Cash and non-cash remittances found outside of the Receipt and Control Extracting and Deposit secured/restricted (Limited) area are discovered remittances. Cash found inside the Receipt and Control Extracting secured/restricted (Limited) area is also considered a "Discovered Remittance."

Purpose of the program: To ensure taxpayer payments that for some reason were not processed through the normal processing of remittances are identified and expedited for remittance processing in the appropriate secured manner when discovered. This expeditious and secure process is important to ensure that taxpayer accounts are updated as quickly as possible to prevent any detrimental circumstances that may occur because of the untimely processing of the payment.

Audience: This IRM prescribes procedures for all campus employees and Industry Partners who discover remittances outside of the mail opening operation and deposit areas in the restricted (Limited) area of the Submission Processing Receipt and Control Operations. This IRM also prescribes procedures for discovered cash inside the Extracting area of the restricted (Limited) area of Submission Processing Receipt and Control Operations.

Policy Owner: Director Submission Processing.

Program Owner: Submission Processing Headquarters, Accounting and Tax Payment Branch, Accounting and Deposit Section Section.

Primary Stakeholders: The Submission Processing Receipt and Control Deposit function.

This IRM is updated and published annually after review and concurrence by impacted stakeholders according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMDs).

Functional areas are responsible for reviewing the information in this IRM annually to ensure accuracy, consistency, and to promote effective program administration.

All campus employees identifying discovered remittances that are cash or gold coins (U.S. currency only,) or other items of value, including personal checks, money orders, cashier’s checks, business checks, certified checks, voucher checks, treasury checks, draft/postcard type checks, travelers checks, and credit, debit, and gift cards, must immediately notify their unit manager or designee. A manager or designee must be available at all times during business hours to receive and immediately log the discovered remittances on Form 4287, Record of Discovered Remittances. The cash must be counted by the unit manager or designee and witnessed by the discovering employee when found in any function. Notate on Form 4287 in the "Name" column with the following, "Cash counted and verified." When needed, more than one line can be used to record information on Form 4287. Ensure the discovering employee and unit manager initial the Form 4287 in the appropriate column to verify the cash has been counted and verified.

If the remittance is attached to a tax return, the remittance and tax return must be processed together following the instructions below.

Campus employees must prepare a Form 3244, Payment Posting Voucher, for every taxpayer associated with the discovered remittance. Locally, Receipt and Control will coordinate Form 3244 preparation responsibilities with pipeline production operations. The current version of Form 3244 will be used and can be found on the Publishing Website at Form 3244 Preparation of Form 3244 is outlined below. The remittance and Form 3244 must then be processed together following further instructions below:

If the remittance is found with no tax return and you are unable to determine the correct taxpayer account, the campus employee must prepare a Form 3244See IRM 3.8.46.3(3) above) with as much information as possible. The Receipt and Control function will apply the payment utilizing Unidentified procedures in IRM 3.8.45.11.3, Unidentified Remittances.

Discovered remittances must be forwarded to Receipt and Control daily with the Part 1 (Redirect to Originator after R&C) white copy and Part 2 (Retain by R&C) pink copy of the three part Form 4287. Discoverer will retain part 3 (Retain by Originator) yellow copy. The electronic Form 4287 found on the Electronic Publishing Web Site should also be used. Please ensure the correct copy of the three part form is being retained or delivered. If utilizing the electronic version, ensure all parts of Form 4287 are individually dated and initialed by all parties, or carbon paper may be utilized.

All discovered remittances that are 30 days or older must be researched by the Payment Perfection Unit (PPU) in Receipt and Control, if discovered in a Submission Processing Campus. If the remittance is discovered at a Campus Support location, the Campus Support Payment Perfection function will conduct the research. If appropriate, action must be taken to prevent adverse taxpayer impact. Refer to IRM 3.8.45.5.7.1(1), Discovered Remittances Over 30 Days Old.

Each unit manager or designee will maintain a daily Form 4287, Record of Discovered Remittances, to record discovered remittances.

A sequential number beginning with 001 must be assigned to each Form 4287 that is prepared throughout the current January through December calendar year. (i.e., if 50 Forms 4287 have been completed throughout the year they must be numbered 001 thru 050). The number must be placed in the upper left hand corner of Form 4287.

Before any sealed package containing a Form 4287 and related discovered remittances can be released to the designated employee that will hand-deliver the package to another employee or site, the designated employee must complete Form 4287B, Form 4287 Courier Log for Discovered Remittances. The number assigned to the Form 4287 must be noted in the first column of the Form 4287B.

The area that initiates the Form 4287 will retain the Form 4287 and the Form 4287B for two years after the end of the processing year.

Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

IRM Deviation Statement: IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, and elevated through appropriate channels for executive approval.

All campus employees identifying discovered remittances that are cash or other items of value, including credit, debit and gift cards must immediately notify their unit manager or designee. A manager or designee must be available at all times during business hours to receive and immediately log the discovered remittances on Form 4287. The cash must be counted by the unit manager or designee and witnessed by the discovering employee when found in any function. After counting discovered cash, notate "Cash counted and verified" in the "Name" column of Form 4287. Ensure the discovering employee and unit manager initial the Form 4287 in the appropriate column to verify the cash has been counted and verified.

When postage stamps are discovered and their total value is less than $3.00, cross through the stamps and permanently affix them to the related return or document without obscuring taxpayer information or data. Retain the return or document with the regular work.

Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

Any processing employee identifying cash or items of value, including credit cards, debit and gift cards must immediately notify the unit manager or designee.

The cash must be counted by the unit manager or designee and witnessed by the discovering employee.

The manager or designee will immediately record the remittance on the daily cash or other items of value on Form 4287.

The manager or designee will place the cash or item of value into a sealed envelope.

A manager or designee must be available at all times during business hours to receive remittances.

If not delivered immediately to the Deposit Unit, the manager or designee must store the envelope in a locked safe (If the amount to be stored is less than $1,000, a locked security container may be used).

safe-type container is one of the following:

At least once per day (or once weekly for campuses depositing cash on a weekly basis), prior to close of business, a clerk must hand-deliver the sealed envelopes and Part 1 and Part 2 of the daily cash or other items of value Form 4287 to the Deposit Unit; or a clerk from the Deposit Unit should pick up the sealed envelopes and Part 1 and Part 2 of the daily cash or other items of value Form 4287. The initiating manager will retain Part 3 of Form 4287 for their records. The clerk must complete Form 4287B, Form 4287 Courier Log for Discovered Remittances, before the sealed envelopes are released for hand-delivering to the Deposit Unit. The number assigned to Form 4287 must be shown in the first column of Form 4287B.

The sealed envelopes must be opened in the presence of the Extraction Unit and the Deposit Unit employees.

If no cash or items of value are found, a SEPARATE Form 4287 must be prepared for EACH BUSINESS DAY that no cash or items of value were discovered. "No Cash" must be annotated in large letters across the form along with the date.

All items noted on the copy of the daily cash or other items of value Form 4287 will be initialed by the Deposit Unit clerk to acknowledge receipt.

If items are missing, the employees will immediately notify the Deposit Unit manager. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

Part 1 of the daily Form 4287 with the initials acknowledging receipt will be returned to the sending unit.

Within seven business days after the date the cash or other items of value were hand-delivered to Deposit or picked up by Deposit, the unit manager will reconcile Part 1 of the Form 4287 to Part 3. Once this is done, the unit manager will initial and date the box at the bottom of Part 1 and staple Part 1 and Part 3 together. The purpose of the reconciliation is to ensure that all cash or items of value sent to the designated Receipt and Control function were received.

Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

Both Part 1 and Part 3 of the daily Form 4287 will be retained for two years after the end of the processing year.

Using the latest date shown on Form 4287B, Form 4287 Courier Log for Discovered Remittances, as the basis, the function that initiates the Form 4287B must retain the Form 4287B for two years after the end of the processing year.

Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

The manager or designee will immediately record the remittance on the daily Form 4287.

A manager or designee must be available at all times during business hours to receive remittances.

A single unit, branch or operation may be designated to receive remittances from several surrounding units.

After immediately recording the remittance on the daily Form 4287, the remittances and Form 4287 will be placed in a locked container.

A locked container is "any metal container with riveted or welded seams which is locked and to which the keys and combinations are controlled." Keys to the locked container must never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the manager or manager designee when not in use.

At least once per day, the manager or designee will remove the remittances, Form 3244 See IRM 3.8.46.1(4) and (5)) and Part 1 and Part 2 of Form 4287 (Part 3 will be retained by the manager) from the locked container and must be secured using one of the following methods:

The inside envelope or box is required to contain the following:

The outside envelope, box or lockable canvas bag is required to contain the following:

Form 4287B, Form 4287 Courier Log for Discovered Remittances, must be completed by the courier before the sealed envelope is released to Campus Support. The number assigned to the Form 4287 must be shown in the first column of Form 4287B.

Campus Support has capability to process payments through Remittance Strategy for Paper Check Conversion (RSPCC) and must process discovered remittances if possible. Campus Support instructions for processing discovered remittances can be found in IRM 21.1.7.9.20, Discovered Remittance. If for some reason the discovered remittance cannot be processed through RSPCC, the remittances, Form 3244, Part 1 and Part 2 of the Form 4287 must be sent by overnight traceable mail to the designated Receipt and Control site. The initiating manager will retain Part 3 of Form 4287 for their records.

The remittances must be stored in a locked container, as described in IRM 3.8.46.4(4) and (5), until picked up by the overnight mail company. Remittances are not to be left unattended pending pickup by the overnight mail company.

The receiving employee within Submission Processing Receipt and Control will initial beside each of the remittances on the Form 4287 to indicate the remittance has been received and the information on the Form 4287 is correct.

On the day of receipt, the receiving employee will return Part 1 of Form 4287 to the sending unit manager or designee.

Within seven business days after the date the discovered remittance was sent to Submission Processing Receipt and Control, the unit manager will reconcile Part 1 of the Form 4287 to Part 3. Once this has been done, the unit manager will initial and date the box at the bottom of Part 1 and staple Part 1 and Part 3 together. The purpose of the reconciliation is to ensure that all remittances sent to the designated Receipt and Control function were received. If unable to obtain Part 1 back from Receipt and Control, ensure IDRS research is completed verifying the payment has posted to the taxpayer's account. Attach the IDRS print to Part 3 of the Form 4287. If the payment has not posted to the taxpayer's account or has not been identified in Unpostables function inventory, the unit manager will report any discrepancies to the Submission Processing Receipt and Control manager and document the contact. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting.

Both Part 1 and Part 3 of Form 4287 will be retained for two years after the end of the processing year.

Using the latest date shown on the Form 4287B as the basis, the function that initiates the Form 4287B must retain the Form 4287B for two years after the end of the processing year.

Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

Remittances collected by field office employees are not discovered remittances for purposes of IRM 3.8.46. Field office employees that collect remittances must transmit collected remittances on the day of receipt or as soon as possible the next business day. Refer to IRM 3.8.47.5.4, Procedures for Sending Tax Receipts to a Submission Processing Center, and Addresses for Field Office Employee-Collected Remittances.

Industry Partners identifying discovered remittances that are cash or gold coins (U.S. currency only,) or other items of value, including personal checks, money orders, cashier’s checks, business checks, certified checks, voucher checks, treasury checks, draft/postcard type checks, travelers checks, and credit, debit, and gift cards, must immediately notify their Industry Partners manager or designee and immediately notated on Form 4287, Record of Discovered Remittance.

If cash is discovered, the cash must be counted by the Industry Partner manager or designee and witnessed by the discovering employee when found. Notate on Form 4287, in the "Name" column with the following, "Cash counted and verified." When needed, more than one line can be used to record information on Form 4287. Ensure the discovering employee and Industry Partner manager initial the Form 4287 in the appropriate column (Discoverer columns) to verify the cash has been counted and verified.

When a credit, debit, or gift card is discovered, record only the last four digits of the credit, debit, or gift card number, the expiration date, the taxpayer's name and social security number (SSN) on Form 4287. (The last four digits of the credit, debit, or gift card number and the expiration date will be entered in the "Type of Remit" column on Form 4287).

If the remittance is attached to a tax return, the remittance and tax return must be processed together following the instructions below.

After immediately recording the remittance on the Form 4287, the remittances will be placed in a locked container. A locked container is "any metal container with riveted or welded seams which is locked and to which the keys are controlled." Keys to the locked container must never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the Industry Partner manager or manager designee when not in use.

A sequential number beginning with 001 must be assigned to each Form 4287 that is prepared throughout the current January through December calendar year. (i.e., if 50 Forms 4287 have been completed throughout the year they will be numbered 001 thru 050). The number will be placed in the upper left hand corner of Form 4287.

Discovered Remittances must be shipped to the appropriate campus the same day as they are discovered using overnight traceable carrier (UPS, FED-EX, or DHL) along with Form 4287. Please ensure all parts of Form 4287 are individually dated and digitally signed by all parties. The Industry Partner manager or designee will remove the remittances from the locked security container and secure in double-wrapped and double-sealed opaque(not see through) paper envelopes or boxes. The inside envelope or box is required to contain the following:

The outside envelope, or box is required to contain the following:

Form 4287B, Form 4287 Courier Log for Discovered Remittances, must be completed by the Industry Partner before the sealed envelope is released to UPS, FED-EX, or DHL. The number assigned to the Form 4287 must be shown in the first column of Form 4287B.

Form 4287B will be maintained on the Industry Partners Share Point site Discovered Remittance folder and can be added to each time a package is mailed to an IRS campus or office.

Before any sealed package containing a Form 4287 and related discovered remittances can be released to UPS, Fed-Ex, or DHL, the Industry Partner designated employee must complete Form 4287B Courier Log for Discovered Remittances. The number assigned to the Form 4287 (The number entered in the top left margin) must be noted in the first column of the Form 4287B.

Please send an email containing the UPS, Fed-EX, or DHL tracking number, and attach PDF copies of Form 4287 and all copies of Form 3210 except the originator copy to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The originator or sender (Industry Partner), who is accountable until the funds are received at the destination, must establish a control to ensure delivery of tax receipts and continually follow up until the package is confirmed as received at the destination.

The sender (Industry Partner) must reconcile Form 4287 within seven (7) business days after the date the discovered remittance was sent to IRS to ensure the discovered remittance was received by IRS Receipt and Control for processing.

Follow up with ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if Form 4287 has not been uploaded to the Discovered Remittance Folder with Initials within seven (7) business days

) The Form 4287 will be maintained on the Industry Partner’s SharePoint site Discovered Remittance folder for two years after the end of the processing year, as required in Document 12990, IRS Records Control Schedule (RCS) 29, Item 137, to prevent inadvertent/unlawful destruction of records. Form 4287B will be maintained on paper and stored by the IRM 3.8.46.

Industry Partner management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed

Submission Processing Campus Addresses for Discovered Remittances only:

Internal Revenue Service
ATTN: Manual Deposit Manager
M/S 6056
3651 S. IH 35
Austin, TX 78741

Internal Revenue Service
ATTN: Manual Deposit Manager
M/S 7777
333 W. Pershing Road
Kansas City, MO 64108-4302

Internal Revenue Service
ATTN: Pre-Batch Deposit Manager
M/S 6062
1973 N Rulon White Blvd.
Ogden, UT 84201

Taxpayers or their representative are notified by letter from Criminal Investigation (CI) to submit the full voluntary disclosure submission to the Austin Campus to participate in the Voluntary Disclosure Practice (VDP) program. The submission must be sent in two separate parts, payments to Stop 1919, and other items to Stop 4301. See IRM 3.8.46.6.6(5) for complete addresses.

If a taxpayer remittance is sent inadvertently to the CI Lead Development Center (LDC), then it is a discovered remittance. The manager will immediately record the remittance on the daily Form 4287 Record of Discovered Remittances,.

After immediately recording the remittance on the daily Form 4287, the remittances will be placed in a locked container. A locked container is “any metal container with riveted or welded seams which is locked and to which the keys and combinations are controlled.” Keys to the locked container must never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the manager or manager designee when not in use.

At least once per day, the manager or designee will remove the remittances from the locked container, and complete Form 14350, Voluntary Disclosure Practice Payment Posting Voucher, Form 14350. Use Form 14350 (in lieu of Form 3244 Payment Posting Voucher). Form 14350 has a tabulating feature and space to record payment amounts for multiple tax years.

Send Part 1 and Part 2 of Form 4287 Record of Discovered Remittances. (Part 3 will be retained by the manager) and send the completed Form 4287, remittances atop each completed Form 14350, via overnight traceable method to:

Internal Revenue Service
3651 S. I H 35 Stop 1919 AUSC
Austin, TX 78741
ATTN: Voluntary Disclosure Practice

All other required items from taxpayers must be sent to:

Internal Revenue Service
3651 S. I H 35 Stop 4301 AUSC
Austin, TX 78741
ATTN: Voluntary Disclosure Practice

The remittances must be secured for shipment using one of the following methods:

The inside envelope or box and the outside envelope, box or canvas bag is required to contain the following:

On the day of receipt, the receiving Austin Campus employee will send Part 1 of Form 4287 back to the LDC to the attention of the originator.

Within seven business days after the date the discovered remittance was sent to the Austin Voluntary Disclosure Practice address, the LDC manager will reconcile Part 1 of the Form 4287 to Part 3. This is done by the unit manager initialing and dating the box at the bottom of Part 1 and stapling Part 1 and Part 3 together. The purpose of the reconciliation is to ensure that all remittances sent to the Austin Voluntary Disclosure Practice address located in the Austin Receipt and Control function were received. If unable to obtain Part 1 back from Austin Receipt and Control, ensure IDRS research is completed verifying the payment has posted to the taxpayer's account. Attach the IDRS print to Part 3 of the Form 4287. If the payment has not posted to the taxpayer's account or has not been identified in Unpostables function inventory, the unit manager will report any discrepancies to the Submission Processing Receipt and Control manager and document the contact. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

Both Part 1 and Part 3 of Form 4287 will be retained for two years after the end of the processing year.

Program Reviews are mission critical to the health of accounting and deposit programs to ensure integrity of the general ledger accounts and accuracy of the financial statements. It is essential that each function conducts its operations with an emphasis on mitigating risks, identifying best practices, and adhering to IRM requirements. An objective assessment of program compliance, including all applicable procedures and guidelines, is necessary to ensure that adequate internal controls are in place.

Program Effectiveness: The program effectiveness includes conducting reviews and analysis to detect and identify material or significant deficiencies that could adversely impact IRS audits and/or financial statements. These reviews are necessary to ensure Submission Processing is conducting business as prescribed in the governing IRM's and are designed to identify potential internal control deficiencies that may impair the integrity of the general ledger accounts and/or financial reporting.

Program Reviews: A program review ensures actions are in accordance with IRM procedures. SP HQ Accounting and Deposit Section conducts program reviews to verify compliance with IRM requirements, address TIGTA/GAO findings, identify risks to internal controls, address error trends, and training needs, as needed. In addition, the reviews ensure IRM procedures are applicable, adequate, and adhere to Department of the Treasury and/or IRS guidelines.

Corrective Action Plan: The Corrective Action Plan is a plan of action that is developed to resolve the condition that resulted in noncompliance with IRM requirements. In addition, an effective Corrective Action Plan identifies the root cause of problems to minimize or eliminate their recurrence. Corrective actions are developed, implemented, managed, and monitored to promote program improvement.

Vulnerability Assessments: A vulnerability assessment identifies, quantifies, and prioritizes the vulnerabilities of government programs and assets including systems/technology, property, funds, and employees. Vulnerability assessments should be conducted on any business process to assess the risks of business failure and/or weakness caused by internal or external factors.

Mail Stop# - Mail Stop of unit/operation discovering the remittance. Needed for Receipt and Control to return original Form 4287 (Redirect to Originator after RC) to originator.

Unit - Needed to identify which unit within an operation will receive the original Form 4287 back from Receipt and Control for reconciliation.

Telephone # - Telephone number of the function completing Form 4287, needed by Receipt and Control for any questions concerning information on the Form 4287.

Today’s Date - Record immediately the date remittance was discovered.

Type of Doc - If remittance is discovered with a document, enter type of document (Form 941, Form 1040, etc.) or enter information in the Form Number/MFT box from Form 3244.

Tax Period - Tax Period of the document or from the Tax Period box from Form 3244.

Type of Remit - Check, money order, etc.

Amount of Remit - Money amount of the discovered remittance.

Received Date - IRS received date stamped on document or date entered in the Transaction/Received Date box from Form 3244.

Name - Name of individual taxpayer or business.

SSN/EIN - Taxpayer identification number (TIN) of individual taxpayer or business.

Discoverer Name - Name of employee that discovered the remit.

Discoverer Supervisor - Initials of management official from discovering function to verify cash has been counted/verified, the form is completed with all available information associated with the discovered remittance and the package is ready for release to Receipt and Control.

Rec’d Unit Initial - Initials of Receipt and Control Operations employee receiving the discovered remittance from the discovering function.

Rec’d Unit Date - Date the Receipt and Control Operations employee received the discovered remittance from the discovering function.

Manager’s Reconciliation Initial and Date - The white top copy of Form 4287 labeled at the bottom of the Form as (Redirect to Originator after RC) will be received back from the Receipt and Control Operations after they accept the discovered remittances. It must be reconciled by the responsible manager against the yellow copy of Form 4287 labeled as (Retain by Originator). Reconciliation is needed to ensure the Form 4287 is received back from Receipt and Control with their initials and date verifying they have received the discovered remittances. Reconciliation of Form 4287 must be performed within seven business days after the date the discovered remittance was sent to Receipt and Control.

A sequential number beginning with 001 must be assigned to each Form 4287 that is prepared throughout the current January through December calendar year. (i.e., if 50 Forms 4287 have been completed throughout the year they must be numbered 001 thru 050). The number will be placed in the upper left hand corner of Form 4287.