3.17.64. Accounting Control General Ledger Policies and Procedures

(1) This IRM describes the accounting procedures for the RRACS. It addresses the maintenance and responsibility of the general ledger accounts, specific accounting programs, reports and internal controls. These controls are necessary to comply with all administrative and legal requirements of the IRS, the Department of the Treasury and the Government Accountability Office (GAO).

(1) The authorities for this IRM include:

1. 31 USC (United States Code) Chapter 11, The Budget and Fiscal, Budget and Program Information

2. Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies

3. 31 USC 3512, Executive Agency Accounting and other Financial Reports and Plans

4. 44 USC 3309, Preservation of Claims of Government Until Settled in Government Accountability Office (GAO)

(1) This section provides responsibilities for:

1. CFO and Deputy CFO

2. Senior Associate CFO for Financial Management

3. Associate CFO for Revenue Financial Accounting

4. Revenue Accounting Operations Office

5. HQ Accounting

6. Enterprise Computing Center, Martinsburg (ECC-MTB)

7. Submission Processing Center

8. CFO RACS Units

(1) Program Reports: In accordance with Management Accountability Review regulations, managers are responsible for ensuring that internal controls are effective and efficient in day- to- day operations and safeguarded against waste, fraud and abuse.

(2) Program Effectiveness: Managers are responsible for conducting operational and management control reviews to identify weakness and mitigate known risks. Managers perform program or spot reviews for accuracy and completeness. Discrepancies identified must be discussed with the appropriate functional area for corrective action. At least one program review should be performed each quarter by the manager, lead or the accounting reports analyst.

(1) Federal Government Accounting Requirements, USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency and states that the head of each executive agency shall establish and maintain systems of accounting and internal control that provide:

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

2. Adequate financial information needed for the agency's management purposes.

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

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

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

(2) These systems must conform to the accounting principles, standards and related requirements, as prescribed by the Comptroller General of the U.S. Historically, these have been reflected in the Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies.

(3) The accounting system of an executive agency or any of its component parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize and simplify accounting systems in the federal government are exercised under a joint program sponsored by the Comptroller General, the Secretary of the Treasury and the Director of Office of Management and Budget (OMB). This program contemplates the full development of sound accounting within each executive agency as a working arm of management and in terms of financial information and control. It envisions an integrated pattern of accounting and financial reporting for the government that is responsive to executive and legislative needs.

(4) The established accounting and reporting principles, standards and basic procedures take into consideration the various areas of responsibility involved, the elimination of overlapping operations and paperwork and the broader application of efficient methods and techniques in accounting operations throughout the government. Integration of revenue accounting data with central accounts maintained by the Bureau of the Fiscal Service is accomplished primarily by the submission of monthly reports of deposit and classified collections and of disbursements from the refund appropriations.

(1) The following terms and definitions apply to this program:

1. Abatement -The reduction or elimination of an assessment.

2. Accounting - An established record of all transactions for returns and documents that are processed throughout IRS.

3. Account balance - The difference in dollars between the total debit and total credit of an account.

4. Account period - Time covered by financial statements, which can be for any length of time but is usually annual, quarterly or monthly. The annual financial statements may be on a calendar or fiscal year basis.

5. Agency Location Code (ALC) - Eight-digit Treasury identifier assigned by the Fiscal Service for Treasury reporting purposes. The first two digits identify the Treasury department, the third and fourth digits identify the IRS and the remaining four digits identify the IRS campus.

6. Assessment - Taxes assessed, penalties and interest charged to a taxpayer's account.

7. Assessment Statute Expiration Date (ASED) -The date the statutory period of time for assessing tax ends. The time frame for assessing tax is normally three years from the due date or three years from the date the return is filed, whichever is later. (IRC 6501)

8. Automated Non-Master File (ANMF) - A system of pre-ADP (Automated Data Processing) cases, overflow cases and those cases for which ADP processing is not available, such as new taxes enacted by Congress for which there is no provision in existing master-file systems.

9. Batch process - Computer processing of business transactions and preparation of financial reports in which processing tasks are scheduled in a logical order.

10. Business Event Type Code (BETC) - An 8- character code used in the Central Accounting Reporting System (CARS) system to indicate the type of activity being reported, such as payments, collections, investments, etc. This code must accompany the Treasury Account Symbol (TAS) and the dollar amounts to classify the transaction against the fund balance with Treasury.

11. Central Accounting Reporting System (CARS) - Address the central accounting and reporting functions and processes associated with budget execution, accountability and cash/other types of management asset. This includes the collection and dissemination of financial management and accounting information from and to federal program agencies. CARS was formerly known as Government Wide Accounting (GWA).

12. Collections Information Repository (CIR) - A collections reporting tool, supplying the latest information on deposits and detail of collections transactions to federal agencies. The system will allow financial transaction information from all collections systems and settlement mechanisms to be exchanged in a single system. CIR was previously named Transaction Reporting System (TRS) prior to January 2013

13. Classification -The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class application.

14. Collection Statute Expiration Date (CSED) -The date the statute expires for collection of tax, penalty or interest. The CSED is ten (10) years from the assessment date (23C date) of the posting of the original return (Transaction Code 150).

15. Custodial Detail Data Base (CDDB) - An enhancement to the Financial Management Information System created to track all individual payments that comprise a deposit ticket, process all posted remittance transactions and generate reconciliation reports to balance RRACS deposit totals to the CDDB deposit totals. It creates report schedules and completeness test reports to compare accumulated Master File total against RRACS totals. It has also been expanded to include refund transactions.

16. Customer Account Data Engine (CADE) -The cornerstone of the IRS modernization program. It is incrementally replacing the IRS tape-based Individual Master File (IMF) system as the system of record for taxpayer account and return data. CADE is being developed and implemented over a series of multiple releases. Taxpayer accounts are moved from the IMF to the modernized system based on a segmented approach whereby the simplest accounts are moved first (e.g,Form 1040-EZ accounts), followed by increasingly complex taxpayer accounts with each new phase. CADE was discontinued in June 2011.

17. Customer Account Data Engine 2 (CADE 2) - A centralized relational database. Beginning January 2012, the Individual Master File (IMF) will provide daily processing of taxpayer’s accounts.

18. Debit Voucher (DV) - SF 5515 - Summary document used by a bank to control returned dishonored checks or to make adjustments to deposit tickets.

19. Deposit Ticket (DT) - SF 215/OTCnet - Summary document issued by a financial institution for the purpose of summarizing and classifying collections received for a specific deposit date.

20. Disbursement accounts - Series of accounts that record monies disbursed as refunds of previously collected revenue or funds.

21. Document Locator Number (DLN) - A controlled number assigned to every return or document input through the Automated Data Processing (ADP) system. The DLN is used to control, identify and locate documents processed in the ADP system.

22. Enterprise Computing Center (ECC) -The computing site primarily responsible for maintenance of the Master File records for each taxpayer and for the electronic processing of related inputs and outputs.

23. Erroneous Refund Statute Expiration Date (ERSED) - Expires two years from the date of the refund (transaction code (TC) 846/840) if caused by the IRS or five years from the date of the refund (TC 846/840) when it is proven that the refund was issued due to fraud or misrepresentation of material fact by the taxpayer.

24. Fiscal year (FY) - Any 12- month accounting period used by an economic entity. For reporting purposes, a fiscal year extends from October 1 through September 30.

25. Fiscal year end processing - The process by which fiscal year- end reports are generated after verifying September month-end reports and all nominal account balances are closed out.

26. General ledger (GL) - A database, which contains all the government agency accounts. Each account is maintained separately.

27. Government On-line Accounting Link System II (GOALS II)- The system that allows BFS to receive agency accounting data and forward it to various systems within BFS for final processing and to distribute agency accounting reports.

28. Journal -The source for recording all debits and credits into the general ledger account.

29. Month end closing - When all transactions for an accounting month have been input, procedures must be followed to close out the month, generate reports and set up the database for a new month's transactions. Due to the initiative set forth by the Secretary of the Treasury, these procedures should be started on the second workday after the close of the accounting month.

30. Nominal account - Accounts showing the accumulation of revenue and expenses for only one accounting period. Nominal accounts are systemically transferred into Account 9998 at the end of each fiscal year leaving this account at zero.

31. Non-Tax receivables - The net total of non-tax monies posted on Master File that have an outstanding module balance.

32. Normal balance - The usual balance of an account, debit or credit.

33. Opening balances - Beginning balances for all real accounts at the start of the fiscal year.

34. Over the Counter Network (OTCnet) - A system designed to consolidate the functionality of Paper Check Conversion-Over the Counter (PCC-OTC) and Treasury General Account Deposit Reporting Network (TGAnet), providing a one system solution for agency over-the-counter deposit activity.

35. Paper Check Conversion (PCC) - Converts paper checks into electronic debits.

36. Real account -A permanent account whose balances are not zeroed out at the end of an accounting period but are carried over to the next accounting period.

37. Receipt account - Series of accounts used to record the receipt of and the accountability for monies received for deposit into the Treasury. The accounts are classified by type of receipt received and represented by the Treasury Account Symbol (TAS).

38. Reclassification - Adjustments made to correct classifications of revenue.

39. Reconciliation - The act of ensuring that the total of the monetary balance of the appropriate general ledger account agrees with the balance in the related subsidiary account. All variances are identified.

40. Redesigned Revenue Accounting Control System (RRACS) - The fully automated system used to provide accounting control for all revenue accounting transactions. The database, located at ECC-Detroit, consists of general ledger account, plus a variety of internal records used for balancing and reporting.

41. Refund Statute Expiration Date (RSED) - The RSED is generally three years from the Return Due Date (RDD) for prepaid credits if a return was filed, or two years from the payment date for other payments, whichever is later.

42. Revenue receipts - Collection of taxes, penalties, interest and costs assessed or assessable against taxpayers, and payments on accepted Offer In Compromise, are classified as revenue receipts. Amounts received as payment of court fines, court costs, forfeitures, penalties incident to or imposed for, violation of applicable laws from the redemption of property acquired by the government, and receipts from consummated sales of acquired property, will also be classified for deposit as revenue receipts.

43. Scorecard -Used to track the timely submission of the RRACS reports to CFO RACS analyst and Submission Processing (Form 3997 only) Headquarters (CFO HQ), to score the accuracy of some of the reports and reconciliations and rate the timeliness of resolving outstanding accounting issues.

44. Subsidiary account - Subsidiary accounts provide necessary details in support of certain general ledger accounts.

45. Tax class - The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class of application.

46. Tax period - A six-digit number which represents the end of the tax liability year for a return; and is designated by the year and month.

47. Trace ID - The CDDB mechanism that identifies each deposit ticket and its corresponding payments is a 20-digit number made from 14 characters related to the corresponding deposit ticket and 6 characters representing the Detail Payment Transaction Record for an individual payment.

48. Transaction type - Descriptive information as to the kind of transaction being processed on a specific window or batch process.

49. Treasury Account Symbol (TAS) - Money collected under the accountability of the campus director is entered into one of the receipt accounts. The receipt accounts record the receipt of money to Treasury for the current fiscal year.

50. Treasury Offset Program (TOP) - Treasury's Bureau of the Fiscal Service (Fiscal Service) holds the responsibility for administering tax refund offsets to outstanding child support or state and federal agency debts.

51. Trial balance - A listing of accounts in the general ledger with their debit or credit balances in respective columns.

52. 23C Date - The date a liability is assessed.

53. Window - Specific screens within the RRACS system, used to journal various types of transactions.

54. Write-off - The amount of assessments that the entity still has statutory authority to collect at the end of the period but has no future collection potential and are therefore defined as write-offs.

(1) The following acronyms apply to this program:

(1) The following provide additional instructions.

1. IRM 3.0.167, Losses and Shortages

2. IRM 3.8.44, Campus Deposit Activity

3. IRM 38.45, Manual Deposit Process

4. IRM 3.8.47, Manual Deposit Process for Field Offices

5. IRM 3.10.5, Batch/Block Tracking System (BBTS)

6. IRM 3.10.73, Batching and Numbering

7. IRM 3.17.5, Hard-core Payment Tracers

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

9. IRM 3.17.15, Accounting Reports Analyst - Responsibilities

10. IRM 3.17.21, Credit and Account Transfers

11. IRM 3.17.30, SC Data Controls

12. IRM 3.17.41, Accounting and Operating Reports

13. IRM 3.17.46, Automated Non-Master File (Accounting)

14. IRM 3.17.50, Submission Processing RRACS Procedures

15. IRM 3.17.63, Redesigned Revenue Accounting Control System

16. IRM 3.17.79, Accounting Refund Transactions

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

18. IRM 3.17.220, Excess Collections File

19. IRM 3.17.221, Enterprise Computing Center Data Controls

20. IRM 3.17.243, Miscellaneous Accounting

21. IRM 3.17.244, Manual Assessments

22. IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

23. IRM 21.4.5, Erroneous Refunds

(1) The following forms are commonly used in Revenue Accounting and will be referenced throughout this IRM.

(1) The following accounting control reports can be generated on demand.

(2) Online journal research is completed as necessary.

(3) RRACS reports must be retired to the FRC, as indicated in Document 12990, Records Control Schedules.

(1) The following is a chart of Submission Processing accounts that will be referenced throughout this IRM.

(1) The following are TAS referenced throughout this IRM.

(1) The following ALCs are used by the campuses for deposit and disbursement activities.

(1) GAO audits of the tax refund transactions of the Service will usually be conducted where the operations and the accounting records are maintained. This is subject to changes based on field conditions, staffing availability, and other conditions otherwise unforeseen by management at the time of an audit.

(2) Copies of CARS reconciliation, related original refund and check cancellation voucher schedules with any required supporting documents plus other documents, such as the ALC Payment Detail listing, are to be retained in the supporting files in accordance with 44 USC. 3309.

(3) In accounting period order, separate files will be maintained of the refund disbursement and check cancellation schedules and other documents relating to the monthly CARS reconciliation as follows:

1. Original SF 1166 SPS (Voucher and Schedule of Payments)

2. Original SF 1098 (Schedule of Cancelled or Undelivered Checks), SF 1184 (Unavailable Check Cancellation), (or the Control-D file, RPA4140 and RPA4240, if originals are not provided) SF 1081(Voucher and Schedule of Withdraws and Credits) or BFS 3813 (Reversal of Credit)

3. Adjustment documents or explanatory memoranda relating to the correction of errors in a previously prepared CARS reconciliation.

(4) These additional records will be made available:

1. BMF and IMF Recaps of Assessments, Abatements and Other Post-Journalized Transactions

2. Form 8485 (Assessment Adjustment Case Record)

3. Form 2285(Concurrent Determination of Deficiencies)

(5) Form 8485 and Form 2285 will be made available for restricted-interest cases only and taxpayer names must be blocked out.

(6) On request by the GAO auditors, specific transcripts will be produced for individual cases selected for verification of refund interest computation. All PII as determined by policy not to be released must be redacted prior to delivery.

(7) All unaudited records of refund transactions will be retained either in the campus files or the FRC for audit by GAO. Records of refund transactions which have been audited by GAO may be transmitted to the FRC or otherwise retired or given another disposition authorized by their applicable record control schedule.

(8) Fax copies used in lieu of originals must be photocopied for the GAO file.

(1) Certain document preparation procedures must be performed prior to input on the RRACS system. For certain windows, a volume of source documents is used for a single input. On other windows, two or more source documents must be balanced against each other. Several windows are input directly from the source documents.

(2) Form 8166 has been developed for the purpose of consolidating volume source documents for a single input or for reconciling source documents when a combination of documents is used as input.

(3) Assign a number to the Form 8166. Maintain logbooks for these numbers. For individual windows that specify Form 8166, use the reconciliation sheet number as the Doc-Id.

(4) Use Form 8167 as a continuation sheet to Form 8166 when more space is necessary, using the same date and number.

(5) The RRACS system displays the journal numbers of each transaction when the posting to the database has been completed. These journal numbers must be used to cross-reference documents. When the reconciliation sheet is used, the journal number(s) must be recorded on the reconciliation sheet. The reconciliation sheet number may also be used as a cross-reference on the source documents to expedite processing, as long as the Form 8166 is stamped with the journal number after input to RRACS.

(6) There is a maximum of 75 source journals per posting number. This includes the reclassification and application posting necessary for a complete journal.

(1) RRACS must never contain any taxpayer information, including TINs or any other identifying information, for Doc-Ids/case numbers, etc.

(2) For all inventory accounts, never use a DBA reversal window to reverse any action or a modification window to correct an open case. It is necessary to close and then reopen the case.

(3) For all inventory accounts open over 30 days, a history sheet to document actions taken should be maintained.

(1) A series of input windows is provided in RRACS. Separate windows are provided for the various types of transactions. The first part of this table is for "batch" journals generated from other systems. The second part of this table is for journals from "manual" input.

(1) Error codes are displayed on the window when an attempt is made to post a transaction which contains an error, including duplicates, journal control already exists, etc.

(1) Whenever a journal entry error is discovered, supervisory authorization is required for the correcting entry to the general ledger account.

(2) The authorization must be documented and retained by the manager. The documentation should include the original journal number, the reason for the reversal or journal correction request and the managerial approval.

(3) The incorrect entry should be reversed by the DBA, then re-input by the technician who made the original incorrect entry (when possible). A journal correction request will be assigned to a technician. On the reversal journal, the DBA must include the original journal number and an explanation in the message text. On the correction journal, the technician must include the original journal number and the reversal journal number, along with an explanation in the message text. To ensure adequate audit trail information, the technician must also notate (pen and ink) the reversal journal number and the correction journal number on the Daily Posting Summary (DPS) (RRACS Report - 001) next to the original journal number.

(4) Maintain a log and include all correction request, modifications and reversal journals for proper audit trail.

(1) The following are the accounts associated with account transfers.

(1) RACS will receive Form 514-B, supporting documentation and Form 813.

(2) Form 514-B must be processed in accordance with IRM 3.17.21, Credit and Account Transfers prior to input to RRACS. The Form 514-B or ANMF Transcript is the source document for RRACS input.

(3) Form 514-B will be input individually using the Form 514-B number as the Doc-Id. Each transfer out must contain the NMF status or other file from which the account is being transferred.

(4) Journalize the Form 514-B.

1. Using the RRACS 458 window, which can be found under the Accounting Application Main Menu under Account Transfers, input the amount.

2. The journal entry will be a debit to account 1400 (Tax Accounts Transferred Out) and a credit to either account 4420 (NMF) or one of the NMF status accounts.

3. The journal number must be stamped or written on the Form 514-B and the supporting documentation.

(5) Mail copy of Form 514-B and supporting documentation to receiving campus.

(1) RACS will receive Form 514-B and supporting documentation from initiating campus. Entries will be made from the file copy. All transfers-in are assigned a DLN.

(2) Form 514-B will be input individually using the Form 514-B number as the Doc-Id.

(3) Journalize the Form 514-B,

1. Using the RRACS 460 window, which can be found under the Accounting Application Main Menu under Account Transfers, input the amount.

2. The journal entry will be a debit to account 4420 (NMF) and a credit to account 6200 (Taxpayer Account Transferred).

3. The journal number must be stamped or written on the Form 514-B and the supporting documentation.

4. Send Form 813 to the Data Control Function for input to SCCF.

(4) Mail confirmation copy of Form 514-B back to originating campus.

(5) RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF. After successful input to ANMF, the journal automatically posts to the RRACS system as a 141 journal. This journal will automatically post to SCCF, closing the DLN.

(1) Originating campus will receive the confirmation copy of Form 514-B back from receiving campus for confirmation on RRACS.

(2) Confirm Form 514-B using the RRACS 465 window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "transfer out - dr (514-B)", input the amount.

(3) The journal entry will be a debit to account 6200 (Taxpayer Account Transferred) and a credit to account 1400 (Tax Account Transferred Out).

1. The journal number must be stamped or written on the Form 514-B.

(4) File and distribute accordingly.

(1) Each site must establish procedures for after-hours assessments. After-hours assessments include such items as imminent statutes, jeopardy and terminations that cannot be legally assessed during regular hours of the following workday. At a minimum, these procedures should include but are not limited to, the following:

1. Ensure there is an assessment officer available at all times.

2. Ensure appointments are current for after-hours assessment officers.

3. Ensure that after-hours assessment officers are adequately trained to prepare a manual Form 23C, Certificate of Assessment.

4. Provide all necessary forms and instructions for preparing a Form 23C.

5. Have a system in place to ensure that Form 23C is given to RACS for the journal entry on the next business day.

6. Provide field office personnel with a list of after-hours assessment officers. Maintain an updated contact phone tree for assessment officers, and ensure procedures are in place to contact the sites by jurisdiction.

(1) Manual assessments are prepared expeditiously to protect an assessment from being barred by the expiration of the period of limitation or to expedite the collection process. They can be either MF or NMF.

(2) The accounting function will receive a Form 2859, Request for Quick or Prompt Assessment, for processing. See IRM 3.17.46, Automated Non-Master File Accounting and IRM 3.17.244, Manual Assessments, for further processing procedures.

(3) Journal entry information will come from the back of Form 813 for all MF assessments and NMF daily assessments. Each Form 813 will be a separate input document. It is essential that all necessary information for input be on or associated with, the Form 813.

(4) Journal entry of assessments can be completed on a variety of RRACS windows depending upon the type of assessment (regular, quick, prompt or jeopardy), whether it is current or a deficiency, the tax class, and whether it is tax, penalty or interest. The windows that can be used range from 610 through 686 and 810 through 886. For further instructions on determining which window to use, refer to IRM 3.17.50.8.1, Submission Processing RRACS Procedures.

(1) This series of accounts records the assessment of tax liabilities and the liabilities for fees, penalties or costs for services rendered. Also included in this series of accounts are settlements of accounts other than by payment. This series of accounts is nominal and will be closed to the revenue clearance account at the end of the accounting year.

(1) This list identifies all unprocessed assessment certificates and must be reviewed online daily to determine which assessment certificates must be processed.

(2) To ascertain the correctness of the data entered into RRACS, utilize this online information to balance the assessments to the source documents before the Summary Record of Assessment is generated.

(3) The assessment date and assessment type will be displayed for each current record that has not yet been generated. To review these assessments, select Assessment main menu and then select the Review option.

(4) Review the information and take the necessary action to generate any summary records where the assessment date equals the current date.

(5) The summary record provides details of the assessment data by type of tax and if the assessment was current or deficiency. Assessments are broken down into five types: Regular (R), Jeopardy (J), Quick (Q), Prompt (P) and Termination (T). Jeopardy assessments record the principal amounts against individual taxpayers. The following data can be reviewed online for each assessment type and assessment date:

1. Tax class

2. Items related to the tax class

3. Tax amount

4. Penalty amount

5. Interest amount

6. Identification as current or deficiency

(6) The total items, tax, penalty and interest is summarized for total current assessments and total deficiency assessments.

(7) The current and deficiency item and amount fields related to each tax class are added together under tax class summary.

(8) If the assessment is a Jeopardy, the data related to the principal taxpayers and amounts are required. The number of principal taxpayers will be the sum of current and deficiency item counts.

(9) The audit trail is printed for each summary record. This includes the Doc-Id, DLN or Form 8166, RRACS Input Reconciliation, recap number in the DLN column and the account date.

1. To generate the report, select Review from the Assessment main menu, then select the Assessment option, desired assessment type and assessment date. Select Review again for the report to show.

2. The report must be signed by the assessment officer on the date the assessment is made. The certification statement is included in the printed report. At least one person at each campus must be assigned the responsibility of reviewing all certificates for timely entry of the assessment officer's signature and date. The responsible employee must initial the certificate after validation. This review must be completed daily.

Note: An electronic signature (reflecting authorizing official’s SEID) or original signature will be permitted.

Note: Daily print the Form 2162 before end of day to verify all certificates have been signed for that day.

Note: The print name line, signature and date must be filled out.

(10) Daily, ECC will electronically transmit the assessment data to ECC-MTB from the daily computer-generated SC Recap.

(11) Regular and Quick assessments may be requested through RRACS weekly. Quick assessments should be requested daily, if a specific and immediate assessment date is requested or required. Prompt assessments should be requested daily. Jeopardy and Termination assessments should be requested immediately after input to the assessment windows. Jeopardy assessment certificates generally contain assessments for only one entity.

(12) When RRACS is unavailable, all campuses must use Form 23C, Manual Summary Record of Assessment, under Forms and Publications on the Internal Revenue Intranet or the excel version provided by HQ.

1. Enter the detail data by type, tax class, the total amounts of current assessments of tax, penalty, and interest.

2. Enter detail data by tax class for deficiency tax, penalty, interest and item count.

3. Total the entries on each certificate horizontally and vertically.

4. The date of the certification and signature of the assessment officer are entered where indicated.

5. List all audit trail information in Section 6 of Form 23C. This can consist of DLN, Form 8166 numbers, recap information, etc.

6. The assessment data must be entered into RRACS as soon as possible.

(1) This report represents a consolidation of all assessment certificates prepared each month. It provides a breakdown by tax classes for current and deficiency assessments. It also provides an audit trail of assessment certificates and principal taxpayers included in the report. All assessment certificates that were posted for the month will be listed.

(2) The report will be produced during End of Month (EOM) processing but may be generated separately for research or statistical purposes. To generate the report, select the RRACS Report main menu and Form 2162 from the Month End sub-menu.

(1) For each tax class under current assessments print the related items, tax amount, penalty amount and interest amount related to general ledger accounts 6110 through 6182, identified as current.

(2) Compute total current assessments by adding current items from all tax classes combined, current tax from all tax classes combined, current penalty from all tax classes combined and current interest from all tax classes combined.

(3) Use the same methodology for total deficiency assessments as above.

(4) Print offshore oil data items and penalty related to General Ledger account 6320, Offshore Oil Account.

(5) Assessment Summary - Current Month.

1. For each tax class compute the combined totals of current and deficiency items and amounts for tax, penalty and interest.

2. Compute total regular assessments by combining all the current item fields (for current and deficiency) for all tax classes, except offshore oil spills. Combine current amount fields for current and deficiency tax, penalty and interest for current and deficiency, for all tax classes except offshore oil spills.

3. Print offshore oil spills data for current oil spill items and penalty amounts.

4. Compute total monthly assessments by adding oil spill items and penalty amounts to total items and amounts from (6)(b).

(6) Assessment Summary - Year-to-date.

1. Withheld individual income and FICA reports the cumulative item count and total amount.

2. Individual income-other reports the cumulative item count and total amount.

3. Corporate and excess profits report the cumulative item count and total amount.

4. Excise reports the cumulative item count and total amount.

5. Estate and Gift reports the cumulative item count and total amount.

6. Tax on carriers reports the cumulative item count and total amount.

7. Federal unemployment tax reports the cumulative item count and total amount.

8. Total yearly assessments report the sum of cumulative item counts and amounts from all tax classes.

9. Offshore oil spills report the cumulative item count and penalty amount.

(7) Audit Trail.

1. Assessment certificates list each certificate number issued for the current month. This list contains the date and sequence number and is listed in sequence number order.

2. Principal taxpayers list the item count, principal tax amount and assessment date for each Jeopardy assessment reported in the current month.

(8) For each tax class under current assessments, print the related cumulative items, tax, penalty and interest amounts.

(9) Compute total cum assessments as follows:

1. Items include the sum of all cumulative items from all tax classes, with exception of oil spills.

2. Tax includes the sum of all cumulative tax amounts from all tax classes.

3. Penalty includes the sum of all cumulative penalty amounts from all tax classes, with exception of oil spills.

4. Interest includes the sum of all cumulative interest amounts from all tax classes.

(10) Use the same methodology for total deficiency assessments as above.

(11) Print offshore oil data cumulative items and cumulative penalty amounts.

(12) Assessment Summary - Fiscal year combines the cumulative deficiency and non-deficiency items and tax, penalty and interest amounts for and by each tax class.

1. The total of the assessment summary-fiscal year is summarized.

2. Offshore oil spills items and cum penalty amounts are summarized.

3. Total fiscal year assessments are calculated. Deficiency and non-deficiency cumulative item counts for all tax classes, including oil spills, are added together. Deficiency and non-deficiency cumulative tax, penalty and interest cumulative amounts, including oil spills, are added together.

(13) Principal tax included in this report combines the principal deficiency and non-deficiency cumulative items and tax amounts.

(1) Use the following procedures for correcting errors on the certificate:

1. When a journal error is discovered prior to generating the certificate, the erroneous journal must be reversed by the DBA and re-input.

2. When a journal error is discovered after the generation of the certificate but on or prior to the 23C date (if signed or not), reverse the 23C journal, and then reverse the original journal. Repost the assessment correctly and generate a new certificate.

3. When a journal error is discovered after the 23C date, make sure the statute date has not expired. On the current or future 23C date, post the reverse of the original journal. Then post the assessment correctly. The 23C certificate cannot be reversed after the 23C date.

   Note: In all instances, the original posting number should be annotated in the message text of the re-input journal, for audit trail purposes.

(1) A disclosure specialist will email or fax a 23C request to the Accounting Planning and Analysis and the accounting contact.

(2) Accounting will perform the research and request the documents from FRC (if applicable).

(3) Accounting will email or fax the requested 23C certificates to the disclosure specialist no more than 10 business days from the receipt of the request.

(4) The P&A Accounting analyst will monitor this request to ensure the timely response to the disclosure specialist.

(1) In the event of a furlough or shutdown, the following procedures should be followed to ensure the 23C assessment certificates are signed in a timely manner.

1. If the “normal” assessment officer (accounting operation manager) is signing the 23C certificates on a furlough/shutdown, the workday prior to the furlough/shutdown the RACS Team will balance, post and print the 23C certificates from RRACS. Prepare and give the package to the accounting operation manager the workday prior to the furlough (23C) day. The assessment officer will sign, date and record the clock time on the furlough day and return the signed 23C certificates to the RACS team on the next business day.

2. If the director, SP or their appointee, will be the assessment officer and is signing the 23C certificates on a furlough/shutdown, the workday prior to the furlough/shutdown the RACS Team would balance, post and print the 23C certificates from RRACS. Prepare and give the package to the accounting operation manager for review. Once the accounting operation manager has reviewed the certificates for errors, they should initial only (do not sign) and return to the RACS manager. RACS manager will ensure ALL 23C certificates are scanned and emailed to the proper assessment officer for signature no later than 3:00 ET on the day prior to the furlough day. The email to the assessment officer will include the kind and number of certificates to be signed. Request a READ receipt on your email. The assessment officer will print the scanned copies of all 23C certificates and sign, date and record the clock time on each certificate. The assessment officer will scan and email the signed 23C certificates back to the originator. On the next business day, the RACS team will print the scanned signed 23C certificates and process as usual.

   Note: In the event the director, SP or his designee is signing the assessments, the campus will be given the name of the assessment officer in advance who will be signing for the campus.

(2) In the event of a disaster impacting a specific campus, the following procedures should be followed to ensure the 23C assessment certificates are signed in a timely manner.

1. The affected campus assessment officer will contact the CFO RACS analyst. CFO RACS analyst will contact the alternate site, the alternate site will log into the campus’s RRACS system to balance and post and print the 23C certificates for the day. Completed certificate will be forwarded to the signing officer or their designee. Once signed, and the campus is available, CFO RACS will scan and email the SIGNED 23C certificates to the campus.

2. For a manual assessment, sign into the AMA system and generate any Form 813’s for that day, if unable contact the CFO RACS analyst for the Form 813. Prepare paper 23C and have the 23C signed, dated and record the clock time. Once signed, and the campus is available, CFO RACS will scan and email the SIGNED 23C certificates to the campus.

3. The following backup will be used by CFO RACS to balance:
   • Service Center Recap (CFO RACS has access to obtain the report)
   • Form(s) 813, Document Register from AMA – will be printed by CFO RACS.
   • Kansas City SPC Only – Form(s) 813 for ANMF. Since there is no way to obtain the backup for the ANMF assessments prior to the signing of the 23C certificate, the backup for any ANMF assessment on the 23C certificate must be provided to CFO RACS as soon as Kansas City SPC is able.

   Note: Due to the inability to obtain the backup for any ANMF assessments prior to signing the 23C certificate, it should be signed without reviewing the ANMF backup. Once the ANMF backup is available, CFO RACS will review the supporting documentation. If any errors are found on the 23C certificate, CFO RACS will notify KCSC to make the necessary correction(s).

(1) RACS technician will make 2 copies of each holiday 23 certificate, one for the operation manager to take home and one for the department manager to take home.

(2) RACS technician will place a note on each 23C certificate reminding the assessment officer of the date for signature and give to department manager.

(3) The accounting operation manager and/or department manager will review and verify that all 23C certificates carrying the holiday 23C date are present.

(4) On the day of the 23C signature, (e.g., the holiday), the operation manager will sign and date the 23 certificates and call the department manager to record the time and date. If the department manager does not receive a call by 3:00 PM local time, the department manager will sign the 23C certificates. The department manager will call the operation manager to record the time and date.

(5) Upon return to the office, the operation manager or department manager that did not sign the 23C certificates will notate the date and time of assessment officer signature and initial and date using current date for verification on the 23C certificate. Example. Signed 7/4/14 12:00 PM verified DM 7/5/14.

(6) Return signed 23C certificates to RACS technician for further normal processing.

(1) The following are the accounts associated with NMF.

(1) There are two screens on ANMF designed for RACS use only:

1. The Form 813 Block Control screen - the major control for all items entered in ANMF.

2. The update journalized RRACS Recap screen - used to record all journalized NMF recaps generated from ANMF and the RRACS journal number.

(2) All blocks of documents that are either pre-journalized or post-journalized will be input to the ANMF Form 813 Block Control screen. The only exceptions are entity changes, non-remit NMF extensions of time to file and transfers-in and old accounts (ULC's). See IRM 3.17.46, Automated Non-Master File Accounting for entry information. The listings generated through ANMF associated with input through the two screens above are:

1. NMF block listing

2. NMF unprocessed block list

3. Report of blocks-out-of-balance

4. NMF error register

5. Recap of journalized RRACS summaries

(1) Daily assessments are made to protect the assessment from being barred by the statute of limitations or to expedite the collection process. The RACS function will receive the Form 2859, in most cases via a fax from a revenue officer.

(2) For Jeopardy/Termination assessments only, a separate Form 813 and DLN is prepared. Multiple assessments against the same taxpayer can be included on the same Form 813. In some instances assessments may be telephoned to the site for immediate assessment. Phone requests must furnish the following minimum information:

1. Affirmative statement that the area director has approved Form 2644, Recommendation for Jeopardy/Termination Assessment

2. Name, address and TIN

3. Type of tax and taxable period

4. Amount of tax, interest and all applicable penalties to be assessed

5. Amounts of payment, if any, and balance due

6. Types of assessment - Quick, Prompt, Jeopardy or Termination

7. Appropriate abstract number

8. Transaction codes

(3) The RACS function will assign a DLN, prepare Form 813, journalize assessments through RRACS, enter the Form 813 information into ANMF system using the Form 813 Block Control screen and stamp Form 813 with the journal number and the 23C date. The account period in RRACS for the assessment should agree with the 23C date.

Example: July 1 assessment date should be journalized in July account period. ANMF processes assessments using current month while RRACS journals according to the 23C date. This causes reconciling items between the ANMF system and RRACS. RACS should provide a copy of Form 8166 or Form 813, showing the posting account period to NMF for balancing purposes.

(4) The journal entry of NMF daily assessments can be completed on a variety of RRACS windows depending upon the type of assessment (quick, prompt, jeopardy or termination), whether it is current or a deficiency, the tax class and whether it is tax, penalty or interest. The windows that can be used range from 610 through 686. For further instructions on determining which window to use, see IRM 3.17.50.8.1, Submission Processing RRACS Procedures.

(5) Summary Record of Assessment will be signed and dated by the assessment officer. The requesting office will be informed of the date of signature (23C date) and the DLN of the assessment.

(6) RACS will forward the Form 813 and the related documents to the NMF function for input to ANMF through the original assessment - daily screen.

(1) If the statute of limitations is not imminent or no specific immediate assessment date is requested or required, assessments will be made as a weekly assessment. Recaps with a 23C date, six days or fewer into the new month, will be input as prior month.

(2) RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and include the 23C date on Form 813.

(3) RACS will forward the Form 813 and the related assessment documents, to NMF using the NMF block list as the transmittal.

(4) After the NMF batch has been journalized, journal number 142, RACS will stamp the Form 813 with the journal number. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(1) IRC 7804(c) provides for assessments to be made against officers and employees of the IRS who either embezzle or fail to properly handle and account for money received in connection with the internal revenue laws. These assessments will be addressed under NMF procedures.

(2) IRM 3.0.167, Losses and Shortages, contains more information regarding 7804(c) assessments.

(3) Prior to NMF assessment, the embezzled amount will have been journaled to account 7610 and a letter of notice and demand sent.

(4) If payment is not received within 30 days of the notice, a copy of the letter of notice and demand will be forwarded to RACS for prejournaling the assessment from the responsible accounting campus maintaining account 7610. The letters will be used as the source document.

(5) Journal entry of assessments can be completed on a variety of RRACS windows depending upon the type of assessment (regular, quick, prompt or jeopardy), whether it is current or a deficiency, the tax class and whether it is tax, penalty or interest. The windows that can be used range from 610 through 686. For further instructions on determining which window to use, refer to IRM 3.17.50.8.1, Submission Processing RRACS Procedures.

(6) RACS will input the Form 813 information into the ANMF Block Control screen and forward the Form 813 and assessment document(s) to NMF for further processing.

(7) This journal will be part of the daily 23C certificate.

(1) Form 2424, Account Adjustment Voucher and Form 3809, Miscellaneous Adjustment Voucher, with related Form 813 are received for manual transfers. Transfers can be made between BMF Account 4120, IMF Account 4220 and NMF Account 4420. When transfers are made through IDRS, the recap from IDRS will be treated as a Form 2424 or Form 3809, as applicable. Separate transfers into like batches, such as IMF to NMF, BMF to NMF or NMF to IMF, etc.

1. Review each Form 2424/3809 for completeness. For the NMF side, ensure an ANMF transcript is attached and a Trace ID is present.

   Note: All Forms 2424 prepared by accounting must have a manager's signature.

2. All forms in one DLN block should balance to the Form 813.

3. Prepare Form 8166 for journal entry. Form 8166 should include, at a minimum, DLN and money amount.

(2) Journalize the Form 2424 or Form 3809.

1. Using the RRACS 400 window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications, input the total amount.

2. The journal entry will be a debit to either account 4120 (BMF), 4220 (IMF) or 4420 (NMF) and a credit to either account 4120 (BMF), 4220 (IMF) or 4420 (NMF) depending on the documents.

(3) The journal number must be stamped or written on all supporting documentation.

1. Send Form 813 to the Data Control Function for input to SCCF.

2. Forward Form 813, Part 1 and documents for MF to Batching for processing.

3. RACS will input the Form 813 information of the NMF documents into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal and automatic to SCCF, closing the DLN.

4. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(4) If a manual journal entry is needed, NMF will route the recap to RRACS for input.

1. Journalize the NMF recap using the RRACS 400 window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications.

2. The journal entry will be a debit to either account 4420 (NMF), Account 1321,1322, 1324, 1360, 1371, 1389 or 1830 and a credit to either account 4420 (NMF), account 1321,1322, 1324, 1360, 1371, 1389 or 1830 depending on the recap.

3. Reclassify, if necessary, using a 250 window.

(5) RACS will input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(1) RACS will receive various posting documents with a Form 813. Ensure first a journal entry has been completed.

(2) RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal and automatic to SCCF, closing the DLN.

(3) RACS will then input the 141 journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(4) If manual journal entry is needed, NMF will route the recap to RACS for input.

(5) Journalize the NMF recap using the RRACS 400 window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications.

(6) Depending on the type of document, the journal entry will be as follows :

1. Debit document - debit either account 1321,1322, 1324, 1360, 1371, 1389 or 1830 and credit account 4420, NMF.

2. Credit document - credit either account 1321,1322, 1324, 1360, 1371, 1389 or 1830 and debit account 4420, NMF.

3. Transcribe or stamp journal identification number on related documents.

4. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

5. Distribute documents accordingly.

(7) Debits/Credits from NMF unpostables account 4430 will be processed using normal procedures.

1. RACS will receive various posting documents with a Form 813. Ensure first a journal entry has been completed and documents have been distributed accordingly.

2. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal.

3. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(1) RACS will receive scheduled Form 1331 or Form 1331-B with Form 813 and Form 2188.

(2) Input Form 813 data to ANMF Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal as a debit to account 4440 (Assessment and Abatement Suspense) and a credit to an NMF Status.

(3) If a manual journal entry is needed, use a 400 window under Accounting Applications.

(4) Transcribe or stamp journal identification number on related Form 1331, NMF recap or Form 8166 for audit trail.

(5) RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(6) Transfers from Manual Assessment, Transit account 1600 may be required. The unpaid balance of all manual assessments is initially established in account 1600.

1. Input Form 813 data to ANMF Form 813 Block Control screen and route the NMF documents to the NMF function for input to ANMF system. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal.

2. Transcribe or stamp journal identification number on source document for audit trail.

3. RACS will then input the journal number to ANMF using the UPDATE Journal screen.

(1) Journalize transfer of NMF abatement credits to the MF suspense accounts. Form 2188 occasionally have Form 2424 or Form 3809 attached for transfer of the abatement credits to a MF account.

(1) NMF accounts can be written off systemically or manually if the accounts meet certain criteria.

1. Small credits (less than $1.00) - posts with TC 607.

2. Small debits (less than $5.00) - posts with TC 606.

3. Expired Collection Statute accounts except account 1371 and account 1389 are systemically written off to account 6600.

(2) Systemically written off accounts are completed weekly and the journal will be automatic to the RRACS system with a 141 journal.

1. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(3) For manually written off accounts, RACS will receive a posting document (e.g., Form 3177, Form 53, Form 5147)

1. RACS will input the Form 813 information into ANMF using the Form 813 Block Control screen and route the documents to the NMF function for input to ANMF. After successful input to ANMF, the journal will be automatic to the RRACS system with a 141 journal.

2. RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(4) If a manual journal entry is needed NMF will route the recap to RACS for input.

(5) Journalize the NMF recap using the RRACS 400 window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications.

(6) Depending on the type of write-off, the journal entry will be as follows :

1. Small Debits Cleared - Debit account 6540 and credit not limited to any one NMF account.

2. Small Credits Cleared - Credit account 6540 and debit not limited to any one NMF account.

3. Status 53 - Debit account 1830 and credit account 13XX NMF Accounts Receivable.

4. Reversal of Status 53 -Debit account 13XX and credit account 1830.

5. NMF Account Statute cleared - Debit account 6600 and credit account 1830.

6. Reversal of NMF Account Statute Cleared - Debit account 1830 and credit account 6600.

(7) RACS will then input the journal number to ANMF using the UPDATE Journal screen.

(1) RACS will receive the DCF 03 run, which may contain NMF documents.

(2) NMF applications from the DCF will generate Form 4830.

(3) RACS will receive Form 4830 with Form 813.

(4) Balance Form 813 to DCF 03, Transaction Register of NMF applications.

(5) Journalize Form 4830.

1. Using the RRACS 400 window, which can be found under the Accounting Application Main Menu under Miscellaneous Applications, input the total amount.

2. The journal entry will be a debit to 4420 (NMF) and a credit to 1710 (Dishonored Check).

Note: All DLNs for current fiscal year must be reclassed as a debit 2110 and a credit to the revenue receipt tax class.

3. The journal number must be stamped or written on the DCF 03 run and the supporting documentation.

(6) RACS will input the Form 813 information into ANMF using the Block Control screen and route the documents to the NMF function for input to ANMF.

(7) Route Form 813 to Data Control for input to the SCCF.

(8) After successful input to ANMF, the journal will systemically post to the RRACS system with a 141 journal and automatically close the DLN on SCCF..

(9) RACS will then input the journal number to ANMF using the UPDATE Journal screen. Use the transmittal recap of summary.

(1) When it has been determined that an account has been erroneously abated and the period for correcting it on IDRS has expired, the case is routed to the Statute function for controlling and monitoring purposes. Accounting will receive a request for the reversal of an erroneous abatement from Statute. See IRM 25.6, Statute of Limitations and IRM 3.17.46, Automated Non-Master File Accounting for additional information on processing by Statute and NMF.

(1) The following accounts are associated with CADE.

(2) The account series generally consists of taxpayer accounts that contain an outstanding balance of monies due and payable to the U. S. Government. Most of the accounts receivable are the results of tax assessments against the various tax classes.

(1) The following are the accounts associated with Credit Transfers.

(1) This report tracks revenue receipts in transit to campuses through account 4900, by Document-ID and by debits and credits. The Document-ID format is XXXX-XX-XX-XX. The first four digits are the sequence number, the fifth and sixth digits are the campus transferred to, the seventh and eighth digits is the year and the ninth and tenth digits are the campus it is transferred from. See IRM 3.17.21, Credit and Account Transfers, for further information.

(2) This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance Report.

(1) Credits and debits applicable to taxpayer accounts in other campuses are often received. Credits and debits on IMF or BMF are offset in the master file posting runs and journalized systemically from the SC Recap. Available credits and debits not on master file will be transferred on Form 2158, Credit Transfer Voucher.

(2) Source documents for credit/debit transfers may include but is not limited to the following documents:

1. Form 3244, Payment Posting Voucher

2. Form 2424, Account Adjustment Voucher

3. Form 3809, Miscellaneous Adjustment Voucher

4. Form 1331, Notice of Adjustment

5. Form 4830, IDRS Multi-Purpose Posting Document

6. URF 03 run

7. DCF 03 run

8. Various subsequent transaction documents

(3) RACS will receive a Form 2158, with supporting documentation. The Form 2158 must contain which account the debit or credit transfer is coming from and a Trace ID number.

(4) The serial number of the Form 2158 will be used as the Doc-Id in RRACS.

(5) The journal entry will vary depending upon whether the documents are credits or debits.

(6) For a credit transfer out, using the RRACS 435 window, which can be found under the Accounting Application Main Menu, Credit Transfer Out, input the amount.

1. The journal entry will be a debit to either 1710 (Dishonored Checks), 1321,1322, 1324, 1360, 1371, 1389 or 1830 (NMF Statuses), 4420 (NMF), 4430 (NMF Unpostables), 4620 (Unidentified), 6310 (Miscellaneous Fees), 6400 (Miscellaneous Revenue Collections) or 6800 (Excess Collections) and a credit to 4900 (Revenue Credits In Transit to Other Campuses).

(7) For a debit transfer out, using the RRACS 436 window, which can be found under the Accounting Application Main Menu, credit Transfer Out, input the amount.

1. The journal entry will be a debit to 4900 (Revenue Credits In Transit to Other Campuses) and a Credit to either 1710 (Dishonored Checks), 1321,1322, 1324, 1360, 1371, 1389 or 1830 (NMF Statuses), 4420 (NMF), 4430 (NMF Unpostables), 4620 (Unidentified), 6310 (Miscellaneous Fees), 6400 (Miscellaneous Revenue Collections) or 6800 (Excess Collections).

(8) Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation. Send documents to receiving campus.

(9) If the transfer is from the deposit funds (Offer in Compromise, Seized Property and Miscellaneous Deposit Funds), the deposit fund document number must be input. This number must match the deposit fund record in the gaining campus.

(10) For a credit deposit fund transfer out, using the RRACS 437 window, which can be found under the Accounting Application Main Menu under Credit Transfer Out, input the amount.

1. The journal entry will be a debit to either 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds) and a credit to 4740 (Deposit Funds In Transit).

(11) For a debit deposit fund transfer out, using the RRACS 438 window, which can be found under the Accounting Application Main Menu under Credit Transfer Out, input the amount.

1. The journal entry will be a debit to 4740 (Deposit Funds In Transit) and a credit to either 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds).

(12) Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation. Send documents to receiving campus.

(1) RACS will receive Form 2158, Part 3, from other campuses. Form 2158 must include a Trace ID. Form 2158 is normally used to transfer NMF credits between campuses. In some cases, abatements, debits and deposit funds are also transferred.

(2) The serial number of the Form 2158 will be used as the Doc-Id on RRACS.

(3) The journal entry will vary depending upon whether the document is credit or debit money.

(4) For a credit transfer in, using the RRACS 441 window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

1. The journal entry will be a debit to account 6580 (Revenue Credit Transferred To and From) and a credit to either account 4420 (NMF), 6310 (Miscellaneous Fees) or 6400 (Miscellaneous Revenue Collections).

(5) For a debit transfer in, using the RRACS 442 window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

1. The journal entry will be a debit to either account 4420 (NMF), 6310 (Miscellaneous Fees) or 6400 (Miscellaneous Revenue Collections) and a credit to account 6580 (Revenue Credit Transferred to and from).

(6) Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation.

(7) If the transfer is to the deposit funds (Offer in Compromise, Seized Property and Miscellaneous Deposit Funds), the deposit fund document number must be input. This number must match the deposit fund record already established on RRACS.

(8) For a credit deposit fund transfer in, using the RRACS 443 window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

1. The journal entry will be a debit to account 6590 (Deposit Fund Credit Transferred to and from) and a credit to either account 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds).

(9) For a debit deposit fund transfer in, using the RRACS 444 window, which can be found under the Accounting Application Main Menu under Credit Transfer In, input the amount.

1. The journal entry will be a debit to either account 4710 (Offer in Compromise), 4720 (Seized Property) or 4730 (Miscellaneous Deposit Funds) and a credit to account 6590 (Deposit Fund Credit Transferred to and from).

(10) Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation.

(1) Originating campus will receive the confirmation copy of Form 2158 back from receiving campus for confirmation on RRACS. The RACS function will receive confirmed Form 2158, both revenue receipt and deposit fund transfers. Form 2158 cannot be rejected. If credit cannot be processed in the receiving campus, re-transfer on a new Form 2158 per IRM 3.17.21, Credit and Account Transfers.

(2) The serial number of the Form 2158 will be used as the Doc-Id on RRACS.

(3) The journal entry will vary depending upon whether the document is credit or debit money.

(4) For a credit confirmation, using the RRACS 446 window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Rev Rec CR 2158", input the amount.

1. The journal entry will be a debit to account 4900 (Revenue Credits in Transit to Other Campuses) and a credit to account 6580 (Revenue Credit Transferred to and from).

(5) For a debit confirmation, using the RRACS 447 window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Rev Rec DR 2158", input the amount.

1. The journal entry will be a debit to account 6580 (Revenue Credit Transferred to and From) and a credit to account 4900 (Revenue Credits in Transit to Other Campuses).

(6) For a credit deposit fund confirmation, using the RRACS 448 window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Deposit Fund CR 2158", input the amount.

1. The journal entry will be a debit to account 4740 (Deposit Funds in Transit) and a credit to account 6590 (Deposit Fund Credit Transferred to and from).

(7) For a debit deposit fund confirmation, using the RRACS 449 window, which can be found under the Accounting Application Main Menu under the confirmation drop down menu pick "Deposit Fund DR 2158", input the amount.

1. The journal entry will be a debit to account 6590 (Deposit Fund Credit Transferred To and From) and a credit to account 4740 (Deposit Funds in Transit).

(8) Journal identification number will be stamped or transcribed on the Form 2158 and any supporting documentation.

(1) The following accounts are used to process IPAC receipts and checks from the DOJ.

(1) The Debt Management Section (DMS) of DOJ will transfer to Kansas City (ALC 2009-0900) any funds collected. All transfers will be made via IPAC.

(2) This Intra-Governmental Payment and Collection System Receipt (IPACR) will be supported by a listing showing the debtor's name and SSN, interest computation date, cause of the action, collection office claim number, dollar amount, and a collection office referral number. Upon receipt of the IPACR, Accounting will enter TAS 20F3844 (if not already present) and ensure that the total of the amounts on the listing equals the amount shown on the IPACR.

(3) After verification of the amount of IPACR and the support listings, the amount will be journaled into RRACS using a 541 window, which can be found under the Disbursement, IPAC Receipts, IPAC DOJ which will debit account 2915 (IPAC DOJ Receipts) and credit account 4975 (DOJ Liability Receipt). The support listing will be used to determine where the payments should be applied.

(4) The payments will be reclassified from account 20F3844 to the appropriate receipt account.

(5) Forward the source documents to the appropriate area for research and balancing. Necessary documents will be prepared and input to apply the payments to the proper taxpayer accounts.

(6) If the funds were erroneously transferred, the specified DOJ collection officer should be contacted, and DOJ will execute an IPAC to transfer the incorrect item back to DMS.

(7) If the funds are returned to DOJ, any actions taken in item (3) above must be reversed. The new Intra-Governmental Payment and Collection System Disbursement (IPACD) returning the funds to DOJ is input to RRACS.

(1) Civil payments can be applied using four different methods:

1. Apply to Taxpayer account: RACS will receive Form 2424 to debit account 4975, DOJ Liability account and credit taxpayers account 4220 (IMF), 4120 (BMF) or 4420 (NMF) as appropriate and Form 813 (2) copies.

2. Apply to account 6800, Excess Collection: RACS will receive Form 2424 to debit account 4975 DOJ Liability and credit account 6800 Excess Collection with Form 8758 to the Excess Collection File.

3. Leave credit in account 4975 DOJ Liability account.

4. FBAR, Form 2424 to debit 4975 and credit 4420 for transfer to Ogden. A Form 2158 is created to debit 4420 and facilitate the transfer.

(2) Verify to ensure the posting documents balance to the Form 813 total.

(3) Verify to ensure all Form 813 and other forms prepared balance back to the IPAC document.

(4) RACS will journal the above documents using a 469 window, which can be found under Accounting Applications, TRACTS Application then IPACR Application. Follow the accounts listed on the posting documents for appropriate accounts.

(5) RACS will also receive a Form 3809 to journal a 3% DOJ collection fee.

1. Journal Form 3809 using a 469 window, which can be found under Accounting Applications, TRACS Application, then IPACR Application. The journal entry will be a debit 6950 (DOJ Civil Debt Collection Hold-back) and credit account 4975 (DOJ Liability account).

(6) Transcribe or stamp journal number on all documentation and file and distribute accordingly.

(1) Restitution is a legal remedy that can be ordered by the court, in a criminal case. A restitution order requires the criminal defendant to pay money or render services to victims to redress the loss the defendant has inflicted. Normally imposed during sentencing, it can be agreed to by the parties in a plea agreement or imposed as a condition of probation or supervised release.

(2) In a criminal tax case, the offense generally results in the loss of government property, example; the money to which the government was entitled under the tax laws but which the defendant did not pay. Through a restitution order, a court can require a defendant to pay money to the IRS to redress the losses he or she inflicted on the federal treasury.

(3) In most criminal tax cases involving restitution, the amount of the tax loss is calculated from evidence admitted at trial or from information contained in the plea agreement and presented to the District Court at sentencing.

(4) The August 16, 2010, law change allows the IRS to assess and collect restitution ordered in a tax case in the same way as if it were a tax.

(5) Restitution should not be confused with civil tax liability.

• The amount of the loss a defendant can be ordered to pay as restitution must result from the defendant’s criminal activity and that amount generally does not include civil tax penalties.

• A restitution order does not bar the IRS from determining civil tax liability in an amount greater than the amount ordered payable to the IRS as restitution.

• A restitution order also does not prevent a taxpayer from challenging the IRS’s determination that the civil liability exceeds the amount of the restitution order.

(6) Judgment and Commitment Orders (J & Cs) normally specify that defendants are to submit restitution payments to the Office of the Clerk of Court in the district in which the defendant was sentenced. This will generally include restitution payments required to be paid to the IRS.

(7) The Clerk of Court has the responsibility for receiving, processing and recording restitution payments made by defendants. The Clerk of Court will forward the money (Treasury checks, personal checks and/or money order) to the victim(s) listed in the restitution order. Restitution funds meant for the IRS, received through the court are dispersed via US Treasury check. Criminal restitution payments made to the IRS should be mailed to the address below.

(8) The Clerk of Court offices will disburse criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS are processed by Kansas City Submission Processing, only. The Clerk of Court offices has been requested to send all criminal restitution payments to the following address:
IRS
Attn: Mail Stop 6261, Restitution
333 W Pershing Road
Kansas City, MO 64108

(9) Inquiries received at other campuses regarding court ordered restitution payments should be forwarded to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for receipt and reconciliation of criminal restitution payments.

(10) Personal checks and/or money orders received directly from the taxpayer and not through the ‘Clerk of Court' are still considered restitution payments if the payments are being made pursuant to a court order in a criminal case.

(1) The following accounts are associated with the dishonored check file:

(1) RACS will receive the following DCF computer listings and documents from the Dishonored Check Function:

1. EOD 16, Pages 9 and 10

2. Form 2424

3. Form 4028

4. Form 4830

5. OTCnet - deposit tickets on redeposits or discrepancy washouts

6. SF 5515

7. DCF 03 and DCF 05

(2) EOD 16 run and DCF 05 run amounts should balance. These include the DCF applications to the MF accounts, both current and prior fiscal year.

(3) Journaling should be made from Pages 9 and 10 of EOD 16. Journaling of Current FY applications, Page 6, requires reclassification. The net reclassification to each tax class should be computed before going to the RRACS system for input. IDRS tape processing includes the journal entries of prior and current year DCF applications and related reclassifications for current fiscal year.

(4) Using the RRACS 411 window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/SCCF, journal each entry.

1. The journal entry will be a debit to either account 4120 (BMF), 4220 (IMF) or 4420 (NMF) and a credit to account 1710 (Dishonored Checks).

2. Reclassification will be required. The reclass will be a debit to 2110 (Withholding Revenue Receipts) and a credit to any tax classes involved.

(5) Restricted applications from the DCF should include corrections to previous input errors or deletions from the DCF because of redeposits. For all redeposits, a deposit ticket will be received and journaled through the RRACS 210 window, which can be found under the Deposit Main Menu under Deposit.

1. The journal entry will be a debit to 2110 (Withholding Revenue Receipts) and a credit to 1710 (Dishonored Checks). If the money on the SF 215 is not under tax class 1, a reclass is needed. The reclass would be a debit to the tax class on the SF 215 and a credit to 2110 (Withholding Revenue Receipts).

(6) SF 5515 debit vouchers will be journaled as follows.

(7) Using the RRACS 220 window, which can be found under the Deposit Main Menu under Debit Voucher, journal each debit voucher.

1. The journal entry will be a debit to account 1710 (Dishonored Checks) and a credit to 2110 (Withholding Revenue Receipts).

(8) Any Form 2424 or 4028 should be journaled using the RRACS 400 window which can be found under the Accounting Application Main Menu under Accounting Applications.

1. Journal according to the accounts stated on the documents.

(9) Distribute runs and documents to the balancing function in the Accounting DCF Team.

(10) Corrections to previous input errors will be "V" applies or "Z" applies.

(1) Dishonored checks may be received on the following:

1. Deposit Funds account 7002

2. General Funds account 23XX

(2) Any record on the DCF for one of these accounts should be voided and entries made from DCF 03. Source documents are required for each of these.

(3) RACS will receive a photocopy of check and DCF worksheet with account number annotated and the document ID number.

(4) For a deposit fund use the following journal:

(5) Using the RRACS 413 window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/Deposit Fund, input each Doc-Id and amount separately.

1. The journal entry will be a debit to either account 4710 (Offer in Compromise), 4720 (Sales of Seized Property) or 4730 (Miscellaneous Deposit Funds) and a credit to account 1710 (Dishonored Checks).

2. Reclassification will be required. The reclass will be a debit to account 2110 (Withholding Revenue Receipts) and a credit to account 7002 (Deposit Fund Receipts).

(6) For miscellaneous fees use the following journal:

(7) Using the RRACS 412 window, which can be found under the Accounting Application Main Menu under Dishonored Check Apply, DCF/MISC Fee, input each amount separately.

1. The journal entry will be a debit to account 6310 (Miscellaneous Fees) and a credit to account 1710 (Dishonored Checks).

2. Reclassification will be required. The reclass will be a debit to account 2110 (Withholding Revenue Receipts) and a credit to either account 2310 (Treaty Money), 2315 (Arbitrage - Ogden SPC Only), 2320 (Miscellaneous Receipts), 2325 (Forfeiture), 2330 (EP/EO User Fees - Ogden SPC Only), 2340 (Photocopy Fee), 2350 (Public Debt), 2360 (Conscience Fund), 2370 (Mortgage Subsidy Bonds), 2380 (Original Installment Agreement), 2385 (Reinstatement Installment Agreement) or 2395 (OIC User Fee - Brookhaven, Cincinnati and Memphis Only).

(8) Transcribe or stamp journal identification number on listing and/or documents for audit trail.

(9) Distribute run and documents accordingly.

(1) RACS will receive from the Dishonored Check Function the DCF 03 daily run.

(2) RACS will journal from the DCF 03 using a RRACS 404 window, which can be found under Accounting Application, Unidentified Apply, URF/MISC.

(3) The journal will be a debit to account 4620, Unidentified Remittance and a credit to account 1710, Dishonored Checks. Reclass if necessary, using the same window.

(4) Transcribe or stamp journal identification number on listing and/or documents for audit trail.

(1) The following accounts are associated with ECC.

(1) IMF and BMF TEP controls are received for MF mainline and IDRS good transactions to tape. The controls may be one or a combination of the following:

1. GMF 1545

2. SCF 1152

3. SCF 1151

4. SCF 1340

5. GUF 5342

(2) Enter the debit amount and credit amounts. Enter the net amount. If source document is other than GMF 1545, the net amount must be calculated.

(1) One of the following corrected unpostable controls may be received: GMF 1545 or GUF 5340.

(2) Enter the debit amount, the credit amount and the net amount from GMF 1545, corrected unpostables line or from the GUF 5340, total corrected unpostables line.

(1) Documents which are unable to post at ECC come back to the campus as unpostable. Resolution codes 1, 2 and 8 on GUF 5340 nullify the unpostables. Code 1 indicates the record goes back to suspense status, code 2 indicates a voided record and code 8 indicates a record going to Rejects.

(2) Documents may be perfected and re-input, renumbered to another file or tax class, transferred to another campus or transferred with same DLN to unidentified, deposit fund or general ledger accounts such as account 6800, Excess Collections or account 1510, Other Receivables.

(3) Receive Unpostable Control Report (GUF 5340). Entries will be made from listings and documents. For amounts being put back in process, entries will be made from the total nullified unpostables line. Journal entries will be from Unpostable accounts (4130 BMF and/or, 4230 IMF) to "In-Process" accounts (4120 BMF and/or 4220 IMF). Subsequent reclassification may be required.

(4) Credit entries to deposit fund accounts will be made from the individual documents. Documents must have a Doc-Id. Journalize from Unpostable accounts 4130 or 4230 to Deposit Fund accounts (4710 OIC, 4720 Sale of Seized Property or 4730 Miscellaneous DF). It will be necessary to reclassify. Decrease Revenue Receipts account 21XX (credit) and increase Deposit Funds account 7002 (debit).

(5) Data from GUF 5340 will automatically journal via the RRACS 35 process. This run includes the new, nullified, corrected and reclassified unpostable transactions received from and sent to ECC for MF. If electronic data input is incorrect, a new transmission can be process or the data can be input manually from the hard copy. This manual process can be accomplished through the Accounting Application main menu. Transcribe or stamp journal identification number on control listings and documents, as required for audit trail.

(1) Source documents received when new unpostables are added to the file are:

1. IMF Unpostable Controls - Listing number GUF 5340

2. IMF Revenue Receipt Control Sheet (RRCS) - Listing number SCF 1340

3. BMF Unpostable Controls - Listing number GUF 5340

4. BMF Revenue Receipts Control Sheet (RRCS) - Listing number SCF 1340

(2) Verify that unpostable controls balance with RRCS posting block proof balances with unpostable master control. Entries will be made from unpostable controls total items and amount. Ensure cycle number is available on listing. Net credit on unpostable controls will be an increase (credits ECC Unpostable Documents accounts - IMF 4230 and BMF 4130). Net debit on unpostable controls will be a decrease.

(3) New unpostables as well as nullified, reclassified and corrected unpostables are journalized from the GUF 5340 by tape processing. RAC 35 is the program which posts the data in a batch environment rather than entering the data manually. RRACS 35R is the program that reverses all posting done by RAC 35. Windows will serve as backup in the event of a tape failure. Transcribe or stamp journal identification number on unpostable listings for audit trail.

(1) Receive accountability acceptance voucher or locally established documentation of deletes by ECC. Separate entries are required for each MF. Enter related debit or credit amounts deleted by ECC.

(1) The following accounts are associated with EFTPS.

(1) Each deposit ticket sent by EFTPS to RRACS is based on the classification provided by the financial agent.

(2) Use the DT/DV Summary Report as an index to make sure that all deposit tickets have been received and journalized and to validate the journal totals.

(3) The automated journal number is 110. If a manual journal is required, journal using window 210, which can be found under the RRACS Main Menu under Deposit. Use a printed copy of the EFTPS deposit ticket to support each journal. The printed deposit ticket lists all the batch numbers that have been included on the deposit.

1. Debit the appropriate tax class in the account 2100 series or tax class 9, revenue suspense.

2. Credit one or more of the EFTPS suspense accounts.

(4) Deposit tickets are sorted by settlement date in EFTPS.

(5) The deposit ticket does not identify user fees and non-revenue items. Non-revenue deposit items are classified into account 4765, then reclassified.

(6) Deposit tickets from the Federal Payment Levy Program (FPLP) are journalized to different accounts because the money is received through IPAC.

1. When the money is received on IPAC, a manual journal is prepared to debit account 2910 and credit account 4765.

2. The EFTPS journal 114 debits account 4765 and credits account 2910 and debits the account 21XX tax classes and credits the appropriate EFTPS suspense accounts.

3. RRACS is programmed to recognize the FPLP deposit ticket journal record by the record code 5. Normal EFTPS deposit tickets contain record code 1.

(1) Each EFTPS debit voucher contains tax classification information provided by the financial agent.

(2) Use the DT/DV Summary Report as an index to make sure that all debit vouchers have been received and journalized and to validate the journal totals.

(3) Use the printed debit voucher as the source for journal entry.

(4) The automated journal number is 111. If a manual journal is required, journal using window 221 to debit the appropriate suspense account and credit the account 21XX tax class.

(5) For EFTPS debit vouchers, a manual journal from the IPAC record debits account 4765 and credits account 2910. Then the EFTPS 114 journal debits account 2910 and credits account 4765 and debits the appropriate EFTPS suspense accounts and credits the account 21XX tax classes. The journal record from EFTPS is identified by record code 6.

(1) The source document for the automated reclassification journal number 112 is the EFTPS reclassification summary. Any debit or credit transactions that can be reclassified by the EFTPS system is included on the EFTPS Reclassification summary, including the following types of transactions:

1. Any payment or debit record that was mis-classified by the financial agent.

2. Any record that was changed to a different tax class or MF by error correction.

3. Any record that was changed to a different tax class or MF because of an auto correction during load and validate.

4. Batches that have been rejected during EFTPS load and validate. The payment is reclassified to tax class 9, MF 7, until a corrected batch is re-submitted. Because the reclassification program is unable to determine the original MF, the EFTPS reclassification summary will show rejected batches as coming from BMF.

5. Special fund payments that were classified as tax class 9, revenue suspense, by the financial agent but were assigned tax type codes that EFTPS can further classify. EFTPS assigns a pseudo tax class, which is printed on the reclassification list. These include:

(2) Any other reclassification must be completed with a manual journal when the items are deleted from EFTPS suspense.

(3) The EFTPS Reclassification summary is divided into two parts:

1. Part 1 is the tax class reclassification containing the net change in tax classes, as identified by a comparison between the tax type codes and the deposit ticket and by changes in tax types made by error correction or auto correction.

2. Part 2 is the MF reclassification based on a comparison between the tax type codes and the MF in the batch header, plus MF changes created by auto correction and error correction.

3. Both parts include a net change column that can easily be used to create a reclassification journal.

(4) The EFTPS reclassification list includes detailed information of the items that are being reclassified.

(1) A TEP journal record is prepared for each MF as EFTPS records are sent to ECC.

(2) The automated journal number is 113. If a manual journal is required, use the EFTPS daily trans release summary to prepare journal 417 for BMF and 418 for IMF.

(3) For the normal credit balance, debit the ECC suspense account and credit the EFTPS suspense account.

1. For BMF, debit account 4110 and credit account 4125

2. For IMF, debit account 4210 and credit account 4225

(4) If the report has a debit balance, debit and credit accounts are reversed.

(1) The EFTPS accounting package contains the following documents:

1. OTCnet deposit ticket

2. Tax class summary report

3. EFTPS electronic reject/offset report

(2) EFTPS transmits a file to RRACS. RRACS generates batch journal windows 110, 111, 112, 114 and post to RRACS.

(3) The accounting technician:

1. Verifies the OTCnet deposit ticket and supporting documentation against the EFTPS batch journals

2. If all agree, write or stamp the batch journal number on the OCTnet deposit ticket and supporting documentation

3. If an error occurs while writing or stamping the EFTPS batch journal number on the deposit ticket (OTCnet) or supporting documentation, you should: put a line through the incorrect journal number, insert your initials, date the document and write or date stamp the correct EFTPS batch journal number on the deposit ticket and supporting documentation

4. For discrepancies, submits a KISAM ticket to: BU-CFO-RFM-RA-RS & A

5. For batch journals failing to post to RRACS, submits a KISAM ticket to: &IT ACIOAD-RRACS-Developers. The technician may manually journalize a 210 entry

(4) RRACS produces the EFTPS Error Report (0126) when a problem arises with the EFTPS batch journal.

(1) Recorded in this liability account is the total of all those BMF taxpayer modules which are in credit-balance status. Modules are normally in credit-balance status due to pre-payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

(2) For this account, the term pre-payment credits is defined to include all those credit amounts in a module for which there is no assessment or debit amount equal to or greater than the credit.

(3) No external subsidiary record is used.

(4) The account will be updated by electronic transmission.

(1) Recorded in this liability account is the sum- total of all those IMF taxpayer modules which are in credit-balance status. Modules are normally in credit-balance status due to pre-payments by estimated tax payments. Modules may also be in credit balance due to hold codes or freeze codes. These amounts are also included in this account.

(2) For the purpose of this account, the term pre-payment credits are defined to include all those credit amounts in a module for which there is no assessment or debit amount equal to or greater than the credit.

(3) No external subsidiary record is used.

(4) The account will be updated by electronic transmission.

(1) This account represents the sum- total of non-tax accounts with credit balances on the MF. Included in this account are individual and business accounts with an outstanding balance due.

(2) No external subsidiary record is used.

(3) The account will be updated by electronic transmission.

(1) This liability account will record debits to taxpayers' IMF accounts, to prevent excess refunds when it has been determined by Exam that an unallowable deduction is claimed on the return. This posts as a debit to the taxpayer's account (TC 576) and a credit to account 4950.

(2) Reversal of this debit will be recorded, after the correct tax liability is determined by audit. The reversal transaction is a credit to the taxpayer's account (TC 577) and a debit to account 4950.

(3) No visible external subsidiary record exists, however, those taxpayer accounts on the IMF marked with the unallowable deduction transaction code make up the balance of this account.

(4) The account will be updated by electronic transmission.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

(2) The Erroneous Refund report helps the Erroneous Refund function track erroneous refunds by Doc-Id. This report lists erroneous refunds by accounts 1530 (court cases), 1535 (CI Restitution court cases) and 1540 (non-court cases). Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount and current balance.

(3) This report will be made available at EOM for balancing purposes. A quarterly review should be done by the Erroneous Refund team to ensure the doc-id and amount balances to the account.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

(2) The Identity Theft Erroneous Refund Monthly Activity report helps the Erroneous Refund function track ID Theft erroneous refunds by Doc-Id. This report lists erroneous refunds in account 1545, ID Theft Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance and current balance.

(3) This report will be placed in the DBA icon with the option to save as electronic version.

(4) This report will default to not print and user can retrieve it electronically.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance report.

(2) The Return Preparer Misconduct (RPM Erroneous Refund report helps the Erroneous Refund function track cases by Doc-Id. This report lists erroneous refunds in account 1547, Return Preparer Misconduct Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount and current balance.

(3) This report does not need to be printed unless needed or requested however a quarterly review should be done by the Erroneous Refund team.

(1) The following general ledger accounts are used for processing erroneous refunds.

(1) The RACS function will receive a Form 3809 for each new erroneous refund case to be opened on the RRACS system.

1. Review each Form 3809 for completeness including the Doc-Id RRACS account number, taxpayer identification and amount of the erroneous refund.

2. All Form 3809 in one DLN block should balance to the Form 813.

3. Prepare Form 8166 for journal entry. Form 8166 should include, at a minimum, Doc-Id, DLN, money amount and transaction date.

   Note: Each Doc-Id must be listed separately on Form 8166. An alternate work listing (calculator tape) may be used.

(2) Journalize Form 3809 to the RRACS system to open each case.

1. Using the RRACS 480/481 windows, which can be found under the Accounting Application Main Menu under Erroneous Refund, input each Doc-Id and erroneous refund amount separately.

2. Use the TC 700 transaction date on Form 3809 when opening the case on RRACS. This transaction date is the date of the erroneous refund (TC 840/846).

3. The journal entry will be a debit to account 1530, 1535, 1540 or 1543 and a credit to account 4120 (BMF) or 4220 (IMF).

   Note: There will only be one journal number for each Form 813 received.

4. The journal number must be stamped or written on all supporting documentation.

5. Maintain original debit side of Form 3809 for account 1530/1540/1543 in Accounting. Maintain a copy of Form 3809 in Accounting for account 1535.

6. Forward credit side of Form 3809 to MF for processing.

Note: Beginning in February 2022, due to a new guideline, hold off journaling from the 25th calendar day to EOM.

(1) A Form 3809 for a new BMF identity theft could be received at any time. BMF cases will have a doc code 48 or 58 with a blocking of 940-989.

(2) Beginning August 5, 2014, the RACS function In Cincinnati Only could receive a Form 3809 for a Return Preparer Misconduct (RPM)case. These 3809s will be marked with "RPM erroneous refund" in the remarks section and will also be a debit to the 1545 account. RPM cases will have a doc code 48 or 58 with a blocking of 930-939.

(3) Beginning February 1, 2017, the RACS function, in Cincinnati only, could receive Form 3809 for Non-Master File (NMF) (Beginning October 1, 2018 Kansas City).

1. Each pack of work received will consist of four copies of Form 813 and three copies of Form 3809 (destroy third copy) under cover of Form 3210. Form 3210 will include DLN(s) of the Forms 813 that are being sent. RACS will review the Form 3210 and acknowledge receipt ensuring date of receipt is annotated.

   Note: There will be no more than 75 items per Form 813.

(4) Within 24 hours of receipt, the RACS function will assign a Doc-Id, and prepare a Form 8166 using the Doc-Id and item count, listing each money amount separately from the Form 3809. The total amount listed on the Form 8166 must equal the total on the Form 813. Form 3809 received for BMF IDT or BMF RPM or NMF (KCSC Only) for account 1545, the Doc Id format will be 15 digits consisting of the DLN of the Form 813 (without sequence number) plus two-digit year plus total volume on Form 813, e.g., 172482619301475.

(5) Journal the total amount of each Form 813 listed on the Form 8166, using a 480 window to debit account 1545 and credit either account 4120 (BMF) or 4420 (NMF).

1. Stamp or write the 480 journal number on Forms 3809 and/or Forms 813.

2. Forward the debit side of Form 3809 and a copy of Form 813 to the Erroneous Refund technician. The Form 3809 should be maintained in account 1545 file and use in balancing.

3. If 3809 is for RPM (CSC Only), these 3809s should be kept separately from the IDT cases.

4. Hand carry one copy of Form 813 to Data Conversion for DLN set up on SCCF.

   Note: At campus discretion, the DLN may be established in the Data Control Unit.

5. Hand carry, the next morning, the credit side of Form 3809 and one copy of Form 813 to Batching for processing under cover Form 3210.

6. For NMF input the Form 813 information for the credit side into ANMF using the Form 813 Block Control screen and route to the NMF function for input to the ANMF system.

(1) A repayment or partial repayment of erroneous refund will close the case in accounts 1530/1535/1540/1543 or reduce the debt owed to IRS.

(2) RACS will receive a Form 3809 for each repayment or partial repayment of an erroneous refund case open on the RRACS system.

1. Review each Form 3809 for completeness including the Doc-Id, RRACS account number, taxpayer identification and amount of the erroneous refund.

2. All Form 3809s in one DLN block should balance to the Form 813.

3. Prepare Form 8166 for journal entry.

   Note: Each Doc-Id must be listed separately on Form 8166. An alternate work listing (calculator tape) may be used.

(3) Journalize Form 3809s to the RRACS system to close or reduce the balance of each case.

1. Using the RRACS 480/481 window, which can be found under the Accounting Application Main Menu under Erroneous Refund, input each Doc-Id and payment amount separately. For prepare date use the current date.

2. The journal entry will be a debit to account 4120 (BMF) or 4220 (IMF) and a credit to account 1530,1535, 1540 or 1543.

   Note: If you receive an error code, see IRM 3.17.64.4.4, Error Conditions, for the explanation.

3. The journal number must be stamped or written on all supporting documentation.

4. Maintain original credit side of Form 3809 in Accounting Erroneous Refund Team for the 1530/1540/1543 accounts and associate with original debit Form 3809 that opened the case. For account 1535, maintain a copy of Form 3809 in Accounting Erroneous Refund Team and associate with Form 3809 that opened the case. Send original Form 3809 with journal number back to originator.