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).

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.

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

The authorities for this IRM include:

This section provides responsibilities for:

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.

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.

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:

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.

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.

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 Fiscal Service are accomplished primarily by the submission of monthly reports of deposit and classified collections and of disbursements from the refund appropriations.

The following terms and definitions apply to this program:

The following acronyms apply to this program:

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

- The Agency Location Code plus 2 (ALC +2) is the ALC plus a unique two digit number.

This number is assigned by Treasury OTC Support Center.

Below is a list of the ALC +2 assignments:

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.

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

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

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.

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.

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

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

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

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.

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.

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.

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.

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.

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.

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.

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

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

The accounting section is responsible for:

The SP P&A analyst is responsible for:

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.

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.

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

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.

For processing a DT, an Ogden insolvency technician:

For processing each DT, an Ogden accounting technician:

For processing a DV, the Ogden accounting technician:

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.

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

Philadelphia campus is responsible for:

The accounting technician:

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

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.

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

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.

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

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

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 (FBAR) payments are considered miscellaneous receipts that are not reflected on the taxpayer's account.

ECC-MTB:

The accounting technician:

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

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

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

For processing a DT, the Cincinnati accounting technician:

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

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

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

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

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

For DT errors, the financial institution sends a OTCnet deposit ticket to the campus. Types of deposit discrepancies are:

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).

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.

The accounting technician:

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:

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

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

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

CFO scorecard rates the following monthly reports:

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

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

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.

Payments received for this program are considered deposit fund receipts.

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

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.

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) is a Treasury secure web-based application that:

The Custodial Accounting section or local management determines who may have access to OTCnet to perform assigned duties. To obtain user access to OTCnet, users must complete training for your assigned role(s), then submit the training certificate(s) of completion and Form 15081, Over the Counter Deposit Reporting Network (OTCnet) User Authorization, to the manager for approval.

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

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.

The technician is responsible for contacting the financial institution to initiate a deposit trace, if the OTCnet deposit ticket 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.

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

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.

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

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

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.

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.

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.

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

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.

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

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:

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.

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

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

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

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

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.

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

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.

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.

The accounting technician is responsible for:

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.

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

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.

The financial institution prepares a manual OTCnet deposit ticket and records it in the Collection Information Repository (CIR) on the payment due date.

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.

The campus is responsible for:

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.

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

The FEDTAX system provided an electronic payment method for federal agencies of the United States to transmit Federal Tax Deposits (FTD) and to file required employment tax forms. At the end of calendar year 2009, federal agency users were transitioned to using EFTPS for Federal Agencies at https://www.eftps.gov/eftps which is operated by Bank of America.

Federal agency tax payments will be processed through the Collections Information Repository (CIR).

EFTPS for Federal Agencies records payments and DV/DTs at the Ogden campus and require no separate accounting.

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.

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

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

The following programs transmit through EFTPS:

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

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

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

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.

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.

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.

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

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.

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.

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

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

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

The monthly field office inventory report includes seized property.

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.

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.

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.

Form 5074 is forwarded 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.

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

Monthly, accounting is responsible for:

Quarterly, the accounting unit in Austin is responsible for:

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

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

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

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

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.

Once processed, an email is generated and sent to the service centers and CFO contact points:

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.

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.

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.

Use the following sources for the information required on the reconciliation report:

The technician completes the information required on the Deposit/Disbursement Reconciliation report using the following information:

Enterprise Computing Center (ECC) prepares and certifies the voucher and schedule for payment via the Secure Payment System (SPS) for each campus.

The ECC generates Business Master file (BMF) and IMF refunds for overpaid balances.

ECC prepares the voucher and:

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.

RACS entries are made from the SPS prints. Net Tax Refund Report (NTRR) items and amount are input directly from tape.

One copy is used for journalization.

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.

Manual refunds are prepared for items when there is a need to expedite a refund. Procedures for processing manual refunds are in:

The documents used for refund disbursements are:

The documents received for refund reversals are:

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).

Payments and collections transferred to and from an ALC are generated by the IPAC system.

IPAC/R (receipts) are:

IPAC/D (disbursements) are:

The receiver Treasury Account Symbol (TAS) on all IPACs must be verified before entering into RRACS. The rule is:

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.

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.

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 payments (Window 706, 707 or 708) use the following IRS and SGL accounts:

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.

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.

An automated batch journal is generated confirming when the refund match is complete.

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:

If the Treasury record is a photocopy fee refund, a reclassification is posted and the following accounts are updated:

The following reports are created from the refund match program:

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.

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.

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.

Once notified, generate the automated 0653, SPC Statement of Difference, Disbursements summary report.

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.

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, if unreconciled. 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 CFO HQ RACS analyst for your campus, WI.SP.RRACS@irs.gov. The SOD worksheets must be available when requested from HQ CFO.

Use the following sources for the information required on the CARS/RACS SOD Reconciliation Report:

The technician completes the information required on the Disbursement Reconciliation Report using the following information:

The Disbursement Reconciliation Report requires the following signatures:

The automated 653 summary report requires the following signatures:

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.

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.

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 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.

Form 8166 (Input Reconciliation Sheet) was developed for:

Follow these procedures for using Form 8166:

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.

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.

There is a maximum of 75 source journals per posting number. This includes the reclassification and application posting necessary for a complete journal.

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.

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.

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.

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:

Components of the RRACS database:

The accounting application window records the transfer of debits/credits between various general ledger accounts and between campuses.

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

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.

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

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).

RRACS utilizes separate windows to input transactions: