21.5.7 Payment Tracers

Manual Transmittal

August 15, 2018

Purpose

(1) This transmits revised IRM 21.5.7, Account Resolution, Payment Tracers.

Material Changes

(1) Editorial changes were made throughout IRM 21.5.7.

(2) IRM 21.5.7.3(1) - Removed information about IAT TC Search tool.

(3) IRM 21.5.7.3.1(9) Note - Added information about researching RTR system.

(4) IRM 21.5.7.3.2.1(4)(a) - Added note to clarify that instructions pertain to Form 1040 series.

(5) IRM 21.5.7.3.2.2 - If the spousal payment is located by the employee before the TC 594 cc 84 has posted to the module the toll-free employee needs to manually transfer the payment to the primary account.

(6) IRM 21.5.7.3.4 - Added a time frame for locating a payment left attached to a return

(7) IPU 17U1638 issued 11-30-2018 IRM 21.5.7.3.7 - Added (5) which includes a link for communicating information to the Error Resolution System (ERS).

(8) IPU 17U1638 issued 11-30-2018 IRM 21.5.7.3.9 - Added instructions for when a taxpayer filed an electronic return and then sent in a check for the balance due and the check was not processed or posted to the account.

(9) IPU 17U1638 issued 11-30-2018 IRM 21.5.7.4.7.7 - Added clarification regarding Indemnity Agreements.

(10) IPU 17U1638 issued 11-30-2018 IRM 21.5.7.4.7.8 - Added clarification regarding Indemnity Agreements.

(11) IPU 17U1638 issued 11-30-2018 IRM 21.5.7.4.7.14.1 - Added a note when researching unidentified do not use the first two digits of the EFT number.

Effect on Other Documents

IRM 21.5.7 dated September 12, 2017 (effective October 1, 2017) is superseded. This IRM incorporates IRM Procedural Update (IPU) 17U1638 (issued 11/30/2017).

Audience

All employees performing account work in Wage and Investment, Small Business/Self-Employed, Appeals, and Tax Exempt/Government Entities.

Effective Date

(10-01-2018)

Karen A. Michaels
Director, Accounts Management
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: This section provides information on payment tracers. Payments not applied to the proper tax module may cause erroneous notices or refunds. This section provides procedures for researching and resolving missing and misapplied payments.

  2. Audience: The primary users of the IRM are all IRS employees in Business Operating Divisions (BODs) who are in contact with taxpayers by telephone, correspondence, or in person.

  3. Policy Owner: The Director of Accounts Management

  4. Program Owner: Process and Program Management, Accounts Management, Wage and Investment (WI)

  5. Primary Stakeholders: The primary stakeholders are organizations with whom Accounts Management collaborates (e.g., Return Integrity & Compliance Services (RICS) and Submission Processing).

  6. Program Goals: Program goals for this type of work are included in the Accounts Management Program Letter as well as IRM 1.4.16, Accounts Management Guide for Managers.

Background

  1. Taxpayers may resolve missing/misapplied payment issues and check payment status through Direct Pay (at irs.gov), written correspondence, phone contact with a Customer Service Representative (CSR), Taxpayer Resolution Representative (TRR), or a Taxpayer Assistance Center (TAC) visit.

  2. All Customer Service Representatives, including Automated Collection System (ACS), Campus Collection Operations, and TAC, are responsible for researching and resolving payment tracer inquiries.

  3. This section provides procedures for:

    • locating missing payments

    • deciding who works payment tracer cases needing various levels of research

  4. For Hardcore Payment Tracer Function (HCPTF) procedures, refer to IRM 3.17.5, Hardcore Payment Tracers.

Authority

  1. Refer to IRM 1.2.21, Policy Statements for Customer Account Services Activities, for information

Responsibilities

  1. The Wage and Investment Commissioner has overall responsibility for the policy related to this IRM, which is published on a yearly basis.

  2. Additional information is found in IRM 1.1.13.9.4, Accounts Management and IRM 21.1.1, Accounts Management and Compliance Services Overview

Program Controls

  1. 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 listings, please refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be viewed by accessing Control Data Analysis, Project PCD, on the Control-D/Web Access server, which has a login program control.

  2. Program Effectiveness: Program Effectiveness is determined by Accounts Management’s employees successfully using IRM guidance to perform necessary account actions and duties.

  3. Program Controls: Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement are 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.

Acronyms

  1. For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.

Related Resources

  1. Refer to IRM 1.4.2.1.8, Related Resources, for information on related resources that impact internal controls.

  2. The IRS adopted the Taxpayer Bill of Rights in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803)a)(3); and for additional information about the Taxpayer Bill of Rights, see Pub 1Your Rights as a Taxpayer.

  3. Additional related resources include:

    • Integrated Automation Technologies (IAT) Tool Instructions

    • Document 6209 (IRS Processing Codes and Information)

What Is a Payment Tracer

  1. A payment tracer is the process used to locate a missing or misapplied payment. A missing payment is one that cannot be found on the taxpayer's account. A payment tracer case is not resolved until the missing or misapplied payment is correctly applied to a taxpayer's account.

Missing Payments Research

  1. Various research tools can help find missing payments as described in the paragraphs below. Use of the Integrated Automation Technologies (IAT) tools such as the TC (Transaction Code) Search Tool is highly recommended. refer to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools, for additional information.

  2. Before disclosing any tax information:

    1. Be sure you are speaking with the taxpayer or the taxpayer's authorized representative. Refer to IRM 21.1.3.2, General Disclosure Guidelines, for more information.

    2. Review procedures in IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail, before leaving a message on the taxpayer's answering machine or voice mail.

    3. Review procedures in IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX) and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information, before faxing confidential information to the taxpayer.

  3. Before conducting research to locate the payment, determine if it has been at least two weeks since the taxpayer mailed their payment or one week since the scheduled date of an authorized electronic payment. If not, ask the taxpayer to call back at that time. Otherwise obtain the following as applicable:

    • Evidence of payment (e.g., copy of cancelled check, front and back)

    • Date payment cleared

    • Taxpayer name and address

    • Taxpayer Identification Number (TIN)

    • Date of payment

    • Amount of payment

    • Tax period payment intended for

    • Where payment was sent or delivered (if mailed)

    • Type of payment (e.g., check, money order, Debit/Credit card, electronic payment)

    • Encoding information (e.g., check or money order)

    • Direct Pay or Debit/Credit Card Payment, confirmation number

    • Electronic Federal Tax Payment System (EFTPS) 15-digit EFT number

    • Routing number for financial institution on which the check was drawn

    • Credit Card Payment, confirmation number

    Note:

    To alleviate taxpayer burden, every attempt should be made to resolve the missing payment through internal research, including using the Remittance Transaction Research (RTR) system, before requesting any documentation from the taxpayer.
    If the payment information cannot be located through internal research, determine if the documentation can be faxed while you are on the telephone with the taxpayer.
    If the taxpayer can fax the information, provide them with your fax number. Enterprise Electronic Fax (EEFax), when available, must be used in lieu of manual faxing.
    If the taxpayer cannot provide a copy of the documentation (in person or by fax), advise the caller they can either call back when they can fax the documentation or they can send a copy of the documentation to the appropriate campus that processes their payments.

    Note:

    Effective October 28, 2004, the "Check Clearing for the 21st Century Act" or "Check 21," is a federal law passed by the U. S. Government. A "substitute check" is the legal equivalent of the original check and must be processed as if it were the original. Background: Not all banks have the equipment needed to accept electronic payment files and "Check 21" overcomes this obstacle. The truncating bank (which may be any bank in the check collection process) electronically transmits an image of the front and back (including endorsements) of the original check and the recipient bank converts the information into a new form of paper instrument, known as a "substitute check." A substitute check is the same size as the original and is designed to be processed in a bank’s sorting equipment just as though it were the original check and may be returned to the payer with the monthly bank statements. The check’s legend states "This is a legal copy of your check. You can use it the same way you would use the original check."

  4. Additional information and research may be needed. Research criteria may be different depending on the type of payment. Refer to specific type of payment procedures listed in IRM 21.5.7.4.7, Payment Methods/Systems.

    Note:

    Contact the taxpayer via telephone or fax for information needed to resolve the case. If unable to reach taxpayer via telephone or fax (at least two attempts), use the appropriate "C letter."

  5. All functions work the initial phase of a payment tracer case. If a transferable payment is found, follow the credit transfer procedures in IRM 21.5.8, Credit Transfers.

  6. If you cannot locate the payment, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) as indicated below:

    If Payment Processed at: Then Route to:
    Andover or Fresno Fresno HPTF
    Atlanta or Kansas City Kansas City HPTF
    Austin Austin HPTF
    Brookhaven, Cincinnati or Memphis Cincinnati HPTF
    Ogden or Philadelphia Ogden HPTF



    HPTF is usually located in the Accounting Control/Services Operation. Hardcore Payment Tracer addresses, telephone numbers, and fax numbers can be found by accessing Servicewide Electronic Research Program (SERP) under the Who/Where tab under the title Hardcore Payment Tracer Addresses.
    Follow procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), to refer payment tracers.

  7. The system used to process a payment determines the research method needed. Endorsement (encoder) information on the copy of the remittance will establish an audit trail. From the endorsement/encoder information, you can reconstruct the Document Locator Number (DLN) assigned to the remittance and/or Remittance Processing System Identification (RPSID) number of the electronic voucher batch number.

  8. Request a manual lien release (TC 582, lien indicator) in the following situations:

    • The lien will not systemically release

    • The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days

    • It has been more than 30 days since the account was fully satisfied

    For manual lien releases refer to IRM 5.12.3, Lien Release and Related Topics, for additional information. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Operation (CLO). Contact information for the CLO can be found at ″Centralized Lien Operation (CLO) Contacts″.

Remittance Transaction Research (RTR) System

  1. The Remittance Transaction Research (RTR) system is a universal access researchable database that contains remittance processing data and images from IRS Integrated Submission and Remittance Processing (ISRP) system, and Remittance Strategy Paper Check Conversion (RS-PCC). This system permits data/image storage for up to 7 years and provides immediate retrieval of images online.

  2. RTR provides access to remittance processing data and images. The images include the front and back of the cancelled check or money order and voucher, if submitted with the payment. RTR facilitates and expedites efforts to reconcile taxpayer payments, balance daily deposits, and respond to customer service inquiries. RTR users can research the RTR database to access remittance transaction data and images, print reports, and review notes to transactions.

  3. Access to RTR is currently limited. Requests for access are made via the Online 5081 Application and must be approved by local management. Future system enhancements will allow additional user access.

  4. RTR system must be researched before requesting a copy of the cancelled check or money order from the taxpayer, if both of the following apply:

    • Access to the RTR system is available

    • The payment is an ISRP, Lockbox, or RS-PCC payment

  5. When performing a query (research) for records, to narrow your research request, it is critical to enter as much information as possible. A query initiated with minimal information may produce too many unrelated results.

  6. All Lockbox sites were online as of Dec. 31, 2003. Only payments processed by the banks after installation and programming of the RTR equipment are available.

  7. Notes can be accessed to view record changes or deletions made to either an individual record or a block of records prior to posting to Master File. For example, a payment goes unpostable after being sent through Lockbox. Notes should contain enough information to allow users to track the payment record to the point at which it posts to a taxpayer's account. Once posted, changes or movement of credits are tracked through Master File via Integrated Data Retrieval System (IDRS).

  8. Payments taken to a Field Assistance (FA) TAC office or mailed to an Accounts Management (AM) Campus Support site (Andover, Atlanta, Brookhaven, Memphis, and Philadelphia) are processed electronically through RS-PCC. RS-PCC payments came online in January 2008.

  9. RS-PCC payments are identified by the site identification number as follows:

    Site Identification Number
    Andover 08
    Atlanta 07
    Brookhaven 19
    Memphis 49
    Philadelphia 28
    FA TAC Offices 00

    Note:

    Prior to October 19, 2010, all payments processed through RS-PCC used site identification number 00. When researching the RTR system with the default 00 and no record of payment is located, use the drop-down menu for the RS-PCC area to research each site in an effort to locate the payment.

Integrated Data Retrieval System (IDRS) Research for Payment

  1. IDRS and Corporate Files On Line (CFOL) command codes are used to search for payments. Refer to Document 6209 Section 8A, Master File Codes, IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, for information on displaying and using IDRS and CFOL for additional information.

  2. Use of the IAT TC Search Tool is highly recommended. Refer to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools, for additional information. The IAT TC Search Tool allows research of payments by amount, date, and TIN. The tool is designed to assist with IDRS research and resolution.

  3. Use IDRS Command Codes (CC) NAMES and CC NAMEI to obtain a social security number (SSN) and CC NAMEE and CC NAMEB to obtain an employer identification number (EIN) information.

  4. Use the following IDRS/CFOL command codes to search for a payment:

    • CC SUMRY and CC TXMOD, for possible misapplications of the payment. They provide different master file transaction (MFT) codes for Individual Master File (IMF) and Business Master File (BMF) accounts

    • CC MFTRA

    • CC IMFOL and/or CC BMFOL

    • CC IMFOL definer code "P" displays payments within a specific date range or time period. Refer to Exhibit 2.3.51-23, Command Code IMFOL Output Display - Payment Summary, for additional information.

    • CC IMFOL definer code "Q" displays Reason Code (RC) 24 resequencing transactions. Refer to IRM 2.3.51.2 (6), Command Code IMFOL, for additional information.

    • CC INOLET and/or CC INOLEX, to check all related TINs, valid and invalid, provided by taxpayer

    • CC URINQ, to research the Unidentified Remittance File

    • CC XSINQ, to research the Excess Collections File

    • CC ERINV, to research the Error Resolution System (ERS)

    • CC ESTAB, to order microfilm transcripts, modules on retention, and to request returns, blocks of documents or other documents

    • SCFTR, to research the Service Center Control File to determine if the payment was renumbered. Refer to IRM 2.3.36.2, SCFTR Input Screen

    • UPTIN, to check open and closed unpostables for a specific TIN. Closed unpostable records remain on file 90 days for display

    • CC TXMOD, CC SUMRY, and CC ENMOD with definer "N" after the TIN for ANMF tax modules and entity information

    • CC INOLE, to research entity information

    • CC EFTPS, to display electronic payment information

    Reminder:

    Document 6209 Section 8A, Master File Codes, can be used to help read the IDRS/CFOL screens.

  5. Research CFOL command codes (CC) for payments if IDRS is not available or if "No Data" on IDRS. CFOL will also show the MFT codes (e.g. MFT 31 for IMF accounts).

    If Then
    The payment caused a credit balance on the MFT 31 and there is an open control. Refer the case to the employee with the open control.
    The payment caused a credit balance on the MFT 31 and there is an open control to a clerical team. If trained in working MFT 31 transcripts/cases refer to IRM 21.6.8.9.2, REFMFT31 / REFMFT65 Transcripts, for procedures. If not trained, refer to your campus' Accounts Maintenance function.
    The payment did not cause a credit balance on the MFT 31. Refer to IRM 21.6.8.8.2, Adjusting Accounts, to determine if additional actions are required.
    The payment is being transferred to an MFT 31 account. Refer to IRM 21.6.8.8.2, Adjusting Accounts, to determine if additional actions are required.
  6. Payments post and can be reversed on the Master File. Refer to Exhibit 21.5.8-1, Transaction Codes and Reversals, for additional information.

    Note:

    A TC 976 or TC 977 will post with a credit amount if the taxpayer submits a payment with an amended return.

  7. When researching for payments, check the module the payment was intended for to determine if the deposit was applied and then transferred to another module or account. Computer Condition Code (CCC) E on an employment tax return indicates the taxpayer requested to credit elect all or part of an overpayment. Missing payments may be included in a credit elect amount located on a subsequent module. See Document 6209 Section 3.5, Tax Return Information - Computer Condition Codes, for additional information on CCCs.

  8. A rollover to a credit module, (indicated on IDRS by the presence of MFT 01 and the tax period 000000) occurs automatically when more credits are posted than claimed on the return. A single excess credit/payment may be systemically transferred, if a return has not posted for the subsequent tax period. The reversed credit will show R following the transaction code, with P following the DLN. The gaining module will show the same microfilm serial number, with A following the DLN. The 9th and 10th digits of the DLN will be 99.

  9. Always research the account thoroughly. If you locate an EFTPS payment for $0.00 with the same date of the payment you are looking for, research CC BMFOL for another TC 650 for .00 (it will have the same payment date and EFTPS tracer number), the TC 650 for .00 will roll forward to the next tax period until it finds an account that either has a balance due or an account without a posted TC 150. If the payment is located, transfer the payment to the correct account.

  10. A rollback happens when more credits are claimed on the return than are present in the module. If the return has not posted for the subsequent tax period, a single credit/payment, equaling the difference, may be transferred back to the prior module. The same identifying data, R and P, indicate a rollback. A rollback can occur between a Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and Form 941, Employer’s Quarterly Tax Return

Resequencing TC 610 Payments Located Through CC IMFOLQ
  1. When a payment attempts to post to an account as a TC 610 transaction (remittance with return) and there has been no account established, the transaction will resequence with a resequence code 24.

  2. The payment will continue to resequence if no account is established until ECC-MTC cycle 29 when the transaction will go unpostable with an unpostable code (UPC) 151.

  3. After ECC-MTC cycle 29, if a TC 610 attempts to post to an account without an established entity, it will resequence (resequence code 24) for three cycles prior to going unpostable with UPC 151.

  4. Telephone and Taxpayer Assistance Center instructions:

    1. To locate a TC 610 payment, use CC IMFOLQ with the payment amount or TIN.

      Note:

      The following instructions apply to Form 1040 series only and not to Forms 1041.

    2. If you locate a TC 610 payment, prepare a Form 4442, Inquiry Referral, select the Referral Category "IMFOLQ Payment" and then select the Accounts Management Service Center to which your site is associated. Refer to IRM 21.3.5.4.2, How to Prepare a Referral, for additional information.

    3. In the "Taxpayer Inquiry/Proposed Resolution" section of the Form 4442 indicate the account where the payment has been located under CC IMFOLQ and the taxpayer's SSN and entity information for where the payment needs to be applied.

  5. Correspondence or referral (Form 4442) instructions:

    1. To locate a TC 610 payment, use CC IMFOLQ with the payment amount or TIN.

    2. If you locate a TC 610 payment, request CC MFTRA definer U for the SSN shown on CC IMFOLQ to establish the account.

    3. Input a TC 000 using the information from the CC MFTRAU.

      Note:

      If a valid address for the individual listed on the CC MFTRAU is not available, use the IRS address of your specific site. Refer to Campus Mailing Addresses under the "Who/Where" tab on SERP for additional information.

    4. Monitor the account and once the entity has been established, transfer the payment to the correct taxpayer account.

Spousal Payments
  1. Spousal payments will be resequenced from the spouse’s account to the joint account, providing the joint account is already established and there is a debit balance tax module for that year in status 21 or greater (TC 594 cc 84 has already posted to the Secondary TIN for the module in question).

  2. The transfer of the electronic payments will be performed by utilizing TC 666/667 processing. The Julian Date of the DLN will be changed to 888 to uniquely identify the transaction as a spousal electronic payment TC 666/667.

  3. Spousal payment transfers can occur daily if the account (or accounts) qualify for daily processing. If not, the transfer will take place during weekly processing, normally on DD 05 (Thursday). These transfer attempts will only happen at the time the payment posts; there is no ongoing sweep of the e-payments for systemic transfers.

  4. Additional information is available in IRM 5.19.10.5.10, Verify Payment (VERPYMT) and Electronic Spousal Payment (ELECSPPAY) Transcripts.

  5. Toll-free assistors should transfer the credit manually per existing protocols if an e-payment TC 670 posts to the spouse’s SSN before the TC 594 cc 84 has posted to the module.

Requesting Documents Through IDRS

  1. All functions working payment tracer cases are responsible for requesting tax returns, documents, records, blocks, etc. in order to resolve the case.

  2. For payments made prior to the implementation of the Residual Remittance Processing System (RRPS) in 1999, command code ESTAB can be used to request a single document or entire block using the payment DLN. The payment DLN can be obtained from the remittance or from IDRS/CFOL next to the payment. All campuses implemented RRPS during 1999. The major change with the implementation of RRPS is the elimination of the DLN on the payment posting documents. If a payment posts as a TC 610, do not request the document. There will not be a payment posting voucher in Files. For more information on RRPS payment documents and requesting archived images of the payment document or checks, follow procedures in IRM 21.5.7.4.7.1, Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS).

  3. Research the entire block for the payment document.

  4. For information on Lockbox payment documents, follow procedures in IRM 21.5.7.4.7.4, Lockbox Payments.

Remittance Left Attached to the Return

  1. Consider the following if the taxpayer states the remittance was submitted with the tax return:

    If And Then
    The taxpayer HAS NOT issued a replacement check HAS NOT stopped payment
    1. Prepare and fax Form 2275, Records Request, Charge and Recharge, to the appropriate campus files area. Refer to IRM 3.5.61.6, Document Requests - Forms Used to Request Returns/Documents, for additional information on completing the Form 2275. The Remarks field should include a statement like the following: Please search through the entire document for a payment. If found, submit the payment for processing using the received date of the return. Please reply by fax or telephone if a payment was, or was not attached. Remember to include your name, telephone and fax number, DLN of the return, and payment amount. The campus fax numbers are located on the SERP home page under the Who/Where tab under the title. Files Contact Listing (the former IAP). The fax numbers are generally located in the Special Search section for each campus.

    2. advise the taxpayer this process could take two to six weeks to locate the check, depending upon where the taxpayer’s return is located within our files systems.

    Exception:

    AM remote call sites and TAC personnel do not prepare Form 2275, nor do they input CC ESTAB, for documents. Complete Form 4442/e4442, Inquiry Referral, and route to the Campus AM paper function within your directorate. Indicate the following on Form 4442/e4442: Document must be searched in Files to look for the remittance. Include all information available/obtained from the taxpayer (i.e., name, TIN, amount, date of payment, etc.). The Form 4442/e4442 can be used in this situation because the request is staying within AM and it is not a referral to another area for a payment tracer or hardcore payment tracer.

    The search process is complete the check was found Advise the taxpayer the check was found and it will be processed using the received date of the return.
    The search process is complete the check was not found Advise the taxpayer the check was not found and request payment.
    The taxpayer HAS NOT issued a replacement check HAS stopped payment Encourage the taxpayer to use IRS Direct Pay to submit payment. Refer to IRM 21.2.1.48.1, IRS Direct Pay, for additional information. If unable to use IRS Direct Pay, advise the taxpayer to submit payment with correspondence and an explanation. Continue processing according to details shown below for "HAS issued a replacement check."
    The taxpayer HAS issued a replacement check HAS/HAS NOT stopped payment Use CC ESTAB to request the original return from Files. CIS sites must use Document Request Code "O" (alpha O) to request the original return. Search through the entire return and envelope for the uncashed remittance.

    Exception:

    AM remote call sites and TAC personnel do not prepare Form 2275, nor do they input CC ESTAB, for documents. Complete Form 4442/e4442, Inquiry Referral, and route to the Campus AM paper function within your directorate. Indicate the following on Form 4442/e4442: Document must be searched in Files to look for the remittance. Include all information available/obtained from the taxpayer (i.e., name, TIN, amount, date of payment, etc.). The Form 4442/e4442 can be used in this situation because the request is staying within AM and it is not a referral to another area for a payment tracer or hardcore payment tracer.

    The original return is received the check is found Change the date of the subsequent payment to the date of the original payment. Write VOID on the original check and return it to the taxpayer with an apology letter. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges.
    The original return is received the check is NOT Found A managerial decision must be made to change the date of the subsequent payment to the date of the original payment. Send an apology letter to the taxpayer. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges.
  2. For Electronic Filing (ELF) Returns, if the taxpayer states that the check was attached to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, refer to the procedures in IRM 21.6.6.4.26(5), Electronic Filing System (e-file), to request Form 8453. If you are staffing the AM toll-free telephone lines, follow the exceptions in (1) above.

  3. Request a manual lien release (TC 582, lien indicator) in the following situations:

    • The lien will not systemically release

    • The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days

    • It has been more than 30 days since the account was fully satisfied

    Refer to the procedures in IRM 5.12.3.3.1(5), Liability is Satisfied, for manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Operation (CLO). Contact information for the CLO can be found by selecting ″Centralized Lien Operation (CLO) Contacts″.

Researching Unidentified Remittances and Excess Collection File

  1. Payments less than one year old which could not be applied to specific taxpayers and/or tax periods are moved to the Unidentified Remittance File (URF). Research the URF, Account 4620, using IDRS CC URINQ. Refer to the procedures in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Payments more than one year old which could not be applied can be researched in the Excess Collection File (XSF), Account 6800, using CC XSINQ. Refer to the procedures in IRM 3.17.220, Excess Collections File.

    Note:

    Accounts with credits moved to the URF or XSF should show a TC 971 AC 296 posted to IDRS on the module payment/credit posted to. This indicates all research of the primary and related TINs was completed prior to the transfer into the URF or XSF.

  2. Research URF using CC URINQ or XSF using CC XSINQ by the:

    • Amount of remittance

    • Name control

    • DLN

  3. When payments are found in these accounts:

    1. Prepare Form 8765, IDRS Control File Credit Application. Refer to IRM 21.5.7.4.4.2, Form 8765, IDRS Control File Credit Application, for additional information.

    2. Route the form and supporting evidence to the unidentified remittance/excess collection function in the Accounting Control/Services Operation at the campus that applied the funds to URF/XSF. The Campus can be identified by the first two digits of the Credit Reversal DLN.

    3. Notify taxpayer the payment has been found.

    4. Release TC 470, if applicable.

      Reminder:

      Credits must be cleared by the Statute function, if applicable.

Researching Unpostable Payments

  1. The transactions that fail validity checks (a system of checks-and-balances applied by the computer) and cannot post to master file are referred to as "unpostables" . Each unpostable is assigned a 3 digit unpostable code which identifies the reason or condition that prevented the transaction from posting. Unpostable codes will also have a 1 digit reason code. Unpostable payments appear as UPnnn on CC TXMOD. These cases should NOT be sent to the Hardcore Payment Tracer Function (HPTF). Research unpostable payments on IDRS using the following commands:

    • CC UPTIN - displays all open and closed unpostables for a specific TIN.

    • CC UPDIS - displays details for a specific sequence number; upon entering CC UPDIS, CC UPRES is generated.

  2. When you locate a payment in open unpostables use CC UPCAS with Definer "Z" to input the payment information to resolve the unpostable condition. The Unpostable function will make the correction(s) based on this information.

  3. Close the payment tracer case and notify the taxpayer. Follow procedures in IRM 21.5.5.3.3, Responding to Taxpayer Inquiries on an Open Unpostable, for a time frame to provide the taxpayer.

  4. Follow procedures in IRM 21.5.5.3.4, Responding to Taxpayer Inquiries on a Closed Unpostable, for a time frame to provide to the taxpayer.

  5. See IRM 21.5.5, Unpostables, and Document 6209, Section 8B Master File Codes - Unpostables and Resequence, for more information on unpostables.

Researching Error Resolution Conditions

  1. When documents are rejected from normal processing because of incomplete or incorrect information, they fall out to the Error Resolution System (ERS). ERS is used to correct these documents.

  2. To determine if a return/document is in ERS, access the ERS Control File using CC ERINV. Enter ERINV followed by a space and any of the following:

    • The primary TIN (no hyphens)

    • The complete 14 digit DLN (with hyphens)

    • The Block DLN with XX in place of the serial number (with hyphens)

     

    Example:


    Research CC ERINV by TIN − ERINV XXXXXXXXX − Enter/XMIT key (no hyphens)
    Research CC ERINV by DLN − ERINV XXXXX-XXX-XXXXX-X − Enter/XMIT key (hyphens)

  3. CC ERINV provides the ERS status code. These codes identify if the item is workable, unworkable, in suspense or if the document has been referred to another area. Refer to Exhibit 3.12.37-21, ERS Status Codes, for IMF and Exhibit 3.12.38-3, ERS Status Codes (Inventory), for BMF.

  4. If you locate the missing payment after researching CC ERINV, close the payment tracer case and notify the taxpayer.

  5. To convey information to ERS, submit a Form 4442, Inquiry Referral, to ERS. Refer to IRM 21.4.1.4.1.2.4(2), Error Resolution System (ERS) Status Codes, for the fax/eFax numbers.

Researching Reject Registers

  1. A reject sequence number in IDRS indicates if there is a reject transaction on the taxpayer's account. The reject transaction has no effect on the IDRS balance.

  2. An alpha reject sequence code appears on IDRS:

    • C - Resolved transaction no longer on the ERS Suspense Files - Closed Case

    • O - Transaction is still on the Generalized Mainframe Framework (GMF) Reject or ERS Inventory Files - Open Case

    • S - Transaction is open on the ERS Suspense Files - Open Case

  3. Notate the reject sequence number on Form 4446, Payment Tracer Research Record, and send to the Hardcore Payment Tracer Function (HPTF). Refer to IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information.

Lost Payment for Electronically Filed (ELF) Returns

  1. Consider the following if the taxpayer states they filed their return electronically and then sent in a remittance and the payment has not been processed and posted to the taxpayer’s account:

    If And Then
    The taxpayer HAS NOT issued a replacement check HAS/HAS NOT stopped payment
    1. Encourage the taxpayer to use IRS Direct Pay to submit payment. Refer to IRM 21.2.1.48.1, IRS Direct Pay, for additional information.

    2. If unable to use IRS Direct Pay, advise the taxpayer to submit payment with correspondence, an explanation and proof of original payment.

    3. A managerial decision must be made to change the date of the subsequent payment to the date the taxpayer claims the original payment was made. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges.

    The taxpayer HAS issued a replacement check HAS/HAS NOT stopped payment A managerial decision must be made to change the date of the subsequent payment to the date the taxpayer claims the original payment was made. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges.

Resolving Missing Payments Procedures

  1. Payments are identified by Campus, Lockbox, Field Processing methods or Bank Endorsements. The different types of methods and systems used to make and record payments are:

    • Cashier’s Checks

    • Cash Payments

    • Criminal restitution payments made to the clerk of court office, AKA Court-ordered Restitution Payments

    • Direct Debit Installment Agreements

    • Electronic Federal Tax Payment System (EFTPS)

    • Electronic Funds Withdrawal

    • Federal Tax Deposits

    • Free Items

    • Field Office Remittances

    • Foreign Remittances

    • Integrated Submission and Remittance Processing System (ISRP)

    • Lockbox Payments

    • Justice Department Lockbox Receipts

    • Installment Agreement User Fee Lockbox Payments

    • Manual Deposits

    • Money Orders

    • Non-Master File Payments

    • Payments for Lloyd’s of London Taxpayer

    • Payments Made by Credit Cards

    • Remittance Strategy Paper Check Conversion (RS-PCC)

    • Remittance Transaction Research (RTR) System

    • Residual Remittance Processing System (RRPS)

    • Service Center Recognition Image Processing System (SCRIPS)

    • State Income Tax Levy Program Payments (SITLP)

    • Treasury Bonds

    • Truncated checks

  2. When a payment is received via EFTPS and the taxpayer does not have the Electronic Funds Transfer (EFT) number, follow procedures in IRM 21.5.7.4.7.14, Electronic Federal Tax Payment System (EFTPS). The taxpayer may check their own EFTPS payment history by accessing https://www.eftps.gov/eftps/.

  3. When a payment is processed via RS-PCC and posted to master-file through EFPPS, the taxpayer will not have an EFT number. Follow the procedures in IRM 21.5.7.4.7.15, Remittance Strategy Paper Check Conversion (RS-PCC).

  4. If the taxpayer indicates a payment was attached to the tax return but has not cleared the bank, follow procedures in IRM 21.5.7.3.4, Remittance Left Attached to the Return.

  5. If a payment has posted to the wrong account and must be transferred, follow procedures in IRM 21.5.8, Credit Transfers.

  6. Research all accounts completely to resolve a payment tracer inquiry. Only prepare a referral e.g., Form 4446, Payment Tracer Research Record, after all research is complete and the payments cannot be located.

  7. Notify taxpayer when you locate the payment. Follow procedures in IRM 21.5.7.4.5, Letters and Notices.

Delay Notices and Offsets

  1. Any employee working a payment tracer case is responsible for delaying notices and/or refund offsets.

  2. Use CC STAUP to update an account in IDRS notice status. This command code generates a history item and converts the module to status 48. All balance due notices will be suppressed, except the first notice. Contact the Notice Review function if a notice must be stopped.

  3. TC 470 suspends all IDRS notices and offsets for 15 weeks. Use TC 470 if taxpayer files a claim or CC STAUP cannot be used. Refer to IRM 21.5.6.4.45, W- Freeze, for additional information on delaying offsets.

Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF)

  1. If the missing payment cannot be found by performing the preliminary research listed in (2) below, then:

    • Prepare Form 4446, Payment Tracer Research Record

    • Document all research

    • Fax/mail to the campus HPTF that processed the payment, or the most recent payments (if unable to determine who processed the missing payment)

    Reminder:

    Payments do not post during the dead cycles. Do not complete HPTF referrals until after performing preliminary research and the dead cycles have passed.

  2. Indicate on the Form 4446 preliminary research including:

    • Use of the IAT TC Search Tool is highly recommended. Refer to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools.

    • Documentation of IDRS and CFOL research, including CC IMFOL, CC BMFOL, CC URINQ, CC XSINQ, CC UPTIN, CC SCFTR, and Automated Non-Master File (ANMF) research. Refer to IRM 21.5.7.4.7.11, Automated Non-Master File (ANMF) Payments, for additional information on ANMF payments.

    • RTR, EFTPS, and unpostables research if applicable.

    • Documentation of any additional information obtained by phone or fax to resolve the case.

  3. Prepare Form 4446, Payment Tracer Research Record. Enterprise Electronic Fax (EEfax) must be used when available, instead of manual faxing or interoffice mail.

    Note:

    When completing Form 4446, you are required to enter your employee IDRS number. DO NOT enter your IRS Badge Number.

  4. Attach any supporting documentation to the Form 4446, including the following, if applicable:

    • A copy of the front and back of the taxpayer's cancelled remittance

    • Taxpayer's bank statements

    • Copy of the payment posting document, Form 813, Document Register, if a potential mixed/slipped block condition is discovered; this is also needed for encoding errors

  5. Print your CIS case, prepare a CIS routing slip if EEfax is not available, and attach the Form 4446. Close the control through CIS/AMS.

    Note:

    Refer to Hardcore Payment Tracer Addresses on the Who/Where tab on the SERP home page for additional information when completing the routing slip.

    Note:

    All EFTPS Hardcore Payment Tracers (HCPT) are processed by the Ogden Service Center. When preparing the Form 4446, be sure to include the EFTPS 15-digit tracking number that begins with a "2" , a confirmation number, or a IMaDD number. The CIS routing slip should be directed to: Internal Revenue Service, Ogden Submission Processing Center, Payment Correction Team 37302, M/S 6264, P.O. Box 9941, Ogden, UT 84409.

  6. If working a telephone inquiry:

    • Prepare Form 4446 after documenting all research performed

    • Attach any faxed documentation

    • Refer to HPTF at the campus that processed the payment or processed the most recent payments if unable to determine who processed the missing payment

    • For addresses and mail stops of the HPTFs in each campus, refer to Hardcore Payment Tracer Addresses on the Who/Where tab on SERP.

  7. Ensure the Form 4446 is complete and includes the taxpayer's name, TIN, and phone number (include the phone number in the Preliminary Research section of the Form 4446.). HPTF may return incomplete, or illegible Form 4446 for additional research or information. HPTF should not reject Form 4446 if the site does not have access to the information. Managerial review should ensure that all available preliminary research was completed.

  8. Place a closed control on the IDRS module indicating "44462HPTF" using "PAYT" as the category code. HPTF will open a new control when they receive the case.

  9. When referring the case to HPTF, send the taxpayer a Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, when appropriate and delay notices. Follow procedures in IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office, to determine when it is necessary to notify the taxpayer of the transfer.

  10. The HPTF located in Accounting Services/Control Operation, is responsible for working complex payment tracer cases after all preliminary research has been exhausted. Use the telephone and fax machine to obtain additional information needed to resolve the case. This will expedite the resolution process. If unable to reach taxpayer via telephone (at least two attempts), use the appropriate "C letter" . HPTF will review Form 4446 to ensure the necessary research and documentation was prepared before accepting the payment tracer case. Any incomplete case will be returned through the team manager with an explanation of the corrective action required.

    Reminder:

    Every type of payment does not require the same amount of documentation to be accepted by the HPTF.

  11. HPTF cases usually involve complex conditions such as:

    • Piggyback checks, encoding errors, and deposit discrepancies that cannot be resolved during preliminary research

    • Non-Master File (NMF) cases (tax class 6 in DLN). Refer to IRM 21.5.7.4.7.11, Automated Non-Master File (ANMF) Payments, for additional information

    • Unpostable codes 140 or 399 from the unpostable unit

    • Field office payments without a field office or RRPS endorsement

    • Closed unpostable cases

    • Slipped/Mixed entity or block conditions involving more than three taxpayer accounts. Refer to IRM 21.5.7.4.6.2, Mixed/Slipped Blocks

    • Payments over seven years old not located in the Excess Collection Files

    • Reject transactions

    • Electronic payments not located through specified research

    • Department of Justice (DOJ) Criminal Restitution Program and DOJ Lockbox Receipts processed at the Kansas City Submission Processing Center (KCSPC). Refer to KCSPC HPTF. Follow procedures in IRM 21.5.7.4.7.6, Justice Department Lockbox Receipts

    • Criminal restitution payments made to the clerk of court office

    • Form 809, Receipt for Payment of Taxes, or cash register receipt payments, after preliminary research

    • "Free" Items

    Caution:

    Only send dishonored checks to the HPTF if you have proof the check was cashed.

  12. HPTF may transfer cases to other campus HPTF, if applicable. In most situations, the case should already be in the campus that processed the payment.

  13. If a refund should be issued, HPTF will apply the tentative substantiated credit, with received date and amount indicated on the proof of payment, within 10 working days of receipt in HPTF.

  14. HPTF is responsible for all subsequent communication with taxpayer after they accept the case.

Payment Tracers with Collection Issues

  1. Payment tracer cases with collection issues should be routed per IRM 21.3.3.4.9.2, Campus Collection Function Correspondence/Inquiry/Notice.

Payment Tracer Forms

  1. Special forms are prepared for payment tracer cases. These forms are:

    • Form 4446, Payment Tracer Research Record

    • Form 8765, IDRS Control File Credit Application

    • Form 3809, Miscellaneous Adjustment Voucher (HPTF only)

    • Form 8546, Claim for Reimbursement of Bank Charges

    • Form 11357, Integrated Submission and Remittance Processing Image Retrieval Request

Form 4446, Payment Tracer Research Record
  1. Form 4446, Payment Tracer Research Record, is used to refer a payment tracer case to the Hardcore Payment Tracer Function (HPTF) after performing preliminary research and reviewing information provided by the taxpayer/bank. Refer to IRM 21.5.7.4.2 (2), Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information. Do not use Form 4442, Inquiry Referral, or Form 4159, Payment Tracer Request, for payment tracer case referrals to HPTF.

  2. Refer to IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for procedures to complete the Form 4446 and routing to HPTF.

  3. FTD cases must have a legible copy of the front and back of the cancelled payment attached to the Form 4446.

    Note:

    To determine which campus processed the FTD coupon, look at who processed the most current payments. The address of the taxpayer on the check can also lead you to the correct campus, although this is not true in all cases.

Form 8765, IDRS Control File Credit Application
  1. When the missing payment is in the Unidentified Remittance File (URF) or Excess Collection File (XSF), application of the credit cannot be made by persons outside the Unidentified/Excess Collection function. Form 8765, IDRS Control File Credit Application, is used to request Unidentified/Excess to transfer money from the URF and XSF to the taxpayer's account.

    Note:

    The Unidentified/Excess Collection function is usually located in the Accounting Control/Services Operation. Any campus Accounting Control/Services Operation can place funds in URF/XSF; however, transferring money from URF/XSF must be done by the campus that placed funds in URF/XSF. The Campus can be identified by the first two digits of the Credit Reversal DLN.


    Contact number can be found by selecting Excess Collection under the Who/Where tab on the SERP home page.

  2. The request should identify where to apply the money and supply the documentation from the taxpayer, including:

    • TIN

    • Name Control

    • Dollar amount

    • MFT

    • Tax Period Ending

    • Control Number

    • Remarks (required entry)

    • Date, name, and employee IDRS number of preparer of Form 8765 (required entries)

    Form 8765 should have documentation attached identifying the credit as well as justifying its requested application through correspondence, research performed, etc. If Form 8765 is received without this documentation or without proper completion of all required entries, the Form 8765 will be returned to the requestor immediately. If required by another IRM, ensure all specific documentation on credits of $100,000 or more are recorded on, or attached to, the Form 8765 (i.e. research for finding phone numbers, phone call attempts, managerial approval, or RTR prints).

  3. For additional information on Form 8765, refer to IRM 3.17.10.3, Unidentified Remittance File (URF), and IRM 3.17.220.2.12, Applying Amounts from the XSF--General, for additional information.

  4. For statute expired/imminent periods, refer to IRM 25.6.1.7.3.3(4), Transferring Credits From the XSF.

Form 3809, Miscellaneous Adjustment Voucher
  1. Only HPTF will prepare Form 3809, Miscellaneous Adjustment Voucher, for a TC 760, Substantiated Credit Payment Allowance, to:

    • Allow and reverse tentative substantiated credit from Account 6570

    • Allow a credit from Account 7650, Losses and Shortages

Form 8546, Claim for Reimbursement of Bank Charges
  1. IRS may reimburse taxpayers for bank charges resulting from loss or misplacement of taxpayers’ checks during processing.

  2. Taxpayers file Form 8546, Claim for Reimbursement of Bank Charges, in this situation.

    If Then
    Taxpayer requests a reimbursement of bank charges Send taxpayer a Form 8546 with taxpayer's service center return address.
    Taxpayer submits Form 8546 Send Form 8546 to Accounting.
Delays in Processing Federal Tax Deposits (FTD)
  1. Follow procedures in IRM 20.1.4.24.2, Misdated Deposits.

Letters and Notices

  1. Notify taxpayer when the payment has been located using:

    • Letter 672C, Payment(s) Located and/or Applied

    • CP 62, Notice of Credit Transfer, IMF notice generated when credits are transferred

    • CP 225, Missing Payment Applied, BMF notice generated when credits are transferred

  2. To request additional information from the taxpayer, use a Letter 167C, Payment Missing: Copy of Check/Money Order/Cashier’s Check Requested.

  3. To notify the taxpayer that the payment tracer case is being transferred to another office, use Letter 86C. See IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquire/Forms to Another Office.

  4. Refer to IRM 21.5.1.5.1(7), CIS General Guidelines, for instructions on capturing the "REQUEST COMPLETE" screen of CC LETER.

Processing Complex Payment Tracers

  1. The following subsections identify complex payment tracer cases and actions to take to locate the payments.

Encoding Errors and Piggy-Back Checks
  1. Encoding errors occur when a check is encoded for a different amount than the amount for which the check was written. Improper handling of remittances causes a discrepancy between the records of the depository bank and the campus.

  2. Piggy-back checks are two checks attached that are run through the encoding machine as one. The front check is encoded on the face only. The second check is endorsed on the back only.

  3. The taxpayer's IRS account is credited for the first check amount. The taxpayer's bank account is debited for the total of both checks. The checks may or may not be from the same taxpayer.

  4. Contact the taxpayer for a copy of the bank statement for two months, the month showing the amount deducted from the account, plus the following month. Follow e-4442/Form 4442, Inquiry Referral, procedures for required information if the information is not received by end of day, refer to IRM 21.3.5.4.2, How to Prepare a Referral. If the taxpayer submits a check for the difference, when they send a copy of the bank statement, close the case. Process the subsequent payment with the original received date.

    If Then
    Taxpayers account was not fully debited Advise taxpayer to send a payment for the difference
    Taxpayer’s account was fully debited Forward Form 4446 to HPTF. Refer to the procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information.
  5. If the encoding error is on a money order or cashier's check, advise the taxpayer to contact the vendor for a photocopy of the front and back of the money order or cashier's check.

    If Then
    The money order/cashier's check was cashed and the venders account was debited for an incorrect amount (less than the amount of the money order/cashier's check) Advise the caller to obtain the balance from the vendor and send a payment for the difference.
    The money order/cashier's check was cashed, the vendors account was debited for the correct amount, but the module credited for an incorrect amount Advise the caller to fax you a copy of the front and back of the money order/cashier's check. Provide applicable fax number and cover-sheet information.
    • Prepare Form 4446 and forward to HPTF

    • Refer to the procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information.

  6. A returned refund check will post as TC 841 if the deposit discrepancy or encoding error resulted in a refund.

    If And Then
    Credit did not belong to the taxpayer Payment is less than 1 year old Transfer payment to Account 4620, Unidentified Remittance File (URF) with Form 2424, Account Adjustment Voucher. Refer to Exhibit 3.11.10-19, Form 2424, Account Adjustment Voucher, for additional information.
    Credit did not belong to the taxpayer Payment is 1 year old or more Transfer payment to Account 6800, Excess Collection File (XSF) with Form 8758, Excess Collections File Addition. Refer to IRM 3.17.220.2.2.1, Preparation of Form 8758, for additional information.
  7. Research the following:

    1. Account 4620, Unidentified Remittances File (URF), using CC URINQ for payments encoded for less than the amount of the check, and the payments are less than one year old.

    2. Account 6800, Excess Collections File (XSF), using CC XSINQ for payments encoded for less than the amount of the check, and over one year old.

  8. For additional information on transferring payments to or moving payments from the URF or XSF file, refer to IRM 21.5.7.4.4.2, Form 8765, IDRS Control File Credit Application, IRM 3.17.10.3, Unidentified Remittance File (URF), and IRM 3.17.220, Excess Collection File, for additional information.

  9. If you cannot locate the payment, refer the case to HPTF with the following documentation attached:

    • Copy of the remittance(s)

    • IDRS print of the tax module

    • Taxpayer’s bank statements

    • Any other related documents

  10. HPTF will perform research and contact the bank for the credit.

Mixed/Slipped Blocks
  1. A mixed or slipped block condition is created if the payment documents and the Remittance Processing System (RPS) printing are out of sequence. The RPS 813 is usually correct, but the DLN and the money amount printed on the remittance and supporting documents are for the preceding taxpayer. This condition can occur at any point in the block and continue through the end of the block.

  2. If the payment DLN indicates a missing payment posted to the account of an unrelated taxpayer:

    • Request the entire block

    • Research at least five accounts before and five accounts after the taxpayer's account

    Note:

    For ISRP/RRPS blocks, refer to IRM 21.5.7.4.7.1, ISRP/RRPS, for additional information. Do not request the entire block if the payment can be researched on RTR.

Multiple/Split Remittances
  1. Multiple remittance is two or more checks received with one return/document or received for one tax period. "M" is annotated in the upper left margin of the document and remittance. The number of checks follows the "M" (e.g., M3 = 3 checks, 1 return).

  2. A split remittance is one check received for more than one return/document or for more than one tax period. "S" is annotated in the upper left margin of each document and remittance. The number of returns and/or periods follows the "S" (e.g., S2 = 2 returns, 1 check).

    Note:

    Lockbox processing will show the serial numbers on the checks. Some checks are printed with the DLN(s) of the returns.

  3. Using the date of the payment, research:

    • CC IMFOL/CC BMFOL

    • CC SUMRY/CC TXMOD/CC MFTRA

      If Then
      Total payments do not equal the multiple or split remittance
      1. Request a copy of the front and back of the check from the taxpayer, if not already provided.

      2. Request the block using CC ESTAB. For ISRP/RRPS payment, see paragraphs (4) and (5) below.

      You cannot locate the payment(s) with a copy of the check or block and all preliminary research has been completed Prepare Form 4446 and send the case to HPTF at the campus that processed the payment or processed the most recent payments if unable to determine who processed the missing payment.

    ISRP/RRPS MULTIPLE REMITTANCES: Inputting the DLN from the back of the check using CC ESTAB will allow you to secure the electronic voucher and all related checks of the multiple.

  4. ISRP/RRPS SPLIT REMITTANCES: If you request the DLN from the back of the check using CC ESTAB, you will only receive the last electronic voucher input. To secure all related vouchers from the split, the Remittance Processing System Identification (RPSID) number must be searched. For more information on ISRP/RRPS payments, refer to IRM 21.5.7.4.7.1, ISRP/RRPS.

    Example:

    If the remittance was applied to three accounts, research two RPSID and sequence numbers before and after the one on the check.

  5. HPTF will request the encoding tapes to compare the money amounts on Document 813 and validate the amount. If the tapes are unavailable, they will request copies of the check from the depository.

Refund Check to Be Applied as a Payment
  1. Taxpayers sometimes return refund checks to be applied as payments. A TC 841 must be on the tax module with a prior TC 840 or TC 846. These payments will be credited when the Service receives the refund check from the taxpayer.

    If And Then
    Credit was applied to incorrect module   Refer to IRM 21.4.3.5.1, Checks Returned to Regional Financial Center (RFC) by the Taxpayer or U.S. Postal Service and IRM 21.5.8.3, Credit Transfer Processing, for additional information.
    Credit was applied to incorrect taxpayer's account A refund was issued Follow erroneous refund procedures in IRM 21.4.5, Erroneous Refunds.
    Credit was not applied   Refer case to the Campus Accounts Management Refund Inquiry Unit.
Payment Located and Not Available for Transfer
  1. If the taxpayer's payments are applied to an incorrect tax period, transfer the payment to the correct module if the credit is still available (refund not issued).

    If Then
    Payment has been refunded Follow procedures in IRM 21.4.5, Erroneous Refunds.
    Payment will be refunded within 3 cycles (including "Q" freeze expirations) Input a refund deletion request (CC NOREF). Monitor the account and transfer credit after TC 841 posts.

    Note:

    For IMF accounts, refer to IRM 21.4.1.5.10, Refund Intercept CC NOREF with Definer "P" , for procedures on intercepting refunds. For intercepting refunds on BMF accounts and the cutoff days and time frames, refer to IRM 3.14.2.6.1 (7), Refund Intercept using CC NOREF.

  2. If the payment was applied to satisfy another tax liability take the following actions:

    If Then
    The Refund Statute Expiration Date (RSED) has expired, do not transfer or refund Refer to the procedures in IRM 25.6, Statute of Limitations.
    The taxpayer requests the payment be transferred
    • Inform the taxpayer that more interest and/or penalty may be due on the debited module.

    • After transferring the payment, tell the taxpayer how the payment was applied.

    • Request the taxpayer pay the additional interest and penalty due on the debited module.

    Note:

    If necessary, send the taxpayer a transcript indicating where the payment was applied to satisfy another tax liability.

    The payment posted to an account and created a credit status less than the payment Transfer the payment, and notify taxpayer of the balance due.
Payment Applied to a Different Taxpayer’s Account/TIN
  1. If the taxpayer's payment has been applied to an incorrect account:

    • Transfer the credit to the correct account. CP 60, Credit Reversal Adjustment Notice, Individual Master File (IMF) or CP 260, Credit Reversal Adjustment, Business Master File (BMF), generates automatically notifying the incorrect taxpayer of a balance due of more than ≡ ≡ ≡ ≡ . If balance due is less than ≡ ≡ ≡ ≡ ≡ , a TC 606 will systemically post to the account. Refer to IRM 21.5.2.4.8.3, Clearance Tolerances, for additional information.

    • Follow category D Erroneous Refund procedures if misapplied payment caused an erroneous refund. Refer to IRM 21.4.5, Erroneous Refunds, for additional information.

  2. When IMF payments are found under the secondary taxpayer's SSN on a joint return:

    • Input a credit transfer to the correct account(s)

    • Notify taxpayers of the correct SSN for future use

    • Review primary account and adjust any restricted penalties and/or interest, refer to IRM 5.1.12, Cases Requiring Special Handling, for additional information.

Payment Applied, Account Not Fully Satisfied
  1. Input CC INTST to obtain the new balance due with accrued penalties and interest if the payment does not fully pay the account. Refer to IRM 5.19.1.6.2, Can Full Pay Balance Due Now (Payoff), to compute the payoff.

    Note:

    If an installment agreement defaulted because the payment was misapplied, reinstate the installment agreement, if appropriate. Refer to the procedures in IRM 5.19.1.6.4.19, Revision/Reinstatement of IAs, for additional information.

  2. Advise taxpayer of the current balance due.

  3. Release TC 470 or enter CC STAUP, if applicable.

Altered and/or Stolen Taxpayer Payments
  1. Altered or stolen remittances mean payments that are either:

    • Endorsed or made payable to someone other than the IRS, (e.g. Payee name line changed, employee embezzlement), or

    • Have a changed amount. Refer to IRM 3.0.167.5.3, Altered Remittances, and IRM 21.3.4.7.16.1, Altered and/or Stolen Taxpayer Payments, for additional information.

  2. If the taxpayer indicates the payment was altered or stolen, request the following information:

    • Photocopy of both sides of the remittance (e.g., cancelled check, money order)

    • Home and business telephone numbers

    • If the taxpayer cannot provide a copy, such as a money order, request a copy of the customer’s receipt plus a statement that it was made payable to IRS or the Department of the Treasury.

  3. When the copy of the payment is received and/or all research has been performed:

    1. Establish an open control base using category code "SPC4" , status code A, and input TC 470 with no closing code.

    2. Monitor so that no inappropriate notices generate for the amount in question.

    3. Reinstate installment agreement if necessary. Refer to IRM 5.19.1.6.4.19(6), Revision/Reinstatement of IAs, IF/THEN table for instructions to waive the user fee.

    4. Prepare referral Form 4442/e4442, Inquiry Referral, and route entire case using Form 3210, Document Transmittal, to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations within the campus that would have processed the payment.

    5. Send a complete copy of the case, including Form 3210, Form 4442, and all research to the Remittance Security Coordinator (RSC) located in the Submission Processing Program and Analysis Staff of the campus having jurisdiction for that account. Refer to IRM 3.0.167.4.1, Remittance Security Coordinator, for additional information.

      Note:

      The RSC will ensure the control base is reassigned to HPTF (If the control base has not been reassigned after one week, contact the RSC). HPTF will receive altered/stolen payment cases from the RSC to close the originator’s control base and re-open under HPTF control. Use category SPC4.

    6. Send appropriate "C" letter to the taxpayer notifying them their case is being referred to another office for further investigation.

    7. Request a manual lien release when a lien is on the account (TC 582, lien indicator) and the altered or stolen payment will fully satisfy all outstanding liabilities. Refer to IRM 5.12.3.3.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Operation (CLO). Contact information for the CLO can be found by selecting ″Centralized Lien Operation (CLO) Contacts″.

Payment Not Located
  1. If you do not have a copy of the cancelled check, obtain an image of the remittance from RTR or request a copy of both sides of the remittance from the taxpayer as applicable. Refer to IRM 21.5.7.4.7.1, ISRP/RRPS, or IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System, for additional information.

  2. Check CC IMFOL using definer code "Q" for all resequenced transactions, which includes resequenced with RC 24 (TC 610 remittance with return). Refer to IRM 21.5.7.4.7.14.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer, in the second box of the If/Then chart for additional information.

    If Then
    Missing payment will not fully pay the balance due
    1. Request balance due from taxpayer.

    2. Establish an installment agreement per IRM 5.14, Installment Agreements, or IRM 5.19.1, Balance Due.

    Missing payment will fully pay the balance Input CC STAUP or TC 470 (no Closing Code). Refer to IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, for additional information.
    The copy of the remittance was provided and you cannot locate the payment, complete all necessary research
    1. Prepare Form 4446, Payment Tracer Research Record, and attach copy of the cancelled check and copies of all research documents.

    2. If applicable, send appropriate "C" letter.

    3. Forward to HPTF function in the campus that processed the payment.

Absolute Proof of Payment
  1. Absolute proof of payment is conclusive evidence that IRS received a payment, e.g.:

    • Cash receipts (Form 809 or IRS National Cash Register (NCR) receipts)

    • Cancelled checks

    • Negotiated money orders

    • Negotiated cashier’s checks

    • Narrative descriptions of endorsements by banks, money order vendors, and IRS employees (e.g., Revenue Officers)

  2. NCR receipts must identify the Register Number, time, date, office location and type and amount of tax paid.

  3. Absolute proof a Federal Tax Deposit was made is the verification or acknowledgment of a payment submitted to a commercial or Federal Reserve Bank. This proof can be:

    1. A cancelled check for the amount of payment, made payable to and negotiated by a commercial depository or a Federal Reserve Bank. Have the bank verify the credit was deposited in the Treasury Tax Loan Account (TT&L).

    2. A commercial bank or federal tax deposit receipt for the amount of payment.

    3. A photocopy of the FTD coupon received in the FTD processing campus.

    4. Transmittal showing the deposit in question was received and processed without adjustment. If an adjustment was made, verify the deposit was not included.

  4. When a lien is on the account (TC 582, lien indicator) and the payment will fully satisfy all outstanding liabilities, request a manual lien release. See IRM 5.12.3.3.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Operation (CLO). Contact information for the CLO can be found by selecting ″Centralized Lien Operation (CLO) Contacts″.

Payment Methods/Systems

  1. The following methods/systems are used for making/processing payments:

    • Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System(RRPS)

    • Manual Deposits

    • Field Office Remittances

    • Lockbox Payments

    • Installment Agreement User Fee Lockbox Payments

    • Justice Department Lockbox Receipts

    • Cashier’s Check

    • Money Orders

    • Truncated checks

    • Cash payments

    • ANMF payments

    • Foreign Remittances

    • Free items

    • Federal Tax Deposits (FTD) payments

    • Electronic Federal Tax Payment System (EFTPS) payments

    • Electronic Funds Withdrawal (Direct Debit) and Credit Card

    • Direct Debit Installment Agreements

    • Lloyd’s of London taxpayers

    • State Income Tax Levy Program (SITLP)

    • IRS Direct Pay

Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS)
  1. The Integrated Submission and Remittance Processing (ISRP) System converts paper tax and information documents, and remittances received by IRS into perfected electronic records of taxpayer data. When a tax document is received, it is opened and sorted by form type (e.g., Form 1040, Form 1040A, etc.). Remittances with their accompanying documentation are pre-sorted into groups called batches. Each batch is uniquely identified by a 12-digit Remittance Processing System Identification (RPSID) number. This number always begins with "00" , followed by 6-digits, followed by "0000." This system will capture, store, retrieve, archive (vouchers and check images) and route source data to downstream processing activities which subsequently post to the taxpayer's account on Master File.

    Note:

    You will not be able to research ISRP payments through the ISRP system once the information is available through RTR.

  2. The information stored in the archive system includes the following:

    1. The actual front image of a paper voucher or an image created from data that an ISRP operator entered when no voucher was present.

    2. Actual images of both sides of the remittance. The file on the back of the remittance contains the endorsement and encoding information.

    3. Data used to research for each voucher and related remittance, such as the TIN, DLN and date of deposit.

    4. The archive system permits the retrieval of document images and data for up to 5 years after the information has been processed through the remittance system.

      Note:

      Document 6209 Section 4.13, Document Locator Number - Residual Remittance Processing System (RRPA), provides exhibits of the RRPS Electronic Payment Voucher, information about the endorsement data, and the IRS audit trail.

  3. When the remittance (checks, money orders, etc.) is processed through RRPS, the remittance amount is encoded at the bottom right front, the IRS audit trail is printed on the back of the remittance to the right of the RPSID number. The system also stamps the U.S. Treasury on the back of the remittance.

  4. To resolve missing payments, you may need to research RTR. If RTR is not available to your area you may need to research the ISRP Archival Retrieval System. Fax Form 11357, ISRP Image Retrieval Request, to the campus that processed the payment. See the ISRP Archive Contact List, located on SERP under the Who/Where tab, for a list of contacts for each campus.

    Exception:

     

    • Route payments processed at Memphis to the Cincinnati Campus.

    • Route payments processed at Philadelphia to the Ogden Campus.

    • Route payments processed at Andover to the Fresno Campus.

    • Route payments processed at Atlanta to the Kansas City Campus.

    • All functions other than Brookhaven Accounts Management (AM) and Cincinnati Accounting function, will route requests for ISRP payments processed at Brookhaven to the Cincinnati campus. Brookhaven AM and Cincinnati Accounting functions will service their own requests.

  5. This process will scan "scannable" vouchers and checks and assign a DLN. Returns with payments will no longer have a DLN that matches the payment DLN. The inflated Julian date associated with the deposit item previously processed through RPS will no longer appear on the taxpayer's account.

  6. The ISRP RRPS audit trail is different from the RPS audit trail. It will reflect the following:

    • The tax period and transaction date are on the second line

    • The identifying information for a payment other than Master File, such as a photocopy payment, will also be displayed on the second line. The symbols will be the last 7 to 9 digits. For example, 20X0903. See IRM 3.8.44, Campus Deposit Activity, for additional information

    • If the payment is a multiple or split payment, an M or S will appear between the tax period and the transaction date

  7. The following is a comparison of the RPS/ISRP DLN:

    DLN Element RPS ISRP
    File Location Code Applicable SC Code Applicable SC Code
    Tax Class Various Various
    Document Code All Codes 17 - subsequent payment
    19 - overflow
    70 - TC 610 tax return payment
    76 - overflow
    20 - TC 430
    Julian Date Date work batched Deposit date
    Block Series Per IRM 3.5.61.3.89, Integrated Submission and Remittance Processing System (ISRP). 000 - 999
    Serial Number 00 - 99 RPS Number 00 - 99 System Assigns
    Year Digit Year processed RPS Number Year Processed System Assigns
  8. All Payment Tracer procedures, outlined in IRM 21.5.7, Payment Tracers, including those found in IRM 21.5.7.3, Missing Payments Research, should be followed for ISRP payments prior to initiating the following action:

    1. You have a copy of the front and back of the cancelled remittance, and cannot find the payment through preliminary research, complete Form 4446, enter the appropriate CC STAUP hold or TC 470 to hold the notices. The case must be transferred to Hardcore Payment Tracer Function (HPTF). Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, if appropriate. Follow procedures in IRM 21.3.3.4.2.1, Use of 86C Letter- Referring Taxpayer Inquiry/Forms to Another Office, to determine when it is necessary to notify the taxpayer.

    2. If you have a "slipped block" request the five documents before and after your payment if RTR is not available. If more than three payments have been misapplied, prepare Form 4446, Payment Tracer Research Record, and when appropriate, send Letter 86C. Enter the appropriate CC STAUP hold or TC 470 to hold the notices. Transfer the case to HPTF. If three payments or less have been misapplied, you should resolve the issue and have the payments applied to the correct accounts.

Manual Deposits
  1. Deposit items that are not processed through ISRP must be processed through Manual Deposit, Lockbox or IDRS. These include unidentified deposits and re-deposits of dishonored checks. Receipt and Control will prepare a payment posting voucher whenever a source document is not available and the remittance cannot be processed through Residual Remittance Processing System (RRPS).

  2. Remittances processed manually are underlined with a rocker symbol in green pencil, "green rockered" on the return. Encoder information is on the back of the remittance.

  3. Remittances are applied instantaneously when applied to the taxpayer's account through IDRS. Receipt and Control will prepare source documents for IDRS input.

  4. The National Cash Register (NCR) encoder is used for encoding and endorsing remittances not processed through Residual Remittance Processing System (RRPS). The DLN is not printed on the back of the check, but a sequence number is. You may use this sequence number to locate the encode tape for the DLN. Remittances will be endorsed with the agency location code of the office receiving the credit. See Exhibit 3.8.44-7, Agency Location Codes (ALC), which provides information on agency location codes.

Field Office Remittances
  1. Field Office Payment Processing involves all payments received from the field office employees. Field offices use overnight services to transship the tax receipts to their designated Submission Processing Center. See IRM 3.8.47.5.4.1, Submission Processing Center/Field Office Payment Processing Alignment for Form 809 Receipts and Tax Payments. Cash remittances must be converted to check or money order before sending for processing.

  2. Field office employees issue Form 809 when they receive cash. If payment is by check, money order, etc., a receipt is issued to the taxpayer.

  3. When the Field office employee issues Form 809, it becomes a posting document. The only exception is when the remittance is submitted with an original return. Then, the original return becomes the posting document.

  4. If the payment cannot be located after all preliminary research has been completed, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) at the campus that processed the payment, or processed the most recent payments.

Lockbox Payments
  1. The Lockbox operation involves the processing of tax payments by commercial banks. This method of processing payments accelerates the handling and deposit of funds received and is forwarded to Treasury.

  2. Lockbox banks process payments for the following IMF products:

    • CP 521, Installment Agreement Reminder Notice

    • CP 523, Installment Agreement Default Notice

    • Form 433-D, Installment Agreements

    • Form 1040, U.S. Individual Income Tax Return, Form 1040A, U.S. Individual Income Tax Return, and Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents

    • Form 1040, International, will now be processed for Austin SPC

    • Form 1040-ES, Estimated Tax for Individuals

    • Form 1040-NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040 (PR), Self-Employment Tax Return - Puerto Rico (In Spanish)

    • Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

    • Form 1040-X, Amended U.S. Individual Income Tax Return

    • Form 2159, Payroll Deduction Agreements

    • Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

    • Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax

    • Form 9465, Installment Agreement Request

    • Letter 3856, Monthly Reminder for Installment Agreement Payments or Letter 3856-A, Monthly Reminder for Installment Agreement Payments for Joint Liabilities

    • Other installment payments

  3. Lockbox banks process payments for the following BMF products:

    • CP 521, Installment Agreement Reminder Notice

    • CP 523, Installment Agreement Default Notice

    • Form 433-D, Installment Agreements

    • Form 940 or Form 940-EZ, Employer’s Annual Federal Unemployment (FUTA) Tax Return

    • Form 941, Employer’s Quarterly Federal Tax Return

    • Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees

    • Form 944,Employer’s Annual Federal Tax Return

    • Form 945, Annual Return of Withheld Federal Income Tax

    • Form 1041-ES, Estimated Tax for Estates and Trusts

    • Form 2159, Payroll Deduction Agreement

    • Form 2290, Heavy Highway Vehicle Use Tax Return

    • Form 9465, Installment Agreement Request

    • Letter 3856, Monthly Reminder for Installment Agreement Payments or Letter 3856-A, Monthly Reminder for Installment Agreement Payments for Joint Liabilities

    • Other installment payments

  4. Taxpayers mail remittances to the IRS at designated post office boxes for each form type. These addresses can be found in the instructions for the forms listed in (2) and (3) above.

  5. The bank encodes and endorses the remittance. The DLN, TIN, name control, received date, and tax period are virtually printed on the back of the check.

  6. The lockbox system generates an Optical Character Recognition (OCR) Remittance Register like the 813 Remittance Register.

  7. The DLN consists of a file location code (FLC), (the first two digits in the DLN), unique to lockbox processing. Use this number with the bank endorsement to determine the correct campus to research.

  8. All lockbox banks image checks, money orders, and vouchers can be viewed via RTR.

    1. If you need a copy of a check and the payment DLN has a list year of 7 (last digit of the DLN) or subsequent, research RTR to retrieve the check image.

    2. If you need a copy of a check and the payment DLN has a list year of 6 (last digit of the DLN) or prior (all payments made prior to 2006), contact the appropriate Lockbox Coordinator from the Campus Lockbox Coordinators list on the SERP "Who/Where" tab under Lockbox Information.

      Note:

      The Lockbox Coordinators will contact the lockbox banks when necessary.

Installment Agreement User Fee Lockbox Payments
  1. Taxpayers may request and obtain permission to pay a tax liability through installment payments even before a tax liability has been determined. All payments received for installment agreements will be processed as a TC 670 to the taxpayer's account. An automated sweep will occur at the IRS to apply user fees as appropriate.

  2. If a user fee payment cannot be located, transfer/reassign the case to the Compliance Services Collection Operation (CSCO), at the campus that processed the payment.

  3. CSCO will research the following User Fee Reports in Accounting:

    • User Fee Block Detail Listing - Lists payment, payment date, and Batch/Block Number

    • User Fee Batch/Block Totals Report - Lists block of payments for each date, Batch/Block Number, account number, number of items, and Batch/Block Amount

    • User Fee Split Balance Report - Lists payments split between User Fees and Tax payments, Sequence Number, TIN, Remittance Amount, User Fee Amount, and Revenue amount (payment other than user fee amounts)

  4. User fees related to installment agreements are on IDRS under MFT 13 or 55. MFT 13 or 55 is created when the CP 521 is generated. A TC 971 AC 82 or 83 will be sent to Master File to establish the module. Unlike other MFT 13 or 55 accounts, there will be no reference numbers. You must use CFOL command codes to research these modules. The user fee recovery program continued during 2002. In 2003, a new category was established on the Installment Agreement Accounts List (IAAL), for duplicate payments. Use command code ADD/ADC24 to move payments found on MFTs 13 or 55. For additional information see IRM 5.19.1.6.4.6.3, User Fee Payment Transfer/User Fee Abatements.

Justice Department Lockbox Receipts
  1. These receipts result from court actions and IRS referrals to Department of Justice (DOJ) for collection. Kansas City Processing Center (KCSPC) receives Standard Form 1081, Voucher and Schedule of Withdrawals and Credits, as notification of tax revenue secured by the (DOJ).

  2. If a taxpayer's cancelled remittance shows a DOJ endorsement:

    1. Transfer the case to KCSPC, HPTF.

    2. Issue Letter 86C to notify taxpayer the inquiry was transferred to KCSPC.

    3. Delay notices as appropriate.

  3. Prepare Form 3210, Document Transmittal, to include:

    1. Payment Tracer Request
      Department of Justice Payment Tracer Inquiry
      Accounting Control/Services Operation
      P.O. Box 24551
      Kansas City, MO 64131

    2. Taxpayer’s name, TIN, and tax period

    3. Input STAUP or TC 470

    4. Date Letter 86C was sent

  4. HPTF will coordinate the resolution with Accounting personnel in accordance with IRM 3.17.30.14, Revenue Receipts.

Cashier’s Check
  1. Cashier’s checks may be purchased from banks or other financial institutions.

  2. Receipts or copies of personal checks, used to purchase cashier’s checks, only serve as proof of payment to initiate research. The taxpayer is responsible for contacting the bank/vendor for a copy of the cancelled check.

    If And Then
    Payment cannot be located   Request a copy of the front and back of the cancelled cashier’s check from taxpayer. If taxpayer can fax a copy of the cancelled cashier’s check continue following "If and Then" boxes; otherwise, close the case. Input CC STAUP for 6 cycles.
    Payment has not cleared the bank Taxpayer has not paid the balance due and the bank will not issue a duplicate check unless they have an indemnity agreement from IRS Secure an indemnity agreement. Refer to IRM 21.3.4.7.7.4, Indemnity Agreements, and IRM 3.0.167.11, Indemnity Agreements, for guidance on Indemnity Agreements.
    Payment has not cleared the bank Taxpayer has paid the balance due and the bank will not return the funds to the taxpayer unless they have an indemnity (reimbursement) agreement from IRS Refer to IRM 3.0.167.11.1, Submission Processing Procedures, to determine the information that is needed from the taxpayer in order to secure an Indemnity Agreement, and then contact your local Planning and Analysis (P&A) Staff (through your manager). The P&A Staff will contact the author of IRM 21.5.7, Payment Tracers, for further guidance. Provide all the information listed in IRM 3.0.167.11.1, to your local P&A Staff (through your manager).
Money Orders
  1. Money order vendors leave the payee, payer, and date information blank on the money order. Taxpayer is responsible for providing this information.

    If And Then
    Payment cannot be located   Request that taxpayer contact vendor for photocopies of the money order. If taxpayer can fax a copy of the cancelled money order continue following "If and Then" boxes; otherwise, close the case. Input CC STAUP for 6 cycles.
    Payment was received and processed but was dishonored due to insufficient funds   Instruct the purchaser of the money order to contact the seller/issuer of the money order to obtain a replacement.
    Payment was received and processed, but has not cleared with the bank/vendor Taxpayer has not paid the balance due and the bank/vendor will not issue a duplicate money order unless they have an indemnity agreement from IRS. Refer to the procedures in IRM 21.3.4.7.7.4, Indemnity Agreements and IRM 3.0.167.11, Indemnity Agreements, to secure an indemnity agreement.
    Payment was received and processed, but has not cleared with the bank/vendor Taxpayer has paid the balance due by some other method but the bank/vendor will not return the funds to the taxpayer unless they have an indemnity (reimbursement) agreement from IRS Refer to IRM 3.0.167.11.1, Submission Processing Procedures, to determine the information that is needed from the taxpayer in order to secure an Indemnity Agreement, and then contact your local Planning and Analysis (P&A) Staff (through your manager). The P&A Staff will contact the author of IRM 21.5.7, Payment Tracers, for further guidance. Provide all the information listed in IRM 3.0.167.11.1, to your local P&A Staff (through your manager).
Truncated Checks
  1. Truncated checks are carbonless copies of original checks. Financial institutions no longer return cancelled checks to their clients.

  2. If the payment cannot be located, send the taxpayer Letter 167C, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, to request they contact the bank for a microfilm or computer image of the check. Close the case and input CC STAUP for 6 cycles.

Cash Payments
  1. Field/Area Offices issue Form 809, Receipt for Payment of Taxes, or a cash register receipt to taxpayer for cash payments.

  2. The tax return is validated at the time of receipt showing the amount and type of tax paid.

  3. The field/area office prepares Form 783, Remittance Register, or Form 795, Daily Report of Collection Activity, to list the payments. These forms are sent to the Submission Processing campus.

  4. Research IDRS, including CC URINQ and CC XSINQ and RTR if available for these remittances.

  5. If unable to locate the payment, prepare Form 4446, Payment Tracer Research Record. Transfer the case to the HPTF at the campus that processed the payment or processed the most recent payments.

  6. HPTF will verify Form 813 for the payment. HPTF will contact Internal Security, before allowing a substantiated credit from Account 6570, based on Form 809 as proof of payment.

    Note:

    If unable to locate, it may be necessary to contact the field/area office that took the payment in and request a copy of the money order purchased for the cash payment.

Automated Non-Master File (ANMF) Payments
  1. A DLN with a tax class "6" (the 3rd digit of the DLN) identifies a payment as Non-Master File (NMF). A flashing "N" at the bottom of the CC ENMOD, CC SUMRY and CC TXMOD screens indicate there is a NMF account at another Submission Processing (SP) Center. To access the NMF account, an "N" is input after the TIN on CC SUMRY or CC TXMOD.

    Note:

    All NMF accounts were centralized at the Cincinnati Campus as of September 2006.

  2. Contact the Accounting NMF function for researching payments dated before 1992, pre-ANMF payments. If the payment is found in another campus, request the credit be transferred to taxpayer's account. Follow procedures in IRM 3.17.46, Automated Non-Master File Accounting, for requesting NMF research and transcripts.

    Note:

    January 1, 2001, Master File introduced the new MFT 31, Separate Assessment Module. MFT 31 contains split spousal assessments previously processed to the ANMF System. Any new separate spousal assessments established on or after January 1, 2001, will be processed on MFT 31. Any spousal assessments processed prior to January 1, 2001, will remain on the ANMF and must be researched using the above NMF procedures. For more information regarding MFT 31, Split Spousal Assessments, refer to IRM 21.6.8, Split Spousal Assessments (MFT 31 / MFT 65). Follow normal payment tracing procedures for MFT 31 accounts.

Foreign Remittances
  1. All international or possession returns with remittances are deposited where received. As of July 1, 2007, IMF international returns are sent to the Austin campus and BMF international returns are sent to the Ogden campus. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have a U.S. bank’s routing symbol printed in the lower left corner of the check and have a 9-digit routing number. These are processed as a regular deposit.

  2. Any foreign remittance including remittances that are payable in U. S. dollars, drawn on foreign banks, and received with tax returns or documents, that fail to meet any portion of (1) above will be processed using manual deposit. The deposits are then mailed to Citibank in Wilmington, Delaware and numbered and processed as a foreign remittance.

  3. Receipt and Control will process source documents with remittances that are payable in foreign currency and drawn on foreign banks as manual deposits. The deposits are mailed to Citibank for a money conversion report.

  4. When foreign currency is received, Receipt and Control will contact Bank of America to convert foreign currency to U. S. dollars. The tax return or document will be processed using manual deposit guidelines.

  5. Each campus has specific deposit processing procedures. Refer to IRM 3.8.45.26, Specific Campuses Processing, for additional information.

  6. For additional information on foreign remittances, refer to IRM 3.8.45.15, Foreign Check Remittances, for additional information.

Free Items
  1. If a taxpayer's cancelled check is stamped "FI" , it indicates the bank is holding credits belonging to taxpayer, referred to as "Free Items."

  2. If the case involves "Free Items" :

    1. Obtain a current transcript of the account.

    2. Prepare Form 4446, Payment Tracer Research Record.

    3. Route to the HPTF function at the campus center that is responsible for processing the payment when it is received.

      Note:

      The HPTF will initiate action to obtain the credit from the bank.

Electronic Federal Tax Payment System (EFTPS)
  1. Electronic Federal Tax Payment System (EFTPS) is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes.

  2. The system has been programmed to accept payments for tax years 1954 and subsequent.

    Note:

    The first two digits of a 17- digit EFT number denote the Campus Code and are not entered into the CC URINQ.

    • The second digit in the EFT number will be a "0" for electronic funds withdrawal (direct debit) payments

    • The second digit in the EFT number will be a "6" for credit card payments

  3. Effective March 2004, Bank of America is the sole Financial Agent for EFTPS.

  4. Taxpayers must enroll with the financial agent for IRS pre-validation before using the system. Taxpayers may make payments to the financial agent by personal computer, telephone, or bank.

  5. Electronic funds withdrawal (EFW) is another method of paying electronically while filing electronically. The taxpayer authorizes an electronic withdrawal of funds from a designated checking or savings account during the e-file transaction.

    Note:

    Both EFTPS and EFW payments are electronic fund transfers.

  6. Payments made by EFT will show File Location Code numbers 71 (1996), or 72 (1997 through 6/30/2005), or 81 (after 6/30/2005) and Document Code 19 in the DLN. The TUS Number and Microfilm Serial Number were replaced with an Electronic Funds Transfer Number.

  7. Payments processed through EFTPS can be identified through the EFT number shown on IDRS. After taxpayers enter the information, EFTPS supplies an acknowledgment number to the taxpayer. Taxpayers should write down this number and keep it for future reference. If there is any problem with the payment, this number allows IRS to trace the payment quickly. Payments made after January 1, 2004, should be constructed using the chart in IRM 3.17.277.5.3, EFT Number. For payments made prior to January 1, 2004 customer service representatives can construct the EFT number from a taxpayer provided acknowledgment number using the following elements:

    Digit(s): Identify:
    1 and 2 The Processing Campus. Refer to Document 6209, Section 4.3, Campus and File Location Codes.
    3 The Financial Agent.
    • 1 - JP Morgan Chase & Co. (Prior to March 2004)

    • 2 - Bank of America

    • 3 - BFS (formerly FMS) Treasury Offset Program

    • 4 - Reserved

    • 5 - RS-PCC

    4 The Payment Method.
    • 0 - IRS e-file (Direct Debit)

    • 1 - ACH Credit (EFTPS through your financial Institution)

    • 2 - ACH Debit (EFTPS Direct)

    • 3 - FR/ETA

    • 4 - Reserved

    • 5 - Levy

    • 6 - Credit Card

    • 7 - EFTPS - Online

    • 8 - Railroad Retirement Board

    • 9 - Government (FEDTAX II or Federal Payment Levy Program)

    5 The Payment Indicator. This depends on the Payment Method. See IRM 3.17.277.5.3 (4), EFT Number, for details.
    6–9 The Julian Date. This is the last digit of the year plus 001–366, or Last digit of the year plus 401–766.
    10–11 The Bulk Provider Number. Refer to the NOTE below.
    10–17, or 12–17 The Serial Numbers. These are Sequentially Assigned.

    Note:

    When the combined payment indicator (position 5) is 7, 8, or 9, positions 10 and 11 are used to identify the bulk filer who submitted the payment.

  8. All Bulk Providers are under Bank of America (BOA) effective 7/1/2005.

  9. CC EFTPS is a research tool developed primarily for payment tracer purposes. The command code researches the EFTPS data base for payment data and audit history.

  10. Research the payment using CC EFTPS by:

    1. TIN, EFT Amount and Payment Date - Definer T;

    2. If the taxpayer supplied EFT Number - Definer E; or

      Note:

      The first two digits of a 17-digit EFT number denote the Campus Code and are not entered in the CC EFTPS

    3. Taxpayer supplied Reference Number (Confirmation Number for Credit Card Payments) - Definer R

    Note:

    Refer to IRM 2.3.70, Command Code EFTPS, for additional information.

    If Then
    The taxpayer does not have the EFT number Advise the taxpayer to
    1. Contact the EFTPS customer service center to obtain the EFT number. The EFTPS toll-free numbers for customer service are:

      • English 1-800-555-4477

      • Spanish 1-800-244-4829

      • Telecommunications Deaf Devices (TDD) 1-800-733-4829

      • Financial Institutions 1-800-605-9876

      The EFTPS toll-free numbers are available 24 hours a day, 7 days a week, except for the TDD line which hours are 8:00 am to 8:00 p.m. ET M-F).

    2. OR check their EFTPS payment history by accessing EFTPS.gov.

    CC EFTPS indicates that EFTPS processed the payment to Master File with the correct taxpayer information; however, the payment has not posted to the tax module displayed
    • Research the Closed Unpostable Register, GUF 57–40 at Ogden Campus (@29). All EFTPS payments are processed in Ogden.

    • The payment does not show using CC ERINV or CC UPTIN@29 and the STATUS field on EFTPS output shows the payment is PROCESSING and does not show a name control in the NAME CONTROL field, contact the Ogden Campus EFTPS≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • For additional information, refer to IRM 3.12.37.17.3, Researching Rejected Unpostables, for additional information.

    The CC EFTPS response indicates no records were found for your input
    • Recheck your input parameters and resubmit, or

    • EFTPS did not receive the payment

    The payment was not received by the EFTPS system and the taxpayer states a payment was made through a service provided by his/her financial institution
    • Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent.

    • If the payment can still not be located, the taxpayer should obtain a paper proof of payment from their financial institution.

    Note:

    The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number to correct the taxpayer’s account.

    The payment was not received by the EFTPS system and the taxpayer states a payment was wired to the IRS
    • Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent.

    • The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number to correct the taxpayer’s account.

    Note:

    Wire payments are processed through the Electronic Tax Application (ETA) at the Federal Reserve Bank of Minneapolis.

  11. Refer to IRM 3.17.277, Electronic Payments, for more information on EFTPS.

Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer
  1. The following procedures should be followed to trace payments made by electronic funds withdrawal (direct debit) or credit card. Obtain the following information from the taxpayer:

    • Taxpayer’s Name

    • Taxpayer’s TIN

    • Date of Payment

    • Amount of Payment

    • Type of Tax Paid: Form 1040, U.S. Individual Income Tax Return, Form 1040 Balance Due Notice, Form 1040, Advanced Payment of Determined Deficiency, Form 1120 U.S. Corporation Income Tax Return Series, Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, Form 8868, Application for Extension of Time To File an Exempt Organization Return, Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, Form 1040-ES,Estimated Tax, Form 2350,Application for Extension of Time To File U.S. Income Tax Return, Form 941,Employer’s QUARTERLY Federal Tax Return, Form 940,Employer's Annual Federal Unemployment (FUTA) Tax Return, Form 944,Employer’s ANNUAL Federal Tax Return, Form 1041, U.S. Income Tax Return for Estates and Trusts, and Installment Agreement payments

    • Tax Year

    • Payment method (electronic funds withdrawal for an e-file and e-pay return or a credit card payment for an Integrated e-file and e-pay return, Pay by Phone, or Pay by Internet transaction)

    • Credit Card Payment Confirmation Number (if paid by phone or Internet) or a Declaration Control Number (if paid through an Integrated e-file and e-pay option)

    • Credit Card Service Provider (if payment method is credit card through either the phone or Internet)

  2. These payments are subsequently processed through EFTPS. Research EFTPS by following the EFTPS payment tracer guidelines and by using CC EFTPS to ensure that the Service processed the payment. Refer to the in IRM 21.5.7.3.2, IDRS Research for Payment, and IRM 21.5.7.3.6, Researching Unpostable Payments, to research payments and unpostable payments. Payments will appear on CC EFTPS before posting to Master File. If the payment is found using CC EFTPS inform taxpayer payment has been received. If the payment has posted, the EFT number on IDRS will identify it. If the payment cannot be found, check the unidentified remittance file.

    • The fourth digit in the EFT number will be a "0" for electronic funds withdrawal (direct debit) payments

    • The fourth digit in the EFT number will be a "6" for credit card payments

      If Then
      The payment needs to be transferred The credit transfer transaction must include the Electronic Payment Indicator
      The 1040 payment is resequencing at Master File waiting for the return to post CC EFTPS and CC IMFOL Definer Q will be the only research method available to identify the receipt of the payment.

      Note:

      Electronic funds withdrawal transactions generally post to master file one to two cycles after the effective date of the payment.

      The taxpayer e-filed the return with an electronic funds withdrawal payment and the payment cannot be located by using CC EFTPS
      1. Check to see if the taxpayer properly entered the withdrawal request on the e-filed return by using CC TRDBV. Refer to IRM 21.7.4.4.4.15, Modernized e-file Program (MeF) for Corporate and Exempt Organization Returns, for information on electronically filed: Form 1120, Form 1120S and Form 990.

      2. On the first page of CC TRDBV, there is a list of forms filed with the return. The form that indicates that the taxpayer requested an electronic funds withdrawal is titled "FORM-PYMNT" .

      3. The access code shown to the left of "FORM-PYMNT" may be entered on the top line of the CC TRDPG screen to bring up the FORM-PYMNT. The FORM-PYMNT will show the:
        RTN
        Bank Account Number
        Payment Amount
        Account Type (savings or checking)
        Date the Taxpayer Requested the Money be Withdrawn From Their Bank Account.

      4. If CC TRDBV shows the "FORM-PYMNT" , the payment will be processed through EFTPS unless it was cancelled.

      5. If CC TRDBV does not show a "FORM-PYMT" , instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances.

      Note:


      Form 1040 balance due e-filed returns do not post until cycle 20 or one cycle after the full payment posts to the account, whichever occurs first.


      Credit card payments usually post 5-7 business days after the payment is completed and will appear on the appropriate Taxpayer Information File (TIF) as a pending transaction using CC TXMOD.
      The credit card payment was made through an Integrated e-file and e-pay option Research CC EFTPS for the payment. If the payment is not shown, refer the taxpayer to their software package or tax professional for further assistance.
      The credit card payment was made by phone or internet Check different tax periods to ensure that the taxpayer did not select the wrong tax type (for example, chose current year 1040-ES instead of prior year 1040). Also, verify what TIN was used for the transaction.

      Note:

      Joint filers who submitted the transaction under the secondary SSN instead of the primary SSN may require a credit transfer.

      The credit card payment cannot be located using research, CC EFTPS and CC IMFOLQ or the unidentified remittance file, and the taxpayer has a confirmation number for a pay by phone or pay by Internet transaction
      - or the credit card payment was made through either a pay by phone or Internet option but the taxpayer does not have a confirmation number and no payment can be located on IRS records
      Refer the taxpayer to the service provider they used to trace the payment. If the last character of the credit card confirmation number (the number is 7 digits long) is:
      • "1" - The payment was made through Official Payments Corporation or through ChoicePay.

      • "3" - The payment was made through Link2Gov or through Businesstaxpayment.com.

      • "4" - The payment was made through WorldPay US, Inc.

      Refer to IRM 21.2.1.48.5(7), Credit or Debit Card Payments (Pay by Phone or Internet), for each company's contact information.
      The credit card payment cannot be located, the service provider cannot verify the payment and the payment is not reflected on the credit card billing statement Instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances
Direct Debit Installment Agreements
  1. Direct Debit Installment Agreements (DDIA) is a Collection program. Taxpayers make arrangements to pay tax liabilities in installments via Electronic Funds Transfers. Refer to IRM 5.14.10.4, Direct Debit Installment Agreement, for additional information.

  2. Payments post to Master File as TC 670, Document Code 18, Blocking Series 800-899.

  3. Prepare Form 4446, Payment Tracer Research Record, and route to HPTF, if unable to locate the payment.

Remittance Strategy Paper Check Conversion (RS-PCC)
  1. As of January 2008, Remittance Strategy Paper Check Conversion (RS-PCC) was implemented. It is a web based system that enables AM Campus Support, Submission Processing (SP) campuses, and TAC offices to electronically process paper remittances at the point of receipt. Payments processed through RS-PCC include those received in areas of the AM Campus Support Sites (Andover, Atlanta, Brookhaven, Memphis, and Philadelphia) such as Insolvency, Offer In Compromise (OIC), and Mis-directed payments, as well as payments for Offshore Voluntary Disclosure Program (OVDP) received at the Austin SP campus and payments received at Field Assistance (FA) TAC offices.

  2. Payments processed through RS-PCC are scanned and electronically sent to Bureau of the Fiscal Service (FS) Over the Counter Channel Application (OTCnet) for deposit. RS-PCC interfaces with the Electronic Federal Payment Posting System (EFPPS), which allows the taxpayer's payment information to post to Master-file

  3. OTCnet converts paper checks (personal and business) into electronic Automated Clearing House (ACH) debits or image documents that are cleared through the Check 21 network. Paper checks can be bank checks (personal or business), money orders, cashier’s checks, credit card checks, and/or state and federal checks. See IRM 3.17.278, Paper Check Conversion (PCC) and Remittance Strategy Paper Check Conversion (RS-PCC) Systems.

  4. Posting information of RS-PCC payments is sent to EFPPS for master file posting. The Ogden Accounting Function is the only site that has access to the RS-PCC images as these files go through EFPPS/EFTPS. When Ogden Accounting Function requests an RS-PCC image, the back of the check will indicate:

    FRB Cleveland
    0410-0603-3
    US Tres DG

  5. If the taxpayer's RS-PCC payment cannot be located using the information found in IRM 21.5.7.4.7.15.1, Researching RS-PCC Payments, complete Form 4446, Payment Tracer Research Record, and mail the form to:
    Internal Revenue Service
    Ogden Submission Processing Center
    Payment Correction Team 37302
    M/S 6264
    P.O. Box 9941
    Ogden, UT 84409.

Researching RS-PCC Payments
  1. RS-PCC payments are identified by a DLN beginning with 81, 82, or 83 and a 15 digit Electronic Funds Transfer (EFT) trace number on IDRS.

    Note:

    The EFT number that identifies an RS-PCC payment is the same EFT number that identifies an EFTPS payment. The EFT trace on CC IMFOLT and CC BMFOLT is a 17-digit number with the first two numbers identifying the SP center code (e.g., 29 for Ogden) and the last 15 digits are the EFT number.

    Note:

    Taxpayers do not have to be enrolled in EFTPS for their payments to be processed through RS-PCC and they will not have the EFT number.

  2. The EFT number for payments processed at AM campuses and Austin SP will begin with 520.

  3. The EFT number for payments processed at TAC offices will begin with 521, 522, 523, and 524.

  4. The eighth and ninth digits will represent the site where the payment was processed. For a listing of all RS-PCC EFT site listings refer to Exhibit 3.17.278-4, Field Assistance RS-PCC Sites.

  5. Utilizing the information above, access the RTR system to locate the payment. Refer to IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System.

    Note:

    Payments processed through RS-PCC will not have any IRS information stamped on the back of the check.

  6. RS-PCC payments are identified by the site identification number as follows:

    Site Identification Number
    Andover 08
    Atlanta 07
    Brookhaven 19
    Memphis 49
    Philadelphia 28
    FA TAC Offices 00
  7. If you cannot locate the missing payment after performing preliminary research, refer to IRM 21.5.7.4.2 (2), Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for required preliminary research, then follow the procedures found in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF) to prepare the referral, Form 4446, Payment Tracer Research Record. Include the following information in the remarks section of the Form 4446:

    • The taxpayer's contact number

    • Notate "RS-PCC Payment"

  8. Advise the taxpayer to allow 30 days to receive a response.

Lloyd’s of London Taxpayers
  1. Lloyd’s of London makes quarterly deposits for some 1040ES/NR taxpayers via Electronic Funds Transfer (EFT). As of July 1, 2007, these deposits are made at the Kansas City campus only.

  2. For payments made to Philadelphia prior to July 2007, prepare Form 4446, Payment Tracer Research Record, and route to HPTF, in the Ogden campus if unable to locate the payment.

  3. HPTF will research the Fedwire Deposit System support listing maintained in Accounting by the payment date.

State Income Tax Levy Program (SITLP)
  1. The State Income Tax Levy Program (SITLP) is an automated levy program. SITLP matches a Master File database of delinquent taxpayers eligible to be levied, against a database of state tax refunds for each state participating in SITLP. Currently, this process only matches against IMF accounts. Refer to IRM 5.19.9.2(11), State Income Tax Levy Program (SITLP), for a listing of participating states.

  2. See IRM 5.19.9, Automated Levy Programs, for more information on SITLP inquiries, exclusion criteria, and appeals procedures.

  3. Martinsburg Computing Center (MCC) creates SITLP files for states to process biweekly. Files are created and shipped during even cycles. The states generally process the SITLP file for a two week period, and creates a cartridge that is sent to the appropriate campus for processing. The state sends the cartridge with a paper check for the total amount of the SITLP levy proceeds to a SITLP Coordinator at the processing campus or transmits the payment electronically via EFTPS.

  4. Each state is required to send the taxpayer correspondence advising of the SITLP levy and refer any inquiries to the ACS toll-free telephone number. Taxpayers may receive the state notice weeks before the IRS notice, CP 92, Notice of Levy on State Refund Notice of Your Right to a Hearing, is issued. As a result, little information is available. This has resulted in telephone calls by IRS employees to state taxing agencies. FRONT-LINE ASSISTORS SHOULD NOT CALL STATE TAXING AGENCIES.

  5. When it is determined that a taxpayer is not excluded from the SITLP levy, the combination of a TC 971 AC 600 and a TC 670 designated payment code (DPC) 20/21 on a tax module generates the CP 92.

  6. If Then
    A TC 971 AC 600 is present without a corresponding TC 670 DPC 20 or 21 It is likely the levy proceeds are forthcoming, or were previously applied to other modules
    Both the TC 971 AC 600 and a TC 670 DPC 20/21 are present The SITLP levy proceeds were applied to the tax module
    The taxpayer wants to resolve the remaining balance, discuss full pay, installment agreement, offer in compromise, etc. Follow procedures in IRM 5.19.1, Balance Due.
    The SITLP levy was erroneous Procedures should be followed to issue a manual refund.

    Note:

    Wrongful levy cases and urgent situations requiring refunding of SITLP payments should be discussed with the SITLP Coordinator. They will determine if a wrongful levy situation has occurred or if the State needs to be contacted. The SITLP Coordinator Listing can be found be selecting State Income Tax Levy Program (SITLP) Coordinators under the Who/Where tab on the SERP Home Page.

    After all research has been completed and you are unable to locate the payment, Prepare Form 4446, Payment Tracer Research Record, and route to HPTF.
Payment Tracer Procedures for Form 8038-T
  1. Missing payments related to tax exempt bonds (TEBs) that are received with Form 8038-T, Arbitrage Rebate, Yield Reduction, and Penalty in Lieu of Arbitrage Rebate, are worked at the Ogden Accounts Management Campus (OAMC) in the Exempt Organization Accounts Team. Form 8038-T is the only tax exempt bond that is received with a remittance (with the exception of closing agreements). The remittance is identified as the green rockered money and processed as a TC 610 to the Master File.

  2. Any campus receiving Form 8038-T payment tracer cases should transship the case to OAMC, Exempt Organization Accounts Team using Form 3210, Document Transmittal. Ogden will follow the procedures in IRM 21.7.7.5.4.3, TEB Payment Tracer Procedures, to resolve the case.

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

  2. Restitution is generally limited to losses caused by the offense(s) of conviction. The major exception to this general rule is in cases involving plea agreements. The parties to a plea agreement in any criminal tax case may agree to restitution in an amount greater than the loss attributable to the offense(s).

  3. IRC § 6201(a) was amended to provide that for restitution orders entered after August 16, 2010, the IRS shall assess and collect the amount of restitution ordered in a criminal case for failure to pay any tax imposed by the IRC in the same manner as if such amount were a tax. Prior to the amendment, IRS could not take administrative collection action to collect the restitution amount unless the tax was assessed in a separate civil proceeding.

  4. The conditions of probation and restitution ordered are set forth in a document signed by the judge called a Judgment and Commitment order. Judgment and Commitment Orders normally specify that defendants are to submit restitution payments to the office of the clerk of court in the district in which the defendant was sentenced. This will generally include restitution payments required to be paid to the IRS.

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

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

    • IRS-RACS
      Attn: Mail Stop 6261, Restitution
      333 W Pershing Road
      Kansas City, MO 64108

    Note:

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

  7. Inquiries regarding missing court ordered restitution payments or if taxpayer’s cancelled check shows a Department of Justice (DOJ) endorsement, contact Kansas City SPC Technical Advisor at 816-499-5949 for receipt and reconciliation of criminal restitution payments.

  8. In connection with prosecutions for identity theft, refund schemes and tax evasion, state courts sometimes order defendants to pay restitution to the IRS. The IRS has communicated to the states the proper address to send restitution payments, which is the address in (6) above, but to a different M/S:
    Attn: M/S 6261
    Special Services Team

    Note:

    The transmittal needs to indicate "State Restitution/Special Services Team" .

  9. Further information regarding criminal restitution payments can be found in IRM 3.17.243.10.9.8, MFT 31 Case Procedures.

IRS Direct Pay
  1. IRS Direct Pay is a payment application that is available to Individual Master File (IMF) taxpayers through IRS.gov. Refer to IRM 21.2.1.48.1, IRS Direct Pay, for additional information regarding this new payment method.

  2. Refer to IRM 21.2.1.48.1.1, Responding to IRS Direct Pay Inquiries, regarding verification of payments made through IRS Direct Pay.