3.17.15 Accounting Reports Analyst - Responsibilities

Manual Transmittal

August 09, 2016

Purpose

(1) This transmits revised IRM 3.17.15 Accounting and Data Control, Accounting Reports Analyst - Responsibilities.

Background

IRM 3.17.15 was created to provide instructions to the reports analysts at the Submission Processing campuses. Its primary use is for maintaining the subsidiary accounts and Accounting reports.

Material Changes

(1) IPU 16U0595 issued 03-24-2016 IRM 3.17.15.7.28.1(7) Added or lead to program review for Internal Controls

(2) IPU 16U0595 issued 03-24-2016 IRM 3.17.15.1.2 (3) Added ,lead to the review process for the 6400 Account

(3) IPU 16U0861 issued 05-04-2016 IRM 3.17.15.7.38.2(1) Added Reviews must be performed by the front line manager throughout the month and the reports analyst must perform a quarterly review.

(4) IPU 16U0861 issued 05-04-2016 IRM 3.17.15.7.38.2(1) Added Note: The Reports Analyst must e-mail the completed quarterly review to the DOJ HQ Analyst.

(5) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.10.1(3) - Changed Lead or the Manager to Lead or Manager.

(6) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.10(8) - Changed Manager/Reports Analyst to Lead or Manager.

(7) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.7.18.1(7) - Added Reports view via Control D, retention in Document 12990.

(8) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.3(4) - Added for example (XSF, DCF URF).

(9) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.7.4 - Removed Note for 1535 account: case file is maintained in Ogden.

(10) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.7.8(3) - Corrected account to 1547 and IRM reference to 3.17.64.17.11.

(11) IPU 16U0989 issued 05-27-2016 IRM 3.17.15.7.18.1(5) - Removed 2nd bullet in this section concerning the add date on the history sheet to align with URF IRM 3.17.10.

Effect on Other Documents

IRM 3.17.15, Accounting Reports Analyst-Responsibilities, "dated September 23, 2014 (effective October 1, 2015)" is superseded. The following Interim Procedural Updates (IPU’s), issued between October 20, 2014 through June 10, 2015, have also been incorporated into this revision: 14U1504,15U0215, 15U0365, and 15U0997.

Audience

This IRM provides instructions for use by the Accounting functions and the reports analysts at the Submission Processing campuses.

Effective Date

(10-01-2016)

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

Overview

  1. The reports analyst specialist is assigned to the Accounting Operation. This position is the central point of information and coordination for all Accounting reports and Accounting related issues. The duties of this position will cover areas in accounting and tax account functions. The reports analyst specialist will be the liaison to: Unpostables, Rejects, Errors, Receipt and Control, Taxpayer Advocate Service, Bureau of Fiscal Service (BFS), Compliance, Taxpayer Assistance Centers (TAC), Accounts Management, Headquarters and Chief Financial Office (CFO) staff.

  2. 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.

Responsibilities of the Reports Analyst

  1. The reports analyst will review and analyze various accounting reports for accuracy and time-line of submission and become familiar with all Accounting IRMs.

  2. The reports analyst will monitor the RRACS (Redesigned Revenue Accounting Control System) generated and manually-prepared accounting reports to identify any error conditions, operational problems, or unusual trends.

  3. The reports analyst will ensure files, records, documents and documentation are in compliance with IRM guidelines within the Accounting programs.

  4. All required reviews performed by the Reports Analyst throughout this IRM should be retained for ninety days unless stated otherwise for specific reviews.

Internal Management Controls

  1. In accordance with Management Accountability Review regulations, managers are responsible for ensuring that internal controls are effective and efficient in day to day operations and safeguard against waste, fraud and abuse. This is accomplished by conducting operational or management control reviews to identify weaknesses and mitigate known risks within the managers' realm of responsibility.

  2. Managers must perform program or "spot" reviews for accuracy and completeness. Problems identified should be discussed with the appropriate functional area for corrective action.

  3. At least one program review should be performed and documented each quarter by the manager, lead or the reports analyst.

References

  1. The following sections list references that will be helpful when using the IRM.

Glossary of Accounting Terms

  1. The following are the terms that will be used throughout this IRM.

    TERM DEFINITION
    Abatement The reduction or elimination of an assessment.
    Accounting An information system that measures, processes, and communicates financial information about an identifiable economic entity.
    Account Balance The difference in dollars between the total debit footing and total credit footing of an account.
    Accounting Cycle Sequence of steps followed in the accounting process, from analyzing transactions to preparing financial statements and closing the accounts.
    Accounting Period Time covered by financial statements, which can be for any length of time but is usually annual, quarterly or monthly. The annual financial statements may be on a calendar or fiscal year basis.
    Accrual The recognition of an expense that has been incurred or a revenue that has been earned but that has not yet been recorded.
    Accrual Accounting The attempt to record the financial effects on an enterprise of transactions and other events in the periods in which these transactions and events occur rather than only in periods in which cash is received or paid by the enterprise.
    Accrued Expenses Expenses that have been incurred but are not recognized in the accounts, necessitating an adjusting entry; unrecorded expenses.
    Adjusted Trial Balance A trial balance prepared after all adjusting entries have been posted to the accounts.
    Adjusting Entities (Adjustments) Entries made to apply accrual accounting to transactions that span more than one accounting period.
    Agency Location Code (ALC) Eight digit Treasury identifier assigned by Bureau of Fiscal Service (BFS) for Treasury reporting purposes. The first 2 digits identify the department or agency, the third and fourth digits identify the particular bureau within the department, and the remaining 4 digits identify the particular agency account section within that bureau.
    Appropriation An act of Congress that provides budget authority to Federal Agencies to incur obligations and to make payments out of the Treasury.
    Appropriation Symbol Former name of the Treasury Account Symbol. Treasury designations for proper assignment and reporting of monies.
    Assets Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
    Assessment Taxes assessed, penalties, and interest charged to an account.
    Assessment Statute Expiration Date (ASED) The date the statutory period of time for assessing tax ends. The time frame for assessing tax is normally three years from the due date, or three years from the date the return is filed, whichever is later. IRC Section 6501.
    Attributes Information appended to a financial transaction or account that identifies such things business object class, federal-non federal as in Frontier attributes.
    Audit Trail The documentary evidence of written approval by key people in a business in routinely reviewing and verifying expenditures before a payment is made.
    Balance Sheet The balance sheet presents, as of a specific time, amounts of future benefits owed or managed by the reporting entity (assets), amounts owed by the entity (liabilities), and amounts which comprise the difference (net position).
    Batch Process Computer processing of business transactions and preparation of financial reports in which processing tasks are scheduled in a logical order.
    Business Object Class (BOC) Object classes describe the service or article for which obligations are first incurred, regardless of the purpose, function, or program served.
    Chart of Accounts A numbering scheme that assigns a unique number to each account to facilitate finding the account in the ledger.
    Classification The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class application.
    Closing (Closeout) Entries Journal entries made at the end of the accounting period that set the stage for the next accounting period by clearing the normal (temporary) accounts of their balances.
    Collection Statute Expiration Date (CSED) The date the statute expires for collection of tax, penalty or interest. The CSED is ten (10) years from the assessment date 23C date) of the posting of the original return (transaction code (TC) 150).
    Compound Entry A journal entry that has more than one debit and /or credit entry.
    Contra Account An account whose balance is subtracted from an associated account in the financial statements.
    Control Account An account in the general ledger that summarizes the total balance of a group of related accounts in a subsidiary ledger.
    Current Assets Cash or other assets that are reasonably expected to be realized in cash, sold or consumed during a normal operating cycle of a business or within one year if the operating cycle is shorter than one year.
    Current Liabilities Obligations due within the normal operating cycle of the business or within one year, whichever is longer.
    Custodial Detail Data Base (CDDB) The 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 into the RRACS general ledger. It has also been expanded to include refund transactions.
    Daily Posting Summary This report summarizes each accounting transaction that successfully posted to, and updated the database. This listing will be considered the transaction journal for accounting purposes, and the permanent record for research, audit trails, etc.
    Debit Voucher SF 5515 - summary document used by a bank to control returned dishonored checks or to make adjustments to deposit tickets.
    Deposit Ticket SF 215/SF 215A - summary document issued by a bank for the purpose of summarizing and classifying collections received for a specific deposit date.
    Disbursement Accounts Series of accounts that record monies disbursed as refunds of previously collected revenue or funds.
    Document Locator Number (DLN) The DLN is a controlled number assigned to every return or document input through the Automated Data Processing (ADP) system. The fourteenth (last) digit is the year of processing and is assigned by the Campus computer at the time of the original input. The DLN is used to control, identify, and locate documents processed in the ADP system.

    Note:

    The format for a DLN is as follows:

    • First 2 digits - Filing Location Code (FLC)

    • Third digit - Tax Class

    • Fourth and Fifth digits - Document Code (Doc Code)

    • Sixth, Seventh and Eighth digit - Julian Date

    • Ninth, Tenth and Eleventh digits - Block Number

    • Twelfth and Thirteenth digits - Serial Number

    • Fourteenth digit - Year the DLN was assigned

    Earned Income Tax Credit (EITC) The EITC is a tax credit for certain people who work and have earned income.
    End of Day Routine The process used to ensure that the database is in balance at the end of each work day and ready to be backed up at Enterprise Computing Center (ECC) Detroit. Daily reports are also generated.
    Enterprise Computing Center (ECC) The computing site primarily responsible for maintenance of the Master File records for each taxpayer, and for the electronic processing of related inputs and outputs.
    Erroneous Refund Statute Expiration Date (ERSED) Expires two years from the date of the refund (T C 846/840) if caused by the IRS or five years from the date of the refund (TC 846/840) when it is proven that the refund was issued due to fraud or misrepresentation of material fact by the taxpayer.
    Expenses Outflows or other using up of assets or incurrence of liabilities from delivering or producing goods, rendering services, or carrying out of other activities that constitute the entity's ongoing major or central operations.
    FACTS ll Trial Balance The Federal Agencies' Centralized Trial-Balance System (FACTS ll) is a computer program that allows agencies to submit one set of accounting data. This data includes mostly budgetary information that is required for the Report on Budget Execution and Budgetary Resources (SF 133), the End-Year Closing Statement (BFS 2108), and much of the initial data that will appear in the prior year column of the Program and Financing (P&F) Schedule of the President's Budget.
    Federal Financial Management Improvement Act (FFMIA) of 1996 Public Law 104–208, Title Vlll (31 USC. 3512 note) was intended to advance Federal financial management by ensuring that federal financial management systems can and do provide reliable, consistent disclosure of financial data, and that they do so on a basis that is uniform across the Federal government from year to year consistently using professionally accepted accounting standards.
    Federal Financial Management System Requirements (FFMSR) FFMSR specifies the mandatory functional and technical requirements that agency financial management systems must meet in order to be considered compliant with Federal standards as mandated by the Federal Financial Management Improvement Act (FFMIA).
    Financial Event Any occurrence having financial consequences to the Federal government related to the receipt of appropriations or other financial resources; acquisition of goods or services; payments or collections; recognition of guarantees, benefits to be provided, or other potential liabilities; or other reportable financial activities.
    Financial Position The economic resources belonging to a company and the claims against those resources at a point in time.
    Financial Reporting Process Ensures that the system provides the basic reports and on-line information access needed to review financial information and to fulfill central agency reporting requirements.
    Financial Statement A presentation of financial data and information, including accompanying notes, derived from accounting records to communicate (at a point in time) an entity's financial position, and (for a period of time) its results of operations and cash flows or changes in financial position.
    Financial Transaction Economic events that affect the financial position of the business entity.
    Fiscal Year Any 12 month accounting period used by an economic entity. For reporting purposes, a fiscal year extends from October 1 through September 30.
    Fiscal Year End Processing The process by which fiscal year end reports are generated after verifying September month-end reports and all nominal account balances are closed out.
    Fixed Assets Another name for long term assets.
    FRONTIER A Treasury Department data warehouse which receives monthly uploaded financial accounting and budgetary data from subordinate bureaus and other reporting entities within the Department. A data warehouse is defined as a coordinated, architected, and periodic copying of data from many sources inside an organization into an environment optimized for analytical and information processing.
    General Ledger The book or file, which contains all or groups of the companies accounts.
    General Ledger Account The basic storage unit for accounting data. There is a separate account for each asset, liability and component of owners equity, including revenues and expenses.
    Government On-line Accounting Link System II Government On-Line Accounting Link System II (GOALS II) is the system that allows BFS to receive agency accounting data and forward it to various systems within BFS for final processing and to distribute agency accounting reports.
    Health Coverage Tax Credit (HCTC) The Trade Act of 2002, enacted by Congress in August of 2002, created the Health Insurance Tax Credit (HITC) that is now referred to as the Health Coverage Tax Credit (HCTC). Most tax credits are paid out when you file your federal taxes. However, health plan premiums can be expensive and some people need help to pay them each month as they become due instead of when they file their taxes. The monthly HCTC allows you to receive the HCTC in the form of payment to your health plan on a monthly basis as your premium payments become due.
    Intragovernmental Payment and Collection System (IPAC) Intragovernmental Payment and Collection System. All IPAC receipts are reflected in Account 2910. IPAC amount will be reported on SF 224.
    IPACD This report tracks IPAC disbursements by Document (Doc) ID waiting to be applied. The IPACD reports lists IPAC disbursements by Accounts 4970, 4975, and 4985. Each transaction is listed by Doc ID, beginning balance, adjusted amount, and current balance. This report is produced monthly. The current month activity equals the current month balance on the Daily Trial Balance report.
    IPACR This report tracks IPAC receipts by document number, that are waiting to be applied. The IPACR report lists IPAC receipts by Accounts 4970, 4975, and 4985. Each transaction is listed by Doc ID, beginning balance report. This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance report.
    IRS Account RRACS General Ledger Account
    Joint Financial Managers Improvement Program (JFMIP) The JFMIP was a joint undertaking of the: U.S. Department of the Treasury; Government Accountability Office (GAO); Office of Management and Budget (OMB); and Office of Personnel Management (OPM), working in cooperation with each other, with other agencies, and with the private sector, to improve financial management in the Federal Government.
    Journal A chronological record of all transactions; place where transactions are first recorded.
    Journal Entry A separate entry in a journal used to record a single transaction.
    Journalizing The process of recording transactions in a journal.
    Ledger A book or file of all a company's accounts, arranged as in the chart of accounts.
    Ledger Classification This a unique identification contained in RRACS indicating how money or items post to the IRS general ledger accounts, tax class, appropriation symbols, recap and Net Tax Refund Report (NTRR) line numbers, deposit source codes, and type of input documents.
    Ledger Entry An entry into the General Ledger.
    Liabilities Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
    Memos Written records supporting journal entries. Credit memos support credits, while debit memos support debit entries.
    Month End Closing When all transactions for a particular accounting month have been input, procedures must be followed to close out the month, generate reports, and set up the database for a new month's transactions. Due to the initiative set forth by the Secretary of the Treasury, these procedures should be started on the second workday after the close of the accounting month.
    Nominal Account Accounts showing the accumulation of revenue and expenses for only one accounting period. Nominal accounts roll into Account 9998 at the end of each fiscal year leaving this account at zero.
    Non-Tax Receivables The net total of non-tax monies posted on Master File and CADE that have an outstanding module balance.
    Normal Balance The balance that one would expect an account to have; the usual balance of an account; also the side (debit or credit) that increases the account.
    Notes to the Financial Statements A section of the corporate annual report containing notes that aid the user in interpreting the financial statements.
    Office of Management and Budget (OMB) Circular A-127, Financial Management Systems Requires financial management systems to reflect an agency-wide financial information classification structure that is consistent with the U.S. Standard General Ledger (SGL), provides for tracking of specific program expenditures, and covers financially related information.
    Opening Balances Beginning balances for all real accounts at the start of the fiscal year.
    OTCnet Over the Counter Network the application that automates the over-the-counter deposit process.
    Other Assets All of the assets owned by a company other than current assets and property, plant, and equipment.
    Posting The process of transferring journal entry information from the journal to the ledger.
    Posting Number Same as a journal number assigned by the system, comprised of a window number (3 digits), the system date (MMDDYY), and a number (3 digits) increments each time a transaction is posted using the window (e.g., 210–102201–0001).
    Post Closing Trial Balance A trial balance prepared at the end of the accounting period after all adjusting and closing entries have been posted. It serves as the final check in the balance of the ledger.
    Real Account Also called permanent accounts, are the accounts; asset, liability, reserve and capital; whose balances are not canceled out at the end of an accounting period, but are carried over to the next period. These accounts appear on the post-closing trial balance and the statement of condition (balance sheet).
    Receipt Account Series of accounts used to record the receipt of and the accountability for monies received for deposit into the Treasury. The accounts are broken down by type of receipt received, and represented by the Treasury Account Symbol (TAS).
    Reclassification Adjustments made to correct classifications of revenue.
    Reconciliation The act of ensuring that the total of the monetary balance of the appropriate general ledger account agrees with the balance in the related subsidiary account and the variances are identified and accounted for.
    Redesigned Revenue Accounting Control System (RRACS) The fully automated system used to provide accounting control for all revenue accounting transactions. The database, located at ECC-Detroit, consists of general ledger account, plus a variety of internal records used for balancing and reporting.
    Refund / Disbursement Record monies paid out as refunds of previously collected revenue of funds. Disbursements are recognized at the time of payment or confirmed by the Disbursing Office.
    Refund Statute Expiration Date (RSED) The RSED is generally three years from the Return Due Date (RDD) for prepaid credits if a return was filed, or two years from the payment date for other payments whichever is later.
    Reliability The qualitative characteristic of accounting information that has the traits of representing truthfulness, verifiability, and neutrality.
    Revenue Inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.
    Revenue Receipts Collection of taxes, penalties, interest, and costs assessed or assessable against taxpayers, and payments on accepted offer In compromise (OIC), are classified as revenue receipts. Amounts received as payment of court fines, court costs, forfeitures, penalties incident to, or imposed for, violation of applicable laws from the redemption of property acquired by the government, and receipts from consummated sales of acquired property, will also be classified for deposit as revenue receipts.
    Reversing Entry Entry made at the beginning of the accounting period after the closing of records for the prior accounting period; it reverses certain adjusting entries and is designated to aid in routine bookkeeping for the next accounting period.
    Seized Property (Assets) Monetary instruments, real property, and tangible personal property of others, including illegal drugs, contraband, and counterfeit items seized by authorized law enforcement agencies as a consequence of various laws, in the actual or constructive possession of the custodial agency.
    Statement of Custodial Accounts (SOCA) Financial report required for entities that collect non-exchange revenue for the General Fund of the Treasury, a trust fund, or other recipient entities.
    Subsidiary Account Subsidiary accounts afford necessary details in support of certain general ledger accounts.
    Subsidiary Ledger A ledger separate from the general ledger; contains a group of related accounts the total of whose balances equal the balance of a controlling account in the general ledger.
    Tax Class The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class of application.
    • Tax Class 1 - Withholding and Federal Insurance Contribution Act (FICA)

    • Tax Class 2 - Individual Income

    • Tax Class 3 - Corporation Income

    • Tax Class 4 - Excise

    • Tax Class 5 - Estate and Gift

    • Tax Class 6 - Non-Master File

    • Tax Class 7 - Railroad Retirement (RRT)

    • Tax Class 8 - Federal Unemployment Tax (FUTA)

    Tax Period A six digit number which represents the end of the tax liability year for a return; and is designated by the year and month.
    Taxes Receivable Amounts that the taxpayers have agreed to or the courts have set. Taxpayer voluntarily files a return without full pay; taxpayer agrees with the IRS assessment; amount owed was determined by Appeals or Tax Court; taxpayer enters into an installment agreement; taxpayer files an OIC; or taxpayer starts paying the assessment.
    Trace Identification (ID) The CDDB mechanism that identifies each deposit ticket and its corresponding payments is a 20 digit number made from 14 characters related to the corresponding deposit ticket and 6 characters representing the Detail Payment Transaction Record for an individual payment.
    Transaction Type As referenced in the posting model, a transaction type provides descriptive information as to the kind of transaction being processed on a specific window or batch process. Examples are deposits, reclassification, regular refunds, refund reversals, etc.
    Treasury Account Symbol Formerly the appropriation symbol, the account number assigned by Treasury to classify agency transactions; Treasury account symbol structure that includes the following components defined by Treasury and OMB: sub class, agency code, hyphen (when co-owner is not null), transfer agency, fiscal year, main account number and sub account number.
    Treasury Information Executive Repository (TIER) TIER is a Department of the Treasury data warehouse, which receives monthly, quarterly, and fiscal year-end financial and budget data in the form of a trial balance from Treasury bureaus and other reporting entities within the Department of the Treasury. The data is uploaded and validated based on TIER's defined validation checks. The uploaded data is initially stored in a TIER holding area until bureaus verify its accuracy. Replaced by FRONTIER.
    Trial Balance A listing of accounts in the general ledger with their debit or credit balances in respective columns; used to test the equality of debit and credit balances in the ledger.
    Twenty-Three C Date (23C) The date a liability is assessed.
    USSGL (SGL) The U.S. Standard General Ledger includes a chart of accounts and technical guidance established to support the consistent recording of financial events as well as the preparation of standard external reports that are required by the central agencies, such as OMB and Treasury. The Treasury Financial Manual (TFM) USSGL Supplement provides: a list of the accounts (i.e., the chart of accounts); descriptions of each account; a listing of transactions processed by Federal agencies; the posting models, including debit and credit pairs, for each type of transaction; the USSGL attributes that are an integral part of the USSGL; and crosswalks from the USSGL to various external reports, such as the SF 133 and the actual year column of the Program and Financing Schedule in the President's budget. The OMB policies regarding the USSGL are in OMB Circular No. A-127, Policies and Standards for Financial Systems. Specifically, the A-127 requires that agencies record financial events throughout the financial management system using the USSGL at the transaction level. This is a legal requirement.
    Window An area of the screen with visible boundaries within which information is displayed. A window can be smaller than or the same size as the screen. Windows can appear to overlap on the screen.
    Worksheet A type of working paper that is used as a preliminary step in and aid to the preparation of financial statements.
    Write-Off The amount of assessments that the entity still has statutory authority to collect at the end of the period, but has no future collection potential and are therefore defined as write-offs.

Acronyms

  1. The following are the abbreviations (acronyms) that will be used throughout this IRM.

    ACRONYM DESCRIPTION
    ALC Agency Location Code
    ANMF Automated Non-Master File
    BMF Business Master File
    CADE Customer Account Data Engine
    CARS Central Accounting Reporting System
    CDDB Custodial Detail Database
    CFO Chief Financial Office
    CFY Current Fiscal Year
    CRL Control Record Listing
    DBA Data Base Administrator
    DCF Dishonored Check File
    DLN Document Locator Number
    DMF Debtor Master File
    DOJ Department of Justice
    DPS Daily Posting Summary
    DT Deposit Ticket
    DTRIAL Daily Trial Balance
    DV Debit Voucher
    ECC Enterprise Computing Center
    EFTPS Electronic Federal Tax Payment System
    EITC Earned Income Tax Credit
    EIN Employer Identification Number
    EOD End of Day
    EOM End of Month
    EOMF Exempt Organization Master File
    EP/EO Employee Plans/Exempt Organization
    ERSED Erroneous Refund Statute Expiration Date
    FACTS ll Federal Agencies Centralized Trial Balance System ll
    FFMSR Federal Financial Management System Requirements
    BFS Bureau of Fiscal Service
    FPLP Federal Payment Levy Program
    FRC Federal Records Center
    FTRIAL Future Trial Balance
    GAO Government Accountability Office
    GMF Generalized Mainline Framework (pipeline processing)
    GUF Generalized Unpostables Framework
    HCTC Health Coverage Tax Credit
    HQ Headquarters
    IDRS Integrated Data Retrieval System
    IMF Individual Master File
    IPAC Intragovernmental Payment and Collection System
    IRA Individual Retirement Account
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    JFMIP Joint Financial Managers Improvement Program
    MF Master File
    MTRIAL Monthly Trial Balance
    NCC National Computing Center
    NMF Non-Master File
    NTRR Net Tax Refund Report
    OIC Offer in Compromise
    OMB Office of Management and Budget
    P&A Planning and Analysis
    PFY Prior Fiscal Year
    PJ Pre-Journalized
    RACR Reciprocal Accounting Control Record
    RAS Revenue Accounting System
    RCA Reasonable Cause Assistant
    RFC Regional Financial Centers
    RAC Resident Agent in Charge
    RRACS Redesigned Revenue Accounting Control System
    RRPS Residual Remittance Processing System
    SC Service Center (now referred to as "Campus" )
    SCCF Service Center Control File
    SDC Scheme Development Center
    SF Standard Form
    SF 133 Report on Budgetary Execution
    SF 224 Statement of Transactions
    SGL Standard General Ledger
    SOCA Statement of Custodial Activity
    SSN Social Security Number
    TAFS Treasury Appropriation Fund Symbol
    TAS Treasury Account Symbol
    TC Transaction Code
    TFM Treasury Financial Manual
    TIN Taxpayer Identification Number
    TREASURY US Department of Treasury
    UA Unpaid Assessments
    URF Unidentified Remittance File
    USSGL United States Standard General Ledger
    XSF Excess Collection File

Forms

  1. The following are the forms that will be referenced throughout this IRM.

    Form # Form Title
    Form 1081 Voucher and Schedule of Withdraws and Credits
    Form 1184 Refund Cancellation Schedule
    Form 1331 Notice of Adjustment
    SF 215A Deposit Ticket
    Form 2158 Credit Transfer Voucher
    SF 224 Statement of Transactions
    Form 2424 Account Adjustment Voucher
    Form 3753 Manual Refund Posting Voucher
    Form 3809 Miscellaneous Adjustment Voucher (non-revenue receipts)
    Form 3996 Tax Revenue Receipts Recap
    Form 3997 Reconciliation of General Ledger Accounts
    Form 514B Tax Transfer Schedule
    SF 5515 Debit Voucher
    Form 5792 Request for IDRS Generated Refund (IGR)
    Form 6168 General Ledger Reconciliation with National Computing Center (NCC) Reciprocal Accounting Control Record (RACR)
    Form 6652 Statement of Difference for Deposit or Disbursement Transactions
    Form 813 Document Register
    Form 8166 Input Reconciliation Sheet
    Form 8758 Excess Collections File Addition

RRACS Reports

  1. The following are reports that will be referenced throughout this IRM.

    REPORT # REPORT NAME
    003 DTRIAL, Daily General Ledger Trial Balance
    004 MTRIAL, Monthly General Ledger Trial Balance
    014 Service Center Revenue Receipts Classification Summary
    017 Deposit Tickets and Debit Vouchers Reported on SF 224
    018 Historical SF 224, Statement of Transactions
    019 SC Open Daily Wire List
    020 SF 224, Statement of Transactions
    023 NTRR, Net Tax Refund Report-Submission Processing Campus/For ALC/Area Office (Month Ending and Fiscal Year to Date)
    025 Form 2162, Summary of Assessment Certificates Issued
    027 FBA, Fund Balancing Account records
    035A DTDV Match Treasury Records
    035B DTDV Unmatched Treasury Records
    050 Net Tax Refund Comparison Report
    051 General Ledger Account Details
    072 Service Center Deposit Ticket Classification Report
    128 Service Center Informant Reward
    131 Erroneous Refund Inventory Report
    132 Unapplied External Leads Report
    155 Identity Theft, Erroneous Refunds Inventory Report
    156 Payment Over Cancellation Erroneous Refund Inventory Report
    157 Return Preparer Misconduct Erroneous Refund Inventory Report
    576 Electronic Check Processing (ECP) Deposit Discrepancy Support List
    577 Loss and Shortages

Subsidiary Accounts

  1. The following are subsidiary accounts that will be referenced throughout this IRM.

    Account # Account Name
    1321 Non Master File (NMF) Notice (Cincinnati Only)
    1322 NMF Taxpayer Delinquent Accounts (Cincinnati Only)
    1324 NMF Taxpayer Delinquent Accounts Under Tolerance (Cincinnati Only)
    1360 NMF Installment Agreement Accounts (Cincinnati Only)
    1371 NMF Offers in Compromise (OIC )(Cincinnati Only)
    1389 NMF Suspense (Cincinnati Only)
    1400 Tax Accounts Transferred Out
    1510 Other Receivables, Regular
    1530 Employee Fraud Case
    1535 Court Case Erroneous Refunds (Kansas City Only)
    1540 Non-Court Case Erroneous Refunds
    1543 Payment Over Cancellation Erroneous Refunds
    1545 Identity Theft Erroneous Refunds
    1547 Return Preparer Misconduct Erroneous Refunds
    1600 Manual Assessments, Transit Account
    1710 Dishonored Check File
    1840 Other Receivables,. Inactive
    2320 Miscellaneous Receipts
    2330 EP/EO User Fees (Cincinnati Only)
    2335 Miscellaneous User Fees (Cincinnati and Ogden Only)
    2340 Photocopy Fees
    2350 Public Debt
    2355 Federal Court Ordered Restitution (Kansas City Only)
    2360 Conscience Fund
    2380 Original Installment Agreement
    2385 Reinstated Installment Agreement
    2395 OIC User Fees (Cincinnati, Memphis, and Brookhaven Only)
    4120 SC Suspense for the Master File (MF) - Business Master File (BMF)
    4130 ECC Unpostable - BMF
    4220 SC Suspense for the MF - IMF
    4230 ECC Unpostable Documents - IMF
    4420 SC Suspense for NMF
    4425 EFTPS/FPLP Suspense for NMF (Ogden Only)
    4430 Unpostable Documents - NMF
    4440 Assessment and Abatement Suspense - NMF (Cincinnati Only)
    4610 Unapplied Advance Payments (Cincinnati Only)
    4615 IRC Section 847, Special Estimated Tax Payments (Ogden Only)
    4620 Unidentified Remittances
    4625 Insolvency Suspense
    4710 Offers in Compromise (Cincinnati Only)
    4720 Sale of Seized Property (Ogden Only)
    4730 Miscellaneous Deposit Fund
    4740 Deposit Funds in Transit
    4750 Anti-Drug Special Funds Liability
    4755 Liability for Informant Reward (Ogden Only)
    4765 EFTPS Miscellaneous Suspense (Ogden Only)
    4900 Revenue Credits in Transit to Other SP Campuses
    4910 Disbursement Loss
    4970 Unapplied Refund Reversals
    4971 Unapplied External Leads (Fresno and Cincinnati Only)
    4975 Liability Department of Justice (DOJ) Receipts (Kansas City Only)
    6310 Miscellaneous Fees
    6400 Miscellaneous Revenue Collections
    6510 Over-Assessments Credited
    6565 Refund Cancellation Credits Allowed
    6570 Substantiated Credits Allowed
    6575 Overpayment Interest Allowed
    6700 Foreign Check Collection Cost and Miscellaneous Bank Charges
    6800 Excess Collections
    6801 Expired External Leads Write-Off (Fresno and Cincinnati Only)
    6905 Identity Theft Erroneous Refunds Write-Off
    6907 Return Preparer Misconduct Erroneous Refunds Write-Off
    6920 Disbursement Write-Off
    6950 DOJ Civil Debt Collection Holdback (Kansas City Only)
    6985 Profit and Loss on Sale of Acquired Property (Ogden Only)
    7610 Embezzlement and Thefts
    7620 Unexplained Losses
    7650 Deposit Discrepancies

Treasury Accounting Symbols (TAS)

  1. List of TAS for TIER Reporting identifies the TAS associated with each Standard General Ledger (SGL) account. The table identifies each TAS code, TAS name, and TAS category. These TAS codes will be used in the Posting Model as well as in the records for the TIER files.

    TAS CODE TAS NAME TAS CATEGORY
    200101 Withheld Individual Income and FICA Taxes General Fund Receipt
    200110 Individual Income Tax, Other General Fund Receipt
    20–0111 Corporation Income and Excess Profit Taxes General Fund Receipt
    200121 Federal Unemployment Tax Act Taxes General Fund Receipt
    200130 Railroad Retirement Tax Act Taxes General Fund Receipt
    200152 Excise Taxes General Fund Receipt
    200153 Estate and Gift Taxes General Fund Receipt
    201060 Forfeitures of Unclaimed Money and Property General Fund Receipt
    201099 Fines, Penalties, and Forfeitures, Not Otherwise Classified General Fund Receipt
    201210 Contributions to Conscience Fund General Fund Receipt
    203220 General Fund Proprietary Receipts, Not Otherwise Classified, All Other General Fund Receipt
    20–2411 EP/EO User Fees Receipts General Fund Receipt
    20F3820.009 Unidentified Cash Collections, Federal Tax Deposits, Internal Revenue Service General Fund Receipt
    20F3820.017 Unidentified Cash Collections, Federal Tax Deposits, Internal Revenue Service General Fund Receipt
    20F3820.018 Unidentified Cash Collections, Federal Tax Deposits, Internal Revenue Service General Fund Receipt
    20F3820.029 Unidentified Cash Collections, Federal Tax Deposits, Internal Revenue Service General Fund Receipt
    20F3820.049 Unidentified Cash Collections, Federal Tax Deposits, Internal Revenue Service General Fund Receipt
    20F3844 DOJ IPAC Suspense General Fund Receipt
    20F3875.011 Budget Clearing Account (suspense) General Fund Receipt
    20F3880.009 Unavailable Check Cancellations and Overpayments (suspense) General Fund Receipt
    20F3885.011 Undistributed Intra-governmental Payments General Fund Receipt
    20X0903 Refunding Internal Revenue Collections (indefinite) General Fund Expenditure
    20X0904 Refunding Internal Revenue Collections, Interest (indefinite) General Fund Expenditure
    20X0905 Payment Where Recovery Rebate Exceeds Liability for Tax, Internal Revenue Service General Fund Expenditure
    20X0906 Payment Where Earned Income Credit Exceeds Liability for Tax, Internal Revenue Service General Fund Expenditure
    20X0922 Payment Where Child Credit Exceeds Liability for Tax, Internal Revenue Service General Fund Expenditure
    20X0923 Payment Where Health Care Credit Exceeds Liability for Tax, Internal Revenue Service General Fund Expenditure
    20X0929 Payment Where Alternative Minimum Tax Credit Exceeds Liability for Tax General Fund Expenditure
    20X0930 Payment Where Tax Credit to Aid First Time Home Buyers Exceeds Liability for Tax General Fund Expenditure
    20X0931 Payment Where Certain Tax Credits Exceed Liability for Corporate Tax General Fund Expenditure
    20X5099 Reimbursement to State and Local Law Enforcement Agency, Internal Revenue Service Special Fund Expenditure
    20X5432.1 New Installment Agreement User Fees General Fund Expenditure
    20X5432.3 Reinstated Installment Agreement User Fees General Fund Expenditure
    20X5432.4 OIC User Fees General Fund Expenditure
    20X5432.5 EP/EO User Fee Increase 990 CD User Fees General Fund Expenditure
    20X5432.6 Disbursement Reserved
    20X5433 Informant Payments, Internal Revenue Service Special Fund Expenditure
    20X6163 Proceeds and Payments of Enrollee's Share of the Health Coverage Tax Credit, Internal Revenue Service, Treasury Deposit Fund Expenditure
    20X6511.009 Seized Cash, Internal Revenue Service Deposit Fund Expenditure
    20X6737 Internal Revenue Collections for Northern Marianna Islands Deposit Fund Expenditure
    20X6738 Cover-over Withholding - U.S. Virgin Islands Deposit Fund Expenditure
    20X6740 Cover-over Withholding - Guam Deposit Fund Expenditure
    20X6741 Cover-over Withholding - American Samoa Deposit Fund Expenditure
    20X6879.009 Unapplied Collections, Internal Revenue Service Deposit Fund Expenditure

Related Internal Revenue Manuals

  1. The following IRMs provide additional instructions.

    IRM Number Title
    IRM 3.0.167 Losses and Shortages
    IRM 3.5.10 Remittance Transaction Research (RTR) System
    IRM 3.8.44 Campus Deposit Activity
    IRM 3.8.45 Manual Deposit Process
    IRM 3.8.46 Discovered Remittance
    IRM 3.8.47 Manual Deposit Process for Field Offices
    IRM 3.10.5 Batch/Block Tracking System (BBTS)
    IRM 3.10.72 Receiving, Extracting and Sorting
    IRM 3.10.73 Batching and Numbering
    IRM 3.17.5 Hardcore Payment Tracers
    IRM 3.17.10 Dishonored Check File (DCF) and Unidentified Remittance File (URF)
    IRM 3.17.20 The Refund Intercept Program
    IRM 3.17.21 Credit and Account Transfers
    IRM 3.17.30 SC Data Controls
    IRM 3.17.41 Accounting and Operating Reports
    IRM 3.17.46 Automated Non-Master File (Accounting)
    IRM 3.17.50 Submission Processing RRACS Procedures
    IRM 3.17.63 Interim Accounting Control System
    IRM 3.17.64 Accounting Control General Ledger Policies and Procedures
    IRM 3.17.79 Accounting Refund Transactions
    IRM 3.17.80 Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations
    IRM 3.17.220 Excess Collections File
    IRM 3.17.221 Enterprise Computing Center Data Controls
    IRM 3.17.243 Miscellaneous Accounting
    IRM 3.17.244 Manual Assessments
    IRM 3.42.5 IRS e-file of Individual Income Tax Returns
    IRM 21.4.1 Refund Research
    IRM 21.4.2 Refund Trace and Limited Payability
    IRM 21.4.3 Returned Refund Releases
    IRM 21.4.4 Manual Refunds
    IRM 21.4.5 Erroneous Refunds

External Subsidiary Balancing Operations

  1. The total of the individual account balances comprising each subsidiary record must equal the balance in the RRACS subsidiary control. This relationship will be verified by monthly balancing operations. Any difference must be investigated, resolved, or shown and explained as a reconciling figure on Form 3997, Reconciliation of General Ledger Accounts.

  2. Although monthly and quarterly balancing is prescribed in these instructions, it need not be performed at the end of each month. Month-end balancing dates, however, provide the easiest recognizable date wherein balances composed of the same transactions can be computed for both the RRACS and external subsidiary records, resulting in fewer "float" items when balancing. Month-end balancing dates are therefore recommended for all subsidiary records except those with a large number of individual accounts.

  3. When it is necessary to prepare adding machine accumulations of the individual subsidiary accounts, the tabulation will be made on proof sheets, rather than on machine tapes. Any closed account record will be withdrawn from the open files and held for proper disposition after the balancing has been completed. Each adding machine proof sheet will be labeled to indicate the subsidiary record involved, the date of the last posting, and the name of the adding machine operator. After balancing, the proof sheets containing the adding machine tabulations will be filed or maintained in books until they can be retired or given other disposition authorized by their applicable record control schedule.

  4. Computer Listing Option - The requirement to balance source documents to computer listings relates only to those subsidiary accounts that are maintained on a separate computer program. The computer program files are intended to facilitate research and balancing operations, not to replace the source documents that are still considered the subsidiary file supporting the general ledger account. Due to the volume of supporting documents, it became increasingly difficult to tabulate and balance these documents monthly. The listing totals are accepted on an interim (monthly) basis until the actual source documents can be tabulated quarterly. (i.e.,XSF, DCF, URF)

  5. Any subsidiary account residing on Integrated Data Retrieval System (IDRS), Generalized Mainline Framework (GMF), or Generalized Unpostables Framework (GUF) does not require the original documents to be tabulated. The computer generated control listings from these four above mentioned systems are sufficient for Accounts 1710, 4120, 4130, 4220, 4230, 4252, 4253, 4300, 4420, 4620 and 6800.

  6. Real Accounts - Accumulate all "open" items. File items which have closed during the report month in "closed" file after the account is balanced.

  7. Nominal Accounts - Accumulate all open items that are new for the current fiscal year (CFY), sort and file closed items which are prior fiscal year (PFY) items that were still open at the beginning of the current fiscal year. After the account is balanced, file any new CFY items which closed during the report month in the "closed" file. File any PFY items that have been closed during the report month in a special folder. At the end of the fiscal year, purge the file by filing all items in the "closed" file.

  8. The balancing group will balance all subsidiary records. Generally accepted Accounting Principles and Standards requires separation of duties. External subsidiary balancing operations must be performed by an individual who does not maintain or post to the account. The locating and resolving of differences must be a joint effort between the balancing group, the employee maintaining the subsidiary record, and the control group. If errors are not located after a verification of adding machine runs, an examination of all monthly transactions affecting the account will be necessary. This will require a review and comparison of the General Ledger Detail Record and subsidiary record postings.

  9. NMF Accounts may be individually listed on proof sheets immediately prior to establishment in a NMF status control in RRACS. Each listing will be labeled to indicate the NMF status control involved balanced in accordance with procedures in IRM 3.17.46, Automated Non-Master File Accounting. The totals for any documents remaining in the Manual Assessments, Transit account will be listed on a separate proof sheet. The combined total of the two proof sheets should be balanced to Account 1600 in the RRACS system.

  10. Balancing of the external subsidiaries will not delay the month-end closing runs for RRACS. Any necessary corrections due to external subsidiary balancing will be made in the following month.

Transfer of Accountability of Submission Processing Site Directors

  1. In accordance with the Government Accountability Office (GAO) accounting principles and standards, Headquarters (HQ) requires accountable officers to render complete accounting documentation covering the full extent of their financial accountability, as of the close of business of the last day as the accountable officer for their jurisdiction.

  2. When a change of Directors occurs, ensure an action plan has been prepared as described in IRM 3.0.167, Losses and Shortages, and coordinate with the Planning and Analysis (P&A) staff to complete the transfer of accountability.

  3. Documentation must be maintained in the Submission Processing Sites GAO Site Audit File.

Transfer of Accountability Review Procedures

  1. Review the action plan with the P&A staff analyst.

  2. Ensure that the Accounting information is correct.

  3. Assist in the coordination of meetings with responsible officials to ensure that all actions are completed prior to the target date.

  4. After the transfer is complete:

    • Review the Accountability package for accuracy and completeness.

  5. Accountability package should contain:

    • Director's memo

    • Campus Director's memo

    • General Ledger trial balance

    • Account 7500

    • DO Inventory Detail Report

    • Loss/Shortage Report

    • Form 3996

    • Form 3997

    • Standard Form (SF) 224

    • Copy of the final action plan

On-Site Audit by Government Accountability Office (GAO)

  1. The audit by GAO of the tax refund transactions of the Service will be made at the location where the operations are conducted, and the accounting records are maintained.

  2. Copies of the SF 224, related original refund and check cancellation voucher schedules with any required supporting documents, plus other documents, such as the Regional Finance Center (RFC) confirmation listing, are to be retained in the supporting files in accordance with 44 USC. 3309.

  3. In accounting period order, separate files will be maintained of the refund disbursement and check cancellation schedules, and other documents relating to the monthly SF 224 as follows:

    1. Original SF 1166 OCR

    2. Original SF 1098 (or the Control-D file, RPA 4140, if originals are not provided) , SF 1184, SF 1081, or Form 3813 and

    3. Adjustment documents or explanatory memoranda relating to the correction of errors in a previously prepared SF 224

  4. The following additional records will be made available:

    1. BMF, Individual Master File (IMF), and Customer Account Data Engine (CADE) Recaps of Assessments, Abatements and Other Post-Journalized Transactions

  5. On request by the GAO auditors, specific transcripts will be produced for individual cases selected for verification of refund interest computation. Taxpayer names must be obliterated or removed from transcripts prior to delivery to GAO.

  6. All un-audited records of refund transactions will be retained either in the campus files or the Federal Records Center (FRC) for audit by GAO. Records of refund transaction which have been audited by GAO may be transmitted to the FRC or otherwise retired, or given another disposition authorized by their applicable record control schedule.

  7. Fax copies used in lieu of originals must be photocopied for the GAO file.

    Note:

    Quarterly, the Reports analyst must perform a review to ensure all files referenced above are maintained. Documentation of the review should be maintained for a period of 90 days and include any deficiencies identified and corrective actions taken, as applicable.

Review of Forms and Reports

  1. Monthly the RRACS Team should provide the reports analyst with the month-end reports/forms needed to perform their review.

  2. If necessary the reports analyst can provide a list of the reports needed to the RRACS team.

  3. The reports analyst should have ample time to thoroughly review each end-of month report, sign, date and forward to Operations Manager for their signature and date.

Procedures for End of Month Reports (EOM)

  1. Report 003 - Ensure accounts are in zero balance especially those that do not belong to your campus.

  2. Report 004 - Ensure copy of the status report is also included. Verify the report with any items in reverse status. Check to ensure accounts that do not belong to your campus are in zero balance. If any are found not in zero balance, verify the journals in RRACS are correct with the DBA, and determine action is being initiated to resolve the account balance.

  3. Add Accounts 2320, 2330, 2335, 2340, and 2395 and subtract Account 6310; Balance should be zero, if not research the general ledgers.

    Note:

    Journals done through disbursement window, and no RAS was run, will be off by that amount.

  4. Add Accounts 2310, 2320, 2325, 2345, 2350, 2355, 2360 and 2370, subtract Account 6400; the balance should be zero, if not research the general ledgers.

  5. Add Accounts 4710, 4720 and 4730, subtract Account 7002; and account should zero out, if not research the general ledgers.

  6. Report 017- Ensure Trace ID has correct amount of numbers.

  7. Report 025- Ensure assessment dates are for current month (tape process will include first six days of new month).

  8. Report 0577- Ensure the amount matches with the Accounts 7610, 7620, 7649, and 7650.

  9. A reverse status report explaining the conditions of accounts in reverse status must be reviewed, signed, and dated by the Reports Analyst before being faxed or emailed to CFO.

    Note:

    See IRM 3.17.63.21.6 Redesigned Revenue Accounting Control Section for more details on the Reverse Status report

  10. The final RRACS 020 and 020B Report, CARS Statement of Transactions, and the transmitted CARS Statement of Transactions, posted copy, must be signed and dated by the 5th working day of the month by the Campus Director, or his/her designee, as it reflects the Campus Director's accountability. A signed copy of the final RRACS 020, 020B report, and the signed posted CARS Statement of Transactions copy will be retained at the campus for use by GAO in its site audit

Erroneous Refund Report - Court Cases (RRACS Report 131)

  1. This report assists the Erroneous Refund team to track erroneous refunds by Doc ID. The Erroneous Refund Report lists erroneous refunds by Account 1530 (employee fraud cases), Account 1535 (court cases) (Kansas City Only) and Account 1540 (non-court cases). Each transaction is listed by Doc ID, date, beginning balance, adjustment amount, and current balance.

  2. This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance report.

Unapplied External Leads Report (RRACS Report 0132)

  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

  2. The Unapplied External Leads Report helps the Accounting functions track the status of the External Leads deposits and applications. External Leads are listed on the report by deposit ticket number. This report lists external leads in Account 4971, Unapplied External Leads. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount, and current balance.

IPACD Report (RRACS Report 138)

  1. This report tracks IPAC disbursements (by Doc ID) waiting to be applied. The IPACD report lists IPAC disbursements by Accounts 4970, 4975, and 4985. Each transaction is listed by Doc ID, beginning balance, adjusted amount and current balance.

  2. This report is produced monthly.

Insolvency Suspense Report (RRACS Report 139)

  1. This report tracks insolvency receipts by document numbers that are unclassified, and waiting to be applied to the correct tax class. This report lists the receipts in the Suspense Account 4625. Each transaction is listed by Doc ID, beginning balance, adjusted amounts and current balance.

  2. This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance Report.

Credit Transfer Out (RRACS Report 142)

  1. This report tracks revenue credit in transit to campuses (by Account 4900), by Doc ID and by debit and credit. The Doc ID format is XXXX-XX-XX-XX (Sequence number-SC Transferred Into-Year-SC Transferred From).

  2. This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance Report.

Miscellaneous Deposit Inventory Detail Report (RRACS Report 137)

  1. This report supports the Field Inventory Detail Report. It provides a detailed list of each individual record in the Deposit Fund Liability Account 4730, and the miscellaneous deposit funds for each field.

  2. Deposit Fund Liability Account

    1. Total Miscellaneous Deposit Funds - Lists each Doc ID in order, original prepared date, and balance that is in open status (this report should equal Account 4730).

  3. The report will be sorted in field office order and then in Doc ID order.

  4. This report should be produced monthly and issued to the area that maintains the Form 2236, and quarterly to the Scheme Development Center (SDC) Resident Agent in Charge (RAC), or any other office concerned according to case history, in order to ascertain what disposition should be made of the payments. A response (verification) is required for the reports issued March 31 and September 30.

  5. The area maintaining the miscellaneous deposits will issue a two-way memo to the Resident Agent in Charge. The memo will include taxpayer's name, Employer Identification Number (EIN)/Social Security Number (SSN), tax class, tax period, and amount. Sufficient space should be reserved for a remarks column used for insertion of notations by the office concerned. Responses should be returned to this area within 30 days.

  6. Responses, either agreeing to the inventory report or reconciling any discrepancy, should be forwarded to Accounting within 30 days after receiving the listing. Accounting will ensure that all responses have been received, and will complete reconciliation procedures not more than 60 days after the listing was issued.

  7. This report will be disposed of one year after each semi-annual verification.

Identity Theft Erroneous Refund Inventory Report, RRACS Report 0155

  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

  2. The Identity Theft Erroneous Refund report helps the Erroneous Refund function track identity Theft erroneous refunds by Doc-Id. This report lists erroneous refunds in Account 1545, ID Theft Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount, and current balance.

  3. Report 0155 is available for viewing on RRACS and may be printed as needed.

Payment Over Cancellation Erroneous Refund Inventory Report, RRACS Report 0156

  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

  2. The Payment Over Cancellation (POC) Erroneous Refund Report helps the Erroneous Refund function track POC cases by Doc-Id. This report lists erroneous refunds in Account 1543, Payment Over Cancellation Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount, and current balance.

  3. This report does not need to be printed unless needed or requested.

Return Preparer Misconduct Erroneous Refunds Inventory Report, RRACS Report 0157

  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

  2. The Return Preparer Misconduct (RPM) Erroneous Refund Report helps the Erroneous Refund function tract RPM case by Doc-id. This report lists erroneous refunds in Account 1547, Return Preparer Misconduct Erroneous Refunds. Each transaction is listed by Doc-id, date, beginning balance, adjustment amount, and current balance.

  3. This report does not need to be printed unless needed or requested

Form 3753/Form 5792, Manual Refunds

  1. Weekly perform a random review of Form 3753 and Form 5792. Refer to IRM 21.4.4.4.1 and 21.4.4.4.2 Manual Refunds. A combined total of five, and up to twenty as time allows, Form 5792 and Form 3753 should be randomly selected (current or previously processed) for review of the following.

    • All fields on form completed

    • Verify all dates are complete

    • There should be no mark overs, strike through, or white out. Only the Accounting function is allowed to perfect manual refund documents in "red" ink to prevent a delay in processing of the manual refund request.

    • Schedule Number (Form 3753 only)

    • Verify the signature of approving official on the manual refund matches the signature on the active Form 14031 on file. Look for the omission or inclusion of middle initials, first names, first initial, etc. Refer to IRM 3.17.79.4.1(2), Accounting Refund Transactions.

    • Open control base box must be checked and a monitoring control base must be open on IDRS until TC 840 posts.

  2. Complete documentation of this review must be maintained on file for a period of 90 days and include the following:

    • Volume of all Form 5792 and Form 3753 reviewed.

    • Copies of Form 3753/5792 with TXMOD prints. When a deficiency is found, also maintain copies of all back up documents reviewed.

    • All deficiencies identified, specific corrective actions taken, and resolution date.

    • Supporting documentation of all actions taken.

Form 14031 Manual Refund Signature Authorization-RSTRK(M) Listing
  1. A review of the RSTRK (M) listing must be performed monthly to ensure all Form 14031 are reflected on the RSTRK(M) listing. The following actions should be taken to complete this review:

    • Compare all Form 14031 to the RSTRK(M) listing.

    • Compare all active BFS Form 210CO Certifying Officer to the RSTRK(M) listing. Verify the BFS Form 210CO validation date is current. (Current = 2 years from the BFS validation date reflected on the back of the BFS Form 210CO).

  2. Monthly perform a 100 percent review of Forms 14031 received in the current month to verify accuracy and completeness. The following actions should be taken:

    Section II

    • Verify name of authorized manual refund approver (Printed name) matches signature of manual refund approver (Look for the omission or inclusion of middle initials).

    • Verify that signature date is prior to signature date in Section III.

    • When a signature is on the pseudonym line, back up documentation must be attached from the Office of Privacy.

    • Check that all other fields are complete.

    Section III

    • Head of Office signature and printed name are present.

    • Verify Head of Office title is present. When "Acting" is indicated, a Form 10247, Designation to Act must be attached. (Verify signature date in Section III is within the Designation to Act timeframe on the Form 10247).

    Section IV

    • Accounting received date is present.

    • "Add to RSTRK" is notated with date when received in Accounting (May 2013 or later).

    • Verify the Added to RSTRK(M) date is within two business days (i.e., received date plus one business day) of the Accounting received date, unless otherwise notated (i.e. spelling correction (date) etc.).

    Note:

    Maintain complete documentation of this review on file for a period of 90 days and include the following:

    • Volume of all Form 14031 reviewed and verified against the RSTRK(M) listing.

    • Copy of the RSTRK(M) listing.

    • All deficiencies identified, specific actions taken, and resolution date.

    • Supporting documentation of all actions taken.

Form 3996, Tax Revenue Receipts Recap

  1. Form 3996 is used to balance Direct Revenue Receipts by tax class to the Service Center Control File (SCCF), Revenue Receipts Control Sheets, and all other accounts that include current revenue receipt monies.

  2. Monthly, prior to submission to HQ, the Data Control function should provide a complete Form 3996 package to the reports analyst. Photocopies or original spreadsheets highlighting "what" is being carried for the month. Back-up should be provided to the reports analyst upon request. Once this review has been performed, the reports analyst must initial or digitally sign the Form 3996 below the signature line and return the reviewed package to Data Control for timely submission to HQ.

  3. Ensure Form 3996 is signed and dated by the 25th of each month by the Accounting Technician and the Accounting Operations Chief. The Form 3996 and supporting documentation must be uploaded to the SP SharePoint by Close of Business the 25th of each month.

    Note:

    SP Sharepoint: https://organization.ds.irsnet.gov/sites/WICASSpSph/ATP/Scad/Rracs/SP%20Campus%20Form%203996s/Forms/current.aspx

    Note:

    Once the Form 3996 upload is complete, the campus must notify the HQ SCCF Analyst via e-mail.

  4. A comprehensive status report is required for any columns that contain an Out of Balance (OOB) condition.

    Note:

    Refer to IRM 3.17.30.13.14.4 for contents of the status report.

    Note:

    The Form 3996 is reported on the SP/CFO and Treasury Scorecard.

  5. All items on lines 8, 11, 12, and 13 should have audit trails.

    1. Line 8 - items that cannot be corrected; should be carried forward each month.

    2. Line 11 - items that have been controlled on either URF, DCF or SCCF but have not been journalized within the current month.

      Note:

      Increases to the SCCF are a plus and decreases to the SCCF are a minus to line 11.

    3. Line 12 - items that have been journalized but not controlled.

      Note:

      Items on lines 11, 12, and 13 should be cleared the following month.

    4. Line 13 - items from prior month.

    5. Line 14 - sum of lines 11, 12, and 13.

    6. Line 15 - should be all zeros.

  6. RRACS 072 - Should match with Line 1.

  7. SCCF 07–56 - Match with Line 4 (2nd day of new month).

    Note:

    The following reports are listed as a guide for balancing the SCCF Accounts:

    • SCF 11–42, Master Control Record Listing (CRL) for Mainline, Residual Remittance Processing System (RRPS), and IDRS

    • SCF 11–51, Tape CRLs for Mainline (includes RRPS) and IDRS

    • SCF 11–49, Nullified CRL

    • SCF 11–41, Adjustment CRL

    • SCF 11–47, Renumber Reclassification Summary

    • SCF 11–46, Renumber CRL

    • SCF 11–48, New DLN Record List

    • SCF 07–42, Control File Summary

    • SCF 07–43, Invalid Transcripts

    • SCF 01–41, Invalid CRL

    • SCF 07–47, Pre Journalized (PJ) Trial Balance

    • SCF 07–48, PJ Trial Balance - Future DLN List

    • Form 4028 and Form 4028A

    Reminder:

    "Ensure the date is included with each cycle."

SCCF Aged Listing

  1. The SCCF Aged listing consists of:

    • SCCF 07-44 - Aged Manual Modules - Items in manual status on the SCCF database.

    • SCCF 07-50 - Aged Error/Reject Modules - Items in Error or Rejected status on the SCCF database.

    • SCCF 07-51 - Aged Manual + Error/Reject Modules - Items that have been put into Manual from Reject status on the SCCF database.

    • SCCF 07-52 - Aged Summary - Summaries of aged Items broken down by month and Master File (IMF, BMF etc.).

    • SCCF 07-53 - Aged BOBs - Items in BOB (blocks out of balance) on the SCCF database.

      Note:

      There should be no items beyond 3 months on this report.

  2. The reports analyst should review the SCCF 07-44, SCCF 07-50, SCCF 07-51, and SCCF 07-53 weekly and give assistance where needed.

  3. The reports analyst should be the point of contact between Data Control and the other Accounting units and Headquarters. The reports analyst should facilitate weekly meetings between the Data Control, Reject and Unpostable functions when special situations occur, or inventories age.

Form 3997 Reconciliation of General Ledger Accounts

  1. This manual report will be prepared by the site monthly on letter size paper to report the balancing of the subsidiary accounts to the general ledger accounts. This report must not be altered. All accounts must remain on this form and filled in even if there are zero balances. This report will be used to alert the site and HQ of any imbalances between the accounts, and any processing problems within the site.

  2. A comprehensive status report is required for any account reported as either aged reconciled, unreconciled, or both. It must contain the following information, as appropriate:

    • Account number at the top of the report along with total money amount.

    • Item count and money amounts making up the total amount, with a clear and detailed explanation for the imbalance.

    • Attempts made, and methods used, to correct imbalances must be noted for each item. Follow-up attempts for correction should be made and documented monthly.

    • Last accounting period through which the account is completely reconciled on a current basis (i.e., had none of the present aged items in it).

    • Estimated date the account will be reconciled.

    • Any existing problems that may prevent reconciliation.

    • Identifying information that is pertinent for the items that make up the imbalance, such as: Doc ID, cycle, tape journal, etc.

      Note:

      If there is more than one item for the same account and the explanation is the same, one explanation is sufficient, but list the money amounts for each item.

      Note:

      If there is more than one item and the explanations are different, list the amount and explanation separately.

      Note:

      If the problem is systemic (a file or tape run), and there are numerous items, put the total amount with the explanation.

    • Important note: Use information that identifies the items, such as, IPAC ID, Doc ID, cycle, tape journal, etc.

  3. All credit amounts on Form 3997, and the comprehensive reports, must be bracketed.

  4. Ensure Form 3997 reflects the correct accounting period and money amounts.

  5. Definition of Terms on Form 3997:

    • Reconciled- When a variance exists between RRACS and the subsidiary accounts, and the corrective action is a journal action to RRACS, or a correction to the subsidiary ledger that was identified after the month has ended. If the report is a July 31 month-end and the item is journalized in August to get the account reconciled, it would show in the reconciled column.

    • Aged Reconciled- (Example: Form 3997 for the month of July 31, 2009) - If the transaction for this same item listed previously is still not completed by August's EOM processing, then it becomes an aged reconciled item.

    • Unreconciled Item- If there is an out-of-balance condition and the way to correct it is not clear (an adjustment to RRACS/subsidiary), then it will be reported as an unreconciled item. If this item is reconciled by the following month end, but actions required were not completed by end of month, then it must be reported under aged reconciled.

  6. Form 3997 must be digitally signed by the Field Director, the Accounting Operation manager, the Team manager, and the Accounting reports analyst.

  7. Form 3997 will be supported by balancing sheets maintained in the campuses. The following documentation must be attached to Form 3997 when emailed to HQ:

    • Copies of the BMF, IMF/CADE Form 6168.

    • Comprehensive status reports as described above.

    • Summary page from the spreadsheet used to balance the sub-accounts which includes the monthly totals and volume.

  8. Original of Form 3997, with all the back-up, will be maintained in the GAO file by the campus.

  9. No later than the 25th of the following month, a copy of the signed Form 3997, Form 6168, and the comprehensive reports, should be uploaded to the SP SharePoint. A upload confirmation must be emailed to the SP HQ RRACS analyst at &W&I SP:RRACS. The uploaded documents must reflect the same figures and account information as the signed copy maintained in the GAO file. If problems occur, and it is felt this time requirement cannot be met, contact SP HQ RRACS analyst for further instructions. It should be noted that an out-of-balance condition is not justification for this report to be submitted late. The Form 3997 is reported on the SP/CFO and Treasury Scorecard.

    Note:

    SP SharePoint: https://organization.ds.irsnet.gov/sites/WICASSpSph/ATP/Scad/Rracs/Form%203997%20SP%20Campus%20Documents/Forms/AllItems.aspx

  10. Additional reminders for Form 3997:

    1. The Quarterly Form 3997 is to be completed and signed for the months of March, June, September, and December, and emailed along with Form 3997 to SP HQ.

    2. Keep a copy of your email showing that the Form 3997, Form 6168 and comprehensive reports were uploaded to the SharePointt on or before the 25th of the following month behind your original documents that are kept in your GAO file.

    3. The monthly Form 5199A (maintained by Enterprise Computing Center (ECC) and available on Control D) must be included as supporting documentation in front or behind the Form 6168 maintained in the GAO file by the campus.

Form 3997, Review Procedures
  1. This report requires the reports analyst signature.

  2. Review to ensure accuracy:

    • Compare figures with the General Ledger, reconciled and unreconciled items

    • Ensure supporting documentation is attached with aged items

    • Check item counts

    • Statute expiration counts

    • Signatures and Date

    • Timeliness - This report is due by the 25th of each month

  3. Review suspense accounts for timely problem resolution, proper use of accounts and procedural adequacy.

    Note:

    Suspense accounts are reported on the Form 3997. Review to ensure reconciled items are resolved before next month's report is due. If not resolved, ensure they are reported as "Aged Reconciled," follow-up weekly until reconciled.

  4. Forward report (Form 3997) to Accounting Operations Manager prior to forwarding to the Campus Director for signature approval, ensure the report has been reviewed by the appropriate offices, as required by your Operation.

Reciprocal Accounting Control Record (RACR)

  1. The monthly RACR is due the 15th of each month to ECC and submitted monthly on the 25th with the Form 3997 to CFO and HQ.

  2. Ensure supporting documentation is attached.

  3. The RRACS Data Base Administrator (DBA) or Balancing Team emails this report to the CFO contacts and to the reports analyst; showing the date, contacts and documentation sent to update the scorecard.

  4. The reports analyst receives all copies of the RACR with supporting documentation for review and initials.

    Note:

    Upon request, RRACS or the Balancing Team will provide a copy of the weekly RACR to the reports analyst.

SF 224

  1. The SF 224, Statement of Transactions, is generated at the end of month processing and is used to report account classification of collections, refund disbursements, refund check cancellations, and transactions processed. It is broken down into three RRACS reports:

    • RACS Report 0020 SF 224 Statement of Transaction Section I - (requires signature)

    • RACS Report 020A SF 224 Direct Report Transaction Section I

    • RACS Report 020B SF 224 Reclassifications Section I - (requires signature)

  2. SF 224, Statement of Transactions and Reclassification must be signed by the campus director, as it reflects the directors' accountability. A signed copy of the SF 224 reports will be retained at the campus for use by GAO in its site audit.

  3. The SF 224 reports is reviewed by the reports analyst before forwarding to the Campus Director for signature.

  4. RRACS DBA emails on or before 11:00 amLocal Time Zone on the 2nd workday of the new month to CFO. The Campus Directors' copy is ready for review by the 3rd workday after any supplemental are completed as needed.

  5. If a supplemental is needed, the RRACS DBA will input the data to Central Accounting Reporting System (CARS), an automated BFS system for transmission to Treasury.

    Note:

    Pen and ink changes will have to be manually input to CARS on a supplemental 224 by the DBA after CFO transmits the original.

  6. The Campus Director's folder should contain RRACS Reports 020, 020A, 020B, Transmittal worksheet and SF 224 Adjustments (if any).

    Note:

    Always forward to Operations Manager to initial before forwarding to Campus Director for signature.

SF 224 Review Procedures
  1. Balancing of the SF 224 reports is always due on the second (2nd) workday of every month by 12:00 Noon.

  2. Beginning with the July 2013 SF 224, the campuses will no longer input and transmit their SF 224. They will send an email to CFO indicating Month-End balancing is complete. CFO will then transmit the SF 224 thru CARS. The end of month checklist must be completed and signed by the Accounting Operation Manager prior to the email notification.

  3. The RRACS DBA will include the reports analyst on the email to CFO confirming Month-End balancing is complete for the campus. This email shows the date, time and contacts to update the scorecard.

    Note:

    The reports analyst should receive all copies of the RRACS reports with supporting documentation attached for review and signature prior to forwarding to the operations chief.

  4. CFO will notify the campus when the transmission of their SF 224 is complete. The DBA will login to CARS and print the Statement of Transactions report to forward for campus director signature.

  5. Reports/Documents needed for review:

    • RRACS Report 003 - Daily General Ledger Trial Balance

    • RRACS Report 0020 - SF224, Statement of Transactions

    • RRACS Report 020A - SF 224, Direct Report Transactions

    • RRACS Report 020B - SF 224, Reclassifications

    • Transmittal Worksheet

  6. RRACS Report 003

    • Combine totals from accounts assigned to a specific TAS.

    • Compare totals to the TAS symbols on the SF 224.

  7. RRACS Report 020B:

    • Compare figures on the RRACS report 02B section I to the Transmittal Worksheet section I, per IRM 3.17.63.21.9, Redesign Revenue Accounting Control System.

    • The final RRACS 020 and 20B, and the transmitted CARS Statement of Transactions, posted copy, must be signed and dated by the 5th working day of the month by the Campus Director, or his/her designee, as it reflects the Campus Director’s accountability. A signed copy of the final RRACS 020, 020B report, and the signed posted CARS Statement of Transactions copy will be retained at the campus for use by GAO in its site audit.

  8. When reviews are complete, initial and date the folder's cover sheet and forward folder to Accounting Operation Manager to initial.

20F3885 Suspense Account Report and Percentage of Suspense Report

  1. These reports indicate the timeframe of aged IPACs, corrective action taken, and the percentage of aged items.

  2. IPAC Log sheet, Corrective Action Worksheet, and Percentage Worksheet are required by CFO.

  3. These reports are due to CFO by 1:00 pm local time on the third business day of the month.

  4. The reports analyst receives all copies of this report with documentation for review.

20F3500 & 20F3502 Suspense Account Report

  1. This account is required to reflect a zero balance and is due to CFO by 1:00 pm local time on the third business day of the month.

  2. The reports analyst receives all copies of this report with documentation for review.

Review of Suspense Account Reports

  1. Verify all required documentation is present and completed accurately.

  2. For 20F3885 report: Follow up as needed with RRACS to verify corrective action has been taken to resolve any items aged over 30 days.

Monthly General Ledger Trial Balance (M Trial)

  1. This report will show the fiscal year-to-date cumulative balance in each general ledger account, and the general ledger classification totals.

  2. The reports analyst should request a copy of the M Trial from the RRACS DBA monthly.

    Note:

    The RRACS DBA should forward a copy of the Reversed Status report to the reports analyst prior to submission to CFO and the HQ RRACS analyst.

  3. An Asterisk will appear next to an account in reverse balance status. An account in reverse status must be expeditiously resolved.

  4. The reports analyst will review the Reverse Status Report prior to submission to CFO and HQ RRACS analyst. A Reverse Status Report explains the reverse status condition and must be sent by email or faxed to CFO and the HQ RRACS analyst no later than the 4th workday of the new month.

  5. The Reverse Status Report should indicate in the header "Attachment for M Trial" , the month it is for, and the name of the campus.

  6. This report should include:

    • Every account that is in reverse status

    • A clear and detailed explanation

    • Money amount(s)

    • Other information that will help identify the item(s) such as, Doc Ids, cycle, etc.

      Note:

      If the reverse status was caused by many items, then list the total amount with the explanation.

    • If there is more than one explanation for one account, list them separately with the appropriate money amount for each.

    • How long this particular item(s) has caused this reverse status and what action has been taken to fix the problem.

  7. The monthly General Ledger Trial Balance must be certified as to its correctness and the certified copy should be kept in the campus' GAO file. The authority for certification of this report can be designated by the campus director, but not below the operations manager.

Statement of Difference (SOD)

  1. This Reconciliation report is due three (3) work days after the 119 journal has posted to RRACS to CFO.

  2. Supporting documentation is needed for items 3 months and older.

  3. The RRACS DBA or Balancing Team sends these reports via email to the CFO contacts showing the date, contacts and when the documentation was sent, to update the scorecard.

  4. The reports analyst should be receiving all copies of the SOD and supporting documentation for review prior to the due date.

    Note:

    The RRACS DBA or Balancing Team should send the SOD to the reports analyst prior to the due date.

Review Procedures
  1. For Reconciliation Report Deposits check for:

    1. Accounting Period and ALC

    2. Correct audit month/year

    3. Deposit Ticket/Deposit Voucher Number

    4. Date presented (box 2 date)

    5. Confirmed and Date received in RRACS

    6. Treasury amount (compare against 035B) or IRS amount (compare against 035C)

    7. Action taken /date

    8. Journal Number

  2. For Reconciliation Report Disbursements check for:

    1. Agency Location Code (ALC)

    2. Audit date

    3. Schedule number

    4. Prepared date

    5. Confirmed date

    6. Treasury amount

    7. IRS amount

    8. Action taken

    9. Journal number

  3. In addition, ensure that preparer, reviewer and certifying officer have sign and dated report. Check for supporting documentation for items over 3 months old.

  4. Confirm that the email to Headquarters was sent prior to the due date.

    Note:

    Statement of Difference is part of the CFO and Treasury Scorecard.

Subsidiary Accounts and Procedures

  1. Subsidiary accounts that afford necessary details in support of certain general ledger accounts will be maintained, as prescribed. As a general rule, posting to subsidiary accounts will be made directly from documents or forms showing the transaction. This practice avoids possible inaccuracies that may arise if information is transcribed or summarized separately, and such summaries are then used for entries to the subsidiary accounts.

  2. The reports analyst should:

    • Analyze and review the Subsidiary Accounts; ensure all supporting documentation is attached, history sheets are updated and case files are set up according to IRM 3.0.167, Losses and Shortages for completeness.

    • Ensure the RRACS generated reports balance.

    • Ensure reports cross balance and all general ledger and subsidiary files agree with reported information.

  3. Quarterly, prepare written documentation, recommendations and/or oral presentations for management; identifying possible error trends and all out of balance conditions.

  4. Document and support findings:

    • To improve the reporting systems

    • To change processing procedures

    • To present data for tracking purposes

    • To identify staffing and/or training needs

Account 1400 Tax Accounts Transferred Out

  1. This receivable account will be used to record and control amounts on NMF accounts while in the process of manual transfer to other campuses. NMF account amounts will be posted to this account when Form 514-B is prepared. Amounts will be closed from the account upon receipt of the receiving campus' acknowledgement of account transfer on Form 514-B, part 2.

  2. External subsidiary record is the pending file of Form 514-B.

Account 1400 Review Procedures
  1. Verify that a copy of Form 514-B is filed and the amount matches the document with journal stamped.

  2. Follow-up with Campus if no confirmation is received, per IRM 3.17.21.4.1#7 Credit and Account Transfer

Account 1510 Other Receivables

  1. This receivable account will be used to record amounts of receivables other than taxes collectible. This account represents receivables which have not been collected, assessed or written-off as uncollectible. Account 1510 will be supported by copies of bills, debit voucher or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness.

  2. This account will also be used to clear unresolved debit items from the Service Center Control file (SCCF) and unprocessable debits from the Dishonored Check file (DCF). This account will be supported by case history files recording approval of the Submission Processing site Director to remove them from the SCCF. These items will be supported by Forms 3809 for non-revenue receipt items and Form 2424 for revenue receipt items.

  3. Items referenced in (1) and (2) remaining in this account after the statutory period for assessment has expired will be transferred to Account 1840. The statutory period for assessment on unresolved debits from the Service Center Control file (SCCF) will be considered to have expired when the general assessment statute period has expired.

    Note:

    When supporting tax documents show the taxable period, then the general statute ruling applies. The general assessment statute period has expired 3 years from the due date of the return, or 3 years from the time the return was filed, whichever is later. When supporting tax documents cannot be located, after exhausting every means possible to retrieve them, use the Julian date of the DLN, apply the general assessment statute period, (3 years), and add one (1) year, for a total of 4 years, to determine the presumptive statute expiration.

  4. External subsidiary is the file of paper documents used as described above.

Account 1510 Review Procedures
  1. Monitor and review for timeliness and accuracy.

  2. Ensure case files are journaled from 1510 to 1840 timely per the statute expiration dates.

Account 1530 Employee Fraud Case

  1. This receivable account is used to record an employee fraud case. Account 1530 will be supported by:

    • Court documents

    • Treasury Inspector General for Tax Administration (TIGTA) and/or Criminal Investigation Reports

    • Debit vouchers or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness

  2. Employee Fraud Cases are controlled in Account 1530 . Access should be limited.

  3. Transfer case to Account 4910, Disbursement Loss, when the case is determined uncollectible. Documentation will explain why the case is uncollectible.

  4. The external subsidiary for this account is the file of paper documents described in (1) above.

Account 1530 Review Procedures
  1. At the start of your review check case files for the following:

    • Ensure balance sheet with comments concerning case actions is completed.

    • Ensure Form 3809 was prepared to apply Transaction Code (TC) 700 false credit to the account.

  2. Maintain case files as follows:

    • Ensure cases are in Doc ID, Taxpayer Identification Number (TIN) or Alpha order.

    • Ensure the completed case balance sheet is on the left side of the folder.

    • The right side of the folder should contain:
      Original TXMOD print, followed by
      Current TXMOD print (These prints should be updated every 6 months or when action is taken)
      Any back-up letters or correspondence, etc. should follow
      Keep the most current documents on the top following the TXMOD prints. All actions should be dated and recorded in detail on the balance sheet.

      • All original Forms 3809 should be maintained in the case folder with the most current journal at the top.

      • Original case on the bottom of the right hand side of the case file.

      • The balance sheet should show the original "repayment" amount and the remaining balance. This should be updated with each new transaction or repayment. The ending amount should always match the balance on the 1530 Account portion of the RRACS 0131 report.

      • Review the IDRS control base to verify that it is being updated with the appropriate activity and the examiners control number is listed.

      • Pull case every 3 months and apply appropriate actions taken until the statute date expires.

Account 1535 Court Case Erroneous Refund (Kansas City Only)

  1. This receivable account is used to record erroneous refund receivables that result in a court case.

  2. Account 1535 will be supported by:

    • Form 3809 Documents

    • Backup Documentation such as IDRS Print reflecting Erroneous Refund

Account 1535 Review Procedures
  1. Ensure Form 3809 documents balance to the 1535 Account portion of the RRACS 0131 Report.

  2. Ensure all back-up documentation is present.

Account 1540 Non-Court Case Erroneous Refund

  1. This receivable account is used to record erroneous refund receivables that are not court cases. This account represents erroneous refund receivables that have not been collected, resulted in a court case, assessed or determined uncollectible. Account 1540 will be supported by:

    • Copies of bills

    • IDRS Letter 510C or Letter 4728C

    • Debit vouchers

    • Other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness

  2. Cases are transferred to Account 1530 when it is determined that the case is going to court.

  3. Cases are transferred to Account 4910, Disbursement Loss when the statute expires.

  4. A case determined to be uncollectible before the statue expiration will be transferred to Account 4910, Disbursement Loss . Documentation will explain why the account is uncollectible.

    Note:

    The reports analyst must review Account 1540 monthly to ensure that cases are timely transferred to Account 4910.

  5. The external subsidiary for this account is the file of paper documentation described in (1) above.

Account 1540 Review Procedures
  1. Within the first 10 days of receipt the tax examiner should have the following:

    • Completed history sheet.

    • Verification of 1st Letter 510C issued by area identifying the erroneous refund. If no Letter 510C had been sent then the examiner receiving the case should have sent it.

    • Verification that a TC 844 is on the IDRS account with a demand date, if the IRS is in error, or no demand date if the taxpayer is in error. If the case is routed from one center to another the TC 844 should have been re-input at the campus where the case is being worked.

    • Verify the TC 470, Closing Code 93 has been input.

    • Verify the TC 971, Action Code 663 has been input.

  2. Case files should be maintained as follows:

    • Cases should be in Doc ID, TIN or alpha order

    • The right side of the folder should contain:

      1. Completed case history sheet

      2. The original TXMOD print

      3. A current TXMOD print

      Note:

      TXMOD prints should be updated at least, every three months or when action is taken.

      4. Back-up, letters, correspondence, etc.

      Note:

      Keep the most current action at the top after the TXMOD prints. All actions should be dated and recorded in detail on the history sheet.

    • All original Forms 3809 should be maintained in case folder with the most current journal on top.

    • Erroneous refund expiration date must be marked on the outside of the case file folder.

    • Original Erroneous refund case on the bottom of the right hand side of the case file.

    • Balance sheet showing the original Erroneous Refund amount and the remaining balance. This should be stapled to the left side of the case folder and updated with each transaction. The ending amount should always match the balance on the RRACS 0131 report.

    • Ensure the second Letter 510C was sent 45 days after the first Letter 510C or if the case was not received within 45 days from the identifying area then the second Letter 510C was sent within 10 days of receipt of the case.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Review IDRS control base to verify that it is being updated with appropriate activity and the examiners control number is listed.

    • Pull case every 3 months and apply appropriate actions taken until erroneous refund statute date expires.

Account 1543 Payment over Cancellation Erroneous Refunds

  1. This receivable account will be used to record erroneous refund receivables that are NOT court cases. This account represents erroneous refund receivables that have NOT resulted in court cases nor have been collected, assessed or determined uncollectible. Account 1543 is supported by copies of bills, Letter 510C, debit vouchers or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

  2. When setting up the case on RRACS, use the TC 700 transaction date on Form 3809. This transaction date is the date of the erroneous refund (TC 840/846). Form 3809 should be stapled to the left side of the folder with the most current one on top and with a journal number clearly printed on each form.

  3. Refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations,for additional information on processing POC accounts.

  4. The external subsidiary record for this account is the file of paper documents described above. For maintaining cases in this account refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations.

Account 1543 Review Procedures
  1. Follow same review procedures as 1540 account found at 3.17.15.7.5.1, Accounting and Data Control-Accounting Reports Analyst - Responsibilities, with the exception of:

    • The ending amount should always match the balance on the RRACS 0156 report.

Account 1545 Identity Theft Erroneous Refunds

  1. This receivable account will be used to record identity theft erroneous refunds and was effective June 25, 2012. This account represents identity theft erroneous refund receivables which are uncollectible. Account 1545 will be supported by Form 3809, IDRS prints, or other documents showing the name of each debtor, amounts receivable, and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

  2. Beginning January 15, 2014, cases that are opened via new IDRS command codes IDT 48 or IDT 58 will be supported by End of Day(EOD)1640, EOD 1622, and Batch posting 171 report. This account is not under Director's Accountability.

  3. The systemic processing will produce a daily automated Batch Journal 171 to RRACS which will debit account 1545 and credit account 4220. The EOD 1640 will produce the summary (amounts and volumes) of the transactions and a new report EOD 1622, which lists the detailed information (taxpayer identification) of each transaction, will also be available on Control D. See IRM 3.17.64.17.10, Accounting Control General Ledger Policies and Procedures, for procedures used to balance the GL 1545.

  4. Refer to IRM 3.17.64.17.10, Accounting Control General Ledger Policies and Procedures for monthly balancing procedures.

  5. Refer to IRM 3.17.243, Miscellaneous Accounting for resolution of unpostables and write-off procedures.

  6. The external subsidiary record for this account is the Form 3809 or EOD 1640, EOD 1622, and Batch posting 171 report.

Account 1545 Review Procedures
  1. Ensure all external subsidiary records are maintained in the case file until the five year statute has expired.

    • For manual processing Forms 3809 should be maintained in a suspense file by Form 813 DLN.

    • Verify Form 813 is updated with current balance due to adjustments/duplicates removed from the batch.

    • Balance of Form 813 agrees with RRACS 0155 case balance.

  2. For systemic processing:

    • RRACS 171 batch run should balance to the EOD 1640/1622 Control-D report.

    • Ensure 171 journal is stamped on the EOD 1640 and 1622.

    • If a reversal or write-off was done January thru May 20, 2014, Form 5147 should be attached to the EOD 1622 and also notated with “reversal” or “write-off”.

    • The item count and money amount must be adjusted to reflect the current balance. An alternative work listing (spreadsheet) may be use, but must include adjustment, journal numbers, volume and monies, and must be attached to the original EOD 1622.

Account 1547 Return Preparer Misconduct Erroneous Refunds

  1. This receivable account will be used to record return preparer misconduct erroneous refunds effective July 1 ,2015. This account represents return preparer misconduct erroneous refund receivables which are uncollectible. Account 1547 will be supported by Form 3809 (CSC ONLY).

  2. Beginning July 1 2015, cases that are opened via new IDRS command codes RPM 48 or RPM 58 will be supported by End of Day (EOD) 1640, EOD 1624, and Batch posting 172 report. This account is not under Director's Accountability.

  3. The systemic processing will produce a daily automated Batch Journal 172 to RRACS which will debit account 1547 and credit SCCF. The EOD 1640 will produce the summary (amounts and volumes) of the transactions and a new report EOD 1624, which lists the detailed information (taxpayer identification) of each transaction, will also be available on Control D. See IRM 3.17.64.17.11, Accounting Control General Ledger Policies and Procedures, for procedures used to balance the GL 1547.

  4. The external subsidiary record for this account is the Form 3809 (CSC ONLY) EOD 1640, EOD 1624, and Batch posting 172 report.

Account 1547 Review Procedures
  1. Ensure all external subsidiary records are maintained in the case file until the five year statute has expired.

    • F3809 manual processing (CSC ONLY) should be maintained in a suspense file by Form 813 DLN.

    • Ensure balance of transfer memo agrees with RRACS 0157.

  2. For systemic processing:

    • RRACS 172 batch run should balance to the EOD 1640/ 1624 Control-D report.

    • Ensure 172 journal is stamped on the EOD 1640 and 1624.

Account 1600 Manual Assessments, Transit Account

  1. The unpaid balance of manual assessments may be established in the manual Assessments, Transit Account.

  2. Assessments manually prepared may be transferred from Account 1600 to NMF, BMF, IMF or Individual Retirement Account (IRA) in accordance with schedules established by the individual Submission Processing sites.

  3. External subsidiary is a file of new documents pending transfers to NMF, BMF, IMF or IRA.

Account 1600 Review Procedures
  1. Verify Form 3552, Form 2859 and Form 813 are in the file.

  2. Protective Manual Assessment (PMA) cases have a 45 day time-frame.

  3. Ensure account closed timely.

Account 1710 Dishonored Checks

  1. This receivable account will be used to record and control dishonored checks or money orders, previously recorded as collections for the IRS.

  2. Account 1710 serves as a suspense account for these items while research operations are being performed to determine proper application to the taxpayer account. Individual items within the account are controlled and maintained on a magnetic tape file within IDRS.

  3. After research and proper identification, items are removed from the IDRS file and posted as debits to the taxpayer account. Items remaining on the file after 367 days will be transferred to Account 1510.

  4. After the DCF file is balanced to all related SF5515's, sub-batches are prepared and tapes are run. Entries to RRACS are made from the SF 5515's and tapes. Annotate all journal numbers and amounts on the DCF03. Make sure total of journals balances with total added to DCF file, plus or minus any adjustments or errors, as noted.

  5. This account will also be used to record deposit discrepancies (losses) related to SF 5515. These items will be entered immediately onto the DCF for control purposes. Necessary research will be performed to determine the proper application of the debit. If, after 90 days, the debit cannot be resolved, it will be transferred to Account 7650, Deposit Discrepancies. The case must be documented with all actions taken to resolve the discrepancy. This documentation is needed to request relief of the loss.

  6. External subsidiary is the DCF on IDRS.

    Note:

    Verify the Retention of Dishonored Check File Dropped Listing DCF 5403 and DCF 5404 is being maintained as stated in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), 3.17.220, Excess Collections File, and Document 12990 (Records Management, Control Records Schedule for Tax Administration), (7 Years). This listing is no longer printed, but is available on Control-D.

Account 1840 Other Receivables, Inactive

  1. This receivable account will be used to record the amounts of unresolved items for which the statutory period of assessments has expired.

  2. Items in this account will be transferred from Account 1510. These case history files will be supported by approval of the Submission Processing site Director.

  3. Items may also be transferred from Account 4810. These case files will be supported by administrative approval delegated no lower than Chief, Accounting Operations. Items in this account will be closed to Account 6600, Accounts Cleared Statute, ten years from the date of the deposit ticket/debit voucher.

  4. Case files will be reviewed at least once yearly to determine the accounts on which the Statute for Collection has expired.

  5. Upon expiration of Statute for Collection, items in this account will be closed to the Accounts Cleared, Statute Account 6600.

  6. External subsidiary is the case history files.

Account 1840 Review Procedures
  1. Review for:

    • Timely movement to next account

    • Updated history sheets

  2. Ensure case files are being reviewed annually

  3. Ensure managers sign and date history sheet

  4. Ensure account is in balance

Account 2330 Employee Plans/Exempt Organization (EP/EO) User Fees

  1. This receipt account represents monies collected and placed in the Treasury General Fund Account. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A. The Submission Processing Campus Director is personally accountable for these funds until deposits into the Treasury Account is confirmed.

    Note:

    Cincinnati Submission Processing only. Deposits received for this account in sites other than Cincinnati, should be transferred via Form 2158 to Cincinnati.

  2. Included in this account are monies for Treasury Account Symbols 20–2411 (User Fees).

  3. This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

  4. Account is maintained on a fiscal year basis.

Account 2330 Review Procedures
  1. Verify all documents journaled to this account are for the Cincinnati Submission Processing Campus (CSPC) only.

  2. Other than CSPC, ensure Form 2158 have been completed to transfer credits and documents to other sites.

  3. Ensure re-class has been completed on RRACS.

  4. Ensure the contra account was journaled into Account 6310 .

  5. Ensure account is balanced.

Account 2335 Miscellaneous User Fee

  1. Included in this receipt account are monies for the EO User Fee Increase and the Form 990 CD User Fee. The EO User Fee increase is processed in Cincinnati .The Form 990 CD User Fee is processed in Ogden. These monies are reported under Treasury Account Symbol 20X5432.5.

Account 2335 Review Procedures
  1. Verify all documents journaled into this account belong to your campus (Cincinnati and Ogden Only).

  2. Other than CSPC and OSPC, ensure Form 2158 has been completed to transfer credits and documents to either CSPC or OSPC.

  3. Ensure re-class has been completed on RRACS.

  4. Ensure the contra account was journaled into Account 6310.

  5. Ensure account is in balance.

Account 2350 Public Debt

  1. This receipt account represents monies collected and placed in the Treasury General Fund accounts. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A. The Submission Processing Site Director is personally accountable for these funds until deposits into the Treasury Account is confirmed.

  2. Included in this account are monies for treasury Account Symbols 20X5080.1 (Voluntary Contribution to reduce the National Debt).

  3. This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

  4. This account is maintained on a fiscal year basis.

Account 2350 Review Procedures
  1. Ensure document clearly states "Public Debt."

  2. Ensure documents are maintained, journaled and balanced separately within Account 6400.

Account 2355 Federal Court Ordered Restitution
(Kansas City Only)

  1. This receipt account represents monies collected for court ordered restitution of fines, penalties and court costs. This also includes court ordered restitution in excess of assessable amount. These payments should be received with instructions from the originator that these payments fall into one of these categories. These monies are reported under Treasury Account Symbol 20–3220.

Account 2355 Review Procedures
  1. Verify the documents journaled into this account belong in this account (Kansas City Only).

  2. Ensure the contra account was journaled in Account 6400 (Kansas City Submission Processing Campus).

  3. Ensure credits and any supporting documentation are transferred via Form 2158.

  4. Ensure re-class is completed.

  5. Ensure Form 2158 was prepared to transfer money to Kansas City.

Account 2360 Conscience Funds

  1. This receipt account represents monies collected and placed in the Treasury General Fund Accounts. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A.

  2. The Submission Processing Site Director is personally accountable for these funds until deposits into the Treasury Account is confirmed.

  3. Included in this account are monies for Treasury Account symbols 20–1210 (Conscience Fund).

  4. This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

  5. Account is maintained on a fiscal year.

Account 2360 Review Procedures
  1. Ensure document clearly states for conscience fund or anonymous.

  2. Ensure documents are maintained, journaled and balanced separately in Account 6400.

Account 4610 Unapplied Advance Payments

  1. This liability account will be used to record advance payments voluntarily made by taxpayers in anticipation of deficiency or additional assessments of all classes of tax, and advance payments (including cash bonds) in pre-refund audit cases. The balance on this account represents all such payments which have not been assessed, applied to taxpayer accounts, refunded or transferred to other offices.

  2. Account 4610 will be supported by subsidiary records established to identify the taxpayer, amount of advanced payment and subsequent assessment application, refund, or transfer of the collection.

Account 4610 Review Procedures
  1. Ensure account is being used properly.

    Note:

    Account should only contain payment documents that are prepared by Examination with the exception of the IMF $100 Million Dollar taxpayers.

  2. Verify spreadsheet is being maintained.

  3. Ensure file folder is prepared for each document that is six (6) months or older.

  4. Ensure history sheet is being maintained with all actions annotated.

  5. Ensure account is balanced monthly to the general ledger.

Account 4620 Unidentified Remittances

  1. Recorded in this liability account are those receipts received by the Service without sufficient information to make application to the proper account. Receipts deposited to this account are considered revenue receipts in the income tax classification.

  2. Items are cleared from this account as applications to outstanding accounts, assessments of tax due, refunds to remitter, and adjustments to other funds or other agencies.

  3. Applications from this account normally must be reclassified upon application.

  4. Items in this account will be cleared to Account 6800, Excess Collections, after one (1) year.

  5. Account 4620 will be supported by subsidiary records established on URF.

Account 4620 Review Procedures
  1. Review this account quarterly to ensure that cases are being researched adequately and timely for proper application of payments. Refer to IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), for detail processing of a case file.

  2. Pull a random sample of cases to review. Use a check sheet as part of the review process.

  3. The URF, cases will include letters, envelopes, copy of money orders, cashier checks, government checks or illegible remittances and all case related material received from the taxpayer.

  4. Part 3 of Letter 3731C will be used as a history sheet.

  5. Ensure:

    • URF number is listed on case

    • The initial action taken was within 2 workdays of being added IRM 3.17.10.1.6(2), Dishonored Check File (DCF) and Unidentified Remittance File (URF)

    • IDRS Command Code usage. see IRM 3.17.10.3.5(4), Dishonored Check File (DCF) and Unidentified Remittance File (URF)

    • 1st letter sent within 30 days

    • 2nd letter sent 45 days after no reply to 1st letter

    • History sheets adequately documented

  6. When review is complete, initial, date history sheet and provide a review summary to management.

  7. The Unidentified Remittance Dropped Listings, as stated in IRM 3.17.10 Dishonored Check File (DCF) and Unidentified Remittance File (URF), IRM 3.17.220, Excess Collections File (XSF) are maintained on the IRS electronic depository, Control D website. Retention of electronic reports is the same as paper records as listed in Document 12990 (Records Management, Control Records Schedule for Tax Administration).

Account 4710 Offers in Compromise (Cincinnati Only)

  1. This liability account is used to hold and control amounts received with Offers-in-Compromise, while the offer is being processed. Monies recorded in this account are Deposit Fund amounts deposited under Treasury Symbol 20X6879.

  2. Deposit Fund monies may be reclassified to revenue receipts and applied to taxpayer accounts, refunded upon rejection or withdrawal of the offer, or transferred to another Submission Processing Campus on Form 2158. Transfers will be reclassified by the receiving Submission Processing Campus.

  3. This account is supported by individual records within the Data Base. Application, refund, or transfer must not exceed the credit available in the individual record. The external subsidiary file is the Record of Offer-in-Compromise, Form 2515 or 4710–CG.

Account 4720 Sales of Seized Property (Ogden Only)

  1. This liability account is used to hold and control amounts received as proceeds from the sales of seized property until proper distribution documents are completed by the collection functions.

  2. Deposit Fund monies may be reclassified to revenue receipts and applied to an outstanding tax liability, refunded to taxpayer when amount is in excess of tax liability or transferred to another Submission Processing Site on Form 2158. Transfers of Deposit Fund amounts will be reclassified by the receiving campus.

  3. This account is supported by individual records in the RRACS Data Base. Application, refund, or transfer must not exceed the credit available in the individual record. The external subsidiary file is the Deposit Fund Record, Property Sales and Deposits, Form 1983.

Account 4720 Review Procedures
  1. Review of this account should be performed quarterly:

    • Compare RRACS 0135 report to Form 2433 document to ensure correct information has been journaled (i.e. journal number, money amounts, etc.).

    • If corrections were made they will be documented on the balance log that is maintained in the front of the 4720 account folder.

    • Compare balance corrections to the Daily Posting Summary (DPS) to verify that all corrections have been completed.

Account 4730 Miscellaneous Deposit

  1. This liability account is used to hold and control miscellaneous deposit fund amounts. Included in this account will be amounts requested held by Criminal Investigation when related to an on-going investigation, and other specific transactions authorized by HQ.

  2. Deposit fund monies may be reclassified to revenue receipts, and applied to outstanding tax liabilities or assessments, refunded to taxpayers when amount is in excess of liability, or transferred to another campus on Form 2158.

  3. This account is supported by individual records in RRACS. Application, refund, or transfer must not exceed the credits available in the individual records.

Account 4730 Review Procedures
  1. Ensure money amount matches with RRACS.

  2. List each Doc ID in order, original prepared dated and balance that is in the open status.

  3. Ensure history sheet is annotated with all actions taken.

  4. Ensure semi-annual verification is completed.

  5. Ensure copy of the memo is in the case file.

Account 4910 Disbursement Loss

  1. This liability account provides internal control for disbursement losses (unrecoverable erroneous refunds). Cases will be maintained in this account while relief for the Accountable Officer is requested.

  2. A case will be transferred from Account 1530 when the case is determined to be uncollectible. Documentation will explain why the case is determined uncollectible.

  3. A case will be transferred from Account 1540 when the case is determined to be uncollectible or the statute expires. Documentation will explain why the case is determined uncollectible.

  4. The case documentation will be used to support the relief request.

  5. If a taxpayer makes a payment while in Account 4910, then credit Account 4910 and debit SCCF account.

  6. When relief is granted, Account 6920, Disbursement Write-Off, will be debited, and Account 4910 will be credited to provide relief.

Account 4910 Review Procedures
  1. When the 2 or 5 year statute for collection has expired on erroneous refunds, ensure the examiner has taken the following actions:

    • History sheets are updated and current.

    • The Transaction code 700 on the account should match the amount that needs to be written off and also match the RRACS 0131.

    • The taxpayer should only be in a balance due for any tax, penalty and interest on the tax and penalty, correctly assessed on his account. If the account has zero tax, there should be no balance due or credits on the account.

    • The case file is completed according to IRM 3.17.80.1.11, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations.

    • The TC 700 is highlighted on a current TXMOD print.

    • There is a completed list in the case file with the following information:

      The Accountable Director

      The statute expiration date

      The correct money amount

      The reason for write-off should match the information on the history sheet

    • Ensure Form 3809 is prepared to credit Account 1540 and debit Account 4910.

    • Ensure the amounts match Form 3809 with write-off amount.

    • Ensure original Form 3809 is in the case file complete with journal number.

    • Ensure the case is marked as a write-off on the outside of the folder in black marker.

    • Ensure the TC 845 is on the IDRS account.

    • Ensure the control base on IDRS is reassigned to the write-off control number.

    • When the memo is received from the Field Director, the senior/specialist will forward to the HQ, Loss and Shortage Analyst. At this time, the case will be re-controlled, the IDRS Activity will be "the Erroneous Refund case number," and it will be maintained in Account 4910 file until approval is received from the W&I Director.

Account 4970 Unapplied Refund Reversal

  1. This liability account is used to record and control canceled refund checks prior to research for proper application. The items included in this account are only those checks generated manually or through IDRS, which cannot be input by the disbursing office directly to the Master File.

  2. This account is used to control refund (45 document code) items that are received due to mismatch of money amounts. Resolution of these items may require contact with the (RFC) and BFS. Discrepancies under $5.00 will be resolved using Account 6540, Small Debit and Credits Cleared.

  3. If any items cannot be resolved through research and have been in the account for over two years, follow-up contact with RFC and BFS, administrative action may be requested. Administrative approval to charge Unapplied Refund Reversal credit amounts to Account 6800, Excess Collections, and charge debit items to Account 1840, Other Receivables, may be granted. Authority for approving such action may not be delegated below Operations level. All cases should be fully documented regarding research performed, destruction of records, contacts, related correspondence, etc. to ascertain that resolution is no longer possible.

  4. This account is used to control Limited Pay Cancellations received via IPACD or IPACR until the tapes are processed at ECC-MTB or manual documents are prepared. Individual records will be maintained for each IPAC Document.

  5. Items placed in this account will be subject to expedite research to determine proper application and will be transferred to the proper taxpayers account upon identification.

  6. Refunds and Cancellations transferred from this account to a miscellaneous fund must be reclassified.

  7. The external subsidiary file documents are Forms 3809 associated with Forms 1098 and IPAC Treasury Receivable, Accounting, and Collection System (TRACS).

Account 4970 Review Procedures
  1. Compare the following reports with the account balance worksheet:

    • RRACS Report 0130

    • IPACR Suspense Report

    • RRACS Report 0138, and

    • IPACD Suspense Report

  2. Review the timeliness of the case files.

  3. Ensure all case file history sheets are fully documented regarding research, contacts made, and any other actions taken.

  4. Ensure proper documents were prepared and all documentation is present.

    • Follow up documentation is present.

    • Funds should not be reflected in this account beyond 30 days from original received date.

Account 4971 Unapplied External Leads Real Account (Fresno and Cincinnati Only)

  1. This account is used to record and control unapplied external leads prior to research for proper application.

  2. The items included in this account also include unapplied external leads which cannot be applied directly to MF.

  3. The external subsidiary file documents are Form 3809's.

  4. Paper check deposit processing is in Fresno only. Electronic payment processing is in both Fresno and Cincinnati.

  5. For processing procedures refer to IRM 3.17.64.18, Accounting Control General Ledger Policies and Procedures.

Account 4971 Review Procedures
  1. Ensure Form 3809 and backup are maintained in file.

  2. Some deposits will remain in Account 4971. Supporting documentation for these monies remaining in GL 4971 will be supplied by IVO-External Leads and maintained in Account 4971 file with the Form 3809.

Account 4975 Liability, DOJ Receipts
(Kansas City Only)

  1. This liability account is used to control unapplied lockbox items from the Department of Justice (DOJ) until research can be accomplished to determine appropriate application or reversal to DOJ. The lockbox accounts will be maintained in an external subsidiary file, consisting of a copy of the listings, cross referenced with the applicable journal number. As each item is identified and applied, the supporting subsidiary document should be annotated and the remaining balance corrected to assist in the monthly reconciliation.

  2. Items placed in this account will be subject to expedite research to determine proper application and will be transferred to the proper taxpayers account upon identification.

  3. If any items cannot be resolved through research and follow-up with DOJ and have been in the account for over two years, administrative action may be requested. All cases should be fully documented regarding research performed, destruction of records, contacts, related correspondence, etc. to ascertain that resolution is no longer possible. Once approval has been granted these items will be transferred to Account 6800, Excess Collections. Authority for approving such action may not be delegated below Operation level.

Account 4975 Review Procedures
  1. Review this account monthly to ensure that cases are being researched adequately and timely for proper application of payments. Refer to IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), IRM 3.17.63, Redesign Revenue Accounting Control System, and IRM 3.17.243, Miscellaneous Accounting for detail processing of a case file.

  2. The DOJ technician will have all Account 4975 case folders for review. Pull a random sample of cases to review. They are filed in alpha order. The cases should include history sheets, Form 2424, IDRS prints, and IPAC listing. Use a check sheet as part of your review process.

    1. List name control and Doc ID from case file

    2. Document received date

    3. Ensure all supporting documentation is in case

    4. Ensure history sheet is updated and all actions notated

    5. Ensure IDRS CC research is complete

    6. Ensure contacts were made with FLU (Financial Litigation Unit), Courts, Counsel, etc.

    7. Verify item over 2 years old

    8. Confirm write-off memo prepared timely

    9. When review is completed, initial and date history sheet

    10. Provide a copy of the review summary to management

Account 4985 IPACR Suspense

  1. This account is used to record and control IPACR receipts prior to research for proper application.

  2. Items not identified in Accounts 4970 and 4975 will be included in this account.

Account 4985 Review Procedures
  1. Monitor and review as needed.

Account 6310 Miscellaneous Fees

  1. This account records the liability for fees and services rendered. The following fees will be recorded in Account 6310:

    • 2320 Duplication of Exempt Organization Master File (EOMF) Documents

    • 2330 EP/EO User Fee

    • 2335 EP/EO User Fee Increase (CSPC)

    • 2340 Photocopy Fee

    • 2395 OIC User Fee

  2. The five individual accounts mentioned above must be balanced and maintained separately within Account 6310.

Account 6310 Review Procedures
  1. Reports/Documents received from RRACS for review:

    • RRACS Report 004 - Monthly General Ledger Trial Balance (MTRIAL)

    • RRACS Report 051 - General Ledger Account Details (For each contra account listed)

    • Balanced contra account worksheet

    • Account folder with maintained documentation enclosed

  2. Using the RRACS Report 004 add the contra account figures, minus Account 6310 , total should be zero. If an out of balance occurs, ask the DBA to research the account journals and request a correction journal when needed.

  3. The balanced contra account worksheet will have a beginning balance of zero at the beginning of the new fiscal year (FY). The ending balance at the end of each month will carry over to the next month.

  4. The account folder will maintain Form 1963, Form 2221, Form 8166, Form 3244, Form 813, Form 2424, and copies of deposit tickets, checks. memorandums, etc. Verify the collection is maintained behind the correct contra account, ensure monies are transferred to other campuses timely, when indicated, and journalizations were created properly.

  5. Verify the correct journal of debits and credits from RRACS 051 are listed properly on the balance worksheet and the ending balance equals the account general ledger net amount.

  6. If a difference is present the RRACS 051 can be used to identify the out of balance.

  7. Ensure the worksheet is initialed and dated by the balancer. Ensure the manager reviewed the account during the quarter; verify their initials and date of their review.

  8. When the review is completed, initial and date both the balancers worksheet and the RRACS Report 004.

  9. Provide a copy of the reports analyst review summary to management.

Account 6400 Miscellaneous Revenue Collections

  1. This account is used to record the amount of collections received as a result of judgments for fines, penalties, or court costs asserted by federal courts incident to evasion of payment of taxes, offers accepted in lieu of such liabilities, and other non- assessable specific penalty offers.

  2. This account is also used to record miscellaneous collections that are not assessable on the taxpayers account.

  3. This account is used to record all monies/revenue collected for:

    • Account 2310 - Treaty Country Receipts (20–3220)

    • Account 2320 - Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest (20–3220)

    • Account 2325 - Miscellaneous Forfeiture Receipt (20–1099)

    • Account 2345 - Presidential Election Campaign (20X5081.1)

    • Account 2350 - Public Debt (20X5081.1)

    • Account 2355 - Federal Court Ordered Restitution for Costs and Penalties (20–3220)

    • Account 2360 - Conscience Fund (20–1210)

    • Account 2365 - LIFO Payments, Rev Proc 97- 44 Settlement Payments (20–3220)

    • Account 2370 - Mortgage Subsidy Bond Receipt (20–3220)

  4. The nine individual accounts mentioned above must be balanced and maintained separately, within Account 6400.

Account 6400 Review Procedures
  1. Receive from RRACS the reports/documents needed to perform review:

    • RRACS Report 004 - Monthly General Ledger Trial Balance (MTRIAL)

    • RRACS Report 051 - General Ledger Account Details, (For each contra account listed)

    • Balanced contra account worksheet

    • Account folder or case file with maintained documentation enclosed

  2. Using the RRACS Report 004 add the contra account figures minus Account 6400 , the total should be zero. If an out of balance occurs ask the DBA to research the account journals and request a correction journal when needed.

  3. The balanced contra account worksheet will have a beginning balance of zero at the beginning of the Fiscal year (FY). The ending balance for each month will carry over to the next month.

  4. The account folders will maintain Forms 1963, 8166, 2221, 3244, 813, 2424, and copies of deposit tickets, checks, memorandums, etc. Verify the collection is maintained behind the correct contra account, ensure monies are transferred to other campuses when indicated and journalizations were created properly.

  5. Verify that the correct journal of debits and credits from the RRACS 051 are listed properly on the balanced worksheet and the ending balance equals the account general ledger net amount.

  6. If there is a difference, the RRACS 051 can be used to identify the out of balance.

  7. Ensure the worksheet is initialed and dated by the balancer. Ensure the manager or lead of the team who maintains the account has reviewed the account during the quarter by verifying their initials and date review was performed.

  8. When the review is completed, initial and date both the balancers worksheet and the RRACS Report 004.

  9. Provide a copy of the reports analyst review summary to management.

Account 6510 Over-Assessments Credited

  1. Amounts of over-assessments (abatements) of previously-assessed tax, penalty, and interest certified and credited to taxpayer accounts are recorded in this account. The account represents the total over-assessments of tax, penalty, and interest credited to taxpayer accounts during the year. Entries to this account are obtained from the SC Recaps (abatement total). They are further supported by file copies of Form 2188.

  2. This account is also used for reversals of erroneous abatements. These entries are obtained from the Form 2188 and Form 3465.

  3. This account is also used to journal reactivation of erroneous abatements when the original abatement has been written off in a prior fiscal year.

  4. External subsidiary record is the file of Form 2188s.

Account 6510 Review Procedures
  1. Review case file to verify Form 2188 is present to substantiate items in this account.

Account 6565 Refund Cancellation Credits Allowed

  1. The monies posted to this account are indicative of the processing which allows a refund cancellation credit (TC 841) to post to a taxpayer's account when a refund was issued, but never negotiated by the taxpayer.

  2. IRS is legally obligated to re-credit the taxpayer's account for the amount of the check if BFS either cannot return a credit to IRS under the terms of the competitive equality Banking Act of 1987 (Limited Pay-ability), or has returned a credit but IRS cannot locate the credit.

  3. External subsidiary record is the file of paper documents used as described above.

Account 6565 Review Procedures
  1. Review the case files for Form 3809, TXMOD print or account transcript showing all control base activity and history items.

  2. The supporting documentation should demonstrate adequate Category criteria of 1, 2, 3, or 4.

  3. For Category 3 items - the Operation Manager's signature is required.

  4. Compare the monthly balanced account worksheet to the case file item and amount. If a difference occurs the RRACS Report 051S can help identify the out of balance. Verify the General Ledger account total.

  5. Ensure the worksheet is initialed and dated by the balancer.

  6. When completed, initial and date worksheet and RRACS Report 004.

  7. Provide a copy of the review summary to management.

Account 6570 Substantiated Credits Allowed

  1. This account will record the allowance of substantiated credits not previously recorded or allowed. Substantiated payments will be approved for credit to taxpayer IMF, BMF, or NMF accounts, upon receipt in Accounting of a fully documented case file which includes such items as a receipt, cancelled check, and documentation of research performed. The case will also have the record of administrative approval and authority for the credit allowance.

  2. (Austin Only) This account is used for the substantiation of ES payments made to Guam when taxpayer is filing tax Form 1040 with the U. S. Treasurer.

  3. The external subsidiary record will be a combination of both case file types.

Account 6700 Foreign Check Collection Cost and Miscellaneous Bank Charges

  1. This account is used to record charges by the depository banks, or by the cash division of the Treasurer's office, for processing foreign checks, and other miscellaneous fees, including encoding error charges. These charges will normally be made on SF 5515.

  2. External subsidiary record is the case file.

Account 6700 Review Procedure
  1. Review and monitor as needed.

Account 6800 Excess Collections

  1. This account records payments equal to, or more than, one-year old from the IRS received date, that cannot be applied to a tax account, or year-old unapplied credits (FTD, or direct payments) transferred from unidentified revenue collections.

  2. Also included in this account are unapplied, statute-expired MF credits cleared from the file, and the reversals of these credit clearances when recorded in the same fiscal year. These statute expired clearances do not include TC 388 and TC 389 transactions.

  3. This account will be debited for amounts applied to taxpayer accounts, transferred or refunded.

  4. Account 6800 is supported by subsidiary records established on Excess Collection File (XSF) on IDRS.

Account 6800 Review Procedures
  1. Verify that the Retention of Excess Collections File Dropped Listing - URF 5001 is being maintained as stated in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), IRM 3.17.220, Excess Collections File, and Document 12990 (Records Management, Control Records Schedule for Tax Administration), (7 Years).

  2. Verify valid CCXADD cases were added within five days of receipt, and research was completed within two days of the addition.

  3. Documentation is attached or notated justifying the add per 3.17.220.1.5(5) Note, Accounting and Data Control, Excess Collections File.

Account 6801 Expired External Leads (Fresno and Cincinnati Only)

  1. This account is used to record and control expired external leads after research for proper application. The items included in this account are only those expired external leads which cannot be applied directly to MF.

  2. If any items over two years from the deposit date cannot be resolved through research and follow-up with IVO-External Leads, prepare Form 3809 to Debit 4971 and Credit 6801 for the remaining amount for each Doc ID (DT Number) in Account 4971 .

  3. The external subsidiary file documents are Form 3809's transferring monies from Account 4971 to Account 6801.

Account 6801 Review Procedures
  1. Review case folders to ensure Form 3809’s transferring monies from Account 4971 to Account 6801 are present.

Account 6905 ID Theft Erroneous Refund Write-Off

  1. This account provides internal control for identity theft disbursement losses and was effective on June 25, 2012.

  2. When write-off approval is granted this account will be debited to provide credit to Account 1545, Identity Theft Erroneous Refunds. Cases will be maintained in this account after write-off approval until fiscal year end. For additional information see IRM 3.17.243, Miscellaneous Accounting.

Account 6905 Review Procedures
  1. Verify write-off memos are signed by the Operations manager.

  2. Verify all extract listings received are stamped with journal.

Account 6907 Return Preparer Misconduct Erroneous Refund Write-Off

  1. This account provides internal control for return preparer misconduct disbursement losses and was effective on July 1, 2015.

  2. RPM write-off is systemic and will be done through a RACS batch journal. The batch journal number will be 173 and will include the doc-id. This will credit the 1547 account and debit the 6907.

Account 6907 Review Procedures
  1. Ensure the 173 batch total agrees with the Report 0157.

Account 6920 Disbursement Write-Off

  1. This account provides internal control and accountability for disbursement losses.

  2. When relief is granted this account will be debited to provide credit to Account 4910, Disbursement Loss.

  3. This account should remain in the accounting area for 2 years, then send to Records Storage with a destroy date of 6 years 2 months after Fiscal year close. (Exhibit 1.15.29–1, Item Number 165)

Account 6950 Department of justice (DOJ) Collection Hold-back
(Kansas City Only)

  1. Each year the Appropriations Act for the Department of Justice (DOJ) authorizes DOJ to retain three percent of all amounts collected pursuant to the DOJ's civil debt collection litigation activities.

  2. Account 6950 is used to record and journal the three percent amount retained by DOJ.

  3. Forms 3809 are the external subsidiary.

Account 6950 Review procedures
  1. The reports analyst must review this account monthly to ensure that the journaling and balancing actions are accurate and timely. Refer to IRM 3.17.243, Miscellaneous Accounting and IRM 3.17.63, Redesigned Revenue Accounting Control System for detail processing of this account.

  2. Pull a random sample of closed folders to review. The folders are filed in IPAC Reference number order (e.g. 14436949). Use a check sheet as part of the review process.

  3. Each folder will include:

    1. DOJ IPAC Paid Billing Statement with received date stamped (DMOPACR3–1)

    2. DOJ IPAC Support Listing (DMOPACR3-B)

    3. IPAC Transaction Report

    4. Routing Slip with journal number stamped

    5. Form 3210 (listing DLN's and the number of items)

    6. Form 2424

    7. IDRS Prints

    8. Form 813

  4. Using the IPAC Support Listing, turn to the last page and find the total amount for the 3 percent. This is the amount RRACS will journal to Account 6950.

  5. Run a tape to ensure the total of all tax Class 3 percent amounts equal the IPAC 3 percent fee total. e.g. Master File Tax (MFT) 01 = TC 1, MFT 30 = TC 2, etc.

  6. Pull Form 8166 and DPS to verify journal action for 3 percent total.

  7. Pull Form 3809 to verify 3 percent total.

  8. Check the Balancing Group 6950 monthly General Ledger and spreadsheet for any open journal action not processed timely.

  9. Provide a copy of the reports analyst review summary to management.

DOJ Criminal Restitution Payments Review Procedures
(Kansas City Only)
  1. Reviews must be performed by the front line manager throughout the month and the reports analyst must perform a quarterly review.>

    Note:

    The Reports Analyst must e-mail the completed quarterly review to the DOJ HQ Analyst.

  2. The review should:

    • Verify checks received from the clerks of courts are processed timely

    • Verify all Form 14104 are received timely from the Special Agents and are in the case file

    • Ensure case folders are prepared, for each defendant, as required by the IRM 3.17.243, Miscellaneous Accounting

    • Ensure all actions taken are documented on the history sheet

    • Confirm history sheets are signed and dated by the Technician working the case

    • Confirm history sheets have been signed and dated by the manager and the reports analyst when reviews are performed

    • Verify all money received is documented in the case history and recorded in the DOJ access Application

    • Ensure all appropriate journal actions are completed timely

    • Verify all inquiries regarding the receipt and application of payments are being handled on a timely basis

  3. Quarterly reports are required and should be retained in the Special Services Unit.

    1. The reports should capture the total number of "Unknown" cases and money amount; separate by month, also,

    2. The total "Unknown" cases associated with an active case and money amount

  4. Quarterly reports are due December, March, June and September.

Losses and Shortages

  1. The following are the three Losses and Shortages accounts:

    • Account 7610 - Embezzlement, Thefts and Negligence

    • Account 7620 - Unexplained Losses

    • Account 7650 - Deposit Discrepancies

  2. These accounts are supported by individual records in the Losses and Shortage file within RRACS. Each individual record requires its own Doc ID. Unless known to be otherwise, tax class will always be 2.

  3. Source documents related to the losses and shortages are:

    • Form 3244

    • Memorandum granting relief for losses or shortages other than by payment

    • Memorandum or letters stating losses or shortages

    • Form 2424

    • Form 813

  4. Effective July 15, 2013 a new RRACS 0576 Report titled Electronic Check Processing (ECP) Deposit Discrepancy Support List is available. This monthly report includes all open ECP (Lockbox) Deposit Discrepancies. The total money amount must equal the open case files.

Account 7610 Embezzlement and Thefts

  1. This asset account is used to record cash shortages of collections, losses from robbery or theft, embezzlement of collections, and counterfeit bills. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include:

    • TIGTA Memorandum

    • TIGTA Report of Investigation (ROI)

    • Copy of document transferring credit to the injured Taxpayer's account

    • Transcript of injured Taxpayer's account showing the credit from Account 7610

    • Copy of the Preliminary Report and any Supplemental Reports

    • Copy of the internal controls in place at the time of the loss

    • Any internal control changes made

    • Copy of court documents

    • A list of any payments made or offsets

    • History of contacts with TIGTA, Court, Department Of Labor, Atlanta DOJ lockbox and any other areas/agencies

    • Internal Revenue Code (IRC) Section 7804(c) assessment documents (non-court case)

  3. The reports analyst must review this account to ensure case files have required supporting document, and updated history sheets.

Account 7620 Unexplained Losses

  1. This asset account is used to record unexplained losses. An unexplained loss is an apparent deposit discrepancy that cannot be collected under the Federal Claims Collection Act (FCCA). When the Service cannot establish the bank's liability for a deposit discrepancy, the loss is considered unexplained. Unexplained losses of $10,000 or more require Treasury's approval.

  2. This account is supported by case history files covering the details of each recorded collection loss or shortage. Case history files will include:

    • Copies of the debit voucher

    • Copy of the Deposit ticket

    • Copy of Form 813

    • Correspondence to/from depository

    • Correspondence to/from bank

    • Copy of Taxpayer's check (front/back)

    • Transcript of the Taxpayer's account

    • Historical record of attempts to resolve the discrepancy

  3. This account is included in the accountability of the accountable officer.

  4. The reports analyst must review this account to ensure case files are complete with required supporting documentation and updated history sheets.

Account 7650 Deposit Discrepancies

  1. This asset account is used to record amounts of deposit discrepancies which are discovered by the depositories. This account may also be used when the Payment Tracer function has unresolved encoding errors, where extensive research has been completed, and the credit cannot be located. These items are considered true deposit shortages for accountability purposes. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. Account 7650 is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files may include:

    • Copy of the debit voucher

    • Copy of the Deposit ticket

    • Copy of Form 813

    • Correspondence to/from depository

    • Correspondence to/from bank

    • Copy of Taxpayer's check (front/back)

    • Transcript of the Taxpayer's account

    • Historical record of attempts to resolve the discrepancy

  3. This account is included in the accountability of the accountable officer.

  4. Review Account 7650 monthly to make sure bank contact is timely and identify discrepancies that require relief. Unresolved cases over $1,500 are sent to Counsel for a recommendation to file suit or stop collection action against the depository. If Counsel recommends termination of collection action, administrative resolution under Delegation Order 1–25 or the Department of Justice (DOJ) is requested.

Review of Miscellaneous Items

  1. Daily, research SP intranet for:

    1. Servicewide Electronic Research Program /Information Alerts

    2. IRM Updates

Non-Master File (NMF)
(Cincinnati Only)

  1. Reviewing the NMF Accounts

    • Perform Trend Analysis on various reports retained from both Automated Non Master File (ANMF) and RRACS system.

    • Analyze and identify problem areas and/or procedural issues.

    • Ensure NMF accounts are balanced monthly with the General Ledger Accounts.

    • Perform periodic reviews on documents posting to ANMF: Abatements, manual refunds, closing agreements, Form 2424 and Form 3809.

    • Review the above documents for timeliness of receipt and input.

    • Ensure IRM 3.17.46, Automated Non-Master File Accounting procedures are being followed.

    • Perform written quarterly reviews for manager and include recommendations to resolve issues.

Taxpayer Advocate Service

  1. The Submission Processing (SP) sites are responsible for working with the Taxpayer Advocate Service to resolve taxpayer issues.

  2. Cases are sent to SP via Form 12412, Operations Assistance Request (OAR). Their goal is to provide high quality account resolution and to enhance consistent application and enforcement of standards for taxpayer.

  3. The responsibility of the reports analyst is:

    • Monitor and control all Taxpayer Advocate Service case files referred to Accounting.

    • Verify the accuracy and timeliness of the request.

    • Assign the Taxpayer Advocate Service case to the appropriate team.

    • Quarterly, provide management a report of all open and aged Taxpayer Advocate Service cases.

Score Card

  1. The scorecard is for accounting use only. It is used to track the timely submission of the RRACS reports to CFO and SP HQ, and establish controls/checks and balances to ensure time lines are met.

  2. CFO/SP Scorecard consists of seven elements:

    • SF 224

    • SF 224 Supplemental

    • Statement of Difference

    • Form 3997

    • Trace ID

    • Suspense Accounts-20F3885

    • Suspense Accounts-20F3500 and 20F3502

SP/CFO Score Card - SF 224

  1. SF 224 Timely Submission

    • Green - Submission made by 12:00 PM local time on Second business day.

    • Yellow - Submission made from 12:01 PM to 2:00 PM local time on Second business day.

    • Red - Submission made after 2:00 PM local time of the second business day.

  2. Potential 224 Problem:

    • Posting occurring after SF 224 generation in RRACS.

    • Requests for the SF 224 Supplemental Report.

    • Systemic problems (Yellow and Red criteria do not apply).

    • Password problems.

    • Failing to verify computer connections to CARS.

    • Failing to ensure the CARS users are certified.

  3. SF 224 Completeness

    • Green - All RRACS transactions reported.

    • Yellow - Partial RRACS transactions reported.

    • Red - No RRACS transactions reported.

  4. SF 224 Accuracy

    • Green - All RRACS transactions accurate.

    • Yellow - Partial RRACS transactions accurate.

    • Red - No RRACS transactions accurate.

SP/CFO Scorecard - SF224 Supplemental

  1. SF 224 Supplemental Timely Submission:

    • Green - Submission made by 1:00 PM local time on third business day.

    • Yellow - Submission made from 1:01 PM to 3:00 PM local time on third business day.

    • Red -Submission made after 3:00 PM local time on the third business day.

  2. Potential SF 224 Supplemental Problems:

    • Posting occurring after SF 224 generation in RRACS.

    • Systemic problems (Yellow and Red criteria do not apply).

    • Password problems.

    • Failing to verify computer connections to CARS.

    • Failing to ensure the CARS users are certified.

  3. SF 224 Supplemental Completeness:

    • Green - All transactions completed.

    • Yellow - Partial transaction completed.

    • Red - No transactions or journals completed.

SP/CFO Score Card - Statement of Difference

  1. On Time Submission

    • Green - DBA has 3 work days to complete after the 119 journal number post to RRACS.

    • Yellow - DBA completes in 4 or 5 workdays after the 119 journal number post to RRACS.

    • Red - DBA completes in 6 workdays after the 119 journal number post to RRACS.

  2. Statement of Difference - Completeness

    • Green - All columns of information provided and accurate.

    • Yellow - Missing details or errors on 5 or less rows of differences.

    • Red - Missing details or errors on more than 5 rows of differences.

  3. Statement of Difference - Supporting Documentation

    • Green - Supporting backup for all of the required three audit months or older differences. Supporting backup for all disbursement items.

    • Yellow - Supporting backup missing for up to two items. (backup required for deposit items with audit month three months or older and all items in disbursements.

    • Red - Missing supporting backup for more than two items (backup required for deposit items with audit month three months or older and all items in disbursements.

  4. Statement of Difference - Balancing

    • Green - Report balances between RRACS and CARS.

    • Yellow - One audit month total does not balance between CARS and RRACS.

    • Red - More than one audit month total does not balance between CARS and RRACS.

  5. Statement of Difference - Aged Items

    • Green - No aged items on the report containing a confirm date more than three months old.

    • Yellow - Aged items with confirm date of four to five months old.

    • Red - Report contains confirm date greater than five months old.

SP/CFO Score Card - Form 3997

  1. 3997 - Timeliness:

    • Green - Received on or before the 25th of the month.

    • Yellow - Received between the 26th and 27th.

    • Red - Received on or after the 28th.

  2. 3997 - Completeness and Accuracy:

    • Green -Complete and accurate information provided for all columns.

    • Yellow -Incomplete and/or inaccurate information on 5 or less items.

    • Red -Incomplete and/or inaccurate information on more than 5 items.

  3. 3997 - Supporting Documentation:

    • Green -Supporting backup for all aged reconciled and unreconciled.

    • Yellow -Supporting backup for aged reconciled and unreconciled except for one item.

    • Red -No supporting backup for aged reconciled and unreconciled items, or more than one item missing.

  4. 3997 - Signature

    • Green -All parties Signed.

    • Yellow -No yellow option available.

    • Red -Not all parties signed.

  5. 3997 - Aged Reconciled Items:

    • Green - No aged reconciled items.

    • Yellow - One or more aged reconciled items reported for the first time.

    • Red - One or more aged reconciled items reported two or more consecutive times.

  6. 3997 - Unreconciled Items:

    • Green - No unreconciled item(s) or unreconciled item(s) reported for the first time.

    • Yellow - One or more unreconciled item(s) reported for the second or third consecutive time.

    • Red - One or more unreconciled item(s) reported for four or more consecutive times.

CFO Score Card-Trace-ID

  1. Trace-ID-Timely Submission:

    • Green - On the due date provided by CFO.

    • Yellow - On the following workday after due date provided by CFO.

    • Red - On the second workday after due date provided by CFO.

  2. Trace-ID-Completeness:

    • Green - All column information provided.

    • Yellow - Missing details on five or less transactions.

    • Red - Missing details on more than five transactions.

  3. Trace-ID-All Items Have Been Reconciled

    • Green - All columns information provided.

    • Yellow - Error type "Z" indicated on five or less transactions.

    • Red - error type "Z" indicated on more than five transactions.

  4. Trace-ID-All Managers Have Been Contacted

    • Green - All managers have been contacted. (YES)

    • Yellow - No yellow option available.

    • Red - All managers have been contacted. (NO)

  5. Trace-ID-Signature

    • Green - All parties signed. (Preparer/Reviewer)

    • Yellow - No yellow option available.

    • Red - Not all parties signed. (Preparer/Reviewer)

CFO Score Card - Suspense Accounts - 20F3885 Process

  1. Timeliness

    • Green - The IPAC Log sheet for suspense account 20F3885 received by 1:00 PM local time on the third business day of the following month.

    • Red - The IPAC Log sheet for suspense account 20F3885 is received after 1:00 PM local time on the third business day of the following month.

  2. IPAC Aged Items

    • Green – 30 days or less in suspense.

    • Yellow – 31 to 45 days in suspense. (Acct. Operations will be contacted.)

    • Red – 46 to 60 days in suspense. (Campus Director will be contacted.)

      Note:

      If over 60 days, a red score will be given and the Deputy Director, Submission Processing will also be contacted.

  3. Supporting Documentation

    • Green – Corrective Action Log sheet is received to support items over 45 days old on the IPAC Log sheet.

    • Red – Corrective Action Log sheet is not received to support items over 45 days old on the IPAC Log sheet.

  4. Signature

    • Green – All signatures present on IPAC Log Sheet and Corrective Action Log sheet.

    • Red – Missing signature(s) on either IPAC Log Sheet or Corrective Action Log sheet.

CFO Score Card - Percentage of Suspense for 20F3885

  1. Timeliness

    • Green - The Suspense Account Percentage Worksheet is received by 1:00 PM local time on the third workday of the month.

    • Red – The Suspense Account Percentage Worksheet is received after 1:00 PM local time on the third workday of the month.

  2. Worksheet

    • Green – 5% or less

    • Yellow – 6% to 9%

    • Red – 10% or more

  3. Signature

    • Green – All signatures present on the Suspense Account Percentage Worksheet.

    • Red – Signature(s) missing on the Suspense Account Percentage Worksheet.

CFO Score Card - Suspense Accounts 20F3500 and 20F3502 Process

  1. Timeliness

    • Green – Received Suspense Accounts 20F3500 and 20F3502 Worksheet by 1:00 PM local time on the third business day of the month.

    • Red – Received Suspense Accounts 20F3500 and 20F3502 Worksheet after 1:00 PM local time on the third business day of the month.

  2. Worksheet

    • Green – Zero amount within current month.

    • Red – A penny or more within current month.

  3. Supporting Documentation

    • Green – Supporting documentation received.

    • Red – Missing supporting documentation.

  4. Signature

    • Green – Suspense 20F3502 spreadsheet is signed by RRAC’s manager.

    • Red – Suspense 20F3502 spreadsheet is not signed by the RRAC’s manager.

SP/CFO Scorecard - Form 3996

  1. Timeliness

    • Green - Received on or before the 25th of the month.

    • Yellow - Received between the 26th and 27th.

    • Red - Received after the 28th.

  2. Completeness and Accuracy

    • Green - Complete and accurate information provided for all columns.

    • Yellow - Incomplete and/or inaccurate information provided for all columns.

    • Red - Incomplete and/or inaccurate information on more than 2 items.

  3. Supporting Documentation

    • Green - All supporting backup documents are present.

    • Yellow - All supporting backup documents are present except for one item.

    • Red - No supporting backup or more than once item is missing.

  4. Signature

    • Green - All parties signed.

    • Yellow - No yellow option available.

    • Red - Not all parties signed.

  5. Revenue Receipts Control Sheets

    • Green - Complete and accurate information provided for all columns.

    • Yellow - Incomplete and/or inaccurate information on 2 or less items.

    • Red - Incomplete and/or inaccurate information on more than 2 items.

  6. Reconciled/Unreconciled Reports

    • Green - Report submitted in balance.

    • Yellow - One month reported out of balance.

    • Red - Two or more months reported out of balance.

Trace ID Annually (March)

  1. The Trace ID requires 14 digits to be put into the RRACS system. The 14 digit Trace ID should not be all zeros.

  2. The campuses are required to review the RRACS-017 (DTDV Report) before end of month (EOM) processing to ensure that the Trace ID have the required 14 digits.

  3. If any modifications to the Trace ID are necessary, they must be completed within the monthly processing accounting period.

  4. Trace ID numbers for:

    • DCF Debit Vouchers (DV)

    • Dishonored Checks/Returned items

    • Deposit Tickets and Debit Vouchers (Adjustments)

    • Lost checks, encoding errors, enclosed not listed, etc.

  5. Debit Vouchers (Dishonored Checks/Returned Items) should get a new Trace ID number when received from the bank. Either the Dishonored Check function or the RRACS function should generate the Trace ID number on the Batch/Block Tracking System (BBTS) depending on the flow of work at their site. The Trace ID number must be generated from BBTS with system ID 20 (see IRM 3.17.10.2.3.2, Dishonored Check File (DCF) and Unidentified Remittance File (URF).

  6. Bank Discrepancies DV or DT (lost check, encoding error, enclosed not listed, etc.) should also get a new Trace ID number when received from the Bank. The function to generate the Trace ID number on BBTS will depend on the flow of work at their site (either DCF function or RRACS function or whatever function at the site processes the Bank Adjustments). The Trace ID number must be generated from BBTS with System ID 25.

  7. Manual Deposit Tickets, the Trace ID Number is assigned by BBTS. The first 14 digits represent the DT Trace ID Number and the last 6 digits represent the Transaction Sequence Number of each individual payment that comprises the Deposit Ticket. System Id "15" will be used for manual deposits. (see IRM 3.8.45.2.3, Manual Deposit Process .

    Note:

    Trace ID Number for Tracking Credits, refer to IRM 3.17.220.1.9, Excess Collections File.

  8. The RRACS Lead or Manager will contact the function that caused the Trace ID mismatch, and verify that actions are taken to prevent mismatch from reoccurring. Indicate in Column "J" only yes or no.

Trace ID Review Procedures

  1. This report is received from CFO with columns A thru H completed. This report must not be altered. All Trace ID's must remain on this report. This report will be used to alert the service center, CFO and SP HQ of any imbalances between Trace ID's and any processing problems within the service center. Annually, the Campus RRACS Unit reconciles the Campus DT/DV Reconciliation Report (J55C01) from imbalances that are $100,000 and greater.

  2. After the technician researches and completes columns I, J, and K of the Trace-ID report, they will initial as the preparer.

  3. The Lead or Manager of the employee preparing the report will review to ensure that all out of balance conditions have the correct error codes which may require reviewing the backup documentation on the haphazard basis, detail explanations exists, and the report has been signed by the preparer.

  4. The Report is then sent to the reports analyst who will pull a sufficient sample amount for their review.

  5. Of the sample collected they will review column "I" , Trace ID Error Type, to ensure proper error types were given. They will also verify column "J" was completed, indicating the function(s) that caused the Trace ID mismatch was contacted (All FUNCTIONS MUST BE CONTACTED by the 20th workday). The comments, Column "K" should be reviewed to verify details are given regarding research efforts and resolution in identifying cause of Trace ID mismatch.

  6. The reports analyst will check for signatures and ensure the report has been timely completed, reviewed and signed prior to being sent to the Operations Chief for signature.

  7. The reports analyst will return the report to the RRACS Team for the correction of any discrepancies that are found.

Points of Contact

  1. Headquarters Submission Processing Accounting Contacts:

    Chief, Accounting and Tax Payment Branch
    Chris Pascoe

    Chief, Service Center Accounting Control Section
    Tommy Hunt

    • Michele Atkins, Service Center Accounting Control Senior Analyst

    • Susan Hankerson, Losses and Shortages

    • Mary DeLuca, Non-Master File

    • Rebecca Rouse, DOJ

    • Angela Reyes, ID Theft and External Leads

    • Mike Magana, RACR

    • Crystal Noble, Credit and Account Transfers

    • Kathy Philipp, Data Control and SCCF

    • Angela Reyes, RRACS for Fresno and Andover

    • Susan Hankerson, RRACS for Austin, Ogden, and Philadelphia

    • Michael Magana, RRACS for Cincinnati, Brookhaven, and Memphis

    • Rebecca Rouse, RRACS for Atlanta and Kansas City

    Chief, Service Center Accounting Services Section
    Monica Washington

    • Sharon Andrews, Service Center Accounting Services Senior Analyst

    • Cathy Andrews, SC Deposit and DCF

    • Edna Banks, Field Deposits

    • Sarah Stanton, Excess Collections, and Unidentified

    • Rick Holmes, SC Deposit

    • Kendall Crosby, Erroneous Refunds

    • Debra Scott, Manual Refunds

    • Ronnie Maldonado, Hardcore Payment Tracers