When a payment attempts to post to an account as a TC 610 transaction (remittance with return) and no account established, the transaction resequences with a resequence code 24.

The payment continues to resequence if no account is established until ECC-MTC cycle 29 when the transaction goes unpostable with an unpostable code (UPC) 151.

After ECC-MTC cycle 29, if a TC 610 attempts to post to an account without an established entity, the payment resequences (resequence code 24) for three cycles prior to going unpostable with UPC 151.

Telephone and Taxpayer Assistance Center instructions:

Correspondence or referral (Form 4442) instructions:

Spousal payments resequence from the spouse’s account to the joint account, providing the joint account is already established and one of the following conditions is present:

The systemic transfer process is triggered when either of the following occur:

Systemic Transfers - When the systemic transfer occurs, the Julian Date of the DLN changes to 888 to uniquely identify the transaction as an electronic payment transfer. The transfer of the electronic payment utilizes TC 666/667 processing.

Systemic Processing - Systemic spousal payment transfers can occur daily if the account (or accounts) qualify for daily processing. If not, the transfers take place during weekly processing, normally on DD 05 (Thursday). This systemic processing will not occur if:

Manual Transfers - prior to manually transferring a spousal payment, research CC IMFOLQ under the ‘From’ and ‘To’ TINs for resequencing transactions. Also, review the primary account for the presence of any previous systemic or manual transfers. If the payment in question has not been transferred, manually input a credit transfer of the payment to the joint account following existing procedures in IRM 21.5.8.4, IDRS Guidelines for Credit Transfers.

If the systemic transfer fails (there are many reasons the systemic transfer can fail) a TC 667 for zero will post to the spouse’s account. This will generate an Electronic Spousal Payment (ELECSPPAY) Transcript to Brookhaven CSCO AMS and they will address the spousal payments per instructions found in IRM 5.19.10.5.10, Electronic Spousal Payment (ELECSPPAY) Transcripts.

Additional information is available in IRM 5.19.10.5.10, Electronic Spousal Payment (ELECSPPAY) Transcripts, and IRM 21.5.6.4.7, D- Freeze.

Form 4446, Payment Tracer Research Record, is used to refer a payment tracer case to the Hardcore Payment Tracer Function (HPTF) after performing preliminary research and reviewing information provided by the taxpayer/bank. Refer to IRM 21.5.7.4.2 (2), Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information. Do not use Form 4442, Inquiry Referral, for payment tracer case referrals to HPTF.

Refer to IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for procedures to complete the Form 4446 and routing to HPTF.

FTD cases must have a legible copy of the front and back of the cancelled payment attached to the Form 4446.

When the missing payment is in the Unidentified Remittance File (URF) or Excess Collection File (XSF), application of the credit cannot be made by persons outside the Unidentified/Excess Collection function. Form 8765, IDRS Control File Credit Application, is used to request Unidentified/Excess to transfer money from the URF and XSF to the taxpayer's account.

The request must identify where to apply the money and supply the documentation from the taxpayer, including:

For additional information about preparing the Form 8765, refer to IRM 3.17.10.3.10 (5), Applying Credit to a Taxpayer's Account, and IRM 3.17.220.2.12, Applying Amounts from the XSF--General, for additional information.

For statute expired/imminent periods, refer to IRM 25.6.1.7.3.3 (4), Transferring Credits From the XSF.

Only HPTF prepares Form 3809, Miscellaneous Adjustment Voucher, for a TC 760, Substantiated Credit Payment Allowance, to:

IRS may reimburse taxpayers for bank charges resulting from loss or misplacement of taxpayers’ checks during processing.

Taxpayers file Form 8546, Claim for Reimbursement of Bank Charges, in this situation.

Follow procedures in IRM 20.1.4.24.2, Misdated Deposits.

Encoding errors occur when a check is encoded for a different amount than the amount for which the check was written. Improper handling of remittances causes a discrepancy between the records of the depository bank and the campus.

Piggy-back checks are two checks attached that are run through the encoding machine as one. The front check is encoded on the face only. The second check is endorsed on the back only.

The taxpayer's IRS account is credited for the first check amount. The taxpayer's bank account is debited for the total of both checks. The checks may or may not be from the same taxpayer.

Contact the taxpayer for a copy of the bank statement for two months, the month showing the amount deducted from the account, plus the following month. Follow e-4442/Form 4442, Inquiry Referral, procedures for required information if the information is not received by end of day, refer to IRM 21.3.5.4.2, How to Prepare a Referral. If the taxpayer submits a check for the difference, when they send a copy of the bank statement, close the case. Process the subsequent payment with the original received date. Refer to Campus Mailing Addresses, if the taxpayer is unable to fax the information and needs to send it in.

If the encoding error is on a money order or cashier's check, advise the taxpayer to contact the vendor for a photocopy of the front and back of the money order or cashier's check.

A returned refund check posts as TC 841 if the deposit discrepancy or encoding error resulted in a refund.

Research the following:

For additional information on transferring payments to or moving payments from the URF or XSF file, refer to IRM 21.5.7.4.4.2, Form 8765, IDRS Control File Credit Application, IRM 3.17.10.3, Unidentified Remittance File (URF), and IRM 3.17.220, Excess Collections File, for additional information.

If you cannot locate the payment, refer the case to HPTF with the following documentation attached:

HPTF performs research and contact the bank for the credit.

A mixed or slipped block condition is created if the payment documents and the Remittance Processing System (RPS) printing are out of sequence. The RPS 813 is usually correct, but the DLN and the money amount printed on the remittance and supporting documents are for the preceding taxpayer. This condition can occur at any point in the block and continue through the end of the block.

If the payment DLN indicates a missing payment posted to the account of an unrelated taxpayer:

Multiple remittance is two or more checks received with one return/document or received for one tax period. "M" is annotated in the upper left margin of the document and remittance. The number of checks follows the "M" (e.g., M3 = 3 checks, 1 return).

A split remittance is one check received for more than one return/document or for more than one tax period. "S" is annotated in the upper left margin of each document and remittance. The number of returns and/or periods follows the "S" (e.g., S2 = 2 returns, 1 check).

Using the date of the payment, research:

ISRP/RRPS SPLIT REMITTANCES: If you request the DLN from the back of the check using CC ESTAB, you only receive the last electronic voucher input. To secure all related vouchers from the split, the Remittance Processing System Identification (RPSID) number must be searched. For more information on ISRP/RRPS payments, refer to IRM 21.5.7.4.7.1, Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS).

HPTF requests the encoding tapes to compare the money amounts on Document 813 and validate the amount. If the tapes are unavailable, they request copies of the check from the depository.

Taxpayers sometimes return refund checks to be applied as payments. A TC 841 must be on the tax module with a prior TC 840 or TC 846. The credits post when the IRS receives the refund check from the taxpayer.

If the taxpayer's payments are applied to an incorrect tax period, transfer the payment to the correct module if the credit is still available (refund not issued).

If the payment was applied to satisfy another tax liability take the following actions:

If the taxpayer's payment is applied to an incorrect account:

When IMF payments are found under the secondary taxpayer's SSN on a joint return:

After all AM account actions have been completed, refer to IRM 21.1.1.3.1, Accounts Management (AM) Customer Service Representative (CSR) Duties Handling Accounts with Balance Due/Missing Returns.

Altered or stolen remittances mean payments that are either:

If the taxpayer indicates the payment was altered or stolen, request the following information:

When the copy of the payment is received and/or all research is performed:

If you do not have a copy of the cancelled check, obtain an image of the remittance from RTR or request a copy of both sides of the remittance from the taxpayer. Refer to IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System, for additional information. If the encoding information has been redacted from the taxpayer’s copy of the check, refer to IRM 21.5.7.4.7.15.1, Researching RSPCC Payments.

If you do not locate the payment, advise the taxpayer to place a stop payment on their payment and encourage them to use IRS Direct Pay to submit payment. If the payment was for a BMF account, encourage them to use the EFTPS system to submit a payment. Refer to IRM 21.2.1.48.2, IRS Direct Pay, and refer to IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS), for additional information.

Absolute proof of payment is conclusive evidence that IRS received a payment, for example,:

NCR receipts must identify the Register Number, time, date, office location and type and amount of tax paid.

Absolute proof a Federal Tax Deposit (FTD) was made is the verification or acknowledgment of a payment submitted to a commercial or Federal Reserve Bank. This proof can be:

When a lien is on the account (TC 582, lien indicator) and the payment fully satisfies all outstanding liabilities, request a manual lien release. See IRM 5.12.3.3.1 (5), Liability is Satisfied - IRC 6325(a)(1), regarding manual lien releases. If you have access to the Automated Lien System (ALS), input the lien release. If you do not have access to ALS, submit Form 13794, Request for Release or Partial Release of Federal Tax Lien, to the Centralized Case Processing (CCP) Lien Teams. Contact information for the CCP can be found by selecting Centralized Case Processing (CCP) Lien Teams.

The Integrated Submission and Remittance Processing (ISRP) System converts paper tax and information documents, and remittances received by IRS into perfected electronic records of taxpayer data. When a tax document is received, it is opened and sorted by form type (e.g., Form 1040, etc.). Remittances with their accompanying documentation are pre-sorted into groups called batches. Each batch is uniquely identified by a 12-digit Remittance Processing System Identification (RPSID) number. This number always begins with "00" , followed by six digits, followed by "0000." This system captures, stores, retrieves, and archives (vouchers and check images) and routes source data to downstream processing activities which subsequently post to the taxpayer's account on Master File.

Effective November 2020, the ISRP processing of remittances has moved to electronic processing through the Treasury OTCnet system. The check data is uploaded to OTCnet daily and from OTCnet to the Federal Reserve Bank of Cleveland (FRB-C). Refer to IRM 21.5.7.4.7.15, Remittance Strategy Paper Check Conversion(RSPCC). Due to disclosure rules the actual tax account/TIN information is redacted and will not be visible on the copy sent to the taxpayer/financial institution. Access the RTR database using the payment date and amount (and if available the routing number) to retrieve the TIN and tax account information to determine the disposition/application of the payment.

Deposit items that are not processed through ISRP must be processed through Manual Deposit, Lockbox or IDRS. These include unidentified deposits and re-deposits of dishonored checks. Receipt and Control prepare a payment posting voucher whenever a source document is not available and the remittance cannot be processed through Residual Remittance Processing System (RRPS).

Remittances processed manually are underlined with a rocker symbol in green pencil, "green-rockered" on the return. Encoder information is on the back of the remittance.

Remittances are applied instantaneously when applied to the taxpayer's account through IDRS. Receipt and Control prepare source documents for IDRS input.

The National Cash Register (NCR) encoder is used for encoding and endorsing remittances not processed through Residual Remittance Processing System (RRPS). The DLN is not printed on the back of the check, but a sequence number is. You may use this sequence number to locate the encode tape for the DLN. Remittances indicate an endorsement with the agency location code of the office receiving the credit. See Exhibit 3.8.44-7, Agency Location Codes (ALC), which provides information on agency location codes.

Field Office Payment Processing involves all payments received from the field office employees. Field offices use overnight services to transship the tax receipts to their designated Submission Processing Center. See IRM 3.8.47.5.4.1, Submission Processing Center/Field Office Alignment for Form 809 and Tax Payments. Cash remittances must be converted to check or money order before sending for processing.

Field office employees issue Form 809, Receipt for Payment of Taxes, when they receive cash. If payment is by check, money order, etc., a receipt is issued to the taxpayer.

When the Field Office employee issues Form 809, it becomes a posting document. The only exception is when the remittance is submitted with an original return. Then, the original return becomes the posting document.

If the payment cannot be located after all preliminary research is completed, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) at the campus that processed the payment, or processed the most recent payments.

The Lockbox operation involves the processing of tax payments by commercial banks. This method of processing payments accelerates the handling and deposit of funds received and is forwarded to Treasury.

Lockbox banks process payments for the following IMF products:

Lockbox banks process payments for the following BMF products:

Taxpayers mail remittances to the IRS at designated post office boxes for each form type. These addresses can be found in the instructions for the forms listed in (2) and (3) above.

The bank encodes and endorses the remittance. The DLN, TIN, name control, received date, and tax period are virtually printed on the back of the check.

The lockbox system generates an Optical Character Recognition (OCR) Remittance Register like the 813 Remittance Register.

The DLN consists of a file location code (FLC), (the first two digits in the DLN), unique to lockbox processing. Use this number with the bank endorsement to determine the correct campus to research.

All lockbox banks image checks, money orders, and vouchers can be viewed via RTR. If you need a copy of a check and the payment DLN has a list year of 6 (last digit of the DLN) or prior (all payments made prior to 2006), contact the appropriate Lockbox Coordinator from the Campus Lockbox Coordinators list on the SERP Who/Where tab under Lockbox Information.

Taxpayers may request and obtain permission to pay a tax liability through installment payments even before a tax liability is determined. All payments received for installment agreements post as a TC 670 to the taxpayer's account. An automated sweep occurs at the IRS to apply user fees as appropriate.

If a user fee payment cannot be located, transfer/reassign the case to the Compliance Services Collection Operation (CSCO), at the campus that processed the payment.

CSCO researches the following User Fee Reports in Accounting:

User fees related to installment agreements are on IDRS under MFT 13 or 55. MFT 13 or 55 is created when the CP 521 is generated. A TC 971 AC 082 or 083 sent to Master File establishes the module. Unlike other MFT 13 or 55 accounts, no reference numbers appear. You must use CFOL command codes to research these modules. The user fee recovery program established a new category on the Installment Agreement Accounts List (IAAL), for duplicate payments. Use command code (CC) ADD/ADC24 to move payments found on MFTs 13 or 55. For additional information see IRM 5.19.1.6.4.6.3, User Fee Payment Transfer/User Fee Abatements.

These receipts result from court actions and IRS referrals to Department of Justice (DOJ) for collection. Kansas City Processing Center (KCSPC) receives Standard Form 1081, Voucher and Schedule of Withdrawals and Credits, as notification of tax revenue secured by the (DOJ).

If a taxpayer's cancelled remittance shows a DOJ endorsement:

Prepare Form 3210, Document Transmittal, to include:

HPTF coordinates the resolution with Accounting personnel in accordance with IRM 3.17.30.14, Revenue Receipts.

Cashier’s checks may be purchased from banks or other financial institutions.

Receipts or copies of personal checks, used to purchase cashier’s checks, only serve as proof of payment to initiate research. The taxpayer is responsible for contacting the bank/vendor for a copy of the cancelled check.

Money order vendors leave the payee, payer, and date information blank on the money order. Taxpayer is responsible for providing this information.

Truncated checks are carbonless copies of original checks. Financial institutions no longer return cancelled checks to their clients.

If the payment cannot be located, send the taxpayer Letter 167C, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, to request they contact the bank for a microfilm or computer image of the check. Close the case and input CC STAUP for 6 cycles.

Field/Area Offices issue Form 809, Receipt for Payment of Taxes, or a cash register receipt to taxpayer for cash payments.

The tax return is validated at the time of receipt showing the amount and type of tax paid.

The field/area office prepares Form 783, Remittance Register, or Form 795-A, Remittance and Return Report, to list the payments. These forms are sent to the Submission Processing campus.

Research IDRS, including CC URINQ and CC XSINQ and RTR if available for these remittances.

If unable to locate the payment, prepare Form 4446, Payment Tracer Research Record. Transfer the case to the HPTF at the campus that processed the payment or processed the most recent payments.

HPTF verifies Form 813, Document Register, for the payment. HPTF contacts Internal Security, before allowing a substantiated credit from Account 6570, based on Form 809 as proof of payment.

A DLN with a tax class "6" (the 3rd digit of the DLN) identifies a payment as Non-Master File (NMF). A flashing "N" at the bottom of the CC ENMOD, CC SUMRY and CC TXMOD screens indicate there is a NMF account at another Submission Processing (SP) Center. To access the NMF account, an "N" is input after the TIN on CC SUMRY or CC TXMOD.

Contact the Accounting NMF function for researching payments dated before 1992, pre-ANMF payments. If the payment is found in another campus, request the credit be transferred to taxpayer's account. Follow procedures in IRM 3.17.46, Automated Non-Master File Accounting, for requesting NMF research and transcripts.

All international or possession returns with remittances are deposited where received. As of July 1, 2007, IMF international returns are sent to the Austin campus and BMF international returns are sent to the Ogden campus. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have a U.S. bank’s routing symbol printed in the lower left corner of the check and have a 9-digit routing number. These are processed as a regular deposit.

Any foreign remittance including remittances that are payable in U. S. dollars, drawn on foreign banks, and received with tax returns or documents, that fail to meet any portion of (1) above are processed using manual deposit. The deposits are then mailed to Citibank in Wilmington, Delaware and numbered and processed as a foreign remittance.

Receipt and Control processes source documents with remittances that are payable in foreign currency and drawn on foreign banks as manual deposits. The deposits are mailed to Citibank for a money conversion report.

When foreign currency is received, Receipt and Control contacts Bank of America to convert foreign currency to U. S. dollars. The tax return or document is then processed using manual deposit guidelines.

Each campus has specific deposit processing procedures. Refer to IRM 3.8.45.28, Specific Campuses Processing, for additional information.

For additional information on foreign remittances, refer to IRM 3.8.45.16, Foreign Check Remittances, for additional information.

If a taxpayer's cancelled check is stamped "FI" , it indicates the bank is holding credits belonging to taxpayer, referred to as "Free Items."

If the case involves "Free Items" :

Electronic Federal Tax Payment System (EFTPS) is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes.

The system is programmed to accept payments for tax years 1954 and subsequent.

Effective March 2004, Bank of America is the sole Financial Agent for EFTPS.

Taxpayers must enroll with the financial agent for IRS pre-validation before using the system. Taxpayers may make payments to the financial agent by personal computer, telephone, or bank.

Electronic funds withdrawal (EFW) is another method of paying electronically while filing electronically. The taxpayer authorizes an electronic withdrawal of funds from a designated checking or savings account during the e-file transaction.

Payments made by EFT show File Location Code numbers 81 as the primary, 82 and 83 as the overflow FLCs. 71 and 72 prior 20 2006 and Document Code 19 in the DLN. The Electronic Funds Transfer Number replaced the TUS Number and Microfilm Serial Number.

Payments processed through EFTPS can be identified through the EFT number shown on IDRS. After taxpayers enter the information, EFTPS supplies an acknowledgment number to the taxpayer. Instruct taxpayers to write down this number and keep it for future reference. If there is any problem with the payment, this number allows IRS to trace the payment quickly. Payments made after January 1, 2004, are constructed using the chart in IRM 3.17.277.5.3, EFT Number. For payments made prior to January 1, 2004 customer service representatives can construct the EFT number from a taxpayer provided acknowledgment number using the following elements:

All Bulk Providers are under Bank of America (BOA) effective 7/1/2005.

CC EFTPS is a research tool developed primarily for payment tracer purposes. The command code researches the EFTPS data base for payment data and audit history.

Research the payment using CC EFTPS by:

Refer to IRM 3.17.277, Electronic Payments, for more information on EFTPS.

As of January 2008, Remittance Strategy Paper Check Conversion (RSPCC) was implemented. It is a web-based system that enables AM Campus Support, Submission Processing (SP) campuses, and TAC offices to electronically process paper remittances at the point of receipt. Payments processed through RSPCC include those received in areas of the AM Campus Support Sites (Andover, Atlanta, Brookhaven, Memphis, and Philadelphia) such as Insolvency, Offer In Compromise (OIC), and Mis-directed payments, as well as payments for Offshore Voluntary Disclosure Program (OVDP) received at the Austin SP campus and payments received at Field Assistance (FA) TAC offices.

Payments processed through RSPCC are scanned and electronically sent to the Bureau of the Fiscal Service (BFS) Over the Counter Channel Application (OTCnet) for deposit. RSPCC interfaces with the Electronic Federal Payment Posting System (EFPPS), which allows the taxpayer's payment information to post to Master File. The OTCnet system is a Treasury department system and because it is a treasury system the disclosure rules prohibit the actual tax account/TIN information from being communicated, therefore the tax account/TIN/tracer ID information is redacted and will not be visible on the copy sent to the taxpayer/financial institution. You will need to access the RTR database using the payment date and amount (and if available the routing number) to retrieve the TIN and tax account information to determine the disposition/application of the payment.

OTCnet converts paper checks (personal and business) into electronic Automated Clearing House (ACH) debits or image documents that are cleared through the Check 21 network. Paper checks can be bank checks (personal or business), money orders, cashier’s checks, credit card checks, and/or state and federal checks. See IRM 3.17.278, Paper Check Conversion (PCC) and Remittance Strategy Paper Check Conversion (RSPCC) Systems.

Posting information of RSPCC payments is sent to EFPPS for Master File posting. The Ogden Accounting Function is the only site that has access to the RSPCC images as these files go through EFPPS/EFTPS. When Ogden Accounting Function requests an RSPCC image, the back of the check indicates:

FRB Cleveland
0410-0603-3
US Tres DG

If the taxpayer's RSPCC payment cannot be located using the information found in IRM 21.5.7.4.7.15.1, Researching RSPCC Payments, complete Form 4446, Payment Tracer Research Record, and mail the form to:
Internal Revenue Service
Ogden Submission Processing Center
Payment Correction Team 37302
M/S 6264
P.O. Box 9941
Ogden, UT 84409.

Lloyd’s of London makes quarterly deposits for some 1040ES/NR taxpayers via Electronic Funds Transfer (EFT). As of July 1, 2007, these deposits are made at the Kansas City campus only.

For payments made to Philadelphia prior to July 2007, prepare Form 4446, Payment Tracer Research Record, and route to HPTF, in the Ogden campus if unable to locate the payment.

HPTF researches the Fedwire Deposit System support listing maintained in Accounting by the payment date.

The State Income Tax Levy Program (SITLP) is an automated levy program. SITLP matches a Master File database of delinquent taxpayers eligible to be levied, against a database of state tax refunds for each state participating in SITLP. Currently, this process only matches against IMF accounts. Refer any inquiries to the ACS toll-free telephone number using the Telephone Transfer Guide (TTG). Refer to IRM 5.19.9.3 (11), State Income Tax Levy Program (SITLP) General, for a listing of participating states.

See IRM 5.19.9, Automated Levy Programs, for more information on SITLP inquiries, exclusion criteria, and appeals procedures.

Martinsburg Computing Center (MCC) creates SITLP files for states to process biweekly. Files are created and shipped during even cycles. The states generally process the SITLP file for a two-week period, and creates a cartridge that is sent to the appropriate campus for processing. The state sends the cartridge with a paper check for the total amount of the SITLP levy proceeds to a SITLP Coordinator at the processing campus or transmits the payment electronically via EFTPS.

Each state is required to send the taxpayer correspondence advising of the SITLP levy and refer any inquiries to the ACS toll-free telephone number. Taxpayers may receive the state notice weeks before the IRS notice, CP 92, Notice of Levy on State Refund Notice of Your Right to a Hearing, is issued. As a result, little information is available. This has resulted in telephone calls by IRS employees to state taxing agencies. FRONT-LINE ASSISTORS MUST NOT CALL STATE TAXING AGENCIES.

When it is determined that a taxpayer is not excluded from the SITLP levy, the combination of a TC 971 AC 600 and a TC 670 designated payment code (DPC) 20/21 on a tax module generates the CP 92.

Missing payments related to tax-exempt bonds (TEBs) received with Form 8038-T, Arbitrage Rebate, Yield Reduction, and Penalty in Lieu of Arbitrage Rebate, are worked at the Ogden Accounts Management Campus (OAMC) in the Exempt Organization Accounts Team. Form 8038-T is the only tax-exempt bond that is received with a remittance (with the exception of closing agreements). The remittance is identified as the green-rockered money and processed as a TC 610 to the Master File.

Tranship payment tracer cases withForm 8038-T to OAMC, Exempt Organization Accounts Team using Form 3210, Document Transmittal. Ogden follows the procedures in IRM 21.7.7.7.4.3, TEB Payment Tracer Procedures, to resolve the case.

Restitution is a legal remedy that can be ordered by the court, in a criminal case. A restitution order requires the criminal defendant to pay money or render services to victims in order to redress the loss the defendant has inflicted. Normally imposed during sentencing, it can be agreed to by the parties in a plea agreement or imposed as a condition of probation or supervised release.

Restitution is generally limited to losses caused by the offense(s) of conviction. The major exception to this general rule is in cases involving plea agreements. The parties to a plea agreement in any criminal tax case may agree to restitution in an amount greater than the loss attributable to the offense(s).

For restitution orders entered after August 16, 2010, IRC 6201(a) was amended to allow the IRS to assess and collect the amount of restitution ordered in a criminal case for failure to pay any tax imposed by the IRC in the same manner as if such amount is a tax. Prior to the amendment, IRS could not take administrative collection action to collect the restitution amount unless the tax was assessed in a separate civil proceeding.

Conditions of probation and restitution ordered in a document signed by the judge are called Judgment and Commitment orders. Judgment and Commitment Orders normally specify that defendants must submit restitution payments to the office of the clerk of court in the district in which the defendant was sentenced. This generally includes restitution payments required to be paid to the IRS.

The clerk of court has the responsibility for receiving, processing, and recording restitution payments made by defendants. The clerk of court forwards the money (Treasury checks, personal checks, and/or money order) to the victim(s) listed in the restitution order, which may include the IRS. Criminal restitution payments made to the IRS are mailed to the address below.

The clerk of court offices disburses criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS are processed by Submission Processing at the Kansas City Campus only. The clerk of court offices received instructions to send all criminal restitution payments to the following address:

For inquiries regarding missing court ordered restitution payments or if taxpayer’s cancelled check shows a Department of Justice (DOJ) endorsement, contact Kansas City DOJ/Criminal Restitution team at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. For receipt and reconciliation of criminal restitution payments, and for information regarding their payments and balance, taxpayers can contact the court district where restitution was ordered.

In connection with prosecutions for identity theft, refund schemes and tax evasion, state courts sometimes order defendants to pay restitution to the IRS. The IRS has communicated to the states the proper address to send restitution payments, which is the address in (6) above, but to a different M/S:
Attn: M/S 6261
Special Services Team

Further information regarding criminal restitution payments can be found in IRM 3.17.243.7.9.8, Restitution Based Assessment (RBA) Non-Master File (NMF) Accounts.

IRS Direct Pay is a payment application that is available to Individual Master File (IMF) taxpayers through IRS.gov. Refer to IRM 21.2.1.48.2, IRS Direct Pay, for additional information regarding this payment method.

Refer to IRM 21.2.1.48.2.1, Responding to IRS Direct Pay Inquiries, regarding verification of payments made through IRS Direct Pay.