- 3.17.63.26 Federal Tax Deposits (FTD)
- 3.17.63.27 Data Base Administrator Functions
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The FRB will make requests by memo of reversals of amount previously processed in an FRB day batch. These reversals may be as a result of a dishonored check, or they may result from an FTD that contained an erroneous amount. Processing of these requests will be accomplished by the site. Research the request to determine that the FTD was processed in the amount stated in the memo.
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For dishonored checks, prepare an FTD replacement coupon, using the same entity information contained in the original FTD. The money amount will be negative in the amount of the dishonored check. When two or more dishonored checks are to be processed for the same bank, these may be placed in the same block. Prepare F8164 reflecting the total negative amount. SCRIPS will assign a microfilm serial number, and microfilm the block of work.
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Prepare SF 5515 in the total debit amount. SF 5515 will be numbered in the proper numbering series for the particular FRB to which it is sent. This SF 5515 will be considered a regular SF 5515, and will not be input until a confirmed copy is received from the bank.
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Reversals due to erroneous amounts on the original FTD will be processed in the same manner as the dishonored checks described above except, in addition to the negative FTD, a credit FTD will be prepared with the correct money amount. The negative FTD will reverse the entire erroneous amount, the credit FTD will establish the correct amount on the BMF. F8164 for these reversals will be in the net amount (credit FTD minus negative FTD). The net amount for these items can be either debit or credit. When the net amount is credit, a regular SF 215-A will be prepared.
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Upon receipt of the confirmed copy of DT or DV verification data will be entered through SCRIPS/ISRP-DIS using the same ABA number, transmittal serial number, and sequence assigned to the FTD block of work. The confirmation date of the DT or DV will be the batch date assigned to the verification card.
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These verification items should be prepared and input immediately, upon receipt, to ensure that the reversal information is on the FDCR for that specific batch day.
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Occasionally, the confirmed copies of these DTs or DVs may not be received in time to include in the FDCR. In this case, the amount will be reported later on the SFDCR. When the DT or DV is received in time to include in the daily wire that is equal to the confirmation date, but the verification card has not yet posted, the amount will be treated as a pen and ink adjustment to the non-receipts line on the FDCR confirmed DTs/DVs.
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Error correction procedures (IRM 3.5.17) provide for the correction of tax class amounts to perfect FTDs on the error register. These corrections to the data will be made daily as it is perfected and looped back into the processing cycle.
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Verify that total tax class increases equal total tax class decreases.
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Adjust the FDCR tax class amounts in pen and ink.
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Occasionally, an error by the bank in the preparation of the transmittal F2284 may result in a large difference that requires an adjustment F5526 and a DT or DV. When the amount is excessive (usually $50,000 or greater), exception processing procedures may be necessary.
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Exception processing will be on an individual transmittal basis. Exception processing may be initiated by either the FRB or the IRS.
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When an error in an excessive dollar amount of entry is recognized, immediate telephone contact will be made between the FTD coordinators of the FRB and the site, to provide the information necessary to effect an immediate adjustment.
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Sites will perform the following procedures when exception processing is requested:
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Locate the transmittal in question and verify the adjustment amounts; also ensure that the adjustment has not been previously processed.
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Prepare F5526 and SF 215-A, or SF 5515, as required.
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Assign a number to the SF 215-A, or SF 5515, from the numbering log.
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Fax the DT/DV and F5526 to the FRB.
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File the F5526 in the pending file awaiting the day batch reports. Attach the DT/DV to the F5526.
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The FRB will prepare a duplicate DT/DV using the same number as the copy of the fax. The FRB will receipt this document and forward the receipted copy to the site.
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When this item is reached in the processing of the day batch reports, it will be processed in the normal adjustment manner except that DT/DV will not be transmitted to the FRB.
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The item will be recorded as an adjustment in the normal manner.
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Journal copies will be input for the batch day to be reported on the wire.
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The receipted copies of the DT/DV received from the FRB will be placed on the wire for the date of confirmation.
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Receipted copies will be input in the normal manner.
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In cases where fax service is not available, and the emergency of the case warrants, the site may furnish the FRB the proper document number from the log book. The FRB will prepare the DT/DV using this number. In these cases, the site will make a duplicate copy using the same number and attach it to the F5526 to be placed in the pending file.
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These procedures are normally limited to adjustments of $50,000.00 or greater. However, FRBs may, at their discretion, request adjustments under this exception processing procedure for lesser amounts, when a delay might result in extreme hardship to the commercial bank involved. If these exceptions become excessive, problem reports detailing the cases should be routed to NHQ.
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Weekly Balancing — IRACS FTD data should be matched against output generated by the FTD system on a weekly basis. Once weekly, after DWIRE has been pulled, generate a DWR list to print a short version of all DWRs on the data base. This report will include each open DWR by batch date and FRB number, and will list the remaining balances in non-receipt unclassified and in-house unclassified.
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Compare these amounts to run FTD 63–40, classified report, generated from the FTD system to ensure that the figures agree. If a discrepancy exists in a DWR between the amounts listed as non-receipts and in-house unclassified, but the sum of the two figures agrees with the FTD 63–40 run, correct the balances through the FTD Control main menu in order to correct the general ledger accounts as well as the DWR.
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If a discrepancy exists in a DWR between the amounts listed as non-receipts and in-house unclassified, and the sum of the two figures does not agree with the FTD 63–40 run, contact NHQ IRACS after completing research to determine what created the discrepancy.
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If a discrepancy exists in the FRB number, the DWR must be reversed and re-input prior to inputting the next FTD daily wire package. Indicate on affected DWIRES that the cum balances have changes by the same amounts.
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If a discrepancy exists in the batch date, research to determine whether the batch date is correct. If it is determined to be incorrect, reverse and re-input.
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If no DWR exists for an item listed on FTD Run 63–40, or if a DWR exists with no corresponding entry on FTD 63–40, research previous FTD output and F5805s, to determine where the previous error had been made. An additional DWR should be remaining in the data base with the corresponding differences in non-receipts and in-house unclassified. Contact NHQ IRACS before making any correction or reversing a DWire posting.
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Daily Balancing — The IRACS FTD data should also be matched to the General Ledger Account 7300 balance and the unconfirmed debit vouchers.
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Monthly Balancing- The IRACS MTrial balances in Accounts 4960 and 7220 should be netted with the unconfirmed deposit ticket amount only on the month-end IRACS 011. (They should net to zero.)
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The Debt Management Section (DMS) of DOJ will transfer to Atlanta (ALC 20–09–0700) funds collected through lockbox. All transfers will be made via IPAC. Reference 3.17.10
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This IPACR will be supported by a listing showing the debtor's name and SSN, interest computation date, cause of the action, DOJ deposit number, collection office claim number, dollar amount, and a collection office referral number. Upon receipt of the IPACR, Accounting will enter TAS 20F3885 (if not already present) and ensure that the total of the amounts on the listing equals the amount shown on the IPACR.
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After verification of the amount of IPACR and the support listings, the amount will be input to IRACS through the Accounting Application Control menu. The support listing will be used to determine where the payments should be applied. The payments will be reclassified from Account 20F3885 to the appropriate receipt account. Necessary documents will be prepared and input to apply the payments to the proper taxpayer accounts.
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If the funds were erroneously transferred, the specified DOJ collection officer should be contacted, and DOJ will execute an IPAC to transfer the incorrect item back to DMS.
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If the funds are returned to DOJ, any actions taken in item (3) above must be reversed. The new IPACD returning the funds to DOJ is input to IRACS.
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Wire transfer includes the various systems which transfer money from one financial institution to another. Wire transfers replace checks and other traditional methods of moving money. The advantage of wiring is the speed with which money can be moved from one account to another. This enhances IRS' cash management efforts.
Note:
In the past, Electronic Funds Transfer (EFT) has been used to describe wire transfers. In order to avoid confusion with EFTPS, refer to EFT payments as wire transfers. Reference to EFT will still be found when referring to specific computer runs that still maintain the title of EFT.
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Wire transfer systems use computer networks to link to financial institutions. Existing IRS programs use CASHLINK as the network to receive notification of funds. The transactions are handled electronically and paper records of the transactions are provided. These are used as source documents and payment records for accounting and research.
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Support Listing—created daily and retrieved through CASHLINK, it provides information on all transactions pertaining to a specific ALC (each campus has a unique ALC). In addition, the listing contains coded and narrative materials called messages, which provide the details of each transaction.
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SF 215-C—computer-generated deposit ticket verifies the total wire transfer transactions for the day. It should equal the daily total at the bottom of the support listing. The deposit ticket number is printed on the support listing. The Fedwire deposit tickets are confirmed when received. Box 2 is the deposit date for reporting purposes.
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SF 5515 — reverses or corrects transactions made previously. Debit vouchers may be issued for dishonored checks, insufficient funds to support previously agreed-to automatic EFT transactions, or to correct erroneous deposits.
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Only approved applications using wire transfers may be accepted. All new programs involving a means of electronic payments must use the new modernization criteria for establishing new programs. For example, it will be necessary to coordinate all new programs of payment receipts with EFTPS. If unexpected payments show up on the daily support listing for Fedwire, please call the Wire Transfer analyst to have the payment reversed. All IMF payments that are same day payments and need individual or unique processing will be likely to appear on the system with prior notification from either a revenue officer or field employee.
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FMS developed a global cash concentration system (CASHLINK). This system is the agency access program which enables the agencies to access their deposit information on-line. Access to CASHLINK may be done the morning after the deposit date which is when the deposit ticket number will be assigned. The deposit ticket number appears on the summary screen. Access CASHLINK each day for current work, and to see if any messages have been posted to the wrong ALC. If messages that do not belong to you are stopped the same day, they will not appear on your deposit ticket.
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CASHLINK gives the deposit ticket number the morning after the deposit day, so this information may be used any time during the month, and especially at month end, to journalize the amounts. If this is the only source of documentation, however, closely monitor the confirmed paper deposit tickets coming in. DMRS does not have reversal capability nor does FMS provide authority to PNC Bank to make reversals. Printing out the daily detail and summary information from DMRS, helps assure accurate internal controls. This is the same information that is sent through the Automated Clearing House system by all the commercial banks that the government uses for collection of funds. This information will also be present on the Deposit Activity Report which identifies deposits by source code. Also, the log book for run controls and monitoring of individual DT/DVs is important to maintain the integrity of the accounting system.
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In the event that a taxpayer inquires about making a same day payment or wire transfer, ask if he/she is enrolled in the EFTPS. If so, they may make a same day payment by following the instructions in their Payment Instruction Booklet. If they are not enrolled or the payment is for individual taxes (IMF), please call NHQ EFT analyst. The EFT analyst will send instructions pertaining to the format for making the payments. All IMF un-enrolled payments are approved for amounts of $2,000 or more, however, they are monitored to be sure of the correct format. All same day payments are sent through the Minneapolis FRB using ABA Number 091036164 and Ogden's ALC 20092900.
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DDIA is a collection program. Taxpayers make arrangements with collection personnel to repay tax liabilities in installments. An agreement is signed allowing IRS to periodically withdraw the installment amount electronically from the taxpayer's bank account. The customer's account is debited once, and only once, a month.
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On the expected payment due date Bank of America prepares a paper SF 215-A and records it in CASHLINK.
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Bank of America creates and transmits to IRS a tape of all transactions which fail to process properly. These items are supported by debit vouchers which are passed through the Pittsburgh FRB.
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Site responsibilities:
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Monitor the progress of all transactions. EFT 12 and EFT 18 identify all debit and credit transactions, respectively, associated with DDIA. A deposit ticket must correspond with each EFT 12 summary. Likewise, a debit voucher for each EFT 18 summary is required. All EFT 12 and EFT 18 transactions must be included in EFT 16 and EOD 16 reports on the appropriate dates. EFT 12 and 18 constitute the journal document along with the DT/DV.
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Keeping a log ensures that all processing is completed. Log formats can be established by individual sites. Missing entries and mis-matched dollar amounts will identify problems quickly.
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Verify and balance the deposit ticket with the EFT 12 summary daily. Journalize entries through the Deposit Control menu.
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Verify and balance the debit vouchers from the memo or confirmed copy, using the date in box 2 to the EFT 18 summary daily, and journalize entries. If the debit voucher is not received at the time the EOD 16 is ready for journalization, a F2424 may be prepared and journalized to debit the proper SCCF account and credit Account 1720. Upon receipt of the SF 5515, reverse the entry by debiting Account 1720 and crediting Account 1710. Reclassify when the EOD 16 run identifies the money as other than tax class 1.
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Verify and balance EFT 12 and EFT 18 to EFT 16 and EOD 16 daily. Debit vouchers are processed through the Pittsburgh FRB. If a debit voucher is not received within 10 work days, call Bank of America to initiate research or call NHQ transfer analyst.
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If runs or reports are missing, initiate research with Computer function to determine the reason. Failure to ensure processing of all runs, or receipt of all DT/DVs, will result in improper postings to the MFs, or in erroneous entries on IRACS. Bank of America also issues a monthly bank statement to accounting that includes T/P EIN, money amount, transaction date, and other data. This may be used as a research tool. The Bank of America statements should be retained for a period of three years from date of statement.
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Close coordination with Collection and Computer functions is necessary to ensure that the payments and tapes were generated to Bank of America.
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SITLP is a compliance program that levies state income tax refunds to satisfy federal tax liabilities.
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The SITLP coordinator in each W&I site will have overall responsibility for the coordination between the state and the site. Procedures have been provided for each SITLP coordinator and have been distributed to the NHQ Collection. A list of the SITLP Coordinators can be found on the IRWeb on the Who/Where tab under SERP.
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The following is a listing of the participating states. The states become operational once a memorandum of understanding (MOU) is signed, and a successful test tape is processed.
STATE STATE California Connecticut Delaware Georgia Iowa Kentucky Rhode Island South Carolina Vermont Maine Massachusetts Nebraska New Jersey New York North Carolina Ohio Oregon Missouri Wisconsin Louisiana Utah Alaska (dividend, not state income tax) * West Virginia * Maryland * Oklahoma * Illinois * Indiana * Michigan * These states are participating in EFTPS. Note: Alaska participates in the Alaska Permanent Fund Dividend Levy Program (AKPFD). This is a similar matching program but the levy attaches to the state's Permanent Fund and Dividend (PFD), rather than a state income tax refund. AKPFD levy tapes are converted into a SITLP format for processing through TDA 55/56 in Fresno.
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All states must send the payment (check) along with the accompanying tape to keep the integrity of the state receipts and validation process. Only payments by check will be received until the states begin to use EFTPS.
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The SITLP coordinator receives the tapes and the check is maintained in Receipt and Control. A copy of the check is provided to Accounting.
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Accounting will maintain a log of the received payment cartridge and payment from the state to ensure that all payments and payment cartridges are accounted for.
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The SITLP coordinator is responsible, or will work with local MITS, for RI copying the cartridge to ECC and opening an ITAMS ticket, Service Request, to have the TDA 55 run. The Service Request will include the request (TDA 55), the state name, and the reel number. The cartridge should be run the same day it is received since the received date of the check will be the posting date of the levy payment.
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If the cartridge is determined to contain incorrect data, the SITLP coordinator will return it and the check to the state. The state will return a corrected cartridge back to the SITLP coordinator. This cartridge will contain the original sequence number, but with an " R" added. (e.g. 0001 when received would be 0001R.)
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TDA 5540 Run Controls report will be generated and forwarded to Accounting if the data on the cartridge is valid. This information can be found on EONS. When the TDA 55 is received, balance it to the check amount and make a corresponding log entry.
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TDA 55 Error report will be generated and forwarded to Accounting if there is a problem with the cartridge. This information can be found on EONS. The SITLP coordinator will be contacted to coordinate resolution of the error with the state.
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If the received date of the check and the run date are different, ECC must be notified that the transaction date in the TDA 56 card file needs to be changed to be the received date of the check. Sites that edit the card file themselves must ensure that the received date of the check is used as the transaction date, and not the run date.
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IRACS will check EONS for, or be notified by the SITLP coordinator of, a successful TDA 55 run. IF successful, IRACS will:
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Contact Deposit to deposit the payment (a separate deposit ticket for tax class 2 will be completed).
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Edit card file TDA56-CARDS on the mainframe, and input the required information (tape number, trans date (IRS received date of payment), check control number, etc.). See IRM 3.8.45.
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Open an ITAMS ticket to run the TDA56.
Note:
Please review the applicable IRM reference for additional procedures.
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Federal agency tax payments are processed by FEDTAX II as part of EFTPS. FEDTAX II payment records, deposit tickets and debit vouchers are included with EFTPS at the Ogden site and require no separate accounting.
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EFTPS creates four types of activity that require IRACS input to the general ledger.
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Deposit ticket journals
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Debit voucher journals
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Deposit reclassification journals
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TEP journals
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EFTPS provides a daily automated journal file for posting to IRACS. The instructions below are used if the automated journal fails.
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Each deposit ticket sent by EFTPS to IRACS is based on the classification provided by the financial agent.
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Use the DT/DV Summary report as an index to make sure that all deposit tickets have been received and journalized, and to validate the journal totals.
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The automated journal number is 110. If a manual journal is required, prepare a 210 journal from a printed copy of the EFTPS deposit ticket to support each journal. The printed deposit ticket lists all of the batch numbers that have been included on the deposit.
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Debit the appropriate Account 2100 tax class accounts or to tax class 9, revenue suspense.
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Credit one or more of the EFTPS suspense accounts.
Acct Num Account Name 4125 EFTPS Suspense for Master File—BMF 4225 EFTPS Suspense for Master File—IMF 4425 EFTPS Suspense for NMF 4765 EFTPS Miscellaneous Suspense -
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Deposit tickets are sorted by settlement date in EFTPS.
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The deposit ticket does not identify user fees and non-revenue items. Non-revenue deposit items are classified into Account 4765, then reclassified.
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Deposit tickets from the Federal Payment Levy Program (FPLP) are journalized to different accounts because the money is received through IPAC rather than CASHLINK.
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When the money is received on IPAC, a manual journal is prepared to debit Account 2910 and credit Account 4765.
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The EFTPS journal 114 debits Account 4765 and credits Account 2910, and debits the Account 21XX tax classes and credits the appropriate EFTPS suspense accounts.
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IRACS is programmed to recognize the FPLP deposit ticket journal record by the record code 5. Normal EFTPS deposit tickets contain record code 1.
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Each EFTPS debit voucher contains tax classification information provided by the financial agent.
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Use the DT/DV Summary report as an index to make sure that all debit vouchers have been received and journalized, and to validate the journal totals.
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Use the printed debit voucher as the source for journalization.
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The automated journal number is 111. If a manual journal is required, prepare journal 221 to debit the appropriate suspense account and credit the Account 21XX tax class.
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For FPLP debit vouchers, a manual journal from the IPAC record debits Account 4765 and credits Account 2910. Then the EFTPS 114 journal debits Account 2910 and credits Account 4765, and debits the appropriate EFTPS suspense accounts and credits the Account 21XX tax classes. The journal record from EFTPS is identified by record code 6.
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The source document for the automated reclassification journal number 112 is the EFTPS reclassification summary. Any debit or credit transactions that can be reclassified by the EFTPS system is included on the EFTPS Reclassification summary, including the following types of transactions:
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Any payment or debit record that was mis-classified by the financial agent.
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Any record that was changed to a different tax class or MF by error correction.
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Any record that was changed to a different tax class or MF as a result of an auto correction during load and validate.
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Special fund payments that were classified as tax class 9, revenue suspense, by the financial agent, but were assigned tax type codes that EFTPS is able to further classify. EFTPS assigns a pseudo tax class, which is printed on the reclassification list. These include:
Pseudo Tax Type Tax Class Description 68770 P Photocopy fees 01210 C Conscience Fund 54321 O Installment Fee New 54323 R Installment Fee REI 54324 E OIC User Fee -
Batches that have been rejected during EFTPS load and validate. The payments are reclassified to tax class 9, MF 7, until a corrected batch is re-submitted. Because the reclassification program is unable to determine the original MF, the EFTPS reclassification summary will show rejected batches as coming from BMF.
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Any other reclassification must be completed with a manual journal when the items are deleted from EFTPS suspense.
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The EFTPS Reclassification summary is divided into two parts:
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Part 1 is the tax class reclassification containing the net change in tax classes, as identified by a comparison between the tax type codes and the deposit ticket, and by changes in tax types made by error correction or auto correction.
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Part 2 is the MF reclassification based on a comparison between the tax type codes and the MF in the batch header, plus MF changes created by auto correction and error correction.
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Both parts include a net change column that can easily be used to create a reclassification journal.
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The EFTPS reclassification list includes detailed information of the items that are being reclassified.
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A TEP journal record is prepared for each MF as EFTPS records are sent to ECC.
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The automated journal number is 113. If a manual journal is required, use the EFTPS daily trans release summary to prepare journal 417 for BMF, and 418 for IMF.
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For the normal credit balance, debit the ECC suspense account and credit the EFTPS suspense account.
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For BMF, debit Account 4110 and credit Account 4125.
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For IMF, debit Account 4210 and credit Account 4225.
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If the report has a debit balance, debit and credit accounts are reversed.
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ANMF is an automated system for the accounting and data control of NMF accounts. See IRM 3.17.46 for additional information on NMF theory. ANMF automates the following accounting functions:
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NMF;
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Index card generation system which is used to record NMF activity that is not processed through ANMF.
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Block Control — There are two screens on ANMF designed for IRACS use only:
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The F813 Block Control screen — the major control for all items entered into ANMF.
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The update journalized IRACS recap screen — used to record all journalized NMF recaps generated from ANMF, and the IRACS journal number.
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All blocks of documents that are either pre-journalized or post-journalized will be input to the ANMF F813 Block Control screen. The only exceptions are entity changes, with-remit NMF extensions of time to file, transfers-in, and old accounts (ULC's). See IRM 3.17.46 for entry information. The listings generated through ANMF associated with input through the two screens above are:
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NMF Block Listing
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NMF Unprocessed Block List
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Report of Blocks-out-of-Balance
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NMF Error Register
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Recap of journalized IRACS Summaries.
For detail information of NMF listing refer to 3.17.46.
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IRACS will assign a DLN to daily assessments, prepare F813, journalize assessments through IRACS, enter the F813 information onto ANMF using the F813 Block Control screen, and stamp F813 with the journal number and the 23C date. The account period for the assessment should agree with the 23C date.
Example:
July 1 assessment date should be journalized in July account period. ANMF processes assessments using current month while IRACS journals according to the 23C date. This causes reconciling items between the ANMF system and IRACS. IRACS should provide a copy of F8166, or F813, showing the posting account period to NMF for balancing purposes.
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Summary Record of Assessment will be signed and dated by the assessment officer. The requesting office will be informed of the date of signature and the DLN of the assessment.
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For Jeopardy assessments only, a separate F813 and DLN is prepared. Multiple assessments against the same taxpayer can be included on the same F813. IRACS will forward the F813 and the related documents to NMF for input to ANMF through the original assessment — daily screen. In some instances assessments may be telephoned to the site for immediate assessment. Phone requests must furnish the following minimum information:
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Affirmative statement that the district director has approved Forms 2644, recommendation forJeopardy/Termination assessment
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Name, address, and TIN
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Type of tax and taxable period
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Amount of tax, interest, and all applicable penalties to be assessed
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Amounts of payments, if any, and balance due
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Types of assessment — Quick, Prompt, Jeopardy or Termination
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Appropriate abstract number
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Transaction codes
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Weekly assessment processing. If the statute of limitations is not imminent or no specific immediate assessment date is requested or required, assessments will be made as a weekly assessment. Recaps with a 23C date, six days or fewer into the new month, will be input as prior month.
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IRACS will input the F813 information into ANMF using the F813 Block Control screen and include the 23C date on F813 (2-part).
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IRACS will forward the F813, and the related assessment documents, to NMF using the NMF block list as the transmittal.
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After NMF batch journalization, IRACS will stamp the F813 with the journal number. IRACS will then input the journal number to ANMF using the UPDATE JRN'L screen. Use the transmittal recap of summary.
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On rare occasions, erroneous refunds are made from the deposit fund. Because the deposit fund is a fund account rather than an appropriation account, the procedure to record and account for this occurrence is somewhat different from the procedure for handling erroneous refunds from the Refund Appropriation Account 5100.
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Upon discovery of an erroneous refund of deposit funds, the procedure is to repay the deposit fund from the Refund Appropriation Account 20X0903, and simultaneously establish the receivable for the erroneous refund. This repayment is required because deposit fund monies are being held in trust by an agency of the U.S. Government, therefore, no taxpayer may suffer a loss as a result of an erroneous depletion of these funds. After repayment to the deposit fund has been made, further action would proceed just as any other erroneous refund as prescribed in IRM 3.17.79.
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An OIC is a proposal to settle an assessed balance-due liability for less than the amount assessed, or when there is some doubt as to the liability of the taxpayer for the assessment owed. F656 is submitted by taxpayers to one of the two COIC sites, Memphis or Brookhaven.
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Remittances received with F656 are not applied to the taxpayer's liability. The deposit is made and a copy of F656 is sent to the CSCO to prepare and furnish proper documents to accounting. The remittance is held as a deposit in Account 4710. The offer technician working in CSCO has the responsibility for processing all OICs. This includes research, follow-up, IDRS records, and the annual report of amounts recouped from collateral agreements.
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The offer technician furnishes the proper documents to Accounting to enable input to IRACS. At the end of each month's accounting period, a copy of the OIC Inventory Detail report is forwarded to the CSCO OIC unit to reconcile their deposit record with the general ledger account. Both areas will coordinate to resolve any differences.
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IRACS will receive F4710-CG, F2515, F3753s, or F2424 for processing to IRACS.
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Accounting prepares the appropriate documents for applying OIC deposits on NMF accounts, and notes the action on the related NMF accounts.
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When an offer is rejected by the Service or withdrawn by the taxpayer, CSCO notifies Accounting whether to refund or apply the deposit to the taxpayer's liability.
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Source documents must accompany the disposition request.
If Then the deposit is refunded to taxpayer. CSCO will prepare and provide F3753 and AOIC Deposit Refund Report. the deposit is applied to
taxpayer's liabilityCSCO forwards the F2424–CG along with copies of the Form 3040, Authorization to Apply Offer in Compromise Deposit to Liability, or written authorization prepared by the taxpayer. -
Requests for refund must be processed expeditiously. Refund requests are sent to the Accounting refund scheduler.
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The scheduler will prepare an SPS, formerly SF 1166 OCR, for the amount to be refunded.
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The SPS refund schedule is routed to the authorized certifying officer to be certified and processed for refund.
Note:
Interest is not payable on any deposit fund money refunded to the taxpayer.
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Deposits applied to the taxpayer's liability must be reclassified to adjust between the deposit fund and revenue receipts.
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If any NMF accounts are involved, number F2424–CG using tax class 6, doc code 76. (Per IRM 3.17.46 the first digit of the block number indicates the true tax class.)
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CSCO will use the date the deposit remittance was received when preparing F2424–CG.
Note:
A deposit made with respect to a tax liability stops the accrual of interest, if the deposit is subsequently applied to satisfy the tax liability. Therefore, interest on the underlying tax liability will be computed based upon the date the deposit is received by the Service, if the deposit is applied to the outstanding tax liability (either as an accepted offer or as a payment based upon the taxpayer's approval via Form 3040).
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When the territory office or the COIC unit determines that the amount offered reasonably reflects the Service's collection potential, the OIC is accepted. For cash offers the amount held in Account 4710 is usually the amount being offered by the taxpayer.
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CSCO prepares and forwards F2424–CG to Accounting to transfer the OIC deposits to revenue receipts using TC 670 with the date the deposit remittance was received.
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Process the credit copy. The debit copy is maintained in the Accounting OIC file and is used for month-end balancing of the deposit fund.
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Distribution of documents:
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Route F3177s for blocking and numbering for MF processing.
-
Route F2424–CG to the accounting control area for further processing.
-
-
Upon receipt of F2424–CG from the offer clerk, Accounting will:
-
Block and number F2424–CG using blocking series as prescribed in IRM 3.17.243.
-
Prepare F813 for each block of F2424–CG.
-
Route completed blocks of F2424–CG to IRACS.
-
-
IRACS will:
-
Input to IRACS (note journal number on F813).
-
Route blocks of F2424–CG with F813, part 1, to Data Conversion.
-
Route part 2 for SCCF processing upon receipt of F2424–CG, copy of acceptance letter, and F813.
-
Sort the acceptance letters with F2424–CG in each block by NMF account status.
-
Prepare NMF block summary on back of F813, part 2.
-
Reclassify and note journal number on documents.
-
Route F813, part 2, showing NMF block summary data to transcription for NMF-SCCF clearance.
-
Place the closed F2515 or F4710–CG in the current month hold file until month-end balancing.
-
In alphabetical order, place the closed F2515 or F4710–CG in the closed file after month-end balancing. This applies to the accounting area maintaining the OIC file.
-
-
The OIC deposit held in Account 4710 is only a portion of the amount offered by the taxpayer.
-
The processing of installment offers is similar to cash offers. CSCO prepares and forwards F2424–CG and the offer clerk prepares F813.
-
For NMF installment offers, the accounts covered by the offer are not combined and should be maintained individually through IDRS.
-
The following steps outline the processing of installment accounts:
-
Upon receipt of duplicate copies of F656, one copy of the acceptance letter, and F2424 or F2424-CG, the account card area makes a request to transfer the offer accounts from their current control status to the Installment Control status.
-
Prepare F3809 to write off the amount compromised.
Reminder:
For NMF accounts:
Use the applicable transaction code.
Show the applicable installment status code.
Attach copy of the accepted letter.
Number F3809.
Prepare F813.
Input NMF SCCF in normal manner.
-
Number the F2424–CG using tax class 6 and doc code 76, to transfer the deposit credit from the deposit fund to revenue receipts.
Reminder:
The first digit of the block number indicates the true tax class per IRM 3.17.46.
-
Input to IRACS through the Accounting Application main menu and the Deposit Control main menu. Reclassify, as applicable.
-
Note the journal number on F2515 or F4710–CG.
-
File in the closed-case file.
-
-
When the bank upon which the OIC deposit check is drawn does not honor the taxpayer's check, the taxpayer and field office technical services must be notified immediately.
-
A dishonored check penalty should be pursued and assessed, if applicable (per IRC Section 6657).
-
A dishonored check does not negate the offer or stop the field office investigation.
-
When a taxpayer moves to an address that is under the jurisdiction of another site while completing the terms of an installment offer and/or collateral agreement, the OIC will be transferred if a written request is received by the taxpayer.
-
The AOIC uses unique numbers to control and identify each offer. At this time, if an offer is transferred or removed from one AOIC Pyramid data base, it cannot be re-established on another site's Pyramid data base. Therefore, only under special circumstances will an offer be transferred.
-
The OIC unit in CSCO prepares and forwards F2158 showing TAS 20X6879, taxpayer identification information, and the address of the receiving site.
-
Follow the steps below when transferring:
-
Photocopy F2515 or F4710–CG.
-
Note on the copy the transfer date, the new taxpayer address, and the location of the site where the case is being transferred.
-
Send the original F2515 or F4710–CG, and the complete offer case file, to the new site via F2158.
-
NMF accounts are transferred via Form 514-B. The offer technician should send a copy with the offer case file.
-
-
Property seized in connection with enforced collection of taxes is documented by field office Collection, and reported to the site for accountability and control.
-
Receive F2433, part 7A, from Collection for each seizure, or supplemental seizure, made.
-
F2433s will be consecutively numbered by each field office and will show name and address of taxpayer, description of the property, location where stored, and inventory value of the property described.
-
An alpha (A,B,C etc.) will be placed after the original number on any supplemental F2433.
-
This number will be used to input the transaction to IRACS, and the supplemental(s) will be associated with the open case file.
-
The open case files will be researched to validate proper application when any action is taken on the seizure. When a seizure is completely resolved, place in an alpha closed file.
-
-
If a value cannot be immediately determined, 0 value or unknown will be indicated. For audit trail purposes, journalize these items to IRACS with 0 value.
-
Input F2433 to IRACS.
-
File F2433, part 7, in the open case file. The seized property subsidiary is maintained in IRACS in seizure number order.
-
-
Property seized and reported as described above may be:
-
Redeemed by the taxpayer or a third party,
-
Released to the taxpayer or a third party,
-
Sold to the highest bidder, or
-
Acquired by the U.S.
-
-
In the case of cash applied to the TDA by the revenue officer, redemption by taxpayer or a third party, or released to him or a third party, F2433, part 7B, appropriately marked, will be forwarded by Collection.
-
In the case of sale to highest bidder, F2433, part 7B, will be followed by F2436 (in duplicate).
-
In the case of acquisition by the U.S., F2433, part 7B, and F2436 (in duplicate) will be received for processing as acquired property.
-
Seized property will be included on the Field Office Inventory report issued monthly to the separate technical services area offices.
-
When seized property is disposed of by sale, redemption, release, or acquired by the U.S. Government, F2433, part 7B, will be used as the closure document to remove the item from the seized property inventory.
-
If F2433s are unprocessable due to missing information or illegibility, return them to the originating technical services area office by memo requesting corrections.
-
If F2433, part 7B, is received and a corresponding part 7A has not been received, request by memo that the originating technical services area office forward a copy of part 7A. Follow up with technical services area office on inquiries within 60 days, if copy has not been forwarded.
-
All F2433s, parts 7A and 7B, must be journalized within the accounting month that they are received.
-
-
Property seized to enforce collection of taxes will be offered for sale to the highest bidder at public sale, unless redeemed by the taxpayer or some third party, or released. Any expenses, relative to the sale of seized property, will be assessed against the taxpayer.
-
Proceeds from the sale of seized property will be placed in the deposit fund initially. These monies are deposited on SF 215-A to the deposit fund. F1963 and F2433, part 8A, will accompany the SF 215-A. Input SF 215-A.
-
Receive F2436 (in duplicate), showing how to dispose of the proceeds from the sale of seized property credited to the deposit fund account. Process F2436s as follows:
-
Verify that the amount shown on the total line under item 5, application of proceeds, is not in excess of the amount currently on deposit in Account 4720, as shown on the related F1983.
-
Prepare F2424 (debit and credit copies) for the amount being applied. Enter secondary and/or tertiary transaction codes, and amounts for accruals and expenses. In rare instances where expenses of sale exceed the receipt from sale, also prepare F2424 in Accounting for the amount of such excess, and route for input processing. Use date of deposit when preparing form.
-
Prepare F813 for credit copies of F2424 and route for normal processing.
-
Attach F2436s to debit F2424 to be filed in case file.
-
Input the transaction to IRACS.
-
-
All F2436s, must be processed within ten calendar days from the received date in Accounting. Upon receipt, date stamp F2436s to ensure proper timeliness control.
-
Receive memoranda in duplicate from Collection directing the disposition of any surplus proceeds. The two forms of disposition are refunds and unclaimed funds. Refunds result when a claim for surplus proceeds is allowed. If after one year, no claim is made for surplus proceeds, they become unclaimed funds. Process these memoranda within ten calendar days from date of receipt. Date stamp each memo when received in Accounting to ensure the proper timeliness control. Interest will be paid on all surplus proceeds in those cases exceeding 30 days. Collection will provide the date from which interest will be computed.
-
The following procedures are used to process refunds:
-
Verify with the appropriate DFR record that the amount to be refunded is currently on deposit in the deposit fund account. If DFR shows a lesser amount than authorized by the memo, confirm the correct refundable amount by contact with the Collection activity concerned.
-
Note on the refund memo 'Amount verified for refund as herein directed'.
-
Forward one copy of verified refund memo for preparation of F3753.
-
Forward F3753 for certification and preparation of SPS schedule.
-
Journalize SPS to IRACS.
-
-
The following procedures are used to process unclaimed funds from sale of seized property as described in IRM 3.17.63.26.12.2.
-
Receive memo stating that surplus proceeds should be applied to the Treasury general fund.
-
The appropriate Accounting function should transfer the unclaimed funds amount to BFC, ALC 2009–0003, Attn: Seized Asset Accountant, via IPAC. Use customer agency symbol 20X6879 to indicate that the disbursement has been made from the deposit fund. The remarks field on the transmission must indicate that the unclaimed funds amount should be applied to Treasury General Account 20–1099.
-
Journalize IPAC transaction. Debit Account 4720, Sales of Seized Property, deposit fund, and credit Account 5300, Disbursements, deposit fund.
-
Upon receipt of the IPAC transmission, BFC will apply and report the funds to the Treasury General Account 20–1099, Fines, Penalties and Forfeitures, not otherwise classified.
-
-
If a successful bidder for seized property fails to fulfill the contractual obligations within the prescribed period, the responsible Collection activity will prepare F2436. The actual amount paid by the purchaser will be entered in item 6b. In item 8, make the notation 'Purchaser bid $ for property, but failed to fulfill agreement to pay full bid price. Sale-null and void'. The deposit amount forfeited by the bidder will not be applied to the cost of sale nor to the taxpayer's liability. The forfeited amount will be transferred to Treasury Account 20–1099 from IRS Account 20X6879 via IPAC, as prescribed in IRM 3.17.79.
-
If Collection deems it appropriate to file suit against the purchaser to secure the full bid price, F2436 will be completed as above except item 8 will be noted 'Suit against purchaser' instead of 'Sale-null and void'. In this instance, the amount paid by the bidder will be credited to the taxpayer's outstanding liabilities.
-
Under certain conditions, real property may be redeemed after sale by payment to the purchaser of the amount paid plus interest. However, if the purchaser cannot be located in the county in which the property is situated, Collection may receive such payments, to be held in the deposit fund account for the use of the purchaser, his heirs, or assignees. These amounts will be documented on F1963 in the same manner as described above, and supported by a memo (in duplicate) giving the details of the redemption transaction. Process in the same manner as described above, with the following exceptions:
-
Substitute the redemption memo for F2433, part 7A.
-
In the preparation of F1963, also list the purchaser's name and last known address, and enter in the description column 'Redemption of real property after sale. Purchaser not located in county'.
-
F1963 will be filed as part of the case file.
-
Redemption payments will be input to IRACS.
-
-
The federal government may acquire title to real or personal property by bidding it in at the time of sale under levy action, or by other action. Income received for the use and possession of real property acquired by the U.S. Government after the period of redemption has expired, and any such income received from personal property after acquisition by the government, will be deposited as a courtesy deposit for BFC for credit to miscellaneous receipts of the Treasury. Any amounts transferred to BFC will be transferred to Treasury Account 20(FY)0913. Use Treasury Account 20–3220 to credit the following collections:
-
Rent of real property not otherwise classified, is for rent of real property and related facilities. It does not include equipment rental. These credits will not be available for application to any tax assessment.
-
Miscellaneous dividends and earnings, not otherwise classified, is for those earnings which cannot be classified under other account symbols: e.g., profit from the sale of personal or real property acquired by IRS. These credits will not be available for application to any tax assessment.
-
Rent of equipment and other personal property, is for rental income from equipment, and other personal property. These credits will not be available for application to any tax assessment.
-
-
Income received from real property during the period of seizure, and any income received from personal property until sold or acquired by the U.S. Government, belongs to the taxpayer. This income should be deposited as receipts, and applied to his outstanding liabilities in connection with which the seizure was made.
-
State law determines whether income received from real property during the period of redemption belongs to the taxpayer. Instructions as to the application of this income should be provided by Collection.
-
All other transactions including acquisition, subsequent redemption and subsequent sale, or other disposition of real or personal property will be recorded in IRACS.
-
Receive two copies of F2436 and F2433, part 7B, from technical services area office showing disposition of seized property by acquisition. All F2436s, must be processed within ten calendar days from the received date in Accounting. Upon receipt, date stamp F2436 to ensure proper timeliness control.
-
Receive F2433, part 7B, for processing as described in 3.17.63.26.12.6 above. The amount on F2436 does not have to agree with the amount on F2433, part 7A.
-
Prepare F2424 (debit and credit copy) for the amount being applied as shown on F2436. Enter secondary and/or tertiary transaction codes, and amounts for accruals and expenses shown under unassessed amts (dr) in item 5 of F2436. Use transaction code 700 for primary amount.
-
Prepare F813 for credit copies of F2424, and route for normal processing. Assign doc code 24 for F2424 DLNs.
-
Attach debit copy of F2424 to copy of F2436. Input to IRACS.
-
File copy of F2436 in an open case file, to support the DOI record in IRACS.
-
-
Real property acquired by the government through bid-in or other action, may be redeemed under certain conditions as provided by Collections' IRM instructions.
-
Receive memo posting document (in duplicate) identifying each redemption transaction. Since the taxpayer's account received credit for the bid-in value at the time of acquisition, any amount received through the redemption will be deposited as revenue receipts. They will not be applied to the taxpayer's account.
-
Verify that the amount of redemption (excluding interest) shown on the memo posting document is in agreement with the related DOI record subsidiary file. If not in agreement, contact originating office for reconciliation.
-
Use the acquired property window for input of redemption transactions.
-
-
When remittances are received representing offers of successful bidders, or initial payments under a deferred payment sale relating to acquired property, they will be deposited on SF 215-A and included on F1963. An explanatory memo (in duplicate) from Collection will accompany F1963 to support the entry.
-
Receive memo as described above.
-
Input to IRACS. Input to sales of seized property.
-
When total sale amount is received, transfer deposit fund monies to revenue receipts and apply payment to acquired property account.
-
-
When remittances are received representing total payment from a sale relating to acquired property, these amounts should be on SF 215-A, and deposited to revenue receipts. An explanatory memo (in duplicate) from Collection will accompany the deposit.
-
Number memo using tax class 6 and doc code 74.
-
Input to IRACS. NMF SCCF will be the credit entry.
-
Forward copy of F813(2-part) for establishment on SCCF.
-
Apply to acquired property account. If payment amount is less than recorded value of acquired property, input the difference as a loss. If payment is greater than the recorded value of the acquired property, input the difference as a profit.
-
-
Receive memo (in duplicate) from Collection reporting the forfeiture of any amount up to, and including, $200. In a sale of acquired property, this represents the amount for liquidated damages to the government by a prospective bidder for failure to bid, or failure of a successful bidder to fulfill his contractual obligations. The forfeiture memo could also show an amount to be refunded to the bidder or prospective bidder, e.g., cases involving an amount over $200, where the excess over $200 is to be refunded.
-
Verify that the forfeited amount and the refund amount, if any, shown on the memo are in the deposit fund as indicated on the applicable F1983. Note such information on all copies of the memo. Prepare a photocopy of the memo, if a refund is involved.
-
Prepare SF 1081 to transfer the amount being forfeited to miscellaneous receipts of the TAS 20(FY)0913. Attach copy of forfeiture memo to copy of SF 1081, and forward to regional fiscal operations. Route copy of forfeiture memo for posting and attachment to F1983.
-
-
Under certain conditions, property acquired by the government in payment of taxes may be disposed of by survey action authorizing the write-off by assignment for administrative use, or by transfer to another federal agency. In rare instances, acquired property may be subject to loss due to theft or destruction, prior to disposition. The removal of property valuations from the general ledger accounts under any of these conditions must be authorized by appropriate documentation from Collection.
-
Receive authorization memo (in duplicate) from Collection.
-
Verify that the amount shown in the memo is in agreement with the acquisition value on IRACS. In the event of a discrepancy, contact originating office for adjustment.
-
-
In rare instances, acquired property may be determined to have been subject to a prior lien-holder. This situation must be authorized by appropriate documentation from collection. The credit will not be reversed.
-
Receive authorization memo (in duplicate) from collection.
-
Verify that the amount shown in the memo is in agreement with the acquisition value of the F2436 in the open IRACS subsidiary file. In the event of discrepancy, contact originating office for adjustment.
-
-
Internal Revenue Code, Section 7654, provides that net individual collections by the U.S. that are attributable to Guam or Northern Mariana Islands (NMI) sources shall be credited to the treasury of Guam or NMI. In order to comply with this section of the Code, provisions have been made for taxpayers reporting an adjusted gross income of $50,000 or more with gross income of $5,000 or more derived from Guam or NMI sources to file Form 5074. Allocation of Individual Income Tax to Guam or The Commonwealth of the Northern Mariana Islands with F5074 will be transshipped to Austin for centralized processing. After being processed according to existing procedures for prompt audit, Compliance will complete the portion of the F5074 which indicates the net amount of tax due Guam or NMI. Compliance will forward a copy of the F5074 to Accounting as they are completed, original and adjusted. Accounting will maintain a list and file of all copies of F5074s.
-
Monthly, Accounting will:
-
Update the F5074 list with the name, SSN, and amount of tax due Guam or nMI from line 49 of the F5074s.
-
Total the amount from the entire list.
-
Verify the listing total with a separate summary from the F5074 on file.
-
-
Quarterly, Accounting will:
-
Prepare the final lists.
-
Verify that all F5074s are included on the final lists.
-
Transmit the final lists and copies of F5074, in duplicate, to OS:CFO:R:S in NO. The list must be received not later than the 15th day following the last day of each quarter. Any F5074s received after the preparation of the final list should be carried forward to the next quarter's list.
-
-
IRC sections 6402(c), (d), and (e) require that a taxpayer's overpayment be applied to past-due child support, past-due legally enforceable non-tax debts owed to federal agencies, and past-due legally enforceable state income tax obligations prior to making a refund. FMS' TOP will offset tax refunds for past-due child support, non-tax debts owed to federal agencies, and delinquent state income tax obligations. This will occur after a refund has been certified by the Service for payment to FMS, but before the refund check or direct deposit is issued.
-
For additional information on TOP, refer to IRM 21.4.6.
-
After 01/11/99, all DMF activity report recaps will reflect DMF reversals (TC 897) from prior-year DMF offsets.
-
Both IMF and BMF activity is combined on the DMF recaps and lists the total number and amounts of prior-year reversals (TC 897). These tapes are used to provide accounting data to IRACS for DMF reversal activity. The IMF and BMF SC Recaps should be balanced with the DMF recap on a weekly basis.
-
The DMF generates recap reports as follows:
-
By Agency, DMF–01 (weekly) and DMF–11 (monthly)
-
By Site, DMF–02 (weekly) and DMF–12 (monthly); and
-
By Subagency, DMF–04 (weekly) and DMF–14 (monthly).
-
-
Accounts Management will only debit federal agencies for reversals (TC 897) of offsets (TC 896) made prior to 01/11/99. All offsets and associated reversals that occur after 01/11/99 will be transmitted to the federal agencies via the IPAC option of GOALS by FMS.
-
When transferring funds, the Accounts section will debit the ALC for the reversal (TC 897) amount, and credit the campus' ALC. When this occurs, the campus should ensure that the proper journalizing is done.
-
The cut-off date for transferring funds through IPAC is the last day of the calendar month. However, IRACS processing continues to noon of the 2nd workday of the following month.
-
For each cycle of activity, compare the following to ensure correctness:
-
IMF and BMF recaps of assessments, abatements and other post-journalized documents,
-
DMF recap tape, and
-
IPAC transmission through GOALS.
-
-
These totals should match. If the totals do not match, contact a tax analyst in Accounts immediately for resolution and provide:
-
the cycle,
-
the amount of the discrepancy, and
-
the items that are out of balance.
-
-
Accounts section will research and initiate any corrective action required. The sites will be notified of any actions. The corrective action process will take approximately 12 cycles to complete.
-
Any differences should be recorded from week to week until the problem is resolved.
-
Occasionally, a computer-generated reversal cannot occur. Refer to IRM 21.4.6.4.9 and IRM 21.4.6.5.13.2, for exceptions.
-
Whenever a TOP/ DMF manual offset reversal transaction is required, Accounts Management (CAS) will prepare F3809, and forward the completed document to Accounting. A transcript of the account, and an explanation of the adjustment, must be included on the form, along with supporting documentation. As a reference, the IPAC document reference number will be included on F3809. In addition, if the offset reversal is for a DMF account, the agency and sub-agency code will be provided. Note: if F3809 is not received in Accounting to associate with the IPAC transmission, contact the NHQ Tax Analyst.
-
When F3809 is received in Accounting, they will determine if the form is correctly prepared.
If Then F3809 is correctly prepared, Accounting will 1. Sort, batch, and number the F3809 by tax class.
2. List all F3809 on F813.
3. Forward all F3809s and F813s to IRACS for processing.F3809 is not correctly prepared, Accounting will Contact Accounts Management for clarifications or corrections. -
Upon receipt of the F3809 and F813, IRACS will:
-
prepare a reconciliation sheet and journalize the total amount using the IRACS Accounting Application windows. See procedures (6) and (7) below.
-
Separate F3809, parts 1 and 2, and,
-
retain the debit part of F3809, which reflects Account 6330 activity, along with a copy of F813, for month-end balancing, and the audit trail;
-
forward the credit part of F3809, which reflects the taxpayer account activity, and F813, for transcription input of the TC 700 (batching will send to data for transcription, and to set up on SCCF).
-
-
When a manual reversal is required for a TOP/FMS offset, NHQ will notify FMS via letter requesting the reversal. FMS will credit IRS via an IPAC transmission at NHQ (ALC 2009–6500). Upon receipt, NHQ will credit (IPAC) the appropriate site, and e-mail the site DBA a copy of the FMS letter with the taxpayer identification information.
-
Upon receipt of the IPAC transmission at the site, Accounting will:
-
Use window 541 to debit Account 2910, IPACR Receipts, and credit Account 4985, IPACR Suspense.
-
-
Upon receipt of F3809 from Accounts Management, Accounting will:
-
Use window 469 to debit Account 4985, credit Account 6330, and do a reclass to debit 2410, and credit Account 2910.
-
Use window 400 to debit Account 6330, and credit the taxpayers' MF account according to the F3809 (example: IMF/Account 4220). After the F3809 is journalized, it will be released to Batching to post a credit (TC700) to the identified taxpayer for the amount on the F3809.
-
-
When the F3809 is journalized into IRACS, call the NHQ tax analyst. NHQ will then notify the appropriate requestor's office that the F3809 has been processed, and tell them to monitor for the posting of the credit to the taxpayers account.
-
Account 1550, Injured Spouse Claim-Rec, records receivables due IRS from FMS for injured spouse allocations. This account is updated through the IMF SC Recap. The control of injured spouse claims is the responsibility of the Accounts section. The FMS offset reversal dollar amount listed on the SC Recap, line 140, will be a debit to Account 1550.
-
The correction of a previously disallowed TOP reversal will be reflected on the SC Recap, FMS reversal corrections, line 141. Therefore, the dollar amount on line 141 of the SC Recap will be a credit to Account 1550.
-
FMS will transfer funds for this process (allowed TOP reversals) to Accounts section (ALC 20–09–6500) via IPAC. The Accounts section will distribute these funds via IPAC to each campus when the funds are received from FMS. The description field will state " FMS offset reversals (injured spouse allocations) -cycle 2000XX-accounting month-funds transferred from ALC 20–09–XX00." This IPAC billing will be a credit to Account 1550.
-
NHQ IRACS is responsible for reconciling Account 1550 with DMF.
-
FMS has developed a global cash concentration system (CASHLINK). This system consolidated seven collection systems that were used to report federal agencies' deposits (ie. Treasury's general accounts, Fedwire deposit system, FRBs, etc.). A feature of the new system is the agency access program which enables the agencies to access their deposit information on-line. The agency access PC software program packages, with users guide and passwords, have been provided for each campus. The PC program will be used for the following:
-
Resolve items on the CASHLINK error report
-
Research bank discrepancies
-
Reconcile the statement of difference
-
Access EFT, previously on the deposit message retrieval system .
-
-
CASHLINK will be available Monday through Friday, between 6:00 A.M. and 8:00 P.M. EST. CASHLINK is designed to retain deposit information for one year, and Fedwire message information for the prior processing month, and the current month-to-date. Agencies have been asked to transfer (download) the PC deposit information to their PC for research or to be manipulated as desired.
-
After receipt of the SF 224, FMS will transmit F6652s information electronically through GOALS. This information is not available on GOALS until FMS has completed their monthly balancing. This generally occurs about the 8th of each month. Once this information is available, ECC-DET will run the DT/DV Match. Under the Deposit-in-Transit System, the detail audit responsibility will be performed by the depositing agency rather than FMS. This is to be done consistently on a monthly basis following the report month. Before month-end processing, balance F6652 with Reports 035B and 035C.
-
Both the deposit and disbursement reconciliation reports are due to NHQthree workdays after the 18th of each month. All deposit and disbursement discrepancies for each site must be reported on the reconciliation report that was provided by NHQ. These reports will give all the detail records that make up the difference reported by FMS, with an explanation of what action has been taken to resolve each issue. The report must be faxed to NHQ's management & program analyst at 202–435–5597. The comprehensive history sheets must be available when requested from NHQ.
-
F6652 information and the DT/DV Support List are downloaded via GOALS. The F6652 shows the difference between the site totals and the totals submitted through the banking system. The monthly DT/DV Support List identifies the items that support the banking system total.
-
The DT/DV Match compares the individual records stored in IRACS during routine processing, with the deposit information processed by FMS on a monthly basis. Four reports are generated when ECC-DET runs the DT/DV Match:
-
DT/DV Match Treasury Records 035A
-
DT/DV Unmatched Treasury Records 035B
-
DT/DV Unmatched IRACS Records 035C
-
DT/DV Match Error Report 035D
-
-
The items listed on the above reports should have been identified and researched during the CASHLINK process (IRM 3.17.63.21.8). Maintain comprehensive history sheets. Note actions taken, date of action, name of contact, and descriptive information regarding the action taken.
Note:
Error items do not appear on the unmatched reports.
-
Deposit tickets dated the last day of the month may not be reported on CASHLINK by the depository until the following month. These items will appear on the Statement of Difference and are generally just an easily identified timing problem.
-
Statement of Difference will be received monthly until differences are reconciled.
-
All differencesmust be corrected. If IRACS input is correct, contact the bank or FMS to have it corrected. If IRACS input is incorrect, have it corrected on IRACS.
-
Adjustment DT/DVs carry the prepared date of the original deposit.
-
The depository may use the current date (instead of prepared date) when transmitting adjustment DT/DVs via CASHLINK. If this happens, contact FMS for corrective action. FMS will correct the date, as well as Doc-id, and ALC, if necessary. The FMS contact fax number is (202)874-8887.
-
Statements of Difference are downloaded via GOALS. F6652s are issued when the amount of the disbursement activity reported by an RFC for an ALC disagrees with the total disbursement amount reported by the ALC on the SF 224. Manual SF 1081 transactions are not reflected on the F6652. The site will resolve the differences with the appropriate disbursing center, using the GOALS RFC disbursement list and IPAC supporting list, and the IRACS Report 031.
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Treasury provides an account statement through GWA showing the net activity of accounts each month by TAS. The net amounts reported by each site will be listed on these account statements by ALC, and should agree with the amounts shown on each site's SF 224, under the applicable account for the equivalent period. If there is a difference, the detail records supporting the SF 224 must be researched to reconcile the difference. Copies of the reconciliation documentation should be retained with the applicable account statement.
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The site must resolve any differences with the appropriate ALC.
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At times, reconciliation of the account statement may carry into the next month due to the agency's processing of the SF 1081. If these unprocessed items are still unresolved after 90 days, they must be reported to NHQ.
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The site will resolve any errors using the following procedures:
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Determine if the agency journalized the item erroneously.
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Obtain a copy of missing documents and process, as needed.
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Each site will appoint an employee to serve as the DBA, and also appoint an alternate DBA. The DBA and no more than 2 alternate DBA's, shall have access to the IRACS DBA main menu. The alternate DBA's must be thoroughly proficient with the contents of IRM 3.17.63. The IRACS unit manager must sign certification that the alternate has completed the above requirements, and that s/he assumes responsibility for the alternate DBA's actions. ONLY the DBA and/or alternate DBA shall have access to the IRACS data base main menu.
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The DBA should have a thorough knowledge of double-entry accounting principles and theory, as employed in the IRS accounting control systems.
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The DBA will be assigned a password to allow access to the DBA menu. These windows will allow modification of a variety of data base information.
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Extreme caution must be exercised when changes are made to the data base information. The responsibilities of the DBA will include, but will not be limited to, the following examples:
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The DBA will correct records that contain errors in identification and status.
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Ensure that the balance and the integrity of the data base are maintained at all times.
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Ensure that default account period and default assessment date are properly set.
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Ensure that all daily and weekly tapes are processed timely, and prior to month-end closing procedures.
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In addition to the above responsibilities, other duties that the DBA performs include:
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Classifying an extensive variety of site accounting transactions by analyzing batched or individual documents, and verifying the accuracy and completeness of accounting data.
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Maintaining accounts by analyzing error messages displayed on the terminal and initiating the necessary corrective action, reviewing and analyzing the daily posting register to ensure that all IRS double-entry accrual accounting transactions have been properly posted, and initiating necessary corrective action, when necessary.
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Analyzing accounts by reviewing and balancing the IRACS computer-generated accounting reports to ensure that reports cross balance, and that all general ledger and subsidiary files agree with reported information.
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Participating in the reconciliation of the general ledger accounts with external subsidiary records in other units of the branch, balancing principal and interest with appropriate general ledger accounts, and reconciling both accounts with the appropriate accounting reports.
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Maintaining various logs for electronic data processing and data base corrections.
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Monitoring all electronic data input to and output from IRACS and making all necessary reversals.
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Establishing checklists for EOD, EOM, and new month.
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Reviewing the following data base lists for invalid entries, minus records, and initiating corrective action when necessary: field office records; loss and recovery records; individual detail records; confirmed DT/DVs; unconfirmed DT/DVs; FTD DT/DVs; and FTD daily wire records.
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Protecting the Goals password. If it is compromised, contact FMS immediately to have it changed. When an employee leaves, or is no longer assigned responsibility for using GOALS, a new password should also be requested from FMS.
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Reviewing of all reports and making sure DT/DV list equals Section III of SF 224, that the audit trail on F2162 includes all manual assessments, and that NTRR balances to general ledger accounts 5100, 5200, and 2400.
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Making sure all accounts are in correct status in preparation for EOM processing, and monitoring accounts to be maintained in zero balance.
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Reviewing the unpulled assessments daily.
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Refer to IRM 3.17.50 for additional DBA information.
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There are five options available to the DBA for maintaining the IRACS data base static tables. The DBA options allow changes in accounting period, assessment date, or accountable officer.
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DBA modify sub menu—This menu allows modification to certain records that have posted to the IRACS general ledger accounts, but contain errors in identification and status. As a general rule, maintain source journal data can be modified, however, ledger classification or dollar amount cannot be modified. Erroneous ledger classification or dollar amount data require a reversal journal action. All modifications begin with journal number series 902. Modifications are not allowed to CASHLINK records or for batch activities.
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Each modification is limited to one correction at a time. If multiple errors occur on one journal, one correction at a time must be performed. Prepare date must be the last item modified for multiple corrections.
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If modification is done incorrectly, correction modification must be made to the original journal. The system will not allow modifications to 902 journal series.
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Disregard any alpha characters on high or low check numbers; only numeric input is allowed.
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DBA reversal sub menu — This menu is used to reverse a journal entry which has posted in error to the general ledger accounts. A reversal journal action reverses all erroneous postings to all accounts, posted in error by the original journal entry. All reversal journal number series begin with 903.
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Reversal journals must be approved by a management official.
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To ensure an adequate audit trail, notate the original journal number in the message text on the reversal journal. Include the original number in the message section of the re-input journal.
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When reversing a pulled or confirmed record, the pulled or confirmed posting must be reversed before the original journal can be reversed.
NOTE: The 903 reversal journal can only be used to reverse a journal action that was input in the same accounting period.
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DBA NTRR sub-menu — This menu is used to increase or decrease NTRR line data. NTRR line data adjustments will post as entered. There are no validity checks in place to reject erroneous postings. However, an erroneous posting can be reversed through the DBA reversal sub menu.
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DBA collection sub-menu — This menu provides for the control of funds during the transfer of accountability from one site official to another.
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The undeposited collections sub-menu windows allow for the input to Account 7500, of memo copies of deposit tickets marked undeposited collections, and amounts from the field office listings, to cover tax payments received on the transfer date of the site official, but not submitted to the depository that day. The deposit windows allow for the input of deposit tickets related to previously input undeposited collection payments.
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Deposit sub-menu — This menu provides for the control of funds during the transfer of accountability from one site official to another. The DBA deposit windows allow for the input of deposit tickets related to previously input undeposited collection payments.
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The EOD reports are generated to ensure that the data base is in balance and ready to be backed up at ECC-DET. See IRM 3.17.63.2.4.1 for a list of the daily reports available.
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Perform the normal EOD procedures. Verify completion of all window postings with IRACS technicians, including the FTD CRL. Pull required daily reports such as the FTD daily wire and summary records of assessment. Review the daily posting summary, daily and future trial balances, and NTRR report.
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These reports can all be generated at once or selected individually. Validate each report. Records will remain on the data base for up to five years.
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The IRACS data base will automatically be backed up daily by EDD-DET as part of normal mainframe procedures.
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IRACS programs and data files will also automatically be backed up daily by ECC-DET if they have been changed on that day as part of routine procedure.
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When all transactions for a particular accounting month have been input, including perfection and re-input of errors needing correction, several procedures must be followed to close out the month, generate reports, and set up the data base for the new month's transactions. Due to the initiative set forth by the Secretary of the Treasury, these procedures should be started on the second workday after the close of the accounting month.
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If IRACS is unavailable on EOM processing day, contact NHQ immediately. NHQ has the capability to pull the sites' SFs 224, and fax them to the site.
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If GOALS is unavailable to transmit the SF 224, contact NHQ immediately.
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It is a requirement to use the EOM check list that was provided to all the sites. The check list must be signed by the operation manager before the transmission of the SF 224. See IRM 3.17.243.
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Perform the normal EOD procedures. See IRM 3.17.63.27.2. If there is an imbalance on the daily trial balance, make necessary corrections and rerun EOD procedures. When all corrections have been made, and a balanced daily trial balance has been produced, the data base is ready to run month end reports. See IRM 3.17.63.2.4.2 for a listing of the month-end reports.
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The field office inventory detail inventory report is available every month. Verification by the field is required semi-annually. For the months of March and September, prepare a two-way memo to each area requesting confirmation from them.
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Month-ending September will require that the fiscal year-end reports are selected from the sub-menu 56, after month-end reports have been generated and validated.
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After all reports are generated, the DBA must change the accounting period, and default assessment date, for the new accounting month.
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The system will again be backed up during normal EOD procedures at ECC-DET.
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One copy of each report will be generated. Upon completion, each report must be reviewed for accuracy. If there are any problems, the DBA must initiate corrective action, and regenerate a corrected report.
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The SC loss/shortage/recovery support list (report 0577) should be faxed to the losses and shortages analyst at (215)–516–2892.
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If there are any pen and ink changes made to Section I of SF 224, fax a copy to the revenue reconciliation analyst at 202– 435–5572 no later than the 4th workday of the new month.
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After SF 224 is transmitted on GOALS, report via e-mail the total dollar amount reported in Section I for appropriation fund 20X5080.1 to PrincipalAccountingTeam@bpd.treas.gov and frt@bpd.treas.gov. The e-mail must be sent no later than COB on the second work day of the new month, and contain the following information:
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Site name
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ALC
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Accounting period ending
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Total dollar amount reported on SF 224 in Section I for Appropriation Fund 20X5080.1 (must report zero dollars).
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Upon completion of month-end reporting, the data base will be ready to begin posting. The only thing the DBA will have to do first is set the date for the new accounting month, and the default date for assessments.
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Records will no longer be deleted during EOM processing. All records will be retained in the data base for up to five years, and will be available for research at any time on command.
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Cumulative amounts will be calculated from individual records and generated, based on the date parameters specified when generating reports.
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There are no longer current and future indicators. Records will be compared to the set accounting date to determine if a record is for a future period.
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Records will be designated as reported or not reported within the data base, in order to differentiate what should be included in the next reporting cycle.
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There are no longer any summary records within the data base. Again, summaries will be computed based on the sum or net of individual records.
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All records will be related to specific general ledger accounts. It is now possible to generate all the detail records associated with a general ledger account or a summary record of assessment, etc.
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Fiscal year-end reports should be requested immediately after verifying September month-end reports.
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Reports are generated from the reports main menu icon, fiscal year-end reports sub-menu. All reports can be requested at once by selecting the All option, or individual reports may be run by selecting their individual titles. The All option will zero out the nominal accounts, create a journal 199, and produce FY F2162, and cum trial balance. The MTrial must be verified to assure that all nominal accounts are zero, and that the real accounts have been rolled over correctly.
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All nominal account balances are closed out to General Ledger Account 9999.