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Part 21. Customer Account Services

Chapter 5. Account Resolution

Section 7. Payment Tracers (Cont. 1)

21.5.7  Payment Tracers (Cont. 1)

21.5.7.4 
Resolving Missing Payments Procedures

21.5.7.4.6 
Processing Complex Payment Tracers

21.5.7.4.6.9  (10-01-2008)
Payment Not Located

  1. If you do not have a copy of the cancelled check, obtain an image of the remittance from the Remittance Transaction Research (RTR) system or request a copy of both sides of the remittance from the taxpayer as applicable. For additional information see IRM 21.5.7.4.7.1 , ISRP/RRPS or see IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System.

    If Then
    Missing payment will not fully pay the balance due (a) Request balance due from taxpayer.
    (b) Establish an installment agreement per IRM 5.19.1, Balance Due.
    Missing payment will fully pay the balance Input CC STAUP or TC 470 (no Closing Code).

  2. If the missing payment is an FTD, See IRM 21.5.7.3.3, IDRS Research for Federal Tax Deposit (FTDs), and IRM 21.5.7.4.7.15 , Federal Tax Deposits (FTD).

  3. If the copy of the remittance was provided and you cannot locate the payment, complete all necessary research and:

    1. Prepare Form 4446, Payment Tracer Research Record.

    2. Attach copy of the cancelled check and copies of all research documents.

    3. If applicable, send appropriate " C" letter.

    4. Forward to HPTF function in the campus that processed the payment.

21.5.7.4.6.10  (12-16-2004)
Substantiation Process

  1. The following section provides procedures for creating a substantiated credit in cases where documentation is not available for normal processing. This allows case resolution even if HPTF determines that necessary documentation has been lost or destroyed.

  2. HPTF will continue searching for the payment until it is determined documentation needed to locate the missing payment was destroyed or cannot be located. When the documentation was destroyed or cannot be located, the following key elements are used to create a substantiated credit:

    • Absolute Proof of Payment

    • Authorization

    • Transfer from Account 6570

    Caution:

    Incomplete or illegible Form 4446, Payment Tracer Research Record, could result in unnecessary taxpayer burden by delaying resolution. Please ensure the Form 4446 is complete and includes the originator’s name, IDRS number, and phone number. HPTF may return erroneous, incomplete or illegible Forms 4446.

  3. A substantiated credit MUST be allowed if the missing payment is not located within 120 calendar days of receipt by HPTF. Cases accepted in HPTF will be controlled in "M" status on IDRS until the case is resolved.

    Caution:

    Before taking any account action contact the HPTF technician with the IDRS control.

21.5.7.4.6.11  (10-01-2007)
Absolute Proof of Payment

  1. Absolute proof of payment is conclusive evidence that IRS received a payment, e.g.:

    • Cash receipts (Form 809 or IRS NCR receipts)

    • Canceled checks

    • Negotiated money orders

    • Negotiated cashiers checks

    • Narrative descriptions of endorsements by banks, money order vendors, and IRS employees (e.g., Revenue Officers)

  2. NCR receipts must identify the Register Number, time, date, office location and type and amount of tax paid.

  3. Absolute proof a Federal Tax Deposit was made is the verification or acknowledgment of a payment submitted to a commercial or Federal Reserve Bank. This proof can be:

    1. A canceled check for the amount of the payment made payable to and negotiated by a commercial depository or a Federal Reserve Bank. Have the bank verify the credit was deposited in the Treasury Tax Loan Account (TT&L).

    2. A commercial bank or federal tax deposit receipt for the amount of payment.

    3. A photocopy of the FTD coupon received in the FTD processing campus.

    4. Transmittal showing the deposit in question was received and processed without adjustment. If an adjustment was made, verify the deposit was not included.

  4. When a lien is on the account (TC 582, lien indicator) and the payment will fully satisfy all outstanding liabilities, request a manual lien release. See IRM 5.12.3.2.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794Request for Release, Partial Release, or Withdrawal of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.

21.5.7.4.6.12  (10-01-2003)
Substantiation of Payment — Authorization Responsibility

  1. The Manager of the Accounting Control/Services Operation reviews and approves substantiated payment credit after research is exhausted.

21.5.7.4.7  (10-01-2003)
Payment Methods/Systems

  1. The following methods/systems are used for making/processing payments:

    • ISRP/RRPS

    • Manual Deposits

    • Field Office Remittances

    • Lockbox Payments

    • Installment Agreement User Fee Lockbox Payments

    • Justice Department Lockbox Receipts

    • Cashier’s Check

    • Money Orders

    • Truncated checks

    • Cash payments

    • ANMF payments

    • Foreign Remittances

    • Treasury Bonds

    • Free items

    • FTD payments

    • Electronic Federal Tax Payment System (EFTPS) payments

    • Electronic Funds Withdrawal (Direct Debit) and Credit Card

    • Direct Debit Installment Agreements

    • Lloyds of London taxpayers

    • State Income Tax Levy Program (SITLP)

21.5.7.4.7.1  (10-01-2007)
ISRP/RRPS

  1. The Integrated Submission and Remittance Processing (ISRP) System converts paper tax and information documents, and remittances received by IRS into perfected electronic records of taxpayer data. When a tax document is received, it is opened and sorted by form type (e.g., 1040, 1040A etc.). Remittances with their accompanying documentation are pre-sorted into groups called batches. Each batch is uniquely identified by a 12–digit RPSID number. This number always begins with "00" , followed by 6 digits, followed by "0000." This system will capture, store, retrieve, archive (vouchers and check images) and route source data to downstream processing activities which subsequently post to the taxpayer's account on Master File.

    Note:

    You will not be able to research ISRP payments through the ISRP system once the information is available through RTR.

  2. The information stored in the archive system includes the following:

    1. The actual front image of a paper voucher or an image created from data that an ISRP operator entered when no voucher was present.

    2. Actual images of both sides of the remittance. The file on the back of the remittance contains the endorsement and encoding information.

    3. Data used to research for each voucher and related remittance, such as the TIN, DLN and date of deposit.

    4. The archive system permits the retrieval of document images and data for up to 5 years after the information has been processed through the remittance system.

      Note:

      Document 6209, IRS Processing Codes and Information, Section 4, pages 13 and 14, provide exhibits of the RRPS Electronic Payment Voucher, information about the endorsement data and the IRS audit trail.

  3. When the remittance (checks, money orders, etc.) is processed through RRPS, the remittance amount is encoded at the bottom right front, the IRS audit trail is printed on the back of the remittance to the right of the RPSID number. The system also stamps the U.S. Treasury on the back of the remittance.

  4. In order to resolve missing payments, you may need to research the Remittance Transaction Research (RTR) system. If RTR is not available to your area you may need to research the ISRP Archival Retrieval System. Fax Form 11357, ISRP Image Retrieval Request, to the campus that processed the payment. See the ISRP Archive Contact List, located on SERP under the Who/Where tab, for a list of contacts for each campus.

    Exception:

    Route payments processed at Memphis to the Cincinnati campus.
    Route payments processed at Philadelphia to the Ogden campus.
    All functions other than Brookhaven Accounts Management (AM) and Cincinnati Accounting function, will route requests for ISRP payments processed at Brookhaven to the Cincinnati campus. Brookhaven AM and Cincinnati Accounting functions will service their own requests.

  5. This process will scan "scannable " vouchers and checks and assign a DLN. Returns with payments will no longer have a Document Locator Number (DLN) that matches the payment DLN. The inflated julian date associated with the deposit item previously processed through RPS will no longer appear on the taxpayer's account.

  6. The ISRP RRPS audit trail is different from the RPS audit trail. It will reflect the following:

    • The tax period and transaction date are on the second line

    • The identifying information for a payment other than Master File, such as a photocopy payment, will also be displayed on the second line. The symbols will be the last 7 to 9 digits. For example, 20X0903. See IRM 3.8.44, Campus Deposit Activity, for additional information

    • If the payment is a multiple or split payment, an M or S will appear between the tax period and the transaction date

  7. The following is a comparison of the RPS/ISRP DLN:

    DLN Element RPS ISRP
    File Location Code Applicable SC Code Applicable SC Code
    Tax Class Various Various
    Document Code All Codes 17 - subsequent payment
    19 - overflow
    70 - TC 610 tax return payment
    76 - overflow
    20 - TC 430
    Julian Date Date work batched Deposit date
    Block Series Per IRM 3.5.61.3.24, Integrated Submission and Remittance Processing System (ISRP). 000 - 999
    Serial Number 00 - 99 RPS Number 00 - 99 System Assigns
    Year Digit Year processed RPS Number Year Processed System Assigns

  8. Payment Tracer procedures outlined in See IRM 21.5.7, Payment Tracers , should be followed for ISRP payments prior to initiating the following action:

    1. You have a copy of the front and back of the canceled remittance, and cannot find the payment through preliminary research. Complete the Form 4446, enter the appropriate STAUP and TC 470 to hold the notices. The case must be transferred to Hardcore Payment Tracer Function (HPTF). Send 86C Letter, Referring Taxpayer Inquiry/Forms to Another Office, if appropriate. See IRM 21.3.3.4.2.1, Use of 86C Letter, to determine when it is necessary to notify the taxpayer.

    2. If you have a "slipped block" request the five documents before and after your payment if RTR is not available. If more than three payments have been misapplied, prepare Form 4446, Payment Tracer Research Record,when appropriate send 86C Letter. Enter the appropriate STAUP and TC 470 to hold the notices. Transfer the case to HPTF. If three payments or less have been misapplied, you should resolve the issue and have the payments applied to the correct accounts.

21.5.7.4.7.2  (10-01-2003)
Manual Deposits

  1. Deposit items that are not processed through ISRP must be processed through Manual Deposit, Lockbox or IDRS. These include unidentified deposits and re-deposits of dishonored checks. Receipt and Control will prepare a payment posting voucher whenever a source document is not available and the remittance cannot be processed through RRPS.

  2. Remittances processed manually are underlined with a rocker symbol in green pencil, "green rockered" on the return. Encoder information is on the back of the remittance.

  3. Remittances are applied instantaneously when applied to the taxpayer's account through IDRS. Receipt and Control will prepare source documents for IDRS input.

  4. The NCR encoder is used for encoding and endorsing remittances not processed through RRPS. The DLN is not printed on the back of the check, but a sequence number is. You may use this sequence number to locate the encode tape for the DLN. Remittances will be endorsed with the agency location code of the office receiving the credit. See Exhibit 3.8.44–7, Agency Location Codes (ALC) , which provides information on agency location codes.

21.5.7.4.7.3  (10-01-2003)
Field Office Remittances

  1. Field Office Payment Processing involves all payments received from the field office employees. Field offices use overnight services to transship the tax receipts to their designated Submission Processing Center. See IRM 3.8.45.28.6.1, Submission Processing Center/Field Office Payment Processing Alignment for Form 809 Receipts and Other Payments. Cash remittances must be converted to check or money order before sending for processing.

  2. Field office employees issue Form 809 when they receive cash. If payment is by check, money order, etc., a receipt is issued to the taxpayer.

  3. When the Field office employee issues Form 809, it becomes a posting document. The only exception is when the remittance is submitted with an original return. Then, the original return becomes the posting document.

  4. If the payment cannot be located after all preliminary research has been completed, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) at the campus that processed the payment, or processed the most recent payments.

21.5.7.4.7.4  (11-01-2007)
Lockbox Payments

  1. The Lockbox operation involves the processing of tax payments by commercial banks. This method of processing payments accelerates the handling and deposit of funds received and is forwarded to Treasury.

  2. Lockbox banks process payments for the following IMF products:

    • CP 521, Installment Agreement Reminder Notice

    • CP 523, Installment Agreement Default Notice

    • Form 433-D, Direct Debit Installment Agreements

    • Form 1040, Form 1040A, and Form 1040EZ, U.S. Individual Income Tax Return

    • Form 1040, International , will now be processed for Austin SPC

    • Form 1040-ES, Estimated Tax for Individuals

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040-PR, U.S. Self-Employment Tax Return (Puerto Rico)

    • Form 1040-SS, U.S. Self-Employment Tax Return (Virgin Islands, Guam, American Samoa, Northern Mariana Islands)

    • Form 1040X, Amended U.S. Individual Income Tax Return

    • Form 2159, Payroll Deduction Installment Agreements

    • Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

    • Form 8892, Payment of Gift/GST Tax and/or Application for Extension to File Form 709

    • Form 9465, Installment Agreements Requests

    • 3640/3641 C Letter, Federal Tax Lien Payoff Letters

    • 3856C/3856-A Letter , Manually Monitored Installment Agreements

    • User fees and other installment payments

  3. Lockbox banks process payments for the following BMF products:

    • CP 521, Installment Agreement Reminder Notice

    • CP 523, Installment Agreement Default Notice

    • Form 433-D, Direct Debit Installment Agreements

    • Form 940/940-EZ, Employer’s Annual Federal Unemployment (FUTA) Tax Return

    • Form 941, Employer’s Quarterly Federal Tax Return

    • Form 943, Employer’s Annual Tax for Agricultural Employees Return

    • Form 944,Employer’s Annual Federal Tax Return

    • Form 945, Annual Return of Withheld Federal Income Tax

    • Form 1041ES, Estimated Income Tax for Estates and Trusts

    • Form 2159, Payroll Deduction Installment Agreements

    • Form 8109/8109B, Federal Tax Deposit (FTD) Coupon

    • Form 2290, Heavy Highway Vehicle Use Tax Return

    • Form 9465, Installment Agreement Request

    • 3640/3641 C Letter, Federal Tax Lien Payoff Letters

    • 3856C/3856-A, Letter Manually Monitored Installment Agreements

    • User fees and installment payments

  4. Taxpayers mail remittances to the IRS at designated post office boxes for each form type. These addresses can be found in the instructions for the forms listed in (2) and (3) above.

  5. The bank encodes and endorses the remittance. The DLN, TIN, name control, received date, and tax period are printed on the back of the check.

  6. The lockbox system generates an Optical Character Recognition (OCR) Remittance Register, similar to the 813 Remittance Register.

  7. The DLN consists of a file location code (FLC), (the first two digits in the DLN), unique to lockbox processing. Use this number with the bank endorsement to determine the correct campus to research.

  8. All lockbox banks image checks, money orders, and vouchers. Images can be viewed via Remittance Transaction Research (RTR).

    1. If you need a copy of a check and the payment DLN has a list year of 4 (last digit of the DLN) or subsequent, research RTR to retrieve the check image.

    2. If you need a copy of a check and the payment DLN has a list year of 3 (last digit of the DLN) or prior, complete Form 9533 , Lockbox Information Request. Fax Form 9533 to the appropriate campus as outlined in the following chart:

      If the FLC is: Then FAX to the Accounting function in: Fax Number:
      01, 02, 03, 04, 05, 06 Andover Campus 978-474-5234
      13, 22, 26, 27, 31, 35, 56, 62 Cincinnati Campus 859-669-5053
      33, 68, 77, 94 Fresno Campus 559-456-5670
      36, 39, 47, 48 Kansas City Campus 816-292–6205
      59, 65 Atlanta Campus 770-455-2399
      73, 75 Austin Campus 512-460-7512
      23, 25, 51, 87, 88, 91, 92 Ogden Campus 801-620-7897

      Note:

      The fax numbers above are for internal use only.

  9. The Accounting function in each campus will receive and process Form 9533, Lockbox Information Requests . They will fax the form to the lockbox bank to acquire a copy of the check/voucher or credit and debit adjustments.

  10. The lockbox bank has 10 business days from the date the photocopy request is received to respond.

  11. If a debit or credit adjustment is needed, the lockbox bank has 21 calendar days to respond.

  12. When the lockbox bank locates the payment, the debit or credit adjustment is sent to the Accounting Control/Services Operation. The payment should post in 6 - 8 weeks. Requestors submitting lockbox adjustments are required to monitor these cases until the payment posts.

21.5.7.4.7.5  (11-01-2007)
Installment Agreement User Fee Lockbox Payments

  1. The Lockbox operation also processes Installment Agreement User Fees. These payments are encoded as follows:

    Non-Revenue User Fee Non-Revenue & (Tax) Revenue
    Document Type Indicator DLN
    Block/Batch TIN
    Sequence Number Name Control
    Deposit Date MFT
    TIN Tax Period
    Name Control Multiple Indicator
    Account Number Received Date
    Multiple Indicator  

    If And Then
    Check encoded with "S" Includes DLN Check is for payments split between user fees and tax. (DLN reflects the tax payment.)

  2. The account number for user fees is:

    1. Origination fee of $52 for Direct Debit Installment Agreements (DDIA) with agreement acceptance dates of Jan. 2, 2007 and later. With earlier acceptance dates, the fee was $43.

    2. Origination fee of $105 for all other IAs, with agreement acceptance dates of Jan. 2, 2007 and later. With earlier acceptance dates, the fee was $43.

    3. Reinstatement/Restructuring fee of $45 for all IAs reinstated or revised after Jan. 2, 2007. With earlier acceptance dates, the fee was $24.

    4. Reduced Origination fee and Reduced Direct Debit Installment Agreements (DDIA) fee of $43 for Low Income Taxpayers with acceptance dates of January 2, 2007 and later. This fee was effective as of January 2, 2007.

  3. If a user fee payment cannot be located, transfer/reassign the case to the Compliance Services Collection Operation (CSCO), at the campus that processed the payment.

  4. CSCO will research the following User Fee Reports in Accounting:

    • User Fee Block Detail Listing - Lists payment, payment date, and Batch/Block Number

    • User Fee Batch/Block Totals Report - Lists block of payments for each date, Batch/Block Number, account number, number of items, and Batch/Block Amount

    • User Fee Split Balance Report - Lists payments split between User Fees and Tax payments, Sequence Number, TIN, Remittance Amount, User Fee Amount, and Revenue amount (payment other than user fee amounts

  5. User fees related to installment agreements are on IDRS under MFT 13 or 55. MFT 13 or 55 is created when the CP 521 is generated. A TC 971 AC 82 or 83 will be sent to Master File to establish the module. Unlike other MFT 13 or 55 accounts, there will be no reference numbers. You must use CFOL command codes to research these modules. The user fee recovery program continued during 2002. In 2003, a new category was established on the Installment Agreement Accounts List, IAAL, for duplicate payments. Use command code ADD/ADC24 to move payments found on MFTs 13 or 55. For additional information see IRM 5.19.1.5.4.3.3, User Fee Payment Transfer/User Fee Abatements.

21.5.7.4.7.6  (10-01-2007)
Justice Department Lockbox Receipts

  1. These receipts result from court actions and IRS referrals to Department of Justice (DOJ) for collection. Atlanta Submission Processing Center receives Standard Form 1081, Voucher and Schedule of Withdrawals and Credits, as notification of tax revenue secured by the (DOJ).

  2. If a taxpayer's canceled remittance shows a DOJ endorsement:

    1. Transfer the case to ATSC, HPTF

    2. Issue 86C Letter to notify taxpayer the inquiry was transferred to ATSC

    3. Delay notices as appropriate

  3. Prepare Form 3210, Document Transmittal, to include:

    1. Payment Tracer Request - Department of Justice Inquiry - Accounting Control/Services Operation, ATSC — HPTF Stop 151

    2. Taxpayer’s name, TIN, and tax period

    3. TC 470 or CC STAUP input

    4. Date 86C Letter was sent

  4. HPTF will coordinate the resolution with Accounting personnel in accordance with IRM 3.17.30.13, Revenue Receipts.

21.5.7.4.7.7  (10-01-2003)
Cashier’s Check

  1. Cashier’s checks may be purchased from banks or other financial institutions.

  2. Receipts or copies of personal checks, used to purchase cashiers checks, only serve as proof of payment to initiate research. Taxpayer is responsible for contacting the vendor for a copy of the canceled check.

    If And Then
    Payment cannot be located   Request a copy of the canceled check from taxpayer. Close the case. Input CC STAUP for 6 cycles.
    Payment has not cleared the bank Bank will not issue a duplicate check unless they have an indemnity agreement Secure an indemnity agreement. Follow the procedures in IRM 3.17.243, Miscellaneous Accounting, and IRM 3.0.167 , Losses and Shortages, regarding indemnity agreements.

21.5.7.4.7.8  (10-01-2003)
Money Orders

  1. Money order vendors leave the payee, payer, and date information blank on the money order. Taxpayer is responsible for providing this information.

    If And Then
    Payment cannot be located   Request that taxpayer contact vendor for photocopies of the money order. Close the case. Input CC STAUP for 6 cycles.
    Money order was not cashed Issuing company requests an indemnity agreement Follow the procedures in IRM 3.17.243, Miscellaneous Accounting and IRM 3.0.167, Losses and Shortages, to secure an indemnity agreement.

21.5.7.4.7.9  (10-01-2003)
Truncated Checks

  1. Truncated checks are carbonless copies of original checks. Financial institutions no longer returning canceled checks to their clients furnish these check books.

  2. If the payment cannot be located, send the taxpayer 167C Letter, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, to request they contact the bank for a microfilm or computer image of the check. Close the case and input CC STAUP for 6 cycles.

21.5.7.4.7.10  (10-01-2004)
Cash Payments

  1. Field/Area Offices issue Form 809, Receipt for Payment of Taxes, or a cash register receipt to taxpayer for cash payments.

  2. The tax return is validated at the time of receipt showing the amount and type of tax paid.

  3. The field/area office prepares Form 783, Remittance Register, or Form 795, Daily Report of Collection Activity, to list the payments. These forms are sent to the Submission Processing campus.

  4. Research IDRS, including CC URINQ and XSINQ and RTR if available for these remittances.

  5. If unable to locate the payment, prepare Form 4446, Payment Tracer Research Record . Transfer the case to the HPTF at the campus that processed the payment or processed the most recent payments.

  6. HPTF will verify Form 813 for the payment. HPTF will contact Internal Security, before allowing a substantiated credit from Account 6570, based on Form 809 as proof of payment.

    Note:

    If unable to locate, it may be necessary to contact the field/area office that took the payment in and request a copy of the money order purchased for the cash payment.

21.5.7.4.7.11  (01-30-2006)
Automated Non-Master File (ANMF) Payments

  1. A DLN with a tax class "6" (the 3rd digit of the DLN) identifies a payment as Non-Master File (NMF). A flashing "N" at the bottom of the ENMOD, SUMRY and TXMOD screens indicate there is a NMF account at another Submission Processing (SP) Center. To access the NMF account, an "N" is input after the TIN on SUMRY or TXMOD.

    Note:

    All NMF accounts were centralized at the Cincinnati Campus as of September 2006.

  2. All Automated Non-Master File (ANMF) open accounts are available for research via Desk Top Integration (DI). DI users will see a NMF alert in the DI Account Summary Alerts section. A NMF password is not required to access the DI NMF information. DI provides access to transcript information for all open ANMF modules. The DI NMF transcript is available for printing, however it is for "INTERNAL USE ONLY."

    Note:

    Never send the DI NMF transcript to the taxpayer. While working your payment tracer case, if the taxpayer requests a copy of their NMF transcript and/or payoff information and you are not a NMF CSR, refer them to the NMF toll-free number, 1-888-829-7434 for assistance. The NMF CSR will provide a user friendly transcript and payoff information as requested.

  3. Contact the Accounting NMF function for researching payments dated before 1992, pre-ANMF payments. If the payment is found in another campus, request the credit be transferred to taxpayer's account. See IRM 3.17.46, Automated Non-Master File Accounting, for instructions on requesting NMF research and transcripts.

    Note:

    January 1, 2001, Master File introduced the new MFT 31, Separate Assessment Module. MFT 31 contains split spousal assessments previously processed to the ANMF System. Any new separate spousal assessments established on or after January 1, 2001, will be processed on MFT 31. Any spousal assessments processed prior to January 1, 2001, will remain on the ANMF and must be researched using the above NMF procedures. For more information regarding MFT 31, Split Spousal Assessments, refer to IRM 21.6.8, Split Spousal Assessments (MFT 31). Follow normal payment tracing procedures for MFT 31 accounts.

21.5.7.4.7.12  (10-01-2007)
Foreign Remittances

  1. All international or possession returns with remittances are deposited where received. As of July 1, 2007, IMF international returns are sent to the Austin campus and BMF international returns are sent to the Ogden campus. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have U.S. bank’s routing symbol printed in the lower left corner of the check and have a nine digit routing number. These are processed as a regular deposit.

  2. Any foreign remittance including remittances that are payable in U. S. dollars, drawn on foreign banks, and received with tax returns or documents, that fail to meet any portion of (1) above will be processed using manual deposit. The deposits are then mailed to Citibank in Wilmington, Delaware and numbered and processed as a foreign remittance.

  3. Receipt and Control will process source documents with remittances that are payable in foreign currency and drawn on foreign banks as manual deposits. The deposits are mailed to Citibank for a money conversion report.

  4. When foreign currency is received, Receipt and Control will contact Bank of America to convert foreign currency to U. S. dollars. The tax return or document will be processed using manual deposit guidelines.

  5. Each campus has specific deposit processing procedures. See IRM 3.8.45.26, Specific Campuses Processing.

  6. For additional information on foreign remittances, see IRM 3.8.45.15, Foreign Check Remittances.

21.5.7.4.7.13  (10-01-2008)
Treasury Bonds

  1. Using Treasury bonds to pay taxes on Form 706, United States Estate and Generation Skipping Transfer Tax Return, were due on November 15, 1998; therefore, the information in this section is being removed..

21.5.7.4.7.14  (10-01-2005)
Free Items

  1. If taxpayer's canceled check is stamped "FI" , it indicates the bank is holding credits belonging to taxpayer, referred to as "Free Items."

  2. If the case involves "Free Items " :

    1. Obtain a current transcript of the account

    2. Prepare Form 4446, Payment Tracer Research Record

    3. Route to the HPTF function at the campus center that is responsible for processing the payment when it is received

    4. The HPTF will initiate action to obtain the credit from the bank

21.5.7.4.7.15  (01-30-2006)
Federal Tax Deposits (FTD)

  1. Under the Federal Tax Deposit (FTD) system, taxpayers are not permitted to make FTD payments directly to IRS. Effective October 2000, the former system used to process FTD payments, Treasury Tax and Loan System (TT&L) was replaced by PATAX (Paper Tax). The PATAX system consolidated FTDs into one Federal Reserve Bank (FRB). All commercial banks accepting FTDs report deposits to St. Louis FRB.

  2. The following tax returns require payments to be made through an FTD submission:

    Form Requiring FTD Submission
    Form 720 Form 943 Form 990-PF Form 1042
    Form 940 Form 945 Form 990-T Form 1120
    Form 941 Form 990-C Form CT-1  

    Note:

    Even though most Form 944, Employer's Annual Federal Tax Return, filers will not make federal tax deposits, you may see them posted to MFT 14 for the Form 944.

  3. This section covers tracing an FTD payment tracer case.

    • Identifying FTDs

    • IDRS/SCRIPS Research of FTDs

    • Researching Microfilm FTDs

    • Requesting Information to Identify an FTD

    • Mis-dated FTDs

    • FTD Processed as a Subsequent Payment

    • FTD Discrepancies

  4. Refer to IRM 20.1.4, Failure to Deposit Penalty, for documentation requirements prior to abating FTD penalty for date discrepancies.

  5. For additional information on FTDs see IRM 3.5.17 , Federal Tax Deposit System, and Document 6209, IRS Processing Codes and Information.

21.5.7.4.7.15.1  (10-01-2003)
Identifying FTDs

  1. FTD deposits are made through coupons or electronic deposit. Paper FTDs were processed in five Submission Processing Sites until August 28, 2002.

    Note:

    Effective August 28, 2002, Memphis Submission Processing Center no longer processes FTDs.

  2. There are now four FTD processing sites:

    • ASPC

    • CSPC

    • KSPC

    • OSPC

  3. The FTD deposit Microfilm Serial Number, shown on IDRS, identifies the campus that processed the FTD.

21.5.7.4.7.15.2  (10-01-2004)
Researching Microfilm FTDs

  1. Research the Federal Tax Deposit Received Registers (money tapes) if the FTD is not found on IDRS. Use the EIN and/or money amount for research. See IRM 2.3.18, Command Code ESTABM, for additional information. Any requests for FTD copies via ESTAB from microfilm should indicate the year in which the payment was made and the campus where the payment was processed in the remarks section of the request. Requests which do not include a year, will be researched for the current year only.

    Command Code Research Using
    ESTABMZ Money amount
    ESTABM4 Microfilm copy of the FTD coupon processed on the OCR system. (Prior to cycle 9442)
    ESTABS Microfilm copy of the AOC and/or FTD coupon from SCRIPS (After cycle 9442)
    ESTAB Definer " B" Block
    ESTAB Definer " F" FTD
    ESTAB Definer " H" , Header

    Note:

    Depository banks use Treasury Form 2284, Federal Tax Deposit Advice of Credit Treasury Tax and Loan Account, to send FTD deposits directly to the campus. If Form 2284is not available, the depository routes the FTD coupons to the Federal Reserve Bank (FRB). The FRB then prepares the AOC and forwards Copy 3 and the coupons to the campus. When requesting coupons or AOC from SCRIPS Archive system, that were not processed at your site, send the request to the center that processed the FTD coupon. For more information on requesting the documents, see IRM 2.3.62, Command Code ESTAB.

  2. Requests for images of coupons processed through SCRIPS are printed in the SCRIPS area each day. SCRIPS will sort the requests by the 5–digit office identifying number on the request and route to the appropriate campus/office via Form 3210 when the image is received. If no image is received the requestor should verify the information input to IDRS was correct. The primary reason for images not being delivered is that the requestor using CC ESTABS fails to input a valid 17–digit SCRIPS FTD Sequence Number.The first two digits of the number must be the year the coupon was processed. Many requestors will incorrectly use the campus reference number, e.g., 09 for Kansas City, for the first two digits. This will cause a search failure as 09 would indicate year 2009.

21.5.7.4.7.15.3  (04-19-2006)
Requesting Information To Identify an FTD

  1. Request a photocopy of the front and back of the cancelled check, if the missing deposit is not located on IDRS.

    1. Prepare Form 4446, Payment Tracer Research Record.

    2. If the check was paid to the bank as an FTD, send 878C Letter, FTD Payment Tracer; Advice of Credit Requested from Bank, and a copy of the check to the commercial bank’s Operations Officer requesting FTD header information needed to locate the missing or misapplied payments. Once your header card is received from files, verify 878C Letter was sent to the correct bank. If not, reissue 878C Letter. Keep a copy of 878C Letter or the input screen with your case file.

  2. The case and response to the 878C Letter will be forwarded to the HPTF if:

    • No response was received after 20 work days of the 878C Letter

    • There is a discrepancy between the Advice of Credit, Treasury Form 2284, and the Block Completion List, FTD 61–55. The Block Completion List is used for various research purposes, including FTD reversals, locate FTD sequence number/microfilm serial numbers, and to find missing payments

  3. The case and response is needed by HPTF to verify that a letter was mailed to the bank and must be attached to Form 4446 , Payment Tracer Research Record. Forward Form 4446 and required documentation to the HPTF that processed the deposit or processed the most recent deposits. Reassign the case to HPTF. See IRM 21.5.7.4.4.1 , Form 4446 Payment Tracer Research Record, for additional information.

    Note:

    The FTD CBAF, Federal Tax Deposit Commercial Bank Address File, contains bank addresses, ABA/RTN numbers etc. of those banks that participate in Federal Tax Deposits (FTD) system. You can access the FTD Commercial Bank Address File (CBAF) under the Who/Where tab on the SERP home page.

  4. Take the following action based on the 878C Letter reply:

    If And Then
    Bank states deposit was located in taxpayer's checking or savings account Never used as an FTD Close the case. Notify the taxpayer.
    Bank states deposit was located Applied to another loan or account Close the case. Notify the taxpayer to contact their financial institution for resolution.
    Bank states deposit was not forwarded originally Bank recently submitted the FTD for processing Monitor the account for the deposit to post. After it posts, follow IRM 20.1.4.14 , Misdated Deposits.
    Bank states deposit cannot be located   Forward to HPTF who will contact the Interagency Coordinator (IAC) in the FTD Unit. See Interagency Coordinators under the WHO/WHERE tab on SERP for a list of coordinators.
    Bank replies with Form 2284,Advice of Credit There is a discrepancy between the Block Completion List and AOC Forward to HPTF who will contact the IAC. See Interagency Coordinators under the WHO/WHERE tab on SERP for a list of coordinators.
    Bank does not reply within 20 workdays of the 878C Letter   Forward to HPTF who will contact the IAC. See Interagency Coordinators under the WHO/WHERE tab on SERP for a list of coordinators.

    Note:

    The IAC in the FTD Unit will coordinate with the bank in securing the information requested on the 878C Letter. The FTD unit should neither accept the actual case folder from HPTF nor have the case reassigned to them. See IRM 3.5.17,Federal Tax Deposit System, for additional information on FTD payment tracers and the assistance provided by the FTD Unit/IAC.

  5. If the bank replies to the Interagency Coordinator there is no record of the taxpayer's deposit, HPTF will close the case and respond to taxpayer.

21.5.7.4.7.15.4  (04-19-2006)
Misdated FTD

  1. If there is a discrepancy between the IRS transaction date of the TC 650 and taxpayer's deposit date, secure the following:

    • Copy of the processed check

    • Photocopy of the FTD coupon

    • Photocopy of the AOC

  2. Verify that taxpayer’s check agrees with the FTD date stamp or the AOC deposit date, and matches the transaction date.

    If And Then
    Taxpayer’s receipt agrees with the FTD coupon or AOC Matches the transaction date Send taxpayer a letter stating the transaction date is correct. Enclose a photocopy of the FTD coupon.
    Taxpayer’s receipt agrees with the FTD or AOC (IRS error) Does not match the transaction date Input a credit transfer to correct the transaction date to the receipt date. Do NOT input REQ77.
    Taxpayer’s receipt does not agree with the FTD and/or AOC (Bank error)   The bank must complete Form 13287, Bank Payment Problem Identification. Refer to IRM 20.1.4.14.1.1 , Authorized Depositaries. Input Staup for 6 cycles to allow the taxpayer time to submit the form. Close your case.

    Note:

    See IRM 20.1.4.14, Misdated Deposit, for additional information. When the intended payment date (information provided by the taxpayer) is input in the Secondary DT field, Master File will recompute the penalty analysis on the intended payment date. If the payment is timely, no penalty will be assessed. (Manually adjust the failure to deposit penalty if it has been manually restricted.)

  3. An electronic file will generate as a result of the REQ77 TC 971 input and is sent to FMS automatically. The authorized depositaries are required to provide the documentation to FMS for any assessment disagreements. Authorized depositaries will be required to present FMS with "cancelled checks," etc. If a dispute arises, FMS will request through the campus IAC, a copy of the AOC and/or a copy of the FTD coupon which can be accessed through SCRIPS.

21.5.7.4.7.15.5  (10-01-2008)
FTD Processed as a Subsequent Payment

  1. A TC 670 will show on taxpayer’s account if a depository bank forwards a covering check to IRS, rather than the AOC and FTDs.

  2. The depository bank is subject to a penalty charge from the Federal Reserve Bank for not properly processing through the Federal Tax Deposit System if the taxpayer’s deposit was held before sending the covering check to IRS.

  3. Request a photocopy of taxpayer’s check if taxpayer is questioning an FTD penalty charge.

  4. Verify the check was made to the commercial bank. Compare the cancellation date on the back of the check with the TC 670 date.

    If And Then
    Both dates agree Check was payable to bank Inform the taxpayer the IRS received date is correct. Change the transaction code to TC 650.
    Both dates agree Check was payable to IRS Inform taxpayer the IRS received date is correct. Do not change the transaction code to TC 650.
    Dates differ Check was payable to Bank Input a credit transfer to change the transaction to TC 650, using the transaction date on the back of the check.
    Dates differ Check was payable to IRS Input a credit transfer to change the transaction date, using the date of taxpayer’s canceled check. Do not change the transaction code. Do not manually abate the penalty.

21.5.7.4.7.15.6  (10-01-2007)
FTD Discrepancies

  1. Taxpayer or depositary may make an error when completing the amount portion of the FTD coupon. To correct this error, the depositary must forward a letter through the Federal Reserve Bank to the appropriate campus.

  2. If a discrepancy is identified between the amount of the FTD credit and the amount of the canceled check, request the:

    • Entire block of SCRIPS images

    • AOC

  3. If the block of coupons does not resolve the discrepancy, check the Block Completion List (BCL), if access available. Compare the amount on the BCL with the amount on the AOC.

    If And Then
    BCL and AOC amounts match Coupon was written for less than the check Return copies of the canceled check and FTD coupon to taxpayer using 672C Letter, Payment(s) Located and/or Applied, . Inform taxpayer of the current balance due and to contact the depositary for resolution of the understated payment.
    BCL and AOC amounts did not match   Send Form 4446, Payment Tracer Research Record, to HPTF. Input TC 470 (no closing code), if the payment will fully satisfy liability.
    BCL is unavailable   Send Form 4446 to HPTF. Input TC 470 (no closing code), if the payment will fully satisfy liability.

  4. Request a manual lien release (TC 582, lien indicator) in the following situations

    • The lien will not systemically release

    • The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days

    • It has been more than 30 days since the account was fully satisfied

    See IRM 5.12.3.2.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release, Partial Release, or Withdrawal of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.

  5. HPTF will take the following actions:

    If And Then
    BCL amount did not match the AOC Coupon was written for more than the check Input TC 570 on the tax module. Return copies of the canceled check and FTD coupon to taxpayer using 672C Letter. Inform taxpayer to contact the depositary for resolution of the overstated payment. Send copies of the AOC, FTD coupon, and canceled check to the IAC. Request IAC contact the Federal Reserve Bank of St. Louis to reverse the overstated payment.
    BCL amount did not match the AOC Coupon was written for less than the check Send copies of the AOC, FTD coupon and canceled check to the IAC. Request the IAC to contact the bank to initiate a correction.
    Bank or IRS caused the error   Send copies of the AOC, FTD coupon, and canceled check to the IAC. Request the IAC contact the bank to initiate a correction.

    Note:

    Send to the IAC of the campus currently processing the FTD. See Interagency Coordinators under the WHO/WHERE tab on SERP for a list of coordinators.

21.5.7.4.7.16  (03-14-2008)
Electronic Federal Tax Payment System (EFTPS)

  1. Electronic Federal Tax Payment System (EFTPS) is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes.

  2. The system has been programmed to accept payments for tax years 1954 and subsequent.

  3. Effective March 2004, Bank of America is the sole Financial Agent for EFTPS.

  4. Taxpayers must enroll with the financial agent for IRS pre-validation before using the system. Taxpayer may make payments to the financial agent by personal computer, telephone, or bank.

  5. Electronic funds withdrawal (EFW) is another method of paying electronically while filing electronically. The taxpayer authorizes an electronic withdrawal of funds from a designated checking or savings account during the e-file transaction.

    Note:

    Both EFTPS and EFW payments are electronic fund transfers.

  6. Payments made by EFT will show File Location Code numbers 71 (1996), or 72 (1997 through 6/30/2005), or 81 (after 6/30/2005) and Document Code 19 in the DLN. The TUS Number and Microfilm Serial Number were replaced with a Electronic Funds Transfer Number.

  7. Payments processed through EFTPS can be identified through the EFT number shown on IDRS. After taxpayer enters the information, EFTPS supplies an acknowledgment number to the taxpayer. Taxpayers should write down this number and keep it for future reference. If there is any problem with the payment, this number allows IRS to trace the payment quickly. Customer service representatives can construct the EFT number from taxpayer provided acknowledgment number using the following elements for payments made prior to January 1, 2004. Payments made after January 1, 2004, should be constructed using the chart in IRM 3.17.277.4.3, EFT Number.

    Electronic Funds Transfer 17 Digit Number
    Digits Identifies Numbers
    1& 2 Processing Campus  
      e.g., Memphis (campus code), Ogden after 6/30/2005. 49/29
    3 Financial Agent  
      JP Morgan Chase & Co.
    Prior to March 2004     		1
      Bank of America 2
      FMS Treasury Offset Program 3
      Reserved 4
      Federal Reserve Bank of Cleveland for Paper Check Conversion 5
    4 Payment Method  
      e-file Debit 0
      ACH Credit (EFTPs through your financial institution) 1
      ACH Debit (EFTPS Direct) 2
      FR-ETA 3
      Reserved 4
      Levy 5
      Credit Card 6
      EFTPS-Online 7
      Railroad Retirement Board 8
      Government (FEDTAX II or Federal Payment Levy Program) 9
    5 Payment Indicator

    Note:

    This is dependent on Position 2 - Payment Method. See IRM 3.17.277.4.3 (4), EFT Numbers, for details.

    		 
    6–9 julian Date Last digit of the year plus 001–366, or Last digit of the year plus 401–766
    10–11 Bulk provider number (see note)  
    10–17, or 12–17 Serial Numbers Sequentially Assigned

    Note:

    When the combined payment indicator (position 5) is 7, 8, or 9, positions 10 and 11 are used to identify the bulk filer who submitted the payment.

  8. All Bulk Providers are under Bank of America (BOA) effective 7/1/2005.

    Position 10 and 11 Type of Payment Phone Number
    01 - 05 ADP 909-592-6411 ex 2708 or 909-592-6526
    06 - 10 Dabco/Cash Tax 720-332-3648
    11 - 17 Trust Banks  
    18 - 20 State Levies  
    21 - 25 Phone Charge Inc. Historical
    26 - 30 Nation Tax Historical
    31 - 32 Link2Gov (credit cards) 888-658-5465
    41 Advantage 800-876-0178 x20500
    41 Advantage II 800-213-2111 x8206
    43 Ceridian STS 800-829-7761 x1028
    44 Ceridian TaxTel 800-829-7791 x1028
    45 Compupay 305-477-1700 x630
    46 Computing Resources 775-727-8000 x–55958, x–55958, x–55960, or x–55948
    48 Interpay 508-337-7772 or 7738
    49 - 51 NOVUS/Discover e-file (credit cards) 623-643-1322
    54 - 55 Paychex 585-216-0725
    56 Payroll One 248-691-2546
    57 Payroll People 559-251-9060 x–280 or 208-983-5201
    58 Payroll Service Center 518-765-3370
    59 - 61 Official Payment Corporation 925-855-5019, 5010
    62 Computer Language Research (Fast Tax) 972-250-8533 or 7385
    63 Northern Trust 312-444-4427 or 312-557-6053

    Note:

    Phone numbers are for IRS use only.

  9. IDRS Command Code EFTPS is a research tool developed primarily for payment tracer purposes. The command code researches the EFTPS data base for payment data and audit history.

  10. Research the payment using CC EFTPS by:

    1. TIN, EFT Amount and, Payment Date - Definer T;

    2. Taxpayer supplied EFT Number - Definer E; or

    3. Taxpayer supplied Reference Number (Confirmation Number for Credit Card Payments) - Definer R

    Note:

    See IRM 2.3.70, Command Code EFTPS, for additional information.

  11. If you do not have the EFT number, advise the taxpayer to contact the EFTPS customer service center to obtain the EFT number. The EFTPS toll-free numbers for customer service are:

    • English (Business) 1-800-555-4477

    • English (Individual) 1-800-316-6541

    • Spanish 1-800-244-4829

    • Telecommunications Deaf Devices (TDD) 1-800-733-4829

    • Financial Institutions 1-800-605-9876

    The EFTPS toll-free numbers are available 24 hours a day, 7 days a week.

  12. If IDRS CC EFTPS indicates that EFTPS processed the payment to Master File with the correct taxpayer information; however, the payment has not posted to the tax module displayed, research the Closed Unpostable Register, GUF 57–40 at Ogden Campus (@29). All EFTPS payments are processed in Ogden. For additional information see IRM 3.12.37.14.3, Researching Rejected Unpostables .

  13. If the CC EFTPS response indicates no records were found for your input,

    1. Recheck your input parameters and resubmit, or

    2. EFTPS did not receive the payment

  14. If the payment was not received by the EFTPS system and the taxpayer states a payment was made through a service provided by his/her financial institution,

    • Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent. If the payment can still not be located, the taxpayer should obtain a paper proof of payment from their financial institution.

    Note:

    The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number in order to correct the taxpayer’s account.

  15. If the payment was not received by the EFTPS system and the taxpayer states a payment was wired to the IRS:

    • Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent.

    • The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number in order to correct the taxpayer’s account.

    Note:

    Wire payments are processed through the Electronic Tax Application (ETA) at the Federal Reserve Bank of Minneapolis.

  16. See IRM 3.17.277, Electronic Payments, for more information on EFTPS.

21.5.7.4.7.16.1  (10-01-2006)
Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer

  1. The following procedures should be followed to trace payments made by electronic funds withdrawal (direct debit) or credit card. Obtain the following information from the taxpayer:

    • Taxpayer’s Name

    • Taxpayer’s TIN

    • Date of Payment

    • Amount of Payment

    • Type of Tax Paid: Form 1040 , Form 1040 Balance Due Notice, Form 1040 Advanced Payment of Determined Deficiency, Form 1120 Series (Corporate Returns), Extensions Forms 7004 and 8868,Form 4868 (Extension of time to File), Form 1040-ES (Estimated taxes), Form 2350 (Extension of Time to File ), Form 941 (Quarterly Employment Return), Form 940 (Unemployment Return), Form 944 (Employers Annual Federal Tax Return) Form 1041 (Estate and Trust Return), Installment Agreement payments

    • Tax Year

    • Payment method (electronic funds withdrawal for an e-file and e-pay return or a credit card payment for an Integrated e-file and e-pay return, Pay by Phone, or Pay by Internet transaction)

    • Credit Card Payment Confirmation Number (if paid by phone or Internet) or a Declaration Control Number (if paid through an Integrated e-file and e-pay option)

    • Credit Card Service Provider (if payment method is credit card through either the phone or Internet)

  2. These payments are subsequently processed through EFTPS. Research EFTPS by following the EFTPS payment tracer guidelines and by using Command Code (CC) EFTPS to ensure that the Service processed the payment. See IRM 21.5.7.3.2, IDRS Research, and IRM 21.5.7.3.7 , Researching Unpostable Payments, for IDRS research and unpostable payments instructions. Payments will appear on CC EFTPS before posting to Master File. If the payment is found using CC EFTPS inform taxpayer payment has been received. If the payment has posted, the EFT number on IDRS will identify it. If the payment cannot be found, check the unidentified remittance file.

    • The fourth digit in the EFT number will be a "0" for electronic funds withdrawal (direct debit) payments

    • The fourth digit in the EFT number will be a "6" for credit card payments

    • If the payment needs to be transferred, the credit transfer transaction must include the Electronic Payment Indicator

    Note:

    If the 1040 payment is resequencing at Master File waiting for the return to post, CC EFTPS and CC IMFOL Definer Q will be the only research method available to identify the receipt of the payment.

  3. Electronic funds withdrawal transactions generally post to master file one to two cycles after the effective date of the payment.

  4. If the taxpayer e-filed the return with an electronic funds withdrawal payment and the payment cannot be located by using CC EFTPS:

    1. Check to see if the taxpayer properly entered the withdrawal request on the e-filed return by using CC TRDBV. See IRM 21.7.4.4.4.15,Electronic Filing of Corporate Returns, for information on electronically filed Form 1120, Form 1120S and Form 990

    2. On the first page of CC TRDBV, there is a list of forms filed with the return. The form that indicates that the taxpayer requested an electronic funds withdrawal is titled "FORM-PYMNT"

    3. The access code shown to the left of " FORM-PYMNT" may be entered on the top line of the TRDPG screen to bring up the FORM-PYMNT. The FORM-PYMNT will show the:
      RTN
      Bank Account Number
      Payment Amount
      Account Type (savings or checking)
      Date the Taxpayer Requested the Money be Withdrawn From Their Bank Account

    4. If CC TRDBV shows the "FORM-PYMNT" , the payment will be processed through EFTPS unless it was cancelled

    5. If TRDBV does not show a "FORM-PYMT" , instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances

    Note:

    Form 1040 balance due e-filed returns do not post until cycle 20 or one cycle after the full payment posts to the account, whichever occurs first.

  5. Credit card payments usually post 5–7 business days after the payment is completed and will appear on the appropriate Taxpayer Information File (TIF) as a pending transaction using CC TXMOD.

  6. If the credit card payment was made through an Integrated e-file and e-pay option, research CC EFTPS for the payment. If the payment is not shown, refer the taxpayer to their software package or tax professional for further assistance.

  7. If the credit card payment was made by phone or internet, check different tax periods to ensure that the taxpayer did not select the wrong tax type (for example, chose current year 1040-ES instead of prior year 1040). Also, verify what TIN was used for the transaction.

    Note:

    Joint filers who submitted the transaction under the secondary SSN instead of the primary SSN may require a credit transfer.

  8. If the credit card payment cannot be located using research, Command Code EFTPS and IMFOLQ or the unidentified remittance file, and the taxpayer has a confirmation number for a pay by phone or pay by Internet transaction, the taxpayer will have to be referred to the service provider they used to trace the payment.

    • Link2Gov, 1–888–658–5465, toll-free

    • Official Payments Corporation, 1-877-754-4420, Option 5, toll-free

  9. The credit card confirmation number (Pay by Phone or Pay by Internet) will include 7 numeric characters.

    • If the last character is a "1" the payment was made through the Official Payments Corporation

    • If the last character is a "3" the payment was made through The Link2Gov Corporation

  10. If the credit card payment was made through either a pay by phone or Internet option but the taxpayer does not have a confirmation number and no payment can be located on IRS records, the taxpayer should contact the service provider they used for assistance.

  11. If the credit card payment cannot be located, the service provider cannot verify the payment and the payment is not reflected on the credit card billing statement, the taxpayer should be instructed to make a payment for the full amount due and attach an explanation of the circumstances.

21.5.7.4.7.16.2  (10-01-2003)
Direct Debit Installment Agreements

  1. Direct Debit Installment Agreements (DDIA) is a Collection program. Taxpayers make arrangements to repay tax liabilities in installments via Electronic Funds Transfers.

  2. Payments post to Master File as TC 670, Document Code 18, Blocking Series 800-899.

  3. Prepare Form 4446, Payment Tracer Research Record, and route to HPTF, if unable to locate the payment.

  4. HPTF will research the following computer runs maintained in Accounting:

    • EFT 12, Generates DDIA payments and posts TC 670 to taxpayer’s accounts

    • EFT 16, Creates the EFT Credit and Debit Register and IDRS assigned DLN

    • EFT 18, Generates notice to Compliance Services Collection Operation, if payments fail to post properly and posts TC 671 and TC 280 to taxpayer’s accounts

21.5.7.4.7.17  (10-01-2007)
Lloyds of London Taxpayers

  1. Lloyds of London makes quarterly deposits for some 1040ES/NR taxpayers via Electronic Funds Transfer (EFT). As of July 1, 2007 these deposits are made at the Kansas City campus only.

  2. For payments made to Philadelphia prior to July, 2007 prepare Form 4446, Payment Tracer Research Record, and route to HPTF, in the Ogden campus if unable to locate the payment.

  3. HPTF will research the Fedwire Deposit System support listing maintained in Accounting by the payment date.

21.5.7.4.7.18  (10-01-2003)
State Income Tax Levy Program (SITLP)

  1. The State Income Tax Levy Program (SITLP) is an automated levy program. SITLP matches a Master File database of delinquent taxpayers eligible to be levied, against a database of state tax refunds for each state participating in SITLP. Currently, this process only matches against IMF accounts.

  2. Martinsburg Computing Center (MCC) creates SITLP files for states to process biweekly. Files are created and shipped during even cycles. The states generally process the SITLP file for a two-week period, and creates a cartridge that is sent to the appropriate campus for processing. The state sends the cartridge with a paper check for the total amount of the SITLP levy proceeds to a SITLP Coordinator at the processing campus or transmits the payment electronically via EFTPS.

  3. Each state is required to send the taxpayer correspondence advising of the SITLP levy and refer any inquiries to the ACS toll-free telephone number. Taxpayers may receive the state notice weeks before the IRS notice, CP 92, is issued. As a result, little information is available. This has resulted in telephone calls by IRS employees to state taxing agencies. FRONT-LINE ASSISTORS SHOULD NOT CALL STATE TAXING AGENCIES.

  4. When it is determined that a taxpayer is not excluded from the SITLP levy, the combination of a transaction code (TC) 971 Action Code (AC) 600 and a TC 670 Designated Payment Code (DPC) 20/21 on a tax module generates the CP 92.

  5. If a TC 971 AC 600 is present without a corresponding TC 670 DPC 20 or 21, it is likely the levy proceeds are forthcoming, or were previously applied to other modules.

  6. If both the TC 971 AC 600 and a TC 670 DPC 20/21 are present, then the SITLP levy proceeds were applied to the tax module.

  7. If the taxpayer wants to resolve the remaining balance, discuss full pay, installment agreement, offer in compromise, etc. See IRM 5.19.1, Balance Due.

  8. If the SITLP levy was erroneous, procedures should be followed to issue a manual refund.

    Note:

    Wrongful levy cases and urgent situations requiring refunding of SITLP payments should be discussed with the SITLP Coordinator. They will determine if a wrongful levy situation has occurred or if the State needs to be contacted.

  9. If after all research has been completed and you are unable to locate the payment, prepare Form 4446, Payment Tracer Research Record, and route to HPTF. HPTF will research TDA56, Payment Detail Report, which is maintained in Accounting. The listing is in TIN order and contains the transaction date and amount of the state refund used to offset the federal liability.

  10. See IRM 5.19.9, Automated Levy Programs, and IRM 5.11.7 , Automated Levy Programs, for more information on SITLP inquiries, exclusion criteria, and appeals procedures.

21.5.7.4.7.19  (10-01-2003)
Payment Tracer Procedures for Form 8038-T

  1. Missing payments related to Tax Exempt Bonds that are received with Form 8038–T, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate, are worked at the Ogden Accounts Management Campus (OAMC) in the Exempt Organization Accounts Team. Form 8038-T is the only Tax Exempt Bond that is received with a remittance (with the exception of closing agreements). The remittance is identified as the green rockered money and processed as a TC 610 to the Master File.

  2. Any campus receiving Form 8038-T payment tracer cases should transship the case to OAMC, Exempt Organization Accounts Team using Form 3210, Document Transmittal. Ogden will follow the procedures in IRM 21.7.7.5.4.3, TEB Payment Tracer Procedures , to resolve the case.

Exhibit 21.5.7-1  (11-15-2007)
HARDCORE PAYMENT TRACER ADDRESSES

HPTF Campus HPTF Campus
IRS Andover Submission Processing Center
310 Lowell St.
HCPT/REFUND UNIT
STOP 321
Andover, MA 01810

(978)474-9569 		IRS Fresno Submission Processing Center
5045 E. Butler
PAYMENT TRACING UNIT
STOP 37103
Fresno, CA 93888

(559) 454-6194
IRS Atlanta Submission Processing Center
P.O. Box 47-421
MISC. PROCESSING
UNIT STOP 151
Doraville, GA 30362

(770)455-1605 		IRS Kansas City Submission Processing Center
P.O. Box 24551
Team 101
STOP 6250, S2
Kansas City, MO 64131

(816) 325-3730
IRS Austin Submission Service Center
P.O. Box 934
Team 202
STOP 6274
AUSC
Austin, TX 78767

(512)460-8580 		IRS Memphis Submission Processing Center

Memphis Hardcore Payment Tracer cases are serviced by the Cincinnati campus. Send these cases to the Cincinnati Submission Processing address shown below.
IRS Brookhaven Submission Processing

Brookhaven Hardcore Payment Tracer cases are serviced by the Cincinnati campus. Send these cases to the Cincinnati Submission Processing address shown below. 		IRS Ogden Submission Processing Center
P.O. Box 9941
PAYMENT TRACER UNIT
STOP 6274
Ogden, UT 84409

(801)620-7801
IRS Cincinnati Submission Processing Center
P.O. Box 2345
Accounting Operations
Stop 21 Team 205
Cincinnati, OH 45201

(859)669-5068 		IRS Philadelphia Submission Processing Center

Philadelphia Hardcore Payment Tracer cases are serviced by the Ogden campus. Send these cases to the Ogden Submission Processing address shown above

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