5.1.2  Remittances, Form 809 and Designated Payments

Manual Transmittal

November 26, 2014

Purpose

(1) This transmits a topic based revision to IRM 5.1.2, Field Collection Procedures, Remittances, Form 809, and Designated Payments to incorporate procedural changes based on ACA provision 1501.

Material Changes

(1) This IRM has only been updated for the Affordable Care Act (ACA) Provision 1501: Requirement to Maintain Minimum Essential Coverage (Individual Shared Responsibility) (IRC §5000A) as identified below. Content unrelated to the ACA provisions was not reviewed for currency or accuracy.

  • IRM 5.1.2.8.1.4 was revised to include DPC 36, Voluntary Shared Responsibility Payment (SRP) for use by Field Collection.

  • IRM 5.1.2.8.1.8 was added, DPCs for a Shared Responsibility Payment (SRP) Module, to describe the DPCs allowed and not allowed for posting payments to SRP modules.

Effect on Other Documents

This IRM supersedes IRM 5.1.2, Remittances, Form 809, and Designated Payments, published September 26, 2014.

Audience

The target audience is revenue officers in SB/SE Field Collection (FC).

Effective Date

(01-01-2015)

Related Resources

Field Office Payment Processing page on the Submission Processing website at:http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm

Dretha Barham
Director, Collection Policy
Small Business/Self Employed

5.1.2.1  (06-20-2013)
Remittance Processing Overview

  1. This IRM provides procedures for Field Collection (FC) remittance processing. All remittances secured by Field Collection (FC) employees (whether in the field or in the office, whether in person or by mail) must be transmitted promptly to meet Service goals for timely deposit. See Title 31, U.S. Code § 3302.

  2. These procedures apply primarily to revenue officers (ROs). Procedures for managers and clerical staff are incorporated under the applicable subsection.

  3. Submission Processing is responsible for processing the remittances. See the Field Office Payment Processing page website at:http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm. This site provides a list of the key remittance processing contacts and additional information.

    Note:

    Much of the information contained on the web site is designated "Official Use Only (OUO)" and the information is primarily for FC employees.

  4. Form 795/795A, Daily Report of Collection Activity, is used to transmit remittances. Remittances must be sent to the appropriate designated Submission Processing Center on the day they were collected or as soon as possible the next business day to meet Service goals for timely deposit and avoid unnecessary delays in processing. See IRM 5.1.2.4, Daily Report of Collection Activity — Form 795/795A for further information on report procedures.

    Note:

    Local management is responsible for establishing a procedure to handle the processing of remittances and returns that are directed to employees who are away from the office per IRM 5.1.2.4(3).

5.1.2.2  (01-24-2012)
Physical Security Controls

  1. All employees and managers are required to adhere to the minimum protection standards for remittances, set forth in the following three IRM sections:

    1. IRM 10.2, Physical Security Program — specifies physical security controls.

    2. IRM 1.4.6, Managers Security Handbook — provides guidelines for management when performing their role to ensure established security standards are followed.

    3. IRM 3.0.167, Losses and Shortages — provides procedures for losses and shortages of tax collections, disbursement losses, deposit discrepancies, and transfer of accountability.

  2. The following items must be safeguarded at all times:

    • Remittances, in whatever form

    • Form 809, Receipt for Payment of Taxes

    • The official "Received" date stamp

    • Personally Identifiable Information (PII)

5.1.2.2.1  (09-26-2014)
Remittances

  1. Ensure money and securities, etc., are safeguarded at all times, while in the office, on Telework, and/or making field calls. Follow the procedures displayed in the table below for safeguarding remittances.

    SAFEGUARDING REMITTANCES
    In the Office Each office is responsible for developing procedures to address physical security controls over remittances while they are in the custody of Field Collection (FC) employees because physical security facilities vary.
    In general, to safeguard remittances, place the remittances in a safe or a designated locking desk drawer or file cabinet.
    Telework Under the National Agreement, "At a minimum, this will require that all records and data be kept under lock and key when not in the possession of the employee."
    Provide and use some type of locking desk drawer or file cabinet to safeguard remittances. See Article 50 Section 5 B of the National Agreement.
    Field Calls by Car Place remittances in a locked compartment of the vehicle.
    Field Calls by Public Transportation Place remittances in a locked brief case or other secure place.
  2. Date-stamp remittances for the business day they are received.

  3. Use traceable overnight service or other approved method for shipment of remittances, returns, and posting documents to ensure the security of tax receipts during transit.

  4. Follow up when the Submission Processing Teller Unit doesn't acknowledge receipt within 14 workdays per IRM 5.1.2.4.5.1, Form 3210 and Form 795/795A Follow Up.

5.1.2.2.2  (09-26-2014)
Form 809

  1. Form 809, Receipt for Payment of Taxes, is a receipt book that contains receipts to issue to taxpayers (customers) who request a receipt for cash (or check) payment of their taxes. Safeguard Form 809 at all times.

  2. Form 809 receipt books are required to be returned to the issuing Submission Processing Center when the employee is no longer eligible for an 809 receipt book.

    Example:

    Revenue officer changes position, moves to a field office in another Area, or separates from the Service.

    Note:

    Managers must include the return of the Form 809 receipt book as part of the clearance process upon an employee's separation from the Service.

    Note:

    A revenue officer selected to perform On-the-Job-Instructor (OJI) duties is not considered a change in position that would require the issuance or return of the Form 809 receipt book.

5.1.2.2.3  (06-20-2013)
Official Received Date Stamp

  1. The official Received date stamp is used to record received dates for remittances and secured returns.

  2. Safeguard the official Received date stamp at all times. Keep it in a secure office location when not in use to protect assigned stamps against unauthorized or indiscriminate use.

    Caution:

    Provide the stamp with high security.

  3. The official Received date stamp should contain the following elements:

    Internal Revenue Service

    Received

    Month, Day, Year

    Area Director (City, State)


    Note:

    Received date stamps which have the "office location" rather than the Area Director location are acceptable.

    Note:

    Handwritten (legible) recordation of the received date information is also acceptable as long as it contains all of the elements listed above, employee signature, and employee title. A date stamp in addition to the handwritten recordation is not needed.

  4. When you use the date stamp:

    1. Place the date stamp in the middle of the front page of a secured return (or other document that requires a date stamp).

    2. Make sure the stamp placement will not obscure any information that the taxpayer wrote/printed/entered on the return/document.

  5. If a document is date-stamped in error, cross-out the incorrect date and initial the correction. This is a necessary step because the Data Conversion employees (who are on production by document) are not required to turn documents over, and the Service must maintain received date integrity.

5.1.2.2.4  (09-26-2014)
Personally Identifiable Information

  1. Personally Identifiable Information (PII) is a specific type of sensitive information that includes the personal data of taxpayers, IRS employees, contractors, job applicants, and visitors to IRS offices. Safeguard PII at all times.

  2. Take care to protect personally identifiable information (PII) at all times. Any loss of PII could result in information being compromised to commit identity theft. To learn more about protecting PII and deterring identity theft access the Privacy, Governmental Liaison, and Disclosure website at: http://irweb.irs.gov/AboutIRS/bu/pipds/default.aspx. Also see IRM 5.1.12.2,Identity Theft, andIRM 10.5.3.1.3.1, Identity Protection Program Servicewide Identity Theft Guidance.

  3. Report immediately if you suspect or know of a potential PII loss (including the loss of a deposit package).

    Example:

    A check was mailed to the Submission Processing Center but it was never received. This would be a reportable PII incident.

  4. Report a PII loss, in the following order to:

    1. Your manager.

    2. Computer Security Incident Response Center (CSIRC) at 1–866–216–4809.

    3. Treasury Inspector General for Tax Administration (TIGTA) hotline per IRM 5.1.2.2.6.1, Report to TIGTA.

5.1.2.2.5  (09-26-2014)
Payment Loss Procedures

  1. Report any loss to your manager immediately if you:

    • experience a cash shortage.

    • receive counterfeit funds.

    • are missing negotiable checks or other instruments.

    • are missing seized property.

  2. For additional information relating to payment loss, refer to:

    • IRM 5.1.3.7.3, Property and Records Protection.

    • IRM 3.0.167, Losses and Shortages.

    • IRM 5.1.2.2, Physical Security Controls.

  3. Report any potential theft or embezzlement to:

    1. Treasury Inspector General for Tax Administration (TIGTA) hotline, per IRM 5.1.2.2.6.1, Report to TIGTA and

    2. Remittance Security Coordinator (RSC) at the designated Submission Processing Center.

  4. Prepare a brief narrative report.

  5. Send the report (and attachment(s)) to TIGTA per IRM 5.1.2.2.6.1 , Report to TIGTA.

    Note:

    TIGTA will conduct an investigation and report the results of the investigation.

  6. Send a copy of the report (and attachments) to the RSC.

    Note:

    The RSC will monitor the loss and take steps to ensure relief is granted to the taxpayer expeditiously. The RSC will control the case and protect the taxpayer from incorrect notices while TIGTA conducts it's investigation. The RSC will ensure that incorrect penalties and/or interest are abated.

5.1.2.2.5.1  (06-20-2013)
Replacement Check

  1. Request a replacement check from the taxpayer, if applicable.

  2. Prepare Form 795/795A, Daily Report of Collection Activity, to submit the replacement check (with the current date).

  3. Complete Form 3465, Adjustment Request.

  4. Attach Form 3465 to the replacement check to request that the interest and penalty be abated.

  5. Send the replacement check and Form 3465 with Form 795/795A, to Submission Processing.

    Note:

    The remittance perfection technician will post the check with the current date. Form 5919, Teller’s Error Advice, will not be issued for the replacement check unless other error conditions exist.

  6. For lost remittances that are subsequently discovered a replacement is not necessary. Follow the same procedures above as if the remittance was a replacement.

    Exception:

    If the remittance has an expiration date and the current date is beyond it, then follow the procedures above to request and process a replacement remittance.

5.1.2.2.6  (09-26-2014)
Stolen and/or Altered Remittance

  1. Sometimes a taxpayer will provide evidence that a remittance that he/she gave or sent to the IRS has been stolen and/or altered.

  2. Identify a stolen or altered remittance by the characteristics displayed in the table below:

    IDENTIFYING A STOLEN OR ALTERED REMITTANCE
    Type of Remittance Characteristics
    Altered Remittance
    • Endorsed or made payable to someone else (other than Treasury or IRS)

    • May include changes to money amount

    Stolen Remittance
    • May or may not be cashed

    • May have been stolen to steal the taxpayer's identity

  3. Report any potential theft or embezzlement to:

    1. Treasury Inspector General for Tax Administration (TIGTA) hotline, per IRM 5.1.2.2.6.1 , Report to TIGTA and

    2. Remittance Security Coordinator (RSC) at the designated Submission Processing Center.

      Note:

      A list of Remittance Security Coordinators (RSC) can be found at http://win.web.irs.gov/SP/Security_Info_&_Internal_Control/Remittance_Security_Coordinators.htm

  4. If a taxpayer provides evidence that a remittance has been stolen and/or altered.

    1. Obtain a written statement from the taxpayer that the original negotiable instrument was made payable to the United States Treasury (or Internal Revenue Service (IRS)) and sent to IRS.

    2. Input Transaction Code (TC) 470 on the impacted module(s).

    3. Prepare a brief narrative report.

    4. Photocopy both sides of the original negotiable instrument made payable to someone other than the IRS and retain a copy of the evidence in the case file with the report.

      Note:

      Retain the original negotiable instrument in your case file unless TIGTA instructs you to send it to them by mail.

    5. Obtain a photocopy of the customer’s receipt if the stolen or altered remittance was a money order, cashier check, etc.

5.1.2.2.6.1  (07-13-2010)
Report to TIGTA

  1. Send the report (and attachment(s)) to Treasury Inspector General for Tax Administration (TIGTA) and TIGTA will conduct an investigation and report the results of the investigation.

  2. Make a report to the TIGTA hotline by one of the following methods:

    • Online — complete and submit the online form on TIGTA's web page at: http://www.treas.gov/tigta/contact_report.shtml

    • E-mail — send a secure E-mail message to the TIGTA Hotline Complaints Unit at: Complaints@tigta.treas.gov

    • Telephone — 1-800-366-4484

    • Fax — 202-927-7018

    • Mail — Treasury Inspector General for Tax Administration
      Hotline
      P.O. Box 589
      Ben Franklin Station
      Washington, DC 20044-0589

5.1.2.2.6.2  (09-26-2014)
Report to the RSC

  1. Send a copy of the report (and attachments) to the Remittance Security Coordinator (RSC). The RSC will control the case and protect the taxpayer from incorrect notices while TIGTA conducts it's investigation. The RSC will ensure that incorrect penalties and/or interest are abated.

  2. Obtain the name and telephone number of the RSC contact by checking the Submission Processing Remittance Security website at: http://win.web.irs.gov/SP/Security_Info_&_Internal_Control/Remittance_Security_Coordinators.htm.

5.1.2.3  (08-15-2008)
Timeliness of Remittances

  1. Remittances are due at the Submission Processing Center within 3 business days from the date the IRS received the funds. The timeliness criteria are based on Title 31, U.S. Code § 3302. In general, any employee receiving a remittance from a taxpayer must transmit the remittance the same day as received or as soon as possible the next business day to ensure receipt in the designated Submission Processing Center within 48 hours of receipt from the taxpayer. One additional day is allowed for cash conversion.

  2. An overnight traceable method of shipping remittances to Submission Processing is required to ensure the earliest deposit to the Treasury.

  3. The Service recognizes that an overnight traceable method is not always available to revenue officers in the field or outside of the continental United States, so remittances may need to be transmitted using regular mail or overseas mail, as applicable. In those instances additional mailing time is allowed.

    1. Five business days are allowed (from the date the revenue officer collected the funds) for transmitting remittances to the designated Submission Processing Center via regular mail.

    2. Seven business days are allowed (from the date the revenue officer collected the funds) for transmitting remittances to the designated Submission Processing Center from overseas (all locations outside the continental United States, including Alaska and Hawaii).

  4. Annotate the Form 795/795A, Daily Report of Collection Activity, to alert the remittance processor at the Submission Processing Center to apply the extended timeliness criteria, as displayed in the following table.

    1. EXTENDED PROCESSING TIME ANNOTATIONS
      Criteria Annotation
      5-day NOT SENT VIA OVERNIGHT MAIL
      7-day SENT VIA OVERSEAS MAIL
  5. Follow the procedures below to prepare and submit Form 795/795A, Daily Report of Collection Activity .

    Reminder:

    Maintain an adequate supply of overnight envelopes while on field calls to facilitate timeliness of remittances.

5.1.2.4  (09-26-2014)
Daily Report of Collection Activity - Form 795/795A

  1. A Form 795/795A, Daily Report of Collection Activity, is prepared each day that payments and/or returns are secured, or as soon as possible the next business day.

  2. You must make alternate arrangements for processing remittances and/or returns received by mail while you are on leave or otherwise away from the office.

  3. Local management is responsible and must ensure a procedure exists to handle the timely processing of remittances and returns for those employees who are away from the office. Local management may designate an employee to handle the processing of remittances and returns for those employees who are away from the office; for example designating a Revenue Officer of the Day.

    Note:

    If, during a revenue officer's absence, a remittance was not processed timely per local management's established procedure, the employee transmitting the remittance(s) may annotate “IRM 5.1.2.4(3)” on the Form 795/795A or posting voucher when submitting such remittance(s). When this occurs a Form 5919, Teller’s Error Advice, may be issued despite the annotation on the posting voucher or Form 795/795A. The notation can help in routing and resolving the Form 5919.

  4. To ensure segregation of duties, when practical, two employees must be involved in remittance processing. The two employees will normally be a poster and a mailer. Ensure the poster, the employee who prepares the payment posting vouchers and Form 795/795A, is not the same employee as the mailer, who prepares and mails the transmittal package, including preparing the Form 3210, Document Transmittal, when there are multiple envelopes in the transmittal package.

    Exception:

    If only one employee is in the office on a day payments are received then process according to IRM 5.1.2.4.3(4)b. The poster and the mailer may then be the same employee.

    Reminder:

    Form 3210 must be completed and two copies included when sending more than one sealed envelope to Submission Processing.

  5. If the poster is the same as the mailer, then the GM or management designee must review the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A) and the transmittal package for accuracy and completeness then initial and date the top of the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A).

    Exception:

    If the GM or management designee is not co-located in the same POD, the GM or management designee review is not required.

  6. The Integrated Collection System (ICS) records time and activity data and produces electronically generated reports. ICS electronically gathers much of the information required to complete these reports and the rest of the information is input by the user through the ICS workstation.

  7. The two ICS generated reports are (both are printable):

    • Form 795A (CG), Remittance and Return Report — use to transmit remittances and returns.

    • Form 795B (CG), Closure/Document Transmittal — use to transmit closed cases.

5.1.2.4.1  (06-20-2013)
Paper Form 795

  1. Use paper Form 795 only when unable to print Form 795A (CG).

    Example:

    You are working out of the office and will not be able to connect to the local area network (LAN) on the next business day so you must complete a paper Form 795.

    1. Print your name, Standard Employee Identification Number (SEID), address, contact telephone, and all other entries accurately and legibly in ink.

    2. Submit the paper Form 795 at the close of business each day or as soon as possible the next business day.

  2. Update the cases that were listed on the paper Form 795 on ICS as soon as you have access to the LAN.

    Note:

    Failure to update the cases will generate an error on the Submission Processing Center unconfirmed transactions report and the Submission Processing Center will issue a Form 5919, Teller’s Error Advice.

5.1.2.4.2  (06-20-2013)
Supplemental Form 795

  1. Prepare a supplemental Form 795/795A if submission of returns and remittances is delayed for any reason, including discovered remittances.

  2. Enter a brief explanation for the delay on both the remittance processor's and manager's copies of Form 795/795A:

    1. Write an explanation for the delay on the reverse of the original copy of the supplemental Form 795 if preparing a paper form.

    2. Enter an explanation into ICS if preparing Form 795A (CG), Remittance and Return Report.

      Note:

      You may input up to 30 characters under the Taxpayer's Name which allows the information to be retained with the Form 795A record on ICS. For example, RECEIVED AFTER UPS PICKUP

      .

  3. Ensure the supplemental Form 795/795A has the date the transmitted item was received.

  4. Secure your manager's initials on the supplemental Form 795/795A.

  5. Submit the supplemental Form 795/795A as soon as possible.

    Note:

    A supplemental Form 795 is considered a late remittance error. This error will be included in the Late Remittances and Trends and Patterns reports, but Form 5919, Teller’s Error Advice, will not be issued if no other errors exist with the remittance.

5.1.2.4.3  (09-26-2014)
Procedures for Preparing and Processing Form 795/795A

  1. A "poster" is the employee who prepares the payment posting vouchers and Form 795 /795A, Daily Report of Collection Activity. Revenue Officers will perform poster duties each day that payments and/or returns are secured.

    Note:

    To ensure segregation of duties, when practicable, ensure the poster, the employee who prepares the payment posting vouchers and Form 795/795A, is not the same employee as the mailer, who prepares the Form 3210, Document Transmittal, and the transmittal package.

  2. A poster will prepare and process a Form 795/795A, Daily Report of Collection Activity, each day that payments and/or returns are secured as follows:

    1. List all secured payments and returns.

    2. Prepare the appropriate posting document for all secured remittances per IRM 5.1.2.5.

    3. Enclose each completed Form 795/795A, Daily Report of Collection Activity along with the secured remittances in a sealed envelope.

      Note:

      At the discretion of the group manager, the envelope may be unsealed until mailed to Submission Processing.

  3. The poster will label the envelope with the following information:

    1. Name of the poster.

    2. Date of Form 795/795A.

    3. The poster's SEID number.

    4. Total dollar amount of remittances.

    5. Annotate the envelope with the term LARGE when Form 795/795A includes a single remittance or aggregate remittance(s) of $100,000 or more, to ensure the earliest deposit to the Treasury per IRM 5.1.2.6.1, Large Dollar Remittances.

  4. Submit the envelope as follows:

    IF THEN send the sealed envelope to the
    a. Working in a multiple revenue officer post of duty (POD), Employee designated to perform the mailing duties in IRM 5.1.2.4.4
    b. Working in a single revenue officer POD, Submission Processing via overnight traceable mail with carrier packaging
    c. Working away from the POD on extended field calls, Submission Processing via overnight traceable mail with carrier packaging provided by the POD
    d. Unable to send via overnight traceable mail, Submission Processing via regular mail or overseas mail
    Overnight traceable carrier labels can be generated from the laptop computer using the UPS internet site at:
    http://www.ups.com/content/us/en/shipping/index.html?WT.svl=PriNav.
    Further information regarding shipping can be found on the intranet at: http://publish.no.irs.gov/mailtran/ChSmPKG.html.
  5. Retain a control copy of the Form 795/795A until the receipted copy is returned from Submission Processing.

  6. Store the receipted copy of the Form 795/795A in accordance with the minimum protection standards found in IRM 10.2.13.4.3, Storage.

  7. Retain the copies in accordance with item number 31, Records Control Schedule (RCS) 28, Tax Administration - Collection, inDocument 12990 , IRS Records Control Schedules (RCS). As of the published date of this IRM 5.1.2, the Records Control Schedule requires retaining the current year plus two years.

5.1.2.4.4  (01-24-2012)
Procedures for Mailing Form 795/795A to Submission Processing

  1. The "mailer" is the designated clerical contact or employee designated to prepare and mail the transmittal packages per the procedures that follow.

    Note:

    To ensure segregation of duties, when practicable, ensure the poster, the employee who prepares the payment posting vouchers and Form 795/795A is not the same employee as the mailer, who prepares and mails the transmittal package per the procedures that follow.

  2. The mailer is responsible for submitting the completed envelopes to Submission Processing as follows:

    1. Bundle the sealed envelopes, containing the Form 795/795A and remittances, into a single package for overnight mail to Submission Processing.

      Reminder:

      Form 3210 must be completed and two copies included when sending more than one sealed envelope to Submission Processing.

    2. Prepare the Form 3210, Document Transmittal, with the name of the poster, their SEID number and date from each sealed envelope.

    3. Send the prepared package (including a copy of the Form 3210) to Submission Processing via overnight mail.

    4. Retain a control copy of the overnight mail transmittal until the acknowledged copy of the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A) is returned from Submission Processing.

    5. Retain the acknowledged copy of the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A)

    6. Reconcile all control copies of document transmittals (Form 3210, or in the case of one envelope, Form 795/795A) and the acknowledgements on a bi-weekly basis. Make sure that Submission Processing returned the acknowledgements and that all listed items have a check mark.

    7. Follow up with the destination site if document transmittals (Form 3210, or in the case of one envelope, Form 795/795A) are not returned within 14 days per procedures in IRM 5.1.2.4.5.1, Form 3210 and Form 795 Follow Up.

      Note:

      All pages of the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A) must be returned. If documental transmittal pages are lost or missing, this is a loss of personally identifiable information (PII) and must be reported to CSIRC.

  3. Double-wrap the package (i.e., multiple sealed envelopes or just one sealed envelope) in an opaque paper envelope or box.

    Note:

    The double wrapping of the package is done to ensure that if the outside envelope or box is damaged or destroyed, the internal package containing the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A) and envelopes may be delivered intact, thus protecting SBU and PII information.

  4. Write the following on the inside envelope or box:

    1. Name of the person who is authorized to open the package: (i.e., the Submission Processing Operations Manager with responsibility for deposits).

    2. Address of the receiving office. The location of the receiving office is determined by state alignment.

      To determine the correct receiving office for a specific state refer to the Submission Processing site link titled "Collection State Alignment" at:
      http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Collection.htm

      After determining the correct receiving office, to determine the receiving office's address, including the stop number and the person authorized to open the package, refer to the Submission Processing site link titled "SP Center Field Office Payment Processing Key Contacts and Liaisons" at:
      http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm

    3. Return address of the office mailing the remittance package.

    4. "Limited Official Use" is required to be clearly marked or stamped on the front and back of the inside envelope or box

      Note:

      If control of Form 795/795A is centralized, include the specific address where they are maintained, on the package.

    5. When the envelope or box contains a single remittance of $100,000 or more or the aggregate total of remittances is $100,000 or more (i.e., whether a single remittance or multiple remittances) annotate LARGE on the envelope or box to ensure the earliest deposit to the Treasury.

  5. Write the following on the outside envelope or box:

    1. Address of the receiving office. The address should include only "IRS" ( or Internal Revenue Service), the stop number, and address. The location of the receiving office is determined by state alignment.

      To determine the correct receiving office for a specific state refer to the Submission Processing site link titled "Collection State Alignment" at:
      http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Collection.htm

      After determining the correct receiving office, to determine the receiving office's address, including the stop number refer to the Submission Processing site link titled "SP Center Field Office Payment Processing Key Contacts and Liaisons" at:
      http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm

      Caution:

      Do not include the name or title of the intended recipient (person) on the outside envelope or box. Do not write "cashier" , "teller" , or "remittance" on the outside envelope or box as this may serve as an alert to a potential thief.

    2. Return address of the office mailing the remittance package

5.1.2.4.5  (01-24-2012)
Remittance/Document Transmittal Controls (Form 3210 and Form 795/795A)

  1. Establish and monitor controls to ensure delivery and acknowledgment of the remittance package.

  2. The controls must enable the identification of the amounts of taxpayer receipts by taxpayer identification number (TIN), correlated to the package tracer information.

    Example:

    If the transit provider informs IRS that package number 12345-67-89 was destroyed, controls are needed to enable proper identification of the impacted taxpayer(s) if it is necessary to grant relief.

  3. The primary control is the document transmittal, Form 3210. However, when sending only one Form 795/795A, Form 3210 is not required; therefore, when sending only one Form 795/795A, the Form 795/795A is the primary control for the contents of that sealed envelope.

    Reminder:

    Form 3210 must be completed and two copies included when sending more than one sealed envelope to Submission Processing. Each Form 795/795A is required to be in a sealed envelope.

  4. In the event of loss, if the control was Form 3210, the employee responsible for following up must gather a copy of each Form 795/795A that was included in the package from each revenue officer.

5.1.2.4.5.1  (09-26-2014)
Form 3210 and Form 795/795A Follow Up

  1. Follow up on a timely basis with the destination Submission Processing Center regarding delayed acknowledgment of a deposit package.

    Note:

    Submission processing will acknowledge the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A.) The remittance processor in the teller unit is required to return an initialed copy of Form 795/795A, Daily Report of Collection Activity, to the originating employee as acknowledgment of receipt for the remittances, returns, and posting documents. The remittance processor must acknowledge receipt of each remittance with a distinctive check mark on the transmittal and return an acknowledgement copy of the transmittal to the originator at the specific address listed on the transmittal within 5 workdays.

  2. Establish a reminder to check if:

    1. an acknowledgement copy of the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A) has been received from the Submission Processing Teller Unit, and

    2. all the remittances have been acknowledged.

      Note:

      The reminder may be established on a paper calendar or an electronic calendar such as an Outlook calendar.

  3. Reconcile all document transmittals (Form 3210, or in the case of one envelope, Form 795/795A) and the related acknowledgements on a bi-weekly basis (at a minimum) to ensure that all remittances have been received by the Submission Processing Teller Unit.

  4. A follow up action in IRM 5.1.2.4.5.1(5) is required when:

    1. an acknowledgement copy of the document transmittal (Form 3210, or in the case of one envelope, Form 795/795A) is not received within 14 days of mailing, or

      Exception:

      If the acknowledgement copy of all Form 795/795As controlled by a Form 3210 transmittal are received, and the acknowledgement copy of the Form 3210 is not received, and all payments on the Form 795/795A have been checked off by Submission Processing, notate the control copy of the unacknowledged Form 3210 that all Form 795/795As have been returned and all payments were noted as received. Retain the noted control copy of the Form 3210 with the file copies of previously acknowledged Form 3210s. When this is done no additional follow-up is necessary.

    2. the acknowledgement copy of a Form 3210 document transmittal indicates a Form 795/795A was not acknowledged, or

      Exception:

      If all unacknowledged payments (no check mark) on the Form 795/795A are verified as posted or pending on IDRS (or "PN" on ICS) then notate the control copy of the Form 795/795A with the unacknowledged payment(s) posting (or pending posting) date(s) on IDRS. Retain a copy of the notated Form 795/795A with the acknowledgement copy of the Form 3210. Retain both with the file copies of previously acknowledged Form 3210s. When this is done no additional follow-up is necessary.

    3. any remittance is not acknowledged (i.e., marked with a distinctive check mark on the Form 795/795A.)

      Exception:

      If the unacknowledged remittance is verified as posted or pending on IDRS (or "PN" on ICS), then notate the control copy or acknowledgement copy of the Form 795/795A with the unacknowledged payment's posting (or pending posting) date on IDRS. Retain a copy of the notated Form 795/795A with the acknowledgement copy of the Form 3210. Retain both with the file copies of previously acknowledged Form 3210s. When this is done no additional follow-up is necessary.

  5. When a follow-up action is required per IRM 5.1.2.4.5.1(4) take one of the following actions:

    • Request follow up from the campus teller unit by faxing a copy of the document transmittal (Form 3210, or in the case of one envelope, Form 795 /795A) to the Field Office Payment Processing designated liaison. The appropriate fax numbers are: Cincinnati (859) 669–3792, Ogden (801) 620–3962

    • Request follow up from the campus teller unit by mailing a copy of the document transmittal (Form 3210, or in the case of one envelope, Form 795 /795A) to the teller unit.

  6. Place the receipted copy of the document transmittal form in the file.

  7. Retain the copies in accordance with item number 31, Records Control Schedule (RCS) 28, Tax Administration - Collection, inDocument 12990, IRS Records Control Schedules (RCS). As of the published date of this IRM 5.1.2 the Records Control Schedule requires retaining the current year plus two years.

5.1.2.4.5.2  (09-26-2014)
Form 795 Loss Report

  1. Report a lost remittance package (i.e., the loss of personally identifiable information (PII)) immediately to:

    1. your manager,

    2. the Computer Security Incident Response Center (CSIRC) at 1–866–216–4809, and

    3. the Treasury Inspector General for Tax Administration (TIGTA) hotline.

    Refer to IRM 5.1.2.2.4, Personally Identifiable Information, for information about how to contact the TIGTA hotline.

  2. Describe the contents of the remittance package in the report:

    1. Number of sealed envelopes (containing Form 795/795A, remittances (i.e., checks, money orders, cashier's checks, or cash), and secured returns).

    2. Form 3210, if applicable.

    3. Overnight mail transmittal, if applicable.

5.1.2.4.6  (09-26-2014)
Responding to Form 5919

  1. Submission Processing will send Form 5919, Teller's Error Advice, electronically to your manager when a remittance processor receives one of the following:

    • Form 795/795A, Daily Report of Collection Activity, with an error(s) or submitted late.

    • Late remittance.

    • Late return.

    • Form 809, Receipt for Payment of Taxes, with an error(s) or submitted late.

      Note:

      Refer to IRM 3.8.47.7,Form 5919, Teller's Error Advice, for further information.

  2. There are procedures specific to responding to a Form 5919 involving Form 809 in IRM 5.1.2.7.6.

5.1.2.4.6.1  (07-13-2010)
Processing Form 5919

  1. The manager will forward an electronic copy of the Form 5919 to the originating employee for corrective action.

  2. Take corrective action upon receipt of Form 5919 from your manager.

    1. Prepare a supplemental Form 795/795A, Daily Report of Collection Activity, as the transmittal to return the Form 5919 to the Submission Processing Field Office Payment Processing Unit.

    2. Include copy of Form 5919 with Form 795/795A.

    3. Annotate "Response to Form 5919" on Form 795/795A to identify Form 5919 as the basis for submitting a supplemental Form 795/795A.

    4. Send the correction, together with copy of Form 5919, to the remittance processor via the supplemental Form 795/795A, generally within 15 workdays of issuance.

5.1.2.5  (09-26-2014)
Payment Documents and Posting Procedures

  1. Use suitable posting documents containing all of the information needed for deposit and input into the Integrated Collection System (ICS) whenever possible. Acceptable payment documents include, but are not limited to the following:

    • Form 3244, Payment Posting Voucher.

    • Form 809, Receipt for Payment of Taxes.

    • Turnaround notices (MF and IDRS notices to taxpayer).

    • Form 1040-ES, Estimated Tax for Individuals.

    • Correspondence.

    Note:

    Some documents may be brought up to acceptable standards by adding information and coding and editing. Integrated Collection System (ICS) users may refer to the ICS user guide for properly generating Form 3244. Submission Processing IRM 3.8.46.1 (4) , Discovered Remittances, provides instructions for manually completing Form 3244.

  2. To be acceptable for input, the posting document must identify the originator and contain:

    • Taxpayer name, last known address (including zip code), and Taxpayer Identification Number (TIN).

    • MFT and period.

    • Payment received date.

    • Payment amount(s) and transaction codes(s).

      Reminder:

      Do not use pen and ink changes on ICS or template of the payment processing vouchers. Pen and ink changes are never acceptable.

  3. For the payment received date, use the date the payment is actually received by the IRS. Prior to submitting remittances for transmittal to Submission Processing, check that the transaction date on the Form 3244, Payment Posting Voucher matches the received date of the remittance.

    Note:

    If some other designated official/agency initially receives the remittance, e.g., the U.S. Attorney in foreclosure actions, use the date of receipt by that agency and enter a brief statement in the remarks section of the posting document to explain why the earlier date was used.

    Exception:

    A check dated in the future is referred to as a post-dated check. If a check is dated in the future follow the procedures in IRM 5.1.2.6.3.5, Post-Dated Checks.

  4. If the received date is unknown and there is no IRS received date (stamped) or handwritten received date on the remittance or documents received with the remittance, determine the received date using the following priority list:

    1. Latest postmark or private delivery service date on the envelope.

    2. Date the document/correspondence was prepared or signed.

      Exception:

      If the only available date is from a copy of a previously filed return, do not use the copied signature's date. Continue to (c) or (d) below.

    3. Julian Date of the Document Locator Number (DLN) minus 10 days.

      Note:

      The Julian Date is the 6-8 digits of a DLN. For example, in the DLN 28210-105-60025-4, the Julian Date is 105. Refer to DLN Composition in Document 6209, IRS Processing Codes and Information, for additional information.

    4. Today’s date minus 10 days.

  5. If you have closed out your Form 795/795A for the day and discover you have made an error in the received date, request a change in payment dates on a Form 2424, Account Adjustment Voucher. Ensure you explain the reason for the change in date on the "Explanation" line. See IRM 5.1.15.15(5), Credit Transfers, for further information.

  6. Prepare Form 3244 to process a payment if:

    1. Form 809 receipt is either not required or can not be used as a posting voucher, or

    2. Other suitable posting document is not available.

  7. Prepare payment documents (other than receipts) in original only.

  8. Prepare Form 3244 (or other posting document) carefully and correctly to avoid posting delays. Only one debit transaction and two credit transactions are allowed per posting voucher. Additionally the dollar amounts must be in balance to the credit side.

    Note:

    Submission Processing identified problem areas including the lack of designated payment codes, lack of employee numbers to identify the preparer, incorrect name controls, and incorrect TINS.

  9. Pay close attention to the amount of money collected and ensure the posting voucher reflects the actual amount of money collected.

    Example:

    If a balance of $1,200 is due on a notice, and the taxpayer remits $600, ensure the amount collected is accurately reflected as $600. If using a pre-printed payment posting voucher, fill in the actual amount collected.

  10. Payments remitted with a posting voucher for the wrong taxpayer or incorrect money amount will be issued Form 5919, "Teller's Error Advice" . Crediting a payment to a wrong taxpayer may cause an erroneous refund.

  11. Refer to IRM 5.1.2.8, Designated Payments, for the proper use of Designated Payment Codes with certain transaction codes.

5.1.2.5.1  (09-26-2014)
Mutual Collection Assistance Request (MCAR) Payments

  1. Field Collection employees receive payments from five mutual collection income tax treaty partners. These partners are Canada, Denmark, France, The Netherlands, and Sweden. The corresponding treaties have a collection assistance provision that requires the IRS to credit the payments as of the date the partner received the payment (partner received date) rather than the date the IRS receives the payment (IRS received date.) On the posting voucher, use the partner received date rather than the IRS received date for the date to credit the payment.

  2. Additionally, when processing these payments notate the payment voucher with the IRS received date as follows: "MCAR payment IRS received date: MM/DD/YYYY." Submission Processing will use the IRS received date as noted to determine if the requirements of IRM 5.1.2.3, Timeliness of Remittances have been met. In the absence of the notation, Submission Processing will use the received date of the posting voucher to determine if the requirements of IRM 5.1.2.3 , Timeliness of Remittances have been met. Therefore in the absence of the notation Submission Processing may issue a Form 5919, Teller’s Error Advice, based on the received date on the posting voucher.

5.1.2.5.2  (09-26-2014)
Transaction Codes

  1. A transaction code is a three digit numeric code used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer's account on the Master File.

  2. Use Transaction Code (TC) 670 when preparing a payment posting document for:

    1. All assessed amounts, all accrued failure to pay (FTP) penalties, and accrued interest, except in those instances described in (3) below.

    2. All federal tax deposits (FTDs) secured by an employee in an area office. These FTDs are not routed through the FTD system and are, therefore, treated as subsequent payments.

      Note:

      A taxpayer attempting to make an FTD payment to an employee in an area office should be advised to make the payment through the Electronic Federal Tax Payment System (EFTPS). There is a 10% avoidance penalty for not using EFTPS when required. If the taxpayer insists on making the payment to an employee in an area office advise the taxpayer the payment will be processed as a regular payment. Process the payment as a subsequent payment.

    3. All BMF estimated payments (ES) for the Form 1120 series of returns.

    4. Payment of lien filing fees. If the lien fees have not yet been assessed, use TC 360 simultaneously with TC 670.

    5. Payment received resulting from service center actions e.g., a substitute for return (SFR) or an additional tax assessment.

    Reminder:

    Per IRM 5.1.2.8.1(3), Field Collection is required to use Designated Payment Codes (DPC) for certain transaction codes.

  3. Use the appropriate transaction code in the following special cases:

    TRANSACTION CODES
    Special Cases
    Case Type of Payment Transaction Code Additional Transaction Code
    1 IMF module — payment designated as an estimated payment (ES) TC 430  
    2 IMF or BMF module — with a restricted interest indicator (TC 340 or TC 341) TC 680 — to post the amount of accrued yet unassessed interest, which will generate CP 86/186 for a manual update of the restricted interest charge.  
    3 IMF or BMF module — with a restricted FTP penalty indicator (TC 270 or TC 271) TC 670 — to post the remittance amount TC 270 — to post the amount of accrued penalty
    4 IMF, BMF, or civil penalty module — payment of sale and/or administrative costs TC 694

    Note:

    Use TC 360 to post the amount of the collection costs simultaneously with TC 694 if the collection costs have not yet been assessed.

    TC 670 — to post any funds received in excess of the collection costs
    5 IMF, BMF, or civil penalty module — pre-assessed payment secured as an advanced payment of a deficiency TC 640 (Advance Payment of Determined Deficiency or Underreporter Proposal)
    Take the following action to create a module to post the pre-assessed payment to a civil penalty module:
    • Establish a name line .

    • See IRM 4.4.11.7, Civil Penalty Name Lines.

     
    6 IMF, BMF, or civil penalty module — payment designated for application to interest or penalty TC 680 — to post the amount of designated interest TC 690 — to post the amount of designated penalty
    7 IMF, BMF, and civil penalty module — payment secured on a 6020(b) return which is not yet processed TC 640 — to post the remittance amount  
    8 IMF, BMF, or civil penalty module — payment received:
    • prior to Bal Due issuance

    • before the posting of TC 671 (Subsequent Payment Check Dishonored) (i.e., a pending TC 671 is reflected on IDRS)

    TC 670 TC 570 ("Additional Liability Pending " )

    Note:

    Take the following action to ensure that the credit will not be refunded as an overpayment:

    • Request input of TC 570 as the secondary TC.

    9 BMF or NMF module — payment designated as an estimated payment (ES) for :
    • Estate Taxes — Form 706

    • Gift Taxes — Form 709

    TC 660  
    10 NMF module — Payments designated for application to interest or penalty TC 680 — to post the amount of designated interest TC 270 — for any unassessed amounts of FTP penalty included in the payment
    11 NMF module — payment of accrued interest TC 670 — to post the remittance amount TC 340 — for the amount of accrued interest
    12 NMF module — payment of accrued FTP penalty TC 670 — to post the remittance amount TC 270 — for the amount of accrued FTP penalty
    13 NMF module — full payment TC 670 — to post the remittance amount or other applicable TC per above
    Take the following action in addition to posting the payment:
    • request input of command code STAUP 12,

    • use a separate input document from the one used to input the transaction codes.

    Note:

    Use TC 670 to apply the excess to the earliest period if the NMF payment exceeds the total of assessed tax, interest, and penalty for all periods.

    Other TC, if applicable, per above

5.1.2.5.3  (09-26-2014)
Unassigned Account or Module

  1. When accepting a tax payment for an account or module that is not on ICS use the Form 3244 in the ICS templates.

    Note:

    If the payment was routed or mailed to the Field Collection address incorrectly, the address the sender should have send the payment to can be identified, and future payments may be received, then, after processing the payment, consider sending Letter 5152, Misdirected Payment , to the sender. Sending the Letter 5152 may prevent future payments going to the incorrect address.

  2. When preparing the Form 3244 template select the "Enter Date Grid" button in the template process. This will allow you to manually enter all the applicable data on the form.

    Note:

    If a payment is received from an unidentified taxpayer, add the payment on Form 795/795A on the day of receipt. Note the payment as "UNIDENTIFIED." The payment will be researched as well as processed at the destination SP center.

5.1.2.5.4  (09-26-2014)
Manual Federal Tax Lien Release

  1. There are certain conditions when a manual lien release is necessary after a liability is fully satisfied. Refer to paragraph (5) in IRM IRM 5.12.3.3.1, Liability is Satisfied-IRC § 6325(a)(1), for these conditions.

  2. To request a timely manual lien release, contact the Centralized Lien Operation (CLO). The CLO contacts are posted on the IRWeb at: http://serp.enterprise.irs.gov/databases/who-where.dr/als.dr/case-processing-lien-units.htm.

    Note:

    An internal use only telephone number is provided along with the contact information on the CLO web site. Do not give this number to a taxpayer. Ensure all E-mail communications regarding liens are sent via secure E-mail.

  3. Request the CLO contact prepare and process the manual lien release after you have posted the payment. See IRM 5.1.2.5.3.1 for specific posting procedures.

    Note:

    Employees of functions with access to the Automated Lien System (ALS) may input lien release requests in the situations described in IRM 5.12.3.2.1, Liability is Satisfied—IRC § 6325(a)(1).

5.1.2.5.4.1  (09-26-2014)
Manual Lien Release Consideration - Timely Posting of Payments

  1. Payments must be posted timely in order to ensure lien releases are systemically issued in a timely manner. You must post the remittances on the day received.

  2. Determine if the payment is sufficient to cover the tax liability of the tax period specified on the payment. See IRM 5.1.2.8, Designated Payments, for procedures to follow if the payment is voluntary and the taxpayer designates how it is to be applied.

  3. Ensure interest and penalty calculations are computed as of the day of posting. This is particularly important for split payments.

    1. Provide the exact amount to post to each module on the posting document.

    2. Ensure that full payment also includes all appropriate accruals of penalty and interest since the date of any restricted assessments if there is restricted penalty or interest.

  4. Perform additional research and resolve any outstanding issues on the account, including determining if there are any freeze codes that will delay credit posting. If a condition exists that will delay posting, request a manual release of the notice of lien.

  5. Determine whether the taxpayer has outstanding balances in other tax periods.

  6. If a payment was received based on a levy, and all balances due (Bal Due) on the levy are fully paid, see IRM 5.11.2.2, Releasing Levies, to determine appropriate action.

  7. Apply available credits created by involuntary payments or by undesignated voluntary payments to satisfy the outstanding balances in other tax periods in the order that best serves the interests of the government, considering the Collection Statute Expiration Date (CSED) for all outstanding liabilities. This will generally require application to the oldest tax, oldest penalty, and oldest interest, in that order until fully used. See IRM 5.16.1.2.2.1(4).

    Note:

    This order of payment application is based on Rev. Proc. 2002-26, which provides the Service's position regarding payment application by the Service of a partial payment of tax, penalty, and interest for one or more taxable periods. This can be viewed on page 11 of the IRB 2002-15 at
    http://core.publish.no.irs.gov/irb/pdf/wb200215.pdf .

  8. Do not apply a payment to an assessment for which the collection statute expiration date (CSED) has expired (i.e., when IDRS includes a Bal Due(s) with an expired CSED), unless permission is provided by the taxpayer or provided in the IRM. For example, the IRM allows for applying payments to assessments for which the CSED has expired without the permission of the taxpayer when proceeds are received as a result of a levy/seizure which was served prior to the CSED. IRM references include but are not limited to IRM 5.11.2, Serving Levies, Releasing Levies and Returning Property, IRM 5.11.5, Notice of Levy - Levy on Wages, Salary, and Other Income, and IRM 5.10.4, Seizure and Sale - Actions Prior to Sale. Also see IRM 5.16.1.2.2.1, Imminent Statute Expiration and IRM 5.16.1.2.2.5, Report of Statute Expiration, regarding reporting accounts uncollectible when CSEDs expire.

  9. Check for multiple assessments and CSEDs:

    1. Determine if a situation exists where a release of lien needs to be issued because the assessment for which the notice of lien was filed is fully paid but there remains a Bal Due on the tax period based on a later assessment not on the notice of lien.

    2. Ensure penalty and interest based on the assessment shown on the notice of lien is fully paid prior to requesting releases in these situations.

  10. Refer to paragraph (5) in IRM 5.12.3.3.1, Liability is Satisfied—IRC § 6325(a)(1), for conditions requiring a manual lien release. Refer to IRM 5.1.2.5.3 above for additional information.

5.1.2.5.5  (09-26-2014)
Inactive Account

  1. An inactive account is an account that is currently not collectible (CNC) or is not on the Master File, i.e. NMF. Follow these procedures to process a payment on an inactive account.

    1. Forward any payment received for an account previously reported currently not collectible (CNC) by TC 530 (i.e., "53'd" ) or NMF account for input on Form 795/795A, Daily Report of Collection Activity.

    2. Annotate the posting document as shown in the table.

      Type Annotate Posting Document
      • CNC
      1. Payment pertains to a "53'd" module

      2. "53'd account"

      3. "Not on IDRS" if a "53'd" account is not on IDRS

      • NMF Not on IDRS

5.1.2.5.6  (09-26-2014)
Application of Proceeds in Certain Situations

  1. There are certain situations where you may receive funds that are not directly from a taxpayer or another source. In addition, certain types of accounts may require special payment application or types of processing. These situations include:

    • Levies

    • Offer in Compromise

    • State Court Ordered Restitution

    • Federal Court Ordered Restitution

    • Restitution-Based Assessments

5.1.2.5.6.1  (09-26-2014)
Application of Proceeds from a Levy

  1. If the funds were the result of a levy and the levy has now been satisfied, a levy release must be prepared and issued to the applicable third party. See IRM 5.11.2.5, Disposing of Surplus Proceeds.

  2. Also see IRM 5.10.6.1, Application of Proceeds of Levy and IRM 5.10.7.2 , Income from Acquired Property.

5.1.2.5.6.2  (09-26-2014)
Processing Offer in Compromise (OIC) Receipts

  1. Field Collection (FC) (RO) employees should never process payments related to an offer. Ship all offers, secured by a FC (RO) employee to the appropriate Centralized Offer in Compromise (COIC) site within 24 hours of receipt, which should include a completed Form 656, a completed Form 657, and payments submitted with the offer (e.g., partial payment required by IRC § 7122(c)(1)). See IRM 5.8.2, Centralized Offer in Compromise Initial Processing and Processability, for further information.

5.1.2.5.6.3  (09-26-2014)
Processing State Court Ordered Restitution Receipts

  1. In connection with prosecutions for identity theft, refund schemes and tax evasion, state courts sometimes order defendants to pay restitution to the Internal Revenue Service.

  2. 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.

  3. The IRS has communicated to the states the proper address to send restitution payments, however, some payments may be received by Field Collection employees.

  4. State court ordered restitution payments made to the Internal Revenue Service (IRS), should be mailed to the address below.
    The OUTSIDE envelope must be addressed as follows:
    IRS-RACS
    Attn: Mail Stop 6261, Special Services Team
    333 W Pershing Ave
    Kansas City MO 64108

    The INSIDE envelope should clearly indicate “state restitution.” This will ensure it is properly directed to the correct group for application.

    IRS-RACS
    Attn: Mail Stop 6261, State Restitution/Special Services Team
    333 W Pershing Ave
    Kansas City MO 64108

  5. A Field Collection employee receiving a state ordered restitution payment will transmit the payment using Form 3210, Document Transmittal, through overnight traceable method, to the address listed above. If necessary, Collection personnel may refer questions to the Kansas City group responsible for application of these payments via the secure mailbox at *W&I Criminal Restitution.

  6. Additional information regarding criminal case processing may be found in IRM 5.1.5, Balancing Civil and Criminal Cases.

5.1.2.5.6.4  (09-26-2014)
Processing Federal Court Ordered Restitution Receipts

  1. In connection with prosecutions for identity theft, refund schemes and tax evasion, federal courts sometimes order defendants to pay restitution to the Internal Revenue Service.

  2. 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.

  3. The Department of Justice and the Federal Courts transmit funds resulting from these types of cases to the IRS. These payments are coordinated by the Kansas City Submission Processing Center (KCSPC), however some payments may be received by Field Collection employees.

  4. In compliance with Submission Processing guidance, per IRM 3.8.45.6.26Department of Justice/Criminal Restitution Program Payments (KCSPC Only), a Field Collection employee receiving a court ordered restitution payment will transmit the payment using Form 3210, Document Transmittal, through overnight traceable method to the following address:

    Internal Revenue Service
    ATTN: RACS, Stop 6261
    333 West Pershing Rd
    Kansas City MO 64108

    Note:

    Field Collection employees should not process or post payments received from Criminal Investigation (CI) employees. Criminal Investigation may send payments or converted cash through the Department of Justice to the Federal Court, for distribution to the IRS, or CI may send to the address above.

  5. Additional information regarding criminal case processing may be found in IRM 5.1.5, Balancing Civil and Criminal Cases.

5.1.2.5.6.5  (09-26-2014)
Processing Restitution-Based Assessment Receipts

  1. The Firearms Excise Tax Improvement Act of 2010 (“the FETI Act”), Public Law No. 111-237, amended IRC § 6201 to provide that the IRS shall assess and collect the amount of restitution ordered in a criminal case for failure to pay any tax imposed by the IRC in the same manner as if it were a tax. Prior to the enactment of this law, the amount of restitution ordered payable to the IRS in a criminal case could not be assessed as a tax. The law applies to restitution orders entered after August 16, 2010.

  2. Payments received by Field Collection employees collecting restitution-based assessments will be posted using the DPCs listed in IRM 5.1.2.8.1.4.

    Note:

    Kansas City Submission Processing Campus (KCSPC) employees may receive payments from the Clerk of the Court. KCSPC employees will use DPC 26 to post federal court ordered restitution payments for restitution orders entered after August 16, 2010. (DPC 08 is used for restitution ordered prior to August 17, 2010.)

  3. Refer questions regarding posting of payments to restitution-based assessments to Advisory.

  4. Additional information regarding criminal case processing may be found in IRM 5.1.5, Balancing Civil and Criminal Cases.

5.1.2.5.7  (09-26-2014)
Estate Tax Return Remittances

  1. Refer to IRM 5.5.7, Collecting Estate and Gift Tax Accounts for processing remittances associated with Form 706 returns.

5.1.2.6  (08-15-2008)
Forms of Remittances

  1. Certain forms of remittances require special handling. These include payments in the form of:

    • Large Dollar Remittances

    • Cash Payments

    • Payments by Check

5.1.2.6.1  (09-26-2014)
Large Dollar Remittances

  1. A large-dollar remittance requires special handling to ensure the earliest deposit to the Treasury so the government will enjoy the maximum availability of funds and earn interest at the earliest opportunity. Special handling is required for:

    • a single remittance or aggregate remittances of $100,000 or more

    • a single remittance of $1 million or more

    Note:

    "Aggregate remittances of $100,000 or more" refers to the aggregate remittances for a daily Form 795/795A.

  2. Write LARGE on the inside envelope when preparing Form 795/795A including a remittance or remittances of $100,000 or more, (i.e., whether a single remittance or multiple remittances).

    Caution:

    Never write LARGE on the outside envelope. Refer to IRM 5.1.2.4.4 for procedures on preparing envelopes for mailing to Submission Processing.

  3. Obtain the liaison's telephone number or E-mail address provided in the "Phone" column. Alert the liaison that you will be sending a large remittance of $100,000 or more from [name of state] and provide the tracking number for the overnight package containing the remittance(s).

  4. Locate the large-dollar remittances mail stop on the Submission Processing Field Office Payment Processing page website at:http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm. The large-dollar remittances mail stops are listed in the "Designated Addresses for Field Office Collected Remittances Only" column.

  5. Send the envelope containing a remittance(s) of $100,000 or more to the large-dollar remittances mail stop, if applicable.

5.1.2.6.1.1  (01-24-2012)
Remittance Over $1M

  1. The following additional actions are required upon receipt of a single remittance of $1 million or more.

    1. Locate the designated remittance liaison on the Submission Processing Field Office Payment Processing page website at:http://win.web.irs.gov/SP/Programs_Information/Standard_Proce_Webpages/Field_Office_Pymt_Proc.htm. Obtain the liaison's E-mail address provided in the "Phone" column.

    2. Alert the liaison that you will be sending a single remittance of $1 million or more. E-mail the designated liaison upon receipt of a single remittance of $1 million or more and provide the tracking number for the overnight package containing the remittance. Contact the acting designated liaison (or their manager) if the designated liaison is unavailable when you call.

5.1.2.6.2  (06-20-2013)
Cash Payments

  1. Ensure that the money you accept is not counterfeit. Be aware of the techniques for detecting counterfeit money. For further information, obtain literature from the Secret Service field office or online.

    Note:

    Management can request the Secret Service field office to provide a lecture to a group of employees who receive cash payments, however, management must not request the Secret Service to instruct personnel on an individual basis.

  2. Issue Form 809, Receipt for Payment of Taxes, in every instance when cash is received per IRM 5.1.2.7.5.

  3. Convert a cash payment:

    1. to a check/bank draft or money order within 24 hours of receipt from the taxpayer before sending for processing.

    2. by the close of the business day on which it was collected, or as soon as possible on the next business day, to minimize the risk of loss and to ensure employee safety.

    Note:

    Use GovTrip to apply for reimbursement of cash conversion expenses.

    Caution:

    Do not use personal bank accounts to convert cash received as payment on delinquent accounts.

  4. Make the check/bank draft or money order payable to United States Treasury.

  5. Identify the bank draft or money order on Part 3 of Form 809 and record the following in the block provided:

    1. the name of the issuing financial institution or money order vendor,

    2. the serial number, and

    3. the date of conversion.

  6. Annotate Part 1 of Form 809, if applicable, that the payment relates to a Form 2209, Courtesy Investigation . See IRM 5.1.8, Courtesy Investigations.

  7. Per IRM IRM 5.1.2.7.5.1(3), prepare a separate Form 809 receipt for each tax period, type of tax, or user fee covered by the payment. Use Form 809 as the posting document to apply the payment to the Bal Due and/or return.

    Exception:

    When Form 809 is prepared for a payment with a return, the return serves as the posting document.

  8. Follow the procedures for preparing a currency transaction report shown below.

5.1.2.6.2.1  (09-26-2014)
Currency Transaction Report (CTR)

  1. The Currency Transaction Report (CTR) came into existence with the passage of the Currency and Foreign Transactions Reporting Act, better known as the Bank Secrecy Act (BSA), in 1970.

  2. Form Other Gov FINCEN FORM 104, Currency Transaction Report, is required to be filed for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000. However, the Treasury Regulations provide an exemption for filing a CTR: Treasury Regulation [31 CFR 1020.315(a)&(b)(2)] provides, in pertinent part that:

    "No bank is required to file a report ... with respect to any transaction in currency between an exempt person and such bank" and "an exempt person is" ... "a department or agency of the United States."

  3. Point out the Treasury Regulation exemption if a financial institution asks you to complete a CTR when you need to convert more than $10,000.

    Note:

    Furnish your credentials to the financial institution upon request. (The procedures apply even if you use a pseudonym.)

  4. Complete a CTR when the financial institution insists that one be completed for a cash transaction of more than $10,000 if there is no other readily available depository.

  5. Do not use your social security number to complete the form. Use the consolidated EIN ≡ ≡ ≡ ≡ ≡ when completing a CTR.

  6. Alternative cash payment arrangements may be made by Field Collection managers by following these steps:

    1. Contact the financial institution operations manager to request a blanket exemption for all revenue officers if a financial institution will not allow the exemption.

      Note:

      A revenue officer would have to present his/her commission to verify his/her identity to the financial institution if such a blanket exception was arranged.

    2. Make alternate cash conversion arrangements with another financial institution if the financial institution still does not allow the exemption.

      Note:

      Inform the revenue officers once the arrangement has been arranged.

    3. Determine whether to pursue the matter with the headquarters of the financial institution which refused to allow the exemption.

    4. Take any further appropriate action to attempt to make an arrangement with the financial institution.

5.1.2.6.2.2  (01-24-2012)
Property Appraisal and Liquidation Specialist Cash Procedures

  1. These additional procedures apply to Property Appraisal and Liquidation Specialist (PALS) employees.

    1. Use counterfeit detection pens on currency at the time it is received, when possible.

    2. Use a Standard Form 215-A (SF 215–A), Deposit Ticket per IRM 5.10.5.18(4), Securing and Depositing Sale Proceeds.

      Exception:

      Circumstances may prevent the use of SF 215–A, such as a sale held in a small rural community and access to a Treasury General Account Bank is not readily available.

  2. When access to a Treasury General Account Bank is not readily available, make arrangements to convert the cash at a local bank. See IRM 5.10.4.16, Arrangements to Convert or Deposit Cash.

5.1.2.6.3  (01-24-2012)
Check or Money Order Payments

  1. Instruct taxpayers to make a check or money order payable to: United States Treasury.

  2. Accept a check or money order made payable to any of the following "acceptable" forms of payee (or some other form of payee clearly intended to conform to any of the following):

    • US Treasury

    • U.S. Treasury

    • Department of Treasury

    • Dept. of Treasury

    • Department of the Treasury

    • Dept. of the Treasury

    • Internal Revenue Service/IRS

    IRM 3.8.44.4.2, Remittance Not Payable to United States Treasury outlines all acceptable payee names and those that require overstamping.

  3. Prepare posting documents to apply the correct portion of the payment to each Bal Due and/or return if one payment is received for several Bal Dues and/or returns.

  4. The canceled check or money order is the taxpayer's proof of payment. If a taxpayer insists on getting a receipt, issue Form 809, Receipt for Payment of Taxes. Form 809 is the ONLY official receipt. When Form 809 is issued, it serves as the posting document unless the payment is received with a return.

  5. A taxpayer that does not require a receipt may want proof that their non-cash payment has been delivered to the office. Each office may obtain a date stamp that reads "PROOF OF DELIVERY ONLY — THIS IS NOT AN OFFICIAL RECEIPT." You may stamp a photocopy of the taxpayer's check or money order with this stamp as proof of delivery.

5.1.2.6.3.1  (01-24-2012)
Overstamping or Endorsing

  1. Accept a check or money order made payable to an "unacceptable" payee (i.e., other than to one of the payees listed in (2) above) or if the payee line is left blank and overstamp the payee with the words United States Treasury.

    Note:

    Local offices should procure a United States Treasury stamp if they do not already have one. The letters should be in a font that will produce a very legible stamp impression (e.g., 16-pitch Arial font and should be in one-color, pre-inked and standard office supply size 1/2'' X 1 5/8''.)

  2. IRM 3.8.44.4.2, Remittance Not Payable to United States Treasury, outlines acceptable payee names and payee names that require overstamping.

5.1.2.6.3.1.1  (06-20-2013)
Payee is a Collection Employee

  1. If a check is made payable to a Field Collection employee, endorse the check or money order as follows:

    1. Write Pay to the order of the United States Treasury in the space provided for endorsement on the back of the check.

    2. Write your signature below the endorsement.

    3. Write Signature of Collection Employee below your signature.

5.1.2.6.3.1.2  (09-26-2014)
Payee is the Taxpayer (Levy Payment Payable to the Taxpayer)

  1. Treat a levy check made payable to the taxpayer as a seized check.

  2. Endorse the check as follows:

    1. Type or stamp this endorsement on the back of the check: This check (money order) and the proceeds thereof have been seized under authority of Title 26, United States Code, Section 6331, for application on the unpaid tax liability of (name of the taxpayer), and is herewith deposited to the credit of the Treasurer of the United States, (name of the area director), Area Director of Internal Revenue Service (Area Number).

      Note:

      Place the endorsement within the 1.5-inch area beginning at the leading edge of the check.

    2. Write your signature below the endorsement.

    3. Write Signature of Collection employee below your signature.

  3. For further information on seized checks see IRM 5.10.3.12.1, Checks and Money Orders.


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