- 1.22.4 Postage Accountability and Reporting Requirements
- 188.8.131.52 Introduction
- 184.108.40.206 Background
- 220.127.116.11 Funding and Budget Administration
- 18.104.22.168.1 Responsibilities - Chief Financial Officer (CFO)/Financial Management (FM)/Office of Financial Management Policy
- 22.214.171.124.1.1 Chief Financial Officer/Financial ManagementBeckley Finance Center (BFC)
- 126.96.36.199.1.2 Chief Financial Officer/Financial Management/Office of Financial Management Systems
- 188.8.131.52.1.3 Wage and Investment (W&I)/Strategy and Finance (S&F)
- 184.108.40.206.1.4 Wage and Investment (W&I)/Media and Publications (M&P)/Distribution Requirements Branch (DRB)
- 220.127.116.11.2 Major Cost Centers - Locations
- 18.104.22.168.3 Major Cost Centers - Point of Contact (POC) Responsibilities
- 22.214.171.124 Postage Cost Accountability Reporting Requirements for IRS Offices
- 126.96.36.199 Permit Imprint
- 188.8.131.52 Business Reply Mail (BRM)
- 184.108.40.206 USPS Express Mail
- 220.127.116.11 Credits for Spoiled Postage
- 18.104.22.168 Records Disposition
- 22.214.171.124 References
- Exhibit 1.22.4-1 Postage Purchase/Expenditure Report (Form 10580-A)
- Exhibit 1.22.4-2 Daily Transaction Record of IRS Postage (Form 13490)
- Exhibit 1.22.4-3 Postage Weekly Summary Report (Form 13491)
- Exhibit 1.22.4-4 Financial Managements Codes Handbook
Part 1. Organization, Finance, and Management
Chapter 22. Mail and Transportation Management
Section 4. Postage Accountability and Reporting Requirements
October 15, 2015
(1) This transmits revised IRM 1.22.4, Mail and Transportation Management, Postage Accountability and Reporting Requirements.
(1) IRM 126.96.36.199.1, added subsection title, responsibilities of Chief Financial Officer (CFO)/Financial Management (FM)/Office of Financial Management Policy. Office of Taxpayer Correspondence becomes part of M&P/Distribution organization
(2) IRM 188.8.131.52.1.1, added subsection title; responsibilities of Chief Financial Officer/Financial Management/Beckley Finance Center
(3) IRM 184.108.40.206.1.2, added subsection title; responsibilities of Chief Financial Officer/Financial Management/Office of Financial Management Systems
(4) IRM 220.127.116.11.1.3, added subsection title; responsibilities of Wage and Investment/Strategy and Finance
(5) IRM 18.104.22.168.1.4, added subsection title; responsibilities of Wage and Investment/Media and Publications/Distribution Requirements Branch
(6) IRM 22.214.171.124.3(3)(note), updated unique transaction identification number W-AW0071520151
(7) IRM 126.96.36.199.3(5), updated the fax number, 855-780-9044
(8) Editorial changes have been made throughout the IRM
Wage and Investment Division
This section provides guidance for the IRS personnel responsible for purchasing and managing postage procured from the United States Postal Service (USPS). It also provides guidance for mailing operations responsible for reporting postal expenses through the Integrated Financial System (IFS). This guidance addresses specific types of postage and how two IRS offices (major cost center and non-cost center) must report each postage type.
Proper postage accountability is an IRS priority and an area of focus by the General Accounting Office (GAO) and the Treasury Inspector General for Tax Administration (TIGTA). Accurate postage expenditure information is critical to identifying opportunities for cost containment and developing future postal budget options.
The USPS bills the IRS on a monthly basis via the Intra-governmental Payment and Collection (IPAC) system for one-twelfth of the yearly postage estimate. The USPS provides Wage & Investment (W&I), Media and Publications (M&P) and Strategy and Finance (S&F) a record of the Service's postage expenditures reported through the USPS Official Mail Accounting System (OMAS).
Postage expenditures must be timely and routinely identified by specific offices.
Funding for the purchase of postage resides in the W&I financial plan. Processing the funding activities resides in W&I/S&F. All restrictions related to purchasing postage must be recorded in IFS against those funds. Reconciliation of the USPS expenditure report and the transactions in IFS are a joint responsibility of the Chief Financial Officer (CFO), Financial Management (FM) and W&I/S&F.
Postage obligations and expenses will be committed and posted monthly to the appropriate code in IFS by W&I/S&F. This, along with accurate and timely reporting by IRS offices, will allow the Service to closely monitor and reconcile expenses and react to changes in expenditure patterns.
The following material group codes and general ledger accounts will be used to report postage commitments, obligations and expenses:
R604 6100.2381 - Notices
R604 6100.2382 - Tax Products
R604 6100.2385 - Administrative Mail
CFO/FM/Office of Financial Management Policy is responsible for providing overall financial guidance for postage expenses.
CFO/FM/BFC duties include:
Receiving weekly summary reports from the major cost centers
Receiving weekly transactional level reports from M&P
Receiving Form 10580-A, Postage Purchase/Expenditure Report from all IRS offices
Entering postage expenses into IFS
Notifying the point of contact (POC) at the major cost centers if weekly summary reports are submitted
Contacting the M&P POC if weekly transactional level reports are not submitted
Performing electronic match of expense information contained in IFS with USPS expenditure data
CFO/FM/Office of Financial Management Systems receives monthly USPS expenditure data that reflects actual charges recorded by the USPS and converts the data into spreadsheet format.
W&I/S&F staff duties include:
Providing accounting string and Agency Cost Code information to M&P/Distribution Requirements Branch (DRB)
Entering the monthly estimated commitment of funds by Cost Element group into the Integrated Procurement System (IPS) based on annual estimate
Providing the BFC the estimated obligation of funds using Form 2785, Requisition/Obligation Estimate Adjustment Notice
Reviewing and completing the IPAC billing document provided by the BFC to determine adequacy of funds provided
Obtaining receipt and acceptance certification from the Postal and Transport Policy section and DRB
Receiving the monthly USPS expenditure report from the Office of Financial Management Systems
Distributing the monthly USPS expenditure report to the major cost centers for reconciliation
Reconciling actual postage expenditures to the USPS expenditure reports
Following up with the reporting offices to determine proper disposition of discrepancies in transaction information
Notifying the BFC of any changes needed in IFS and providing appropriate supporting documentation from the affected reporting office
Notifying the DRB of changes needed in the USPS billing documents
Receiving notice correspondence volume and costing information from the M&P/Distribution Office of Taxpayer Correspondence (OTC)
Formulating annual postage estimates by budget object class (e.g., USPS, Transportation and Presort) in consultation with DRB
Providing the major cost centers estimates based on spending trends to formulate postal budgets
W&I/M&P/DRB has the overall leadership of the Mail Management Program and is responsible for the following duties:
Providing guidance and support to the affected stakeholders, including expense verification, adjustments and reconciliation
Signing IPAC bills indicating receipt and acceptance
Disseminating accounting string information to all IRS offices along with Agency cost codes
All procedures and reporting requirements are applicable to 14 major cost centers:
Office Location W&I/Campus/Submission Processing Centers
W&I/Accounts Management Centers
Correspondence Production Services (CPS) Sites
National Distribution Center (NDC)
The major cost centers will be responsible for compiling and transmitting a weekly summary of transactions to the BFC. This weekly summary is maintained to foster budget planning, verification and reconciliations of USPS billings.
Each cost center office will have a POC and an alternate who will account for the respective postage expense transactions, summaries and reconciliations.
Major cost center POCs maintain the F13490, Daily Transaction Record of IRS Postage, used to record daily transactions for postage expenses. The header information for the daily transaction record is derived from the Office Location/Cost Accounting Codes that includes:
Office Location Code
Date on (mm/dd/yyyy) format
Sequence; this is the particular transaction sequence of the day showing first transaction as 1, second transaction as 2 and so on
Mail classification category as it appears on the USPS postage statement
Mail type - N for notices, TP for tax packages and ADM for administrative mail
Amount of transaction
Weekly Summary Report - The week's accumulation of Daily Transaction Records are compiled and summarized on Form 13491, Postage Weekly Summary Report. The header information for the weekly report is contained in the Office Location/Cost Accounting Codes. The information includes:
Office Location Code
Week ending date (mm/dd/yyyy) format
Agency Cost Code
Mail Classification Category as it appears on the USPS postage statement
Mail type - N for notices, TP for tax packages, and ADM for administrative mail
Total transaction for each Mail classification category
Total amount of transactions for the week
The Weekly Summary Report must be prepared within three business days after the week ending date and sent to the BFC for verification and entry into the IFS. The report can either be E-mailed or faxed to the Postage Technician at:
IRS/Beckley Finance Center
Attn: Postage Technician Government Payables Unit
E-mail: *CFO BFC Postage Expense Submissions
All IRS Offices (except the major cost centers) expending postage funds are required to report postage purchases and expenses on a transactional basis. Form 10580-A, Postage Purchase/Expenditure Report, is due within three business days of purchase to the BFC for processing and entry into IFS. It may either be faxed to 855-780-9044 or submitted electronically to: email@example.com.
When submitted electronically a digital signature is required. Adobe Acrobat must have the digital signature reason code of "I attest to the accuracy and integrity of this document." Instructions for creating this digital signature reason code is available on the BFC web page at:
All IRS offices must report all types of postage purchase transactions.
When ordering Postage Stamps, the Local Point of Contact (LPOC) or designee, must mail via USPS a completed PS Form 17-G, Official Mail Stamp Requisition, to:
Stamp Distribution Office
United States Postal Service
8300 NE Underground Drive, Pillar 225
Kansas City, MO 64161-9995
Offices are limited to $500 of commercial postage stamps per order. All exceptions must be approved by the DRB in advance.
Upon receipt of the postage stamps, LPOC (or designee) must prepare and submit Form 10580-A, Postage Purchase/Expenditure Report, to the BFC within three business days. The completed Form 10580-A must be E-mailed to: firstname.lastname@example.org or faxed to 855-780-9044.
The BFC will enter the postage purchase/expenditure into the IFS.
A copy of Form 10580-A, and PS Form 17-G must be retained by the reporting office.
To refill/reset a postage meter, the initiating office must follow the refill/reset procedures as required by the postage meter manufacturer.
The Agency Cost Code must be recorded on all postal documents in the appropriate fields by the LPOC.
Upon successful completion of the postage meter refill, the initiating office must prepare and submit Form 10580-A, Postage Purchase/Expenditure Report, to the BFC. The completed Form 10580-A must be E-mailed to: email@example.com or faxed to 855-780-9044 within three business days of the postage transaction.
The BFC will enter the postage purchase/expenditure into the IFS.
A copy of Form 10580-A must be retained by the reporting office along with any USPS certified postal documents.
For locations using the National Mail contract, the Territory Point of Contact (TPOC), or the mail program office responsible for administering and monitoring the contract must follow the same procedures.
Permit Imprint mailing is an economical method of postage payment for bulk mail such as letters to tax return prepares and other mass mail outs. Minimum volume requirements are 500 pieces for First-Class Mail and 200 pieces or 50 pounds for Standard Mail.
All Permit Imprint mailings shall be coordinated through the M&P organization.
Individual field offices are not required to track and/or report BRM volumes and/or costs. The BRM postage is monitored monthly by the W&I/S&F organization.
The LPOC must report to the BFC all USPS Express Mail labels charged to the IRS Federal Agency Code (218), using Form 10580-A, Postage Purchase/Expenditure Report.
Within three business days of the transaction, the completed Form 10580-A must be E-mailed to: firstname.lastname@example.org or faxed to 855-780-9044.
A copy of Form 10580-A and the certified copy of the USPS Express Mail labels must be retained by the reporting office.
If the postage of the USPS Express Mail package is added using a postage meter, this expense will be included in the postage meter usage report.
Any office claiming credits for spoiled postage must complete PS Form 3533, Application for Refund of Fees, Products, and Withdrawal of Customer Accounts, in order to get a refund from the USPS. The completed form must accompany the spoiled stamps, meter strips, or envelopes when presented to the local Post Office that licensed the meter. Unused or spoiled stamps are considered for refund only if submitted within 60 calendar days of the postage meter date. The Post Office will issue a refund check or Postal Money Order.
The LPOC must prepare and submit Form 10580-A, Postage Purchase/Expenditure Report, with the original PS Form 3533 and the check or Postal Money Order to:
IRS/Beckley Finance Center
Attn: Postage Technician
Government Payables Unit
P.O. Box 9002
Beckley, WV 25802-9002
This documentation must be sent to the BFC within three business days of the transaction.
The BFC will credit postage refunds in IFS.
A copy of Form 10580-A and PS Form 3533 must be retained by the reporting office.
All postal refund checks or money orders submitted to DRB will be returned to the originating office.
The disposition of all postal records, consisting of Post Office forms, supporting documentation, mail control records and agency copies of penalty mail reports will be handled in accordance with IRM 1.15.49, Communication Records.
Available resources are:
IRM 1.35.5, Advances, Prepaid Expenses and Other Assets
IRM 1.15.49, Communication Records
All IRS forms identified in these instructions and procedures may be obtained electronically from the M&P intranet website at: http://publish.no.irs.gov/catlg.html
The USPS forms and publications are available through your servicing Postal Business Center, USPS National Customer Support Center, or at: USPS website.
Form 10580-A is available on Media and Publications web site at: http://core.publish.no.irs.gov/forms/internal/amc/talking_pdf/f10580-a--2014-12-00--acc.pdf and is 508 compliant.
Form 13490 is available on Media and Publications web site at: http://publish.no.irs.gov/cat12.cgi?request=CAT2&itemtyp=F&itemb=13490&items=* and is 508 compliant.
Form 13491 is available on Media and Publications web site at: http://publish.no.irs.gov/cat12.cgi?request=CAT2&itemtyp=F&itemb=13491&items=*.