25.5.9 Fees and Costs for Summoned Witnesses

Manual Transmittal

April 27, 2017

Purpose

(1) This transmits revised IRM 25.5.9, Summons Handbook, Fees and Costs for Summoned Witnesses.

Material Changes

(1) IRM 25.5.9.1, replaced Overview with content to comply with the new Internal Management Documents System, Internal Revenue Manual (IRM) internal control requirements.

(2) IRM 25.5.9.3, paragraphs (5), (6), and (7), added examples of allowed and disallowed costs, and added who to contact for questionable costs.

(3) IRM 25.5.9.4(1), clarified that the taxpayer’s employee and not the taxpayer’s representative is entitled to reimbursement.

(4) IRM 25.5.9.6, moved this section to IRM 25.5.9.1.6, Definitions.

(5) IRM 25.5.9.6(2), referred to IRM 25.5.3.5 for procedures handling summoned records on encrypted storage media.

(6) IRM 25.5.9.6(5), added guidance to contact the Summons Help Desk if there is an electronic records charge on the invoice.

(7) IRM 25.5.9.7, added new subsection for records received by electronic transmission.

(8) IRM 25.5.9.8.1(1)(e), clarified that Line 6 of Form 6863 includes the actual cost of extracting electronic information and number of paper copies.

(9) IRM 25.5.9.8(3), added missing signature and signature dates as examples of invoice errors, and included a Note that the invoice will be returned to the originating employee if signatures and signature dates are missing.

(10) IRM 25.5.9.8.5(1), converted *CFO BFC Invoice Link to an e-mail address link and added the Beckley Finance Center e-Fax numbers.

(11) IRM 25.5.9.8.5(4), added guidance to submit the third-party detailed invoice with the Form 6863 and that copy of summons is not needed.

(12) IRM 25.5.9.8.6(2), added e-mail link to the Summons Help Desk.

(13) IRM 25.5.9.8.7, added new subsection relating to previously disallowed expenses that are now allowed.

(14) IRM 25.5.9.10(2), added procedures on what to do when a timely petition to quash the summons is received.

(15) The revision to this IRM section includes editorial changes, formatting, and IRM reference corrections throughout.

Effect on Other Documents

IRM 25.5.9 dated October 24, 2014 is superseded.

Audience

All Operating and Functional Areas

Effective Date

(04-27-2017)

Kristen E. Bailey
Director, Collection Policy
Small Business Self Employed

Program Scope and Objectives

  1. The Summons Handbook provides guidelines for all IRS functions in one multifunctional handbook.

  2. Purpose: This IRM provides instructional procedures relating to the payment and processing of summons invoices.

  3. Audience: All employees authorized to obligate appropriated funds for payment of search costs, reproduction costs, and transportation costs in connection with third party summonses issued under the Internal Revenue laws.

  4. Policy Owner: Director, Collection Policy.

  5. Program Owner: Collection Policy Headquarters, an organization within the Small Business/Self-Employed (SB/SE) division.

  6. Primary Stakeholders: Employees who prepare and approve summons invoices.

  7. Program Goals: Provide guidance and procedures relating to the payment of summons invoices.

Background

  1. The Summons Handbook provides guidelines for all IRS functions in one multifunctional handbook. This section provides information concerning the payment of witness fees and other costs, invoice processing guidelines, and witness inquiries concerning payment of summons invoices associated with summons responses.

Authority

  1. IRC 7610 provides for the payment of witness fees and mileage to summoned witnesses and the payment of search, reproduction, and transportation costs to certain third-party witnesses. Third parties complying with a summons will be paid under the terms and conditions as set forth in Treas. Reg. 301.7610-1.

  2. Search, reproduction, and transportation cost payments are in addition to and not a substitute for a summoned witnesses’ right to witness fees and travel expenses.

  3. IRC 7610 provides for payments to third parties who request reimbursement for costs incurred in complying with a summons. Payments may be made to third parties without the issuance of a summons for records needed in an investigation which are available to the general public, under IRC 7801. See IRM 1.32.1.9(5),Claiming Reimbursement.

  4. The procedures and rates of payment contained herein take their authority from:

    1. 26 USC 7610, as enacted by Public Law 94–455, October 4, 1976 (Tax Reform Act of 1976)

    2. 26 USC 7801 with regard to public records where no summons is issued

    3. Treasury Department Order No. 150–10, dated April 22, 1982

    4. IRS Delegation Order No. 25–6, dated August 8, 1997 (formerly Delegation Order No. 178); see IRM 1.2.52.7, Cost of Complying with a Summons

    5. Treas. Reg. 301.7610-1

  5. Delegation Order SBSE 25-6-1 provides the levels of authority delegated to obligate funds for payment to third parties who request reimbursement for the cost of copying with a summons, Form 6863, Invoice and Authorization for Payment of Administrative Summons Expenses.

Responsibilities

  1. IRM 1.2.52.2(9), Delegation Order 25-1, lists the employees delegated to issue a summons.

  2. The approval of the issuing officer's manager, or any supervisory official above that level is required on a summons to a third party witness. See IRM 1.2.52.2(8), Delegation Order 25-1. The approval is evidenced by the supervisor's signature on the summons, or by a statement on the summons, signed by the issuing officer, that he or she had prior authorization to issue the summons and stating the name and title of the authorizing official and date of authorization.

Program Management

  1. In general, the Service should issue summonses only when the taxpayer (or other witness) will not produce the desired records or other information voluntarily. A summons is specific to each case.

  2. Summons invoices are processed by Beckley Finance Center.

Program Controls

  1. The Service employee who issued the summons keeps the original summons invoice in their administrative case file. The summons invoice is subject to the same retention standards as the case file.

Definitions and Acronyms

  1. The following is a list of terms commonly used by the Service when a third party summons is served for books, records, and documents:

  2. Taxpayer: The person with respect to whose liability the summons is issued.

  3. Third Party: Any person served with a summons other than:

    1. A taxpayer; or

    2. An officer, employee, agent, accountant, or attorney of a taxpayer who, at the time the summons is served, is acting as such.

  4. Third Party Records: Books, papers, records, or other data in which the taxpayer does not have a proprietary interest at the time the summons is served.

  5. Directly Incurred Costs: Costs incurred solely, immediately, and necessarily as a consequence of searching for, reproducing, or transporting records in order to comply with a summons. Directly incurred costs do not include proportional allocation of fixed costs, such as overhead, equipment depreciation, etc. However, where a third party’s records are stored at an independent storage facility that charges the third party a fee to search for, reproduce, or transport particular records requested, such fees are considered to be directly incurred by the summoned third party and are payable at the same rate the summoned third party is entitled to receive under Treas. Reg., 301.7610-1, i.e. $8.50/hour for personnel time used by the independent storage facility and $0.20/page for copies of documents produced by the independent storage facility.

  6. Search Costs (include only):

    1. The total cost of personnel time directly incurred in locating and retrieving records or information; and

    2. Direct costs of extracting information stored by computer. Salaries of persons locating and retrieving summoned material are not includible in search costs.

      Note:

      Persons are paid a set amount for time directly incurred regardless of their salary or wage. Also, search costs do not include salaries, fees, or similar expenditures for analysis of material or for managerial or legal advice, expertise, or research, nor does it include time spent for such activities.

  7. Reproduction Costs: Costs incurred in making copies or duplicates of summoned documents, transcripts, and other similar material.

  8. Transportation Costs: Costs incurred to transport personnel to search for records or information requested and costs incurred solely by the need to transport the summoned material to the place of examination.

  9. The table below lists commonly used acronyms and their definitions.

    Acronyms

    Acronym Definition
    CD Compact Disc
    CFO Chief Financial Officer
    DVD Digital Video Disc
    EFT Electronic Funds Transfer
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    SBSE Small Business Self Employed
    IRS Internal Revenue Service
    SF Standard Form
    SSN Social Security Number
    TIN Taxpayer Identification Number
    USC United States Code


Related Resources

  1. IRM 25.5, Summons Handbook, provides guidelines for all IRS functions in one multifunctional handbook. The sections are:

    • IRM 25.5.1, Introduction

    • IRM 25.5.2, Preparation

    • IRM 25.5.3, Procedures

    • IRM 25.5.4, Examination of Books and Witnesses

    • IRM 25.5.5, Summons for Taxpayer Records and Testimony

    • IRM 25.5.6, Summonses on Third-Party Witnesses

    • IRM 25.5.7, Special Procedures for John Doe Summonses

    • IRM 25.5.8, Use of Summons Special Applications

    • IRM 25.5.9, Fees and Costs for Summoned Witnesses

    • IRM 25.5.10, Enforcement of Summons

    • IRM 25.5.11, Title 31 Bank Secrecy Act Summons

Delegation of Authority

  1. The Commissioner of Internal Revenue Service has delegated to the Area Directors, and to such persons as the Area Directors deem appropriate, the authority to obligate appropriated funds for making payment for search, reproduction, and transportation costs in connection with complying with a third-party summons. See Delegation Order 25-6. As a result of this delegation order, each business unit then delegates to the level of authority needed for obligation of funds.

  2. Throughout this IRM, the term "examiner" will be used for a Service employee with delegated authority to issue summonses, such as a Revenue Officer, Revenue Agent, Tax Compliance Officer or a Special Agent.

  3. Examiners should estimate the obligation needed for payment of the cost of compliance with the summons and initiate the necessary administrative action to obtain the required level of approval authority under Area Delegation Orders, if needed.

Payments for Costs in Complying with Summons

  1. IRC 7610 provides for payments to third parties who request reimbursement for costs incurred in complying with a summons. Payments may be made to third parties without the issuance of a summons for records needed in an investigation which are available to the general public, under IRC 7801.

  2. No payment may be made under IRC 7610 until the third party has satisfactorily complied with the summons and has submitted an itemized bill or invoice per Treas. Reg. 301.7610-1(c)(1).

  3. If a third party has satisfactorily complied with a summons but the invoice is determined to be incomplete, the agency shall:

    • Return the invoice to the witness as soon as practicable after receipt, but no later than seven calendar days after receipt of the invoice, and

    • Notify the witness in writing of all defects that prevent payment, and request invoice re-submission as soon as possible. The examiner's notification should clearly outline the actions necessary to complete, or perfect, the document.

  4. The Service must perfect and timely process and pay an invoice not returned to the witness within seven calendar days of invoice receipt, but only when the witness has first satisfactorily complied with the summons. The examiner is responsible for perfecting and processing the invoice when the seven calendar day review time-frame is not met.

  5. The examiner is in the best position to determine what costs are reasonable based on the type of documents received and the age of the documents. Examples of allowed costs include:

    • Paper copies, when the same documents are not also included on storage media or by electronic transmission, paid at $0.20/page (two-sided pages are counted as two separate pages)

    • Cost of storage media (e.g. CD, DVD, thumb drive, etc)

    • Search (provided in number of hours spent to comply with the summons and paid at $8.50/hour)

    • Other costs, such as transportation cost (e.g. postage, shipping, etc)

  6. Examples of disallowed costs include:

    • Charges for duplicate records (if the examiner requests both electronic and paper copies, the Service must pay for both the electronic and paper copies)

    • Legal fee (Treas. Reg. 301.7610-1 allows $8.50/hour; request the witness to correct the invoice and delete the number of hours legal personnel spent reviewing the accuracy of the summoned records)

    • Certification fee (only allowed if the examiner requested certification of the records)

    • Charges based on formulas (i.e. 50 statements an hour, 100 checks an hour); request the witness to correct the invoice and provide the actual search hours spent complying with the summons

  7. Send an e-mail to *CFO BFC Summons Help Desk if there are questionable charges on the invoice.

    Note:

    It is the examiner's responsibility to notify the third party when a claim is reduced, explaining the amount disallowed and the reason for the disallowance. The examiner or the examiner’s manager can later allow the charge after additional information is provided by the third party. IRM 25.5.9.8.7, Previously Disallowed Expense.

Responsibilities of Federal Agencies

  1. The Service is committed to the following:

    1. Issue internal procedures to monitor the cause of untimely payments, implement necessary corrective actions, and promptly address inquiries.

    2. Ensure effective internal control systems are established and maintained as required. Administrative activities required for payments to witnesses are subject to periodic quality control validation to be conducted once annually.

    3. Ensure financial management systems capabilities provide accurate and useful management reports on payments.

    4. Ensure the Inspector General and internal auditors review payment performance and systems accuracy, consistent with the Chief Financial Officers (CFO) Act requirements, and

    5. Ensure timely payments.

Claims for Witness Fees and Travel Expenses

  1. Witness fees and travel expenses are payable upon request to witnesses who are required to appear to give testimony or produce records before Service personnel in compliance with administrative summonses issued under IRC 7602, IRC 6420(e)(2), IRC 6421(g)(2), or IRC 6427(j)(2). Amounts for these fees are prescribed in 28 USC 1821 and are separate from reimbursement of third parties for search, transportation, and reproduction costs for summoned information. This includes a per diem rate and a rate per mile for associated travel. Witness fees and payments for mileage may be made to all summoned witnesses, whether a third-party witness, the taxpayer, or the taxpayer’s employee. Payment may be made whenever a summons is issued, regardless of the investigative state of the matter involved.

  2. Procedures for payment of witness fees and travel expenses are detailed below. Use Standard Form (SF) 1157, Claims for Witness Attendance Fees, Travel and Miscellaneous Expenses (Original), for this purpose.

    1. The witness should prepare SF 1157 with the assistance of a Service employee, if necessary, and sign in block 9. The name of the taxpayer should be shown under the name and case number in lines d and e, Part I, unless there is an assigned, non-SSN case number. Do not use the taxpayer's Social Security Number (SSN) in line e. The Service examiner before whom the summoned party appears should review the claim and sign on line 3, Part I and complete all information in Part III to indicate approval for payment.

    2. The fees paid to a witness are taxable income and, if the applicable dollar threshold is met during the year, a Form 1099 will be issued. The Social Security Number of the witness must be included on SF 1157 next to their name on Line 1 of Part 1 -- Attendance Certification.

    3. Forward SF 1157 through channels to the appropriate Business Unit Budget Analyst for review and completion of the information in Parts I and III. The Budget Analyst will forward the request to Beckley Finance Center for payment.

    4. When the person summoned demands assurance or guarantee that payment will be made, prepare an additional copy of SF 1157 and give the copy to the person. Insert the following statement: Payment of witness fees and travel expenses as stated above are guaranteed by the Internal Revenue Service immediately above the space for approval.

  3. If the person summoned cannot comply unless travel expenses are provided, then make an advance payment, not to exceed the amount allowable. Use the following procedures:

    1. Prepare SF 1157 in the name of the witness and enter the date scheduled for testimony on the line provided. Mark the original and any copies as Advance Payment and forward to the appropriate Business Unit Budget Analyst for review. The Budget Analyst will sign and forward to Beckley Finance Center for payment processing.

    2. When the advance payment covers only a part of the allowable fees and travel expenses, the SF 1157 submitted for the remainder of the allowance will bear a reference to the SF 1157 covering the advance payment.

Basis of Payment

  1. Payment for search, reproduction, and transportation costs will be made only to third parties served with a summons to produce third party records or information and only for material requested by the summons, unless the records are available to the general public.

  2. Make payment only for search, reproduction, and transportation costs that are both directly incurred and reasonably necessary. To determine whether costs are reasonably necessary, it is essential to consider search, reproduction, and transportation costs separately.

  3. Do not make any payment until the third party satisfactorily complies with the summons.

    Note:

    Enforcement of the summons due to a third party's partial summons compliance can be made.

  4. Do not make any payment unless the third party submits an itemized bill or invoice showing specific details concerning the search, reproduction, and transportation costs. Information that a third party must include on the invoice is discussed in section IRM 25.5.9.8.1, Review of Form 6863 (Section A)

Obligational Payment Authority

  1. Effective August 8, 1997, Delegation Order 25–6 grants authority to obligate appropriated funds for payment of search, reproduction, and transportation costs in connection with third party summonses issued under the Internal Revenue laws. Each examiner should review their individual operating unit's Delegation Order to determine who has authority to obligate funds and to what dollar level.

  2. Before issuance of a summons, make a reasonable estimate of the obligational authority level required for payment of the witness' costs for compliance with the summons. If the examiner does not have obligational authority for the expected costs, initiate the necessary administrative action to have the appropriate official approve the estimated costs of compliance prior to issuance of the summons.

  3. Consider the need for the information sought in relationship to the anticipated costs of compliance.

  4. Ensure Part B of the summons accompanies service of any summons and provide the witness with Form 6863, Invoice and Authorization for Payment of Administrative Summons Expenses. Upon full or satisfactory compliance with a summons, inform the witness that Form 6863 may be used to request reimbursement and provide the examiner's office address for billing.

  5. A third party invoice resulting from compliance with a summons which is $25 or less ($100 or less for revenue officers) may be paid in cash by the issuing examiner with obligational authority. This threshold does not include amounts which are claimed separately as witness fees and mileage. Input a claim for reimbursement under Miscellaneous Expenses on the travel voucher and provide a copy of the third party invoice with the signed voucher. This expense type may be claimed in conjunction with local or city-to-city travel expenses, and may not be claimed as the only expense on the travel voucher. Prior to paying the witness and signing the travel voucher:

    1. Ensure the invoice itemizes the specific details of search, reproduction and transportation costs and that charges are at authorized rates.

    2. Forward a copy of the invoice to the official who initially approved the obligation or the official with obligation authority appropriate to the amount of the bill if other than the examiner.

    3. The obligating official will evaluate the charges in terms of accuracy and reasonableness and certify the bill for payment processing by signing the following statement: "Payment is approved and is within my delegated obligational authority," and print their title and organizational identification.

Information Received by Electronic Storage Media

  1. Whenever possible, encourage witnesses to submit summoned information via electronic storage media (i.e. CD, DVD, thumb drive, etc.). Witness research and retrieval of information in this format is normally less expensive and takes less time, and ultimately the summons invoice expenses are reduced.

  2. If the witness provides the summoned information via electronic storage media in lieu of paper documents, follow the procedures outlined in IRM 25.5.3.5, Records on Encrypted Storage Media.

  3. If the witness claims expenses for submission of both paper documents and electronic media, verify that the paper records are different from the records provided on the CD. Notate on the invoice NO duplicate records on CD. Only allow the most cost effective expense claimed on the summons invoice when duplicate records are provided. A witness cannot be paid for duplicate reproduction of information. Reflect the appropriate disallowed expenses on Line 16a of Form 6863, Section B, and notify the third party of the adjustment.

    Note:

    If the Service employee requests both electronic and paper copies, the Service must pay for both the electronic and paper copies.

  4. The witness is allowed search costs allowed under the Treas. Reg. 301.7610-1 (i.e. $8.50/hour).

  5. Send an e-mail to *CFO BFC Summons Help Desk when the witness includes a charge for providing the electronic records on storage media and the charges appear questionable.

Information Received by Electronic Transmission

  1. A witness may respond to a summons by providing the summoned information via electronic transmission through a secure service or portal. See IRM 25.5.3.6, Electronic Summons Processes.

  2. The witness cannot claim expenses for paper documents when all summoned information is provided via electronic transmission. Reflect the appropriate disallowed expenses on Line 16a of Form 6863, Section B, and notify the third party of the adjustment.

  3. The witness is allowed search costs under the Treas. Reg. 301.7610-1 (i.e. $8.50/hour).

  4. Send an e-mail to *CFO BFC Summons Help Desk when the witness includes a charge for providing the records by electronic transmission and the charges appear questionable.

Necessary Actions Upon Receipt of Witness Invoice

  1. Upon receipt of an invoice at an IRS office, an employee should date stamp the Form 6863 and forward the form to the examiner for review. If the witness sends an unmarked or unidentifiable content package containing the summoned information prior to the "quash" date and it is opened prematurely and the invoice is date stamped at that time, the examiner should strike over the date stamp and reseal the material received. Re-open the package and re-stamp the invoice the day after the quash period expired. Notate on the Form 6863 the reason for the strike over of the first date stamp.

  2. After a third party witness has satisfactorily complied with a summons, the examiner must review any invoice within seven calendar days of receipt from a witness and either:

    • Return it to the witness for correction, or

    • Forward the invoice to Beckley Finance Center for payment processing.

  3. The examiner is responsible for reviewing Section A for completeness as submitted by the witness. If Section A is found to be complete and accurate, the examiner is responsible for completion and certification of Section B of Form 6863 and timely submission to Beckley Finance Center for payment. Incomplete invoices sent to Beckley Finance Center may delay payment and impair the government's ability to pay the witness timely. Examples of invoice errors which delay invoice processing are:

    1. Untimely submissions

    2. Missing tax identification number

    3. Missing accounting code data

    4. Missing signature and signature dates

      Note:

      Beckley Finance Center will return the Form 6863 to the originating employee if there are missing signatures and signature dates from the payee, the agent/officer, or the approving official.

Review of Form 6863 (Section A)

  1. Several line items of Section A must be completed by the witness for the invoice to be processable. The examiner must review the following Form 6863 Section A lines for completeness of witness preparation:

    1. Line 2 - Payee's Federal Tax Identification Number (TIN): The witness must list their Federal Tax Identification Number (TIN).

    2. Line 3 - Name and Address of Payee: The witness must include their full remittance name and address, to include the zip code.

    3. Line 4 -- Name and Address of taxpayer to whose liability the summons relates: Self-explanatory.

    4. Line 5 -- Payment method: Payment method is required for EFT (electronic funds transfer) direct deposit per Debt Collection and Improvement Act; however, the IRS examiner should not hold the Form 6863 to obtain this information. Beckley Finance Center will pursue any needed information that is missing.

    5. Line 6 - Service/Financial Records Provided: The witness must provide the applicable required information; (i.e., the hours spent searching for the documents, the actual cost of extracting electronic information, number of paper copies, transportation cost to deliver records, and other expenses), along with any other details which substantiate the claim.

    6. Line 7 - Printed Name of Financial Institution Official or Payee: Self-explanatory

    7. Line 8 - Title and Business E-mail Address: The Title of the authorized employee of the witness is the only required item. An e-mail address is not required for processing.

    8. Line 9 - Signature of Financial Institution Official or Payee: A signature is required for payment processing.

    9. Line 10 - Date Signed: The witness must date Form 6863.

    10. Line 11 - Telephone Number: A contact number is required.

  2. After a witness has satisfactorily complied with a summons, if any of the information in the lines listed in paragraph (1) is missing or incomplete on the Form 6863 received from the witness, the examiner must return the invoice to the witness within seven calendar days with a document identifying the lines the witness must complete in order for the invoice to be processed. The examiner can complete the missing information if known or if obtained from the witness telephonically. However, if the examiner does not know and cannot complete the missing information themselves and the invoice is not returned to witness and documented within seven days of the date stamp, the examiner must obtain the missing information and process the invoice for payment immediately.

    Note:

    The examiner can secure the missing line items verbally from the witness, but verbal communication does not extend the seven day time frame to return the invoice to the witness. The examiner must still return the incomplete invoice to the witness within seven calendar days.

  3. Section A of Form 6863 does not require information on Lines 1, 5, and 8b from the witness in order to be processed for payment. The invoice cannot be returned to the witness for corrections or invoice processing delayed if the following lines are not completed:

    1. Line 1 - Payee's Invoice Number: The witness can assign their own unique invoice number. This is helpful to monitor and track for accounting control purposes.

    2. Line 5 - Payment Method: The witness completes this section in order to receive payment via Electronic Funds Transfer (EFT).

    3. Line 8b - Title and E-mail address: The title is required. An e-mail address is not.

  4. When a previously incomplete invoice is returned by the witness, follow the above process to review and process the invoice. Notate on the face of the Form 6863 the reason for more than one date stamp on the Form 6863.

Examiner Authorization and Certification of Form 6863 (Section B)

  1. The examiner has responsibility for completion and certification of Form 6863 Section B. The examiner must certify and forward the invoice according to operating unit guidelines, or to Beckley Finance Center within seven calendar days of receipt of a correct and accurate invoice from a witness, provided the witness has satisfactorily complied with the summons.

  2. The examiner will review amounts claimed by the witness for reproduction costs and determine if they are appropriate. The examiner must enter the appropriate information in the following lines of Form 6863 Section B:

    1. Line 12 - Date Summons Issued: Enter the date the examiner issued the summons to the third party

    2. Line 13 - Date Complied With: Enter the date the witness satisfactorily complied with the terms of the summons.

    3. Line 14 - Date Invoice Received: Enter the date that a perfected and accurate invoice is received from the witness. Do not use the date an invoice with missing or incomplete information was received. Use the date the invoice containing all required witness line items in Section A was received. Although this can be the same as the date stamp date, it is not always the same.

    4. Line 15 - Total Amount Claimed: Enter the total amount claimed by the witness from line 6g.

    5. Line 16a - Disallowance (if any): Review the reimbursement amounts claimed by the witness. If any amounts are inappropriate or incorrect (i.e., incorrect hourly rate, incorrect number of documents claimed versus amount actually received, duplicate information received by both electronic and paper means), enter the dollar amount to be disallowed. If the amount shown by the witness on line 6g and entered on Line 15 is correct, enter "$0" .

      Note:

      It is the examiner's responsibility to notify the third party when a claim is reduced, explaining the amount disallowed and the reason for the disallowance.

    6. Line 16b - Disallowance reason: Briefly explain the disallowance amount (i.e., incorrect hourly rate, incorrect number of documents claimed versus amount actually received, duplicate information received).

    7. Line 17 - Amount to Payee: Subtract Line 16a from Line 15 and enter the total.

    8. Line 18 - Accounting Classification: Enter the Requisition Number or Cost Center and Functional Area codes. The accounting codes change annually to reflect charges to the new fiscal year. Contact your area Budget Office for assistance to obtain the correct codes.

    9. Lines 19 through 23 - Certification: Self-explanatory. Enter information as the examiner and sign on Line 22.

    10. Lines 24 through 28 - Certification: Self-explanatory. The examiner enters their information and signs on Line 27 if they have obligational authority. If the obligating official is someone other than the examiner, route the Form 6863 for that person to enter their information and sign on Line 27.

      Note:

      Complete Lines 19 through 28 even if the examiner is the same person certifying in both areas. The first certification indicates articles and services were received, and the second certification is for the obligation of funds.

    11. Line 29 and 30: Before transmitting the invoice to Beckley Finance Center, mark the manner of submission and the date the invoice is submitted.

Summoned Information Received Without An Invoice

  1. Process witness invoice submissions in formats other than Form 6863 in the same manner as Form 6863. Provided the witness has satisfactorily complied with the summons, the examiner must review the invoice within seven calendar days to ensure all items required in Section A are contained on the invoice. If so, use the steps in the following table to process the invoice for payment:

    Step Action
    1 Complete and certify Section B of Form 6863.
    2 Attach the witness' invoice to Form 6863.
    3 Write "See attached invoice" in the "Signature of financial institution official or payee" line of Section A.
    4 Transmit the documents to Beckley Finance Center as described in IRM 25.5.9.8.5, Invoice Submission to Beckley Finance Center.
  2. If the invoice does not contain all required information, refer to IRM 25.5.9.8.1, Review of Form 6863 (Section A), for necessary actions to correct or return the invoice for completion and perfection by the witness.

Invoice Processing Table

  1. The following table provides guidance on processing invoices from the point of initial receipt by the examiner:

    If And Then And
    Section A contains all required information all documents and information required by the summons is received complete and sign Part B of Form 6863 send to Beckley Finance Center for payment.
    An invoice is received without Form 6863 all information required by the summons is received staple the invoice to Form 6863 and write "see attached invoice" in the witness signature area of Part A. Complete and sign Part B of Form 6863 send to Beckley Finance Center for payment.
    Section A contains all required information only partial documents and information required by the summons is received the request for payment may not yet be processed notify the witness that no request for payment may be processed until the witness has satisfactorily complied with the summons. Also, notify the witness in writing of the additional documents and information required by the summons.
    Section A does not contain all required information no information, partial information, or all information required by the summons is received return the invoice to the witness with specific instructions on what needs to be done to perfect the invoice and any additional information required by the summons; document on the Form 6863 with the date of return to the witness (i.e.: "Form 6863 returned to witness 3/31/14") wait to receive satisfactory compliance with the summons and a perfected invoice from the witness before submitting anything to Beckley Finance Center for payment.

Invoice Submission to Beckley Finance Center

  1. The preferred method for invoice submission to Beckley Finance Center is by fax or by transmitting the scanned invoice via e-mail. Transmittal information is as follows:

    • Fax an invoice to (855) 787-4385, (855) 787-4388, (855) 787-4389, or (855) 787-4818

    • E-mail scanned invoices to *CFO BFC Invoice Link

    If either option is used, do not forward or mail a copy of the original invoice to Beckley Finance Center in any other manner. Retain the original invoice in the case file.

  2. The least preferred method for submission of an invoice is by mail or private delivery service at:

    Mailing Address Private Delivery Service Mailing
    Internal Revenue Service
    Beckley Finance Center
    P O Box 9002
    Beckley, WV 25802
    Internal Revenue Service
    Beckley Finance Center
    110 North Heber Street
    Beckley, WV 25802
  3. Once the invoice is submitted to Beckley Finance Center, the invoice at Beckley is considered the "original invoice" and is subject to invoice retention standards. A copy of the invoice is maintained with the case file and is subject to the same retention standard as the rest of the case file.

  4. Include any third-party detailed invoice with the Form 6863. It is not necessary to include a copy of the summons.

  5. If a Form 6863 was already submitted to Beckley Finance Center and an error is found, do not send a corrected form without first contacting Beckley Finance Center at (304) 254-3300, or sending an e-mail to *CFO BFC Summons Help Desk. This eliminates the possibility of a duplicate payment. Follow the instructions given by Beckley Finance Center to correct the original invoice.

Duplicate Invoices or Witness Payment Inquiries

  1. Do not send duplicate copies of invoices to Beckley Finance Center. If the original was faxed or e-mailed, retain the original in your case file and do not mail or re-transmit the original in any manner to Beckley Finance Center. A duplicate Form 6863 transmittal, in any manner, regardless of how the original invoice was transmitted, may result in duplicate processing and payment to the witness.

  2. Process witness inquiries received using one of the following options.

    • Communicate to the witness to contact Beckley Finance Center at (304) 254-3300, or

    • E-mail an employee communication concerning duplicate invoices or witness payment to *CFO BFC Summons Help Desk.

    Note:

    Do not transmit the invoice to Beckley Finance Center using normal routing procedures.

  3. Write in bold letters "Duplicate Invoice Inquiry" or "Witness Payment Inquiry" across the face of the Form 6863 for any suspected duplicate invoice or witness payment inquiry communication that contains a copy of the invoice. If the examiner still has a copy of the original invoice, the original submission manner and date must be clearly indicated on Form 6863 Lines 29 and 30 and include the appropriate bold letters across the face.

  4. If the witness submits two invoices for the same case but on different dates and you suspect or it appears to be a duplicate, determine if the invoice is duplicate and already transmitted to Beckley Finance Center. If so, follow the guidance in paragraph (2).

    Note:

    Do not complete Section B and resign or recertify a copy of Form 6863 received with a witness' payment inquiry.

Previously Disallowed Expense

  1. After submitting the invoice to Beckley Finance Center with a disallowed expense, the examiner may reconsider the disallowed expense after receiving additional information.

  2. Write in bold letters "Reconsideration of Disallowed Expense" on the face of the Form 6863.

  3. Change Line 16a of Form 6863, Section B and notate the expense now allowed.

  4. E-mail the scanned invoice to *CFO BFC Summons Help Desk.

Inter-Area Courtesy Summons

  1. Special procedures apply to courtesy summonses served in another area.

    1. When one area requests a summons to be served by another area, the obligating authority official in the initiating area will obligate funds for the payment of that summons. The requesting area will forward a completed summons, exclusive of the time and place for appearance and the agent before whom the witness is to appear. The transmittal document or Courtesy Investigation accompanying the summons should indicate the level of obligation authority and Form 6863 with the appropriate Office and funding codes.

    2. If the serving office anticipates costs to exceed the obligational amount of the official indicated, the serving employee in the receiving area will advise the requesting area of the need for the approval of an official with higher obligational authority.

    3. The Service employee of the area serving the summons and the issuing official of the requesting area should coordinate to determine that compliance has occurred.

    4. Within four calendar days of receipt from the witness who has satisfactorily complied with a summons, the serving employee will review the invoice for completeness as described in IRM 25.5.9.8.1, Review of Form 6863 (Section A). If invoice corrections are needed, the serving employee will fax or e-mail the invoice to the originating official in the requesting Area within four calendar days of invoice receipt or return the invoice to the witness for corrections within seven calendar days of receipt.

    5. Provided the witness has satisfactorily complied with the summons, the issuing official will review, certify for payment, and forward to Beckley Finance Center for payment processing within seven calendar days of original invoice receipt.

Additional Invoice Processing Information

  1. Instructions for using Form 6863, Invoice and Authorization for Payment of Administrative Summons Expenses, are found on page two of the form.

  2. If a petition to quash the summons is received timely and the summoned records have not been examined for completeness, the Form 6863 invoice cannot be paid. A timely petition to quash prevents the examiner from viewing the records to determine if the summons is satisfactorily complied. When a petition to quash is received timely, the examiner will:

    • Keep a copy of the invoice with the administrative file.

    • Send the original invoice back to the witness with a cover letter explaining that a petition to quash the summons was received and that we cannot pay the invoice until we can view the records to determine if the summons was satisfactorily complied.