part3-8

The following IRMs are frequently used in conjunction with this IRM:

In accordance with the General Accountability Offices (GAO) accounting principles and standards, Headquarters requires accountable
officers to render complete accounting documentation covering the full extent of their financial accountability, as of the
close of business of the last day as the accountable officer for their jurisdiction. Refer to IRM 3.0.273, Administrative
Reference Guide, for additional information.

Under 31 U.S.C. 3512(b) the head of each agency is responsible for establishing and maintaining adequate systems of accounting
and internal control. The Submission Processing Campus (SPC) Director is normally the Accountable Officer of the SPC Accounting
System. All personnel in the organization, however, play an important role in making internal control work. See Standards for Internal Control in the Federal Government. GAO-AIMD-00-21.3.1, Nov. 1999 (the Green Book).

Deposit Tickets (DTs) are prepared by SPCs, Area Offices/Territory Offices, Post of Duty Offices and the Treasury Financial
Communications System (TFCS) under the agency location code of the SPC. Therefore, SPC Directors are accountable officers
for all tax collections received within their accounting jurisdiction, including losses and shortages of these collections.
SPC Directors are also accountable for Federal Tax Deposits (FTDs) and Treasury Bond Deposit Tickets (DTs) as well as Debit
Vouchers (DVs) even though their individual names do not appear on such documents.

The FTD Unit must contact The Federal Reserve Bank (FRB) of St. Louis to obtain a list of confirmed DTs and DVs, by number,
tax class (optional), and amount not received by the SPC as of the transfer date.

The following forms are used throughout this IRM.

Over 50 reports are automatically generated or produced upon request through the FTD System. The frequency of the reports
can be daily, weekly, monthly, or on a variable basis. Listed below are all FTD run file numbers and titles. If the scanner
goes down and does not release a tape to the Computer Branch, two (2) small blocks (from Extracting) must be entered through
ISRP in order to produce daily FTD reports. Manually assign the FTD Sequence Numbers. The blocks must be filmed once the Scanner
is working. These blocks may BOB the following day. They should be monitored to ensure appropriate actions are taken. Notify
ECC MEM and ECC MTB to run FTD 37 before FTD 43 when this procedure is followed through ISRP.

The following terms are used throughout this IRM.

Depository banks send FTD coupons (Form 8109) directly to the SPC with a Form 2284, Advice of Credit (AOC). Depositaries forward
the AOC data electronically to the FRB. Banks requesting AOCs for the first time require prior authorization from the appropriate
FRB before the request can be processed by the IRS.

Form 8109 can be obtained automatically through AUTOGEN, (refer to IRM 3.5.17.3.2). Blank Forms 8109-B can be obtained from
Taxpayer Assistance Centers (walk-in sites), and the Area Office/Territory Office. Tax preparers can send a written request
on their letterhead to the Area Distribution Centers. In an extreme emergency the SPC Inter Agency Coordinator may supply
them.

When use of EFTPS is not required, FTD coupons (Form 8109 and Form 8109-B) may be used when making deposits on certain taxes.

The following tax returns require deposits to be made by either EFTPS or FTD coupons, when appropiate:

FTD preparation instructions, 24 FTD coupons and a FTD Address Change Form are bound together in booklet form and mailed to
the taxpayer. Each coupon will have printed entity information and a stub for recording the deposit information. For those
taxpayers who do not have the pre-printed FTD coupon when a deposit is due, Form 8109-B, over-the-counter coupons, are available
at most Area Offices/Territory Offices. All FTD coupons are optically serialized, imaged and scanned at AUSPC, CSPC, KCSPC,
& OSPC. Refer to IRM 3.41.268, FTD Processing on SCRIPS.

The IRS establishment of a new taxpayer entity, or entity update, will automatically generate a request for a coupon book.
Refer to IRM 3.13.2, BMF Account Numbers.

Refer to IRM 3.5.17.3.2 for information regarding the Automatic Generation of FTD Coupons (AUTOGEN) program. Some taxpayers
continue to reorder additional FTD coupon books by completing and sending to IRS an old FTD reorder request form. (Two is
the maximum number of coupon books the IRS will issue.) Taxpayers can call the IRS Forms National Distribution Center (1-800-829-2437),
or contact the Area Office/Territory Office in their geographic area to reorder coupon books.

Forward reorder requests to the Entity Control Unit or Accounts Management.

Reorder requests with an address change only will be sent to Entity Control Unit.

Reorder requests with a change to the first name line, and/or EIN (also may include address change), are forwarded to the
Entity Control Unit.

Reorder requests received without an EIN are forwarded to the Entity Control Unit to be processed in accordance with IRM 3.13.2,
BMF Account Numbers.

The FTD Database is used for verifying taxpayer entity information on FTD reorder requests as well as for validating EIN,
Name Control/Check Digit and Filing Requirements on FTDs processed through SCRIPS. All validation is performed after the coupons
are serialized, imaged and scanned. Entity information on the FTD Database is updated approximately one week following an
action on MasterFile.

An annual update of the FTD Database occurs in January. During this update, all BMF entities and their respective modules
are analyzed for a posted FTD transaction that occurred during the prior calendar year (Transaction Code 650/660, Document
Code 97).

This interface allows FTD entity data to be validated against taxpayer entity records on the Business MasterFile (BMF) when
the taxpayer entity record cannot be located on the FTD Database.

FTD coupon book orders for new entities and reorders are merged to create a FTD “Supplemental”
tape which will be forwarded to a private contractor daily. The private contractor prints, assembles and mails the coupon
books to the taxpayer and the FTD City-State-Zip Verification Report to the IRS. (See Figure 3.5.17-1). The FTD TAPE 82 reflects
changes made by the private contractors validity check on city, state, zip. This list should be provided to an area that
has input capabilities to IDRS via Command Code FTDRQ. If the taxpayer specifically requests a mailing address that differs
from the private contractors validity correction. Reference: IRM 2.4.18, Command Code FTDRQ.

Requested coupon books should be received by the taxpayer within 5 to 6 weeks of request input. If a taxpayer does not specifically
request one or two coupon books, the IRS will issue two coupon books on reorders and new entities.

A FTD Supplemental Error List will be produced to indicate invalid state and zip code combinations from IRS validity check
on FTD coupon book reorders. (See Figure 3.5.17-2). These records will be deleted from the tape sent to the vendor. Listing
should be provided to an area that has input capabilities to IDRS via Command Code FTDRQ.

Figure 3.5.17-1

Figure 3.5.17-2

Taxpayers will receive an FTD coupon booklet with 24 deposit coupons. The sixth and seventh FTD coupons contain Form ID Number
63 and 64 respectively. (See Figure 3.5.17-3). The special ID numbers will automatically trigger a reorder request from the
Business MasterFile (BMF) to the FTD Coupon vendor for the generation of one FTD Coupon Book to the taxpayer.

An “FTD ADDRESS CHANGE FORM”
is included in the FTD Coupon Book. (See Figure 3.5.17-4). The taxpayer is to complete the form and submit it to the SPC
when it requests to have the FTD Coupon Book sent to a different mailing address.

When the FTD Coupon with the special Form ID Number of 05, 06, 63, 64, 91 or 92 is processed, specific information will be
extracted from the coupon (EIN, Check Digit and FYM). This information will be formatted as a Transaction Code 016 (DLN Document
Code 97) and included in the daily EOD 29 tape sent to ECC MTB. The computer routine will automatically search the “FTD Mailing
Address”
section for an address. If no “FTD Mailing Address”
line is present, the routine will default to and use the BMF Address Line as the address information to place on the FTD
Coupon Book reorder tape.

When the 05, 06, 63, 64, 91 or 92 Transaction Code 016 posts to the taxpayers account at the MasterFile, an analysis routine
will occur. During this analysis, the computer will determine whether or not to generate an FTD reorder request based on the
FTD posting activity on the tax account. (In the event the FTD coupon with the Form ID Number 05, 63, or 91 is not submitted
to the IRS for processing, the FTD coupon with Form ID Number 06, 64 or 92 will still generate the FTD reorder request.)

The FTD system will suspend the issuance of the FTD coupon request (05, 06, 63, 64, 91 or 92) if the FTD coupon information
has generated onto the TAXPAYER ENTITY CHANGE REPORT or ERROR REGISTER. If this occurs, reorder using cc FTDRQ.

The FTD Database includes the “Date the FTD Coupon Book will be generated.”

Figure 3.5.17-3

Figure 3.5.17-4

SCRIPS utilizes the latest in high speed scanning and imaging technology. Documents are scanned, numbered, imaged, and sorted
through one pass on the Scanner. Once the paper documents are scanned, all remaining processing is performed from the captured
electronic data.

Documents that must be archived are stored on high-density optical disk drives. These drives provide redundancy and ensure
data integrity as well as reducing the retrieval time required for retrieving stored images.

The SPCs will receive the following FTD Bulkdata files from St. Louis FRB:

The SPCs will send the following FTD Bulkdata files to St. Louis FRB:

The Accounting FTD Unit will make the first attempt to resolve FTD cases with the commercial banks. If all attempts fail,
SPCs will direct questions to St. Louis FRB for resolution (even if the deposit was processed by another FRB).

Management will monitor the FRB SCCF on a daily basis to ensure that the FTD SCCF does not reflect aged items. Management
will contact Headquarters if modules are not cleared ninety (90) days after the FRB Batch or IRS Received Dates, whichever is first. In addition to monitoring the normal daily and monthly FTD
reports, the following FTD Transcript Request of the FTD SCCF must be requested and monitored for proper closure:

All actions related to adjustments, reversals, and replacement cards must be directed to the St. Louis FRB regardless of deposit
date, FRB batch date, or IRS receive date.

This menu item opens the User Information window. The top portion of the window displays a scrollable list of users. The bottom
portion displays the access privileges of the currently selected user.

Adding a new user to the database.

Deleting a user.

To modify a users access privilege, simply modify the current privileges and save.

To modify the users login, delete current users entry and add a new one.

Change passwords.

This option allows each SPC System Manager to set the range of numbers allowed for Deposit Tickets and Debit Voucher numbers.

Each SPC is assigned a range of numbers to be used during the Generating Voucher Process.

This option allows the system manager to modify the state information as necessary.

The information available in this option is the state code and names of the fifty states and the District of Columbia.

This option is used by the SPC to add or update FRB address information.

The information entered includes SPC Code, Agency Locator Code (ALC), name and address.

This data will be incorporated for use on the vouchers.

The Adjustment Reason Codes are used when working the Form 5526 adjustment.

Codes 1 to 99 indicate normal adjustments.

Code 100 indicates normal reversals.

Codes above 100 indicate some sort of special handling. All adjustments receiving these codes will generate separate vouchers.

Codes 0, 100, and 150 should never be changed or modified. These codes are reserved codes.

IPS00814—FTD Block Report. This report reflects the Transmittal Header, Deposit Date, Deposit Amount, Received Date, and FTD
Sequence Number.

IPS00815—Generated Tax Period/Quarters Report. A generated report reflecting FTDs that had tax periods and tax types not detected
by SCRIPS.

IPS00816—FTD THR Processed Report. A report reflecting Transmittal Headers which were Form Number 98s. The total number of
Replacement FTDs within those blocks and the total number of blank tax types and tax quarters within these blocks are also
shown.

IPS00817—FTD Insert/Delete Report. This report lists Transmittal Headers and FTDs which were inserted or deleted. Items with
asterisks indicate Out of Region Bank Numbers.

IPS00819—FTD Run Balancing Report. This report provides a paper trail for run to run balancing between SCRIPS and other computer
systems reflecting count of records by Headers, FTDs, and a total number of records.

IPS03179—FTD Sequence Number Assignment Report. This report shows beginning and ending Sequence Numbers, Missing/unused Sequence
Numbers, total voided Sequence Numbers and the reason Sequence Numbers were not used.

Daily volume of FTDs released from SCRIPS should be balanced daily. The following steps can be used to accomplish this daily
occurrence:

During SCRIPS processing, a listing, IPS00814 (FTD Block Report), is generated. The IPS00814 reflects the FTD Sequence Number,
type transmittal code, and record type ID code.

This report should be routed to the FTD Unit. The IPS00814 report should be maintained in the FTD Unit one month after the
end of the processing date, then destroyed.

Blocks appearing on the list should also be established on the Control Record List, FTD–61–45 (CRL).

When the need occurs the FTD Unit should review one percent of the TLNs on the IPS00814 report against the CRL. (See Figure
3.5.17-8). If a TLN is not located on the Control Record Listing (CRL), the FTD Unit should research the following items to
determine whether or not the batch has been processed:

If a block of work has not been processed, blocks should be identified, notated with the original IRS received date and reinput.

During SCRIPS processing, IPS00817, Inserts/Deletes Report will be generated to indicate items that are deleted by FTD Sequence
Number, TLN and EIN. This list will be utilized for research of missing items during BOB process. FTD Unit should perform
analysis of transmittal blocks on the list to ensure these items are re-scanned. When reinputting blocks, use the original
IRS received date if available, if not available, use the current date. (See Figure 3.5.17-9).

The IPS00815 listing is generated for all items that SCRIPS does not detect a type of tax and/or tax quarter. (See Figure
3.5.17-10). The listing should be sent to the FTD Unit on a daily basis.

Figure 3.5.17-8

Figure 3.5.17-9

Figure 3.5.17-10

The Adjustment Branch will send an 878C Letter to the commercial bank requesting FTD header information needed to locate missing
or misapplied deposits. The case and response to the 878C Letter will be forwarded to the Hardcore Payment Tracer Function
if:

The Interagency Coordinator (IAC) will coordinate with the bank in securing the information requested on the 878C Letter.

A telephone call should made to the commercial bank and/or to the TT&L National Customer Service Area (1-888-568-7343) of
the St. Louis FRB.

When the IAC is coordinating a payment tracer with Hardcore Payment Tracer Function, and the commercial bank has the information
or does not have a record of the taxpayers deposit, the information should be forwarded to the Payment Tracer Function for
resumption of tracing the deposit.

FTD 49-40 MICRO-List and FTD 49-41 ABA-List can be used to aid in the research of payment tracers.

The IAC should make a follow-up call if no response is received after ten (10) workdays of the initial telephone call. The
bank will be allowed fifteen (15) work days from the first telephone contact to provide a response. See IRM 3.5.17.9.5 for additional information regarding Communication Skills.

At the end of the 15 days, a final telephone call and/or letter should be made to the St. Louis FRB TT&L National Customer
Service Area.

The FTD Unit will act as a supporting role in obtaining information from the commercial banks and/or the FRB. The IAC may
be contacted by another SPC to assist in researching payment tracer cases.

It is recommended that the FTD Unit create a special file for FTD payment tracer items. This will aid in follow-up telephone
calls and/or letters that may be needed. The folder should contain the following items:

When the depository and/or FRB fails to respond within thirty (30) work days, follow procedures in IRM 3.5.17.24 and 25. Notify
the Payment Tracer Function that the case has been forwarded and send it a copy of the annotated history sheet.

Figure 3.5.17-11

Most bank related problems are identified in the FTD Unit area. However, other areas who are involved in processing FTDs should
join in gathering information about problem banks during normal daily operations. In order to avoid duplicate information,
each SPC should coordinate these efforts with all affected functions.

Bank related problems will be transmitted by way of Form 8646, Checklist to Identify Delaying Processing FTDs. (See Figure
3.5.17-12). This form will be prepared when bank problems are discovered during normal FTD processing.

The completed form should be forwarded to the FTD IAC. The IAC should ensure that reasons checked on the form are reviewed
and monitored on a periodic basis. An analysis of all forms should be performed monthly at a minimum.

The IAC will contact the depository by telephone after the assessment of each situation has been determined. The method of
contact should be based on the sensitivity of the problem and unsuccessful attempts to resolve the issue.

Copies of any correspondence sent to a depository should also be sent to the St. Louis FRB. Also, in the event a meeting becomes
necessary, an invitation to the St. Louis FRB should be extended.

The IAC will keep chronological records of each situation of depositaries that continue to submit FTDs with discrepancies
checked on Form 8646. Headquarters should be notified if all attempts have failed to resolve ongoing problems. These types
of situations will be shared with Financial Management Service (FMS) for its analysis and involvement to resolve these issues.

Depositaries that are having problems should be contacted periodically to see if it has enough copies of Publication 1510,
FTD Check List for Tellers and Taxpayers. (See Exhibit 3.5.17–6).

Figure 3.5.17-12

When the Comptroller of the Currency closes a bank that is insured by FDIC, FDIC is assigned the responsibility to reconcile
and close out the various accounts on the day of closure. All daily receipts are processed that day (i.e. FTD coupons and
the IRS copy of the AOC is forwarded to IRS). If the closed bank is taken over immediately by another banking institution,
the new bank assumes responsibility for the accounts of the defunct bank after FDIC completes its closeout.

FDIC assumes responsibility for banks that are not purchased by another financial institution. Any deposits received after
the date of closure are returned to the originator (through the banking system) stamped “bank closed”
.

The following are FRB procedures “when the FRB receives a Tax Deposit from the FDIC for a failed bank, the following steps
will assist the IRS with tracking and reconciling the deposit in a more timely manner.”

When a SPC receives a block of work from the FDIC with the defunct banks AOC and St. Louis FRB verifies the amount with the
FRB ABA number, follow the procedures in IRM 3.5.17.22 for Missing FRB/Depository Transmittal of Equal Amounts.

The FTD IAC may contact the FDIC, when necessary to resolve an account. If the IAC cannot resolve the problem after contact
with the FDIC Service Center contact person, the IAC is to inform Headquarters.

The Unpostables Unit may contact the FTD Unit when an attempt is being made to resolve an unpostable FTD document. If necessary,
the FTD Unit should contact the depositaries for the required information. In other situations, particularly when the FTD
Unit discovers that a block of FTDs has been processed twice, they will need to contact the Unpostables Unit and maintain
close coordination until the matter is resolved. Corrective actions should generally be concluded within five workdays after
receipt of the problem item from the Unpostables Unit.

The Unpostables Unit is required to coordinate and obtain approval from the FTD Unit prior to nullifying an unpostable FTD
with Unpostable Resolution Code (URC) 1. The current MFT in the unpostable record must be compatible with the tax class of
the original MFT before URC 1 is acceptable.

The following information should serve as guidelines for several specific types of potential problems areas:

The Internal Revenue Service Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(a), provides identification requirements
for all IRS employees working tax related matters.

You must provide, in a professional and courteous manner, the following information when you communicate with a taxpayer by
telephone, correspondence, or face to face:

.

Greet the caller.

Disclosure check (for account calls only). Follow the guidelines outlined in IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer
Authentication.

Close the Conversation.

When you make outgoing phone calls, or when you leave a voice mail message in response to a callers voice mail message (not a controlled case), state the following:

When you initiate an outgoing phone call, the taxpayer may be reluctant to give you his/her Taxpayer Identification Number
(TIN). To ease any concerns that the taxpayer may have, provide the taxpayer with the last four digits of his/her TIN (Social
Security Number/Employer Identification Number). Then, request that the taxpayer verify the first five digits. After you verify
the TIN, follow IRM 21.1.3.2.3(4)(b), Required Taxpayer Authentication.

Do not leave confidential tax information on a voice mail message or an answering machine message. See IRM 11.3.2.6.1 for further
instructions on what information can be left on an answering machine.

Occasionally, SPCs may choose to send blank AOC forms to depositaries who are involved in a merger or any other emergency
situation. These emergency reorders should be limited to a 30 day supply. The following information must be handwritten/typed
before mailing to the depository. (See Figure 3.5.17-93).

Form 5521, FTD Transmittal Label. This label is distributed to St. Louis FRB and depository banks for addressing envelopes
when they ship the AOCs and FTDs to the SPC. (See Figure 3.5.17-18).

The SPCs may choose to perform an annual mail-out of Form 5521, FTD Transmittal Labels, to each bank on the CBAF. Such efforts
should be coordinated with the appropriate areas prior to the mail-out.

The FTD Transmittal Labels should be checked for the appropriate SPCs address before shipping to the banks.

When shipping the FTD Transmittal Labels, enclose Form 9155, FTD Transmittal Label Reorder. (See Figure 3.5.17-19).

Figure 3.5.17-18

Figure 3.5.17-19

TT&L Plus is the system developed to send and receive files via a web based service from the FRB. It is used in conjunction
with the BEFT system to process multiple functions in the FTD system via a web based service.

Load adjustments from UNISYS.

Create FRB Files.

Transmit files to St. Louis FRB.

Download files from St. Louis FRB.

Log out of TT&L Plus.

Loading Confirmed Debit Vouchers, Confirmed Deposit Tickets, Reversal Requests, and Replacement Card Requests from the Bulkdata
Lite to the BEFT System.

Printing information.

Printing Confirmed Deposit Tickets and Debit Vouchers.

Printing the Daily Confirmed Listing.

Printing the Unconfirmed Listing.

Records will appear on the FTD BOB Register because (See Figure 3.5.17-26, BOB Codes Explanation):

For conditions above (except BOB Code 52), the transmittal will appear on the FTD BOB Register and will reflect all data which
appears under the transmittal. (See Figure 3.5.17-27). In addition, the register will show the following:

For all BOB codes 01 through 08, 10, and 52, the Service Center Transmittal Control Record (SC TCR) will be an error coded
Control Record (CR). When the BOB block is corrected and has passed all BOB validity checks, a SC TCR will be generated. A
Block Control Record (BCR) will be generated at this time to place the item on the SCCF.

The deposit date of the FTD record on the register may appear as “M”
to indicate a missing deposit date on the FTD coupon. The deposit date is not a correctable field from the BOB register.
The AOC deposit date will be generated as the FTD coupon deposit date during TEP processing.

If there is a discrepancy between the Deposit Date on the register and date on AOC and BOB code 06 is not generated, delete
record from register and SCCF. Prepare Form 8164 or original AOC with correct deposit date and re-scan the block through SCRIPS.

Figure 3.5.17-27

Definition—Invalid or Incorrect Correction/Deletion Attempt: Whenever invalid or incorrect BOB Correction/Deletion attempts
are made as defined below, the BOB block will be processed on the recirculating BOB file with BOB Code 00 and any other applicable
BOB Codes. The Transmittal Header count and amount will be restored to its original configuration. No control record output
will be produced for this action.

Resolution: To correct this BOB condition, go to the register where the invalid condition first appeared and correct the BOB
condition as appropriate. (See Figure 3.5.17-28).

Figure 3.5.17-28

Definition—Invalid Service Center (SC) Code or Out-of-Region Transmittal Blocks.

Resolution:

Definition—Invalid FRB Code. FRB Code 08 is the only valid code for all centers.

Resolution:

Definition—Invalid Bank Account and/or Check Digit.

Resolution: Annotate the register with correct data and corrective action taken. Cross out the incorrect bank account number
and check digit. Annotate the correct account number and check digit above in red. Underline the actual count (ACT CNT) in
red. Underline the transmittal BSN in red.

Definition—Invalid Branch Code (BC).

Resolution: Annotate the register with correct data and corrective action taken. Prepare the register for ISRP by crossing
out the incorrect BC and annotating the correct BC above in red. Underline the actual count (ACT CNT) in red. Underline the
transmittal BSN in red.

Definition—Invalid Transmittal Serial Number.

Resolution: Annotate the register with correct data and corrective action taken. Prepare the register for ISRP by crossing
out the incorrect Transmittal Serial Number and annotating the correct Transmittal Serial Number above in red. Underline the
actual count (ACT CNT) in red. Underline the transmittal BSN in red.

Definition—Invalid Deposit Date. An invalid deposit date will appear on the register if the deposit date is not numeric, if
the month is not “0″
through “12″
, if the day is invalid for the month, or if the deposit date is greater than the correct processing date (report date).

Resolution: Review the date entered on the FTD transmittal, Form 2284, and/or Form 8109/8109-B.

Definition—Invalid Number of FTDs and/or Invalid Dollar Value.

Resolution:

Definition—Invalid FTD Sequence Number Received Date.

Resolution—Annotate the register with correct data and corrective action taken. Prepare the register for ISRP by crossing
out the incorrect FTD Sequence Number Received Date and annotating the correct FTD Sequence Number Received Date above in
red. Underline the actual count (ACT CNT) in red. Underline the transmittal BSN in red.

Definition—Invalid FTD Sequence Number.

Resolution: Annotate the register with correct data and corrective action taken. Prepare the register for ISRP by crossing
out the incorrect FTD Sequence Number and annotating the correct FTD Sequence Number above in red. Underline the actual count
(ACT CNT) in red. Underline the transmittal BSN in red.

Definition—Invalid Type Card Code (TCC) on FTD.

Resolution: BOB code 11 must be deleted, corrected, and reinput.