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 277. Electronic Payments

3.17.277  Electronic Payments

3.17.277.1  (01-01-2009)
Electronic Federal Tax Payment System

  1. The Internal Revenue Service is modernizing and automating the cash management functions. The Electronic Federal Tax Payment System (EFTPS) decreases the cost of collecting and processing tax revenue.

  2. The Electronic Federal Tax Payment System (EFTPS) processes the following payments:

    • Federal Tax Deposits (FTD) — Most large businesses are required to make their deposits electronically using EFTPS.

    • Voluntary electronic payments — Any taxpayer has the option of using EFTPS to submit any federal tax payment to IRS.

    • E-file Electronic Funds Withdrawal — Individual and business taxpayers who e-file balance due tax returns and extension requests can elect to have their bank account debited for the amount due while e-filing. Additionally, up to four Form 1040-ES payments can be scheduled for withdrawal while e-filing a Form 1040 series return. See IRM 3.17.277.1.4.7.

    • Credit or Debit card payments— Individual and certain Business balance due payments may be made by credit or debit card . ATM/Debit card payment option will be available through the service providers. See IRM 3.17.277.1.4.6

    • Government Agency Tax Deposits— Payments made by government agencies are initiated through the FEDTAX II application. See IRM 3.17.277.1.4.5

    • Federal Payment Levy Program Payments (FPLP) — Levy payments are received from the Treasury Offset Program. See IRM 3.17.277.1.4.8

    • Bureau of Alcohol, Tobacco and Firearms Payments (ATF) - Payments erroneously received for ATF. These payments will need to be transferred to ATF via Intra-governmental Payments and Collection System (IPAC). See IRM 3.17.277.1.4.10

    • Electronic Bill Payment System (EBP) - These are tax payments received through electronic bill paying services, currently Checkfree and Household. See IRM 3.17.277.1.4.11.

    • State Income Tax Levy Payments (SITLP)- Levy payments received from individual states on behalf of taxpayers. See IRM 3.17.277.1.4.12

    • Social Security Administration Levy (SSA Levy)- Levy payments received from SSA benefits on behalf of taxpayers. See IRM 3.17.277.1.4.13

    • Remittance Strategy for Paper Check Conversion (RS-PCC)- RS-PCC is the process of converting paper checks into electronic ACH (Automated Clearing House) Debits. These are tax payments, Insolvency payment and Offer in Compromise payments that are received in Brookhaven, Memphis and Philadelphia. See IRM 3.17.277.1.4.15

  3. IRS EFTPS processing is located only in ECC - Memphis at the Memphis IRS Campus. Effective July 1, 2005, balancing and error resolution functions were incorporated into EFTPS operations in the Ogden Submission Processing Center Accounting Branch.

3.17.277.1.1  (01-01-2009)
Financial Agent Responsibilities

  1. Bank of America (BOA), along with its primary subcontractor First Data Corporation, is authorized to operate EFTPS as its Treasury financial agent. Effective November 14, 2004, Bank of America took over complete operation of EFTPS.

  2. The Financial Agent:

    1. Enrolls taxpayers in EFTPS.

    2. Establishes a taxpayer database, which includes entity information and tax types.

    3. Operates the eftps.gov web site to accept payment and enrollment information from taxpayers.

    4. Receives payment information from the taxpayers or their banks.

    5. Initiates the transfer of the tax payment amount from the taxpayer's bank account upon a taxpayer's request.

    6. Validates the entity information and selected elements of the payment data.

    7. Transmits the necessary payment information for each taxpayer to EFTPS.

    8. Performs balancing activities to ensure that the detailed payment records match the sum of the money moved into the Treasury's Account at the Federal Reserve.

    9. Generates the Deposit Ticket and Debit Voucher and relate that information to each payment transaction.

    10. Responds to taxpayer inquiries about the electronic payment process.

    11. Receives and processes Electronic Data Interchange (EDI).

    12. Develops and transmits reports to IRS and the Financial Management Service.

    13. Accepts, processes, and transmits taxpayer data to the IRS for Automated Clearing House (ACH) Debits, ACH Credits, and same day Federal Reserve Electronic Tax Application (FR-ETA) transactions.

    14. Provides Voice Response Unit, operator assistance, personal computer, and Internet application payment methods to the taxpayers.

    15. Registers service providers, and receives, processes, and acknowledges enrollment and payment files using the bulk, batch, and single debit applications.

    16. Provides payment warehousing and categorization of data by amount and subcategory, verification, and validation of tax data.

    17. Provides accessibility to entity and transaction data for authorized IRS employees.

    18. Initiates, receives and processes tax payment within the fifty United States and protectorates, Canada, Mexico, and the international community.

    19. Makes changes, adds or deletes certain elements, data, or records as required by the IRS to comply with legislative or regulatory changes timely and as needed.

    20. Maintains and updates an enrollment database upon receipt of weekly entity information from the IRS.

    21. Operates a system for all financial institutions.

3.17.277.1.2  (01-01-2008)
Financial Agents Customer Service Telephone Numbers

  1. Taxpayers are directed to call the financial agent for assistance on EFTPS.

  2. Bank of America assistance numbers are:

    • 1–800–555–4477 (Business)

    • 1–800–316–6541 (Individual)

    • 1–800–555–8778 (EFTPS OnLine)

    • 1-888-353-4537 (VRS for EFW)

    • 1–800–244–4829 (Spanish)

    • 1–800–733–4829 (TDD)

    • 1-303–967–5916 (International direct dial)

    • 1–800–605–9876 (Financial institutions)

    • 1–866–684–6556 (Bulk Providers)

    • 1–800–945–0966 (Batch Providers)

    • 1–877–333–8292 (FEDTAXII - government agencies)

  3. Enterprise Computing Center (ECC) - Memphis may call any of the financial agent numbers listed above or call Bank of America at 303–488–8700 to report production problems.

  4. Taxpayers with EFTPS enrollment entity issues that the financial agent cannot resolve may be referred to the IRS e-Help Desk at 1-866-255–0654 (EFTPS is option 3).

  5. Other IRS entity questions may be referred to the IRS Business and Specialty Tax Line at 1-800-829-4933.

3.17.277.1.3  (01-01-2009)
EFTPS Customer Service Responsibilities

  1. IRS Accounts Management/Contact Representatives should use Command Code EFTPS and other IDRS research command codes such as BMFOL and IMFOL to research electronic payments.

  2. Accounts Management/Contact Representative may use the financial agent phone numbers for additional research.

  3. EFTPS employees are not authorized to provide banking or other taxpayer information to Compliance or other IRS employees for enforcement purposes. However, Compliance and other IRS employees using CC EFTPS definer E, can obtain the Depositary Financial Institution (DFI) number indicating the financial institution used to make taxpayer payments. Looking up the DFI number in public banking industry references (e.g. American Financial Directory) will yield the specific bank name, address, and phone number.

  4. Anyone can look up the DFI number at the Federal Reserve Financial Services web site (www.fededirectory.frb.org/search_ACH.cfm). Enter the DFI number in the Routing Number field and press " search" .

3.17.277.1.4  (01-01-2008)
EFTPS Payment Types

  1. EFTPS payment methods are identified by the second position of the EFT number. See IRM 3.17.277.4.3

  2. A description of each payment type is included in the following sections. See IRM 3.17.277.1.

3.17.277.1.4.1  (01-01-2008)
ACH Debits

  1. ACH Debits, also known as EFTPS Direct, represent the majority of payments processed by EFTPS.

  2. Enrolled taxpayers using ACH debit must call or access on-line the designated financial agent by 8:00 p.m. eastern time the calendar day before the payment is due.

    1. Taxpayers, or their representatives, may initiate an ACH debit using the Internet, voice response messages or by talking with a customer service representative.

    2. A confirmation number for each payment is provided at the end of the call.

    3. The financial agent will then initiate a debit against the taxpayer's pre-validated routing transit number and bank account on the requested settlement date.

  3. The confirmation number given to the taxpayer is the last eight positions of the EFT number. Reconstruct the complete EFT number, as follows:

    Position 1 2 - Bank of America
    Position 2 2 - ACH debit
    Position 3 0 through 9 - Combined Payment Indicator
    Positions 4 - 7 Year/Julian date of settlement YDDD
    Positions 8 - 15 Confirmation number

  4. ACH debit taxpayers may also elect to warehouse their payments for settlement up to 120 days for businesses and 365 days for individuals.

  5. ACH debits are identified by payment method code "2" in the second position of the EFT number.

  6. Bulk providers may initiate a single ACH debit for multiple tax payments. These payments are identified by an combined payment indicator of "7" ,"8" , or "9" in position three of the EFT number. In addition, the specific Bulk Provider is identified by a Bulk Provider number in positions 8 and 9. See IRM 3.17.277.15.(13) for table of Bulk Provider numbers.

  7. EFTPS Single Debit payments are currently limited to fiduciaries who previously filed on magnetic tape. Single Debit payments are identified by combined payment indicator "6" .

  8. A modified Single Debit application is available for states to submit payments for the State Income Tax Levy Program (SITLP) or for Alaska to submit payments for the Alaska Permanent Fund Dividend. These payments are identified by tax type codes ending with L (SITLP) or K (Alaska) and a payment method of "5" .

3.17.277.1.4.2  (01-01-2008)
ACH Credits

  1. ACH credits, also known as "EFTPS Through Your Financial Institution" , are initiated by taxpayers contacting their bank to send payments to EFTPS.

    1. The credit transaction must be initiated at least one banking day before due date. Specific credit deadlines are determined by each financial institution.

    2. The taxpayer's bank assigns a reference number which remains part of the record and becomes the reference number on EFTPS. The bank should also provide this reference number to the taxpayer for an audit trail.

  2. ACH credits are identified by payment method "1" in the second position of the EFT number.

3.17.277.1.4.3  (11-26-2008)
Federal Reserve Electronic Tax Application (FR-ETA) Payments

  1. Taxpayers who require same day settlement for an EFTPS payment may initiate the payment through FR-ETA.

    • Payments must be initiated by 5:00 p.m. Eastern time.

    • The Minneapolis Federal Reserve Bank (FRB) validates the records and sends payment files to the financial agent.

    • Payments for enrolled and non-enrolled taxpayers are sent to Bank of America.

    • The financial agent sends the payment file to ECC - Memphis by 10:30 p.m. on the settlement date.

    • Headquarter (HQ) EFTPS analysts may need to assist the taxpayer to make a same-day payment by providing the following information - To the Taxpayer: To make an electronic same-day Federal Tax deposit, please provide your financial institution with the information outlined in the "Same-Day Federal Tax Payments" guidelines Chapter 10-1 Taxpayer Worksheet Instructions located at: http://www.frbservices.org/files/serviceofferings/pdf/Sameday.pdf . Please type or print clearly. Use the list of Valid IRS Tax Types and Subtypes in EFTPS (following the worksheet) to complete items 5, 7 and 11. You may wish to make photocopies of this blank worksheet for future use. Photocopy the completed worksheet before giving it to your financial institution. To the Taxpayer's Financial Institution: Provide the taxpayer with the most recent procedures outlined in the "Making Same-Day Federal Tax Payments" guidelines Chapter 3-1 Wire Format Instructions located at the same link mentioned above.

    • There are no written procedures for an IMF same-day payment. If a non-enrolled individual taxpayer needs to make a same-day payment, a Headquarters (HQ) EFTPS analyst must alert Minneapolis FR-ETA that an Individual Master File (IMF) same-day payment has been authorized and also provide the last four digits of the payer's Tax Identification Number (TIN), Name Control, exact amount of payment and payment date to Mpls.ETACBAF@mpls.frb.org.

    • If the amount is under $2,000, it will not be cost beneficial for the taxpayer to pay using the same-day method. In such cases, encourage the taxpayer to either pay by check or credit card. See IRM 3.17.277.1.4.6.1.

    • Per Treasury's Financial Manual Volume 1 Part 6 - Chapter 8500, T/L 563, dated April 1996, "...A minimum of two business days notice is required for deposits totaling $50 million or more. If a deposit of $500 million or more is anticipated, a minimum of five business days notice is required." A HQ EFTPS analyst will notify Treasury via phone and send an e-mail to Tom.Mosimann@do.treas.gov.

    • Treasury has also requested that we identify the industry (for disclosure reasons - not the specific taxpayer information) when notifying them of these payments. Examples are: Heavy Manufacturing, Transportation, Retail, Food, Pharmaceuticals, Healthcare, Communications, Technology, Media, Natural Resources, Construction, Financial Services, etc.

  2. FR-ETA payments are identified by payment method "3" in the second position of the EFT number.

  3. The Ogden EFTPS Accounting Unit will access the FR-ETA database or call 1–800–382–0045 for assistance in resolving any problems with FR-ETA payments.

  4. If DSL connectivity is not available, the FR-ETA Customer Service Unit (CSU) will assist IRS Ogden with the transaction inquiry function and research upon IRS request. IRS Ogden has provided FR-ETA with approval to fax unsanitized screen prints of taxpayer data for research purposes.

    1. IRS Ogden faxes an inquiry request, including the Tax ID #, EFT #, dollar amount, and date to the FR-ETA CBAF, Fax 612–204–6162.

    2. FR-ETA faxes screen prints of the Detail Tax Deposit Information from the FR-ETA system, DETAIL TAX DEPOSIT QUERY screen, to the IRS fax, 801–620–6206. This is the only approved method for information to be exchanged between both parties. The only fax numbers to be utilized are the ones mentioned above.

    3. FR-ETA retains the sent fax and screen prints in the IRS Faxes folder in the FR-ETA file cabinet. Faxes are disposed of after 30 days.

    4. If further information is required, IRS Ogden may contact the CSU during regular business hours at 800–382–0045.

3.17.277.1.4.4  (01-01-2009)
Railroad Retirement Board (RRB) Payments

  1. Effective January 2008, railroads are required to submit Federal Tax deposits for forms CT-1 and CT-2 directly through EFTPS. All prior RRB Link users will have been express enrolled in EFTPS based on information provided by U.S. Bank.

  2. Prior to January 2008, payments are identified by payment method "8" in the second position of the EFT number.

  3. Prior to January 2008, railroads sent their federal tax deposits through RRB Link, operated by U.S. Bank (formerly Firstar) . RRB Link would forward payment classification information directly to the Railroad Retirement Board.

3.17.277.1.4.5  (01-01-2009)
FEDTAX Payments

  1. FEDTAX II has provided an electronic payment method for Federal agencies of the United States, while bypassing the banking system. During the first half of 2009, EFTPS will be enhanced to take the place of FEDTAX II. Agencies will be enrolled in EFTPS and will submit their payments through the eftps.gov website which is operated by Bank of America. Federal Agency’s tax payments will continue to be processed through CA$HLINK II only and are driven by ALC numbers.

    1. The EFTPS online statistics report will have the former FEDTAX II rewrite statistics rolled up into it because the system is integrated into the EFTPS infrastructure.

    2. Each payment includes the Agency Location Code (ALC) in the field normally used for the Routing Transit Number.

    3. Call 1–800–829–4933 for assistance in resolving problems with FEDTAX II payments, PIN inquiries or obtaining current contact information for the originating agency.

  2. Federal Agencies may complete the following tasks using EFTPS.gov online:

    • Electronically file Form 941

    • Fill out and print Form 945 and Form CT-1

    • Make payments for Form 941, Form 945, Form CT-1, Form 720 and Form 1042

3.17.277.1.4.6  (01-01-2009)
Credit or Debit Card Payments

  1. Credit or debit card payments are accepted for:

    • Form 1040 - current balance due and current balance due notice

    • Form 1040 - past due taxes, Installment Agreement Payment and Prior Tax Year payments up to 10 years past due

    • Form 1040 Advance payment of determined deficiency

    • Form 1040 - ES (Estimated Tax for Individuals)

    • Form 4868 (Application for Automatic Extension of Time to File US Individual Income Tax Return)

    • Trust Fund Recovery Penalty - Installment Agreement Payment and Prior Tax Year payments up to 10 years past due

    • Form 940 - current balance due, Installment Agreement Payment and Prior Tax Year payments up to 10 years past due

    • Form 941 - current balance due, Installment Agreement Payment and Prior Tax Year payments up to 10 years past due

    • Form 944 - current balance due, prior year, and amended or adjusted return

    • Form 943 - current balance due, prior year, and amended or adjusted return

    • Form 945 - current balance due, prior year, and amended or adjusted return

    • For additional information, such as applicable tax years or processing periods, visit ETA Intranet web site (http://win.web.irs.gov/). See Credit Card and EFW Processing Periods on the EFTPS menu.

  2. ATM/Debit card (VISA or Master Card) payment option is available through the service providers. Pay by phone or Internet using an ATM/Debit card with the NYCE®, STAR®, PULSE® logos or signature debit. There is a convenience fee of $3.95 per payment transaction charged by the service providers. Additionally, there is a maximum tax payment of $1200 when processed through Official Payments Corporation only.

  3. The service provider or software developer transmits the transaction on behalf of the taxpayer and charges a convenience fee which is not reflected in any Treasury revenues.

  4. Credit or debit card payments are identified by a 6 in the second position of the EFT number.

  5. All card payments are processed using modified bulk provider procedures.

    1. The Treasury Financial Agent (TFA) does not maintain any entity records for credit or debit card payments. The name control is provided by the IRS and added to the file by the service provider. The service provider will either add the zip code as provided by the taxpayer during the transaction or as provided by the IRS during the entity validation.

    2. If the Social Security Number (SSN) or Employer Identification Number (EIN) on a credit or debit card payment cannot be validated, the service provider will not forward the payment record to the TFA or the IRS. If any payment within the bulk file cannot be processed, the entire file may be rejected back to the service provider by the TFA to be corrected and resubmitted.

    3. Credit or debit card payments are processed with a payment date matching the date on which the service provider obtained the card authorization. This date is normally 1–3 days earlier than the settlement date. The TFA will process the bulk debit file one business day prior to the settlement date.

3.17.277.1.4.6.1  (01-01-2009)
Credit or Debit Card Pay By Phone and Internet

  1. Two card processors are authorized by IRS to accept payments directly from the taxpayer.

    1. Official Payments Corporation (OPC)

    2. Link2Gov

  2. Taxpayers may initiate a credit card payment through Official Payments Corporation at 1–800–2 PAY TAX (1–800–272–9829) or its web site, OfficialPayments (https://www.officialpayments.com) or Link2Gov at 1–888–PAY1040 (1–888–729–1040) or its web site, Pay1040 (https://www.pay1040.com).

  3. Taxpayers may initiate an ATM/Debit card payment through Official Payments Corporation at 1–800–2 PAY TAX (1–800–272–9829) or its web site, OfficialPayments(https://www.officialpayments.com) or Link2Gov at 1–888–PAY1040 (1–888–729–1040) or its web site, Pay1040 (https://www.pay1040.com).

    1. After processing the card authorization, the service provider sends a "pseudo" enrollment file of SSNs or EINs to the financial agent using the same electronic data interchange (EDI) formats used by bulk providers.

    2. The financial agent sends a modified enrollment validation file to IRS.

    3. For each valid taxpayer identification number (primary social security number or employer identification number), the returned enrollment validation file includes the name control and zip code of the individual or business.

    4. When the enrollment file is returned, the service provider prepares a debit file for all validated TINs, using bulk provider procedures.

  4. If the enrollment is rejected, the service provider reconciles the credit or debit card charges for rejected TINs and notifies the taxpayer of the rejection. No payment records are sent to the financial agent or to IRS.

  5. Reference numbers consist of a 7 - digit confirmation number ending in a "1" for payments made through the Official Payments Corporation or a "3" for payments made through Link2Gov. The complete 7 - digit confirmation number is given to the taxpayer at the time the payment is completed.

  6. Taxpayers may contact Official Payments at 1–877–754–4413, toll free, for assistance resolving credit or debit card payment problems. Taxpayers may contact Link2Gov at 1–888–658–5465, toll free, for assistance resolving credit card payment problems and 1–866–967–3468, toll free, for assistance resolving debit card payment problems.

  7. If other IRS employees need payment verification, please fax payment information to EFTPS Fax # 801–620–6206.

  8. Only EFTPS employees can contact Jocelyn Florence of Official Payments at 1–925–855–5032 or Stephanie Greer of Link2Gov at 1–615–297–2770 x250.

3.17.277.1.4.6.2  (01-01-2008)
Service Provider Payment Inquiries

  1. The service providers will contact the IRS if it is determined that the taxpayer used either the wrong taxpayer identification number (SSN or EIN), tax form, or tax period when making their credit or debit card payment or, the taxpayer wants to verify receipt or location of their payment.

  2. The service providers submit a spreadsheet to the Ogden Electronic Federal Tax Payment System (EFTPS) technician. Each inquiry on the spreadsheet should contain the following information:

    1. Taxpayer’s name

    2. SSN or EIN (TIN) - From the original payment transaction (if original TIN is incorrect, correct).

    3. Tax form - From the original payment transaction (correct tax form, if original tax form is incorrect).

    4. Tax period - From the original payment transaction (correct tax period, if original tax period is incorrect).

    5. Payment amount

    6. Payment date

    7. Resolution/Comments

  3. Research and resolve each card payment inquiry. See IRM 21.5.7.4.7.16.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer, for helpful information. Generally, taxpayers should not receive a refund of the credit or debt card payment. Contact the service provider for clarification of the taxpayer’s request, when necessary (e.g., a credit card payment transfer will overpay the tax module).

  4. In cases where the misapplied card payment results in an erroneous refund, refer to IRM 21.4.5, Erroneous Refunds, for procedures to identify and resolve the issue.

  5. The IRS resolution, for each inquiry, should be notated on the spreadsheet and sent back to the service provider. If we cannot fully comply with the taxpayer’s request (due to offsets, etc.), then only notate that the service provider should advise the taxpayer to contact the IRS at 1-800-829-1040 (individual) or 1-800-829-4933 (business) or correspond with the Ogden campus.

3.17.277.1.4.6.3  (01-01-2008)
Integrated e-File and e-Pay

  1. Software developers and service providers accept and process credit or debit card payments as part of electronic filing.

    • A card authorization is initiated at the same time that the electronic return or form is submitted to IRS for validation.

    • Once the electronic return or form has been accepted, the card processor submits a payment file to the Treasury Financial Agent using the modified bulk provider procedures.

    • If the electronic return is rejected, a payment record is not sent until the return is corrected and subsequently accepted.

  2. The electronic filing declaration control number (DCN) of the return is sent to IRS in the reference number field. The DCN is a 14 - position number starting with "00" .

  3. IRS may call the appropriate IRS center electronic filing coordinator for assistance in resolving integrated e-file and pay card payments. In addition, research may be available using CC TRDBV.

  4. Taxpayers should be advised to call their credit card issuer or tax practitioner for assistance in resolving problems not related to the tax liability.

3.17.277.1.4.7  (01-01-2009)
IRS E–File Electronic Funds Withdrawal

  1. Taxpayers who file their tax returns electronically have the option of initiating an electronic funds withdrawal (ACH debit) to pay a balance due.

    1. Taxpayers wishing to pay by electronic funds withdrawal will include their bank account information within the e-file payment record.

    2. Payment records are routed from the e-file programs to EFTPS for processing as ACH debits.

    3. 1040 series, 4868 and certain business taxpayers are given the option to schedule payments for a future date, as long as the date is on or before the due date of the return. The financial agent will then warehouse the payment request until the scheduled date. (Note: Scheduling does not apply to employment taxes.)

  2. For additional information, such as processing periods, allowable tax types, applicable tax years, etc., please visit:

    1. www.IRS.gov (keyword: e-pay)

    2. http://win.web.irs.gov/ (search Electronic Tax Administration > Statistics > EFTPS)

  3. As electronic returns are processed, each e-file submission processing center creates a control file which is sent to ECC - Memphis and then provided to the financial agent via an electronic mailbox.

    1. The control file will contain the following elements for each payment record: primary TIN, Tax Type Code, Tax Period, Payment Amount, File Creation Date, Originating Submission Processing Center Code, Financial Agent ID, Status, DCN, and EFT Number.

    2. If the payment file is rejected by the financial agent it is returned to the ECC-Memphis electronic mailbox, with the specific reject code noted for the record in error. A System Administrator (SA) then works with National Office staff and/or the e-file submission processing center to get the issue resolved. Once resolved, the SA sends the file back to the financial agent, through the electronic mail box, for processing.

    3. The financial agent will initiate an ACH debit transaction per the taxpayer's request and send ECC - Memphis an acknowledgement file.

  4. The financial agent will include e-file debits, plus any returned payments (transaction indicator 1 or 4) in the regular EFTPS payment files sent to ECC - Memphis.

    1. E-file payment records contain payment method "0" in position 2 of the EFT number and the declaration control number (DCN) of the return in the reference number.

    2. Taxpayers making Electronic Funds Withdrawal (EFW) payments using IRS e-file are not required to be enrolled in EFTPS.

  5. When one or more (up to four allowed) Form 1040-ES payments are made, IRS automatically enrolls a taxpayer in EFTPS (if not already enrolled and entity information is validated) and mails them a 1040-ES PIN Letter Package. A taxpayer does not have to use EFTPS. IRS offers this option in case a taxpayer either has to cancel one or more 1040 ES payments (made via EFW) and/or has additional ES payments to make. For more information on this, taxpayers should call 1-800-316-6541.

  6. Research may be available using CC TRDBV.

  7. Taxpayer inquiries regarding e-file Electronic Funds Withdrawals (including any letters they receive regarding EFW payments) may also be directed to the E-File Inquiry and Cancellation Service, 1–888–353–4537.

3.17.277.1.4.8  (01-01-2009)
Federal Payment Levy Program (FPLP)

  1. EFTPS receives levy payments from the FMS Treasury Offset Program (TOP).

    1. IRS Compliance sends a weekly file of delinquent taxpayers to the Financial Management Service to be matched against Federal disbursement files.

    2. When a match is found, IRS issues a levy notice, advising the taxpayer that 15 percent of future disbursements will be seized to satisfy the delinquent tax account.

    3. If the taxpayer has not made arrangements with IRS to settle the debt, FMS will begin levying the payments after 30 days (60 days for Social Security).

    4. FMS creates a payment file in the TOP format, and sends the file to the ECC - Martinsburg.

    5. The money is transferred to IRS using the Intra-governmental Payments and Collections System (IPAC). The money is not reported on CA$HLINK.

    6. The EFTPS deposit tickets are identified by a "C" in the first position of the deposit ticket number. Debit vouchers have a "D" in the first position.

    7. ECC - Martinsburg reformats the TOP file, using a record from IPAC to verify the money, and creates a file in the EFTPS format for processing in ECC - Memphis.

    8. ECC - Memphis processes the TOP file as its own financial agent (FA03 - "3" in position 1 of the EFT number).

  2. All of the reject conditions that are performed during EFTPS load and validate are included in the ECC - Martinsburg conversion program.

    1. If any reject conditions are identified in ECC - Memphis, the EFTPS system should work with ECC - Martinsburg to correct the invalid condition and/or reject the file back to FMS.

    2. If any file must be rejected back to FMS, Revenue Accounting should reverse the IPAC bill and related journal to send the money back to FMS.

  3. Contact Field Compliance Services to resolve any problems with unresolved levy payments. To identify the source of the payment, contact the TOP call center at FMS at 800–304–3107 Monday - Friday 7:30 AM - 5:00 PM Central Standard Time or refer to IRM 5.11.7, Automated Levy Programs.

  4. Federal Payment Levy Program payments contain "39" in the first two positions of the EFT number.

3.17.277.1.4.9  (01-01-2008)
Online

  1. www.eftps.gov offers the following features over a secure SSL connection:

    • General information about EFTPS

    • EFTPS enrollment

    • ACH debit payments

    • Payment cancellation

    • Payment history research for up to 16 months; search, print, or download history by date, tax type, amount, tax form, and other factors

    • Schedule up to four estimated tax payments at once

    • Compliant with Sec. 508 (accessibility) standards

    • Access via direct links to states with electronic tax payment systems

  2. EFTPS payments made through the web site are processed by the financial agents like any other ACH debits, and will be identified by Payment Method "7" .

  3. Participants need both a PIN and Password to access the secure areas of the site.

3.17.277.1.4.10  (07-01-2005)
Bureau of Alcohol, Tobacco and Firearms (ATF) Payments

  1. On rare occasions, the Bureau of Alcohol, Tobacco, and Firearms (ATF) may contact EFTPS regarding ATF payments that have already been sent to the IRS in error. A manual refund should not be done on these payments. They need to be transferred to ATF by IPAC, located in The Interim Revenue Accounting Control System (IRACS). That way, the taxpayer will get credit from when the payment was originally made. When this occurs:

    1. Fill out Form 2424. Indicate in the right hand margin in red ink "1 - EFTPS PAYMENT" .

    2. Debit the taxpayer's account

    3. Credit the 4970 Account to be transferred to ATF by IPAC.

    4. In the explanation section of Form 2424, indicate "EFTPS Payment and the ATF Agency Location Code 2010 0003" . Ensure TXMOD print and e-mail or fax from ATF is attached to Form 2424 for audit trail purposes. This transfers money out of the 4970 Account to ATF by IPAC.

    5. Take documentation to IRACS, who will take to Direct Data Entry (DDE) to input TC652. Many of these are done erroneously as TC651.

3.17.277.1.4.11  (01-01-2009)
Electronic Bill Payment (EBP) System

  1. Electronic Bill Paying (EBP) can be identified by Position 2, Payment Method "1" and Position 3, Combined Payment Indicator "3" in the EFT#.

    1. The services that currently utilize this application at this time are identified in positions 8 and 9 of the EFT# as "01" for Checkfree, "02" for Household, and "03" for other.

    2. Any problems encountered with EBP regarding an invalid TIN, Ryhan Clanton at First Data Corporation (303-967-5807) should be contacted to provide additional taxpayer information.

3.17.277.1.4.12  (01-01-2009)
State Income Tax Levy Program (SITLP)

  1. Since August 2004, seven states are registered and participating in the EFTPS Single-Debit Method offered for SITLP participants. In September 2007, EFTPS rolled out an additional option, the ACH Credit option, to states participating in SITLP. Several states are in development for the ACH Credit option, and several more have shown an interest.

    1. States that participate in SITLP have the option to electronically transmit payment files to the Treasury on behalf of qualified recipients of a state refund that owe a Federal obligation.

    2. A Single-Debit application allows states to make multiple payments through one electronic transmission and generate a single debit from the state's account. This method eliminates the paper check and listing process currently in place.

    3. The ACH Credit option allows states to submit ACH Credit payment transactions on behalf of taxpayers that have had a state refund levied by IRS. The state's financial institution submits the ACH Credits to the Federal Reserve Bank (FRB). FRB sends the ACH Credits to EFTPS. EFTPS forwards the tax payment posting detail to IRS.

    4. For more information, see the EFTPS Single Debit Guide and the SITLP ACH Credit User Guide, both of which can be obtained from the Electronic Payment Section of the Tax Payment Management Branch.

3.17.277.1.4.13  (01-01-2009)
Social Security Administration (SSA) Levy Program

  1. Social Security Administration (SSA) has entered into an agreement with the IRS to honor requests for levies on taxpayers who owe a Federal liability and receive SSA benefits.

    1. Payments are made using the Intra-government Payments and Collection System (IPAC).

    2. SSA deposit tickets are identified with an "E" and debit vouchers are identified with an "F" in the first position of the ticket number.

    3. The FA ID number (first position of the EFT number) is " 4" .

    4. SSA Levy payments can be identified by an EFT number beginning with "491"

    5. IRS employees with SSA Levy questions or individual taxpayer issues should refer to SERP (Who/Where tab). Scroll down to SSA Paper Levy Contacts.

    6. IRS employees with systemic related IRS Collection SSA Levy ONLY problems should contact Michelle Alvarado, 480–503–7291. This information is for internal use only

3.17.277.1.4.14  (01-01-2009)
Direct Debit Installment Agreement (DDIA)

  1. This program collects and processes Direct Debit Installment Agreement payments for taxpayers who have entered into an Installment Agreement with IRS. Files are provided by Collection to the TFA, Bank of America. Individual taxpayer accounts are debited for amount indicated and payment posting information is returned to the IRS.

    • These taxpayers do not have to be enrolled in EFTPS.

    • DDIA payments will be identified by the EFT number beginning with "221" and "02" in positions 8 and 9.

3.17.277.1.4.15  (01-01-2009)
Remittance Strategy for Paper Check Conversion (RS-PCC)

  1. This program is the process of converting paper checks into electronic ACH (Automated Clearing House) Debits. All paper checks will be converted into electronic transaction at the point when they are received. RS-PCC will interfaced with EFTPS to post taxpayer payment information to masterfile. Insolvency check payments, Offer in Comprise payments and tax payments received at the Philadelphia, Memphis and Brookhaven Campuses are scanned; taxpayer accounts are debited by FRB-Cleveland; and the posting information is sent to EFTPS for account posting.

    • The financial agent designation for RS-PCC will be "5" (first position of the EFT number).

    • RS-PCC payments can be identified by an EFT number beginning with "520" (0 indicates Campus).

  2. Two additional phases of RS-PCC will begin in subsequent years that will allow all other campus, Taxpayers Assistance Centers (TAC) and Revenue Officer) payments to be processed.

3.17.277.2  (01-01-2008)
EFTPS Log in Procedures

  1. Once the workstation and monitor are powered up, a Log in menu appears on the screen. EFTPS login procedures are the same for all users. The security measures are also the same for all users including the number of login attempts and the periodic expiration of passwords. Each user must have a Workstation Login ID and password and an EFTPS Login ID and password in order to access EFTPS.

  2. Enter your User Name at the prompt and press the [TAB] key.

  3. Enter your Workstation Password at the prompt. For security reasons, your password is not displayed as it is entered.

  4. Use one of the following options to transmit a Login:

    1. Move the mouse until the pointer is on the LOGIN button and press the left mouse key; or

    2. Press [TAB].

  5. If a successful login attempt is made, windows software begins running and windows options are displayed.

    1. Use the mouse to move the screen cursor to the EFTPS icon.

    2. Press the left key on the mouse twice.

    3. The EFTPS Login prompt appears.

  6. Enter your User ID at the prompt and press [TAB].

  7. Enter your EFTPS Password at the prompt and press [TAB].

    1. If there is an error in the EFTPS password, an error message appears to inform the user of the error. The Login must be reentered at this prompt, followed by the [TAB] key.

    2. The Password prompt appears below the Login prompt. Enter the EFTPS password at this prompt and press the [ENTER] key.

  8. Once a successful EFTPS password is entered, the EFTPS screen is shown below. See Figure 3.17.277-1.

    Figure 3.17.277-1

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    EFTPS Command Code screen

    1. Press [ENTER] or use the mouse to move the screen pointer to the Continue Box and press the left key on the mouse once to access the EFTPS Main Menu.

    2. To exit EFTPS, use the mouse to move the screen pointer to the Exit Box and press the left key on the mouse once.

3.17.277.2.1  (01-01-2008)
Selecting Work Functions

  1. After the EFTPS Title Window closes, the EFTPS Main Menu opens as shown. See Figure 3.17.277-2.

    Figure 3.17.277-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    EFTPS Command Code main menu

  2. The Main Menu is a dynamic menu. This means the number of items in the options list may vary from operator to operator. The number of options available is determined by the EFTPS supervisor for each user profile.

  3. To select one of the menu options using the mouse:

    1. Move the mouse so the screen cursor is on the selected option.

    2. Press the left key on the mouse once. A black bar is now shading the option selected.

    3. If a different option is preferred, perform steps 1 and 2 once more.

    4. After verifying that the option selected is shaded by the black bar, press the left key on the mouse twice.

    5. The EFTPS Main Menu closes, and the window for the chosen function opens. Each Main Menu function is discussed in the subsequent chapters.

  4. To select one of the menu options using the keyboard:

    1. Use the [Up–Arrow] and/or [Down–Arrow] keys until the selected option is surrounded by a dotted line.

    2. Press the [ENTER] key.

3.17.277.2.2  (01-01-2008)
EFTPS Log Off

  1. The recommended way to log off EFTPS is to exit from whatever window you are in, then selecting the Exit option from the EFTPS Main Menu.

3.17.277.2.3  (01-01-2008)
EFTPS Security

  1. EFTPS operators are assigned a password by the EFTPS Administrator. Perform the following steps to change your password at any time (note: this option will only work for those that have been granted permission to change their password).

    1. From the EFTPS Main Menu, select EFTPS Security ( See Figure 3.17.277-3.)

      Figure 3.17.277-3

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      EFTPS Command Code main menu screen

    2. Use the mouse to move the pointer to EFTPS Security and double click the left mouse button, or use the <UP> and <DOWN> arrow keys on the keyboard to highlight EFTPS Security and press [ENTER]. The EFTPS Security Menu appears. See Figure 3.17.277-4.

      Figure 3.17.277-4

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      EFTPS Command Code Security menu screen

    3. Use the mouse to move the pointer to Change EFTPS User Password and double click the left mouse button, or use the <UP> and <DOWN> arrow keys on the keyboard to highlight Change EFTPS User Password and press [ENTER].

    4. A screen prompt appears as in the example below:

      Passwd: changing password for (user name)
      Old password:

    5. Enter your current password at the Old password prompt and press [ENTER]. A new screen prompt appears which states:

      Enter new password:
      Reenter new password:

    6. Enter the new password at the prompt and press [ENTER].

      Note:

      Each password must have at least eight characters. There must be at least two alphabetic characters and at least one numeric or special character. When changing passwords, at least three characters in the new password must differ from the old password.

    7. Re-Enter the new password at the Reenter prompt and press [ENTER].

    8. If the two passwords are not identical, steps 6. and 7. must be repeated.

    9. When a successful password is entered, you will be returned to the EFTPS Security Menu.

  2. To exit the Change Password screen without changing your password and return to the EFTPS Security Menu:

    1. If an entry was made, press [DELETE].

    2. If no entry was made, press [ENTER].

3.17.277.2.4  (01-01-2008)
Research Request Help Menu

  1. To access the Help Menu from the Research Request Screen:

    1. Use the mouse to place the pointer on HELP and click once. Using the keyboard, press <ALT H>

    2. A pull-down menu will appear with the following applications: Context; Overview; Key; and Version.

3.17.277.2.4.1  (01-01-2008)
Context Help

  1. To view the messages for the Context Help application:

    1. Use the mouse to place the pointer on Context Help and click once. Using the keyboard, press the underlined letter C.

    2. The cursor will be transformed into a question mark. Move the cursor to the field and click once. A pop-up window will display information about the field.

    3. To view additional information, use the mouse to place the pointer on the scroll bar located on the right side of the pop-up window. Move the slider in the appropriate direction.

    4. After viewing the information, use the mouse to place the pointer on "OK" and click once to exit. Using the keyboard, press the [TAB] key to activate the keyboard focus on "OK" and press [ENTER].

3.17.277.2.4.2  (01-01-2008)
Overview Help

  1. To view the messages for the Overview application:

    1. Use the mouse to place the pointer on Overview and click once. Using the keyboard, press the underlined letter "O" . A pop-up window will display information about the Research Screen.

    2. To view additional information, use the mouse to place the pointer on the scroll bar located on the right side of the pop-up window. Move the slider in the appropriate direction.

    3. After viewing the information, use the mouse to place the pointer on "OK" and click once to exit. Using the keyboard, press the [TAB] key to activate the keyboard focus on "OK" and press [ENTER].

3.17.277.2.4.3  (01-01-2008)
Research Keyboard Help

  1. To view the messages for the Research Keyboard application:

    1. Use the mouse to place the pointer on Research Keyboard and click once. Using the keyboard, press the underlined letter "K" . A pop-up window will display information about the Description of Keys.

    2. To view additional information, use the mouse to place the pointer on the scroll bar located on the right side on the pop-up window. Move the slider in the appropriate direction.

    3. After viewing the information, use the mouse to place the pointer on "OK" and click once to exit. Using the keyboard, press the [TAB] key to activate the keyboard focus on "OK" and press [ENTER].

3.17.277.2.4.4  (01-01-2008)
Version Information Help

  1. To view the messages for the Version Information application:

    1. Use the mouse to place the pointer on Version Information and click once. Using the keyboard, press the underlined letter "P" . A pop-up window will display information about the Research Screen Information.

    2. To view additional information, use the mouse to place the pointer on the scroll bar located on the right side of the pop-up window. Move the slider in the appropriate direction.

    3. After viewing the information, use the mouse to place the pointer on "OK" and click once to exit. Using the keyboard, press the [TAB] key to activate the keyboard focus on "OK" and press [ENTER].

3.17.277.3  (01-01-2009)
Enrollment Procedures

  1. Refer all taxpayers who are required or volunteering to participate in EFTPS to www.eftps.gov to obtain enrollment information. If internet access is not available then refer them to EFTPS Customer Service at 1–800–555–4477 (business) or 1–800–316–6541 (Individual). Taxpayers should be encouraged to enroll online at www.eftps.gov.

  2. Enrollment forms should be mailed to EFTPS Enrollment Processing Center, P.O. Box 173788, Denver, CO 80217–3788. Taxpayers should be encouraged to enroll online at www.eftps.gov

  3. The financial agent forwards the taxpayer entity data to ECC - Memphis via electronic transmission. The following information is included on the incoming enrollment request file:

    • TIN (and EIN/SSN indicator)

    • Secondary Social Security Number (for joint IMF filers)

    • Name

    • Address

    • City

    • State

    • Zip Code

  4. Enrollment validation for ACH debits is not complete until the financial agent has used the standard ACH prenote testing to verify taxpayer bank account data.

  5. "Express Enrollment" is used for all new businesses with a Federal Tax Deposit (FTD) requirement. Upon applying for an Employer Identification Number (EIN) via Form SS-4, the taxpayer is automatically enrolled in EFTPS. Enrollment information regarding EFTPS is sent to the taxpayer and the business is notified that activation is required before payments can be made.

  6. Express Enrollment is used for a percentage of existing businesses through the FTD coupon reorder program. EFTPS Enrollment Activation information is sent to these businesses in place of a new coupon book.

3.17.277.3.1  (01-01-2008)
Entity Validation of EFTPS Enrollment Requests

  1. The TINs on the enrollment request are matched to the Entity Data on the Corporate Files On-Line (CFOL) at ECC - Martinsburg using command code EFTEA. This process is transparent to the EFTPS Accounting Function.

  2. Command Code EFTEA is generated from EFTPS programs and cannot be input manually. The taxpayer's name and TIN are verified against the master file.

    If Then
    a matching TIN is found on CFOL, The taxpayer's Name Control, address, fiscal year month, filing requirements Business Master File (BMF), and filing status (IMF) are returned to EFTPS.
    no matching TIN is found on CFOL, A second check is made against the TIF files for a matching pending transaction, using command code EFTIA (for BMF entities only). If found, the same information is sent to EFTPS.
    the name control from CFOL or TIF matches the name from the financial agent, The taxpayer's Name Control, address, fiscal year month, filing requirements (BMF), and filing status (IMF) are sent to the financial agent coded for approval.
    the name and name control are a proximal match, The record is processed as approved.

    Note:

    A proximal match is any four consecutive non-blank characters in the first name line which match the name control on the master file. A second proximal match ignores special characters and attempts to match on alpha and numeric characters only.
    No match is found 1. The enrollment request is rejected.
    2. The financial agent will notify the taxpayer of the reason for rejection.
    3. The taxpayer or the financial agent must submit a corrected enrollment request.

3.17.277.3.2  (01-01-2008)
Enrollment Discrepancy Codes

  1. Enrollment records are returned to the financial agent with the following discrepancy codes:

    Discrepancy Code Accepted Enrollments Meaning/Description
    Code 0 The TIN and name match
    Code 1 The primary and secondary TIN on the enrollment are reversed on the master file
    Code 2 The primary and secondary TIN's are reversed. The names may mismatch but are determined to be correct
    Code 4 The names mismatch but are determined to be correct. The name control from CFOL or TIF matches any four consecutive non-blank characters on the name line

    Discrepancy Code Rejected Enrollments Meaning/Description
    Code 3 Primary and secondary TIN's reversed and the name does not match
    Code 5 The TIN does not match an existing TIN on CFOL or TIF
    Code 6 Name mismatch - The name control received from CFOL or TIF does not match any four consecutive characters on the name line
    Code 7 Secondary SSN mismatch and name mismatch - Financial agent will receive the matching name from the master file and verify that it is correct.
    Code 8 Secondary SSN and name mismatch but determined to be correct primary taxpayer
    Code 9 Secondary SSN mismatch and name mismatch

3.17.277.3.3  (01-01-2008)
Resolution of Rejected Enrollments

  1. Taxpayers who need assistance in resolving rejected enrollments are normally referred to the IRS e-help desk at 1–866–255–0654 (EFTPS is option #3).

  2. Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1. Fax procedures contained in IRM 11.3.1.10 must be reviewed prior to faxing confidential information to the taxpayer.

    1. Use command code RFINQ to verify that a business taxpayer is represented by the agent on the Reporting Agent File or ask the agent to fax a copy of Form 8655 (or approved substitute).

    2. Use command code CFINQ to validate a agent's power of attorney, or ask for a fax copy of Form 2848 or substitute.

    3. The EFTPS Batch Provider software includes a feature that requires a third party to initiate an electronic disclosure authorization for individuals within the software. The Form 9783T, EFTPS Individual Enrollment with Third Party Authorization, will be provided to taxpayers by their authorized Third Party. The form is available within the EFTPS Batch Provider software only and will be generated at the completion of the enrollment. The signed form will be retained by the third party. For authentication purposes, the electronic authorization requires the taxpayer's 5-Digit self-selected Signature PIN, Date of Birth and Prior Year Adjusted Gross Income. This disclosure authorization will be stored by the FA. If needed, ask for a fax copy of Form 9783T. Note, if the individual has a Form 2848, Power of Attorney, on file with the third party, no other authorization is required.

  3. The e-Help researches the taxpayer's account to determine the cause of the reject.

  4. Following are some of the more common reasons for enrollments to be rejected and suggested resolutions:

    IF… THEN
    The taxpayer has used a business name rather than the legal name (if a sole proprietor, the legal name is normally the individual’s name). Ask the taxpayer to resubmit the enrollment using the correct name on the Confirmation/Update form provided by BOA or re-enroll with a new enrollment via the Web. There MUST be a change to the information before EFTPS will trigger a re-entity validation check with IRS, i.e. business or individual name. If there is no change, the enrollment on EFTPS will remain in reject status. EFTPS normally processes paper Confirmation/Update forms within 3 days of receipt.
    The name is spelled wrong on IDRS or if IRS records contain a misspelled name, the taxpayer should be asked to enroll using the misspelled name to expedite the enrollment process. Have the caller fax a request to correct the spelling on the account to the IRS Entity Department. Have BMF callers fax the request on Company Letterhead. When the name is corrected, EFTPS records will be automatically updated. Fax Numbers: BMF 801-620-7116 or 859-669-5748 IMF: 816-823-9339
    A name change is pending on IDRS, it may take two weeks or longer for a name change to post to the master file after it has been input on IDRS. Ask the taxpayer to wait and resubmit the enrollment in one month.
    Some EINs have aged off the master file due to lack of usage. These EINs may be reestablished by the Entity unit. The caller can contact the Business and Specialty phoneline @ 800-829-4933.
    There are other problems, such as changes to the business structure or account merges. These EINs should be referred to entity control for resolution by calling the Business and Specialty phoneline @ 800-829-4933.
    Internet "20" and "26" EINs are not complete. Taxpayer’s on-line Form SS-4 was incomplete. Refer caller to the Business and Specialty phoneline @ 800-829-4933. They will be able to let them know what information is needed to issue the EIN. Encourage taxpayer to wait a minimum of two weeks before making an EFTPS payment before using IEIN so it has time to post to master file.
    Taxpayer calls and indicates that he is unable to input TIN with a "P" on the EFTPS Web. If IDRS shows there is a TIN with a "P" and the taxpayer is trying to make an EFTPS payment, inform the taxpayer that only numbers are allowed in the TIN field on EFTPS. Refer taxpayer to Business and Specialty phoneline @ 800-829-4933 to assist them in determining proper TIN to use or if new TIN needs to be established.
    IRS records are wrong and taxpayer wants to correct IRS records before enrolling with EFTPS over the phone instead of using the Confirmation/Update form. To correct IRS records have caller fax the corrections to IRS. Businesses must include Articles of Amendment from the State along with their request. Fax Numbers for BMF: 801-620-7116 or 859-669-5748 Fax Number for IMF: 816-823-9339 The updates will take 3 to 5 weeks before they can re-enroll to EFTPS. At that time the taxpayer may resubmit a web enrollment using the correct name. Enrollment changes cannot be made by EFTPS over the phone.
    IRS records are right and taxpayer wants to make the changes to EFTPS over the phone instead of using the Confirmation/Update form. Ask the taxpayer to notate changes on Confirmation/Update form and return form to EFTPS-Denver so changes can be made to that database or re-enroll with a new enrollment via the Web.
    Taxpayer wants to fax the Confirmation/Update form to EFTPS-Denver. Advise the taxpayer that faxes are not allowed to EFTPS-Denver.
    Taxpayer indicates they do not have a Confirmation/Update form. Have the caller re-enroll with a new enrollment via the Web. For a new enrollment to trigger a re-entity validation check with IRS, there must be a change to the information i.e. business or individual name changes from the information they originally used with their first enrollment. If there is no change, the enrollment on EFTPS will remain in reject status.

  5. Other problems, such as changes to the business structure or account merges, should be referred to entity control for resolution.

3.17.277.3.4  (01-01-2008)
Enrollment Status on Master File

  1. Each successful enrollment generates a transaction code 971 on the master file to show that the taxpayer is enrolled in EFTPS, with an Action Code indicating the financial agent. The generated TC 971 will include a DLN of 81977–777–77777. For taxpayers enrolled with Bank of America, the TC 971 action code is 085, and the Enrollment Code is 85.

  2. On rare occasions, it may be necessary to input the enrollment code manually. The enrollment code may have dropped off the master file due to an account merge, while the taxpayer is still enrolled in EFTPS.

    1. Use command code FRM77 to input the TC 971 with action 085 for Bank of America. Enter the transaction date of the original enrollment.

    2. FRM77 can also be used to delete the enrollment code from the master file with TC972 and action code 084 or 085.

    3. Refer to IRM 2.4.19 for specific command code instructions.

  3. The enrollment code is important because the master file uses this code to select name, address, and filing requirement changes for the weekly entity update file sent to the financial agent.

  4. If the taxpayer has expressed a desire to prenote, enrollment validation for ACH debits is not complete until the financial agent has used the standard ACH prenote testing to verify taxpayer bank account data.

3.17.277.3.5  (01-01-2008)
Confirming EFTPS Electronic Payment Was Received by IRS

  1. Taxpayers who want confirmation that an EFTPS payment was received by the IRS should call the IRS e-help desk at 1-866-255-0654 (EFTPS is option #3). A successful EFTPS payment will post to the EFTPS database the following day and can be researched using CC EFTPS.

    • Use CC EFTPS with definer "T" to research the database using the identification number (TIN), payment date and payment amount.

    • Use CC EFTPS with definer E to research the database using the EFT number.

    • Use CC EFTPS with definer R to research the database using the reference number and payment year. The reference number may be used when payment was made with a credit card.

    • Other questions regarding payments that have posted to MasterFile should be referred to the IRS Customer Service Business and Specialty Tax Line at 1-800-829-4933 or IRS IMF Customer Service at 1-800-829-1040.

  2. Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See Taxpayer Authentication guidelines in IRM 21.1.3. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1. Fax procedures are contained in IRM 11.3.1.10 must be reviewed prior to faxing confidential information to the taxpayer.

3.17.277.4  (01-01-2009)
EFTPS Transmission Files

  1. The Financial Agent will transmit EFTPS transaction data to ECC - Memphis at least once each business day. In a normal schedule, the financial agent will send files four times each day by (Central Time):

    • 11:00 a.m.

    • 3:00 p.m.

    • 6:00 p.m.

    • 8:00 p.m.

3.17.277.4.1  (01-01-2008)
Transmission Format

  1. Each transmission will consist of the following:

    Record Type Number of
    Records     		Required Information
    Transmission Header Record One Count of deposit tickets, debit vouchers, and batches
    Deposit Ticket Summary Record One or more One record for each deposit ticket or debit voucher included in the transmission. Each deposit ticket may contain up to 9,999 batches of 5,000 transactions. Each deposit ticket or debit voucher may contain only one routing transit number and settlement date.
    Deposit Ticket Detail Record One or more One detail record for each batch of transactions associated with the deposit ticket or debit voucher.
    Batch Header Record One for each DT Detail Record Batches are sorted by master file type and may contain up to 5,000 transactions. Sequentially, the Batch Header Record immediately follows the Deposit Ticket Detail Record.
    Payment Detail Record One or more One for each payment or debit transaction
    Batch Trailer Record 1 One for each batch Count summary by tax class and total for each batch
    Batch Trailer Record 2 One for each batch Amount totals for each batch
    End of Day Record One or none Present only on the last transmission prior to 5:30 p.m. central time and on the last transmission of the day. It provides the total count and amount for the transmission date.

3.17.277.4.2  (01-01-2009)
Financial Agent Rejects

  1. Each transmission from a financial agent is validated to ensure that the file is balanced and that the records do not contain invalid data.

  2. Any transmission, deposit ticket/debit voucher, batch, or enrollment file that fails a system validity check is identified on the Load and Validate Log. Rejects are shown on the Financial Agent Reject Report (CMS 1). See Exhibit 3.17.277-3.

    1. The financial agent should be immediately contacted at (303) 488–8700 with the details of the reject. Normally the contact will be initiated by EFTPS System Administrator.

    2. The financial agent should correct and retransmit the rejected records within four hours.

    3. For any reject from the Treasury Offset Program (financial agent 03), the EFTPS system administrator should coordinate with ECC - Martinsburg before notifying FMS of the reject condition. The invalid condition may have been caused by an error in the conversion run.

  3. There are four types of financial agent rejects:

    • Transmission rejects

    • Deposit ticket rejects

    • Batch rejects

    • Enrollment rejects

3.17.277.4.2.1  (01-01-2008)
Transmission Rejects

  1. Following is a list of the reject codes for transmission rejects. The entire transmission is rejected and must be resubmitted by the financial agent.

    Reject Code Condition Description
    T 01 Invalid financial agent number The FA number in the Transmission Header Record is other than 02, 03, 04, 05 or does not match the agent number in the Deposit Ticket Summary Record or the first 2 positions of any associated batch number.
    T 02 Invalid Computing Center Code Must be 01 for ECC - Memphis
    T 03 Invalid Transmission Number Must be 01 - 99
    T 04 Duplicate transmission number Must not match previous transmission number for same financial agent and date
    T 05 Invalid transmission date Transmission date not in valid YYYYMMDD format or greater than current date
    T 06 Invalid deposit ticket count Deposit ticket count in the Transmission Header Record is not equal to the count of Deposit Ticket Summary Records with record type 7 (deposit ticket).
    T 07 Invalid debit voucher count Debit voucher count in the Transmission Header Record is not equal to the count of Deposit Ticket Summary Records with record type 8 (debit voucher).
    T 08 Invalid batch count The batch count in the Transmission Header Record is not equal to the number of Batch Header Records in the transmission.
    T 09 Invalid record sequence The records in a transmission are not in a valid sequence or the records are the wrong length. (See table below.)
    T 10 Out of Sequence Transmission Transmissions from the financial agent must be in sequence, starting with 01 for each transmission date. An out of sequence transmission is held without processing until the transmission(s) with intervening sequence numbers are received and processed. If the transmission still cannot be processed when the first transmission is received for the following day, the out of sequence transmission is rejected.

3.17.277.4.2.1.1  (11-26-2008)
Transmission Reject Code 9

  1. Records are in an invalid sequence (Reject Code T 09) for any of the following conditions:

    Record Type Sequence
    Transmission Header Record This record must be present at the beginning of a transmission. This record must be followed by a Deposit Ticket Summary Record or End of Day Record. Exception: If resubmitting of a rejected batch, the next record must be a Deposit Ticket Detail Record.
    Deposit Ticket Summary Record All records that follow are assumed to be part of this deposit ticket until another Deposit Ticket Summary Record occurs. This record must be followed by a Deposit Ticket Detail Record.
    Deposit Ticket Detail Record This record must be followed by a Batch Header Record.
    Batch Header Record All Payment Detail Records that immediately follow are assumed to be part of this batch. This record must be followed by a Payment Detail Record.
    Payment Detail Record This record must be followed by another Payment Detail Record or a Batch Trailer Record 1.
    Batch Trailer Record 1 This record must be followed by Batch Trailer Record 2.
    Batch Trailer Record 2 This record must end a transmission or be followed by a Deposit Ticket Detail Record, Deposit Ticket Summary Record, or End of Day Record.
    End of Day Record This record can only end a transmission.

3.17.277.4.2.2  (01-01-2009)
Deposit Ticket Rejects

  1. Following is a list of the reject codes for deposit ticket rejects. The financial agent must resubmit the deposit ticket or debit voucher and all associated batches and transactions.

    Reject Code Condition Description
    D 01 Invalid deposit ticket number The deposit ticket/debit voucher number on the Deposit Ticket Summary Record is not numeric, or the first position of the deposit ticket number is other than 1 - 9, or the first position of the debit voucher number is other than 0. For Federal Payment Levy Program payments, the deposit ticket number must be "C" for payments or "D" for reversals, followed by five numerics. For SSA Levy payments, the deposit tickets are identified with an "E" and the debit voucher is identified with an "F" in the first position of the ticket number. Both are followed by a five digit number.
    D 02 Duplicate deposit ticket/ debit voucher number The same voucher number from the same financial agent for the same settlement date
    D 03 Unmatched deposit ticket/ debit voucher number The DT/DV number on the Deposit Ticket Summary Record must match the voucher number on all associated Deposit Ticket Detail Records and Batch Header Records.
    D 04 Invalid settlement date The deposit ticket settlement date:
    • Must be a valid YYYYMMDD date.
    • Cannot be a Saturday, Sunday, or legal holiday.
    • Must not be more than ten business days prior to the current system date. Exception: This check is bypassed for bulk provider emergency payments with RTN 021030004.
    • Must not be later than the current system date.
    • Must match the settlement date in all associated Batch Header Records.
    D 05 Invalid tax class amounts Sum of the tax class amounts on Deposit Ticket Summary Record does not equal the total Amount on the same record.
    D 06 Unmatched DT summary and detail amounts The total Amount on the Deposit Ticket Summary Record does not equal the sum of the amounts on the associated Deposit Ticket Detail Records.
    D 07 Unmatched batch count The Deposit Ticket Summary Record batch count does not equal the number of associated Deposit Ticket Detail Records.
    D 08 Invalid RTN The Routing Transit Number (RTN)on the Deposit Ticket Summary Record is not valid for the financial agent. The valid RTNs are:
        Bank of America: 061036013, 061036000, 091036177,
        111000012 (FEDTAX) — Payment method must be "9" (government)
        061036084 (RRB Link )
        Both Financial Agents (FR-ETA): 091036164, 091000080,
        021030004 (Emergency bulk provider)
        Federal Payment Levy Program: 20180032 - First two positions of EFT number must be "39" .
        SSA Levy Program 28040001 - First three positions of EFT number must be "491" .
    D 09 Invalid ALC Ogden ALC 20092900
    D 10 Invalid tax class 9 amount The amount reported as tax class 9 on the Deposit Ticket Summary Record is not equal to the sum of the associated Deposit Ticket Detail Record Amounts for batches with Master File Type 7.

    * - prior to July 1, 2005

3.17.277.4.2.3  (01-01-2008)
Batch Rejects

  1. Following is a list of batch reject codes. The financial agent must resubmit the batch header and all associated transactions.

    Reject Code Condition Description
    B 01 Invalid batch number The batch number in the Batch Header Record is:
    • Non-numeric
    • For resubmitted batches, the first 2 positions of the batch number not equal to the financial agent number in the Transmission Header Record
    • The 3rd position is not equal to the 4th position of the Transmission Header Record transmission date
    • Positions 4 - 6 not equal to 001 - 366 or 401 - 766.
    B 02 Unmatched resubmitted batch A re-submission of a rejected batch fails to match the voucher number and money amount of a rejected original batch. Unless the original batch was rejected for invalid batch number, the resubmitted batch must also match on batch number.
    B 03 Duplicate batch number The batch number in the Batch Header Record is equal to a batch number that has already been processed.
    B 04 Invalid batch control date The batch control date on the Batch Header Record is not in a valid YYYYMMDD format.
    B 05 Invalid settlement date The settlement date on the Batch Header Record is an earlier date than the payment date on any associated Payment Detail Record.
    B 06 Invalid EFT number The batch is rejected if the EFT number matches the EFT number of any payment that has previously been processed or if any transaction in the batch is other than:
    Position 1 must equal the 2nd position of the Batch Header Record batch number.
    Position 2 must be numeric
    Position 3 must equal 0 - 9
    Positions 4 - 7 must equal the year digit/julian date (or julian date + 400) of the Batch Header settlement date
    Positions 8 - 15 must be numeric
    B 07 Invalid transaction amount The transaction amount on a Payment Detail Record is zero or non-numeric.
    B 08 Invalid transaction indicator The Transaction Indicator is invalid if it is:
    (a) Other than 0, 1, 4, 8, 9, A, B or R.
    (b) Indicator 1, 4, 9, A or B and the reference number is not present.
    (c) Indicator R with the second position of the EFT number other than 1, 3 or 4.
    (d) Included in the same batch with an incompatible indicator. The transaction indicators that may be combined in a batch are:
    • Indicators 1 and 4
    • Indicators 8 and B
    • Indicators 9, A and R
    Exception: For re-submission of a rejected batch, transaction indicator 8 may be mixed with any other credits and Transaction Indicator 9 may be mixed with any other debits.
    B 09 Batch out of balance The count of Payment Detail Records in the batch does not equal the batch total count on Batch Trailer Record 1, or the sum of the transaction amounts on the Payment Detail Records does not equal the batch total amount on Batch Trailer Record 2.
    B 10 Invalid master file type The Master File Type Code on the Batch Header Record is other than 1 (IMF), 2 (BMF), 6 (NMF) or 7 (Miscellaneous).
    B 11 Unmatched batch number The batch number on the Deposit Ticket Detail Record and Batch Header Record does not match.
    B 12 Unmatched item count The item count on the Deposit Ticket Detail Record does not match the batch total count on Batch Trailer Record 1.
    B 13 Unmatched batch amount The amount on the Deposit Ticket Detail Record does not match the batch total amount on Batch Trailer Record 2.
    B 14 Unmatched credit reversal A credit reversal (transaction indicator R) fails to find an un-reversed original payment with a matching EFT number and money amount.
    B 15 Missing DPC IMF FEDTAX payment without Designated Payment Code 16 or 17; or Federal Payment Levy Program payment without DPC code 18 or 19

  2. Rejected batches are established on the control file and suspended, awaiting successful re-submission. See IRM 3.17.277.5.5 for details on the control of rejected batches.

  3. Re-submission of rejected batches must be on a separate transmission that contains no original payment batches or deposit ticket/debit voucher.

3.17.277.4.2.4  (01-01-2008)
Enrollment Rejects

  1. Following is a list of entity validation reject codes. The financial agent submits enrollment files for validation against CFOL. If a reject occurs, the agent must resubmit the file:

    Reject Code Condition Description
    E 01 Invalid record sequence An Entity Validation Header Record is not followed by an Entity Validation Data Record, an Entity Validation Trailer Record is not the last record on the file or any records are of an incorrect length.
    E 02 Invalid FA ID number The Financial Agent ID number in the Entity Validation Header Record is other than 02.
    E 03 Invalid EIN/SSN Indicator The EIN/SSN Indicator in the Entity Validation Header Record is not equal to 1 or 2.
    E 04 Invalid entity count The count in the Entity Validation Trailer Record is not equal to the number of associated Entity Validation Data Records.

3.17.277.4.3  (01-01-2009)
EFT Number

  1. The financial agent assigns a 15 - digit EFT number. The EFT number is a unique identifier and is used to research payments on the master file and IDRS. Do not use the Document Locator Number (DLN) to perform research on EFTPS transactions. The EFT number is configured as shown in the following table.

    Position Name Description
    1 FA ID Number 2 - Bank of America
    3 - Treasury Offset Program
    4 - SSA Levy Program
        5 - RS-PCC
         
    2 Payment Method 0 - E-file Debit
    1 - ACH Credit
    2 - ACH Debit
    3 - FR-ETA
    4 - (Reserved)
    5 - Levy
    6 - Credit Card
    7 - Online
        8 - Railroad Retirement Board (RRB) Link
        9 - Government Payment (FEDTAX, Federal Payment Levy Program or SSA Levy)
         
    3 Combined Payment Indicator see table in (4) below
         
    4 - 7 Year Digit/Julian Date Year digit plus 001 - 366. If overflow, 401 - 766 may be used. The date that the EFT number was assigned.
         
    8 - 9 Bulk Provider Number See table in (4) below
         
    8 - 15 (10 - 15 for bulk providers) EFT Sequence Number Randomly assigned number

  2. Whenever the combined payment indicator (position 3) is 7, 8 or 9, the first two positions of the sequence number (positions 8 and 9 of the EFT number) are used to identify the bulk provider who transmitted the payments. The financial agent assigns its own set of bulk provider numbers. See Bulk Provider Number in the glossary for a list of assigned codes.

  3. The Tape Edit Processor (TEP) assigns two additional leading digits to denote the Submission Processing Center Code (29 for Ogden) to which makes the EFT number 17 positions for master file and IDRS research (except command code EFTPS).

  4. Positions 8 & 9 are specific to the Financial Agent ID Number, Payment Method, and Combined Payment Indicator. The value may have different meanings. Values in Italics are reserved for future use.

    Position 1
    FA ID #     		Position 2 Payment Method Position 3
    Combined Payment Indicator (Input Method)     		Positions 8-9
    Bulk Provider Number
    2 0 - e-file 0 - Null 00 - 99
    2 1 - ACH Credit 0 - Other
    2 -Invalid
    3 - Electronic Bill Payment
    4 - Insolvency     		00 - Null
    For Combined Payment Indicator 3:
    01 - CF (Checkfree)
    02 - HH (Household)
    03 - Reserved
    04 - Reserved
    2 2 - ACH Debit 0 - VRS, Voice/Rollout Operator
    1 - DDIA
    3 - Personal Computer
    4 - Batch Provider
    5 - Transmitter
    6 - Single Debit
    7, 8, 9 - Bulk Provider     		00 - Null
    For Combined Payment Indicator 1:
    01 - Paper FTD Conversion
    02 - Installment
    03 - Reserved
    04 - Unmatched
    05 - Instant Pay
    06 - 10 reserved
    For Combined Payment Indicator 5:
    01 - 50 Reserved
    For Combined Payment Indicators 7, 8, 9:
    01 - 99 Bulk Provider Number
    2 3 - FR-ETA 0 - Other

    7, 8, 9 - Bulk Provider     		00 - Null
    For Combined Payment Indicators 7, 8, 9:
    01 - 99 Bulk Provider ID Number
    2 5 - Levy 1 - State Government
    2 - Bank
    3 - Corporate
    For Combined Payment Indicator 1 (SITLP):
    01 - AL, 02 - AK, 03 - AZ, 04 - AR, 05 - CA, 06 - CO, 07 - CT, 08 - DE, 09 - DC, 10 - FL, 11 - GA, 12 - HI, 13 - ID, 14 - IL, 15 - IN, 16 - IA, 17 - KS, 18 - KY, 19 - LA, 20 - ME, 21 - MD, 22 - MA, 23 - MI, 24 - MN, 25 - MS, 26 - MO, 27 - MT, 28 - NE, 29 - NV, 30 - NH, 31 - NJ, 32 - NM, 33 - NY, 34 - NC, 35 - ND, 36 - OH, 37 - OK, 38 - OR, 39 - PA, 40 - RI, 41 - SC, 42 - SD, 43 - TN, 44 - TX, 45 - UT, 46 - VT, 47 - VA, 48 - WA, 49 - WV, 50 - WI, 51 - WY
    2 6 - Credit Card 7, 8, 9 - Bulk Provider
    59, 60, 61 - OPC
    31, 32 - L2G
    64, 65 - FYT (File Your Taxes.com)
    68, 69 (bullseyetax.com or 1–615–567–6447)
    2 7 - Online 0 - Single Payment
    1 - IPS
    3 - Private Label
    4 - Batch Provider     		00 - Null
    2 8 - RRB Link 0 - Null 00 - Null
    2 9 - Government 1 - FEDTAX II 00 - Null
    3 9 - Government 1 - Federal Payment Levy Program 00 - Null
    4 9 - Government 1 - SSA Levy 00 - Null
    5 2 - ACH Debit 0 - Campus 00 - Null
    01 - PSC Insolvency, 02 - PSC Perfect, 03 - PSC Imperfect, 04 - PSC Field Office, 05 - BSC Perfect, 06 - BSC Imperfect, 07 - MSC Perfect, 08 - MSC Imperfect, 09 - BSC COIC, 10 - MSC COIC, 11 - ANSC Perfect, 12 - ANSC Imperfect, 13 - ATSC Perfect, 14 - ATSC Imperfect, 15 - Bulk AUSPC, 16 - Bulk FSPC, 17 - Bulk FSPC, 18 - Bulk KCSPC, 19 - Bulk OSPC
    8 Prenotes and Prenote Returns    
    9 NOCs and Refused NOCs    

3.17.277.4.4  (01-01-2008)
Transaction Indicators

  1. Transaction Indicators are assigned by the financial agent to distinguish between the different types of transactions. EFTPS also uses the transaction indicator to distinguish between debits and credits, and to assign the correct transaction code.

  2. The EFT Transaction Indicators are shown in the following table. See Exhibit 3.17.277-2 for exceptions.

    Transaction Indicator Meaning Debit or Credit Description
    0 Payment Credit Taxpayer payment, will normally post 6X0 transaction to taxpayer's account
    1 Return, Taxpayer Error Debit Dishonored payment, will normally be processed as a TC 6X1
    4 Return, Non-Taxpayer Error Debit Corrected payment, will normally be processed as a TC 6X2
    8 Unidentified Payment Credit Payment that cannot be connected to a taxpayer by the financial agent. The FA should send an offsetting record.
    9 Unidentified Return Debit Debit that cannot be connected to a taxpayer by the financial agent. The FA should send an offsetting record.
    A Payment Offset Debit Offset to Unidentified payment. EFTPS matches "A" record to "8" , then removes both from active status on the system and control file.
    B Return Offset Credit Offset to Unidentified Return or Credit Reversal. EFTPS matches "B" record to "9" or "R" , then removes both from active status on the system and control file.
    R Credit Reversal Debit Bank error. If reversal is accepted, the record will normally be processed as TC 6X2. If not accepted, the FA must submit a "B" offset record.

3.17.277.4.4.1  (01-01-2009)
Electronic Reject/Offset Mismatch Report, CMS 2

  1. If an 8, 9, A or B record is received without a match, the record is sent to suspense to wait for the offset to arrive, and listed on the Electronic Reject/Offset Mismatch Report. See Exhibit 3.17.277-4..

  2. This report will be emailed by the System Administrator weekly (on Friday) to the financial agent at dixie.hare@firstdatacorp.com.

    1. Some records are listed only because of timing. The offset record may have already been initiated for settlement on the next day.

    2. The financial agent must review the list to ensure that an offset record is being generated.

    3. In some cases, a contested dishonored return cannot be offset. See IRM 3.17.277.8.1.1for procedures.

    4. Cases more than one year old should be referred to Unidentified Remittance File.

  3. Transaction Indicator "8" records shouldNOT be moved out of suspense for seven calendar days. This allows time for the financial agent to possibly supply offsetting record.See 3.17.2775.4.3

3.17.277.4.5  (01-01-2008)
Credit Reversals

  1. Financial institutions or taxpayers may initiate a reversal of an ACH credit or same day FR-ETA payment.

    1. If there is an unpostable condition, EFTPS technicians should not work it at all - no TC652 should be input - it is un-posted.

    2. EFTPS technicians will only provide appropriate research for the Unpostable Unit.

    3. No other manual adjustments should be done by EFTPS technicians.

      Note:

      Refer to IRM 3.17.10.6 regarding Deposit Discrepancies.

  2. Credit Reversals are received by the financial agent and matched to the file of original payments. Reversals are automatically approved by the financial agent if:

    1. The reversal finds a payment with the same TIN and money amount,

    2. The matching payment had a settlement date within the five previous banking days, and

    3. The matching payment was not already reversed with a credit reversal.

    4. If more than one matching payment is found, the record with the latest settlement date is selected.

  3. Credit reversals that do not meet the above criteria are disapproved.

    1. A disapproved reversal is sent to IRS as an unidentified return, transaction indicator 9.

    2. The financial agent then initiates a return offset, transaction indicator B.

  4. Approved credit reversals are sent to IRS with:

    1. The same TIN, name control, tax type, tax period, and money amount that was present on the original payment.

    2. The Original Payment Date on the reversal record is set to the payment date of the original payment.

    3. The EFT number of the original payment in the Reference Number field.

    4. Transaction Indicator R.

  5. The EFTPS load and validate program matches the reversal to the original payment by EFT number.

    1. If unable to find the matching record, the money amount is different, or the payment has already been reversed, the batch is rejected back to the financial agent.

    2. If the match is successful and the original payment has already been processed (not in error, suspense, or still being validated), the reversal record is automatically corrected, if necessary, to match the information on the payment, then sent to TEP.

  6. At the time the reversal was validated, if the matching record was in error, suspense, or still being validated, the reversal is sent to unresolved status.

    1. Although the record is assigned to unresolved, it cannot be selected for correction.

    2. When the original payment is corrected, the next TEP will retrieve the reversal record and change the tax information to match the original payment.

    3. If the original payment is deleted, the reversal is also deleted during the TEP.

3.17.277.5  (01-01-2008)
Electronic Payment Control File

  1. The Electronic Payment Control File (EPCF) provides control of electronic payments from the time of receipt from the financial agent until the payments are sent to the appropriate Master File for posting.

  2. Transaction files and deposit ticket records are received simultaneously from the financial agent.

    1. Each deposit consists of up to 9999 batches.

    2. Each batch is expected to be limited to 5,000 transactions, although this is not a systemic requirement.

    3. The batch is the basic unit of control on the Electronic Payment Control File.

3.17.277.5.1  (01-01-2008)
Control File Suspense Accounts

  1. The Daily Trial Balance of Electronic Payment Control File is balanced to each of five EFTPS General Ledger Accounts using the EFTPS Daily Balancing screen.

    Figure 3.17.277-5

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Research and Correct EFTPS Data screen

  2. Balance the control file to the following general ledger accounts:

    Account Number Account Name
    4125 EFTPS Suspense for BMF
    4225 EFTPS Suspense for IMF
    4425 EFTPS Suspense for NMF
    4765 EFTPS Miscellaneous Suspense

  3. Account 4765, Miscellaneous Suspense, is used for any payment that is determined to be erroneous (Transaction Indicator 8 or A for credits or 9 or B for debits), in which the financial agent already knows that a reversal will be sent and for "miscellaneous" payments (masterfile 7).

    1. Miscellaneous payments are payments not identified as IMF, BMF or NMF by the financial agent, such as user fees or not recognized as valid IMF, BMF or NMF Tax Types in Load and Validate.

    2. Federal Payment Levy Program payments are initially journalized manually into Account 4765 from the IPAC record, without supporting data on the EFTPS Payment Control File. Until the data file is received by EFTPS and the automated journal processed, Account 4765 must be manually reconciled. See IRM 3.17.277.6.

3.17.277.5.1.1  (01-01-2008)
Procedures for Balancing to General Ledger Account using EFTPS Daily Balancing Screen

  1. To access the Daily Trial Balance Screen, highlight and select RESEARCH AND CORRECT EFTPS DATA then highlight and select DAILY TRIAL BALANCE SCREEN

  2. On the Menu bar, highlight and select either FILE, EDIT, or OPTION. See Figure 3.17.277-6.

    Figure 3.17.277-6

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Daily Trial Balance Screen

  3. FILE choices are -
    Current Date - this activates the option and edit button. REPORT DATE and CYCLE are filled in with the most current information. Select Option to display the general ledger accounts and then select the account.
    Past Date - this option will display the prior date(s).
    Print - this option prints the text on the screen.
    Exit - this option returns you to the RESEARCH AND CORRECT DATA menu.

  4. EDIT choices are -
    COMMIT - you must commit data entries (manual entries made in the MANUAL ADJUSTMENTS or COMMENTS sections of the screen).

  5. OPTION - this selection automatically highlights when you select Current Date or Past Date.
    Choose the account - BMF, IMF, NMF or MISC - you wish to work on. The related account information is displayed. See Figure 3.17.277-7.

    Figure 3.17.277-7

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Daily Trial Balance Screen

    • Section I subtotal is the sum of the previous day balance, CMS 30 DT/DV summary, CMS 24 Reclassification Summary and CMS 22 Trans Release Summary totals.

    • Section II subtotal is the sum of the Batch Control Inventory, Error Inventory and Suspense Inventory on the CMS 29 Daily Posting Summary.

    • The total sum(s) are the same as the subtotals. Section I and Section II are compared. If they do not agree, a pop-up message will display an out of balance condition. Click OK to cancel the pop-up. See Figure 3.17.277-8.

      Figure 3.17.277-8

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Daily Trial Balance Screen

    • The MANUAL ADJUSTMENTS and COMMENTS sections are provided for data entry. MANUAL ADJUSTMENTS amounts may be up to 12 numbers long. Commas are an option; do not use dollar signs. A minus sign "-" is used for negative amounts (the number will be displayed in brackets). If the number includes cents, use a decimal point (not required for whole numbers). The Section I total is recalculated if data is entered in this section. If an error occurs, a message will appear. See Figure 3.17.277-9.

      Figure 3.17.277-9

      This image is too large to be displayed in the current screen. Please click the link to view the image.

      Daily Trial Balance Screen

  6. In the event that manual balancing is needed, utilize the following procedures for each general ledger account to balance each day as follows:

    1. Start with the previous day's balance of the account;

    2. Add the deposit ticket totals;

    3. Subtract the debit voucher totals;

    4. Add or subtract the reclassification totals (add for a credit increase or subtract for a credit decrease);

    5. Subtract the net credit amount from the Trans Release Summary (add if a net debit). Bypass this step for account 4765 and 4425;

    6. The total is the ending balance for the general ledger account that you are balancing, and should equal the sum of the batch control, error, and suspense ending inventories on the Daily Posting Summary.

  7. Upon completion of IRACS month-end processing, the IRACS function will provide EFTPS with a copy of the M-Trial, Monthly General Ledger Trial Balance of the EFTPS accounts.

    1. Review the EFTPS general ledger accounts dated the last day of the month to ensure that the EFTPS accounts agree with the M-Trial.

    2. If an out-of-balance condition occurs, immediately notify the IRACS function. The out-of-balance condition should be carried as a reconciled adjustment until the next processing month.

    3. An EFTPS Activity Report will be generated by IRACS and provided to EFTPS technicians on a monthly basis. This report will include all automated and any manual journals that appear in each of the EFTPS accounts, i.e., 4125 (BMF), 4225 (IMF), 4425 (NMF) and 4765 (MISC). See Exhibit 3.17.277-31..

    4. The CUR and CUM totals would be the same as the IRACS Report #051 - General Ledger Account Details that is currently provided for each of the five accounts.


More Internal Revenue Manual