3.17.63 Redesigned Revenue Accounting Control System

Manual Transmittal

March 06, 2019

Purpose

(1) This transmits revised IRM 3.17.63, Accounting and Data Control, Redesigned Revenue Accounting Control System.

Material Changes

(1) IRM 3.17.63. Substantial revisions were made to this IRM by incorporating procedural updates, making editorial changes for language clarification, web and email addresses. Subsequent changes were made to sections with previously issued IPUs.

(2) IRM 3.17.63. Reformatted the IRM to match the Internal Control Template. This revision altered many subsection numbers within IRM 3.17.63.

(3) IRM 3.17.63.1.5.3, RRACS User Lockout. This update notifies of the RRACS Lockout process.

(4) IRM 3.17.63.5.1.2, Trace Identification Reconciliation Procedures. Changed paragraphs 4c and 4d, to say Manager or Lead; changed paragraph 7 to say preparer.

(5) IRM 3.17.63.5.24, Seized Property (Ogden Only). Updated the processes and forms needed in making deposits from the proceeds from the sale of seized property.

(6) IRM 3.17.63.6.1, Refund Disbursements. Removed references to the SF 224, Statement of Transactions from refund disbursements.

(7) IRM 3.17.63.11.6.1, Account 6310, Miscellaneous fees. The number of accounts changed from 7 to 5 in paragraphs (2) and (4).

(8) IRM 3.17.63.16.23, Identity Theft (IDT) Erroneous Refund (ER) Reports 155A, 155B, 155C. Added this IRM section to clarify the reports.

(9) IPU 17U1351, issued 09-19-2017, IRM 3.17.63.5.8.4, Lockbox Accounting Package. Revised subsection to state the correct error report.

(10) IPU 17U1351, issued 09-19-2017, IRM 3.17.63.5.8.5, Integrated Submission and Remittance Processing (ISRP) Accounting Package. Revised subsection to state the correct error report.

(11) IPU 17U1327, issued 09-12-2017, IRM 3.17.63.5.8.4, Lockbox Accounting Package. Revised subsection to include if any errors occur.

(12) IPU 17U1327, issued 09-12-2017, IRM 3.17.63.5.8.5, Integrated Submission and Remittance Processing (ISRP) Accounting Package. Revised subsection to include if any errors occur.

(13) IPU 17U1327, issued 09-12-2017, IRM 3.17.63.5.8.6, Electronic Federal Tax Payment System (EFTPS) Accounting Package (Ogden Only). Revised subsection to include if any errors occur.

(14) IPU 17U1021, issued 06-16-2017, IRM 3.17.63.5.27, Statement of Difference (SOD) - Overview. Revised subsection for clarity.

(15) IPU 17U1021, issued 06-16-2017, IRM 3.17.63.5.27.1, Reconciliation of Deposit Differences. Revised subsection for clarity.

(16) IPU 17U1021, issued 06-16-2017, IRM 3.17.63.6.6, Statement of Difference - Disbursements. Revised subsection for clarity.

(17) IPU 17U1021, issued 06-16-2017, IRM 3.17.63.6.6.1, Reconciliation of Disbursement Differences. Revised subsection for clarity.

(18) IPU 17U1021, issued 06-16-2017, IRM 3.17.63.11, Statement of Difference Automation. Deleted and consolidated this subsection into other Statement of Difference subsections.

(19) IPU 17U1016, issued 06-15-2017, IRM 3.17.63.16.9.1, Central Accounting Reporting System (CARS) Automated Bulk Upload Program. Updated subsection for clarity.

(20) IPU 17U0739, issued 04-25-2017, IRM 3.17.63.5.14(10). Added an asterisk reference to the note.

(21) IPU 17U0739, issued 04-25-2017, IRM 3.17.63.5.6.2. Removed TFS 6653 subsection.

(22) IPU 17U0739, issued 04-25-2017, IRM 3.17.63.5.10.8. Removed duplicate paragraph reference for the 3820.29 Scorecard (Ogden only).

(23) IPU 17U0727 issued 04-24-2017, IRM 3.17.63.5.27. Updated Statement of Difference Deposit information to reflect the Statement of Difference automation information.

(24) IPU 17U0727 issued 04-24-2017, IRM 3.17.63.5.27.1. Updated Statement of Difference Reconciliation for deposits.

(25) IPU 17U0727 issued 04-24-2017, IRM 3.17.63.9.28.2. Deleted TFS 6654/TFS 6655 subsection.

(26) IPU 17U0727 issued 04-24-2017, IRM 3.17.63.6.6. Updated Statement of Difference Disbursement information to reflect the Statement of Difference automation and the creation of new RACS Reports 0652 and 0653.

(27) IPU 17U0727 issued 04-24-2017, IRM 3.17.63.6.6.1. Updated Statement of Difference Reconciliation for disbursements.

(28) IPU 17U0727 issued 04-24-2017, IRM 3.17.63.7. Added a new subsection for the Statement of Difference automation and the creation of new RACS Reports 0652 and 0653.

(29) IPU 17U0709 issued 04-19-2017, IRM 3.17.63.5.10. Added new subsection Informant Reward Account (Ogden Only).

(30) IPU 17U0709 issued 04-19-2017, IRM 3.17.63.5.10.9. Added Informant Reward Scorecard Criteria for Appropriation 20X5433.

(31) IPU 17U0709 issued 04-19-2017, IRM 3.17.63.5.10.3. Removed paragraph 5, Statement of Difference Scorecard Criteria for Balancing (Reconciles to RRACS and Treasury).

(32) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.9.2.2. Changed Trace ID reconciliation from monthly to annually.

(33) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.10.3. Removed Pen and Ink references.

(34) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.9.11.6. Updated information on the treasury account symbol 20F3885 process.

(35) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.9.11.7(1). Changed PST to local time.

(36) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.9.11.8. Added a subsection for the scorecard - suspense account 20F3820.29.

(37) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.14.4.1. Updated the Month End reporting information.

(38) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.16.2.23(4). Account 2350 updated with instructions and email.

(39) IPU 15U1220, issued 07-24-2015, IRM 3.17.63. Added email addresses to this section.

(40) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.22.9.1. Updated information about the Central Accounting Reporting System (CARS) automated bulk upload.

(41) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.4. Added Return Preparer Misconduct (RPM) to the list of Acronyms.

(42) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.12.3. Added batch journals 172 (Return Preparer Misconduct) and 173 (Return Preparer Misconduct Write-Off).

(43) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.17. Added general ledger accounts 1547 (Return Preparer Misconduct), and 6907 (Return Preparer Misconduct Write-Off).

(44) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.19.1.1. Added batch journals 172 and 173 to the Automated Posting Records.

(45) IPU 15U1220, issued 07-24-2015, IRM 3.17.63.21.1. Added general ledger accounts 1547 and 6907 to the list of external subsidiary records.

(46) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.5.7. Removed references to the SF 224 process.

(47) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.6.1. Replaced RFC confirmation listing with TDO confirmation listing, and replaced references to the SF 224 with the RRACS 031 Report.

(48) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.8(2). Updated information on the CARS direct reporters.

(49) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.11(3). Updated list of monthly reports rated on the Scorecard.

(50) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.11.1. Updated instructions for the Month End balancing for the supplemental treasury submissions.

(51) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.11.2. Updated instructions for supplemental treasury submissions.

(52) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.11.3. Updated instructions for the statement of difference summary report and deposit/disbursement reconciliation report.

(53) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.11.6. Updated instructions for HQ CFO scorecard - suspense account 20F3885.

(54) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.11.7. Updated instructions for HQ CFO scorecard - suspense account 20F3500 and 20F3502.

(55) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.28. Updated Information on the Statement of Difference.

(56) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.9.28.1. Updated information on the Reconciliation of Deposit Differences.

(57) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.1(6). Removed references to the SF 224 from Refund Disbursements.

(58) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.2.5(1). Replaced SF 224 with the treasury supplemental.

(59) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.2.6. Removed subsection, Agency Transfers Form 1081 JV Increase, JV Decrease.

(60) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.3(6). Replaced SF 224 with the manual CARS CTA adjustment.

(61) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.6. Updated information on statement of difference summary report and deposit and disbursement reconciliation reports.

(62) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.6.1. Updated instructions for reconciliation of disbursement differences.

(63) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.10.6.2. Replaced SF 1081 (Voucher and Schedule of Withdrawals & Credits) with Intragovernmental Payment and Collection System (IPACS).

(64) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.12.1(5). Replaced SF 224 with RACS 020, 020A and 020B, Statement of Transaction reports.

(65) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.12.9. In the batch journal input windows, removed window 130, daily wire and window 131, and SF 224, Statement of Transactions.

(66) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.13.1. Replaced references to the SF 224 with the End of Month Reports.

(67) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.13.3. Added a scorecard contingency plan to the disaster recovery contingency plan.

(68) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.14(5). Replaced references to the SF 224 with the RACS 020 report.

(69) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.14.4. Replaced references to the SF 224 with the Month End reports, and replaced transmission of SF 224 with emailing of the Month End balancing status to the HQ CFO office.

(70) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.14.4.1. Updated instructions for the Month End reports.

(71) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.2.21(5). Replaced SF 224 with CARS Bulk Upload.

(72) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.2.23(4). Replaced SF 224 with the End of Month Balancing and RACS 020, Statement of Transactions Report.

(73) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.2.35(2). Replaced reported on the SF 224 with reporting directly to CARS.

(74) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.2.36(2). Replaced reported on the SF 224 with reporting directly to CARS.

(75) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.1(3). Replaced SF 224, Statement of Transaction process with CARS.

(76) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.2(3). Replaced SF 224, Statement of Transaction process with CARS.

(77) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.3(3). Replaced SF 224, Statement of Transaction process with CARS.

(78) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.4(2). Replaced SF 224, Statement of Transaction process with CARS.

(79) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.5(3). Replaced SF 224, Statement of Transaction process with CARS.

(80) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.6(3). Replaced SF 224, Statement of Transaction process with CARS.

(81) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.7(3). Replaced SF 224, Statement of Transaction process with CARS.

(82) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.9(3). Replaced SF 224, Statement of Transaction process with CARS.

(83) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.5.10(3). Replaced SF 224, Statement of Transaction process with CARS.

(84) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.7.1(4). Replaced SF 224, Statement of Transaction process with CARS.

(85) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.7.2(10). Replaced SF 224, Statement of Transaction process with CARS.

(86) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.16.7.14(3). Replaced SF 224, Statement of Transaction process with CARS.

(87) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.2(1). Removed references to the online daily wire and the SF 224, Statement of Transactions.

(88) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.7. Replaced the SF 224, Statement of Transactions with the RACS 020 report.

(89) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.8. Updated the instructions for the statement of difference summary report and the deposit/disbursement reconciliation report.

(90) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.9. Replaced the RACS 018 and SF 224 with the RACS 020, Statement of Transaction report.

(91) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.9.1. Updated Central Accounting and Reporting the bulk upload instructions.

(92) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.10. Removed subsection SF 224, Statement of Transactions, Supplemental Report for Refund Account 20X0903 (RACS 018).

(93) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.11. Replaced the SF 224, Statement of Transactions with the RACS 020 report.

(94) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.22.14. Replaced the SF 224, Statement of Transactions with the Central Accounting Reporting System (CARS).

(95) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.22.15. Added the Suspense Report.

(96) IPU 15U1032, issued 06-17-2015, IRM 3.17.63.21.22. Replaced the RACS 018 and the SF 224, Statement of Transactions with the RACS 020 report.

(97) IPU 15U1032, issued 06-17-2015, IRM 3.17.63-1. Added BFS (the Fiscal Service) to the IRM.

(98) IPU 15U1032, issued 06-17-2015, IRM 3.17.63-2. Removed Form 6652, Statement of Difference for Deposits, Disbursement Transactions.

(99) IPU 15U1032, issued 06-17-2015, IRM 3.17.63-5. Removed window 130 (Daily Wire), and window 131 (Supplemental Form 224) from the Batch Journal input window options.

(100) IPU 15U0360, issued 02-23-2015, IRM 3.17.63. Changed Redesign Custodial Accounting Control System to Redesigned Custodial Accounting Control System.

(101) IPU 15U0289, issued 02-09-2015, IRM 3.17.63.9.11.2(1). Changed the time of when the supplemental is due.

(102) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11(3). Added paragraph (b) SF 224 Supplemental, Statement of Transaction, and deleted references to the SF 6652.

(103) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11.1. Added paragraphs (3) and (4) for completeness and accuracy.

(104) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11.2. Added SF 224 Supplemental, Statement of Transactions.

(105) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11.3. Added various updates to the Statement of Difference Reconciliation Report, and deleted references to the SF 6652 process.

(106) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11.4. Revised paragraph (4) to state accuracy. Added paragraphs (6) Aged Reconciled Items, and (7) Unreconciled Items.

(107) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11.6. Added HQ CFO Scorecard for the Suspense Account 20F3885 Process.

(108) IPU 15U0281, issued 02-06-2015, IRM 3.17.63.9.11.7. Added HQ CFO Scorecard for the Suspense Account 20F3502 Process.

(109) IPU 15U0067, issued 01-08-2015, IRM 3.17.63.11.1(2). Changed the word he to the word the.

(110) IPU 15U0067, issued 01-08-2015, IRM 3.17.63.16.2.24(2). Added that the documentation should go to the Kansas City Special Services team.

(111) IPU 15U0067, issued 01-08-2015, IRM 3.17.63.21.4. Paragraphs (3) and (4) has been deleted, thus renumbering the other paragraphs.

(112) IPU 14U1407, issued 10-03-2014, IRM 3.17.63.21.4(2). Changed reports analyst to DBA.

(113) IPU 14U1406, issued 10-01-2014, IRM 3.17.63.16.6.1(2),(3). Changed the amount of accounts from 7 to 5.

(114) IPU 14U1396, issued 09-30-2014, IRM 3.17.63.21.6(5). Added a signature, title, and date for the SPC Reports analyst.

(115) IPU 14U1393, issued 09-29-2014, IRM 3.17.63.16.6.1(c) and (d). Deleted 2380 New Installment Agreement User Fee (20X5432.1), and Reinstated Installment Agreement User Fee (20X5432.2) from the list.

(116) IPU 14U1392, issued 09-26-2014, IRM 3.17.63.22.4(2). Added the daily trial balance report 003 to the list so it is reviewed for accuracy.

(117) IPU 14U1269, issued 09-19-2014, IRM 3.17.63.22.6(5). Paragraph 5 added to clarify the reports are reviewed by the reports analyst before it is faxed or emailed to the HQ CFO office and the HQ RRACS team.

(118) IPU 14U1269, issued 09-19-2014, IRM 3.17.63.9.2.3. This section has been deleted.

(119) IPU 14U0608, issued 04-02-2014, IRM 3.17.63.6.1(3) b. Added the Control-D file, RPA4140. This clarifies what other files can be provided.

Effect on Other Documents

IRM 3.17.63, dated April 1, 2014 is superseded. This IRM also incorporates the following procedural updates issued from April 2, 2014 through September 19, 2017: 14U0608, 14U1269, 14U1392, 14U1393, 14U1396, 14U1406, 14U1407, 15U0067, 15U0281, 15U0289, 15U0360, 15U1032, 15U1220, 17U0709, 17U0727, 17U0739, 17U1016, 17U1021, 17U1327, and 17U1351.

Audience

Submission Processing

Effective Date

(03-06-2019)

Ursula S. Gillis
Chief Financial Officer

Program Scope and Objectives

  1. Purpose: This Internal Revenue Manual (IRM) provides policies and procedures for the Redesigned Revenue Accounting Control System (RRACS).

  2. Audience: The primary users of this IRM are Submission Processing (SP) staff.

  3. Policy Owner: The Chief Financial Officer (CFO) owns these IRM policies.

  4. Program Owner: Financial Management, Custodial Accounting Office, Custodial Systems and Analysis Section is the group responsible for overseeing this IRM, and providing guidance.

  5. Primary Stakeholders: Custodial Accounting Control Units throughout the CFO Submission Processing Centers (SPC).

  6. Primary Goals: To provide efficient work flow guidance, ultimately achieving reporting accuracy for revenue and refunds.

Background

  1. This IRM describes the accounting procedures for the Redesigned Revenue Accounting Control System (RRACS). It covers the maintenance and responsibility of SPC general ledger accounts, specific accounting programs, reports and internal controls. These controls are necessary to comply with all administrative and legal requirements of the IRS, the Department of the Treasury, and the Government Accountability Office (GAO).

  2. Redesigned Revenue Accounting Control System (RRACS) Overview - RRACS is a automated system used to provide accounting control for all custodial accounting transactions. The database, located at ECC-MTB, consists of general ledger accounts, plus a variety of internal records used for balancing and reporting. Formatted reports can be generated for all regular accounting financial reports.

    Note:

    IRM deviations must follow IRM 1.11.2.2.4, When procedures deviate from the IRM

    .

Responsibilities

  1. This section provides responsibilities for:

    1. Chief Financial Officer

    2. Deputy CFO

    3. Associate CFO for Financial Management

    4. Deputy ACFO for Custodial Financial Management

    5. Director, Custodial Accounting Office

    6. Chief, Custodial Systems and Analysis section

    7. Enterprise Computing Center, Martinsburg (ECC-MTB)

    8. Submission Processing Center

Chief Financial Officer
  1. The CFO is responsible for establishing financial policy for the management and reporting of the custodial assets.

Deputy Chief Financial Officer
  1. The Deputy CFO provides direction on financial management, ensures financial products are properly presented and maintained, and ensures financial systems are compliant with federal standards.

Associate Chief Financial Officer for Financial Management
  1. The Associate Chief Financial Officer for Financial Management is responsible for establishing, maintaining, and ensuring compliance with custodial revenue policy and procedures, custodial accounting operations and financial reporting.

Deputy Associate Chief Financial Officer for Custodial Financial Management
  1. The Deputy Associate Chief Financial Officer for Custodial Financial Management ensures proper accounting and timely reporting of IRS custodial activities.

Director, Custodial Accounting Office
  1. The Director, Custodial Accounting Office is responsible for developing and issuing custodial revenue policy for custodial accounting operations and financial reporting.

Chief, Custodial Systems and Analysis Section
  1. The Chief, Custodial Systems and Analysis Section is responsible for coordinating custodial revenue accounting activities focusing on CFO headquarters and Submission Processing Center’s RRACS accounting transactions and reconciliations.

Enterprise Computing Center, Martinsburg (ECC-MTB)
  1. The Enterprise Computing Center, Martinsburg (ECC-MTB) is responsible for:

    1. Maintaining Master File (MF) and Customer Account Data Engine (CADE) records for taxpayers.

    2. Processing accounting and data control for Individual Master File (IMF), Business Master File (BMF), and CADE records.

    3. Generating accounting adjustments, transactions and abstracts of revenue receipts.

    4. Maintaining a Reciprocal Accounting Control Record (RACR) with each campus.

    5. Preparing separate SF 1166 (Voucher and Schedule of Payments) or Secure Payment System (SPS) prints for the total amounts of overpayment principal and interest transcribed to BMF and IMF refund files.

Submission Processing Center
  1. Each Submission Processing Center is responsible for functioning as a separate accounting operation, using an identifiable numeral.

  2. The Director is accountable for revenue receipts and repayments deposited to his/her credit for application to BMF, IMF and Non Master File (NMF) accounts.

  3. Together, each center is responsible for:

    1. Maintaining a general ledger and subsidiary records, reconciling the general ledger accounts and subsidiary records or files each month.

    2. Controlling all accounting documents within the campus for entry to the BMF, IMF, NMF accounts, and for journaling and posting to the general ledger.

    3. Receiving or initiating control and processes for all BMF, IMF, and NMF accounting transactions involving other campuses.

    4. Receiving and controlling BMF, IMF, NMF accounting outputs including required journaling and posting to the general ledger.

    5. As necessary, initiating or processing account transfers, account adjustments, debit or credit transfers, statutory clearances, etc., related to BMF, IMF and NMF accounts.

    6. Preparing Form 23C (RACS Report 006) and Form 2188 (RACS Report 024) schedules for manual refunds, transcripts, and accounting reports and other accounting documents, as required.

Program Management and Review

  1. Program Reports: 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 safeguarded against waste, fraud and abuse.

  2. Program Effectiveness: Managers are responsible for conducting operational or management control reviews to identify weaknesses and mitigate known risks. Managers must perform program or spot reviews for accuracy and completeness. Problems identified should be discussed with the appropriate functional area for corrective action. At least one program review should be performed each quarter by the manager, lead or the accounting reports analyst.

Program Controls

  1. Federal Government Accounting Requirements, 31 USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency, and states that the head of each executive agency shall establish and maintain systems of accounting and internal control that provide:

    1. Full disclosure of the financial results of the agency's activities.

    2. Adequate financial information needed for the agency's management purposes.

    3. Effective control over, and accountability for, all funds, property, and other assets for which the agency is responsible, including appropriate internal audit.

    4. Reliable accounting results serving as the basis for preparation and support of budget requests, controlling the execution of its budget, and providing financial information required by the President or other designated authority.

    5. Suitable integration of the agency's accounting with Treasury’s accounting in connection with the central accounting and reporting responsibilities imposed by the Secretary of the Treasury.

  2. These systems must conform to the accounting principles, standards and related requirements, as prescribed by the Comptroller General of the U.S. Historically, these have been reflected in the Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies.

  3. The accounting system of an executive agency or any of its component parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize, and simplify accounting systems in the federal government are exercised under a joint program sponsored by the Comptroller General, the Secretary of the Treasury, and the Director of Office of Management and Budget (OMB). This program contemplates the full development of sound accounting within each executive agency as a working arm of management, and in terms of financial information and control. It envisions an integrated pattern of accounting and financial reporting for the government that is responsive to executive and legislative needs.

  4. The established accounting and reporting principles, standards, and basic procedures take into consideration the various areas of responsibility involved, the elimination of overlapping operations and paper work, and the broader application of efficient methods and techniques in accounting operations throughout the government. Integration of revenue accounting data with central accounts maintained by the Bureau of the Fiscal Service (BFS) is accomplished primarily by the submission of monthly reports of deposit and classified collections, and of disbursements from the refund appropriations.

On-Site Audit by Government Accountability Office
  1. The Government Accountability Office (GAO) audits the campus tax transactions at the location where the operations are conducted and where the accounting records are maintained.

  2. Treasury Disbursing Office (TDO) confirmation listing, RACS 031 (Confirmed Disbursement Report), and the related source documents (for example: the original refund disbursement and check cancellation schedules) remains at the accounting section in accordance with 44 USC.

  3. The RACS 031 (Confirmed Disbursement Report) and the related source documents are maintained in the following accounting period order:

    1. Original SF 1166 (Voucher and Schedule of Payments)

    2. Original SF 1098 (Schedule of Canceled Checks), SF 1184 (Unavailable Check Cancellation) or the Control-D file, RPA4140, if originals are not provided; Original SF 1081 (Voucher and Schedule of Withdrawals and Credits), or Form 3813 (Refund Cancellation Schedule).

  4. When requested by GAO, the campus involved is responsible for producing the following records:

    1. Business Master File (BMF), Individual Master File (IMF), and CADE (Customer Account Data Engine) and CADE 2 recaps of Assessments, Abatements and Other Post-Journalized Transactions.

    2. Form 8485 (Assessment Adjustment Case Record), Restricted Interest cases that are sanitized.

    3. Form 2285 (Concurrent Determination of Deficiencies), Restricted Interest cases that are sanitized.

  5. GAO auditors may request transcripts for specific individual cases to verify the accuracy of the refund interest computation. The IRS must redact individual case information.

  6. The RRACS section is required to maintain refund transaction records not audited in the campus file or the Federal Records Center (FRC) for GAO audit purposes. Refund transaction records that GAO audited may be transmitted to the FRC or retired in accordance with IRM 1.15.4.2, Retiring Records to the FRC. All GAO refund and revenue files are maintained in a secure locked cabinet at the headquarters office.

Redesigned Revenue Accounting Control System (RRACS) Overview
  1. RRACS is a automated system used to provide accounting control for all custodial accounting transactions. The database, located at ECC-MTB, consists of general ledger accounts, plus a variety of internal records used for balancing and reporting. Formatted reports can be generated for all regular accounting financial reports.

RRACS Inventory Accounts
  1. RRACS must never contain any taxpayer information. Do not use taxpayer ID numbers or any other identifying information for doc ID case numbers.

  2. For all inventory accounts, never use a Database Administrator (DBA) reversal window to reverse an action or a modification window to correct an open case. First close the case, then reopen the case.

  3. Maintain a history sheet to document actions for all inventory accounts that are open over 30 days.

RRACS Processing Accounting Applications
  1. The accounting application window records the transfer of debits/credits between various general ledger accounts and between campuses.

Redesigned Revenue Accounting Control System (RRACS) Authorized Access
  1. The RACS manager periodically monitors RRACS access requests to validate access is only shared with individuals that require it.

RRACS Security Accreditation and Authorization
  1. The campus technician has:

    1. Update capabilities to the RRACS database.

    2. Access to selected server programs.

    3. Access to their assigned campus.

    4. Access to SPC reports menu.

  2. The campus database administrator (DBA) has:

    1. Update capabilities to the RRACS database.

    2. Access to all server programs.

    3. Access to all functions on the DBA main menu (except super windows).

    4. Access to his/her assigned campus.

    5. Update capabilities in the account period between the 1st and 15th of a month, and only for his/her assigned campus.

    6. Access only to the SPC reports menu.

  3. The CFO headquarters analyst has:

    1. Read Only access to the RRACS database.

    2. Access to server programs that do not update the RRACS database.

    3. Access to all service centers.

    4. Access to both SPC and HQ reports menu.

RRACS User Lockout
  1. Campus DBAs will lockout specific user groups from RRACS for internal control purposes. The user groups are profiled into three groups:

    1. Campus DBA, either the system as a whole or just the accounting period

    2. Campus Technician

    3. Read Only

  2. CFO applies a lockout to RRACS during the following business event or developer notification request for:

    1. System transmittal upgrade

    2. Month end close process

  3. CFO notifies RRACS users prior to any lockout and then notifies users once RRACS is available again.

Terms/Definitions

  1. In this IRM, the terms below have the following meaning:

    1. Journal Control - Identifying information relating to transaction activity.

      Note:

      For RRACS, transaction activity includes journals, reversals or confirmations. The Journal Number includes activity count, posting number and system date.

    2. Journal Entry - A money amount and associated information pertaining to a specific ledger posting to the IRS account.

    3. State Income Tax Levy Program (SITLP) - A compliance program that levies state income tax refunds to satisfy federal tax liabilities.

    4. Wire Transfer - A method of transferring money from one financial institution to another, replacing checks and other traditional methods of moving money.

Acronyms

  1. This is a list of acronyms used throughout this IRM:

    ACRONYM DEFINITION
    AIS Automated Insolvency System
    AKPFD Alaska Permanent Fund Dividend Levy
    ALC Agency Location Code
    AMTAP Accounts Management Taxpayer Assurance Program
    ANMF Automated Non Master File
    ANSPC Andover Submission Processing Campus
    AOI Area Office Inventory
    AOIC Automated Offer in Compromise
    AORR Area Office Remittance Register
    ATSPC Atlanta Submission Processing Campus
    AUSPC Austin Submission Processing Campus
    BBTS Batch Block Tracking System
    BFC Beckley Finance Center
    BFS Bureau of Fiscal Services or the Fiscal Service
    BMF Business Master File
    BSC Brookhaven Service Center
    CADE Customer Account Data Engine
    CARS Central Accounting Reporting System
    CDDB Custodial Detail Database
    CFO Chief Financial Officer
    CIO Centralized Insolvency Operations
    CIR Collections Information Repository
    CIRA Central Image Research Archive
    COIC Centralized Offer-In-Compromise
    CRL Control Record List
    CSA Custodial Systems and Analysis
    CSCO Compliance Services Collections Operations
    CSPC Cincinnati Submission Processing Center
    CTA Classification Transaction and Accountability
    DBA Database Administrator
    DCF Dishonored Check File
    DDIA Direct Debit Installment Agreements
    DFR Deposit Fund Record
    DLN Document Locator Number
    DMF Debtor Master File
    DMRS Deposit Message Retrieval System
    DMS Debit Management Section
    Doc ID Document Identification Number
    DOJ U.S. Department of Justice
    DPS Daily Posting Summary
    DT Deposit Ticket
    DV Debit Voucher
    DWR Daily Wire Record
    ECC Enterprise Computing Center consists of ECC-MTB (Martinsburg) and ECC-MEM (Memphis)
    EFT Electronic Funds Transfer System
    EFTPS Electronic Federal Tax Payment System
    ELF Electronic Filing System
    ELVIS Electronic Verification and Image Services
    EO Exempt Organizations
    EOD End of Day
    EOM End of Month
    EOMF Exempt Organizations Master File
    EP Employee Plans
    EPCF Electronic Payment Control File
    FA Field Assistant
    FBA Fund and Budget Clearing Account Record
    FBAR Foreign Bank Account Records
    FDCR FRB Day Classification Report
    FDS FEDWIRE Deposit System
    FOD Foreign Operations District
    FPLP Federal Payment Levy Program
    FRB Federal Reserve Bank
    FRC Federal Records Center
    FSPC Fresno Submission Processing Center
    FTD Federal Tax Deposit
    FUTA Federal Unemployment Tax Act
    GAO Government Accountability Office
    GMF Generalized Mainline Framework
    GTRL Good Tape Release List
    GUF Generalized Unpostable Framework
    HHS U.S. Department of Health and Human Services
    HQ Headquarters
    ICE Informant Claims Examination
    IDRS Integrated Data Retrieval System
    IDT Identity Theft
    IMF Individual Master File
    IPAC Intragovernmental Payment and Collection System
    IPAC/D Intragovernmental Payment and Collection Disbursement
    IPAC/R Intragovernmental Payment and Collection Receipt
    IRA Individual Retirement Account
    IRC Internal Revenue Code
    ISRP Integrated Submission and Remittance Processing
    IT Information Technology
    ITIN Individual Taxpayer Identification Number
    IVO Integrity and Verification Operation
    JE Journal Entry
    JV Journal Voucher
    KCSPC Kansas City Submission Processing Campus
    KISAM Knowledge Incident/Problem Service Asset Management
    MF Master File
    MSC Memphis Service Center
    NHQ National Headquarters
    NMF Non Master File
    NMI Northern Mariana Islands
    NTRR Net Tax Refund Report
    OCSE Office of Child Support Enforcement
    OIC Offer-In-Compromise
    OMB Office of Management and Budget
    OSPC Ogden Submission Processing Center
    OTCnet Over the Counter Network
    P&A Program and Analysis
    PCC Paper Check Conversion
    PFIC Passive Foreign Investment Company
    PSC Philadelphia Service Center
    R&C Receipt and Control
    RACR Reciprocal Accounting Control Record
    RACS Revenue Accounting Control Section
    RAIVS Return and Income Verification Services
    RFC Record Finance Center
    RFC Regional Finance Center
    RPS Remittance Processing System
    RPM Return Preparer Misconduct
    RRACS Redesigned Revenue Accounting Control System
    RRB Railroad Retirement Board
    RRT Railroad Retirement Taxes
    RS Reconciliation Sheet
    SC Service Center
    SCCF Service Center Control File
    SFDCR Subsequent FRB Day Classified Report
    SITLP State Income Tax Levy Program
    SJ Source Journal
    SOD Statement of Difference
    SOI State of Innovation
    SP Submission Processing
    SPC Submission Processing Center
    SPS Secure Payment System
    TAC Taxpayer Assistance Center
    TAS Treasury Account Symbol
    TDA Taxpayer Delinquent Account
    TDCS Tape Data Control Sheet
    TDO Treasury Disbursing Office
    TEP Tape Edit Processor
    TFCS Treasury Financial Communications System
    TGA Treasury General Accounting
    TID Trace Identification Number
    TIPRA Tax Increase Prevention & Reconciliation Act of 2005
    TOP Treasury Offset Program
    TRACS Treasury Receivable Accounting and Control System
    URF Unidentified Remittance File
    USC United States Code
    VI Territory of U.S. Virgin Islands
    W&I Wage and Investment
    XSF Excess Collection File

Related Resources

  1. For additional related resources, please refer to IRM 3.17.64.3.3, Related IRMs.

Forms

  1. This is a list of forms used throughout this IRM:

    NUMBER TITLE
    Form 23C (RACS 006) Summary Record of Assessment/Assessment Certificate
    SF 215-A or - C Deposit Ticket
    SF 224 Statement of Transactions
    Form 514B Credit Transfer Voucher
    Form 656 Officer-In-Compromise Application Fee
    Form 783 Remittance Register
    Form 784 Recapitulation of Remittances
    Form 813 Document Register
    Form 813A Recap of Document Registers
    Form 843 Claim for Refund & Request for Abatement
    SF 1081 Voucher and Schedule of Withdrawals & Credits
    SF 1098 Schedule of Cancelled or Undelivered Checks
    Form 1120PC U.S. Corporation Income Tax Return
    SF 1166 Voucher and Schedule of Payments
    Form 1184 Accomplished Refund Cancellation Schedule
    Form 1185 Schedule of Unavailable Check Cancellation Credits
    Form 1331 Notice of Adjustment
    Form 1331B Notice of Adjustment (not on MF)
    Form 1963 Collection Register
    Form 1983 Deposit Fund Record-Property Sales and Deposits
    Form 2158 Credit Transfer Voucher
    Form 2162 (RACS 025) Summary of Assessment Certificates Issued
    Form 2162 (RACS 025A) Summary of Assessment Certificates Issued for Fiscal Year Ending
    Form 2188 (RACS 024) Voucher & Schedule of Overpayment and Over assessments
    Form 2221 Schedule of Collections
    Form 2236 Deposit Fund Record-Miscellaneous Deposit Funds
    Form 2276 Collateral Deposit/Release Record
    Form 2284 FTD Bank Deposits (Advice of Credit)
    Form 2285 Concurrent Determination of Deficiencies
    Form 2424 Account Adjustment Voucher
    Form 2433 Notice of Seizure
    Form 2436 Seized Property Sale Report
    Form 2515 Record of Offer-in-Compromise
    Form 3177 Notice of Action for Entry on MF
    Form 3210 Document Transmittal
    Form 3244 Payment Posting Voucher
    Form 3245 Posting Voucher-Refund Cancellation or Repayment
    Form 3289 Authorization for Release of Magnetic Tape File
    Form 3460 Transmittal Form
    Form 3465 Adjustment Request
    Form 3552 Prompt Assessment Billing Assembly
    Form 3753 Manual Refund Posting Voucher
    Form 3809 Miscellaneous Adjustment Voucher
    Form 3813 Accomplished Refund Cancellation Schedule
    Form 3997 Reconciliation of General Ledger Accounts
    Form 4028 SCCF Adjustment Record (Format Code 216)
    Form 4506 Request for Copy of Tax Return
    Form 4710-CG Automated Offer-in-Compromise Record
    Form 4830 IDRS Posting Document
    Form 4861 NMF Block Summary
    Form 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands
    Form 5344 Examination Closing Record
    Form 5461 Report of Action Under Public Law 93-647
    SF 5515 Debit Voucher
    Form 5526 FTD Adjustment Action Request
    Form 5804 (FRB) Day Classified Report Balancing Proof
    Form 5805 Subsequent Day Classified Report Balancing Proof Sheet
    Form 6008 Fee Deposit for Outer Continental Shelf Oil
    Form 6009 Quarterly Report of Fees Due on Oil Production
    Form 6168 General Ledger Reconciliation with MCC RACR
    Form 8164 Transmittal Replacement
    Form 8166 Input Reconciliation Sheet
    Form 8167 Supplemental Input Reconciliation Sheet
    Form 8485 Assessment Adjustment Case Record
    Form 8758 Excess Collections File Addition
    Form 13479 COIC Remittance Tracking Report

Agency Location Codes

  1. The Department of the Treasury Agency Location Codes (ALC) assigned to each campus for deposit and disbursement activities:

    CAMPUS Agency Location Code
    Andover 20090800
    Atlanta 20090700
    Austin 20091800
    Brookhaven 20091900
    Cincinnati 20091700
    Fresno 20098900
    Kansas City 20090900
    Memphis 20094900
    Ogden 20092900
    Philadelphia 20092800

Treasury Account Symbols (TAS)

  1. The Treasury Account Symbols (TAS) represent agencies’ and bureaus’ individual appropriations, receipts, and other fund accounts. Agencies post appropriations or spending authorizations granted by Congress to these accounts. When money is collected under the accountability of the campus director, it must be entered into one of the RRACS receipt accounts. The receipt account records the money sent to Treasury for the current fiscal year. These accounts accumulate data by the TAS and represent the receipts of individual appropriations and fund accounts.

  2. As of October 2014, all IRS ALCs became direct reporters in the Central Accounting Reporting System (CARS). As a result, all disbursement, collection and Intragovernmental Payment and Collection (IPAC) transactions are reported directly to CARS from the financial institutions by TAS. IRS only has the capability to send reclassifications to CARS using the CTA (Classification Transaction and Accountability) adjustments.

  3. This is a list of TAS used throughout this IRM.

    TAS Description
    200101 Tax Class 1 Withholding
    200110 Tax Class 2 individual Income
    200111 Tax Class 3 Corporation Income
    200152 Tax Class 4 Excise
    200153 Tax Class 5 Estate and Gift
    200130 Tax Class 7 Tax on Carriers and Their Employees
    200121 Tax Class 8 Federal Unemployment Tax
    201060 Unclaimed Funds
    201099 Miscellaneous Forfeiture Receipt
    201210 Conscience Fund
    202411 EP/EO User Fees
    203220 Duplication of EOMF Documents, Miscellaneous Receipts. This includes treaty country receipts, private activity bond receipts, PFIC receipts, FBAR payments, Form 8038-T arbitrage rebate payments not on MF, federal court-ordered restitution for costs and penalties, LIFO payments, mortgage subsidy bond receipts and other miscellaneous remittances not attributable to fees or assessed tax, penalty and interest.
    20F3820 EFTPS Unclassified/Insolvency
    20F3820.09 Kansas - FTD Unclassified
    20F3820.17 Cincinnati - FTD Unclassified
    20F3820.18 Austin - FTD Unclassified
    20F3820.29 Ogden - FTD Unclassified
    20F3844 DOJ IPAC Suspense
    20F3880.09 Budget Clearing, Refund
    20F3885.11 DMF Offsets
    20X159 Disaster Tax Relief
    20X0903 Principal Amount Refunded
    20X0904 Interest Paid on Principal Amounts Refunded
    20X1807 Miscellaneous Revenue
    20X5080.1 Public Debt
    20X5081.1 Presidential Election Campaign Receipts
    20X5099 Anti-Drug Special Deposit Funds Receipts/Disbursements
    20X5432.1 New Installment Agreement User Fees
    20X5432.3 Reinstated Installment Agreement User Fees
    20X5432.4 OIC User Fees
    20X5432.5 EP/EO User Fee Increase 990 CD User Fees
    20X5432.6 Disbursement, Reserved
    20X5433 Informant Rewards, Receipts/Disbursements
    20X6737 Cover Over Receipts - NMI
    20X6738 Cover Over Receipts - VI
    20X6740 Cover Over Receipts - Guam
    20X6741 Cover Over Receipts - Samoa
    20X6877 Photocopy Fees (Fiscal Service does not recognize the symbol 20X5432.2 as photocopy fees so this symbol must not be used.)
    20X6879 Deposit Funds
    20X8185 Oil Spill (Austin only)
    75X6288 Child Support Receipts

Deposit Discrepancies

  1. This section provides the procedures for tracking, processing, depositing, packaging, reporting, reconciling, and handling of all deposit discrepancies for individual payments reported on the Deposit Ticket (DT).

  2. Examples of individual payments types are:

    1. Revenue - Collection of taxes, penalties, interest and payments on accepted Offers In Compromise (OIC). Other revenue receipts include 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 consummated sales of acquired property.

    2. Deposit Fund - Collections from OICs, payments for the sale of seized property and offers to bid or initial payments under a deferred payment sale of acquired property. Other payments may also be deposited in this account in accordance with specific instructions.

    3. General Fund - Collections of fees for duplication of documents, conscience fund, user fees and for reducing the public debt.

    4. Repayments to Refund Appropriations - Collections recovered from erroneous, duplicate, or overpaid refund disbursements; or recoveries of fraudulently endorsed refund checks.

Trace Identification Number

  1. The Trace Identification Number (TID) number is a tracking mechanism that identifies each DT and Debit Voucher (DV) with its corresponding payment and debit. The Integrated Submission and Remittance Processing (ISRP), lockbox, and Electronic Federal Tax Payment System (EFTPS) input payment systems automatically assign a TID to each DT/DV.

  2. Manual deposits must have a Form 813 (Document Register) and a TID assigned from the Batch Block Tracking System (BBTS).

  3. The TID Reconciliation Report reconciles the Custodial Detail Database (CDDB) against the RRACS general ledger accounts.

Trace Identification Number Format
  1. It is mandatory that each DT/DV has a unique TID. The 14-character TID number represents one DT/DV. The 20-character TID number includes an additional six transaction sequence numbers that identifies each DT/DV transaction uniquely.

  2. RRACS assigns System ID 20 and 25. Input payment systems assign the remaining System IDs. The valid system IDs for the functions are:

    System ID/Function
    System ID Function
    01 EFTPS
    02 ISRP Payment Transactions
    05 Lockbox Bank Transactions
    10 SITLP Levy Payments
    12 Receipt and Control Manual Deposits for External Leads
    15 Receipt & Control Manual Deposits
    20 RRACS Dishonored Check File (DCF) DV
    25 Accounting DT/DV
    35 Integrated Data Retrieval System (IDRS) Installment Agreement User Fee Sweep
    40 Automated Insolvency System (AIS)
    45 Automated Offer-in-Compromise (AOIC)
    50 Individual Taxpayer Identification Number (ITIN)
    55 Field Assistance - Taxpayer Assistance Centers (TAC)
  3. The Trace ID number format is:

    Trace ID Number Format
    Field Format Definition
    Site ID nn Campus Filing Location Code, Bank ID, or other Site ID
    System ID nn See System ID/Function chart
    Deposit Date YYYYDDD Julian Date
    Sequence Number nnn For each deposit date, begin with 001 and increment each additional deposit by one.
    Transaction Sequence Number nnnnnn This field is relevant only for the Payment Transaction Record. For each payment summarized in a DT, beginning with 000001, sequentially increment the Transaction Sequence Number for each transaction.
  4. Valid Site IDs for the Campus locations are:

    Site ID/Campus Locations
    Site ID Campus Locations
    07 Atlanta Submission Processing Campus (ATSPC)
    08 Andover Submission Processing Campus (ANSPC)
    09 Kansas City Submission Processing Campus (KCSPC)
    17 Cincinnati Submission Processing Center (CSPC)
    18 Austin Submission Processing Campus (AUSPC)
    19 Brookhaven Service Center (BSC)
    28 Philadelphia Service Center (PSC)
    29 Ogden Submission Processing Center (OSPC)
    49 Memphis Service Center (MSC)
    89 Fresno Submission Processing Center (FSPC)
  5. Valid Site IDs for the Lockbox Bank locations are:

    Site ID/Lockbox Bank Locations
    Site ID Lockbox Bank Locations
    33 US Bank - Cincinnati (FSPC)
    35 US Bank - Cincinnati (CSPC)
    36 JP Morgan Chase - Louisville (KCSPC)
    40 JP Morgan Chase - Louisville- KSCPC
    47 Bank of America Windsor - KCSPC
    68 Bank of America - Union City (FSPC)
    73 JP Morgan Chase - Charlotte (AUSPC)
    91 Bank of America - Windsor (OSPC)
  6. BBTS provides a subset of System IDs for requesting a Trace ID number for manual DTs. The subset list is:

    BBTS Subset ID/Function
    Subset ID Function
    12 Receipt and Control Manual Deposits for External Leads
    15 Receipt & Control Manual Deposits
    20 RRACS DCF DV
    25 Accounting DT/ DV
    40 Automated Insolvency System (AIS)
    45 Automated Offer-in-Compromise (AOIC)
    50 Individual Taxpayer Identification Record (ITIN)
    55 Field Assistance - Taxpayer Assistance Centers (TAC)
Trace Identification Reconciliation Procedures
  1. Background: As of January 2008, all input payment systems automatically assign a TID to each DT/DV. Manual deposits, such as insolvency payments, that require Form 813 (Document Register), are assigned a TID using the BBTS. The CDDB tracks all payments that include a DT/DV and balance the transactions against the DT/DV totals that have been entered in the RACS general ledger. The TID reconciliation is part of the Treasury scorecard.

  2. Responsibilities: The RACS unit reconciles the campus DT/DV reconciliation report (J55C01) annually for the month of March to report the balancing of transactions between CDDB and RRACS. The report format must not be altered. All TIDs must remain on this report. This report alerts the service center and NHQ of any imbalances between TIDs and any processing problems within the service center. The RACS unit only reconciles imbalances that are $100,000 or greater.

  3. Campus DT/DV Reconciliation Report (J55C01): This report lists all TIDs received on the RRACS DT/DV file for an accounting period, and lists CDDB pre-posted information and RRACS information similar to the RACS report. This report sorts by the month of the preparation date and the absolute value of the RRACS amount. The following list identifies each column on the campus DT/DV reconciliation report (J55C01):

    1. Column A (Month) indicates the month of the original transaction.

    2. Column B (Treasury Number) indicates the Treasury number.

    3. Column C (RRACS TID) indicates the 14-digit TID entered into RRACS.

    4. Column D (RRACS Date Presented) indicates the date the journal entry was entered into RRACS.

    5. Column E (IR COUNT) indicates the number of times the TID was entered into RRACS for a journal entry.

      Note:

      An asterisk or a numerical value greater than one indicates a duplicate TID was entered. The duplicate TID may be found in any month.

    6. Column F (DT/DV Amount) indicates the amount of the DT/DV in RRACS.

    7. Column G (CDDB Pre-posted) indicates the amount of the DT/DV that was captured in CDDB.

    8. Column H (Pre-posted Difference) indicates the difference in dollar amount between Column F and Column G.

    9. Column I (Error Type) indicates the TID Error Type, as identified in the legend.

    10. Column J is the field in which the manager and or lead indicates [yes or no] if the unit that caused the TID error was contacted (all units must be contacted by the 17th workday).

    11. Column K (Comments) is where the analyst or technician provides detailed comments regarding research efforts and resolution in identifying cause of TID error. Comments must be provided for each TID error.

  4. Campus Procedures:

    1. The campus DT/DV reconciliation report (J55C01) is emailed to the DBA for each individual campus by the 13th workday. The following parties are copied on the email: accounting department manager, department manager, RACS manager, team lead, and planning and analysis analyst.

    2. The campus receives a reconciliation report that identifies only the transactions that need to be researched. Only out of balance transactions with an amount of $100,000 or greater have to be reconciled.

    3. The manager or lead pulls the accounting package and any additional reports to identify the cause of the TID error.

    4. The preparer is the accounting technician or analyst at the service center campus that reviews and signs off on the J55C01 reconciliation report.

    5. The manager or lead enters the TID error code into Column I using the key below:

      Trace ID Error Codes
      ERROR TYPE DESCRIPTION ACCEPTABLE COMMENTS
      A Typo error in TID input. Input as or Should be xx-xx-xxxx-xxx-xxx, Area

      Note:

      Should include the date the typo error in TID was corrected.

      B Two days of deposit activity was entered into RRACS under one journal. Explain why
      C Trace ID is in RRACS twice, typo error on one of the DTs/DVs. No comment necessary
      D Transaction was added/deleted after deposit was submitted at end of day. Added/Deleted, explain why
      H Foreign check issues with banks (cash conversion issues) Explain why
      I Suspense transactions (for example, DCF, URF) No comment necessary

      Note:

      Must be monitored and updated until closed.

      J Transactions that did not post to CDDB (for example, NMF, DOJ Restitution, EP/EO, OIC, Photocopy Fees) Explain why
      L Other error not classified above, including external leads for Cincinnati and Fresno Accounting Only Explain why

      Note:

      Cincinnati and Fresno Only - external leads explanation should read: external lead process - Questionable returned refund from bank being sent back to IRS by the financial institution currently being researched by the Integrity and Verification Operation (IVO) - external leads former Accounts Management Taxpayer Assurance Program (AMTAP) group.

      M Void, Cancelled, or D-Applied checks Date xx-xx-xxxx / For Washed, what DT/DV number
      N Closed Cases (for example, DCF, URF) URF/DCF, Date xx-xx-xxxx
      P Duplicate payment created by the TAC office Explain why
      Z Unresolved mismatch still researching (this error code results in a non-green score) Explain why

      Note:

      The Trace ID Error Code table shown above is an across the board explanation of errors the service centers use to relay errors received when preparing the Trace ID spreadsheet.

  5. After the cause of the TID error is identified, the analyst or technician enters the detailed explanation in Column K on the spreadsheet.

  6. The manager or lead contacts the unit that caused the TID error, and verifies that actions are taken to prevent mismatch from reoccurring. Indicate in Column J only yes or no.

    Note:

    If the TID error is on cash processed in the CARE Field Assistance (FA) TACs, refer the issue to the area office analyst designated for remittances for the particular areas: FA Area 1, FA Area 2, FA Area 3, FA Area 4 and FA Area 5

    .

  7. After completion of the comments, the preparer (the accounting technician or analyst at the service center) signs the spreadsheet and there after, an initial review is performed prior to sending through the appropriate chain of command. The accounting department manager performs a final review and signs off on the documents as the certifying officer.

    1. The preparer reviews all details listed on the reconciliation report, ensuring that the supporting backup documentation agrees to the explanation, error codes are accurate, detail explanation support findings, signatures are included and that the report has been checked for completeness.

    2. The reviewer ensures that all out of balance conditions have the correct error codes which may require a review of the backup documentation; detail explanations exists; and the report has been signed by the preparer.

    3. The certifying officer is typically the accounting department manager. She/he ensures that the reconciliation report has been submitted timely to the CFO office, the report has been reviewed, and formal documentation by the preparer and reviewer via signatures exist.

  8. Original campus DT/DV reconciliation report (J55CO1), with all backup documentation remain in the campus for the required retention time stated in Document 12990, Records Control Schedules.

  9. The campus must send the completed spreadsheet and keep a copy for confirmation, sending the supporting documents for lockbox and ISRP to CFO and W&I SP HQ by the 20th workday (due date provided by CFO). The confirmation document confirms the time and date that the reconciliation report was sent and received by the CFO HQ analyst.

  10. If CFO has not received the completed spreadsheet with supporting documentation, the accounting department manager must be contacted immediately for follow-up. Campuses should retain the TID report/spreadsheet and supporting documentation with the original signatures and dates for 18 months and retire the files at 24 months to the Record Finance Center (RFC).

  11. The HQ CFO analyst selects three random sample items and requests the backup documentation for the selected items. The campuses have three workdays to send the backup documentation to the appropriate HQ CFO analyst.

Batch Block Tracking System - Online 5081

  1. Manual deposits requiring Form 813 (Document Register) are assigned TID numbers using the BBTS. BBTS produces 14-character and 20-character TID numbers for manual deposits. The 14-character TID number is either stamped or handwritten on the DT and the 20-character TID must be stamped on the individual payment.

  2. The BBTS assigns the DLN and TID number to payments and generates Form 813. An online 5081 must be submitted to request access to BBTS. Managers and employees input their own 5081. Management designates access to the functions and screens for BBTS users.

  3. Each campus BBTS coordinator is responsible for approving the online 5081s. BBTS may designate online 5081 approval to managers and/or functional coordinators.

  4. For the online 5081, the BBTS coordinator must specify the following:

    1. System ID - Function.

    2. 15 - Receipts and Control Manual Deposits

    3. 20 - RRACS DCF DV

    4. 25 - Accounting DT and DV

    5. 40 - Automated Insolvency Manual DT

    6. 45 - Automated Offer-in-Compromise

    7. 50 - Individual Taxpayer Identification Numbers (ITINs)

  5. RRACS must use BBTS to assign the TID number to a DT (System ID 25).

Custodial Detail Database

  1. The Financial Management Information System includes CDDB which tracks all individual payments reported on the DT. The individual payments are balanced against the DT totals. The accounting technician posts the DT in the RRACS general ledger account.

  2. Campuses receiving DV directly in the RRACS unit must assign a TID number through BBTS. The RRACS unit forwards the DV to the Dishonored Check File (DCF). The DCF unit enters the DV in the DCF database.

  3. The State Income Tax Levy Program (SITLP) program, Taxpayer Delinquent Account (TDA) 55, generates the TID number. The SITLP report reflects the TID number. The accounting section must stamp or write the TID on the DT.

  4. Manual deposits requiring Form 813 (Document Register) are assigned TID numbers using BBTS. The BBTS produces a 14-character and 20-character TID number for manual deposits. The 14-character TID number is either stamped or handwritten on the DT and the 20-character TID must be stamped on the individual payment.

Processing National Security Checks (Kansas City Only)

  1. Checks received from National Security are sealed in an envelope and hand delivered from National Security to the compliance services director with a memorandum and list of checks enclosed in the sealed envelope.

  2. The compliance services director contacts a Submission Processing (SP) program and analysis (P&A) analyst to pick up the sealed envelope and the corresponding memorandum.

  3. The SP P&A analyst prepares Form 3244 (Payment Posting Voucher) for each check. Each Form 3244 must have the 6400 miscellaneous revenue collection account written on it.

  4. The SP P&A analyst hand carries the checks with corresponding Form 3244 to receipt and control for deposit.

  5. Receipt and control prepares Form 2221 (Schedule of Collections) and SF 215-A DT, reflecting the DT date, agency location code (ALC), deposit total, and TAS 20X3220. The SP P&A analyst hand carries SF 215-A and Form 2221 to the accounting section for journalizing.

  6. The accounting section is responsible for:

    1. Preparing Form 8166 (Input Reconciliation Sheet) for debiting 2320 miscellaneous receipt account and crediting the 6400 miscellaneous revenue collection account.

    2. Inputting transactions in RRACS.

    3. Stamping the journal number on SF 215-A, Form 2221 and Form 3244.

  7. The SP P&A analyst is responsible for:

    1. Making copies of the checks and journalizing SF 215-A and Form 2221.

    2. Stamping or handwriting the word copy on the DT.

    3. Hand carrying the copies and the original memorandum to the compliance services director.

  8. The P&A analyst files the original Form 2221 and Form 3244(s) with copies of the checks in the 6400 account (Miscellaneous Revenue Collection) case file.

    Note:

    Forms 2221 and 3244 are forms that contain personal identification information and must be hand carried to each area. The forms must be locked in a secured cabinet.

Insolvency Payments (Ogden Only)

  1. The Philadelphia campus support function receives insolvency payments converted by Paper Check Conversion (PCC), using the Electronic Verification and Image Services (ELVIS). Daily, a campus technician scans the checks and electronically transmits them to the Federal Reserve Bank (FRB) for deposit using an Ogden's ALC.

  2. Each deposit has a unique doc ID with the following JJJ4625DDDDDDY format where:

    1. JJJ are the fields used for inputting the Julian date.

    2. 4625 represents the insolvency account.

    3. DDDDDD are the fields used for inputting the DT numbers.

    4. Y is the field used for inputting the list year.

  3. The next business day, a campus technician faxes Form 784 (Recapitulation of Remittances) to Ogden (note the doc ID number), after the technician electronically transmits the insolvency payments.

  4. For processing a DT, an Ogden insolvency technician:

    1. Daily, accesses ELVIS and retrieves the source documents (DT) associated with the payments input by Philadelphia.

    2. Prints two copies of the DT and all checks related to that deposit.

  5. For processing each DT, an Ogden accounting technician:

    1. Journalizes the DT to RRACS using window 210. Debits insolvency unclassified account 7009 and credits insolvency suspense account 4625.

    2. Writes or stamps the journal number on the DT and on the supporting documentation.

    3. Places the original DT in the bin for the collection information repository (CIR) technician.

  6. For processing a DV, the Ogden accounting technician:

    1. Prints two copies of the DV.

    2. Retrieves a copy of the dishonored check using CIRA (Central Image Research Archive) feature on ELVIS and queries the unique ID from the DV.

    3. Journalizes the DV to RRACS using Windows 220. Debits dishonored checks account 1710 and credits withholding revenue receipts account 2110.

    4. Faxes a copy of the DV, detail report, and dishonored check to the CIO at the Philadelphia campus.

  7. Daily, the Area Office Remittance Register (AORR) generates Form 3244 (Payment Posting Voucher) information using command code PAYMT. The DT total amounts, AORR, and checks should agree. The AORR money amounts must equal the DT totals.

  8. Since the AORR EOD 1640 contains more than one doc ID, each doc ID money amount must be notated.

  9. Philadelphia campus is responsible for:

    1. Faxing Form 3210 (Document Transmittal) with all check(s) input using command code PAYMT. The doc ID is listed on both forms for the technician to balance.

    2. Debiting Insolvency Suspense account 4625 for the money on the AORR using Windows 498.

    3. Crediting the SC suspense for Master File (MF) - Business Master File (BMF) account 4120 and/or the SC suspense for MF - Individual Master File (IMF) account 4220 found on EOD16 run, page 6. The NMF items are transferred to Cincinnati.

    4. Using the same journal window (498) for reclassification purposes, debit the appropriate tax class and credit the insolvency unclassified 7009 account.

  10. The accounting technician:

    1. Uses the 498 Recovery Insolvency window for debiting insolvency suspense account 4625 and crediting the SC suspense for MF - BMF account 4120 and/or the IMF account 4220.

    2. Reclassifies as needed, using Insolvency Unclassified account 7009 and the appropriate tax class.

    3. Transfers all NMF transactions to the Cincinnati campus using Form 2158 (Credit Transfer Voucher).

    4. Writes or stamps the journal number on the AORR, after posting the journal entry into RRACS.

    5. Sends the original AORR to data control and a copy of the AORR to the insolvency technician.

    6. Maintains the AORR in the insolvency case file in the accounting section.

  11. The accounting technician is responsible for maintaining the suspense account daily by:

    1. Using the supporting backup for inputting the DT and verifying check information on the excel insolvency suspense spreadsheet.

    2. Inputting the Julian date, DT number and DT date.

    3. Listing each check separately, limit of seven, under the deposits column on the excel spreadsheet.

    4. Inputting the journal information from the DT.

    5. Filing the DT by date in the case file folder.

    6. Noting closed on the insolvency suspense spreadsheet after all checks post to AORR.

    7. Following up with campus support, if any insolvency suspense cases remain open after five days.

  12. Each Friday, the RACS DBA generates the insolvency suspense report (RACS 0139) and balances it to the insolvency suspense spreadsheet. Every Monday morning, the RACS DBA emails the insolvency suspense spreadsheet to the campus support team manager.

  13. Monthly, the accounting technician completes a reconciliation sheet for the insolvency suspense account 4625. Only open case files are reflected on the reconciliation sheet.

    Note:

    The net total for insolvency suspense account 4625 must always be a credit or zero balance.

  14. The accounting technician takes the net totals from the monthly reconciliation sheet plus the net totals from the monthly trial balance insolvency suspense account 4625 to determine if the balance nets to zero.

  15. If the monthly reconciliation report is out of balance, the accounting technician:

    1. Checks the insolvency suspense report (RACS report 0139) for any 210 journals that do not have a case file number or a 498 journal not used to close out a transaction.

    2. Checks the insolvency suspense spreadsheet transaction against the RACS report to ensure they match.

  16. After balancing the monthly reconciliation sheet, management reviews, approves, initials and dates the monthly reconciliation sheet.

  17. The accounting technician completes Form 3997, Reconciliation of general ledger account report, and forwards the report to SP HQ. The reconciliation sheet and the supporting documentation is maintained in a closed file for the accounting period.

Foreign Bank Account Records Payments (TAS 203220) (Cincinnati Only)

  1. Foreign Bank Account Records (FBAR) payments are considered miscellaneous receipts that are not reflected on the taxpayer's account.

  2. ECC-MTB:

    1. Deposits the payments by Paper Check Conversion (PCC) using Electronic Verification and Image Services (ELVIS).

    2. Scans the checks daily and electronically transmits them to the FRB for deposit using Cincinnati's ALC.

    3. Prepares a manual refund for taxpayers overpayments.

  3. The accounting technician:

    1. Posts the overpayment as a miscellaneous refund (window 501), and debits miscellaneous revenue collection account 6400 and credits approved vouchers payable, principle account 4801.

    2. Records payment amount in TAS 203220.

    3. Writes or stamps the journal number on the refund document.

Offer-in-Compromise Payments (Brookhaven, Cincinnati, Memphis, and Ogden Only)

  1. Offer-in-Compromise (OIC) payments received in Brookhaven and Memphis are deposited by PCC using ELVIS.

  2. Daily, the Brookhaven and Memphis Perfection/OIC teams fax the PCC Deposit Breakdown Sheet and the Remittance Tracking Report (Form 13479), for the current day’s deposit to the Cincinnati RRACS. The PCC/OIC package, including the batch listings, Form 13479, and the original Form 2515 (Record of Offer-in-Compromise) must be sent by overnight traceable mail to:
    Internal Revenue Service
    201 W Rivercenter Blvd.
    Stop 21, RRACS Team 101
    Covington, Kentucky 41011

  3. Daily, the Cincinnati RRACS accounting technician must access ELVIS and retrieve all electronic DT/DVs for Brookhaven and Memphis OIC payments.

  4. For processing a DT, the Cincinnati accounting technician:

    1. Prints a copy of the DT and downloads the DT report to a file.

    2. Balances the PCC/OIC package to the DT.

    3. Journalizes the DT to RRACS.

    4. Prepares the Credit Transfer Voucher (Form 2158) to transfer the Brookhaven or Memphis credit from account 4620 (unidentified remittances) to Ogden for MF processing.

  5. For processing a Debit Voucher (DV), the Cincinnati accounting technician:

    1. Prints a copy of the DV and downloads the DV report to a file.

    2. Retrieves a copy of the dishonored check and using the CIRA (Central Image Research Archive) feature on ELVIS, queries the 21-digit unique transaction ID from the DV.

    3. Journalizes the DV to RRACS.

Accounting Packages

  1. The accounting package consists of several deposit documents for journalizing into RRACS.

  2. All accounting packages received in RRACS must be journalized within two business days.

    Note:

    Do not wait for the confirmed DT before journalizing.

  3. Accounting packages that include losses or shortages must have proper documentation.

  4. A DT and the IDRS recap information must be cross-referenced with the journal number for audit trail purposes.

Integrated Data Retrieval System Accounting Package
  1. The Integrated Data Retrieval System (IDRS) accounting package contains the following documents:

    1. SF 215-A (DT)

    2. IDRS Remittance Register

    3. IDRS Recap (AORR, EOD 16)

  2. The accounting technician:

    1. Inputs the SF 215-A into RRACS

    2. Posts the correct amount in the proper tax class field using window 210

    3. Cross-references the DT and the IDRS Recap with the journal number

    Note:

    Do not wait for the confirmed DT before journalizing.

Manual Accounting Package
  1. The manual accounting package contains the following documents:

    1. SF 215-A (DT)

    2. Form 813 (Document Register) - a duplicate for MF and original or third copy for NMF

    3. Form 813-A (Recap of Document Registers)

    4. Form 3460 (Transmittal Form)

    5. NMF Subsequent Payments with duplicate Form 813

  2. The accounting technician:

    1. Date stamps the DT/DVs when they are received in the accounting section.

    2. Checks the SF 215-A for missing amounts. When an amount is missing, the accounting section is authorized to make a pen and ink change to the SF 215-A and write the missing amount to tax class 2.

    3. Inputs the SF 215-A into RRACS.

    4. Posts the correct amount in the proper tax class field using window 210.

    5. Reclassifies the pen and ink amount in tax class 2 to the correct tax class (the total amount and the date on the DT/DV always remains the same).

    6. Cross-references the DTs and the IDRS Recap with the journal number.

    Note:

    Do not wait for the confirmed DT before journalizing.

  3. EXCEPTION: For weekend processing occurring during peak season, the deposits are made on the next business day. Ensure the DT reflects the current date, banks do not accept a DT with a previous day's date.

Electronic Fund Transfer Accounting Package
  1. The Electronic Fund Transfer (EFT) accounting package contains the following documents:

    1. SF 215-C (DT)

    2. Supporting documentation

  2. The accounting technician:

    1. Inputs the SF 215-C into RRACS with total amounts and tax class information.

    2. Determines the tax class amount by the EFT message on the Treasury Financial Communication System support listing.

    3. Cross-references the SF 215-C and supporting documentation with the journal number.

    Note:

    Do not wait for the confirmed DT before journalizing.

Lockbox Accounting Package
  1. The lockbox electronically transmits files. The file generates the batch journal 180 and the batch journal posts to RRACS.

  2. The accounting technician:

    1. Verifies the batch journal 180 to the SF 215-A.

    2. Writes or stamps the batch journal number on the SF 215-A and supporting documentation.

    3. Corrects errors if needed by putting a line through the incorrect journal number, inserting your initials, dating the document, and writing or stamp the correct 180 batch journal number on the DT.

    4. Submits a Knowledge Incident/Problem Service Asset Management (KISAM) ticket to: BU-CFO-RFM-RA-RS & A, for any discrepancies.

    5. Journalizes a manual entry for batch journals that fails to post to RRACS, and submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers to investigate the cause.

  3. RRACS produces the Lockbox Error Report (151) if there is a problem with the lockbox batch journal.

Integrated Submission and Remittance Processing (ISRP) Accounting Package
  1. The ISRP accounting package contains the following documents:

    1. SF 215-A (DT)

    2. IMF and BMF Service Center Control File (SCCF) listings

    3. ISRP remittance register

    4. ISRP general ledger account number list for each DT

  2. ISRP:

    1. Transmits a file to RRACS.

    2. Generates a batch journal window 170.

    3. Posts transaction to RRACS.

  3. The accounting technician:

    1. Verifies the batch journal 170 to the SF 215-A and supporting documentation.

    2. Writes or stamps the batch journal number on the SF 215-A and on the supporting documentation.

    3. Corrects errors by putting a line through the incorrect journal number, inserting his/her initials, dating the document, and writing or stamp the correct 170 batch journal number on the DT.

    4. Submits a Knowledge Incident/Problem Service Asset Management (KISAM) ticket to: BU-CFO-RFM-RA-RS & A, for any discrepancies.

    5. Journalizes a manual entry for batch journals that fails to post to RRACS, and submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers to investigate the cause.

  4. RRACS produces the ISRP Error Report (150) when a problem arises with the ISRP batch journal.

Electronic Federal Tax Payment System (EFTPS) Accounting Package (Ogden Only)
  1. The EFTPS accounting package contains the following documents:

    1. SF 215-A (DT)

    2. Tax Class Summary Report

    3. EFTPS Electronic Reject/Offset Report

  2. EFTPS transmits a file to RRACS. RRACS generates batch journal windows 110, 111, 112, 113, 114 and posts to RRACS.

  3. The accounting technician:

    1. Verifies the SF 215-A and supporting documentation against the EFTPS batch journals.

    2. Writes or stamps the batch journal number on the SF 215-A and supporting documentation.

    3. Corrects errors by putting a line through the incorrect journal number, inserting his/her initials, dating the document, and writing or stamp the correct EFTPS batch journal number on the DT.

    4. Submits a Knowledge Incident/Problem Service Asset Management (KISAM) ticket to: BU-CFO-RFM-RA-RS & A, for any discrepancies.

    5. Journalizes a manual entry for batch journals that fails to post to RRACS, and submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers to investigate the cause.

  4. RRACS produces the EFTPS Error Report when a problem arises with the EFTPS batch journal.

Miscellaneous Accounting Package
  1. The miscellaneous accounting package contains the following documents:

    1. SF 215-A (DT)

    2. Form 1963 (Collection Register)

    3. Form 656 (Officer-In-Compromise Application Fee)

    4. Form 2433, Part 8A (Notice of Seizure)

    5. Form 4506 (Request for Copy of Tax Return)

    6. Form 3245 (Posting Voucher-Refund Cancellation or Repayment), attached to Form 813 (Document Register)

    7. Form 2221 (Schedule of Collections)

  2. The accounting technician:

    1. Date stamps the DT/DVs when they are received in the accounting section.

    2. Checks the SF 215-A for missing amounts. For amounts missing, the accounting section authorizes pen and ink changes to the SF 215-A and writes the missing amount to tax class 2.

    3. Inputs the SF 215-A into RRACS.

    4. Uses window 210, posts the correct amount in the proper tax class field.

    5. Reclassifies the pen and ink amount in tax class 2 to the correct tax class. The total amount and the date on the DT/DV always remain the same.

    6. Cross-references the DTs and the IDRS recap with the journal number.

    Note:

    Do not wait for the confirmed DT before journalizing.

Deposit Discrepancies

  1. For DT errors, the financial institution sends a SF 215-A to the campus. Types of deposit discrepancies are:

    1. Discrepancies between IRS and the financial institution receiving the deposit

    2. Discrepancies a taxpayer identified

    3. Discrepancies with cash courier deposits and the financial institution

  2. The DT is offset with a SF 5515 (Debit Voucher/DV). If the check is returned by the financial institution as non-negotiable, the campus receives a SF 5515 to debit the taxpayer account and credit 1710 account (Dishonored Check).

  3. The DT may be applied to the taxpayer's account or, if the amount is less than one year old, it may be journalized to Unidentified Remittance File (URF). If the credit amount is one year or more and/or the amounts are numbered with Doc code 48 or 58, they are journalized to an excess collection file (XSF). Supporting documentation is required.

  4. The accounting technician:

    1. Date stamps the DV when it is received in the accounting section.

    2. Inputs the SF 5515 into RRACS.

    3. Posts the correct amount using window 220.

    4. Stamps the journal number on the DV and supporting documentation.

    5. Forwards a copy of SF 5515 and supporting documentation to the Dishonored Check Unit.

  5. When the Dishonored Check technician fails to resolve the error after 90 days, Custodial Accounting journalizes the SF 5515 and supporting documentation upon receipt of the document. The accounting technician:

    1. Journalizes the transaction using window 308 and debits account 7650 (Loss Deposit Discrepancies).

    2. Posts the correct amount for debit 7649/7650 and credit 1710/1720/4120/4220/4420/6570/6800 or account 6900 (Adjustments or Corrections).

    3. Stamps the journal number on the DV and supporting documentation.

    4. Reclassifies the amount from tax class 1 to the correct tax class.

  6. For additional information, see IRM 3.0.167, Losses and Shortages.

Scorecard

  1. The CFO uses a monthly quality scorecard to establish controls and checks to:

    1. Track timely submission of reports.

    2. Verify data accuracy.

    3. Verify supporting documentation.

  2. The campus reports submitted monthly are rated using the following criteria:

    • Green - Submitted timely to all contacts; all supporting documentation is attached.

    • Yellow - Submitted timely to all contacts; some supporting documentation is missing.

    • Red - Not submitted timely to all contacts; all supporting documentation is missing.

    Note:

    A Green rating, for all monthly submissions, is the goal.

  3. CFO scorecard rates the following monthly reports:

    1. End of month balancing for CARS

    2. Supplemental CARS submission

    3. Statement of Difference (SOD) summary report and deposit/disbursement reconciliation report

    4. Form 3997, reconciliation of subsidiary accounts

    5. TID reconciliation report

    6. Suspense Account - 20F3885 (DMF Offset)

    7. Suspense Account - 20F3500 (Suspense) and 20F3502 (Suspense)

    8. Suspense Account 20F3820.29 (Ogden only)

    9. Informant Reward Account 20X5433 (Ogden only)

End of Month Balancing for Treasury Submission
  1. The campuses submit end of month (EOM) balancing and notify HQ CFO by 11:00 a.m. local time on the second business day. HQ CFO reviews the submission for Timeliness using the following criteria:

    • Green - EOM balancing complete and email notification sent to HQ CFO by 11:00 a.m. local time on the second business day.

    • Yellow - EOM balancing complete and email notification sent to HQ CFO from 11:01 a.m. to 1:00 p.m. local time on the second business day.

    • Red - EOM balancing complete and email notification sent to HQ CFO after 1:00 p.m. local time on the second business day.

  2. The HQ CFO reviews the submission for Completeness using the following criteria:

    • Green - All RACS transactions reported.

    • Yellow - Partial RACS transactions reported.

    • Red - No RACS transactions reported.

  3. The HQ CFO reviews the submission for Accuracy using the following criteria:

    • Green - All RACS transactions accurate.

    • Yellow - Partial RACS transactions accurate.

    • Red - No RACS transactions accurate.

Treasury Supplemental Submission
  1. The campuses manually submit the supplemental submission to Treasury by the third business day to clear out any remaining out-of-balances between Treasury accounts. The HQ CFO reviews the submission for Timeliness using the following criteria:

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

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

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

  2. The HQ CFO reviews the submission for Completeness using the following criteria:

    • Green - All transactions completed.

    • Yellow - Partial transaction completed.

    • Red - No transactions or journals completed.

    Note:

    After all supplementals are complete, service centers must check account balances to ensure correct adjustments are made and to verify that the suspense accounts 20F3500 and 20F3502 contain zero balances and accounts 20F3885 meet threshold requirements. Failure to meet suspense account requirements constitutes a Treasury scorecard issue.

Statement of Difference Summary Report and Deposit/Disbursement Reconciliation Report
  1. The SPCs submit a Statement of Difference (SOD) summary report and a deposit/disbursement reconciliation report. The SOD summary lists all deposit and disbursement discrepancies summary totals from each Submission Processing Center by ALC. Any deposit or disbursement discrepancies found on this report must be reported on the deposit and disbursement reconciliation report. The DBA reconciles the balances on the report and sends the reports to HQ CFO three workdays after 119 journal posts to RACS each month.

  2. The HQ CFO analyst reviews the reconciliation report for Timeliness using the following criteria:

    • Green - Reconciliation complete in three workdays after the 119 journal posts to RACS.

    • Yellow - Reconciliation complete in four or five workdays after the 119 journal posts to RACS.

    • Red - Reconciliation complete in six or more workdays after the 119 journal posts to RACS.

  3. The HQ CFO reviews the report for Completeness using the following criteria:

    • Green - All information is provided and accurate.

    • Yellow - Missing details or errors on five or less items.

    • Red - More than five items are missing information or have errors.

  4. Backup documentation is required for deposit items that are three months or older and all items in disbursements. The HQ CFO reviews the reconciliation report for Supporting Documentation using the following criteria:

    • Green - Provides supporting backup documentation for the required deposits that are three audit months or older, and for all disbursement items.

    • Yellow - Supporting documentation missing one to two items.

    • Red - Supporting documentation missing more than two items.

  5. The HQ CFO reviews the reconciliation report for reconciliation of Aged Items using the following criteria:

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

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

    • Red - Contains confirm date greater than five months.

Form 3997, Reconciliation of Subsidiary Accounts Report
  1. The accounting section prepares Form 3997, Reconciliation of Subsidiary Accounts Report, and emails it to headquarters (HQ) Submission Processing (SP).

  2. The HQ SP reviews the Form 3997 report for Timeliness using the following criteria:

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

    • Yellow - Receives the report on the 26th or the 27th of the month.

    • Red - Receives the report on or after the 28th of the month.

  3. The HQ SP reviews the Form 3997 report for Completeness and Accuracy using the following criteria:

    • Green - Provides information for all columns.

    • Yellow - Missing information on five or less columns.

    • Red - Missing information on more than five columns.

  4. The HQ SP reviews the Form 3997 report for Supporting Documentation using the following criteria:

    • Green - Provided supporting documentation for all aged reconciled and unreconciled items.

    • Yellow - Missing supporting documentation for one aged reconciled and unreconciled item.

    • Red - Missing supporting documentation for more than one aged reconciled and unreconciled item.

  5. The HQ SP reviews the Form 3997 report for required Signatures using the following criteria:

    • Green - The report contains the required signatures.

    • Yellow - The report does not contain all required signatures.

    • Red - The report does not contain any of the required signatures.

  6. The HQ SP reviews the Form 3997 report for Aged Reconciled Items using the following criteria:

    • 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.

  7. The HQ SP reviews the Form 3997 report for Unreconciled Items using the following criteria:

    • Green - No unreconciled items or an unreconciled items reported for the first time.

    • Yellow - One or more unreconciled items reported for the second or third consecutive time.

    • Red - One or more unreconciled items reported for four or more consecutive times.

  8. The HQ SP reviews the Form 3997 report to verify it reconciles to RACS and the MCC Reciprocal Accounting Control Record (RACR) using the following criteria:

    • Green - The report balances to RACS and RACR items.

    • Yellow - The report is not available.

    • Red - The report does not balance to RACS and RACR items.

  9. For additional information, see IRM 3.17.64.29 , Scorecard, which provides further scorecard requirements.

Trace Identification Reconciliation Report
  1. The accounting section prepares the Trace ID (TID) reconciliation report and sends it to HQ CFO.

  2. The HQ CFO reviews the TID report for timeliness using the following criteria:

    • Green - Report received on the 20th workday of the month.

    • Yellow - Report received one workday after the 20th workday of the month.

    • Red - Report received two workdays after the 20th workday of the month.

  3. The HQ CFO reviews the TID report for completeness using the following criteria:

    • Green - Information is provided for all columns.

    • Yellow - Information is missing on five or less columns.

    • Red - Information is missing on more than five columns.

  4. The HQ CFO reviews the TID report to verify all items are reconciled using the following criteria:

    • Green - All columns have detail information.

    • Yellow - Error type Z is listed on five or less items.

    • Red - Error type Z is listed on more than five items.

  5. The HQ CFO reviews the TID report to verify the manager was contacted using the following criteria:

    • Green - Managers have been contacted.

    • Red - Managers have not been contacted.

  6. The HQ CFO reviews the TID report for required signatures using the following criteria:

    • Green - The required signatures are noted.

    • Yellow - No signatures are noted.

    • Red - The required signatures are not noted.

CFO Scorecard - Suspense Account 20F3885
  1. Each service center monitors the suspense account 20F3885 monthly to ensure the accounts are cleared within the 0 to 60 day status. An outstanding suspense log is used to show any transactions over two weeks old without a closing journal and transactions that have not been cleared within the 60 day period through the IPAC process.

  2. A suspense account percentage worksheet is used to calculate the five percent or less of net disbursements in order to maintain a green scorecard. Use the RACS 020 (SF224 Statement of Transactions) report (Net Disbursement column) and the Treasury ALC activity account balance for each service center to complete the worksheet.

    HQ CFO reviews the suspense account worksheet for timeliness using the following criteria:

  3. Suspense account 20F3885 - Timeliness:

    • Green - IPAC log sheet for suspense account 20F3885 is received by 1:00 p.m. local time on the third business day of the following month.

    • Red - IPAC log Sheet for suspense account 20F3885 is received after 1:00 p.m. local time on the third business day of the following month.

  4. Suspense Account 20F3885 - IPAC - Aged Items:

    • Green - 30 days or less in suspense.

    • Yellow - 31 to 45 days in suspense. Accounting department manager is contacted.

    • Red - 46 to 60 days in suspense. Campus director is contacted.

    Note:

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

  5. Suspense Account 20F3885 - Supporting Documentation:

    • Green - Corrective action log is received to support items over 45 days old on the IPAC log sheet.

    • Red - Corrective action log is not received to support items over 45 days old on the IPAC log sheet.

  6. Suspense Account 20F3885 - Efficiency: The service center must use the Suspense Account Percentage Worksheet to include 20F3885.11 Treasury account balance to obtain the percentage of suspense dollars.

    • Green - five percent or less

    • Yellow - six to nine percent

    • Red - ten percent

  7. Suspense Account 20F3885 - Signature:

    • Green - All signatures are on the IPAC log sheet and corrective action log sheet.

    • Red - Missing signature(s) on either the IPAC log sheet or the corrective action log sheet.

CFO Scorecard - Suspense Account 20F3500 and 20F3502
  1. Suspense Account 20F3500 and 20F3502 - Timeliness:

    • Green - Submitted by 1:00 p.m. local time on the third business day of the month.

    • Red - Submitted anytime after 1:00 p.m. local time on the third business day of the month.

  2. Suspense Account 20F3500 and 20F3502 - Efficiency:

    • Green - Zero amount within current month.

    • Red - One cent or more within current month.

  3. Suspense Account 20F3500 and 20F3502 - Supporting Documentation:

    • Green - Supporting documentation received.

    • Red - Missing supporting documentation.

  4. Suspense Account 20F3500 and 20F3502 - Signature:

    • Green - Suspense 20F3500 and 20F3502 spreadsheet is signed by the RACS manager.

    • Red - Suspense 20F3500 and 20F3502 spreadsheet is not signed by the RACS manager.

Scorecard - Suspense Account 20F3820.29
  1. Suspense Account 20F3820.29 - Timeliness:

    • Green - Submitted by 11:00 a.m. local time on the second business day of the month.

    • Red - Submitted anytime after 11:00 a.m. local time on the second business day of the month.

  2. Suspense Account 20F3820.29 - Efficiency - RRACS 003 Report with Account 7001 and 7009 added together:

    • Green - $75M or less

    • Red - More than $75M

  3. Suspense Account 20F3820.29 - Efficiency - RRACS 004 Report with Account 7001 and 7009 added together:

    • Green - $120M or less

    • Red - More than $120M

  4. Suspense Account 20F3820.29 - Signature:

    • Green - Suspense account 20F3820.29 spreadsheet is signed by the RACS manager.

    • Red - Suspense account 20F3820.29 spreadsheet is not signed by the RACS manager.

Informant Reward Account (Ogden Only)
  1. The Ogden SPC generates a CARS account statement for account 20X5433 each month, after all reclassifications have been completed on the third business day, to ensure a positive balance exists in the account. This statement must be signed by a RACS manager and sent to HQ CFO at: &CFO:FM:CFM CA Custodial Systems and Analysis, and to the HQ SP analyst for your campus, WI.SP.RRACS@irs.gov.

  2. The HQ CFO analyst reviews the Informant Reward Account (20X5433) statement report for timeliness using the following criteria:

    • Green – Informant reward balance is received by 1:00 p.m. local time on the third business day of the following month.

    • Red - Informant reward balance is not received by 1:00 p.m. local time on the third business day of the following month.

  3. The HQ CFO analyst reviews the 20X5433 report for effectiveness using the following criteria:

    • Green - CARS balance of Informant Reward Account is a positive or zero amount.

    • Red - CARS balance of Informant Reward Account is a negative amount.

  4. The HQ CFO analyst reviews the 20X5433 report for signature using the following criteria:

    • Green - CARS balance of Informant Reward Account statement is signed by the RACS manager.

    • Red - CARS balance of Informant Reward Account statement is not signed by the RACS manager.

Sale of Securities

  1. Fiscal Service handles the security liquidation program. Fiscal Service pays IRS electronically when the sale of these securities occurs.

  2. The payments are made through a broker (third party contract with Fiscal Service) using FEDWIRE.

  3. A special format was designed to identify these specific payments to the RACS technicians. Contact names are included in the message format to identify the case holder and expedite the processing of the funds.

  4. Payments received for this program are considered deposit fund receipts.

  5. The ALC determines which campus maintains case files. It also provides the location for final payment transmission.

  6. The field office, special procedure, closely monitors these payments and case files. After receiving payment, the technician matches case file information with payments received. The technician makes a notation in Collections Information Repository (CIR), under the screen entitled FEDWIRE payments.

  7. Fiscal Service is responsible for notifying the field office after sending payment via FEDWIRE. The accounting technician checks the CIR and FEDWIRE payments weekly for payment transmissions.

Over the Counter Network (OTCnet)

  1. Over the Counter Network (OTCnet) is a Treasury secure web-based application that:

    1. Automates the deposit reporting process.

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

    3. Provides the ability to confirm DTs electronically.

Manual Confirmed Deposits Processing Procedures)

  1. Financial institutions are not responsible for confirming deposits made using OTCnet.

  2. The technician is responsible for manually posting confirmation to RRACS, using the 211 window, within two business days if CIR fails to post the confirmation journal. The technician must confirm the DT on the same business day during the last week of the month. The Treasury identification number and the amount must match the DT number and the DT file. If the Treasury identification number was posted incorrectly to RRACS, the DBA must correct it.

  3. The technician is responsible for contacting the financial institution to initiate a deposit trace, if the SF 215-A DT confirmed copy is not received within two weeks of the DT date. The technician makes a second contact no later than five workdays after the initial contact if confirmation is not received.

    Note:

    Foreign remittance deposits normally take five workdays for confirmation.

Accessing OTCnet
  1. The Custodial Accounting section identifies the technician as an OTCnet user and the local security administrator (LSA) creates a profile for the user. All OTCnet users must complete the online training course provided on the Fiscal Service OTCnet website prior to OTCnet access.

  2. After completing the training course, the user must complete the OTCnet User Authorization Form and sign OTCnet Rules of Behavior. The employee's manager submits the OTCnet user authorization form and training certification to the LSA.

  3. After OTCnet permission is assigned, three emails are sent to the employee in the following order:

    1. The first provides the user ID.

    2. The second provides a temporary password.

    3. The third provides the OTCnet permission.

  4. After receiving the user ID and password, the user logs on to the Treasury user profile to change the temporary password and provide answers to the secondary authentication questions.

Automated Deposit Records Confirmation

  1. IRS accesses deposit information through the Collections Information Repository (CIR) to:

    1. Verify deposits, FEDWIRE transfers and DT/DV adjustments.

    2. Resolve Report 1137, CIR Error Report, open items.

    3. Research financial institution discrepancies.

    4. Reconcile Statement of Difference.

    5. Access Electronic File Transfer deposits.

  2. CIR is available Monday through Friday, from 6:00 a.m. until 8:00 p.m. EST. CIR retains deposit information for one year and retains FEDWIRE information for the current and the prior month.

  3. Daily, the accounting technician is responsible for downloading and printing deposit record data DT/DV through CIR and RRACS.

  4. Daily, CIR uses the deposit record data to generate the following reports:

    1. Report 1134, Matched CIR Records

    2. Report 1135, CIR Recirculating Records

    3. Report 1136, Unmatched RACS CIR Records

    4. Report 1137, CIR Error Report

    Note:

    The accounting technician is responsible for printing these reports daily.

  5. Report 1134 lists matched records reported by the financial institution and campus. The confirmation journal number is on the report. The accounting technician stamps the journal number on the confirmed DT copy. Further research is necessary.

  6. Report 1135 lists DTs and DVs reported by the financial institution to Fiscal Service. The Treasury number with an asterisk next to it is an indication the document posted to RRACS on the report date.

  7. Report 1136 lists DTs and DVs journalized by the campus. The Treasury number with an asterisk next to it is an indication the document posted to RRACS on the report date. The DBA must obtain management's approval before inputting a modification (902 window) to correct incorrect DT/DV journalizations.

  8. Report 1137, CIR Error Report identifies the following error codes:

    1. Error Code A -100 percent duplicate deposit

    2. Error Code B - deposit confirmed date is missing

    3. Error Code C - prep date cannot be later than the confirmed date

    4. Error Code D - invalid form code

  9. Report 1137 listing DTs, must be confirmed manually. They do not appear on Report 1135, CIR recirculating records. Daily, the accounting technician must research and resolve errors on Report 1137.

    Note:

    Errors appearing on Report 1137 do not appear on the next day's error report.

  10. Weekly, the technician researches discrepancies or unconfirmed deposits not resolved within five business days of the report date. The reports are as follows:

    1. Report 1135, CIR Recirculating Records

    2. Report 1136, Unmatched RACS CIR Records

    3. Report 1137, CIR Error Report

    Note:

    Adjustment DT/DV has the original deposit prepared date and appears on the reports as an aged date. The accounting technician uses the RRACS received date for adjusting any DT/DV to determine the first contact date for research and follow-up. The date of first contact must occur within nine calendar days, including foreign currency deposits. If there is a Treasury number with an asterisk next to it, it is an indication the document posted to RACS on the report date. Further research is necessary.

  11. For any unresolved DT/DV, after the initial contact, the technician makes a second contact and notifies the RACS manager. A comprehensive history sheet must be completed for this contact with the following information:

    1. Action(s) taken

    2. Date of action

    3. Name of contact

    4. Descriptive information for action taken

  12. For any DT/DV that is unresolved for more than five business days after the second contact, the technician makes a third contact to the RACS manager for possible escalation to the accounting operation manager while continuing to make efforts to resolve the issues.

  13. Weekly, the manager and/or designee must review, initial and date the CIR reports to ensure prompt discrepancy resolution.

  14. Daily, during the final week of monthly processing, the technician researches discrepancies and/or unconfirmed deposits not appearing on the CIR reports.

Tax Class Classification

  1. Revenue collected during a current fiscal year is controlled and reported on a DT/DV by the TAS tax class.

  2. For IRS reporting, the fiscal year runs from October 1 through September 30.

  3. The DT or related support listings show the classification when the deposit is submitted initially to a financial institution. DVs returned from the financial institution for invalid or dishonored remittances are classified initially as tax class 1 (withholding tax) and subsequently reclassified after determining the proper tax classification.

Tax Class Reclassification
  1. When misclassification errors are identified, the tax class must be reclassified in RRACS as soon as possible. Examples of misclassification are documents input with the wrong tax class or typographical errors on DTs. For reclassification, the accounting technician is responsible for:

    1. Transferring a credit between IMF, BMF, and/or NMF accounts by offsetting debits between modules.

    2. Posting a reclassification journal for adjustments to RRACS. All funds reclassified in RRACS must be in the current fiscal year.

    3. Reclassifying child support payments for improper classification. At month end, the technician uses the amounts on Form 5461, Report of Action under PL 93-647.

    4. Photocopying fees deposited and credited to account 2340 (Photocopy Fee). The financial institution sends the RACS unit the SF 5515 (Debit Voucher) and a copy of the taxpayer's dishonored check. The technician reverses the credit in account 2340 and debits the 1710 account. The 1710 account is an receivable account used to record and control dishonored checks or money orders, previously recorded as collections for the IRS.

Tax Class Reclassification of Non-Revenue Receipts
  1. Erroneous refund and deposit repayments are reclassified to a tax class related to TAS. Prior year revenue receipts are not reclassified.

Fund Adjustments Reclassifications
  1. Transferring receipts between funds, or within the same fund, requires reclassification. The following transactions must be reclassified:

    1. Revenue receipts transferred from one tax class to another (source documents are Form 2424 (Account Adjustment Voucher), Form 813 (Document Register), and IDRS recap, Page 4).

    2. DTs with incorrect credit classifications (source documents are SF 215-A (DT), Form 813, and IDRS recap, Page 3).

    3. Dishonored check file (DCF) applications (source documents are DCF03, DCF05, and EOD16, Page 6).

    4. Renumbered rejects and nullified unpostables transferred from one tax class to another.

    5. Refund repayments deposited as revenue receipts.

    6. Child support payments.

    7. Service Center Control File (SCCF) adjustments involving a tax class change (source documents are Form 4028; SCCF-11-41, Adjustment Control Record List Items with Control Record Source Code J; and SCCF-11-47, Control Record Renumber Reclassification Summary).

    8. Reclassifications of corrected unpostables generated by ECC-MT (source document is the Control Data Run 02 Project 160).

    9. Budget clearing accounts, refund repayments or revenue receipts adjustments.

    10. Anti-drug special funds.

  2. The technician journalizes entries using source documents from a prior window, or using Form 8166 (Input Reconciliation Sheet). When entries are subsequent to journal input on another window, the prior window journal number is used as the doc ID number for that window. For a journal number not used for the doc ID, the technician inputs the journal number in the message and in so doing, establishes an audit trail. The message column summarizes the adjustments made to fund receipt accounts.

  3. The technician inserts the original journal number as the doc ID number when the reclassification journal corrects a prior journal entry. Before posting journal entries, the technician inputs detail information (reason) for the reclassification in the message column. The DT classification report summarizes all adjustments to a tax class related to TAS.

  4. The accounting technician transcribes or stamps the reclassification journal number on the supporting documentation.

Civil Judgment Collections (Kansas City Only)

  1. Report 1136 (Unmatched RACS CIR Records), lists DTs and DVs journalized by the campus but not reported by the depository.

  2. The Department of Justice (DOJ) receives civil judgement payments and uses the Intragovernment Payment and Collection (IPAC) system to transfer these payments to Kansas City (ALC 20090900) and create documentation of the transfer. For additional information, see IRM 3.17.243, Miscellaneous Accounting.

  3. An excel worksheet and other documents provide the debtor's name, SSN, interest computation date, cause of the action, collection office claim number, dollar amount, and collection office referral number, included on the IPAC document.

  4. The accounting technician is responsible for:

    1. Reconciling the supporting documentation totals with the IPAC.

    2. Reviewing the support listing for payment identification.

    3. Contacting the DOJ collection officer when payment information is incorrect or disagrees with the IPAC.

    4. Inputting the IPAC into RRACS using TAS 20F3844 and requesting an IPAC to transfer the incorrect information back to DOJ.

Wire Transfers/FEDWIRE

  1. Wire transfer systems use computer networks to link to financial institutions. Only approved applications using wire transfers may be accepted. When the daily support listing for FEDWIRE contains unexpected payments, the technician contacts the analyst responsible for handling wire transfers for payment reversal.

    Note:

    Electronic Fund Transfer (EFT) payments are wire transfers. EFT may be in the title of a computer-generated report.

  2. Source documents and payment records supporting the wire transfer/FEDWIRE include:

    1. The support listing containing messages providing transaction details.

    2. SF 215-C (DT) containing total wire transfer transaction(s) for the day. The DT must equal the daily total on the bottom of the support listing and the DT number must be printed on the support listing. After receiving the DT, the technician confirms receipt by providing the date in box 2 for reporting purposes.

    3. The SF 5515 (Debit Voucher) for reversing or correcting wire transfer/FEDWIRE transactions. DVs may be issued for dishonored checks for insufficient funds to support previously agreed-to automatic EFT transactions, or to correct erroneous deposits.

Direct Debit Installment Agreement

  1. A Direct Debit Installment Agreement (DDIA) is a method of collecting payments. A taxpayer makes arrangements with collection personnel to repay tax liabilities in installments. The taxpayer signs an agreement authorizing IRS to withdraw monthly installment payments from his/her bank account electronically.

  2. The financial institution prepares a manual SF 215-A and records it in the Collection Information Repository (CIR) on the payment due date.

  3. The financial institution creates and transmits to IRS a tape of all transactions which fail to process properly. These items are supported by debit vouchers which are passed through the Pittsburgh branch of the Cleveland Federal Reserve Bank.

  4. The campus is responsible for:

    1. Monitoring the progress of all transactions including EFT 12 (debit) and EFT 18 (credit) identify transactions associated with DDIA. DTs must correspond with each EFT 12 summary. Likewise, a DV for each EFT 18 summary is required. All EFT 12 and EFT 18 transactions must be included in EFT 16 and EOD 16 reports on the appropriate dates. The journal contains the EFT 12, the EFT 18, and the DT/DV.

    2. Maintaining a log sheet to ensure all EFT 12 and EFT 18 processing is completed. Log formats may be established by individual campuses. Missing entries and mis-matched dollar amounts help identify problems quickly.

    3. Reconciling and balancing the DT with the EFT 12 summary daily.

    4. Journalizing entries through the Deposit Control menu.

    5. Reconciling and balancing the debit vouchers with the date in box 2, EFT 18 summary daily, and journalizing the entries.

    6. Preparing Form 2424 (Account Adjustment Voucher) and journalizing transactions by debiting the proper SCCF account and crediting account 1720 (Dishonored Checks, Adjustments) for debit vouchers not received when the EOD 16 is ready for journalizing, and reclassifying the tax class when the EOC identifies the payment as other than tax class 1.

    7. Reconciling daily, and balancing EFT 12 and EFT 18 with EFT 16 and EOD 16 and contacting the financial institution or the NHQ transfer analyst to initiate a voucher trace when a DV is not received within 10 business days of receiving the deposit. Debit vouchers are processed through the Pittsburgh FRB if a DV is not received within 10 workdays of the making of the deposit.

    8. Initiating research with IT to locate missing runs and/or reports (failure to ensure processing of all runs or receipt of all DT/DVs results in a improper posting to the MF, or in erroneous entries in RRACS). The financial institution statements should be retained for three years from the date of the statement.

    9. Coordinating with Collection and IT to ensure payments and tapes are generated and sent to the financial institution.

State Income Tax Levy Program (SITLP)

  1. The SITLP coordinator in each W&I campus has overall responsibility for the coordination between the state and the campus. Procedures are sent to each SITLP coordinator and NHQ Collection. A list of the SITLP coordinators is available on the Servicewide Electronic Research Program (SERP) website at: http://serp.enterprise.irs.gov/databases/who-where.dr/sitlp_coord.htm.

  2. States join SITLP and become operational after a memorandum of understanding (MOU) is signed and successful test files are processed. The participating states are:

    STATE STATE
    Alabama Michigan
    *Alaska Minnesota
    Arizona Missouri
    Arkansas Nebraska
    California New Jersey
    Colorado New Mexico
    Connecticut **New York
    Delaware **North Carolina
    District of Columbia Ohio
    Georgia Oklahoma
    Idaho Oregon
    Illinois Pennsylvania
    Indiana Rhode Island
    Iowa South Carolina
    Kentucky Utah
    Louisiana Vermont
    Maine Virginia
    Maryland West Virginia
    **Massachusetts Wisconsin

    Note:

    *Alaska participates in the Alaska Permanent Fund Dividend Levy Program (AKPFD). This is a similar matching program, but the levy attaches to the state's permanent fund and dividend rather than a state income tax refund. AKPFD levy files are converted into a State Income Tax Levy Program (SITLP) format for processing through TDA 55/56 in Fresno.

    Note:

    **These states are participating in SITLP; however they do not use EFTPS to send in their SITLP levy payments.

    Note:

    As of June 2014, all current non-EFTPS state agencies converted to EFTPS for their SITLP payments.

Federal Agency Tax Payment System (Ogden Only)

  1. Tax payments received from federal agencies are processed by FEDTAX II as part of EFTPS. FEDTAX II records payments and DV/DTs are included with EFTPS at the Ogden campus and require no separate accounting.

Electronic Federal Tax Payment System (EFTPS) (Ogden Only)

  1. The EFTPS provides a daily automated journal file for posting transactions to RRACS. The accounting technician contacts the Submission Processing RACS Headquarters unit and the CFO RACS (OS:CFO:FM:A:S) office to receive further instructions for journals that did not post to RRACS.

  2. If the EFTPS batch journal does not post to RRACS, the accounting technician must prepare a manual journal.

  3. EFTPS creates four activities requiring RRACS input to the general ledger:

    1. DT journal

    2. DV journal

    3. Deposit reclassification journal

    4. Tape Edit Processor (TEP) journal

  4. The following programs transmit through EFTPS:

    1. Wire transfer/FEDWIRE

    2. State Income Tax Levy Program (SITLP)

Electronic Federal Tax Payment System (EFTPS) Deposit Ticket Journal (Ogden Only)
  1. The financial agent provides the classification for each DT sent by EFTPS to RRACS.

  2. DTs are sorted by settlement date in EFTPS.

  3. The analyst uses the summary report to verify all DTs have been received and journalized.

  4. The automated batch journal number begins with the number 110.

  5. If a manual journal is required, the technician prepares a 210 journal entry from a printed copy of the EFTPS DT to support each journal entry. The DT lists all of the batch numbers sent by EFTPS.

  6. Through automated or manual posting, the technician enters the following actions in the journal:

    1. Debits the appropriate account 2100 tax class accounts or tax class 9, revenue suspense.

    2. Credits one or more of the EFTPS suspense accounts.

  7. The EFTPS suspense accounts are:

    Account Number Account Name
    4125 EFTPS Suspense for Master File - BMF
    4225 EFTPS Suspense for Master File - IMF
    4425 EFTPS Suspense for NMF
    4765 EFTPS Miscellaneous Suspense
  8. The DT does not identify user fees and non-revenue items. Non-revenue deposit items are initially classified into account 4765 (EFTPS Miscellaneous Suspense, Ogden Only), but later reclassified.

  9. Federal Payment Levy Program (FPLP) DTs received through IPAC, rather than CIR, are journalized to different accounts:

    1. After the money is received through IPAC, prepare a manual journal to debit account 2910 (IPAC Receipts) and credit account 4765 (EFTPS Miscellaneous Suspense, Ogden Only).

    2. The EFTPS journal 114 debits account 4765 (EFTPS Miscellaneous Suspense, Ogden Only) and credits account 2910 (IPAC Receipts), and debits the account 21XX tax classes and credits the appropriate EFTPS suspense accounts.

    3. RRACS is programmed to recognize the FPLP DT journal record by the record code 5. Normal EFTPS DTs contain record code 1.

Electronic Federal Tax Payment System (EFTPS) Debit Voucher Journal (Ogden Only)
  1. The financial institution provides tax classification information for each EFTPS DV.

  2. The analyst uses the DT/DV summary report to verify that all DVs have been received and journalized.

  3. The analyst uses the printed DV as the source document for journalization.

  4. The automated batch journal number begins with number 111.

  5. If a manual journal is required, prepare journal 221 to debit the appropriate suspense account and credit the account 21XX tax class.

  6. For Federal Levy Program (FPLP) debit vouchers, a manual journal from IPAC debits account 4765 (EFTPS Miscellaneous Suspense, Ogden Only) and credits account 2910 (IPAC Receipts).

  7. The EFTPS 114 journal debits account 2910 (IPAC Receipts) and credits account 4765 (EFTPS Miscellaneous Suspense, Ogden Only), and debits the appropriate EFTPS suspense accounts and credits the account 21XX tax classes. Record code 6 identifies the EFTPS journal record.

Electronic Federal Tax Payment System (EFTPS) Deposit Reclassification Journal (Ogden Only)
  1. The EFTPS reclassification summary report is the source document for the automated batch reclassification journal number beginning with number 112. Included on the EFTPS reclassification summary report are debit or credit transactions reclassified by the EFTPS system including the following transactions:

    1. A payment or debit transaction misclassified by the financial agent.

    2. A record changed to a different tax class or MF by error correction.

    3. A record changed to a different tax class or MF as a result of an auto correction during loading and validating.

    4. Batches rejected during EFTPS loading and validating are reclassified to tax class 9 “Miscellaneous Receipts”, MF 7, until a corrected batch is resubmitted. The EFTPS reclassification summary report with rejected batches from BMF is reviewed when the reclassification program is unable to determine the original MF.

    5. Special fund payments may assign tax type codes that EFTPS is unable to classify. When this occurs, EFTPS assigns a pseudo tax class to classify these special fund payments to tax class 9 “Miscellaneous Receipts”.

  2. The table below describes the special fund payments by tax type and class:

    Tax Type Pseudo Tax Class Description
    68770 P Photocopy Fees
    01210 C Conscience Fund
    54321 O Installment Fee New
    54323 R Installment Fee REI
    54324 E OIC User Fee
  3. Other reclassifications must be completed with a manual journal when the transactions are deleted from the EFTPS suspense file.

  4. The EFTPS reclassification summary report is divided into two parts:

    1. Part 1 is the tax class reclassification containing the net change in tax classes, identified by a comparison between the tax type codes and the DT and by changes in tax types made by error correction or auto correction.

    2. Part 2 is the MF reclassification based on a comparison between the tax type codes and the MF in the batch header, including MF changes created by auto correction and error correction.

  5. When creating a manual reclassification journal, the technician uses the net change column.

  6. The EFTPS reclassification list includes:

    1. Detailed information of the transactions that are reclassified

    2. Pseudo tax codes

Electronic Federal Tax Payment System (EFTPS) Tape Edit Processor (TEP) Journal (Ogden Only)
  1. A Tape Edit Processor (TEP) journal record is prepared for each MF sent to ECC.

  2. The automated batch journal number begins with number 113.

  3. If a manual journal is required, use the EFTPS daily transaction release summary report to prepare journal 417 for BMF and 418 for IMF.

  4. For the normal credit balance, debit the ECC suspense account and credit the EFTPS suspense account using the following:

    1. For BMF transactions, the technician debits account 4110 (ECC Suspense for MF - BMF) and credits account 4125 (EFTPS/FPLP Suspense for MF - BMF, Ogden Only).

    2. For IMF transactions, the technician debits account 4210 (ECC Suspense for MF - IMF/CADE) and credits account 4225 (EFTPS/FPLP Suspense for MF - IMF, Ogden Only).

  5. If the EFTPS daily transaction release summary report has a debit balance, use the following:

    1. For BMF transactions, the technician debits account 4125 and credits account 4110.

    2. For IMF transaction, the technician debits account 4225 and credits account 4210.

Deposit Funds

  1. The deposit fund is a fund account and not an appropriation account.

  2. For erroneous refunds from the deposit funds, the technician is responsible for:

    1. Repaying the deposit fund from the refund appropriation account 20X0903.

    2. Establishing the receivable for the erroneous refund.

  3. Repayment is required because deposit fund monies are in trust for the U.S. government.

Offer-in-Compromise (OIC)

  1. Offer-in-Compromise (OIC) remittances with Form 656 (Officer-In-Compromise Application Fee) are deposited in a financial institution. A copy of Form 656 is sent to the Cincinnati Service Center (CSC). Remittances received with Form 656 are not applied to the taxpayer's liability.

  2. The technician furnishes the proper documents for input to RRACS. The documents include research, follow-up, IDRS records, and the annual report of amounts recouped from collateral agreements.

  3. RACS receives Form 4710-CG (Automated Offer-in-Compromise Record), Form 2515 (Record of Offer-in-Compromise), Form 3753 (Manual Refund Posting Voucher), or Form 2424 (Account Adjustment Voucher) for processing and input into RRACS.

  4. Accounting prepares the appropriate documents for applying OIC deposits to NMF accounts and notes the action on the related NMF accounts.

  5. At the accounting period month end, the technician forwards a copy of the OIC inventory detail report to the CSC OIC unit for reconciling the deposit record with the general ledger account. The CSC OIC and accounting units coordinate to resolve differences.

Rejected or Withdrawn Offers
  1. When the IRS rejects an offer or the taxpayer withdraws an offer, CSC notifies the technician to refund or apply the deposit to the taxpayer's liability.

  2. Source documents must accompany the rejected or withdrawn offer. The following chart identifies the source documents to forward to accounting:

    If Then
    The deposit is refunded to taxpayer. CSC prepares and provides Form 3753 and AOIC deposit refund report
    The deposit is applied to the
    taxpayer's liability.
    CSC sends the Form 2424 with copies of the Form 3040, Authorization to Apply Offer-in-Compromise Deposit to Liability, or the taxpayer's written authorization.
  3. Requests for refunds must be processed expeditiously. CSC forwards the refund requests to the accounting refund scheduler who:

    1. Prepares a manual refund payment for the refund amount.

    2. Routes the Secure Payment System refund schedule to the certifying officer for certification and processing.

  4. Deposits applied to the taxpayer's liability must be reclassified to adjust the amount between the deposit fund and revenue receipts.

  5. When NMF accounts are involved, number the Form 2424 (Account Adjustment Voucher) using tax class 6, doc code 76, and the date of the deposit remittance. The first digit of the block number indicates the true tax class. For additional information, see IRM 3.17.46 , Automated Non-Master File Accounting.

Interest Accruals
  1. The IRS assesses interest on an outstanding tax liability for an accepted Offer-in-Compromise and for an approved Form 3040 (Authorization to Apply Offer-in-Compromise Deposit to Liability).

  2. Interest accrual ceases when a deposit is applied to satisfy a tax liability.

  3. Interest is not payable on deposit fund money refunded to the taxpayer.

Accepted Cash Offers
  1. The OIC is accepted when the field office or the CSC OIC unit determines the amount offered reasonably reflects the IRS's collection potential. For cash offers, the amount held in account 4710 (Offers-in-Compromise, Cincinnati Only) is usually the amount offered by the taxpayer.

  2. CSC prepares and forwards Form 2424 (Account Adjustment Voucher), with the deposit received date noted to the technician, for transferring the OIC deposits to revenue receipts.

  3. The technician processes the credit copy of Form 2424 (Account Adjustment Voucher). The debit copy is maintained in the accounting OIC file and is used for balancing the deposit fund at month end.

  4. The technician prepares Form 3177 (Notice of Action for Entry on MF) for blocking, numbering and processing.

  5. Accounting receives Form 2424 from the OIC clerk and:

    1. Blocks and numbers Form 2424 using blocking series. For additional information see IRM 3.17.243, Miscellaneous Accounting.

    2. Prepares Form 813 (Document Register) for each block on Form 2424.

    3. Sends Form 2424 with all blocks completed to RACS.

  6. The RRACS technician is responsible for :

    1. Inputting Form 2424 (Account Adjustment Voucher) data into RRACS, noting the journal number on Form 813 (Document Register).

    2. Sending to Data Conversion, blocks of Form 2424 with Form 813, Part 1.

    3. Sending Form 2424, Part 2 for SCCF processing with a copy of the acceptance letter and Form 813.

    4. Sorting the acceptance letters with Form 2424 in each block by NMF account status.

    5. Preparing NMF block summary on back of Form 813, Part 2.

    6. Reclassifying and notating the journal number on supporting documents.

    7. Sending Form 813, Part 2, with NMF block summary data to transcription for NMF SCCF clearance.

    8. Placing the closed Form 2424 or Form 4710 (Offers-in-Compromise, Cincinnati Only) in the current month hold file until balancing at month end.

  7. The technician maintains the OIC file and places the closed Form 2424 or Form 4710 in alphabetical order in the closed file after balancing at month end.

Accepted Installment (Deferred) Offers
  1. The OIC deposit held in account 4710 (Offer-in-Compromise, Cincinnati Only) is only a portion of the amount offered by the taxpayer.

  2. The processing of installment offers is similar to cash offers. Compliance Services Collections Operations (CSCO) prepares and forwards Form 2424 (Account Adjustment Voucher) and the offer clerk prepares Form 813 (Document Register).

  3. NMF installment offers are maintained separately on the IDRS.

  4. The technician is responsible for:

    1. Requesting to transfer the offer accounts from the current control status to the installment control status after receiving duplicate copies of Form 656 (Offer-In-Compromise Application Fee), a copy of the offer acceptance letter and Form 2424.

    2. Preparing Form 3809 for writing off the amount compromised.

    3. Numbering the Form 2424 using tax class 6 and doc code 76 to transfer the deposit credit from the deposit fund to revenue receipts. Number the Form 2424 using tax class 6 and doc code 76 to transfer the deposit credit from the deposit fund to revenue receipts.

    4. Inputting the installment offer into RRACS through the accounting application and the deposit control main menus and reclassifying, as appropriate.

    5. Noting the journal number on Form 2515 (Record of Offer-in-Compromise) or Form 4710-CG (Automated Offer-in-Compromise Record).

    6. Filing in the closed-case file.

    Note:

    For NMF accounts, the technician is responsible for:

    1. Using the applicable transaction code.

    2. Showing the applicable installment status code.

    3. Attaching a copy of the accepted letter.

    4. Numbering Form 3809 (Miscellaneous Adjustment Voucher).

    5. Preparing Form 813 (Document Register).

    6. Inputting NMF SCCF in a normal manner.

Inter-Site Transfer of the OIC Case File
  1. When a taxpayer moves to an address that is under the jurisdiction of another campus, while completing the terms of an installment offer and/or collateral agreement, the OIC is transferred if a written request is received by the taxpayer.

  2. The OIC uses unique numbers to control and identify each offer. If an offer is transferred or removed from one AOIC Pyramid database, it cannot be re-established on another campus's Pyramid database. Therefore, only under special circumstances an offer be transferred.

  3. The OIC unit in CSCO prepares and forwards Form 2158 (Credit Transfer Voucher) showing TAS 20X6879, taxpayer identification information, and the address of the receiving campus.

  4. Follow the steps below when transferring:

    1. Photocopy Form 2515 (Record of Offer-in-Compromise) or Form 4710-CG (Automated Offer-in-Compromise Record).

    2. Note on the copy the transfer date, the new taxpayer address and the location of the campus where the case is being transferred.

    3. Send the original Form 2515 or Form 4710-CG and the complete offer case file to the new campus via Form 2158.

    4. Transfer NMF accounts via Form 514-B (Credit Transfer Voucher). The technician sends a copy with the offer case file.

Seized Property (Ogden Only)

  1. The Collection field offices document the property seized in connection with enforced collection of taxes and report it to the campus for accounting and control.

  2. Accounting receives Form 2433 (Notice of Seizure), Part 7A, from Collection for each seizure, or supplemental seizure, and processes them as follows:

    1. Numbers the Form 2433 consecutively by each field office and shows the taxpayer’s name and address, description of the property, location where stored and inventory value of the property described.

    2. Places an alpha (A, B, C, etc.) after the original number on a supplemental Form 2433.

    3. Uses the Form 2433 journal number to input the transaction into RRACS. The supplemental Form 2433 is associated with the open case file.

    4. Researches the open case files to validate proper application when an action is taken on the seizure. When a seizure case file is completely resolved, accounting places it in an alpha closed file.

  3. When a property value cannot be immediately determined for audit trail purposes, the technician journalizes these items to RRACS with 0 value as follows:

    1. Inputs Form 2433 to RRACS to establish an audit trail.

    2. Files Form 2433, Part 7, in the open case file. The seized property subsidiary account is maintained in RRACS in seizure number order.

  4. Collection forwards the Form 2433, Part 7B, appropriately marked, when:

    1. Cash is applied to the Taxpayer Delinquent Account (TDA) by the revenue officer.

    2. The taxpayer or a third party redeems the property.

    3. The property is released to the taxpayer or a third party.

    4. The property is sold or acquired by the U.S. government.

      Note:

      When a sale is a deferred payment, there may be multiple Forms 2433 Part 7B submitted, as well as multiples of Form 1963 (Collection Register). For additional information, see IRM 3.17.63.5.24.1.1(5), Proceeds of Sale of Seized Property (Ogden Only).

  5. The monthly field office inventory report includes seized property.

  6. When seized property is disposed of by redemption, release, sale, or acquisition, Form 2433 (Notice of Seizure), Part 7B, is used as the closure document to remove the property from the seized property inventory when the box is checked indicating that this action closes the seizure.

    1. For any Form 2433 (Notice of Seizure) that is not processable due to missing information or illegibility, the technician returns it to the originating technical services field office with a memorandum requesting corrections.

    2. If Form 2433, Part 7B, is received and Part 7A has not been received, the accounting section must send a memorandum to the originating technical services field office requesting Part 7A. If there is no response within 60 days, the technician follows up with the originating technical services field office.

    3. Form 2433, Parts 7A and 7B, must be journalized in the accounting month with the date received.

Sales of Seized Property (Ogden Only)
  1. Property seized and reported may be:

    1. Redeemed by the taxpayer or a third party.

    2. Released to the taxpayer or a third party.

    3. Sold to the highest bidder.

    4. Acquired by the U.S. government.

  2. When expenses are incurred and not paid directly to the vendor, the expenses are assessed against the taxpayer's account, and the cost is debited to the taxpayer's account using TC 360. If payments are received for the release or redemption, the expenses are debited with a TC 360 and paid simultaneously with the application of the payments by inputting the related credit through TC 694. The revenue officer prepares Form 2436R, Seized Property Release/Redemption Report, to request TC 360 input and/or a TC 694 input. For additional information see IRM 5.10.4.16 , Form 2436R, Seized Property Release/Redemption Report.

    Note:

    All payments received for the release or redemption of seized property must be submitted with Form 2433, Part 7B, to the service center accounting branch after disposition of property to Ogden and should not be submitted on Form 795 (Remittance and Return Report). Do not post release/redemption payments to the balance due accounts on the Integrated Collection System. The module balances update automatically after the Form 2436R is processed. The documents should be submitted on Form 3210 (Document Transmittal), with the seizure number included to:
    Ogden Submission Processing Center
    Attn.: Payment Perfection
    1973 N. Rulon White Blvd., Mail Stop 2003 (for remittances over $100,000) or
    Mail Stop 1999 (for remittances $100,000 or less)
    Ogden, UT 84404

Proceeds of Sale of Seized Property (Ogden Only)
  1. The technician receives Form 2436 (Seized Property Sale Report) in duplicate, with instruction regarding how to dispose of proceeds from the sale of seized property credited to the deposit fund account. Before disposition, the technician is responsible for processing Form 2436 by:

    1. Verifying that the amount shown on the total line, item 5, does not exceed the amount currently on deposit in account 4720 (Sales of Seized Property, Ogden Only), as shown on Form 1963 (Collection Register).

    2. Preparing Form 2424 (Account Adjustment Voucher), both debit and credit copies for the amount applied to account 4720. Enter secondary and/or tertiary transaction codes, and amounts for accruals and expenses.

    3. Preparing Form 813 (Document Register) for Form 2424 credit copies and routing to RACS for processing.

    4. Posting the transaction in RRACS.

    5. Attaching Form 2436 and filing a copy in the case file.

  2. Proceeds from the sale of seized property are journalized in the deposit fund account using Form 1963 and Form 2433 (Notice of Seizure), Part 7B.

  3. The technician is responsible for preparing, forwarding and processing Form 2424, with the deposit date noted in cases when expense of sale exceeds gross receipts.

  4. The technician processes the Form 2436 within ten calendar days from the date received and date stamps the Form 2436.

  5. In deferred payment seized property sales, Collection prepares and forwards Form 1963 and Form 2433, Part 7B. For initial payments, Collection writes: Partial Proceeds from Sale of Seized Property,on the Form 2433 Part 7B. When submitting the final Part 7B, collection writes: Final Payment from Sale of Seized Property, Deferred Payment. When Collection submits the final Part 7B, the box will be checked indicating this action closes the seizure and the remittance will include the Form 2436.

Surplus Proceeds (Ogden Only)
  1. A surplus exists when a taxpayer's property is settled for more than the liability owed. The taxpayer may request the surplus be refunded. The collection unit approves or disapproves the taxpayer's refund request. When approved, the collection unit prepares and sends the technician a memorandum (in duplicate) authorizing the disposition of the surplus proceeds.

  2. The same technician in Ogden then date stamps it, and processes it within ten calendar days from the date of receipt.

  3. The technician is also responsible for:

    1. Reviewing the Deposit Fund Record (DFR) and making sure that the amount to be refunded is currently on deposit in the deposit fund account.

    2. Contacting the Collection unit when the DFR is less than the amount authorized by the memorandum.

    3. Making the following notation on the refund memorandum; amount verified for refund.

    4. Sending a copy of the memorandum to the Refund Unit.

    5. Forwarding Form 3753 (Manual Refund Posting Voucher) for certification and for the preparation of the Secure Payment System (SPS) schedule.

    6. Journalizing SPS to RRACS.

Surplus Funds (Unclaimed) (Ogden Only)
  1. Surplus funds from the sale of seized property are renamed unclaimed funds when they remain unclaimed for more than one year.

  2. The accounting section receives the memorandum with instructions to apply the surplus funds to the Treasury general fund account.

  3. The accounting section is responsible for processing the unclaimed funds in the following manner:

    1. IPAC the unclaimed funds to Beckley Finance Center (BFC) with ALC 20090003. The IPAC remarks field must indicate the unclaimed funds amount must be applied to Treasury general account 201099.

    2. Use customer agency account symbol 20X6879 for disbursements from the deposit fund account.

    3. Use 549 window (IPACD Deposit fund) to journalize the IPAC transaction. Debit account 4720 (Sales of Seized Property) and credit account 7002 (Deposit Fund).

  4. BFC applies and reports the funds to the Treasury general account 201099 (Fines, Penalties and Forfeitures, not otherwise classified).

Sale of Seized Property Null and Void (Ogden Only)
  1. A null and void situation exists when a successful buyer fails to purchase the property. The deposit initially paid by the buyer is then forfeited. The Collection unit prepares Form 2436 (Seized Property Sale Report) for the forfeited funds and sends the form to a Ogden accounting technician. The Ogden accounting technician prepares the IPAC form and gives it to the RRACS DBA with a copy of the Form 2436 as back up.

Seized Property Redeemed (Ogden Only)
  1. Real property may be redeemed after it is sold to the purchaser. The IRS reimburses the purchaser for the amount paid plus interest. The amount paid is documented on Form 1963 (Collection Register) and its source document is supported by a memorandum (in duplicate) with transaction details. Process Form 1963 in the same manner as described above, with the following exceptions:

    1. When preparing Form 1963, the technician lists the purchaser's name and last known address, and enters the following information in the description column; Redemption of real property after sale. Purchaser not located in county.

    2. Form 1963 is filed as part of the case file.

    3. Redemption payments are input to RRACS.

Acquired Property (Ogden Only)
  1. The federal government may acquire title to real or personal property by bidding it in at the time of sale. The accounting section in Ogden is responsible to:

    1. IPAC the funds to BFC using Treasury account 200913.

    2. Use Treasury account 20-3220 to credit one of the 2300 (Receipt Account) series.

  2. All other transactions including acquisition, subsequent redemption and subsequent sale, or other disposition of real or personal property are recorded in RRACS. Source documents are filed in the case file.

Disposition of Seized Property by Acquisition (Ogden Only)
  1. The Collection unit completes Form 2433 (Notice of Seizure), Part 7b and Form 2436 (Seized Property Sale Report), and forwards them to the accounting section in Ogden after disposing of the seized property. The accounting section is responsible for:

    1. Date stamping Form 2433 and Form 2436 upon receipt.

    2. Processing Form 2436 within ten calendar days from the receipt date.

    3. Preparing Form 2424 (Account Adjustment Voucher) debit and credit copy with the dollar amount shown on Form 2433, Part 7B, and Form 2436.

    4. Entering the secondary and/or tertiary transaction codes, and the dollar amount for accruals and expenses shown on Form 2436, item 5.

    5. Journalizing the document information into RRACS.

    6. Attaching Form 2436 for debiting Form 2424.

    7. Filing Forms 2436 and 2424 in the open case file.

Redemption of Real Property (Ogden Only)
  1. Real property acquired by the government through buy-in or other means may be redeemed under certain conditions provided by the collection unit's IRM instructions. The technician is responsible for:

    1. Receiving the memo posting document (in duplicate) and identifying each redemption transaction (the taxpayer's account received credit for the value at the time of acquisition, any amount received through the redemption is deposited as revenue receipts). They are not applied to the taxpayer's account.

    2. Verifying that the amount of redemption (excluding interest) shown on the memo posting document agrees with the related district office inventory record subsidiary file. Contact the originating office for resolution, when the amount and file are in disagreement.

    3. Using the acquired property window for inputting transactions relating to the redemption.

Deferred Payments (Ogden Only)
  1. For remittances with offers from successful buyers, or payments from a deferred payment from the sale of acquired property, the technician uses Form 1963 (Collection Register), to support the entry. Collection prepares and forwards a memorandum with an explanation. The technician is responsible for:

    1. Receiving the memorandum, as described above.

    2. Inputting the transaction to RRACS and the seized property sale account.

    3. Transferring deposit funds to the revenue receipt account for applying to the acquired property account when the proceeds from sale are received.

Processing Total Payments (Ogden Only)
  1. When remittances from a sale of acquired property are received, the technician is responsible for:

    1. Depositing the dollar amount into the revenue receipts account.

    2. Crediting account 4220 (Service Center Suspense NMF) and debiting account 7100 (Acquired Property) using window 302 Acquisition in RRACS.

    3. Forwarding Form 813 (Document Register), both the original and copy for posting to the Service Center Control File (SCCF).

    Note:

    When posting journal entries to the acquired property account, if the payment is less than the recorded value of the acquired property, the technician inputs the difference as a loss. Consequently, if the payment is greater than the recorded value the technician inputs the difference as a profit.

Processing Forfeitures (Ogden Only)
  1. The collection unit prepares and forwards a memorandum (in duplicate) to the accounting section for processing. The accounting section in Ogden is responsible to:

    1. IPAC the amount forfeited to Treasury account symbol 200913.

    2. Fax a copy of the memorandum to Beckley Finance Center for processing with the IPAC.

    3. Route the memorandum for posting and attach to Form 1963 (Collection Register).

  2. Journalize the IPAC into RRACS and attach the memorandum and Form 1963 to an IPAC source document.

Disposition of Acquired Property Other Than By Sale (Ogden Only)
  1. Under certain conditions, property acquired by the government in payment of taxes may be disposed of by survey action authorizing the write-off by assignment for administrative use, or by transfer to another federal agency. Acquired property may be subject to loss due to theft or destruction, prior to disposition. The collection unit is responsible for:

    1. Authorizing the removal of property valuations from the general ledger accounts under the above conditions.

    2. Preparing and forwarding an instruction memorandum (in duplicate) to the accounting section for processing.

    3. Verifying the dollar amount stated in the memorandum agrees with the acquisition value in RRACS.

    4. Contacting the collection unit for adjustment when discrepancies occur.

Prior Lien Holder (Ogden Only)
  1. Acquired property may have a prior lien-holder attached to it. The credit from the acquired property is not reversed. The collection unit must authorize the credit reversal using appropriate documentation. The collection unit is responsible for:

    1. Preparing and forwarding a memorandum (in duplicate) to notify the accounting section there is a prior lien-holder and that the property cannot be acquired.

    2. Reconciling the dollar amount with the acquisition value.

    3. Verifying the dollar amount stated in the memorandum agrees with the acquisition value on Form 2436 (Seized Property Sale Report).

    4. Contacting the collection unit for adjustment when there is a discrepancy with the dollar amount in the memorandum and acquisition value.

  2. The accounting section verifies that the amount in the memorandum agrees with the acquisition value on the Form 2436. If there is a discrepancy, the technician contacts the collection unit for adjustment.

Guam (PL 92-606) and Northern Mariana Islands (PL-241) Procedures (Austin Only)

  1. IRC 7654 (Coordination of United States and certain possession individual income taxes) provides that net individual collections from Guam or Northern Mariana Islands (NMI) are credited to the Treasury of Guam or NMI.

  2. Taxpayers must file Form 5074 (Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands) to report adjusted gross income of $50,000 or more with gross income of $5,000 or more derived from Guam or NMI sources.

  3. Form 5074 is transshipped to the Austin campus for centralized processing. After processing, the compliance section completes Form 5074, indicating the net amount of tax due Guam or NMI.

  4. Compliance forwards Form 5074 to the accounting section who maintains a file and a list of any completed forms.

  5. Monthly, accounting is responsible for:

    1. Updating the Form 5074 list with the name, SSN, and amount of tax due Guam or NMI from line 49 of Form 5074.

    2. Totaling the amount from the entire list.

    3. Verifying the list total with a separate summary from the 5074 forms on file.

  6. Quarterly, the accounting unit in Austin is responsible for:

    1. Preparing the final lists.

    2. Verifying that all 5074 forms are included on the final lists.

    3. Transmitting the final lists and copies of Form 5074 (Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands), in duplicate, to the Custodial Systems & Analysis Section in the CFO organization. The list must be received no later than the 15th day following the last day of each quarter. All 5074 forms received after the preparation of the final list are carried forward to the next quarter's list.

Debtor Master File

  1. The Debtor Master File (DMF) is now part of IMF.

  2. IRC 6402, Authority to make credits or refunds, subsections (c), (d), and (e), require that a taxpayer's overpayment is applied to:

    1. Delinquent child support

    2. Non-tax debts owed to federal agencies

    3. Delinquent state income tax obligations

  3. Offsets occur after the IRS certifies a refund for payment by Fiscal Service, before the refund is issued to the taxpayer.

  4. For additional information on the Treasury Offset Program (TOP), see IRM 21.4.6, Refund Offset.

Debtor Master File (DMF) Activity Reports
  1. The DMF generates activity reports as follows:

    1. By agency, DMF01 (weekly) and DMF11 (monthly)

    2. By campus, DMF02 (weekly) and DMF12 (monthly)

    3. By sub-agency, DMF04 (weekly) and DMF14 (monthly)

Debtor Master File Transfer of Funds
  1. When transferring funds, the accounting section debits the ALC for the reversal (TC 897) amount, and credits the campus' ALC. When this occurs, the campus should ensure that the proper journalization is completed.

  2. Accounts Management debits federal agencies’ accounts for reversals (TC 897) of offsets (TC 896) made prior to 01/11/99. The technician transmits the offsets and the related reversals to the federal agencies using IPAC.

  3. The cut-off date for transferring funds using IPAC is the last day of the calendar month. However, RRACS processing continues to 11:00 a.m. of the second workday of the following month.

Debtor Master File Balancing Process
  1. For each cycle of activity, compare the following to ensure correctness:

    1. CADE 2 and BMF recaps of assessments, abatements and other post-journalized documents

    2. DMF recap tape

    3. IPAC transmission through the Central Accounting Reporting System

  2. These totals should match. If the totals do not match, contact a tax analyst in HQ Submission Processing (SP) immediately for resolution and provide the following:

    1. Cycle number

    2. Amount of the discrepancy

    3. Transactions that are out of balance

  3. HQ SP researches and initiates any corrective action required. The campuses are notified of any actions. The corrective action process takes approximately 12 cycles to complete.

  4. Weekly, reconciling transactions are recorded until the problem is resolved.

Treasury Offset Program/Debtor Master File Manual Offset Reversal Transactions
  1. When a Treasury Offset Program (TOP)/Debtor Master File (DMF) manual offset reversal transaction is required, Accounts Management prepares Form 3809 (Miscellaneous Adjustment Voucher), and forwards the completed document to the accounting section. A transcript of the transaction and an explanation of the adjustment must be included on the form with supporting documentation. As a reference, the IPAC document reference number is included on Form 3809. If the offset reversal is for a DMF account, the technician must provide the agency and sub-agency code. If Form 3809 is not received in the accounting section for matching to the IPAC transmission, the technician contacts HQ SP.

  2. The accounting section determines if Form 3809 is prepared correctly using the table below:

    Manual Offset Reversals
    If Then Accounting
    Form 3809 is prepared correctly 1. Sort, batch and number the Form 3809 by tax class.
    2. List Form 3809 on Form 813 (Document Register).
    3. Forward Forms 3809 and Forms 813 to RACS for processing.
    Form 3809 is not prepared correctly Contact Accounts Management for clarification or any corrections.
  3. The HQ CFO emails Fiscal Service requesting the manual reversal of a TOP/DMF l offset. Fiscal Service IPACs a credit to IRS using ALC 20096500 and faxes the taxpayer ID information to the HQ CFO. The HQ CFO credits the appropriate campus and emails a copy of the taxpayer ID information to the campus DBA.

  4. After the campus receives the IPAC, the accounting section uses window 541 to:

    1. Debit account 2910 (IPAC Receipts)

    2. IPACR receipts

    3. Credit account 4985 (IPACR Suspense)

  5. Upon receipt of Form 3809 (Miscellaneous Adjustment Voucher) from Accounts Management, the accounting section is responsible for:

    1. Preparing a reconciliation sheet and journalizing the total amount using the RRACS accounting application window 400. See (c) below.

    2. Using window 469 to debit 4985 (IPACR Suspense), credit 6330 (Debtor Master file Offset), and reclassify to debit 2410 (Refund Repay Principal) and credit 2910.

    3. Using window 400 to debit 6330, and credit the taxpayers' MF account in accordance with Form 3809 (example: IMF 4220). After journalizing Form 3809, release to batching.

  6. Separating Form 3809 (Miscellaneous Adjustment Voucher).

  7. Retaining the debit Form 3809, reflecting account 6330 (Debtor Master file Offset) with a copy of Form 813 (Document Register), as a source document for month end balancing.

  8. Forwarding the credit Form 3809, reflecting the taxpayer account activity, and Form 813.

  9. Calling HQ SP after journalizing Form 3809, HQ SP then notifies the requester's office that Form 3809 is processed. The requester's office monitors the taxpayer’s account on IDRS until the credit posts to the taxpayer’s account.

  10. Occasionally, a computer-generated reversal cannot occur. For additional information, see IRM 21.4.6, Refund Offset procedures.

Statement of Difference (SOD)

  1. The Statement of Difference (SOD) automated reports (0652 Deposits and 0653 Disbursements) are available mid-month after the HQ CFO analyst uploads the data to RRACS. The reports are used as a summary for any differences that exist.

  2. Once processed, an email is generated and sent to the service centers and CFO contact points:

    • 0652, SPC Statement of Difference, Deposits

    • 0653, SPC Statement of Difference, Disbursements

  3. The RACS 0652 and 0653 reports show all deposits (revenue) and disbursements (refunds) discrepancies (if any exist) from each SPC by agency location code. It is used to identify and reconcile differences between IRS deposits and disbursements reported by the SPC and the Fiscal Service.

  4. The CARS reports are available after the EOM processes have been completed. When this information is available, CARS and RACS reports can be used to review and research items in the 0652 and 0653, which will show a summary by month presented with any discrepancies. Under the Deposit-in-Transit System, the detail audit responsibility is performed by the depositing agency rather than the Fiscal Service. This is consistent from month to month following the report month. Prior to month-end processing, accounting balances the Collection Voucher Support Listing with the RACS 017 report for deposits and the TDO Payment, IPACS Support Listing with the RACS 031 report for disbursements.

  5. Within three workdays after the 119 journal posts, the CARS/RACS SOD Summary Report and the Deposit and Disbursement Reconciliation Reports are due to the HQ CFO analyst. All reports that are used to research the CARS/RACS 0652 and 0653 report and the Deposit/Disbursement Reconciliation reports must also be sent, specifically the RACS 017, RACS 031, CARS Collection Support Listing, TDO Payments, and the IPAC Support Listing. The technician sends an email confirmation to the HQ CFO analyst with the signed 0652 and 0653, the signed reconciliation report, and the backup reports and documentation. The service center files a copy of the email and each campus reconciliation report. The email confirmation document confirms the time and date the reconciliation reports were sent and received by the HQ CFO analyst. Each campus must report all deposit and disbursement discrepancies on the Deposit/Disbursement Reconciliation report provided to the HQ CFO analyst. These reports provide the detail records that make up the difference reported on the RACS 0652 and 0653 Report with an explanation of the action taken to resolve each issue. The report must be emailed with any required backup documentation to a HQ CFO analyst at, &CFO:FM:CFM CA Custodial Systems and Analysis, to the CFO mailbox at cfo.rfm.iracs@irs.gov, and to the SP HQ analyst for your campus at WI.SP.RRACS@irs.gov. All of the reports and documentation must be available when requested from HQ CFO analyst.

  6. Use the following sources for the information required on the reconciliation report:

    1. Month – Audit Month on 0652 - SOD, deposits report and 0653 - SOD, disbursements report

    2. RACS 017 (DT/DV) – Net Total DT/DV Amount for the Month

    3. CARS Collection Voucher Support Listing – Subtotal Amount for the Month

    4. Deposit Discrepancy – Difference between RACS 017 and CARS Collection Voucher. The detail of this discrepancy must be presented on the Deposit Reconciliation report

    5. RACS 031 (Confirmed Disbursement Report)

    6. IPAC Support Listing – Grand Total Amount

    7. TDO Payments – Total

    8. Disbursement Discrepancy – Difference between RACS 031, IPAC Support Listing, and TDO Payments. The detail of the discrepancy must be presented on the Disbursement Reconciliation report

  7. The technician completes the information required on the Deposit/Disbursement Reconciliation report using the following information:

    1. Audit Mo/Yr - From the DT/DV or from the 0652 and 0653 report

    2. DT/DV # - Voucher number from the DT/DV

    3. Date Presented (Box 2 date) - OTCnet voucher date

    4. Confirmed Date on Ticket/CIR - Confirmed date on OTCnet (or CIR) DT. Created date on OTCnet (or CIR) debit voucher. Created date on an adjustment DT/DV

    5. Date Received in RACS Unit - Received stamp date on DT/DV

    6. Treasury Amount - Collection Voucher Support Listing

    7. IRS Amount - RACS 017 (DT/DV) report

    8. Action Taken - An explanation of the difference and the corrective action taken

    9. Journal entry numbers for all associated journals

Reconciliation of Deposit Differences
  1. The SOD 0652, SPC Statement of Difference, Deposits, and 0653, SPC SOD, Disbursements, compare summary totals. The Collection Voucher Support Listing and RACS 017 (DT/DV Support List) are used to reconcile DT/DV on the Deposit Reconciliation report. The following reports support the summary totals:

    1. From CARS, Collection Voucher Support Listing information

    2. From RRACS, the RACS 017 DT/DV Support listing

    The Collection Voucher Support Listing shows all DT/DV submitted through Fiscal Service. The RACS 017 report shows all DT/DV journalized into the RRACS system (IRS) for the accounting period. The monthly DT/DV Support Listing identifies the items that support the Fiscal Service total.

  2. During the balancing process, the detail records that make up the difference between the totals reported by Fiscal Service and the totals reported in RRACS are compared during routine processing with the deposit information processed by the Fiscal Service monthly. Four reports are generated when ECC-MTB runs the DT/DV Match:

    1. DT/DV Match Treasury Records 035A

    2. DT/DV Unmatched Treasury Records 035B

    3. DT/DV Unmatched RACS Records 035C

    4. DT/DV Match Error Report 035D

  3. The Records and Report items listed in paragraph (2) above, should be identified and researched during the CIR process. The technician maintains comprehensive history sheets noting actions taken, date of action, name of contact, and descriptive information regarding the action taken.

    Note:

    Error items do not appear on the unmatched reports.

  4. The RACS 035B (Unmatched Treasury Records) and RACS 035C (Unmatched RACS Records) reflect the DT/DV that, for various reasons, did not match during the month. The RACS 035B and 035C items must be verified against each other. Verify each item by matching the Treasury document ID number and dollar amount. Check the DTs from the RACS 035C under journal research to ensure they have been confirmed. If not, a manual confirmation journal must be done (211 journal). If there are offsetting debits and credits with the same Treasury document ID number and money amounts, post 908 and 909 journals. The DBA posts DT/DV under the 908 and 909 window (Reconcile); this deletes the items from the RACS 035B and 035C. The manager must review, initial, and date the listings before the DBA is able to post the 908 and 909 journals. Maintain a log for audit purposes on 908 and 909 journals.

    Note:

    Under message: Reference the original journal number.

  5. DTs dated the last day of the month may not be reported on CIR by the depository until the following month. These DTs should be worked prior to month end processing and can be achieved through a combination of suspense and/or reclass methods in order to not have a SOD. If they are not worked, these items will appear on the SOD and are generally an easily identified timing problem.

  6. The SOD will be received monthly until differences are reconciled.

  7. All differences must be corrected. If RRACS input is correct, contact the financial institution or the Fiscal Service for correction. If RRACS input is incorrect, the correction must be made in RRACS.

  8. Adjustment DT/DVs' prepared date is the date of the original deposit.

  9. The financial institution should be using the prepared date (and not the current date) when transmitting adjustment DT/DVs via OTCnet/CIR. In situations where the depository used the current date erroneously, contact the Fiscal Service for corrective action. The Fiscal Service will correct the date, as well as Doc-ID and ALC, if necessary.

  10. If items have aged over 90 days (audit month), fax a copy of the corresponding DT/DV and supporting documentation to the HQ CFO analyst.

  11. Deposits with aging confirm/create dates are at risk for adverse 90-day aging scorecard ratings and should be researched and resolved.

  12. The formula for calculating the Deposit SOD is:

    IRS - Treasury = Deposit SOD

  13. Any discrepancies are reported on the reconciliation report. The reviewer (DBA or higher level personnel) should review the reports for accuracy and supporting backup documentation before signing or submitting the SOD to HQ. The reconciliation report is verified by comparing it to the 035B/035C and 0652/0653 reports prior to submitting to CFO headquarters.

  14. The Deposit Reconciliation report requires the following signatures:

    1. Preparer

    2. Reviewer

    3. Certifying Officer (Accounting Department Manager)

    Hard copy signatures should be kept on file at the campus. A typed version of the reconciliation report including the preparer, reviewer and the certifying officer signatures should be emailed to a HQ CFO analyst.

  15. The automated 0652 summary report requires the following signatures:

    1. Initial Reviewer Signature

    2. Second Reviewer Signature

    3. Final Reviewer Signature

    Note:

    These signatures can be the same individuals that sign the reconciliation report

    .

Disbursements

  1. This section contains detailed procedures for handling disbursements.

Refund Disbursements

  1. Enterprise Computing Center (ECC) prepares and certifies the voucher and schedule for payment via the Secure Payment System (SPS) for each campus.

  2. The ECC generates Business Master file (BMF) and IMF refunds for overpaid balances.

  3. ECC prepares the voucher and:

    1. Certifies the schedule for payment for each campus.

  4. After the Regional Finance Center (RFC) processes the refunds, ECC prints the certified copy of the refund schedule from SPS and sends it to each campus.

  5. RACS entries are made from the SPS prints. Net Tax Refund Report (NTRR) items and amount are input directly from tape.

  6. One copy is used for journalization.

  7. The second copy is forwarded weekly to ECC at:
    Enterprise Computing Center/IRS
    250 Murall Dr., Mail Stop 1230, Attn: PVS Lead
    Kearneysville, WV 25430.

  8. Manual refunds are prepared for items when there is a need to expedite a refund. Procedures for processing manual refunds are in:

    1. IRM 21.4.4, Manual Refunds.

    2. IRM 3.17.79 , Accounting Refund Transactions.

  9. The documents used for refund disbursements are:

    1. Master file (MF) SF 1166 (Voucher and Schedule of Payments) or SPS with Form 813 (Document Register), Part 2.

    2. Non Master File (NMF) SF 1166 with related documents: Form 2021, if refund is from a NMF account, or Form 1331 (Notice of Adjustment), if the refund is from an abatement.

    3. Form 3818 with Form 3245 (Posting Voucher-Refund Cancellation or Repayment).

    4. SF 1081 (Voucher and Schedule of Withdrawals & Credits).

Master File (MF) Manual Refunds
  1. The MF manual refunds procedures are:

    1. Balance Form 813 (Document Register), Part 1, IMF and BMF, with applicable SF 1166 (Voucher and Schedule of Payments) or Secure Payment System (SPS).

    2. Compile line item information by area, items, principal, and interest for each SF 1166 or SPS, and list for input to the Net Tax Refund Report (NTRR).

    3. Enter SF 1166 or SPS data into RRACS. A record is created for each schedule number. The refund schedule number must be entered exactly as on the SF 1166 or SPS.

    4. Make entries to suspense account amount from the tape run on applicable Form 813.

Non Master File SF 1166/Secure Payment System
  1. Non Master File (NMF) refunds are issued from:

    1. Credit balances on NMF accounts

    2. Abatement schedules (Form 1331)

    3. Full paid returns

    4. Credits in general ledger accounts, such as account 6800 (Excess Collections), or account 4620 (Unidentified Remittances)

  2. When a refund comes from a NMF account, RACS prints the NMF recap report. Entries are made from SF 1166 (Voucher and Schedule of Payments) or SPS for proper appropriation account, and from source documents for proper NMF status account or general ledger account.

  3. RRACS journal entries are posted issuing data from SF 1166 (Voucher and Schedule of Payments) and the SPS report. The data used is the:

    1. Appropriation account

    2. NMF status account

    3. General ledger account

  4. For Forms 8697 (Interest Computation Under the Look-Back Method for Completed Long-Term Contracts), and Form 843 (Claim for Refund), the credit is established on an a NMF account. This credit is journalized from account 6560 (Other Credits Allowed).

Refunds From Miscellaneous Funds
  1. Refunds are issued from miscellaneous funds for:

    1. Treasury general fund

    2. Oil spill

    3. Anti-drug

    4. Informant rewards

  2. The SF 1166 (Voucher and Schedule of Payments) or SPS report indicates the miscellaneous fund used for the refund. RRACS journal entries are posted using data from SF 1166 and the SPS report. The data used is the:

    1. Appropriation account

    2. General ledger account

Refund of Deposit Funds
  1. Refunds from the deposit fund account 20X6879 cover:

    1. Rejected or withdrawn offers-in-compromise.

    2. Surplus proceeds from the sale of seized property.

    3. Deposits received with offers of prospective bidders incident to the sale of acquired property.

    4. Excess miscellaneous deposits.

Territorial Refunds (Military/Civilian Cover-Overs and Additional Child Tax Credit)
  1. When a territory issues refunds for credits to U.S. citizens residing in the U.S. territory, the U.S. government reimburses the territory for certain components of the refund.

  2. HQ CFO sends a letter certifying ACTC or Cover-Over payment and a copy of the IPAC to the Ogden campus. All supporting documentation is sent to the campus via secured email.

  3. Ogden issues the refund to Guam, Northern Mariana Islands, or American Samoa by same day FEDWIRE payment.

Refund Reversals

  1. The documents received for refund reversals are:

    1. SF 1098, Schedule of Cancelled or Undelivered Checks

    2. SF 1184, Accomplished Refund Cancellation Schedule

    3. SF 1185, Schedule of Unavailable Check Cancellation Credits

    4. SF 1081, Voucher and Schedule of Withdrawals and Credits

  2. The SF 1081 is received from the resources management division for relief of losses. A reclassification is necessary to increase receipts (Account 21XX) and decrease or credit refund appropriations (Account 2410, Refund Repay Principal).

SF 1098, Schedule of Cancelled or Undelivered Checks
  1. The SF 1098 may have an input document, Form 3245, or the form may indicate a tape was forwarded to ECC, and journalization is made to IMF or BMF. If Form 3245 (Posting Voucher-Refund Cancellation or Repayment) is received, Form 813 (Document Register), 2-part should be associated.

  2. Entries are made from SF 1098 for appropriation amount and from Form 813 (2-part) or tape for the suspense account.

  3. If the SF 1098 indicates tape was posted directly to Master File (MF), entries are made from SF 1098 only. A cycle number is required and it must agree with the cycle number on the RACR received from ECC.

SF 1184, Accomplished Refund Cancellation Schedule
  1. The SF 1184 is received with input documents, Form 3245 (Posting Voucher-Refund Cancellation or Repayment), and Form 813, Part 2. Form 813, Part 1, and Form 3245 is forwarded to batching for processing. Part 2 balances with SF 1184 amount. Input is made from SF 1184 and duplicate Form 813.

Miscellaneous Refund Check Cancellation
  1. Deposit fund refund checks that are canceled are posted from the SF 1098 (Schedule of Cancelled or Undelivered Checks) or SF 1184.

  2. General Fund, Off-Shore Oil Fund, and Anti-Drug Special Fund refund checks which are canceled are posted from the SF 1098 or SF 1184 and reclassified.

SF 1185, Schedule of Unavailable Check Cancellation Credits
  1. The SF 1185 (Schedule of Unavailable Check Cancellation Credits) may have an input document, Form 3245 (Posting Voucher-Refund Cancellation or Repayment), or the form may indicate a tape was forwarded to ECC, and journalization is made to IMF or BMF. If Form 3245 is received, Form 813 (Document Register), 2-part should be associated.

  2. A entry is made from SF 1185 for appropriation amount and from Form 813 (2-part) or tape for the suspense account.

  3. If SF 1185 indicates tape was posted directly to Master File (MF), entries are made from SF 1098 (Schedule of Cancelled or Undelivered Checks) only. A cycle number is required and it must agree with the cycle number on the Revenue Accounting Control Record (RACR) received from ECC.

SF 1081, Voucher and Schedule of Withdrawals and Credits
  1. The SF 1081 (Voucher and Schedule of Withdrawals and Credits) are reported as receipts and disbursements by Treasury.

  2. A credit is returned to the IRS budget clearing account via SF 1081, Voucher and Schedule of Withdrawals and Credits when:

    1. Systemic difficulties prevent the return of credits

    2. A refund check is outstanding

    3. Corrections to transmissions are necessary

    Note:

    The SF 1081 is accompanied by an SF 1081 listing which provides individual items by taxpayer identification number. Refund Inquiry, if appropriate, initiates a recertified check to the taxpayer in cases where the refund is not automatically issued from Master File (TC 846).

  3. Accounting logs any incoming SF 1081. Data that should be recorded in the log are:

    1. SF 1081 number

    2. Dollar amount

    3. Type of charge (debit or credit)

    4. Item count

    5. Received date

  4. Verify that:

    1. The ALC is accurate and the charge is intended for that submission processing campus.

    2. All taxpayer information is provided.

    3. All items are for tax refunds.

Intragovernmental Payment and Collections Disbursements/Receipts (IPACD/R)

  1. Payments and collections transferred to and from an ALC are generated by the IPAC system.

  2. IPAC/R (receipts) are:

    1. IRS campus receives payments from another agency.

    2. IRS campus sends collections to another agency.

  3. IPAC/D (disbursements) are:

    1. IRS campus receives collections from another agency.

    2. IRS campus sends payments to another agency.

  4. The receiver Treasury Account Symbol (TAS) on all IPACs must be verified before entering into RRACS. The rule is:

    1. If an agency sends a payment to IRS, the TAS/Business Event Type Code (BETC) should be 20F3885.11/COLLBCA in the receiver section.

    2. If an agency sends a collection to IRS, the TAS/BETC should be 20X0903/DISB in the receiver section.

  5. If IRS receives an IPAC with an incorrect TAS in the current accounting period, return the IPAC to the sender in the current accounting period.

  6. If IRS receives an IPAC with an incorrect TAS from a previous accounting period, make a change on the Treasury supplemental to move the funds to the correct TAS in the current accounting period.

Intragovernmental Payment and Collection Disbursements (IPACD) /Form 3813

  1. Form 3813 (Accomplished Refund Cancellation Schedule) is received with posting documents, Form 3245 (Posting Voucher-Refund Cancellation or Repayment), Form 813 (Document Register), Part 1 and the document is sent to batching for processing. After assuring Form 813 balances, entries are made. The confirmed date must be entered on Form 3813.

Disaster Tax Relief

  1. Disaster Tax Relief payments (Window 706, 707 or 708) use the following IRS and SGL accounts:

    1. IRS Accounts:

      IRS Accounts - Disaster Tax Relief IRS Account Name
      0059 Disaster Rel Tax Relief, Warrant
      0159 Disaster Related Tax Relief
      0259 Disaster Rel Tax Relief, Surp Warr
      0459 Disaster Tax Relief, Sequestration
      5665 HQ Expense, Disaster Tax Relief
    2. SGL Accounts:

      SGL Accounts - Disaster Tax Relief SGL Account Name
      4610000700 Allot-Real Resources PR
      4610000800 Allot-Real Resources VI
      4902000700 Del Orders Oblig Paid PR
      4902000800 Del Orders Oblig Paid VI

Refund Match Program and Net Tax Refund Report (NTRR) Line Data

  1. The success of the refund match program depends on the data match made between the Treasury Department Order (TDO) and the campus entry of each SF 1166 schedule number, month/year of the prepared date, and money amount. All schedule numbers must be entered exactly as they appear on the SPS schedule.

  2. The TDO payments are downloaded weekly and at the first of every month from CARS into a text file by the Custodial Systems and Analysis (CSA) analyst at headquarters. The text file data is uploaded into the RRACS database. The refund match program reads the TDO payment file and matches it against the refund records on RRACS.

  3. A automated batch journal is generated confirming when the refund match is complete.

  4. When a match occurs, the database refund records are updated with the Treasury confirmation date, and posts a confirmation journal automatically. After the confirmation journal posts, the refund records are applied to the following general ledger accounts and updated:

    1. 5100 (Disbursements, Principle)

    2. 5200 (Disbursements, Interest)

    3. 5301 (Disbursements, Miscellaneous User Fee)

    4. 5305 (Disbursements, OIC User Fee)

    5. 5400 (Disbursements, Miscellaneous Revenue)

    6. 5401 (Disbursements, PFIC (Ogden Only))

    7. 48XX.

    The NTRR line data is moved from the suspense field to the appropriate tax class line.

  5. If the Treasury record is a photocopy fee refund, a reclassification is posted and the following accounts are updated:

    1. Account 2340 - Photocopy Fees

    2. Account 2410 - Repayment Principal

  6. The following reports are created from the refund match program:

    1. Matched disbursement records - 124A

    2. Recirculating Treasury records - 124B

    3. Unmatched RACS disbursement records - 124C

    4. Refund match error records - 124D

  7. The refund match error report list refund and data records that need to be corrected and confirmed manually. Refund and data records that do not match a refund record and are not on the refund match error report are placed on a recirculating file.

  8. Every Service Center must check their NTRR for incorrect line data to ensure that MFT 46 is not input into line 99 versus 65. To correct this situation, the RRACS DBA must complete a 905 journal for a reclassification for MFT 46 refunds, except Arbitrage Only to move the funds from Line 99 to Line 65. This information can be found on the Form 3753 (Manual Refund Posting Voucher). Only one cumulative 905 reclass journal is completed for the combined months of October through December. This reclass journal must be completed prior to month end closing for December. Once this journal is complete, please email the journal number to the HQ CFO and the SP RRACS analysts. However, until further notice, this journal needs to be completed each month prior to month end closing. A Unified Work Request is scheduled to be implemented to correct this issue.

Statement of Difference - Disbursements

  1. The SOD automated reports are typically available around mid-month after a HQ CFO analyst uploads the data into RRACS. The report is used as a summary for any disbursement differences that exist.

  2. Once notified, generate the automated 0653, SPC Statement of Difference, Disbursements summary report.

  3. The CARS/RACS SOD is a comparison between CARS and RACS disbursements. The CARS/RACS SOD 0653 indicates disbursements discrepancies from each SPC by agency location code.

  4. Within three workdays after the 119 journal posts, the CARS/RACS SOD 0653 Report, the Deposit and Disbursement Reconciliation Reports, and the supporting documentation/reports are due to HQ CFO analyst. All reports that are used must also be sent, specifically the RACS 031 (Confirmed Disbursements Report), CARS Collection Support Listing, the CARS TDO Payments, and the IPAC Support Listing. The technician emails the report and any required back up documentation to the HQ CFO mailbox at &CFO:FM:CFM CA Custodial Systems and Analysis, and the CFO mailbox at *CFO RFM IRACS, and to the Submission Processing HQ analyst for your campus, WI.SP.RRACS@irs.gov. The SOD worksheets must be available when requested from HQ CFO.

  5. Use the following sources for the information required on the CARS/RACS SOD Reconciliation Report:

    1. Month – Audit Month on the 0653 Report

    2. RACS 031 (Confirmed Disbursement Report) – Total Payments

    3. Disbursement Discrepancy – Difference between RACS 031, IPAC Support Listing, and TDO Payments. The detail of the discrepancy must be presented on the Disbursement Reconciliation report.

  6. The technician completes the information required on the Disbursement Reconciliation Report using the following information:

    1. Date Received in RACS Unit - Received stamp date on DT/DV

    2. Treasury Amount - IPACS Support Listing and TDO Payments

    3. IRS Amount - RACS 031 (Confirmed Disbursement Report)

  7. The Disbursement Reconciliation Report requires the following signatures:

    1. Preparer

    2. Reviewer

    3. Certifying Officer (Accounting Department Manager)

    Hard copy signatures should be kept on file at the campus. A typed version of the reconciliation report including the preparer, reviewer, and the certifying officer signatures should be emailed to a HQ CFO analyst.

  8. The automated 653 summary report requires the following signatures:

    • Initial reviewer signature

    • Second reviewer signature

    • Final reviewer signature

    Note:

    These signatures can be from the same individuals signing the reconciliation report

    .

Reconciliation of Disbursement Differences
  1. The RACS 0653, SPC SOD, Disbursements Report incorporates totals from the IPAC Support Listing, TDO Payment, and RACS 031 reports. The reports used for disbursements are:

    1. Download from CARS, the IPAC Support Listing and TDO Payments.

    2. Download from RACS and the RACS 031 (Confirmed Disbursement Report).

    The TDO Payments and IPAC Support Listing show all disbursements submitted through the Fiscal Service. The RACS 031 report shows all disbursements journalized into the RRACS system for the accounting period. The comparison between the CARS and RACS reports shows the difference between SP totals and the totals submitted through the Fiscal Service, if any.

  2. During the balancing process, the CARS/RACS SOD Summary Report compares the CARS Collection summary with the RACS summary during routine processing with the disbursement information processed by the Fiscal Service monthly.

  3. SOD is received monthly until differences are reconciled.

  4. All differences must be corrected. If RRACS input is correct, contact the financial institution or the Fiscal Service for correction. If RRACS input is incorrect, the correction must be made in RRACS.

  5. Sources for finding the prepare date and confirm date for the disbursement reconciliation report date columns are:

    Note:

    The confirmed and prepared dates in the table below determine the input date into RRACS.

    Source document Confirm date listed as Prepare date listed as
    On the TFS 1185 Date of certification N/A
    Summary Tape Schedule Requested payment date N/A
    Refund Schedules N/A Prepare date
    TDO Payments Confirm date N/A
    IMF and BMF NTRR Recap Confirm date Prepare date
    Confirm disbursement report Confirm date Prepare date
  6. Any disbursements listed on the 0653 require the corresponding refund schedule and supporting documentation are emailed to the HQ CFO analyst.

  7. Disbursements with aging confirm/create dates are at risk for adverse 90-day aging scorecard ratings and should be researched and resolved.

  8. Discrepancies are reported on the Disbursement Reconciliation Report. The reviewer (DBA or higher level personnel) should review the reports for accuracy and supporting backup documentation before signing or submitting the SOD to HQ CFO office. The reconciliation report is verified by comparing it to the 0653, 031, IPAC and TDO reports prior to submitting to HQ CFO.

Custodial Accounting

  1. Custodial accounting responsibilities coincide with areas of administrative jurisdiction and legal accountability for each campus. The campus maintains double-entry general ledger accounts covering varied revenue transactions, and provides consolidated recording of assessments, collections, receivables, refunds, over-assessments and other Custodial accounting elements.

  2. Taxpayer accounts installation of the Master File (MF) system necessitates the maintenance of two categories of taxpayer accounts for the types of tax liabilities and period, as prescribed in returns processing procedures.

    1. MF and CADE accounts: taxpayer accounts established and entered into the MF records.

    2. NMF accounts: taxpayer accounts which have not been prescribed for entry into the MF records, but are processed at the campus.

  3. Reports include required data for each field office and campus. Each general ledger account is numerically identified by a four-digit code. This code number is used when referencing a general ledger account, both in procedural instructions and on reports or other forms. A complete listing of the accounts prescribed for maintenance in the general ledger is contained in the chart of accounts.

  4. The campus reporting requirements are:

    1. Financial reports are prepared or processed periodically by the campuses and furnished to HQ and Fiscal Service for use in publishing consolidated reports and evaluating operations. The data for these reports is obtained from the general ledger account information, computer-generated, or manual output relative to taxpayer accounts.

    2. These reports provide HQ with information pertinent to the budget justification and with required volume statistics covering the various operational areas. For additional information, see IRM 3.17.41, Accounting and Operating Reports.

  5. Internal control management has the responsibility for providing a system of financial control including elements of internal accounting control necessary to assure compliance with all administrative and legal requirements.

Ledger Classification

  1. Ledger classification is 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 types of input documents.

  2. If a transaction fails any validation test, a message is displayed on the transaction screen in an information box. The message may indicate the transaction failed or the appropriate corrective information to take. Data that passes all validation tests updates RRACS.

  3. Each transaction received by the windows or batch is assigned automatically a journal number that is displayed on the window. The terminal operator uses the journal number to cross reference the input documents with the transaction.

Document Preparation

  1. Document preparation procedures must be performed prior to input on the RRACS terminals. For certain windows, a volume of source documents is used for a single input. On other windows, two or more source documents must balance against each other. A number of the windows are input directly from the source documents.

  2. Form 8166 (Input Reconciliation Sheet) was developed for:

    1. Consolidating volume source documents for a single input.

    2. Reconciling source documents when a combination of documents are used as input.

  3. Follow these procedures for using Form 8166:

    1. Assign a number to the Form 8166.

    2. Maintain log books for the numbers.

    3. Use the reconciliation sheet number as the doc ID when a window specifies Form 8166.

    4. Use Form 8167 (Supplemental Input Reconciliation Sheet) as a continuation sheet to Form 8166 when more space is necessary. Use the same date and number on the Form 8167.

  4. When the database posting is complete, the RRACS input terminals display the journal numbers for each transaction. These journal numbers are used to cross-reference documents.

  5. If a reconciliation sheet is used, the journal number(s) are recorded on the reconciliation sheet. The reconciliation sheet number may also be used to cross-reference to the source documents to expedite processing, as long as the Form 8166 is stamped with the journal number after input to RRACS.

  6. There is a maximum of 75 source journals per posting number. This includes the reclassification and application posting necessary for a complete journal.

Redesigned Revenue Accounting Control System Database

  1. Each accounting transaction is recorded in the database to the proper general ledger account. A double-entry accounting system is used to record both the debit and credit sides of the transactions. A journal number is assigned to each transaction. This journal number is used by the terminal operator to cross-reference the input documents with the transaction.

  2. The journal control number is 13 digits signifying a unique transaction. The first three digits identify the RRACS main menu and sub-menu selections, the next six digits are the current date, and the last four signify the sequence for that window series.

  3. The RRACS database is comprised of a variety of records that summarize the total debit and credit amounts by account numbers. Items for both debits and credits are summarized by the disbursement and assessment accounts only.

  4. Each update to the database is by journal entry. Journal entries and online reports are assigned a journal number. In case of an error in a journal entry or online report, the capabilities exist to reverse the entire entry by a reversal journal. Information available includes:

    1. Activity detail - contains information regarding prepared date, confirmed date and assessed date of various source journals

    2. Source journal - contains transaction number and batch date for a document that is posted to the database

    3. Journal entry - contains amount and item count information

  5. Components of the RRACS database:

    1. ALC - Identifies campus

    2. State and U.S. territories - Contains a list of state and U.S. territories for the Fiscal Service and the Commissioner's Annual Report

    3. Default date regular - Monday assessment date

    4. Responsible Official - List of campus directors for losses and shortages

    5. Account Period - List of account periods that is updated annually

    6. Financial institutions

    7. Research detail - Additional information stored when incoming CIR data do not match with RRACS deposit record (for research purposes)

    8. D-Transaction failure - Contains reason why a batch run failed

    9. Ledger classification - Contains descriptive information about documents and money

    10. Line class - A list of refund and recap line numbers

    11. Tax class - A list of tax classes

    12. Source journal type - Describes the type of document posted on the RRACS database

    13. IRS Accounts - List of IRS and Treasury account numbers

    14. Ledger Entry - Indicates whether a journal entry is a debit or credit

    15. Appropriation symbol - A list of Treasury appropriation symbols on the RACS 020, 020A and 020B, Statement of Transaction reports

    16. Originating source - Information regarding the origin of deposit

RRACS Processing Accounting Applications

  1. The accounting application window records the transfer of debits/credits between various general ledger accounts and between campuses.

RRACS Inventory Accounts

  1. RRACS must never contain any taxpayer information. Do not use taxpayer ID numbers or any other identifying information for doc ID case numbers.

  2. For all inventory accounts, never use a DBA reversal window to reverse an action or a modification window to correct an open case. First close the case, then reopen the case.

  3. Maintain a history sheet to document actions for all inventory accounts that are open over 30 days.

Extended Hours at Enterprise Computing Center - Martinsburg (ECC-MTB)

  1. Campuses are responsible for opening a KISAM ticket whenever they need extended hours on RRACS. The ticket should be assigned to ECC-MTB Scheduling. Let them know the RRACS applications and DB2 database is required to be available on a certain day, and during what hours, (for example: Tuesday, April 15, 20XX, from 8:00 a.m. through April 16, 20XX, 2:30 a.m. EST (18.5 total hours)). If the request is for extended hours going beyond 12:00 midnight, contact the RRACS IT group so they can delay overnight batch processing. Email the NHQ RRACS group and the RRACS IT group when an KISAM ticket is opened (include all details, such as date, extended hours, ticket number).

Input Windows and Journal Numbers

  1. RRACS utilizes separate windows to input transactions:

    1. This is list of batch journal window numbers:

      WINDOW NUMBER BATCH JOURNAL TYPE
      100 GUF
      101 SCCF Adjustment Reclass
      102 GMF
      103 IMF NTRR
      104 BMF NTRR
      105 DMF NTRR
      107 IMF Recap - Semi-Annual
      108 BMF Recap
      110 EFTPS Deposit
      111 EFTPS Debit Voucher
      112 EFTPS Reclass
      113 EFTPS TEP
      114 FPLP Reclass DT/DV
      115 GOALS Confirmed Refund
      117 PNC Confirmed Deposit
      119 GOALS Reconciled Deposit
      120 Private Debt Collection (PDC)
      133 Regular Assessment
      134 Prompt Assessment
      135 Quick Assessment
      136 Jeopardy Assessment
      137 IMF Abatement
      138 BMF Abatement
      140 IDRS End of Day (EOD)
      141 ANMF SC RECAP - Other
      142 ANMF SC RECAP - Assessment
      162 CADE 2 Recap
      171 ID Theft - Daily
      172 Return Preparer Misconduct - Daily
      173 Return Preparer Misconduct Write Off - Monthly
      187 CMSFILE
      199 Year-End Processing
    2. This is a list of manual input window numbers:

      WINDOW NUMBER MANUAL INPUT TYPE
      210 Deposit
      211 Confirm Deposit
      220 Debit Voucher
      221 Debit Voucher Adjustment
      236 JV Increase 20F3880
      239 JV Decrease 20F3880
      302 Acquisition
      303 Disposition/Loss
      304 Disposition/Profit
      305 Disposition/Non Sale
      306 Loss Embezzlement & Theft
      307 Loss Unexplained Loss
      308 Loss Deposit Discrepancy
      309 Recover Embezzle & Theft
      310 Recover unexplained Loss
      311 Recover Deposit Discrepancy
      312 Apply to OIC
      313 Apply to Seizure
      314 Apply to Miscellaneous
      315 Apply from OIC
      316 Apply from Seizure
      317 Apply from Miscellaneous
      320 Seized Property Open
      321 Seized Property Close
      322 Seized Property Open & Close
      323 Collateral Open
      324 Collateral Close
      325 Collateral Open and Close
      330 Open Non-Equity Collateral
      335 Close Non-Equity Collateral
      340 Open Non-Equity Seizure
      345 Closed Non-Equity Seizure
      400 Accounting Application
      401 Cover Over Liability
      402 Miscellaneous Application
      404 URF/Miscellaneous
      405 PFIC Application
      406 URF/Deposit Fund
      407 URF/Miscellaneous Fee
      408 URF/Refund Repay
      409 URF/Loss
      411 DCF/SCCF
      412 DCF/Miscellaneous Fee
      413 DCF/Deposit Fund
      414 DCF/Loss
      415 DCF/Anti-Drug
      417 EFTPS GMF/TEP - BMF
      418 EFTPS GMF/TEP - IMF
      421 ECC GMF/TEP - BMF
      422 ECC GMF/TEP - IMF
      424 ECC Deletes - BMF
      425 ECC Deletes - IMF
      427 ECC Unpostable - BMF
      428 ECC Unpostable - IMF
      435 Credit Transfer-Out Revenue Receipt CR Doc
      436 Credit Transfer-Out Revenue Receipt DR Doc
      437 Credit Transfer-Out Deposit Fund CR Doc
      438 Credit Transfer-Out Deposit Fund DR Doc
      441 Credit Transfer-In Revenue Receipt CR Doc
      442 Credit Transfer-In Revenue Receipt DR Doc
      443 Credit Transfer-In Deposit Fund CR Doc
      444 Credit Transfer-In Deposit Fund DR Doc
      446 Confirm Credit Trans-Out Rev Receipt CR Doc
      447 Confirm Credit Trans-Out Rev Receipt DR Doc
      448 Confirm Credit Trans-Out Deposit Fund CR Doc
      449 Confirm Credit Trans-Out Deposit Fund DR Doc
      458 Account Transfer-Out - Debit
      459 Account Transfer-Out - Credit
      460 Account Transfer-In - Debit
      461 Account Transfer-In - Credit
      465 Confirm Account Transfer-Out - Debit
      466 Confirm Account Transfer-Out - Credit
      469 IPACR Applications
      470 TRACS Payment-Over Cancellation (CR 4970)
      471 CADE 2
      480 Erroneous Refund - Court Case
      481 Erroneous Refund - Non-Court Case
      485 Non-Payment of Erroneous Refund
      490 Clear Erroneous Refund
      495 Informant Rewards
      496 Informant Rewards, Offset
      498 Insolvency Recovery
      499 Revenue clearance TRF
      501 Miscellaneous Refund
      502 PFIC Refund
      503 Excess Refund
      504 Unidentified Refund
      505 Photocopy Refund
      506 CADE to ECC Refund
      507 NMF Refund
      508 Deposit Fund Refund
      509 Anti-Drug Refund
      510 Miscellaneous Revenue Refund
      512 ECC Refund - BMF
      513 ECC Refund - IMF/CADE
      514 Oil Spill Refund
      515 Informant Reward, Refund
      517 User Fee, Refund
      518 Confirm ECC Refund - CADE
      519 Informant Reward, Confirmation
      520 Confirm Miscellaneous Refund
      521 Confirm ECC Refund - BMF
      522 Confirm ECC Refund - IMF
      523 Confirm Excess Refund
      524 Confirm Unidentified Refund
      525 Confirm Photocopy Refund
      526 Confirm NMF Refund
      527 Confirm Deposit Fund Refund
      528 Confirm Anti-Drug Refund
      529 Confirm miscellaneous Revenue Refund
      530 Confirm Oil Spill Refund
      531 Confirm Passive Foreign Investment Company
      532 Manual Cancellation
      533 Deposit Fund Cancellation
      534 ECC Cancellation - BMF
      535 ECC Cancellation - IMF
      536 Photocopy Cancellation
      537 Anti-Drug Cancellation
      538 Informant Cancellation
      539 Miscellaneous Revenue Cancellation
      540 Oil Spill Cancellation
      541 IPAC Receipt
      542 TRACS IPACD
      543 User Fee Cancellation
      544 Arbitrage Cancellation
      546 CADE Cancellations
      547 IPACD Miscellaneous Disbursement
      548 Cover Over Cancellations
      549 IPACD Deposit Fund Disbursement
      553 IPACD Miscellaneous Revenue Disbursements
      555 IPACD Photocopy Disbursement
      557 IPACD Anti-Drug disbursement
      559 IPACD DMF Offset Disbursement
      560 IPACD Oil Spill Disbursement
      570 Confirmation Carry Over Refund
      580 IPACR FPLP
      585 IPACD FPLP
      590 Confirmation Arbitrage Refund
      591 Confirmation User Fee
      610 Assessment Regular Current With (TC 1)
      611 Assessment Regular Current Ind Inc (TC 2)
      612 Assessment Regular Current Corp (TC 3)
      613 Assessment Regular Current Excise (TC 4)
      614 Assessment Reg Current Estate & Gift (TC 5)
      615 Assessment Regular Current CTA (TC 7)
      616 Assessment Regular Current FUTA (TC 8)
      620 Assessment Regular Deficiency With (TC 1)
      621 Assessment Regular Deficiency Ind Inc (TC 2)
      622 Assessment Regular Deficiency Corp (TC 3)
      623 Assessment Regular Deficiency Excise (TC 4)
      624 Assessment Reg Deficiency Estate & Gift (TC 5)
      625 Assessment Regular Deficiency CTA (TC 7)
      626 Assessment Regular Deficiency FUTA (TC 8)
      630 Assessment Quick Current Withholding (TC 1)
      631 Assessment Quick Current Ind Inc (TC 2)
      632 Assessment Quick Current Corp (TC 3)
      633 Assessment Quick Current Excise (TC 4)
      634 Assessment Quick Current Estate & Gift (TC 5)
      635 Assessment Quick Current CTA (TC 7)
      636 Assessment Quick Current FUTA (TC 8)
      640 Assessment Quick Deficiency With (TC 1)
      641 Assessment Quick Deficiency Ind Inc (TC 2)
      642 Assessment quick Deficiency Corp (TC 3)
      643 Assessment Quick Deficiency Excise (TC 4)
      644 Assessment Quick Deficiency Estate & Gift (TC 5)
      645 Assessment Quick Deficiency CTA (TC 7)
      646 Assessment Quick Deficiency FUTA (TC 8)
      650 Assessment Prompt Current With (TC 1)
      651 Assessment Prompt Current Ind Inc (TC 2)
      652 Assessment Prompt Current Corp (TC 3)
      653 Assessment Prompt Current Excise (TC 4)
      654 Assessment Prompt Current Estate & Gift (TC 5)
      655 Assessment Prompt Current CTA (TC 7)
      656 Assessment Prompt Current FUTA (TC 8)
      660 Assessment Prompt Deficiency With (TC 1)
      661 Assessment Prompt Deficiency Ind Inc (TC 2)
      662 Assessment Prompt Deficiency Corp (TC 3)
      663 Assessment Prompt Deficiency Excise (TC 4)
      664 Assessment Prompt Def Estate & Gift (TC 5)
      665 Assessment Prompt Deficiency CTA (TC 7)
      666 Assessment Prompt Deficiency FUTA (TC 8)
      670 Assessment Jeopardy Current With (TC 1)
      671 Assessment Jeopardy Current Ind Inc (TC 2)
      672 Assessment Jeopardy Current Corp (TC 3)
      673 Assessment Jeopardy Current Excise (TC 4)
      674 Assessment Jeopardy Current Estate & Gift (TC 5)
      675 Assessment Jeopardy Current CTA (TC 7)
      676 Assessment Jeopardy Current FUTA (TC 8)
      680 Assessment Jeopardy Deficiency With (TC 1)
      681 Assessment Jeopardy Deficiency Ind Inc (TC 2)
      682 Assessment Jeopardy Deficiency Corp (TC 3)
      683 Assessment Jeopardy Deficiency Excise (TC 4)
      684 Assessment Jeopardy Def Estate & Gift (TC 5)
      685 Assessment Jeopardy Deficiency CTA (TC 7)
      686 Assessment Jeopardy Deficiency FUTA (TC 8)
      690 Non-Tax Assessment
      691 Abatement
      692 Erroneous Abatement
      695 Non-Tax Abatement
      702 Premium Tax Credit
      703 Sequestration
      706 Disaster Relief Warrant
      707 Disaster Relief Surp Warr
      708 Disaster Relief Trans
      710 FTD Day Batch
      711 FTD Subsequent
      712 FTD CRL
      713 FTD Tapes to ECC
      714 FTD MUCR
      715 FTD To Unidentified
      721 FTD CRL Debit
      740 Confirm FTD Deposit
      741 Confirm FTD Debit Voucher
      750 FTD Reclass
      810 Man Assess Regular Current With (TC 1)
      811 Man Assessment Regular Current Ind Inc (TC 2)
      812 Man Assess Regular Current Corp (TC 3)
      813 Man Assess Regular Current Excise (TC 4)
      814 Man Assess Reg Current Estate & Gift (TC 5)
      815 Man Assess Regular Current CTA (TC 7)
      816 Man Assess Regular Current FUTA (TC 8)
      820 Man Assess Regular Deficiency With (TC 1)
      821 Man Assess Regular Deficiency Ind Inc (TC 2)
      822 Man Assess Regular Deficiency Corp (TC 3)
      823 Man Assess Regular Deficiency Excise (TC 4)
      824 Man Assess Reg Deficiency Estate & Gift (TC 5)
      825 Man Assess Regular Deficiency CTA (TC 7)
      826 Man Assess Regular Deficiency FUTA (TC 8)
      830 Man Assess Quick Current With (TC 1)
      831 Man Assess Quick Current Ind Inc (TC 2)
      832 Man Assess Quick Current Corp (TC 3)
      833 Man Assess Quick Current Excise (TC 4)
      834 Man Assess Quick Current Estate & Gift (TC 5)
      835 Man Assess Quick Current CTA (TC 7)
      836 Man Assess Quick Current FUTA (TC 8)
      840 Man Assess Quick Deficiency With (TC 1)
      841 Man Assess Quick Deficiency Ind Inc (TC 2)
      842 Man Assess Quick Deficiency Corp (TC 3)
      843 Man Assess Quick Deficiency Excise (TC 4)
      844 Man Assess Quick Def Estate & Gift (TC 5)
      845 Man Assess Quick Deficiency CTA (TC 7)
      846 Man Assess Quick Deficiency FUTA (TC 8)
      850 Man Assess Prompt Current With (TC 1)
      851 Man Assess Prompt Current Ind Inc (TC 2)
      852 Man Assess Prompt Current Corp (TC 3)
      853 Man Assess Prompt Current Excise (TC 4)
      854 Man Assess Prompt Current Estate & Gift (TC 5)
      855 Man Assess Prompt Current CTA (TC 7)
      856 Man Assess Prompt Current FUTA (TC 8)
      860 Man Assess Prompt Deficiency With (TC 1)
      861 Man Assess Prompt Deficiency Ind Inc (TC 2)
      862 Man Assess Prompt Deficiency Corp (TC 3)
      863 Man Assess Prompt Deficiency Excise (TC 4)
      864 Man Assess Prompt Def Estate & Gift (TC 5)
      865 Man Assess Prompt Deficiency CTA (TC 7)
      866 Man Assess Prompt Deficiency FUTA (TC 8)
      870 Man Assess Jeopardy Current With (TC 1)
      871 Man Assess Jeopardy Current Ind Inc (TC 2)
      872 Man Assess Jeopardy Current Corp (TC 3)
      873 Man Assess Jeopardy Current Excise (TC 4)
      874 Man Assess Jeopardy Current Estate & Gift (TC 5)
      875 Man Assess Jeopardy Current CTA (TC 7)
      876 Man Assess Jeopardy Current FUTA (TC 8)
      880 Man Assess Jeopardy Deficiency With (TC 1)
      881 Man Assess Jeopardy Deficiency Ind Inc (TC 2)
      882 Man Assess Jeopardy Deficiency Corp (TC 3)
      883 Man Assess Jeopardy Deficiency Excise (TC 4)
      884 Man Assess Jeopardy Def Estate & Gift (TC 5)
      885 Man Assess Jeopardy Deficiency CTA (TC 7)
      886 Man Assess Jeopardy Deficiency FUTA (TC 8)
      DBA ONLY  
      902 Modify
      903 Reverse
      904 Reverse Assessment
      905 Adjust NTRR Line Data
      906 Undeposited Collection
      907 Deposit
      908 Reconcile (deletes from 035C DT/DV unmatched RACS record)
      909 Reconcile (deletes from 035B DT/DV unmatched treasury record)
      910 Needs authorization from CFO before using. Allows the adjustment of money between tax classes and/or SCCF.

Error Codes and Conditions

  1. Error codes are displayed on the window when an attempt is made to post a transaction which contains an error, such as duplicates or journal control already exists. The system also has a window display that explains the error code.

  2. This chart provides a list of RRACS error codes and conditions:

    ERROR CODE CONDITION
    * Duplicate was found but has been accepted anyway.
    AG Update amount is greater than the outstanding amount.
    AM Individual amounts do not match.
    AT Total amount does not match on document found.
    CA Already confirmed.
    CD Confirm date is earlier than prep date.
    DN A duplicate was found and is not allowed.
    DY Duplicate was found but has been accepted anyway.
    MF Journal control already exists.
    NA No document was found to update.
    NF Document was not found.
    OA Case is already open.

Correcting Journal Entry Errors

  1. When a journal entry error is identified, a supervisor’s authorization is required for a correcting entry to be posted to the general ledger account.

  2. The supervisor’s written authorization and supporting documentation must be retained in the manager’s files.

  3. After receiving approval, the DBA reverses the incorrect journal.

  4. The reversal journal must include the following information in the message section:

    1. The original journal number

    2. An explanation

  5. The technician who made the original incorrect entry should also be the person who enters the correcting entry (whenever possible).

  6. The correcting journal entry must include the following information in the message section:

    1. The original journal entry number

    2. The reversal journal entry number

    3. An explanation

  7. The technician also makes a pen and ink notation next to the original journal entry number on the Daily 001 Posting Summary Report. This notation includes:

    1. The reversal journal entry number

    2. The correcting journal entry number

  8. The RACS manager maintains an audit trail log which includes:

    1. All correction requests

    2. Modification of the doc ID

    3. Reversal journal entry numbers

    4. Deletions

    5. Reconcile - deletes from 035C DT/DV unmatched RACS record

    6. Reconcile - deletes from 035B DT/DV unmatched treasury record

Section 508 Compliance

  1. Section 508 compliance states that when federal agencies develop, procure, maintain or use Electronic and Information Technology (EIT), federal employees with disabilities shall have access to and use of information and data that is comparable to the access and use by federal employees who are not individuals with disabilities, unless compliance would impose an undue burden on the agency.

  2. The RRACS system uses several adaptive software tools including:

    1. Dragon Naturally Speaking

    2. Job Access for Windows and Speech

    3. Zoom Text

  3. The following RRACS menus and associated windows are 508 compliant:

    1. Reconcile deposit records

    2. Reverse journal control

    3. Maintain online report printing

    4. Maintain report printing

    5. Create RRACS batch reports

    6. Balance research main menu

    7. Journal research main menu

    8. Display trial balance

    9. Display journal control

Reports

  1. Reports are produced automatically from RRACS. These reports are pre-formatted in the system and generated upon command from the reports main menu except where noted.

Print Commands

  1. When a report is generated through the reports main menu assessment icons, it can be reprinted by using the print option on the reports main menu. Select batch to reprint any EOD, EOM, assessment certificates and abatement report. A maximum of 39 online reports are listed.

  2. To print the daily trial balance from the trial balance window:

    1. Input the appropriate account period (the default account period is pre-selected).

    2. Select print from the action bar.

  3. To print journal research:

    1. Display the needed source journal or journal control number.

    2. Select print from the action bar.

Disaster Recovery Contingency Plan

  1. The development RRACS IT group determines the length of time to recover the RRACS system. Notify the appropriate operation manager of the situation with estimated time to recovery. Maintain open communications with the computer room, management staff and all affected areas, as appropriate. The disabled campus contacts the area offices to advise where assessments should be processed.

Short Term Strategy

  1. If RRACS is unavailable during month end, contact HQ immediately. HQ has the capability to obtain EOM reports and email them to a campus.

  2. If RRACS is unavailable, prepare the following documents using a local area network computer. If the local area network is unavailable, prepare a manual document:

    1. Form 8166 (Input Reconciliation Sheet) for all accounting packages and assessments.

    2. Form 23C (Summary Record of Assessment/Assessment Certificate) for daily/weekly assessments.

  3. After RRACS is available:

    1. Input information from Form 8166 (Input Reconciliation Sheet).

    2. Input Form 23C information. If the manual Form 23C contains an error, make corrections, and stamp journal number on Form 8166 and/or the NMF assessment recap.

  4. RRACS DBA duties if the system comes up within 24 hours include:

    1. Determine the extent of the problem.

    2. Identify any partial transactions and take the necessary steps to recover them.

    3. Run End of Day (EOD) and compare to first Daily Trial Balance (DTrial) to ensure that the database is in balance.

    4. If all accounts are in balance, proceed with processing.

    5. If there is an imbalance, isolate and correct the error and proceed with processing.

    6. If the error cannot be found, have the tape from the last good EOD reloaded.

    7. Run a DTrial and compare to the previous day's DTrial to ensure correctness.

    8. If there is a good list from EOD, the work can be input in the same order as it was input earlier and the audit trail is retained.

    9. If a partial shutdown occurs during EOD, each report can be pulled separately and a determination can be made where the shutdown occurred. Call HQ for guidance from a computer program analyst.

Server Disruption Contingency Plan

  1. For occasions where the campus server goes down, follow these procedures:

    1. Immediately submit a KISAM ticket.

      Note:

      You must indicate on the ticket that IT needs to contact the HQ RACS unit on the status of the disruption.

    2. Contact the HQ RACS unit immediately after submitting the ticket.

  2. After 36 hours of downtime, management implements the appropriate contingency plan.

Scorecard Contingency Plan

  1. In the event that the campus is closed (e.g. disaster, inclement weather, power outage) at the end of the month (second business day), implement the following procedures:

    1. The department manager or their designee will email the HQ RACS mailbox and copy (cc) the SP HQ mailbox immediately, but no later than 8:00 am local time

      • HQ RACS - CFO RFM IRACS or *cfo.rfm.iracs@irs.gov, and Custodial Systems & Analysis, &CFO:FM:CFM CA Custodial Systems and Analysis

      • HQ SP - &W&I SP:RRACS, WI.SP.RRACS@irs.gov

    2. HQ RACS management implements the appropriate contingency plan, (for example an extension for the affected submission processing center(s)(SPC).

    3. Upon reopening of the SPC, any scorecard deliverables (SF 224, 20F3502, 30F3885, 7001/7009) must be submitted by their normal deadlines.

      Note:

      These procedures do not apply to delayed openings. If the SPC has a delayed opening due to weather, follow normal procedures to request an extension.

    4. Follow normal procedures to request an extension for any other reports, if necessary.

    5. HQ RACS determines scorecard ratings on a case-by-case basis.

  2. In the event that the campus is closed (e.g. disaster, inclement weather, power outage) on any other business day, implement the following procedures:

    1. The department manager or their designee must email the HQ RACS mailbox, cfo.rfm.iracs@irs.gov, and Custodial Systems and Analysis, &CFO:FM:CFM CA Custodial Systems and Analysis and copy (cc) the SP HQ mailbox, WI.SP.RRACS@irs.gov immediately but no later than 8:00 a.m. local time.

    2. HQ RACS management implements the appropriate contingency plan, for example, extension for the affected SPC.

    3. Upon reopening of the SPC, any scorecard deliverables must be submitted as soon as possible.

      Note:

      These procedures do not apply to delayed openings. If the SPC has a delayed opening due to weather, follow normal procedures to request an extension

      .

    4. HQ RACS determines scorecard ratings on a case-by-case basis.

Database Administrator (DBA), and Alternate DBA Functions

  1. Each site appoints a DBA and also appoints an alternate DBA. The DBA and no more than two alternate DBAs shall have access to the RACS DBA main menu. The alternate DBAs must be thoroughly proficient with the contents of this IRM. The RACS unit manager must sign certification that the alternate has completed the above requirements, and that she/he assumes responsibility for the alternate DBAs actions. Only the DBA and/or alternate DBA shall have access to the RACS database main menu.

  2. The DBA should have a thorough knowledge of double-entry accounting principles and theory, as employed in the IRS accounting control systems.

  3. The DBA is assigned a password to allow access to the DBA menu. These windows allow modification of a variety of database information.

  4. Extreme caution must be exercised when changes are made to the database. The responsibilities of the DBA include, but are not limited to:

    1. Correcting the records that contain errors in identification and status.

    2. Ensuring that the balance and the integrity of the database are maintained at all times.

    3. Ensuring that default account period and default assessment date are properly set.

    4. Ensuring that all daily and weekly tapes are processed timely, and prior to month end closing procedures.

  5. In addition to the above responsibilities, other duties that the DBA performs include:

    1. Classifying an extensive variety of site accounting transactions by analyzing batched or individual documents, and verifying the accuracy and completeness of accounting data.

    2. Maintaining accounts by analyzing error messages displayed on the terminal and initiating the necessary corrective action, reviewing and analyzing the daily posting register to ensure that all IRS double-entry accrual accounting transactions have been properly posted, and initiating necessary redundant corrective action.

    3. Analyzing accounts by reviewing and balancing the RACS computer-generated accounting reports to ensure that reports cross balance, and that all general ledger and subsidiary files agree with reported information.

    4. Participating in the reconciliation of the general ledger accounts with external subsidiary records in other units of the branch, balancing principal and interest with appropriate general ledger accounts, and reconciling both accounts with the appropriate accounting reports.

    5. Maintaining various logs for electronic data processing and database corrections.

    6. Monitoring all electronic data input to and output from RRACS and making all necessary reversals.

    7. Establishing checklists for end of day (EOD), end of month (EOM), and the new month.

    8. Reviewing the following database lists for invalid entries, minus records and initiating corrective action when necessary: field office records, loss and recovery records, individual detail records,; confirmed DT/DVs, unconfirmed DT/DVs, federal tax deposits (FTD) DT/DVs and FTD daily wire records.

    9. Protecting passwords if one is compromised, contact the Fiscal Service immediately to have it changed. When an employee leaves, or is no longer assigned responsibility, a new password should also be requested from the Fiscal Service.

    10. Reviewing all reports and making sure DT/DV list equals receipt column total on the RACS 020 (Statement of Transactions), that the audit trail on Form 2162 (Summary of Assessment Certificates Issued) includes all manual assessments, and that NTRR balances to general ledger accounts 5100 (Disbursements, Principle), 5200 (Disbursements, Interest), 2410 (Refund Repay Principal) and 2420 (Refund Repay Interest).

    11. Making sure all accounts are in correct status in preparation for EOM processing, and monitoring accounts to be maintained in zero balance.

    12. Reviewing the unpulled assessments on daily basis.

Database Administrator (DBA) Main Menu

  1. There are five options available to the DBA for maintaining the RRACS database static tables. The DBA options allow changes in accounting period, assessment date or accountable officer.

    1. DBA modify sub-menu. This menu allows modification to certain records that have posted to the RRACS general ledger accounts, but contain errors in identification and status. As a general rule, maintain source journal data can be modified, however, ledger classification or dollar amount cannot be modified. Erroneous ledger classification or dollar amount data require a reversal journal action. All modifications begin with journal number series 902 and must be approved by management official. Modifications are not allowed to Collections Information Repository or for batch activities.

      1. Each modification is limited to one correction at a time. If multiple errors occur on one journal, one correction at a time must be performed. Prepare date must be the last item modified for multiple corrections.

      2. If modification is done incorrectly, a correction modification must be made to the original journal. They system does not allow modifications to 902 journal series.

      3. Disregard any alpha characters on high or low check numbers, only numeric input is allowed.

    2. DBA reversal sub-menu. This menu is used to reverse a journal entry which has posted in error to the general ledger accounts. A reversal journal action reverses all erroneous postings to all accounts posted in error by the original journal entry. All reversal journal number series begin with 903 or 904.

      1. Reversal journals must be approved by a management official.

      2. To ensure an adequate audit trail, notate the original journal number in the message text on the reversal journal. Include the original number in the message section of the re-input journal.

      3. When reversing a pulled or confirmed record, the pulled or confirmed posting must be reversed before the original journal can be reversed.

        Note:

        The 903 or 904 reversal journal can only be used to reverse a journal action that was input in the same accounting period.

    3. DBA Net Tax Refund Report (NTRR) sub-menu. This menu is used to increase or decrease NTRR line data. NTRR line data adjustments post as entered. There are no validity checks in place to reject erroneous postings, however, an erroneous posting can be reversed through the DBA reversal sub-menu.

    4. DBA collection sub-menu. This menu provides for the control of funds during the transfer of accountability from one campus official to another.

      1. The undeposited collections sub-menu windows allow for the input to account 7500 (undeposited collections), of memorandum copies of DTs marked undeposited collections, and amounts from the field office listings to cover tax payments received on the transfer date to the campus official, but not submitted to the depository that day. The deposit windows allow for the input of DTs related to previously input undeposited collection payments.

      2. Deposit sub-menu. This menu provides for the control of funds during the transfer of accountability from one campus official to another. The DBA deposit windows allow for the input of DTs related to previously input undeposited collection payments.

    5. DBA 908 window (Reconcile). This menu is used to reconcile the items posted to the RACS 035B (DTDV Unmatched Treasury Records) & 035C (DTDV Unmatched RACS Records) which for various reasons did not match during the month.

End of Day Routine

  1. The end of day (EOD) reports are generated to ensure that the database is in balance and ready to be backed up at ECC-MTB. These reports can all be generated at once or selected individually.

  2. Perform the normal EOD procedures. Verify completion of all window postings with RRACS technicians. Review the daily posting summary, daily and future trial balances, and NTRR. If the EOD reports are out of balance after the review, the reports must be researched and resolved immediately.

  3. The RRACS database is automatically backed up daily by EDD-DET as part of normal mainframe procedures.

  4. RRACS programs and data files are automatically backed up daily by ECC-MTB if they were changed on that day as part of the routine procedure.

  5. Records remain on the database for a period of five years.

RRACS Validation Process

  1. After completing month end reporting, the database is ready for posting. The DBA must set the date for the new accounting month and the default date for assessments.

  2. Records are not deleted during EOM processing. All records are retained in the database for up to five years, and are available for research at any time on demand.

  3. Cumulative amounts are calculated from individual records and generated based on the date parameters specified when generating reports.

  4. There are no longer current and future indicators. Records are compared to the set accounting date to determine if a record is for a future period.

  5. Records are designated as reported or not reported within the database to differentiate what should be included in the next reporting cycle.

  6. There are no longer any summary records within the database. Summaries are computed based on the sum or net of individual records.

  7. All records are related to specific general ledger accounts. It is now possible to generate all the detail records associated with a general ledger account or a summary record of assessment, etc.

Month End Closing

  1. When all transactions for a particular accounting month have been input, including perfection and re-input of errors needing correction, several procedures must be followed to close out the month, generate reports, and set up the database for the new month's transactions. These procedures must be started on the second workday after the close of the accounting month. In addition, email the HQ CFO office to notify status or completion of end of month (EOM) processing.

  2. If RRACS is unavailable on EOM processing day, contact the HQ CFO, Custodial Systems and Analysis section immediately, &CFO:FM:CFM CA Custodial Systems and Analysis. CFO has the capability to pull the campus EOM reports and email them to the campus.

  3. If Treasury is unavailable to transmit any supplemental, contact the HQ CFO office immediately.

  4. It is a requirement to use the EOM check list that was provided to all the campuses. The check list must be signed by the operation manager before emailing the HQ CFO that the EOM balancing is complete. For additional information about the checklist, see IRM 3.17.64.31.1, Accounting Control General Ledger Policies and Procedures.

  5. Perform the normal end of day (EOD) procedures. If there is an imbalance on the daily trial balance, make necessary corrections and rerun EOD procedures. When all corrections have been made, and a balanced daily trial balance has been produced, the database is ready to run month end reports.

  6. The field office inventory detail inventory report can be generated every month. Verification by the field is required semi-annually. For the months of March and September, prepare a two-way memo to each area requesting confirmation from them.

  7. Month Ending September requires that the fiscal year end reports are selected from the fiscal year end menu, after month end reports have been generated and validated.

  8. After all reports are generated, the DBA must change the accounting period and default assessment date for the new accounting month.

  9. The system is backed up during normal EOD procedures at ECC-MTB.

  10. One copy of each report is generated. Upon completion, each report must be reviewed for accuracy. If there are any problems, the DBA must initiate a corrective action and regenerate a corrected report.

Month End Reports
  1. One copy of each report is generated. Upon completion, each report must be reviewed for accuracy. If there are any problems, the DBA must initiate a corrective action and regenerate a corrected report.

  2. If there are any Treasury supplementals submitted, the service centers must email a copy to the HQ CFO no later than the fifth workday of the new month.

  3. After EOM balancing is complete, send the total dollar amount reported in Section I for appropriation fund 20X5080.1 via email to: SecuritiesAccountingTeam@fiscal.treasury.gov. The email must be sent no later than COB on the second work day of the new month, and contain:

    1. Campus name

    2. ALC

    3. Accounting period ending

    4. Total dollar amount reported on RACS 020 in Section I for Appropriation Fund 20X5080.1 (must report zero dollars).

Fiscal Year-End Processing

  1. Fiscal year-end reports must be requested immediately after verifying September month end reports.

  2. Reports are generated from the reports main menu and the fiscal year-end reports sub-menu. All reports can be requested at once by selecting the All option or individual reports may be run by selecting their individual titles. The All option zeroes out the nominal accounts, creates a journal 199, and produces a FY Form 2162 (Summary of Assessment Certificates Issued), as well as a cumulative trial balance. The monthly trial balance must be verified to assure that all nominal accounts are zero and that the real accounts have been rolled over correctly.

  3. All nominal account balances are closed out to general ledger account 9999 (Revenue Clearance Accountability).

General Ledger Chart of Accounts

  1. The general ledger chart of accounts is arranged by the below accounting classification:

    1. Accounts Receivable, 1000 Series

    2. Receipt Accounts, 2000 Series

    3. Inventory Accounts, 3000 Series

    4. Liability Accounts, 4000 Series

    5. Disbursement Accounts, 5000 Series

    6. Assessment and Settlement, 6000 Series

    7. Other Assets, 7000 Series

    8. Work in Process Control Accounts, 8000 Series

    9. Ledger Closing Accounts, 9000 Series

  2. This is the list of numbers and titles of the general ledger accounts in RRACS.

    Acct. No. Account Title Real
    or Nom.
    Normal Bal.
    1000 Accounts Receivable Real/Nominal Debit/Credit
    1100 BMF Accounts Receivable R DR
    1200 IMF/CADE Accounts Receivable R DR
    1205 CADE Accounts Receivable R DR
    1300 Non-Tax Accounts Receivable R DR
    1301 CADE Non-Tax Receivable R DR
    1321 NMF Notice R DR
    1322 NMF Taxpayer Delinquent Account Deferral R DR
    1324 NMF TDA Deferral Under Tolerance R DR
    1360 NMF Installment Agreement R DR
    1371 NMF OIC R DR
    1389 NMF Suspense R DR
    1400 Tax Accounts Transferred Out R DR
    1401 Accrued Interest on Taxes Receivable R DR
    1402 Accrued Penalty on Taxes Receivable R DR
    1403 Unpaid Compliance Assessments R DR
    1404 Accrued Interest on Compliance Assessments R DR
    1405 Accrued Penalty on Compliance Assessments R DR
    1406 Unpaid Write-Off Assessments R DR
    1407 Accrued Interest on Write-Offs R DR
    1408 Accrued Penalty on Write-Offs R DR
    1409 Unpaid Memo Assessments R DR
    1410 Accrued Interest on Memo Assessments R DR
    1411 Accrued Penalty on Memo Assessments R DR
    1430 Tax Receivable Adjustment R DR
    1510 Other Receivables, Regular R DR
    1530 Court Case Erroneous Refund R DR
    1535 CI Court Ordered Restitution Erroneous Refunds (Kansas City Only) R DR
    1540 Non-Court Case Erroneous Refund R DR
    1543 Payment Over Cancellation R DR
    1545 Identity Theft Erroneous Refund R DR
    1547 Return Preparer Misconduct Erroneous Refund R DR
    1550 Injured Spouse Claims Allowed - Rec R DR
    1600 Manual Assessment, Transit Acct R DR
    1710 Dishonored Checks R DR
    1720 Dishonored Checks, Adjustments R DR/CR
    1810 BMF Accounts Receivable, Inactive R DR
    1815 CADE Accounts Receivable, Inactive R DR
    1820 IMF/CADE Accounts Receivable, Inactive R DR
    1830 NMF Accounts Receivable, Inactive R DR
    1840 Other Receivables, Inactive R DR
    2000 Receipt Accounts Real/Nominal Credit/Debit
    2110 Withholding Revenue Receipts, Dir N DR
    2120 Ind Income Revenue Receipt, Dir N DR
    2130 Corporation Revenue Receipt, Dir N DR
    2140 Excise Revenue Receipt, Dir N DR
    2150 Estate and Gift Revenue Receipt, Dir N DR
    2170 CTA Revenue Receipt, Dir N DR
    2180 FUTA Revenue Receipt, Dir N DR
    2210 Withholding Revenue Receipt, FTD N DR
    2220 Ind Income Revenue Receipt, FTD N DR
    2230 Corporation Revenue Receipt, FTD N DR
    2240 Excise Revenue Receipt, FTD N DR
    2270 CTA Revenue Receipt, FTD N DR
    2280 FUTA Revenue Receipt, FTD N DR
    2305 No longer being used N DR
    2310 Treaty Country Receipts N DR
    2315 Arbitrage Receipt (Ogden Only) N DR
    2320 Miscellaneous Receipt N DR
    2325 Miscellaneous Forfeiture Receipts N DR
    2330 EP/EO User Fees (Cincinnati Only) N DR
    2335 Miscellaneous User Fees (Cincinnati & Ogden Only) N DR
    2340 Photocopy Fee N DR
    2345 Presidential election Campaign N DR
    2350 Public Debt N DR
    2355 Federal Court-Ordered Restitution (Kansas City Only) N DR
    2360 Conscience Fund N DR
    2365 LIFO Payments (Cincinnati Only) N DR
    2370 Mortgage Subsidy Bond Receipt N DR
    2380 Original Installment Agreement N DR
    2385 Reinstated Installment Agreement N DR
    2395 OIC User Fees (Cincinnati, Memphis & Brookhaven Only) N DR
    2410 Refund Repay Principal N DR/CR
    2420 Refund Repay Interest N DR/CR
    2600 Oil Spill Receipts (Austin Only) N DR
    2900 Child Support Receipts N DR
    2910 IPAC Receipts N DR
    2915 DOJ Receipts R DR
    3000 Inventory Accounts Real/Nominal Credit/Debit
    3200 Collateral Held (Ogden Only) R DR
    3300 Seized Property (Ogden Only) R DR
    4000 Liability Accounts Real/Nominal Credit/Debit
    4110 ECC Suspense for MF - BMF R DR/CR
    4117 Accrued Interest on Taxes Receivable R CR
    4118 Accrued Penalty on Taxes Receivable R CR
    4120 SC Suspense for MF - BMF R DR/CR
    4121 Unpaid Compliance Assessments R CR
    4122 Accrued Interest on Compliance Assessments R CR
    4123 Accrued Penalty on Compliance Assessments R CR
    4125 EFTPS/FPLP Suspense for MF - BMF (Ogden Only) R DR/CR
    4126 Unpaid Write-Off Assessments R CR
    4127 Accrued Interest on Write-Offs R CR
    4128 Accrued Penalty on Write-Offs R CR
    4130 ECC Unpostable - BMF R DR/CR
    4131 Unpaid Memo Assessments R CR
    4132 Accrued Interest on Memo Assessments R CR
    4133 Accrued Penalty on Memo Assessments R CR
    4150 HQ Due to Treasury, ADA R CR
    4205 SC Suspense for To/From CADE R DR/CR
    4210 ECC Suspense for MF - IMF/CADE R DR/CR
    4215 CADE ECC Suspense R DR/CR
    4217 CADE MFT 30 to MFT 29 R CR
    4220 SC Suspense for MF - IMF R DR/CR
    4225 EFTPS/FPLP Suspense for MF - IMF (Ogden Only) R DR/CR
    4230 ECC Unpostable Documents - IMF R DR/CR
    4254 MFT 30 to MFT 29 R CR
    4300 Unapplied FTD Transactions - SCCF (Austin, Cincinnati, Kansas City, and Ogden Only) R DR/CR
    4420 SC Suspense for NMF R DR/CR
    4425 EFTPS/FPLP Suspense for NMF (Ogden Only) R DR/CR
    4430 Unpostable Documents - NMF R DR/CR
    4440 Assessment & Abatement Suspense - NMF R DR/CR
    4510 Pre-payment Credits - BMF R CR
    4520 Pre-payment Credits - IMF/CADE R CR
    4521 Pre-payment Credit - Non-Tax R CR
    4522 CADE Pre-payment CR - Non-Tax R CR
    4530 CADE Pre-payment CR R CR
    4610 Unapplied Advance Payments R CR
    4615 IRC Sec. 847 Spec. Tax Payments R CR
    4620 Unidentified Remittances R CR
    4625 Insolvency Suspense R CR
    4626 PFIC Suspense R CR
    4701 Liability for Cover Over - NMI (Ogden Only) R CR
    4702 Liability for Cover Over - VI (Austin and Ogden Only) R CR
    4703 Liability for Cover Over - Guam (Ogden Only) R CR
    4704 Liability for Cover Over - Samoa (Ogden Only) R CR
    4710 Offers-in-Compromise (Cincinnati Only) R CR
    4720 Sales of Seized Property (Ogden Only) R CR
    4730 Miscellaneous Deposit Fund R CR
    4740 Deposit Funds in Transit R CR
    4750 Anti-Drug Special Funds Liability R CR
    4755 Liability For Informant Reward (Ogden Only) R CR
    4765 EFTPS Miscellaneous Suspense (Ogden Only) R DR/CR
    4801 Approved Vouchers Payable, Prin R CR
    4802 Approved Vouchers Payable, Int R CR
    4803 Approved Vouchers Payable, Deposit Fund R CR
    4804 Approved Vouchers Pay, Anti-Drug R CR
    4805 Approved Vouchers Payable, Oil Spill R CR
    4806 Approved Vouchers payable, Miscellaneous Revenue R CR
    4808 Approved Vouchers Payable, Informant Reward R CR
    4810 Liability for Budget Clearing Account - Increases/Decreases R DR/CR
    4811 Approved Vouchers Payable - NMI (Ogden Only) R CR
    4812 Approved Vouchers Payable - VI (Austin and Ogden Only) R CR
    4813 Approved Vouchers Payable - Guam (Ogden Only) R CR
    4814 Approved Vouchers Payable - Samoa (Ogden Only) R CR
    4815 Approved Vouchers Payable - Miscellaneous User Fee R CR
    4816 Approved Vouchers Payable - Photocopy Fee R CR
    4817 Approved Vouchers Payable - Original Installment Agreement User Fee R CR
    4818 Approved Vouchers Payable - Reinstated Installment Agreement User Fee R CR
    4819 Approved Vouchers Payable - OIC User Fee R CR
    4820 Approved Vouchers Payable - Reserved R CR
    4900 Revenue Credit in Transit to Other Service Campuses R CR
    4910 Disbursement, Loss R DR
    4950 IMF Unallowable Deductions R DR/CR
    4960 Unconfirmed FTDs (Austin, Cincinnati, Kansas City, and Ogden Only) R DR/CR
    4970 Unapplied Refund Reversals R DR/CR
    4975 Liability DOJ Receipts (Kansas City Only) R CR
    4980 Liability for Inventory Accounts (Ogden Only) R CR
    4985 IPACR Suspense R CR
    5000 Disbursement Accounts Real/Nominal Debit/Credit
    5100 Disbursements, Prin N CR
    5152 HQ Undelivered Orders UP 0951 Child R DR
    5153 HQ Undelivered Orders ADV 0951 Child R DR
    5154 HQ Delivered Orders Paid 0951 Child N DR
    5156 HQ Undelivered Orders UP 0949 Child R DR
    5157 HQ Undelivered Orders ADV 0949 Child R DR
    5158 HQ Delivered Orders PAID 0949 Child N DR
    5200 Disbursements, Int N CR
    5301 Disbursements, Miscellaneous User Fee N CR
    5302 Disbursements, Photocopy Fee N CR
    5303 Disbursements, Original Installment Agreement N CR
    5304 Disbursements, Reinstated Installment Agreement N CR
    5305 Disbursements, OIC User Fee N CR
    5306 Disbursements, Reserved N CR
    5400 Disbursements, Miscellaneous Revenue N CR
    5401 Disbursements, PFIC (Ogden Only) N CR
    5665 HQ Expense, Disaster Tax Relief R DR
    5675 HQ State Innov Seq DIsb N DR
    6000 Assessments and Settlements Real/Nominal Debit/Credit
    6001 Installment Agreement Liability N CR
    6010 Arbitrage Rebate Liability Revenue (Ogden only) N CR
    6011 Arbitrage Rebate Penalty Liability (Ogden Only) N CR
    6110 Withholding Tax Assessment - Prin N CR
    6111 Withholding Tax Assessment - Pen N CR
    6112 Withholding Tax Assessment - Int N CR
    6120 Individual Income Tax Assessment - Prin N CR
    6121 Individual Income Tax Assessment - Pen N CR
    6122 Individual Income Tax Assessment - Int N CR
    6130 Corporation Tax Assessment - Prin N CR
    6131 Corporation Tax Assessment - Pen N CR
    6132 Corporation Tax Assessment - Int N CR
    6140 Excise Tax Assessment - Prin N CR
    6141 Excise Tax Assessment - Pen N CR
    6142 Excise Tax Assessment - Int N CR
    6150 Estate & Gift Tax Assessment - Prin N CR
    6151 Estate & Gift Tax Assessment - Pen N CR
    6152 Estate & Gift Tax Assessment - Int N CR
    6170 CTA Tax Assessment - Prin N CR
    6171 CTA Tax Assessment - Pen N CR
    6172 CTA Tax Assessment - Int N CR
    6180 FUTA Tax Assessment - Prin N CR
    6181 FUTA Tax Assessment - Pen N CR
    6182 FUTA Tax Assessment - Int N CR
    6190 Previously Assessed Tax N CR
    6191 Previously Assessed - Pen N CR
    6192 Previously Assessed - Int N CR
    6200 Taxpayer Accounts Transferred N DR/CR
    6201 Mirror Assessments N DR/CR
    6310 Miscellaneous Fees N CR
    6320 Offshore Oil Account (Austin Only) N CR
    6330 Debtor Master file Offsets N CR
    6400 Miscellaneous Revenue Collection N CR
    6510 Overassessment Credited N DR
    6520 Refund of Tax & Interest - NMF N DR
    6530 Tax Accounts Compromised N DR
    6540 Small Debits and Credits Cleared N DR/CR
    6545 BMF 100 percent Penalty Credit Allowed N DR/CR
    6550 Withholding Tax Payments Credited N DR
    6560 Other Credits Allowed N DR
    6565 Refund Cancellation Cr Allowed N DR
    6570 Substantiated Credits Allowed N DR
    6575 Overpayment Interest Allowed N DR
    6580 Revenue CR Transferred To/From N DR/CR
    6590 Deposit Fund CR Transferred To/From N DR/CR
    6600 Accounts Cleared, Statute N DR/CR
    6700 Foreign Check Collection Cost & Miscellaneous Bank Charges N DR
    6800 Excess Collection N CR
    6810 Unapplied Statute Expired Credit N DR/CR
    6900 Adjustments or Corrections of Rev N DR
    6901 ECP Adjustments of Revenue N DR
    6905 Identity Theft Erroneous Refund Write-Offs N DR
    6907 Return Preparer Misconduct Erroneous Refund Write Offs N DR
    6910 Adj or Correction of Miscellaneous Revenue N DR
    6920 Disbursement Write-Off N DR
    6950 DOJ Civil Debt Collection Holdback (Atlanta Only) N DR
    6970 Small Debit and Credit cleared - FTD N DR/CR
    6975 Liability for Small Debits and Credits Cleared - FTD N DR/CR
    6980 Acquired Property Disposed of Other Than by Sale (Ogden Only) N DR
    6985 Profit and Loss on Sale of Acquired Property (Ogden Only) N DR/CR
    7000 Other Assets Real/Nominal Debit/Credit
    7001 Unclassified EFTPS/FPLP (Ogden Only) R DR
    7002 Deposit Fund Receipts/Deposit Fund Disbursements R DR/CR
    7003 Anti-Drug Special Fund Receipts/Anti-Drug Disbursements R DR/CR
    7004 Informant Reward Drug Receipts/Disbursements (Ogden Only) R DR/CR
    7005 Cover Over Receipts/Disbursement - NMI (Ogden only) R DR/CR
    7006 Cover Over Receipts/Disbursements - VI (Austin and Ogden Only) R DR/CR
    7007 Cover Over Receipts/Disbursements - Guam (Ogden Only) R DR/CR
    7008 Cover Over Receipts/Disbursements - Samoa (Ogden Only) R DR/CR
    7009 Insolvency Unclassified R DR
    7100 Property Acquired in Payment of Taxes (Ogden Only) R DR
    7200 Unclassified FTDs R DR
    7210 Confirmed Unclassified Amounts (Austin, Cincinnati, Kansas City, and Ogden Only) R DR
    7220 Unconfirmed Unclassified Amounts (Austin, Cincinnati, Kansas City, and Ogden Only) R DR
    7300 Unconfirmed Debits (Austin, Cincinnati, Kansas City, and Ogden Only) R DR
    7500 Undeposited Collections R DR
    7610 Embezzlement and Thefts R DR
    7620 Unexplained Losses R DR
    7649 ECP Deposit Discrepancy R DR
    7650 Deposit discrepancy R DR
    8000 Work in Process Control Accounts Real/Nominal Debit/Credit
    8100 FTD Input (Austin, Cincinnati, Kansas City, and Ogden Only) N DR
    8200 FTD Deposits confirmed (Austin, Cincinnati, Kansas City, and Ogden Only) N CR
    9000 Ledger Closing Accounts Real/Nominal Debit/Credit
    9998 Reversal of Revenue Clearance Accountability N DR/CR
    9999 Revenue Clearance Accountability R DR/CR

Account Series 1000, Accounts Receivable

  1. This account series is generally taxpayer accounts that contain an outstanding balance of monies due and payable to the U.S. government. The majority of the accounts receivable are the result of tax assessments against the various tax classes. However, dishonored checks, account transfers and other receivables are included in this series.

Account 1400, Tax Accounts Transferred Out (Real Account, DR Normal Balance)
  1. This receivable account records and controls amounts on non-master file (NMF) accounts while in the process of manual transfer to other campuses. NMF account amounts post to this account when Form 514B (Credit Transfer Voucher) is prepared. Amounts close from the account upon receipt of the receiving campus' acknowledgement of account transfer on Form 514B, Part 2.

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

Account 1401, Accrued Interest on Taxes Receivable (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued interest on taxes receivable due from taxpayers for which IRS can support the existence of a receivable either through taxpayer agreement or through court rulings in favor of the IRS.

Account 1402, Accrued Penalty on Taxes Receivable (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued penalty on taxes receivable due from taxpayers for which IRS can support the existence of a receivable either through taxpayer agreement or through court rulings in favor of the IRS.

Account 1403, Unpaid Compliance Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for unpaid assessments for which neither the taxpayer nor a court has affirmed that the taxpayer owes amounts to the IRS.

Account 1404, Accrued Interest on Compliance Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued interest on compliance assessments for which neither the taxpayer nor a court has affirmed that the taxpayer owes amounts to the IRS.

Account 1405, Accrued Penalty on Compliance Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued penalty on compliance assessments for which neither the taxpayer nor a court has affirmed that the taxpayer owes amounts to the IRS.

Account 1406, Unpaid Write-Off Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for unpaid assessments for which IRS does not expect further collections due to factors such as taxpayer's bankruptcy, insolvency or death.

Account 1407, Accrued Interest on Write-Off Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued interest on write-off assessments for which IRS does not expect further collections due to factors such as taxpayer's bankruptcy, insolvency or death.

Account 1408, Accrued Penalty on Write-Off Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued penalty on write-off assessments for which IRS does not expect further collections due to factors such as taxpayer's bankruptcy, insolvency or death.

Account 1409, Unpaid Memo Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for unpaid assessments that should not be reported in any of the three unpaid assessment categories (Taxes Receivable, Compliance or Write-Offs).

Account 1410, Accrued Interest on Memo Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued interest on memo assessments that should not be reported in any of the three unpaid assessment categories (Taxes Receivable, Compliance and Write-Offs).

Account 1411, Accrued Penalty on Memo Assessments (Real Account, DR Normal Balance)
  1. This receivable account is used for accrued penalty on memo assessments that should not be reported in any of the three unpaid assessment categories (Taxes Receivable, Compliance and Write-Offs).

Account Series 2000, Receipt Accounts

  1. This series of accounts records 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 TAS. The total of the receipt accounts represents the total monies received by the IRS for the current fiscal year.

Account 2110, Withholding Revenue Receipts, Direct (Nominal Account, DR Normal Balance) (TAS 20-0101)
  1. This receipt account represents monies collected in payment of withholding tax described in the IRC.