Employees in the Accounts Management organization respond to taxpayer inquiries and phone calls, and process claims, and internal adjustment requests related to Refund Claims. This IRM provides specific guidance for responding to refund inquiries, tracing direct deposit and paper refunds and reissuing refunds that have been cancelled due to limited payability.

The authorities for this IRM include:

The Taxpayer Services Commissioner oversees all policy related to this IRM, which is published on an annual basis.

The Director of Accounts Management oversees the instructions to the employees contained in the IRM content.

Accounts Management Policy and Procedures IMF (PPI) Tax Analyst(s) oversees the content in this IRM and acts as a point of contact for all Accounts Management sites.

Managers and leads ensure compliance with the guidance and procedures in this IRM for Individual Retirement Accounts case resolution.

Employees resolve Refund Traces and Limited Payability requests following procedures in this IRM.

Program Effectiveness: Program Effectiveness is measured and controlled through:

Program Goals are measured and controlled through:

Common acronyms listed throughout IRM:

Related resources for this IRM include (list is not all inclusive):

When a refund check is lost, stolen, destroyed, or not received by the taxpayer, a refund trace can be initiated. This section of the IRM provides information and instructions for tracing.

In addition to researching IDRS for prior activity, review Account Management Services (AMS) for prior taxpayer contact.

Command code (CC) CHKCL is used to initiate a refund trace on Integrated Data Retrieval System (IDRS). For CC CHKCL instructions, see Exhibit 21.4.2-1, Command Code (CC) CHKCL Input. To access CC CHKCL, you must be able to access IDRS. See IRM 21.4.3, Returned Refunds/Releases, if there is an S- freeze (Undelivered Refund) on the module. See IRM 21.5.6.4.38, S- Freeze, for additional information on S- freezes.

Refund inquiries are worked in all campuses. Inquiries received in your campus must be worked at your campus, except for the few instances identified in IRM 21.4.2.4, Refund Trace Actions. Do not forward work to another campus unless the campus specifically requests that you forward them the case. The case request must be in writing and signed by the requesting employee's manager. For fax numbers and addresses, see Refund Inquiry Unit Addresses, located on Servicewide Electronic Research Program (SERP) under the Who/Where tab.

The IRS works with other Federal agencies to trace refunds. Bureau of the Fiscal Service (BFS), including its Regional Financial Centers (RFCs), play key roles.

BFS, an agency in the Treasury Department, issues and maintains records relating to United States (U.S.) Treasury checks and Electronic Funds Transfer (EFT) deposits. BFS headquarters are located in Washington, DC.

Pursuant to 31 CFR. §245.5, the IRS is authorized to certify second payments to payees who did not receive their refund checks or whose check was lost, stolen, or destroyed. In case of forgery, BFS certifies second payments, issues a refund check, and notifies the IRS to input transaction code (TC) 971, action code (AC) 078 or AC 079 on Master File.

BFS is responsible for making refund offsets for debts including federal non-tax debts, child support, state tax debts and unemployment insurance. This is referred to as the Treasury Offset Program (TOP). See 26 IRC 6402. Refunds will be offset after the IRS certifies them to BFS for payment but before the refund check or direct deposit is issued/made. See IRM 21.4.6, Refund Offset, for information on the TOP.

The Kansas City Financial Center and the Philadelphia Financial Center print and mail the refund checks for all campuses.

BFS keeps records for Treasury checks for seven years generally which may be retrieved from a RFC and on EFT deposit refunds for six years on the following information:

The RFC inserts Notice 54, About Your Refund Check, into Individual Master File (IMF) refund checks if the actual refund amount differs from the amount the taxpayer claimed. RFC inserts Notice 134, About Your Refund Check, into all Business Master File (BMF) refund checks. In addition, BFS will issue a separate notice of offset if the original amount was reduced due to a TOP Offset.

The Financial Processing Division (FPD) in Philadelphia, PA processes check claims received from the IRS.

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels.

The processing steps on tracing a refund check will depend on whether the cutoff date for processing of the "check claim" has passed at the Bureau of the Fiscal Service (BFS). If the cutoff date has passed, the case is referred to as a Limited Payability (LP), see IRM 21.4.2.4.7, Limited Payability (LP) Rules.

The number of days allowed for timely processing of these cases is prescribed in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. At the campus option:

Cases (either a "check claim" or "LP Trace" ) resulting in check tracing actions must be:

If you cannot find a refund on the master file, it may have been a Non-Master File (NMF) refund. Use local established procedures to locate refund information. If no information is found using the following research procedures, ask the taxpayer to send copies of any correspondence about the refund. Information received may contain the necessary Document Locator Number (DLN). The Non-Master File DLN is tax class "6" and all refunds from NMF accounts must be manual refunds. Refer to IRM 21.4.4, Manual Refunds. Refund Inquiry employees can also find the required check information on Treasury Check Information System (TCIS).

Most NMF accounts will now be found on the Automated Non Master File (ANMF). Depending on the location of terminals, Refund Inquiry employees may be able to do their own research on the ANMF accounts. Call sites should contact (by phone) their servicing center and request ANMF research. The center should fax the research results back to the call site requesting the information. See IRM 10.5.1.6.9.4, Faxing, for further guidance.

Refund Inquiry employees must obtain a unique "login" through Business Entitlement Access Request System (BEARS) requesting ANMF for research only. Requests must be submitted through local management.

The ANMF allows employees to read any entity or transaction on the file by following the instructions displayed with the "Research NMF" option.

There are other refunds not found on the master file, which may have been an Offer in Compromise (OIC) refund. The OIC program issues refunds from the 4710 Account that will not show up on IDRS, refer to IRM 5.19.7.7, OIC Deposits. An OIC can be identified by a Transaction Code (TC) 48X on IDRS. It takes approximately 4 months to verify the refund has been processed.

Most OIC accounts are on the Automated Offer in Compromise System (AOIC). Refund Inquiry employees will e-Fax the case to the Monitoring Offers In Compromise (MOIC) Deposit Request Information Liaisons based on the state mapping found on SERP Who/Where Offer in Compromise (OIC) Compliance Campus Locations for the Monitoring of Accepted Offers. TEs will close their IDRS control and leave a note to indicate the case was reassigned to MOIC (Brookhaven or Memphis) in the AMS notes.

At times taxpayers neglect to provide all necessary information when they return Form 3911, Taxpayer Statement Regarding Refund. Employees may either send the taxpayer the appropriate letter or may request the missing information by using the Form 8599, Request for Missing Information Regarding Refund.

Upon receipt of incomplete Form 3911 (or Form 1310 or FS Form 1133, etc.), action must be taken to return the form(s) to the taxpayer for the missing information. For example, when taxpayers file a joint return, both parties must sign the Form 3911. If only one signature is present, the Refund Inquiry Unit will return the Form 3911 and advise the taxpayer that both parties must sign the document.

Refund Inquiry Unit will update the IDRS Activity Code with the form number, and "TOTP" (e.g., "3911TOTP" , "1310TOTP" , etc.). If this is the initial contact with the taxpayer and you have not initiated a claim with the Bureau of the Fiscal Service (BFS), "X" out the received date and close the case.

If a claim has been initiated with BFS, the Refund Inquiry Unit will use the appropriate Category Code and keep the case open in "B" status until the final disposition is received. This will provide an audit trail for any subsequent contact by the taxpayer that the IRS returned the form as incomplete.

The Form 8599, is a two-part form. Both parts will be forwarded to the taxpayer along with the incomplete form(s). Always include:

If the contact does not meet oral statement criteria:

When speaking to the taxpayer or their authorized representative, or if a Form 3911 is received, and an identity theft case is closed or resolved, you may proceed with processing the Form 3911 or refund trace and take appropriate actions to resolve the taxpayer’s refund inquiry. The following transaction(s) on Integrated Data Retrieval System (IDRS) via CC ENMOD and/or CC IMFOLE, identifies if the case is resolved:

For paper inquiries, a written statement can be accepted for CC CHKCL input provided all oral statement criteria are met and the correspondence is signed by the taxpayer or their authorized representative. If oral statement criteria is not met, or the correspondence is not signed, reply to the correspondence and advise the taxpayer to file Form 3911, Taxpayer Statement Regarding Refund, which is available through the internet on www.irs.gov. Using AMS or Correspondence Imaging Inventory (CII) case note, input the following history item on the account - "Form 3911 needed" .

Refund Inquiry Employees: If the taxpayer returns the Form 3911, review the form for completeness. If Form 3911 is incomplete, follow procedures in IRM 21.4.2.3.3, Form 8599, Request for Missing Information Regarding Refund, to request the missing information. If a joint return, both taxpayers must sign. Update CC ENMOD if an address change is required.

If research indicates one or both taxpayers are deceased, and Form 3911 was signed prior to the taxpayers’ death on CC INOLES, follow procedures in IRM 21.4.2.3.3, Form 8599, Request for Missing Information Regarding Refund. Advise that a newly signed Form 3911 and Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, or court documents are required to trace the missing refund and re-issue the refund if returned.

If a Form 3911 mailed to the taxpayer is returned by the United States Postal Service as undeliverable, the Refund Inquiry Unit will research for a new or corrected address or a phone number to contact the taxpayer. If a corrected address is found, re-mail the Form 3911. If no new address is located, destroy the Form 3911.

CC TXMOD must precede input of CC CHKCL. If CC TXMOD is not available, use CC MFREQC. Input CC CHKCLR to request the CC CHKCL screen format. The following items generate from the preceding CC TXMOD:

For the input of the CC CHKCL and time frame guidance, see Exhibit 21.4.2-1, Command Code (CC) CHKCL Input.

Input information on the CC CHKCL format.

When CC CHKCL is input, the request is sent electronically to the RFC. The request is then forwarded to Philadelphia, PA, where Bureau of the Fiscal Service (BFS) determines the status of the check, cashed, or not cashed. Trace requests for direct deposits are processed at RFC. Refer to the table below for resulting action.

The taxpayer may subsequently inquire, either by phone or in correspondence, after initiation of a refund trace on their missing refund check or non-receipt of a direct deposit refund. Determine if the taxpayer expected to receive their refund as a paper check or direct deposit. Use the following table in your attempt to resolve the taxpayer's issues. If no TC 971 AC 011, for the refund in question, is posted after the TC 846 date, see IRM 21.4.2.4, Refund Trace Actions.

Upon receipt of cases from the field where it has been more than three weeks since the CC CHKCL was input and no disposition code received, the Refund Inquiry Unit is to reinput the CC CHKCL and advise the taxpayer of the action. Once the trace is reinput, the refund trace time frames start over again, the TP must allow 6 weeks for paper checks and up to 120 days for direct deposits.

The Refund Inquiry Unit will monitor cases after input of CC CHKCL to ensure proper actions. See Exhibit 21.4.2-2, Disposition Code Chart - Refund Inquiry Employee Actions, and Exhibit 21.4.2-5, Disposition and Status Codes Additional Action Time Frames, to determine if follow-up action(s) is required.

The following actions occur once the refund trace reveals the check has been cashed:

BFS sends a Claims Disposition Notice to the IRS showing the final or interim disposition. In addition, BFS notifies the taxpayer of the status of the claim.

Input of CC CHKCL generates a request of non-receipt claims and stop payment information. This information is transmitted to the RFC for processing. The RFC will:

RFC procedures for processing the request are given in the table below:

The non-receipt claim must:

Depending on the Status of the refund check one of the following occurs:

Title 4 of the Competitive Equality Banking Act of 1987 (CEBA), Public Law 100-86, (Aug. 10, 1987), commonly referred to as Limited Payability (LP), established rules for cashing government checks:

Taxpayers may submit claims for refund checks after the one-year time limit has expired. These claims are subject to Limited Payability provisions. Claims must be submitted to the Bureau of the Fiscal Service (BFS) by the 15th day of the 14th month, by using CC CHKCL with non-receipt Codes N, L, S, D, E, H, or X. See chart in paragraph (3) below.

The chart below provides the refund issue date, the date a check can no longer be negotiated, and the last date an LP claim can be submitted.

The CP 32, We Sent You a Replacement Refund Check to Replace the One That Expired, and CP 237, Notice of Issuance of a Refund Check to Replace an Expired Check (BMF), is sent to the taxpayer when an expired check is reissued. Refer to IRM 21.3.1, Taxpayer Contacts Resulting From Notice Issuance.

All LP claims received after the 15th day of the 14th month must be processed by the IRS. Take the following actions:

If the taxpayer requests a certified copy of a check from within the past seven years:

Any CC CHKCL input after the 15th day of the 14th month with a non-receipt code other than P or C will receive a Disposition Code 18 (if check is cashed) and will NOT create an BFS claim. See Exhibit 21.4.2-2, Disposition Code Chart - Refund Inquiry Employee Actions, for Disposition Code 18.

If BFS records show the refund check is still outstanding on the 15th day of the 14th month, then BFS will cancel the refund and return a credit to the IRS which will post in approximately the third week of the 15th month after issuance. It will post on the tax module as a TC 740 with blocking series 66666. See IRM 21.4.2.4.7.2, Limited Payability Computer Paragraph (CP) 32/237.

Employees other than those at the Refund Inquiry Unit must follow the table below:

The following account actions occur automatically:

LP cancellation credits post to an account as a TC 740. The posted credits have a DLN with a blocking series-serial number "66666" .

Credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ that are frozen for other reasons, including second LP cancellations, will generate complete master file transcripts and CP 32, and CP 237. These CP notices are identical to CP 32A and CP 237A except for the routing instructions.

If taxpayer contacts the IRS by phone, paper, or in person, use the following table to release a refund on a LP response.

Take further action on the account if needed:

The following directions are for processing claims from taxpayers disputing cashed refund checks that are now Limited Payability (LP). If procedures in IRM 21.4.2.4.7, Limited Payability Rules and Procedures, have been followed to provide the taxpayer with a copy of their cashed refund check, proceed with determination below.

If the check meets Limited Payability criteria and the taxpayer’s correspondence claims the check involves forgery, compare endorsement(s) on the check to available samples of taxpayer signatures, including any other check copies found in TCIS. If you are able to make a determination of the taxpayer’s signature, deny the claim. Proceed to IRM 21.4.2.4.11 (5) below for paragraphs to include in letter.

If you are unable to make a determination, or no signature appears on the check:

When the taxpayer returns the completed and signed Form 13818, the Refund Inquiry tax examiner must:

Based on the review of all information supplied by the taxpayer, follow the chart below:

After all information is considered:

If you believe the taxpayer’s claim is valid or no specific reason to deny the claim can be found, allow the claim following the procedures in IRM 21.4.2.4.14, Account 6565 Processing for Refund Inquiry Function.

If an altered limited payability check is identified during your research, take the following actions:

Send the case to the Center for Science and Design (CSD) (formerly National Forensics Laboratory (NFL)) for signature comparison only if you cannot determine if the endorsement on the U. S. Treasury check is a forgery. It may be necessary to request CSD assistance in the following instances:

When sending the case to CSD take the following actions:

Requests for lab assistance are usually completed in less than 60 days from the time the lab receives the complete case. If you have not received a response and it is more than 60 days, you may contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Tell them you are calling to follow up on a Limited Payability Trace. Provide the taxpayer’s last name and Taxpayer Identification Number.

When the response is received from the CSD, the entire case file will be returned with a cover sheet entitled "Report of Laboratory Examination, IRS Claim Resolution (LP Trace)."

If claim on a Limited Payability trace is denied for any reason, send Letter 2218C. Keep a copy of the letter and a copy of the check with your case. Close case TC 290 .00 and file document.

If taxpayer disputes denial, reopen case and reconsider decision based on the information provided by the taxpayer.

When a regular CC CHKCL trace finds the refund check has been negotiated, the Bureau of the Fiscal Service (BFS) will send a copy of the check with a FS Form 1133 Claim Form directly to the taxpayer. FS Form 1133 is used by the taxpayer to file a claim for replacement of a refund check that has been negotiated by someone other than the taxpayer and the taxpayer or BFS may send the forms to the IRS. FS Form 1133 on BFS claims received in the Refund Inquiry Unit should be processed as indicated below:

If the taxpayer calls to check on the status of FS Form 1133 after it has been returned to the BFS Check Claims Branch, advise them they must personally contact the Branch at the toll-free number 855-868-0151 (press option 1, then option 1) (English and Spanish speaking assistance is available at this number). Provide the taxpayer with the check symbol and number. Use IMFOL# to find the check symbol and number.

Once it is determined a refund check has been cashed and BFS decides whether to honor the payee’s check claim, the disposition information is sent to the Refund Inquiry function on an BFS CDN. As of March 30, 1998, BFS issues replacement settlement checks directly to the taxpayer on refunds determined to be forged or when appropriate, issues denial letters.

Using the Payee Identification or check information on the CDN, research CC SUMRY, CC IMFOLT, or CC IMFOLC to locate the refund in question. If using IMFOLC the correct tax module will appear.

If "Settlement Denied" or "Forgery Established" is noted on the CDN, input CC MFREQ(C) if the module is not up on IDRS.

If the explanation says, "Forgery Established" , use CC REQ77 to input TC 971 AC 078 on CC TXMOD. Input the date of the CDN as the transaction date. Close case with TC 290, with appropriate non-refile blocking series, using the CDN received as your source document.

BFS may send more than one CDN on the same refund claim. The first CDN is to advise the IRS they are settling with the taxpayer and another CDN with the settlement check information. If there is a previous TC 971 AC 078 on the module, associate the CDN with the previous one in the file or destroy it. Do not input more than one TC 971 AC 078 for the same refund.

If the CDN indicates the "agency will be credited" or similar wording, monitor for the posting of the credit and take appropriate action. If forgery is determined, BFS will pay the taxpayer out of the Check Forgery Insurance Fund (CFIF). See IRM 21.4.2.4.15.3, Secret Service and Check Forgery Insurance Fund (CFIF).

If the explanation says, "Settlement Denied" , "Settlement Not Authorized" , or "Settlement Not Recommended and Case is Closed" , BFS has disallowed the claim and advised the taxpayer. Input a TC 971 AC 079 and file the CDN with TC 290 as instructed in (4) above. Do not input more than one TC 971 AC 079 for the same refund.

The CDN may have an unusual response and include copies of the FS Form 1133, check copies, or other forms. If it is not clear what BFS wants, contact BFS Customer Engagement Center via phone at 855-868-0151 and ask what action they intended for the taxpayer or the IRS.

If the CDN notes that "The payee has released their claim" , close the control base with activity "TPRECCK" .

See IRM 21.4.2.4.15.3.3, Check Forgery Insurance Fund (CFIF) Impact on the Agencies, for additional information regarding CDNs related to forgery claims.

Any CDN that is informational only should be destroyed as classified waste without taking a case count. The following list of examples is not all inclusive.

If a decision is made to allow the Limited Payability (LP) claim by the TE/CSR/Reviewer, the "Account 6565" is debited and a refund is issued to the taxpayer. Prepare Form 3809, Miscellaneous Adjustment Voucher, to debit "Account 6565" and post TC 841 to the taxpayer’s account. Be sure to use the TC 840 or TC 846 date of the applicable refund. Annotate "CAT 1" in the upper left of Form 3809. See Exhibit 3.17.80-11, Form 3809 Miscellaneous Adjustment Voucher, for information on completing the form.

To determine the appropriate campus for routing the Form 3809 to Accounting, use the 8th and 9th position of the Refund Schedule Number (RSN). See Exhibit 3.17.79-4, Refund Schedule Number Format.

When forwarding to Accounting include the following:

Monitor the account for posting of the TC 841. The TC 841 DLN will carry a Document Code "48" and Block Series "89XXX" . Input TC 290 for .00 to release refund to the taxpayer. Limit interest to the amount on the original refund by including a TC 770 for .00 or the original credit interest amount along with the original CR-INT-TO-DATE of the original TC 776/770.

The following information covers miscellaneous refund trace issues. It also contains information on the Check Forgery Insurance Fund (CFIF), listings for monitoring cases, and the Bureau of the Fiscal Service (BFS) Reports.

Taxpayers can initiate a refund trace through the automated telephone application or on the internet at www.irs.gov"Where's My Refund" (IRFOF). Generally, these automated systems will only trace the first refund issued during the current processing year. These systems do not allow a taxpayer to start their own refund trace if they filed Married Filing Joint or received their refund via direct deposit. Since taxpayers who file Married Filing Joint returns cannot initiate a trace using automation, the applications will offer them a Form 3911, Taxpayer Statement Regarding Refund, to get the process started.

The caller first goes through the refund inquiry application that provides information regarding the status of their refund (including the mail date and math error information) and decides whether their refund is eligible to be traced in automation. If the caller has selected the option indicating the refund check was lost, stolen, or destroyed, or the mail date was at least 28 days prior to the date of the call, the refund inquiry application will transfer eligible callers to the refund trace application. The following chart highlights the actions taken when an inquiry is initiated through ICCE (formerly Telephone Routing Interactive System - TRIS):

The IRFOF (Where's My Refund) web site allows the taxpayer to walk through a series of on-line screens. A refund trace cannot be input on any refund check until 28 days after it was issued. If 28 days has passed and the taxpayer indicates they have not received their check, they can initiate an on-line refund trace (except Married Filing Joint taxpayers and direct deposit recipients). Taxpayers whose refund checks were returned undelivered by the U.S. Postal Service will be provided a contact number to provide a new address. CSRs will follow procedures in IRM 21.4.3.5.3, Undeliverable Refund Checks. If the taxpayer has trouble in initiating a refund trace, they will be advised to call a customer service representative for assistance.

If refund trace criteria are met, IRFOF will automatically input CC CHKCL and control the case to a predetermined Refund Inquiry Unit through IDRS. The case is controlled to an employee number beginning with 099.

Both automated system traces proceed through the normal check trace dispositions, "3911TORDCC" and "01" and will end as a Disposition 11 (cashed check) or 32 (outstanding). Treat all other disposition codes like any other case.

On joint returns, CC CHKCL is not input on either system. ICCE automatically mails a Letter 129C, Refund Inquiry; Form 3911 Required, and Form 3911 to the taxpayer. IRFOF allows the taxpayer to print the Form 3911 on-line. IRFOF provides the mailing address and fax number of the predetermined Accounts Management campus to mail the Form 3911. Married Filing Joint taxpayers must complete and jointly sign the Form 3911 and return it to the IRS before a refund trace can be initiated by the Refund Inquiry examiner.

The system was developed by the Bureau of the Fiscal Service (BFS) to enhance the check-claim process. The system provides on-line access to the status of both electronic funds transfer and check payments and access to digital images of cashed checks. TCIS provides information on Treasury checks for 7 years after the date of issue and six years for EFT deposits. At most campuses, access to the TCIS system is limited to the Refund Inquiry Units, the Taxpayer Advocate Service, and Criminal Investigation.

TCIS will allow the capability of initiating a request for a copy of a check within 7 years of issuance, or a refund claim no later than the 15th day of the 14th month from the refund date, if you have the appropriate access.

TCIS will house FS Form 150.1 information or allow you to initiate a claim on a direct deposit refund issued within 6 years.