3.17.243  Miscellaneous Accounting (Cont. 1)

3.17.243.6 
Refund Litigation Cases

3.17.243.6.8  (10-01-2011)
Transcript Generated Due to Unpostable

  1. If the transcript generates because of an unpostable condition, resolve the unpostable.

3.17.243.6.9  (10-01-2011)
Diagnostic Transcript Type Q (Diag Q Transcripts)

  1. Diagnostic (DIAG) Transcripts identify unresolved IDRS conditions. They may also identify operational problems in other functional areas.

  2. The Campus Collection activity routes DIAG Q transcripts to the Refund Litigation Coordinator when:

    1. There is an unreversed TC 520 or unpostable TC 521, or

    2. No TC 520 but a -V or -W freeze and the closing code is 71 or 73 for all MFT’s except 13 or 55.

  3. These transcripts generate when the above condition has been present for at least one year, or the CSED (Collection Statute Expiration Date) has expired.

  4. The type of DIAG-Q transcript is indicated in the upper-right hand corner of the transcript. The codes and meanings are:

    1. "DIAG-Q TYPE 1" Indicates one year since freeze was established. This number can be from 1 to 9. If the number “9” is present, check the transaction date to determine the number of years of inactivity.

    2. "DIAG-Q TYPE C" -Indicates that the CSED has expired.

  5. Upon receipt of the DIAG-Q transcript, screen the transcript to ensure that it has not been mis-routed. If the transcript is mis-routed, contact the Service Center Collection Branch (SCCB).

3.17.243.6.10  (10-01-2011)
Transcripts Generated Due to Expired CSED or Inactivity

  1. When the transcript generates because of an expired CSED or inactivity, check the case control card to determine the current status of the case, and take one of the following actions:

    If The case is: Then
    Closed and the module balance is "0" Reverse the TC 520
    Closed and the module balance is NOT "0" Pull the case to determine if Form 3011-A has been received. It may be necessary to contact a technical unit to ensure that any necessary adjustment actions have been taken. After these steps have been taken, reverse the TC 520.
    Active (not closed)
    1. Order a hardcopy ENMOD of the TIN

    2. Highlight the name and address information

    3. Prepare a routing slip to the area where the case is charged out (usually District Counsel or Chief Counsel, Litigation Division). Provide the information in (2) below.

    4. Send the DIAG-Q and ENMOD to the appropriate Counsel.

  2. When it's necessary to send notification to Counsel, notate the following information: "Attached is a DIAG-Q transcript and hardcopy of an ENMOD. The DIAG-Q indicates that the CSED has expired, or the TC 520 has been on the case for years and there has been no activity" .
    "Please take the appropriate actions on this case. If the case is closed and the TC 520 should be reversed, please provide us with a copy of the Form 3011-A (or a new Form 3011-A if the original Form 3011-A is not available). Send the Form 3011-A to the address shown below" . Provide your office's street address.

  3. If there is no record of the case, contact Chief Counsel to verify the status of the case.

    If the case is: Then:
    Open Counsel will inform you what area office controls the case
    Closed or counsel has no record of the taxpayer, and the module balance is "0" Reverse the TC 520
    Closed or Counsel has no record of the taxpayer, and the module balance is NOT "0" Route the DIAG-Q to Special Procedures Function (SPF). Indicate to SPF what action has been taken (e.g., research, contact with Counsel).

3.17.243.7  (10-01-2010)
Department of Justice (DOJ)

  1. On March 1, 1984, the Atlanta Campus began receiving monies collected through the Department of Justice (DOJ) as a result of court actions and IRS referrals to DOJ for collection. Effective in June 2010, these monies are now be received and processed at the Kansas City Campus.

3.17.243.7.1  (10-01-2010)
Monies Collected by the Department of Justice

  1. There are situations which require the aid of the courts to collect or recover taxes. The U.S. Department of Justice (DOJ), Tax Division, represents the IRS in both civil and criminal litigation filed in federal district courts. U.S. Attorneys’ Offices may also represent the IRS in litigation.

  2. Monies collected through the Department of Justice (DOJ) in civil cases are electronically transferred to IRS via Intra-Governmental Payment and Collection (IPAC). See IRM 3.17.243.7.2, DOJ Payments Transferred via IPAC, for more information.

    Note:

    The IRS is statutorily required to release Notices of Federal Tax Lien within 30 days from the date that the liability for the amount assessed has been fully satisfied or has become legally unenforceable. Expeditious handling of monies collected is, therefore, imperative.

  3. Payments known as "Debt Management Payments" will also be received from DOJ. These payments are handled differently because they are not payments of tax liabilities. See IRM 3.17.243.7.6, Processing Debt Management Payments, for more information

  4. Monies may also be paid to the IRS as the result of a criminal case where the court orders the defendant to pay restitution. Criminal restitution payments may or may not be applied to taxpayers’ accounts, depending upon whether civil tax assessments have been made. See IRM 3.17.243.7.2, DOJ Payments Transferred via IPAC, for more information regarding criminal restitution payments.

3.17.243.7.2  (10-01-2010)
DOJ Payments Transferred via IPAC

  1. Intra-Governmental Payment and Collection (IPAC) provides a standardized interagency fund transfer mechanism for federal program agencies. Monies received by DOJ as a result of civil litigation are transferred to the IRS via an IPAC 1081, Voucher and Schedule of Withdrawals and Credits. A detailed listing to support transfer of funds is mailed to IRS by DOJ along with the individual payments comprising the total amount transferred via IPAC 1081.

  2. Payments on the IPAC support listing may be from three different sources within the Department of Justice (Tax Division, US Attorneys and the Debt Management Section), each of which should be researched and processed differently.

  3. The support listing shows the following information:

    • Section 1, Debtor Payment Information, reflects the total amount of each payment collected by DOJ; and

    • Section 4, Administrative Adjustments, lists those payments on which three percent has been withheld by DOJ and reflects the amount withheld on each payment.

  4. Payments from Tax Division have the legend "TAX DIVISION" and a telephone number in the far right-hand column. Those from the Debt management Section show "Debt Accounting Operations group" along with a phone number.

  5. Procedures for the journalization of DOJ IPAC receipts are found in IRM 3.17.63.26.2, Lock Box Deposit of Collections From Civil Judgments. DOJ (IPAC) receipts are journalized to Account 4975, Liability DOJ Receipts, per IRM 3.17.50.3.11.1, IPAC Receipts.

  6. The following instructions are to be used by the Accounting Technicians or Tax Examiners working DOJ IPAC to research IDRS and apply credits to the proper tax modules. Every effort should be made to utilize in-house (IRS campus) resources and these instructions before calling other offices and agencies for assistance.

  7. By statute, DOJ may withhold three percent of all amounts collected pursuant to civil debt collection activities. Therefore, if a civil payment is received through IPAC for $100.00, DOJ will "hold-back" $3.00 and transfer the remaining $97.00 to the IRS.

    1. Section 4, Administrative Adjustments; of the Detail Listing to Support Transfer of Funds shows the payments on which the three percent has been withheld by DOJ (See figure 3.17.243.-1, Abstract Numbers). The amount of each payment withheld by DOJ is provided.

    2. A comparison must be made in order to determine the payments on which the three percent was withheld and to compute the actual amount transferred to IRS in those cases where the hold-back occurred. Taxpayers must, however, be given full credit for the total amount received by DOJ (see below, IRM 3.17.243.7.6, Processing Debt Management Payments, guidelines for processing civil payments on which three percent has been withheld by DOJ).

      Note:

      For Criminal Restitution there is NO three percent charge

    Figure 3.17.243-1
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  8. The order of processing payments received through IPAC should be:

    • U.S. Attorney payment

    • Tax Division payments

    • Debt Management payments

3.17.243.7.3  (10-01-2010)
US Attorney and Tax Division Payments

  1. Four determinations must be made for all U.S. Attorney and Tax Division payments:

    • Liability assess-ability

    • Taxpayer identification

    • Module(s) to which payment is applied

    • Assessment status.

      Note:

      IPAC receipts must be worked within 2 days.

3.17.243.7.3.1  (10-01-2010)
Liability Assess-Ability

  1. The first determination to be made is whether the payment relates to an assessed tax liability. Payments relating to assessed tax liabilities will be applied to the appropriate taxpayer accounts. See IRM 3.17.243.7.3.3, Applying Payments to Modules, below. If the payments relate to liabilities that are not assessable, they are applied as described in paragraph (5), below.

  2. Refer to Cause of Action column of DOJ listing.

  3. Unassessable erroneous refunds, refund schemes, Debtor Master File (DMF) accounts, attorneys fees and payments for other agencies are unassessable as taxes. No attempt should be made to post payments determined to be unassessable to a taxpayer’s account.

  4. If Attorney’s fees, DMF accounts and payments for other agencies are erroneously received, they must be transferred back to DOJ. Contact the DOJ collection officer, using the following instructions for the specific source of payment. No further determinations need be made for these payments.

  5. Follow instructions in IRM 3.17.63.26.2, Lock Box Deposit of Collections From Civil Judgments (Kansas City Only), for transferring unassessable payments other than attorney fees and payments for other agencies from Account 4975, (Liability DOJ Receipts) to the correct general ledger accounts. No further determinations need be made for these payments.

  6. Continue making the remaining three determinations for assessable payments and for those payments for which assess-ability cannot yet be determined. If, at any time during subsequent research, a payment is determined to be unassessable, refer back to paragraph 5, abandoning efforts to apply the credit to a specific taxpayers account.

3.17.243.7.3.2  (10-01-2010)
Taxpayer Identification

  1. ) If the taxpayer's TIN is included on the IPAC support listing verify that this is the correct taxpayer by researching IDRS under this identifying number. Freeze conditions on the account such as TC130 or TC 520 help to positively identify the taxpayer.

  2. If the taxpayer's TIN is not shown on the IPAC support listing, research in-house record systems such as IDRS for the entity shown as the debtor on the IPAC support listing. Freeze conditions on the account such as TC 130 or TC 520 help to positively identify the debtor as the taxpayer.

    Note:

    Prior to posting a payment, research IDRS for freeze codes which may cause the payment to unpost. See IRM 21.5.6, Freeze Codes, and Document 6209, IRS Processing Codes and Information, for an explanation of specific freeze codes. Coordination must be done with the appropriate contact to resolve the freeze code condition in order to prevent the payment from becoming an Unpostable transaction.

3.17.243.7.3.3  (10-01-2010)
Applying Payments to Modules

  1. ) After determining the correct taxpayer, request Enterprise Computing Center-Martinsburg (ECC-MTB) transcripts for all debit balance modules, only if payments need to be transferred to Non-Master File.

  2. Ideally, Debit(s) equaling the amount of the payment will be found in the transcripts. Determination of the assessment status need not be made in such cases.

  3. If a debit balance module is not found in the transcripts:

    • the module may be Non-Master File (NMF),

    • an assessable liability may not yet have been assessed, or

    • the credit may represent the collection of an unassessable liability

  4. See procedures for un-assessed assessable credits (below).

  5. IDRS transcripts are needed for all NMF cases in TDA status. Access to NMF accounts is required. Input an OL5081 request for ANMF-TCC-RESEARCH-GROUP ORACLE for access to NMF. If assistance is needed contact Cincinnati Service Center at (859)669-2328 to have NMF records researched.

  6. Copies of Automated Non-Master File (ANMF) transcripts are needed for all other open NMF accounts

3.17.243.7.3.4  (10-01-2010)
Assessment Status

  1. The tax has been assessed in the following:

    1. Trust Fund Recovery Penalty refund litigation;

    2. 28 USC 2410 cases (e.g., foreclosure, quiet title, interpleader);

    3. Foreclosure of tax lien;

    4. Reduction of tax to judgment (shows on account even if in zero balance because the collection statute expired without a TC 520 cc 80 being input to the module);

    5. Bankruptcy litigation;

    6. Probate cases;

    7. Assessments made against IRS employees under IRC 7804C in litigation cases involving embezzlement. See IRM 3.0.167.5.6, Losses and Shortages for more information.

  2. Collection Advisory Groups (formerly known as the Technical Services Function) have responsibility for the litigation cases listed above with the exception of bankruptcy cases. The Centralized Insolvency Operation and Field Insolvency have responsibility for bankruptcy cases. See IRM 5.9.1.3., The Role of Insolvency.

  3. The tax has not been assessed in the following because it is unassessable:

    • Unassessable erroneous refunds;

    • Refund schemes;

    • Debtor Master File accounts

    Note:

    QRP/RPP cases are not assessable. These cases are identifiable on IDRS with a TC 91X/Z freeze. Documentation in IDRS will be noted as "restitution". The money associated with these cases will not be applied to the taxpayer's account because the cases are erroneous refund court ordered restitution money.

  4. The tax has not yet been assessed although it is assessable: e.g., IRS employee embezzlement cases (where IRC 7804 assessment has not been made).

3.17.243.7.4  (10-01-2010)
Researching U.S. Attorney Payments

  1. The persons supplying this data on the listing attached to the SF 1081 are scattered throughout the United States. Information, particularly the "cause of action" , received from U.S. Attorneys may be less standardized than from the other sources. Only U.S. Attorneys are involved in criminal cases.

  2. No supplemental worksheet will be received from DOJ for US Attorney payments.

  3. Taxpayer identification and verification - Contact the U.S. Attorney at the number shown on the IPAC support listing to verify the taxpayer found during research or to identify the taxpayer should the research be unsuccessful.

  4. Area office identification - From the case file, the US Attorney can also tell the area office from which the case was referred. If prior research indicates the case is NMF, call the Cincinnati campus’ NMF function for help in taxpayer and module identification. Secure IDRS transcripts for all NMF cases in TDA status and ANMF transcripts for all other open NMF accounts.

  5. Case type - See Exhibit 3.17.243-9 for a list of U.S. Attorney case types. While restitution payments in criminal tax cases should be disbursed by the clerk of court offices, such payments may be included on IPAC from a U.S. Attorney’s Office. If it appears that a criminal restitution payment is being transferred via IPAC, follow the procedures set in IRM 3.17.243.7.8.

  6. Module verification - Depending upon the case type, and whether or not the liability has been assessed, contact the appropriate area office for verification of the module to which the payment should be posted (or assessed and posted). For bankruptcy cases, contact the appropriate Insolvency Field Office. For correct contact information, see the SERP Who/Where website at http://serp.enterprise.irs.gov/databases/who-where.dr/inslvncy-bnkrptcy/national_insolvency_field.htm. For criminal restitution cases, contact the appropriate Advisory Probation Liaison, or the appropriate Special Agent in Criminal Investigation. See IRM 3.17.243.7.9, DOJ IPAC Payment Processing Procedures, below, for more information regarding criminal restitution payments. For all other cases, contact the appropriate Collection Advisory Group. See Pub. 4235 for Collection Advisory Group contact information.

3.17.243.7.5  (10-01-2010)
Researching Tax Division Payments

  1. Delay processing Tax Division payments for no longer than one week to allow supplemental log sheets prepared by Tax Division paralegal employees to arrive. These worksheets contain the TIN and type of liability involved in each case. If minimal IDRS research performed during this week reveals the taxpayer, ECC-MTB transcripts may be requested while awaiting the worksheets. If further assistance is needed, contact William Thompson at 202-514-6075, the DOJ collection paralegal responsible for the case or the area office.

  2. See Exhibit 3.17.243 -9 for a list of judicial [case management] districts.

  3. Most states have more than one judicial district. With the exception of seven states, all judicial districts within the state are in the same IRS area. Exceptions (most likely IRS area listed first where there is a choice):

    1. California - Northern: San Jose, Sacramento, San Francisco; Central: Los Angeles or San Jose; Eastern: San Jose or Sacramento; Southern: Laguna Niguel or Los Angeles.

    2. Illinois - Northern: Chicago; Central and Southern: Springfield.

    3. Florida - Northern: Jacksonville; Middle: Jacksonville or Ft. Lauderdale; Southern: Ft. Lauderdale.

    4. New York - Northern: Albany or Buffalo; Eastern: Brooklyn; Southern: Manhattan or Albany; Western: Buffalo.

    5. Ohio - Northern: Cleveland or Cincinnati; Southern: Cincinnati.

    6. Pennsylvania - Eastern or Middle: Philadelphia; Western: Pittsburgh

    7. Texas - Northern: Dallas; Southern: Austin or Houston; Eastern: Dallas or Houston; Western: Dallas or Austin

  4. When processing NMF cases, all of the judicial districts are serviced by the Cincinnati campus.

  5. For DOJ collection paralegal contacts, see Exhibit 3.17.243-10.

  6. The case type or cause of action is shown on the supplemental worksheet under the column labeled "Type of Case/Attorney Assigned."

  7. See Exhibit 3.17.243-11 for a list of Tax Division civil case types giving rise to the litigation.

  8. Common NMF case types are:

    1. 3204-Frivolous Return Penalty (IRC 6701 and 6702)

    2. 3205-Return Preparer Penalty (IRC 6694 and 6695)

    3. 3206-Abusive Tax Shelter Penalty (IRC 6700)

    4. 3207-Windfall Profits Tax

  9. Case types not shown on the list in Exhibit 3.17.243-11 are criminal causes of action involving the U.S. Attorney. Payments received in criminal cases are restitution payments. Generally, criminal restitution payments made to the IRS are not included in IPAC, but are made through the clerk of court office. See IRM 3.17.243.7.9, Court Ordered Criminal Restitution Payments, below.

  10. Exhibit 3.17.243-12 shows common phrases used by the Department of Justice on IPAC 1081 when describing the cause of action. Narrative descriptions of each phrase are provided.

  11. Module verification - depending upon the type of case and whether or not the liability has been assessed, contact the appropriate area office function (Collection Advisory or Insolvency) for verification of the module to which the payment should be posted (or assessed and posted).

3.17.243.7.6  (04-07-2014)
Processing Debt Management Payments

  1. No attempt should be made to post Debt Management payments to taxpayers' accounts as they are not payments of tax liabilities. Payments intended for other agencies should be returned to DOJ via IPAC. Only the actual amount received by Kansas City Submission Processing Campus (KCSPC) should be returned to DOJ. If DOJ withheld three percent of a payment, it will be necessary to compute the amount to be returned to DOJ. This is done by subtracting the amount withheld by DOJ as shown in Part IV, Administrative Adjustments, of the IPAC support listing from the amount of the payment as shown in Section 1, Debtor Payment Information, of the IPAC support listing.

  2. All DOJ IPAC payments made to the IRS, along with the Detail Support List, should be sent to the Kansas City Submission Processing Center (KCSPC) using Agency Location Code (ALC) 20-09-0900 and address:

    IRS Special Services
    333 W. Pershing Avenue
    Kansas City, MO 64108
    Attn: Mail Stop 6262, DOJ IPAC.

  3. If there are Inquiries regarding receipt and application for a specific DOJ IPAC payment, contact must be made with Kansas City SPC DOJ-IPAC technician at 816-325-3790 or at the secure email address *W&I DOJ-IPAC.

  4. Taxpayers must be given full credit for their payments in civil cases where DOJ has withheld three percent. In order to post the full amount to the taxpayers' accounts, the following steps must be taken.

    1. Account 6950, DOJ Civil Debt Collection Hold-back, will be used to "offset" the amount of monies withheld by the Department of Justice on civil cases.

  5. Prepare Form 3809, Miscellaneous Adjustment voucher to:

    • debit Account 6950 for the three percent withheld by DOJ, less any credits transferred to IRS in error;

    • credit Account 4975 (liability, DOJ Receipts) for the same amount.

    Note:

    The total amount withheld by DOJ is shown on the last page of Section IV, Administrative Adjustments of the IPAC support listing.

  6. Prepare Form 2424, Account Adjustment Voucher, to transfer the credit to the Master File or appropriate general ledger account:

    • Debit Account 4975 for the full amount paid by the taxpayer as shown in Section I, Debtor Payment Information, of the IPAC support listing.

    • Credit the Master File or general ledger account for the same amount using a Designated Payment Code as appropriate.

    • In the explanation block on Form 2424, notate"DOJ 3% has already been taken out."

    Note:

    All Form 2424 that are prepared by the employees in the Accounting operation must be reviewed and approved by the manager, or their designee, prior to being sent through for processing. This responsibility may not be delegated below the level of the Lead.

  7. Follow internal procedures for routing documents to RRACS for journalization.

3.17.243.7.7  (10-01-2010)
Other Actions

  1. In any case in which DOJ has secured a judgment, either at IRS' request or by counter-claim, the collection statute of limitations must be suspended for all affected modules. The office that is controlling the case, usually Collection or Exam, is responsible for requesting input of the proper controls. See IRM 25.3.6.6, Litigation and Judgments for actions to be taken by Collection Advisors when assessments are reduced to judgment.

    Note:

    If appropriate case controls are not input to suspend the collection statute when a judgment is secured, any module will go to zero balance upon expiration of the normal statute for collection. Thereafter, any payment collected on the judgment has the potential to create a credit balance which could erroneously refund to the taxpayer.

  2. As each item is identified for the specific taxpayer account or reversal to DOJ, the document indicating the action should be annotated in the "Remarks" area that it is to be journalized from Account 4975.

  3. If the account to which the payment is to be posted is a Non-Master File assessment, prepare Form 2158, Credit Transfer Voucher, to transfer the credit to Cincinnati Submission Processing Campus (CSPC). The full amount of the payment received by DOJ as shown in Section 1, Debtor Payment Information, of the IPAC support listing must be transferred to CSPC. Attach sufficient documentation to Form 2158 to identify the credit and support the transfer.

  4. When all possible research has been performed and the unresolved item in Account 4975 is more than two years old, associate the documentation supporting the unresolved item with a Form 8758, Excess Collections File Addition, to add the amount to Account 6800, Excess Collections File (XSF). See IRM 3.17.220, Excess Collections File, for completion and routing of Form 8758. Figure 3.17.243-2 is an example of a completed Form 8758.

    Figure 3.17.243-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  5. Payments which are relatively small and in even dollar amounts may represent installment payments on liabilities, as a result of a DOJ action.

3.17.243.7.8  (02-27-2012)
DOJ IPAC Payment Processing Procedures

  1. Upon receipt, the IPAC transaction sheet is journalized by the RACS Team into the 4975 Liability DOJ receipt Account and forwarded to a DOJ-IPAC Accounting Technician.

  2. The DOJ-IPAC Technician will:

    1. Log the IPAC data in the inventory control book.

    2. Log the IPAC receipt document reference number (to monitor processing time).

    3. Create a file folder for IPAC. Label the folder indicating the IPAC number.

    Note:

    "All payments associated with the IPAC listing must be processed at this time."

  3. Use all available resource tools, i.e., IDRS, DOJ ACCESS Application, history sheets, and if appropriate, initiate phone calls to determine the following;

    1. Taxpayer’s identity

    2. Where the payment should be applied?

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

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

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

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

    Note:

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

  5. Prior to forwarding the payment posting documents to RACS for numbering;

    1. Sort by MFT, date, and both current and prior fiscal year (PFY).

    2. Prepare Form 1725 (Routing Slip) referencing the IPAC number and volume.

    3. Forward Form 1725 with documents to RACS for numbering. At this point, a Document Locator Number (DLN) will be assigned and a Form 813 prepared.

    Note:

    All documents should be together (each MFT group and PFY/current status) with a calculator tape attached.

  6. RACS will return all posting documents to the DOJ Technician with the assigned DLN and Form 813.

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

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

  9. On the IPAC listing, label each 3 percent amount with the appropriate Tax Class (TC) for the classification of the payment. Ex: MFT 01 = TC 1, MFT 30 = TC 2, etc. Exceptions include; documents that are 4975 and 6800 Accounts, the account number will be used instead of a Tax Class.

    1. Capture the 3 percent amount for each Tax Class (TC).

    2. Run tape to ensure total of all Tax Class 3 percent amounts equal the IPAC 3 percent fee total.

    3. Verify that the 3 percent amount is correct by multiplying each Form 813 for that MFT by 3 percent; this should balance back to the 3 percent indicated for that TC on the IPAC listing.

    4. Prepare Form 3809: debit 6950, DOJ Civil Debt Collection Hold-back and credit 4975, DOJ Liability account.

    5. Photocopy all pages of the IPAC listing that indicates 3 percent fee.

  10. Prepare Form 3210 (Document Transmittal), listing the DLN and volume for each Form 813 on the IPAC.

  11. Make a copy of the credit document for 4975. Attach the copy to the original as the 3rd copy. For 6800 Account items, make 2 copies of the Form 2424.

  12. Prepare package to be released for journalization.

    1. Form 3210 – 2 copies

    2. Form 1725 with all Form 813

    3. Form 2424 – 4220 (IMF), 4120 (BMF), 4975 posting documents, 4420 posting documents, 6800 posting documents (Form 8758 and Form 813)

    4. Form 3809 – 3 percent posting document

      Note:

      Ensure package is in balance before releasing for journalization.

  13. Forward the DOJ IPAC package to RACS for journalization.

  14. Record all payments on the DOJ ACCESS Application and file IPAC folder in the closed file.

3.17.243.7.9  (10-01-2010)
Court Ordered Criminal Restitution Payments

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

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

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

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

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

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

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

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

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

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

  8. The clerk of court offices will disburse criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS are being processed by Submission Processing at the Kansas City Campus, only. The clerk of court offices have been requested to send all criminal restitution payments to the following address:

    • IRS-RACS

    • Attn: Mail Stop 6261, Restitution

    • 333 W Pershing Ave

    • Kansas City, MO 64108

      Exception:

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

  9. The Special Agent has the responsibility of completing Form 14104 (Notification of Criminal Restitution or Court ordered payments payable to the IRS) and forwarding the completed form to the secure email account: "W&I Criminal Restitution"

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

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

3.17.243.7.9.1  (04-07-2014)
Restitution Payment Processing

  1. Criminal restitution checks are received daily in the Receipt and Control Function; sorted and placed in bins/baskets labeled "Criminal Restitution" . The checks should not be separated from any cover letter or other document that contains information relating to the check.

    Note:

    All checks must remain in a secure area therefore, by "Local Agreement" or "Memo of Understanding" (MOU); these checks will be researched and prepared for manual deposit by an Accounting Technician.

  2. Accounting Technicians are responsible for collecting and applying criminal restitution payments received through the clerk of court offices. Payments are applied based on information received from the clerk of court office, Criminal Investigation, Collection Advisory, IDRS research or the DOJ ACCESS Application.

  3. All criminal restitution payments received are recorded on the DOJ ACCESS Application along with information received from the clerk of court offices and Criminal Investigation. The DOJ ACCESS Application is also used as a research tool for proper application of restitution payments. The DOJ ACCESS Application is housed on the Kansas City shared drive. Access to this program is currently restricted to the Accounting staff.

    Note:

    DOJ IPAC payments do not need to be researched as they are applied per the posting instructions on the support listing.

  4. An Accounting Technician will report to Receipt and Control function daily to retrieve the restitution related checks and/or money orders. Generally, DOJ criminal restitution payments are received with information or related correspondence from the clerk of court office with taxpayer identifying information and payment disposition.

  5. Research payments received to determine if a restitution based assessment (RBA) has been made. If so, then apply these payments to the corresponding civil assessment (MFT 31 module) on the master file.

  6. If initial research indicates payment can be applied, as indicated, a DLN is assigned to the Form 3244 and routed to Deposit for processing. There may be cases where no civil tax assessments have been made even though the court ordered the criminal defendant/taxpayer to pay restitution to the IRS.

  7. If no information is received from the clerk of court office, the check is reviewed for any indication of the taxpayers' name. Research is performed on IDRS and the DOJ ACCESS Application for taxpayer identification and appropriate tax modules for posting.

    Note:

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

  8. When research does not provide the information needed to apply payments to assessed modules or the civil tax liability has not been assessed, prepare Form 3244 and journal to the 6400 Account, (the 6400 account is used to record Federal Court Ordered Restitution for Costs and Penalties) awaiting further action or research. When posting instructions are received, a Form 2424 is prepared for processing, debiting 6400 Account and crediting the taxpayer.

  9. Follow up research should be performed periodically to ensure assessments are made on the account so that payments are applied to relevant tax years. Payments applied to the 6400 account as "Unknown name/SSN" will require contact with the clerk of court office forwarding the check for additional taxpayer identifying information. Assistance regarding the correct application of a payment to a taxpayers' civil tax liabilities should be obtained from the appropriate Criminal Investigation Special Agent or Collection Advisor.

  10. Form 14104 – Notification of Criminal Restitution or Court Ordered Payments Payable to the IRS - will be completed by the Special Agent assigned to each case and forwarded via secured e-mail to "W&I Criminal Restitution."

  11. The Notification form will include:

    • Name of CI Special Agent

    • Name of taxpayer/defendant

    • Whether joint and several liability with others

    • Criminal Docket Number, identity/location of court

    • Amount ordered payable to IRS

    • Tax period(s) included in calculation of restitution

    • Where to apply the payment and type of tax

  12. If additional information is needed to process the payments received, contact the Special Agent whose name and telephone number are listed on the form. File a copy of this form in the defendant’s case file.

  13. When posting instructions are received or a tax module has been assessed, a Form 2424 is prepared for processing to debit the 6400 account and credit the taxpayer account. Follow the Accounting research processing procedures below.

  14. Criminal restitution payments are not always applied to master file (MF). If no assessment is made, the payment will remain in the General Account.

3.17.243.7.9.2  (10-01-2010)
Accounting Deposit Procedures

  1. Collect criminal restitution checks and correspondence from designated area in Receipt and Control Function (R&C) (Do Not leave restricted area with checks).

  2. Sort checks by state, city or district court, then check number.

  3. Research IDRS and DOJ ACCESS Application for taxpayer information.

  4. If check and/or correspondence have the defendant’s (taxpayer) name, perform the following:

    1. Research the DOJ ACCESS Application

    2. If name is found on History page, prepare Form 3244

    3. If the name is not listed on the History page, add to the DOJ ACCESS Application

  5. If check and/or correspondence have SSN/EIN only:

    1. Research IDRS Command Code INOLES to locate name

    2. When name is located, research the DOJ ACCESS Application

    3. If name is found on History page, prepare Form 3244

    4. If the name is not listed on the History page, add to the DOJ ACCESS Application

  6. If check and/or correspondence have the docket number only:

    1. Research the DOJ Access Application

    2. If name is found on History page, prepare Form 3244

    3. If the name is not listed on the History page, add to the DOJ ACCESS Application

  7. If check and/or correspondence do not have the name, SSN/EIN, or docket number:

    1. Access DOJ Access Application; add to the application as "unknown"

      Note:

      All of the unknown Form 3244's will be researched later

  8. Generate electronic Form 3244, print 1 copy, Green rocker payment amount and underline name control.

  9. Generate electronic Form 2221 (Schedule of Collections), assign batch number from daily log sheet and print 2 copies.

  10. Make 3 copies of checks with corresponding Form 3244 on the same page:

    • Copy 1 – DOJ Technician records

    • Copy 2 – Taxpayer Case File

    • Copy 3 – RACS Folder

  11. Preparation for manual deposit will include:

    1. Associate checks with Form 3244 and Form 2221

    2. 1 (one) copy of Form 2221, Form 3244 and all original checks (place in designated manual deposit area for deposit team)

      Note:

      "Yesterday's work is today's deposit"

3.17.243.7.9.3  (04-27-2012)
Accounting Research and Processing Procedures

  1. After submitting the completed forms for deposit in the Receipt and Control (R&C) area, the Accounting Technician will hand carry 1 (one) copy of Form 3244, Form 2221 and correspondence back to the Accounting area and place in a designated area.

    1. The clerk or Technician will retrieve the Form 3244 and Form 2221 from the designated location and file the documents in the taxpayer folder.

    2. History sheets will be updated and annotated with actions taken.

  2. Additional research is needed if check and/or correspondence do not have the name, SSN/EIN, or docket number:

    1. Access DOJ Access Application; add to the application as "unknown"

    2. Contact the Clerk of Court office that prepared the check to obtain information. Once the information is obtained, update DOJ Access Application with correct information.

    3. Request that future checks include the full name of the defendant and the court docket number

      Note:

      For Disclosure reasons, the clerk of court offices have been instructed to exclude all SSN/EIN on restitution checks.

  3. If information identifying the taxpayer cannot be obtained from the Clerk of Court’s office:

    1. Contact the Special Agent whose name and number appear on Form 14104 received via e-mail "W&I Criminal Restitution."

    2. Prepare Form 3244

      Note:

      The SP HQ DOJ analyst will request, on a quarterly basis, an updated listing for the Administrative Office of the U.S. Courts. This combined listing will be sent out to the Kansas City Submission Processing Center Accounting Operation. This list will be used to obtain any missing PII associated with restitution checks that cannot be traced to a specific defendant so that the payments can be credited to the defendant's tax account.

3.17.243.7.9.4  (04-07-2014)
State Court Ordered Restitution

  1. State courts may order defendants to pay restitution to the IRS. The following are particular types of situations, but not limited to, which may involve state court ordered restitution:

    • Refund schemes not involving ID theft - may have return preparer involvement. May or may not result in civil assessments on the taxpayers and preparer(s) involved by IRS. These should go to the 6400 account unless IRS has civil assessments on the tax and periods involved.

    • Refund schemes involving ID theft - there will not be civil assessments as false pretenses were used to gain the refunds. Generally these should go to the 6400 account.

    • Civil assessments have been made by IRS - apply monies to tax modules if they are included in the basis of the restitution.

      Example:

      Taxpayer owes federal taxes on Form 1040 for 2010. If the restitution monies are because we had a loss for a refund scheme involving the 2010 tax year, then we apply them to the civil assessment. If the restitution monies are because we had a loss for a refund scheme involving the 2009 tax year, we apply them to the 6400 account.

      Note:

      State court ordered restitution means all courts within a state, including local counties and judicial districts.

    State courts will forward these payments to the Kansas City Criminal Restitution address. When a payment is received Kansas City will create a case file and maintain separately. Advisory will be contacted when state court judgement documentation is not received with payments. These payments will be added to the DOJ database with an indicator for "State court case." Case files will be maintained separate from criminal restitution cases received from federal courts. No restitution-based assessments will be made on these cases under IRC 6201(a)(4).

  2. If a payment for restitution to IRS is received from a state court, due to the tax loss to the IRS, and no case is found;

    1. Process the payment into the 6400 account, add to the database, and create a case file.

    2. Maintain court judgement documentation and history sheet with payment in the case file.

    3. If no court judgement documentation is received, contact the Advisory Probation Liaison (APL) for the state/geographical area from which the payment was received.

      Note:

      The listing of Advisory contacts can be found at the SBSE website http://mysbse.web.irs.gov/AboutSBSE/Collection/fieldcoll/aiq/aiqorg/contacts/19176.aspx

    4. Advisory will contact the state court and request judgement documentation for the case. They will send to Kansas City via E-mail/FAX. Follow up with Advisory if the documentation has not been received.

3.17.243.7.9.5  (04-22-2013)
MFT 31 Case Procedures

  1. These procedures will be used only for criminal restitution cases where the J&C date is after August 16, 2010. Form 14104, Notification of Criminal Restitution or Court Ordered Payments Payable to the IRS will be sent out by CID (Criminal Investigation Division) to both Technical Services and KCSC Accounting. Accounting will establish the case file and add it to their database. Until procedures have been finalized, Technical Services (TS) will create the MFT 31 account on Master File via Form 3177 with a TC 971, AC 102. When the Form 3177 is submitted by TS for processing they will inform KCSC Special Services Team of the submission of the Form 3177 via secured DOJ mailbox at *W&I Criminal Restitution. Upon receipt of this information, Accounting will research their 6400 Account for related payments and prepare the necessary documentation for the transfer of discovered payments from the 6400 account to the pending new MFT 31 account.

  2. If no payments are found Accounting will notify TS that no payments were found in the 6400 Account.

  3. If payments are found Accounting will:

    • Submit the completed documentation to transfer the payments to the MFT 31 account.

    • Follow up with research to verify the payments post to the MFT 31 account.

    • Notify TS that all payments received to date were moved into the MFT 31 account.

    If Then
    If no payments are found Accounting will notify TS that no payments were found in the 6400 Account.
    If payments are found
    1. Accounting will submit the completed documentation to transfer the payments to the MFT 31 account.

    2. Follow up with research to verify the payments post to the MFT 31 account.

    3. Notify TS that all payments received to date were moved into the MFT 31 account.

  4. If Accounting has no record of restitution for a case (no Form 14104), they should contact Technical Services for a copy.

  5. All payments received for restitution ordered after August 16, 2010 should be given a DPC (designated payment code) of 026. (Restitution ordered prior to this date should have a DPC of 008.)

    Note:

    Accounting will need to begin to check for these MFT 31 accounts to apply payments directly to during their daily research in the Deposit area. For cases three months or older based on the date of Form 14104, if no MFT 31 has been established, contact TS to research.

  6. The accounting technician should follow up to ensure payments directed to MFT 31 accounts post correctly, and take corrective action if needed.

3.17.243.7.9.6  (10-01-2010)
Processing the Accounting Package

  1. The Accounting package is picked up from the Deposit area and journalized by the assigned Accounting Technician. After journal, the documents are filed in the 6400 account Restitution folder in RACS. Data Control utilizes the folder to balance the reports.

3.17.243.7.10  (02-27-2012)
Maintaining the Criminal Restitution Case File

  1. In cases where additional personal identifiable information (PII) is needed when the restitution check can't be associated with a specific defendant, it will be necessary to contact the U.S. Courts. The Accounting technician should utilize the updated quarterly listing that is provided to SP HQ analyst from the Administrative Office of the U.S. Courts.

  2. A monthly reconciliation report will be completed by KCSPC Accounting Operation, and submitted to SP HQ analyst. This report will reflect all unresolved, unidentifiable restitution payments in the GL account where taxpayer payment information could not be identified. SP HQ analyst will work with KCSPC Accounting Operation and the Administrative Office of U.S. Courts for resolution.

  3. The W&I Criminal Restitution secure email should be used for all confirmations.

  4. Immediately post the restitution amount to the taxpayers account after confirmation has been received

  5. The Department of Justice (DOJ) criminal restitution case files are to be maintained in alphabetical order. The case files should be organized in the following manner

  6. The left side of the case file should contain:

    • A spreadsheet containing the amount of restitution ordered, all payments received, and a running total of the outstanding balance for the case.

    • The Restitution Information Sheet (RIS) or the Form 14104.

    • Miscellaneous items such as e-mails and all correspondence.

    • History sheets.

      Note:

      History sheets must be prepared from receipt of the case and are to include documentation of all actions taken, any pending actions, and any communication/contacts that have been conducted. The most recent history entries should be on top.

  7. The right side of the case file should contain:

    • A current IDRS print, preferably IMFOLI, identifying assessment information.

    • All payment supporting documentation (Form 3244, Form 2424, copies of checks, etc.).

    • The DOJ Summary Report. This should be printed and placed in the file.

    Note:

    Be sure to update the case history sheet and the database - case closed/date/initials, when the case has been closed.

  8. The Kansas City Submission Processing Center Operation will perform a review of the restitution General Ledger(GL) account every quarter to identify discrepancies in account activity. A report of the results will be provided to SP HQ analyst for review and to resolve any discrepancies identified as a result of the quarterly review.

3.17.243.7.11  (10-01-2010)
Closing a Criminal Restitution Case

  1. To close a criminal restitution case all of the following must be met:

    1. Court ordered restitution is satisfied

    2. Accounting records agree with restitution amounts sent from the court

    3. A Civil Assessment has been made by either Technical Services (Exam) and/or Technical Advisory (Collections).

3.17.243.7.12  (10-01-2010)
IRC 7804(c)

  1. Criminal restitution in IRS employee embezzlement cases (6400 Account) – For posting assistance with un-assessed cases, the accounting technician may call Fraud Detection Center or Examination as indicated by case type in the correct area office. Both case type and area office identification instructions are in the procedures for the specific source of payment.

  2. The liability in any case of embezzlement by an IRS employee should be assessed as provided for in the IRC 7804(c) rather than treating it as a Judgment Receivable. Research may indicate that the assessment needs correction to agree with the court decision. These cases are transferred to the 7610 Account at the appropriate campus.

    Note:

    Criminal restitution payments received in a criminal tax case should not be confused with court ordered restitution in an employee embezzlement case.

  3. When there is a court ordered restitution on an employee embezzlement case (7610 Account), a memorandum is sent to the Kansas City Justice Department Coordinator. The memorandum provides the name and social security number (SSN) of all persons ordered to make restitution, amount of restitution payments and the case number.

  4. Employee embezzlement cases are monitored monthly by the Receipt Loss Coordinator to insure that payments are made:

    • If payments are not received, contact the Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge (SAC)

    • If payments are made and not transferred from the Kansas City Justice Department Coordinator, secure the payment information from the probation officer (use the TIGTA SAC) and contact the Kansas City Justice Department Coordinator at 816-325-3799.

  5. Court ordered restitution payments received in Kansas City for employee embezzlement cases (7610 account) will be transferred to the appropriate campus, within 2 days of receipt, via Form 2158.

    Note:

    For additional information and procedures for Assessments Under IRC 7804(c), refer to IRM 3.17.46.5.1, Assessments Under IRC 7804(c) and IRM 3.0.167 Losses and Shortages.

3.17.243.7.13  (10-01-2010)
Internal Management Controls for Criminal Restitution Payments

  1. In accordance with Management Accountability Reviews regulations, managers are responsible for ensuring that internal controls are effective and efficient in day-to-day operations and safeguard against waste, fraud and abuse. This is accomplished by conducting operational or management control reviews to identify weaknesses and mitigate known risks within the managers’ realm of responsibility.

  2. Managers must perform program or "spot" reviews for accuracy and completeness. Problems identified should be discussed with the appropriate functional area for corrective action.

  3. At least one program review must be performed each quarter by the manager or the Reports Analyst.

    Note:

    The first line manager of area working the criminal restitution cases will conduct periodic reviews of cases monthly.

  4. The reviews are to be documented and maintained for a one year period.

  5. Review to ensure:

    • Checks received from the clerk of courts with all required identifying information are processed timely.

    • Notification Form 14104 are being received (via e-mail "W&I Criminal Restitution" ) from the Special Agents assigned to the case and placed in the appropriate case file.

    • Case folders are being prepared, as required by the IRM for each defendant.

    • Ensure all actions taken on a case are documented and payments are correctly associated with an active case.

    • Money received is being recorded in the DOJ ACCESS Application.

    • All appropriate journal actions are being completed timely.

    • Inquiries regarding the receipt and application of payments are being handled on a timely basis.

    • History sheets should be signed by the Technician working the case, as well as anyone reviewing the case file (the initial reviewer, manager, reports analyst, etc.).

  6. Quarterly reports are due Dec. 31, Mar 31, June 30, and Sep 30. The quarterly reports are required to capture:

    1. Total number "Unknown" cases and money amount (separate by month)

    2. Total "unknown" cases associated with an active case and money amount

3.17.243.8  (10-01-2010)
USDA Discrimination Settlement Program

  1. Background: The U.S. Department of Agriculture (USDA) paid a cash settlement and granted loan cancellation to 20,000 farmers and their relatives/decedents. The settlement resulted from a discrimination suit brought against the USDA by the farmers. For 99 percent of the claimants, the settlement amounts fell into three categories:

    • $50,000 cash payment from USDA

    • Forgiveness of the principal and interest on certain debts; these amounts varied by claimant

    • A payment toward tax equal to 25% of the total of the $50,000 payment and the forgiveness of the debt principal, but not the interest

    Most taxpayers received these payments over a period of two years (the cash payment and the debt forgiveness occurred in one year) and the tax payment was remitted to the IRS in the following year. The cash payment and the tax payment (the 25% amount) are taxable income. The forgiveness of debt principal is generally taxable income but may be excludable under certain circumstances. Part of the settlement agreement allows a $12,500 tax credit to offset the tax for the cash payment.

  2. Epiq Systems, Inc. (EPIQ) forwards two lists of cases to the Internal Revenue Service Submission Processing Planning and Analysis (P&A) contact (See Exhibit 3.17.243-13 for a list of USDA Contacts). One list, the 25% "Payee list" is generally issued on 12/15/20XX. The second list, the "Debt Relief Claimant list" is sent one to two months after the Payee list.

    Note:

    "Exception Amounts: " Cancellation of Debt may be a larger settlement amount in which USDA pays taxes equal to 25% of the settlement amount. Some claimants may receive a taxable amount less than $50,000 which will be notated on the listing, along with the amount of decreased tax credit.

  3. This program is worked in the Kansas City IRS Center only.

3.17.243.8.1  (10-01-2014)
USDA Claims - Submission Processing Procedures
Entity

  1. The following procedures apply only to payments that were received prior to January 2013.

  2. Submission Processing P&A will review and then forward the listing of the taxpayers that are eligible for payment to the Entity function. Entity will validate the social security numbers (SSNs) and names on the listing of USDA Settlement Accounts. Entity will "000" all the MFT 30 accounts if a correct TIN is present. Entity will also research for cross reference TINs including EINs for estates or farms and spouse's SSNs. Entity will then notate the cross referenced TIN(s) on the spreadsheet so the payment is applied to the correct account. Any incorrect SSNs with no viable cross references will be notated on the lists. After Entity has completed the review and included notations about questionable entity cases, they will send the lists back to the Submission Processing P&A contact. Entity will set up Form 1041 Estates in certain situations. The P&A contact will return the lists to Epiq, with a copy sent to Accounts Management P&A. The Submission Processing P&A contact will return a list of questionable entity cases and request further information on the claimant account. (estimated work time - 7 days)

    Submission Processing P&A

  3. The Submission Processing P&A contact will forward the list of all cases to the Department of Justice (DOJ) requesting the total dollar amount present on the listing and provide the Agency Location Code (ALC) to transfer the funds (See Exhibit 3.17.243-13 for a list of USDA Contacts). The Submission Processing P&A contact will request that DOJ include an expedite request when requesting the funds to be transferred to the Internal Revenue Service (estimated time 24 -48 hours).

  4. The Submission Processing P&A contact will also inform the Accounting RRACS Team that an IPAC has been ordered and provide the amount of the IPAC.

    Note:

    The DOJ forwards the request for funds to Bureau of Fiscal Services (BFS) for payment from USDA. BFS processes the request from DOJ and expedites the IPAC funds to Kansas City Submission Processing Campus Accounting function.

    Accounting

  5. Accounting RRACS Team will alert the Submission Processing P&A contact, and the contact in the team that's processing the cases, when the funds arrive via IPAC. (Estimated time 24–48 hours after BFS sends the payment).

  6. When IPAC transmission is received, the RRACS DBA prepares Form 3244 if current year transactions or Form 8758 if prior year transactions and hand carries to URF/XSF to be cleared. The RRACS DBA prepares Form 8166 and inputs to RRACS. A copy of Form 8166 together with Form 3244 or Form 8758 is hand carried to the team processing the cases for input of the credit to XSF. When the IPAC funds have been received and placed in the appropriate account (URF/XSF), there should be no delay in processing the credits to the claimant's account(s). Credits are applied to the accounts with a TC 670 and a TC 570 to hold (freeze) the credit. AM P&A Staff monitors the accounts and releases the freeze, if necessary.

    Note:

    Kansas City Accounts Management (KCAM) P&A analyst monitors the listings received from EPIQ Systems Inc. Accounts Management (AM) function places a notice hold on taxpayers' accounts to stop issuance of balance due notices when appropriate. AM also responds to taxpayer questions/issues and releases frozen refunds when appropriate.

    Note:

    Taxpayers should be advised of their right to seek assistance from Taxpayer Advocate Service to avoid undue taxpayer burden or violation of taxpayer's rights.

    Note:

    EPIQ Systems Inc. is not permitted to receive any additional taxpayer or tax account information other than requests to obtain better taxpayer entity information ( i.e., SSNs/EINs, Names, etc.). Due to disclosure requirements they will only be informed that the TIN or name they provided does not match IRS records. If they are unable to provide a better TIN at a later time, for the cases that are originally received, IRS (Submission Processing Entity) will verify the information and, if verifiable, a request (by Submission Processing P&A) will be forwarded to DOJ to request additional funds for the claimants on the updated verified listing.

  7. The USDA Project is reported under program code 85390 with appropriate function, i.e., 390, 710, etc.

3.17.243.9  (04-16-2014)
FTD Point of Contacts

  1. The Department of the Treasury's Bureau of Fiscal Services (BFS) and the Internal Revenue Service (IRS) are leading an effort to modernize the Federal Tax Deposit (FTD) system. The Electronic Federal Tax Payment System (EFTPS) provides an electronic system for reporting and paying FTDs. EFTPS has replaced the paper-based FTD system. EFTPS benefits both taxpayers and the Federal Government by providing greater reporting efficiencies and expediting the availability of funds and investment decision-making information for the Treasury.

  2. Before EFTPS replaced the paper-based FTD system, taxpayers paid their FTD payments with Form 8109. Their financial institution forwarded the funds, Form 8109, and Advice of Credit (AOC) to the Federal Reserve Bank (FRB),who would forward the Form 8109 and AOC to the IRS.

  3. There is a FTD Point of Contact (POC) located at the following Submission Processing Campuses: Austin, Cincinnati, Kansas City, and Ogden. If a FTD payment made with Form 8109 prior to 1/1/2011 cannot be located, a referral should be issued to the FTD POC.

3.17.243.10  (10-01-2011)
Numbering Forms and Documents In Accounting

  1. The intended purpose of this section is to provide instruction to properly number assessment documents and/or forms received for processing in the Accounting Function.

  2. Key duties and responsibilities in authorizing, processing, recording, and reviewing transactions are separated among individuals. Duties need to be divided or segregated among different people to reduce the risk of error or fraud. No one individual should control all key aspects of a transaction or event. Separation of duties is necessary to maintain the integrity of the Accounting function.

  3. Throughout this section, references are made to other IRMs in relation to instructions necessary to properly perform tasks in this IRM 3.17.243, Miscellaneous Accounting. Management shall be responsible for having at least one copy of each of the referenced IRMs in the work area’s library. However, at management’s discretion, it may be deemed worth-while for each employee to possess a copy of a particular manual. In either case, management shall be required to inform the appropriate personnel that the area must be part of the IRM distribution pattern.

  4. Unless otherwise stated, these procedures apply to the Accounting Functions in the Submission Processing Campuses.

3.17.243.10.1  (10-01-2011)
Assigning a Document Locator Number (DLN)

  1. A DLN is a controlled number assigned to every return or document.

  2. Documents to be numbered are received directly from other operational areas within a campus or transferred in.

  3. Each document should be numbered using the ink color assigned to the year of receipt.

    Color Year of Receipt Examples
    Green 0 or 5 2000 and 2005
    Purple 1 or 6 2001 and 2006
    Red 2 or 7 2002 and 2007
    Black 3 or 8 2003 and 2008
    Blue 4 or 9 2004 and 1999

    Note:

    The DLN color code is still in effect in those areas using the 13 -digit numbering machines. In the areas using the 14 digit numbering machine, the DLN color will always be black.

  4. Each document will be numbered with an 11 or 13 digit DLN.

3.17.243.10.2  (10-01-2011)
Creating a DLN

  1. File Location Code - first and second digits

    1. Indiana - 35

    2. Michigan - 38

    3. All other states, provinces or countries - 31

  2. Tax Class - third digit

    1. NMF - always "6"

    2. MF - MFT determines the tax class

  3. Document Code - fourth and fifth digits. All forms have a specific doc code (see chart for forms and doc codes listed).

  4. Julian Date - sixth, seventh, and eighth digits (3-digit number).

  5. Blocking series - ninth, tenth, and eleventh digits (3-digit number). See Exhibit 3.17.243-5

  6. Item number - twelfth and thirteenth digits. The first document in a blocking series will always be "00" .

  7. List Year

    1. NMF - double digits (example: 08)

    2. MF - single digit (example: 8)

3.17.243.10.3  (10-01-2011)
Service Center Control File (SCCF)

  1. Each document is assigned a DLN.

    1. The DLN is established on the SCCF when the document is being processed and remains on the SCCF until either accountability is transferred to Enterprise Computing Center or the document is deleted.

    2. RACS sends Form 813 to the Data Conversion function Unit to establish the DLN on SCCF.

    3. When the document posts the Form 813 is sent to Data Control for balancing to SCCF on the SCF 11-42 CRL.

  2. For additional procedures, refer to IRM 3.17.30.1.2, SCCF Control Concepts.

3.17.243.10.4  (10-01-2011)
Closing Agreements

  1. Tax Class will always be "6" .

  2. Doc Code for Closing Agreements will always be "54" .

  3. Julian date will be prior Saturday and always current year.

  4. Blocking series will be 400-434.

    Note:

    The memorandum is the official document. The DLN must be placed in the upper right corner of the memorandum.

  5. MFT will always be "28" .

  6. Transaction code will always be "150" .

  7. Abstract number will always be "139" .

3.17.243.10.5  (04-25-2014)
Numbering Title 31 Monetary Penalty Assessments

  1. The Tax Class will be 6;

  2. The Doc Code will be 54;

  3. The blocking series that is to be used is 435-440;

  4. The abstract number is 147;

  5. The Penalty Reference Number (PRN) will be 779;

  6. The MFT is 28; and

  7. The Transaction Code (TC) is 240.

  8. The memorandum for the Title 31 penalty assessment will also be the official document and the DLN must be placed in the upper right corner of the memo.

3.17.243.10.6  (10-01-2011)
Form 1331, Notice of Adjustment, and Form 1331-B, Notice of Adjustment

  1. Tax Class will always be "6" .

  2. Doc Code for all abatements will be "54" .

  3. Julian date will be prior Saturday or Sunday and always current year.

  4. Blocking series will depend on Tax Form/MFT.

    If NMF MFT is: Blocking Series will be:
    08 1
    12 1
    14 4
    17 1
    20 2
    21 2
    23 3
    28 4
    32 3
    45 4
    53 5
    69 (with SSN) 2
    69 (with EIN) 3
    74 4
    76 4
    80 8
    89 4

    Note:

    This list is not all inclusive. For more information see IRM 3.17.46, Automated Non-Master File Accounting.

  5. 3354/5734 Julian date is prior Sunday and the blocking series is determined by MFT.

  6. Always current year in DLN.

    Figure 3.17.243-3
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.17.243-4
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.17.243.10.7  (10-01-2011)
Form 2363, Master File Entity Change

  1. Form 2363 is used by area office Examination and Accounts Management and Field Assistance personnel and CSCO personnel to make changes (names, addresses, dates, etc.) to the Business Master File (BMF), Individual Master File (IMF), and Non-Master File (NMF).

  2. The completed form is forwarded to the appropriate support group of the function for input via IDRS or ANMF.

  3. Numbering

    1. FLC (File Location Code) - 17, 31, 35 or 38

    2. Tax Class - NMF "6"

    3. Doc Code - 63 (always)

    4. Julian Date - current date

    5. Blocking Series - 100-999

  4. Valid transaction codes

    1. NMF - 011, 013, 014, 015

    2. MF - 000, 020, 030, 011, 012, 013, 014, 015, 016, 017, 019, 040, 041, 070, 090, 091

    Figure 3.17.243-5
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.17.243.10.8  (10-01-2011)
Form 3753, Manual Refund Posting Voucher

  1. Use Doc Code 45 for all refunds (Master File and Non-Master File).

  2. Tax Class, if MF, will depend on the form number/MFT.

  3. Tax Class, if NMF, will always be "6" .

  4. Blocking series for NMF will depend on the form number/MFT. Never use 000 blocking on NMF.

  5. Blocking for MF can be 000–999.

  6. Julian date in DLN will be "schedule date" on Form 3753.

3.17.243.10.9  (10-01-2011)
Helpful Hints

  1. 11 numbers in DLN on Form 813.

  2. 13 numbers in DLN on document.

  3. Do not mix MFTs when numbering.

  4. Do not mix accounts when numbering (e.g., 6550 & 6560).

  5. When preparing Form 813, debit amount goes on left side and credit amount goes on right side.

  6. Cross reference the DLNs on debit and credit side of the document.

  7. On Form 3210 to RACS, accounts cannot be mixed (e.g., 4620 cannot be placed on the same Form 3210 as 6550).

  8. On Form 3210 to RACS, Form 2424 and Form 3809 cannot be listed on the same Form 3210.

  9. 4430 Account cannot be mixed with anything.

  10. 4430, 6550, and 6560 Accounts do not get DLNs.

  11. Tapes must be attached to each Form 813 before work is accepted by the RACS Team.

  12. Tapes should be run from the document, not from the Form 813.

  13. Do not cross out information on Form 813. If a mistake is made, the entire Form 813 must be redone.

  14. Double check your work. Make sure you attach the correct Form 813 to the matching DLN.

  15. Never change money or post partial amount from any document (Form 2424, Form 2158, Form 3809, etc.).

3.17.243.11  (10-01-2011)
Related Handbooks

  1. The following Internal Revenue Manuals are frequently used in conjunction with this IRM:

    • IRM 3.10.72 - Receiving, Extracting, and Sorting

    • IRM 3.11.10 - Revenue Receipts

    • IRM 4.4.3- Credit Transfers and Reprocessing Returns

3.17.243.12  (10-01-2014)
Taxpayer Advocate Case Procedures, National Service Level Agreement (SLA)

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business/Self-Employed (SB/SE) Division, Tax Exempt/Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) Division, that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rest outside of TAS. These agreements are known as service level agreements (SLAs).

  2. The SLAs are located at: http://tas.web.irs.gov under the heading "Policy/Procedures/Guidance" .

  3. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria as described in IRM 13.1.7, TAS Case Criteria and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. See IRM 13.1, Taxpayer Advocate Case Procedures for additional clarification.

Exhibit 3.17.243-1 
Terms

TERMS EXPLANATION
DLN (Document Locator Number) An 11 or 13 digit number assigned to every document
Julian Date The number of the day of the year (out of the total days in the year)
Name Control No more than four characters that are usually underlined
Tax Period A six digit element representing the year and month in which the tax period ended, in most cases
TIN (Taxpayer Identification Number) A nine digit number that must be present on all forms, returns and documents received for processing
Transaction (Received) Date The transaction date must always be present on a revenue receipt document

Exhibit 3.17.243-2 
Abstract Numbers

Abstract Numbers Table
MFT Abstract(s)
03 009-024
  026-098
  101-124
  303-310
  322, 323, 324
  326-329
  340–390
  392-398
  411-432
29 160
  162
  194, 195
  221, 222, 233, 235, 236, 237
30 221, 222
31 221, 222
49 163, 164
50 151-154
  182, 183
  213, 214
  221, 222
  237, 238
61 001-009
  013-035
  040
  221, 222
74 165, 167, 169
76 159
  161, 163, 164, 165, 167, 169
  200, 201
  203-206
  209
  224-228
  237
  450, 451, 452
77 218
78 217

Exhibit 3.17.243-3 
Tax Return Information Chart

Tax Return Number MFT Code Tax Class Valid Tax Periods
11 61 4 196206-198706
11-B 62 4 196206-198006
11-C 63 4 Not before 196206
706GS(T) 77 5 Not before 198612; month must be 12
706GS(D) 78 5 Not before 198612; month must be 12
706/706NA 52 5 Must be 000000
709/709A 51 5 Not before 196112; month must be 12 for periods ending 197012 or earlier and after 198112; month must be 03, 06, 09 or 12 for periods 197103 through 198112.
720 03 4 Not before 196302; month must be 03, 06, 09 or 12
730 64 4 Not before 196206
940 10 8 Not before 196112; month must be 12
940EZ 10 8 Not before 198912; month must be 12
941 01 1 Not before 196203; month must be 03, 06, 09 or 12
942 04 1 Not before 196203; month must be 03, 06, 09 or 12
943 11 1 Not before 196112; month must be 12
944 14 1 Not before 200612; month must be 12
945 16 1 Not before 199412; month must be 12
990 67 4 Not before 197012
990EZ 67 4 Not before 198901
990C 33 3 Not before 196112
990PF 44 4 Not before 197001
990T 34 3 Not before 196112
1040, 1040A 30, 31 2 Not before 196212
1041 05 2 Not before 196112
1041A 36 4 Not before 197012
1042 12 1 Not before 198512; month must be 12
1065 06 2 Not before 196112
1066 07 3 Not before 198712
1120 02 3 Not before 196112
2290 60 4 Not before 195607
4638 58 4 197007-198009
4720 50 4 Not before 197001
1041PF 37 4 197001-198712
5227 37 4 Not before 198812; month must be 12
8038, 8038G, 8038GC, 8038T 46 3 Not before 198412
8278 13 3 Not before 198012; month must be 12, except with Reference Code 613, 643, 644, 650, 655, 656, 657, 661, 676 or 677
8752 15 2 Not before 199012; month must be 12
CT-1 09 7 Not before 196203; month must be 03, 06, 09 or 12 for periods ending before January 1, 1976; month must be 12 for periods ending after December 31, 75

Exhibit 3.17.243-4 
Transaction Code Conversion Table

TRANSACTION CODE CONVERT TO
163, 166 160
167 161
176 170
177 171
186 180
196 190
197 191
238 234
239 235
246 240
276 270
277 271
286 280
336 340 or 190 (IRM 3.12.21)
337 341
370 DO NOT ADD
386, 388, 389 DO NOT ADD 380
400 DO NOT ADD
402 DO NOT ADD
420, 421 DO NOT ADD
424 DO NOT ADD
570 DO NOT ADD
606 600
666 700
667 820
673 670
706 700
716 710
736 730
756 700
768 764
776 770
777 771
796 790
806 800
807 802
836 830
842 841
846 840
856, 876 850
896 820
897 822

Exhibit 3.17.243-5 
Tables for Blocking Series

Document Codes 48 and 58 (Form 3809)
BMF and IMF
000-299 Doc Code 58 Transferring to NMF
300-399 Doc Code 58 Transferring to Account 4620
400-499 Doc Code 58 Transferring to Account 6800
500-699 Doc Code 48 Transferring to NMF
700-799 Doc Code 48 Transferring to Account 4620
800-898 Doc Code 48 Transferring to Account 6800
899 Doc Code 48 Reclamation Period Date Expiration
900-999 Doc Code 48 Erroneous Refunds
900-999 Doc Code 58 Child Support Offsets
 
Document Codes 24 and 38
NMF Only
100-199 True Tax Class 1 Withholding and FICA
200-299- True Tax Class 2 Individual Income
300-399 True Tax Class 3 Corporation
400-499 True Tax Class 4 Excise
500-549 True Tax Class 5 Estate
550-599 True Tax Class 6 Gift
700-799 True Tax Class 7 Railroad Retirement
800-899 True Tax Class 8 Futa

Exhibit 3.17.243-6 
Blocking Series Chart For Doc Code 45 and 48

Blocking Series Chart for Document Code "45/48" For Miscellaneous Processing (i.e. SF 1098, 1081, ID-Theft Processing
AO/SC Code Blocking Series Description Document Code 45 Trans Code Freeze Code Processed By
SC 220-299 Repayment of Erroneous IMF/BMF Form 3245 720 - Receipt & Control
SC 500–899 IMF Form 12857 - DC 48 841   Accounting
ULC 500-519 IMF/BMF SF 1098
Form 3245
841/740 - Accounting
ULC 520-529 ANMF SF 1098
Form 3245
841/740 - Accounting
ULC 530-539 IMF-IRAF SF 1098
Form 3245
841/740 - Accounting
ULC 540-549 IMF/BMF/ANMF TFS 3813
Form 3245
843/742 - Accounting
ULC 550-554 IMF/BMF SF 1081 Debit/POC TRACS
Form 3245
843 - Accounting
ULC 550-553 IMF/BMF SF 1081 Debit Settlement Authorized Form 3245 840   Accounting
ULC 555 Intercepted Checks Manually Processed 1098 Listing SF 1098/Form 3245 841 P- Accounting
ULC 666 IMF/BMF/ANMF Limited Payability Cancellation Credit/TRACS Form 3245 740 S- Accounting
SC 745–749 IMF External Leads/Refund Repayment - Form 3809 (DC 48) 700   Accounting
ULC 800 Repayment of Erroneous Refunds ANMF Form 3245 720 - Receipt & Control
ULC 888 IMF/BMF/ANMF SF 1081 Credit/RC/UCC TRACS Form 3245 841 - Accounting
ULC 889 Use for MFT 06/08 Only SF 1081 Credit/RC/UCC TRACS Form 3245 841 - Accounting
SC 920–929 IMF Form 12857 -DC 45 840   Accounting
SC 945–949 IMF IDT Credit - Form 3809 (DC 48) 841   Accounting
ULC 55555 Intercepted Checks Master File Tape Processing 841 P- Computer Generated
ULC 66666 Limited Payability Master File Tape Processing 740 S- Computer Generated
SC 77777 Undelivered ELF (Electronic Filed Return) Master File Tape Processing 841 - Computer Generated
SC 88888 Recertified Credit Master File Tape Processing 841 - Computer Generated
SC 88899 Returned Credit (Due to CHKCL) Master File Tape Processing 841 P- Computer Generated
SC 99999 Undelivered Check Master File Tape Processing 740 S- Computer Generated
SC 99999 Returned Checks Master File Tape Processing 841 P- Computer Generated

Exhibit 3.17.243-7 
Valid BMF Transaction Code Table

Trans Code Section Doc Code MFT Code
Debit (+) Credit (-)      
150   01 51 46
150   01 51, 52 ALL
(except 13, 46 and 61)
150   02-19 51, 52 ALL
(except 46 and 61)
157   30-33 51, 52 ALL
(except 46, 77 and 78)
160   01 51, 52 ALL
(except 12, 13 and 46)
160   02-19 51, 52 ALL
(except 46)
  161 02-19 51 ALL
(except 46)
  161 02-19 52 ALL
(except 46, 77 and 78)
166 167 02-19 52 ALL
(except 46)
170   01-19 52 02, 33, 34, 44
170   01-19 51 02, 05, 33, 34, 44
  171 02-19 51 ALL
(except 07, 46, 77 and 78)
  171 02-19 52 ALL
(except 05, 07, 46, 77 and 78)
176 177 02-19 52 ALL
(except 07, 46, 77 and 78)
180   01 51, 52 01, 03, 09, 10, 11, 16
180   02-19 51, 52 01, 03, 09, 10, 11, 12, 16
  181 02-19 51, 52 ALL
(except 07, 46, 77 and 78)
186 187 02-19 52 ALL
(except 07, 46, 77 and 78)
190 191 02-19 51, 52 ALL
196 197 02-19 52 ALL
234   01-19 51, 52 36, 44, 67
  235 02-19 51, 52 ALL
(except 46, 77 and 78)
238 239 02-19 52 ALL
(except 46, 77 and 78)
240 241 01 51, 52 13
240 241 02-19 51, 52 ALL
240   01 51 46
246   02-19 52 06, 07
  247 02-19 52 06, 07
270   01 51, 52 ALL
(except 12 and 13)
270   02-19 51, 52 ALL
  271 02-19 51 ALL
(except 78)
  271 02-19 52 ALL
272   30-33 51, 52 ALL
276 277 02-19 52 ALL
280   01 51, 52 ALL
(except 12 and 13)
280   02-19 51, 52 ALL
  281 02-19 51, 52 ALL
286   02-19 52 ALL
290   01 51, 52 ALL
(except 46)
290 291 02-19 51, 52 ALL
(except 46)
294   01 51, 52 ALL
(except 12, 13, 46, 77 and 78)
294 295 02-19 51, 52 ALL
(except 46, 77 and 78)
298   01 51, 52 ALL
(except 12, 13 and 46)
298 299 02-19 51, 52 ALL
(except 46)
300   01 51, 52 ALL
(except 13 and 46)
300 301 02-19 51, 52 ALL
(except 46)
304   01 51, 52 ALL
(except 12, 13, 46, 77 and 78)
304 305 02-19 51, 52 ALL
(except 46, 77 and 78)
308   01 51, 52 ALL
(except 12, 13 and 46)
308 309 02-19 51, 52 ALL
(except 46)
320   01 51, 52 ALL
(except 12 and 13 )
320 321 02-19 51, 52 ALL
336 337 02-19 52 ALL
340 341 02-19 51, 52 ALL
340   02-19 51 46
340 341 30-33 51, 52 ALL
342   30-33 51, 52 ALL
350   01 51, 52 ALL
(except 12, 13 and 46)
350 351 02-19 51, 52 ALL
(except 46)
360   01 51, 52 ALL
(except 12, 13 and 46)
360   02-19 51, 52 ALL
(except 46)
  361 02-19 51, 52 ALL
(except 46)
380   02-19 51, 52 ALL
(except 46)
380   02-19 51 46
386   02-19 52 ALL
(except 46)
388   01 52 ALL
(except 12, 13 and 46)
388 389 02-19 52 ALL
(except 46)
  400 02-19 51 46
402 400 02-19 52 ALL
(except 46)
402   01 51 ALL
(except 12)
402   02-19 51 46
420   30-33 52 ALL
(except 46, 77 and 78)
  421 30-33 52 ALL
422 423 30-33 52 ALL
(except 46, 77 and 78)
424   30-33 52 ALL
(except 46)
  431 02-19 52 ALL
(except 46, 77 and 78)
450   01 51, 52 ALL
(except 12, 13 and 46)
450 451 02-19 51, 52 ALL
(except 46)
460 462 30-33 51, 52 ALL
(except 46)
470   30-33 51, 52 ALL
(except 46)
471 472 30-33 51, 52 ALL
(except 46)
471   30-33 51 46
473 474 30-33 51, 52 ALL
(except 46, 77 and 78)
475   30-33 52 ALL
(except 46, 77 and 78)
  478 30-33 52 ALL
(except 46, 77 and 78)
480 481 30-33 51, 52 ALL
(except 46)
482 483 30-33 51, 52 ALL
(except 46)
488 489 30-33 51, 52 ALL
(except 46, 77 and 78)
520 521 30-33 51, 52 ALL
(except 46)
522   30-33 51, 52 ALL
(except 46)
530   30-33 51, 52 ALL
(except 46)
531 532 30-33 51, 52 ALL
(except 46)
535 534 02-19 51, 52 ALL
(except 46)
537   30-33 51 ALL
(except 46, 77 and 78)
537   30-33 52 ALL
(except 46)
550 560 30-33 51, 52 ALL
(except 46)
564   30-33 51, 52 ALL
(except 46, 77 and 78)
570 571 30-33 51, 52 ALL
(except 46)
572   30-33 51, 52 ALL
(except 46)
582 583 30-33 51, 52 ALL
(except 46)
590   01 52 ALL
(except 46, 77 and 78)
  590 30-33 51, 52 ALL
(except 46, 77 and 78)
591 592 30-33 51, 52 ALL
(except 46, 77 and 78)
593 594 30-33 51, 52 ALL
(except 46, 77 and 78)
595 596 30-33 51, 52 ALL
(except 46, 77 and 78)
597 598 30-33 51, 52 ALL
(except 46, 77 and 78)
599   30-33 51, 52 ALL
(except 46, 77 and 78)
  600 02-19 51, 52 ALL
(except 46)
607 606 02-19 52 ALL
(except 46)
609 608 02-19 52 ALL
(except 46)
611 610 02-19 51, 52 ALL
(except 46)
612   02-19 51, 52 ALL
(except 46)
621 620 02-19 51, 52 ALL
(except 46, 77 and 78)
622   02-19 51, 52 ALL
(except 46, 77 and 78)
  630 20-23 51 46
*632 630 20-23 51, 52 02, 05, 33, 34
632   20-23 51 46
*637 636 20-23 52 02, 05, 33, 34
641 640 02-19 51, 52 ALL
(except 46)
642   02-19 51, 52 ALL
(except 46)
  650 02-19 51, 52 ALL
(except 02, 33, 46, 77 and 78)
651   02-19 51, 52 ALL
(except 46, 77 and 78)
652   02-19 51, 52 ALL
(except 46, 77 and 78)
661 660 02-19 51, 52 ALL
(except 46, 77 and 78)
662   02-19 51, 52 ALL
(except 46, 77 and 78)
671 670 02-19 51, 52 ALL
(except 46)
672   02-19 51, 52 ALL
(except 46)
679 678 02-19 51, 52 ALL
(except 46, 77 and 78)
681 680 02-19 51, 52 ALL
(except 46)
682   02-19 51, 52 ALL
(except 46)
691 690 02-19 51, 52 ALL
(except 46)
692   02-19 51, 52 ALL
(except 46)
  694 02-19 51 46
695 694 02-19 51, 52 ALL
(except 46)
701 700 02-19 51, 52 ALL
(except 46)
702   02-19 51, 52 ALL
(except 46)
  706 02-19 52 ALL
(except 46)
712 710 02-19 51, 52 ALL
(except 46, 77 and 78)
  716 02-19 52 ALL
(except 46, 77 and 78)
721 720 02-19 51 ALL
(except 46)
721 720 02-19 52 ALL
(except 46, 77 and 78)
722   02-19 51 ALL
(except 46)
722   02-19 52 ALL
(except 46, 77 and 78)
731 730 02-19 51 ALL
(except 46)
731 730 02-19 52 ALL
(except 46, 77 and 78)
732   02-19 51 ALL
(except 46)
732   02-19 52 ALL
(except 46, 77 and 78)
  736 02-19 52 ALL
(except 46, 77 and 78)
  740 02-19 51 ALL
(except 46)
  740 02-19 52 ALL
(except 46, 77 and 78)
742   02-19 51 ALL
(except 46)
742   02-19 52 ALL
(except 46, 77 and 78)
  756 02-19 52 ALL
(except 46, 77 and 78)
  760 02-19 51 ALL
(except 46 and 78)
  760 02-19 52 ALL
(except 46, 77 and 78)
762   02-19 51 ALL
(except 46 and 78)
762   02-19 52 ALL
(except 46, 77 and 78)
*767 766 02-19 51, 52 ALL
(except 46, 77 and 78)
  770 02-19 51 ALL
  770 02-19 52 ALL
( 77 and 78)
771   02-19 51 ALL
(except 46)
771   02-19 52 ALL
(except 46, 77 and 78)
772   02-19 51 ALL
772   02-19 52 ALL
(77 and 78)
777 776 02-19 52 ALL
780 781 30-33 51, 52 ALL
(except 46)
782   30-33 51, 52 ALL
(except 46)
  788 30-33 51, 52 ALL
(except 46)
792 790 02-19 51, 52 ALL
(except 46)
  796 02-19 52 ALL
(except 46)
802 800 02-19 51, 52 05
807 806 02-19 51, 52 05
820 821 02-19 51, 52 ALL
(except 46)
  822 02-19 51, 52 ALL
(except 46)
824   02-19 51, 52 ALL
(except 46)
826   02-19 52 ALL
(except 46, 77 and 78)
830 832 02-19 51, 52 ALL
(except 46, 77 and 78)
836   02-19 52 ALL
(except 46, 77 and 78)
840 841 02-19 51 ALL
(except 46 and 78)
840 841 02-19 52 ALL
(except 46, 77 and 78)
  842 02-19 51 ALL
(except 46 and 78)
  842 02-19 52 ALL
(except 46, 77 and 78)
843   02-19 51 ALL
(except 46)
843   02-19 52 ALL
(except 46, 77 and 78)
844   30-33 51 ALL
(except 46)
844   30-33 52 ALL
(except 46, 77 and 78)
  845 30-33 51, 52 ALL
(except 46)
846   02-19 52 ALL
(except 46)
850 851 02-19 51, 52 ALL
(except 46)
  852 02-19 51 ALL
(except 46, 77 and 78)
  852 02-19 52 ALL
(except 46)
856   02-19 52 ALL
(except 46)
912 914 30-33 51, 52 ALL
(except 46)
930 932 30-33 52 ALL
(except 46)
940 942 30-33 51, 52 ALL
(except 46, 77 and 78)
946   30-33 52 ALL
(except 46, 77 and 78)
960 961 30-33 51, 52 ALL
(except 46)
962   30-33 51, 52 ALL
(except 46)
  976 02-19 51, 52 ALL
(except 46)
*MFT is not valid for the section.

Exhibit 3.17.243-8 
Valid IMF Transaction Code Table

Trans Code Section Doc Code MFT Code
Debit (+) Credit (-)      
150   01 51, 52 30, 31
150   02-19 51, 52 30, 31, 55
160   01 51, 52 30, 31
160 161 02-19 51, 52 30, 31, 55
166 167 02-19 52 30,31,55
170   01 51, 52 30, 31
170 171 02-19 51, 52 30, 31, 55
176 177 02-19 52 30, 31, 55
190 191 02-19 51, 52 30, 31, 55
196 197 02-19 52 30, 31, 55
200 201 02-19 51, 52 30, 31, 55
240 241 02-19 51, 52 30, 31, 55
270   01 51, 52 30, 31
270 271 02-19 51, 52 30, 31, 55
272   30-33 51, 52 30, 31, 55
276 277 02-19 52 30, 31, 55
280   01 51, 52 30, 31
280 281 02-19 51, 52 30, 31, 55
286   02-19 52 30, 31, 55
290   01-19 51, 52 30, 31, 55
  291 02-19 51, 52 30, 31, 55
294   01 51, 52 30, 31
294 295 02-19 51, 52 30, 31, 55
298   01 51, 52 30, 31
298 299 02-19 51, 52 30, 31, 55
300   01 51, 52 30, 31
300 301 02-19 51, 52 30, 31, 55
304   01 51, 52 30, 31
304 305 02-19 51, 52 30, 31, 55
308   01 51, 52 30, 31
308 309 02-19 51, 52 30, 31, 55
310 311 02-19 51, 52 30, 31, 55
320   001 51, 52 30, 31
320 321 02-19 51, 52 30, 31, 55
336 337 02-19 52 30, 31, 55
340 341 02-19 51, 52 30, 31, 55
340 341 30-33 51, 52 30, 31, 55
342   30-33 51, 52 30, 31, 55
350   01 51, 52 30, 31
350 351 02-19 51, 52 30, 31, 55
360   01 51, 52 30, 31
360 361 02-19 51, 52 30, 31, 55
380   02-19 51, 52 30, 31, 55
386   02-19 52 30, 31, 55
388   01 52 30, 31
388 389 02-19 52 30, 31, 55
402 400 02-19 52 30, 31, 55
402   01 51 30, 31, 55
411 410 02-19 51, 52 30, 31, 55
412   02-19 51, 52 30, 31, 55
417 416 02-19 52 30, 31, 55
420* 421* 30-33 52 30, 55
422 423 30-33 52 30, 31, 55
424   30-33 52 30, 55
425   30-33 52 30, 31, 55
  430 01 52 30, 31
  430 02-19 51, 52 30, 55
  431 02-19 52 30, 31, 55
450   01 51, 52 30, 31
450 451 02-19 52 30, 31, 55
460 462 30-33 51, 52 30, 31, 55
470   30-33 51, 52 30, 31, 55
471 472 30-33 51, 52 30, 31, 55
473   30-33 51, 52 30, 31, 55
474 475 30-33 51, 52 30, 55
480 481 30-33 51, 52 30, 31, 55
482 483 30-33 51, 52 30, 31, 55
490 496 30-33 51, 52 30, 31, 55
500 502 30-33 51, 52 30, 31, 55
510 516 30-33 51, 52 30, 31, 55
517   30-33 51, 52 30, 31, 55
520 521 30-33 51, 52 30, 31, 55
522   30-33 51, 52 30, 31, 55
530   30-33 51, 52 30, 31, 55
531 532 30-33 51, 52 30, 31, 55
535 534 02-19 51, 52 30, 31, 55
537   30-33 51, 52 30, 31, 55
540 542 30-33 51, 52 30, 31, 55
550 560 30-33 51, 52 30, 31, 55
564   30-33 51, 52 30, 31, 55
570 571 30-33 51, 52 30, 31, 55
572   30-33 51, 52 30, 31, 55
576 577 02-19 51, 52 30, 31, 55
582 583 30-33 51, 52 30, 31, 55
590   30-33 51, 52 30, 55
591 592 30-33 51, 52 30, 55
593 594 30-33 51, 52 30, 55
595   30-33 51, 52 30, 55
599   30-33 51, 52 30, 55
  600 02-19 51, 52 30, 55
607 606 02-19 52 30, 31, 55
609 608 02-19 52 30, 31, 55
611 610 02-19 51, 52 30, 31, 55
612   02-19 51, 52 30, 31, 55
*632 630 20-23 51, 52 30, 31
*637 636 20-23 52 30, 31
641 640 02-19 51, 52 30, 31, 55
642   02-19 51, 52 30, 31, 55
661 660 02-19 51, 52 30, 31, 55
662   02-19 51, 52 30, 31, 55
667 666 02-19 52 30, 31, 55
671 670 02-19 51, 52 30, 31, 55
672   02-19 51, 52 30, 31, 55
681 680 02-19 51, 52 30, 31, 55
682   02-19 51, 52 30, 31, 55
691 690 02-19 51, 52 30, 31, 55
692 694 02-19 17, 18, 19, 24, 34, 38, 51, 52 30, 31, 55
695   02-19 19, 24, 34, 51, 52 30, 31, 55
701 700 02-19 51, 52 30, 31, 55
702   02-19 51, 52 30, 31, 55
  706 02-19 52 30, 31, 55
712 710 02-19 51, 52 30, 55
  716 02-19 52 30, 55
721 720 02-19 51, 52 30, 31, 55
722   02-19 51, 52 30, 31, 55
731 730 02-19 51, 52 30, 31, 55
732   02-19 51, 52 30, 31, 55
  736 02-19 52 30, 31, 55
742 740 02-19 51, 52 30, 31, 55
762 760 02-19 51, 52 30, 31, 55
765 764 02-19 51, 52 30, 31, 55
767 766 02-19 51, 52 30, 31, 55
  768 02-19 52 30, 31, 55
772 770 02-19 51, 52 30, 31, 55
777 776 02-19 52 30, 31, 55
780 781 30-33 51, 52 30, 31, 55
782   30-33 51, 52 30, 31, 55
783 784 30-33 51, 52 30, 31, 55
  788 30-33 51, 52 30, 31, 55
802 800 02-19 51, 52 30, 31, 55
807 806 02-19 52 30, 31, 55
820 821 02-19 51, 52 30, 31, 55
  822 02-19 51, 52 30, 31, 55
824   02-19 51, 52 30, 31, 55
826   02-19 52 30, 31, 55
*830 832 02-19 51, 52 30, 55
*836   02-19 52 30, 55
840 841 02-19 51, 52 30, 31, 55
843   02-19 51, 52 30, 31, 55
844 845 30-33 51, 52 30, 31, 55
846   02-19 52 30, 31, 55
850 851 02-19 51, 52 30, 31, 55
  852 02-19 51, 52 30, 31, 55
856 859 02-19 52 30, 31, 55
876   02-19 52 30, 31, 55
890 892 02-19 51, 52 30, 31, 55
896   02-19 52 30, 31, 55
912 914 30-33 51, 52 30, 31, 55
915   30-33 52 30, 31, 55
919 917 30-33 51, 52 30, 31, 55
930 932 30-33 52 30, 31, 55
940 942 30-33 51, 52 30, 31, 55
960 961 30-33 51, 52 30, 31, 55
962   30-33 51, 52 30, 31, 55
  976 02-19 51, 52 30, 31, 55
  977 02-19 51, 52 30, 31, 55
*Section 20-23 is not present with MFT-CD 55.

Exhibit 3.17.243-9 
Campus Codes

Campus Code
Andover 08
Atlanta 07
Austin 18
Brookhaven 19
Cincinnati 17
Fresno 89
Kansas City 09
Memphis 49
Ogden 29
Philadelphia 28

Exhibit 3.17.243-10 
List of U.S. Attorney Case Types

U.S. Attorney Case Types
Bankruptcy—Chapter 7
Bankruptcy—Chapter 11
Bankruptcy—Chapter 12
Bankruptcy—Chapter 13
Bankruptcy—Other
Commercial Litigation
Tax Lien/Foreclosure (28 USC 2410)
Probate
Recovery of Overpayments Made by Government
Government Contract
Miller Act
Judgment for Restitution Following Criminal Conviction
Quiet Title
Collection (from Taxpayer)
Refund (to Taxpayer)
Wrongful Levy
Criminal Restitution to a Federal Party

Exhibit 3.17.243-11 
Case Management System District Codes

DJ# District   DJ# District
5–1 N.D. Alabama (Ala)   5–46 Nevada (Nev)
5–2 M.D. Alabama   5–47 New Hampshire (N.H.)
5–3 S.D. Alabama   5–48 New Jersey (N.J.)
5–6 Alaska   5–49 New Mexico (N Mex)
5–8 Arizona (Ariz)   5–50 N.D. New York (N.Y.)
5–9 E.D. Arkansas (Ark)   5–51 S.D. New York
5–10 W.D. Arkansas   5–52 E.D. New York
5–11 N.D. California (Cal)   5–53 W.D. New York
5–11E E.D. California   5–54 E.D. North Carolina (NC)
5–12 S.D. California   5–54M M.D. North Carolina
5–12C C.D. California   5–55 W.D. North Carolina
5–13 Colorado (Colo)   5–56 North Dakota (N.D.)
5–14 Connecticut (Conn)   5–57 N.D. Ohio (Oh)
5–15 Delaware (Del)   5–58 S.D. Ohio
5–16 Dist. of Columbia (D.C.)   5–59 E.D. Oklahoma (Okla)
5–17 N.D. Florida (Fla)   5–59N N.D. Oklahoma
5–17M M.D. Florida   5–60 W.D. Oklahoma
5–18 S.D. Florida   5–61 Oregon (Ore)
5–19 N.D. Georgia (Ga)   5–62 E.D. Pennsylvania (Pa)
5–19M M.D. Georgia   5–63 M.D. Pennsylvania
5–20 S.D. Georgia   5–64 W.D. Pennsylvania
5–21 Hawaii (Ha)   5–65 Puerto Rico (P Rico)
5–22 Idaho (Id)   5–66 Rhode Island (R.I.)
5–23 N.D. Illinois (Ill)   5–67 South Carolina (S.C.)
5–24 C.D. Illinois   5–69 South Dakota (S.D.)
5–25 S.D. Illinois   5–70 E.D. Tennessee (Tenn)
5–26 N.D. Indiana (Ind)   5–71 M.D. Tennessee
5–26S S.D. Indiana   5–72 W.D. Tennessee
5–27 N.D. Iowa   5–73 N.D. Texas (Tex)
5–28 S.D. Iowa   5–74 S.D. Texas
5–29 Kansas (Kan)   5–75 E.D. Texas
5–30 E.D. Kentucky (Ky)   5–76 W.D. Texas
5–31 W.D. Kentucky   5–77 Utah
5–32 E.D. Louisiana (La)   5–78 Vermont (Vt)
5–32M M.D. Louisiana   5–79 E.D. Virginia (Va)
5–33 W.D. Louisiana   5–80 W.D. Virginia
5–34 Maine (Me)   5–81 E.D. Washington (Wash)
5–35 Maryland (Md)   5–82 W.D. Washington
5–36 Massachusetts (Mass)   5–83 N.D. West Virginia (W. Va.)
5–37 E.D. Michigan (Mich)   5–84 S.D. West Virginia
5–38 W.D. Michigan   5–85 E.D. Wisconsin (Wisc)
5–39 Minnesota   5–86 W.D. Wisconsin
5–40 N.D. Mississippi (Miss)   5–87 Wyoming (Wyo)
5–41 S.D. Mississippi   5–88 Canal Zone (Cn. Sn.)
5–42 E.D. Missouri (Mo)   5–90 Virgin Islands (Vir. Is.)
5–43 W.D. Missouri   5–91 Guam
5–44 Montana (Mont)   5–94 American Samoa
5–45 Nebraska (Neb)      

Exhibit 3.17.243-12 
\DOJ Collection Paralegal Contacts for Tax Division Cases

Region Districts #
Northern Connecticut 5–14
N.D. Illinois 5–23
C.D. Illinois 5.24
S.D. Illinois 5.25
N.D. Indiana 5–26
S.D. Indiana 5–26S
Maine 5–34
Massachusetts 5–36
E.D. Michigan 5–37
W.D. Michigan 5–38
New Hampshire 5–47
N.D. New York 5–50
S.D. New York 5–51
E.D. New York 5–52
W.D. New York 5–53
N.D. Ohio 5–57
S.D. Ohio 5–58
Rhode Island 5–66
Vermont 5–78
 
Southern N.D. Alabama 5–1
M.D. Alabama 5–2
S.D. Alabama 5–3
E.D Arkansas 5–9
W.D. Arkansas 5–10
N.D. Florida 5–17
M.D. Florida 5–17M
S.D. Florida 5–18
N.D. Georgia 5–19
M.D. Georgia 5–19M
S.D. Georgia 5–20
E.D. Louisiana 5–32
M.D. Louisiana 5–32M
N.D. Mississippi 5–40
S.D. Mississippi 5–41
South Carolina 5–67
 
Western Alaska 5–6
Arizona 5–8
N.D. California 5–11
E.D. California 5–11E
S.D. California 5–12
C.D. California 5–12C
Colorado 5–13
Hawaii 5–21
Idaho 5–22
Montana 5–44
Nevada 5–46
Oregon 5–61
Utah 5–77
E.D. Washington 5–81
W.D Washington 5–82
E.D. Wisconsin 5–85
W.D, Wisconsin 5–86
Wyoming 5–87
   
American Samoa 5–94
Guam 5–91
 
Eastern Delaware 5–15
District of Columbia 5–16
E.D. Kentucky 5–30
W.D. Kentucky 5–31
Maryland 5–35
New Jersey 5-48
E.D. North Carolina 5–54
M.D. North Carolina 5–54M
N.D. North Carolina 5–55
E.D. Pennsylvania 5–62
M.D. Pennsylvania 5–63
W.D. Pennsylvania 5–64
E.D. Tennessee 5–70
M.D. Tennessee 5–71
W.D. Tennessee 5–72
E.D. Virginia 5–79
W.D. Virginia 5–80
N.D. West Virginia 5–83
S.D. West Virginia 5–84
Canal Zone 5–88
Puerto Rico 5–65
Virgin Islands 5–90
 
Central N.D. Iowa 5–27
S.D. Iowa 5–28
Kansas 5–29
Minnesota 5–39
E.D. Missouri 5–42
W.D. Missouri 5–43
Nebraska 5–45
North Dakota 5–56
South Dakota 5–69
E.D. Oklahoma 5–59
N.D. Oklahoma 5–59N
W.D. Oklahoma 5–60
 
Southwest New Mexico 5–49
N.D. Texas 5–73
S.D. Texas 5–74
E.D. Texas 5–75
W.D. Texas 5–76
 

Exhibit 3.17.243-13 
List of Tax Division Case Types

Case
Type
Description
3201 Taxpayer Refund Suit/Original Tax
3202 Taxpayer Refund Suit/Additional Tax
3203 Refund Suit with Government Counterclaim
3204 Frivolous Return Penalties (IRC 6702 and 6703)
3205 Tax Return Preparer Penalties (IRC 6694 and 6695)
3206 Abusive Tax Shelter Penalty (IRC 6700)
3207 Windfall Profits Tax Case
3208 Partnership Adjustments Pursuant to IRC 6226 or 6228
3211 Injunction Suit to Prevent Enforcement or Making of an Assessment, Lien or Levy
3212 Other Injunction Suit in Defense of a Monetary Claim
3213 Declaratory Relief Suit (other than IRC 7428)
3214 Suppression Suit
3215 Mandamus Suit
3221 Tort Suit v. IRS Personnel and/or the U.S.
3222 Tort Actions under IRC 7217 Seeking Civil Damages for Alleged Unauthorized Disclosure of Tax Info.
3230 Action to Review Jeopardy and/or Termination Assessment to IRC 7429
3240 Proceedings to Perpetuate Testimony
3250 Wrongful Levy Action
3290 Other Action Against the U.S. Involving the Defense of a Monetary Claim
4296 Miscellaneous Bankruptcy Cases Received Prior to April 1, 1983
4297 Bankruptcy—Motion for Order to File Returns or Submit Books for Examination re: Pre-Petition Tax
4298 Bankruptcy—Miscellaneous Matters Involving No or Little Legal Activity (Including Notice of 1st Meeting of Creditors)
4299 Bankruptcy—Complaint Requesting Turnover of Property of the Estate or Alleging a Preference
4300 Bankruptcy—Proceedings Which Contest the Substantive Merits of the Tax Claim
4301 Bankruptcy—Proceedings Which Contest the Tax Claim on Procedural Grounds Other than Priority
4302 Bankruptcy—Proceedings Which Contest the Priority to be Accorded the Tax Claim
4303 Bankruptcy—Complaint to Determine Dischargeability of Tax Claim
4304 Bankruptcy—Complaint to Sell Property
4305 Bankruptcy—Objection to Confirmation of Plan or to Disclosure Statement
4306 Bankruptcy—All Other Miscellaneous Matters
4307 Bankruptcy—Request by United States for the Lifting of the Automatic Stay
4308 Bankruptcy—Request for Injunction or Contempt by Debtors and/or Trustee
4309 Bankruptcy—Motion to Dismiss Proceeding or to Convert to Chap. 7 Proceedings or to Appoint Trustee
4310 Interpleader Action by Third Party
4320 Suit to Reduce Assessment to Judgment
4330 Suit to Foreclose Tax Lien
4340 Suit to Set Aside a Fraudulent Conveyance
4350 Probate Proceedings
4360 Action to Obtain Writ of Entry
4370 Suit to Establish Third Party Liability under 26 USC, Sec. 3505
4380 Intervention to Enforce Lien
4390 Forcible Opening of Safety Deposit Box
4400 Suit for Erroneous Refund
4410 Failure to Honor Levy Suit
4420 Suit Against Fiduciaries under 31 USC, Sec. 191
4430 Insolvency Proceedings Other than Bankruptcy
4440 Sec. 2410 Case Assigned to the Lien Unit
4450 Sec. 2410 Case Reopened—Offer or Other Reason
4490 Other Recovery Suit on Behalf of the U.S.
4491 Injunctive Suit Against Return Preparer or Shelter Promoter
5501 Freedom of Information Act Suit
5502 Privacy Act Suit, Including Action Against the U.S. for Alleged Violation Thereof
5510 Declaratory Relief Suit Filed Pursuant to Sec. 7428
5521 Suit to Prevent State and Local Taxation of Federal Property
5522 Suit by State or Local Taxing Authorities Seeking to Tax the Federal Government
5525 Other Suit Involving Government Immunity
5530 Third Party Challenge to IRS or Treasury's Administrative Ruling or Regulation-Related Activity
5540 Injunction Suit by a Summoned Party or Taxpayer to Prevent Enforcement of a Summons
5541 Proceeding to Quash Summons Pursuant to Sec. 7609(B)(2)
5542 Proceeding to Quash Formal Document Request Pursuant to 26 USC, Sec. 982
5543 Proceeding to Quash and Enforce Summonses Issued on Behalf of Tax Treaty Partners
5544 Proceeding to Quash and Enforce Domestic Summonses Which Req. Production of Foreign-Based Documents
5550 Summons Enforcement/Special Agent Referral to the Tax Division/General
5551 Summons Enforcement/Special Agent Referral to the Tax Division/Tax Pool Analysis
5552 Summons Enforcement/Special Agent Referral to the Tax Division/Tax Shelter
5553 Summons Enforcement/Special Agent Referral to the Tax Division/Church Issue
5554 Summons Enforcement/Special Agent Referral to the Tax Division/Domestic Summons for Foreign-Based Records
5555 Summons Enforcement/Special Agent Referral to the Tax Division/Tax Treaty Enforcement
5560 Summons Enforcement/Special Agent Referral to the U.S. Attorneys/General
5561 Summons Enforcement/Special Agent Referral to the U.S. Attorneys/Tax Pool Analysis
5562 Summons Enforcement/Special Agent Referral to the U.S. Attorneys/Tax Shelter
5563 Summons Enforcement/Special Agent Referral to the U.S. Attorneys/Church Issue
5564 Summons Enforcement/Special Agent Referral to the U.S. Attorneys/Domestic Summons for Foreign-Based Records
5565 Summons Enforcement/Special Agent Referral to the U.S. Attorneys/Tax Treaty Enforcement
5570 Summons Enforcement/John Doe Summons/General
5571 Summons Enforcement/John Doe Summons/Tax Pool Analysis
5572 Summons Enforcement/John Doe Summons/Tax Shelter
5573 Summons Enforcement/John Doe Summons/Church Issue
5574 Summons Enforcement/John Doe Summons/Domestic Summons for Foreign-Based Records
5575 Summons Enforcement/John Doe Summons/Tax Treaty Enforcement
5580 Summons Enforcement/Revenue Agent or Officer Referral to the Tax Division/General
5581 Summons Enforcement/Revenue Agent or Officer Referral to the Tax Division/Tax Pool Analysis
5582 Summons Enforcement/Revenue Agent or Officer Referral to the Tax Division/Tax Shelter
5583 Summons Enforcement/Revenue Agent or Officer Referral to the Tax Division/Church Issue
5584 Summons Enforcement/Revenue Agent or Officer Referral to Tax Div./Domestic Summons for Foreign-Based Records
5585 Summons Enforcement/Revenue Agent or Officer Referral to the Tax Division/Tax Treaty Enforcement
5590 Summons Enforcement/Revenue Agent or Officer Referral to the U.S. Attorneys/General
5591 Summons Enforcement/Revenue Agent or Officer Referral to the U.S. Attorneys/Tax Pool Analysis
5592 Summons Enforcement/Revenue Agent or Officer Referral to the U.S. Attorneys/Tax Shelter
5593 Summons Enforcement/Revenue Agent or Officer Referral to the U.S. Attorneys/Church Issue
5594 Summons Enforcement/Revenue Agent or Officer Referral to the U.S. Attorneys/Domestic Summons for Foreign-Based Records
5595 Summons Enforcement/Revenue Agent or Officer Referral to the U.S. Attorneys/Tax Treaty Enforcement
5600 Other Non-Collection Suit
5608 Other Non-Collection Matter

Exhibit 3.17.243-14 
Department of Justice Glossary

Common Cause
of Action
Narrative Description
of Case
Administrative Office of U.S. Courts Central support entity for the Judicial Branch. The Administrative Office (AO) provides a wide range of administrative, legal, financial, management, program, and information technology services to the federal courts. Located in Washington D.C.
Advisory/Advisory Probation Liaison Function in Collection that provides technical services to the field and handles various specialized programs. Specific Advisors have been designated as probation liaisons and are responsible for monitoring cases within their districts in which the defendant is required to comply with IRS-related conditions of probation, including the payment of restitution to the IRS. Advisory used to be called Technical Support prior to being split into Technical Services Exam and Technical Services Advisory.
Assistant United States Attorney (AUSA) Attorneys who work for the U.S. Department of Justice in local U.S. Attorney's offices. Generally, the prosecutors in federal criminal tax cases are AUSAs. There are 93 U.S. Attorneys stationed throughout the United States and its possessions.
Bankruptcy Decision in case directs payment to DOJ rather than to Insolvency.
CIMIS (Criminal Investigation Management Information System) Computer database used to track, among other things, data on investigations undertaken by Criminal Investigation. CIMIS is used by special agents to monitor compliance with the conditions of probation.
Clerk of Court Chief Administrative officer of the court. Among the clerk's many functions are: Maintaining the records and dockets of the court
Paying all fees, fines costs and other monies collected into the U.S. Treasury
Administering the court's jury system
Providing interpreters and court reporters
Sending official court notices and summons
Providing courtroom support services
Conditional Probation Expiration Date The date on which the defendant's term of supervised release or probation ends. Noncompliance with the terms of probation must be reported to court prior to this date.
Conditions of Probation When the court orders an individual convicted of a tax or tax related crime to perform certain acts while they are on probation; these are known as conditions of probation. If the conditions involve the IRS, such as requirements to file returns, cooperate with the IRS, and/or pay restitution to the IRS, these are referred to as IRS-related conditions of probation. The failure to comply with conditions of probation may result in the defendant's probation being revoked.
Defendant/Offender The party accused of a criminal offense. May also be referred to as the Taxpayer when the party is ordered to comply with IRS-related conditions of probation.
Department of Justice, Tax Division An agency within the Department of Justice. The Tax Division represents the United States and its officers in most civil and criminal litigation that concerns or relates to the internal revenue laws. Tax Division attorneys work closely with the IRS and United States Attorney's Offices to develop tax administration policies; handle civil trial and appellate litigation in federal and state courts; pursue federal grand jury investigations; and handle criminal prosecutions and appeals.
Department of Justice, U.S. Attorney's Office The U.S. Attorney is the chief law enforcement officer of the United States within his or her particular jurisdiction. There are 93 United States Attorneys stationed throughout the United States and its possessions. United States Attorneys conduct most of the trial work in which the United States is a party.
Embezzlement by Employee Case in which an assessment has been made against an employee or former employee under IRC 7804.
Enforce Levy Failure to honor levy—IRC 6332(c).
Foreclosure Tax Lien IRS has requested a judicial foreclosure of the federal tax lien rather than an administrative seizure.
Fraud Suspense Coordinator Coordinator responsible, with Technical Services, for cases in Fraud and/or Grand Jury Suspense. Coordinator also monitors SBSE adherence with IRM 25.1.4.5 requirements.
Fraud Technical Advisor (FTA) The FTA serves in an advisory and support role in both Examination and in Collection. Their primary role is to assist in the development of fraud and support revenue agents and officers.
Financial Litigation Unit (FLU) Unit in every U.S. Attorney's Office which has responsibility for collecting and enforcing all civil and criminal judgements on behalf of the United States.
Form 870, Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Over-assessment Form that allows the IRS to immediately assess a defendant’s tax liabilities. By signing the form, the defendant waives the restrictions on assessment and collection, such as the requirement that the IRS issue a Notice of Deficiency.
Form 4135, Criminal Investigation Control Notice Form used by CI to place account controls or update account controls on IDRS. In probation cases, there should be a transaction code (TC) 910 entered on the account
Form 8821, Tax Information Authorization Form signed by the taxpayer that authorizes a designated person to inspect and/or receive confidential information in any IRS office for the type of tax and the years or periods listed.
Form 13308, Criminal Investigation Closing Report (Tax and Tax related only) This is the form that is initially completed by CI for each closed and discontinued tax and tax related investigation. After completion, the form is forwarded to the appropriate Technical Services Fraud Coordinator and Advisory Probation Liaison. Thereafter, it is used by all parties to monitor compliance.
ICS (Integrated Collection System) A computer system used by Collection consisting of dedicated hardware, software and communications which permit profiled employees to access certain active Collection cases and take actions on those cases.
Judgment and Commitment (J&C) or Judgment and Commitment Order (JCO) This is the official court document that is signed by the judge and details the sentence imposed by the court. The J&C will contain the information needed to calculate the Conditional Probation Expiration Date. Any award of restitution to the IRS must be included in the J&C Discrepancies between the J&C and the plea agreement or sentence imposed orally at the sentencing hearing should be brought to the attention of the prosecutor.
Questionable Refund Program (QRP) The purpose of the Questionable Refund Program (QRP) is identifying and developing schemes for the purpose of referring and supporting high-impact criminal tax and related financial investigations. (Revenue Protection is no longer part of the QRP program). The goal of QRP is to investigate and prosecute promoters and conspirators to foster confidence in the tax system and enhance voluntary compliance. See IRM 9.5.3.2.5, Questionable Refund Program.
PACER (Public Access to Court Electronic Filed Records) An electronic court notification/information system providing ready information to the public on court records. PACER maintains records and provides a current status of district court cases. PACER may be used by authorized IRS employees to check the status of cases in litigation.
Plea Agreement Agreement reached as a result of negotiations between the accused and the prosecutor to dispose of a criminal case. The agreement may include concessions regarding the type and length of the defendant’s sentence and include conditions of probation or supervised release. A defendant may agree to pay restitution to the IRS as part of a plea agreement.
Pre-Sentence Report (PSR) To assist the court in imposing a prison sentence or granting probation, the probation service may initiate a pre-sentence investigation and generate a report. The investigation and report concern any prior criminal record of the defendant and personal background, relevant conduct, individual characteristics, financial condition, and any circumstances that may have affected the defendant's behavior. In the course of a pre-sentence investigation, the probation officer will usually consult with the special agent for information about the defendant's cooperation (or lack thereof) during the investigation, the defendant's relevant conduct, the defendant's mental and physical history, whether the defendant made any payments on the tax deficiencies involved in the criminal investigation, other tax obligations due the government, and data regarding any other matters that might be helpful to the court in imposing a sentence.
Probate Decision in case directs payment to DOJ rather than to Advisory.
Probation A sentencing option in the federal courts. With probation, instead of sending an individual to prison, the court releases the person to the community and orders him or her to complete a period of supervision monitored by a U.S. probation officer and to abide by certain conditions. A violation of probation can lead to revocation of probation and the imposition of a prison sentence.
Probation Officers (POs) District court employees who work with offenders "post-conviction," after they're tried and found guilty of federal crimes and also after they're released from prison. They also help ensure that offenders released to the community obey the law rather than commit further crime.
Prosecutor A public official who prepares and conducts the prosecution of persons accused of crime. In federal district courts, the prosecutor is usually an Assistant U.S. Attorney from the local U.S. Attorney’s Office.
Reduce Tax to Judgment Only includes cases in which the IRS has requested the judgment. Does not include cases where the Department of Justice has counter-claimed and obtained judgment such as in 100% Penalty refund suits.
Release Date Date on which defendant is released from prison. A defendant’s projected release date can be found on the Bureau of Prisons web site.
Restitution The act of making good, or giving the equivalent for, any loss, damage or injury. Through a restitution order, a court can require a defendant in a criminal tax case to pay money to the IRS in order to redress the losses he or she has inflicted on the Federal Treasury.
Return Preparer Program (RPP) The Return Preparer Program (RPP) involves claims on Federal income tax returns prepared by unscrupulous return preparers who knowingly claim excessive deductions and exemptions on returns prepared for clients. The clients may or may not have knowledge of the excessive deductions and exemptions claimed. See IRM 9.5.3.2.6, Return Preparer Program.
Scheme Detection Center – Ogden The Scheme Detection Center in Ogden monitors compliance with orders to pay restitution to the IRS in Questionable Refund Program (QRP) and Return Preparer Program (RPP) cases.
Seizure Bid Default Sale under IRC 6335/deferred pay.
Suit for Refund Suit to recover a partial payment of an assessment. Only includes divisible taxes such as 100% Penalty, Employment and Wagering taxes.
Supervised Release A term of supervision is served after a person is released from prison. The court imposes supervised release during sentencing in addition to the sentence of imprisonment. Unlike parole, supervised release does not replace a portion of the sentence of imprisonment but is in addition to the time spent in prison. U.S. probation officers supervise persons on supervised release.
Tax Division An agency within the Department of Justice. The Tax Division represents the United States and its officers in most civil and criminal litigation that concerns or relates to the internal revenue laws. Tax Division attorneys work closely with the IRS and United States Attorney’s Offices to develop tax administration policies; handle civil trial and appellate litigation in federal and state courts; pursue federal grand jury investigations; and handle criminal prosecutions and appeals.
Tax Crime and Tax Related Crime Tax and Tax Related Crimes are violations of the criminal provisions of Title 26, the Internal Revenue Code, and violations of Title 33, Title 18 §§ 286, 287, 371K, 371B or 514).
Technical Services (TS) - Exam The role of TS is to support examiners by providing current technical and procedural guidance to management and technical personnel. See IRM 4.8, Technical Services.
Transaction Code 910 (TC 910) Transaction code used to monitor the accounts of defendants that are on probation. Reversed/terminated by TC 911.
Transaction Code 914 (TC 914) Transaction code normally placed on a taxpayers' account at the outset of the subject criminal tax investigation to indicate CI involvement and prevent the posting of most original input transactions on tax modules. Reversed/terminated by TC 912.
Transaction Code 916 (TC 916) Transaction code used on Questionable Refund Program investigations. The Scheme Detection Center will input TC 916 and TC 918 as appropriate on tax modules.
Title 18 Criminal Investigation has jurisdiction over certain tax and tax-related offenses under Title 18 of the United States Code, such as conspiracies to defraud the United States for the purpose of impeding and impairing the IRS; conspiracies to commit substantive tax offenses (18 USC 371); filing false claims for refund or conspiracy to file false claims for refund (18 USC 286-287); and making false statements (18 USC 1001).
Title 26 The provisions of the Internal Revenue Code, which are found in Title 26 of the United States Code. Title 26 crimes include attempts to evade or defeat tax (26 USC § 7201), willful failure to collect or pay over tax (26 USC § 7203), and willful failure to file or pay tax (26 USC § 7203).
Unassessable Refund Unassessable erroneous refund suit that was initiated by Collection. Does not include litigation instituted by Criminal Investigation to recover fraudulent refunds.
United States Attorney The U.S. Attorney is the chief law enforcement officer of the United States within his or her particular jurisdiction. There are 93 United States Attorneys stationed throughout the United States and its possessions. United States Attorneys conduct most of the trial work in which the United States is a party.
28 USC 2410 Case Judicial foreclosure where a federal tax lien is affecting the property, Quiet Title, Interpleader, etc.

Exhibit 3.17.243-15 
USDA Contacts

Department of Justice Contacts:    
Name: Telephone: E-mail:
Susan Ullman 202-616-0680 Susan.Ullman@usdoj.gov
Maria Swails-Brown   Maria.Swails-Brown@usdoj.gov
Lavavia White   Lavavia.White@usdoj.gov
     
Bureau of Fiscal Services (Formerly Financial Management Services):    
DOJ overnights the IPAC request to the address/contact below:
Dorothy Washington 202-874-6664 Dorothy.Washington@fms.treas.gov
Dept. of Treasury - Judgement Fund    
3700 East-West Highway    
Room 6E15    
Hyattsville, MD 20782    
     
EPIQ Systems Inc:    
Richard Bithell 503-350-5855 RBithell@epiqsystems.com
Alicia Lopez 503-350-5989 ALopez@epicsystems.com
     
Kansas City Submission Processing:    
Carla Marchand 816-325-3848 Carla.M.Marchand@irs.gov
     
Kansas City Accounts Management    
Teresa Olsen 816-325-2870 Teresa.M.Olsen@irs.gov
     

Exhibit 3.17.243-16 
Write-Off Cover Memorandum

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