3.17.64 Accounting Control General Ledger Policies and Procedures

Manual Transmittal

September 06, 2017

Purpose

(1) This transmits revised IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

Material Changes

(1) IPU 16U1450 issued 09-28-2016 IRM 3.17.64.28.1.1(5) step 4 Updated names of area analyst for remittances and removed area 5.

(2) IPU 16U1450 issued 09-28-2016 IRM 3.17.64.35.2(6) Updated names of area analyst for remittances for Trace ID and removed area 5.

(3) IPU 16U1508 issued 10-07-2016 IRM 3.17.64.17.10 Added paper process procedures.

(4) IPU 16U1508 issued 10-07-2016 IRM 3.17.64.17.12 Added paper process procedures.

(5) IPU 16U1508 issued 10-07-2016 IRM 3.17.64.29.7 Added Remediation Plan.

(6) IPU 16U1508 issued 10-07-2016 IRM 3.17.64.29.8 Updated phone number for SPHQ analyst Austin.

(7) IPU 16U1546 issued 10-17-2016 IRM 3.17.64.37(3) Added address for Private Delivery Service (POS) Mailing.

(8) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.3.5.1 Added 155A, 155B and 155B to Submission Processing RRACS report.

(9) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.13.1.4(4) Added Manager should sign and date history sheet.

(10) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.17.2 Added Identity Theft Erroneous Refunds Monthly Activity Report 155A.

(11) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.17.2.1 Added Identity Theft Erroneous Summary Report 155B.

(12) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.17.2.2 Added Identity Theft Erroneous Open Cases Report 155C.

(13) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.17.6.3 (1) (c) Changed RRACS report 0155 to 155B.

(14) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.26 Added two notes regarding the reporting period and to rotate periodically balancing and preparation of F3997.

(15) IPU 16U1606 issued 10-28-2016 IRM 3.17.64.27.1 Added individual records that result as Unpostable and a note.

(16) IPU 16U1615 issued 11-01-2016 IRM 3.17.64.17.10(3) Added (a) If a revise memo is needed for any reason, annotate revised on top of new memo and staple revised memo to original memo.

(17) IPU 16U1615 issued 11-01-2016 IRM 3.17.64.21.7(2) Added optional.

(18) IPU 16U1702 issued 11-25-2016 IRM 3.17.64.17.10(2) Note updated 4(g) should be 4 (f).

(19) IPU 16U1702 issued 11-25-2016 IRM 3.17.64.17.11(2) Removed the note (no extract listing).

(20) IPU 16U1702 issued 11-25-2016 IRM 3.17.64.17.12(2) Updated from RACS to Accounting.

(21) IPU 16U1702 issued 11-25-2016 IRM 3.17.64.25.1(10) Added include the General Ledger Account page.

(22) IPU 16U1702 issued 11-25-2016 IRM 3.17.64.26(11) Added (f) Your competed Form 6168 should include the General Ledger Account page. Do not use the hide accounts feature button.

(23) IPU 16U1741 issued 12-12-2016 IRM 3.17.64.28.1.1(5) Updated step 4 name for Field Assistance Area 4.

(24) IPU 17U0222 issued 02-01-2017 IRM 3.17.64.17.6 Added Non Master File Identity Theft Erroneous Refund procedures for Cincinnati only.

(25) IPU 17U0227 issued 02-02-2017 IRM 3.17.64.28.1.1 Added link for ATP Share Point and under step 7 inform Campus Remittance Security Coordinator (RSC).

(26) IPU 17U0597 issued 03-31-2017 Revise the title of IRM 3.17.64.1 to Program Scope and Objectives, to properly reflect the information communicated in the subsection. Included important information to conform to the new internal and management control standards under the following titles:

(27) IPU 17U0597 issued 03-31-2017 Added IRM 3.17.64.1.1 Responsibilities.

(28) IPU 17U0597 issued 03-31-2017 Added IRM 3.17.64.1.2 Terms/Definitions/Acronyms.

(29) IPU 17U0597 issued 03-31-2017 Added IRM 3.17.64.1.3 Related Resources.

(30) IPU 17U0597 issued 03-31-2017 Removed IRM 3.17.64.2, IRM 3.17.64.3, IRM 3.17.64.4, IRM 3.17.64.4.1, IRM 3.17.64.4.2 and IRM 3.17.64.4.3.

(31) IPU 17U0622 issued 04-04-2017 IRM 3.17.64.28 Scorecard added letter h.

(32) IPU 17U0622 issued 04-04-2017 IRM 3.17.64.28.7 Added new Scorecard requirement for Informant Reward Account 20x5433 (Ogden only)

(33) IPU 17U0622 issued 04-04-2017 IRM 3.17.64.30.1 End of Month Checklist under third workday added (Ogden only) Generate (print or PDF) and have RACS manager sign the CARS GWA Account Statement for 20X5433.

(34) IPU 17U0731 issued 04-24-2017 IRM 3.17.64.16.12(4) Note Added January 14, 2014 through May 19, 2014 and removed May 20, 2014 and prior.

(35) IPU 17U0754 issued 04-27-2017 IRM 3.17.64.28.2 #4 Removed Statement of Difference-Balancing.

(36) IPU 17U0921 issued 05-26-2017 IRM 3.17.64.16.6.1 Added #5 On a daily basis the accounting area that maintains the 1545 account should scan the EOD1622 and flag those items that have expired. The expired items can be added to the monthly extract listing to be written-off before end of month.

(37) IPU 17U0921 issued 05-26-2017 IRM 3.17.64.23.4.1 Added a new section DMF 1550 injured Spouse Claims Reconciliation Monthly Procedures.

(38) IPU 17U0988 issued 06-09-2017 IRM 3.17.64.23.4.1(4) Added to upload to Share Point.

(39) IPU 17U0988 issued 06-09-2017 IRM 3.17.64.24.1 Added a Note: Due to a programming change in March 2016 for accounts 1300 and 4521, you will now need to use the running total of the 162.

(40) IPU 17U0988 issued 06-09-2017 IRM 3.17.64.25(8) (c) Added expired statute count (if applicable)

(41) IPU 17U1011 issued 06-14-2017 IRM 3.17.64.27.6.1 Added new instructions alpha c through e and a note regarding ECP rejects, dummy debit.

(42) IRM 3.17.64 Editorial changes made throughout.

(43) IRM 3.17.64.3.1 (3) (b) Added RPA4240

(44) IRM 3.17.64.9 (2 ) Reworded the statement Credit transfers of NMF credits to NMF campus.

(45) IRM 3.17.64.16.1 (3) Added quarterly review should be done by the Erroneous Refund team to ensure the doc-id and amount balances to the account.

(46) IRM 3.17.64.16.2.1 (2) Added SPC Reports Main Menu.

(47) IRM 3.17.64.16.2.3 (3) Added quarterly review should be done by the Erroneous Refund team to ensure the doc-id and amount balances to the account.

(48) IRM 3.17.64.16.6.1(5) Added if posted on IDRS.

(49) IRM 3.17.64.16.7 (3) (a) Added For prepare date use the current date.

(50) IRM 3.17.64.16.8 (3) (a) Added For prepare date use the current date.

(51) IRM 3.17.64.17.8.1 changed point of contact name for Cincinnati.

(52) IRM 3.17.64.25.8 Added letter “d” Balance sheets are not required for a zero amount as long as it is always a zero.

(53) IRM 3.17.64.27.1.1(4) Changed the examples from 2014 to 2017.

(54) IRM 3.17.64.27(2)a Added the requirement to copy the Area Office Analyst for the servicing Field Assistance (FA) Area.

(55) IRM 3.17.64.27.6 (2) (a) Corrected Lockbox Error report from 0128 to 0151.

(56) IRM 3.17.64.28.1 Corrected time frame from 12:00 to 11:00 local.

(57) IRM 3.17.64.34.2(6) Corrected the name for FA 4 area analyst.

(58) IRM 3.17.64.36 Added street address to mailing address.

Effect on Other Documents

IRM 3.17.64, Accounting Control General Ledger Policies and Procedures dated September 08, 2016 (effective date October 1, 2016), is superseded. This IRM also incorporates the following IRM procedural updates (IPUs) issued:02-01-2017 17U0222, 02-02-2017 17U0227, 03-31-2017 17U0597, 04-04-2017 17U0622, 04-24-2017 17U0731, 04-27-2017 17U0731, 04-27-2017 17U0754, 05-26-2017 17U0921, 06-09-2017 17U0988, 06-14-2017 17U1011.

Audience

Submission Processing, Wage and Investment Division

Effective Date

(09-06-2017)

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

Program Scope and Objectives

  1. Purpose: This IRM describes the necessary accounting procedures for Revenue Accounting Control (RAC). It covers the maintenance and responsibility of the Submission Processing Revenue Accounting Control (RRAC) general ledger accounts, specific accounting programs, reports and internal controls. These controls are necessary to ensure compliance with all administrative and legal requirements of the IRS, the Department of Treasury, and the Government Accountability Office (GAO).

    Note:

    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.

  2. Audience: Submission Processing, Accounting.

  3. Policy Owner: The Director of Submission Processing Control Section.

  4. Program Owner: Submission Processing Accounting Control Section.

  5. Primary Stakeholders: Management officials who rely on accurate data gathered by the RRACS system.

Responsibilities

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

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

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

Terms/Definitions/Acronyms

  1. The following sections contain a glossary of accounting terms, acronyms and related IRMs.

    Terms

    TERM DEFINITION
    Abatement The reduction or elimination of an assessment.
    Accounting An established record of all transactions for returns and documents that are processed throughout IRS.
    Account Balance The difference in dollars between the total debit and total credit of an account.
    Accounting Period Time covered by financial statements, which can be for any length of time but is usually annual, quarterly or monthly. The annual financial statements may be on a calendar or fiscal year basis.
    Agency Location Code (ALC) Eight digit Treasury identifier assigned by Bureau of Fiscal Service (BFS)for Treasury reporting purposes. The first two digits identify the Treasury department, the third and fourth digits identify the IRS, and the remaining four digits identify the particular IRS campus.
    Assessment Taxes assessed, penalties, and interest charged to a taxpayer's account.
    Assessment Statute Expiration Date (ASED) The date the statutory period of time for assessing tax ends. The time frame for assessing tax is normally three years from the due date, or three years from the date the return is filed, whichever is later. (IRC 6501)
    Automated Non-Master File (ANMF) A system of pre-ADP (Automated Data Processing) cases, overflow cases, and those cases for which ADP processing is not available, such as new taxes enacted by congress for which there is no provision in existing master-file systems.
    Batch Process Computer processing of business transactions and preparation of financial reports in which processing tasks are scheduled in a logical order.
    Business Event Type Code (BETC) The BETC is an 8 character code used in the Central Accounting Reporting System (CARS) system to indicate the type of activity being reported, such as payments, collections, investments, etc. This code must accompany the Treasury Account Symbol (TAS) and the dollar amounts in order to classify the transaction against the fund balance with Treasury.
    Central Accounting Reporting System (CARS) CARS addresses the central accounting and reporting functions and processes associated with budget execution, accountability, and cash/other asset management. This includes the collection and dissemination of financial management and accounting information from and to federal program agencies. CARS was formerly known as Government Wide Accounting (GWA).
    Collections Information Repository (CIR) CIR is a collections reporting tool, supplying the latest information on deposits and detail of collections transactions to federal agencies. The system will allow financial transaction information from all collections systems and settlement mechanisms to be exchanged in a single system. CIR was previously named Transaction Reporting System (TRS) prior to January 2013.
    Classification The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class application.
    Collection Statute Expiration Date (CSED) The date the statute expires for collection of tax, penalty or interest. The CSED is ten (10) years from the assessment date (23C date) of the posting of the original return (Transaction Code 150).
    Custodial Detail Data Base (CDDB) The CDDB is an enhancement to the Financial Management Information System created to track all individual payments that comprise a deposit ticket, process all posted remittance transactions, and generate reconciliation reports to balance RRACS deposit totals to the totals to the CDDB deposit totals. It creates report schedules and completeness test reports to compare accumulated Master File total against RRACS totals. It has also been expanded to include refund transactions.
    Customer Account Data Engine (CADE) CADE is the cornerstone of the IRS modernization program. It is incrementally replacing the IRS tape-based Individual Master File (IMF) system as the system of record for taxpayer account and return data. CADE is being developed and implemented over a series of multiple releases. Taxpayer accounts are moved from the IMF to the modernized system based on a segmented approach whereby the simplest accounts are moved first (e.g.,1040EZ accounts), followed by increasingly complex taxpayer accounts with each new phase. CADE was discontinued in June 2011.
    Customer Account Data Engine 2 (CADE 2) CADE 2 is a centralized relational Database. Beginning January 2012, the Individual Master File (IMF) will provide daily processing of taxpayers accounts.
    Debit Voucher (DV) SF 5515 - summary document used by a bank to control returned dishonored checks or to make adjustments to deposit tickets.
    Deposit Ticket (DT) SF 215/SF 215-A - summary document issued by a financial institution for the purpose of summarizing and classifying collections received for a specific deposit date.
    Disbursement Accounts Series of accounts that record monies disbursed as refunds of previously collected revenue or funds.
    Document Locator Number (DLN) The DLN is a controlled number assigned to every return or document input through the Automated Data Processing (ADP) system. The DLN is used to control, identify, and locate documents processed in the ADP system.

    Note:

    The format for a DLN is as follows:

    • First 2 digits - Filing Location Code (FLC)

    • Third digit - Tax Class

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

    • Sixth, Seventh and Eighth digit - Julian Date

    • Ninth, Tenth and Eleventh digits - Block Number

    • Twelfth and Thirteenth digits - Serial Number

    • Fourteenth digit - Year the DLN was assigned

    Enterprise Computing Center (ECC) The computing site primarily responsible for maintenance of the Master File records for each taxpayer, and for the electronic processing of related inputs and outputs.
    Erroneous Refund Statute Expiration Date (ERSED) Expires two years from the date of the refund (transaction code (TC) 846/840) if caused by the IRS or five years from the date of the refund (TC 846/840) when it is proven that the refund was issued due to fraud or misrepresentation of material fact by the taxpayer.
    Fiscal Year (FY) Any 12 month accounting period used by an economic entity. For reporting purposes, a fiscal year extends from October 1 through September 30.
    Fiscal Year End Processing The process by which fiscal year end reports are generated after verifying September month-end reports and all nominal account balances are closed out.
    General Ledger (GL) A database, which contains all of the government agency accounts. Each account is maintained separately.
    Government On-line Accounting Link System II (GOALS II) Government On-Line Accounting Link System II (GOALS II) is the system that allows BFS to receive agency accounting data and forward it to various systems within BFS for final processing and to distribute agency accounting reports.
    Journal The source for recording all debits and credits into the general ledger account.
    Month End Closing When all transactions for a particular accounting month have been input, procedures must be followed to close out the month, generate reports, and set up the database for a new month's transactions. Due to the initiative set forth by the Secretary of the Treasury, these procedures should be started on the second workday after the close of the accounting month.
    Nominal Account Accounts showing the accumulation of revenue and expenses for only one accounting period. Nominal accounts are systemically transferred into Account 9998 at the end of each fiscal year leaving this account at zero.
    Non-Tax Receivables The net total of non-tax monies posted on Master File that have an outstanding module balance.
    Normal Balance The usual balance of an account, debit or credit.
    Opening Balances Beginning balances for all real accounts at the start of the fiscal year.
    Over the Counter Network (OTCnet) A system designed to consolidate the functionality of Paper Check Conversion-Over the Counter (PCC-OTC) and Treasury General Account Deposit Reporting Network (TGAnet), providing a one system solution for agency over-the-counter deposit activity.
    Paper Check Conversion (PCC) PCC converts paper checks into electronic debits.
    Real Account A permanent account whose balances are not zeroed out at the end of an accounting period, but are carried over to the next accounting period.
    Receipt Account Series of accounts used to record the receipt of and the accountability for monies received for deposit into the Treasury. The accounts are classified by type of receipt received, and represented by the Treasury Account Symbol (TAS).
    Reclassification Adjustments made to correct classifications of revenue.
    Reconciliation The act of ensuring that the total of the monetary balance of the appropriate general ledger account agrees with the balance in the related subsidiary account. All variances are identified.
    Redesigned Revenue Accounting Control System (RRACS) The fully automated system used to provide accounting control for all revenue accounting transactions. The database, located at ECC-Detroit, consists of general ledger account, plus a variety of internal records used for balancing and reporting.
    Refund Statute Expiration Date (RSED) The RSED is generally three years from the Return Due Date (RDD) for prepaid credits if a return was filed, or two years from the payment date for other payments whichever is later.
    Revenue Receipts Collection of taxes, penalties, interest, and costs assessed or assessable against taxpayers, and payments on accepted Offer In Compromise, are classified as revenue receipts. Amounts received as payment of court fines, court costs, forfeitures, penalties incident to, or imposed for, violation of applicable laws from the redemption of property acquired by the government, and receipts from consummated sales of acquired property, will also be classified for deposit as revenue receipts.
    Scorecard Used to track the timely submission of the RRACS reports to Chief Financial Officer (CFO) and Submission Processing Headquarters (SP HQ), to score the accuracy of some of the reports and reconciliations and rate the timeliness of resolving outstanding accounting issues.
    Subsidiary Account Subsidiary accounts provide necessary details in support of certain general ledger accounts.
    Tax Class The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class of application.
    • Tax Class 1 - Withholding and Federal Insurance Contribution Act (FICA)

    • Tax Class 2 - Individual Income

    • Tax Class 3 - Corporation Income

    • Tax Class 4 - Excise

    • Tax Class 5 - Estate and Gift

    • Tax Class 6 - Non-Master File

    • Tax Class 7 - Railroad Retirement (RRT)

    • Tax Class 8 - Federal Unemployment Tax (FUTA)

    Tax Period A six digit number which represents the end of the tax liability year for a return; and is designated by the year and month.
    Trace ID The CDDB mechanism that identifies each Deposit Ticket and its corresponding payments is a 20 digit number made from 14 characters related to the corresponding Deposit Ticket and 6 characters representing the Detail Payment Transaction Record for an individual payment.
    Transaction Reporting System (TRS) TRS is a collections reporting tool, supplying the latest information on deposits and detail of collections transactions to federal agencies. The system will allow financial transaction information from all collections systems and settlement mechanisms to be exchanged in a single system. TRS replaced CASHLINK 2 in December 2012. TRS was renamed Collections Information Repository (CIR) in January 2013.
    Transaction Type Descriptive information as to the kind of transaction being processed on a specific window or batch process.
    Treasury Account Symbol (TAS) Money collected under the accountability of the campus director is entered into one of the receipt accounts. The receipt accounts record the receipt of money to Treasury for the current fiscal year.
    Treasury Offset Program (TOP) Treasury's Bureau of Fiscal Service (BFS) holds the responsibility for administering tax refund offsets to outstanding child support or state and federal agency debts.
    Trial Balance A listing of accounts in the general ledger with their debit or credit balances in respective columns.
    23C Date The date a liability is assessed.
    Window Specific screens within the RRACS system, used to journal various types of transactions.
    Write-Off The amount of assessments that the entity still has statutory authority to collect at the end of the period, but has no future collection potential and are therefore defined as write-offs.

    Acronyms

    ACRONYM DESCRIPTION
    AIS Automated Insolvency System
    ALC Agency Location Code
    ANMF Automated Non-Master File
    AORR Area Office Remittance Register EOD-2421 Report
    BETC Business Event Type Code
    BFS Bureau of Fiscal Service (formerly known as Financial Management Service (FMS))
    BMF Business Master File
    CADE Customer Account Data Engine
    CARS Central Accounting Reporting System
    CDDB Custodial Detail Database
    CFO Chief Financial Office
    CIR Collections Information Repository (formerly known as Transaction Reporting System (TRS))
    DBA Data Base Administrator
    DCF Dishonored Check File
    DDIA Direct Debit Installment Agreement
    DLN Document Locator Number
    DOC-ID Document Identification Number
    DOJ Department of Justice
    DPS Daily Posting Summary
    DT Deposit Ticket
    DV Debit Voucher
    ECC Enterprise Computing Center
    ECP Electronic Check Processing
    EFT Electronic Funds Transfer
    EFTPS Electronic Federal Tax Payment System
    EIN Employer Identification Number
    ELVIS Electronic Verification & Image Service
    EOD End of Day
    EOM End of Month
    EPCF Electronic Payment Control File
    ERSED Erroneous Refund Statute Expiration Date
    FPLP Federal Payment Levy Program
    FRC Federal Records Center
    GAO Government Accountability Office
    GMF Generalized Mainline Framework (pipeline processing)
    GUF Generalized Unpostables Framework
    GWA Government Wide Accounting (system has been replaced by CARS)
    HQ Headquarters
    IDRS Integrated Data Retrieval System
    IMF Individual Master File
    IPAC Intra-Governmental Payment and Collection System
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    IRS Internal Revenue Service
    ISRP Integrated Submission Remittance Processing
    JV Journal Voucher
    MF Master File
    NMF Non-Master File
    NTRR Net Tax Refund Report
    OIC Offer in Compromise
    OMB Office of Management and Budget
    OTCnet Over the Counter Network
    PCC Paper Check Conversion
    PJ Pre-Journalized
    RACR Reciprocal Accounting Control Record
    R&C Receipt and Control
    RFC Regional Financial Centers
    RPM Return Preparer Misconduct
    RRACS Redesigned Revenue Accounting Control System
    RS-PCC Remittance Strategy for Paper Check Conversion
    SCCF Service Center Control File
    SF Standard Form
    SITLP State Income Tax Levy Program
    SSN Social Security Number
    TAS Treasury Account Symbol
    TC Transaction Code
    TDA Taxpayer Delinquent Account
    TDCS Tape Data Control Sheet
    TEP Tape Edit Processor
    TIN Taxpayer Identification Number
    TOP Treasury Offset Program
    TRACS Treasury Receivable Accounting & Control System
    URF Unidentified Remittance File
    XSF Excess Collection File

Related Resources

  1. The following IRMs provide additional instructions.

    IRM NUMBER TITLE
    IRM 3.0.167 Losses and Shortages
    IRM 3.8.44 Campus Deposit Activity
    IRM 3.8.45 Manual Deposit Process
    IRM 3.8.47 Manual Deposit Process for Field Offices
    IRM 3.10.5 Batch/Block Tracking System (BBTS)
    IRM 3.10.73 Batching and Numbering
    IRM 3.17.5 Hard-core Payment Tracers
    IRM 3.17.10 Dishonored Check File (DCF) and Unidentified Remittance File (URF)
    IRM 3.17.15 Accounting Reports Analyst - Responsibilities
    IRM 3.17.21 Credit and Account Transfers
    IRM 3.17.30 SC Data Controls
    IRM 3.17.41 Accounting and Operating Reports
    IRM 3.17.46 Automated Non-Master File (Accounting)
    IRM 3.17.50 Submission Processing RRACS Procedures
    IRM 3.17.63 Redesigned Revenue Accounting Control System
    IRM 3.17.79 Accounting Refund Transactions
    IRM 3.17.80 Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations
    IRM 3.17.220 Excess Collections File
    IRM 3.17.221 Enterprise Computing Center Data Controls
    IRM 3.17.243 Miscellaneous Accounting
    IRM 3.17.244 Manual Assessments
    IRM 3.30.123 Processing Timeliness: Cycles, Criteria and Critical Dates
    IRM 21.4.5 Erroneous Refunds

References

  1. The following sections contain a glossary of forms, reports, subsidiary accounts, Treasury Account Symbols (TAS) and Agency Location Codes (ALC) used throughout this IRM.

Forms

  1. The following forms are commonly used in Revenue Accounting and will be referenced throughout this IRM.

    FORM # FORM TITLE
    Form 215-A Deposit Ticket
    Standard Form 224 Statement of Transactions
    Form 23C Manual Summary Record of Assessment
    Form 514-B Tax Transfer Schedule
    Form 784 Recap of Remittances
    Form 813 Document Register
    Form 813-A Recap of Document Registers
    Form 843 Claim for Refund & Request for Abatement
    Standard Form 1081 Voucher and Schedule of Withdraws and Credits
    Standard Form 1098 Schedule of Cancelled or Undelivered Checks
    Standard Form 1166 Voucher and Schedule of Payments
    Standard Form 1184 Unavailable Check Cancellation
    Standard Form 1185 Schedule of Unavailable Checks/ Cancellations/ Credits
    Form 1331 Notice of Adjustment
    Form 1331-B Notice of Adjustment (not on MF)
    Form 2158 Credit Transfer Voucher
    Form 2162 Summary of Assessments
    Form 2188 Voucher & Schedule of Overpayment and Overassessments
    Form 2221 Schedule of Collections
    Form 2285 Concurrent Determination of Deficiencies
    Form 2424 Account Adjustment Voucher
    Form 2859 Request for Quick and Prompt Assessments
    Form 3177 Notice of Action for Entry on MF
    Form 3210 Document Transmittal
    Form 3244 Payment Posting Voucher
    Form 3245 Posting Voucher-Refund
    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 (non-revenue receipts)
    BFS 3813 Reversal of Credit
    Form 3997 Reconciliation of General Ledger Accounts
    Form 4028 SCCF Adjustment Record (Format Code 216)
    Form 4506 Request for Copy of Tax Return
    Form 4830 IDRS Posting Document
    Form 5147 NMF-IDRS Transaction Record
    Standard Form 5515 Debit Voucher
    Form 5792 Request for IDRS Generated Refund (IGR)
    Form 6168 General Ledger Reconciliation with ECC RACR
    Form 8485 Assessment Adjustment Case Record
    Form 8758 Excess Collections File Addition

Accounting Reports and Usage

  1. The following accounting control reports can be generated on demand.

  2. Online journal research is done on an as-needed basis.

  3. RRACS reports must be retired to the FRC, as indicated in Document 12990, Records Control Schedules.

Submission Processing RRACS Reports
  1. Submission Processing reports referenced throughout this IRM.

    REPORT # REPORT NAME FREQUENCY OF REPORT
    003 DTRIAL, Daily General Ledger Trial Balance Daily
    004 MTRIAL, Monthly General Ledger Trial Balance Monthly
    006 Summary Record of Assessments Daily
    018 Historical SF 224, Statement of Transactions Monthly
    020 SF 224, Statement of Transactions Monthly
    024 Voucher and schedule of Overpayments & Over assessments Daily
    025 Form 2162 Summary of Assessments Monthly
    025A FY 2162, Summary of Assessment Certificates Issued Fiscal Year End
    051 General Ledger Account Details Monthly
    051S Single Sub Account by Account Generated on demand
    126 EFTPS Error (Reprint Only) Generated on demand
    131 Erroneous Refund Report Monthly
    132 Unapplied External Leads Monthly
    142 Credit Transfer Out Monthly
    143 EFTPS Activity Report Generated on demand
    145 SF 224 Detail report Generated on demand
    155A Identity Theft Erroneous Refund Monthly Activity Report Monthly (electronic version)
    155B Identity Theft Erroneous Refund Summary Report Monthly
    155C Identity Theft Erroneous Refund Open Cases Monthly (electronic version)
    156 Payment Over Cancellation, Erroneous Refund Report Monthly
    157 Return Preparer Misconduct Erroneous Refund Report Monthly
    576 ECP Deposit Discrepancy Support List Monthly
    577 Loss & Shortages Monthly
    1140 Deposit Activity (4900) Monthly
    DCF 03 Account 1710 transaction Register Daily
    DCF 05 DCF Applications for IMF/BMF Daily
    EOD 16 IDRS PJ Recap Daily
    EOD 1622 ID Theft Credit Transaction Report Daily
    EOD 1624 RPM Credit Transaction Report Daily
    EOD 2421 Area Office Remittance Register Daily
    GMF 15-45 Transaction Release Summary Weekly
    GUF 53-40 Unpostable Control Report Weekly
    GUF 53-42 Revenue Receipts Control Sheets-Nullified Unpostables IMF/BMF Daily
    ISRP 0542 RRPS General Ledger Account Number List-Journal Total Report Daily
    SCF 11–41 Adjustment Control Record List Items with Control Record Source Code J Daily
    SCF 11–47 Control Record Renumber Reclassification Summary Daily
    SCF 11–51 Tape Control Record List Daily
    SCF 13–40 Revenue Receipts Control Sheets (RRCS) IMF/BMF Daily
    TDA 55 Error Report Generated on demand
    TDA 5540 Run Controls Report Generated on demand
    URF 03 Transaction Register Daily
    URF 05 URF Applications for IMF/BMF Daily

    Note:

    Additional CFO RRACS reports can be found in IRM 3.17.63, Redesigned Revenue Accounting Control System.

Submission Processing Chart of Accounts

  1. The following is a chart of Submission Processing accounts that will be referenced throughout this IRM.

    Note:

    Additional Accounts maintained by CFO can be found in IRM 3.17.63, Redesigned Revenue Accounting Control System.

    ACCOUNT # ACCOUNT NAME
    1100 BMF Accounts Receivable
    1200 IMF Receivable
    1205 CADE Accounts Receivable, Inactive
    1300 Non-Tax Accounts Receivable
    1301 CADE Non-Tax Receivable, Inactive
    1321 NMF Notice (Cincinnati Only)
    1322 NMF Taxpayer Delinquent Accounts (Cincinnati Only)
    1324 NMF Taxpayer Delinquent Accounts Under Tolerance (Cincinnati Only)
    1360 NMF Installment Agreement Accounts (Cincinnati Only)
    1371 NMF Offers in Compromise (OIC) (Cincinnati Only)
    1389 NMF Suspense (Cincinnati Only)
    1510 Other Receivables, Regular
    1530 Court Case Erroneous Refunds
    1535 CI Court Ordered Restitution Erroneous Refund (Kansas City Only)
    1540 Non-Court Case Erroneous Refunds
    1543 Payment Over Cancellation Erroneous Refunds
    1545 Identity Theft Erroneous Refunds and Identity Theft Child Support Offsets
    1547 Return Preparer Erroneous Refunds
    1600 Manual Assessments, Transit Account
    1710 Dishonored Check File
    1720 Dishonored Check, Adjustments
    1810 BMF Accounts Receivable, Inactive
    1815 CADE Accounts Receivable, Inactive
    1820 IMF/CADE Accounts Receivable, Inactive
    1830 NMF Accounts Receivable, Inactive (Cincinnati Only)
    1840 Other Receivables, Inactive
    2355 Federal Court Ordered Restitution (Kansas City Only)
    4110 ECC Suspense for MF - BMF
    4120 SC Suspense for the MF - BMF
    4125 EFTPS/FPLP Suspense for MF - BMF (Ogden Only)
    4130 ECC Unpostable - BMF
    4205 SC Suspense To/From CADE, Inactive
    4210 ECC Suspense for MF - IMF/CADE
    4215 CADE ECC Suspense
    4217 CADE MFT 30 to MFT 29
    4220 SC Suspense for the MF - IMF
    4225 EFTPS/FPLP Suspense for MF - IMF (Ogden Only)
    4230 ECC Unpostable Documents - IMF
    4254 MFT 30 to MFT 29
    4420 SC Suspense for NMF
    4425 EFTPS/FPLP Suspense for NMF (Ogden Only)
    4430 Unpostable Documents - NMF (Cincinnati Only)
    4440 Assessment & Abatement Suspense - NMF (Cincinnati Only)
    4510 Pre-Payment Credits - BMF
    4520 Pre-Payments Credits - IMF/CADE
    4521 Pre-Payment Credit - Non-Tax
    4522 CADE Pre-Payment Credit - Non-Tax, Inactive
    4530 CADE Pre-Payment Credit, Inactive
    4610 Unapplied Advance Payments
    4615 IRC . 847, Special Estimated Tax Payments (Ogden Only)
    4620 Unidentified Remittances
    4625 Insolvency Suspense
    4740 Deposit Funds in Transit
    4765 EFTPS Miscellaneous Suspense (Ogden Only)
    4900 Revenue Credits in Transit to Other SP Campuses
    4910 Disbursement Loss
    4950 IMF Unallowable Deductions
    4970 Unapplied Refund Reversals
    4971 Unapplied External Leads Cincinnati and Fresno Only)
    4975 Liability DOJ Receipts (Kansas City Only)
    6001 Installment Agreement Liability
    6010 Arbitrage Rebate Liability
    6011 Arbitrage Rebate Penalty Liability
    6110 Withholding Tax Assessments - Principal
    6111 Withholding Tax Assessments - Penalty
    6112 Withholding Tax Assessments - Interest
    6120 Individual Income Tax Assessments - Principal
    6121 Individual Income Tax Assessments - Penalty
    6122 Individual Income Tax Assessments - Interest
    6130 Corporation Tax Assessments - Principal
    6131 Corporation Tax Assessments - Penalty
    6132 Corporation Tax Assessments - Interest
    6140 Excise Assessments - Principal
    6141 Excise Tax Assessment - Penalty
    6142 Excise Tax Assessments - Interest
    6150 Estate & Gift Tax Assessments - Principal
    6151 Estate & Gift Tax Assessments - Penalty
    6152 Estate & Gift Tax Assessments - Interest
    6170 CTA Tax Assessments - Principal
    6171 CTA Tax Assessments - Penalty
    6172 CTA Tax Assessments - Interest
    6180 FUTA Tax Assessments - Principal
    6181 FUTA Tax Assessments - Penalty
    6182 FUTA Tax Assessments - Interest
    6190 Previously Assessed Tax
    6191 Previously Assessed Penalty
    6192 Previously Assessed Interest
    6200 Taxpayer Accounts Transferred
    6201 Mirror Assessments
    6510 Over-Assessments Credited
    6520 Refund of Tax and Interest
    6565 Refund Cancellation Credits Allowed
    6570 Substantiated Credits Allowed
    6580 Revenue Credits Transferred To and From
    6590 Deposit Fund Credits Transferred To and from
    6600 Accounts Cleared Statute/Bankruptcy
    6700 Foreign Check Collection Cost & Miscellaneous Bank Charges
    6800 Excess Collections
    6801 Expired External Leads Cincinnati and Fresno Only)
    6900 Adjustment or Correction of Revenue Receipts
    6901 ECP Adjustments of Revenue
    6905 Identity Theft Erroneous Refund and Identity Theft Child Support Offsets Write- Offs
    6907 Return Preparer Erroneous Refund Write- Offs
    6910 Correction of Miscellaneous Revenue
    6920 Disbursement Write-Off
    6950 DOJ Civil Debt Collection Hold-back (Kansas City Only)
    7001 Unclassified EFTPS/FPLP
    7500 Undeposited Collections
    7610 Embezzlement and Thefts
    7620 Unexplained Losses
    7649 ECP Deposit Discrepancies
    7650 Deposit Discrepancies
    9998 Reversals Revenue Clearance Accountability
    9999 Revenue Clearance Accountability
Subsidiary Records and Balancing
  1. Subsidiary records that afford necessary details in support of certain general ledger accounts must be maintained, as prescribed. As a general rule, posting to subsidiary accounts will be made directly from documents or forms evidencing the transaction. This practice avoids possible inaccuracies that may arise if information is transcribed or summarized separately, and such summaries are then used for entries to the subsidiary accounts.

Accounting Subsidiaries External to RRACS
  1. The frequency of reconciliation between the subsidiary and general ledger accounts range from monthly to quarterly. In order to maintain control of the In-transit Account 1600, Form 813 (2-part) numbered in support of Form 3552 may be released weekly or daily to the SCCF. Reconciliation of this account must be performed at least monthly but, in order to facilitate balancing, it may be advantageous to reconcile it on a weekly basis.

Chart of Subsidiary Records External to RRACS
  1. The chart below lists the RRACS file records that are documented by subsidiary records, subsidiary description, and the frequency of reconciliation.

    Note:

    CFO Subsidiary Records External to RRACS can be found in IRM 3.17.63, Redesigned Revenue Accounting Control System.

    GL Acct. No. External Subsidiary Frequency
    1321 NMF Notices Monthly
    1322 NMF TDA Monthly
    1324 NMF TDA Deferral Under Tolerance Monthly
    1360 NMF Installment Agreement Monthly
    1371 NMF OIC Monthly
    1389 NMF Suspense Monthly
    1400 Tax Account Transferred Out Monthly
    1510 Other Receivable Document File Monthly
    1530 Erroneous Refunds Court Case Document File Monthly
    1535 CI Court Ordered Restitution Erroneous Refund Monthly
    1540 Erroneous Refunds Non-Court Case, Document File Monthly
    1543 Payment Over Cancellation Erroneous Refunds Monthly
    1545 Identity Theft Erroneous Refunds and Identity Theft Child Support Offsets Monthly
    1547 Return Preparer Erroneous Refunds Monthly
    1600 Assessments Pending (Form 3552) and Document File Monthly
    1710 IDRS DCF Monthly
    1720 Form 2424 Document File Monthly
    1830 53d Cases, NMF Monthly
    1840 Document File Monthly
    4120 BMF SCCF Monthly
    4125 BMF EFTPS Suspense Monthly
    4130 BMF Unpostable File Monthly
    4220 IMF SCCF Monthly
    4225 IMF EFTPS Suspense Monthly
    4230 IMF Unpostable File Monthly
    4420 NMF SCCF Monthly
    4425 NMF EFTPS Suspense Monthly
    4430 NMF Unpostable File Monthly
    4440 Form 813 Monthly
    4610 Unapplied Advance Payment Documents Monthly
    4615 Section 6077 Payment Documents Monthly
    4620 IDRS URF Monthly
    4740 Credit Transfer Voucher Monthly
    4765 Misc EFTPS Suspense Monthly
    4900 Unconfirmed Form 2158 Out Quarterly
    4910 Disbursement Loss Monthly
    4970 Document File Monthly
    4971 Document File Monthly
    4975 Document File Monthly
    6510 Form 2188, Form 3354, Form 1331B & Form 3809 Monthly
    6565 Refund Cancellation Credits Allowed Monthly
    6570 Case File Monthly
    6700 Foreign Check Collection Cost & Misc Bank Charge Records (Case File) Monthly
    6800 IDRS Excess Collection Monthly
    6801 Expired External Leads Monthly
    6905 Identity Theft Erroneous Refund and Identity Theft Child Support Offsets Write- Offs Monthly
    6907 Return Preparer Erroneous Refund Write- Offs Monthly
    6910 Correction of Miscellaneous Revenue Monthly
    6920 Disbursement Write-Off Monthly
    6950 DOJ Supporting File Monthly
    7610 Case File (Embezzlement and Theft) Quarterly
    7620 Case File (Unexplained Losses) Quarterly
    7649 Case File (ECP Deposit Discrepancy) Quarterly
    7650 Case File (Deposit Discrepancy) Quarterly
    9998 Document File Monthly
    1100, 1300,1810, 4110, 4510, 4521 BMF RACR Monthly
    1200, 1300, 1820, 4205, 4210, 4215, 4254, 4520, 4521, 4530,4531 IMF RACR Weekly/
    Monthly

Treasury Account Symbols (TAS)

  1. The following are Treasury Account Symbols referenced throughout this IRM.

    TAS CODE TAS NAME
    20-0101 Tax Class 1 - Withholding
    20-0110 Tax Class 2 - Individual Income
    20–0111 Tax Class 3 - Corporation Income
    20-0121 Tax Class 8 - Federal Unemployment Tax
    20-0130 Tax Class 7 - Railroad Retirement Tax
    20-0152 Tax Class 4 - Excise
    20-0153 Tax Class 5 - Estate and Gift
    20-1060 Forfeitures of Unclaimed Money and Property
    20-1099 Miscellaneous Forfeiture Receipt
    20-1210 Conscience Fund
    20-3220 General Fund Proprietary Receipts, Not Otherwise Classified, All Other
    20F3820 EFTPS Unclassified/Insolvency
    20F3844 DOJ IPAC Suspense
    20F3880 Budget Clearing, Refund
    20X0903 Principal Amount Refunded
    20X0904 Interest Paid on Principal Amounts Refunded
    20X5080.1 Public Debt
    20X5432.1 New Installment Agreement User Fees
    20X5432.3 Reinstated Installment Agreement User Fees
    20X5432.4 OIC User Fees
    75X6288 Child Support Receipts

Agency Location Codes (ALC)

  1. The following ALCs are used by the campuses for deposit and disbursement activities.

    CAMPUS ALC
    Andover 20-09-0800
    Atlanta 20-09-0700
    Austin 20-09-1800
    Brookhaven 20-09-1900
    Cincinnati 20-09-1700
    Fresno 20-09-8900
    Kansas City 20-09-0900
    Memphis 20-09-4900
    Ogden 20-09-2900
    Philadelphia 20-09-2800

Federal Government Accounting Requirements

  1. The Budget and Accounting Procedures Act of 1950, as amended, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency.

  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." Section 113 of Act 31 USCG. 3512 states that the head of each executive agency shall establish and maintain systems of accounting and internal control to 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 to serve 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 the accounting of Treasury in connection with the central accounting and reporting responsibilities imposed by the Secretary of the Treasury.

  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 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 as a whole, that will be responsive to executive and legislative needs.

  4. The established accounting and reporting principles, standards, and basic procedures will 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 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 audit by GAO of the tax refund transactions of the Service will be made at the location where the operations are conducted, and the accounting records are maintained.

  2. Copies of CARS reconciliation, related original refund and check cancellation voucher schedules with any required supporting documents plus other documents, such as the ALC Payment Detail listing, are to be retained in the supporting files in accordance with 44 USC. 3309.

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

    1. Original SF 1166 OCR

    2. Original SF 1098, SF 1184, (or the Control-D file, RPA4140 and RPA4240, if originals are not provided) SF 1081, or BFS 3813

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

  4. The following additional records will be made available:

    1. BMF and IMF Recaps of Assessments, Abatements and Other Post-Journalized Transactions

    2. Form 8485

    3. Form 2285

  5. Form 8485 and Form 2285 will be made available for restricted-interest cases only, and taxpayer names must be blocked out.

  6. On request by the GAO auditors, specific transcripts will be produced for individual cases selected for verification of refund interest computation. Taxpayer names must be blocked out on transcripts prior to delivery to GAO.

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

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

RRACS System Overview

  1. Redesigned Revenue Accounting Control System (RRACS) is a fully automated system used to provide accounting control for all revenue accounting transactions. The database 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.

  2. 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 the credit sides of the transaction. A journal number is assigned to each transaction. The journal number must be used by the RACS technician to cross reference the input documents with the transaction.

  3. The journal number is 15 digits signifying a unique transaction. The first three digits identify the RRACS main menu and sub-menu selections, the next eight digits are the current date, and the last four signify the sequence for that window series.

  4. The RRACS database is comprised of a variety of records that will summarize the total debit and credit amounts by account numbers.

  5. Each update to the database is by journal entry. Journal entries and automated posting records will be 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.

    Note:

    Additional information regarding the RRACS system can be found in IRM 3.17.63, Redesigned Revenue Accounting Control System.

Document Preparation

  1. Certain document preparation procedures must be performed prior to input on the RRACS system. For certain windows, a volume of source documents is used for a single input. On other windows, two or more source documents must be balanced against each other. A number of the windows are input directly from the source documents.

  2. Form 8166 has been developed for the purpose of consolidating volume source documents for a single input or for reconciling source documents when a combination of documents are used as input.

  3. Assign a number to the Form 8166. Maintain log books for these numbers. For individual windows that specify Form 8166, use the reconciliation sheet number as the Doc-Id.

  4. Use Form 8167 as a continuation sheet to Form 8166 when more space is necessary. Use the same date and number on the Form 8167.

  5. The RRACS system displays the journal numbers of each transaction when the posting to the database has been completed. These journal numbers must be used to cross-reference documents. When the reconciliation sheet is used, the journal number(s) must be recorded on the reconciliation sheet. The reconciliation sheet number may also be used as a cross-reference on the source documents in order 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.

RRACS Inventory Accounts

  1. RRACS must never contain any taxpayer information, therefore, never use TINs or any other identifying information, for Doc-Ids/case numbers, etc.

  2. On all inventory accounts, never use a DBA reversal window to reverse any action or a modification window to correct an open case. It is necessary to close and then reopen the case.

  3. On all inventory accounts that are open over 30 days, a history sheet to document actions taken should be maintained in their respective areas.

Input Windows for Submission Processing Accounts

  1. A series of input windows is provided in RRACS. Separate windows are provided for the various types of transactions. The first part of this table is for "batch" journals generated from other systems. The second part of this table is for journals from "manual" input.

    Note:

    For additional RRACS Windows refer to IRM 3.17.63, Redesigned Revenue Accounting Control System.

    WINDOW NUMBER BATCH JOURNAL TYPE AND ACCOUNTS
    100 GUF 5302 Corrected New and Nullified Unpostables - DR 4110, 4120, 4130, 4210, 4220, 4230 and CR 4110, 4120, 4130, 4210, 4220, 4230
    101 SCCF 1101 Adjustment Reclass - DR 21XX, 4120, 4220, 4420, 4620, 6540, 6800 and CR 21XX, 4120, 4220, 4420, 4620, 6540, 6800
    102 GMF 1505 TEP - DR 4110, 4120, 4210, 4215, 4220 and CR 4110, 4120, 4210, 4215, 4220
    107 IMF Recap - Semi-Annual
    108 BMF Recap - DR 1100, 1810, 1300, 21XX, 2380, 2385, 4110, 4210, 4520, 4521, 6200, 6510, 6530, 6540, 6560, 6580, 6575, 6810 and CR 1100, 1300, 21XX, 2380, 2385, 4110, 4510, 4521, 6010, 6011, 6100, 6200, 6510, 6540, 6580, 6575, 6600
    110 EFTPS Deposit - DR 2110, 2120, 2130, 2140, 2150, 2170, 2180, 2190 and CR 4125, 4225, 4425, 4765
    111 EFTPS Debit Voucher - DR 4125, 4225, 4425, 4765 and CR 2110, 2120, 2130, 2140, 2150, 2170, 2180, 2190
    112 EFTPS Reclass - DR 2110, 2120, 2130, 2140, 2150, 2170, 2180, 2190, 4125, 4225, 4425, 4765 and CR 2110, 2120, 2130, 2140, 2150, 2170, 2180, 2190, 4125, 4225, 4425, 4765
    113 EFTPS TEP- DR 4125, 4225, 4110, 4210, 4251 and CR 4125, 4225, 4110, 4210, 4251
    133 Regular Assessment
    134 Prompt Assessment
    135 Quick Assessment
    136 Jeopardy Assessment
    137 IMF Abatement
    138 BMF Abatement
    140 IDRS End of Day (EOD) - DR 21XX, 2380, 2385, 4120, 4220, 4620, 6800, 9998 and CR 1710, 21XX, 4120, 4220
    141 ANMF SC Recap - Other
    142 ANMF SC Recap - Assessment
    162 IMF Recap - DR 1200, 1300, 1550, 1820, 21XX, 2380, 2385, 4210, 4254, 4420, 4520, 4521, 4950, 6001, 6200, 6330, 6510, 6530, 6540, 6550, 6560, 6575, 6580, 6600, 6810 and CR 1300, 1550, 21XX, 2380, 2385, 4210, 4254, 4520, 4521, 4950, 6001, 6100, 6110, 6200, 6330, 6510, 6530, 6540, 6550, 6560, 6575, 6580, 6600, 6800, 6810
    170 ISRP
    171 Identity Theft Erroneous Refund
    172 Return Preparer Erroneous Refund
    173 Return Preparer Erroneous Refund Write Off
    180 Lockbox
    199 Year-End Processing
    MANUAL INPUT TYPE
    210 Deposit
    211 Confirm Deposit
    220 Debit Voucher
    221 Debit Voucher Adjustment
    236 JV Increase 20F3880
    239 JV Decrease 20F3880
    250 Deposit Reclass
    306 Loss Embezzlement & Theft
    307 Loss Unexplained
    308 Loss Deposit Discrepancy
    309 Recover Embezzle & Theft
    310 Recover unexplained Loss
    311 Recover Deposit Discrepancy
    400 Accounting Application
    402 Misc Application
    404 URF/Miscellaneous
    406 URF/Deposit Fund
    407 URF/Misc Fee
    408 URF/Refund Repay
    409 URF/Loss
    411 DCF/SCCF
    412 DCF/Misc 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 Unpostables - BMF
    428 ECC Unpostables - 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 Transfer-Out Revenue Receipt Cr Doc
    447 Confirm Credit Transfer-Out Revenue Receipt DR Doc
    448 Confirm Credit Transfer-Out Deposit Fund CR Doc
    449 Confirm Credit Transfer-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, ID Theft Erroneous Refund
    481 Erroneous Refund - Non-Court Case, Return Preparer Misconduct Erroneous Refunds, Payment-Over Cancellation Erroneous Refund
    485 Non-Payment of Erroneous Refund
    490 Clear Erroneous Refund, ID Theft Erroneous Refund W/O, Return Preparer Misconduct Erroneous Refund W/O
    498 Insolvency Recovery
    499 Revenue Clearance TRF
    541 IPAC Receipt
    610 Assessment - Regular - Current - Withholding (TC 1)
    611 Assessment - Regular - Current - Individual Income (TC 2)
    612 Assessment - Regular - Current - Corporation (TC 3)
    613 Assessment - Regular - Current - Excise (TC 4)
    614 Assessment - Regular - Current - Estate & Gift (TC 5)
    615 Assessment - Regular - Current - CTA (TC 7)
    616 Assessment - Regular - Current - FUTA (TC 8)
    620 Assessment Regular Deficiency - Withholding (TC 1)
    621 Assessment Regular Deficiency - Individual Income (TC 2)
    622 Assessment Regular Deficiency - Corporation (TC 3)
    623 Assessment Regular Deficiency Excise (TC 4)
    624 Assessment Regular 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 - Individual Income (TC 2)
    632 Assessment Quick Current - Corporation (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 Withholding (TC 1)
    641 Assessment Quick Deficiency Individual Income (TC 2)
    642 Assessment Quick Deficiency Corporation (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 Withholding (TC 1)
    651 Assessment Prompt Current Individual Income (TC 2)
    652 Assessment Prompt Current Corporation (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 Withholding (TC 1)
    661 Assessment Prompt Deficiency Individual Income (TC 2)
    662 Assessment Prompt Deficiency Corporation (TC 3)
    663 Assessment Prompt Deficiency Excise (TC 4)
    664 Assessment Prompt Deficiency Estate & Gift (TC 5)
    665 Assessment Prompt Deficiency CTA (TC 7)
    666 Assessment Prompt Deficiency FUTA (TC 8)
    670 Assessment Jeopardy Current Withholding (TC 1)
    671 Assessment Jeopardy Current Individual Income (TC 2)
    672 Assessment Jeopardy Current Corporation (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 Withholding (TC 1)
    681 Assessment Jeopardy Deficiency Individual Income (TC 2)
    682 Assessment Jeopardy Deficiency Corporation (TC 3)
    683 Assessment Jeopardy Deficiency Excise (TC 4)
    684 Assessment Jeopardy Deficiency 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
    810 Manual Assessment Regular Current Withholding (TC 1)
    811 Manual Assessment Regular Current Individual Inc. (TC 2)
    812 Manual Assessment Regular Current Corporation (TC 3)
    813 Manual Assessment Regular Current Excise (TC 4)
    814 Manual Assessment Regular Current Estate & Gift (TC 5)
    815 Manual Assessment Regular Current CTA (TC 7)
    816 Manual Assessment Regular Current FUTA (TC 8)
    820 Manual Assessment Regular Deficiency Withholding (TC 1)
    821 Manual Assessment Regular Deficiency Individual Inc. (TC 2)
    822 Manual Assessment Regular Deficiency Corporation (TC 3)
    823 Manual Assessment Regular Deficiency Excise (TC 4)
    824 Manual Assessment Regular Deficiency Estate & Gift (TC 5)
    825 Manual Assessment Regular Deficiency CTA (TC 7)
    826 Manual Assessment Regular Deficiency FUTA (TC 8)
    830 Manual Assessment Quick Current Withholding (TC 1)
    831 Manual Assessment Quick Current Individual Income (TC 2)
    832 Manual Assessment Quick Current Corporation (TC 3)
    833 Manual Assessment Quick Current Excise (TC 4)
    834 Manual Assessment Quick Current Estate & Gift (TC 5)
    835 Manual Assessment Quick Current CTA (TC 7)
    836 Manual Assessment Quick Current FUTA (TC 8)
    840 Manual Assessment Quick Deficiency Withholding (TC 1)
    841 Manual Assessment Quick Deficiency Individual Inc. (TC 2)
    842 Manual Assessment Quick Deficiency Corporation (TC 3)
    843 Manual Assessment Quick Deficiency Excise (TC 4)
    844 Manual Assessment Quick Deficiency Estate & Gift (TC 5)
    845 Manual Assessment Quick Deficiency CTA (TC 7)
    846 Manual Assessment Quick Deficiency FUTA (TC 8)
    850 Manual Assessment Prompt Current Withholding (TC 1)
    851 Manual Assessment Prompt Current Individual Income (TC 2)
    852 Manual Assessment Prompt Current Corporation (TC 3)
    853 Manual Assessment Prompt Current Excise (TC 4)
    854 Manual Assessment Prompt Current Estate & Gift (TC 5)
    855 Manual Assessment Prompt Current CTA (TC 7)
    856 Manual Assessment Prompt Current FUTA (TC 8)
    860 Manual Assessment Prompt Deficiency Withholding (TC 1)
    861 Manual Assessment Prompt Deficiency Individual Inc (TC 2)
    862 Manual Assessment Prompt Deficiency Corporation (TC 3)
    863 Manual Assessment Prompt Deficiency Excise (TC 4)
    864 Manual Assessment Prompt Deficiency Estate & Gift (TC 5)
    865 Manual Assessment Prompt Deficiency CTA (TC 7)
    866 Manual Assessment Prompt Deficiency FUTA (TC 8)
    870 Manual Assessment Jeopardy Current Withholding (TC 1)
    871 Manual Assessment Jeopardy Current Individual Inc. (TC 2)
    872 Manual Assessment Jeopardy Current Corporation (TC 3)
    873 Manual Assessment Jeopardy Current Excise (TC 4)
    874 Manual Assessment Jeopardy Current Estate & Gift (TC 5)
    875 Manual Assessment Jeopardy Current CTA (TC 7)
    876 Manual Assessment Jeopardy Current FUTA (TC 8)
    880 Manual Assessment Jeopardy Deficiency Withholding (TC 1)
    881 Manual Assessment Jeopardy Deficiency Individual Inc. (TC 2)
    882 Manual Assessment Jeopardy Deficiency Corporation (TC 3)
    883 Manual Assessment Jeopardy Deficiency Excise (TC 4)
    884 Manual Assessment Jeopardy Deficiency Estate & Gift (TC 5)
    885 Manual Assessment Jeopardy Deficiency CTA (TC 7)
    886 Manual Assessment Jeopardy Deficiency FUTA (TC 8)
    DBA ONLY
    902 Modification
    903 Reversal
    905 Adjust NTRR Line Data
    906 Undeposited Collection
    907 Deposit

Error 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, journal control already exists, etc.

    Note:

    If you receive an error code for a duplicate deposit ticket or debit voucher, research must be completed to ensure the item is truly not a duplicate. Any uncertainties should be directed to the RACS DBA or Manager.

    The system also has a window display that explains the error code. The following is a list of error conditions.

    Note:

    For additional Error Codes and descriptions refer to IRM 3.17.63, Redesigned Revenue Accounting Control System.

    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 Erroneous Journal Entries

  1. Whenever an error in journalization is discovered, supervisory authorization is required for the correcting entry to the general ledger account.

  2. The authorization must be documented and retained by the manager. The documentation should include the original journal number, the reason for the reversal, and the managerial approval.

  3. The incorrect entry should be reversed by the DBA, then re-input by the technician who made the original incorrect entry (when possible). On the reversal journal, the DBA must include the original journal number and an explanation in the message text. On the correction journal, the technician must include the original journal number and the reversal journal number, along with an explanation in the message text. To ensure adequate audit trail information, the technician must also notate (pen and ink) the reversal journal number and the correction journal number on the Daily Posting Summary (DPS) (RRACS Report - 001) next to the original journal number.

  4. Maintain a log and include all correction request, modifications and reversal journals for audit trail.

Account Transfers

  1. A Form 514-B, or equivalent prescribed document, is prepared to transfer NMF accounts to the MF, and for reinstatement of accounts previously removed from the MF and presently on the Retention file. See IRM 3.17.21, Credit and Account Transfers.

General Ledger Accounts for Account Transfers

  1. The following are the accounts associated with account transfers.

Account 1400 Tax Accounts Transferred Out
(Real Account, DR Normal Balance)
  1. This receivable account must be used to record and control amounts on NMF accounts while in the process of manual transfer to other campuses. NMF account amounts must be posted to this account when Form 514-B is prepared. Amounts will be closed from the account upon receipt of the receiving campus' acknowledgement of account transfer on Form 514-B, Part 2.

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

Account 6200
Taxpayer Accounts Transferred
(Nominal Account, DR/CR Normal Balance)
  1. This account is used to record the transfer of taxpayer accounts between campuses. The total in this account will be the net effect of transfers in and transfers out. Taxpayer accounts transferred out will be recorded as a debit to this account, transfers in will be recorded as credits.

  2. Account transfers of MF accounts are normally made automatically at ECC and reflected on the SC Recap. NMF transfers and an occasional MF transfer are made on Form 514-B, and forwarded through the mail to the receiving campus. Both types of transfer must be recorded in this account.

  3. No external subsidiary is used with this account, however, copies of the SC Recap and Form 514-B, should be maintained in a file for audit purposes.

Account 6201
Mirror Assessments
(Nominal Account, DR/CR Normal Balance)
  1. This account is used to record the transfer of mirror assessments, MFT 31. The total in this account will be the net effect of accounts transferred out, and accounts transferred in again. Account transferred out will be recorded as a debit to this account, and accounts transferred in again will be recorded as credits.

    Note:

    Background: Currently, when married taxpayers file a joint return, and one spouse (identified here as the requesting spouse) later requests relief from a portion or all of the tax, the Service freezes the joint module and forgoes collection activity on any unpaid balance until the request is investigated and resolved. This action is initiated by one of the following: Bankruptcy - when either spouse claims a bankruptcy; an OIC - when either spouse makes an offer on a liability; Tax Court - when either spouse petitions the tax court; or Innocent Spouse - when one spouse requests relief of liability in full or in part. When the issue takes years to resolve, as it does in some bankruptcy cases, the Service loses its ability to collect from the non-requesting spouse, if the Collection Statute Expiration Date has expired. In other cases, the non-requesting spouse will pay additional penalty and interest that accrued while the Service was considering the other spouse's request for relief.

  2. These transfers of MF mirror assessments are normally made automatically at ECC and reflected on the SC Recap. Line code 156 are the transfers out, and line code 143 are the re-transfers in.

  3. This account will not be reflected on an assessment certificate, since it is a mirror assessment.

  4. There is no external subsidiary record for this account.

Account Transfers Out (Form 514-B)
(RRACS Window 458)

  1. RACS will receive Form 514-B, supporting documentation and Form 813.

  2. Form 514-B must be processed in accordance with IRM 3.17.21, Credit and Account Transfers prior to input to RRACS. The Form 514-B or ANMF Transcript will be considered the source document for RRACS input.

  3. Form 514-B will be input individually using the Form 514-B number as the Doc-Id. Each transfer out must contain the NMF status or other file from which the account is being transferred.

  4. Journalize the Form 514-B.

    1. Using the RRACS 458 Window, which can be found under the Accounting Application Main Menu under Account Transfers, input the amount.

    2. The journalization will be a Debit to Account 1400 (Tax Accounts Transferred Out) and a Credit to either Account 4420 (NMF) or one of the NMF status accounts.

    3. The journal number must be stamped or written on the Form 514-B and the supporting documentation.

  5. Mail copy of Form 514-B and supporting documentation to receiving campus.

Account Transfers In (Form 514-B)
(RRACS Window 460)

  1. RACS will receive Form 514-B, and supporting documentation from initiating campus. Entries will be made from the file copy. All transfers-in are assigned a DLN.

  2. Form 514-B will be input individually using the Form 514-B number as the Doc-Id.

  3. Journalize the Form 514-B,

    1. Using the RRACS 460 Window, which can be found under the Accounting Application Main Menu under Account Transfers, input the amount.

    2. The journalization will be a Debit to Account 4420 (NMF) and a Credit to Account 6200 (Taxpayer Account Transferred).

    3. The journal number must be stamped or written on the Form 514-B and the supporting documentation.

    4. Send Form 813 to the Data Control Function for input to SCCF.

  4. Mail confirmation copy of Form 514-B back to originating campus.

  5. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal and automatic to SCCF, closing the DLN.

Account Transfers Out (Confirmed Form 514-B)
(RRACS Window 465)

  1. Originating campus will receive the confirmation copy of Form 514-B back from receiving campus for confirmation on RRACS.

  2. Confirm Form 514-B using the RRACS 465 Window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "transfer out - dr (514-B)" , input the amount.

  3. The journalization will be a debit to Account 6200 (Taxpayer Account Transferred) and a credit to Account 1400 (Tax Account Transferred Out).

    1. The journal number must be stamped or written on the Form 514-B.

  4. File and distribute accordingly.

Assessments

  1. Regulations 301.6203-1 and 301.6201-1 give the Submission Processing Campus Director authority to appoint one or more assessment officers. This appointment should not be given to a position lower than an Operation Manager. An Operation Manager may, by designation in writing appoint an assessment officer to sign the Summary Record of Assessment in the absence of the Operation Manager. The Form 23C must be certified (signed) on the assessment date and Delegation of Authority file with the certificate.

    Note:

    The Accounting Operation Managers must utilize a monthly calendar to be initialed daily after the 23C Certificate(s) have been signed. If the Assessment Officer is someone other than the Operation Manager on a specific day, the assessment officer signing the 23C Certificates should initial the calendar. On the last business day of the month, place the initialed calendar in the 23C folder.

  2. Assessments related to MF accounts are based on taxable returns, not on payments and unpaid balances. The adjusted gross tax liability for each return, and any additional assessments, are processed by the site for debit entry to the taxpayer's MF account. All payments or equivalent credits are processed for credit entry to the MF account. In conjunction with entries to the MF accounts, a SC Recap is produced, and used as the basis for input to RRACS. A Summary Record of Assessment must be produced.

  3. Assessments related to NMF accounts are based on unpaid balances and payments. Each additional assessment appears on a separate NMF account. Assessments relative to NMF accounts are based on unpaid balances. It is important, therefore, that all NMF overpaid (refund), even, and non-taxable returns be included in the block DLNs in the audit trail area of the Summary of Assessments. This action will establish a statute date.

  4. Monday is the regular established assessment date for all MF assessments. In addition, a daily Summary Record of Assessments for Manual Assessments may be prepared. Summary Records of Assessments for Monday consists of the following certificates:

    1. Regular Assessments - SC Recaps IMF, BMF, and NMF regular weekly assessments.

    2. Daily Assessments - Prompt, Quick and Jeopardy.

  5. If a Barred Assessment is found follow the procedures in IRM 25.6.1.13.2.1, Barred Statute Report (Form 9355/3999).

After Hours Assessments

  1. Each site must establish procedures for after-hours assessments. After-hours assessments include such items as imminent statutes, jeopardy and terminations that cannot be legally assessed during regular hours of the following work day. At a minimum, these procedures should include, but are not limited to, the following:

    1. Appoint after-hours assessment officers. Ensure that there is an assessment officer available at all times.

    2. Ensure appointments are current for after-hours assessment officers.

    3. Ensure that after-hours assessment officers are adequately trained to prepare a manual Form 23C, Certificate of Assessment.

    4. Provide all necessary forms and instructions for preparing a Form 23C.

    5. Have a system in place to ensure that Form 23C is given to RACS for journalization on the next business day.

    6. Provide field office personnel with a list of after-hours assessment officers. Ensure that the field office personnel have correct phone numbers for these assessment officers. Ensure that they are aware of the procedures to contact the site in their jurisdiction.

Manual Assessments

  1. Manual Assessments are prepared expeditiously to protect an Assessment from being barred by the expiration of the period of limitation, or to expedite the collection process. They can be either Master file or Non-Master File.

  2. The Accounting function will receive a Form 2859, Request for Quick or Prompt Assessment, for processing. Refer to IRM 3.17.46, Automated Non-Master File Accounting and IRM 3.17.244, Manual Assessments, for further processing procedures.

  3. Journalization information will come from the back of Form 813 for all MF Assessments and NMF daily assessments. Each Form 813 will be a separate input document. It is essential that all necessary information for input be on, or associated with, the Form 813.

  4. Journalization of assessments can be completed on a variety of RRACS windows depending upon the type of assessment (regular, quick, prompt or jeopardy), whether it is current or a deficiency, the tax class, and whether it is tax, penalty or interest. The windows that can be used range from 610 through 686 and 810 through 886. For further instructions on determining which window to use, refer to IRM 3.17.50.13.1, Submission Processing RRACS Procedures.

General Ledger Accounts for Assessments and Settlements
(Nominal Account, CR Normal Balance)

  1. This series of accounts records the assessment of tax liabilities, and the liabilities for fees, penalties, or costs for services rendered. Also included in this series of accounts are settlements of accounts other than by payment. This series of accounts is nominal and will be closed to the revenue clearance account at the end of the accounting year.

Account 1600 Manual Assessments Transit Account
(Real Account, DR Normal Balance)
  1. The balance of manual assessments may be established in the manual assessments, transit account.

  2. Manually-prepared assessments may be transferred from Account 1600 to NMF, BMF, and IMF, in accordance with schedules established by the individual campuses.

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

Account Series 6000 Assessments and Settlements
(Nominal Account, CR Normal Balance)
  1. This series of accounts records the assessment of tax liabilities, and the liabilities for fees, penalties, or costs for services rendered. Also included in this series of accounts are settlements of accounts other than by payment. These include abatements, write-offs, transfers, and clearances due to statute expiration. This series of accounts is nominal and will be closed to the revenue clearance account at the end of the accounting year.

Account 6001 Installment Agreement Liability
(Nominal Account, CR Normal Balance)
  1. This account sets up the liability for installment agreement user fees when these fees are established on the MF.

Account 6010
Arbitrage Rebate Liability
(Nominal Account, CR Normal Balance)
(Ogden Only)
  1. This account is used to summarize the total amount of assessments of non-tax revenue money. The balance of this account represents total non-tax revenue assessments for the year.

  2. These assessments will not appear on the Summary Record of Assessments.

Account 6011
Arbitrage Rebate Penalty Liability
(Nominal Account, CR Normal Balance)
(Ogden Only)
  1. This account is used to summarize the total amounts of assessments of non-tax revenue penalties. The balance of this account represents total non-tax revenue penalty assessments for the year.

  2. These penalty assessments will not be recorded on the Summary Record of Assessments.

Account 6110
Withholding Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 1 principal. The balance of this account represents total tax class 1 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 1 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6111
Withholding Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 1 penalties. The balance of this account represents total tax class 1 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 1 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6112
Withholding Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 1 interest. The balance of this account represents total tax class 1 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 1 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6120
Individual Income Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 2 principal. The balance of this account represents total tax class 2 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 2 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6121
Individual Income Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 2 penalties. The balance of this account represents total tax class 2 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 2 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6122
Individual Income Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 2 interest. The balance of this account represents total tax class 2 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 2 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6130
Corporation Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 3 principal. The balance of this account represents total tax class 3 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 3 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6131
Corporation Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 3 penalties. The balance of this account represents total tax class 3 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 3 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6132
Corporation Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 3 interest. The balance of this account represents total tax class 3 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 3 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6140
Excise Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 4 principal. The balance of this account represents total tax class 4 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 4 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6141
Excise Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 4 penalties. The balance of this account represents total tax class 4 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 4 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6142
Excise Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 4 interest. The balance of this account represents total tax class 4 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 4 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6150
Estate and Gift Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 5 principal. The balance of this account represents total tax class 5 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 5 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6151
Estate and Gift Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 5 penalties. The balance of this account represents total tax class 5 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 5 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6152
Estate and Gift Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 5 interest. The balance of this account represents total tax class 5 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 5 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6170
Carriers and Transportation Act (CTA) Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 7 principal. The balance of this account represents total tax class 7 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 7 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6171
Carriers and Transportation Act(CTA) Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 7 penalties. The balance of this account represents total tax class 7 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 7 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6172
Carriers and Transportation Act (CTA) Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 7 interest. The balance of this account represents total tax class 7 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 7 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6180
FUTA Tax Assessments - Principal
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 8 principal. The balance of this account represents total tax class 8 principal assessments for the year.

  2. All principal assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 8 assessments for the month will be summarized on Form 2162, Summary of Assessment Certificates Issued, which will become the external subsidiary record.

Account 6181
FUTA Tax Assessments - Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 8 penalties. The balance of this account represents total tax class 8 penalty assessments for the year.

  2. All penalty assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 8 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6182
FUTA Tax Assessments - Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of assessments of tax class 8 interest. The balance of this account represents total tax class 8 interest assessments for the year.

  2. All interest assessments must be recorded on Summary Record of Assessments. The Assessment Certificate is the legal document that permits collection activity.

  3. Total tax class 8 assessments for the month will be summarized on Form 2162, which will become the external subsidiary record.

Account 6190
Previously Assessed Tax
(Nominal Account, CR Normal Balance)
  1. This is used for MFT 31 mirror assessments only, and will appear on the IMF SC recaps. As a mirror assessment, this account will not be reflected on an Assessment Certificate.

Account 6191
Previously Assessed Penalty
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of previously-assessed tax (MFT 31) penalties and will appear on the IMF SC recaps. The balance of this account represents total previously-assessed tax penalty assessments for the year. As a mirror assessment penalty, this account will not be reflected on an Assessment Certificate.

Account 6192
Previously Assessed Interest
(Nominal Account, CR Normal Balance)
  1. This account is used to summarize the total amounts of previously assessed interest. The balance of this account represents the previously-assessed interest assessments for the year. As a mirror assessment interest, this account will not be reflected on an Assessment Certificate.

Account 6510
Over-Assessments Credited
(Nominal Account, DR Normal Balance)
  1. Amounts of over-assessments (abatements) of previously-assessed tax, penalty, and interest certified and credited to taxpayer accounts are recorded in this account. The account represents the total over-assessments of tax, penalty, and interest credited to taxpayer accounts during the year. Entries to this account are obtained from the SC Recaps (abatement total). They are further supported by file copies of Form 2188 ,Voucher and Schedule of Overpayment and Overassessments.

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

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

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

Summary Record of Assessments and
List of Unprocessed Assessment Certificates
(RRACS Report 006)

  1. This list identifies all unprocessed assessment certificates, and must be reviewed online daily to determine which assessment certificates must be processed.

  2. In order to ascertain the correctness of the data entered into RRACS, utilize this online information to balance the assessments to the source documents before the Summary Record of Assessment is generated.

  3. The assessment date and assessment type will be displayed for each current record that has not yet been generated. To review these assessments, select Assessment main menu, and then select the Review option.

  4. Review the information and take the necessary action to generate any summary records where the assessment date equals the current date.

  5. The summary record provides details of the assessment data by type of tax, and if the assessment was current or deficiency. Assessments are broken down into five types: Regular (R), Jeopardy (J), Quick (Q), Prompt (P) and Termination (T). Jeopardy assessments record the principal amounts against individual taxpayers. The following data can be reviewed online for each assessment type and assessment date:

    1. Tax class

    2. Items related to the tax class

    3. Tax amount

    4. Penalty amount

    5. Interest amount

    6. Identification as current or deficiency

  6. The total items, tax, penalty, and interest are summarized for total current assessments and total deficiency assessments.

  7. The current and deficiency item and amount fields related to each tax class are added together under tax class summary.

  8. If the assessment is a Jeopardy, the data related to the principal taxpayers and amounts are required. The number of principal taxpayers will be the sum of current and deficiency item counts.

  9. The audit trail is printed for each summary record. This includes the Doc-Id, DLN, or Form 8166, Revenue Accounting Control System (RACS) Input Reconciliation, recap number in the DLN column, and the account date.

    1. To generate the report, select Review from the Assessment main menu, then select the Assessment option, desired assessment type, and assessment date. Select Review again for the report to show.

    2. The report must be signed by the Assessment Officer on the date the assessment is made. The certification statement is included in the printed report. At least one person at each campus must be assigned the responsibility of reviewing all certificates for timely entry of the assessment officer's signature and date. The responsible employee must initial the certificate after validation. This review must be completed daily.

      Note:

      Daily print the Form 2162 before end of day to verify all certificates have been signed for that day.

  10. On a daily basis, ECC will electronically transmit the assessment data to ECC-MTB from the daily computer-generated SC Recap.

  11. Regular and Quick assessments may be requested through RRACS weekly. Quick assessments should be requested daily, if a specific and immediate assessment date is requested or required. Prompt assessments should be requested daily. Jeopardy and Termination assessments should be requested immediately after input to the assessment windows. Jeopardy assessment certificates generally contain assessments for only one entity.

  12. When RRACS is unavailable, all campuses must use the Form 23C, Manual Summary Record of Assessment, under Forms and Publications on the Internal Revenue Intranet or the excel version provided by HQ.

    1. Enter the detail data by type, tax class, the total amounts of current assessments of tax and penalty, and the total amounts of interest.

    2. Enter detail data by tax class for deficiency tax and penalty, interest, and item count.

    3. Total the entries on each certificate horizontally and vertically.

    4. The date of the certification and signature of the Assessment Officer are entered where indicated.

    5. List all audit trail information in Section 6 of Form 23C. This can consist of DLN, Form 8166 numbers, recap information, etc.

    6. The assessment data must be entered into RRACS as soon as possible.

Form 2162
Summary of Assessment Certificates Issued
(RRACS Report 025)

  1. This report represents a consolidation of all assessment certificates prepared each month. It provides a breakdown by tax classes for current and deficiency assessments. It also provides an audit trail of assessment certificates and principal taxpayers included in the report. All assessment certificates that were posted for the month will be listed on this report.

  2. This report will be produced during EOM processing but may be generated separately for research or statistical purposes. To generate the report, select the RRACS Report main menu, and Form 2162 from the Month End sub-menu.

Manual Procedures for a
Summary of Assessment Certificate

  1. For each tax class under current assessments print the related items, tax amount, penalty amount, and interest amount related to General Ledger Accounts 6110 through 6182, identified as current.

  2. Compute total current assessments by adding current items from all tax classes combined, current tax from all tax classes combined, current penalty from all tax classes combined, and current interest from all tax classes combined.

  3. Use the same methodology for total deficiency assessments as above.

  4. Print offshore oil data items and penalty related to General Ledger Account 6320, Offshore Oil Account.

  5. Assessment Summary - Current Month.

    1. For each tax class compute the combined totals of current and deficiency items and amounts for tax, penalty, and interest.

    2. Compute total regular assessments by combining all the current item fields (for current and deficiency) for all tax classes, except offshore oil spills. Combine current amount fields for current and deficiency tax, penalty, and interest for current and deficiency, for all tax classes except offshore oil spills.

    3. Print offshore oil spills data for current oil spill items and penalty amounts.

    4. Compute total monthly assessments by adding oil spill items and penalty amounts to total items and amounts from (6)(b).

  6. Assessment Summary - Year-to-date.

    1. Withheld individual income and FICA reports the cumulative item count and total amount.

    2. Individual income-other reports the cumulative item count and total amount.

    3. Corporate and excess profits reports the cumulative item count and total amount.

    4. Excise reports the cumulative item count and total amount.

    5. Estate and Gift reports the cumulative item count and total amount.

    6. Tax on carriers reports the cumulative item count and total amount.

    7. Federal unemployment tax reports the cumulative item count and total amount.

    8. Total yearly assessments reports the sum of cumulative item counts and amounts from all tax classes.

    9. Offshore oil spills reports the cumulative item count and penalty amount.

  7. Audit Trail.

    1. Assessment certificates list each certificate number issued for the current month. This list contains the date and sequence number, and is listed in sequence number order.

    2. Principal taxpayers lists the item count, principal tax amount, and assessment date for each Jeopardy assessment reported in the current month.

  8. For each tax class under current assessments, print the related cumulative items, tax, penalty, and interest amounts.

  9. Compute total cum assessments as follows:

    1. Items include the sum of all cumulative items from all tax classes, with the exception of oil spills.

    2. Tax includes the sum of all cumulative tax amounts from all tax classes.

    3. Penalty includes the sum of all cumulative penalty amounts from all tax classes, with the exception of oil spills.

    4. Interest includes the sum of all cumulative interest amounts from all tax classes.

  10. Use the same methodology for total deficiency assessments as above.

  11. Print offshore oil data cumulative items and cumulative penalty amounts.

  12. Assessment Summary - Fiscal year combines the cumulative deficiency and non-deficiency items, and tax, penalty, and interest amounts for and by each tax class.

    1. The total of the assessment summary-fiscal year is summarized.

    2. Offshore oil spills items and cum penalty amounts are summarized.

    3. Total fiscal year assessments are calculated. Deficiency and non-deficiency cumulative item counts for all tax classes, including oil spills, are added together. Deficiency and non-deficiency cumulative tax, penalty, and interest cumulative amounts, including oil spills, are added together.

  13. Principal tax included in this report combines the principal deficiency and non-deficiency cumulative items and tax amounts.

Correcting Certificate Errors

  1. Use the following procedures for correcting errors on the certificate:

    1. When a journal error is discovered prior to generating the certificate, the erroneous journal must be reversed by the DBA and re-input.

    2. When a journal error is discovered after the generation of the certificate, but on or prior to the 23C date (regardless if signed or not), reverse the 23C journal, and then reverse the original journal. Re-post the assessment correctly and generate a new certificate.

    3. When a journal error is discovered after the 23C date, make sure the statute date has not expired. On the current or future 23C date, post the reverse of the original journal. Then post the assessment correctly. The 23C Certificate cannot be reversed after the 23C date.

      Note:

      In all of these instances, the original posting number should be annotated in the message text of the re-input journal, for audit trail purposes.

Disclosure Requests for RRACS Report 006 - 23C Certificate

  1. A Disclosure Specialist will email or fax a 23C request to the Accounting Planning and Analysis Analyst and the Accounting contact.

    Note:

    If the Disclosure Specialist faxes the 23C request, they will also send and email to the P&A and Accounting contacts stating the fax request is coming.

  2. Accounting will perform the research and request the documents from FRC (if applicable),

  3. Accounting will email or fax the requested 23C Certificates to the Disclosure Specialist no more than 10 days from the receipt of the request.

    Note:

    If Accounting sends the documents to the Disclosure Specialist via email, the P&A Accounting analyst must be carbon copied on the email. If Accounting faxes the documents to the Disclosure Specialist, the P&A Accounting analyst must be emailed that the request has been completed.

  4. The P&A Accounting Analyst will monitor this request to ensure the timely response to the Disclosure Specialist.

Business Resumption/Disaster Recovery Plan for the Signing of 23C Assessment Certificates

  1. In the event of a furlough or shutdown, the following procedures should be followed to ensure the 23C assessment Certificates are signed in a timely manner.

    Note:

    The designated assessment officer for each campus would have to be exempt from the furlough day if it were necessary to sign a 23C Certificate and will be given different furlough day. Counsel has deemed that the Director, Submission Processing, may himself sign the 23C Certificates or he may delegate this duty but no lower than an Accounting Operation manager.

    1. If the “normal” assessment officer (Accounting Operation Manager) is signing the 23C Certificates on a furlough/shutdown, the workday prior to the furlough/shutdown the RACS Team would balance, post and print the 23C Certificates from RRACS. Prepare and give the package to the Accounting Operation Manager the workday prior to the Furlough (23C) day. The assessment officer will sign, date and record the clock time on the Furlough day and return the signed 23C Certificates to the RACS team on the next business day.

    2. If the Director, SP or his appointee, will be the assessment officer and is signing the 23C Certificates on a furlough/shutdown, the workday prior to the furlough/shutdown the RACS Team would balance, post and print the 23C Certificates from RRACS. Prepare and give the package to the Accounting Operation Manager for review. Once the Accounting Operation Manager has reviewed the Certificates and finds no errors, he/she should initial (DO NOT SIGN) and give back to RACS manager. RACS manager will ensure ALL 23C Certificates are scanned and emailed to the proper assessment officer for signature NO LATER THAN 3:00 ET on the day before the Furlough day. In the email to assessment officer, include what kind and how many Certificates there are to be signed. Request a READ receipt on your email. The assessment officer will print the scanned copies of all 23C Certificates and sign, date and record the clock time on each Certificate. The assessment officer will scan and email the SIGNED 23C Certificates back to the originator. On the next business day, the RACS team will print the scanned signed 23C Certificates and process as usual.

      Note:

      In the event that the Director, SP or his designee will be signing the assessments, the campus will be given the name of the assessment officer, in advance, that will be signing for the campus.

  2. In the event of a disaster impacting a specific campus, the following procedures should be followed to ensure the 23C assessment Certificates are signed in a timely manner.

    1. The impacted campus assessment officer will contact CFO. CFO will log into the campus RRACS system and balance, post and print the 23C Certificates for that day. Once this is complete, CFO will call the assessment officer from the campus (a list of phone numbers has been provided to CFO) and give them the information needed to prepare a manual paper 23C certificate and sign, date and record the clock time.

    2. As a last resort, if no assessment officer is available at the impacted campus, the Director, Revenue Accounting in the CFO office would sign, date and record the clock time on the 23C Certificates. Once signed, and the campus is available, CFO will scan and email the SIGNED 23C Certificates to the campus.

    3. The following backup will be used by CFO to balance:
      • Service Center Recap (CFO has access to obtain the report)
      • Form(s) 813, Document Register from AMA – will be printed by SP HQ and faxed to CFO.
      • Cincinnati Only – Form(s) 813 for ANMF. Since there is no way to obtain the backup for the ANMF assessments prior to the signing of the 23C Certificate, the backup for any ANMF Assessment on the 23C Certificate must be provided to CFO as soon as Cincinnati is able.

      Note:

      Due to the inability to obtain the backup for any ANMF assessments prior to signing the 23C Certificate, it should be signed without reviewing the ANMF backup. Once the ANMF backup is available, CFO will review the supporting documentation. If any errors are found on the 23C Certificate, CFO will notify CSC to make the necessary correction(s).

Signing of 23C Certificates on Federal Holidays

  1. RACS technician will make 2 copies of each holiday 23 Certificate, one for the Operation Manager to take home and one for the Department Manager to take home.

    Note:

    An Operation Manager may, by designation, appoint an assessment officer to sign the Summary Record of Assessment in the absence of the Operation Manager. The designation must be on file.

  2. RACS technician will place a note on each 23C Certificate reminding the assessment officer of the date for signature and give to Department Manager.

  3. The Accounting Operation Manager and/or Department Manager will review and verify that all 23C Certificates carrying the Holiday 23C date are present.

  4. On the day of the 23C signature, (e.g., the holiday), the Operation Manager will sign and date the 23 Certificates and call the Department Manager to record the time and date. If the Department Manager does not receive a call by 3:00 local time, the Department Manager will sign the 23C Certificates. The Department Manager will call the Operation Manager to record the time and date.

  5. Upon return to the office, the Operation Manager or Department Manager (whoever did not sign the 23C Certificates) will notate the date and time of assessment officers signature and also initial and date using current date for verification on the 23C Certificate. Example. Signed 7/4/14 12:00 PM verified DM 7/5/14 .

    Note:

    Verification must be notated on the actual 23C Certification.

  6. Return signed 23C Certificates to RACS technician for further normal processing.

Automated Non-Master File (ANMF)
(Cincinnati Only)

  1. ANMF is an automated system for the accounting and data control of NMF accounts.

  2. Non-Master File accounts are a collection of revenue accounting transactions whose sole purpose is to provide a means for the assessment of taxes and collection of revenue.

  3. Non-Master File is a system of accounting which provides for not only outstanding liabilities but for all types of return and tax adjustment processing. (See IRM 3.17.46, Automated Non-Master File Accounting, for additional information on NMF processing.) Specific General Ledger Accounts are used to journal NMF documents.

NMF General Ledger Accounts

  1. The following are the accounts associated with Non-Master File.

Account 1321 NMF Notice
(Real Account, DR Normal Balance)
  1. This receivable account will record all of those taxpayer accounts that are maintained on ANMF. These include assessments of tax, penalties or other additions to tax, and interest assessed. Payments and other credits to these taxpayer accounts will also be recorded in this account.

Account 1322 NMF Taxpayer Delinquent Accounts Deferral (TDA)
(Real Account, DR Normal Balance)
  1. If the taxpayer fails to pay the previous notices, the accounts are then maintained in the TDA status. NMF accounts are the external subsidiary records to Account 1322.

Account 1324 NMF Taxpayer Delinquent Accounts
Deferral Under Tolerance
(Real Account, DR Normal Balance)
  1. These TDA accounts meet the deferral criteria of $24,999.99 as established by Collection. Collection activity is held in abeyance until determined otherwise. NMF accounts are the external subsidiary records to Account 1324.

Account 1360 NMF Installment Agreement Accounts
(Real Account, DR Normal Balance)
  1. Taxpayer accounts are maintained in installment agreement status until they have satisfied their tax liability. NMF accounts are the external subsidiary records to Account 1360.

Account 1371 NMF Offers In Compromise (OIC)
(Real Account, DR Normal Balance)
  1. Taxpayer NMF accounts are maintained in OIC when a proposal for settlement of a tax liability is less than previously assessed. NMF accounts are the external subsidiary records to Account 1371.

Account 1389 NMF Suspense
(Real Account, DR Normal Balance)
  1. Taxpayer NMF accounts are maintained in IDRS TDA suspense when an adjustment claim is pending. NMF accounts are the external subsidiary records to Account 1389.

Account 1830 NMF Accounts Receivable, Inactive
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record NMF taxes receivable items determined to be uncollectible, or on which collection activity has been suspended due to taxpayer's inability to pay. Items in this account may subsequently be reopened for collection activity. Overpayments from other periods or MFTs may be offset to satisfy outstanding items in this account.

  2. Items in this account will be closed to the accounts cleared, statute account, upon expiration of the Collection Statute.

  3. External subsidiary record is the file of currently not collectible (53'd) NMF accounts.

Account 4420 SC Suspense for NMF
(Real Account, DR/CR Normal Balance)
  1. This liability account is a suspense account for NMF, and will be used to record and control items received by the campus for processing to the NMF accounts. The amounts of debits and credits will be cleared from this account upon application of the items to the NMF Account.

  2. External subsidiary record is NMF SCCF file.

Account 4430 Unpostable Documents - NMF
(Real Account, DR/CR Normal Balance)
  1. This is a liability suspense account for NMF unpostable documents. NMF documents are classified as unpostable when no NMF account is located in the ANMF database to post the document.

  2. The external subsidiary records are the file of unposted NMF documents pending research.

Account 4440 Assessment and Abatement Suspense - NMF
(Real Account, DR/CR Normal Balance)
  1. This liability account is to control NMF assessments and abatements that are post-journalized to the NMF accounts. It is also used to control items established on the SCCF files.

  2. NMF assessment and abatement documents are numbered with DLNs that carry a 47 or 54 doc code and cannot be established on SCCF. These documents are input to the ANMF system and post-journalized.

  3. This account is supported by the related Form 813 pending the posting of the individual documents to the NMF account. This pending file is the external subsidiary record for Account 4440.

Account 6520 Refund of Tax and Interest - NMF
(Nominal Account, DR Normal Balance)
  1. This account summarizes the net amounts of NMF refunds certified during the year. The balance in Account 6520 represents the overpayment of taxes, penalties, or interest certified for refund, less check cancellations, or repayments of such refunds.

  2. Credit balances from NMF accounts will not be included in this account when refunded, however, interest computed on those refunds will be included.

  3. There is no external subsidiary record for this account.

Account 6600 Accounts Cleared Statute/Bankruptcy
(Nominal Account, DR/CR Normal Balance)
  1. This account is used to record and summarize the clearance of outstanding tax liability balances when the Collection Statute has expired. It will also record the clearance of outstanding tax liability discharged by bankruptcy.

  2. MF accounts will be summarized and recorded in this account from the SC Recap. NMF accounts will be reviewed at least once yearly to determine the accounts on which the statute has expired. This review will include those accounts in inactive status.

  3. There is no external subsidiary record for this account.

NMF Block Control

  1. There are two screens on ANMF designed for RACS use only:

    1. The Form 813 Block Control screen - the major control for all items entered into ANMF.

    2. The update journalized RRACS Recap screen - used to record all journalized NMF recaps generated from ANMF, and the RRACS journal number.

  2. All blocks of documents that are either pre-journalized or post-journalized will be input to the ANMF Form 813 Block Control screen. The only exceptions are entity changes, non-remit NMF extensions of time to file, transfers-in, and old accounts (ULC's). See IRM 3.17.46, Automated Non-Master File Accounting for entry information. The listings generated through ANMF associated with input through the two screens above are:

    1. NMF Block Listing

    2. NMF Unprocessed Block List

    3. Report of Blocks-out-of-Balance

    4. NMF Error Register

    5. Recap of journalized RRACS Summaries

    Note:

    For detail information of NMF listing refer to IRM 3.17.46, Automated Non-Master File Accounting.

NMF Daily Assessments

  1. Daily assessments are made to protect the assessment from being barred by the statute of limitations or to expedite the collection process. The RACS function will receive the Form 2859, in most cases via a fax from a Revenue Officer.

  2. For Jeopardy/Termination assessments only, a separate Form 813 and DLN is prepared. Multiple assessments against the same taxpayer can be included on the same Form 813. In some instances assessments may be telephoned to the site for immediate assessment. Phone requests must furnish the following minimum information:

    1. Affirmative statement that the area director has approved Form 2644, Recommendation for Jeopardy/Termination Assessment

    2. Name, address, and TIN

    3. Type of tax and taxable period

    4. Amount of tax, interest, and all applicable penalties to be assessed

    5. Amounts of payments, if any, and balance due

    6. Types of assessment - Quick, Prompt, Jeopardy or Termination

    7. Appropriate abstract number

    8. Transaction codes

  3. The RACS function will assign a DLN, prepare Form 813, journalize assessments through RRACS, enter the Form 813 information into ANMF system using the Form 813 Block Control screen, and stamp Form 813 with the journal number and the 23C date. The account period in RRACS for the assessment should agree with the 23C date.

    Example: July 1 assessment date should be journalized in July account period. ANMF processes assessments using current month while RRACS journals according to the 23C date. This causes reconciling items between the ANMF system and RRACS. RACS should provide a copy of Form 8166, or Form 813, showing the posting account period to NMF for balancing purposes.

  4. Journalization of NMF daily assessments can be completed on a variety of RRACS windows depending upon the type of assessment (quick, prompt, jeopardy or termination), whether it is current or a deficiency, the tax class, and whether it is tax, penalty or interest. The windows that can be used range from 610 through 686. For further instructions on determining which window to use, refer to IRM 3.17.50.13.1, Submission Processing RRACS Procedures.

  5. Summary Record of Assessment will be signed and dated by the assessment officer. The requesting office will be informed of the date of signature (23C date) and the DLN of the assessment.

  6. RACS will forward the Form 813 and the related documents to the NMF function for input to ANMF through the original assessment - daily screen.

NMF Weekly Assessments

  1. If the statute of limitations is not imminent or no specific immediate assessment date is requested or required, assessments will be made as a weekly assessment. Recaps with a 23C date, six days or fewer into the new month, will be input as prior month.

  2. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and include the 23C date on Form 813.

  3. RACS will forward the Form 813, and the related assessment documents, to NMF using the NMF block list as the transmittal.

  4. After NMF batch journalization, journal number 142, RACS will stamp the Form 813 with the journal number. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

NMF IRC 7804(C) Assessments
(RRACS Assessment Window)

  1. IRC 7804(c) provides for assessments to be made against officers and employees of the Internal Revenue Service who either embezzle or fail to properly handle and account for money received in connection with the internal revenue laws. These assessments will be handled under NMF procedures.

  2. IRM 3.0.167, Losses and Shortages, contains more information regarding 7804(c) assessments.

  3. Prior to NMF assessment, the embezzled amount will have been journaled to Account 7610 and a letter of notice and demand sent.

  4. If payment is not received within 30 days of the notice, a copy of the letter of notice and demand will be forwarded to RACS for prejournaling the assessment from the responsible accounting campus maintaining Account 7610. The letters will be used as the source document.

  5. Journalization of assessments can be completed on a variety of RRACS windows depending upon the type of assessment (regular, quick, prompt or jeopardy), whether it is current or a deficiency, the tax class, and whether it is tax, penalty or interest. The windows that can be used range from 610 through 686. For further instructions on determining which window to use, refer to IRM 3.17.50.13.1, Submission Processing RRACS Procedures.

  6. RACS will input the Form 813 information into the ANMF Block Control screen and forward the Form 813 and assessment document(s) to NMF for further processing.

  7. This journal will become part of the daily 23C Certificate.

Debit and Credit Transfers
(RRACS Window 400)

  1. Form 2424, Account Adjustment Voucher and Form 3809, Miscellaneous Adjustment Voucher, with related Form 813 are received for manual transfers. Transfers can be made between BMF Account 4120, IMF Account 4220, and NMF Account 4420. When transfers are made through IDRS, the recap from IDRS will be treated as a Form 2424 or Form 3809, as applicable. Separate transfers into like batches, such as IMF to NMF, BMF to NMF or NMF to IMF, etc.

    1. Review each Form 2424/3809 for completeness. For the NMF side, ensure an ANMF transcript is attached and a Trace ID is present.

      Note:

      All Forms 2424 prepared by Accounting must have a manager's signature.

    2. All forms in one DLN block should balance to the Form 813.

    3. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, DLN and money amount.

  2. Journalize the Form 2424 or Form 3809.

    1. Using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications, input the total amount.

    2. The journalization will be a Debit to either Account 4120 (BMF), 4220 (IMF) or 4420 (NMF) and a Credit to either Account 4120 (BMF), 4220 (IMF) or 4420 (NMF) depending on the documents.

  3. The journal number must be stamped or written on all supporting documentation.

    1. Send Form 813 to the Data Control Function for input to SCCF.

    2. Forward Form 813, Part 1, and documents for MF to Batching for processing.

    3. RACS will input the Form 813 information of the NMF documents into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal and automatic to SCCF, closing the DLN.

    4. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

  4. If manual journalization is needed, NMF will route the recap to RRACS for input.

    1. Journalize the NMF recap using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications.

    2. The journalization will be a Debit to either Account 4420 (NMF), Account 1321,1322, 1324, 1360, 1371, 1389 or 1830 and a Credit to either Account 4420 (NMF), Account 1321,1322, 1324, 1360, 1371, 1389 or 1830 depending on the recap.

    3. Reclassify, if necessary, using a 250 window.

  5. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

NMF Subsequent Transactions Debits and Credits
(RRACS Window 400)

  1. RACS will receive various posting documents with a Form 813. Ensure first journalization has been completed.

  2. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal and automatic to SCCF, closing the DLN.

  3. RACS will then input the 141 journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

  4. If manual journalization is needed, NMF will route the recap to RACS for input.

  5. Journalize the NMF recap using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications.

  6. Depending on the type of document, the journalization will be as follows :

    1. Debit document - debit either Account 1321,1322, 1324, 1360, 1371, 1389 or 1830 and credit Account 4420, NMF.

    2. Credit document - credit either Account 1321,1322, 1324, 1360, 1371, 1389 or 1830 and debit Account 4420, NMF.

    3. Transcribe or stamp journal identification number on related documents.

    4. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

    5. Distribute documents accordingly.

  7. Debits/Credits from NMF Unpostables Account 4430 will be processed using normal procedures.

    1. RACS will receive various posting documents with a Form 813. Ensure first journalization has been completed and documents have been distributed accordingly.

    2. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal.

    3. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

NMF Abatements/Form 2188
(RRACS Window 400)

  1. RACS will receive scheduled Form 1331 or Form 1331-B with Form 813 and Form 2188.

  2. Input Form 813 data to ANMF Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal as a debit to Account 4440 (Assessment and Abatement Suspense) and a credit to an NMF Status.

  3. If manual journalization is needed, use a 400 Window under Accounting Applications.

  4. Transcribe or stamp journal identification number on related Form 1331, NMF recap, or Form 8166 for audit trail.

  5. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

  6. Transfers from Manual Assessment, Transit Account 1600 may be required. The unpaid balance of all manual assessments is initially established in Account 1600.

    1. Input Form 813 data to ANMF Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal.

    2. Transcribe or stamp journal identification number on source document for audit trail.

    3. RACS will then input the journal number to ANMF using the UPDATE Journal screen

Transfers Of NMF Abatement Credits to MF
(RRACS 400 Window)

  1. Journalize transfer of NMF abatement credits to the MF suspense accounts. Form 2188 occasionally have Form 2424 or Form 3809 attached for transfer of the abatement credits to a MF account.

    If Then
    Form 2424 Journalize using a 400 window, and set up on SCCF. Debit Account 4420 and credit applicable MF suspense account.
    Work back of NMF Form 813, Part 2, and input to post on NMF TDCS. Journalize as debit to Account 4440 and credit to Account 4420.
    Form 3809 Journalize as a debit to Account 4440, credit to applicable MF suspense account. Set up MF DLN on SCCF and input document to post credit to taxpayer's MF account.

NMF Accounts Written-Off
(RRACS Window 400)

  1. NMF accounts can be written off systemically or manually if the accounts meet certain criteria.

    1. Small credits (less than $1.00) - posts with TC 607.

    2. Small debits (less than $5.00) - posts with TC 606.

    3. Expired Collection Statute accounts except Account 1371 and Account 1389 are systemically written off to Account 6600.

  2. Systemically written off accounts are completed weekly and the journal will be automatic to the RRACS system with a 141 journal.

    1. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

  3. For manually written off accounts, RACS will receive a posting document (e.g., Form 3177, Form 53, Form 5147)

    1. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the documents to the NMF function for input to ANMF. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal.

    2. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

  4. If manual journalization is needed NMF will route the recap to RACS for input.

  5. Journalize the NMF recap using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications.

  6. Depending on the type of write-off, the journalization will be as follows :

    1. Small Debits Cleared - Debit Account 6540 and credit not limited to any one NMF account.

    2. Small Credits Cleared - Credit Account 6540 and debit not limited to any one NMF account.

    3. Status 53 - Debit Account 1830 and Credit Account 13XX NMF Accounts Receivable.

    4. Reversal of Status 53 - Debit Account 13XX and Credit Account 1830.

    5. NMF Account Statute cleared - Debit Account 6600 and Credit Account 1830.

    6. Reversal of NMF Account Statute Cleared - Debit Account 1830 and Credit Account 6600.

  7. RACS will then input the journal number to ANMF using the UPDATE Journal screen.

NMF Applications From Dishonored Check File
(RRACS Window 400)

  1. RACS will receive the DCF 03 run, which may contain NMF documents.

  2. NMF applications from the DCF will generate Form 4830.

  3. RACS will receive Form 4830 with Form 813.

  4. Balance Form 813 to DCF 03, Transaction Register of NMF applications.

  5. Journalize Form 4830.

    1. Using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications, input the total amount.

    2. The journalization will be a Debit to 4420 (NMF) and a Credit to 1710 (Dishonored Check).

      Note:

      All DLNs for current fiscal year must be reclassed as a Debit 2110 and a Credit to the revenue receipt tax class.

    3. The journal number must be stamped or written on the DCF 03 run and the supporting documentation.

  6. RACS will input the Form 813 information into ANMF using the Block Control screen and route the documents to the NMF function for input to ANMF.

  7. Route Form 813 to Data Control for input to the SCCF.

  8. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal and automatic to SCCF, closing the DLN.

  9. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

Reversal of Erroneous Abatement

  1. When it has been determined that an account has been erroneously abated and the period for correcting it on IDRS has expired, the case is routed to the Statute function for controlling and monitoring purposes. Accounting will receive a request for the reversal of an erroneous abatement from Statute. See IRM 25.6, Statute of Limitations and IRM 3.17.46, Automated Non-Master File Accounting for additional information on processing by Statute and NMF.

CADE - Customer Account Data Engine

  1. CADE stopped processing transaction data as of the end of Cycle 201124. All individual taxpayer accounts have been returned to the Individual Master File (IMF) and effective January 2012, IMF began processing all IMF transactions under the CADE 2 processing time line with daily processing. All general ledger activity is included under the IMF general ledger accounts.

CADE Accounts Receivable

  1. The following accounts are associated with CADE.

  2. The account series generally consists of 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 results of tax assessments against the various tax classes.

Account 1200 IMF Accounts Receivable
(Real Account, DR Normal Balance)
  1. The net total of this receivable account will represent the total taxes assessed and unpaid on the IMF. Included in this account are individual taxpayer accounts in notice status, installment status, TDA status, and those individual taxpayer accounts where collection has been temporarily suspended by a hold code.

  2. External subsidiary records are those taxpayer accounts on MF, in debit-balance status.

  3. Data input will be updated by electronic transmission.

Account 1205 CADE Accounts Receivable - Inactive
(Real Account, DR Normal Balance)
  1. The net total of this receivable account will represent the total taxes assessed and unpaid on the CADE file. Included in this account are individual taxpayer accounts in notice status, installment status, TDA status and those individual taxpayer accounts where collection has been temporarily suspended by a hold code.

  2. External subsidiary records are those taxpayer accounts on CADE, in debit-balance status.

  3. Data input will be updated by electronic transmission.

Account 1301 CADE Non-Receivables - Inactive
(Real Account, DR Normal Balance)
  1. The net total of this receivable account will represent non-tax monies posted on CADE that have an outstanding module balance.

  2. Data input will be updated by electronic transmission.

Account 1815 CADE Accounts Receivable - Inactive
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record CADE taxes receivable items determined to be uncollectible, or where collection activity has been suspended due to taxpayer's inability to pay. The account also includes items which have been administratively determined too small to warrant collection activity.

  2. Items in this account may subsequently be re-opened for collection activity if taxpayer's financial status changes. Refunds for subsequent periods may be offset automatically to satisfy outstanding items in this account.

  3. External subsidiary records are those items on CADE marked with the uncollectible status code.

  4. Account 1815 will be updated by electronic transmission.

Account 4205 CADE in Transit
CADE to MF-IMF - Inactive
(Real Account, DR/CR Normal Balance)
  1. This is a suspense account for items being returned from CADE to Current Processing Environment (CPE) IMF. In the future this will also be used for initialization of items going from CPE to CADE.

Account 4522 CADE Pre-Payment CR Non-Tax - Inactive
(Real Account, CR Normal balance)
  1. This account represents the sum total on non-tax accounts with credit balances on CADE. Included in this account are individual accounts with an outstanding balance due.

  2. No external subsidiary record is used.

  3. The account will be updated by electronic transmission.

Account 4530 CADE Pre-Payment CR - Inactive
(Real Account, CR Normal balance)
  1. Recorded in this liability account is the sum total of all those IMF taxpayer modules that are in credit-balance status. Modules are normally in credit balance status due to pre-payments by estimated tax payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

  2. For the purpose of this account, the term pre-payment credits is defined to include all those credit amounts in a module where there is no assessment or debit amount equal to or greater than the credit.

  3. No external subsidiary record is used.

  4. The account will be updated by electronic transmission.

Credit Transfers

  1. Credit transfers between NMF and MF accounts, and NMF to NMF, within the same campus, will be accomplished by using either a Form 2424 or Form 3809.

  2. Credit transfers of NMF credits to NMF campus will be accomplished by using a Form 2158. Form 2158 has a maximum processing cycle of six workdays from the date received in accounting, per IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.

General Ledger Accounts for Credit Transfers

  1. The following are the accounts associated with Credit Transfers.

Account 4740 Deposit Funds in Transit
(Real Account, CR Normal Balance)
  1. This liability account will be used to control deposit fund items in the process of being transferred to other campuses. Deposit fund items determined proper for transfer will be recorded in this account upon preparation of Form 2158.

  2. Credit transfers remain the accountability of the transfer campus until a receipted copy of the transfer is received and recorded. A maximum processing cycle of six workdays, per IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates, has been established, where confirmation should be received and posted. This required time line will be especially beneficial for fiscal-year-end closing. Credit transfer may not be rejected by transferee campus. If transfer is not acceptable, re-transfer on Form 2158.

  3. This account is supported by individual records in the database file marked with the transfer indicator awaiting confirmation. These items in the database make up the external subsidiary record for Account 4740 within RRACS. Externally, this account will be supported by a Form 2158.

    Note:

    A special effort must be made to clear the items in Account 4740 before fiscal year end.

Account 4900 Revenue Credits in Transit
to Other Campuses
(Real Account, CR Normal Balance)
  1. This liability account must be used to record amounts of revenue receipt credits in process of transfer to other offices for application to taxpayer accounts. The balance in this account represents the total of revenue credits in transit on Form 2158, receipt of which has not been acknowledged by the transferee offices.

  2. Credits transferred to other campuses remain the accountability of the transferrer campus. Credit transfers may not be rejected by transferee campus. If transfer is not acceptable, re-transfer on Form 2158. Per IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates, a maximum processing cycle of six workdays (from the date received in Accounting) has been established, by which time confirmation should be received and posted. This required time line will be especially critical for fiscal year-end closing.

    Note:

    A special effort should be made to clear the items in Account 4900 before fiscal year end.

  3. Externally this account will be supported by a suspense file consisting of copies of Form 2158 identifying each credit being transferred.

Account 6580 Revenue Credits Transferred To and From
(Nominal Account, DR/CR Normal Balance)
  1. This account is used to record the transfer of revenue credits between two separate campuses. Credit may be transferred to MF either manually by use of Form 2158 or systemically.

  2. Transfers on Form 2158 will be initially recorded in the In-Transit Account 4900 in the transferrer campus. These transfers will be recorded in Account 6580 of the transferrer campus upon acknowledgement of receipt by the transferee campus. Upon receipt, transferee campus will record the transfer in Account 6580.

  3. Automatic transfers between master file accounts will be reported on the SC Recap, and recorded in Account 6580, in both the transferrer and the transferee campus, upon receipt of the SC Recap.

  4. Transfers are recorded as a credit to this account by the transferrer campus, and a debit to this account by the transferee campus.

Account 6590 Deposit Fund Credit Transferred To and From
(Nominal Account, DR/CR Normal Balance)
  1. This account is used to record accomplished transfers of deposit fund credits between two separate campuses on Form 2158. Transfers of deposit fund credits will be initially recorded in Account 4740 by the transferrer campus, and moved to this account upon acknowledgement by the transferee campus. Transferee campus will record the transfer in this account upon receipt.

  2. Transfer will be recorded as a credit to this account by the transferrer campus, and a debit to this account by the transferee campus.

Credit Transfer Out Report
(RRACS Report 142)

  1. This report tracks revenue receipts in transit to campuses through Account 4900, by Document-ID and by debits and credits. The Document-ID format is XXXX-XX-XX-XX. The first four digits are the sequence number, the fifth and sixth digits are the campus transferred to, the seventh and eighth digits is the year, and the ninth and tenth digits are the campus it is transferred from. See IRM 3.17.21, Credit and Account Transfers, for further information.

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

Credit Transfers-Out (Form 2158)
(RRACS Window 435/436/437/438)

  1. Credits and debits applicable to taxpayer accounts in other campuses are often received. Credits and debits on IMF or BMF are offset in the master file posting runs and journalized systemically from the SC Recap. Available credits and debits not on master file will be transferred on Form 2158, Credit Transfer Voucher.

    Note:

    Due to fiscal year end, the campuses should not initiate a credit transfer (Form 2158) after September 15th. For more information see IRM 3.17.21.4, Credit Transfers between Campuses.

  2. Source documents for credit/debit transfers may include, but is not limited to the following documents:

    1. Form 3244, Payment Posting Voucher

    2. Form 2424, Account Adjustment Voucher

    3. Form 3809, Miscellaneous Adjustment Voucher

    4. Form 1331, Notice of Adjustment

    5. Form 4830, IDRS Multi-purpose Posting Document

    6. URF 03 run

    7. DCF 03 run

    8. Various subsequent transaction documents

  3. RACS will receive a Form 2158, with supporting documentation. The Form 2158 must contain which account the debit or credit transfer is coming from and a Trace ID number.

  4. The Serial Number of the Form 2158 will be used as the Doc-Id on RRACS.

  5. The journalization will vary depending upon whether the document is credit or debit money.

  6. For a credit transfer out, using the RRACS 435 Window, which can be found under the Accounting Application Main Menu, Credit Transfer Out, input the amount.

    1. The journalization will be a Debit to either 1710 (Dishonored Checks), 1321,1322, 1324, 1360, 1371, 1389 or 1830 (NMF Statuses), 4420 (NMF), 4430 (NMF Unpostables), 4620 (Unidentified), 6310 (Miscellaneous Fees), 6400 (Miscellaneous Revenue Collections) or 6800 (Excess Collections) and a Credit to 4900 (Revenue Credits In Transit to Other Campuses).

  7. For a debit transfer out, using the RRACS 436 Window, which can be found under the Accounting Application Main Menu, Credit Transfer Out, input the amount.

    1. The journalization will be a Debit to 4900 (Revenue Credits In Transit to Other Campuses) and a Credit to either 1710 (Dishonored Checks), 1321,1322, 1324, 1360, 1371, 1389 or 1830 (NMF Statuses), 4420 (NMF), 4430 (NMF Unpostables), 4620 (Unidentified), 6310 (Miscellaneous Fees), 6400 (Miscellaneous Revenue Collections) or 6800 (Excess Collections).

  8. Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation. Send documents to receiving campus.

  9. If the transfer is from the deposit funds (Offer in Compromise, Seized Property and Miscellaneous Deposit Funds), the deposit fund document number must be input. This number must match the deposit fund record in the gaining campus.

  10. For a credit deposit fund transfer out, using the RRACS 437 Window, which can be found under the Accounting Application Main Menu under Credit Transfer Out, input the amount.

    1. The journalization will be a Debit to either 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds) and a Credit to 4740 (Deposit Funds In Transit).

  11. For a debit deposit fund transfer out, using the RRACS 438 Window, which can be found under the Accounting Application Main Menu under Credit Transfer Out, input the amount.

    1. The journalization will be a Debit to 4740 (Deposit Funds In Transit) and a Credit to either 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds).

  12. Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation. Send documents to receiving campus.

Credit Transfers-In (Form 2158)
(RRACS Windows 441/442/443/444)

  1. RACS will receive Form 2158, Part 3, from other campuses. Form 2158 must include a Trace ID. Form 2158 is normally used to transfer NMF credits between campuses. In some cases, abatements, debits and deposit funds are also transferred.

  2. The Serial Number of the Form 2158 will be used as the Doc-Id on RRACS.

  3. The journalization will vary depending upon whether the document is credit or debit money.

  4. For a credit transfer in, using the RRACS 441 Window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

    1. The journalization will be a Debit to Account 6580 (Revenue Credit Transferred To and From) and a Credit to either Account 4420 (NMF), 6310 (Miscellaneous Fees), or 6400 (Miscellaneous Revenue Collections).

  5. For a debit transfer in, using the RRACS 442 Window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

    1. The journalization will be a Debit to either Account 4420 (NMF), 6310 (Miscellaneous Fees), or 6400 (Miscellaneous Revenue Collections) and a Credit to Account 6580 (Revenue Credit Transferred To and From).

  6. Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation.

  7. If the transfer is to the deposit funds (Offer in Compromise, Seized Property and Miscellaneous Deposit Funds), the deposit fund document number must be input. This number must match the deposit fund record already established on RRACS.

  8. For a credit deposit fund transfer in, using the RRACS 443 Window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

    1. The journalization will be a Debit to Account 6590 (Deposit Fund Credit Transferred To and From) and a Credit to either Account 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds).

  9. For a debit deposit fund transfer in, using the RRACS 444 Window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

    1. The journalization will be a Debit to either Account 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds) and a Credit to Account 6590 (Deposit Fund Credit Transferred To and From).

  10. Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation.

Credit Transfer-Out (Confirmed Form 2158)
(RRACS Windows 446/447/448/449)

  1. Originating campus will receive the confirmation copy of Form 2158 back from receiving campus for confirmation on RRACS. The RACS function will receive confirmed Form 2158, both revenue receipt and deposit fund transfers. Form 2158 cannot be rejected. If credit cannot be processed in the receiving campus, re-transfer on a new Form 2158 per IRM 3.17.21, Credit and Account Transfers.

  2. The Serial Number of the Form 2158 will be used as the Doc-Id on RRACS.

  3. The journalization will vary depending upon whether the document is credit or debit money.

  4. For a credit confirmation, using the RRACS 446 Window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Rev Rec CR 2158" , input the amount.

    1. The journalization will be a debit to Account 4900 (Revenue Credits in Transit To Other Campuses) and a credit to Account 6580 (Revenue Credit Transferred To and From).

  5. For a debit confirmation, using the RRACS 447 Window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Rev Rec DR 2158" , input the amount.

    1. The journalization will be a debit to Account 6580 (Revenue Credit Transferred To and From) and a credit to Account 4900 (Revenue Credits in Transit To Other Campuses).

  6. For a credit deposit fund confirmation, using the RRACS 448 Window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Deposit Fund CR 2158" , input the amount.

    1. The journalization will be a debit to Account 4740 (Deposit Funds in Transit) and a credit to Account 6590 (Deposit Fund Credit Transferred To and From).

  7. For a debit deposit fund confirmation, using the RRACS 449 Window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Deposit Fund DR 2158" , input the amount.

    1. The journalization will be a debit to Account 6590 (Deposit Fund Credit Transferred To and From) and a credit to Account 4740 (Deposit Funds in Transit).

  8. Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation.

Department of Justice (DOJ)
(Kansas City Only)

  1. The Kansas City Campus receives and processes monies collected through the Department of Justice (DOJ) as a result of court actions and IRS referrals to DOJ for collection.

  2. Intra-Governmental Payment and Collection (IPAC) provides a standardized interagency fund transfer mechanism for federal program agencies. Monies received by DOJ as a result of civil litigation are transferred to the IRS via an IPAC 1081, Voucher and Schedule of Withdrawals and Credits. A detailed listing to support transfer of funds is mailed to IRS by DOJ along with the individual payments comprising the total amount transferred via IPAC 1081.

General Ledger Accounts for DOJ

  1. The following accounts are used to process IPAC receipts and checks from the Department of Justice.

Account 2355 Federal Court Ordered Restitution
(Nominal Account, DR Normal Balance)
(TAS 20-3220) (Kansas City Only)
  1. This receipt account represents monies collected for court-ordered restitution of fines, penalties and court costs. This also includes court-ordered restitution in excess of assessable amount. These payments should be received with information identifying into which category they fall.

  2. All payments will be journalized and transferred with the supporting documentation to Kansas City Accounting function.

Account 2915 DOJ Receipts
(Real Account, DR Normal Balance)
(TAS 20F3844) (Kansas City Only)
  1. All DOJ IPAC receipts will be reflected in Account 2915.

  2. IPAC amount is reported directly to CARS under TAS 20F3844.

  3. On the application window, reclassification is necessary from Account 2915 to the account series 21XX, 23XX, 24XX, and 7002.

  4. Due to a two year statute, BFS has determined that TAS 20F3855.11 is not the proper TAS to hold the DOJ transactions. The receipts will be reported under TAS 20F3844 to track these transactions separately.

Account 4975 Liability DOJ Receipts
(Real Account, CR Normal Balance)
(Kansas City Only)
  1. This liability account is used to control unapplied items from DOJ, until research can be accomplished to determine appropriate application or reversal to DOJ. These accounts will be maintained in an external subsidiary file consisting of a copy of the listings, cross-referenced with the applicable journal number. As each item is identified and applied, the supporting subsidiary document should be annotated, and the remaining balance corrected to assist in the monthly reconciliation.

  2. Items placed in this account will be subject to expedited research to determine proper application, and will be transferred to the proper taxpayer's account upon identification.

  3. For large files, a quarterly balancing must be performed to ensure the accountability of the documents.

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

Account 6400 Miscellaneous Revenue Collections
(Nominal Account, CR Normal Balance)
(Account Active in All Sites)
  1. This account is used to record the amount of collections received as a result of judgments for fines, penalties, or court costs asserted by federal courts incident to evasion of payment of taxes, offers accepted in lieu of such liabilities, and other non-assessable specific penalty offers.

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

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

    1. 2305 No longer being used (20-1060).

    2. 2310 Treaty Country Receipts (20-3220).

    3. 2320 Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest (20-3220).

    4. 2325 Misc. Forfeiture Receipt (20-1099).

    5. 2345 Presidential Election Campaign (20X5081.1).

    6. 2350 Public Debt (20X5080.1).

    7. 2355 Federal Court Ordered Restitution for Costs and Penalties (203220).

    8. 2360 Conscience fund (20-1210) .

    9. 2365 LIFO Payments, Rev Proc 9744 Settlement Payments (20-3220).

    10. 2370 Mortgage Subsidy Bond Receipt (20-3220).

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

  5. Maintain a listing of all miscellaneous receipts under 20-3220. This information will be used for disclosure in the IRS Consolidated Financial Statement.

  6. Prepare a worksheet of the nine individual accounts including the journal number and amount. Initial and date when balanced on a monthly basis, forward to Manager or Lead quarterly for review. Manager or Lead must initial and date their review quarterly on the worksheet.

Account 6950 DOJ Civil Debt Collection Holdback
(Nominal Account, DR Normal Balance)
(Kansas City Only)
  1. Each year the appropriations act for DOJ authorizes it to retain 3% of all amounts collected, pursuant to DOJ's civil debt collection litigation activities.

  2. Account 6950 is used to record and journalize the 3% amount retained by DOJ.

  3. Form 3809 are the external subsidiary record.

Deposit of Collections From Civil Judgments
(Kansas City Only)
(RRACS Window 541)

  1. The Debt Management Section (DMS) of DOJ will transfer to Kansas City (ALC 2009-0900) any funds collected. All transfers will be made via IPAC.

  2. This Intra-Governmental Payment and Collection System Receipt (IPACR) will be supported by a listing showing the debtor's name and SSN, interest computation date, cause of the action, collection office claim number, dollar amount, and a collection office referral number. Upon receipt of the IPACR, Accounting will enter TAS 20F3844 (if not already present) and ensure that the total of the amounts on the listing equals the amount shown on the IPACR.

  3. After verification of the amount of IPACR and the support listings, the amount will be journaled into RRACS using a 541 Window, which can be found under the Disbursement, IPAC Receipts, IPAC DOJ which will debit Account 2915 (IPAC DOJ Receipts) and credit Account 4975 (DOJ Liability Receipt). The support listing will be used to determine where the payments should be applied.

  4. The payments will be reclassified from Account 20F3844 to the appropriate receipt account.

  5. Forward the source documents to the appropriate area for research and balancing. Necessary documents will be prepared and input to apply the payments to the proper taxpayer accounts.

  6. If the funds were erroneously transferred, the specified DOJ collection officer should be contacted, and DOJ will execute an IPAC to transfer the incorrect item back to DMS.

  7. If the funds are returned to DOJ, any actions taken in item (3) above must be reversed. The new Intra-Governmental Payment and Collection System Disbursement (IPACD) returning the funds to DOJ is input to RRACS.

Applying DOJ Payments

  1. Civil payments can be applied using three different methods:

    1. Apply to Taxpayer account: RACS will receive Form 2424 to debit Account 4975, DOJ Liability account and credit taxpayers Account 4220 (IMF), 4120 (BMF), or 4420 (NMF) as appropriate.

    2. Apply to Account 6800, Excess Collection: RACS will receive Form 2424 to debit Account 4975 DOJ Liability and credit Account 6800 Excess Collection with Form 8758 and Form 813 to add payment to the Excess Collection File. Make 2 copies of each.

    3. Leave credit in Account 4975 DOJ Liability account: prepare Form 2424 to credit Account 4975 DOJ Liability.

  2. Verify to ensure the posting documents balance to the Form 813 total.

  3. Verify to ensure all Form 813 and other forms prepared balance back to the IPAC document.

  4. RACS will journal the above documents using a 469 Window, which can be found under Accounting Applications, TRACS Application then IPACR Application. Follow the accounts listed on the posting documents for appropriate accounts.

    Note:

    The Form 2424 must contain the manager's initials to show that it has been reviewed and approved.

  5. RACS will also receive a Form 3809 to journal a 3% DOJ collection fee.

    1. Journal Form 3809 using a 469 Window, which can be found under Accounting Applications, TRACS Application, then IPACR Application. The journalization will be a debit 6950 (DOJ Civil Debt Collection Hold-back) and credit Account 4975 (DOJ Liability account).

  6. Transcribe or Stamp journal number on all documentation and file and distribute accordingly.

Court Ordered Criminal Restitution Payments
(Kansas City Only)

  1. Restitution is a legal remedy that can be ordered by the court, in a criminal case. A restitution order requires the criminal defendant to pay money or render services to victims in order to redress the loss the defendant has inflicted. Normally imposed during sentencing, it can be agreed to by the parties in a plea agreement or imposed as a condition of probation or supervised release.

  2. In a criminal tax case, the offense generally results in the loss of government property, i.e., the money to which the government was entitled under the tax laws but which the defendant did not pay. Through a restitution order, a court can require a defendant to pay money to the IRS in order to redress the losses he or she inflicted on the federal treasury.

  3. In most criminal tax cases involving restitution, the amount of the tax loss is calculated from evidence admitted at trial or from information contained in the plea agreement and presented to the district court at sentencing.

  4. Restitution is not assessed as a tax, but payment of restitution for taxes owed must be credited against the civil liability for unpaid taxes as provided in a plea agreement or court order.

  5. Restitution should not be confused with civil tax liability.

    • The amount of the loss a defendant can be ordered to pay as restitution must result from the defendant’s criminal activity and that amount generally does not include civil tax penalties.

    • A restitution order does not bar the IRS from determining civil tax liability in an amount greater than the amount ordered payable to the IRS as restitution.

    • A restitution order also does not prevent a taxpayer from challenging the IRS’s determination that the civil liability exceeds the amount of the restitution order.

  6. Judgment and Commitment Orders (J & Cs) normally specify that defendants are to submit restitution payments to the office of the clerk of court in the district in which the defendant was sentenced. This will generally include restitution payments required to be paid to the IRS.

  7. The clerk of court has the responsibility for receiving, processing, and recording restitution payments made by defendants. The clerk of court will forward the money (Treasury checks, personal checks, and/or money order) to the victim(s) listed in the restitution order, which may include the IRS. Criminal restitution payments made to the IRS should be mailed to the address below.

  8. The clerk of court offices will disburse criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS are processed by Submission Processing at the Kansas City Campus, only. The clerk of court offices have been requested to send all criminal restitution payments to the following address:
    IRS-RACS
    Attn: Mail Stop 6261, Restitution
    333 W Pershing Road
    Kansas City, MO 64108

    Exception:

    If criminal restitution payments are routed to an IRS office or campus other than Kansas City, they must be transshipped via overnight traceable method per Manual Deposit IRM 3.8.45.6.26, Department of Justice/Criminal Restitution Program Payments (KCSPC Only).

  9. Inquiries received at other sites regarding court ordered restitution payments should be forwarded to the Kansas City SPC DOJ Team Manager, 816-499-5942 for receipt and reconciliation of criminal restitution payments.

  10. Personal checks and/or money orders received directly from the taxpayer and not through the ‘clerk of court' are still considered restitution payments if the payments are being made pursuant to a court order in a criminal case.

Restitution Payment Processing
(RRACS Window 400)
  1. Criminal restitution checks are received daily from the courts.

  2. Some payments received are split payments with partial money going to master file and part to Account 6400 (Miscellaneous Revenue Collection).

  3. RACS will receive Form 3244 and Form 2424 with Form 813.

  4. Journal using a 400 Window, found under Accounting Applications. The journal will be a debit to Account 4220 (IMF) and a credit to Account 6400 (Miscellaneous Revenue Collection). Reclass, in same window, a debit to Account 2355 (Federal Court Ordered Restitution) and a credit to Account 2120 (Individual Income, Other Revenue Receipts).

    Note:

    Any payments received via check or money order that cannot be applied or resolved will be input to Treasury Symbol 20-3220, Account 2355 (Federal Court Ordered Restitution) and credited to 6400 (Miscellaneous Revenue Collection).

Direct Debit Installment Agreements (DDIA)

  1. DDIA is a collection program. Taxpayers make arrangements with collection personnel to repay tax liabilities in installments. An agreement is signed allowing IRS to periodically withdraw the installment amount electronically from the taxpayer's bank account. The customer's account is debited only once a month.

  2. On the expected payment due date Bank of America prepares a paper SF 215-A and records it in Collections Information Repository (CIR).

  3. Bank of America 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 FRB.

  4. Site responsibilities:

    1. Monitor the progress of all transactions. EFT 12 and EFT 18 identify all debit and credit transactions, respectively, associated with DDIA. A deposit ticket must correspond with each EFT 12 summary. Likewise, a debit voucher 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. EFT 12 and 18 constitute the journal document along with the DT/DV.

    2. Keeping a log ensures that all processing is completed. Log formats can be established by individual sites. Missing entries and mis-matched dollar amounts will identify problems quickly.

    3. Verify and balance the deposit ticket with the EFT 12 summary daily. Journalize entries through the Deposit Control menu.

    4. Verify and balance the debit vouchers from the memo or confirmed copy, using the date in box 2 to the EFT 18 summary daily, and journalize entries. If the debit voucher is not received at the time the EOD 16 is ready for journalization, a Form 2424 may be prepared and journalized to debit the proper SCCF account and credit Account 1720. Upon receipt of the SF 5515, reverse the entry by debiting Account 1720 and crediting Account 1710. Reclassify when the EOD 16 run identifies the money as other than tax class 1.

    5. Verify and balance EFT 12 and EFT 18 to EFT 16 and EOD 16 daily. Debit vouchers are processed through the Pittsburgh FRB. If a debit voucher is not received within 10 work days, call Bank of America to initiate research or call NHQ transfer analyst.

    6. If runs or reports are missing, initiate research with Computer function to determine the reason. Failure to ensure processing of all runs, or receipt of all DT/DVs, will result in improper postings to the MF, or erroneous entries on RRACS. Bank of America also issues a monthly bank statement to accounting that includes T/P EIN, money amount, transaction date, and other data. This may be used as a research tool. The Bank of America statements should be retained for a period of three years from date of statement.

    7. Close coordination with Collection and Computer functions is necessary to ensure that the payments and tapes were generated to Bank of America.

Dishonored Check File

  1. The Dishonored Check File (DCF) is a separate file within the Integrated Data Retrieval System (IDRS) containing records of all remittances returned to IRS by the depositaries upon which payment has been refused.

General Ledger Accounts for Dishonored Checks

  1. The following accounts are associated with the dishonored check file:

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

  2. This account will also be used to clear unresolved debit items from SCCF, and unprocessable debits from the DCF. This account will be supported by case history files recording approval of the Campus Director to remove them from the SCCF. These items will be supported by Form 3809 for non-revenue receipt items, and Form 2424 for revenue receipt items.

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

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

  4. External subsidiary record is the file of paper documents used as described below:

    1. Memo signed by director

    2. Form 2424 or Form 3809

    3. History Sheet

Account 1710 Dishonored Checks
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record and control dishonored checks or money orders, previously recorded as collections for the IRS.

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

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

  4. After the DCF file is balanced to all related SF 5515, sub-batches are prepared and tapes are run. Entries to RRACS are made from the SF 5515 and tapes. Annotate all journal numbers and amounts on the DCF 03 run. Make sure total of journals balances with total added to DCF file, plus or minus any adjustments or errors, as noted.

  5. This account will also be used to record deposit discrepancies (losses) related to SF 5515. These items will be entered immediately onto the DCF for control purposes. Necessary research will be performed to determine the proper application of the debit. If, after 90 days, the debit cannot be resolved, it will be transferred to Account 7650, Deposit Discrepancies (See IRM 3.0.167, Losses and Shortages, for more information). The case must be documented with all actions taken to resolve the discrepancy. This documentation is needed to request relief of the loss.

  6. External subsidiary is the DCF on IDRS.

Account 1720 Dishonored Check Adjustments
(Real Account, DR/CR Normal Balance)
  1. This receivable account will be used to record any discrepancies between the SF 5515, and the total of the related dishonored checks associated with the debit voucher.

    1. When SF 5515 is overstated, debit documents in the amount of the overstatement will be prepared and controlled in this account.

    2. When SF 5515 is understated, credit documents in the amount of the understatement will be prepared and controlled in this account.

    3. Items in this account will be cleared upon receipt of a supplemental or adjusting DT or DV.

  2. The DCF function is responsible for contacting the bank, research and resolution.

  3. This account will also be used to record EFTPS Electronic Reject/Offset Report (credit), and Electronic Reject/Offset Report (debit) (Ogden Only). The credit amount will be a rejected transmission that is included on a SF 215-A. The debit amount will offset a credit amount and will always have a SF 5515 with the Electronic Reject/Offset Report.

  4. External subsidiary record is the file of paper documents prepared individually for each adjustment.

Account 1840 Other Receivable, Inactive
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record the amounts of unresolved items for which the statutory period of assessments has expired.

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

  3. Items may also be transferred from Account 4810. These case files will be supported by administrative approval delegated no lower than the Accounting Operation Manager.

  4. Case files will be reviewed at least once yearly to determine the accounts on which the Collection Statute has expired and the manager should sign and date history sheet.

  5. Upon expiration of the Collection Statute, items should be written off to Account 6600.

  6. External subsidiary records are the case history files.

Account 6700 Foreign Check Collection Cost and Miscellaneous Bank Charges
(Nominal Account, DR Normal Balance)
  1. This account is used to record charges by the depository banks, or by the cash division of the Treasurer's office, for processing foreign checks and other miscellaneous fees (foreign and domestic), including encoding error charges. These charges will normally be made on SF 5515 or returned refund schedule.

  2. External subsidiary record is the case file.

Foreign Check Conversion Rate Overage/Shortage
  1. If a financial institution does not use the original conversion rate when processing a returned foreign check, the difference may result in an overage or shortage.

  2. Receive SF 5515 from the financial institution.

  3. Compare the SF 5515 against the original deposit ticket. Determine if the shortage/overage is due to a conversion rate difference or a bank fee.

  4. Once the item is added to the Dishonored Check File (DCF):

    1. DR 1710 Account/CR 2110 Account via the 220 Window.

  5. If the shortage/overage is due to a conversion rate difference, prepare Form 2424, Account Adjustment Voucher, with the applicable TC reversal (e.g., 611, 671, etc.).

    1. DR 6700 Account/CR 4220 Account for the shortage, via Window 400.

    2. DR 4220 Account/CR 6700 Account for the overage, via Window 400.

    3. Annotate the SF 5515 number in the comments field.

  6. If the shortage was a bank fee, see IRM 3.17.10.2.13 for procedures.

  7. External subsidiary record is the case file.

Miscellaneous Bank Charges (Foreign and Domestic)
  1. If a refund is returned undeliverable, the amount is returned to Bureau of Fiscal Service’s (BFS) Regional Finance Center (RFC).

  2. When the RFC cancels the returned refund, the check or wire transfer is returned to IRS for credit to the appropriate taxpayer’s account.

  3. Occasionally, the financial institution may charge a fee for processing the returned refund.

  4. Upon receipt of the refund cancellation schedule from BFS:

    1. Compare the total of the returned refund schedule to the amount of the original refund to determine the difference.

    2. Verify the shortage is a bank fee or miscellaneous bank charge (via the Payment Detail Record) and note the reason for the returned refund.

  5. Complete the appropriate journal actions:

    1. DR 5100 Account/CR 4970 Account for the returned refund schedule (SF 1098, SF 1091, SF 1184, SF 1185), via Window 532.

    2. DR 6700 Account/CR 4970 Account for the bank fee or miscellaneous bank charge via Form 3809, Miscellaneous Adjustment Voucher, via Window 400. Annotate the returned refund schedule number and bank fee amount in the comments field.

  6. Prepare Form 3245, Posting Voucher – Refund Cancellation or Repayment (see Exhibit 3.17.80-11, for blocking series).

    1. Input TC 740 for the original refund amount, with the original refund posting date, of the undeliverable returned refund.

      Note:

      The TC 740 should equal the original refund amount (the returned refund schedule amount plus the miscellaneous bank charge/bank fee.

  7. Complete the journal action for Form 3245 (400 Window):

    1. DR 4970 Account/ CR 4220 Account for the amount of the original refund.

  8. External subsidiary record is the case file.

Account 7002 Deposit Fund Receipts/Disbursements
  1. This receipt and disbursement account records the receipt of monies to be placed in the deposit fund pending some subsequent action, and to record the disbursement of deposit fund monies. Included in the account are amounts received as a result of seizure and sale action, amounts received from taxpayers with offers in compromise, and miscellaneous receipt items held in this account pending legal action or proper application authority.

  2. Receipts for this account are recorded upon preparation of SF 215-A. The Campus Director is personally accountable for funds until deposits to the Treasury account are confirmed.

  3. Deposit fund monies are considered monies held in trust by the government. No interest is paid on deposit fund monies refunded. However, when a sale results in surplus proceeds, interest may be paid on the surplus.

  4. Individual records are maintained in the database. No external subsidiary record for this account is maintained. Amounts from this account are reported directly to CARS monthly.

Dishonored Check Applications
(RRACS Window 210/220/400/411)

  1. RACS will receive the following DCF computer listings and documents from the Dishonored Check Function:

    1. EOD16, Pages 9 and 10

    2. Form 2424

    3. Form 4028

    4. Form 4830

    5. SF 215-A - Deposit tickets on redeposits or discrepancy washouts

    6. SF 5515

    7. DCF 03 and DCF 05

  2. EOD 16 run and DCF 05 run amounts should balance. These include the DCF applications to the MF accounts, both current and prior fiscal year.

  3. Journaling should be made from Pages 9 and 10 of EOD 16. Journaling of Current FY applications, Page 6, requires reclassification. The net reclassification to each tax class should be computed before going to the RRACS system for input. IDRS tape processing includes the journalization of prior and current year DCF applications and related reclassifications for current fiscal year.

  4. Using the RRACS 411 Window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/SCCF, journal each entry.

    1. The journalization will be a Debit to either Account 4120 (BMF), 4220 (IMF) or 4420 (NMF) and a Credit to Account 1710 (Dishonored Checks).

    2. Reclassification will be required. The reclass will be a Debit to 2110 (Withholding Revenue Receipts) and a Credit to any tax classes involved.

  5. Restricted applications from the DCF should include corrections to previous input errors or deletions from the DCF because of redeposits. For all redeposits, a deposit ticket will be received and journaled through the RRACS 210 Window, which can be found under the Deposit Main Menu under Deposit.

    1. The journalization will be a Debit to 2110 (Withholding Revenue Receipts) and a Credit to 1710 (Dishonored Checks). If the money on the SF 215 is not under tax class 1, a reclass is needed. The reclass would be a Debit to the tax class on the SF 215 and a Credit to 2110 (Withholding Revenue Receipts).

  6. SF 5515 debit vouchers will be journaled as follows.

  7. Using the RRACS 220 Window, which can be found under the Deposit Main Menu under Debit Voucher, journal each debit voucher.

    1. The journalization will be a Debit to Account 1710 (Dishonored Checks) and a Credit to 2110 (Withholding Revenue Receipts).

  8. Any Form 2424 or 4028 should be journaled using the RRACS 400 Window which can be found under the Accounting Application Main Menu under Accounting Applications.

    1. Journal according to the accounts stated on the documents.

  9. Distribute runs and documents accordingly.

  10. Corrections to previous input errors will be "V" applies or "Z" applies.

    Note:

    A "V" apply deletes a record completely and "Z" apply changes the amount. These should require no journalization, but should balance the DCF with previously journalized amount.

Dishonored Checks on Miscellaneous Deposits
(RRACS Windows 412/413)

  1. Dishonored checks may be received on the following:

    1. Deposit Funds Account 7002

    2. General Funds Account 23XX

  2. Any record on the DCF for one of these accounts should be voided and entries made from DCF 03. Source documents are required for each of these.

  3. RACS will receive a photocopy of check and DCF worksheet with account number annotated and the document ID number.

  4. For a deposit fund use the following journal:

  5. Using the RRACS 413 Window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/Deposit Fund, input each Doc-Id and amount separately.

    1. The journalization will be a Debit to either Account 4710 (Offer in Compromise), 4720 (Sales of Seized Property) or 4730 (Miscellaneous Deposit Funds) and a Credit to Account 1710 (Dishonored Checks).

    2. Reclassification will be required. The reclass will be a Debit to Account 2110 (Withholding Revenue Receipts) and a Credit to Account 7002 (Deposit Fund Receipts).

  6. For miscellaneous fees use the following journal:

  7. Using the RRACS 412 Window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/MISC Fee, input each amount separately.

    1. The journalization will be a Debit to Account 6310 (Miscellaneous Fees) and a Credit to Account 1710 (Dishonored Checks).

    2. Reclassification will be required. The reclass will be a Debit to Account 2110 (Withholding Revenue Receipts) and a Credit to either Account 2310 (Treaty Money), 2315 (Arbitrage - Ogden Only), 2320 (Miscellaneous Receipts), 2325 (Forfeiture), 2330 (EP/EO User Fees - Cincinnati Only), 2340 (Photocopy Fee), 2350 (Public Debt), 2360 (Conscience Fund), 2370 (Mortgage Subsidy Bonds), 2380 (Original Installment Agreement), 2385 (Reinstatement Installment Agreement) or 2395 (OIC User Fee - Brookhaven, Cincinnati and Memphis Only).

  8. Transcribe or stamp journal identification number on listing and/or documents for audit trail.

  9. Distribute run and documents accordingly.

Dishonored Checks on Unidentified Remittances
(RRACS Window 404)

  1. RACS will receive from the Dishonored Check Function the DCF 03 daily run.

  2. RACS will journal from the DCF 03 using a RRACS 404 Window, which can be found under Accounting Application, Unidentified Apply, URF/MISC.

  3. The journal will be a Debit to Account 4620, Unidentified Remittance and a Credit to Account 1710, Dishonored Checks. Reclass if necessary, using the same window.

  4. Transcribe or stamp journal identification number on listing and/or documents for audit trail.

Enterprise Computing Center, Martinsburg
(ECC-MTB)

  1. ECC is primarily responsible for maintenance of the MF records for each taxpayer, and for the electronic processing of related inputs and outputs. ECC-MTB will maintain:

    1. Accounting and data control over BMF and IMF transactional data and accountability reports

    2. A RACR with each campus

  2. For each campus, ECC-MTB will prepare a separate SF 1166 or SPS print covering the total amounts of overpayment principal and interest posted to BMF and IMF refund files.

  3. A designated officer at ECC-MTB will certify each voucher for the account of the applicable Campus Director. See IRM 3.17.79, Accounting Refund Transactions.

  4. The BMF and IMF refund media and related certified vouchers will then be transmitted to the Kansas City, Regional Finance Operating Center for issuance of the refund checks (See IRM 3.17.79, Accounting Refund Transactions).

  5. In the MF posting operations at ECC-MTB, the computer will generate certain accounting adjustments, transactions and abstracts of revenue receipts by type of tax, and liability year classifications. These will be inscribed on output files for transmittal to ECC-MTB for posting to RRACS, and to the campus for the printing of required registers and summaries.

    Note:

    CADE stopped processing transaction data as of the end of Cycle 201124 All individual taxpayer accounts have been returned to the Individual Master File (IMF) and in January 2012, IMF began processing all IMF transactions under the CADE 2 processing time line with daily processing. All general ledger activity is included under the IMF general ledger account.

General Ledger Accounts for Enterprise Computing Center (ECC)

  1. The following accounts are associated with ECC.

Account Series 4000 Liability Accounts
  1. This series of accounts records the Service's liability for the various suspense files, inventory files, and pre-payment amounts. Credits in these accounts are normally in process for application to a tax liability. This includes pre-payments such as estimated tax, for which no tax assessment has yet been made, but a tax liability is anticipated.

Account 4110 ECC Suspense for the MF-BMF
(Real Account, DR/CR Normal Balance)
  1. This liability account records both debits and credits at or sent to ECC for posting to the BMF. Also included are generated postings reported on the SC Recap for post journalization.

  2. All MF postings, both campus-processed and MF-generated, are considered to be in process until actually posted to the taxpayer account, and a change in the MF account status is reflected.

  3. While the RACRs are used to ensure the balance in this account, no actual external subsidiary record is maintained. Data input may be updated by electronic transmission.

Account 4130 ECC Unpostable Documents-BMF
(Real Account, DR/CR Normal Balance)
  1. This liability account will be used to record and control pre-journalized debits and credits returned by ECC as unpostable to the BMF.

  2. Items in this account failed to meet all the BMF validity checks, or failed to match on entity information. Items in Account 4130 will be reviewed, corrected, and resubmitted to MF processing, and reestablished on the SCCF.

  3. The magnetic tape file of unposted transactions is the external subsidiary record.

Account 4210 ECC Suspense for the MF-IMF
(Real Account, DR/CR Normal Balance)
  1. This liability account records both debits and credits at, or sent to, ECC for posting to the IMF. Also included are generated postings reported on the SC Recap for post journalization.

  2. All MF postings, both campus-processed and MF-generated, are considered to be in process until actually posted to the taxpayer account module, and a change in the MF account status is reflected.

  3. While the RACRs are used to ensure the balance in this account, no actual external subsidiary record is maintained.

  4. Data input may be updated by electronic transmission.

Account 4215 ECC Suspense for CADE
(Real Account, DR/CR Normal Balance)
  1. This liability account previously recorded both debits and credits at, or sent to, ECC for posting to CADE. Also included are generated postings reported on the SC Recap for post- journalization.

  2. All CADE postings before cycle 201125, both campus-processed and MF-generated, were considered to be in process until actually posted to the taxpayer account module, and a change in the MF account status is reflected.

  3. While the RACRs are used to ensure the balance in this account, no actual external subsidiary record is maintained.

  4. Data input may be updated by electronic transmission.

Account 4217 ECC MFT 30 to MFT 29 for CADE
(Real Account, CR Normal Balance)
  1. This liability account was set up to record credits offset at ECC from MFT 30 to MFT 29. These postings are reported on the SC Recap for post journalization.

  2. On the SC Recap it shows the offset credit transferred to MFT 29 (debit Account 4210 X credit Account 4217), while another line reflects the credit transferred from IMF (debit Account 4217 X credit Account 4210).

  3. Data input is updated by electronic transmission.

Account 4230 ECC Unpostable Documents-IMF
(Real Account, DR/CR Normal Balance)
  1. This liability account will be used to record and control pre-journalized debit and credit transactions returned by ECC as unpostable to the IMF. Items in this account failed to meet all the validity checks, or failed to match on entity information.

  2. Items in Account 4230 will be reviewed, corrected, and re-submitted to the MF processing, or nullified and re-established on the SCCF.

  3. The magnetic tape file of unposted transactions is the external subsidiary record.

Account 4254 MFT 30 to MFT 29
(Real Account, CR Normal Balance)
  1. This liability account records credits offset at ECC from MFT 30 to MFT 29. These postings are reported on the SC Recap for post journalization.

  2. Line 23 on the SC Recap shows the offset credit transferred to MFT 29 (debit Account 4210 X credit Account 4254), while Line 106 reflects the credit transferred from IMF (debit Account 4254 X credit Account 4210).

  3. Data input is updated by electronic transmission.

ECC Application Tapes to ECC
(Mainline and IDRS)

  1. IMF and BMF TEP controls are received for MF mainline and IDRS good transactions to tape. The controls may be one or a combination of the following:

    1. GMF 1545

    2. SCF 1152

    3. SCF 1151

    4. SCF 1340

    5. GUF 5342

  2. Enter the debit amount and credit amounts. Enter the net amount. If source document is other than GMF 1545, the net amount must be calculated.

Corrected Unpostable Transactions

  1. One of the following corrected unpostable controls may be received: GMF 1545 or GUF 5340.

  2. Enter the debit amount, the credit amount, and the net amount from GMF 1545, corrected unpostables line, or from the GUF 5340, total corrected unpostables line.

Applications From Unpostables

  1. Documents which are unable to post at ECC come back to the campus as unpostable. Resolution codes 1, 2, and 8 on GUF 5340 nullify the unpostables. Code 1 indicates the record goes back to suspense status, code 2 indicates a voided record, and code 8 indicates a record going to Rejects.

  2. Documents may be perfected and re-input, renumbered to another file or tax class, transferred to another campus, or transferred with same DLN to unidentified, deposit fund, or general ledger accounts such as Account 6800, Excess Collections, or Account 1510, Other Receivables.

  3. Receive Unpostable Control Report (GUF 5340). Entries will be made from listings and documents. For amounts being put back in process, entries will be made from the total nullified unpostables line. Journalization will be from Unpostable Accounts (4130 BMF and/or, 4230 IMF) to "In-Process" Accounts (4120 BMF and/or 4220 IMF). Subsequent reclassification may be required.

  4. Credit entries to deposit fund accounts will be made from the individual documents. Documents must have a Doc-Id. Journalize from Unpostable Accounts 4130 or 4230 to Deposit Fund Accounts (4710 OIC, 4720 Sale of Seized Property, or 4730 Miscellaneous DF). It will be necessary to reclassify. Decrease Revenue Receipts Account 21XX (credit) and increase Deposit Funds Account 7002 (debit).

  5. Data from GUF 5340 will automatically journal via the RRACS 35 process. This run includes the new, nullified, corrected, and reclassified unpostable transactions received from and sent to ECC for MF. If electronic data input is incorrect, a new transmission can be processed, or the data can be input manually from the hard copy. This manual process can be accomplished through the Accounting Application main menu. Transcribe or stamp journal identification number on control listings and documents, as required for audit trail.

New Unpostables

  1. Source documents received when new unpostables are added to the file are:

    1. IMF Unpostable Controls - Listing number GUF 5340

    2. IMF Revenue Receipt Control Sheet (RRCS) - Listing number SCF 1340

    3. BMF Unpostable Controls - Listing number GUF 5340

    4. BMF Revenue Receipts control Sheet (RRCS) - Listing number SCF 1340

  2. Verify that unpostable controls balance with RRCS posting block proof balances with unpostable master control. Entries will be made from unpostable controls total items and amount. Ensure cycle number is available on listing. Net credit on unpostable controls will be an increase (credits ECC Unpostable Documents Accounts - IMF 4230 and BMF 4130). Net debit on unpostable controls will be a decrease.

  3. New unpostables as well as nullified, reclassified, and corrected unpostables are journalized from the GUF 5340 by tape processing. RAC 35 is the program which posts the data in a batch environment rather than entering the data manually. RRACS 35R is the program that reverses all posting done by RAC 35. Windows will serve as backup in the event of a tape failure. Transcribe or stamp journal identification number on unpostable listings for audit trail.

ECC Deletes

  1. Receive accountability acceptance voucher or locally established documentation of deletes by ECC. Separate entries are required for each MF. Enter related debit or credit amounts deleted by ECC.

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

  1. The Electronic Federal Tax Payment System (EFTPS) allows individuals and businesses to make electronic deposits and payments for federal taxes such as Employment Taxes, Excise Taxes, Corporate Income Taxes and Form 1040 Estimated taxes.

General Ledger Accounts for EFTPS

  1. The following accounts are associated with EFTPS.

Account 4125 EFTPS/FPLP Suspense for MF BMF
(Real Account, DR/CR Normal Balance)
(Ogden Only)
  1. This liability account is used to record all BMF electronic debits and credits that are in process in the campus for posting to the BMF. Upon receipt in the campus, amounts will be entered in Account 4125, and will remain while processing is being accomplished. When processing is complete, and items are on magnetic tape for shipment to ECC, they will be removed from this account.

  2. This account is supported by the EPCF. All items placed in this account must be recorded in detail on the EPCF.

Account 4225 EFTPS/FPLP Suspense for MF IMF
(Real Account, DR/CR Normal Balance)
(Ogden Only)
  1. This liability account is used to record all IMF electronic debits and credits that are in process in the campus for posting to the IMF. Upon receipt in the campus, amounts will be entered in Account 4225, and will remain while processing is being accomplished. When processing is complete, and items are on magnetic tape for shipment to ECC, they will be removed from this account.

  2. This account is supported by the EPCF. All items placed in this account must be recorded in detail on the EPCF.

Account 4425 EFTPS/FPLP Suspense for NMF
(Real Account, DR/CR Normal Balance)
(Ogden Only)
  1. This liability account is a suspense account for NMF, and will be used to record control items received electronically by the campus for processing to the NMF accounts. The amounts of debits and credits will be cleared from this account upon application of the items to the NMF account.

Account 4765 EFTPS/FPLP Misc. Suspense
(Real Account, DR/CR Normal Balance)
(Ogden Only)
  1. This liability account is used to hold and control special fund amounts that have been received electronically.

  2. The following EFTPS items can be included in Account 4765:

    1. Payments for non-revenue accounts, such as user fees, conscience fund, and public debt.

    2. Payments received with an invalid tax type. These are reclassified when the tax type is corrected.

    3. Payments or reversals determined to be unidentified by the EFTPS financial agent. The financial agent must send an offsetting transaction.

    4. Batches that are rejected by the EFTPS load and validate program. The amount will be reclassified when the financial agent submits a processable batch.

Account 7001 Unclassified EFTPS/FPLP
(Nominal Account, DR Normal Balance)
(TAS 20F3820)
(Ogden Only)
  1. This receipt account records the total unclassified EFTPS money amounts received but not yet classified to tax class.

EFTPS Deposit Ticket Journal (Ogden Only)
(RRACS Window 210)

  1. Each deposit ticket sent by EFTPS to RRACS is based on the classification provided by the financial agent.

  2. Use the DT/DV Summary Report as an index to make sure that all deposit tickets have been received and journalized, and to validate the journal totals.

  3. The automated journal number is 110. If a manual journal is required, journal using Window 210, which can be found under the RRACS Main Menu under Deposit. Use a printed copy of the EFTPS deposit ticket to support each journal. The printed deposit ticket lists all of the batch numbers that have been included on the deposit.

    1. Debit the appropriate tax class in the Account 2100 series or tax class 9, revenue suspense.

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

    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
  4. Deposit tickets are sorted by settlement date in EFTPS.

  5. The deposit ticket does not identify user fees and non-revenue items. Non-revenue deposit items are classified into Account 4765, then reclassified.

  6. Deposit tickets from the Federal Payment Levy Program (FPLP) are journalized to different accounts because the money is received through IPAC.

    1. When the money is received on IPAC, a manual journal is prepared to debit Account 2910 and credit Account 4765.

    2. The EFTPS journal 114 debits Account 4765 and credits Account 2910, and debits the Account 21XX tax classes and credits the appropriate EFTPS suspense accounts.

    3. RRACS is programmed to recognize the FPLP deposit ticket journal record by the record code 5. Normal EFTPS deposit tickets contain record code 1.

EFTPS Debit Voucher Journal (Ogden Only)
(RRACS Window 221)

  1. Each EFTPS debit voucher contains tax classification information provided by the financial agent.

  2. Use the DT/DV Summary Report as an index to make sure that all debit vouchers have been received and journalized, and to validate the journal totals.

  3. Use the printed debit voucher as the source for journalization.

  4. The automated journal number is 111. If a manual journal is required, journal using Window 221 to debit the appropriate suspense account and credit the Account 21XX tax class.

  5. For FPLP debit vouchers, a manual journal from the IPAC record debits Account 4765 and credits Account 2910. Then the EFTPS 114 journal debits Account 2910 and credits Account 4765, and debits the appropriate EFTPS suspense accounts and credits the Account 21XX tax classes. The journal record from EFTPS is identified by record code 6.

EFTPS Deposit Reclassification Journal (Ogden Only)
(RRACS Automated Window 112)

  1. The source document for the automated reclassification journal number 112 is the EFTPS reclassification summary. Any debit or credit transactions that can be reclassified by the EFTPS system is included on the EFTPS Reclassification summary, including the following types of transactions:

    1. Any payment or debit record that was mis-classified by the financial agent.

    2. Any record that was changed to a different tax class or MF by error correction.

    3. Any record that was changed to a different tax class or MF as a result of an auto correction during load and validate.

    4. Batches that have been rejected during EFTPS load and validate. The payments are reclassified to tax class 9, MF 7, until a corrected batch is re-submitted. Because the reclassification program is unable to determine the original MF, the EFTPS reclassification summary will show rejected batches as coming from BMF.

    5. Special fund payments that were classified as tax class 9, revenue suspense, by the financial agent, but were assigned tax type codes that EFTPS is able to further classify. EFTPS assigns a pseudo tax class, which is printed on the reclassification list. These include:

    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
  2. Any other reclassification must be completed with a manual journal when the items are deleted from EFTPS suspense.

  3. The EFTPS Reclassification summary is divided into two parts:

    1. Part 1 is the tax class reclassification containing the net change in tax classes, as identified by a comparison between the tax type codes and the deposit ticket, 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, plus MF changes created by auto correction and error correction.

    3. Both parts include a net change column that can easily be used to create a reclassification journal.

  4. The EFTPS reclassification list includes detailed information of the items that are being reclassified.

EFTPS TEP Journal (Ogden Only)

  1. A TEP journal record is prepared for each MF as EFTPS records are sent to ECC.

  2. The automated journal number is 113. If a manual journal is required, use the EFTPS daily trans release summary to prepare journal 417 for BMF, and 418 for IMF.

  3. For the normal credit balance, debit the ECC suspense account and credit the EFTPS suspense account.

    1. For BMF, debit Account 4110 and credit Account 4125

    2. For IMF, debit Account 4210 and credit Account 4225

  4. If the report has a debit balance, debit and credit accounts are reversed.

Electronic Transmissions

  1. The following general ledger accounts are updated by electronic transmission.

Account 4510 Pre-payment Credits BMF
(Real Account, CR Normal Balance)

  1. Recorded in this liability account is the sum total of all those BMF taxpayer modules which are in credit-balance status. Modules are normally in credit-balance status due to pre-payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

  2. For the purpose of this account, the term pre-payment credits is defined to include all those credit amounts in a module for which there is no assessment or debit amount equal to or greater than the credit.

  3. No external subsidiary record is used.

  4. The account will be updated by electronic transmission.

Account 4520 Pre-payment Credits IMF
(Real Account, DR/CR Normal Balance)

  1. Recorded in this liability account is the sum total of all those IMF taxpayer modules which are in credit-balance status. Modules are normally in credit-balance status due to pre-payments by estimated tax payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

  2. For the purpose of this account, the term pre-payment credits is defined to include all those credit amounts in a module for which there is no assessment or debit amount equal to or greater than the credit.

  3. No external subsidiary record is used.

  4. The account will be updated by electronic transmission.

Account 4521 Pre-payment Credit - Non Tax
(Real Account, CR Normal Balance)

  1. This account represents the sum total of non-tax accounts with credit balances on the MF. Included in this account are individual and business accounts with an outstanding balance due.

  2. No external subsidiary record is used.

  3. The account will be updated by electronic transmission.

Account 4950 IMF Unallowable Deductions
(Real Account, DR/CR Normal Balance)

  1. This liability account will record debits to taxpayers' IMF accounts, to prevent excess refunds when it has been determined by Exam that an unallowable deduction is claimed on the return. This posts as a debit to the taxpayer's account (TC 576), and a credit to Account 4950.

  2. Reversal of this debit will be recorded, after the correct tax liability is determined by audit. The reversal transaction is a credit to the taxpayer's account (TC 577) and a debit to Account 4950.

  3. No visible external subsidiary record exists, however, those taxpayer accounts on the IMF marked with the unallowable deductions transaction code make up the balance of this account.

  4. The account will be updated by electronic transmission.

Erroneous Refunds

  1. Erroneous refunds resulting from administrative errors such as, misapplied payments, issuing duplicate refunds, direct deposit errors, and incorrect tax adjustments are classified as Category "D" Erroneous Refunds and are maintained in the Erroneous Refund function. For additional information on Category "D" refunds, see IRM 21.4.5.4.5, Overview of Category D Erroneous Refunds.

  2. The erroneous refunds are controlled in six general ledger accounts. Account 1530, Court Case Erroneous Refund, Account 1535, Criminal Investigation (CI) Court Ordered Restitution Erroneous Refund, Account 1540, Non-Court case Erroneous Refund, Account 1543, Payment Over Cancellation Erroneous Refunds, Account 1545, Identity Theft Erroneous Refunds, and Account 1547, Return Preparer Misconduct Erroneous Refunds.

  3. Each case is controlled with a unique document number on Form 3809, Miscellaneous Adjustment Voucher. This document number allows for the tracking of an individual case from its inception to completion. It is a requirement to use the following format for the Doc-Id (case control number), XXXX-XX-XXXX, (which consists of calendar year, current ECC-MEM cycle of the erroneous refund, and sequence number), on all erroneous refunds in Accounts 1530, 1535, 1540 and 1543.

  4. Cases received through January 31, 2014 with a paper Form 3809 for Identity Theft Erroneous Refunds in Account 1545, the Doc Id format will be 15 digits consisting of the DLN of the Form 813 (without sequence number) plus two digit year plus total volume on Form 813, e.g., 892482619451275. These paper Form 3809s will carry a DLN Blocking Series of 745–749 for a TC 700, and a Blocking Series of 945–949 for a TC 841. Electronic Identity Theft Erroneous Refund cases input via IDRS, the Doc Id format will be 14 digits consisting of the DLN of the transaction with an inflated Julian date, including the sequence number (which should always be 00) plus one digit year, e.g., 89248428940004. The Identity Theft systemic cases will carry a DLN blocking series of 940–999 for both a TC 700 and TC 841. For further RRACS instructions for processing Identity Theft Erroneous Refunds see IRM 3.17.64.16.5, Identity Theft Erroneous Refund New Case Processing and IRM 3.17.64.16.9, Identity Theft Erroneous Refund Cleared.

    Note:

    Any campus receiving new erroneous refunds from a consolidated campus, must include the first letter from that site at the end of the sequence number to identify the initiating campus for 1530, 1535, 1540 and 1543 accounts.

  5. The erroneous refund RRACS windows 480, 481, 485 and 490 provide for the individual control and journalization of erroneous refund case files, after a determination is made as to the type of recovery necessary.

Erroneous Refund Report
(RRACS Report 131)

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

  2. The Erroneous Refund report helps the Erroneous Refund function track erroneous refunds by Doc-Id. This report lists erroneous refunds by Accounts 1530 (court cases), 1535 (CI Restitution court cases) and 1540 (non-court cases). Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount, and current balance.

  3. A copy of the RRACS Erroneous Refund Report 131 should be given monthly to the Erroneous Refund Coordinator in the Accounting Operation however; a quarterly review should be done by the Erroneous Refund team to ensure the doc-id and amount balances to the account.

Identity Theft Erroneous Refunds Monthly Activity Report
(RRACS Report 155A)

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

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

  3. This report will be placed in the DBA icon with the option to save as electronic version.

  4. This report will default to not print and user can retrieve it electronically.

Identity Theft Erroneous Refunds Summary Report
(RRACS Report 155B)
  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report and the current balance will equal to the Monthly Trial Balance Report.

  2. This report will be placed in the SPC Reports Main Menu/Miscellaneous folder.

Identity Theft Erroneous Refunds Open Cases Report
(RRACS Report 155C)
  1. This is a monthly report produced by the RRACS system.

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

  3. This report will be placed in the DBA icon with the option to save as electronic version.

  4. This report will default to not print and user can retrieve it electronically.

Payment Over Cancellation Erroneous Refund Inventory Report
(RRACS Report 0156)
  1. This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

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

  3. This report does not need to be printed unless needed or requested however; a quarterly review should be done by the Erroneous Refund team to ensure the doc-id and amount balances to the account.

Return Preparer Misconduct Erroneous Refund Inventory Report
(RRACS Report 0157)

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

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

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

General Ledger Accounts for Erroneous Refunds

  1. The following general ledger accounts are used for processing erroneous refunds.

Account 1530 Court Case Erroneous Refund
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record erroneous refund receivables that result in a court case. Account 1530 will be supported by copies of bills, IDRS Letter 510C, court documents, and TIGTA reports, debit vouchers, or other documents showing the name of each debtor, amounts receivable, and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

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

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

  4. The external subsidiary record for this account is the file of paper documents described above. For maintaining cases in this account refer to IRM 3.17.80.1.2, Accounts 1530, Employee Fraud and/or Civil Suit Erroneous Refund Court Cases, and Account 1540, Non-Court Case Erroneous Refunds.

Account 1535 CI Court Ordered Restitution Erroneous Refund
(Real Account, DR Normal Balance)
(Kansas City Only)
  1. This receivable account will be used to record erroneous refund receivables that result in a criminal investigation court case. Account 1535 will be supported by copies of Form 3809 and a TXMOD print reflecting the erroneous refund or a copy of the payment voucher received from Criminal Investigation (CI) in Ogden. CI will maintain the original case file.

  2. The external subsidiary record for this account is the Form 3809 described above.

Account 1540 Non-Court Case Erroneous Refund
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record erroneous refund receivables that are NOT court cases. This account represents erroneous refund receivables that have NOT been collected, resulted in a court case, assessed, or been determined uncollectible. Account 1540 will be supported by copies of bills, IDRS Letter 510C, debit vouchers, or other documents showing the name of each debtor, amounts receivable, and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

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

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

  4. Refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations for write-off tolerances.

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

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

  2. RACS will receive Form 3809 with a DLN Doc Code of 58 and a Blocking Series of 850-899.

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

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

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

Account 1545 Identity Theft Erroneous Refunds
(Real Account, DR Normal Balance)
  1. This receivable account will be used to record identity theft erroneous refunds and was effective June 25, 2012. This account represents identity theft erroneous refund receivables which are uncollectible. Account 1545 will be supported by Form 3809. Beginning January 15, 2014, cases that are opened via new IDRS command codes IDT 48 or IDT 58 will be supported by EOD 1640, EOD 1622 and Batch posting 171 report. This account is not under Director's Accountability.

  2. When setting up the case on RRACS, use the journal date for the prepare date. This is only for cases received on paper Form 3809.

  3. Refer to IRM 3.17.243 Miscellaneous Accounting for write-off procedures.

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

Account 1547 Return Preparer Misconduct Erroneous Refunds
(Real Account, DR Normal Balance
  1. This receivable account will be used to record return preparer misconduct erroneous refunds and was effective July 1, 2015. This account represents return preparer misconduct erroneous refund receivables which are uncollectible. Cases that are opened via new IDRS command codes RPM48, or RPM58 will be supported by EOD 1640, EOD 1624 and batch posting 172 report. This account is not under Director’s Accountability.

    Note:

    The statute for Return Preparer Misconduct is 5 years.

  2. The external subsidiary record for this account is the Form 3809, EOD 1640,EOD 1624, and batch posting 172 journal.

    Note:

    Prior to the systemic process, Cincinnati had the paper processing of Form 3809’s.

Account 4910 Disbursement Loss
(Real Account, DR Normal Balance)
  1. This liability account provides internal control for disbursement losses (unrecovered erroneous refunds) from Accounts 1530, 1535 , 1540 and 1543. Cases will be maintained in this account while relief for the accountable officer is requested. See IRM 3.0.167, Losses and Shortages, for additional information.

  2. The case documentation will be used to support the relief request to the Director of Customer Account Services, the Director of Submission Processing, or other Service or Treasury officer with authority to afford relief.

Account 6905 ID Theft Erroneous Refund Write- Offs
(Nominal Account, DR Normal Balance)
  1. This account provides internal control for identity theft disbursement losses and was effective on June 25, 2012.

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

Account 6907 Return Preparer Misconduct Erroneous Refund Write- Offs
(Nominal Account, DR Normal Balance)
  1. This account provides internal control for Return Preparer Misconduct disbursement losses and was effective on July 1, 2015.

  2. When a write-off approval is granted this account will be debited to provide credit to Account 1547, Return Preparer Misconduct Erroneous Refunds. The monthly 173 RRACS batch journal will be the supporting documentation for this account.

Account 6920 Disbursement Write-Off
(Nominal Account, DR Normal Balance)
  1. This account provides internal control and accountability for disbursement losses.

  2. When relief is granted this account will be debited to provide credit to Account 4910, Disbursement Loss. Cases will be maintained in this account after relief for the accountable officer is granted until fiscal year end. For additional information see IRM 3.0.167, Losses and Shortages.

New Erroneous Refund Case Processing
(RRACS Window 480/481)

  1. The RACS function will receive a Form 3809 for each new erroneous refund case to be opened on the RRACS system.

    1. Review each Form 3809 for completeness; including the Doc-Id RRACS account number, taxpayer identification and amount of the erroneous refund.

    2. All Form 3809 in one DLN block should balance to the Form 813.

    3. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, Doc-Id, DLN, money amount and transaction date.

      Note:

      Each Doc-Id must be listed separately on Form 8166. An alternate work listing (calculator tape) may be used.

  2. Journalize Form 3809 to the RRACS system to open each case.

    1. Using the RRACS 480/481 Windows, which can be found under the Accounting Application Main Menu under Erroneous Refund, input each Doc-Id and erroneous refund amount separately.

    2. Use the TC 700 transaction date on Form 3809 when opening the case on RRACS. This transaction date is the date of the erroneous refund (TC 840/846).

    3. The journalization will be a Debit to Account 1530, 1535, 1540 or 1543 and a Credit to Account 4120 (BMF) or 4220 (IMF).

      Note:

      There will only be one journal number for each Form 813 received.

    4. The journal number must be stamped or written on all supporting documentation.

    5. Maintain original Debit side of Form 3809 for Account 1530/1540/1543 in Accounting. Maintain a copy of Form 3809 in Accounting for Account 1535.

    6. Forward Credit side of Form 3809 to MF for processing.

Identity Theft Erroneous Refund New Case Processing Using Form 3809

  1. A Form 3809 for a new BMF identity theft could be received at any time. BMF cases will have a doc code 48 or 58 with a blocking of 940-989.

  2. Beginning August 5, 2014, the RACS function In Cincinnati Only could receive a Form 3809 for a Return Preparer Misconduct (RPM)case. These 3809's will be marked with "RPM erroneous refund" in the remarks section and will also be a debit to the 1545 account. RPM cases will have a doc code 48 or 58 with a blocking of 930-939.

  3. Beginning February 1, 2017, the RACS function, in Cincinnati only, could receive Form 3809 for Non Master File (NMF).

    Note:

    If an IMF IDT case was opened systemically via IDRS command codes IDT48 (TC 841) or IDT58 (TC 700), follow the instructions in section 3.17.64.17.6.1 below.

    1. Each pack of work received will consist of four copies of Form 813, and three copies of Form 3809 (destroy third copy) under cover of Form 3210. Form 3210 will include DLN(s) of the Forms 813 that are being sent. RACS will review the Form 3210 and acknowledge receipt ensuring date of receipt is annotated.

      Note:

      There will be no more than 75 items per Form 813.

  4. Within 24 hours of receipt, the RACS function will assign a Doc-Id (as described in 3.17.64.17(3)) and prepare a Form 8166, using the Doc-Id, and item count, listing each money amount separately from the Form 3809. The total amount listed on the Form 8166 must equal the total on the Form 813. Form 3809 received for BMF IDT or BMF RPM or NMF (CSC Only) for Account 1545, the Doc Id format will be 15 digits consisting of the DLN of the Form 813 (without sequence number) plus two digit year plus total volume on Form 813, e.g., 172482619301475.

  5. Journal the TOTAL amount of each Form 813 listed on the Form 8166, using a 480 window to debit Account 1545 and credit either Account 4120 (BMF) or 4420 (NMF).

    Note:

    For the prepare date on RRACS, use the date of the journal.

    1. Stamp or write the 480 journal number on Forms 3809 and/or Forms 813.

    2. Forward the debit side of Form 3809 and a copy of Form 813 to the Erroneous Refund technician. The Form 3809 should be maintained in Account 1545 file and use in balancing.

    3. If 3809 is for RPM (CSC Only), these 3809's should be kept separately from the IDT cases.

    4. Hand carry one copy of Form 813 to Data Conversion for DLN set up on SCCF.

      Note:

      At the sites discretion the DLN may be established in the Data Control Unit.

    5. Hand carry, the next morning, the credit side of Form 3809 and one copy of Form 813 to Batching for processing under cover Form 3210.

    6. For NMF input the Form 813 information for the credit side into ANMF using the Form 813 Block Control screen and route to the NMF function for input to the ANMF system.

Identity Theft Erroneous Refund New Case Processing Systemically Journaled
  1. Beginning January 15, 2014, ID Theft Erroneous Refunds cases (TC 841 and TC 700) are input via IDRS by the originating function using two new command codes IDT48 (TC 841) and IDT58 (TC 700), using CMODE if necessary, to post to General Ledger Account 1545.

  2. Beginning January 20, 2016, Child Support Identity Theft Offsets will be input via IDRS by the originating function using two new command codes CSO48 (TC841) and CSO58 (TC700), using CMODE if necessary, to post to General Ledger Account 1545.

    1. Normal Identity Theft Erroneous Refunds will become blocking series 940-989 and Identity Theft Child Support Offsets blocking series will now be 990-999.

    Note:

    If RACS receives any paper Form 3809’s after January 31, 2014 contact the SP HQ RRACS Analysts for guidance.

  3. The systemic processing will produce a daily automated Batch Journal 171 to RRACS which will debit account 1545 and credit account 4220. The EOD 1640 will produce the summary (total amount and volume) of the transactions and a new report EOD 1622, which lists the detailed information (DLN, TIN, MFT, tax period, transaction code and money amount) of each transaction, will also be available on Control D, under *EOD1622*.

    Note:

    Beginning May 20, 2014 the EOD 1622 will include the additional taxpayer information listed above.

  4. On a daily basis RACS must balance daily.

    1. Print EOD 1640 (summary) from Control D– There is not a separate page for Identity Theft.

    2. Print EOD 1622 (detail) from Control D.

    3. Balance the total on the RRACS Batch journal 171 to the dollar amount of the EOD 1640 and EOD 1622. They should agree.

    4. If a discrepancy is found in c above, contact SP HQ immediately.

    5. If totals agree, write/stamp 171 journal on both EOD runs.

    6. Forward both EOD runs to the appropriate accounting function that maintains the 1545 account. File the EOD 1640 and EOD 1622 by date for further use.

  5. On a daily basis the accounting area that maintains the 1545 account should scan the EOD1622 and flag those items that have expired. The expired items (if posted on IDRS) can be added to the monthly extract listing to be written-off before end of month.

    Note:

    If a campus chooses to maintain two separate files at their own discretion, then both files MUST be updated.

    Note:

    If there were no systemic records that EOD processed, The EOD 1622 will produce a header record stating there were no records processed. This should be printed and kept for records. Also, If there were no records done systemically, the RRACS system will also produce a 171 transaction failure stating: there were NO DETAIL RECORDS to process for Cycle: nnnnnn

    Note:

    Use OFP 710-01047 on time spent on IDT

Return Preparer Misconduct Erroneous Refund Systemic Journal (New Cases)
  1. Beginning July 1, 2015, Return Preparer Misconduct Erroneous Refund cases (TC 841 and TC 700) are input via IDRS by the originating function using two new command codes RPM48 (TC 841) and RPM 58 (TC 700), using CMODE if necessary, to post to general ledger Account 1547.

    Note:

    If RRACS receives paper Form 3809’s after June 30, 2015 contact the SP HQ RRACS analysts for guidance.

  2. The systemic processing will produce a daily automated batch journal 172 to RRACS, which will debit account 1547 and credit account 4220. The EOD 1640 will produce the summary (total amount and volume) of the transactions. A new report EOD 1624, which lists the detailed information (DLN, TIN, MFT, tax period, TC, and money amount) of each transaction, will also be available on Control D, under *EOD1624*.

  3. Balance RRACS on a daily basis.

    1. Print EOD 1640 summary from Control D (There is not a separate page for Return Preparer Misconduct Erroneous Refund).

    2. Print EOD 1624 detail from Control D.

    3. Balance the total on the RRACS batch journal 172 to the dollar amount of the EOD 1640 and EOD 1624. (They should agree)

    4. If a discrepancy is found in (c) above, contact SP HQ immediately.

    5. If totals agree, write/stamp 172 journal on both EOD runs.

    6. Forward both EOD runs to the appropriate accounting function that maintains the 1547 account. File the EOD 1640 and EOD 1624 by date for further use.

    Note:

    If a campus chooses to maintain two separate files at their own discretion, then both files MUST be updated.

    Note:

    If there were no systemic records that EOD processed, the EOD 1624 will produce a header record stating there were no records processed. This should be printed and kept for records. If there were no records done systemically, the RRACS system will also produce a 172 transaction failure stating : No Detail Records to process for Cycle: nnnnnn

    Note:

    Use OFP 710–01048 on time spent on RPM

Monthly Balancing Procedures - ID Theft and Return Preparer Misconduct
  1. Balancing ID Theft:

    1. Run paper Form 3809s as usual, using the Doc Id and the total money amount.

    2. Run EOD 1622 total for each day for systemically journaled cases.

      Note:

      It is important to ensure if a reversal or write-off was done, to use the adjusted dollar amount and adjusted volume.

    3. Monthly trial balance should equal the RRACS Monthly GL 1545 account and RRACS report 155B.

  2. Balancing Return Preparer Misconduct:

    1. Run paper Form 3809s (Cincinnati only), using the Doc ID and the total money amount on the trial balance.

    2. Run EOD 1624 total for each day on the trial balance for systemically journaled cases.

      Note:

      It is important to ensure if a reversal or write-off was done, to use the adjusted dollar amount and adjusted volume.

    3. Monthly Trial balance should equal the RRACS Monthly GL 1547 account and RRACS report 0157.

      Note:

      Use OFP 420-75830 for monthly balancing of accounts.

Repayment or Partial Repayment of Erroneous Refund
(RRACS Window 480/481)

  1. A repayment or partial repayment of erroneous refund will close the case in Accounts1530/1535/1540/1543 or reduce the debit owed to IRS.

  2. RACS will receive a Form 3809 for each repayment or partial repayment of an erroneous refund case open on the RRACS system.

    1. Review each Form 3809 for completeness; including the Doc-Id, RRACS account number, taxpayer identification and amount of the erroneous refund.

    2. All Form 3809s in one DLN block should balance to the Form 813.

    3. Prepare Form 8166 for journalization.

      Note:

      Each Doc-Id must be listed separately on Form 8166. An alternate work listing (calculator tape) may be used.

  3. Journalize Form 3809s to the RRACS system to close or reduce the balance of each case.

    1. Using the RRACS 480/481 Window, which can be found under the Accounting Application Main Menu under Erroneous Refund, input each Doc-Id and payment amount separately. For prepare date use the current date.

    2. The journalization will be a Debit to Account 4120 (BMF) or 4220 (IMF) and a Credit to Account 1530,1535, 1540 or 1543.

      Note:

      If you receive an error code, see IRM 3.17.64.5.4, Error Conditions, for the explanation.

    3. The journal number must be stamped or written on all supporting documentation.

    4. Maintain original credit side of Form 3809 in Accounting for the 1530/1540/1543 accounts and associate with original debit Form 3809 that opened the case. For Account 1535, maintain a copy of Form 3809 in Accounting and associate with Form 3809 that opened the case. Send original Form 3809 with journal number back to originator.

Erroneous Refund Non-Payment
(RRACS Window 485)

  1. When an erroneous refund is determined to be uncollectible, the ERSED date has expired, or the case is below the tolerance of $50, the case will be transferred from Account 1530/1535/1540/1543 to Account 4910, Disbursement Loss. Documentation kept in the case file will explain why the case is determined uncollectible. A relief request will be prepared by the Erroneous Refund function requesting relief for the accountable officer.

  2. RACS will receive a Form 3809 for each erroneous refund case being sent for relief.

    1. Review each Form 3809 for completeness; including the Doc-Id, RRACS account number, and amount of the erroneous refund.

    2. Prepare Form 8166 for journalization.

      Note:

      Each Doc-Id must be listed separately on Form 8166.

  3. Journalize Form 3809s to the RRACS system to transfer each case sent for relief to Account 4910, Disbursement Loss.

    1. Using the RRACS 485 Window, which can be found under the Accounting Application Main Menu under Non-Payment of Erroneous Refund, input each Doc-Id and amount separately. For prepare date use the current date.

    2. The journalization will be a Debit to Account 4910, Disbursement Loss and a Credit to Account 1530,1535, 1540 or 1543.

      Note:

      If you receive an error code, see IRM 3.17.64.5.4, Error Conditions, for the explanation.

    3. The journal number must be stamped or written on all supporting documentation.

    4. Maintain Debit side (Account 4910) of Form 3809 in the RACS function and associate with original Form 3809 that opened the case. Send Credit side of Form 3809 back to originator.

  4. If the taxpayer makes a payment while the case is journaled to Account 4910, awaiting relief, RACS will receive a Form 3809 for each payment made.

    1. Review each Form 3809 for completeness; including the RRACS account number, taxpayer identification and amount of the payment.

    2. Prepare Form 8166 for journalization.

    3. The end result will be a journal to debit Account 4120 (BMF) or 4220 (IMF) and to credit Account 4910, Disbursement Loss. This will require using both the 480 and 485 windows, which can be found under the Accounting Application Main Menu.

    4. The journal number must be stamped or written on all supporting documentation.

    5. Debit document will be sent for processing and Credit document will be maintained in Accounting and will be associated with original Form 3809 that opened case.

Erroneous Refund Cleared
(RRACS Window 490)

  1. An erroneous refund is considered “cleared” once relief is granted to the accountable officer.

  2. RACS will receive a copy of the erroneous refund relief request signed by either the Director of Customer Account Services, the Director of Submission Processing, or other Service or Treasury officer with authority to afford relief.

    1. Review listing for valid signature and date.

    2. Prepare Form 8166 for journalization.

  3. Journalize the signed relief request to the RRACS system to clear the cases from Account 4910.

    1. Using the RRACS 490 Window, which can be found under the Accounting Application Main Menu under Clear Erroneous Refund, input the total amount of the write-off listing.

    2. The journalization will be a Debit to Account 6920, Disbursement Write-off, and a Credit to Account 4910, Disbursement Loss.

    3. The journal number must be stamped or written on all supporting documentation.

    4. RACS function will keep a copy of relief request and the original will be sent back to originator.

  4. If the erroneous refund is repaid after relief has been granted, RACS will receive a Form 3809 for each payment made.

    1. Review each Form 3809 for completeness; including the RRACS account number, taxpayer identification and amount of the payment.

    2. Prepare Form 8166 for journalization.

    3. Using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications, input the total amount.

    4. The journalization will be a Debit to Account 4120 (BMF) or 4220 (IMF) and a Credit to Account 6920, Disbursement Write-Off.

      Note:

      Credit Account 9998 for prior fiscal-year reversals. Since Account 6920 is a nominal account, at the end of each fiscal year all monies systemically move to Account 9998. For example, if the case was granted relief in FY 10 and a payment was received in FY11, Account 9998 would be credited.

    5. The journal number must be stamped or written on all supporting documentation.

    6. Debit document will be sent for processing and Credit document will be maintained in Accounting and will be associated with original Form 3809 that opened case.

Identity Theft Erroneous Refund Cleared
(RRACS Window 490)

  1. Since there is no accountable officer for identity theft erroneous refunds, authority for "clearing" this type of erroneous refund may not be delegated below the Accounting Operation level.

  2. The extract is received monthly by/on the 8th of each month (some exceptions may apply).

    1. Paper process: Pull F3809s using Form 813 or use Form 8166 for previously written off reversals, (FY 12).
      The Form 813 will be modified to show the cases(s) that were pulled. The item count and the money amounts must be adjusted on Form 813. The campus has the option of using an alternative method, such as a spreadsheet, to document the adjustments that are made to the money and item count for each block. If an alternative method is used in lieu of documenting the Form 813, you must ensure that all pertinent information is maintained and it must be attached to the Form 813.
      Annotate on the Form 813 or alternative method “Write-off” and the journal number.

    2. Systemic process for cases included on the extract which were opened on January 14, 2014 through May 19, 2014:
      •Using the date of the original TC 841/700, research EOD 1821 on Control-D and print the individual Form 5147.(This can be done by searching the DLN. It is not necessary to print ALL Form 5147’s for the entire day.)
      •A copy of the Form 5147 should be stapled to the EOD 1622 to verify the correct account is being written-off.
      •For the corresponding day of TC 841/700 locate the DLN and annotate on EOD 1622 "Write-off" , along with the journal number.
      •Subtract the amount of the write-off from the listing total and the volume count.

    3. Systemic process for cases included on the extract which were opened after May 20, 2014:
      •On the EOD 1622 for the corresponding day of TC 841/700, locate the DLN, TIN, MFT, and Tax Period.
      •Annotate on the EOD 1622 "Write-off" and the journal number.
      •Subtract the amount of the write-off from the listing total and the volume count.

      Note:

      An alternative work listing (spreadsheet) may be used for the systemic processes in (b) and (c) above, but must include adjustments, journal numbers, volume, and money amount, and must be attached to the original EOD 1622.

    4. If a case has expired and was not included in the extract, it will be necessary to adjust the extract.
      •The extract must be notated with the reason for the change.
      • If adding an item, include all information required by the columns on the extract and the reason.
      • If deleting an item, give the reason (e.g., case previously written off), and include any supporting documentation such as the journal number of the previous write off.

    5. Prepare and submit the memorandum(s) along with the extract for IDT theft cases for approval and signature from the Accounting Operation Manager.

    6. The ERRT team will forward the signed memorandum(s), extract and Form(s) 3809 to the RACS Team for journaling.

      Note:

      This information must be kept in the GAO audit file along with the information in 4(f) above.

  3. RACS will receive from the Erroneous Refund team the memorandum(s) signed by the Accounting Operation Manager, one extract ( TC 841/ TC 700) with the corresponding Form(s) 3809.

    1. If a revise memo is needed for any reason, annotate revised on top of new memo and staple revised memo to front of original memo.

    Note:

    Identity Theft Erroneous Refunds have a 5 year erroneous refund statute expiration date (ERSED) and cannot be written off to the GL 6905 until the five years have passed.

  4. Journalize the extract to clear the cases from Account 1545 using the Doc-Id from the original journal.

    Note:

    If more than 75 Doc-Ids are included on the extract, more than one journal number will be needed.

    1. Using the RRACS 490 Window, which can be found under the Accounting Application Main Menu under Clear Erroneous Refund, input each individual Doc-Id and money amount from the extract.

      Note:

      OFP 710-01047 should be used to report the hours spent on journaling however; the volumes of journals is reported to 410-37900.

    2. The journalization will be a Debit to Account 6905, ID Theft Erroneous Refund Write-Off, and a Credit to Account 1545, ID Theft Erroneous Refunds.

      Note:

      In the event an incorrect doc id was entered in a completed journal, it is not necessary to reverse the entire journal. Window 480 should be utilized to make the correction journal of the ONE doc id. Two 480 journals will be necessary for the correction (set-up and closed).

    3. The prepare date will be the date the memorandum(s) was signed by the Accounting Operation Manager.

    4. Stamp/write the 490 journal numbers on the extract and Form(s) 3809.

    5. Forward a copy of the memorandum(s), extract or Form(s) 3809 to the function maintaining the documents, if not RACS, for balancing and GAO audit file as a closed case.

    6. Email the SP HQ RRACS mailbox by the 5th workday of the month with the item count, money amount and journal numbers, if the extract was adjusted provide the reason for the change.

    Note:

    The journalization for each month must be completed by end of month processing.

    Note:

    Campuses should retain the F3809s and extract listing with original signed memo for one year after the account has been written off to 6905, then retire to FRC.

Return Preparer Misconduct Systemic Write-Off

  1. RPM write-off is systemic and will be done through a RACS batch journal on the 15th of the month. The batch journal number will be 173 and will include the Doc-Id. This will credit the account 1547 and debit account 6907.

    Note:

    Return Preparer Misconduct Erroneous Refunds have a 5 year erroneous refund statute expiration date (ERSED) and cannot be written off to the GL 6907 until five years has passed.

  2. If a case included on the batch tape was opened by paper processing (CSC only), adjust the copy of the transfer memo and annotate “write-off” and journal number next to the money amount and adjust total volume. For the new systemic process on the EOD1624 for the corresponding day of TC 841/700, locate the DLN, annotate the EOD1624 “write-off” and journal number, subtract the amount of the write-off from the listing total and the volume count. An alternative work listing (spreadsheet) may be used, but must include adjustments, journal numbers, volume, and monies, and must be attached to original EOD 1624.

  3. Any cases that have expired and were not included in the systemic process can be written off manually. Prepare Form 3809 to debit the 6907 and credit the 1547 account.

  4. To balance the 6907 accounts use the 173 journal and Form 3809s, if applicable.

    Note:

    Use OFP 710–01048 for time spent on RPM.

Reversals of TC 841/700

  1. Forms 3809/3245 will be prepared for any account requiring a reversal of TC 841/700 on an account opened by either a paper Form 3809 or the systemic process. Procedures in IRM 3.17.243.7.4 , Miscellaneous Accounting should be followed prior to sending to RACS.

    Note:

    Every effort should be made to process the forms within 10 working days.

  2. Accounting procedures for reversals where the original case was opened from a paper Form 3809 will not change.

    • The Form 813 will be modified to show the case(s) that were pulled. The item count and the money amounts must be adjusted on the Form 813. The campus has the option of using an alternative method, such as a spreadsheet, to document the adjustments that are made to the money and item count for each block. If an alternative method is used in lieu of documenting the Form 813, you must ensure that all pertinent information is maintained and it must be attached to the Form 813.

    • Annotate on the Form 813 or alternative method “Reversal” and the journal number.

  3. When a Form 3809/3245 is received for a reversal of a TC 841/700 which was opened by the systemic process or paper process, research the DLN (Doc ID) on the RRACS database to ensure the case is still open.

    1. If open and the money agrees, complete the closing journal action to debit 4220 and credit 1545/1547.

    2. If not found or money does not agree, reject back to originator.

  4. On the EOD 1622 for the corresponding day of TC 841/700, locate the DLN, TIN, MFT and Tax Period and annotate on EOD 1622 “reversal” and journal number, and subtract the amount of the reversal from the listing total and the volume count.

    Note:

    For IDT when a reversal has to be done and the original case was opened systemically from January 14, 2014 through May 19, 2014, the EOD 1821 (Form 5147) from the date of the original TC 841/700 should be printed from Control-D. (This can be done by searching the DLN. It is not necessary to print ALL Form 5147's for the entire day.) A copy of the Form 5147 should be stapled to the EOD 1622 to prove the correct account is being reversed. An alternative work listing (spreadsheet) may be used, but must include adjustments, journal numbers, volume, and monies, and must be attached to original EOD 1622.

  5. For RPM on the EOD 1624 for the corresponding day of TC 841/700, locate the DLN, TIN, MFT, and Tax Period and annotate on the EOD 1624 “reversal” and journal number, and subtract the amount of the reversal from the listing total and the volume count. CSC Only- for paper processing use transfer memo to annotate reversal. An alternative work listing (spreadsheet) may be used, but must include adjustments, journal numbers, volume, and monies, and must be attached to original EOD 1624.

  6. Stamp or write journal number on Form 3809/3245 and Form 813(s).

  7. Debit side of Form 3809/3245 with Form 813 will be sent to Batching and a Form 813 to SCCF.

  8. Credit side of Form 3809 will be stapled to EOD 1622/1624.

    Note:

    Due to the validity checks that have been instituted in the command codes IDT48/RPM48 and IDT58/RPM58, most unpostable issues should be eliminated. However, if a TC 841 or TC 700 input via IDRS should go unpostable, it will be identified with a UPC 138-4 for IDT and 138-0 for RPM.

    Note:

    Use OFP 710-01047 on time spent on IDT and OFP 710–01048 for time spent on RPM.

Duplicate or Invalid TC 841 (UPC138-4) or (UPC138-0)

  1. Accounting will receive Form 3809 and Form 4028 for a TC 841 (UPC 138-4) and (UPC 138-0) which will not post due to being duplicate or invalid.

  2. When Form 3809 is received for a reversal of a TC 841 which was opened by the systemic IDT/RPM process, research the DLN (Doc ID) on the RRACS database to ensure the case is still open.

    1. If open and the money agrees, complete the closing journal action to debit 4220 and credit 1545/1547.

    2. If not open or money does not agree, contact the Unpostable team for further research.

  3. On the EOD 1622 for the corresponding day of TC 841/700, locate the DLN, TIN, MFT, and Tax Period and annotate on EOD 1622 “reversal” and journal number, and subtract the amount of the reversal from the listing total and the volume count. An alternative work listing (spreadsheet) may be used, but must include adjustments, journal numbers, volume, and monies, and must be attached to original EOD 1622.

    Note:

    For IDT when a reversal has to be done and the original case was opened systemically on May 20, 2014 and prior, the EOD 1821 (Form 5147) from the date of the original TC 841/700 should be printed from Control-D. (This can be done by searching the DLN. It is not necessary to print ALL Form 5147's for the entire day.) A copy of the Form 5147 should be stapled to the EOD 1622 to prove the correct account is being reversed.

  4. For RPM on the EOD 1624 for the corresponding day of the TC 841/700, locate the DLN, TIN, MFT, and Tax period and annotate on EOD 1624 “reversal” and journal number, and subtract the amount of the reversal from the listing EOD 1624 total and the volume count. An alternative work listing (spreadsheet) may be used, but must include adjustments, journal numbers, volume, and monies, and must be attached to original EOD 1624.

    Note:

    CSC Only - for paper processing use transfer memo to annotate reversal.

    Note:

    These will show as UPC 138-0.

  5. Stamp or write journal number on Form 3809 and Form 4028.

  6. Credit side of Form 3809 will be stapled to EOD 1622/1624.

    Note:

    Use OFP 710–01047 for time spent on IDT and OFP 710–01048 for time spent on RPM.

External Leads Processing (ELP)
Cincinnati and Fresno Accounting Only

  1. Integrity and Verification Operation (IVO) - External Leads receives leads from financial institutions as well as internal leads from business units throughout the IRS. External Leads involve questionable federal tax refunds from financial institutions and various other sources. External leads may involve Treasury checks, direct deposit/ACH, refund anticipation loans or checks and pre-paid debit cards.

  2. There are two ways the IRS receives refund repayments for external leads.

    1. Paper Check Deposit Processing

    2. Electronic Processing via the Collections Information Repository (CIR) Credit Gateway

  3. The External Leads Program processes returned refunds identified as potentially fraudulent. IVO-External Leads completes the research to identify impacted taxpayers, prepares Form 3245, Posting Voucher -Refund Cancellation or Repayment, for application to the appropriate taxpayer account and forwards to the Accounting Operation for processing.

  4. All deposits tickets must be log into Submission Processing Accounting SharePoint for External Bank Leads at: https://organization.ds.irsnet.gov/sites/SPATPBranch/External%20Leads%20Deposit%20Tracking/Forms/AllItems.aspx

  5. Items a-f below must be log in SharePoint with money amount and journal number:

    1. Form 813 (s) total from Form 3245 (s)

    2. Unpostables Reversals

    3. Manual Refunds

    4. Form 1098s

    5. Debit Voucher

    6. Form 3809 (Reversals TC722)

Account 4971, Unapplied External Leads
Real Account, Credit Normal Balance

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

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

  3. Journal using a 210 Window using the original deposit ticket number in the Document # field on the screen.

  4. The external subsidiary file documents are Form 3809s.

Account 6801, Expired External Leads
Real Account, Credit Normal Balance

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

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

  3. In the remarks field of the Form 3809, include the original deposit ticket number and date of deposit.

  4. Attach a copy of the memo from RICS-IVO showing the amount remaining in the 4971 account to the credit side of the Form 3809 (For Account 6801).

  5. Journal using a 400 Window using the original deposit ticket number in the RS# field on the screen.

  6. The credit side of Form 3809 (Account 6801) should be kept in a file by journal date until the next fiscal year is over, then send to FRC.

  7. The debit side of Form 3809 (Account 4971) should be put in the closed file of the 4971 account with all supporting documentation from deposit ticket.

  8. On the Accounting SharePoint, add the money moved to Account 6801 and the journal number.

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

Unapplied External Leads Report
(RRACS Report 132)

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

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

  3. This report should be reviewed quarterly.

Paper Check Deposit Processing
Fresno Accounting Only

  1. RACS receives Accounting package, including deposit ticket, copies of checks and spreadsheet, from Receipt and Control Operation.

    Note:

    Effective July 15, 2013, the Trace ID number must have a "12 " as the System ID.

  2. RACS forwards the entire Accounting package to the appropriate Accounting function to:

    1. Log the deposit ticket into the External Lead Processing (ELP) log found on the Submission Processing, Accounting and Tax Branch SharePoint, see IRM 3.17.64.17 for link to SharePoint.

    2. Prepare a one-sided Form 3809 (credit to GL Account 4971), using the same amount of the deposit ticket.

    3. In the explanation field of the Form 3809 include ELP, DT #XXXXXX, the date of DT and source (i.e., Bank Name, Original deposit entity). If no spreadsheet, notate "no listing."

    4. Copy of deposit ticket will be maintained in the Account 4971 file.

    5. Forward the deposit ticket, Form 3809, and a copy of the spreadsheet to RACS within 24 hours.

  3. RACS will balance and journal to the appropriate General Ledger accounts, via the RRACS system using a 210 Window:

    1. Debit Account 2410 (TAS 20x0903) and credit Account 4971, Unapplied External Leads.

    2. On the Debit side, Treasury number will be the deposit ticket number.

    3. On the Main Transaction Window, scroll down and highlight Unapplied External Leads.

    4. On the Credit side, (Main Source Journal) the Document # input must be the deposit ticket number.

    5. On the Summary Screen, verify the accounts, money and both document numbers are the same as the Deposit ticket number.

    6. Stamp the journal number on the Form 3809 and DT.

    7. If amount of deposit ticket is $100,000 or greater, keep a copy for the TID report.

  4. Using Form 3210, RACS will send the Form 3809 and a copy of the spreadsheet to the appropriate Accounting function to:

    1. Update the ELP log to include the first journal found on the Submission Processing, Accounting and Tax Branch SharePoint.

    2. Maintain the Form 3809 in case file for Account 4971.

Electronic Payment Processing
Cincinnati and Fresno Accounting Only

  1. Log into Collections Information Repository (CIR) to retrieve and print External Lead Processing (ELP) deposit ticket(s) and Automated Clearing House (ACH) detail report.

  2. Send a copy of the deposit ticket and the ACH detailed report via email to your Integrity and Verification Operation (IVO)-External Leads contacts EXCEPTION: If Accounting receives a spreadsheet before the deposit is retrieved from CIR, continue with step 5 below.

  3. IVO-External Leads will research and email the spreadsheet(s) from the bank that equals the deposit within 24 hours.

  4. If IVO-External Leads verifies there is no spreadsheet, IVO-External Leads will prepare and send a supporting documentation letter to Accounting within 24 hours, stating the originating deposit entity, deposit ticket number and deposit total. This documentation will have a brief statement that no external leads were available for this deposit. These items will remain in Account 4971. Accounting will file the IVO-External Leads letter with the Form 3809 to substantiate the Account 4971 account balance, proceed to next step.

  5. Print spreadsheet(s) and compare deposit ticket total to the total of the spreadsheet(s) received in email from IVO-External Leads. These totals should match.

  6. Assign a TRACE ID number to the deposit ticket (DT) using the Batch Block Tracking System (BBTS). Effective July 15, 2013, the Trace ID number must have a "12 " as the System ID.

  7. Forward a copy of the deposit ticket with Trace ID assigned to IVO-External Leads and Receipt and Control.

  8. Forward the original deposit ticket and corresponding spreadsheet (if available) to the appropriate Accounting function to:

    1. Log the deposit ticket into the External Leads Processing (ELP) log found on the Submission Processing, Accounting and Tax Branch SharePoint, see IRM 3.17.64.17 for link to SharePoint.

    2. Prepare a one-sided Form 3809 (credit to GL Account 4971) for the same amount of the deposit ticket.

    3. In the explanation field of the Form 3809 include ELP, DT #XXXXXX, the date of DT and the source (i.e., Bank Name(s), Original deposit entity).

    4. If IVO-External Leads letter is received, log in SharePoint and maintain in Account 4971.

  9. Forward the deposit ticket, Form 3809, and a copy of the spreadsheet (if available) to RACS within 24 hours of receipt.

  10. RACS will balance and journal to the appropriate General Ledger accounts, via the RRACS system using a 210 Window:

    1. Debit Account 2410 (TAS 20x0903) and credit Account 4971, Unapplied External Leads.

      Note:

      The TAS for any external lead deposit will always be 20X0903, even if the CIR deposit ticket does not show it.

    2. On the Debit side, Treasury number will be the deposit ticket number.

    3. On the Main Transaction Window, scroll down and highlight Unapplied External Leads.

    4. On the Credit side, (Main Source Journal) the Document # input must be the deposit ticket number.

    5. On the Summary Screen, verify the accounts, money and both document numbers are the same as the Deposit ticket number.

    6. Stamp the journal number on the Form 3809 and DT.

    7. If amount of deposit ticket is $100,000 or greater, keep a copy for the TID report.

  11. Using Form 3210, RACS will send the Form 3809 and a copy of the spreadsheet (if available) to the appropriate Accounting function to:

    1. Update the ELP log to include the first journal found on the Submission Processing, Accounting and Tax Branch SharePoint, see IRM 3.17.64.17 for a link to SharePoint.

    2. Maintain the Form 3809 case file for Account 4971.

    Note:

    Some deposits may not receive a Form 3245 to be applied to an account. The deposit amount will stay in Account 4971. As supporting documentation, IVO-External Leads will provide a letter with deposit information, a list and total amount of leads where no Form 3245 was prepared. This will be maintained in Account 4971 account file with the Form 3809 and the research checklist that IVO-External Leads provides per deposit lead.

Processing of Form 3245, Posting Voucher - Refund Cancellation or Repayment for ELP

  1. Accounting will receive Form 813, Form(s) 3245 with TRACE ID numbers from Receipt and Control or a memo from IVO within 15 working days from the date of the deposit ticket barring any delays or large leads. If after 19 working day and Accounting has not received vouchers or a memo , Accounting should contact IVO in their campus.

    Note:

    Form(s) 3245 should be balanced, journaled and released to Batching within six working days of receipt from Receipt and Control.

    1. Ensure each Form 3245 includes the DT number and TRACE ID.

  2. Ensure the Form 813 balances to the Form(s) 3245 received from Receipt and Control.

  3. Ensure the Form 813 and Form(s) 3245 balance to original deposit ticket.

    Note:

    Some deposit tickets will not be completely resolved and the deposit will remain in GL 4971 Supporting documentation for these monies remaining in GL 4971 will be supplied by IVO-External Leads and maintained in the Account 4971 account file with the Form 3809.

    If And Then
    All Form(s) 3245 are received Equal the amount of the original deposit Prepare a one-sided Form 3809 (debit to GL Account 4971) for the total of the Form(s) 3245 and Form 813
    All Form(s) 3245 are received Does not balance to original deposit ticket amount Contact IVO-External Leads for guidance/resolution
    Partial Form(s) 3245 are received Less than the amount of the original deposit ticket Prepare a one-sided Form 3809 (debit GL Account 4971) for the total of the Form(s) 3245 and Form 813
    1. Run an adding machine tape to subtract the amount received from the original Form 3809

    2. Attach a copy of the adding machine tape to the one-sided Form 3809

    3. Continue this process with all closing Form 3809(s) until there is no money left open for that deposit ticket number (see Note above).

    Partial Form(s) 3245 are received The deposit ticket amount has been previously reduced and there is enough money remaining in the deposit ticket total Prepare a one-sided Form 3809 (debit to GL Account 4971) for the total of the Form(s) 3245 and Form 813
    1. Run an adding machine tape to subtract the amount received from the remaining balance on the original Form 3809

    2. Attach a copy of the adding machine tape to the one-sided Form 3809

    3. Continue this process with all closing Form 3809(s) until there is no money left open for that deposit ticket number (see Note above).

    Form 3245 with IVO-External Leads letter received together Voucher plus letter equal to deposit ticket
    1. File letter in Account 4971

    2. Prepare Form 3809 for amount of vouchers

    Only IVO-External Leads letter IVO-External Leads letter equal to deposit ticket File IVO-External Leads letter in Account 4971.
  4. In explanation field of Form 3809, include "ELP" , the 1st journal 210xxxxxxxxxxxx and DT#XXXXXX.

  5. Using Form 3210, send the Form 813, Form(s) 3245 and Form 3809 to RACS.

  6. RACS will balance Form(s) 813 to Form(s) 3809 and journal to the appropriate General Ledger accounts via the RRACS system.

    1. Debit 4971 and credit 4120/4220 (SCCF) via RRACS 400 window. Make sure the ORIGINAL Deposit Ticket Number is used in the RS# field on the screen.

    2. In message on RRACS cross reference the 1st journal 210xxxxxxxxxxxx and the DT#.

  7. RACS will forward:

    1. Form(s) 3245 with Form 813 to Batching in a brown folder

    2. The duplicate Form 813 and Form 3809 to appropriate Accounting function

  8. Establish the Form 813 DLN on SCCF.

  9. The following day Data Control will verify the DLN, count and money to SCF1142 against Form 813.

  10. Update the ELP log with the second journal, attach closing Form 3809 with adding machine tape, if applicable, to original Form 3809. Maintain the Form 3809 in case file as closed.

Monthly Balancing of ELP

  1. A monthly trial balance spreadsheet is required for GL Account 4971.

    1. Use the opening amount of each Form 3809 if no applications have been made; or

    2. Use the remaining balance left on each opening Form 3809 (which would be found on your adding machine tape totals).

    3. When reporting on the Form 3997, the volume should be the number of Form 3809s still open in Account 4971.

  2. A monthly trial balance spreadsheet is required for GL Account 6801.

    1. Use the amount of each Form 3809.

    2. When reporting on the Form 3997, no volume is required for Account 6801.

Reversal of External Leads Funds

  1. When it is determined by IVO-External Leads that External Leads funds were given to IRS in error, Accounting will receive a Form 3809, with a TC 722 to reverse the TC 720 posted to the taxpayers account. Form 3809 must include the original deposit ticket number and the general ledger Account (4430 or 4971) to be credited. Ensure there is a TC 720 posted to the taxpayer account to be reversed.

    Note:

    If the funds from the TC 720 are prior to December 10, 2012 , Accounting will receive a Form 8758. A TC 722 should be used to add to Account 6800, Excess Collections.

  2. Forward Form(s) 3809 to the Accounting function for numbering and journaling.

  3. Accounting will number Form 3809 (debit side) using a 48 doc code and a 509 blocking series, prepare Form 813.

  4. Journal using a 400 window as a debit to Account 4120/4220 and a credit to Account 4430/4971 or 6800.

    Note:

    If crediting Account 4971, ensure the ORIGINAL deposit ticket number is used in the RS# field on the screen if the original deposit is still open. If the original deposit is closed out of Account 4971, ensure the ORIGINAL deposit ticket number and date e.g.,111111 01012012 is used in the RS# field on the screen.

    1. Stamp or write journal number on all Form(s) 3809 and Form 813.

    2. Hand carry the debit side of Form(s) 3809 and Form 813 to Batching under cover Form 3210.

    3. Forward second copy of Form 813 to Data Control for input to SCCF.

    4. Forward credit side of Form(s) 3809 to the Accounting function maintaining Account 4430/4970/4971 for filing.

  5. Once the Form 3753 is prepared by IVO-External Leads and processed, the Accounting Function maintaining the Account 4430/4971 will receive a copy of Form 3753 to associate with the Form 3809, closing the item.

    Note:

    If the original external lead has not been applied to a taxpayer account, Accounting will not receive a Form 3809 for a TC 722, they will only receive a Form 3753 for the manual refund with the backup documentation (see IRM 3.17.79.3.1, General Ledger Account - Types of Refunds) and a new memo from IVO-External Leads.

    Note:

    If this refund is returned from the bank via Form 1098 Refund Cancellation schedule, a Form 3245 will be routed to the maintainer of the 4971 account. The maintainer of the 4971 account will alert RICS IVO via email of the refund check cancellation.

Reversal of Credit Gateway External Leads (Within 48 Hours of Receipt)
  1. When it is determined by a bank that a CIR deposit was made to the IRS in error, an email will be sent to the Accounting Point Of Contact (POC) in either Fresno or Cincinnati from the bank, requesting that the funds be returned.

    Note:

    The Fresno Accounting POC is Karen Wong 559-454-6059. The Cincinnati Accounting POC is Lori A. Schuchter 859-669-2743.

  2. If the request is made within 48 hours of receipt, the Accounting POC will initiate a reversal for the whole or partial amount of the original deposit using the Credit Gateway ACH Return Form which can be found on the BFS website.

    Note:

    If the request was made after the 48 hour timeframe, follow the instructions above in 3.17.64.17.8.

  3. Follow instructions on the Credit Gateway ACH Return Form and email the request to Customer.Care@usbank.com.

  4. Once the request is processed, Accounting will see a debit voucher in CIR and if applicable, a new deposit ticket for the new amount.

  5. Accounting will journal the original deposit ticket, debit voucher and new deposit ticket (if applicable).

Posted External Leads Causing Unpostable TC 740 or TC 841 (Not related to Identity Theft)

  1. When it is determined that a posted TC 720 is causing a TC 740 or TC 841 (not related to Identity Theft) to be unpostable, Accounting will receive a Form 3809, with a TC 722 to reverse the TC 720 posted to the taxpayers account. Form 3809 must include the original deposit ticket number, date and the general ledger account (4430, 4971, 4620 or 6800) to be credited. Ensure there is a TC 720 posted to the taxpayer account to be reversed.

    Note:

    If the funds from the TC 720 are prior to December 10, 2012, Accounting will receive a Form 8758 to add to Account 6800, Excess Collections.

  2. Accounting will number Form 3809 (debit side) using a 48 doc code and a 509 blocking series, prepare Form 813.

  3. Journal using a 400 window as a debit to Account 4120/4220 and a credit to Account 4430/4971/4620/6800.

    1. Stamp or write journal number on all Form(s) 3809 and Form 813.

    2. Hand carry the debit side of Form(s) 3809 and Form 813 to Batching under cover Form 3210.

    3. Forward second copy of Form 813 to Data Control for input to SCCF.

    4. Forward credit side of Form(s) 3809 to the Accounting function that maintains the account.

Resolving an Unpostable TC 720 With a TC 841 Posted

  1. The Erroneous Refund team will verify TC 841 on taxpayer's account.

  2. The Erroneous Refund team will prepare a Form 3245 for a TC 843 to debit the TP account. A DLN needs to be assigned using a 45 Doc Code and a 540-549 blocking series to the debit portion. Prepare Form 813.

  3. A Form 3809 will be prepared for the credit side to the RRACS GL Account, include the TP TIN, money and transaction date and in explanation field include Doc-Id. Prepare Form 813 and forward to RACS.

    Note:

    Research will need to be done to determine which GL account the TC 841 money is journaled to (Account 1545, 6905, 9998).

    1. Debit the taxpayer (Account 4120/4220) account using from Form 3245.

    2. Credit either Account 9998, 6905, or 1545 accounts using the Form 3809.

    3. RACS will journal using a 400 window for Account 9998 or Account 6905 and a 480 window for Account 1545.

  4. Stamp or write the 400/480 journal number on Form 3425 and Form 3809 and Form 813.

  5. RACS will hand carry Form 3245 and Form 813 to Batching under cover of Form 3210 so that the Form 3245 can be batched and sent to ISRP for transcription.

  6. RACS will give the Form 3809 credit side to the area maintaining the General Ledger account on the credit side of the document.

  7. The Erroneous Refund team will Monitor daily for TC 843 posting to TP account and ensure TC 470 or STAUP actions are taken to stop an incorrect notice.

  8. Once the TC 843 has posted then re-input the document for processing.

Fund Adjustments Reclassifications

  1. Any transfer of amounts between funds, or within the same fund, requires reclassification. Transactions requiring reclassification are:

    1. Transfers of revenue receipts from one tax class to another (source documents are Form 2424, Form 813, and IDRS recap, Page 4)

    2. Credits classified incorrectly on deposit tickets (source documents are SF 215-A, Form 813, and IDRS recap, Page 3)

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

    4. Manual refunds from general fund accounts (source document is SF 1166)

    5. Rejects and nullified unpostables renumbered to different tax classes or different funds.

    6. Refund repayments deposited as revenue receipts.

    7. Reclassification of child support payments.

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

    9. ECC generated reclassification of posted corrected unpostables (source document is the Control Data Run 02 Project 160 - See reference to RRACS Input Reconciliation Sheet below).

    10. Adjustments between budget clearing accounts, and refund repayment receipts or revenue receipts.

    11. Reclassification of anti-drug special funds.

  2. If entries are made from source documents, journalize from prior window input, or Form 8166. If entries are subsequent to a journal input on another window, the journal number of the prior window will be used as Doc-Id number for this window. If journal number is not used for Doc-Id, input journal number in the message. This builds in an audit trail. The adjustment to the various fund receipt accounts are summarized in the Deposit Ticket Classification Report.

  3. Transcribe or stamp journal identification number on listings to provide a sufficient audit trail.

Net Tax Refund Report (NTRR) Line Numbers for Refunds with an MFT 46

  1. During a GAO audit, it has been found that money fed into the Net Tax Refund Report. (NTRR) from MFT 46 was being input as line 99 when it should have been line 65. Because RRACS uses line codes to derive its tax classes, the NTRR reporting is inaccurately categorizing MFT 46 money into the wrong tax class.

  2. Every service center must check their NTRR for this incorrect line data. To correct this situation, beginning with FY 2013, the RRACS DBA must complete a 905 journal for a reclassification FOR MFT 46 REFUNDS, excluding Arbitrage ONLY to move the funds from Line 99 to Line 65. This information can be found on the Form 3753.

    Note:

    Only one cumulative 905 reclass journal will need to be completed for the combined months of October through December 2012. This reclass journal must be completed prior to month end closing for December 2012.

  3. Beginning in January 2013 and until further notice, this 905 reclass journal will need to be completed each month prior to month end closing, if applicable. A UWR is scheduled to be implemented in 2014 to correct this issue.

Insolvency
(Ogden Only)

  1. Bankruptcy law is the prevailing authority when a taxpayer files bankruptcy. Bankruptcy laws are separate from tax laws, and coordination is necessary to comply with both. Insolvency, a part of the Collection function for the Small Business/Self Employed Operating Division of the IRS, is responsible for administering that coordination.

General Ledger Accounts for Insolvency

  1. The following accounts will be used to process insolvency deposits and payments.

Account 4625 Insolvency Suspense
(Real Account, CR Normal Balance)
(TAS 20F3820)
  1. This liability account is used to hold and control amounts received from court trustees for making payments before classification. These payments will be recorded and controlled by document number as unclassified receipts (Account 7009).

  2. Once the Insolvency Unit has entered the data to AIS, which creates a posting document, Receipt and Control will post the credit to the taxpayer's account via IDRS.

  3. RACS will use the Area Office Remittance Register (AORR) journal sheet to remove the money from Account 4625 and classify to the correct tax class.

  4. When a payment is unprocessable, the Insolvency Unit will send documentation to move this money to the unidentified account to be refunded.

  5. This account is supported by individual records in RRACS. Application must not exceed the credit available in the individual record. The external subsidiary file is a listing of the checks with the case number.

Account 7009 Insolvency
(Real Account, DR Normal Balance)
(TAS 20F3820)
  1. This account will represent those amounts that have been received from trustees on a deposit ticket, but not yet reported as classified by IRS.

  2. The AORR will be used to classify these receipts to the appropriate tax classes.

Insolvency Suspense Report
(RRACS Report 139)

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

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

Insolvency Processing
(Ogden Only)
(RRACS Window 210/498)

  1. Insolvency checks are received in the Philadelphia Campus Support function. The checks are scanned into OTCnet, and electronically transmitted to the FRB for deposit. The deposit ticket will be retrieved via OTCnet the following morning by the Ogden Accounting function.

  2. Each deposit will have a unique Doc-Id. The Doc-Id is created by using the Trace ID.

  3. Philadelphia (Campus Support) will:

    1. Daily, scan received checks into the PCC computer (information will be transmitted to FRB at the end of the day). These payments will be run on Ogden's ALN and included in their deposit.

    2. The following day, fax Form 784 with the Doc-Id noted to Ogden's Accounting Function at (801) 620-6198/6856.

  4. Ogden (Accounting) will:

    1. Daily, Insolvency Technician will access OTCnet and retrieve all electronic deposit tickets and debit vouchers associated with payments input by Philadelphia.

    2. The technician will print 2 copies of the deposit ticket and create spreadsheet for that deposit.

    3. Accounting Technician will journal the deposit ticket to RRACS using window 210, found under Deposit, debit Account 7009 and credit Account 4625.

  5. Debit side - Deposit (Apply) (Add):

    1. Input deposit ticket number in Treasury field.

    2. Input deposit date (settlement date from the ticket).

    3. Source code must be IDRS (add).

    4. Debit Account 7009.

  6. Credit side - (scroll down to Insolvency (Add)):

    1. Input Doc-Id number in document number field.

    2. Input deposit ticket date.

    3. Input "4625 INSOL" in deposit ticket number field.

    4. Credit Account 4625.

    5. Check summary.

    6. Post to generate 210 journal number.

    7. Write or stamp journal number on deposit ticket and its copy.

    8. Place the original deposit ticket in bin for CIR technician.

  7. Processing Debit Vouchers:

    1. Print two copies of the debit voucher.

    2. Retrieve a copy of the dishonored check (using CIRA feature on OTCnet, query the unique ID from the debit voucher).

    3. Hand carry copy of debit voucher to DCF to be added to the DCF file.

    4. Journalize the debit voucher to RRACS.

    5. Fax a copy of the debit voucher, detail report, and dishonored check to the CIO at Philadelphia.

  8. The AORR generated daily reflects the Form 3244 and/or listing information input via command code PAYMT. Perform the normal balancing routine by comparing the amounts on the Form 3210, Doc-Id order, and spreadsheet, against the AORR to ensure the amounts match.

    Note:

    The amount of the AORR should equal the deposit ticket(s), as there should not be any additional types of area office deposits/payments input at the Philadelphia campus.

  9. AORR EOD 1640 NOTE: If the AORR has more than one Doc-Id, note each Doc-Id and the amount to be journalized from each number.

    1. PSC will fax Form 3210 for all Form(s) 3244/listing input through CC PAYMT. The Doc-Id will be listed on both forms for Insolvency Technicians to balance.

    2. Debit Account 4625 - use amount from AORR associated with each Doc-Id.

    3. Credit MF Accounts 4120 and/or 4220 found on EOD 1640, Page 6, and tax class tape totals from EOD 1640 (NMF items will need to be transferred to Cincinnati).

    4. Reclass using same 498 journal - Input money amount to 7009 then use EOD 1640 to debit the tax class.

  10. Use 498 Recover Insolvency window (accounting application; recover insolvency)

    1. Use insolvency number as input into the Doc-Id number field.

    2. Prepare date is the date of AORR (add).

    3. Debit Account 4625 (if more than one Doc-Id, click okay and input next Doc-Id, date of AORR, and money amount for that id).

    4. Credit in RS field- the insolvency number input on the debit side should systemically generate (add) Credit 4120 and/or 4220, as appropriate.

    5. Reclass Account 7009 and tax class (use Form 813-A for appropriate tax class). NMF items should be transferred to Cincinnati.

    6. Write or stamp journal number on AORR.

    7. Insolvency unit will pull AORR from Control D.

    8. Send original AORR to Data Control.

    9. Send copy of AORR to Insolvency Technician.

    10. Maintain AORR folder in Accounting.

  11. Maintaining suspense account:

    1. Using the supporting backup, input the deposit ticket and check information onto the Excel Insolvency Suspense spreadsheet. Input the Julian date, DT number, and DT date. List each check separately under the deposits column on the spreadsheet. The spreadsheet currently allows for a maximum of seven checks. Input the journal number of the DT (210 journal number).

    2. File tickets in date order in folder.

    3. The Insolvency function will prepare the substitute Form 3244 used to apply the payments to the taxpayer's account via CC PAYMT. The Campus Support Team will be responsible for inputting the information via CMODE/PAYMT, using the Form 3244s. This information will be reflected in the AORR. The information will be balanced back to the documents and checks, and journalized by the RACS unit. This will be journalized as a debit to Account 4625.

    4. When all checks have been applied using an AORR run, note 'Closed' on the spreadsheet.

    5. Initiate follow-up with Campus Support for any case that is not closed within 15 days.

  12. Each Monday morning, E-mail the Insolvency Suspense spreadsheet, which includes all journals up to and including the prior Friday, to the Campus Support Team Manager.

    Note:

    Each Friday the Insolvency Report (RRACS 0139) should be balanced back to the Insolvency Suspense spreadsheet, prior to emailing the report. The RRACS DBA will provide this report.

  13. Each month, a trial balance must be completed for the Insolvency Suspense Account 4625. This will ensure that all cases are closed out timely. Only open case files are reflected on trial balance. The net figure for Account 4625 will always be a credit or zero balance since all cases are opened as a credit to the account.

  14. Backup reports to support the trial balance will include:

    1. RRACS Report 004 - Monthly General Ledger Trial Balance showing the cum debit and credit figures for Account 4625, as well as the net amount remaining on the account.

    2. RRACS Report 0139 - Insolvency Suspense Report listing all cases for the current month ending stamped on the report. This list includes all cases from the prior month that did not close until current month ending.

    3. Print of the Insolvency Suspense Report that corresponds to the month being balanced.

  15. Complete the trial balance spreadsheet (showing debits without brackets and credits with brackets):

    1. Input the debit from RRACS Report 004 as a positive amount for RRACS 051 DR-AMT-CUM figure.

    2. Input the credit from the RRACS Report 004 as a negative amount for the RRACS 051 CR-AMT-CUM figure.

    3. Under the source document column, list the Doc-Id for all open case files. Use the actual case files to determine which cases remain open. The spreadsheet can be used to confirm open cases, however, the actual case file (document) must be used to run the trial.

    4. In the column next to each Doc-Id, list the remaining balance for each case file as a negative figure.

  16. When all open case files have been listed, the remaining balance should be zero. If there is an imbalance:

    1. Check the RRACS Report 0139 for 210 journals under the beginning balance column that may not have a case file, or check the adjusted amount column for a 498 journals that may not have been used to close out a check on a particular case file.

    2. As a secondary check, mark each remaining balance on the insolvency suspense spreadsheet against the current balance on the RRACS Report 0139 to ensure they match.

  17. Forward the balanced trial to management for approval and initialization. The original trial and all backup should be forwarded to the Form 3997 Technician in the RACS function. A copy of the trial with all backup should also be provided to the Data Control Team 103. Maintain another copy of the trial and backup documents in the front of the closed case file folders for that month.

Losses and Shortages

  1. The following are the four types of Losses and Shortages accounts:

    1. Account 7610 Embezzlement, Thefts and Negligence

    2. Account 7620 Unexplained Losses

    3. Account 7649 ECP Deposit Discrepancies

    4. Account 7650 Deposit Discrepancies

  2. These accounts are supported by individual records in the Losses and Shortages file within RRACS. Each individual record requires its own Doc-Id.

  3. Unless known to be otherwise, tax class will always be 2.

  4. Source documents related to losses and shortages are:

    1. Form 3244

    2. Memoranda granting relief for losses or shortages other than by payment.

    3. Memoranda or letters stating losses or shortages.

    4. Form 2424

  5. Journal entries are made from individual documents and Form 813. If entry is a debit, a new Doc-Id is required. If entry is a credit, the Doc-Id must be the same as the individual loss or shortage case already established on RRACS. If there are any problems with the Doc-Id, request journal research.

Loss and Shortage Recovery Support Report (RRACS 0577)

  1. This is a monthly report produced by the RRACS system. It shows all open embezzlement, deposit discrepancies, undeposited collections (only used for transfer of director's accountability) and unexplained losses. The total money amount must equal the open case files.

Electronic Check Processing (ECP) Deposit Discrepancy Support List (RRACS 0576 Report)

  1. This is a monthly report produced by the RRACS system. It shows all open ECP (Lockbox) Deposit Discrepancies. The total money amount must equal the open case files.

General Ledger Accounts for Losses and Shortages

  1. The following accounts are used for processing and closing loss and shortage cases.

Account 6900 Adjustment or Correction of Revenue Receipts
(Nominal Account, DR Normal Balance)
  1. This account is for adjustments or corrections of revenue receipts, and for reclassification of revenue receipts to and from other general ledger accounts.

  2. This account records relief granted by the Service or Treasury for losses and shortages of collections without reimbursement (See 31 USC. Secs. 3527 and 3528).

  3. This account also covers special cases for adjustments or corrections in revenue receipts. These would include shortages that have been assessed against an employee or former employee, under Section 7804(c) of the Code, and payment was reported as tax instead of relief from shortages.

  4. This account may also be used for other items authorized by Treasury or CFO, such as reclassification of funds between the revenue receipt accounts, and the Anti-Drug Special Fund, and the Informant Reward Special Fund.

  5. No external subsidiary record is maintained, however, documentation supporting each entry must be on file.

Account 6901, ECP Adjustment of Revenue
(Nominal Account, DR Normal Balance)
  1. This account represents adjustments to revenue for ECP deposit discrepancies. The Submission Processing (SP) Campus Director(s) will not be accountable for these adjustments.

  2. When approval is granted by the Field Director, Submission Processing, this account will be debited to provide credit to Account 7649, ECP Deposit Discrepancies.

  3. This account will be credited when an ECP deposit discrepancy is repaid after approval has been granted. Credit Account 9998 for prior fiscal-year reversal.

Account 7610 Embezzlement and Thefts
(Real Account, DR Normal Balance)
  1. This asset account is used to record cash shortages of collections, losses from robbery or theft, embezzlement of collections, and counterfeit bills. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation as detailed in IRM 3.0.167, Losses and Shortages. This account is included in the accountability of the accountable officer.

  3. When opening a new case in Account 7610, the case file number and the Doc-Id input to RRACS should be the same number. Both numbers should be the case number provided by TIGTA on the initial memo received from TIGTA.

    Note:

    No TIGTA memo will be received for counterfeit bill cases. When opening the case on the RRACS system into Account 7610, use the Trace ID number (located on the debit voucher) plus the letter (C). If no debit voucher is received, use the Trace ID on the original deposit ticket plus the (C). Example: 89252009292001C

  4. All monies applied to this account will no longer be reflected on the SF 224 under TAS 200110. However, if it is re-classified it will show on the SF 224 under the re-classification TAS.

Account 7620 Unexplained Losses
(Real Account, DR Normal Balance)
  1. This asset account is used to record unexplained losses. An unexplained loss includes deposit discrepancies that cannot be collected under the Federal Claims Collection Act. When the Service cannot establish the bank's liability for a deposit discrepancy, the loss is considered unexplained. Unexplained losses of $10,000 or more require Treasury's approval. For additional information on unexplained losses refer to IRM 3.0.167, Losses and Shortages.

  2. This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation, as detailed in IRM 3.0.167, Losses and Shortages. This account is included in the accountability of the accountable officer.

  3. All monies applied to this account will no longer be reflected on the SF 224 under TAS 200110. However, if it is re-classified it will show on the SF 224 under the re-classification TAS.

Account 7649 ECP Deposit Discrepancies
(Real Account, DR Normal Balance)
  1. This asset account is used to record amounts of ECP deposit discrepancies which are discovered by the lockbox depositories only. These items are considered true deposit shortages for accountability purposes. The balance in this account represents the total amount of such losses or shortages for which reimbursement may be obtained, or for which approval may be granted.

  2. Account 7649 is supported by reports and/or case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation, as detailed in IRM 3.0.167. This account is NOT included in the accountability of the accountable officer.

    Note:

    Treasury will now become the accountable officer for any unresolved lockbox deposit discrepancy, instead of the lockbox financial institution. The Submission Processing (SP) Campus Director(s) will not be accountable for these discrepancies.

  3. All monies applied to this account will not be reflected on the SF 224 under TAS 200110. However, if it is re-classified it will show on the SF 224 under the re-classification TAS.

Account 7650 Deposit Discrepancies
(Real Account, DR Normal Balance)
  1. This asset account is used to record amounts of deposit discrepancies which are discovered by the depositories. This account may also be used when the Payment Tracer function has unresolved encoding errors, where extensive research has been completed, and the credit cannot be located. These items are considered true deposit shortages for accountability purposes. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. Account 7650 is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation, as detailed in IRM 3.0.167, Losses and Shortages. This account is included in the accountability of the accountable officer.

  3. All monies applied to this account will no longer be reflected on the SF 224 under TAS 200110. However, if it is re-classified it will show on the SF 224 under the re-classification TAS.

New Embezzlement or Loss Case Processing
(RRACS Window 306)

  1. The Receipt Loss Coordinator in Accounting will receive a memorandum from TIGTA identifying the injured taxpayer.

  2. Receive Form 2424 or Form 3809 and Form 813 with the injured taxpayer's information and amount of loss. Include on the Form 2424 or Form 3809 the TIGTA case number. All information can be found on the memorandum received from TIGTA.

  3. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, Doc-Id, DLN, money amount, and date of loss.

  4. Journalize Form 2424 or Form 3809 to the RRACS system to open the case.

    1. Using the RRACS 306 Window, which can be found under the Loss Main Menu under Loss, Embezzlement and Theft, input each Doc-Id and loss amount separately.

    2. Use the date of loss as the action date when opening the case on RRACS. Use the TIGTA Case number as the Doc-Id on RRACS.

    3. The journalization will be a Debit to Account 7610 and a Credit to Account 4120 (BMF) or 4220 (IMF).

    4. The journal number must be stamped or written on all supporting documentation.

    5. Maintain original Debit Form 2424 or Form 3809 in the case file maintained by the Receipt Loss Coordinator.

    6. File and distribute Credit documents and Form 813 accordingly.

Repayment or Relief Granted of Embezzlement or Loss
(RRACS Window 309)

  1. Receive payment posting document (either Form 3244, Form 2424, Form 3809, or IPAC from Beckley Finance Center via RRACS) with repayment amount of loss or the amount of relief granted.

  2. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, original Doc-Id, money amount and date of payment or relief.

  3. Journalize to the RRACS system.

    Note:

    The original Doc-Id used to open the case originally must be used when posting a partial repayment or when relief is granted.

    1. Using the RRACS 309 Window, which can be found under the Loss Main Menu under Recover, Embezzlement and Theft, input each Doc-Id and loss amount separately.

    2. The journalization will be a Debit to either Account 4120 (BMF), 4220 (IMF) or Account 6900 (Adjustment or Correction of Revenue Receipts) and a Credit to Account 7610.

    3. The journal number must be stamped or written on all supporting documentation.

    4. File and distribute documents accordingly.

New Unexplained Case Processing
(RRACS Window 307)

  1. Receive Form 2424 or Form 3809 for processing.

  2. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, Doc-Id, DLN, money amount, date of original deposit and the accountable officer at the time of the loss.

  3. Journalize Form 2424 or Form 3809 to the RRACS system to open the case.

    1. Using the RRACS 307 Window, which can be found under the Loss Main Menu under Loss, Unexplained Loss, input Doc-Id and amount separately.

    2. Use the date of original deposit as the action date when opening the case on RRACS. Use the original deposit ticket number as the Doc-Id on RRACS.

    3. The journalization will be a Debit to Account 7620 and a Credit to Account 4120 (BMF), 4220 (IMF).

    4. The journal number must be stamped or written on all supporting documentation.

    5. Maintain original Debit Form 2424 or Form 3809 in the case file maintained by the Receipt Loss Coordinator.

    6. File and distribute Credit documents and Form 813.

Repayment or Relief Granted of Unexplained Loss
(RRACS Window 310 )

  1. Receive payment posting document with repayment amount of unexplained loss or the amount of relief granted.

  2. Prepare Form 8166 for journalization (optional). Form 8166 should include, at a minimum, original Doc-Id, money amount and date of payment or relief.

  3. Journalize to the RRACS system.

    Note:

    The original Doc-Id used to open the case originally must be used when posting a partial repayment or when relief is granted.

    1. Using the RRACS 310 Window, which can be found under the Loss Main Menu under Recover, Unexplained Loss, input each Doc-Id and loss amount separately.

    2. The journalization will be a Debit to either Account 4120 (BMF), 4220 (IMF) or Account 6900 (Adjustment or Correction of Revenue Receipts) and a Credit to Account 7620.

    3. The journal number must be stamped or written on all supporting documentation.

    4. File and distribute documents accordingly.

New Deposit Discrepancy Case Processing
(RRACS Window 308)

  1. Receive Form 2424 or Form 3809 for processing.

  2. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, Doc-Id (Debit Voucher Number), DLN, and money amount.

  3. Journalize Form 2424 or Form 3809 to the RRACS system to open the case.

    1. Using the RRACS 308 Window, which can be found under the Loss Main Menu under Loss, Deposit Discrepancy, input Doc-Id and amount separately.

    2. The journalization will be a Debit to Account 7650 or Account 7649 (if ECP deposit discrepancy) and a Credit to Account 4120 (BMF), 4220 (IMF), 1710 (Dishonored Checks) or 1720 (Dishonored Check, Adjustment).

    3. The journal number must be stamped or written on all supporting documentation.

    4. Maintain original Debit Form 2424 or Form 3809 in the case file maintained by the Receipt Loss Coordinator.

    5. File and distribute Credit documents and Form 813.

Repayment, Approval to Write-Off or Relief Granted of Deposit Discrepancy Case
(RRACS Window 311)

  1. Receive payment posting document with repayment amount of unexplained loss, the amount of relief granted or the amount approved by the Field Director, Submission Processing for write-off to the 6901.

  2. Prepare Form 8166 for journalization. Form 8166 should include, at a minimum, original Doc-Id, money amount and date of payment or relief.

  3. Journalize to the RRACS system.

    Note:

    The original Doc-Id used to open the case must be used when posting a partial repayment or when relief is granted.

    1. Using the RRACS 311 Window, which can be found under the Loss Main Menu under Recover, Deposit Discrepancy, input each Doc-Id and loss amount separately.

    2. The journalization will be a Debit to either Account 4120 (BMF), 4220 (IMF), 1710 (Dishonored Check), 1720 (Dishonored Check Adjustment ) Account 6900 (Adjustment or Correction of Revenue Receipts), or Account 6901 (ECP Adjustment of Revenue) and a Credit to Account 7650 (Deposit Discrepancy) or Account 7649 (ECP Deposit Discrepancies).

    3. The journal number must be stamped or written on all supporting documentation.

    4. File and distribute documents and Form 813.

National Security Checks Processing Procedures
(Kansas City Only)
(RRACS Window 210)

  1. National Security checks are sent in a sealed envelope from the Department of Defense to the Kansas City Director, Compliance Services, along with a memo listing each check. The sealed envelope along with the memo will be picked up from the Director, Compliance Services Director by the Submission Processing (SP) Planning and Analysis (P&A) analyst.

  2. The SP P&A Analyst will prepare a Form 3244 for each check received. On each Form 3244 it will be indicated in the remarks field that these payments are for 'Account 6400'.

  3. The SP P&A Analyst will hand carry the checks and Form 3244s to Receipt and Control, Deposit Function.

  4. Deposit Function will prepare SF215-A via OTCnet and Form 2221 with appropriation symbol 20X3220.

  5. Deposit will notify the SP P&A analyst who will hand carry the SF215-A and Form 2221 from Receipt and Control to Accounting for journalization.

  6. RACS will journal using a 210 Window, found under Deposit, as a debit to Account 2320 (Miscellaneous Receipts) and credit to Account 6400 (Miscellaneous Revenue Collections). Make sure the Trace ID is also input to RRACS.

  7. Transcribe or stamp journal number on all documents.

  8. SP P&A Analyst will make copies of the checks, journalization, deposit ticket and Form 2221, stamp them "Copy" along with the original memo listing the checks and hand carry back to the Director, Compliance Services .

  9. Accounting will file original Form 3244s, SF 2221 with copies of the checks in Account 6400.

    Note:

    These are security sensitive checks and must be hand carried to each area. In the event they need to be locked up, they must be locked in a secured cabinet.

Over the Counter Network (OTCnet)

  1. OTCnet is a secure web-based application. OTCnet was released to IRS on March 19, 2011. The OTCnet system integrated the functionality of Paper Check Conversion (PCC) and Treasury General Account Deposit Network (TGAnet).

    1. OTCnet will upgrade paper check conversion processing, so that it can be done end to end over the internet without the need for special software.

  2. Designated employees in the Accounting Operation RACS function will be Agency Viewers. As an Agency Viewer, you will be able to retrieve and print the confirmed deposits and adjustments, view and search prior deposits and adjustments, and view business reports. A viewer may not be assigned any other roles in OTCnet.

  3. All OTCnet users must complete the web based training provided on the BFS OTCnet web site prior to being given access to OTCnet.

    1. A web based site to provide guidance and training can be found at the BFS OTCnet website at: http://www.fms.treas.gov/otcnet/index.html.

    2. The OTCnet website will be the source of your training. The OTCnet Agency Viewer Job Aid should be used for instructions on accessing OTCnet, searching adjustments and viewing reports.

    3. For questions or assistance using OTCnet, you may contact your Local Security Administrator or the Treasury OTC Support Center at:
      Phone: (866) 945–7920 (Toll Free).
      E-mail: http://www.fms.otcchannel@citi.com.

    Note:

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

Accessing OTCnet

  1. If you have been identified as a OTCnet user, your Local Security Administrator (LSA) will need to create your profile for OTCnet. After completion of the online training course, each user must complete the OTCnet User Authorization Form.

    • The OTCnet User Authorization Form captures information needed to set up an employee as an agency user in OTCnet.

      Note:

      Original signature required on form.

    • The OTCnet User Authorization and Rules of Behavior forms can be obtained from your Campus LSA.

    • Your manager will submit your OTCnet User Authorization Form to your LSA to be granted access to OTCnet.

  2. Once you have been assigned OTCnet permission, you will receive E-mails containing your user ID, temporary password and permission assigned in OTCnet. After you receive a user ID and temporary password, you must login to the TWAI to change your temporary password and provide answers to your secondary authentication questions.

  3. All training material and instructions for accessing OTCnet can be found at http://www.fms.treas.gov/otcnet/index.html including specific guidance on the following procedures:

    • All User Procedures

    • Initial Sign In

    • Password Maintenance

    • Password Rules

    • Agency Viewer Procedures

    • View Reports

Receivables

  1. The following are general ledger receivable accounts.

Account Series 1000 Accounts Receivable

  1. This account series is generally taxpayer accounts which contain an outstanding balance of monies due and payable to the U.S. Government. The majority of the accounts receivable are the results of tax assessments against the various tax classes. However, dishonored checks, account transfers, and other receivables are also included in this series.

Account 1100 BMF, Accounts Receivable
(Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent the total taxes assessed and unpaid on the BMF. Included in the total of this account are taxpayer accounts in notice status, installment status, TDA status, and those taxpayer accounts on which collection has been temporarily suspended by a hold code.

  2. External subsidiary records are those taxpayer accounts on MF, in debit-balance status.

  3. Data input will be updated by electronic transmission.

Account 1300 Non-Tax Receivables
(Real Account, DR Normal Balance)

  1. The net total of this receivable account will represent non-tax monies posted on MF that have an outstanding module balance.

  2. Data input will be updated by electronic transmission.

Account 1550 Injured Spouse Claims Allowed Receivable
(Real Account, DR Normal Balance)

  1. This receivable account records and tracks receivables due IRS from BFS for injured spouse claims.

  2. Injured spouse claims are the result of the Treasury Offset Program (TOP). A refund offset of an outstanding child support or other federal agency debt that is made after 1-11-1999 is referred to as a TOP. See IRM 21.4.6, Refund Offset.

DMF 1550 Injured Spouse Claims Reconciliation Monthly Procedures
  1. Background information: The DMF 1550 account is used to identify each Individual Master File (IMF) Service Center Recap (460-43-22 report) for Transaction Code 766 (IRS TOP Offset Reversal) and 767 (Rejected TOP Offset Reversal) that post through the batch process daily by cycles in Redesign Revenue Accounting Control System (RRACS). Additionally, Intra-Governmental Payment and Collection (IPAC) payments and collections are automatically journalized into the 1550 account through RRACS. The journals listed below are used for research purposes.

    1. IMF Recap report for TC766 is a debit and TC767 is a credit (162 batch posting journal)

    2. IPAC payments or collections (760 journal)

    3. Manual process (400 journal)

      Note:

      BMF recap (108 batch posting journal) should not post in the1550 account. When there are erroneous BMF batch posting in the 1550 account, send an email to &CFO CA1550 group for research.

  2. The RACS DBA will receive the Monthly Account balance sheet by the 13th workday of the month from Accounts Management (AM) and must be reconciled within five work days after receipt.

  3. Prepare the Monthly 1550 Reconciliation spreadsheet using the RACS 004 Monthly General Ledger trial balance and the AM Monthly Account balance sheet.

    1. Column A - service center name

    2. Column C - use account 1550 net amount from RACS 004 Monthly General Ledger trial balance report.

    3. Column E - use the ending balance amounts from the AM Monthly account balance sheet.

    4. Column G - is the difference between column C and column E. If zero, no need to input column I or K.

    5. Column I - when there is a discrepancy from column G, research 1550 account future general ledger for TC 766/767 not journalized, for example AM Monthly Account balance sheet report will show the cycle through 20YYCC (i.e. 201704) when TC 766 and 767 are journalized through cycle 201703. Add the balance for cycle 201704 amounts as TC 766/767 not journalized as future cycle and input that money amount on worksheet. Any manual journal money amount will also be input on worksheet. If AM balance sheet did not capture a cycle that posted to RRACS, input amount on column K. The report is balanced when column G and I or G and K are equal.

      Note:

      If unable to balance, email &CFO CAS1550 group and on the subject line indicate 1550 account OOB & month.

    6. Column K - use current month general ledger posted but was not included on AM balance sheet.

    7. Column L - enter Note as “Cycle 20YYCC not journalized” if there is data on in column I.

    8. Column N - if there is data on column K input “Cycle 20YYCC not captured”

  4. The reconciliation process must be completed and balanced within five work days after receipt. Once reconciled and balanced, sign and date worksheet and uploaded a copy to Accounting Share Point at:https://organization.ds.irsnet.gov/sites/WICASSpSph/ATP/Scad/Rracs/Misc%20Documents/Forms/AllItems.aspx.

Account 1810 BMF Account Receivable - Inactive
(Real Account, DR Normal Balance)

  1. This receivable account will be used to record BMF taxes receivable items determined to be uncollectible, or on which collection activity has been suspended due to taxpayer's inability to pay. The account also includes items which have been administratively determined too small to warrant collection activity.

  2. Items in this account may subsequently be re-opened for collection activity if taxpayer's financial status changes. Refunds for subsequent periods may be offset automatically to satisfy outstanding items in this account.

  3. External subsidiary records are those items on the BMF marked with the uncollectible status code.

  4. Account 1810 will be updated by electronic transmission.

Account 1820 IMF Accounts Receivable - Inactive
(Real Account, DR Normal Balance)

  1. This receivable account will be used to record IMF taxes receivable items determined to be uncollectible, or on which collection activity has been suspended due to taxpayer's inability to pay. This account also includes those items on which it has been administratively determined the amount is not large enough to make collection effort cost effective.

  2. Items in this account may be subsequently re-opened for collection activity, if taxpayer's financial position changes. Refunds for subsequent tax years may be offset automatically to satisfy outstanding items in this account.

  3. External subsidiary records are those items on the IMF marked with the uncollectible status code.

  4. Account 1820 will be updated by electronic transmission.

Reciprocal Accounting Control Record (RACR)

  1. The automated Reciprocal Accounting Control Report (RACR) is the cumulative accounting record maintained by ECC for each Submission Processing Campus.

    1. The RACR reflects the monetary value of data input and generated to each master file (IMF and BMF).

    2. The RACR is prepared daily by ECC for each Submission Processing Campus for IMF. The RACR is also prepared weekly by ECC for each SPC for BMF.

    3. The RACR should be prepared as soon as all related processing is completed (i.e., unpostables, accounts register, AAV summaries, resequence, cancelled/undeliverable refunds, etc.).

    4. At the close of the cycle (may be other than Wednesday, if a holiday is involved), there will be one Recap and RACR, which will be tagged with a "H" , indicating the last daily which includes the weekly transactions.

  2. The monthly closing of the RACR is made at the end of the last posting cycle for that month. RACRs are programmed to print "Last entry for the Month of _______" message on the last cycle of the month.

    1. This is the last weekly posting cycle of the month for BMF processing.

    2. For IMF, this would be the final daily RACR, which will also contain the activity for the weekly transactions.

  3. The monthly RACR is used by the Submission Processing Campuses to reconcile their general ledger accounts.

  4. Items posted to the RACR are the same items that have been journalized to the Submission Processing Campus general ledger accounts.

  5. ECC has developed ADP programs which assist in preparation of the RACR. Refer to local Statistical Analysis System (SAS) procedures in using these programs.

  6. A copy of each daily and weekly RACR is available to the SPCs via Control D. PVS will no longer forward copies of these reports to the SPCs.

  7. Copies of the RACR are filed separately for each Submission Processing Campus in chronological sequence along with the associated AAV's for those cycles.

    Note:

    CADE stopped processing transaction data as of the end of Cycle 201124. All individual taxpayer accounts have been returned to the Individual Master File (IMF) and in January 2012, IMF will process all IMF transactions under the CADE 2 processing timeline with daily processing. All general ledger activity is included under the IMF general ledger account.

Master File Reconciliation

  1. It is necessary to ensure that the total of the monetary balance of the appropriate general ledger accounts in each site can be reconciled to the balance of each MF account. This is accomplished by using Form 5199A, RACR, which is maintained at ECC for each site and transmitted to the sites at the end of each month. The appropriate general ledger accounts are reconciled to the RACR by each site.

  2. Each Form 5199A will be closed out near the end of each month, at the end of the final posting cycle. As a general rule, if the last day of the month falls on Wednesday through Saturday, that week's posting cycle will be included on the RACR for that month. All entries for one posting cycle should be included in the same month's RACR. ECC's RACR will be forwarded to each site within five workdays after the Reconciliation of MF Balance has been completed for the last cycle included in the RACR.

  3. Complete Form 6168, Current Month Report. Reconciling items should be shown in a manner to facilitate the verification by ECC. Debits and credits should be in the proper columns. Use brackets to identify reversals. The ECC RACR items should be identified by page and line number, or by a brief description similar to that shown on Form 5199A. The general ledger items should be listed by individual file and identified by the cycle, site file, and work group number. Miscellaneous items should be identified by a brief description, and date or cycle number. Questionable or problem entries will be identified by an asterisk (*) in the action column. Separate lines will be included on the Form 6168, for aged reconciled and unreconciled amounts.

  4. The sites will post all entries to the appropriate general ledger accounts promptly, including entries which reflect the transfer of the accountability between the site and ECC. To compute the general ledger balance, use the general ledger accounts listed on the monthly trial balance for the type of RACR being balanced. Run the net amount figure. Verify last month's RACR closing balance with this month's opening balance on Form 5199A when received from ECC.

    Note:

    Due to a programming change in March 2016 for accounts 1300 and 4521, you will now need to use the running total of the 162 journals dated March 4, 2016 and forward.

  5. On the general ledger account listing for each MF, annotate each ledger entry with the cycle of the TEP, new unpostables, corrected and reclassified unpostables, schedule number of the 1098, 1185, and 145, Z listings and cycle of refunds. Obtain a GOALS II listing for your cycle information. SC Recap states the cycle so no notation is needed. The 051 RRACS Report and the 004 RRACS Report will be used weekly from RRACS. Check the pending reconciliation items on last month's Form 6168 with the ECC RACR for:

    1. Entries posted to last month's RACR on this month's general ledger.

    2. Entries posted to last month's general ledger on this month's RACR.

    To prevent any 'aged' items, investigate immediately any new items appearing on the previous month's Form 6168 and not checked off for the new month.

  6. After checking off all figures on the prior month reconciliation sheet Form 6168, continue comparing the current month's RACR and general ledger as follows:

    1. Accountability Acceptance (AA) vouchers from ECC - Using the cycle and day total from each MF AA voucher, check off general ledger debits and credits for the same cycle and day. If there is more than one general ledger entry per day, add these entries together for the total of that day. The corrected and reclassified unpostables are journalized as separate items, but are included on the AA vouchers in the total for that day. The total debits and credits are shown separately on the voucher for the cycle and must all be checked off to a general ledger entry. The site totals on the bottom of the AA vouchers should agree with the AA voucher line of Form 5199A by cycle. Journal numbers will be 100 for unpostables, 102 for GMF TEP and 4XX for window entries.

    2. SF 1098, 1185, 145, and Z listing from GOALS - The amount on the RACR Form 1098 line will equal the total of the amounts for the applicable schedule numbers on the general ledger. TRACS journal numbers 4XX, Form 1098, Form 1185, Form 145 journal numbers 5XX.

    3. SCRS unpostables -The debit and credit net figure on the RACR will equal the separate amount on the general ledger.

    4. Refunds generated - Shown as a separate amount cycle on the general ledger. If your site processes IMF EFT use the net of the EFT refund line and CID TC 841 line from the next cycle extracted from the RACR. Journal number 512 BMF and 513 IMF.

    5. The RACR net total of the A/R less refunds, plus accounts to and from other sites, plus credits to and from other sites will equal the net total of the site recap amounts on the general ledgers for the same cycle. For IMF on the general ledger use IMF recap entries as described, plus one BMF item for the previous recap cycle. Journal numbers for SC recaps will be 108 BMF, 107 Semi-Annual IMF and 162 CADE 2.

    6. M-4496 Data Adjustment Voucher - Journalized as a separate amount on the general ledger for each adjustment voucher, journal numbers are 4XX.

    7. Any item not checked off from the RACR, list on the top half of Form 6168 'Entries posted to RACR not posted to the General Ledger'.

    8. Any item not checked off from the general ledger, list on the bottom half of Form 6168 under 'Entries posted to General Ledger not posted to the RACR'.

    9. The net of the above items will be entered on the net reconciling amount line of Form 6168. The general ledger balance computed in (4), plus or minus the net reconciling amounts, should equal the RACR balance closing entry line.

    10. Journal numbers will be 100 for unpostables, 102 for GMF TEP, 107 IMF SC recap, 108 BMF SC recap, and 162 CADE 2 recap all are automated tape. Journals input manually are 512 and 513, 506 Cycle Refunds, 534 and 535 are 1098, 1185, and 145 Schedules, 4XX other manual journals.

      Note:

      Beginning of the year - Due to the dead cycles at the beginning of the year use cycle 1 - 3 for the BMF RACR, cycle 1 - 4 for your first IMF RACR, then weekly afterwards.

  7. The IMF RACR, Form 6168, will be balanced weekly and monthly. The BMF RACR should be balanced on a weekly basis to ensure that any out-of-balance situations are reconciled before EOM processing.

  8. Upon receipt of Form 6168, with ECC RACR from the sites, ECC-MTB will verify the correctness of the debit and credit amounts for each reconciling item shown. If any questionable or unidentifiable item is shown, the appropriate site personnel will be contacted for an explanation, and both copies of the Form 6168 report will be notated.

  9. ECC-MTB will return any RACRs back to the sites that do not meet the balancing and reporting procedures.

  10. E-mail the IMF Form 6168 weekly. E-mail the monthly IMF and BMF Forms 6168 no later than the 15th of the month. Attach a monthly copy of the IMF and BMF monthly and include the General Ledger Account page to each Form 3997.

Reconciliation of General Ledger Accounts, Form 3997

  1. The Form 3997 is a manual report which is prepared by each campus monthly to report the balancing of the subsidiary accounts to the general ledger accounts. This report must not be altered. All accounts must remain on this form and filled in even if it there are zero balances. All open fields on the report must be filled in, including the applicable accounts under the expired statute count column. The expired statute count should be taken from the case files for each general ledger account.

    Note:

    The reporting period on the Form 3997 should be the last day of the reporting month. For example, January month end it should be 01/31/2016, for February month end it should be 02/29/16 and September it should be 09/30/2016.

    Note:

    Case files deemed "uncollectible" or "below tolerance" should not be included in this count.

    This report will be used to alert the campus and Submission Processing Headquarters of any imbalances between the accounts, and any processing problems within the site.

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

    Note:

    The Status Report requirement for the Form 3997 is used to provide detailed background information on aged and unreconciled items for the SP HQ Analysts.

    Note:

    All comprehensive status reports prepared by teams other than RACS must be reviewed and initialed by the RACS manager, prior to submitting to HQ.

    1. Campus, report month, account number and total amount at the top of the report.

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

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

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

    5. Estimated date the account will be reconciled.

    6. Any existing problems that may prevent reconciliation.

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

  3. Additional information:

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

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

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

    • Use information that identifies the items, such as, IPAC-id, Doc-Id, cycle, tape journal, etc.

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

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

  6. Definition of Terms on Form 3997:

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

    2. Aged Reconciled - If the same item previously listed as reconciled has not been completed by the next month end, then it becomes an aged reconciled item.

      Note:

      Any aged reconciled item appearing on the Form 3997 for the first time will result in a yellow scorecard.

    3. Unreconciled Item - If there is an out-of-balance condition that cannot be identified or the way to correct it is undetermined (an adjustment to RRACS/subsidiary), then it will be reported as an unreconciled item.

      Note:

      If this item is reconciled by the following month end, but actions required were not completed by end of month, then it must be reported under aged reconciled, which will result in a yellow scorecard.

    4. Reconciling items reported on Form 3997 must be cleared by month end to prevent reporting any items as “Aged Reconciled” the following month. See IRM 3.17.15.6.13.1, Accounting Reports Analyst-Responsibilities for review of cleared reconciled items.

  7. Form 3997 must be digitally signed by the Field Director, the Accounting Operation Manager, the Manager of the team preparing the form, and the Accounting Reports Analyst.

  8. Form 3997 will be supported by balancing sheets maintained in the campuses. The following documentation must be attached to Form 3997 when uploaded to the Submission Processing SharePoint at: hhtps://organization.drs.net.gov/sites/WICASSpSph/ATP/Scad/Rracs/Form3997 SP Campus Documents/Forms/Allitems.aspx. :

    1. Copies of the BMF and IMF Form 6168

    2. Comprehensive status reports as described above

    3. Summary page from the spreadsheet used to balance the subsidiary accounts which includes the monthly totals and volume, expired statute count (if applicable).

    4. Balance sheets are not required for a zero accounts as long as it is always a zero.

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

  10. No later than the 25th of the following month, a copy of the digitally signed Form 3997, Form 6168s, the comprehensive status reports and the summary page from the spreadsheet used to balance the subsidiary accounts which includes the monthly totals and volume, should be uploaded to the Submission Processing SharePoint at: hhtps://organization.drs.net.gov/sites/WICASSpSph/ATP/Scad/Rracs/Form3997 SP Campus Documents/Forms/Allitems.aspx. The uploaded copies must reflect the same figures and account information as the signed copy maintained in the GAO file.After the signed Form 3997 and all supporting documentation has been uploaded, the site should email &W&I SP:RRACS confirmation of their Form 3997 submission. If problems occur, and it is felt this time requirement cannot be met, contact SP HQ RRACS for further instructions. It should be noted that an out-of-balance condition is not justification for this report to be submitted late. The Form 3997 is reported on the SP/CFO and Treasury Scorecard.

  11. Additional reminders for Form 3997:

    1. The Quarterly Form 3997 is to be completed and digitally signed for the months of December (1st quarter), March (2nd quarter), June (3rd quarter), and September (4th quarter) and emailed along with the monthly Form 3997 to SP HQ.

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

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

    4. A copy of the monthly 3997 Scorecard should be provided by the Accounting Operations Chief and be retained in the 3997 GAO file.

    5. Maintain a copy of Delegation of Authority for signers of the Form 3997 (Operations and Director Level)

    6. Your completed Form 6168 must display the General Ledger Account page. Do not use the hide accounts feature button.

      Note:

      Employees who balance accounts and prepare the monthly Form 3997 should be rotated periodically to mitigate the risk of fraud that could occur to the financial records.

Form 3997 Remediation Plan

  1. The Remediation Plan is a memorandum for the Chief, Accounting and Tax Payment Branch, from the Accounting Operation Manager, for any scorecard criteria with a "yellow" or "red" score on the Form 3997.

  2. The Remediation Plan outlines not only the error, but the measurable steps the campus will take to prevent imbalances in the future. It must contain the following information, as appropriate:

    1. Detailed explanation of the imbalance(s)

    2. Attempts made and/or methods used to correct imbalance(s)

    3. Estimated/Actual date the account will be corrected

    4. Explanation of late submission of report

    5. Detailed explanation of incomplete/inaccurate data

    6. Explanation of missing signature

    7. Future preventative actions

    Note:

    The Remediation Plan memorandum must be signed by the Campus Field Director or designee.

  3. The signed Remediation Plan should be attached to the F3997 in the GAO file.

Refund Reversals

  1. The following documents can be received for refund reversals:

    1. SF 1098

    2. SF 1184

    3. SF 1185 Schedule of Unavailable Check Cancellation Credits

    4. SF 1081

  2. SF 1081 will also be received from Regional Resources Management division for relief of losses. A reclassification is necessary to increase receipts (Account 21XX) and decrease or credit refund appropriations (Account 2410).

Account 4970 Unapplied Refund Reversal
(Real Account, DR/CR Normal balance)

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

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

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

  4. This account is used to control Limited Pay Cancellations received via IPACD or IPACR until the tapes are processed at ECC or manual documents are prepared. Individual records will be maintained for each IPAC document. Individual records that result as Unpostable will be journaled back into account. See IRM 3.17.79.11.3.

    Note:

    Individual records that resulted as Unpostable should be resolved depending on the reason it unposted. Every effort should be made to resolve Unpostable conditions within 4 weeks of receipt.

  5. Items placed in this account will be subject to expedite research to determine proper application and will be transferred to the proper taxpayer’s account upon identification. See IRM 3.17.63, Redesigned Revenue Accounting Control System.

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

  7. The external subsidiary file documents are Form 3809 associated with SF 1098 and IPAC TRACS.

Standard Form 1098 Schedule of Cancelled or Undelivered Checks

  1. SF 1098 may have an input document, Form 3245, or the form may indicate a tape was forwarded to ECC, and journalization will be made to IMF or BMF. If Form 3245 is received, Form 813 (2-part) should be associated.

  2. Entry will be made from SF 1098 for appropriation amount, and from Form 813 (2-part) or tape for SCCF suspense account.

  3. If SF 1098 indicates tape was posted directly to MF, entries will be made from SF 1098 only. A cycle number is required and it must agree with the cycle number on the RACR received from ECC.

Standard Form 1184

  1. SF 1184 will be received with input documents, Form 3245, and Form 813 (2-part). Form 813, Part 1, and Form 3245 will be forwarded to Batching for processing. Part 2 will balance with SF 1184 amount. Input will be made from SF 1184 and duplicate Form 813.

Miscellaneous Refund Check Cancellation

  1. Deposit fund refund checks which are canceled will be posted from the SF 1098 or SF 1184.

  2. General Fund, Off-Shore Oil Fund, and Anti-Drug Special Fund refund checks which are canceled will be posted from the SF 1098 or SF 1184 and reclassified.

Account 6565 Refund Cancellation Credits Allowed
(Nominal Account, DR Normal Balance)
  1. The monies posted to this account are indicative of the processing which allows a refund cancellation credit (TC 841) to post to a taxpayer’s account when a refund was issued, but never negotiated by the taxpayer.

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

  3. The case file accompanying Form 3809 must contain adequate documentation to clearly demonstrate that one of the specified criteria for use of Account 6565 has been met. This includes records of all contacts made with BFS, both written and oral that have been made in an effort to resolve the case. It must also include an account transcript or TXMOD print showing all control base activity and history items. These case files will be maintained by category 1, 2, 3 or 4. See IRM 21.4, Refund Inquiries, for explanations of these codes. Refunds issued based on category 3 require the Operation Manager’s signature.

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

Account 6910 Correction of Misc. Revenue
(Nominal Account, DR Normal Balance)
  1. This account represents the total amount of reimbursement for miscellaneous revenue.

  2. This account also represents the total amount of reimbursement to lockbox banks for losses that were not their responsibility.

  3. The external subsidiary is the case file supporting this transaction.

Reporting of SF 1081

  1. As part of Treasury's Central Accounting Reporting System (CARS), formerly GWA, SF 1081 are reported as receipts and disbursements in CARS.

Remittances

  1. Remittances received by the field office or foreign operation district (FOD) for application to taxpayer accounts are deposited to the credit of the Campus Director via OTCnet. Remittances are also received at the site. The related returns or documents are controlled by:

    1. SF 215-A

    2. Form 813 (2-part)

    3. Form 813A

    4. Remittance Processing System Transaction Registers

  2. Accounting receives a hard copy package from the field office including IDRS prints from response page to CC PYBAL (See Exhibit 21.3.4-46), and CC TXCTL (See Exhibit 21.3.4-47), Statement of Loss, Shortage or Overage, and Form 2424 Account Adjustment Voucher if applicable.

    1. For daily balancing of cash deposits in Taxpayer Assistance Centers (TAC), compare the total of dollars deposited by the TAC reflected on the OTCnet System to the dollar total credited to taxpayer accounts on the AORR also known as the EOD 2421 Report for the same TAC. If the TAC is out of balance, then immediately contact the TAC manager, for a digitally signed Form 2424, Account Adjustment Voucher. The TAC manager ensures the correction is provided within 24 hours via secure email. If the signed Form 2424, Account Adjustment Voucher, requires processing by another area, then Accounting will complete the required posting voucher to ensure the correction is done. Copy the Area Office Analyst for remittances for the servicing Field Assistance (FA) Area.

    2. TACs with couriers each have a unique 3 digit number that display on the AORR. If there is an out of balance, identify the TAC by this 3 digit number.

  3. The campus prepares separate deposit tickets for its own deposits. These documents are used as the basis for journalization and subsequent posting to the general ledger controls. Remittances received by area offices and FODs are processed and deposited to the credit of the Campus Director, as prescribed. Dishonored checks on above remittances are received at the site with SF 5515. For detailed information, see IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF).

  4. All DT/DVs must be date stamped once they are received in Accounting.

Taxpayer Assistance Center (TAC) Courier Deposits

  1. Taxpayer Assistance Centers (TACs) may have approved couriers pick up and deposit cash payments collected over the counter into OTCnet. These courier deposits are applied to tax accounts through IDRS and deposited to the credit of the accountable Campus Director using OTCnet. HQ Field Assistance (CARE organization) manages TAC couriers and the courier deposit process in partnership with the Bureau of Fiscal Service (BFS).

  2. The related returns or documents for TAC courier deposits are:

    1. SF 215-A Deposit Ticket (via OTCnet)

    2. EOD 1640

    3. Remittance Processing System Transaction Registers (EOD 2421, Area Office Remittance Register)

    4. Form 809 Receipt for Payment of Taxes

    Note:

    Effective approximately October 1, 2013, the Taxpayer Assistance Centers (TACs) began using a Smart Safe to collect cash payments of whole dollars and coins. These deposits are sent to either the Austin, Fresno or Kansas City's RACS team for journalization. Since the safes will not all be installed at the same time, the potential exists for more than one Area Office Remittance Deposit to be received on any given day until all the TAC sites have received and installed the Smart Safe. These deposits will be made through OTCnet and "Smart Safe" will be identified in Box 6 of the OTCnet Deposit ticket. There is no change to the normal processing procedures for these types of deposits.

Daily Balancing of TAC Cash Deposits
  1. Each TAC must reconcile and balance cash collections daily to the penny. Accounting will print the TAC office cash deposit tickets from OTCnet.

  2. Effective October 1, 2014, all TAC's will submit the accounting package via the Accounting and Tax Payment SharePoint at https://organization.ds.irsnet.gov/sites/SPATPBranch/FACashAcctgPackRepository/default.aspx to Campus Accounting for review, balancing and journaling. These documents will be retained and available for audit for seven years. Campus Accounting users gain access to the site with approval of their Department Manager. Department Manager may send an approved request for access with the employee name and SEID to HQ Accounting Services at 855-225-1552.

  3. Using the information on the OTCnet deposit ticket, retrieve the cash accounting package documents from the SharePoint site for the date of deposit. SharePoint categories are:

    • Submission Processing Center

    • Field Assistance Area

    • TAC Name (alphabetically by city)

    • Fiscal Year of Deposit

    • Month of Deposit

    • Date of Deposit

  4. There will be two files listed for each date of deposit.

    • Form 809 receipts for the deposit date (The Form 809 receipts are for Receipt and Control daily use. Accounting can access these on an as needed basis.) The file will be named by the OTCnet Deposit Ticket date (mm.dd.yyyy) 809. Example : 10.29.2017 809

    • PYBAL sheet, Form 2424 (if applicable) and Memorandum of explanation regarding any out of balance condition (if applicable). The file will be named by the OTCnet Deposit Ticket date (mm.dd.yyyy) PYBAL. Example: 10.29.2014 PYBAL

      Note:

      If Accounting contacts a TAC for a new or revised Form 2424 Account Adjustment Voucher, then the Form 2424 digitally signed by the TAC manager will also be uploaded to the ATP SharePoint by the TAC. This file for the subsequent Form 2424 will be named by the OTCnet Deposit Ticket date (mm.dd.yyyy) F2424. Example: 10.24.201-74 F2424. The TAC will Inform Accounting when the Form 2424 has been posted to the SharePoint.

    Note:

    If the Accounting SharePoint experiences an outage, generally the TAC will upload the documents when it becomes available. If it is two days before the end of month or sooner, the TAC will email the scanned documents to the RACS email box at the servicing site. The subject line of the email will include "SharePoint down, TAC Location, and OTCnet Deposit Date."

  5. Campus Accounting must review each cash deposit daily to confirm that the TAC is in balance before journaling.

    1. If the exact dollar amount of the OTCnet deposit ticket matches the exact dollar amount of payments credited to tax accounts on the EOD 2421 to the penny, then the TAC is in balance. If the breakdown of the tax class totals result in an out of balance condition from the EOD1640 and the deposit ticket, RACS should reclass the money.

    2. If the exact dollar amount of the OTCnet deposit ticket does not match the exact dollar amount of payments credited to tax accounts on the EOD 2421 to the penny, then the TAC is out of balance. The accounting technician will take the following steps:

    Step Action
    1 Compare the exact total of dollars deposited to the OTCnet System for the TAC to the exact total of dollars credited to tax accounts on EOD 2421 , for that TAC. Payments will be posted by unique TAC ID number.
    2 If the exact dollar amount of the OTCnet deposit ticket matches the exact dollar amount of payments credited to tax accounts on the EOD 2421 to the penny, then the TAC is in balance. If the TAC is in balance, then journal the deposit. If the TAC is not in balance, then see step 3.
    3 Determine if there is an overage or a shortage by the money amount of the deposit. A shortage occurs if the dollar amount of the deposit is less than the amount credited to the tax accounts on the EOD 2421 report.
    4 Notify the TAC manager via secure email. In the subject of the email state the Deposit Ticket number Out of Balance, mm/dd/yyyy, requesting F2424 for the out of balance with response due within 24 hours. Copy the Area Office Analyst for remittances for the servicing Field Assistance (FA) Area.
    • FA 1 – Linda.M.Henry@irs.gov

    • FA 2 – Tammy.Coleman-Jones@irs.gov

    • FA 3 – Deborah.L.Meador@irs.gov

    • FA 4 –Lori.Andre@irs.gov

    If sending an out of balance issue to a TAC, then also copy the HQ Field Assistance analysts Marlene Sosa and Virginia A. Miller and Edna Banks. Record all out of balance condition on the SP Deposit Monitoring Spreadsheet
    5 If the out of balance condition is not resolved by the following business day, then follow up with the Area Office Analyst for remittances.
    6 Record all responses to out of balance conditions on the SP Deposit Monitoring Spreadsheet. If there are any unresolved out of balance conditions, unconfirmed bank deposits, or any unresolved issue by the 4th Wednesday of the month, then provide a copy of the SP Deposit Monitoring Spreadsheet or email with the unresolved issue to the HQ Submission Processing analyst for Field Office Payment Processing for assistance to ensure resolution by the end of the month.
    7 Refer to IRM 3.0.167 Losses and Shortages for reporting requirements if cash losses, not just balancing issues are identified. If reporting a loss or shortage, inform the Campus Remittance Security Coordinator (RSC). A list of remittance security coordinators is at the following link: http://win.web.irs.gov/SP/Security_Info_&_Internal_Control/Remittance_Security_Coordinators.htm
Rejected TAC Cash Deposits
  1. The following procedures list different scenarios that are to be followed if a TAC deposit ticket is journaled and then rejected by the bank.

  2. If a new deposit ticket is prepared and submitted for the same amount in the same month:

    1. Print new deposit ticket and rejected deposit ticket from OTCnet.

    2. Modify both Treasury Number and date.

    3. Attach the original deposit ticket copy and rejected copy behind the new deposit ticket.

    4. Stamp the original journal number and modification journal number (Window 902) on the new deposit ticket.

  3. If a new deposit ticket is prepared and submitted for the same amount for a different month:

    1. Print new deposit ticket and rejected deposit ticket from OTCnet

    2. Manually confirm rejected deposit ticket on Window 211 and on message block on window input rejected ticket and new ticket number issued.

    3. Prepare in-house debit voucher. Journal using Window 221, Debit 1720 and Credit 2110. Reclass journal will be Debit 2110 and Credit 2120. Cross Reference the original 210 journal number.

    4. On new deposit ticket, cross reference the rejected deposit ticket number and journal new deposit ticket on Window 210 as a Debit 2120 and Credit 1720.

  4. If a new deposit ticket is prepared and submitted for a different amount and Form 2424 is provided for the difference:

    1. Print new deposit ticket and rejected deposit ticket from OTCnet.

    2. Manually confirm original deposit ticket on Window 211 and message block on window input rejected ticket and new ticket number issued.

    3. Prepare in-house debit voucher. Journal using Window 221, Debit 1720 and Credit 2110. Reclass journal will be Debit 2110 and Credit 2120. Cross Reference the original 210 journal number.

    4. On new deposit ticket, cross reference the rejected deposit ticket number. Journal using Window 210 as Debit 2120 and Credit 1720/ 4120/4220 or 4620.

    5. Assign DLN to Form 2424 and prepare Form 813. Journal using 400 Window.

    6. Stamp journal number on Form 2424 and Form 813 and distribute documents accordingly.

  5. If the deposit ticket is rejected by the bank due to counterfeit bill and taxpayer can be identified:

    1. Print rejected deposit ticket from OTCnet.

    2. Manually confirm the original deposit ticket on Window 211 and in message, input rejected ticket due to counterfeit bill.

    3. Retrieve information from EOD 1621 to prepare Form 2424 to debit taxpayer. (Taxpayer must be positively identified).

    4. Assign DLN to Form 2424 and prepare Form 813. Journal using Window 400.

      Note:

      If taxpayer cannot be positively identified, follow counterfeit bill procedures in IRM 3.0.167, Losses and Shortages.

    5. Prepare in-house debit voucher. Journal using Window 221, Debit 4120/4220 and Credit 2110. Reclass journal will be Debit 2110 and Credit 2120. Cross Reference the original 210 journal number.

    6. Stamp journal number on Form 2424 and Form 813 and distribute documents accordingly.

Collections Revenue Receipts IDRS Accounting Package
(RRACS Window 210)

  1. The IDRS accounting package contains SFs 215-A, IDRS Remittance Register, and IDRS Recap (AORR, EOD 16).

  2. Each SF 215-A will be journaled individually using the 210 Window, under Deposit. The RRACS window validity checks will verify total amount to the sum of all tax class amounts. It is essential that the correct amount be placed in the proper tax class fields because these amounts are posted to the database as revenue receipts.

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

    Note:

    You must NOT wait for the confirmed deposit ticket before journalizing.

  4. Any losses or shortages associated with the deposit tickets being input will have proper documentation.

  5. Entries to the SCCF suspense accounts will be made from the IDRS Recap (AORR, EOD 16).

  6. Deposit tickets and the IDRS Recap must be cross-referenced with the journal number for audit trail purposes.

  7. All DT/DVs must be date stamped when they are received in Accounting.

Regular Accounting Package and Cash Conversion
(RRACS Window 210)

  1. The regular accounting package is received with the following documents (all DT/DVs must be date stamped when they are received in Accounting):

    1. SF 215-A

    2. Form 813 (duplicate for MF and original or third copy for NMF)

    3. Form 813-A

    4. Form 3460

    5. NMF Subsequent Payments with duplicate Form 813

  2. Each Form 215-A will be journaled individually using the 210 Window, under deposit. The RRACS window validity checks will verify total amount to the sum of all tax class amounts. It is essential that the correct amounts be journalized in the proper tax class fields because these amounts are posted to the database as revenue receipts.

  3. If it is found that the detail of amount by tax class has been omitted, or is more or less than the total thereof on the original deposit tickets released to the depository, the depositing office is authorized to change the office copies in pen and ink to include the error amount on line two as individual income tax-other. The reclassification window will be used to reclassify the discrepancy amount to the correct tax class. The total amount and the date on the DT/DV must never be changed. EXCEPTION: On the ISRP deposit ticket, certain conditions may necessitate a date change. With ISRP processing, the deposit ticket is generated with the current date. During peak, processing is also done on weekends, but deposits are not made until the following regular business day (Monday). The bank will not accept a deposit with a previous day's date. Whenever this occurs, the date must be changed on all copies of the deposit ticket before the deposit is released to any area.

  4. Losses and shortages related to deposits will be documented and input with the related deposit ticket.

  5. The deposit tickets and Form 813 must be cross-referenced with the journal number, as applicable.

  6. The campus must not wait for the confirmation of the deposit ticket before journalizing the accounting packages in RRACS and all DT/DV must be date stamped once they are received in Accounting.

Accounting Package From Electronic Fund Transfer (EFT) System Deposit
(RRACS Window 210)

  1. The EFT accounting package is received with the SF 215-C, and the appropriate backup, according to the EFT payment type.

  2. Each SF 215-C will be journaled individually using a 210 Window under deposit. Amounts will be input as total amount and tax class amount. Tax class amounts will be determined by the EFT message reflected on the Treasury Financial Communication System support listing.

ISRP Accounting Package

  1. ISRP sends a 170 batch journal daily to RRACS. This journal is to be verified against the ISRP accounting package. IF there is a discrepancy, submit an ITAMS ticket to BU-CFO-RFM-RA-RS & A. If there is a problem with the ISRP batch journal, RRACS will produce the ISRP Error Report (0129). The following documents are included in the ISRP accounting package:

    1. SF 215-A

    2. IMF and BMF SCCF Listings

    3. ISRP Remittance Register

    4. ISRP General Ledger Account Number List for each deposit ticket

Lockbox Deposits via Electronic Check Processing (ECP)

  1. Electronic Check Processing (ECP) is used for Lockbox processing as of July 2011. The lockbox sites will send electronic check images and corresponding data through the ECP system to the Federal Reserve Bank of Cleveland (FRB-C). The FRB-C is the bank of first deposit for all lockbox payments. FRB-C will handle the CIR deposit, return and adjustment reporting.

  2. Form 215 Deposit tickets will be downloaded daily from ECP through a 180 batch journal to RRACS. This journal is to be verified against the ECP lockbox deposit ticket and backup information.

    1. If all agree, write or stamp the batch journal number on the SF 215-A and supporting documentation.

    If there is a problem with Lockbox batch journal RRACS will produce the Lockbox Error Report (0151).

ECP Rejected Items
  1. If Accounting receives a rejected item then:

    1. Manually confirm the original batch deposit ticket

    2. Create a Dummy debit voucher with the same Trace ID for the ECP rejected portion. Journal action: window 221 debit 1720 and credit 2110. Reclass if needed, debit 2110 and credit 21XX.

    3. Research the account and if the account is in credit status input a TC 570 to hold any refunds.

    4. Prepare the Form 2424 to debit the taxpayer; obtain DLN and prepare Form 813; journal action: window 400 debit SCCF and credit 1720.

    5. Process the Form 2424 as a walkthrough to prevent an erroneous refund.

    6. If there is a separate deposit ticket for the rejected portion, manually journal the second deposit ticket from OTCnet using Window 210 and the new Trace ID number

      Note:

      The Dummy debit will not be processed through DCF file.

Advance Payments and Cash Bonds

  1. Processing payments or cash bonds, prior to the processing of the related returns or Exam documents, will result in advance credits in the MF accounts. Such credits will be held in the accounts, appropriately coded as to the purpose, until the related debit assessment posting is made. These payments post to taxpayer accounts as TC 640. The cash bonds are further identified with blocking series 990999. In some cases, an assessment is made in the amount of the advanced payment before the related return or document is processed.

  2. Identification of cash bonds which were erroneously numbered and posted as advance payments require manual correction.

Account 4610 Unapplied Advance Payments
(Real Account, CR Normal Balance)
  1. This liability account will be used to record advance payments voluntarily made by taxpayers in anticipation of deficiency or additional assessments of all tax classes, and advance payments (including cash bonds) in pre-refund audit cases. The balance in this account represents all such payments which have not been assessed, applied to taxpayer accounts, refunded, or transferred to other offices.

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

Account 4615 IRC 847, Special Estimated Tax Payments
(Real Account, CR Normal Balance) (Ogden Only)
  1. This liability account will be used to record IRC 847 payments resulting from the Technical and Miscellaneous Revenue Act of 1988. Effective for tax periods beginning after December 31, 1987, IRC 847(2) requires certain insurance companies to make Special Estimated Tax Payments (SETPs) in the amount equal to the tax benefit derived from the additional deduction permitted under the statute. Returns with Special Estimated Tax Payments require special handling. The payments will be received on Form 1120, Form 1120-L, Form 1120-PC or as estimated payments. Credits may also be transferred from the BMF. The credits will be applied as directed by the designated area.

  2. After a Section 847 return has been reviewed, LB&I Exam will e-mail the Form 3809 Debit and Credit Copies and copy of front page of return to Ogden Revenue Accounting for module input and to be included in the taxpayer's Account 4615 file.

    1. In some cases, LB&I Exam will not want funds moved based on certain criteria. In these cases, Exam will notate in the explanation section of the Form 3809 the reasoning why funds should not be moved. Additionally, Exam will place .00 in the 1st TC on both the debit and credit copy.

    Note:

    If copies of returns are provided by Submission Processing functions, then Revenue Accounting should forward the photocopies to LB&I Exam at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ with the sender's contact information (e.g., name, phone number and e-mail). If fax does not work, contact LB&I Exam directly at phone number≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Subsidiary records established to identify the taxpayer and amount of payment will support Account 4615. The subsidiary file will be maintained by individual, company, and accident year. Transfers of payments should also be recorded.

Deposit Discrepancies

  1. SF 215-A are received from depository banks because of errors made in original deposit tickets. These deposit tickets can be processed by off-setting SF 5515. The deposit ticket can also be applied to the taxpayer's account or, if the date of the amount is less than one year old, it can be journalized to URF. The journalization of credit amounts equal to, or more than, one year old, and/or amounts less than one year old with doc codes 48 and 58, are journalized to XSF. Documentation is required.

    1. If you receive an error code for a duplicate deposit ticket or debit voucher when journaling, research must be completed to ensure the item is a true adjustment and not a duplicate. Any uncertainties should be directed to the RACS DBA or Manager.

    2. If the deposit ticket or debit voucher is found to be a true duplicate, research and resolve within five days of discovering the duplicate, to minimize the impact on the Statement of Difference.

    3. Any deposit ticket or debit voucher received with an aged confirmed date must be journaled immediately upon receipt in the RACS function to minimize the impact on the Statement of Difference.

  2. Offsetting debit vouchers:

    1. Receive DT and DV.

    2. Input SF 215-A, using total amount and tax class amount. Entry should be made to DCF.

    3. Input SF 5515, using debit voucher total amount.

  3. Journalization of credit to taxpayer's account:

    1. Receive deposit ticket and Form 3244 with Form 813.

    2. Entries will be made from SF 215-A, total amount and tax class amount.

    3. Entry to SCCF suspense account will be made from duplicate Form 813.

    4. Reclassify, if necessary.

  4. Journalization of credit to URF:

    1. Receive SF 215-A and Form 3244, numbered to URF, with one copy of Form 813.

    2. Entries will be made from SF 215-A.

    3. Amount and item entries to URF will be made from Form 813.

    4. Document and Form 813 will be stamped with journal number and forwarded to Unidentified for input to URF.

  5. Journalization of credit to XSF:

    1. Receive SF 215-A and Form 3809.

    2. Entries will be made from the SF 215-A.

    3. Amount and item entries to XSF will be made from Form 8758.

    4. Form 8758 will be stamped with journal number and forwarded to the appropriate area that maintains XSF.

  6. All journalization to URF and XSF must be researched until the deposit discrepancy has been resolved. If a deposit ticket appears to have the wrong year date, the bank can be contacted to determine the correct date and asked to correct the date, if necessary.

  7. It is the responsibility of the Bank Discrepancy function, to see that all journalizations to URF and XSF are researched until the deposit discrepancy has been resolved. This function is generally within the Dishonored Check, Unidentified, or Excess Collection units.

    Note:

    When requesting a Lockbox Electronic Check Presentation (ECP) debit/credit adjustment or representment, from the bank a form must be filled out and emailed. See IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF) for the form and further instructions.

  8. If an AORR package is received with an out-of-balance condition, see IRM 3.17.64.28.1.1 for procedures.

  9. Refer to IRM 3.0.167, Losses and Shortages and IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF), for unresolved deposit discrepancies between IRS federal depositories and lockbox banks.

    Note:

    Every case moved to Account 7650 must be 100% reviewed initially to ensure the items meet the guidelines for application to Account 7650, as stated in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF) and IRM 3.0.167, Losses and Shortages. If a deposit discrepancy case results from an ECP deposit, the case should be moved to the 7649 ECP deposit discrepancy account. Follow instructions in IRM 3.0.167 for write-off procedures.

Scorecard

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

  2. SP/CFO Scorecard consists of seven elements:

    1. End of Month Balancing for CARS Submission (Formerly SF 224)

    2. Supplemental CARS Submission (Formerly SF 224 Supplemental, Statement of Transactions)

    3. Statement of Difference

    4. Form 3997

    5. Trace ID (This will only be scored on an annual basis)

    6. Suspense Account - 20F3885

    7. Suspense Accounts - 20F3500 and 20F3502

    8. Informant Reward 20X5433 account (Ogden only)

SP/CFO Scorecard - End of Month Balancing for CARS Submission (Formerly SF 224)

  1. End of Month Balancing for CARS Submission (Formerly SF 224) Timely Submission: (Effective July 15, 2013)

    • Green -End of Month Balancing Complete and Email to CFO by 11:00 PM local time on Second business day.

    • Yellow -End of Month Balancing Complete and Email to CFO from 11:01 PM to 1:00 PM local time on Second business day.

    • Red - End of Month Balancing Complete and Email to CFO after 1:00 PM local time of the second business day .

  2. End of Month Balancing for CARS Submission -Completeness

    • Green - All RRACS transactions reported.

    • Yellow - Partial RRACS transactions reported.

    • Red - No RRACS transactions reported.

  3. End of Month Balancing for CARS Submission -Accuracy

    • Green - All RRACS transactions accurate.

    • Yellow - Partial RRACS transactions accurate

    • Red - No RRACS transactions accurate.

SP/CFO Scorecard - Supplemental CARS Submission (Formerly SF 224 Supplemental, Statement of Transactions)
  1. Supplemental CARS Submission -Timely Submission:

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

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

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

    Note:

    An email notification to CFO HQ is required stating the submittal of the CTA Supplemental has been completed. This email will be used by CFO in the Timely Submission criteria.

  2. Supplemental CARS Submission - Completeness:

    • Green - All transactions completed.

    • Yellow - Partial transaction completed.

    • Red - No transactions or journals completed.

    Note:

    After all supplementals are complete, Service Centers must check balances of accounts 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.

SP/CFO Scorecard - Statement of Difference

  1. On Time Submission:

    • Green - .Reconciliation completes in three workdays after the 119 journal posts to RRACS.

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

    • Red - Reconciliation completes in six workdays after the 119 journal posts to RRACS.

  2. Statement of Difference - Completeness:

    • Green - All columns of information provided and accurate.

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

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

  3. Statement of Difference - Supporting Documentation:

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

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

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

  4. Statement of Difference - Aged Items:

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

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

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

SP/CFO Scorecard - Form 3997

  1. 3997 - Timeliness :

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

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

    • Red - Received on or after the 28th.

  2. 3997 - Completeness and Accuracy:

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

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

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

  3. 3997 - Supporting Documentation:

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

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

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

  4. 3997 - Signature:

    • Green - All parties signed.

    • Yellow - No yellow option available.

    • Red - Not all parties signed.

  5. 3997 -Aged Reconciled Item(s):

    • Green - No aged reconciled item(s).

    • Yellow - One or more aged reconciled item(s) reported for the first time.

    • Red - One or more aged reconciled item(s) reported two or more consecutive times.

  6. 3997 - Unreconciled Item(s):

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

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

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

Business Resumption/Disaster Recovery Form 3997 Contingency Plan
  1. In the event that the campus is closed (e.g., disaster, inclement weather, power outage, etc.) on the 25th day of the month (due date of Form 3997) the campus will be provided an extension in writing.

  2. In the event the campus does not submit the Form 3997 by the extension due date, normal scorecard ratings will apply. See IRM 3.17.64.29.3.

SP/CFO Scorecard - Trace ID (Annually Only)

  1. Trace ID - Timely Submission:

    • Green - On the 17th workday of the month of April.

    • Yellow - One business day after.the 17th workday of the month of April.

    • Red - Two business days after the 17th workday of the month of April.

  2. Trace ID - Completeness:

    • Green - All column information provided.

    • Yellow - Missing details on five (5) or less transactions

    • Red - Missing details on more than five (5) transactions

  3. Trace ID - All Items Have Been Reconciled:

    • Green - All columns information provided

    • Yellow - Error type "Z" indicated on five (5) or less transactions

    • Red - Error type "Z" indicated on more than five (5) transactions

  4. Trace ID - All Managers Have been Contacted:

    • Green - All managers have been contacted (yes)

    • Red - All managers have been contacted (no)

  5. Trace ID - Signature:

    • Green - All parties signed (Preparer/Reviewer)

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

SP/CFO Scorecard - Suspense Account 20F3885

  1. Suspense Account 20F3885 - Timeliness

    • Green - Suspense Account 20F3885 worksheet is received by 1:00 PM local time on the third business day of the following month.

    • Red - Suspense Account 20F3885 worksheet is received after the 1:00 PM local time on the third business day of the following month.

  2. Suspense Account 20F3885 - Duration in Suspense

    • Green - 30 days or less in suspense.

    • Yellow - 31 to 45 days in suspense. (Requires an action plan including the cause of the balance and all backup documentation) Accounting Operation Manager will also be contacted.

    • Red - 46 to 60 days in suspense. (Requires an action plan including the cause of the balance and all backup documentation) Campus Director will also be contacted.

      Note:

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

  3. Suspense Account 20F3885 - Efficiency

    • Green - 5% or less

    • Yellow6% to 9% or less

    • Red - 10% or more

SP/CFO Scorecard - Suspense Account 20F3500 and 20F3502 Process

  1. Suspense Account 20F3500 and 20F3502 - Timeliness

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

    • Red - Submitted worksheet after 1:00 PM local time on the third business day of the month.

  2. Suspense Account 20F3500 and 20F3502 - Efficiency

    • Green - Zero amount within current month.

    • Red - A penny 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.

SP/CFO Scorecard - Informant Reward Account 20X5433 (Ogden only)

  1. Informant Reward Account 20X5433 - Timeliness

    • Green- Informant Reward Balance is received by 1:00 PM local time on the third business day of the following month.

    • Red- Informant Reward Balance is not received by 1:00 PM local time on the third business day of the following month.

  2. Informant Reward Account 20X5433 - Efficiency

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

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

  3. Informant Reward Account 20X5433 - RRACS Manager Signature

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

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

Remediation Plan

  1. The Remediation Plan is a memorandum for the Chief, Accounting and Tax Payment Branch, from the Accounting Operation Manager, for any scorecard criteria with a "yellow" or "red" score

  2. The Remediation Plan outlines not only the error, but the measurable steps the campus will take “to prevent” these instances in the future. It must contain the following information, as appropriate:

    1. Detailed explanation of the imbalances(s)

    2. Attempts made and/or methods used to correct imbalance(s)

    3. Explanation of late submission of report

    4. Detailed explanation of incomplete/inaccurate data

    5. Explanation of missing signature

    6. Future preventative actions

    Note:

    The Remediation Plan memorandum must be signed by the Campus Field Director or designee.

  3. The signed Remediation Plan should be kept in the GAO file.

Scorecard HQ Submission Processing Contacts

  1. The following table shows the Submission Processing HQ Analyst who is responsible for assisting the campus on Scorecard issues.

    Campus Primary HQ SP Analyst Backup HQ SP Analyst
    Andover/Fresno Angela Reyes 559-454-6611 Susan Hankerson 267-466-3588
    Atlanta/Kansas City Mike Magana 816-499-4589 Susan Hankerson 267-941-3588
    Austin Susan Hankerson 267-466-3588 Angela Reyes 559-454-6611
    Cincinnati/Brookhaven/Memphis Mike Magana 816-499-4589 Angela Reyes 559-454-6611
    Ogden/Philadelphia Susan Hankerson 267-941-3588 Angela Reyes 559-454-6611
    E-FAX for Headquarters 855-225-1558

Service Center Suspense Files

  1. These accounts record the Service's liability for the various suspense files. Credits in these accounts are normally in process for application to a tax liability. This includes pre-payments such as estimated tax, for which no tax assessment has yet been made, but a tax liability is anticipated.

General Ledger IMF and BMF Accounts for SC Suspense

  1. The following are the IMF and BMF SC Suspense Files.

Account 4120 SC Suspense for the MF BMF
(Real Account, DR/CR Normal Balance)
  1. This liability account is used to record all those BMF pre-journalized debits and credits that are in process in the campus for posting to the BMF. Upon receipt in the campus, amounts will be entered in Account 4120, and will remain while processing is being accomplished. When processing is complete, and items are on magnetic tape for shipment to ECC, they will be removed from this account.

  2. This account is supported by the BMF SCCF. All items placed in this account must be recorded in detail on the SCCF.

  3. External subsidiary records are the SCCF files for BMF.

Account 4220 SC Suspense for the MF IMF
(Real Account, DR/CR Normal Balance)
  1. This liability account is used to record all those IMF pre-journalized debits and credits that are in process in the campus for posting to the IMF. Upon receipt in the campus, amounts will be entered in Account 4220, and will remain while processing is being accomplished. When processing is complete, and items are on magnetic tape for shipment to ECC, they will be removed from this account.

  2. This account is supported by the IMF SCCF. All items placed in this account must be recorded in detail on the SCCF.

  3. External subsidiary records are the SCCF files for IMF.

CARS Direct Reporting and Reclassification Submission (Formerly Standard Form 224), Statement of Transactions
(RRACS Report 020, 20A and 20B)

  1. As of October 2014, all IRS ALC’s became CARS direct reporters. As a result, all disbursement, collection, and IPAC transactions are reported directly to CARS from the financial institutions. RRACS Reports 020 and 020A are used to ensure the RRACS system is in balance. The 020 and 020A reports list all CARS transactions and all direct reported transactions to CARS respectively. IRS only has the capability to send reclassifications to CARS using the CTA (Classification Transaction and Accountability) adjustments by the following methods:

    1. CARS bulk upload - IRS HQ uploads the RRACS 0118 report to CARS on the second workday to report all reclassifications for all of the service centers. The RRACS 0118 upload mirrors the transactions reported on the RRACS 020B report.

    2. Manual Reclassification - Further reclassifications may be needed following the bulk upload. These reclassifications are entered online in the CARS system by the service center after the bulk upload is completed.

  2. The CTA adjustment only requires the reclassification reporting that was formerly Section I of the SF 224 process. All reclassifications on the CTA adjustment must balance to zero between the Treasury Account Symbols. Section II and III are replaced by the financial institution directly reporting the information to CARS.

  3. RRACS 020, 020A, and 020B will automatically be generated in EOM processing, but may be generated separately, by selecting the Reports main menu, then selecting the reports on the Month- End menu.

  4. The CARS program (formerly GOALS II) will not accept a TAS with a point under the 5XXX series for disbursement money. CARS WILL ONLY RECOGNIZE THESE SYMBOLS WITH THE EXTENSIONS AS RECEIPTS. (e.g., OIC User Fees are entered as receipts under 20X5432.4, but as disbursements it would be entered only as 20X5432) If there is more than one disbursement, they will need to be added together and then entered under 20X5432. (e.g., disbursements under 20X5432.1, 20X5432.3, and 20X5432.4 would be added together and entered under 20X5432).

  5. Beginning with the July 2013 SF 224, the sites will no longer input and transmit their SF 224 to CARS, CFO will be transmitting the monthly CARS Reclassifications (formerly SF 224) through the CARS Reclassification Bulk Upload process. Prior to sending an email to CFO that the site has completed the balancing, he End of Month checklist must be completed through generating reports for end of day Prior to emailing CFO, the checklist must be signed by the Accounting Operation Manager. Once the site has received an email back from CFO stating the CARS reclassification upload has been transmitted, login into CARS and print the CARS Reclassification Report and the RRACS 020, then complete the remaining areas of the checklist, see IRM 3.17.64.31.1, End of Month Checklist for checklist.

  6. Month end balancing should be completed and an email sent to the CFO mailbox on or before 12:00 noon LOCAL TIME ZONE on the second workday of the new month stating the end of month balancing has been completed. If for any reason, the campus cannot make this deadline, you must contact CFO immediately. CARS Reclassification is part of the CFO and Treasury Scorecard.

  7. After CFO submits original CARS submission according to procedures, agencies can submit a supplemental CTA Reclassification, if needed, by the 3rd workday. The supplemental CTA reclassification does not replace the original CARS Reclassification, but is used to make adjustments to it. Supplementals will not be available after the 3rd workday, unless requested by BFS. If a supplemental is requested beyond the 3rd workday it will cause a Treasury yellow or red scorecard, and must be approved by CFO before submitted to CARS.

    Note:

    A supplemental CTA reclassification must be completed online through a CARS CTA Supplemental.

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

  9. All supplemental changes following the original CTA upload must have back up documentation to support these changes and be kept behind the signed RRACS 020 and 020B Report and the posted CARS Statement of Transactions copies. This should be retained at the campus for use by GAO in its site audit.

    Note:

    Changes will have to be manually input to CARS on a supplemental CARS CTA Reclassification after CFO transmits the original.

End of Month Checklist

  1. Below is the End of Month Checklist that must be used and signed prior to transmitting the SF 224, effective July 15, 2013.

    End of Month Checklist Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
    1. Make sure the following have been journalized for the month__________
    a) Refunds, 1098s (check the ALC Payment Details from CARS)
    b) IPACs (Verify the IPACS are reported and journalized to the correct appropriation). This will keep CARS and RRACS in balance. Ex. 3885.11 & 20X0903.
    c) Check Refund Match for any manual confirmations to be done.
    d) MDR Deletes (Journals 908 and 909)
    e) Do all correction journals and modifications.
    f) Ensure the URF to XSF rollover is done (4620 to 6800), if applicable in RRACS in your campus.
    g) Make sure all Batch Journals were run in for the month.
    h) Ensure that deposit tickets that cross accounting months for ISRP and Lockbox are journaled to the correct accounting period.
    i) Ensure all DT/DV’s have been journaled. (This includes all confirmed OTCnet DT/DV’s that have not been received).
    j) Verify the arbitrage refunds are journaled to the correct Treasury Account Symbol and general ledger account.
    *2. Check MTRIAL to ensure that any accounts your center does not work with are ZERO balances.
    *3. Balance 4801-4808 and 4811- 4819 to MTRIAL to make sure it was journaled correctly.
    *4. Check MTRIAL for reverse status.
    *5. Ensure Account 1600 is not in reverse Status (SC Recaps and daily tapes).
    *6. Verify no future journals were journaled in current month.
    *7. Balance to your Less Non Cash Receipts (RRACS 020).
    *8. Ensure the principal and interest sections are in balance by checking NTRR (Under EOD).
    *9. Ensure the NTRR (#023) Grand Total (under Report for Month Ending) equals RRACS 020, 20X0903 and 20X0904.
    *10. Compare the Collection Support Listing to the DT/DV RRACS 017 report. Resolve any SOD issues.
    *11. Compare the ALC Payment Details and IPAC Support Listing to the Confirmed Refund RRACS Report #031 to resolve any SOD issues.
    12. Balance your CARS Submission 020 Report with the DTRIAL
    Run End of Day Reports
    **** OPERATIONS MANAGER'S signature is required after all the above procedures have been completed.
    Signature ________________ Date_____________
    *1. Complete month end balancing and generate and print RRACS Reports from MONTHEND ALL.
    *2. Change Accounting Period.
    *3. Email *CFO RFM IRACS & Revenue Systems & Analysis mailbox by 11:00 a.m. local time zone stating that items #1 and #2 are completed.
    *4. Once the site receives confirmation email from CFO, print the Statement of Transactions from CARS (CTA/ SF 224) for signature.
    *5. If necessary, the service center can make pen and ink transmissions on a CARS supplemental. Maintain supporting documentation.
    *6. E-mail the money amount reported for Public Debt to PrincipalAccountingTeam@bpd.treas.gov and frt@bpd.treas.gov also CC: &CFO RACS- HQ.
    Distribute the EOM reports to appropriate areas.
    Third Workday
    Perform the CARS Reconciliation by uploading the 100 &103 Report. (This needs to be reviewed and signed).
    Ensure 20F3500 and 20F3502 has a zero balance.(CARS ALC Activity) Email by 1:00 PM local time.
    Ensure 20F3885.11 has a variance of 5% or less. (CARS ALC Activity and Net Disbursements from RRACS 020). Email by 1:00 PM local time.
    Submit a CARS Supplemental (if needed) by 1:00 PM local time.
    (Ogden only) Generate (print or PDF) and have RACS manager sign the CARS GWA Account Statement for 20X5433.

    Reminder:

    DO NOT GENERATE AND PRINT ANY REPORTS FOR THE NEW MONTH UNTIL NOTIFIED BY HEADQUARTERS. Example: Junes EOM is completed, do not generate any reports for July until notified.

State Income Tax Levy Program (SITLP)

  1. SITLP is a compliance program that levies state income tax refunds to satisfy federal tax liabilities.

  2. The Submission Processing SITLP Coordinator is located at the W&I Kansas City site. The SITLP Coordinators have overall responsibility for the coordination between the state and the site. Procedures have been provided for each SITLP coordinator and have been distributed to the NHQ Collection. A list of the SITLP Coordinators can be found on the IRWeb on the Who/Where tab under SERP.

  3. The following is a listing of the participating states. The states become operational once a memorandum of understanding (MOU) is signed, and a successful test files are processed.

    STATE STATE
    Alabama Michigan
    *Alaska Minnesota
    Arkansas Mississippi
    Arizona Missouri
    California Nebraska
    Colorado New Jersey
    Connecticut New Mexico
    Delaware New York
    District of Columbia **North Carolina
    Georgia Ohio
    Idaho Oklahoma
    Illinois Oregon
    Indiana Pennsylvania
    Iowa Rhode Island
    Kansas South Carolina
    Kentucky Utah
    Louisiana Vermont
    Maine Virginia
    Massachusetts West Virginia
    Maryland Wisconsin
    1. **North Carolina is participating in SITLP; however they do not use EFTPS to send in their SITLP levy payments.

  4. The non-EFTPS state must send their payments (checks) to associate with the electronic files to keep the integrity of the state receipts and validation process. Payments by check are only received by the non-EFTPS state.

    Note:

    By January 2016, North Carolina will be converted to EFTPS for their SITLP payments.

Accounting Branch Procedures and Responsibilities for SITLP

  1. The SITLP coordinator receives the check and it is maintained in Receipt and Control. A copy of the check is provided to Accounting (with the received date).

  2. Non-EFTPS states will transmit their SITLP files back to the IRS, via the Secure Data Transfer (SDT) portal.

  3. Accounting will maintain a log of the received electronic file and payment from the state to ensure accounting for all payments and files.

  4. The SITLP Coordinator is responsible, or will work with their respective Computing Center, to have the electronic file processed. The electronic file and payment should be received on the same day, or within a day of each other. The received date of the check will be the posting date of the levy payment. Auto TDA 55 is requested everyday automatically at noon, local time. Upon receipt of a check, the SITLP Coordinator will verify that the electronic file is present by checking the 5540 Report. If the file is present, then the Coordinator can request the running of the TDA 56.

  5. If the electronic file is determined to contain incorrect data, the SITLP Coordinator will immediately request that the state transmit another file. The state will transmit another file through SDT. This file will contain the original sequence number, but with an "R" added. (e.g., 0001 when received would be 0001R.)

  6. TDA 5540 Run Controls Report will be generated and forwarded to Accounting if the data on the electronic file is valid. This information can be found on Control D. When the TDA 55 is received, balance it to the check amount and make a corresponding log entry.

  7. TDA 55 Error Report will be generated and forwarded to Accounting if there is a problem with the electronic file. This information can be found on Control D. The SITLP Coordinator will be contacted to coordinate resolution of the error with the state.

  8. If the received date of the check and the run date are different, ECC must be notified that the transaction date in the TDA 56 card file needs to be changed to be the received date of the check. Sites that edit the card file themselves must ensure that the received date of the check is used as the transaction date, and not the run date.

  9. RACS function will check Control D for, or be notified by the SITLP Coordinator of a successful TDA 55 run. IF successful, RACS will:

    1. Edit card file TDA56-CARDS on the mainframe, and input the required information (file number, trans date (IRS received date of payment), check control number, etc.). See IRM 3.8.45.22, State Income Tax Levy Program, for additional information.

    2. Open an ITAMS ticket to run the TDA56.

    3. Check the following day Control D to ensure that the TDA56 was ran.

    4. Contact Deposit (so deposit can be made within 24 hrs) and provide the Trace ID to deposit the check(s) (a separate deposit ticket for tax class 2 will be completed).

    5. Notify the SITLP Coordinator when all the above actions have been completed.

Statement of Difference

  1. The CARS/RRACS Statement of Difference (SOD) Summary report is a compilation of CARS and RRACS reports to ensure all deposits (revenue) and disbursements (refunds) are captured on a monthly basis. The CARS/RRACS SOD lists all deposits and disbursements discrepancies from each Submission Processing Center(s) by Agency Location Code. It is used to identify, reconcile, and resolve differences between IRS deposits and disbursements as reported by the Submission Processing Center(s) and BFS.

  2. The CARS reports are available after BFS has completed their monthly balancing. Once this information is available, CARS and RRACS reports can be used to create the CARS/RRACS SOD Summary report, which will show a summary by month presented with any discrepancies. Under the Deposit-in-Transit System the detail audit responsibility will be performed by the depositing agency rather than BFS. This is to be done consistently on a monthly basis following the report month. Prior to month-end processing, balance the CARS Collection Voucher with RRACS 017 report for deposits and the TDO Payments and IPACS Support Listing with the RACS 031 report for disbursements.

  3. The CARS/RRACS SOD Summary report and the Deposit/Disbursement Reconciliation reports are due monthly to CFO three workdays after the 119 journal posts to RRACS. An E-mail confirmation should be sent to CFO three workdays after the 119 journal posts, and should be printed and kept in a file with each campus reconciliation report. The E-mail confirmation document confirms the time and date the reconciliation report was sent and received by the CFO HQ analyst. All deposit and disbursement discrepancies for each site must be reported on the reconciliation report that was provided by CFO. These reports will give all the detail records that make up the difference(s) reported between RRACS and BFS, with an explanation of what action has been taken to resolve each issue. The report must be emailed with any required backup documentation scanned if possible or faxed to the CFO Management and Program Analyst at 202-803-9691 and to the SP HQ Analyst for your campus. The comprehensive history sheets must be available when requested from CFO.

    Note:

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

  4. Use the following sources for the information required on the CARS/RRACS SOD Summary report:

    1. Month - Month presented on RRACS 017 report (ex. Month 01)

    2. RRACS 017 - Net Total Deposit Ticket/Debit Voucher amount for the month.

    3. CARS Collection Voucher Support Listing - Subtotal amount for the month.

    4. Deposit Discrepancy - Difference between RRACS 017 and CARS Collection Voucher. The detail of this discrepancy must be presented on the Deposit Reconciliation report.

    5. RRACS 031 - Total Payments - Section II SF224 amount.

    6. IPAC Support Listing - Grand total amount

    7. TDO Payments - ALC 2009XXXX total amount.

    8. Disbursement Discrepancy - Difference between RRACS 031, IPAC support listing, and TDO payments. The detail of the discrepancy must be presented on the Disbursement Reconciliation report.

  5. Use the following sources for the information required on the Deposit/Disbursement reconciliation report:

    1. Audit Mo/Yr - From the DT/DV.

    2. DT/DV# - Voucher number from the DT/DV.

    3. .Date Presented (Box 2 date) - OTCnet (formerly TGAnet) voucher date.

    4. Confirmed Date on Ticket/CIR - Confirmed date on OTCnet (or CIR) deposit ticket. Created date on an OTCnet (or CIR) debit voucher. Created date on an adjustment DT/DV.

    5. Date Received in RACS Function - Received stamp date on DTDV.

    6. Treasury Amount - CARS Collection Voucher Support Listing.

    7. IRS Amount - RRACS 017.

    Note:

    Cashlink 2 was replaced by TRS, which has been replaced with CIR. Since the cross over to CIR, campuses no longer have the ability to input directly to CIR as in the past with Cashlink 2. If an issue arises, the campuses will have to go back to the bank or originating source to correct any CIR information.

    Note:

    For further reconciliation procedures see IRM 3.17.63, Redesigned Revenue Accounting Control System.

Substantiated Credits

  1. Substantiated credit transactions are initiated by taxpayer submission of a receipt, canceled check, or other acceptable document, substantiating a claimed payment or credit. The term substantiated payment is limited to payments that are satisfactorily substantiated, but the payment application cannot be identified and transferred to the correct account. Use of the substantiated payment procedure should be infrequent.

General Ledger Account for Substantiated Credits

  1. The following account is associated with substantiated credits.

Account 6570 Substantiated Credits Allowed
(Nominal Account, DR Normal Balance)
  1. This account will record the allowance of substantiated credits not previously recorded or allowed. Substantiated payments will be approved for credit to taxpayer IMF, BMF, or NMF accounts, upon receipt in Accounting of a fully documented case file which includes such items as a receipt, cancelled check, and documentation of research performed. The case will also have the record of administrative approval and authority for the credit allowance.

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

  3. Substantiated credit cases will be accepted for approval by the Operation Manager who has the functional responsibility to maintain the integrity of the revenue accounting system. Cases not fully documented or reflecting incomplete research will be rejected.

  4. This account is also used to record and control credit application tentatively allowed an 'injured' taxpayer after preliminary research has failed to locate the payment, but has proven without a doubt that the taxpayer has not received benefit from a payment made to IRS. Requests for a tentative credit will be received by the Payment Tracer function in Accounting only after certain conditions are met and documented in accordance with IRM 21.5.7, Payment Tracers. These case history files will be maintained in the Payment Tracer Function.

  5. If it is determined by Payment Tracer (hard-core) research that the documentation needed to locate the missing payment has been destroyed or cannot be located, procedures will be followed in accordance with IRM 21.5.7, Payment Tracers. The case file, including the debit copy of Form 3809 used to allow the tentative credit will be moved to the other subsidiary file of substantiated credits referred to in (1) above after it has been administratively approved by the Operation Manager.

  6. When research results in the location of the payment, the credit will be reversed out of Account 6570 within the same fiscal year or Account 9998 if it has been substantiated in a prior year.

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

Substantiated Credit Posting Documents
(RRACS Window 400)

  1. RACS will receive a Form 3809 with Form 813.

  2. Documents should balance to Form 813 total.

  3. Prepare Form 8166, if applicable.

  4. Journal Form 3809.

    1. Using the RRACS 400 Window, which can be found under the Accounting Application Main Menu under Miscellaneous Application, input the total amount from Form 813.

    2. The journalization will be a Debit to Account 6570 (Substantiated Credits Allowed) and a Credit to either Account 4120 (BMF), 4220 (IMF) or 4420 (NMF) depending on the documents.

    3. The journal number must be stamped or written on Form 3809 and Form 813.

    4. Pull Form 813, Part 2, for input to SCCF.

    5. Forward Form 813, Part 1, and distribute documents accordingly.

Trace ID Number

  1. It is mandatory that every DT/DV have a unique Trace ID and that it contain 14 characters for the DT/DV, 20 characters for the individual payments associated with a DT/DV.

Trace ID Number Format

  1. Accounting DT/DVs (e.g., Overstated or Understated Deposits): For the deposit ticket, RACS function will need to use BBTS to get the Trace ID assigned (System ID 25). BBTS will provide the ability to request only a Trace ID without a Form 813 listing through a screen query for only the Trace ID Number. For debit vouchers use the original Trace ID Number from the original deposit ticket.

  2. Below is the Trace ID number format:

    Field Format Definition
    Site ID nn Campus FLC, Bank ID, or other Site ID
    System ID nn Defined below
    Deposit Date YYYYDDD Julian Date
    Seq Number nnn For each deposit date, begin with 001 and increment each additional deposit by 1
    Transaction Seq Number nnnnnn This field is relevant only for the Payment Transaction Record. For each payment summarized in a deposit ticket, beginning with 000001, sequentially increment the Transaction Seq Num for each transaction that comprises the Manual
  3. The 14 character Trace ID number basically represents one DT/DV. The addition of the 6 character Sequence Number on each detail transaction uniquely identifies each transaction for that DT/DV.

  4. These Site IDs are valid for the campus Location Codes below:

    Code Campus
    07 ATSPC
    08 ANSPC
    09 KCSPC
    17 CSPC
    18 AUSPC
    19 BSC
    28 PSC
    29 OSPC
    49 MSC
    89 FSPC
  5. These Site IDs are valid for the lockbox bank Location Codes below:

    Code Lockbox Bank
    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. In addition, some systems, such as IA User Fee Sweep, utilize an Area Office Code rather than a Campus Code. Those values are quite varied, so the Custodial Detail Data Base (CDDB) allows for any unique numeric value to be valid.

  7. These System IDs are valid for the functions below:

    System Function
    01 EFTPS
    02 ISRP Payment Transactions
    05 Lockbox Bank Transactions
    10 SITLP Levy Payments
    12 Receipt and Control Manual Deposits for External Leads and Accounting CIR deposits for External Leads (Effective July 15, 2013)
    15 Receipt and Control Manual Deposits
    20 RACS DCF DV
    25 Accounting DT/DV, including External Leads (This will no longer be used for External Leads effective July 15, 2013)
    30 FTD DT/DV

    Note:

    FTD has merged with EFPPS.

    35 IDRS Installment Agreement User Fee Sweep
    40 Automated Insolvency System (AIS)
    45 Automated Offer in Compromise (AOIC)
    50 ITIN
    55 Field Assistance - Taxpayer Assistance Centers (TAC)
  8. BBTS provides a subset of these System IDs for requesting a Trace ID number for manual DTs as listed below:

    Subset Function
    12 Receipt and Control Manual Deposits for External Leads and Accounting CIR deposits for External Leads (Effective July 15, 2013)
    15 Receipt and Control Manual Deposits
    20 RACS DCF DV
    25 Accounting DT/ DV,
    30 FTD DT/DV

    Note:

    FTD has merged with EFPPS.

    40 Automated Insolvency System (AIS)
    45 Automated Offer in Compromise (AOIC)
    50 ITIN
    55 Field Assistance - Taxpayer Assistance Centers (TAC)

Trace ID Reconciliation Procedures

  1. The Trace ID number is used to identify each Deposit Ticket (DT)/Debit Voucher (DV) and its corresponding payments. It will be utilized as a tracking mechanism. As of January 2008, all input payment systems will automatically assign a Trace ID to each DT/DV. Manual deposits such as insolvency payments, that require a Form 813, will be assigned a Trace ID using the Batch Block Tracking System (BBTS). The Custodial Detail Data Base (CDDB) will track all payments that include a DT/DV and balance the transactions against the DT/DV totals, which have been entered in the RRACS General Ledger. The Trace ID Reconciliation is part of the Treasury scorecard and will be scored annually.

  2. The RACS Function will reconcile the Campus DT/DV Reconciliation Report (J55C01) yearly (for the month of March) to report the balancing of transactions between CDDB and RRACS. This report must not be altered. All Trace IDs must remain on this report. This report will be used to alert the service center, CFO and SP HQ of any imbalances between Trace ID's and any processing problems within the service center. the RACS Team will only reconcile imbalances that are $100,000 or greater.

  3. The Campus DT/DV Reconciliation Report (J55C01) will list all Trace ID's received on the RRACS DT/DV file for an accounting period, listing CDDB pre-posted information and RRACS information similar to the RRACS 017 report. This report will be sorted 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 what month the original transaction took place.

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

    3. Column C (RRACS Trace ID) indicates the 14 digit Trace ID that was entered into RRACS.

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

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

      Note:

      An asterisk or a numerical value greater than 1 indicates a duplicate Trace ID was entered. The duplicate Trace ID may be found with in any month.

    6. Column F (DT/DV Amount) indicates the amount of the deposit ticket or debit voucher in RRACS.

    7. Column G (CDDB Pre-posted) indicates the amount of the deposit ticket or debit voucher 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 Trace ID Error Type as identified in the legend.

    10. Column J indicates field in which the RACS Manager or Lead or Reports analyst will indicate only yes or no if the function that caused the Trace ID mismatch was contacted (All FUNCTIONS MUST BE CONTACTED by the 16th workday of April).

    11. Column K (Comments) indicates where analyst will provide detailed comments regarding research efforts and resolution in identifying cause of Trace ID mismatch. Comments must be provided for each Trace ID mismatch.

  4. Procedures for Campuses:

    1. The Campus DT/DV Reconciliation Report (J55C01) will be E-mailed to the DBA for each individual campus by the 13th workday of April. The following parties will be copied on the E-mail: Accounting Operations Manager, Department Manager, RACS Manager, Reports Analyst, Planning & Analysis Analyst.

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

    3. Technician will need to research the accounting package and any additional reports to identify the cause of the Trace ID error.

    4. Once the cause of the error is identified, enter the Trace ID error code into Column I using the key below:

    ERROR TYPE DESCRIPTION Acceptable Comments
    A Typo error in Trace ID input "Input As" or "S/B" xx-xx-xxxx-xxx-xxx, Area
    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 deposit tickets/debit vouchers No comment necessary
    D Transaction was added after deposit was submitted at end of day Added/Deleted, Why
    H Foreign check issues with Banks (cash conversion issues) Explain why
    I Holding accounts/open items (i.e., DCF, URF) No comment necessary
    J Transactions that will not hit CDDB (i.e., 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 formerly Accounts Management Taxpayer Assurance Program (AMTAP) group."

    M Void, Washed or D-Applied checks Date xx-xx-xxxx / For washed, what DT/DV #
    N Closed Cases (i.e., DCF, URF) URF/DCF, Date
    P Duplicate payment created by the TAC office Explain why
    Z Unresolved mismatch still researching (this error code will result in a non-green score) Explain why
  5. After the cause of the Trace ID mismatch is identified, the technician will enter the detailed explanation into the Column "K" on the spreadsheet.

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

    Note:

    If the Trace ID mismatch is on cash processed in the CARE Field Assistance (FA) TAC's, refer the issue to the Area Office Analyst designated for remittances.
    FA Area 1: Linda M Henry
    FA Area 2: Tammy Coleman-Jones
    FA Area 3: Deborah Meador
    FA Area 4: Lori Andre

  7. After completion of the comments, the analyst will sign the spreadsheet (as the preparer) and then have a first review performed prior to sending through the appropriate chain of command to the Accounting Operations Manager to do a final review and sign (as the certifying officer).
    Reviewer Instructions:

    1. The Preparer is the reviewer of 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 reviewing the backup documentation on the haphazard basis, detail explanations exists, and the report has been signed by the preparer.

      Note:

      Examples of backup/supporting documentation include but is not limited to the original deposit ticket, original debit voucher, adjustment voucher, copy of check from RTR for ISRP/Lockbox and IDRS prints

    3. The Certifying Officer is typically the Accounting Operation 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 back-up documentation will remain in the campus for the required retention time stated in Document 12990, Records Control Schedules.

  9. Campus must E-mail the completed spreadsheet, keep a copy of the E-mail for confirmation and either fax or E-mail the supporting documents for EFTPS, Lockbox and ISRP to CFO by the 17th workday of the month of April and also email the HQ SP Analyst mailbox at &W&I SP:RRACS. The E-mail confirmation document confirms the time and date that your reconciliation report was sent and received by the CFO analyst.

  10. If CFO has not received the completed spreadsheet with supporting documentation, the Accounting Operation Manager will be contacted immediately for follow-up. Per Record Storage Document 12990 Item number 145, campuses should retain the TID report/spreadsheet and supporting documentation with the original signatures and dates for 18 months on site and retire the files to the Record Finance Center (RFC). Records can be destroyed 6 years 3 months after the FY in which the report was prepared.

  11. The CFO analyst will select three (3) random sample items and request the backup documentation for the selected items. The campuses have three (3) workdays to send the backup documentation back to the appropriate CFO analyst. The campus can fax the supporting backup documentation or send the information via overnight express, if the documentation is considered large.

Transfer of Accountability of Campus Directors

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

  2. IRM 3.0.167-17, Director's Accountability Transfer Checklist, provides a checklist to assist in the preparation of an action plan for a transfer of accountability, as well as the requirements of the accountability package for the outgoing and incoming accountable officers. The documentation must be maintained in the GAO site audit file.

General Ledger Account for Transfer of Accountability

  1. The following account is used for transfer of director's accountability.

Account 7500 Undeposited Collections
(Real Account, DR Normal Balance)
(TAS 20-0110)
  1. This asset account is used to record any monies received but not yet placed under accounting control, but not yet deposited. Monies are applied to this TAS, and later reclassified to the appropriate tax class.

  2. As a rule, all receipts are balanced with collection documents entered on deposit tickets, and recorded daily in receipt accounts. Only in unusual circumstances should Account 7500 be used to record undeposited receipts (e.g., a transfer of Campus Directors, an internal audit, or TIGTA examination).

  3. Entry to Account 7500 is via DBA window only.

General Guidelines for Transfer of Accountability

  1. These instructions provide the minimum requirements and general guidelines for Accounting.

    Note:

    The checklist, IRM 3.0.167-17, Director's Accountability Transfer Checklist is intended as a guideline and should be modified to each individual campus needs in the development of their action plan (part of the Accountability Package).

    Note:

    The action plan must contain the specific action taken and the date completed.

    1. Notify the Director, Submission Processing W&I and the appropriate field offices of any emergency situation or existing condition which could jeopardize an orderly transfer of accountability. Resolve the conditions hindering the transfer process as soon as possible.

    2. Notify the appropriate field offices and the Submission Processing Campus Receipt and Control function of the name and phone number of the Accounting Contact Person.

    3. Review Delegation of Authority Orders to ensure the proper title of the position is reflected.

    4. All Deposit Tickets and Debit Vouchers dated through the date of transfer must be input to RRACS. Use CIR as a tool to secure and resolve any outstanding Deposit Tickets and to journalize all outstanding Debit Vouchers to Account 1720.

    5. Include all collections received through the transfer date under the outgoing Director. Input to Account 7500 , memo copies of Deposit Tickets (DT) marked "Undeposited Collections" to cover tax payments received on the transfer date but not submitted to the depositary that day. Prepare a list and make copies of all undeposited collection deposit tickets.

    6. Reflect Undeposited Collections under the outgoing Director. Input these deposits to Account 7500 so that the General Ledger Trial Balance (secured at the end of the transfer date) reflects these items. Upon deposit of these collections, transfer to revenue receipts. The outgoing Director is responsible for these collections although they are deposited under the incoming Director.

      Note:

      Below are examples of specific timeframes.
      1. These undeposited collections deposit tickets must be journalized into the RRACS Account 7500 (Window 906) prior to or on the last day of the current director's accountability if the transfer occurs at any time during the month except the last day of the calendar month.
      Example 1: The last day of accountability for the outgoing director is February 19th and the first day of accountability for the incoming director is February 20th. The undeposited collections deposit tickets must be journalized into the RRACS system prior to or on February 19th.

      2. If the transfer occurs on the last day of the calendar month, the undeposited collections deposit tickets must be journalized into the RRACS system prior to the RRACS system closing for the month end, which is the second work day of the following month.
      Example 2: The last day of accountability for the outgoing director is February 28th and the first day of accountability for the incoming director is March 1st. RRACS closes for February accounting period on March 3rd. The undeposited collections deposit tickets must be journalized to Account 7500 on or before March 3rd, the closing day for RRACS for the February accounting period.
      3. If the Transfer of Accountability occurs on the last day of the calendar month, do not journalize any undeposited collections deposit tickets out of the RRACS Account 7500 (Window 907) to revenue receipts until the RRACS system opens for the new Accounting period. (Usually, RRACS opens for the new Accounting month on the third working day of the next month).
      Example 3: The last day of accountability for the outgoing director is February 28th and the first day of accountability for the incoming director is March 1st. RRACS closes for the February accounting period on March 3rd. Do not journalize the undeposited collections deposit tickets out of Account 7500 to revenue receipts until March 4th when RRACS opens for the new accounting period of March.
      4. If the transfer of accountability occurs at any time of the month other than the last day, then journalize the undeposited collections deposit tickets out of the RRACS Account 7500 (Window 907) to revenue receipts on the first working day following the transfer under the incoming director.
      Example 4: The last day of accountability for the outgoing director is February 19th and the first day of accountability for the incoming director is February 20th. Do not journalize the undeposited collections deposit tickets out of Account 7500 to revenue receipts until February 20th when the incoming director is accountable.

    7. Reconcile the totals of the District Office Inventory Detail Report and Loss/Shortage Report with the totals in the related general ledger accounts. Accelerate posting of all transactions for these accounts. Outstanding losses and shortages must be separated according to the Director accountable for them.

    8. Verify the District Office Inventory Detail Report and Loss/Shortage Report with the area field office and accounting records. Control and transmit copies of these reports to the appropriate offices with sufficient time for their review and concurrence with the listing as of the date of transfer. Copies of these listings must be signed by responsible officials and included in the accountability package maintained in the GAO Site Audit File.

    9. Change the Director's name on RRACS to the incoming Director’s name on the first day he/she becomes the accountable officer if the transfer takes place any time during the month except the last day. If the transfer takes place on the last day of the month, change the RRACS system on the 1st day RRACS is open for the following month.

      Example:

      The last day of accountability for the outgoing director is February 19th and the first day of accountability for the incoming director is February 20th. Change the RRACS system at beginning of day on February 20th.

      Example:

      The last day of accountability for the outgoing director is February 28th and the first day of accountability for the incoming director is March 1st. RRACS closes for the February accounting period, on the 2nd work day of the month, March 3rd. After month end reports have been completed, change the RRACS system to the new accounting period of March, and change the Director’s name.

    10. Dishonored Check debit vouchers must be added to Account 1710 daily. All debit vouchers that are added must be dated prior to or on the transfer date and must be journalized.

  2. Accounts 3200, 3300 and 7100 must be balanced before the end of the month of the date of transfer and included on Form 3997 even if it is not at the end of a quarter.

Unclaimed Funds
(Disposition of Requests for Claims from State Treasury Departments)

  1. Unclaimed or abandoned assets or funds are monies held by financial institutions, state or local governments, corporations, or other entities that were undeliverable to the intended person or agency.

  2. Unclaimed assets payable to the IRS are held by states, banks, or other financial institutions. Generally these are money orders, traveler's checks, and certified checks, made payable to IRS, that have not been negotiated. These are held in an account by the issuer. After a period of time, generally five or more years, states require the financial institution to turn the assets over to them. The state remains in control of the assets until claimed by the originator or passed on to the payee.

  3. Any communication received from a state treasury department or levy source that references unclaimed funds without PII information to which IRS may be entitled should be forwarded to:

    Mailing Address Private Delivery Service (POS) Mailing

    U.S. Department of the Treasury
    Program Resolution Branch
    DMSOC-West, Bureau of Fiscal Service
    Attn: Horace J. Phillips
    PO Box 149058
    1619 East Woodward St.
    Austin TX 78741–9058

    U,S, Department of the Treasury
    Bureau of Fiscal Service, DMSOC-West
    HJ Phillips, Lead Analyst, Unclaimed Assets
    Program Resolution Branch
    1619 East Woodward St.
    Austin TX 78741

Unidentified/Excess Collections Files

  1. Unidentified Remittance is when there is insufficient information to properly apply credits to a taxpayer’s account (e.g., when a taxpayer does not claim a payment and the correct taxpayer cannot be located), funds may be transferred to the Unidentified Remittance File (URF - Account 4620) or the Excess Collections File (XSF - Account 6800).

  2. Excess Collections added to the Excess Collection File (XSF) must have an IRS received date earlier than one calendar year before the current date. The only items allowed on the file with an IRS received date less than one year old must be document codes 48, 58 or 65 or true statute credits.

General Ledger Accounts for Unidentified Remittance Files and Excess Collections

  1. The following accounts are associated with Unidentified Revenue Receipts and Excess Collections.

Account 4620 Unidentified Remittances
(Real Account, CR Normal Balance)
  1. Recorded in this liability account are those receipts received by the Service without sufficient information to make application to the proper account. Receipts deposited to this account are considered revenue receipts in the income tax classification.

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

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

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

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

Account 6800 Excess Collections
(Nominal Account, CR Normal Balance)
  1. This account records payments equal to, or more than, one-year old from the IRS received date, that cannot be applied to a tax account, or year-old unapplied credits (direct payments) transferred from Unidentified.

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

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

  4. Refund or transfer of credits from Excess may not be made after the statute of limitations for refund has expired (claim for refund must have been filed three years from date return was filed or two years from date of payment, whichever date is later).

  5. This account is used to record unapplied payments from DOJ with IRS received dates of one year old or more. Payments dated less than one year should be applied to Account 4970, Unapplied Refund Reversals and thoroughly researched.

  6. Account 6800 is supported by subsidiary records established on XSF on IDRS and should be accompanied by complete documentation for a proper audit trail.

Account Series 9000 Ledger Closing
  1. This series of accounts provides an account for closing all nominal accounts at the end of the fiscal year. Also included in the series is an account to allow for the reopening of certain nominal account items which have been closed in prior fiscal years.

Account 9998 Reversals Revenue Clearance Accountability
(Nominal Account, DR/CR Normal Balance)
  1. This closing account is used to control items of excess collections, miscellaneous revenue collections, write-offs, and other nominal account items, when it becomes necessary to reopen one of these items after it has been cleared at the close of a fiscal year.

  2. Prior fiscal year (non-statute expired) excess collection credits may be applied directly from this account to the account indicated on the XSF 03 Register.

Account 9999 Revenue Clearance Accountability
(Real Account, DR/CR Normal Balance)
  1. This closing account is used only at the end of the fiscal-year accounting period to close the nominal accounts. All nominal accounts in debit-balance status at the close of the fiscal year will be closed by credit to that account and debit to this account. All nominal accounts in credit-balance status at the close of the fiscal year will be closed by debit to that account and credit to this account.

  2. Data input is updated by electronic transmission.

Applications From Unidentified Revenue Receipts

  1. RACS will receive the following unidentified listings and documents:

    1. URF03

    2. EOD16, Page 1-current fiscal year URF applies

    3. URF05

    4. Form 4830

    5. Other back-up documents, letters, and memos

  2. IDRS tape processing journalizes current and prior fiscal year URF applications from the EOD16. The Unidentified Apply window should be used in the event of a tape failure.

  3. Balance and process using normal procedures.

  4. MF Applications:

    1. Verify that URF05 balances with Page 1 and 2 of EOD16 in total amount applied.

    2. Add all tax class 2 items and amounts, and all tax class 4 items and amounts (on Page 1 of EOD16), so there is only one item and amount total for each tax class for reclassification purposes.

    3. Journalize from the URF05 for SCCF suspense accounts, and from Page 1 of EOD16 for reclassification purposes, and Page 2 of EOD16 for prior date amounts.

    4. Transcribe or stamp journal identification number on all listings for audit trail.

  5. NMF Applications:

    1. Form 4830 are generated for NMF applies.

    2. Number and prepare Form 813 (2-part).

    3. Make entries from URF03, NMF applications from the URF, and Form 813 for NMF suspense account.

    4. Recap any reclassification necessary prior to going to terminal.

    5. Transcribe or stamp journal identification number on listing URF03 for audit trail.

  6. Dishonored Checks on Unidentified Remittances:

    1. Unidentified will void these off the URF with "D" apply. On the same day, the Dishonored Check function will void off the DCF.

    2. Make entries from URF03 and DCF03 to NMF suspense account. Entries are not set up on the NMF SCCF.

    3. Reclassify: Decrease tax class 2 and increase tax class 1. No reclassification will be made on the DCF apply.

    4. Transcribe or stamp journal identification number on the URF/DCF listings and/or documents for audit trail.

  7. Applications can be made from other accounts such as Account 1510 (Other Receivables, Regular), 1720 (Dishonored checks, ADJ.), 1830 (NMF Account Receivable, Inactive), 6570 (Substantiated Credits Allowed), 6800 (Excess Collection) and 76XX (Losses and Shortages).

    1. Unidentified will void off the URF with a "V" apply.

    2. Make journal entries from URF03 to the applicable account.

    3. Ensure that all necessary back-up is received. Each of these accounts has their own requirements for back-up documentation. Supporting documentation for Account 6800 can be found in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Supporting documentation for Accounts 76XX can be found in IRM 3.0.167, Losses and Shortages. Supporting documentation for the other accounts can be found in IRM 3.17.63, Redesigned Revenue Accounting Control System, under the description of each individual account.

    4. Transcribe or stamp journal identification number on URF listing and on all documents.

    5. File and distribute documents accordingly.

Applications from Unidentified Miscellaneous Funds
(RRACS Window 404)

  1. RRACS entries will be made from the URF03 for total amount of applications.

  2. Using RRACS 404 Window, which can be found under Accounting Applications Menu under Unidentified Applied:

    1. The journalization will debit 4620 (Unidentified) and a credit to either 1510 (Other Rec), 1710 (DCF), 1720 (DCF Adj), 1830 (NMF Acct Rec), 4120 (BMF), 4220 (IMF), 4252 (IRAF), 4420 (NMF), 6570 (Sub Cr Allow) and 6800 (XSF), depending on the document.

    2. Reclassify, if necessary.

    3. Make journal entries to applicable funds from Form 4830 and/or appropriate source documents received from Unidentified.

    4. Any refund repayments going to taxpayers' accounts will be numbered and a Form 813 prepared. Entries to suspense accounts will be made from Form 813.

    5. If the item is a deposit fund application, it must have a Doc-Id.

    6. Unidentified items being applied to any of the miscellaneous funds must be reclassified.

  3. Transcribe or stamp journal identification number on listings and/or documents for audit trail.

  4. File and distribute documents accordingly.

Unidentified Deposit
(RRACS Window 210)

  1. The following documents are received with the unidentified deposit package:

    1. SF 215-A

    2. Unidentified Remittance File Transaction Register URF 03

  2. Verify the total of remittances added to URF balances with total of SF 215-A. Any discrepancies will be cleared with Deposit, to ensure necessary adjustments are made to URF.

  3. Journals will be made from SF 215-A on a RRACS 210 Window, which can be found under deposit, using total amount of deposit and each separate tax class amount. The journal will be a debit to 21XX and a credit to Account 4620. If tax class amount is other than individual income (tax class 2), reclassification will be necessary. Ensure Trace ID is input to RRACS.

  4. Amount and item entries to URF will be made from UR totals from the recap page of URF 03, with any necessary adjustments. This must balance with deposit ticket total.

  5. Transcribe or stamp journal identification number on listings and/or documents for audit trail.