for Installment Agreement user fees (and DDIA fees) is 20X5432.1 and 20X5432.3 for reinstatement/restructure fees.

    7. Installment Agreement user fees should not be refunded until CSCO has been contacted and given their approval to issue the refund.

    8. Beginning January 1, 2010, Installment Agreement user fees will be processed systemically by a weekly IDRS Correction Run known as the User Fee Sweep. The IA user fee Transfer Program sweeps all active IMF IAs, coded as "user fee due", and moves the money from the tax account to an accounting fund for IA user fee. No user fee modules are created. The sweep is done weekly, beginning 4 weeks after a TC 670 has posted to the account. The payment is reversed with a TC 672 Saturday Julian date in the DLN of the credit transfer, from "001" through "365".

    9. Apply the full amount of the payment to the taxpayer’s balance due account using the appropriate payment Transaction Code. When the customer makes a payment all of the money will be applied to tax. The User Fee Sweep will credit the UF account if necessary. See IRM 5.19.1.5.4, Installment Agreements, for specific information concerning installment agreements.

      Reminder:

      User fees may be made as split/multiple payments and must be equal to the required fee. If more than one payment was made, all must be credited to the taxpayer's module to cover the required fee.

  10. USDA Discrimination Settlement Payments - KCSPC only: The United States Department of Agriculture (USDA) paid cash settlement and granted loan cancellation to a limited amount of farmers. The settlement resulted from a discrimination suit brought against the USDA by the farmers. Awards from the settlement are treated as taxable gross income. Poorman-Douglas Bankruptcy Services forwards to the IRS a list of recipients who received USDA settlement payments. Each claimant who received a $50,000 settlement from Poorman-Douglas is also entitled to receive $12,500 from the IRS to pay their taxes on this settlement.

    Exception:

    Cancellation of Debt may be a larger settlement amount in which case IRS pays taxes equal to 25% of the settlement amount.

    1. The $12,500 tax payment is received in Accounting via Intra-Governmental Payment & Collections (IPAC). When IPAC transmission is received, RRACS prepares Form 8758 for prior year transactions and routes the Form 8758 with taxpayer data to the Excess Collections Function.

    2. The Excess Collections Function will add the total of the IPAC payment to the XSF file. The credits are then applied to the individual taxpayer's account with a TC 660 and a TC 570 to hold (freeze) the credit.

    3. Use program code 85390 when working these USDA cases.

  11. Preparer Taxpayer Identification Number (PTIN) Application Payments: PTIN application payments intended for processing by an outside vendor may be deposited in error by IRS. If the payment has not posted to a taxpayer's account, it may be refunded back to the taxpayer from the XSF using CC XSREF. Prepare Letter 3064C with a statement requesting that the taxpayer send the payment to:
    IRS Tax Professional PTIN Processing Center
    104 Brookeridge Drive Suite 5000
    Waterloo, IA 50702-5702

3.17.220.2.13.1  (08-16-2013)
Processing Payment Expired CSED (PMTEXPCSED) Credits

  1. A Payment Expired CSED (PMTEXPCSED) transcript will generate when a payment is applied to a module after the Collection Statute Expiration Date (CSED) has expired.

    1. When the CSED expires on a balance due account, any balance due remaining on the module is systemically "written off" with TC 608.

    2. The IRS is legally allowed to receive payments after the expiration of CSED in limited circumstances. The IRS will confirm the intent of the taxpayer for disposition of the payment.

  2. When a payment is received on a CSED account a TC 609 will post to reverse the TC 608. The new TC 608 balance will be recomputed after subtracting the payment.

  3. CSCO will perform all necessary research and correspondence according to IRM 5.19.10, Collection Operations Transcript Processing. The payments will be applied or refunded, per reply to the Letter 672C.

  4. If there is no reply to the Letter 672C, the payment will be sent to be added to the XSF via Form 8758 if the payment date is more than one year old. CSCO will attach the transcript and IDRS prints to the Form 8758.

    1. If the TC 608 has not been reversed in the module, add the payment to the XSF.

      Note:

      The account will be in debit status but the unpostable condition will be bypassed as long as there is an unreversed TC 608 in the module.

      Note:

      If the payment date is less than a year old, return the case to the originator. Form 2424 Account Adjustment Voucher (with documentation) must be prepared for addition to the Unidentified Remittance File.

    2. If there is not an unreversed TC 608, return the case to the originator so that the payment can be transferred to a full paid account.

  5. Add the case to XSF using Status Code IDEN. If a late response is received by CSCO, they will prepare Form 8765 to indicate the application of the credit.

    1. If the taxpayer responds to apply the payment to the CSED module, apply the credit and use DPC 14 (authorization given by taxpayer to apply payment to expired CSED account).

    2. If the taxpayer responds to apply the payment to another module, do so.

      Note:

      Do not apply the credit to another module unless requested by the taxpayer.

    3. If the taxpayer requests a refund of the payment, refund the payment.

    4. If the taxpayer requests that the payment be other than refunded, or applied to the CSED module, make sure that the case is documented.

3.17.220.2.14  (01-01-2012)
Other Closing Actions

  1. Use CC ENMOD to research current entity information. If the address needs to be changed, use CC INCHG (IMF) or CC BNCHG (BMF) to record the updated information. Address changes can be made in the following instances:

    1. When clear and concise written notification is received from the taxpayer. A statement signed by the taxpayer informing the Service to change the address of record is considered clear and concise notification. The statement must also contain the taxpayer's full name, signature, old address, and social security number and/or employer identification number.

    2. Whenever correspondence (including notices and envelopes) sent by the Service that requires a response is returned by the taxpayer with corrections marked on the taxpayer's address information, the correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature on the correspondence is not required.

    3. Address changes can be taken from the taxpayer over the telephone. The history sheet must be annotated and remain with the case. If for any reason you do not feel comfortable taking the information over the telephone, ask the taxpayer to submit the information in writing. See IRM 21.1.3.20, Oral Statement Authority.

    Reminder:

    Due to the implementation of CADE 2 for January 2012, a transaction may post daily or weekly. Monitor all actions accordingly to prevent unpostables or erroneous or incorrect refunds.

  2. The proper sequence of actions is:

    1. CC ENMOD to ensure the entity is on the file and to determine the current address on IRS records.

    2. CC ENREQ to generate the CC INCHG or CC BNCHG format.

    3. Overlay generated CC INCHG or CC BNCHG with new address information.

  3. Correspondence must be answered within 30 calendar days of the earliest "IRS–received" date; however, every effort should be made to provide quality responses in less time. If it is not possible to respond within this time period, send an appropriate interim response which includes:

    1. The reason for the delay;

    2. When a final response may be expected; and,

    3. An employee contact.

      Note:

      Record this action on the history sheet.

  4. When closing a credit from the XSF, take all necessary action to avoid future problems for the taxpayer. For example, quality or managerial case review may indicate that a TC 570 should have been originally input to prevent the account from refunding. CC FRM77 may be used to input specified transactions to any module on IDRS. To use FRM77, the proper sequence of actions is:

    1. CC TXMOD to ensure that the module is on the TIF.

    2. CC REQ77 to generate CC FRM77.

    3. Overlay generated CC FRM77 format with new data after the prompts.

    4. CC FRM77 will generate one transaction; CC FRM7A will generate up to 11 transactions—one transaction for each line of valid input.

      Note:

      Refer to IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, for information about using any of the above CCs.

3.17.220.2.14.1  (01-01-2012)
Transferring Credits Between Tax Modules

  1. General rules to use CC FRM34, CC DRT24 or CC DRT48—

    1. At least one of the tax modules involved must be present on IDRS. A dummy tax module created with CC ACTON will satisfy this requirement; see IRM 2.3.12, Command Code ACTON, for information about using CC ACTON.

    2. Use of these CCs is preceded by a CC TXMOD input which selects one of the accounts involved in the credit transfer as the Primary Account for IDRS purposes and stores its TIN, File Source, Name Control, MFT and Tax Period. If CC TXMOD displays "ENTITY-CONTROL" in position 44 of Line 3, the entity module contains an open control base which may be related to your case. If there is an open case control in Status S, A or M, contact the controlling employee before taking action. See IRM 2.3.11, Command Codes TXMOD and SUMRY, for information about using CC TXMOD.

  2. To transfer a payment credit between modules on the same master file (e.g., IMF to IMF) when no secondary transaction is required, use CC ADC34 or CC ADD34 to generate CC FRM34. Use of either of these intermediary CCs will store the TIN, File Source, Name Control, MFT and Tax Period for the other account involved in the transfer (Secondary Account).

    1. If the account information on CC TXMOD is the module to which the debit primary transaction will be posted, use CC ADD34.

    2. If the account on CC TXMOD is the module to which the credit primary transaction will be posted, use CC ADC34.

    3. Completion of CC ADD34 or CC ADC34, as appropriate, will generate CC FRM34. Account and module identification data is generated from the prior CCs and may not be altered in CC FRM34. See IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48, for CC FRM34 input format.

  3. To transfer a payment credit between files (IMF or BMF) or when a secondary transaction code is required, use CC ADD24 or CC ADC24 to generate CC DRT24. Use of either of these intermediary CCs will store the TIN, File Source, Name Control, MFT and Tax Period for the other account involved in the transfer (Secondary Account).

    1. The same tax module may be both the Primary and Secondary Accounts.

    2. If a dummy account is not established on the master file or if the account is established but the name control on the TIF account does not match the current master file name control, an error, response will be returned.

    3. If the account information stored on CC TXMOD is the module to which the debit primary transaction will be posted, use CC ADD24.

    4. If the account stored on CC TXMOD is the module to which the credit primary transaction will be posted, use CC ADC24.

    5. Completion of CC ADD24 or CC ADC24, as appropriate, will generate CC DRT24. Account and module identification data is generated from the prior CCs and may not be altered in CC DRT24.

  4. To transfer Overpayment Credit Elect, Refund Repayment, Substantiated Credit Allowances or Withholding/FICA Credit, use CC ADC48 or CC ADD48 to generate DRT48. Use of either of these intermediary CCs will store the TIN, file source, name control, MFT and tax period for the other account involved in the transfer (secondary account).

    1. The same tax module may be both the primary and secondary accounts.

    2. If a dummy account is not established on the master file or if the account is established but the name control on the TIF account does not match the current master file name control, an error response will be returned.

    3. If the account information stored on CC TXMOD is the module to which the debit primary transaction will be posted, use CC ADD48. Its display and completion is the same as that of CC ADD24.

    4. If the account stored on CC TXMOD is the module to which the credit primary transaction will be posted, use CC ADC48. Its display and completion is the same as that of CC ADC24.

    5. Completion of CC ADD48 or CC ADC48, as appropriate, will generate CC DRT48. Account and module identification data is generated from the prior CCs and may not be altered in CC DRT48. The CC DRT48 display and completion is the same as that of CC DRT24.

  5. If necessary to explain the effect of the statute's tolling upon the taxpayer's refund or credit, send Correspondex Letter 105C.

  6. Retaining a copy in the history file, route all original documents and correspondence pertaining to matters other than Excess Collections to designated primary areas as follows:

    1. Route any communication mentioning inability to pay or containing a request for a payment agreement to the Compliance function.

    2. Route all applications for extensions to Receipt and Control.

    3. Route any loose pages of Form 1040, U.S. Individual Income Tax Return, or related schedules to the appropriate Accounts Management function.

    4. Route any other communication which cannot be appropriately answered by the XSF function to the correct function by referring to the campus mail guide.

3.17.220.2.15  (01-01-2012)
OPEN Status Review

  1. A monthly listing of all credits in OPEN status with a received date of three years or less are generated during the month end processing for inclusion in the URF45. This listing will consist of the Excess Collection number, taxpayer name, TIN, MFT, tax period, balance amount, received date and source code sorted by TIN and tax period. See Figure 3.17.220-20.

  2. Credits included on this list must be reviewed every six months.

    Reminder:

    As a matter of consistency, the June and December month end reports generated in July and January should be used to determine the credits to be reviewed.

  3. Research will be conducted on each credit as described in IRM 3.17.220.2.7 and its subsections. Use CC XSINQ to research each record for the last action taken. The original Form 8758 may need to be reviewed if CC XSINQ does not provide enough information to determine the next action.

  4. If a credit cannot be applied, contact the taxpayer to request needed information as described in IRM 3.17.220.2.8. Internet research should be used by all BODs in an attempt to locate taxpayers ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Several sites (Accurint, Google, SEC, ZABASearch, EDGAR, VIVISIMO and SWITCHBOARD) can be used to locate a phone number or address if one cannot be obtained through IDRS or Directory Assistance.

    1. Research for the most current or other available addresses should be done. Use this information when addressing correspondence.

    2. If a new address is found, update the XSF record using CC XSENT.

    3. Contact with the taxpayer should be initiated once every six months. Be very careful not to make an unauthorized disclosure. Refer to IRM 11.3.1, Introduction to Disclosure and IRM 11.3.3, Disclosure to Designees and Practitioners and IRM 21.1.1.7, Communication Skills.

  5. When contacting the taxpayer by letter suspend the case for 45 days.

    1. If a reply is received, resolve the case according to the taxpayer's request.

      Note:

      If the taxpayer requests that the payment is refunded or applied to a tax module, make sure that the case is documented.

    2. If no reply is received, close case after 45 days. A new letter will be required to be mailed during the next six-month review.

    3. If correspondence is returned undeliverable, search for a better address and resend the letter if found. Suspend for additional 15 days. Update XSF with the new address using CC XSENT.

    4. If correspondence is returned undeliverable and no better address is found, close case. Research for a better address during subsequent reviews will be required. If a better address still can not be found, no follow-up letter is required.

  6. A narrative will be added to the record each time research is conducted or an action is taken (i.e., phone call, correspondence) using CC XSENT. This narrative should provide enough information to allow for future follow-up.

  7. A history sheet will be used to document actions taken. The documentation should include such items as taxpayer contact and responses, CCs researched, copies of any documents requested, dates of action taken, etc. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  8. Some cases may need to be suspended while awaiting taxpayer response or requested documents. This suspense system must facilitate timely follow-up actions and may be accomplished by means deemed appropriate.

  9. If research reveals a condition on the taxpayer's account that would not allow for application of the credit, change the status to "IDEN" using CC XSENT and count as a closure. Closure will also be taken for cases in which the credit was applied or the correspondence suspense time has expired.

  10. Receipts and closures will be reported to the Work Planning & Control System (WP&C) weekly using program 710-37605.

    1. Each July and January the total volume of the OPEN listing should be added as received.

    2. Closures will be reported each week with the overall inventory being reduced to zero at the end of the six-month period.

3.17.220.2.16  (01-01-2014)
Excess Collections Computer-Generated Reports

  1. Reports are viewed on the IRS electronic depository, "Control D" website. Retention of electronic reports is the same as paper records and is listed in Document 12990.

  2. URF01 (XSF) Excess Collection 6800 Analysis Report

    1. Daily inventory lists prior balance, new accounts added (through CC XSADD), URF accounts added, Statute Expired accounts added, adjustments, accounts closed, partial applications, open accounts dropped, voided accounts, and new balance by both count and dollar amount for each area processed by the campus.

    2. Report is divided by accounts with separate information shown for both 6800 and 9999.

    3. Report also includes summaries for the campus.

    4. Control D Report Name is URF0115.

  3. URF01 (XSF) Monthly Excess Collection 6800 Analysis Report

    1. Monthly inventory summarizes activity for the fiscal month in the same format described in (1) above.

    2. This report should be submitted monthly to headquarters as described in IRM 3.17.41, Accounting and Operating Reports, and IRM 3.17.220.2.17. See Figure 3.17.220-12.

    3. Control D Report Name is URF0115. To find the monthly report, use the last day of the month Run Date.

    Figure 3.17.220-12

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    URF01 (XSF), Monthly Excess Collections 6800 File Analysis Report

  4. URF03 (XSF)—Transaction Register

    1. XS ADD Register shows the excess collections control number and amount for each item added to the XSF by area location code (ALC). Subsequent pages of this register summarize the ALC totals of these items by tax class, count and amount for all source codes such as nullifieds and rejects. See Figure 3.17.220-13.

      Figure 3.17.220-13

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      URF03 (XSF)–XS Add Register

    2. The XSF NMF Apply Register lists the XSF control number, the taxpayer's name and address, TIN, tax period, 23C date/location code, form number and other information including amount and "Remarks." See Figure 3.17.220-14.

      Figure 3.17.220-14

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF03 (XSF)–XS NMF Apply Register

    3. The XSF Transfer Apply Register lists the XSF control number, taxpayer's name and address, amount, employee number and other information. See Figure 3.17.220-15.

      Figure 3.17.220-15

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      URF03 (XSF)–XS Transfer Apply Register

    4. The XSF Restricted Apply Register shows the type of void application, XSF control number, amount and employee number. As most XSF computer-generated reports, a later page of this listing summarizes the area data into campus volume and amount totals. URF03 (XSF) is a daily report. See Figure 3.17.220-16.

    Figure 3.17.220-16

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    URF03 (XSF)–Restricted Apply (Void) Register

  5. URF05 (XSF)—XSF Applications for IMF and BMF Controls.

    1. Daily report lists completed XSAPL "M" s in DLN order across the page.

    2. Summary breaks down total records applied by master file, showing volume of records, applications updated and amounts applied.

    3. See Figure 3.17.220-17.

    Figure 3.17.220-17

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    URF05 (XSF)–XSF "M" Applications Register

  6. URF07 (XSF)—Excess Collections File Performance Indicator Analysis

    1. Weekly inventory lists both dollar amount and count for prior balance, receipts, closures and new balance of each source code within the XSF.

    2. Totals of prior balance, receipts, closures and new balance agree with URF01 (XSF) inventory report of the same date.

  7. URF45 (XSF) —Accounts Receivable XSF/6800 Report

    1. URF45 (XSF) is a monthly report in two parts to aid in case management and to provide input to headquarters.

    2. The first pages of URF45 (XSF) list large-dollar cases in descending order by money amount and show their DLN, name control, IRS-received date, entry date to the XSF, current amount of the credit and cumulative amount of the credit plus all others above it in the listing. See Figure 3.17.220-18.

      Figure 3.17.220-18

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      URF45 (XSF)–Part 1, XSF Accounts Receivable 6800/Report

    3. The second part of URF45 (XSF) is an inventory printed in duplicate showing volume and amount of the beginning total inventory, beginning inventory of $25,000+ credits, total receipts during period, receipts of $25,000+ credits during period, total closures during period, closures of $25,000+ credits during period, ending total inventory, and ending inventory of $25,000+.

    4. The second part of URF45 (XSF) does not include true statute credits. A legend states volume and amount of these excluded items.

    5. The second part of URF45 (XSF) also shows volume and dollar amount of $25,000+ beginning inventory, closures and ending inventory for still-open credits added to the XSF in the immediately preceding fiscal year. See Figure 3.17.220-19.

      Figure 3.17.220-19

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      URF45 (XSF)–Part 2

    6. One copy of the second part of the URF45 (XSF) is to be retained in unit records and the other, accompanied by any required narrative, sent to Planning & Analysis Staff.

    7. The third part of the URF45 (XSF) is a listing of all OPEN status cases that have a received date less than three years old. This listing will be worked as referenced in IRM 3.17.220.2.15. See Figure 3.17.220-20.

      Figure 3.17.220-20

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      URF45 (XSF)–Accounts Receivable XSF/Open Report

  8. URF50 (XSF)—Transaction Register

    1. XSF Balance Amount Drop List contains records with IRS-received dates more than seven years old which have been dropped from the XSF. Items are listed by balance amount and include XSF control number, name control, IRS-received date and date of entry to the XSF. This listing will be destroyed 7 years after the end of the processing year. See Figure 3.17.220-21.

      Figure 3.17.220-21

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      URF50 (XSF)–XSF Balance Amount Drop List

    2. XSF Alpha Drop List contains records having IRS-received dates more than seven years old which have been dropped from the XSF. Items are listed alphabetically by taxpayer's name and include much of the information stored on the XSF record. This listing will be destroyed 7 years after the end of the processing year.

    3. XS Case Assign List shows all cases on the XSF by the employee number of the person to whom the case is assigned, if different from that of the employee who used CC XSADD. This report is secondarily sorted by file entry date and includes the name control, XSF control number, the balance amount and the journal account number. A new page begins whenever there is a change in employee number. This report has no summary. See Figure 3.17.220-22.

    Figure 3.17.220-22

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    URF50 (XSF)–XS Case Assign List

  9. XSF52—Accounts Closed to 9999, Revenue Clearance Accountability

    1. All records in Account 6800 (Excess Collection) at close of business the last day of the fiscal year will be changed to Account 9999.

    2. An annual register (XSF52) will be generated, listing these records in DLN sequence. Counts and amounts will be summarized by Area Office. See Figure 3.17.220-23.

      Figure 3.17.220-23

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      XSF52 - Accounts Closed to 9999, Listed By DLN and Balance Amount

  10. URF60 (XSF)—Monthly National Excess Collections Analysis

    1. Monthly inventory summarizes activity for the fiscal month in the same format used for the URF01 (XSF). Also includes a File Source Code Report and File Apply Code Report.

    2. Report is divided by accounts with separate information shown for both 6800 and 9999 .

    3. A separate report is generated for each campus and includes a national roll up.

    4. The report is available on the Control D web site. (See Figure 3.17.220-24. and Figure 3.17.220-25a).

    Figure 3.17.220-24

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    URF60 (XSF)–Monthly National Excess Collections 6800 File Analysis Report

    Figure 3.17.220-25a

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    URF60 (XSF)–Monthly National XSF 6800 File Source Code Report

    Figure 3.17.220-25b

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    URF60 (XSF)–Monthly National XSF 6800 File Apply Code Report

3.17.220.2.17  (01-01-2012)
Reporting of Inventories

  1. Receipt and production data for the weekly WP&C Managers Report should match the staff hour reporting period ending Friday or Saturday as directed in IRM 3.30.50, Project PCA Production Control Accounting.

  2. "Receipt Volume" for the WP&C will always equal "Actual Production" to achieve zero inventory for the OFP 710–37600. Since, by the nature of the inventory, few XSF cases are closed, actual work performed rather than cases closed is measured to yield a meaningful production rate. Therefore, for planning purposes, managers will use the URF01 (XSF) listings (inventory) in conjunction with the production data from the WP&C.

  3. To derive production data for the period for WP&C, add the following:

    1. From listing URF01 (XSF) for Account 6800 —"New accounts added," "Accounts closed" and "Voided accounts."

    2. From listing URF01 (XSF) for Account 999X —"Accounts closed" and "Voided accounts."

  4. Monthly computer-generated excess collections inventory reports for both Accounts 6800 and 9999 (URF01 (XSF)) are to be used as the source data for input to the MISTLE report.

  5. "Receipt Volume" for OFP 710–37605 will be reported to the WP&C during the months of January and July when the OPEN List is received as referenced in IRM 3.17.220.2.15. "Actual Production" will be reported to the WP&C weekly to achieve zero inventory by the end of the six month period.

Exhibit 3.17.220-1 
Sample Selection for Normal Managerial Review (Table 1)

Total Number of Cases on Excess Collections File Starting Page Case Additional Pages
0 to 4,999 2 9 4
5,000 to 9,999 7 3 8
10,000 to 14,999 3 6 11
15,000 to 19,999 9 14 15
20,000 to 24,999 4 10 19
25,000 to 29,999 1 1 23
30,000 to 34,999 11 13 27
35,000 to 39,999 10 27 31
40,000 to 44,999 2 5 35
45,000 to 49,999 32 14 38
50,000 to 54,999 29 13 42
55,000 to 59,999 9 16 46
60,000 to 64,999 35 12 50
65,000 to 69,999 40 23 54
70,000 to 74,999 24 18 57
75,000 to 79,999 2 15 61
80,000 to 84,999 13 17 65
85,000 to 89,999 1 1 69
90,000 to 94,999 15 24 73
95,000 to 99,999 10 3 77
100,000 to 104,999 45 10 80

Exhibit 3.17.220-2 
Sample Selection for Accelerated Managerial Review (Table 2)

Total Number of Cases on Excess Collections File Starting Page Case Additional Pages
0 to 4,999 4 5 4
5,000 to 9,999 2 1 8
10,000 to 14,999 6 3 11
15,000 to 19,999 8 17 15
20,000 to 24,999 5 20 19
25,000 to 29,999 9 1 23
30,000 to 34,999 11 14 27
35,000 to 39,999 17 6 31
40,000 to 44,999 27 2 35
45,000 to 49,999 8 22 38
50,000 to 54,999 1 9 42
55,000 to 59,999 4 11 46
60,000 to 64,999 34 2 50
65,000 to 69,999 30 10 54
70,000 to 74,999 28 12 57
75,000 to 79,999 35 15 61
80,000 to 84,999 13 27 65
85,000 to 89,999 30 13 69
90,000 to 94,999 3 19 73
95,000 to 99,999 52 28 77
100,000 to 104,999 21 16 80

Exhibit 3.17.220-3 
Statute Expired (STEX) Credits Added to Excess Collection, XSF55

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Exhibit 3.17.220-4 
Statute Expired (STEX) Cases Added to Excess Collection

Statute Expired Cases Added to Excess Collection
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Statute Expired Cases—Error Register
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Exhibit 3.17.220-5 
Table of Valid TC/MFT/Doc Codes (Addition to XSADD)

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Exhibit 3.17.220-6 
CC XSADDM / CC XSADD

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, for specific command code information.

(1) Input CC XSADD with "M" to add an account to Excess Collection while debiting it from the Master File.

(2) CC XSADD will show a running sub-total of items and monies being entered.

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CC XSADDM Input Format
Line # Description
Line 1 CC XSADD

Note:

All information through end of "M" format must be completed to agree with the Master File account module from which the credit is coming.


ITEM COUNT - The count shows how many items have been added. The count will change with each item added.
RUNNING TOTAL - The running total shows the dollar amount of all items entered.
   
Line 2 XSF CONTROL NUMBER - Overlay "Ns" with the original DLN on the account module from which the credit is coming. The first two digits of the control number must represent a valid area office or submission processing campus. Required entry.

Note:

If credit is an FTD payment, insert the last five digits of the Treasury United States (TUS) number into digits 9 through 13 of the original DLN which may be shared with a number of FTD payments. This will create a unique control number which reflects the credit's origin.
Julian date "999" is valid on the XSF.

  SOURCE CODE - Enter source code identifying area in which the excess collections credit originated. Required Entry.
AD - Adjustments
AM - Accounts Maintenance
CO - Collection
DO - District Office
FD - Federal Tax Deposit
NM - Non-Master File
NU - Nullified Unpostables
OT - Other
ST - Statute
UR - Clearing and Deposit Function
  STATUS CODE - Overlay "STAT" to show status of record at the time it's added to the XSF. Required entry.
FROZ — Credit is frozen from refund or credit. Can only be used with "ST" source code.
IDEN — Credit is identified, but cannot be applied.
OPEN — Credit can be applied or refunded after identification. If status code is left blank, status on file will be OPEN.
  EMPLOYEE ASSIGNMENT NUMBER - Enter assignment number of technician to be assigned record for research if different from employee number of person using CC XSADD.
   
Line 3 PRIMARY TRANSACTION CODE - Overlay with appropriate debit transaction code from Exhibit 3.17.220-5. which best reverses the credit being added to the XSF.
AMOUNT - Overlay "$" s with credit amount, starting with first "$" on left including the period and comma(s); e.g., 820.40$$$$$$. Required entry.
FREEZE INDICATOR - Overlay with Y if TC 570 is desired, e.g., when transferring multiple credits from the same account module. No TC 570 will be generated if "N" is entered or if the field is left blank.
   
Line 4 TYPE OF PAYMENT - Enter type of remittance received:
BC - Business Check
CA - Cash (including cash conversions)
CC - Cashier's Check
FD - Federal Tax Deposit (including Certificates of Deposit)
GC - Government Check
MO - Money Order
PC - Personal Check
UK - Unknown
WH - Withholding
  RECEIVED DATE - Enter IRS received date in MMDDYYYY format. If doc. code of the control number is 48, 58, or 65, the received date must be a current date or older. Otherwise, the received date must be more than 1 year old.
MULTIPLE CREDIT INDICATOR - Optional entry. Enter "Y" or "N" to retain the following screen input data when multiple credits for the same taxpayer are being added using CC XSADD.
Name Line 1
Name Line 2
Street – Address
City, State, ZIP Code
Comment Line 1
TIN
   
Line 5 1ST NAME - Overlay with first name line of the taxpayer. The first four positions identify the name control determined as directed in Document 7071, Name Control Job Aid. Length of name line is limited to thirty-five (35) characters. Do not use commas in name line except when entering the last name before the first name.
   
Line 6 2ND NAME - Overlay with second name line, if there is one. Length of name line is limited to thirty- five (35) characters.
   
Line 7 STREET ADDRESS - Overlay with street (mailing) address, if known.
   
Line 8 CITY/STATE/ZIP CODE - Overlay with city, state and ZIP Code. Input as follows: City, comma, 2-position standard state abbreviation, space, ZIP code. The city cannot exceed 16 characters in length. A pound sign (#) in the first position indicates a foreign address and requires only that the rest of the input field not be blank. A major city code followed by a blank and the ZIP code is valid.
   
Line 9 PAYMENT INFORMATION - Must be present. Entry can include any potentially helpful information such as research results.
   
Line 10 2ND PAYMENT INFORMATION - Optional; used as continuation of line 9, if needed.
   
Line 11 TAXPAYER IDENTIFYING NUMBER - Overlay in SSN/EIN format, if known.
ELECTRONIC PAYMENT INDICATOR - Must be "Y" if electronic payment is being applied. "N" will be the default. Valid for Transaction Codes 612, 642, 652, 662, 672, 679, 682, 692, and 695.
   
Line 12 MFT - Overlay with Master File Tax Code. Required entry. TAX PERIOD - Overlay with tax period in YYYYMM format. Required entry. PLAN/REPORT NUMBER - Present only when MFT is 46, 74 or 76. Format is NNN. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.
   
Line 13 Trace ID Number - Must be present. Entry cannot contain all zeroes for payments received after January 1, 2008, and must be a significant Trace ID Number entered.
   
Line 14 RESPONSE - For this and other XSF command codes, will contain "REQUEST COMPLETED" or error messages. (See Exhibit 3.17.220-14 for error messages, conditions, and solutions.)
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Note:

Line 1 total has been updated from information input on previous screen. XSADD item count is now 16 (15+1) and the running total has been updated to $7,520.60 ($7,432.60 + $88.00).

Exhibit 3.17.220-7 
CC XSADDR / CC XSADD

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, for specific command code information.

(1) Input CC XSADD with "R" to add an account to Excess Collection. CC XSADDR is entered and the screen is transmitted. The response screen is CC XSADD.

(2) CC XSADD will show a running sub-total of items and monies being entered.

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CC XSADDR Input Format
Line # Description
Line 1 CC XSADD

Note:

All information through end of "M" format must be completed to agree with the Master File account module from which the credit is coming.


ITEM COUNT - The count shows how many items have been added. The count will change with each item added.
RUNNING TOTAL - The running total shows the dollar amount of all items entered.
   
Line 2 XSF CONTROL NUMBER - Overlay "Ns" with the original DLN on the account module from which the credit is coming. The first two digits of the control number must represent a valid area office or submission processing campus. Required entry.

Note:

If credit is an FTD payment, insert the last five digits of the TUS number into digits 9 through 13 of the original DLN which may be shared with a number of FTD payments. This will create a unique control number which reflects the credit's origin.
Julian date "999" is valid on the XSF.

  SOURCE CODE - Enter source code identifying area in which the excess collections credit originated. Required Entry.
AD - Adjustments
AM - Accounts Maintenance
CO - Collection
DO - District Office
FD - Federal Tax Deposit
NM - Non-Master File
NU - Nullified Unpostables
OT - Other
ST - Statute
UR - Clearing and Deposit Function
  STATUS CODE - Overlay "STAT" to show status of record at the time it's added to the XSF. Required entry.
FROZ — Credit is frozen from refund or credit. Can only be used with "ST" source code.
IDEN — Credit is identified, but cannot be applied.
OPEN — Credit can be applied or refunded after identification. If status code is left blank, status on file will be OPEN.
  EMPLOYEE ASSIGNMENT NUMBER - Enter assignment number of technician to be assigned record for research if different from employee number of person using CC XSADD.

Note:

The field EMPLOYEE-ASG-NUM will be returned after each “REQUEST COMPLETED” for XSADDM

   
Line 3
AMOUNT - Overlay "$" s with credit amount, starting with first "$" on left including the period and comma(s); e.g., 820.40$$$$$$. Required entry.
   
Line 4 TYPE OF PAYMENT - Enter type of remittance received:
BC - Business Check
CA - Cash (including cash conversions)
CC - Cashier's Check
FD - Federal Tax Deposit (including Certificates of Deposit)
GC - Government Check
MO - Money Order
PC - Personal Check
UK - Unknown
WH - Withholding
  RECEIVED DATE - Enter IRS received date in MMDDYYYY format. If doc. code of the control number is 48, 58, or 65, the received date must be a current date or older. Otherwise, the received date must be more than 1 year old.
MULTIPLE CREDIT INDICATOR - Optional entry. Enter "Y" or "N" to retain the following screen input data when multiple credits for the same taxpayer are being added using CC XSADD.
Name Line 1
Name Line 2
Street – Address
City, State, ZIP Code
Comment Line 1
TIN
   
Line 5 1ST NAME - Overlay with first name line of the taxpayer. The first four positions identify the name control determined as directed in Document 7071, Name Control Job Aid. Length of name line is limited to thirty-five (35) characters. Do not use commas in name line except when entering the last name before the first name.
   
Line 6 2ND NAME - Overlay with second name line, if there is one. Length of name line is limited to thirty- five (35) characters.
   
Line 7 STREET ADDRESS - Overlay with street (mailing) address, if known.
   
Line 8 CITY/STATE/ZIP CODE - Overlay with city, state and ZIP code. Input as follows: City, comma, 2-position standard state abbreviation, space, ZIP code. The city cannot exceed 16 characters in length. A pound sign (#) in the first position indicates a foreign address and requires only that the rest of the input field not be blank. A major city code followed by a blank and the ZIP code is valid.
   
Line 9 PAYMENT INFORMATION - Must be present. Entry can include any potentially helpful information such as research results.
   
Line 10 2ND PAYMENT INFORMATION - Optional; used as continuation of line 9, if needed.
   
Line 11 TAXPAYER IDENTIFYING NUMBER - Overlay in SSN/EIN format, if known.
   
Line 12 MFT - Overlay with Master File Tax Code. Required entry. TAX PERIOD - Overlay with tax period in YYYYMM format. Required entry.
   
Line 13 Trace ID Number - Must be present. Entry cannot contain all zeroes for payments received after January 1, 2008, and must be a significant Trace ID Number entered.
   
Line 14 RESPONSE - For this and other XSF command codes, will contain "REQUEST COMPLETED" or error messages. (See Exhibit 3.17.220-14 for error messages, conditions, and solutions.)
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Note:

Line 1 total has been updated from information input on previous screen, XSADD item count is now 1 and the running total has been updated to $250.00.

Exhibit 3.17.220-8 
CC XSINQ

Refer to IRM 2.3.45, Command Code XSINQ, for specific command code information.

(1) Research of the XSF is done with CC XSINQ and can be researched in three different ways: by amount of remittance, by name control, or by DLN. If the DLN is not known, adding the Area Office to one of the other data elements will narrow the search down from region wide to that area.

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CC XSINQ Input Format
Line # Description
Line 1 CC XSINQ
   
Line 2 NAME CONTROL - Enter name control formed as directed in Document 7071/7071-A, or as the item is known to have been entered on the XSF. Enter UNKN if the record has been added to the XSF with the name control unknown. Leave Line 2 blank if you cannot form the name control. If this is the only data element entered, all records on the XSF with this name control will be displayed. An inquiry by name control produces a display of the complete XSF record.
   
Line 3 CREDIT AMOUNT - Enter the amount of the credit being researched, including decimal point and comma(s), starting from position 1. Leave Line 3 blank if the amount is not known. If this is the only data element entered, all records on the XSF with this amount will be displayed. An inquiry by credit amount produces a display of only the name control and control number.

Note:

To return to the menu, move to Line 2 and release. The menu will return with the pound sign (#) in front of the last complete record retrieved.

   
Line 4 CONTROL NUMBER - Enter the complete control number by which the record is controlled on the XSF (DLN, UR control number, XSF control number) or 2-digit area office code. Leave Line 4 blank if the control number is not known. An inquiry by control number produces a display of the complete XSF record.
   
Line 13 ERROR MESSAGES - An appropriate error message may appear in this line.
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CC XSINQ Display
Line # Description
Line 1 1ST NAME LINE
   
Line 2 2ND NAME LINE
   
Line 3 STREET ADDRESS
   
Line 4 CITY/STATE/ZIP

Note:

When data is not available for 2nd name line, street address or city/state/ZIP, the remaining lines of information will move up accordingly.

   
Line 5 XS CONTROL NUMBER
CAMPUS INDICATOR
TAXPAYER IDENTIFICATION NUMBER
MFT
TAX PERIOD
   
Line 6 TRACE ID NUMBER
   
Line 7 ORIGINAL DOLLAR AMOUNT
CURRENT XSF BALANCE
ACCOUNT NUMBERS - 6800 or 9999
   
Line 8 IRS-RECEIVED DATE
XSF ENTRY DATE
NOTICE INDICATOR
SOURCE CODE
STATUS CODE
TYPE OF PAYMENT
EMPLOYEE NUMBER - Not applicable to the XSF.
   
Line 9 PAYMENT INFORMATION - Displays history notes.
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Exhibit 3.17.220-9 
CC XSAPL / CC XSOUT (V, Z)

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, for specific command code information.

(1) Input CC XSAPLR which will generate CC XSAPL. Overlay CC XSAPL format with CC XSOUT.

(2) Use CC XSOUT in conjunction with a TYPE-OF-APPLICATION (V or Z) code to correct (Z) an erroneous XSF record, or to void (V) a record.

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CC XSOUTV Response Format
Line # Description
Line 1 CC XSOUT
   
Line 2 TYPE OF APPLICATION - Enter "V" in position 1.
CONTROL NUMBER - Control number must match that on XSF record.
   
Line 3 NAME CONTROL - Overlay with name control shown on XSF record.
   
Line 9 REMARKS - Overlay with reason for voiding record from the XSF. Required entry.
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CC XSOUTZ Response Format
Line # Description
Line 1 CC XSOUT
   
Line 2 TYPE OF APPLICATION - Enter "Z" in position 1.
CONTROL NUMBER - Control number must match that on XSF record.
   
Line 3 NAME CONTROL - Overlay with name control shown on XSF record.
   
Line 9 REMARKS - Overlay with reason for changing the record on the XSF. Required entry.

Exhibit 3.17.220-10 
CC XSENT

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, for specific command code information.

(1) Use CC XSENT to do one or more of the following: change the status of the XSF record; add follow-up information to the record; correct erroneous entity information; change the IRS received date on the record; change or delete the employee assignment number; change the control number; change the TIN; or change the source code.

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CC XSENT Input Format
Line # Description
Line 1 CC XSENT
     
Line 2 NAME CONTROL - Overlay name control as shown on the XSF record.
     
Line 3 XSF CONTROL NUMBER - Type in the UR control number as shown on the XSF record.
     
     
Lines 4-12 XSF ELEMENT CHANGES - Lines 4-12 are used to make changes. The first element being changed or added must be entered on Line 4. The next element being changed or added must be entered on Line 5, etc.
  a. New name line - If being changed, enter "N1/" immediately followed by the new name line. Length of name line is limited to thirty-five (35) characters. A new name control will be generated for the XSF record. The first position of the new name line must be alpha or numeric.
  b. New second name line – If being changed, enter "N2/" immediately followed by the new second name line. First position must be alpha or numeric. Length of name line is limited to thirty-five (35) characters.
  c. New street address – enter "ST/" immediately followed by the new street address. The first position of the new address line must be a valid character other than a blank. Optional when changing city/state ZIP.
  d. New city/state/ZIP Code - Enter "CS/" immediately followed by the new entry of one of the following:
1. A valid major city code followed by a blank and the ZIP code.
2. City, comma, 2-position standard state abbreviation, blank, ZIP code.
3. Pound sign (#) in position one followed by the foreign address.
  e. New status code - Enter literal "SC/" immediately followed by the appropriate status change. Values are:
1. OPEN to IDEN.
2. FROZ to OPEN.
3. FROZ to IDEN.
4. OPEN to FROZ.
5. IDEN to FROZ.
6. IDEN to OPEN.
  f. New IRS-received date - Enter "RD/" immediately followed by the correct received date in MMDDYYYY format.
  g. New narrative - Enter "NR/" immediately followed by new entry. First position cannot be blank. The field is limited to 38 characters (N/R + 35 characters).
  h. New employee assignment number - Enter "EN/" immediately followed by new 10-digit employee assignment number. Must be numeric.
  i. Delete employee assignment number - Enter "DE/" .
  j. New control number - Enter "DN/" immediately followed by the new 14-digit number.
  k. New Taxpayer Identification Number - Enter "TN/" immediately followed by new Social Security or Employer Identification Number. Field cannot exceed 11 characters.
  l. Source code- Enter "SO/" immediately followed by new 2 alpha character source code.
  m. Trace ID Number- Enter "TI/" immediately followed by new 20 digit Trace ID Number.
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Exhibit 3.17.220-11 
CC XSREFR / CC XSREF

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, for specific command code information.

(1) Input CC XSREFR to request CC XSREF format in order to refund an XSF credit.

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Response: CC XSREF. CC XSREF format will be displayed after the CC XSREFR input screen.

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CC XSREF Format
Line # Description
Line 1 CC XSREF
   
Line 2 XS CONTROL NUMBER - Overlay "Ns" with the XS Control Number which must match the control number on the XSF record.
RETURN-FILED DATE - Should be entered in MMDDYYYY format if IRS received date is more than two years before the current date. Optional entry.
   
Line 3 XS NAME CONTROL - Overlay "NCUR" with the XS Name Control which must match the name control on the XSF record and cannot be "UNKN" .
REFUND AMOUNT - Overlay "$" with the Refund Amount.
   
Line 4 PAYEE'S FIRST NAME LINE - must be present.
   
Line 5 PAYEE'S SECOND NAME - optional.
   
Line 6 PAYEE'S STREET ADDRESS - must be present.
   
Line 7 CITY, STATE, AND ZIP CODE - This information must be present. There should be a comma between the City and State and one blank space between the State and the Zip Code. A Major City Code, one blank and ZIP code is valid City/State/ZIP input. Required entry.
   
Line 8 TIN-FILE-SOURCE - This is an optional entry.
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Exhibit 3.17.220-12 
CC XSAPLR / CC XSAPL (M, N, T)

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, for specific command code information.

(1) Input CC XSAPLR to request the CC XSAPL format.

(2) Use CC XSAPL in conjunction with a TYPE-OF-APPLICATION (M, N or T) code to record the application of part or all of an Excess Collection record.

M - to apply a credit to a Master File account.

N - to apply a credit to a NMF account.

T - to transfer a credit to Deposit or General Fund account.

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CC XSAPL "M" Format
Line # Description
Line 1 CC XSAPL
   
Line 2 APPLICATION CODE - Enter "M"
XS CONTROL NUMBER - must match the number on the XS Record.
NOTICE INDICATOR - Enter "Y" if Letter 2349CG should be sent to the taxpayer. (See Figure 3.17.220-11.) Enter "N" if Letter 2349CG should not be sent to the taxpayer. The field will default to "N" if no entry is made.
RETURN FILED DATE - Enter in MMDDYYYY format if IRS received date is more than two years prior to current date.
   
Line 3 XS NAME CONTROL - Overlay "NCUR" with the XS Name Control. This must match the name control on the XS record and cannot be "UNKN" .
ACCOUNT NAME CONTROL - Overlay the "NCAP" with the name control of the account being credited. This must match the name control of the tax account module.
ELECTRONIC PAYMENT INDICATOR - Enter "Y" if an electronic payment is being applied. The field will default to "N" if no entry is made.
   
Line 4 PRIMARY TRANSACTION CODE - Overlay "1TC" with a valid transaction code (TC). (See Exhibit 3.17.220-13, Valid XSAPL "M" Transaction Table.)
PRIMARY TRANSACTION AMOUNT - Beginning with the first "$" sign, overlay with the amount including commas and decimal point, which may not exceed the balance amount in the XS record.
BYPASS INDICATOR - To apply an amount greater than the balance of the master file account to which the application is being made, overlay "N" with "Y" to override UPC 198 or 305, except when using TC 700. The field will default to "N" if no entry is made.
   
Line 5 SECONDARY TRANSACTION CODE - If a secondary TC is needed, overlay "2TC" with a valid secondary TC.
SECONDARY TRANSACTION AMOUNT - Can be present only when the primary transaction code is present. If the secondary transaction code is as follows:
TC 570, field is blank.
TC 270, field may be zero or a positive amount.
All other secondary amounts must be greater than zero and may not exceed the primary amount.
   
Line 6 TERTIARY TRANSACTION CODE - If needed, overlay "3TC" with a valid tertiary TC.
TERTIARY TRANSACTION AMOUNT - Can be present only when the secondary transaction code is present. Must be greater than zero. Sum of the primary and tertiary transaction amounts cannot exceed the balance of the XSF record.
   
Line 7 TIN - Overlay with the correct TIN. Enter file source literal if applicable:
Blank - Valid IMF SSN and BMF EIN.
* - Invalid IMF SSN.
N - NMF TIN.
P - Valid IMF SSN on MF with MFT 29.
X - Invalid IMF SSN with MFT 29.
V - Valid BMF SSN.
W - Invalid BMF SSN.
  DESIGNATED PAYMENT CODE - Overlay DP with the appropriated code.
   
Line 8 TAX PERIOD - Overlay "YYYYMM" with the correct tax period.
MFT - Overlay "NN" with the correct MFT.
DOC CODE - Enter Doc Code 48 or 58 if Primary TC or Tertiary TC is 710.
PLAN/REPORT NUMBER - Enter when MFT is 46, 74 or 76. Format is NNN. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.
   
Line 9 REMARKS - Overlay with appropriate remarks.
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CC XSAPL "N" Format
Line # Description
Line 1 CC XSAPL
   
Line 2 APPLICATION CODE - Enter "N"
XS CONTROL NUMBER - must match the number on the XS Record.
NOTICE INDICATOR - Enter "Y" if Letter 2349CG should be sent to the taxpayer. (See Figure 3.17.220-11.) Enter "N" if Letter 2349CG should not be sent to the taxpayer. The field will default to "N" if no entry is made.
RETURN FILED DATE - Enter in MMDDYYYY format if IRS received date is more than two years prior to current date.
   
Line 3 XS NAME CONTROL - Overlay "NCUR" with the XS Name Control. This must match the name control on the XS record and cannot be "UNKN" .
   
Line 4 PRIMARY TRANSACTION CODE - Overlay "1TC" with a valid transaction code (TC). (See Exhibit 3.17.220-13, Valid XSAPL "M" Transaction Table.)
PRIMARY TRANSACTION AMOUNT - Beginning with the first "$" sign, overlay with the amount including commas and decimal point, which may not exceed the balance amount in the XS record.
   
Line 7 TIN - Overlay with the correct TIN.
FILE SOURCE LITERAL - Must be "N" .
   
Line 8 TAX PERIOD - Overlay "YYYYMM" with the correct Tax Period.
MFT - Overlay "NN" with the correct MFT.
PLAN/REPORT NUMBER - Enter Plan/Report Number if MFT is 46, 74 or 76. Format is NNN. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.
   
Line 9 REMARKS - Overlay with appropriate remarks
   
Line 10 23C DATE OR LOCATION CODE
   
Line 11 TAX FORM NUMBER
   
Line 12 NMF IDENTIFYING NUMBER OR LEDGER ACCOUNT NUMBER
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CC XSAPL "T" Format
Line # Description
Line 1 CC XSAPL
   
Line 2 APPLICATION CODE - Enter "T"
XS CONTROL NUMBER - must match the number on the XS Record.
RETURN FILED DATE - Enter in MMDDYYYY format if IRS received date is more than two years prior to current date.
   
Line 3 XS NAME CONTROL - Overlay "NCUR" with the XS Name Control.
   
Line 4 PRIMARY TRANSACTION AMOUNT - Input the amount of the transfer. Begin overlaying the first "$" sign with the amount to be transferred.
   
Line 9 REMARKS - Overlay with description of the transfer.

Exhibit 3.17.220-13 
Table of Valid TC/MFT/Doc Codes (Application from XSAPL)

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Exhibit 3.17.220-14 
XSF Error Messages: Their Conditions and Solution

Refer to IRM 2.4.44, Command Codes XSADD, XSREF, XSAPL, XSOUT and XSENT, and IRM 2.3.45, Command Code XSINQ, for specific error messages for their conditions and solutions.

Note:

The list below does not include all error messages.

Error Message Conditions Solutions
AMOUNT FIELD INVALID 1. Amount field not formatted correctly. Correct and reenter.
2. PRIMARY-TRANS-AMT in CC XSOUTZ is equal to the ORIGINAL-AMT in the XS record. Correct PRIMARY-TRANS-AMT. It must be different.
3. ORIGINAL-AMT and BALANCE-AMT within the record are not identical. Review/Apply info—use CC XSOUT.
APPLICATION AMOUNT EXCEEDS BALANCE An attempt has been made to apply a larger credit from an XS record than is available for application. Determine the credit amount available for application and re-enter.
DLN ALREADY EXISTS ON FILE An attempt has been made to change a DLN on a record to a DLN which already exists on the file. Reassign a different DLN and re-enter.
AO/SC INVALID FOR THIS CENTER The Universal Location or Submission Processing Code is not processed by this submission processing campus. Correct and re-enter.
DUPLICATE CONTROL NO-ADD DENIED The same control number is already present on the existing XSF. Determine reason for the duplicate number; assign a different control number and re-enter, or CC XSOUT existing record if it is in error, re-enter correct control number after voided record has dropped from the file.
NAME LINE INVALID NAME-LINE-1 is missing; or NAME-LINE-1 does not begin in the first position; or the first position is not alpha-numeric. Enter NAME-LINE-1 beginning in the first position.
NARRATIVE MISSING OR INVALID Remarks field is blank, or the first position of Remarks field is blank, or Remarks field exceeds 35 positions. Begin Remarks in the first position and keep them within 35 positions.
nnERRORS-CORRECT* FIELDS & REENTER One or more of the INPUT DATA fields are in error (fail to pass validity checks).
Invalid fields will be indicated by having an asterisk (*) to the right of the data field. "nn" will indicate how many fields are invalid and must be corrected.
Locate the invalid fields; correct erroneous data; re-enter.
NO RECORD FOUND FOR GIVEN DATA Self-explanatory. Change search or apply information and re-enter.
PRIOR COMMAND CODE NOT COMPATIBLE CC immediately preceding the one just entered was not correct for inquiry or for processing; e.g., CC XSADD entered and CC XSAPL overlaid. Determine correct CC to use and re-enter data.
RECORD STATUS DOES NOT ALLOW APPLY An attempt has been made to change or apply an amount in a record in which the status is not OPEN or IDEN. Ensure this is the right record before taking further action.
STATUS CHANGE NOT ALLOWED An attempt has been made to change the status of a record which is not allowed. Status may be changed only from:
OPEN to IDEN
OPEN to FROZ
FROZ to OPEN
FROZ to IDEN
IDEN to FROZ
IDEN to OPEN
Ensure this is the right record before taking further action. Add narrative with subsequent information.
STATUS CODE INVALID An attempt has been made to change the record status to a status other than statuses listed above. Correct and re-enter.
TOO MANY TIF63 RECS - MUST WAIT FOR TRANSACTIONS TO POST BEFORE REINPUTTING. The maximum allowable pending TIF63 records is 96. Your request will exceed this amount. Try your request again after some of the pending transactions have posted to the TIF.
SUBTOTALS NOT AVAILABLE FOR RECALL (Only when using Recall-CD) No prior totals are stored, or EMPLEE-NUM is not the same as the one used to store the subtotal (condition will result in zeroing out whatever totals have been stored to this point). or
Prior command code is not compatible with the command code being entered (condition will result in zeroing out whatever totals have been stored to this point).
Recall to the screen all prior entries to get totals entered up to this point.
CONTROL NUMBER INVALID The CTRL-NUM is not formatted correctly, or
The CTRL-NUM is not all numeric.
Correct and re-enter.
CONTROL NUMBER/NAME CONTROL MISMATCH The CTRL-NUM is on file, but the NAME-CTRL input does not match the one in the record. Change the NAME-CTRL after verifying the taxpayer.
NAME CONTROL INVALID NAME-CTRL is not four positions when input, or
NAME-CTRL is not alpha or numeric in the first position, or
The first position is blank.
Control and re-enter.
CONTROL NUMBER/AMOUNT MISMATCH The CTRL-NUM is on file, but the amount does not match the amount in the record. Correct and re-enter.
CONTROL NUMBER/BOTH NC AMT MISMATCH The CTRL-NUM is on file, but the amount and NAME-CTRL input do not match those in the record. Correct and re-enter.
N/C AMT OR CONTROL NUMBER REQUIRED The required input data is not present on the CC XSINQ input screen. Enter one of the following: NAME-CTRL, Amount, or CTRL-NUM.
ASTERISK MISSING OR POSITIONED WRONG A CC XSINQ request is made to go from "Amount Display" to a specific record, but no asterisk (*) is found to the left of the Name-CTRL shown in the "Amount Display." Insert asterisk in first position to left of NAME-CTRL, Amount or CTRL-NUM.
NEW CITY STATE ZIP INVALID More that 16 characters have been entered for City, or
An invalid Major City Code has been entered.
Correct and re-enter.
NEW STREET ADDRESS INVALID New Street Address does not begin in the first position, or
The first position is not alpha or numeric.
Enter New Street Address line beginning in the first position.
NAME CHANGE EXCEEDS 35 CHARACTERS An attempt has been made to change the name on an XS record with a name greater than 35 characters. Shorten name line to 35 characters or less.
JOURNAL STATUS INVALID FOR CC An attempt was made to change an XSF record using an URF record. Use XSF command code and re-input.
RECORD IS IN VOID STATUS An attempt has been made to change entity data on a previously voided record. Base record is in void status and entity changes are not allowed.
DUPLICATE CHANGE LITERALS NOT ALLOWED An attempt has been made to change a literal already assigned. Correct and re-enter.
PLEASE CORRECT INVALID DATA Item asterisked (*) contains invalid characters, is improperly formatted, is missing or inconsistent with another asterisked item. Correct and re-enter.
BLANK LINE BETWEEN CHANGES NOT ALLOWED An attempt is being made to have a blank line between changes in CC XSENT. Correct and re-enter.
CHANGES MUST BEGIN ON SCREEN LINE 4 Change data not entered on proper line or not entered at all. Correct and re-enter.
INVALID ENTITY CHANGE LITERAL An attempt has been made to use an invalid entity change. Determine correct entity to use and re-enter.
DUPLICATE TIN NOT ACCEPTED A TIN exactly the same as the one being entered already exists on the XS File. Determine reason for duplicate number, reassign a different TIN and re-enter.
UPDATE(S) NOT ALLOWED STATUS FROZEN An attempt has been made to make changes to the record that has a status of frozen. BE sure that this is the record you want before taking further action.
INVALID DLN INPUT The CTRL-NUM is not formatted correctly or is not all numeric. Correct and re-enter.
DUPLICATE SOURCE-CD NOT ACCEPTED An attempt has been made to change a SOURCE CODE on a record to a SOURCE CODE which already exists on the record. Correct and re-enter.
FIRST NAME LINE EXCEEDS 35 CHARACTERS Self-explanatory. Re-input name line not to exceed 35 characters.
SECOND NAME LINE EXCEEDS 35 CHARACTERS Self-explanatory. Re-input name line not to exceed 35 characters.
TIF,URF, or TRAINING AREA DOWN OR RESTRICTED One of the listed areas is down or restricted. Contact Submission Processing Campus Data Base Administrator to find out if this correct and how long.
NAME LINE 1 IS EQUAL TO SPACES OR EQUALS LITERAL No change has been made to screen literals. Re-input name on name line 1.
MONEY AMOUNT NOT IN CORRECT FIELD Numeric character entered in blank space between transaction code and money amount field. Re-input money amount in correct field.
TIN NOT ESTABLISHED ON MF This TIN could not be matched against the National Account Profile (NAP) Database. Check to make sure the TIN is correct. If it is, this message means that this taxpayer is not yet on the Master File.
NAME CONTROL MISMATCH ON NAP FILE The Name Control cannot be matched against the NAP Database. Check to make sure the Name Control is correct. If it is, use CC TXMOD to check for prior name controls.
INVALID TIN-TYPE The TIN-TYPE is not valid. The NAP cannot be completed. This response indicates a program error. Notify the IDRS Control Staff.
TIN IS NOT ON EPMF OR BMF The TIN was not found on the NAP as an EPMF account or a BMF account. Check TIN.
TIN IS NOT ON EPMF; IS ON BMF The TIN was not found on the NAP as an EPMF account; it was found as a BMF Account. Check TIN.
CRS/NAP ACCESS NOT AVAILABLE: TRY LATER The Communication Replacement System (CRS) for the NAP is not available at this time. Try later.
NAP ENTITY FILE NOT AVAILABLE: TRY LATER The National Entity File is unavailable at this time. Try later.
BMF ACCESS RESTRICTED An attempt has been made by the user to access an IMF Account. User is not profiled to access this type of account. Refer to IRM 2.4, IDRS Terminal Input.
IMF ACCESS RESTRICTED An attempt has been made by the user to access a BMF account. User is not profiled to access this type of account. Refer to IRM 2.4, IDRS Terminal Input.
SSN NOT ON MF VALID OR INVALID-INOLE CAN BE USED TO VALIDATE DM-1 SSN/NAME TIN associated with the NAME-CTRL could not be found on MF. Check TIN or NAME-CTRL for errors or use CC INOLE to verify TIN and NAME-CTRL.
INVALID REQUEST-NAP TIN, TIN-TYPE, MF-SOURCE-CD are invalid. The NAP cannot be completed. Verify and re-input data.
DEADLOCK CONDITION PRESENT This account is currently being used by another run. Try later.
RECOVERY IN PROGRESS A recovery is being done to the Database and is unavailable Try later.
area-name "IS DOWN" An area of the Database is down and unavailable. Try later or try another area.
area-name "IS RESTRICTED" An area of the Database is down and unavailable. Try later or try another area.
Tif-" TIF" tif-num "AREA is UNAVAILABLE " This particular TIF-AREA is unavailable for use. Try later or try another area.

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