3.8.45 Manual Deposit Process

Manual Transmittal

December 02, 2016

Purpose

(1) This transmits revised IRM 3.8.45, Deposit Activity - Manual Deposit Process.

Material Changes

(1) Throughout the IRM are editorial changes to make the IRM more clear. Substantial changes to the text are as follows:

  1. IPU 16U0841 issued 05-02-2016, IRM 3.8.45.1.1(5) - Updated information for returning $100 Million checks to the taxpayer and supplying HQ Analysts with needed contact information.

  2. IPU 16U0874 issued 05-06-2016, IRM 3.8.45.1.1(5) - Updated information for returning $100 Million or more checks to the taxpayer providing further guidance concerning retention, routing of form 4868 and processing multiple checks returned by the taxpayer.

  3. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.1.1(5)c - Deleted reference for when the taxpayer returns multiple checks to pay their tax obligation as a result of receiving the letter IRS sent returning a $100 Million or more check (within 30 days of the date of the letter) and processing with the original received date the $100 Million or more check was received. Checks received as a result of the letter should now be given the actual received date the checks are received back from the taxpayer.

  4. IPU 16U1402 issued 09-19-2016, IRM 3.8.45.1.3.1(1) - Clarified reference that any Submission Processing employee with IDRS access assigned duties in the restricted area of Receipt and Control must have Restricted IDRS access.

  5. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.1.7(4) - Added reference to reporting loss of PII information to Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office (IM).

  6. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.1.9.3(2) - Updated reference with new link to the Contractor Security Management website information needed for completing background investigations for the courier contractors. Also updated with the new link to the Automated Background Investigation System (ABIS) Website.

  7. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.1.9.6 - Updated the title of the reference as the word Technical has been removed from the title of Contracting Officer’s Technical Representative (COTR). The title now is Contracting Officer’s Representative (COR). The title and abbreviation has been changed throughout the IRM.

  8. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.1.9.6(6) - Updated reference with new link to the Contractor Security Management website information needed for completing background investigations for the courier contractors. Also updated with the new link to the Automated Background Investigation System (ABIS) Website.

  9. IPU 16U0743 issued 04-18-2016, IRM 3.8.45.1.9.6 - Updated reference that an email can be sent to the courier contractor with the Annual Memorandum For All Courier Service Contractors and the Annual Courier Security Briefing package in lieu of sending with a Form 3210. An email can also be sent back from the courier acknowledging receipt of the package in lieu of a signed Form 3210.

  10. IPU 16U1402 issued 09-19-2016, IRM 3.8.45.1.9.6(6) & (7) - Added guidance pertaining to CORs responsibilities for initiating Background Investigations for Courier Contractors.

  11. IPU 16U0431 issued 03-02-2016, IRM 3.8.45.4.3(1)a - Added reference to NOT Stamp a Money Order “Non Negotiable” when returning to the taxpayer.

  12. IPU 16U0380 issued 02-22-2016, IRM 3.8.45.4.5(1) - Added instructions to research taxpayer’s account when the written and numeric amounts on the check are different and they do not match the money amount on the source document or there is no source document. Research for a payment pattern and if it matches either the written or numeric amounts on the check, process with that amount. If a pattern is not found, process the payment with the written amount.

  13. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.6.20.1(1) Note - Added Note for referencing address for sending payments when EP/EO Determination Letter Application User Fees Remittances are received with Form 3115 and the Exempt Organization Box is not checked.

  14. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.6.21(2) Note - Added Note for referencing address for sending payments when EP/EO Determination Letter Application User Fees Remittances are received with Form 3115 and the Exempt Organization Box is not checked.

  15. IPU 16U0657 issued 04-01-2016, IRM 3.8.45.6.21.2(2) - Updated reference to include Form 1963 for routing payments to Accounting for User Fees for Letter Rulings, Determination and Option Letters.

  16. IPU 16U1402 issued 09-19-2016, IRM 3.8.45.6.28(5) - Clarified that return/documents received with a Split Remittance can be for more than one taxpayer.

  17. IPU 16U0657 issued 04-01-2016, IRM 3.8.45.6.29(1) - Deleted reference stating that depositories have agreed that all checks over $50 Million should be processed using Manual Deposit. Added reference that all checks should be deposited through ISRP if possible. Checks $50 Million or more should be tagged to be easily identifiable by the depository bank.

  18. IPU 16U0457 issued 03-07-2016, IRM 3.8.45.6.29(6) - Updated table with contact information changes provided by US Bank for reporting checks deposited for $50 million or more.

  19. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.7.8(1) - Added information concerning the Taxpayer Bill Of Rights (TBOR) and the obligation of the IRS to consider those rights when corresponding to taxpayers.

  20. IPU 16U0841 issued 05-02-2016, IRM 3.8.45.7.23(15) - Added reference to route Form 4868 to Batching when received with a check for $100 Million or more that must be returned to the taxpayer.

  21. IPU 16U0743 issued 04-18-2016, IRM 3.8.45.7.28(4) - Updated editing instructions for Form 7004.

  22. IPU 16U0380 issued 02-22-2016, IRM 3.8.45.7.30 - Updated instructions for FTD payments received at a campus, to return the payment to the taxpayer with a letter stating that FTD payments are required to be made electronically through the Electronic Federal Tax Payment System (EFTPS).

  23. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.7.36(8) d & e - Clarified that these two references pertain to cash received with a rejected Form 4506.

  24. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.7.37 - Deleted reference to CDs and replaced with DVDs that are now produced for Exempt Organization Photocopy Fee Returns. Also updated the name of Form 4506-A.

  25. IPU 16U0457 issued 03-07-2016, IRM 3.8.45.9.1(3) - Updated Designated Payment Code listing with DPC 61=Offshore Streamlined Filing Compliance Payment.

  26. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.9.4 - Added Note concerning Affordable Care Act (ACA) payments received in the ACS PO Box. Process payments following instructions in IRM 3.24.133-3(16).

  27. IPU 16U0657 issued 04-01-2016, IRM 3.8.45.9.5(4)e - Added NOTE with reference to new IAT programming for ACS payments in Status 60 for determining the Designated Payment Code after researching Command Code IADIS.

  28. IPU 16U0743 issued 04-18-2016, IRM 3.8.45.9.5(4) e - Corrected NOTE in previous Material Change issued on 04-01-2016. The two references to the last two digits in the Agreement Locator Number should be 08 and not 05.

  29. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.10.2 - Added sentence to provide examples of identifying an Installment Agreement.

  30. IPU 16U0657 issued 04-01-2016, IRM 3.8.45.10.4(1) - Updated reference concerning Unidentified corrections that must be made by the Unidentified Team in Accounting. Receipt and Control has IDRS Command Code restrictions that prevent them from inputting corrections. Coordinate with Accounting for correcting errors as they must be made on the same day to avoid balancing issues.

  31. IPU 16U1402 issued 09-19-2016, IRM 3.8.45.10.8(1) & (2) - Updated references to use the IAT Tool Quick Command Code (CC) feature as the preferred method for input of IDRS Command Code STAUPS for Foreign Deposits. Also deleted NOTE allowing Hard Core Payment Tracers to perform the STAUP process in Receipt and Control due to restrictions that must be placed on an employee’s IDRS profile when working in the restricted area of Receipt and Control.

  32. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.13.1(3) - Concerning External Leads Refund Repayments, added reference that the 24 hour deposit standard should be adhered to for the preparation of the Accounting Package by Manual Deposit of Form 3245 received from IVO and release to Accounting for input.

  33. IPU 16U0431 issued 03-02-2016, IRM 3.8.45.15(3)k - Bank of America has a new address to send foreign deposits. This reference has been updated to reflect that change.

  34. IPU 16U1402 issued 09-19-2016, IRM 3.8.45.15(6)(f) - Clarified that the OTCnet Confirmed date or Rejected date should be documented in the Foreign Deposit Log.

  35. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.17 - Updated instructions for Refund Repayments to be processed through ISRP instead of Manual Deposit for IMF and BMF.

  36. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.17.1 - Added subsection with instructions for Refund Repayments that must be processed through Manual Deposit such as NMF.

  37. IPU 16U0380 issued 02-22-2016, IRM 3.8.45.28.15 - Updated instructions for the Voluntary Classification Settlement Program (VCSP) payments to now be processed at the Cincinnati Submission Processing Campus (formerly the Ogden Submission Processing Campus), with the move of the program from the GECU Government Entities Compliance Unit (GECU) in Ogden to the Centralized Employment Tax Unit (CETU) in Detroit.

  38. IPU 16U0743 issued 04-18-2016, IRM 3.8.45.28.17(2) - Added element number (16) to the IRM 3.24.133-3 reference.

  39. IPU 16U0457 issued 03-07-2016, IRM 3.8.45.31 - Updated reference with changes for posting Expanded Streamlined Filing Compliance Program payments. Payments should now be posted with Designated Payment Code 61 (previously 24) and all tax year’s previously referenced as 2013 should be processed to tax year 2014 (Austin Only).

  40. IPU 16U0657 issued 04-01-2016, IRM 3.8.45.31(2) 12 & (3)8 - Deleted references to tax year 2013 and updated with tax year 2014 for posting Expanded Streamlined Filing Compliance Program payments (Austin Only).

  41. IPU 16U1651 issued 11-07-2016, IRM 3.8.45.34 - Deleted reference to the Project Management Office for Ramp Down procedures and replaced with Headquarter Submission Processing. Also added Actions Required references for OTCnet updates and ATP SharePoint changes.

Effect on Other Documents

IRM 3.8.45 dated December 8, 2015 (effective January 1, 2016) is superseded. The following IRM Procedural Updates (IPUs) issued from February 22, 2016 through November 7, 2016 have been incorporated in the revised IRM: 16U0380, 16U0431, 16U0457, 16U0657, 16U0743, 16U0841, 16U0874, 16U1402 and 16U1651.

Audience

This IRM prescribes procedures for all Submission Processing Manual Deposit operations, including Payment Perfection processing. Although written for Submission Processing employees, internal controls for remittance security are applicable for any functional area processing remittances.

Effective Date

(01-01-2017)

Related Resources

IRM 3.8.44, Campus Deposit Activity

Submission Processing Website http://win.web.irs.gov/SP/

IRM 3.8.46, Discovered Remittance

IRM 3.8.47, Manual Deposit Process for Field Office Payment Processing

IRM 3.0.167, Losses and Shortages

Document 6209, IRS Processing Codes and Information, available on http://serp.enterprise.irs.gov/databases/irm.dr/current/6209.dr/6209minitoc.htm

All employees and managers of remittance handling operations must familiarize themselves with the following manuals to ensure accuracy, timely deposits, and adherence to internal controls:

  1. IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

  2. IRM 10.2.11, Basic Security Concepts

  3. IRM 10.2.13, Information Protection

  4. IRM 10.2.14, Methods of Providing Protection

  5. IRM 10.2.15, Minimum Protection Standards (MPS)

  6. IRM 10.8.34, IDRS Security Controls

Managers of the Deposit Function must also be familiar with IRM 1.4.6, Resource Guide for Managers, Managers Security Handbook; IRM 10.2.1, Physical Security; and IRM 10.6.1, Continuity Planning Requirements.

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Introduction Scope

  1. This IRM provides administrative directives and processing procedures for remittances in Campuses' Deposit Operations. Administrative directives include cash management, managerial product review, security, and reporting responsibilities.

  2. Obsolete forms and/or documents are mentioned throughout this IRM. Although these forms/documents are obsolete, campuses may occasionally continue to receive them with payments of taxes.

  3. All employees and managers of the Deposit Function must familiarize themselves with the following manuals to ensure accuracy, timely deposits, and adherence to internal controls:

    1. Document 12990, Records and Information Management Records Control Schedules

    2. IRM 3.0.167, Losses and Shortages

    3. IRM 3.8.44, Campus Deposit Activity

    4. IRM 3.8.46, Discovered Remittance

    5. IRM 3.8.47, Manual Deposit Process for Field Office Payment Processing

    6. IRM 3.10.72, Receiving, Extracting and Sorting

    7. IRM 3.24.133, Residual Remittance Processing System

    8. IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

    9. IRM 10.2.11, Basic Security Concepts

    10. IRM 10.2.14, Methods of Providing Protection

    11. IRM 10.2.15, Minimum Protection Standards (MPS)

    12. IRM 21.3.3, Incoming and Outgoing Correspondence/Letters

    13. Document 6209, IRS Processing Codes and Information

  4. In addition, managers of the Deposit Function must also be familiar with:

    • IRM 10.2.1, Physical Security

    • IRM 1.4.6, Resource Guide for Manangers, Managers Security Handbook

  5. See IRM 3.8.45.32 for a Definition of Terms listing.

  6. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2., Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

Cash Management Responsibilities

  1. The Service is committed to ensuring a 24 hour deposit standard. As we move toward attaining that goal through improved technology, it is of the utmost importance to deposit the largest amount of money in the shortest possible time frame in order to maintain good cash management practices. Management at all levels must monitor the flow of receipts to ensure that this objective is achieved as although the 24 hour cycle can be extended during peak seasons we are still striving to ensure the 24 hour deposit standard is achieved.

    Note:

    Remittances received on Saturday, Sunday and holidays need not be deposited until the next business day (the day following the weekend/holiday).

  2. The Receipt and Control Operation is responsible for the receipt, safeguard, accuracy, and timely deposit of all monies received in payment to the Government through Internal Revenue Service. Maintaining the integrity of the IRS received date is required. Credit all payments for the earliest date received by IRS or Department of Treasury.

  3. All remittances of $100,000.00 or more must be deposited on the day of extraction. If the remittance is extracted after the daily cut-off time for processing the daily deposit, the remittance must be deposited with the next scheduled deposit that will be delivered to the depository.

  4. All remittances of $50,000.00 and up to $99,999.99 must be deposited by the next business day (excluding Saturdays and Sundays). During peak periods identified in (5) below, all attempts must be made to deposit these items the same day of extraction or no later than the next business day.

  5. Beginning 1/1/2016, remittances of $100 million or more will not be accepted from taxpayers. The remittance will be returned to the taxpayer by overnight mail if an address is provided or by certified mail if only a PO Box Number is available, informing them that the IRS can no longer accept a single check, money order or cashier’s check for $100 Million or more. The check should be stamped “Non-Negotiable”. The Federal Reserve Bank and Treasury General Accounts (TGA) depositories will no longer accept these checks, therefore the IRS cannot deposit these checks. The check will be returned by the depository bank to the IRS campus if deposited. Taxpayers should be instructed in the return letter to follow guidance at www.IRS.gov/payments for making same day wire payments or submit multiple checks, money orders or cashier’s checks to pay their tax obligations. When making same day wire payments at www.IRS.gov/payment, midway down the page, click on "Same Day Wire Payments". Read the instructions carefully and check on "Same Day Taxpayer Worksheet." Complete the worksheet and take to your financial institution. Note: If there is more than one tax year or tax period, complete a separate worksheet for each payment. If payment is returned with multiple checks, enclose a copy of this letter along with your payment.

    Note:

    The campus must notify HQ Analyst Rick Holmes and Cathy Andrews by email when a check for $100 million or more is received. The email must contain a copy of the check, if received with an extension a copy of the extension, and the following information:
    -Campus Name
    -Date Received At Campus and is it Timely or Not Timely
    -Money Amount
    -Taxpayer SSN, Name, Contact Number and Form Type (1040, 4868, etc.)
    -Tax Preparer Name and Contact Number
    -IRS Received Date If Received From Another IRS Office and Name of Office
    -Date Returned To The Taxpayer, address, Overnight or Certified Mail Tracking Information, and any remarks that may be needed.


    1. Retain copies of the check, forms and letter returned to the taxpayer for one year following the end of the processing calendar year.

    2. If a Form 4868 is received with a check of $100 million or more, the extension must be routed to the Batching function following instructions in IRM 3.8.45.7.23(3), (4) and (5).

  6. The extended cycle for the April peak completion date, for depositing receipts, is determined by the Wage and Investment Operating Division and sent to the Campuses thru memorandum.

  7. During the following mini-peaks or when the remit receipts in the Deposit Function exceeds the deposit capacity, the deposit cycle may be extended two business days. However, the extended cycles must not exceed 5 business days. See IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

  8. The deposit cycle may be extended to a maximum of three business days during the January, April, July and October 31 periods when business returns are received.

  9. Schedule two deposit pickups during peak. Daily scheduled receipts must be based on prior year actual receipts.

  10. In the event there will not be a deposit or if the dollar amount of the deposit will be significantly affected due to an unplanned situation or event, the Operations Manager for Receipt and Control or designee must immediately inform the Headquarters Deposit Analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as soon as it becomes evident there will not be a deposit for the day. When deposit operations resume, inform the Deposit Analyst of the item count and dollar amount of the next deposit. You must also include if you are back on your 24 hour deposit cycle and, if not, when you expect to be timely. Headquarters contacts are listed on the Submission Processing website. If unable to contact the designated Headquarters Submission Processing analyst, please call the Bureau of the Fiscal Service (BFS) (formerly the Financial Management Service (FMS)): ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ first or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Managerial Responsibilities (Product Review of Final Deposit)

  1. Receipt and Control deposit managers are responsible for ensuring the deposits are released as a quality balanced product.

    Note:

    OUT-OF-BALANCE CONDITIONS MAY NOT BE RELEASED TO DEPOSITARIES.

  2. Deposit managers must perform regular reviews of completed work accumulated in final deposit area.

  3. The review will be conducted on 5 percent of the remittances during non-peak periods.

  4. After Pass 2 on the transport, fan the lower right corner of the block of remittances verifying Magnetic-Ink Character Recognition (MICR) encoded amount agrees with written amount of remittances. Review remittances for breaks in MICR encoded digits and for improper encoding, for example, encoded upside down. Also review the first and last check to ensure the audit trail is complete and legible.

  5. Deposit managers or appointed representatives, must conduct a 100 percent review of deposits prior to release on a given day of each week. This must be continued until deposits are 100 percent accurate on a regular basis and controllable deposit discrepancies are below 100 cumulative items.

  6. Prepare an action plan for conducting the reviews.

    1. Schedule review dates. (The same day of week should not be used on a regular basis. If there is more than one shift, include the various shifts.)

    2. Initiate action if the 24 hour deposit cycle is missed.

    3. Record any unbalanced blocks, slipped blocks, encoding errors, piggy back checks, etc.

    4. Provide employee feedback.

    5. Provide additional training if necessary.

  7. Schedule a meeting with Accounting Operations when necessary to review discrepancies occurring from the 100 percent Product Review dates. All discrepancies must be recorded and follow-up action annotated accordingly.

Security Responsibilities

  1. Deposit managers must communicate all security standards contained in IRM 10.2.11.7.6, Remittance Processing Areas and IRM 10.2.14.6.3, Control and Safeguarding of Keys and Cipher Lock Combinations, to their employees at least once a year. All employees and managers of the Internal Revenue Service and Treasury are accountable for remittances under their control, including security.

  2. Deposit managers must ensure adherence to all security standards and internal controls in IRMs: IRM 10.2.15, Minimum Protection Standards (MPS);IRM10.2.11, Basic Security Concepts; IRM 10.2.14, Methods of Providing Protection, IRM10.2.13, Information Protection; and this manual. Interim guidance and procedures regarding physical or remittance security must be implemented immediately. Interim guidance or procedures may be issued through official memorandums or Servicewide Electronic Research Program (SERP) Feedback, Alerts and Updates.

  3. Adequate security equipment and facilities must be provided to safeguard money, securities, etc., handled in the Deposit Activity Function. Managers will contact appropriate Agency-Wide Shared Services (AWSS) Security Representative, or Campus' Security Function for additional advice or assistance on security matters (refer to IRM 10.2.11, Basic Security Concepts). Money chests, vaults or cabinets affording adequate security must be available in restricted area of Campus' Deposit Activities. These containers must comply with requirements contained in IRM 10.2.14.3, Containers.

  4. The following items are strictly prohibited from the secure Receipt Processing area:

    • Lunch bags/Lunch boxes

    • Purses

    • Backpacks

    • Briefcases

    • Sports Bags

    • Hats

    • Shopping Bags

    • Shoulder Totes

    • Fanny Packs

    • CD or Tape Cases

    • Books

    • Newspapers, magazines, and

    • Similar type items

  5. Random Reviews of All Persons in the Secured Area. First line managers or a designated representative will conduct and document monthly random reviews of employee compliance with all security policies as they relate to personal belongings in the secure remittance processing areas. The reviews must include each employee at least once during the month. The review will be completed at the beginning of the shift and/or upon entrance to the secure receipt processing area. Management shall maintain documentation that includes the date, unit number, employee name, description of item(s) found (if no findings, mark "None" on the review check sheet) and the reviewer's initials. See Exhibit 3.8.45-2.

    Note:

    If there is a medical or religious "exception" to any of the items listed in IRM 3.8.45.1.3(4) above, notate that in the "Comments" section (e.g., "allowed to wear hijab/burqa/kippah/yarmulke" , "needs medical supplies in ice pack bag" , etc.).

  6. Provide each teller/cash clerk with a separate lockable money bag, cash box, or compartment. Each container should be equipped to be opened only by a separate key or combination.

  7. The teller/cash clerk or remittance perfection technician will lock the safe, vault, money chest, or other receptacle or facility provided therein to store funds or other valuables including the door of the teller's/cash clerk's working area whenever the working area is left unattended, refer to IRM 10.2.14, Methods of Providing Protection.

  8. Part 1 of Standard Form 700 is required to be posted inside security containers. This includes high level security containers and safes storing Form 809, Receipt for Payment of Taxes, monies, and items of value in all remittance processing areas. When completing Form 700, ensure the name(s) of personnel with the combination or keys to respective container is (are) listed on the front of Standard Form 700. The combination and/or duplicate key to lock money chests, vaults, cabinets, money bags, cash boxes or compartments, in which funds are held, will be placed in a sealed envelope for use in the event of an emergency. The envelope (Part III of Form 700) containing a combination and/or duplicate key must be stored under the same protection required for container. The procedures to be followed are the same as Field Office Remittance Processing Area, refer to IRM 10.2.14, Methods of Providing Protection. IRS Offices can place an order for this form at www.gsaglobalsupply.gsa.gov or www.gsaadvantage.gov with either a government purchase card or AAC (Activity Address Code). The Stock Number is 7540-01-214-5372. Current Revision Date: 04/2001.

  9. Change the combination or locks on all containers immediately when one of the following conditions exists:

    1. Upon receipt of new lock.

    2. Whenever there is a change in teller/cash clerk.

    3. When there is an unforeseen absence of the teller(s)/cash clerks/ or any remittance processing individual entrusted with the combination or lock.

    4. When the combination is suspected to be compromised in some other way.

    5. In any event, change combinations at least once a year.

  10. If it becomes necessary to open a teller's/cash clerk's locked compartment in the absence of the teller/cash clerk, two responsible employees will be selected to use duplicate key or combination. They must count the money and prepare a statement of the money and documents found. Both must sign and attach the statement to the receipt that the teller/cash clerk previously signed for the change fund. The monies and documents are then balanced.

  11. Safeguard cash remittances at all times. Keep cash in a locked container or deposit bag to await deposit pick-up after teller's/cash clerk's balancing operation is completed. The key to that container is held by the teller's/cash clerk's immediate manager or other designated employee. Cash conversion to cashier's check or money order are permitted. Use this action in lieu of safeguarding instructions.

  12. The deposit manager or designated employee must conduct periodic unannounced reviews of the items on the Cash Receipts Records and Deposit Tickets monthly, or no less than quarterly. Record when the reviews are completed and the findings. Maintain the records of completed reviews for a year at minimum and include whether an in-depth review is necessary.

  13. Only authorized employees may have access to cash vaults. Restrict all areas in which deposit operations take place in accordance with IRM 10.2.14, Methods of Providing Protection. Any person entering must be given appropriate clearance from a responsible official. Such clearance must be based on satisfactory identification of individual(s) and appropriate reason for entering.

  14. Managers and employees should report any employee or manager suspected of theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484 immediately.

  15. Managers of areas receiving discovered remittances must perform monthly reviews of Discovered Remittance Logs, Form 4287, and take appropriate action to eliminate or reduce mishandling of receipts.

  16. Use of IRS computer equipment and systems such as the Intergrated Data Retrieval System (IDRS) require conformance to security rules. Mandatory briefings are conducted annually regarding these requirements.

  17. The Service requires internal control of tax receipts to ensure security during transit. On rare occasions, Submission Processing Campuses (SPCs) transship remittances through common carrier for processing. Rare cannot be overemphasized! Nearly always, tax receipts must not leave the secured area; rather SPCs are required to process tax receipts on the day of receipt. An example scenario of transshipping a tax receipt (remittance, taxpayer payment) would be a site needing to transship a foreign remittance to a bank for processing. All senders of tax receipts are required to use overnight traceable method to send tax receipts. The use of a completed transmittal, such as Form 3210 Document Transmittal, listing package contents, is required. The name of the sender, return address (with stop number), and telephone number is required on all transmittals. The sender, who is accountable until the funds are received at the destination, must establish a control to ensure delivery of tax receipts and follow up. The control must include amounts of taxpayer receipts by Taxpayer Identification Number (TIN) correlated to the package tracer information. For example, if the transit provider informs IRS that package number 12345-67-89 was destroyed, a control is needed that enables proper identification of impacted taxpayer(s) so that relief can be granted. The sender must follow-up within 2 business days to ensure delivery of the remittance package. Access the carrier's website, i.e., ups.com, or usps.com and trace the package. Follow up with the destination contact within 10 working days if necessary. Immediately report all lost remittance packages to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484. Lost or stolen remittances must also be reported to the campus remittance security coordinator. Lost personally identifiable information (PII) must also be reported to the Situation Awareness Management Center (SAMC) at 1-866-216-4809.

  18. All Service employees must take care to protect PII. Any loss of PII could result in information being compromised to perpetuate identity theft. PII information must be encrypted on computers, email. Sanitize taxpayer PII or use secure messaging. If you suspect or know of a potential information loss, report it to your manager, the Treasury Office of Investigations (TIGTA) at 1-800-366-4484, and the SAMC at 1-866-216-4809.

  19. Unless authorized by Physical Security and Emergency Preparedness (PSEP), the use of a camera or the camera function on a camera capable cell phone/Blackberry or any other electronic device is prohibited in the secure remittance processing area. See IRM 10.8.1.4.1.18.6(1)b and (3),Video and Photographic Technologies. In addition personally owned equipment shall not be connected to IRS systems and networks directly or via Virtual Private Network (VPN) as outlined in IRM 10.8.1.4.1.18.3(6)a, Personally Owned and Other Non-Government Furnished Equipment.

Separation of Duties, Sensitive IDRS Command Codes for Remittance Perfection Technicians
  1. Separation of Duties - Managers must ensure that Remittance Perfection Technicians have only research command codes in their Integrated Data Retrieval System (IDRS) profiles. Command codes that are considered "sensitive" and can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability, cannot be used by Remittance Perfection Technicians. Therefore all Remittance Perfection Technicians must have restricted IDRS Profiles. Remittance Perfection Technicians that do not have blank Form 809 responsibilities must have RSTRK with Definer U activated on their IDRS profiles. Refer to IRM Exhibit 10.8.34-11, Restricted Command Codes for the Role: Remittance Perfection Technicians Who Do Not Have Blank Form 809 Responsibilities (RSTRK Definer U). This will allow for the use of Command Code URADD that is needed to deposit and process Unidentified remittances. Managers must ensure that only employees that are assigned to work Unidentified Deposits have Command Code URADD in their IDRS profile. When reviewing employees profiles, any profiles that contain URADD and zero times accessed, should be assessed for need. Managers with Remittance Perfection Technicians that have blank Form 809 responsibilities should follow guidance in IRM 3.8.47.2(7)f, Remittance Policy, for activating IDRS profiles with Command Code RSTRK with definer R. Refer to IRM Exhibit 10.8.34-10, Restricted Command Codes for the Role: 809 Receipt Book Users and Submission Processing employees that issue, verify, or reconcile blank Form 809 (RSTRK Definer R)

    Note:

    Any Submission Processing employee with IDRS access other than Remittance Perfection Technicians working in the Receipt and Control restricted area, should also have IDRS Command Code RSTRK with Definer U added to their IDRS profile. For example any ICT employee assigned duties to work within the restricted area during peak must have RSTRK with Definer U placed on their IDRS profile before they proceed to the Receipt and Control restricted area to perform those duties.

Reporting Responsibilities

  1. The Daily Deposit Report (DDR) is used to monitor the campuses total daily deposits.

    1. The DDR should contain the deposit date, Integrated Submission and Remittance Processing (ISRP) deposit volume and amount, manual deposit volume and amount, and the total volume and amount of the combined deposits. See Exhibit 3.8.45-1.

  2. Daily, campuses must email the current day's Daily Deposit Report to Treasury with a "cc" to Headquarters (HQ) by Beginning of Business (BOB) of the following day. (For example, deposit data for Tuesday must be emailed to Treasury and HQ by BOB Wednesday). Forward the report to the following email addresses:

    1. Treasury: receipts@treasury.gov.

    2. Headquarters: *HQ Service Center Accounting (on the global address directory).

    3. nympstaff.markets@ny.frb.org

  3. Immediately contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ; or thru email at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when these reporting requirements cannot be met.

Weekday/Weekend Reporting

  1. The Deposit Function is required to report total dollars and items deposited to Headquarters and Treasury on a daily basis. There will be periods when it is necessary to work weekends to meet the deposit requirements or to meet the Program Completion Date (PCD).

  2. When the Deposit Function works weekends, you must report by BOB Monday morning the total dollar amount and item count that was processed on Saturday and Sunday.

    1. Some sites process Friday evening receipts with the following Monday's or Tuesday's Julian Date. When this is done, Friday's amounts and volumes must be included with Monday's or Tuesday's Receipts. If Monday is a holiday, Friday's amounts and volume must be included with Tuesday's receipts.

Holiday Reporting

  1. When it is necessary to work a holiday, the dollars and items deposited on the holiday, will be included in the next business day's deposit report.

    1. When Monday is a holiday, Tuesday's deposit report must include any deposits made on Saturday, Sunday, and/or Monday and Tuesday. Forward thru email on Wednesday morning, the total dollars and items deposited on Tuesday. Transmit a single total deposit and volume amount for the entire period.

    2. When the holiday is Tuesday, Wednesday or Thursday, the next day's deposit must include the holiday and the reporting day. Transmit a single total deposit and volume amount for the entire period.

    3. When the holiday is on Friday, Monday's deposit must include Friday, Saturday, Sunday and Monday. Transmit a single total deposit and volume amount for the entire period.

  2. If the holiday is a state holiday, but not a federal holiday, Treasury regulations require that the deposit must still be made. The Receipt and Control Operations Manager must have a contingency plan for days when the depository that receives the daily deposit is closed and the IRS campus is open.

    1. Alternate transportation must be arranged. If the regular courier is unable to make the trip, the courier contingency plan can be used.

    2. Contact the Manual Deposit Headquarters analysts, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . They will coordinate with the contacts for your depository bank to find the closest location for courier delivery.

Losses and Shortages

  1. When a manager or an employee becomes aware of a loss or shortage, including a breach of personally identifiable information (PII), the loss or shortage must be reported immediately.

  2. The manager will obtain a statement within 5 workdays from the employee who discovered the loss or shortage. The report will contain the following items.

    1. Date the loss occurred or was discovered.

    2. The amount of loss or shortage.

    3. The type of tax or fund in which loss or shortage occurred.

    4. The circumstances involved with loss or shortage.

    5. The employee's signature, position, title, and the date the statement was prepared.

  3. Managers will prepare a statement, to the best of their knowledge, pertaining to loss or shortage. The statement will contain the following items.

    1. Attempts to reconcile differences.

    2. Determination of negligence.

    3. Any other pertinent information.

  4. The Operations Manager, Receipt and Control, is responsible for notifying the Territory Manager or Department Manager and Campus' Director to contact TIGTA Office of Investigations at 1-800-366-4484 if thefts or embezzlements by employees are suspected; the local Security function, if loss is caused by robbery, burglary, or through casualty; and/or the Secret Service, if loss involves counterfeit money still in possession of IRS. Lost or stolen personally identifiable information must also be reported to the Situation Awareness Management Center (SAMC) at 1-866-216-4809 and also to the Office of Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office (IM) using the PII Incident Reporting Form. Link to the site: https://organization.ds.irsnet.gov/sites/vldp/Privacy/Report/Pages/default.aspx. Call (267) 941-7777 if you have any problems with the online form or have questions about completing the online form. See the Data Protection and Inadvertent Disclosures site for additional information about reporting disclosures.Refer to IRM 3.0.167, Losses and Shortages for complete information.

  5. Note:

    Always notify and coordinate these types of cases through the Submission Processing Planning and Analysis Remittance Security Coordinator.

  6. Prepare and transmit a preliminary report within 10 workdays to Chief, Accounting Services Section, SE:W:CAS:SP:ATP:AS, Headquarters Submission Processing, when a loss is caused by apparent embezzlements, robberies, or other discrepancies. The report must include documentation covering circumstances of loss, recommendations for corrective action, if any, and a copy of the Inspector's report.

  7. Provide a copy of the loss report to the Campus' Accounting Operations within 10 workdays.

  8. Procedures for requesting relief and more detailed loss information are contained in IRM 3.0.167,Losses and Shortages.

Depository Bank

  1. The commercial depositories for campuses are selected for a specified period (with two one-year renewal options). They are chosen through a competitive bid process initiated by IRS and directed by the Treasury Department, Bureau of the Fiscal Service (Formerly Financial Management Service (FMS)).

  2. The affected campus will be requested to submit requirements in memorandum form, detailing the specific items necessary for a good working relationship. This memorandum will become a part of the bid process and should include statistical data, deposit characteristics, balancing issues, a list of IRS officials and managers, and any local issues.

  3. The first part of the statistical data required, will be taken from a two week period preceding the preparation of the memorandum. The data will contain the following elements.

    1. A listing by check routing number.

    2. Total volume and dollar amount of checks.

  4. The second part of the statistical data will be taken from the preceding 12 months. The data will contain the following elements.

    1. Daily dollars and items deposited for the preceding 12 months.

    2. Daily number of debit vouchers and deposit tickets processed.

    3. Total dollars and items of returned checks processed.

  5. Certain deposit characteristics required to be in the memorandum will include the following elements.

    1. Depository pick-up time(s).

    2. Peak/non-peak period definitions.

    3. Deposit package definitions, e.g., deposit tickets and related deposit categories, as well as block totals, fasteners, packaging, etc.

  6. The memorandum will contain procedures for balancing the deposits. The procedures should cover the following elements.

    1. Missing remittances procedures.

    2. Dishonored check procedures.

    3. Timely submission of debit vouchers or supplemental deposit tickets procedures.

    4. Access to on line viewing system for images of checks deposited manually.

  7. The memorandum will contain a list of IRS officials and managers, position titles, description of area of responsibility, and phone numbers.

  8. The memorandum will contain any local issues, e.g., deposits of currency, courier service, sorted/unsorted checks (in-city/out-of-city).

  9. When the Director, Over the Counter Division A/C Revenue Collections Division, within the Bureau of Fiscal Service, approves a bank as a depositary, notification will be sent to the bank and to the Business Operating Division. The Operating Division will notify the Campus' Director. The campus will then begin depositing in the newly authorized depository on the date agreed upon. When available, Campuses will be provided a copy of pertinent portions of the contract.

  10. If a Field Director, Submission Processing desires to discontinue the use of a designated depositary, the request will be sent to Headquarters Submission Processing, Attention: Chief, Accounting Services Section SE:W:CAS:SP:ATP:AS, for transmittal to the Bureau of the Fiscal Service (Formerly the Financial Management Service).

Courier Service Minimum Requirements

  1. All bonded courier service contractors must understand and adhere to the following language:
    As an independent contractor under contract with the Financial Institution or Submission Processing Campus, you must fully understand that much of the information that is provided to courier service contractors and its employees is privileged and legally and administratively restricted and falls under the provisions of the Privacy Act of 1974 and the Internal Revenue Code (IRC) IRC 6103, IRC 7213 and IRC 7431. The Privacy Act, the Safeguards, and the Criminal/Civil Sanctions paragraphs specify the courier service contractor's responsibility and liability regarding disclosure of this information. At the expiration of the courier service contract with the financial institution or Submission Processing Campus, the courier service contractor is required to return all documents in its possession to the Internal Revenue Service.

Courier Service Requirements and Responsibilities
  1. The courier service contractor will be bonded/licensed and the employees designated to transport IRS deposits and/or requiring access to IRS sites shall:

    1. Satisfy the requirements for a Low Risk Investigation conducted by IRS personnel, which includes a Federal Bureau of Investigation (FBI) fingerprint and name check, as defined in IRM 10.23.2, Contractor Investigations.

    2. Be a U.S. citizen or have Lawful Permanent Resident Status (LPR).

    3. If immediate family members are employed as couriers for the same courier service, these employees must complete the Couriers Additional Disclosure Statement.

  2. The Courier Additional Disclosure Statement (CADS) must be completed by each courier employee and must include:

    1. Name(s) and relationship(s) of all family members who perform courier duties. If no other family members perform courier duties, write "NONE" in large letters in the space where family member's name(s) are to be shown on the CADS.

    2. Printed or typed name of the courier.

    3. Signature of the courier.

    4. Signature of courier service authorizing official and date.

    5. The disclosure statement must be updated annually or when a change of status occurs.

    6. The courier service must notify the designated Submission Processing Campus contact within 24 hours of a change in a courier's status.

  3. The government has broad authority to interpret the scope of "immediate family" in this context. Generally, immediate family members refer to parent, spouse, child, step-child, foster child, step parent, half siblings, siblings, and foster parent. However, when couriers who are related reside in the same domicile, the definition of "immediate family" may be broadened and prohibitions extended to include others (e.g., grandchildren, sons-in-law, daughters-in-law, first cousins, and other second generation family members).

  4. The courier shall provide the IRS with two (2) contact names (a primary and an alternate), telephone numbers, and cell phone numbers, if applicable. Also, the courier service must provide the IRS with a 24 hour emergency telephone number and name of the person to contact during non-business hours. The courier service must notify the Internal Revenue Service within 24 hours of any change in contact persons and/or telephone numbers.

  5. The courier shall provide a monthly Courier Deposit Access List (CDAL) and copies of all Courier Additional Disclosure Statements (CADS). The CDAL must be of courier service employees designated to transport IRS deposits, on a signed contractor's official dated letterhead, with the following information:

    1. Employee's Typed Name

    2. Employee's Title

    3. Employee's Signature

    4. Employee's Photograph

  6. The Courier must ensure the CDAL and the CADS are current by notifying the designated Submission Processing representative or alternate within 24 hours, by facsimile transmission, email or hand delivery:

    1. When a courier service employee who appears on the CDAL has been discharged from his/her duties.

    2. When a new courier service employee has been hired to provide the services specified herein with the same information as required for the CDAL and the required NBIC Background Investigations letters have been received.

    3. When a courier has experienced a change that will affect their relationship status, the CADS must be updated.

  7. The courier service shall provide each courier service employee with a printed and laminated identification card containing the following information that is consistent with the CDAL information provided to the agency:

    1. Employee's Typed Name

    2. Employee's Title

    3. Employee's Signature

    4. Employee's Photograph

    5. Company Name

  8. The courier service will ensure that all courier service employees:

    1. Display (on their person) the picture identification card that clearly identifies them as authorized messengers for the courier service.

    2. Wear company logo uniforms.

  9. The courier service must ensure on a continuous basis that:

    1. Two courier service employees who appear on the CDAL are provided for each deposit pickup from the Submission Processing Campus and for delivery to the depository.

    2. The two courier service employees are not related by checking their names against the CADS.

    3. The courier vehicle being used to transport deposits is always locked and secured whenever IRS data is contained within the vehicle until it reaches its destination.

    4. The courier vehicle is always under the supervision of one of the couriers and never left unattended.

    5. Deposits are transported in an appropriate vehicle. The IRS prohibits any deposit packages and/or containers to be transported by walking or by bicycle.

    6. Courier service employees review Form 10160, Receipt for Transport of IRS Deposit, to ensure information is accurate by verifying package seal numbers on mailbags and by signing and annotating the time the courier service is taking possession of the deposit. Use the cell phone of the courier driver to ensure an accurate consistent time. Do not use a personal watch. See Exhibit 3.8.45-7.

    7. Agency deposits are not transferred to another courier service employee or courier service vehicle after the deposits are picked up. Exception: In emergency situations, such as in the event of vehicle breakdown, or inclement weather, the courier service employee must immediately notify the IRS and Bank. To ensure this notification can be made promptly, courier vehicles must contain appropriate IRS Submission Processing Campus contact names/phone numbers, and courier employees must carry a cell phone.

    8. Agency deliveries are dedicated to the IRS and no other packages will be transported with IRS packages in the same vehicle. The area of the vehicle in which the agency packages and/or containers are placed must be clean, debris-free and without containers, materials such as canvas or plastic used to cover or protect articles, or other items.

    9. Delivery of agency packages and/or containers occurs on the same day. Overnight delivery of agency packages and/or containers is not permitted.

    10. Upon delivery of the packages/containers to the designated depositary, the courier service employee must obtain the signature of the person receiving the deposit, the date and time on Form 10160, Receipt for Transport of IRS Deposit. Ensure the time of the depository is consistent with the cell phone time of the courier driver. If not, the courier driver should notate the time from their cell phone in the outside edge of the Form 10160 to be returned to the IRS.

    11. The courier service must immediately notify the IRS and Bank when established schedules/time-frames cannot be met. The courier must also notify the IRS within 1 hour of an accident or the theft, loss, or destruction of government property being transported. To ensure this notification can be made promptly, courier vehicles must contain appropriate IRS Submission Processing Campus contact names/phone numbers, and courier employees must carry a cell phone.

  10. The courier service must ensure that vehicles provided for the purposes of satisfying the conditions specified herein meet the following requirements:

    1. The vehicles are maintained in good condition, appearance and working order.

    2. The vehicles must be state-registered and meet the minimum safety standards of the licensing state.

    3. The vehicles must be steel framed and doors must be able to be secured from both inside and outside.

    4. The area of the vehicle in which the agency packages and/or containers are placed is clean, debris-free and without containers, materials such as canvas or plastic used to cover or protect articles, or other items.

    5. All IRS deposits must be transported within the locked area of a vehicle (such as the cab or trunk). "Locked area" does NOT include any container of any sort in the bed (back) portion of a pickup truck or any open bedded vehicle (with or without a camper shell) whether or not such shell or container is locked or otherwise secured.

  11. The courier service will provide ad-hoc pickups for large dollar remittances when notified by the designated IRS Submission Processing representative or designee.

  12. The courier service must ensure that a courier service employee returns by the next business day:

    1. The original Form 10160, Receipt for Transport of IRS Deposit, with bank's received date, time of receipt, printed name and signature of bank representative who received the deposit at a designated depositary bank.

    2. All mailbags and/or boxes, except plastic bags.

  13. The courier service will ensure that the company has and maintains insurance coverage valued at $1,000,000 to cover the costs to reconstruct a lost, stolen or destroyed deposit made payable to the IRS.

  14. The courier service shall provide bonding or insured certifications to the IRS Contracting Officer's Representative (COR).

  15. The courier service must provide within 30 days of receipt of new requirements or prior to implementation of a new contract a Disaster Contingency Plan. The contingency plan must address what alternative actions the courier will implement to fulfill its obligation in the event of employee strikes, inclement weather, natural disaster, traffic accident and unforeseen events. This plan will be provided to the COR for the IRS.

  16. All courier service employees responsible for transporting the deposit must complete a review of the IRS Annual Courier Service Security Briefing provided by the Submission Processing Campus Representative. The signed documentation verifying completion of the Security Briefing must be provided back to the Submission Processing Campus Representative within 30 days of receipt. New courier employees must complete the Security Briefing immediately upon their hiring, and the signed documentation of completion must be submitted to the IRS before they will be allowed to transport a deposit to the depository.

  17. The courier service must be aware that periodic unannounced surveillance of courier drivers will be conducted from the IRS Campus they service, to the respective depository banks, by IRS HQ personnel. IRS reserves the right to inspect any vehicle or driver to ensure that deposits are safeguarded during transit and drivers are consistent with requirements specified in the contract.

Receiving Bank Employee Requirements and Responsibilities
  1. Upon receipt of the deposit package, the receiving bank employee will examine the deposit package for any obvious indication of tampering during transport. The receiving bank employee will then:

    1. Match volume and seal numbers on mailbags to Form 10160.

    2. If all seal numbers agree and are intact, the receiving bank employee will complete the receipt portion of Form 10160 by annotating the date, time of receipt, receiving bank employee's name and signature, and give an original and one copy to the courier, who will return the original receipted Form 10160 to the Submission Processing Campus by the next business day.

    3. If the seal numbers do not agree, then the receiving bank employee must immediately notify the designated Submission Processing Receipt and Control Operations Manager or designee and follow established bank procedures.

Submission Processing Campus Receipt and Control Requirements and Responsibilities
  1. Must ensure that courier service employees designated to transport IRS deposits and/or requiring access to IRS sites:

    1. Satisfy the requirements for a Low Risk Investigation, which includes a Federal Bureau of Investigation (FBI) fingerprint and name check as defined in IRM 10.23.2, Contractor Investigations, and conducted by IRS personnel.

    2. Be a U.S. citizen or have lawful permanent status.

    3. If immediate family members are employed as couriers for the same courier services, these employees must complete the Courier's Additional Disclosure Statement (CADS).

  2. The COR for the Courier contract will be required to ensure that all courier employees have satisfied the low risk investigation. The information on completing this investigation can be found on the Contractor Security Management webpage at http://awss.web.irs.gov/FMSS/Contractor-Sec-Mgmt/csm-index.html. This website will lead to the new Automated Background Investigation System (ABIS) Website by clicking on “Initiate an Investigation or Revalidation to a New Contract. The new ABIS website is https://abis.web.irs.gov:9443/abis-webclient/login.html

  3. Must maintain in Receipt and Control and have accessible for review upon demand a copy of the following items:

    1. The memorandums granting Staff-Like-Access for each courier service employee listed on the CDAL.

    2. Courier Deposit Access List (CDAL) on site for 1 year after the conclusion of the Government Accounting Office (GAO) audit for that year.

    3. Unexpired approved background investigations must be maintained on site.

    4. Expired background investigations and the investigations for employees who are no longer employed by the courier company must be maintained on site for 1 year after the conclusion of the GAO audit for that year.

    5. A current valid courier insurance certificate valued at 1 million dollars must be maintained on site and produced upon request. If the certificate expires during the year, both certificates must be maintained together on site. When new insurance certificates are issued, provide copies to the Headquarters Deposit Analyst within 5 working days.

    6. Expired insurance certificates must be maintained for 1 year after the conclusion of the GAO audit for that year.

    7. A copy of the Courier's Additional Disclosure Statement (CADS) must be maintained on site with the CDAL for one year after the conclusion of the General Accounting Office audit for that year.

    8. Courier incident log.

    9. Courier Daily Check List.

  4. Shall provide the courier company with two (2) contact names (a primary and an alternate), telephone numbers, and cell phone numbers. Also, the Submission Processing Campus must provide the courier company with a 24 hour emergency telephone number and name of the person to contact during non-business hours. The Submission Processing Campus must notify the courier company within 24 hours of any change in contact persons and/or telephone numbers.

  5. Must maintain a monthly Courier Deposit Access List (CDAL) and copies of all Courier's Additional Disclosure Statement (CADS). The CDAL must be of courier service employees designated to transport IRS deposits, on the contractor's signed official dated letterhead, with the following information:

    1. Employee's Typed Name

    2. Employee's Title

    3. Employee's Signature

    4. Employee's Photograph

  6. The Courier Additional Disclosure Statement must be completed by each courier service employee and must include:

    1. Name(s) and relationship(s) of all family members (regardless of residence) who perform courier duties. If no other family members perform courier duties, write "NONE" in large letters in the space where family member's name(s) are to be shown on the CDAL.

    2. Printed or typed name of the courier.

    3. Signature of the courier.

    4. Signature of courier service authorizing official and date.

    5. The disclosure statement must be updated annually or when a change of status occurs.

    6. The courier service must notify the designated Submission Processing Campus contact within 24 hours of a change in a courier's status.

  7. The government has broad authority to interpret the scope of "immediate family" in this context. Generally, immediate family members refer to parent, spouse, child, step-child, foster child, step parent, half siblings, siblings and foster parent. However, when couriers who are related, the definition of "immediate family" may be broadened and prohibitions extended to include others (e.g., grandchildren, sons-in-law, daughters-in-law, first cousins and other second generation family members).

  8. Must provide updates of the CDAL to the Physical Security Office (PSO) immediately upon receipt to ensure authorized and timely access. Route the CDAL to PSO with a Form 3210. File the acknowledged Form 3210 with the CDAL for retention.

  9. Must ensure monthly the validity of the CDAL and the CADS by:

    1. Reconciling the monthly list against updated CDALs received advising when a courier service employee who is authorized to satisfy the services specified herein has been discharged/hired. Discrepancies found during reconciliation will be documented in writing and brought to the attention of the COR or Receipt and Control Operations Manager or designee within 1 business day of discovery.

    2. The CADS must be updated when a courier has experienced a change that will affect their relationship status. Campuses must provide blank copies of the CADS form to the courier or depositary when requested.

    3. The COR will ensure monthly that new personnel have undergone a low risk investigation, which includes an FBI fingerprint/name check before access is granted.

    4. The Receipt and Control Operations Manager or designee, will ensure monthly that new personnel have undergone a low risk investigation, which includes FBI fingerprint/name check before access is granted.

  10. Must ensure that verification of identity for each courier service employee is performed by comparing the individual's identification card against the CDAL and CADS as follows:

    1. An authorized access list at the first point of contact (e.g., Gate, main building entry, loading dock) by a member of the contract security guard force assigned to the Submission Processing Campus.

    2. CDAL at the point of pickup by the designated IRS Submission Processing representative or designee.

    3. Ensure that the two courier service employees are not related by checking their names against the CADS.

  11. In addition to the requirement contained in (9) above, the local Physical Security Office (PSO) can grant access on the basis of the following:

    1. Information maintained in the campus Electronic Access Control System (EACS) database, or;

    2. Information maintained in a database (or similar) used by the PSO to clear visitors at the first point of contact.

      Note:

      If either option 10a or 10b is utilized, it is required that the access authorization for each courier employee be associated with an expiration date (or verification date) whose term matches the updates required of Courier Deposit Access List. IRM 3.8.45.1.9.1(5).

  12. Must ensure that all courier service employees designated to transport IRS deposits:

    1. Display (on their person) the picture company identification card with the company logo that clearly identifies them as authorized messengers for the courier service.

  13. Must establish the following conditions for courier pickup of deposit:

    1. Designate a place/entrance for courier service employee pickup ensuring that access into the Submission Processing Campus is limited (e.g., loading dock).

    2. Designate a time for courier service employee pickup.

    3. Ensure that all deposits prepared for pickup by the courier service employees be delivered and turned over by the designated IRS Submission Processing representative or designee.

    4. Ensure that all deposits are accompanied to the courier service employees vehicle by at least one Receipt and Control employee.

  14. Must, on a continuous basis, inspect the courier service vehicle to ensure that no unauthorized passengers are accompanying the courier service employees designated to accept the agency's deposit and ensure that all doors are locked once the deposit is placed in the vehicle.

  15. Procedures for Securing Deposit Packages:

    1. Must ensure that all deposit packages, at a minimum, are contained in corrugated boxes, secured with either heat strap or packing tape on all sides securing all top flaps, side panels and seams, then placed in high level security mailbags with non-sequential numbered seals for tracking. Ensure all numbered seals are securely fastened to prohibit removal of boxes or the numbered seal without being broken.

    2. Must ensure all deposit boxes and mailbags are clearly tagged with "To and From" address.

    3. The deposit employee will prepare Form 10160, Receipt for Transport of IRS Deposit. (See (16) below for preparation procedures of Form 10160 )

  16. Must complete Form 10160, Receipt for Transport of IRS Deposit, for each courier service employee pickup and, additionally, ensure the following information is contained on each Form 10160:

    1. The name and signature of the designated IRS Submission Processing representative or designee who released the deposit to the courier service employee.

    2. The time the deposit was released to the courier service employee. To maintain consistency utilize the courier driver's cell phone to annotate the release time. Do Not use personal watches. This will also ensure they are carrying the required cell phone with them.

    3. The date the deposit was released to the courier service employee.

    4. The number of boxes released to the courier service employee.

    5. The serialized number(s) of the security seal(s) used to secure the deposit are entered in "Description" column.

    6. The name and signature of the courier service employee who received the deposit.

    7. Must maintain one carbon copy of Form 10160 with the courier service employee's signature, date, and time they took possession of the deposit.

    8. Must receive back by the next business day the original completed Form 10160 with bank representative's signature, date, and time deposit was received by the depositary. The date and the time the deposit was received by the depositary may be handwritten or date stamped by the bank representative. Date stamp the reverse side of each Form 10160 with the date the form was received from the bank.

    9. Must reconcile each day's Form 10160 to ensure you are receiving dedicated service (e.g., the time between your release to the courier and the release to the bank is not in excess of the time allowed in the Courier Contract Statement of Work). If discrepancies are found, or if Form 10160s are not returned from the bank as required, immediately notify the designated Submission Processing Campus Operations Chief with responsibility for deposits. Notate the issue in the Courier Incident Log.

    10. Must retain for 3 years from date of deposit of Form 10160.

Courier Contingency Plan Development
  1. This subsection provides campuses with the information necessary to create a courier contingency plan. However, site-specific issues should be identified and included as necessary.

  2. All of the following elements must be incorporated into each campus' local courier contingency plan:

    1. Courier company contact name and number. This will facilitate contact with the courier company in an attempt to rectify the failed requirement.

    2. Directions to the campus' depositary.

    3. Contact name and numbers at the depository to notify them of any change or delay in the delivery of the deposit.

    4. List of the designated campus non-bargaining employees (primary and alternates) and telephone numbers who will be responsible for delivering the deposit.

    5. Establish procedures to obtain a government vehicle that will be used to deliver the deposit to the depository. If a government vehicle is not an option, identify how the deposit will be transported to the depository.

    6. Name and number of HQ Deposit analysts, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , who must be notified as soon as possible when it is necessary to implement the contingency plan.

    7. Identify campus employee or designee who will be responsible for notifying the following: Receipt and Control Operations Chief or designee, HQ Deposit Analyst, and SPC COR.

    8. The date the contingency plan was created/revised.

  3. Campus employees are required to adhere to all deposit delivery procedures. They will ensure:

    1. Form 10160 is completed.

    2. There will be no stops between the Campus and the point of delivery at the depository.

    3. They will have access to a cell phone in case of emergency.

    4. The vehicle must meet the requirements outlined in IRM 3.8.45.1.9.1(10).

  4. The plan should be utilized when the following occurs with the campus' contracted courier:

    1. The courier fails to arrive.

    2. The courier company fails to send two authorized couriers and the courier service will be unable to send suitable replacement couriers in time to meet the campus' deposit deadline.

    3. One or both couriers do not meet the requirements outlined in IRM 3.8.45.1.9.1 and the courier company will be unable to send suitable replacement couriers in time to meet the campus' deposit deadline.

    4. The vehicle does not meet the requirements in IRM 3.8.45.1.9.1(10) and the courier service will be unable to send a suitable replacement vehicle in time to meet the campus' deposit deadline.

    5. The courier company has allowed their required one million dollar insurance binder for deposit reconstruction to expire as required in IRM 3.8.45.1.9.1(13) and will be unable to present a current insurance binder in time to meet the campus' deposit deadline.

    6. The contract with the courier has expired.

    7. The time on Form 10160 from the previous day exceeds the time allowed in the courier contract, and the courier company management cannot provide a reasonable explanation (i.e., car problems, traffic, weather, etc.)

    8. If the courier company is unable to pick up the deposit and hazardous conditions exist, the Operation's Manager in Receipt and Control should evaluate the conditions before implementing the contingency plan. If it is determined that conditions are too hazardous to deliver the deposit under the contingency plan, secure the deposit in the secured area of Receipt and Control and make arrangements for delivery at the earliest opportunity. Notify the Depository Bank contact of the situation.

  5. The campus contingency plan must be updated when there is a change in IRS personnel, courier service or depositary.

  6. A copy of the contingency plan must be maintained with the CDAL.

Daily Courier Checklist
  1. The Daily Courier Checklist must be completed by the Receipt and Control employee who releases the deposit to the Courier (See Exhibit 3.8.45-9). The purpose of the checklist is to:

    1. Ensure the courier meets all outlined requirements before the deposit is released.

    2. Document the steps taken to correct the situation when the courier is not in compliance.

    3. Provide documentation to Headquarters to address contract issues that may arise.

  2. The checklist must be signed by the employee. If there is an issue that must be notated in the Courier Incident Log, the checklist must also be signed by the manager.

  3. The checklist must be retained on file for the current calendar year plus two years and then destroyed unless the courier daily checklist is involved in any case or administrative action. If the record is involved in any discrepancy related to the courier, the document must be retained for three years following the last action on any case or administrative action.

  4. If space is a concern, campuses may scan the completed and signed documents and retain electronic copies for the retention period.

Courier Incident Log
  1. All incidents involving couriers must be recorded on the Courier Incident Log Exhibit 3.8.45-8. The following information must be recorded on the Courier Incident Log:

    1. Date - The date the incident occurred.

    2. Courier Employees Name(s) - The names of the courier employees transporting that day's deposit.

    3. Pick Up Time - The time the deposit was released to the courier.

    4. Number of Boxes - The number of boxes included in that day's deposit.

    5. Problem Incurred/Action Taken - A brief explanation of the incident (i.e., not in uniform, no ID badge with the company logo, only one courier employee, courier failed to arrive, courier not on CDAL, courier arrived late, 10160 not returned, etc.) AND a brief note indicating the action taken by the Campus (i.e., deposit not released, contingency plan implemented, contacted courier company officials, deposited next day, contacted HQ, etc.).

    6. Reporting Official - Printed name and signature of Receipt and Control Operations Manager or designee.

  2. The Courier Incident Log must be maintained on file for the current calendar year plus two years and then destroyed unless the Courier Incident Log is involved in any case or administrative action. If the Log is involved in any discrepancy related to the courier, the document must be retained for three years following the last action on any case or administrative action.

Submission Processing Receipt and Control Operations Manager or Designee Responsibilities
  1. Must ensure procurement of a sufficient number of high-level security mailbags and non-sequential numbered seals to provide for all deposit transports.

  2. Upon notification of tampering or loss, the Operations Manager will notify the:

    1. Office of the Treasury Inspector General for Tax Administration (TIGTA).

    2. Remittance Security Coordinator for the campus.

    3. Headquarters Deposit Analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. The Contracting Officer's Representative (COR) designated for the courier contract.

  3. Will be required to ensure that all courier employees have satisfied the basic investigation as described in IRM 3.8.45.1.9.1(1) above.

  4. Shall ensure the receipt of the Disaster Contingency Plan from the courier service.

  5. Shall ensure incidences involving couriers are recorded and accessible for official use. See Exhibit 3.8.45-8.

  6. If the Form 10160 is returned to the campus and the bank representative's signature (when required) or the date and/or time the deposit was received at the depositary bank is not present, proceed as follows:

    1. Contact the bank representative and request an updated Form 10160 with entries to all necessary fields. Notate the incident in the Courier Incident Log.

    2. Remind the courier company management and employees to make sure the receiving bank employee makes entries in all required fields on Form 10160.

    3. If the problem continues, contact the Headquarters Manual Deposit analyst. The HQ analyst will contact HQ management and Bureau of the Fiscal Service (Formerly Financial Management Service (FMS)), who will pursue the problem with the bank. Note on the Courier Incident Log that the problem has been elevated to Headquarters for resolution.

      Note:

      If the transport time for the previous day exceeds the time allowed in the courier contract, and no reasonable explanation can be provided, enact the Courier Contingency Plan and contact the HQ Analyst.

Contracting Officer's Representative (COR) Responsibility
  1. Shall ensure that the company has and maintains bonding/insurance coverage valued at $1,000,000 to cover the costs to reconstruct a lost, stolen or destroyed deposit made payable to the IRS.

  2. Shall maintain a copy of the insurance certificate.

  3. Shall contact Headquarters Deposit analysts if the transport time on Document 10160 exceeds the time allowed in the courier contract, and no reasonable explanation can be provided by the courier company management.

  4. Shall deliver the Annual Memorandum For All Courier Service Contractors, issued by HQ on or before March 15, to the designated representative of the courier company. The courier company representative will acknowledge receipt by signing Form 3210, Document Transmittal. An email may be sent to the Courier Company in lieu of delivering or handing the courier employees the memorandum package; however you must receive a return email acknowledging receipt of the sent email in lieu of the Form 3210. The acknowledged Form 3210 or return email acknowledgement will be maintained by the COR for two years after the signature date.

  5. Shall deliver IRS Annual Courier Security Briefing package to the courier company at the same time as the Annual Memorandum For All Courier Service Contractors. A copy of the signed Form 3210 or return email acknowledgement verifying the courier company has received the Annual Memorandum For All Courier Service Contractors, and a copy of the Documentation of Completion for the Annual Courier Service Security Briefing with courier employee signatures should be emailed to HQ analysts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ by April 15th. If the Form 3210 or return email acknowledgement and documentation have not been received back from the courier company, the courier contingency plan should be implemented on April 16th and remain in affect until received from the courier company. Documentation of Completion for the Annual Courier Service Security Briefing will be maintained by the COR for two years after signature date.

  6. The COR for the Courier contract will be required to ensure that all courier employees have satisfied the low risk investigation. The information on completing this investigation can be found on the Contractor Security Management webpage at http://awss.web.irs.gov/FMSS/Contractor-Sec-Mgmt/csm-index.html. This website will lead to the new Automated Background Investigation System (ABIS) Website by clicking on “Initiate an Investigation or Revalidation to a New Contract.” The new ABIS website is https://abis.web.irs.gov:9443/abis-webclient/login.html.

  7. CORs are responsible for tracking when reinvestigations are due for their courier contractors. CORs should ensure that the Risk Assessment Checklis (RAC) and other appropriate documents are submitted at least three (3) months prior to the expiration of the background investigation, which is five years from the date of the final approval memo. A copy of the final approval memo can be obtained through the ABIS Website.

Headquarters Deposit Analyst Responsibility
  1. Shall issue annually, on or before March 15, a Memorandum For All Courier Service Contractors. This memorandum will list all requirements and responsibilities for courier service employees.

  2. Shall issue annually, with the Memorandum For All Courier Service Contractors, a package of materials for the IRS Annual Courier Service Security Briefing to be completed by all Courier Service Employees with access to IRS data. The courier company must return Documentation of Completion to the COR by April 15th. A copy of the signed Form 3210 verifying the courier company receipt of the Annual Memorandum For All Courier Service Contractors, and a copy of the Documentation of Completion for the Annual Courier Service Security Briefing with courier employee signatures should be emailed to HQ analysts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ by April 15th. HQ Analyst will contact the campus COR if emailed copies have not been received by April 15th. HQ analysts will verify if the Memorandum and Documentation have been received or instruct the campuses to implement the Courier Contingency Plan beginning on April 16th until received from the courier company.

  3. Courier Surveillance will be conducted at all Submission Processing Campuses by Headquarters analysts during the annual Campus Unannounced Internal Security Reviews. Timeframes for courier delivery of the deposit listed in the Courier Contract Statement of Work will also be reassessed during the Unannounced Internal Security Reviews and at a minimum reassessed after each calendar year or whenever there is a change in the depository location. The methodology used to calculate the timeframes will be based on trip timeframes as documented on Form 10160 for an entire calendar year. The following methodology will be used to determine the timeframes:

    1. Determine the Mean timeframe of the delivery time from Form 10160 for a calendar year period

    2. Calculate the Standard Deviation from the range of significant timeframes used to determine the Mean timeframe.

    3. Add two Standard Deviations to the Mean timeframe to determine the allowable timeframe.

    : Requests to adjust the Courier Timeframe must be approved by the Procurement Contracting Specialists responsible for updating the Statement of Work.

  4. Upon notification of any courier issues, the Headquarters Deposit Analyst will contact HQ management. HQ management will determine if additional courier surveillance is needed as a result of courier issues. HQ management will contact the courier company's management and make the decision to resume or terminate the courier contract.

Bureau of the Fiscal Service (BFS) (formerly Financial Management Service (FMS)) Responsibility
  1. Shall ensure the receipt of the Disaster Contingency Plan for the contracts held through the Commercial Banks.

Deposit Items Not Processed Through ISRP

  1. Deposit items that are not processed through ISRP must be processed following the regular Manual Processing procedures for each document/return type. Below is a list of deposit items that are processed as Manual items.

    • Unidentified deposits

    • Bureau of Public Debt (BPD) - The Bureau of Public Debt has merged with the Financial Management Service and is now the Bureau of the Fiscal Service (BFS).

    • Non Masterfile (NMF)

    • Refund Repayments (See IRM 3.8.45.17 for exceptions)

    • State Income Tax Levy Program (SITLP)

    • Foreign Remittances without a U.S. Bank routing symbol printed in Magnetic Ink Character Recognition (MICR) ink and a nine digit routing number

    • Re-Deposits of Dishonored Checks

    • Bonds

    • Single Remittance of 100 million dollars or more. Remittances should be returned to the taxpayer following instructions in IRM 3.8.45.1.1(10).

    • Cash Deposit

    • Determination Letter Application User Fee

    • Exempt Program/Exempt Organization Determination Letter Fees

    • Form 5558, Application for Extension of Time to File Certain Employee Plan Returns (When this form is submitted for other than a Form 5330 it goes through Manual Deposit.)

    • Form 5500 Series (Form 5500, Form 5500SF, Form 5500EZ and Form 5500C/R) (Although Form 5500 and Form 5500SF are filed with the Department of Labor, IRS deposits remittances for penalty payments)

    • EO Photocopy and EO User Fees

    • Form 8621A, Return by a Shareholder Making Certain Late Elections to End Treatment as a Passive Foreign Investment Company (Ogden Only)

    • Form 8288 processed with a Social Security Number (SSN)

    • Form 5330 processed with an SSN and a missing Plan Number

    • IRC 6603 Payments.

    • Department of Justice/Criminal Restitution Program Payments processed at Kansas City SPC Only

    • Form 1040ES payments received for a future calendar year

  2. Photocopies of checks processed manually will be maintained in a separate file according to retention specified in IRM 3.8.45.25.5(3). The file will be maintained in a separate locked cabinet to protect taxpayer personal data.

Cash Deposit Procedures

  1. A provision for depositing cash may be negotiated between the Bureau of Fiscal Services and your TGA Bank. Cash deposits will be less than $5,000.00.

  2. Cash received in the mail, historically less than $5,000.00, will be deposited within the 5 day exception requirement, contained in Volume 1, Chapter 6-8000, of Treasury Financial Manual (TFM). If the campus receives cash in the amount of $5,000.00, or more, an ad hoc pick up must be arranged with the depository or local management will convert the funds and process. All cash payments for taxes received must be deposited at the earliest deposit pickup. See also reference IRM 3.8.47.13 Receipts for Cash Received in the Mail at Campuses.

  3. Verify with a counterfeit marker that all bills deposited are legitimate.

  4. Form 809 will be completed along with Form 2679, Teller's Daily Reconciliation and Balancing. Form 809, Part 2, will be mailed to taxpayers by the morning following deposit of the cash. Form 809, Parts 1 and 3, will be turned into the Field Office Payment Processing unit for weekly review.

  5. Employees will turn in daily the recorded dollar amounts of cash and completed Form 809s Part 1 along with a completed Form 2679 Teller’s Daily Balancing and Reconciliation (in triplicate) to the designated deposit reviewer. The 809 employee and the reviewer will agree on the dollar amounts as witnessed and receive a signed copy of Form 2679 Teller’s Daily Balancing and Reconciliation for their records.

  6. If your campus processes cash in the Field Office function, see procedures in IRM 3.8.47.6, Maintaining Control and Inventory of Form 809 (Official) Receipt for Payment of Taxes.

  7. Processing of a cash deposit must be done through the Manual Deposit process. Posting of the payment to the taxpayer's account cannot be performed utilizing IDRS Command Code PAYMT as it is considered a sensitive command code that is not allowed in Receipt and Control employees IDRS profiles. Follow Manual Deposit instructions in IRM 3.8.45, Manual Deposit General.

Deposit Procedures (General)

  1. All checks, drafts and money orders payable at par through normal banking channels are processed through the Campuses Deposit Activity. Any remittance that can be perfected to negotiability should be deposited regardless of the amount.

  2. All items will be deposited either through ISRP, IDRS or Manual Processing.

  3. Remittances received in the Campuses will be deposited into one of the five types of funds:

    1. Revenue Receipts (MF and Automated Non Master File (ANMF)).

    2. Deposit Fund.

    3. General Fund.

    4. Repayments to Refund Appropriations.

    5. Other Receipts Fund.

  4. Remittances received and deposited into the REVENUE RECEIPTS Fund will consist of the following items:

    1. Internal Revenue taxes, penalties, interest and costs, assessed or assessable against taxpayers;

    2. Payments on accepted Offers-in-Compromise;

    3. Payment of court fines, court costs forfeitures, penalties incident to or imposed for violation of Internal Revenue laws, from the redemption of property acquired by the government; and

    4. Receipts from consummated sales of acquired property.

  5. Remittances received and deposited into the DEPOSIT Fund will consist of the following items:

    1. Payments tendered as offers-in-compromise,

    2. Offers of prospective bidders of payments for the sale of seized property, and

    3. Offers to bid or initial payments under a deferred payment sale of acquired property.

    4. Other payments may be deposited to this account when required by specific instructions.

  6. Remittances received and deposited into the GENERAL Fund are payments under Federal Firearms Act, fees for the duplication of records, other user fees, arbitrage, etc.

  7. Remittances received and deposited into the REPAYMENTS TO REFUND APPROPRIATIONS Fund are recoveries of erroneous, duplicate or overpaid refunds or fraudulently negotiated checks.

  8. Remittances received and deposited into the OTHER RECEIPTS Fund are special fees and miscellaneous non-revenue receipts.

  9. All remittances will be credited to taxpayer accounts for the earliest IRS Received Date. This is the date the remittance is received by IRS or Department of Treasury.

Valid Transaction Codes for Remittance Processing

  1. The following are the primary transaction codes (TCs) for crediting a payment to a taxpayers account. (Refer to Document 6209, IRS Processing Codes and Information for complete information). Transaction codes in scan lines of payment posting vouchers and pre-printed transaction code information on notices and letters utilized as payment posting vouchers, should be considered as the appropriate TC for posting payments. If there is any question as to the validity of the pre-printed TC on the notices or letters and in the scan lines, please contact HQ analysts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for further guidance.

    Transaction Code Title IMF/IRAF BMF NMF
    430 Estimated Tax (Used for Form 1040ES) X X
    610 Remittance with Original Return-- (current or prior year) X X X
    640 Advanced Payment on Deficiency (Not valid for MFT 36 and 67) X X X
    660 Estimated Tax (Used for Form 1041ES) X X
    670 Subsequent Payment X X X
    680 Designated Payment of Interest X X X
    690 Designated Payment of Penalty X X X
    694 Designated Payment of Fees and Collection Costs X X X
    971 Miscellaneous Transaction X
  2. The following are the secondary transaction codes used for debiting a taxpayer's account. (Refer to Document 6209 for complete information.)

    Transaction Code Title IMF/IRAF BMF NMF
    160 Manually Computed Delinquency Penalty X X
    170 Estimated Tax Penalty X X X
    180 Deposit Penalty X X
    200 TIN Penalty Assessment X X
    270 Manual Assessment of FTP Penalty X X X
    340 Restricted Interest Assessment X X X
    360 Fees and Collection Costs X X
    570 Additional Liability Pending and/or Credit Hold X X X
  3. Form 3244, Payment Posting Voucher, that contain transaction codes (TC) 160, 170, 180, 200, 270, and 340, will be posted as a manual deposit. ISRP will allow for posting of one primary, one secondary, one designated payment and one tertiary (a third transaction amount for one document; must be a debit amount).

OTCnet

  1. The Over The Counter Channel Application (OTCnet) is a secure web-based application that:

    1. Automates the over the counter (OTC) deposit reporting process and captures detailed accounting information at the point of deposit in order to facilitate the classification of monies on a daily basis.

    2. Provides federal agencies with the ability to track deposits from the point of entry to final posting.

    3. Eliminates dual entry, keying errors and creates a combined Standard Form 215A (SF 215A), Deposit Ticket, and Financial Institution deposit slip information.

    4. Provides financial institutions the ability to confirm the electronic deposit ticket, create electronic adjustments, and submit the confirmed deposit tickets and adjustments into Ca$hlink II without the necessity of re-keying the deposit ticket data.

  2. As campuses use OTCnet to create deposit tickets, employees in the Deposit Function are designated as Deposit Preparers, Deposit Approvers, and Agency Viewers. See the roles and responsibilities of these employees in IRM 3.8.45.2.2.1 below.

OTCnet User Roles and Responsibilities
  1. OTCnet users are assigned a role which determines what functions the user can perform. The following are OTCnet roles:

    1. Primary Local Security Administrator (PLSA) - Headquarters Analyst that establishes Local Security Administrators (LSA) to delegate user provisioning and other functions; creates, modifies and deletes permissions for LSAs, Accounting Specialists, Deposit Preparers, Deposit Approvers, Deposit Confirmers and Viewers.

    2. Accounting Specialist - Headquarters Analyst that creates the organization's hierarchy, enters and modifies the agency's accounting codes, defines processing options and custom labels and creates user defined fields.

    3. Local Security Administrator (LSA) at Campuses establishes local users on OTCnet. Creates, modifies and deletes permissions for Deposit Preparers, Deposit Approvers and Viewers and views reports.

    4. Deposit Preparer at Campuses creates and modifies the deposit ticket.

    5. Deposit Approver at Campuses approves and submits the deposit ticket.

    6. Deposit Confirmer at the Depositary Bank confirms, adjusts or rejects a deposit.

    7. Viewer at Campuses, Headquarters or other designated locations views and searches deposits and adjustments and views reports.

    Note:

    A person may be designated as a Deposit Preparer and a Deposit Approver. However, due to separation of duties, the same person cannot prepare and approve a deposit.

  2. Contact your local Planning and Analysis Analyst for names and telephone numbers of the current designated Receipt and Control Coordinator, Accounting Coordinator, and Local Security Administrator for each Campus if needed.

  3. All OTCnet users must complete the training provided on the Bureau of Fiscal Services OTCnet web site prior to being given access to OTCnet.

    1. The Bureau of Fiscal Services web site to provide guidance and training can be found at https://www.fiscal.treasury.gov/fsservices/gov/rvnColl/otcnet/rvnColl_otcnet.htm. Job Aids for the OTCnet Deposit Preparer, Deposit Approver and Agency Viewer can be accessed through this site.

    2. The Bureau of Fiscal Services OTCnet web site will be the source for OTCnet training. The OTCnet Deposit Preparer and Deposit Approver Job Aids should be used for instructions on accessing OTCnet and for preparing and approving deposits in OTCnet. The OTCnet Agency Viewer Job Aid should be used for instructions on accessing OTCnet, searching deposits and adjustments and viewing business reports in OTCnet.

    3. For questions or assistance using OTCnet, contact the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or thru email at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    Note:

    The training web site is used by all agencies using OTCnet and is not customized for any one agency.

  4. The Local Security Administrator must create a profile in OTCnet for each employee identified as an OTCnet user. After completing the online training course, each user must complete the OTCnet user Authorization Form.

    1. The OTCnet User Authorization Form captures information needed to set up an employee as an agency user in OTCnet. The OTCnet Rules of Behavior is signed by each user as a certification of the rules of the Treasury Web Application Infrastructure (TWAI) System Security Plan. (TWAI is an environment that houses Treasury web applications such as OTCnet.) Original signature is required on the OTCnet User Authorization Form and Rules of Behavior Form.

    2. The OTCnet user Authorization Form and OTCnet Rules of Behavior Form verifying successful completion of training can be obtained from your campus LSA.

    3. Managers will submit the employees' OTCnet User Authorization Form and Rules of Behavior Form to your LSA to be granted access to OTCnet.

  5. Once OTCnet permission has been assigned, the employee will receive three emails. The first email will provide the employee a user ID. The second will provide the employee a temporary password and the last will provide the employee permission to OTCnet. After receiving a user ID and password, the employee must login to the TWAI to change their temporary password and provide answers to their secondary authentication questions.

  6. Users must login to OTCnet at least once every 90 days or your access will be deactivated on the 90th calendar day since your last access date. Users that have not accessed their OTCnet account for 120 days will have their access deleted on the 120th calendar day since their last access date. If this occurs, you will be required to reapply for access to OTCnet.

  7. The LSA must be notified within 24 hours if OTCnet access is no longer required by an employee for any reason or if the current access needs to be modified.

  8. Specific guidance for Deposit Preparers, Deposit Approvers and Agency Viewers is provided in printable job aids found in the On-the-Job Resources and Simulations link at https://www.fiscal.treasury.gov/fsservices/gov/rvnColl/otcNet/rvnColl_otcnet_training.htm.

OTCnet Contingency Plan
  1. If OTCnet experiences an outage or if the campus is unable to access OTCnet due to local problems, the deposit ticket WILL NOT be created in OTCnet. Campuses must complete a paper Standard Form 215A (SF 215A) to accompany the deposit. Contact HQ analysts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if you need a supply of the paper Standard Form 215A. Use the following "If /Then" chart to determine the action to be taken if OTCnet is unavailable. The action to be taken will depend upon your status in the deposit process.

    IF THEN
    OTCnet is not available due to an outage (i.e., the problem is internal to the OTCnet system) Users will be notified thru email when the OTCnet system is down. Complete a paper Form 215A, Deposit Ticket, which must accompany the deposit. Immediately contact the depositary bank and Accounting to advise them that a paper Form 215A (SF 215A) is being submitted because OTCnet is unavailable.
    OTCnet cannot be accessed due to local problems at the campus (i.e., in-house server or Internet is not available) Complete a paper Form 215A (SF 215A), Deposit Ticket, which must accompany the deposit. Immediately contact the depositary bank and Accounting to advise them that a paper SF 215A is being submitted because the campus is unable to access OTCnet.
    An OTCnet deposit was begun but not yet saved as a draft and the OTCnet system goes down The OTCnet deposit will not be found in the system upon restoration of normal functionality. No further action is needed in OTCnet. Complete a paper Form 215A (SF 215A), Deposit Ticket, which must accompany the deposit. Immediately contact the depositary bank and Accounting to advise them that a paper SF 215A is being submitted because OTCnet is down.
    An OTCnet deposit was saved as a draft in OTCnet and the OTCnet system goes down The original OTCnet deposit will be in the system upon restoration of normal functionality. The Deposit Preparer must delete the saved draft of the OTCnet deposit from OTCnet. Complete a paper Form 215A (SF 215A), which must accompany the deposit. Immediately contact the depositary bank and Accounting to advise them that a paper SF 215A is being submitted because OTCnet is down.
    An OTCnet deposit is awaiting approval (from the Deposit Approver) in OTCnet and the OTCnet system goes down The OTCnet deposit was saved awaiting approval and should be in the system upon restoration of normal functionality. The Deposit Approver must reject the deposit awaiting approval and the Deposit Preparer must then delete the deposit from OTCnet. Complete a paper Form 215A (SF 215A), Deposit Ticket, which must accompany the deposit. Immediately contact the depositary bank and Accounting to advise them that a paper SF 215A is being submitted because OTCnet is down.

Trace ID and Custodial Detail Data Base (CDDB)

  1. The Custodial Detail Data Base (CDDB) is an enhancement to the Financial Management Information system created to track all individual payments that comprise a deposit ticket, and balance the individual transactions against the deposit ticket totals which have been entered in the Revenue Accounting Control System (RACS) General Ledger.

  2. As of January 1, 2008, all payments will be assigned a 20 digit Trace ID Number for tracking purposes. CDDB will track all individual payments against the Deposit Ticket totals, which have been entered in the RACS General Ledger. This unique Trace ID Number will allow all payments to be identified and added to the CDDB.

  3. For Manual Deposit Tickets, the Trace ID Number is assigned by the Batch Block Tracking Sytstem (BBTS). The first 14 digits represent the Deposit Ticket Trace ID Number and the last six numbers represent the Transaction Sequence Number of each individual payment that comprises the Deposit Ticket. The Transaction Sequence Number begins with 000001, and is sequentially assigned to payments within a Deposit Ticket.

    1. The format of the 20 digit Trace ID Number is shown below. System ID 15 will be used for Manual Deposits.

      Parts Characters Definition
      Site ID nn SP Campus FLC or other Site ID
      System ID nn As defined in the Deposit Ticket Trace ID Number. The values are identified as follows:
      01 Electronic Federal Tax Payment System (EFTPS)
      02 ISRP Payment Transactions
      05 Lockbox bank Transactions
      10 SITLP Levy Payments
      12 Receipt and Control Manual Deposits for External Leads and Accounting CIR deposits for External Leads (Effective July 15, 2013)
      15 Receipt and Control Manual Deposits
      20 RACS DCF Debit Voucher (DV)
      25 Accounting Deposit Ticket and DV
      30 FTD Deposit Ticket/Debit Voucher
      35 IDRS IA User Fee Sweep
      40 Automated Insolvency Manual DT
      45 Automated OIC Manual DT
      50 ITIN
      55 Field Assistance Function (TAC)
      Deposit Date YYYYDDD Julian Date
      Sequence Number nnn For each Deposit Date, begin with 001 and increment each additional Deposit by 1.
      Transaction Sequence Number nnnnnn or zero This field is relevant only in the CDDB Detail Payment Record File. For each payment summarized in a Deposit Ticket, beginning with 000001, sequentially increment the Transaction Sequence Number for each Transaction in the CDDB Detail Payment Record File. DO NOT PRINT THIS FIELD ON ANY DEPOSIT TICKET.
    2. If the BBTS System is not operational and therefore unable to generate Trace ID Numbers and Form 813/Form 813A, the Trace ID Numbers must then be manually constructed for each deposit ticket utilizing the format in IRM 3.8.45.2.3(3)a. Use Sequence Numbers (format position 12, 13 and 14) beginning with 900 thru 999 to avoid duplicating with previously issued BBTS Trace ID Numbers. (Example: nn15yyyyddd900nnnnnn). Utilize the fillable Form 813 (Rev. 09-2009), (Catalog Number 16866C) and Form 813A (Catalog Number 20660A) on the Publishing website (http://publish.no.irs.gov/catlg.html) for input of the Trace ID Number and other information needed for processing. Notify Accounting that the Form 813 must be prepared for processing by Data Conversion to establish the Document Locator Number (DLN) on the Service Center Control File (SCCF), as there will not be an output from BBTS to establish the DLN. See IRM 3.17.30.2.2.3(5), Form 813 Document Register. To ensure Trace ID Numbers are not duplicated, a quick review of all Trace ID Numbers manually assigned should be performed on deposit documentation before entering the deposit information into OTCnet and releasing the work to Accounting and for ISRP processing.

  4. The Trace ID Number for Manual Deposits will be obtained from BBTS. All Manual Deposit employees assigned responsibility for accessing BBTS must submit a Form 5081, Information System User Registration/Change Request to obtain access.

  5. BBTS will print the Trace ID Number on the bottom left of Form 813A and assign a Transaction Sequence Number to each payment on Form 813.

    1. Manual Deposit must access Batch Blocking Tracking System after Form 813A is generated and print a copy of Form 813 with the assigned Transaction Sequence Numbers.

    2. Input the 14 digit Trace ID Number in the CDDB area of the related Deposit Ticket.

    3. Stamp, using the Trace ID Stamps provided by Headquarters, the 20 digit Trace ID Number in the bottom margin of each document.

    4. DO NOT enter the Trace ID Number on the remittance check.

    Note:

    The Trace ID may be manually notated with a green pen/marker if all Trace ID stamps are not operational.

  6. For payments received with returns that must be processed through Manual Deposit, the payment and the return must be separated. A Form 3244 must be prepared to process the payment through ISRP using Transaction Code 610. The ISRP System was not programmed with a Trace ID Number Field for program numbers associated with return processing; only revenue receipt program numbers were programmed with a Trace ID Number Field. To enable the Trace ID Number to be processed through the GMF Pipeline System and to Master File for posting to the CDDB Database, the Document 3244 must be prepared for input to the ISRP System. Stamp the Trace ID number on the Form 3244 as noted in (5)c above. The Trace ID number may be typed when utilizing the electronic version of the Form 3244. The return must also be processed through ISRP with the appropriate non-revenue receipt program number, but DO NOT green rocker the money amount.

    Note:

    See IRM 3.8.45.15(3) for Trace ID procedures for Foreign Deposits.

Control of Source Document

  1. Each campus should establish local procedures for controlling the source documents and remittances throughout payment processing. However, the source documents must remain in searchable order until the correction and balancing processes are complete. IRM 3.8.44.3.1, RPS Control of Source Document. All envelopes should remain with remittances through final deposit

  2. After the deposit is balanced and released to the depository, each campus will coordinate local procedures for routing and distribution of the source documents.

Payment Perfection Procedures

  1. This subsection contains procedures for perfecting documents received in Payment Perfection from the Extraction process.

General

  1. The Payment Perfection function within the Deposit Activity performs analysis and research on remittances and returns/documents that require additional preparation prior to depositing money. They also code or edit for other functional areas to ensure all taxpayer information is available to credit taxpayer accounts.

    1. Checks for $50,000 and over will be identified as a large check and receive priority handling.

    2. Checks for $1 million and over must be expedited for immediate processing.

    3. Batches totaling over $99,999,999.99 should be broken down into two (2) batches.

Remittance Perfection

  1. Types of possible remittances the IRS campus may receive for processing can include any of the following.

    1. Personal Check.

    2. Money Order.

    3. Cashier's Check.

    4. Cash, refer IRM 3.8.45.23, Cash Clerks Function..

    5. Business Check.

    6. Certified Check.

    7. Voucher Check.

    8. Treasury Check.

    9. Draft/Postcard Type Check.

    10. Gold Coins (U.S. Currency Only).

    11. Travelers Cheques.

      Note:

      Taxpayers may also pay taxes by credit card by phone. Types of taxes that can be paid by credit card are listed in IRM 21.2.1.48.4, Credit or Debit Card Payments (Pay by Phone or Internet). Remittance perfection technicians may not process credit card payments to taxpayer accounts. Electronic funds transfer is another payment method. IRM 3.8.45 prescribes procedures for paper remittance processing.

  2. Keep remittance with source document; do not staple together. Prior to processing, remove check stubs and any staples attached.

  3. If payee is IRS only, CASH or blank, stamp United States Treasury on payee line.

    Note:

    The "UNLESS FOR CREDIT TO THE UNITED STATES TREASURY, THIS INSTRUMENT IS NON-NEGOTIABLE" stamp may be used on the payee line if the stamp is small enough as to not cover any other information on the check.

  4. Money orders must have either the name of the taxpayer or TIN. If the TIN is not present or legible, enter taxpayer's TIN as it appears on the accompanying source document.

  5. When travelers cheques are received by mail, compare the counter signature with the original signature. If the signatures match, process the payment.

    1. When travelers cheques are received in person (walk-in customers on an exception basis), witness countersigning and compare to the original signature on the travelers cheque.

    2. If the travelers cheque has only one signature, send it back to the taxpayer.

    3. If the signatures do not match, forward to your local TIGTA office.

  6. When gold coins are received from a taxpayer,

    1. Verify they are U.S. currency.

    2. If not U.S. currency, return to the taxpayer according to IRM 3.8.45.4.9.

    3. If U.S. currency, immediately contact the Property Appraisal and Liquidation (PAL) Specialist at the telephone number shown below. The PAL will take possession of the coins so they can be sold at auction.

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      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡
    4. Gold coins must be stored in a locked safe until they are surrendered to the PAL.

    5. Prepare Form 3210 for signature by the PAL Specialist along with copies of the return and any other documentation/correspondence. Retain copy of Form 3210, tax return and documentation/correspondence for three years following the current calendar year. Also prepare the same package for Accounting to Alert them that a check will be received back from the PAL Specialist that will be deposited and processed to the Acquired Property Account. Coordinate routing of this information locally with your Planning and Analysis Receipt and Control Analyst.

    6. Route tax return to Batching for processing.

    7. Whenever the Gold Coins are auctioned off by PAL, the proceeds will be used to credit the taxpayers account for the amount they owe, with the remainder being applied to Acquired Property. A memorandum should be received from PAL with a Cashiers Check, explaining the breakdown for application of the funds. Follow instructions in IRM 3.8.45.7.38.3. for depositing and routing the accounting packages to Accounting.

Acceptable Remittance
  1. Acceptable remittance is defined as any means of documentation of legal tender and payment. The documentation must contain all valid information shown below to process the payment through the bank:

    1. Payee

    2. Money Amount Written or Numerical

    3. Bank Routing Number

    4. Checking Account Number

      Note:

      If the Bank Routing Number needs to be perfected, research the ABA Key to Routing Numbers handbook published by the American Banker Association.

  2. If other remittance acceptance circumstances arise, contact the Campus Deposit Headquarters analyst.

  3. If the routing number or account number has been torn off or is unreadable and cannot be perfected utilizing bank routing books, the check should be treated as a mutilated check and processed according to procedures in IRM 3.8.45.4.18.

Remittance Not Payable to United States Treasury

  1. If remittance is not made payable to the United States Treasury or one of the acceptable payees listed in IRM 3.10.72.5.5, Extraction of Envelope Contents for Returns and Documents With Remittance, return the remittance to the taxpayer with Letter 2689C or Letter 4480C. Correspondence with the taxpayer to notify of IRS actions concerning the payments received in situations found in IRM 3.8.45.4.3(a) thru (e) below should also be completed. Refer to correspondence procedures.

    1. If remittance is not intended as payment for accompanying return/document, process return/document as "non-remittance." Stamp the remittance "non-negotiable" and return it to the taxpayer with an explanation of Unacceptable Payment. Do Not however stamp a money order as "non-negotiable".

    2. If remittance and return/document are not for IRS, forward to intended receiver.

    3. If the remittance is made payable to Social Security Administration (SSA) and received with SSA Transmittal, overstamp with "United States Treasury" and deposit where received. See also IRM 3.10.72.2.4.5, Social Security Administration (SSA) Transshipments - (CSPC and KCSPC only). The SSA transmittal, "Automated Remittance Control Record from Wilkes-Barre, PA" should be signed, items notated with a check mark and faxed back to the SSA to acknowledge receipt of listed items. A copy of the transmittal should be retained for one year. The ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Contact SSA Remittance Control Management Program Analyst regarding any problems, at ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    4. If a remittance is received that is made payable to the U.S. Treasury and received with a state return and the money amount of the remittance matches the amount shown on the state return, forward the remittance and the return to the state.

    5. If a third party check is made payable to the taxpayer and is an Automated Collection System (ACS) payment, stamp the remittance "seized" and process.

Unsigned Checks/Unsigned Returns

  1. If a remittance is unsigned and the amount of the check can be determined, process the check. The signature line on the check does not have to be stamped "Drawee Bank Obtain Signature."

    Note:

    If the remittance is foreign, return it to the taxpayer.

  2. An unsigned return received with a remittance should be processed with a TC 670. Use local procedures for routing unsigned returns to Code and Edit for correspondence to taxpayer. An edited "R" or stamped "$" should be placed in the Top Left Corner of the return before routing.

  3. An unsigned Individual Master File (IMF) return that was returned for signature and is sent back with proper signature(s) at a later date with/remittance should be processed with a TC 610 (not a TC 670) using the appropriate IRS received date.

    Note:

    An unsigned return may be stamped with a IRS received date if received after the grace period, but should be circled by Code and Edit when they send back to the taxpayer with correspondence requesting signature (plus any other missing/inconsistent items). Code and Edit will edit/stamp "Returned for Signature" and the correspondence date in the bottom margin. Do Not use the correspondence date to post any remit. Ensure you post any remittance with the correct IRS received date (i.e., the date the remit was received with a valid signed return.

Money Amounts

  1. The numeric amount on the remittance will normally be used for processing. There may still be times when the money amount to use is questionable. The following table should be used to determine how to process the payment:

    If Then
    The numeric amount is legible and matches the written amount Process the payment using the numeric amount.
    The numeric and written amounts do not match and the remittance is foreign Return the remittance to the taxpayer with an explanation.
    The numeric and written amounts do not match and the numeric amount matches the source document Process the payment using the numeric amount.
    The numeric and written amounts do not match and the written amount matches the source document Process the payment using the written amount from the remittance. Annotate, in pencil, the amount used above the remittance date line.
    The numeric and written amounts do not match and neither one matches the source document or there is no source document. Research the taxpayer's account to determine if a payment pattern matches either one of the amounts. If a pattern exists for one of the amounts, process the payment with that amount. If a pattern cannot be determined process the payment using the written amount from the remittance. Annotate, in pencil, the amount used above the remittance date line.
    There is a statement on the check "Not Valid For Less Than $XXX.00" and the check amount is less Stamp the check "Non-Negotiable" and return to taxpayer using Letter 2689C or Letter 4480C. Process the accompanying form or document as a non-remittance.
    The numeric amount is illegible or blank Process the payment using the written amount. Annotate, in pencil, the amount used above the remittance date line.
    The written amount is illegible or blank Process the payment using the numeric amount.
    The numeric and written amounts are blank or zero Stamp the check non-negotiable and return to the taxpayer using Letter 2689C or Letter 4480C. Process the accompanying form or document as non-remittance. If the letter and check are returned as undeliverable and the taxpayer cannot be reached by telephone contact, turn the check over to the Operations Manager of Receipt and Control to destroy.
    The numeric and written amounts are illegible OR if a determination cannot be made Contact taxpayer thru telephone to determine the remittance amount. Annotate, in pencil, above the remittance date line the amount provided by the taxpayer. If unable to reach the taxpayer by telephone, stamp the check "Non-Negotiable" and return to taxpayer using Letter 2689C or Letter 4480C. Process the accompanying form or document as non-remittance.
    There is a statement on the check "Not Valid For More Than $XXX.XX" and the check amount is more Stamp the check "Non-Negotiable" and return to the taxpayer using Letter 2689C or Letter 4480C. Process the accompanying from or document as non remittance.
    A completely blank check is received with a remit document Stamp the remittance "Non-Negotiable" and return it to the taxpayer with an explanation of Unacceptable Payment. Process the Form/document as non-remit. If the letter and check are returned as undeliverable and the taxpayer cannot be reached by telephone contact, turn the check over to the Operations Manager of Receipt and Control to destroy.
    A completely blank check is received with a refund/non-remit Form Stamp the remittance "Non-Negotiable" and keep attached to the Form/document. Process the Form/document as non-remit.

    Note:

    The annotated amount is a courtesy and is for internal use only. Remittances are no longer required to be stamped "United States Treasury Guaranteed" .

  2. Counter Signature: Remittances that need an endorsement other than the encoded endorsement should be stamped with the name of the Operations Manager, Receipt and Control.

Canceled Checks

  1. If a canceled check is received with "Endorsement Erased" stamped on the back, process through preferred processing system.

  2. If not stamped "Endorsement Erased" , photocopy both sides of check and attach to any correspondence received. Route to appropriate function. Return check to taxpayer using Letter 2689C or Letter 4480C.

  3. If check is stamped "Account Closed" , forward to Dishonored Checks area. If holes are punched across bank's account number, return to manager. If check is stamped "Secured" but has holes punched in routing numbers, process remittance. If not stamped, return to taxpayer.

  4. If a substitute check that has been processed pursuant to the Check Clearing for the 21st Century Act (Check 21) is returned by a bank, forward the substitute check to the Dishonored Check function.

Discovered Remittances

  1. Cash and non-cash remittances, including credit cards, debit cards and gift cards, found during pipeline processing at the campus after the mail opening operation are discovered remittances. If discovered remittances are identified, refer to IRM 3.8.46, Discovered Remittance.

Discovered Remittances Over 30 Days Old
  1. Discovered remittances that are 30 days or older must be researched by Payment Perfection. Determine the 30 days, first by the Received Date, then by the date of the check if unable to determine the received date. If appropriate, action must be taken to prevent adverse taxpayer impact.

  2. Contact the taxpayer by telephone and ask if a replacement check was sent.

  3. If there is no indication on IDRS that a replacement check has been received, but there is an open control base, contact the responsible employee for instruction as to how the remittance should be handled. If a replacement check was received, ask the responsible employee about the discovered remittance.

  4. If there is indication that the replacement check was received and no open control base, take the following steps:

    1. Stamp the remittance "Non-Negotiable" .

    2. Return the remittance to the taxpayer along with a note indicating why remittance is being returned.

    3. If interest and penalties were assessed on the replacement remittance, complete Form 3465, Adjustment Request and send to the appropriate function for abatement of the erroneous assessment.

  5. If no replacement remittance was received, process using the original IRS received date.

    Note:

    If the check has an expiration date and the current date is beyond it, return the check to the taxpayer as unprocessable. If the check has no expiration date, process using normal procedures.

Seized Checks

  1. Revenue officers may collect levy payments or seize checks as part of their official duties. If the check is only made payable to the taxpayer, or payable to the revenue officer, the officer is required to endorse the check. When a seized check or money order is received without endorsement, and the check was received from a revenue officer on their Form 795 Daily Report of Collection Activity or Integrated Collection System (ICS) Return and Remittance Report, process the check by typing the following statement: "This check and the proceeds thereof have been seized or levied under authority of Title 26, United States Code, Section 6331, for application on the unpaid tax liability of (Name of taxpayer), and is herewith deposited to the credit of the Treasury of the United States, (Name of Territory Manager of the IRS with City and State)."

  2. Endorsement should be placed within the 1.5 inch area beginning at the leading edge of the check.

Unacceptable Payments

  1. Unacceptable Payment of Taxes are items that the Depository Bank will not accept as payment. Any of the following items found in the Payment Perfection Unit must be returned to the taxpayer using Letter 2689C or Letter 4480C.

    Note:

    If these items are not returned immediately, they must be stored in a locked safe.

    1. Gold

    2. Silver

    3. Jewelry

    4. Stamps

    5. Savings Bonds

    6. Treasury Notes

    7. Treasury Bills

    8. Stocks

    9. Treasury Certificates of Deposit

    10. Promissory Note

    11. Gold Coins (other than U.S. Currency)

    12. Deposit Slips or Withdrawal Slips

    13. Credit Card(s)

    14. Debit Card(s)

    15. Gift Card(s)

    16. Tickets to events, lottery tickets, etc.

    17. Obviously fake money, such as monopoly money, oversized billion dollar bills, currency copied with animals or other unusual items printed on the bill, etc.


    Note:

    If a Promissory Note is returned to the taxpayer and the taxpayer sends the note in again citing Public Policy HJR-192, forward the note to the CI Field Office, Attention Special Agent in Charge of the state the taxpayer resides.

  2. Return the items of monetary value exceeding $10 by "Certified" mail, and items under $10 by regular mail, within 24 hours of receipt. Process accompanying returns/documents as non-remit.

  3. Credit/Debit/Gift cards for payment are not processed by the Campus Deposit function. Taxpayers may use a credit card to make payments towards balances owed by telephone. If you receive a taxpayer's credit/debit card or correspondence with their credit/debit card information in the mail, the Deposit function will send the credit/debit card back to the taxpayer using "Certified" mail along with Letter 4480C, advising the taxpayer that the IRS does not have the capability to process credit/debit card payment transactions when the credit/debit card or credit/debit card information is submitted with the return or a return adjustment.

  4. Items of value that cannot be returned because the taxpayer cannot be identified, will not accept, or is undeliverable, should be maintained in a locked safe for the current year plus three years.

    1. If a claim for items being held is received from a taxpayer, return the item to the taxpayer as outlined in IRM 3.8.45.4.9(2) above.

    2. If the taxpayer does not claim the item of value, the Operations Manager will determine the disposition of the item at the end of the retention period.

    3. These items will be recorded on Form 14012, "Records of Contents of Safes/Vaults" . This form is currently available from your Planning and Analysis Analyst. Managers will review this form monthly.

Post Dated Checks
  1. When a post dated check is identified, it must be returned to the taxpayer using the following procedures:

    1. Stamp check "Non-Negotiable" .

    2. Complete Letter 4480C, "Return of Payment to Taxpayer."

    3. Return letter and check to the taxpayer. See Correspondence procedures in IRM 3.8.45.7.8.

    Note:

    Revenue officers may receive post-dated checks with management approval. If they do, the officer must hold the check until the date is valid (not to exceed 10 business days). The Field Office Payment Processing unit is required to return any post-dated check to the revenue officer and issue Form 5919, Teller's Error Advice.

MoneyGram Receipts

  1. Do not process MoneyGram receipts as a form of payment. MoneyGram is a wire transfer service. Funds are transmitted electronically from MoneyGram to the recipient. Forward receipt and any correspondence to Accounts Management.

Bill of Exchange
  1. If a Bill of Exchange or Registered Bill of Exchange is received from a taxpayer authorizing the campus to settle their account through FedWire, send everything received to the following address:

    Department of the Treasury Office of Executive Secretary
    1500 Pennsylvania Avenue, NW
    Room 3413
    Washington, DC 20220

  2. Complete Form 9814, Request for Mail/Shipping Service, and check "Next Day Air" and "Remittances and Payments" boxes. Forward to your Shipping area.

Questionable Payments

  1. Campuses are receiving questionable remittances that resemble checks and money orders. In most cases, these remittances show the taxpayer and the "United States Bureau of Internal Revenue" as payees. The bogus remittances may include other identifying characteristics. DO NOT PROCESS ANY REMITTANCES CONTAINING THE FOLLOWING CHARACTERISTICS:

    1. Unusual or no financial organization name.

    2. Monetary instruments printed on check quality paper or photocopying paper.

    3. Monetary instruments that reference Title 31 USC 371.

    4. No bank routing information. (All American checks have a nine digit number surrounded by symbols |:|:,e.g., |:123456789|:.)

    5. A lien number.

    6. The words "Certified Bankers Check," "Public Office Money Certificate," "Certified Documentary Draft," "Lien Draft," "Certified Money Certificate," "Do Not Deposit," "Not For Deposit," "For Setoff/Adjustmen/Discharge," "EFT Only For Discharge of Debt" and "Comptroller Warrant."

    7. Bank or Financial Institution does not exist or has gone out of business.

    8. No magnetic encoding.

    9. A sight/site draft that requires a service charge to process.

    10. Non negotiable remittances such as a Lien draft, Certified Banker's Check, Public Office Money Certificate, Certified Documentary Draft, Comptroller Warrant and/or Certified Money Certificate.

    11. Personal checks drawn on the Federal Reserve Bank or any Federal Agency. The Federal Reserve Bank and Federal Agencies do not offer personal checking accounts.

  2. A large majority of the bogus remittances are received by "Certified" or "Registered" mail. They may be accompanied by the following documents:

    1. A letter requesting a refund for overpayment or the taxpayer renouncing his/her U.S. citizenship.

    2. A document titled "WARRANT PROCESSING PROCEDURES" has been attached to several of the bogus remittances. THIS IS NOT A LEGAL OR VALID DOCUMENT. DO NOT PROCESS A REMITTANCE BECAUSE IT IS ATTACHED TO THE WARRANT PROCESSING PROCEDURES,

  3. Upon receipt of a suspicious remittance, process using the following procedures.

    1. Avoid removing evidence, lifting finger or palm prints, handling the remittance, envelope and any correspondence as little as possible. Place remittance in a check saver.

    2. If there is any doubt about the legitimacy of a particular payment, immediately contact your manager and the manager should then contact the Remittance Security Coordinator. The Remittance Security Coordinator should then determine if they should contact the Fraud Detection Center or the local Office of the Treasury Inspector General for Tax Administration (TIGTA) in your Campus.

    3. Do not contact the taxpayer, payer, banking institution or remitter indicated on the remittance to ascertain if the item is legitimate or not.

    4. Do not refer or discuss the questionable remittance with anyone or any Agency outside the IRS. This includes supplying photocopies or faxing the item to anyone other than an authorized IRS employee.

    5. In the event the Fraud Detection Center chooses not to pursue the matter, return the phony remittance to the taxpayer using Letter 2689C or Letter 4480C. In addition to including the remittance in the letter, state the Campus' Director or delegated Service employee who has the authority to refuse acceptance of a remittance if there is doubt that it would be honored upon presentation to a financial institution. The appropriate definition should be included as the basis for return of the remittance.

    6. Do not issue Form 809, Receipt for Payment of Taxes, for questionable or known bogus remittance. If the remittance is deemed credible and returned to the site for processing, Form 809 may be issued at that time.

    7. Prepare Form 3210, Document Transmittal for any questionable payment released to the Fraud Detection Center (FDC). Annotate on Form 3210 the taxpayer's name, TIN, type of payment (i.e., check, draft, money certificate), payment amount, tax form, tax year, received date, and/or any other pertinent information concerning the payment. The legible signature and title of the Fraud Detection Center employee to whom the questionable payment is released must also be shown on Form 3210.

Return/Document

  1. Returns or documents may need additional processing. Payment Perfection Unit will work to perfect these documents.

Imperfect Returns or Documents

  1. Imperfect returns or documents requiring additional perfection/editing/research prior to depositing remittances. Payment Perfection personnel will:

    1. Edit in green when necessary and where indicated;

    2. Perform necessary research;

    3. Input directly into ISRP or;

    4. Route returns/documents to Pre-Batch.

Processing Payments Received with a 2-D Barcode Notice
  1. To protect taxpayer’s identity information the Office of Privacy, Governmental Liaison and Disclosure (PGLD) has initiated a project to replace the printed SSN on selected taxpayer non-balance due notices with a 2-D Barcode. This effort will eliminate or reduce the full display of taxpayer Social Security numbers on these notices. PGLD has supplied each Submission Processing Campus Receipt and Control Operations with two handheld scanners that will read the 2-D Barcode and provide taxpayer information needed to process the payment if received with these non-balance due notices.

  2. The scanner can be used by holding the scanner and pulling the trigger button to scan the 2-D Barcode on the notice, or the scanner can be placed in the provided stand and simply scan the 2-D Barcode by running the notice under the scanner. The following are general instructions for using the scanners.

    1. Plug the scanner into the USB Port of your computer.

    2. Access Microsoft Word.

    3. A copy of the “Configuration Barcodes For Notices” sheet, that should have been received with the scanners, will need to be used to obtain the information needed for processing the payment. Scan the appropriate Barcode on the “Configuration Barcodes For Notices” sheet of paper and listen for the beep.

    4. After the beep, then scan the 2-D Barcode on the notice. The scanner should beep again and the taxpayer information should appear in the Microsoft Word document on the computer screen.

    5. If the scanner fails to identify the SSN, use Command Code TPIIP. Refer to IDRS Command Codes Job Aid. Command Code TPIIP uses the last four digits of the SSN and the first ten characters of the last name (or less, if there are less than ten characters in the last name) to search for the matching name(s) and address(es).

  3. The scanners should be placed in a locked cabinet after hours of operation.

  4. If any balance due notices are received with a 2-D Barcode and no scan line, please contact HQ analysts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

2-D Barcode Scanner Maintenance/Repair
  1. If problems are encountered with the scanners not working properly, please coordinate with your Planning and Analysis Analyst for assigning responsibilities to get the scanner repaired. Each campus will be responsible for shipping and receiving scanners for repair and/or replacement. The Scanners are a product of Motorola Solutions Inc. and requests for maintenance can be made on-line or by telephone.

  2. How to Initiate Your Product Repair Online.
    To help ensure smooth processing of your product repair, please note that a Return Materials Authorization (RMA) is required for all repairs sent to the Motorola Service Center. The online request system provides you with the ability to request an RMA any time of the day or night. In addition, you are able to check the real-time repair status of products submitted using the online RMA process. The steps below outline how to set up your User ID and password and initiate repair RMAs through the online request system. Review the Online RMA Guided Tour for detailed instructions on how to use this tool. If you have any questions about the RMA process or web portal registration, please send an email to SymCare@motorola.com. Motorola cannot service products submitted without an RMA. Products returned to Motorola without this authorization will be returned without repair.

    Register for Online RMA Access
    To enter an RMA (repair request) and link to the service records, you must complete a one-time online registration and receive a User ID and password that you will use each time you visit the site.

    1. First, access the following website to register for a password: https://motorola-global-portal.custhelp.com/app/mcp/service/

    2. Complete the registration process to receive a confirmation email with your User ID and password.

    3. You can now log into the Online RMA website at http://mysymbolcare.symbol.com

    How to Request a Repair RMA
    Once you have obtained a User ID and password for online support, you may enter RMA requests for products requiring repair.

    1. Log into the Online RMA website at http://mysymbolcare.symbol.com

    2. Enter your User ID and Password into the fields provided, then click “Go”

    3. In the “Users - The Americas” folder, under “Shortcuts” click “Request a Repair Authorization (RMA)”

    4. Select the return shipping site (only one allowed per online repair request)

    5. Enter the product serial number on the unit you wish to send in for repair. Make sure to enter the entire serial number into the field as your service contract entitlement is checked based on the serial number entered.

    6. When prompted, “Validate Product Information”, please verify the service entitlement shown.

      Note:

      If you chose to disagree with the entitlement shown, please provide detailed information explaining why there is a discrepency in the records. Motorola will review the information regarding entitlement for this unit and contact you to resolve any questions.

    7. Select Primary Symptom from the drop-down menu. Indicate the reason for the repair of your product. Select the best primary symptom from the drop down menu provided. If additional symptoms exist, please provide details in the Problem Description text box.

    8. Your Ref. No. is generated. This field is provided for your internal reference and can be used to track the status of your repair.

    9. If you have more products to add, enter the serial number. If there are no additional products, click “Proceed to Checkout”.

    10. Review your shipment. When satisfied, click Checkout to continue.

    11. All products will be returned to the address shown in the RMA. Please ensure that the shipping address is correct.

    12. Click Continue to complete the RMA process. You will see a message that “Your RMA # MSC00000 has been confirmed”. You are authorized to return only the quantities and models listed in your RMA. This RMA number will expire in 30 days if the items are not received by the Service Center.

    13. Print two copies of your packing slip from the browser (select “file”, then “print”.) Include one copy of the packing with the returned product and keep the other copy for your records.

    14. Box the product(s) properly for safe shipping. You must include the packing slip in the shipping container. IMPORTANT: Do not include any accessories (batteries, cables, power supplies, memory cards, stylus, etc.) in the shipment.

    15. Print the shipping label and paste it on the outside of the container for shipping to the Motorola Service Center.

    Displaying RMA Status using the online system
    The online system provides you with the ability to check the real-time repair status of products submitted using the online RMA process. To check the status of a repair:

    1. In the “Users - The Americas” folder, under “Shortcuts”, click “View RMA Status On Line”.

    2. Enter either the RMA number, your Ref. No. or the product serial number in the fields provided, click on “Search”. Click on the “+” to view details.


    Quick Tip - For quick access to the online system and a guided tour of the online RMA process, please visit http://www.symbol.com/5586

  3. How to Initiate Your Product Repair by telephone - Calling the Support Center
    The Motorola Enterprise Mobility support center is your point of contact for all calls and questions on Motorola Enterprise Mobility products.

    How to Request a Repair RMA by Telephone
    The preferred method of obtaining an RMA is with the online RMA system; however, you can call Motorola’s support center at 1-800-653-5350 to obtain an RMA over the phone during normal business hours. You will be asked to provide your Customer ID / Site ID and the serial number of the product. You must also specify the return shipping address of the product once it is repaired by Motorola.


    To place a call for technical assistance:
    The support center provides two types of assistance:

    • “Non-technical” for help in tracking products sent for repair or general administrative questions

    • “Technical” assistance for expert help in resolving technical questions about a product or problem resolution with your enterprise mobility products.

    Call 1-800-653-5350 (U.S. Toll-free) or 1-631-738-6213. Be prepared to provide:

    • Customer ID (previously referred to as Site ID)

    • Serial # of product

    • Problem description

    • Contact name and number

    When prompted, please follow the prompts and select the appropriate option for technical assistance. You will then be prompted for the type of product (this is the product family, such as scanner, mobile computer, etc.)

Perfect Returns or Documents

  1. Perfect returns or documents contain a legible taxpayer name, taxpayer identification number (TIN), e.g., employer identification number (EIN), only for Form 5330 and Form 8288), one Master File Type (MFT) code, multiple tax periods, one plan number (Form 5330, Form 5500 series and Form 5558 only), and one remittance.

    1. Sort and batch returns/documents by current, prior, fiscal year and/or full paid and part paid.

    2. Do not detach duplicate copies of return/documents. Annotate copy or duplicate.

    3. Date stamp prior year delinquent returns, if Date stamp is missing, and all Form 4506s/Form 4506-Ts, Request for Copy or Transcript of Tax Return.

    4. Edit name control on Business Master File (BMF) returns/documents if check digits are not present. Edit name control on Individual Master File (IMF) return/documents if two last names are present.

    5. If "Balance Due" entry (returns only) matches remittance for accompanying return, perfect for ISRP or Manual Deposit. Otherwise review remittance to determine tax type/year and SSN/EIN.

    6. If no plan number is present on Form 5330, Form 5500 series, and Form 5558, contact Ogden Submission Processing Campus (OSPC) Entity for appropriate IDRS research to verify correct plan number.

Return/Document Perfection for ISRP Processing (Not in the Same Unit)

  1. BMF original returns/documents processed through ISRP must include certain information. If not present, edit the source document with the missing information.

    1. EIN.

    2. Check digit or name control.

    3. Tax Period must be edited in YYMM format if not present or fiscal year.

    4. Total amount shown in penalty and interest box acceptable if included in payment.

    5. Received Date. See IRM 3.8.45.4.15(7) below for further instructions.

  2. BMF documents other than original forms must contain the information listed below. Edit the missing information on the source document.

    1. EIN.

    2. Check Digit or Name Control.

    3. Tax Period edited in YYMM format.

    4. Transaction Code (TC).

    5. Master File Tax (MFT) Code.

    6. Received Date. See IRM 3.8.45.4.15(7) below for further instructions.

  3. IMF original returns must contain the information listed below. Edit the missing information on the source document.

    1. SSN/ITIN.

    2. Name (name control when two last names are present).

    3. Tax Period, edited in YYMM format for fiscal year.

    4. Received Date. See IRM 3.8.45.4.15(7) below for further instructions.

  4. IMF documents other than original must contain the information listed below. Edit the missing information on the source document.

    1. SSN/ITIN.

    2. Name (name control when two last names are present).

    3. Tax Period edited in YYMM format.

    4. Transaction Code.

    5. MFT Code.

    6. Received Date. See IRM 3.8.45.4.15(7) below for further instructions.

  5. IMF return/document received with primary name and ITIN change must be researched. Review returns for indication of Amnesty cases or "new SSN," to determine if SSN is entered correctly.

    1. If taxpayer indicates "new SSN," circle out all other SSNs.

    2. If a copy of a U.S. Immigration and Naturalization Service (INS) letter is attached to the return, transfer SSN/ITIN from the letter to the return.

    3. Do not use SSN on Form W-2. The SSN on the Form W-2 can be used for research ONLY.

    4. If "Applied For" is entered in the SSN box of the return, review attachments for an INS Letter or indication of "new SSN." Taxpayer may indicate that they have filed Form W-7, Application for IRS Individual Taxpayer Identification Number.

    5. If unable to determine correct SSN, process the return through Unidentified.

  6. Use the following procedures for BMF return/document with TIN or name change.

    1. Procedures should be set up between the Entity Function and Deposit Function to have a tax examiner from Entity come to presearch area daily or to fax, email or hand carry to Entity. Procedures should allow for the immediate return of the information to ensure the 24 hour deposit time frame is met.

    2. Assign EINs to returns/documents that are received indicating an EIN has been applied for and not yet assigned.

    3. Entity's tax examiner will be given any other EIN (name) problems to resolve.

  7. Further instructions are as follows:

    1. Date stamp using the "Block Header Date" tag from ISRP.

    2. If no "Block Header Date" , date stamp using the post mark date on envelope.

    3. If no envelope is available or the post mark is illegible, date stamp using the date on the remittance.

Form W-7 Application for IRS Individual Taxpayer Identification Number (For All Campuses Except Austin)

  1. Form W-7 is an application for an individual taxpayer identification number (ITIN) for non-citizens. ITINs may not be issued without a Return or some proof of a need for an ITIN. That means ITINS will not be issued for 2-3 weeks from receipt of the request. Remittances received with Form W-7 should be processed using the procedures below.

  2. When a Form W-7 for a spouse or dependant(s) is received with a remittance and a return with a primary SSN, process the payment through ISRP and apply the payment to the primary taxpayers' SSN.

  3. All Form W-7 received at campuses other than Austin must be forwarded with a Form 3210, Document Transmittal to the ITIN Unit at the following address. Include the return, source documents, and attachments received with Form W-7.


    IRS-AUSPC
    3651 South Interregional Hwy. 35
    Austin, Texas 78741-7855
    ITIN Extraction Stop 6052

  4. When a return and remittance are received with Form W-7 but no primary SSN is present on the return and the primary SSN cannot be determined, process the payment to Unidentified. Route the documentation and a photocopy of the check with the Unidentified written or stamped on it to the Austin Submission Processing Campus (AUSPC) at the address listed above.

  5. When a return and remittance are received and the return indicates "Applied For" (no Form W-7 is attached), the following steps should be taken to process the remittance and return:

    1. Research of the ITIN system may be used to possibly identify the ITIN for payment application. If an ITIN is found, prepare Form 3244, Payment Posting Voucher, for application of the payment. The return should be annotated with the ITIN for further pipeline processing.

      Note:

      A Form 5081 must be input to gain access to the ITIN system for research capabilities. The application "ITIN Other RTS Users (ITIN Real-time System)" must be selected. Employees must have access to the Employee User Portal (EUP) before completing the Form 5081 for the ITIN system. Employees may register for access to EUP at https://eup.eps.irs.gov/eup_login.

    2. If the ITIN cannot be identified, secure an IRSN from the Entity Function to process the payment. Form 9956 may be requested by the Entity function for completion with the needed information for assignment of the IRSN. Coordinate with the Entity function to ensure the 24 hour timeframe for deposit of the payment is met. See IRM 3.13.5.72, Assignment of Internal Revenue Service Numbers (IRSNs). Annotate the corresponding return with the IRSN for further pipeline processing.

    3. During peak season, the Entity function workload may prevent the assignment of the IRSN within the 24 hour timeframe. In these instances, apply the payment to Unidentified and route the IRSN information to the Unidentified Team in Accounting when received back from Entity. A photocopy of the check with the Unidentified DLN written or stamped on it and needed documentation should accompany the Deposit Package that is sent to the Accounting Operations. Annotate the corresponding return with the IRSN for further pipeline processing.

  6. When a Form W-7 only is received with a remittance, apply the payment to Unidentified. Route the documentation and a photocopy of the check with the Unidentified DLN written or stamped on it to the AUSPC at the address listed above.

    Note:

    Failure to write or stamp the Unidentified DLN on the check will result in the Austin Accounting Unidentified Team possibly being unable to identify which Campus to return the ITIN information to for Unidentified processing. This will cause the Unidentified cases to age in the Accounting Unidentified inventory.

Telephone Contact to Taxpayers

  1. If IDRS research fails to identify proper application of a remittance, telephone contact may be made with taxpayers. Strict adherence to disclosure requirements must be maintained. Refer to IRM 11.3, Disclosure of Official Information. Extreme care must be taken when speaking to taxpayers or their appropriate officers to obtain information. Identify yourself immediately. Use Federal Telecommunications System 2000 (FTS2000), whenever possible, to contact taxpayers. If the taxpayer asks for any account information, refer them to 1-800-829-1040. If the taxpayers' phone number is not available on the remittance or document, obtain the phone number from Directory Assistance (FTS, taxpayer's area code, and 555-1212) or any on-line Directory Assistance tools.

    Note:

    FTS is for official Government use only.

    1. Make IMF calls after 9 a.m. during normal business hours, unless a specific time was requested.

    2. Make BMF calls during normal business hours of 8 a.m. - 5 p.m.

  2. The Quality Communication Job Aid http://win.web.irs.gov/am03jax/Ops5/QUALITY%20CORNER/COMMUNICATION%20JOB%20AID.htm provides guidance on the quality of communications and a self-study module.

Specific Name/Functional Area is Identified on the Notice/Letter
  1. A functional area may receive a call regarding any matter assigned to a specific employee or function, usually noted on the notice or letter. If the taxpayer asks for information specific to their account, refer them to 1-800-829-1040.

Mutilated Checks

  1. Mail-opening equipment can mutilate checks during processing. When this occurs, remittance processors should tape the check back together, place in a transparent sleeve, and deposit thru ISRP. The financial institution will determine if a mutilated check can be processed. If it cannot be processed, the check will be returned to IRS by the financial institution and processed by the Dishonored Check function as outlined in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Additional guidance on mutilated checks is listed in the table below:

    If Then
    The payment voucher or accompanying information is unclear, Follow IDRS Presearch procedures.
    The condition of the mutilated check precludes identification of the taxpayer, and there is no posting information, Credit the payment to the Unidentified Remittance File.
    The remittance is not repairable/processable and there is insufficient information to contact the taxpayer, Turn the remittance over to the Operations Manager of Receipt and Control to destroy.

    Note:

    If your financial institution charges extra to process the transparent sleeve thru ISRP, deposit thru Manual.

Returned Refund/Rebate Government Checks for Payment of Taxes

  1. Payment Perfection Unit (PPU) will receive all Government Checks from the Extraction Unit that have been stamped below the "Pay to the order of" line with the following statement "UNLESS FOR CREDIT TO THE UNITED STATES TREASURY, THIS INSTRUMENT IS NON-NEGOTIABLE" .

  2. PPU must separate the valid government checks for payment of taxes from returned refund checks.

  3. All remittances where the payee line is made payable to the United States Treasury, Internal Revenue Service, Commissioner, Department of the Treasury, Social Security Administration or variations of any agency or department of the United States Government should be construed to be a payment to the United States Government.

  4. Process the valid government checks for payment of taxes through normal processing.

  5. Forward the Returned Refund/Rebate Checks along with any document(s) to the Refund Inquiry Unit in a sealed envelope or container using Form 3210, Document Transmittal. Form 3210 must list the following information from each check:

    1. Check Symbol

    2. Check Number

    3. Amount

    If the Refund Inquiry Unit is located in another building, ensure the checks are sealed in an envelope and placed in a lockable canvas bag or container; or double-wrapped and double-sealed in opaque paper envelope or box.


    Note:

    If a returned refund/rebate check is received with a return and the Statute of Limitations is in jeopardy, the return must be cleared by the Statute Control Group before being forwarded to Refund Inquiry with the returned refund check/rebate.

  6. If a Returned Refund/Rebate Check accompanies a valid payment of taxes, or is endorsed by the payee, process as follows:

    1. Prepare a posting document for the valid payment of taxes and process through normal processing.

    2. Apply the payment to the taxpayer's account with TC 670/TC 570.

    Note:

    If a taxpayer returns their Advance Child Tax Credit (ACTC) Check to the IRS, please follow the above procedures as a Returned Refund Check.

  7. Management Reviews. Managerial reviews by the supervisor must be conducted and documented at least quarterly to ensure adherence to internal controls for the security of the returned refund checks forwarded to Refund Inquiry on Form 3210, Document Transmittal. Management may, at its discretion, conduct these managerial reviews at more frequent intervals. The review should ensure all Form 3210s sent to Refund Inquiry are received back and acknowledged with a signature from the appropriate Refund Inquiry official.

Basic Manual IDRS Research for Payment Perfection

  1. The Integrated Automation Technologies (IAT) Tool for Payment Perfection (formerly known as the IDRS Decision Assisting Program (IDAP) Tool for Payment Perfection) should be utilized to perform IDRS research. This subsection provides general guidance for only a few basic scenarios relative to Payment Perfection IDRS research. Refer to these instructions in the absence of the IAT macro for payment research. Also, in this subsection are a few IDRS command codes that are required to be researched in order to apply a payment accurately. This is not an all inclusive list. It is intended only to provide a basic point to begin payment research. There will be situations when more extensive research may be required, for example, the procedures outlined in IRM 3.8.45.10.2. Refer to ADP/IDRS handbooks, referenced IRMs and Job Aids for complete information. There is also much information on SERP: http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/idrs_command_codes_job_aid.htm. The job aids on this site are viewable and easily printed.

    Scenario THEN IF IMF IF BMF
    IF Both IMF and BMF THEN THEN
    a. Payment Received with check only and the only identifying information is the name and address on the check. Research to whom the payment should be applied. Use: CC NAMEB and CC NAMEE for a BMF EIN. CC NAMEI and CC NAMES for an IMF SSN. Determine where (tax-period and MFT) and how (transaction code) the payment should be applied. Use:CC SUMRY to display an index of all tax modules available for a SSN. If no modules exist on CC SUMRY, check CC IMFOLI.CC IMFOLT displays specific tax module amounts, dates including Collection Statute Expiration Date (CSED) and a listing of posted transactions. If multiple tax periods have the same CSED date, apply to the earliest tax period. Determine where (tax-period and MFT) and how (transaction code) the payment should be applied. Use: CC SUMRY to display an index of all tax modules for an EIN. If no modules exist on CC SUMRY, check CC BMFOLI. CC BMFOLT displays specific tax module amounts, dates including CSED and a listing of posted transactions. If multiple tax periods have the same CSED date, apply to the earliest tax period.
    b. Payment received and the only information available is the TIN. Use CC ENMOD to determine necessary entity information. CC INOLE displays name line information available for any TIN. CC INOLEX displays (SSA) name controls, cross-reference, and merge transaction information. Follow the THEN procedures in scenario a. above. Follow the THEN procedures in scenario a. above.
    c. Payment received with TIN, tax period and name of taxpayer. If SSN, go to IF IMF column. If EIN, go to IF BMF column. Apply payment to the SSN, tax period and tax form as indicated. Refer to Document 6209 or IRM 3.8.45.2.1 for appropriate transaction code. Apply the payment to the EIN and tax period and form type designated. Research CC BMFOLI/CC BMFOLT for appropriate MFT, if necessary. Refer to Document 6209 or IRM 3.8.45.2.1 for appropriate transaction code.
    d. Receive a payment without tax period or name and research described in scenario b. indicates the account is in installment agreement status. Research CC SUMRY for the module in Status 60, 61, 63, 64 (Status 14 for Estate Installment Agreements) and apply the payment to the module with the earliest unexpired CSED. (Refer to IRM 3.8.45.10.2 for more detail.) If CC SUMRY indicates that the module with the earliest unexpired CSED has an assessed module balance of zero, post the payment to this module and the system will calculate accruals and roll any remaining balance to the subsequent modules in CSED order. If CC SUMRY indicates that the module with the earliest unexpired CSED has an assessed module balance of zero, post the payment to this module and the system will calculate accruals and roll any remaining balances to the subsequent modules in CSED order.
    e. Receive a payment for an EPMF return that requires a Plan Number. Then research CC EMFOLI for the Plan Number. If Entity or payment information is required, follow steps outlined in scenario a. and b. above.
    f. Receive a payment and research indicates there is no balance due on IDRS or CFOL. Post payment to the current year due. Post the payment to the current year due. Post the payment to the current year due (Form 1120 or current quarter Form 941, as appropriate). To determine appropriate quarter, refer to IRM 3.8.44-2 Date Stamp Column.
    g. A payment is accompanied by the second page of the tax return. Research IDRS to determine if the original return has posted (TC 150 for the tax period). The tax period is contained at the top or at the bottom of the tax return.
    • If the return has posted, input a TC 670 to post the payment.

    • If the return has not posted, input a TC 610 to post the payment.

    CC TXMOD and/or CC IMFOLT CC TXMOD and/or CC BMFOLT
  2. Always check cross-referenced TIN to ensure proper posting.

  3. The IRMs for the above-mentioned IDRS Command Codes are as follows:

    Command Code IRM Reference (Screen Display)
    BMFOL IRM 2.3.59
    EMFOL IRM 2.3.64
    ENMOD IRM 2.3.15
    IMFOL IRM 2.3.51
    INOLE IRM 2.3.47
    NAMEE and NAMEB IRM 2.3.60
    SUMRY and TXMOD IRM 2.3.11

Payment Perfection Procedures For Manual Processing

  1. This subsection contains procedures for Manual Processing.

Payment Posting Vouchers (Non-ISRP)

  1. A Payment Posting Voucher must be prepared whenever a source document is not available and the payment cannot be processed through ISRP. A list of payment posting vouchers follows:

    1. Form 3244, Payment Posting Voucher. See Exhibit 3.8.45-3.

    2. Form 809, Posting Voucher.

    3. IDRS Printout used in lieu of Form 3244.

    4. Correspondence.

    5. Taxpayer Envelope with name and address.

    6. Copy of the Entity Portion of a document in lieu of Form 3244.

Out of Area Non-Master File (NMF) (Transshipment of NMF Returns/Documents)

  1. If a campus receives a remittance with a NMF return/document or a payment that is intended for another campus, it is classified as an Out of Area Non-Master File Return/Document. The receiving Campus must deposit the remittance at their Campus timely and then transship the credit and return to the Cincinnati campus. The Accounting Operation performs the transshipment. Process all Out of Area NMF remittances as follows:

    1. Use return/document as source document.

    2. Green rocker remittance amount on balance due line. Edit and green rocker if not present.

    3. Number return/document.

    4. Date stamp with IRS received date.

    5. Process as a Manual Deposit.

    6. Notate on Form 813A, Out of Area NMF.

    7. Include return/document and all required supporting documentation in Accounting package for transshipping.

Out of Area Master File Returns/Documents with Payments

  1. If a campus receives a remittance with a Master File return/document that is only processed at another campus, it is classified as "Out of Area Master File Returns/Documents" . The out of area receiving campus must deposit the remittance at their campus and then transship the return to the correct processing campus. Refer to IRM 3.10.72, Receiving, Extracting and Sorting.

  2. Process the remittances as follows:

    1. Use return/document as source document.

    2. Refer to Document 6209, IRS Processing Codes and Information for the appropriate transaction code and MFT.

    3. Green rocker remittance amount on balance due line. Edit and green rocker if not present.

    4. If a payment posting voucher is prepared, attach a copy to the back of the return/document.

    5. Date stamp with the IRS received date.

    6. Process the payment thru ISRP.

    7. When remittance processing is complete, transship the return or document to the appropriate campus.

    Note:

    The purpose for the green rocker dollar sign/check mark on the Form 3244 is to indicate to the receiving campus that the return/document did have a payment attached.

Specified Forms and Fees Processing

  1. This subsection describes processing procedures for a variety of specific form and fee types.

Form 706 Series, (CSPC Only)

  1. All Form 706 Series will be processed in CSPC. In addition, Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes for extending Form 706, Form 706-D, Form 706NA, and Form 706QDT are processed by Estate and Gift, then returned to NMF.

  2. If a remittance is received at a campus other than the CSPC campus for the Form 706A , Form 706NA or Form 706QDT, process the remittance through Manual and transship the return to CSPC.

    Note:

    Include the form in the Accounting Operations Package and notate Out of Area Non-Master File Return on Form 813A.

Form 706 Series (Other than CSPC)
  1. If a remittance is received at any other campus for Form 706, Form 706GS(D) and Form 706GS(T), route to Payment Perfection. Payment Perfection will route or fax to the Entity Function to establish the Entity. Process payment through ISRP and transship Forms to CSPC.

  2. If a remittance is received with Form 706GS(D-1), this is a non-remit return. Process the remittance as a Form 706-GS(D) through ISRP and transship Form 706GS(D-1) to CSPC as a non-remit document.

Form 706A, United States Additional Estate Tax Return
  1. Form 706A, United States Additional Estate Tax Return, remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 84

    3. Blocking Series 500-599

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

Form 706D, United States Additional Estate Tax Return Under Code Section 2057
  1. Form 706-D remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 84

    3. Blocking Series 650-699

    4. MFT 53

    5. TC 610

    6. Abstract Number 141

Form 706QDT, U. S. Estate Tax Return for Qualified Domestic Trusts (Filed With Form 706A and 706NA)
  1. Form 706QDT remittances are processed as follows:

    1. Tax Period YYMM year ending

    2. Due date is MM/DD/YYYY yearly return

    3. Tax Class 6 (5)

    4. Document Code 85

    5. Blocking Series 519-524

    6. MFT 53

    7. TC 610

    8. Abstract Number 220

Schedule R-1 Form 706 United States Estate Tax Return (and Generation-Skipping Transfer) Tax Return
  1. Form 706 Schedule R-1 remittances are processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 85

    3. Blocking Series 590-599

    4. MFT 53

    5. TC 670/TC 570

    6. Abstract Number 141

Form 706NA, United States Estate (and Generation-Skipping Transfer) Tax Return
  1. Form 706NA will be processed as follows:

    1. Tax Class 6 (5)

    2. Document Code 05

    3. Blocking Series 000-999

    4. MFT 52

    5. TC 610

    6. Abstract Number 141

Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes (for Form 706, Form 706-A, Form 706-D, Form 706NA, or Form 706QDT)
  1. You may receive from the taxpayer an extension filed for Form 706 series on Form 4768 or a letter requesting an extension. Process through NMF at CSPC. The Tax Class for NMF is 6 and the Doc Code matches the Doc Code for the Form being extended.

    Form 706 Form 706-A Form 706-D Form 706-NA Form 706-QDT
    Tax Class 6 6 6 6 6
    Doc Code 85 85 85 85 85
    Blocking Series 519-524 519-524 519-524 519-524 519-524
    MFT 53 53 53 53 53
    Transaction Code 670 670 670 670 670
    Abstract Number 220 220 220 220 220
  2. These forms will be routed to Estate and Gift function at CSPC for approval/denial.

Form 1120 Series Notices, Processed at CSPC

  1. Some Form 1120Series Notices will be processed in CSPC as NMF.

  2. If a remittance is received at a campus other than the CSPC for the Form 1120 Notice Series that are processed as NMF, process the remittance through Manual and transship the return to CSPC.

    Note:

    Include the form in the Accounting Operations Package and notate Out of Area Non-Master File Return on Form 813A.

Form 1120IC-DISC Interest Charge-Domestic International Sales Corporation Return
  1. Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, route to Manual Processing as NMF:

    1. TC 610

    2. MFT 23

    3. Tax Period

    4. Date stamp

  2. If correspondence is received regarding interest on distribution, route to Manual Processing as NMF:

    1. TC 670

    2. MFT 23

    3. Tax Period

Form 1120-ND, Return for Nuclear Decommissioning Trust Funds and Certain Related Persons
  1. On Form 1120-ND, if "Trustee" or "Disqualified Person" box is checked, route to Manual Processing as NMF:

    1. TC 610

    2. MFT 32

    3. Tax Period

    4. Date stamp

  2. Route to CSPC or OSPC for processing. Refer to "Where to File" Instructions, using this link: http://core.publish.no.irs.gov/instrs/pdf/11508b07.pdf.

Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code (OSPC Only)

  1. Form 4720 may be filed by:

    1. Individuals (self-dealer, disqualified persons, foundation managers) for a personal tax liability.

    2. Organization managers on behalf of the foundation.

    3. Organization managers on behalf of the foundation and for a personal tax liability.

  2. A determination must be made whether the return is being filed on behalf of:

    1. the foundation/organization (Form 4720).

    2. a personal tax liability (Form 4720-A).

    3. both the foundation and personal tax liability.

  3. Process the return and payment according to the remittance shown in Part I, Line 12, and/or Part II-A, Lines a-d on the return.

    Note:

    If Part II-A is blank and information needed to process the payment is on attached documentation, edit in the appropriate column and lines of Part II-A, the information (TINs and amounts) needed to process the payment.

    If remittance Then
    matches the tax amount shown on Form 4720 , Part I, Line 12 process the return as Form 4720. Post the remittance with TC 610, MFT 50.
    matches the tax shown in Part II-A, Lines a-d process the return as Form 4720-A. Post remittance to NMF with TC 610, MFT 66. Prepare Form 4720-A for each signature listed in Part II-A. Edit "4720-A prepared" in the left margin of Form 4720 and send a photocopy of the Document 4720 to Code and Edit.
    is a combination of tax amounts in both Part I, Line 12, and Part II-A, Lines a-d (or Part II-B, Line 1) process Part I as Form 4720 and Part II as NMF Form 4720-A . Post remittances as listed above. Make a complete photocopy of Form 4720 and attach to Form(s) 4720-A. Edit "4720-A prepared" in the left margin of Form 4720 and send a photocopy of the 4720 to Code and Edit.
    the remittance matches the tax shown in Part II-A, but Lines a-d are blank (no SSN or EIN) research for the SSN/EIN of the Self-Dealer. If it is not available, post the remittance to the Organization's EIN using TC 610, MFT 50.

    Note:

    If taxpayer has annotated "Request for Abatement under IRC 4962" or similar wording, photocopy all pages of each Form 4720-A, annotate "photocopy" , and forward to Ogden Accounts Management, Attn: Exempt Organization Accounts. Annotate "photocopy sent to EO Accounts-4962 request" in the left margin of the original Form(s) 4720-A.

Form 5330, Return of Excise Taxes Related to Employee Benefit Plans (Processed at OSPC)

  1. Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, are processed at Ogden Campus only (OSPC) through ISRP (EIN) or Manual Deposit (SSN). For a subsequent payment, process as:

    1. TC 670/TC 570

    2. MFT 76

      Note:

      More than one Form 5330 can post to the same module. If a single remittance is received with more than one Form 5330, the remittance does not have to be split if the EIN/SSN, Tax Period and Plan Number are the same on each form. Use one of the Forms as the payment posting voucher, then batch all of the Forms as remit documents.

  2. If processing the original Form 5330, process with:

    1. TC 610

    2. MFT 76

  3. Form 5330 with a SSN in Block B, "Filer's identification number," is treated as a Form 706. Research BMF using the SSN with definer "V" . If the account is not established on the BMF, OSPC Entity must establish the account so that the payment will post. If the tax period is not indicated on Form 5330 and there is no filing requirement on IDRS, post the payment to the current tax period after it is established by OSPC Entity; otherwise follow the PPU research instructions in IRM 3.8.45.4.20.

    Note:

    Block B is the filer’s identifying number which contains an EIN or SSN. DO NOT edit an EIN from Block E when the SSN is the only TIN present in Block B.

    IF AND THEN
    An SSN is present in Block B Line A is an individual filer DO NOT edit the EIN from Block E. An SSN is a valid identifying number and can be entered by the filer.
    An SSN is present in Block B Line A is corporate Filer Fax the document to Entity to determine the correct TIN.
    Block B is blank. Note: Block B contains fields for an EIN and SSN. There is a TIN in Block E and Block C is blank Edit the TIN from Block E in Block B.
    Blocks B and E are blank Search attachments for proper TIN.
    1. If found edit TIN to Block B.

    2. If not found fax to Entity to determine TIN.

    Multiple TIN’s are present in Block B Search attachments for proper TIN
    1. If found edit to Block B.

    2. If not found, fax to Entity to determine TIN.

    IF an EIN and SSN are present in Block B Line A is blank or can not determine if filer is an individual or corporation Search attachments for proper TIN
    1. If found edit to Block B.

    2. If not found, fax to Entity to determine TIN.

  4. Form 5330 is used as the source document and processed through ISRP (EIN) or Manual Deposit (SSN). For SPCs other than OSPC, after processing remittance transship return to OSPC using "Out of Area Master File Procedures" IRM 3.8.45.5.3.

    Note:

    Use CC EMFOLI to research plan number if missing, or contact Ogden Submission Processing Campus (OSPC) Entity for appropriate IDRS research to verify correct plan number. If the Plan Number cannot be identified through research, edit the Plan Number “999” and process through Manual Deposit.

  5. Form 5330 that is for Non-Master File is processed through Manual Deposit. For campuses other than OSPC, follow Out of Area NMF procedures. See IRM 3.8.45.5.2, Out of Area NMF - Transshipment of NMF Returns/Documents.

    Note:

    A NMF Form 5330 is one that is for tax period 1984 or older.

Form 8821, Tax Information Authorization

  1. Route all Form 8821 to the Centralized Authorization File (CAF) unit. Refer to IRM 3.10.72.15.4 for address of applicable CAF Unit. When the Form 8821 is received with other documents route as follows:

    1. If the Form 8821 is received with a Department of Labor Standards Enforcement (DLSE) payment, route the Form 8821 to the CAF unit and route the payment to:

      Department of Industrial Relations
      Division of Labor Standards Enforcement
      455 Golden Gate Ave., 9th Floor
      San Francisco, CA 94102

    2. If there are any other documents attached, route to:

      Ogden Compliance Service
      CCU M/S 4707

Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests

  1. Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interest, is processed through Manual Processing as NMF.

    1. TC 610

    2. MFT 89

Payment Vouchers

  1. This subsection describes processing procedures for payment vouchers.

BMF Payment Vouchers, Form 940 Series
  1. Federal Unemployment Tax Return (Form 940V), Employer's Quarterly Federal Tax Return (Form 941V), Employer's Annual Federal Return for Agricultural Employees (Form 943V), Employer's Annual Federal Employment Tax Return (Form 944V), and Annual Return of Withheld Federal Income Tax (Form 945V) will be processed through NDP600 Transport. If Transport is unavailable, process through ISRP using program 15503.

  2. Form 940V and Form 940V-EZ

    1. TC 610

    2. MFT 10

    3. Tax Period

    4. After processing, hold for five days and then shred.

    5. If voucher is not scannable, route to ISRP.

  3. Form 941V

    1. TC 610

    2. MFT 01

    3. Tax Period

    4. After processing, hold for five days and shred.

    5. If voucher is not scannable, route to ISRP.

  4. Form 943V

    1. TC 610

    2. MFT 11

    3. Tax Period

    4. After processing, hold for five days and shred.

    5. If voucher is not scannable, route to ISRP.

  5. Form 944V

    1. TC 610

    2. MFT 14

    3. Tax Period

    4. After processing, hold for five days and shred.

    5. If voucher is not scannable, route to ISRP.

  6. Form 945V

    1. TC 610

    2. MFT 16

    3. Tax Period

    4. After processing, hold for five days and shred.

    5. If voucher is not scannable, route to ISRP.

Form 1040V
  1. Form 1040V Scannable, Payment Voucher, will be processed through NDP600 Transport. If NDP600 Transport is unavailable, process through ISRP. The over-the-counter version of Form 1040V may be used at the option of any individual taxpayer who has a balance due.

    1. TC 610

    2. MFT 30

    3. Tax Period 20XX12

    4. If the voucher is not scannable, route to ISRP.

  2. If Form 1040V is attached to a current year Form 1040, move the Form 1040V to the back of Form 1040 and process as a true form through the 7 day grace period after April 15 of each year.

    1. Form 1040 will be sorted Full Paid and Part Paid.

    2. Forward Form 1040 as Full or Part Paid to the Batching Function.

  3. A prior year Form 1040V, including the over-the-counter version, is an imperfect document. Research IDRS to see if a TC 150 return has posted. If so, process the payment as a TC 670 because it is subsequent to the posting of the return. If not, post all prior year Form 1040V vouchers with TC 610.

Form 1041V, Payment Voucher
  1. Form 1041V Scannable, Payment Voucher, will be processed through NDP600 Transport. If NDP600 Transport is unavailable, process through ISRP. The over-the-counter version of Form 1041V may be used at the option of any individual taxpayer who has a balance due.

    1. TC 610

    2. MFT 05

    3. Tax Period 20XX01 thru 20XX12.

    4. If the voucher is not scannable, route to ISRP.

Schedule H (formerly Form 942)

  1. Loose Schedule H (formerly Form 942) (Household Employment Taxes). When a loose Schedule H is received with payment, assume it is for an IMF account unless the word "Trust" or "Estate" is written in the name line area of the Schedule H. Use the Schedule H as a source document and process through ISRP.

  2. If the SSN is present on the Schedule H, process using the following procedures:

    1. TC 670 and TC 570

    2. MFT 30

    3. Tax Period

    4. Forward loose Schedule H to Code and Edit Function, with notation "Loose IMF Schedule H" .

  3. If both the SSN and EIN are present, process the Schedule H under the SSN as specified above.

  4. If the word "Trust" or "Estate" is present, use the EIN and process as follows:

    1. TC 670 and TC 570

    2. MFT 05

    3. Tax Period

    4. Forward loose Schedule H to Code and Edit Function, with notation "Loose BMF Schedule H" .

  5. If the word "Trust" or "Estate" is not present and a SSN is not present, research account for taxpayers' SSN.

    1. If the SSN is found, process as specified in (2)(a) above.

    2. Attempt to find and process with the SSN even if the taxpayer provided an EIN.

    3. If the SSN is not found, research NAMEB for EIN. Process the Sch. H as specified in (4) above, indicating where the payment was applied after editing "Loose BMF Schedule H" or "Loose BMF Schedule H, XXXX06" .

  6. If neither EIN or SSN is present, forward Schedule H and remittance to Entity for assignment of EIN.

  7. Oddball Schedule H: If loose Schedule H is received with an EIN and a BMF name line and it is not a Trust or Estate, process payment using BMF rules above. If the loose Schedule H is received with an EIN and an IMF name line, process payment following IMF rules above.

  8. Process household tax remittance without a Schedule H using the following procedures:

    1. If EIN or SSN is notated on the remittance, process using the applicable procedures above. Prepare a dummy Schedule H, with notation "Loose Schedule H" and indicate where payment was applied. Forward dummy Schedule H to Code and Edit Function.

    2. If remittance has no identifying number, research CC NAMEI and/or CC NAMEB for an identifying number. Process the remittance using applicable procedures above. Prepare a dummy Schedule H, with notation "Loose Schedule H" and indicate where payment was applied. Forward dummy Schedule H to Code and Edit Function.

Form 1065, U.S. Return of Partnership Income

  1. Form 1065, U.S. Return of Partnership Income, is an information return.

    1. When received with remittance and there is no other indication of payment application, post to MFT 06 using TC 670 and process Form 1065 as non-remittance.

    2. If form(s) are attached and remittance matches or adds up to balance due IRS (on forms), process remittance with balance due forms. Process Form 1065 as non remittance.

  2. When the Form 1065 is received with remittance and the top of the Form is annotated "Publicly Traded Partnership" or "PTP" or "3.5 percent tax rate" is annotated above the "Ordinary Income" line 21 of the Form 1065. The remittance will be processed to the partnership (BMF) as follows:

    1. Process thru ISRP

    2. TC 610

    3. Tax Class 2

    4. MFT 06

  3. If Form 1065 is received with remittance, and is tax year 1999 or prior; and the top of the form is annotated "Publicly Traded Partnership" or "PTP" or "3.5 percent tax rate" is annotated above the "Ordinary Income" line 21 of the Form 1065. The remittance will be processed to the partnership (NMF) as follows:

    1. Process thru Manual Deposit

    2. TC 610

    3. Tax Class 6

    4. MFT 06

    5. Doc Code 35

      Note:

      For Campuses other than OSPC, transship Form 1065 to OSPC when remittance processing is complete.

  4. For tax year 2010 only, certain partnerships who did not use all of their Qualified Therapeutic Discovery Credit (grant) were to repay the unused amount by completing Form 4255 and entering the amount in the right margin near line 22 with the notation "QTDP" or "Qualified Therapeutic Discover Credit" on the Form 1065 return. If a remittance with Form 1065 is received with these annotations, or if a remittance is received without a Form 1065, but the check, any correspondence and/or Form 4255 indicates it is for repayment of the "QTDP" process the remittance as follows:

    1. Process thru ISRP.

    2. TC 670/TC 570.

    3. Tax Class 2.

    4. MFT 06

Form 2287(CG), Check/Payment Not Accepted by Bank

  1. If a remittance is received for the replacement of a dishonored check, process the Form 2287(CG) as a TC 670.

Form 3552 (Part 3), Prompt Assessment Billing Assembly

  1. If a remittance is received with Form 3552 (Part 3) in response to a proposed assessment, process through ISRP with TC 670/TC 570 and appropriate MFT. Edit the following if not present:

    1. Name Control

    2. SSN/TIN

    3. TC 570

    4. MFT

    5. Tax Period

    6. Date Stamp

Form 4219, Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes

  1. Form 4219 , Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes, received with Form 941, process Form 941 thru ISRP leaving Form 4219 attached:

    1. TC 610

    2. MFT 01

    3. Tax periods 03, 06, 09 and 12

  2. Form 4219, received without Form 941, indicate EIN from line 2 and tax period from line 4 specified on Form 4219 and process thru ISRP:

    1. TC 670

    2. MFT 01

    3. Forward Form 4219 to appropriate function.

Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

  1. Form 5329, Return for Additional Taxes Attributable to Qualified Retirement Plans (including IRAs), Annuities and Modified Endowment Contracts. If received with Form 1040, attach Form 5329 to Form 1040 and process through ISRP:

    1. TC 610

    2. MFT 30

    3. Tax Period

  2. Form 5329, if received without Form 1040, apply payment to the taxpayers' account and process through ISRP using:

    1. TC 670

    2. MFT 29

    3. Tax Class 4

    4. Tax Period

  3. Route Form 5329 to Submission Processing Image Control Team/Correspondence Imaging System (ICT/CIS).

  4. If a Form 5329 is received without Form 1040 and there is insufficient information to post the payment to a taxpayers' account, prepare Form 3244 in duplicate and apply the credit to Unidentified. Attach the copy of Form 3244 to Form 5329 and route to Submission Processing (ICT/CIS).

Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR)

  1. Form 8082, Notice of Inconsistent Treatment or AAR. If there is no indication of how to apply the payment, use as source document and process through ISRP:

    1. TC 670 with TC 570

    2. MFT 30

    3. Tax Period

    4. Use taxpayer's SSN

    5. Forward Form 8082 to Examination Branch.

Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,900

  1. Form 8615, Tax for Children Under Age 18, Who Have Investment Income of More Than $1,900.00, received with remittance, with or without a Taxpayer Delinquency Investigation (TDI), process through ISRP with the child's SSN:

    1. TC 670 with TC 570

    2. MFT 30

    3. Tax Period

    4. Forward Form 8615 to Submission Processing (ICT/CIS).

Form 8752, Required Payment or Refund Under Section 7519

  1. Form 8752, Required Payment or Refund Under Section 7519. Section 7519 on Form 720 have been deleted and are now processed on Form 8752 through ISRP:

    1. TC 610

    2. MFT 15

    3. Tax Period YYYY12.

Employee Plan (EP) Returns, Form 5330 and Form 5500 Series (OSPC Only)

  1. Monies for EP returns are posted to either Automated Non Master File (ANMF) or BMF.

    1. MFT 74 - Form 5500 series for 1984 and prior years are posted to ANMF. Refer to IRM 3.8.45.7.13, Remittance Received with CP 213 (I) or CP 213 (N).

    2. MFT 76 - Form 5330, Form 5558 for a Form 5330, and Form 5500 for 1985 and subsequent years are posted to BMF.

  2. If the Form 5500, Form 5500SF, Form 5500C/R or Form 5500EZ is not an original and has any correspondence or notices attached, route to:

    OAMC, EP Accounts
    M/S 6552
    Ogden, UT 84201

  3. If a Form 5500, Form 5500SF, Form 5500C/R and/or Form 5500EZ is received and it is annotated as not being an original, the form must be routed to:

    OAMC, EP Accounts
    M/S 6552
    Ogden, UT 84201

    ALL correspondence, notices or other documents received with the Form(s) must be left attached and routed to EP Accounts also.

  4. When Form 5500, Form 5500SF, Form 5500C/R or Form 5500EZ are received with remittance and Form 5330 is attached:

    1. Detach Form 5500 series and route to EP accounts M/S 6552 at OAMC, Ogden, Utah.

    2. Route Form 5330 with remittance to ISRP (EIN) or Manual Deposit (SSN) for processing.

  5. When Form 5500, Form 5500SF, Form 5500C/R or Form 5500EZ are received with remittance and Form 5330 is not attached, prepare Form 3244 or equivalent and number as BMF (MFT 74).

    1. TC 670 and TC 570 (enter in other debit box), edit remittance amount for both TCs.

    2. MFT 74.

    3. Tax Period and Plan Number. The Plan Number must be entered on the Form 3244 in the Tax Period block; for example, 200312/003.

    4. Write applicable "Form 5500" series and "Penalty" in the "Remarks" section.

    5. Process original Form 3244 with Form 5500 series and copy of Form 3244 attached through ISRP.

    6. Fax a copy of the Form 3244 and first page of Form 5500 series to EP Accounts ≡ ≡ ≡ ≡ ≡ ≡ .

      Note:

      If Form 5500-EZ is received with remit and Form 14704 is attached to the oldest tax period, keep the package together. Apply payment to the correct tax period. Route the package of return(s) to EP Entity, M/S 6273, instead of Batching.

    7. Transship Form 5500 series following Exhibit 3.10.72-1.

  6. If photocopy of first page of Form 5500, Form 5500SF, Form 5500C/R or Form 5500EZ is received from EFAST vendor with remittance, prepare Form 3244 or equivalent, and number as BMF (MFT 74).

    1. TC 670 AND TC 570 (enter in other debit box.) Edit remittance amount for both TCs.

    2. MFT 74

    3. Tax period and Plan Number. The Plan Number must be entered on the Form 3244 in the Tax Period block, for example 200312 / 003.

    4. Write applicable Form 5500 series and penalty in the "Remarks" section.

    5. NMF screen print of transcript for Form 5500 Account for 1984 and prior years must be attached to Form 3244. Form 3244 and copy of the return is not valid supporting documentation. Refer to IRM 3.17.46, Automated Non-Master File Accounting, for approved supporting documentation in lieu of an ANMF screen print or transcript.

    6. Process original Form 3244 with Form 5500 series and copy of Form 3244 attached through ISRP.

    7. Fax a copy of the Form 3244 and first page of Form 5500 series to EP Accounts ≡ ≡ ≡ ≡ ≡ ≡ .

    8. Transship Form 5500 and supporting documentation per Exhibit 3.10.72-1, Receiving, Extracting, and Sorting.

  7. If remittance is attached to Form 5558 , Application for Extension of Time to File Certain Employee Plan Returns, follow procedures in IRM 3.8.45.7.27. Verify which form the extension is being filed for.

    1. If Part III is completed for Form 5330, route to ISRP (EIN) or Manual Deposit (SSN) for deposit. Form 5558 must be transshipped to OSPC Code and Edit Function.

    2. If Part II is completed for the Form 5500 series, prepare Form 3244 for BMF processing. Use TC 670 and TC 570 (in "Other Debit" box), Edit appropriate "Form 5500" series and "Penalty" in "Remarks" section. A three digit Plan Number must be present. If no Plan Number is present, contact OSPC Entity. Route Form 5558 to OSPC Code and Edit Function. Fax a copy of the Form 3244 and Form 5558 to EP Accounts ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

DFVC (Delinquent Filer Voluntary Compliance) Program

  1. The DFVC Program or Delinquent Filer Voluntary Compliance Program incorporates the Form 5500 series of forms.

    Note:

    Form 5500EZ filers do not qualify for the DFVC Program

  2. Form 5500 or Form 5500-C received with checks made payable to "U.S. Department of Labor" with notation "DFVC Program" , "Apprenticeship and Training Plan/DFVC Program" , or "Top Hat Plan/DFVC Program" should not be deposited by IRS. Forward return and check with Form 3210 following PII Guidelines and using overnight traceable mail to:

    US Department of Labor - EBSA
    Attn: DFVC Program - Jennifer Warner
    122 C Street, NW Ste 400
    Washington, DC 20001

    Note:

    See IRM 3.13.62, Media Transport and Control for transshipping procedures.

  3. Form 5500 or Form 5500-C received with checks made payable to IRS with notation of "DFVC Program" should be deposited by IRS following procedures in IRM 3.8.45.6.17.

Exempt Organization Returns (OSPC Only)

  1. An exempt organization is one which meets the exemption status based on many factors contained within the groups charter of organization. These are all processed at the Ogden Submission Processing Campus.

  2. If a remittance is received with Form 990, Form 990BL, Form 990EZ, Form 990PF, Form 990T, Form 5227, or Form 1041A process as follows:

    1. TC 610

    2. The MFT varies as follows:

      Form Applicable MFT
      Form 990 MFT 67 (BMF and NMF)
      Form 990BL MFT 56 (NMF)
      Form 990EZ MFT 67 (BMF and NMF)
      Form 990PF MFT 44 (BMF and NMF)
      Form 990T MFT 34 (BMF and NMF)
      Form 5227 MFT 37 (BMF) and MFT 57 (IMF)
      Form 1041A MFT 36 (BMF) and MFT 35 (NMF)
    3. Tax Period

    4. Edit remittance amount in green.

    5. Route to Manual Processing.

    6. For Campuses other than OSPC, follow Out of Area NMF procedures for transshipment to OSPC. See IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents.

Installment Agreement User Fees (IAUF)

  1. Beginning January 1, 2010, Installment Agreement User Fees will be processed systemically by a weekly IDRS Correction Run known as the User Fee Sweep. IDRS Research for Installment Agreement User Fees is no longer necessary. Apply the full amount of the payment to the taxpayer's account using the appropriate payment Transaction Code.

Exempt Payment/Exempt Organization User Fees (CSPC Only)
  1. Process EP/EO Determination Letter Application User Fees Remittance received with Form 1023, Form 1024, Form 1028, Form 3115 (Only if the Exempt organization box is checked), Form 5300, Form 5301, Form 5303, Form 5307, Form 5308, Form 5310, Form 4461, Form 4461A, Form 6406 (with or without Form 8717 and Form 8718 attached), Form 8717, Form 8718, Form 8940 or Voluntary Compliance Resolution (VCR) Program Fee-EP Processing Letters received with fees.

    Note:

    If a payment is received with a Form 3115 and the Exempt Organization box is not checked, route the payment to the address referenced inIRM 3.10.72.5.13(5), Extracting and Routing - Form 3115,Application for Changein Accounting Method, for other than Exempt Organization.

    Note:

    A Letter Application User Fee is no longer required for Form 1128. If a payment is received with Form 1128 research and apply accordingly.

  2. Remittances received with Form 2553, with or without correspondence, should be returned to taxpayer with Letter 2340C. Write letters "UFR" on form to indicate User Fee remittance received and returned.

    1. Route Form 2553 to Entity Control.

    2. If remittance is greater than the amount shown for User Fees, deposit the entire remittance and apply the excess amount to taxes due. Send Letter 2340C to taxpayer for notification.

    3. Route correspondence to Accounts Management, indicating "User Fees."

  3. Remittances received for Examination User Fees, with Form 3244A from field offices should be processed using the following procedures.

    1. Green rocker the document with payment on lower right corner.

    2. Input the deposit data through ISRP using Account Symbol 20-2411.

    3. Route memorandum, copy of DT, and copy of the General Fund Remittance Recap Report to Accounting Operations on Form 3210.

    4. If cash is received for a User Fee, a separate Form 809 is required.

Exempt Payment/Exempt Organization User Fees (Other than CSPC)

  1. Process through Manual Deposit.

  2. EP/EO User Fees Remittances received with Form 1023, Form 1024, Form 1028, Form 3115 (Only if the Exempt organization box is checked), Form 5300, Form 5301, Form 5303, Form 5307, Form 5308, Form 5310, Form 4461, Form 4461-A, Form 6406, Form 8717, Form 8718 and Form 8940 are for entities requesting tax exempt status. Process them using the following procedures:

    1. Photocopy check and attach to front of form.

    2. Green rocker the document with the payment amount on lower right corner.

    3. Encode remittances. Identify "EP/EO User Fees on encode tape" .

    4. Prepare Form 2221 in triplicate. Notate on Form 2221"Out of Area EP/EO User Fee" .

    5. Prepare DT using Account Symbol 20-2411.

    6. Route memorandum copy of DT, 2 copies of Form 2221 and documents to the Accounting Operations for transferring to CSPC.

    Note:

    If a payment is received with a Form 3115 and the Exempt Organization box is not checked, route the payment to the address referenced inIRM 3.10.72.5.13(5), Extracting and Routing - Form 3115,Application for Changein Accounting Method, for other than Exempt Organization.

    Note:

    A Letter Application User Fee is no longer required for Form 1128. If a payment is received with Form 1128, research and apply accordingly. Send form to Cincinnati for processing.

    Note:

    If user fee payment is received with correspondence and no form, prepare payment posting voucher, green rocker deposit amount and apply payment with TC 670, MFT 67, and to the current tax period. Send copy of payment posting voucher along with the correspondence to the following address:

    Internal Revenue Service
    550 Main St
    RM 4024
    Cincinnati, OH 45202

  3. If the EP/EO User Fee Form does not have an EIN, research IDRS. If an EIN cannot be determined, forward to the Entity function to assign a temporary EIN.

  4. Form 2553 is sometimes received with a remittance. Form 2553 DOES NOT require a payment. The remittance should be returned back to the taxpayer along with Letter 2340C.

Exempt Payment/Exempt Organization or Form 906 Closing Agreement (CSPC Only)
  1. Process Anonymous Agreements through Manual Deposit:

    1. Prepare Form 3244 if one is not received.

    2. TC 640

    3. Tax Class 6 (4)

    4. Document Code 62

    5. Send Form 3244 and all correspondence to Accounting Operations with the deposit package.

    6. Notate on Form 813A"Out of Area NMF Deposit for campuses other than CSPC" .

  2. Taxpayer Agreements processed as Manual Deposit:

    1. Prepare Form 3244 if one is not received.

    2. TC 670

    3. Tax Class 6 (4)

    4. Document Code 27

    5. Send Form 3244 and all correspondence to Accounting Operations with the deposit package.

User Fees for Letter Rulings, Determination and Option Letters (CSPC Only)
  1. Taxpayers who are requesting letter ruling, determination letters and opinion letters from the IRS are subject to a user fee for this service.
    Examples of such instances are as follows:

    1. Rev. Proc. 2003-16 provides guidance to taxpayers applying to the IRS for a waiver of the 60-day IRA roll-over requirement, for this determination letter request the taxpayer is charged a fee.

    2. Rev. Proc. 8621, 1986-1C.B. 560 allow employees whose tip income are reported on Form 8027 to petition for a lower percentage rate on their allocated tips. For this determination letter request a user fee is charged.

  2. Process these types of payments as follows:

    1. Process through Manual Deposit.

    2. Photocopy check and attach to front of form/correspondence/documentation.

    3. Green rocker the document with the payment amount on lower right corner.

    4. Encode remittances, identify User Fee on encode tape.

    5. Prepare Form 1963 or Form 2221 in triplicate, notate Out of Area User Fee.

    6. Prepare DT processing the payment to the 6310 Account using Treasury Account Symbols (TAS) 20-2411.

    7. Route Memorandum copy of DT, 2 copies of Form 2221 and documents to the Accounting Operation.

      Note:

      For payments received at a campus other than CSPC, deposit the check following a-g above and route the Accounting package to Accounting for transferring to CSPC.

Private Letter Ruling (PLR) Also Known As Ruling Letter Assessments (CSPC Only)
  1. IRC 1362(f)(4) allows the Service to enter into an agreement via a Private Letter Ruling (PLR), hereafter referred to as "Ruling Letter" , with certain S Corporations to waive the termination of their S Election. Upon completion by Chief Counsel, a copy of the Ruling Letter is faxed from Headquarters to the Cincinnati Submission Processing Campus for assessment on the ANMF database.

    Note:

    These (PLR) Ruling Letters should not be confused with the User Fees for Letter Rulings, etc. as cited in IRM 3.8.45.6.21.2.

  2. In order to ensure proper application to the ANMF account, the taxpayer is instructed to send his/her remittance with a copy of the Ruling Letter as follows:

    Internal Revenue Service
    Cincinnati Service Center
    201 West Rivercenter Blvd.
    Covington, KY 41011
    Stop 31
    Attn:
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Manual Deposit

  3. Prepare Form 3244 as follows:

    1. Tax Class: 6

    2. Doc Code: 27

    3. MFT: 31

    4. TC: 670

    5. Blocking: 300-399

    6. Abstract #: 006

    7. Tax Period: Use the Date in the upper right portion of the Ruling Letter

    Attach Form 3244 to the front of the Ruling Letter for inclusion in the Accounting Package.

Title 31 Monetary Penalty Assessments (CSPC Only)
  1. The American Job Creation Act of 2004 provides IRS the authority to impose a monetary penalty against any representative that practices before the IRS for certain conduct. Before the 2004 Act, there was only the authority to suspend or disbar a practitioner from practice before the IRS. This monetary penalty is processed under Title 31 U.S.C. 330. The volume is minimal.

  2. Title 31 Monetary Penalty cases are exclusively handled by the Office of Professional Responsibility (OPR). OPR will enter into a Settlement Agreement similar to a Closing Agreement or a Final Agency Decision with the practitioner, firm or entity. National Office will transmit the Settlement Agreement or Final Agency Decision to the Cincinnati Submission Processing Campus for an Excise tax assessment via the Automated Non-Master File (ANMF) database.

  3. OPR will secure the payment from the practitioner, firm or entity and prepare Form 3244-A. OPR will send the payment, a Form 3210, related Form 3244-A and a copy of the transmittal memorandum via overnight delivery as follows:

    Internal Revenue Service
    Cincinnati Service Center
    201 West Rivercenter Blvd.
    Covington, KY 41011
    Stop 31

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Manual Deposit

    Note:

    If remittance must be held overnight, OPR will place the payment in a secure locked cabinet.

  4. Review Form 3244-A for completeness and number as follows:

    Tax Class: 6 (4)
    Doc Code: 27
    MFT: 28
    Abstract #: 147
    TC: 640
    Blocking: 435-440

    Include Form 3244-A in the Accounting Package.

Freedom of Information Act (FOIA) — (Atlanta Only)

  1. For remittances and documents received pertaining to the Freedom of Information Act, Right of Privacy, Ex Parte Court Orders and Subpoenas for Production of Records, forward on Form 3210 to the following Disclosure Office address for processing. See IRM 21.3.3.4.10(11), Taxpayer Inquiries and Complaints.

    Internal Revenue Service
    2980 Brandywine Road
    Suite 209
    Chamblee, Georgia 30341

Form 1040C, U.S. Departing Alien Tax Return (AUSPC Only)

  1. Form 1040C, U.S. Departing Alien Return, is processed at the Austin Submission Processing Campus. Campuses other than Austin that receive these forms with payment may use the form as the source document. Process the remittance and Form 1040C:

    1. TC 610 and MFT 30.

    2. When remittance processing is completed, transship Form 1040C and all attachments to Austin using transmittal Form 3210.

    3. Date stamp Form 1040C.

    4. Include a copy of the remittance with Form 1040C.

Form 1040NR, U.S. Nonresident Alien Income Tax Return (AUSPC or CSPC Only)

  1. Form 1040NR, U.S. Nonresident Alien Income Tax Return, can be processed at the Cincinnati Submission Processing Campus when the "Estate or Trust" box in the upper right corner is checked and at the Austin Submission Processing Campus when the "Individual" box is checked. Campuses that receive these forms with payment may use the form as the source document.

  2. If Form 1040NR has an SSN and/or the "Individual" box is checked, process as IMF:

    1. TC 610 and MFT 30.

    2. When remittance processing is completed, transship Form 1040NR and all attachments to Austin using Form 3210.

    3. Date stamp Form 1040NR.

    4. Include a copy of the remittance with Form 1040NR.

  3. If Form 1040NR has an EIN and/or the "Estate or Trust" box is checked, process as NMF:

    1. TC 610 and MFT 20.

    2. When remittance processing is completed, transship From 1040NR and all attachments to Cincinnati using Form 3210.

    3. Date stamp Form 1040NR

    4. Include a copy of the remittance with Form 1040NR.

Last-in First-out Payments (LIFO) — (CSPC Only)

  1. Last-in First-out (LIFO) Payments provide relief for automobile dealers that elected the LIFO inventory method and violated the LIFO conformity requirement by providing, for credit purposes, an income statement covering a taxable year that fails to reflect the LIFO inventory method in the computation of income.

  2. These payments will be processed by the Cincinnati Campus. However, if a remittance is received in a Campus other than Cincinnati, that receiving SPC must deposit the remittance and process as out of area NMF. See IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents. Accounting Operations will transfer to CSPC through Form 2158, Credit Transfer Voucher. Upon receipt, CSPC will reclassify from Revenue Receipts to the General Fund.

  3. Each installment must be accompanied by a memorandum providing the information listed below:

    1. Name

    2. Address

    3. EIN

    4. Amount of taxpayer's LIFO reserve

    5. Total settlement amount

    6. Amount of the installment being paid

    7. Statement identifying the payment as the first, second and third installment; or a statement that the taxpayer elects to pay the entire amount in a single installment.

    8. Statement that the taxpayer agrees to all of the items of the revenue procedure.

  4. Each memorandum must be signed. At the top of the first page of the memorandum the following language must be typed or legibly printed: "PAYMENT OF ADDITIONAL AMOUNT UNDER Rev. Proc. 97-44 ."

  5. If a memorandum is not received with the payment, contact the taxpayer. Do not apply payment to taxpayers' SSN or to any outstanding balances if unable to contact the taxpayer.

  6. Below are the deposit procedures for processing LIFO payments.

    1. Receive remittance and memorandum described above.

    2. Prepare Form 2221, Schedule of Collections, in triplicate.

    3. Prepare Deposit Ticket with Campuses ALC and address. Deposit to Account Symbol 20-3220.

    4. Route memorandum, copy of Deposit Ticket, and Form 2221 to Accounting Operations.

    5. Process as out of area NMF if remittance is received in a SC other than CSPC and deposited by the receiving SC. See IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents. Accounting Operations will transfer to CSPC thru Form 2158, Credit Transfer Voucher.

Department of Justice/Criminal Restitution Program Payments (KCSPC Only)

  1. Department OF Justice (DOJ) Criminal Restitution Payments will be processed at Kansas City only beginning October 1, 2009.

  2. Accounting personnel will prepare Form 3244 for processing.

  3. These remittances are processed through Manual Deposit.

  4. Process using Account Symbol 20-3220, Miscellaneous Receipts. After processing send Form 3244 to Accounting with the deposit package.

  5. Process as Manual Deposit as follows:

    1. Prepare Form 2221. Annotate on top of Form 2221 "DOJ/Restitution" .

    2. Prepare deposit ticket with Account Symbol 20-3220.

    3. Route memorandum copy of deposit ticket, Form 3244, and Form 2221 to Accounting.

  6. Criminal restitution payments received at sites other than Kansas City SPC must be transshipped thru overnight traceable method to the following address:

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

  7. Contact the Kansas City Accounting RACS function at ≡ ≡ ≡ ≡ ≡ ≡ if there are questions regarding the receipt and reconciliation of criminal restitution payments.

DOJ Lockbox Payments (KCSPC Only)

  1. DOJ Lockbox Payments will be processed at the Kansas City SPC.

  2. Accounting personnel will prepare Form 3244 for processing.

  3. These remittances are processed through Manual Deposit.

  4. Process using Account Symbol 20-3220, Miscellaneous Receipts. After processing send Form 3244 to Accounting with the deposit package.

  5. Process as Manual Deposit as follows:

    1. Prepare Form 2221. Annotate on top of Form 2221 "DOJ/Restitution" .

    2. Prepare deposit ticket with Account Symbol 20-3220.

    3. Route memorandum copy of deposit ticket, Form 3244, and Form 2221 to Accounting.

Multiple and/or Split Remittances

  1. A multiple remittance (also referred to as "Multi" ) is two or more remittances received with a single return/document. When multiples need to be processed, follow procedures below.

  2. If the amount is entered in ISRP, do not green rocker.

  3. When processing accompanying return/voucher/notice as the posting document, the following applies:

    1. Run a calculator tape to ensure the total equals the document(s).

      Note:

      Adding machine tape is optional for payments processed via Info Connect thru the Payment Perfection Team, as ISRP will not accept the payments unless they balance. When processing payments manually, run an adding machine tape to ensure the deposit is balanced prior to release.

    2. Edit "M" and the number of remittances in the upper left hand corner of all remittances and the document.

  4. If a Form 3244 or equivalent needs to be prepared, edit the original document and route to the appropriate function as non-remit. Follow the above instructions to process the remittances.

  5. A split remittance is one remittance received with more than one return/document (can be more than one taxpayer) and/or more than one tax period.

    1. Verify remittance amount to tax periods, returns/documents balance due lines.

    2. If remittance and return/documents balance due lines agree, green rocker balance due lines.

    3. If money amounts disagree, starting with oldest tax period, apply remittance amount to returns/documents from oldest to most current.

      Note:

      Only one tax period and/or MFT can be allowed per posting document.

    4. If last return/document is underpaid, edit the remittance amount in green to the left of the balance due line.

    5. If last return/document is overpaid, apply excess remittance to the oldest collection statute expiration date (CSED) and edit remittance amount in green to the left of the balance due line.

    6. Edit "S" and the number of returns/documents in the upper left hand corner of all remittances and all returns/documents if less than 50. If split consists of more than 50, edit the remittance only. Process thru ISRP or Manual Deposit.

    7. Prepare adding machine tape for each split return/document edited amount and total. Route to ISRP labeled as "splits."

      Note:

      Adding machine tape is optional for payments processed via Info Connect thru the Payment Perfection Team, as ISRP will not accept the payments unless they balance. When processing payments manually, run an adding machine tape to ensure the deposit is balanced prior to release.

  6. Multiples and Split remittance(s) and returns/documents received combined are processed thru ISRP or Manual Deposit as follows:

    1. Verify remittances with return(s) /document(s) balance due lines.

    2. If amounts agree, green rocker balance due lines.

    3. If amounts don't agree, edit remittance amount in green to the left of the balance due lines.

    4. Remittance that over paid the balance due must be applied to the document with the oldest CSED.

    5. Remittance that under paid the balance due subtract the difference from the most current year taxes owed, edit the amount to the left of the balance due line. Process remaining returns/documents as non-remittances.

    6. Edit "S" and number of returns/documents in upper left corner of remittances and returns/documents.

    7. Edit "M" and number of checks in the upper left corner of remittance and returns/documents. Edit "S" and number of returns/documents in upper left corner of remittances and returns/documents.

    8. Prepare adding machine tape for each Split/Multi return/document edited amount and total. On the same tape list check amounts and total. Both totals must equal.

      Note:

      Adding machine tape is optional for payments processed via Info Connect thru the Payment Perfection Team, as ISRP will not accept the payments unless they balance. When processing payments manually, run an adding machine tape to ensure the deposit is balanced prior to release.

    9. Attach adding machine tape to first return/document. Process through ISRP or Manual Deposit.

    Example:

    5 documents received with one check = S5: 3 checks received with one return = M3; 5 documents received and 3 checks = S5 M3 .

Single Remittances of 50 Million Dollars or More

  1. These instructions are to provide processing procedures for depositing single check remittances in excess of 50 million dollars. It is imperative that we strive to receive same day credit when these remittances are received.

    • These large dollar remittances must be deposited on the day of receipt, when received before your depositary's same day credit cutoff time.

    • When remittances are received after your depositary cutoff time, they must be deposited as soon as the depositary opens on the next business day.

    • IRM 3.8.45.6.29(6) provides the depositary for each submission processing site and the contact telephone numbers. Process through the ISRP System if possible. Checks $50 million or more should be tagged in the deposit package to allow for easy identification by the depository bank.

  2. Upon receipt of this remittance, the designated Deposit Unit employee must telephone the appropriate depositary contact listed in IRM 3.8.45.6.29(6) to advise them:

    • The remittance has been received.

    • The amount of the remittance.

    • The approximate time the depositary will receive the remittance.

    • Ask if any different depositing procedures should be followed.

      Note:

      Your depositary may request that you fax a copy of the check as soon as you receive it.

  3. Before depositing the remittance the Deposit Unit will:

    • Endorse the remittance with the submission processing site endorsement stamp.

    • Encode remittance only if encoder is equipped to do so.

    • Prepare a separate OTCnet 215A Deposit Ticket.

  4. After the bank has been contacted, the designated Deposit Unit employee must telephone ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (use the option for your area) to advise them:

    • The remittance has been received.

    • The amount of the remittance.

    • The approximate time the depositary will receive the remittance.

    Note:

    FRB St. Louis Customer Service hours are 8:00 a.m. - 6:00 p.m. EST. If you deposit a check after the above hours you must call them the next day to report the check information.

  5. Also upon receipt of this remittance, the Receipt and Control Operations Chief or designated Deposit Unit employee must send an email with the Submission Processing campus location (ie. Austin Campus), amount and date of the deposit to the following HQ analysts and Treasury contacts:

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  6. Large Dollar Depositary Contacts

    Note:

    If your bank below cannot clear the check, contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (use the option for your area) for assistance.

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    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Form 8038T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate

  1. Form 8038T are processed at Ogden Submission Processing Campus (OSPC).

  2. Process payment for Form 8038T using the below instructions:

    1. Prepare Form 3244 in duplicate, one copy will be attached to the back of Form 8038T. Form 8038T can be used in lieu of Form 3244.

    2. Process payment as BMF, Tax Class 3.

    3. Verify that Form 8038T does not have a report number on line 4. If a report number has been entered by the taxpayer circle it out before doing research. The report number field on the form is for IRS use only and must be edited on Form 8038T by an IRS employee.

    4. Research CC BMFOLI using tax period in Box 6 (Date of Issue). If no prior return is posted with the same tax period in the valid range, edit a report number of 700. If CC BMFOLI indicates a return has been filed for the same period with a report number of 700, edit report number 701, etc. Valid range is 700-799.

      Note:

      All "amended" Form 8038T and/or Form 3244 with no return and no valid report number, edit report number 799.

    5. Transship Form 8038T to OSPC for processing if received at another campus.

Form 8329, Form 8330 and Form 8703 Received in Other than OSPC

  1. Form 8329 , Lender's Information Return for Mortgage Credit Certificates (MCCs), Form 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates (MCCs), and Form 8703, Annual Certification of a Residential Rental Project, are processed at the Ogden Submission Processing Campus (OSPC). If a remittance is received in a campus other than OSPC use the following process:

    1. Prepare Form 3210, Document Transmittal.

    2. Transship Form and remittance to the OSPC by over night traceable mail on the day of receipt to the following address:
      Internal Revenue Service
      Ogden Submission Processing Campus
      Receipt and Control
      1973 North Rulon White Blvd.
      Ogden, UT 84201

Form 8329, Form 8330 and Form 8703 Received in OSPC
  1. Payment will be processed through Manual Deposit using Account Symbol 20-1099, Miscellaneous Forfeiture Receipt.

  2. Process the remittance as follows:

    1. Prepare Form 2221 in duplicate.

    2. Prepare OTCnet 215A Deposit Ticket using Account Symbol 20-1099.

    3. Route Form 8329, Form 8330 or Form 8703 as Non-Remit to the Batching Function after deposit processing.

      Note:

      Do not write remittance amount on document.

Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests and Form 8288A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (Processed at OSPC only)

  1. Form 8288 will be processed to the Business Master File. The first valid BMF tax period for Form 8288 is 200512. Any tax period prior to 200512 must follow the Out of Area NMF procedures. Exception: If tax period is before 200512 but Form 8288 indicates Installment Plan, process as BMF.

    Note:

    Form 8288 is also the transmittal for Form 8288-A. Form 8288-A (Copy A and B) is to remain attached to Form 8288.

    Form 8288, Prior to 200512
    Date of Transfer (DOT) prior to 12/13/05
    Form 8288, 200512 and Subsequent
    Date of Transfer (DOT) 12/13/05 or later
    MFT: 17 MFT: 17
    Tax Class: 6 Tax Class: 1
    Doc Code: 41 Doc Code: 40
    Blocking Series: 920-929 Blocking Series: 000-999
    98641ddd920-929 98140ddd000-999
  2. Process all Form 8288 payments through ISRP when an EIN or through manual deposit when an SSN. See IRM 3.8.45.2.3(6) requirements for preparing Form 3244 and assigning a Trace ID Number for manual deposit processing.

    1. If the taxpayer does not have a TIN, forward the return to the Entity function before batching.

    2. The SSN/ITIN/IRSN must be established on the BMF by Entity with a TC 000. When forwarding to the Entity function, ensure the following information is provided:
      -Taxpayer Name
      -Name Control
      -Current home address
      -Filing Status Code (Notate Filing Status Code 1 if Filing Status is unknown)

    3. If the check amount agrees, green rocker the amount shown in Box 7 Part I, or Box 6, Part II of Form 8288.

    With Remit Form 8288, Prior to 200512 With Remit Form 8288, 200512 and Subsequent
    MFT: 17 MFT: 17
    Tax Class: 6 Tax Class: 1
    Doc Code: 41 Doc Code: 17, 19 (overflow 70, 76)
    Blocking Series: 920-929 Blocking Series: 000-999
    TC: 610 TC: 610, 670
    98641ddd920-929 98117ddd000-999
    98119ddd000-999
    (overflow: 98170ddd000-999, 98176ddd000-999)
  3. There are no filing requirements for Form 8288. In addition, the tax period for Form 8288 is based on the "Date of Transfer" of when the U.S. real property interest (USRPI) was sold. Apply the payment to the month and year of the Date of Transfer on Line 3 unless a withholding certificate letter is attached. If attached, use the letter date of the withholding certificate (approved or rejected) as the new Date of Transfer.

    Example:

    Taxpayer "A" can file a Form 8288 every other month for the purchased USRPI from a foreign person or entity (200701, 200703, 200705, 200707, 200709, 200711, etc.)

    Note:

    If the Date of Transfer (DOT) is missing, and you are unable to determine the correct tax period in which to post the payment, then use the default DOT. The default DOT is the month prior to the IRS received date (IRS date is 3-10-2011, use 201102) (IRM 3.22.261.20.2(5), Field 02B - Date of Transfer (DOT), Line 3).

  4. Payments for foreign withholding under Section 1445 Foreign Investment Real Property Tax Act remitted without Form 8288 should be processed to tax accounts in the same manner as if the form was submitted.

  5. Attach all correspondence to the posting document. Prepare Form 3244 when received without a Form 8288.

Form 8804 (Foreign Partnership W/H) - Business Master File (BMF)

  1. Form 8804 will be processed to the Business Master File. Any delinquent return, tax period 200511 and prior must follow the Out of Area NMF procedures.

    1. Green rocker the remittance amount on the balance due line. If the balance due line is different than the remittance amount, edit that figure in green in the upper right corner of the Form.

    2. Date stamp with the received date.

    3. Process payment through ISRP.

    4. Do not include return in the Accounting Package.

    Note:

    If Form 8805 is attached to Form 8804 and Form 8805 shows the partnership entity information on Lines 1 and 2, leave the Form 8805 attached to Form 8804. However, if Form 8805 is attached to Form 8804 and Form 8805 shows the partnership entity information on Lines 5a and 6, detach Form 8805 from Form 8804 and forward to Batching and Numbering for assignment of its own Document Locator Number (DLN). See IRM 3.21.15.1.1.4(2), Form 8805 Background - Foreign Partner’s Information Statement of Section 1446 Withholding Tax.

    Form 8804, 200411 and Prior Form 8804 200412 and Subsequent
    MFT: 08 MFT: 08
    Tax Class: 6 Tax Class: 1
    Doc Code: 29 Doc Code: 29
    Non Remit Blocking Series: 200-599 Non Remit Blocking Series: 000-999
    With Remit Blocking Series: 920-929 With Remit Blocking Series: 000-999
    TC: 610 TC: 610 or TC 670
    98629ddd200-599 98129ddd000-999

Form 8813 (Foreign Partnership Withholding Payment Voucher)

  1. Form 8813 is a quarterly installment payment voucher used by partnerships with foreign partners to pay their quarterly Section 1446 tax.

  2. Process Form 8813 to the Business Master file through ISRP.

    Form 8813
    MFT: 08
    Tax Class: 1
    Doc Code: 17, 19
    Blocking Series: 000-999
    TC: 670
    98117ddd000-999
  3. "Section 1446 Withholding Certificate" and related computation sheets can be attached to support a reduced tax for the partnership and are required to be filed with the quarterly payment voucher Form 8813.

    1. If Form 8813 has Form 8804-C or correspondence attached, transship the Form 8813 voucher and the attachments to Philadelphia Exam after the payment has been processed.

      IRS Examination Branch
      4-E08.142
      2970 Market St.
      Philadelphia PA 19104

    2. If Form 8813 does not have attachments, process using standard procedures and do not transship.

Sub-Pays for Child Support MFT 59

  1. Form 5734 for NMF Child Support payments MFT 59 process as a NMF Manual Deposit and number Form 5734 as follows:

    1. MFT 59

    2. Tax Class 6 (4)

    3. Document Code 27

    4. Blocking Series 400-499

Processing Items From NCS, EFAST Processing Center (OSPC Only)

  1. Follow these procedures when receiving mail from National Computing System (NCS), EFAST Processing Center. Identify mail received from NCS by the NCS Government Transmittal Sheet or NCS Remittance Chain of Custody Form.

    If Then
    The transmittal contains remittances, process remittances following additional instructions in IRM 3.8.45.6.36(2) below.
    The transmittal contains no remittances, route Transmittal Sheet and all documents to Receipt and Control Quality Review, Mail Stop 6055.
  2. The Deposit Activity Function should:

    1. Stamp each item with received date listed on the NCS Government Transmittal Sheet as the IRS receive date.

    2. Stamp, sign and return on copy of the transmittal to:

      NCS
      EFAST Processing Center
      PO Box 7046
      Lawrence, KS 66044-7046

    3. List each remittance on Form 4287. Attach a copy of the NCS Government Transmittal Sheet and Remittance Chain of Custody form to the Form 4287.

    4. Prepare a daily log to track receipts from NCS. The log should include, but not limited to:

      • NCS received date

      • Date received by IRS

      • Item(s) received

      • Volume of each item

      • Each remittance and amount

      • Total volume for the date

    5. File completed EFAST log sheet and the original NCS Government Transmittal sheets with Form 4287. Send copies of the Form 4287 monthly to the TE/GE EP Program Analyst at Mail Stop 1110. The copies should be sent no later than the 10th calendar day after the end of the month.

    6. Contact the Submission Processing Planning and Analysis Staff regarding problems.

Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests (CSPC Only)

  1. The Tax Relief and Health Care Act of 2006 (P.L. 109-432), Section 403, enacted a new Form 8924 for the computation and reporting of the Excise tax due on the Transfer of Certain Qualifying Geothermal or Mineral Interests by an eligible entity. The return is due by the 90th day following the taxable transfer.

  2. Form 8924 remittances are processed as follows:

    Tax Class: 6 (4)
    Doc Code: 40
    Blocking: 400-499
    MFT: 41
    TC: 610
    Abstract #: 012

Form 7004, Extensions Filed for Form 8924 Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests (CSPC Only)
  1. The taxpayer may file Form 7004, Extension of Time to File for Form 8924. Process remittances for Form 7004 as follows:

    Tax Class: 6 (4)
    Doc Code: 40
    Blocking: 400-499
    MFT: 41
    TC: 670
    Abstract #: 012

Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code (CSPC Only)

  1. The Tax Relief and Health Care Act of 2006 (P.L. 109-432), Section 403, enacted a new Form 8928 for the computation and reporting of the Excise taxes due on Section 4980B, Section 4980D, Section 4980E and Section 4980G for failures by group health plans or employers. The due date of the return is dependent on the Section as follows:

    • §4980B or §4980D on or before the due date for filing the person’s federal income tax return (single employer or other responsible person) or on or before the last day of the seventh month following the end of the plan year (multiemployer or multiple employer plan).

    • §4980E or §4980G on or before the 15th day of the fourth month following the calendar year in which the noncomparable contributions were made.

  2. Form 8928 remittances are processed as follows:

    Tax Class: 6 (4)
    Doc Code: 39
    Blocking: 400-499
    MFT:41
    TC: 610
    Abstract #: 126 Section 4980B
    Abstract #: 127 Section 4980D
    Abstract #: 128 Section 4980E
    Abstract #: 137 Section 4980G

Form 7004, Extensions Filed for Form 8928 Excise Taxes Under Chapter 43 of the Internal Revenue Code (CSPC Only)
  1. The taxpayer may file Form 7004 , Extension of Time to File for Document 8928. Process remittances for Form 7004 as follows:

    Tax Class: 6 (4)
    Doc Code: 40
    Blocking: 400-499
    MFT: 41
    TC: 670
    Abstract #: 126 Section 4980B
    Abstract #: 127 Section 4980D
    Abstract #: 128 Section 4980E
    Abstract #: 137 Section 4980G

Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

  1. Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, should be filed by the taxpayer electronically through Pay.gov. Whenever a check is received with a Form 1023-EZ it should be returned to the taxpayer along with the 1023-EZ. Use Letter 5333 to return the check and form to the taxpayer. The following information must be entered in fillable fields:

    1. Taxpayer Address

    2. Letter creation date

    3. Employee Identification Number (EIN)

    4. Taxpayer Name in the Salutation Line

    5. In the body of the letter use the line "We stamped your user fee payment "Non-Negotiable" for your protection."

    6. Standard Signature and Title for letters sent to taxpayers by Receipt and Control when returning checks.

Form 8404, Interest Charge on DISC-Related Deferred Tax Liability (Cincinnati Only)

  1. Processing Instructions for Form 8404 received with remittances.

    1. Route Form 8404 received with remittances to the Payment Perfection Unit (PPU) in RCO.

    2. PPU will edit the original return with the MFT, Tax Year, Transaction Code and green rocker the money amount on line 9.

    3. Make a copy of the edited Form 8404, attach envelop to the copy, then route copy of Form 8404 and payment to Manual Deposit for processing. Send original Form 8404 to Batching.

    4. Manual Deposit will retrieve Trace ID Number from BBTS and follow the steps below to retrieve an off-line DLN from BBTS:

      Tax Class 6(3)
      Doc Code 27
      Blocking Series with remittance: 300-349
      MFT 23

      Note:

      When multiple Form 8404s are received with one remittance, ensure correct money amount is applied to the EIN number located in box “b” on Form 8404.

Amended Returns and Remittances Received with IRS or Taxpayer Correspondence

  1. This subsection includes instructions for processing Amended Returns and Remittances received with Correspondence.

  2. BMF forms amended, additional, duplicate, superseding, supplemental, corrected, or revised will be used as a source document for ISRP processing.

    Note:

    A DPC is not necessary when a remittance is received for a previously filed amended return with or without a copy of the original.

Copies of Returns

  1. Copies of original returns, forms, CP Notices, etc. will be processed as originals.

Form 941X, Adjusted Employer's Quarterly Federal Tax Return for Claim or Refund

  1. Form 941X, Adjusted Employer's Quarterly Federal Tax Return for Claim or Refund: if received with same, current or prior quarter/year Form 941, attach Form 941X behind form and process through ISRP.

    1. TC 610

    2. MFT 01, 04 or 11

    3. Tax Period for 01 and 04, quarterly

    4. Tax Period for MFT 11, annual

  2. If Form 941 and Form 941X are for different quarters, process them individually through ISRP.

    1. TC 670/TC 570

    2. DPC 24

    3. MFT 01, 04 or 11

    4. Tax Period for MFT 01 and 04, quarterly

    5. Tax Period for MFT 11, annual

    Note:

    If received with Form 941SS (for SPC other than Ogden), process remittance and transship to OSPC.

Form 1120X

  1. Use Form 1120X as the source document for processing through ISRP.

    1. TC 670 with TC 570 and Designated Payment Code (DPC) 24.

    2. Edit Tax Period on form.

Amended Form 1040

  1. When the taxpayer annotates Form 1040 with the literal , "Amended" , "Duplicate" , "Copy" , "Substitute" , "Tentative" , "Superseding" , "Corrected" , or"Revised" it should be considered amended and used as a source document for ISRP processing.

    1. TC 670 with TC 570 and DPC 24.

    2. Edit Tax Period on form.

Form 1040X

  1. Use Form 1040X as a source document for processing through ISRP.

    1. TC 670 with TC 570 and DPC 24.

    2. Edit Tax Period on form.

  2. If indication of a "Carryback", "NOL", or "Disaster", expedite to ICT; otherwise, route to Batching.

IRC 6603 Deposits

  1. Correspondence stating "Stop Interest" , "pursuant to IRC 6603" or "Rev. Proc. 2005-18" , should be processed as an IRC 6603 deposit.

  2. IRC 6603 payments are processed using TC 640 and DPC 12.

  3. Remittance received with completed Form 3244-A from Examination Branch which is designated as an IRC 6603 deposit must indicate appropriate application for each Tax Period.

  4. Process through Manual Deposit with 999 DLN blocking. See IRM 3.8.45.25(4) if a BBTS DLN Reference File needs to be created for the 999 DLN Blocking.

  5. Detach and route correspondence requiring action to Submission Processing ICT.

Civil Penalty Cases

  1. Most civil penalties, including Trust Fund Recovery Penalties, were originally processed NMF. Most civil penalties have been transferred to Civil Penalty Modules (CVPN); for IMF use MFT 55, for BMF use MFT 13.

  2. Remittances received with CP 251, CP 253, Letter 98C, Letter 99C, Notice 972CG , CP 2100 or CP 2102 are processed to IMF/BMF civil penalty modules using MFT 55/MFT 13/MFT 01 with TC 640. Process through ISRP.

    Note:

    Look for indication on the check or otherwise stated by the taxpayer when making payments for backup withholding. (Taxpayer will indicate by using the word Federal Income Tax (FIT) or comment on his/her Form 1099 for backup withholding). Before 1994, backup withholding was reported on Form 941. For 1994 and after, apply using MFT 16 and Doc Code 17. For 1993 and prior, apply to the taxpayer's Form 941.

    Reminder:

    When a CP 253 or Letter 98C is received with a payment, you MUST post the money amount to MFT 13, even though the tear off stub indicates it is a MFT 88.

  3. Remittances received with Form 8125, Form 8126, Form 8488 and Form 8489 are processed to IMF/BMF Civil Penalty modules using MFT 55/MFT 13, with TC 670 and process thru ISRP. Do not enter TC 570 for Form 8125 , Form 8126, Form 8488 or Form 8489.

  4. Remittance received with Form 8027 should be processed using TC 640. Prepare Form 3244 with MFT 13 to the Employer's EIN.

  5. Research is required for new and subsequent payments received without Form 8027, Form 8125, Form 8126, Form 8488, Form 8489, CP 251, CP 253, Letter 98C, Letter 99C, Notice 972CG, CP 2100 or CP 2102; check the Taxpayer Information File (TIF) for IMF/BMF civil penalty modules even if taxpayer furnishes TIN followed by the letter "N" ("N" may or may not be present as a file source on IDRS). When researching IMF, BMF or NMF use CC SUMRY or CC TXMOD.

    Reminder:

    When a CP 253 or Letter 98C is received with a payment, you MUST post the money amount to MFT 13, even though the tear off stub indicates it is a MFT 88.

  6. If penalty is for tax period 1994 and subsequent, process with MFT 55, MFT 13 or MFT 01 through ISRP.

    1. Enter TC 640 for CP 251, CP 253, Letter 98C, Letter 99C, Notice 972CG, CP 2100 and CP 2102.

    2. Enter TC 670 for Form 8207, Form 8125, Form 8126, Form 8488 and Form 8489.

  7. If penalty is for tax period 1993 and prior, process with MFT 17 through ISRP.

  8. Notice 972CG is a civil penalty proposal notice. Payments may be received in response to this notice, but there will be no assessment on the Master File. Process remittances as follows:

    1. Use MFT 55 for IMF, or MFT 13 for BMF;

    2. Use TC 640;

    3. Process thru ISRP;

    4. If a payment is received without Notice 972CG, but there is an indication that the payment is in response to the Notice 972CG, prepare Form 3244 (or equivalent) and post the payment as stated above.

  9. After processing, route Form 8125, Form 8126, Form 8488, Form 8489, Letter 972CG, CP 2100 and CP 2102 to Philadelphia IRP Civil Penalty Function BLN 4-G08.151 and CP 251, CP 253, Letter 98C and Letter 99C to Memphis CAWR function at Stop 814. Also route Form 3244 and any related taxpayer correspondence to the Philadelphia - IRP Civil Penalty Function BLN 4-G08.151 .

Taxpayer Correspondence

  1. When it is necessary for the Deposit Function to correspond with a taxpayer, the Taxpayer's Bill Of Rights (TBOR) should always be considered (see https://www.irs.gov/taxpayer-bill-of-rights). Ensure correspondence is timely, accurate, professional in tone and responsive to taxpayer needs. As pertaining to this particular IRM for depositing, posting taxpayer payments and corresponding with taxpayers, Categories 2, 3 and 8 of the TBOR should always be adhered to. Those three categories state the following:

    • 2) The right to quality service. Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

    • 3) The right to pay no more that the correct amount of tax. Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

    • 8) The right to confidentiality. Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

  2. Taxpayer Generated Correspondence. Taxpayer Correspondence is defined as all written communication from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes taxpayer requests for information as well as that which may accompany a tax return; responses to IRS requests for information; and annotated notice responses. Examples of other taxpayer generated correspondence are:

    1. Change of name or address.

    2. Information for payment application.

    3. Taxpayer request for balance due.

  3. Correspondence may be used as a source document. Ensure correspondence is stamped with Campus received date. Edit the following information in green if it is not present:

    1. Name control

    2. SSN/ITIN/EIN

    3. MFT

    4. Tax Period

    5. Transaction Code, if other than TC 670

    6. Money amount

    7. Process thru ISRP.

    8. Route to appropriate area after check has been run through Transport and electronic voucher has been created.

  4. On occasion, taxpayers or businesses send duplicate copies of correspondence requesting acknowledgment of receipt. Date stamp duplicate copy of correspondence with Campus' received date and return to the taxpayer in envelope provided or prepare envelope. Destroy duplicate copy if not requesting any action to be taken.

  5. Significant/Insignificant Correspondence.

    Note:

    Because campus configurations are dissimilar, the location of correspondence analysis within the processing stream shall be determined by Receipt and Control.

  6. If correspondence indicates similar phrasing or intent as follows, route to the appropriate Campus Collection Function (CSCO) based on the BOD code after processing. Refer to routing information in IRM 3.10.72.15.5, Special Handling of Collection Forms – Form 9465, Form 433 Series, and Form 2159, Payroll Deduction Agreement.

    • "Apply this partial payment to my balance"

    • "This is all I can pay"

    • "Unable to come up with full amount"

    • "Can I pay this off in installments?"

    • "Set me up a payment plan"

    • "Due to financial difficulties "

    • "Will send $X dollars every month until paid off in full "

    • "Arrange a budget program"

    • "As soon as I return to work, I will pay balance"

    • "Hope to have balance paid off in a few months"

    • "I can't pay $X dollars"

  7. If correspondence indicates similar phrasing or intent as follows, route to Submission Processing (ICT/CIS) after processing:

    • "Why was I assessed interest?"

    • "I am disputing this bill"

    • "The tax system is too difficult to comprehend"

    • "Forms are too complicated"

    • "I am appealing penalty and interest"

    • "Do not understand billing or additional assessment"

    • "Send me a statement of payment application"

    • "Please let me know what I still owe"

    • "I believe this has been paid!"

    • "Did you receive our previous payment?"

    • "Send estimated vouchers/envelopes"

    • "Please clarify"

    • Any statements of dissatisfaction, "questioning," "?" or notations which show taxpayer does not understand

    • Wants balance of accounts

    • Asking for balance of account or abatement of penalty

    • Giving reasons/excuses for late payments

  8. If correspondence indicates similar phrasing or intent as follows, route to Campus Taxpayer Advocate Service (TAS) after processing:

    • "I am experiencing a hardship"

    • "I am enclosing payment but I have tried many times to have this resolved"

    • "I haven't received a response to my inquiry sent (over 30 days ago)"

IRS Generated Correspondence

  1. Examples of IRS generated correspondence are:

    1. Answers to IRS inquiries.

    2. Request for abatement of interest or penalties.

    3. DATC/ASTA Letters Deferred Adverse Tax Consequence (DATC) and Alternative Strategies for Tax Administration (ASTA).

    4. Computer generated Campuses (SC) letters can be used as source documents, if:
      Letter does not request taxpayer information or require further action.
      Information needed to process a source document is printed on the SC letter.

    5. SC letters that need further action will be routed after creating electronic voucher.

DATC/ASTA Letters

  1. The DATC/ASTA letters as source documents. Batch separately by year and form, and edit for processing thru ISRP as follows:

    1. TC 670 and TC 570

    2. MFT 30

    3. Tax Period

    4. Date Stamp

    5. After processing, route to DATC/ASTA function.

    6. If multiple remittances are received follow procedures in IRM 3.8.45.6.28.

CP 45, Reduced Amount Applied to Estimated Tax

  1. Prior Year / After August 31 of current year.

    1. Edit TC 430 to TC 670.

    2. Process as subsequent payment thru ISRP.

  2. Current Year

    1. Process thru ISRP.

    2. If taxpayer sends a prior year CP 45 and indicates it for current year, do not date stamp.

  3. Form 8489 with TC 430 in the scan line, may be referred to as CP 45.

CP 59, 1st Notice--Return Delinquency, or CP 518, 4th Notice--Return Delinquency

  1. When CP 59 or CP 518 is received with a return and remittance, process the payment through ISRP using TC 610.

  2. Attach the CP Notice to the front of the return and forward to Compliance Services Collection Operations (CSCO), shown on the notice Return Address.

  3. When CP 59 or CP 518 is received with remittance and no return is posted, input a TC 670 for the money amount and a TC 570 to hold the credit and prevent the money from refunding until the return posts.

Remittance Received with CP 213

  1. If remittance is received with CP 213(I) or CP 213(N) , process as follows. For 1984 and prior years, process as NMF. For 1985 and subsequent years, process as BMF.

    1. Photocopy CP 213 and expedite the copy to OAMC, mail stop 3552 or fax the copy to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ requesting an assessment to be done.

    2. If the payment is received in a campus other than CSPC, process the original CP 213 with remittance as an Out of Area NMF for 1984 and prior. Refer to IRM 3.8.45.5.2, Out of Area NMF-Transshipment of NMF Returns/Documents.

  2. Number CP 213 as follows:

    1. TC 670

    2. MFT 74

    3. Tax Class 6 for NMF and Tax Class 4 for BMF

    4. Doc Code 27 for NMF and Doc Code 17 for BMF

    5. Blocking 000-999

Audit Cases and CP 2000

  1. If last page of CP 2000 is missing and correspondence or Form 1040X is attached, cover upper right hand corner with a self-adhesive label. Edit in green the following items if not present:

    1. Name Control

    2. SSN/ITIN

    3. TC 640

    4. MFT 30

    5. Tax Period

    6. Date Stamp

    7. If multiple tax periods are indicated, edit the oldest CSED.

    8. Money amount

    9. Attach correspondence and/or forms pertaining to that year to the back of notice. Process through ISRP.

  2. Audit notices can be identified by the following:

    1. Correspondence or notices that use the words "Audit" or "Tax Examination" .

    2. Form 5564, with EXMOD in the upper right hand corner.

    3. Letter 3219 (SC/CG), Catalog Number 27500P mailed with or without Form 5564.

  3. Process Audit Case notices through ISRP and then route to Examination Branch. Edit the following in green if not present:

    1. SSN/EIN

    2. Name Control

    3. TC 640

    4. MFT

    5. Tax Period

    6. Date stamp

    7. Remittance amount

    8. Research IDRS if required information is not available.

      Note:

      If the taxpayer sent in an old notice and the assessment has already posted, post the payment with TC 670.

  4. Multiple checks, refer to Multiples/Splits.

  5. If Form 1040X is attached, verify the tax year on Form 1040X and CP 2000 and process using the following chart:

    If....... Then...... Process as........
    CP 2000 and Form 1040X are for the same tax period Attach Form 1040X behind CP 2000 (make sure Form 1040X has a received date stamp) CP 2000
    CP 2000 and Form 1040X are for different tax periods do not attach together. Apply the remittance as taxpayer intended.
    a) Taxpayer intended to pay CP 2000
    b) Taxpayer intended to pay Form 1040X

    a) Process remittance as CP 2000 and process Form 1040X as non remit
    b) Process remittance as Form 1040X and route to the Underreporter function at the campus indicated in the return address portion of the notice.
  6. CP-2000 for the last tax period or prior, use CP 2000 as a source document and process thru ISRP as an audit. Payments received with CP 2000 are generally processed with TC 640, Advanced Payment of Deficiency, per Document 6209 . Process with TC 670 if the Assessment has posted and the taxpayer sent in an old notice.

  7. If a CP 2000 is received with multiple remittances:

    1. Edit the total payment amount in green on the audit notice.

    2. Forward notice to the Examination Branch.

  8. If indication of "Cash Bond" , "Stop Interest" or "Rev. Proc. 84-58, Cash Bonds" , see IRM 3.8.45.7.6.

Employee Underreporter CP 2000

  1. Employee Underreporter (EUR) CP 2000 cases require exceptional processing.

    1. EUR CP 2000 cases involve IRS employees and/or their families, whom Deposit Activity and ISRP personnel may know or know of. "SPECIAL HANDLING IS MANDATORY." It is imperative that employees involved in handling these cases regard the privacy of an IRS employee as paramount when performing their duties. EUR CP 2000 cases should be safe guarded, handled by as few employees as possible, discussed only with individuals specifically involved in processing and immediately accessible at any point during processing.

    2. EUR CP 2000 and accompanying remittance(s) should bypass the Deposit Activity Functions within the Receipt and Control Operations Managers; and notifying the Underreporter Unit from the Receipt and Control Mail Operations.

    3. EUR CP 2000 should be received from the Underreporter Section on a completed Form 4287, Record of Discovered Remittance, and should be accepted by Payment Perfection Unit manager or designate.

    4. Except for nurturing through processing, EUR CP 2000 will be processed similar to (non-IRS employee) CP 2000,

    5. Forward EUR CP 2000 back to the Underreporter Unit after processing.

CAWR Payments

  1. Combined Annual Wage Reporting (CAWR), Returned Social Security Administration (RSSA) and Regular CAWR Correspondence.

    1. Any CP 253 or Letter 98C received must have the remittance amounts received posted to MFT 13 even though the CP 253, Letter 98C and tear off stub show MFT 88.

      Note:

      MFT 88 on the tear off stub indicates that it is a CAWR module. The MFT is generated at the master file when the CP 253 or Letter 98C is issued and no penalty assessment is made, only proposed. If the taxpayer responds by paying the potential penalty amount, that amount must be credited to MFT 13 where the penalty assessment will be made.

    2. If a CP 253, Letter 98C or Letter 2057C is received with a payment and the paragraphs ARE present indicating that it is a returned SSA case, post the remittance amount to MFT 13.

    3. If a CP 251, Letter 99C or Letter 2057C is received with a payment and the paragraphs ARE NOT present indicating that it is a returned SSA case, post the remittance amount to the appropriate MFT for the type of return filed. (See the top right hand corner of the notice or letter issued).

CP 2501

  1. CP 2501 should be batched separately from CP 2000. Edit, in green, the following if not present:

    1. Name Control

    2. SSN/TIN

    3. TC 640

    4. MFT 30

    5. Tax Period

    6. Date Stamp

    7. Process thru ISRP and forward to Underreporter Function.

Form 1040ES, Estimated Income Tax for Individuals

  1. Form 1040 estimated tax payments are paid quarterly with voucher Form 1040ES.

    1. Delinquency procedures are no longer in effect for Form 1040ES and Form 1041ES. These forms should be worked as current. No envelope and no date stamp are required.

    2. All quarters for the same calendar year may be batched together.

    3. Process thru ISRP with TC 430.

  2. Early Filed Form 1040ES processing.

    1. Process through ISRP.

    2. Detach all correspondence, write remittance amount, received date and route to appropriate function.

      Note:

      If Form 1040ES is received for a future calendar year, process thru Manual Deposit.

  3. Multiple Form 1040ES with one check.

    1. If for one taxpayer, process all forms together with the most current on top.

    2. If for different taxpayers, process as a split.

  4. If Form 1040ES, fourth quarter, is received with Form 1040 for the same tax period, staple Form 1040ES behind Form 1040 for processing.

Form 1041ES, Estimated Income Tax for Estates and Trusts

  1. Form 1041 estimated tax payments are paid quarterly with Form 1041ES.

    1. If EIN and name control cannot be determined, an EIN will need to be assigned by Entity.

    2. If EIN and name control can be determined process thru ISRP.

    3. Form 1041ES will be batched as calendar year, unless fiscal month is shown.

    4. When fiscal month is shown, the name must contain the word "Estate" ; otherwise, treat as a calendar year.

    5. If Form 1041ES is fiscal, edit the tax period as follows: 20XX forms will be 20XX01-20XX12.

    6. Process thru ISRP with TC 660.

  2. Delinquency procedures are no longer in effect for Form 1040ES and Form 1041ES. These forms should be worked as current. No envelope and no date stamp are required.

  3. All quarters for same calendar year may be batched together. Process thru ISRP.

Form 1041T

  1. Form 1041T received alone with remittance:

    1. Use Form 1041T as source document.

    2. MFT 05.

    3. TC 610, process through ISRP.

    4. After remittance processing is completed, route Form 1041T to Accounts Management.

Employment Tax Adjustment Program (ETAP)

  1. Form 4666, Form 4667,Form 4668,Form 4669 and Form 4670 are IRS computer generated Employment Tax Adjustment reports.

  2. When received with remittances, process as follows:

    1. Batch and process separately.

    2. TC 640.

    3. Use appropriate MFT and Tax Period on Examination Letter.

    4. Process thru ISRP.

    5. Route to Submission Processing (ICT/CIS).

Extensions

  1. Extensions are filed by taxpayers to request additional time to file a return.

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

  1. Public Law 96-107 allows taxpayers to receive an automatic six month extension of time to file Form 1040 with the approval of Form 4868.

  2. After Extraction Unit releases, Deposit will complete a secondary sort to ensure proper sort of Form 4868 (revision 2003 and prior) are designated for Form 1040 and for Form 709. This must be completed for perfect and imperfect Form 4868.

    Note:

    Form 4868 (2004 revision) pertain solely to Form 1040. Form 8892, Payment of Gift/GST Tax and/or Application for Extension of Time to File Form 709, was developed for the extension of time to file Form 709. Form 8892 is also used as a voucher for payments of Gift/GST tax.

  3. Approve Form 4868 if timely filed or timely mailed. Considered timely filed when received by the 15th day, or first working day afterwards when the 15th day of April falls on a weekend or holiday. Consider timely mailed when the postmark date is on or before the due date. See IRM 3.8.44, Campus Deposit Activity, for any applicable grace period.

    Note:

    All fiscal year Form 4868 must be date stamped. If not, do so by postmark date. See Exhibit 3.8.44-3, Timely Postmark Checklist for specific information.

  4. Disapprove Form 4868 if not timely filed. Stamp "DENIED" at or near the bottom of Form 4868.

  5. Batch approved and disapproved Form 4868s separately.

  6. Form 4868 (revision 2003 and prior) designated for both a Form 1040 and Form 709 (one or more boxes in Part II are checked or there is an amount in Part IV), make a photocopy (two if both the "Yourself and Spouse" boxes are checked in Part II) of Form 4868 and process as follows:

    1. Process the original to the IMF (MFT 30) account and process the copy(s) to the BMF (MFT 51) account.

    2. Edit an action trail on the original Form 4868 "copy processed as 709" .

    Note:

    If one remittance is received for both Form 1040 and Form 709 extensions, please refer to (13) below.

  7. Route imperfect Form 4868s (revision 2003 and prior), extensions for Form 1040, and all Form 4868s, extensions for Form 709, to Payment Perfection Unit.

    1. Form 4868 is imperfect if the SSN is missing or incomplete. If possible, use attachments to perfect. If unable to perfect, refer to IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, Reference Handbooks for presearch procedures. If presearch fails to locate SSN, contact the Entity Section for assistance. Once SSN is found, process thru InfoConnect or ISRP. If SSN is not found, route to Manual Deposit.

    2. Amended, second, subsequent, copy or duplicate Form 4868 should be edited as such. Date stamp and process thru InfoConnect or ISRP using procedures below. After deposit processing forward forms to the Batching Function.

  8. All Form 4868 extensions for Form 709 (one or more boxes in Part II are checked or there is an amount in Part IV) must be researched on IDRS to determine if a BMF account has been established. Form 709 accounts are accessed by the SSN followed by a "V" (000-00-1234V); MFT 51. If an account has not been established, route to the Entity Function to establish the account.

  9. Process timely filed Form 4868 extending Form 1040 through InfoConnect or ISRP as follows:

    1. With Primary TC 670 and Secondary TC 460.

    2. MFT 30.

    3. Hold and destroy Form 4868 after five (5) business days.

    Note:

    After April 22nd, if Form 4868 has Box 8 checked, follow procedures in (13) below. DO NOT destroy form. Please route deposit complete form to the Batching Function.

  10. Process delinquent Form 4868 extending Form 1040 through InfoConnect or ISRP as follows:

    1. With Primary TC 670 only.

    2. MFT 30.

    3. Route deposit complete form to the Batching Function.

    Note:

    After April 22nd, if Form 4868 has Box 8 checked, follow procedures in (13) below. DO NOT destroy form. Please route deposit complete form to the Batching Function.

  11. Process timely filed Form 4868 extending Form 709 through InfoConnect or ISRP as follows:

    1. With Primary TC 670 and Secondary TC 460.

    2. MFT 51.

    3. Hold and destroy Form 4868 after five (5) business days.

  12. Process delinquent Form 4868 extending Form 709 through InfoConnect or ISRP as follows:

    1. With Primary TC 670 only.

    2. MFT 51.

    3. Route deposit complete forms to the Batching Function

  13. Process "Out of Country" Form 4868 received after April 22nd with Box 8 checked as follows:

    1. With Primary TC 670 Only

    2. MFT 30

    3. Route deposit complete form to the Batching Function.

  14. If one remittance is received for both Form 1040 and Form 709 Extensions, refer to Multiple/Split Remittance, then follow the above processing steps.

    Note:

    If box II of the Form 4868 is requesting an extension for both "You and/or Your Spouse," input the payment designated on the form for each and perform step (8) above for both taxpayers.

  15. If a Form 4868 is received with a check for $100 million or more, the check must be returned to the taxpayer following instructions in IRM 3.8.45.1.1(5). The Form 4868 must be routed to the Batching Function following instructions in IRM 3.8.45.7.23(3), (4) & (5) .

Photocopy of Form 4868 Extending Form 709 Received from Lockbox
  1. Lockbox will return to the Payment Perfection Unit each day a photocopy of all Form 4868s extending Form 709.

  2. All Form 4868, extensions for Form 709 (one or more boxes in Part II are checked or there is an amount in Part IV) follow the following process:

    1. Research IDRS to determine if a BMF account has been established. Form 709 accounts are accessed by the SSN followed by a "V" (000-00-1234V); MFT 51.

    2. If an account has not been established, route to the Entity Unit to establish account.

    3. If there is no TC 460, input it.

    Note:

    If box II of the Form 4868 is requesting an extension for both "YOU" and "YOUR SPOUSE," follow (2) above for each taxpayer.

Form 4868 for U.S. Citizen Out of the Country
  1. A U.S. citizen or resident who lived out of the country on the regular due date of their return is allowed two (2) extra months to file their return. For a calendar year return, this would be June 15.

  2. The taxpayer may write "Taxpayer Abroad" across the top of Form 4868 to be considered as out of the country. Taxpayers check a Box on Line 8 which says, "Check here if you are out of the country and a U.S. citizen or resident."

  3. Approve "Out of the Country" Form 4868 if timely filed. The 4868 is considered timely filed when received by the 15th day of June, or first working day afterwards when the 15th falls on a weekend or holiday. Refer to Exhibit 3.8.44-3 for the specified grace period.

  4. Disapprove "Out of the Country" Form 4868 if not timely filed. Stamp "DENIED" at or near the bottom of Form 4868.

  5. Process "Out of the Country" Form 4868 using the procedures outlined in IRM 3.8.45.7.23(5) through (14). Exception: Process "Out of the Country" Form 4868 received after April 22nd with Box 8 marked using procedures outlined in IRM 3.8.45.7.23(13).

Form 4868 for Form 1040NR / Form 1040NR-EZ with No Wages
  1. If Box 9 is checked on Form 4868, consider timely filed if postmarked by June 15th, or the first working day afterwards when the 15th falls on a weekend or holiday. See IRM Exhibit 3.8.44-3, Timely Postmark Check List, for specific postmark instructions. Follow payment processing instructions in IRM 3.8.45.7.23.2.

Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax (CSPC Only)
  1. Form 8892 is considered timely filed when received by the 15th day of April, or first working day when the 15th falls on a weekend or holiday. See IRM Exhibit 3.8.44-3, Timely Postmark Checklist, for specific instructions.

    1. Date stamp Form and leave envelope attached.

    2. If the box in Part II is checked, or if there are entries on Form 8892, and it is attached to the Form 8892V, route for further processing.

  2. If Form 8892V is received with a remittance only, process the payment thru ISRP as follows:

    • With primary TC 670 only.

    • MFT 51.

    • Route deposit complete forms to the Batching Function (CSPC Only).

    • All other SPCs transship original Form 8892 to CSPC.

    Note:

    Original Form 8892 received by the SPC from the Lockbox should be transshipped to CSPC.

Form 2350

  1. Form 2350, Application for Extension of Time to File U.S. Income Tax Return (for U.S. Citizens and Resident Aliens abroad who expect to qualify for special tax treatment).

  2. Use Form 2350 as a source document and process through ISRP.

    1. TC 670.

    2. MFT 30 (IMF) and MFT 51 (BMF).

    3. Edit remittance amount on Form 2350 and forward to Code and Edit Function.

Form 8868

  1. Form 8868, "Application for Extension of Time to File on Exempt Organization Return" .

  2. If Form 8868 is for master file returns:

    1. Date stamp

    2. Route to ISRP

  3. If Form 8868 is for NMF Form 990BL and Form 6069:

    1. Date stamp

    2. Green rocker remittance amount

    3. Batch separately according to form number

    4. Route to Manual Deposit

    5. Transship Form 8868 to CSPC

Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes

  1. Form 4768, Application for Extension of Time to File or Pay U.S. Estate Tax Return (Generation-Skipping Transfer), for Form 706, Form 706A, Form 706D, Form 706NA, and Form 706QDT

  2. If entity is verified as established on IDRS thru CC BMFOLE, CC INOLET or CC ENMOD, use form as a source document and process through ISRP.

    1. MFT 52.

    2. TC 670.

    3. Tax Period 000000.

    4. Edit in green the remittance amount on Form 4768.

    5. Stamp Received Date on Form 4768 and forward to Estate and Gift function in CSPC.

  3. If entity is not established on IDRS, forward to the Entity function.

Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, OSPC Only

  1. Form 5558, Application for Extension of Time to File Certain Employee Plan Returns may be submitted to extend the due date of either Form 5500 series or Form 5330.

  2. These forms are processed at OSPC. For campuses other than OSPC, deposit the money thru ISRP and transship Form 5558 to OSPC.

  3. For OSPC, edit remittance amount in top margin of Form 5558 or edit rocker on line 1b.

  4. When remittance is attached to Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, verify in Parts II and III which form the extension is being filed for.

Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns

  1. Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns.

  2. Some Businesses may file a separate Form 7004 for an automatic six month extension of the following:

    1. Form 1120, Form 1120 (Subchapter T Coop), Form 1120A , Form 1120C, Form 1120-F, Form 1120FSC, Form 1120-H, Form 1120L, Form 1120SF, Form 1120ND, Form 1120PC, Form 1120POL, Form 1120REIT , Form 1120RIC, Form 1120S, Form 1120-SF, MFT 02

    2. Form 706GS(D), MFT 78

    3. Form 706GS(T), MFT 77

    4. Form 990-C, MFT 33

    5. Form 1041N, Form 1041QFT, MFT 05

    6. Form 1042, MFT 12

    7. Form 1065B, MFT 06

    8. Form 1066, MFT 07

    9. Form 3520A, MFT 42

    10. Form 8612, MFT 89

    11. Form 8613, MFT 14

    12. Form 8725, MFT 27

    13. Form 8831, MFT 89

  3. Beginning in 2009, some Businesses may file a separate 7004 for an automatic five month extension of the following:

    1. Form 1041, MFT 05

    2. Form 1065, MFT 06

    3. Form 8804, MFT 08

  4. Edit the following information on the source document if not present:

    1. Received date.

    2. Master File Tax (MFT) Code.

    3. Tax Period edited in YYMM format.

  5. Process through ISRP using TC 670 as referenced in IRM 3.8.44-28.

  6. Corporations may choose to attach Funds Transferred Electronically thru ACH document to Form 7004. When this happens, follow Canceled Check procedures. IRM 3.8.45.4.6

Substitute Extension Forms

  1. When substitute applications for extension of time to file are received, use substitute extension as source document.

    1. TC 670.

    2. Use the appropriate MFT for form indicated.

    3. Date stamp substitute extension.

    4. Edit remittance amount in green.

    5. Forward to Code and Edit Function after creating electronic voucher.

Federal Tax Deposit (FTD)

  1. On January 1, 2011, the Federal Tax Deposit (FTD) Program was decommissioned. Taxpayers are now required to make FTD Payments electronically through the Electronic Federal Tax Payment System (EFTPS). However campuses may still receive remittances with Form 8109 and Form 8109B (FTD Coupons), or correspondence indicating FTD payments. These payments should be returned to the taxpayer with Letter 2689C, Letter 4480C or Form 8121 stating that FTD payments should be made electronically through the Electronic Federal Tax Payment System (EFTPS).

Information Returns (IRP)

  1. Payments received with information Form W-2G, Form 1096, Form 1098, Form 1099 series, Form 5498 and Form 8038 cannot be used as a source document.

    1. Follow procedures in IRM 3.8.45.10.2, Analysis of PPU Presearch

    2. When application of payment is determined, apply payment with TC 670.

    3. If application of the payment cannot be determined, follow Unidentified Remittance procedures in IRM 3.8.45.10.3.

    4. Route forms to appropriate function.

  2. If a payment is received with an Enterprise Computer Center at Detroit (ECC-DET) EIN #38-1798424 in response to a Form 1099 Series Information Return with or without correspondence or a tax return, DO NOT apply the payment to this EIN. The payment should be returned to the taxpayer. Return the payment with a Letter 2689C, Letter 4480C or Form 8121 using an open paragraph with the following: We are returning your payment of [$$$] dated [mm/dd/yyyy]. The payment appears to have been made in response to our sending you a Form 1099[???] for calendar year [yyyy]. Form 1099[???] is not a tax bill; it provides information on interest income that you should report if you are required to file a tax return. Therefore, no payment is required.

Ozone Depleting Chemicals (Abstracts 19, 20, or 98)

  1. Taxes for ozone depleting chemicals may also be referred to as abstracts "19" , "20" or "98" and are identified as items 19, 20 or 98 on Form 720, Quarterly Federal Excise Tax return.

  2. Remittances received indicating repayment of erroneous refunds for ozone depleting chemicals; refer to IRM 3.8.45.17, IRS Refund Repayments.

  3. Remittances received with or without Form 720, indicating payment is for ozone depleting chemicals, process as follows:

  4. With Form 720, edit appropriate quarter. Process through ISRP.

    1. Tax period for Abstract 19 and 98 is quarterly.

    2. Tax period for Abstract 20 is first quarter.

    3. MFT 51 (BMF) and MFT 54 (NMF).

  5. Without Form 720, process through ISRP:

    1. TC 670

    2. MFT 03

    3. Tax Period

Patient-Centered Outcomes Research (PCOR) Fee (IRS Number 133)
  1. Payments received with Form 720 reporting IRS Number 133 indicating Patient-Centered Outcomes Research (PCOR) Fee should always be processed with a 2nd Quarter tax period.

    Note:

    When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133 use the IRS received date to help determine the tax period. If the return was received Dec. 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on Dec. 31, 2013 process as 201306). If the return was received after Dec. 31st, process to the subsequent 2nd quarter (i.e. Form 720 reporting IRS Number 133 received on Jan. 2, 2014 process as 201406).

Statute Cases

  1. If the Statute of Limitations is in jeopardy, payments require special consideration. The Statute of Limitations is 2 years and 10 months from the normal due date of return.

  2. For non-amended Statute Returns:

    1. Use TC 610 only. Send the check and posting document to ISRP. After processing route the return to Statue Control Group same day as received.

    2. If two or more remittances are received, treat as multiple.

    3. Process through InfoConnect or ISRP the same day as received.

    4. After deposit processing attach Form 4227, Intra-SC Reject or routing Slip to the form.

    5. Forward the non-remit form to the Statute Control Group in a red folder.

    6. Refer to IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates for normal due dates of returns,

    7. Do not flag returns identified as "secured by EP/EO" , or similar notation, for statute clearance.

  3. For amended Statute Returns:

    1. Process using TC 670, and secondary TC 570 with DPC 24.

    2. Follow c) through g) above.

  4. Do not route returns with the following conditions present to the Statute Control Unit:

    1. Any return(s) with indication of "Carryback" or "Net Operating Loss" ("NOL"), or the "NOL" box is checked on an Amended Return. Keep package together and expedite to ICT/CIS.

    2. Marked IRC "6020 (b)" or "NFR" or "Secured by Exam/Collections", "Secured by TE/GE", "Secured by TE/GE EP Exam", "Process as Original".

    3. "TC 59X" or "ICS" notated on the face of the return or "Process as Original" with a TC 59X in the margin.,

    4. Substitute returns prepared by Examination ("SFR" marked in top margin).

    5. Returns received with IDRS Letter 2566 or Letter 2566R or Letter 3219-N, or pink Form 3531 attached, or "ASFR" notated in top margin, or envelope including a "loose" tax return (no notice or letter attached) is addressed to the ASFR P.O. Box or Mail Stop in Austin or Fresno - route to ASFR.

    6. Marked "RD" in the top margin (indicates "Return Delinquency" and should be routed to CSCO, unless circled. If the literal "RD" is circled and the return is signed or notation of signed jurat on the "Sign here" line, route to Statute, if imminent.

      Note:

      If there is no "TC 59X" edited on the return, but the literal "Process as Original" is edited, route to Statute if it meets Statute criteria.

      Note:

      Do not route returns marked "NFR" to Batching; route to ICT.

Transshipment of Master File Returns/Documents

  1. Out of Area Master File Returns/Documents Processing may need to be transshipped.

    Note:

    Any and all forms which can be processed through ISRP should be processed through ISRP.

  2. Process returns/documents as source document.

  3. To process the remittance, use the return/document as a source document and process through ISRP:

    1. TC 610 (returns only) - Send the check and posting document to RPS. After processing, route the return for transshipment no later than the following business day.

    2. Appropriate MFT.

    3. Edit received date and remittance amount in green on return/document.

  4. If the remittance cannot be processed through ISRP, process through Manual Deposit following these procedures:

    1. Prepare and number Form 3244.

    2. Attach numbered copy of Form 3244 behind the return.

    3. Transship returns/documents to appropriate Campuses. See IRM 3.10.72 for appropriate site.

  5. If Form 1040ES and Form 1041ES cannot be processed through ISRP, process through Manual Deposit using these procedures:

    1. For Form 1040ES series, prepare Form 3244, Payment Posting Voucher, in duplicate using TC 430, and MFT 30.

    2. For Form 1041ES, prepare Form 3244, Payment Posting Voucher, in duplicate using TC 660, and MFT 05.

Miscellaneous Revenue Collections, or Conscience Fund

  1. Account 6400, Miscellaneous Revenue Collections, or the "Conscience Fund" , should be credited when remittances are received from taxpayers that are not assessable on their accounts. This account should be credited when any of the following are received:

    1. A letter or note is enclosed indicating the remittance is to ease the taxpayers conscience. A majority of these payments are anonymous.

    2. A letter or note with no signature and no indication that the remittance is for the Conscience Fund, and there is insufficient information on the remittance or envelope to identify the taxpayer.

    3. Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest.

  2. When a remittance is received that should be deposited in the "Conscience Fund" , process the remittance using the following procedures:

    1. Make a copy of the original letter for suspense. Purge after six months.

    2. Input deposit data through ISRP.

    3. Once remittances have been finalized and balanced through the transport, the total deposit will print on a OTCnet 215A Deposit Ticket under the appropriate account symbol. See IRM 3.17.63.15.33,Account 6400 Miscellaneous Revenue Collections (Nominal Account, CR Normal Balance).

    4. Forward memorandum copy of DT, second copy of Form 813C with the General Fund Recap Report to the Accounting Operation.

Prepaid Photocopy Fees

  1. Requests for photocopies or transcripts of Tax Returns are received on Form 4506, Request for Copy of Tax Return, Form 4506-T, Request for Transcript of Tax Return and Form 4506-T EZ, Short Form Request for Individual Tax Return Transcript. A current copy of each form is on the electronic publishing website, http://publish.no.irs.gov/catlg.html . Requests are reviewed for completeness and proper fee. Rejected requests should be returned to the proper recipient within three days of IRS receipt. Acceptable requests should be forwarded to the Return and Income Verification Services Function (RAIVS) by expedite delivery daily to ensure timely response to the customer.

    Note:

    Form 4506, 4506-T and 4506-T EZ should be processed at the campus it is received. Do Not transship to another campus. See IRM 3.5.20.5.1.2(4).

  2. IRM 3.5.20.2.6, Pre-processing Review of Requests for Return/Return Information with Remittance, provides specific guidelines for preprocessing review of these requests. Fees are only required at this time for "copies of tax forms." They are not posted at the master files and any reimbursement of fees must be made manually. Therefore, deposit of fees for unprocessable requests should be avoided. Contact the RAIVS function at your processing site for assistance in analyzing these requests. Requests with "live" fees should not be removed from the secured area of Receipt and Control.

  3. Other ways you may receive photocopy fees include:

    1. Form 8157, Check for Copy of Tax Return Not Accepted by Banks. Forward copy of Form 8157 with the deposit ticket to Accounting.

    2. Correspondence or other related documents.

    3. Accounting Packages from field offices may transship including Form 4506, or Form 8157 with remittances for processing.

  4. Prior to deposit, each request for photocopy must be reviewed for correct payment and completeness, otherwise refer to Unidentified Remittances procedures, IRM 3.8.45.10.3. If further assistance is needed, contact the RAIVS function.

  5. Compute the amount due based on the number of copies requested and compare with amount paid.

    1. The charge for a photocopy of each tax return is $50.00 .

    2. Do not reject a full paid copy request if it is for a tax form and year that may have been destroyed, per records holding or collection statute guidelines, without first researching to determine availability.

      Exception:

      Unless payment is received, provide copies of tax forms free of charge in the following cases shown in the table below. Contact the RAIVS function when any questions arise.

      If: Then:
      the Taxpayer or Preparer is in a FEMA declared Disaster Area. Refer to http://serp.enterprise.irs.gov/databases/irm-sup.dr/disaster.dr/disaster-toc.htm Provide copies.
      Taxpayer Advocate Cases Provide copies.
      IRS receives correspondence from a member of Congress or the White House staff Provide copies.
      Requests for copies of tax returns received as a result of applications for Qualified Mortgage Subsidy Bonds

      Note:

      These are always low-income taxpayers. Since most lenders will accept "account information" which is free of charge, requests for copies should be few.

      Provide copies.
      the taxpayer was "Killed in Terrorist Action" (KITA)/"Killed in Action" (KIA)/"Astronauts Killed in the Line of Duty" after December 31, 2002. Provide copies. Contact your local "KITA Coordinator" . Refer to http://serp.enterprise.irs.gov/databases/who-where.dr/kita_kia_coordinators.dr/kita_kia_coordinators.htm for the contact information.
      the taxpayer is serving in a Combat Zone Provide copies. Refer to IRM 5.19.10.6.2, Combat Zone Qualified Individuals and Areas.
      another Federal Agency requests copies. Provide them.
      IRS initiated the contact Provide copies to the filer. If POA requests it, use CC CFINQ to ensure they are authorized.
  6. Prior to deposit, review each request for correct payment using the following procedure:

    If And Then
    The request is for multiple items (e.g., transcripts and photocopies or for multiple copies of forms). Correct payment is received or the fee is overpaid, and request is complete per IRM 3.5.20.2.6.2, Reviewing Requests for Completeness Prior to Processing.
    1. Edit money amount on the request in green pen.

    2. Deposit payment per (10) of this subsection.

    3. Send request to RAIVS for processing.

    The request is for multiple items (e.g., transcripts and photocopies or for multiple copies of forms). Correct payment is received or the fee is overpaid, and request is not complete per IRM 3.5.20.2.6.2, Reviewing Requests for Completeness Prior to Processing. Reject request with remittance per (8) of this subsection. Include Form 13873-I/B, “IMF/BMF RAIVS Reject Checksheet”, and a blank Form 4506, indicating required items that were incomplete and explain a new check is needed.
  7. All requests must be complete before they can be processed, regardless of how the request is received.

    1. Each request must contain all information needed to be complete on the form or correspondence. The taxpayer's signature or authorized person's signature must be on the request document in order to provide authorization for disclosure. Do not send information to a third party whose name and address is not listed on the authorization signed by the taxpayer.

    2. If there is a TIN on the request, and you can determine the digits are simply "mixed," continue processing.

    3. Do not use attachments to perfect third party requests. Third party requests are requests where there is information in Item 5 of Form 4506, or where the taxpayer is telling IRS to send information to someone else on correspondence.

    If And Then
    The request is for item(s) requiring a fee (e.g., one or more copies of tax returns) or combination of items requiring a fee and no fee (e.g., Form W-2 information requests do not require a fee) No payment is received
    1. Review for completeness per IRM 3.5.20.2.6.2, Reviewing Requests for Completeness Prior to Processing.

    2. Reject request with remittance per (8) and (9) of this subsection.

    3. Include Form 13873-I/B, “IMF/BMF RAIVS Reject Checksheet”, and a blank Form 4506, indicating any required items that were incomplete and the amount of remittance required.

    A request is received where remittance is due Requester resubmits a check previously stamped "Non-Negotiable" and request is complete per IRM 3.5.20.2.6.2, Reviewing Requests for Completeness
    1. Reject request per (8) and (9) of this subsection.

    2. Include Form 13873-I/B, “IMF/BMF RAIVS Reject Checksheet”, and a blank Form 4506, explaining a new check is needed.

    3. Check request to ensure previous IRS received date is circled.

    Exception:

    Multi-purpose forms, such as loan applications, are not acceptable as valid authority of tax return/return information disclosure. As a general rule, only IRS/SSA Forms designed for disclosure of taxpayer data should be honored. Form 4506 or Form 8821 are the primary forms processed by RAIVS. Regulation 301.6103(c)-1 states the request for disclosure must be in written form and "pertain solely to the authorized disclosure." Other forms or handwritten requests can be processed, but should be reviewed by the local Disclosure Officer prior to disclosure.

  8. Use the following procedures when rejecting fees to the taxpayer:

    1. Stamp checks sent to the RAIVS function "Non-Negotiable "

    2. If a request is rejected directly to the requester, it is not necessary to stamp check "Non-Negotiable."

    3. Do not stamp money orders "Non-Negotiable"

    4. Cash of less than $10.00 received with a rejected Form 4506 may be returned to the taxpayer by regular mail. Ensure Form 4287, Record of Discovered Remittances, is annotated "return to taxpayer" and initialed by the manager prior to mailing.

    5. Cash of $10.00 or more received with a rejected Form 4506 will be returned to the taxpayer by certified mail.

  9. All rejected requests identified during preprocessing should be returned to the taxpayer listed in the "current address" provided in Block 3 on the Form 4506.

    1. If the "current address" is not listed in Block 3 of Form 4506. Mail the rejected request to the taxpayer at the address of record (e.g., pending address on CC ENMOD, or posted address on CC ENMOD or CC INOLE).

    2. Circle in green any previous IRS received date on all requests being returned to the taxpayer.

    3. A request by a taxpayer (designating information be sent to a third party) may be rejected back to a third party, rather than the taxpayer, if the only missing item is payment for photocopy.

      Note:

      If the only item missing is the payment for photocopy, the request may be rejected back to the third party.

  10. Route perfect Form 4506 to ISRP for processing under Account Symbol 20X6877. Batches must not exceed 100 items.

  11. Record time/volume of work performed under pre-processing review activities as defined in IRM 3.5.20.2.6, Pre-processing Review of Requests for Return/Return Information with Remittance and this subsection, to OFP 210-34000 (see IRM 3.5.20.2.5.1(2), Reporting Time for Form 4506, Form 4506-T, and Form 4506T-EZ Requests). Count by tax periods, not by request form.

Exempt Organization (EO) Photocopy Fees

  1. Form 2860, Document Transmittal and Bill, is used to bill requesters of copies of Exempt Organization Returns and DVDs of the returns, after the requests are processed.

  2. Remittances may also be received on Form 4506-A, Request for Public Inspection or Copy of Exempt or Political Organization IRS Form, or correspondence if media.

  3. Edit remittance on document in green pen.

    1. Input data through ISRP as Account Symbol 20-3220 for copies of returns.

    2. Input data through ISRP as Account Symbol 20X5432.5 for E.O. DVDs.

  4. Transship all deposit complete documents to the Ogden processing site. When a payment is received with Form 2860, forward a copy of the Form 2860 to the EO Photocopy unit (OSPC, MS:6716).

Offers in Compromise (OIC)

  1. OIC initial case processing has been consolidated at Memphis and Brookhaven Campuses. OIC payment processing for approved offers has been consolidated in Fresno. However, offers with remittances (COIC) and payments on approved offers (MOIC) may be received at other sites. These payments will be forwarded to Payment Perfection Unit (PPU) for processing as outlined below.

  2. All sites in receipt of remittances must safeguard receipts and adhere to internal controls.

  3. All remittances must remain in the secured area as directed by local management and in adherence to physical security requirements.

Centralized Offers in Compromise (COIC)
  1. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) provides that offers in compromise must include not only an application fee but either 20 percent of the amount offered or one installment payment. However, if the taxpayer qualifies for the low income waiver criteria, neither the application fee nor payment is required. See Form 656-B, Offer in Compromise (Booklet) for additional information. COIC payments will be processed through the Payment Check Conversion (PCC) System at Memphis and Brookhaven.

  2. Offers can be identified by the following:

    1. The payment is attached to an original Form 656, Offer in Compromise.

    2. Documentation attached to the remittance indicates that it is an application for an offer.

  3. When a remittance is received with Form 656, transship the entire offer package (the remittance, Form 656 and any attached documentation) to COIC in Memphis or Brookhaven.

  4. When a remittance is received only with related documentation that states that an offer is being made, transship the payment and all related documentation to COIC in Memphis or Brookhaven.

  5. When a remittance is received without any accompanying documentation to identify the payment as COIC, when a remittance is received with only "OIC" annotated on the remittance or when taxpayer intent cannot be determined, DO NOT transship the payment. Follow the MOIC procedures in IRM 3.8.45.7.38.2 below.

  6. Offer cases are assigned based on where the taxpayer resides. The following chart should be used to determine if offer packages should be forwarded to Memphis or Brookhaven:

    If the taxpayer resides in Forward the offer package to
    California, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Vermont, Virginia, West Virginia, Puerto Rico, or has a foreign address Brookhaven Internal Revenue Service
    COIC Unit
    Stop 680
    1040 Waverly Ave
    Holtsville, NY 11742
    Alaska, Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin, Wyoming Memphis Internal Revenue Service
    COIC Unit
    Stop 880
    5333 Getwell Rd
    Memphis, TN 38118
  7. All offer packages must be transshipped through overnight traceable method through Form 3210, Document Transmittal. Form 3210 must list each taxpayer's name and the amount of the related remittance.

Monitored Offers in Compromise (MOIC)
  1. Payments received on previously accepted offers must be processed by the receiving campus. DO NOT transship payments on previously accepted offers to Brookhaven or Memphis. Process them.

  2. To determine if a payment is for a previously accepted offer,

    1. Research of CC TXMOD shows a TC 780 on the account or

    2. Research of CC SUMRY shows the account is in STAT 71.

  3. Indicators that the payment is for a previously accepted offer and that research of CC TXMOD and/or CC SUMRY should be performed are:

    1. The payment is attached to a PHOTOCOPY of Form 656.

    2. Taxpayer correspondence received with the payment states the payment is for an OIC.

    3. The taxpayer annotates on the remittance "OIC" only and no other information is provided.

  4. Apply the payment to the oldest unexpired CSED on the taxpayer's account with a remaining balance due using TC 670 and DPC 09. Check CC IMFOLI to determine if any accruals are due on zero balance periods before applying payment to the next oldest CSED.

    Note:

    Apply the payment to the oldest unexpired CSED module with a remaining balance even if the taxpayer indicates that the payment is intended for another tax period.

  5. All correspondence/documentation received with payments on previously accepted offers must be transshipped to Brookhaven or Memphis. Use the chart below to determine which Campus the correspondence/documentation should be forwarded to. Payment Posting vouchers or slips of paper that state "payment enclosed," "check enclosed," "here's my payment" or similar, should not be considered as correspondence/documentation and therefore should not be transshipped with the correspondence/documentation. After posting the payment please destroy these types of source documents/payment posting vouchers/green rockered documents after 5 days. Only correspondence should be routed to Brookhaven or Memphis.

    If the taxpayer resides in Forward correspondence/documentation to
    California, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Vermont, Virginia, West Virginia, Puerto Rico, or has a foreign address Brookhaven Internal Revenue Service
    MOIC Unit
    Stop 663
    1040 Waverly Ave
    Holtsville, NY 11742
    Alaska, Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin, Wyoming Memphis Internal Revenue Service
    MOIC Unit
    Stop 813
    5333 Getwell Rd
    Memphis, TN 38118
  6. All documentation must be transshipped thru overnight traceable method along with Form 3210, Document Transmittal. List on Form 3210 the name of each taxpayer for whom documentation is being forwarded.

Sale of Seized, Acquired and Collateral Property Payments (For Sites Other Than Ogden)
  1. Reporting seized, acquired and collateral properties to the Revenue Accounting Control System (RACS) centralized in Ogden on October 1, 2003. Effective October 1, 2003, all new entries for seized property, acquired property must be remitted to Ogden by field offices. If new cases and remittances are sent to a site other than Ogden, the following actions are required:

    • Prepare Form 1963 , Collection Register (Deposit Funds, Refund Repayments, General Funds Receipts). Write OUT OF AREA DEPOSIT FUND on Form 1963.

    • Deposit the remittance (Prior to centralization, these payments were processed on ISRP).

    • Send the complete package with all documents included to Accounting in your campus.

Overpayment Notices

  1. Remittances received with an overpayment notice (CP 12, CP 12M, CP 13, or CP 24), post these payments with a TC 670/TC 570.

MFT 31 Payments

  1. When payments are received for MFT 31, process through ISRP.

Processing Collection Payments

  1. ISRP and IDRS have been programmed to accept input of a two digit Designated Payment Code (DPC) for payments secured by Collections personnel. DPCs are two-digit codes which serve a three-fold purpose.

    • Facilitate identification of payments.

    • Indicate application of payment to a specific liability.

    • Identify an event which resulted in a payment.

  2. Form 9465, Installment Agreement Request, when received with remittances, process through ISRP as follows:

    1. Use Form 9465 as a source document.

    2. Process Form 9465 with a TC 670 unless the Installment Agreement request is for a module with a zero balance and there is a TC 922 or TC 420 indicator. If the installment agreement is for an advanced payment of deficiency, use TC 640. See IRM 3.8.45.2.1, Valid Transaction Codes for Remittance Processing.

    3. MFT various.

    4. Forward Form 9465 to Compliance Services Collection Operations (CSCO) according to the state and the applicable BOD Code. Refer to IRM 3.10.72.15.5, Special Handling of Collection Forms – Form 9465, Form 433 Series, and Form 2159, Payroll Deduction Agreement for routing instructions.

Designated Payment Codes (DPCs)

  1. DPCs do not apply to payments received on routine balance due notices, CP 501, CP 503 and CP 504.

  2. DPC applies to collection actions (such as levy, offer in compromise, etc.) on balance due accounts.

  3. The majority of ACS payments will have a DPC of "05" for levies. The following is a list of valid DPCs authorized for input:
    00=Designated payment code not present on posting voucher
    01=Payment is to be applied first to the Non-trust fund portion of the tax (BMF MFT 01, MFT 03, MFT 09, MFT 11 and MFT 12)
    02=Payment is to be applied first to the trust fund portion of the tax (BMF MFT 01, MFT 03, MFT 09, MFT 11 and MFT 12)
    03=Bankruptcy, undesignated payment
    04=Levy on state income tax refund
    05=Notice of levy (Used only for levy proceeds received from a third party in response to a Notice of Levy and does not include payments from the taxpayer as a result of a levy.)
    06=Seizure and sale
    07=Payment received expressly for full or partial payoff of the Notice of Federal Tax Lien
    08=Suit
    09=Offer in compromise (OIC)
    10=Manually Monitored Installment Agreement
    11=Bankruptcy, designated to trust fund
    12=Cash bond credit (allowed with TC 640 only)
    13=Deferred taxes Omnibus Budget Reconciliation Act (OBRA)
    14=Authorization given by taxpayer to apply payment to expired CSED account
    15=Payments received with Form 8519 taxpayer copy of Notice of Levy
    16=Federal Electronic Funds Transfer (EFT) Levy Payment
    17=EFT payroll deduction installment agreement payment
    18=Federal Payment Levy Program received from primary taxpayer
    19=Federal Payment Levy Program received from secondary taxpayer
    20=State Income Tax Levy Program
    21=Manual Posting of State Income Tax Levy Payments
    22=Alaska Permanent Fund Dividend Levy Program (Systemic Posting)
    23=Manual Posting of Alaska Permanent Fund Dividend Levy Program
    24=Freezes payment for amended returns, Form 1040X and Form 1120X.
    26=Court-Ordered Criminal Restitution Payments
    31=Credit only this spouse (MFT 31 ONLY)
    33=OIC application fee for offers submitted under TIPRA legislation
    34=OIC 20% lump sum or initial periodic payment under TIPRA legislation
    35=OIC subsequent payments made during the offer investigation under TIPRA legislation
    36=ACA 5000A Individual Shared Responsibility Payments
    43=ACA 45R Small Business Health Care Tax Credit
    50=Installment Agreement User Fee, initial fee
    51=Installment Agreement User Fee, Reinstatement fee
    53=Discharges
    54=Private Debt Collection (a.k.a. CCS)
    55=Subordinations
    56=Withdrawals
    57=IUD Foreclosures
    58=Redemptions; Release of right of redemptions
    59=Form 706 Liens Decedent Estate POCs
    61=Offshore Streamlined Filing Compliance Payment
    99=Miscellaneous payment other than 01 through 14

Collection of Child Support Payments

  1. When money is owed to another Federal or State Agency the Debtor Master File (DMF) controls and offsets excess money collected or refunds (to be issued to the taxpayer) to the controlling State or Federal Agency or Taxpayer Offset Program (TOP).

  2. When remittance is received indicating "Child Support" , research IDRS using CC TXMOD and/or CC IMFOLT. Remittance can be applied to that module.

  3. If TC 896/TC 898 is present, process payment as follows:

    1. TC 670

    2. MFT

    3. Tax Period

    4. Process through ISRP

  4. If TC 896/TC 898 is not present, process as follows:

    1. TC 670

    2. MFT 30

    3. Tax Period

    4. Post the payment to the last module on IDRS with a TC 150.

Lien Payments-CSPC Only

  1. Most Notice of Federal Tax Lien payments will be received in P.O. Box 145595 with Letter 3640 /Letter 3640A/Letter 3641/Letter 3172 or Form 668(Y). These payments will receive priority for processing.

  2. Prepare Form 3244 with TC 670 and DPC 07.

  3. Process through ISRP.

  4. Forward all correspondence to Compliance, Stop 8420G.

Automated Collection System (ACS)

  1. Remittances received through the special ACS post office box must be processed using ISRP whenever possible.

    Note:

    Affordable Care Act (ACA) payments received in the ACS post office box should be processed with the appropriate ACA Designated Payment Code (DPC) following instructions in IRM 3.24.133-3(16), Programs 15500 and 45500 . See IRM 3.8.45.28.17 for identifying possible Affordable Care Act payments.

  2. With remit notices, correspondence or remittance only processing is done using the following procedures:

    1. Edit a payment posting voucher with the missing information.

    2. Annotate source documents with the appropriate DPC. See IRM 3.8.45.9.5(5).

  3. Route change of address information and correspondence to the ACS Unit in Compliance.

  4. All third party payments received with or without Form 668A(C), Form 668W(C), and Form 668W(ACS), Notices of Levy, should be processed through PPU using the Payment Perfection IAT tool whether perfect or imperfect. Process with DPC 05 unless the IAT Payment Application screen shows Status 60. If the Payment Application Screen indicates Status 60, further IDRS research must be completed manually using the instructions beginning in IRM 3.8.45.9.5(4)e-g concerning IDRS Command Code IADIS. Process with DPC 05 or NO DPC according to research and as specified in the table of IRM 3.8.45.9.5(5).

  5. Form 8519, Taxpayer's Copy of Notice of Levy, process as follows:

    1. Form 8519, Form 668A(C) and Form 668W(C) are similar in design, except for the DPC.

    2. Form 8519 contains all pertinent taxpayer information needed for processing.

    3. Edit DPC 15, the applicable TC and the check amount to the left of the box labeled Total Amount Due.

    4. Underline the tax period. When multiple tax periods are levied, process Full Paid or Part Paid remittances as perfect. Apply remittance to the earliest tax period as the payment should split and roll to the appropriate tax period.

ACS IDRS Manual Research for Payment Perfection

  1. The following subsection provides the definition for ACS payments and instruction in the use of Designated Payment Codes (DPC). The Integrated Automation Technologies (IAT) Tool, (formerly known as the IDRS Decision Assisting Program (IDAP)) should be used when researching all third party ACS payments whether perfect or imperfect. This subsection also provides general guidance for manual IDRS research and application of ACS payments if the IAT system is unavailable.

  2. An ACS payment is usually sent to one of the ACS P.O. Boxes listed in section 3 below and can be defined as:

    1. A payment received with a Form 668-A, "Notice of Levy" . This is a one time garnishment to the taxpayers bank account that will be sent to the IRS by a financial institution as a third party check.

    2. A payment received with a Form 668-W, "Notice of Levy on Wages, Salary, and Other Income" , These payments are remitted to the IRS through the taxpayer's employer as a third party check.

    3. A Levy payment received without a Form 668-A or Form 668-W.

    4. A payment received from the taxpayer in response to Form 8519, "Taxpayers Copy of Notice of Levy."

    5. Federal Agency Levy payment that are issued on Department of the Treasury checks.

      Note:

      If over-stamping is necessary, be careful not to obscure the taxpayer's SSN.

    6. Third Party payments received with obsolete IRS ACS P.O. Box addresses that have been forwarded by the United States Post Office to one of the consolidated ACS sites. These payments should be treated as if they were received directly in the Consolidated ACS sites P.O. Box. Follow all the procedures and definitions outlined in this subsection when processing these payments.

      Note:

      For items forwarded by the USPS, use the date the items are received by the consolidated sites as the IRS Received date. If by chance they have been transshipped from another IRS office, use the date that it was received by the first IRS office.

    7. Payments received from the taxpayer on a personal check, cashiers check, or money order and the taxpayer indicates it is intended as an ACS payment, e.g., an ACS (LTnn) Letter is attached.”

    8. Any payment received from a third party in which the third party indicates on the check or posting document it is a "garnishment."

  3. The above mentioned remittances are received by the consolidated ACS Payment Processing Sites P.O. Box addresses listed below:

    Wage and Investment
    Fresno
    Internal Revenue Service
    P.O. Box 24017
    Fresno CA 93779
    Control Base Number:
    0772200001
    Kansas City
    Internal Revenue Service
    ACS Support
    Stop 5050 or without a stop number
    P.O. Box 219420, 219236 or 419236
    Kansas City MO 64121-9236
    Control Base Number:
    0772200001
    Small Business/Self Employed (SB/SE), Tax Exempt/Government Entities (TE/GE) and Large Business and International (LB&I)
    Cincinnati
    Internal Revenue Service
    ACS Correspondence
    P.O. Box 145566
    Cincinnati Ohio 45250-5566
    Control Base Number:
    0272000001
    Philadelphia
    Internal Revenue Service
    ACS Correspondence
    P.O. Box 8208 or P.O. Box 57
    Philadelphia PA 19101-8208
    Control Base Number:
    0566100001
    Kansas City
    Internal Revenue Service
    P.O. Box 219690
    Kansas City MO 64121-9690
    Control Base Number:
    0566100001
  4. The following chronological steps should be taken when applying the payment to the taxpayer's account.

    1. If a payment is received in the ACS P.O. Box and the TIN is not present, research CC NAMEI (IMF) or CC NAMEB (BMF) to attempt to identify the correct TIN. If the TIN is identified, continue to (d). In all cases below, as payments are applied, route correspondence to ACS Support.

    2. If unable to locate the TIN using CC NAMEI or CC NAMEB, research the Remittance Transaction Research (RTR) System, then make a telephone call using the telephone number on the check, or obtain the telephone number from directory assistance in order to obtain TIN (IRM 3.8.45.4.17). If the TIN is identified, continue to (d).

    3. If still unable to determine the TIN, deposit as an "Unidentified Remittance File" (URF) with an annotation of "ACS payment" .

    4. If the TIN is identified, research with CC SUMRY. Apply the payment to the earliest unexpired CSED with an open collection Status 22. If multiple periods have the same CSED date, apply the payment to the earliest tax period. If there is no tax period with an open collection Status 22, continue to (e).

      Note:

      If CC SUMRY/CC TXMOD are unavailable, research CC IMFOLI/CC BMFOLI to determine which modules have a balance due. Use CC IMFOLT/CC BMFOLT to research all balance due modules for the earliest unexpired CSED.

    5. If CC SUMRY shows modules in Status 60, research CC IADIS to determine the Installment Agreement Locator Number (ALN). The last four positions of the ALN determine the actions taken in IRM 3.8.45.9.5(4)(e)1, IRM 3.8.45.9.5(4)(e)2, and IRM 3.8.45.9.5(4)(e)3 below. The ALN appears on the IDRS IADIS screen in the following format:

      AGREEMENT LOCATOR NO 1234-567890-XXYY

      Note:

      IRM Exhibit 5.19.1-9, Installment Agreement Locator Numbers, provides an explanation of the XXYY fields of the ALN.


      1. If the payment has an ALN with XX08, apply payment to the earliest unexpired CSED with a DPC 05. The ALN of 08 that appears in the YY positions is defined as a Continuous Wage Levy, from ACS or a Revenue Officer. The YY position denotes conditions affecting the agreement.
      2. If the ALN is other than XX08, apply payment to the earliest unexpired CSED with no DPC.

      Note:

      The IAT Tool has been programmed to systemically research Command Code IADIS. If in STATUS 60 and the last two digits of the Agreement Locator Number (ALN) are 08 when researching IADIS, the new DPC Box will display DPC 05. Apply payment with a DPC 05. If in STATUS 60 and the last two digits of the Agreement Locator Number (ALN) are other than 08 when researching IADIS, the new DPC Box will display “NO DPC”. Apply payment without a DPC Code. If a third party payment is in a status other than STATUS 60, the new DPC Box will be blank. Apply the appropriate DPC according to the table in IRM 3.8.45.9.5.

    6. If research shows there is no balance due in Status 22 or Status 60, check CC INOLES for X-Ref TIN. If Filing Status Code is "2" (IMF only) and the Debt Indicator Field is "I" (IMF and BMF), apply payment to the X-Ref TIN using research procedures in (d) and (e). If payment cannot be determined through paragraphs (d) and (e), or a X-Ref TIN cannot be found, or if a X-Ref TIN is found but the Filing Status Code is other than "2" (IMF only) and the Debt Indicator Field is other than "I" continue to (g).

    7. If there is no current or prior Status 22 or Status 60 modules for the primary or X-Ref TIN, apply payment to the most recent tax module on the primary TIN. Apply DPC Code according to instructions in IRM 3.8.45.9.5(5). If there is no prior "LEVY" category control set, create a control base to ACS thru CC ACTON only when using DPC 05. When controlling the account use the correct Control Base Number listed above in IRM 3.8.45.9.5(3), which is based on BOD and State mapping.

      Note:

      DO NOT apply a DPC Code to a taxpayer payment.

  5. The following table outlines what DPC should be used for each type of ACS payment.

    Type of ACS Payment Heirarchy DPC
    Payments received from the taxpayer

    Note:

    DPC 15 should be used whenever a payment is received with Form 8519.

    No DPC
    Any type of payment received with Form 668-A, Notice of Levy DPC 05

    Exception: If payment is in Status 60 with ALN other than XX08 process with NO DPC.
    Any type of payment received with Form 668-W, Notice of Levy on Wages, Salary or Other Income DPC 05

    Exception: If payment is in Status 60 with ALN other than XX08 process with NO DPC.
    Any type of payment received with Form 8519, Taxpayer's Copy of Notice of Levy DPC 15
    Federal Agency Levy payments that are issued on Department of the Treasury checks DPC 05

    Exception: If payment is in Status 60 with ALN other than XX08 process with NO DPC.
    Third Party payments not in Status 60 received with current or obsolete IRS ACS P.O. Box addresses DPC 05
    Third Party payments in Status 60 with ALN XX08 received with current or obsolete IRS ACS P.O. Box addresses DPC 05
    Third Party payments in Status 60 without ALN XX08 received with current or obsolete IRS ACS P.O. Box addresses No DPC

PPU IDRS Presearch

  1. The Integrated Data Retrieval System is used to research taxpayers accounts to determine or verify proper application of remittances.

PPU General

  1. Remittances without necessary identification to apply to Master File (MF) and Non Master File (NMF) must be researched thru the Integrated Data Retrieval System (IDRS), the Automated NMF System and the Automated Collection System (ACS), when appropriate. Apply payment to the Unidentified Remittance File (URF) if research or telephone contact to taxpayer fails to identify payment application and/or instructions. (Refer to IRM 3.8.45.10.2(5))

  2. Remittances must be deposited within 48 hours of the received date of principal mail drop. Maximum of up to 96 hours if indications are that a follow-up action will result in applying a credit to the taxpayer's account. Deposit Activity's perfection function's research capability and expertise are limited and should not extend beyond terminal research, telephone contacts to taxpayers and requests for Command Code MFTRA, CC BMFOL, CC IMFOL, or Automated NMF transcripts.

    1. Managers must maintain an inventory log of total receipts by received date, items researched, closures, telephone calls made, and items not deposited.

    2. Set up folders to strictly control each received date. Remittances of $50,000 and over must receive priority handling.

  3. Remittances of less than $1 may be deposited into the 6540 account by preparing Form 2007 , Schedule of Small Credits Cleared.

Analysis of PPU Presearch

  1. Use taxpayer intent when applying payments. IDRS research is not necessary, if the taxpayer has designated:

    1. Form type

    2. Tax year or multiple tax years

    3. TIN (SSN or EIN)

    4. Name control

    5. There is no indication the payment is intended as an installment agreement payment. (If the payment is received with forms such as 433-D, 2159 or 9465, written words such as installment agreement, installment, payment, payment plan, monthly payment or similar, that is an indication of an installment agreement. In this case, see IRM 3.8.45.10.2(3) below.)

    Apply remittance to the earliest tax period when taxpayer has designated multiple tax years. The payment should split and roll to the appropriate tax period. Post payment with the appropriate transaction code. (Refer to Document 6209 or IRM 3.8.45.2.1).

    Note:

    If the taxpayer has clearly designated the application of the payment but has not included all the above information, research IDRS for the missing information.

  2. If the taxpayer has not clearly designated the application of the payment and has not provided an IRS balance due notice, an in depth review and analysis may be necessary before the payment can be applied accurately.

    1. If a payment is received with a non remit form, research the taxpayer's account and apply the payment using the research instructions in IRM 3.8.45.4.20.

    2. If a payment is received from a third party and Levy or Garnishment is indicated on the remittance, payment posting voucher or documentation, process the payment following instructions in IRM 3.8.45.9.5(4).

  3. The following steps discuss how to identify and process an installment agreement payment:

    1. Generally, taxpayer intent is used when applying payments; however, the taxpayer cannot designate the application of their installment agreement payment. If there is an indication that the payment is for an installment agreement (received with forms such as 433-D, 2159 or 9465, written words such as installment agreement, installment, payment, payment plan, monthly payment or similar), research for the earliest CSED unless an IRS Balance Due Notice is provided.

      Collection Status Codes
      12 Full Paid, no Balance Due
      20, 21, 54, 56, 58 1st thru 4th Notice, Balance Due
      22, 24 ACS Balance Due
      23 Below Tolerance, Balance due
      26 Field Collection Cases
      53 Currently not collectible, Balance Due
      60, 61, 63, 64 Installment Agreement, Balance Due
      71 OIC Pending

      Note:

      An expired CSED is one on which the statute date has passed (for example, 12/21/2004 is an expired CSED). Even if there is a balance due do not apply a payment to a CSED on which the statute date has passed.

    2. The earliest CSED is the one that is set to expire first.

    3. Status 14 is an Estate (Form 706 ) with Installment Agreement privileges. These payments require extra care. Failure to properly identify and apply the payment will result in default of the installment agreement and unnecessary collection action.

    4. If the payment exceeds the balance on the module with the earliest CSED, apply the entire payment to the earliest unexpired CSED. The system will automatically calculate the accruals and roll any remaining balance to the subsequent modules in CSED order.

  4. If the payment is not for an installment agreement (Status 60, Status 61, Status 63, Status 64 or Status 14), refer to the following:

    1. Use taxpayer intent when applying payments if the taxpayer has indicated where the payment should be applied and the TIN and Name Control are present. (See IRM 3.8.45.10.2(1))

    2. If there are no modules in balance due status and the payment is not an ACS/Levy payment, then research CC TXMOD/CC TXMODA or CC IMFOLT/CC BMFOLT for the following audit indicators: TC 420, TC 424, "L" Freeze Code. If any of these indicators are present on CC TXMOD/TXMODA or CC IMFOLT/CC BMFOLT, apply payment with TC 640 to indicate Audit, various MFTs.

    3. Check for CP 2000 indicators: TC 922, "F" Freeze Code, and/or Campus' URP control number. If any are present on CC TXMOD/CC TXMODA or CC IMFOLT/CC BMFOLT, apply payment with TC 640, MFT 30.

    4. Check for substitute for return (SFR) indicators, varies at each SC. Apply as TC 640, MFT 30.

    5. If IDRS/CFOL is unavailable, retain work until research can be accomplished. If remittance is $1,000 or larger, photocopy front and back of remittance for later research. Deposit the original remittance into the Unidentified Remittance File (URF).

  5. If research and/or telephone contact with the taxpayer (refer to IRM 3.8.45.4.17) does not result in the application of the payment, process as an Unidentified Remittance using the procedures in IRM 3.8.45.10.3.

Unidentified Remittances

  1. Unidentified Remittance File (URF). Source documents that cannot be perfected because of insufficient information to apply remittance are input as unidentified payments.

  2. Review source document to insure the following are true:

    1. No information is available for application,

    2. Telephone contact cannot be made,

  3. Review each source document and edit in green the following information:

    1. Taxpayer's or business' full name. If the name is unknown or illegible, edit source document "TPUN" (Taxpayer unknown) or "UNKNOWN."

    2. Taxpayer's or business's full address.

    3. Date stamp source document.

    4. If no received date, use postmark on envelope.

    5. If no envelope or illegible postmark, use date on remittance .

      Note:

      See IRM Exhibit 3.8.44-3, Timely Postmark Checklist, for specific instructions on postmarks.

    6. Trace ID number. See IRM 3.8.45.2.3 for instructions on obtaining Trace ID numbers.

  4. Photocopy front of remittance for further presearch in Accounting Operations. Photocopy back of remittances made payable to taxpayer and endorsed to IRS.

  5. Using numbering machine, stamp unidentified remittance (UR) control number (DLN) on each source document. The DLN is a 14 digit control number assigned to each source document.

  6. Batch source documents in batches of 50 and by DO code.

  7. Prepare adding machine tape in duplicate for each batch by adding each remittance. These tapes are used to balance the URF deposit.

  8. Follow the below procedures for IDRS input of URF items:

    1. CC FMADD: Use to request CC URADD format establishing accounts on unidentified remittance file.

    2. Key in CC FMADD.

    3. Terminal response will be CC URADD screen

    Note:

    The IDRS terminal will keep a running total of remittances. Compare totals on adding machine tape with total on screen. If totals disagree, use CC URINQ to research each record to locate error. Accounting should be notified immediately whenever input errors are made. Input error corrections referenced in IRM 3.8.45.10.4 must be corrected the same day before overnight processing of Unidentified files to avoid a RACS out of balance condition with the URF File.

  9. When the Perfection function in Receipt and Control Operations adds the unidentified remittance to the URF, a three part letter (Letter 3731(CG)) can be generated to the taxpayer through IDRS if a name and address are available. However, permission to utilize the procedure to generate Letter 3731(CG) must be coordinated with the Local Accounting Unidentified Team before this option is used. If a name and address can be determined, the UR Notice Indicator in line 4 of CC URADD must be changed to a "Y" to generate the Letter 3731(CG).

    1. Overlay the "N" in the UR Notice Indicator field with a "Y". The UR Notice Indicator field is in line 4 of CC URADD following the MMDDYYYY field.

    2. 1ST NAME LINE should be overlaid with first name line of the taxpayer. The first four positions identify the name control.

      Note:

      Use a comma in the first name line only when the order has been changed to create the correct name control, i.e., Carter Rvoc Tr., John. The length of 1st Name Line is limited to thirty-five (35) characters.

    3. The "N" should remain in the UR Notice Indicator field if a Name and Address cannot be determined. No letter will be generated.

  10. Follow these procedures for CC URINQ input: (Used to verify remittance amount input to URF)

    1. Key in CC URINQ and press new line key three times.

    2. Key in unidentified control number in DLN format.

      Note:

      Each record within the file contains an unidentified remittance control number, amount, type of payment, status code, Letter 3731(C) indicator, name, address, TIN (if known), and all available payment and follow-up information. Line 4 indicates original remittance amount input.

  11. Prepare Form 813A from adding machine tapes, prepare Form 784 and OTCnet 215A Deposit Ticket. Send documents, Form 813A, Form 784, OTCnet 215A Deposit Ticket and second copy of encoding tapes to Accounting.

  12. Deposit the check on the same day as the CC URINQ input.

  13. When URF register is received on the following day, verify totals and prepare the Accounting package. Refer to (10) above.

Correcting Unidentified Input Errors

  1. Many input errors are correctable. Requests to correct a Command Code URADD Unidentified input error should be coordinated with the Unidentified Team in Accounting, as Accounting is responsible for the integrity of the Unidentified database. Sensitive Command Codes URAPL, URENT and UROUT should not be used to correct the Unidentified Database by Receipt and Control Remittance Perfection Technicians, employees assigned to 809 Receipt Books or any employee that processes payments. IDRS Restrictions (RSTRK with definer “R” or “U”) should be placed on Receipt and Control employees that process payments which will prevent use of these sensitive command codes. When input errors are detected, the Accounting Unidentified Team should be immediately contacted to allow Accounting to correct the error on the same day it is made. The correction request must be made on the same day the error is made to avoid out of balance issues for the Accounting Unidentified Team. Coordinate with the Accounting Unidentified Team to establish the latest timeframe a correction request should be routed to Accounting.

  2. Procedures for correcting the money amount are as follows:

    1. Key in CC FMAPL.

    2. Terminal response will be CC URAPL screen.

    3. Overlay CC URAPL with CC UROUT.

    4. Line 2: Key in Z or V over A; Z is to correct a money amount and V is to void the account.

    5. Line 3: Key in name control.

    6. Line 4: Key in correct money amount. Used only for a Z correction.

    7. Line 9: For Z correction, key in ENTERED IN ERROR. For V correction, key in ESTABLISHED IN ERROR.

  3. Follow these procedures to correct name:

    1. Key in CC URENT and press new line key.

    2. Key in name control on UR record and press new line key.

    3. Key in UR control number and press new line key.

    4. Key in name line.

  4. When all URF items are input, compare terminal totals with the adding machine tape totals.

    1. If totals balance, detach remittances from each source document. Keep in same sequence order as numbered documents. Forward source documents, remittances, and adding machine tape to Manual Deposit for further processing.

    2. If totals do not balance, verify remittance amount with the input terminal amount and make necessary corrections on the same day. Corrections that were made on terminal require adjustment on URF computer printout, which will be received the following day.

Miscellaneous Input

  1. Miscellaneous IDRS uses include IDRS Remittance Processing, Address Changes and Levy Source input.

Address Changes

  1. Route address changes to Entity.

Levy Source Input

  1. If remittance is processed through ISRP you do not need to input the levy source. The bank trans data is captured through ISRP and downloads into Taxpayer Delinquent Account (TDA) to the Levy Source File.

  2. If remittance is processed through IDRS or Manual Deposit, follow the following procedures:

  3. CC LEVYS: Used to input bank(s) name and address from remittances. If current payment has been applied on CP 504 notice and balance is more than authorized dollar tolerances, input of levy source is required.

  4. Using information on the notice input CC TXMODA, refer to IRM 2.3.11, Command Code TXMOD, for input instructions.

  5. Do not input a levy source from a personal check to a business account, unless business is a sole-proprietor and the name on the check matches the business entity.

  6. Do not input a levy source from a business or corporate check to a personal account.

  7. If the account is in the proper status code overlay CC TXMODA with CC LEVYS, refer to IRM 2.4.31-1, CC LEVYS, for input instructions.

    Note:

    If nine levy sources exist, replace Employment Commission (EC) source using information from remittance.

  8. Review screen(s) for a levy which may already be present for bank. If so, no action is necessary. If levy hasn't been established, overlay CC LEVYS with CC LEVYE, refer to IRM Exhibit 2.4.31-2, CC LEVYE, for input instructions.

STAUP for Foreign Remittances

  1. Input of CC STAUP with Definer "S" is required on all taxpayer accounts when payments are received with a foreign remittance that will be deposited with Bank Of America. Use of the IAT Tool and the Quick Command Code (CC) feature is the preferred method of inputting the STAUP with Definer "S". The Status Code will generate systemically when using the IAT Tool Quick CC feature. Foreign deposit processing is the only payment processing activity that needs STAUP on an account. Refer to IRM 2.4.28, Command Codes STAUP, STATI and STATB. Restrictions on Remittance Perfection Technician's IDRS profiles, will prevent them from inputting Command Code STAUP. STAUP input must be a separate duty from payment processing, therefore STAUP must be completed by employees other than Remittance Perfection Technicians or employees that handle checks during deposit processing. Therefore the Accounting Hard Core Payment Tracer function has agreed to perform the input of the STAUP. Prepare a spreadsheet with the information needed to complete the STAUP for each foreign payment and route to the Hard Core Payment Tracer Team in Accounting. Copies of the STAUP action should be printed by the Hard Core Payment Tracer Team as described in IRM 3.8.45.10.8(2) below and routed back to the Receipt and Control function that performs the foreign deposit process along with a copy of the spreadsheet to be placed with the case file.

  2. Input of CC STAUP causes a history item to be generated in the Action History Section of the tax module. The history item contains the current date, the terminal operator employee number, the Action History Source Code and the activity code "STAUP nnnn" (nnnn = the status requested plus the number of cycles delay, if present, requested by the terminal operator). Information needed to complete the STAUP are the TIN, MFT, Tax Period, Status Code and number of cycles delayed. SeeIRM 2.4.28.6, CC STAUP "S" Definer - Terminal Input and the Job Aid on the following SERP website: http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/staup.htm, for input guidance. Foreign Remittances should be delayed for 8 cycles. Receipt and Control will update the spreadsheet with the TIN, MFT and Tax Period information. The Hard Core Payment Tracer will have to determine the Status Code to use and update the spreadsheet. However use of the IAT Tool and the Quick CC feature is the preferred method of inputting the STAUP with Definer "S". The Status Code will generate systemically when using the IAT Tool Quick CC feature. See IRM 2.4.28.7.2, CC STAUP IMF, BMF, IRAF Status Update Request, for information on Status Codes. Print a copy of the STAUP output screen to keep with the case file. If the account is not in balance due status or was not previously in a balance due status, a STAUP cannot be placed on a taxpayer's account. Print out a copy of the TXMOD which shows there is no balance due to keep with the case file. Accounting must route or scan/email the copies of the STAUP output screen or TXMOD screen in the order they appear on the spreadsheet to Receipt and Control to associate with their case files. If an error code is encountered, see IRM 2.4.28.9, CC STAUP, STATI, STATB Error Codes, to determine corrective action.

    Note:

    Attempts should not be made to place a STAUP on current year 1040ES payments or Unidentified payments as they will not have a balance due.

Treasury Bonds

  1. Treasury Bonds are redeemed, at face value, upon owner's death. Proceeds of redemption are applied to estate taxes. If original Treasury Bond is received, transship to:

    Bureau of the Fiscal Service
    Division of Security Accounts and
    Definitive Accounts Section
    300 13th Street, S.W.
    Washington, D.C. 20239

  2. On a daily basis, the Division of Securities Operations of the Bureau of the Fiscal Service (Formerly Bureau of Public Debt (BPD)) will request Philadelphia Regional Financial Office to issue U.S. Treasury checks payable to "Director of Internal Revenue Service for the Benefit of Estate" for each Campus responsible for the estate. Also look for "FEAT PAYMENT" .

  3. Form PD 1782, Application for Redemption, will be faxed to each Campus approximately seven days before Treasury Check arrives. It will contain the following information:

    1. Name of decedent

    2. Decedent's TIN

    3. Date of decedents death

    4. Tax due date

    5. Redemption date

    6. Amounts

  4. Use faxed copy of Form 1782 as a source document. Use TC 678 credit, and received date stamped in upper left corner of faxed copy of Form 1782 as transaction date. Process through ISRP.

  5. Use these procedures to Presearch IDRS for account.

    1. If not found, use IDRS to establish account.

    2. If no address is available, use Campuses address to establish entity.

Military Payments

  1. The Manual Deposit Function will send Military Payments including the Form DD214 and/or Form 3108 by UPS to:


    Internal Revenue Service
    Benefits and Service Team
    310 Lowell Street
    Andover, MA 01810
    ATTN: STOP 239

Processing Refund Anticipated Loans Checks

  1. When a refund anticipated loan check is intercepted and returned by the bank, process the payment using a Form 3245 posting voucher, Refund Cancellation or Repayment. Post the payment with a TC 720 which will freeze the money from refunding or offsetting.

  2. Whenever a taxpayer returns a Refund Anticipated Loan check with correspondence indicating that ID theft may be involved, (typically in these cases, the taxpayer will claim they were not entitled to the refund) or if an Integrity and Verification Operation (IVO) (formerly AMTAP) issued letter (i.e., Letter 4115-C or Letter 4464-C) is attached, route the check and correspondence to the following address on Form 3210.

    Internal Revenue Service
    Attn: IVO Management
    PO Box 24012
    Fresno, CA 93779

External Leads Program (ELP) Processing (Cincinnati and Fresno Only)

  1. Integrity and Verification Operation (IVO) (formerly Accounts Management Taxpayer Assurance Program (AMTAP)) receives leads from financial institutions as well as internal leads from business units throughout the IRS. External Leads involve questionable federal tax refunds from financial institutions and various other sources. External leads may involve Treasury checks, direct deposit/ACH, refund anticipation loans or checks and pre-paid debit cards.

  2. There are two ways the IRS receives refund repayments for external leads.

    1. Paper Check Deposit Processing

    2. Electronic Processing via the Transaction Reporting System (TRS) Credit Gateway

  3. The External Leads Program processes returned refunds identified as potentially fraudulent. IVO (formerly AMTAP) completes the research to identify impacted taxpayers, prepares Form 3245, Posting Voucher-Refund Cancellation or Repayment, for application to the appropriate taxpayer account and forwards to the Manual Deposit Function for processing. Manual Deposit will prepare the Accounting package according to instructions below for input of Form 3245. Manual Deposit should adhere to the 24 hour deposit standard timeframe for depositing and crediting taxpayer payments when receiving the Form 3245 from IVO and preparing for release to Accounting.

ELP Paper Check Deposit Processing (Fresno Only)
  1. The Fresno Campus will receive a Bank/Cashiers Check and spreadsheet from a bank with taxpayer information concerning Refund Repayment funds being returned to the IRS. The check and spreadsheet will be received from the bank addressed to the following P.O. Box address located in Receipt and Control:

    Internal Revenue Service
    Attn: IVO Management
    PO Box 24012
    Fresno, CA 93779

  2. Please use the following instructions for processing these checks.

    1. The check and spreadsheet will be opened in Extracting Second Sort and routed directly to the Manual Deposit Function.

    2. The check should be deposited through Manual Deposit and placed into the 4971 account. When preparing the OTCnet Deposit Ticket, Box 6 should contain “ELP” (External Leads Program (ELP)) to identify and alert Accounting that the deposit ticket amount should be journaled to the 4971 account. Box 9 on the Deposit Ticket should contain the Treasury Account Symbols 20X0903.

      Note:

      Effective July 15, 2013, the Trace ID number must have a "12" as the System ID. Coordinate with the Planning and Analysis BBTS Coordinator to initiate an on-line 5081 request to modify user profiles with permission to generate Trace ID numbers with System ID "12".

    3. Manual Deposit will make three photocopies of the check, two photocopies of the spreadsheet, prepare the OTCnet deposit ticket (make two photocopies), complete Form 3460 (Transmittal Memo Accounting Control Documents) and encoding tape.

    4. Manual Deposit will release Accounting package which includes the OTCnet Deposit Ticket, photocopy of the check, the spreadsheet, Form 3460 and encoding tape to RACS. If a spreadsheet was not received from the bank, do not hold up the deposit. Indicate on the Form 3460 that a spreadsheet was not received.

    5. Manual Deposit will send photocopies of the OTCnet Deposit Ticket, check and spreadsheet to IVO (formerly AMTAP) on Form 3210. Notate on the 3210 if a spreadsheet was not received from the bank.

    6. Manual Deposit will retain photocopies of the OTCnet Deposit Ticket, check and spreadsheet in Receipt and Control according to Manual Deposit retention guidelines (One year following the current processing year)

    7. After IVO (formerly AMTAP) has completed needed research of the taxpayer information, they will forward a Form 3245 to Manual Deposit for DLN numbering and preparation of Form 813.

    8. Manual Deposit will obtain DLN from Off-Line BBTS DLN Generation, with Doc Code 45 and Blocking Series 200 – 299. Use the Julian Date of the Deposit Ticket in the DLN. Stamp the DLN on Form 3245.

    9. Manual Deposit will Prepare Form 813. Ensure the Trace ID Number from the original OTCnet Deposit Ticket has been stamped on the Form 3245 and entered on Form 813. Although the last six digits of the 20 digit Trace ID Number were not generated during the original Deposit process, the last six digits (positions 15 thru 20) of the Trace ID Number will have to be assigned to each 3245 and on the corresponding 813, to allow input of the Trace ID Number during processing of the 3245s in the ISRP System by Data Conversion.

    10. Manual Deposit will route Form 3245 and 813 to Accounting.

ELP Electronic Processing via the Transaction Reporting System (TRS) Credit Gateway (Cincinnati and Fresno)
  1. IRS will receive these returned refunds electronically from Banks using the Transaction Reporting System (TRS). IVO (formerly AMTAP) will research all payments and prepare Form 3245 for each taxpayer they can identify. For the remaining taxpayers they cannot identify, IVO (formerly AMTAP) will prepare a Documentation Letter needed for Accounting and Manual Deposit balancing and accountability purposes. Receipt and Control Manual Deposit Function will only have responsibilities for DLN generation, numbering of Form 3245, preparation of the Form 813 and stamping of the Trace ID Number on each Form 3245.

  2. Manual Deposit will receive from Accounting a copy of the Deposit Ticket which will include the Trace ID Number using a System ID Code of (12).

  3. Manual Deposit will receive from IVO (formerly AMTAP) the following items which should be listed on Form 3210:

    1. Copy of the Deposit Ticket.

    2. Form 3245 for each taxpayer account.

    3. Listing of taxpayer information associated with the Form 3245s. An adding machine tape may be attached.

    4. IVO (formerly AMTAP) Documentation Letter with Deposit Ticket number and checklist of steps taken to identify items remaining in the 4971 Account. If the Form 3245s add up to the total of the deposit Ticket, an IVO (formerly AMTAP) Documentation Letter will not be sent by IVO (formerly AMTAP).

      Note:

      If a Deposit Ticket has a large volume, IVO (formerly AMTAP) may send only part of the Form 3245s associated with the Deposit Ticket. When that occurs the Form 3245s should be accompanied by the pages of the listing with the appropriate taxpayer information. Ensure the total of the listings balance back to the total of the 813s prepared. For the Form 3245s that are sent in smaller batches, the IVO (formerly AMTAP) Documentation Letter will be submitted with the final batch associated with the Deposit Ticket. If the Form 3245s in the smaller batches all add up to the Deposit Ticket an IVO (formerly AMTAP) Documentation Letter is not needed, and therefore will NOT be submitted with the final batch associated with the Deposit Ticket. If the documentation received does not balance or the Form 3245s do not match the listing, return the package or contact IVO (formerly AMTAP) for correction

  4. Manual Deposit instructions for processing Form 3245 are as follows:

    1. Obtain DLN from Off-Line BBTS DLN Generation, with Doc Code 45 and Blocking Series 200 – 299. Use the Julian Date of the Deposit Ticket in the DLN. Stamp the DLN on Form 3245.

      Note:

      Because of the volume that may be received and the limited number of DLNs that can be assigned through BBTS, please ensure that all blocks utilize the maximum number of 100 documents to a DLN. Each File Location Code used during Off-Line DLN Generation has 10,000 count that can be used (Blocking 200-299).

    2. Prepare Form 813. Ensure the total of the Form 813s balance back to the Deposit Ticket. Whenever an IVO (formerly AMTAP) Documentation Letter is received with the copy of the Deposit Ticket, taxpayer information listing and Form 3245s, ensure the total of the Form 813s and the total listed on the IVO (formerly AMTAP) Documentation Letter, balance back to the Deposit Ticket. If the Form 3245s are received in small batches ensure the Form 813s balance back to the associated listings received with the Form 3245s.

    3. Ensure the Trace ID Number from the TRS Deposit Ticket has been stamped on the Form 3245 and entered on the corresponding Form 813. The TRS Deposit Ticket will only show the first 14 digits of the Trace ID Number. The last six digits (positions 15 thru 20) of the Trace ID Number will have to be assigned to each Form 3245 and listed on the corresponding Form 813. When the Form 3245s are received separately in smaller batches but still associated with on Deposit Ticket, keep track of the Trace ID Numbers already assigned to ensure that the Trace ID Numbers do not duplicate.

    4. Route copy of the Deposit Ticket, Form 813s, numbered 3245 Forms, taxpayer information listings and the IVO (formerly AMTAP) Documentation Letter (if provided) to Accounting. Each Form 813, associated 3245 Forms and documentation should be placed in a separate brown folder.

    5. Use OFP Code 170-92500 to record hours and count when numbering Form 3245s, preparing Form 813s and stamping the Trace ID Number on the Form 3245s.

Bureau of the Fiscal Service (BFS) (Formerly Bureau of Public Debt (BPD)

  1. Checks received at the Campuses for the Bureau of the Fiscal Service (BFS) (Formerly the Bureau of Public Debt (BPD)) will be processed following the procedures below.

    1. Sort BPD or BFS checks by State.

    2. Prepare adding machine tape of remittances by State.

    3. Encode checks with BPD endorsement.

    4. Total State amount(s) separately and grand total tape.

    5. Identify each State on encoder tape.

    6. Prepare Form 1963, Form 784 and OTCnet 215A Deposit Ticket.

  2. All Campuses will send information on taxpayers who contribute to the Bureau of Public Debt (it is now know as the Bureau of the Fiscal Service), specifically the name, address and amount of the check, to the following address:

    Internal Revenue Service
    333 W. Pershing Rd
    STOP 6566 P-5
    Attn: Rick Holmes
    Kansas City, MO 64108

Foreign Check Remittances

  1. Remittances drawn on foreign banks payable in U.S. Dollars through U.S. banks should have the U.S. bank's routing symbol printed in MICR ink in the lower left corner of the check and have a nine digit routing number. Process with regular deposit. If the routing symbol is missing, process manually per IRM 3.8.45.1.10.

    Note:

    If the Bank routing symbol and the nine digit routing number are missing from the check, but the routing symbol and routing number are written on the check or provided, the MICR routing information can be printed on the check and processed with the regular deposit.

    Note:

    Postal money orders received from the following countries can be processed domestically through the regular deposit with a routing number of 000008002.

    Antigua and Barbuda Japan
    Bahamas Montserrat
    Barbados Peru
    Belize St. Kitts
    British Virgin Islands St. Lucia
    Dominica (Windward Islands) “Advice and Pay to” Copies St. Vincent
  2. All remittances drawn on foreign banks with no United States bank routing symbols payable in foreign currency or United States Dollars (USD) should be deposited through Bank of America. These remittances are classified as either supported or unsupported by Bank of America.

    • Supported foreign remittances are defined as any remittance listed as one of the 25 countries/currencies in the OTCnet "Country of Deposit" drop down menu and also as listed in IRM Exhibit 3.8.45-10.

    • Unsupported foreign remittances are defined as any remittance not listed as one of the 25 country/currencies in the OTCnet "Country of Deposit" drop down menu and should be considered “Other” in the OTCnet Country of Deposit drop down menu. Note that United States/United States Dollar is no longer listed in the OTCnet Country of Deposit drop down menu and therefore should be considered as “Other”.


    When selecting the appropriate country of deposit in OTCnet for “supported” foreign remittances not in USD, the current exchange rate will systemically be displayed in Box 4 of the deposit ticket. These remittances are considered “Cash Letter” items by Bank of America and the IRS should receive a provisional credit from Bank of America. “Cash Letter” items should be confirmed within one week. Follow up with Bank of America must be performed if the deposit has not been confirmed in OTCnet within one week of the deposit date. When selecting “Other” for unsupported foreign remittances or supported foreign remittances in USD, these remittances are considered “Collection” items by Bank of America (exception Canadian checks in USD and certain Great Britain checks in USD, they are considered “Cash Letter” items). “Collection” items do not receive a provisional credit and will not be confirmed in OTCnet until funds have been collected from the taxpayer's bank. This process may take from 6 to 8 weeks. Follow up on these items should be performed if they are not confirmed within six weeks. Contact Karen Dolores, Bank of America Customer Service at 888-715-1000 Ext. 21600 for follow up inquiries. Foreign items will be processed using the following procedures.

    1. Prepare Form 3244, payment posting voucher, if remittance is received with a tax return as referenced in IRM 3.8.45.2.3(6).

    2. Date stamp payment posting voucher and tax return with received date if not present. If received from another IRS office ensure the date received at the campus is stamped on the payment posting voucher and tax return for required internal control record keeping. Circle out the date to prevent it from being processed as the original received date.

    3. Process using Manual Deposit IRM 3.8.45.25 guidelines.

    4. Number with a DLN the payment posting vouchers, using original IRS received date.

    5. Command Code STAUP must be input on the taxpayer's account, see the instructions in IRM 3.8.45.10.8 for coordinating with the Accounting Operation Payment Tracer function for input of CC STAUP to delay collection activity.

  3. Create an OTCnet Deposit Ticket. A Deposit Ticket may be created for each check or several checks may be batched together with one Deposit Ticket if they are considered supported and are the same currency type. Steps for creating an OTCnet Deposit Ticket for must enter fields are the following:

    1. Select "Create Deposit" and click on "Foreign Check Item" .

    2. When selecting the "Country of Deposit" use the following table to determine the appropriate option in the drop down menu:

      IF AND THEN Bank of America Considers It/Follow Up Action Taken
      If a check is received from a country that is supported by Bank of America (One of the 25 Countries listed in the Country of Deposit drop down menu), It is NOT payable in United States Dollars (USD), Select the appropriate country in the OTCnet Country of Deposit drop down menu. A "Cash Letter" item. It must be confirmed in one week. Follow up with Bank of America in one week if not confirmed.
      If a check is received from a country that is supported by Bank of America (One of the 25 Countries listed in the Country of Deposit drop down menu) , It is payable in USD, Select "Other" in the OTCnet Country of Deposit drop down menu. A "Collection" item. Can take up to 6-8 weeks to confirm. Follow up with Bank of America in six weeks if not confirmed.
      If a check is received from a Canada bank or Great Britain bank identified in IRM 3.8.45-11, It is payable in USD Select "Other" in the OTCnet Country of Deposit drop down menu. A "Cash Letter" item. It must be confirmed in one week. Follow up with Bank of America in one week if not confirmed.
      If a check is received from a country that is NOT supported by Bank of America (Not listed as one of the 25 Countries listed in the Country of Deposit drop down menu), Select "Other" in the OTCnet Country of Deposit drop down menu. A "Collection" item. Can take up to 6-8 weeks to confirm. Follow up with Bank of America in six weeks if not confirmed.
    3. Money Amount field. Input the check amount. The amount will be systemically converted and appear in Box 4 of the deposit ticket for supported countries that were selected in the Country of Deposit drop down menu. If "Other" was selected in the Country of Deposit drop down menu, Box 4 of the deposit ticket will be blank. Bank of America when confirming the deposit in OTCnet will update the deposit ticket with the appropriate amount after the collected amount is received from the taxpayer’s bank.

    4. Select "Bank of America 121000358 – 1257268465" as the Financial Institution Information.

    5. Box 6 Input: Information will automatically be generated in Box 6 according to Country of Deposit selection and money amount entered. Please input any information in Box 6 that will help identify the type of deposit, such as "Cash Letter Item," "Collection Item" , "USD" .

    6. Enter Trace ID Number.

    7. Enter Appropriate Tax Class.

    8. Enter the tax class amount(s) in the Foreign Amount field when “Other” was previously selected in the Country of Deposit drop down menu. The total amount entered should add up to the Foreign Currency Amount leaving a variance amount of zero. Enter the tax class amount in the Amount (USE) field when a country was previously selected in the Country of Deposit drop down menu. This amount should equal the Deposit amount leaving a variance of zero. A zero variance amount indicates the Tax Class totals balance to the Deposit amount.

    9. With the decommissioning of the Ca$hlink System, a paper Form SF215A can no longer be used as the deposit ticket of record. Instances when the OTCnet system is down and a Deposit Ticket cannot be generated to be placed with the deposit, a paper Form SF215A can be used to accompany the deposit. However an OTCnet Deposit Ticket must be input at the earliest opportunity after OTCnet is back up and running.

    10. If you have any questions or concerns about entering a foreign check in OTCnet, please contact the Treasury OTC Support Center at 866-945-7920 or via email at FMS.OTCChannel@citi.com.

    11. Mail the deposit thru overnight traceable method to:

      Bank of America
      Dallas Foreign Transit Items
      1950 N Stemmons Fwy
      Suite 6001
      Dallas, TX 75207

  4. The Trace ID number for remittances drawn on foreign banks will be manually generated from BBTS, using the Offline Trace ID Generation window in the Manual Deposit screen, for input to OTCnet. After the bank has performed the cash conversion and the payment posting voucher information is input to BBTS, another Trace ID number will be automatically generated. Line through this 14 digit number with a thin line marker on the Form 813 /Form 813A and replace it with the original Offline Trace ID number that was input to OTCnet. The six digit sequence number of the entire 20 digit Trace ID Number on the payment posting vouchers and Form 813/Form 813A will not need to change.

    Note:

    Campuses may choose to use an electronic version of Form 813/Form 813A instead of generating from BBTS. Coordination with Accounting will be needed to ensure the Form 813 is routed to Data Conversion for processing to establish the DLN on the Service Center Control File (SCCF).

  5. Hold a photocopy of the check (front only), copy of the OTCnet 215A Deposit Ticket and the payment posting voucher, in a suspense file until the deposit is confirmed by the bank. Monitor OTCnet to determine when the deposit is confirmed. The confirmed Deposit Ticket will show the actual date of deposit to the bank and the money conversion amount. When confirmed, make a print of the Deposit Ticket from OTCnet. Make a pen and ink change to Block 2 of the Deposit Ticket to change the voucher date to the confirmation date. Immediately forward a copy of the corrected Deposit Ticket to RACS as part of the Accounting Package. The following items must remain or be added to the Suspense File for retention:

    1. File copy of Form 813A and Form 813

    2. Part 3 of Form 784

    3. Agency copy of OTCnet 215A Deposit Ticket

    4. Photocopy front of check

    5. Payment Posting Voucher or document used in lieu of Payment Posting Voucher (photocopy of first page of return, IDRS print, etc.)

    6. Copy of IDRS STAUP screen printout, or STAUP Error Message received if account is not in balance due status.

    Note:

    Retain Suspense File package in a locked cabinet for three years following the current processing year.

  6. A log or database must be maintained for all foreign remittances deposited with Bank of America. The log or database should contain the following information:

    1. Deposit Ticket Number

    2. Deposit Amount

    3. Original IRS Received Date. If a foreign payment is received from the Lockbox Bank transshipment, and the document that is used as the payment posting voucher does not have a received date, then coordinate with the unit from which the payment and source document are received to ensure that the documents are stamped with the Lockbox received date. The payment posting document should be stamped with the campus date stamp using the Lockbox received date; edit “LB” beside the campus name

    4. Date received at the campus if received from another IRS Office. Coordinate with the Receipt and Control area responsible for routing to the Foreign Deposit Desk any Foreign Remits received from other IRS Offices or Lockbox Banks, to ensure the official Submission Processing campus received date stamp is used to stamp the campus received date on documentation. Circle out the Submission Processing campus received date in red to ensure the original IRS Received Date is used for processing the payment.

    5. Deposit Date

    6. Confirmed Date or Rejected Date in OTCnet. If Rejected, document that it was Rejected and also update the Reject Log with required information explaining what action was taken (ie., payment returned to taxpayer on certain date or payment redeposited under Deposit Ticket # ??????? on certain date). See IRM 3.8.45.15.2(6).

    7. Date and explanation of any follow up action with Bank of America

      Note:

      If the confirmed OTCnet Deposit Ticket, has not been received within one (1) week from the date in box 2 for "Cash Letter" items or six (6) weeks for "Collection" items, contact Karen Dolores, Bank of America Customer Service at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . or via email contact, to inquire on the status. Keep a record of all follow up calls/emails and actions taken. Contact RACS and inform them of the status of the deposit ticket. Contact Headquarters Analyst ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if confirmation has not been received within 30 days for "Cash Letter" items, or 60 days for "Collection" items.

    The log or information in the database should be maintained for three years following the current processing year.

  7. If no source document is received and research cannot determine taxpayer posting information, refer to unidentified remittances in IRM 3.8.45.10.3.

Foreign Currency Remittances

  1. When foreign currency is received in the mail it must be converted to U.S. dollars.

    Note:

    These procedures are for foreign currency only, not coins, which are considered of too insignificant in value to convert and ship back to the issuing country.

  2. Only one type of foreign currency may be included in the same deposit ticket.

  3. To determine the conversion rate, log on to OTCnet, select the type of foreign currency that is being converted, and input the currency amount. An U. S. Equivalent (USE) will be quoted. The USE is the amount input as the OTCnet voucher amount.

    1. When creating the Deposit Ticket in OTCnet, be sure to select Foreign Currency Cash and Bank of America 121000358 - 1233442049 as the bank.

    2. Refer to the OTCnet guidelines for specific instructions.

  4. If the USE is $5,000 U.S. dollars or less, send the currency thru "Certified" mail to the following address:

    Bank of America GBN-LA
    Mailcode: CA9-924-01-11
    2706 Media Center Drive
    Los Angeles, CA 90065-1733

  5. If the USE is greater than $5000, call the Bank of America banknote trading desk at 800-387-1012, who will make arrangements for an armored courier pickup of the currency, for delivery to:

    Bank of America NA
    Mailcode: CA9-708-L3-13
    1200 West 7th Street, Level 3
    Los Angeles, CA 90017–2349

  6. When the funds are received in Los Angeles, the Banks Foreign Currency Services (FCS) Department will credit the funds to the OTCnet bank account. The banks Concord team will confirm the OTCnet voucher the morning after the credit posts to the OTCnet account.

  7. Process the Form 3244 and document using manual deposit guidelines.

    1. Date stamp.

    2. Number source documents using original received date.

  8. If no source document is received, refer to Unidentified Remittances procedures in IRM 3.8.45.10.3.

Unprocessable Foreign Checks

  1. Foreign checks that cannot be processed by Bank of America for various reasons will be returned to the Campuses. Bank of America will use a form letter to return these payments and will place a check mark or "X" beside the reason why the check(s) could not be processed. The OTCnet remarks section will also show the reason the check was rejected. A debit voucher will not accompany these checks.

    Note:

    If the unprocessable condition can be identified by the campus prior to deposit, use the letters referenced in IRM 3.8.45.15.2(2) to resolve the unprocessable condition before being sent to Bank of America.

  2. If the check was returned for the following reasons, use Letter 2689C or Letter 4480C to return the check to the taxpayer and request a replacement check:

    1. Post dated checks.

    2. Stale dated checks (checks more than 6 Months old are considered stale dated by Bank of America).

    3. Checks that are not signed.

    4. Checks where the currency amount has been altered.

    5. Checks on which the words and numerical amount on the check differs.

    6. Checks where it is not clear what Country the drawee bank is located.

    7. Checks previously dishonored or so marked on their face.

    8. Traveler's checks.

  3. If the check was returned because the check is not dated, enter the original received date on the check and redeposit it.

  4. If the check was returned for the following reasons, correct the error or problem, prepare a new deposit ticket and redeposit the payment.

    1. Foreign and U.S. currencies cannot be on the same deposit ticket.

    2. The amount of check(s) received differs from the amount listed on the deposit ticket.

    3. An invalid agency location code is shown on the deposit ticket.

    4. If a check is received back with the remarks "A. Amount is less than minimum - fees will likely exceed USD value of the check" and an explanation of ."A. MINIMUM ACCEPTABLE AMOUNT SHOULD BE $200.00/USD OR IT'S EQUIVALENT", redeposit the check. If it comes back a second time, contact your HQ Analyst to discuss course of action.

  5. A Rejected Foreign Check case file of all Rejected Items received back from Bank of America must be maintained and contain the following:

    1. Copy of the printed OTCnet Rejected Voucher.

    2. Copy of the rejected check (front and back).

    3. The Form Letter or OTCnet Rejected printout received from Bank of America listing the reason the check was rejected.

    4. Documentation showing IRS action. (Re-deposited or returned to taxpayer). This can be noted on the Form Letter.

    5. Copy of new Deposit Ticket if re-deposited.

    6. The Rejected Foreign Case File and Log should be maintained for three (3) years following the current processing year.

  6. A Rejected Foreign Check log with a record of all Rejected Items received back from Bank of America must be maintained and include the following:

    1. Original Deposit Ticket Number.

    2. Original Deposit Date.

    3. Rejected Date.

    4. Bank of America reason for rejecting.

    5. Action taken (Re-deposited or returned to taxpayer) with brief explanation of corrective action or why the check was returned to taxpayer.

    6. Re-deposit Date or Date the check with a letter was returned to the taxpayer.

    7. Deposit Ticket Number of Re-deposit.

    8. Confirmed Date if Re-deposited.

    9. Follow up action with Bank of America of unconfirmed re-deposits.

  7. The Rejected Foreign Case File and Log should be maintained for three (3) years following the current processing year.

  8. A monthly printout of Rejected Items must be pulled from OTCnet to verify all rejected items are being documented in the Rejected Foreign Check case file and log. Instructions for pulling the OTCnet Rejected Items are as follows:

    1. In the OTCnet main Online Application page select the “Deposit Processing” tab, then select “Search Deposits”

    2. The “Search Conditions” option in the “Search Deposit” Screen should be entered as follows:

      Search Conditions Action
      OTC Endpoint Enter the appropriate Campus
      Deposit Status The “Rejected” option should be selected in the drop down menu
      Deposit Type The “Foreign Currency Check” option should be selected in the drop down menu
      Voucher Date From Enter the first day of the month
      Voucher Date To Enter the last day of the month
      In the “DDA” box of the Financial Institution Section Enter the DDA Number of Bank Of America
    3. Select “Search” at the bottom of the screen. Print the screen showing the listing of rejected Items and verify that all rejected items are listed in the log and a file is accounted for.

    4. Select the Voucher Number for each of the rejected items and print out each voucher to keep with the documentation file for each rejected Item.

  9. If a Debit Voucher is received from the bank, make a copy and immediately route to the local Accounting function.

Offshore Voluntary Disclosure Program (OVDP) Foreign Checks

  1. If a foreign check drawn on a foreign bank is received with an original Offshore Voluntary Disclosure Program (OVDP) package at the Austin Submission Processing Center, see instructions in IRM 3.8.45.30.7.

IRC 7804(c) Letter

  1. When a notice, letter, or correspondence referring to IRC 7804(c), demand for repayment of IRS embezzlement is received, process as NMF.

    1. Process IRC 7804(c) letter as NMF.

    2. TC 670 with TC 570.

    3. MFT 20.

    4. Prepare Form 813 and DT with Account Symbol 20-0110.

    5. Route the document to Accounting Operations.

  2. If payment is received without IRC 7804(c) letter, use letter as source document and process as IRC 7804(c) letter through Manual Deposit as NMF.

IRS Refund Repayments Processed Through ISRP

  1. If the IRS receives an acceptable form of payment from a taxpayer and the remittance, tax return or document/correspondence indicates the payment is for the erroneous portion of a refund that the taxpayer believes is too large an amount, or any credit the taxpayer feels they are not entitled to, process the IRS Refund Repayment through ISRP using instructions in IRM 3.8.44-26 and IRM 3.24.133-8. Only IMF and BMF Refund Repayments should be processed through ISRP. NMF Refund Repayments should still be processed through Manual Deposit following instructions below in IRM 3.8.45.17.1. These instructions should not be used when the taxpayer returns a Government Treasury Refund Check, see instructions in IRM 3.8.45.4.19.

    Note:

    When entering the Deposit Ticket tax class information in OTCnet, special funds should be input separately under the appropriate Treasury Account Symbol (ie., 20x6877 for Photocopy Fees and 20X0903 for Refund Repayments). Special funds accounts are combined into one total as 20X0000 in Box 9 of the ISRP SF215 Deposit Ticket therefore Box 9 should not be used to complete the OTCnet Deposit Ticket. The ISR0548 Report should be utilized to determine the Treasury Account Symbol amounts for input to OTCnet

  2. Whenever a taxpayer repays a refund they feel they are not entitled to and correspondence indicates that ID theft may be involved, or if an IVO (formerly AMTAP) issued letter (i.e., Letter 4115-C or Letter 4464-C) is attached, route the check and correspondence to the following address on Form 3210:

    Internal Revenue Service
    Attn: IVO Management
    PO Box 24012
    Fresno, CA 93779

  3. Form 3245, Refund Cancellation of Repayment, should be processed through Manual Deposit using Account Symbol 20X0903.

  4. Repayment to Refund Appropriations are received from taxpayers repaying refunds with Letter 510C, Form 4728 or related correspondence.

    1. Attach letter to Form 3245 or to an IDRS print.

    2. If the payment exceeds the amount over paid, prepare a Form 3244, using TC 670 and TC 570 for the difference with Account Symbol 20-0110.

    3. Input deposit data should be processed using Manual Deposit and using Account Symbol 20X0903 for refunding Internal Revenue Collections and Account Symbol 20X0904 for refunding Internal Revenue Collection Interest.

  5. Refund Repayments are remittances received from taxpayers repaying a refund.

    1. For Master File use: TC 720, Blocking Series 200-299.

    2. For Non-Master File use: TC 720, Blocking Series 800-899.

    3. Document Code 45.

  6. Forward any taxpayer correspondence (Letter 510C, Form 4728 or related correspondence) with a photocopy of front and back of check to appropriate issuing unit.

  7. Prepare and forward to Accounting Operations, Form 1963, Form 813, Form 784 and the OTCnet 215A, Deposit Ticket.

IRS Refund Repayments Processed Through Manual Deposit.

  1. NMF IRS Refund Repayments or any Refund Repayment that for some reason cannot be processed through ISRP should be processed through Manual Deposit with Form 3245, Posting Voucher - Refund Cancellation or Repayment, using Treasury Account Symbol 20X0903.

  2. Refund Repayments received from taxpayers with Letter 510C, Form 4728 or related document/correspondence should be processed as follows:

    1. Attach copy of letter or related document/correspondence to Form 3245.

    2. If the payment exceeds the amount overpaid, prepare a Form 3244, using TC 670 and TC 570 for the difference with Treasury Account Symbol 20-0110.

    3. Input deposit data using Treasury Account Symbol 20X0903 for principal amount refunded and Treasury Account Symbol 20X0904 for interest paid on principal amount refunded.

    4. For Master File use: TC 720, Blocking Series 200-299.

    5. For Non-Master File use: TC 720, Blocking Series 800-899.

    6. Document Code 45.

  3. Prepare and forward to Accounting Operation, Form 1963, Form 813, Form 784, and the OTCnet 215A, Deposit Ticket.

  4. Forward any taxpayer correspondence (Letter 510C, Form 4728 or related documentation/correspondence) with a photocopy of front and back of check to appropriate issuing unit.

Repayment of Informant Reward-OSPC Only

  1. A remittance received from a taxpayer indicating it is a repayment of an informant reward.

    1. Prepare Form 1963 , Collection Register, and OTCnet SF 215A, Deposit Ticket. Annotate Account Symbol 20X5433 on both forms. Use Column (g) of Form 1963 to annotate Treasury Account Number.

    2. Annotate the original case number on the documentation.

    3. Forward the Deposit Ticket and supporting documentation to RACS for appropriate journal action.

    4. If a Repayment of Informant Reward is received at an SPC other than Ogden, follow Out of Area Master File Returns/Documents with payments transfer procedures in IRM 3.8.45.5.3.

Presidential Election Campaign 20X5081.1

  1. Process remittances through Manual Deposit as follows:

    1. Complete Form 2221 in duplicate

    2. Identify Presidential Election Campaign on encoding tape

    3. Prepare DT with Account Symbol 20X5081.1

  2. Submit appropriate copies of DT, Form 2221, and document to Accounting Operations with Accounting package.

Redepositing Dishonored Checks

  1. Dishonored Checks are checks returned to IRS by banks (e.g., written and numeric amounts differ, no signature, etc.). Redeposit the dishonored checks using the following procedures.

  2. Form 8250, Request to Redeposit Checks, is received from Accounting Operations in duplicate, with dishonored checks, copies of dishonored checks and two copies of the Debit Voucher.

    1. Prepare Form 784 by listing each check's encoded amount.

    2. Form 784 total must balance with Form 8250 total.

    3. Prepare separate deposit ticket using current deposit date.

    4. Redeposit to Campus' bank same day received.

    5. Send copy of Form 784 and first three copies of deposit ticket to Campus' depositary.

    6. Forward to Accounting Operations the original copy of the Debit Voucher, copy of Form 8250, original Form 784, and copy of dishonored checks redeposited.

    7. Retain duplicate copy of the Debit Voucher in the Deposit Function.

Redepositing Free Checks

  1. Free Checks are checks returned to IRS by banks (e.g., checks that were endorsed and not encoded).

    1. Free checks are received from Accounting Operations with Form 3244 and are processed according to Manual Deposit procedures.

    2. Prepare separate deposit ticket using transaction date on Form 3244.

State Income Tax Levy Program (SITLP)

  1. SITLP coordination duties have increased over past years, due to revisions made to the program and changes resulting from consolidation. The SITLP Coordinator must be the initial contact point between the states, campuses and computing centers. The SITLP Coordinator will be responsible for ensuring that all aspects of the program operate correctly at the campus level, and will be the liaison with campus functions, computing center functions and state counterparts.

  2. The package from the state will be addressed to the SITLP Coordinator. Receipt and Control should date stamp the package and contact the SITLP Coordinator immediately upon receipt. The package will consist of a payment (check), and may also include an acknowledgement form to sign and return back to the state. The states have been encouraged to send this information thru an overnight traceable courier service. The SITLP payment should not leave the secured area. Normal procedures for maintaining security of the payment should be followed. In most cases, the SITLP Coordinator will ensure that the check is held by Receipt and Control/Cashiers until the levy file processing has been completed. They will make necessary copies of the checks for their records and for the Revenue Accounting Control System (RACS).

    Note:

    The payment must not be retained for more than 24 hours. If it will take more than 24 hours, secure the payment with Receipt and Control Operations Manager until after the run.

  3. The SITLP Coordinator will then complete the following actions:

    1. Inspect the package to ensure that the necessary documents are enclosed. If the payment is missing, immediately contact the state to secure the missing information.

    2. Provide RACS with a copy of the check to balance with the TDA 55 run.

    3. Check Control D to verify completion of the TDA 55.

  4. RACS will check Control D for, or be notified by the SITLP Coordinator of, a successful TDA 55 run. If successful, RACS will:

    1. Contact the Deposit Activity function to deposit the payment (a separate deposit ticket for Tax Class 2 will be completed)

    2. Select the files to be processed and edit their Trans Date (IRS Received Date of payment) by executing screen program TDA56.GO.

      Note:

      @ADD 19BSC*TDA56.GO, use appropriate campus qualifier.

    3. Open an ITAMS ticket to run the TDA 56.

  5. If the TDA 55 run is unsuccessful due to an invalid or unusable input file, RACS will notify SITLP Coordinator, and contact will be made with the State to inform them of the problem. The coordinator will work with the State to obtain a corrected input file to match the existing check.

  6. The date on the deposit ticket and TDA 55 report must match.

  7. The Trace ID number will be generated by the running of TDA56. After the TDA55 has been verified by RACS, monitor Control D for the TDA56 and the Trace ID number the following morning.

  8. Process SITLP payments through Manual Deposit using Transaction Code 670 and DPC 20.

Cash Clerks Function

  1. Campuses occasionally receive cash through the mail. Cash can be received with other remittances, such as money orders, checks, etc., in ACS (Automated Collection System) mail, from Lockbox sites (less than $1) or in the form of savings bonds. Savings bonds are to be returned to the taxpayers by certified mail thru Payment Perfection. Savings bonds received from international taxpayers, will have to be returned by registered mail.

    Note:

    Whenever cash is received, Form 809 must be issued to the taxpayer. All employees and their managers with Form 809 books assigned to them must follow guidelines for Form 809 internal controls, under the Field Office Remittance Processing program. See IRM 3.8.47, Manual Deposit Process for Field Offices.

  2. As mail is extracted, any cash that is found will be counted, listed on a Form 4287 and secured in a safe, vault or locked container until the teller/cash clerk retrieves it for processing.

    Note:

    If foreign cash is received, follow the procedures in IRM 3.8.45.15.1 for conversion to U.S. equivalent. After conversion is completed, send Form 809 to the taxpayer for the converted USE amount.

  3. Daily, the teller/cash clerk will retrieve the cash from the safe, vault or locked container in the Extraction Function for verifying and preparing the cash for the deposit. During the verification process, there will always be two employees counting and verifying the cash that was received through Extraction. For cash receipts over $1 (one dollar):

    1. Remove cash from the safe, vault or locked container.

    2. Keep original Form 4287 with cash package and leave copy with Extraction clerk.

    3. Verify, review and balance Form 4287. Verify remittance, cash, taxpayer information and returns/documents to Form 4287 with designated extraction clerk.

    4. Notate any changes or corrections to Form 4287 in green and initial both copies of Form 4287.

    5. Open envelopes and verify contents to Form 4287.

    6. Verify money amount listed on Form 4287 by preparing an adding machine tape.

    7. Add cash only and edit total in green on Form 4287 column G after last taxpayer entry.

    8. Add checks and money orders and edit total in green on Form 4287 column G after cash total.

    9. Add cash, checks and money orders, and edit grand total in green on Form 4287 below check and money order total.

    10. Teller/cash clerk should initial next to grand total of cash deposit.

  4. If no tax return, source document or document incomplete, research IDRS for application of payment.

    1. Date stamp returns/documents with received date.

    2. Edit in green, the money amount on forms or notices.

    3. If correspondence is attached indicating "Receive and Deposit" , date stamp the correspondence and route to appropriate area.

    4. Prepare tax returns/documents for processing.

  5. After verifying and balancing the cash to the Form 4287, prepare Form 2679, Teller's Daily Balance and Reconciliation.

    1. Count coins and currency by denominations.

    2. Verify that bills are legitimate with a counterfeit marker.

    3. Complete Form 2679 in duplicate.

    4. Run a calculator tape from Form 2679.

    5. Enter cash amounts only, start with pennies.

    6. Date Stamp today's date.

    7. Take only cash to credit union and convert cash to money order.

    8. Complete money order payable to United States Treasury.

    9. Staple stub/receipt of money order to shuttle tape.

    Note:

    If your campus does not have an on site credit union, cash may be converted weekly if it is less than $5,000.00. If your campus has an on site credit union but has a minimum amount they will convert to a money order, the cash may also be converted weekly or as soon as the minimum is reached.

  6. Complete Form 809, Receipt for Payment of Taxes, in received date order, for each taxpayer for whom cash was received.

    1. Tear out Parts 1 and 3 of Form 809 and forward with remittance to the Field Office Payment Processing Unit for internal control, verification of funds and processing.

    2. Part 2 will be mailed to the taxpayer, if the taxpayers identity is known. If the taxpayer identity is not known, parts 2 and 3 will be retained in the Field Office Payment Processing Unit audit files. Part 4 will remain in the receipt book.

    3. Add remittance amount from receipts on adding machine and compare with line 12 of Form 2679.

    4. Annotate used receipt numbers of Form 809 on Form 2679.

    5. Errors on Form 809 will result in voiding and making new Form 809. Parts 1 and 2 of voided Form 809 are enclosed with cash package.

  7. Prepare a cash folder and include the following items.

    1. Calculator tape and stub/receipt of money order.

    2. Parts 1 and 2 of Form 809. (Enclose VOIDED receipts)

    3. Original and stub/receipt of Form 2679.

    4. Returns/documents prepared for manual processing.

    5. Balanced Form 4287.

  8. For processing cash received under $1 (one dollar) follow the procedures for processing cash over $1 with the following exceptions.

    1. If the taxpayer account cannot be determined, complete Form 2007 in duplicate and date stamp for deposit in the 6540 account, Small Debits and Credits Cleared.

    2. Use only one Form 809 for total remittance deposited in under a dollar cash folder if taxpayer(s) cannot be identified.

    3. Write Form 809 receipt number on Form 2679.

    4. When applicable get separate money order and make payable to United States Treasury.

    5. Put in cash folder:
      • Parts 1 and 2 of Form 809. (Enclose VOIDED receipt if necessary)
      • Calculator tape and stub/receipt of money order.
      • Original and copy of Form 2679.
      • Original and copy of Form 2007.
      • Money order and balanced Form 4287.

    6. Cash package(s) (over and under $1) should be reviewed and balanced by manager or lead before processing.

    7. File carbon copy of Form 2679 when returned from Deposit Function the next day.

    8. Sign both copies of Form 2679, retain and file original and return carbon copy to teller/cash clerk.

  9. If there is an overage, follow procedures for Discovered Remittances in IRM 3.8.46, Discovered Remittance.

  10. For any Losses and Shortages, refer to Reporting Responsibilities, IRM 3.8.45.1.4, and prepare Form 783.

    1. Enter the name of the teller/cash clerk name.

    2. List remittances.

    3. List Form 809 voucher numbers.

  11. Forward tax returns/documents to Batching function for processing.

    Note:

    If returns/Documents processing is centralized, forward to appropriate Campuses.

  12. Prior to mailing, Form 809s must be reviewed and balanced by Manager or designee. Each receipt for cash remittance, received by mail, must include Notice 428, Thank you for your cash remittance.

  13. Place Form 809, Part 2, in window envelope with Notice 428 and return to taxpayer.

Mutilated Currency Handling

  1. Financial institutions may refuse to accept currency if it is in any of the following conditions:

    1. Torn into numerous pieces.

    2. Smeared with unknown substances.

    3. Old or worn.

    4. Disintegrating.

  2. When mutilated currency is received or discovered, try to retrieve as many of the parts as possible, with the least handling. If your financial institution rejects the mutilated currency it must then be sent to the Bureau of Engraving and Printing to be replaced. Follow the below procedures:

    1. Prepare a suspense file with the source document and Form 3210.

    2. Annotate the source document with the IRS received date and hold in suspense.

    3. Prepare Form 3210, Document Transmittal.

    4. In the remarks section of Form 3210, note MUTILATED CURRENCY.

    5. In the body of the 3210 transmittal, write the number of bills and explain how the currency became mutilated, if known, and estimate the value of the currency. For example, three $20.00 bills, estimated value $60.00; torn accidentally.

  3. Package document transmittal with damaged currency, and the source document, if available, and send thru certified mail, return receipt requested to the address below. If the mutilated currency is in large quantities, insure the contents.


    Bureau of Engraving and Printing
    MCD/OFM, BEPA
    Room 344A
    P.O. Box 37048
    Washington, DC 20013

  4. For Washington area offices, mutilated currency can be hand delivered to the Bureau of Engraving and Printing at 14th and C Streets, SW in Washington, DC. Hours for acceptance are 8 a.m. - 2 p.m., Monday through Friday. The use of overnight mailing services for Washington area offices is not appropriate.

  5. The Department of Treasury will issue a Treasury check in the amount, if any, of the value of the currency determined to be redeemable by the Bureau of Engraving and Printing. Allow 12 weeks for processing. When the check arrives, deposit the funds in accordance with IRM 3.8.45.4 guidelines. To check on the status of a shipment, call ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  6. Shipping Large Quantities or Badly Damaged Mutilated Currency

    1. Do not disturb fragments.

    2. If brittle, pack in cotton.

    3. If mutilated in a container, send the entire container if feasible. For example, if a Fed Ex package of cash is damaged, send the entire package with all the pieces.

    4. If the currency is flat, do not roll.

Mutilated Coin Handling

  1. Mutilated coins, (not foreign, silver or gold) should be handled using the following procedures:

    1. Each group of coins must weigh one pound or more.

    2. Dimes, quarters, half dollars, and dollars, other than gold or Susan B. Anthony, may be combined.

    3. Pennies, nickels, gold and Susan B. Anthony dollars must be sent separately.

  2. Prepare a Form 3210, Document Transmittal and send the mutilated coins to:

    United States Mint
    P.O. Box 400
    Philadelphia, PA 19105
    Attn: Coin Redemption Section
    Telephone: 215-408-0205

Remittance Received for the Former Regional Commissioners Office

  1. Regional commissioners no longer exist. If a remittance is received in a Submission Processing Site for credit to the Regional Commissioner, forward the remittance on transmittal Form 3210, Document Transmittal thru overnight traceable mail to the following address:

    Internal Revenue Service
    Beckley Finance Center
    110 N Heber St
    Beckley, WV 25801

  2. Remittances to be forwarded to the Beckley Finance Center:

    • Jury Fees Paid to IRS Employees

    • Refund of Registration and Filing Fees

    • Income from Acquired Property

    • Wagering Winnings

    • Interest Earned on Recoverable Funds

Manual Deposit General

  1. Manual Deposit has two primary functions.

    1. Anything that cannot be processed through ISRP should be sent to Manual Deposit.

    2. Preparation and deposit of items that ARE NOT processable through ISRP, such as unidentified deposits, SITLP, foreign remittances, Repayment of Informant Reward, redeposits, should be sent to Manual Deposit.

  2. Source documents must be sorted according to MFT or type of form.

  3. Non-ISRP Tax returns/documents and remittances processed through Manual Deposit are normally received from the Payment Perfection function.

    1. Returns/documents are tagged indicating the various sorts and types.

    2. Each batch consists of 100 or fewer payments.

    Note:

    Each payment must have a Trace ID number. See instructions in IRM 3.8.45.2.3.

  4. Information on Form 3539, Block Number Control Sheet, determines appropriate DLN to assign to blocks of payments. A BMF DLN Reference number is required to pull the correct BBTS off-line DLN. The BMF DLN Reference number must be created by the Campus Production Monitor if the appropriate DLN in not available on BBTS. The BBTS Administrative Job Aid (ELMS 19058) provides the guidelines for the Production monitor to accomplish this. Once the BMF DLN reference number is provided, Manual Deposit can create an offline DLN in BBTS.

    Note:

    For automated processing procedures refer to IRM 3.10.5, Batch/Block Tracking System (BBTS).

    1. The first and last number of each block must be stamped on Form 3539 if the number is not generated from BBTS.

    2. Always check block number in the ending column and use the next block number.

    3. Stamp the DLN in the Block DLN box on Form 813, Document Register.

  5. Detach remittances attached to tax return or document. Stamp the DLN on top portion of first remittance.

  6. Stamp the DLN on each document in the upper right hand corner. When serial number 50 is stamped on the tax returns or documents, also stamp corresponding remittance. Place both upside down in the block.

  7. If possible, do not place identical TINs and tax periods back to back in block of documents.

  8. Do not prepare blocks for more than $99,999,999.99.

Remittance Listing

  1. The NCR Encoder is used for encoding and endorsing the remittances not processed through ISRP and the NDP600 Transport. For initial processing:

    1. Set endorsement data to correspond with deposit data.

    2. Verify sequence number, set on encoder to the one shown on Form 4221, Remittance Control Number Record.

    3. Enter encoder number and DLN of each block on encoder tape. Process remittances. Sub-total after fiftieth check, and total after the last check. Initial the encoder tape.

    4. List block sequence number and related block DLN on Form 4221.

    5. Attach encoder tapes to remittances.

  2. Remittances processed for Courtesy Deposit must be endorsed with the agency location code of office receiving credit.

Tax Return or Document Listing (Manual Deposit)

  1. Each block of numbered tax returns or documents must have a Form 813, Document Register, listing coded money from each document.

  2. At the bottom of the 813, list the total secondary amounts of all documents in brackets and enter "dr" to the left of total. Secondary transaction codes and amounts are shown on Form 3244, to the left of the primary transaction data. For full paid, Letter 313C, re-enter total for the secondary amount.

  3. When blocks contain more than 50 items, subtotal, after listing amount on Line 49 of Form 813.

  4. Total on appropriate line, after listing all returns/documents.

  5. When there are less than 100 items in the block, circle the serial number following the last entry on Form 813.

  6. Enter deposit date in "Date" box for Form 813.

  7. Place a check mark in the appropriate box of the Form 813 using the following information.

    1. "Estimated" box-current year Form 1040ES payments.

    2. "Perfect" or "Imperfect" box.

Balancing (Manual Deposit)

  1. In order to maintain the integrity of revenue receipt processing, one employee may perform two of three processes. The balancing function must be one of two processes. The three processes are Listing, Balancing and Recapitulation.

  2. Compare the totals on the document and remittance register (Form 813 and encode tape). Compare each entry of both registers against tax returns or documents to resolve out-of-balance blocks. (The correct remittance amount is the determining factor.) If the remittances were incorrectly encoded, use the following procedures to correct the encoding:

    1. Line through entry and enter corrected amount on tape.

    2. Tape over MICR amount on check and re-encode.

    3. Place check on top of block.

  3. If the tax return or document was incorrectly listed, reinput the correct amount.

  4. If the tax return or document was incorrectly coded or edited, use the following instructions to correct the tax return or document.

    1. Draw a green circle around the erroneous amount.

    2. Enter correct amount and green rocker near balance due line.

  5. Ensure the tax return or documents are blocked correctly by assigned DLN.

    1. Ensure all tax returns or documents are included in the block.

    2. Ensure all mis-blocked documents and accompanying remittances have been removed.

  6. When blocks are in balance, initial encoding tape and generate Form 813A.

Recapitulation

  1. Sort blocks of documents and remittances by tax class.

  2. BBTS will generate Form 813A, but the deposit ticket number will need to be written on the Form 813A.

  3. List each block total of checks on Form 784, Recapitulation of Remittances, and enter grand total in Total Box. If not pre-printed, enter Campuses, name of director, name of bank, deposit date, and assigned deposit ticket number.

  4. Compare the totals shown on Form 813A and Form 784.

    1. If equal, prepare deposit for release.

    2. If not equal, compare Form 784 and Form 813A, item by item, and correct discrepancies.

    3. Make necessary corrections to documents, remittances, appropriate block, and/or recap listing.

  5. Final preparation for delivery to depositary.

    1. Enter generated (or manually adjusted) deposit tax class totals on one deposit ticket.

    2. Prepare separate deposit tickets for non-revenue receipts and courtesy deposits.

    3. The number of items to be included with a single deposit ticket will be limited only if the depositary requested a limit and it is defined in their present contract.

    4. If deposit ticket and Form 813A totals balance, enter deposit ticket number in the box labeled "Deposit Ticket No." on the bottom right-hand corner of Form 813A. See Exhibit 3.8.45-6.

Distribution of Completed Work

  1. Accounting Operations receives the following:

    1. Copy of Form 813A

    2. Part 1 of Form 784

    3. Second copy of Encoding Tapes

    4. Copy of OTCnet 215A Deposit Ticket

    5. Copies of Form 813 listed on Form 813A

  2. Depositary Bank receives the following:

    1. Original Encoding Tapes

    2. Copy of OTCnet 215A, Deposit Ticket

    3. Documents required from the depository bank such as Batch Tickets.

  3. Deposit Activity retains the following:

    1. File copy of Form 813A and Form 813

    2. Part 3 of Form 784

    3. Agency copy of OTCnet 215A Deposit Ticket

    4. Photocopy of Check for Manual Deposits. Checks processed through ISRP are scanned by the Transports and downloaded to RTR.

    5. Payment Posting Voucher or document used in lieu of Payment Posting Voucher (photocopy of first page of return, IDRS print, etc.) for Manual Deposits. Destroy after five days when processed through ISRP.

      Note:

      Retain package in a locked cabinet for three years following the current processing year.

Specific Campuses Processing

  1. Listed below are instructions for Specific Campuses Processing.

Instructions for Excess FICA (Processed at ATSPC)

  1. Excess Federal Insurance Contribution Act (FICA) Contributions remitted by the State of Florida should be received with transmittal letter stating: "These funds are to be deposited as excess collections in accordance with instructions from Wage and Investment Division SE:W:CAS:SP:ATP:AS."

  2. Process the remittance as an excess collection, prepare Form 3244. Annotate "non-refundable" in the remarks section.

Instructions for Form 8820 and Territory Payments (Processed at AUSPC)

  1. Remittances received with Form 8820, Return by Corporation that has a Change in Corporate Control, or Substantial Change in Capital Structure, are processed at the Austin Campus only.

  2. Do not process Form 8820, instead use Form 3244 as a source document for ISRP processing, using the following information:

    1. MFT 13

    2. TC 640

    3. Tax Period on the Form 8820

    4. Annotate the payment amount in green on Form 8820 and route to Customer Service Building.

  3. Prepare a Form 3244 for remittances received without Form 8820, for ISRP processing using the following information:

    1. MFT 13

    2. TC 640

    3. Tax Period

    4. Annotate in remarks "Payment for Form 8820" and route to Customer Service Building.

  4. Virgin Islands Estimated Payments. If a Form 1040 is received from a taxpayer in the Virgin Islands indicating an ES payment was made to the Virgin Islands government, deposit the remittance. Send the return to Accounts Management function.

  5. Listings for Form 1040NR, U.S. Nonresident Alien Income Tax Return. Estimated Tax Payments will be received with 25 accounts to a sheet. Use listing as source document.

    1. TC 430.

    2. Prepare deposit.

  6. The Bank of England will telex Credit of Withholding Taxes to the Austin Campus.

    1. The Federal Reserve Bank of New York will prepare SF 215A, Deposit Ticket, and forward the memorandum and agency copies to AUSPC.

    2. Upon receipt, prepare a Foreign Withholding Posting document and process.

  7. Electronic Fund Transfer (EFT) is a transfer of funds from the account of a taxpayer by the taxpayer's commercial bank thru the Federal Reserve Bank of New York. The Federal Reserve Bank of New York then transfers these funds to the Treasury thru the Fedwire Deposit System (FDS). The Treasury then transmits an EFT Support Listing and deposit ticket to the Austin Campus for processing. The EFT must include the Agency Location Code and tax return identification.

Instructions for Form 941SS, Form 1041QFT and Form 2290 (Processed at CSPC)

  1. The Northern Marianna Islands (NMI) system merged into the U.S. system under PL94-241 in January 1, 1987. The employers will file Form 941SS instead of Form 941 NMI. The Form 941NMI was eliminated for 1987 and subsequent years.

    1. If returns for tax periods ending after 8612 are received on Form 941 NMI, convert to Form 941SS and follow the Form 941SS instructions. However, returns for tax periods 8612 and prior must remain on Form 941 NMI, and the procedures for Form 941 NMI instructions must be followed.

    2. Form 941NMI, Northern Marianna Islands (NMI) payments will be processed as NMF.

    3. Enter initials "NMI" at the top of each Form 813 and deposit ticket.

    4. Route returns to Code and Edit function and Sub/Pays to Accounting.

    5. If a multiple is received which includes any other "NMI" form, apply entire payment to Form 941 account. Transship other forms to IRS in Saipan noting payment applied to Form 941 NMI at Cincinnati Campus (CSPC) and refund will be issued to taxpayer.

  2. Form 1041QFT must be processed at CSPC.

    1. When Form 1041QFT is received with a remittance at a Campus other than CSPC, the Extraction Unit will forward the return and remittance to the Deposit Unit. The Deposit Unit will contact Entity when these returns with remittances are received.

    2. Do not separate the return from the remittance. Entity must process the return and remittance in the Deposit Unit on the day of receipt. The Deposit Unit must deposit the remittance on the same day it was processed by Entity or no later than the next business day.

    3. If Form 1041QFT is received without a remittance, transship to CSPC.

      Note:

      These are large dollar remittances, they must be processed expeditiously.

  3. Form 2290 with Form 809 receipt from the field offices will be sent to the servicing teller unit for that function, then transshipped to CSPC. See processing instructions in IRM 3.8.47.5.5.4, Procedures for Form 2290 Heavy Vehicle Use Tax Return with Receipted Form 809 (for sites other than Cincinnati) .

Form 990BL, Form 1042, and Territory payments (Processed at OSPC)

  1. Form 990BL, Information and Initial Excise Tax for Black Lung Benefit Trusts and Certain Related Persons, and Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction, are due on or before the 15th day of the fifth month following the close of the taxable year.

  2. Form 990BL, and Form 6069 will be processed as Non-Master File. If a remittance is received for Form 990BL, process the payment using the following procedure.

    1. Prepare Form 3244 or equivalent with TC 670/TC 570 and MFT 56.

    2. Write remittance amount in green.

    3. Process NMF.

    4. Edit remittance amount on Form 990BL and forward to appropriate function.

  3. Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons to be paid at Source (Chapter 3, Internal Revenue Code) is processed only at OSPC.

    1. Process remittances received for advance payments, FTD payments or delinquencies as BMF subsequent payments.

    2. Prepare Form 3244 for remittances received with correspondence in lieu of a return or use correspondence as source document. If further action is needed, annotate the correspondence with the amount and date of payment and forward to Ogden Accounts Management.

    3. The following table should be used to determine how to process payments received with Form 1042S and/or 1042T:

      IF THEN
      1) Payment matches amount(s) on Form(s) 1042S/1042T Apply payment as a subsequent payment (TC 670) using the Withholding Agent's EIN, MFT 12, and the year ending of the Form 1042S/1042T (YYYY12).
      2) Payment does NOT match amount(s) on Form(s) 1042S/1042T Research Withholding Agent's EIN on IDRS for a balance due.
      3) IDRS research of the Withholding Agent’s EIN reveals a balance due Apply payment as a subsequent payment (TC 670) to the tax period and MFT with the balance due.
      4) IDRS research of the Withholding Agent’s EIN reveals NO balance due Apply payment as a subsequent payment (TC 670) using the Withholding Agent's EIN, MFT 12, and the year ending of the Form 1042S/1042T (YYYY12).
  4. Corporation Income Tax Returns With Special Credits Number all Form 1120 mentioning Section 936 credit (relating to Puerto Rico and U.S. Possessions) or Section 931 exclusion, with the regular DLN for D.O. 98 AC (IN).

  5. Treaty Bond remittance receipts can be received without documentation for payment application, from foreign governments in payment for additional Form 1042 withholding and should be processed using the following procedures.

    1. Complete Form 2221 in triplicate.

    2. Deposit to Account Symbol 20-3220 and SC ALC.

    3. Prepare adding machine tape of the remittance(s).

    4. Prepare DT with SC ALC and address.

    5. Identify Miscellaneous Revenue Receipts on encoding tape.

    6. Submit the appropriate copies of deposit ticket and Form 2221 to Accounting Operations with the accounting package.

Form 8621A, Return by a Shareholder Making Certain Late Elections to End Treatment as a Passive Foreign Investment Company (Ogden Only)
  1. Treasury Regulation (REG-133446-03, TD 9231 and TD 9232) provides an opportunity for U.S. taxpayers who are shareholders in Passive Foreign Investment Companies (PFICs) to make an election that will include a one-time payment to afford retroactive relief and prevent future tax liability. Taxpayers will file Form 8621A to elect treatment under the new Treasury Regulation. Once the campus accepts the payment and Large Business and International (LB&I) reviews the request for retroactive relief, LB&I may have to notify the taxpayer of any additional amounts of interest due.

  2. PFIC payments are not a payment of tax and there is no associated DLN. Therefore, a unique PFIC number will be assigned. The PFIC number is a seven or eight digit number assigned to each "PFIC account" and will be used to associate all payments or inquiries related to that specific shareholder and PFIC company. The Deposit function will receive with remit and non remit Form 8621As. A PFIC number must be assigned to Form 8621A regardless of whether or not a remittance is included. The PFIC number format is as follows:

    Processing Year Sequence Number Duplicate Indicator
    11 (Calendar Year 2012) 00026 -2
    10 (Calendar Year 2011) 00026 -2
  3. Assign PFIC number:

    1. Review log sheet to ensure PFIC number has not previously been assigned, i.e., partial payment (See example below - PFIC Number Log Sheet).

      A B C D E F G H I
      PFIC Control # Ind Recd Date Dep Date Shareholder Name Control Shareholder TIN Company Name Company TIN Remittance Amount
      1000001 01/04/10 NA DOE 99–9999999 International 99–9999999 $0.00
      1000002 01/06/10 01/06/10 BEAR 99–9999999 Global Sys $68,000.00
      1000002 2 02/08/10 02/08/10 BEAR 99–9999999 Global Sys $25,000.00
      1000004 01/06/10 NA DUCK 99–9999999 XYZ Co 99–9999999 $0.00
      1000005 01/13/10 01/13/10 WOLF 99–9999999 Data Inc 99–9999999 $600,500.00
      1000006 02/22/10 NA BASS 99–9999999 Capitol LLC NA $0.00
      1000007 03/08/10 03/09/10 HAWK 99–9999999 Quality Scvs 99–9999999 $10,000.00
      1000008
      1000009
      1000010
      1000011
      1000012
      1000013
      1000014
      1000015
      1000016
      1000017
    2. Review columns E, F, G, and H for matching shareholder and company name.

    3. If PFIC number for the same shareholder and company exists, use that number followed by a hyphen and the number 2 or subsequent.

      Note:

      A shareholder can hold shares in more than one company. Conversely, a company can have more than one shareholder. The shareholder name and company name must both match a previously assigned PFIC# (see above table).

  4. If no PFIC number is found, assign the next consecutive unassigned number from the log sheet.

  5. Fill out columns A through I on the PFIC log sheet.

  6. Stamp or write the PFIC number on Form 8621-A (or other documentation) and remittance. "Other documentation" may include correspondence, IRS letter, etc.

  7. Photocopy the top portion of Form 8621-A.

  8. Photocopy log sheet (in-lieu-of Form 1963 or Form 2221).

  9. Manually deposit payment(s) in the 4626 account using accounting symbol 20-3220.

  10. Prepare deposit ticket.

  11. Include Deposit Ticket, log sheet photocopy and Form 8621-A photocopy in accounting package.

  12. Photocopy check and attach to original Form 8621-A (or other documentation).

  13. Send photocopy of check and original Form 8621-A to:

    Internal Revenue Service
    Attn: Fred Perla
    LB&I: IBC: DFO East: Territory 1: Team 6
    110 West 44th Street, 8th Floor
    New York, NY 10036

Automated Non-Master File General

  1. Automated Non-Master File (ANMF) System, is the on-line research system for NMF payments.

  2. System security requires a login and password for entry into the system. Both the login and password will be issued to employees after Form 5081 IDRS, Security Files Change Notification, is submitted and approved through the Campus clearance process.

  3. The ANMF system is for research only and will not allow input of NMF payments. Follow instructions in IRM 3.8.45.5.2, Out of Area Non-Master File (NMF) (Transshipment of NMF Returns/Documents), for processing NMF payments.

Special Types of Deposits

  1. This subsection provides instructions for special types of deposits and processing instructions.

Income from Acquired Property

  1. Income received from acquired property will be forwarded to the Campus via Form 2433, Part 7B, Notice of Seizure, or other posting document containing the following information:

    1. Name of person from whom the income was received.

    2. Nature of income, such as rental, dividends, etc.

    3. Brief description of property, such as "Real property-building located at (address)," "Personal Property-General Motors Stock," etc.

    4. Period covered by the payment if applicable.

    5. Name of taxpayer from whom the property was seized and sold.

    6. Amount of remittance.

    7. A statement that the remittance should be deposited as a courtesy deposit.

Proceeds from the Sale of Seized Property

  1. Collection employees will forward proceeds from the sale of seized property to the Campus with Part 7B of Form 2433, Notice of Seizure, as the posting document for proceeds from the sale of seized property. Cash must be converted to check or money order (within 24 hours) prior to transshipping to the Campus.

Money Seized by TIGTA Personnel

  1. Money seized by a case Inspector will be transshipped to the Campuses for deposit with two copies of a memorandum to the Campuses Director from the regional inspector, as required. Cash must be converted prior to being transshipped. The memorandum will contain instructions for depositing the remittance and distributing the memorandum copy of the deposit ticket. Remittance processors will:

    • Receive remittance.

    • Prepare a Form 3244 and annotate in the remarks section "non-revenue" and the amount received.

    • Date stamp "received" on both copies of the memorandum.

    • Attach the Form 3244 receipt to one copy of the memorandum and return it to the case inspector.

    • Deposit the money as a courtesy deposit for the National Office showing ALC 20-04-0001 in Block (3) of OTCnet SF 215A deposit ticket and Account 20-1099 in the space to the left of Tax Class 9, as instructed in the transmittal memorandum. Enter in item (9) the following:

      Office of the National Director for Performance and Investment
      IG:MS:PI
      1111 Constitution Avenue, N.W. Room 6410
      Washington DC 20224

    • Send the memorandum copy of the OTCnet SF 215A deposit ticket to the Regional Inspector. (Within three days after receipt, the case inspector will forward the memorandum copy of the deposit ticket to the Administrative Office, Chief Inspector, National Office, for subsequent transmittal to the Office of the National Director for Performance and Investment).

    • Prepare Form 2221, Schedule of Collections, in duplicate. Send the original to the Office of the National Director for Performance and Investment at the address listed above.

    • Retain OTCnet SF 215A deposit ticket (agency copy), Form 2221 (copy) and copy of the transmittal memorandum.

Bankruptcy Trustee and Other Insolvency Payments

  1. Bankruptcy trustee payments are processed by Centralized Insolvency Operation. All trustees have been requested to send all Bankruptcy Chapter 7 and 13 Trustee payments to the Centralized Insolvency Office (CIO) address as follows:


    Internal Revenue Service
    Centralized Insolvency Operation
    5-Q30.133
    2970 Market St.
    Philadelphia, PA 19104

  2. Misdirected trustee payments would most likely be sent to a field office. If misdirected payments are received in the Submission Processing site, send via overnight traceable method to CIO at the above address. A Form 3210, Document Transmittal must accompany the checks. The Form 3210 must list each payment by the check number and the trustees last name (See IRM 5.9.11.2(9), Field Insolvency Mail).

  3. Payments received after bankruptcy discharge (known as post petition payments) will be sent to Cincinnati or Ogden by field Collection personnel. Process these payments through ISRP.

Post-Dated Checks Accepted by Revenue Officers

  1. On an exception basis, with approval of local management, a revenue officer may accept a post-dated check from a taxpayer. If a revenue officer accepts a post-dated check, the officer must not remit the check until the date on the check, as agreed between the officer and the taxpayer. If an officer remits a post-dated check in error, issue Form 5919 Teller's Error Advice. An automated Form 5919 is issued to the manager. It is a non-negotiable remittance. Return the check with the response required for a Form 5919.

Exceptions to Payment Processing

  1. On rare occasions, payments are mistakenly routed to Submission Processing campuses that are made payable to Internal Revenue Service but are not for payment of taxes, deposits or fees. Both the payment and document should be sent to the appropriate address for processing.

    1. Date stamp the document.

    2. Forward the payment and document within 24 hours of discovery to the address listed on the form.

  2. Examples of documents received by campuses that may not be processed by a campus are:

    1. Form 5434-A , Application for Renewal of Enrollment, for actuaries. Mail these forms and remittances within 24 hours of discovery to the address instructed on the form.

    2. FMS-133, Direct Deposit Reclamation, should be mailed to:

      U.S. Department of the Treasury
      Bureau of the Fiscal Service
      Philadelphia Financial Center
      P.O. Box 51321
      Philadelphia PA 19115-6321

    3. Form 8802, Application for U.S. Certification. IRS will charge a user fee for all Form 8802. Taxpayers are instructed to mail Form 8802 and their payment to the following lockbox address for processing:

      Internal Revenue Service
      P.O. Box 42530
      Philadelphia, PA 19101-2530

    4. If a campus should receive a Form 8802 with a remittance, transship the Form and remittance via overnight traceable method to the following address:

      Citibank
      ATTN: Samra Jameel
      500 White Clay Center Dr
      Newark, DE 19711
      302-323-3168

    5. Bankruptcy trustee payments are processed by Centralized Insolvency Operations. See IRM 3.8.45.28.4.

    6. If a campus receives a remittance with:
      Form W-12 - IRS PTIN Application, or
      Form 8945 - PTIN Supplemental Application for U.S. Citizens Without a Social Security Number Due to Conscientious Religious Objection or
      Form 8946 - PTIN Supplemental Application for Foreign Persons Without a Social Security Number, transship the Form(s), Remittance(s) and Form 3210, including the original mailing container, using OVERNIGHT Traceable Method to:

      IRS Tax Pro PTIN Processing Center
      104 Brookridge Drive Suite 5000
      Waterloo, IA 50702–5702

      Note:

      If the remittance is received as a discovered remittance with a Form 4287, Record of Discovered Remittance, DO NOT send the Form 4287 with the transshipment. Part 1 (White Copy) of Form 4287 (Redirect to Originator after Receipt and Control) should be initialed verifying receipt and returned to the originator.

Form 8282, Donee Information Form

  1. If Form 8282 or Form 8282B is received with remittance, research on IDRS to determine if the "civil penalty" has posted. This is identified with a (TC 240 with a reference code).

  2. If the Penalty has not been assessed, apply the remittance to master file with a TC 640 (Advanced Payment of Deficiency) and MFT 13 (for BMF) or MFT 55 (for IMF).

  3. If the penalty has been assessed process the payment to master file with a TC 670 and MFT 13 (for BMF) or MFT 55 (for IMF).

Form 12993, Payment for Installment Agreement User Fee Not Accepted by Bank

  1. When a payment is received with Form 12993, research the MFT 55 (IMF) or MFT 13 (BMF) module to determine where the original payment posted. (Form 12993 is sent to a taxpayer by Accounting only if MFT 55 (IMF) or MFT 13 (BMF) was on the module.)

  2. If the payment is for an installment agreement fee and TC 694/TC 695 is on the module, apply the payment to that module. If the payment is greater than the original payment of the installment agreement fee, research IDRS and apply the remaining portion of the payment accordingly. SeeIRM 5.19.1.5.4.6, Installment Agreement Payment Methods and User Fees (UF) Overview.

  3. If Form 12993 is received in error and there is no MFT 55 (IMF) or MFT 13 (BMF), then forward to Compliance Services Collection Operations (CSCO) for determination of payment application. Use the following link on SERP to direct to the correct site based on BOD code and state of taxpayer, http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/01_cplg_toc.htm.

  4. If correspondence is attached requesting abatement of a bad check penalty, process the payment and route correspondence to local Campus Accounting for consideration of the penalty abatement. Form 12993 does not require routing to Accounting unless a penalty abatement is requested.

  5. Follow local procedures for handling Form 12993 after payment processing.

Form 2220, Underpayment of Estimated Income Tax by Corporations

  1. Form 2220, Underpayment of Estimated Income Tax by Corporations, are processed through ISRP using:

    1. TC 670

    2. MFT 02

Form 944, Employer's ANNUAL Federal Tax Return

  1. Form 944, Employer's ANNUAL Federal Tax Return, is processed through ISRP using:

    1. TC 610

    2. MFT 14

Form 8453-F, U.S. Estate or Trust Income Tax Declaration and Signature for Electronic Filing (Ogden SPC Only)

  1. When Form 8453-F is received with remittance, process through ISRP as follows:

    1. TC 670

    2. MFT 05

    Note:

    Beginning January 1, 2011, payments for Form 8453-F may be received with a Form 1041-V. If the Form 1041-V is received with a Form 8453-F, utilize the Form 1041-V as the payment voucher and route the Form 8453-F to Batching OSPC, STOP 6054. Process Form 1041-V payments with TC 610 and MFT 05.

Department of Defense National Security Checks (KCSPC only)

  1. These checks are received in a sealed envelope by the KCSPC Compliance Director from the Department of Defense. The sealed envelope is hand carried to the Accounting Operation.

  2. Accounting will prepare a Form 3244 for each check. "6400 account" will be annotated in the remarks field of each Form 3244.

  3. Accounting will hand carry the checks and Form 3244s to the Receipt and Control Operation.

  4. Deposit will prepare the OTCnet 215A Deposit Ticket and Form 2221 with appropriation number 20-3220.

  5. The OTCnet 215A deposit ticket and Form 2221 will be hand carried from Receipt and Control to Accounting for journalization.

    Note:

    These are security sensitive checks. In the event they need to be locked up, they must be in a secured cabinet.

Repayment of the First Time Homebuyer Credit

  1. Repayment of the First Time Homebuyers Credit should be indicated on Form 5405 with the amount of credit to be repaid as additional tax and filed with the taxpayers tax return. But whenever a remittance is received with a Form 5405 or documentation stating it is for repayment of the First Time Homebuyer Credit, process that payment with the following:

    1. TC 670/TC 570

    2. MFT 30

    3. Current tax period (or per taxpayer intent).

    4. Route Form 5405 and/or documentation to Submission Processing (ICT/CIS).

      Exception:

      If Form 5405 is attached to a Form 1040X, route to the 1040X Unit in Submission Processing.

Special Handling to Hold Payments

  1. Some Forms, Letters and Notices require the input of a TC 570 to ensure the payment is not refunded before the case is resolved.

  2. Input a TC 670/TC 570 for the following:

    1. Letter 3219C, Statutory Notice of Deficiency

    2. Letter 4676C, Special Project/Payment Recovery Letter

    3. Letter 4800C, Questionable Credit 30 Day Contact Letter

    4. Form 14402, Internal Revenue Code (IRC) Section 6702(d) Frivolous Tax Submissions Penalty Reduction

Voluntary Classification Settlement Program (Cincinnati Submission Processing Campus)

  1. The Voluntary Classification Settlement Program (VCSP) is a voluntary program that provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes in future tax periods with partial relief from federal employment taxes. Before a VCSP agreement is finalized by the Service, the taxpayer is required to submit an agreed upon payment to the Centralized Employment Tax Operations (CETO) in Detroit. Upon receipt of the payment, the Tax Examiner will prepare Form 3244-A with specific processing instructions. The Form 3244-A and attached check will be submitted via Form 3210 to be processed. Form 3244-A will contain remarks identifying the payment as a Voluntary Classification Settlement Program (VCSP) payment that should be deposited as a debit to the 2320 account and a credit to the 6400 account under appropriation 20-3220.

    Note:

    If a check with Form 8952 is received in Receipt and Control directly from the taxpayer, stamp the check “non-negotiable” and route the check and Form 8952 to the CETO Unit at Detroit Federal Building, 985 Michigan Ave., 4th Floor CETO, Detroit, Michigan 48226 with a Form 3210. If a check is received in Receipt and Control directly from the taxpayer with a closing agreement, DO NOT stamp the check non-negotiable. Route the check and closing agreement to the Detroit Federal Building, 985 Michigan Ave., 4th Floor CETO, Detroit, Michigan 48226 with a Form 3210. Ensure the checks are double sealed in envelopes when routed to CETO.

  2. Process VCSP checks through Manual Deposit as follows:

    1. Prepare Form 1963. All VCSP checks received daily should be placed on one Form 1963.

    2. Stamp the Trace ID Number on Form 3244-A or include the BBTS generated Trace ID Generation page in the Accounting package. .

    3. Route Form 1963, Form 3244-A, copy of the BBTS generated Trace ID Generation page if not stamped on the Form 3244-A, and copy of the check to Accounting for journalization.

    4. Fax a copy of Form 3210 noted with “CR6400” for each VCSP check listed to the e-fax number provided on the Form 3210 to acknowledge receipt of the VCSP payments and verify that all VCSP checks are processed to the 6400 Account.

Form 14402, Internal Revenue Code (IRC) Section 6702(d) Frivolous Tax Submissions Penalty Reduction (Ogden Submission Processing Campus)

  1. Payments received with Form 14402 should be processed through ISRP as follows:

    1. TC 670 with a secondary TC 570

    2. Route Form 14402 to the Frivolous Return Program at M/S 4450.

Affordable Care Act (ACA)

  1. Affordable Care Act (ACA) Payments that are intended for an Affordable Care Act Shared Responsibility Penalty will begin in calendar year 2015 for Individual Taxpayers. Advanced payments by Business Taxpayers can also be accepted beginning in 2015. Payments other than advanced payments for Business Taxpayers are not due until calendar year 2016. The payment should be returned to the taxpayer. The following are some examples of Affordable Care Act Shared Responsibility indications. This list is not all inclusive.

    • ACA

    • ACA Shared Reponsibility Penalty

    • ACA SRPenalty

    • ACA Penalty

    • Obama Care

    • Obama Care Shared Responsibility Penalty

    • Obama Care SRPenalty

    • Obama Care Penalty

  2. ACA payments should be a part of the payment received with Form 1040 for individual taxpayers or received with a notice; therefore these payments normally will be processed through Lockbox Banks. However, inevitably taxpayers will send in payments to the Submission Processing campus without Form 1040 (identified possibly as in the list in IRM 3.8.45.28.17(1) above) or with an ACA Notice. When these payments are received and are considered perfect payments route to ISRP for processing. If imperfect route to Payment Perfection for research. If the payment can be perfected process through ISRP. If the payment cannot be perfected send to Manual Deposit for processing to Unidentified. See IRM 3.24.133–3(16) for ISRP processing of ACA payments.

  3. If the ACA payment is a Foreign Check or cannot be processed through the Transport (e.g. a mutilated check or for various other reasons) or through ISRP RPS OE/KV, the check must be processed through Manual Deposit with the appropriate ACA MFT and DPC.

Form 2290, Heavy Highway Vehicle Use Tax Return (Special Processing Instructions for Cincinnati)

  1. Form 2290 must have the money amount edited on the balance due line if the check amount is less than full paid (.50 tolerance per IRM 3.11.23.17.11, Proof of Payment (Schedule 1)). Full paid and/or more than amount on balance due line will not be edited. The Form 2290 will be sorted no remit and with remit by Batching.

  2. Editing the money amount will alert Code and Edit not to send Schedule 1's to taxpayers for Form 2290s that are not full paid.

Offshore Voluntary Disclosure Program (OVDP) Payment Processing at Austin Submission Processing Center

  1. Offshore Voluntary Disclosure Program Overview. The Offshore Voluntary Disclosure Program is offered to taxpayers who were to come forward and complete all requirements after preliminary acceptance by the Criminal Investigation Division. Taxpayers were directed to provide their initial packages and subsequent payments to the Austin Submission Processing Center (AUSPC) in two separate parts. Checks payable to the Department of Treasury along with information identifying the taxpayer name, taxpayer identification number, and years to which the payment relates to STOP 1919. All other required items must be sent to STOP 4301.
    The complete address is:

    Internal Revenue Service
    3651 S. I H 35 Stop 1919 AUSC (Remittance) or;
    3651 S. I H 35 Stop 4301 AUSC (Non-Remittance)
    Austin, TX 78741
    ATTN: Offshore Voluntary Disclosure Program

  2. Offshore Voluntary Disclosure Program payment processing at AUSPC through Remittance Strategy- Paper Check Conversion (RS-PCC). AUSPC will process all scannable voluntary disclosure payments through Remittance Strategy-Paper Check Conversion (RS-PCC) effective March 13, 2012. Only voluntary disclosure payments will be processed through RS-PCC at AUSPC. All payments sent to Stop 1919 will be considered voluntary disclosure payments. RS-PCC processes paper check images electronically (without sending actual paper checks to a bank). Checks are scanned and the image of the check is captured and processed to the tax account and to the Treasury through the Electronic Federal Payment Posting System (EFPPS). OVDP payments that cannot be processed through RS-PCC will continue to be processed manually. Checks that cannot be processed include foreign checks drawn on foreign banks and checks without valid MICR lines. A 14-digit Document Locator Number (DLN) with the first two numbers identifying the Submission Processing Center Code 81 for Austin identifies the payment on IMFOLT and BMFOLT. There will also be a 15 digit Electronic Funds Transfer (EFT) number beginning with 29520. The collection and reporting process is more efficient. All OVDP initial and subsequent payments received at AUSPC will be processed via RS-PCC. Voluntary disclosure packages will be opened, verified, pre-batched in groups of 25 payments (maximum), and then routed to the RS-PCC Operator for processing. All payments will be key verified by another operator and balanced daily. This work must be performed in the restricted area of Receipt and Control. OVDP payments are the only payments that will be processed on RS-PCC at AUSPC and must not be combined with other work. Only OVDP payments are processed through RS-PCC at AUSPC. After the daily balancing, case files will be sent to OVDP.

  3. Deposit Timeliness. For payments processed through RS-PCC, the 24 hour deposit standard is met by scanning the paper check and submitting it for deposit no later than the first business day after the date of receipt of the check.

  4. Organizing the Work. The work will be done in a centralized location of the Receipt and Control secured area. The work must be organized by the Julian date, which is the received date order. The oldest received inventory must be worked first.

  5. Standard Operating Procedures. Additional information for all IRS users and managers of the RS-PCC and standard operating procedures are included in IRM 3.17.278 Paper Check Conversion (PCC) and Remittance Strategy Paper Check Conversion (RS-PCC) Systems.

OVDP Cash Clerk Role

  1. OVDP Cash Clerks will verify the package contents, ensure all payments are extracted and determine payment posting based on information provided by the taxpayer or their representative. It will be listed on Form 1040X Amended Return or stated.

  2. Cash Clerks will then use their computer to record the payments on Form 14350, OVDP Payment Posting Voucher. Take the following actions:

    1. Download a blank Form 14350 OVDP Payment Posting Voucher and save the form to your computer desktop. Use the reset button to clear all information from the Form 14350.

    2. Use your computer keyboard to complete one Form 14350 for each taxpayer.

    3. Record Payment Types as single, split, multiple or complex:

      Single – This payment type is one check to one tax type, year and period.

      Split - This payment type is several transactions for one remittance.

      Multiple – This payment type is a combination of remittancesand transactions. For example, two checks designated to pay for one transaction.

      Complex - This payment type is a combination of split and multiple remittances and transactions. Check both Split and Multiple on the Form 14350. For example, three checks designated to pay for five tax periods. No remattance matches any transaction.

    4. Document the total amount of remittance(s) received from the taxpayer.

    5. Document the number of remittances received from the taxpayer.

    6. Document the official IRS received date.

    7. Record payment transaction(s) for each check on Form 14350:

      Taxpayer Name control.

      Taxpayer Identification Number (TIN)

      Master file tax (MFT) Code 30 for individual income taxes, penalties and interest. Use the appropriate MFT code for business payments. Refer to Document 6209 ADP/IDRS Information.

      Dollar amount of the payment transaction per type of tax and tax period. If there is more than one Form 1040X, then list the dollar amount for each tax period based on the AMOUNT DUE line of Form 1040X, or as directed by the taxpayer’s correspondence. Use Primary Transaction Code (TC) 640 Advanced Payment of Deficiency and Secondary TC 570. Use Designated Payment Code (DPC) 24.

      If the dollar amount of the remittance is to be applied to penalties, then list the penalty on the Form 14350 and the dollar amount of that transaction. Record the penalty for individuals to MFT 55. Record the penalty for business taxpayers to MFT 13. Post all individual MFT 55 penalties to tax year 2014. Post all business MFT 13 penalties to tax year 2014 unless taxpayer or Power of Attorney specifically requests penalties be applied to a different tax year.

    8. If you receive a remittance in the OVDP, and there is no indication of where it should be applied, then research IDRS to determine if voluntary payments posted previously. If no indication, then apply to MFT 55, tax period 2014. If unable to determine the correct tax period, then include a comment on Form 14350. If the taxpayer mentions OVDP 2012, then the taxpayer is merely stating the version of the program he is accepted into, as opposed to OVDI (2011) or any of the previous programs. That statement should not be taken as an instruction to post the payment to 2012.

    9. Print each completed Form 14350 and place its corresponding check on top of Form 14350. When you have recorded 25 checks on Form 14350, or if you are logging off your computer workstation for the day, then print the completed Form 14350.

    10. Count and run a calculator tape to ensure the volume of 25 checks and dollar amounts of those checks match the dollar total of completed Form 14350s. If the dollars and volume match, then the checks are balanced to the Form 14350. Keep the calculator tape associated with the checks.

    11. Route the batch of checks with completed Form 14350s and calculator tape to the RS-PCC scanner operator as locally directed.

    12. Keep all documents of each taxpayer's case file tightly secured and on the work cart as locally directed by the supervisor. All case files must remain together in a central location until the end of day balancing is completed identifying the date the work was received, as directed by local management.

OVDP RS-PCC Scanner Operator Role

  1. RS-PCC Scanner Operator Role. OVDP payments received at Austin Submission Processing Center will be processed through RS-PCC. Refer to IRM 3.17.278. Paper Check Conversion (PCC) and Remittance Strategy Paper Check Conversion (RS-PCC) Systems.

  2. Complete a RPSID sheet and place it atop the batch folder, as directed by local management.

  3. The RS-PCC Operator is responsible for taking steps to deposit checks as follows:

    1. Start Payment Block Processing. The operator completes the beginning of day procedures and is ready to input the block. The system has generated CC STBLK with the BEG SEQ information (example - 0562900Z49000). The format of the BEG SEQ is the following:

      Format Position Format Position Description
      Positions 1-3 (example 056) Julian entered during the opening process
      Positions 4-10 (example 2900Z49) Identifies the operator's computer system
      Positions 11-13 (example 000) represents the beginning sequence number

      Note:

      The system will display today’s date with the Julian date along with the deposit date.

    2. Record the Block Header Information. Enter the block information on CC STBLK indicating the unit count and total dollar amount of the units.

    3. Scan payment checks.

    4. Populate all the fields identified with an asterisk (*) next to the field name, after each check is successfully scanned.

    5. Compare the Form 14350 total(s) to the batch list on RS-PCC to ensure all checks have been processed. Edit when necessary before sending the batch for RS-PCC key verification. Do not transmit payments before key verification.

    6. Scanned checks must have “Electronically Presented” printed on them. The scanner equipment does this automatically. If the scanner is out of ink, or otherwise malfunctions, you must ensure scanned checks are stamped “Electronically Presented”.

    7. Transmit check information to the Treasury Bureau of the Fiscal Service (Formerly the Financial Management Service (FMS)) via the RS-PCC System.

    8. Retrieve the deposit ticket information from the Electronic Verification and Imaging System (ELVIS) each day for the prior day’s scanned checks.

    9. Balance the End of Day report to the ELVIS (215 report).

    10. Retain franked checks on file for at least 2 months. Managers can authorize shredding of a batch of checks if the checks have been retained for at least 2 months AND the corresponding deposit ticket no longer appears on the Reconciliation Report (Deposit Ticket Summary). See IRM 3.8.45.30.6 for detailed shredding instructions.

  4. Place the completed Form 14350s with the corresponding case file for routing to OVDI Unit in LB&I.

OVDP RS-PCC Key Verification

  1. After successfully scanning the checks, the key verification must be completed by a different employee (not the same employee that scanned the payments into a batch). Key verification is the last step before the payment is transmitted to the Bureau of Fiscal Service.

  2. Key verification is reviewing the same information recorded during payment entry to ensure it is correct. If there are inconsistencies, then review the source document and correspondence to ensure the dollar amount(s) are correct.

RS-PCC Daily Balancing For OVDP Payments

  1. All scanned work MUST be balanced daily.

  2. The Manager/Lead or other authorized designee must balance the previous day’s work using the 215 Deposit Ticket, the Batch Listing from the scanned work, and the RS-PCC End of Day Report. Refer to IRM 3.17.278.11.16, RS-PCC Balancing, Exhibit 3.17.278-10, Exhibit 3.17.278-8 and Exhibit 3.17.278-7. Take the following steps:

    Step Action
    1 Order the RS-PCC End of Day Report at the beginning of each business day to use for balancing.
    2 Compare the End of Day Report to the 215 Deposit Ticket Report to ensure all scanned checks were successfully processed through to Fiscal Service (FS). All payments listed on the end of day report must be reflected on the deposit ticket.
    3 Look at the payment status. If the payment status is “POSTED” or “DEPOSITED,” then the payments processed through to Fiscal Service (FS), and you must annotate the Batch Cover Sheet with the deposit ticket date (found at the top of the 215 Deposit Ticket Report).

    If the payment status is not “POSTED” or “DEPOSITED”, then go to step 4.

    Note:

    The payment status “ACKNOWLEDGED” does not indicate successful deposit.

    4 If the End of Day Report does not match the 215 Deposit Ticket Report, then determine what batches and/or checks were not processed through to FS.

    If payment status is not “POSTED” or “DEPOSITED”, then the payment did not successfully deposit. Open the batch to view the list of checks in the batch.
    5 If an entire batch failed to process through FS, then the batch will be in “Failed During Transmit”, or “Failed to Transmit” status, and you must take corrective action. Restart the batch to retransmit for deposit.
    6 Monitor the status to ensure that the retransmitted batch processes through to FS. Repeat Steps 1 through 5 to ensure the retransmitted batch is successful. If unsuccessful after retransmission, or for technical assistance, contact the RS-PCC Team. See Step 8 below.
    7 After all daily balancing is complete and reconciled, then associate the completed Form(s) 14350 OVDP Payment Posting Voucher with the corresponding case file(s) and route to the OVDI Unit of LB&I.
    8 Contact the HQ RS-PCC Team at &W&I CAS:SP:ATP:EP:RSPCC for technical assistance. Use “Failed Deposit” in the subject email. The RS-PCC project team answers questions sent to this link within 24 hours. Follow directions given by RS-PCC Team member. If you do not receive an answer to your question within 24 hours, then contact the HQ Submission Processing Deposit analyst.

OVDP Corrections After Payment Posting through RS-PCC (for AUSPC Manual Deposit only)

  1. Separation of duties must be maintained and Manual Deposit may not have adjustment capability. If you discover that AUSPC misapplied an OVDP payment through RS-PCC, then send a secure email immediately to the RS-PCC Team at &W&I CAS:SP:ATP:EP:RSPCC. Include the tax information and detail what the error is and where the payment should have been applied. RS-PCC Team will route the inquiry to Ogden Submission Processing EFPPS Unit in Accounting for correction.

Shred Procedures for RS-PCC Processed Checks

  1. A shredder must be located within the unit where RS-PCC scanned checks are securely stored.

  2. Use the Reconciliation Report Deposit Ticket Summary to determine when the hard copy checks should be shredded.

  3. Users can shred checks 2 months after the Deposit Ticket date (for that check) AND that Deposit Ticket is no longer on the Reconciliation Deposit Ticket Summary Report.

  4. Users may not shred checks less than 2 months from the Deposit Ticket Date

  5. Users may not shred checks that appear on the Reconciliation Deposit Ticket Summary Report.

  6. Deposit Ticket States:

    • Summary Received - The creation of the deposit ticket (ALC+2, deposit date, deposit ticket number, IRN)

    • Detailed Received - Deposit ticket has been successfully retrieved and stored within the RS-PCC application

    • Transmitted for Posting - RS-PCC has successfully prepared and transmitted the payment record file to EFPPS

    • Posted - Response has been received from EFPPS that all transactions have successfully posted to the master files

    • Transmitted for Archival - Deposit data has been transmitted to Remittance Transaction Research System (RTR) for long-term research.

OVDP Foreign Checks

  1. If a foreign check drawn on a foreign bank is received with an original OVDP package at the Austin Submission Processing Center, then a copy of the foreign check must be provided to the P and A Analyst for Receipt and Control for executive reports, and to the designated SB/SE Technical Advisor. The designated Technical Advisor is ≡ ≡ ≡ ≡ ≡ ≡ ≡ Provide the foreign check copies via secure fax to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ by the 10th day of the following month.

Expanded Streamlined Filing Compliance Program (AUSPC Only)

  1. IRS expanded the Streamlined Filing Compliance Program for individual (Form 1040) and individual estate (Form 1041) offshore accounts effective July 1, 2014. Taxpayers are directed to send either a Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures or Certification by U.S. Taxpayers Residing Outside the United States package with payment. The Streamlined package will be directed to AUSPC Mail Stop 6063 Attn: Streamlined Foreign Offshore and will include:

    1. Certification form (either foreign or domestic)

    2. Original Amended tax returns for up to 3 years to be processed with "Streamlined Foreign Offshore" written across the top in red of the first page

    3. Possibly Original delinquent Form 1040, Form 1041, Form 1040NR, Form 1040SS, or Form 1040PR tax returns, with "Streamlined Foreign Offshore" written across the top in red of the first page

    4. Payment(s)

    5. Information returns (e.g., Form 3520, 3520-A, 5471, 5472, 8938, 926, 8621) including FBARS (FinCEN Form 114)

    Streamlined Filing is not the same as Offshore Voluntary Disclosure Program (OVDP). Do not confuse the two programs. Keep them separate. Extraction will date stamp all Streamlined Filing Program forms and keep all forms together in a package. Extraction will place all checks on top of the package and then route to Payment Perfection Unit (PPU) for processing through ISRP according to taxpayer intent.

  2. General Procedures for Streamlined Payment Processing

    1. Tax Identification Number is required to be placed on the check.

    2. Use the certification form (either foreign or domestic) as the payment posting voucher.

    3. Look at Page 1 of the certification form for tax periods and amounts to be applied for each tax period. Ensure these dollar amounts balance if a single payment is submitted.

    4. Look for a penalty computation and payment amount on Page 4 of the domestic certification form only.

    5. Process amended tax return payments with MFT 30 for the correct tax period with Transaction Code 670 Subsequent Payment (TC 670) with secondary transaction code 570. Use Designated Payment Code (DPC 61) for amended returns.

    6. Process Form 1040 delinquent return tax payments with MFT 30 for the correct tax period with Transaction Code 610. Use Designated Payment Code 61.

    7. Process Form 1041 tax returns with MFT 05 for the correct tax period with Transaction Code 610. Use Designated Payment Code 61.

    8. Process Form 1040NR tax return payments with MFT 30 for the correct tax period with Transaction Code 610. Use Designated Payment Code 61.

    9. Process Form 1040SS U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) tax returns with MFT 30 for the correct tax period with Transaction Code 610. Use Designated Payment Code 61.

    10. Process Form 1040PR tax return payments with MFT 30 for the correct tax period with Transaction Code 610. Use Designated Payment Code 61.

    11. Process delinquent return penalty payments with MFT 55, with Transaction code 670 and secondary transaction code 570 to the last year in the certification package as long as that year still has an open Statute. If the last year in the certification package does not have an open statute process to the current year.

    12. Process Form 1040X penalty payments with MFT 55, for tax period 2014 with Transaction Code 670 Subsequent Payment with secondary transaction code 570 (TC 670/TC 570). If there is no tax year 2014 document submitted, then process to the most current tax year in the package. Use DPC 61.

  3. Specific Instructions Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures. The certification form identifies the tax periods and amounts (for split check processing).

    1. Use the certification form as payment posting voucher.

    2. If a split payment, then balance the check amount to tax periods and amounts listed on page 1 and Title 26 miscellaneous penalty amounts listed on page 4.

    3. If separate checks are submitted for each tax year, then ensure the dollar amounts received are the same as the dollar amounts listed on the certification form. If the dollar amounts are different, then use the amount of the check.

    4. Use MFT 30 for amended individual tax years with TC 670/TC 570 and DPC 61.

    5. Use MFT 30 with TC 610 for delinquent return payments. Use Designated Payment Code 61.

    6. Use MFT 55 for amended return penalty amounts with TC 670/TC 570 and DPC 61. Use Designated Payment Code 61.

    7. Use MFT 55 for penalty amounts with original returns with TC 670/TC 570. Use Designated Payment Code 61.

    8. Process penalty amounts listed on page 4 to tax year 2014 or the most current tax period in the package.

  4. Specific Instructions for the Streamlined Foreign Offshore Procedures Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. The certification form identifies the delinquent or amended return tax periods and amounts (for split check processing). Process Form 1040X payments to MFT 30 to the tax period listed with TC 670 and secondary TC 570. Use DPC 61 for amended returns.

    1. Use the certification form as payment posting voucher

    2. If a split payment, then balance the check amount to tax periods and amounts listed on page 1

    3. If separate checks are submitted for each tax year, then ensure the dollar amounts received are the same as the dollar amounts listed on the certification form. If different, then use the amount on the tax return(s)

    4. Use MFT 30 for amended individual tax years with TC 670/TC 570 and DPC 61.

    5. Use MFT 30 with TC 610 for payments with delinquent returns. Use Designated Payment Code 61.

    Process original Form 1040 (1040NR, 1040SS, 1040PR) payments to MFT 30 to the tax period listed with TC 610. Use Designated Payment Code 61. Process original Form 1041 payments to MFT 05 to the tax period listed with TC 610. Use Designated Payment Code 61.There is no penalty associated with Streamlined Foreign procedures.

  5. If/Then table for Streamlined Payment processing.

    If... And... Then...
    Original returns are included... Process Form 1040 as MFT 30 using TC 610 and DPC 61. Process Form 1041 as MFT 05 using TC 610 and DPC 61.
    (For Domestic Offshore certification only) Original returns are included... a penalty amount is listed... Process Form 1040 as MFT 30 using TC 610 and DPC 61. Process Form 1041 as MFT 05 using TC 610 and DPC 61. Process penalty as MFT 55 using TC 670/TC 570 and DPC 61 .
    Certification form does not break down amounts by tax year... and taxpayer intent is not listed anywhere else in the package... Post the entire payment amount to the oldest tax period in the package.
    (For Domestic Offshore certification only) Money amount is more than identified on the certification form: Total amounts of payments exceeds total amounts of tax years and penalty amounts specified You have double checked page 4 of the Domestic Offshore certification form and no penalty amount was specified. Post payment(s) to each tax year as specified. Post the additional amount to MFT 30 tax year 2014 or the most current tax period in the package.
    (For Foreign Offshore certification only) Money amount is more than identified on the certification form: Total amounts of payments exceeds total amounts of tax years and penalty amounts specified Post payment(s) to each tax year as specified. Post the additional amount to MFT 30 tax year 2014 or the most current tax period in the package.
    Money amount is less than identified on the certification form: Total amount of payment(s) is less than total amounts specified... Begin to post payment(s) to MFT 30 of the earliest tax period first until the entire payment amount is applied.
    There is no penalty amount reflected on the Domestic Offshore certification form. Do not post a penalty amount.
    There is no certification form included... Original Form 1040X are received at mail stop 6063... Post tax payments according to amount on the Form 1040X.

Definition of Terms

  1. Definition of terms used in and by the Deposit Activity:

    Term Definition
    Account Tax records maintained on magnetic tape in Enterprise Computing Center at Martinsburg, identified and controlled by Social Security Number (SSN), individual taxpayer identification number (ITIN) or employer identification number (EIN).
    Advance Payment Payment made for a determined or undetermined deficiency prior to additional tax assessment.
    Agency Location Code (ALCs) A numeric symbol used to identify accounting reports and documents prepared by IRS. This code consists of eight digits. The fifth and sixth identify a particular Campus.
    Amended Return A return filed to amend data submitted on an original return.
    Annotate To explain or call attention to critical information by marking, coding, or editing.
    Audit Trail Tax identifying information printed on reverse side of remittance that enables re-association of payment and source document.
    AUSPC Austin Submission Processing Campus
    Automated Collection System (ACS) A computerized system which maintains delinquent taxpayer accounts in TDA Status 22.
    Automated Non Master File (NMF) A file containing taxpayer information and records of returns that are not contained on Master file. NMF always requires manual processing.
    Balance Due A line on tax returns and notices indicating taxpayer owes money to IRS.
    Batch Block Tracking System (BBTS) A comprehensive, integrated batch creation and tracking system. It's used to generate block headers for OE/KV input.
    Batch A group of related tax returns or documents processed in Deposit Activity. A batch can consist of 100 or less items of like returns or documents, or 300 scannable notices/vouchers at Transport.
    Block Header Record (BHR) The information transcribed by ISRP to precede each block of documents in order to introduce balancing and identifying items common to the block.
    Block Out-of-Balance (BOB) A condition existing in a given block of documents creating an out-of-balance situation.
    Bureau of the Fiscal Service (Formerly Bureau of Public Debt (BPD)) An agency within the Treasury Department whose responsibilities include donations to reduce the public debt and control of Treasury Estate Bonds. The Bureau of Public Debt has merged with the Financial Management Service and is now the Bureau of the Fiscal Service (BFS).
    Business Master File (BMF) A Master File of various types of business return data which is maintained under an Employer Identification Number.
    Calendar Year (CY) Twelve (12) consecutive months ending December 31.
    Cash Bonds An advance payment received from a taxpayer that expects a tax deficiency to be determined at a later date and which will probably become an appeals or court case.
    Check Digits A two digit alpha code, A to Z, Computer generated derived from a mathematical formula applied to the EIN or SSN. It is used in lieu of Name Control (to reduce keystrokes) when EIN or SSN are unaltered on IRS preprinted labels.
    CSPC Cincinnati Submission Processing Campus
    Collection Statute Expiration Date (CSED) The last date IRS has to collect on an outstanding balance due on an account. Usually Ten years from the Assessment Date.
    Command Code (CC) A five-character abbreviation for a particular inquiry or action requested through IDRS. Each command code is used for a specific purpose.
    Computer Paragraph (CP) Notice A computer generated notice resulting from an analysis of the taxpayer's account. It is used to notify the taxpayers of a balance due, refund, or no balance status. It is also used for internal research and review.
    Conscience Fund The account to be credited when remittances are received from taxpayers to ease their consciences. Usually a note is attached indicating it is for the "Conscience Fund."
    Control Clerk A designated employee who regulates and finalizes the work flow in Deposit Activity.
    Courtesy Deposit A deposit made for out of area remittances, by location received.
    Custodial Detail Data Base (CDDB) Enhancement to Financial Management Information System created to track deposit ticket information using Trace ID number.
    Date Stamp The Campuses IRS Received Date is stamped on tax returns and documents indicating the date received at IRS Campuses, Taxpayer Assistance (TAC) Office or an authorized agent of the IRS.
    Definer A code following the command code; used to request a more detailed search for information on a file.
    Delinquent Return Return filed after the relevant due date without an approved extension.
    Daily Deposit Report (DDR) A continuing report maintained for monitoring the timely deposit of all remittances prescribed by the Deposit Cycle.
    Deposit Cycle The 24 hour time limit authorized to accomplish the deposit of all remittances received each day.
    Deposit Date The calendar date that coincides with the Julian Date assigned in Document Locator Numbers (DLNs).
    Depository/Depositary The bank contracted by Treasury's Bureau of the Fiscal Service (Formerly the Financial Management Service (FMS)) to process IRS deposits and established credit for the Treasury into the Treasury's General Account (TGA).
    Deposit Release (Pick-Up) The established time each day balanced deposits are released to courier.
    Deposit Ticket (DT) The Deposit Ticket, Form SF215A-C, is generated during the final deposit operation from the OTCnet on-line system.
    Designated Payment Codes (DPC) Two digit code used with payments secured by Collections (ACS and Revenue offices) to identify source of payment (levy, seizure, installment, etc.).
    Discovered Remittances Remittances discovered during pipeline processing of the returns, found somewhere within the attachments.
    Employee Plan Master File (EPMF) A Master File maintained at ECC-Enterprise Computing Center, Martinsburg consisting of various types of tax sheltered pension/profit sharing plans.
    Employer Identification Number (EIN) A nine digit number used to identify a taxpayer's business account.
    Encode A system of converting and printing the amount of payment shown on remittance into a Magnetic Ink Character Recognition (MICR) font.
    Endorsement The authorized name of payee on the back of a remittance in order to obtain the cash or credit represented on the front. Each check deposited must show the IRS endorsement, date of deposit (manual endorsements excluded) and legend, and must contain the same ALC and depositor address as shown on Form SF 215A, Deposit Ticket.
    Entity Area The area on source documents where the name, address, account number, tax period and other entity data appear.
    Erroneous Refund Repayment The term used for refund checks issued in error and being repaid by taxpayer.
    Exempt Organization Master File (EOMF) A Master File maintained consisting of Group Exemption Number, Key Field Office, and Field Office of Jurisdiction.
    Federal Reserve Bank (FRB) A Federal bank designated to process IRS bank transactions.
    File Source A one digit code which follows the taxpayer identification number for research on IDRS (D, N, V, W, P, X or *). This directs the computer to a specific file.
    Fiscal Year Twelve consecutive months ending on the last day of any month other than December.
    Flower Bond Terminology occasionally associated with certain Treasury Bonds redeemable for estate taxes.
    Foreign Operation District (FOD) A Field Office with jurisdiction for the IRS Foreign Posts.
    Freeze Code A Freeze Code places a taxpayers account in a condition which requires additional action before the account can be settled.
    FSPC Fresno Submission Processing Campus
    Full Paid (FP) A remittance received equal to the balance due line on timely filed returns.
    Government Accountability Office Investigative Agency for Congress that conducts audits to improve performance and accountability of IRS.
    Grace Period A period of time granted beyond the due date of a return or document, before penalties and interest are charged. See IRM 3.8.44, Campus Deposit Activity, for timely postmark grace period.
    Green Rocker The editing required to annotate the remittance amount for Manual Deposit. Green rockers represent the amount of money received for that return.
    Imperfect All documents that require additional perfection before depositing the money through either the ISRP system or by Manual Deposit.
    Individual Master File (IMF) A Master File of individual tax return data which is accessed by input of a Social Security Number (SSN).
    Individual Taxpayer Identification Number (ITIN) An ITIN is a nine digit number (Assigned by IRS) to those individuals who do not qualify for a SSN but require an identifying number for tax purposes.
    Installment Agreement An arrangement set up between taxpayers and IRS, whereby taxpayers make partial payments until their balance of debt is paid in full.
    Integrated Data Retrieval System (IDRS) A computerized system used throughout IRS for adjusting, researching, ordering, and monitoring tax accounts.
    Redesign Revenue Accounting Control System Database used for posting revenue to the IRS General Ledger.
    Internal Controls Practices and procedures in place to ensure efficiency and provide reasonable assurance against waste, fraud or abuse.
    Internal Revenue Code (IRC) The tax laws as set forth by Congress.
    Internal Revenue Manual (IRM) A handbook of procedure and law specifically designed to cover one area of processing.
    Julian Date A system of numbering days of the year from 001 through 365 (or 366).
    KCSPC Kansas City Submission Processing Campus.
    Key Verify (KV) A status for ISRP terminals to enable data records to be verified by KV operators.
    Levy Used to collect taxes by distraint or seizure of taxpayer's assets. Frequently funds are seized from bank accounts or wages.
    Lien A claim on the property of a taxpayer as security against payment of taxes due.
    List Entering green edited money amounts from source documents into listing machines while preparing Form 813, Document Register, for Manual Deposit deposits.
    Lockbox The process whereby remittances and documents are mailed to a designated P.O. Box at a commercial bank. The remittances are deposited in an expedite manner with immediate credit availability for the Treasury. Source documents are processed simultaneously and forwarded to Campuses.
    Manual Deposit Type of deposit consisting of manually numbering source documents, manually preparing separate documents and remittance registers and separately recapping both the registers.
    Master File (MF) A magnetic tape record containing entity and accounting information concerning taxpayer tax returns and related documents.
    Master File Tax Code (MFT) A two digit number which identifies the type of tax.
    Menu System A system used to indicate the type of operation. These include the Normal Operator Menu, Master Menu and Supervisor Menu on the ISRP System.
    Magnetic Ink Character Recognition (MICR) Print used in the encoding of the payment amounts, routing Transit Number, and Account Number shown on the remittance.
    Missing Section Data A section that was present and transcribed by the OE operator but the document was physically missing at KV. The operator indicates this by deleting document.
    Mis-Sorts Returns and documents within a block that are not of the same type or class of tax.
    Mixed Data An operator has transcribed the data from one document and the remaining information from another document.
    Mixed Entity An operator has transcribed entity from one document and the remaining information from another document.
    Module Part of a taxpayer's account which reflects tax data for one tax class (MFT) and one tax period.
    Multiple Remittances Two or more remittances to be applied to the same source document.
    Name Control (NC) First four significant characters of an individuals last name, the first four letters of the corporate name, or the first four letters of the first listed partners last name in a partnership.
    Non-Negotiable Checks not honored by banks for transfer of funds.
    Non-Revenue Receipts Payments received for items other than taxes, i.e., bulk forms, photocopy fees, court fines, installment agreement user fee, erroneous refund repayments, etc.
    OSPC Ogden Submission Processing Campus
    Offer in Compromise (OIC) A proposal for settlement of tax liability for an amount less than the assessed tax liability.
    Payment Sequence Number (PSN) Last three digits of the terminal payment number assigned by the IDRS terminal number, which identifies a specific remittance input. The PSN carries information used in constructing a true payment DLN.
    Part Paid (PP) A remittance which does not equal the amount shown on the balance due line of the document.
    Pending Transaction A transaction input to IDRS but not yet effective at the Master File Account.
    Perfection A function within deposit activity responsible for researching attachments on source documents and presearching IDRS, ANMF or ACS terminals to perfect documents for payment processing.
    Perfect Documents and returns with legible taxpayer name, TIN, one MFT code, multiple tax periods and one remittance.
    Photocopy Fees Prepayments received with request for tax forms and information.
    Posting Vouchers A source document (Posting Voucher) containing the required information for input by the deposit activity.
    Pre-Batch The establishment of batches of work and controls for each group of documents processed through ISRP.
    Presearch The act of searching for required data not present on source documents via IDRS, ACS, or ANMF terminals prior to actual deposit of remittance.
    Primary SSN Nine digit number required on all IMF input documents. (Usually located in first social security number box on returns.)
    Prior Year A tax return with a due date prior to current operating year.
    Procedure The established way or course of action for processing remittances/source documents.
    Processing Year The actual calendar year a return is filed and processed, i.e., 2011 Tax Returns are filed and processed in calendar year 2012.
    Program Number A five digit number used to identify types of remittance source documents that are being entered into ISRP.
    Quality Review (QR) The appraisal of the quality of work input and output through the Deposit Function.
    Recapitulation Balancing summaries of remittances to documents.
    Received Date The earliest date source documents are received in IRS offices.
    Redeposits The redeposit of unpaid checks returned as dishonored by banks (not always the designated depositary).
    Remittance Amount An amount of money received in payment of taxes, that may be a check, money order, cashier's check, or cash.
    Remittance Processing System (RPS) Automated system for processing remittance data.
    Secondary Amount A second transaction code, with money amount, to be posted to taxpayer's account and shown on one document.
    Seized Property Taxpayer possessions IRS secures for lack of payment of delinquent taxes.
    Campuses Location Code A two digit numeric code which identifies each Campus.
    Slipped Blocks/Mixed Data/Mixed Entity An operator has mixed data or mixed entity on several documents within a block.
    Social Security Number (SSN) A nine digit number (assigned by SSA) used as the account number of a taxpayer on IMF. May also be the identifying number on certain BMF accounts.
    Split Remittance (Splits) One or more remittances to be applied to one or more remittance transactions.
    Statute Cases A delinquent return with the Statute of Limitations in jeopardy.
    Statute of Limitations A specified period of time for correction of taxes by IRS, usually three years from the due date or received date of the return, whichever is later.
    STAUP An IDRS Command Code used to delay issuance of taxpayer notices when subsequent payments have not had time to update module.
    Subsequent Payment (Sub/Pay) A payment on account for a tax return that was filed but not full-paid.
    Substitute for Return (SFR) A procedure by which Examination is able to establish accounts and examine the records of taxpayers when taxpayers refuse or are unable to file, and information received indicates that a return should be filed.
    Taxpayer Delinquent Account (TDA) Taxpayer account which show a return was filed for a particular tax period but still has a balance due.
    Taxpayer Delinquency Investigation (TDI) A return for a specified prior period is not on file and an investigation is being conducted.
    Taxpayer Identification Number (TIN) The controlling nine digit number assigned to identify each taxpayer's master file account which could be an SSN or EIN.
    Taxpayer Information File (TIF) A record of tax data under a specific taxpayer identifying number.
    Tax Receipt (Form 809) official IRS receipt issued for tax payments submitted in cash or when a receipt is requested by a taxpayer.
    Teller The designated employee to process cash payments and issue tax receipts.
    Temporary SSN Assigned by the Campuses. On Enterprise Computing Center-Martinsburg (ECC) or IDRS transcripts an asterisk (*) appears following the invalid number. The fourth and fifth digit is the Campuses number were issued.
    Terminal Payment Number A 13 digit number established each day for each terminal from which remittance will be input. The last three digits are the payment sequence number of the payments input.
    Tertiary Amounts A third transaction amount for one document. Must be a debit amount to be assessed.
    Trace ID Number A 20 digit number used for tracking payment information in the Custodial Detail Database (CDDB).
    Transaction Code (TC) A three digit code used to identify credit and debit actions taken on a taxpayers account.
    Transaction Date Six numeric digits in MMDDYYYY format, and is the actual IRS received date.
    Treasury Bonds Certain bonds which may be redeemed by the Bureau of the Fiscal Service (Formerly the Bureau of Public Debt) or Federal Reserve Banks, where purchased, in payment of decedent returns.
    Treasury Checks Checks which may consist of Taxpayer Refund Checks, checks from another government agency in payment of their taxes, and checks from the Bureau of the Fiscal Service (Formerly the Bureau of Public Debt) for redeemed Treasury Bonds.
    Treasury General Account (TGA) Bank A commercial bank that serves as a general depositary for Federal Government agencies.
    Unidentified Remittances or documents without necessary identification to apply to master file accounts.
    Unidentified Remittance File (URF) Source Documents that remain unperfected without sufficient information to properly apply to a taxpayer's account, which are input into IDRS using CC URAPL.
    User Fee Remittance (UFR) Non-tax payment made by Taxpayers or tax-exempt organizations to secure or reinstate an installment agreement or to retain their fiscal year filing status.
    With Remittance (W/R) All documents and returns received with a payment delivered to the deposit activity for processing with assigned DLN.

Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts

  1. When an original Form 8697, "Interest Computation Under the Look-Back Method for Completed Long-Term Contracts," is filed separately with a remittance, taxpayers must:

    1. Sign the form as an original.

    2. Check the appropriate tax type box in B.

    3. Indicate the tax period.

    4. Include the TIN in Box A.

    Note:

    All Form 8697s are processed to master file.

  2. Use Form 8697 as the source document and process the remittance according to the tax type indicated by the taxpayer on the form. Refer to Document 6209, IRS Processing Codes and Information, for the appropriate MFT.

    1. MFT - Various
      • Corporation - MFT 02
      • S Corporation - MFT 02
      • Estates/Trusts - MFT 05
      • Partnership - MFT 06
      • Individual - MFT 30

    2. Doc Code - Various

    3. Transaction Code: TC 670/TC 570 (Additional liability is pending).

Ramp Down or Transition: Procedures for Deposit, Payment Perfection and Field Office Payment Processing Operations

  1. The Service has determined that only the Kansas City and Ogden Submission Processing sites will continue to process paper remittances. Past consolidation efforts called into focus a need for guidance on specific program activities. This subsection provides guidance for Manual Deposit and Payment Perfection Processing operations to effect an orderly consolidation. These procedures are applicable only as directed by Headquarters Submission Processing.

  2. Ramping Down Manual Deposit Operations: Ramping down Manual Deposit operations includes notification and termination of depository and courier contracts, and securing financial data, financial records, and related forms. Sites must contact their local Records Officer and identify all financial forms with expired statute periods to determine appropriate disposition. This may mean destruction or retirement to the Federal Records Center. Financial forms within the statute period must be identified and assembled for either transition to a new site or permanent filing as directed by Headquarters Submission Processing.

    Action(s) Required Target Due Date in Advance of Ramp Down Responsible Official(s)
    Notify Depository of Final Date of Deposit. 6 months in advance of rampdown Headquarters Submission Processing
    Operations Manager, Receipt and Control
    Notify COR of final date of courier contract requirement. Coordinate with Mission Assurance as appropriate. 6 months in advance of rampdown Headquarters Submission Processing
    Operations Manager, Receipt and Control
    Identify and assemble all Form 10160 within statute period for permanent filing. 3 months in advance of rampdown Operations Manager, Receipt and Control
    Identify and assemble all Form 784, and Form 2679 for permanent filing. 3 months in advance of rampdown Operations Manager, Receipt and Control
    Identify and assemble all Form 3210 related to remittances. 3 months in advance of rampdown Operations Manager, Receipt and Control
    Identify and assemble all Form 813 for permanent filing. 3 months in advance of rampdown Operations Manager Receipt and Control
    Contact Records Officer for guidance and effect lawful, orderly destruction of expired records. 6 months in advance of rampdown Operations Manager, Receipt and Control
    Determine location of retention records. Provide guidance to Operations Manager Receipt and Control. ASAP Headquarters Submission Processing
    Initiate Form 5081 to effect termination of sensitive IDRS command codes, i.e., CC PAYMT. 20 workdays in advance of final deposit activity for the employee Operations Manager, Receipt and Control
    Review and adjust IDRS profiles and retrieve Document 6209, ADP and IDRS Information. Final date of use as needed Operations Manager, Receipt and Control
    Coordinate OTCnet Roles and Responsibilities with HQ OTCnet Analyst to be effective on date of rampdown 3 months prior to rampdown to prepare for final date of use. Primary Local Security Administrator (PLSA), HQ Analyst
    Campus Planning & Analysis Local Security Administrator (LSA)
    ATP SharePoint changes 3 Months prior to rampdown ATP SharePoint HQ Analyst
  3. Ramping Down Payment Perfection Operations: Ramping down Payment Perfection Operations requires discontinuing use of ISRP, RTR, IDRS, and ensuring appropriate disposition of records.

    Action(s) Required Target Due Date in Advance of Ramp Down Responsible Official(s)
    Assemble any Deposit and financial forms in permanent files. Begin at least 3 months prior to rampdown Operations Manager, Receipt and Control
    Adjust employee IDRS profiles and/or access to be effective on date of rampdown. One week Operations Manager, Receipt and Control

    Note:

    IRM 21.1.7, Campus Support, provides guidance for ramped down sites, who will process payments using paper check conversion, under Accounts Management.

Daily Deposit Report (DDR)

Daily Deposit Report - ____________________20XX
____________________ Submission Processing Campus
Date ISRP Deposit Ticket **Manual Deposit Tickets Bank Leads Repayment Deposit Tickets Total
Volume Amount Volume Amount Volume Amount Volume Amount
XX/01/20XX 0 $0.00
XX/02/20XX 0 $0.00
XX/03/20XX 0 $0.00
XX/04/20XX 0 $0.00
XX/05/20XX 0 $0.00
XX/06/20XX 0 $0.00
XX/07/20XX 0 $0.00
XX/08/20XX 0 $0.00
XX/09/20XX 0 $0.00
XX/10/20XX 0 $0.00
XX/11/20XX 0 $0.00
XX/12/20XX 0 $0.00
XX/13/20XX 0 $0.00
XX/14/20XX 0 $0.00
XX/15/20XX 0 $0.00
XX/16/20XX 0 $0.00
XX/17/20XX 0 $0.00
XX/18/20XX 0 $0.00
XX/19/20XX 0 $0.00
XX/20/20XX 0 $0.00
XX/21/20XX 0 $0.00
XX/22/20XX 0 $0.00
XX/23/20XX 0 $0.00
XX/24/20XX 0 $0.00
XX/25/20XX 0 $0.00
XX/26/20XX 0 $0.00
XX/27/20XX 0 $0.00
XX/28/20XX 0 $0.00
XX/29/20XX 0 $0.00
XX/30/20XX 0 $0.00
XX/31/20XX 0 $0.00
TOTAL 0 $0.00 0 $0.00 0 $0.00 0 $0.00
**Manual Deposit Totals = Manual Deposit Tickets, Unidentified Deposit Tickets, IDRS Deposit Tickets.

This report must be emailed daily by close of business to:
  • *HQ Service Center Accounting (On the IRS global address directory)

  • receipts@do.treas.gov

  • nympstaff.markets@ny.frb.org

Manager Review of Restricted Items in Secure Receipt Processing Areas

MANAGER REVIEW OF RESTRICTED ITEMS IN SECURE RECEIPT PROCESSING AREAS
DATE:
EMPLOYEE NAME UNIT NUMBER FINDINGS (IF NO FINDINGS, MARK "NONE" ) REVIEWER INITIALS

Form 3244 with Multiple Remittance

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Split Remittance

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Multiple/Split Remittance

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Preparation of Form 813-A from Form(s) 813 (Manual Deposit)

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Job Aid for Form 10160, Receipt of Transport of IRS Deposit

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Courier Incident Log

____SPC Courier Incident Log

____________________________Courier Company Name
Date Courier Employee Name Pick-up Time # boxes Problems incurred Actions Taken

Courier Daily Checklist

COURIER DAILY CHECKLIST
The IRS employee releasing the deposit to the Courier must place a checkmark in the "Yes" or "No" column next to each IRM 3.8.45.1.9 requirement below after it has been verified.

Note:

IF ANY ITEM BELOW IS CHECKED "NO" DO NOT RELEASE THE DEPOSIT. IMMEDIATELY CONTACT THE DEPOSIT MANAGER OR ACTING MANAGER.

Deposit Requirements - IRM 3.8.45.1.9.3(15)
Yes No
Boxes are secured with heat strap or packing tape on all sides securing all top flaps, side panels and seams.
Boxes are clearly labeled with the Campus and Bank addresses.
Boxes are placed in high-level mailbags.
Mailbags are sealed with non-sequential serialized tags/seals
Form 10160 Requirements - IRM 3.8.45.1.9.3(16)
Yes No
Form 10160 contains the Campus' name.
Form 10160 contains the printed name and signature of the IRS employee releasing the deposit to the Courier.
Form 10160 contains the date and time deposit is released to the Courier. Use a courier employee cell phone time to ensure the time is exact and they are carrying a cell phone.
Form 10160 contains the number of boxes released and the serialized numbers of the security seals ("Description" column).
Form 10160 contains the Courier employee's printed name and signature.
Form 10160 from the previous day has been returned by the Courier. The deposit can be released if NO is checked. Notate Courier Log if not received back.
Is the delivery timeframe from the previous day's Form 10160 within the time allowed in the Courier Statement of Work? If not an explanation from the Courier is needed. The deposit can be released if NO is checked and a reasonable explanation is provided.
Courier Requirements - IRM 3.8.45.1.9.1(10) and IRM 3.8.45.1.9.3(10), (12), and (14)
Yes No
There are two Courier employees.
Both Courier employees appear on the Courier Deposit Access List (CDAL). (Only an updated CDAL for the current month is acceptable)
The Courier Additional Disclosure Statement (CADS) has been checked and the Courier employees are not related.
Couriers are wearing uniforms with their company's logo.
Each Courier is wearing his/her company issued photo ID.
The vehicle appears to be in good condition, appearance and working order.
The vehicle has a secure area large enough to hold today's deposit.
The deposit is placed in a clean, empty, and secure area of the vehicle (truck or cab) that does not contain any other packages, boxes, or debris.

Note:

The bed portion of a truck or any open-bedded vehicle (with or without a camper shell is NOT a secure area. Deposits cannot be placed in these areas of the vehicle.

The vehicle is locked once the deposit is inside the vehicle. (Check all doors)
Courier Contingency Plan - IRM 3.8.45.1.9.3.1
Yes No
Will the Courier Contingency Plan be implemented? If NO, release deposit to the Courier Contractor. If YES, ensure the Courier Incident Log is updated with a detailed explanation. The Courier Requirements section of this checklist does not need to be completed if the Courier Contingency Plan is implemented for reasons other than what is listed in that section of the checklist.
If the Courier Contingency Plan is implemented, are the two employees that will be delivering the deposit to the depository location listed in the Courier Contingency Plan as designated employees for delivering the deposit? Employees delivering the deposit to the depository must be listed in the Courier Contingency Plan.
The IRS employee releasing the deposit to the Courier must sign and date here to confirm all items above have been verified.
IRS Releasing Employee Signature ____________________________ DATE_____________
If any item is not in compliance with IRM 3.8.45, the Deposit Manager must sign and date here and briefly explain the problem(s) and the action(s) taken to ensure the security of IRS' deposit on the Courier Incident Log.
Deposit Manager Signature __________________________________ DATE_____________

Bank of America OTCnet Supported Countries of Deposit For Foreign Check Currency Types

Bank of America
OTCnet Supported Countries of Deposit for Acceptable Foreign Check Currencies
Country Currency/Currency Code
Australia Australian Doll/AUD
Austria Euro Currency/EUR
Belgium Euro Currency/EUR
Canada Canadian Dollar/CAN
Denmark Danish Kroner/DKK
European Community Euro Currency/EUR
Finland Euro Currency/EUR
France Euro Currency/EUR
Germany Euro Currency/EUR
Greece Euro Currency/EUR
Hong Kong Hong Kong Dollar/HKD
Ireland Euro Currency/EUR
Italy* Euro Currency/EUR
Japan Yen/JPY
Mexico Mexican Pesos/MXN
New Zealand New Zealand Dollar/NZD
Portugal Euro Currency/EUR
Saudi Arabia Saudi Arabian Riyal/SAR
Scotland Pound Sterling/GBP
Singapore* Singapore Dollar/SGD
Spain Euro Currency/EUR
Sweden Swedish Kronor/SEK
Switzerland Swiss Franc/CHF
United Arab Emirates Dirham/AED
United Kingdom Pound Sterling/GBP
Unsupported Unsupported/Other
*LIMITATIONS DUE TO EXCHANGE CONTROL REGULATIONS
  • Singapore: Non-transferable items must be processed on a Collection basis

  • Italy: Checks <1,000.00 must have an endorsement "nontransferable"

United Kingdom - List Of Clearing Banks

UNITED KINGDOM - List of Clearing Banks
BANK OF SCOTLAND DEN DANSKE BANK AKTIESELSKAB
BARCLAYS BANK PLC DEUTSCHE BANK AG
HSBC BANK PLC EFG EUROBANK ERGASIAS
LLOYDS TSB BANK PLC ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG
THE ROYAL BANK OF SCOTLAND PLC FIBI BANK (UK) LTD
NATWEST BANK PLC FORTIS BANK NV (Formerly Mees Pierson & Generale Bank)
ABC INTERNATIONAL BANK PLC GHANA INTERNATIONAL BANK PLC
ADAM AND COMPANY PLC GIROBANK PLC
ALLIED IRISH BANK HAMBURGISCHE LANDESBANK GIROZENTRALE
ALPHA BANK LONDON LTD HANIL BANK
ANZ BANKING GROUP LTD (BUT NOT ANZ GRINDLAYS) HOARE (C) & CO
BANCO DO BRASIL S.A. ING BANK N.V.
BANGKOK BANK PUBLIC COMPANY LTD MELLON BANK NA
BANK LEUMI [UK] PLC MIZUHO CORPORATE BANK
BANK OF AMERICA NT & SA MORGAN GRENFELL & CO LTD
BANK OF IRELAND NATIONAL BANK OF EGYPT INTERNATIONAL LTD
BANK OF MONTREAL NATIONAL BANK OF GREECE SA
BANK OF MONTREAL EUROPE LTD NEDCOR BANK LTD
BANK OF NEW YORK NORTHERN TRUST COMPANY
BANQUE NATIONALE DE PARIS PLC RABOBANK
BARCLAYS PRIVATE BANK LTD RIGGS BANK EUROPE LTD
BAYERISCHE HYPO UND VEREINSBANK AG RIYAD BANK
BFG BANK AG ROYAL BANK OF CANADA
BRITISH ARAB COMMERCIAL BANK LTD ROYAL BANK OF CANADA EUROPE LTD
BROWN, SHIPLEY & CO LTD SILICON VALLEY BANK LONDON
BUTTERFIELD BANK (UK) LTD SOCIETE GENERALE
BSI-BANCA DELLA SVIZZERA ITALIANA STANDARD CHARTERED BANK
CHARTERHOUSE BANK LIMITED SVENSKA HANDELSBANKEN
CHASE MANHATTAN BANK N.A. SWISS BANK CORPORATION
CITIBANK N.A. T.C.ZIRAAT BANKASI
CLYDESDALE BANK PLC UNION BANK OF NIGERIA LTD
CO-OPERATIVE BANK PLC UNITED OVERSEAS BANK LTD
COUTTS AND CO WACHOVIA BANK NA
CREDIT LYONNAIS