Part 25. Special Topics

Chapter 25. Revenue Protection

Section 8. Revenue Protection External Lead Procedures

25.25.8 Revenue Protection External Lead Procedures

Manual Transmittal

November 28, 2022

Purpose

(1) This transmits revised IRM 25.25.8, Revenue Protection External Lead Procedures.

Material Changes

(1) IRM 25.25.8.2.5 - Removed processing BMF leads from this subsection since mailbox personnel do not perform those procedures. IPU 22U0147 issued 01-24-2022.

(2) IRM 25.25.8.3(7) IF Then row 5 - Added a row to address a gap in procedures when the return is determined to be valid, but the check was stolen. The addition of the row led to subsequent rows being renumbered. IPU 22U0897 issued 08-17-2022.

(3) IRM 25.25.8.3(7) IF Then row 10 - Corrected the transaction code that was mistakenly entered to release the refund, as oppose to one that should have been used to hold it. IPU 22U0897 issued 08-17-2022.

(4) IRM 25.25.8.3.1(3) Row 4 Then - Changed the miscellaneous field for altered checks because IDRS would not accept the previous one. IPU 22U0147 issued 01-24-2022.

(5) IRM 25.25.8.3.2 - Removed throughout this subsection (i.e., including Notes and Table) all verbiage requiring TEs to update controls when working leads involving EIPs since they are no longer being issued and all account actions if the payment is recovered will be resolved systemically. Also added verbiage to close the controls after a determination was made or funds were recovered. IPU 22U0731 issued 06-21-2022.

(6) IRM 25.25.8.3(4) and (7) - Added guidance to address questionable returns filed to claim the Federal Fuel Tax Credit and the Family and Sick Leave Credit which was being promoted through social media. IPU 22U0875 issued 08-08-2022.

(7) IRM 25.25.8.3.3 - Removed throughout this IRM subsection actions requiring TEs to conduct the initial research on BMF leads, and added steps specific to what their requirements are with regards to processing them. These updates were the result of a review of these procedures which concluded that the current procedures were out of scope for TEs and an inefficient use of TEs time since Entity Fabrication and BMF IDT groups are more skilled to make the determinations. IPU 22U0731 issued 06-21-2022.

(8) IRM 25.25.8.3.3 - Relocated procedures in IRM 25.25.8.2.5 to subsection 25.25.8.3.3 which was created for TEs to follow versus mailbox personnel. IPU 22U0147 issued 01-24-2022.

(9) IRM 25.25.8.4 - Rewrote the Exception to clarify specifically what the IAT tool will update as it appeared to conflict with the leading paragraph. IPU 22U0731 issued 06-21-2022.

(10) IRM 25.25.8.4(3) - Revised the instructions for addressing non-IRS refunds as the current ones were obsolete. Also, a script was created to assist banks with requesting for the funds to be returned. IPU 22U0897 issued 08-17-2022.

(11) IRM 25.25.8.4(8) - Removed throughout the table the link referencing the LMS spreadsheet since it was not stored on any shared site. IPU 22U0731 issued 06-21-2022.

(12) IRM 25.25.8.4.1(1) Box 2 - Changed the group number shown to XX as the intention of listing the number was not to identify the specific group the inventory will be assigned to. IPU 22U0944 issued 09-12-2022.

(13) IRM 25.25.8.6 (2) Table - Removed from the table, the procedures which referenced controls 148XXXX012 and 148XXXX018 as it relates to leads involving an offset as the OCSE IRM explains what concluding actions need to be taken. The table rows were renumbered as a result. IPU 22U0731 issued 06-21-2022.

(14) IRM 25.25.8.9(2) - Clarified the sentence to make it clearer on what TE responsibility with regards to OCSE cases. IPU 22U0731 issued 06-21-2022.

(15) IRM 25.25.8.9(2) Note - Added to the introduction, the process involved in how RIVO receive the OCSE cases and reiterated the IRM guidance is for RIVO TEs assigned the cases. IPU 22U0147 issued 01-24-2022.

(16) IRM 25.25.8.9(3) - Removed the reference to determinations TEs make as it was no longer applicable to the guidance in this paragraph. IPU 22U0147 issued 01-24-2022.

(17) IRM 25.25.8.9(3) c- Removed the reference to "Partial" determinations due to analysis conducted to address workload concerns and inefficiencies because of resource constraints. IPU 22U0147 issued 01-24-2022.

(18) IRM 25.25.8.9(7) Table - Added and removed rows of instructions to address policy changes that impacted refund tolerances, elimination of Partial determinations, and procedures to make working OCSE cases more efficiently. This also resulted in the rows being renumbered. IPU 22U0147 issued 01-24-2022.

(19) IRM 25.25.8.12.1(6) Row 2 - Added a statement to specifically include reject reason code 18 since it is suspected ID Theft and those should go through TPP procedures for authentication. IPU 22U0147 issued 01-24-2022.

(20) IRM 25.25.8.12.1 - Revised throughout this IRM subsection, procedures TEs are required to follow when working NACHA cases, which also included step by step instructions for them to follow as it was not clear what the TE’s role was versus FRE. IPU 22U0731 issued 06-21-2022.

(21) IRM 25.25.8.12.1(11) Row 1 - Added a Note to remind TEs that accounts verified as valid should be released in masse weekly for efficiency purposes. IPU 22U0731 issued 06-21-2022.

(22) Corrected the row numbers referenced in 25.25.8.3(4) due to the addition of row 5 added to the If Then table in IRM 25.25.8.3(7). IPU 22U0897 issued 08-17-2022.

(23) Editorial changes were made throughout the IRM for the following. IPU 22U0875 issued 08-08-2022 :

  • Conducted a plain language review which also included punctuation, spacing, and spelling updates.

  • Updated links, references and websites.

Effect on Other Documents

IRM 25.25.8 dated December 10, 2021 (effective 12-12-2022) is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs) - IPU 22U0147 issued 01-24-2022, IPU 22U0731 issued 06-21-2022, IPU 22U0875 issued 08-08-2022, IPU 22U0897 issued 08-17-2022, IPU 22U0944 issued 09-12-20227.

Audience

Return Integrity Verification Operations employees.

Effective Date

(12-10-2022)

Related Resources

The related resources listed below may be accessed for account research and issue resolution:

  • Electronic Fraud Detection System Database (EFDS)

  • Lead Management System (LMS) and Offset Reversal Lead (OSRL)

  • External Lead Integrated Automated Technologies (IAT) Tool

  • RIVO Portal External Lead RIVO

Denise D. Davis
Director, Return Integrity Verification Program Management
Wage and Investment Division

25.25.8.1 (07-08-2020)

Program Scope and Objectives

  1. Purpose and Program Goals: This IRM section provides guidance for Return Integrity Verification Operations (RIVO) employees when screening Individual Master File (IMF) returns in the Electronic Fraud Detection System (EFDS) for possible identity theft and false income and withholding.

  2. Audience: RIVO employees

  3. Policy Owner: Denise D. Davis

  4. Program Owner: RIVPM program office

25.25.8.1.1 (09-23-2021)

Background

  1. Return Integrity Verification Program Management (RIVPM) strengthens the integrity of the tax system by:

    • Protecting the public interest by improving IRS’s ability to detect and prevent improper refunds

    • Serving the public interest by taking actions fairly and appropriately to identify, evaluate and prevent the issuance of improper refunds

    • Helping taxpayers understand the refundable tax credits for which they are eligible

    • Primary stakeholders are Return Integrity Verification Operations (RIVO), Accounts Management and Taxpayer Advocate

    • Program Goals: Provide guidance for screening and dispositioning returns claiming questionable refunds

25.25.8.1.2 (04-20-2020)

Program Management and Review

  1. The Return Integrity Verification Operation (RIVO) Monthly Performance Comparison Report, tracks the inventory, including receipts and closures. Additional report guidance is found in IRM 1.4.10, Return Integrity & Verification Operation Managers Guide.

  2. The Embedded Quality review program is in place to review all processes to ensure accuracy and effectiveness of the program. Goals, measures, and operating guidelines are listed in the yearly Operation Guidelines and in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support.

25.25.8.1.3 (04-20-2020)

Authority

  1. The following references provide authority for RIVO:

    • IRM 1.2.1.5.10, Policy Statement 4-21

    • IRM 1.2.2, Servicewide Policies and Authorities, Servicewide Delegations of Authority

    • IRM 1.1.13, Wage and Investment

    • Various Internal Revenue Codes (IRC) including but not limited to:

    • IRC 6402(a), Authority to make credits or refunds

    • IRC 6401, Amounts treated as overpayments

    • IRC 6404, Abatements of tax

    • IRC 6213, Restrictions on assessments and math error authority

25.25.8.1.4 (09-23-2021)

Responsibilities

  1. RIVPM has responsibility for information in this IRM. Information is published in the IRM on a yearly basis.

  2. The Director of RIVPM is responsible for the policy related to this IRM.

  3. The Chief of the RIVPM Policy & Analysis is responsible for ensuring this IRM is timely submitted to publishing each year.

  4. The Tax Analyst ensures this IRM is updated with current policies and procedures used by RIVO employees to manage their assigned inventory.

  5. RIVO employees are responsible for executing procedures per the guidance provided in this IRM.

  6. More information can be found in IRM 1.1.13.5, Return Integrity and Compliance Services.

25.25.8.1.5 (04-20-2020)

Acronyms

  1. For a list of Acronyms used throughout RIVO see IRM 25.25.1.1.6, Acronyms

25.25.8.1.6 (09-23-2021)

Related Resources

  1. The related resources listed below may be utilized for account research and issue resolution. These related resources may be accessed through the IRS Intranet-Servicewide Electronic Research Program (SERP) site.

    • Electronic Fraud Detection System (EFDS)

    • Lead Management System (LMS)

    • Offset Reversal Lead (OSRL)

    • External Lead Integrated Automated Technologies (IAT) tool

    • RIVO Portal for External Lead RIVO

  2. Integrated Data Retrieval System (IDRS) Follow IRM 21.2.1.3.2, Authorized IDRS Access.

  3. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC § 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For more information about the TBOR, see Taxpayer Bill of Rights.

25.25.8.1.7 (11-13-2020)

External Lead Program Overview

  1. An External Lead involves a questionable federal tax refund reported by financial institutions or various other sources. A lead can be a Treasury Check, direct deposit/Automated Clearing House (ACH), refund anticipation loan check or pre-paid debit card. The IRS RICS’ External Lead Program is responsible for receiving and processing leads, and ACH credits returned by financial institutions and other sources. RIVO External Lead teams work with IRS Submission Processing to receive questionable leads, screen, and validate them and subsequently request the recovery of refunds to reconcile the accounts.
    Lead Sources include:

    • Criminal Investigation

    • Refund Inquiry

    • Financial Institutions

    • Federal and State agencies

    • National Banks

    • State Banks

    • Savings and Loan Associations

    • Mutual Savings Banks

    • Credit Unions

    • Brokerage Firms

    • Government Agencies

    • Correctional Facilities

    • Various Other Sources

  2. Leads should be received into the general mailbox as follows:
    For External Use - efleads@irs.gov
    For Internal Use - *W&I-RICS External Fraud Leads

    Exception:

    Taxpayer Advocate Service (TAS) follows the Return Integrity and Compliance Service (RICS) Service Level Agreement (SLA) addendum procedures.

  3. Lead source will be notified in 10 days to return or keep the funds, unless the lead contains a large volume of accounts.

25.25.8.2 (01-24-2022)

External Lead Mailbox Process

  1. Employees assigned to the mailbox process will review e-mails received and identify lead types and/or inquiries by flag. Follow local procedures for flag determinations.

    Note:

    If the inquiry is from a new financial institution, send the Publication 5033, IRS External Leads Program: Fact Sheet on Submitting Leads and the Lead Submission Spreadsheet Template using the applicable feedback script.

    Note:

    If the inquiry requires elevation to headquarters, flag the e-mail red and then follow local procedures for elevation.


    Lead Types

    • TOP Offsets

    • Refund Anticipation Loan (RAL)

    • Leads with funds available

    • Lead only (no funds available) - follow procedures in IRM 25.25.8.2.1, Lead Only (No Funds Available)

    • Automated Clearing House (ACH) Reversals - follow procedures in IRM 25.25.8.2.2, Automated Clearing House (ACH) Reversals

    • Altered Checks -- follow procedures in IRM 25.25.8.2.3, Altered Checks

    • Questionable Business Master File returns -The account number for these leads will be identified with an Employer Identification Number as the TIN. See IRM 25.25.8.3.3, BMF External Lead Procedures for more information

    • Centralized Check Process leads involving returned Treasury checks, third-party checks and/or miscellaneous repayments. See IRM 25.25.8.11, Centralized Check Process for more information

    • Economic Impact Payment (EIP) - see IRM 25.25.8.2.5, Identifying Economic Impact Payments and IRM 25.25.8.3.2, Processing Economic Impact Payment Leads for further information

  2. Update lead information on the Financial Contact Information spreadsheet on the Austin Shared drive. Create the lead number based on the date of receipt (MMDDYY), and then the sequence number (xx) indicating the order in which the lead was received during the day.

    Example:

    Lead receive date is February 2, 2016, and it was the third one received based on the time of receipt, the lead number will be 020216 03

    .

    Note:

    If the lead involves only a BMF account, add the letter B following the lead number. Flag e-mail per local procedures and assign to Fresno, Team 305. Refer to IRM 25.25.8.2.5, BMF External Lead Procedures for lead with both IMF and BMF accounts included.

  3. Issue an acknowledgement e-mail to the financial institution with the assigned lead number.

    Exception:

    If the lead source comes from Criminal Investigation (CI) or Small Business Self Employed (SBSE) personnel, do not send the bank an acknowledgement e-mail.

    Reminder:

    If the financial institution does not send the approved spreadsheet, first check the bank point of contact list for an explanation. If no previous explanation has been given to the financial institution, attach the Lead Submission Spreadsheet Template and include the Non-Standard External Lead Template feedback script along with the acknowledgment script. Annotate the spreadsheet with the financial institution’s response. Add "agreed" , or if the financial institution is unable to use the spreadsheet, add comment "unable to use" , etc.

    Note:

    If the e-mail/attachments contain unsecured /unencrypted Personally Identifiable Information (PII), ensure the acknowledgment reply includes the encryption feedback script.

    Caution:

    DO NOT disclose internal research guidance in e-mail referrals. Also, remove all internal information from correspondence received from the SA and/or HQ before sending to the financial institution.

  4. Create the lead folder as follows: using the naming convention: lead number, financial institution name, and first initial, last name of the Point of Contact (POC) who submitting the lead. Save to the designated site folder.

    Note:

    If the lead was submitted by CI or SBSE Collection personnel, the folder name should include an abbreviated job title for the point of contact and their last name. For example, if a lead was submitted by CI Investigative Analyst Joe Hog the folder should be named 030920 01 West Bank IA Hog.


    The following items must be saved to the lead folder:

    • Original e-mail saved as PDF

    • Acknowledgement e-mail saved as a PDF

    • Spreadsheets/attachments received with the e-mail (Lead Submission Spreadsheet)

    • All follow-up/inquiry e-mails associated to the lead saved as a PDF

    Caution:

    Do not edit or modify any original documents received.

  5. Lead folders will be placed in the appropriate site’s folder.

    Note:

    Business Master File (BMF) leads found in the External Lead mailbox will be flagged for Ogden review and placed in that site’s folder.

  6. Import all leads to the Lead Management System (LMS). Review LMS for successful import.

    Exception:

    DO NOT load "Lead Only - No Funds" .

    Reminder:

    Please ensure to load the institution’s Routing Transit Number whenever present on the spreadsheet.

  7. Some leads may require priority handling, including pre-refund stop date research and verification. (Such as Lead only and ACH reversals).

25.25.8.2.1 (07-08-2020)

Lead Only (No Funds Available)

  1. Contact the financial institution to ensure there are no funds available.

  2. Do not create a lead number or import to Lead Management System (LMS).

  3. Send acknowledgement using "Lead Only" feedback script.

  4. Refer all leads where no funds are available to the Industry Lead Mailbox using ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, "lead only" as the subject line.

    Reminder:

    Do not forward e-mails sent from the bank secured website. Create a new e-mail, include attachments and a secure password.

    Reminder:

    This is not an encrypted mailbox. Therefore, create a password protected zip file, and then send the referral to Industry Fraud Leads. A confirmation e-mail will be received by the sender once the file is received. Refer to IRM 10.5.1.6.2, Encryption, for additional guidance when encrypting SBU data (including PII and tax information).

25.25.8.2.2 (07-08-2020)

Automated Clearing House (ACH) Reversals

  1. Open the ACH control base as "C#,BKLDACHREV, A, MISC,148XX00005" .

  2. Initiate refund stopping actions, and follow procedures in IRM 25.25.2.4, Stopping the Refund.

  3. Send the ACH Reversal feedback script by e-mail and attach Pub 5033, "IRS External Leads Program: Fact Sheet on Submitting Leads" to the financial institution.

25.25.8.2.3 (06-22-2021)

Altered Checks

  1. An altered check involves a fraudulent act to change an original Treasury check payee’s name, address and/or the dollar amount in order to cash it.

  2. The Treasury Inspector General for Tax Administration (TIGTA) has oversight in investigating these types of checks.

  3. When an altered check is identified in the mailbox process send the Request for Altered Check to be Returned (Both scanned and/or Physical) script to the financial institution.

    Exception:

    If the altered check is in the possession of the External Lead team do not send the script. The check should be handled with rubber gloves, place in a plastic bag, and then secured for 90 days to allow TIGTA to follow up.

    Below is a summary of the information contained in the script:

    1. A request to create an image of the front and back of the altered check.

    2. A request for, gloves to be worn while handling the physical check.

    3. A request that the check be placed in a safe and secure place for 90 days to allow for a follow up from a Special Agent.

    Caution:

    If a lead involves both an altered and non-altered check, see IRM 25.25.8.3.1, Processing Altered Checks for information on assigning the lead number.

25.25.8.2.4 (07-08-2020)

Other Inquiries

  1. Inquiries or other miscellaneous information may be found while reviewing the External Lead mailbox.

  2. Inquiries requiring elevation to RIVPM Policy Analyst External Lead program POCs.

  3. Send taxpayer inquiries received in the lead mailbox an acknowledgement using feedback script "Taxpayer inquiries" .

  4. When replying to the bank/financial institution for reclamation claims include the feedback script "Reclamation Claims" . Flag the e-mail and forward it to the site assigned the lead.

  5. Recovery from 3rd party check e-mails will be assigned to the Centralized Check Process (CCP) POC. Do not create a lead on these referrals. Scan the third-party check and save to the CCP folder. Notate on photocopy if original check or copy of check received.

25.25.8.2.5 (11-13-2020)

Identifying Economic Impact Payments

  1. The Economic Impact Payment (EIP) was authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Payments are identified as follows:

    • EIP 1 and 2 payments post to the 2020 tax year module

    • EIP 3 payments post to the 2021 tax year module

    • IDRS Command Code ENMOD and IMFOLE will post the transaction as a TC 971 AC 199. The source used to determine eligibility will also be posted to the module (i.e., tax year 2019 or 2018 tax return, REB, SSA, or RRB)

    • The amount of the payment (1/2 of the payment if filing status claimed on tax return is MFJ)

    • Julian date = 999

    • TC 766 posted with Credit Reference Number 338 (amount attributable to the primary and secondary taxpayer) and/or 257 (amount attributable to qualifying children)

    • If the EIP was an ACH deposit that was rejected using return reason code 17, the Control D report will display an R after the 202012 tax period

25.25.8.3 (08-17-2022)

Processing External Leads

  1. The Lead Management System (LMS) is used to assign a lead to Tax Examiners (TE). Export the LMS spreadsheet and review all information provided in the lead folder.

  2. If the lead is incomplete, refer the lead to the local point of contact (POC) to contact the institution for the information missing.

    Reminder:

    Save any additional e-mails/attachments received to the associated lead folder as a PDF.

    Reminder:

    Update the institution’s RTN if not present on the spreadsheet. Attempt to retrieve the number from EFDS or CC IMFOBT. If the routing number is not available input a zero in the field in LMS.

    Note:

    If the institution response contains a statement that all available information is provided, do not contact the institution.

  3. Research the account for TC 971 AC 123 with MISC field "TPP Recovery." . If present, do not research further, request the financial institution return the funds.

  4. Review the account to determine if Form 4136, Credit for Federal Tax Paid on Fuels was used to claim the Fuel Tax Credit (FTC) or Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals was used to claim the Sick Leave credit. Note, this form is currently obsolete as it was only intended for use tax years 2020 and 2021. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See the table below to assist with identifying each credit and paragraph 7, row 10 -12, for additional information on how to work these cases.

    Fuel Tax Credit Sick Leave Credit
    IDRS CC TXMODA will display a TC 766 with the applicable Credit Reference Number (CRN) of the fuel type paid. See Form 4136 to see the specific CRN claimed. IDRS CC TXMODA will display a TC 766 with the applicable Credit Reference Number (CRN) 299 or 271.

    • CRN 299 - Qualified sick and family wages for wages paid April 1, 2020, through March 31, 2021

    • CRN 271 -Qualified Sick and Family Leave for wages paid April 1, 2021, through September 30, 2021
    IDRS CC TRDBV and the Employee User Portal MeF files can be used to view the Form 4136 filed. IDRS CC TRDBV and the Employee User Portal MeF files can be used to view the Form 7202 filed.
    See IRM 4.19.15.16, Fuel Tax Credit Claimed on Form 4136 for additional information. See IRM 4.19.14.12.9.4, Sick and Family Leave Credit (No current year business reported) for additional information.

  5. The External Lead (EL) IAT tool is used to input a TC 971 AC 134, TC 971 AC 850, and to open a control base on IDRS, "C#,BKLD,A,MISC
    148(XX)00001,*" .

    Note:

    Review the detail report from the EL IAT tool ensuring actions were input to the correct tax period. Manually input action that did not populate from the tool.

    Reminder:

    Do Not open controls on the Internal Revenue Service Number (IRSN) when the SSN is available. See IRM 3.21.263.5.5, Internal Revenue Service Number (IRSN), for other IRSN uses.

    Reminder:

    If you determine the funds were not from the IRS, do not request them to be returned. Close the control with "NOTIRSFNDS,C,MISC" and update LMS comments. If the refund is from a federal agency other than the IRS, respond using the Non IRS Refund Check script located at the RIVO Portal External Lead Feedback Script page.

  6. The EL IAT tool decides on whether the return is valid or not. If the tool was unable to decide, follow the research steps below to assist in a manual determination:

    1. Review the reason for referral provided by the financial institution.

    2. Follow IRM 25.25.2.2, Data Mining Screening, to help in deciding if the return is valid.

      Exception:

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

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    3. Identify any previous IDRS reversal adjustments on the account.

    4. Review the account for Exam activity (TC 42X, -L freeze etc.).

      Note:

      If Exam closed their audit and a determination was made ( i.e., TC 30X), consider the return valid as filed. Do not request for the funds to be returned. If the funds were already returned, release the funds.

    5. Search entity modules for indications of identity theft such as a previously posted TC 971 with Action Code (AC) 5XX. See IRM 3.5.20.2.8.1, Identity Theft Indicator.

    6. Review IDRS for any payments (TC 610, TC 670, TC 430, TC 716, etc.).

    7. Review account for any balance due conditions (this may indicate other actions taken on the account).

    8. Review IDRS for extension to file (TC 460).

    9. Review EFDS notes for indication of previous RIVO involvement.

    10. Review account for posted TC 971 action code 078, indicating forgery.

      Note:

      Research for open issues and use Contact Employer for any previous verified good IDOCs.

    11. Review IDRS CC TXMOD for the tax period in question and ensure there are not any open controls not in "B" status. Contact the open control, if found, before taking any action.

  7. After making a decision, follow the table below.

    If And Then
    1
    the return is two years prior or older to the current processing year

    Note:

    NO further research is required

    		  

    • Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
      148XX00002" .

    • Prepare indemnification letter to request funds from the financial institution.

    • Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) REQFUNDS IDT" .

    • Import LMS spreadsheet with results to the "Update" folder.

    • Notify POC that the indemnification process is complete.
    2
    the return is current processing year or one year prior    		 the return is questionable AND no funds were received with the lead

    • Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
      148XX00002"

    • Prepare indemnification letter to request funds from the financial institution and save in the associated lead folder

      Note:

      When necessary, update Lead Template with funds to be returned/not returned for all associated accounts and save in the associated lead folder.

    • Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) REQFUNDS"

    • Import LMS spreadsheet with results to the "Update" folder

    • Notify POC that the indemnification process is complete
    3
    the return is questionable    		 funds were received with the lead See IRM 25.25.8.4, Processing External Lead Deposits.
    4
    the return is valid    		 no funds were received with the lead

    • Update/Input IDRS control to "Cxx,VALID150,C,MISC
      148XX00007"

    • Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) VALID150"

    • Input TC 972 AC 134 to reverse RIVO indicator

      Reminder:

      If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134".

      Note:

      When necessary, update and save Lead Template with funds to be returned/not returned for all associated accounts.

    • Import LMS spreadsheet with results to the "Update" folder.

    • Notify POC that the indemnification process is complete
    5
    The return is valid    		 The refund check was stolen

    • Update/Input IDRS control to Cxx,REQFUNDS,A,MISC
      148XX00002      .

    • Prepare an indemnification letter to request funds be returned.

    • Add a comment to LMS stating Valid Return/Recovering Stolen Check. Also Enter as a Note in AMS and EFDS, if the return is in EFDS, the same comment.
    6
    the return is found to be valid    		 funds were received with the lead See IRM 25.25.8.4, Processing External Lead Deposits.
    7
    the return is good or bad    		 no funds are available to be returned (the spreadsheet from the bank shows $0 available)

    • Update/close the control to "NOFNDSAVLB,C"

    • Add a note to EFDS , Lead number and "no funds available"

    • Update LMS
    8
    The return is good or bad    		 there is "TPP RECOVERY" in the MISC field

    • Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
      148XX00002"

    • Prepare indemnification letter to request funds from the financial institution and save in the associated lead folder

      Note:

      When necessary update Lead Template with funds to be returned/not returned for all associated accounts and save in the associated lead folder.

    • Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) REQFUNDS"

    • Import LMS spreadsheet with results to the "Update" folder

    • Notify POC that the indemnification process is complete
    9
    Lead is submitted by CI or SBSE Collection personnel

    Note:

    Return is always considered bad

    		  

    • Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
      148XX00002" .

    • Prepare an indemnification letter to request the refund be returned.

    • Send the bank POC the Non-bank Recovery Assistance feedback script and the indemnification letter. Send both the day the lead is received unless it’s after hours. Then send the next business day. Save both and all follow-up e-mail inquiries to the associated lead folder.

      Reminder:

      Copy the lead source on all e-mail inquiries.

      Note:

      If the lead source does not provide a bank POC, check the financial Institution POC Listing for a good contact. Send the letter and script to that bank POC e-mail address.
      If no reliable bank POC is found, notify the lead source a bank POC e-mail address needs to be provided to issue the request.

    • Update EFDS notes with" BKL lead number (lead number =MMDDYY XX ) REQFUNDS IDT" .

    • Import LMS spreadsheet with results to the "Update" folder.
    10
    Current or prior year Form 1040 was filed claiming the Fuel Tax Credit (FTC) or Credits for Sick Leave for Certain Self-Employed Individuals.    		 The accounts contain either of the following markers:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Update/Input IDRS control to Cxx,REQFUNDS,A,MISC
      148XX00002

    • Prepare an indemnification letter to request funds

    • If funds are recovered, post to the account

    • Input a TC 570 to hold the refund

    • Suspense the account until further notice.
    11
    Current or prior year Form 1040 was filed claiming the Fuel Tax Credit (FTC) or Credits for Sick Leave for Certain Self-Employed Individuals.    		 The account does not contain one of the markers outlined above

    • Update/Input IDRS control to Cxx,REQFUNDS,A,MISC
      148XX00002

    • Prepare an indemnification letter to request funds

    • If funds are recovered, post to the account

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    12
    Current or prior year Form 1040 was filed claiming the Fuel Tax Credit (FTC)    		 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Example:

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

    Exception:

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

    • Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
      148XX00002" .

    • Prepare an indemnification letter to request funds be returned.

    • Once funds are recovered, Input control C#, Man2EXAM,B,MISC*,*

    • Input the information on the Manual Referral spreadsheet,WI Exam Questionable Fuel Tax Credit tab

25.25.8.3.1 (01-24-2022)

Processing Altered Checks

  1. The Tax Examiner (TE) will review the lead to determine if the account involves only an altered check, or a combination of accounts with altered and non-altered checks. Once the review is completed, the lead number will be assigned accordingly
    Altered Checks only - Create a new lead number that consist of the original lead number assigned, followed by the letter "A" .
    Combination - Do not change the lead number assigned. Notate in the LMS Comment field for the account involving an altered check, the note Altered Check.

  2. Once the lead number is assigned, the TE will take the following actions with regards to the altered check:

    • Whether or not the TE is in possession of the physical altered check, handle it with rubber gloves, make a pdf copy of it, place it in plastic bag and then secure it for 90 days to allow TIGTA to follow up.

    • If the TE is in possession of the check or not refer the PDF copy of the check and the lead number to the TIGTA Complaints Management Team (CMT) at OI.AdditionalReports@tigta.treas.gov with a copy to IRS CI mailbox at SDCLeads@ci.irs.gov. TIGTA CMT will respond with a reference number, which should be added to the folder of the lead created.

      Note:

      A TIGTA Special Agent will contact the financial institution to retrieve the altered check if they are in possession of it.

      Note:

      Since these mailboxes are not secure, password protect the document.

    • Include the following when sending the PDF document. This information should also be password protected:
      a. State who is in possession of the physical check (i.e., If RIVO provide the TE and Manager name, POD address, phone number, and e-mail address).
      b. If the bank is in possession of the physical check, provide a PDF copy of the e-mail received, and make sure it includes the bank name, POC name, phone number, and e-mail address.
      c. Image of the front and back of the altered check(s) received from the bank.
      d. A screenshot image of the check issued as shown on the Treasury Check Information System (TCIS).
      e. If provided, the city and state where the check was presented to the bank.

  3. The table below provides procedures to follow based on the scenario which caused the altered check condition.

    If And Then
    1
    Altered name and/or money amount    		 the return is good, and the check was not negotiated

    • Access TCIS to F stop the check

    • Monitor for TC 841 to post, suspend to 148XX00017

    • Request physical check from the financial institution

    • Reissue to good taxpayer after TC 841 posts
    2
    Altered name and/or money amount    		 questionable refund and the check was not negotiated

    • Access TCIS to F stop the check

    • Request physical check from the financial institution

    • Monitor for TC 841 to post, suspend to 148XX00014

    • Disposition to ACE/ADJ once funds post to the account

    • Input EFDS return note, "RIVO EL IDT BKLD"
    3
    Altered name and/or money amount    		 the return is good, and the check was negotiated

    • Open a closed IDRS control:
      "C#,ALTEREDCK,C,EVFY "
      148XX00003,*

    • Update AMS and EFDS notes, notate "Received altered treasury check" enter altered dollar amount, original dollar amount, and check number. Indicate if the original check was received or a copy.
    4
    Altered name and/or money amount    		 questionable refund and the check was negotiated

    1. Input TC 971 AC 134 (if not already present).

    2. Open a closed IDRS control:
      "C#,ALTEREDCK,C,EVFY "
      148XX00003,* .

    3. Request physical check from the financial institution.

    4. Update EFDS notes, notate Received altered treasury check, altered dollar amount and original dollar amount, check number, indicate if original check received or copy.

      Note:

      Disposition as "CAT 5 CL" if resolved by another function. Disposition as "CAT 7 CL" if resolved by RIVO.

      Note:

      If Process Status 49, follow local procedures to update.

      Note:

      Add prior year processed returns to the Mass Push Spreadsheet to be updated.

    5. Update AMS History notes with same information as EFDS notes.

    6. If indications of Identity theft, input TC 971 AC 522 (if one does not already exist on CC ENMOD) with Misc field "WI FA ALTRD" .

    7. Close all RIVO controls.

25.25.8.3.2 (06-21-2022)

Processing Economic Impact Payment Leads

  1. Upon the receipt of an Economic Impact Payment (EIP), input open Control number 148XX00001 on each account and activity code "BKLD" . Leads involving questionable EIPs will require the Tax Examiner to determine an individual’s eligibility. Use the table below for this purpose.

    Note:

    Due to EIPs no longer being issued for TYs 2020 nor 2021, and the RRC/EIP issue being outside of RIVO’s scope, TEs will only update controls to closed status once a determination is made.

    Caution:

    Due to a court ruling on October 14, 2020, an incarcerated individual cannot be denied an Economic Impact Payment if they meet eligibility requirements. See below the EIP Eligibility Criteria.

    Note:

    If the account contains estimated tax payments (i.e., TC 710, 716, OR 823), a manual refund will be required to release only the EIP portion.


    EIP Eligibility Criteria
    IF AND THEN
    1
    The Citizenship Code is A, there are no indicators of identity theft and the individual’s date of death occurred after the payment refund date.    		 A questionable EIP1, EIP2 or EIP3 lead was received

    • Do not recover the funds

    • Close control
    2.
    There are indicators of identity theft and/or the individual’s date of death occurred before the refund payment date.    		 A questionable EIP1, EIP2 or EIP3 lead was received, and the citizenship code is A, B, C, D, or E)

    • Recover the funds

    • Close control
    3.
    The citizenship code is B

    Note:

    If taxpayer is deceased, apply first the rules specified in the If column of either Row 1 or 2 of this table to determine the taxpayer’s eligibility for EIP 1, 2, or 3.

    		 A questionable EIP1 lead was received, and:
    Form 1040 tax return was filed for tax year 2018 or 2019, or a return was filed through the non-filer portal with AGI of $1.00 and CC IRPTRO show W-2 income present
    Or
    A questionable EIP2 or 3 lead was received, and:
    Form 1040 tax return was filed for tax year 2019 or 2020, or a return was filed through the non-filer portal with AGI of $1.00 and CC IRPTRO show W-2 income present

    • Do not recover the funds

    • Close control

    Note:

    If funds are returned to the IRS without our consent, the taxpayer can claim the Recovery Rebate Credit when they file their 2020 individual tax return.
    4.
    The citizenship code is B

    Note:

    If taxpayer is deceased, apply first the rules specified in the If column of either Row 1 or 2 of this table to determine the taxpayer’s eligibility for EIP 1, 2, or 3.

    		 A questionable EIP1 lead was received, and:
    No Form 1040 tax return was filed for tax year 2018 or 2019, or a return was filed through the non-filer portal with AGI of $1.00 and CC IRPTRO show No W-2 income present.
    Or,
    A questionable EIP2 or 3 lead was received, and:
    No Form 1040 tax return was filed for tax year 2019 or 2020, or a return was filed through the non-filer portal with AGI of $1.00 and CC IRPTRO show No W-2 income present

    • Recover the funds

    • Close the control
    5.
    The citizenship code is C, D. or E

    Exception:

    If the citizenship code is Cand the lead involves a questionable EIP3 deposit, see Block 6 below to determine eligibility requirements.

    		 A questionable EIP1, 2, or 3 lead was received

    • Recover the funds

    • Close the control
    6.
    The Citizenship Code is C    		 A questionable EIP3 lead was received:
    Form 1040 tax return was filed for tax year 2019 or 2020, or a return was filed through the non-filer portal with AGI of $1.00 and CC IRPTRO show W-2 income present for 2019 or 2020.

    • Do not recover the funds

    • Close control
    7.
    The citizenship code is Blank per IDRS CC DDBKD and the return address is in a Freely Associated State (i.e., Federated States of Micronesia, Republic of the Marshall Islands, or Republic of Palau)    		 A questionable E1P1, 2 or 3 was received: Follow guidance in Block 3 or 4 depending on your research results to determine eligibility
    8.
    Return address is in Guam or the Federated States of Micronesia    		 The Lead Submission spreadsheet indicates in the Reason for Return field, individual already received a check from the Bank of Guam or similar verbiage

    • Request funds be returned

    • Input on IDRS CC TXMODA, TC 971 AC 850

    • Close the control

25.25.8.3.3 (06-21-2022)

BMF External Lead Procedures

  1. A BMF lead involves a questionable refund that contains an Employer Identification Number (EIN) as the TIN. When a BMF lead is received, take the following actions:

    1. Create the lead number if it wasn’t done during the External Lead mailbox process.
      BMF Lead Only - Add the letter B to the lead number created.
      Lead includes IMF and BMF Accounts - Create a separate lead for the IMF and BMF accounts. Cross reference in the LMS Comment field, the lead number created for each so they can be tied to the same source and spreadsheet.

      Note:

      The Lead submission spreadsheet should be saved to the lead folder for each lead created. Also, depending on whether the results being provided are IMF or BMF accounts, notate in the e-mail, "See Lead number XXXXXX XX for individual/business account results."

    2. Open a control base on IDRS 1481XX00001, activity code BMFBKLD

    3. Add history note: H,XXXXXX-XXB

    4. Send an e-mail to Entity Fabrication and copy the RIVO P&A POC (see the BMF External Lead Guide for POC name), BMF External Lead Guide. Include in the subject line, "External Lead BMF Referral, Lead number assigned - Do we request funds?" Add to the body of the e-mail, the TIN, tax period, financial institution’s reason for referral, and copies of all documents attached (i.e., checks, spreadsheet, etc.,)

      Reminder:

      The Entity Fabrication POC and the BMF IDT POC will both review the referral to determine if the entity was fabricated and/or IDT is involved.

      Exception:

      If the lead comes from CI or SBSE, bypass sending the referral to the Entity Fabrication mailbox. Also bypass them if confirmation is received that a check is stolen or ID theft. Instead send the Non-Bank Recovery Assistance script and an indemnification letter to the bank source to request for the funds to be recovered.

    5. Save the sent e-mail as a pdf in the lead folder as "BMF Referral mmddyy" and the reply to the e-mail as "BMF Referral Reply mmddyy" .

    6. Take the following actions based on the response received from the Entity Fabrication POC:
      Request Funds - Issue the indemnification letter and update the controls to BMFREQFUND 148X00002
      Valid/Do Not Request Funds - Do not issue an indemnification letter, update, and close control base to NOFNDSREQ. Also notify the bank funds will not be requested

      Reminder:

      If an indemnification letter is issued and no deposit is received after 45 days, send the 45 day follow up letter. If no deposit is received 15 days after the 45 day follow up letter is issued, close the control base, NOFNDSRTND.

25.25.8.4 (08-17-2022)

Processing External Lead Deposits

  1. Once notification is received that funds have been returned, export the Lead management System (LMS) spreadsheet, and review all information provided in the lead folder. Use of the EL IAT tool is mandatory when working deposits.

    Note:

    If the lead source came from CI or SBSE Collection personnel, notify them the amount of funds recovered.

    Exception:

    Work tool rejects manually.

    Caution:

    Use CMODE for the correct location when inputting a TERUP.

    Reminder:

    Review LMS spreadsheet to ensure deposit information is accurate and update if necessary.

    Reminder:

    Update the institution’s RTN if not present on the spreadsheet. Attempt to retrieve the number from the Electronic Fraud Detection System (EFDS) or Command Code (CC) IMFOBT. If the routing number is not available, input a zero in the field in LMS.

    Exception:

    Deposits with no x-ref lead number will need a lead number assigned, lead/deposit folder created, and an initial import to LMS.

    Create the lead number using the RIVO received date, service center number, and a sequence number as follows (MMDDYY sc xx)(sc= your service center and xx = sequence number). For example, 020216 89 04 = RIVO received a deposit, February 2, 2016, worked in Fresno and the sequence number assigned 04.

    Create the lead/deposit folder, for deposits with no existing lead number, using the naming convention: deposit number, financial institution name (Financial Contact Information Spreadsheet), and lead number (as described above). Save to the designated site folder.

  2. If the deposit information is incomplete, refer the lead deposit to the local POC to contact the institution for missing information.

    Reminder:

    Any additional e-mails/attachments received, save to the associated lead folder as a PDF.

    Note:

    If the institution response contains a statement that all available information is provided, do not contact the institution.

  3. Run the EL IAT tool with the deposit information.

    Reminder:

    If received funds are not an IRS refund, prepare a commingle memo to commingle the funds. Then notify the bank on how they can request for the funds to be returned (see the Return Procedures for Non IRS Refund Checks -IRM 25.25.8.4(3) script).
    -
    -

  4. Research the account for TC 971 AC 123 with MISC field "TPP RECOVERY." If present, do not conduct further research, post funds back to the account and suspend to 148XX00013 until TC 720 posts to the account.

    Reminder:

    Do not release accounts containing a TC 971 AC 123. Disposition to PS 30 once the recovered funds post. See IRM 25.25.8.6, Monitoring External Leads.

  5. Research the account for TC 971 AC 078, forgery indicator. If present, do not reissue refund.

  6. Review IDRS CC TXMOD for the tax period in question and ensure all open controls are not in "B" status. If an open control is found, contact the open control before taking any actions.

  7. Use the External Lead IAT tool to input a TC 971 AC 134, TC 971 AC 850, and the history item," DONOTRFUND" , if not already present on all invalid accounts. The EL IAT tool will update the control base on IDRS to, "C#,BKLDCKRECD,A,MISC
    148(XX)0000X,*" (X= 4 invalid, 7 valid), input CC ELP45, and/or commingled memo.

    Exception:

    For commingled funds, the only control base the tool will post to this account is BKLCOMNGLD.

    Note:

    Review the detail report from the EL IAT tool and confirm actions are on the same tax period. If the actions were taken on the incorrect tax period close the control with "BKLDERROR" and open a control on the appropriate tax period. Manually input any action that did not populate from the tool.

    Note:

    The External Lead TE has 15 working days to complete the CC ELP45 input, barring any delays or large leads.

  8. If the tool was unable to determine if the funds will be applied or remain in the commingled general ledger account, follow the table below to determine the next actions:

    Reminder:

    Leads with multiple accounts may have multiple scenarios. For example, you may have an invalid return, a valid return, and an account with commingled funds on the same lead/deposit. Do not prepare the commingled memo until all accounts associated to the lead/deposit have been resolved.

    If And Then
    1
    the funds received are between $1.01 and $4.99    		 the return is considered good

    • Input CC ELP45

      Caution:

      You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

      Note:

      Balance the ELP45/ commingled amounts to reflect total of deposit.

      Reminder:

      The amount of the transfer may not exceed the TC 846 amount.

    • Update/open control to "Cxx,BKLDCKRECD,A,MISC
      148XX00007"

    • Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

    • Input TC 972 AC 134 to reverse RIVO indicator.

      Reminder:

      If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134"

    • Change disposition in STARS to "DL"

    • Update LMS spreadsheet with results

    • Input a TC 290 .00 with a posting delay of 2 to release the refund to the TP

    • Close all RIVO controls

    • Notify POC that process is complete
    2
    the funds received are $1.00 or less    		 the return is considered good

    • Input CC ELP45

      Caution:

      You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

      Note:

      Balance ELP45/commingled amounts to reflect total of deposit.

      Reminder:

      The amount of the transfer may not exceed the TC 846 amount.

    • Update/open control to "Cxx,BKLDCKRECD,A,MISC
      148XX00007"

    • Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

    • Input TC 972 AC 134 to reverse RIVO indicator

      Reminder:

      If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134" .

    • Change disposition in STARS to "DL"

    • Input a TC 290 .00 with a posting delay of 2 and a priority code of 5 to post accruals

    • Close all RIVO controls

    • Update LMS spreadsheet with results

    • Notify POC that process is complete
    3
    the funds received are $4.99 or less    		 the return is considered bad

    • Update/close the control to "CXX,BKLCOMNGLD,C,MISC
      148XX00004"

    • Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

      Note:

      If the tax year is in retention it must first be brought back to Master File using CC IMFOLB.

      Reminder:

      This will be updated en masse after the entire lead/deposit is completed.

    • Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) BKLCOMNGLD " . If two years prior or older add "suspected IDT" to the note

    • If not already dispositioned in EFDS, disposition current processing year returns as appropriate

    • Update LMS spreadsheet with results

    • Create the Commingled Memo and save to the associated lead folder

      Reminder:

      For large deposits worked by more than one TE, create only one memo for the entire deposit.

    • Send e-mail to POC with notification that process is complete
    4 the account is dormant, in retention (refunds paid in calendar years prior to the current and prior calendar year) or the return is two years or older to the current processing year

    Note:

    DO NOT perform more research

    Reminder:

    Instructions in this row apply whether or not the Taxpayer Identification Number (TIN) owner is identified.

    Exception:

    If the account contains a TC 971 AC 123 with MISC field "TPP Recovery" , post the money to the designated account.

    		  

    • Update/close the control to "CXX,BKLCOMNGLD,C,MISC
      148XX00004"

    • Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

      Note:

      If the tax year is in retention it must first be brought back to Master File using CC IMFOLB.

      Reminder:

      This will be updated en masse after the entire lead/deposit is completed.

    • Update EFDS notes with" BKL deposit number lead number(lead number =MMDDYY XX) BKLCOMNGLD " . If two years prior or older add "suspected IDT" to the note

    • If not already dispositioned in EFDS, disposition current processing year returns as appropriate

    • Update LMS spreadsheet with results

    • Create the Commingled Memo and save to the associated lead folder

      Reminder:

      For large deposits worked by more than one TE, create only one memo for the entire deposit.

    • Send e-mail to POC with notification that process is complete
    5
    the return is considered bad    		 Account does not contain TC 841 with document code 48 in the DLN or TC 700 with document code 58 in the DLN

    • Input CC ELP45

      Caution:

      You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

      Note:

      Balance ELP45/commingled amounts to reflect total of deposit.

      Reminder:

      The amount of the transfer may not exceed the TC 846 amount.

    • Update/open control to "Cxx,BKLDCKRECD,A,MISC
      148XX00004"

    • Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

    • Update LMS spreadsheet with results

    • Notify POC that process is complete
    6
    the return is considered bad    		 Accounts contain TC 841 with document code 48 in the DLN or TC 700 with document code 58 in the DLN present on the account or
    refunds are unidentified, excess funds or commingled accounts

    • Update/close the control to "Cxx,BKLCOMNGLD,C,MISC
      148XX00004"

    • Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) BKL COMNGLD"

    • Input TC 971 AC 134 with MISC field "BKLD COMINGLED "

      Reminder:

      This will be updated en masse after the entire lead/deposit is completed.

    • Update LMS spreadsheet with results

    • Create the Commingled Memo and save to the associated lead folder

    • Send e-mail to POC with notification that process is complete
    7
    the return is valid    		  

    • Input CC ELP45

      Caution:

      You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

      Note:

      Balance ELP45/commingled amounts to reflect total of deposit.

      Reminder:

      The amount of the transfer may not exceed the TC 846 amount.

    • Update/open control to "Cxx,BKLDCKRECD,A,MISC
      148XX00007"

    • Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

    • Input TC 972 AC 134 to reverse RIVO indicator

      Reminder:

      If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134" .

    • Change disposition in STARS to "DL"

    • Update LMS spreadsheet with results

    • Notify POC that process is complete
    8
    cannot find a return for the TIN provided by the financial institution

    Note:

    Attempt to find a valid TIN. If valid TIN is found follow scenario in this if/then table.

    Exception:

    If multiple accounts on a deposit are not from an IRS refund notify your lead before proceeding

    		 Cannot allocate the money received

    • Place the TIN provided by the financial institution in the LMS TIN field

    • Open your control on the TIN provided by the financial institution for the most recent tax period to "Cxx,BKLCOMNGLD,C,MISC
      148XX00004,"

    • Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

      Reminder:

      This will be updated en masse after the entire lead/deposit is completed.

    • Update LMS spreadsheet with results

    • Create the Commingled Memo and save to the associated lead folder

    • Notify POC that the process is complete
    9
    the TIN is valid, but cannot find the tax period

    Note:

    Attempt to find the correct tax period. If the correct tax period is found, follow scenario in this if/then table.

    Exception:

    If multiple accounts on a deposit are not from an IRS refund notify your lead before proceeding

    		 Cannot allocate the money received

    • Open your control on the most recent tax year to "Cxx,BKLCOMNGLD,C,MISC
      148XX00004,"

    • Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

      Reminder:

      This will be updated en masse after the entire lead/deposit is completed.

    • Update LMS spreadsheet with results

    • Create the Commingled Memo and save to the associated lead folder

    • Send e-mail to POC with notification that process is complete
    10
    the return is considered good/bad    		 the response from the financial institution is no funds are available for return

    • Update/close the control to "NOFNDSAVLB,C"

    • Add a note to EFDS BKL Deposit number, Lead number and "no funds available"

    • Update LMS
    11
    the return is considered bad    		 after 60 days with no response from the bank

    • See the Table in IRM 25.25.8.6(1), Monitoring External Leads before taking the actions in the bullets below

    • Update/close the control to "NOFNDSRTND,C"

    • Add a note to EFDS BKL Deposit number , Lead number and "no funds returned"

    • Update LMS
    12
    the return is considered good/bad    		 the TIN is an Internal Revenue Service Number (IRSN), see IRM 3.21.263.5.5, Internal Revenue Service Number (IRSN), for more IRSN information and the module contains a TC 848 or TC 849

    • Update/close the control to "Cxx,BKLCOMNGLD,C,MISC
      148XX00004"

      Reminder:

      DO NOT post anything to the IRSN, open the control and take all actions on the SSN’

    • Update EFDS notes with" BKL deposit number lead number (lead number =MMDDYY XX) BKL COMNGLD"

    • Input TC 971 AC 134 with MISC field "BKLD COMINGLED "

      Reminder:

      This will be updated en masse after the entire lead/deposit is completed.

    • Update LMS spreadsheet with results

    • Create the Commingled Memo and save to the associated lead folder

    • Send e-mail to POC with notification that process is complete
    13
    BMF Deposit Received    		  

    • Prepare Form 3245 voucher for the amount returned for each account separately

    • Save the voucher in the lead folder as the last four digits of EIN, Name Control and tax year. Also include the Trace ID (TID) - see BMF External Lead Guide

    • Update IDRS control base to:
      Bad Returns - BKL3245BMF 1481500004
      Valid Returns - BKL3245BMF 1481500007
      Commingled Funds - BMFCOMNGLD, use the same control number as above if Bad or Valid

      Note:

      See IMF conditions in this table to determine if the BMF funds recovered must be commingled.

      Exception:

      If the BMF Lead involves a dormant return or one that is two years or older as in row 4 above, these returns must go to the RIVO P&A staff for review and determination.

    • Input TC 570 on IDRS and History item DONOTRFUND (Only if Bad)

    • Close all controls assigned to RIVO once the TC 720 post to the account.

    • Upon the completion of the deposit or no funds to be returned, send an e-mail to theEntity Fabrication mailbox, with a copy to RIVO P&A point of contact (see SERP portal, BMF External Lead Guide for POC name).

    • Include in the subject line, External Lead BMF Referral Lead Closed.

    • Include in the e-mail body, the Lead number, EIN, MFT, tax year, and an explanation that the TC 720 has posted. Also advise the lead was closed and any other closing actions the

      Note:

      If the funds received was for a valid return, the TE will release it by inputting a TC 290 .00, and then notify Entity Fabrication the funds were released. Include in the e-mail body all of the items stated in the bullet above

      .

    14
    Deposit recovered is from an EIP 1, 2 or 3 and regardless of the eligibility determination(i.e., IDT, Non-IDT, Decedent)    		  

    • Input CC ELP45 to post the funds

    • Close all controls

      Caution:

      Once the payment posts to the account (i.e. TC 720, 841)DO Not take any additional actions to adjust the account, including releasing the credit. Programming has been implemented to reconcile the posted credit. The taxpayer, if eligible will need to claim the Recovery Rebate Credit on their 2020 tax return to recover the funds.

25.25.8.4.1 (09-12-2022)

Reversal/Return of Recovered Funds

  1. Research the lead/deposit to determine if the deposit was applied to individual accounts or commingled in the general ledger account. Follow the table below:

    If And Then
    1
    Recovered funds submitted in error or return of funds requested by financial institution    		 Commingled funds applied to the 4971 General ledger account or funds applied to the 6801 (Excess) account

    Note:

    Funds are applied to the 6801 (Excess) account two years after the date of deposit.

    • Print documentation from the financial institution requesting the return of the recovered funds and save to the lead folder

    • Documentation from the financial institution must include:

      • financial institution’s EIN

      • physical address

      • financial institution’s POC

      • lead #

      • amount requested

      • all associated TINs with full names of the taxpayers

      • reason for the return request

      Reminder:

      Contact the financial institution when required information is missing.

    • Prepare Form 3753, Manual Refund Posting Voucher with the appropriate ledger account
    2
    Recovered funds submitted in error or return of funds requested by financial institution    		 funds applied to an individual account

    • Prepare and save in the lead/deposit folder the Form 3809, Miscellaneous Adjustment Voucher, to debit the taxpayer’s individual account and credit the 4971, General Ledger account

    • Create/revise the commingled memo and then save to the lead folder

    • Open IDRS control
      "C#,PND722,M,MISC"
      "148XX00011,*"

      After TC 722 posts to the account:

    • Close IDRS control with, "Cxx,722POSTED,C,MISC"

    • Prepare Manual Refund Form 3753 and all required attachments, using the Employer Identification Number (EIN) of the financial institution requesting the funds out of the correct general ledger account. See IRM 3.17.79.3.1, General Ledger Account - Types of Refunds.

    • Save the signed Form 3753 in the lead/deposit folder

    • Route forms to Manual Refunds per local procedures
    3
    An inquiry/referral received after deposit resolution    		 a valid return and commingled funds applied to the 4971 General ledger account or funds were applied to the 6801 (Excess) account

    Note:

    Funds are applied to the 6801 (Excess) account two years after the date of deposit.

    • Input CC ELP45

      Caution:

      You must CMODE to the deposit location to use this CC. This is based on the credit gateway information.

      Exception:

      If funds are being moved to an EIN, prepare, print and save in lead/deposit folder the Form 3245, Posting Voucher - Refund Cancellation or Repayment, to credit the taxpayer’s individual account and debit the appropriate General Ledger account.

    • Revise the commingled memo to reduce the commingled amount by the amount being placed on the taxpayer’s account and save to the lead folder

    • Open IDRS control
      "C#,PND720,M,MISC"
      "148XX00007,*"

      Note:

      This is only required when moving funds to an EIN.

    • Update EFDS notes with the amount of funds being applied to the taxpayer’s account

    • If the return is in STARS, update the disposition to "DL" for STARS removal
    4
    An inquiry/referral received after deposit resolution    		 A valid return and commingled funds are applied to the 4971 General ledger account or to the 6801 (Excess) account and there is not enough available to cover the TC 846 amount.

    Note:

    Funds are applied to the 6801 (Excess) account two years after the date of deposit.

    • Input CC ELP45

      Note:

      Credit the taxpayer’s individual account up to the available amount and debit the appropriate General Ledger account.

      Caution:

      You must CMODE to the deposit location to use this CC.

      Exception:

      If funds are being moved to an EIN, prepare, print and save in lead/deposit folder the Form 3245, Posting Voucher - Refund Cancellation or Repayment, to credit the taxpayer’s individual account and debit the appropriate General Ledger account. Only credit the taxpayer’s account to the extent of available funds and then debit the appropriate General Ledger Account.

    • Revise the commingled memo to reduce the commingled amount by the amount being placed on the taxpayer’s account and save to the lead folder

    • Open IDRS control
      "C#,PND720,M,MISC"
      "148XX00007,*"

      Note:

      This is only required when moving funds to an EIN

    • Update EFDS notes with the amount of funds being applied to the taxpayer’s account

    • If the return is in STARS, update the disposition to "DL" for STARS removal
    5
    An inquiry/referral received after deposit resolution    		 A valid return and funds applied to the taxpayer’s account

    • Release the refund

    • Update EFDS notes as applicable

    • Remove from STARS, by updating the disposition to "DL"

    • Enter a reason in STARS or EFDS Notes when requesting for a return’s deletion from STARS

    • Close all RIVO controls
25.25.8.5 (06-22-2021)

External Lead Procedures for Automated Clearing House (ACH) Deposits

  1. Financial Institution Automated Clearing House (ACH)

    1. Screen the return, if valid, "REFILE" and release the refund.

    2. If questionable/suspicious, input a CC NOREFP (before return posts or same day) and send the return for verification or verify using CC IRPTR, if available for verification. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Open IDRS control base to "C#,BKLDACHREV,A,MISC 148XX00005,* " ,if not already present on the module.

    4. Close the "PRFZ" control base.

    5. Input a TC 971 AC 134 on CC TXMOD to show RIVO activity.

    6. If the return is not valid, add a history item to CC TXMOD, "DONOTRFUND" .

    7. Close the control as "841POSTED" when the ACH reversal post. If ACH has not posted, update the control to "148xx00004/7 " as applicable.

    8. Monitor for credit posting, and manually add to STARS. If the return is already dispositioned and in the referral process, do not change the disposition unless the return is in a reject status and needs to be corrected (CE OR CA). See IRM 25.25.13-3, Scheme Tracking and Referral System (STARS) Disposition Definitions.

    9. Update the 148XX00005 control to either 148XX00004 or 148XX00007, as applicable.

    10. If prior year (PY) in STARS, input on the manual referral spreadsheet and close the IDRS control base.

    11. Update Lead Management System.

25.25.8.6 (06-21-2022)

Monitoring External Leads

  1. Point of Contact (POC) monitors the lead to ensure that a deposit is received from a financial institution within 45 days from the date the original indemnification letter was issued. If 45 days pass and no funds were received, issue a follow up Indemnification Letter to the institution. If no funds or response is received after 15 days from the issuance of the follow-up Indemnification Letter, see the table below before closing the lead as no funds returned.

    Note:

    Included in the table, guidance for banks that respond, "funds were returned"

    .

    Note:

    Save the follow-up notices in the lead folder. Update Lead Management System (LMS).

    Reminder:

    If sending a follow-up letter ensure the original indemnification letter date is not changed in LMS.

    If Then
    1. Bank responds, payment was returned

    • Research via IDRS CC TXMODA, a sample of the TINs from the lead to verify if the payment posted matches the amount specified on the Lead Submission spreadsheet

    • If payment is found, check the Remittance Transaction Research (RTR) application to assist with locating the payment and for reconciling the account

    • If payment cannot be located, consult first with the team Lead or Manager before closing the lead as no funds returned
    2. No response from bank nor funds received

    • Research via IDRS CC TXMODA a sample of the TINs from the lead to verify if the payment posted matches the amount specified on the Lead Submission spreadsheet

    • If payment is found, check the Remittance Transaction Research (RTR) application to assist with locating the payment and for reconciling the account

    • If no payment is found, close the lead as no funds returned

  2. The local POC monitors the weekly external lead age listing. Follow the table below for appropriate actions.

    Reminder:

    Resolve age listing in oldest received date order.

    If And Then
    1
    control number is 148XX00001    		 is 10 calendar days or older

    • Review the account for actions not taken

    • Update and/or /close the control base
    2
    control number is 148XX00002    		 is 60 calendar days or older

    • Review account to determine if TC 720 is present

      If not present:

    • Close the control base in status "C" with activity "NOFNDSRTND"

      If present:

    • Determine if return is good, bad or Identity Theft (IDT)

      If good:

    • Release refund

    • Update disposition to "DL" to remove from STARS. Enter a reason in the return's STARS or EFDS notes when requesting its deletion from STARS

      If bad and return is current processing year:

    • Push to STARS.

    • Update category and disposition per IRM 25.25.13-4, STARS Category Definitions and IRM 25.25.13-3, STARS Disposition Definitions

      If bad and prior processing year:

    • Complete Mass Push Template

      Reminder:

      If already in STARS , update to the appropriate category and disposition.

      If IDT and the return is current processing year:

    • Push to STARS

      Reminder:

      If completed en masse, update to "CAT 1" . If completed individually, update to "CAT 7 MR" . if multiple TC 846 or the posting of the TC 720 occurs after the account adjustment, refer to IRM 25.25.5-1 , Triage Procedures, if account requires adjustment.

      If IDT and the return is prior processing year:

    • Complete Mass Push Template using "CAT 1"

    • Close the control base
    3
    control number is 148XX00003    		 is 60 calendar days or older
    Follow IRM 25.25.8.11, Centralized Check Process (CCP)
    4
    control number is 148XX00004    		 there is a credit balance and TC 720 is present

    If current processing year:

    • Push to STARS

    • Update category and disposition per IRM 25.25.13-4, STARS Category Definitions and IRM 25.25.13-3, STARS Disposition Definitions

      Note:

      Manually refer to the appropriate workstream using the Manual Referral Spreadsheet if the return does not meet the auto-referral categories.

      If prior processing year:

    • Complete Mass Push Template and Manual Referral Template

      Reminder:

      If already in STARS, update to the appropriate category and disposition.

      If IDT and the return is current processing year:

    • Push to STARS

      Reminder:

      If completed en masse, update to "CAT 1" . If completed individually, refer to IRM 25.25.5-1, Triage Procedures

      If IDT and the return is prior processing year:

    • Complete Mass Push Template using "CAT 1"

    • Close the control as "Cxx,720POSTED,C,MISC"
    5
    control number is 148XX00004    		 a TC 720 is not present, and it is 10 calendar days or more from the date the CC ELP45 was input

    • Research the account to determine why TC 720 not posted

    • Take appropriate actions to resolve

    • Update/close the control as applicable
    6
    control number is 148XX00005    		 there is a TC 841 present for 10 days or more

    • Determine if return is good, bad or IDT

      If good:

    • Release refund

    • Update disposition to "DL" to remove from STARS

    • Enter a reason in the return's STARS or EFDS Notes when requesting its deletion from STARS

      If bad and return is current processing year:

    • Push to STARS

    • Update category and disposition per IRM 25.25.13-4, STARS Category Definitions and IRM 25.25.13-3, STARS Disposition Definitions

      If bad and prior processing year:

    • Complete Mass Push Template and Manual Referral Template

      Reminder:

      If already in STARS, update to the appropriate category and disposition.

      If IDT and the return is current processing year:

    • Push to STARS

      Reminder:

      If completed en masse, update to "CAT 1. " If completed individually, refer to IRM 25.25.5-1, Triage Procedures

      If IDT and the return is prior processing year:

    • Complete Mass Push Template using "CAT 1"

    • Close the control base as "841POSTED"
    7
    control number is 148XX00005    		 there is no credit balance and is 60 calendar days or older Close the control base as "Cxx,RFNDNOTHLD,C,MISC"
    8
    control number is 148XX00007    		 there is a credit balance and TC 720 is present

    • Re-file the return and release the refund

    • Update disposition to "DL" to remove from STARS

    • Enter in the return's STARS or EFDS notes when requesting its deletion from STARS

      Exception:

      Do Not Release refunds held by another function’s freeze code. When this occurs reverse RIVO marker by inputting TC 972 AC 134.

    • Close the control base
    9
    control number is 148XX00007    		 there is a credit balance and TC 720 is not present and is 10 calendar days or older from the CC ELP45 date

    • Research the account to determine why TC 720 has not posted

    • Take appropriate actions to resolve

    • Update/close the control as applicable
    10
    control number is 148XX00009    		 is 10 calendar days or older

    • Determine if return is in STARS

      If in STARS:

    • Update disposition to "CC" or "CL"

    • Close the monitoring control

      If not in STARS:

    • Research to determine why the return is not in STARS

    • Update/close the control base
    11
    control number is 148XX00011    		 the TC 722 is present Follow IRM 25.25.8.4.1, box 2 after TC 722 posts, Reversal/Return of Recovered Funds
    12
    control number is 148XX00011    		 the TC722/TC820 is not present and is 60 calendar days or older from preparation date of the accounting form

    • Research the account to determine why TC 722 or TC 820 is not posted

    • Take appropriate actions to resolve

    • Update/close the control as applicable
    13
    control number is 148XX00013

    Note:

    This is an account that contains a TC 971 AC 123 MISC "TPP Recovery"

    		 the TC 720 is posted

    • Disposition the return to Ace Adjustments (PS 30)

    • Input an EFDS return note of "RIVO EL IDT BKLD"

    • Close all RIVO controls
    14
    control number is 148XX00013

    Note:

    This is an account that contains a TC 971 AC 123 MISC "TPP Recovery"

    		 the TC 720 is not posted, and it is 10 calendar days or older from the CC ELP45 date

    • Research the account to determine why TC 720 has not posted

    • Take appropriate actions to resolve

    • Update/close the control as applicable
    15
    control number is 148XX00014    		 the TC 841 is posted

    • Disposition the return to Ace/ Adjustments (PS 30)

    • Input an EFDS return note of "RIVO EL IDT BKLD"

    • Close all RIVO controls
    16
    control number is 148XX00014    		 the TC 841 is not posted, and it is 60 calendar days or older from the F stop request date

    • Research the account to determine why TC 841 has not posted

    • Take appropriate actions to resolve

    • Update/close the control as applicable
    17
    control number is 148XX00017    		 the TC 841 is posted

    • Reissue check to the good taxpayer

    • If account is in STARS, remove from STARS, by updating disposition to "DL"

    • Enter a reason in the return's STARS or EFDS Notes when requesting its deletion from STARS

    • Close all RIVO controls
    18
    control number is 148XX00017    		 the TC 841 is not posted, and it is 60 calendar days or older from the F stop date requested

    • Research the account to determine why TC 841 has not posted

    • Take appropriate actions to resolve

    • Update/close the control as applicable

25.25.8.6.1 (04-02-2021)

Criteria for Updating STARS Categories and Dispositions

  1. Use the table below to update STARS categories and dispositions.

    If Then
    -A freeze is present and/or AM IDRS control base on the account such as: DUPF, IDT1, IDT3, XRET, XIVO, MXEN, IDS1, IDS3, IDT8, IDT9, IDS9, SCRM and SSA2 Update STARS to "CAT 5 CL" .
    Return meets IDT criteria:

    • previous IDT marker (TC 971 AC 5XX)

    • date of death present (DOD)

    • date of birth (DOB) 1940 and prior or 2001 and after

    • If completed en masse, update to "CAT 1"

    • If completed individually, refer to IRM 25.25.5-1, Triage Procedures

  2. See the table in IRM 25.25.13-3, Scheme Tracking and Referral System (STARS) Disposition Definitions, for a description of the STARS disposition status codes and IRM 25.25.13-4, Scheme Tracking and Referral System (STARS) Category Definitions for each category definition.

25.25.8.7 (04-02-2021)

Responding to Taxpayer Inquiries

  1. For non-RIVO employees receiving taxpayer inquiries follow the procedures outlined below.

  2. The caller states the bank returned their refund to the IRS, see Exhibit 25.25.8-2, External Lead Involvement Indicators, and follow the chart below:

    Note:

    Please contact the Point of Contact on any External Lead control before taking any actions on the account. See External Lead Point of Contact.

    If And Then
    1
    The account contains an open control to RIVO.    		 The control base activity field is one of the following:

    • "BKLD"

    • "REQFUNDS"


    AND the control base assignment number is one of the following:

    • 148XX00001

    • 148XX00002

    • Update the Accounts Management System (AMS) notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

    • Advise the caller that the return and refund are under review, and it may take up to 90 days from the date of the control base to complete the review and either issue the refund or send a letter regarding the review.

    • If the account shows no action taken in the last 90 days, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - RICS RIVO - External Lead. Advise the taxpayer to allow 60 days for a response.
    2
    The account contains an open control to RIVO.    		 The control base activity field is one of the following:

    • "BKLDCKRECD"

    • "BKLDACHREV"


    AND the control base assignment number is one of the following:

    • 148XX00004

    • 148XX00005

    • Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

    • Advise the caller that the return and refund are under review and it may take up to 10 weeks from the date of the call to complete the review and either issue the refund or send a letter regarding the review.

    • If the account shows no action in the last 10 weeks, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead" . Advise the taxpayer to allow 60 days for a response.

    Exception:

    Identity Theft Victim Assistance ( IDTVA) Employees may make IDRS adjustments as needed after contacting the External Leads POC to verify if the financial institution returned the funds.

    Exception:

    Do not initiate contact on "BKLCOMNGLD" , close the control base.
    3
    The account contains an open control to RIVO.    		 The control base activity field is one of the following:

    • "BKLDCKRECD"

    • "BKLDACHREV"

    AND the module shows control base assignment number is one of the following:

    • 148XX00004

    • 148XX00005

    AND the module shows a posted TC 720 or TC 841

    • Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

    • Advise the caller that the return and refund are under review and it may take up to 10 weeks from the date of the call to complete the review and either issue the refund or send a letter regarding the review.

    • If the account shows no action taken in the last 10 weeks, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - RICS RIVO - External Lead. Advise the taxpayer to allow 60 days for a response.

    Exception:

    ID Theft Employees may make IDRS adjustments as needed.
    4
    The account contains an open control to RIVO.    		 The control base activity field contains the following:

    • "VALID150"


    AND the control base assignment number is the following:

    • 148XX00007

    • Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

    • If the TC 720/ TC 841 is not posted, advise the caller that the review of the return and refund is complete and to allow 10 weeks for the refund issue.

    • If the TC 720/ TC 841 is posted, advise the caller that the review of the return and refund is completed and to allow 6 weeks from the TC 720 /TC 841 cycle date for the refund to be issued.

    • If more than 10 weeks passed and the refund has not been issued since the initial call, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead" . Advise the taxpayer to allow 60 days for a response.
    5
    The account contains a closed RIVO control base.    		 The control base activity field is "BKLCOMNGLD" , and the control base assignment number is 148XX00004 or 148XX00007.

    • Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

    • Advise the caller that the return and refund are under review, and it may take up to 6 weeks from the date of the call to receive a letter regarding the review.

    • Prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead" . Advise the taxpayer to allow 60 days for a response.
    6
    The taxpayer states the financial institution has advised them that IRS requested the funds back.    		 The control base activity field is "NOFNDSAVLB" or "NOFNDSRTND" and the control base assignment number is 148XX00004.

    • IRS never received any funds from the financial institution. Advise the caller to contact their financial institution regarding the refund.


    If the taxpayer states, they have already spoken to the bank and the bank referred the taxpayer back to IRS then:

    • Submit a Form e-4442 to "RICS RIVO EX LDS" . Advise the taxpayer to allow 60 days for a response.
    7
    The account contains a closed RIVO control base.    		 The closed control base activity field is "841LOST" or "ACHLOST" and the control base assignment number was 148XX00005, and there are no credits held on the account.

    • The financial institution returned the funds as a direct deposit reversal; however, the refund is released via a paper check.

    • Follow normal refund inquiry procedures per IRM 21.4.2, Refund Trace and Limited Payability.
    8
    The account contains an IDRS history item such as "BKLD DO NOT RELEASE" or "BKLD DO NOT REFUND"    		 The account has a TC 720 or TC 841 credit with a TC 971 AC 134 or a TC 971 AC 199 RIVO freeze code. Refer to the last closed RIVO control base and follow the instructions in this "If and Then " chart.
    9
    The taxpayer states the financial institution has advised them that IRS requested the funds back.    		 No open or closed RIVO control or indications of RIVO activity.

    • Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

    • Advise the caller to allow 90 days from the date of the call to either receive the refund or a letter regarding the review.

    • If more than 7 days since the bank notified the taxpayer that the refund was returned to the IRS, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead" . Advise the taxpayer to allow 60 days for a response.

  3. If the external lead control is over 90 days and the taxpayer did not receive their refund or notification, submit a Form e-4442, Inquiry Referral, to RIVO using the referral category, RICS RIVO - External Lead.

  4. When a return preparer who directed current year tax refunds into their account calls stating the bank informed them that they returned the deposited funds to IRS due to multiple refunds or a name mismatch, take the following action:

    If And Then
    The caller claims to be a tax return preparer who directed current year tax refunds into their account Bank has told caller that the deposited refunds were returned to the IRS due to multiple refunds or name mismatch

    1. Submit the following information via e-mail to the *RPO Referrals mailbox. Subject line of: "Attempt to Direct Deposit Client Refund to Return Preparer Bank Account" .

    2. Include a brief explanation of why the preparer called and the bullet items below:

      Example:

      Return preparer called because the bank sent the refund back to IRS instead of depositing the refund into the preparer’s bank account.

      • Preparer name

      • Preparer SSN number

      • Preparer PTIN

      • Preparer Firm EIN number (if available)

      • Preparer phone number

      • Bank routing number and account number

    3. Inform the caller that taxpayers must direct deposit tax refunds to accounts in their name. This may explain why the bank returned the funds to the IRS. No exception to these rules exists for a tax return preparer.

      Note:

      The instructions for both Form 1040, U.S. Individual Income Tax Return, and Form 8888, Allocation of Refund (Including Savings Bond Purchases), instruct taxpayers not to request a deposit of their refund to an account that is not in their name, such as their tax preparer’s account.

    4. Do not provide any specific information about a taxpayer’s account unless the caller has a power of attorney to receive it.

25.25.8.8 (01-19-2021)

Bureau of Fiscal Services (BFS) Credit Gateway

  1. The External Leads Program, supported and managed by the IRS Return Integrity & Verification Operation (RIVO), works in conjunction with IRS Submission Processing (SP) to receive, screen and validate leads, and request the recovery of refunds to reconcile accounts. Financial institutions can return refunds associated with leads electronically, rather than a paper check, via Bureau of the Fiscal Service (BFS) Credit Gateway.

  2. Sources must provide a spreadsheet containing personally identifiable information (PII) that helps the IRS identify the source of the funds received as well as to ensure accurate processing of them.

  3. When working these leads, conduct complete and accurate research on them and then notify the lead source the amount to return to the IRS.

  4. RIVO will provide the source with a Credit Gateway Account Locator Number (ALC) for the submission of funds. See table in (7) below.

  5. RIVO will then receive via the efleads@irs.gov mailbox, a batch file of funds with the locked down accounts, along with an e-mail including the Lead Number(s).

  6. Any sources using the BFS Credit Gateway should be provided fund transfer instructions below for the site working the inventory. The accounting POC for the site should be included in the instructions.

  7. Update Lead Management System as required.

  8. To initiate the fund transfer, use the following account information:

    Kansas City, MO
    ALC: 20090900
    Standard Entry Class (SEC) code: CCD
    Transaction Type: 22
    Receiving ABA routing number: 051036706
    DFI account number: 82009090001
    Receiving Company Information: Institution Name and Lead# (limit 22 characters) (Lead# = mmddyy seq# of lead, i.e., SunTrust #101414 39)
    Tax Class: 20X0903

25.25.8.9 (06-21-2022)

External Offset Leads (State and Federal Agencies)

  1. External Offset Leads primarily include the following:

    • The Office of Child Support (OCSE)

    • State Revenue Departments

  2. The Office of Child Support Enforcement (OCSE) receives and manages various state’s child support Treasury Offset Program (TOP) offset referrals. Questionable offsets are identified by states who run their own filters to determine if an overpayment is suspicious. In addition, an agency may also receive information from a taxpayer stating they did not work during the current year or file the tax return that generated the offset. OCSE load these leads to the Health and Human Services (HHS) website portal. Then, specific IRS personnel with access to the portal receive an e-mail from HHS that a new file was uploaded for review.

    Note:

    Fraud Referral and Evaluation Analysts (FRE), during phase 1, retrieve the cases referred from the portal and then conduct the research using various batch tools and databases to determine if the offset should be reversed. See IRM 25.25.12.9.7, Office of Child Support Enforcement (OCSE) for more details. Those cases not meeting FRE’s criteria will be assigned to RIVO OCSE team to work in phase two of this process. The guidance, therefore, starting with paragraph 3 of this subsection, is specific to RIVO TEs assigned to work the fallout from phase 1 cases referred.


    The IRS usually receives the following information:

    • Trace number

    • State referring case

    • Debtor first and last name

    • Debtor Taxpayer Identification Number (TIN)

    • Offset amount/date

    • Notes column(some states use the field to disclose the reason for referral)

  3. The IRS works directly with the OCSE to provide a response to the states on returning questionable offsets referred.
    Complete accurate research on referred OCSE accounts is critical to the success of the program and to the various state’s appropriate disbursement of TOP offsets from federal tax refunds. The IRS’ response on referred cases directly guides the states on whether to release offset referred or hold pending reversal request(s) from IRS or BFS. The assigned Examiner must consider the following when reaching a determination:

    • All related transactions on the account

    • The validity of corresponding claims

    • Any prior actions taken by the IRS or BFS, to include full or partial reversal, and funds reissued

    • The offset amount available

    • Where to refer/treat an invalid claim

    Note:

    The offset reversal leads process requires that the Tax Examiner review the entire corresponding module(s) for all items within RIVO scope. This includes all relevant entity research such as IDRS CC FTBOL, which is only updated once a year. Therefore, when reviewing this data, also review the FTBOL FY20XX Spreadsheet to determine if updated incarceration/release information is found when conducting research. Research should also include date of death and module transactions indicating GATT. See the following references IRM 25.25.9.4, General Agreement on Tariffs and Trade (GATT) Returns, Frivolous Claims, see IRM 25.25.10-1, Frivolous Arguments, inflated income and/or withholding, see IRM 25.25.2.3, Command Code (CC) IRPTR Return Verification During the Screening Process, identity theft, Unallowables, see IRM 4.19.15.15, Unallowable Code (UA) Program, non-eligible credits (see Form 1040 instructions) and dishonored/duplicate/erroneous payment refund issues.


    Tax Examiner determinations include the following

    1. "NO" - RIVO will not be requesting the return of funds

    2. "YES" - The entire referred offset is no longer available for disbursement
      For all "YES" responses, TEs must indicate either taxpayer Fraud, IDT, Inj Sp or Other as appropriate. Additional comments should be entered in the Remarks field as needed

    3. "PIR" - Prior actions by IRS has already reversed the offset in full and therefore is no longer available for disbursement
      For all PIR accounts, TEs must indicate either taxpayer Fraud, IDT, Inj Sp, or Other as appropriate. Additional comments should be entered in the Remarks field as needed.

    4. BFS - TC 899(s) have posted to the account totaling the entire amount of the TC 898 and as a result, the offset is unavailable for disbursement

     

    Note:

    Prior to IRP being considered fully loaded, if the Examiner, after lookback (see IRM 25.25.2.2.1 (2) #s 8-9, Data Mining Screening Tree) is unable to decide, the return will be submitted through the RIVO verification process. An interim response of "M" will be recorded in LMS and the IDOC(s) will be dispositioned as appropriate to “Verify” in EFDS. The return DLN will be captured in the "Remarks "field.

    Reminder:

    Do Not suspend a case which has been determined to be Identity Theft (IDT) or where the entire referred offset is no longer available for reversal (see IRM 21.4.6.4.2.11, Netting TOP Offsets and Reversals)

  4. Use batch tools to complete the research to determine the offset tax period.

  5. Input the TC 971 AC 134 with MISC "BKLD OFFSET" on all receipts to identify RIVO External Lead involvement.

    Note:

    The TC 971 AC 134 may be input en masse using the automated GII tools.

    Reminder:

    Ensure the name control is accurate, mismatches will require re-submission after correction or a manual input.

  6. If the batch process is unable to verify the return against CC IRPTR due to the presence of Schedule C or other "unverifiable" data, including TIN and/or tax modules that cannot be located, the case will be referred to the External Lead team to work. Research will include any identity theft markers, including TC 971 AC 125, and EFDS notes and "Compromised IRP Data - Do Not Release Based on IRP" . ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    The External Lead Tax Examiner (TE) will identify the corresponding TIN and tax period. Thereafter, review the corresponding tax return filing(s) and tax module(s), including netting the referred TOP offset (see IRM 21.4.6.4.2.11 , Netting TOP Offsets and Reversals).

  7. After researching and reviewing the corresponding filing(s) and module(s), follow the If and Then chart below to reach a determination, and to resolve the assigned account(s). The chart provides the most encountered scenarios. If the scenario is not covered, consult your Lead for guidance.

    Caution:

    You cannot reverse a TOP offset for an amount greater than what remains available. If the proposed deficiency exceeds the available remaining balance of the referred offset, and there are other TOP offsets on the module with funds available, see the tables in paragraph 10 below before inputting any return adjustments or TOP reversals.

    Caution:

    Do not increase refundable credits. Refundable credits must be equal to or less than the originally claimed amount. The IRS has no authority to increase refundable credits without an amended return or claim from the taxpayer.

    If And Then
    1
    TOP Offset, regardless of age, validity, Agency, or Sub-Agency Code    		 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Response is" No"

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET"

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

    • Close all RIVO control bases
    2
    TOP Offset, regardless of Agency or Sub-Agency Code    		 more than 5 years 11 months from the offset date and you determine that the return is NOT valid within RIVO scope Contact the TOP Liaison to determine the availability of funds

    Funds Available

    • The response will be "Yes"

    • Update IDRS refund TIN and Tax Period in LMS as appropriate

      Note:

      The offset cannot be reversed via TC 290 Action Code (AC) 766. A manual reversal must be requested through the TOP Liaison via the Manual TOP Offset Reversal Request form.
      See boxes below for required updates to IDRS and the OSRL Lead Management System database.



    No Funds Available

    • Response is "No"

    • Notate "Late Lead" in OSRL Remarks

    • Update IDRS refund TIN and Tax Period in LMS as appropriate
    3
    TOP Offset, regardless of age, validity, Agency, or Sub-Agency Code    		 There is a posted or pending freeze indicating Exam, Frivolous Filer Program (FRP), Criminal Investigations or Duplicate/Amended return

    Exception:

    If a -E Freeze and TC 810 with a Responsibility Code 4 is posted to the module, see IRM 25.25.8.3 Processing External Lead, Row 10-12, for the appropriate guidance.

    • Response is" No"

    • Notate LMS remarks "FLEAZ"

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET"

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

    • Close all RIVO control bases
    4
    Return is determined to be valid per tolerances established in IRM 25.25.2.2.1(6) ,Data Mining Screening Tree and there is no significant underreporting at or above Exam criteria, see IRM 4.19, Liability Determination    		 There are no GATT, Frivolous Claim, Unallowable or dishonored/duplicate/erroneous payment/refund concerns as discussed in the Note in paragraph 3 above

    • Response is "No"

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Close all RIVO control bases
    5
    Return is determined to be invalid per tolerances established in IRM 25.25.2.2.1(6), Data Mining Screening Tree    		 Adjustment would result in an increase or the same amount refund

    • Response is "No"

    • Notate in OSRL and LMS "Increased Refund" or "No change to Refund"

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Close all RIVO control bases
    5a
    Same condition as 5    		 Adjustment would result in a decreased refund,

    • Response is "Yes"

    • Indicate in OSRL LMS, "Fraud" and enter the offset reversal amount

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input/Update EFDS & AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS); Select "Refund Offset" issue

    • Refundable credits to be adjusted:

      1. Refer on OCSE manual referral to AQC spreadsheet with AMS 1040X Worksheet, and Notate EFDS as appropriate

      2. Send to scheme and update Category as appropriate

    • No Refundable credits to be adjusted:

      1. Send to WOW (manual referral or systemic)

      2. Send to scheme and update Category as appropriate
    6
    Agency Code 02/NON-TANF    		 150 days or more have passed from the offset date

    • Response is "No"

    • Notate “late lead” in the Remarks field of LMS

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Close all RIVO control bases
    7
    Referred TOP offset is fully reversed by TC 290 AC 766(s) and/or TOP Manual Reversal TC 700(s)    		  

    • Response is "PIR"

    • Indicate "Fraud" , "IDT" ," Inj Sp" , or "Other" as appropriate per your review. Additional Remarks needed should be entered in the Remarks field of the OSRL LMS database

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

    • Close all RIVO control bases
    8
    Referred TOP offset is fully reversed by TC(s) 899(s)    		  

    • Response is "BFS"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

    • Close all RIVO control bases
    9
    Referred TOP offset is fully reversed by a combination of TC 290/766 or 700 AND TC 899(s)    		  

    • Response is "Yes"

    • Indicate "Fraud" , "IDT" ," Inj Sp" , or "Other" as appropriate per your review

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Enter "0.01" as the offset reversal amount

    • Notate "BFS/PIR" in the Remarks field of the OSRL LMS

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      This is done en masse on a regular basis using automated GII tools.

    • Close all RIVO control bases
    10
    A portion (less than the entirety) of the referred TOP offset has been reversed by TC 290/766 or 700 and/or TC 899    		 You determine the return is valid within RIVO scope and there are no items of interest as discussed above in #3 REMINDER.

    • Response is "No"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

    • Close all RIVO control bases
    10a
    Same condition as in 10 above    		 You determine that the return is NOT valid within scope but there is no revenue protection potential

    • Response is "No"

    • Notate "BFS/PIR" in the Remarks field

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Enter "0.01" as the Offset Reversal Amount

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

    • Close all RIVO control bases
    10b
    Conditions are the same as in scenario 10 above    		 You determine that the return is NOT valid within scope and revenue can be protected, along with funds available for recovery

    • Response is "Yes"

    • Reverse the entire available offset amount

    • Indicate in OSRL LMS, "Fraud " and enter the offset reversal amount

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input/Update EFDS and AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS). Select "Refund Offset" issue

    • Refundable credits to be adjusted:

      1. Refer on OCSE manual referral to AQC spreadsheet with AMS 1040X Worksheet and notate EFDS as appropriate

      2. Send to scheme and update Category as appropriate

    • No Refundable credits to be adjusted:

      1. Send to WOW (manual referral or systemic)

      2. Send to scheme and update Category as appropriate
    11
    Referred offset was generated from a dishonored or misapplied payment, or erroneous refund    		  

    • Response is "Yes"

    • Notate the remarks field as needed

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Reverse entire available offset and input the offset reversal amount in OSRL LMS database

    • Notate AMS as appropriate
    12
    Referred offset is from an overpayment due to subsequent payment towards a balance due where there was an abatement or removal of tax/penalties, transferred ES payment, credit elect, etc.    		  

    • Select the appropriate response to provide based on research conducted

      Reminder:

      Full research and review of both the original and refunding module is required

    • Based on the response, follow the appropriate scenario from above to notate the account on IDRS and OSRL LMS
    13
    Return is determined to be IDT    		 No taxpayer filing located

    • Response is "Yes"

    • Indicate in OSRL LMS "IDT"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Reverse entire available offset amount

    • Enter offset reversal amount in LMS

    • Notate EFDS, AMS as appropriate

    • Triage IDT filing by sending to scheme and updating as per IRM 25.25.5-1, Triage Procedures
    13a
    Same condition as in 13 above    		 Valid taxpayer return located, and the claimed refund is equal to or more than the offset amount

    • Response is " No"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures, including adjusting filing to taxpayer return as appropriate

      Caution:

      Do Not reverse the TOP offset

    • Close all RIVO control bases

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools
    13b
    Same condition as in 13 above    		 Valid taxpayer filing located and there is a balance due or zero return

    • Response is "Yes"

    • Indicate in OSRL LMS "IDT"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Reverse available offset amount

    • Enter offset reversal amount in OSRL LMS

    • Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures including adjusting filing to taxpayer return as appropriate
    13c
    Same condition as in 13 above    		 Valid taxpayer return located, and the claimed refund is less than the offset amount

    • Response is "Yes"

    • Reverse entire available offset amount

    • Enter offset reversal amount in OSRL LMS

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures including adjusting filing to taxpayer return as appropriate

    • After adjustments post, release remaining credit balance to taxpayer as appropriate
    13d
    Same condition as in 13 above    		 Taxpayer refund return located, but does not verify within tolerances established in IRM 25.25.2.2.1 paragraph 6 or contains GATT, Frivolous Claim, Unallowable or dishonored/duplicate erroneous payment/refund concerns as discussed in the Note of paragraph 3 above

    • Response is "Yes" if the entire offset is being reversed

    • Enter "IDT" in ORSL LMS

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Reverse available offset amount

    • Enter offset reversal amount in OSRL LMS

    • Input/Update EFDS & AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS); Select "Refund Offset" issue

    • Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures including adjusting filing to taxpayer return as appropriate

    • Treat taxpayer filing as appropriate :

    • Refundable credits to be adjusted:

      1. Refer on OCSE manual referral to AQC spreadsheet with AMS 1040X Worksheet and notate EFDS as appropriate

      2. Send to scheme and update Category as appropriate

    • No Refundable credits to be adjusted:

      1. Send to WOW (manual referral or systemic)

      2. Send to scheme and update Category as appropriate

      Note:

      Unallowables or other issues (as discussed in the Note in paragraph 3 above, manually refer as appropriate based on responsible functional area, including sending to scheme and updating Category as appropriate.
    14
    Only Schedule C, F, or Household Help (HSH)    		 All is true:

    1. There is no IRP support

    2. The filer did not verify as the TIN owner

    3. There is no consistency

    4. There is nothing on the return that can be used to verify the filer as the TIN owner

    Note:

    Do not consider a Schedule C/F/HSH filing history as consistent when multiple returns claiming them are filed within the same processing year without additional research

    • Response is "Yes"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Reverse available offset amount

    • Indicate "IDT" in the OSRL LMS database and enter the offset reversal amount

    • Triage IDT filing by sending to scheme and updating as per IRM 25.25.5-1 , Triage Procedures

    • Notate EFDS/AMS
    14a
    Same condition as in 14 above    		 Any of the following is true:

    1. There is IRP support

    2. Filer verified as the TIN owner

    3. There is a consistency in filing the schedules

    4. There is other data on the return such as IDOCs with income and/or withholding that can be used to verify the filer as the TIN owner

    5. There are no unallowable considerations as discussed in the Note in paragraph 3 above

    • Response is "No"

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

      Note:

      The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

    • Notate EFDS as appropriate

    • Close all RIVO control bases
    14b
    Same condition as in 14 above    		 All conditions are true as specified in 14 above except, there are unallowables claimed on the return

    • Response is "Yes"

    • Reverse available offset amount

    • Indicate "Fraud" in the OSRL LMS database and the offset reversal amount

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Refer return to the following:
      If refund amount claimed is $10K and over - Refer to Frivolous Return Program for current year returns. Prior year, refer through Lead to the Manual Referral Coordinator
      If refund amount claimed is under $10K, refer as normal

    • Input/Update EFDS & AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS); Select "Refund Offset" issue
    14c
    Same condition as in 14 above    		 Exam previously disallowed a similar Schedule C, F. or HSH

    • Response is "Yes"

      Reminder:

      The Schedule C may not be allowed, but the taxpayer may still qualify for refundable credits if claimed on the return

    • Reverse available offset amount

    • Indicate "Fraud" in the OSRL LMS database and the offset reversal amount

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • Manually refer the return to Exam through the Manual Referral Coordinator and push to Scheme

    • Update EFDS/STARS notes as appropriate

    • Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS); Select "Refund Offset" issuer
    15
    Schedule C, F, or HSH with other types of income and/or withholding    		 Return is verified to be the TIN owner(i.e., IRP support, see IRM 25.25.8.9(6), External Offset Leads (State and Federal Agencies) above for unverified IRP, filer verification, consistency filing, or other data on the return that confirms the TIN owner)

    Reminder:

    See note above in 14

    • The Schedule C, F, or HSH will be accepted

    • Review all other return items for validity and then based on the research completed, select the appropriate scenario above to resolve the account
    15a
    Same condition as 15 above    		 Identity theft is verified Follow guidance in 14 above
    16
    Offset involves an EIP payment    		   See the tables in paragraph 1 and 2 of IRM 25.25.8.3.2, Processing Economic Impact Payment Leads to determine eligibility requirements. If funds should be returned, take the following action to reverse the offset:

    • Reverse the available TOP Offset(s) amount per IRM 21.4.6.5.12, TOP Offset Reversals with Adjustments. Use Hold Code 4 to hold the credit and notice.

    • Open the control to "M" status with category "ELOF" , place in suspense to "1481011111 " and use activity code "DECDEIP" for decedent cases or "IDTSEIP" for suspected or confirmed identity theft cases

    • Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS). Select Refund Offset as the issue, and indicate offset reversal was input on EIP payment

    • Update IDRS refund TIN and tax period in LMS as appropriate

    • IRS response is "Yes"

    • Input "EIP" and additional remarks as appropriate in LMS remarks column

    • Monitor the account for offset reversal transaction to post. Do not take any additional actions. Subsequent actions will be taken by W&I to address the EIP

      If funds should not be returned:

      • Response is "No"

      • Notate EIP in the OSRL LMS remarks field

      • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET"

        Note:

        The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

    • Close all RIVO control bases

  8. The designated POC will upload the response file to the OCSE/HHS portal within 30 days of the initial receipt of the submission.

    Reminder:

    No information that was not originally provided by the source agency may be disclosed

25.25.8.9.1 (07-08-2020)

Responding to Offset Phone Inquiries

  1. The IRS may receive phone calls from taxpayers who were informed their refund offset was not applied to a Federal/State debt because it was returned to the IRS.

  2. Follow the If and Then chart below, document the call in AMS and include the taxpayer’s name and contact information:

    If Then
    1
    The module contains an unreversed TC 971 AC 134 MISC field "BKLD OFFSET"

    • Advise the taxpayer to wait 60 days from the date of the TC 971 input

    • If over 60 days and no action is shown on IDRS, prepare Form e-4442, Inquiry Referral, to RIVO, using the referral category for RICS/RIVO External Lead
    2
    The module contains an open/closed control with activity "FraudCase" and category "DMFC"

    • Advise the taxpayer to allow 45 days from the receive date of the open control to receive a notice/letter requesting documentation to substantiate income/withholding claimed on the return.

    • If over 45 days with no indication of IRS correspondence to the taxpayer, prepare Form e-4442, Inquiry Referral, to RIVO, using the referral category for RICS/RIVO External Lead.
    3
    The module contains a TC 972 AC 134 MISC field "BKLD OFFSET"    		 Advise the taxpayer the refund will offset to any outstanding debt.
    4
    The module contains a TC 972 AC 134 MISC field "BKLD OFFSET" , with category "ELOF" and the funds are posted back to the account (TC 766 with OTN or TC 899 showing offset reversal to IRS, see IRM 21.4.6.4.2.10, TC 899, Reversal or Agency Refund of TOP Offset).    		 If over 15 days with no indication of RIVO action, prepare Form e-4442, Inquiry Referral, to RIVO, using the referral category for RICS/RIVO External Lead.

25.25.8.10 (04-02-2021)

Debit Card Procedures

  1. Mail all potential fraudulent debit cards received at any IRS facility to the Kansas City Service Center in a sealed envelope. Follow PII Guidelines IRM 21.3.3.4.25, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors and UPS Overnight to:
    Internal Revenue Service
    Attn: RIVO External Lead Manager
    Post Office Box 219981
    Kansas City, MO 64121

    1. RIVO reviews the cards and determine the return address of the issuing bank.

    2. Prepare the debit card letter per Exhibit 25.25.8-1, Letter for Intercepted Prepaid Debit Card(s) and track the number of cards sent to the issuing bank.

  2. Reloadit cards are used by some taxpayers to add funds, to pay their balance due. Send the taxpayer letters and Reloadit cards to the Kansas City SP Payment Processing Unit. The SP payment processing unit does not accept credit/debit cards as a valid form of payment. The Payment Processing Unit returns the debit cards to the taxpayer with an explanation of how they can pay their balance due.

25.25.8.11 (01-19-2021)

Centralized Check Process (CCP)

  1. The Centralized Check Process (CCP) inventory is worked by the Kansas City External Lead unit. The unit receives treasury check copies, third-party checks, and miscellaneous payments in the form of money orders, savings bonds, personal checks etc., from all service centers when potential identity theft (IDT) is involved. Refer to IRM 3.10.72.5.5, Extraction of Envelope Contents for Returns and Documents with Remittance and IRM 21.4.3.5.4, Returned Refund Check Procedures. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The original third-party checks are mailed to:
    Internal Revenue Service
    Attn: RIVO External Lead Manager
    Post Office Box 219981
    Kansas City, MO 64121

    Example:

    A check received in a service center made payable to an individual.

    Exception:

    Taxpayer Advocate Service (TAS) follows the Return Integrity and Compliance (RICS) Service Level Agreement (SLA) addendum procedures.

  2. Third-party checks received expired, with Entity (name line) issues, or address changes are not worked in CCP. Return these to the originator for appropriate handling.

  3. If documentation containing a live signature is received with the check, file the document(s) per IRM 25.25.5.2.1, General Replies to Letters/Notices and Undeliverable Mail.

  4. When a CCP case is received, open a control to "C#,CCP,A,EVFY
    148XX00003, *" .

    Note:

    If there is an open lead already, open a closed control for tracking purposes.

25.25.8.11.1 (11-13-2020)

Returned Treasury Checks

  1. If a Federal Refund Treasury Check is returned to the (IRS), verify:

    • It is a Treasury check

    • Taxpayer confirmed the refund issued was not theirs and identity theft (IDT) has occurred

      Note:

      Do not send Social Security, Federal Emergency Management Agency (FEMA), and Restitution Treasury Checks to Centralized Check Process (CCP). Return these checks to the originator for appropriate handling. If there is an open control base, close with "CXX,REJECTTORI,C,EVFY"

    Follow the table below.

    Reminder:

    The POC with access to the Treasury Check Information System (TCIS), will cancel all original treasury checks received using F-stop.

    If And Then
    1
    TC 841 has not posted    		 the check has not been negotiated and identity theft documentation is attached

    The TE will:

    1. Input command code (CC) NOREFP for all original treasury checks received, to ensure funds are held. Use the Integrated Automation Technologies (IAT) tool "Stop Refund" and close the control base.

    2. If not present, input a transaction code (TC) 971 action code (AC) 522 "WI RIVO PNDCLM" for the year you are working, see Exhibit 25.23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status(Initial Claim/Submission).

    3. Input TC 971 AC 134 (if not already present) and TC 971 AC 850.

    4. Input a history item "DONOTRFUND" .

    5. Update the control to reflect "PND841" .

    6. Update EFDS notes to "CCP, Lead # MMDDYYYY XX XX, notate received treasury check (by e-fax or original), dollar amount, check number, and what the taxpayer states "didn't file" etc., notate if a Form 14039, , Identity Theft Affidavit is attached."

    7. Prior year processed returns not in the Scheme Tracking and Referral System (STARS) must be added to the Mass Push Spreadsheet to be updated. When adding a return to the Mass Push Spreadsheet, open a control base on IDRS to:
      Cxx,PNDSTARS,M,EVFY
      148XX00009,*.

    8. Update Accounts Management Services (AMS) History notes with same information as EFDS notes, see IRM 21.2.2.4.5 , Accounts Management Services (AMS).

    9. Update the Lead Management System (LMS) database. Input TC 971 AC 522 (if one does not already exist on CC ENMOD).

      The TCIS POC will:

    10. Access TCIS and use stop code "F" to stop the check.

      Note:

      Use the address provided on the documentation from the taxpayer. If an address is not provided use the address that populates in TCIS.

    11. Update the PND841 IDRS control to:
      "TCISCANCEL" .

    12. Input the cancelled check numbers on the "Cancelled Treasury Checks" monitoring spreadsheet.

    13. Send the cancelled check to Bureau of Fiscal Services (BFS), include the statement" We cancelled the check in TCIS using F-stop."

      Note:

      Stamp "VOID" on all checks if not present.

      Once the TC 841 posts, the monitoring POC working the age list will:

    14. Close the monitoring control with "841posted" .

    15. Close the "PNDSTARS" control base.

    16. Update the disposition return in EFDS/STARS.

      Note:

      Disposition the return to "CAT 5 CL" if resolved by another function. Disposition the return to "CAT 7 CL" if identity theft resolved by Return Integrity Verification Operations (RIVO).
    2
    TC 841 posted    		  

    1. Input TC 971 AC 134 (if not already present) and TC 971 AC 850.

    2. Input a history item "DONOTRFUND" .

    3. If not already present, Input a transaction code (TC) 971 action code (AC) 522 "WI RIVO PNDCLM" for the year you are working, see Exhibit 25.23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Submission).

    4. Close the IDRS control base:
      "C#,841POSTED,C,EVFY"
      1481X00003,* .

      Note:

      It is possible for the treasury check to post as a TC 740. If the credit amount for the check is on the account and the check number matches the TC 740, close the base "740POSTED"

    5. Update EFDS notes to "CCP, Lead # MMDDYYYY XX XX, notate received treasury check, (by e-fax or original), dollar amount sent to BFS, indicate what TP states such as "didn't file" etc., notate if a Form 14039, Identity Theft Affidavit is attached."

      Note:

      Disposition the return to, "CAT 5 CL" if resolved by another function. Disposition the return to "CAT 7 CL " if resolved by RIVO

      Note:

      If IDT and the money is posted, push the return to scheme and refer through STARS as "CAT 7 CC" .

      Note:

      When pushing to Scheme, for source use the service center on the attached Form 3210, Document Transmittal. If no Form 3210 is attached, use the source "OTHER" .

      Note:

      Add prior year processed returns (if not already in STARS) to the Mass Push Spreadsheet to be updated. When adding a return to the Mass Push Spreadsheet, open a control base on IDRS to:
      Cxx,PNDSTARS,M,EVFY
      148XX00009,*

    6. Update AMS History notes with same information as EFDS notes.

    7. If indications of Identity theft ,input TC 971 AC 522 if one does not already exist on CC ENMOD .

    8. Import/Update LMS.

25.25.8.11.2 (01-19-2021)

Third-Party Checks or Miscellaneous Repayments

  1. If a third-party check or miscellaneous repayment is received at an IRS facility, verify that:

    Example:

    Financial Institution issues a check to an individual instead of Department of Treasury or IRS, a money order, etc.

    • It is not a Treasury check

    • The taxpayer indicates that the refund issued is not theirs

    • The taxpayer indicates the refund should not have been deposited to their account


    Original third-party checks are sent to the External Lead Program at:
    Internal Revenue Service
    Attn: RIVO External Lead Manager
    Post Office Box 219981
    Kansas City, MO 64121

  2. Work third-party checks and recovered miscellaneous funds as an External Lead deposit.

  3. For third-party checks received, the RIVO POC will e-mail a copy of the original check to the issuing financial institution using the appropriate script to request that the funds be returned with a check payable to IRS or Department of the Treasury. See the RIVO Portal External Lead page for the appropriate script.

  4. Follow the If/And/Then chart for completing Centralized Check Processing (CCP) for third-party checks and/or miscellaneous repayments:

    If And Then
    1
    Check(s) is made payable to a 3rd Party    		  

    1. Input TC 971 AC 134 (if not already present) and TC 971 AC 850.

    2. Input a history item "DONOTRFUND" .

    3. Update the IDRS control to:
      "3RDPRTYCK" and then update to "PND$AMT" .

    4. If there are indications of identity theft, input a TC 971 AC 522, "WI RIVO PNDCLM" , if it’s not already present for the year you are working, see Exhibit 25.23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Submission).

      Current processing year return or the return is already in STARS:

    5. Update the return disposition to "CAT 7 CC" . Update the disposition to "CAT 5 CL" if resolved by another function, or "CAT 7 CL" , if identity theft was resolved by RIVO.

      Prior processing year return:

    6. Complete the mass push template and open a control base to "C#,PNDSTARS,M,EVFY 148XX00009," .

    7. Input the notes in EFDS and AMS, see IRM 21.2.2.4.5, Account Management Services (AMS). Include in the notes "CCP, Lead # MMDDYYYY XX XX, received (original or efax of check) 3rd party check (Bank’s name) check #XXX $XXX.XX, returned to bank, requesting funds, TP statement (i.e., statement from the taxpayer IDT, erroneous refund, F14039, etc.)."

    8. Monitor the "EVFY" control base.

    Note:

    Funds returned for 3rd Party checks are worked as an ELP deposit.
    2
    Check(s) is made payable to a 3rd Party    		 If no response received after 45 days The monitoring POC working the age list will:

    • Send a follow up e-mail to re-request the funds. Use the appropriate script, see the External Lead Feedback Script posted to the RIVO Portal page. Allow an additional 15 days for a response.

    • Update the IDRS control base "PND$AMT" to "45FOLLOWUP" .

    • Input an EFDS note, "CCP Lead #45 day follow up e-mail sent" .

    • Update AMS with the same information as the EFDS note, see IRM 21.2.2.4.5, Account Management Services (AMS).
    3
    Check(s) is made payable to a 3rd Party    		 If no response received after an additional 15 days from the follow-up e-mail The monitoring POC working the age list will:

    • Input an EFDS note, "No funds returned" , as applicable.

    • Update AMS with the same information as the EFDS note, see IRM 21.2.2.4.5, Account Management Services (AMS).

    • Close the IDRS "45FOLLOWUP and" control base with, "NOFNDSRTND,C" .
    4
    Miscellaneous Repayment
    Check or money order is made payable to:

    • US Treasury

    • United States Treasury

    • Internal Revenue Service

    • Department of the Treasury

    1. There is RIVO activity (RIVO transactions, letters, or freeze conditions

    2. A Form 14039, Identity Theft Affidavit is attached, OR

    3. Correspondence indicates identity theft

    1. Input TC 971 AC 134 (if not already present) and TC 971 AC 850.

    2. Input a history item "DONOTRFUND"

    3. Update the Open an IDRS control base to:
      "PNDMISCCK"

    4. If there are indicators of identity theft for the tax year you are working, input a TC 971 AC 522 "WI RIVO PNDCLM" , if not already present for the year you are working, see Exhibit .23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Submission)

      Current processing year return or already in STARS:

    5. Update the return disposition to "CAT 7 CC." . Update as "CAT 5 CL" if the account is resolved by another function. If identity theft, and the account will be resolved by RIVO, update the return disposition to "CAT 7 CL" .

      Prior processing year return:

    6. Complete the mass push template and open a control to "C#,PNDSTARS,M,EVFY 148XX00009,*" .

    7. Input the notes in EFDS: "CCP, Lead # MMDDYYYY XX XX, received (personal check, money order, cashier’s check) Check #XX $XXX.XX, sent to payment processing. TP states… (i.e., IDT, erroneous refund, F14039, etc.)."

    8. Update AMS with the same information as the EFDS notes, see IRM 21.2.2.4.5, Account Management Services (AMS)

25.25.8.12 (06-21-2022)

Reject Reason Code 17/18/19 Transcripts

  1. Beginning January 2013, an Opt-In Program developed by the IRS, Department of Treasury Bureau of Fiscal Services (BFS) and the National Automated Clearing House Association (NACHA) will allow financial institutions to reject questionable refunds for review.

    Note:

    All Rejects come in on the Reject Reason Code 17 Transcripts.

    Reminder:

    The presence of the notice CP53indicates that a flip to a paper check has been implemented.

  2. Financial Institutions use Reject Reason Code 17, Addendum Record 17 (R17), to reject current year direct deposit refunds when the name/taxpayer identification number (TIN) listed on the Treasury Automated Clearing House (ACH) file for the tax refund does not match the account holder information in the bank’s records. R17 rejects post to IDRS with a TC 841 DLN ending in "77711" and a control base with an assigned number of "1487111117" . Taxpayer receives a CP 53A, Direct Deposit Rejected by Financial Institution -Refund Check Mailed. A Reject Reason Code 17 REFC (refund cancellation) will generate when one or more of the following situations occur in banking filters:

    • The last name on the account (account holder) does not match the name on the return.

    • Multiple named federal tax refunds deposited into single accounts or multiple accounts.

    • Multiple tax refunds for multiple taxpayers going into a single account without any established relationship.

    • Full and partial name mismatches where a relationship to the account holder is not established.

    • TIN on account does not match return information.

    • There is no exact match of the entity information and efforts to reconcile joint filers is exhausted.

    • The IRS requests funds back as part of a recovery attempt. These funds may come back as either a paper check or a deposit. These accounts contain a TC 971 AC 123 with MISC field "TPP Recovery" .

    Reminder:

    The initial notice advises the taxpayer to wait 10 weeks prior to calling regarding their refund.

  3. Financial institutions use Reject Reason Code 17,Addendum Record 18 (R18) to reject current year direct deposit refunds when the bank determines the tax refund is identity theft. R18 rejects post with a TC 841 DLN ending in "77712" and a control base with an assigned number of "1487111118" . Notice CP 53B," Attempt to Direct Deposit Your Refund, Could Not Be Processed" , is mailed to the taxpayer.

    Reminder:

    The initial notice advises the taxpayer to wait 10 weeks prior to checking on the status of their refund.

  4. Financial institutions use Reject Reason Code 17, Addendum Record 19 (R19) to reject current year direct deposit refunds when the bank determines the account holder’s tax refund is fraudulent. R19 post with a TC 841 DLN ending in "77713" and a control base with an assigned number of 1487111119. Taxpayer is mailed a CP 53C, Direct Deposit Rejected by Financial Institution -Refund Check Mailed.

    Reminder:

    The initial notice advises the taxpayer to wait 10 weeks prior to checking on the status of their refund.

  5. Subsequently a refund cancellation R17 transcript listing generates to Return Integrity Compliance Services (RICS) External Leads for workload distribution and refund verification. The refund will be released or held upon the completion of the review. If held the return will be referred to the appropriate treatment stream.

    Exception:

    Do not release accounts containing a TC 971 AC 123 with MISC field "TPP Recovery." Disposition to PS 30 once the recovered funds post, unless research shows the account is already adjusted to the good taxpayer’s figures.

25.25.8.12.1 (06-21-2022)

Reject Reason Code R17 Procedures

  1. The External Lead NACHA Group pull Control D reports for the most recent date for R17, R18, R19 and R23. The files are saved as a text file in their respective folders.

  2. Input EFDS return note BKL-RXX (XX= Reject Reason code 17/18/19/23) on all returns using CASE.

    Note:

    While there are references to R23 rejects in this subsection, the guidance here is primarily for addendum record R17, R18, and R19. Procedures for the R23 inventory will be discussed in more detail in the next subsection, IRM 25.25.8.12.2, Reject Reason Code R23 Procedures.

  3. Complete the following steps after the files are saved.

    1. Use the Access Database and NACHA Import Template for the initial import of the new NACHA leads into LMS. Update each lead with the Lead Type, Total Amount Available for Recovery, and Site.

    2. Assign each lead to "NACHA, NULL" in LMS.

    3. Export the spreadsheets for all the leads imported and save in a working folder until Step e-h.

    4. If there were R18’s received, send those returns to ACE/ADJ with the note "RIVO EL IDT BKLD" and input NACHA note "BKL - R18" . Update LMS as TPP and put in Suspense.

    5. Create an Excel file for the week’s NACHA inventory received, to send to FRE. Apart fromR18s, there should be a tab for each reject code, and within that tab include the lead number, SSN, and tax period for every account received for that reject code.

    6. Save this file in the designated folder for FRE and then email the POCs to let them know the file is ready.

    7. Using the file returned from FRE, fill out the LMS spreadsheets that you saved in Step c. Input all DLN’s, including the ones with no Results. Update all Good returns in LMS and move them to complete. Returns marked as FRE PS30 need to be put into Suspense with a note stating TPP. What remains will be saved in the NACHA Fall Out folder to be assigned to the TE’s.

    8. Based on the results provided by FRE, input the following EFDS notes:
      Add R17 returns to Case and add note "BKL - R17"
      Add R19 returns to Case and add note "BKL - R19"
      Add R23 returns to Case and add note "BKL - R23"

    9. Close all controls on the PS 30 tab from FRE.

      Reminder:

      FRE will take the actions to release the refunds from the list of returns they determined were valid.

  4. The results from FRE, saved in the NACHA Fall Out folder, must be manually screened by the TE assigned the cases. Follow IRM 25.25.2.2, Data Mining Screening, to assist in making a determination and follow the procedures in the table below to determine the appropriate EFDS process status and account resolution actions.

    Reminder:

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

     

    1. Review EFDS to aid in determining a pattern.

    2. Identify any previous IDRS reversal adjustments on the account.

    3. Review the account for Exam activity (TC 42X, -L freeze etc.)

      Note:

      If Exam closed their audit and allowed a 'no-change' determination (TC 300 .00 with no other credit reversals), consider the return valid as filed and do not request funds back from the financial institution. If the funds were already returned, release the funds.

    4. Search entity modules for indications of identity theft such as a previously posted TC 971 with Action Code (AC) 5XX. See IRM 3.5.20.2.8.1, Identity Theft Indicator.

    5. Review IDRS for any payments (TC 610, TC 670, TC 430, TC 716, etc.).

    6. Review account for any balance due conditions (this may indicate other actions taken on the account).

    7. Review IDRS for extension to file (TC 460).

    8. Review EFDS notes for indication of previous RIVO involvement.

      Note:

      Search for open issue or previously verified good through contact employer.

      Note:

      Any IDOC on CC IRPTR containing the warning statement, WARNING - "POTENTIAL FRAUDULENT PAYER TIN" OR "WARNING - POTENTIAL FRAUDULENT SUBMISSION" and any IDOC with the notes in "EFDS, PATMAT-SUS IRP" , "FABRICATED ENTITY" , or "NO EMPLOYEES" , should be considered falsified information and not used to verify wages and withholding.

      Reminder:

      Research to establish whether the return is IDT or Non-IDT. RIVO DOES NOT AUDIT returns.

  5. Follow the table below after determination:

    If And Then
    1
    The return is good    		 filed by the TIN owner

    1. Re-file the return in EFDS.

    2. Update EFDS notes.

    3. Input TC 971 AC 850.

    4. Release the refund inputting a TC 290 .00 with a Priority Code (PC) 1 and a Posting Delay Code (PDC) of 1.

    5. Close all RIVO controls.

      Note:

      Release valid returns en masse weekly.
    2
    The return is considered IDT or reject reason code 18    		 the full TC 846 was returned

    • Disposition the return to Ace Adjustments (PS 30)

      Exception:

      If the return has previously been through the TPP process, the return cannot be put back through the TPP process unless the module contains TC 971 AC 123 MISC field "TPP RRP" .

    • Input an EFDS return note of "RIVO EL IDT BKLD"

    • Close all RIVO controls
    3
    The return is considered IDT    		 the full TC 846 is not returned

    Exception:

    If the account contains a TC 971 AC 123 with MISC field "TPP Recovery" , then treat as in box 2 above

    • Push to Scheme and update the category and disposition to the appropriate identity theft Triage Category per IRM 25.25.5-1, Triage Procedures If completed en masse, update to "CAT 1"

    • Input an EFDS return note of "RIVO EL IDT BKLD"

    • Close all RIVO controls
    4
    The return is questionable    		 is an electronic filed return

    • Update disposition in EFDS as appropriate

    • Close any RIVO open IDRS control bases

  6. Follow the table below for paper returns:

    If Then
    1
    A paper return

    • Request the return from files

    • Input CC ESTABD

    • Update activity to "ESTAB1"
    2
    If more than 14 days have passed

    • Initiate a second request using CC ESTABV to expedite the request

    • Update the activity to "ESTAB2"
    3
    The return is received on the second request    		 Input the IDOC information in EFDS and disposition the return as appropriate.

    Note:

    If pushed to verification , add to manual verification spreadsheet.
    4
    The return is not received on the second request

    • Push the return to Scheme

    • Include a return note in EFDS stating "paper return – not received"

  7. If there is a duplicate Filing Condition on CC TXMODA indicated by a –A Freeze:

    1. Suspend the case, update control base to B status and update the activity to "SUSPNCE2AM" .

    2. When Accounts Management (AM) work is complete, they update the control activity to "DUPWKD" .

    3. RIVO then monitors for the activity update and inputs a TC 290 .00 with PC 1 and closes the control base.

25.25.8.12.2 (04-02-2021)

Reject Reason Code R23 Procedures

  1. Financial Institutions use reject reason code 23 (R23) when a taxpayer states the refund received, is not theirs. IDRS CC TXMODA will contain in the DLN, blocking series number, 77714. R23, generates notice CP-53B.

  2. Pull Control D files for NACHA and save as a text file in the appropriate reject folder.

    • Import NACHA files into LMS using the NACHA Import Template. The lead number is the date on the text file followed by the sequence received that day and the NACHA reject code, i.e., 031918 01 R23.

    • After file imports, update the record in LMS by notating as NACHA, input the total dollar amount on the Control D file in the "Total Amount Available for Recovery" box and assign to Cincinnati.

  3. Send R23s received to ACE/Adjustments and input the "BKL - R23" note along with the "RIVO EL IDT BKLD" note. (If previously re-filed by TPP, check to see if that was because of the lost refund and not because of authentication, they can go back through for lost refund).

  4. Split results into two tabs, TE & Valid. Run the DLNs through Discoverer to determine which accounts have split refunds. Load the accounts that do not contain split refunds on the TE tab in Case, and anything that has not been previously disposition will be sent to ACE/ADJ with the appropriate note "RIVO EL IDT BKLD" . Leave returns with the disposition SCHEME/Verification alone, and send returns in any other process besides Re-file to ACE/ADJ. Review returns in re-file to determine:

    If And Then
    the re-file was from a TE working NACHA   Release the refund
    the re-file was from a TE not working NACHA lost refund Check validity and disposition appropriately
    the re-file was from a TE not working NACHA the return is valid

    • Load into CASE and review any previous dispositions

      Caution:

      These could be IDT returns.

    • Run the returns through a CC IMFOLT and CC TXMODA GII to find out which accounts still have a credit balance and which accounts still have an open control base

    • Close all control bases using Access/Macros & GII

    • Release these refunds with a TC 971 AC 850

    • Re-file (need to show re-filed by a NACHA TE)

25.25.8.12.3 (11-13-2020)

Undeliverable Refunds

  1. Undeliverable refunds involve paper checks returned as undeliverable that were prior R17, R18, R19 rejects and R23. Fraud Referral and Evaluation (FRE) team, compiles a listing of these checks for RIVO to review the account and determine if it meets IDT characteristics. Follow the chart below to determine the applicable action to take:

    If And Then
    1
    Meets IDT characteristics for a current processing year    		 complete overpayment returned Push through manual TPP process to PS 30 with the specific bank lead EFDS note.
    2
    Meets IDT characteristics for a prior processing year    		 complete overpayment returned push to STARS and update as CATG "7" Disp "MR" .
    3
    Meets IDT characteristics for a current processing year    		 partial refund returned (i.e., split payment and only one TC 846 was returned as undeliverable) push to STARS and update as CATG "7" Disp" MR" .
    4
    Meets IDT characteristics for a prior processing year    		 partial refund returned push to STARS and update as CATG "7" Disp "MR" .
    5
    Does not meet IDT characteristics    		   Take no action.
    6
    Cannot determine if meets IDT characteristics    		   update EFDS note but take no actions.

    Note:

    FRE monitors for 60 days. If the S freeze is unresolved, push to STARS, update to Cat 7 and the applicable disposition.

Exhibit 25.25.8-1

Letter for Intercepted Prepaid Debit Card(s)

Letter for Intercepted Prepaid Debit Card(s)
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
ATLANTA, GA 30308
Financial Institution
PO Box 12345
Anywhere USA
 
By :e-mail/mail/fax
 
Re: Intercepted Prepaid Debit Cards
The U.S. Postal Inspection Service notified us that it suspected that prepaid debit cards you issued were used to receive fraudulent Federal tax refunds. The U.S. Postal Inspection Service intercepted these cards from the mail and provided them to our agency. We are returning these cards to you as the identified issuing institution.
We wish to investigate whether any Federal tax refunds were deposited to the prepaid debit cards returned to you to ensure that we recover all refunds that are improper Federal payments. This letter is our request for your assistance with the investigation.
The Federal Right to Financial Privacy Act, as amended in 2008, authorizes you to assist us by providing financial records, upon request, when we are investigating or recovering an improper Federal payment. In accordance with 12 U.S.C. § 3413(k)(2)(B), we request that you provide us with the direct deposit (routing and deposit account) numbers, Federal tax refund amounts, date of deposit or ACH transfer, and Social Security Number reported by the Treasury Financial Management Service on the ACH file for each Federal tax refund deposit that posted to the cards returned to you so that we may match this information against our records. Our request for direct deposit numbers is focused on the numbers your customer would enter on a Federal tax return to direct a refund to the card.
We ask that you provide this response in spreadsheet format within 20 days from the date of this letter by secure email to efleads@irs.gov with a subject line following this format: Intercepted Prepaid Debit Cards, [Your Name], [Date]. Please direct any questions about this request to the same email address.
We may later request that you return to us any refunds you identify to the extent that funds remain in the accounts you identify. We may also request your best efforts to protect the funds in any accounts by stopping the re-issuance of these cards and refusing any further withdrawals or payments requested by the cardholder.
We appreciate your assistance in this matter.
Sincerely,
 
Denise D. Davis
Director, Return Integrity Operation
Exhibit 25.25.8-2

External Lead Involvement Indicators

The following chart contains the Integrated Data Retrieval System (IDRS) control bases and history items indicating External Lead involvement.

1
IDRS Activity and Control number		 Description
2
"BKLD" (148XX00001)		 An External Lead was received.
3
"REQFUNDS" (148XX00002)		 IRS requested the funds (refund) from the financial institution.
4
"PND841BFS" (148XX00003)		 Federal Refund Treasury Check received. Wait for TC 841 to post back funds.
5
"BKLDCKRECD" (148XX00004 or 148XX00007)		 IRS received the funds (refund), the amount returned typically is less than the TC 846 due to bank fees.
6
"BKLCOMNGLD" (148XX00004 or 148XX00007)		 IRS received the funds (refund) but is unable to determine the dollar amount to apply to this account or the account was previously adjusted, and the refund covered up with a TC 841. These funds are placed in a general ledger account.
7
"NOFNDSAVLB" or "NOFNDSRTND" (148XX00004 or 14XX00007)		 No funds (refund) are available to be returned to the IRS or no funds returned (no response from the bank)
8
"BKLDACHREV" (148XX00005)		 Automated Clearing House (ACH) Reversal associated to an External Lead.
9
"VALID150" (148XX00007)		 When TC 720 posts, refund will be released.
10
"DONOTRELSE" or "DONOTRFUND" (148XXXXXXX)		 TC 720 or TC 841 posted, and refund should not be released without approval from RIVO.
11
"PNDSTARS" (148XX00009)		 Suspend until return has been pushed to STARS and can be referred
12
"FRAUDCASE" , with Category code "ELOF" (148XX00012)		 Suspend until offset reversal posts back to the account (TC 899)
13
"BKLD OFFSET"		 There is a potential for an offset reversal based on account review
14
"3RDPRTYCK"		 Third-party check received that has not posted.
15
"PNDMISCCK"		 Payment received to repay a refund received in error.
16
"720PENDING"		 Waiting for the posting of the TC 720. Funds to post back to the account
17
"PND722"		 Waiting for the TC 722 to post
18
"722POSTED"		 The TC 722 posted
19
"PND841" assigned to 148xx00014		 Waiting for the posting of the TC 841. Funds to post back to the account.
20
"PND841" assigned to 148xx00017		 Waiting for the posting of the TC 841. Funds to post back to the account.
21
"ALTEREDCK" assigned to 148xx00003		 The refund check has been altered. i.e., money amount changed, name changed etc.,
22
"841POSTED"		 Funds have posted back to the account.
23
"TCISCANCEL"		 A treasury check has been canceled through TCIS and is waiting for the TC 841 to post to the account.
24
"PNDMISCCK"		 A miscellaneous payment was received from the taxpayer to repay the refund. Waiting for the posting of the payment.
25
"BKLDERROR"		 A control was opened in error.
26
"RFNDNOTHLD"		 The refund was not held .
27
"REJECTTORI"		 Reject the case back to refund inquiry.
28
"740POSTED"		 The TC 740 posted to the account.
29
"720POSTED"		 The TC 720 has posted to the account.
30
"NOTIRSFNDS"		 The funds were not issued by IRS and they are not being requested back from the financial institution.
31
"DECEIP"		 A lead involving a deceased taxpayer who received an Economic Impact Payment.
32
"IDTEIP"		 A lead involving an Economic Impact Payment that has an indicator of identity theft.
Exhibit 25.25.8-3

Recovery from Third Party Check Letter

Recovery from Third Party Check Letter
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
ATLANTA, GA 30308
Date
Financial Institution
Address
City, ST Zip code
By: mail
Re: Recovery from Third Party Checks
We received third party checks that we believe were issued by you in connection with the filing of federal tax returns claiming a fraudulent tax refund. We are returning these checks to you as the identified issuing institution.
We wish to investigate whether any federal tax refunds were deposited to the accounts of the checks we have returned to you to ensure that we investigate and recover refunds that are improper federal payments. This letter is our request for your assistance with the investigation.
The Federal Right to Financial Privacy Act, as amended in 2008, authorizes you to assist us by providing financial records, upon request, when we are investigating or recovering an improper federal payment. In accordance with 12 U.S.C. § 3413(k)(2)(B), we request that you provide us with the following information about federal tax refunds that posted to the accounts related to the checks we are returning to you:

  • Direct deposit (routing and deposit account) numbers,

  • Federal tax refund amount,

  • Date of deposit or ACH transfer,

  • Name reported on the ACH file, and

  • Social Security Number reported on the ACH file
Our request for direct deposit numbers is focused on the numbers your customer would enter on a federal tax return to direct a refund to your bank. We welcome additional information, such as the account or customer reference number, that will assist us in communicating with you about these refunds.
We ask that you create an electronic spreadsheet listing only suspect refunds that posted to accounts that currently have a positive balance. If there is no chance of returning any part of a refund, please exclude the refund from your spreadsheet. We ask that you provide the spreadsheet within 30 days from the date of this letter by secure email to efleads@irs.gov with a subject line following this format:
Recovery from Third Party checks, [Your Financial Institution Name], [Date]
Please mention this letter in the email body and include information about a point of contact at your institution. Please describe any potential patterns or trends of improper payment revealed by federal refunds you received, even if related to accounts with a zero balance or other accounts at your institution. If you include details about these other accounts, please make clear that you are not offering to return funds from those accounts, for example by listing the current balance on each account. You do not need to provide any detail if you are already working with another IRS office to report potential refund fraud.
We may later request that you return to us any refunds you identify to the extent that funds remain in the account. We may also request your best efforts to protect the funds in any accounts by stopping the re-issuance of these checks and refusing any further withdrawals or payments requested by the account holder.
Please direct any questions about this request to efleads@irs.gov.
We appreciate your assistance in this matter.
Sincerely,
 
Denise D. Davis
Director, Return Integrity Operation