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Part 5. Collecting Process

Chapter 4. Case Processing

Section 1. Remittance Processing

5.4.1  Remittance Processing

5.4.1.1  (05-31-2000)
Overview

  1. Remittance processing has been centralized to the ten Service Centers of the Internal Revenue Service. This was based, in part, on recommendations from a multi-functional task group that conducted a two-year study that concluded centralization would result in a more efficient and effective processing. This meant that the Area Office Teller Unit Functions would close and tax receipts will be sent directly to designated service centers for processing.

  2. Service Centers will now issue and track Form 809 (Official) Receipt for Payment of Taxes, (Exhibit 5.4.1-1) and accompanying workload. All area offices, including Posts of Duty (POD), must send tax receipts by overnight traceable carrier services.

  3. This manual will outline the roles and responsibilities necessary to complete the work in the Area Offices.

  4. The area Case Processing Support is responsible for the processing operations in direct support of field operations. These operations include:

    1. receipt and transfer of remittances and tax returns to the service centers via overnight traceable mail;

    2. analysis and perfection of IDRS input;

    3. input of data to and extraction from the Integrated Data Retrieval System (IDRS);

    4. research of IDRS, Microfilm Replacement System (MRS) and other data files;

    5. maintenance of closed files; and

    6. other direct, specialized clerical support services, including Centralized Quality Measurement System (CQMS) sample selection.

5.4.1.2  (05-31-2000)
Area Office Roles and Responsibilities

  1. Area Offices are responsible for the security of taxpayer receipts and accountability of funds during transit. Area coordination is important to the Service Centers success in absorbing the teller function.

5.4.1.3  (05-31-2000)
Area Office Managers

  1. Area managers are responsible for establishing and maintaining adequate controls that clearly connect taxpayer receipts listings on transmittals with traceable overnight mail packages. This ensures security of taxpayer receipts (including 809s) until they are received at the service center.

  2. Informing the service center liaison of all workload trends is very important. It is the responsibility of the manager to inform their service center contacts of large volumes of workloads such as large volumes of bankruptcy trustee payments. Managers must ensure all payments are added correctly and equal the total amount due for those taxpayers listed.

  3. Managers need to complete an annual reconciliation of Form 809 receipts. This will be assisted by the Service Center Teller Function.

5.4.1.4  (05-31-2000)
Area Office Liaison

  1. Area office liaisons are responsible for ensuring that service center liaisons have all important information to perform the job of remittance processor. An authorized listing of Form 809 users should be provided to the service center. This listing should include the user's name, group number, badge number, manager's name, symbols, office street address, telephone number and fax number.

  2. The area office liaison must determine local procedures (specific time and place) for ensuring that these local customer function's (i.e., Taxpayer Advocate, Appeals, Examination, etc.) daily remittances are included in the courier pickup package at the specified time of pickup.

  3. Area office liaisons must transmit all remittances via traceable overnight courier service. Examples of these services are Federal Express (FEDEX), United Parcel Services (UPS), or a traceable ground service. All remittances must be sent with Form 3210 Document Transmittal enclosed in the traceable package. Area offices must prepare and mail these transmittals with the attached documents by the close of each day or as early possible the next business day. They will send an original and duplicate copy in an envelope sealed by the originator.

5.4.1.5  (05-31-2000)
Document Transmittal

  1. The area will be responsible for submitting a variety of remittances, tax returns, and posting documents, to the service centers. Many of these are submitted with a cover sheet, or transmittal, which list all the items sent from the customer functions. Generally the transmittal is Form 795A(CG) Daily Report of Collection Activity, Supplemental Form 795B(CG) or Form 3210, Document Transmittal.

  2. All remittances, tax returns and posting documents require a transmittal.

  3. Some criteria for perfecting the transmittal document:

    1. Each payment and/or return secured date should agree with the Form 795.

    2. Double check to make sure all remittances and documents listed on the transmittal are attached.

    3. Make sure checks and associated voucher amounts are the same.

  4. Procedures for Mailing Tax Receipts to Submission Processing Centers:

    1. Daily remittances (i.e., checks) must be sent by overnight traceable mail to designated Submission Processing Centers. This can include registered mail with the United States Postal Service. Federal Express, United Parcel Service, or any other officially recognized mail carrier. These mailings must be double-wrapped in opaque paper envelopes or boxes.

    2. Receipts must be transshipped to the designated submission processing center address for remittances on the day of receipt from the taxpayer, or as soon as possible the next business day. Cash must be converted before mailing. Include a completed posting document, listing package contents, is required. Forms 809. Receipt for Payment of Taxes, are transmitted via Form 795, Daily Report of Collection Activity, or automated version. Standard Form 3210, Document Transmittal, may be used to transmit other receipts. The name of the sender, return address (with stop number), and telephone number is required on all transmittals.

    3. The sender must establish a control to ensure delivery of tax receipts. The control must include amounts of taxpayer receipts by taxpayer identification number (TIN), correlated to the package tracer information. This is needed to enable proper identification of impacted taxpayer(s) so that relief can be granted if, for example, the transit provider informs IRS that package number 12345-67-89 was destroyed. Submission processing centers must return acknowledgement copies of transmittals to originators within 5 workdays. Senders must follow up with the destination submission processing center within 10 workdays on deposit packages not acknowledged by the center.

  5. The inside envelope or box is required to contained the following:

    1. Name or the person who is authorized to open the package.

    2. Address of the receiving office

    3. Return address of the office mailing the package.

    4. "Limited Official Use" is required to be clearly marked or stamped on the front and back of the inside envelope or box.

    Note:

    The person authorized the open the package will be the Submission Processing Manager with responsibility for deposits. The manager will retain responsibility for the receipts, but may designate specific staff members who may open the package.

    Though not required, we recommend that "Large" be annotated on envelopes containing a single remittance of $100,000 or more of if the aggregate total of remittances is $100,000 or more.

  6. The outside envelope is required to contain the following:

    1. Title of person authorized to open the envelope or box.

    Note:

    Name of the person must not be included. Office name and address of the receiving office, and return address of the office mailing the package.

  7. IRS offices and officials are required to adhere to this policy, unless Submission Processing and Collection approve an alternative approach. In this regard, Submission Procession and Collection will consult the Office of Systems Standards and Evaluation prior to granting such approval.

5.4.1.6  (05-31-2000)
Form 3210 Document Transmittal

  1. Form 3210, Document Transmittal is generally used by Non-Collection employees, such as Appeals, Customer Service and Examination, to transfer certain items such as remittances attached to posting documents or tax returns and tax returns to the Service Center's Receipt and Control, Remittance Perfection Unit. Area offices must prepare and mail Form 3210 with attached documents to the services centers by close of each day or as early as possible the next business day. An original and two duplicate copies must be sent in a sealed envelope. The envelope should be annotated as containing the Form 3210 and must be included in the Overnight package. The Area Office Liaison must be sure to review the Form 3210 for completion before enclosing in the overnight package.

5.4.1.7  (05-31-2000)
Forms 795A(CG) Remittance & Return Report and Form 795B(CG), Closure/Document Transmittal Processing

  1. Form 795A(CG), Remittance & Return Report, is used to transmit returns, remittances, and payment posting vouchers (including parts 1 and 3 of Form 809 (Official) Receipt for Payment of Taxes) by collecting officials. Form 795B(CG), Closure/Document Transmittal, is used to transmit closed cases. If the submission of returns or remittances is delayed or the employee has finalized and printed the Remittance & Return Report, the originator will transmit the returns or remittances on a supplemental Form 795A(CG). This form will have "SUPPLEMENTAL DAILY" printed on the top of the form. If the submission of closed cases is delayed or the originator has finalized and printed the Closure/Document Transmittal, a supplemental Closure/Document Transmittal will be necessary. The supplemental Closure/Document Transmittal will have "SUPPLEMENTAL DAILY" printed at the top. All supplemental dailies require managerial approval to print.

  2. Form 795A(CG) and/or Form 795B(CG) must be prepared by the collecting employee and submitted to the service center at the close of the business day or as soon as possible the next business day unless the collecting employee is absent for two days or more. In that instance, a Form 795A(CG) is prepared covering the period involved. An originator of Form 795A(CG) must convert cash payments to a check or money order prior to delivery to the service center. Under no circumstances should cash be sent in the overnight package.

  3. In the event that an employee has an Alternate Work Schedule AWS or works out of the office (field employees), annotate at the top of the Form 795A(CG) in Red "Flexiplace" or "Field Employee" . Ensure the top portion of the Form 795B(CG) is complete. It must contain the employee's name, employee's number, title, date, page and initials.

  4. For each payment and return transmitted, check to be sure the following items are correctly entered under the correct heading on the Form 795A(CG) and the originator has initialed and dated the Form 795A(CG).

    • Taxpayer's name

    • Amount collected

    • Return Secured

    • Receipt Number

    • MFT and Tax Period

  5. For each payment and return secured, the received date or transaction date on the posting document must agree with the Form 795A(CG).

  6. Verify that all remittance and documents listed are attached. Place a distinctive check mark in columns as appropriate. Ensure uniform and accurate markings of the original and copy of Form 795A(CG) & 795B(CG).

  7. It is imperative that all the information necessary is listed on both the Forms 795A(CG) & 795B(CG) and the supplemental Forms 795A(CG) & 795B(CG). Errors or omissions made by the area offices, Post-of-Duties or field personnel may be corrected via telephone contact. Others may require the preparation of Form 5919, Teller's Error Advice (Exhibit 5.4-1-2). All errors will be listed on Form 8672, Trends and Pattern Report (Exhibit 5.4-1-3). This report will be provided to all area office liaisons on a monthly basis.

5.4.1.8  (05-31-2000)
Processing of Payments

  1. Payments and related documents such as tax returns must be prepared for shipment to the service center by close of business on the date of receipt from the taxpayer or as soon as possible the next business day. Bankruptcy Trustee checks (one check covering multiple taxpayers for input to the Automated Insolvency System (AIS)) must be received at the designated service center by the fourth day of receipt from the trustee.

    1. All single tax payments of $100,000 or more or the aggregate total is $100,000 or more will be forwarded immediately per (2) below.

    2. All time frames referred to above are "clock hours" (not "work hours" ), excluding weekends and holidays.

  2. Before remittances and tax returns can be shipped to their aligned service center, they must be perfected.

    Examine each remittance to make sure it is negotiable. Look for:

    1. Payers complete signature (however unsigned checks can be submitted for processing)

    2. Valid date (If undated, enter the IRS received date. If check is post-dated, it should be returned to the taxpayer if the date exceeds 10 days.)

    3. Numeric and written amounts should agree

    4. Payee should be "United States Treasury" . If the payee section is left blank or illegible or has the initials "IRS" , it must be over-stamped with the words "United States Treasury" . See Exhibit 3.8.44-4 Overstamping Guidelines, IRM 3.8.44 Service Center Deposit Activity.

    5. If the remittance is in the form of a "refund check" or "substitute refund check" the check should be marked "non-negotiable" and form 3913 must be completed using Parts 2 & 3 as the posting document.

    6. If the remittance is a Treasury check other than an IRS refund if must be less than 12 months old. If it is less than 12 months old, process as appropriate. If it is more than 12 months old, return the check to the taxpayer with instructions to contact the issuing agency for a replacement check.

    7. If the check is made payable to the taxpayer and it has not been endorsed; it must be returned to the taxpayer, unless it is an ACS levy.

    8. If the check is made out to any agency or department of the U.S. Government (having no independent status) the payee should be construed to be the "United States" . You can over-stamp the check with "United States Treasury" . To preclude the possibility of any disputes the payee office should be requested to endorse the check whenever possible. Research prior to overstamping.

    9. If the remittance is received with the payee showing the name of any bank and documentation to show it was intended as an FTD payment, the payee line should be over-stamped with "United States Treasury" and processed.

    10. If the payment is in response to a levy, with the taxpayer as payee, and not endorsed, it should be endorsed as follows, "This check (or money order) and the proceeds thereof, have been seized 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 Treasurer of the United States, Area Director of Internal Revenue Service, (city and state)"

    Once it has been determined the payment is negotiable; an appropriate posting document should be completed to ensure customer accounts are properly credited with the payment.

  3. Extraordinary measures need to be taken to ensure that the interest loss to the Government is minimized for remittances of $100,000 or more (single or aggregate) (except U.S. Treasury checks). Area managers and liaisons will need to be especially cognizant of the need to submit these deposits timely to the service centers. When single remittance is $100,000 or the aggregate total is $100,000 or more, area officials will annotate "LARGE DOLLAR" on the outside of "Confidential Information: To be opened by addressee only" envelopes that are enclosed in the overnight package.

5.4.1.9  (05-31-2000)
Types of Remittances

  1. You must be able to determine if remittances are acceptable or unacceptable. You will transfer only acceptable remittances to the service centers. In order to be acceptable, or negotiable, remittances must meet certain criteria. Perfecting a remittance may be required to ensure that the criteria is met. Remittances must be received at the service centers from the area office liaison/manager or POD, including the date of receipt within 2 days from the collecting employee or 5 workdays (an allowance for mail time; not authority to delay transmitting remittances). Late submissions not meeting the above time frames, will receive an "Information Only" Form 5919 or 5919G from their service centers accordingly.

5.4.1.10  (05-31-2000)
Acceptable Remittances

  1. Generally, remittances are of the following types payable at par through normal banking channels:

    • Cash

    • Money Orders

    • Cashier's Checks

    • Personal Checks

    • Escrow Checks

    • Drafts

    • Foreign Checks

  2. If an employee discovers cash or receives a cash payment and it is too late to convert the cash to a check or money order, steps must be taken to ensure:

    1. The cash is stored in an appropriate facility overnight and retrieved, for conversion by the collecting employee the following business morning. See IRM 1.16.4;

    2. The AO Liaison/Manager will verify that the cash and Form 4287 or 809 amount agree while in the presence of the collecting employee before containerizing these remittances.

5.4.1.11  (05-31-2000)
Review of Non-Cash Remittances

  1. To ascertain negotiability, examine checks and money orders for the following:

    1. Payor's compIete signature (unsigned checks should be returned to the taxpayer for signature).

    2. Valid date—if a check is undated, enter the IRS received date. If a check is post-dated, normally it should be returned to the taxpayer or responsible employee per (3) or (4) below.

    3. Numeric and written amounts should agree. If these amounts do not agree, have the taxpayer correct the check.

  2. Payee should be—United States Treasury:

    1. Remittances (checks, money orders etc.) with the payee section blank or iIIegibIe, Payable to the Internal Revenue Service, or with only the initials IRS must be over stamped immediately with the words "United States Treasury."

    2. If the taxpayer(s) has not endorsed a refund check or substitute refund check (as identified by the notation "Substitute Check" on the face of the check) mark the check "Non-negotiable" and route the check with the completed Parts 2 and 3 of Form 3913, Acknowledgment of Returned Refund Check, and any related correspondence to the service center to be applied to the taxpayer's account. Form 3913, should be completed by the responsible customer function after returning the check per (4) below.

    3. If a check (other than a refund or levy check) is made out with the taxpayer as the payee and the taxpayer has not endorsed it, return the check to the responsible employee per (4) below.

    4. Where the payee office is any agency or department of the United States Government having no independent status , the payee should be construed to be the United States. Such remittances may be endorsed by the Internal Revenue Service, in its capacity as an agency of the United States. However, to preclude the possibility of disputes as to the validity of the endorsement, the payee office or agency should be requested to endorse the checks whenever possible.

    5. If remittances are received with the payee line showing "Internal Revenue Service" or the name of any bank and documentation to show the remittance was intended as an FTD payment, the payee line should be over stamped with "United States Treasury" and the payment forwarded for deposit.

    6. If the payee is not U.S. Treasury or another government agency, examine the reverse side of the check for an endorsement by the payee. If not endorsed, return check to the taxpayer or responsible employee (as appropriate) per (3) or (4) below.

    7. If a Treasury bond has been submitted, return it to the taxpayer or responsible employee (as appropriate) Per (3) or (4). Taxpayers must arrange redemption of the bond(s) through their local Federal Reserve Bank or the Bureau of Public Debt, Division of Loans and Currency, Washington, D.C. 20226.

    8. Treasury checks must be cashed within 12 months of the issue date on the check, per Public Law 100–86.

    9. If a Treasury check is issued as an IRS refund, review the issue date. DO NOT PROCESS THE CHECK. Mark or stamp "Non-negotiable" in the signature area on the front of the check and cross out any endorsements, if present. Forward it with any attachments to the Taxpayer Relations, Refund Inquiry Unit, at the service center. If a live return accompanies the check, photocopy the return, attach it behind the non-negotiable check, and forward to Taxpayer Relations, Refund Inquiry Unit.

    10. If the Treasury check is other than an IRS refund, review the issue date. If it is less than 12 months old, process the check as appropriate. If it's older than 12 months, DO NOT PROCESS THE CHECK. Return it to the taxpayer with an explanation and instructions to contact the issuing agency for a replacement check.

    11. Treasury checks of $5,000 or more must be forwarded to the service center as quickly as possible.

  3. If a levy check or money order lists the taxpayer as payee and is not endorsed by the taxpayer, the following endorsement (which may be either typed or rubber-stamped) should be made: "This check (money order) and the proceeds thereof have been seized 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 Treasurer of the United States. Area Director of Internal Revenue, (City and State)."

  4. Remittances submitted directly by a taxpayer that must be returned, will be transmitted to the taxpayer under a completed Form 8121, Return of Unacceptable Payment.

  5. Remittances that are non-negotiable or are deemed unacceptable will be returned with a response required Form 5919 to the responsible employee's supervisor.

5.4.1.12  (05-31-2000)
Unacceptable Remittances

  1. Caution is advised as to the negotiability of a monetary instrument when accepting payments in person or by mail. Acceptance of a bogus/phony remittance could cause a lien to be released prematurely or an unlawful refund issued.

  2. If a suspect suspicious or irregular remittance is received, follow these steps:

    1. Do not handle or touch the item if possible, including the envelope and any other correspondence that may have been included. This is to aid in lifting finger-or palm-prints as evidence.

    2. Immediately contact the manager and Criminal Investigation or Inspection if there is any doubt about the legitimacy of a particular instrument.

    3. Do not contact the taxpayer, payer or remittor indicated on the remittance to ascertain if the item is legitimate.

    4. Do not refer or discuss the questionable remittance with anyone or any agency outside the IRS. This includes photocopies or faxing of the item to anyone other than an authorized IRS employee.

    5. Educate the employees so they will be prepared should they encounter an "irregular remittance."

  3. In the event Criminal Investigation or Treasury Inspector General for Tax Administration (TIGTA) chooses not to pursue the matter ( see (2)(b) above), send a letter of explanation to the taxpayer, along with the suspicious remittance. State that the Area Director or delegated Service employee has authority to refuse acceptance of a remittance if there is doubt that it would be honored upon presentment to a financial institution. The appropriate definition should be included as the basis for return:

    1. A money order is defined in Treasury Regulation 301.6311–1 as an instrument issued by a United States post office, bank, express, telegraph, or domestic building and loan association (as defined by Section 7701(a)(19)), or by a similar association incorporated under the laws or a possession of the United States, or such other organization as the Commissioner may designate.

    2. A check must be drawn on banks and domestic building and loan associations incorporated in the United States and must contain magnetic encoding. Checks drawn on a bank that has closed or been sold cannot be accepted.

    3. A sight draft (a form of check negotiable through commercial banks) requires a service charge to process. This fails Treasury Regulation's 301.6311–1 "at par" test (payable "at par" means only if there is no deduction for exchange or other charges).

5.4.1.13  (05-31-2000)
Reporting Discovered Remittances

  1. All employees who discover remittances (cash, checks, or money orders) must immediately handcarry such funds to the area manager/liaison. A discovered remittance is not being handled per normal processing; rather it involves remittances found with a closed or suspensed case in the files areas, under a cabinet or any other unusual location.

  2. The employee will immediately notify the supervisor of the area wherein the remittance was discovered to verify with him or her the amount of the remittance and date of discovery. Form 4287, Record of Discovered Remittances, will be prepared in duplicate, signed by the employee, verified and signed by the supervisor (Exhibit 5.4.1-4). Cash will be converted to a money order by the discovering employee or a management designated official. The Form 4287 along with the discovered remittance will be forwarded to the area manager/liaison in a sealed envelope. The area manager/liaison will receive the hand-delivered envelope and verify its contents and sign both copies of the Form 4287. The original Form 4287 will remain in the area office with other copies being submitted to the service center per normal channels.

5.4.1.14  (05-31-2000)
Examination and Perfection of Posting Documents

  1. All remittances must be attached to a posting document. The posting document indicates where the payment is to be applied. Posting documents are written instructions prepared by the customer function that provides information about the taxpayer's account. Unless otherwise instructed by the taxpayer, payments should be applied to the earliest known tax period in debit status.

5.4.1.15  (05-31-2000)
Reconciliation of Remittances and Tax Returns

  1. Before remittances and tax returns can be shipped to their prospective service centers, they must be reconciled. All remittances must total the amounts entered on either the Form 795A(CG) or the attached transmittals. All tax returns listed on transmittal forms must agree with the Taxpayer Identification Numbers (TIN) listed on the tax returns. Any and all differences must be corrected before the documents are sealed in the overnight mail package.

5.4.1.16  (05-31-2000)
Timeliness of Remittances

  1. The requirement to send remittances traceable overnight mail applies to all areas and Post of Duty (POD) stations. All remittances must be forwarded to their perspective service centers within 48 hours of receipt from the taxpayer. However this does not apply to field employees such as Revenue Officer that are away from their office due to field calls and alternate work schedules (AWS). Based on this fact, the requirement for these types of payments to be submitted to the service center will begin from the time the payments are received by the group clerk or POD, not from the time it is received by the Revenue Officer. These employees would also continue to use the currently established method.

5.4.1.17  (05-31-2000)
Form 809

  1. The Form 809, Receipt for Payment of Taxes, is a receipt issued when a cash payment is received or in other situations when the taxpayer specifically requests a receipt. Each book of 809 receipts contains 50 consecutively numbered forms of four parts:

    1. Part 1, Posting Voucher

    2. Part 2, Receipt for Payment of Taxes

    3. Part 3, Memo Copy (remittance processor copy) and

    4. Part 4, Receipt Book copy (remains with book cover).

5.4.1.18  (05-31-2000)
Control of Form 809

  1. The Service Center Remittance Processor is now responsible for the processing and control of all Form 809 receipt books. The Area Offices must verify the inventory list is correct and confirm the accuracy of the report. The response is sent to the manager of the service center remittance processing unit within 30 days from the receipt date.

5.4.1.19  (05-31-2000)
Issuance of Form 809 Receipt Book

  1. In the back of each Form 809 receipt book are two copies of a "Request for Forms 809 Receipt for Payment of Taxes." Area office employees will use these forms to request additional books from the remittance processors located at each service center. The request should be made in duplicate. The remittance processor will maintain one copy of the request and submits the other along with the new receipt books.

5.4.1.20  (05-31-2000)
Return of Partially Used Form 809

  1. When an employee is separating, transferring, or no longer required to use a receipt book as part of their task, the partially used Form 809 receipt book will be returned to the perspective Service Center. At no time should the service centers reissue partially used receipt books. These books should be destroyed by the service centers.

5.4.1.21  (05-31-2000)
Lost or Stolen Form 809 Receipt

  1. When a Form 809 receipt book has been reported missing or stolen by a area employee, the immediate supervisor must be notified. The supervisor must then notify the Remittance Perfection Unit Supervisor and TIGTA by telephone. A follow-up memorandum must be issued, sending a copy to the Field Territory Manager.

  2. The Area Office employee to whom the lost or stolen receipt book was assigned prepares a memorandum report, in quadruplicate. The report must be submitted to their manager. A copy of the report, on Form 795, Daily Report of Collection Activity, is sent to the service center remittance processor. The processor will file the report in place of the missing receipts. The memorandum of explanation should include:

    1. name and post of duty of the person reporting the loss;

    2. serial numbers of the receipts recovered;

    3. date the receipts were recovered

    4. date of the memorandum on which the receipts were reported as missing.

    5. a statement that all recovered receipts have been canceled by voiding; and

    6. a brief statement of the circumstances surrounding the recovery of the receipts.

  3. If the lost or stolen item is a specific part of Form 809, in addition to the items listed above, the following steps should be taken:

    IF the lost or stolen item is..... THEN the responsible employee must...
    Part 1 prepare Form 3244, Payment Posting Voucher in lieu of Part I. The serial number of the missing Form 809 must be submitted on the Form 3244. Also write in the remarks section a statement about the loss. Attach a copy of the memorandum report to notify of the lost or stolen receipt.
    Part 2 fill in the lost receipt number. Prepare a new Form 809 with the statement "Replacement Receipt No. _______" written across the top of all four copies. Issue the duplicate Part 2 to the taxpayer. Void the duplicate Parts 1, 3, and 4 and staple them together in reverse order.
    Parts 3 and 4 Note on the memorandum report that the payment was processed and the date it was processed.

5.4.1.22  (05-31-2000)
Recovery of Lost or Stolen Forms 809

  1. Areaoffice employees are responsible for preparing memorandum reports in quadruplicate when lost or stolen Form 809 receipts have been recovered. A copy will be submitted with the recovered receipts on Form "795A(CG)" . The area office will forward the original and two copies of the memorandum through managerial channels to the Field Territory Manager. The report should include:

    1. Name and post of duty of employee who reported the loss;

    2. Serial number of the recovered receipts;

    3. Date the receipts were recovered;

    4. A statement that all recovered receipts have been cancelled by voiding and

    5. Circumstances surrounding the recovery.

5.4.1.23  (05-31-2000)
Voiding Recovered Receipts

  1. Area office employees who recover receipts should write "VOID" on all four parts of each receipt.

    IF.... THEN.....
    A single receipt or the receipts are separated from the book. Write "VOID" on all four parts of Form 809. Staple the parts in reversed order. Write an explanation on the reverse of Part 1.
    An entire book Keep the book in order and staple the front cover. Attach the memorandum report to the front.

5.4.1.24  (05-31-2000)
Collateral Holdings

  1. The Case Processing Support function will submit collateral to the Area Office Manager/Liaison for safekeeping. Parts 2, 3, 4, and 5 of Form 2276, Collateral Deposit Record, will be received with the collateral.

  2. The Area Office Manager/Liaison will:

    1. receive the collateral from Case Processing Support in a sealed envelope with a signature across the label or seal of the envelope (refuse the envelope if the seal has been disturbed and request Case Processing Support to verify the contents, to reseal and to sign across the label or seal of the envelope,

    2. receive Parts 2, 3, 4, and 5 of Forms 2276 with the collateral,

    3. indicate receipt of collateral by completing Items 12 and 13 of Part 2, 3, 4, and 5 of Form 2276,

    4. note in Item 14, Remarks, of Part 2 of Form 2276 that collateral was received in a sealed envelope and contents were not verified upon receipt,

    5. return Parts 4 and 5 of Form 2276 to Case Processing Support,

    6. store collateral and Part 2 of Form 2276 in a container that meets requirements of IRM 1.16.2, Manager's Security Handbook, and file a photocopy of Part 2 in a suspense file pending verification of the next monthly Area Office Inventory Summary Report per IRM 5.4.1.28, and

    7. send Part 3 of Form 2276 in the Accounting Control Package to Service Center Accounting.

5.4.1.25  (05-31-2000)
Release of Collateral Upon Satisfaction of Agreement

  1. When conditions for releasing the collateral have been complied with, Case Processing Support will submit Part 4,6 and 7 of Form 2276 to the area office manager/liaison.

  2. The area office manager/liaison will:

    1. receive parts 4, 6 and 7 of Form 2276 from Case Processing Support,

    2. enter his or her name in Item 19 of Parts 4, 6 and 7 as the person releasing the collateral,

    3. return, in person, or by mail (registered, if the collateral is a negotiable item), Parts 4, 6 and 7 of Forms 2276 and the collateral to the Case Processing Support representative,

    4. note in Item 14, Part 2, of Form 2276, to whom collateral was released and the date, and

    5. file Part 2 of Form 2276 in the closed.

  3. After disposition of the collateral, Case Processing Support will return Parts 6 and 7 of Form 2276 to the area office manager/liaison.

  4. The area office manager/liaison will:

    1. receive Part 6 and 7 of Form 2276 from Case Processing Support,

    2. suspend Part 6 of Form 2276, pending verification of the next monthly Area Office Inventory Report per IRM 1.28 and

    3. forward Part 7 in the Accounting Control Package to the Service Center Accounting function.

5.4.1.26  (05-31-2000)
Disposition of Cashier, Treasurer or Certified Check Held as Collateral

  1. When a cashier, treasurer, or certified check has been submitted as collateral or to secure a bond agreement and the conditions are not complied with, the Case Processing Support will forward part 4, 5, 6 and 7 of Form 2276 to the area office manager/liaison.

  2. The area manager/liaison will:

    1. receive parts 4, 5, 6 and 7 of Form 2276 form Case Processing Support,

    2. enter his or her name in Item 19 of Parts 4, 5, 6 and 7 of Form 2276,

    3. release collateral and Parts 4, 5, 6 and 7 of Forms 2276 to the revenue officer in person or forward by registered mail and,

    4. note Item 14, Part 2, of Form 2276, to whom, how and the date the collateral was released.

  3. After disposition of the check, the revenue officer will return Parts 6 and 7 of Form 2276 to the area office manager/liaison.

  4. The area office manager/liaison will:

    1. receive Part 6 and 7 of Form 2276 from the revenue officer,

    2. associate Part 6 with Part 2 of Form 2276 in the closed file, and

    3. forward Part 7 in the Accounting Control Package to the Service Center Accounting function.

5.4.1.27  (05-31-2000)
Disposition of Bonds, Notes, Stocks, and Mortgages, etc. Held as Collateral

  1. When bonds, notes stocks, mortgages, etc. are involved and the conditions are not complied with, the Case Processing Support will forward Parts 4, 5, 6 and 7 of Form 2276 to the area office manager/liaison.

  2. The area manager/liaison will:

    1. receive parts 4, 5, 6 and 7 of Form 2276 from Case Processing Support,

    2. enter his or her name in Item 19 of Parts 4, 5, 6 and 7 as the person releasing the collateral,

    3. return, in person or by certified/registered mail Parts 4, 5, 6 and 7 with the collateral to the Case Processing Support representative and,

    4. note Item 14, Part 2, of Form 2276, to whom and the date the collateral was released.

  3. After disposition of the collateral, Case Processing Support will return Parts 6 and 7 of Form 2276 to the area office manager/liaison.

  4. The area office manager/liaison will:

    1. receive Part 6 and 7 of Form 2276 from Case Processing Support,

    2. associate Part 6 with Part 2 of Form 2276 in the closed file, and

    3. forward Part 7 of Form 2276 in the Accounting Control Package to the Service Center Accounting function.

5.4.1.28  (05-31-2000)
Responsibilities of Area Transferring Collateral

  1. If a Balance Due Account (BAL DUE) is transferred to another area, the related collateraI will also be transferred. Case Processing Support will complete Item 23 on Parts 4, 6 and 7 of Form 2276 by checking the "Other" block and inserting the notation: "BAL DUE transferred to Area Collateral" and forward all parts, with copy of memorandum attached to Part 6, to the area manager/liaison.

  2. The area manager/liaison will:

    1. receive Parts 4, 6 and 7 of Form 2276, with a copy of the revenue officer's memorandum attached to Part 6, from Case Processing Support;

    2. prepare Form 3210 addressed to the manager/liaison in the receiving area office;

    3. send the collateral, a copy of the revenue officer's memorandum and Form 3210 to the Case Processing Support in the receiving area by registered mail;

    4. note in Item 14 of Part 4 and 7 the date and area office to which collateral was transferred;

    5. return Part 4 of Form 2276 to Case Processing Support;

    6. attach a copy of the revenue officer's memorandum to part 6 of Form 2276 and associate part 6 with Part 2 in the closed file; and

    7. send Part 7 of Form 2276 in the Accounting Control Package to the Service Center Accounting function.

5.4.1.29  (05-31-2000)
Responsibility of Area Receiving Collateral

  1. Upon receipt of the collateral in the receiving area, the manager/liaison will:

    1. secure a serial number form Case Processing Support;

    2. prepare a new Form 2276 for control purposes;

    3. retain Part 2;

    4. send Part 5 to the revenue officer; and

    5. send Parts 2, 6 and 7 to Case Processing Support.

5.4.1.30  (05-31-2000)
Value Review, Verification and Confirmation of Collateral

  1. The Case Processing Support Manager will arrange for a value review and verification of all collateral held by the manager/liaison not less often than semi-annually using the Revenue Accounting and Control System Area Office Inventory Detail Report sent by the service center.

  2. The Case Processing Support representative will be solely be responsible for the value review of the collateral.

  3. At the same time of the value review, the Case Processing Support representative and the area manager/liaison jointly will:

    1. verify that items of collateral listed on Forms 2276 maintained in the Case Processing Support area are actually on hand. When received from Case Processing Support, Form 2276, will show the value of the collateral or will be noted "For Safekeeping" in Item 7(d);

    2. in the presence of the Case Processing Support manager or his or her delegate, check and count each piece of collateral to ensure complete agreement of items and amount with the data shown on Forms 2276,

    3. list each item, the amount and identifying information of collateral on a verification worksheet. Any receipts from Federal Reserve Banks for deposits of collateral by the area will be included in the inventory;

    4. adjust the Form 2276 if differences are discovered, after first determining the reason for the difference. Record reason for difference on verification sheet.

    5. seal the collateral items verified with those items listed on Form 2276 by affixing a label or seal, and sign across the label or seal and the envelope to prohibit opening of the envelope without disturbing the signature, and

    6. verify the contents of any previously sealed envelopes which are opened for examination of the collateral by officials other than designated verifiers or which were opened for partial release of the collateral. Reseal and sign across the label or seal and the envelope.

  4. A memorandum of confirmation will be prepared by the Case Processing Support representative. The Case Processing Support manager and area office manager/liaison will sign off and return to Case Processing Support representative for disposition, including returning a copy of the confirmation memorandum and the Inventory Detail Report (collateral account portion) to Case Processing Support for retention.

  5. If this review is not scheduled and completed timely, the area office manager/liaison should notify upper management.

5.4.1.31  (05-31-2000)
Collateral Confirmation

  1. In order to be assured that the area office record agrees with the service center records the manager/liaison will confirm