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Part 3. Submission ProcessingChapter 17. Accounting and Data Control3.17.79 Accounting Refund TransactionsManual TransmittalDecember 13, 2022 Purpose(1) This transmits revised IRM 3.17.79, Accounting and Data Control, Accounting Refund Transactions. Material Changes(1) Removed instructions throughout IRM to mail BFS documents and memos to CFO and replaced with instructions to e-mail them instead. IPU 22U0264 issued 03-08-2022 (2) IRM 3.17.79.1.1.1(1) - Added note to state that you will need to complete Course 49363 in order to receive full credit for Manual Refund Training. IPU 22U0264 issued 03-08-2022 (3) IRM 3.17.79.1.8(7) - Added International Treasury Services (ITS) to the list of refund types and methods. IPU 22U0619 issued 05-16-2022 (4) IRM 3.17.79.1.11(3)c - Updated DO renewal procedures to allow for the completion of the 2958DO or the Pre-Expiration Notice sent from BFS. IPU 22U0264 issued 03-08-2022 (5) IRM 3.17.79.1.11(4)(f) - Changed requirement of the presence of a physical Validation Label from BFS on the back of the returned Form FS 2958DO to the presence of a Digital Signature in Section IV - Fiscal Service Validation on the front of the form. (6) IRM 3.17.79.1.12(2)(a)&(c) Updated process to include instructions on how to electronically complete and submit the necessary forms to the BFS. (7) IRM 3.17.79.1.12(3) Updated requirement for recertification with Fiscal Service for CO’s from every 2 years to every year. IPU 22U0829 issued 07-25-2022 (8) IRM 3.17.79.1.12(3) Updated process to include instructions for submitting CO paperwork to the BFS electronically instead of by paper. (9) IRM 3.17.79.1.12.1 - Updated subsection on Certifying Officer Training to require the completion of the Fiscal Service Certifying Officer Training to be completed within 30 days prior to submission of the form. (10) IRM 3.17.79.1.12.3(1) - Updated requirement for recertification with Fiscal Service for CO’s from every 2 years to every year. IPU 22U0829 issued 07-25-2022 (11) IRM 3.17.79.1.13(3)(a)&(c) Updated process to include instructions on how to electronically complete and submit the necessary forms to the BFS. (12) IRM 3.17.79.1.13(4) - Updated requirement for recertification with Fiscal Service for DEO’s from every 2 years to every year. IPU 22U0829 issued 07-25-2022 (13) IRM 3.17.79.1.13(4) - Updated process to include instructions for submitting DEO paperwork to the BFS electronically instead of by paper. (14) IRM 3.17.79.1.15, IRM 3.17.79.1.16, and IRM 3.17.79.1.17 - Added information on ITS roles and enrollment procedures. IPU 22U0619 issued 05-16-2022 (15) IRM 3.17.79.3.2.2 - Removed procedures from Note for rejecting to Philadelphia SB/SE because they were outdated and all Manual Refund rejects should be handled by submitting the completed Form 15276 to the preparer, signer, and BOD contact. (16) IRM 3.17.79.3.2.2(9) - Updated the TEGE and Field Assistance contacts for manual refund reject. IPU 22U0619 issued 05-16-2022 (17) IRM 3.17.79.3.2.2(9) - Updated the contacts for W&I CARE when sending manual refund rejects. IPU 22U0829 issued 07-25-2022 (18) IRM 3.17.79.3.4.1(2) - Added link to the Erroneous Refund folder. IPU 22U0264 issued 03-08-2022 (19) IRM 3.17.79.3.4.2(7) - Added link to the Erroneous Refund folder. IPU 22U0264 issued 03-08-2022 (20) IRM 3.17.79.3.4.3(5)(f) - Added description of classified waste and cross reference IRM 21.5.1, General Adjustments. (21) IRM 3.17.79.3.5(6) - Added Note to indicate that the two business day requirement would not begin until the following business day for any Form 14031 received within one hour or after Accounting’s normal close of business. (22) IRM 3.17.79.3.5.2.1(7) - Changed wording to include when the quarterly memorandum needed to be completed, and digitally signed, by the designated official within each Accounting Operation. (23) IRM 3.17.79.3.5.3 - Updated the dates for the annual processing requirements for Form 14031. IPU 22U0264 issued 03-08-2022 (24) IRM 3.17.79.3.6(2)e - Updated information for large dollar refunds to correctly state when a manual refund is required. IPU 22U0264 issued 03-08-2022 (25) IRM 3.17.79.3.10 - Added ITS as an approved method for disbursing a manual refund in rare circumstances. IPU 22U0619 issued 05-16-2022 (26) IRM 3.17.79.3.10.1.2 - Added subsection detailing what information is needed for ITS refund requests. IPU 22U0619 issued 05-16-2022 (27) IRM 3.17.79.3.14(7) - Added reference to Document 12990 and reference to IRM 1.15 for Records and Information Management. (28) IRM 3.17.79.8.11(2) - Updated Delegation Order revision number and added reference to IRM 1.2.2.14.7. (29) IRM 3.17.79.10.6(2) - Added information on retention timeframe for the photocopy of the TFS Form 3813 and a note explaining that the original is permanently filed. (30) IRM 3.17.79.8.11 - Added section for Whistleblower award payments and guidelines for issuing them via direct deposit. IPU 22U0619 issued 05-16-2022 (31) IRM 3.17.79.9(2)b - Updated Note to change Submission Processing Accounting Headquarter contact for Erroneous Refunds. (32) Exhibit 3.17.79-1 - Added ITS to the list of glossary terms. IPU 22U0619 issued 05-16-2022 (33) IRM 3.17.79.12.1(4)(e) - Removed entire paragraph (e) as it is no longer valid because paper Form 1081s are no longer received. Information has already been removed in IRM 3.17.80. (34) IRM 3.17.79.12.2(8)(b) - Added retention information for TRACS (SF 1081) listings. (35) Editorial change have been made through out this IRM for:
Effect on Other DocumentsIRM 3.17.79, dated November 24, 2021 (Effective January 1, 2022) is superseded. The following IRM Procedural Updates have been incorporated: IPU 22U0264 issued 03-08-2022, IPU 22U0619 issued 05-16-2022, and IPU 22U0829 issued 07-25-2022. AudienceEmployees primarily in the Submission Processing, Accounting Operations for pre-journal (or Master File generated refunds, transaction code (TC) 846) and post-journal refund activities (also known as TC 840). All managers and employees involved in processing and/or initiating manual refunds are required to take annual manual refund training (as recommended by the Government Accountability Office). Effective Date(01-01-2023) James L. Fish 3.17.79.1 (11-30-2017) Program Scope and Objectives
3.17.79.1.1 (11-30-2017) Background
3.17.79.1.1.1 (03-08-2022) Training
3.17.79.1.1.2 (12-03-2019) Weekly Integrated Talent Management (ITM) Reporting in January
3.17.79.1.2 (12-07-2020) Authority
3.17.79.1.3 (12-07-2020) Responsibilities
3.17.79.1.4 (12-07-2020) Program Management and Review
3.17.79.1.5 (12-07-2020) Program Controls
3.17.79.1.6 (11-24-2021) Terms/Definitions/Acronyms
3.17.79.1.7 (12-07-2020) Related Resources
3.17.79.1.8 (05-16-2022) Refund Types and Methods - Treasury Disbursing, Bureau of the Fiscal Service
3.17.79.1.9 (12-06-2016) Taxpayer Information, Returns and Refund Documents
3.17.79.1.10 (01-01-2014) Sequence of Refund Records
3.17.79.1.11 (12-13-2022) Authorized Signatures and Delegations of Authority
3.17.79.1.11.1 (12-03-2019) Delegating Official Monthly Documentation Review Requirement
3.17.79.1.11.2 (11-10-2020) Manual Refund Digital Signature Requirement
3.17.79.1.12 (12-13-2022) Designating Certifying Officers (CO)
3.17.79.1.12.1 (03-08-2022) Certifying Officer (CO) Training
3.17.79.1.12.2 (12-03-2019) Certifying Officer Monthly Source Document Review Requirement
3.17.79.1.12.3 (07-25-2022) Certifying Officer Monthly Documentation Review Requirement
3.17.79.1.12.4 (11-10-2020) Manual Refund Digital Signature Requirement
3.17.79.1.13 (12-13-2022) Data Entry Operators (DEO)
3.17.79.1.13.1 (12-03-2019) Data Entry Operator Monthly Documentation Review Requirement
3.17.79.1.13.2 (11-10-2020) Manual Refund Digital Signature Requirement
3.17.79.1.14 (03-08-2022) Trusted Enrollment Agent (TEA)
3.17.79.1.15 (05-16-2022) ITS Authorizing Official (AO)
3.17.79.1.15.1 (05-16-2022) Authorizing Official Delegation/Revocation/Name Change
3.17.79.1.16 (05-16-2022) ITS Payor
3.17.79.1.16.1 (05-16-2022) Payor Delegation/Revocation/Name Change
3.17.79.1.17 (05-16-2022) ITS Payment Creator
3.17.79.1.17.1 (05-16-2022) Payment Creator Delegation/Revocation/Name Change
3.17.79.2 (12-03-2019) Generated Refunds Standard Form (Form) 1166, Voucher and Schedule of Payments, Secured Payment System (SPS)
3.17.79.2.1 (11-30-2017) Enterprise Computing Center (ECC) Generated Files
3.17.79.2.2 (01-01-2013) Generated Refunds, Tapes and Schedules
3.17.79.3 (01-01-2013) Processing Requests for Refunds
3.17.79.3.1 (11-06-2015) General Ledger Account - Types of Refunds
3.17.79.3.2 (05-10-2021) Processing Manual Refunds
3.17.79.3.2.1 (12-03-2019) Uploading Forms 3753 and Forms 5792 (PDF Copy) onto the Manual Refund Project SharePoint Site
3.17.79.3.2.2 (12-13-2022) Rejecting Manual Refunds
3.17.79.3.2.3 (11-10-2020) Manual Refund Digital Signature Requirement
3.17.79.3.2.4 (02-14-2020) Monitoring Manual Refunds Initiated by Accounting
3.17.79.3.2.5 (03-15-2021) Manual Refund site shutdown/emergency contingency procedures for Form 5792
3.17.79.3.2.6 (03-15-2021) Manual Refund site shutdown/emergency contingency procedures for Form 3753
3.17.79.3.3 (08-25-2020) Issuing Hardship Refunds
3.17.79.3.3.1 (01-28-2016) Actions Required of Initiators Before Requesting Refunds
3.17.79.3.3.2 (10-25-2017) Manual Refunds for Unprocessed Original Returns
3.17.79.3.4 (12-03-2019) Reporting Manual Refunds
3.17.79.3.4.1 (03-08-2022) Reporting of Manual Refunds without Open Control Base
3.17.79.3.4.2 (03-08-2022) Manual Refund Monthly Monitoring (10 Cases) - Submission Processing
3.17.79.3.4.3 (12-13-2022) Managerial Review - Monitoring Requirements
3.17.79.3.5 (12-13-2022) Employees Authorized to Sign Requests for Refunds
3.17.79.3.5.1 (12-03-2019) Form 14031 and Form 10247 Monthly Review
3.17.79.3.5.2 (11-10-2020) Quarterly Head of Office Validation
3.17.79.3.5.2.1 (12-13-2022) 100 Percent Review of The Quarterly Validated Listings and Command Code (CC) RSTRK(M) Listing
3.17.79.3.5.3 (03-08-2022) Annual Processing Requirements for Form 14031, Manual Refund Signature Form
3.17.79.3.5.4 (12-03-2019) Form 14031 Processing Requirements for Unidentified/Excess Collections/Photocopy Fee Manual Refunds (Submission Processing ONLY)
3.17.79.3.5.5 (11-10-2020) Manual Refund Digital Signature Requirement
3.17.79.3.6 (12-13-2022) Manual Refunds $1 Million or More and $10 Million or More
3.17.79.3.7 (11-10-2020) $50 Million and Over or $500 Million and Over Refund Reports to Treasury
3.17.79.3.8 (01-01-2013) Refunds Held at Treasury Request
3.17.79.3.9 (01-01-2013) Taxpayer Refund Inquiry
3.17.79.3.10 (05-16-2022) Direct Deposit Tax Refunds
3.17.79.3.10.1 (06-03-2020) Form 8302, Electronic Deposit of Tax Refund of $1 Million or More
3.17.79.3.10.1.1 (08-29-2014) Federal Wire Transfers (FEDWIRE) and International Payments
3.17.79.3.10.1.2 (05-16-2022) International Payments via International Treasury Services (ITS)
3.17.79.3.10.2 (11-19-2015) Payment Date and Holidays
3.17.79.3.11 (07-30-2020) Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax
3.17.79.3.11.1 (12-03-2019) Accounting Form 4466 Processing Instructions
3.17.79.3.11.2 (11-19-2015) Form 4466 - Research Federal Tax Deposits Payments on Master File
3.17.79.3.11.3 (01-29-2014) Processing Form 4466 for Form 1120-S Filers
3.17.79.3.12 (01-01-2015) Non-Resident Alien and Dual Status Refunds (Austin Only District Office or DO 97 and 98)
3.17.79.3.13 (01-01-2013) Refunds Based on Court Decisions
3.17.79.3.14 (12-13-2022) Lockbox Losses and Shortages
3.17.79.3.15 (01-13-2016) Overpayments on Bankruptcy Cases
3.17.79.3.16 (03-22-2019) Offset Bypass Refunds
3.17.79.3.17 (11-19-2015) Refunds from Examination (Compliance)
3.17.79.3.18 (12-03-2019) Credit Card Processor Chargebacks (Ogden Accounts Management Only)
3.17.79.4 (02-25-2014) Request for IDRS Generated Refunds (IGR), Form 5792
3.17.79.4.1 (03-15-2021) Case Review and Command Code REFAP (Refund Approval)
3.17.79.4.2 (01-01-2014) RFUND/REFAP Mismatch
3.17.79.4.3 (03-15-2021) Certifying the IDRS Generated Refund (IGR) Tape
3.17.79.5 (03-15-2021) Accounting Review of Manual Refund Requests, Form 3753
3.17.79.6 (01-22-2015) Standard Form (Form) 1166, Voucher and Schedule of Payments and Secure Payment System (SPS)
3.17.79.6.1 (06-18-2015) Scheduling Refunds
3.17.79.6.2 (08-29-2014) Regional Financial Center Mailing Addresses
3.17.79.6.3 (12-03-2019) Contingency Standard Form (Form) 1166 Voucher and Schedule of Payments
3.17.79.6.3.1 (01-01-2015) Secure Payment System (SPS) Contingency Plans
3.17.79.6.3.2 (01-01-2015) Form 813, Document Register
3.17.79.6.3.3 (12-03-2019) Distributing Posting Documents
3.17.79.6.4 (11-19-2015) Bureau of the Fiscal Service Secure Payment System
3.17.79.6.4.1 (11-19-2015) Maximum Payment Amounts
3.17.79.6.4.2 (07-31-2020) Certifying Automated Clearing House (ACH)/Direct Deposit Hardship Refunds
3.17.79.6.5 (01-01-2015) Special Uses of Standard Form (Form) 1166
3.17.79.7 (01-01-2013) Information Documents, Form 1099 and Form 1042-S
3.17.79.7.1 (11-19-2015) Manual and NMF Refunds |
Site: | RACS Distribution List |
---|---|
Ogden | &CFO:FM:CFM RACS Ogden |
Austin | &CFO:FM:CFM RACS Austin |
Kansas City | &CFO:FM:CFM RACS Kansas City |
The RACS team will journal the documents using the CO Report that was previously saved in the SP, ATP, Manual Refund Project SharePoint Site within the "PHOREF (Photocopy Fees)" folder located in the "Manual Refund Documents" link at the following SharePoint:Manual Refund Project - Home (sharepoint.com) folder.
Note:
Access to the Manual Refund SharePoint site must be requested by a manager level employee and submitted to the Manual Refund Headquarter Contacts.
Once journaled RACS will add the Date and Journal Number to the top of the CO Report and re-save using the following naming convention: MM.DD.YYYY RACS Journaled PHOREF in the Manual Refund SharePoint Site within the CFO (RACS) folder.
3.17.79.8.4 (10-09-2015)
Refunding From 6800 Account, Excess Collections
Credits which remain unapplied for 12 months or longer are generally transferred to 6800 Account. Sometimes, these credits are subsequently identified for a refund. See the statutory limits discussed in IRM 25.6, Statute of Limitations.
Amounts are refunded from Excess Collections, 6800 Account.
3.17.79.8.5 (12-07-2020)
Refunding from 4610 Account, Unapplied Advance Payments (ANMF Accounts)
Amounts representing cash bonds or unapplied advance payments are held in 4610 Account, until deficiency assessments are made, and the payment is applied, or part or all of the payment is refunded. The submission of cash bonds or advance payments stops the running of interest on the amount of any deficiency covered by the payment.
No interest is allowed on any part of the deposit(s) refunded to the taxpayer, if the deposits are prior to October 22, 2004, per Rev. Proc. 2005-18. Interest is allowed on certain deposits submitted after October 22, 2004, per IRC 6603(d), if they meet the criteria in Rev. Proc 2005-18. A Section 6603(d) payment is identified on the tax account by TC 640 with blocking series 990–999. See IRM 20.2.4.8.1, Interest - Overpayment Interest, Cash Bonds for additional information.
Amounts in excess of the deficiency assessments are refunded. To refund deposit amounts in excess of the deficiency assessment:
Prepare Form 3753.
No interest is allowed on these excess deposits.
Forward case file with supporting documentation to the Manual Refund function. Continue processing as outlined in IRM 3.17.79.3.2 and IRM 3.17.79.3.5.
The Manual Refund function prepares, schedules, certifies and transmits the refund schedule via SPS. Forward Schedule to RRACS for further processing.
There may be occasions when the taxpayer responds to the 316C Letter, and the taxpayer requests all or part of the payment be refunded.
The area receiving the response from the taxpayer to the 316C Letter initiates Form 3753.
Forward case file with supporting documentation to the Manual Refund function. Continue processing as outlined in IRM 3.17.79.3.2 and IRM 3.17.79.3.5.
The Manual Refund function prepares, schedules, certifies and transmits the refund schedule via SPS.
Enter Schedule Number on Form 3244A, Payment Posting Voucher Examination Division. Route copy of Form 3244A to SC Examination. Forward refund schedule to RRACS for further processing.
3.17.79.8.6 (01-01-2014)
Processing Unapplied Remittance Refunds (Form 4878)
When Accounting Operations receive generated Form 4878, Voucher and Schedule of Payments, from IDRS, these represent items identified for application to another government agency or for refund to the taxpayer because the correct application cannot be identified.
Prepare summary Voucher and Schedule of Payments in triplicate. Attach Form 4878 to each SPS/Form 1166 copy. Original copy (first) of Form 4878 must go to the Bureau of the Fiscal Service (BFS) Regional Financial Center (RFC).
Compare and reconcile the total with the total shown on the summary SPS/Form 1166.
Assign schedule number to SPS/Form 1166.
The Certifying Officer or designee detaches original and duplicate SPS/Form 1166 with Form 4878 attached, (first and second copy) and sends to the RFC.
See IRM 3.17.63, Redesigned Revenue Accounting Control System, for the appropriate RRACS Screen. RRACS will serially number Form 8166 and enter the number on the related SPS/Form 1166, and return these forms for filing.
3.17.79.8.7 (01-01-2013)
Audit or Collection Adjustments; Refunds in Names Other Than the Taxpayer-Form 3460, Transmittal Memo
Form 3460 (Transmittal Memo Accounting Control Document) noted "Manual Refund" with Audit and Collection adjustments of IMF and BMF returns may be received for processing.
"Sensitive" , "Hardship" , Joint Committee, Civil, or Tentative Carryback Allowances are included with cases indicating that a refund check is to be issued in a name other than that of the taxpayer, and a permanent name change is not involved. Joint Committee cases must have the accompanying documents from the Joint Committee attached.
The related returns are not attached.
A completed Form 3753 giving the DLN of the original return, is received for each case. Form 3753 must have specific reasons written in "Remarks" section. If not complete, requests will be rejected see IRM 3.17.79.3.2.2.
Audit adjustment is substantiated by Form 1331-B, scanned copies of taxpayers' letters, or Form 5344.
Data Processing (DP) tax adjustments are received with Form 8485, or IDRS Form 5147, IDRS Transaction Record.
If Form 5344 or Form 8485 is not noted Hold Code "1" or "2," return case to the Adjustment function.
3.17.79.8.8 (01-01-2014)
Refunds for Less Than $1.00
Overpayments of less than $1.00 are systemically cleared from the module by the posting of a TC 386. If a taxpayer requests a refund of an overpayment of less than a $1 for IMF accounts, see IRM 21.4.4.3.1, Requests for Refund Less Than $1.00.
Requests for a refund of an overpayment of less than $1.00 for BMF accounts must be issued as a manual refund request, see IRM 21.4.4.3.1, Requests for Refund Less Than $1.00.
3.17.79.8.9 (12-07-2020)
U.S. Virgin Islands Resident - Cover Over (AUSPC Only) Excluding Additional Child Tax Credit Coverovers
U.S. citizens and resident alien individuals who either are bona fide residents of the U.S. Virgin Islands (USVI) during the entire taxable year, or, who file a joint tax return for the taxable year with an individual who is a bona fide resident of the Virgin Islands, must file income tax returns with the USVI Bureau of Internal Revenue. They are generally not required to file U.S. returns, except to pay self-employment tax (Form 1040 SS), unless they fail to report all of their income, identifying its source and fully pay the correct amount of tax to the USVI. The USVI will send certain income tax returns to the IRS with a list and a certification that the individuals are legal residents in cases where cover over to the USVI is necessary because there is U.S. withholding or net collections of income tax.
Accounting receives from IMF International Accounts Management:
Copy of verified list of taxpayers.
Original Memorandum to the Treasury of the Virgin Islands (V.I.).
Form 3809, Miscellaneous Adjustment Vouchers, to process TC 820 to debit each taxpayer's account and transfer the credits due to the Virgin Islands.
DO NOT PROCESS MANUAL REFUNDS DIRECTLY TO VIRGIN ISLANDS GOVERNMENT.
Accounting balances Form 3809 to the Form 3753. Forms 3809 are numbered using area File Location Code (FLC) 66, see IRM 21.8.3 for Blocking Series chart and Form 813 prepared. Refund schedule number is assigned, and Form 3753 is input to SPS (formerly ECS) for issuance of a consolidated paper check. The Certifying Officer certifies the request and it is transmitted to BFS (Bureau of the Fiscal Service) for payment.
Documents (Forms 3809 and 3753) are delivered to the RRACS Team to prepare Form 8166, input to RRACS and distribution.
3.17.79.8.9.1 (12-07-2020)
Military Cover Over for U.S. Virgin Islands, Commonwealth of Northern Mariana Islands (CNMI) and American Samoa Residents (IRC 7654)
The Internal Revenue Service must cover over the income taxes collected with respect to bona fide residents of U.S. Virgin Islands, CNMI or American Samoa who join the U.S. Armed Services to the respective territories.
After appropriate research by IMF International Accounts Management, Accounting receives:
Copy of verified listing for the individual Territory.
Cover letter addressed to the territory Bureau of Internal Revenue (BIR) Disclosure Officer for each tax year.
Form 3809, Miscellaneous Adjustment Vouchers, to process TC 820 to debit each taxpayer's account and transfer the credits due to the individual Territory.
One Form 3753, Manual Refund Posting Voucher, to issue consolidated check to the Government of the appropriate Territory.
Accounting balances Form 3809 to the Form 3753. Form 3809 are numbered using area FLC (File Location Code) 66, see Blocking Series chart and Form 813 is prepared. Refund Schedule number is assigned and Form 3753 is input to SPS for issuance of consolidated check to the appropriate Territory. The Certifying Officer certifies the refund and it is transmitted to BFS for payment.
Payments are made by the following: American Samoa -ACH Direct Deposit Northern Mariana Islands -Same Day Pay Direct Deposit U.S. Virgin Islands -Paper Check Documents (Form 3809 and Form 3753) are delivered to RRACS Team for preparation of Form 8166, Revenue Accounting Control System (RACS) Input Reconciliation Sheet, input to RRACS and distribution to:
Treasurer/Director
Department of Treasury
American Samoa Government
Pago Pago, American Samoa 96799Forward lists and Form 3753 to local Quality Assurance team for review.
3.17.79.8.9.2 (01-01-2015)
Wire Transfer of Funds to American Samoa
Taxpayers may initiate the request for a wire transfer refund with Ogden Submission Processing Center by filing a Form 8302 (Rev. 12-2009), Direct Deposit of Tax Refund of $1 Million or More, other supporting documentation, their return or claim. Refunds for amounts less than $1 million, for any single tax year, must be issued by check.
Form 3753, is prepared by the area initiating the refund and forwarded with the complete case file to Accounting Operations for review and preparation of refund schedule and voucher (SPS/Form 1166).
The Manual Refund function will verify the attachments and other backup supporting documentation filed with Form 8302.
Verify the Treasurer/Director's signature appears on the accompanying backup supporting documentation, the bank official's name, address and telephone number, etc. If any of the pertinent information is not provided by the taxpayer, you must issue the refund by check, as provided in IRM 3.17.79.5. Prepare correspondence to the Treasurer/Director stating, "the refund will be issued by check rather than by same day pay or wire transfer," when Form 8302 is incomplete or lacks backup supporting documentation.
The requirements for a deposit ticket or check need not be followed in this instance due to the verification of the Samoan government's bank, the ABA number of the bank, and the bank account number of the Department of the Interior. Other supporting documentation may also be included.
If Form 8302 is satisfactory, note in the remarks section of Form 3753, "FEDLINE or same day payment to taxpayer's bank name, ABA number, and taxpayer's account number."
Route the voucher to the Philadelphia RFC at the address below:
Federal Building - ATTN: FEDLINE
5000 Wissahickon Ave
Philadelphia, PA 19144Once the refund voucher has been forwarded, the case file is returned to the originating organization for further processing. The originating organization is also informed when the Regional Financial Center (RFC) support listing confirms the receipt of the refund after being wired by Philadelphia RFC.
3.17.79.8.10 (12-03-2019)
Refunding From 20x1807 Account, A Miscellaneous Revenue Account
Refunds from the MISC Revenue account includes disbursements for lockbox banks, credit card charge-backs, Passive Foreign Investment Company (PFIC) and Arbitrage rebates (Form 8038-T ONLY).Exhibit 3.17.79-4
Treasury Financial Management: Part 6 Chapter 3000 Section 3050-Payments from Account 20X1807 Agencies initiating payments from account 20X1807 must do so via the Secured Payment System. An authorized agency certifying officer must certify these payments.
Maintain a file of paid disbursement vouchers (Form 3753) with supporting documents for payments made from this account. Make records available to internal auditors and auditors conducting on-site audits for GAO.
TFM Part 6 Chapter 3000 Section 3050, requires that the IRS provide notification and supporting documentation of refunds totaling over $100,000 (Per SF224). Send e-mail communication to:
Treasury and IRS Contacts Credit Accounting Branch, FASD AC Management Bureau of the Fiscal Service ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Fax to:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Submission Processing Accounting and Tax Payment Branch Manual Refund Headquarter Contacts
3.17.79.8.11 (12-13-2022)
Whistleblower Award Payments
Whistleblower awards are issued under IRC 7623 for individuals who provide information to the IRS related to the detection of underpayments of tax, or to the detection and bringing to trial and punishment of persons guilty of violating the internal revenue laws or conniving at the same.
The authority to determine and approve awards is delegated to the Director of the Whistleblower Office (WO) under Delegation Order 25-7 (Rev 5), IRM 1.2.2.14.7, Authority to make determinations under IRC 7623; receive, analyze, and assign information pursuant to IRC 7623; and disclose information under IRC 6103(k)(13)..
Manual Refund requests of Whistleblower payments will go through the following process:
Initiate funds transfer through Corporate Performance Budget (this transfers funds to the specialty account).
Complete the RACS Memo, Manual Refund Memo, Form 3753, and Form 2424 (if applicable).
Send e-mail to RACS with the memos and Forms for journaling action.
Once e-mail is received back from RACS stating journaling action has been completed the Form 3753 is e-mailed to *W&I SP Manual Refunds Ogden.
After the check is issued the Form 3753 is returned to WO stamped with the date the award check was mailed.
No TC’s are posted to the Whistleblower’s account for the issuance of the check (a TC is input if a portion of the award is applied to an outstanding liability).
Whistleblower awards may be issued via direct deposit if requested by the WO. In addition to following the procedural guidelines in IRM 21.4.4, the following must be included to substantiate an ACH/Direct Deposit (DD) request:
Proof from bank that a savings or checking account exists and it is the account of the taxpayer. Proof may include: a voided check; a letter or memo from the financial institution showing the account holder’s name and account information; a copy of an original tax return signed and accepted by the IRS within the last 3 years that has the routing and account information; or a TRDBV print from a return filed within the last 3 years with the routing and account information, along with a signed attestation from the taxpayer that they would like the funds deposited to the account listed on a prior year return.
3.17.79.9 (12-13-2022)
Preventing Duplicate Refunds
Treasury Inspector General for Tax Administration (TIGTA) and other management internal control reviews cited a high incidence of duplicate refunds. To improve internal controls and reduce these weaknesses, the Service:
Updated IRM procedures to cross-reference (via IDRS TC 971), the TIN and credit source document file locations and indicated on Form 3753 and Form 5792 in the remarks section where the credit and source documents are filed.
Emphasized in correspondence a reminder to all field executives the importance for initiators of manual refunds to monitor accounts (e.g., IDRS in 'B' Status, TC 840) as well as incorporating similar descriptions to research and monitor requirements in the ADP and IDRS Information, Document 6209 Catalog No. 614620, Section 6.
Emphasized to all employees to not close the control base prematurely before the TC 840 posts. This premature closure may allow a generated refund (TC 846) to be released because the account is not being monitored adequately for subsequent transactions to post, allowing a generated refund after releasing the manual refund. The refund processing system allows a pending generated refund (PN 846) to be intercepted or stopped via IDRS CC NOREF (BMF only).
Added procedures in IRM 21.4.4, to update IDRS and to monitor taxpayer accounts, prepare approval documents, input IDRS actions and other commands (e.g., CMODE whether similar account activity is occurring by another employee or in another part of the country). Since these manual refunds are considered high risk and exception-processing, it is imperative that initiators research and monitor accounts to prevent duplicate refunds or erroneous refunds.
To prevent the release of duplicate refunds caused by improper monitoring of accounts and to detect subsequent manual refunds (TC 840), several IDRS changes occurred.
Warning messages on input screens for CC RFUND, "Possible Duplicate RFUND/Request Completed," alerts initiators of the possibility of a duplicate refund. Initiators will not have the option of interrupting CC RFUND prior to end of day runs.
If a duplicate is detected, process it as an erroneous refund per IRM 21.4.5. At Center discretion, cases may be transferred to the area which initiated the error.
Note:
When a duplicate manual erroneous refund has been identified employees must notify Submission Processing Accounting HQ that they are putting together an erroneous refund package by sending an e-mail to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡with a carbon copy to the Manual Refund Headquarter Contacts.
Employees should not close the control base prior to the posting of the TC 840. These inappropriate closing actions may contribute to causing erroneous refunds.
TC 971 AC 664, Manual refund processed by Accounting was created to help mitigate duplicate and erroneous refunds on Form 3753. Presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund is in process.
IRM 21.4.5, and IRM 3.17.80, Working and Monitoring Category D, Unassessed Erroneous Refund Cases in Accounting Operations describe actions the Internal Revenue Service may take to identify, track and recover erroneous refunds. Only the cases deemed as a Category D (erroneous refunds, which are unassessable refunds) should be forwarded for recovery to Accounting. These are limited to right of offset, voluntary repayment and requests to Compliance to recommend filing civil suit.
Provide feedback to areas causing erroneous refunds to occur. Providing feedback is considered a method of maintaining internal controls. Feedback is also a mechanism in documenting to management officials the areas causing trends in error rates, and requiring them to take corrective actions.
3.17.79.10 (07-18-2014)
Cancelled Refund Checks (Standard Form or SF1098)
During processing, it may be necessary to stop a refund via CC NOREF for BMF only (See IRM 3.14, Notice Review).
The refund is cancelled by the RFC and the cancellation credit for the item is returned via Standard F1098 Schedule of Cancelled or Undelivered Checks. The Reason Code 01 indicates the refund was stopped via CC NOREF (BMF only).
The credit will systemically post to the taxpayer module as a TC 841 and set a "P " Freeze on the module.
Cancellation credits are returned to IRS via Standard F1098 (Reason for Return Code) and post back to the taxpayer's account as Master File TC 841. See IRM 3.17.79.10.1.1, Standard Form (F1098) - Reasons for Return (RC) Codes from Bureau of the Fiscal Service (BFS).
3.17.79.10.1 (01-01-2015)
Treasury Checks Returned to the Submission Processing Center and Regional Financial Center
Refund checks are returned to Regional Financial Centers for reasons other than being "undeliverable" . Taxpayers may return tax refund checks directly to the local offices or to Submission Processing Centers and at times may even return them directly to the RFC. Tax refund envelopes have the return address of the issuing RFC.
Master File (MF) and Automated Non-Master File (ANMF) refund checks returned to the Submission Processing Center must be cancelled and be stamped "Not Negotiable" by Refund Inquiry function or Deposit function and forwarded to the RFC for cancellation as outlined in IRM 21.4.3, Refund Inquiries - Returned Refunds/Releases. The RFC prepares Standard F1098 Schedule, Standard F1098 listing for the MF, ANMF, Photocopy Fee, and IRAF refund cancellations.
The cancelled MF 1098 cancellation credits are returned from RFC's to Enterprise Computing Center (ECC) - Martinsburg, for posting to taxpayer's accounts. The confirmed Standard F1098 and related "F1098 listing" (includes Treasury Financial Service (TFS) 145/EFT/DD and 1185/Check Claims credits) on cancelled ANMF, Photocopy Fee, and IRAF refunds.
The "F1098 listing" provides a summary of each cancellation by type and Reason for Return Code.
3.17.79.10.1.1 (01-01-2013)
Standard Form (F1098) - Reasons for Return (RC) Codes from Bureau of the Fiscal Service (BFS)
The following types of credits may be included on an "F1098 listing" for MF, ANMF, Photocopy Fee and IRAF refund check cancellations.
Available Check Cancellation (ACC) credits for undeliverable refund checks (returned by the U.S. Postal Service); returned checks (from taxpayers or TP representatives); and intercepted refund checks (intercepted at Submission Processing Center request by the Regional Operating Center).
Rejected SUPER/Direct Deposit refunds (i.e., Electronically Filed Returns (ELF)), which are controlled on TFS Form 145 (tape processing).
Unavailable Check Cancellation (UCC) credits returned under Recertification which Check Claims determines a check is still outstanding, and are controlled on TFS Form 1185 (tape format). These credits are returned to ECC as a result of an Unassessable or Check Claim (Form 1184 via IDRS Command Code CHKCL) .
Reason for Return Codes shown on the Standard F1098 listing identify the type of the cancellation or credit as follows:
Code 01 Checks intercepted by request (CC NOREF or refund holds). Returned by the Regional Financial Center (RFC), these credits will post as a TC 841 with a unique blocking series of "55555" and set a "P-" Freeze.
Code 02 Checks returned to the RFC by the U.S. Postal Service as undeliverable. These credits will post as TC 740 credit with a "99999" blocking series and sequence number and set an "S-" Freeze.
Codes 03, 08 or 10 (All other codes not listed). Returned checks other than undeliverable will post as TC 841 credit, Code 8 with a "88899" and Code 3 with a "99999" blocking series and sequence number and set a "P-" Freeze.
Code 09 Unavailable Check Cancellation Credit/Recertification credit returned as a result of non-receipt claim (IRS Form 3911, Taxpayer Statement Regarding Refund or input of CC CHKCL/SF1184). This credit is returned after both the RFC and BFS Check Claims Group determines the check is still outstanding. These credits post as a TC 841 with a unique blocking series and sequence of "88888" and do not set a "P-" Freeze.
Code 09 Reclamation credit. Credit returned as result of a non-receipt claim after adjudication by the Check Claims Group reclaims the amount from the financial institution. No Freeze, TC 841 with unique blocking series and sequence of "88000."
Code 09 Outstanding check. Credit returned as the result of a paper check claim (Form 1184). No Freeze, TC 841 with unique blocking series and sequence of "88111" .
Code 11 Taxpayer correspondence attached or cancelled Photo Fee refunds, that would not post back to the Master File. If Photocopy Fee Refund (Form 4506) Send taxpayer correspondence to Photocopy Fee function with supporting cancellation (Standard F1098) documents.
Code 40 Limited Payability (LP). Expired check credit. Posts S- Freeze, TC 740 with unique blocking series and sequence "66666."
Electronic Fund Transfer (EFT) 60 Invalid/missing Routing Transit Number (RTN).
EFT 61 Invalid/blank bank account or account type (c) checking or (s) savings.
EFT 62 Direct Deposit Check receiving financial institution non-ACH participant.
EFT 63 EFT payments without financial organization address on Financial Organization Master File (FOMF).
Code 71 Unavailable check cancellation offset. Code returned as a result of an agency claim, only the Treasury Offset Program (TOP) offset amount of the original payment is returned. See IRM 21.4.6. Transaction Code 841 with unique blocking series and sequence "88888" .
Code 72 Unavailable check cancellation partial payment. As a result of an agency claim, only the net amount of the original payment is returned following the TOP offset (See IRM 21.4.6). Transaction Code 841 with unique blocking series and sequence "88888" .
Send all other taxpayer correspondence to Refund Inquiry with supporting cancellation documents.
See Exhibit 3.17.79-8, Reason for Cancellation Codes, for further information.
3.17.79.10.1.2 (12-06-2016)
Confirmed Standard F1098 Cancellations from Bureau of the Fiscal Service (BFS)
Receive confirmed copy of Standard F1098, Schedule of Canceled or Undelivered Checks, from the RFC with listings on MF cancellations. Within 10 workdays of receipt of the Standard F1098:
Verify total on Standard F1098 with total of F1098 listing. If there is a difference, contact the Regional Financial Center and resolve the discrepancy (See IRM 3.17.79.10.7, Incorrect Cancellation Amounts).
Journalize as outlined in IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System.
Route one copy of the F1098 schedule and F1098 listing to the Refund Inquiry function.
Route one copy to the Notice Review function and one copy to the Correspondence function. Correspondence function will associate the Standard F1098 to any correspondence received from the taxpayer or his representative. The RFC will record the SSNs and EINs on letters before forwarding correspondence to IRS.
Receive confirmed F1098 schedule from the Regional Financial Center along with the F1098 listing on ANMF, Photocopy Fee, IRAF cancellations. Upon receipt of confirmed cancellation schedules:
Verify total of F1098 schedule with totals of amounts shown on F1098 listing. If there is a difference, contact the Regional Financial Center and resolve the discrepancies (See IRM 3.17.79.10.7 for procedures).
Control all accounting documents through the Redesigned Revenue Accounting Control System (RRACS) (Refer to IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System).
Research using the copy of SPS/Form 1166 Voucher and Schedule of Payments and supporting refund documents (Form 3753/Form 5792) showing principal and interest, File Location Code or Universal Location Code, item count and line number on the Net Tax Refund Report. In extremely rare cases, this same research must be accomplished on Form 1081, SF1184 and TFS Form 3813.
Prepare Form 3245, Posting Voucher-Refund Cancellation or Repayment, for each taxpayer indicated on the F1098 listing, except for Photocopy Fee refund cancellations. For all Code 2 check cancellations, input TC 740 in the amount of the undelivered refund. For all Codes 3, 8 or 10 check cancellations, input TC 841 in the amount of the returned refund.
Prepare Form 813.
Forward Standard F1098, Form 813, Form 3245, abstract documents and NTRR information for input to RRACS.
Note:
Form 1664X or listing that has been processed will be forwarded to the Taxpayer Relations function.
File copy of Standard F1098 in a Suspense File for monthly preparation of Net Tax Refund Report (NTRR) for balancing purposes.
File original Standard F1098 in the closed file for balancing and for the monthly preparation of the NTRR.
Forward one copy of the F1098 Schedule, F1098 listing and refund document (e.g., Form 3753 or Photo Fee listing) for Photocopy Fee refunds to the Photocopy Fee/RAIVS function.
Should F1098 Listing not arrive in the Accounting area within a reasonable amount of time, search within the Center (e.g., Refund Inquiry, Notice Review, Photocopy Fee/RAVIS Units or other Accounting Operations work areas) before seeking a replacement.
If F1098 Listing does not arrive within two (2) weeks of downloading schedules from CARS/IPAC, contact ECC (through User Support or the Help Desk) to ensure the cancellations were posted to Master File. If unable to locate, open an Enterprise Help Desk or Knowledge Incident/Problem Service and Asset Management (KISAM)Ticket and assign it to EOPS-ECC-ECPV-PROCESSING VALIDATION.
Address requests from Chief, Accounting Control/Services Operations for additional copies of Standard F1098 Schedules/Listings to: Chief, Processing Validation Section, Enterprise Computing Center (ECC) - Martinsburg, OS:CIO:I:EO:MC:O:W:PV, Stop 535, 250 Murall Drive, Kearneysville, West Virginia 25430.
Provide the CARS/IPAC confirmation dates, item count, dollar amounts and refund schedule numbers in correspondence sent to ECC.
Managers or Seniors should provide guidance when F1098 Listings do not arrive in your function timely. Contact ECC only after exhausting your search in other areas of the Center as they may have been mis-routed within your own Center.
The guide used by the Extraction function or the Media Transport IRM may assist you in locating routing designations for documents.
Center Accounting Operations must carry unresolved Standard F1098 refund cancellations journal actions on the RACR into the following month if the F1098 Listing has not arrived by month-end.
3.17.79.10.1.3 (01-01-2015)
Tax Forms Standardization (TFS) 3813, Schedule of Uncollectible Checks
The Regional Financial Centers complete TFS Form 3813 to document corrections to payment references. All TFS Form 3813 contain sufficient cross-reference information to identify items corrected and the reason for the correction.
FMS Form 3813 reverse previously cancelled items; debits the agency; is followed by another Standard F1098 to correct the cancellation. With some variations at specific Regional Financial Centers, both actions occur on a weekly basis.
The RFC will enter the following information on the Form 3813.
BUREAU SCHEDULE: Number - This is the number and date of the original cancellation. This can be used by the agency to locate the cancellation that is being reversed.
BUREAU SCHEDULE: Date - This is the date and number of the deposit ticket that was used to transmit cancellations, including the ones that have rejected.
O/D, NO., DATE AND AMOUNT - Date of Form 5515, Deposit Voucher.
CHECK DESCRIPTION, REMITTER, AND REASON FOR RETURN - This column provides the reason for the reversal and the full description of the payment.
AMOUNT OF CHECK - Amount of the payment being reversed.
SYMBOL OF FUND TO BE REDUCED - Agency appropriation fund that is being reduced.
3.17.79.10.2 (01-01-2015)
Processing Intercepted Refund Checks (Reason for Return Code 01)
Master File checks (TC 846) are cancelled and controlled under Standard F1098, Schedule of Cancelled Checks, and forwarded to ECC on tape for posting TC 841's to the taxpayers’ accounts. These checks are listed on Standard F1098, and forwarded to the appropriate Submission Processing Center Agency Location Code (ALC) to be used in posting credits to taxpayer accounts.
ANMF, IRAF and Form 4506 Photocopy Fee, checks which are pulled or intercepted are cancelled and controlled under Standard F1098. The Standard F1098 schedule and listing are forwarded to the ALC. Accounting Operations forwards a copy of the F1098 schedule and F1098 listing reflecting Photocopy Fee (4506) cancellations to the Photocopy Fee/RAIVS function. IRM 21.2.5, Miscellaneous Forms and Processing, was updated requiring Units to maintain these credit documents for research and subsequent re-issuance of the Photocopy Fee Refund if correspondence is received from the taxpayer. Prepare Form 3245 for all other cancellations with the following information:
Posting Voucher - enter two-digit FILE LOCATION Code from ENMOD or CFOL
SSN/TIN - enter SSN or EIN with an "N" if NMF or "P" if IRAF
Return Period - enter TAX PERIOD (YYYYMM)
MFT - enter applicable MFT
Name - taxpayer's first and last NAME and underline the NAME Control
Remarks - enter comment to include the following: Reverse TC 846 or TC 840 (MMYYYY), intercepted - Code (X) SF 1098 number (XXX-X-XXX)
Cancellation Column
Schedule date - enter the date of the TC 846 or TC 840 (MMDDYYYY)
TC - enter TC 841
Amt of Check - enter the AMOUNT shown on the SF 1098 listing
-
Check Number - enter refund check number
Schedule Number - enter refund schedule number
Repayment Column
Date Received - Blank
TC - Blank
Amt of Check - Blank
TC - 772
Interest - enter the amount of overpayment interest paid as the TC 772 amount (NMF ONLY)
Date - enter current date (MMDDYYYY)
Employee ID/Badge - enter preparer’s SEID and initials
This voucher relates to - Check the "Other" box and enter SF1098
Document Locator Number - stamp with DLN as follows: Digit 1-2 Universal Location Code, Digit 3 Tax Class, Digit 4-5 Doc Code 45, Digit 6-8 Current Julian Date, Digit 9-11 Blocking Series 555, Digit 12-13 Serial Number, beginning with 00, Digit 14 Current list year
Note:
The DLN Blocking Series for these cancellation credits (Digits 9 through 13) will always be "55555" .
3.17.79.10.3 (01-01-2015)
Returned Check Cancellations - Manually Prepared Individual Master File (IMF) and Business Master File (BMF) (RRCs 02 and 03)
Code 02 Within 10 workdays of receipt of the Standard F1098 schedule and Standard F1098 listing, prepare Form 3245, Posting Voucher-Refund Cancellation or Repayment, for all Code 02 check cancellations to input a TC 740 in the amount of the undelivered refund.
Stamp "Refund Check Cancelled" on applicable Refund Schedules (1166/1167) and supporting refund document (Form 3753, Form 5792, and/or Refund Voucher List).
List on Form 813, Document Register, all Form 3245 having the same Office and Tax Class codes. Hold these documents until all work on Standard F1098 is complete, then route the original copy of the Form 813 with Form 3245 to Batching and Numbering.
Forward Standard F1098 schedule, Standard F1098 listings, and all supporting refund documents for undeliverable refunds (Code 02) to Refund Inquiry.
Forward second copy of Form 813 for input to RRACS for journal action.
Code 03 Within 10 workdays of receipt of Standard F1098 Schedule and Standard F1098 listing, prepare Form 3245 for all Code 03 check cancellations to input TC 841 in the amount of the returned check.
On Form 813, list all Forms 3245 (See Exhibit 3.17.79-7), Blocking Series Chart for Document Code 45, Standard F1098 and TRACS Processing having the same Office Code (formerly known as DO)/Business Operating Division (BOD)) and Tax Class codes. Hold these documents until all work on the Standard F1098 is complete, then route the original Form 813 with Form 3245 to Batching and Numbering.
Forward for input to RRACS for journal action.
3.17.79.10.4 (01-01-2015)
Processing Returned Automated Non-Master File (ANMF) Checks
Within 10 workdays of receipt of Standard F1098, associate refund documents (e.g., Form 3753, Form 5792, Form 1331-B, and/or Refund Voucher List), and accompanying forms (e.g., SPS or Form 1166) with the Standard F1098 Schedule and Standard F1098 listing.
Stamp "Refund Check Cancelled" on applicable Refund Schedules (SPS or Form 1166), and supporting documents (Form 3753, Form 5792, Form 1331-B, and/or Refund Voucher List).
Cancelled Refund Schedules are photocopied (three copies). Taxpayer correspondence and any other attachments are also photocopied.
Forward one copy of Standard F1098 Schedule, Standard F1098 Listing and cancelled refund documents with the original Standard F1098 Schedule and F1098 listing to the RRACS function for journaling. The copy is returned with a second journal number to be retained for future reference.
one copy of Standard F1098 Schedule, Listing and cancelled refund documents is kept in Suspense File. Destroy this copy upon receipt of journaled copy.
one copy of the Standard F1098 Schedule, listing and cancelled refund documents is routed to the Photocopy Fee function if refunds on the F1098 are photocopy fee refunds (Form 4506).
one copy of the Standard F1098 Schedule, Standard F1098 Listing and cancelled refund documents are routed to Refund Inquiry if refunds are undeliverable refunds (Code two).
Some refunds require "special handling" by Refund Inquiry (Form 3913, Acknowledgment of Returned Refund Check). These refund cancellations require an additional copy to be forwarded to the requesting Tax Examiner in the Refund Inquiry function.
Processing Form 1331-B.
Prepare Form 4338 (Information or Certified Transcript Request). Submit completed form to ANMF function to request a photocopy of the ANMF Transcript.
Upon receipt of the copy of the ANMF Transcript, prepare Form 3245. Use TC 841 for Codes 03 and TC 740 for Code 02. Verify information on Form 3245 with ANMF Transcript and Form 1331-B. Photocopy (three copies) of the ANMF Transcript and Form 3245. Associate with photocopies of the Standard F1098. Associate Form 3245 and ANMF Transcript with original Standard F1098 Schedule, listing and cancelled refund check documents.
Prepare a Document Transmittal to route the original Form 3245, ANMF Transcript, original Standard F1098 Schedule, Standard F1098 Listing and cancelled refund documentation to RRACS for journaling.
Forward the Form 3245 with a copy of the Standard F1098 to ANMF Accounting.
The journaled Standard F1098 Listing is forwarded to the Refund Inquiry function for processing as outlined in IRM 21.4.1, Refund Inquiries.
3.17.79.10.5 (01-01-2015)
Returned Individual Retirement Account File (IRAF) Checks
Changes to the MFT were revised in 2005 to allow IRAF overpayments to be computer generated. In the meantime, there could be instances when Centers receive these returned items issued prior to 2005.
Prepare Form 3245 for each cancellation credit reflecting returned IRAF checks, within 10 workdays of receipt of Standard F1098 Schedule and F1098 Listing.
The transaction code for Form 3245 depends on the Reason for Return Code displayed on the Standard F1098 Listing. Some Codes 02 cancellations require input of TC 841.
Prepare Form 813 for all Form 3245 containing the same Office Code (formerly known as DO/Business Operating Division (BOD) and transaction codes. Route original Form 813 and corresponding Form 3245 to Batching and Numbering for processing.
Forward original and copy of Standard F1098 Listing and duplicate copy of the Form 813 to RRACS for journaling.
All Standard F1098 Listings should be noted by the RRACS Journaling function as "deposited" and routed for filing.
3.17.79.10.6 (12-13-2022)
Correcting Erroneously Posted Transaction Code (TC) 841
Due to systemic problems (e.g., cancelled for wrong check number or with the incorrect check symbol number, etc.), the Bureau of the Fiscal Service, Regional Financial Center (RFC) may advise the Internal Revenue Service to correct a payment cancelled in error by the RFC . These items may require reversal through the input of a TC 843. A Treasury TFS Form 3813, Schedule of Uncollectible Checks, will be received from the RFC to correct this information explaining the nature of the correction.
When TFS Form 3813 is received, research 4970 Account for a matching credit.
IF THE CREDIT... THEN... Is there Write "No Second Journal Needed" on the Form 3813 by the taxpayer name/TIN.
Photocopy Form 3813 and retain within the team for possible future reference or until the RRACS journal action has been completed and the transaction TC 843 has posted.
Note:
Once the TC 843 is posted, the original TFS Form 3813 will be permanently filed the photocopy can be treated as classified waste..
.Prepare Document Transmittal and attach to TFS 3813 and forward to RRACS for journal action
Is not there Research IDRS or Standard F1098 listings in Suspense File for a matching TC 841.
If no data on IDRS, request IMFOL, research CFOL, or complete MFTRA for each taxpayer listed.
Determine which MFT and tax period the TC 843 should be processed against.
To correct erroneously posted TC 841:
Prepare Form 3245 for each correction. When inputting the TC 843, use the date and amount of the related TC 841.
Enter in remarks section of the Form 3245 the explanation for the correction as indicated on the FMS Form 3813.
Create an open control on the IDRS tax module and monitor until the TC 843 posts.
When the TC 843 is pending, input a TC 470, using CC REQ77.
Monitor the tax module using TXMODN (notice information) at the beginning of each cycle. The posting of the TC 843 will put the taxpayer into debit balance. If necessary, contact the Notice Review function to intercept the first balance due notice.
Establish a case folder and monitor the tax module until BFS/RFC returns the good credit. Input additional TC 470(s), if the original will expire prior to the posting of the credit. When the credit has posted, close the IDRS control base and destroy the case file.
When received from the RFC, credit items are journaled into the 4970 Account.
The TFS Form 3813 should provide necessary information about the reason for the TFS 3813 reversal and when the Standard F1098 should be forwarded to the Submission Processing Center Agency Location Code (ALC) by the Regional Financial Center (RFC).
Input additional TC 470(s) if the original notice holding code will expire prior to the posting of the credit.
Monitor case files and tax modules of pending items each month or until the RFC returns credits (TC 841) or the corrected Standard F1098, Schedule of Uncollectible Checks arrives.
If the Standard F1098 is not received by the next accounting period, follow-up with the RFC. Request that the Standard F1098 be forwarded. Document pending items in the case file for any further action. Update IDRS as necessary to reflect any follow-up actions.
Continue monthly monitoring of case files. If credits are not received by the next accounting period, initiate necessary further correspondence with the issuing Regional Financial Center. Document circumstances and place in case file.
Addresses for the respective Regional Financial Center appear in Exhibit 3.17.80-5.
When credits post, close the IDRS control base and destroy the case file. Input the following:
3.17.79.10.7 (07-27-2015)
Incorrect Cancellation Amounts
If a TC 841 or TC 740 amount shown on the Standard F1098 tape or listing is input to a taxpayer module and the cancellation amount does not match the amount of the corresponding TC 840/846, the credit will not post to Master File except as noted below. The Refund Inquiry or Unpostables function will advise Accounting Operations when these differences in amounts or money mismatches (MM) occur.
There are two types of offset: Tax Offset and Treasury Offset Program (TOP) Offset (See IRM 21.4.6, for further information).
A TC 841/740 can be less than the original refund amount if a Treasury Offset (TOP) TC 898 has occurred.
BFS should reverse all offsets with a cancelled refund amount and return the entire amount of the original TC 840/846 to IRS. However, BFS will deduct from the original refund any portion of the offset previously reversed by IRS (a TC 766 with Offset Trace Number, OTN) and/or previously refunded by the agency (a TC 899, type 2 and 3, less TC 899, type 4) with same OTN's as the TC 898(s) offset.
Unpostable Code (UPC) 138 criteria will incorporate the TOP TC 740/841 conditions, for different money amounts. See TOP procedures in IRM 21.4.6.5.22, Returned Refund Check.
Resolution of UPC 138 are no different than previously, except when TC 898 is present. See further references in the TOP IRM 21.4.6.
If TC 841 on module is due to Identity Theft (IDT), see procedures in 3.17.80.2.2, Resolving Cases with TC 841 Posted.
Note:
If research indicates a TOP Offset was done, use TC 720 with date of the refund and the blocking of the returned refund (i.e., 55555 use 55x, 66666 use 66x, 77777 use 77x, 88888 use 88x and 99999 use 99x).
Accounting Operations will initiate correspondence to the issuing Regional Financial Center (RFC) to advise them that a cancellation credit has been received for an amount different from the original check amount. The correspondence should request that the RFC immediately issue a TFS Form 3813, Schedule of Uncollectible Checks, to reverse the incorrect amount and to issue a Standard F1098 for the correct amount.
Include the following information in the correspondence:
Taxpayer's name
SSN/EIN
Cancellation credit amount as shown on the Standard F1098 listing
Correct amount as shown on the taxpayer module
Check symbol
Check number
Standard F1098 schedule number
Standard F1098 date
To determine the correct amount when a TOP offset has occurred:
Look for TC 898.
Subtract any TC 899 type 2 or 3 and TC 76X from TC 840/846 amounts.
Add any TC 899 type 4.
All of these transactions must have the same Offset Trace Number (OTN) as the accompanying TC 898.
Disregard all signs when adding or subtracting the transaction amounts from the original refund.
See IRM 21.4.6.5.22, Returned Refund Checks.
Route the correspondence to the issuing Regional Financial Center (See Exhibit 3.17.80-5 for list of RFC mailing addresses). Format the address of such correspondence to the Payments and Claims Branch.
Establish a control base on IDRS as follows:
ACTON
C#,MMLTRTORFC,M,MISC
*,*Monitor the case until the TFS Form 3813 is received from the Regional Financial Center. When received, prepare Form 3245 to input TC 843 or TC 742. Update the control base to show that TFS Form 3813 has been received as follows:
ACTON
C#,3813RECD,M,MISC
*,*If the correct cancellation credit is received but the FMS Form 3813 is not (or vice versa), immediately contact the appropriate RFC by telephone and request the missing document.
Credits will be journaled to the 4970 Account during research and until FMS Form 3813 is received. After FMS Form 3813 (debit) is received from the RFC, it will cancel the incorrect amount of the Standard F1098 held in the 4970 Account.
Monitor for receipt of the reissued/corrected Standard F1098. Follow-up with the RFC may be required.
When the correct Standard F1098 and/or TC 841 is received and posted, close the control base as follows:
ACTON
C#,TC841PSTED,C
3.17.79.11 (01-01-2014)
Undeliverable Refund Check (Transaction Code (TC) 740, S- Freeze) Cancellations
Refund checks are returned to the Regional Financial Center (RFC) by the U.S. Postal Service when they cannot be delivered. U. S. Postal Service returns the check to the Bureau of the Fiscal Service (BFS) Regional Financial Center (RFC) to be cancelled and the credit returned to the agency who initiated the disbursement. The majority of tax refunds are issued by the Regional Financial Center.
The RFC cancels the undelivered checks and returns credits to IRS Enterprise Computing Center (ECC) - Martinsburg via Standard F1098 cancellation credits.
These credits post to Master File as TC 740; set an S- Freeze, and generate a notice to the taxpayer (CP 31 through CP 231) that the tax refund was returned as undeliverable.
At times, the RFC may return credits with the incorrect Reason for Return Code which is interpreted incorrectly when posting to the Master File and may or may not Freeze the account accordingly. If this occurs in error, posting corrections to taxpayer accounts must be handled manually. These procedures refer to other sections of the IRM to process these credits.
3.17.79.11.1 (01-01-2013)
Undeliverable Enterprise Computing Center - (ECC-MTB) for Code 02/TC 846) Individual Master File (IMF)/Business Master File (BMF) Refund Check Cancellations
The Regional Financial Centers receive, cancel, and code undeliverable IMF/BMF ECC computer generated (TC 846) refund checks as outlined in IRM 3.17.79.10.1, Treasury Checks Returned to the Submission Processing Center and Regional Financial Center.
The Regional Financial Centers transmit to ECC all computer generated (TC 846) undeliverable refund checks (Reason for Return Code 02) for posting TC 740 with S- Freeze, in the amount of the check to the taxpayer's account (both IMF and BMF) and sorted by Agency Location Code (ALC). This is accomplished through the Standard F1098/145/1185 cancellation runs at ECC -MTB. ECC - MTB posts the TC 740 (S Freeze) and forwards taxpayer account data to the Centers for printing Undelivered Refund Check Notices: CP31 for IMF taxpayers; CP231 for BMF taxpayers.
Submission Processing Centers process to RRACS and reclassify as required in IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System.
3.17.79.11.2 (11-19-2015)
Undeliverable Integrated Data Retrieval System (IDRS) Generated Refunds
For IMF/BMF checks, follow the processing procedures contained in the applicable sections of this handbook. Consider that, in some instances, e.g., hardship, decedent cases, it may be necessary to perform CC RFUND procedures.
For BMF checks issued, the Regional Financial Center (ROC) produces Standard F1098 and a related Standard F1098 Listing for the Agency Location Code Submission Processing Center for posting TC 740 to the BMF at MCC.
The Regional Financial Centers produce, Standard F1098 and a consolidated listing of all ANMF, Photocopy Fee Refund and IRAF checks; separate file totals for various program areas:
ANMF and photocopy fee refund check cancellations.
IRAF check cancellations.
See IRM 3.17.79.10.4, Processing Returned Automated Non-Master File (ANMF) Checks and IRM 3.17.79.10.5, Returned IRAF Checks for instructions for preparing Form 3245 to post credits to taxpayer accounts.
Forward one copy of the Standard F1098 schedule and Standard F1098 Listing for Photocopy Fee refunds to the Photocopy Fee function.
Further instructions for processing Photocopy Fee undeliverable refunds are located in IRM 21.4.4.7.1, Photocopy Fee Refunds and IRM 3.5.20.5.1.12.2, Undelivered Refunds and Limited Pay Cancellation.
3.17.79.11.3 (12-06-2016)
Unpostable Cases Received from Rejects/Refund Inquiry (Unpostable Code for example (UPC) 138 RC 0 or UPC 290 RC 5) (UPC and RC can vary)
Input Correction Operation, Unpostable or Reject functions may not be able to correct some unposted Transaction codes (TC) 841, 740 or 843. If this occurs the unposted transaction will be closed with a closing code 1 or 8 to the Accounting function for resolution.
There are several conditions that may cause the unpostable or reject condition. One of the following may have occurred:
Account merged
The refund was moved
Invalid date
Returned refund posted to taxpayer module as a TC 720
Note:
If a TC 720 is posted on the taxpayer module, the TC 720 will need to be moved off the account in order for the TC 841, TC 740 or TC 843 to post. If the TC 720 is on a taxpayer module that contains a TC 971 action code (AC) 134 this is an External Lead case, in the Return Integrity and Compliance Services (RICS). If the unpostable TC 841 is from BFS and Not from an IDT case (DLN blocking series 94X) the TC 720 can be reversed. Contact RICS and request a reversal of the TC 720, due to the unpostable TC 841, TC 740 or TC 843.
Returned refund posted to taxpayer module as a TC 841
Note:
If the posted TC 841 on the taxpayer module is due to an IDT case (DLN blocking series 94X) (See IRM 3.17.243.7.1.1, Resolving Cases with TC 841 Posted).
Thorough account research must be performed to resolve these cases. See If and Then chart below.
These are just a few examples on how we process the documents.IF... THEN... AND... Reprocessing the original Use the same DLN Batch documents and forward to Data Processing Creating a new document Prepare a Form 4028 to 0–2 the original DLN off Batch documents and forward to Data Processing Creating a Dummy Prepare case file Batch documents and forward to Data Processing NOTE: Use the same DLN when possible
Form 4028, Form 813 and case document are taken to Data Control to process the 4028
Batch documents for Data Conversion
Use the same blocking series and Julian date of the unpostable
If Julian date previously used, go to previous date
Forms that we reprocess are Form 3245, Form 3244 or Form 12857
TC 841 with a DLN of XXXXX-XXX-55555-X a NOREF was input
a TC 898 on the account
or the date is incorrect
If a TC 899 on the account, the TC 841 should be posted
If no TC 841 posted, process as TC 670 with a TC 570 to hold the credit
complete Form 4028
TC 841 with a DLN of XXXXX-XXX-66666-X Limited Payability
refund not cashed within 1 year
possibly because the refund has been moved via Form 12857
research IDRS, Form 12857
complete Form 4028
TC 841 or TC 740 with a DLN of XXXXX-XXX-77777-X returned by BFS
see work processes above when DLN XXXXX-X XX-66666–X
TC 841 with a DLN of XXXXX-XXX-99999-X either a returned refund from the taxpayer or an undelivered refund
see work processes above when DLN XXXXX-X XX-66666–X
TC 740 and TC 843 are worked as above Note:
How the unpostable is resolved depends on the reason it unposted. Every effort should be made to resolve Unpostable conditions within 4 weeks of receipt.
3.17.79.12 (01-01-2014)
Treasury's Receivable Accounting and Collection System (known as TRACS)
When Treasury checks are not presented for payment within one year from the date of issue, or when Bureau of the Fiscal Service (BFS) Check Claims activities require that expired credits or debit items be returned to agencies, BFS cancels outstanding checks and returns credits to agencies or sends debit items to the agency's ALC usually via the Form 1081. TRACS is Treasury's automated system to account for, bill and collect for the Bureau of the Fiscal Service, Check Claims and disbursement process.
3.17.79.12.1 (12-13-2022)
Background - Competitive Equality Banking Act of 1987, Public Law 100–86
Competitive Equality Banking Act of 1987, Public Law 100-86, requires that negotiation of government checks occurs within one (1) year from check issuance. If checks are not negotiated, BFS must cancel outstanding checks and return credits to the issuing agency.
TRACS is an automated system implemented by BFS to handle all accounting, billing and collection activities associated with the refund check claims process.
There are three types of transactions issued from BFS:
Funds disbursed via GWA/IPAC;
Funds transferred via Form 1081 (to correct an erroneous CARS transmission); and
BFS Check Claims (Form 1184/CHCKL) transactions where the conversion of data from the previous systems to the new TRACS necessitates using a paper Form 1081.
The system automates summary accounting transactions and supporting detail records previously received via Form 1081, Voucher and Schedule of Withdrawals and Credits, and Form 1081 listings.
Transactions (both debits and credits) are transmitted to agencies via the CARS/IPAC and are journaled upon receipt into the RRACS 4970 Account, Unapplied Refund Reversal Account.
TRACS provides CARS summary transactions to Enterprise Computing Center (ECC) for each Agency Location Code (ALC) for posting credits and debits to the Master File.
Prior to 1993, all Form 1081 transactions were processed manually via Form 3245, Refund Cancellation Posting Voucher, from the Form 1081 listings; sent to DIS for input; and were posted to Master File.
TRACS Miscellaneous listings and systemic processing difficulties experienced by either IRS or BFS still require manual processing via the Form 3245.
3.17.79.12.1.1 (12-06-2016)
TRACS Detail Tapes, Types of Central Accounting Reporting System (CARS)Transmission Credits or Debits
TRACS detail tapes follow CARS transmissions. These details are sent to Enterprise (formerly Martinsburg) Computing Center (ECC) for direct Master File posting to taxpayer accounts. Enterprise Computing Center (ECC) - Martinsburg, transmits data to Submission Processing Centers for printing detail listings of IMF, BMF and Miscellaneous transactions. IMF and BMF transactions post directly to taxpayer accounts. Miscellaneous listings (Non-Master File, IRAF, Photocopy Fee Refunds, etc.) require manual posting actions. Form 3858, Payments Over Cancellation (POC) claims packages, are mailed to the Submission Processing Center Agency Location Code (ordinarily RRACS Accounting Operations area) address appearing on the Form 3858.
Limited Payability Cancellation (LPC) Credits provided monthly generate TC 740 with block and serial number "66666" and set an "S-" Freeze and generate Master File Transcripts LPCANCEL. These transcripts can be destroyed when received per "Note:" in IRM 21.4.2.1.8, Refund Inquiries - Refund Trace and Limited Payability, Limited Payability Computer Paragraph (CP) 32/237.
Reclamation (REC) Credits provided monthly generate TC 841 with block and serial "88000" and are the result of a Form 3911 non-receipt claim resulting in the recovery of funds through the banking system on forged checks. In cases where BFS cannot recover funds, no credit will be returned to IRS, even though they authorize settlement with the taxpayer. Procedures for handling this situation are included here.
Unavailable Check Cancellation (UCC) Credits provided daily, when they occur, generate TC 841 with block and serial "88111" and set a P- Freeze. These transactions are credits returned on outstanding checks as a result of a non-receipt claim submitted via paper Form 1184.
Payments over Cancellation (POC) Debits provided daily, when they occur, post to Master File and generate TC 843 with block and serial "55111 " . Accounting employees must monitor cases upon receipt of listings and/or Form 3858 claims packages to ensure no notices are issued to taxpayers by input of TC 470 hold codes. IMF and BMF Master File transcripts "PMTOVERCAN" , generate for the tax module only to which the transaction posts to reverse the accompanying TC 841. Form 3858, Claims Document, FMS Form 1133, Claim Against the United States for the Proceeds of a Government Check, and a photocopy of the check (front and back) are forwarded from BFS Accounts Branch to the respective Agency Location Code (ALC) address. The ALC address appears on the Form 3858 (See 3.17.80.2, Processing Payments over Cancellation (POC)).
ECC sends control file 793-12 detail records of all type transactions weekly (cycle) to Submission Processing Centers. SP Centers produce three (3) copies of these listings and forward to Accounting Operations area for distribution and posting actions.
Maintain a log of all incoming CARS transmissions and TRACS listings for balancing. Include:
Received dates;
Document Reference Numbers (Schedule Numbers);
Type of Transaction;
Dollar amount;
Number of items or cycle;
Date completed and forwarded to RRACS for final journal action.
For control purposes, TRACS listings should be date stamped when received.
If TRACS listings are not received by Accounting within 2 cycles from the CARS billing date or upon receipt of RACR, at Submission Processing Center discretion, contact the Processing and Validation Section (PVS) at ECC. This time frame should be sufficient for BFS, Accounts Branch in Hyattsville, MD to ship TRACS detail tapes to ECC, for ECC to process to Master File, transmit via CA-Dispatch and for Submission Processing Centers to print the listings.
Note:
See Exhibit 3.17.79-4 for list of BFS Contacts.
Accounting closely monitors receipt of TRACS listings after receiving CARS transmissions. CA-Dispatch (Job 793-12) is transmitted from ECC each cycle. This data is retained for 30 days from the received date by computer rooms. Immediate follow-up ensures the file is still in retention by either ECC or the SP Center computer room and can be reprinted, if necessary.
Accounting employees must be familiar with internal SP Center routing and distribution of computer room print jobs.
If listings are not received: Contact the Help Desk and ask for the ticket to be assigned to EOPS-ECC-ECPV-PROCESSING VALIDATION. Provide the Job Number (79312), IPAC or CARS billing date, type of cancellation (POC, REC, UCC or LPC), and cycle. Reel numbers from ECC enable PVS to research file receipt and production records or research with ECC by cycle.
ECC can re-transmit router run files provided the request is received within retention period.
If the router run file cannot be located, Production Support will contact ECC for guidance.
TRACS data received by ECC should contain "Z60 xxxxxx" Schedule/CARS billing numbers.
To prevent duplicate posting situations, schedule numbers with sequence Z601 xxxxx received by ECC will not be processed by ECC until the Accounting TRACS Coordinator in the respective Submission Processing Center verifies that the data should be processed.
BFS Accounts Branch will hand write an "R" on the TRACS tape label for recreated data.
BFS has sent some TRACS tapes and paper Form 1081 documents and listings for the identical schedule. Corrected IPAC/CARS items cannot be corrected systematically. These paper Form's 1081 schedule numbers are preceded with "B" , followed by 700xxxxx (B700xxxxx).
Some items were incorrectly entered into the TRACS database causing duplicate TRACS tapes with a paper Form 1081.
Money amount discrepancies between IPAC/CARS transmissions and listings and Form 3858 check copy packages should be communicated to HQ.
If the discrepancy exists between Processing Validation Section (PVS) and SP Center journal actions, Accounting Operations may wish to correspond with ECC. The memorandum should be addressed to:
Chief, Processing Validation Section
OS:CIO:EO:EC:OS:W:PV1
Enterprise Computing Center
Mail Stop 1230
250 Murall Drive
Kearneysville, WV 25430Provide the TRACS schedule number, the type of cancellation, the money amount and the IPAC/CARS confirmation date. This provides ECC with sufficient information to research for the cycle the file was transmitted.
3.17.79.12.2 (12-13-2022)
Processing Reclamation Credits (REC)
When a refund check has been cashed and forgery is involved, Check Claims Group will adjudicate the claim. Once the adjudication process is completed and the funds are recovered from the financial institution, credit is forwarded to IRS' Budget Clearing Account. Monies recovered, as the result of the adjudication process, are called reclamation credits.
When a set of TRACS reclamation credit listings (IMF, BMF and Miscellaneous) is received, record information and verify that:
The schedule number and total money amount of the three listings matches the IPAC transmission.
The Submission Processing Center Agency Location Code (ALC) is correct.
All taxpayer information is provided.
Immediately contact BFS Accounts Branch by phone at (202) 874-7920 and inform them if:
Taxpayer identifying (Payee ID) information is missing or incorrect (SSN, EIN, or name).
Amount of the CARS/IPAC transmission does not equal the total amount of the TRACS listings.
Detail tapes and listings do not follow CARS/IPAC transmission in a timely manner, within the next month's accounting period.
To trace detail records, Schedule Number (Document Reference No.), and money amount from CARS transmission is provided to BFS. BFS will research and provide the transmission date information, item count and other information for tracking the transmission further with Enterprise Computing Center (ECC) - Martinsburg.
Reel numbers (transmission id) enable research in retention areas.
If tracing is unsuccessful, a written memorandum request from the Manager, Accounting Operations to the Financial Management Service for recreated data is required as follows:
Financial Management Service
ATTN: Manager, Accounts Branch
Room 700-E
3700 East-West Highway
Hyattsville, MD 30782The memorandum should state: IRS TRACS tape replacements are needed for the (Site), Submission Processing Center, ALC 2009XXXX. ECC did not receive the tapes. A replacement tape or the hard copy (paper Form 1081), must be sent to process the IPAC Bills, and include the information as follows:
IPAC Bill Number
Date
Type
Count
Item $Amount
Form 3858 Needed (Yes/No)
BFS will:
Provide the missing data.
Reverse the charge and, if appropriate, issue a corrected Form 1081.
Take the necessary actions to correct any differences when the amount shown on the TRACS listing and the CARS/IPAC transmission differ; or
Take other appropriate action.
Note:
Corrections to CARS transmission or TRACS listings will be done via paper Form 1081. Such corrections cannot be transmitted via CARS yet.
Occasionally, an amount shown on the TRACS listing may differ from the TC 840/846 amount shown on the taxpayer's account. When this occurs, immediately contact BFS Accounts Branch in writing to inform them of the discrepancy. Attach a copy of the print from the CARS transmission, the TRACS listing and a photocopy of the refund check (or any other documentation available showing the correct check amount) and forward to the address shown above. 3813
Upon completion of BFS' review, corrective action is taken to initiate an Form 1081 for the difference.
If no response is received from BFS within 6 weeks, follow-up in writing.
If follow-up procedures outlined above in IRM 3.17.79.12.1, Background - Competitive Equality Banking Act of 1987, Public Law 100–86 , are unsuccessful and questions or problems concerning TRACS cannot be resolved between the Submission Processing and BFS, contact the National Office for assistance.
All processing for TRACS listings must be completed within 10 work days from the received date. The TRACS listing from ECC, provides an individual breakdown by taxpayer.
Verify that the sum of the totals on the IMF, BMF and Miscellaneous listings match the total cancellations on the corresponding TRACS listing, and that the total matches the CARS/IPAC amount.
If a discrepancy is found, compare the items on the cancellation listing to the items on the CARS/IPAC bill to identify the source.
When identified, refer to 3.17.79.12.1.1(12).
Only the IMF and BMF portions of the cancellation listing need to be journaled through RRACS (Debit 4970 Account and Credit Master File) using a Document Transmittal.
Prepare appropriate Document Transmittal (Debit 4970 Account and Credit Master File). Attach a copy of the TRACS listing, a photocopy of the CARS/IPAC transmission and route to the Redesigned Revenue Accounting Control System (RRACS) function for journal action.
Hold all other documents until the RRACS function returns the Document Transmittal with the journal number, then:
Route a copy of the TRACS listing to the Refund Inquiry function.
Maintain a copy of the TRACS listing in Accounting per your established local procedures for two years after related unit ledger cards are closed..
3.17.79.12.3 (11-19-2015)
Processing Unavailable Check Cancellation Credits (UCC)
When a tax refund non-receipt claim is submitted by a taxpayer and the claim is forwarded to BFS via paper Form 1184, Non-Receipt Claim, Check Claims determines the refund check is outstanding (never been cashed), and a UCC credit is forwarded to IRS's Budget Clearing Account via CARS.
When a UCC TRACS listing is received, record information and verify that:
The schedule number and total money amount matches the CARS/IPAC transmission.
The Agency Location Code (ALC) is correct.
All taxpayer information is provided.
Immediately contact BFS Accounts Branch by phone at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and inform them of any discrepancies as described in IRM 3.17.79.12.2, Processing Reclamation Credits (REC).
All processing for TRACS listings must be completed within 10 work days from the received date. The TRACS listing, produced from a magnetic tape received by ECC, provides an individual breakdown by taxpayer.
Verify that the sum of the totals on the IMF, BMF and Miscellaneous listings match the total cancellations on the corresponding TRACS listing, and that the total matches the CARS amount.
If a discrepancy is found, compare the items on the cancellation listing to the items on the CARS bill to identify the source.
When identified, refer to 3.17.79.12.1.1(12).
Only the IMF and BMF portions of the cancellation listing need to be journaled through RRACS (Debit 4970 Account and Credit Master File) using a Document Transmittal.
Prepare appropriate Document Transmittal (to Debit 4970 Account and Credit Master File). Attach a copy of the TRACS listing, a photocopy of the CARS/IPAC transmission and route to the Redesigned Revenue Accounting Control System (RRACS) function for journal action.
Hold all other documents until the RRACS function returns the Document Transmittal with the journal number, then:
Route a copy of the TRACS listing to the Refund Inquiry function.
Maintain a copy of the TRACS listing in Accounting.
3.17.79.12.4 (01-01-2015)
Processing Limited Payability Cancellations (LPC)
Under the provisions of the Competitive Equality Banking Act of 1987 (Limited Payability or LP), U.S. Treasury checks must be negotiated (cashed) within 1 year of the check issue date or before October 1, 1990. After expiration of the 1 year period, any checks outstanding (not cashed) will be canceled by Bureau of the Fiscal Service (BFS). More detailed instructions about Limited Payability are located in IRM 21.4.4.
For checks issued October 1, 1989 and subsequent, LPC cancellations will take place once monthly. Outstanding checks will be canceled in the Check Processing and Reconciliation (CP&R) System 14 months after the month of issuance. BFS will return credits for these checks to IRS 15 months after the month of issuance.
Credits will be returned via CARAS/IPAC and journaled into the 4970 Account upon receipt. Supporting detail information will be supplied from BFS Financial Information, Accounts Branch in Hyattsville, Maryland, and transmitted directly to ECC. This processing is part of the Treasury Receivable Accounting and Collection System (TRACS).
Limited Payability Cancellation (LPC) Credits provided monthly will generate TC 740 with block and serial number "66666" . IMF and BMF generated credits between ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will be immediately released. Those less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will set an "S-" Freeze.
Each LP cancellation tape will produce an IMF tape with detail listing, a BMF tape with detail listing and a Miscellaneous (NMF, Photocopy Fee, etc.) listing of items that cannot be posted to the Master File. It is possible for an ALC address to receive up to three listings for Limited Payability Cancellations.
LP cancellation listings are processed within 10 working days of receipt as follows:
Verify that the sum of the totals on the IMF, BMF and Miscellaneous listings match the total for LP cancellations on the corresponding TRACS listing, and that the total matches the CARS amount.
If a discrepancy is found, compare the items on the LP cancellation listing to the items on the CARS bill to identify the source.
When identified, refer to IRM 3.17.79.12.1, Background - Limited Payability Legislation, Public Law 100-86.
Only the IMF and BMF portions of the LP cancellation listing need to be journaled through RRACS (Debit 4970 Account and Credit Master File) using a Document Transmittal (Follow instructions in IRM 3.17.79.12.4.1(4)(d) and (e)).
3.17.79.12.4.1 (01-01-2015)
Miscellaneous Treasury Receivable, Accounting, and Collection System (TRACS) Listing
The Miscellaneous listing is processed manually.
Most entries on the Miscellaneous listing are for Photocopy Fee Refunds. The check issuance date will determine whether the Refund Voucher and Schedule of Payments Number, ending with "PC" , indicating a Photocopy Fee Refund, is still in files. Performing this research will prevent duplicate refunds. At Center option and if documentation is available:
Pull the Secure Payment System (SPS) print or Form 1166, Voucher and Schedule of Payments, from the Manual Refund file for each Photocopy Fee entry on the listing.
Stamp cancellation on the Form 1166 OCR, and at the side of each corresponding entry attached to the Form 1166.
Note on the Miscellaneous listing "6310" for each item.
-
Follow instructions in (d) and (e), below, to journal through RRACS (Debit 4970 Account and Credit 6310 Account) using a Document Transmittal.
Other entries on the Miscellaneous listing will be IMF, BMF, ANMF, IRAF or General Ledger credits.
At Center option for maintaining and researching the use of the items credited from the 6565 Account, pull the SPS print or Form 1166 OCR, Voucher and Schedule of Payments, with accompanying refund document forms (Form 3753, Form 5792, Refund Voucher Listing, etc.).
Stamp cancellation on the SPS print or Form 1166 and on the accompanying refund document.
Photocopy each schedule and document "Canceled" and attach to the Miscellaneous listing maintained in Accounting. Refile original documents.
Research as necessary, IDRS, MFTRA, INOLE, ANMF, etc.
Control on IDRS and include a history item showing the TRACS Schedule Number, as follows:
ACTON
C#,LPLISTING,M,MISC
*,(TRACS Received Date)
ACTON
H,ZXXXXXXXX
ACTON
C#,LP/740,CAfter research is completed, close the control base.
Photocopy and attach documents to the Miscellaneous listing maintained in Accounting. Verify amounts for balancing.
Note the MFT and Tax Period or General Ledger Account on the LP listing for each credit, and whether a Form 3245 was prepared.
Journal through RRACS (Debit 4970 Account and Credit IMF, BMF, ANMF, or IRAF), whichever account applies, using a Document Transmittal.
Some entries on the Miscellaneous listing may be from a General Ledger Account, such as 6800, 4620, 9999, etc.
Pull the SPS Print or Form 1166, from the Manual Refund File, with accompanying Refund Voucher List.
Stamp "Cancellation" on the Form 1166, and on the Refund Voucher List.
Photocopy each document canceled and attach it to the Miscellaneous listing maintained in Accounting. Refile original documents.
Notate the General Ledger Account 6800 for each credit on the LP Listing.
Journal through RRACS (e.g., Debit 4970 Account and Credit 6800 Account) using a Document Transmittal. Follow instructions in (d) and (e), below. Because credits are over 1 year old, all entries from the General Ledger Accounts are journaled to 6800 Account only.
Prepare Document Transmittal. Attach a copy of the IMF, BMF and Miscellaneous listings and the second copy of any Form 813 to the Document Transmittal and route to the RRACS function for journal action.
Hold all other documents until the RRACS function returns the Document Transmittal with the journal number. Then:
Route any original Form 813 and Form 3245 to Batching and Numbering for processing.
Route a copy of all listings to Refund Inquiry.
Route a copy of any listings containing Photocopy Fee Refund cancellations to the Photocopy Fee function.
Maintain a copy of all LP listings with any back-up attached in Accounting Operations.
3.17.79.12.5 (11-19-2015)
Maintaining Account 6565 and Monthly Balancing Routine
Checks expired under the provisions of Limited Payability, either issued prior to October 1, 1989, returned by taxpayers or cashed due to forgery, are worked through Account 6565 originating in the Refund Inquiry area to maintain internal controls.
Research and preparation of Form 3809, Miscellaneous Adjustment Voucher, for 6565 Account cases is performed in the Refund Inquiry function. See related instructions in IRM 21.4.2.4.11, Check Cashed/Limited Payability (Possible Forgery) and IRM 21.4.2.4.14, Account 6565 Processing for Refund Inquiry Function.
Refund Inquiry forwards the entire case file to Accounting, or a photocopy of the case file, along with Form 3809 for processing. The following must be included with the case file:
A MFTRA or TFTRA transcript (or IDRS print) of the refund tax module.
A photocopy of the expired check, and/or information supporting a statement that the check was returned to the RFC.
Any taxpayer correspondence.
Form 3859, Claims Disposition Notice (CDN) or evidence that a non-receipt claim was initiated and the current status of the check.
Accounting will verify that:
All information for the case is attached.
Form 3809 is attached (See Exhibit 3.17.79-7 , Blocking Series Chart for Document Code 45, Standard F1098 and TRACS Processing).
Use of Account 6565 category code is recorded on Form 3809.
A cover sheet is attached to the case (if appropriate) and,
The Accounting Control/Services Chief signed the cover sheet, as appropriate.
See paragraph (5), Check List, below, for Posting TC 841/740.
Maintain a log of all reviewed cases, including but not limited to:
The Taxpayer Identification Number.
The Dollar Amount.
The MFT and Tax Period involved.
General reason why the taxpayer is requesting a new refund check.
Take precautions that duplicate cases are not processed. Refund checks issued October 1, 1989 or after (excluding forgeries) are not processed through the 6565 Account. Outstanding refund checks issued October 1, 1989, or later, that are over 1 year old, are canceled via Limited Payability (TRACS).
Maintain money amounts of the case files with Form 3809 for balancing the 6565 Account.
Number Form 3809 as instructed in Exhibit 3.17.79-8, using Document Code 48 and Blocking Series 899.
Prepare Form 813, Document Register, listing all Form 3809 having the same MFT.
Prepare Document Transmittal (Debit 6565 Account and Credit Master File). Attach second copy of Form 813 and Part 2-Debit copy, of Form 3809 requesting that journal number be stamped on each Form 3809.
Route to RRACS function for journal action.
Hold all other documents until the RRACS function returns the Document Transmittal and Part 2-Debit Copy of Form 3809 with the journal number.
Route original Form 813 and Part 1-Credit Copy of Form 3809 to Batching and Numbering for processing.
Attach Part 2-Debit Copy of Form 3809 to each corresponding case file and maintain case files in Accounting.
The 6565 Account is balanced monthly. Balancing actions and other review activities are required as with other general ledger accounts. Current month inventory should be filed separately until balancing is complete; then it is appropriate to maintain the account separately by month or merge it into a general "closed" file for the Fiscal Year.
Check List for posting TC 841/740. The Refund Inquiry function will take the following steps to post TC 841 or TC 740 to the taxpayer's account when the appropriate credit is not posted through normal MF processing (LP TRACS). The Refund Inquiry function researches and prepares Form 3809.
This information is necessary for Accounting to accurately verify that each case is complete. Refund Inquiry will annotate the 6565 Account category of the debit in the upper left corner of Form 3809.
For Categories 2, 3 and 4, a cover sheet must be attached at the front of the case file showing all appropriate attempts to locate the credit were not successful and appropriate managerial level supports the release through 6565 Account.
Category 3 cases require the Accounting Operations Chief's signature.
Category 1: Limited Payability credits (no credit due from BFS). Most 6565 Account cases fit into this category.
Category 2: BFS states the credit has been returned to IRS. After a thorough search and follow-up with BFS, IRS is unable to find any record of the credit. This credit may be sent through the RFC or directly from Hyattsville as the result of a check claim. See IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System. Credit is applied from Account 6565 to the taxpayer's account using Form 3809.
BFS Regional Operating Center: F1098 Refund Stops or Intercepts, undeliverables, returned checks (Available Check Cancellations). Regional Financial Center (RFC) will show Reason for Cancellation Code (RCC) (Contact telephone numbers are in Exhibit 3.17.79-10).
BFS: Form 1081 Reclamation credits, Status 32 credits for paper-filed Form 1184 claims. Contact the person whose name appears on the Form 3859 or Form 1081.
Category 3: BFS authorizes settlement via 3859 and seeks reclamation timely, but no credit is returned to IRS within 1 year. After appropriate contacts with BFS, credit the taxpayer's account. Credit will be applied from Account 6565 to the taxpayer's account using Form 3809. The Accounting Operations Chief's signature is required on the check sheet. If credit is subsequently received from Hyattsville, credit the 6565 Account for the amount previously debited to satisfy the taxpayer.
Category 4: BFS authorizes settlement and reclaims from the bank, however, the bank recovers only partial credit. BFS, therefore, is able to return only partial credit to IRS. Since a partial credit cannot post, the taxpayer's account remains in debit balance for the entire amount. After appropriate follow-up with BFS, use Form 3809 to debit Account 6565 and credit Account 4970 for the difference. Prepare Form 3245 to post the entire refund amount from Account 4970 to the taxpayer's account.
No Category Number: The amount of credit from BFS is less than the refund amount (understated), and the amount is under ≡ ≡ ≡ ≡ ≡. Follow-up with BFS indicates no correction will be made. Post reversal of the entire refund to the taxpayer's account. Annotate the Form 3245 with the amount from Account 6540 (Debit Account 6540) and the amount from Account 4970.
No Category Number: BFS returned the credit, but the amount of credit is more than the refund amount (overstated), and the discrepancy is under ≡ ≡ ≡. Follow-up with BFS indicates no correction will be made. Annotate the Form 3245 with the amount to post the credit to the taxpayer's account. The excess amount will be applied to Account 6540.
3.17.79.12.6 (01-01-2013)
Processing Credits, Standard Form (Form) 1081
At times, systemic difficulties prevent the return of credits via TRACS and a refund check is outstanding or corrections to CARS/IPAC transmissions are necessary. In these situations, credit is returned to IRS Budget Clearing Account via Form 1081, or Form 1081 EDP Voucher and Schedule of Withdrawals and Credits. The Form 1081 is accompanied by a Form 1081 listing which provides individual items by taxpayer identification numbers. Refund Inquiry, if appropriate, initiates a recertified check to the taxpayer in cases where the refund is not automatically issued from Master File (TC 846).
Accounting logs incoming Forms 1081. Record data in the log:
Form 1081 number;
Dollar ($) amount;
Type of charge (debit or credit);
Item count; and
Received date.
Verify that:
The Agency Location Code (ALC) is accurate and the charge is intended for that Submission Processing Center;
All taxpayer information is provided; and
All items are for tax refunds.
If discrepancies are identified, contact BFS Accounts Branch at (202) 874-7920. Explain the discrepancy:
ALC is incorrect;
Account cannot be identified;
Charge belongs to another ALC;
Charges are not for tax refunds; or
Taxpayer identifying information (SSN/EIN/Name) is missing or incorrect.
BFS will either:
Provide the missing data;
Reverse the charge via Form 1081 and, if appropriate, issue a corrected Form 1081; or
Take other appropriate action.
In situations as described in IRM 3.17.79.12.6 (3) or (4), above, do not prepare a Form 1081 to reverse charges back to BFS without first obtaining prior approval from BFS.
Occasionally, an amount shown on the Form 1081 may differ from the TC 840/846 amount shown on the taxpayer's account.
Treasury Offset Program (TOP) refund offsets will occur if taxpayers have an agency debt. See IRM 21.4.6.
This offset is indicated by TC 898 on the taxpayer's account.
If no TC 898 and money amounts still differ, immediately contact BFS Accounts Branch by phone and in writing.
Attach a copy of the Form 1081 listing and any other documentation available showing the correct refund amount.
Forward to:
Bureau of the Fiscal Service
Manager, Accounts Branch
Room 700
3700 East-West Highway
Hyattsville, Maryland 20782When review is completed by BFS, action will be taken to initiate a Form 1081 for the difference.
If no response is received from BFS within 6 weeks, follow-up in writing. See IRM 3.17.79.12.2, Processing Reclamation Credits (REC), for example of written request to BFS, Accounts Branch.
If follow-up procedures outlined above and in IRM 21.4.4, are unsuccessful, and questions or problems concerning changes on the Form 1081 cannot be resolved between the SP Center and BFS, contact the National Office Project 744 analyst. Previous correspondence and documentation between the Center and BFS may be requested by National Office.
3.17.79.12.6.1 (01-01-2015)
Corrected or Paper Standard Form 1081
BFS, Accounts Branch, explains that receipt of paper Form 1081 is considered TRACS exception-processing; the items cannot be transferred from Check Processing and Reconciliation (CP&R) to TRACS automatically. Also, paper Form 1081 result when BFS issues data or item corrections to previous CARS transmissions. Corrections cannot currently be transmitted via CARS.
Corrected Form 1081 can be identified by Schedule numbers "B700xxxxxx." These items will also contain sufficient information to describe the initial schedule transmission being reversed or corrected.
BFS, Accounts Branch, attempts to maintain accurate end-of-month records of paper Form 1081 issued, and provides each ALC with a listing of paper Form 1081 for the prior accounting period. If centers do not receive this document to verify transmittals by the 15th of the month following the accounting period, contact the BFS, Accounts Branch.
Within 10 workdays of receipt of the Form 1081, using the Form 1081 listing as the basis, prepare a Form 3245, Posting Voucher-Refund Cancellation or Repayment (See Exhibit 3.17.79-8 for Blocking Series), for each taxpayer, to input a TC 841 to the tax module for the amount of the credit.
When the TC 841 posts to the tax module, a "P" Freeze generates. The P Freeze indicates that a refund check has been canceled and redeposited.
Review the return before releasing the P- Freeze and reissuing the refund. See IRM 21.4.4 for resolution of the P- Freeze.
Not all information required for preparing the Form 3245 can be found on the Form 1081. Research IDRS/IMFOL for the ULC/Office code and Schedule date. IMFOL should be used instead of requesting MFTRA whenever possible.
Control on IDRS. Include a history item showing the Form 1081 number. Include a history item showing the money amount if more than one TC 846 has posted to the account.
ACTON ACTON C#, 1081/841,M,MISC H#, (Form 1081 Number) *, (Form 1081 Received Date) ACTON H#, ($ Amount) After research is complete and Form 3245 is prepared, close the IDRS control base.
Verify amounts of Form 3245 with the Form 1081 for balancing. Maintain a log of all Form 3245 by DLN and date.
Photocopy (1 copy) of all Form 3245 and the Form 1081 listing. Make 2 photocopies of the Form 1081 schedule.
Prepare Form 813, Document Register, listing all Form 3245 having the same Office and tax class codes. Verify amounts for balancing.
Prepare Document Transmittal (Credit Master File). Attach the original Form 1081 schedule, the second copy of Form 813, and a tape verifying the amounts to the Document Transmittal and route to the Redesigned Revenue Accounting Control System (RRACS) function for journal action.
Hold all other documents until the RRACS function returns the Document Transmittal with the recorded journal number, then:
Route the original Form 813 and Form 3245 to Batching and Numbering.
Route a photocopy of the Form 1081 schedule and listing to the Refund Inquiry function. Make a note on the copy that a TC 841 will be posted to the tax module to reverse the TC 840/846.
Maintain a photocopy of the Form 1081 schedule, the original Form 1081 listing, and a photocopy of all Form 3245 in Accounting.
Exhibit 3.17.79-1
Glossary of Terms, Abbreviations and Commonly Used Forms in Accounting
Terms/Abbreviations | Definition |
---|---|
23C Date | Assessment Date; Notice Date |
1510 Account | Other Receivables Formerly Used For Erroneous Refunds |
1530 Account | Erroneous Refund Court Cases |
1540 Account | Erroneous Refund Non-Court Cases |
1535 Account | Questionable Refund Program/Return Preparer Program Restitution |
4910 Account | Erroneous Refund Pending Write-Off Approval |
4970 Account | Unapplied Refund Reversal |
4620 Account | Unidentified Remittance |
6565 Account | Limited Payability |
6800 Account | Excess Collection |
6920 Account | Erroneous Refund Approved Write-Off |
A | |
ACC | Available Check Cancellation |
ACH | Automated Clearing House - type of EFT System |
ACI | Assistant Commissioner International |
ACTON | IDRS Case Control and History Request |
ALC | Agency Location Code |
AMS | Account Management Services |
ANMF | Automated Non-Master File |
ASED | Assessment Statute Expiration Date |
ATAO | Application for Tax Assistance Order |
ARFC | Austin Regional Finance Center |
B | |
BBTS | Batch Block Tracking System |
BFS | Bureau of Fiscal Service |
BMF | Business Master File |
BMFOL | Business Master File On-Line Research |
BOB | Block Out of Balance |
BPD | Bureau of Public Debt |
C | |
CADE | Customer Account Data Engine |
CAF | Centralized Authorization File |
CARS | Central Accounting Reporting System |
CCG | Check Claims Group |
CDN | Claim Disposition Notice (BFS) |
CFINK | Centralized Authorization File Inquiry |
CFO | Chief Financial Officer |
CFOL | Corporation Files On-Line System |
CHKCL | Non-Receipt Claim Check Claim Request |
COMPA | Compute Interest or Estimated Tax Penalty Request |
CP&R | Check Processing and Reconciliation System (BFS) |
CSCO | Compliance Services Collection Operations (formerly Service Center Collection Branch (SCCB)) |
CSED | Collection Statute Expiration Date |
D | |
DCC | Detroit Computing Center |
DDES | Direct Data Entry System |
DIS | Distributed Input System |
DLN | Document Locator Number |
DMF | Debtor Master File |
DOJ | Department of Justice |
DPC | Designated Payment Code |
DQ | Deleted in Quality Review |
E | |
ECC | Enterprise Computing Center |
EITC | Earned Income Tax Credit |
EIN | Employer Identification Number |
EFT | Electronic Funds Transfer |
EFTPS | Electronic Federal Tax Payment System |
ELF | Electronic Filing System |
EONS | Electronic Online-Output Network System |
EQ | Embedded Quality |
ERRF | Erroneous Refund |
ERS | Error Resolution System |
ERSED | Erroneous Refund Statute Expiration Date |
ESTAB | Document Request |
F | |
FEDLINE | Transmits funds through FEDWIRE |
FEDWIRE | A type of EFT service using Federal Reserve Communication System (FRCS) |
FIDO | Filing District Code |
FLC | File Location Code |
FPD | Financial Processing Division (formerly Adjudication Division) |
FRCS | Federal Reserve Communication System |
FTD | Federal Tax Deposit |
G | |
GAO | Government Accountability Office |
GMF | Generalized Mainline Framework |
GSA | General Services Administration |
GUF | Generalized Unpostable Framework |
GWA | Government Wide Accounting |
H | |
HAL | Holds Automated Listing (BFS) |
I | |
ICS/ACS | Integrated Collection System/ Automated Collection System |
IDRS | Integrated Data Retrieval System |
IGR | IDRS Generated Refund |
IMF | Individual Master File |
IMFOL | Individual Master File On-Line research |
IMF IRAF | Individual Master File Accounts (MFT 29) |
INOLE | National Account Profile Entity Research |
INTST | Interest / FTP penalty Accrual Computation Research |
IPAC | Intra-Governmental Payment and Collection System |
IRAF | Individual Retirement Account File (effective January 2005, IRAF merged into IMF). |
ISRP | Integrated Submission and Remittance Processing |
ITS | International Treasury Services |
L | |
LDTR | Large Dollar Trend Report |
LETER | Letter Request |
LP | Limited Payability |
LPC | Limited Payability Cancellation |
M | |
MCR | Master Control Record |
MFT | Master File Tax (Codes) |
MFTRA | Master File Transcript Request |
MFTRA (G) | Master File Transcript Request (Debtor Master File) |
MFTRA (U) | Master File Transcript Request (Numident-SSN) |
MFTRA (X) | Master File Transcript Request (Taxpayer Literal Copy) |
N | |
NAMEE (BMF) | Employer Identification Number (EIN) Research |
NAMES (IMF) | Social Security Number (SSN) Research |
NLUN | Nullified Unpostable Category Code |
NMF | Non-Master File |
NOREF (BMF only) | Refund Intercept Request |
NTRR | Net Tax Refund Report |
O | |
OBL | Outstanding Balance List |
OBR | Offset Bypass Refund |
OIC | Offer in Compromise |
P | |
PACER | Payment and Claims Enhanced Reconciliation |
POA | Power of Attorney |
POC | Payment Over Cancellation |
Printer Replacement to Integrate New Tools | |
R | |
RAC | Refund Anticipation Check - A RAC is the non-loan product that many commercial tax preparers and their financial institution partners offer in addition to RAL(s). RAC(s), the financial institution opens a temporary bank account into which the IRS direct deposits the refund check. In lieu of issuing a RAL to the taxpayer, the financial institution waits until the IRS direct deposits the taxpayer(s) refund into the temporary bank account. The financial institution, via the preparer, then issues the taxpayer a paper check from the tax preparer. |
RAL | Refund Anticipation Loan - A RAL is money borrowed by a taxpayer from a financial institution based on the taxpayer(s) anticipated income tax refund. The loan is made pursuant to a written agreement between the taxpayer and the financial institution. |
RRACS | Redesigned Revenue Accounting Control System |
RCTF | Recertification Category Code |
RDD | Return Due Date |
REC | Reclamation Credits |
REFAP(R) | Refund Approval IDRS Request |
REINF | IDRS Refund Information File Research |
REQ54/ADJ54 | IDRS DP Adjustment Request |
REQ77/FRM77 | Miscellaneous Transaction Adjustment Request |
RFC | Regional Financial Center |
RFCK | Photocopy Request of Refund Check |
RFIF | Refund Information File |
RFIQ | Refund Inquiry IDRS Category Code |
RFUND(R) | IDRS Generated Refund Request |
RSED | Refund Statute Expiration Date |
RSN | Refund Schedule Number |
RTN | Routing and Transit Number |
RTVUE | Return Transaction On-Line Inquiry |
S | |
SACS | Security and Communications System |
SCCF | Service Center Control File |
SCRIPS | Service Center Recognition Input System |
SFR | Substitute for Return |
SITLP | State Income Tax Levy Program |
SPC | Submission Processing Center |
SPS | Secure Payment System (BFS) |
SSN | Social Security Number |
STAUP | Status Notice Update Request |
SUMRY | Tax Account Research |
T | |
TAS | Taxpayer Advocate Service |
TAU | Telephone Answering Unit, BFS |
TC | Transaction Code |
TDA | Taxpayer Delinquent Account |
TEP | Tape Edit Processor |
TERUP | Transaction Deletion Request |
TIA | Tax Information Authorization |
TIN | Taxpayer Identification Number (or SSN/EIN) |
TOP | Treasury Offset Program |
TPRQ | Taxpayer Request Category Code |
TRACS | Treasury Receivable Accounting and Collection System |
TRDBV | Tax Return Data Base, Retrieves Original Tax Return Information |
TRIS | Telephone Routing Interactive System |
TRPRT | Request Prints of Original Filed Returns |
TXMOD | Tax Module Research |
U | |
UCC | Unavailable Check Cancellation |
UPCAS | Unpostable Case Request |
UPCAS(Z) | Unpostable Case Request |
UPTIN | Unpostable Case Request |
URF | Unidentified Remittance File, Account 4620 |
URINQ | Unidentified Remittance Inquiry |
X | |
XSF | Excess Collection File, Account 6800 |
FORM | TITLE-DESCRIPTION |
---|---|
TFS 145 | Part of Standard F1098 Listing (Direct Deposit) |
Form 210 | Signature for Certifying Officer |
Form 224 | Statement of Transactions |
Form 514B | Tax Transfer Schedule |
Form 813 | Document Register |
Form 843 | Claim for Refund and Request for Abatement |
Form 911 | Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) |
Form 1040N | U.S. Non-resident Alien Income Tax Return |
Form 1042-S | Income Subject to Withholding Under Chapter 3 |
TFS 1044 | Form from Treasury (Pre-Recertification) |
Form 1081 | Voucher and Schedule of Withdrawals and Credits |
Form 1096 | Annual Summary and Transmittal of U.S. Information Returns |
Standard F1098 | Schedule of Canceled or Undelivered Checks |
Form 1099C | Cancellation of Debt |
Form 1099G | Certain Government Payments (currently 1099C) |
Form 1099INT | Interest Income |
Form 1120F | U.S. Income Tax Return of Foreign Corporation |
Form 1120S | U.S. Income Tax Return for an S Corporation |
Form 1128 | Application to Adopt, Change, or Retain a Tax Year |
TFS 1133 | Claim against the United States for the Proceeds of a Government Check |
TFS 1133R | Release of Claim Against the U.S. for Proceeds of a Government Check |
Form 1166OCR | Voucher and Schedule of Payments |
Form 1167OCR | Continuation Sheet |
Form 1184 | Unavailable Check Cancellation |
TFS 1185 | Schedule of Unavailable Check Cancellation Credits |
Form 1310 | Statement of Claimant to Refund Due Deceased Taxpayer |
Form 1331-B | Notice of Adjustment |
Form 1664X | Photocopy of Checks (obsolete form, but occasionally used) |
PD 1782 | Application for Redemption at Par of U.S. Treasury Bonds Eligible for Payments of Federal Estate Tax |
Form 2159 | Payroll Deduction Agreement |
Form 2188 | Voucher and Schedule of Overpayment and Overassessments |
Form 2209 | Courtesy Investigation |
Form 2209A | Status Report |
Form 2287(C) | Notice of Check Not Accepted by Bank |
Form 2424 | Account Adjustment Voucher |
Form 2547 | Block Slip |
Form 2848 | Power of Attorney and Declaration of Representative |
FMS Form 2958 | Delegation of Authority |
Form 3210 | Document Transmittal |
Form 3244 | Payment Posting Voucher |
Form 3244A | Payment Posting Voucher (Exam) |
Form 3245 | Posting Voucher Refund Cancellation or Repayment |
Form 3460 | Transmittal Memo – Accounting Control Document |
Form 3465 | Adjustment Request |
Form 3696 | Correspondence Action Sheet |
Form 3753 | Manual Refund Posting Voucher |
Form 3809 | Miscellaneous Adjustment Voucher |
FMS 3813 | Schedule of Uncollectible Checks |
TFS 3858 | 1133 Claims Package, BFS |
TFS 3859 | Claims Disposition Notice (CDN) |
TFS 3864 | Agency Recertification Follow-up |
Form 3893 | Re-Entry Document Control |
Form 3911 | Taxpayer Statement Regarding Refund |
Form 3913 | Acknowledgment of Returned Refund Check |
Form 4338 | Information of Certified Transcript Request |
Form 4466 | Corporation Application for Quick Refund of Overpayment of Estimated Tax |
Form 4506(T) | Request for Transcript of Tax |
Form 4728/4728A | Notice to Taxpayer of Incorrect Refund Issued |
Form 4804 | Transmittal of Information Returns Reported Magnetically/ Electronically |
Form 4878 | Voucher and Schedule of Payments |
Form 5205 | Information About Your Income Tax Refund |
Form 5344 | Examination Closing Record |
Form 5461A | Tax Refund Offset Program Report of Actions Under Public Laws 97-35, 98-369, 98-378, and 101-508 |
Form 5498 | IRA Contribution Information |
Form 5515 | Debit Voucher – Debit Adjustments from Depository bank |
Form 5792 | Request for IDRS Generated Refund |
TFS 6652 | Statement of Difference |
Form 7004 | Application for Automatic Extension of Time to File Corporation Income Tax Return |
Form 7831 | Schedule of Accounts Written Off |
Form 8050 | Direct Deposit of Corporate Tax Refund |
Form 8166 | Input Reconciliation Sheet |
Form 8288 / 8288-A | Foreign Investment Real Property Tax Act |
Form 8302 | Direct Deposit of Tax Refund of $1 Million or More |
Form 8758 | Excess Collection File Addition |
Form 8821 | Tax Information Authorization |
Exhibit 3.17.79-2
Blocking Series Chart for Document Code "45" Form 3753, Manual Refund Posting Voucher
AO/SC CODE | BLOCKING SERIES | DESCRIPTION | DOC CODE | TC CODE | PROCESSED BY |
---|---|---|---|---|---|
ULC | 200–299 | IMF/BMF | REFUNDS/FORM 3753 | 840 | Accounting |
ULC | 300–399 | BMF (F4466 ONLY) | REFUNDS/FORM 3753 | 840 | Accounting |
ULC | 900 | -0- AMOUNT | FORM 3753 DUMMY REFUNDS TO RELEASE X- FREEZE | 840 | Accounting |
ULC | 920 | IMF/BMF/NMF | FORM 3753 USED WHEN TRANSFERRING REFUNDS TO PROPER ACCOUNT AND IN CONJUNCTION WITH FORM 3809 (*Optional Form 12857, top portion) | 840 | Accounting |
ULC | 600 | MANUAL REFUND/DIRECT DEPOSIT | IRS ERROR | 840 | Accounting |
Optional Form 12857, Refund Transfer, may arrive in Accounting to transfer accounts only. These items do not create a refund condition. Forms 12857, top portion only, are numbered Doc Code 45 and separated from the bottom portion prior to sending to RRACS area via Form 813.
Note:
If posting document requires DLN for Doc Code 45, Blocking Series 92X, aka 'dummy refunds', enter "0" (zero) in Block 4 on Form 3753 (Schedule Number) or Form 12857 (Refund Schedule Number).
Exhibit 3.17.79-3
BFS Treasury Support Center and IRS Contact List
BFS TRACS ISSUE | CONTACT NUMBER |
---|---|
MISSING 1081s (COPIES/DETAIL LISTINGS) | (877) 440-9476 |
REVERSALS (1081/IPAC) | (877) 440-9476 |
DUPLICATE ENTRIES (1081/IPAC BILLS) | (877) 440-9476 |
TAPES (MISSING/BLANK/WRONG ALC) | (877) 440-9476 |
TAPES (DUPLICATE/OUT-OF-BALANCE) | (877) 440-9476 |
CHARGEBACKS (MISSING 3858s/CHECK COPY) | (877) 440-9476 |
IRS HELP DESK | (866) 743-5748 |
ITEMS NOT BELONGING TO ALC | (877) 440-9476 |
ITEMS NOT CHARGED | (877) 440-9476 |
SF-224 REPORTING | (877) 440-9476 |
ACCESSING GOAL/IPAC | (877) 440-9476 |
CREDITS (MISSING LPC/UCC/REC) | (877) 440-9476 |
MICROFICHE (MISSING IPAC DETAIL LISTING) | (877) 440-9476 |
CUSTOMER LIAISON | (877) 440-9476 |
CHECK INFORMATION SECTION | (877) 440-9476 |
MISSING SCHEDULES (1098) OPEN AN KISAM TICKET (HELP DESK) |
Exhibit 3.17.79-4
Refund Schedule Number Format
Manual Refund Schedule Number "YYYYJJJSCTAAAA" | ||
---|---|---|
Field | Field Name | Values |
YYYY | Year | Current year e.g., 20XX |
JJJ | Julian Date | 001-365 (366 Leap year) |
SC | Submission Processing Center | AUSPC 18 CSPC 17 FSPC 89 KCSPC 09 OSPC 29 |
T | File Type | 0 = BMF 1 = IMF 3 = CADE 4 = IRAF 5 = Other 6 = ANMF |
AAAA | Alpha Definitions | See Below |
Note:If sequence for batches becomes necessary, use the available alpha such as:
| A - Arbitrage (8038T) B - RESERVED C - Photocopy Fee (single item) D - Anti-Drug-No longer used E - RESERVED F - Direct Deposit/ACH G - General Ledger Account H - RESERVED I - International (AUSPC, OSPC (PSC), CSPC)) J -Dept. of Justice K -Over $10 Million L - Lock Box Reimbursement Theft M - IMF/BMF/IMF IRAF/8038CP N - Non-Master File (ANMF) O - Offer-in-Compromise P - Photocopy fee weekly application refund report Q - Over $1 Million Refund R - Informant Rewards S - Seizure T - Territorial (NMI, VI, GUAM, Samoa) U - Unidentified V - Wire Transfer W - IDRS Generated X - Excess Collections XI - Foreign Expedited Paper Check Refunds XX - Expedited Paper Check Refunds Y - User Fees - No longer used YO - AOIC User Fees - No longer used Z - CADE ZI - Foreign EFT Refunds 0000 - Paper Check Refunds | |
Note:**AOIC User Fees refunds are not transcribed to post to Master File (CSPC Only) Note:If the Refund Schedule Number is less than 14 digits, fill in with ending zeros. |
ECC Refund Schedule Number ECC Generated "Rebate" Checks | ||
---|---|---|
Field | Field Name | Values |
YYYY | Year "YYYJJJSCTXXAA" | Current year e.g., "20XX" |
JJJ | Julian Date | 001-365 (366 Leap year) |
SC | Submission Processing Center | ATSPC 07 ANSPC 08 KCSPC 09 CSPC 17 AUSPC 18 PSPC 28 OSPC 29 FSPC 89 |
T | File Type | 0 = BMF 1 = IMF 3 = CADE 4 = IRAF 5 = Other 6 = ANMF |
XX | ECC Generated Rebate Type | See Below |
07 - Atlanta 08 - Andover 09 - Kansas City 17 - Cincinnati 18 - Austin 28 - Philadelphia 29 - Ogden 89 - Fresno 97 - International (AUSPC) 98 - International (OSPC, CSPC) | ||
AA | Literals | Two Blanks |
Exhibit 3.17.79-5
Refund Schedule Number (RSN) Translation for TAS/BETC
https://organization.ds.irsnet.gov/sites/SPATPBranch/default.aspx |
---|
The link below provides access to the SPS Refund Schedule Number Alpha-TAS/ BETC Translation Chart on the SPATP, SharePoint site: |
Note:
This chart translates the RSN Alpha Definition Field Value to the existing Treasury Account Symbol. The existing Treasury Account Symbol is now converted to the new CGAC Treasury Account Symbol, which will need to be used when entering manual refund information into the Secured Payment System (SPS).
Exhibit 3.17.79-6
Manual Refund Schedule Number/IDRS Formats as Entered into the Secured Payment System (SPS)
RSN TYPE Manual | 1/2002 FORMAT Y=YEAR SC=IRS CAMPUS T=FILE TYPE (0=BMF, 1=IMF ETC.) JJJ=JULIAN DATE PC=LITERAL | OR Y=YEAR JJJ=JULIAN DATE SC=IRS CAMPUS T=FILE TYPE (0=BMF, 1=IMF ETC.) AAA=VARIOUS ALPHA/NUMERIC | 2/27/2002 FORMAT | 6/28/2002 FORMAT | 1/2003 FORMAT | CURRENT FORMAT Y=YEAR JJJ=JULIAN DATE SC=IRS CAMPUS T=FILE TYPE (0=BMF, 1=IMF, ETC.) AAAA=VARIOUS ALPHA/NUMERIC |
---|---|---|---|---|---|---|
IDRS | YJJJSCTIG | YJJJSC5IG | YJJJSC5AA | SAME AS 2/27/2002 | ||
Y=YEAR JJJ=JULIAN DATE SC=IRS CAMPUS T=TYPE IG=LITERAL | Y=YEAR JJJ=JULIAN DATESC=IRS CAMPUS 5=LITERAL IG=LITERAL | Y=YEAR JJJ=JULIAN DATE SC=IRS CAMPUS 5=LITERAL A=W, WI | ||||
IMF | SAME AS 12/2001 | SAME AS 12/2001 | SAME AS 12/2001 | YJJJSCTAAA | ||
Y=YEAR JJJ=JULIAN DATE SC=IRS CAMPUS 1=LITERAL AAA=I, FI, SPACES | ||||||
ECC Rebate Checks | YYYYJJJSCTXXAA | |||||
Y=YEAR JJJ=JULIAN DATE SC=IRS CAMPUS T=FILE TYPE XX=ECC GENERATED REBATES TYPES AA=BLANKS |
Exhibit 3.17.79-7
Blocking Series Chart for Document Code 45, SF 1098 and TRACS Processing
AO/SC CODE | BLOCKING SERIES | DESCRIPTION | DOC CODE 45 | TRANSACTION CODE | PROCESSED BY |
---|---|---|---|---|---|
SC | 220–299 | REPAYMENT OF ERRONEOUS IMF/BMF | FORM 3245 | 720 | RECEIPT AND CONTROL |
ULC | 500–519 | IMF/BMF | SF 1098 FORM 3245 | 841/740 | ACCOUNTING |
ULC | 520–529 | ANMF | SF 1098 FORM 3245 | 841/740 | ACCOUNTING |
ULC | 530–539 | IMF-IRAF | SF 1098 FORM 3245 | 841/741 | ACCOUNTING |
ULC | 540–549 | IMF/BMF/ ANMF | TFS 3813/ FORM 3245 | 843/742 | ACCOUNTING |
ULC | 550–554 | IMF/BMF | SF 1081 DEBIT/ POC TRACS FORM 3245 | 843 | ACCOUNTING |
ULC | 550–553 | IMF/BMF | SF 1081 DEBIT SETTLEMENT AUTHORIZED FORM 3245 | 840 | ACCOUNTING |
ULC | 555 | INTERCEPTED CHECKS MANUALLY PROCESSED SF 1098 LISTING | SF 1098/ FORM 3245 | 841 | ACCOUNTING |
ULC | 666 | IMF/BMF/ ANMF | LIMITED PAYABILITY CANCELLATION CREDIT/ TRACS FORM 3245 | 740 | ACCOUNTING |
ULC | 800 | REPAYMENT OF ERRONEOUS REFUNDS ANMF | FORM 3245 | 720 | RECEIPT AND CONTROL |
Exhibit 3.17.79-8
Reason for Cancellation Codes (SF 1098)
RRC CODE | Description | Trans. Code | Freeze Code | Block and Serial Number |
---|---|---|---|---|
01 | Intercept Checks (December-2014 and prior) | 841 | P- | 55555 |
02 | Undeliverable Checks | 740 | S- | 99999 |
03 | Returned Checks (other than intercepted or undeliverable) | 841 | P- | 99999 |
04 | Effective January-2015 Intercept Checks (CC NOREF) | 841 | P- | 77798 |
08 | Unavailable Check Cancellation Credit (returned on outstanding checks as a result of a check claim, CC CHKCL/Status 32) | 841 | P- | 88899 |
09 | Unavailable Check Cancellation Credit | 841 | NONE | 88888 |
09 | Reclamation Credit | 841 | NONE | 88000 |
09 | Outstanding check as the result of a paper 1184 | 841 | NONE | 88111 |
11 | Taxpayer correspondence attached. (Also could include a photocopy fee refund cancelled that would not show on the MF.) | 841 | NONE | 99999 |
40 | Limited Payability (LP) expired credit | 740 | S- | 66666 666XX (prior to 1992) |
71 | Unavailable Check Cancellation Offset Return. As a result of an agency claim, only the TOP offset amount of the original payment is returned. See IRM 21.4.6, Refund Offset. | 841 | See IRM 21.4.6 , Refund Offset. | 88888 |
72 | Unavailable Check Cancellation Partial Payment Return. As a result of an agency claim, only the net amount of the original payment after TOP offset is returned. See IRM 21.4.6, Refund Offset. | 841 | See IRM 21.4.6 , Refund Offset. | 88888 |
Exhibit 3.17.79-9
Form 3809 Miscellaneous Adjustment Voucher
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Shown is how the Form 3809 is filled out when processing cases for the 6565 account: The DEBIT box reads 6565 ACCOUNT.The TAXPAYER'S NAME and ADDRESS are complete, and the NAME CONTROL is underlined (See Exception in #8 below).The two-digit UNIVERSAL LOCATION CODE is correct.The TIN is correct.The MFT, TAX PERIOD and TRANSACTION DATE correspond with the refund being cancelled.The DEBIT AMOUNT and CREDIT AMOUNT are the same and correspond with the refund being cancelled.Enter TC 841 as Transaction Code.NMF box is checked on the DEBIT portion and MF box is checked on CREDIT portion. Exception: Occasionally the refund will be re-issued from another NMF account (6520) instead of MF. Verify that:a. The NMF account is listed in the CREDIT box.b. The MFT, TAX PERIOD, and TRANSACTION DATE are not needed.c. The NMF box is checked in both the DEBIT and CREDIT portions.The EXPLANATION is complete (Explanations will vary depending on the refund situation.)The PREPARED BY and DATE PREPARED boxes are complete.The correct CATEGORY CODE is noted, and completed COVER SHEET is attached if appropriate.The DLN constructed as follows:Digits 1-2: File Location CodeDigit 3: Tax ClassDigits 4-5: Doc. Code 48Digits 6-8: Current Julian DateDigits 9-11: Blocking Series 899Digits 12-13: Serial Number Beginning with 00
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Account 6565 Cover SheetShown is an account 6565 cover sheet.
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Page Last Reviewed or Updated: 16-Dec-2022