Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 3. Submission Processing

Chapter 17. Accounting and Data Control

Section 63. Interim Revenue Accounting Control System (Cont. 5)

3.17.63  Interim Revenue Accounting Control System (Cont. 5)

3.17.63.15 
Account Series 6000 Assessments and Settlements (Nominal Account, CR Normal Balance)

3.17.63.15.51  (10-01-2004)
Account 6910 Correction of Misc Revenue (Nominal Account, DR Normal Balance)

  1. This account represents the total amount of reimbursement for miscellaneous revenue.

  2. This account also represents the total amount of reimbursement to lockbox banks for losses that were not their responsibility.

  3. The external subsidiary is the case file supporting this transaction.

3.17.63.15.52  (01-01-2007)
Account 6920, Disbursement Write-Off (Nominal Account, DR Normal Balance)

  1. This account provides internal control and accountability for disbursement losses.

  2. When relief is granted this account will be debited to provide credit to Account 4910, Disbursement Loss.

  3. This account will be credited when an erroneous refund is repaid after relief is granted . Credit Account 9998 for prior fiscal-year reversals.

3.17.63.15.53  (10-01-2004)
Account 6950, DOJ Civil Debt Collection Holdback (Nominal Account, DR Normal Balance) (Atlanta Only)

  1. Each year the appropriations act for DOJ authorizes it to retain 3% of all amounts collected, pursuant to DOJ's civil debt collection litigation activities.

  2. Account 6950 is used to record and journalize the 3% amount retained by DOJ.

  3. F3809s are the external subsidiary record.

3.17.63.15.54  (10-01-2004)
Account 6970 Small Debit and Credit Cleared—FTD (Nominal Account, DR/CR Normal Balance)

  1. This account is used to provide a contra account for Account 6975. It will record the inventory of small debit and credit adjustments, $20.00 and less, written-off from the FRB day, and subsequent day, batch reports.

  2. No external subsidiary record.

3.17.63.15.55  (10-01-2004)
Account 6975 Liability for Small Debits and Credits—FTD (Nominal Account, DR/CR Normal Balance)

  1. This account is provided to clear small debit or credit amounts, $20.00 or less. DTs or DVs will not be prepared and transmitted to the FRB for adjustment amounts of $20.00 or less on a single commercial bank transmittal. The balance of this account will be the net increase or decrease resulting from these small adjustment amounts.

  2. No external subsidiary record.

3.17.63.15.56  (10-01-2004)
Account 6980 Acquired Property Disposed of Other Than Sale (Nominal Account, DR Normal Balance) (Ogden Only)

  1. This account will record the bid-in price or established value of acquired property assigned for administrative use, transferred to other federal agencies, disposed of as shown by approved reports of boards of survey, or the loss of acquired property due to theft or destruction. The balance in Account 6980 represents the total decrease of acquired property during the year other than by sale.

  2. External subsidiary is the case file.

3.17.63.15.57  (10-01-2004)
Account 6985 Profit and Loss on Sale of Acquired Property (Nominal Account, DR/CR Normal Balance) (Ogden Only)

  1. This account records the profit or loss to the government upon the sale of acquired property. In the collection activity, seized property is often bid-in by IRS and assigned a fair-market value. This assigned value is applied to a taxpayers outstanding tax liability as a credit, and the property becomes the property of the U.S. Government. At a later date when the property is disposed of by sale, the difference between the assigned value and the actual sale price is recorded in this account as a profit or loss.

  2. Externally the account will be supported by documentation for each sale.

3.17.63.16  (10-01-2004)
Account Series 7000—Other Assets

  1. This series of accounts records other assets as defined in the annual financial statement. Included are tangible assets such as property acquired in payment of taxes where the government actually holds title to some real or personal property. Also included are such intangible assets as unclassified FTDs which will become a receipt when classified, unconfirmed FTD debit adjustments which represent monies held until relieved by Treasury confirmation, undeposited collections, pending deposits, and losses and shortages pending repayment or relief.

3.17.63.16.1  (10-01-2004)
Account 7001 Unclassified EFTPS/FPLP (Nominal Account, DR Normal Balance) (TAS 20F3820) (Ogden Only)

  1. This receipt account records the total unclassified EFTPS money amounts received but not yet classified to tax class.

3.17.63.16.2  (10-01-2005)
Account 7002 Deposit Funds Receipts/Disbursements (Real Account, DR/CR Normal Balance) (TAS 20X6879)

  1. This receipt and disbursement account records the receipt of monies to be placed in the deposit fund pending some subsequent action, and to record the disbursement of deposit fund monies. Included in the account are amounts received as a result of seizure and sale action, amounts received from taxpayers with OICs, and miscellaneous receipt items held in this account pending legal action or proper application authority.

  2. Receipts for this account are recorded upon preparation of SF 215-A. The campus director is personally accountable for funds until deposits to the Treasury account are confirmed.

  3. Deposit fund monies are considered monies held in trust by the government. No interest is paid on deposit fund monies refunded. However, when sale results in surplus proceeds, interest may be paid on the surplus.

  4. Individual records are maintained in the data base. No external subsidiary record for this account is maintained. Amounts from this account are reported on SF 224 monthly.

3.17.63.16.3  (10-01-2004)
Account 7003 Anti-Drug Special Fund Receipts/Disbursements (Real Account, DR/CR Normal Balance) (TAS 20X5099.1)

  1. Public Law 100–690, Anti-Drug Abuse Act of 1988, passed by Congress on November 18, 1988, stipulated a special fund account would be established to hold a portion of receipts which were collected as a result of information supplied by state or local law enforcement agencies, for reimbursement to those agencies for certain expenses incurred.

  2. This account will be used for both receipts and disbursements.

  3. This account will be used to record the receipt of monies collected as a result of information received from state and local law enforcement agencies, which substantially contributed to the recovery of federal taxes from illegal drug or related money laundering activities. If the state or local law enforcement agency notifies IRS they plan to submit a claim for reimbursement for expenses incurred, and if collection is $50,000 or more, 10% of the monies collected will be reclassified from the account in which tax was assessed and collected to this special fund TAS.

  4. Any such collections of federal tax will be assessed and deposited in the revenue receipt or deposit fund account, and then reclassified to the Anti-Drug Special Fund Account 7003.

  5. Monies not disbursed to state and local law enforcement agencies will be reclassified back into the revenue receipt or deposit fund account.

  6. Exam will monitor and control these cases. By memo, they will notify Accounting of amounts to be reclassified in or out of this special fund account.

  7. Exam will prepare and validate F3753 for reimbursement of claims to state and local law enforcement agencies.

  8. This account records disbursements to state and local law enforcement agencies for expense reimbursement claims. State and local law enforcement agencies are eligible for reimbursement of expenses for information they provide, if it substantially contributes to the recovery of federal taxes of $50,000 or more from illegal drug or related money laundering activities.

  9. All refund documents related to this fund must have the correct TAS.

  10. Individual records are maintained in the data base. This account is reported on the SF 224.

  11. Copies of the documentation supporting these disbursements will be held in campus GAO file, in accordance with SC Disposition Schedule 206.

3.17.63.16.4  (10-01-2004)
Account 7004 Informant Reward Receipt/Disbursement (Real Account, DR/CR Normal Balance) (TAS 20X5433.1 for receipts and TAS 20X5433 for disbursements) (Ogden Only)

  1. Public Law 104–168 authorized the payment of informant claim rewards to individuals whose information results in the detection of underpayment and fraud.

  2. This account will be used for both receipts and disbursements.

  3. This account is used to reclassify the claim amount from revenue receipts to the special fund, and also to record disbursements for informant rewards.

  4. Individual records are maintained in the data base.

3.17.63.16.5  (01-01-2007)
Accounts 7005–7008 (Ogden Only)

  1. These accounts are both receipt and disbursement accounts used for the federal withholding taxes of military and federal service employees who receive U.S. Government compensation for services performed in the U.S. territories.

3.17.63.16.6  (01-01-2007)
Account 7005 Cover over Receipts/Disbursements-NMI (Real Account, DR/CR Normal Balance) (TAS 20X6737) (Ogden Only)

  1. This account is for both receipts and disbursements.

  2. The receipts represent money collected in tax payments from U.S. military and federal service employees working in the territory of the Northern Mariana Islands, and disbursements of federal withholding taxes, according to the U.S. Treaty with the Northern Mariana Islands.

  3. No external subsidiary record. The account is maintained on a fiscal year basis.

3.17.63.16.7  (01-01-2007)
Account 7006 Cover over Receipts/Disbursements-VI (Real Account, DR/CR Normal Balance) (TAS 6738) (Austin and Ogden Only)

  1. This account is for both receipts and disbursements.

  2. The receipts represent money collected in tax payments from U.S. military and federal service employees working in the territory of the Virgin Islands, and disbursements of federal withholding taxes, according to the U.S. Treaty with the Virgin Islands.

  3. No external subsidiary record. The account is maintained on a fiscal year basis.

3.17.63.16.8  (01-01-2007)
Account 7007 Cover over Receipts/Disbursement-Guam (Real Account, DR/CR Normal Balance) (TAS 20X6740) (Ogden Only)

  1. This account is for both receipts and disbursements.

  2. The disbursement side has been established for future use.

  3. The receipts represent money collected in tax payments from U.S. military and federal service employees working in the territory of Guam, and disbursements of federal withholding taxes, according to the U.S. Treaty with Guam.

  4. No external subsidiary record. The account is maintained on a fiscal year basis.

3.17.63.16.9  (01-01-2007)
Account 7008 Cover over Receipts/Disbursement-Samoa (Real Account, DR/CR Normal Balance) (TAS 20X6741) (Ogden Only)

  1. This account is for both receipts and disbursements.

  2. The receipts represent money collected in tax payments from U.S. military and federal service employees working in the territory of Samoa, and disbursements of federal withholding taxes, according to the U.S. Treaty with Samoa.

  3. No external subsidiary. The account is maintained on a fiscal year basis.

3.17.63.16.10  (10-01-2004)
Account 7009 Insolvency (Real Account, DR Normal Balance) (TAS 20F3820)

  1. This account will represent those amounts that have been received from trustees on a deposit ticket, but not yet reported as classified by IRS.

  2. The AORR will be used to classify these receipts to the appropriate tax classes.

3.17.63.16.11  (10-01-2004)
Account 7100 Property Acquired in Payment of Taxes (Real Account, DR Normal Balance) (Ogden Only)

  1. This debit balance asset account is used to record the acquisition value (bid-in price or established value) of all real and personal property, to which title has been acquired by the U.S.Government after seizure or other action in settlement of unpaid taxes. The balance in this account represents the total value of such property in the custody of IRS which has not been sold, redeemed, disposed of otherwise, lost or stolen, or forfeited due to a prior lien holder.

  2. This asset account is supported by subsidiary records identifying each piece of property acquired, its bid-in price or value when acquired, the taxpayer concerned, other information pertinent to the acquisition, and final disposition of the property.

  3. Individual records will be maintained in the data base.

3.17.63.16.12  (10-01-2004)
Account 7200 Unclassified FTDs (Real Account, DR Normal Balance)

  1. This asset account was used to consolidate Accounts 7210 and 7220, but it is no longer in use.

3.17.63.16.13  (10-01-2004)
Account 7210 Confirmed Unclassified Amounts (Real Account, DR Normal Balance)
(TAS 20F3820) (Austin, Cincinnati, Kansas City, and Ogden Only)

  1. This asset account will record those unclassified amounts for which a DT or DV has been prepared and introduced into processing.

  2. Data input will be updated by electronic transmission.

3.17.63.16.14  (10-01-2004)
Account 7220 Unconfirmed Unclassified Amounts (Real Account, DR Normal Balance)
(TAS 20F3820) (Austin, Cincinnati, Kansas City, and Ogden Only)

  1. This asset account will represent those amounts that have been received on F2284, and not yet reported as classified by IRS or confirmed by the FRB.

3.17.63.16.15  (10-01-2004)
Account 7300 Unconfirmed Debits(Real Account, DR Normal Balance) (TAS 20X6879.09) (Austin, Cincinnati, Kansas City, and Ogden Only)

  1. This asset account is used to record and control unconfirmed debit vouchers. Debit vouchers prepared to adjust an erroneous verification card, or to delete an invalid verification card, will be journalized as a debit to this account upon preparation. The account will be credited upon receipt of the confirmed copy of the debit voucher. Only those SFs 5515 marked ADJ, and used to adjust a deposit ticket amount due to an error in a verification card or a misstated amount, will be placed in this account. Duplicate or invalid verification cards will be considered an erroneous card.

  2. The external subsidiary is the paper file of unconfirmed SFs 5515.

  3. The balance in this account is reported on SF 224 under this TAS.

3.17.63.16.16  (10-01-2004)
Account 7500 Undeposited Collections (Real Account, DR Normal Balance) (TAS 20–0110)

  1. This asset account is used to record any receipt on hand placed under accounting control, but not yet deposited. Monies are applied to this TAS, and later reclassified to the appropriate tax class.

  2. As a rule, all receipts are balanced with collection documents entered on deposit tickets, and recorded daily in receipt accounts. Only in unusual circumstances should Account 7500 be used to record undeposited receipts (e.g., a transfer of campus directors, an internal audit, or TIGTA examination).

  3. Entry to Account 7500 is via DBA window only.

3.17.63.16.17  (10-01-2006)
Loss and Shortages

  1. The following are the three Losses and Shortages accounts:

    • Account 7610—Embezzlement, Thefts and Negligence

    • Account 7620—Unexplained Losses

    • Account 7650—Deposit Discrepancies

  2. These accounts are supported by individual records in the Losses and Shortages file within IRACS. Each individual record requires its own Doc-id. This will ordinarily be the deposit ticket number. If one is not available, use the control number log to assign a number to the document. This number will be entered as DT/DV number. Unless known to be otherwise, tax class will always be 2.

  3. Source documents related to losses and shortages are:

    • F3244

    • Memoranda granting relief for losses or shortages other than by payment

    • Memoranda or letters stating losses or shortages

    • F2424

    • F813

  4. Entries are made from individual documents and F813. If entry is a credit, input must have a new Doc-id. If entry is debit, input must have Doc-id of individual loss or shortage already in the LSF. If there are any problems with the Doc-id, request journal research. Reclassify, if necessary. Transcribe or stamp journal identification number on all related documents.

3.17.63.16.18  (10-01-2004)
Account 7610 Embezzlement and Thefts (Real Account, DR Normal Balance)

  1. This asset account is used to record cash shortages of collections, losses from robbery or theft, embezzlement of collections, and counterfeit bills. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation as detailed in IRM 3.0.167. This account is included in the accountability of the accountable officer.

  3. All monies applied to this account will no longer be reflected on the SF 224 under TAS 20–0110.

3.17.63.16.19  (10-01-2005)
Account 7620 Unexplained Losses (Real Account, DR Normal Balance)

  1. This asset account is used to record unexplained losses. An unexplained loss includes deposit discrepancies that cannot be collected under the Federal Claims Collection Act. When the Service cannot establish the bank's liability for a deposit discrepancy, the loss is considered unexplained. Unexplained losses of $10,000 or more require Treasury's approval. For additional information on unexplained losses refer to IRM 3.0.167.

  2. This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation, as detailed in IRM 3.0.167. This account is included in the accountability of the accountable officer.

  3. All monies applied to this account will no longer be reflected on the SF 224 under TAS 20–0110.

3.17.63.16.20  (10-01-2004)
Account 7650 Deposit Discrepancies (Real Account, DR Normal Balance)

  1. This asset account is used to record amounts of deposit discrepancies which are discovered by the depositories. This account may also be used when the Payment Tracer function has unresolved encoding errors, where extensive research has been completed, and the credit cannot be located. These items are considered true deposit shortages for accountability purposes. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

  2. Account 7650 is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files will include complete documentation, as detailed in IRM 3.0.167. This account is included in the accountability of the accountable officer.

  3. All monies applied to this account will no longer be reflected on the SF 224 under TAS 20–0110.

3.17.63.17  (10-01-2004)
Account Series 8000 Work in Process Control Accounts

  1. This account series provides contra accounts in the Chart of Accounts for accounting control of various transactions in process. Summary report information accounts may be included.

3.17.63.17.1  (10-01-2004)
Account 8100 FTDs Input (Nominal Account, DR Normal Balance) (Austin, Cincinnati, Kansas City, and Ogden Only)

  1. This work-in-process control account records the input of transmittals of FTDs. These FTD transmittals are reflected on the SCCF Posting Summary, FTD-61–42.

  2. This account provides a contra for the liability Account 4300 when FTDs are input.

3.17.63.17.2  (10-01-2004)
Account 8200 FTD Deposits Confirmed (Nominal Account, CR Normal Balance) (Austin, Cincinnati, Kansas City, and Ogden Only)

  1. This work-in-process control account records the confirmation of the deposit of FTD monies by the FRBs. Confirmation of DT/DVs are included in this account.

  2. This account provides a contra for the liability Account 4960 when adjustment deposits are confirmed, for the asset Account 7300 when adjustment debit vouchers are confirmed, and for the asset Account 7210 when the original deposit ticket and regular/reversal DT/DVs for FTDs are input on date of confirmation.

3.17.63.18  (10-01-2004)
Account Series 9000 Ledger Closing

  1. This series of accounts provides an account for closing all nominal accounts at the end of the fiscal year. Also included in the series is an account to allow for the reopening of certain nominal account items which have been closed in prior fiscal years.

3.17.63.18.1  (10-01-2004)
Account 9998 Reversals Revenue Clearance Accountability (Nominal Account, DR/CR Normal Balance)

  1. This closing account is used to control items of excess collections, miscellaneous revenue collections, write-offs, and other nominal account items, when it becomes necessary to reopen one of these items after it has been cleared at the close of a fiscal year.

  2. Prior fiscal year (non-statute expired) excess collection credits may be applied directly from this account to the account indicated on the XSF 03 Register.

3.17.63.18.2  (10-01-2004)
Account 9999 Revenue Clearance Accountability (Real Account, DR/CR Normal Balance)

  1. This closing account is used only at the end of the fiscal-year accounting period to close the nominal accounts. All nominal accounts in debit-balance status at the close of the fiscal year will be closed by credit to that account and debit to this account. All nominal accounts in credit-balance status at the close of the fiscal year will be closed by debit to that account and credit to this account.

  2. Data input is updated by electronic transmission.

3.17.63.19  (10-01-2004)
Disaster Recovery Contingency Plan

  1. Determine length of time to recover the IRACS system. Notify appropriate operation manager of the situation and estimated time to recovery. Maintain open communications with the computer room, management staff, and all affected areas, as appropriate. The disabled site will contact area offices to advise where assessments should be processed.

3.17.63.19.1  (10-01-2005)
Short Term Strategy

  1. If at the end of month IRACS is unavailable, and a SF 224 needs to be pulled, contact NHQ immediately. NHQ has the capability to pull any of the sites' SFs 224 and fax it to the site.

  2. If IRACS is unavailable, prepare the following documents using an area LAN PC. If the LAN is unavailable prepare a manual document.

    • FTD wire

    • F8166s for all accounting packages and assessments

    • F23C for daily/weekly assessments

  3. Once IRACS is available

    • Input FTD information (oldest day batch first), review wire, and compare to manually-prepared wire. If all data matches, post the wire. Go on to next day batch, and continue until all days have been entered.

    • Input information from F8166s.

    • Input F23C information. If the manual F23C contained an error, make corrections, and stamp journal number on F8166 and/or the NMF assessment recap.

  4. If the system comes up within 24 hours, the IRACS DBA will:

    • Determine the extent of the problem.

    • Identify any partial transactions and take the necessary steps to recover them.

    • Run EOD and compare to first DTRIAL to ensure that the data base is in balance. If all accounts are in balance, proceed with processing.

    • If there is an imbalance, isolate and correct the error and proceed with processing.

    • If the error cannot be found, have the tape from the last good ENDDAY reloaded.

    • Run a DTRIAL and compare to the previous day's DTRIAL to ensure correctness.

    • If you have a good DPRLIST from EOD, the work can be input in the same order as it was input earlier and the audit trail is retained. If a partial shutdown occurs during ENDDAY, each of the reports can be pulled separately, and a determination can be made where the shutdown occurred. Call NHQ for guidance from a computer program analyst.

3.17.63.19.2  (10-01-2004)
Long Term Strategy

  1. For critical situations where downtime is more than 10 days, procedures in the IRACS Disaster Recovery Plan would need to be implemented. If downtime is more than one week, but does not involve month-end processing, make a decision regarding the location for processing the work. The cost of sending the work and/or employees to another site must be weighed against the cost of paying overtime to input work that has been held during downtime. If it is determined that the recovery will involve an alternate processing site:

    • Contact NHQ CFO office

    • Contact NHQ IT

    • Arrange for the team to travel to alternate site

    • NHQ IT will activate alternate site

    • Set accounting period

    • Set assessment date

    • Ensure correctness of campus director

    • Report status to operation manager

    • Monitor end-user problems during recovery

    • Approve final restoration of primary facilities

    • Coordinate the move from alternate sites, and the resumption of normal operations.

  2. Prepare all work at the disabled site and ship to the alternate site for input. Determine the number of employees to travel to the alternate site to input the work from the disabled site to IRACS from F8166 or original documents. Exercise extreme caution to ensure that all input information is uniform. A DBA must be present at all times that technicians are using the system, and a systems administrator must be available when the system is up.

  3. If downtime occurs over a month-end, it will be necessary to relocate the processing of work. Month-end processing cannot be delayed due to FMS reporting requirements.

  4. If the decision is made to continue processing at an alternate location, arrange for additional personnel at the alternate site. NHQ personnel may be required for oversight to ensure the integrity of the data base is maintained.

3.17.63.20  (10-01-2005)
Assessments

  1. Delegation Order 29 gives the campus director authority to appoint one or more assessment officers. This appointment should not be given to a position lower than an operation manager. An operation manager may, by designation, appoint an assessment officer to sign the Summary Record of Assessment in the absence of the operation manager. The F23C must be certified (signed) on the assessment date.

  2. Assessments related to MF and CADE accounts are based on taxable returns, not on payments and unpaid balances. The adjusted gross tax liability for each return, and any additional assessments, are processed by the site for debit entry to the taxpayer's MF account. All payments or equivalent credits are processed for credit entry to the MF account. In conjunction with entries to the MF accounts, a SC Recap is produced, and used as the basis for input to IRACS. A Summary Record of Assessment is produced using the procedures in IRM 3.17.63.2.4.9.

  3. Assessments related to NMF accounts are based on unpaid balances and payments. Each additional assessment appears on a separate NMF account. Assessments relative to NMF accounts are based on unpaid balances. It is important, therefore, that all NMF overpaid (refund), even, and non-taxable returns be included in the block DLNs in the audit trail area of the Summary of Assessments. This action will establish a statute date.

  4. Monday is the regular established assessment date for all MF assessments. In addition, a daily Summary Record of Assessments for Manual Assessments may be prepared. Summary Records of Assessments for Monday consists of the following certificates:

    • Regular Assessments - SC Recaps IMF, BMF, and NMF regular weekly assessments

    • Daily Assessments - Prompt, Quick or Jeopardy, and CADE

3.17.63.20.1  (10-01-2004)
After Hours Assessments

  1. Each site must establish procedures for after hours assessments. After hours assessments include such items as imminent statutes, jeopardies, and terminations that cannot be legally assessed during regular hours of the following work day. At a minimum, these procedures should include, but are not limited to, the following:

    1. Appoint after hours assessment officers. Ensure that there is an assessment officer available at all times.

    2. Ensure appointments are current for after hours assessment officers.

    3. Ensure that after hours assessment officers are adequately trained to prepare a manual F23C.

    4. Provide all necessary forms and instructions for preparing a F23C.

    5. Have a system in place to ensure that F23C is given to IRACS for journalization on the next business day.

    6. Provide field office personnel with a list of after hours assessment officers. Ensure that the field office personnel have correct phone numbers for these assessment officers. Ensure that they are aware of the procedures to contact the site in their jurisdiction.

3.17.63.20.1.1  (10-01-2004)
Manual Assessments

  1. Assessment information will come from the back of F813 (2-part) for pre-journalized documents, or NMF recap for post-journalized documents. Each F813 (2-part) will be a separate input document. It is essential that all necessary information for input be on, or associated with, the F813 (2-part).

  2. Manual assessments will be processed in accordance with IRM 3.17.46 and IRM 3.17.243.

3.17.63.20.2  (10-01-2004)
NMF Abatements and Credits

  1. Receive scheduled F2188 with related F1331 and F1331-B. If credit from an NMF abatement is being transferred to a MF account, also receive F2424 or F3809.

  2. Entries are made from F2188 which will debit Account 6510, Over Assessments Credited, and credit Account 4440, Assessment and Abatement Suspense.

3.17.63.20.2.1  (10-01-2004)
Voucher and Schedule of Overpayment and Overassessments

  1. F2188 (IRACS Report 024) is generated, or manually prepared, from IMF and BMF recaps. See IRMs 3.17.46 and 3.17.79 for NMF preparation and use of F2188.

  2. F843 will be received from Adjustments for abatement and refund of excise taxes. F2188 should be prepared for the abatement (credit). SF 1166 should be prepared for the refund (debit). Accounting prepares these two forms. Journalizing will be done through the Disbursement Control menu. Debit Account 6520, Refund of Tax and Interest-NMF, and credit Account 48XX, Approved Vouchers Payable.

  3. F2188 requires the signature of an authorized certifying officer.

3.17.63.20.2.2  (10-01-2004)
Reversal of Erroneous Abatement

  1. When it has been determined that an account has been erroneously abated and the period for correcting it on IDRS has expired, the case is routed to the Statute function for controlling and monitoring purposes. Accounting will receive a request for the reversal of an erroneous abatement from Statute. See IRM 25.6 and IRM 3.17.46 for additional information on processing by Statute and NMF.

3.17.63.21  (10-01-2004)
Deposits

  1. Revenue Receipts—Collection of taxes, penalties, interest, and costs assessed or assessable against taxpayers, and payments on accepted OICs, are classified as revenue receipts. Amounts received as payment of court fines, court costs, forfeitures, penalties incident to, or imposed for, violation of applicable laws from the redemption of property acquired by the government, and receipts from consummated sales of acquired property, will also be classified for deposit as revenue receipts.

  2. Deposit Fund Receipts—Collections normally deposited as deposit fund receipts include amounts tendered as OICs, offers of prospective bidders or payments for the sale of seized property, and offers to bid or initial payments, under a deferred payment sale of acquired property. Other payments may be deposited to this account when required by specific instructions.

  3. General Fund Receipts—Amounts collected for fees for duplication of documents, conscience fund, user fees, and public debt will be deposited as general fund receipts to be administered by the responsible agencies.

  4. Repayments to Refund Appropriations—Amounts recovered from erroneous, duplicate, or overpaid refund disbursements, or recoveries of fraudulently negotiated refund checks, are classified as repayments to refund appropriations.

3.17.63.21.1  (01-01-2008)
Custodial Detail Data Base (CDDB)

  1. CDDB is an enhancement to the Financial Management Information System created to track all individual payments that comprise a deposit ticket, and balance the individual transactions against the deposit ticket totals which have been entered in the IRACS general ledger.

  2. The tracking mechanism is the creation of a Trace ID number to identify each deposit ticket and its corresponding payments.

  3. As of January 2008, all input payment systems will automatically assign a Trace ID to each deposit ticket.

  4. Manual deposits (deposits that are not processed by an automated system, such as insolvency payments, or automated OIC payments), that require F813, will be assigned a Trace ID using Batch Block Tracking System (BBTS). BBTS will create both a 14-character Trace ID (to be transcribed on the deposit ticket and entered into IRACS) and a 20-character Trace ID for the individual payments that will be processed for posting to MF.

  5. SITLP payments will have the Trace ID generated by the SITLP program TDA55. The Trace ID will print on the accounting reports, and Accounting will use it to transcribe on the DT.

  6. IRACS will assign a Trace ID through BBTS for debit vouchers (dishonored checks) to be input into IRACS (System ID 20), and then forwarded to DCF to be entered into the DCF data base.

  7. Accounting DT/DVs (example: Overstated or Understated Deposits) For the deposit ticket, IRACS will need to use BBTS to get the Trace ID assigned (System ID 25). BBTS will provide the ability to request only a Trace ID without a F813 listing, through a screen query for only the Trace ID Number.For debit vouchers use the original Trace ID Number from the original deposit ticket.

3.17.63.21.2  (01-01-2008)
TRACE ID NUMBER FORMAT

  1. Trace IDs on DT/DVs consist of 14 characters. Below is the Trace ID number format:

    Note:

    It is mandatory that every DT/DV have a Trace ID and that it contain the 14 characters as described below.

    Note:

    Presently, IRACS will only be assigning System ID 20 and 25, as explained above in IRM 3.17.63.21.1(6) and (7).

    Description Number of Characters Detail value
    Site ID nn SP Site FLC or other SIte ID (Area Office)
    System ID nn The values are identified as follows:
        01– EFTPS
        02– ISRP Payment Transactions
        05– Lockbox Bank Transactions
        10– SITLP Levy Payments
        15– Receipt & Control Manual Deposits
        20– IRACS DCF Debit Voucher (DV)
        25– Accounting Deposit Ticket and DV
        30– FTD Deposit Ticket/Debit Voucher
        35– IDRS IA User Fee Sweep
        40– Automated Insolvency Manual DT
        45– Automated Offer In Compromise Manual DT
    Deposit Date YYYYDDD Julian Date
    Seq Number nnn For each Deposit Date, begin with 001 and increment each additional Deposit by 1

3.17.63.21.3  (10-01-2004)
Remittances

  1. Remittances received by the district office or foreign operation district (FOD) for application to taxpayer accounts are deposited to the credit of the campus director. Remittances are also received at the site. The related returns or documents are controlled by:

    • SF 215-A

    • F813 (2-part)

    • F813A

    • Remittance Processing System Transaction Registers

  2. Accounting receives the original posting documents from the field office or FOD, with a copy of the deposit ticket . The accounting package must be immediately routed to Deposit for numbering and preparation of the F813 (2-part) and F813A. Deposit will return the control documents to Accounting for journalization. The confirmed copy of the deposit ticket is received from the depository.

  3. The site prepares separate deposit tickets for its own deposits. These documents are used as the basis for journalization and subsequent posting to the general ledger controls. Remittances received by area offices and FODs are processed and deposited to the credit of the campus director, as prescribed. Dishonored checks on above remittances are received at the site with SF 5515. For detailed information, see IRM 3.17.10.

3.17.63.21.3.1  (10-01-2004)
Advance Payments and Cash Bonds

  1. Processing payments or cash bonds, prior to the processing of the related returns or Exam documents, will result in advance credits in the MF accounts. Such credits will be held in the accounts, appropriately coded as to the purpose, until the related debit assessment posting is made. These payments post to taxpayer accounts as TC 640. The cash bonds are further identified with blocking series 990–999. In some cases, an assessment is made in the amount of the advanced payment before the related return or document is processed.

  2. Identification of cash bonds which were erroneously numbered and posted as advance payments require manual correction. Refer to IRM 3.17.243 for correction procedures.

3.17.63.21.3.2  (10-01-2006)
Disposition of Requests for Claims from State Treasury Departments (Unclaimed Funds)

  1. Unclaimed or abandoned assets or funds are monies held by financial institutions, state or local governments, corporations, or other entities that were undeliverable to the intended person or agency.

  2. Unclaimed assets payable to the IRS are held by states, banks, or other financial institutions. Generally these are money orders, traveler's checks, and certified checks, made payable to IRS, that have not been negotiated. These are held in an account by the issuer. After a period of time, generally five or more years, states require the financial institution to turn the assets over to them. The state remains in control of the assets until claimed by the originator or passed on to the payee.

  3. Any communication received from a state department of treasury that references unclaimed funds to which IRS may be entitled should be forwarded to:

    • Department of the Treasury

    • Office of Accounting and Internal Control

    • 1500 Pennsylvania Ave NW

    • Metropolitan Square Room 6259

    • Washington, DC 20220

3.17.63.21.3.3  (10-01-2006)
Insolvency (OSC Only)

  1. Payments received are deposited via Paper Check Conversion (PCC) using the Electronic Verification and Image Services (ELVIS). The checks are scanned on ELVIS, and electronically transmitted to the FRB for deposit.

  2. Philadelphia (Campus Support) will:

    1. Daily scan received checks into the PCC computer (info will be transmitted to FRB at the end of the day). These payments will be run on Ogden's ALN and included in their deposit.

    2. The next day fax to Ogden F784 with the Doc-id noted to (801) 620-6198/6856.

  3. Ogden (Accounting) will:

    1. Daily, Insolvency technician will access ELVIS and retrieve all electronic deposit tickets associated with payments input by Philadelphia.

    2. The technician will print 2 copies of the deposit ticket and all checks for that deposit.

    3. Accounting technician will journal the deposit ticket to IRACS using window 210, debit Account 7009 and credit Account 4625.

  4. Debit side - Deposit (Apply)(Add)

    1. Input deposit ticket number in Treasury field

    2. Input deposit date (settlement date from the ticket)

    3. Source code must be IDRS (add)

    4. Debit Account 7009

  5. Credit side - (scroll down to Insolvency (highlight)(add)

    1. Input Doc-id number in document number field

    2. Input deposit ticket date

    3. Input '4625 INSOL' in deposit ticket number field

    4. Credit Account 4625

    5. Check summary

    6. Post to generate 210 journal number

  6. Final steps:

    1. Write or stamp journal number on deposit ticket and its copy.

    2. Place the original deposit ticket in bin for CASHLINK technician.

    3. Print 2 copies of the debit voucher.

    4. Retrieve a copy of the dishonored check (using ICRA feature on ELVIS, query the unique ID from the debit voucher)

    5. Journalize the debit voucher to IRACS

    6. Fax a copy of the debit voucher, detail report, and dishonored check to the CIO at Philadelphia.

  7. The AORR report generated daily reflects the F3244 information input via command code PAYMT. Perform the normal balancing routine by comparing the amounts on the deposit ticket, AORR report, and checks to ensure the amounts match. NOTE: The amount of the AORR should equal the deposit ticket(s), as there should not be any additional types of area office deposits/payments input at the Philadelphia campus.

  8. AORR EOD1640 NOTE: If the AORR has more than one Doc-id, note each Doc-id and the amount to be journalized from each number.

    1. PSC will fax F3210 with all check(s) input through CC PAYMT. The Doc-id will be listed on both forms for Insolvency technicians to balance.

    2. Debit Account 4625 - Insolvency numbers imprinted on the checks-money (use amount of checks from AORR associated with each Doc-id)

    3. Credit MF Accounts 4120 and/or 4220 found on EOD16 run, page 6, and tax class tape totals from F813-A. (NMF items will need to be transferred to Cincinnati.)

    4. Reclass using same 498 journal - Input money amount to 7009 then use F813-A to debit the tax class.

  9. Use 498 Recover Insolvency window (accounting application; recover insolvency)

    1. Use insolvency number as input into the Doc-id number field

    2. Prepare date is the date of AORR (add)

    3. Debit Account 4625 (if more then 1 Doc-id, click okay and input next Doc-id, date of AORR, and money amount for that id)

    4. Credit, in RS field- the insolvency number input on the debit side should systemically generate (add) Credit 4120 and/or 4220, as appropriate

    5. Reclass Account 7009 and tax class (use F813-A for appropriate tax class). NMF items should be transferred to Cincinnati.

  10. Final steps:

    1. Write or stamp journal number on AORR

    2. Insolvency unit will pull AORR from Control D

    3. Original AORR to Data Control

    4. Copy of AORR to Insolvency technician

    5. Maintain AORR folder in Accounting

  11. Insolvency checks are received in the Philadelphia Campus Support function. These checks will be deposited via PCC. The deposit ticket will be obtained via ELVIS the following morning by the Ogden Accounting function.

  12. Each deposit will have a unique Doc-id:

    1. The Doc-id is created by using the following format JJJ4625DDDDDDY where

    2. JJJ = Julian date

    3. 4625 = account for insolvency

    4. DDDDDD = deposit ticket number

    5. Y = list year

  13. Maintaining suspense account

    1. Using the supporting backup, input the deposit ticket and check information onto the Excel Insolvency suspense spreadsheet. Input the Julian date, DT number, and DT date. List each check separately under the deposits column on the spreadsheet. The spreadsheet currently allows for a maximum of 7 checks. Input the journal number of the DT (210 journal number).

    2. File tickets in date order in folder.

    3. The Insolvency function will prepare the substitute F3244 used to apply the payments to the taxpayers' accounts via CC PAYMT. The Campus Support team will be responsible for inputting the information via CMODE/PAYMT, using the F3244s. This information will be reflected in the AORR. The information will be balanced back to the documents and checks, and journalized by the IRACS unit. This will be journalized as a debit to Account 4625.

    4. When all checks have been applied using an AORR run, note 'Closed' on the spreadsheet.

    5. Initiate follow-up with Campus Support for any case that is not closed within 5 days.

  14. Each Monday morning, email the Insolvency suspense spreadsheet, which includes all journals up to and including the prior Friday, to the Campus Support Team manager. Note: Each Friday the Insolvency Report (IRACS 0139) should be balanced back to the insolvency suspense spreadsheet, prior to emailing the report. The IRACS DBA will provide this report.

  15. Each month, a trial balance must be completed for the Insolvency Suspense Account 4625. This will ensure that all cases are closed out timely. Only open case files are reflected on trial balance. The net figure for Account 4625 will always be a credit or zero balance since all cases are opened as a credit to the account.

  16. Backup reports to support the trial balance will include:

    1. IRACS Report 004 - Monthly General Ledger Trial Balance showing the cum debit and credit figures for Account 4625, as well as the net amount remaining on the account.

    2. IRACS Report 0139 - Insolvency Suspense Report listing all cases for the current month ending stamped on the report. Note: This list includes all cases from the prior month that did not close until current month ending.

    3. Print the Insolvency Suspense Report that corresponds to the month being balanced.

  17. Complete the trial balance spreadsheet (showing debits without brackets and credits with brackets):

    1. Input the debit from IRACS Report 004 as a positive amount for IRACS 051 DR-AMT-CUM figure.

    2. Input the credit from the IRACS Report 004 as a negative amount for the IRACS 051 CR-AMT-CUM figure.

    3. Under the source document column, list the Doc-id for all open case files. Use the actual case files to determine which cases remain open. The spreadsheet can be used to confirm open cases, however, the actual case file (document) must be used to run the trial.

    4. In the column next to each Doc-id, list the remaining balance for each case file as a negative figure.

  18. When all open case files have been listed, the remaining balance should be zero. If there is an imbalance:

    1. Check the IRACS Report 0139 for 210 journals under the beginning balance column that may not have a case file, or

    2. Check the adjusted amount column for a 498 journals that may not have been used to close out a check on a particular case file.

    3. As a secondary check, mark each remaining balance on the insolvency suspense spreadsheet against the current balance on the IRACS Report 0139 to ensure they match.

  19. Forward the balanced Trial to management for approval and initialization. The original Trial and all backup should be forwarded to the F3997 technician in the IRACS unit. A copy of the trial with all backup should also be provided to the Data Control team 103. Maintain another copy of the Trial and backup documents in the front of the closed case file folders for that month.

3.17.63.21.3.3.1  (01-01-2007)
FBAR (Foreign Bank Account Records) Payments (TAS 20–3220) (Cincinnati Only)

  1. Payments are processed at ECC-DET via PCC to Cincinnati's ALC.

  2. These payments are considered to be miscellaneous receipts which are not reflected on the taxpayer's account.

  3. The money is recorded in Account 2320X400.

  4. When overpayments need to be refunded, ECC-DET will prepare a manual refund of the overpayments. The refund should be processed as a miscellaneous refund (window 501), principal money to Account 6400.

3.17.63.21.3.3.1.1  (10-01-2006)
Offer In Compromise (PCC) Payments(Brookhaven, Cincinnati, and Memphis Only)

  1. Payments for OIC received in the Brookhaven and Memphis are deposited via PCC using ELVIS.

  2. Daily, the Perfection/OIC teams in Brookhaven and Memphis will fax a copy of the PCC Deposit Breakdown Sheet and F13479s, for the current day deposit to IRACS in Cincinnati. Via overnight traceable mailsend the PCC/OIC package, which includes the batch listings, F13479, and the original F2515s to:

    IRS

    201 W Rivercenter Blvd

    Stop 21 IRACS Team 101

    Covington, Kentucky 41011

  3. Daily, Cincinnati's IRACS accounting technician must access ELVIS, and retrieve all electronic DT/DVs for the OIC payments from Brookhaven and Memphis.

  4. For the deposit tickets, the technician will:

    • Print a copy of the deposit ticket, and download the Deposit Ticket Report to a file.

    • Balance the PCC/OIC package to the deposit ticket .

    • Journalize deposit ticket to IRACS.

    • If monies are received for Account 4620, Unidentified Remittances, shown on F3244, prepare a F2158 to move the credit from Brookhaven or Memphis Account 4620 to Cincinnati for processing to the MF.

  5. For debit vouchers, the technician will:

    • Print a copy of the debit voucher and download the Debit Voucher Report to a file.

    • Retrieve a copy of the dishonored check (using the CIRA feature on ELVIS, query the 21-digit unique transaction ID from the debit voucher).

    • Journalize the debit voucher to IRACS.

3.17.63.21.3.4  (10-01-2004)
Collections Revenue Receipts—IDRS Accounting Package

  1. The IDRS accounting package contains SFs 215-A, IDRS Remittance Register, and IDRS Recap (AORR, EOD 16).

  2. Each SF 215-A will be input individually. The IRACS window validity checks will verify total amount to the sum of all tax class amounts. It is essential that the correct amount be placed in the proper tax class fields because these amounts are posted to the data base as revenue receipts.

  3. Any losses or shortages associated with the deposit tickets being input will have proper documentation.

  4. Entries to the SCCF suspense accounts will be made from the IDRS Recap (AORR, EOD 16).

  5. Deposit tickets and the IDRS Recap must be cross-referenced with the journal number for audit trail purposes.

3.17.63.21.3.5  (10-01-2004)
Regular Accounting Package and Cash Conversion

  1. The regular accounting package is received with the following documents:

    • SF 215-A

    • F813 (duplicate for MF and original or third copy for NMF)

    • Forms 813-A

    • F3460

    • NMF Subsequent Payments with duplicate F813

  2. Each Form 215A will be input individually. The IRACS window validity checks will verify total amount to the sum of all tax class amounts. It is essential that the correct amounts be journalized in the proper tax class fields because these amounts are posted to the data base as revenue receipts. In accordance with the Treasury fiscal requirements, if it is found that the detail of amount by tax class has been omitted, or is more or less than the total thereof, on the original deposit tickets released to the depository, the depositing office is authorized to change the office copies in pen and ink to include the error amount on line 2 as individual income tax-other. The reclassification window will be used to reclassify the discrepancy amount to the correct tax class. The total amount and the date on the DT/DV must never be changed. EXCEPTION: On the ISRP deposit ticket, certain conditions may necessitate a date change. With ISRP processing, the deposit ticket is generated with the current date. During peak, processing is also done on weekends, but deposits are not made until the following regular business day (Monday). The bank will not accept a deposit with a previous day's date. Whenever this occurs, the date must be changed on all copies of the deposit ticket before the deposit is released to any area.

  3. Losses and shortages related to deposits will be documented and input with the related deposit ticket.

  4. The deposit tickets and F813 must be cross-referenced with the journal number, as applicable.

3.17.63.21.3.6  (10-01-2004)
Accounting Package From Electronic Fund Transfer (EFT) System Deposits

  1. The EFT accounting package is received with the SF 215-C, and the appropriate backup, according to the EFT payment type.

  2. Each SF 215-C will be input individually. Amounts will be input as total amount and tax class amount. Tax class amounts will be determined by the EFT message reflected on the Treasury Financial Communication System support listing.

3.17.63.21.3.7  (10-01-2005)
ISRP Accounting Package

  1. The following documents are included in the ISRP accounting package:

    • SF 215-A

    • IMF and BMF SCCF Listings

    • ISRP Remittance Register

    • ISRP General Ledger Account Number List for each deposit ticket

  2. Normal balancing procedures will be performed prior to input. Entries will be made from deposit ticket. Care should be taken to ensure that the tax class amounts are entered for the selected tax class. Entries of SCCF items and amounts will be made from the ISRP General Ledger List.

3.17.63.21.3.8  (10-01-2004)
ISRP Deposit

  1. Receive one or more computer-generated deposit tickets, and related recap reports, for inputting receipt information.

  2. Verify deposit ticket totals using the ISRP 0542. The MF report combined with the NMF report tax classes must equal the deposit ticket tax classes 1 thru 8.

  3. TAS 20X0000 on the deposit ticket represents a summary of all deposit fund, general fund and repayment items. Verify 20X0000 using the ISRP General Fund, Deposit Fund and the Refund Repayment Reports. ISRP 0542 is all summary totals on a single report.


More Internal Revenue Manual