3.24.7 Delinquent Accounts

Manual Transmittal

January 26, 2018

Purpose

(1) This transmits revised IRM 3.24.7, ISRP System, - Delinquent Accounts.

Material Changes

(1) IRM 3.24.7.1 added new section titled "Program Scope and Objectives" to comply with new Internal Controls.

(2) IRM 3.24.7.1.1 added new section titled "Background" to comply with new Internal Controls.

(3) IRM 3.24.7.1.2 added new section titled "Authority" to comply with new Internal Controls.

(4) IRM 3.24.7.1.3 added new section titled "Responsibilities" to comply with new Internal Controls.

(5) IRM 3.24.7.1.4 added new section titled "Program Management and Review" to comply with new Internal Controls.

(6) IRM 3.24.7.1.5 added new section titled "Program Controls" to comply with new Internal Controls.

(7) IRM 3.24.7.1.6 added new section titled "Terms, Definitions/Acronyms" to comply with new Internal Controls.

(8) IRM 3.24.7.1.7 added new section titled "Related Resources" to comply with new Internal Controls.

(9) Editorial and date changes made throughout this IRM.

(10) IPU 17U1218 issued 08-02-2017 Date changes to Elements Tax Period and Transaction Date changes in Exhibit 3.24.7-2, Exhibit 3.24.7-3, Exhibit 3.24.7-4, and Exhibit 3.24.7-5.

Effect on Other Documents

IRM 3.24.7, dated November 17, 2015 (effective January 1, 2016) is superseded. The following Interim Procedural Update has been incorporated into this IRM: IPU 17U1218.

Audience

Wage and Investment Submission Processing Integrated Submission and Remittance Processing operators.

Effective Date

(01-26-2018)

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

Program Scope and Objectives

  1. Purpose: The Integrated Submission and Remittance Processing System (ISRP) is used to process forms and remittances. Data is entered, processed and fed to other IRS systems. This chapter provided instructions for the Original Entry, Key Verification, and Block Edit of tax returns and related data through ISRP.

    1. This section provides instructions for entering and verifying data from block control documents and source documents for Delinquent Accounts Transactions, using the Integrated Submission and Remittance Processing (ISRP) system.

  2. Audience: The primary users of this IRM are Submission Processing employees; mainly data transcribers, clerks and managers

  3. Policy Owner: The Director of Submission Processing

  4. Program Owner: Paper Processing Branch, Mail Management / Data Conversion Section (an organization within Submission Processing)

  5. Primary Stakeholder: Management officials who rely on accurate data gathered by the ISRP Program

Background

  1. The Integrated Submission and Remittance Processing (ISRP) System transcribes and formats data from paper returns/documents/vouchers for input into the Generalized Mainline Framework (GMF) and other systems by key entry operators. It also captures check images for archiving. Transaction Management System (TMS) is a Commercial-Off-the-Shelf (COTS) product that is an integral part of ISRP.

Authority

  1. The following provides authority for the instructions in this IRM to be performed in support of completing compliance functions to make credits or refunds of any internal revenue tax, processing of non-revenue forms, and administrative support forms.

    1. Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC).

    2. All Policy Statements for Submission Processing are contained in IRM 1.2.12, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities:

    • Code sections which provide the IRS with the authority to issue levies.

    • Congressional Acts which outline additional authorities and responsibilities like the Travel and Transportation Reform Act of 1998 or the Tax Reform Act of 1986.

    • Policy Statements that provide authority for the work being done.

Responsibilities

  1. The Operations manager is responsible for securing, assigning and providing training for the staff needed to perform the task required throughout this instruction.

  2. The Planning and Analysis Staff is responsible for providing feedback and support to local management to achieve and effectively monitor scheduled goals.

  3. The team manager is responsible for and assigning, monitoring and controlling the work flow to accomplish timely completion of the tasks required throughout this IRM.

  4. The employee is responsible for applying the instruction present to the assigned task on the ISRP system to accurately convert paper data to electronic data record for proper posting for use by the Service.

Program Management and Review

  1. Program Reports: Below are a list of reports to use to show receipts, production and inventory for the paper return to electronic data conversion process. These reports will be utilized to report and monitor daily and weekly status of the program to completeness.

    • PCC 6040, SC WP&C Performance and Cost Report

    • PCC 6240, SC WP&C Program Analysis Report

  2. Program Effectiveness: Goals will be measured utilizing standard managerial reports by documents processed per hour and completion of each function compared to the established schedule for completion each week. Each functionality is expected to retain or exceed schedule prior to the program completion date stated in IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates. Quality reviews are expected to be conducted and monitored by local management and corrective action taken to ensure quality products are released to the next function.

  3. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager

Program Controls

  1. The reports for the Control Data Analysis, Project PCD, are on the Control-D/Web Access server, which has a login program control.

Terms, Definitions/Acronyms

  1. The following terms or acronyms are utilized throughout this IRM:

    Term Definition
    Key Verification (KV) The operators perform quality review on payments through an electronic method called Key Verification.
    Original Entry (OE) The operators manually key enter data from both scanned images and paper documents.

Related Resources

  1. IRM 3.24.37, ISRP System - General Instructions.

  2. IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates.

Introduction

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

Control Documents

  1. Following is a list of block control documents from which data may be transcribed:

    1. Form 1332, Block and Selection Record

    2. Form 3893, Re-Entry Document Control

    3. Form 5466-B, Multiple Records of Disclosure

Transaction Forms

  1. Following is a list of the input forms from which data may be transcribed:

    1. Form 3177, Notice of Action for Entry on Master File

    2. Form 5466-B, Multiple Records of Disclosure

Forms/Program Numbers/Tax Class Document (Doc.) Codes/Transaction (Trans.) Codes

  1. Following is a list of valid Form and Program Numbers.


    FORMS
    PROGRAM NUMBERS TAX CLASS DOC. CODES TRANS. CODES
    3177 15502 Business Master File (BMF) 977 460
    3177 45502 Individual Master File (IMF) 277 460
    3177 72880 Employee Plans Master File (EPMF) 077 460
    5466-B 15507 (BMF) 977 460
    5466-B 45507 (IMF) 277 460

MUST ENTER Fields

  1. Some fields require entry of data. These Fields are referred to as MUST ENTER Fields. They are indicated in the Transcription Operation Sheets by the presence of stars (★★★★★★). See IRM 3.24.37.4.6, MUST ENTER Fields, for procedures related to MUST ENTER Fields.

Required Sections

  1. Original Entry–these are one section documents.

  2. Key Verification (KV) –all data entered from these documents by Original Entry (OE) must be verified.

Name Control Check

  1. If a document is entered with a Name Control (NC) rather than a Check Digit (CD), the system will access the Enhanced-Entity Index File (E-EIF) to determine if the account is already established on the Master File. This procedure is being done to reduce the number of unpostables.

  2. As soon as the Taxpayer Identification Number (TIN) field is entered, the system will access E-EIF. During this time, screen activity will occur and no entry can be made into the terminal.

  3. When the check has been completed, the next prompt will appear and entry may continue.

    • If the account is located, the CD will appear in the CD field on the screen. The TIN/CD/NC fields will bypass verification.

    • If the account is not located, the NC will remain on the screen as entered.

    • Error Correction: If you determine that an error was made in keying the TIN or the NC after the E-EIF has been accessed, you cannot access the NC or Social Security Number fields to make a correction. Because the E-EIF has also identified an error and the error indicators have been set, you must press the <F9> key to abandon entry. Answer Yes to the question and then press <F4> to return. Re-enter the serial number, then rekey the document in error to make a correction. At this point, the E-EIF will be re-accessed with no error indicators set. This procedure affects all forms.

ISRP Transcription Operation Sheets

  1. The following exhibits represent specific data entry procedures.

Block Header Data Entry - Source Document or Record: FORM 1332 or FORM 5466-B FOR ORIGINAL INPUT DOCUMENTS or FORM 3893 FOR RE-ENTRY DOCUMENTS

Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) SC Block Control ABC   The screen displays the ABC that was entered in the Entry Operator (EOP) Dialog box, as described in IRM 3.24.37.2.6, EOP Dialog Box - Access Block. It cannot be changed.
(2) Block DLN DLN <ENTER> Enter the first 11 digits as shown on:
  1. Form 1332 — in the "Block DLN" box.

  2. Form 5466B — in box 2, "DLN"

  3. Form 3893 — in box 2.

  4. The EOP will verify the DLN from the first document of the block.

(3) Batch Number BATCH <ENTER> Enter the digits from the "Batch Control Number" box. If not present, secure the number from the Batch Transmittal Sheet.
(a) Form 3893 — box 3.
(4) Document Count COUNT <ENTER> Enter the document count as follows:
  1. Form 1332 and Form 5466-B — the circled serial number. If a full block (100 documents) or if a number is not circled, enter 100 (50 for 5466-B).

  2. Form 3893 — from box 4.

(5) Credit Amount CR <ENTER> No entry required. Press <ENTER> only.
(6) Debit Amount DB <ENTER> No entry required. Press <ENTER> only.
(7) Transaction Code TRCODE <ENTER> Enter as follows:
  1. Form 5466-B — press <ENTER> always.

  2. All other forms—enter "460" always.

(8) Transaction Date TRDATE <ENTER> No entry required. Press <ENTER> only.
(9) Master File Tax (MFT) Code MFT <ENTER> No entry required. Press <ENTER> only.
(10) Secondary Amount SECAMT <ENTER> No entry required. Press <ENTER> only.
(11) Source Code SOURCE <ENTER> If the control document is a Form 3893, enter from box 11 as follows:
  1. R = "Reprocessable" box checked.

  2. N = "Reinput of Unpostable" box checked.

  3. 4 = "SC Reinput" box checked.

  4. None of the boxes checked, consult your supervisor who will determine if a source code is required.

(12) Year Digit YEAR <ENTER> Enter the digit shown as follows:
  1. Form 1332 — in the "YR" box if other than the current year.

  2. Form 5466-B — in the "DLN Year" box if other than the current year.

  3. Form 3893 — in box 12 (current or otherwise).

  4. This is a MUST ENTER field if the Source Code is "R" , "N" , or "4" .

(13) Prior Year PRIOR YR <ENTER> Enter prior year digit, if applicable. Otherwise, blank.
(14) Remittance Processing System (RPS) Indicator RPS <ENTER> Enter "2" or "S" according to instructions in IRM 3.24.37.5.3, Mixed Data/Missing Section or Document.

Section 01 BMF—Form 3177 (Program 15502), Notice of Action for Entry on Master File

Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER#   Enter the last two digits of the 13 digit DLN from the DLN box, upper right margin or top center margin of the form. If the serial number has been generated by the system (see IRM 3.24.37.5.5, Entity Access for Key Verification) verify that it matches the document being entered.
(3) Name Control NC <ENTER> Enter the Name Control as follows:
  1. Enter the four character Name Control underlined or edited in the first name line area.

  2. If less than four characters, enter those shown followed by <ENTER>.

  3. If Name Control is illegible, enter one period and <ENTER>.

  4. Form 3177 — enter as shown in the Name Control box or Taxpayer Name Line.

(4) Employee Identification Number (EIN) / Social Security Number (SSN) TIN Auto Enter the nine digit number from the area labeled "EIN or SSN" , "Your Social Security Number" , or "Employer Identification Number" on the form.
  1. If two account numbers are shown, enter nine periods.

  2. See standard rules in IRM 3.24.37, ISRP System - General Instructions.

Note:

E–(5) thru (8) must be present for Document 00.

 

Note:

If E–(5) thru (11) are the same as the previous document, press <F6> after the EIN/SSN.

(5) MFT Code MFT <ENTER> Enter the MFT Code as shown.
(a) If illegible or missing, enter a zero (0) and press <Enter>.
(6) Report/Plan Number RPT# <ENTER> Enter the edited three digit code shown to the right of the MFT Code.
  1. If MFT is 46, 76, 84, 85, or 86 then "RPT#" is a "MUST ENTER" field.

  2. If not present, enter one zero (0) and press <Enter>.

(7) Tax Period TAXPR <ENTER> Enter the four digits in YYMM format.
  1. Form 3177 — enter the digits under "Tax Period" . If not present, enter 1712.

  2. For special instructions, see IRM 3.24.37, ISRP System - General Instructions.

(8) Transaction Code CODE <ENTER> Enter the three digit Transaction Code as follows:
(a) Form 3177 — from Trans. Code column.
(9) Transaction Date DATE <ENTER> Enter the digits from "Date Received" or "Date" in MMDDYY format. If date is not present, illegible or incomplete, enter today's date or 03/15/18 whichever is earlier.
(a) For special instructions, see IRM 3.24.37, ISRP System - General Instructions.
(10) Extension to Date EXT DATE <ENTER> Enter the six digits in MMDDYY format. Use only with transaction code (TC) 460.
  1. Must be present if TC is "460" .

  2. Form 3177— enter the edited extension date.

  3. For special instructions, see IRM 3.24.37, ISRP System - General Instructions.

(11) Exempt Organization (EO) Group Code EOGRP <ENTER> Enter the digit "7" or "8" shown in the right middle margin of the two dots.
(12) Lobby Year Code LOB YR <ENTER> Press <Enter> only.
(13) Account Number (TIN) Prefix ANP <ENTER> Enter the edited zero (0) if present, following the TIN.
(14) Error Resolution System (ERS) Action Code ERSCD <ENTER> Enter the edited action code from the bottom left margin.

Section 01 IMF—Form 3177 (Program 45502)

Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Enter the last two digits of the 13 digit DLN from the DLN box, upper right margin or top center margin of the form. If the serial number has been generated by the system (see IRM 3.24.37.5.5, Entity Access for Key Verification) verify that it matches the document being entered.
(3) Name Control NC <ENTER> Enter the Name Control as follows:
  1. Enter the four character Name Control underlined or edited in the first name line area.

  2. If less than four characters, enter those shown followed by <ENTER>.

  3. If Name Control is illegible, enter one period and press <ENTER>.

  4. Form 3177 — enter as shown in the Name Control box or Taxpayer Name Line.

(4) EIN/SSN TIN Auto Enter the nine digit number from the area labeled "EIN or SSN" , "Your Social Security Number" , or "Employer Identification Number" on the form.
  1. If two account numbers are shown, enter 9 periods.

  2. See standard rules in IRM 3.24.37, ISRP System - General Instructions.

Note:

E–(5) thru (7) must be present for Document 00.

 

Note:

If E–(5) thru (7) are the same as the previous document, press <F6> after the EIN/SSN.

(5) Tax Period TAXPR <ENTER> Enter the four digits in YYMM format. Enter "0000" , if shown.
  1. Form 3177, enter the digits under "Tax Period"

  2. If not present, enter 1712.

  3. For special instructions, see IRM 3.24.37, ISRP System - General Instructions.

(6) Transaction Date DATE <ENTER> Enter the digits from "Date Received" or "Date" in MMDDYY format. If date is not present, illegible or incomplete, enter today's date or 04/16/18 whichever is earlier.
(a) For special instructions, see IRM 3.24.37, ISRP System - General Instructions.
(7) Extension to Date EXT DATE <ENTER> Enter the edited six digit extension date in MMDDYY format.
(a) For special instructions, see IRM 3.24.37, ISRP System - General Instructions.
(8) ERS Action Code ERSCD <ENTER> Enter the edited code if it appears on the input document.

Section 01 EPMF — Form 3177 (Program 72880) (5558 for 5500's)

Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER#   Enter the last two digits of the 13 digit Document Locator Number (DLN) from the DLN box, upper right margin or top center margin of the form. If the serial number has been generated by the system (see IRM 3.24.37.5.5, Entity Access for Key Verification) verify that it matches the document being entered.
(3) Name Control NC <ENTER> Enter the Name Control as follows:
  1. Enter the four character Name Control underlined or edited in the first name line area.

  2. If less than four characters, enter those shown followed by <ENTER>.

  3. If Name Control is illegible, enter one period and <ENTER>.

  4. Form 3177 — enter as shown in the Name Control box or Taxpayer Name Line.

(4) EIN/SSN TIN Auto Enter the nine digit number from the area labeled "EIN or SSN" , "Your Social Security Number" , or "Employer Identification Number" on the form.
  1. If two account numbers are shown, enter 9 periods.

  2. See standard rules in IRM 3.24.37, ISRP System - General Instructions.

 

Note:

E–(5) thru (8) must be present for Document 00.

 

Note:

If E–(5) thru (11) are the same as the previous document, press <F6> after the EIN/SSN.

(5) Report/Plan Number RPT# <ENTER> Enter the edited three digit code shown to the right of the MFT Code.
  1. If MFT is 46 or 76, then "RPT#" is a "MUST ENTER" field.

  2. If not present, enter one zero (0) and press <Enter>.

(6) Tax Period TAXPR <ENTER> Enter the four digits in YYMM format.
  1. Form 3177 — enter the digits under "Tax Period" . If not present, enter 1712.

  2. For special instructions, see IRM 3.24.37, ISRP System - General Instructions.

(7) Transaction Code CODE <ENTER> Enter the three digit Transaction Code (TC) as follows:
(a) Form 3177 — from Trans. Code column.
(8) Transaction Date DATE <ENTER> Enter the digits from "Date Received" or "Date" in MMDDYY format. If date is not present, illegible or incomplete, enter today's date or 03/15/18 whichever is earlier.
(a) For special instructions, see IRM 3.24.37, ISRP System - General Instructions.
(9) Account Number (TIN) Prefix ANP <ENTER> Enter the edited zero (0) if present, following the TIN.
(10) ERS Action Code ERSCD <ENTER> Enter the edited action code from the bottom left margin.

Section 01 Form 5466-B (Program 15507/45507)

Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER#   Enter the serial number from the "Serial" column.

Note:

On subsequent documents, if you press <F6> after entering the Serial Number, E–(3) thru E–(10) will be duplicated from the previous document. Be sure to enter any field that should not be duplicated.

(3) Name Control NC <ENTER> Enter the Name Control as shown.
  1. Enter the four character Name Control underlined or edited in the first name line area.

  2. If less than four characters, enter those shown followed by <ENTER>.

  3. If Name Control is illegible, enter one period and <ENTER>.

(4) SSN/EIN TIN Auto Enter the SSN/EIN as shown.
(5) Tax Period TAXPR <ENTER> Enter the Tax Period as shown in YYMM format.
  1. If all zeros, enter four zeros.

  2. If not present, enter 1712.

  3. For special instructions, see IRM 3.24.37, ISRP System - General Instructions.

(6) Transaction Date DATE <ENTER> Enter the Transaction Date as shown.
(a) For special instructions, see IRM 3.24.37, ISRP System - General Instructions.
(7) Disclosure Code DISC <ENTER> Enter the Disclosure Code as shown.
(8) Agency Code AGEN <ENTER> Enter the Agency Code as shown.
(9) Purpose Code PURP <ENTER> Enter the Purpose Code as shown.
(10) Source Code SOUR <ENTER> Enter the Source Code (SC) as shown.
(11) Report/Plan number RPT# <ENTER> Program 15507 only. Enter the edited three digit Report/Plan Number shown to the right of the MFT code. If not present, press <Enter>.
(12) Account Number Prefix ANP <ENTER> Enter the edited "0" (zero), if a "V" is present, from the shaded area following the TIN.

Note:

KV Operator — the system will stop on this field to allow for any corrections to prior fields. If no corrections are needed, press <ENTER>.

(13) ERS Action Code ERSCD <ENTER> Enter the edited code from the bottom left margin.