3.17.79 Accounting Refund Transactions

Manual Transmittal

December 05, 2018

Purpose

(1) This transmits revised IRM 3.17.79, Accounting and Data Control, Accounting Refund Transactions.

Scope

This is a combination IRM. This IRM serves as a training guide and provides procedural and processing instructions to the Accounting Operations to approve, schedule, and certify refunds. This IRM also provides instructions for employees to schedule and certify generated refunds and related processing (e.g., posting refund cancellations, manual, journal, and other posting actions). Manual refunds are considered post-journal actions for the Redesigned Revenue Accounting Control System (RRACS).

Material Changes

(1) IPU 18U0034 issued 01-02-2017 IRM 3.17.79.3.5(2) table, updated Cincinnati contact information.

(2) IPU 18U0289 issued 02-13-2018 IRM 3.17.79.3.5(2) table, updated Cincinnati efax number.

(3) IPU 18U0289 issued 02-13-2018 IRM 3.17.79.1.7, updated BFS Forms and updated information throughout.

(4) IPU 18U0289 issued 02-13-2018 IRM 3.17.79.1.8, updated BFS Forms, added Signed Fiscal Service Non-Disclosure Agreement requirement, and updated information throughout.

(5) IPU 18U0289 issued 02-13-2018 IRM 3.17.79.1.9, updated BFS Forms, added Signed Fiscal Service Non-Disclosure Agreement requirement, and updated information throughout.

(6) IPU 18U0289 issued 02-13-2018 IRM 3.17.79.3.5(2), updated second sentence verbiage.

(7) IPU 18U0289 issued 02-13-2018 IRM 3.17.79.3.5(3), added a new second sentence.

(8) IPU 18U0373 issued 02-28-2018 IRM 3.17.79.3.2.2, inserted new section to reflect new Form 3753 and Form 5792 digital signature requirement.

(9) IPU 18U0409 issued 03-07-2018 IRM 3.17.79.3.2(7), note and IRM 3.17.79.3.2.2(5), updated Cincinnati phone number.

(10) IPU 18U0890 issued 05-31-2018 IRM 3.17.79.3.5(2) changed Austin’s efax number to an Organizational Mailbox.

(11) IPU 18U0890 issued 05-31-2018 IRM 3.17.79.3.2.2 updated the section to reflect required documents and naming convention.

(12) IPU 18U1154 issued 08-10-2018 IRM 3.17.79.3.2.2(9) table, updated Appeals contact information.

(13) IPU 18U1170 issued 08-15-2018 IRM 3.17.79.3.2 updated IRM references from 3.17.79.3.2.2 to 3.17.79.3.2.2 throughout.

(14) IPU 18U1170 issued 08-15-2018 IRM 3.17.79.3.2.2 updated the subsection to reflect that the backup documentation will not be uploaded onto the ATP SharePoint site.

(15) IPU 18U1170 issued 08-15-2018 IRM 3.17.79.3.2.2(6) updated the weekly reject report requirement to monthly and added requirement to upload to the ATP SharePoint site.

(16) IPU 18U1175 issued 8-17-2018 IRM 3.17.79.3.2.1(2) updated IRM reference from 3.17.79.3.2.1(10) to 3.17.79.3.2.1(9).

(17) IPU 18U1325 issued 10-12-2018 IRM 3.17.79.8.3 added new TAS symbols related to Photocopy Fee Manual Refund requests.

(18) IPU 18U1382 issued 11-5-2018 IRM 3.17.79.1.8 and 3.17.79.1.9 removed Fiscal Service Non-disclosure Agreement.

(19) IPU 18U1382 issued 11-5-2018 IRM 3.17.79.1.8(1) and 3.17.79.1.9(2) added new Fiscal Service training requirement for Certifying Officers and Data Entry Operators.

(20) 3.17.79.1.1.2 added new sub section Weekly ELMS reporting in January.

(21) 3.17.79.7.1.5 added new sub section Researching and Resolving Undeliverable Forms 1099.

(22) 3.17.79.1.8.1 added new sub section Certifying Officer (CO) Training.

(23) 3.17.79.1.8(6) updated procedures and added a due date.

(24) 3.17.79.3.2 added 2 new sections 3.17.79.3.2.1, Uploading Forms 3753 and Forms 5792 (PDF Copy) onto the Manual Refund Project SharePoint Site, 3.17.79.3.2.3, Manual Refund Digital Signature Requirement, and moved 3.17.79.3.2.1, rejecting Manual Refunds to 3.17.79.3.2.2.

(25) 3.17.79.3.2.1 revised section to reflect new Form 3753 and Form 5792 processing procedures.

(26) 3.17.79.3.2.2 replaced Deborah A. Castracane with Wanda Ramos as the SBSE Manual Refund Rejects, Designated BOD Point of Contact.

(27) 3.17.79.3.2.3 and 3.17.79.3.5.5 added new subsection Manual Refund Signature Requirement.

(28) 3.17.79.3.5 section has been re-written and updated with current processing information.

(29) 3.17.79.3.12.1 added new sub section with detailed Accounting Form 4466 Processing Instructions.

Effect on Other Documents

IRM 3.17.79 Accounting and Data Control, Accounting Refund Transactions dated November 30, 2017 (effective January 1, 2018) is superseded. The following "IRM Procedural Updates" issued from March 20, 2017 through November 13, 2017 have been incorporated into the revised IRM: 18U0034, 18U0289, 18U0373, 18U0409, 18U0890, 18U1154, 18U1170, 18U1175, 18U1325, and 18U1382.

Audience

Employees primarily in the Submission Processing, Accounting Operations for pre-journal (or Master File generated refunds, transaction code (TC) 846) and post-journal refund activities (also known as TC 840). All managers and employees involved in processing and/or initiating manual refunds are required to have annual manual refund training (as recommended by the Government Accountability Office).

Effective Date

(01-01-2019)

Related Resources

The procedural guidelines contained in this IRM 3.17.79, Submission Processing, Accounting and Data Control, Accounting Refund Transactions, should be used in conjunction with IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System, IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, and all other associated program IRM's. Please ensure your employees understand the importance of adhering to the policy and procedures required by the IRM. These procedures are intended to ensure fair and consistent treatment of taxpayers.

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

Program Scope and Objectives

  1. Purpose: This IRM provides instructions to be followed by the Submission Processing (SP) manual refund functions when processing manual refund requests from all Business Operating Divisions (BOD).

  2. Audience: All employees within the Accounting Operation areas at each of the Five SP campuses who work manual refund requests.

  3. Policy Owner: Director of Submission Processing.

  4. Program Owner: Wage and Investment (W&I) Division, SP is responsible for the manual refund policy.

  5. Primary Stakeholders: The primary stakeholders are organizations with whom SP collaborates (e.g., Accounts Management (AM), Taxpayer Advocate Service (TAS), Large Business and International (LB&I), etc.).

  6. Program Goals: To provide manual refund customers (all BODs and taxpayers) high quality and expeditious manual refund processing. Preliminary Manual Refund guidance can be found in IRM 21.4.4, Account Resolution - Manual Refunds.

  7. Contact Information: To recommend changes or make any other suggestions to this IRM section, send an E-mail to &W&I CAS:SP:ATP:AS on the global address directory or submit a feedback inquiry through SERP.

  8. IRM Deviation Statement: Service Center Directors, Headquarter Branch Chiefs, and Headquarter Analysts do not have the authority to approve deviations from IRM procedures. Any request for an exception or deviation to an IRM procedure must be elevated through appropriate channels for executive approval. This will ensure other functional areas are not adversely affected by the change, and it does not result in unfair treatment of taxpayers. See IRM 1.11.2, Internal Management Documents System, Internal Revenue Manual (IRM) Process. Request for an IRM deviation must be submitted in writing and signed by the Field Director, following instructions in IRM 1.11.2.2.4(3). Any disclosure issues will be coordinated by the Program Owner. No deviations can begin until reviewed by the Program owner and approved at the Executive level.

Overview

  1. This IRM describes procedures used by Submission Processing Center, Accounting Operations, to process refund approval documentation, prepare refund schedules and issue related information documents.

Training
  1. Annually Accounting Operation employees involved in initiating, reviewing, processing, signing, certifying and monitoring the status of manual refunds must complete the most recent manual refund training courses available via ELMS as identified below:

    • Course 30914, Manual Refunds

      Note:

      Course 30914a can be take instead of Course 30914, if Course 30914 was completed by same employee in the previous year, unless there is a change to the course in the current year or there is a gap between years where the same employee did not take Course 30914 or Course 30914a.

    • Course 54710 Processing Manual Refund Requests

      Note:

      All employees that process manual refunds are required to complete the most recent training available. It is suggested Course 54710 Processing Manual Refund Requests be taken in a classroom setting and facilitated to allow for a question and answer period at the end of each lesson.

      Note:

      Employees performing workload inventory control ONLY for manual refunds are not required to take this annual training.

    • Course 42841, Monitoring Manual Refunds

      Note:

      Course 42841 must be taken annually if the employee monitors manual refunds.

      Note:

      Employees performing workload inventory control for manual refunds ONLY are not required to take this annual training.

  2. All training must be completed annually within the period of January 1 to February 1 or prior to being assigned Integrated Data Retrieval System (IDRS) command code(s) RFUND, REFAP or a manual refund profile restriction (RSTRK (M)).

  3. Timely completion of all training is required.

  4. Documentation of all training must be maintained, available for review by internal and external customers and recorded in ELMS.

Weekly Enterprise Learning Management System (ELMS) Reporting in January
  1. During January of each year, manual refund managers are required to provide a weekly ELMS report reflecting the status of completion of the required Manual Refund Training, stated in IRM 3.17.79.1.1.1, Training.

  2. The report will be:

    1. printed in Portable Document Format (PDF),

    2. printed on the first, second, third, and fourth Monday of the month of January, and

    3. E-mailed to the HQ Manual Refund Analyst Ronnie.Maldonado@irs.gov with a Carbon Copy to Cathy.R.Andrews@irs.gov.

  3. Outlook reminders must be set up by the manual refund manager:

    1. weekly, each Monday, during the month of January,

    2. for the manager of the manual refund function, and

    3. for each manual refund employee.

Refund Types and Methods - Treasury Disbursing, Bureau of the Fiscal Service

  1. ELECTRONIC FUNDS TRANSFER (EFT) identifies delivery systems used to transfer payment or funds electronically. These systems are a faster, more secure way of transferring funds in contrast to issuing paper checks.

    1. The Kansas City, Bureau of the Fiscal Service (BFS) formerly known as Financial Management Service (FMS) and the Federal Reserve Bank (FRB), are directly involved in two types of EFT services: Automated Clearing House (ACH), and Wire Transfers (FEDWIRE).

  2. AUTOMATED CLEARING HOUSE (ACH) REFUNDS FOR RETURNS FILED ELECTRONICALLY transfers funds electronically for participating depository financial institutions.

    1. ACH primarily functions through the FRB. Rules, procedures, and programs were developed by the Regional ACH Association, National Automated Clearing House Association (NACHA).

    2. ACH payment files received by the BFS on any business day allows for payee accounts to be credited the next business day. ACH payment processing can accept payment amounts up to $99 million.

  3. WIRE TRANSFER (FEDWIRE) is one of the major wire transfer systems directly connected to the FRB.

    1. Known as the Federal Reserve Communications Systems (FRCS), wire transfers are executed through the FEDWIRE network.

    2. The BFS uses FEDWIRE extensively to disburse and collect funds. BFS uses the Treasury FEDLINE to transmit funds through the FEDWIRE System.

  4. THE TREASURY FEDLINE PAYMENT SYSTEM (FEDLINE) processes requests for wire transfer on refunds of $1 million or more. Requests are received from the taxpayer on Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, Form 8302 cites the restrictions and conditions which may result in a refund by check. The FEDLINE process requires supporting documentation and is considered on a case by case basis only. (See IRM 3.17.79.3.10.1, Form 8302, Electronic Deposit of Tax Refund of $1 Million or More.)

    1. Treasury FEDLINE is an EFT system that has a direct line to the FRCS through the Federal Reserve Bank of New York (FRBNY).

    2. Wire transfer payment schedules are routed to the Kansas City, BFS.

    3. Payment amounts are limited to $999,999,999.99 million and are credited to payee accounts on the same business day.

  5. TREASURY CHECKS

    1. Treasury checks are drawn on the U.S. Government and issued from a refund appropriation or other Treasury account symbol on a Secured Payment System (SPS) Refund Schedule submitted to the Kansas City, BFS. Treasury tax refund and other check payments are certified through the Kansas City, BFS, SPS. The SPS screen print of the SPS Refund Schedule serves as supporting documentation for check-issue media submitted to the Kansas City, BFS. The SPS Refund schedule is created and matched to tape reel number or other transmission record, check volume, amount, and date certified. Individual payment detail data for check inscription, are included on the file. All refund schedules are certified by a designated "Authorized Certifying Officer" of the agency.

    2. Form 3753, Manual Refund Posting Vouchers, are processed through the Internal Revenue Service (IRS) Integrated Submission and Remittance Processing system (ISRP) using Document Code 45 in the document locator number (DLN) for posting to the Master File. The SPS Refund Schedule is sent to the Kansas City, BFS, for disbursement of the refund.

    3. Forms 5792, Request for IDRS Generated Refund (IGR), are input via Integrated Data Retrieval System (IDRS) (CC RFUNDR) and transmitted to the Kansas City, BFS. Files are sent simultaneously to the Enterprise Computing Center for posting the TC 840 to the Master File.

    4. Miscellaneous refund payments such as Photocopy Fee (Form 4506) reimbursements are certified by the Internal Revenue Service (IRS) and sent to the Kansas City, BFS, to issue a check. Miscellaneous refund payments are issued from General Ledger Accounts and are not reflected on the Master File.

    Note:

    A request for a manual refund to be deposited to a pre-paid debit card is ONLY acceptable for a TAS Hardship.

  6. Secure Payment System (SPS) is an application that provides a mechanism by which government agencies can create payment schedules in a secure fashion, and with a strictly enforced separation of duties. This application allows personnel at Federal Program Agency (FPA) locations to submit schedules to the Kansas City, BFS over a browser/web interface. Two different user-types are required and responsible for an FPA to submit schedules to SPS. First, a Data Entry Operator (DEO) creates a schedule and submits the schedule for certification. Next a Certifying Officer (CO) examines the schedule and upon verification, certifies the schedule which results in the schedule being submitted to Kansas City, BFS. See IRM 3.17.79.6.4, Bureau of the Fiscal Service Secure Payment System.

Related IRMs

  1. This IRM chapter includes instructions for Submission Processing, Accounting Operation, accounting and refund approval. Related processing information is located in the following IRMs (this list is not all inclusive):

    1. IRM 1.11.3, Policy Statements

    2. IRM 2.4.19, Command Code REQ77, FRM77 and FRM7A

    3. IRM 2.4.20, IDRS Command Code RFUND and REFAP

    4. IRM 3.0.167, Losses and Shortages

    5. IRM 3.11.10, Revenue Receipts

    6. IRM 3.13.62, Media Transport and Control

    7. IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF)

    8. IRM 3.17.20, The Refund Intercept Program

    9. IRM 3.17.30, SC Data Controls

    10. IRM 3.17.63, Redesigned Revenue Accounting Control System

    11. IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

    12. IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations

    13. IRM 3.17.243, Miscellaneous Accounting

    14. IRM 3.24.7, Delinquent Accounts

    15. IRM 13.1, Taxpayer Advocate Case Procedures

    16. IRM 11.3, Disclosure of Official Information

    17. IRM 20.1, Penalty Handbook

    18. IRM 20.2, Interest

    19. IRM 21.1, Accounts Management and Compliance Services Operations

    20. IRM 21.2, Systems and Research Programs

    21. IRM 21.3, Taxpayer Contacts

    22. IRM 21.4.1, Refund Inquiries

    23. IRM 21.4.4, Manual Refunds

    24. IRM 21.4.5, Erroneous Refunds

    25. IRM 21.4.6, Refund Offset

    26. IRM 21.5, Account Resolution

    27. IRM 21.6, Individual Tax Returns

    28. IRM 21.7, Business Tax Return and Non-Master File Accounts

    29. IRM 21.10, Quality Assurance

    30. IRM 25.6, Statute of Limitations

  2. The Internal Revenue Manual Index, Document 10988, Catalog Number 27371W, provides the revision date, catalog number and IRM references.

Glossary of Terms

  1. Abatement: A reduction of an assessment of tax, penalty or interest.

  2. Agency Location Code (ALC): The ALC is a number assigned by Treasury's Bureau of the Fiscal Service designating the agency identification to account for government payments. The ALC identifies the issuing agency and allows recordation for Treasury of the return of credits and debits for accounting transactions. For example:

    Submission Processing Center (SPC) Agency Location Code (ALC)
    Austin 20091800
    Cincinnati 20091700
    Fresno 20098900
    Kansas City 20090900
    Ogden 20092900
  3. Assessment: The recordation of a tax liability determined by either the Service or the taxpayer.

  4. Automated Non-Master File (ANMF): Subsidiary records of taxpayer accounts established and maintained at the Cincinnati Submission Processing Center.

  5. Automated Non-Master File (ANMF) Transcript: A NMF record of all transactions related to a tax liability, maintained at the Cincinnati Submission Processing Center.

  6. Customer Account Data Engine (CADE): Beginning in January 2012 with CADE 2 deployment, IMF processes and posts individual taxpayer submissions daily. Only accounts and transactions that have met specific criteria will process and post daily. The remaining accounts and transactions will re-sequence until the end of the cycle and reflect as a weekly account.

    • With the implementation of CADE 2, the cycle cut off for the week’s processing is Wednesday night for all Master Files. This allows all Master Files (IMF-Individual Master File, BMF-Business Master File, etc.) to be processed by IDRS (Individual Data Retrieval System) weekend analysis one week earlier.

    • IMF Daily posted transactions will be updated and available for viewing on CFOL (Corporate Files Online) by 6 a.m. the next business day after IMF processing and available on IDRS by 6 a.m. the following business day providing posted information sooner.

  7. Checks:

    1. Recertification - Effective October 26, 1986, the Department of the Treasury (BFS) re-delegated, to administrative agencies full responsibility for certifying replacement payments to payees who claim non-receipt, lost, stolen, mutilated or destroyed checks. This procedure is known as Recertification. IRS authorizes the re-issuance of a check under Recertification.

    2. Settlement Check - A check issued by BFS Check Claims Branch prior to October 26, 1986, and more recently in 2002 and 2003 when non-receipt claims were determined to be forged. Settlement checks are issued by BFS from the Check Forgery Insurance Fund to replace an original check cashed by an individual other than the taxpayer, the payee. The check number and symbol of the settlement check are different from those on the original check. The recent settlement checks overlay the original check issue symbol and serial requiring in-depth research by BFS for resolving cases.

    3. Substitute Check - A check issued by Check Claims Group (CCG) to replace an original check still outstanding. Substitute checks were also referred to as duplicate checks and were issued from the Washington RFC. The substitute check has the same check number and symbol of the original. Substitute checks are not issued under Recertification.

    4. Recertified Check - A check certified for re-issuance by IRS, after October 26, 1986, to replace an original check still outstanding. The result of a non-receipt claim submitted by tape input or Form 1184, Unavailable Check Cancellation.

    5. Altered Check - A check that is changed (defaced) before cashing (for example, the refund amount printed on the check is changed).

    6. Unavailable Check Cancellation Credit - Credit returned to the ALC from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9."

    7. Available Check Cancellation Credit (ACC)- Credit(s) returned to the Service from an intercepted refund check (Reason for Return Code "1" ), undeliverable refund check (Reason for Return Code "2" ) or other reasons not identified above (Reason for Return Code "3" ).

    8. Unavailable Check Cancellation (UCC)- credits are returned to the Service via Form 1098, cancellations from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9"

  8. Erroneous refunds: Category A1, A2, B and C are assessable refunds under the Internal Revenue Code (IRC). These erroneous refunds require recalculation of the tax liability, including refundable credits and non-refundable credits. Category A1 and A2 refunds are sent to Examination for deficiency processing. Category B and C can be assessed by any IRS function. Unassessed erroneous refunds (formerly Non-Rebate): are unassessable refunds that cannot be recovered by tax assessment procedures under the IRC. These refunds are currently categorized as "Category D" erroneous refunds. These funds can only be recovered by limited actions performed by Submission Processing. See IRM 21.4.5, Erroneous Refunds, for erroneous refund types, categories and recovery processing procedures.

  9. Bureau of the Fiscal Service (BFS): BFS is within the Department of the Treasury. The Bureau of the Fiscal Service (BFS) issue and process claims on most U.S. Government checks, including all IRS tax refund checks. Because of the role of BFS in issuing and cancelling refund checks, most Refund Activity processing involves a great deal of interaction with BFS. Accounting documentation via Form 1098 and Form 1081 for credits and debits are transmitted by BFS to ECC Submission Processing Centers download Accounting disbursement and cancellation credits and debit documentation via the ECC, Control-D.

  10. Financial Processing Division: formerly Adjudication Division, a division of BFS, processes non-receipt claims (from Form 3911 and CC CHKCL) FMS Form 1133, to determine if the taxpayer benefited from the proceeds of the refund. If the taxpayer did not benefit from the refund, BFS authorizes IRS to settle with the taxpayer (issue another refund). Administrative action is taken by BFS through the banking system to recover funds from the bank that are paid over forged endorsements.

  11. Heads of Office: the management official who presides over a particular Business Operating Division; e.g., Area Director, Field Director, Commissioner, Assistant Commissioner, or other functional equivalents at the Area, National levels. Only those individuals would be accountable for any necessary corrective actions when errors occur in processing cases. Field offices will provide authorized signatures to appropriate Submission Processing Center, Manual Refund function.

  12. Integrated Data Retrieval System (IDRS): A computer system with the capability to instantaneously retrieve or update stored information in harmony with the Master File of taxpayer accounts. This system is aimed at a quick resolution of problems and queries concerning current taxpayer accounts. It furnishes information immediately for IRS personnel in their work assignments.

  13. Integrated Submission and Remittance Processing (ISRP): is used for inputting document transactions and remittances.

  14. Journalization: The process of debiting and crediting General Ledger accounts. Every tax transaction involving money must be journalized to maintain account control.

  15. Julian Date: A system of numbering the days of the year from 001 through 365 (or 366). The 6th, 7th, and 8th digits of the DLN are the Julian date.

  16. Limited Payability (LP): On October 1, 1989, the Competitive Equality Banking Act of 1987, changed many aspects of the law relating to banking and refund processing. The portions of the law affecting refunds are commonly referred to as "Limited Payability" . There are three primary ways the Limited Payability law affect IRS tax refunds:

    1. U.S. Treasury checks (including all IRS tax refund checks) are negotiable for one year from the date of issuance or one year from the effective date of the new law, for those checks issued on or after October 1, 1989. BFS returns LP credits to the agency that authorized issuance of the check and is similar to returning credits on check claims when the check is outstanding (Status 32). No credits are returned on canceled checks issued before October 1, 1989.

    2. Claims "on account of a Treasury check" must be presented to IRS for tax refund checks within one year from the date of issuance (or one year from the effective date of the new law) for checks issued before the law took effect. Different procedures apply to these claims. BFS involvement is much more limited than claims made within 1 year.

      Note:

      This provision of the law will not limit the time a taxpayer has to make a non-receipt claim. Because the law does not affect the "underlying obligation" for which a check is issued (for IRS, this obligation is the obligation to refund an overpayment of tax), IRS will process claims made after the one year period.

    3. Reclamation actions by BFS through the banking system to recover funds on forged checks are limited to one year (or one and a half years if a timely claim, as described in (2), above, is filed). When BFS cannot recover funds, a credit will not be returned to IRS, even though settlement was authorized. Procedures for handling this situation are included in IRM 21.4.4, Refund Inquiries.

    4. Limited Payability Cancellation (LPC) Credits are transmitted monthly, provided that an LPC occurred. Credits originate from BFS to ECC. Cancellation data generates a TC 740 to the Master File via Form 1081 TRACS with block and serial number 66666 and will set an "S" Freeze on the account.

    5. Reclamation (REC) Credits are transmitted monthly, provided an UCC occurred. Credits originate from BFS to ECC. ECC generates a TC 841 to the Master File via Form 1081 TRACS with block and serial 88000 and are the result of a non-receipt claim which secured recovery of funds through the banking system on a forged check. When BFS cannot recover funds, no credit will be returned to IRS, even though BFS authorizes settlement with the taxpayer.

  17. Master File (MF): Subsidiary records of taxpayer accounts established and maintained on magnetic tape at the ECC.

  18. Offer-In-Compromise (OIC): A proposal for settlement of a liability for tax or specific penalties for an amount less than previously assessed (or unassessed).

  19. Payment Over Cancellation (POC): This situation occurs when a second check is issued after an Unavailable Check Cancellation Credit (Form 1185) is returned to IRS via the Form 1081 TRACS Cancellations. This is a result of a non-receipt claim when both the original and second checks are subsequently cashed, creating a debit on the account.

  20. Posting Vouchers: Various procedures require the Deposit Activity to prepare a source document (Posting Voucher), containing the required information for input.

  21. Pre-search: Searching for required data not present on the source document, via IDRS and Automated Collection System (ACS) terminals, prior to the actual deposit of the remittance.

  22. Qualifying Intermediary: Term used for foreign banks to participate in Electronic Federal Tax Payment System (EFTPS).

  23. Reclamation Credit (REC): Credit is returned to the Service following a non-receipt claim ( FMS Form 1133) filed with BFS.

    1. Funds are recovered by BFS from the financial institution when a Treasury check is paid over a forged endorsement.

    2. Credits are returned to IRS Master File via the Treasury Receivable and Accounting Collection System (TRACS) Form 1081 process.

  24. Supporting Documentation: The document(s) that support the refund credit. These documents are viewed by auditors to justify the disbursement of funds.

  25. For additional terms, see Glossary of Terms in Exhibit 3.17.79-1.

Taxpayer Information, Returns and Refund Documents

  1. Service officials and managers must communicate security standards contained in IRM 1.4.6, Managers Security Handbook, to employees and establish methods to enforce the standards. Employees must take precautions in providing security and privacy for the documents, information, and property which they handle in performing official duties.

    1. Any E-mail containing PII must be encrypted (secured). For more information on E-mail and privacy (See IRM 10.5.1.6.2, Encryption).

    2. All shipment of tax returns and return information between Submission Processing, Accounts Management, Compliance Services Operations, the IRS National Office, IRS field areas and territories, the Enterprise Computing Centers, Bureau of the Fiscal Service or other government agencies and jurisdictions are documented, accomplished and accounted for as required by IRM 1.4.6, Managers Security Handbook.

  2. All IRS employees must comply with ethical standards when following these procedures to prevent fraud, abuse and waste.

  3. Employees must protect the privacy of all IRS sensitive information, including PII and tax information. Follow the IRS Privacy Principles, found in IRM 10.5.1.3.2, IRS Privacy Principles.

Sequence of Refund Records

  1. The Enterprise Computing Center (ECC) generates Individual Master File (IMF) and Business Master File (BMF) refund records in ZIP Code sequence within the two-digit center code. Direct deposits are in Bank Account/Routing Transit Number (RTN)/Service Center order.

  2. The IDRS Generated Refund (IGR) records are in account number, employer identification number (EIN) or social security number (SSN) sequence.

Authorized Signatures and Delegations of Authority

  1. Do not allow unauthorized persons access to certain posting and sensitive documents requiring authorized signatures between signing and transmission of the SPS Refund Schedule to the BFS.

    1. Submission Processing Director (and/or other supervisory levels) will ensure the integrity of signatures by establishing procedures for signing Form 3753, Manual Refund Posting Voucher and/or Form 5792 and appointments/terminations of designated Certifying Officers. See IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds and IRM 3.17.79.1.8, Designating Certifying Officers (CO) and CO Review.

  2. The Submission Processing Director may delegate authority to review and approve a Form 3753, Manual Refund Posting Voucher and/or Form 5792 refund request. The approving official cannot be the Certifying Officer. The Government Accountability Office (GAO) determined this is a direct conflict of separation of duties.

    1. Employees authorized to approve a manual refund request cannot also have authorization to initiate a manual refund request and/or adjust taxpayer accounts.

    2. A manual refund authorized official or Certifying Officer, must not have the following sensitive command codes in their IDRS command code profiles: ADC24, ADC34, ADC48, ADD24, ADD48, BNCHG, INCHG, ADJ54, DRT24, FRM34, DRT48, AMCLS, URAPL, URREF, XSAPL, XSREF, RFUND, and REFAP, this list is not all-inclusive. The Taxpayer Identification Number (TIN) of the authorizing official must be provided to the Accounting Operation, Manual Refund function to verify the above information. The TIN information must be provided even when the authorized official does not have IDRS access.

    3. The internal control separation of duties was established by GAO to protect the integrity of government funds. This automated security review, Automated Command Code Access Control (ACCAC) reduces the potential for financial mismanagement. The ACCAC database is maintained by Information Technology (IT), Cyber Security Division.

    4. The Accounting Operation, Unit Security Representatives (USR) will perform IDRS actions per the IRM 10.8.34, IDRS Security Controls. See IRM 10.8.34, Exhibit-5, Sensitive Command Code Combinations. ACCAC provides ability to automatically activate, deactivate or bypass Command Code profiles and to limit access for IDRS security profiles.

    5. The ACCAC was developed by IDRS Security with the affected business operating divisions to initiate a standard procedure to ensure that restricted combination sensitive command codes are not in the employee profiles.

    6. The requirements for management officials to provide personal information to the Unit Security Representative (USR) is located in IRM 10.8.34, IDRS Security Controls. The ACCAC system is designed to update the Restricted Command Code Access Lists for each Center. Employees must protect the integrity of all personal information. The Unit Security Representatives are designated to key enter and remove restricted command code access data into and from the database. Standard information and IDRS Security review actions by Unit Security Representatives are found in IRM 10.8.34, Exhibit-5, Sensitive Command Code Combinations.

      Note:

      Manual Refund Authorizers and Certifying Officers must provide TIN information to allow the input of the Restricted Command Code Access List (RSTRK(M). The access list will update the Manual Refund authorizer/Certifying Officer IDRS security profile, if they have IDRS or not.

    7. The Submission Processing, Accounting Operation, Manual Refund function continues to maintain and secure original signatures of officials authorized to approve manual refund requests (Form 14031). See IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds

  3. The Department of the Treasury, Bureau of the Fiscal Service issues procedures for delegations of authority (Transmittal Letter Part 4A- Chapter 3000, Requirements for Scheduling Payments Disbursed by BFS). An FS Form 2958DO, Delegation of Authority and a PD F 5489 E Fiscal Service PKI Support Nomination must be completed to establish the name and title of the individual that is the Delegated Head of Office of the Federal Agency and to obtain signature samples from that individual.

    1. Each SP site should assign at least one alternate (Back-up) that will sign documents for access to the Secure Payment System (SPS) in the absence of the Authorized Delegated Official.

    2. Delegated Heads of Office and alternate (Back-up) delegated Heads of Office must have a current FS Form 2958DO, Delegation of Authority on file with the BFS, Administrative Operations (AO), Administrative Operations Office (AOO), and the applicable Submission Processing Center.

    3. A BFS form: PD F 5489 E Fiscal Service PKI Support Nomination must also be completed and submitted with the FS Form 2958DO, Delegation of Authority Original Delegation and Name Change request. To prepare the Delegation of Authority package for submission refer to the "If - Then" chart below:

      Note:

      Ensure the memos and forms below are submitted timely to allow Headquarter and Financial Management Policy to prepare package for signature and the Bureau of the Fiscal Service to process paperwork

      IF..... THEN.....
      Personnel changes occur -
      Adding Director or Alternate (Backup)

      Prepare Delegation of Authority as follows:
      • SP, Director Memorandum (Microsoft WORD Document)

      • Form 13839-A, Note to Reviewer

      • Form 147074, Action Routing Sheet


      E-mail to Ronnie.Maldonado@irs.gov and Cathy.R.Andrews@irs.gov

      Complete the following:
      • FS Form 2958DO, Delegation of Authority

      • PD F 5489 E, Fiscal Service PKI Support Nomination

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Ave NW, (Mail Stop 6167)
      Washington, DC 20224-0001
      Personnel changes occur -
      Removing Director or Alternate (Backup)

      Prepare Revocation as follows:
      • SP, Director Memorandum (Microsoft Word Document)

      • Form 13839-A, Note to Reviewer

      • Form 147074, Action Routing Sheet


      E-mail to Ronnie.Maldonado@irs.gov and Cathy.R.Andrews@irs.gov

      Complete the following:
      • FS Form 2958DO, Delegation of Authority

      • Form 3210, Document Transmittal


      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Avenue NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Name change occurs -
      Director or Alternate (Backup)

      Prepare Name Change as follows:
      • SP, Director Memorandum (Name Change)(Microsoft WORD Document)

      • Form 13839-A, Note to Reviewer

      • Form 147074, Action Routing Sheet


      E-mail to Ronnie.Maldonado@irs.gov and Cathy.R.Andrews@irs.gov

      Complete the following:
      • FS Form 2958DO, Delegation of Authority (Delegation Current Name)

      • FS Form 2958DO, Delegation of Authority (Revocation Former Name)

      • PD F 5489 E Fiscal Service PKI Support Nomination (Current Name)

        Note:

        Notate "Name Change" on the top of all forms listed above

      • Form 3210, document Transmittal


      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Delegation is due to expire -
      Director or Alternate (Backup)

      Prepare Re-Delegation as follows:
      • SP, Director Memorandum (Microsoft WORD Document)

      • Form 13839-A Note to Reviewer

      • Form 14074, Action Routing Sheet


      E-mail to Ronnie.Maldonado@irs.gov and Cathy.R.Andrews@irs.gov

      Complete the following:
      • FS Form 2958DO, Delegation of Authority

      • Form 3210, Document Transmittal


      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFP:FM:P
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001

      Note:

      "Sample" forms and memorandums, noted in the table above can be obtained in the SP, ATP, SharePoint site at the following link: https://organization.ds.irsnet.gov/sites/SPATPBranch/Manual%20Refund%20Misc%20Documents/Forms/AllItems.aspx under the "FMS Forms and Memorandums" link. The ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. General access permissions request must include employee name with corresponding SEID. General access permissions must be requested by a management official and submitted by E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to Sarah.A.Stanton@irs.gov

  4. Preparing FS Form 2958DO, Delegation of Authority

    1. Forms MUST be completed in Non-Erasable black ink and bear the Delegated Official original signature.

      Note:

      The FS Form 2958DO, Delegation of Authority will be rejected if submitted with facsimile signatures, evidence of corrections, erasures or alterations.

    2. Section I - "Delegation and Re-Delegation" Complete the following: check box - Designate Certifying Officers, check box - Other (specify) DEO, ITRA, check both Authority boxes "May" and complete Comments: FPAID - XXXX, ALC - 2009XXXX. and ensure one of the following applicable boxes is checked:
      "Original Delegation"
      "Re-Delegation"
      "Revocation"

    3. Section II - "Designee" Complete the following: Full Legal Name (First, Middle Initial, Last), Title, Agency (Department of the Treasury), Bureau (Internal Revenue Service), Division (Site location, Submission Processing), Head of Agency check box (Always check "NO" ), Effective Date, Phone and E-mail.

    4. Section III - "Signature Samples of Designee " (Designee must sign within all 4 boxes in BLACK INK).

    5. Section IV - "Delegator Signature" The Delegator in this section is: William H. Maglin II, Associate Chief Financial Officer for Financial Management. Complete the information in this section as follows:
      Legal Name: William H. Maglin II
      Title: Associate Chief Financial Officer for Financial Management
      Agency: Department of the Treasury
      Bureau: Internal Revenue Service
      Division: Chief Financial Officer
      Phone: 202-803-9730
      E-mail: william.h.maglin@irs.gov

    6. Section V - "Return Address of Delegator" Complete with the following address:
      Internal Revenue Service OS:CFO:FM
      1111 Constitution Avenue NW (Mail Stop 6167)
      Washington, DC 20224-0001

  5. Preparing PD F 5489 E Fiscal Service PKI Support Nomination for the Fiscal Sponsoring Authority FSA).

    1. Block 1 - Check the Fiscal Sponsoring Authority box

    2. Block 2 - Complete using the same name/information as Section II on the associated FS Form 2958DO, Delegation of Authority. The "Business Systems Requiring Nomination" is: Secured Payment System (SPS)

    3. Block 3 - Check the Fiscal Sponsoring Authority box and complete the information in this block as follows:
      Legal Name: William H. Maglin II
      Agency/Bureau: Department of the Treasury/Internal Revenue Service
      Work E-mail: william.h.maglin@irs.gov
      Address: Internal Revenue Service OS:CFO:FM
      1111 Constitution Avenue, NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Phone: 202-803-9730

    4. Block 4 - Bureau Fiscal Services Use Only

  6. AOO will associate the SP Director memorandum and the Delegation of Authority package and forward to the BFS. The BFS will validate or revoke and return the Delegation of Authority package to the AOO. AOO office will route to the applicable Submission Processing Center. Allow four weeks for AOO to return the validation or revocation copy to the SP site and if not received within this period contact Cynthia A. Carver at 202-803-9610 or by E-mail at Cynthia.A.Carver@irs.gov. The validated FS Form 2958DO, Delegation of Authority must be maintained in a file accessible for review by internal and external customers. The BFS validation is effective for a 2-year period and the validation label must be present on the back of the FS Form 2958DO, Delegation of Authority when received from AOO.

    Note:

    Delegations of Authority Files. Record copies documenting the delegations of authority and all related documents must be maintained in a file and accessible for review by internal and external stakeholders and destroyed 7 years after end of processing year in which delegation of authority was terminated.

  7. A monthly review of the FS Form 2958DO, Delegation of Authority file must be performed, documented, maintained for a period of 90 days and include the following:

    Note:

    The review should be performed by other than the TRA maintaining the file. (Internal Control Separation of Duties)

    • BFS validation is present

    • BFS validation is current

    • Signed Delegation of Authority memo is present for the current two-year period

Designating Certifying Officers (CO) and CO Review

  1. 31 USC Section 3528 states a Certifying Officer is held responsible for the existence and accuracy of the facts stated on the refund voucher, in the supporting documents, and for the legality of the proposed payments, under the Refund Appropriation fund involved. From January 1 and by February 1 of each year or upon designation, the Certifying Officers are required to annually review the Certifying Officer Users’ Guide and complete the ELMS training courses listed in IRM 3.17.79.1.1, Training and IRM 3.17.79.1.8.1, Certifying Officer (CO) Training prior to performing their duties. The Certifying Officer User’s guide can be obtained from the SPATP SharePoint site at: https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx within the “Certifying Officer” sub-folder of the “Manual Refund Misc. Documents” folder.

    Certifying Officers will take whatever action they deem appropriate to ensure the vouchers they certify for payment are correct and proper. Periodically, the EOD26 listing may not be run because of mid-year programming changes etc. This may delay IDRS refunds. If this occurs the Certifying Officer should refer to IRC § 6611(b) to determine if further steps are required to include any additional interest due the taxpayer in the amount to be refunded.

    1. Automated Federal Agency enrollment requires Certifying Officers to file and maintain a valid FS Form 210CO, Designation of Certifying Officer, Signature/Designation for the Certifying Officer signed by their Delegating Official who must have a current FS Form 2958DO, Delegation of Authority on file. See IRM 1.2.40.34 , Delegation Order 1-41, Designation of Officers and Employees as Authorized Certifying Officers. The purpose of FS Form 210CO, Designation of Certifying Officer is to designate a certifying officer that will sign to certify refund authorizations.

    2. Submission Processing Center Directors designate Certifying Officers to certify manual refunds. BFS recommends designated Certifying Officers are management level or equivalent within the Submission Processing, Accounting operations. The supporting documents for these disbursements are SPS Refund Schedules, Voucher and Schedule of Payments, or SPS screen print, Form 3753, Manual Refund Posting Voucher, Form 5792 and related credit (Form 3809, Form 3245) or file source documentation (e.g., cross reference).

    3. Each SP site must designate at least one CO and one or more alternate to access SPS. The CO must have access to the SPS. Due to the sensitivity of the data processed, the BFS requires that every SPS user, at an agency, have an approved PD F 5487 E Fiscal Service PKI Certificate Action Request on file to gain access to SPS. If an active CO is detailed to a temporary work assignment exceeding 120 days their FS Form 210CO, Designation for SPS Certifying Officer and PD F 5487 E Fiscal Service PKI Certificate Action Request must be revoked.

      Note:

      An individual may not be designated as both a Certifying Officer and Data Entry Operator. (Internal Control, Separation of Duties)

    4. The Submission Processing Centers must submit the latest version of FS Form 210CO, Designation of Certifying Officer and PD F 5487 E Fiscal Service PKI Certificate Action Request to: the Chief Financial Officer (CFO), Administrative Operations (AO), Administrative Operations Office (AOO) for a Designation, a Revocation and a Name Change request. Additionally, effective November 1, 2018, federal Certifying Officers, who certify payments for agencies through Treasury, Fiscal Service, are required by Fiscal Service to complete the Fiscal Service Certifying Officer Training as part of each issuance of new or renewed credentials. On FS Form 210CO, the Designee must affirm completion of Fiscal Service Certifying Officer Training within 30 days prior to submission of the Form. A certificate of completion is only available upon successfully passing the exam at the end of the training. The certificate of completion must be maintained by the Designee and must be provided upon request to Fiscal Service. The training can be found at: https://fiscal.treasury.gov/fstraining/training/fs_cot.htm. To prepare the Designation of Certifying Officer package for submission refer to the "If - Then" chart below:

      Note:

      Ensure the memos and forms below are submitted timely to allow Financial Management Policy to prepare package for signature and the Bureau of the Fiscal Service to process paperwork

      IF..... THEN.....
      Personnel changes occur -
      Adding a Certifying Officer

      Prepare original Designation as follows:
      • Signed memorandum for the SP Field Director, to the AOO office

      • FS Form 210CO, Designation of Certifying Officer

      • PD F 5487 E Fiscal Service PKI Certificate Action Request

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Personnel changes occur -
      Removing a Certifying Officer

      Prepare Revocation as follows:
      • Signed memorandum from the SP Field Director to the AOO office

      • FS Form 210CO, Designation of Certifying Officer

      • PD F 5487 E Fiscal Service PKI, Certificate Action Request

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Name change occurs -
      Certifying Officer

      Prepare Name Change as follows:
      • Signed memorandum from the SP Field Director to the AOO office

      • FS Form 210CO, Designation of Certifying Officer (Designation, current name)

      • FS Form 210CO, Designation of Certifying Officer (Revocation, former name)

      • PD F 5487 E Fiscal Service PKI, Certificate Action Request (submitted as Recover), notate name change From (former name) To (current name) in all comment boxes

      • Notate "Name Change " on the top of all forms listed above

      • Photocopies of 2 forms of ID from the SPS user with their current name must be included

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Designation is due to expire and a "Letter of Expiration" is received from BFS
      Prepare Letter of Expiration/Renewal as follows:
      • Mark the appropriate box Renew or Revoke next to the CO name on the letter

      • Signed memorandum from the SP Field Director to the Chief Disbursing Officer, Bureau of Fiscal Service

      • Signed "Letter of Expiration or Renewal" (if using signed expiration letter for renewal, a new FS Form 210CO is not required)

      • Form 3210, Document Transmittal



      Mail to:
      Department of Treasury
      Kansas City Financial Center
      Attn: DSSV
      4241 NE 34th Street
      Kansas City MO 64117

      Upon receipt of the renewal or revocation package from BFS, photocopy the entire package (front, back, envelope) and provide to the AOO office by secured E-mail to: Cynthia.A.Carver@irs.gov

      or mail to:
      Internal Revenue Service
      Attn: Cynthia Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001

      Note:

      "Sample" forms and memorandums, noted in the table above can be obtained in the SP, ATP, SharePoint site at the following link: https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx under the "FMS Forms and Memorandums" link. The ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. General access permissions request must include employee name with corresponding SEID. General access permissions must be requested by a management official and submitted by E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to: Sarah.A.Stanton@irs.gov.

    5. Certifying Officers must have an FS Form 210CO, Designation of Certifying Officer and a PD F 5487 E Fiscal Service PKI Certificate Action Request on file at the BFS, AOO office and the applicable Submission Processing Center. The Certifying Officer privileges must be renewed or revoked every two (2) years.

  2. Preparation of FS Form 210CO, Designation of Certifying Officer:

    1. Forms MUST be completed in Non-erasable Black ink and bear the Certifying Officer original signature.

      Note:

      The FS Form 210CO, Designation of Certifying Officer will be rejected if submitted with facsimile signatures, evidence of corrections, erasures or alterations.

    2. Section I - "Designation and Re-Designation" Complete the following: name, title and ALC of Certifying Officer and comments. Ensure one of the following boxes is checked, "Original Designation" , "Re-Designation" , "Revocation" .

    3. Section II - "Designee" Complete the following: Full Legal Name (middle initial is preferred), Title, Agency, Bureau, Division, effective date, phone and E-mail.

    4. Section III - "Signature Samples of Designee " (Designee must sign within all 4 boxes in BLACK INK).

    5. Section IV - "Designator Signature" (Designator must sign within the box in BLACK INK) The designator in this section is the Site, Field Director with an active FS Form 2958DO, Delegation of Authority on file. Also complete with the designator's following information: Full Legal Name (middle initial is preferred), Title, Agency, Bureau, Division, E-mail and phone.

    6. Section V - "Return Address of Designator" Complete with the site mailing address and telephone number of the respective Submission Processing Center Director or the Trusted Registration Agent (TRA) that maintains the FS Forms 210CO, Designation of Certifying Officer.

  3. The AOO office will forward the FS Form 210CO, Designation of Certifying Officer to the BFS. The BFS will validate or revoke and return the FS Form 210CO, Designation of Certifying Officer to the applicable Submission Processing Center as indicated in Section V of the FS Form 210CO, Designation of Certifying Officer. Allow four weeks for BFS to return the validated copy to the site and if not received within this period contact the BFS Help Desk at (816) 414-2340. The BFS validation is effective for a 2-year period and the validation label must be present on the back of the FS Form 210CO, Designation of Certifying Officer or letter of expiration when received from BFS.

    1. Upon receipt of the initial validation of a FS Form 210CO, Designation of Certifying Officer from the BFS, a PD F 5491 E Fiscal Service PKI Certificate In-Person Proofing Verification must be completed, along with a photocopy (front and back) of the employee photo identification verified while performing the In-Person Proofing and Mail to:
      Department of Treasury
      Kansas City Financial Center
      Attn: DSSV
      4241 NE 34th Street
      Kansas City, MO 64117

      Note:

      The above action must be completed to activate the Certifying Officer I-key for enabling access to the SPS system.

    2. If the SP site receives the FS Form 210CO, Designation of Certifying Officer validation and/or revocation package directly from BFS a copy of the complete package (front, back and envelope) must be provided to the AOO office for their records by secured E-mail to: Cynthia.A.Carver@irs.gov or by mail at the following address:
      Internal Revenue Service
      Attn: Cynthia A Carver, OS:CFO:FM
      1111 Constitution Ave, NW (Mail Stop 6167)
      Washington, DC 20224-0001

      Note:

      A file for each individual Certifying Officer must be maintained and accessible for review by internal and external stakeholders. The file must include FS Form 210CO, Designation of Certifying Officer and all associated documentation related to the designation. The Designations of Certifying Officers, forms, lists and correspondence relating to the designation to certify vouchers should be destroyed 6 years after revocation.

  4. A monthly review requirement of the FS Form 210CO, Designation of Certifying Officer file must be performed, documented, maintained for a period of 90 days and include the following:

    Note:

    The review should be performed by other than the TRA maintaining the file. (Internal Control Separation of Duties)

    • BFS validation is present

    • BFS validation is current

    • CO first and last name matches the name on SPS

    • CO name is on the current RSTRK(M) list

    • Signed Designation memo is present for the current 2-year period

  5. Certifying Officer (CO) Review Requirements: The CO must perform a review daily of source documents to verify that the refunds being disbursed for that day are complete, accurate, and procedures are being followed prior to certifying on the Secured Payment System (SPS). Verification should also be present that the documents have been reviewed by an Accounting Technician (this can be initials or an employee stamp). The supporting documents for these disbursements are SPS Refund Schedules, Voucher and Schedule of Payments, or SPS screen print, Form 3753, Manual Refund Posting Voucher and Form 5792.

    Due to the high volume of Manual refunds scheduled for daily certification, it is impossible for the CO to do a 100% review of all forms. This does not apply to the 3753’s that are required to be 100% reviewed along with the supporting documentation for completeness and accuracy prior to certification.

    For all manual refunds processed within the month, a total of 25 Forms 5792 and 10 Form 3753, Manual Refund Posting Voucher (from the 100% review already completed) are required to be documented and input into the share point. The CO must document all findings during the month, corrective actions taken and initial and date when the review was performed.

  6. Certifying Officer must review the following documentation and complete the revew sheet prior to certification:

    1. 100% review of all Form 3753, Manual Refund Posting Voucher

    2. Sample of Forms 5792 (must have total of 25 per month)

    3. Type of Refunds (IMF/BMF/NMF)

    4. Principal and Interest - Combined amount ot TC840’s being reviewed per Schedule Number. Complete one form per Schedule Number

    5. Schedule Numbers (Per 3.17.79-4)

    6. Money Amounts

    7. Number of items (verify accuracy of line items on the refund document) - Number of forms reviewed and copied

    8. Open Control Base for monitoring is present on taxpayer module for the Form 3753, Manual Refund Posting Voucher and Form 5792

    9. Notate any findings and corrective actions taken on the review sheet.


    Beginning in January 2017, the review of Form 5792 and Form 3753 , Manual Refund Posting Voucher will be stored in the ATP SharePoint site under the Certifying Officer Monthly Review document library on the left hand side of Home Page: https://organization.ds.irsnet.gov/sites/SPATPBranch/Certifying%20Officer%20Monthly%20Review/Forms/AllItems.aspx

    Note:

    Submission Processing Headquarters’ will verify monthly that all reviews have been completed by the CO for adherence to IRM

    .

    Requests for access to the ATP SharePoint site should be initiated by a management official and sent to Ronnie.Maldonado@irs.gov with a carbon copy to: Sarah.A.Stanton@irs.gov.
    The review documentation is available and listed within the document library. Refer to the tabs within the spreadsheet for recording the type of review being performed. There is a summary tab to be used to summarize the total manual refunds processed and reviewed each month. This summary should be attached to the front of the associated monthly review documentation.

    Note:

    Only the Certifying Officer Review Summary Cover Sheet, the Certifying Officer Review Monthly Cover Sheet, showing the total of each form processed for the month and the total reviewed, and the first page of the Form 3753, Manual Refund Posting Voucher or 5792 will be uploaded onto the SharePoint Site. It is not necessary to upload all supporting documentation onto the share point by the 5th workday of the following month.



    The review documentation must be maintained for a period of 90 days. All supporting documentation associated with the review must be made available to customers after approval from the Manual Refund manager.

    Note:

    The review of the Forms 5792 can be split up by week during the month as long as the monthly quota is met and documented.

Certifying Officer (CO) Training
  1. From January 1 and by February 1 of each year or upon designation, all Certifying Officers are required to annually review the Certifying Officer Users’ Guide and take the Manual Refund training stated in IRM 3.17.79.1.1.1, Training.

  2. In addition to the above training and from January 1 to January 15 of each year, the HQ Manual Refund Analyst or an appointee will conduct a CO course on the Roles and Responsibilities for Manual Refund Certifying Officers related to Internal Revenue Service processing requirements.

  3. Once the training is complete, each CO will record the credit under ELMS Job Aid is 71757 – Roles and Responsibilities for Manual Refund Certifying Officers. The CO and/or Manager will work with their training coordinator to record the credit.

    Note:

    This credit must be recorded on ELMS prior to the February 1 due date, with no exceptions.

Data Entry Operators (DEO)

  1. SPS Data Entry Operators are individuals designated authority to create and modify SPS payment requests to Treasury. They have been designated on a FS Form 210DEO, Designation for SPS Data Entry Operator by an authorized Designating Official with a valid FS Form 2958DO, Delegation of Authority on file with BFS.

  2. Each SP site must designate at least one DEO and one or more alternate to access SPS. Data Entry Operators are SP Accounting employees that have access to the BFS Secured Payment System (SPS). Due to the sensitivity of the data processed through SPS, the BFS requires that every SPS user at an agency have an approved PD F 5487 E Fiscal Service PKI Certificate Action Request to gain access to SPS.

    Note:

    An individual may not be designated as both an SPS Data Entry Operator and Certifying Officer. The DEO has access to certain IDRS Command Codes (CC) that will allow them to perform daily work duties, adherence to the internal control separation of duties must be followed. The DEO must not utilize CC RFUND and access SPS within the same work day.

    1. The Submission Processing Centers must submit the latest version of FS Form 210DEO, Designation for SPS Data Entry Operator and PD F 5487 E Fiscal Service PKI Certificate Action Request to: the Chief Financial Officer (CFO), Administrative Operations (AO), Administrative Operations Office (AOO). If an active DEO is detailed to a temporary work assignment exceeding 120 days their FS Form 210DEO, Designation for SPS Data Entry Operator and PD F 5487 E Fiscal Service PKI Certificate Action Request must be revoked. Additionally, effective November 1, 2018, federal Data Entry Operators, who process payment requests for agencies through Treasury, Fiscal Service, are required by Fiscal Service to complete the Fiscal Service Certifying Officer Training as part of each issuance of new or renewed credentials. On FS Form 210DEO, Designation for SPS Data Entry Operator, the Designee must affirm completion of Fiscal Service Certifying Officer Training within 30 days prior to submission of the Form. A certificate of completion is only available upon successfully passing the exam at the end of the training. The certificate of completion must be maintained by the Designee and must be provided upon request to Fiscal Service. The training can be found at: https://fiscal.treasury.gov/fstraining/training/fs_cot.htm. To prepare the Designation of SPS Data Entry Operator package for submission refer to the "If - Then" chart below:

      Note:

      Ensure the memos and forms below are submitted timely to allow Financial Management Policy to prepare package for signature and the Bureau of the Fiscal Service to process paperwork

      .

      IF..... THEN.....
      Personnel changes occur -
      Adding SPS Data Entry Operator

      Prepare original Designation as follows:
      • Signed memorandum from the SP Field Director to the AOO office

      • FS Form 210DEO, Designation of SPS Data Entry Operator

      • PD F 5487 E Fiscal Service PKI Certification Action Request

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn: Cynthia A Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Personnel changes occur -
      Removing SPS Data Entry Operator

      Prepare Revocation as follows:
      • Signed memorandum from the SP Field Director to the AOO office

      • FS Form 210DEO, Designation of SPS Data Entry Operator

      • PD F 5487 E Fiscal Service PKI, Certificate Action Request

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn: Cynthia A Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Name change occurs -
      SPS Data Entry Operator

      Prepare Name Change as follows:
      • Signed memorandum from the SP Field Director to the AOO office

      • FS Form 210DEO, Designation of SPS Data Entry Operator (Designation current name)

      • FS Form 210DEO, Designation of SPS Data Entry Operator (Revocation former name)

      • PD F 5487 E Fiscal Service PKI Certificate Action Request (submitted as "Recover" ). notate name change From (former name) To (current name) in all comment boxes

      • Notate "Name Change" on top of all forms listed above

      • Photocopies of two forms of ID from the SPS user with their current name (must be included)

      • Form 3210, Document Transmittal



      Mail to:
      Internal Revenue Service
      Attn:Cynthia A Carver, OS:CFO:FM
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001
      Designation is due to expire and a "Letter of Expiration/Renewal" is received from BFS.
      Prepare Letter of Expiration/Renewal as follows:
      • Mark the appropriate box Renew or Revoke next to the DEO name on the letter

      • Signed memorandum from the SP Field Director to the Chief Disbursing Officer, Bureau of Fiscal Service

      • Signed "Letter of Expiration/Renewal" (if using signed expiration letter of renewal, a new FS Form 210DEO is not required)

      • Form 3210, Document Transmittal



      Mail to:
      Department of Treasury
      Kansas City Financial Center
      Attn: DSSV
      4241 NE 34th Street
      Kansas City MO 64117

      Upon receipt of the renewal or revocation validation package from BFS, photocopy the complete package (front, back, envelope) and provide to the AOO office by secured E-mail to:
      Cynthia.A.Carver@irs.gov
      or mail to:
      Internal Revenue Service
      Attn: Cynthia A Carver, OS:CFO;FM:P
      1111 Constitution Ave NW (Mail Stop 6167)
      Washington, DC 20224-0001

      Note:

      Sample memorandums and FMS forms are available on the Submission Processing, Accounting and Tax Payment Branch, SharePoint site at the following link: https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx under the "FMS Forms and Memorandums" link. The ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. General access permissions request must include employee name with corresponding SEID. General access permissions must be requested by a management official and submitted by E-mail to: Ronnie Maldonado@irs.gov with a carbon copy to: Sarah.A.Stanton@irs.gov.

    2. Data Entry Operators must have a FS Form 210DEO, Designation for SPS Data Entry Operator and a PD F 5487 E Fiscal Service PKI Certificate Action Request on file at the BFS, AOO office and the applicable Submission Processing Center. The DEO privileges must be renewed or revoked every two (2) years.

  3. Preparation of FS Form 210DEO, Designation for SPS Data Entry Operator:

    1. Forms MUST be completed in Non-Erasable black ink and bear the DEO original signature.

      Note:

      The FS Form 210DEO, Designation for SPS Data Entry Operator will be rejected if submitted with facsimile signatures, evidence of corrections, erasures or alterations.

    2. Section I- "Designation and Re-Designation" Complete the following: name, title and ALC of the DEO and comments. Ensure one of the following boxes is checked, "Original Designation" , "Re-Designation" , "Revocation" .

    3. Section II - "Designee" Complete the following: Full Legal Name (middle initial is preferred), Title, Agency, Bureau, Division, effective date, phone and E-mail.

    4. Section III - "Signature Samples of Designee " (Designee must sign within all 4 boxes in Non-erasable Black ink).

    5. Section IV - "Designator Signature" (Designator must sign within the box in Non-erasable Black ink) The designator in this section is an Authorized Delegated Official with an active FS Form 2958DO, Delegation of Authority on file. Also complete with the designator's following information: Full Legal Name (middle initial is preferred), Title, Agency, Bureau, Division, E-mail and phone.

    6. Section V - "Return Address of Designator" Complete with the site mailing address and telephone number of the respective Submission Processing Center Director or the Trusted Registration Agent (TRA) that maintains the FS Forms 210DEO, Designation for SPS Data Entry Operator.

  4. The AOO office will forward the FS Form 210DEO, Designation for SPS Data Entry Operator and PD F 5487 E Fiscal Service PKI Certificate Action Request to the BFS. The BFS will validate or revoke and return the FS Form 210DEO, Designation for SPS Data Entry Operator to the applicable Submission Processing Center as indicated in Section V of the FS Form 210DEO, Designation for SPS Data Entry Operator. Allow four weeks for BFS to return the validated copy to the site and if not received within this period contact BFS Help Desk at (816) 414-2340. The BFS validation is effective for a 2-year period and the validation label must be present on the back of the FS Form 210DEO, Designation for SPS Data Entry Operator, or letter of expiration, when received from BFS.

    1. Upon receipt of the initial validation of a FS Form 210DEO, Designation of Data Entry Operator from the BFS, a PD F 5491 E Fiscal Service PKI Certificate In-Person Proofing Verification must be completed, along with a photocopy (front and back) of the employee photo identification verified while performing the In-Person Proofing and Mail to:
      Department of Treasury
      Kansas City Financial Center
      Attn: DSSV
      4241 NE 34th Street
      Kansas City, MO 64117

      Note:

      The above action must be completed to activate the Data Entry Operator I-key for enabling access to the SPS system.

    2. If the SP site receives the FS Form 210DEO, Designation of Data Entry Operator validation and/or revocation package directly from BFS a photocopy of the complete package (front, back and envelope) must be provided to the AOO office for their records. The copies can be sent by secured E-mail to: Cynthia.A.Carver@irs.gov or by mail at the following address:
      Internal Revenue Service
      Attn: Cynthia A Carver, OS:CFO:FM
      1111 Constitution Ave, NW (Mail Stop 6167)
      Washington, DC20224-0001

      Note:

      A file for each individual Data Entry Operator must be maintained and accessible for review by internal and external stakeholders. The file must include FS Form 210DEO, Designation of Data Entry Operator and all associated documentation related to the designation. The Designations of Data Entry Operator, forms, lists and correspondence relating to the designation should be destroyed 6 years after revocation.

  5. A monthly review requirement of the FS Form 210DEO, Designation for SPS Data Entry Operator file must be performed, documented, maintained for a period of 90 days.

    Note:

    The review should be conducted by someone other than the TRA maintaining the file. (Internal Control Separation of Duties)

    1. The review must include the following:

    • BFS validation is present

    • BFS validation is current

    • Verify the DEO first and last name matches the name on SPS

    • Signed delegation memo is current for the two year period

Generated Refunds Standard Form (Form) 1166, Voucher and Schedule of Payments, Secured Payment System (SPS)

  1. These procedures describe the general steps required when Enterprise Computing Center (ECC) prepares and certifies weekly files of Master File generated refunds (TC 846), Voucher and Schedule of Payments via Secure Payment System (SPS). Refund schedules are accompanied by electronic data files transmitted via CONNECT: Direct to the Kansas City, Bureau of the Fiscal Service (BFS) or other telecommunication techniques coordinated between the agencies. ECC certifies generated refunds (TC 846) through the SPS. Refer to IRM 3.17.79.2.2, Generated Refunds, Tapes and Schedules below.

  2. Secure Payment System (SPS) is the preferred method to certify refunds. If the SPS system is not accessible, immediately notify headquarters analyst Ronnie.Maldonado@irs.gov with a carbon copy to: Cathy.R.Andrews@irs.gov for further directive on actions needed. The Form 1166/SPS voucher and schedule of payments serves as a certification and confirmation processing method that the accompanying refunds were issued by the Kansas City, Bureau of the Fiscal Service.

Enterprise Computing Center (ECC) Generated Files

  1. The Enterprise Computing Center (ECC) generates and produces, in prescribed magnetic media output format, weekly schedules of refunds of overpayment balances on BMF and IMF accounts.

  2. The Customer Account Data Engine (CADE) 2 is the modernized system for Individual Master File (IMF).

  3. The components of CADE 2, Transition State 1, was deployed in January 2012. Changes included daily processing for certain individual taxpayers, Center production cycle, posting cycles, accelerated refunds and notices, and accelerated IDRS posting. Daily Processing, IMF (Individual Master File) processing with the cycle definition outlined below, but processing daily (daily transactions to daily accounts) with weekly processing occurring on Thursday.

    • Center Cycle Wednesday

    • Master File Processing- Thursday

    • Notice Review - Saturday -Monday (8+ days)

    • Unpostables - Available Tuesday; Closing Tuesday

    • Direct deposit refunds are issued in 4 business days from posting

    • Paper check refunds are issued in 6 business days from posting

    • IMF notices under a $500 tolerance (balance due under $500 or change in tax under $500) bypass Notice Review Processing System (NRPS) and are sent directly to Correspondence Processing System (CPS)

    • Establish the taxpayer account database that contains all individual taxpayer accounts. IMF processes all transactions and settles accounts and provides data to the CADE 2 database. IMF remains the system of record for Transition State 1

    • Key programs IDRS and IPM (Integrated Production Model) receive data from the CADE 2 database

    • Accelerated IDRS/TIF (Taxpayer Information File) Updates - The weekend IDRS/TIF analysis and updates occur the immediate Saturday after master file processing completes on Thursday.

  4. CC IMFOL/BMFOL definer "E" screen will contain the word "DAILY" in the upper right hand corner to indicate the taxpayer account qualifies for daily processing.

  5. IMF transactions posting time-frames are outlined as follows:

    1. Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after Center input. Transactions will be viewable on IDRS command codes the third day after Center input.

    2. Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and may result in the account type changing to Weekly.

    3. Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

      Note:

      For items b and c, transactions will be viewable using CFOL command codes on the Saturday following the Thursday processing run. Transactions will be viewable on IDRS command codes Monday following the Thursday processing run.

    4. Use of the Posting Delay Code on transactions will result in the transaction being held until the weekly processing on Thursday. When the transaction is processed on Thursday and the Posting Delay Code contains a value other than zero, the transaction will continue to re-sequence for the number of cycles equal to the value.

      Note:

      A transaction input with a Posting Delay Code of 1 will be processed on Thursday, and will re-sequence until the following weekly processing day (the following Thursday).

      Note:

      Use of the Posting Delay Code on a daily account with daily transactions may result in delaying the posting of the transactions that would resolve the account.

  6. BMF transaction posting time-frames are outlined as follows:

    1. Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

    2. Transactions will be viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

      Note:

      With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  7. IMF cycle posting dates will reflect a format of YYYYCCDD. YYYY will indicate the year. CC will indicate the posting cycle. For IMF transactions, the following values for DD are defined:

    1. 01 = Friday

    2. 02 = Monday

    3. 03 = Tuesday

    4. 04 = Wednesday

    5. 05 = Thursday

      Note:

      BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF cycle posting dates in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

  8. With accelerated refund processing, there are conditions under which accounts will not reflect the refund transaction (TC 846) upon settlement of the account. IMF will systemically prevent the refund transaction from generating. IMF will systemically generate the refund transaction (TC 846) when the refund hold expires.

    1. A refund hold will be applied when through Master File processing of the account, the account meets Priority Refund Transcript criteria (Refund, Refund-E, Refund-S, $1M, and $10M). The accounts will reflect a TC 971 AC 805 and a TC 570 with blocking series “55555” indicating the refund hold has been applied. The hold will systemically expire 4 business days after the TC 971 AC 805 date.

    2. A refund hold will be applied when through Master File processing of the account, the account meets criteria to issue CP (Computer Paragraph) 12, 16, 21, or 24. These accounts will be processed during the weekly processing on Thursday. The accounts will reflect a TC 971 AC 804 and a C- freeze. The hold will systemically expire 7 calendar days after the TC 971 AC 804 date.

  9. Due to the accelerated refund processing, BFS will no longer accept NOREF or HAL requests for IMF refunds. Functions that are impacted by the refund holds outlined in (9) will have specific guidelines to address accounts that have the systemic holds instead of using NOREF as Submission Processing has known it pre-January 2012.

  10. For functions that do not have specific requirements to place holds on inventory, the following guidelines are provided for IMF accounts:

    Note:

    BMF/EPMF are not changing to daily processing or accelerating refund schedule issuance. BMF/EPMF accounts can continue to use NOREF per existing guidelines.

    If And Then
    The account has a TC 846 posted   A NOREF request cannot be initiated on an IMF account. Erroneous Refund Procedures should be followed - See IRM 21.4.5, Refund Inquiries - Erroneous Refunds.
    The account has a TC 570 with blocking series “55555” A TC 971 AC 805 is also posted on the module indicating a refund transcript has generated
    1. A TC 570 can be input up to three (3) business days after the systemically generated TC 570 cycle posted date (up to 6:00 p.m. local time) to prevent the refund transaction from generating.

    2. A NOREFP can be input on the third business day after 6:00 p.m. local time or the fourth business day before 9:00 p.m. eastern time Friday-Wednesday (10:00 p.m. eastern time on Thursday) from the systemically generated TC 570 cycle posted date to request IMF reverse the refund and stop the refund information from going to FMS.

    The account has a TC 570 with blocking series "55555" A TC 971 AC 804 is also posted on the module indicating a CP 12, CP 21, or CP 24 has been issued
    1. A TC 570 can be input up through 6:00 p.m. Local time the following Wednesday (6 calendar days after the systemically generated TC 570 cycle posted date) to prevent the refund transaction from generating.

    2. A NOREFP can be input on the third business day after 6:00 p.m. local time or the fourth business day before 9:00 p.m. eastern time Friday-Wednesday (10:00 p.m. eastern on Thursday) from the systemically generated TC 570 cycle posted date to request IMF reverse the refund and stop the refund information from going to FMS.

  11. Quality Review is not impacted by CADE 2 daily processing and will operate as it has been pre-January 2012. If the Quality Review command codes have been executed input to place a hold on and employee’s work, the hold will prevent any transactions from being forwarded to the Computing Center for Master File processing, allowing the review period the following day.

Generated Refunds, Tapes and Schedules

  1. Separate files and refund schedules are produced at ECC as follows:

    1. BMF refunds for each Center (Excluding D.O. 66 and 98).

    2. IMF refunds for each Center (Excluding D.O. 66, 97 and 98).

    3. BMF International refunds for Districts 66 and 98.

    4. IMF International refunds for Districts 66, 97 and 98.

    5. IMF refund/rebate/EIC data for each Center (excluding D.O. 66, 97 and 98).

    6. BMF refund/rebate data for each Center (excluding D.O. 66 and 98).

    7. IMF direct deposit refunds for each Center (excluding D.O. 66, 97 and 98).

    8. BMF direct deposit refunds for International for Districts 66 and 98.

    9. BMF accelerated refunds for each Center (excluding Districts 66 and 98).

    10. BMF accelerated refunds for International for Districts 66 and 98.

    11. IMF direct deposit refunds for Assistant Commissioner (International) for D.O. 66, 97 and 98.

  2. ECC prints and certifies the Voucher and Schedule of Payments, in three parts, for each refund file from the Secure Payment System (SPS). The 23C Assessment Certificate and posting calendars can be found in Document 6209 as well as associated IRM's.

Processing Requests for Refunds

  1. These procedures describe the various types of requests for refund and the forms and credit source document requirements. These are not refunds generated from the Master File (MF).

  2. Credit source documentation is critical when issuing refunds from the general ledger accounts. Managers must maintain internal control mechanisms to prevent unauthorized disbursements, fraud, abuse and erroneous refunds.

  3. As a general rule, Integrated Data Retrieval System or IDRS/MF generated refunds should be issued whenever possible. When MF generated refunds are not possible because of system limitations, Submission Processing Center Accounting Operations Department employees must certify exception-processing manual refunds.

  4. Initiators of refunds must inform taxpayers that they are still subject to offset by BFS through the Treasury Offset Program (TOP) for past due child support or Federal agency debts owed. Refer to IRM 21.4.6, Refund Offset.

  5. Offset Bypass Indicators (BPI) identify TOP eligibility for BFS. Refer to IRM 21.4.6, Refund Offset, for further information.

General Ledger Account - Types of Refunds

  1. Refunds from deposit fund, (for example, 4710 Account Offer-in-Compromise (OIC), 4720 Account Seizure, 4730 Account Miscellaneous and refunds of $100 Million or more, must be initiated on a Form 3753, Manual Refund Posting Voucher and submitted on Form 1166/Secure Payment System (SPS).

  2. Manual refunds of $100 Million dollars or more are manually prepared on paper by the BFS. All other forms of manual refunds, are submitted on Form 1166 and transmitted to BFS via Secure Payment System (SPS) by Certifying Officers.

  3. Submission Processing Center employees and field offices must make every effort to issue IDRS-generated refunds, whenever possible.

  4. All supporting documentation must be attached to the manual refund request.

  5. "Bank Lead" manual refund requests must document all x-reference information in the "Remarks" Section IV of the Form 3753(Manual Refund Posting Voucher), i.e., TIN, money amount, deposit ticket number, date of deposit, "unapplied refund reversal to be issued to bank" .

  6. "Bank Lead" manual refund requests supporting documentation must include the following:

    • If payment was applied to the taxpayer account, a copy of current taxpayer account reflecting TC 720 payment and a copy of Form 3809 , reflecting a debit to taxpayer and credit to the general ledger account

    • If the payment remained in the general ledger account, a copy of the Memorandum from the RICS External Leads reflecting the commingled money

    • Copy of Bank request for specified funds (E-mail or letter) including: taxpayer information, date of payment, money amount, and copy of listing or check

    • Copy of original Deposit (SF215 Deposit Ticket with listing or check)

      Note:

      "Bank Lead" funds should not be disbursed to other than the Financial Institution (Bank) which originally submitted payment. Exception: Documentation from Chief Counsel approving the issuance of the specified funds, to a specified account or taxpayer.

Processing Manual Refunds

  1. Submission Processing, Accounting Operations, receives perfected (complete and signed with supporting documents attached) Form 5792, Request for IDRS Generated Refunds or Form 3753, Manual Refund Posting Voucher. Authorized requests for IDRS or manual refunds are received from various areas. Not all TC 840(s) are for manual refunds; some TC 840(s) are to enable the Master File to release freeze conditions - See Exhibit 3.17.79-2.

    Note:

    If the account has an M- freeze, reject back to originator for research on NMF at Kansas City Submission Processing Center.

    Note:

    Refunds for Form 1099-OID or Form 1099-MISC must be generated systemically. If a manual refund request with a Form 1099-OID or 1099-MISC is received, Accounting should reject the manual refund per IRM 3.17.79.3.2.2, Rejecting Manual Refunds.

  2. Appropriate taxpayer account research must be performed by the initiator prior to forwarding the case to Accounting, Manual Refund function. See IRM 21.4.4, Manual Refunds and IRM 3.17.79.3.3.1, Actions Required of Initiators Before Requesting Refunds.

  3. Review case to ensure that all pertinent information is attached (e.g., credit source documentation).

    1. If hold codes are not correctly input by initiator, Accounting will reject - See IRM 3.17.79.3.2.2, Rejecting Manual Refunds. This prevents duplicate refunds.

    2. Form 5792 /Form 3753, Manual Refund Posting Voucher must include the specific reason and appropriate authority in Section II (1.) and the "Remarks" field as to why this item must be issued as a manual refund.

    3. All Forms 5792/Forms 3753, Manual Refund Posting Vouchermust include the BOD that is initiating the manual refund.

    4. All Forms 5792/Forms 3753, Manual Refund Posting Vouchermust have the box checked indicating that an open control base exists. If the box is not checked, access IDRS to see if the control base has in fact been opened. If the control base is open the reviewer must mark the box. If the control base has not been opened then reject - See IRM 3.17.79.3.2.2, Rejecting Manual Refunds.

  4. The initiator must indicate the DLN or other cross-reference transaction code or credit source document filing location in the "DLN of return" field of the manual refund posting document.

  5. When a dummy module is used, the DLN of the credit document must be reflected on the account or entered as a history item of the refund module and in the "DLN of return" field of the manual refund posting document.

  6. All manual refund request Forms 3753, Manual Refund Posting Voucher and Forms 5792 must be sent to Accounting in electronic Portable Document Format (PDF) ONLY, be digitally signed, and the current version of Form 3753, Manual Refund Posting Voucher (rev.12-2015) and Form 5792 (rev. 12-2015) must be used . To assure the integrity of the digital signature, the digital signature must include the Name and SEID - See IRM 3.17.79.3.2.3, Manual Refund Digital Signature Requirement.

    Note:

    The digital signature format used must match the “Authorizing Official’s Name and SEID” of the approving official on the active Form 14031 - Section II on file.

    Note:

    The requirement for SEID digital signature is only for IRM 3.17.79, Accounting and Data Control - Accounting Refund Transactions and directly effects Forms 3753, 5792, 10247, and 14031. Other forms not related to manual refund processing might require a different type of digital signature format.



    All digitally signed manual refund forms and associated documents must be submitted to Accounting using the following methods:

    • Emailed to the site’s Manual Refund organizational mailbox or

    • Uploaded to an existing shared drive.

    Submission Processing Site Mailing Address Contact Information
    Austin Accounting Manual Refund Function
    3651 S Interregional HWY 35 - Stop 6263
    Austin, TX 78741
    Phone: 737-800-5026
    Alternate Phone: 737-800-5024
    E-mail: *W&I SP Manual Refunds Austin
    Fresno Accounting Manual Refund Function
    5045 E Butler Ave - Stop 37103
    Fresno, CA 93727
    Phone: 559-454-6194
    E-mail: *W&I SP Manual Refunds Fresno
    Kansas City Accounting Manual Refund Function
    333 W Pershing Rd - Stop 6250 P-6
    Kansas City, MO 64108
    Phone: 816-499-5890
    E-mail: *W&I SP Manual Refunds Kansas City
    Ogden Accounting Manual Refund Function
    1973 N Rulon White Blvd M/S: 6250
    Ogden, UT 84404
    Phone: 801-620-7373
    E-mail: *W&I SP Manual Refunds Ogden
  7. Various refunds are initiated by Business Operating Divisions not on location of Submission Processing Centers through a shared drive. Due to Submission Processing Center consolidation, multiple BOD(s) are now uploading manual refunds to the gaining SP Accounting functions. The refund documents are uploaded to a shared drive that Accounting accesses. Accounting will then retrieve the Form 3753, Manual Refund Posting Voucher or Form 5792 and back-up documentation from the shared drive and process them using normal procedures. Accounting no longer accepts fax, Efax, or Scanned Forms 3753, Manual Refund Posting Voucher and Forms 5792 manual refund requests - See IRM 3.17.79.3.2(6) above.

  8. Appropriate account research must occur prior to issuing manual refunds, including researching for outstanding balances, (e.g., IMFOL, BMFOL, MFTRA, TXMOD, ACTRA, DMF, and ANMF), freeze conditions and Criminal Investigation or Examination (e.g., TC(s) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or 810).

    Note:

    If the account has an M- freeze, reject back to originator for research on NMF in Kansas City Submission Processing Center.

  9. If review of the account on IDRS reflects a TC 971 AC 664 indicating a Form 3753, Manual Refund Posting Voucher Manual Refund is in process then reject - See IRM 3.17.79.3.2.2, Rejecting Manual Refunds.

    Note:

    Contact may be made with the originator prior to rejecting the request to verify that the second refund is not a duplicate.

  10. If bankruptcy is indicated on Form 3753, Manual Refund Posting Voucher or Form 5792, accept the following:

    • A -V or -W freeze code appears on the taxpayer account or there is a pending TC 520.

      Note:

      A TC 520 sets the -W, it is not necessary for a TC 520 to appear on every tax module. Ensure the -W appears on the tax module for refund disbursement.

      and

    • There is no pending TC 521

      or

    • A -V or -W freeze present, and there is a valid reason stated in the remarks section of Form 5792.

      Example:

      (1) case discharge, but the trustee is requesting for money to be returned as it was sent in error

      Example:

      (2) trustee requests refund of funds sent in error

      Note:

      Section II, Box 3 and Box 7 of Form 5792 is not applicable to refunds issued by Insolvency, therefore there is no requirement for these two boxes to be checked.

  11. When working statute year cases, contact the Statute function prior to processing the refund requests.

  12. If the manual refund request is being rejected see IRM 3.17.79.3.2.2, Manual Refund Rejects. Apply prudent judgment prior to rejecting manual refund requests.

  13. Credit interest for an overpayment issued as a manual refund (Form 3753, Manual Refund Posting Voucher or Form 5792) is computed FROM the interest start date TO the Refund Issue Date.

    Note:

    For manual refunds, the Refund Issue Date is the actual date of the refund check.

    Refund Type/Amount Refund Issue Date Criteria
    a. $10 Million or more Date received in Accounting Accounting must submit the refund to the Bureau of the Fiscal Service (BFS) prior to 12:00 p.m., Central Standard Time. (If time-frame is not met, see item c.)
    b. FEDWIRE (Federal Reserve Wire Network) Date received in Accounting Accounting must submit the refund to the Bureau of the Fiscal Service (BFS) prior to 4:50 p.m., Central Standard Time. (If time-frame is not met, see item c.)
    c. All others Date received in Accounting plus 1 business day Refund issue date is Accounting received date plus 1 business day if criteria a and b are not met.

    Exception:

    Form 1042-S , Income Subject to Withholding Under Chapter 3, is a dollars only form and must be rounded to the nearest dollar along with all required documentation. Therefore, when reviewing the Form 1042-S package "Do Not" reject the package if the attached COMPA print is not rounded - See IRM 21.8.2.7.3.2 , Adjusting Employee Visa Claims (Employee's Account - IMF) and IRM 21.8.2.9.14, Refunds on Form 1120-F/FSC That Include Interest.

    Note:

    A request for a manual refund to be deposited to a pre-paid debit card is ONLY acceptable for a TAS Hardship.

  14. When determining the 45-day interest free period, refer to IRC sections 6611(e)(1), 6611(e)(4) and 6611(g). See IRM 20.2.4.7.5.2 (2), 45-Day Rule and All Original Tax Returns and IRM 20.2.4.7.6, 180-Day Rule for instruction.

    Note:

    IRC 6611(e), in coordination with IRC 6611(g), provides that no interest is allowed on an overpayment which is refunded within 45 days (or 180 days in the case of any overpayment resulting from tax deducted and withheld under chapter 3 or 4) after the later of the: (1) return due date (determined without regard to any extension of time for filing the return); (2) return received date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return); or (3) date the return was filed in processible form. Therefore, every effort must be made to ensure payment of the refunds within the interest free period, to reduce the amount of interest paid. Manual refunds may be issued in hardship cases, when a refund cannot be generated through Master File due to systemic limitations, and on corporate original settlement returns, and IMF/BMF carryback refunds when the 45-day interest free period is in jeopardy. See IRM 20.2.4.7.5.2(2) , 45-Day Rule and All Original Tax Returns, for specific information on the interest free period and for interest computation instructions.

  15. Attach a copy of each Form 5792 and/or Form 3753, Manual Refund Posting Voucher to the related Form 1166 SPS print, maintained in Accounting.

  16. If the return is in the unpostable section of the Master File, the return record will be nullified in accordance with IRM 3.12.32, Generalized Unpostable Framework (GUF).

  17. If an account shows the literal "CEP" or "LARGE CORP" , followed by a two-digit Center Code or File Location Code indicator on IDRS, Master File transcripts, or "BMFOL" , the initiator must indicate in the remarks area of Form 5792 or Form 3753, Manual Refund Posting Voucher that the refund was approved by the Technical function. (For example, "Approved By Technical" , "Tech Approved" or "TPR" ).

    Note:

    For information concerning the 180-day interest free period on any overpayment resulting from tax deducted and withheld under Chapter 3 (withholding of tax on non-resident aliens and foreign corporations) or Chapter 4 (taxes to enforce reporting on certain foreign accounts) of the Internal Revenue Code - See IRM 20.2.4.7.6, 180-Day Rule.

  18. Submission Processing Centers may issue manual refunds for hardship, systemic limitations, Service-caused unnecessary delays, corporate original settlements, and IMF/BMF carry-backs when the 45-day interest-free period is in jeopardy.

  19. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Substitute “case” with “return”, “Form 1040-X”, “transcript”, etc., according to the program covered in the applicable IRM.

  20. All SP initiated manual refunds must be controlled for secondary monitoring by the Accounting function. It is the discretion of management to select the team that will work the aged inventory listing (CCA). Each SP Center is required to use a unique team identifier, that will automatically generate all open controls to the weekly aged inventory listing (CCA). This is a secondary monitoring performed by the Accounting function and does not require the use on the EMT tool. Monitoring the Case Control Activity (CCA) list must be performed on a weekly basis. This monitoring process is in addition to the monitoring that is required by the originator(s) of the manual refund request. When the manual refund requests are received, the Accounting function will open a control base using the unique team identifier.

    • When monitoring the Form 5792, ensure no TC 971 AC 664 reflects on the module during the time that it is being monitored. Presence of a TC 971 AC 664 indicates that a Form 3753, Manual Refund Posting Voucher Manual Refund is in process. Necessary actions must be initiated to stop the processing of the Form 3753, Manual Refund Posting Voucher to prevent an erroneous refund.

  21. Requests for hardship Manual Refunds (typically requested by Taxpayer Advocate Service) are described in IRM 3.17.79.3.3, Issuing Hardship Refunds.

  22. Joint Committee Cases per IRC 6405: employees must provide the supporting documentation to the Joint Committee Specialist assigned to the case. See IRM 4.36.4, Joint Committee Specialist Procedures.

  23. Refunds for Branded Prescription Drugs under $10 Million are systemically generated. There are times when a manual refund is required (i.e., undeliverable refund due to bad address). Supporting documentation for processing manual refund requests for Branded Prescription Drugs under $10 Million may include Form 3911 , Taxpayer Statement Regarding Refund, “Letter of Overpayment” and “Amount Due to Covered Entity”. These documents are acceptable as supporting documentation.

    Note:

    Form 3911, Taxpayer Statement Regarding Refund may be used to issue a manual refund to an address other than what is on ENMOD.

Uploading Forms 3753 and Forms 5792 (PDF Copy) onto the Manual Refund Project SharePoint Site
  1. Upon acceptance (See IRM 3.17.79.3.2, Processing Manual Refunds) accounting will print a copy of the package (Form 3753, Manual Refund Posting Voucher or Form 5792 and Back-up Documentation) to be used for processing the manual refund request and upload a copy of the Form 3753, Manual Refund Posting Voucher and Form 5792 (in PDF format) onto the Manual Refund Document Library:https://organization.ds.irsnet.gov/sites/WISpManRefProject/_layouts/15/start.aspx#/Shared%20Documents/Forms/COReview.aspx

    Note:

    Once uploaded on to the Manual Refund Document Library the E-mail(s) must be deleted.

  2. The Manual Refund Document Library is only accessible by Submission Processing, Accounting designated personnel. Access permissions request for the Form 3753, Manual Refund Posting Voucher and Form 5792 link within the Manual Refund Project SharePoint site is restricted to designated personnel and the request for access must include; employee name with corresponding SEID, along with the designated option of either "Read Only" or "Contribute" indicated. Access permissions must be requested by a management official and submitted by E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to: Sarah.A.Stanton@irs.gov.

  3. Accounting will receive two files for each manual refund request: one for the Form 3753, Manual Refund Posting Voucher or Form 5792 (in PDF format) and a second file for the back-up documentation (scanned).

  4. The following naming convention will be used to upload the Form 3753 , Manual Refund Posting Voucher and Form 5792: Name control, last four digits of TIN, Tax period, Form (Example: BIRD 1234 201812 5792).

    Note:

    If there are multiple Form 3753, Manual Refund Posting Voucher or Form 5792 for the same taxpayer and tax period, then the succeeding forms naming convention will be followed by: _1, _2, etc. (Example: BIRD 1234 201812 5792_1, BIRD 1234 201812 5792_2, etc.).

  5. The uploaded documents will be stored by calendar year (i.e. 2017, 2018, 2019, etc.) and will be destroyed 5 year(s) after the end of the processing year.

    Note:

    The processing year will consist of January 1 - December 31, if the processing year ends on a weekend or Holiday, then forms will be destryoed on the next business day.

Rejecting Manual Refunds
  1. Daily, the Submission Processing, Accounting functions are required to reject manual refund requests with errors. (Form 5792Request for IDRS Generated Refund (IGR) and Form 3753Manual Refund Posting Voucher)

  2. The "Accounting Operation Manual Refund Reject Feedback" document must be completed for EACH rejected manual refund, including:

    • The command code "RFUNDR" input, Employee IDRS number (Form 5792)

    • The header on BOTH pages

    • Selection of All errors that apply

    • If "Other" is selected the comment box Must be completed

  3. Daily send rejected manual refund document by Secured E-mail. The E-mail subject line Must read as follows: MR Reject (date) Subject Line Example: MR Reject MM-DD-YY

  4. Email each MR Reject to the following:

    • The “Originator” of the manual refund request

    • The "Approver" of the manual refund request.

    • The appropriate business operating division (BOD) designated point of contact (POC) listed in (9).

  5. Record all manual refund reject errors, by completing the: "Rejected Manual Refund Report" . The report and the reject document are available on the Accounting Tax Payment (ATP) SharePoint site. https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx

  6. The Accounting function must complete the report daily. The report will reflect daily and weekly cumulative reject data, for data tracking and trending purposes of manual refund errors. Beginning in October 2018, the Accounting function must upload the report to the SharePoint site located at: https://organization.ds.irsnet.gov/sites/SPATPBranch/Manual%20Refund%20Rejects/Forms/AllItems.aspxmonthly, on the 5th business day of each month. . All rejected manual refund requests must be maintained in the Accounting function for five work days from the reject date and then they can be destroyed. In the event a BOD requests the documentation prior to day five, provide to them in lieu of destruction, with REJECT notated in "RED" on the Form 5792 and/or Form 3753, Manual Refund Posting Voucher with a Form 3210Document Transmittal. The Accounting function must maintain a photocopy of the rejected refund with Part 4 – of the Form 3210.

    Note:

    The Submission Processing (SP), Accounting and Tax Payment SharePoint site is only accessible by SP, Accounting designated personnel. Access permissions request for the Monthly Reject Report link within the SP, ATP SharePoint site is restricted to designated personnel and the request for access must include; employee name with corresponding SEID, along with the designated option of either "Read Only" or "Contribute" indicated. Access permissions must be requested by a management official and submitted by E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to: Sarah.A.Stanton@irs.gov.

  7. A dispute of the manual refund reject will be worked by the Accounting function, if it cannot be resolved at the team level. The Planning and Analysis (P&A) analyst should be contacted to assist with resolution. If the P&A analyst is unable to make a determination, HQ would then be contacted by the P&A analyst. If a rejected manual refund request is disputed and resolved within 5 days, this must be updated on the reject data report. If the data is corrected on a previously submitted weekly report, provide a revised report to the HQ analyst. In the event a revised report needs to be provided the E-mail subject line should be: Revised MR Report Month-Year.

  8. Upon request, the Accounting HQ analyst will share the report data with all designated BOD POCs. This data can be used by the BOD’s to compare data, identify training needs, IRM procedural updates, and any improvements needed to reduce the volume of rejected manual refunds.

    Note:

    This is a manual refund reject data collection report only; and does not reflect manual refund receipts and reject volumes. The receipts and reject volumes are reflected on the weekly production report (MMRHQ). This process will allow consistency in the manual refund reject process and enable tracking and trending analysis of manual refund errors by each BOD.

  9. Manual Refund Rejects, Designated BOD Point of Contacts

    BOD Point of Contact
    SBSE Wanda.Ramos@irs.govDeborah Castracane@irs.gov
    TAS Marie.E.Donnelly@irs.gov
    Donald.A.Dick@irs.gov
    TEGE JaLynne.K.Archibald@irs.gov
    W&I AM *W&I CAS:AM:BODPOC:MANREF
    W&I SP Ronnie.Maldonado@irs.gov
    Cathy.R.Andrews@irs.gov
    W&I RICS Florence.C.Tersigni@irs.gov
    Cynthia.L.Gaskamp@irs.gov
    W&I FA:CARE Michelle.R.Jones.irs.gov (Location is Atlanta, GA) Virginia.A.Miller@irs.govFrances.Florence@irs.gov
    Appeals Chellie.M.Davis@irs.gov

    Note:

    W&I:FA:CARE will be a “write-in” BOD on the Form 5792 and Form 3753, Manual Refund Posting Voucher in the “Remarks”. Although, the BOD box will be marked as: W&I: AM, these rejects must be sent to the W&I:FA:CARE, BOD, POC, and reported as W&I:FA:CARE on the weekly production reporting. All command code “REFAP” errors must "ONLY" be recorded as a Submission Processing error daily and weekly on the "Rejected Manual Refund Report" . A Manual Refund Reject Feedback document should not be completed. Manual Refund rejects for Philadelphia, SBSE, Only, will be recorded on the Manual Refund Reject Spreadsheet within the "S" drive, Error Spreadsheet folder by Ogden, Submission Processing, Accounting in lieu of the Manual Refund Reject Feedback document E-mail. Effective November 2014 the W&I Compliance BOD is no longer valid due to the realignment to SBSE.

Manual Refund Digital Signature Requirement
  1. All Form 3753, Manual Refund Posting Voucher, Form 5792Request for IDRS Generated Refund (IGR), and Photocopy Fee Refund Listing received in Accounting Operations require the same digital signature format as follows:

    1. Must be submitted to accounting in PDF format,

    2. Must have a VALID PIV Digital Signature and state US Government to the right of the signature when signing.

    3. Must include the SEID and Name of the signer (Example: 12DOE John Robin).

  2. The Accounting Operations function must also verify that the forms are systemically validated when the PDF file is opened.

    Note:

    The systemic validation process can be verified by a quick pop up box on the lower right corner of the screen that states: Validating all Signatures when the PDF document is opening.

  3. Any form received in Accounting Operations that does not meet the Digital Signature requirements above will be rejected back to the Originator.

  4. Click on the following link to access the digital signature setup procedures: https://organization.ds.irsnet.gov/sites/WISpManRefProject/_layouts/15/start.aspx#/Shared%20Documents/Forms/COReview.aspx.

Issuing Hardship Refunds

  1. The Certifying Officer, in accordance with 31 USC §3528, is accountable for refunds certified for payment and has the right of review as prescribed in IRM 3.17.79.1.7, Authorized Signatures and Delegations of Authority. The refund and Certifying Officer review is performed the next day.

  2. Taxpayer Advocate Service (TAS) refund requests will be received as hardships. Manual refund cases received as a paper check (Form 5792) requests must be complete and contain all required supporting documentation (including third party verification or a signed statement from the Local Tax Advocate (LTA)) in order for TAS to initiate. See IRM 21.4.4, Manual Refunds.

  3. A direct deposit (Form 3753) request must be complete and contain all required supporting documentation (including 3rd party verification) or a signed statement from the LTA in order for TAS to initiate. In addition to following procedural guidelines in IRM 21.4.4, Manual Refunds, the following must be included to substantiate an ACH/Direct Deposit (DD) request:

    1. Proof of economic hardship to support issuing an ACH/DD manual refund.

    2. Proof from bank that a savings or checking account exists and it is the account of the taxpayer or a voided check. Use discretion when taxpayer accounts are Married Filing Joint (MFJ).

    Note:

    Accounting will issue ACH/DD refunds to a savings or checking bank account that is listed in the name of one of the Married Filing Joint (MFJ) taxpayers ONLY when an injured spouse claim has been filed (copy attached). The name on the bank account MUST match the name of the taxpayer identified as the injured spouse, NO EXCEPTION.

  4. Refunds to be processed in less than 5 days.Hardships refunds are those refunds required based on hardship where the taxpayer needs the refund in less than five (5) days.

    1. These requests are granted under rare and unusual circumstances and must meet certain criteria. See references and actions required provided in IRM 13.1, Taxpayer Advocate Case Procedures.

    2. Procedures for immediate processing of hardship refunds should be considered, see reference IRM 3.17.79.3.3(2) , Issuing Hardship Refunds

    3. Prepare Form 3753, Manual Refund Posting Voucher.

      Note:

      Refunds of $100 million dollars and over require the Form 3753, Manual Refund Posting Voucher - See reference IRM 3.17.79.3.6, Manual Refunds $1 Million or More and $10 Million or More.

  5. Refunds to be processed within 5–10 days. When necessary for the urgent issuance of a refund, prepare Form 5792, Request for IDRS Generated Refund. The refund request can be efaxed to the Submission Processing Center (SPC) Manual Refund function.

    1. The requesting office authorized approving official must sign and have a current signature on file with the SPC Certifying Officer. See reference at IRM 3.17.79.3.5 , Employees Authorized to Approve Requests for Refunds.

    2. The Approving Official is responsible for the validity of each refund requested. The request must be made directly to the Manual Refund function.

    3. The request is supported by e-mailing the necessary documentation to the Manual Refund function organizational mailbox.

      Note:

      The E-mailed Form 5792 and Form 3753, Manual Refund Posting Voucher will be considered as original documents. It will no longer be necessary for the original forms to be sent via overnight mail to the Accounting function.

    4. These requests are for taxpayers who will suffer significant hardship if their refund is not processed within 5–10 days. Otherwise follow normal procedures if this accelerated time frame is not required.

    5. Do not initiate a manual refund if the case can be cleared through Enterprise Computing Center (ECC) - Martinsburg in 2 cycles.

  6. Prior to issuing manual refunds, initiators must review account information and take actions such as:

    • Determine if the account is subject to offset by Bureau of the Fiscal Service Treasury Offset Program (TOP) or other tax obligations. See IRM 21.4.4, Manual Refunds and IRM 21.4.6, Refund Offsets.

    • Use appropriate hold codes or posting delay codes as applicable.

    • Use TC 570 with credit transfers.

    • Enter appropriate computer condition codes (CCC) with an original return.

    • Use IDRS to ensure no other site or employee has issued a duplicate refund (TC 840), TC 971 AC 664, or that a refund has already generated (TC 846). The presence of a TC 971 AC 664 indicates that a Form 3753, Manual Refund Posting Voucher is in process. If a generated refund will be issued within two cycles, do not issue a manual refund. It is necessary that prepaid credits claimed by the taxpayer are available for refund and that the taxpayer does not have any outstanding balances. See IRM 21.4.4, Manual Refunds, IRM 21.4.5, Erroneous Refunds and IRM 21.4.6, Refund Offset.

    • Research freeze codes or IDRS control bases assigned to another IRS employee. If accounts are controlled, take no further action to release the freeze or control base without contacting that employee first. See IRM 21.4.4, Manual Refunds.

    • A -U Freeze (Erroneous Refund Freeze) requires contact with the Erroneous Refund function and documentation of approval by the Erroneous Refund function in the remarks section of the Form 5792/Form 3753, Manual Refund Posting Voucher. Master File displays a TC 844 at times with a TC 700, Document Code 58 in the DLN. These accounts are being monitored by the Erroneous Refund function (SP Accounting Operations) to recover an unassessed erroneous refund. The TC 700 Document Code 58 is input by Accounting to prevent erroneous billing notices and may compensate injured taxpayers from a general ledger account. Transcripts (TRANS 844) generate to the Erroneous Refund function for applying credits that become available on accounts at the controlling SP Center.

    • Review IMFOL/BMFOL. Determine whether a direct deposit was already issued to a bank account.

    • Ensure erroneous refunds are not released during BMF accelerated cycles (generally occurs during the end of May, Cycle XXXX, September and October). Refund intercepts (stopping refunds via IDRS CC NOREF or HAL) are not possible during accelerated cycles.

  7. Accounting employees will report feedback to initiators when their actions cause erroneous refunds to occur. This is to ensure corrective actions are taken by originator's management officials.

  8. Initiators must control and monitor (management must also perform a review of this action) the account until the TC 840 posts. In some cases, particularly with Form 3753, Manual Refund Posting Voucher, it may take up to four (4) weeks for the TC 840 to post. However, the actual refund check is mailed within 2-3 days of initiating and certifying the manual refund. If a TC 846 is not present on an IMF account, and the account meets the refund hold criteria, the refund may be able to be stopped with NOREFP. See IRM 3.17.79.2.1(10) . If TC 846 appears, originators must do one of the following:

    Note:

    TC 846 on IMF tax accounts cannot be intercepted. Implement Erroneous Refund procedures immediately.

    1. Contact the Manual Refund function at the Submission Processing Center. Determine whether the manual refund can be stopped.

    2. Input CC NOREF to stop the generated (TC 846) refund. Valid for BMF tax accounts only.

    3. Contact the Notice Review function in the appropriate Submission Processing Center to stop the refund.

Actions Required of Initiators Before Requesting Refunds
  1. Initiators of manual refunds must always:

    1. Secure supporting documentation to show (1) the taxpayer is entitled to the amount claimed and (2) the taxpayer has not previously received the refund amount.

    2. Research accounts to ensure the refund is not pending on Master File (PN TC 846 or TC 840).

      Note:

      Ensure a Refund Hold has not been applied to the account resulting in delay of the TC 846 generation. Refer to IRM 3.17.79.2.1(10) for information regarding refund hold.

      With accelerated refund processing, there are conditions under which accounts will not reflect the refund transaction (TC 846) upon settlement of the account. IMF will systemically prevent the refund transaction from generating. IMF will systemically generate the refund transaction (TC 846) when the refund hold expires.

      • A refund hold will be applied through Master File processing of the account, the account meets Priority Refund Transcript criteria (Refund, Refund-E, Refund-S, $1M, and $10M). The accounts will reflect a TC 971 AC 805 and a TC 570 with blocking series “55555” which indicates the refund hold has been applied. The hold will systemically expire 4 business days after the TC 971 AC 805 date.

      • A refund hold will be applied when through Master File processing of the account, the account meets criteria to issue CP 12, 16, 21, or 24. These accounts will be processed during the weekly processing on Thursday. The accounts will reflect a TC 971 AC 804 and a "TC 570" with blocking series "55555" indicating a refund hold has been applied. The hold will systemically expire 7 calendar days after the TC 971 AC 804 date.

    3. Input appropriate hold codes, when necessary. If hold codes are not input by initiator, Accounting will reject the request see IRM 3.17.79.3.2.2.

    4. Verify the presence of the account and ensure sufficient credit is available on the module to issue the refund. Ensure refund is issued from the correct module and account (for example, erroneous credit offsets are moved back to the correct year or taxpayer).

    5. Verify that the taxpayer has no outstanding liabilities. Research account records (MF, NMF, and IDRS) for all taxpayers and accounts involved. Research IDRS for a TC 130 ("V" Freeze) or MFT 31 indicates obligations on Master File. When an outstanding balance liability exists, the amount of the refund is reduced by the amount of the liability (plus accruals). Debit modules must be satisfied before a refund is issued. Offset capability is lost when manual refunds are issued.

      Note:

      Manual refunds marked "Offset Bypass Refund" do not require verification by Accounting to satisfy taxpayer's outstanding tax liabilities. Refer to IRM 21.4.6, Offset Bypass Refund and IRM 3.17.79.3.17, Offset Bypass Refunds Log, for further instructions.

    6. Verify that the Refund Statute Expiration Date (RSED) has not expired. The RSED is the later of 3 years from the Return Due Date (RDD) or 2-years from the payment date.

    7. Research IDRS for the presence of a TC 520, litigation pending ("W" freeze) or Bankruptcy ("V" freeze), Criminal Investigation (CI) Refund Scheme ("Z-" ≡ ≡ ≡ ≡ or "-Z" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ), Examination (TC 810) involvement and freeze codes. If CI freeze conditions are present, follow Center direction to refer to the Criminal Investigations Scheme Development Center (CI-SDC). Litigation pending or bankruptcy cases should be reviewed by the Compliance Services function designated for your Center prior to release.

  2. Initiators must:

    1. Provide Submission Processing Center (SPC) Manual Refund function with digital signatures (Form 14031, Manual Refund Signature Authorization Form) - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    2. Maintain signature lists and provide updates to the Manual Refund function when personnel changes occur (retirement, change in management, etc.

    3. Research and update IDRS when taking actions

    4. Take extreme care to research accounts prior to requesting any manual refund as explained in IRM 21.4.4, Manual Refunds.

    5. Provide supporting documentation and identify the erroneous refund if one should occur per IRM 21.4.5, Erroneous Refunds.

  3. Initiators must ensure all necessary actions are taken to prevent erroneous refunds or notices.

    1. Initiators will take follow-up action, including "stop notice," as necessary. See IRM 21.4.4, Manual Refunds.

    2. Initiators must review for Refund Holds, and pending refund indicators (PN) on IDRS to prevent duplicate/erroneous refunds (TC 840) or generated (TC 846). If there is a TC 846 on the account (IMF only), a NOREF cannot be input. Processing routines for Form 3753, Manual Refund Posting Voucher manual refunds do not allow refunds to be intercepted prior to issuance. These requests should be used only in very rare and unusual circumstances.

    3. Employees will Monitor accounts daily and weekly until the manual refund (TC 840) posts to Master File and the account is in ".00" balance. Employees will use documentation as designated by governing BOD related IRM (Case Control Activity CCA) i.e., the Integrated Automation Technology tool (IAT) guidelines in IRM 21.4.4, Manual Refunds must be followed for initiating and monitoring manual refunds.

    4. Managers are required to confirm employees are leaving their IDRS Control Bases open after refunds are input and are properly monitoring accounts until refund transactions post through use of the IAT, Erroneous Manual Refund Tool (EMT) guidelines are in IRM 21.4.4 , Manual Refunds. Also, managers are required to document the review of the monitoring action. Managers will review through use of the IAT, EMT, process.

Manual Refunds for Unprocessed Original Returns
  1. Manual refunds can be issued for unprocessed original returns for both IMF and BMF tax accounts in rare and unusual circumstances (e.g. hardship, systemic limitations exceed IDRS capabilities) and only when the tax form has been verified by the Input Correction operation. See IRM 3.12.2.3, Special Procedures (2), IRM 3.12.3.22.4.3, Correction Procedures (EC 260) (5), and IRM 3.12.179.43(6).

  2. Supporting documentation must include a copy of the tax form and the Input Correction function (i,e., Rejects, Unpostables and ERS) IDRS generated screen print. The print must clearly display CCC "O" and the refund amount. The tax form copy must show the entity (name, address) and refund amount. See additional procedures in Error Resolution BMF IRM 3.12.38.5.4, Manual Refunds and IMF IRM 3.12.37.25.5, Manual Refunds.

    Note:

    Refunds for Forms 1099-OID or Form 1099-MISC must be generated systemically. If a manual refund request with a Form 1099-OID or Form 1099-MISC is received, Accounting should reject the manual refund per IRM 3.17.79.3.2.2.

  3. Accounting will process manual refund requests for Form 8038CP Return for Credit Payments to Issuers of Qualified Bonds prior to the return being processed providing all supporting documentation is provided. Supporting documentation to include the following:

    • Excel spreadsheet with the calculated refund amount

    • Photocopy of the Form 8038CP edited "Copy Do Not Process"

    • Credit interest calculation if applicable

    • Refund amount edited on the side of the document

      Note:

      The refund request must match both the amount edited on the side of the document and the refund amount on the Excel spreadsheet.

Reporting Manual Refunds

  1. Manual Refund Inventories: Each Center is responsible for reporting the volume of Manual Refund receipts on a weekly basis utilizing the MISTLE report. All manual refund documents received in the Accounting function must have the Business Operating Division (BOD) indicated.

    1. The refund volumes will be reported according to the initiating BOD’s that are indicated on the MISTLE report.

    2. See IRM 3.30.124, Center Monitoring Reports for instructions on how the report should be completed.

  2. Manual Refund Paper Check Volumes: Accounting Headquarters gathers information on the amount of manual refunds processed as paper checks for IDRS Generated refunds (Form 5792 ), PHOREF and Non-IDRS Miscellaneous including URF and XSF (Type A) refunds. Therefore, monthly reporting from the sites is required.

    1. HQ’s will send a reconciliation spreadsheet to the sites monthly. Each site is to validate whether or not the schedules were processed for the month that BFS has reported on the bill.

    2. Responses are due back to HQ’s within three business days of the request.

    3. Send the response via E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to: Cathy.R.Andrews@irs.gov.

  3. Manual Refund Fiscal Year Volumes: to keep track of resource utilization and analyze program effectiveness, the total volume of manual refunds processed and expenditures are required.

    1. Use the “FY (XX) Manual Refund Volumes and Amount” report that can be obtained from the Submission Processing, Accounting and Tax Payment Branch (SP ATP Branch), SharePoint site https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx within the Manual Refund Misc. Documents folder.

    2. This information is to be reported, on a quarterly basis, no later than the 15th day of the month following quarter end.

    3. The tabs are site specific. Complete the quarterly information and send the report via E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to: Cathy.R.Andrews@irs.gov.

Reporting of Manual Refunds without Open Control Base
  1. Every manual refund that is rejected due to a missing open control base must be recorded and maintained.

    Note:

    Manual refunds that are being rejected due to OTHER reasons are NOT to be included in this report. (For example, if rejected as: Incomplete, inaccurate or no TC 840 pending, DO NOT include in the missing open control report).

  2. Each Accounting site is required to submit a report to Headquarters by uploading to the Erroneous Refund folder on the SP ATP Site indicated below no later than the 7th business day of the month following the report month (i.e., for the month of January, the report is due by the 7th business day of February).

  3. This report should include the TIN, MFT, Tax Period, the BOD of the initiator, and the Site/Center that initiated the manual refund.

  4. The operation must retain backup information for three months on the cases that are being reported.

    Note:

    Management must review reports for accuracy prior to uploading to the SP ATP SharePoint Site.

    See IRM 3.17.80.1.3.1, Monthly Reporting and Error Feedback for Duplicate, Manual, Erroneous Refunds (DMER), for instructions to upload the report to the SP ATP SharePoint Site.

Manual Refund Monthly Monitoring (10 Cases) - Submission Processing
  1. The Manual Refund 10 Case per Month Monitoring will be updated and reported to HQ monthly.

    • Capture and record data on 10 randomly selected manual refund requests (i.e., Form 5792, Request for IDRS Generated Refund or Form 3753, Manual Refund Posting Voucher).

    • Monitor the 10 cases for up to 30 days or the TC 840 posts. Determine if the cases are being monitored either by the manual refund initiator (or Team).

  2. The cases monitored will be listed by Business Operating Division (BOD).

  3. Cases Selected - This volume represents the number of Form 5792 or Form 3753, Manual Refund Posting Voucher randomly selected. The total of Cases Selected for all BODs should total 10.

  4. Cases Monitored - This volume represents the total number of manual refund requests monitored by the manual refund initiator (or Team), up to 30 days (or when the TC 840 posted).

  5. Cases Not Monitored - This volume represents the total number of manual refund requests that were not monitored by the manual refund initiator (or Team), up to 30 days (or when the TC 840 posted).

  6. Monitor for another posting of a TC 840 or TC 846 for the same amount of the manual refund, excluding any credit interest. Corrective action must be taken to intercept (CC NOREF) a duplicate refund if BMF. If a duplicate refund is identified on an IMF tax account, a CC NOREF cannot be input and Erroneous Refund procedures must be followed. Contact the originator when a CC NOREF (BMF) or erroneous refund action is needed and control the case to the originator.

  7. Each Accounting site is required to submit a report to Headquarters by uploading to the Erroneous Refund folder on the SP ATP SharePoint Site indicated below no later than the 7th business day of the month following the report month (i.e., for the month of January, the report is due by the 7th business day of February).

  8. This report should include the TIN, MFT, Tax Period, the BOD of the initiator, and the Site/Center that initiated the manual refund.

  9. The operation must retain backup information for three months on the cases that are being reported.

    Note:

    Management must review reports for accuracy prior to uploading to the SP ATP SharePoint Site. See IRM 3.17.80.1.3.1 , Monthly Reporting and Error Feedback for Duplicate, Manual, Erroneous Refunds (DMER) for instructions to upload the report to the SP ATP SharePoint Site.

Managerial Review - Monitoring Requirements
  1. This section refers to the SP "secondary" monitoring ONLY. Managers are required to review the case control activity listing generated for all SP initiated refunds. (See IRM 3.17.79.3.2(20)).

    Note:

    For managerial review requirements for originators of manual refund monitoring see: IRM 21.4.4 , Manual Refunds.

  2. The CCA listing is generated when the technician:

    • identifies W&I-SP in the Initiating BOD box

    • establishes an open control base under a unique team identifier. The status code must be "M"

  3. Managers will review this listing weekly. Randomly select a minimum of five per week.

  4. Ensure the employee has effectively monitored the posting of the manual refund to prevent duplicate or erroneous refunds.

  5. Each page of the age listing must include the reviewers' actions:

    1. date of review

    2. name of the employee monitoring

    3. annotations, such as:

      • TC 840 posted, No E/R

      • ER (if erroneous refund issued) and corrective actions taken to resolve

      • ADJ pending

      • Control activity updated to "840 Posted"

      • Closed control base, if TC 840 posted

      Note:

      The person conducting managerial review cannot be the same person who documented the refund transactions above.

    4. Indicate managerial review beside each case reviewed along with his / her initials and date on the manual refund listing.

    5. Hold each CCA listing for a period of three-months.

    6. Destroy the Manual Refund listing as classified waste after the three month retention period.

Employees Authorized to Sign Requests for Refunds

  1. Management appoints and delegates authority to specific persons to sign and authorize manual refunds (Form 3753, Manual Refund Posting Voucher and Form 5792, Request for IDRS Generated Refund (IGR)).

    1. Employees authorized to sign manual refund requests must not be the same employee authorized to adjust and/or initiate a request for manual refund on any one refund transaction for a taxpayers account.

    2. Also see IRM 3.17.79.1.7, Authorized Signatures and Delegations of Authority.

  2. All Heads of Office (Directors, Area Directors, Field Directors, Executive Directors, Local Taxpayer Advocate (LTA), National Taxpayer Advocate (NTA), etc.) must submit the latest revision of Form 14031, Manual Refund Signature Form to Submission Processing Center, Accounting, Manual Refund Function (Refund Disbursement Team) delegating those persons authorized to sign and approve manual refund requests. New requests should be submitted to the appropriate submission processing site’s accounting operation for processing (see chart below). Persons delegated to sign manual refund requests at multiple site locations, must submit a Form 14031, Manual Refund Signature Form to each Center to gain access. The Form 14031, Manual Refund Signature Form must contain the authorized manual refund approver information in Section II of the Form 14031, Manual Refund Signature Form with the accompanying digital signature. E-mail (see chart below) the Form 14031, Manual Refund Signature Form in PDF file format to the Submission Processing Center, Accounting, Manual Refund Function’s Organizational Mailbox located at the servicing Center (see chart below).

    Submission Processing Site Mailing Address Contact Information
    Austin Accounting Manual Refund Function
    3651 S Interregional HWY 35 - Stop 6263
    Austin, TX 78741
    Phone: 737-800-5086
    Alternate Phone: 737-800-5003
    *W&I SP F14031 AUSTIN
    Fresno Accounting Manual Refund Function
    5045 E Butler Ave - Stop 37103
    Fresno, CA 93727
    Phone: 559-454-6194
    *W&I SP F14031 Fresno
    Kansas City Accounting Manual Refund Function
    333 W Pershing Rd - Stop 6250 P-6
    Kansas City, MO 64108
    Phone: 816-499-5890
    *W&I SP F14031 Kansas City
    Ogden Accounting Manual Refund Function
    1973 N Rulon White Blvd M/S: 6250
    Ogden, UT 84404
    Phone: 801-620-7338
    *W&I SP F14031 Ogden
  3. The Manual Refund function must 100 percent review the Form 14031, Manual Refund Signature Form for accuracy and to ensure all required data is present as indicated on the Form 14031, Manual Refund Signature Form instructions.

    1. Per Delegation Order 3-1 (formerly DO-40), the Form 14031, Manual Refund Signature Form, Section III, must contain the signature of the Head of Office (Area, Executive Director, Field Director, LTA, NTA, etc.) of the requesting office. This authorization cannot be re-delegated - See IRM 1.2.42.2 for Delegation Order 3-1 (Rev. 2), which gives authority to approve the DISBURSEMENT of funds.

    2. The Form 14031, Manual Refund Signature Form must be digitally signed with Valid digital signatures, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    3. The digital signature HoO name is stated in the Accounting Refund Function Spreadsheet (current spreadsheet) - See 3.17.79.3.5.2(2).

    4. New requests are processed by Accounting Operations within 2 business days (i.e., received date plus 1 business day) of receipt.

    5. The Accounting Operation Received Date is documented in Section IV (Accounting use Only box) on the Form 14031, Manual Refund Signature Form when received in the Manual Refund function.

    6. The Accounting Operation RSTRK(M) Input Date is documented in Section IV (Accounting use Only box) on the Form 14031, Manual Refund Signature Form when received in the Manual Refund function.

    7. Date fields (Section II, M and Section III, Q) must be left blank since the forms are digitally signed and the date is a part of the digital signature.

    8. The authorized approving official digital signature date and timestamp (Form 14031, Section II) must be on or before the delegating official (Head of Office) digital signature date and including timestamp (Form 14031, Section III).

    9. The pseudonym line is blank unless back-up documentation is attached as required per IRM 3.17.79.3.5(8)n), Employees Authorized to Sign Requests for Refunds.

    10. The Director or equivalent in Section III of the Form 14031, Manual Refund Signature Form IS NOT the manual refund authorizer in Section II on ANY Form 14031, Manual Refund Signature Form.

    11. The individual that is designated to act for the HoO types the head of office position title on Form 14031, Manual Refund Signature Form Section III, item N while serving in that capacity (i.e., acting Director of AM, acting Director Examination, etc.).

  4. A Form 10247, Designation to Act is valid in the absence of the Director or equivalent. An accurate and completeForm 10247, Designation to Act must be submitted with EACHForm 14031, Manual Refund Signature Form, when Section III of the Form 14031, Manual Refund Signature Form is digitally signed by a designated official. Ensure the following:

    1. The Form 10247, Designation to Act is digitally signed with a valid digital signature, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    2. The digital signature date (including timestamp) in Section III of Form 14031, Manual Refund Signature Form is within the From and To date on the Form 10247, Designation to Act when signed by a designated official.

    3. The Form 10247 , Designation to Act digital signature date (including timestamp) is prior to the From date on the Form 10247, Designation to Act.

    4. If the HoO submits a Form 10247, Designation to Act to designate an actor, ensure that the form is digitally signed by the existing HoO and If the existing HoO is not available, that the HoO at the next higher level digitally signs the request in their absence.

      Note:

      The current Accounting Refund Function Spreadsheet should be used to verify the existing HoO - See IRM 3.17.79.3.5.2(2).

    Reject all Forms 14031, Manual Refund Signature Form along with Forms 10247, Designation to Act with incomplete or inaccurate information.

  5. If a Form 14031, Manual Refund Signature Form is received and there is already an "ACTIVE" form on file, for the same individual in Section II, the new form is a duplicate and should be rejected. A removal request for an active Form 14031, Manual Refund Signature Form must be received prior to accepting a new Form 14031, Manual Refund Signature Form. Send notification, via E-mail, to the individuals in Section II and Section III, that the Form 14031, Manual Refund Signature Form is being rejected due to either the Form 14031, Manual Refund Signature Form is currently on file for a different BOD or Form 14031, Manual Refund Signature Form is currently on file for the same BOD.

    Note:

    EXCEPTION: The Accounting annual request for submission of new Form 14031, Manual Refund Signature Form is not part of this process.

  6. When the 100 percent review of the form is complete, forward to the designated employee with the capability to add employee profile restrictions using IDRS CC RSTRK(M). The designated employee should also review the Form 14031, Manual Refund Signature Form for completeness and accuracy prior to adding the profile restriction to the Manual Refund Authorizer through use of IDRS, CC RSTRK(M). When the profile restriction is completed the Manual Refund Authorizer will reflect on the IDRS RSTRK(M) listing. This action must be performed within 2 business days (i.e., received date plus 1 business day) of the Accounting Operation received date. The designated employee with IDRS CC RSTRK(M) must document the date the profile restriction action was taken in Section IV (Accounting Use Only box) on the Form 14031, Manual Refund Signature Form.

  7. A request for removal of an "Active" Form 14031, Manual Refund Signature Form should be submitted to the Accounting, Manual Refund function by the Head of Office by E-mail. In the absence of the Head of Office, the authorized approving official should request the removal. The request for removal should be received in Accounting within two business days (i.e., received date plus one business day) of the requested removal date. Accounting should remove the Active Form 14031, Manual Refund Signature Form within two business days (i.e., received date plus one business day) of request receipt. The Authorized Approving Official in Section II of the Form 14031 must be a management official (Non-bargaining employee). Section II of the Form 14031, Manual Refund Signature Form is authorizing the "REQUEST" for a manual refund.

  8. The Manual Refund function maintains a Form 14031, Manual Refund Signature Form file of all employees authorized to approve refunds. This file will contain the following information, which is included on the Form 14031, Manual Refund Signature Form :

    1. Section I, a: Name of the Submission Processing Center you will send Form(s) 3753/5792 to for processing

    2. Section I, b: Input month (written out) and year in which the signature will become valid

    3. Section II, c: Name of Authorized Manual Refund Approver (must be NBU)

    4. Section II, d: Title of Authorized Manual Refund Approver

    5. Section II, e: E-mail Address

    6. Section II, f: Mailing Address

    7. Section II, g: Telephone Number

    8. Section II, h: Business Operating Division

    9. Section II, i: Campus or Field Office Location (i.e., Fresno - AM)

    10.  

    11. Section II, j: Social Security Number (SSN) and SEID

      Note:

      May submit under separate cover. SSN is required for IDRS Manual Refund Restriction.

    12. Section II, k: Digital Signature of Manual Refund Approver in Section II, c above - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    13. Name of Authorized Manual Refund Approver

      Note:

      The printed name in Section II, c and digital signature name in Section II , k above must match exactly (including: upper and lower case, spacing, etc.).

      Note:

      The digital signature format used on Form 3753, Section V, item 1 and Form 5792, Section IV, item 4 must include a valid PIV digital Signature that includes the SEID and Name of the approving official on the active Form 14031 - Section II on file - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    14. Section II, l: Pseudonym Name (Print Only) (Copy of E-mail from Office of Privacy)

      Note:

      Approval E-mail from the Office of Privacy must state: Person’s legal name XXXXX approved to use pseudonym name XXXXX as of date XXXXX).

    15. Section II, m: Date

      Note:

      The Manual Refund Authorizer digitally signed date is no longer required, since the date is part of the digital signature.

    16. Section III, n: Digital Signature of Head of Office - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    17. Section III, o: Printed Name of Head of Office

    18. Section III, p: Printed Title of Head of Office

    19. Section II, q: Date

      Note:

      The Head of Office digitally signed date is no longer required, since the date is part of the digital signature.

    20. Section IV, r: Mail Form To:

      Note:

      The Mail Form To: information is no longer required since the documents are electronically submitted to Accounting.

    21. For Accounting Operations use only:
      Received date
      RSTRK input date
      Scan to SharePoint date (Not required)
      RSTRK removal date (Not Required)

    22. Section III contains the statement certifying that IDRS Combination Sensitive Command Codes are no longer authorized for the employee listed to sign requests or certify refunds is referenced in IRM 3.17.79, Accounting Refund Transactions and IRM 10.8.34, IDRS Security Controls.

      Note:

      Site functions are responsible to remove any IDRS Combination Sensitive Command Codes for authorized approvers prior to submitting Form 14031, to the Accounting function. The Accounting Operation, Unit Security Representative (USR) is responsible to add the manual refund approver to the IDRS Manual Refund Restriction list, by input of CC RSTRK (M) (Manual Refund Restriction via IDRS), after completion of the Form 14031, is 100% reviewed for accuracy and completeness. The Accounting Operation, USR is also responsible to input IDRS restrictions for authorized Certifying Officers. All Certifying Officers should be input to the CC:RSTRK (M) listing.

  9. The Manual Refund function will maintain a Form 14031 repository file, on the Submission Processing, Accounting and Tax Payment Branch (SP ATP Branch), SharePoint site. https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx

    Note:

    Forms 10247 (in PDF format) must be digitally signed also be maintained in the repository - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    1. The SP, ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access permissions request for the Form 14031 Authorizer link within the SP, ATP SharePoint site is restricted to designated personnel and the request for access must include; employee name with corresponding SEID, along with the designated option of either "Read Only" or "Contribute" indicated. Access permissions must be requested by a management official and submitted by E-mail to: Ronnie.Maldonado@irs.gov with a carbon copy to: Sarah.A.Stanton@irs.gov.

    2. The Form 14031, repository file instructions are located and accessible on the SharePoint site https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx. All original Forms 14031 in PDF format must be uploaded onto the SharePoint Site repository file upon acceptance in the Accounting function.

      Note:

      The SharePoint repository file must reflect the same information as the "ACTIVE" hardcopy maintained in Accounting. No modifications are allowed on the Form 14031, see para (3) above

      .

    3. Accessing the Share Point site, Form 14031 repository file, allows electronic verification of the manual refund approving official digital signature - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement. All paper Forms 14031, will be maintained and secured at each site and should be used for contingency purposes. When a Form 14031 is removed from the active approving official file, all inactive Forms 14031 will be maintained, secured and available for review by internal and external stakeholders and destroyed 6 years after revocation.

    4. A quarterly validation of Access Permissions to the SharePoint site, Form 14031, Manual Refund Signature Authorization Form repository file, will be requested by Headquarters via E-mail, to the Accounting operations, management official. The management official must validate the Access Permissions list provided and respond to headquarters via E-mail within the requested time frame.

    Note:

    The following naming convention will be used to upload the Form 14031 and Form 10247 (if applicable) to the ATP SharePoint site in PDF format.
    Form 14031: SEID, Last Name (example: 00ABC Jones).
    Form 10247 (if applicable): SEID, Last Name (Form 10247)(example: 00ABC Jones (Form 10247).

  10. The uploaded documents will be stored by calendar year (i.e. 2017, 2018, 2019, etc.) and will be destroyed 5 year(s) after the end of the processing year.

    Note:

    The processing year will consist of January 1 - December 31, if the processing year ends on a weekend or Holiday, then forms will be destryoed on the next business day.

  11. Refund requests originate in all Sites, Areas, Territories or other field offices. It is the responsibility of the Directors and Heads of Office (including National Directors of Appeals and Taxpayer Advocate Service), of the requesting office, to establish and enforce internal controls. Please see IRM 1.4.6.3(6), Responsibilities of Service Officials Managers and Employees, which describes how to maintain effective controls to prevent fraud, waste or abuse of Government resources and mismanagement of Service programs. This is also known as Separation of Duties. This requirement includes formality to delegate authority to appoint management officials authorized to sign manual refunds (Form 3753, Manual Refund Posting Voucher and Form 5792, IDRS Generated Refund (IGR)). It is the responsibility of Directors and Heads of Office (including the National Directors of Appeals and Taxpayer Advocate Service) to update lists of employees authorized to approve refund requests when personnel changes occur. Failure to do so may jeopardize or delay approval and issuance of requests for manual refunds by Submission Processing Accounting Operations.

    1. When the employee's authorization is revoked, the name must be withdrawn from the signature list in the Manual Refund Function.

    2. Form 14031 must be submitted to and accepted by the Manual Refund function when adding new employees prior to their approving requests for manual refunds. The Form 14031 should be submitted to Accounting within 2 business days (i.e., received date plus 1 business day) of the requested “active” date.

    3. Heads of Office Management Officials should update signature lists within 2 business days (i.e., received date plus 1 business day), when personnel changes occur. The Manual Refund function solicits, quarterly, from all Directors or Heads of Office located in their processing jurisdiction to purge the list of employees no longer authorized. This solicitation should occur quarterly (refer to dates in item (6) above).

      Note:

      A 100 percent review of the quarterly validated listings and the RSTRK(M) listing must be performed quarterly by comparing all active Forms 14031 to the Head of Office quarterly validated listings and the RSTRK(M) listing. The RSTRK(M) listing must also reflect all active Certifying Officers with a FMS Form 210CO Designation of Certifying Officer on file. Ensure the active FMS Forms 210CO Designation of Certifying Officer on file are compared to the RSTRK(M) listing when performing this review. This review must be performed upon receipt of all Head of Office quarterly validations and prior to the applicable quarterly completion date requirement as listed see IRM 3.17.79.3.5.2(9). The review must be documented and maintained for a period of 90 days.

      Note:

      The review should be performed by other than the individual maintaining the Form 14031 file, RSTRK(M) list and quarterly Head of Office Validations (Internal Control Separation of Duties). The reports analyst cannot maintain the Form 14031 file.

    4. The SPC, Accounting Operation, management official must submit a quarterly memorandum to: Director, Submission Processing: Attn: Headquarter (HQ) analyst for IRM 3.17.79, Ronnie.Maldonado@irs.gov with a carbon copy to: Cathy.R.Andrews@irs.gov. This memorandum must state the following: This is to certify the quarterly Head of Office validation of manual refund Approving Officials, the required 100 percent review of the quarterly Head of Office validated listings and the RSTRK(M) listing is complete. Submit the quarterly memorandum certifying completion of the Head of Office quarterly validations and completion of the quarterly 100 percent review of the quarterly Head of Office validated listings and the RSTRK(M) listing no later than January 1, April 1, July 1, October 1.

      Note:

      Any discrepancies identified while performing the 100 percent review of the quarterly Head of Office validated listings and the RSTRK(M) listing must have documentation of findings, all corrective actions taken and maintained with the quarterly Head of Office validation file.

  12. Directors (Appeals and Taxpayer Advocate Service for example) provide guidance to their field offices regarding authorized signatures for the purpose of approving manual refunds.

    1. Directors of Appeals request manual refunds and apply existing criteria, e.g., refunds over $1 million, refunds issued to one spouse, and other systemic limitations.

    2. Initiators of manual refunds in Appeals and Taxpayer Advocate Service must be properly trained and take the same precautions (research, case control and monitor accounts) to prevent duplicate refunds.

    3. All initiators will be held to the same level of management scrutiny and responsibility to maintain internal controls and follow all IRM requirements.

  13. The Manual Refund Function reviews the approving official's signature on the manual refund posting voucher (Form 3753, Manual Refund Posting Voucher or Form 5792), before preparing the Secure Payment System (SPS)/Check Payment Schedule or Form 1166, Voucher and Schedule of Payments.

    1. If the request contains an unauthorized signature, the Manual Refund Function will reject, see IRM 3.17.79.3.2.2. However, Submission Processing Center personnel are reminded to please exercise good judgment in the rejection of these cases.

    2. If the refund involves a hardship case, Taxpayer Advocate Service case, or a large refund which will result in the Service paying a large amount of interest, the Certifying Officer will call area involved to resolve signature concern to allow processing of manual refund request.

    3. The receiving Submission Processing Center contacts the Submission Processing Center having jurisdiction over the local area initiating the Form(s) to verify the person who signed the forms is authorized to do so.

    4. If the person is an authorized official, process the refund as outlined above.

    5. If the person is not authorized, reject (See IRM 3.17.79.3.2.2).

    Note:

    The authorized Certifying Officer may not sign the Form 1166, Schedule of Payments nor certify through SPS, if he or she has also signed the request for refund (Form 3753 or Form 5792). Separation of duties and internal control requirements must be considered before authorizing Certifying Officers to approve Form 3753/Form 5792.

  14. A Non-Master File abatement on an Appeals case may take place in a local office, not under the jurisdiction of the Submission Processing Center, where the related account is filed. When this occurs, the local office will route Form 1331 (for abatement), and Form 3753, Manual Refund Posting Voucher or Form 5792 (for the refund portion), to the Submission Processing Center maintaining the account. The management official signing the Form 1331, Form 3753, Manual Refund Posting Voucher or Form 5792 in the originating or field offices, must be on the list of authorized officials to sign manual refunds. The list of management officials is maintained by the Submission Processing Center.

  15. Non-Master File is centralized to Kansas City. New assessments and or documents that must be established on NMF should be sent to Kansas City using the following address:
    Kansas City Submission Processing Center
    Accounting NMF
    333 W. Pershing Rd. - Stop 6263 P-6
    Kansas City, Missouri 64108

  16. Further information is available in IRM 1.4.2, Monitoring and Improving Internal Accounting and Administrative Controls.

Form 14031 and Form 10247 Monthly Review
  1. A monthly review of all Forms 14031, Manual Refund Signature Form, Form 10247, Designation to Act (if applicable) and CC RSTRK List must be performed to ensure:

    Note:

    This review is not the same review stated in IRM 3.17.15.6.13.1, Form 14031 Manual Refund Signature Authorization-RSTRK(M) Listing and should be conducted by someone other than the Reports Analyst.

    • all Forms 14031 are being captured (Hard copies and Soft copies).

    • all Forms have the same information.

      Note:

      The Hardcopy and Softcopy should be exact copies of each other.

    • all the Form 14031 authorizers are on the RSTRK Listing.

      Note:

      The RSTRK Listing should be dated as of the review date.

      .

    • the current HoO or designated individual (if applicable) are specified in the Accounting Refund Function Spreadsheet - See IRM 3.17.79.3.5.2(2).

    • the digital signature timestamp information in Section III, item N of the Form 14031, Manual Refund Signature Form is not prior to the timestamp information in Section II, item K (if signed in the same day).

    • the authorizer’s digital signature timestamp on the Form 14031 Section III, Item N is on or after the digital signature timestamp on the associated Form 10247.

    • the From date on the Form 10247, Designation to Act is on or after the current HoO digital signature date.

    • the HoO in Section III, item N is not the same individual as the refund authorizer in Section II, item K.

    Copies of the RSTRK listings and findings (if any) will be documented and maintained in a file for internal and external stakeholders for a period of two years from the date of the review. Documentation will include the RSTRK List, Form 14031, and Form 10247. The review should be performed by someone other than the individual maintaining the file (Internal Control Separation of Duties).

Quarterly Head of Office Validation
  1. All SPC, Accounting Operations will solicit each Head of Office (HoO) by E-mail, to verify that each authorizer of Manual Refunds is actively approving or signing manual refunds. This action will be performed on a quarterly basis after each annual submission.

  2. The Accounting Refund function will create a spreadsheet (PDF format) listing the current Head of Office, the designated individual (if applicable), and the employees delegated to authorize manual refund requests for the specified BOD

  3. Annually create an E-mail and distribute to each applicable HoO, no later than November 30. This is to request new submission of Form 14031, Manual Refund Signature Form for employees authorized to approve manual refunds with an effective date of January 01, XXXX. Additionally, and on a quarterly basis after the new submission, create an E-mail for distribution to each applicable HoO to validate employees on the current authorization list are and will continue to be acting as a manual refund authorizer, include "From and To" dates indicated as follows for the quarter relevant to the E-mail validation request:

    • Email request for validation issued no later than February 28, validation for the second quarter dates should reflect as: From: April 01, XXXX To: June 30, XXXX .

    • Email request for validation issued no later than May 31, validation for the third quarter dates should reflect as: From: July 01, XXXX To: September 30, XXXX.

    • Email request for validation issued no later than August 31, validation for the fourth quarter dates should reflect as: From: October 01, XXXX To: December 31, XXXX.

  4. The quarterly HoO E-mail validation request should include the following statements:
    If removal of an Authorized Approving Official is requested, they will be removed within 2 business days (i.e., received date plus 1 business day) of receipt of the request. If you are designated as an "Acting" official please include a digitally signed original PDF format copy of Form 10247, Delegation to Act with your validation response.

  5. All quarterly HoO validations should be confirmed by E-mail with the HoO digital signature reflected on the PDF listing provided to each originating SPC Accounting Operation that initiated the request.

    1. The Accounting Operation will maintain the quarterly E-mail validations in a file, consisting of the original E-mail HoO validation request, the digitally signed Head of Office validation list, the Head of Office E-mail validation response, along with a copy of the Accounting Refund Function Spreadsheet (dated as of the last day of validation).

    2. This file is to be maintained in a secured area, available for review by internal and external stakeholders and destroyed 6 years after the quarterly validation date.

    3. The Form 14031, Manual Refund Signature Form must be digitally signed with a valid digital signature, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened.

      Note:

      The systemic validation process can be verified by a quick pop up box on the lower right corner of the screen that states: Validating all Signatures when the PDF document is opening.

  6. A Form 10247, Designation to Act is valid in the absence of the Director or equivalent. An accurate and completeForm 10247, Designation to Act must be submitted with EACHForm 14031Manual Refund Signature Form, when Section III of the Form 14031 is digitally signed by a designated official. Ensure the following:

    1. The digital signature date (including timestamp) in Section III of Form 14031, Manual Refund Signature Form is within the From and To date on the Form 10247, Designation to Act when signed by a designated official.

    2. The digital signature date in Section III of Form 14031 , Manual Refund Signature FormIS NOT prior to the digital signature date (including timestamp) signed by the Head of Office (HoO) on the Form 10247, Designation to Act.

    3. The Form 10247, Designation to Act is valid in the absence of the Director or equivalent. If during the quarterly validation process the HoO submits a Form 10247 to authorize an actor, the Form should be signed by the existing HoO. If the existing HoO is not available, the HoO at the next higher level will digitally sign the request in their absence. The listing of current Head of Office and the employees delegated to authorize manual refund requests for the specified BOD referenced in IRM 3.17.79.3.5.2(2), should be used to verify the existing HoO.

    4. If the HoO submits a Form 10247, Designation to Act to designate an actor, that the form is digitally signed by the existing HoO and If the existing HoO is not available, that the HoO at the next higher level digitally signs the request in their absence.

      Note:

      The current Accounting Refund Function Spreadsheet should be used to verify the existing HoO (See IRM 3.17.79.3.5.2(2)).

    5. The Form 10247, Designation to Act must be digitally signed with a valid digital signature, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened.

      Note:

      The systemic validation process can be verified by a quick pop up box on the lower right corner of the screen that states: Validating all Signatures when the PDF document is opening - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

  7. If the Form 10247 is applicable and not received with the quarterly validation send a follow-up E-mail requesting one using the following statement:

    The attached listing reflects your Head of Office signature in a designated official capacity (Acting). Please provide an original Form 10247,Designation to Act, in PDF format (digitally signed) (See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement) by the existing HoO no later than the Beginning of Business (enter last date of current quarter here) or all Forms 14031 Manual Refund Signature Authorization reflected on the attached list will be removed and the Authorized Approvers on the attached list will no longer be valid as of ( enter first day of quarterly validation request here), If the Form 14031 is removed, we will not accept Manual Refund Form 5792 and/or Form 3753, Manual Refund Posting Voucher as of (enter first day of quarterly validation request here) with any signatures reflected on the attached list. A new Form 14031 will need to be submitted if we do not receive a Form 10247 as requested.

  8. Reject all Forms 10247, Designation to Act are incomplete, have inaccurate information or that are not digitally signed.

  9. The E-mail validation confirmation must be received by the SPC, Accounting Operation by the beginning of business, 3 work days prior to the beginning of the quarter reflected on the E-mail validation request. This will allow for any follow up if validation was not received timely. If validation is not received by beginning of business 3 work days prior to the beginning of the quarter reflected on the E-mail validation, send a follow up E-mail with the following statement:

    An E-mail request was previously sent to your office on (enter date of E-mail), for verification and validation of all Authorized Approvers of Manual Refund Form 5792 and/or Form 3753, Manual Refund Posting Voucher. We have not received your validation reply. If your validation of the attached list of Authorized Approvers of Manual Refunds is not received in our office, via E-mail reply containing your digital signature on the PDF file by the Beginning of Business (enter last date of current quarter here) the Form 14031 Manual Refund Signature Authorization Form will be removed and the Authorized Approvers on the attached list will no longer be valid as of (enter first day of quarterly validation request here), If the Form 14031 is removed we will not accept Manual Refund Form 5792 and/or Form 3753, Manual Refund Posting Voucher as of (enter first day of quarterly validation request here) with any signatures reflected on the attached list. A new Form 14031 will need to be submitted if we do not receive your validation as stated above.

2019 Processing Requirements for Form 14031, Manual Refund Signature Form
  1. Effective January 1, 2019, all Forms 14031, Manual Refund Signature Form must have the November 2016 version of the Form 14031 on file for manual refund approvers and digital signatures are mandatory.

    1. Each servicing Accounting Operation will request the re-submission of the new Forms 14031 (rev. 11-2016) to be effective January 1, 2019. This request will be issued via E-mail no later than November 30, 2018 and will be in lieu of the January - March quarterly validation referenced in IRM 3.17.79.3.5.2, Quarterly Head of Office Validation. The requirement for quarterly validation will continue. Quarterly validation confirms approvers on file are valid and should remain active.

    2. Along with the re-submission of Form 14031 (rev. 11-2016), mandatory use of digital signatures is in effect. To ensure the integrity of the digital signature, Form 14031 - Section II, item K and Section III, item N must include digitally signed by “SEID and Name” See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

      Note:

      Form 14031 originators must digitally sign the form by left clicking within the digital signature box, no other method of signing will be accepted.

    3. Only original (PDF format) Form 14031 (rev. 11-2016) should be sent to the servicing Accounting Operation, using E-mail (Encrypted) - See IRM 3.17.79.3.5(2). There will no longer be a requirement to mail Form 14031 to Accounting. Section IV, item R “Mail Form To” information will no longer be necessary to be completed. The PDF copy of Form 14031 is considered the original document.. Additionally, please contact the appropriate manager prior to sending so that you can ensure it will be received/processed on the day it is being sent.


     

    Note:

    The Form 14031 (rev. 11-2016) instructions state: Original signatures MUST be in BLUE ink. This form will be revised to remove that statement to be consistent with the mandated use of digital signatures. This form has been updated (11-2016) to enlarge the Section III digital signature field and the digital signature contains the date so item M and item Q are no longer “required” to be populated.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Form 14031 Processing Requirements for Unidentified/Excess Collections/Photocopy Fee Manual Refunds (Submission Processing ONLY)
  1. Unidentified/Excess Collections refunds are processed using reports from Control D. There will be Y/N indication to the right of the record for TOP offset.

  2. Photocopy Fee refunds are processed using reports from the PHOREF application.

  3. Form 14031 must be on file for all manual refund approvers authorized to approve Unidentified, Excess Collections and Photocopy Fee manual refunds and a digital signature is required. Therefore, a Form 14031 (rev. 11-2016) must be submitted with a digital signature. A “blue ink” signature will no longer be acceptable. The report used to approve these manual refunds can be scanned as a PDF document. The first page of the report must be digitally signed using the same procedure as outlined in IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

    Note:

    The digital signature in Item K of Section II of Form 14031 (rev. 11-2016) must match the digital signature on the first page of the report.

Manual Refund Digital Signature Requirement
  1. All Forms 3753, Forms 5792, Forms 14031, and Forms 10247 received in Accounting Operations require the same digital signature format as follows:

    1. Must be submitted to accounting in PDF format,

    2. Must have a VALID PIV Digital Signature and state US Government to the right of the signature when signing.

    3. Must include the SEID and Name of the signer (Example: 12DOE John Robin).

  2. The Accounting Operations function must also verify that the forms are systemically validated when the PDF file is opened.

    Note:

    The systemic validation process can be verified by a quick pop up box on the lower right corner of the screen that states: Validating all Signatures when the PDF document is opening.

  3. Any form received in Accounting Operations that does not meet the Digital Signature requirements above will be rejected back to the Originator.

  4. Additionally, the digital signers must be in the Manual Refund Accounting Spreadsheet dated as of the last quarter. If not, a valid Form 10247, Designation to Act must be associated with the request and be digitally signed by the Head of Office on the spreadsheet, or if not available, the Executive at the next higher level - See IRM 3.17.79.3.5.2(2).

  5. Click on the following link to access the digital signature setup procedures: https://organization.ds.irsnet.gov/sites/WISpManRefProject/_layouts/15/start.aspx#/Shared%20Documents/Forms/COReview.aspx.

Manual Refunds $1 Million or More and $10 Million or More

  1. Generally, large refunds of one million dollars or more are the result of a Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, or carryback losses. Each Submission Processing Centers (SPC) should make every effort to identify and manually issue these refunds within 45 days.

    Note:

    There is no allowable interest on a Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax since the return has not been filed. If the return has been filed, the Form 4466 is rejected.

    Review IRM 21.4.4, Manual Refunds, for the IDRS and other system limitations in the money amount fields due to the data element records and check printing stock at the Kansas City, Bureau of the Fiscal Service. IRM 21.4.4, Manual Refunds, provides dollar amount requirements to prepare Form 3753Manual Refund Posting Voucher, versus the IDRS Generated Refund, Form 5792. Form 5792 may not be appropriate in this situation.

    1. Analysis at Master File, Enterprise Computing Center (ECC) - Martinsburg, reveals an overpayment of $10,000,000.00 or more, principal and interest, the module is frozen from refunding or offset (and sets an -X freeze).

    2. Refund transcripts generate to the respective SPC for expedite account resolution.

    3. Output or Notice Review researches accounts and prepares Form 3753 , Manual Refund Posting Voucher when large dollar refund transcripts generate. Form 3753, Manual Refund Posting Voucher are submitted to Accounting.

    4. The "-X" freeze is released when a TC 840 posts with a dollar amount or if module balance becomes zero or debit. This occurs once the Form 3753, Manual Refund Posting Voucher is processed through ISRP to reflect posting of the manual refund issuance (TC 840).

    5. IRM 20.2.4.7.7, Overpayment Interest, Manual Refunds instructs all employees to review manual refunds over $1 million by an interest specialist prior to submitting to Accounting.

    6. IRM 21.4.4.4(6), Preparation of Manual Refund Forms, mandates that manual refunds $1 Million or more and contain credit interest be reviewed by a Technical function. See IRM 21.4.4.4, Preparation of Manual Refund Forms for additional information.

    7. In addition to the Compliance Frivolous Filer Program, the Scheme Detection Center (FDC) uses a multi-functional approach to decrease the number of refunds released that may be questionable. See also IRM 4.19.10.5, Questionable Refunds, and related processing in IRM Part 4, Examination.

  2. Submission Processing Accounting Operations prepares and certifies refund schedules (e.g., via Secure Payment System) to issue refunds of $10 million or more. When a taxpayer is entitled to a refund that totals $10 million or more, the following occurs:

    1. Returns are math verified for accuracy by the Reject function.

    2. A special search determines if the taxpayer has any outstanding MF, Debtor Master File (DMF), or NMF liabilities. If any outstanding liabilities are found, take action to offset available credit.

    3. If a "-L" freeze (AIMS indicator) is present on a module, research the account for the presence of a history item or activity code "MAAS (MMDDYYYY)." This indicates that a "quick assessment" has been requested, and that a new liability may be in the process of posting. If the assessment (TC 300 for other than .00) increase has not posted, contact Examination for the amount of the additional liability. Satisfy this liability prior to issuing a manual refund.

    4. If a -L Freeze and AIMS Status Code is other than 00 through 06 or 08

    5. Effective January 1, 2016, refunds that exceed $9,999,999.99 and under $100,000,000.00 may be processed systemically or by preparing Form 3753 Manual Refund Posting Voucher, and forwarding the complete case file to Accounting.

    6. Prepare SPS or Form 1166. Master File cannot post amounts in excess of $99,999,999.99. However, more importantly, the BFS, check processing equipment cannot process refunds via IDRS in excess of $99,999,999.99 due to check printing and check paper money amount field limits. If refunds exceed this limit, it must be issued as two or more refund checks. See IRM 21.4.4, Manual Refunds.

  3. Accounting reviews the case file for completeness and accuracy. Refer to IRM 3.17.79.4.1, Case Review and Command Code REFAP (Refund Approval).

$50 Million and Over or $500 Million and Over Refund Reports to Treasury

  1. Treasury and IRS CFO are required to be notified whenever they have a single refund or several refunds with aggregate total of $50 million dollars or more scheduled for payment on any given day.

    1. The Manual Refund Team will provide Treasury a two (2) day notification whenever a single refund or several refunds with an aggregate total of $50 million dollars have been received for processing.

    2. The Manual Refund Team will provide Treasury a five (5) day notification whenever a single refund or several refunds with an aggregate total of $500 million dollars has been received for processing.

    3. Submission Processing Centers will notify Treasury via E-mail when large dollar refunds meet respective thresholds, $50 million dollars and over or $500 million dollars and over. The Treasury and IRS Contacts below must be included in the E-mail notification:

    Treasury and IRS Contacts
    Office of the Fiscal Secretary, Office of Fiscal Projections
    • receipts@do.treas.gov

    • Tom.Mosimann@do.treas.gov

    • Braden.Wolvin@do.treas.gov

    • Vincent.Varma@do.treas.gov

    Office of the Assistant Secretary of Treasury, Office of Tax Analysis
    • funds.control@fms.treas.gov

    • Darius.Hall@fms.treas.gov

    • Louis.Smith@fms.treas.gov

    • Shadonna.Broaddus@fms.treas.gov

    • Mary.Rascoe@fms.treas.gov

    Headquarters CFO
    • &CFO:FM:A:S Revenue Systems & Analysis Section

    • Jeshal.Patel@irs.gov

    • Dan.W.MacDougall@irs.gov

    • Charles.A.Messing@irs.gov

    • Dianne.M.Wolfe@irs.gov

    Submission Processing, Accounting and Tax Payment Branch
    • Ronnie.Maldonado@irs.gov
      Cathy.R.Andrews@irs.gov

    Note:

    When Treasury requests Accounting to hold refunds beyond the five (5) day Treasury notification requirement, Headquarters must be notified. Contact HQ Accounting Services analyst by telephone and follow up E-mail to: Ronnie.Maldonado@irs.gov (240) 613-5903.

    with a carbon copy to: Cathy.R.Andrews@irs.gov

  2. This advance reporting requirement is due to Treasury's funds flow monitoring and is sent to the Fiscal Assistant Secretary, Office of Fiscal Projections, and the IRS CFO Office of Financial Revenue Systems, OS:CFO:R:S. See IRM 3.17.79.3.4, Manual Refund Report to Headquarters CFO - Weekly.

  3. The E-mail notification must include the following information:

    1. ACH/Direct Deposit
      IMF - Volume, Principle= Money Amount, Interest = Money Amount, Grand Total = Money Amount
      BMF - Volume, Principle= Money Amount, Interest = Money Amount, Grand Total = Money Amount

    2. Checks/Paper
      IMF - Volume, Principle= Money Amount, Interest = Money Amount, Grand Total = Money Amount
      BMF - Volume, Principle= Money Amount, Interest = Money Amount, Grand Total = Money Amount

    3. Fedwire
      IMF - Volume, Principle= Money Amount, Interest = Money Amount, Grand Total = Money Amount and Process date
      BMF - Volume, Principle= Money Amount, Interest = Money Amount, Grand Total = Money Amount and Process date

  4. As outlined in the Treasury Financial Manual (TFM) Volume 1, Part 4, the prior 2 or 5 day notification to Treasury will ensure funds are available to cover the refund amounts in the Federal Reserve.

    Note:

    In the event a manual refund is delayed due to the Treasury requirement (failure to notify timely or Treasury will not accept additional disbursements), inform all effected initiators of the delay immediately (Phone contact or E-mail). Only communicate with the initiators whose refunds will not be processed for the date included in the pre-notification memo or E-mail.

  5. When manual refunds of $10 million or more are issued maintain a file for possible future reference.

  6. Prepare and process manual Form 1166/Secure Payment System (SPS) refund schedules as outlined in IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

Refunds Held at Treasury Request

  1. When Treasury requests the Accounting Function to hold refunds, schedule and issue refunds on a first in and first out basis based on Treasury's threshold.

    Note:

    The Forty-five (45) day interest free period should always be taken into consideration when processing and scheduling refunds. See IRM 20.2.4, Interest, Overpayment Interest.

Taxpayer Refund Inquiry

  1. The Accounting Function should not receive taxpayer refund inquiries. In case this happens "DO NOT" give the taxpayer or their representative a specific Refund Schedule Date or use the word "Schedule" in your response. Once it has been determined that the caller is authorized to receive taxpayer information, use the following guidelines:

    If Refund is: Indicate:
    FEDWIRE Taxpayer should expect their refund within five (5) days.
    Direct Deposit Taxpayer should expect refund within two (2) weeks.
    Paper Check Taxpayer should expect refund within six to eight (6–8) weeks.

Direct Deposit Tax Refunds

  1. Business and individual taxpayers due refunds of $1 million or more for any single tax year may request a direct deposit refund (e.g., automatic) directly into their bank account. The Automated Clearing House (ACH) Screen in the Secure Payment System (SPS) used by Accounting to certify manual refunds is for use in hardship conditions. This is considered exception-processing, and is a risk of disbursement losses because of human intervention and potential error. However, ACH feature requires unique software screen access by Accounting employees and set-up administered by the Bureau of the Fiscal Service SPS software support staff.

  2. Treasury's Financial Organization Master File (FOMF) is designed to administer funds from Kansas City, Bureau of the Fiscal Service and the Federal Reserve Board (FRB). Per Headquarters Regional Operations Directorate, Bureau of the Fiscal Service (BFS), in June 2003, describes the FOMF as follows:

    1. Enterprise Computing Center (ECC) - Martinsburg, receives the FOMF from BFS via the Federal Reserve Board each month. The FOMF contains all current bank Routing Transit Numbers (RTN) and addresses.

    2. ECC uses this file to validate the RTNs for taxpayers that request an electronic funds transfer (EFT) or direct deposit refund. When BFS receives the IRS EFT refund files, BFS validates the files against the current FOMF.

    3. The Secure Payment System (SPS) includes enhancements that allows RTN verification during the certification of refunds. If the RTN fails validation the refund will be sent back to the IRS for correction or submission as paper check.

  3. The taxpayer must complete the appropriate documents if they desire a direct deposit refund. In rare instances, the Service may opt to use the SPS Screen FEDWIRE Same Day Pay Refund SPS screen.

  4. If the taxpayer's financial institution is not a member of the Federal Reserve System, the funds transfer is processed through a correspondent bank (Foreign or International) that maintains an account at a Federal Reserve Bank. These type of refunds are processed by the Accounting staff at the Centers that process International work (Ogden, Austin, Cincinnati). These types of refunds are considered exception-processing and occur on an as needed basis only.

  5. For example, and for any amount, business taxpayers file Form 8050Direct Deposit of Corporate Tax Refund (Rev. 12–2009) with their business tax return.

  6. IMF taxpayers requesting a Direct Deposit refund provide the pertinent information when filing Form 1040. The RTN and account information (savingsor checking ONLY) is entered directly on the Form 1040 by the taxpayer, and transcribed during data entry; no separate request forms are required.

  7. Federal Agencies or bureaus within Federal Agencies requesting Direct Deposits will provide the governing memorandum or agreement with all the pertinent information needed for the disbursement of the manual refund to be directly deposited.

    Note:

    An alert or official guidance from HQ should ALWAYS preclude special requests among interagency or bureaus, if not contact Headquarter Manual Refunds analyst.

  8. A Branded Prescription Drug Fee manual refund request, to be processed through direct deposit, will be received on a Form 3753, Manual Refund Posting Voucher. This request will have two documents attached. A “Letter of Overpayment” and “Amount Due to Covered Entity”. These documents are acceptable as supporting documentation for processing the manual refund. See IRM 25.21.1.13 for specific details related to the Branded Prescription Drug fee.

Form 8302, Electronic Deposit of Tax Refund of $1 Million or More
  1. Taxpayers may request a refund of $1 million or more by completing Form 8302 Electronic Deposit of Tax Refund of $1 Million or More.

    1. Form 8302 must accompany the taxpayer's tax return, Form 1045, Form 1139, amended return or claim (other than an original Form 1040, Form 1120 or Form 1120S).

    2. If taxpayers request a direct deposit refund of $1 million or more on an original Form 1120, Form 1120A or Form 1120S, they must file Form 8050 Direct Deposit of Corporate Tax Refund.

  2. The Form 8302 data elements (financial institution name, address, ABA, name and telephone number of bank officials) are required to certify in the Secure Payment System (SPS) via the Same Day Pay Refund option (e.g., also known as FEDWIRE).

    1. The Conditions Resulting in a Refund Check are listed on the Form 8302.

    2. Currently, FEDWIRE, Same Day Pay Refund requests continue to be considered on a case-by-case basis. Taxpayers must provide the additional supporting financial institution elements as stated in paragraph (2) above, in order for Accounting to process via the SPS, Same Day Payment Schedule. The pertinent financial institution information is necessary for input on the SPS screen used for Same Day Pay Refund requests.

  3. Taxpayers are not permitted to designate another person to receive their direct deposit refund. Powers of Attorney (POA) authorizing the taxpayer's representatives to receive the refund are disregarded unless the direct deposit is rejected.

  4. Requests for direct deposit refunds that do not meet either the dollar limits (e.g., $1 Million or More) or other requirements as cited on the Form 8302 or Form 8050, will be issued by paper check.

  5. The maximum dollar amount wired in a single payment message is $999,999,999.99. Treasury and IRS CFO Revenue Systems requires two-day or five-day notification whenever refunds scheduled to be paid on any given day, equals $50 million or more. Immediately prepare an E-mail notification to the Treasury contacts as listed in IRM 3.17.79.3.7.

  6. Advance notification must be provided to Treasury as outlined in the Treasury Financial Manual (TFM) 42000. Treasury must ensure funds are available to cover the large dollar refunds.

  7. Same Day Pay Refunds must be certified via Secure Payment System (SPS) Same Day Payment Schedule (SDPS) screen. The paper Form 1166 serves as a contingency plan in the event the SPS system is not available.

  8. Schedules are submitted to the Kansas City, Bureau of the Fiscal Service (BFS) via SPS.

  9. Forms 3753, Manual Refund Posting Voucher received in the Accounting Operations for a Same Day Pay Refund request without supporting or required information and/or attachments, (e.g., no Form 8302 or no supporting financial institution documentation required to certify via SDPS screen, etc.) may delay the refund.

    1. If the taxpayer fails to provide appropriate information, the initiator prepares correspondence confirming to the taxpayer the refund will be issued by paper check rather than by wire transfer or Same Day Pay method.

    2. Accounting (or a designee) will call the manual refund initiator to advise the taxpayer of the reason for the delay.

    3. If the taxpayer fails to provide appropriate information, the initiator prepares correspondence informing the taxpayer the refund will be issued by paper check rather than by wire transfer with discretion and time permitting, there may be instances when the initiator may telephone the taxpayer requesting the appropriate missing information to complete the certification process.

    Note:

    The Direct Deposit refund information is entered using the Automated Clearing House (ACH) Screen format via the Secure Payment System (SPS). This certification is performed by the Accounting Operations function only.
    FEDWIRE may be used when supporting documentation (e.g., letter or other formal documentation providing pertinent information, name and location of the financial institution, etc.) necessary to certify in SPS via the ACH Same Day Payment Schedule (SDPS) screen is information provided by the taxpayer. The SDPS feature is primarily reserved for foreign refunds and is left to Submission Processing Center management's discretion.

  10. Prepare the SPS or Form 1166 from the information on the Form 3753, Manual Refund Posting Voucher (refund amount) and the Form 8302.

    Note:

    Please use caution. Due to limited capabilities, FEDLINE cannot identify the taxpayer's name if a wire transfer is rejected. Two or more taxpayers, receiving the same refund amount, will not be included on the same schedule because of this limitation.

Federal Wire Transfers (FEDWIRE) and International Payments
  1. Foreign FEDWIRE payments to a correspondent bank must include the following on the SPS "Same Day Payment Schedule" screen, "Payment Detail" section:

    • ABA/RTN - (US Bank Routing Number)

    • Product Code -"BTR"

    • Depositor Account Number - (US Bank Account Number)

    • BBK Remarks - (up to 72 characters) Must include the following:
      Enter - "BBI="
      Foreign Bank SWIFT Code
      Foreign Bank Routing Number
      Foreign Bank Account Number

    • Payment Amount - Enter Refund $Amount

    • Payment Remarks One - Enter: MFT – Tax Period - ULC

    • Payment Remarks Two - Enter: Line # - US Bank SWIFT Code - Credit Interest $Amount

    • Type Code - "10"

    • Beneficiary Name - Taxpayer Name

    • Payee ID/TIN = Taxpayer TIN

      Note:

      The Society for Worldwide Interbank Financial Telecommunication (SWIFT) or International Organization for Standardization (ISO) code is the unique identification code of a specific bank.

    1. SWIFT Codes can be obtained from the taxpayer, domestic bank or BFS 816-414-2340.

      SWIFT Code is 8 or 11 characters
      4 characters -bank code (alpha only)
      2 characters -country code (alpha only)
      2 characters -location code (alpha and numeric)
      3 characters -branch code (optional fill-in, alpha and numeric)
      Example: Deutsche Bank, located in Frankfurt Germany
      Enter DEUTDEFF as the SWIFT Code
    2. When a Form 3753, Manual Refund Posting Voucher Manual Refund, foreign FEDWIRE (same day payment) request is received the Form 3753, Manual Refund Posting Voucher must include the following information:
      US Bank Name
      US Bank Routing Number
      US Bank Account Number
      US Bank SWIFT code
      Foreign Bank Name
      Foreign Bank Routing Number
      Foreign Bank Swift Code
      Foreign Bank Account Number

Payment Date and Holidays
  1. All Form 5792 and/or Form 3753, Manual Refund Posting Voucher manual refund requests are issued on the next business day following the schedule date, with the exception of the following:

    1. $10 million dollar and over are always issued on the Refund schedule date (same day as submission) if submitted to BFS prior to 12:00 p.m. Central time

    2. •Fed-wire requests are always issued on the Refund schedule date (same day as submission) if submitted to BFS prior to 4:50 p.m. Central time

  2. Refund payments are not made on official holidays observed by the Federal Reserve Bank of New York. The holidays are:

    1. New Year's Day

    2. Martin Luther King's Birthday

    3. President's Birthday

    4. Memorial Day

    5. Independence Day

    6. Labor Day

    7. Columbus Day

    8. Veteran's Day

    9. Thanksgiving Day

    10. Christmas Day

  3. Confirmed SPS refund data is received through Intra - Governmental Payment and Collection System (IPAC), RFC/Agency Link. A FEDLINE support listing is sent to the respective SPC.

  4. The support listing confirms receipt of the refund payment by the taxpayer. Verify receipt of both documents.

  5. Compare the schedule total on the support listing to the grand total amount on the refund schedule.

    1. If the amount differs, check the refund amounts on the SPS/Form 1166. If the refund amounts on the SPS/Form 1166 do not match the money amounts on the support listing (underpayment or overpayment), contact the RFC to resolve the error.

    2. If a taxpayer on the refund schedule is not shown on the support listing, the RFC sends a Form 1098, Schedule of Cancelled Checks, to the Agency Location Code (ALC) to report a rejected wire transfer payment. Immediately prepare an SPS/Form 1166 to issue a paper refund check. When this occurs, notify the taxpayer in advance.

    3. Compare the SPS/Form 1166 information (the taxpayer's name, bank name, ABA number and account number) to the support listing showing the same information.

      Note:

      If TYPE 12 payment, the information is on the "CMNT" line. If TYPE 10 payment, the information is on the "TO" , "RECV" , and "CMNT" lines.

    4. If the above information does not match, contact the RFC, Philadelphia at (855) 868-0151, Option 1 (Help Desk). The RFC, Philadelphia, must advise the financial institution of the erroneous wire transfer payment and the RFC, Philadelphia is responsible for reversing the payment.

  6. Non-receipt claims (Form 3911 and FMS Form 1133) are handled as outlined in IRM 21.4.4, Manual Refunds.

  7. Any questions about Form 8302 may be directed to the originator.

  8. The SPC must have current FMS Form 210, Signature Cards, on file with the RFC. The cards are maintained by the Manual Refund function and must be updated annually and anytime a change in Certifying Officer occurs. Signature cards for the wire transfer of refunds must be annotated "For FEDLINE Payments Only."

Erroneous Receipt of Funds from State Income Tax Levy Program (SITLP)

  1. The State Income Tax Levy Program (SITLP) is an automated levy program administered by SBSE Collections. Levy data is sent to participating states through Secure Data Transport (SDT). The tax debt is matched against the state income tax refunds and all or a portion is sent to IRS to satisfy the federal debt. The state then provides the IRS with the levy payment and data via SDT/paper check or Electronic Federal Tax Payment System (EFTPS). Currently, all states except North Carolina are using EFTPS to submit their payments. SITLP payments post with a Transaction Code (TC) 670 with a Designated Payment Code (DPC) 20 or 21.

  2. Erroneous receipt of funds from SITLP is rare.

  3. The W&I Submission Processing Campus in Kansas City process the paper checks. General procedures are located in IRM 5.19.9.2, State Income Tax Levy Program (SITLP) General. Accounting journal procedures are located in IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System.

  4. A list of the states currently participating in SITLP can be found in IRM 5.19.9.2, State Income Tax Levy Program (SITLP).

  5. If a state determines an erroneous levy payment was sent to the IRS (including payment due to identity theft), the state representative will contact the appropriate Campus Collections SITLP Coordinator when a refund situation is identified and will prepare a memorandum requesting the required adjustment. This memorandum will be mailed, faxed or efaxed to the Campus Collections SITLP Coordinator. The request will contain all entity information, as well as, the specific amount of the refund. See IRM 5.19.9.2.7, Refunding SITLP Payments.

  6. Use Bypass Indicator (BPI) '3' to prevent offset through the Treasury Offset Program. See IRM 21.4.6, Refund Offset.

Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax

  1. Receipt and Control Operation (RCO) receives and date stamps Form 4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax. Then RCO forwards stamped Form 4466 to the Accounting Operations for processing.

  2. Form 4466 will be transshipped to the appropriate Business Master File (BMF) processing site as outlined in the official Transshipment guidelines.

  3. When Form 4466 are received:

    1. Reject Form 4466 quick refund requests submitted for trusts or estates. Quick refunds for trusts and estates are not allowed.

    2. Rejected/disallowed Form 4466 for estates or trusts should be communicated to the taxpayers via IDRS Correspondex 1287C letter. Accounting will respond to correspondence returned to the function from taxpayer.

    3. Review documents and ensure Form 4466 submitted for processing is solely for corporate returns (IRC 6425, exception for corporations only). Per the Reg. 1.6425-1(b) (2), Form 4466 is not considered a claim for credit or refund.

    4. Expedite processing of Form 4466 is required. The refund must be issued within 45 days of the received date.

    5. Immediately upon receipt of Form 4466, use IDRS CC ACTON to place documents under case control. See IRM 2.3.12, Command Code ACTON. Control cases using activity code "Form 4466" .

  4. Reject Quick Refund requests submitted on Form 4466 for Foreign Investment Real Property Tax Act, Form 8288 and Form 8288A (FIRPTA, Ogden only) with a letter of explanation. The letter of explanation should contain the following information:

    We are sorry, but we are returning your Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax.

    Form 4466 does not apply when requesting a refund on Foreign Interest Real Property (FIRPTA) credits. You must submit Form 1120F, a copy of Form 8288A (copy B) signed by the IRS, and a copy of the Withholding Certificate to the Internal Revenue Service , Ogden, UT 84201.

    If you have any questions regarding FIRPTA payments, please write to the attention of the FIRPTA function or you may call them at 267–941–1000, this is not a toll free number.

  5. Review the Form 4466, and verify following items:

    1. TIME FOR FILING a corporation may, after the close of the taxable year before the 16th day of the third month following the close of the taxable year, file an application for an adjustment of an overpayment of estimated tax for such taxable year. An application under this subsection shall not constitute a claim for credit or refund. (Filing Form 7004 does not extend time for filing Form 4466, the Form 4466 will be considered timely if received the day following a due date which falls on a holiday or a weekend ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or if the envelope contains a timely date stamp which is prior to the due date). Hold in a suspense file all Form 4466 received up to two weeks prior to the close of the taxable year. Normal processing should begin on the first day after the close of the taxable year. If the tax year ending month is different than the established accounting period, initiate research of the Form 1128 file maintained by Entity Control. If a request or change of accounting period is submitted with Form 4466, Entity Control inputs Command Code BNCHG to correct the accounting period prior to issuance. Only the common parent, as agent for the consolidated group, may file a Form 4466 for members of an affiliated group that paid their estimated income tax on a consolidated basis (or expect to file a consolidated return for the tax year). See Regulations § 1.1502-75(d)(1).

      Note:

      If a subsidiary member of a consolidated group paid estimated income taxes separately for a separate return filing, that member who claims the overpayment must file Form 4466.

      A corporation filing under the Consolidated Return Regulations is not required to submit a Form 1128 or request a change in accounting period IF, AND ONLY IF, a statement is included with Form 4466 specifically stating that the corporation is filing under the Consolidated Return Regulations. The statement must cite the appropriate section of the Regulations 1.1502-76(c)(2) and 1.1502-75(d)(1). Reject the application if Form 1128, Request for a Change in Accounting Period, or a statement is not present.

    2. A Form 4466 is valid if line 8 is at least 10 percent of line 7, expected income tax liability, and at least $500.

      Note:

      Form 4466 is not considered a claim for credit or refund (justification for lines 5a and 5b).
      Determine if Line 7 is correct (Line 6 minus Line 4), if yes, then refund line 8.

      Note:

      All fuels must be claimed on the appropriate excise tax forms.

    3. Verify that there is a Master File account for each taxpayer.

    4. If the Form 4466 filer is a subsidiary of a corporation which elected to file a consolidated return, the filing period is that of the parent for credits included in the consolidated return.

  6. If Form 4466 is rejected:

    1. Access IDRS CC ACTON to update the activity code to "4466REJECT" .

    2. Prepare single Form 3753Manual Refund Posting Voucher, to input TC 840 for zero amount to release X Freeze Code when the return posts. Update control base to TC 840 input. Circle in red TC 770, to prevent "I" Freeze. The transaction code for zero will indicate a claim for refund was received but not processed.

    3. Send IDRS Correspondex Letter 1287C to the taxpayer. Update control base activity as: 1287CSENT.

    4. Close control base after Form 3753, Manual Refund Posting Voucher TC 840 .00 amount, 1287C letter sent, etc.

    5. Photocopy Form 4466 and return the original to the taxpayer along with the letter of explanation.

    6. Keep a pending case file containing the photocopy of rejected Form 4466, the 1287C letter, and any research for 90 calendar days, then destroy the case file.

  7. The date for filing Form 4466 coincides with the dates for filing corporate returns, which is on or before the 15th day of the 3rd month after the end of the tax year (but before the corporation files its income tax return). For instance:

    1. For calendar year corporations with a tax year that ends December 31, 2009, the due date would be on or before March 15, 2010.

    2. For a fiscal year corporation with a tax year ending October 31, 2009, the due date would be on or before January 15, 2010.

Accounting Form 4466 Processing Instructions
  1. Review the Form 4466 documentation for:

    1. Accuracy and completeness:
      I. If the Form 4466 is inaccurate, incomplete or does not meet any of the criteria in Item 1, b, then reject back to the corporation
      II. If the Form 4466 is inaccurate, incomplete but meets any of the criteria in 1, b then refer to CI per Item 2 below

    2. Funny Box items such as:
      I. Form received from the United Kingdom.
      II. Form and / or package is not in standard 8.5” X 11” paper (i.e., 8.5” X 14”, 11” X 17”, etc.).
      III. Inconsistency with Tracking Number address (as researched through the mailing website) and (Check Command Code (CC) ENMOD.
      IV. Inconsistency with corporation’s address (Check CC ENMOD).
      V. Form 2848, if attached, Section 3, Description of Matter states:

      • Income, Employment, Excise, Change of address and contact information on tax module.

      • Power of Attorney (POA) address was nowhere near the corporation’s address (i.e., The POA was out of Michigan (MI), but corporations were out of South Carolina (SC) and Connecticut (CT).

    3. If Form 2848, Power of Attorney and declaration of Representative is attached, then notate the Form 4466 spreadsheet “Y”. Mark “N” if not attached.

    4. If Form 8821, Tax Information Authorization is attached, then notate Form 4466 Spreadsheet “Y”. Mark “N” if not attached.

    5. Check IDRS for a Transaction Code (TC) 670 with Designated Payment Code (DPC) 64. If present, then notate Y on the Form 4466 spreadsheet.

  2. If any Funny Box item(s) are identified during initial review, then add the item(s) to the attached Form 4466 Tracking List and send to Criminal Investigation (CI) for additional review.

    1. If the case is not returned from CI after 10 work days, then the Accounting P&A Analyst will contact CI for a status.

    2. When the case is received from CI, Accounting will take the following steps:
      I. Review the Form 4466 spreadsheet for completeness. If incomplete, then the Accounting P&A Analyst will contact CI for resolution.
      II. E-mail a copy of the Form 4466 Tracking List to Maureen.Mccue@irs.gov, the subject line should read: 4466 ID Theft (ACO).
      III. If column (Z) on the spreadsheet indicates “N”, then reject the case back to the corporation per normal procedures.
      IV. If column (Z) indicates “Y”, then review column (AA) for further instruction.

    3. If the case is process-able during initial review then:
      I. Add the case to the attached Form 4466 Tracking List,
      II. E-mail the Form 4466 Tracking List to Accounts Management (AM), and
      III. EFax all supporting documentation i.e., Form 4466, Form 2848 or Form 8821, envelope, etc., to AM for account verification.

  3. After account verification, AM will return the Form 4466 Tracking List with entries for every corporation to the Accounting P&A Analyst by the 35th day from the date the list was referred to AM. If the 35th day falls on a weekend, then AM will send to Accounting the following Monday. If the 35th day falls on a legal holiday, then AM will send to Accounting on the next business day.

    1. If the case is not returned by the 35th day, then the Accounting P&A Analyst will contact AM for a status.

      Note:

      During the 35-day referral period, AM will periodically return updated spreadsheets as information is received from taxpayers.

    2. Review the spreadsheet for completeness (see AM field description below). If incomplete, then the Accounting P&A Analyst will contact AM for resolution.

    3. If columns (T and U) indicate “Yes” on the Form 4466 Tracking List, then continue processing the case per normal procedures and send the original Form 2848 or Form 8821 (From original Package) to Receipt & Control for normal processing.

      Note:

      If AM indicates in column (W) that the refund should be denied due to an IRC Section 965 tax obligation, then use the below paragraph in the reject letter:
      Your Form 4466 application has been denied. A taxpayer may not receive a refund or credit of any portion of properly applied 2017 tax payments unless and until the amount of the payments exceeds the entire unpaid 2017 income tax liability, including all amounts to be paid in installments under section 965(h) in subsequent years. Rather than refunding your payment, it will be applied to your next successive annual installment (due in 2019) and to the extent the excess exceeds the amount of the next successive annual installment due, then to the next successive annual installment (due in 2020, etc.). The IRS.gov Tax Reform page provides a link to Questions and Answers about Section 965; Q&A14 provides more detailed information.

    4. If columns (T or U) indicate “No” on the Form 4466 Tracking List, then send to CI for additional review.

  4. If the case was referred to CI for additional review but not returned after 10 work days, then the Accounting P&A Analyst will contact CI for a status.

  5. Once the case is returned from CI, Accounting will take the following steps:

    1. Review spreadsheet for completeness. If incomplete, then the Accounting P&A Analyst will contact CI for resolution.

    2. E-mail a copy of the Form 4466 Tracking List to Maureen.Mccue@irs.gov, the subject line should read: 4466 ID Theft (ACO).

    3. If column (Z) on the spreadsheet indicates “No,” then reject the case back to the corporation per normal procedures.

    4. If column (Z) indicates “Yes”, then review column (AA) for further instruction.

    Submission Processing Field Descriptions:
    Received (Date) – Date received by accounting.
    Closed (Date) – Date closed by accounting.
    Days Open – Running total of open days until closed.
    TIN – Employer Identification Number.
    MFT – Master File Transaction Code.
    Tax Period – Tax period of application.
    Name Control – Name control of corporation applying for refund.
    Refund Amount – Dollar amount of refund requested by corporation
    Form 2848 or Form 8821 (Attached) – Were these forms filed with the Form 4466, Yes or No.
    TC 670, DPC (64) – Is there a TC 670 with a DPC 64 on IDRS.
    Sent to AM (Date) – Date sent to AM from SP.
    Received Back from AM (Date) – Date returned from AM to SP.
    AM Field Descriptions:
    AM Received (Date) – Notate the date the spreadsheet was received in AM.
    LCI Indicator (Yes/No) – Indicate with a “Y” or “N” whether the company is included in the Large Corp Program.
    Phone Call (Yes/No) – Indicates with a “Y” or “N” whether the company was called by AM.
    Contact Name – Include the name of the person at the company the Form 4466 was verified by.
    Title – Include the title of the contact at the company.
    Contact Phone Number – Include the phone number used to make the contact.
    Contact (Date) – Include the date contact was attempted.
    Form 4466 Filed by Corporation – Indicate with a “Y” or “N” if the company verifies that the Form 4466 was or was not filed by the company.
    Form 8302/Form 8050 Verified – When attached, indicate with a “Y” or “N” if the banking information on these forms was verified.
    Date 1287C Letter sent – Indicates the date AM issued the letter to the company.
    Comments – Include all comments, this is where you input pertinent notes from the call. All notes are appreciated and welcomed.
    Returned to Accounting (Date) – Include the date the spreadsheet is completed and returned to Accounting.
    CI Field Descriptions:
    Sent to CI (Date) – Notate the date the spreadsheet was sent to CI.
    CI Case (Yes or No) – Was criminal activity / ID Theft identified during review.
    Comments – If criminal activity is identified during review, CI will indicate whether it is ID Theft or Other and include comments for accounting. All comments are appreciated and welcomed
    Returned to Accounting (Date) - Include the date the spreadsheet is completed and returned to Accounting.
Form 4466 - Research Federal Tax Deposits Payments on Master File
  1. Research taxpayer's Electronic Federal Tax (EFTPS) payments on Master File:

    1. Research IDRS.

    2. Compare payments on Form 4466 with the EFT payments.

      Note:

      If the taxpayer indicates overpayment from prior year (Line 3) was not transferred to appropriate tax year, take appropriate action to move credit to current tax year.

  2. If the taxpayer listed the EFTs on Form 4466 and research shows no record of EFT payments or credits on Master File or IDRS:

    1. Call the taxpayer for written verification of the EFTs.

    2. If the taxpayer does not submit verification, prepare an IDRS letter 1287C. Allow taxpayer 45 days to respond to IDRS Letter 1287C.

  3. If research shows the taxpayer made EFT payments in an amount equal to, or more than, the amount claimed on Form 4466:

    1. Verify the amount of EFT's claimed.

    2. If the amount of the transcript is LESS THAN the amount claimed on Form 4466, contact the taxpayer. See IRM 3.17.79.3.12.1 para (2).

  4. When Form 4466 has been accepted for allowance, research for any outstanding balance liabilities (OBL's) due on the taxpayer's account.

    1. For taxpayers who owe tax on former periods to which all or part of the amount claimed can be applied, use IDRS CC ADC24 for the credit transfer. Refer to IRM Part 2, 4 IDRS Terminal Input for instructions.

    2. Use a Transaction Code (TC) 820 on the debit part of CC ADC24 and a TC 700 on the credit part.

    3. Use the current date as the transaction date.

    4. Send a 1287C letter to the taxpayer explaining how this amount is applied.

    5. Issue a manual refund for the excess credit amount that was not offset. See IRM 21.4.4 and IRM 21.4.4.5.1

    6. If all credit claimed was used to offset OBL's, prepare Form 3753, Manual Refund Posting Voucher, with TC 840 for zero (0) amount. In "Remarks" put: the TC 840 .00 to release the "X" freeze when the return posts. Circle in red TC 770, otherwise it will create an "I" freeze.

  5. For taxpayers who do not owe other tax liabilities and the full amount claimed is to be refunded, prepare Form 5792 see IRM 21.4.4.4.1.

    1. There is no interest computation on the refund.

    2. Use blocking series 3 on CC RFUND.

    3. If the amount to be refunded is over $99,999,999.99, prepare Form 3753, Manual Refund Posting Voucher - See IRM 21.4.4.4.2.

    4. Forward for processing. Update IDRS with history status as follows: H,3753PREP.

Processing Form 4466 for Form 1120S Filers
  1. Processing Form 4466 for Form 1120S filers.

    1. If a Form 4466 is received from a Form 1120S filer (also referred to as a S-Corporation) who has made protective estimated tax payments in their FIRST TAXABLE YEAR, process as outlined in IRM 3.17.79.3.12.1 para (2) and (3).

    2. During review of the Form 4466, if information is not clearly defined, telephone contact with the taxpayer may be appropriate.

Non-Resident Alien and Dual Status Refunds (Austin Only District Office or DO 97 and 98)

  1. Accounting receives verified Form 1040NR, Dual Status Form 1040, and Foreign Corporate Returns, Form 1120F. Both returns require withholding of tax on allowable interest and the preparation of Form 1042S and Form 5205. Form 1042S and Form 5205 are prepared by the originator of the Form 5792 / Form 3753, Manual Refund Posting Voucher prior to routing to Accounting. Originators will input a TC 770 to the taxpayer's account for the amount of interest withheld and prepare a Form 3809 to transfer the credit (TC 770, amount of interest withheld) from the Master File to the 4610 Account. Form 3809 accompanies Form 1042S, Form 5205 and the refund document (Form 5792 / Form 3753, Manual Refund Posting Voucher).

    1. Returns arrive in Accounting Operations with the country code and tax rate indicated at the bottom of the return.

    2. All dual status returns, non-resident alien returns, and foreign corporation returns are rejected to Accounting Operations. If a zero or no withholding rate is shown on the return, reject the return to the Error Correction function for re-input, if the manual refund is not required for any other reason (e.g., to release a freeze conditions, etc.).

    3. Follow instructions for processing a manual refund in IRM 3.17.79.3.2. Generally, these are IDRS generated refunds on Form 5792.

    4. Prepare Form 5792 or Form 3753, Manual Refund Posting Voucher as necessary.

    5. Compute the withholding tax on the allowable interest using 30 percent or the treaty rate, as applicable.

    6. Subtract the amount of withholding tax from the net amount of the refund.

    7. Input TC 770 for the amount of interest withheld (30 percent of the treaty rate), as applicable. Input TC 290 for zero, TC 770 for the amount of interest withheld, Hold Code (HC 2) to hold notices and credit until TC 820 posts. Cycle delay (CD) 4 to delay posting of TC 290 and TC 770 until the TC 150 posts.

    8. Prepare Form 3809 using TC 820 on the debit portion, for the amount of interest withheld, and TC 700 for the credit portion to the 4610 Account. See IRM 3.17.243, Miscellaneous Accounting, for more information on preparation of transfer documents.

    9. NMF- Prepare Form 3809 for the amount of interest withheld (30 percent or the treaty rate), as applicable. Input TC 770, Credit taxpayer's NMF account; Debit 6520 Account.

    10. NMF- Prepare Form 3809 using TC 772 on the Debit portion for the amount of interest withheld; use TC 700 for the Credit portion to the 4610 Account.

  2. Form 5205, in four parts, are routed as follows:

    1. Mail the original Form 5205 to the taxpayer. Associate Form 5205 with the related Form 1166/SPS refund schedule.

    2. Attach Form 5205, Part 2, to Form 3809 (credit side) going to the 4610 Account. Forward Form 3809 for numbering and further processing.

    3. Forward Form 5205, Part 3, IRM 3.17.79.7.2

    4. Attach Form 5205, Part 4, to the tax return along with Part 3 of Form 5792 or Form 3753, Manual Refund Posting Voucher.

    5. Accounting Operations monitors the account until all transactions post.

    6. The RRACS area inputs the refund, principal and interest and related journal actions.

    7. Transfer the amount withheld from interest paid to the 4610 Account, Unapplied Advance Payments, via Form 3809. This is held in escrow until the withholding agent's return is filed (See IRM 3.17.79.6.2 ).

    8. Credits accumulate and are transferred monthly in a lump sum by Accounting Operations, from the 4610 Account to the withholding agent's account on the Master File using Form 3809 and posting a TC 700.

    9. Part 3 of Form 5205 is maintained in the appropriate area as outlined in IRM 3.17.79.6.2. Balance the Form 5205, and the monthly lump sum transferred from 4610 Account to the withholding agent's account.

  3. If the accounts have been under Examination, and the Assessment Statute on the module has expired:

    1. Make an NMF assessment

    2. Apply a TC 770

    3. Transfer transaction to the Master File on Form 514B

  4. Process manual refund documents, Form 5792 and Form 3753, Manual Refund Posting Voucher according to instructions in IRM 3.17.79.3.2.

Refunds Based on Court Decisions

  1. At times, a manual refund must be issued due to a court decision with no evidence of credit. These refunds are processed on the form that is most appropriate (example Form 3753, Manual Refund Posting Voucher or Form 5792). The documents reflecting the court decision serve as authority for making the refund.

    Note:

    These manual refunds must be reviewed by lead/manager before being processed. A Bypass Indicator "3" prevents offset through Treasury Offset Program (TOP).

  2. When a court decision requires the Government to pay court costs or fees to the taxpayer, that amount is issued by GAO. IRS should never include court fees in the amount of a tax refund.

  3. Specific instructions are located in IRM 5, Collection Special Procedures or Technical Support for Small Business/Self Employed Business Operating Division.

Lockbox Losses and Shortages

  1. At times, manual refunds must be issued as a result of a loss or shortage to approved lockbox banks/depositories.

    1. These manual refunds must be requested on Form 3753, Manual Refund Posting Voucher.

    2. Documents supporting this are received from the Bureau of the Fiscal Service and provide credit substantiation for making these refunds. These are reimbursement payments to financial institutions, not to taxpayers.

  2. Specific processing instructions are in IRM 3.0.230, Lockbox Processing Procedures.

    1. Form 3753, Manual Refund Posting Voucher will be initiated by Lockbox Coordinators or their designees.

    2. Only specific sections of the Form 3753, Manual Refund Posting Voucher will be completed.

    3. No payee ID (TIN) will be indicated.

    4. No MFT or Tax Period will be shown.

    5. No interest will be paid on reimbursements.

  3. Form 3753, Manual Refund Posting Voucher indicates:

    1. Charge Appropriation 20X1807;

    2. Refund from Account 6910;

    3. "Lockbox Reimbursement" at Item # 5, Other Remarks.

  4. Requests must be reviewed by an authorized Approving Official prior to processing. IRM 3.17.79.1, IRM 3.17.79.3.2, and IRM 3.17.79.3.5 for specific requirements.

  5. Accounting prepares the refund schedule, SPS or Form 1166, Voucher and Schedule of Payments.

    • Use "L" definer when preparing refund schedule numbers.

    • Enter Submission Processing Center Agency Location Code (ALC).

    • DO NOT forward for posting to MF or ANMF. Do not check for outstanding liabilities.

      Note:

      Maintain supporting documentation with the copy of the refund document maintained in the GAO audit file. If no supporting documentation, REJECT (See IRM 3.17.79.3.2.2 ).

  6. After confirmation of refunds by the RFC, Accounting Operations sends one copy of the refund schedule with check numbers indicated to the originating office or to the Lockbox Coordinator. These are not tax refund payments and must be retained by the Lockbox Coordinator for future research.

  7. Accounting Operations maintains the refund schedule and any substantiating documents in accordance with Records Control Schedule for Center Records (See IRM 1.15 ).Records Management, provides the retention and destruction schedule according to type of documents and records.

Overpayments on Bankruptcy Cases

  1. If the debtor taxpayer account results in an overpayment amount and the accounts are frozen by Bankruptcy, a transcript generates to the applicable Specialty Collection Insolvency office.

  2. Specialty Collection Insolvency employees should annotate the following in the "Remarks" when preparing a Form 5792:

    1. No pending TC 521 on any tax module,

    2. TC 520 MFT/Tax Period, and/or

    3. reason for manual refund request (overpayment, levy, trustee payment etc.)

  3. CIO and CSCO functions are responsible for the input of CC RFUND and must maintain case control

  4. Submission Processing Accounting Operations is responsible for the input of CC REFAP.

  5. Incomplete or inaccurate Form 5792 cases will be rejected (See IRM 3.17.79.3.2.2).

Offset Bypass Refunds

  1. Under certain hardship circumstances, the IRS may issue manual refunds of excess credits without first satisfying an IRS Outstanding Balance List (OBL). These refunds are known as "Offset Bypass Refunds" (OBR).

  2. Initiators of Offset Bypass Refunds (OBR) must input an Action Code via IDRS Command Code FRM77 to identify that the offset liability was bypassed. TC 971 AC 36 (IRS OBR) is input prior to the TC 840 manual refund.

    Note:

    A Treasury Offset Program liability may NOT be bypassed under any circumstances. In addition, if both an IRS and TOP debt exist, you may NOT bypass either offset. The IRS debt must be satisfied.

  3. A Bypass Indicator (BPI) "3" (on SPS, deselect the option "TOP Offset Eligibility" ) may be used when the OBR is in excess of an existing TOP debt. Refer to Offset Bypass Refunds, in IRM 21.4.6.

    1. Offsets regarding Telephone Excise Refund Tax or TETR, see IRM 21.4.6.

    2. Offsets regarding Economic Stimulus Payments or ESP, see IRM 21.4.6.

  4. An OBR requires prompt treatment to prevent offset during Master File processing.

  5. The processing date of OBR(s) depends on if there is a freeze code on the taxpayer's account. For qualifying taxpayers with no freeze codes, OBR request must be received and processed before the actual posting date on which the offset of the overpayment is shown (the 23C Date). When the overpayment is held in a module by an IDRS freeze condition, the OBR request for qualifying taxpayers must be submitted in coordination with the release of the IDRS freeze condition and before the account is offset. This is done to prevent an erroneous refund and to assure the overpayment is available for the OBR and has not been offset.

    Note:

    If an OBR is requested before the 23C date or offset of the overpayment, but a clerical error occurs that prevents processing of the request, the IRS corrects this clerical error by reversing the offset and issuing the OBR.

  6. OBRs may also be made if subsequent adjustments are made to a tax module. These may include: a payment or credit transfer, an audit tax adjustment, a math error correction and an amended return or claim that is filed and processed. Each will have its own 23C Date. Therefore, the subsequent overpayment can be issued in a manual refund for those taxpayers eligible for an OBR.

    Note:

    To prevent an erroneous refund on an OBR, hold codes or secondary transaction codes to hold the overpayment must be used.

  7. Emergency hardship refunds require coordination with Bureau of the Fiscal Service to ensure that a TOP debt is not bypassed. This is needed on Form 5792, Request for IDRS Generated Refund (IGR), and Form 3753, Manual Refund Posting Voucher. The remarks section must contain the following: "OBR" and the specific reason for issuing the manual refund along with IRM references which apply, notate the Bureau of the Fiscal Service contact name, the date of contact and no TOP debt. Ensure the TC 971 AC 36 for IRS liability is present on the module.

  8. Initiators of OBR manual refunds will attach to the Form 5792 or Form 3753, Manual Refund Posting Voucher:

    1. Evidence of the credit condition to show substantiated overpayment available, this may be either a copy of the unprocessed tax return (including all forms and W-2s) or an IDRS print showing the amount of the overpayment available.

    2. A print of TXMOD showing the amount of liability bypassed.

      Note:

      Do not bypass Master File offsets if the OBR cannot be issued prior to the 23C date of the original return.

    3. The manual refund document must be received no later than the Friday before the current Master File Assessment Document date (23C or Assessment date, which is always a Monday) of the original return.

      Note:

      Refund documents must be received by the Accounting team prior to manual refund cut off times.

  9. The Manual Refund function may reject Form 3753/Form 5792:

    1. If Form 3753/Form 5792 are not received before established cutoff times before the Assessment Document Date (23C) or

    2. If the required documentation and written statement in the remarks section is missing from Form 3753/Form 5792, but not before attempting to secure needed documentation in time to process the OBR;

    3. If the manual refund document has not been approved by the functional Approving Officer of record and/or the Taxpayer Advocate Liaison or Coordinator in sufficient time to meet the cutoff times.

  10. Initiators of manual refunds must monitor accounts with an OBR: to take actions necessary to stop computer generated refunds (pending transactions via CC NOREF), reverse offsets or take necessary subsequent actions to prevent erroneous refunds or notices from being released.

    1. The Manual Refund function employees (approving manual refunds) are not required to research for outstanding balance liabilities (OBLs) on OBR manual refunds when Form 3753/Form 5792 are received from other functions. The originator is required to confirm there are no liabilities prior to initiating manual refunds.

    2. Initiator will provide documentation as indicated in IRM 3.17.79.3.17(8), above. Initiators must research accounts for OBL's and attach documentation to Form 3753/Form 5792 routed to Accounting for approval.

    3. See IRM 21.4.4.5.1, Monitoring Manual Refunds.

Refunds from Examination (Compliance)

  1. Refund requests from Account Symbol 20X5433 will be initiated by Examination (Compliance) only.

    1. These refunds are not issued from the refund appropriation. These items are not overpayments of tax.

    2. Disbursements are authorized by IRC 7623, amended by Section 1209 of the Taxpayer Bill of Rights II, Public Law 104–168.

    3. Case Control Claim Numbers will be assigned by Examination on each item.

    4. Headquarters Examination assures no duplicates will occur.

  2. On a case-by-case basis, the Manual Refund function receives requests authorized by the appropriate Compliance Chief.

    1. Request is submitted on Form 3753, Manual Refund Posting Voucher, along with related supporting documentation.

    2. Compliance maintains case control and internal controls (e.g., separation of duties).

    3. A database was developed to perform future research. Maintain Case or Claim Number, TIN and dollar amount. This is essential in the event a check is returned by the taxpayer (via Form 1098 as TC 841) or is returned undeliverable by the Postal Service (via Form 1098 as TC 740).

  3. Supporting documentation consists of:

    1. Correspondence from Compliance management official authorized to request payment and providing pertinent information (e.g., 2395 or general ledger account credit and debit instructions, etc.).

    2. Form 3753, Manual Refund Posting Voucher completed by the requesting office and signed by the authorized Approving Officer.

      Note:

      These Form 3753 , Manual Refund Posting Voucher are not transcribed by or input through ISRP. These transactions do not post to the Master File.

  4. Compliance completes the following sections of Form 3753, Manual Refund Posting Voucher:

    1. Section I Item 11, General Ledger/Appropriation block 20X5433 Account Symbol; or 20X5433.1.

    2. Section II, Item 1c Handbook reference: IRM 25.2, Information and Informants' Rewards.

    3. Section II, Item 2d Evidence of Credit Condition: Other, IRC 7623, TBRII 1209;

    4. Section II, Item 3, Interest: check box "Not Allowable" .

    5. Section II, Check applicable box: Necessary supporting documents attached.

    6. Cross out entire Section III, Interest Computation.

    7. Section IV, Other Remarks: Write Case claim number and DLN where supporting documentation is filed.

  5. Accounting will prepare, schedule and certify Schedule and Voucher of Payments via Secure Payment System (SPS) using R as the definer. See IRM Exhibit 3.17.79–5, Schedule Numbers Format.

    1. THESE ARE ADMINISTRATIVE PAYMENTS, NOT TAX REFUNDS. These must be certified to and issued by the Submission Processing Center, Kansas City, Bureau of the Fiscal Service.

  6. Accounting will enter via Secure Payment System (SPS) to certify these administrative payment schedules.

  7. Select SPS menu option Miscellaneous Check.

    1. Input the Account Symbol 20X5433.1.

    2. Input the Compliance Claim Number (from Section V of Form 3753, Manual Refund Posting Voucher) assigned by Examination in "Remarks" area of SPS. This literal will be printed on the check to identify if it is undeliverable or returned.

  8. Number the document (DLN), prepare Form 813 and attach supporting documentation to SPS refund schedule. Forward to RRACS for journal actions. Retain copies pending confirmation by BFS and RRACS.

  9. Associate the confirmed SPS refund schedule print with the supporting documentation.

  10. Accounting will write the Refund Schedule Number and date of check on Form 3753, Manual Refund Posting Voucher then return the appropriate annotated copies of Form 3753, Manual Refund Posting Voucher to the originating branch.

  11. Undeliverable and returned checks will be processed using existing instructions.

    1. Cancellation credits are returned to the Submission Processing Center Agency Location Code (ALC) addresses via paper Form 1098 schedule.

    2. Forward a copy of the Form 1098 schedule to Compliance (Examination) for research or to be reissued. These actions are only possible when the Examination Case Claim Number appears on the cancellation schedule.

    3. Limited Payability (LP) cancellations may occur after 14 months from the check date if the check is not presented to Treasury for payment. LP credits are returned via Form 1081 from TRACS to Enterprise Computing Center (ECC).

    4. Cancellations are reversed back to Account 4755, via Form 3245 Posting Voucher, Refund Cancellation or Repayment.

    5. Update the Examination Case Claim database showing the check was returned/cancelled. Inform the originating office that the check was returned and for the reason. Compliance may wish to initiate action to reissue or to hold for future reference for inquiries from the recipient.

Credit Card Processor Chargebacks (Ogden Accounts Management Only)

  1. Ogden Submission Processing Center will process requests from approved Credit Card Processors for chargebacks. This is necessary to reimburse injured processors when credit cards are used fraudulently to pay Federal Income Tax beginning in Tax Year 1998 as well as other reasons as cited in IRM 21.4.4.7.2 (3).

    1. Processing instructions appear in IRM 21.4.4.7.2 , Credit Card Chargebacks for Credit Card transactions.

    2. See list in IRM 21.4.4.7.2 (1).

    3. Procedures were coordinated between the IRS Electronic Tax Administration (ETA) and Accounts Management staff.

    4. These disbursements are governed by regulations under IRC 6311 as published in the Federal Register, December 15, 1998, T.D. 8793, 26 Code of Federal Regulations, Part 301, Credit Card and Debit Card Tax Payments.

    5. Processing is centralized to the Ogden Submission Processing Center only.

  2. Reimbursements occur only when credit card charges are substantiated by the account holders and approved by the pre-authorized signatures of representatives named by the Processor.

    1. Backup and supporting documentation from the Processor must be submitted to the Ogden SPC site.

    2. See IRM 21.4.4.7.2 , Credit Card Chargebacks.

  3. The Ogden SPC site must control cases. Research future requests from the Credit Card Processor to prevent duplicate requests and erroneous disbursements being released.

    1. Establish internal controls to prevent duplicate payments.

    2. Control cases using a unique case control numbering system. This control number will be associated with all source documentation (e.g., Form 3753, Form 2424, Form 3210, etc.).

    3. Maintain case controls. Route cases using Form 3210, Document Transmittal.

    4. Disbursements are scheduled and certified by the Manual Refund function. If possible, the Refund Schedule number will be recorded on the Form 3210, returned to the originator for appropriate retention. The Refund Schedule number is required in the event IRS must trace disbursements made to Credit Card Processors.

  4. Requests for charge-backs may be accompanied by Form 8302, however, Form 8302 are used only when appropriate.

  5. Supporting documentation must accompany requests as described in IRM 21.4.4, Manual Refunds. If no supporting documentation, REJECT (See IRM 3.17.79.3.2.2). The Manual Refund function will:

    1. Verify that Form 2424 total the grand total refund amount.

    2. Verify that the back-up or supporting documentation is attached.

    3. Perform other validity checks as appropriate.

  6. Form 3753, Manual Refund Posting Voucher, will be completed and signed by the designated Approving Official. These types of refunds are small in volume.

    1. See IRM 21.4.4.7.2 .

    2. The Manual Refund function must be able to distinguish these 'claims' and schedule them as an ACH Direct Deposit made to the Processor only.

  7. Form 3753, Manual Refund Posting Vouchers, must be completed as follows because of the unique General Ledger (GL) Account number for the debit. This basically is a manual refund, but used to reimburse the credit card processor. Form 3753 , Manual Refund Posting Voucher for this purpose are completed as follows:

    1. Section I, Account Information.

    2. Item 1, Taxpayer Information Number (TIN).

    3. Item 3, MFT: Insert "X" .

    4. Item 6, Name and Address of Taxpayer: Insert "X" .

    5. Item 10, Make Check Payable to: Insert "RTN and Account Numbers" provided by the Credit Card Processor. Verify RTN and Account numbers with the documentation provided by the Processor. Supporting, back-up documentation must be provided to verify account numbers for scheduling and certifying disbursements.

    6. Item 11: Enter Account Symbol 20X1807 and amount.

    7. Section II, Manual Refund Authority.

    8. Reason, Item 1c, Handbook Reference: Insert "IRM 21.4.4."

    9. Item 1d, Other: Enter "IRM 21.4.4, How is a Chargeback Request Processed?, and Federal Register 12/15/98, T. D. 8793, 26 CFR, Part 301."

    10. Evidence of Credit Condition: Insert "X, Other, Chargeback for Credit Card Transactions." Transcript of Account.

    11. Item 2d, Other: Insert 21.4.4.7.2 , Credit Card Chargebacks.

    12. Interest: Not allowable.

    13. Check box, All items above completed.

    14. Check box, Necessary supporting documents attached.

    15. Check box for initiating BOD (Business Operating Division)

    16. Section III, Interest

    17. No interest will be paid on these items.

    18. Section IV, Other Remarks

    19. Insert: Back-up documentation is attached. List case control unique identifying number here.

  8. Form 3753 , Manual Refund Posting Voucher will be retained in the GAO file at the Ogden Submission Processing Center.

    Note:

    Maintain supporting documentation with the copy of the refund document maintained in the GAO audit file.

  9. Ogden no longer requires one Form 2424, Account Adjustment Voucher, per each Form 3753 , Manual Refund Posting Voucher. Remarks section of the Form 2424 will state that the Form 2424 substantiates all items listed on the Form 3210, Document Transmittal. Control cases. Cross-reference case control numbers will be recorded on the Form 2424, Form 3753 and Form 3210.

  10. The Manual Refund function will indicate the payment schedule date and number on the Form 3210 and the Form 3753. These documents will be returned to the Technical function for retention and research availability. This documentation is required to initiate future tracing actions.

  11. Manual Refund function will compare totals from each completed Form 3753 with the grand totals on Forms from the menu of the Secure Payment System.

    1. Disburse from the Regional Financial Center. These are not tax refunds.

    2. Certify via SPS, select ACH Option.

    3. Disburse from Treasury Account Symbol 20X1807.

    4. Use "F" (for ACH Direct Deposits, Ogden Only), as the Refund Schedule number definer.

Request for IDRS Generated Refunds (IGR), Form 5792

  1. Originators in various functions initiate a Form 5792, Request for IDRS Generated Refund (IGR), through use of the IAT, Manual Refund tool and have it signed by the pre-designated Authorized Approving Official, and input the request using IDRS CC RFUND through use of the IAT, Manual Refund tool.

  2. Employees initiating Form 5792 IDRS Generated Refunds (IGR) must be familiar with the restrictions and input instructions, as well as how to control cases, assemble packages, obtain management authorization and forward posting documents to the appropriate Submission Processing Center, Accounting Operation, Manual Refund function. Check your local Site or Business Operating Division guidance.

    1. IDRS, CC RFUND input instructions appear in IRM 2.4.20. IDRS generated refund criteria, along with the use of the Integrated Automation Technologies (IAT), Manual Refund tool, see http://iat.web.irs.gov/JobAids/iat.asp and other requirements appear in 21.4.4, Manual Refunds.

    2. Upon completion of CC RFUND input, Form 5792 is sent to the Accounting Operation, Manual Refund function for input of IDRS, CC REFAP (refund approval).

    3. This action generates an IDRS End of Day (EOD) file to be scheduled and certified by the Certifying Officer. The Enterprise Computer Center (ECC) transmits the EOD file to the Kansas City Bureau of the Fiscal Service ( formerly known as Financial Management Service) for the disbursement of funds to the taxpayer. See IRM 3.17.79.4.3.

    4. Simultaneously, the Submission Processing Center sends a file to ECC, resulting in the TC 840 (Manual Refund, document code 45) posting to the Master File.

Case Review and Command Code REFAP (Refund Approval)

  1. Once the initiator inputs the CC RFUND and obtains the necessary approvals, a control base is established on IDRS and requires a CC REFAP input by the Accounting Operation, Manual Refund function to complete the two-sided entry requirement.

    1. The CC REFAP is restricted for use by Submission Processing, Accounting Operation employees only.

    2. Employees with CC REFAP in their IDRS profile are restricted from use of a variety of sensitive combination command codes allowing account adjustments.

    3. The employee inputting IDRS CC REFAP cannot be the same employee as the employee inputting CC RFUND. IDRS Generated Refunds input via CC RFUND/CC REFAP is a two-sided entry system developed as a security measure. This meets the internal control standard of: Separation of Duties. Employees initiating requests for refund (CC RFUND) cannot be the same employees inputting (CC REFAP) the refunds.

    4. Since the two IDRS command codes (CC RFUND/CC REFAP) must be input on the same processing day, all documentation required by the Certifying Officer to support each refund request must be delivered daily (day of input) to the Accounting Operation, Manual Refund function. To ensure timely completion of all actions are taken prior to end of day, a daily cut-off-time is established for receipt of Form 5792 by each Accounting site.

  2. Review each case individually for completeness prior to input of CC REFAP. Do Not input CC REFAP, if any of the following conditions exist. This list is not all-inclusive:

    1. The Approving Official has not digitally signed Form 3753 or Form 5792.

    2. The digital signature format used on Form 3753 – Section V, item 1 and Form 5792 – Section IV, item 4 does not include the SEID and Name or E-mail of the approving official on the active Form 14031 - Section II on file.

    3. Signature of Approving Officer, on Form 3753 or Form 5792, is not reflecting in the active Form 14031 file and RSTRK (M) listing.

    4. If the manual refund requests are not completed with the required information per IRM 21.4.4.4.1 and the research documentation is not attached to the Form 3753 or Form 5792.

      Note:

      If the initiating BOD, box 21 is not indicated, contact the originator to obtain the information. Mark the appropriate field. If you are unable to contact the originator or determine the appropriate BOD, reject the request.

      Note:

      If the open control base, Section II box 13 is not checked, research IDRS and if the control base is open, mark the box.

      Note:

      If the Approving Official omitted the DATE on Form 5792, Section IV Box 5 or Form 3753, Section V Box 4, the Accounting function is authorized to enter the current day’s date ONLY if omission of the date is the ONLY reason identified for rejecting the manual refund request,

    5. If the name and address on Form 3753/Form 5792 does not match the entity information, and there is no explanation in the "Remarks" field, the explanation must include reason for the different address as well as where the backup documentation will be filed per IRM 21.4.4.5, Other Manual Refund Requirements.

      Note:

      Injured Spouse, Deceased Taxpayer, Bankruptcy cases must reflect an explanation in the "Remarks" field to include effected tax period and x-reference SSN if applicable.

      Note:

      In addition to the explanation in “Remarks” field a copy of Form 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer or court document must be included as proof of the refund entitlement for Deceased Taxpayer cases.

    6. The refund amount and/or the interest computation is in error. Verify "From" dates and "To" dates are appropriate.

      Note:

      No interest is allowed on unprocessable returns ("U" coded and displays all 9's in the "CRD" field on IDRS/TXMOD. Refer to IRC Section 6611(g).

    7. First name line is made out to the "Deceased Taxpayer."

    8. Blocking Series is blank or other than 9, and Form 8379 is attached or Injured Spouse is indicated in Remarks.

    9. Credit offsets moved to a different TIN and/or tax period and not moved back to the appropriate taxpayers TIN and/or tax period. Caution must be used when issuing a refund to a taxpayer from a different SSN/EIN. This can cause disclosure issues, as well as, forfeit the proper audit trail. See IRM 11.3.1, Introduction to Disclosure for additional information.

    10. If an overpayment is offset and credit-interest is allowed (TC 736), the credit interest must be addressed if the offset is reversed.

    11. The initiator(s) employee number on Form 5792, Section IV, Block 1 (IDRS CC RFUND in field 12) and/or terminal and pending sequence number. The originating employee may or may not be the same employee inputting CC RFUND. The mandatory IDRS field 12 programming enhancement was based upon findings made by the Treasury's Inspector General for Tax Administration (TIGTA) to improve the IDRS Generated Refund audit trail.

    12. A TC 810 (E freeze), TC ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Z freeze) is posted to the tax module or entity module and the case file does not include Criminal Investigation approval for the refund. A TC 790 without Examination approval where adjustment action is involved.

      Note:

      The -E freeze is no longer used for the Frivolous Return Program. The -E freeze will stay on current accounts until the account is resolved. For future accounts the F- Freeze will be used.

    13. An F- Freeze is a Frivolous Return Program freeze set by posting a TC 971-089. Refer to IRM 21.5.3.4.16.7 and/or Document 6209 Section 8.4 Master File Freeze Codes.

      Note:

      Effective November 2014, the W&I Compliance BOD is no longer valid due to the realignment to SBSE.

    14. The attached return copy is unsigned, or if it is a joint return, does not contain both taxpayers' signatures.

    15. If Computer Condition Code (CCC) 3, "U" coded return (Form 1040), or Computer Condition Code X, (Form 1120) is present on IDRS reject see IRM 3.17.79.3.2.2, except when a subsequent adjustment has been input indicating a Return Processable Date (RPD). The RPD must be notated in the remarks and a completed REQ54 screen print showing the RPD must be attached as back up documentation to the manual refund or Computer Condition Code X, (Form 1120) is present on IDRS, reject see IRM 3.17.79.3.2.2. If a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on IDRS reject see IRM 3.17.79.3.2.2, immediately contact the Scheme Development Center (SDC) for review.

    16. If a TC 971 AC 664 is present on the IDRS module for the same overpayment, Do Not Process reject see IRM 3.17.79.3.2.2, presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund is in process. Processing the refund request may result in an erroneous or duplicate refund.

    17. Examination Branch approval is required if Project Code 21 and an E freeze code exists on the entity. Immediately contact the Examination Branch Pre-Filing Notification Coordinator, if the situation occurs and approval has not been received from Examination or meets Joint Committee threshold of $2 million.

    18. -L Freeze and the account has a history item or activity code of MAAS (MMDDYYYY) or TC 971 AC 665, which indicates that an assessment has been requested, and that a liability may be in the process of posting. If the assessment (TC 300) is for other than $.00 amount the increase has not posted. The additional liability must be satisfied prior to issuing a manual refund. Reject if there is no indication this action has been completed. See IRM 3.17.79.3.2.2.

    19. -L Freeze if AIMS Status Code is other than 00 through 06 or 08.

    20. Originator's telephone number omitted.

    21. IF the Refund Statute Expiration Date (RSED) has expired.

      Note:

      If the RSED is expired, but the Remarks section includes the following notations: “Timely filed, No RSED Issue” or “RSED allowable”, do not reject and process the form. The statute issue has been cleared by the initiator and the credit is available for refund.

    22. If unresolved credit balance modules when the RSED has expired. Areas should coordinate with the Statute function. If assistance is needed in computing the RSED, contact the Statute function.

    23. No cross-reference in Remarks where credit source documents are filed (e.g., TIN, tax period and transaction code and TC 971 (or DLN) for Injured Spouse cases, etc.) or Bypass Indicators (BPI) are missing.

    24. There are blank areas on the Form 3753/Form 5792 entity area.

    25. There is white out, strike through, and/or corrections reflected on the Form 3753/Form 5792 when received in Accounting.

      Note:

      Some BODs will draw a text box, and contain signature/initial/date etc., on the forms, for intentions of internal reviews only. The text box must be drawn at the bottom of the form in the vicinity of Part I. This is not considered an alteration of the form. Do not Reject in this instance.

      Note:

      The Accounting Operation, Manual Refund function has authorization to make modifications (strike through(s) only) on the refund document to not cause further delay in processing the manual refund request. (For Example: CC REFAP error occurred, the document needs to be modified, BOD box not checked, signature date not reflected on document). Modifications to the document by the Accounting Operation, Manual Refund function MUST be annotated in RED, initialed and dated.

    26. Accounts indicating bankruptcy or litigation Master File freeze. When accounts show TC 520 "-V" or "-W" Master File Freezes, refund requests must be initiated by the Compliance area: Insolvency managers (for bankruptcy freeze) or the Technical Services function (for litigation freeze).

    27. No IDRS open control base. See IRM 21.4.4.5.1, Monitoring Manual Refunds for exceptions regarding CIS and TAS cases.

    28. The taxpayer account reflects a Refund Hold condition and has not been addressed in the "Remarks" or back up documentation addressing the Refund Hold condition is not attached. See Document 6209, IRS Processing Codes and Information for various freeze conditions that will hold credits from automatic release.

      Note:

      If a TC 846 is posted on a BMF account for the same overpayment as the manual refund request, a CC NOREF action must be reflected in the control base of the account. If a TC 846 is posted on an IMF account and CC NOREFP has not been initiated (P- Freeze is not on the account), the CC NOREF action will not intercept an IMF refund. CC NOREF is valid for BMF accounts only, when intercepting a systemic refund.

    29. Do not reject Direct Deposit Non-Receipt Claim manual refunds blocked 6XX. These are valid manual refunds.

    30. Do not reject if account is frozen with "-E" freeze. This is used to release an erroneous levy condition.

    31. CC REFAP enables the user to add a prior day indicator "Y" to the input screen, when the CC RFUND was input during the previous processing day evening real-time. Verify CC RFUND, TC 840 input date prior to CC REFAP input to determine if the "Y" indicator is applicable.

    32. Do no reject if Box 3 and Box 7 in Section II is not checked for Bankruptcy Insolvency requests. These boxes are not applicable.

  3. When review is complete and the Form 5792 is accepted for processing, input CC REFAP. See IRM 2.4.20, IDRS Terminal Input, Command Code RFUND/REFAP. Use of the Integrated Automation Technologies (IAT), Manual Refund tool, is recommended when initiating CC REFAP. See http://iat.web.irs.gov/JobAids/iat.asp.

  4. Retain Document Code 45 cases in the functional area by input sequence number within employee number. The next morning associate with Form 5147, IDRS Transaction Record. Retain case files until the list of refunds are certified. When certification is complete:

    1. Send Part 1, file copy of Form 5792 with applicable back up documentation to Files to be associated with the Form 5147, IDRS Transaction Record.

      Note:

      Form 5792 must be sorted into input sequence number within employee number. Place material in folder and indicate the input date and type of input (IGR). Also a copy of each Form 5792 must be attached to the related refund schedule maintained by Accounting.

    2. Pull all ANMF transaction records with associated case file and forward for input to RRACS.

    3. After ANMF cases have been properly input to RRACS, associate the Form 5147 and forward original copy of the Form 5792, to Files. Attach a copy of the manual refund request to the ANMF Transcript if applicable. A third copy of the Form 5792, should be maintained by the manual refund initiator for appropriate monitoring actions.

    4. Rejecting manual refund requests, see IRM 3.17.79.3.2.2.

  5. CC REFAP enables the user to add a prior day indicator "Y" to the input screen, when the CC RFUND was input during the previous processing day evening real-time. Verify CC RFUND, TC 840 input date prior to CC REFAP, to determine if the "Y" indicator is applicable.

RFUND/REFAP Mismatch

  1. When CC RFUND/CC REFAP mismatch is identified by the IDRS system (no match) the TC 840 "PN" (pending status) on IDRS changes to "DQ" (Deleted in Quality Review). A CC RFUND/CC REFAP "No Match" transcript (EOD07) is generated to the Accounting Operation, Manual Refund function. All rejects are AC "6" or "7" (identified by the literal "AC" ) on the (EOD07) transcript.

    1. AC "6" condition is caused by failure of related CC RFUND to match on CC REFAP data elements.

    2. When a CC REFAP does not match all data elements of CC RFUND, Accounting will reject, see IRM 3.17.79.3.2.2. When the "DQ" is caused by the input of CC REFAP, the Accounting Operation, Manual Refund function will re-input the manual refund request, CC RFUND.

    3. The CC RFUND must be re-input as originally indicated on the Form 5792, when the "DQ" is caused by the input of CC REFAP, with the exception of any additional credit interest due. (Do not modify interest if under one dollar ($1.00) tolerance) Caution should be taken to include input of any Bypass Indicator (BPI) reflected on the original manual refund request. A BPI identifies the eligibility for a TOP offset, see IRM 21.4.6.3.2, TOP Offset Bypass Indicator.

  2. IDRS will not allow an adjustment to a module by an employee other than the employee to whom an open control base is assigned. Ensure the existing open control base is in "B" status, prior to re-input of the CC RFUND.

  3. AC "7" condition occurs when a CC RFUND or CC REFAP is input without a related CC REFAP or CC RFUND record, respectively.

    1. If the CC REFAP was not input or was input incorrectly, the Accounting Operation, Manual Refund function will input both CC RFUND and CC REFAP to complete processing of the manual refund request.

      Note:

      The Accounting Operation, Manual Refund function will modify the Form 5792 for any additional credit interest (if applicable) and the IDRS Number of Employee re-inputting the CC RFUND. Contact the manual refund initiator to inform them of the reason for the change in the interest amount (if applicable).

    2. If CC RFUND was not input, a Form 5792 was not received, or CC RFUND was input incorrectly, the Accounting Operation, Manual Refund function will reject, see IRM 3.17.79.3.2.2.

    3. The employee inputting CC REFAP cannot be the same employee inputting CC RFUND for the same account.

  4. Following are examples of records which appear to be Mis-Matches on the EOD07 transcript. These records may be either AC "6" or "7" .

    1. Multiple CC RFUND and one CC REFAP - Initiating employee did not use CC TERUP on the incorrect CC RFUND.

    2. Multiple CC REFAP and one CC RFUND - Employee initiating CC REFAP input information and realized it was in error input another CC REFAP (CC TERUP is not available for CC REFAP), or inadvertently input multiple CC REFAP for the same case.

  5. These examples are not all inclusive. Each case should be thoroughly reviewed by the Accounting Operation, Manual Refund function to determine cause.

Certifying the IDRS Generated Refund (IGR) Tape

  1. Because of the expedite processing provided by the Regional Financial Centers, the "intercept" stop-refunds (CC NOREF, BMF only) capability provided for Master File generated refunds (TC 846) is not available for Form 5792 IDRS Generated Refunds (IGR).

  2. If it is determined prior to the shipment or transmission of the refund tape to the RFC that a refund is incorrect, IDRS provides a limited tape delete capability. If the deletion procedures will result in a day or more delay in shipping the refund tape to the RFC, a Certifying Officer should phone the RFC and request they stop the refund instead. Provide the schedule number, requester's name, and phone number. Ask RFC to call when the action has been completed. Verify whether the total on the SPS/Form 1166 was adjusted or a Form 1098 issued. If the RFC will not stop the refund, attempt to delete the refund from the tape as expeditiously as possible. Hand carry a memorandum or buckslip to the Chief, Computer Branch, requesting preparation of a Delete Card to be input to run EOD 27. Provide the following information on the memo:

    1. TIN and File Source

    2. ULC (valid for Submission Processing Center of input)

    3. MFT

    4. TC 840 Amount

    5. Date of input (YYDDD) (DDD = Julian date)

    6. Zip Code

    7. Submission Processing (Center) Code

  3. When all deletes have been processed, IDRS will produce a corrected IDRS Generated Refund Report (Adjusted) and IDRS Generated Refund Tape.

  4. If refunds were deleted from the tape prior to certification, several corrective measures must be taken to reflect the correct account status. Notify RRACS area.

    1. Delete the TC 840 record from TEP if possible; if not, prepare a credit portion of Form 3809, TC 841, Doc Code 48 to reverse TC 840. Cross reference information must be sufficient to establish a clear explanation of events.

    2. Manually adjust the IDRS PJ Recap and the Net Tax Refund Report to remove any deleted items and amounts from the affected Master Files (IMF, BMF, ANMF, IRAF).

    3. Enter a History item (CC ACTON) on IDRS to indicate the refund has been deleted and the case has been returned to the initiator.

    4. Input CC DELETE to eliminate erroneous TC 840 on IDRS Refund Information File (RFIF).

    5. Return case file to the initiator (with reason for deletion) for necessary action (e.g., reversal of adjustments, stop notices, additional adjustments, case monitoring, etc.).

  5. Use the IDRS Generated Refund Report to prepare summary SPS, Voucher and Schedule of Payments. The report contains the total number and amount of refunds on the refund tape; only one refund schedule is required. However, a memo entry reflecting the count and amount of BMF refunds is necessary to meet a Bureau of the Fiscal Service requirement. The information for the memo entry is available on the IGR Report.

  6. Anytime a refund schedule exceeds $50,000,000.00, Treasury must be notified the same day at the below E-mail addresses:
    funds.control@fms.treas.gov
    pam.help.desk@fms.treas.gov

  7. Assign the refund schedule number from IDRS end-of-day run to the SPS/Form 1166 and obtain the signature of the Certifying Officer. The date of the Refund Schedule is always the date signed regardless of the date of IDRS output.

    1. Refund Schedule Number generates from the EOD-2640 run via Control D. IDRS Generated refunds (IGR) and refund schedule number has always generated in the EOD-26 runs. Since July 2002, refund schedule numbers use the definer "W" designating IDRS Generated refunds.

    2. See IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

    3. Control D provides the IDRS End-of-Day (EOD) output.

    4. Secure Payment System (SPS) Screen requires a reel number. Reel number is available from Control D, the BFS MCC/ECC Acknowledgement Report.

    5. See Exhibit 3.17.79–8 (Refund Schedule Number Formats as Entered into SPS).

    Note:

    Utilizing the EOD-2640 report separate the different SUB-LVL-CD (tax classes) for principal (0903) amounts only. Input to SPS as separate TAS/BETC using the specific code in the SP block of the TAS/BETC in the SPS Summary Schedule screen.

  8. Since the IDRS Generated Refund is to expedite refund processing, this transmission should be accomplished as early in the day as possible. Retain a duplicate copy of SPS refund schedule with the IDRS Generated Refund Report and the IDRS PJ Recap.

  9. All ANMF transactions must be forwarded for input to RRACS. The IDRS PJ Recap will accompany these ANMF records. See IRM 3.17.79.4.1 for further guidance.

  10. All other transaction records and case files may now be sent for file retention or for other processing to the Master Files in accordance with IRM 3.17.79.4.1.

  11. Retain the SPS refund schedule (triplicate copy) and the IDRS Generated Refund Report to verify and confirm check issuance from the RFC.

  12. A copy of Form 5792 must be attached to the related SPS refund schedule.

Accounting Review of Manual Refund Requests, Form 3753

  1. Review Form 3753 for completeness and validate signature of Approving Officer.

  2. Manual refunds are prepared by other Business Operating functions and they also originate in Submission Processing work areas (Paper Processing Branch and Accounting Operations (RIP)).

  3. Accounting Operations has the discretion to reject (see IRM 3.17.79.3.2.2) manual refund requests if Form 3753 data is missing or credit or other supporting documentation is not attached or if there are alterations on the manual refund posting voucher.

    If the Form 3753 Then
    Is complete, accurate and signed by the Authorized Approving Officer on record Approve and process the manual refund.
    Is not signed, or is incomplete (blank data fields) or necessary supporting documents are not attached or restricted interest is not computed
    • Section I - Accounting Information, 1–15 (Name and address must match IDRS, pending actions or Form 1310, Form 8379, tax return if attached.

    • Section II - Manual Refund Authority, 1. Reason, 2. Evidence, 3. Interest, and Unnumbered Items(Control Base Opened is a must enter field)

    Note:

    If the “No” (Do Not Allow TOP Offset BPI-3) box is checked in Section II, the manual refund initiator must verify that no debt exists and notate the following: BFS contact name, date of contact and no TOP debt. This statement must appear in the “Other Remarks” box on the Form 3753. Exception: Form 8038CP is not subject to offset.

    • Section III - Interest Computation or COMPA

    • Section IV - Other Remarks and Initiating BOD

    • Section V - Manual Refund Approval, 1-5.

    Obtain missing information or reject (see IRM 3.17.79.3.2.2)
    Is designated and the name and address is not same taxpayer as shown on Master File (Item 10, Make check payable to:) and the account has no TC 971 input or remarks indicating where the credit source file location (e.g., DLN of TC 290, INJ Spouse claim, nnn-nn-nnnn, etc.) Verify that explanation is shown in Section II, Form 3753, and that supporting documentation is attached (e.g., Form 1310, etc.) or advise originator for input of TC 971 audit trail.
    Displays the following (possible duplicate refund conditions):
    • Previous TC 840 or TC 846. See IRM 21.4.4.2(3)

    • Expiration of TC 971, AC 044

    • 92xxx DLN Blocking Series on TC 150 and TC 846

    • TC 971, AC 134

    Note:

    Scheme Developments Centers (SDCs) are no longer authorized to issue manual refunds and accounting should return any Form 3753 back to the initiating SDC that are received.

    • Pending TC 014 or TC 018

    • No TC 971, AC 850 on direct deposit

    • TC 290 with 808, 809, 810, or 811 credit reference numbers

    • TC 972, AC 134

    • No TC 150 posted when refund is requested. See IRM 21.4.1.4.7 and IRM 21.4.1.4.10(2) Note

    • Bankruptcy: Incorrect closing code on a TC 520. See IRM 5.9.5.6.1

    • Improper Hold Codes on an Adjustment. See Doc 6209 Section 8.16(5)

    • No TC 570 on a credit transfer. See IRM 21.5.8.4.6(3)

    • Refund Holds, TC 570, TC 810, etc.

    Return to originator
  4. Ensure the Secure Payment System (SPS) refund schedule date is as close to the TO date of interest as shown. Normal interest must be computed to the date of the preparation date of Form 1166/SPS. See IRM 20.2.4, Overpayment Interest, for specific details for how to compute interest on manual refunds.

  5. After Form 3753 has been certified by the Certifying Officer, input TC 971, AC 664, on the appropriate tax account. Presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund is in process.

  6. All SP initiated manual refunds must be controlled for secondary monitoring by the Accounting function. It is the discretion of management to select the team that will work the aged inventory listing (CCA). Each SPC is required to use a unique team identifier, that will automatically generate all open controls to the weekly aged inventory listing (CCA). This is a secondary monitoring performed by the Accounting function and does not require the use on the EMT tool. Monitoring the Case Control Activity (CCA) list must be performed on a weekly basis.

  7. The DEO, will then input refund documents into SPS for certification. See IRM 3.17.79.6.4.

  8. To input TC 840 to MF, assign a DLN to Form 3753 using Document Code 45. Enter the DLN of the original document (if available) in the appropriate space.

  9. Prepare Form 813 in duplicate.

  10. File Form 1331B, Form 3354, and other documents with the triplicate copy of the related SPS/Form 1166.

  11. Attach duplicate Form 3753 to the adjustment document. Hold to file with the confirmed copy of the refund schedule, annotated with the confirmation date from the RFC.

  12. Route triplicate Form 3753 to Files to be associated with the return.

  13. Route original document and Form 813 batch work to Data Conversion for transcription and posting to master file.

Standard Form (Form) 1166, Voucher and Schedule of Payments and Secure Payment System (SPS)

  1. IRS must certify (e.g., to sign or to validate) the tax refunds and other IRS disbursement payments issued by Treasury. The Form 1166, Voucher and Schedule of Payments or the Bureau of the Fiscal Service (BFS) Secure Payment System (SPS). SPS is the BFS automated mechanism to certify refunds to the U.S. Treasury's Regional Financial Centers (RFC). This IRM Subsection describes procedures to prepare, transmit and certify refund schedules to issue tax refunds.

    1. SPS is the preferred method to certify Treasury disbursements. Enterprise Computing Center (ECC) - Martinsburg, and each Submission Processing Center delegates authority to certify refunds, and certifies disbursements on-line via SPS. Developed by Bureau of the Fiscal Service in 2004, SPS systems support and software is provided by the Bureau of the Fiscal Service.

    2. The Bureau of the Fiscal Service processes all Master File, IDRS, and Manual refunds for the Internal Revenue Service,

    3. Confirmation data is transmitted by the Bureau of the Fiscal Service through the RFC Link/Intra-governmental Payments And Collection System (IPAC) .

Scheduling Refunds

  1. Refunds are scheduled and certified on the Bureau of the Fiscal Service (BFS) Secure Payment System (SPS).

  2. Manual refunds issued after the last posting cycle of the calendar year are not posted to the Master File (MF) in sufficient time for interest amounts to be extracted for the Master File preparation of Form 1099-INT, Interest Income.

    1. These refunds do not post to the Master File until after Cycle 01 the following year.

    2. Procedures for issuing Form 1099-INT Copy B are outlined in IRM 3.17.79.7.1, Form 1099-INT, Interest Income, Copy B To Recipient.

  3. The Accounting Operations area inputs a history item on IDRS for each Form 3753 scheduled when they prepare and schedule the SPS or Form 1166 Voucher and Schedule of Payments (e.g., Refund Schedule). The history item is input via Command Code (CC) ACTON the day the refund is scheduled.

  4. All Form 3753 that have been reviewed and have been processed must have a TC 971 AC 664 input on the module that the manual refund is being issued from. The presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund has been processed. This will alert anyone reviewing the account that a Form 3753 is being processed. This is to be completed as follows:

    • Access command code FRM77

    • Input 971 in the transaction code (TC) field and 664 in the action code (AC) field, on the appropriate tax account. This must be input the same day the Form 3753 is approved, scheduled, and certified in SPS.

    • The remarks field must be populated with "Form 3753 IN PROCESS."

  5. ISRP programming initiated by the Custodial Account Processing (CAP) office of the Chief Financial Officer now transcribes the Refund Schedule Number for Document Codes 45.

Regional Financial Center Mailing Addresses

  1. Refunds are disbursed by the Kansas City, Regional Finance Center (RFC).

    1. Generated refund data not provided by dedicated telecommunications line or transmitted via Secure Payment System (SPS) must be submitted on a Form 1166 to the Kansas City, Regional Financial Center (RFC), Department of Treasury, Bureau of the Fiscal Service (BFS) on a FMS Form 1166 Voucher and Scheduling of Payments to the following address:
      Department of Treasury, Bureau of the Fiscal Service
      Kansas City Financial Center
      Attn: DSSV
      4241 NE 34th Street
      Kansas City, MO 64117

    2. The following information is for refund post processing at the Philadelphia, RFC, Department of Treasury, BFS:
      Department of Treasury, Bureau of the Fiscal Service
      National Payment Recovery Center
      13000 Townsend Rd
      Philadelphia, PA 19154

    3. The following information is for the Hyattsville, RFC, Department of Treasury, BFS office:
      Department of Treasury, Bureau of the Fiscal Service
      Attn: E-ICAM-FMS
      3700 East-West Highway
      Hyattsville, MD 20782

Contingency Standard Form (Form) 1166 Voucher and Schedule of Payments

  1. In the event the SPS is not accessible, the SPC site will immediately notify headquarters analyst Ronnie.Maldonado@irs.gov and back-up Cathy.R.Andrews@irs.gov for further directive on actions needed, to ensure refunds are issued in a timely manner. The contingency action may require the manual preparation of Standard Form (Form) 1166 Voucher and Schedule of Payments and Form 1167 Continuation Sheet, for submission to the Kansas City, Bureau of the Fiscal Service by the Submission Processing Center and the Enterprise Computing Center (ECC) Certifying Officer, authorizing the issuance of refunds. The Form 1166 instructions appear in this IRM in the event the Secure Payment System (SPS) is not accessible and use of the Form 1166 is needed.

  2. Form 1166 and Form 1167 are pre-numbered for control and security purposes. Form 1166 is numbered sequentially beginning with two alphabetic characters followed by six numeric digits, i.e., AA 000001 through ZZ 999999. A sample of the prior year definers appear below for Master File Generated Refunds:

    1. Secure Payment System (SPS) vouchers are numbered by year, Center Code, IMF (1) or BMF (2), and cycle (MCC processed cycle). Processing year 2003 Master File had 53 processing cycles (200353).

    2. Prior year Master File refund schedules showed F for paper International (IMF and BMF).

    3. Prior year Master File refund schedules showed FEF for Direct Deposit International (IMF only).

    4. Prior year Master File refund schedules showed R for replacement.

    5. Prior year Master File refund schedules showed X for BMF Accelerated (BMF only).

    6. Prior year Master File refund schedules showed EFT as Direct Deposit (IMF only).

    7. See IRM 3.17.79.2 for a list of the current Master File generated refund schedule descriptions.

  3. Submission Processing Centers and Enterprise Computing Center (ECC) - Martinsburg, continue to assign schedule numbers to refund schedules. The Form 1166 confirmation data accessed through the IPAC/CARS RFC/Agency Link reflects the schedule numbers assigned by the Submission Processing Center and ECC. This refund schedule number is used for accounting and auditing purposes.

  4. Although now phased out for other than contingency reasons, Centers were required to show the range of Form 1166 and 1167 serial numbers assigned to their Agency Location Code (ALC) by General Services Administration (GSA). The assigned serial numbers are shown on the reverse side of the Form 210 as follows:

    Form 1166 (OCR) BB000001BB999999
    RR009000RR999999
    Form 1167 (OCR) 0000001AA9999999AA
    0000001DD9999999DD
  5. Pre-numbered Form 1166 and Form 1167 (OCR) must be requisitioned from the GSA Stores Depot, Federal Supply Service. The stock number to be used when ordering Form 1166 is 7540001352376 and Form 1167 is 7540001052305.

  6. Agencies are not required to submit refund schedules in strict numerical sequence. However, necessary steps must be taken by the Centers and ECC to ensure all refund schedules are accounted for and controlled against misuse. ECC and the Centers must maintain a control log of refund schedules. This control log must be retained as long as the schedules are held in the GAO site audit file. Unnumbered vouchers and vouchers outside the range designated on the reverse side of Form 210 are rejected by the receiving RFC.

  7. If the lost, missing, or stolen refund schedule or group of schedules has personally identifiable information (PII), then report the loss to the RFC and the Office of Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office (IM) using the PII Breach Reporting Form. Call (267) 466-0777 if you have any problems with the online form or have questions about completing the online form. See IRM 10.5.4, Privacy and Information Protection, Incident Management Program, for additional information about reporting losses, thefts, and disclosures. Visit the Report Losses, Thefts and Disclosures page in the Privacy and Disclosure Knowledge Base at https://portal.ds.irsnet.gov/sites/vl003/lists/reportlossestheftsdisclosures/landingview.aspx and the IF/THEN Chart at https://portal.ds.irsnet.gov/sites/vl003/RelatedResources/IfThen%20Guide%20for%20Reporting%20Breaches%20-%20Rev10012018.pdf, for additional information and guidance.

  8. Should this occur, Centers must submit new Form 210 cards for the Certifying Officer. The new range begins with the first voucher on hand following the missing voucher.

  9. The servicing RFC(s) must be notified of any newly assigned serial numbers when an additional stock of refund vouchers is ordered. Upon receipt of the new stock, Submission Processing Centers must submit updated Form 210 cards reflecting the newly assigned range of serial numbers or a memorandum to the RFC providing that data.

  10. Basic procedures for preparing paper Form 1166 appear below.

    1. Prepare Form 1166, Voucher and Schedule of Payments, in triplicate.

    2. Form 1166 is prepared by inserting the name and address of taxpayer from the "Make Payable to" box of Form 3753 when initiating manual refunds.

    3. The Accounting Operations area scheduling manual refunds on SPS/Form 1166, inputs a history item on IDRS for each Form 3753 scheduled.

Secure Payment System (SPS) Contingency Plans
  1. The preferred method to certify refunds continues to be Secure Payment System (SPS). The contingency or backup method, however, continues to be the paper Form 1166. We will retain instructions for typing Form 1166 until they are no longer necessary.

    1. Prepare Form 1166.

    2. Failure to follow the specific guidelines will result in the rejection of the refund schedule by the Regional Financial Center and delay issuance of the refund check(s).

  2. Verification, certification and disposition of Form 1166. Prepare adding machine tapes from Form 3753 showing interest amounts, amount of checks, total of each tape.

    1. Prepare adding machine tape for each refund amount listed on Form 1166.

    2. Compare and reconcile the two tapes with the total on Form 1166. When in balance, destroy adding machine tapes.

    3. Assign schedule number to Form 1166. See Exhibit 3.17.79–5 for Schedule number formats. Obtain signature and phone number of Certifying Officer.

    4. After certification, the original and duplicate Form 1166 are detached and sent to the Regional Financial Center by the Certifying Officer or the designee.

Form 813, Document Register
  1. Prepare Form 813, Document Register, in duplicate, for each block of 100 or less items.

    1. Enter in "Block DLN" the first eleven digits of DLN assigned to Form 3753. Enter Transaction Code (TC) 840 in appropriate block and note "MANUAL REFUND" on top of the Form 813.

    2. List the amount(s) from each Form 3753 on the Form 813 line with the serial number corresponding to the document.

    3. If interest is shown on Form 3753, enter it separately in brackets and to the right of total amount of the refund check to be issued. In the example below, the $3.20 is included in the $350.00 as well as being separately listed.

      Example:

      350.00 (3.20)

    4. Enter the total of check amounts preceded by accounting sign "Dr" . This identifies the total amount as a "debit" . Enter the total of the bracketed interest amount to the right of the check total amount.

    5. Circle the document count at the appropriate preprinted serial number. This is the number, plus one, of the last refund amount. For a single item circle "01" .

  2. Enter DLN of return or related credit source document on Form 3753. Detach original and duplicate from return; leave triplicate copy attached.

Distributing Posting Documents
  1. Disposition of documents:

    1. Hand carry original Form(s) 3753 and Form 813 to Batching for input, according to cycle, per IRM 3.11.10, Revenue Receipts.

    2. If account is on IDRS, release to Batching for input in next cycle.

    3. If account is on retention, hold for appropriate cycle, then release.

    4. The manual refund request may specify cycle.

    5. Prepare appropriate transmittal form. Send the second copy of Form 3753, Form 813, and Form 1166 to Revenue Accounting Control Systems (RRACS).

    6. Form(s) 813 (duplicate copy) is used for preparation of Master Control Record (MCR) per IRM 3.17.30, SC Data Controls.

    7. Form(s) 3753 (duplicate copy) is returned from RRACS or Redesigned Revenue Accounting Control System when refund confirmation is received from the RFC. The Form 3753 is retained with copy of Refund Schedule.

      Note:

      If required, TC 841 with same date as TC 840 (schedule date) and an amount not greater than the TC 840 is used to reverse TC 840.

  2. Prepare Form 8166, Redesigned Revenue Accounting Control System (RRACS) Input Reconciliation Sheet, from triplicate copy Refund Schedule/Form 1166. See IRM 3.17.63, Redesigned Revenue Accounting Control System.

    1. Tape Data Control Sheets.

    2. Verify debit items are included in input tapes for MF entry.

    3. The RRACS team inputs this data from serially numbered Form 8166 and enters the number on the related Form 1166.

    4. Enter the Net Tax Refund Report (NTRR) line item information on the triplicate Form 1166 from Form 3753.

    5. File in Form 8166 file.

  3. Hold the triplicate copy of Form 1166 and duplicate Form 3753 in Manual Refund file for further processing after the confirmed Form 1166 arrives from the RFC via Intra-governmental Payment and Collection System (IPAC).

    1. Review the Manual Refund hold file once a week.

    2. Follow-up with the RFC on items that are older than five (5) workdays.

    3. If a pattern of overage items is noticed, contact the Chief Financial Officer, Office of Revenue Systems, Attn: Revenue Accounting Section, OS:CFO:R:S.

    4. Fold triplicate Form 3753, if necessary, and associate with return or case file of initiator. If return is not available (for example, tentative carryback), associate triplicate copy with case file.

  4. Send returns for sorting, examination, coding, blocking, numbering, or to files, as appropriate. Dual Status for MS 1040 (AUSC DO 98 only) is returned to Reject Examination for clearance from the Reject Register and input to the Master File.

  5. BMF Manual Refunds:

    1. New BMF NMF accounts will be directed to the Cincinnati Center.

    2. Process BMF manual refunds through the RFC which normally receives refund transactions for other types of taxes.

    3. Changes may occur from the Transshipping Guidelines published by W&I Project Management Office (PMO) staff. Refer to the Submission Processing Web Page and SERP Transshipping links.

Bureau of the Fiscal Service Secure Payment System

  1. The Bureau of the Fiscal Service (BFS), Secure Payment System (SPS) was developed by BFS to certify disbursements for all Federal agencies. SPS automates refund schedule preparation, certification, transmission and verification of the Form 1166, Voucher and Schedule of Refunds. SPS replaces the manual or paper Form 1166 and continuation sheet. SPS is user-friendly, menu screen driven, with microcomputer programs automating two distinct processes:

    1. The certification process, a designated Certifying Officer certifies (or attests in writing) that disbursements to be made by the Federal Government are legal, proper and correct. See also IRM 3.17.79.1.8, Certifying Officer Review, and IRM 1.2.40.20, Delegation of Authority # 28, Designation of Officer and Employees as Authorized Certifying Officers.

    2. The scheduling process, is the IRS transmission to BFS of detailed payment data records; the payee amount, identification number and related inscription information printed on the face of the check and/or summary information from Enterprise Computing Company (ECC) - Martinsburg. See further references at IRM 3.17.79.2.2 , Generated Refunds, Tapes and Schedules and IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

    3. SPS is the preferred method for certifying tax refund disbursements. Paper Form 1166 should be used only in rare circumstances and is considered the contingency for SPS system transmission failure.

    4. BFS assures National Office that should difficulties occur with certifying payments via SPS, The Kansas City, BFS will contact customers to redirect certifications via SPS. If this does not occur, please advise National Office.

  2. Paper Form 1166 format procedures are in the Voucher Schedule Preparation Manual (October 1989) prepared by the Regional Financial Center.

  3. BFS's Intra -governmental Payment and Collection System (IPAC) for confirming refund schedule information has also developed a User Guide available at the following web address: http://fms.treas.gov/ipac/index.html. IPAC is an Internet-based system which replaced several applications on DOS GOALS (224, RITS and TRACS), and requires Internet access, browsers and versions with User ID and Passwords.

  4. SPS procedures are published on the BFS site http://fms.treas.gov/sps/index.html.

  5. Three important differences between Form 1166 formats and the SPS formats are:

    1. ACCOUNT SYMBOL: This field (16 alphanumeric characters) replaces the former appropriation code field. The first seven characters are mandatory. The first two characters must be the first two characters of the ALC and is part of the transmission validation process. Additional characters are as follows for tax refunds only:

        Enter 20X0903 for a refund without interest and
        Enter 20X0903/04 for a refund with interest
    2. REMARKS This field has two lines (40 alphanumeric characters for each line).

      Note:

      The DEO User Guide shows this field as Payment ID Lines for Enclosure Code 0 and 1 only.

      Caution:

      THE INFORMATION YOU ENTER ON LINE 1 AND 2 WILL AUTOMATICALLY PRINT ON THE PAYMENT CHECK. Enter information as shown below:

      Line 1 Enter MFT and Period
      Sample: 02/200912
      Line 2 Enter the two digit line number, a space, the word "Interest" and the amount (if necessary)
      Sample: 61 INTEREST 343.29
    3. CHECK SERIAL NUMBER RANGE SPS does not designate a space for the beginning and ending range numbers. The information from the CARS confirmation listing will be entered on the file copy of the SPS document.

Maximum Payment Amounts
  1. Treasury Financial Manual (TFM) Bulletin 97–07 dated August 1, 1997 increased the maximum amount for which IRS may certify payments for paper checks, Automated Clearing House (ACH) electronic payments and FEDWIRE Same Day Pay Refund electronic payments issued by the Regional Financial Centers. Same-day-pay refunds, however, carry unique prerequisites and must be issued only under case-by-case restrictions.

  2. The maximum amount depends on the type of refund schedule IRS submits to BFS. For example, maximum amounts for each instrument request (e.g., paper check, ACH electronic payment and FEDWIRE Same Day Pay Refund electronic payment) are as follows:

    1. Paper check with automated processing for maximum individual payments up to $99,999,999.99. Certify via either the Secure Payment System (SPS) or paper Form 1166.

    2. Paper check with manual processing for maximum individual payments of up to $99,999,999.99. Voucher Schedule and certify on SPS or paper Form 1166.

    3. ACH electronic payments for maximum individual payments of up to $99,999,999.99. Certify via the SPS or paper Form 1166.

    4. FEDWIRE electronic payments with electronic or manual processing for maximum individual payments of up to $999,999,999.99. Certify via the SPS or paper Form 1166.

  3. Large dollar payments: Agencies have an option to:

    1. Certify into multiple checks with individual amounts up to $99,999,999.99. Certify via SPS.

    2. Certify one check up to $99,999,999.99 via paper Form 1166 (or multiple checks if total is greater than $99,999,999.99).

Certifying Automated Clearing House (ACH)/Direct Deposit Hardship Refunds
  1. Regional Financial Center SPS Systems Administrators installed special software for SPS screen menu options for Next Day and Same Day Payment Refund selections.

  2. This is considered exception-processing. Because of this out of the ordinary, manual process, it runs a very high risk for disbursement losses (e.g., also known as erroneous refunds). The Submission Processing Director is the Accountable Officer over any lost revenue or disbursement loss. Cases of hardship Direct Deposit refund requests must be controlled and monitored closely by the Taxpayer Advocate Service to prevent misuse of this method or the release of erroneous refunds.

  3. Due to the inherent risk of error, initiators must:

    1. Follow IRM 21.4.4, Manual Refunds regarding the controlling of cases. Each refund document received in accounting must have an open control base or it will be rejected (IRM 3.17.79.3.2.2). The intent of the open control base is to monitor the account to ensure posting of the TC 840 and prevent any potential duplicate refunds.

    2. Research accounts via nationwide account research (Universal IDRS, CMODE, IMFOL, CFOL, etc.).

    3. Monitor (IDRS typically in 'M' status) for the TC 840 to post to taxpayer Master File account.

    4. Stop duplicate refunds, either manual (TC 840) pending or generated (TC 846).

      Note:

      CC NOREF will no longer intercept a posted TC 846 on an IMF account.

  4. Requests for direct deposit refunds (Form 3753 ONLY) submitted by Taxpayer Advocate Service are required to include supporting documentation (typically, the justification for the disbursement of credit). Evidence of hardship is required (i.e., 3rd party verification or a signed statement by an LTA verifying the hardship exists). Cases received must be completed and contain all required supporting documentation. In addition to IRM 21.4.4, Manual Refunds, TAS will provide the following as appropriate to substantiate ACH/Direct Deposit (DD) manual refunds:

    1. Proof of economic hardship to support issuing an ACH/DD manual refund.

    2. Proof from bank that a savings or checking account exists and it is the account of the taxpayer or a voided check. Use discretion when taxpayer accounts are Married Filing Joint (MFJ).

      Note:

      Accounting will issue ACH/DD refunds to a savings or checking account that is listed in one of the Married Filing Joint (MFJ) taxpayers ONLY when an injured spouse claim has been filed (copy attached). The name on the savings or checking account MUST match the name of the taxpayer identified as the injured spouse, NO EXCEPTION

      .

    3. ACH/DD on Form 3753 must include third party verification of hardship. If 3rd party verification is not present, request a signed statement by an LTA verifying that the hardship exists. The signed statement must be submitted with the manual refund request (this is in addition to the manual refund being signed by an LTA).

    4. See IRM 21.4.4, Manual Refunds, for instructions on how to research accounts and prepare Form 3753 (Rev. 1-2010), Manual Refund Posting Voucher. Document 6209, ADP, Section 6, describes necessary research and monitoring requirements for originators of manual refunds.

  5. The Submission Processing, Accounting Operation, Manual Refund function, receive perfected Form 3753 from all Business Operation Divisions (BOD) and Field offices. A perfected Form 3753 means: the request is appropriate for the expedite processing and high risk of error associated with this exception process, the originators have researched and will continue to monitor accounts, and have cited the authority for requesting the refund through the exception process. It is important that the request has been initiated by the appropriate management official (or area) to approve the manual refund for disbursement. Form 3753 must be reviewed and approved by the designated Authorized Officials formally delegated the authority to sign the manual refund request.

  6. Accounting must verify that Form 3753 is complete and that supporting (back-up) documentation is attached. See IRM 21.4.4Manual Refunds, for complete instructions for initiating a manual refund.

  7. Section II, Manual Refund Authority, Section II, Control Base Opened must be checked, Section III, Interest Computation. Mark applicable items and record authority and IRM references.

  8. Section IV, Other Remarks, Section IV, initiating BOD must be included.

    1. If the "No (Do Not Allow TOP Offset, BPI-3 )" box is checked in Section II the manual refund initiator must verify that no debts exist and notate the following: BFS contact name, the date of contact and no TOP debt. This statement must appear in the Other Remarks section on the Form 3753. See IRM 21.4.6.4.2.2 and IRM 21.4.6.4.2.3 for a list of MFTs that are subject to TOP offset.

      Note:

      Exception, Form 8038CP and IRS erroneous collected payments are not subject to TOP offset. This statement must appear in the Remarks section on the Form 3753.

    2. If a debt exists, contact BFS. See IRM 21.4.6, Refund Inquiries—Refund Offset, for instructions to contact BFS.

    3. Write "DD request (e.g., Form 911 or hardship determination.)" .

  9. Form 3753, Section V, Approval:

    1. Box 1. Digital Signature of Authorized Official

      Note:

      The digital signature format used must include the SEID and Name and must match the SEID and Name of the approving official on the active Form 14031 - Section II on file.

    2. Box 2. Name of Originator

    3. Box 2a. SEID of Originator

    4. Box 3. Date Signed

    5. Box 4. Originator telephone number

  10. Manual Refund Units will verify the RTN and DAN (Checking or Savings) in Section 1, Box 11, with the supporting credit source documentation. Supporting documentation includes:

    1. Proof of hardship to support issuing as an ACH/DD manual refund ,e.g., Eviction Notice (Court Papers signed by presiding Judge), Official Notice (from water, electric or gas company), Medical Emergency (Physician's statement).

    2. When requesting a manual refund into a RAL/RAC account or a pre-paid debit card, you must provide proof that the account exists and that it is the account of the taxpayer. A RAL or RAC are contracts between the taxpayer and financial institutions (via tax preparer). Ownership of these accounts can only be verified on a current year originally filed return, and lose their validity after a refund is received into the RAL/RAC bank account in the same processing year. Therefore, Accounting will not honor subsequent refunds into these types of financial accounts.

      Possible fraud issues may exist if documentation cannot be provided that the account belongs to the taxpayer(s). In this case, the refund must be issued as a paper check on Form 5792.

      If the refund request is the original refund of an electronically filed return a TRDBV print must be provided with the manual refund request to allow verification of the Routing and Account number on the originally filed return. See IRM 21.4.4, Manual Refunds.

      Note:

      If the taxpayer files MFJ (FS2) then account information must be provided that shows the account reflects both names, unless the filing status is MFS (FS3). As a safeguard against Fraud and other security issues, a signed statement by the other spouse does not verify to IRS that (s)he is the joint taxpayer listed on the account. DO NOT ACCEPT SIGNED STATEMENTS from taxpayer. Possible fraud issues may exist. If documentation cannot be provided that the account belongs to both taxpayer(s) the refund will be issued as a paper check on Form 5792.

    3. ACH/Direct Deposit Form 3753 manual refund requests submitted to Accounting Operations must include the 3rd party verification of the hardship (e.g., a copy of the eviction or utility shut-off notice).

      Exception:

      If 3rd party verification is not present, look for or request a signed statement by an LTA verifying that the hardship exists. The signed statement must be attached to the manual refund request (this is in addition to the manual refund being signed by an LTA). Maintain copy of refund document and statement in audit file.

      Remarks block on Form 3753 must indicate Form 911 or hardship determination. Requests without appropriate backup documentation or remarks stating the 911 hardship condition, will be issued as a paper check (3-5 days ).

      Note:

      When a RAL is denied, the deposit account on the original return will convert to a RAC. CC TRDBV will not update or reverse current information. Accounting will deposit the refund into the account listed on the original return. See bullet (b) above.

      Exception:

      If the RAL/RAC account was not accepted or approved by the financial institution/tax preparer. TAS will obtain a denial letter (including the refund amount) and attach to the refund document in order for the refund to be deposited into a financial account not present on the original return. See (4)b above for required documentation. Maintain copy of refund document and letter in audit file.

    4. Interagency/bureau refunds will not always contain specific taxpayer identifying information. Typically these types of refunds will be a result of special investigations, testing and binding agreements. Look for the official governing memorandum authorizing the direct deposit refund. Also, the funds to be refunded will come from specific fund accounts (general ledger or appropriations). See also IRM 3.17.79.3.10(7) for additional information.

    5. Taxpayer Advocate Service (TAS) ACH/DD manual refund requests originating from Unprocessed Original Returns will contain the following:

      • The first page of Form 1040, 1040A, 1040EZ, etc., to show correct Entity information and official IRS receive date stamp.

      • The systemic validated screen print from REJECTS or

      • The Form 1040 page with Reject employee initials next to the refund amount. This is used only if TAS has a hardship case that does not allow the 5 day wait for the screen print from Rejects. The P&A analyst assigned the TAS Division duty will walk the return to Rejects for manual validation. The Reject employee will initial Form 1040 next to the refund amount indicating the refund has been validated- See 3.17.79.3.3.2.

    6. Taxpayer Advocate Service (TAS) can only gain approval from Fresno and Kansas City ACS Centers, which are the designated sites for approving and processing Refund Hold OAR(s) (See IRM 25.12.1.9(3) ). The Refund Hold Program holds individual income tax refunds and credit elects when a current year refund return is filed and the taxpayer's account has at least one non-filed tax return within the five years prior to the Refund Hold tax year. The Refund Hold account will contain a TC 570 w/999 in the Julian date field of the DLN (digits 6, 7, 8). Manual Refund requests submitted by TAS for Refund Hold Accounts must contain:

       
      • a copy of the OAR (Operations Assistance Request) signed by the ACS TAS Caseworker designated at Fresno or Kansas City Centers. REJECT back to TAS if OAR is not signed by a ACS TAS Caseworker/coordinator.

      Note:

      Accounts Management has the authority to request manual refunds on Refund Hold accounts (See IRM 25.12.1.12.2) only when processing Injured Spouse claims on Form 8379. These cases will not have an OAR attached. These cases will have approval from the Fresno and Kansas City designated coordinators.

  11. Certify via SPS. Use Schedule Type/Sub-Type option Miscellaneous ACH.

    1. Use Schedule Number definer "F" for EFT/DD refunds.

  12. Prepare Form 813.

  13. Assign Document Locator Number (DLN) to Form 3753.

  14. Write Schedule Number and date on Form 3753, Section I, Boxes 5 and 6.

  15. Route Form 3753 to appropriate area for further processing.

Special Uses of Standard Form (Form) 1166

  1. Request for Refund of Unassessed Revenues SPS/Form 1166 is for scheduling refunds of unassessed revenue collections, unassessed advance payments, or for miscellaneous refund items.

  2. When appropriate manual refund form, memorandum, correspondence, Claim Form 843, Unidentified Remittance Document, or advance payment case file and Part 2 of Form 3244A, Payment Posting Voucher Examination, authorizing a refund arrive in Accounting Operations:

    1. The individual refund items are scheduled identifying each payee and amount to be produced in the literal display printed on the face of the check for manual cancellations if the check is returned or undelivered. The refund checks are identified as: EXES, OFFER, SEIZURE or UNID.

    2. Record the IRS refund schedule number on documents authorizing refunds. See Exhibit 3.17.79–57 for description of refund schedule number format.

  3. The Refund Schedule/SPS/Form 1166 is processed as specified above, except that:

    1. No supporting documents are transmitted to the Regional Financial Center with the Form 1166.

    2. Form 3753 is returned to Files.

    3. Part 2, Form 3244A is returned to the computation clerk (deficiency) after entering the SPS/Form 1166 number in Remarks Block on the Form 3244A.

    4. Return the case file to the returns files group.

Information Documents, Form 1099 and Form 1042S

  1. This section contains general instructions for preparing information documents when the Internal Revenue Service pays interest on manual refunds.

  2. Reporting interest paid is required by the Information Returns Program (IRP) and must be filed electronically with the IRP at Enterprise Computing Center.

  3. Specifications are published annually in Publication 1220, Specifications for Filing Form 1097-BTC, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically (Catalog 61275P).

Manual and NMF Refunds
Form 1099-INT, Interest Income, Copies B to Recipient

  1. Receive all current year manual refund and NMF cases approved on Form 3753 and Form 5792 in the Certification function.

  2. Manual Form 1099-INT are issued by IRS when more than $10 ($600 or more in some cases) in refund interest is paid. Form 1099-INT, Copy B To Recipient, are computer generated on IMF and BMF accounts, except Corporation refunds, between January 1 and December 31 (through dead cycles) on manual refunds. Copy B To Recipient must be produced by the Manual Refund function during Master File dead cycles. Chief Information Officer (CIO) maintains the national program and transmits the Form 1099-INT information returns to Enterprise Computing Center (ECC) Information Return Program (IRP).

    1. Procedures for submitting data to ECC; due dates and addresses are found in the Publication 1220, Specifications for Filing Form 1097-BTC, Form 1098, Form 1099, Form 3921, Form 3922, Form 5498, Form 8935, and Form W-2G Electronically.

    2. The due date for furnishing the required Copy B to Recipient (taxpayer) is usually by January 31. This requirement is described in Publication 1220 and in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates.

    3. The due date for furnishing the 1099 information returns detail data to IRS Information Returns Program Payer Master File (IRP, PMF) at ECC is February 28. System Administrators files the appropriate national files electronically to ECC's IRP program.

    4. On NMF cases, a 1099-INT must always be manually prepared.

    5. All SPC sites maintain the national program (1099 Pro) and transmits manual refund interest Form 1099-INT information returns.

  3. Produce manual refund Form 1099-INT, Interest Income, (if not already prepared) for the interest amount paid on all manual and Non-Master File Accounts, if the interest paid by the Service to the recipient exceeds $10.00 or more for Form 1099-INT (and $600 or more for Form 1099-C).

    1. Form 1099-INT should not be issued until it is certain that the refund will not be deleted. If refunds are deleted, Form 1099-INT should be adjusted or destroyed as appropriate.

    2. Form 1099-INT, Copies B to Recipient, must be received by recipients by January 31 annually.

  4. Entity data is entered by the Manual Refund function using disbursement posting documents (Form 3753 and Form 5792). The program provides a cumulative interest paid dollar amount per entity.

    1. Non-Master File accounts receiving interest amounts over the threshold receive Form 1099-INT when the Service paid interest on tax refunds.

    2. Data will be entered into the Automated 1099 program by Manual Refund function employees.

    3. The Manual Refund function verifies that all items are entered, produced, deleted as necessary, printed and Copy B To Recipient are mailed to taxpayers prior to January 31.

Form 1099-MISC Informant Awards (Ogden Center Only)
  1. Accounting will maintain a separate file of ALL manual refunds issued as Informant Awards (TAS 20x5433) to specifically issue Form 1099-MISC.

  2. Form 1099-MISC will be issued annually (received by the individual by January 30). Accounting will:

    • Contact the Informant Claim Exam (ICE) Team for a copy of Informant Award recipients to verify proper issuance

    • The award amount will be input in the box other income

    • There is no tolerance, all awards paid must be issued a Form 1099-MISC

    • Issue Form 1099-MISC on total amount approved by the Whistleblower Office regardless of any offsets

  3. After processing Form 1099-MISC is complete, forward a copy of the transmittal to the ICE Team and Small Business and Self-Employed (SB/SE) HQ analyst.

  4. See IRM 25.2.1, Information and Whistle Blower Awards - Receiving Information and IRM 25.2.2, Information and Whistle Blower Awards - Whistle Blower Awards for additional information.

Releasing Perfected Form 1099-INT For Manual Refunds
  1. IMF and BMF refunds authorized for scheduling prior to MF dead cycles will automatically generate Form 1099-INT, Copy B To Recipient, for interest paid in excess of $10.00 ($600 or more in some cases). Manual refunds that do not post to master file (MF), the Accounting, Manual Refund function will manually prepare the Form 1099-INT and mail to taxpayer. The Form 1099-INT are not distributed until the refunds are issued and adjustments made on deleted items or items that have posted to the MF before the last cycle of the calendar year. See IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates.

  2. Items must reach batching prior to the last posting cycle for the calendar year. Master File Form 1099INT extracts occur during the last cycle of the calendar year.

  3. Manual refunds are scheduled and issued between January 1 and December 31, but the transactions are not loaded to the Master File until after Cycle 01 of the next processing year. Verify manual refunds were approved and posted prior to cycle 01 of the new processing year (e.g., CC REFAP'd no later than December 31).

  4. Verify the posting of IDRS refunds, a Form 1099-INT for items posted to the MF prior to cycle 01 of the new processing should not be manually prepared.

Transmitting Information Returns to IRS
  1. During the first week in January, after all manual refund Form 1099-INT are prepared and issued, retrieve Copy A from the Suspense file. Systems Administrators will prepare Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically. This Form 1096 or Form 4804 transmittal lists the issuing Submission Processing Center as the payer of interest. This manual procedure is only for use when Form 1099INT were not included through the Automated 1099-INT Program (centralized SA files these electronically to ECC) used for producing Form 1099-INT Copies B, To Recipient.

    1. For Form 1096 or Form 4804 filed, use Detroit Computing Center in the first name line to avoid Payer Master File unpostables.

    2. Enter Internal Revenue Service in the second name line.

    3. Use the SP Center address from which the Form 1099 is being issued as Filer's address.

    4. Use the IRS EIN (1099) in Box 1.

    5. Enter total number of Forms 1099 in Box 3.

    6. Check the box at the bottom that represents the type of Form 1099 being transmitted.

    7. Associate Form 1096 or Form 4804 with proper Forms 1099 (Copy A) and forward to the Receipt and Control Branch for batching and input.

Specifications and Annual Updates
  1. Systems Development staff update the application from the specifications described in Publication 1220, Specifications for Filing Form 1097-BTC, Form 1098, Form 1099, Form 3921, Form 3922, Form 5498, Form 8935, and Form W-2G Electronically (Catalog 61275P).

  2. Systems Administrator staff reviews the Publication 1220 and the program to ensure the following will be produced or updated in the coding:

    1. updates program to reflect the current tax year;

    2. updates and verifies the correct title of the form and other annual changes as instructed in Publication 1220;

    3. for Copy B only, Recipient Copy, the IRS toll free telephone number appears on the Copy B, Recipient Copy as 800–829–1040;

    4. that each SPC site name and address appears in Payer's address field before releasing the program.

    5. test the application adequately, provide a User's Guide and offer technical assistance as necessary.

  3. Data must not be entered into the previous year’s program. Program changes are released in sufficient time for production by December annually.

  4. Transmitter control (TCC) numbers are assigned by ECC (the filer location, names and addresses).

Researching and Resolving Undeliverable Forms 1099
  1. Research Undeliverables using CC ENMOD, CC NAMES, CC NAMEI, CC IMFOLE, CC BMFOLE, CC IRPTR, CC TPIIP, or access Accurint with the assistance of Accounting’s Unidentified Team, and RTR (submitted checks often contain a more current address). Check ENMOD, BMFOLE, or IMFOLE for recently-posted or pending address changes (some are made by the National Change of Address (NCOA)) Program and are indicated by the presence of TC 014 and the unique DLN of xx26399599999Y, with “xx” representing the IRSC of each campus. Update the Form 1099 using the more current address or the pending change-of-address. Do not change the address on CC ENMOD.

    Note:

    Any change created by National Change of Address (NCOA) will update the taxpayer's entity information.

    Note:

    CC TPIIP researches for taxpayer account information using components/fields other than the full SSN.

  2. If a yellow USPS forwarding label is attached, verify the address on the label using CC ENMOND and CC NAMES.

  3. Perfect any new address by entering into USPS.COM - Zip Code Finder. http://zip4.usps.com/zip4/welcome.jsp.

  4. If a better address is found, include Form 8822, Change of Address, with the re-mailing of the Form 1099. Completion of this form by the taxpayer authorizes an address change.

  5. Use CC ACTON to enter a history item, "8822toTP" if CC TXMOD is present on IDRS. Do not create a dummy module to input a history item.

  6. If no better address is found:

    1. E-filed tax returns involving the erroneous refund: void (“X” through) the Form 1099.

    2. After a second undeliverable Form 1099 has been returned and a paper tax return is involved with the erroneous refund: attach Form 9856, Attachment Alert, to send the Form 1099 (along with envelope and any stuffers) to Files to be associated with the return.

    3. Each time (no more than 2) a Form 1099 is returned undeliverable, use CC ACTON to enter a history item, "UNDL1099C"if CC TXMOD is present on IDRS. Do not create a dummy module to input a history item.

Form 1042S, Income Subject to Withholding Under Chapter 3

  1. Manual Refund Units will receive copies of Form 5205, Information About Your Income Tax Refund and Form 1042-S, Income Subject to Withholding Under Chapter 3, Internal Revenue Code in the Certification function on all Forms 1040-NR, U.S. Non-Resident Alien Income Tax Return, and Forms 1120-F, U.S. Income Tax Return of a Foreign Corporation, on which withholding amounts have been taken from interest paid on tax refunds. Retain Form(s) 1042-S and Form(s) 5205 part 3 in a suspense file until time to prepare the IRS Commissioner's Form 1042. For procedures regarding the 180-Day Rule, see IRM 20.2.4.7.6.

  2. Distribute Forms 1042-S as follows:

    1. Maintain Copy A in a suspense file by Taxpayer name.

    2. Forward Copy B to the taxpayer.

    3. Attach Copy C to the case file and complete processing required in IRM 3.17.79.3.1.

  3. Forms 1042-S should not be distributed until the refund action is complete. Forms 1042-S related to deleted refunds should be destroyed or adjusted as appropriate.

    Note:

    NMF will use the IRS EIN (Form 1099) for the processing of Form 1042-S.

Preparation of Form 1042 (IRS Commissioner's Form) Ogden Only

  1. The second week ending in January:

    1. Prepare an adding machine tape of all Form 1042S totals in the suspense file.

    2. Prepare a Form 1042. (Marked "ORIGINAL PREPARED BY IRS-MRU" across the top).

    3. Use the Internal Revenue Service as the withholding agent.

    4. Use the OSPC address.

    5. Use the IRS EIN (Form 1042-S) as the Employer Identification Number of withholding agent.

    6. Enter total number of Forms 1042S filed, on line 61a and 61b, of Form 1042.

    7. Enter total accumulated in (1)(a) above on lines 62a and 62b of Form 1042.

    8. Enter the tax liability on Lines 63a.

    9. Leave balance of Form 1042 blank.

    10. Return Due Date (RDD) for Form 1042 is March 15 (if weekend or holiday, the next available business day), NO EXCEPTION.

  2. Total in (1)(h), above, must agree with Forms 5205 and the credit on the module as a result of the monthly transfers from the 4610 Account.

  3. Associate Form 1042 with all Forms 1042S (Copy A). Forward to the Receipt and Control Branch for batching and input to Project 810.

  4. Destroy Part 3 of Form 5205.

Routing Form 1042S To Ogden Center (Cincinnati and Austin)

  1. Cincinnati and Austin Manual Refund functions will Express Mail all Forms 1042-S to the Ogden Accounting, Manual Refund function. Ogden should receive these required documents before January 31.

  2. Form 1042-S must be associated with Form 1042 for processing of the Commissioner's Form 1042.

Processing Miscellaneous Refunds

  1. When a refund to a taxpayer is required for an amount previously recorded as a deposit in the 2300 User Fee account Tax Exempt Government Entities (TEGE), the amount of the refund is scheduled on the Secure Payment System (SPS) or Form 1166 with Account Symbol 20X1807. These refunds are now dispersed by Bureau of the Fiscal Service (BFS) - See IRM 3.17.79.6.

General Fund Receipts Account Refunds

  1. Forward SPS/Form 1166 to RRACS for journalizing. This action will transfer the amount from the General Fund Receipt Account to the Refund Appropriation Account to record the taxpayer's refund.

  2. Upon receipt of the refund confirmation data from the RFC link, the RRACS activity will journalize the transaction.

  3. The Net Tax Refund Report (NTRR) will not reflect this transaction.

Receipt of Excess Collection Notice

  1. After receipt of Form 3731, Unidentified Remittance Voucher, or Excess Collection Record covering collections applicable to the Area or Territory Director's Office, or approved memorandum for transfers from the Deposit Fund account, the following is required:

    1. Assign a voucher schedule number in the same series number as assigned to SPS/Form 1166 for manual refunds.

    2. Transmit Form 1081 through IPAC/GWA (Government Wide Accounting System) entering the Submission Processing Center (SPC) as the Customer Agency and using the voucher number assigned above.

    3. Enter the proper refund appropriation to be charged 20X0903, 20FY0907 or 20X6879.09 (Deposit Fund) in "Appropriation, Fund, or Receipt Symbol" under the "Customer Agency" column.

    4. Enter the Agency Location Code (ALC), Department, Bureau and mailing address of the agency to be credited under the "Billing Agency" column. The Appropriation or Fund Symbols for the other agency accounts to be credited does not have to be input. All transfers of funds from the Submission Processing Center to other Accounting functions should be charged to Appropriation 20(FY)0913.

    5. Describe the reason for the transfer and any detail needed by the other agency under "Details of charges or reference " . Any necessary supporting documents required by the Chief Financial Officer (CFO), Accounting functions must be forwarded under separate cover to the CFO.

    6. Forward one copy of Form 1081 for input to RRACS team.

  2. Enter IRS Schedule Voucher Number on Form 3731 and return to the Unidentified clerk.

  3. File a copy of the Form 1081 transmission in a permanent file by transmission number in accounting period order for subsequent site audit by the General Accountability Office (GAO).

  4. See IRM 3.17.79.11.6 for instructions for reporting the Form 1081 transmitted on Form 224. Place a copy of the Form 1081 transmission in a report file for forwarding to National Office.

  5. Funds transferred from the field office to the Submission Processing Center via Form 1081 are made to Appropriation 20X0903. If the SP Center disagrees with the charges, initiate an Form 1081 to charge back the difference to the CFO.

Refunds or Reimbursement of Photocopy Fees (Form 4506)

  1. The following criteria require use of the prepaid photocopy refund/reimbursement process:

    • Prepaid photocopy fees when a copy of the return cannot be provided.

    • Any overpaid portion of prepaid photocopy fees.

    • Prepaid photocopy fees when requests are rejected.

  2. Reimbursements for prepaid photocopy fees are processed using the National Standard Application (NSA), Photocopy Fee Refund System (PHOREF). These refunds are initiated by the Return and Income Verification (RAIVS) function.

  3. No credit interest is paid on these reimbursements.

  4. All Photocopy Fee refunds are disbursed from Treasury Account Symbols (TAS):

    1. 20X5432.000 (prior year receipts)

    2. 20X5432.007 (current year receipts)

    as identified by RAIVS, and certified through the Bureau of the Fiscal Service, Secured Payment System. This disbursement file is reflected on each Submission Processing Center Form 224.

  5. Once the Final Photocopy Fee Refund Listing is reviewed for accuracy, completeness and generated by RAIVS, the listing must be approved and signed by a designated Authorized Approving Official with an active Form 14031 on file in the Accounting operation. The Final Photocopy Fee Refund Listing, consisting of prior year and current year items, is forwarded to Accounting for processing. Accounting will complete the PHO2 role in PHOREF, schedule and certify the refund in SPS.

  6. A copy of the Final Photocopy Fee Refund Listing/Schedule must be maintained in a monthly refund file.

Refunding From 6800 Account, Excess Collections

  1. Credits which remain unapplied for 12 months or longer are generally transferred to 6800 Account. Sometimes, these credits are subsequently identified for a refund. See the statutory limits discussed in IRM 25.6, Statute of Limitations.

  2. Amounts are refunded from Excess Collections, 6800 Account.

Refunding from 4610 Account, Unapplied Advance Payments (ANMF Accounts)

  1. Amounts representing cash bonds or unapplied advance payments are held in 4610 Account, until deficiency assessments are made and the payment is applied, or part or all of the payment is refunded. The submission of cash bonds or advance payments stops the running of interest on the amount of any deficiency covered by the payment.

  2. No interest is allowed on any part of the payment(s) refunded to the taxpayer, if the payments are prior to October 22, 2004 per Rev. Proc. 84–58 and Rev. Proc. 2005-18. Credit interest is allowed on deposits submitted after October 22, 2004 per IRC Section 6603(d). A Section 6603(d) payment is identified on the tax account by TC 640 with blocking series 990–999. See IRM 20.2.4.8.1, Interest - Overpayment Interest, Cash Bonds for additional information.

  3. Amounts in excess of the deficiency assessments are refunded. To refund amounts in excess of the deficiency assessment:

    1. Prepare Form 3753.

    2. No interest is allowed on these overpayments.

    3. Forward case file with supporting documentation to the Manual Refund function. Continue processing as outlined in IRM 3.17.79.3.2 and IRM 3.17.79.3.5.

    4. The Manual Refund function prepares, schedules, certifies and transmits the refund schedule via SPS. Forward Schedule to RRACS for further processing.

  4. There may be occasions when the taxpayer responds to the 316C Letter, and the taxpayer requests all or part of the payment be refunded.

    1. The area receiving the response from the taxpayer to the 316C Letter initiates Form 3753.

    2. Forward case file with supporting documentation to the Manual Refund function. Continue processing as outlined in IRM 3.17.79.3.2 and IRM 3.17.79.3.5.

    3. The Manual Refund function prepares, schedules, certifies and transmits the refund schedule via SPS.

    4. Enter Schedule Number on Form 3244A, Payment Posting Voucher Examination Division. Route copy of Form 3244A to SC Examination. Forward refund schedule to RRACS for further processing.

Processing Unapplied Remittance Refunds (Form 4878)

  1. When Accounting Operations receive generated Form 4878, Voucher and Schedule of Payments, from IDRS, these represent items identified for application to another government agency or for refund to the taxpayer because the correct application cannot be identified.

  2. Prepare summary Voucher and Schedule of Payments in triplicate. Attach Form 4878 to each SPS/Form 1166 copy. Original copy (first) of Form 4878 must go to the Bureau of the Fiscal Service (BFS) Regional Financial Center (RFC).

  3. Compare and reconcile the total with the total shown on the summary SPS/Form 1166.

  4. Assign schedule number to SPS/Form 1166.

  5. The Certifying Officer or designee detaches original and duplicate SPS/Form 1166 with Form 4878 attached, (first and second copy) and sends to the RFC.

  6. See IRM 3.17.63, Redesigned Revenue Accounting Control System, for the appropriate RRACS Screen. RRACS will serially number Form 8166 and enter the number on the related SPS/Form 1166, and return these forms for filing.

Audit or Collection Adjustments; Refunds in Names Other Than the Taxpayer-Form 3460, Transmittal Memo

  1. Form 3460 (Transmittal Memo Accounting Control Document) noted "Manual Refund" with Audit and Collection adjustments of IMF and BMF returns may be received for processing.

  2. "Sensitive" , "Hardship" , Joint Committee, Civil, or Tentative Carryback Allowances are included with cases indicating that a refund check is to be issued in a name other than that of the taxpayer, and a permanent name change is not involved. Joint Committee cases must have the accompanying documents from the Joint Committee attached.

  3. The related returns are not attached.

  4. A completed Form 3753 giving the DLN of the original return, is received for each case. Form 3753 must have specific reasons written in "Remarks" section. If not complete, requests will be rejected see IRM 3.17.79.3.2.2.

  5. Audit adjustment is substantiated by Form 1331B, scanned copies of taxpayers' letters, or Form 5344.

  6. Data Processing (DP) tax adjustments are received with Form 3354, or IDRS Form 5147, IDRS Transaction Record.

  7. If Form 5344 or Form 3354 is not noted Hold Code "1" or "2," return case to the Adjustment function.

Refunds for Less Than $1.00

  1. Overpayments of less than $1.00 are systemically cleared from the module by the posting of a TC 386. If a taxpayer requests a refund of an overpayment of less than a $1 for IMF accounts, see IRM 21.4.4.3.1, Requests for Refund Less Than $1.00.

  2. Requests for a refund of an overpayment of less than $1.00 for BMF accounts must be issued as a manual refund request, see IRM 21.4.4.2.1, Requests for Refund Less Than $1.00.

U.S. Virgin Islands Resident - Cover Over (AUSPC Only) Excluding Additional Child Tax Credit Coverovers

  1. U.S. citizens and resident aliens who are bona fide residents of the U.S. Virgin Islands (USVI) during the entire taxable year, must file income tax returns with the USVI Bureau of Internal Revenue. They are generally not required to file U.S. returns, except to pay self-employment tax (Form 1040 SS), unless they fail to report all of their income, identifying its source and fully pay the correct amount of tax to the USVI. The USVI will send certain income tax returns to IRS with a list and a certification that the individuals are legal residents in cases where cover over to the USVI is necessary because there is U.S. withholding or net collections of income tax.

  2. Accounting receives from IMF International Accounts Management:

    1. Copy of verified list of taxpayers.

    2. Original Memorandum to the Treasury of the Virgin Islands (V.I.).

    3. Form 3809, Miscellaneous Adjustment Vouchers, to process TC 820 to debit each taxpayer's account and transfer the credits due to the Virgin Islands.

    4. DO NOT PROCESS MANUAL REFUNDS DIRECTLY TO VIRGIN ISLANDS GOVERNMENT.

  3. Accounting balances Form 3809 to the Form 3753. Forms 3809 are numbered using area File Location Code (FLC) 66, see IRM 21.8.3 for Blocking Series chart and Form 813 prepared. Refund schedule number is assigned and Form 3753 is input to SPS (formerly ECS) for issuance of a consolidated paper check. The Certifying Officer certifies the request and it is transmitted to BFS (Bureau of the Fiscal Service) for payment.

  4. Documents (Form 3809 and Form 3753) are delivered to RRACS Team for preparation of Form 8166, input to RRACS and distribution.

Military Cover Over for U.S. Virgin Islands, Commonwealth of Northern Mariana Islands (CNMI) and American Samoa Residents (IRC 7654)
  1. The Internal Revenue Service must cover over to the respective territories the income taxes collected with respect to bona fide residents of U.S. Virgin Islands, CNMI or American Samoa who join the U.S. Armed Services.

  2. After appropriate research by IMF International Accounts Management, Accounting receives:

    1. Copy of verified listing for the individual Territory.

    2. Cover letter addressed to the territory Bureau of Internal Revenue (BIR) Disclosure Officer for each tax year.

    3. Form 3809, Miscellaneous Adjustment Vouchers, to process TC 820 to debit each taxpayer's account and transfer the credits due to the individual Territory.

    4. One Form 3753, Manual Refund Posting Voucher, to issue consolidated check to the Government of the appropriate Territory.

  3. Accounting balances Form 3809 to the Form 3753. Form 3809 are numbered using area FLC (File Location Code) 66, see Blocking Series chart and Form 813 is prepared. Refund Schedule number is assigned and Form 3753 is input to SPS for issuance of consolidated check to the appropriate Territory. The Certifying Officer certifies the refund and it is transmitted to BFS for payment.

    Payments are made by the following:
    American Samoa -ACH Direct Deposit
    Northern Mariana Islands -Same Day Pay Direct Deposit
    U.S. Virgin Islands -Paper Check
  4. Documents (Form 3809 and Form 3753) are delivered to RRACS Team for preparation of Form 8166, input to RRACS and distribution to:
    Savali Velega Jr.
    Treasurer/Director
    Department of Treasury
    American Samoa Government
    Pago Pago, American Samoa 96799

  5. Forward lists and Form 3753 to local Quality Assurance team for review.

Wire Transfer of Funds to American Samoa
  1. Taxpayers may initiate the request for a wire transfer refund with Ogden Submission Processing Center by filing a Form 8302 (Rev. 12-2009), Direct Deposit of Tax Refund of $1 Million or More, other supporting documentation, their return or claim. Refunds for amounts less than $1 million, for any single tax year, must be issued by check.

  2. Form 3753, Manual Refund Posting Voucher, is prepared by the area initiating the refund and forwarded with the complete case file to Accounting Operations for review and preparation of refund schedule and voucher (SPS/Form 1166).

  3. The Manual Refund function will verify the attachments and other backup supporting documentation filed with Form 8302.

  4. Verify the Treasurer/Director's signature appears on the accompanying backup supporting documentation, the bank official's name, address and telephone number, etc. If any of the pertinent information is not provided by the taxpayer, you must issue the refund by check, as provided in IRM 3.17.79.5.3. Prepare correspondence to the Treasurer/Director stating, "the refund will be issued by check rather than by same day pay or wire transfer," when Form 8302 is incomplete or lacks backup supporting documentation.

  5. The requirements for a deposit ticket or check need not be followed in this instance due to the verification of the Samoan government's bank, the ABA number of the bank, and the bank account number of the Department of the Interior. Other supporting documentation may also be included.

  6. If Form 8302 is satisfactory, note in the remarks section of Form 3753, "FEDLINE or same day payment to taxpayer's bank name, ABA number, and taxpayer's account number."

  7. Route the voucher to the Philadelphia RFC at the address below:
    Federal Building - ATTN: FEDLINE
    5000 Wissahickon Ave
    Philadelphia, PA 19144

  8. Once the refund voucher has been forwarded, the case file is returned to the originating organization for further processing. The originating organization is also informed when the Regional Financial Center (RFC) support listing confirms the receipt of the refund after being wired by Philadelphia RFC.

Refunding From 20x1807 Account, A Miscellaneous Revenue Account

  1. Refunds from the MISC Revenue account includes disbursements for lockbox banks, credit card charge-backs, Passive Foreign Investment Company (PFIC) and Arbitrage rebates (Form 8038-T ONLY).Exhibit 3.17.79-4

  2. Treasury Financial Management: Part 6 Chapter 3000 Section 3050-Payments from Account 20X1807 Agencies initiating payments from account 20X1807 must do so via the Secured Payment System. An authorized agency certifying officer must certify these payments.

  3. Maintain a file of paid disbursement vouchers (Form 3753) with supporting documents for payments made from this account. Make records available to internal auditors and auditors conducting on-site audits for GAO.

  4. TFM Part 6 Chapter 3000 Section 3050, requires that the IRS provide notification and supporting documentation of refunds totaling over $100,000 (Per SF224). Send E-mail communication to:

    Treasury and IRS Contacts
    Credit Accounting Branch, FASD AC Management Bureau of the Fiscal Service Nilda.Clemente@fms.treas.gov and Scott.Barber@fms.treas.gov
    Fax to: 202-874-7900
    Submission Processing Accounting and Tax Payment Branch Ronnie.Maldonado@irs.gov
    Cathy.R.Andrews@irs.gov

Preventing Duplicate Refunds

  1. Treasury Inspector General for Tax Administration (TIGTA) and other management internal control reviews cited a high incidence of duplicate refunds. To improve internal controls and reduce these weaknesses, the Service:

    1. Updated IRM procedures to cross-reference (via IDRS TC 971), the TIN and credit source document file locations and indicated on Form 3753 and Form 5792 in the remarks section where the credit and source documents are filed.

    2. Emphasized in correspondence a reminder to all field executives the importance for initiators of manual refunds to monitor accounts (e.g., IDRS in 'B' Status, TC 840) as well as incorporating similar descriptions to research and monitor requirements in the ADP and IDRS Information, Document 6209 Catalog No. 614620, Section 6.

    3. Emphasized to all employees to not close the control base prematurely before the TC 840 posts. This premature closure may allow a generated refund (TC 846) to be released because the account is not being monitored adequately for subsequent transactions to post, allowing a generated refund after releasing the manual refund. The refund processing system allows a pending generated refund (PN 846) to be intercepted or stopped via IDRS CC NOREF (BMF only).

    4. Added procedures in IRM 21.4.4, Manual Refunds, to update IDRS and to monitor taxpayer accounts, prepare approval documents, input IDRS actions and other commands (e.g., CMODE whether similar account activity is occurring by another employee or in another part of the country). Since these manual refunds are considered high risk and exception-processing, it is imperative that initiators research and monitor accounts to prevent duplicate refunds or erroneous refunds.

  2. To prevent the release of duplicate refunds caused by improper monitoring of accounts and to detect subsequent manual refunds (TC 840), several IDRS changes occurred.

    1. Warning messages on input screens for CC RFUND, "Possible Duplicate RFUND/Request Completed," alerts initiators of the possibility of a duplicate refund. Initiators will not have the option of interrupting CC RFUND prior to end of day runs.

    2. If a duplicate is detected, process it as an erroneous refund per IRM 21.4.5, Erroneous Refunds. At Center discretion, cases may be transferred to the area which initiated the error.

    3. Employees should not close the control base prior to the posting of the TC 840. These inappropriate closing actions may contribute to causing erroneous refunds.

    4. TC 971 AC 664, Manual refund processed by Accounting was created to help mitigate duplicate and erroneous refunds on Form 3753, Manual Refund Posting Voucher. Presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund is in process.

  3. IRM 21.4.5, Erroneous Refunds, and IRM 3.17.80, Working and Monitoring Category D, Unassessed Erroneous Refund Cases in Accounting Operations describe actions the Internal Revenue Service may take to identify, track and recover erroneous refunds. Only the cases deemed as a Category D (erroneous refunds, which are unassessable refunds) should be forwarded for recovery to Accounting. These are limited to right of offset, voluntary repayment and requests to Compliance to recommend filing civil suit.

  4. Provide feedback to areas causing erroneous refunds to occur. Providing feedback is considered a method of maintaining internal controls. Feedback is also a mechanism in documenting to management officials the areas causing trends in error rates, and requiring them to take corrective actions.

Cancelled Refund Checks (Standard Form or SF1098)

  1. During processing, it may be necessary to stop a refund via CC NOREF for BMF only (See IRM 3.14, Notice Review).

    1. The refund is cancelled by the RFC and the cancellation credit for the item is returned via Form 1098 Schedule of Cancelled or Undelivered Checks. The Reason Code 01 indicates the refund was stopped via CC NOREF (BMF only).

    2. The credit will systemically post to the taxpayer module as a TC 841 and set a "P " Freeze on the module.

    3. Cancellation credits are returned to IRS via Form 1098 (Reason for Return Code) and post back to the taxpayer's account as Master File TC 841. See IRM 3.17.79.10.1.1, Standard Form (Form 1098) - Reasons for Return (RC) Codes from Bureau of the Fiscal Service (BFS).

Treasury Checks Returned to the Submission Processing Center and Regional Financial Center

  1. Refund checks are returned to Regional Financial Centers for reasons other than being "undeliverable" . Taxpayers may return tax refund checks directly to the local offices or to Submission Processing Centers and at times may even return them directly to the RFC. Tax refund envelopes have the return address of the issuing RFC.

    1. Master File (MF) and Automated Non-Master File (ANMF) refund checks returned to the Submission Processing Center must be cancelled and be stamped "Not Negotiable" by Refund Inquiry function or Deposit function and forwarded to the RFC for cancellation as outlined in IRM 21.4.3, Refund Inquiries - Returned Refunds/Releases. The RFC prepares Form 1098 Schedule, Form 1098 listing for the MF, ANMF, Photocopy Fee, and IRAF refund cancellations.

    2. The cancelled MF 1098 cancellation credits are returned from RFC's to Enterprise Computing Center (ECC) - Martinsburg, for posting to taxpayer's accounts. The confirmed Form 1098 and related "Form 1098 listing" (includes Treasury Financial Service (TFS) 145/EFT/DD and 1185/Check Claims credits) on cancelled ANMF, Photocopy Fee, and IRAF refunds.

  2. The "Form 1098 listing" provides a summary of each cancellation by type and Reason for Return Code.

Standard Form (Form 1098) - Reasons for Return (RC) Codes from Bureau of the Fiscal Service (BFS)
  1. The following types of credits may be included on an "Form 1098 listing" for MF, ANMF, Photocopy Fee and IRAF refund check cancellations.

    1. Available Check Cancellation (ACC) credits for undeliverable refund checks (returned by the U.S. Postal Service); returned checks (from taxpayers or TP representatives); and intercepted refund checks (intercepted at Submission Processing Center request by the Regional Operating Center).

    2. Rejected SUPER/Direct Deposit refunds (i.e., Electronically Filed Returns (ELF)), which are controlled on TFS Form 145 (tape processing).

    3. Unavailable Check Cancellation (UCC) credits returned under Recertification which Check Claims determines a check is still outstanding, and are controlled on TFS Form 1185 (tape format). These credits are returned to ECC as a result of an Unassessable or Check Claim (Form 1184 via IDRS Command Code CHKCL) .

  2. Reason for Return Codes shown on the Form 1098 listing identify the type of the cancellation or credit as follows:

    1. Code 01 Checks intercepted by request (CC NOREF or refund holds). Returned by the Regional Financial Center (RFC), these credits will post as a TC 841 with a unique blocking series of "55555" and set a "P-" Freeze.

    2. Code 02 Checks returned to the RFC by the U.S. Postal Service as undeliverable. These credits will post as TC 740 credit with a "99999" blocking series and sequence number and set an "S-" Freeze.

    3. Codes 03, 08 or 10 (All other codes not listed). Returned checks other than undeliverable will post as TC 841 credit, Code 8 with a "88899" and Code 3 with a "99999" blocking series and sequence number and set a "P-" Freeze.

    4. Code 09 Unavailable Check Cancellation Credit/Recertification credit returned as a result of non-receipt claim (IRS Form 3911, Taxpayer Statement Regarding Refund or input of CC CHKCL/SF1184). This credit is returned after both the RFC and BFS Check Claims Group determines the check is still outstanding. These credits post as a TC 841 with a unique blocking series and sequence of "88888" and do not set a "P-" Freeze.

    5. Code 09 Reclamation credit. Credit returned as result of a non-receipt claim after adjudication by the Check Claims Group reclaims the amount from the financial institution. No Freeze, TC 841 with unique blocking series and sequence of "88000."

    6. Code 09 Outstanding check. Credit returned as the result of a paper check claim (Form 1184). No Freeze, TC 841 with unique blocking series and sequence of "88111" .

    7. Code 11 Taxpayer correspondence attached or cancelled Photo Fee refunds, that would not post back to the Master File. If Photocopy Fee Refund (Form 4506) Send taxpayer correspondence to Photocopy Fee function with supporting cancellation (Form 1098) documents.

    8. Code 40 Limited Payability (LP). Expired check credit. Posts S- Freeze, TC 740 with unique blocking series and sequence "66666."

    9. Electronic Fund Transfer (EFT) 60 Invalid/missing Routing Transit Number (RTN).

    10. EFT 61 Invalid/blank bank account or account type (c) checking or (s) savings.

    11. EFT 62 Direct Deposit Check receiving financial institution non-ACH participant.

    12. EFT 63 EFT payments without financial organization address on Financial Organization Master File (FOMF).

    13. Code 71 Unavailable check cancellation offset. Code returned as a result of an agency claim, only the Treasury Offset Program (TOP) offset amount of the original payment is returned. See IRM 21.4.6, Refund Inquiries - Refund Offset. Transaction Code 841 with unique blocking series and sequence "88888" .

    14. Code 72 Unavailable check cancellation partial payment. As a result of an agency claim, only the net amount of the original payment is returned following the TOP offset (See IRM 21.4.6, Refund Offset). Transaction Code 841 with unique blocking series and sequence "88888" .

  3. Send all other taxpayer correspondence to Refund Inquiry with supporting cancellation documents.

  4. See Exhibit 3.17.79-8, Reason for Cancellation Codes, for further information.

Confirmed Standard Form (Form) 1098 Cancellations from Bureau of the Fiscal Service (BFS)
  1. Receive confirmed copy of Form 1098, Schedule of Canceled or Undelivered Checks, from the RFC with listings on MF cancellations. Within 10 workdays of receipt of the Form 1098:

    1. Verify total on Form 1098 with total of Form 1098 listing. If there is a difference, contact the Regional Financial Center and resolve the discrepancy (See IRM 3.17.79.10.7, Incorrect Cancellation Amounts).

    2. Journalize as outlined in IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System.

    3. Route one copy of the Form 1098 schedule and Form 1098 listing to the Refund Inquiry function.

    4. Route one copy to the Notice Review function and one copy to the Correspondence function. Correspondence function will associate the Form 1098 to any correspondence received from the taxpayer or his representative. The RFC will record the SSNs and EINs on letters before forwarding correspondence to IRS.

  2. Receive confirmed Form 1098 schedule from the Regional Financial Center along with the Form 1098 listing on ANMF, Photocopy Fee, IRAF cancellations. Upon receipt of confirmed cancellation schedules:

    1. Verify total of Form 1098 schedule with totals of amounts shown on Form 1098 listing. If there is a difference, contact the Regional Financial Center and resolve the discrepancies (See IRM 3.17.79.10.7 for procedures).

    2. Control all accounting documents through the Redesigned Revenue Accounting Control System (RRACS) (Refer to IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System).

    3. Research using the copy of SPS/Form 1166 Voucher and Schedule of Payments and supporting refund documents (Form 3753/Form 5792) showing principal and interest, File Location Code or Universal Location Code, item count and line number on the Net Tax Refund Report. In extremely rare cases, this same research must be accomplished on Form 1081, SF1184 and TFS Form 3813.

    4. Prepare Form 3245, Posting Voucher-Refund Cancellation or Repayment (See Exhibit 3.17.80-11, for blocking series), for each taxpayer indicated on the Form 1098 listing, except for Photocopy Fee refund cancellations. For all Code 2 check cancellations, input TC 740 in the amount of the undelivered refund. For all Codes 3, 8 or 10 check cancellations, input TC 841 in the amount of the returned refund.

    5. Prepare Form 813.

    6. Forward Form 1098, Form 813, Form 3245, abstract documents and NTRR information for input to RRACS.

      Note:

      Form 1664X or listing that has been processed will be forwarded to the Taxpayer Relations function.

    7. File copy of Form 1098 in a Suspense File for monthly preparation of Net Tax Refund Report (NTRR) for balancing purposes.

    8. File original Form 1098 in the closed file for balancing and for the monthly preparation of the NTRR.

    9. Forward one copy of the Form 1098 Schedule, Form 1098 listing and refund document (e.g., Form 3753, Manual Refund Posting Voucher or Photo Fee listing) for Photocopy Fee refunds to the Photocopy Fee/RAIVS function.

  3. Should Form 1098 Listing not arrive in the Accounting area within a reasonable amount of time, search within the Center (e.g., Refund Inquiry, Notice Review, Photocopy Fee/RAVIS Units or other Accounting Operations work areas) before seeking a replacement.

    1. If Form 1098 Listing does not arrive within two (2) weeks of downloading schedules from CARS/IPAC, contact ECC (through User Support or the Help Desk) to ensure the cancellations were posted to Master File. If unable to locate, open an Enterprise Help Desk or Knowledge Incident/Problem Service and Asset Management (KISAM)Ticket and assign it to EOPS-ECC-ECPV-PROCESSING VALIDATION.

    2. Address requests from Chief, Accounting Control/Services Operations for additional copies of Form 1098 Schedules/Listings to: Chief, Processing Validation Section, Enterprise Computing Center (ECC) - Martinsburg, OS:CIO:I:EO:MC:O:W:PV, Stop 535, 250 Murall Drive, Kearneysville, West Virginia 25430.

    3. Provide the CARS/IPAC confirmation dates, item count, dollar amounts and refund schedule numbers in correspondence sent to ECC.

    4. Managers or Seniors should provide guidance when Form 1098 Listings do not arrive in your function timely. Contact ECC only after exhausting your search in other areas of the Center as they may have been mis-routed within your own Center.

    5. The guide used by the Extraction function or the Media Transport IRM may assist you in locating routing designations for documents.

    6. Center Accounting Operations must carry unresolved Form 1098 refund cancellations journal actions on the RACR into the following month if the Form 1098 Listing has not arrived by month-end.

Tax Forms Standardization (TFS) 3813, Schedule of Uncollectible Checks
  1. The Regional Financial Centers complete TFS Form 3813 to document corrections to payment references. All TFS Form 3813 contain sufficient cross-reference information to identify items corrected and the reason for the correction.

  2. FMS Form 3813 reverse previously cancelled items; debits the agency; is followed by another Form 1098 to correct the cancellation. With some variations at specific Regional Financial Centers, both actions occur on a weekly basis.

  3. The RFC will enter the following information on the Form 3813.

    • BUREAU SCHEDULE: Number - This is the number and date of the original cancellation. This can be used by the agency to locate the cancellation that is being reversed.

    • BUREAU SCHEDULE: Date - This is the date and number of the deposit ticket that was used to transmit cancellations, including the ones that have rejected.

    • O/D, NO., DATE AND AMOUNT - Date of Form 5515, Deposit Voucher.

    • CHECK DESCRIPTION, REMITTER, AND REASON FOR RETURN - This column provides the reason for the reversal and the full description of the payment.

    • AMOUNT OF CHECK - Amount of the payment being reversed.

    • SYMBOL OF FUND TO BE REDUCED - Agency appropriation fund that is being reduced.

Processing Intercepted Refund Checks (Reason for Return Code 01)

  1. Master File checks (TC 846) are cancelled and controlled under Form 1098, Schedule of Cancelled Checks, and forwarded to ECC on tape for posting TC 841's to the taxpayers’ accounts. These checks are listed on Form 1098, and forwarded to the appropriate Submission Processing Center Agency Location Code (ALC) to be used in posting credits to taxpayer accounts.

  2. ANMF, IRAF and Form 4506 Photocopy Fee, checks which are pulled or intercepted are cancelled and controlled under Form 1098. The Form 1098 schedule and listing are forwarded to the ALC. Accounting Operations forwards a copy of the Form 1098 schedule and Form 1098 listing reflecting Photocopy Fee (4506) cancellations to the Photocopy Fee/RAIVS function. IRM 21.2.5, Miscellaneous Forms and Processing, was updated requiring Units to maintain these credit documents for research and subsequent re-issuance of the Photocopy Fee Refund if correspondence is received from the taxpayer. Prepare Form 3245 for all other cancellations with the following information:

    • Posting Voucher - enter two-digit FILE LOCATION Code from ENMOD or CFOL

    • SSN/TIN - enter SSN or EIN with an "N" if NMF or "P" if IRAF

    • Return Period - enter TAX PERIOD (YYYYMM)

    • MFT - enter applicable MFT

    • Name - taxpayer's first and last NAME and underline the NAME Control

    • Remarks - enter comment to include the following: Reverse TC 846 or TC 840 (MMYYYY), intercepted - Code (X) SF 1098 number (XXX-X-XXX)

    • Cancellation Column

    • Schedule date - enter the date of the TC 846 or TC 840 (MMDDYYYY)

    • TC - enter TC 841

    • Amt of Check - enter the AMOUNT shown on the SF 1098 listing

    • Check Number - enter refund check number

    • Schedule Number - enter refund schedule number

    • Repayment Column

    • Date Received - Blank

    • TC - Blank

    • Amt of Check - Blank

    • TC - 772

    • Interest - enter the amount of credit interest paid as the TC 772 amount (NMF ONLY)

    • Date - enter current date (MMDDYYYY)

    • Employee ID/Badge - enter preparer’s SEID and initials

    • This voucher relates to - Check the "Other" box and enter SF1098

    • Document Locator Number - stamp with DLN as follows: Digit 1-2 Universal Location Code, Digit 3 Tax Class, Digit 4-5 Doc Code 45, Digit 6-8 Current Julian Date, Digit 9-11 Blocking Series 555, Digit 12-13 Serial Number, beginning with 00, Digit 14 Current list year

    Note:

    The DLN Blocking Series for these cancellation credits (Digits 9 through 13) will always be "55555" .

Returned Check Cancellations - Manually Prepared Individual Master File (IMF) and Business Master File (BMF) (RRCs 02 and 03)

  1. Code 02 Within 10 workdays of receipt of the Form 1098 schedule and Form 1098 listing, prepare Form 3245, Posting Voucher-Refund Cancellation or Repayment, for all Code 02 check cancellations to input a TC 740 in the amount of the undelivered refund.

  2. Stamp "Refund Check Cancelled" on applicable Refund Schedules (1166/1167) and supporting refund document (Form 3753, Form 5792, and/or Refund Voucher List).

  3. List on Form 813, Document Register, all Form 3245 having the same Office and Tax Class codes. Hold these documents until all work on Form 1098 is complete, then route the original copy of the Form 813 with Form 3245 to Batching and Numbering.

  4. Forward Form 1098 schedule, Form 1098 listings, and all supporting refund documents for undeliverable refunds (Code 02) to Refund Inquiry.

  5. Forward second copy of Form 813 for input to RRACS for journal action.

  6. Code 03 Within 10 workdays of receipt of Form 1098 Schedule and Form 1098 listing, prepare Form 3245 for all Code 03 check cancellations to input TC 841 in the amount of the returned check.

  7. On Form 813, list all Forms 3245 (See Exhibit 3.17.79-7), Blocking Series Chart for Document Code 45, Form 1098 and TRACS Processing having the same Office Code (formerly known as DO)/Business Operating Division (BOD)) and Tax Class codes. Hold these documents until all work on the Form 1098 is complete, then route the original Form 813 with Form 3245 to Batching and Numbering.

  8. Forward for input to RRACS for journal action.

Processing Returned Automated Non-Master File (ANMF) Checks

  1. Within 10 workdays of receipt of Form 1098, associate refund documents (e.g., Form 3753, Form 5792, Form 1331B, and/or Refund Voucher List), and accompanying forms (e.g., SPS or Form 1166) with the Form 1098 Schedule and Form 1098 listing.

  2. Stamp "Refund Check Cancelled" on applicable Refund Schedules (SPS or Form 1166), and supporting documents (Form 3753, Form 5792, Form 1331B, and/or Refund Voucher List).

  3. Cancelled Refund Schedules are photocopied (three copies). Taxpayer correspondence and any other attachments are also photocopied.

    1. Forward one copy of Form 1098 Schedule, Form 1098 Listing and cancelled refund documents with the original Form 1098 Schedule and Form 1098 listing to the RRACS function for journaling. The copy is returned with a second journal number to be retained for future reference.

    2. one copy of Form 1098 Schedule, Listing and cancelled refund documents is kept in Suspense File. Destroy this copy upon receipt of journaled copy.

    3. one copy of the Form 1098 Schedule, listing and cancelled refund documents is routed to the Photocopy Fee function if refunds on the Form 1098 are photocopy fee refunds (Form 4506).

    4. one copy of the Form 1098 Schedule, Form 1098 Listing and cancelled refund documents are routed to Refund Inquiry if refunds are undeliverable refunds (Code two).

    5. Some refunds require "special handling" by Refund Inquiry (Form 3913, Acknowledgment of Returned Refund Check). These refund cancellations require an additional copy to be forwarded to the requesting Tax Examiner in the Refund Inquiry function.

  4. Processing Form 1331B.

    1. Prepare Form 4338 (Information or Certified Transcript Request). Submit completed form to ANMF function to request a photocopy of the ANMF Transcript.

    2. Upon receipt of the copy of the ANMF Transcript, prepare Form 3245. Use TC 841 for Codes 03 and TC 740 for Code 02. Verify information on Form 3245 with ANMF Transcript and Form 1331B. Photocopy (three copies) of the ANMF Transcript and Form 3245. Associate with photocopies of the Form 1098. Associate Form 3245 and ANMF Transcript with original Form 1098 Schedule, listing and cancelled refund check documents.

  5. Prepare a Document Transmittal to route the original Form 3245, ANMF Transcript, original Form 1098 Schedule, Form 1098 Listing and cancelled refund documentation to RRACS for journaling.

  6. Forward the Form 3245 with a copy of the Form 1098 to ANMF Accounting.

  7. The journaled Form 1098 Listing is forwarded to the Refund Inquiry function for processing as outlined in IRM 21.4.1, Refund Inquiries.

Returned Individual Retirement Account File (IRAF) Checks

  1. Changes to the MFT were revised in 2005 to allow IRAF overpayments to be computer generated. In the meantime, there could be instances when Centers receive these returned items issued prior to 2005.

  2. Prepare Form 3245 for each cancellation credit reflecting returned IRAF checks, within 10 workdays of receipt of Form 1098 Schedule and Form 1098 Listing.

  3. The transaction code for Form 3245 depends on the Reason for Return Code displayed on the Form 1098 Listing. Some Codes 02 cancellations require input of TC 841.

  4. Prepare Form 813 for all Form 3245 containing the same Office Code (formerly known as DO/Business Operating Division (BOD) and transaction codes. Route original Form 813 and corresponding Form 3245 to Batching and Numbering for processing.

  5. Forward original and copy of Form 1098 Listing and duplicate copy of the Form 813 to RRACS for journaling.

  6. All Form 1098 Listings should be noted by the RRACS Journaling function as "deposited" and routed for filing.

Correcting Erroneously Posted Transaction Code (TC) 841

  1. Due to systemic problems (e.g., cancelled for wrong check number or with the incorrect check symbol number, etc.), the Bureau of the Fiscal Service, Regional Financial Center (RFC) may advise the Internal Revenue Service to correct a payment cancelled in error by the RFC . These items may require reversal through the input of a TC 843. A Treasury TFS Form 3813, Schedule of Uncollectible Checks, will be received from the RFC to correct this information explaining the nature of the correction.

  2. When TFS Form 3813 is received, research 4970 Account for a matching credit.

    If the credit Then
    Is there
    1. Write "No Second Journal Needed" on the Form 3813 by the taxpayer name/TIN.

    2. Photocopy Form 3813 to retain for possible future reference.

    3. Prepare Document Transmittal and attach to TFS 3813 and forward to RRACS for journal action

    Is not there
    1. Research IDRS or Form 1098 listings in Suspense File for a matching TC 841.

    2. If no data on IDRS, request IMFOL, research CFOL, or complete MFTRA for each taxpayer listed.

    3. Determine which MFT and tax period the TC 843 should be processed against.

  3. To correct erroneously posted TC 841:

    1. Prepare Form 3245 for each correction. When inputting the TC 843, use the date and amount of the related TC 841.

    2. Enter in remarks section of the Form 3245 the explanation for the correction as indicated on the FMS Form 3813.

    3. Create an open control on the IDRS tax module and monitor until the TC 843 posts.

    4. When the TC 843 is pending, input a TC 470, using CC REQ77.

    5. Monitor the tax module using TXMODN (notice information) at the beginning of each cycle. The posting of the TC 843 will put the taxpayer into debit balance. If necessary, contact the Notice Review function to intercept the first balance due notice.

    6. Establish a case folder and monitor the tax module until BFS/RFC returns the good credit. Input additional TC 470(s), if the original will expire prior to the posting of the credit. When the credit has posted, close the IDRS control base and destroy the case file.

  4. When received from the RFC, credit items are journaled into the 4970 Account.

  5. The TFS Form 3813 should provide necessary information about the reason for the TFS 3813 reversal and when the Form 1098 should be forwarded to the Submission Processing Center Agency Location Code (ALC) by the Regional Financial Center (RFC).

  6. Input additional TC 470(s) if the original notice holding code will expire prior to the posting of the credit.

    1. Monitor case files and tax modules of pending items each month or until the RFC returns credits (TC 841) or the corrected Form 1098, Schedule of Uncollectible Checks arrives.

    2. If the Form 1098 is not received by the next accounting period, follow-up with the RFC. Request that the Form 1098 be forwarded. Document pending items in the case file for any further action. Update IDRS as necessary to reflect any follow-up actions.

    3. Continue monthly monitoring of case files. If credits are not received by the next accounting period, initiate necessary further correspondence with the issuing Regional Financial Center. Document circumstances and place in case file.

    4. Addresses for the respective Regional Financial Center appear in Exhibit 3.17.79-10.

    5. When credits post, close the IDRS control base and destroy the case file. Input the following:

    ACTON
    C#CRFRFMS,C

Incorrect Cancellation Amounts

  1. If a TC 841 or TC 740 amount shown on the Form 1098 tape or listing is input to a taxpayer module and the cancellation amount does not match the amount of the corresponding TC 840/846, the credit will not post to Master File except as noted below. The Refund Inquiry or Unpostables function will advise Accounting Operations when these differences in amounts or money mismatches (MM) occur.

    1. There are two types of offset: Tax Offset and Treasury Offset Program (TOP) Offset (See IRM 21.4.6, Refund Inquiries - Refund Offset, for further information).

    2. A TC 841/740 can be less than the original refund amount if a Treasury Offset (TOP) TC 898 has occurred.

    3. BFS should reverse all offsets with a cancelled refund amount and return the entire amount of the original TC 840/846 to IRS. However, BFS will deduct from the original refund any portion of the offset previously reversed by IRS (a TC 766 with Offset Trace Number, OTN) and/or previously refunded by the agency (a TC 899, type 2 and 3, less TC 899, type 4) with same OTN's as the TC 898(s) offset.

    4. Unpostable Code (UPC) 138 criteria will incorporate the TOP TC 740/841 conditions, for different money amounts. See TOP procedures in IRM 21.4.6.5.24, Returned Refund Check.

    5. Resolution of UPC 138 are no different than previously, except when TC 898 is present. See further references in the TOP IRM 21.4.6, Refund Inquiries - Refund Offset.

    6. If TC 841 on module is due to Identity Theft (IDT), see procedures in 3.17.243.3.5.1, Resolving Cases with TC 841 Posted.

    Note:

    If research indicates a TOP Offset was done, use TC 720 with date of the refund and the blocking of the returned refund (i.e., 55555 use 55x, 66666 use 66x, 77777 use 77x, 88888 use 88x and 99999 use 99x).

  2. Accounting Operations will initiate correspondence to the issuing Regional Financial Center (RFC) to advise them that a cancellation credit has been received for an amount different from the original check amount. The correspondence should request that the RFC immediately issue a TFS Form 3813, Schedule of Uncollectible Checks, to reverse the incorrect amount and to issue a Form 1098 for the correct amount.

  3. Include the following information in the correspondence:

    1. Taxpayer's name

    2. SSN/EIN

    3. Cancellation credit amount as shown on the Form 1098 listing

    4. Correct amount as shown on the taxpayer module

    5. Check symbol

    6. Check number

    7. Form 1098 schedule number

    8. Form 1098 date

  4. To determine the correct amount when a TOP offset has occurred:

    1. Look for TC 898.

    2. Subtract any TC 899 type 2 or 3 and TC 76X from TC 840/846 amounts.

    3. Add any TC 899 type 4.

    4. All of these transactions must have the same Offset Trace Number (OTN) as the accompanying TC 898.

    5. Disregard all signs when adding or subtracting the transaction amounts from the original refund.

    6. See IRM 21.4.6.5.24, Returned Refund Checks.

  5. Route the correspondence to the issuing Regional Financial Center (See Exhibit 3.17.79-10 for list of RFC mailing addresses). Format the address of such correspondence to the Payments and Claims Branch.

  6. Establish a control base on IDRS as follows:
    ACTON
    C#,MMLTRTORFC,M,MISC
    *,*

  7. Monitor the case until the TFS Form 3813 is received from the Regional Financial Center. When received, prepare Form 3245 to input TC 843 or TC 742. Update the control base to show that TFS Form 3813 has been received as follows:
    ACTON
    C#,3813RECD,M,MISC
    *,*

  8. If the correct cancellation credit is received but the FMS Form 3813 is not (or vice versa), immediately contact the appropriate RFC by telephone and request the missing document.

  9. Credits will be journaled to the 4970 Account during research and until FMS Form 3813 is received. After FMS Form 3813 (debit) is received from the RFC, it will cancel the incorrect amount of the Form 1098 held in the 4970 Account.

  10. Monitor for receipt of the reissued/corrected Form 1098. Follow-up with the RFC may be required.

  11. When the correct Form 1098 and/or TC 841 is received and posted, close the control base as follows:
    ACTON
    C#,TC841PSTED,C

Undeliverable Refund Check (Transaction Code (TC) 740, S- Freeze) Cancellations

  1. Refund checks are returned to the Regional Financial Center (RFC) by the U.S. Postal Service when they cannot be delivered. U. S. Postal Service returns the check to the Bureau of the Fiscal Service (BFS) Regional Financial Center (RFC) to be cancelled and the credit returned to the agency who initiated the disbursement. The majority of tax refunds are issued by the Regional Financial Center.

    1. The RFC cancels the undelivered checks and returns credits to IRS Enterprise Computing Center (ECC) - Martinsburg via Form 1098 cancellation credits.

    2. These credits post to Master File as TC 740; set an S- Freeze, and generate a notice to the taxpayer (CP 31 through CP 231) that the tax refund was returned as undeliverable.

  2. At times, the RFC may return credits with the incorrect Reason for Return Code which is interpreted incorrectly when posting to the Master File and may or may not Freeze the account accordingly. If this occurs in error, posting corrections to taxpayer accounts must be handled manually. These procedures refer to other sections of the IRM to process these credits.

Undeliverable Enterprise Computing Center - (ECC-MTB) for Code 02/TC 846) Individual Master File (IMF)/Business Master File (BMF) Refund Check Cancellations

  1. The Regional Financial Centers receive, cancel, and code undeliverable IMF/BMF ECC computer generated (TC 846) refund checks as outlined in IRM 3.17.79.10.1, Treasury Checks Returned to the Submission Processing Center and Regional Financial Center.

  2. The Regional Financial Centers transmit to ECC all computer generated (TC 846) undeliverable refund checks (Reason for Return Code 02) for posting TC 740 with S- Freeze, in the amount of the check to the taxpayer's account (both IMF and BMF) and sorted by Agency Location Code (ALC). This is accomplished through the Form 1098/145/1185 cancellation runs at ECC -MTB. ECC - MTB posts the TC 740 (S Freeze) and forwards taxpayer account data to the Centers for printing Undelivered Refund Check Notices: CP31 for IMF taxpayers; CP231 for BMF taxpayers.

  3. Submission Processing Centers process to RRACS and reclassify as required in IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System.

Undeliverable Integrated Data Retrieval System (IDRS) Generated Refunds

  1. For IMF/BMF checks, follow the processing procedures contained in the applicable sections of this handbook. Consider that, in some instances, e.g., hardship, decedent cases, it may be necessary to perform CC RFUND procedures.

  2. For BMF checks issued, the Regional Financial Center (ROC) produces Form 1098 and a related Form 1098 Listing for the Agency Location Code Submission Processing Center for posting TC 740 to the BMF at MCC.

  3. The Regional Financial Centers produce, Form 1098 and a consolidated listing of all ANMF, Photocopy Fee Refund and IRAF checks; separate file totals for various program areas:

    1. ANMF and photocopy fee refund check cancellations.

    2. IRAF check cancellations.

    3. See IRM 3.17.79.10.4, Processing Returned Automated Non-Master File (ANMF) Checks and IRM 3.17.79.10.5, Returned IRAF Checks for instructions for preparing Form 3245 to post credits to taxpayer accounts.

    4. Forward one copy of the Form 1098 schedule and Form 1098 Listing for Photocopy Fee refunds to the Photocopy Fee function.

    5. Further instructions for processing Photocopy Fee undeliverable refunds are located in IRM 21.4.4.6.2, Photocopy Fee Refunds and IRM 3.5.20.5.1.12.3, Undelivered Refunds and Limited Pay Cancellation.

Unpostable Cases Received from Rejects/Refund Inquiry (Unpostable Code for example (UPC) 138 RC 0 or UPC 290 RC 5) (UPC and RC can vary)

  1. Input Correction Operation, Unpostable or Reject functions may not be able to correct some unposted Transaction codes (TC) 841, 740 or 843. If this occurs the unposted transaction will be closed with a closing code 1 or 8 to the Accounting function for resolution.

  2. There are several conditions that may cause the unpostable or reject condition. One of the following may have occurred:

    • Account merged

    • The refund was moved

    • Invalid date

    • Returned refund posted to taxpayer module as a TC 720

      Note:

      If a TC 720 is posted on the taxpayer module, the TC 720 will need to be moved off the account in order for the TC 841, TC 740 or TC 843 to post. If the TC 720 is on a taxpayer module that contains a TC 971 action code (AC) 134 this is an External Lead case, in the Return Integrity and Compliance Services (RICS). If the unpostable TC 841 is from BFS and Not from an IDT case (DLN blocking series 94X) the TC 720 can be reversed. Contact RICS and request a reversal of the TC 720, due to the unpostable TC 841, TC 740 or TC 843. See IRM 3.17.64.18, External Leads Processing (ELP) Cincinnati and Fresno Accounting Only.

    • Returned refund posted to taxpayer module as a TC 841

      Note:

      If the posted TC 841 on the taxpayer module is due to an IDT case (DLN blocking series 94X) (See IRM 3.17.243.6.1.1, Resolving Cases with TC 841 Posted).

  3. Thorough account research must be performed to resolve these cases. See If and Then chart below.

    If Then And
    Reprocessing the original Use the same DLN Batch documents and forward to Data Processing
    Creating a new document Prepare a Form 4028 to 0–2 the original DLN off Batch documents and forward to Data Processing
    Creating a Dummy Prepare case file Batch documents and forward to Data Processing
    NOTE:
    • Use the same DLN when possible

    • Form 4028, Form 813 and case document are taken to Data Control to process the 4028

    • Batch documents for Data Conversion

    • Use the same blocking series and Julian date of the unpostable

    • If Julian date previously used, go to previous date

    • Forms that we reprocess are Form 3245, Form 3244 or Form 12857

    These are just a few examples on how we process the documents.

    TC 841 with a DLN of XXXXX-XXX-55555-X
    1. a NOREF was input

    2. a TC 898 on the account

    3. or the date is incorrect

    4. If a TC 899 on the account, the TC 841 should be posted

    5. If no TC 841 posted, process as TC 670 with a TC 570 to hold the credit

    6. complete Form 4028

    TC 841 with a DLN of XXXXX-XXX-66666-X
    1. Limited Payability

    2. refund not cashed within 1 year

    3. possibly because the refund has been moved via Form 12857

    4. research IDRS, Form 12857

    5. complete Form 4028

    TC 841 or TC 740 with a DLN of XXXXX-XXX-77777-X
    1. returned by BFS

    2. see work processes above when DLN XXXXX-X XX-66666–X

    TC 841 with a DLN of XXXXX-XXX-99999-X
    1. either a returned refund from the taxpayer or an undelivered refund

    2. see work processes above when DLN XXXXX-X XX-66666–X

    TC 740 and TC 843 are worked as above

    Note:

    How the unpostable is resolved depends on the reason it unposted. Every effort should be made to resolve Unpostable conditions within 4 weeks of receipt.

Treasury's Receivable Accounting and Collection System (known as TRACS)

  1. When Treasury checks are not presented for payment within one year from the date of issue, or when Bureau of the Fiscal Service (BFS) Check Claims activities require that expired credits or debit items be returned to agencies, BFS cancels outstanding checks and returns credits to agencies or sends debit items to the agency's ALC usually via the Form 1081. TRACS is Treasury's automated system to account for, bill and collect for the Bureau of the Fiscal Service, Check Claims and disbursement process.

Background - Competitive Equality Banking Act of 1987, Public Law 100–86

  1. Competitive Equality Banking Act of 1987, Public Law 100-86, requires that negotiation of government checks occurs within one (1) year from check issuance. If checks are not negotiated, BFS must cancel outstanding checks and return credits to the issuing agency.

  2. TRACS is an automated system implemented by BFS to handle all accounting, billing and collection activities associated with the refund check claims process.

  3. There are three types of transactions issued from BFS:

    1. Funds disbursed via GWA/IPAC;

    2. Funds transferred via Form 1081 (to correct an erroneous CARS transmission); and

    3. BFS Check Claims (Form 1184/CHCKL) transactions where the conversion of data from the previous systems to the new TRACS necessitates using a paper Form 1081.

  4. The system automates summary accounting transactions and supporting detail records previously received via Form 1081, Voucher and Schedule of Withdrawals and Credits, and Form 1081 listings.

    1. Transactions (both debits and credits) are transmitted to agencies via the CARS/IPAC and are journaled upon receipt into the RRACS 4970 Account, Unapplied Refund Reversal Account.

    2. TRACS provides CARS summary transactions to Enterprise Computing Center (ECC) for each Agency Location Code (ALC) for posting credits and debits to the Master File.

    3. Prior to 1993, all Form 1081 transactions were processed manually via Form 3245, Refund Cancellation Posting Voucher, from the Form 1081 listings; sent to DIS for input; and were posted to Master File.

    4. TRACS Miscellaneous listings and systemic processing difficulties experienced by either IRS or BFS still require manual processing via the Form 3245.

    5. Although TRACS was intended to eliminate the paper Form 1081, there continue to be a low volume of paper Forms 1081 issued by BFS, Accounts Branch. In many cases, these paper Forms 1081 result from systemic difficulties in returning credits/debits via tape to RECC, or in making corrections to the GWA transmissions. Form 6653, Undisbursed Appropriations, are reported monthly to the Agency Location Codes (RRACS area in Accounting Operations) from BFS, Accounts Branch. As described in IRM 3.17.80.5.8, CC CHKCL DO NOT Issue Settlement Check to Taxpayer, these monthly reports do not contain all credit/debit monthly transactions issued either systemically via GWA or via a paper Form 1081.

TRACS Detail Tapes, Types of Central Accounting Reporting System (CARS)Transmission Credits or Debits
  1. TRACS detail tapes follow CARS transmissions. These details are sent to Enterprise (formerly Martinsburg) Computing Center (ECC) for direct Master File posting to taxpayer accounts. Enterprise Computing Center (ECC) - Martinsburg, transmits data to Submission Processing Centers for printing detail listings of IMF, BMF and Miscellaneous transactions. IMF and BMF transactions post directly to taxpayer accounts. Miscellaneous listings (Non-Master File, IRAF, Photocopy Fee Refunds, etc.) require manual posting actions. Form 3858, Payments Over Cancellation (POC) claims packages, are mailed to the Submission Processing Center Agency Location Code (ordinarily RRACS Accounting Operations area) address appearing on the Form 3858.

    1. Limited Payability Cancellation (LPC) Credits provided monthly generate TC 740 with block and serial number "66666" and set an "S-" Freeze and generate Master File Transcripts LPCANCEL. These transcripts can be destroyed when received per "Note:" in IRM 21.4.2.4.7.2, Refund Inquiries - Refund Trace and Limited Payability, Limited Payability Computer Paragraph (CP) 32/237.

    2. Reclamation (REC) Credits provided monthly generate TC 841 with block and serial "88000" and are the result of a Form 3911 non-receipt claim resulting in the recovery of funds through the banking system on forged checks. In cases where BFS cannot recover funds, no credit will be returned to IRS, even though they authorize settlement with the taxpayer. Procedures for handling this situation are included here.

    3. Unavailable Check Cancellation (UCC) Credits provided daily, when they occur, generate TC 841 with block and serial "88111" and set a P- Freeze. These transactions are credits returned on outstanding checks as a result of a non-receipt claim submitted via paper Form 1184.

    4. Payments over Cancellation (POC) Debits provided daily, when they occur, post to Master File and generate TC 843 with block and serial "55111 " . Accounting employees must monitor cases upon receipt of listings and/or Form 3858 claims packages to ensure no notices are issued to taxpayers by input of TC 470 hold codes. IMF and BMF Master File transcripts "PMTOVERCAN" , generate for the tax module only to which the transaction posts to reverse the accompanying TC 841. Form 3858, Claims Document, FMS Form 1133, Claim Against the United States for the Proceeds of a Government Check, and a photocopy of the check (front and back) are forwarded from BFS Accounts Branch to the respective Agency Location Code (ALC) address. The ALC address appears on the Form 3858 (See 3.17.80.2, Processing Payments over Cancellation (POC)).

  2. ECC sends control file 793-12 detail records of all type transactions weekly (cycle) to Submission Processing Centers. SP Centers produce three (3) copies of these listings and forward to Accounting Operations area for distribution and posting actions.

  3. Maintain a log of all incoming CARS transmissions and TRACS listings for balancing. Include:

    1. Received dates;

    2. Document Reference Numbers (Schedule Numbers);

    3. Type of Transaction;

    4. Dollar amount;

    5. Number of items or cycle;

    6. Date completed and forwarded to RRACS for final journal action.

  4. For control purposes, TRACS listings should be date stamped when received.

  5. If TRACS listings are not received by Accounting within 2 cycles from the CARS billing date or upon receipt of RACR, at Submission Processing Center discretion, contact the Processing and Validation Section (PVS) at ECC. This time frame should be sufficient for BFS, Accounts Branch in Hyattsville, MD to ship TRACS detail tapes to ECC, for ECC to process to Master File, transmit via CA-Dispatch and for Submission Processing Centers to print the listings.

    Note:

    See Exhibit 3.17.79-4 for list of BFS Contacts.

    1. Accounting closely monitors receipt of TRACS listings after receiving CARS transmissions. CA-Dispatch (Job 793-12) is transmitted from ECC each cycle. This data is retained for 30 days from the received date by computer rooms. Immediate follow-up ensures the file is still in retention by either ECC or the SP Center computer room and can be reprinted, if necessary.

    2. Accounting employees must be familiar with internal SP Center routing and distribution of computer room print jobs.

    3. If listings are not received: Contact the Help Desk and ask for the ticket to be assigned to EOPS-ECC-ECPV-PROCESSING VALIDATION. Provide the Job Number (79312), IPAC or CARS billing date, type of cancellation (POC, REC, UCC or LPC), and cycle. Reel numbers from ECC enable PVS to research file receipt and production records or research with ECC by cycle.

    4. ECC can re-transmit router run files provided the request is received within retention period.

    5. If the router run file cannot be located, Production Support will contact ECC for guidance.

  6. TRACS data received by ECC should contain "Z60 xxxxxx" Schedule/CARS billing numbers.

    1. To prevent duplicate posting situations, schedule numbers with sequence Z601 xxxxx received by ECC will not be processed by ECC until the Accounting TRACS Coordinator in the respective Submission Processing Center verifies that the data should be processed.

    2. BFS Accounts Branch will hand write an "R" on the TRACS tape label for recreated data.

    3. BFS has sent some TRACS tapes and paper Form 1081 documents and listings for the identical schedule. Corrected IPAC/CARS items cannot be corrected systematically. These paper Form's 1081 schedule numbers are preceded with "B" , followed by 700xxxxx (B700xxxxx).

    4. Some items were incorrectly entered into the TRACS database causing duplicate TRACS tapes with a paper Form 1081.

  7. Money amount discrepancies between IPAC/CARS transmissions and listings and Form 3858 check copy packages should be communicated to HQ.

  8. If the discrepancy exists between Processing Validation Section (PVS) and SP Center journal actions, Accounting Operations may wish to correspond with ECC. The memorandum should be addressed to:

    Chief, Processing Validation Section
    OS:CIO:EO:EC:OS:W:PV1
    Enterprise Computing Center
    Mail Stop 1230
    250 Murall Drive
    Kearneysville, WV 25430

  9. Provide the TRACS schedule number, the type of cancellation, the money amount and the IPAC/CARS confirmation date. This provides ECC with sufficient information to research for the cycle the file was transmitted.

Processing Reclamation Credits (REC)

  1. When a refund check has been cashed and forgery is involved, Check Claims Group will adjudicate the claim. Once the adjudication process is completed and the funds are recovered from the financial institution, credit is forwarded to IRS' Budget Clearing Account. Monies recovered, as the result of the adjudication process, are called reclamation credits.

  2. When a set of TRACS reclamation credit listings (IMF, BMF and Miscellaneous) is received, record information and verify that:

    1. The schedule number and total money amount of the three listings matches the IPAC transmission.

    2. The Submission Processing Center Agency Location Code (ALC) is correct.

    3. All taxpayer information is provided.

  3. Immediately contact BFS Accounts Branch by phone at (202) 874-7920 and inform them if:

    1. Taxpayer identifying (Payee ID) information is missing or incorrect (SSN, EIN, or name).

    2. Amount of the CARS/IPAC transmission does not equal the total amount of the TRACS listings.

    3. Detail tapes and listings do not follow CARS/IPAC transmission in a timely manner, within the next month's accounting period.

    4. To trace detail records, Schedule Number (Document Reference No.), and money amount from CARS transmission is provided to BFS. BFS will research and provide the transmission date information, item count and other information for tracking the transmission further with Enterprise Computing Center (ECC) - Martinsburg.

    5. Reel numbers (transmission id) enable research in retention areas.

    6. If tracing is unsuccessful, a written memorandum request from the Manager, Accounting Operations to the Financial Management Service for recreated data is required as follows:
      Financial Management Service
      ATTN: Manager, Accounts Branch
      Room 700-E
      3700 East-West Highway
      Hyattsville, MD 30782

    7. The memorandum should state: IRS TRACS tape replacements are needed for the (Site), Submission Processing Center, ALC 2009XXXX. ECC did not receive the tapes. A replacement tape or the hard copy (paper Form 1081), must be sent to process the IPAC Bills, and include the information as follows:

    1. IPAC Bill Number

    2. Date

    3. Type

    4. Count

    5. Item $Amount

    6. Form 3858 Needed (Yes/No)

  4. BFS will:

    1. Provide the missing data.

    2. Reverse the charge and, if appropriate, issue a corrected Form 1081.

    3. Take the necessary actions to correct any differences when the amount shown on the TRACS listing and the CARS/IPAC transmission differ; or

    4. Take other appropriate action.

    Note:

    Corrections to CARS transmission or TRACS listings will be done via paper Form 1081. Such corrections cannot be transmitted via CARS yet.

  5. Occasionally, an amount shown on the TRACS listing may differ from the TC 840/846 amount shown on the taxpayer's account. When this occurs, immediately contact BFS Accounts Branch in writing to inform them of the discrepancy. Attach a copy of the print from the CARS transmission, the TRACS listing and a photocopy of the refund check (or any other documentation available showing the correct check amount) and forward to the address shown above.

    1. Upon completion of BFS' review, corrective action is taken to initiate an Form 1081 for the difference.

    2. If no response is received from BFS within 6 weeks, follow-up in writing.

    3. If follow-up procedures outlined above in IRM 3.17.79.12.1, Background - Competitive Equality Banking Act of 1987, Public Law 100–86 and in IRM 21.4.4, Manual Refunds, are unsuccessful and questions or problems concerning TRACS cannot be resolved between the Submission Processing and BFS, contact the National Office for assistance.

  6. All processing for TRACS listings must be completed within 10 work days from the received date. The TRACS listing from ECC, provides an individual breakdown by taxpayer.

    1. Verify that the sum of the totals on the IMF, BMF and Miscellaneous listings match the total cancellations on the corresponding TRACS listing, and that the total matches the CARS/IPAC amount.

    2. If a discrepancy is found, compare the items on the cancellation listing to the items on the CARS/IPAC bill to identify the source.

    3. When identified, refer to 3.17.79.12.1.1(12).

    4. Only the IMF and BMF portions of the cancellation listing need to be journaled through RRACS (Debit 4970 Account and Credit Master File) using a Document Transmittal.

  7. Prepare appropriate Document Transmittal (Debit 4970 Account and Credit Master File). Attach a copy of the TRACS listing, a photocopy of the CARS/IPAC transmission and route to the Redesigned Revenue Accounting Control System (RRACS) function for journal action.

  8. Hold all other documents until the RRACS function returns the Document Transmittal with the journal number, then:

    1. Route a copy of the TRACS listing to the Refund Inquiry function.

    2. Maintain a copy of the TRACS listing in Accounting.

Processing Unavailable Check Cancellation Credits (UCC)

  1. When a tax refund non-receipt claim is submitted by a taxpayer and the claim is forwarded to BFS via paper Form 1184, Non-Receipt Claim, Check Claims determines the refund check is outstanding (never been cashed), and a UCC credit is forwarded to IRS's Budget Clearing Account via CARS.

  2. When a UCC TRACS listing is received, record information and verify that:

    1. The schedule number and total money amount matches the CARS/IPAC transmission.

    2. The Agency Location Code (ALC) is correct.

    3. All taxpayer information is provided.

  3. Immediately contact BFS Accounts Branch by phone at (202) 874-7920 and inform them of any discrepancies as described in IRM 3.17.79.12.2, Processing Reclamation Credits (REC).

  4. All processing for TRACS listings must be completed within 10 work days from the received date. The TRACS listing, produced from a magnetic tape received by ECC, provides an individual breakdown by taxpayer.

    1. Verify that the sum of the totals on the IMF, BMF and Miscellaneous listings match the total cancellations on the corresponding TRACS listing, and that the total matches the CARS amount.

    2. If a discrepancy is found, compare the items on the cancellation listing to the items on the CARS bill to identify the source.

    3. When identified, refer to 3.17.79.12.1.1(12).

    4. Only the IMF and BMF portions of the cancellation listing need to be journaled through RRACS (Debit 4970 Account and Credit Master File) using a Document Transmittal.

  5. Prepare appropriate Document Transmittal (to Debit 4970 Account and Credit Master File). Attach a copy of the TRACS listing, a photocopy of the CARS/IPAC transmission and route to the Redesigned Revenue Accounting Control System (RRACS) function for journal action.

  6. Hold all other documents until the RRACS function returns the Document Transmittal with the journal number, then:

    1. Route a copy of the TRACS listing to the Refund Inquiry function.

    2. Maintain a copy of the TRACS listing in Accounting.

Processing Limited Payability Cancellations (LPC)

  1. Under the provisions of the Competitive Equality Banking Act of 1987 (Limited Payability or LP), U.S. Treasury checks must be negotiated (cashed) within 1 year of the check issue date or before October 1, 1990. After expiration of the 1 year period, any checks outstanding (not cashed) will be canceled by Bureau of the Fiscal Service (BFS). More detailed instructions about Limited Payability are located in IRM 21.4.4, Manual Refunds.

    1. For checks issued October 1, 1989 and subsequent, LPC cancellations will take place once monthly. Outstanding checks will be canceled in the Check Processing and Reconciliation (CP&R) System 14 months after the month of issuance. BFS will return credits for these checks to IRS 15 months after the month of issuance.

    2. Credits will be returned via CARAS/IPAC and journaled into the 4970 Account upon receipt. Supporting detail information will be supplied from BFS Financial Information, Accounts Branch in Hyattsville, Maryland, and transmitted directly to ECC. This processing is part of the Treasury Receivable Accounting and Collection System (TRACS).

    3. Limited Payability Cancellation (LPC) Credits provided monthly will generate TC 740 with block and serial number "66666" . IMF and BMF generated credits between ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will be immediately released. Those less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will set an "S-" Freeze.

    4. Each LP cancellation tape will produce an IMF tape with detail listing, a BMF tape with detail listing and a Miscellaneous (NMF, Photocopy Fee, etc.) listing of items that cannot be posted to the Master File. It is possible for an ALC address to receive up to three listings for Limited Payability Cancellations.

  2. LP cancellation listings are processed within 10 working days of receipt as follows:

    1. Verify that the sum of the totals on the IMF, BMF and Miscellaneous listings match the total for LP cancellations on the corresponding TRACS listing, and that the total matches the CARS amount.

    2. If a discrepancy is found, compare the items on the LP cancellation listing to the items on the CARS bill to identify the source.

    3. When identified, refer to IRM 3.17.79.12.1, Background - Limited Payability Legislation, Public Law 100-86.

    4. Only the IMF and BMF portions of the LP cancellation listing need to be journaled through RRACS (Debit 4970 Account and Credit Master File) using a Document Transmittal (Follow instructions in IRM 3.17.79.12.4.1(4)(d) and (e)).

Miscellaneous Treasury Receivable, Accounting, and Collection System (TRACS) Listing
  1. The Miscellaneous listing is processed manually.

  2. Most entries on the Miscellaneous listing are for Photocopy Fee Refunds. The check issuance date will determine whether the Refund Voucher and Schedule of Payments Number, ending with "PC" , indicating a Photocopy Fee Refund, is still in files. Performing this research will prevent duplicate refunds. At Center option and if documentation is available:

    1. Pull the Secure Payment System (SPS) print or Form 1166, Voucher and Schedule of Payments, from the Manual Refund file for each Photocopy Fee entry on the listing.

    2. Stamp cancellation on the Form 1166 OCR, and at the side of each corresponding entry attached to the Form 1166.

    3. Note on the Miscellaneous listing "6310" for each item.

    4. Follow instructions in (d) and (e), below, to journal through RRACS (Debit 4970 Account and Credit 6310 Account) using a Document Transmittal.

  3. Other entries on the Miscellaneous listing will be IMF, BMF, ANMF, IRAF or General Ledger credits.

    1. At Center option for maintaining and researching the use of the items credited from the 6565 Account, pull the SPS print or Form 1166 OCR, Voucher and Schedule of Payments, with accompanying refund document forms (Form 5792, Form 3753, Refund Voucher Listing, etc.).

    2. Stamp cancellation on the SPS print or Form 1166 and on the accompanying refund document.

    3. Photocopy each schedule and document "Canceled" and attach to the Miscellaneous listing maintained in Accounting. Refile original documents.

    4. Research as necessary, IDRS, MFTRA, INOLE, ANMF, etc.

    5. Control on IDRS and include a history item showing the TRACS Schedule Number, as follows:
      ACTON
      C#,LPLISTING,M,MISC
      *,(TRACS Received Date)
      ACTON
      H,ZXXXXXXXX
      ACTON
      C#,LP/740,C

    6. After research is completed, close the control base.

    7. Photocopy and attach documents to the Miscellaneous listing maintained in Accounting. Verify amounts for balancing.

    8. Note the MFT and Tax Period or General Ledger Account on the LP listing for each credit, and whether a Form 3245 was prepared.

    9. Journal through RRACS (Debit 4970 Account and Credit IMF, BMF, ANMF, or IRAF), whichever account applies, using a Document Transmittal.

  4. Some entries on the Miscellaneous listing may be from a General Ledger Account, such as 6800, 4620, 9999, etc.

    1. Pull the SPS Print or Form 1166, from the Manual Refund File, with accompanying Refund Voucher List.

    2. Stamp "Cancellation" on the Form 1166, and on the Refund Voucher List.

    3. Photocopy each document canceled and attach it to the Miscellaneous listing maintained in Accounting. Refile original documents.

    4. Notate the General Ledger Account 6800 for each credit on the LP Listing.

    5. Journal through RRACS (e.g., Debit 4970 Account and Credit 6800 Account) using a Document Transmittal. Follow instructions in (d) and (e), below. Because credits are over 1 year old, all entries from the General Ledger Accounts are journaled to 6800 Account only.

  5. Prepare Document Transmittal. Attach a copy of the IMF, BMF and Miscellaneous listings and the second copy of any Form 813 to the Document Transmittal and route to the RRACS function for journal action.

  6. Hold all other documents until the RRACS function returns the Document Transmittal with the journal number. Then:

    1. Route any original Form 813 and Form 3245 to Batching and Numbering for processing.

    2. Route a copy of all listings to Refund Inquiry.

    3. Route a copy of any listings containing Photocopy Fee Refund cancellations to the Photocopy Fee function.

    4. Maintain a copy of all LP listings with any back-up attached in Accounting Operations.

Maintaining Account 6565 and Monthly Balancing Routine

  1. Checks expired under the provisions of Limited Payability, either issued prior to October 1, 1989, returned by taxpayers or cashed due to forgery, are worked through Account 6565 originating in the Refund Inquiry area to maintain internal controls.

  2. Research and preparation of Form 3809, Miscellaneous Adjustment Voucher, for 6565 Account cases is performed in the Refund Inquiry function. See related instructions in IRM 21.4.2.4.11, Check Cashed/Limited Payability (Possible Forgery) and IRM 21.4.2.4.14, Account 6565 Processing for Refund Inquiry Function.

  3. Refund Inquiry forwards the entire case file to Accounting, or a photocopy of the case file, along with Form 3809 for processing. The following must be included with the case file:

    1. A MFTRA or TFTRA transcript (or IDRS print) of the refund tax module.

    2. A photocopy of the expired check, and/or information supporting a statement that the check was returned to the RFC.

    3. Any taxpayer correspondence.

    4. Form 3859, Claims Disposition Notice (CDN) or evidence that a non-receipt claim was initiated and the current status of the check.

  4. Accounting will verify that:

    1. All information for the case is attached.

    2. Form 3809 is attached (See Exhibit 3.17.79-8, Blocking Series Chart for Document Code 45, Form 1098 and TRACS Processing).

    3. Use of Account 6565 category code is recorded on Form 3809.

    4. A cover sheet is attached to the case (if appropriate) and,

    5. The Accounting Control/Services Chief signed the cover sheet, as appropriate.

    6. See paragraph (5), Check List, below, for Posting TC 841/740.

  5. Maintain a log of all reviewed cases, including but not limited to:

    1. The Taxpayer Identification Number.

    2. The Dollar Amount.

    3. The MFT and Tax Period involved.

    4. General reason why the taxpayer is requesting a new refund check.

    5. Take precautions that duplicate cases are not processed. Refund checks issued October 1, 1989 or after (excluding forgeries) are not processed through the 6565 Account. Outstanding refund checks, issued October 1, 1989, or later, that are over 1 year old, are canceled via Limited Payability (TRACS).

    6. Maintain money amounts of the case files with Form 3809 for balancing the 6565 Account.

    7. Number Form 3809 as instructed in Exhibit 3.17.79-8, using Document Code 48 and Blocking Series 899.

    8. Prepare Form 813, Document Register, listing all Form 3809 having the same MFT.

    9. Prepare Document Transmittal (Debit 6565 Account and Credit Master File). Attach second copy of Form 813 and Part 2-Debit copy, of Form 3809 requesting that journal number be stamped on each Form 3809.

    10. Route to RRACS function for journal action.

    11. Hold all other documents until the RRACS function returns the Document Transmittal and Part 2-Debit Copy of Form 3809 with the journal number.

    12. Route original Form 813 and Part 1-Credit Copy of Form 3809 to Batching and Numbering for processing.

    13. Attach Part 2-Debit Copy of Form 3809 to each corresponding case file and maintain case files in Accounting.

    14. The 6565 Account is balanced monthly. Balancing actions and other review activities are required as with other general ledger accounts. Current month inventory should be filed separately until balancing is complete; then it is appropriate to maintain the account separately by month or merge it into a general "closed" file for the Fiscal Year.

  6. Check List for posting TC 841/740. The Refund Inquiry function will take the following steps to post TC 841 or TC 740 to the taxpayer's account when the appropriate credit is not posted through normal MF processing (LP TRACS). The Refund Inquiry function researches and prepares Form 3809.

    1. This information is necessary for Accounting to accurately verify that each case is complete. Refund Inquiry will annotate the 6565 Account category of the debit in the upper left corner of Form 3809.

    2. For Categories 2, 3 and 4, a cover sheet must be attached at the front of the case file showing all appropriate attempts to locate the credit were not successful and appropriate managerial level supports the release through 6565 Account.

    3. Category 3 cases require the Accounting Operations Chief's signature.

  7. Category 1: Limited Payability credits (no credit due from BFS). Most 6565 Account cases fit into this category.

  8. Category 2: BFS states the credit has been returned to IRS. After a thorough search and follow-up with BFS, IRS is unable to find any record of the credit. This credit may be sent through the RFC or directly from Hyattsville as the result of a check claim. See IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System. Credit is applied from Account 6565 to the taxpayer's account using Form 3809.

    1. BFS Regional Operating Center: Form 1098 Refund Stops or Intercepts, undeliverables, returned checks (Available Check Cancellations). Regional Financial Center (RFC) will show Reason for Cancellation Code (RCC) (Contact telephone numbers are in Exhibit 3.17.79-10).

    2. BFS: Form 1081 Reclamation credits, Status 32 credits for paper-filed Form 1184 claims. Contact the person whose name appears on the Form 3859 or Form 1081.

  9. Category 3: BFS authorizes settlement via 3859 and seeks reclamation timely, but no credit is returned to IRS within 1 year. After appropriate contacts with BFS, credit the taxpayer's account. Credit will be applied from Account 6565 to the taxpayer's account using Form 3809. The Accounting Operations Chief's signature is required on the check sheet. If credit is subsequently received from Hyattsville, credit the 6565 Account for the amount previously debited to satisfy the taxpayer.

  10. Category 4: BFS authorizes settlement and reclaims from the bank, however, the bank recovers only partial credit. BFS, therefore, is able to return only partial credit to IRS. Since a partial credit cannot post, the taxpayer's account remains in debit balance for the entire amount. After appropriate follow-up with BFS, use Form 3809 to debit Account 6565 and credit Account 4970 for the difference. Prepare Form 3245 to post the entire refund amount from Account 4970 to the taxpayer's account.

  11. No Category Number: The amount of credit from BFS is less than the refund amount (understated), and the amount is under ≡ ≡ ≡ . Follow-up with BFS indicates no correction will be made. Post reversal of the entire refund to the taxpayer's account. Annotate the Form 3245 with the amount from Account 6540 (Debit Account 6540) and the amount from Account 4970.

  12. No Category Number: BFS returned the credit, but the amount of credit is more than the refund amount (overstated), and the discrepancy is under ≡ ≡ ≡ ≡ ≡ . Follow-up with BFS indicates no correction will be made. Annotate the Form 3245 with the amount to post the credit to the taxpayer's account. The excess amount will be applied to Account 6540.

Processing Credits, Standard Form (Form) 1081

  1. At times, systemic difficulties prevent the return of credits via TRACS and a refund check is outstanding or corrections to CARS/IPAC transmissions are necessary. In these situations, credit is returned to IRS Budget Clearing Account via Form 1081, or Form 1081 EDP Voucher and Schedule of Withdrawals and Credits. The Form 1081 is accompanied by a Form 1081 listing which provides individual items by taxpayer identification numbers. Refund Inquiry, if appropriate, initiates a recertified check to the taxpayer in cases where the refund is not automatically issued from Master File (TC 846).

  2. Accounting logs incoming Forms 1081. Record data in the log:

    1. Form 1081 number;

    2. Dollar ($) amount;

    3. Type of charge (debit or credit);

    4. Item count; and

    5. Received date.

  3. Verify that:

    1. The Agency Location Code (ALC) is accurate and the charge is intended for that Submission Processing Center;

    2. All taxpayer information is provided; and

    3. All items are for tax refunds.

  4. If discrepancies are identified, contact BFS Accounts Branch at (202) 874-7920. Explain the discrepancy:

    1. ALC is incorrect;

    2. Account cannot be identified;

    3. Charge belongs to another ALC;

    4. Charges are not for tax refunds; or

    5. Taxpayer identifying information (SSN/EIN/Name) is missing or incorrect.

  5. BFS will either:

    1. Provide the missing data;

    2. Reverse the charge via Form 1081 and, if appropriate, issue a corrected Form 1081; or

    3. Take other appropriate action.

  6. In situations as described in IRM 3.17.79.12.6 (3) or (4), above, do not prepare a Form 1081 to reverse charges back to BFS without first obtaining prior approval from BFS.

  7. Occasionally, an amount shown on the Form 1081 may differ from the TC 840/846 amount shown on the taxpayer's account.

    1. Treasury Offset Program (TOP) refund offsets will occur if taxpayers have an agency debt. See IRM 21.4.6Refund Inquiries - Refund Offset.

    2. This offset is indicated by TC 898 on the taxpayer's account.

    3. If no TC 898 and money amounts still differ, immediately contact BFS Accounts Branch by phone and in writing.

    4. Attach a copy of the Form 1081 listing and any other documentation available showing the correct refund amount.

  8. Forward to:

    Bureau of the Fiscal Service
    Manager, Accounts Branch
    Room 700
    3700 East-West Highway
    Hyattsville, Maryland 20782

    1. When review is completed by BFS, action will be taken to initiate a Form 1081 for the difference.

    2. If no response is received from BFS within 6 weeks, follow-up in writing. See IRM 3.17.79.12.2, Processing Reclamation Credits (REC), for example of written request to BFS, Accounts Branch.

    3. If follow-up procedures outlined above and in IRM 21.4.4, Manual Refunds, are unsuccessful, and questions or problems concerning changes on the Form 1081 cannot be resolved between the SP Center and BFS, contact the National Office Project 744 analyst. Previous correspondence and documentation between the Center and BFS may be requested by National Office.

Corrected or Paper Standard Form Form 1081
  1. BFS, Accounts Branch, explains that receipt of paper Form 1081 is considered TRACS exception-processing; the items cannot be transferred from Check Processing and Reconciliation (CP&R) to TRACS automatically. Also, paper Form 1081 result when BFS issues data or item corrections to previous CARS transmissions. Corrections cannot currently be transmitted via CARS.

  2. Corrected Form 1081 can be identified by Schedule numbers "B700xxxxxx." These items will also contain sufficient information to describe the initial schedule transmission being reversed or corrected.

  3. BFS, Accounts Branch, attempts to maintain accurate end-of-month records of paper Form 1081 issued, and provides each ALC with a listing of paper Form 1081 for the prior accounting period. If centers do not receive this document to verify transmittals by the 15th of the month following the accounting period, contact the BFS, Accounts Branch.

  4. Within 10 workdays of receipt of the Form 1081, using the Form 1081 listing as the basis, prepare a Form 3245, Posting Voucher-Refund Cancellation or Repayment (See Exhibit 3.17.79-8 for Blocking Series), for each taxpayer, to input a TC 841 to the tax module for the amount of the credit.

    1. When the TC 841 posts to the tax module, a "P" Freeze generates. The P Freeze indicates that a refund check has been canceled and redeposited.

    2. Review the return before releasing the P- Freeze and reissuing the refund. See IRM 21.4.4, Manual Refunds for resolution of the P- Freeze.

  5. Not all information required for preparing the Form 3245 can be found on the Form 1081. Research IDRS/IMFOL for the ULC/Office code and Schedule date. IMFOL should be used instead of requesting MFTRA whenever possible.

  6. Control on IDRS. Include a history item showing the Form 1081 number. Include a history item showing the money amount if more than one TC 846 has posted to the account.

    ACTON ACTON
    C#, 1081/841,M,MISC H#, (Form 1081 Number)
    *, (Form 1081 Received Date)  
    ACTON
    H#, ($ Amount)
  7. After research is complete and Form 3245 is prepared, close the IDRS control base.

    ACTON
    C#, 3245PREP, C
  8. Verify amounts of Form 3245 with the Form 1081 for balancing. Maintain a log of all Form 3245 by DLN and date.

  9. Photocopy (1 copy) of all Form 3245 and the Form 1081 listing. Make 2 photocopies of the Form 1081 schedule.

  10. Prepare Form 813, Document Register, listing all Form 3245 having the same Office and tax class codes. Verify amounts for balancing.

  11. Prepare Document Transmittal (Credit Master File). Attach the original Form 1081 schedule, the second copy of Form 813, and a tape verifying the amounts to the Document Transmittal and route to the Redesigned Revenue Accounting Control System (RRACS) function for journal action.

  12. Hold all other documents until the RRACS function returns the Document Transmittal with the recorded journal number, then:

    1. Route the original Form 813 and Form 3245 to Batching and Numbering.

    2. Route a photocopy of the Form 1081 schedule and listing to the Refund Inquiry function. Make a note on the copy that a TC 841 will be posted to the tax module to reverse the TC 840/846.

    3. Maintain a photocopy of the Form 1081 schedule, the original Form 1081 listing, and a photocopy of all Form 3245 in Accounting.

Glossary of Terms, Abbreviations and Commonly Used Forms in Accounting

Terms/Abbreviations Definition
23C Date Assessment Date; Notice Date
1510 Account Other Receivables Formerly Used For Erroneous Refunds
1530 Account Erroneous Refund Court Cases
1540 Account Erroneous Refund Non-Court Cases
1535 Account Questionable Refund Program/Return Preparer Program Restitution
4910 Account Erroneous Refund Pending Write-Off Approval
4970 Account Unapplied Refund Reversal
4620 Account Unidentified Remittance
6565 Account Limited Payability
6800 Account Excess Collection
6920 Account Erroneous Refund Approved Write-Off
A
ACC Available Check Cancellation
ACH Automated Clearing House - type of EFT System
ACI Assistant Commissioner International
ACTON IDRS Case Control and History Request
ALC Agency Location Code
AMS Account Management Services
ANMF Automated Non-Master File
ASED Assessment Statute Expiration Date
ATAO Application for Tax Assistance Order
ARFC Austin Regional Finance Center
B
BBTS Batch Block Tracking System
BFS Bureau of Fiscal Service
BMF Business Master File
BMFOL Business Master File On-Line Research
BOB Block Out of Balance
BPD Bureau of Public Debt
C
CADE Customer Account Data Engine
CAF Centralized Authorization File
CARS Central Accounting Reporting System
CCG Check Claims Group
CDN Claim Disposition Notice (BFS)
CFINK Centralized Authorization File Inquiry
CFO Chief Financial Officer
CFOL Corporation Files On-Line System
CHKCL Non-Receipt Claim Check Claim Request
COMPA Compute Interest or Estimated Tax Penalty Request
CP&R Check Processing and Reconciliation System (BFS)
CSCO Compliance Services Collection Operations (formerly Service Center Collection Branch (SCCB))
CSED Collection Statute Expiration Date
D
DCC Detroit Computing Center
DDES Direct Data Entry System
DIS Distributed Input System
DLN Document Locator Number
DMF Debtor Master File
DOJ Department of Justice
DPC Designated Payment Code
DQ Deleted in Quality Review
E
ECC Enterprise Computing Center
EITC Earned Income Tax Credit
EIN Employer Identification Number
EFT Electronic Funds Transfer
EFTPS Electronic Federal Tax Payment System
ELF Electronic Filing System
EONS Electronic Online-Output Network System
EQ Embedded Quality
ERRF Erroneous Refund
ERS Error Resolution System
ERSED Erroneous Refund Statute Expiration Date
ESTAB Document Request
F
FEDLINE Transmits funds through FEDWIRE
FEDWIRE A type of EFT service using Federal Reserve Communication System (FRCS)
FIDO Filing District Code
FLC File Location Code
FPD Financial Processing Division (formerly Adjudication Division)
FRCS Federal Reserve Communication System
FTD Federal Tax Deposit
G
GAO Government Accountability Office
GMF Generalized Mainline Framework
GSA General Services Administration
GUF Generalized Unpostable Framework
GWA Government Wide Accounting
H
HAL Holds Automated Listing (BFS)
I
ICS/ACS Integrated Collection System/ Automated Collection System
IDRS Integrated Data Retrieval System
IGR IDRS Generated Refund
IMF Individual Master File
IMFOL Individual Master File On Line research
IMF IRAF Individual Master File Accounts (MFT 29)
INOLE National Account Profile Entity Research
INTST Interest / FTP penalty Accrual Computation Research
IPAC Intra-Governmental Payment and Collection System
IRAF Individual Retirement Account File (effective January 2005, IRAF merged into IMF).
ISRP Integrated Submission and Remittance Processing
L
LDTR Large Dollar Trend Report
LETER Letter Request
LP Limited Payability
LPC Limited Payability Cancellation
M
MCR Master Control Record
MFT Master File Tax (Codes)
MFTRA Master File Transcript Request
MFTRA (G) Master File Transcript Request (Debtor Master File)
MFTRA (U) Master File Transcript Request (Numident-SSN)
MFTRA (X) Master File Transcript Request (Taxpayer Literal Copy)
N
NAMEE (BMF) Employer Identification Number (EIN) Research
NAMES (IMF) Social Security Number (SSN) Research
NLUN Nullified Unpostable Category Code
NMF Non-Master File
NOREF (BMF only) Refund Intercept Request
NTRR Net Tax Refund Report
O
OBL Outstanding Balance List
OBR Offset Bypass Refund
OIC Offer in Compromise
P
PACER Payment and Claims Enhanced Reconciliation
POA Power of Attorney
POC Payment Over Cancellation
PRINT Printer Replacement to Integrate New Tools
R
RAC Refund Anticipation Check - A RAC is the non-loan product that many commercial tax preparers and their financial institution partners offer in addition to RAL(s). RAC(s), the financial institution opens a temporary bank account into which the IRS direct deposits the refund check. In lieu of issuing a RAL to the taxpayer, the financial institution waits until the IRS direct deposits the taxpayer(s) refund into the temporary bank account. The financial institution , via the preparer, then issues the taxpayer a paper check from the tax preparer.
RAL Refund Anticipation Loan - A RAL is money borrowed by a taxpayer from a financial institution based on the taxpayer(s) anticipated income tax refund. The loan is made pursuant to a written agreement between the taxpayer and the financial institution.
RRACS Redesigned Revenue Accounting Control System
RCTF Recertification Category Code
RDD Return Due Date
REC Reclamation Credits
REFAP(R) Refund Approval IDRS Request
REINF IDRS Refund Information File Research
REQ54/ADJ54 IDRS DP Adjustment Request
REQ77/FRM77 Miscellaneous Transaction Adjustment Request
RFC Regional Financial Center
RFCK Photocopy Request of Refund Check
RFIF Refund Information File
RFIQ Refund Inquiry IDRS Category Code
RFUND(R) IDRS Generated Refund Request
RSED Refund Statute Expiration Date
RSN Refund Schedule Number
RTN Routing and Transit Number
RTVUE Return Transaction On-Line Inquiry
S
SACS Security and Communications System
SCCF Service Center Control File
SCRIPS Service Center Recognition Input System
SFR Substitute for Return
SITLP State Income Tax Levy Program
SPC Submission Processing Center
SPS Secure Payment System (BFS)
SSN Social Security Number
STAUP Status Notice Update Request
SUMRY Tax Account Research
T
TAS Taxpayer Advocate Service
TAU Telephone Answering Unit, BFS
TC Transaction Code
TDA Taxpayer Delinquent Account
TEP Tape Edit Processor
TERUP Transaction Deletion Request
TIA Tax Information Authorization
TIN Taxpayer Identification Number (or SSN/EIN)
TOP Treasury Offset Program
TPRQ Taxpayer Request Category Code
TRACS Treasury Receivable Accounting and Collection System
TRDBV Tax Return Data Base, Retrieves Original Tax Return Information
TRIS Telephone Routing Interactive System
TRPRT Request Prints of Original Filed Returns
TXMOD Tax Module Research
U
UCC Unavailable Check Cancellation
UPCAS Unpostable Case Request
UPCAS(Z) Unpostable Case Request
UPTIN Unpostable Case Request
URF Unidentified Remittance File, Account 4620
URINQ Unidentified Remittance Inquiry
X
XSF Excess Collection File, Account 6800
FORM TITLE-DESCRIPTION
TFS 145 Part of Form 1098 Listing (Direct Deposit)
Form 210 Signature for Certifying Officer
Form 224 Statement of Transactions
Form 514B Tax Transfer Schedule
Form 813 Document Register
Form 843 Claim for Refund and Request for Abatement
Form 911 Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order)
Form 1040N U.S. Non-resident Alien Income Tax Return
Form 1042S Income Subject to Withholding Under Chapter 3
TFS 1044 Form from Treasury (Pre-Recertification)
Form 1081 Voucher and Schedule of Withdrawals and Credits
Form 1096 Annual Summary and Transmittal of U.S. Information Returns
Form 1098 Schedule of Canceled or Undelivered Checks
Form 1099C Cancellation of Debt
Form 1099G Certain Government Payments (currently 1099C)
Form 1099INT Interest Income
Form 1120F U.S. Income Tax Return of Foreign Corporation
Form 1120S U.S. Income Tax Return for an S Corporation
Form 1128 Application to Adopt, Change, or Retain a Tax Year
TFS 1133 Claim against the United States for the Proceeds of a Government Check
TFS 1133R Release of Claim Against the U.S. for Proceeds of a Government Check
Form 1166OCR Voucher and Schedule of Payments
Form 1167OCR Continuation Sheet
Form 1184 Unavailable Check Cancellation
TFS 1185 Schedule of Unavailable Check Cancellation Credits
Form 1310 Statement of Claimant to Refund Due Deceased Taxpayer
Form 1331B Notice of Adjustment
Form 1664X Photocopy of Checks (obsolete form, but occasionally used)
PD 1782 Application for Redemption at Par of U.S. Treasury Bonds Eligible for Payments of Federal Estate Tax
Form 2159 Payroll Deduction Agreement
Form 2188 Voucher and Schedule of Overpayment and Overassessments
Form 2209 Courtesy Investigation
Form 2209A Status Report
Form 2287(C) Notice of Check Not Accepted by Bank
Form 2424 Account Adjustment Voucher
Form 2547 Block Slip
Form 2848 Power of Attorney and Declaration of Representative
FMS Form 2958 Delegation of Authority
Form 3210 Document Transmittal
Form 3244 Payment Posting Voucher
Form 3244A Payment Posting Voucher (Exam)
Form 3245 Posting Voucher Refund Cancellation or Repayment
Form 3460 Transmittal Memo – Accounting Control Document
Form 3465 Adjustment Request
Form 3696 Correspondence Action Sheet
Form 3753 Manual Refund Posting Voucher
Form 3809 Miscellaneous Adjustment Voucher
FMS 3813 Schedule of Uncollectible Checks
TFS 3858 1133 Claims Package, BFS
TFS 3859 Claims Disposition Notice (CDN)
TFS 3864 Agency Recertification Follow-up
Form 3893 Re-Entry Document Control
Form 3911 Taxpayer Statement Regarding Refund
Form 3913 Acknowledgment of Returned Refund Check
Form 4338 Information of Certified Transcript Request
Form 4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax
Form 4506(T) Request for Transcript of Tax
Form 4728/4728A Notice to Taxpayer of Incorrect Refund Issued
Form 4804 Transmittal of Information Returns Reported Magnetically/ Electronically
Form 4878 Voucher and Schedule of Payments
Form 5205 Information About Your Income Tax Refund
Form 5344 Examination Closing Record
Form 5461A Tax Refund Offset Program Report of Actions Under Public Laws 97-35, 98-369, 98-378, and 101-508
Form 5498 IRA Contribution Information
Form 5515 Debit Voucher – Debit Adjustments from Depository bank
Form 5792 Request for IDRS Generated Refund
TFS 6652 Statement of Difference
Form 7004 Application for Automatic Extension of Time to File Corporation Income Tax Return
Form 7831 Schedule of Accounts Written Off
Form 8050 Direct Deposit of Corporate Tax Refund
Form 8166 Input Reconciliation Sheet
Form 8288 / 8288-A Foreign Investment Real Property Tax Act
Form 8302 Direct Deposit of Tax Refund of $1 Million or More
Form 8758 Excess Collection File Addition
Form 8821 Tax Information Authorization

Blocking Series Chart for Document Code "45" Form 3753, Manual Refund Posting Voucher

AO/SC CODE BLOCKING SERIES DESCRIPTION DOC CODE TC CODE PROCESSED BY
ULC 200–299 IMF/BMF REFUNDS/FORM 3753 840 Accounting
ULC 300–399 BMF (F4466 ONLY) REFUNDS/FORM 3753 840 Accounting
ULC 900 -0- AMOUNT FORM 3753 DUMMY REFUNDS TO RELEASE X- FREEZE 840 Accounting
ULC 920 IMF/BMF/NMF FORM 3753 USED WHEN TRANSFERRING REFUNDS TO PROPER ACCOUNT AND IN CONJUNCTION WITH FORM 3809 (*Optional Form 12857, top portion) 840 Accounting
ULC 600 MANUAL REFUND/DIRECT DEPOSIT IRS ERROR 840 Accounting
  • Optional Form 12857, Refund Transfer, may arrive in Accounting to transfer accounts only. These items do not create a refund condition. Forms 12857, top portion only, are numbered Doc Code 45 and separated from the bottom portion prior to sending to RRACS area via Form 813.

    Note:

    If posting document requires DLN for Doc Code 45, Blocking Series 92X, aka 'dummy refunds', enter "0" (zero) in Block 4 on Form 3753 (Schedule Number) or Form 12857 (Refund Schedule Number).

BFS Treasury Support Center and IRS Contact List

BFS TRACS ISSUE CONTACT NUMBER
MISSING 1081s (COPIES/DETAIL LISTINGS) (877) 440-9476
REVERSALS (1081/IPAC) (877) 440-9476
DUPLICATE ENTRIES (1081/IPAC BILLS) (877) 440-9476
TAPES (MISSING/BLANK/WRONG ALC) (877) 440-9476
TAPES (DUPLICATE/OUT-OF-BALANCE) (877) 440-9476
CHARGEBACKS (MISSING 3858s/CHECK COPY) (877) 440-9476
IRS HELP DESK (866) 743-5748
ITEMS NOT BELONGING TO ALC (877) 440-9476
ITEMS NOT CHARGED (877) 440-9476
SF-224 REPORTING (877) 440-9476
ACCESSING GOAL/IPAC (877) 440-9476
CREDITS (MISSING LPC/UCC/REC) (877) 440-9476
MICROFICHE (MISSING IPAC DETAIL LISTING) (877) 440-9476
CUSTOMER LIAISON (877) 440-9476
CHECK INFORMATION SECTION (877) 440-9476
MISSING SCHEDULES (1098) OPEN AN KISAM TICKET (HELP DESK)

Refund Schedule Number Format

Manual Refund Schedule Number "YYYYJJJSCTAAAA"
Field Field Name Values
YYYY Year Current year e.g., 20XX
JJJ Julian Date 001-365 (366 Leap year)
SC Submission Processing Center
AUSPC 18
CSPC 17
FSPC 89
KCSPC 09
OSPC 29
T File Type
0 = BMF
1 = IMF
3 = CADE
4 = IRAF
5 = Other
6 = ANMF
AAAA Alpha Definitions See Below

Note:

If sequence for batches becomes necessary, use the available alpha such as:

  • YYYYJJJSCTD- Anti drug (1st)

  • YYYYJJJSCTBD- Anti drug (2nd)

  • YYYYJJJSCTED- Anti drug (3rd)

  • YYYYJJJSCTHD- Anti drug (4th)


A - Arbitrage (8038T)
B - RESERVED
C - Photocopy Fee (single item)
D - Anti-Drug-No longer used
E - RESERVED
F - Direct Deposit/ACH
G - General Ledger Account
H - RESERVED
I - International (AUSPC, OSPC (PSC), CSPC))
J -Dept. of Justice
K -Over $10 Million
L - Lock Box Reimbursement Theft
M - IMF/BMF/IMF IRAF/8038CP
N - Non-Master File (ANMF)
O - Offer-in-Compromise
P - Photocopy fee weekly application refund report
Q - Over $1 Million Refund
R - Informant Rewards
S - Seizure
T - Territorial (NMI, VI, GUAM, Samoa)
U - Unidentified
V - Wire Transfer
W - IDRS Generated
X - Excess Collections
Y - User Fees - No longer used
YO - AOIC User Fees - No longer used
Z - CADE

Note:

**AOIC User Fees refunds are not transcribed to post to Master File (CSPC Only)

Note:

If the Refund Schedule Number is less than 14 digits, fill in with ending zeros.

ECC Refund Schedule Number
ECC Generated "Rebate" Checks
Field Field Name Values
YYYY Year
"YYYJJJSCTXXAA"
Current year e.g., "20XX"
JJJ Julian Date 001-365 (366 Leap year)
SC Submission Processing Center
ATSPC 07
ANSPC 08
KCSPC 09
CSPC 17
AUSPC 18
PSPC 28
OSPC 29
FSPC 89
T File Type
0 = BMF
1 = IMF
3 = CADE
4 = IRAF
5 = Other
6 = ANMF
XX ECC Generated Rebate Type See Below
 
07 - Atlanta
08 - Andover
09 - Kansas City
17 - Cincinnati
18 - Austin
28 - Philadelphia
29 - Ogden
89 - Fresno
97 - International (AUSPC)
98 - International (OSPC, CSPC)
AA Literals Two Blanks

Refund Schedule Number (RSN) Translation for TAS/BETC

The link below provides access to the SPS Refund Schedule Number Alpha-TAS/ BETC Translation Chart on the SPATP, SharePoint site:
https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx

Note:

This chart translates the RSN Alpha Definition Field Value to the existing Treasury Account Symbol. The existing Treasury Account Symbol is now converted to the new CGAC Treasury Account Symbol, which will need to be used when entering manual refund information into the Secured Payment System (SPS).

Manual Refund Schedule Number/IDRS Formats as Entered into the Secured Payment System (SPS)

RSN TYPE
Manual
1/2002 FORMAT
Y=YEAR
SC=IRS CAMPUS
T=FILE TYPE (0=BMF, 1=IMF ETC.)
JJJ=JULIAN DATE
PC=LITERAL
OR
Y=YEAR
JJJ=JULIAN DATE
SC=IRS CAMPUS
T=FILE TYPE (0=BMF, 1=IMF ETC.)
AAA=VARIOUS
ALPHA/NUMERIC
2/27/2002 FORMAT 6/28/2002 FORMAT 1/2003 FORMAT CURRENT FORMAT
Y=YEAR
JJJ=JULIAN DATE
SC=IRS CAMPUS
T=FILE TYPE (0=BMF, 1=IMF, ETC.)
AAAA=VARIOUS ALPHA/NUMERIC
IDRS YJJJSCTIG   YJJJSC5IG YJJJSC5AA SAME AS 2/27/2002  
  Y=YEAR
JJJ=JULIAN DATE
SC=IRS CAMPUS
T=TYPE
IG=LITERAL
  Y=YEAR
JJJ=JULIAN
DATESC=IRS CAMPUS
5=LITERAL
IG=LITERAL
Y=YEAR
JJJ=JULIAN DATE
SC=IRS CAMPUS
5=LITERAL A=W, WI
   
IMF SAME AS 12/2001   SAME AS 12/2001 SAME AS 12/2001 YJJJSCTAAA  
          Y=YEAR
JJJ=JULIAN DATE
SC=IRS CAMPUS
1=LITERAL
AAA=I, FI, SPACES
 
ECC Rebate Checks           YYYYJJJSCTXXAA
            Y=YEAR
JJJ=JULIAN DATE
SC=IRS CAMPUS
T=FILE TYPE
XX=ECC GENERATED REBATES TYPES
AA=BLANKS

Blocking Series Chart for Document Code 45, SF 1098 and TRACS Processing

AO/SC CODE BLOCKING SERIES DESCRIPTION DOC CODE 45 TRANSACTION CODE PROCESSED BY
SC 220–299 REPAYMENT OF ERRONEOUS IMF/BMF FORM 3245 720 RECEIPT AND CONTROL
ULC 500–519 IMF/BMF SF 1098
FORM 3245
841/740 ACCOUNTING
ULC 520–529 ANMF SF 1098
FORM 3245
841/740 ACCOUNTING
ULC 530–539 IMF-IRAF SF 1098
FORM 3245
841/741 ACCOUNTING
ULC 540–549 IMF/BMF/
ANMF
TFS 3813/
FORM 3245
843/742 ACCOUNTING
ULC 550–554 IMF/BMF SF 1081 DEBIT/
POC TRACS
FORM 3245
843 ACCOUNTING
ULC 550–553 IMF/BMF SF 1081 DEBIT
SETTLEMENT
AUTHORIZED
FORM 3245
840 ACCOUNTING
ULC 555 INTERCEPTED
CHECKS
MANUALLY
PROCESSED
1098 LISTING
SF 1098/
FORM 3245
841 ACCOUNTING
ULC 666 IMF/BMF/
ANMF
LIMITED PAYABILITY
CANCELLATION
CREDIT/
TRACS
FORM 3245
740 ACCOUNTING
ULC 800 REPAYMENT OF ERRONEOUS REFUNDS ANMF FORM 3245 720 RECEIPT AND CONTROL

Reason for Cancellation Codes (SF 1098)

RRC CODE Description Trans. Code Freeze Code Block and Serial Number
01 Intercept Checks (December-2014 and prior) 841 P- 55555
02 Undeliverable Checks 740 S- 99999
03 Returned Checks (other than intercepted or undeliverable) 841 P- 99999
04 Effective January-2015 Intercept Checks (CC NOREF) 841 P- 77798
08 Unavailable Check Cancellation Credit (returned on outstanding checks as a result of a check claim, CC CHKCL/Status 32) 841 P- 88899
09 Unavailable Check Cancellation Credit 841 NONE 88888
09 Reclamation Credit 841 NONE 88000
09 Outstanding check as the result of a paper 1184 841 NONE 88111
11 Taxpayer correspondence attached. (Also could include a photocopy fee refund cancelled that would not show on the MF.) 841 NONE 99999
40 Limited Payability (LP) expired credit 740 S- 66666
666XX (prior to 1992)
71 Unavailable Check Cancellation Offset Return. As a result of an agency claim, only the TOP offset amount of the original payment is returned. See IRM 21.4.6, Refund Offset. 841 See IRM 21.4.6
, Refund Offset.
88888
72 Unavailable Check Cancellation Partial Payment Return. As a result of an agency claim, only the net amount of the original payment after TOP offset is returned. See IRM 21.4.6, Refund Offset. 841 See IRM 21.4.6
, Refund Offset.
88888

Form 3809 Miscellaneous Adjustment Voucher

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