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Part 3. Submission Processing

Chapter 0. General

Section 230. Lockbox Processing Procedures

3.0.230  Lockbox Processing Procedures

Manual Transmittal

October 25, 2011

Purpose

(1) This transmits revised IRM 3.0.230, General - Lockbox Processing Procedures.

Material Changes

(1) IRM 3.0.230.2.1 - Form 944PR, Form 944SS, Form 8109 / 8109B, Form 2159–V, & Private Collection Agency (PCA) payments are obsolete

(2) IRM 3.0.230.3(2) - Split IRM 3.10.72 into 3.10.72 Receiving, Extracting, and Sorting and 3.10.73 Batching and Numbering.

(3) IRM 3.0.230.5 (B) - Removed two bullets about the annual conference.

(4) IRM 3.0.230.5 (C) - Changed wording for the Functional Specification Package (FSP) and Lockbox Electronic Network (LEN) section.

(5) IRM 3.0.230.5 (D) - Updated organization title.

(6) IRM 3.0.230.5 (F) - Deleted the word quarterly from the first bullet.

(7) IRM 3.0.230.6 - Updated mandatory lockbox review trips.

(8) IRM 3.0.230.8.1 - Updated IRM Reference.

(9) IRM 3.0.230.8.7.1 - Removed Atlanta.

(10) IRM 3.0.230.11.2 (1) - Changed TGAnet to OTCnet IPU 110647 issued 03–24–2011.

(11) IRM 3.0.230.11.3 - Removed FTD coupon bullet from Lockbox Field Coordinator's Package contents.

(12) IRM 3.0.230.12.2.1(3) & (4) - Added instruction for both reviewers to sign IPU 110198 issued 01-24-2011 .

(13) IRM 3.0.230.12.5 - Changed TGAnet to OTCnet IPU 110647 issued 03-24-2011 .

(14) IRM 3.0.230.12.5 (6) - Changed TGAnet to OTCnet IPU 110647 issued 03-24-2011.

(15) IRM 3.0.230.12.6 (2) - Changed TGAnet to OTCnet IPU 110647 issued 03-24-2011 .

(16) IRM 3.0.230.12.13 - Combined the Prior Year & Delinquent return sort instructions.

(17) IRM 3.0.230.14 - Deleted definition for TGAnet IPU 110647 issued 03-24-2011.

(18) IRM 3.0.230.14 - Added Term/Definition for OTCnet IPU 110727 issued 04-06-2011.

(19) IRM 3.0.230.12.15.1 - Added instruction number six and eight to the Deposit Error Review.

(20) IRM 3.0.230.12.16.1(1) - Updated RTR transaction year IPU 110727 issued 04-06-2011 .

(21) IRM 3.0.230.12.16.2(2) - Added reference Exhibit 3.0.230-3 and deleted Lockbox File Location Code (FLC) chart IPU 110198 issued 01-24-2011.

(22) IRM 3.0.230.12.17.2(5) - Updated (e.g., year) and Special Instructions IPU 110727 issued 04-06-2011.

(23) IRM 3.0.230.12.17.3 - Added statement "On a daily basis, whenever an error is identified or suspected NOTIFY the Lockbox Coordinator IMMEDIATELY via their cell phone" IPU 110727 issued 04-06-2011.

(24) Exhibit 3.0.230-1 - Updated the IMF Submission Processing Campus / Lockbox State Realignment chart.

(25) Exhibit 3.0.230-3 - Updated the File Location Code Table.

(26) Exhibit 3.0.230-5 - Added Acronyms/Description for OTCnet IPU 110727 issued 04-06-2011.

Effect on Other Documents

IRM 3.0.230 dated January 1, 2010 is superseded. This IRM also incorporates the following Interim Procedural Updates (IPU) 110198, (IPU) 110647, and (IPU) 110727.

Audience

All Submission Processing Campuses (SPC), Lockbox Policy and Oversight Analysts, Financial Management Service (FMS), Government Accountability Office (GAO), and Treasury Inspector General for Tax Administration Office of Investigation (TIGTA).

Effective Date

(01-01-2012)

Jerald H. Heschel, Director, Submission Processing
Wage & Investment Division

3.0.230.1  (01-01-2009)
Introduction

  1. This Internal Revenue Manual (IRM) gives the procedures for a uniform method of documenting, reviewing, classifying, and reporting procedural changes under the jurisdiction of the Accounting and Tax Payment Branch.

  2. It provides the monitoring and evaluation methods used by all management levels in the Internal Revenue Service (IRS) in conjunction with Financial Management Service (FMS) to oversee and evaluate the Lockbox Sites.

  3. It describes how management in the Submission Processing Campuses (SPC) should handle a Lockbox processing / procedural change after being approved by Accounting and Tax Payment Branch, Headquarters.

3.0.230.2  (01-01-2009)
Purpose

  1. This IRM provides Processing Internal Controls directives and general procedures for tax payments / returns received at the SPC from the Lockbox Sites.

  2. The FMS, a bureau of the United States Department of Treasury, acquires Lockbox collection services for the IRS. The IRS Lockbox network consists of commercial Lockbox Sites designated by FMS to process federal tax payments.

  3. Lockbox Sites, regardless of their Business Master File (BMF) or Individual Master File (IMF) designation, are expected to process all payments (BMF and IMF) considered processable.

3.0.230.2.1  (01-01-2012)
Lockbox Site Processable IRS Forms

  1. All Lockbox Sites will process payments received with designated IRS forms. Specific procedures and policies are provided to the Lockbox Sites via the Lockbox Processing Guidelines (LPG). Lockbox Sites must provide the necessary services (personnel, facilities, equipment, and materials) to process the payments received with these forms and follow the instructions for returns to be forwarded to the SPC they service. The processable IRS forms are as follows:

    • Form 433–D, Direct Debit Installment Agreement

    • Form 940, Employer's Annual Federal Unemployment Tax Return / Payment Voucher, also Form 940, when the Amended box has been checked.

    • Form 940PR, Employer's Annual Federal Unemployment Tax Return, Puerto Rico*

    • Form 941, Employer's Quarterly Federal Tax Return / Payment Voucher

    • Form 941PR, Employer's Quarterly Federal Tax Return, Puerto Rico*

    • Form 941SS, Employer's Quarterly Federal Tax Return, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands*

    • Form 943, Employer's Annual Tax Return for Agricultural Employees / Payment Voucher

    • Form 943PR, Employer's Annual Tax Return for Agricultural Employees, Puerto Rico*

    • Form 944, Employer's Annual Tax Return / Payment Voucher

    • Form 945, Annual Return of Withheld Federal Income Tax / Payment Voucher

    • Form 941X, Adjusted Employer's Quarterly Federal Tax Return or claim for refund

    • Form 943X, Adjusted Employer's Annual Tax Return for Agricultural Employees or claim for refund

    • Form 944X, Adjusted Employer's Annual Tax Return or claim for refund

    • Form 945X, Adjusted Annual Return of Withheld Federal Income Tax or claim for refund

    • Forms 1040, 1040A, and 1040EZ, U.S. Individual Income Tax Return / Payment Voucher

    • Form 1040ES, Estimated Tax Payment Voucher

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return**

    • Form 1040PR, U.S. Self-employment Tax Return for Puerto Rico**

    • Form 1040SS, U.S. Self-employment Tax Return for the Virgin Islands / American Samoa, Puerto Rico / Guam / Commonwealth of the Northern Mariana Islands**

    • Form 1040X, Amended U.S. Individual Income Tax Return

    • Form 1041ES, Estimated Tax Payment Voucher***

    • Form 2290, Heavy Highway Vehicle Use Tax Return / Payment Voucher***

    • Form 4868, Application for Automatic Extension of Time to file U.S. Individual Income Tax Return / Payment Voucher

    • Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing

    • Form 8879, IRS e-file Signature Authorization

    • Form 8892, Payment of Gift / GST Tax and / or Application for Extension of Time to File Form 709

    • Form 9465, Installment Agreement Request

    • CP521 and CP523, Installment Agreement Payment Notices

    • Letters 3856, 3856A, Manually Monitored Installment Agreement (MMIA) Letter / Payment Voucher****


    *Ogden SPC only
    **Austin SPC only
    ***Cincinnati SPC only
    ****Kansas City SPC only

3.0.230.3  (01-01-2011)
Scope

  1. The provisions prescribed are limited to Processing Internal Controls directives and procedures in this IRM, the LPG and the Lockbox Security Guidelines (LSG). All SPC functional areas will use this IRM to process and handle work performed by each Lockbox Site. The LPG will be used for all Lockbox payment processing systems and the LSG will be used for all Security Requirements by each Lockbox Site.

  2. The following IRMs and Documents are resources for Lockbox Field Coordinators (LFC):

    • LPG - Lockbox Processing Guidelines

    • LSG - Lockbox Security Guidelines

    • IRM 10.2.11 - Basic Security Concepts

    • IRM 3.24.133 - Residual Remittance Processing System

    • IRM 3.0.167 - Losses and Shortages

    • IRM 3.8.44 - Campus Deposit Activity

    • IRM 3.8.45 - Manual Deposit Process

    • IRM 3.10.72 - Receiving, Extracting, and Sorting

    • IRM 3.10.73 - Batching & Numbering

    • IRM 25.8.1 - OFP Codes Overview

    • IRM 21.5 - Account Resolution

3.0.230.4  (01-01-2011)
General Instructions

  1. The IRS, FMS and Lockbox Sites have established a contract to deposit Federal tax payments expeditiously by:

    1. Processing the vouchers and payments and crediting the amount to the United States Treasury's deposit account.

    2. Electronically providing data associated with these payments to the IRS for posting to the taxpayers' accounts.

    3. Forwarding unprocessable items to the IRS SPC.

    4. Sending the "Daily Mail-Out Package" to the SPC. The Lockbox Document Transmittal will list the contents of each day's work being shipped to each assigned SPC.

  2. Taxpayers are instructed to send their IMF or BMF tax payments for various forms to post office boxes related to a Lockbox Site.

  3. States are being realigned based on the SPC Consolidation plans. The approved realignment for the 2012 filing season is shown on Exhibit 3.0.230–1.

  4. Changes and recommendations to be incorporated into the January revision of this IRM must be received at Headquarters no later than the preceding June 30 for consideration.

3.0.230.4.1  (01-01-2012)
Lockbox Financial Agencies

  1. Commercial banks are chosen through a process initiated by the IRS and directed by FMS to serve as Lockbox Financial Agencies for the IRS.

  2. Lockbox Policy and Oversight Section (LPO) provides the procedures and policies to be followed in conjunction with FMS.

  3. Lockbox Sites are required to follow the instructions for processing payments and all other instructions included in the LPG.

  4. Lockbox Sites are required to follow the instructions for Physical, Personnel, Courier and Information Technology security and all other instructions included in the LSG.

  5. Lockbox Sites are required to follow the software program specifications within the Lockbox Functional Specification Packages (FSP).

3.0.230.4.2  (01-01-2011)
Security Standards (Physical / Disclosure)

  1. The Lockbox Site will provide adequate security, equipment, and facilities to safeguard all remittances received, processed, and shipped to the SPC as follows:

    1. All Lockbox Security Requirements, Physical, Personnel, Courier, and Information Technology related, will be followed as specified in the LSG.

    2. A disclosure statement must be signed according to the conditions of employment (employees and vendors) to ensure tax data is not revealed to unauthorized persons.

    3. Deposit consisting of paper remittances must be packaged in one of the following manners:
      1. Cardboard boxes with heat strapping and placed in cloth sleeves which can be sealed with an identification number / tag.
      2. Secure in locked metal or plastic boxes with an identification number / tag.

    4. The Lockbox Site is liable for any Financial Agent (FA) Settled loss or shortage of funds received and not properly credited to the IRS. (This applies only if the loss or shortage occurs while the remittance is in the Lockbox Site's possession and when they are bank of first deposit.)

    5. All Lockbox Sites are subject to reviews to ensure all procedures outlined in the LPG and LSG are followed.

  2. Treasury Inspector General for Tax Administration Office of Investigations (TIGTA) is responsible for the investigation of any missing remittance mailed to the Lockbox. The Lockbox Site must fully cooperate with TIGTA. The Lockbox Site is responsible for assisting TIGTA in the investigation and resolution of any missing taxpayer remittance or the disclosure of any taxpayer personally identifiable information (PII) by the Lockbox.

    1. The Lockbox Site will immediately notify TIGTA, FMS Program Office, IRS Lockbox Program Office, Computer Security Incident Response Center (CSIRC), the Director and Deputy Director, Submission Processing, LFC. The LFC will contact the local Remittance Security Coordinator about the missing remittance.

    2. Upon notification, the LFC will ensure the Lockbox Site has followed all reporting procedures.

3.0.230.5  (01-01-2012)
Accounting and Tax Payment Branch, Lockbox Policy and Oversight (LPO) Section - Responsibilities

  1. Wage & Investment (W&I): Accounting and Tax Payment Branch (ATP): Lockbox Policy and Oversight Section (LPO) has the primary responsibility for management and oversight of the lockbox network and the development of system, security, internal control, processing and reporting requirements. It has responsibility for ensuring the processing, deposit, and security requirements stated in the LPG and LSG are followed by the Lockbox network. Following are specific roles and responsibilities:

    A. Financial Agent Selection Process

    • Supports FMS by providing information to be included that reflects the policy requirements of the Service

    • Participates in all planning sessions with FMS

    • Assists in preparing a timeline of activities that will meet the schedule of all parties involved

    • Provides concurrence with all documents prior to the release to Network Banks

    • Provides concurrence on any and all changes to the Financial Agent Agreement (FAA) after issuance to Network Banks

    B. Lockbox Processing Guidelines (LPG) and Lockbox Security Guidelines (LSG)

    • Updates these documents in accordance with tax legislation

    • Tracks and addresses all suggestions and comments reported during previous filing season

    • Conducts discussion sessions with FMS and IRS Subject Matter Experts as needed or requested

    • Provides drafts of the LPG and the LSG with a "Nature of Changes" page to LPO and FMS analysts for review and comment

    • Provides copies of final documents to all users in time for changes to be implemented including FMS and Lockbox Network Banks

    • Communicates changes and updates to all users in a timely manner

    • Provides a process to collect feedback on all requirements

    • Tracks, coordinates and ensures accurate and timely responses to waiver requests associated with the LPG and LSG

    • Provides technical assistance to the Lockbox Sites, campus employees, management and other parties utilizing the LPG

    • Issues Alerts and Lockbox Electronic Bulletins (LEBs) to update documents as necessary throughout the year

    C. Functional Specification Package (FSP) and Lockbox Electronic Network (LEN)

    • Works with IRS Modernization & Information Technology Services (MITS) to develop the lockbox FSP (software requirements)

    • Works with each Lockbox Site to ensure adequate understanding of the software requirements

    • Works with MITS to ensure consistency between Lockbox software specifications and IRS internal software specifications

    • Works with IRS Enterprise Systems Testing and the Lockbox Sites to ensure adequate and timely testing and certification of Lockbox Sites software

    • Ensures Lockbox Sites timely receive the FSP and new programs are implemented within required timeframes

    • Works with IRS MITS and Lockbox Sites to resolve Lockbox software production problems

    • Coordinates with MITS on end-of-year (EOY) procedures and sends out a LEB with detailed instructions for each day, including the date the new code will be implemented

    • Works with Lockbox Sites and MITS to ensure electronic network transmissions of taxpayer data from the Lockbox Sites to the Enterprise Computing Center-Martinsburg (ECC-MTB) are accurate and timely

    • Provides annual certification for each Lockbox Site's software

    • Monitors transmission of Remittance Processing System (RPS), Remittance Transaction Research (RTR) and RRACS files from the Lockbox Sites to the Enterprise Computing Center - Martinsburg (ECC-MTB) drop box

    • Coordinates with MITS when RPS and / or RTR files error out in Electronic File Transfer Utility (EFTU)

    • Coordinates with Enterprise Computing Center - Memphis (ECC-MEM) and ECC-MTB when RPS or RRACS files are not received or bad files are received requiring re-transmission

    • Issues information alerts for ECC scheduling when Lockbox sites are working and transmitting RPS files on non-business days (weekends or holidays)

    • Coordinates with Lockbox Sites in the event RPS, RTR, or Redesign Revenue Accounting Control System (RRACS) files require re-transmission

    • Coordinates with ECC-MEM and the Lockbox Sites on the submission of RTR media in the event that the RTR files are unable to be transmitted electronically for an extended length of time

    D. Filing Season Readiness (FSR) Preparation and Coordination

    • Coordinates with Multi-Media and Production Division to test pre-printed vouchers and provides ready for use authorization

    • Provides voucher specifications to software developers, ensure adequate testing of vouchers and participates in the annual software developer conference

    • Manages Post Office Boxes for each Lockbox Site with FMS

    • Works with FMS and the lockbox processing Lockbox Sites to ensure the Lockbox Network Post Office Box addresses by form type are correct

    • Ensures addresses to be posted on the Internet are correct

    • Coordinates with IRS MITS and Forms and Publications to ensure correct lockbox addresses are incorporated in the mail-out tax packages and documents

    • Works with IRS MITS to ensure timely and adequate Systems Acceptability Testing (SAT) and timely software certification of the Lockbox Sites

    • Determines workload distribution for each Lockbox Site based on each Lockbox Sites capacity and performances in concert with FMS and the IRS Submission Processing: Coordination & Project Management Branch; Project Management Section

    • Works in concert with FMS to validate all Lockbox Sites are certified for Security (Refer to Security Memorandum of Understanding (MOU) for certification details)

    E. Review of Lockbox Site - FSR

    • Calculates the Program Completion Date (PCD) for each IMF Lockbox Site based on expected volume of work and provides PCD information to each Lockbox Site

    • Provides Lockbox PCD information for each IMF Lockbox Site to the Program Management / Program Assistance Branch of Submission Processing Headquarters

    • Conducts filing season readiness meetings with Lockbox Sites and SPC's

    • Updates the Lockbox Readiness Review Plan to reflect needed changes on an annual basis

    • Distributes the Readiness Review Plan to each Lockbox Site with established time frames for completion

    • Conducts an analysis of the Readiness Plans to ensure processing requirements are addressed

    • Coordinates with each Lockbox Site any required changes, concerns, or issues for resolution prior to the start of the new calendar year

    • Conducts pre-peak and post-peak meetings with each Lockbox Site and the respective SPC

    F. Performance Measure Reviews

    • Performs on-site Procedural and Processing Internal Control (PIC) Reviews using the Data Collection Instrument (DCI) at the Lockbox Sites during peak processing periods

    • Works with FMS, and IRS Partners (Statistics of Income (SOI), MITS, and AWSS) to develop and perform Performance Measure Reviews for IT, Courier, Personnel and Physical Security

    • Updates all DCIs to accurately reflect new requirements and / or changes in the LPG and LSG

    • Develops new DCIs for on-site reviews and SPC reviews as new work is brought into the Lockbox program

    • Compiles and analyzes data from on-site and the SPC DCI reviews to monitor the quality of Lockbox processing

    • Prepares and submits the Lockbox SPC DCI to the IRS, SOI by the 15th of every month

    • Prepares and submits the Procedural and PIC DCIs to SOI by the 15th of the month following all peak and non-peak visits to Lockbox Sites

    G. Reporting

    • Updates the Daily Deposit Production / Office of the Assistant Secretary (OFAS) report as new work is brought into the Lockbox program

    • Monitors, on a daily basis, productivity and inventories using the Daily Deposit Production / OFAS Report submitted by each Lockbox Site and the Lockbox Daily Deposit Cycle Report

    • Coordinates resolution of issues identified with the Lockbox Site and FMS

    • Prepares a weekly production report during Business Master File (BMF) (January) and Individual Master File (IMF) (April) peak periods

    • Prepares, monitors, and updates the Financial Facts (Fin-Facts) report

    • Prepares, monitors, and updates on a daily basis the Minimum Daily Processing Capacity (MDPC) & PCD report during the IMF and BMF peak processing periods

    • Monitors all critical and non-critical incident reports

    • Monitors and manages all security issues to ensure adequate and timely resolution

    • In concert with FMS, IRS, AWSS and MITS prepares and monitors security review reports for Lockbox Site response to findings or issues

    • Manages all Security Plan of Action and Milestones (POAM) issues / findings and ensures appropriate reporting of the status of each issue

    H. Oversight

    • Develops specific oversight guidelines, quality improvements and control programs in conjunction with FMS

    • Reviews compliance with LSG requirements

    • Monitors the quality of each Lockbox Sites' performance and reviews compliance with LPG requirements

    • Analyzes all program review reports on all oversight visits and shares results with FMS

    • Works in concert with FMS to conduct an analysis of peak performance that includes data collected by IRS analysts and FMS

    • Works in concert with FMS to conduct post peak meetings with each Lockbox Site to review their performance quarterly

    • Supports the SOI analysts with the anomaly detection process

    • Makes recommendations on ways to improve Lockbox oversight and discusses issues of concern with FMS

    • Responds to inquiries from internal and external stakeholders as needed

    • Works with TIGTA, the SPC Remittances Security Coordinator (RSC), and FMS to ensure taxpayer's accounts receive timely reimbursement of any lockbox theft or loss

    I. Lockbox Continuity of Operations

    • Works in concert with FMS to develop and implement a Continuity of Operations plan (COOP)

    • Works with FMS, Lockbox Sites, and SPC to coordinate testing of COOP

    • Provides field support to the contingency Lockbox Site when a COOP is implemented

    • Provides 24 / 7 primary contacts to the Computer Security Incident Response Center / Situation Awareness and Management Center (CSIRC / SAMC) process

    • Updates CSIRC / SAMC when contacts change. See Security MOU for details on the CSIRC / SAMC process

3.0.230.6  (01-01-2012)
Mandatory Lockbox Review Trips

  1. Following is a chart designating Mandatory Review trips by LFC Analysts. It lists the peak dates and type of payment with form number to be processed by the Lockbox Sites.

    MANDATORY TRIPS - IMF COORDINATORS
    APRIL PEAK April 15th - 1040, 1040ES, 4868 processing
    UNANNOUNCED Review - dates to be determined by LFC & LPO.
     
    MANDATORY TRIPS - BMF COORDINATORS
    JANUARY PEAK January 31st - 94X processing
    UNANNOUNCED Review - dates to be determined by LFC & LPO.
     

3.0.230.6.1  (01-01-2009)
Declaring IMF Program Completion Date (PCD), BMF Peak Completion (PC) and Peak Sweep

  1. IMF Lockbox Sites receive a PCD from IRS in which to complete receipts received during IMF April peak.

  2. BMF Lockbox Sites are required to be on a 24-hour deposit schedule (January peak only) before Peak Completion (PC) is declared.

  3. IRS in conjunction with FMS (if available) must complete a sweep of the facility before PCD / PC is declared. Refer to LPG for specifics.

  4. The LFC will declare when PCD / PC has been met after the sweep. If no LFC is present, an on-site IRS representative will declare when PCD / PC has been met.

3.0.230.7  (01-01-2011)
Bogus or Questionable Remittances

  1. Lockbox Sites may receive bogus remittances that resemble checks and money orders. They follow the procedures outlined in the LPG.

  2. When TIGTA decides not to pursue the case, the bogus remittances are sent to the LFC.

  3. The LFC then coordinates with the Receipt and Control Operations to return the suspicious remittance to the taxpayer.

3.0.230.8  (01-01-2009)
Areas of Impact

  1. Submission Processing Functional areas impacted by Lockbox Sites are Receipt and Control, Error Resolution, Unpostables, Accounting, Submission Processing Improvement Team, and Notice Review. MITS, Accounts Management, and Field Compliance may also be impacted by Lockbox processing.

3.0.230.8.1  (01-01-2012)
Accounts Management Operations

  1. Customer Service Representatives must alert management of unusual taxpayer complaints regarding Lockbox processing.

  2. Report any potential theft / embezzlement to the TIGTA Office of Investigations and the RSC found on the Submission Processing Website under Campus Security.

  3. Follow all procedures outlined in IRM 21.5.7.4.6.8, Altered and / or Stolen Taxpayer Payments.

3.0.230.8.1.1  (01-01-2009)
Encoding Errors

  1. Accounting Operations corrects Lockbox encoding errors and reports the errors each month to the LFC. Refer to IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF).

  2. The LFC provides SOI a consolidated monthly report of Lockbox encoding errors and Lockbox reviews performed by the SPC.

3.0.230.8.1.2  (01-01-2011)
Payment Tracers

  1. A payment tracer case is generated when a taxpayer inquires about a payment which has not been credited to his account. The taxpayer usually has received an erroneous notice.

  2. Accounts Management and Field Compliance are responsible for the preliminary processing of payment tracer requests. Instructions for processing these requests are contained in IRM 21.5.7, Payment Tracers.

  3. If preliminary research does not result in locating the payment, the case will be forwarded to the Hard Core Payment Tracer Unit.

  4. Depositaries are given 21 calendar days to respond to SPC inquiries concerning deposit issues. If a timely response is not received, notify the LFC.

3.0.230.8.1.3  (01-01-2009)
Balancing and Control Function

  1. The Balancing Unit will receive a copy of the journal package prepared by the Revenue Accounting Control System (RACS) Unit.

  2. The deposit amount from the Lockbox Deposit Ticket is added to the deposit amount from the regular RPS Deposit Recap RPS 03-42.

    • This amount should agree with the totals on Service Center Control File (SCCF) 11-43, RPS IMF Control Date Recap / Master Control Records

  3. Contact the LFC if there is a discrepancy between the totals attributable to Lockbox.

3.0.230.8.2  (01-01-2009)
Correspondence (General)

  1. Written correspondence received at the Lockbox from taxpayers, or representatives is forwarded daily to Receipt and Control. Receipt and Control follows their IRM to deliver this work to be processed through the normal pipeline. Refer to IRM 21.3.3, Incoming and Outgoing Correspondence / Letters, for additional information.

3.0.230.8.3  (01-01-2011)
Remittance Transaction Research (RTR) System

  1. The RTR system is a researchable database containing remittance processing data and images from Lockbox Sites, Integrated Submission Remittance Processing (ISRP), and Remittance Strategy for Paper Check Conversion (RS-PCC). All Operations in Submission Processing and Accounts Management should refer to IRM 3.5.10, Remittance Transaction Research (RTR) System, for specific instructions on using this system.

3.0.230.8.4  (01-01-2009)
Error Resolution System (ERS)

  1. Images of processed documents will be available for research on the RTR system. Documents are identifiable as scannable and non-scannable by the file location codes.

  2. Transactions that fail the generalized mainframe (GMF) math error, consistency and validity checks are generated for correction to ERS.

  3. Instructions for resolving these errors are contained in Error Resolution IRM 3.12.10, Revenue Receipts.

  4. Notify the LFC if there is a significant increase in ERS volume relating to Lockbox processing.

3.0.230.8.5  (01-01-2009)
Unpostables

  1. Lockbox transactions are processed and matched against IMF and BMF data on the Master File.

  2. Transactions that fail to match master file validity and consistency checks will generate a list to the Unpostable Unit for corrective action.

  3. Instructions to correct unpostable conditions are in IRM 3.12.179, IMF Unpostable Resolutions, IRM 3.12.279, BMF Unpostable Resolution, IRM 3.13.122, IMF Entity Control Unpostable Correction Procedures, and IRM 3.13.222, BMF Entity Control Unpostable Correction Procedures.

  4. Unusually large volumes of errors in certain unpostable category codes may indicate a need for additional training and / or revisions to LPG and / or IRMs. The Unpostable Unit must notify the LFC when volumes are above average.

3.0.230.8.6  (01-01-2009)
Notice Review

  1. The Notice Review process ensures the information received from taxpayers is complete and correct, and no taxpayers receive an erroneous refund.

  2. The Notice Review function will receive IMF, BMF, and IDRS Computer Paragraph (CP) Notices. These notices may be selected for review by Notice Review Processing System or IDRS Review Notice Register.

  3. Notices are generated to taxpayers when adjustments have been made to their account(s).

  4. Instructions for researching Lockbox payments is included in IRM 3.14.1, IMF Notice Review and IRM 3.14.2, BMF Notice Review.

  5. Unusually large volumes of errors resulting in notices may indicate a need for additional training and / or revisions to Lockbox Processing Guidelines. Notify the LFC when the volumes are above average.

  6. The file location code in the DLN of the audit trail will be the indicator of Lockbox processing. See Exhibit 3.0.230-2.

3.0.230.8.7  (01-01-2010)
Modernization & Information Technology Service (MITS)

  1. This section contains instruction for LEN RPS File Transmission.

3.0.230.8.7.1  (01-01-2011)
Lockbox Electronic Network (LEN) RPS File Transmission

  1. Lockbox RPS0103, RPS0505, RPS0523, and RPS9701 files will be transmitted daily via the LEN.

  2. These files will be received at a ECC-MTB drop box where they will be picked up at the top of every hour and sent to either ECC-MTB (Austin and Ogden) or ECC-MEM (Cincinnati, Fresno, Kansas City).

  3. If an erroneous file is received or an expected file is not received, notify the SPC Lockbox coordinator (see Servicewide Electronic Research Portal (SERP) http://serp.enterprise.irs.gov/ Who / Where tab - Lockbox information) who will in turn notify the LEN coordinator. The LEN coordinator will open an Information Technology Asset Management System (ITAMS) ticket and coordinate any necessary re-transmissions.

  4. Each center may establish print requirements for any of the RPS files.

  5. In the event the LEN will be unavailable for an extended period of time and the Lockbox Site cannot transmit its RPS files electronically, the LEN coordinator will open an ITAMS ticket and coordinate any necessary re-transmissions.

3.0.230.8.8  (01-01-2010)
Quality Review / Improvement Team

  1. The Improvement Team assist the LFC in ensuring the Quality Standards listed in the LPG are maintained. The assistance is to be provided through in-house program, process, Lockbox Service Center, and Deposit Error Rate (DER) reviews. When errors are identified the Improvement Team will take the necessary corrective actions to the taxpayers accounts.

  2. Instructions on the use of DCI and the Review Process are included in IRM 3.0.230.12, Submission Processing Campus Quality Review of Lockbox. Contact the LFC if you have any questions regarding the reviews and use of DCIs.

  3. The Improvement Team ensures the work being processed by the Lockbox Sites is within IRS standards. The reviewers will examine critical processing elements which could cause a work stoppage, and make recommendations for improvement if processing guidelines are not accurate. Refer to IRM 3.0.230.12 and IRM 3.0.275, Business Results Measures for Submission Processing Functions.

3.0.230.9  (01-01-2010)
Reporting Requirements

  1. Lockbox Sites are required to report total dollars and items deposited via the Daily Deposit Production / OFAS report to Headquarters.

    Note:

    The word daily means any day Lockbox Sites are working including Saturday, Sunday and Holidays.

  2. Deposits made on Monday, Tuesday, Wednesday and Thursday must be reported to Headquarters by the following day. For example, Tuesday's deposit will be reported Wednesday morning; Wednesday's deposit reported Thursday morning, etc.

    Note:

    Remittances for Friday, Saturday, Sunday and Holidays must be deposited the next business day.

3.0.230.9.1  (01-01-2009)
Daily Deposit Cycle Report

  1. IRS management uses the Daily Deposit Cycle Report (DDCR) to monitor the deposit activities and cash management practices.

  2. The DDCR is also used to monitor the Lockbox deposits made on a daily basis to ensure Lockbox policies and processing guidelines are being followed.

3.0.230.10  (01-01-2009)
Embezzlement / Theft

  1. The Submission Processing Directors will NOT be held accountable for any theft / loss that occurs at the Lockbox Site. (Credit cannot be issued from Accounts 7610, 7620, or 7650.) The LPG states that the Lockbox is liable for funds received and not properly credited to the IRS.

  2. When an IRS employee or manager identifies or suspects a revenue receipt shortage, they should immediately contact TIGTA and follow the instructions in IRM 3.0.167, Losses and Shortages.

  3. The Lockbox Site is required to ensure adequate controls exist to minimize or prevent instances of theft or loss due to embezzlement or employee negligence.

  4. The Lockbox Site will immediately notify, TIGTA, FMS Program Office, IRS Lockbox Program Office, CSIRC, the Director and Deputy Director, Submission Processing, LFC, local Remittance Security Coordinator within one hour of the discovery of a missing remittance or taxpayer PII.

  5. Lockbox Site management will obtain a statement from the employee who discovers the theft / loss. The report will contain the following:

    1. Date the loss / shortage occurred or discovered.

    2. The amount of the loss / shortage.

    3. The type of tax or fund in which loss / shortage occurred.

    4. The circumstances involved with the loss / shortage.

    5. The involved employee's signature, position, title, and the date the statement is prepared.

3.0.230.10.1  (01-01-2009)
Remittance Security Coordinator (RSC)

  1. Each SPC has selected a member of the Planning and Analysis Staff as the RSC.

  2. If the LFC is notified that a Lockbox theft has occurred, then the coordinator must notify the RSC. The RSC is the individual responsible for Centralized control, coordination and protection of taxpayers for potential embezzlement / theft cases. Refer to IRM 3.0.167, Losses and Shortages.

  3. The RSC will coordinate the theft / shortages with TIGTA, Submission Processing Director, Headquarters Losses and Shortages Analyst, Receipt Loss Coordinator, LFC, and Hard-core Payment Tracer Unit.

    Note:

    Report any potential embezzlement / theft(s) to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1–800–366–4484 (TIGTA Hotline Information) and the local Remittance Security Coordinator listed on the Submission Processing Website under Campus Security.

  4. SPC and Field Offices are to report any potential embezzlements / thefts immediately to the RSC so the RSC can ensure taxpayers are protected from adverse action while the case is investigated.

  5. Advise the respective SPC LFC when the potential loss may involve a Lockbox Site.

3.0.230.10.2  (01-01-2011)
Lockbox Tax Remittance Losses

  1. Any remittance stolen, altered or embezzled during the Lockbox tax payment process may occur under the following conditions:

    • Endorsed and made payable to someone other than the IRS

    • Embezzlement, misappropriation or other criminal acts

    • Lockbox employee negligence

    • Deposit discrepancies (encoding errors)

    • Deposit loss in transit

    • Theft (remittance stolen to obtain taxpayer identity and / or cash)

  2. LFCs will receive available information and documentation regarding the theft / shortage of tax collection from TIGTA and / or the RSC.

  3. The LFC will then report the theft / shortages of any tax collection received at the Lockbox System for IRS if reimbursement from the Lockbox Site is being requested. Use the Lockbox Theft Report. See Exhibit 3.0.230-4.

  4. Fax a copy of this report and required documentation (copy of altered check and information verifying perpetrator was connected to the Lockbox Site, if known) to the LPO Analyst.

  5. Coordinate resolution of the Lockbox cases with LPO analyst on a case-by-case basis.

  6. When notified, the LPO analyst is required to:

    1. Notify FMS.

    2. Verify TIGTA has been informed.

    3. Prepare a request-for-reimbursement letter to include taxpayer's name, TIN, dollar amount, taxpayer's SPC location, telephone number, a copy of the front and back of the check and a copy of the TIGTA preliminary report to FMS within 30 days.

    4. Set up a control file and prepare a quarterly theft report for submission to FMS.

  7. If, after one year no evidence is discovered which implicates an employee of the Lockbox Site in the theft, embezzlement, or subsequent negotiation, the LFC will:

    1. Request a manual refund for the Lockbox Site on Form 3753, Manual Refund Posting Voucher.

    2. Send Form 3753 to Accounting Operations for approval and processing. See IRM 21.4.4, Manual Refunds (Manual Refunds Initiators) and IRM 3.17.79, Accounting Refund Transactions (Primary for Processing), for additional information on the issuance of the manual refund.

  8. If the Lockbox Site has been reimbursed as described above, and it is subsequently determined that the Lockbox Site was responsible for the misappropriation:

    1. Lockbox Policy & Oversight Staff will notify FMS to request repayment from the Lockbox.

    2. Repayment will be made to the General Fund, General Miscellaneous Receipts, Account 2320 with a SF–215 (Deposit Credit Voucher) annotated "FOR DEPOSIT TO GENERAL MISCELLANEOUS RECEIPTS, ACCOUNT 20-3220 LOCKBOX REIMBURSEMENT" in the Agency Use comments section.

3.0.230.10.3  (01-01-2010)
Lockbox Reimbursement Policy

  1. IRS will initiate a reimbursement process when there is a significant impact to taxpayers or the government resulting from:

    • Internal control deficiency

    • Processing error(s)

  2. The SPC will notify the LFC of the incident.

  3. The LFC will notify LPO Section and provide information of its potential impact.

  4. The LPO will approve recovery / rework program code 85380 for SPC use.

  5. The LFC will monitor the use of program code 85380.

  6. The LFC will advise the Lockbox Site of the situation and request an Incident Report be prepared to document the situation. In addition, the Lockbox Site will research the cause of the problem and develop a method to avoid the situation in the future.

  7. The LFC will submit a quarterly report to the LPO section outlining program code 85380 volume and hours.

  8. LPO and FMS will determine disposition of reimbursement. If the recommendation is reimbursement, FMS will initiate recovery of funds from the Lockbox Site.

3.0.230.11  (01-01-2010)
Lockbox Daily Mail-Out Package

  1. The Lockbox Site will forward daily, via courier, all work processed during the current day's activity. Lockbox Document Transmittal will list the contents of the mail-out package, and will be addressed to specific functional areas. The document contents will include:

    1. All unprocessed with remittance and non-remittance work. (Remittances must be packaged separately.)

    2. All returns sorted and volume processed by sort type.

    3. LFC Package (if shown on Lockbox Document Transmittal (LDT).

    4. Address change cards or Forms 8822 (Postal Service Change of Address) and photocopies of CP 521 and 523 vouchers with address changes.

    5. Accounting package (if shown on LDT).

  2. After one year, destroy LDT, Forms 3210, Document Transmittal and 3220, Mass Media Storage Transmittal.

3.0.230.11.1  (01-01-2010)
Receipt and Control Operations

  1. Receipt and Control Operations is the central point for receipt of the mail-out package from the Lockbox. An employee from Receipt and Control or other designated personnel is responsible for ensuring the mail is received and all Lockbox work is distributed to the SPC functional areas.

  2. Mail received will be opened daily. A 100 percent review of the mail-out package is performed daily upon receipt by an employee in Shipping and Receiving or Receipt and Control Operations.

  3. The mail-out package must be received no later than noon daily in shipping containers. Contact the LFC if any items are missing from the containers or if the shipment is received after 12 p.m.

  4. The LPG specifies packaging / distribution / reporting instructions. Contact the LFC for specific instructions if necessary.

  5. Maintain the daily LDT in a file for the LFCs to review.

  6. Receipt and Control Operations will distribute the Accounting package to the proper area after the deposit has been verified.

3.0.230.11.1.1  (01-01-2010)
Unidentified Large Checks

  1. Submission Processing Campus (SPC) will provide additional research on unprocessable checks of $5,000 or greater for the Lockbox Sites.

    Exception:

    IMF Sites large dollar amount will be $1,000 or greater for the months of:

    • February

    • March

    • May

    • July

    • August

    • October

    • November

    • December

    Note:

    The Lockbox Site and / or Submission Processing Center must comply with the $1,000 tolerance whenever possible. However, if staffing and / or volumes impede the process, the Lockbox Site and / or Submission Processing Center can revert back to the $5,000 tolerance when necessary. The Lockbox Site and / or Submission Processing Center must notify their LFC when a change occurs.

    Exception:

    BMF Sites large dollar amount will be $1,000 or greater for the months of:

    • January 1 - January 14

    • February 15 - April 14

    • May 6 - June 14

    • June 24 - July 24

    • August 6 - August 31

    • September 24 - October 24

    • November 6 - December 31

    Note:

    The Lockbox Site and / or Submission Processing Center must comply with the $1,000 tolerance whenever possible. However, if staffing and or volumes impede the process, the Lockbox Site and / or Submission Processing Center can revert back to the $5,000 tolerance when necessary. The Lockbox Site and / or Submission Processing Center must notify their LFC when a change occurs.

    1. Lockbox Sites will fax their requests for research to the contacts agreed upon by the SPC and LFC.

    2. Within four hours of receipt of the request, the SPC will research IDRS for the missing information and provide a response to the Lockbox Site.

    3. If the missing information cannot be supplied to the Site, the Lockbox Site will forward the remittance to the SPC along with the fax as instructed in the LPG.

3.0.230.11.2  (01-01-2012)
Accounting Operations

  1. The Accounting package must contain the following items (specific packages will vary from Site to Site):

    • Lockbox Document Transmittal listing all contents of the Accounting package*

    • Lockbox Block Detail Listing*

    • Lockbox Block Totals Report*

    • Print of OTCnet Deposit Ticket*

    • Requested photocopies of checks (image or microfilm)*

    • FA Settled OTCnet Deposit Ticket or SF-215A, Paper Deposit Ticket*

    • FA Settled OTCnet Adjustment Deposit Ticket and / or SF-215, Paper Credit Voucher (if enclosed)*

    • FA Settled OTCnet Debit Voucher and/or SF-5515, Paper Debit Voucher or Debit Advice with returned checks (if enclosed)*

    *If requested by the LFC.

  2. A 100 percent review of the items contained in the above package, is performed daily by an employee in the RACs area of accounting. Report any missing items to the LFC.

3.0.230.11.2.1  (01-01-2009)
Photocopy Requests

  1. If the payment cannot be located on RTR, IRS Campus and Field employees request photocopies of checks processed by Lockbox Sites to help taxpayers.

  2. The Accounting function in each campus will receive and process Form 9533 Lockbox Information Requests. Accounting will fax the requests to their respective Lockbox Site for a copy of the check.

  3. The Lockbox Site has ten business days from the day the photocopy request is received to respond.

  4. Inform the LFC when the Lockbox Sites are not meeting time frames.

3.0.230.11.3  (01-01-2012)
Lockbox Field Coordinator's Package

  1. The LFC package shall contain the following:

    • Daily Deposit Production / OFAS report*

    • Monthly review reports

    • Lockbox Daily Deposit Cycle Report*

    * If requested by the LFC.

  2. All reports are available on Control-D Website after the reports have been run daily by the computing centers.

3.0.230.12  (01-01-2009)
Submission Processing Campus Quality Review of Lockbox

  1. Reviews were established to ensure IRS Lockbox Sites' work meets the standards in the LPG. Each review examines a critical element that could cause a work stoppage if processing is not accurate. It is imperative the reviews are completed daily. They will be used to assess the overall performance of each Lockbox Site.

    Note:

    SPCs with multiple Lockbox Sites are required to perform daily reviews of work received from each Lockbox Site.

  2. Each review is associated with a DCI created in Microsoft Excel. Collective data from all reviews will be combined with the PIC and procedural DCIs to produce a monthly report. General and specific guidelines for the review process and use of DCIs can be found in the sections below.

3.0.230.12.1  (01-01-2010)
General Guidelines

  1. The DCIs reflect the work to be sampled, sample size, error descriptions, and other review information. Read both the instruction and the DCI carefully before beginning.

  2. Document all pertinent comments relating to charged errors in the "Other" columns. Write them in the comments area on the DCI or on the main comment sheet.

    Note:

    Ensure corrective action is taken on the taxpayer's account when an error is identified during the Service Center Review.

  3. Forward completed DCIs to the LFC no later than the third working day of the following month. The LFC will maintain these reports for the length of the contract. The contract period is for five years with up to two one year extensions.

3.0.230.12.2  (01-01-2012)
Mail-out Package Review

  1. A 100 percent review of the mail-out package must be performed daily upon receipt of the package by an employee in Shipping and Receiving or Receipt and Control. The mail-out package must contain the following items:

    • All unprocessed work is sorted into two categories: Unprocessables with remittances and Unprocessables with no remittances.

    • DER Package

    • All returns sorted and the number of volume processed by sort type.

    • LFC package (if shown on LDT).

    • Form 4868 Review Package ( if shown on LDT)

    • Accounting package (if shown on LDT).

    • All address change cards, Forms 8822 (Postal Service Change of Address), photocopies of CP 521 and 523 vouchers with address changes.

      Note:

      The Lockbox site should not be penalized if acts of nature delay delivery of the package. If this happens, mark the package as timely received. Notate in the comments column "An act of nature delayed delivery" .

    • In the column entitled "Package contents " answer "complete" if all of the required items were included in the package, answer "incomplete" if any of the required items were missing.

    • In the column entitled "Received timely" , answer "Yes" if the mail-out package was received on time and answer "No" if it was not.

    • In the column entitled "Lockbox Document Transmittal correct " , answer "Yes" if the LDT was correct and answer "No" if it was not.

  2. Forward the DCI to the LFC no later than third working day of the following month.

3.0.230.12.2.1  (01-24-2011)
SPC Receipt & Control / Cashiers Receiving Area LDT Instructions

  1. Verify LDT Date

  2. PACKAGES – Verify receipt of the following:

    1. Lockbox Field Coordinator (LFC) package, if listed verify the package or number of packages listed is received.

    2. Accounting package, if listed verify that the Accounting package is received.

    3. DER Review package, if listed verify that the DER package is received.

    4. 4868 Review Package, if listed verify that the 4868 Review package is received.

  3. WITH-REMIT UNPROCESSABLE / REJECTS – these should be boxed separately and are to be counted and verified, as follows:

    Note:

    Verification of the CONTENTS in the With-Remit Unprocessable / Rejects is performed in a secure/restricted area

    • Count the number of coin remittances in package (e.g., 1-envelope has 3 cents and 1-envelope has 5 cents, the count is 2 coin remittances)

    • Count the number of stamp remittances in package (e.g., 1 envelope has 1-stamp and 1 envelope has 3 stamps, the count is 2 stamp remittances)

    • Verify each count and initial Received column if correct

    • If the count is incorrect proceed as follows: have another person count the items (at least 1 person counting should be a manager or work leader if possible), if both persons come up with the same count then draw a single line through the count and write the corrected amount, and have both the 1st and 2nd reviewer initial in the Received column. Call the SPC Lockbox Field Coordinator (LFC) immediately (if LFC is not available leave a voice message) Sign and date Page 1 of the Lockbox Document Transmittal and FAX to the bank as an official acknowledgement (note: if Page 1 is verified by different departments (e.g. Deposit/Cashiers and Batching) it may be necessary to fax each departments verified document (coordinate this with your LFC)

  4. Verify Non-Remit Unprocessable / Rejects as follows:

    1. Run an adding machine lister tape that adds the volumes listed on each batch header / cover sheet for each category. Compare your totals with the volume totals listed on the Lockbox Document Transmittal for each category / subcategory etc. If your quantity/volume agrees with what is listed on the LDT initial in the Received column; if your count does not agree follow the instructions in (b) below.

    2. If the quantity/volume listed on the LDT is incorrect: have another person add the items (at least 1 person counting should be a manager or work leader if possible), if both persons come up with the same count then draw a single line through the count and write the corrected amount and have both the 1st and 2nd reviewer initial the Received column. Call the SPC Lockbox Field Coordinator (LFC) immediately (if not available leave a voice message).

  5. BMF & IMF Return Sorts

    1. Verify that you have received the returns listed on the Lockbox Document Transmittal. Ensure that ALL Boxes listed have been received. Note: It is not necessary to count each return for the purpose of verifying the ‘exact’ count.

    2. If a return type or box is missing notify your Lockbox Field Coordinator (or backup) immediately.

  6. Miscellaneous field, if items are listed verify the description details, count, and verify the volume listed.

  7. Received Column: Verify that you have received the items listed on Page 1. Initial in the Received column if received as listed or ‘notate discrepancy’ if in error and initial.

  8. Verify that the number of boxes received agrees with the Total BOX Count on Page 1, initial if correct or notate discrepancy and CONTACT the Lockbox Field Coordinator IMMEDIATELY!

  9. Sign and Date the Lockbox Document Transmittal field for SPC at the bottom of Page 1.

  10. Fax (by 1:00 p.m. SPC time if possible) a verified copy of Page 1 as follows:

    1. BANK Site: _____________ ATTN: ______________ FAX _______________________

    2. Lockbox Field Coor: ________________ FAX _________________________________

  11. If any discrepancies are found on the Lockbox Document Transmittal notify your Lockbox Field Coordinator IMMEDIATELY via voice mail. Notate any LDT discrepancy errors on the R&C Mail Out Package DCI and provide details in the DCI comment field. Banks are measured and scored based on Mail Out Package accuracy.

  12. SPC receiving area(s) is to keep copies of all Lockbox Document Transmittals for a 1-year period. These documents are to be maintained in chronological order and available for review upon request

3.0.230.12.3  (01-01-2010)
Monthly Reports Review

  1. Each month the Lockbox Site is required to send the monthly reports to the LFC by the 5th business day of the following month. The reports are as follows:

    • Form 9535, Record of Lockbox Discovered Remittance and Correspondence- Cash Log

    • Form 9535, Record of Lockbox Discovered Remittance and Correspondence - Candling Log

    • Managerial Reviews:

    1. Candling

    2. Shreds

    3. Desk Checks / Work Areas

    Note:

    Some Lockbox Sites combine the reports listed above, i.e., the Candling and Candling Review Log may be combined on one report.

  2. The LFC will record the receipt of these reports, as well as the timeliness of each. The LFC will review the logs for completeness, i.e., do the log entries indicate all reviews were performed and recorded per the LPG requirements? Yes or No If "NO" is answered, please provide specific details in the "comments" section outlining any errors.

    Note:

    In peak months, LFC should review these items using the PIC as instructed. The Service Center review will be altered to only review what was not reviewed on the PIC review. This alternative way to review will ensure that the items are not double reviewed and that errors will not be counted twice. For IMF sites, if you have already reviewed all of the April logs, leave this DCI blank.

3.0.230.12.4  (01-01-2011)
Daily Deposit Reports Review

  1. Lockbox Sites are required to validate and reconcile reports which show the volume of items processed and dollars deposited daily to IRS, FMS, and OFAS.

  2. The reports are as follows:

    • RTR Report(s)

    • OCR Lockbox Daily Deposit Cycle Report

    • Daily Deposit Production / OFAS Report

  3. A 100 percent review of the RTR report data, OCR Lockbox Daily Deposit Cycle Report, Daily Deposit Production / OFAS report to ensure all reports balance to each other, reporting the same volume and amount deposited. Additionally, RTR and the OCR Lockbox Daily Deposit Cycle Report volumes and amounts should balance for each received date reflected on the report. The review will be performed by the LFC.

  4. Each column requires a "Yes" or "No" will be recorded in the appropriate column when a report does not balance with the other reports. There should be an entry for each day files are made and reports prepared. In the event more than one report does not balance, research will need to be performed to determine which report(s) are correct.

  5. The Daily Deposit Production / OFAS Report will be received daily via-E-mail from the bank. RTR data can be accessed in the RTR system reports function. The OCR Daily Cycle Reports can be found on the RPS9720 run and can be accessed on Control-D.

3.0.230.12.5  (03-24-2011)
Accounting Package for RACS Unit

  1. A 100 percent review of the items contained in this portion of the Accounting package must be performed daily by an employee in the RACS area of Accounting. The Accounting package for RACS must contain the following items:

    • Lockbox Document Transmittal listing all contents of the accounting package

    • FA settled OTCnet deposit ticket or SF 215A paper deposit ticket (if enclosed)

    • FA settled OTCnet adjustment deposit ticket and / or SF 215, paper credit voucher (if enclosed)

    • FA settled OTCnet debit voucher and / or SF 5515 paper debit voucher or debit advice with returned checks (if enclosed)

    • Electronic Check Presentment (ECP) Lockbox Site corrections (if enclosed)

  2. In the column entitled "Package contents" answer "Complete" if all of the required items were included in the package, answer "incomplete" if any of the required items were missing

  3. In the column entitled "Received timely" , answer "Yes" if the accounting package was received on time and answer "No" if it was not.

    Note:

    If the Accounting package comes in the Lockbox mail-out package and the entire mail-out package is received late, mark the Accounting package as received timely. The Lockbox Site should NOT be penalized again for the package being late. If this happens, note the Accounting package was received in a late mail-out package in the comments column.

  4. In the column entitled "Lockbox Document Transmittal correct " , answer "Yes" if the LDT was correct and answer "No" if it was not.

  5. In the column entitled "Deposit Ticket correct" , answer "Yes" if the deposit ticket was correct and answer "No" if it was not.

    Note:

    If the deposit ticket requires a reclass because the tax classes don't balance to the RPS0322, answer "No" . For any "incomplete" or "no" provide an explanation in the comments column.

  6. Forward the DCI to the LFC no later than the third working day of the following month.

    Note:

    The coordinator must enter the total number of deposit tickets into DCI in order for the OTCnet summary page to work properly.

3.0.230.12.6  (03-24-2011)
Dishonored Check Review

  1. A 100 percent review of the dishonored check debit vouchers contained in this portion of the Accounting package must be preformed on a daily basis by an employee in the Hard-Core Payment Tracer / Dishonored Check Team in Accounting.

  2. In the appropriate columns, record the total number of debit vouchers received, as well as the number of each that were received in error. An error would occur if the total dollar amount associated with a voucher (total of checks added together) does not match the total dollar amount of the voucher, whether it's paper or OTCnet (Form 5515). Only one error can be assessed per voucher.

  3. Forward the DCI to the LFC no later than the third working day of the following month.

3.0.230.12.7  (01-01-2011)
Debit / Credit Voucher Review (DCVR)

  1. A 100 percent review of all debit and credit received from the Lockbox Site, other than encoding error and dishonored checks, which must be done daily by an employee in the hard-core payment tracer / dishonored checks unit of Accounting.

  2. In the appropriate columns, record the voucher number, voucher date, amount, and voucher type of each voucher received.

  3. Place the number of items in error in the appropriate error code column(s). Only one error per voucher will be recorded unless selecting the "Multiple Adjustments on one Voucher" error code. If error type is "Other" , provide an explanation in the comments column.

    Note:

    DCVR errors over a year old should NOT be captured on the DCI.


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