The Service is committed to ensuring a 24 hour deposit standard. As we move toward attaining that goal through improved technology, it is of the utmost importance to deposit the largest amount of money in the shortest possible time frame in order to maintain good cash management practices. Management at all levels must monitor the flow of receipts to ensure that this objective is achieved.

The Receipt and Control Operation is responsible for the receipt, safeguard, accuracy, and timely deposit of all monies received in payment to the Government through Internal Revenue Service. Maintaining the integrity of the IRS received date is required. Credit all payments for the earliest date received by IRS or Department of Treasury.

All remittances of $100,000.00 or more must be deposited on the day of extraction. If the remittance is extracted after the daily cut-off time for processing the daily deposit, the remittance must be deposited with the next scheduled deposit that will be delivered to the depository.

All remittances of $50,000.00 and up to $99,999.99 must be deposited by the next business day (excluding Saturdays and Sundays). During peak periods identified in (5) below, all attempts must be made to deposit these items the same day of extraction or no later than the next business day.

The extended cycle for the April peak completion date, for depositing receipts, is determined by the Wage and Investment Operating Division and sent to the Campuses thru memorandum.

During the following mini-peaks or when the remit receipts in the Deposit Function exceeds the deposit capacity, the deposit cycle may be extended two business days. However, the extended cycles must not exceed 5 business days. See IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates.

The deposit cycle may be extended to a maximum of three business days during the January, April, July and October 31 periods when business returns are received.

Schedule two deposit pickups during peak. Daily scheduled receipts must be based on prior year actual receipts.

In the event there will not be a deposit or if the dollar amount of the deposit will be significantly affected due to an unplanned situation or event, the Operations Manager for Receipt and Control or designee must immediately inform the Headquarters Deposit Analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as soon as it becomes evident there will not be a deposit for the day. When deposit operations resume, inform the Deposit Analyst of the item count and dollar amount of the next deposit. You must also include if you are back on your 24 hour deposit cycle and, if not, when you expect to be timely. Headquarters contacts are listed on the Submission Processing website. If unable to contact the designated Headquarters Submission Processing analyst, please call the Financial Management Service (FMS): ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ first or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Receipt and Control deposit managers are responsible for ensuring the deposits are released as a quality balanced product.

Deposit managers must perform regular reviews of completed work accumulated in final deposit area.

The review will be conducted on 5% of the remittances during non-peak periods.

After Pass 2 on the transport, fan the lower right corner of the block of remittances verifying Magnetic-Ink Character Recognition (MICR) encoded amount agrees with written amount of remittances. Review remittances for breaks in MICR encoded digits and for improper encoding, for example, encoded upside down. Also review the first and last check to ensure the audit trail is complete and legible.

Deposit managers or appointed representatives, must conduct a 100% review of deposits prior to release on a given day of each week. This must be continued until deposits are 100% accurate on a regular basis and controllable deposit discrepancies are below 100 cumulative items.

Prepare an action plan for conducting the reviews.

Schedule a meeting with Accounting Operations when necessary to review discrepancies occurring from the 100% Product Review dates. All discrepancies must be recorded and follow-up action annotated accordingly.

Deposit managers must communicate all security standards contained in IRM 10.2.11.9, Basic Security Concepts, Remittance Processing Areas and IRM 10.2.14.7.4, Methods of Providing Protection, Control and Safeguarding of Keys and Cipher Lock Combinations, to their employees at least once a year. All employees and managers of the Internal Revenue Service and Treasury are accountable for remittances under their control, including security.

Deposit managers must ensure adherence to all security standards and internal controls in IRMs: IRM 10.2.15, Minimum Protection Standards; IRM 10.2.11, Basic Security Concepts; IRM 10.2.3, Safeguard Reviews; IRM 10.2.14, Methods of Providing Protection and IRM 10.2.13, Information Protection; and this manual. Interim guidance and procedures regarding physical or remittance security must be implemented immediately. Interim guidance or procedures may be issued through official memorandums or SERP Feedback, Alerts and Updates.

Adequate security equipment and facilities must be provided to safeguard money, securities, etc., handled in the Deposit Activity Function. Managers will contact appropriate AWSS Security Representative, or Campus' Security Function for additional advice or assistance on security matters (refer to IRM 10.2.11, Basic Security Concepts). Money chests, vaults or cabinets affording adequate security must be available in restricted area of Campus' Deposit Activities. These containers must comply with requirements contained in IRM 10.2.14.3, Methods of Providing Protection, Containers.

The following items are strictly prohibited from the secure Receipt Processing area:

Random Reviews of All Persons in the Secured Area. First line managers or a designated representative will conduct and document monthly random reviews of employee compliance with all security policies as they relate to personal belongings and usage of camera cell phones in the secure remittance processing areas. The reviews must include each employee at least once during the month. The review will be completed at the beginning of the shift and/or upon entrance to the secure receipt processing area. Management shall maintain documentation that includes the date, unit number, employee name, description of item(s) found (if no findings, mark "None" on the review check sheet) and the reviewer's initials. See Exhibit 3.8.45-2.

Provide each teller/cash clerk with a separate lockable money bag, cash box, or compartment. Each container should be equipped to be opened only by a separate key or combination.

The teller/cash clerk or remittance perfection technician will lock the safe, vault, money chest, or other receptacle or facility provided therein to store funds or other valuables including the door of the teller's/cash clerk's working area whenever the working area is left unattended, refer to IRM 10.2.14, Methods of Providing Security.

Part 1 of Standard Form 700 is required to be posted inside security containers, including high level security containers and safes storing Form 809, Receipt for Payment of Taxes, monies, and items of value in all remittance processing areas. When completing Form 700, ensure the name(s) of personnel with the combination or keys to respective container is (are) listed on the front of Standard Form 700. The combination and/or duplicate key to lock money chests, vaults, cabinets, money bags, cash boxes or compartments, in which funds are held, will be placed in a sealed envelope for use in the event of an emergency. The envelope (Part III of Form 700) containing a combination and/or duplicate key must be stored under the same protection required for container. The procedures to be followed are the same as Field Office Remittance Processing Area, refer to IRM 10.2.14, Methods of Providing Protection.

Change the combination or locks on all containers immediately when one of the following conditions exists:

If it becomes necessary to open a teller's/cash clerk's locked compartment in the absence of the teller/cash clerk, two responsible employees will be selected to use duplicate key or combination. They must count the money and prepare a statement of the money and documents found. Both must sign and attach the statement to the receipt that the teller/cash clerk previously signed for the change fund. The monies and documents are then balanced.

Safeguard cash remittances at all times. Keep cash in a locked container or deposit bag to await deposit pick-up after teller's/cash clerk's balancing operation is completed. The key to that container is held by the teller's/cash clerk's immediate manager or other designated employee. Cash conversion to cashier's check or money order are permitted. Use this action in lieu of safeguarding instructions.

The deposit manager or designated employee must conduct periodic unannounced reviews of the items on the Cash Receipts Records and Deposit Tickets monthly, or no less than quarterly. Record when the reviews are completed and the findings. Maintain the records of completed reviews for a year at minimum and include whether an in-depth review is necessary.

Only authorized employees may have access to cash vaults. Restrict all areas in which deposit operations take place in accordance with IRM 10.2.14, Methods of Providing Protection. Any person entering must be given appropriate clearance from a responsible official. Such clearance must be based on satisfactory identification of individual(s) and appropriate reason for entering.

Managers and employees should report any employee or manager suspected of theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484 immediately.

Managers of areas receiving Discovered Remittances must perform monthly reviews of Discovered Remittance Logs, Form 4287, and take appropriate action to eliminate or reduce mishandling of receipts.

Use of IRS computer equipment and systems such as IDRS require conformance to security rules. Mandatory briefings are conducted annually regarding these requirements.

The Service requires internal control of tax receipts to ensure security during transit. On rare occasions, Submission Processing Campuses (SPC) transship remittances thru common carrier for processing. Rare cannot be overemphasized! Nearly always, tax receipts must not leave the secured area; rather SPCs are required to process tax receipts on the day of receipt. An example scenario of transshipping a tax receipt (remittance, taxpayer payment) would be a site needing to transship a foreign remittance to a bank for processing. All senders of tax receipts are required to use overnight traceable method to send tax receipts. The use of a completed transmittal, such as Form 3210 Document Transmittal, listing package contents, is required. The name of the sender, return address (with stop number), and telephone number is required on all transmittals. The sender, who is accountable until the funds are received at the destination, must establish a control to ensure delivery of tax receipts and follow up. The control must include amounts of taxpayer receipts by Taxpayer Identification Number (TIN) correlated to the package tracer information. For example, if the transit provider informs IRS that package number 12345-67-89 was destroyed, a control is needed that enables proper identification of impacted taxpayer(s) so that relief can be granted. The sender must follow-up within 2 business days to ensure delivery of the remittance package. Access the carrier's website, i.e., ups.com, or usps.com and trace the package. Follow up with the destination contact within 10 working days if necessary. Immediately report all lost remittance packages to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Lost or stolen remittances must also be reported to the campus remittance security coordinator. Lost personally identifiable information (PII) must also be reported to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

All Service employees must take care to protect personally identifiable information (PII). Any loss of PII could result in information being compromised to perpetuate identity theft. PII information must be encrypted on computers, E-mail. Sanitize taxpayer PII or use secure messaging. If you suspect or know of a potential information loss, report it to your manager, the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

The Daily Deposit Report (DDR) is used to monitor the campuses total daily deposits.

Daily, campuses must E-mail the current day's Daily Deposit Report to FMS with a "cc" to Headquarters (HQ) by Beginning of Business (BOB) of the following day. (For example, deposit data for Tuesday must be E-mailed to FMS and HQ by BOB Wednesday). Forward the report to the following E-mail addresses:

Immediately contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ; or thru E-mail at Cathy.R.Andrews@irs.gov and Ricky.Holmes@irs.gov when these reporting requirements cannot be met.

The Deposit Function is required to report total dollars and items deposited to Headquarters and Treasury on a daily basis. There will be periods when it is necessary to work weekends to meet the deposit requirements or to meet the Program Completion Date (PCD).

When the Deposit Function works weekends, you must report by BOB Monday morning the total dollar amount and item count that was processed on Saturday and Sunday.

When it is necessary to work a holiday, the dollars and items deposited on the holiday, will be included in the next business day's deposit report.

If the holiday is a state holiday, but not a federal holiday, FMS regulations require that the deposit must still be made. The Receipt and Control Operations Manager must have a contingency plan for days when the depository that receives the daily deposit is closed and the IRS campus is open.

When a manager or an employee becomes aware of a loss or shortage, including a breach of personally identifiable information (PII), the loss or shortage must be reported immediately.

The manager will obtain a statement within 5 workdays from the employee who discovered the loss or shortage. The report will contain the following items.

Managers will prepare a statement, to the best of their knowledge, pertaining to loss or shortage. The statement will contain the following items.

The Operations Manager, Receipt and Control, is responsible for notifying the Territory Manager or Department Manager and Campus' Director to contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if thefts or embezzlements by employees are suspected; the local Security function, if loss is caused by robbery, burglary, or through casualty; and/or the Secret Service, if loss involves counterfeit money still in possession of IRS. Lost or stolen personally identifiable information must also be reported to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Prepare and transmit a preliminary report within 10 workdays to Chief, Service Center Accounting and Deposit, SE:W:CAS:SP:ATP:SCAD, Headquarters Submission Processing, when a loss is caused by apparent embezzlements, robberies, or other discrepancies. The report must include documentation covering circumstances of loss, recommendations for corrective action, if any, and a copy of the Inspector's report.

Provide a copy of the loss report to the Campus' Accounting Operations within 10 workdays.

Procedures for requesting relief and more detailed loss information are contained in IRM 3.0.167, Losses and Shortages.

The commercial depositories for campuses are selected for a specified period (with two one-year renewal options). They are chosen through a competitive bid process initiated by IRS and directed by the Treasury Department, Financial Management Service (FMS).

The affected campus will be requested to submit requirements in memorandum form, detailing the specific items necessary for a good working relationship. This memorandum will become a part of the bid process and should include statistical data, deposit characteristics, balancing issues, a list of IRS officials and managers, and any local issues.

The first part of the statistical data required, will be taken from a two week period preceding the preparation of the memorandum. The data will contain the following elements.

The second part of the statistical data will be taken from the preceding 12 months. The data will contain the following elements.

Certain deposit characteristics required to be in the memorandum will include the following elements.

The memorandum will contain procedures for balancing the deposits. The procedures should cover the following elements.

The memorandum will contain a list of IRS officials and managers, position titles, description of area of responsibility, and phone numbers.

The memorandum will contain any local issues, e.g., deposits of currency, courier service, sorted/unsorted checks (in-city/out-of-city).

When the Director, Funds Flow Division within FMS, approves a bank as a depositary, notification will be sent to the bank and to the Business Operating Division. The Operating Division will notify the Campus' Director. The campus will then begin depositing in the newly authorized depository on the date agreed upon. When available, Campuses will be provided a copy of pertinent portions of the contract.

If a Field Director, Submission Processing desires to discontinue the use of a designated depositary, the request will be sent to Headquarters Submission Processing, Attention: Chief, Service Center Accounting and Deposit SE:W:CAS:SP:ATP:SCAD, for transmittal to Financial Management Service.

All bonded courier service contractors must understand and adhere to the following language:
As an independent contractor under contract with the Financial Institution or Submission Processing Campus, you must fully understand that much of the information that is provided to courier service contractors and its employees is privileged and legally and administratively restricted and falls under the provisions of the Privacy Act of 1974 and the Internal Revenue Code (IRC) Section §6103, Section §7213 and Section §7431. The Privacy Act, the Safeguards, and the Criminal/Civil Sanctions paragraphs specify the courier service contractor's responsibility and liability regarding disclosure of this information. At the expiration of the courier service contract with the financial institution or Submission Processing Campus, the courier service contractor is required to return all documents in its possession to the Internal Revenue Service.

Deposit items that are not processed through ISRP must be processed following the regular Manual Processing procedures for each document/return type. Below is a list of deposit items that are processed as Manual items.

Photocopies of checks processed manually will be maintained in a separate file for up to six months. The file will be maintained in a separate locked cabinet to protect taxpayer personal data. If your depository provides access to an online viewing system with images of the checks deposited manually, this paper file does not need to be maintained.

A provision for depositing cash may be negotiated between FMS and your TGA Bank. Cash deposits will be less than $5,000.00.

Cash received in the mail, historically less than $5,000.00, will be deposited within the 5 day exception requirement, contained in Volume 1, Chapter 6-8000, of Treasury Financial Manual (TFM). If the campus receives cash in the amount of $5,000.00, or more, an ad hoc pick up must be arranged with the depository or local management will convert the funds and process. All cash payments for taxes received must be deposited at the earliest deposit pickup.

Verify with a counterfeit marker that all bills deposited are legitimate.

Form 809 will be completed along with Form 2679, Teller's Daily Reconciliation and Balancing. Form 809, Part 2, will be mailed to taxpayers by the morning following deposit of the cash. Form 809, Parts 1 and 3, will be turned into the Field Office Payment Processing unit for weekly review.

Employees will turn in daily the recorded dollar amounts of cash and completed Forms 809 Part 1 along with a completed Form 2679 Teller’s Daily Balancing and Reconciliation (in triplicate) to the designated deposit reviewer. The 809 employee and the reviewer will agree on the dollar amounts as witnessed and receive a signed copy of Form 2679 Teller’s Daily Balancing and Reconciliation for their records.

If your campus processes cash in the Field Office function, see procedures in IRM 3.8.47.5.25 .

The following are the primary transaction codes for crediting a payment to a taxpayers account. (Refer to Document 6209, IRS Processing Codes and Information for complete information). Transaction Codes in scan lines of payment posting vouchers and pre-printed Transaction Code information on notices and letters utilized as payment posting vouchers, should be considered as the appropriate Transaction Code for posting payments. If there is any question as to the validity of the pre-printed Transaction Code on the notices or letters and in the scan lines, please contact HQ Analysts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for further guidance.

The following are the secondary transaction codes used for debiting a taxpayer's account. (Refer to Document 6209 for complete information.)

Form 3244 that contain Transaction Codes 170, 270, 160, 670 and 680 will be posted as a Manual Deposit. ISRP will allow for posting of one primary, one secondary, one designated payment and one tertiary (a third transaction amount for one document; must be a debit amount).

The Over The Counter Channel Application (OTCnet) is a secure web-based application that:

As campuses use OTCnet to create deposit tickets, employees in the Deposit Function are designated as Deposit Preparers, Deposit Approvers, and Agency Viewers. See the roles and responsibilities of these employees in IRM 3.8.45.2.2.1 below.

The Custodial Detail Data Base (CDDB) is an enhancement to the Financial Management Information system created to track all individual payments that comprise a deposit ticket, and balance the individual transactions against the deposit ticket totals which have been entered in the Redesign Revenue Accounting Control System (RRACS) General Ledger.

As of January 1, 2008, all payments will be assigned a 20 digit Trace ID Number for tracking purposes. CDDB will track all individual payments against the Deposit Ticket totals, which have been entered in the RRACS General Ledger. This unique Trace ID Number will allow all payments to be identified and added to the CDDB.

For Manual Deposit Tickets, the Trace ID Number is assigned by the Batch Block Tracking Sytstem (BBTS). The first 14 digits represent the Deposit Ticket Trace ID Number and the last six numbers represent the Transaction Sequence Number of each individual payment that comprises the Deposit Ticket. The Transaction Sequence Number begins with 000001, and is sequentially assigned to payments within a Deposit Ticket.

The Trace ID Number for Manual Deposits will be obtained from BBTS. All Manual Deposit employees assigned responsibility for accessing BBTS must submit a Form 5081, Information System User Registration/Change Request to obtain access.

BBTS will print the Trace ID Number on the bottom left of Form 813A and assign a Transaction Sequence Number to each payment on Form 813.

For payments received with returns that must be processed through Manual Deposit, the payment and the return must be separated. A Form 3244 must be prepared to process the payment through ISRP using Transaction Code 610. The ISRP System was not programmed with a Trace ID Number Field for program numbers associated with return processing; only revenue receipt program numbers were programmed with a Trace ID Number Field. To enable the Trace ID Number to be processed through the GMF Pipeline System and to Master File for posting to the CDDB Database, the Document 3244 must be prepared for input to the ISRP System. Stamp the Trace ID number on the Form 3244 as noted in (5)c above. The Trace ID number may be typed when utilizing the electronic version of the Form 3244. The return must also be processed through ISRP with the appropriate non-revenue receipt program number, but DO NOT green rocker the money amount.

The Payment Perfection function within the Deposit Activity performs analysis and research on remittances and returns/documents that require additional preparation prior to depositing money. They also code or edit for other functional areas to ensure all taxpayer information is available to credit taxpayer accounts.

Types of possible remittances the IRS campus may receive for processing can include any of the following.

Keep remittance with source document; do not staple together. Prior to processing, remove check stubs and any staples attached.

If payee is IRS only, CASH or blank, stamp United States Treasury on payee line.

Money orders must have either the name of the taxpayer or TIN. If not present or legible, enter taxpayer's TIN as it appears on the accompanying source document.

When travelers cheques are received by mail, compare the counter signature with the original signature. If the signatures match, process the payment.

When gold coins are received from a taxpayer,

If remittance is not made payable to the United States Treasury or one of the acceptable payees listed in IRM 3.8.44.4.2(1), Extraction of Envelope Contents for Returns and Documents With Remittance, return the remittance to the taxpayer with Letter 2689C or Letter 4480C. Refer to correspondence procedures.

If a remittance is unsigned and the amount of the check can be determined, process the check. The signature line on the check does not have to be stamped "Drawee Bank Obtain Signature."

The numeric amount on the remittance will normally be used for processing. There may still be times when the money amount to use is questionable. The following table should be used to determine how to process the payment:

Counter Signature: Remittances that need an endorsement other than the encoded endorsement should be stamped with the name of the Operations Manager, Receipt and Control.

If a canceled check is received with "Endorsement Erased" stamped on the back, process through preferred processing system.

If not stamped "Endorsement Erased" , photocopy both sides of check and attach to any correspondence received. Route to appropriate function. Return check to taxpayer using Letter 2689C or Letter 4480C.

If check is stamped "Account Closed" , forward to Dishonored Checks area. If holes are punched across bank's account number, return to manager. If check is stamped "Secured" but has holes punched in routing numbers, process remittance. If not stamped, return to taxpayer.

If a substitute check that has been processed pursuant to the Check Clearing for the 21st Century Act (Check 21) is returned by a bank, forward the substitute check to the Dishonored Check function.

Cash and non-cash remittances, including credit cards, debit cards and gift cards, found during pipeline processing at the campus after the mail opening operation are discovered remittances. If discovered remittances are identified, refer to IRM 3.8.46 , Discovered Remittances.

Revenue officers may collect levy payments or seize checks as part of their official duties. If the check is only made payable to the taxpayer, or payable to the revenue officer, the officer is required to endorse the check. When a seized check or money order is received without endorsement, and the check was received from a revenue officer on their Form 795 Daily Report of Collection Activity or Integrated Collection System, (ICS) Return and Remittance Report, process the check by typing the following statement: "This check and the proceeds thereof have been seized or levied under authority of Title 26, United States Code, Section 6331, for application on the unpaid tax liability of (Name of taxpayer), and is herewith deposited to the credit of the Treasury of the United States, (Name of Territory Manager of the IRS with City and State)."

Endorsement should be placed within the 1.5 inch area beginning at the leading edge of the check.

Unacceptable Payment of Taxes are items that the Depository Bank will not accept as payment. Any of the following items found in the Payment Perfection Unit must be returned to the taxpayer using Letter 2689C or Letter 4480C.

Return the items of monetary value exceeding $10 by "Certified" mail, and items under $10 by regular mail, within 24 hours of receipt. Process accompanying returns/documents as non-remit.

Credit cards for payment are not processed by the Campus Deposit function. Taxpayers may use a credit card to make payments towards balances owed by telephone. If you receive a taxpayer's credit card or correspondence with their credit card information in the mail, the Deposit function will send the credit card back to the taxpayer using "Certified" mail along with Letter 4480C , advising the taxpayer that the IRS does not have the capability to process credit card payment transactions when the credit card or credit card information is submitted with the return or a return adjustment.

Items of value that cannot be returned because the taxpayer cannot be identified, will not accept, or is undeliverable, should be maintained in a locked safe for the current year plus three years.

Do not process MoneyGram receipts as a form of payment. MoneyGram is a wire transfer service. Funds are transmitted electronically from MoneyGram to the recipient. Forward receipt and any correspondence to Accounts Management.

Campuses are receiving questionable remittances that resemble checks and money orders. In most cases, these remittances show the taxpayer and the "United States Bureau of Internal Revenue" as payees. The bogus remittances may include other identifying characteristics. DO NOT PROCESS ANY REMITTANCES CONTAINING THE FOLLOWING CHARACTERISTICS:

A large majority of the bogus remittances are received by "Certified" or "Registered" mail. They may be accompanied by the following documents:

Upon receipt of a suspicious remittance, process using the following procedures.

Returns or documents may need additional processing. Payment Perfection Unit will work to perfect these documents.

Imperfect returns or documents requiring additional perfection/editing/research prior to depositing remittances. Payment Perfection personnel will:

Perfect returns or documents contain a legible taxpayer name, Taxpayer Identification Number (TIN) (Employer Identification Number (EIN) only for Form 5330 and Form 8288), one MFT code, multiple tax periods, one plan number (Form 5330 , Form 5500 series and Form 5558 only), one report number (Form 8038-T returns only) and one remittance.

BMF original returns/documents processed through ISRP must include certain information. If not present, edit the source document with the missing information.

BMF documents other than original forms must contain the information listed below. Edit the missing information on the source document.

IMF original returns must contain the information listed below. Edit the missing information on the source document.

IMF documents other than original must contain the information listed below. Edit the missing information on the source document.

IMF return/document received with primary name and ITIN change must be researched. Review returns for indication of Amnesty cases or "new SSN," to determine if SSN is entered correctly.

Use the following procedures for BMF return/document with TIN or name change.

Further instructions are as follows:

Form W-7 is an application for an Individual Taxpayer Identification Number (ITIN) for non-citizens. ITINS may not be issued without a Return or some proof of a need for an ITIN. That means ITINS will not be issued for 2-3 weeks from receipt of the request. Remittances received with Form W-7 should be processed using the procedures below.

When a Form W-7 for a spouse or dependant(s) is received with a remittance and a return with a primary SSN, process the payment through ISRP and apply the payment to the primary taxpayers' SSN.

All Form W-7 received at campuses other than Austin must be forwarded with a Form 3210, Document Transmittal to the ITIN Unit at the following address. Include the return, source documents, and attachments received with Form W-7.

When a return and remittance are received with Form W-7 but no primary SSN is present on the return and the primary SSN cannot be determined, process the payment to Unidentified. Route the documentation and a photocopy of the check with the Unidentified DLN written or stamped on it to the Austin Submission Processing Campus (AUSPC) at the address listed above.

When a return and remittance are received and the return indicates "Applied For" (no Form W-7 is attached), the following steps should be taken to process the remittance and return:

When a Form W-7 only is received with a remittance, apply the payment to Unidentified. Route the documentation and a photocopy of the check with the Unidentified DLN written or stamped on it to the AUSPC at the address listed above.

If IDRS research fails to identify proper application of a remittance, telephone contact may be made with taxpayers. Strict adherence to disclosure requirements must be maintained. Refer to IRM 11.3, Disclosure of Official Information. Extreme care must be taken when speaking to taxpayers or their appropriate officers to obtain information. Identify yourself immediately. Use Federal Telecommunications System 2000 (FTS2000), whenever possible, to contact taxpayers. If the taxpayer asks for any account information, refer them to 1-800-829-1040. If the taxpayers' phone number is not available on the remittance or document, obtain the phone number from Directory Assistance (FTS, taxpayer's area code, and 555-1212) or any on-line Directory Assistance tools.

The Quality Communication Job Aid http://win.web.irs.gov/am03jax/Ops5/QUALITY%20CORNER/COMMUNICATION%20JOB%20AID.htm provides guidance on the quality of communications and a self-study module.

Mail-opening equipment can mutilate checks during processing. When this occurs, remittance processors should tape the check back together, place in a transparent sleeve, and deposit thru ISRP. The financial institution will determine if a mutilated check can be processed. If it cannot be processed, the check will be returned to IRS by the financial institution and processed by the Dishonored Check function as outlined in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF) . Additional guidance on mutilated checks is listed in the table below:

Payment Perfection Unit (PPU) will receive all Government Checks from the Extraction Unit that have been stamped below the "Pay to the order of" line with the following statement "UNLESS FOR CREDIT TO THE UNITED STATES TREASURY, THIS INSTRUMENT IS NON-NEGOTIABLE" .

PPU must separate the valid government checks for payment of taxes from returned refund checks.

All remittances where the payee line is made payable to the United States Treasury, Internal Revenue Service, Commissioner, Department of the Treasury, Social Security Administration or variations of any agency or department of the United States Government should be construed to be a payment to the United States Government.

Process the valid government checks for payment of taxes through normal processing.

Forward the Returned Refund/Rebate Checks along with any document(s) to the Refund Inquiry Unit using Form 3210, Document Transmittal. Form 3210 must list the following information from each check:

If a Returned Refund/Rebate Check accompanies a valid payment of taxes, or is endorsed by the payee, process as follows:

Management Reviews. Managerial reviews by the Supervisor must be conducted and documented at least quarterly to ensure adherence to internal controls for the security of the returned refund checks forwarded to Refund Inquiry on Form 3210 , Document Transmittal. Management may, at its discretion, conduct these managerial reviews at more frequent intervals.

The Integrated Automation Technologies (IAT) Tool for Payment Perfection (formerly known as the IDRS Decision Assisting Program (IDAP) Tool for Payment Perfection) should be utilized to perform IDRS research. This section provides general guidance for only a few basic scenarios relative to Payment Perfection IDRS research. Refer to these instructions in the absence of the IAT macro for payment research. Also, in this section are a few IDRS command codes that are required to be researched in order to apply a payment accurately. This is not an all inclusive list. It is intended only to provide a basic point to begin payment research. There will be situations when more extensive research may be required, for example, the procedures outlined in IRM 3.8.45.10.2 . Refer to ADP/IDRS handbooks, referenced IRMs and Job Aids for complete information. There is also much information on SERP: http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/idrs_command_codes_job_aid.htm . The job aids on this site are viewable and easily printed.

Always check cross-referenced TIN to ensure proper posting.

The IRMs for the above-mentioned IDRS Command Codes are as follows:

A Payment Posting Voucher must be prepared whenever a source document is not available and the payment cannot be processed through ISRP. A list of payment posting vouchers follows: