- 21.4.2 Refund Trace and Limited Payability
- 18.104.22.168 Programs Scope and Objectives
- 22.214.171.124.1 Background
- 126.96.36.199.2 Authority
- 188.8.131.52.3 Responsibilities
- 184.108.40.206.4 Program Controls
- 220.127.116.11.5 Acronyms
- 18.104.22.168.6 Related Resources
- 22.214.171.124.7 Refund Trace and Limited Payability Overview
- 126.96.36.199 What is a Refund Trace?
- 188.8.131.52 Refund Trace Process
- 184.108.40.206.1 Processing and Controlling Refund Inquiries Timeliness of Actions
- 220.127.116.11.2 Non-Master File Refund Tracing
- 18.104.22.168.3 Form 8599, Request for Missing Information Regarding Refund
- 22.214.171.124 Refund Trace Actions
- 126.96.36.199.1 Form 3911, Taxpayer Statement Regarding Refund
- 188.8.131.52.2 Input Command Code (CC) CHKCL
- 184.108.40.206.3 Processing the Command Code (CC) CHKCL Trace Request
- 220.127.116.11.4 Responding to Taxpayer's Subsequent Inquiries
- 18.104.22.168.4.1 Subsequent Inquiries, with Status Codes, without Prior Forgery Determination (CSR's and Refund Inquiry Unit)
- 22.214.171.124.5 Disposition Status Codes
- 126.96.36.199.6 Refund Inquiry Unit Processing
- 188.8.131.52.7 Limited Payability (LP) Rules
- 184.108.40.206.7.1 Refund Credits/Debits TC 740/TC 841/TC 843 Bureau of the Fiscal Service (BFS) (formerly Financial Management Service (FMS)) Reason/Cancellation Codes
- 220.127.116.11.7.2 Limited Payability Computer Paragraph (CP) 32/237
- 18.104.22.168.8 Responding to Inquiries about Expired Refund Checks
- 22.214.171.124.9 Processing Limited Payability (LP) Cancellations on Checks Dated after 9/30/1989
- 126.96.36.199.10 Processing Limited Payability (LP) Responses
- 188.8.131.52.11 Check Cashed/Limited Payability (Possible Forgery)
- 184.108.40.206.12 Bureau of the Fiscal Service (BFS) (formerly Financial Management Service (FMS)) Claims
- 220.127.116.11.12.1 Undeliverable Form FMS 1133
- 18.104.22.168.13 Bureau of the Fiscal Service (BFS) (formerly Financial Management Service (FMS)) Claims Disposition Notice (CDN)
- 22.214.171.124.14 Account 6565 Processing for Refund Inquiry Function
- 126.96.36.199.15 Miscellaneous Refund Trace Issues
- 188.8.131.52.15.1 Holder in Due Course
- 184.108.40.206.15.2 Request for Administrative Photocopy
- 220.127.116.11.15.3 Secret Service and Check Forgery Insurance Fund (CFIF)
- 18.104.22.168.15.3.1 Check Forgery Insurance Fund (CFIF)
- 22.214.171.124.126.96.36.199 Timeliness of Claim Due to Forgery
- 188.8.131.52.184.108.40.206 Forgery Bureau of the Fiscal Service (BFS) (formerly Financial Management Service (FMS)) Claim Package and Taxpayer's Filing A Claim
- 220.127.116.11.18.104.22.168 Processing Forgery Payment Over Cancellation (POC) in Treasury Check Information System (TCIS)
- 22.214.171.124.126.96.36.199 Reversal of Forgery Determination
- 188.8.131.52.15.3.2 Appeal Decision on Forgery Based Check Claims
- 184.108.40.206.220.127.116.11 Appeals of Denials on Forgery Check Claims
- 18.104.22.168.15.3.3 Check Forgery Insurance Fund (CFIF) Impact on the Agencies
- 22.214.171.124.15.4 Law Enforcement Agencies Have Possession of Taxpayer's Refund Check
- 126.96.36.199.15.5 Listings for Monitoring Cases
- 188.8.131.52.16 Automated Refund Trace Applications Integrated Customer Communications Environment (ICCE) Refund Trace, Internet Refund Trace (IRTRC), and Internet Refund Fact of Filing (IRFOF)
- 184.108.40.206.16.1 ICCE Refund Trace Reports
- 220.127.116.11.17 Treasury Check Information System (TCIS)
- Exhibit 21.4.2-1 Command Code (CC) CHKCL INPUT
- Exhibit 21.4.2-2 DISPOSITION CODE CHART NON-RECEIPT CLAIMS CHKCL CLAIMS ONLY
- Exhibit 21.4.2-3 REASON FOR CANCELLATION CODES and GENERATED ACCOUNT INFORMATION
- Exhibit 21.4.2-4 STOP REASON CODES CONVERSION GUIDE
- Exhibit 21.4.2-5 DISPOSITION AND STATUS CODES ADDITIONAL ACTION TIME FRAMES
- Exhibit 21.4.2-6 CATEGORY CODES
Part 21. Customer Account Services
Chapter 4. Refund Inquiries
Section 2. Refund Trace and Limited Payability
September 07, 2017
(1) This transmits revised IRM 21.4.2, Refund Inquiries, Refund Trace and Limited Payability.
(1) Various editorial changes were made throughout this IRM and cross-references were added, removed or revised as appropriate.
(2) IPU 17U1087 issued 07-03-2017 IRM 18.104.22.168 - Added Internal Controls section.
(3) IRM 22.214.171.124.2 - Edited Authority reference and explanation.
(4) IRM 126.96.36.199.6 - Added several items to list of related resources.
(5) IPU 17U0571 issued 03-27-2017 IRM 188.8.131.52 (1) - Added link to preparer misconduct procedures and added letter 129C instructions.
(6) IPU 16U1549 issued 10-18-2016 IRM 184.108.40.206 (3) - Added electronic copy of the FMS Form 150.1 will be on TCIS.
(7) IPU 17U1087 issued 07-03-2017 IRM 220.127.116.11.1 - Updated verbiage for Form 3911 online access and ordering a form for the taxpayer when needed. Added paper procedures when Form 3911 is needed, and clarified fax and address information must be provided on phone and paper inquiries.
(8) IPU 16U1549 issued 10-18-2016 IRM 18.104.22.168.1 (1) Caution - Added instructions to reassign Form 3911/Form 1310 case with IVO involvement.
(9) IPU 17U0571 issued 03-27-2017 IRM 22.214.171.124.1 (1) Updated IVO Stop number.
(10) IPU 16U1609 issued 10-31-2016 IRM 126.96.36.199.1 (1) Caution - Added instructions to forward refund inquiry documentation to IVO.
(11) IRM 188.8.131.52.4.1 (1) (a) - Reworded reference to disposition status code exhibits.
(12) IPU 16U1549 issued 10-18-2016 IRM 184.108.40.206.4.1 - Corrected BFS address.
(13) IRM 220.127.116.11.5 (2) (c) - Removed the interim instructions for the 206C paragraph L and the BFS address.
(14) IPU 16U1549 issued 10-18-2016 IRM 18.104.22.168.5 (2) (c) - Added interim instructions for 206C letter paragraph L and the updated BFS address.
(15) IPU 16U1609 issued 10-31-2016 IRM 22.214.171.124.6 - Removed Economic Stimulus Payment (ESP) reference.
(16) IRM 126.96.36.199.7 (1), (2) and (8) - Updated Limited Payability verbiage to clarify explanation, removed paragraph 2, removed Note under paragraph 8 regarding BFS record keeping time frames and forgery claims.
(17) IPU 17U0571 issued 03-27-2017 IRM 188.8.131.52.7 - Updated instructions to explain expired refunds issued prior to October 1, 1989 cannot be reissued or replaced September 30, 1990.
(18) IRM 184.108.40.206.11 (1) and (3)(b) - Removed the Caution referring to 7 year rule on check copies. Added procedures regarding electronic deposits on check claims.
(19) IPU 16U1549 issued 10-18-2016 IRM 220.127.116.11.15.1 (5) - If/Then updated the BFS address.
(20) IRM 18.104.22.168.15.5 (6) - Removed the interim instructions for the 206C paragraph L and the BFS address.
(21) IPU 16U1549 issued 10-18-2016 IRM 22.214.171.124.15.5 - Updated Status Code 08 instructions, updated new category code from PAID to DDPD for Status code 09, and added interim instructions for 206C letter paragraph L.
(22) Exhibit 21.4.2-1 (2)(c) - Removed direct deposit information and reference to Note.
(23) IPU 17U0571 issued 03-27-2017 Exhibit 21.4.2-1 - Included paper check time frame.
(24) IPU 16U1549 issued 10-18-2016 Exhibit 21.4.2-1 (7) - Added instructions to maintain an open control after initial CHKCL trace input.
(25) Exhibit 21.4.2-2 - Added procedures for disposition OOPS 07 and removed the interim instructions for the 206C paragraph L and the BFS address under disposition 11 PAID.
(26) IPU 17U0571 issued 03-27-2017 Exhibit 21.4.2-2 - Added 206C letter option for OOPS 06.
(27) IPU 16U1549 issued 10-18-2016 Exhibit 21.4.2-2 - Updated Disposition Code Chart to include new category code DDPD for status 09 cases. Updated Status 08 instructions and added interim instructions for 206C letter paragraph L to include updated BFS address. Added Status code 90 instructions.
(28) IPU 17U0571 issued 03-27-2017 Exhibit 21.4.2-5 - Clarified Code 01 Form 4442 should go to local AM Refund Inquiry function.
(29) IPU 16U1549 issued 10-18-2016 Exhibit 21.4.2-5 - Included information regarding 90 day time frame and electronic copy of FMS Form 150.1 added to TCIS.
(30) IPU 16U1549 issued 10-18-2016 Exhibit 21.4.2-6 - Added new category code DDPD and 90 day time frame
Kevin M. Morehead
Director, Accounts Management
Wage and Investment Division
Purpose: This IRM covers information on Refund Traces and Limited Payability. This section covers research procedures to be used when a refund check is lost, stolen, destroyed or not received by the taxpayer and a trace may be required.
Audience: The primary users of the IRM are all customer service representatives (CSR), (telephone & paper), and Taxpayer Assistance Center functions.
Policy Owner: The Director of Accounts Management.
Program Owner: Process and Program Management, Accounts Management, Wage and Investment (WI).
Primary Stakeholders: The primary stakeholders are organizations that Accounts Management collaborates with; for example; Return Integrity & Compliance Systems (RICS) and Submission Processing.
Program Goals: Program goals for this type of work are included in the Accounts Management Program Letter as well as IRM 1.4.16, Resource Guide for Managers, Accounts Management (AM) Guide for Managers.
Employees in the Accounts Management (AM) organization respond to taxpayer inquiries and phone calls as well as process claims and other internal adjustment requests.
The Service completes the exercise of its authority under IRC 6402 for issuing a refund check when it sends a check to a taxpayer’s last known address; and if the check is returned as undelivered, in exercising due diligence in taking into account any subsequently obtained information concerning the taxpayer’s actual address in determining whether to re-send the check. If a taxpayer claims that a Treasury check was never received, the claim is a continuation of the claim for refund under IRC 6402.” If the refund trace shows the taxpayer did not receive the check, IRS will provide a recertification of replacement payment request.
If a taxpayer claims that a Treasury check:
has been misappropriated and cashed (a settlement check request),
has been lost (but not cashed) or destroyed (a recertification of replacement payment request), or
is in the taxpayer’s possession, but has expired (a limited payability request)
If the Service has completed the exercise of its authority under IRC 6402, the Service does not have the authority to provide another check to the taxpayer under Title 26 (the IRC). Such claims regarding a Treasury check are distinct from a claim on the underlying obligation to refund tax. Title 31, Money and Finance, provides the authority to provide payment for a claim on a Treasury check, and Treasury has prescribed regulations at 31 CFR 245, Claims on Account of Treasury Checks. IRS works on such claims with the Bureau of Fiscal Services (BFS) under delegations and directions based on authority under Title 31; e.g., 31 C.F.R. Part 245.3(a) provides “Any claim on account of a Treasury check must be presented to the agency that authorized the issuance of such check...”
The Wage and Investment Commissioner has overall responsibility for the policy related to this IRM, which is published on a yearly basis.
Additional information is found in IRM 126.96.36.199.4, Accounts Management and IRM 21.1.1, Accounts Management and Compliance Services Overview.
Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Customer Service Representatives (CSRs) and Tax Examiners (TEs). For reports concerning quality, inventory and aged listing, please refer to IRM 1.4.16, Resource Guide for Managers, Accounts Management (AM) Guide for Managers. Aged listings can also be viewed by accessing Control Data Analysis, Project PCD, are on the Control-D/Web Access server, which has a login program control.
Program Effectiveness: Program Effectiveness is determined by Accounts Management’s employees successfully using IRM guidance to perform necessary account actions and duties.
Program Controls: Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement is referenced in IRM 21.10.1, Embedded Quality (EQ) for Accounts Management, Campus Compliance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.
For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.
Refer to related resources below. The list is not all inclusive.
Public Law 100-86, Title 4 of the Competitive Equality Banking Act of 1987
Bureau of Fiscal Service - Treasury Check Information System
Document 6209 (IRS Processing Codes and Information)
Integrated Automation Technologies (IAT) Tool Instructions
IDRS Command Code Job Aid
When a refund check is lost, stolen, destroyed or not received by the taxpayer, a refund trace can be initiated. This section of the IRM provides information and instructions for tracing.
Many U.S. Post Offices will forward the refund check if the taxpayer has a forwarding address on file with the local post office. If this is the case, advise the taxpayer to allow 2 additional weeks to the IDRS refund payment date for receipt of the check. If the check is not received by the end of those 2 weeks, follow normal refund trace procedures.
In addition to researching IDRS for prior activity, review Account Management Service (AMS) for prior taxpayer contact.
Command code (CC) CHKCL is used to initiate a refund trace on Integrated Data Retrieval System (IDRS). For CC CHKCL instructions, see Exhibit 21.4.2-1, Command Code (CC) CHKCL Input. To access CC CHKCL, you must be able to access IDRS. See IRM 21.4.3, Returned Refunds/Releases, if there is an "S-" freeze (Undelivered Refund) on the module. See IRM 21.5.6, Freeze Codes, for additional information on "S-" freezes.
Refund inquiries are worked in all campuses. Inquiries received in your campus must be worked at your campus, except for the few instances identified in IRM 188.8.131.52, Refund Trace Actions. Do not forward work to another campus unless the campus specifically requests you forward them the case. The case request must be in writing and signed by the requesting employee's manager. For fax numbers and addresses, see Refund Inquiry Unit Addresses, located on Servicewide Electronic Research Program (SERP) under the Who/Where tab.
The IRS works with other Federal agencies to trace refunds. Bureau of the Fiscal Service (BFS) (formerly Financial Management Service (FMS)) and the Regional Financial Centers (RFCs) play key roles.
BFS, an agency in the Treasury Department, issues and maintains records relating to United States (U.S.) Treasury checks and Electronic Funds Transfer (EFT) deposits. BFS headquarters are located in Philadelphia, PA.
The Department of the Treasury delegates to BFS the authority to certify second payments to payees who did not receive their refund checks or whose check was lost, stolen or destroyed. In case of forgery, BFS certifies second payments, issues a refund check, and notifies the IRS to input transaction code (TC) 971, action code (AC) 078 or AC 079 on Master File.
Effective January 1, 1999, BFS is responsible for making refund offsets for child support and federal agency non-tax debts. This is referred to as the Treasury Offset Program (TOP), formerly the Debtor Master File Program (DMF). Refunds will be offset after IRS certifies them to BFS for payment but before the refund check or direct deposit is issued/made. See IRM 21.4.6, Refund Offset, for information on the TOP.
The Kansas City Financial Center and the Philadelphia Financial Center print and mail the refund checks for all campuses.
The Regional Finance Center (RFC) keeps records for Treasury checks for seven years and on EFT deposit refunds for six years on the following information:
Social Security Number or Employer Identification Number
Amount of refund
Date refund was issued
Name and address on check
Routing transit number and account number
If the actual refund amount differs from the amount the taxpayer claimed, the RFC inserts Notice 54, About Your Refund Check, into Individual Master File (IMF) refund checks and Notice 134, About Your Refund Check, into Business Master File (BMF) refund checks. In addition, BFS will attach a notice of offset if the original amount was reduced due to a TOP Offset.
The Financial Processing Division (FPD) in Philadelphia, PA encompasses the total check claims process.
Per the Taxpayer Bill of Rights, taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels.
Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM 13, Taxpayer Advocate Service) when the contact meets TAS criteria, (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and you cannot resolve the taxpayer's issue the same day. TAS provides assistance to taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that the IRS has not been able to resolve through normal channels or believe that an IRS system or procedure is not working as it should. See IRM 184.108.40.206, Taxpayer Advocate Services (TAS) Guidelines, for further information. If you are able to resolve and close the TAS issue on the same day as the taxpayer contact, do not refer the inquiry to TAS. The definition of same day is within 24 hours. There will be times you can completely resolve the TAS issue within 24 hours. There will also be times that, although you cannot completely resolve the issue within 24 hours, you have taken steps within 24 hours to resolve the taxpayer's issue. These cases also meet the definition of same day. Do not refer these cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. Refer to IRM 220.127.116.11, Same Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.
A refund trace is the name of the process used to track a stolen, lost, or misplaced refund check and replace an authorized refund to the taxpayer. Refund trace also includes initiating a forgery claim and verifying a direct deposit.
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The refund trace process is as follows:
The taxpayer contacts the IRS and states his/her refund was received but then lost, stolen, destroyed, or states it was never received.
If the taxpayer states he/she did not receive their refund and there is some indication identity theft may be involved, see IRM 18.104.22.168.1, Telephone Inquiries Regarding Tax-Related IDTVA Cases, for additional information.
If the taxpayer alleges preparer misconduct as the reason for non-receipt of the refund, see IRM 22.214.171.124, Return Preparer Misconduct - Telephone Assistors/Taxpayer Assistance Center (TAC) Overview. In some situations, you may need to advise the taxpayer that the restoration of the refund to the taxpayer may become a civil matter between the taxpayer and the preparer.
An IRS employee inputs the trace to IDRS using CC CHKCL if oral statement criteria is met, or sends a Letter 129C, Refund Inquiry; Form 3911 Required, with Form 3911, Taxpayer Statement Regarding Refund, to the taxpayer (CC CHKCL is input when the taxpayer returns the Form 3911). See IRM 126.96.36.199 (5), Refund Trace Actions for oral statement criteria.
CC CHKCL initiates the refund trace inquiry to the BFS (formerly FMS).
The original check is replaced or a photocopy of the cashed check along with a claim form is sent to the payee (taxpayer).
If more than 4 weeks have passed since the TC 846 posted, or there is no TC 846 or TC 840, and the taxpayer is in bankruptcy, instruct the taxpayer to call the Centralized Insolvency Operation (CIO) at 1-800-973–0424. See IRM 188.8.131.52.2.1, Contacts Regarding Insolvency Issues, for additional guidance.
A Spanish version of Form 3911 is also available. CSRs and Individual Taxpayer Advisory Specialists (ITAS) should offer this form when they determine it's the appropriate form and will provide the best service to the taxpayer.
The processing steps on tracing a refund check will depend on whether the cutoff date for processing of the "check claim" has passed at BFS (formerly FMS). If the cutoff date has passed, the case is referred to as a Limited Payability (LP), see IRM 184.108.40.206.7, Limited Payability (LP) Rules.
The number of days allowed for timely processing of these cases is prescribed in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. At the campus option:
Inquiries may be processed on a first-in, first-out basis.
If the check claim involves an issued non-receipt refund check, a first read is acceptable to expedite processing.
Cases (either a "check claim" or "LP Trace" ) resulting in check tracing actions must be:
Controlled within 14 calendar days of receipt by IRS.
Controlled on IDRS within 3 workdays of receipt from another function (include day of receipt).
Initiated within 17 workdays of the IRS received date.
Send an interim response Letter 2645C, Interim Letter, (or Letter 206C, Refund Inquiry: Copy of Check Requested/Check Being Traced (Form FMS 1133) if appropriate), when the check claim is not resolved within 30 days of the IRS received date, unless IRS has advised the taxpayer they will receive a response in a specific time frame. If the specific time frame is not met, send taxpayer an interim response.
If you cannot find a refund on the master file, it may have been a Non-Master File (NMF) refund. Use local established procedures to locate refund information. If no information is found using the following research procedures, ask the taxpayer to send copies of any correspondence about the refund. Information received may contain the necessary Document Locator Number (DLN). The Non-Master File DLN is tax class "6" and all refunds from NMF accounts must be manual refunds. Refer to IRM 21.4.4, Manual Refunds. Refund Inquiry employees can also find the required check information on Treasury Check Information System (TCIS).
Most NMF accounts will now be found on the Automated Non Master File (ANMF). Depending on the location of terminals, Refund Inquiry employees may be able to do their own research on the ANMF accounts. Call sites should contact (by phone) their servicing center and request ANMF research. The center should fax the research results back to the call site requesting the information. See IRM 220.127.116.11, Facsimile Transmission of Tax Information, for further guidance.
Employees must obtain a unique "login" through On Line 5081 requesting ANMF for research only. Request must be submitted through local management.
The ANMF allows employees to read any entity or transaction on the file by following the instructions displayed with the "Research NMF" option.
With the "Query" command, employees can research for a desired entity by entering the DLN or TIN, MFT, and tax period of the desired record. If only partial information is available, enter the data for any fields shown on the screen page for the record you need.
Use the "NMF Transcript" option to request a printed transcript (not a certified transcript) that will be delivered from the NMF unit on the following day. The ANMF system does not provide the "print screen" capability that would allow you to copy what you see on the research screen.
At times taxpayers neglect to provide all necessary information when they return Form 3911, Taxpayer Statement Regarding Refund. Employees may either send the taxpayer the appropriate letter or may request the missing information by using the Form 8599, Request for Missing Information Regarding Refund.
Upon receipt of incomplete Form 3911 (or Form 1310 or Form FMS 1133, etc.), action must be taken to return the form(s) to the taxpayer for the missing information. For example, when taxpayers file a joint return, both parties must sign the Form 3911. If only one signature is present, the Refund Inquiry Unit will return the Form 3911 and advise the taxpayer that both parties must sign the document.
Refund Inquiry Unit will update the IDRS Activity Code with the form number, and "TOTP" (e.g., "3911TOTP" , "1310TOTP" , etc.). If this is the initial contact with the taxpayer and you have not initiated a claim with the BFS (formerly FMS), "X" out the received date and close the case.
If a claim has been initiated with BFS, Refund Inquiry Unit will use the appropriate Category Code and keep the case open in "B" status until the final disposition is received. This will provide an audit trail for any subsequent contact by the taxpayer that IRS returned the form as incomplete.
The Form 8599, Request for Missing Information Regarding Refund, is a two part form. Both parts will be forwarded to the taxpayer along with the incomplete form(s). Always include:
A PRE-ADDRESSED return envelope.
Unit Stop Number on the face of the return envelope.
The procedures for processing a refund trace request are the same for telephone, Taxpayer Assistance Centers, or written inquiries.
Except for the condition in (2) below, refund trace cases should be worked at the campus Refund Inquiry team where it was received. When necessary, TAC and remote sites should refer cases to their affiliated Refund Inquiry team.
If the refund is less than one year old, input of the CC CHKCL is required to begin the refund trace. See Exhibit 21.4.2-1, Command Code (CC) CHKCL Input.
Beginning October 1, 2004, Limited Payability refunds over one year old no longer must be worked by the issuing center. Refunds over one year old must be processed by a Refund Inquiry Unit, because they do not meet oral statement criteria. Send taxpayer a Form 3911, Taxpayer Statement Regarding Refund, with a return envelope of your affiliated Refund Inquiry Unit. DO NOT input CC CHKCL. Advise the taxpayer they can either mail or fax their request. Provide the fax number and address of your affiliated Refund Inquiry function. For fax numbers and addresses, see Refund Inquiry Unit Addresses, located on Servicewide Electronic Research Program (SERP) under the Who/Where tab. Refund Inquiry employees see IRM 18.104.22.168.7, Limited Payability (LP) Rules.
Refunds involving accounts with an incorrect taxpayer shown on CC ENMOD must be worked at the campus that issued the refund check. Send completed Form 3911 with the taxpayer's signature or an e-4442, Inquiry Referral (those based on oral statement) to the appropriate campus. Notify the taxpayer and provide the campus information where the Form 3911 is being worked and that the campus will contact them with the disposition of their Form 3911.
When the case must be sent to the center which originated the refund DO NOT request the original return. The center receiving the case must request the return. You may notify the center you are sending the case so they may immediately request the original return thereby reducing the time the taxpayer must wait for a response.
All taxpayer inquiries concerning direct deposits should be treated as any other inquiry, except refunds issued through a RAL or RAC. Refer the taxpayer to the financial institution that issued the RAL/RAC. The input of the CC CHKCL will cause the generation of a FMS Form 150.1 to the financial institution. This serves as an official request to the bank to search for the electronic funds transfer. See IRM 22.214.171.124.7.1, Direct Deposit of Refunds, for more information on refunds.
If the module already has a TC 971 AC 011 posted and no indication of the previous disposition, do not input CC CHKCL to initiate a second trace of the refund. Refer the case to your Refund Inquiry Unit for TCIS research to determine if the bank has provided a response to FMS Form 150.1. If no electronic copy of the FMS Form 150.1 is located on TCIS, Refund Inquiry will initiate another refund trace if 90 days have passed.
CC CHKCL can be used to begin refund trace action if the taxpayer meets oral statement criteria and any one of the following conditions occur.
Research shows the refund was issued and taxpayer states the refund was lost, stolen or destroyed.
Research shows the refund check was issued four weeks ago and taxpayer has not received their refund.
Many U.S. Post Offices will forward the refund check if the taxpayer has a forwarding address on file with the local post office. If this is the case, advise the taxpayer to allow 2 additional weeks to the IDRS refund payment date for receipt of the check. If the check is not received by the end of those 2 weeks, follow normal refund trace procedures.
Research indicates the refund by direct deposit was issued at least 5 calendar days ago and the taxpayer has not received their refund and the financial institution has no record of the deposit.
For IMF only taxpayers, you may accept oral statement if they meet all of the following conditions:
Refund issue date (TC 846 date) is within 12 months of the current date.
Caller is the taxpayer or the taxpayer's authorized representative.
Tax return filed is an Individual tax return.
All filing statuses including Married Filing Joint (MFJ).
Direct deposit issued at least 5 calendar days prior to inquiry and the taxpayer has already contacted the financial institution to check on the status of the refund; or issuance of the refund check was at least four (4) weeks prior to inquiry; or the taxpayer states the check was received and then lost, stolen or destroyed, then no time frame would be involved.
The account does not have unresolved IVO/IDT involvement, including, but not limited to, the bank leads program. See IRM 126.96.36.199, Responding to Taxpayer Inquiries, for additional information.
Taxpayers with valid TIN.
Taxpayer's module does not contain a TC 841 or TC 740 on the module for this specific refund.
Taxpayer resides at the address currently on record (CC ENMOD). If taxpayer resides at a different address DO NOT change the address unless the taxpayer meets oral statement criteria for changing the address. See IRM 188.8.131.52, Oral Statement/Telephone Contact Address Change Requirements, for guidance. If you can update the address per oral statement, input CC CHKCL using the new address to begin the refund trace. If you cannot update the address per oral statement, DO NOT input CC CHKCL. Advise taxpayer you are mailing them a Form 3911, Taxpayer Statement Regarding Refund, to complete, sign and return in the envelope provided. Advise taxpayer they can either mail or fax their request. Provide the address and fax number of your affiliated Refund Inquiry function. For fax numbers and addresses, see Refund Inquiry Unit Addresses, located on SERP under the Who/Where tab. Use of the IAT Missing Refund (CHKCL) tool is mandatory when sending the Form 3911 to the taxpayer. If Married Filing Joint, advise taxpayer both spouses must sign. Send taxpayer a return envelope with the address of your affiliated Refund Inquiry function.
A written statement can be accepted for CC CHKCL input provided all oral statement criteria are met and the correspondence is signed by the taxpayer or their authorized representative.
Form 3911 can be used as written documentation to change a taxpayer's address. Upon receipt of Form 3911, update the address and input CC CHKCL. However, if the refund check was returned undelivered by the Postal Service, do not input CC CHKCL. See IRM 184.108.40.206.3, Undeliverable Refund Checks.
Refer to IRM 21.1.3, Operational Guidelines Overview, for the appropriate disclosure authorization procedures.
If the account had a CP 53D, A Message About Your Request for an Electronic Deposit Refund, issued (see IRM 220.127.116.11, Limited Direct Deposit Refund Procedures), follow the procedures in IRM 18.104.22.168.4, Additional Taxpayer Authentication, prior to initiating a refund trace. If the taxpayer cannot authenticate, direct them to a TAC office for assistance.
If oral statement criteria are met, see Exhibit 21.4.2-1, Command Code (CC) CHKCL Input.
If the contact does not meet oral statement criteria:
If the refund time frame prescribed in IRM 22.214.171.124.4, Refund Issued But Lost, Stolen, Destroyed or Not Received, has been met, advise the taxpayer that Form 3911, Taxpayer Statement Regarding Refund is available through the internet on irs.gov. See IRM 126.96.36.199.2, Other Methods of Obtaining Forms and Publications. If the taxpayer cannot obtain the form online, advise the taxpayer you can mail them a form. Use of the IAT Missing Refund (CHKCL) tool is mandatory when sending the Form 3911 to the taxpayer. Be sure to verify the taxpayer's mailing address. If taxpayer has moved since filing their return and their current address is not on record (CC ENMOD), advise the taxpayer the form is available on irs.gov. DO NOT UPDATE ADDRESS ON CC ENMOD unless the taxpayer meets oral statement criteria. See IRM 188.8.131.52, Oral Statement/Telephone Contact Address Change Requirements.
Do not initiate a refund trace over the phone if there is IDT involvement on the module. When providing a pre-populated Form 3911, Taxpayer Statement Regarding Refund, verify all information is for the correct taxpayer. See IRM 184.108.40.206.1, Telephone Inquiries Regarding Tax-Related IDTVA Cases, for additional information.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
For paper inquiries, mail the taxpayer a Form 3911 and advise them of online trace options. See IRM 220.127.116.11.16, Automated Refund Trace Applications Integrated Customer Communications Environment (ICCE) Refund Trace, Internet Refund Trace (IRTRC), and Internet Refund Fact of Filing (IRFOF).
Advise taxpayers they must sign the Form 3911. If joint return, both taxpayers must sign. If surviving spouse, advise the taxpayer to add "Surviving Spouse" on the decedent’s signature line. See IRM 18.104.22.168.22.2 (1), Processing Decedent Account Refunds, for Form 1310 requirements.
For phone or paper inquiries, advise taxpayer they can either mail or fax their request. Provide the address and fax number of your servicing Refund Inquiry function. Advise the taxpayer they will be contacted within 6 weeks of the date they return the Form 3911. For fax numbers and addresses, see Refund Inquiry Unit Addresses, located on SERP under the Who/Where tab.
Using the Integrated Automation Technologies (IAT) Missing Refund (CHKCL) tool or Account Management Services (AMS), input the following history item on the account - "H,39112TP. "
If forwarding the Form 3911 to another campus with an open Refund Inquiry Unit control, create a history item stating - 39112SC - using command code (CC) ACTON.
If the taxpayer returns the Form 3911, review the form for completeness. If a joint return, both taxpayers must sign. Update CC ENMOD if an address change is required.
If a Form 3911 mailed to the taxpayer is returned by the United States Postal Service as undeliverable, the Refund Inquiry function will research for a new or corrected address or a phone number to contact the taxpayer. If a corrected address is found, re-mail the Form 3911. If no new address is located, destroy the Form 3911.
CC TXMOD must precede input of CC CHKCL. If CC TXMOD is not available, use CC MFREQC. Input CC CHKCLR to request the CC CHKCL screen format. The following items generate from the preceding CC TXMOD:
DO NOT input CC CHKCL if one or more TOP offsets, TC 898s, were done for the full amount of the refund TC 840 or TC 846. Refer the taxpayer to the BFS (formerly FMS) Help Desk as described in IRM 22.214.171.124.1, Taxpayer Inquiries on TOP Offset. The BFS Help Desk telephone number to be provided to the taxpayer is 1-800-304-3107. This is the only BFS number that can provide the taxpayer information regarding their TOP issue. Do not provide the taxpayer with other BFS numbers to call regarding a TOP offset.
For the input of the CC CHKCL and time frame guidance, see Exhibit 21.4.2-1, Command Code (CC) CHKCL Input.
Input information on the CC CHKCL format.
When CC CHKCL is input, the request is sent electronically to the RFC. The request is then forwarded to Philadelphia, PA, where BFS (formerly FMS) determines the status of the check, cashed or not cashed. Trace requests for direct deposits are processed at RFC. Refer to the table below for resulting action.
Do not initiate a refund trace if there is IVO involvement on the module. When providing a pre-populated Form 3911, verify all information is for the correct taxpayer. See IRM 126.96.36.199.1, Telephone Inquiries Regarding Tax-Related IDTVA Cases, for additional information. Also see IRM 188.8.131.52.35.3, -R freeze Overview For Accounts With IVO Involvement, for additional information.
If And Then Check has not been cashed. Check is less than one year old. Credit is returned to the taxpayer’s account and a new refund is issued. Check is more than one year old. Check is automatically cancelled (TC 740) and reissued. Check has been cashed. Check is less than one year old. BFS will send photocopy and claim Form FMS 1133 to the taxpayer. Check meets Limited Payability criteria. A photocopy of the cashed check is sent to the Refund Inquiry Unit to determine forgery.
Unlike the processing of regular check traces, "Limited Payability" procedures do not apply to direct deposit cases. It does not matter if the direct deposit is older than 14 months old. A "Non-receipt Code" of "N" should be used regardless of the age of the direct deposit.
When a taxpayer states he is inquiring about his refund and the refund was a RAL or a RAC, refer taxpayer to their preparer or the financial institution where their refund was deposited. See IRM 184.108.40.206.7.1 (8), Direct Deposit of Refunds, for additional information.
Remember, all taxpayer authentication rules and security requirements are the same for all refund accounts. It does not make a difference how the refund was issued, either direct deposit to the taxpayer's account, a "RAL or RAC" from the preparer, or issued via paper check.
If the refund was based on an injured spouse claim as evidenced by the indicators below, and the overpayment will offset to the non-injured spouse obligation, input CC CHKCL with non-receipt code "H" to set the P- freeze and hold the refund for manual processing. See IRM 220.127.116.11.10.6, Issuing the Injured Spouse Refund, and IRM 21.4.4, Manual Refunds, for additional information.
TC 150 with blocking series 920–929, or
TC 971 AC 071
The taxpayer may subsequently inquire after initiation of a refund trace on their missing refund check or non-receipt of a direct deposit refund. Use the following table in your attempt to resolve the taxpayer's issues.
If Then Taxpayer calls to check the status of his/her case.
Research IDRS to determine the Disposition Code of the claim.
CSRs should only refer a case to the tax examiner with control if, after complete research, he/she cannot answer the taxpayer's inquiry.
Taxpayer finds his/her refund after Form 3911, Taxpayer Statement Regarding Refund, was sent, or a refund trace was initiated per oral statement authority. Check the Disposition and Status Codes to determine if the taxpayer can cash the check. See Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL Claims Only.
A refund trace cannot be interrupted if the campus deadline to "DQ" the trace has passed. Per IRM 18.104.22.168 (5), General Overview for Command Code CHKCL/CHKCLR, CC TERUPC can only be done on the same day of input. If it is too late to cancel the trace and the trace was valid, advise the taxpayer to wait for a replacement check and return the original when the replacement is received.
More than three weeks from the History item "3911TORDCC" .
Advise taxpayer you are checking the status of their claim.
If this is a paper refund check, advise taxpayer he/she will receive a contact within 30 days. Prepare an e-4442, Inquiry Referral, and send to the responsible Refund Inquiry function.
If a direct deposit refund, advise the taxpayer, banks are allowed up to 90 days to respond to our request for information, from the date of the CHKCL input.
Six weeks after taxpayer sends Form 3911, Taxpayer Statement Regarding Refund, or a refund trace was initiated per oral statement authority.
Research IDRS for the claim status.
Determine the latest disposition or status code. Frequently used disposition and status codes are described in Exhibit 21.4.2-5, Disposition and Status Codes - Additional Action Time Frames.
If you are an assistor at a call site or a TAC office, and you cannot resolve the taxpayer's inquiry, you may need to refer (FAX) the case to the Refund Inquiry Unit which either now controls a case, or to your affiliated RI unit if there is no current control base. Advise the taxpayer to expect a response within 15 days.
Taxpayer received Form FMS 1133 and check was cashed by someone other than the taxpayer. Advise the taxpayer to complete the claim form (Form FMS 1133) and return it to BFS (Formerly FMS) to pursue the claim. Taxpayer received Form FMS 1133 and does not wish to pursue the claim. Advise the taxpayer no further action is required. Taxpayer may keep the copy of the check for personal records. Taxpayer finds the original check and also receives a replacement. Advise the taxpayer to return the original as soon as possible. See IRM 22.214.171.124.4, Returned Refund Check Procedures, for information. Input a History Item on CC TXMOD:H:CHKFOUND.
Upon receipt of cases from the field where it has been more than three weeks since the CC CHKCL was input and no Disposition Code received, the Refund Inquiry Unit is to reinput the CC CHKCL and advise the taxpayer of the action.
If a subsequent claim has been initiated, AND CC CHKCL was input, THEN complete the following:
If the Disposition Code "11" is on IDRS, provide the check information (check and serial numbers) using CC IMFOL# and have the taxpayer contact the BFS (formerly FMS). They can be reached by phone at (800) 826-9434 between the hours of 6:00 AM and 6:00 PM ET and advise the taxpayer that they offer English and Spanish speaking assistance. Refer to Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL Claims Only, and Exhibit 21.4.2-5, Disposition and Status Codes - Additional Action Time Frames to identify codes.
If the taxpayer prefers they can send a letter to BFS at:
Department of Treasury
Bureau of Fiscal Services
Check Resolution Division
P.O. Box 51318
Philadelphia, PA 19115-6318
If you cannot determine the Disposition Code (history has fallen off of IDRS), a TC 971 AC 011 is on the module and the refund does not meet Limited Payability criteria, provide the check information (check and serial numbers) using CC IMFOL# and refer the taxpayer to BFS per paragraph (1) (a) above.
Close the case.
This applies only to refunds checks issued within 14 months of the TC 971 AC 011 date and there is not a TC 841 or TC 740 matching the TC 846 or TC 840 date.
For more information on refund checks issued more than 12 months from the current date, see IRM 126.96.36.199.7, Limited Payability (LP) Rules.
If a refund was direct deposit, refer to IRM 188.8.131.52.7.1, Direct Deposit of Refunds.
The Refund Inquiry Unit will monitor cases after input of CC CHKCL to ensure proper actions. See Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL Claims Only, and Exhibit 21.4.2-5, Disposition and Status Codes Additional Action Time Frames, to determine if follow-up action(s) is required.
The following actions occur once the refund trace reveals the check has been cashed:
BFS (formerly FMS) sends a copy of the check with a Form FMS 1133 Claim Form directly to the taxpayer.
The taxpayer returns the Form FMS 1133 directly to BFS, except in case of Limited Payability.
IRS will receive a Disposition Code "11" and Refund Inquiry will send Letter 206C, Refund Inquiry; Copy of Check Requested/Check Being Traced (Form FMS 1133), with paragraph "L" . Provide the check information and close case.
Refund Inquiry will forward subsequent claims received to BFS and notify the taxpayer.
Depending on BFS's response, the taxpayer may receive either a replacement refund, denial letter, or interim response.
BFS sends a Claims Disposition Notice to the IRS showing the final or interim disposition. In addition, BFS notifies the taxpayer of the status of the claim.
Input of CC CHKCL generates a request of non-receipt claims and stop payment information. This information is transmitted to the RFC for processing. The RFC will:
Compare information with their records.
Transmit information to IRS indicating status or disposition of claim.
RFC procedures for processing the request are given in the table below:
If Then RFC is unable to read the information transmitted. RFC requests the campus to transmit again. RFC is able to read the information. RFC retains the information for 15 days. Claims information is processed by RFC. Information is used to update open control bases with Status of claim.
The non-receipt claim must:
Be processed in five (5) working days.
Include date of receipt, releasing stop, and disposition.
Determine status of payment or any previous action taken.
The Disposition Code listing goes back to the Refund Inquiry Unit of the center that inputs CC CHKCL or center affiliated with the office which input the CC CHKCL.
Depending on the Status of the refund check one of the following occurs:
If non-receipt (or stop reason) code is And Then Generated Code at BFS (formerly FMS) "N" , "L" , "D" , "S" , or "E" . Check is outstanding. A recertified refund is automatically issued. D "H" or "X" Check is outstanding. Sets "P" Freeze. Credit must be released (i.e., manual refund, credit transfer). D "P" for Photocopy request for spousal dispute. Check outstanding Disposition "33" . Send Letter 1219C, Refund Inquiry; (Joint Form 3911) Requires Certification: Form 1040, with appropriate paragraphs. K "P" for Photocopy request for taxpayer’s records. Check outstanding Disposition "33" .
Send appropriate "C" letter.
Advise the taxpayer the check has not been paid.
Include a Form 3911, Taxpayer Statement Regarding Refund.
Advise the taxpayer if they wish to request a replacement check to complete the Form 3911 and return it to the center which issued the check.
If an open control base, close with Activity Code "3911TOTP" .
K "C" . Check Cashed BFS sends Certified photocopy of the cashed check. L Any code except "C" or "P."
Refund less than 14 months old and check cashed. BFS sends photocopy and Form FMS 1133 Claim Form to taxpayer. D "P" and Limited Payability.
BFS sends photocopy only to the campus.
The campus determines whether the check was forged or sends a Form 13818, Limited Payability Claim Against the United States for the Proceeds of an Internal Revenue Refund Check, and the check photocopy to the taxpayer.
Title 4 of the Competitive Equality Banking Act of 1987 (CEBA), Public Law 100-86, (Aug. 10, 1987), commonly referred to as Limited Payability (LP), established rules for cashing government checks:
Treasury does not have to pay a refund check issued prior to October 1, 1989, that was not negotiated by September 30, 1990. See Section 1002 of CEBA codified at 31 U.S.C.A. § 3328 (a)(1)(B)).
Treasury does not have to pay a refund check issued on or after the effective date of October 1, 1989, that was not negotiated within 12 months after the issue date of the check. See Section 1002 of CEBA codified at 31 U.S.C.A. § 3328 (a)(1)(A).
After 12 months Treasury cancels a refund check: and, if the check is still outstanding on the 15th day of the 14th month, the proceeds are "returned" to the IRS for crediting taxpayers' accounts to offset the payment entries. See 31 U.S.C.A. § 3334.
The law also places a limitation on the time IRS can recover funds from the banks or financial institutions.
Under the Limited Payability provision, checks expire (are not negotiable) the last business day of the 12th month from the issue date. See table in paragraph (3) below.
Taxpayers may submit claims for refund checks after the one-year time limit has expired. These claims are subject to Limited Payability provisions. Claims must be submitted to the BFS (formerly FMS) by the 15th day of the 14th month, by using CC CHKCL with Non-Receipt codes N, L, S, D, E, H, or X. See chart in paragraph (3) below.
The chart below provides the refund issue date, the date a check can no longer be negotiated, and the last date an LP claim can be submitted.
Refund Issue Date is 12 Months after check date. Check cannot be cashed 15th day of the 14th month after issue date January February 1 March 15 (of the following year) February March 1 April 15 March April 1 May 15 April May 1 June 15 May June 1 July 15 June July 1 August 15 July August 1 September 15 August September 1 October 15 September October 1 November 15 October November 1 December 15 November December 1 January 15 December January 1 (second subsequent year) February 15
The CP 32, New Refund Check - Old Check Not Cashed, and CP 237, Notice of Issuance of Refund check to replace expired check(BMF), is sent to the taxpayer when an expired check is reissued. Refer to IRM 21.3.1, Taxpayer Contacts Resulting From Notice Issuance.
LP claims received after the 15th day of the 14th month, Non-Receipt code P or C must be used. BFS will only provide a photocopy of the check. Before inputting CC CHKCL to request a photocopy on an LP check, research the TCIS system. If not available on the system, input CC CHKCL. All LP claims must be processed by IRS.
Any CC CHKCL input after the 15th day of the 14th month with a Non-Receipt code other than P or C will receive a Disposition Code 18 (if check is cashed) and will NOT create an BFS claim. See Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL Claims Only, for Disposition Code 18.
If BFS records show the refund check is still outstanding on the 15th day of the 14th month, then BFS will cancel the refund and return a credit to IRS which will post in approximately the third week of the 15th month after issuance. It will post on the tax module as a TC 740 with blocking series 66666. See IRM 184.108.40.206.7.2, Limited Payability Computer Paragraph (CP) 32/237.
BFS returns credits to IRS through the Government On-Line Accounting Link Systems (GOALS). BFS Headquarters Operations in Philadelphia, PA sends detailed supporting information to Martinsburg Computing Center (MCC).
The Treasury Receivable, Accounting and Collection System (TRACS) replaces the SF1081 and includes three types of transactions:
Payment Over Cancellation (POC) debits.
MCC sorts the transactions as either IMF, BMF, or Miscellaneous. IMF and BMF transactions are directly posted to taxpayer's Master File accounts and MCC forwards three separate listings for each of the three categories to the campus for further processing. These listings are to be used by the Refund Inquiry employees as research tools.
The listings are titled as follows:
TRACS LISTINGS: RECLAMATIONS (REC)
TRACS LISTINGS: UNAVAILABLE CHECK CANCELLATION (UCC)
TRACS LISTINGS: PAYMENT OVER CANCELLATION (POC)
Transactions are posted as:
TC 740 – Limited Payability (LP) cancellations — Block and Serial "66666" , "S-" Freeze is set. Credit returned on checks automatically cancelled after expiration of one (1) year negotiability period as provided by the Limited Payability Law.
TC 841 – Reclamation Credits — Block and Serial "88000" , "P-" Freeze is set.
TC 841 – Unavailable Check Cancellations (Form 1184 request) — Block and Serial "88111" , "P-" Freeze is set.
TC 841 - Unavailable Check Cancellations (non-receipt codes H or X) -- Block and Serial "88888" , no P- Freeze set.
TC 843 – Payments Over Cancellations — Block and Serial "55111" .
The Reason Codes for the TC 740 are:
Code 02 – Checks returned to the RFC by the Postal Service as undeliverable. Credits will post as TC 740 with the Block and Serial Number "99999" and set an "S-" Freeze.
Code 40 – Credit returned on checks automatically cancelled after the expiration of 1 year negotiability period as provided by Limited Payability Law. Credits will post as TC 740 with a Block and Serial Number "66666" . Credits under ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will set an "S-" Freeze.
The Reason Codes for the TC 841 are:
Code 01 – Checks intercepted per IRS request. Credits will post as TC 841 with the Block and Serial Number "55555" and set a "P-" Freeze.
Code 03 – Checks returned to the RFC for reasons other than undeliverable. Credits will post as TC 841 with the Block and Serial Number "99999" and set a "P-" Freeze.
Code 08 – Checks returned on outstanding check as a result of a Check Claim (TC CHKCL Status "32" ), input with non-receipt codes "H" or "X" . Credits will post as TC 841 with the Block and Serial Number "88899" and set a "P-" Freeze.
Code 09 – Credits returned as the result of a check claim when the check is outstanding. Credits will post as TC 841 with the Block and Serial Number "88888" and does NOT set a freeze.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ A refund check is automatically reissued on first time LP cancellations. A second or subsequent LP cancellation remains frozen on the account and eventually results in a TC 388 "Statute Expiration Clearance" to zero balance if credit is never released.
Credits between ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will automatically release to the taxpayer. A CP32, New Refund Check - Old Check Not Cashed or CP 237, Notice of Issuance of Refund check to replace expired check, is issued to the taxpayer explaining the original check was not cashed and a replacement check is being issued. If the credit is less than ≡ ≡ no notice is generated and no further action will be taken unless the taxpayer contacts IRS.
Credits over ≡ ≡ ≡ will generate CP 32A, New Refund Check - Old Check Not Cashed - we need you to call us to get the refund reissued, or CP 237A, Notice of need to contact IRS to replace second issued refund check that expired, to the taxpayer and set an "S-" Freeze. Taxpayers must contact IRS for the refund to be released. If the taxpayer responds by phone, notice, or letter, see IRM 220.127.116.11.10, Processing Limited Payability (LP) Responses.
Beginning July 2011, a "2-D Bar Code" pilot program involving various CP notices (including CP 32A) will be implemented. Some of the notices will still display the entire SSN while others will have the SSN redacted/masked (e.g., XXX-XX-1234). In order to identify the account, a "hand held" bar code scanner must be used to read the taxpayer account information. If the scanner cannot read the bar code, CC TPIIP must be used. For more information on the command code, refer to IDRS Command Code Job Aid located on SERP under IRM Supplements. Additional CP notices utilizing this configuration requiring the bar code scanner will be rolled out periodically in the future.
CP 32 and CP 32A are no longer routed to the Refund Inquiry Unit for 100 percent review. These notices are mailed directly from Machine Services. The new notice format sufficiently explains the Limited Payability (LP) expired check and subsequent refund to the taxpayer. Taxpayers receiving a CP 32A or CP 237A notice, must respond by phone or mail before a refund can be re-issued.
Employees other than those at the Refund Inquiry Unit must follow the table below:
If Then Taxpayer wishes to return an expired check. Follow returned check procedures in IRM 18.104.22.168.6, Resolving Returned Expired Refunds Limited Payability. Expired check on the account with an "S-" freeze. Follow "S-" Freeze procedures in IRM 21.4.3, Returned Refunds/Releases. Expired check with no credit on the module. Notify the taxpayer of the status and follow normal refund inquiry procedures if taxpayer indicates check was not received. See IRM 21.4.1, Refund Research.
If original refund was a manual refund, it may need to be reissued manually. Refer to IRM 21.4.4, Manual Refunds.
The following account actions occur automatically:
If And Then First-time LP cancellation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Refund is automatically reissued (unless other freezes on the account that prevent refund).
A computer generated notice CP 32, New Refund Check - Old Check Not Cashed, or CP 237, Notice of Issuance of Refund check to replace expired check.
There is a second or subsequent LP cancellation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Taxpayer does not contact the IRS. LP cancellation ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
No automatic release.
Will post as "S-" Freeze.
A CP 32 or CP 237 is not issued.
No further action is taken.
LP cancellation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . No automatic release. A CP 32 or CP 237 is issued.
LP cancellation credits post to an account as a TC 740. The posted credits have a DLN with a blocking series-serial number "66666" .
Credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ and credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ that are frozen for other reasons, including second LP cancellations, will generate complete master file transcripts and CP 32, and CP 237. These CP notices are identical to CP 32A and CP 237A except for the routing instructions.
If taxpayer contacts IRS by phone, paper, or in person, use the following table to release a refund on a LP response.
If And Then Original refund was a generated refund, TC 846. S- Freeze and credit on module, and no open control present on the account (credit tax period or other tax periods).
Release the credit using CC CHK64 or a manual refund, if appropriate.
See Note below.
Original refund was a manual refund.
Further research may be necessary.
Replacement refund may need to be manual.
CC CHK64 input without further action requires no source document. Enter "No Source Document (NSD) LP Release" or other appropriate remarks. If IRS is not at fault, DO NOT allow additional interest. Suppress the undeliverable notice. See IRM 22.214.171.124.6, Resolving Returned Expired Refunds Limited Payability for additional information.
CC CHK64 does not allow for the input of a Bypass Indicator (BPI). Injured Spouse refunds must be issued via manual refund. A manual refund is also needed for a deceased taxpayer along with the appropriate documentation. Refer to IRM 21.4.4, Manual Refunds, and IRM 21.4.6, Refund Offset.
Take further action on the account if needed:
Contact other functions of IRS.
Contact the taxpayer. See Letter 533C, Refund Check Undelivered or Not Negotiated. Suspend the case and give the taxpayer 30 days to respond.
The following directions are for processing claims on cashed refund checks that are now Limited Payability (LP). If a copy of the check is needed, use TCIS. When securing a check copy using TCIS, input a TC 971 AC 011 on CC TXMOD using the date you secure the check. You must also include the money amount of the check in the FREEZE-RELEASE-AMT field.
Employees may deny the taxpayer's claim based on the check copy or other information. If the check meets Limited Payability criteria and the taxpayer indicates the check involves forgery, and you are unable to make a determination, send the taxpayer a Form 13818, Limited Payability Claim Against the United States for the Proceeds of an Internal Revenue Refund Check, with a return envelope for your Refund Inquiry function. When sending a forgery claim form or denying the taxpayer's claim:
Close case with TC 290 .00 using case file as a source document. Attach a copy of the Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid. If a copy of the check was needed to work the case, a copy of the check must be included in the case file.
If Form 13818 is included in the letter, notate in activity "F13818TOTP" .
When the taxpayer returns the completed and signed Form 13818, the Refund Inquiry tax examiner must:
Review the claim form for all required information and signatures.
Compare endorsement(s) on the check to available samples of taxpayer signatures. If the check was electronically deposited via a mobile device or other electronic method, the check may not contain a signature. Contact BFS for information on deposit method.
Review the taxpayer's answers to questions on the Form 13818.
Determine if the IRS erred in sending the refund check to the incorrect address. Do not deny the claim based solely on the address. The check could have been intercepted prior to the taxpayer taking possession. Conduct signature research as indicated in the paragraphs below.
Decide to continue processing or deny the claim.
If the IRS did not send the check to the correct address, follow the chart below.
If Then It appears the taxpayer benefited from the check proceeds.
Deny the claim.
Send Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid, with appropriate paragraphs.
It appears the check was cashed with taxpayer's permission.
Deny the claim.
Send Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid.
Check is stamped with a business endorsement different from name on CC ENMOD and no connection to the taxpayer can be found. Allow the claim. There is no endorsement other than the bank's endorsement on the check. (No signature appears on the check.) The claim should be denied. Banks do not normally accept government checks without an endorsement unless the check is being deposited to the taxpayer's account. There is indication the taxpayer is making a fraudulent claim.
Deny the claim.
Send Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid, with an explanation to the taxpayer.
No check copy or endorsement is available for handwriting analysis.
Review taxpayer's account for any prior or subsequent year claims (TC 971 AC 011).
Request any documentation such as:
Anything the taxpayer has that convinces him/her the check was not received, or information you feel may be helpful.
After all information is considered:
If Then Claim is valid. Continue to process, see IRM 126.96.36.199.14, Account 6565 Processing for Refund Inquiry Function. Denying the claim. Send Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid, with appropriate paragraphs.
If you believe the taxpayer’s claim is valid or no specific reason to deny claim can be found, allow the claim following the procedures in IRM 188.8.131.52.14, Account 6565 Processing for Refund Inquiry Function.
Send the case to the National Forensics Laboratory (NFL) for signature comparison only if you cannot determine if the endorsement on the U. S. Treasury check is a forgery. It may be necessary to request NFL assistance in the following instances:
The endorsement is written, while the samples are printed. Obtain written samples from the taxpayer before forwarding to NFL.
The endorsement is printed, while the samples are written. Obtain printed samples from the taxpayer before forwarding to NFL.
A stylized signature appears on the check and legible writing is used on Form 13818 or Form 3911, Taxpayer Statement Regarding Refund.
Legible writing is used for the endorsement and stylized signatures are used on the Form 13818 or Form 3911, Taxpayer Statement Regarding Refund.
When sending the case to NFL, review the check copy to make sure the check number, symbol number, payee name and amount are correct. Send the case to the address below with the following information:
Form 13437IRS National Forensic Laboratory, Request for Services (Rev. 03/2017), must be completed and submitted. Follow the instructions on the form, pages 2 and 3, for the handling and delivery of the complete case.
Photocopy of check (front and back), completed Form 13818, and any taxpayer correspondence.
Photocopy of three tax returns, if available.
Send to the IRS National Forensics laboratory on Form 3210, Document Transmittal, via UPS, at the address below:
IRS National Forensics Laboratory
525 W Van Buren
Chicago, IL 60607
Requests for lab assistance are usually completed in less than 60 days. If you have not received a response and it is more than 60 days, you may contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Tell them you are calling to follow up on a Limited Payability Trace. Provide the taxpayer’s last name and Social Security Number (SSN).
When the response is received from the NFL, the entire case file will be returned with a cover sheet entitled "Report of Laboratory Examination, IRS Claim Resolution (LP Trace)."
If NFL response indicates: Then the payee endorsed the check Deny the claim, send Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid. the payee did not endorse the check Allow the claim, if it otherwise appears valid. additional signature samples are required
Correspond with taxpayer using Letter 2219C, Refund Inquiry; Check Claim Received, Interim, Handwriting Sample Requested, using an open paragraph.
Request copies of ten (10) documents signed within one year of date of refund check, if available, or
Request taxpayer to sign his name ten times on the back of the "C" letter.
When signatures are received, return case to "NFL" with "NFL" cover sheet on front or make the forgery determination if possible.
a better copy of the check is needed
Research TCIS or call BFS (formerly FMS) for a better photocopy of check.
When better copy received, return case to "NFL" with "NFL" cover sheet on front.
If a better copy is not received, elevate the case to your manager to request better check copy from BFS. Follow (2) above when better copy is received. If better copy is not provided, do not return to "NFL" .
If claim on an Limited Payability trace is denied for any reason, send Letter 2218C, Refund Inquiry; Check Claim Disallowed, Check Endorsed/Paid. Keep a copy of the letter and a copy of the check with your case. Close case TC 290 .00 and file document.
If taxpayer disputes denial, reopen case and reconsider decision based on the information provided by the taxpayer.
When a regular CC CHKCL trace finds the refund check has been negotiated, BFS will send a copy of the check with a Form FMS 1133 Claim Form directly to the taxpayer. Form FMS 1133 is used by the taxpayer to file a claim for replacement of a refund check that has been negotiated by someone other than the taxpayer and the taxpayer or BFS may send the forms to IRS. Form FMS 1133 on BFS claims received in the Refund Inquiry Unit should be processed as indicated below:
If And Then Taxpayer confirms the signature on back of check is authentic or genuine Taxpayer returns claim form to the IRS Close control base: "TPRECCK" . Taxpayer confirms the signature on back of check is authentic or genuine
Taxpayer returns the claim form to BFS
When BFS sends information to IRS
Close control base. Taxpayer states signature is not authentic
Taxpayer returns Form FMS 1133 to IRS
Refund Inquiry Unit will review the form for completeness and then send it to BFS. Send the taxpayer an acknowledgement Letter 206C, Refund Inquiry; Copy of Check Requested/Check Being Traced (Form FMS 1133), advising them their claim was forwarded to BFS.
BFS will make the claim determination, and
Forward the determination to the IRS on the BFS Claims Disposition Notice (CDN).
Refund Inquiry Unit will work case according to disposition on the CDN.
Taxpayer states signature is not authentic The Form FMS 1133 is incomplete Refund Inquiry Unit will return it to the taxpayer, with appropriate "C" letter requesting they complete the form and return to BFS.
If the taxpayer calls to check on the status of Form FMS 1133 after it has been returned to the BFS Check Claims Branch, advise them they must personally contact the Branch at the toll-free number (800) 826-9434 (English and Spanish speaking assistance is available at this number). Provide the taxpayer with the check symbol and number. Use IMFOL# to find the check symbol and number.
Upon receipt of an undeliverable Form FMS 1133 from BFS (formerly FMS), National Office or U.S. Postal Service, Refund Inquiry Unit will complete the following:
Open control base with Activity Code "UNDEL1133C" .
Use the received date of the undeliverable Form FMS 1133 as the received date.
Put account into Status "B" , Category Code "3858" .
Research CC ENMOD for address update subsequent to the date of the taxpayer inquiry.
Determine if there were transposition errors in the name/address.
If you can locate an updated address or you can correct transposition errors in the address:
If a current address is unavailable or transposition errors not found, update the control base with Activity Code "NONEWADDR" and close the base. Destroy the Form FMS 1133 as classified waste per IRM 184.108.40.206.10, Classified Waste.
Once it is determined a refund check has been cashed and BFS decides whether or not the payee endorsed the check, the disposition information is sent to the Refund Inquiry function on an BFS CDN. As of March 30, 1998, BFS issues replacement settlement checks directly to the taxpayer on refunds determined to be forged or when appropriate, issues denial letters.
Using the Payee Identification (TIN) or check information on the CDN, research CC SUMRY, CC IMFOLT, or CC IMFOLC to locate the refund in question. If using IMFOLC (only on checks issued on January 1, 2004 or later) the correct tax module will appear.
If there is a control open to Accounting function or the CDN is for a refund with a Payment Over Cancellation (POC) condition (for example, a replacement refund check is issued and both the replacement and the original check are redeemed), route the CDN to the open control or as appropriate to the Accounting team that works POC cases.
If "Settlement Denied" or "Forgery Established" is noted on the CDN, input CC MFREQ(C) if the module is not up on IDRS.
If the explanation says "Forgery Established" , use CC REQ77 to input TC 971 AC 078 on CC TXMOD. Input the date of the CDN as the transaction date. Input TC 290, blocking series 05 for electronic filed returns and blocking series 05 for paper returns. Use the CDN as your source document.
BFS may send more than one CDN on the same refund claim. The first CDN is to advise IRS they are settling with the taxpayer and another CDN with the settlement check information. If there is a previous TC 971 AC 078 on the module, associate the CDN with the previous one in the file or destroy it. Do not input more than one TC 971 AC 078 for the same refund.
If the CDN indicates the "agency will be credited" or similar wording, monitor for the posting of the credit and take appropriate action. If forgery is determined, BFS will pay the taxpayer out of the Check Forgery Insurance Fund (CFIF). See IRM 220.127.116.11.15.3, Secret Service and Check Forgery Insurance Fund (CFIF).
If the explanation says "Settlement Denied" or "Settlement Not Recommended and Case is Closed" , BFS has disallowed the claim and advised the taxpayer. Input a TC 971 AC 079 and file the CDN with TC 290 as instructed in (4) above. Do not input more than one TC 971 AC 079 for the same refund.
If there is a previous TC 971 AC 078 for the same refund, BFS has done further investigation and has disallowed the claim after previously allowing it. Input TC 971 AC 079 and associate with the previous CDN.
If claimant never lived at the check address (Form FMS 1133 question 9 is "No" ), research the return. If the check address was incorrect due to IRS error, research for another taxpayer with the same name at the address shown on the check. If found, process as erroneous refund. If not found, send the case back to BFS with a note: "Please Adjudicate IRS error" . The BFS adjudication process, which could involve research by the United States Secret Service, could extend the time frame for final resolution by 2-6 months. Advise the taxpayer they will be contacted by BFS if additional information is required. If the address on the check is the same as that on the return, send the form back to the taxpayer with Letter 206C, Refund Inquiry; Copy of Check Requested/Check Being Traced (Form FMS 1133), using paragraph "Y" . If the case is a mixed entity, further research may be required to determine if the claimant is entitled to the check. Correct the account if necessary.
If "Settlement not recommended pending refund from bank, incomplete Form FMS 1133 Claim Form, or further investigation" or similar wording, file the CDN. Input TC 290, blocking series 05 for electronic filed returns, or TC 290, blocking series 05 for paper returns.
If BFS advises IRS a settlement check has been issued to the taxpayer, do not issue a manual refund. This action will cause an erroneous refund. Anyone causing an erroneous refund must document the action and the employee must refer to IRM 21.4.5, Erroneous Refunds, and follow applicable actions.
The CDN may have an unusual response and include copies of the Form FMS 1133, check copies, or other forms. If it is not clear what BFS wants, contact the BFS examiner on the CDN and ask what action they intended for the taxpayer or IRS.
If after Disposition 11 is received and the taxpayer contacts IRS, they should be referred to BFS whether or not a CDN has been received. See IRM 18.104.22.168.4.1, Subsequent Inquiries, With Status Codes, Without Prior Forgery Determination (CSR's and Refund Inquiry Unit), for the BFS address and phone number. Do not interfere with BFS claim process.
If the CDN notes that "The payee has released their claim" , close the control base with activity "TPRECCK" .
See IRM 22.214.171.124.15.3.3, Check Forgery Insurance Fund (CFIF) Impact on the Agencies, for additional information regarding CDNs related to forgery claims.
Any CDN that is informational only should be destroyed as classified waste without taking a case count. The following list of examples is not all inclusive.
Alleged forgery being investigated. More information to follow.
Settlement is not recommended at this time. A request has been made to the payee for additional examples of his/her signature.
Appeal received. Further review is necessary to determine what action should be taken.
Settlement not recommended at this time, pending further review by the United States Secret Service.
If a decision is made to allow the Limited Payability (LP) claim, the "Account 6565" is debited and a refund is issued to the taxpayer. Prepare Form 3809 to debit "Account 6565" and post TC 841 to the taxpayers account. Be sure to use the TC 840 or TC 846 date of the applicable refund. Annotate "CAT 1" in the upper left of Form 3809, Miscellaneous Adjustment Voucher.
When forwarding to Accounting include the following:
Completed Form 3809.
Complete transcript of account.
Copy of Form 3911, Taxpayer Statement Regarding Refund, or taxpayer correspondence.
Form 13818, Limited Payability Claim Against the United States for the Proceeds of an Internal Revenue Refund Check, response if one was sent to the taxpayer.
Photocopy (front and back) of the cancelled check. If photocopy not available, an explanation is required on Form 3809.
If case was sent to National Forensics Laboratory, include their response. Annotate on Form 3809 that this response is attached.
Monitor for posting of TC 841. The TC 841 DLN will carry a Document Code "48" and Block Series "88999" . Input TC 290 for .00 to release refund to the taxpayer. Limit interest to the amount on the original refund by including a TC 770 for .00 or the original credit interest amount along with the original CR-INT-TO-DATE of the original TC 776/770.
If the original was a manual refund, a manual refund may be required. See IRM 21.4.4, Manual Refunds
The following information covers miscellaneous refund trace issues. It also contains information on the Check Forgery Insurance Fund (CFIF), listings for monitoring cases, and BFS (formerly FMS) Reports.
When the taxpayer endorses the refund check and gives it to an individual or business, other than a commercial bank, in exchange for something of value (cash, services, payment of debt, etc.), the individual or business getting the check is known as a "Holder in Due Course."
If the check is later lost by or stolen from the "Holder In Due Course" , or processed for an incorrect amount, the holder may be able to make a claim on the check.
A credit union may be considered a "Holder-in-Due-Course" if it handles its finances through a commercial bank. Some very large credit unions deal directly with the Federal Reserve Board (FRB), and therefore would handle a lost in transit issue in the same way as a commercial bank.
Claims sent to IRS by commercial banks for checks that have been cashed and then lost or stolen in transit between commercial banks or between a commercial bank and the FRB will be returned to the bank with all required check information.
If check symbol and serial number are not available, request this information from the RFC.
The claim must be filed with the commercial bank’s Federal Reserve Bank, Government Check Department.
Once the bank submits a claim to the FRB, the FRB will file the claim with BFS (formerly FMS).
Since this was not initiated by the taxpayer, and since the Refund Inquiry function will be researching TCIS for check information, these cases will not be Taxpayer Advocate Service cases at this time.
A "Holder-in-Due-Course" claim must be submitted within one year of the issue date of the check.
If Then Claim is submitted after the one-year period expires. Send a denial letter stating: "We are sorry, but we cannot honor your claim on (fill in check identifying information). Under the Competitive Equality Banking Act of 1987, any claim on account of a Treasury check is barred unless it is presented to the agency that authorized the issuance of the check within one year after the date of the issuance of the check. We cannot take any further action in this matter. " Claim is submitted within one year Inform the taxpayer to contact BFS by phone at 1-800-826-9434 or by sending a letter to:
Department of Treasury
Bureau of Fiscal Services
Check Resolution Division
P.O. Box 51318
Philadelphia, PA 19115-6318
At times, a request for the disposition of a refund check is submitted by the United States Attorney’s office, or by a state attorney's office for court cases.
Ask the requester if a subpoena can be served; if so, it should be served to:
Bureau of Fiscal Service
Regional Finance Center
Attn: Leonard Watley
PO Box 51320
Philadelphia, PA 19115-6320
If the requester states that a subpoena cannot be served, inform him/her that a formal written request must be sent to the campus and the copy may take several weeks.
If a formal request is received and the requester did not state that a certified copy is needed, obtain a check copy from TCIS. If not on TCIS, input the request for photocopy on IDRS using CC CHKCL with type of non-receipt code "P" . If a certified copy is needed, input CC CHKCL with non-receipt code "C" . See IRM 126.96.36.199.2, Input Command Code CHKCL.
Area Offices use Form 4442, Inquiry Referral, to request administrative photocopies. The area office will provide:
Taxpayer identification number
Tax Period and MFT.
Type of refund issued TC 846 or TC 840
Amount of refund
Date of refund
Name, address (where the copy will be mailed) and phone number of IRS employee requesting photocopy
The Refund Inquiry function will process these requests. If any of the required information is missing, the request will be returned to the requester. A photocopy for this purpose should not be regarded as a claim or used to follow-up on a prior claim action.
If an inquiry is received stating the Secret Service (SS) has informed the taxpayer that SS is in possession of the refund check, you must follow these procedures:
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Identify yourself as an IRS employee.
Tell the SS agent you have an inquiry stating that the SS has possession of the refund check.
Provide all necessary taxpayer information regarding the check.
Request verification that SS has possession of refund check.
Obtain from the agent the check and symbol number as well as taxpayer information printed on check.
Print a copy of the check from TCIS. Do not input CC CHKCL.
When credit is returned, if manual refund criteria is met, follow instructions for preparing and issuing a manual refund.
If BFS (formerly FMS) forwards a Claim Disposition Notice (CDN) stating the Secret Service is investigating the negotiation of a refund check, do not contact Secret Service. Refer the taxpayer to BFS. See IRM 188.8.131.52.4.1, Subsequent Inquiries, With Status Codes, Without Prior Forgery Determination (CSRs and Refund Inquiry Unit).
The Check Forgery Insurance Fund (CFIF) (31 U. S. C. §3343) is a revolving fund established to settle payee claims of non-receipt where the original check has been fraudulently endorsed. The CFIF cannot be used to settle claims when the original refund was direct deposited and the taxpayer did not receive the refund.
BFS (formerly FMS) issues all responses to taxpayers whenever there are claims filed that are the result of the non-receipt of a refund check issued within the past year. Their response includes, settlement checks, denial letters and determination pending letters.
The IRS will continue to receive credits for non-receipt claims when it is determined the refund check has not been negotiated. This will be for both undelivered refund checks and non-receipt claims resulting in Status "32" .
Claims involving a Treasury check shall be barred unless:
The claimant presents a statement of non-receipt to the payment certifying or authorizing agency within one year after date of the issuance of the check (Treasury Financial Manual Bulletin No. 90-03, Volume No. 1; Claimability); and
The claimant files a claim within four months from the date on the claims package.
For a timely filed claim, the Commissioner of Bureau of Fiscal Service (BFS) (formerly Financial Management Services (FMS)) will pay out of the Check Forgery Insurance Fund (CFIF) to a payee or special endorsee of a Treasury check the amount of the check if the Commissioner determines that the payee or special endorsee has established:
The presentment of a timely statement of non-receipt to the payment certifying or authorizing agency and the timely filing of a claim form with Treasury pursuant to 31 CFR § 245.3.
The original check was lost or stolen without the fault of the payee or special endorsee, and whose endorsement is necessary for further negotiation.
The original check was cashed and paid by Treasury on a forged or unauthorized endorsement of the payee's or special endorsee's name.
The payee or special endorsee has not participated in any part of the proceeds of the negotiation or payment of the original check.
Losses as a result of the negotiating of checks issued to deceased payees or to payees who were not entitled to payment will be charged to the CFIF.
A claim may be filed by the payee/claimant after the receipt of a claims package, FMS 3858. The claims package includes the claim Form FMS 1133 copy of the paid check, and instructions for completing the claim form.
The claim package is systemically sent if the check requested during processing of CC CHKCL has been paid. The BFS claim Form FMS 1133 and copy of the negotiated check are sent to the payee/claimant by BFS for examination. After examining the copy, if the payee/claimant denies negotiating the check, the payee/claimant should:
Respond to BFS within 4 months from the date on the claim package.
Follow instructions for completing the claim package.
Complete and answer all questions on both sides of Form FMS 1133.
Sign Form FMS 1133 where indicated. Both payee/claimants must sign if check is drawn to co-payees.
If the payee admits to negotiating the check or does not return the claim form, BFS will take no further action.
When BFS (formerly FMS) processes POCs on forgery cases, they will:
Charge the agency for the overpayment.
Send 3858 Claims Package to the agency.
Adjudicate the claim after receipt of the claim form from the agency.
Institute reclamation to the financial institution.
Refer to Secret Service if valid.
BFS (formerly FMS) started issuing settlement checks to payees upon an initial determination of forgery and before they complete the check tracing process, the forgery determination is often premature. When BFS reverses the original forgery determination, they resolve their error by sending to the campuses the Form SF 1081 debit, Payment Over Cancellation (POC). This action places the taxpayer accounts into balance due status.
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The Accounting function will manually post a TC 840 debit for these refunds to the account. The Refund Inquiry Unit can identify these accounts by the Accounting function's use of the following special blocking series on these specific IMF and BMF accounts:
For the IMF Tax Class 2 and BMF Tax Classes 1, 3, and 4, the blocking series on the TC 840 is 550 through 553.
For BMF Tax Class 2, the blocking series on the TC 840 is 554.
Accounting will send a copy of the SF 1081 debits to the Refund Inquiry Unit located at their campus. The Refund Inquiry Units will attach the SF 1081 to their case. This will allow for the immediate identification of any Payment Over Cancellation Case where BFS was the initiator of the settlement check and the settlement check went to the Payee and not to the IRS.
Upon identification, see IRM 184.108.40.206.220.127.116.11, Processing Forgery Payment Over Cancellation (POC) in TCIS.
If BFS (formerly FMS) decides that a claim is valid, they will notify the payee/claimant that the payee/claimant's appeal was successful. BFS will also notify the payment-authorizing agency or certifying agency that the payee/claimant's appeal was successful. Payment to the payee/claimant will be made in accordance with 31 CFR 235 and 31 CFR 245 within the Regulation relating to the CFIF (Settlement From the Check Forgery Insurance Fund).
If BFS determines that a claim is not valid, they will notify the payee/claimant of its denial of the appeal. In its notice of denial, BFS will notify the payee/claimant of the right to sue in federal court.
The notice of denial of a claimant's appeal will serve as the final agency action on a claim. No civil suit may be filed until the claimant has filed an appeal and received an appeal decision.
An appeal is appropriate when a claimant seeks review of a denied claim based on the same information used by BFS (formerly FMS) in reaching its initial decision to deny a claim. The claimant may seek a review of the initial denial based on new or additional information not available at the time of the initial denial.
Appeals shall be made in writing and must be mailed to BFS at the following address:
Bureau of the Fiscal Service
Attn: Customer Service Branch
13000 Townsend Rd.
Philadelphia, PA 19154
Requests for appeal must include a reference check and symbol numbers identified in the notice of denial. To be considered, an appeal must be postmarked no later than 60 days following the date on the notice of denial.
Under the CFIF, all agencies will be impacted by the following:
Generally, Treasury will resume recertification for all agencies on non-receipt claims after forgery is substantiated and the settlement criteria have been met.
BFS (formerly FMS) will issue settlement checks to the payees in a timely manner when forgery is substantiated.
Generally, agencies will not be responsible for recertifying payments out of their appropriations on non-receipt claims after forgery is substantiated and the settlement criteria has been met.
Agencies will receive credit from the CFIF on Payment Over Cancellations (POCs) for "C" , and "D" Stops after forgery is substantiated, and the settlement criteria have been met. See Exhibit 21.4.2-4, Stop Reason Code Conversion Guide, for stop/non-receipt reason code definitions.
After CFIF implementation and a non receipt claim is received and the issue amount is less than or equal to $25.00, the Stop Reason Code is "E" and the check is paid, the following message will be submitted to the agency on the Daily Advise of Status (DAS), "Paid the issue amount is $25.00 or Less, no further action will be taken" .
After CFIF implementation, 3858 Claim Packages will be mailed to the Payee/Claimant on stop codes "C" and "D" , unless otherwise instructed by the Agency. (For stop codes "F" , and "G" , the 3858 Claims Package will be mailed to the address provided by the agency).
After CFIF implementation, the following messages will be included in addition to the Claims Disposition Notice (CDN) messages currently used to advise the agencies of an action taken in adjudicating claims:
"Forgery Established. A Settlement Check Is Being Issued To The Payee" .
"Forgery Established. Treasury Is Crediting Your Account" .
"Alleged Forgery Being Investigated. Settlement Check Has Not Been Issued To The Payee Pending Investigation" . Information only. No action needed. Destroy as classified waste without taking a case count.
"Alleged Forgery Being Investigated. More Information To Follow" . Information only. No action needed. Destroy as classified waste without taking a case count.
"Forgery Established. Treasury Will Not Pursue Reclamation Action Because The Cost Of Collection Exceeds The Check Amount. Case Closed" .
"Forgery Established. Claim Valid But Settlement Not Appropriate, Based On Your Non-Entitlement STOP CODE. Treasury Will Credit Your Account When The Funds Are Collected" .
"Claim Valid But Settlement Not Appropriate Based On Your Non-Entitlement STOP CODE. Treasury Is Crediting Your Account" .
The above list is not all inclusive. Any CDN that is informational only should be destroyed as classified waste without taking a case count.
If an inquiry is received stating a law enforcement agency other than the Secret Service has taken possession of a taxpayer’s refund check, obtain information for contacting the agency before inputting CC CHKCL:
Obtain the name and phone number of the agency.
Request a copy of the police report.
Contact agency to verify it has possession of check.
Tell the agency to destroy refund check when case has been completed. Do not have agency return the check to the IRS.
When the United States Postal Inspection Service seizes a U.S. Treasury check during an investigation, their procedures require them to inform the Regional Financial Center that issued the check. They do this by sending a United States Postal Service (USPS) Form 2697. For checks authorized by IRS, the RFC forwards the form to the agency for recertification of a check.
If USPS Form 2697 is received from the RFC, make sure it indicates the taxpayer is entitled to the check and that the original refund check will not be given to the taxpayer. If sufficient information is available to process a check, initiate a check trace. The form must remain with the case to document the reason for initiating a check tracing action.
As cases progress to each stage of processing required for final resolution, the category code(s) will be changed to reflect the current state of processing.
In some cases, this is done automatically by the computer. In other cases, they are changed using CC ACTON.
Each category code has its own "aging" time that determines when an asterisk appears in the HMMM column on the listings.
The "aging" time is keyed to the minimum follow-up time for that step in the process. If an action is not taken on a case before the cutoff for the next aged case listings, the number "1" will appear in the HMMM column instead of an asterisk.
If anything appears in the "HMMM" column such as an "*" , a number, or "<" symbol, the case is considered overaged.
Category codes that allow aging from the last action date do so only when the case is in "B" Status. For this reason, it is important to maintain the case in "B" Status, unless otherwise directed, to allow easy monitoring of cases.
See Exhibit 21.4.2-6, Category Codes, for "category codes" used in refund inquiry cases. Please note that any category code generated by the computer can also be input manually by using CC ACTON if it is needed to reflect the true Status of the case.
To prevent an excess of closed cases being left in the suspense file, a clerk or designated person must purge the file monthly. If the primary location code is not in the directorship you service, input TC 290 .00, blocking series "05" , using case as your source document.
If a stop pay Disposition Code is not received within 14 days following CC CHKCL input, reinput request.
Monitor cases on a weekly basis using IDRS Category Code listing below:
Category Code Activity Code 1st day overaged Action to take if
"HMMM " appears
RFIQ Various 45 days from received date. Usually a raw unworked case. Find case and take action. If no case, research IDRS for a previous action. May be an error control (i.e., wrong Social Security Number (SSN), tax period). 3911 Various 30 days from received date. Look for a case. If no case, contact taxpayer by phone to determine if oral statement criteria is met. If unable to contact taxpayer or oral statement criteria is not met, send a Form 3911 to the taxpayer. Apologize that we are unable to locate prior inquiry. See IRM 18.104.22.168.1,Form 3911, Taxpayer Statement Regarding Refund. OOPS 07yyyymmdd 14 days from action date. Work immediately CC CHKCL input incorrectly. Research module to determine if request must be reinput. OOPS 04yyyymmdd 14 days from action date. Refund being traced is already cancelled. If the TC 841 or TC 740 has not posted to the account, check TCIS for a cancellation date. Research for an unpostable TC 841 or TC 740 under the old taxpayer identification number if the account has merged since the refund was issued. OOPS 06yyyymmdd 14 days from action date Duplicate CC CHKCL. A previous good CC CHKCL was input for the check and a Disposition 11 or 32 was received. OOPS 08yyyymmdd 14 days from action date. Second direct deposit trace. (Employees must allow 90 days from the initial trace prior to second trace input.) BFS will issue another FMS Form 150.1 to the bank. Notify the taxpayer you are transferring the case to BFS for resolution and place a monitor control on the case for 30 days. See IRM 21.4.2-1, Command Code (CC) CHKCL INPUT, for time frames. If an FMS Form 150.1 is received, update the case control with Category Code
"DDPD" and follow Disposition 09 instructions.
OOPS 27yyyymmdd 14 days from action date. Refund being traced was already cancelled as limited payability. If the TC 740 has not posted to the account, check TCIS for a cancellation date. Research for an unpostable TC 740 under the old taxpayer identification number if the account has merged since the refund was issued. RCTF 3911TORDCC 30 days from action date CC CHKCL input. Research account for a TC 971 AC 011. If no TC 971 AC 011, the prior CC CHKCL request did not take. Determine if another CC CHKCL is required and take appropriate action. If CC CHKCL is reinput, advise the taxpayer of the delay, giving 45 days from the date of the letter for final resolution. RFCK PHOTOREQ 30 days from action date Photocopy or Limited Payability trace CC CHKCL input. Look for a TC 971 AC 011. If not present, CC CHKCL did not take. Obtain a check copy from TCIS or reinput CC CHKCL. ACKN 01yyyymmdd and 65 or 7_ 30 days from action date Acknowledgement of refund trace. Should have updated to a final disposition: 11, 32, or 06. If the control shows a final disposition (11 or 32) posted before the acknowledgement, proceed with the taxpayer's instructions. If not, check TCIS for status. ST32 32yyyymmdd 45 days from action date Refund cancelled. TC 841 should have posted. If refund was reissued, close control. If the TC 841 has not posted, check TCIS to determine if refund is cancelled or research account for an unpostable. 841P 32yyyymmdd 14 days from action date. Case is workable when the TC 841 posted. This is present if CC CHKCL input with an
"H" non-receipt code, returned check, or a refund delete. Take action to resolve freeze.
DDPD 09yyyymmdd 90 days from action date. Direct deposit. Check TCIS for the FMS Form 150.1. If no 150.1 is located on TCIS, see Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL CLAIMS ONLY. PAID 11yyyymmdd 30 days from action date. Cashed check. BFS (formerly FMS) to send claim form to taxpayer. Issue Letter 206CRefund Inquiry; Copy of Check Requested/Check Being Traced (Form FMS 1133), and include the check information and Paragraph "L" . Close case. PAID 14yyyymmdd 30 days from action date.
Cashed check, Limited Payability (LP) trace or photocopy requested. If no check copy received, print one from TCIS. If not available on TCIS, contact BFS.
CC CHKCL input after the Limited Payability (LP) credit posted. Research for TC 740 and take necessary action.
PAID 18yyyymmdd 30 days from action date. Cashed check, regular CC CHKCL with stop code N, L, D, S, H, E, or X input on an LP check. Do not continue to work UNLESS you have a signed Form 3911, Taxpayer Statement Regarding Refund, or other written inquiry from the taxpayer. NLUN Unpostable code 45 days from action date. Nullified Unpostable, reject. Work immediately and never allow to overage. Check the unpostable code and CC TXMOD and/or CC ENMOD to determine if the transaction requires reinput. RFDL RRyyyycyrc 45 days from action date. Refund intercept date. If TC 841 has NOT posted, TCIS for the cancelled refund. The check may have been missed. 841P RRyyyycyrc 14 days from action date. Refund delete, TC 841 has posted. Take appropriate action on the case. 840- Various 45 days from received date. Check IDRS and close case if TC 840 posted. If no TC 840, further research is required. TOAD Various 90 days from action date. If this category is for an LP claim form received from taxpayer, take immediate action. If the case was sent to the National Forensics Laboratory (NFL), a follow-up request is required. 3858 Various 45 days from action date. If this category code is for an LP Claim Form received from the taxpayer, take immediate action. Perform necessary research (i.e., doc request, signature requests.) Analyze the Forgery Claim Form. 1664 Various 45 days from received date. Find case and take action. If no case, research IDRS for a previous action. 3913 Various 45 days from received date. Find case and take action. If no case, research IDRS for a previous action. 3859 Various 14 days from received date. Find case and take action. If no case, research IDRS for a previous action. UDRF Various 45 days from received date. Find case and take action. If no case, research IDRS for a previous action.
The following reports will aid the Refund Inquiry Units in monitoring their Form 3911, Taxpayer Statement Regarding Refund, case inventory associated with case documentation and/or updating the IDRS history field.
Aging Reclamation Report — Report Number CCTRR341
SF 1081 Agency Listing (Credit Reversals) — CCTRR409
Outstanding Accounts (Form 3911) — CCTRR680
BFS Abandonment Notice — CCTRR359
Taxpayers can initiate a refund trace through the automated telephone application or on the internet at http://www.irs.gov/"Where's My Refund" (IRFOF). Generally, these automated systems will only trace the first refund issued during the current processing year. The applications can be used by all taxpayers. If taxpayers who file Married Filing Joint returns cannot initiate a trace using automation, the applications will issue them a Form 3911, Taxpayer Statement Regarding Refund, to get the process started.
The caller first goes through the refund inquiry application that provides information regarding the status of their refund (including the mail date and math error information) and makes a determination on whether their refund is eligible to be traced in automation. If the caller has selected the option indicating the refund check was lost, stolen or destroyed, or the mail date was at least 28 days prior to the date of the call, the refund inquiry application will transfer eligible callers to the refund trace application. The following chart highlights the actions taken when an inquiry is initiated through ICCE (formerly Telephone Routing Interactive System - TRIS):
If Then The caller obtains "refund issued on" and the response and mail date is less than 28 days from current date and the caller did not indicate the refund check was lost, stolen, or destroyed The ICCE refund inquiry application will advise the caller the date the refund was issued, when to call back, and will not send the call to the Trace application. Certain conditions are met such as math error or freeze code Depending on the condition, the caller may be issued Form 3911, transferred to a customer service representative, or provided a call back number for assistance. Caller obtains "refund issued on" response and mail date is at least 28 days prior to current date or caller indicates check was lost, stolen or destroyed. The ICCE refund trace application will input CC CHKCL, and control the case to the Refund Inquiry Unit where the caller was routed.
The IRFOF (Where's My Refund) web site allows the taxpayer to walk through a series of on-line screens. A refund trace cannot be input on any refund check until 28 days after it was issued. If 28 days has passed and the taxpayer indicates they have not received their check, they can initiate an on-line refund trace (except Married Filing Joint taxpayers). If the refund was returned as undeliverable by the Postal Service and an S- freeze is present, the taxpayer will be provided the opportunity to change their address, releasing the refund. If the taxpayer experiences difficulty in initiating a refund trace, they will be advised to call a customer service representative for assistance.
If refund trace criteria is met, IRFOF will automatically input CC CHKCL and control the case to a predetermined Refund Inquiry Unit through IDRS. The case is controlled to an employee number beginning with 099.
Both automated system traces proceed through the normal check trace dispositions, "3911TORDCC" and "01" and will end as a Disposition 11 (cashed check) or 32 (outstanding). Treat all other disposition codes like any other case.
On joint returns, CC CHKCL is not input on either system. ICCE automatically mails a Letter 129C, Refund Inquiry; Form 3911 Required, and Form 3911 to the taxpayer. IRFOF allows the taxpayer to print the Form 3911 on-line. IRFOF provides the mailing address and fax number of the predetermined Accounts Management campus to mail the Form 3911. Married Filing Joint taxpayers must complete and jointly sign the Form 3911 and return it to the IRS before a refund trace can be initiated by the Refund Inquiry examiner.
Two types of reports are generated by ICCE. They are:
Refund Trace CC CHKCL Report
Management Action Report Refund Trace CC CHKCL Request
The Refund Trace CC CHKCL Report indicates the trace input was successful or that a Form 3911, Taxpayer Statement Regarding Refund, was sent to the caller. Upon receipt of this report, the Refund Inquiry Unit may need to take the following action for inventory control.
Research IDRS for open control cases. If there is an open control contact the controlling employee or the employee’s manager.
Only one check trace control must remain open, chances are the most recent control can be closed.
Take appropriate action to begin the refund trace process. Input CC CHKCL when the signed Form 3911, Taxpayer Statement Regarding Refund, is received.
The ICCE report Management Action Report Refund Trace CC CHKCL Request indicates the trace did not take and the Refund Inquiry Unit employees need to follow-up:
Review the tax module and take appropriate action to complete the trace. If there is not enough information to reinput CC CHKCL, send Letter 129C, Refund Inquiry; Form 3911 Required, with a Form 3911, Taxpayer Statement Regarding Refund, to the taxpayer.
If the taxpayer's telephone number is available you may call the taxpayer for additional information.
The system was developed by BFS (formerly FMS) to enhance the check-claim process. The system provides on-line access to the status of both electronic funds transfer and check payments and access to digital images of cashed checks. TCIS provides information on Treasury checks for 7 years after the date of issue and six years for EFT deposits. At most campuses, access to the TCIS system is limited to the Refund Inquiry Units, the Taxpayer Advocate Service, and Criminal Investigation.
TCIS will allow the capability of initiating a request for a copy of a check within 7 years of issuance, or a refund claim no later than the 15th day of the 14th month from the refund date, if you have the appropriate access.
TCIS will house FMS 150.1 information or allow you to initiate a claim on a direct deposit refund issued within 6 years.
(1) For CC input, see Servicewide Electronic Research Program (SERP) hyperlink to IDRS CC CHKCL. Accounts Management employees are required to use the Missing Refund (CHKCL) IAT tool, see IRM 21.2.2-2, Accounts Management Mandated IAT Tools. Click IAT CHKCL Tool Job Aid for input guidance.
(2) Assistors are authorized to input CC CHKCL based on an oral statement from the taxpayer if all the following conditions are met:
Check was scheduled for mail out 4 weeks prior to taxpayer's contact or their direct deposit was issued at least 5 calendar days prior to contact. Use the table below to determine the check mail out date or the direct deposit date. Input immediately if taxpayer states the check was received but lost, stolen or destroyed.
Refund issued as Determine date issued IMF paper check For current year and all prior year IMF returns, the issue/mailing date is found on CC IMFOLT on the line below the TC 846 as "RFND-PAY-DATE:" , and on CC TXMOD on the line below the TC 846 as "RFND-PYMT-DT<" . IMF direct deposit For all current and prior year IMF returns, the deposit date is found on CC IMFOLT on the line below the TC 846 as "RFND-PAY-DATE:" , and on CC TXMOD on the line below the TC 846 as "RFND-PYMT-DT<" . Accelerated Cycle as a check prior to January 1, 2012 See dates in Item 10 listed below. BMF paper check BMF, the issue date is one day after the TC 846 date. BMF direct deposit BMF, the deposit date is six days before the TC 846 date.
If the taxpayer does not meet oral statement criteria, Form 3911, Taxpayer Statement Regarding Refund, can be mailed to the taxpayer with a return envelope of your servicing Refund Inquiry function, or advise the taxpayer that Form 3911 is available through the internet on irs.gov. See IRM 22.214.171.124.2, Other Methods of Obtaining Forms and Publications. Advise taxpayer they can either mail or fax their request. Provide the address and fax number of your servicing Refund Inquiry function. For addresses and fax numbers, see Refund Inquiry Unit Addresses, located on SERP under the Who/Where tab.
TC 846 refund date must be 12 months or less from current date for paper checks.
Tax return filed can be an individual or business tax return.
Taxpayer resides at the address currently on record (CC ENMOD). If taxpayer resides at a different address, DO NOT change the address unless the taxpayer meets oral statement criteria for an address change. See IRM 126.96.36.199, Oral Statement/Telephone Contact Address Change Requirements, for guidance. If you can update the address per oral statement, input CC CHKCL using the new address to begin the refund trace. If the taxpayer does not meet oral statement criteria, DO NOT input CC CHKCL. Advise the taxpayer you are mailing them a Form 3911, Taxpayer Statement Regarding Refund, to complete and sign, or advise the taxpayer that Form 3911 is available through the internet on irs.gov. See IRM 188.8.131.52.2, Other Methods of Obtaining Forms and Publication. Advise the taxpayer they can either mail or fax their form back to the IRS. If the taxpayer prefers to mail the form, enclose an envelope with your affiliated Refund Inquiry Unit address. If the taxpayer prefers to fax the form, provide the fax number of your affiliated Refund Inquiry function. For addresses and fax numbers, see Refund Inquiry Unit Addresses, located on SERP under the Who/Where tab. If Married Filing Joint, advise taxpayer both spouses must sign.
Form 3911 can be used as written documentation to change a taxpayer's address. Upon receipt of Form 3911, update the address and input CC CHKCL. However, if the refund check was returned undelivered by the Postal Service, do not input CC CHKCL. See IRM 184.108.40.206.3, Undeliverable Refund Checks.
If TC 840, send taxpayer a Form 3911 with issuing campus return envelope.
Not a mixed entity account.
Not a full TOP offset matching the TC 846 amount. If TC 898 matches the TC 846 this is a full TOP offset. See IRM 21.4.6, Refund Offset, TOP procedures.
No TC 740, TC 841 or TC 843 matching the TC 846 in question. If freeze codes are present, follow freeze release procedures.
No TC 971 AC 011 (indicates previous trace) posted after the TC 846 date. See IRM 220.127.116.11.4, Responding to Taxpayers Subsequent Inquiries.
(3) After determining taxpayer meets oral statement criteria or a completed Form 3911 has been received, follow the CC CHKCL procedures to start the refund trace (recertification) process.
(4) Access CC TXMOD for the period in question.
(5) Open a control base as follows. This base must be created prior to CC CHKCLR input:
*, IRS received date
(6) See Exhibit 2.4.23-3, CC CHKCL Input Example, for additional information on CC CHKCL. Below is information regarding the input screen.
Overlay CC TXMOD with CC CHKCLR, the response will be CC CHKCL.
Line 1 is generated from CC TXMOD.
Line 2–5 Enter taxpayer's name on Line 2 (Name Line 1). Use the additional name lines for any in-care-of or other information. If the check copy and/or claim form are to be sent to the IRS employee instead of the taxpayer, input Internal Revenue Service on Name Line 2.
Line 6–7 Enter taxpayer's current address or the address where the claim form/check copy are to be sent if the check is paid.
Line 8 Check Number (used by Refund Inquiry Unit ONLY.)
Line 9 Overlay T with the type of non-receipt code:
C = Request for certified photocopy check (no P freeze set).
D = Destroyed, unendorsed check (no P freeze set).
E = Lost stolen or destroyed endorsed check (no P freeze set).
F = Non-entitlement (Used by Refund Inquiry Unit only) (no P freeze set).
H = Unendorsed check freeze cancellation credit (P- Freeze set).
J = Non-receipt of substitute check (Used by Refund Inquiry Unit only).
L = Lost, unendorsed check (no P freeze set).
N = Non-receipt of refund (no P freeze set).
P = Request for regular photocopy of check (no P freeze set).
S = Stolen, unendorsed check (no P freeze set).
X = Endorsed check freeze cancellation credit (P- Freeze set).
Line 9 Refund schedule number (RSN) = YYYYJJJSCTLLLL. On refunds issued in 2003 and later, input the refund schedule number shown on CC TXMOD as "RSN" below the TC 846. On CC IMFOLT the RSN is located to the right of the TC 846. Be sure to modify input using the campus number with which you are affiliated.
YYYY = (1-4 position) Cycle YEAR of the refund TC 846. NOT the TAX PERIOD.
JJJ = (5-7 position) Julian date refund is issued.
SC = (8-9 position) Modify by inputting your affiliated service center.
T = (10th position) File type "1" for IMF/CADE/CADE 2; "0" for BMF; "3" for CADE (obsolete as of January 1, 2012); "4" for IRAF; "5" for other; "6" for Non Master File.
LLLL = (11-14 position) Alpha characters; Four blanks for paper refunds; "Z" followed by three blanks for direct deposit; "I" followed by three blanks for International; "ZI" followed by two blanks for International direct deposit.
Line 9 Enter "Y" Generate TC 971 this generates a TC 971 AC 011. Only the Refund Inquiry Unit can use "N" for this entry.
Line 10 MMYYYY
MMYYYY=Issue date of refund input. Input actual date of the refund
MM= month; YYYY = year.
IMF paper refund check and direct deposit refund dates are found on CC IMFOLT on the line below the TC 846 as "RFND-PAY-DATE:" , and on CC TXMOD on the line below the TC 846 as "RFND-PYMT-DT<" .
BMF check date - Add 1 calendar day to the TC 846 date.
BMF direct deposit date - Subtract 6 calendar days from the TC 846 date.
Accelerated cycle check date, see dates in items 10 below.
Line 10 Type of Payment code (P)
I = IMF
B = BMF
D = IDRS (CC RFUND)
M = Manual refund
Line 10 Sequence number of input from 001–999.
Line 10 DO = leave blank.
Lines 11, 13, and 15 Overlay the dollar signs with the full TC 846 amount of the refund you are tracing, even if a TOP partial offset has reduced the refund amount. If a TC 898 matches the TC 846, DO NOT input CC CHKCL.
Lines 11, 13, and 15 split refund indicator (SRI) = Indicates the type of split refund. Values are:
0 - Not a split refund.
1 through 3 - Enter the SRI related to the TC 846 shown on account for the refund you are tracing.
(7) After CC CHKCL is input, reassign the control base to the Refund Inquiry Unit located at the Accounts Management Center serving your site. An open control base must remain open pending the trace process, which can take up to 90 days for direct deposits and 6 weeks for paper checks. Use the control numbers listed below for processing the case:
Using the Missing Refund (CHKCL) IAT tool will automatically reassign the control base to the Refund Inquiry (RI) Team. Paper refund trace inquiries (e.g., Form 3911, correspondence, etc.) should be worked where received unless the exception in IRM 18.104.22.168, Refund Trace Actions applies. Toll free refund cases generated by Denver and Oakland will be reassigned to Kansas City RI, and Cleveland and Indianapolis will be reassigned to Memphis RI.
Overlay CC TXMOD with:
CC ACTON (new line)
C01 (new line)
Reassign Refund Inquiry Unit number
Andover = 0836088888
Atlanta = 0735300044
Austin = 0636099058
Brookhaven = 0136033333
Cincinnati = 0235300000
Kansas City = 0935903000
Fresno = 1036000005
Memphis = 0336000000
Ogden = 0436400005
Philadelphia = 0536022222
If after inputting CC CHKCL you determine it was done in error, per IRM 22.214.171.124 (5), General Overview for Command Code CHKCL/CHKCLR, CC TERUPC can only be done on the same day of input.
(8) Advise taxpayer:
|Their check was not cashed.||They will receive a replacement check in approximately 6 weeks.|
|Their refund was a direct deposit.||A letter will be issued to the banking institution from BFS (formerly FMS) inquiring about their refund. It can take up to 90 days for a response.|
|Their check was cashed.||They will receive a claim package within 6 weeks to complete and return to BFS in order to pursue their claim.|
|They do not wish to pursue their claim.||No further action is required. They may keep the claim package with a copy of their check for their records.|
(09) Category Codes Associated with Command Code (CC) CHKCL
|RFIQ||Correspondence received regarding refund.||CC ACTON||When case controlled||45 days from received date|
|3911||Oral statement/or correspondence received regarding refund.||CC ACTON||Case controlled or condition identified.||30 days from received date.|
|RCTF||CC CHKCL input for check or direct deposit claim.||Computer generated.||When CC CHKCL input.||30 days from action date.|
|RFCK||CC CHKCL input for Photocopy.||Computer generated.||When CC CHKCL input.||30 days from action date.|
(10) Use the charts below to determine the correct issue date when inputting CC CHKCL for paper refunds that were issued during an accelerated refund cycle. CADE/CADE 2 refunds are processed daily and do not fall into accelerated cycles. See Document 6209, for cycle charts.
IMF accounts for 2011
Cycle 23C Date Check Date 201121 06-06-2011 05-27-2011 201147 12-05-2011 11-25-2011
IMF accounts no longer have accelerated cycles with the implementation of CADE 2 on January 1, 2012.
BMF accounts for 2011
Cycle 23C Date Check Date 201116 (1120) 05-02-2011 04-26-2011 201120 (1041) 05-30-2011 05-24-2011 201129 (1120) 08-01-2011 07-26-2011 201142 (1120) 10-31-2011 10-25-2011
BMF accounts for 2012
Cycle 23C Date Check Date 201216 (1120) 04-30-2012 04-24-2012 201221 (1041) 06-04-2012 05-29-2012 201229 (1120) 07-30-2012 07-24-2012 201243 (1120) 11-05-2012 10-30-2012
BMF accounts for 2013
Cycle 23C Date Check Date 201316 (1120) 05-06-2013 04-30-2013 201321 (1041) 06-10-2013 06-04-2013 201330 (1120) 08-12-2013 08-06-2013 201343 (1120) 11-11-2013 11-05-2013
BMF accounts for 2014
Cycle 23C Date Check Date 201416 (1120) 05-05-2014 04-29-2014 201420 (1041) 06-02-2014 05-27-2014 201429 (1120) 08-04-2014 07-29-2014 201442 (1120) 11-03-2014 10-28-2014
BMF accounts for 2015
Cycle 23C Date Check Date 201515 (1120) 05-04-2015 04-28-2015 201519 (1041) 06-01-2015 05-26-2015 201528 (1120) 08-03-2015 07-28-2015 201541 (1120) 11-02-2015 10-27-2015
BMF accounts for 2016
Cycle 23C Date Check Date 201615 (1120) 05-02-2016 04-26-2016 201619 (1041) 05-30-2016 05-24-2016 201628 (1120) 08-01-2016 07-26-2016 201641 (1120) 10-31-2016 10-25-2016
The Disposition Code can be located in the Activity Field of the IDRS Control History. The Disposition Code is displayed as the first 2 digits of the Activity Code followed by the date BFS (formerly FMS) provided the Disposition in YYYYMMDD format (i.e., 0120130324 = Disposition 01 provided by BFS on March 24, 2013.
Additional disposition code 11 information can be found in IRM 126.96.36.199.4.1, Subsequent Inquiries, With Status Codes, Without Prior Forgery Determination (CSR’s and Refund Inquiry Unit), and Exhibit 21.4.2-5, Disposition and Status Codes - Additional Action Time Frames.
|DISPOSITION STATUS CODE||CATEGORY CODE||DEFINITION||FOLLOW UP ACTION|
|01||ACKN||Claim processed by RFC to Treasury Check Information System (TCIS).|| |
|03||OOPS||Rejected (Failed preliminary validity checks.)|| |
|04||OOPS|| ||1 - 4) Take action to release credit, if necessary. |
5) Initiate the refund trace through the Treasury Check Information System (TCIS).
|05||OOPS||Check previously mailed (within 5 days).||Close Case|
|06||OOPS||Previous CC CHKCL.||Check TCIS for previous claim. If present, send appropriate Letter 129C, Refund Inquiry; Form 3911 Required or 206C, Refund Inquiry; Copy of Check Requested, Check Being Traced (Form FMS 1133), to taxpayer. Include check number and date along with the 800 telephone number for BFS.|
|07||OOPS||No payment issued or unprocessable claim.|| |
|08||OOPS||Second trace input on DD.||Monitor case. |
|09||DDPD|| || |
|10||OOPS||Invalid Stop Reason Code|| |
|2☆||OOPS||Amount difference|| |
|3☆||OOPS||Claim submitted too early for RFC to process|| |
|4☆||OOPS||Duplicate tape claims submitted.|| |
|5☆||OOPS||Invalid Direct Deposit information submitted.|| |
|7☆||ACKN||Photocopy request processed by RFC to TCIS.|| |
|9☆||PAID||Direct Deposit trace input with Non-receipt Code "P" no FMS Form 150.1 will generate.||Reinput trace with Non-receipt Code "N" no limited payability on Direct Deposit. (Electronic File Transfer processed).|
|11||PAID or 3858||Paid -Photocopy and claim mailed to taxpayer.||BFS has sent claim package (Form FMS 1133) to the taxpayer. Refund Inquiry Unit will send Letter 206C, Refund Inquiry; Copy of Check Requested, Check Being Traced (Form FMS 1133), to taxpayer, including check information and paragraph "L" , and close case.|
|14||PAID|| || |
|14||PAID|| ||If no photocopy within 30 days: |
|15||PAID||Paid - Certified photocopy to follow.||Monitor for receipt for certified photocopy. |
|17||PAID||Paid - Endorsed, photo/claim to follow.||Monitor. If no photocopy in 30 days, contact BFS.|
|18||PAID||Paid - Claim submitted after the Limited Payability cutoff date.||If Form 3911, Taxpayer Statement Regarding Refund, is available, research TCIS for a check copy. If not on TCIS, process as a Limited Payability (LP) Trace, reinputting the CC CHKCL with Non-receipt Code "P" . If no Form 3911 is present, correspond with the taxpayer.|
|20||OOPS||Payment declined due to alteration of check. Photocopy and claim to follow.||Monitor if no photocopy in 30 days, follow up, contact BFS.|
|22||OOPS||Insufficient agency information.|| |
|27||OOPS||Previously processed as Limited Payability Check Cancellation and refund credit (TC 740) was returned by the RFC.||Take action to release credit, if necessary.|
|31||Check Outstanding. RFC will issue recertified check.||Monitor for TC 841.|
|32||ST32||Outstanding check cancelled credit will be returned to IRS.||Monitor for TC 841.|
|33||OOPS||Outstanding - No Photocopy.||Send Letter 1219C, Refund Inquiry; (Joint F3911) Requires Certification: Form 1040.|
|53||OOPS||Reject - Duplicate Stop||Contact BFS Check Information Section at 855-868-0151 Option 1.|
|65||ACKN||Refund associated with TOP Offset.|| |
|71||OOPS||TOP Offset refund in full.||Advise taxpayer to contact BFS TOP Call Center. See IRM 21.4.6, Refund Offset for more information.|
|72||OOPS||TOP Offset partial refund.||Advise taxpayer to contact BFS TOP Call Center. See IRM 21.4.6, Refund Offset.|
|90||OOPS||TCIS/PACER disconnect error.||Contact BFS to reset the interface indicator.|
|☆ (Asterisk equals blank)|
The "Reason for Cancellation Code" associated with TC 740, TC 841 and TC 843 credits determines what block and serial number will be used to post the credit back on the account, and determines whether or not a freeze will be set on the module.
Direct deposit reject reason codes can be found in IRM 188.8.131.52.8.1, Direct Deposit Reject Reason Codes.
|CODE||DESCRIPTION||T/C||BLOCK and SERIAL NUMBER|
|01||Intercepted checks, "P-" Freeze set.||841||55555|
|02||Undeliverable checks, "S-" Freeze set.||740||99999|
|03||Returned checks, "P-" Freeze set |
(Other than Intercepted or Undeliverable).
|08||Unavailable check cancellation credit (Credit returned on outstanding check as a result of check claim). |
(CHKCL/STATUS-32) "P-" Freeze set.
|09||Unavailable check cancellation credit |
(Credit returned on outstanding check as a result of check claim).
|09||Payment Over Cancellation (POC).||843||55111|
|40||Limited Payability (LP) expired check credit, "S-" freeze set (1992 only).||740||666XX|
|40||Limited Payability (LP) expired check credit.||740||66666|
|NA||If CADE sends a module back to IMF in the same cycle as the refund generation, it will post as a TC 841 in blocking series 99998. This means the refund did not actually generate.||841||99998|
|Reason for Cancellation Code will appear as "RC" on SF 1098, Schedule of Canceled Checks. See IRM 184.108.40.206.1, Treasury Checks Returned to the Submission Processing Center and Regional Financial Center, for an example of the form.|
(1) IDRS CC CHKCL programming converts most types of Non-receipt Codes input on the IDRS terminal into different Stop Reason Codes used by BFS (formerly FMS) for their processing. The only code not converted is "D" , which BFS uses to designate all IRS claims other than substitute checks.
|INPUT CC CHKCL||CONDITIONS||GENERATED AT BFS||RESULTING ACTION|
|" C"|| ||" L"||Used mostly by Criminal Investigation Division (CID) and some taxpayers for spousal disputes in court. Certified copy of paid refund check.|
|" D"||Claim on destroyed check unendorsed.||" D"||No "P-" Freeze set.|
|" E"||Taxpayer received and endorsed check, then it was lost, stolen, or destroyed.||" D"||No "P-" Freeze set.|
|" H"||Non-receipt, destroyed, lost, or stolen and unendorsed. No automatic reissuance of refund.||" D"||" P-" Freeze Set.|
|" L"||Taxpayer received and lost check without endorsing it.||" D"||No "P-" Freeze set.|
|" N"||Taxpayer did not receive check.||" D"||No "P-" Freeze set.|
|" N"||Taxpayer did not receive direct deposit||"B"||No P- Freeze set.|
|" P"||Photocopy of check needed for administrative purposes or to resolve taxpayer conflicts or Limited Payability (LP).||" K"||Photocopy of check only.|
|" S"||Taxpayer received check and it was stolen without being endorsed by the taxpayer.||" D"||No "P-" Freeze set|
|" X"||Endorsed check; no automatic reissuance of refund.||" D"||" P-" Freeze Set.|
(1) The Disposition Code can be located in the Activity Field of the IDRS Control History. The Disposition Code is displayed as the first 2 digits of the Activity Code followed by the date BFS (formerly FMS) provided the Disposition in YYYYMMDD format (i.e., 0120130324 = Disposition 01 provided by BFS on March 24, 2013.
Additional disposition code 11 information can be found in IRM 220.127.116.11.4.1, Subsequent Inquiries, With Status Codes, Without Prior Forgery Determination (CSR’s and Refund Inquiry Unit, and Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL Claims Only.
|Code||Definition||Actions and Time Frames|
|01||RFC has requested the status of check from the Financial Processing Division.||If there is no indication the check was cashed and no action after 28 days from the status 01 date, send an e-4442, Inquiry Referral, to your local Accounts Management Center Refund Inquiry function.|
|04||Claim was previously processed as an available check cancellation. Check was sent, but returned as undeliverable or cancelled.||Taxpayer should receive check within six weeks.|
|07||Unprocessable claim.||If no other action indicated: |
|08||For Direct Deposit Refunds - No response from the Direct Deposit designated financial institution. The subsequent CC CHKCL input generates an FMS Form 150.1 to the bank. Input when the taxpayer indicates that they have not received the requested information from the initial trace and it’s been more than 90 days. Verify taxpayer has NOT received the FMS Form 150.1 copy.|| |
|09||For Direct Deposit Refunds - The RFC contacts the financial institution via FMS Form 150.1 to trace the refund. Copies of the results are sent to RFC. RFC will load an electronic copy of the FMS Form 150.1 to TCIS.|| |
|11||Check has been cashed. The taxpayer must contact the BFS Check Claims Branch at the toll-free number (800) 826-9434 (English and Spanish speaking assistance is available on the Check Claims toll free number). The TP needs to inquire about the status of the Form FMS 1133, after it has been returned to the Bureau of Check Claims.||Provide the taxpayer with check number, symbol and refund date, all are available on IMFOL#. |
|27||Check was previously processed as Limited Payability Check Cancellation. Check was issued but was not cashed within one year from the date of issue. The refund credit (TC 740) was returned by the RFC.||Taxpayer should receive check within six weeks.|
|32||Check cancelled - new check to be issued.||Taxpayer should receive refund within 4 weeks.|
|65||TOP offset of refund. The initial disposition code indicates the refund was associated with a "TOP offset" . Subsequent disposition codes will follow.||Review the taxpayer's account to determine if refund was offset in full. Explain the offset to the taxpayer and have them contact BFS TOP Call Center or the creditor agency per IRM 21.4.6, Refund Offset. For contact number and hours to call center, access link BFS.|
|71||Full TOP offset.||Advise the taxpayer to contact BFS TOP Call Center. See IRM 21.4.6, Refund Offset, for more information. For contact number and hours to call center, access link BFS.|
|72||TOP offset - Unavailable Check Cancellation (UCC). This code is passed for non-receipt claims when only the amount of the partial payment issued as a result of an offset being returned.||The offset is not reversed. Generates a TC 841 and is the equivalent of a "Code 09" which generates a "DLN with Block 88888" . Follow procedures under Code “09” Then section (3) above.|
The following category codes are associated with the Refund Trace Program:
Additional category code information can be found in Exhibit 21.4.2-2, Disposition Code Chart Non-Receipt Claims CHKCL Claims Only.
|Category||Definition||How Updated||When Updated||Age Criteria|
|RFIQ||Correspondence received regarding a refund.||CC ACTON.||When controlled.||Asterisk appears 45 days from received date. |
|3911||Form 3911, Taxpayer Statement Regarding Refund, or oral statement received regarding a refund.||CC ACTON||When case controlled.||Asterisk appears 30 days from received date. |
|RCTF||CC CHKCL input for check claim.||Computer generated.||CC CHKCL is input.||Asterisk appears 30 days from action date. |
|RFCK||CC CHKCL input for photocopy request (including LP trace).||Computer generated.||CC CHKCL is input.||Asterisk appears 30 days from action date. |
|OOPS||CC CHKCL claim or photocopy request rejected by RFC, as indicated by "Reject Disposition Code" , corrective action required.||Computer generated.||When reject received from RFC.||Asterisk appears 14 days from action date. |
|ACKN||Claim or photocopy request processed by RFC to TCIS by "Disposition Code 01 or 2" .||Computer generated.||When "Disposition Code" is received from RFC.||Asterisk appears 30 days from action date. |
|ST32||Check is outstanding.||Computer generated.||When Status Code "32" received from RFC.||Asterisk appears 45 days from action date. |
|841P||TC 841 posts and sets "P-" Freeze.||Computer generated.||When TC 841 posts.||Asterisk appears 14 days from action date. |
|PAID|| ||Computer generated.||When Disposition Notice received.||Asterisk appears 30 days from action date for checks and direct deposits. |
If case has already been updated to "Category Code 3858" because the claims package came before the "Status 11" etc. and has already been mailed to the taxpayer, the computer will not change the "Category Code PAID" . The case will remain in "Category 3858" to reflect the true status of the case.
|DDPD||Direct Deposit verified and FMS Form 150.1 to generate at RFC, as indicated by Status 09.||Computer generated.||When Disposition Notice received.||Asterisk appears 90 days from action date.|
|3858|| ||CC ACTON||When items are mailed to the taxpayer.||Asterisk appears 45 days from action date. |
|TOAD||Completed Form FMS 1133 and check copy sent to BFS for adjudication.||CC ACTON||When items are mailed to BFS Philadelphia, PA.||Asterisk appears 90 days from action date. |
|3859||FMS 3859, Claims Disposition Notice, (or computer generated version) received from BFS in Philadelphia, PA.||CC ACTON||When Disposition Notice received.||Asterisk appears 14 days from action date. |
|RECL||TC 841 to post from "Account 6565" .||CC ACTON||When case submitted to the Accounting function.||Asterisk appears 180 days from action date. |
|1081||Reclamation Credit received from BFS.||CC ACTON||When 1081 "TRACS" listing received.||Asterisk appears 30 days from action date. |