Full disclosure of the financial results of the agency’s activities.

Adequate financial information needed for the agency’s management purposes.

Effective control over and accountability for all funds, property and other assets which the agency is responsible, including appropriate internal audit.

Reliable accounting results serving as the basis for preparation and support of budget requests, controlling the execution of its budget and providing financial information required by the President or other designated authority.

Suitable integration of agency’s accounting with Treasury’s accounting in connection with the central accounting and reporting responsibilities imposed by the Secretary of the Treasury.

Recertification - Effective October 26, 1986, the Department of the Treasury (BFS) delegated to administrative agencies full responsibility for certifying replacement payments to payees who claim non-receipt, lost, stolen, mutilated or destroyed checks. This procedure is known as Recertification. the Service authorizes the re-issuance of a check under Recertification.

Settlement Check - A check issued by BFS Check Claims Branch prior to October 26, 1986, and more recently in 2002 and 2003 when non-receipt claims were determined to be forged. Settlement checks are issued by BFS from the Check Forgery Insurance Fund to replace an original check cashed by an individual other than the taxpayer, the payee. The check number and symbol of the settlement check are different from those on the original check. The recent settlement checks overlay the original check issue symbol and serial requiring in-depth research by BFS for resolving cases.

Substitute Check - A check issued by Check Claims Group (CCG) to replace an original check still outstanding. Substitute checks were also referred to as duplicate checks and were issued from the Washington Regional Finance Center (RFC). The substitute check has the same check number and symbol of the original. Substitute checks are not issued under Recertification.

Recertified Check - A check certified for re-issuance by the Agency, after October 26, 1986, to replace an original check still outstanding. The result of a non-receipt claim submitted by tape input or Standard Form (SF) 1184, Unavailable Check Cancellation.

Altered Check - A check that is changed (defaced) before cashing (for example, the refund amount printed on the check is changed).

Unavailable Check Cancellation Credit - Credit returned to the ALC from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9."

Available Check Cancellation Credit (ACC)- Credit(s) returned to the Service from an intercepted refund check (Reason for Return Code "1" ), undeliverable refund check (Reason for Return Code "2" ) or other reasons not identified above (Reason for Return Code "3" ).

Unavailable Check Cancellation (UCC)- credits are returned to the Service via Standard Form (SF)1098, Schedule of Cancelled or Undelivered Checks, cancellations from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9" .

U.S. Treasury checks (including all IRS tax refund checks) are negotiable for one year from the date of issuance or one year from the effective date of the new law, for those checks issued on or after October 1, 1989. BFS returns LP credits to the agency that authorized issuance of the check and is similar to returning credits on check claims when the check is outstanding (Status 32). No credits are returned on canceled checks issued before October 1, 1989.

Claims "on account of a Treasury check" must be presented to IRS for tax refund checks within one year from the date of issuance (or one year from the effective date of the new law) for checks issued before the law took effect. Different procedures apply to these claims. BFS involvement is much more limited than claims made within 1 year.

Reclamation actions by BFS through the banking system to recover funds on forged checks are limited to one year (or one and a half years if a timely claim, as described in (2), above, is filed). When BFS cannot recover funds, a credit will not be returned to IRS, even though settlement was authorized. Procedures for handling this situation are included in IRM 21.4.4.

Limited Payability Cancellation (LPC) Credits are transmitted monthly, provided that an LPC occurred. Credits originate from BFS to ECC. Cancellation data generates a TC 740 to the Master File via Form 1081 TRACS with block and serial number 66666 and will set an "S" Freeze on the account.

Reclamation (REC) Credits are transmitted monthly, provided an UCC occurred. Credits originate from BFS to ECC. ECC generates a TC 841 to the Master File via Form 1081 TRACS with block and serial 88000 and are the result of a non-receipt claim which secured recovery of funds through the banking system on a forged check. When BFS cannot recover funds, no credit will be returned to IRS, even though BFS authorizes settlement with the taxpayer.

Funds are recovered by BFS from the financial institution when a Treasury check is paid over a forged endorsement.

Credits are returned to IRS Master File via the Treasury Receivable and Accounting Collection System (TRACS) Form 1081 process.

IRM 1.11.3, Servicewide Policy Statement Process

IRM 1.15, Records and Information Management

IRM 2.4.19, Command Code REQ77, FRM77 and FRM7A

IRM 2.4.20, IDRS Command Code RFUND and REFAP

IRM 3.0.167, Losses and Shortages

IRM 3.11.10, Revenue Receipts

IRM 3.13.62, Media Transport and Control

IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF)

IRM 3.17.20, The Refund Intercept Program

IRM 3.17.30, SC Data Controls

IRM 3.17.63, Redesigned Revenue Accounting Control System

IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations

IRM 3.17.243, Miscellaneous Accounting

IRM 3.24.7, Delinquent Accounts

IRM 13.1, Taxpayer Advocate Case Procedures

IRM 11.3, Disclosure of Official Information

IRM 20.1, Penalty Handbook

IRM 20.2, Interest

IRM 21.1, Accounts Management and Compliance Services Operations

IRM 21.2, Systems and Research Programs

IRM 21.3, Taxpayer Contacts

IRM 21.4.1, Refund Inquiries

IRM 21.4.4, Manual Refunds

IRM 21.4.5, Erroneous Refunds

IRM 21.4.6, Refund Offset

IRM 21.5, Account Resolution

IRM 21.6, Individual Tax Returns

IRM 21.7, Business Tax Return and Non-Master File Accounts

IRM 21.10, Quality Assurance

IRM 25.6, Statute of Limitations

The Kansas City Bureau of the Fiscal Service (BFS), formerly known as Financial Management Service (FMS), and the Federal Reserve Bank (FRB), are directly involved in two types of EFT services: Automated Clearing House (ACH), and Wire Transfers (FEDWIRE).

ACH primarily functions through the FRB. Rules, procedures, and programs were developed by the Regional ACH Association, National Automated Clearing House Association (NACHA).

ACH payment files received by the BFS on any business day allows for payee accounts to be credited the next business day. ACH payment processing can accept payment amounts up to $99 million.

Known as the Federal Reserve Communications Systems (FRCS), wire transfers are executed through the FEDWIRE network.

The BFS uses FEDWIRE extensively to disburse and collect funds. BFS uses the Treasury FEDLINE to transmit funds through the FEDWIRE System.

Treasury FEDLINE is an EFT system that has a direct line to the FRCS through the Federal Reserve Bank of New York (FRBNY).

Wire transfer payment schedules are routed to the Kansas City, BFS.

Payment amounts are limited to $999,999,999.99 million and are credited to payee accounts on the same business day.

Treasury checks are drawn on the U.S. Government and issued from a refund appropriation or other Treasury account symbol on a Secured Payment System (SPS) Refund Schedule submitted to the Kansas City, BFS. Treasury tax refund and other check payments are certified through the Kansas City, BFS SPS. The SPS screen print of the SPS Refund Schedule serves as supporting documentation for check-issue media submitted to the Kansas City, BFS. The SPS Refund schedule is created and matched to tape reel number or other transmission record, check volume, amount, and date certified. Individual payment detail data for check inscription, are included on the file. All refund schedules are certified by a designated "Authorized Certifying Officer" of the agency.

Form 3753, Manual Refund Posting Vouchers, are processed through the Internal Revenue Service (IRS) Integrated Submission and Remittance Processing system (ISRP) using Document Code 45 in the document locator number (DLN) for posting to the Master File. The SPS Refund Schedule is sent to the Kansas City, BFS, for disbursement of the refund.

Forms 5792, Request for IDRS Generated Refund (IGR), are input via Integrated Data Retrieval System (IDRS) (CC RFUNDR) and transmitted to the Kansas City, BFS. Files are sent simultaneously to the Enterprise Computing Center for posting the TC 840 to the Master File.

Miscellaneous refund payments such as Photocopy Fee (Form 4506, Request For Copy of Tax Return) reimbursements are certified by the Internal Revenue Service (IRS) and sent to the Kansas City, BFS, to issue a check. Miscellaneous refund payments are issued from General Ledger Accounts and are not reflected on the Master File.

Federal agencies use the International Treasury Services (ITS) web application, ITS.gov, to issue payments to recipients in foreign countries. ITS can support payments in either foreign currency or USD depending on the needs of the federal agency and supports both one-time and recurring payments, including vendor, benefit, payroll, or other payment types.

The Bureau of the Fiscal Service provides international payment services to federal agencies allowing payments to be made in 140 currencies in more than 200 countries.

ITS is used in conjunction with SPS when sending payments to recipients in foreign countries. ITS users must have the corresponding access in SPS for the role that they will be using.

Any e-mail containing PII must be encrypted (secured). For more information on e-mail and privacy (See IRM 10.5.1.6.2, Encryption).

All shipment of tax returns and return information between Submission Processing, Accounts Management, Compliance Services Operations, the IRS National Office, IRS field areas and territories, the Enterprise Computing Centers, Bureau of the Fiscal Service or other government agencies and jurisdictions are documented, accomplished and accounted for as required by IRM 1.4.6, Managers Security Handbook.

Submission Processing Director (and/or other supervisory levels) will ensure the integrity of signatures by establishing procedures for signing Form 3753 and/or Form 5792, Request for IDRS Generated Refund (IGR) and appointments/terminations of designated Certifying Officers. See IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds and IRM 3.17.79.1.8, Designating Certifying Officers (CO) and CO Review.

Employees authorized to approve a manual refund request cannot also have authorization to initiate a manual refund request and/or adjust taxpayer accounts.

A manual refund authorizing official or Certifying Officer, must not have the following sensitive command codes in their IDRS command code profiles: ADJ54, ADC24, ADC34, ADC48, ADD24, ADD34,ADD48, AMCLS, BNCHG, INCHG, ADJ54, DRT24, FRM34, DRT48, REQ54, URAPL, URREF, XSAPL, XSREF, RFUND, and REFAP.. Authorizing Officials and Certifying Officer must be added to the RSTRK (M) Listing upon taking those roles. The Taxpayer Identification Number (TIN) of the authorizing official or Certifying Officer must be provided to the Accounting Operation, Manual Refund function ,so that function can add the Authorizing Official or Certifying Officer to the RSTRK (M) Listing. The TIN information must be provided even when the Authorizing Official or Certifying Officer does not have IDRS access.

The internal control separation of duties was established by GAO to protect the integrity of government funds. This automated security review; Automated Command Code Access Control (ACCAC) reduces the potential for financial mismanagement. The ACCAC database is maintained by Information Technology (IT), Cyber Security Division.

The Accounting Operation, Unit Security Representatives (USR) will perform IDRS actions per the IRM 10.8.34, IDRS Security Controls. See IRM 10.8.34, Exhibit-5, Sensitive Command Code Combinations. ACCAC provides ability to automatically activate, deactivate or bypass Command Code profiles and to limit access for IDRS security profiles.

The ACCAC was developed by IDRS Security with the affected business operating divisions to initiate a standard procedure to ensure that restricted combination sensitive command codes are not in the employee profiles.

The requirements for management officials to provide personal information to the Unit Security Representative (USR) is located in IRM 10.8.34, IDRS Security Controls. The ACCAC system is designed to update the Restricted Command Code Access Lists for each Center. Employees must protect the integrity of all personal information. The Unit Security Representatives are designated to key enter and remove restricted command code access data into and from the database. Standard information and IDRS Security review actions by Unit Security Representatives are found in IRM 10.8.34, Exhibit-5, Sensitive Command Code Combinations.

The Submission Processing, Accounting Operation, Manual Refund function continues to maintain and secure original signatures of officials authorized to approve manual refund requests (Form 14031, Manual Refund Signature Authorization,) -See IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds.

Each SP site must assign at least one alternate (Back-up) that will sign documents for access to the Secure Payment System (SPS) in the absence of the Authorized Delegated Official.

Delegated Heads of Office and alternate (Back-up) delegated Heads of Office must have a current FS Form 2958DO, Delegation of Authority on file with the BFS; CFO, Financial Management, Policy and Data Analytics Office), and the applicable Submission Processing Center.

To prepare the Delegation of Authority package for submission refer to the "If - Then" chart below:

Forms MUST be completed and submitted electronically to the Bureau of Fiscal Services (BFS).

SECTION I - DESIGNEE Complete the fields in Section I by filling in the appropriate Delegation of Authority (DO) information under a. information, then checking one of the following applicable boxes under b. Request Type (Check One):
"Original"
"Delegation Update (Comments Required)"
"Revocation" ,
and then secure the Delegation of Authority’s Digital Signature under c.1. Digital Signature.

SECTION II - DELEGATOR Complete the following section by: inputting the date the Delegation of Authority becomes effective and checking the Designate Certifying Officers, Data Entry Operations, Designated Agents box under d. Delegation.

SECTION III - POINT OF CONTACT Input the following information for the Chief Financial Office Point of Contact, Cynthia A. Carver, under f. Information:
Address: Internal Revenue Service
Attn: C.A. Carver OS:CFO:FM;
111 Constitution Avenue NW
Room 6100K, Mail Stop 6167
Washington, DC 20224
Email: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Phone: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

SECTION IV- "FISCAL SERVICE VALIDATION" This section is for the BFS Use Only. Beginning October 1st, 2022, this section has been left blank by the BFS and the confirmation that the Delegation of Authority request was validated by the BFS is now delivered electronically to the Internal Revenue Service Points of Contact through a systemic process which includes an email when the delegation is processed with a STEP Profile Details summary page attached. This summary page is sent from the STEP System, which is the system the BFS uses to processes the Delegation of Authority requests. And the STEP Profile Details summary page shows the pertinent Delegation of Authority information including the date the designation was completed by the BFS and will now serve as the BFS Validation for the designation.

Automated Federal Agency enrollment requires Certifying Officers to file and maintain a valid FS Form 210CO, Designation of Certifying Officer, Signature/Designation for the Certifying Officer digitally signed by their Delegating Official who must have a current FS Form 2958DO, Delegation of Authority on file. See IRM 1.2.2.2.32, Delegation Order 1-41, Designation of Officers and Employees as Authorized Certifying Officers. The purpose of FS Form 210CO, Designation of Certifying Officer is to designate a certifying officer that will sign to certify refund authorizations.

Submission Processing Center Directors designate Certifying Officers to certify manual refunds. The Certifying Officer must be a management level (i.e. Department Manager, Team manager, Lead, etc.) or equivalent (i.e. P&A Analyst, Technical Advisor, etc.) employee within the Submission Processing. Additionally, the Certifying Officer must take the mandatory annual CO training located in IRM 3.17.79.1.12.1, Certifying Officer (CO) Training. The supporting documents for these disbursements are SPS Refund Schedules, Voucher and Schedule of Payments, or SPS screen print, Form 3753, Form 5792 and related credit (Form 3809, Miscellaneous Adjustment Voucher Form 3245, Posting Voucher - Refund Cancellation or Repayment) or file source documentation (e.g., cross reference).

Each SP site must designate at least one CO and one or more alternates to access SPS. The CO must have access to the SPS. Due to the sensitivity of the data processed, the BFS requires that every SPS user, at an agency, have an approved FS Form 89, Digital Access Request (DAR), on file to gain access to SPS. If an active CO is detailed to a temporary work assignment exceeding 120 days their FS Form 210CO, Designation for SPS Certifying Officer and FS Form 89 Digital Access Request (DAR) must be revoked.

The Submission Processing Centers must submit the latest version of FS Form 210CO, Designation of Certifying Officer and FS Form 89 Digital Access Request (DAR) electronically to: the Policy and Data Analytics office for a Designation, a Revocation and a Name Change request. Additionally, effective November 1, 2018, federal Certifying Officers, who certify payments for agencies through Treasury, Fiscal Service, are required by Fiscal Service to complete the Fiscal Service Certifying Officer Training as part of each issuance of new or renewed credentials. On FS Form 210CO, the Designee must affirm completion of Fiscal Service Certifying Officer Training within 30 days prior to submission of the Form. A certificate of completion is only available upon successfully passing the exam at the end of the training. The certificate of completion must be maintained by the Designee and must be provided upon request to Fiscal Service. The training can be found at: Bureau of the Fiscal Service - Training - Certifying Officer Training (treasury.gov). To prepare the electronic Designation of Certifying Officer package for submission refer to the "If - Then" chart below:

Certifying Officers must have an FS Form 210CO, Designation of Certifying Officer and a FS Form 89 Digital Access Request (DAR) on file at the BFS, Policy and Data Analytics office and the applicable Submission Processing Center. The Certifying Officer privileges must be renewed or revoked every year.

Due to the current submission requirements from the BFS, all forms must be completed, digitally signed, and submitted electronically to the Bureau of Fiscal Services (BFS) at the following email address: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

SECTION I - "DESIGNEE" Complete the fields in Section I by filling in the appropriate Certifying Officer information under a. Information, then checking one of the following applicable boxes under b. Request Type (Check One):
Original
Delegation Update (Comments Required)
Revocation,
then completing c. Certifying Officer Training by checking the Certifying Officer Training box and entering the date the BFS training was completed; and then secure the Certifying Officer’s Digital Signature under d.1. Digital Signature.

SECTION II - "DESIGNATOR" Complete the following section by: inputting the effective date of the Certifying Officer Designation under e. Designation and securing the Digital Signature of the Delegation of Authority under f.1. Digital Signature.

SECTION III- "Point of Contact" Complete this section by filling in the name, address, email address, and phone number of the Point of Contact that must also be notified by the BFS once the validation is completed. This Point of Contact should be the Trusted Enrollment Agent (TEA).

SECTION IV- "FISCAL SERVICE VALIDATION" This section is for BFS Use Only. Beginning October 1st, 2022, this section has been left blank by the BFS and the confirmation that the Certifying Officer request was validated by the BFS is now delivered electronically to the Internal Revenue Service Points of Contact through a systemic process which includes an email when the delegation is processed with a STEP Profile Details summary page attached. This summary page is sent from the STEP System, which is the system the BFS uses to processes the Certifying Officer requests. And the STEP Profile Details summary page shows the pertinent Certifying Officer information including the date the designation was completed by the BFS and will now serve as the BFS Validation for the designation.

If the SP site receives the FS Form 210CO, Designation of Certifying Officer validation and/or revocation package directly from the BFS via email, a copy of the completed electronic package, along with the email from the BFS, must be provided to the Policy and Data Analytics office for their records by secured e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or by mail at the following address:
Internal Revenue Service
Attn: Cynthia A Carver, OS:CFO:FM
1111 Constitution Ave, NW (Mail Stop 6167)
Washington, DC 20224-0001

A file for each individual Certifying Officer must be maintained and accessible for review by internal and external stakeholders. The file must include FS Form 210CO, Designation of Certifying Officer and all associated documentation related to the designation. The Designations of Certifying Officers, forms, lists and correspondence relating to the designation to certify vouchers must be destroyed 6 years after revocation.

Upon receipt of the completed BFS validation, the Trusted Enrollment Agent (TEA) and Certifying Officer (CO) must notify the designated employee with the capability to add employee profile restrictions using IDRS CC RSTRK(M) to have the CO added.

The Submission Processing Centers must submit the latest version of FS Form 210DEO, Designation for SPS Data Entry Operator and FS Form 89 Digital Access Request (DAR) to: the Policy and Data Analytics office. If an active DEO is detailed to a temporary work assignment exceeding 120 days their FS Form 210DEO, Designation for SPS Data Entry Operator and FS Form 89 Digital Access Request (DAR) must be revoked. Additionally, effective November 1, 2018, federal Data Entry Operators, who process payment requests for agencies through Treasury, Fiscal Service, are required by Fiscal Service to complete the Fiscal Service Certifying Officer Training as part of each issuance of new or renewed credentials. On FS Form 210DEO, Designation for SPS Data Entry Operator, the Designee must affirm completion of Fiscal Service Certifying Officer Training within 30 days prior to submission of the Form. A certificate of completion is only available upon successfully passing the exam at the end of the training. The certificate of completion must be maintained by the Designee and must be provided upon request to Fiscal Service. The training can be found at: Bureau of the Fiscal Service - Training - Certifying Officer Training (treasury.gov). To prepare the Designation of SPS Data Entry Operator package for submission refer to the "If - Then" chart below:

Data Entry Operators must have a FS Form 210DEO, Designation for SPS Data Entry Operator and a FS Form 89 Digital Access Request (DAR) on file at the BFS, Policy and Data Analytics office and the applicable Submission Processing Center. The DEO privileges must be renewed or revoked every year.

Due to the current submission requirements from the Bureau of Fiscal Services (BFS), all forms must be completed, digitally signed, and submitted electronically to the BFS at the following email address: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

SECTION I - "DESIGNEE" Complete the fields in Section I by filling in the appropriate Data Entry Operator information under a. Information, then checking one of the following applicable boxes under b. Request Type (Check One):
Original
Delegation Update (Comments Required)
Revocation,
then completing c. Certifying Officer Training by checking the Certifying Officer Training box and entering the date the BFS training was completed, and then secure the Data Entry Operator’s Digital Signature under d.1. Digital Signature.

SECTION II - "Designator" Complete the following section by: inputting the effective date of the Data Entry Operator Designation under e. Designation and securing the Digital Signature of the Delegation of Authority under f.1. Digital Signature.

SECTION III- "Point of Contact" Complete this section by filling in the name, address, email address, and phone number of the Point of Contact that must also be notified by the BFS once the validation is completed. This Point of Contact should be the Trusted Enrollment Agent (TEA).

SECTION IV- "FISCAL SERVICE DESIGNATION" This section is for BFS Use Only Beginning October 1st, 2022, this section has been left blank by the BFS and the confirmation that the Data Entry Operator request was validated by the BFS is now delivered electronically to the Internal Revenue Service Points of Contact through a systemic process which includes an email when the delegation is processed with a STEP Profile Details summary page attached. This summary page is sent from the STEP System, which is the system the BFS uses to processes the Data Entry Operator requests. And the STEP Profile Details summary page shows the pertinent Data Entry Operator information including the date the designation was completed by the BFS and will now serve as the BFS Validation for the designation.

If the SP site receives the FS Form 210DEO, Designation of Data Entry Operator validation and/or revocation package directly from BFS via email, a copy of the complete electronic package, along with the email from the BFS, must be provided to the Policy and Data Analytics office for their records. The copies can be sent by secured e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡or by mail at the following address:
Internal Revenue Service
Attn: Cynthia A Carver, OS:CFO:FM
1111 Constitution Ave, NW (Mail Stop 6167)
Washington, DC20224-0001

A file for each individual Data Entry Operator must be maintained and accessible for review by internal and external stakeholders. The file must include FS Form 210DEO, Designation of Data Entry Operator and all associated documentation related to the designation. The Designations of Data Entry Operator, forms, lists and correspondence relating to the designation must be destroyed 6 years after revocation.

Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after Center input. Transactions will be viewable on IDRS command codes the third day after Center input.

Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and will result in the account type changing to Weekly.

Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

Use of the Posting Delay Code on transactions will result in the transaction being held until the weekly processing on Thursday. When the transaction is processed on Thursday and the Posting Delay Code contains a value other than zero, the transaction will continue to re-sequence for the number of cycles equal to the value.

Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

Transactions will be viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

01 = Friday

02 = Monday

03 = Tuesday

04 = Wednesday

05 = Thursday

A refund hold will be applied when through Master File processing of the account, the account meets Priority Refund Transcript criteria (Refund, Refund-E, Refund-S, $1M, and $10M). The accounts will reflect a TC 971 AC 805 and a TC 570 with blocking series “55555” indicating the refund hold has been applied. The hold will systemically expire 4 business days after the TC 971 AC 805 date.

A refund hold will be applied when through Master File processing of the account, the account meets criteria to issue CP (Computer Paragraph) 12, 16, 21, or 24. These accounts will be processed during the weekly processing on Thursday. The accounts will reflect a TC 971 AC 804 and a C- freeze. The hold will systemically expire 7 calendar days after the TC 971 AC 804 date.

BMF refunds for each Center (Excluding D.O. 66 and 98).

IMF refunds for each Center (Excluding D.O. 66, 97, and 98).

BMF International refunds for Districts 66 and 98.

IMF International refunds for Districts 66, 97 and 98.

IMF refund/rebate/EIC data for each Center (excluding D.O. 66, 97, and 98).

BMF refund/rebate data for each Center (excluding D.O. 66 and 98).

IMF direct deposit refunds for each Center (excluding D.O. 66, 97, and 98).

BMF direct deposit refunds for International for Districts 66 and 98.

BMF accelerated refunds for each Center (excluding Districts 66 and 98).

BMF accelerated refunds for International for Districts 66 and 98.

IMF direct deposit refunds for Assistant Commissioner (International) for D.O. 66, 97, and 98.

If hold codes are not correctly input by initiator, Accounting will reject - See IRM 3.17.79.3.2.2, Rejecting Manual Refunds. This prevents duplicate refunds.

Form 5792 /Form 3753 must include the specific reason and appropriate authority in Section II (1.) and the "Remarks" field as to why this item must be issued as a manual refund.

All Forms 5792/Forms 3753must include the BOD that is initiating the manual refund.

If a direct deposit is being requested then proof from bank that a checking or savings account exists and it is the account of the taxpayer, a voided check, or a copy of an original tax return (signed and accepted) for the same tax period as the requested refund that has the routing and account information must be attached to Manual Refund Request.

Proof of economic hardship to support issuing an ACH/DD manual refund.

Proof from bank that a savings or checking account exists and it is the account of the taxpayer, a voided check, or a copy of an original tax return (signed and accepted) for the same tax period as the requested refund that has the routing and account information,when the refund requested is the original tax return. Use discretion when taxpayer accounts are Married Filing Joint (MFJ).

These requests are granted under rare and unusual circumstances and must meet certain criteria. See references and actions required provided in IRM 13.1, Taxpayer Advocate Case Procedures.

Procedures for immediate processing of hardship refunds must be considered, see reference IRM 3.17.79.3.3(2), Issuing Hardship Refunds

Prepare Form 3753.

The requesting office authorized approving official must sign and have a current signature on file with the SPC Certifying Officer. See reference at IRM 3.17.79.3.5, Employees Authorized to Approve Requests for Refunds.

The Approving Official is responsible for the validity of each refund requested. The request must be made directly to the Manual Refund function.

The request is supported by emailing the necessary documentation to the Manual Refund function organizational mailbox.

These requests are for taxpayers who will suffer significant hardship if their refund is not processed within 5–10 days. Otherwise follow normal procedures if this accelerated time frame is not required.

Do not initiate a manual refund if the case can be cleared through Enterprise Computing Center (ECC) - Martinsburg in 2 cycles.

Contact the Manual Refund function at the Submission Processing Center. Determine whether the manual refund can be stopped.

Input CC NOREF to stop the generated (TC 846) refund. Valid for BMF tax accounts only.

Contact the Notice Review function in the appropriate Submission Processing Center to stop the refund.

The refund volumes will be reported according to the initiating BOD’s that are indicated on the MISTLE report.

See IRM 3.30.124, Center Monitoring Reports for instructions on how the report must be completed.

HQ’s will send a reconciliation spreadsheet to the sites monthly. Each site is to validate whether or not the schedules were processed for the month that BFS has reported on the bill.

Responses are due back to HQ’s within three business days of the request.

Send the response via e-mail to: Manual Refund Headquarter Contacts.

Use the “FY (XX) Manual Refund Volumes and Amount” report that can be obtained from the SP, ATP, Branch Manual Refund Project SharePoint site Manual Refund Project - Home (sharepoint.com) within the Manual Refund Misc. Documents folder.

This information is to be reported, on a quarterly basis, no later than the 15th day of the month following quarter end.

The tabs are site specific. Complete the quarterly information and send the report via e-mail to: Manual Refund Headquarter Contacts.

Employees authorized to sign manual refund requests must not be the same employee authorized to adjust and/or initiate a request for manual refund on any one refund transaction for a taxpayers account.

Also see IRM 3.17.79.1.11, Authorized Signatures and Delegations of Authority.

Per Delegation Order 3-1 (formerly DO-40), Credits and Refunds located in IRM 1.2.2.4.1, the Form 14031, Section III, must contain the signature of the Head of Office (Area, Executive Director, Field Director, LTA, NTA, etc.) of the requesting office. This authorization cannot be re-delegated - See IRM 13.1.4.2.2.1 for Delegation Order 3-1 (Rev. 2), which gives authority to approve the DISBURSEMENT of funds.

The Form 14031 must be digitally signed with Valid digital signatures, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

The digital signature HOO name is stated in the Accounting Refund Function Spreadsheet (current spreadsheet) - See 3.17.79.3.5.2(2).

New requests are processed by Accounting Operations within 2 business days (i.e., received date plus 1 business day) of receipt.

The Accounting Operation Received Date is documented in Section IV (Accounting use Only box) on the Form 14031 when received in the Manual Refund function.

The Accounting Operation RSTRK(M) Input Date is documented in Section IV (Accounting use Only box) on the Form 14031 when received in the Manual Refund function.

Date fields (Section II, M and Section III, Q) Leave blank: The Manual Refund Approver digitally signed date is no longer required, since the date is part of the digital signature.

The authorized approving official digital signature date and timestamp (Form 14031, Section II) must be on or before the delegating official (Head of Office) digital signature date and including timestamp (Form 14031, Section III).

The pseudonym line is blank unless back-up documentation is attached as required per IRM 3.17.79.3.5(8)n, Employees Authorized to Sign Requests for Refunds.

The Director or equivalent in Section III of the Form 14031IS NOT the manual refund authorizer in Section II on ANY Form 14031.

The individual that is designated to act for the HOO types the head of office position title on Form 14031, Section III, item N while serving in that capacity (i.e., acting Director of AM, acting Director Examination, etc.).

The Form 10247 is digitally signed with a valid digital signature, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened - See IRM 3.17.79.3.5.5.

The digital signature date (including timestamp) in Section III of Form 14031 is within the From and To date on the Form 10247 when signed by a designated official.

The Form 10247 digital signature date (including timestamp) is prior to the From date on the Form 10247.

If the HOO submits a Form 10247 to designate an actor, ensure that the form is digitally signed by the existing HOO and If the existing HOO is not available, that the HOO at the next higher level digitally signs the request in their absence.

Section I, a: Name of the Submission Processing Center you will send Form(s) 3753/5792 to for processing

Section I, b: Input month (written out) and year in which the signature will become valid

Section II, c: Name of Authorized Manual Refund Approver (must be NBU)

Section II, d: Title of Authorized Manual Refund Approver

Section II, e: e-mail Address

Section II, f: Mailing Address

Section II, g: Telephone Number

Section II, h: Business Operating Division

Section II, i: Campus or Field Office Location (i.e., Fresno - AM)

Section II, j: Social Security Number (SSN) and SEID

Section II, k: Digital Signature of Manual Refund Approver in Section II, c above - See IRM 3.17.79.3.5.5.

Name of Authorized Manual Refund Approver

Section II, l: Pseudonym (Print Only) (Copy of e-mail from Office of Privacy)

Section II, m: Date

Section III, n: Digital Signature of Head of Office - See IRM 3.17.79.3.5.5.

Section III, o: Printed Name of Head of Office

Section III, p: Printed Title of Head of Office

Section II, q: Date

Section IV, r: Mail Form To:

For Accounting Operations use only:
Received date
RSTRK input date
Scan to SharePoint date (Leave Blank)
RSTRK removal date (Leave Blank)

Section III contains the statement certifying that IDRS Combination Sensitive Command Codes are no longer authorized for the employee listed to sign requests or certify refunds is referenced in IRM 3.17.79, Accounting Refund Transactions and IRM 10.8.34, IDRS Security Controls.

The SP, ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access to the Manual Refund Project SharePoint must be requested through BEARS. See IRM 3.17.79.1.1.3.

The Form 14031, repository file instructions are located and accessible on the SP, ATP, Manual Refund Project SharePoint site Manual Refund Project - Home (sharepoint.com). All original Forms 14031 in PDF format must be uploaded onto the SharePoint Site repository file upon acceptance in the Accounting function.

Accessing the SharePoint site, Form 14031 repository file, allows electronic verification of the manual refund approving official digital signature - See IRM 3.17.79.3.5.5. All paper Forms 14031, will be maintained and secured at each site and must be used for contingency purposes. When a Form 14031 is removed from the active approving official file, all inactive Forms 14031 will be maintained, secured and available for review by internal and external stakeholders for one year in the active file during the processing year and then for five additional years in the retention file.

The following naming convention will be used to upload the Form 14031 and Form 10247 (if applicable) to the ATP SharePoint site in PDF format:
Form 14031: SEID, Last Name (example: 00ABC Jones).
Form 10247 (if applicable): SEID, Last Name (Form 10247)(example: 00ABC Jones (Form 10247).

When the employee's authorization is revoked, the name must be withdrawn from the signature list in the Manual Refund Function.

Form 14031 must be submitted to and accepted by the Manual Refund function when adding new employees prior to their approving requests for manual refunds. The Form 14031 must be submitted to Accounting within 2 business days (i.e., received date plus 1 business day) of the requested “active” date.

Heads of Office Management Officials must update signature lists within 2 business days (i.e., received date plus 1 business day), when personnel changes occur. The Manual Refund function solicits, quarterly, from all Directors or Heads of Office located in their processing jurisdiction to purge the list of employees no longer authorized. This solicitation must occur quarterly (refer to dates in item (6) above).

Directors of Appeals request manual refunds and apply existing criteria, e.g., refunds over $1 million, refunds issued to one spouse, and other systemic limitations.

Initiators of manual refunds in Appeals and Taxpayer Advocate Service must be trained and take the same precautions to prevent duplicate refunds.

All initiators will be held to the same level of management scrutiny and responsibility to maintain internal controls and follow all IRM requirements.

If the request contains an unauthorized signature, the Manual Refund Function will reject, see IRM 3.17.79.3.2.2. However, Submission Processing Center personnel are reminded to please exercise good judgment in the rejection of these cases.

If the refund involves a hardship case, Taxpayer Advocate Service case, or a large refund which will result in the Service paying a large amount of interest, the Certifying Officer will call area involved to resolve signature concern to allow processing of manual refund request.

The receiving Submission Processing Center contacts the Submission Processing Center having jurisdiction over the local area initiating the Form(s) to verify the person who signed the forms is authorized to do so.

If the employee is an authorized official, process the refund as outlined above.

If the employee is not authorized, reject (See IRM 3.17.79.3.2.2).

Analysis at Master File, Enterprise Computing Center (ECC) - Martinsburg, reveals an overpayment of $10,000,000.00 or more, principal and interest, the module is frozen from refunding or offset (and sets an -X freeze).

Refund transcripts generate to the respective SPC for expedite account resolution.

Output or Notice Review researches accounts and prepares Form 3753 when large dollar refund transcripts generate. Form 3753 are submitted to Accounting.

The "-X" freeze is released when a TC 840 posts with a dollar amount or if module balance becomes zero or debit. This occurs once the Form 3753 is processed through ISRP to reflect posting of the manual refund issuance (TC 840).

IRM 20.2.4.7.7, Manual Refunds, instructs all employees to review manual refunds over $1 million by an interest specialist prior to submitting to Accounting.

IRM 21.4.4.6, Other Manual Refund Requirements, mandates that manual refunds $1 Million or more and contain overpayment interest be reviewed by a Technical function. See IRM 21.4.4.5, Preparation of Manual Refund Forms for additional information.

In addition to the Compliance Frivolous Filer Program, the Scheme Development Center (SDC) uses a multi-functional approach to decrease the number of refunds released that may be questionable. See also IRM 4.19.10.5, Questionable Refunds, and related processing in IRM Part 4, Examination.

Returns are math verified for accuracy by the Reject function.

A special search determines if the taxpayer has any outstanding MF, Debtor Master File (DMF), or NMF liabilities. If any outstanding liabilities are found, take action to offset available credit.

If a "-L" freeze (AIMS indicator) is present on a module, research the account for the presence of a history item or activity code "MAAS (MMDDYYYY)." This indicates that a "quick assessment" has been requested, and that a new liability may be in the process of posting. If the assessment (TC 300 for other than .00) increase has not posted, contact Examination for the amount of the additional liability. Satisfy this liability prior to issuing a manual refund.

If a -L Freeze and AIMS Status Code is other than 00 through 06 or 08

Any refund of $10 million or more for IMF, and $100 million or more for BMF, must be issued as a manual refund. Refunds under these amount are systemically generated on IDRS with a posted transaction code TC 846 unless a manual refund is required for another reason.

Prepare SPS or Form 1166. Master File cannot post amounts in excess of $99,999,999.99. However, more importantly, the BFS, check processing equipment cannot process refunds via IDRS in excess of $99,999,999.99 due to check printing and check paper money amount field limits. If refunds exceed this limit, it must be issued as two or more refund checks. See IRM 21.4.4.

The Manual Refund Team will provide Treasury a two (2) day notification whenever a single refund or several refunds with an aggregate total of $50 million dollars have been received for processing.

The Manual Refund Team will provide Treasury a five (5) day notification whenever a single refund or several refunds with an aggregate total of $500 million dollars has been received for processing.

Submission Processing Centers will notify Treasury via e-mail ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡when large dollar refunds meet respective thresholds, $50 million dollars and over or $500 million dollars and over. The Treasury and IRS Contacts below must be included in the e-mail notification:

ACH/Direct Deposit
IMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount
BMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount

Checks/Paper
IMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount
BMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount

Fedwire
IMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount and Process date
BMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount and Process date

Enterprise Computing Center (ECC) - Martinsburg, receives the FOMF from BFS via the Federal Reserve Board each month. The FOMF contains all current bank Routing Transit Numbers (RTN) and addresses.

ECC uses this file to validate the RTNs for taxpayers that request an electronic funds transfer (EFT) or direct deposit refund. When BFS receives the IRS EFT refund files, BFS validates the files against the current FOMF.

The Secure Payment System (SPS) includes enhancements that allows RTN verification during the certification of refunds. If the RTN fails validation the refund will be sent back to the IRS for correction or submission as paper check.

Reject Form 4466 quick refund requests submitted for trusts or estates. Quick refunds for trusts and estates are not allowed.

Rejected/disallowed Form 4466 for estates or trusts must be communicated to the taxpayers via IDRS Correspondex 1287C letter. Accounting will respond to correspondence returned to the function from taxpayer.

Review documents and ensure Form 4466 submitted for processing is solely for corporate returns (IRC 6425, exception for corporations only). Per the Reg. 1.6425-1(b) (2), Form 4466 is not considered a claim for credit or refund.

Expedite processing of Form 4466 is required. The refund must be issued within 45 days of the received date.

Immediately upon receipt of Form 4466, use IDRS CC ACTON to place documents under case control. See IRM 2.3.12, Command Code ACTON. Control cases using activity code "Form 4466" .

TIME FOR FILING a Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, is generally after the end of the corporation’s tax year, and no later than the due date for filing the corporation’s tax return (not including extensions). An application under this subsection shall not constitute a claim for credit or refund. (Filing Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, does not extend time for filing Form 4466, the Form 4466 will be considered timely if received the day following a due date which falls on a holiday or a weekend ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, or if the envelope contains a timely date stamp which is prior to the due date). Hold in a suspense file all Form 4466 received up to two weeks prior to the close of the taxable year. Normal processing must begin on the first day after the close of the taxable year. If the tax year ending month is different than the established accounting period, initiate research of the Form 1128, Application to Adopt, Change, or Retain a Tax Year, file maintained by Entity Control. If a request or change of accounting period is submitted with Form 4466, Entity Control inputs Command Code BNCHG to correct the accounting period prior to issuance. Only the common parent, as agent for the consolidated group, will file a Form 4466 for members of an affiliated group that paid their estimated income tax on a consolidated basis (or expect to file a consolidated return for the tax year). See Regulations 1.1502-75(d)(1).

A Form 4466 is valid if line 8 is at least 10 percent of line 7, expected income tax liability, and at least $500.

Verify that there is a Master File account for each taxpayer.

If the Form 4466 filer is a subsidiary of a corporation which elected to file a consolidated return, the filing period is that of the parent for credits included in the consolidated return.

Access IDRS CC ACTON to update the activity code to "4466REJECT" .

Prepare single Form 3753, to input TC 840 for zero amount to release X Freeze Code when the return posts. Update control base to TC 840 input. Circle in red TC 770, to prevent "I" Freeze. The transaction code for zero will indicate a claim for refund was received but not processed.

Send IDRS Correspondex Letter 1287C to the taxpayer. Update control base activity as: 1287CSENT.

Close control base after Form 3753 TC 840 .00 amount, 1287C letter sent, etc.

Photocopy Form 4466 and return the original to the taxpayer along with the letter of explanation.

Keep a pending case file containing the photocopy of rejected Form 4466, the 1287C letter, and any research for 90 calendar days, then destroy the case file.

For calendar year corporations with a tax year that ends December 31, 2023, the due date would be on or before March 15, 2024.

For a fiscal year corporation with a tax year ending October 31, 2023, the due date would be on or before January 15, 20249.

Returns arrive in Accounting Operations with the country code and tax rate indicated at the bottom of the return.

All dual status returns, non-resident alien returns, and foreign corporation returns are rejected to Accounting Operations. If a zero or no withholding rate is shown on the return, reject the return to the Error Correction function for re-input, if the manual refund is not required for any other reason (e.g., to release a freeze conditions, etc.).

Follow instructions for processing a manual refund in IRM 3.17.79.3.2. Generally, these are IDRS generated refunds on Form 5792.

Prepare Form 5792 or Form 3753 as necessary.

Compute the withholding tax on the allowable interest using 30 percent or the treaty rate, as applicable.

Subtract the amount of withholding tax from the net amount of the refund.

Input TC 770 for the amount of interest withheld (30 percent of the treaty rate), as applicable. Input TC 290 for zero, TC 770 for the amount of interest withheld, Hold Code (HC 2) to hold notices and credit until TC 820 posts. Cycle delay (CD) 4 to delay posting of TC 290 and TC 770 until the TC 150 posts.

Prepare Form 3809 using TC 820 on the debit portion, for the amount of interest withheld, and TC 700 for the credit portion to the 4610 Account. See IRM 3.17.243, Miscellaneous Accounting, for more information on preparation of transfer documents.

NMF- Prepare Form 3809 for the amount of interest withheld (30 percent or the treaty rate), as applicable. Input TC 770, Credit taxpayer's NMF account; Debit 6520 Account.

NMF- Prepare Form 3809 using TC 772 on the Debit portion for the amount of interest withheld; use TC 700 for the Credit portion to the 4610 Account.

Mail the original Form 5205 to the taxpayer. Associate Form 5205 with the related Form 1166/SPS refund schedule.

Attach Form 5205, Part 2, to Form 3809 (credit side) going to the 4610 Account. Forward Form 3809 for numbering and further processing.

Forward Form 5205, Part 3, IRM 3.17.79.7.2

Attach Form 5205, Part 4, to the tax return along with Part 3 of Form 5792 or Form 3753.

Accounting Operations monitors the account until all transactions post.

The RRACS area inputs the refund, principal and interest and related journal actions.

Transfer the amount withheld from interest paid to the 4610 Account, Unapplied Advance Payments, via Form 3809. This is held in escrow until the withholding agent's return is filed (See IRM 3.17.79.6.2).

Credits accumulate and are transferred monthly in a lump sum by Accounting Operations, from the 4610 Account to the withholding agent's account on the Master File using Form 3809 and posting a TC 700.

Part 3 of Form 5205 is maintained in the appropriate area as outlined in IRM 3.17.79.6.2. Balance the Form 5205, and the monthly lump sum transferred from 4610 Account to the withholding agent's account.

Make an NMF assessment

Apply a TC 770

Transfer transaction to the Master File on Form 514-B, Tax Transfer Schedule.

These manual refunds must be requested on Form 3753.

Documents supporting this are received from the Bureau of the Fiscal Service and provide credit substantiation for making these refunds. These are reimbursement payments to financial institutions, not to taxpayers.

Form 3753 will be initiated by Lockbox Coordinators or their designees.

Only specific sections of the Form 3753 will be completed.

No payee ID (TIN) will be indicated.

No MFT or Tax Period will be shown.

No interest will be paid on reimbursements.

Charge Appropriation 20X1807;

Refund from Account 6910;

"Lockbox Reimbursement" at Item # 5, Other Remarks.

No pending TC 521 on any tax module,

TC 520 MFT/Tax Period, and/or

reason for manual refund request (overpayment, levy, trustee payment etc.)

Offsets regarding Telephone Excise Refund Tax or TETR, see IRM 21.4.6.

Offsets regarding Economic Stimulus Payments or ESP, see IRM 21.4.6.

Evidence of the credit condition to show substantiated overpayment available, this will be either a copy of the unprocessed tax return (including all forms and W-2s) or an IDRS print showing the amount of the overpayment available.

A print of TXMOD showing the amount of liability bypassed.

The manual refund document must be received no later than the Friday before the current Master File Assessment Document date (23C or Assessment date, which is always a Monday) of the original return.

If Form 3753/Form 5792 are not received before established cutoff times before the Assessment Document Date (23C) or

If the required documentation and written statement in the remarks section is missing from Form 3753/Form 5792, but not before attempting to secure needed documentation in time to process the OBR;

If the manual refund document has not been approved by the functional Approving Officer of record and/or the Taxpayer Advocate Liaison or Coordinator in sufficient time to meet the cutoff times.

The Manual Refund function employees (approving manual refunds) are not required to research for outstanding balance liabilities (OBLs) on OBR manual refunds when Form 3753/Form 5792 are received from other functions. The originator is required to confirm there are no liabilities prior to initiating manual refunds.

Initiator will provide documentation as indicated in IRM 3.17.79.3.17(8), above. Initiators must research accounts for OBL's and attach documentation to Form 3753/Form 5792 routed to Accounting for approval.

Per IRM 21.4.4.5.1(6) Second Note and IRM 21.4.4.5.2(9) Second Note, Preparation of the Form 3753, Form 3753 and Form 5792 must be reviewed to verify the manual refund is appropriate, proper IDRS research was completed, and the form was completed accurately. The Approving Official's digital signature certifies to the Accounting Function the form was reviewed and is correct.

These refunds are not issued from the refund appropriation. These items are not overpayments of tax.

Disbursements are authorized by IRC 7623.

Case Control Claim Numbers will be assigned by Examination on each item.

Headquarters Examination assures no duplicates will occur.

Request is submitted on Form 3753, along with related supporting documentation.

Compliance maintains case control and internal controls (e.g., separation of duties).

A database was developed to perform future research. Maintain Case or Claim Number, TIN and dollar amount. This is essential in the event a check is returned by the taxpayer (via Standard F1098 as TC 841) or is returned undeliverable by the Postal Service (via Standard F1098 as TC 740).

Correspondence from Compliance management official authorized to request payment and providing pertinent information (e.g., 2395 or general ledger account credit and debit instructions, etc.).

Form 3753 completed by the requesting office and signed by the authorized Approving Officer.

Section I Item 11, General Ledger/Appropriation block 20X5433 Account Symbol; or 20X5433.1.

Section II, Item 1c Handbook reference: IRM 25.2, Information and Informants' Rewards.

Section II, Item 2d Evidence of Credit Condition: Other, IRC 7623, TBRII 1209;

Section II, Item 3, Interest: check box "Not Allowable" .

Section II, Check applicable box: Necessary supporting documents attached.

Cross out entire Section III, Interest Computation.

Section IV, Other Remarks: Write Case claim number and DLN where supporting documentation is filed.

THESE ARE ADMINISTRATIVE PAYMENTS, NOT TAX REFUNDS. These must be certified to and issued by the Submission Processing Center, Kansas City Bureau of the Fiscal Service.

Input the Account Symbol 20X5433.1.

Input the Compliance Claim Number (from Section V of Form 3753) assigned by Examination in "Remarks" area of SPS. This literal will be printed on the check to identify if it is undeliverable or returned.

Cancellation credits are returned to the Submission Processing Center Agency Location Code (ALC) addresses via paper Standard F1098 schedule.

Forward a copy of the Standard Form (SF)1098 schedule to Compliance (Examination) for research or to be reissued. These actions are only possible when the Examination Case Claim Number appears on the cancellation schedule.

Limited Payability (LP) cancellations will occur after 14 months from the check date if the check is not presented to Treasury for payment. LP credits are returned via Form 1081 from TRACS to Enterprise Computing Center (ECC).

Cancellations are reversed back to Account 4755, via Form 3245 Posting Voucher, Refund Cancellation or Repayment.

Update the Examination Case Claim database showing the check was returned/cancelled. Inform the originating office that the check was returned and for the reason. Compliance may wish to initiate action to reissue or to hold for future reference for inquiries from the recipient.

Processing instructions appear in IRM 21.4.4.7.2, Credit Card Chargebacks for Credit Card transactions.

See list in IRM 21.4.4.7.2(1).

Procedures were coordinated between the IRS Electronic Tax Administration (ETA) and Accounts Management staff.

These disbursements are governed by regulations under IRC 6311, specifically Treas. Regs. 301.6311-2.

Processing is centralized to the Ogden Submission Processing Center only.

Backup and supporting documentation from the Processor must be submitted to the Ogden SPC site.

See IRM 21.4.4.7.2, Credit Card Chargebacks.

Establish internal controls to prevent duplicate payments.

Control cases using a unique case control numbering system. This control number will be associated with all source documentation (e.g., Form 3753, Form 2424, Form 3210, etc.).

Maintain case controls. Route cases using Form 3210. Maintain case controls. Route cases using Form 3210. Refer to Document 12900, IRS Records Control Schedule (RCS) 29, Item 91, for the National Archives and Records (NARA) approved retention and disposition of Form 3210.

Disbursements are scheduled and certified by the Manual Refund function. If possible, the Refund Schedule number will be recorded on the Form 3210, returned to the originator for appropriate retention. The Refund Schedule number is required in the event IRS must trace disbursements made to Credit Card Processors.

Verify that Form 2424 total the grand total refund amount.

Verify that the back-up or supporting documentation is attached.

Perform other validity checks as appropriate.

See IRM 21.4.4.7.2.

The Manual Refund function must be able to distinguish these 'claims' and schedule them as an ACH Direct Deposit made to the Processor only.

Section I, Account Information.

Item 1, Taxpayer Information Number (TIN).

Item 3, MFT: Insert "X" .

Item 6, Name and Address of Taxpayer: Insert "X" .

Item 10, Make Check Payable to: Insert "RTN and Account Numbers" provided by the Credit Card Processor. Verify RTN and Account numbers with the documentation provided by the Processor. Supporting, back-up documentation must be provided to verify account numbers for scheduling and certifying disbursements.

Item 11: Enter Account Symbol 20X1807 and amount.

Section II, Manual Refund Authority.

Reason, Item 1c, Handbook Reference: Insert "IRM 21.4.4"

Item 1d, Other: Enter "IRM 21.4.4, How is a Chargeback Request Processed?, and Federal Register 12/15/98, T. D. 8793, 26 CFR, Part 301."

Evidence of Credit Condition: Insert "X, Other, Chargeback for Credit Card Transactions." Transcript of Account.

Item 2d, Other: Insert 21.4.4.7.2, Credit Card Chargebacks.

Interest: Not allowable.

Check box, All items above completed.

Check box, Necessary supporting documents attached.

Check box for initiating BOD (Business Operating Division)

Section III, Interest

No interest will be paid on these items.

Section IV, Other Remarks

Insert: Back-up documentation is attached. List case control unique identifying number here.

Disburse from the Regional Financial Center. These are not tax refunds.

Certify via SPS, select ACH Option.

Disburse from Treasury Account Symbol 20X1807.

Use "F" (for ACH Direct Deposits, Ogden Only), as the Refund Schedule number definer.

The CC REFAP is restricted for use by Submission Processing, Accounting Operation employees only.

Employees with CC REFAP in their IDRS profile are restricted from use of a variety of sensitive combination command codes allowing account adjustments.

The employee inputting IDRS CC REFAP cannot be the same employee as the employee inputting CC RFUND. IDRS Generated Refunds input via CC RFUND/CC REFAP is a two-sided entry system developed as a security measure. This meets the internal control standard of: Separation of Duties. Employees initiating requests for refund (CC RFUND) cannot be the same employees inputting (CC REFAP) the refunds.

Since the two IDRS command codes (CC RFUND/CC REFAP) must be input on the same processing day, all documentation required by the Certifying Officer to support each refund request must be delivered daily (day of input) to the Accounting Operation, Manual Refund function. To ensure timely completion of all actions are taken prior to end of day, a daily cut-off-time is established for receipt of Form 5792 by each Accounting site.

If inputting CC RFUND between 6:00 p.m. and midnight local time notate a "Y" in Section IV Box 1 of the Form 5792 along with the number of the employee inputting the CC RFUND (Example: 1234567890 Y). This will alert Accounting that the CC RFUND will have a different date than CC REFAP, but the two command codes were input during the same 24 hour cycle - See IRM 21.4.4.5(6)I.

The Approving Official has not digitally signed Form 3753 or Form 5792.

The digital signature format used on Form 3753 – Section V, item 1 and Form 5792 – Section IV, item 4 does not include the SEID and Name or e-mail of the approving official on the active Form 14031 - Section II on file.

Signature of Approving Officer, on Form 3753 or Form 5792, is not reflecting in the active Form 14031 file and RSTRK (M) listing.

If the manual refund requests are not completed with the required information per IRM 21.4.4.4.1 and the research documentation is not attached to the Form 3753 or Form 5792.

If the name and address on Form 3753/Form 5792 does not match the entity information, and there is no explanation in the "Remarks" field, the explanation must include reason for the different address as well as where the backup documentation will be filed per IRM 21.4.4.5, Other Manual Refund Requirements.

The refund amount and/or the interest computation is in error. Verify "From" dates and "To" dates are appropriate.

First name line is made out to the "Deceased Taxpayer."

Blocking Series is blank or other than 9, and Form 8379 is attached, or Injured Spouse is indicated in Remarks.

Credit offsets moved to a different TIN and/or tax period and not moved back to the appropriate taxpayers TIN and/or tax period. Caution must be used when issuing a refund to a taxpayer with a different SSN/EIN. This can cause disclosure issues, as well as forfeit the proper audit trail. See IRM 11.3.1, Introduction to Disclosure for additional information.

If an overpayment is offset and credit-interest is allowed (TC 736), the overpayment interest must be addressed if the offset is reversed.

The initiator(s) employee number on Form 5792, Section IV, Block 1 (IDRS CC RFUND in field 12) and/or terminal and pending sequence number. The originating employee may or may not be the same employee inputting CC RFUND. The mandatory IDRS field 12 programming enhancement was based upon findings made by the Treasury's Inspector General for Tax Administration (TIGTA) to improve the IDRS Generated Refund audit trail.

A TC 810 (E freeze), TC ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Z freeze) is posted to the tax module or entity module and the case file does not include Criminal Investigation approval for the refund. A TC 790 without Examination approval where adjustment action is involved.

An F- Freeze is a Frivolous Return Program freeze set by posting a TC 971-089. Refer to IRM 21.5.3.4.16.7 and/or Doc 6209 Section 8.4 Master File Freeze Codes.

The attached return copy is unsigned, or if it is a joint return, does not contain both taxpayers' signatures.

If Computer Condition Code (CCC) 3, "U" coded return (Form 1040), or Computer Condition Code X, (Form 1120) is present on IDRS reject see IRM 3.17.79.3.2.2, except when a subsequent adjustment has been input indicating a Return Processable Date (RPD). The RPD must be notated in the remarks and a completed REQ54 screen print showing the RPD must be attached as back up documentation to the manual refund or Computer Condition Code X, (Form 1120) is present on IDRS, reject see IRM 3.17.79.3.2.2. If a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on IDRS reject see IRM 3.17.79.3.2.2, immediately contact the Scheme Development Center (SDC) for review.

If a TC 971 AC 664 is present on the IDRS module for the same overpayment, Do Not Process reject see IRM 3.17.79.3.2.2, presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund is in process. Processing the refund request will result in an erroneous or duplicate refund.

Examination Branch approval is required if Project Code 21 and an E freeze code exists on the entity. Immediately contact the Examination Branch Pre-Filing Notification Coordinator, if the situation occurs and approval has not been received from Examination or meets Joint Committee threshold of $2 million.

-L Freeze and the account has a history item or activity code of MAAS (MMDDYYYY) or TC 971 AC 665, which indicates that an assessment has been requested, and that a liability may be in the process of posting. If the assessment (TC 300) is for other than $.00 amount the increase has not posted. The additional liability must be satisfied prior to issuing a manual refund. Reject if there is no indication this action has been completed. See IRM 3.17.79.3.2.2.

-L Freeze if AIMS Status Code is other than 00 through 06 or 08.

Originator's telephone number omitted or incomplete. Originator’s direct telephone number must be used and not a 1-800 Office Number.

IF the Refund Statute Expiration Date (RSED) has expired.

If unresolved credit balance modules when the RSED has expired. Areas must coordinate with the Statute function. If assistance is needed in computing the RSED, contact the Statute function.

No cross-reference in Remarks where credit source documents are filed (e.g., TIN, tax period and transaction code and TC 971 (or DLN) for Injured Spouse cases, etc.) or Bypass Indicators (BPI) are missing.

There are blank areas on the Form 3753/Form 5792 entity area.

There is white out, strike through, and/or corrections reflected on the Form 3753/Form 5792 when received in Accounting.

Accounts indicating bankruptcy or litigation Master File freeze. When accounts show TC 520 "-V" or "-W" Master File Freezes, refund requests must be initiated by the Compliance area: Insolvency managers (for bankruptcy freeze) or the Technical Services function (for litigation freeze).

The taxpayer account reflects a Refund Hold condition and has not been addressed in the "Remarks" or back up documentation addressing the Refund Hold condition is not attached. See Document 6209, IRS Processing Codes and Information for various freeze conditions that will hold credits from automatic release.

Do not reject Direct Deposit Non-Receipt Claim manual refunds blocked 6XX. These are valid manual refunds.

Do not reject if account is frozen with "-E" freeze. This is used to release an erroneous levy condition.

CC REFAP enables the user to add a prior day indicator "Y" to the input screen, when the CC RFUND was input during the previous processing day evening real-time. Verify CC RFUND, TC 840 input date prior to CC REFAP input to determine if the "Y" indicator is applicable.

Do not reject if Box 3 and Box 7 in Section II is not checked for Bankruptcy Insolvency requests. These boxes are not applicable.

Form 8038-CP has a CCC “O” edited in green and there is a notation “TEGE – Do Not Refund Credit” or similar written at the bottom of the document.

Send Part 1, file copy of Form 5792 with applicable back up documentation to Files to be associated with the Form 5147, IDRS Transaction Record.

Pull all ANMF transaction records with associated case file and forward for input to RRACS.

After ANMF cases have been properly input to RRACS, associate the Form 5147 and forward original copy of the Form 5792, to Files. Attach a copy of the manual refund request to the ANMF Transcript if applicable. A third copy of the Form 5792 must be maintained by the manual refund initiator for appropriate monitoring actions.

Rejecting manual refund requests, see IRM 3.17.79.3.2.2.

AC "6" condition is caused by failure of related CC RFUND to match on CC REFAP data elements.

When a CC REFAP does not match all data elements of CC RFUND, Accounting will reject, see IRM 3.17.79.3.2.2. When the "DQ" is caused by the input of CC REFAP, the Accounting Operation, Manual Refund function will re-input the manual refund request, CC RFUND.

The CC RFUND must be re-input as originally indicated on the Form 5792, when the "DQ" is caused by the input of CC REFAP, with the exception of any additional overpayment interest due. (Do not modify interest if under one dollar ($1.00) tolerance) Caution must be taken to include input of any Bypass Indicator (BPI) reflected on the original manual refund request. A BPI identifies the eligibility for a TOP offset, see IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator.

If the CC REFAP was not input or was input incorrectly, the Accounting Operation, Manual Refund function will input both CC RFUND and CC REFAP to complete processing of the manual refund request.

If CC RFUND was not input, a Form 5792 was not received, or CC RFUND was input incorrectly, the Accounting Operation, Manual Refund function will reject, see IRM 3.17.79.3.2.2.

The employee inputting CC REFAP cannot be the same employee inputting CC RFUND for the same account.

Multiple CC RFUND and one CC REFAP - Initiating employee did not use CC TERUP on the incorrect CC RFUND.

Multiple CC REFAP and one CC RFUND - Employee initiating CC REFAP input information and realized it was in error input another CC REFAP (CC TERUP is not available for CC REFAP), or inadvertently input multiple CC REFAP for the same case.

TIN and File Source

ULC (valid for Submission Processing Center of input)

MFT

TC 840 Amount

Date of input (YYDDD) (DDD = Julian date)

Zip Code

Submission Processing (Center) Code

Delete the TC 840 record from TEP if possible; if not, prepare a credit portion of Form 3809, TC 841, Doc Code 48 to reverse TC 840. Cross reference information must be sufficient to establish a clear explanation of events.

Manually adjust the IDRS PJ Recap and the Net Tax Refund Report to remove any deleted items and amounts from the affected Master Files (IMF, BMF, ANMF, IRAF).

Enter a History item (CC ACTON) on IDRS to indicate the refund has been deleted and the case has been returned to the initiator.

Input CC DELETE to eliminate erroneous TC 840 on IDRS Refund Information File (RFIF).

Return case file to the initiator (with reason for deletion) for necessary action (e.g., reversal of adjustments, stop notices, additional adjustments, case monitoring, etc.).

Refund Schedule Number generates from the EOD-2640 run via Control D. IDRS Generated refunds (IGR) and refund schedule number has always generated in the EOD-26 runs. Since July 2002, refund schedule numbers use the definer "W" designating IDRS Generated refunds.

See IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

Control D provides the IDRS End-of-Day (EOD) output.

Secure Payment System (SPS) Screen requires a reel number. Reel number is available from Control D, the BFS MCC/ECC Acknowledgement Report.

See Exhibit 3.17.79–8 (Refund Schedule Number Formats as Entered into SPS).