part5-2

5.1.2 
Remittances, Form 809 and Designated Payments

5.1.2.1 
(08-15-2008)
Remittance Processing Overview

  1. This IRM provides procedures for Collection Field function (CFf) remittance
    processing. All remittances secured by Collection Field function (CFf) employees
    (whether in the field or in the office, whether in person or by mail) must
    be transmitted promptly to meet Service goals for timely deposit. See Title
    31, U.S. Code § 3302.

  2. These procedures apply primarily to revenue officers (ROs). Procedures
    for managers and clerical staff are incorporated under the applicable subsection.

  3. Submission Processing is responsible for processing the remittances.
    See the Collection Field Office
    Payment Processing”Collection”
    page at: http://hqnotes1.hq.irs.gov/SubmissionProcessing/SPWebPage.nsf/319d028917d59aa38525684b004cf7ba/72abd89f115b81338525734e005a4f67?OpenDocument
    . This site provides a list of the key remittance processing contacts and
    additional information.

    Note:

    Much of the information contained on the web
    site is designated “Official Use Only (OUO)”
    and the information
    is primarily for CFf employees.

  4. Form 795 /795A, Daily
    Report of Collection Activity    , is used to transmit remittances. Remittances
    must be sent to the appropriate designated Submission Processing Center on
    the day they were collected or as soon as possible the next business day to
    meet Service goals for timely deposit and avoid unnecessary delays in processing.
    See IRM 5.1.2.4, Daily
    Report of Collection Activity — Form 795     for further information
    on report procedures.

    Note:

    Local management is responsible
    for establishing a procedure to handle the processing of remittances and returns
    that are directed to employees who are away from the office. Clerical staff
    cannot prepare payment posting documents. See
    IRM 5.1.2.4     for further details.

5.1.2.2 
(08-15-2008)
Physical Security Controls

  1. All employees and managers are required to adhere to the minimum protection
    standards for remittances, set forth in the following three IRM sections:

    1. IRM 1.16, PHYSICAL SECURITY
      PROGRAM       — specifies physical security controls.

    2. IRM 1.4.6, Managers Security
      Handbook       — provides guidelines for management when performing
      their role to ensure established security standards are followed.

    3. IRM 3.0.167, Losses and
      Shortages       — provides procedures for losses and shortages of tax
      collections, disbursement losses, deposit discrepancies, and transfer of accountability.

  2. The following items must be safeguarded at all times:

    • Remittances, in whatever form

    • Form 809, Receipt for Payment of Taxes

    • The official Received date stamp

    • Personally Identifiable Information (PII)

5.1.2.2.1 
(08-15-2008)
Remittances

  1. Ensure money and securities, etc., are safeguarded at all times, while
    in the office, on Flexiplace, and/or making field calls. Follow the procedures
    displayed in the table below for safeguarding remittances.

    SAFEGUARDING REMITTANCES
    In the Office Each office is responsible for developing procedures
    to address physical security controls over remittances while they are in the
    custody of Collection Field Function (CFf) employees because physical security
    facilities vary.
    In general, to safeguard remittances, place the remittances
    in a safe or a designated locking desk drawer or file cabinet.
    Flexiplace Under the National Agreement, ”
    At a minimum, this will require that all records and data be kept under lock
    and key when not in the possession of the employee.”

    Provide and
    use some type of locking desk drawer or file cabinet to safeguard remittances.
    See Article 50 Section 5 B of the National Agreement.
    Field Calls by
    Car    		 Place remittances in a locked compartment of
    the vehicle.
    Field Calls by
    Public Transportation    		 Place remittances in a locked brief case or other
    secure place.

  2. Date-stamp remittances for the business day they are received.

  3. Use traceable overnight service or other approved method for shipment
    of remittances, returns, and posting documents to ensure the security of tax
    receipts during transit.

  4. Follow up when the Submission Processing Teller Unit doesnt acknowledge
    receipt within 10 workdays. See IRM 5.1.2.4.5.1,

    Form 795 Follow Up

5.1.2.2.2 
(08-15-2008)
Form 809

  1. Form 809, Receipt for Payment of Taxes is a receipt
    book that contains receipts to issue to taxpayers (customers) who request
    a receipt for cash (or check) payment of their taxes. Safeguard Form 809 at
    all times.

  2. Form 809 receipt books are required to be returned to the issuing Submission
    Processing Center if there has been no activity. For example:

    1. No receipt has been issued for 3 years.

    2. Not used by an RO for 10 workdays due to a change
      of position or field office, or separation from service.

    Note:

    Managers must include the return of the Form 809 receipt
    book as part of the clearance process upon separation from service of an employee.

5.1.2.2.3 
(08-15-2008)
Official Received Date Stamp

  1. The official Received date stamp is used to record
    received dates for remittances and filed returns.

  2. Safeguard the official Received date stamp at
    all times. Keep it in a secure office location when not in use to protect
    assigned stamps against unauthorized or indiscriminate use.

    Caution:

    Provide the stamp with high security.

  3. The official Received date stamp should contain
    the following elements:

    Internal Revenue Service

    Received

    Month, Day, Year

    Area
    Director (City, State)

  4. When you use the date stamp:

    1. Place the date stamp in the middle of the front page of a secured return
      (or other document that requires a date stamp).

    2. Make sure the stamp placement will not obscure any information that the
      taxpayer wrote/printed/entered on the return/document.

  5. If a document is date-stamped in error, cross-out the incorrect date
    and initial the correction. This is a necessary step because the Data Conversion
    employees (who are on production by document) are not required to turn documents
    over, and the Service must maintain “received date”
    integrity.

    Note:

    The Submission Processing Centers request Collection Field function (CFf)
    employees who date-stamp payments and/or posting vouchers to make sure they
    date-stamp on the front of the document.

5.1.2.2.4 
(08-15-2008)
Personally Identifiable Information

  1. Personally Identifiable Information (PII) is a specific type of sensitive
    information that includes the personal data of taxpayers, IRS employees, contractors,
    job applicants and visitors to IRS offices. Safeguard PII at all times.

  2. Take care to protect personally identifiable information (PII) at all
    times. Any loss of PII could result in information being compromised to perpetuate
    identity theft. Learn more about protecting PII and deterring identity theft.
    Access the
    Office of Privacy, Information Protection and Data Security website at:
    http://irweb.irs.gov/Privacy/info_protection.html. Also see
    IRM 5.1.12.2, Identity Theft.

  3. Report immediately if you suspect or know of a potential PII loss (including
    the loss of a deposit package).

    Example:

    A check was mailed
    to the Submission Processing Center but it was never received. This would
    be a reportable PII incident.

  4. Report a PII loss, in the following order to:

    1. Your manager.

    2. Computer Security Incident Response Center (CSIRC) at 1–866–216–4809.

    3. Treasury Inspector General for Tax Administration (TIGTA) hotline. See IRM 5.1.2.2.6.1.

    Note:

    Access the
    REPORTING FRAUD, WASTE & ABUSE page on the Intranet at: http://irweb.irs.gov/hotline.asp
    or TIGTAs internet site at: http://www.treas.gov/tigta/.

5.1.2.2.5 
(08-15-2008)
Payment Loss Procedures

  1. Report any loss to your manager immediately if
    you:

    • experience a cash shortage.

    • receive counterfeit funds.

    • are missing negotiable checks or other instruments.

    • are missing seized property.

  2. For additional information relating to payment loss, refer to:

    • IRM 5.1.1, newly titled,
      Balance Due Accounts       under IRM 5.1.1.5 entitled, Security and Control.

    • IRM 3.0.167, Losses and
      Shortages

    • See IRM 5.1.2.2.,
      Physical Security Controls      .

  3. Report any potential theft or embezzlement to:

    1. Treasury Inspector General for Tax Administration (TIGTA) hotline, and

    2. Remittance Security Coordinator (RSC) at the designated Submission Processing
      Center.

  4. Prepare a brief narrative report.

  5. Send the report (and attachment(s)) to TIGTA.

    Note:

    TIGTA will conduct
    an investigation and report the results of the investigation.

  6. Send a copy of the report (and attachments) to the RSC.

    Note:

    The remittance
    security coordinator will monitor the loss and take steps to ensure relief
    is granted to the taxpayer expeditiously. The RSC will control the case and
    protect the taxpayer from incorrect notices while TIGTA conducts their investigation.
    The RSC will ensure that incorrect penalty and/or interest are abated.

5.1.2.2.5.1 
(08-15-2008)
Replacement Check

  1. Request a replacement check from the taxpayer, if applicable.

  2. Prepare Form 795/795A,
    Daily Report of Collection Activity    , to submit the replacement check
    (with the current date).

  3. Complete Form 3465,
    Adjustment Request    .

  4. Attach Form 3465to the replacement
    check to request that the interest and penalty be abated.

  5. Send the replacement check and Form 3465 with
    Form 795/795A, to Submission Processing.

    Note:

    The remittance perfection technician will post the check with the current
    date. Form 5919will not be issued for the
    replacement check unless other error conditions exist.

5.1.2.2.6 
(08-15-2008)
Stolen and/or Altered Remittance

  1. Sometimes a taxpayer will provide evidence that a remittance that he/she
    gave or sent to the IRS has been stolen and/or altered.

  2. Identify a stolen or altered remittance by the characteristics displayed
    in the table below:

    IDENTIFYING A STOLEN OR ALTERED REMITTANCE
    Type
    of Remittance    		 Characteristics
    Altered Remittance

    • Endorsed or made payable to someone else (other than Treasury or IRS)

    • May include changes to money amount
    Stolen Remittance

    • May or may not be cashed.

    • May have been stolen to steal the taxpayers identity

  3. Report any potential theft or embezzlement to:

    1. Treasury Inspector General for Tax Administration (TIGTA) hotline, and

    2. Remittance Security Coordinator (RSC) at the designated Submission Processing
      Center.

  4. If a taxpayer provides evidence that a remittance has been stolen and/or
    altered.

    1. Obtain a written statement from the taxpayer that the original negotiable
      instrument was made payable to the United States Treasury (or Internal Revenue
      Service (IRS)) and sent to IRS.

    2. Input Transaction Code (TC) 470 on the impacted module(s).

    3. Prepare a brief narrative report.

    4. Photocopy both sides of the original negotiable instrument made payable
      to someone other than the IRS and retain a copy of the evidence in the case
      file with the report.

      Note:

      Retain the original negotiable instrument in your case file unless TIGTA
      instructs you to send it to them by mail.

    5. Obtain a photocopy of the “customer’s receipt”
      if
      the stolen or altered remittance was a money order, cashier check, etc.

5.1.2.2.6.1 
(08-15-2008)
Report to TIGTA

  1. Send the report (and attachment(s)) to Treasury Inspector General for
    Tax Administration (TIGTA) and TIGTA will conduct an investigation and report
    the results of the investigation.

  2. Make a report to the TIGTA hotline by one of the following methods:

    • Online — complete and submit the online form on TIGTAs web page
      at: http://www.treas.gov/tigta/contact_report.shtml

    • E-mail — send a secure E-mail message to the TIGTA Hotline Complaints
      Unit at:
      Complaints@tigta.treas.gov

    • Telephone — 1-800-366-4484

    • Fax — 202 927-7018

    • Mail — see note

5.1.2.2.6.2 
(08-15-2008)
Report to the RSC

  1. Send a copy of the report (and attachments) to the Remittance Security
    Coordinator (RSC). The RSC will control the case and protect the taxpayer
    from incorrect notices while TIGTA conducts their investigation. The RSC will
    ensure that incorrect penalty and/or interest are abated.

  2. Obtain the name and telephone number of the RSC contact by checking
    the
    Submission Processing web site at: http://hqnotes1.hq.irs.gov/SubmissionProcessing/SPWebPage.nsf/7746d2301afe8b468525684b004d8cc0/6eaac23277c8234485256ed100726b3b?OpenDocument

5.1.2.3 
(08-15-2008)
Timeliness of Remittances

  1. Remittances are due at the Submission Processing Center within 3 business days from the date the IRS received the funds.
    The timeliness criteria are based on Title 31, U.S. Code § 3302. In general,
    any employee receiving a remittance from a taxpayer must transmit the remittance
    the same day as received or as soon as possible the next business day to ensure
    receipt in the designated Submission Processing Center within 48 hours of
    receipt from the taxpayer. One additional day is allowed for cash conversion.

  2. An overnight traceable method of shipping remittances to Submission
    Processing is required to ensure the earliest deposit to the Treasury.

    1. Five business days are allowed (from the date the
      revenue officer collected the funds) for transmitting remittances to the designated
      Submission Processing Center via regular mail.

    2. Seven business days are allowed (from the date the
      revenue officer collected the funds) for transmitting remittances to the designated
      Submission Processing Center from overseas (all locations outside the continental
      United States, including Alaska and Hawaii).

    Exception:

    The Service recognizes that an overnight
    traceable method is not always available to revenue officers in the field
    or outside of the continental United States, so remittances may need to be
    transmitted using regular mail or overseas mail, as applicable. In those instances
    additional mailing time is allowed.

  3. Annotate the Form 795,
    Daily Report of Collection Activity    , to alert the remittance processor
    at the Submission Processing Center to apply the extended timeliness criteria,
    as displayed in the following table, .

    1. EXTENDED PROCESSING TIME ANNOTATIONS
      Criteria Annotation
      5-day NOT SENT VIA OVERNIGHT MAIL
      7-day SENT VIA OVERSEAS MAIL

  4. Follow the procedures below to prepare and submit
    Form 795/795A, Daily Report of Collection Activity
    .

    Reminder:

    Maintain an adequate supply of overnight
    envelopes while on field calls or Flexiplace to facilitate timeliness of remittances.

5.1.2.4 
(08-15-2008)
Daily Report of Collection Activity – Form 795/795A

  1. A Form 795/795A, Daily Report of Collection
    Activity, is prepared each day that payments and/or returns are secured, or
    as soon as possible the next business day.

  2. You must make alternate arrangements for processing remittances and/or
    returns received by mail while you are on leave or otherwise away from the
    office.

  3. Local management is responsible for establishing a procedure to handle
    the processing of remittances and returns that are directed to employees who
    are away from the office. To ensure separation of duties:

    • Clerical employees must not prepare payment posting documents.

    • Payment posting documents should only be prepared by a revenue officer
      or group manager.

  4. The Integrated Collection System (ICS) records time and activity data
    and produces electronically generated reports. ICS electronically gathers
    much of the information required to complete these reports and the rest of
    the information is input by the user through the ICS workstation.

  5. The two ICS generated reports are (both are printable):

    • Form 795A (CG), Return and Remittance Report —
      use to transmit remittances and returns.

    • Form 795B (CG), Closure/Document Transmittal —
      use to transmit closed cases.

      Note:

      The preparation and submission of Form 795/795B (CG) to transmit closed cases is discussed
      in IRM 5.4.1, Remittance Processing.

5.1.2.4.1 
(08-15-2008)
Paper Form 795

  1. Use paper Form 795 only when unable
    to print Form 795A (CG).

    Example:

    You are working out of
    the office and will not be able to connect to the local area network (LAN)
    on the next business day so you must complete a paper
    Form 795.

    1. Print your name, SEID, address, contact telephone, and all other entries
      accurately and legibly in ink.

    2. Submit the paper Form 795 at the close
      of business each day or as soon as possible the next business day.

  2. Update the cases that were listed on the paper
    Form 795 on ICS as soon as you have access to the LAN.

    Note:

    Failure to update the cases will generate an error on the Submission Processing
    Center unconfirmed transactions report and the Submission Processing Center
    will issue a Form 5919,
    Submission Processing Center Teller’s Error Advice    .

5.1.2.4.2 
(08-15-2008)
Supplemental Form 795

  1. Prepare a supplemental Form 795/795A
    if submission of returns and remittances is delayed for any reason, including
    discovered remittances.

  2. Enter a brief explanation for the delay on both the remittance processors
    and managers copies of Form 795/795A:

    1. Write an explanation for the delay on the reverse of the original copy
      of the supplemental Form 795 if preparing
      a paper form.

    2. Enter an explanation into ICS if preparing Form 795A (CG),
      Return and Remittance Report      .

      Note:

      You may input up to 30 characters
      under the Taxpayers Name which allows the information to be retained with
      the 795 record on ICS. For example, RECEIVED AFTER UPS PICKUP

      .

  3. Ensure the supplemental Form 795/795A
    has the date the transmitted item was received.

  4. Secure your managers initials on the Form 795
    /795A.

  5. Submit the supplemental Form 795/795A
    as soon as possible.

    Note:

    A supplemental Form 795 is considered a late remittance
    error. This error will be included in the “Late Remittances
    and Trends and Patterns”
    reports, but Form 5919
    , Submission Processing Center Teller’s Error
    Advice    , will notbe issued if no other errors
    exist with the remittance.

5.1.2.4.3 
(08-15-2008)
Revenue Officer Procedures for Form 795/795A

  1. Revenue officers will prepare and process a
    Form 795/795A, Daily Report of Collection Activity, each day that
    payments and/or returns are secured as follows:

    1. List all secured payments and returns.

    2. Prepare the appropriate posting document for all secured remittances.
      See IRM 5.1.2.5.

    3. Enclose the completed Form 795/795A,
      Daily Report of Collection Activity and secured remittances in a sealed envelope.

  2. Label the envelope with the following information:

    1. Name of the revenue officer.

    2. Date of Form 795/795A.

    3. Revenue officer SEID number.

    4. Annotate the envelope with the term “LARGE”
      when Form 795/795A includes a remittance(s) of $100,000
      or more, (single or multiple remittances) to ensure the earliest deposit to
      the Treasury. See IRM 5.1.2.6.1,
      Large-Dollar Remittance      .

  3. Submit the sealed envelope as follows:

    IF THEN send the envelope to the
    a. Working in a multiple revenue officer post of duty (POD), Designated clerical contact in the POD
    b. Working in a single revenue officer POD, Submission Processing via overnight traceable mail with carrier packaging
    c. Working away from the POD on extended field calls or Flexiplace,

    		 Submission Processing via overnight traceable mail with carrier packaging
    provided by the PO
    d. Unable to send via overnight traceable mail, Submission Processing via regular mail or overseas mail

    Note:

    Overnight traceable
    carrier labels can be generated from the laptop computer using the UPS internet
    site at: http://www.ups.com/content/us/en/welcome/basics/shipping.html.
    Further information regarding shipping can be found on the intranet
    at: http://publish.no.irs.gov/mailtran/ChSmPKG.html.

  4. Retain a control copy of the Form 795/795A
    until the receipted copy is returned from Submission Processing.

  5. Retain the receipted copy of the Form 795/795A
    in a locked cabinet based on standard security practices.

5.1.2.4.4 
(08-15-2008)
Collection Field Clerical Staff Procedures for Form 795/795A Processing

  1. The designated clerical contact is responsible for submitting the completed
    envelopes to Submission Processing as follows:

    1. Bundle the sealed envelopes, containing the Form 795/795A and remittances,
      into a single package for overnight mail to Submission Processing.

    2. Prepare the Form 3210, Document Transmittal Form,
      with the name of the Revenue Officer, their SEID number and date from each
      sealed envelope.

    3. Send the prepared package (including a copy of the
      Form 3210) to Submission Processing via overnight mail.

    4. Retain a control copy of the overnight mail transmittal until the receipted
      copy is returned from Submission Processing.

    5. Retain the receipted copy of the Document Transmittal form.

    6. Reconcile all Form 3210 transmittals
      and the acknowledgements on a bi-weekly basis. Make sure that Submission Processing
      returned the acknowledgements and that all listed items have a check mark.

    7. Follow up with the destination site if remittance transmittals are not
      returned within 10 days or if all remittances were not marked with a distinctive
      check mark, and no error was charged by the Teller Unit.
      See IRM 5.1.2.4.5.1.

      Note:

      All pages of remittance transmittals
      must be returned. If remittance transmittal pages are lost or missing, this
      is a loss of personally identifiable information (PII)and must be reported
      to CSIRC.

  2. Double-wrap the package (i.e., multiple sealed envelopes or just one
    sealed envelope) in an opaque paper envelope or box.

  3. Write the following on the inside envelope or box:

    1. Name of the person who is authorized to open the package: (i.e., the Submission
      Processing Operations Manager with responsibility for deposits).

    2. Address of the receiving office.

    3. Return address of the office mailing the remittance package.

    4. “Limited Official Use”
      is required to be clearly marked
      or stamped on the front and back of the inside envelope or box

      Note:

      If control
      of Form 795 is centralized, you must include
      the specific address where all Form 795s
      are maintained, on the package.

    5. When the envelope or box contains a single remittance of $100,000 or more or the aggregate total of remittances is $100,000 or more
      (i.e., whether a single remittance or multiple remittances) you must annotate “LARGE”
      on the envelope or box to ensure the earliest deposit
      to the Treasury.

  4. Write the following on the outside envelope or box:

    1. Title of person authorized to open the envelope or box

      Caution:

      Do not include the name of the person.

    2. Name and address of the receiving office

    3. Return address of the office mailing the remittance package

5.1.2.4.5 
(08-15-2008)
Form 795 Control

  1. Establish and monitor a control to ensure delivery of the remittance
    package.

  2. The control must include the amounts of taxpayer receipts by taxpayer
    identification number (TIN), correlated to the package tracer information.

    Example:

    If the transit provider informs IRS that package
    number 12345-67-89 was destroyed, a control is needed to enable proper identification
    of the impacted taxpayer(s) if it is necessary to grant relief.

  3. The control is the overnight mail transmittal (either the copy of Form 3210 or the copy of Form
    795/795A (in the case of a single Form 795
    /795A in one sealed envelope).

  4. In the event of loss, if the control was Form
    3210, the employee responsible for following up must gather a copy
    of each Form 795/795A that was included
    in the package from each revenue officer.

5.1.2.4.5.1 
(08-15-2008)
Control Follow up

  1. Follow up on a timely basis with the destination Submission Processing
    Center regarding delayed acknowledgment of a deposit package.

    Note:

    The remittance
    processor in the teller unit is required to return an initialed copy of Form 795/795A, Daily Report of Collection
    Activity    , to the originating employee as acknowledgment of receipt
    for the remittances, returns, and posting documents. The remittance processor
    must acknowledge receipt of each remittance with a distinctive check mark
    on the transmittal and return an acknowledgement copy of the transmittal to
    the originator at the specific address listed on the transmittal within 5
    workdays.

  2. Establish a paper or electronic follow-up system to ensure:

    1. an acknowledgement copy of Form 795/795A
      has been received from the Submission Processing Teller Unit, and

    2. all the remittances have been processed.

  3. Reconcile all Form 795/795A or Form 3210 transmittals and the related acknowledgements
    on a bi-weekly basis (at a minimum) to ensure that all remittances have been
    received in and processed by the Submission Processing Teller Unit.

  4. Follow up with the destination center if the teller unit does not acknowledge
    receipt. Follow up when:

    1. you do not receive an acknowledgement copy of the transmittal with 10
      days, or

    2. all remittances are not acknowledged (i.e., marked with a distinctive
      check mark on the transmittal) and no error was charged by the Teller Unit.

  5. Request follow up from the campus by faxing a copy of the remittance
    transmittal to the Field Office Payment Processing designated liaison.

  6. The appropriate fax numbers are:

    • Cincinnati (859) 669–3792

    • Ogden (801) 620–3962

  7. Place the receipted copy of the document transmittal form in the file.

5.1.2.4.5.2 
(08-15-2008)
Form 795 Loss Report

  1. Report a lost remittance package (i.e., the loss of personally identifiable
    information (PII)) immediately to:

    1. your manager,

    2. the Computer Security Incident Response Center (CSIRC) at 1–866–216–4809,
      and

    3. the Treasury Inspector General for Tax Administration (TIGTA) hotline.

    See IRM 5.1.2.2.6.1, Personally Identifiable Information, for information about
    how to contact the TIGTA hotline.

  2. Describe the contents of the remittance package in the report:

    1. Number of sealed envelopes (containing Form 795
      /795A, remittances (i.e., checks, money orders, cashiers checks,
      or cash), and secured returns).

    2. Form 3210, if applicable.

    3. Overnight mail transmittal, if applicable.

5.1.2.4.6 
(08-15-2008)
Responding to Form 5919

  1. Submission Processing will send Form 5919, Tellers Error Advice electronically to your manager when
    a remittance processor receives one of the following:

    • Form 795/795A, Daily Report
      of Collection Activity       with an error(s) or submitted late.

    • Late remittance.

    • Late return.

    • Form 809 with an error(s) or submitted late.

      Note:

      Refer to IRM 3.8.45.30.9,
      Form 5919, Tellers Error Advice Issuance Criteria      , for further information.
      Also see IRM 3.8.45–98,
      Form 5919 Teller’s Error Advice Issuance Criteria (How to Handle Errors).

  2. For the procedures specific to Form 5919 involving
    Form 809,
    See IRM 5.1.2.7.6.

5.1.2.4.6.1 
(08-15-2008)
Processing Form 5919

  1. The manager will forward an electronic copy of the
    Form 5919to the originating employee for corrective action.

  2. Take corrective action upon receipt of Form 5919
    from your manager.

    1. Prepare a supplemental Form 795/795A, Daily Report of Collection Activity, as the transmittal to
      return the Form 5919 to the Submission Processing
      Field Office Payment Processing Unit.

    2. Include copy of Form 5919 with Form 795/795A.

    3. Annotate “Response to Form 5919″
      on
      Form 795/795A to identify Form 5919 as
      the basis for submitting a supplemental Form 795/795A.

    4. Send the correction, together with copy of Form
      5919, to the remittance processor via the supplemental Form 795/795A, generally within 15 workdays of issuance.

5.1.2.5 
(08-15-2008)
Payment Documents and Posting Procedures

  1. Use suitable posting documents containing all of the information needed
    for deposit and input into the Integrated Submission Remittance System (ICS)
    whenever possible. Acceptable payment documents include, but are not limited
    to the following:

    • Form 3244, Payment Posting
      Voucher      .

    • Form 809, Receipt for Payment of Taxes.

    • Turnaround notices (MF and IDRS notices to taxpayer).

    • Form 1040-ES, Estimated Tax for Individuals.

    • Correspondence.

    Note:

    Some documents may be brought up to acceptable standards
    by adding information and coding and editing.

  2. To be acceptable for input, the posting document must identify the originator
    and contain:

    • Taxpayer name, last known address (including zip code), and Taxpayer Identification
      Number (TIN).

    • MFT and period.

    • Payment received date.

    • Payment amount(s) and transaction codes(s).

      Reminder:

      Do not use pen and ink changes on ICS or macro generated
      payment processing vouchers. Pen and ink changes are never acceptable.

  3. For the payment received date, use the date the payment is actually
    received by the IRS. However, if some other designated official/agency initially
    receives the remittance, e.g., the U.S. Attorney in foreclosure actions, use
    the date of receipt by that agency and enter a brief statement in the remarks
    section of the posting document to explain why the earlier date was used.

  4. Prepare Form 3244 to process a payment
    if:

    1. Form 809 receipt is either not required or can not be used as a posting
      voucher, or

    2. Other suitable posting document is not available.

  5. Prepare payment documents (other than receipts) in original only.

  6. Prepare Form 3244 (or other posting
    document) carefully and correctly to avoid posting delays. Only one debit
    transaction and two credit transactions are allowed per posting voucher. Additionally
    the dollar amounts must be in balance to the credit side.

    Note:

    Submission
    Processing identified problem areas including the lack of designated payment
    codes, lack of employee numbers to identify the preparer, incorrect name controls,
    and incorrect TINS. The procedures for completion of the
    Form 3244 are in IRM 3.8.45–9.

  7. Pay close attention to the amount of money collected and ensure the
    posting voucher reflects the actual amount of money collected.

    Example:

    If a balance of $1,200 is due on a notice, and the taxpayer remits $600, ensure
    the amount collected is accurately reflected as $600. If using a pre-printed
    payment posting voucher, write in the actual amount collected.

  8. Payments remitted with a posting voucher for the wrong taxpayer or incorrect
    money amount will be issued Form 5919 Tellers Error Advice.

5.1.2.5.1 
(08-15-2008)
Transaction Codes

  1. A transaction code is a three digit numeric code used to identify a
    transaction being processed and to maintain a history of actions posted to
    a taxpayers account on the Master File.

  2. Use Transaction Code (TC) 670 when preparing a payment posting document
    for:

    1. All assessed amounts, all accrued failure to pay (FTP) penalty, and accrued
      interest, except in those instances described in (3) below.

    2. All federal tax deposits (FTDs) secured by an employee in an area office.
      These FTDs are not routed through the FTD system and are, therefore, treated
      as subsequent payments.

    3. All BMF estimated payments (ES) for the Form 1120
      series of returns.

    4. Payment of lien fees. If the lien fees have not yet been assessed, use
      TC 360 simultaneously with TC 670.

    5. Payment received resulting from service center actions e.g., a substitute
      for return (SFR) or an additional tax assessment.

  3. Use the appropriate transaction code in the following special cases:

    TRANSACTION CODES
    Special Cases
    Case Type of Payment Transaction Code

    		 Additional Transaction
    Code
    1 IMF module — payment designated as an estimated
    payment (ES)     		TC 430  
    2 IMF or BMF module — with a restricted interest
    indicator (TC 340 or TC 341)     		TC 680 — to post the amount of accrued
    interest     		 
    3 IMF or BMF module — with a restricted FTP
    penalty indicator (TC 270 or TC 271)     		TC 670 — to post the remittance amount

    		 TC 270 — to post the amount of accrued
    penalty
    4 IMF, BMF, or civil penalty module — payment
    of sale and/or administrative costs     		TC 694

    Note:

    Use TC 360 to post the amount of
    the collection costs simultaneously with TC 694 if the collection costs have
    not yet been assessed.

    		TC 670 — to post any funds received in
    excess of the collection costs
    5 IMF, BMF, or civil penalty module — pre-assessed
    payment secured as an advanced payment of a deficiency     		TC 640 (Advance Payment of Determined Deficiency
    or Underreporter Proposal)
    Take the following action to create a module
    to post the pre-assessed payment to a civil penalty module:

    • Establish a name line .

    • See IRM 4.4.11.7, Civil
      Penalty Name Lines      .

    		 
    6 IMF, BMF, or civil penalty module — payment
    designated for application to interest or penalty     		TC 680 — to post the amount of designated
    interest     		TC 690 — to post the amount of designated
    penalty other than the FTP penalty
    7 IMF, BMF, and civil penalty module — payment
    secured on a 6020(b) return which is not yet processed     		TC 640 — to post the remittance amount

    		  
    8 IMF, BMF, or civil penalty module — payment
    received:

    • prior to Bal Due issuance

    • before the posting of TC 671 (Subsequent Payment Check Dishonored) (i.e.,
      a pending TC 671 is reflected on IDRS)

    		TC 670 TC 570 (“Additional Liability Pending
    ”
    )

    Note:

    Take the following action to ensure that the credit will not
    be refunded as an overpayment:

    • Request input of TC 570 as the secondary TC.
    9 BMF or NMF module — payment designated
    as an estimated payment (ES) for :

    • Estate Taxes — Form 706

    • Gift Taxes — Form 709

    		 TC 660  
    10 NMF module — payment of interest or penalty

    		 TC 680 — to post the amount of FTP TC 270 — for any unassessed amounts of
    FTP penalty included in the payment
    11 NMF module — payment of accrued interest

    		 TC 670 — to post the remittance amount

    		 TC 340 — for the amount of accrued interest
    12 NMF module — payment of accrued FTP penalty

    		 TC 670 — to post the remittance amount

    		 TC 270 — for the amount of accrued FTP
    penalty
    13 NMF module — full payment TC 670 — to post the remittance amount
    or other applicable TC per above
    Take the following action in addition
    to posting the payment:

    • request input of command code STAUP 12,

    • use a separate input document from the one used to input the transaction
      codes.

    Note:

    Use TC 670 to apply the excess to the earliest period if
    the NMF payment exceeds the total of assessed tax, interest, and penalty for
    all periods.

    		Other TC, if applicable, per above

5.1.2.5.2 
(08-15-2008)
Unassigned Account or Module

  1. When accepting a tax payment for an account or module that is not on ICS, either:

    1. Create an ICS only account or module and post the payment through ICS,
      or

    2. Use the Form 3244macro process.

  2. If the “Taxpayer Name,”
    “Name Control,
    ”
    and “TIN”
    are pre-populated on the Form 3244(due to having the case open on ICS), select
    the CLEAR button. This will remove the pre-populated
    taxpayer data and allow manual entry of the correct taxpayer information on
    the Form 3244prior to printing the form.

    Note:

    If a payment is received from an unidentified taxpayer, include the payment
    on Form 795A on the day of receipt. Note the payment is “UNIDENTIFIED.” The
    payment will be researched as well as processed at the destination SP center.

5.1.2.5.3 
(08-15-2008)
Manual Federal Tax Lien Release

  1. There are certain conditions when a manual lien release is necessary
    after a liability is fully satisfied. Refer to paragraph (5) in IRM 5.12.3.2.1, Liability is Satisfied for
    these conditions.

  2. To request a timely manual lien release, contact the Centralized Lien Unit (CLU). The
    CLU contacts are posted on the IRWeb at: http://serp.enterprise.irs.gov/databases/who-where.dr/als.dr/case-processing-lien-units.htm.

    Note:

    An internal use only telephone number is provided along with the contact
    information on the CLU web site. Do not give this number to a taxpayer. Ensure
    all E-mail communications regarding liens are sent via secure E-mail.

    .

  3. Request the contact to prepare and process the manual lien release after
    you have posted the payment. See IRM 5.1.2.5.3.1
     for specific posting procedures.

    Note:

    Employees of functions with
    access to the Automated Lien System (ALS) will input lien release requests
    in the situations described in IRM 5.12.3.2.1.

5.1.2.5.3.1 
(08-15-2008)
Manual Lien Release Consideration – Timely Posting of Payments

  1. Payments must be posted timely in order to ensure lien releases are
    systemically issued in a timely manner. You must post the remittances on the
    day received.

  2. Determine if the payment is sufficient to cover the tax liability of
    the tax period specified on the payment. See
    IRM 5.1.2.8    , Designated Payments, for procedures
    to follow if the payment is designated.

  3. Ensure interest and penalty calculations are computed as of the day
    of posting. This is particularly important for split payments.

    1. Provide the exact amount to post to each module on the posting document.

    2. Ensure that full payment also includes all appropriate accruals of penalty
      and interest since the date of any restricted assessments if there is restricted
      penalty or interest.

  4. Perform additional research and resolve any outstanding issues on the
    account, including determining if there are any freeze codes that will delay
    credit posting.

  5. Determine whether the taxpayer has outstanding balances in other tax
    periods.

  6. If a payment was received based on a levy, and all balances due (Bal
    Due) on the levy are fully paid, see IRM 5.11.2.2, Releasing Levies, to determine appropriate action.

  7. Apply available credits to satisfy the outstanding balances in other
    tax periods in the following order:

    1. Oldest tax

    2. Penalty

    3. Interest

    Note:

    This order of payment application is based on Rev. Proc. 2002-26, which provides the Services
    position regarding payment application by the Service of a partial payment
    of tax, penalty, and interest for one or more taxable periods.

  8. Do not apply a payment to an assessment for which the collection statute
    expiration date (CSED) has expired i.e., when IDRS includes a Bal Due(s) with
    an expired CSED, unless permission is provided in the IRM. See IRM 5.16.1.2.2.1, Imminent Statute Expiration.
    Also see IRM 5.16.1.2.2.5, Report of
    Statute Expiration    , regarding reporting accounts uncollectible
    when CSEDs expire.

  9. Check for multiple assessments and CSEDs:

    1. Determine if a situation exists where a lien needs to be released because
      the assessment for which the lien was filed is fully paid even if there is
      still a Bal Due on the tax period based on later assessment(s).

    2. Ensure penalty and interest based on the assessment on the lien is fully
      paid prior to requesting releases in these situations.

  10. Refer to paragraph (5) in IRM 5.12.3.2.1 for
    conditions requiring a manual lien release.
    See IRM 5.1.2.5.3     above for additional information.

5.1.2.5.4 
(08-15-2008)
Inactive Account

  1. An inactive account is an account that is currently not collectible
    (CNC) or is a not on the Master File (NMF). Follow these procedures to process
    a payment on an inactive account.

    1. Forward any payment received for an account previously reported currently
      not collectible (CNC) by TC 530 (i.e., “53d”
      ) or NMF
      account for input on Form 795/795A, Daily Report of Collection Activity.

    2. Annotate the posting document as shown in the table.

      Type Annotate Posting Document
      • CNC

      1. Payment pertains to a “53d”
        module

      2. “53d account”

      3. “Not on IDRS”
        if a “53d”
        account
        is not on IDRS

      • NMF Not on IDRS

5.1.2.5.5 
(08-15-2008)
Application of Proceeds in Certain Situations

  1. There are certain situations where you may receive funds that are not
    directly from a taxpayer or another source. In addition, certain types of
    accounts may require special payment application or types of processing. These
    situations include:

    • Levies, and

    • Offer in Compromise.

5.1.2.5.5.1 
(08-15-2008)
Application of Proceeds from a Levy

  1. If the funds were the result of a levy and the levy has now been satisfied,
    a levy release must be prepared and issued to the applicable third party.
    See IRM 5.11.2.5, Serving
    Levies, Releasing Levies and Returning Property    ,Disposing
    of Surplus Proceeds    .

  2. Also see IRM 5.10.6.1,
    Post Sale Actions and Responsibilities of Technical Support    , Application of Proceeds of Levy and
    IRM 5.10.7.2, Acquired Property and Property Redeemed
    by the United States    , Income from Acquired Property
    .

5.1.2.5.5.2 
(08-15-2008)
Processing Offer in Compromise Receipts

  1. Funds submitted with an offer to compromise a liability or during the
    pendency of an offer to compromise are considered a non-refundable payment
    of tax, and are applied to the liability until a decision is made. The taxpayer
    may designate the payment(s) be applied to a specific tax period or liability
    during the consideration of the OIC; however, the request must be in writing.

  2. Collection Field function (CFf) (RO) employees should never process
    payments related to an offer. Ship all offers, secured by a CFf (RO) employee
    to the appropriate COIC site within 24 hours of receipt, which should include
    the Form 656, Form
    657and all appropriate payments (Tax Increase Prevention and Reconciliation
    Act of 2005 (TIPRA) and application fee). See IRM 5.8.2.2
    (3), Initial Offer Receipts for further
    direction.

5.1.2.6 
(08-15-2008)
Forms of Remittances

  1. Certain forms of remittances require special handling. These include
    payments in the form of:

    • Large Dollar Remittances

    • Cash Payments

    • Payments by Check

5.1.2.6.1 
(08-15-2008)
Large Dollar Remittances

  1. A large-dollar remittance requires special handling to ensure the earliest
    deposit to the Treasury so the government will enjoy the maximum availability
    of funds and earn interest at the earliest opportunity. A large-dollar remittance
    is:

    • a single remittance or aggregate remittances of $100,000 or more

    • a single remittance of $1 million or more

  2. Write LARGE on the envelope when preparing Form 795/795A including a remittance or remittances
    of $100,000 or more, (i.e., whether a single remittance or multiple remittances).

  3. Locate the large-dollar remittances mail stop on the
    Submission Processing Center Field Office Payment Processing web page

    http://hqnotes1.hq.irs.gov/SubmissionProcessing/SPWebPage.nsf/319d028917d59aa38525684b004cf7ba/72abd89f115b81338525734e005a4f67?OpenDocument.

    The large-dollar remittances mail stops are listed in the ”
    Designated Addresses for Field Office Collected Remittances Only”
    column.

    Note:

    Some offices do not have a large-dollar remittances mail stop.

  4. Send the envelope containing a remittance(s) of $100,000 or more to
    the large-dollar remittances mail stop, if applicable.

5.1.2.6.1.1 
(08-15-2008)
Remittance Over $1M

  1. The following additional actions are required upon receipt of a single
    remittance of $1 million or more.

    1. Locate the designated remittance liaison on the
      Submission Processing Center Field Office Payment Processing web page

      http://hqnotes1.hq.irs.gov/SubmissionProcessing/SPWebPage.nsf/319d028917d59aa38525684b004cf7ba/72abd89f115b81338525734e005a4f67?OpenDocument.

      Obtain the liaisons telephone number or E-mail address provided in the “Phone”
      column.

    2. Alert the liaison that you will be sending a single remittance of $1 million
      or more. E-mail or call the designated liaison upon receipt of a single remittance
      of $1 million or more. Contact the acting designated liaison (or their manager)
      if the designated liaison is unavailable when you call.

5.1.2.6.2 
(08-15-2008)
Cash Payments

  1. Ensure that the money you accept is not counterfeit.
    Be aware of the techniques for detecting counterfeit money. For further information,
    obtain literature from the Secret Service field office or online.

    Note:

    Management can request the Secret Service field office to provide a lecture
    to a group of employees who receive cash payments, however, management must
    not request the Secret Service to instruct personnel on an individual basis.

  2. Issue Form 809, Receipt for Payment of Taxes,
    in every instance when cash is received. See
    IRM 5.1.2.7.5, Issuing Form 809.

  3. Convert a cash payment:

    1. to a check/bank draft or money order within 24 hours of receipt from the
      taxpayer before sending for processing.

    2. by the close of the business day on which it was collected, or as soon
      as possible on the next business day, to minimize the risk of loss and to
      ensure employee safety.

  4. Make the check/bank draft or money order payable to United States Treasury.

  5. Identify the bank draft or money order on Part 3 of Form 809 and record
    the following in the block provided:

    1. the name of the issuing financial institution or money order vendor,

    2. the serial number, and

    3. the date of conversion.

  6. Annotate Part 1 of Form 809, if applicable, that the payment relates
    to a Form 2209,Courtesy Investigation
    . See IRM 5.1.8, Courtesy
    Investigations    .

  7. Prepare a posting document to apply the payment to the Bal Due and/or
    return.

  8. Follow the procedures for preparing a currency transaction report. See IRM 5.1.2.6.2.1.

5.1.2.6.2.1 
(08-15-2008)
Currency Transaction Report (CTR)

  1. The Currency Transaction Report (CTR) came into existence with the passage
    of the Currency and Foreign Transactions Reporting Act, better known as the
    Bank Secrecy Act (BSA), in 1970.

  2. FinCEN Form 104, Currency Transaction Report,
    is required to be filed for each deposit, withdrawal, exchange of currency,
    or other payment or transfer, by, through, or to the financial institution
    which involves a transaction in currency of more than $10,000. However, the
    Treasury Regulations provide an exemption for filing a CTR: Treasury Regulation
    [31 CFR 103.22(d)(2)(ii)] provides, in pertinent part that:

    “No bank is required to file a report … with respect to any transaction
    in currency between an exempt person and such bank”
    and ”
    an exempt person is”
    … “a department or agency of the
    United States.”

  3. Point out the Treasury Regulation exemption if a financial institution
    asks you to complete a CTR when you need to convert more than $10,000.

    Note:

    Furnish your credentials to the financial institution upon request. (The procedures
    apply even if you use a pseudonym.)

  4. Complete a CTR when the financial institution insists that one be completed
    for a cash transaction of more than $10,000 if there is no other readily available
    depository.

    1. Use the consolidated EIN when you complete a CTR.

    2. See LEM 5.1.2.1, Consolidated
      IRS EIN for Currency Transaction Reports (CTR)s      .

  5. Alternative cash payment arrangements may be made by Collection managers
    by following these steps:

    1. Contact the financial institution operations manager to request a blanket
      exemption for all revenue officers if a financial institution will not allow
      the exemption.

      Note:

      A revenue officer would have to present his/her commission
      to verify his/her identity to the financial institution if such a blanket
      exception was arranged.

    2. Make alternate cash conversion arrangements with another financial institution
      if the financial institution still does not allow the exemption.

      Note:

      Inform
      the revenue officers once the arrangement has been arranged.

    3. Determine whether to pursue the matter with the headquarters of the financial
      institution which refused to allow the exemption.

    4. Take any further appropriate action to attempt to make an arrangement
      with the financial institution.

5.1.2.6.2.2 
(08-15-2008)
Property Appraisal and Liquidation Specialist Cash Procedures

  1. These additional procedures apply to Property Appraisal and Liquidation
    Specialist (PALS) employees.

    1. Use counterfeit detection pens on currency at the time it is received,
      when possible.

    2. Use a Standard Form 215-A (SF 215–A), Deposit Ticket
      . See IRM 5.10.5.17,
      Cash Conversion      , for further information.

    3. Use the above cash deposit procedures when cash is received at a sale.

      Exception:

      Circumstances may prevent the use of SF 215–A,
      such as a sale held in a small rural community and access to a Treasury General
      Account Bank is not readily available.

  2. When access to a Treasury General Account Bank is not readily available,
    make arrangements to convert the cash at a local bank, in accordance with
    Treasury Regulation 31 CFR 103.22(d)(2)(ii). See IRM
    5.10.4.14, Arrangements to Convert or Deposit Cash
    .

5.1.2.6.3 
(08-15-2008)
Check or Money Order Payments

  1. Instruct taxpayers to make a check or money order payable to: United States Treasury.

  2. Accept a check or money order made payable to any of the following “acceptable”
    forms of payee (or some other form of payee clearly
    intended to conform to any of the following):

    • US Treasury

    • U.S. Treasury

    • Department of Treasury

    • Dept. of Treasury

    • Department of the Treasury

    • Dept. of the Treasury

    • Internal Revenue Service

  3. Prepare posting documents to apply the correct portion of the payment
    to each Bal Due and/or return if one payment is received for several Bal Dues
    and/or returns.

5.1.2.6.3.1 
(08-15-2008)
Overstamping or Endorsing

  1. Accept a check or money order made payable to an “unacceptable
    ”
    payee (i.e., other than to one of the payees listed in (2) above)
    or if the payee line is left blank and overstamp the payee with the words United States Treasury.

    Note:

    Local offices should procure
    a United States Treasury stamp if they do not already
    have one. The letters should be in a font that will produce a very legible
    stamp impression (e.g., 16-pitch Arial font). See IRM
    Exhibit 3.8.45–3, Overstamping Guidelines
    and Acceptable Payments    .

5.1.2.6.3.1.1 
(08-15-2008)
Payee is a Collection Employee

  1. If a check is made payable to a Collection employee, endorse the check
    or money order as follows:

    1. Write Pay to the order of the United States Treasury in
      the space provided for endorsement on the back of the check.

    2. Write your signature below the endorsement.

    3. Write Signature of Collection Employee below your
      signature.

5.1.2.6.3.1.2 
(08-15-2008)
Payee is the Taxpayer (Levy Payment Payable to the Taxpayer)

  1. Treat a levy check made payable to the taxpayer as a seized check.

  2. Endorse the check as follows:

    1. Type or stamp this endorsement on the back of the check:
      This check (money order) and the proceeds thereof have been seized under authority
      of Title 26, United States Code, Section 6331, for application on the unpaid
      tax liability of (name of the taxpayer), and is herewith deposited to the
      credit of the Treasurer of the United States, (name of the area director),
      Area Director of Internal Revenue Service (Area Number).

      Note:

      Place
      the endorsement within the 1.5-inch area beginning at the leading edge of
      the check.

    2. Write your signature below the endorsement.

    3. Write Signature of Collection employee below your
      signature.

  3. For further information on seized checks see
    IRM 5.10.3.11.1, Checks and Money Orders.

5.1.2.6.3.1.3 
(08-15-2008)
Restrictive Endorsement

  1. Accept a payment that is endorsed by the payee in such a manner that
    it is immediately negotiable.

  2. Restrictively endorse the check or money order immediately below the
    last endorsement by writing or stamping For Deposit Only -
    United States Treasury    .

    Note:

    Local offices should procure a For Deposit Only – United States Treasury stamp if they do
    not already have one. The letters should be in a font that will produce a
    very legible stamp impression (e.g., 16-pitch Arial font).

5.1.2.6.3.2 
(08-15-2008)
Property Appraisal and Liquidation Specialist Check Procedures

  1. A Property Appraisal and Liquidation Specialist (PALS) employee should
    endorse the check or money by writing or stamping For Credit
    to U.S. Treasury/ALC 20–09–2900–4     on the back of
    the check.

  2. Send this type of remittance to the Ogden Submission Processing Center.


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