3.8.44. Campus Deposit Activity

(1) This IRM provides administrative instruction and procedural guidance to the management and clerical staff for the processing and deposits of paper checks received and processed through the Integrated Submission and Remittance Processing (ISRP) system at the following Submission Processing Campuses:

• Austin Submission Processing Center (AUSPC)

• Kansas City Submission Processing Center (KCSPC)

• Ogden Submission Processing Center (OSPC)

(1) Every employee is accountable for a remittance they receive or collect on behalf of the IRS. By law, Internal Revenue Code (IRC) 7804(c) imposes liability against any officer or employee of the Internal Revenue Service or Treasury Department who fails to account for and pay over any amount of money or property collected or received in connection with the Internal Revenue Law. The statute does not require intentional misconduct, such as willfulness, on the part of the employee.

(2) IRS Strategic plans includes providing America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

(3) The IRS frames internal controls by principles outlined in Standards for the Internal Control in the Federal Government. Internal control is a process used by management to help achieve its objective.

(4) Government funds collected are generally deposited within three banking days (31, U.S.C. 3302). IRC 7809 further requires a 24-hour deposit standard for tax collections.

(1) The Campus Director oversees the flow of receipts to ensure the Deposit Activity program objective of accurately depositing money receipts within 24 hours is achieved.

(2) Roles and Responsibilities Operations Manager and Department Managers.

1. Monitor the flow of receipts to ensure the program objective of accurately depositing money receipts within 24 hours is achieved.

2. Monitor team manager’s product reviews of the final deposit, IRM 3.8.44.2.2, Managerial Responsibilities (Product Review of Final Product).

3. Managers and employees follow the ISRP RPS Deposit End of Day (EOD) Processing Guidelines when working outside the scope of a normal workday, IRM 3.8.44.2.3, Managerial Responsibilities (ISRP Deposit End of Day Processing Guidelines) When Working Outside The Scope Of A Normal Workday.

4. Managers and employees follow Peak Processing Extended Hardware Maintenance Shift Cancellation Procedures in a timely manner, IRM 3.8.44.2.4, Managerial Responsibilities (Peak Processing Extended Hardware Maintenance Shift Cancellation Procedures).

5. Security and security reviews, IRM 3.8.44.2.6, Security Responsibilities.

6. Monitor the Daily Activity Report (DAR) and the Daily Deposit Report (DDR), IRM 3.8.44.2.7, Reporting Responsibilities.

7. Ensure weekday, weekend, and holiday reporting is conducted within the guidelines of IRM 3.8.44.2.8, Weekday/Weekend Reporting, and IRM 3.8.44.2.9, Holiday Reporting.

(3) Roles and Responsibilities of the Team Manager.

1. Monitor the flow of receipts to ensure the program objective of accurately depositing money receipts within 24 hours is achieved.

2. Conduct product reviews of the final deposit, IRM 3.8.44.2.2, Managerial Responsibilities (Product Review of Final Product).

3. Follow the ISRP Deposit End of Day (EOD) Processing Guidelines, when working outside the scope of a normal workday, IRM 3.8.44.2.3, Managerial Responsibilities (ISRP Deposit End of Day (EOD) Processing Guidelines When Working Outside The Scope Of A Normal Workday).

4. Follow the Peak Processing Extended Hardware Maintenance Shift Cancellation Procedures, in a timely manner, IRM 3.8.44.2.4, Managerial Responsibilities (Peak Processing Extended Hardware Maintenance Shift Cancellation Procedures).

5. Monitor security guidelines and conduct security reviews, IRM 3.8.44.2.6, Security Responsibilities.

6. Monitor the Daily Activity Report (DAR) and the Daily Deposit Report (DDR), IRM 3.8.44.2.7, Reporting Responsibilities.

7. Conduct weekday, weekend, and holiday reporting within the guidelines of IRM 3.8.44.2.8, Weekday/Weekend Reporting, and IRM 2.3.44.2.9, Holiday Reporting.

(4) Roles and Responsibilities of team employees.

1. Follow instructions contained in this IRM.

2. Maintain updated IRM material.

(1) Program Reports: Use the following reports to manage and review the Deposit Activity program. You can find examples of each form in the Exhibits subsection of this IRM.

1. RPS Document Remittance Register Report

2. RPS Master Remittance Recap Report

3. RPS Refund Repayment Remittance Recap Report

4. RPS Deposit Fund Remittance Recap Report

5. RPS General Fund Remittance Recap Report

6. RPS General Ledger Account Number List-Journal Totals (Master File)

7. RPS General Ledger Account Number List-Journal Totals (Non-Master File)

8. RPS General Ledger Account Number List-Journal Totals (General Funds)

9. RPS General Ledger Account Number List-Journal Totals (Refund Repayments)

10. Transaction Received Date Report

11. Deposit Ticket SF215-C Report

12. Transport Batch Status Report

13. RPS Export Balance Report

14. RPS Archive Summary Report

15. Missing Image Document Locator Report

16. General Ledger Account Number List Journal Total Report for Image Balancing.

17. Deposit Summary Report

(2) Program Effectiveness: The Deposit Activity Program effectiveness is measured through:

1. Quality Review

2. Managerial Reviews

3. Deposit Timeliness Business Measure

(1) Integrated Submission and Remittance Processing (ISRP) System, BancTec Scanners, and Transaction Management System access granted through Business Entitlement Access Request System (BEARS) process.

(2) Security level monitoring.

(3) Key Verification of input payment data by a second employee other than the original entry operator.

(1) Terms, definitions, and acronyms is located in IRM 3.8.44.12.

(1) Following is a list of related documents and IRMs:

• Document 12990, IRS Records Control Schedules.

• IRM 1.14.5, Occupational Health and Safety Program.

• IRM 1.15.3, Disposing of Records

• IRM 3.0.167, Losses and Shortages.

• IRM 3.5.10, Remittance Transaction Research (RTR) System.

• IRM 3.8.45, Manual Deposit Process.

• IRM 3.8.46, Discovered Remittance.

• IRM 3.8.47, Manual Deposit for Field Office Payment Processing.

• IRM 3.10.72, Receiving, Extracting, and Sorting.

• IRM 3.10.73, Batching and Numbering.

• IRM 3.24.133, Residual Remittance Processing System.

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

• IRM 10.2.11, Basic Security Concepts.

• IRM 10.5.1, Privacy and Information Protection, Privacy Policy.

• IRM 10.5.4, Incident Management Program.

• IRM 11.3.1, Introduction to Disclosure.

• The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

(1) The Internal Revenue Service (IRS) is committed to ensuring a 24-hour deposit standard. As we move toward attaining that goal through improved technology, it is of the utmost importance to deposit the largest amount of money in the shortest possible time frame to achieve good cash management practices. Management at all levels must monitor the flow of receipts to ensure that this objective is achieved. Close of business for a deposit is the final deposit for a deposit date as identified by the date on the deposit ticket. As of 01/01/2016, Internal Revenue Service no longer processes remittances of $100 million or more. See IRM 3.8.44.6.3(6) for handling of $100 Million or more remittances.

(2) The Receipt and Control Operations Manager is responsible for the receipt, safeguard, accuracy, and timely deposit of all monies received in payment to the government through the Internal Revenue Service. Maintaining the integrity of the IRS received date is required. Credit all payments for the earliest date a payment is received by the Internal Revenue Service or the Department of the Treasury. See Exhibit 3.8.44-3, Timely Postmark Check List, for more information on timely postmarks.

(3) Deposit remittances of $100,000.00 or more on the day of extraction. If the remittance is extracted after the daily cut-off time for processing the daily deposit, deposit the remittance with the next scheduled deposit.

(4) Deposit remittances of $50,000.00 and up on the same day of extraction. If the remittance is extracted after the daily cut-off time for processing of the daily deposit, deposit the remittance by the next business day (excluding Saturdays and Sundays).

(5) The extended cycle for depositing receipts for the April peak completion date is determined by Wage and Investment Operating Division and sent to the campuses via memorandum.

(6) During the following mini-peak periods, extended cycles must not exceed five business days. However, it is possible to extend the deposit cycle a maximum of two workdays. See IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates, for more information.

1. Form 1040 series, during the October period

2. Form 1120 series, during the March period

3. Form 720 series, during the February, March, May, August, and November periods

4. During the January and September 15th periods, when the IRS receives large volumes of mail

(7) It is possible to extend the deposit cycle a maximum of three workdays during the January, April, July, and October periods, when the Internal Revenue Service received larger volumes of returns.

(8) During the above-mentioned peak periods, use multiple smaller daily deposit cuts to avoid OTCnet file transfer bottlenecks and continue to deposit the largest amount of money in the shortest time frame. Take into consideration prior year receipts and production standards balanced with approved projected changes (e.g., consolidation issues, transshipping, increase in Electronic Filing System (ELF), changes in Lockbox volume, etc.). See IRM 3.8.45, Manual Deposit Process, for more cash management guidelines.

(1) Receipt and Control deposit managers must ensure the release of a quality balanced deposit.

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

(3) Conduct the review on 5 percent of the remittances during non-peak periods.

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

(5) Deposit managers or appointed representatives must conduct a 100 percent review of deposits prior to release on a given day of each week. Continue the reviews until deposits reach 100 percent accuracy on a regular basis and controllable deposit discrepancies reach below 100 cumulative items.

(6) Prepare an action plan for conducting the reviews.

1. Schedule review dates. (Do not use the same day of the week on a regular basis.)

2. Initiate action if the 24-hour deposit cycle is missed.

3. Record any unbalanced blocks, slipped blocks, encoding errors, piggyback checks, etc.

4. Provide employee feedback.

5. Provide more training if necessary.

(7) Schedule a meeting with Accounting Operations, when necessary, to review discrepancies discovered during the 100 percent Product Review. Record all discrepancies and follow-up annotate action accordingly.

(1) When working overtime during a weekend, holiday, or on a day that is typically outside the scope of a normal workday (i.e., working a Friday night for a Sunday - Thursday shift), the need for End of Day (EOD) processing may exist. Successful posting of deposits to RRACs is dependent on each Site’s Deposit Operation notifying EOps and RRACs when EOD processing is necessary. Deposits that do not successfully post to RRACs poses a significant impact to your Site’s Accounting function, and various support functions.

(2) Tips for EOD Processing:

1. Do not merge Deposit Dates into one Deposit Date

2. Perform only one EOD for each Deposit Date

3. It is possible to open a new Deposit Date, once the previous Deposit Date is closed and the EOD is complete for the closed Deposit Date. Thus, a Deposit Date does not have to match the system date nor the calendar date.

4. It is possible to span several calendar days with one Deposit Date. This is done with a Monday Deposit Date covering the weekend before, if no “deposit cut” is done and only one deposit cut off is performed at the conclusion of the Deposit Date. This is typically done when a site wishes to work overtime on a weekend date to catch up on the previous weeks receipts or to get ahead of incoming Monday receipts. Use Monday’s date as the weekend Processing Date, and do not perform “deposit cut” at the end of the weekend shift. Only one EOD is performed after the end of the normal Monday day shift to include deposit receipts processed Saturday through Monday day shift.

5. When deposit receipts become large, or with the change of work shift from day shift to night shift, Integrated Submission and Remittance Processing (ISRP) allows multiple “deposit cuts” within a deposit date. Remittances would go to the bank on each cut, this includes the last cut. Then at the end of the Deposit Date, one End of Day is done that includes all deposit cuts.

6. When working overtime during a weekend, holiday, or on a day that is typically outside the scope of a normal workday, it is critical to operations that both the RPS area and ISRP EOps understand what the site is planning to work during the overtime hours, what support is necessary, and whether an EOD is required. Open an IRWorks ticket to EOps when an EOD is necessary.

(3) Once ISRP Deposit determines the need for EOD processing, the site must provide notification as outlined below.

1. Open an IRWorks ticket and assign to the two groups listed below. Open a separate ticket for each day requested.
   EOps assignment group - EOps-ECC-WSSB-TSS-SPS
   RRACS assignment group - &IT ACIOAD-RRACS-Developers

2. Issue an e-mail to the following groups and individuals.
   &IT ACIOEOPS-ECC-SPASB4-WSPAS4A
   &IT ACIOAD-RRACS-Developers
   SP-PPB-ISRP
   &W&I SP PB MMDC DEPOSIT STAFF
   Include the following verbiage in the e-mail. “(Site Name) opened IRWorks ticket number (XXXXXXXXX), to request EOD processing support on (Day of Week), (Date). Please pull to RRACs”.

   Example: "Kansas City Deposit function opened IRWorks ticket number XXXXXXXX, to request EOD processing support on Saturday, April 20, 2024. Please pull to RRACs".

(1) Every December each Submission Processing Site provides the Deposit Headquarters Analyst with the Site’s projected peak processing Deposit shift schedule. This schedule is necessary to ensure each site is provided with the contracted maintenance coverage during April peak processing. Headquarters Integrated Submission and Remittance Processing (ISRP) Project Management Office (PMO) and Headquarter Deposit Analyst issues a final Extended Hardware Maintenance Schedule prior to April peak processing. Carefully review your site’s final schedule, and follow the instructions provided below if management determines it is necessary to cancel a shift that is shown on your site’s final April peak processing extended hardware maintenance schedule. Failure to follow the instruction below results in an unnecessary cost paid to the contracted vendor.

1. When cancelling a weekday shift, perform the steps below at least 10 hours prior to the beginning of the cancelled shift. If the cancelled shift is a night shift or weekend shift, complete the steps below at least 26 hours prior to the beginning of the cancelled shift.

2. Open an IRWorks ticket and assign directly to ISRP PMO IRWorks group “SP-PPB-ISRP”.

3. Call the local Systems Analyst (SA) to notify them of the opened ticket.

4. Call the Headquarters ISRP PMO management to notify them of the opened ticket. If voice mail is reached, leave a message. ISRP PMO provides the names and telephone numbers to the site ISRP Coordinator every April.

5. Send a follow-up e-mail to the ISRP PMO management, and local Operations Specialist with a copy of the “Shift Cancellation Log” (completed up to the “PMO Contact” column). ISRP PMO provides the log to the site ISRP Coordinator every April.

(1) Anytime a problem is encountered with the Deposit BancTec hardware or software, the site must open an IRWorks trouble ticket as soon as the site identifies there is a problem. Even if the Operation Specialist and/or local Enterprise Operations (EOps) SA fixed the problem immediately, the site must open a ticket.

1. Priority 2 - Impact to daily deposit. Daily deposit is in jeopardy.

2. Priority 3 and 4 - No impact to daily deposit. Daily deposit is not in jeopardy.

(1) Deposit managers must communicate security standards contained in IRM 10.2.11, Basic Physical Security Concepts, to their employees at least once a year.

(2) Management must provide adequate security equipment and facilities to safeguard money, securities, etc., handled in the Deposit Activity Function. See IRM 3.8.45, Manual Deposit Process, for more information.

(3) Employees should report any employee suspected of embezzlement, fraud, theft, or identity theft to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 800-366-4484 immediately. If reporting potential losses to TIGTA, then also inform the campus Remittance Security Coordinator (RSC).

(4) Items strictly prohibited from the secure Receipt Processing areas:

• Lunch Bags / Lunch boxes

• Purses

• Backpacks

• Briefcases

• Sports Bags

• Hats

• Shopping Bags

• Shoulder Totes

• Fanny Packs

• CD or Tape Cases

• Books

• Newspapers, magazines and

• Similar type items

(5) A transparent laptop bag or back pack is permitted inside limited areas only when transporting an official government assigned laptop by authorized management personnel.

• Before entering the limited area remove the transparent laptop bag from the non-transparent laptop bag and transport the transparent laptop into the limited area. Leave the non-transparent laptop bag in the locker.

• Enter the limited area with the laptop inside the transparent bag. The transparent laptop bag and laptop is subject to inspection upon arriving and leaving the limited area.

• When leaving the limited area, exit with the laptop in the transparent laptop bag. Retrieve the non-transparent laptop bag from the locker and place the transparent laptop bag inside of the non-transparent laptop bag before exiting the facility.

(6) The use of the camera function on a camera capable mobile device, cell phone, Smartphone, Blackberry is prohibited in the secure remittance processing area.

(7) Connection of personally owned equipment to IRS systems and networks directly or via Virtual Private Network (VPN) is prohibited. See IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance, for more information.

(8) Management or designated employee must conduct monthly random reviews of employee compliance with all security policies as they relate to personal belongings. Management is required to maintain a log documenting results of the review. This includes, but is not limited to, ensuring personal removable media is not connected to IRS systems as stated in (6) above.

(9) Managers in Remittance Processing areas must ensure visitors only carry into the restricted area, articles absolutely necessary to conduct their business while working in the area. For example, portfolios, note pads, repair kits or manuals, binders, paper documentation, etc. Inspection of these items is not necessary upon entering the area. However, advise visitors that a member of management or designee is required to screen these items prior to exiting the restricted area to reduce the opportunity of unauthorized disclosure, theft of taxpayer information, or theft of remittances. If the door monitor observes a visitor with an item that is prohibited from the restricted area they must immediately notify a manager. Management is required to approach the visitor to discuss the policy of prohibited articles and determine whether the item is necessary for conducting business within the restricted area.

(10) All IRS personnel must take care and hold a legal responsibility to protect Sensitive but Unclassified (SBU) data, including Personally Identifiable Information (PII) and Federal Tax Information (FTI). IRM 10.5.1, Privacy and Information Protection, Privacy Policy, provides policy and key privacy definitions, and IRM 10.5.4, Incident Management Program, provides the procedures for handling a data breach and/or loss of Sbu data (including PII and FTI). A loss of SBU data could result in information being compromised to perpetuate identity theft. Therefore, when transmission of SBU data via email or facsimile must be done so usign IRS IT approved encryption technology such as secure messaging via Outlook and Enterprise Electronics Fax (EEFax), sanitize PII unless there is a business reason. Use secure messaging and encryption. Take care to protect Sensitive but Unclassified SBU data (including PII and tax information). See IRM 10.5.1.6.8, Email, and IRM 10.5.1.6.9.4, Faxing. If you suspect or know of a potential information loss, immediately report it to your manager, the TIGTA Office of Investigations at (800) 366-4484, and the Office of Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office (IM). Use the PII Breach Reporting Form, located PII Breach Reporting Form . Call (267) 466-0777, if you have a problem with the on-line form or a question about completing the on-line form.

(11) Enterprise Electronic fax (EEFax) is the standard for faxing IRS wide. Receipt and Control employees must use EEFax to fax documents with Sensitive but Unclassified (including Personally Identifiable Information (PII) and tax information). All faxes must have the confidentiality notice created in the setup process prior to sending any document via EEFax. For more information on EEFax, see Enterprise Electronic Fax (EEFax) (irs.net.gov)

(12) All employees with badge access to the restricted area of Receipt and Control must have restrictions on Integrated Data Retrieval System (IDRS) if they have IDRS access at all. Every IRS employee with blank Form 809, Receipt for Payment of Taxes, responsibility must have Command Code RSTRK with Definer R activated. All other individuals with badge access to the restricted area of Receipt and Control must have RSTRK with Definer U activated on their IDRS profile or no IDRS access at all. See Exhibit 10.8.34-10, Restricted Command Codes for Roles: SB/SE Headquarters Analysts (who require command code ESTAB), 809 Receipt Book Users, and Submission Processing employees that issue, verify, or reconcile blank Form 809 (RSTRK Definer R), for information on restricted command codes.

(1) Management uses the Deposit Activity Report (DAR) and the Daily Deposit Report (DDR), to monitor the deposit activities and cash management practices. See IRM 3.8.45, Manual Deposit Process, for specific procedures.

(1) The deposit function is required to report total dollars and items deposited to National Office on a daily basis. Periods exist when it is necessary to work weekends to meet the deposit requirements or to meet the program completion date (PCD). See IRM 3.8.45, Manual Deposit Process, for specific reporting procedures.

(1) When it is necessary to work a holiday, include the dollars and items deposited on the holiday in the next business day's deposit report. See IRM 3.8.45, Manual Deposit Process, for specific reporting procedures.

(1) Immediately report a loss, theft or inadvertent, unauthorized disclosure of sensitive information/PII to your manager and to the Office of Privacy, Governmental Liaison and Disclosure(PGLD) via the, PII Breach Reporting Form located at, https://etrak7.web.irs.gov/etrak-privacy/page.request.do?page=page.final2 The scope of the reporting form includes packages lost in shipment, lost/stolen hardcopy records/documents, verbal disclosures and all other non-correspondence related events of inadvertent unauthorized disclosures. Report the loss or theft of an IRS IT asset or an asset in the Bring Your Own Device (BYOD) program to the IRS Computer Security Incident Reporting Center (CSIRC). Report incidents involving a loss or theft of an IRS IT asset or non-IRS IT asset (BYOD device), e.g., computer, laptop, router, printer, removable media, CD/DVD, flash drive, floppy, etc., or a loss or theft of hardcopy records containing sensitive information/PII to TIGTA at (800) 366-4484.

(2) Refer to IRM 10.5.4.3.3, Inadvertent Unauthorized Disclosures and Losses or Thefts of IT Assets and Hardcopy Records/Documents, for the reporting requirements for an inadvertent unauthorized disclosure of sensitive information, or the loss or theft of an IRS IT asset or "BYOD" asset or hardcopy record or document containing sensitive information, etc., for more information and guidance. You can also find incident-reporting guidance in the Disclosure and Privacy Knowledge Base, at https://portal.ds.irsnet.gov/sites/vl003/Lists/ReportLossesTheftsDisclosures/LandingView.aspx, or on IRS Source in the upper middle under Incident Reporting, then Data Protection.

(1) Campuses' commercial depositories are selected for a specified period with two one-year renewal options. They are chosen through a competitive bid process initiated by IRS and directed by the Treasury Department, Financial Management Service (FMS). See IRM 3.8.45, Manual Deposit Process, for more information.

(1) All campuses must have a licensed/bonded or armored vehicle courier service to BancTec deposits to their designated depositary. See IRM 3.8.45, Manual Deposit Process, for specific requirements.

(1) Follow the regular Manual Processing procedures under each document /return type for deposit items not processed through ISRP. See IRM 3.8.45, Manual Deposit Process, for specific information.

(1) All Users (except TMS Track Users-ISRP Domain, and RP Batch Scheduler DS Domain), must include the following information in the BEARS Previous Special Instruction field:

• User ID: (such as the User’s SEID. Example bxxxx)

(2) TMS Track Users - ISRP Domain, must include the following information in the Business Entitlement Access Request System (BEARS) Previous Special Instruction field:

• User’s SEID

• User Code: (such as tm67 or tm-id assigned by the site manager)

• User’s Group: Track User

(3) For RP Batch Scheduler DS Domain users, include the following information in the BEARS Previous Special Instruction field.

• User SEID

• State, “requesting regular PROD SCHED REMIT BATCH USER profile”

(1) When requesting access to an application use the table in IRM 3.8.44.3.2(3), below to determine the correct sub-application you need to access. The table shows the Receipt and Control Operation, types of users under Remittance Processing (RP), and the corresponding sub-application for each site. Make sure you select the correct sub-application for your site.

(2) Following is a list of abbreviations for each site used throughout the Sub-Applications Table:

• Austin - AUSC

• Kansas City - KCSPC

• Ogden - OSC

(3) The following table provides a list of BEARS Sub-Applications for Receipt and Control Remittance Processing (RP). The table has three columns. The first column lists the Role of the User. The second column shows the BEARS sub-application name. The third column states the access level.Table of Business Entitlement Access Request System (BEARS) Roles, Sub-Application Names, and Access Levels

(1) Each campus MUST establish local procedures for controlling source documents and remittances throughout payment processing. However, the source documents must remain in searchable order until the completion of the correction and balancing processes.

(2) After the deposit is balanced and released to the depository, each campus coordinates local procedures for routing and distributing the source documents.

1. Pull all unsigned returns and batched separately. Label transmittal "Unsigned Returns" edit return with "R" or "$" in the upper left corner using green pen and hand carry to Extraction.

(3) Destroy (classified) source document paper, excluding actual IRS returns, IRS forms and other correspondence or items that do not require pipeline or stop mail handling 5 business days after the deposit date. Some examples of items subject to destruction as classified waste include:

• Paper vouchers and notices

Note: If the payment voucher or notice has an address change notated, route to Entity after the payment has been processed.

• Envelopes received with a check only

• Simple correspondence that requires no further handling

• Form 4868 or IRS forms that require no further handling or processing and do not bear a taxpayer signature

(4) Stage items within the Deposit function.

(5) Prior to disposal, source document paper must be reviewed/fanned through to ensure no mis-sorted items remain in the bundle.

(1) The RPS Pre-Batch/Clerical function is responsible for finalizing the sort of remittances and related source documents and preparing/associating correct control documents for each type of deposit for the Payment Perfection function and the OE/KV function. Although the pre-batch functions may be physically separated, the procedure for preparing and controlling work must be the same for both Payment Perfection and OE/KV.

(2) Pre-Batch/Clerical is responsible for reviewing each sort to eliminate any mis-sort condition by spot checking the batch, and for entering information on Batch/Block Tracking System (BBTS).

(3) BBTS is a comprehensive integrated batch creation and tracking system used to generate unique block headers, including the six-digit Remittance Processing System Identification (RPSID) number, and other identifying batch information.

(4) The Form 1332C, Block Selection Record (Block Header), contains batch information, such as RPSID, tax period, MFT, etc., that is entered by OE/KV operators for generation into individual tax records. Based on the type of source documents, enter information into BBTS by program code, RPSID, transaction code, MFT, tax period, and transaction received date. See Exhibit 3.8.44-19, Pre-Batch/Clerical Preparation of Form 1332C, Block and Section Record.

(5) After the batch information is entered into BBTS, BBTS assigns an "ABC" to the batch of work, generates and prints Form 9382, Pre-Batch Transmittal. See Exhibit 3.8.44-21 Pre-Batch/Clerical Preparation of Form 9382, Batch Transmittal, and Form 1332C, Block Selection Record (Block Header).

(6) The Form 9382, Batch Transmittal, is used by the OE/KV operators to sign out individual batches of work for original entry and key verification.

(7) Form 11355, Batch Header, is associated with each batch of work. The RPSID is pre-printed on the left margin of the Batch Separator in a 1-D barcode for recognition through the BancTec Scanner. The RPSID is also located in the upper right margin of the Batch Header. Also, associate the correct Batch Header, Forms 11356 with scannable vouchers and remittances, that by-pass OE/KV, and process directly on the BancTec Scanner.

(8) For each batch of work, to control the source documents and remittances throughout payment processing, associate and place with the batch work prior to OE/KV, Form 11355, Batch Separator, pre-printed with the RPSID, and Form 1332C, and the Block Selection Record (Block Header).

(1) On a daily basis, the Lockbox site(s) forwards a shipment of work to their respective campus, which includes unprocessable remittances. The sites receive these shipments in a tamper proof bag(s). The Deposit Clerical area performs the following steps.

1. Verify the bag is sealed and not opened, sliced, torn or any manipulation that would question the integrity of the bag(s).

2. Verify the "alpha numeric" digits printed on the bag(s) match the information recorded on the LDT.

3. Initial the LDT in the "Received" column next to the "With-Remit Unprocessables/Rejects".
   

   Note: It is not necessary to manually count the enclosed remittances contained in each labeled bundle. However, contact your Lockbox Field Coordinator (LFC) immediately if the bag is not sealed, alpha/numeric entries do not match, or there appears to be an obvious error in the volume of remittances. For example, header/cover sheets state the volume to be 20 remittances and the actual volume received is 5.

4. Initial the Acknowledgement page in the correct fields, whether all is correct, or you had to notify the LFC of any discrepancy,

5. Sign and date at the bottom of the Acknowledgement page.

6. Fax or e-fax a copy of the signed Acknowledgement (Page 1) back to the Lockbox site daily, not later than (NLT) 2:00 p.m. local time. For more information on EEFax, see Home - Enterprise Electronic Fax (EEFax) (irsnet.gov)

   Note: If multiple areas receive and verify the work, for example: Extraction, Batching, and Cashiers, establish a system to ensure the faxing of all Acknowledgement pages to the Lockbox occurs daily.

(2) The Deposit area is to retain all pages (copy of Page 1 and all "detail pages") of the LDT for your files in chronological order. A managerial review must be performed monthly to ensure IRS acknowledged all to the Lockbox. This is a separate review from the monthly report you provide to your Lockbox coordinator. Keep a log sheet of the managerial review along with the transmittal retention copies and indicate name of reviewer, date and comments. Comments must include your findings of the managerial review. For example, 22 transmittals reviewed; 2 not signed, 1 missing date and time of faxed transmittal. If the reviewer does not find errors during the review, state, "No errors found". Retention period for the LDT transmittals is one year.

(3) Review the following items when conducting a managerial review:

• Transmittals faxed (employee initials, date and time faxed).

• Transmittals signed.

• Proper changes were made to any discovered discrepancies on the transmittal.

• Lockbox field coordinator notified of any discrepancies.

(1) Sort all remittances delivered to the Pre-Batch/Clerical function, from Extraction by type of tax and form number.

1. MAINTAIN ALL SORTS from extraction, such as Individual Master File (IMF), Business Master File (BMF), Full Paid, Part Paid, Timely, Delinquent, etc.

2. Extraction function delivers Perfect items directly to Pre-Batch/Clerical. Returns/documents containing:
   Legible or barcode masked Taxpayer Identification Number (SSN or EIN)
   One name control
   One Business Name for BMF
   Individual Name for IMF (a secondary name, such as a spouse, may be present. The surnames do not have to match.)
   One Remittance
   One MFT Code or Form
   One Tax Period or multiple (see exception below)
   Exception: Consider all notices, excluding Form 668 series (see Imperfect Items below), with multiple tax periods as perfect if all other criteria is met. Apply the payment to the oldest listed tax period.
   As applicable, one or more of the following: three-digit plan number (Form 5330, Form 5500 series, Form 5558 only), report number (Form 8038-T, Form 8038-CP), DPC, secondary code/money amount, tertiary code/money amount.
   Consider checks and envelopes perfect when the "perfect" criteria are met.

Note: For more information on Perfect Items see IRM 3.8.45.5.14, Perfect Returns or Documents.

3. Imperfect items consist of source documents and remittances that do not meet the criteria of a "perfect". They include incomplete items, illegible items, attached correspondence, split remittances, etc. These items must be researched and/or perfected by the Payment Perfection function prior to release to the Pre-Batch/Clerical function or deposit processing via InfoConnect.
   Installment Agreements, Levies and Garnishments.
   If there is an indication the payment is a levy or garnishment received with Form 668 series or written words such as automated collection system, ACS, levy or garnishment abbreviations or similar statements, process the payment as imperfect.
   If there is an indication the payment is for an installment agreement received with Form 433-D, Form 2159, Form 9465, or written words such as installment agreement, installment payment, payment plan, monthly payment or similar statement, process the payment as imperfect.

4. Whenever possible, process Internal Revenue Code (IRC) 965 installment payments in RPS. IRC 965 payments usually have the following verbiage indicated on the paper check memo, or in the top margin of one of the tax forms listed below: IRC Section 965, Section 965, 965, 965h, 2017 965 Tax, or similar statement.
   Form 990-PF
   Form 990-T
   Form 1040
   Form 1041
   Form 1065
   Form 1120
   Form 1120-C
   Form 1120-L
   Form 1120-PC
   Form 1120-POL
   Form 1120-REIT
   Form 1120-RIC
   Form 1120-S

(2) To the extent possible, combine small groups of like source documents to create larger batches of work. To maximize batch volumes, different types of work, may be input under a single program number not designated for their specific use. For example, IMF and BMF payments of all types may be entered under program 45500. However, you must input the MFT code and other differing fields for each transaction as they change. Processing work in this manner is acceptable and preferred since the Integrated Submission and Remittance Processing (ISRP) program number is not output to other systems.

(3) Non-scannable vouchers must be sorted by MFT when a batch contains different MFT’s from the batch header. Edit the MFT when it differs from the batch header.

(4) Sort Splits and Multiples separately from all other types of work.

(5) Maintain the FULL PAID/Other Than Full Paid (OTFP) sorts for Form 1040, Form 1040A, Form 1040EZ and Form 1040PC throughout payment processing.

(6) Route Form 940V, Form 940VEZ, Form 941V, Form 943V, Form 945V, Form 1040ES, Form 1040V, Form 1041ES, Form 1041V, and Form 2290V preprinted, scannable payment vouchers directly to the BancTec Scanner for processing.

(7) Sort scannable vouchers and notices by scan line position. Place the remittances behind the vouchers or notices before delivery to the BancTec Scanner for processing.

(1) RPS Pre-Batch is prepares the work for input into the Remittance Processing System (RPS). The clerks perform the following activities:

1. MAINTAIN ALL SORTS from extraction, such as IMF, BMF, Full Paid, OTFP, Timely, Delinquent, etc.

2. Remove check stubs and staples from remittances, if still present, before forwarding to RPS function.

3. Batch returns/documents by current, prior, fiscal year, and/or full paid, and/or part paid.

4. Create batches of work for OE/KV input.

5. Combine small groups of like source documents to create larger batches of work, by combining MFTs. When combining MFTs, keep like MFTs together in a batch. See Exhibit 3.8.44-20, MFT Codes Combined for Batching.

6. Primary transaction code work can be combined under the correct program number, like MFTs. See Exhibit 3.8.44-46 Master File/Non-Master File Processing Form /Program Processing Table.

7. Review batches of work to prevent mis-sorted returns or items that must be pulled from processing so it can be re-batched correctly.

8. Input information into BBTS to generate and print batch transmittals and block headers.

9. Use the RPSID to match the block headers and batch separators to complete the assembly of a batch of work.

(2) Batch work by RPSID range according to their source of origination for timeliness tracking on Remittance Transaction Research (RTR) as follows:

1. Pre-Batch/Clerical Unit controls the supply of pre-printed batch separators.

2. Pre-Batch/Clerical Unit maintains supplies of blank (blue) batch separators and the pre-printed (blue) batch separators.

3. Maintain a logbook for each RPSID range (category). Log the series of numbers used for each category. This allows the user to monitor RPSID category usage and to know the next range to use for a particular category.

(3) Use BBTS to generate and print the Forms 9382, Batch Transmittal, and Forms 1332C, Block Selection Record, for RPS input, keeping track of the ABCs and RPSIDs to prevent duplication. Use the following Exhibits for preparing the work and entering information into BBTS.

1. Exhibit 3.8.44-28, Masterfile/Non-Masterfile Forms/Program Table.

2. Exhibit 3.8.44-27, Program Codes for RPS Table.

3. Exhibit 3.8.44-20, MFT Codes Combined for Batching.

4. RPSID Ranges listed above.

(4) Preparing work and entering information into BBTS.

1. Enter the information into BBTS that relates to the batch of work, including the RPSID, tax period, transaction code, transaction received date (actual date IRS received the work), MFT, etc.

   Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

2. Use the RPSID on Form 11356, Batch Separator, for BBTS.

3. Indicate the number of block headers needed for each type of work.

4. Associate the printed Forms 1332C (block headers) with the Forms 11355 (batch separators) using the six-digit RPSID (printed in the DLN area of the block header), and comparing it to the RPSID on the batch separator.

5. Attach the batch separator to the block header and place both on the proper batch of work.

(5) Once the association of the block headers, batch separators, and batch transmittals with the work for RPS processing is complete, the RPS Pre-Batch/Clerical clerk routes the work to the OE/KV function.

(6) The following scannable vouchers and notices must be sorted by scan line position and delivered directly to the BancTec Scanner for processing. Place the remittances behind the vouchers or notices before delivering to the BancTec Scanner:

• Balance due notices

• Form 940V, Form 940VEZ, Form 941V, Form 943V and Form 945V

• Form 1040ES, Estimated Tax for Individuals

• Form 1041ES, Estimated Tax for Trusts and Estates

• Form 1040V

(7) Several source documents require other actions for the payment to be posted correctly or the source documents to be routed correctly. There may be other source documents not included in the following that require more instructions for routing. In those situations, refer to local procedures for more information on proper routing.

1. DATC–ASTA Letters. Place in a colored folder for routing to DATC–ASTA function

2. CP 2000, Request for Verification of Underreportered Income, Payments, or Credits. Place in a colored folder for routing to Underreporter function

3. Block CP 2501, Initial Contact to Resolve Discrepancy Between Income, Credits, and/or Deductions Claimed on Return & Those Reported by Payer separately from CP 2000. Place in colored folder for routing to Underreporter function

4. Exam

5. Collection

6. WPT

7. ALS

(1) Types of possible remittances the IRS may receive can include any of the following.

• Personal Check

• Money Order

• Cashier Check

• Cash - refer to Payment Perfection technicians

• Business Check

• Certified Check

• Voucher Check

• Treasury Check

• Draft/Postcard Type Check

• Irregular Checks, see IRM 3.8.45, Manual Deposit Process

• Foreign check drawn on U.S. dollars

(2) The remittance must remain with its source document; do not staple together. Prior to processing, check stubs and any staples must be removed.

(3) If payee is IRS only, CASH, or blank, stamp United States Treasury on payee line. See IRM 3.8.44.6.2, Remittance Not Payable to United States Treasury.

(4) When processing remittances intended as payment for photocopies of tax returns, refer to IRM 3.8.45, Manual Deposit Process.

(5) When processing a taxpayer's returned refund check, refer to IRM 3.8.45.5.19, Returned Refund/Rebate Government Checks for Payment of Taxes.

(6) For processing Travelers Cheques, follow the instructions provided in IRM 3.8.45, Manual Deposit Process.

(7) Foreign checks may be processed through RPS when payable in US dollars through a US bank. The US bank's routing symbols and a nine-digit routing number must be printed in Magnetic-Ink Character Recognition (MICR) ink in the lower left corner of the check. If the check fails to meet any of these conditions, route to Manual Processing.

(1) If remittance is not made payable to the United States Treasury or one of the acceptable payees listed below, pull the remittance and source document and route to the Payment Perfection Unit.

(1) Mutilated remittances may not be accepted by financial institutions. See IRM 3.8.45, Manual Deposit Process, for specific procedures.

(2) Totally blank remittances must be forwarded to Payment Perfection. A partially complete remittance may be processed, whether signed or not, if the money amount can be determined. As needed, follow the steps listed below to determine the money amount to use for deposit processing.

(3) Use the numeric amount on the remittance for processing unless there is an amount annotated above the remittance date line. When present, use this money amount for processing. There may still be times when the money amount to use is questionable. Use the following table to determine the payment amount:

(4) Process a canceled check as follows:

(5) Seized checks may be processed with proper endorsement. If in doubt or if the endorsement is missing, route to Payment Perfection.

(6) Do not process remittances of $100 million or greater through RPS. Give the remittance and related source material to your manager or designee, who is required to hand carry the item to Payment Perfection.

(7) Unacceptable Payment of Taxes consists of items the Federal Reserve Bank does not accept as payment. Hand carry any of the following items found in the Payment Perfection Unit to the Extraction Function to secure in a locked safe:

• Actual Currency

• MoneyGram Receipts

(8) Forward a remittance found, with or without a source document, within the work area to the designated Deposit Unit personnel or pull-out cart.

(1) Campuses receive questionable remittances that resemble checks and money orders. In most cases, these remittances show the taxpayer and the "United States Bureau of Internal Revenue" as payees. The bogus remittances may include other identifying characteristics. See Exhibit 3.8.44-1, Bogus Check. DO NOT PROCESS ANY REMITTANCES CONTAINING THE FOLLOWING CHARACTERISTICS:

• Unusual or no financial organization names

• Monetary instruments printed on check quality paper or photocopying paper

• Monetary instruments that reference 31 USC 371

• No bank routing information (All American checks have a nine-digit number surrounded by symbols |:|:,e.g., |:123456789|:.)

• A lien number

• The words "Certified Bankers Check", "Public Office Money Certificate", or "Certified Documentary Draft", "Lien Draft", "Certified Money Certificate", and "Comptroller Warrant"

(2) Sites receive the majority of the bogus remittances by certified or registered mail. The bogus remittance may include the following documents:

1. A letter requesting a refund for overpayment or the taxpayer renouncing their U.S. citizenship.

2. Several bogus checks received include a document titled, WARRANT PROCESSING PROCEDURES. THIS IS NOT A LEGAL OR VALID DOCUMENT. DO NOT PROCESS A REMITTANCE BECAUSE IT IS ATTACHED TO THE WARRANT PROCESSING PROCEDURES. See IRM 3.8.45, Manual Deposit Process.

(3) Upon receipt of a suspicious remittance, process using the following procedures:

1. Avoid removing evidence, such as lifting finger or palm prints. Handle the remittance, envelope, and any correspondence as little as possible. Place remittance in check saver.

2. Immediately contact your manager and the Questionable Refund Coordinator in the Treasury Inspector General for Tax Administration (TIGTA) at your Campus if there is any doubt about the legitimacy of a particular remittance.

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

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

5. In the event the Fraud Detection Center chooses not to pursue the matter, the manager coordinates with the Payment Perfection Unit to return the suspicious remittance to the taxpayer.

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

(5) Do not accept or process a check not drawn on banks and domestic building and loan associations incorporated in the United States and must contain magnetic encoding. IRS personnel cannot accept a check when it is a known fact that the bank or financial institution does not exist. (Banks closed for one reason or another and did not merge with another financial institutions.)

(6) A sight/site draft (a form of check negotiable through commercial banks) requires a service charge to process. This fails Treasury Regulation's 301.6311–1 only if there is no deduction for exchange or other charges.

(7) Non-legal negotiable remittances include: A Lien Draft, Certified Bankers Check, Public Office Money Certificate, Certified Documentary Draft, Comptroller Warrant and/or Certified Money Certificate. The Internal Revenue Service cannot accept these items.

(8) Remember to immediately contact the Questionable Refund Coordinator in the Fraud Detection Center in your Campus upon receipt of a bogus or questionable remittance.

(1) Pre-Batch/Clerical unit receives perfect and imperfect remittances and their related returns/documents on a regular basis.

(2) Perfect returns/documents are batched directly for RPS data entry. Consider an item "Perfect" when the transaction information includes a legible taxpayer name, TIN, one MFT code, at least one tax period (accept multiple tax periods on notices other than Form 668A and Form 668W. The oldest tax period listed is the one processed for the payment.), and one remittance. As applicable, one of the following is required: plan number (Form 5330, Return of Excise Taxes Related to Employee Benefit Plan, Form 5500 series, Annual Return of A One Participant (Owners and Their Spouses) Retirement Plan and Foreign Plan, and Form 5558, Application of Extension of Time to File Certain Employee Plan Returns, only), one report number (Form 8038-T, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate, and Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds), Designated Payment Code (DPC), secondary code/money amount, tertiary code/money amount. See IRM 3.8.45, Manual Deposit Process, for specific procedures.

(3) Scannable work (voucher with a scanline and associated remittance following, is considered perfect and is delivered to the BancTec Scanner area directly by the Extraction unit.)

(4) Imperfect source documents and remittances consist of items that do not meet the criteria of a "perfect". They include incomplete items, illegible items, attached correspondence, or split or multiple payments. The Payment Perfection Unit researches and secures missing information and inputs the transaction via InfoConnect or routes it to Pre-Batch/Clerical for batching to RPS. If discovered in a batch, pull the item and route to the Payment Perfection Unit.

(5) If the remittance amount associated with a timely filed return is under or over the balance due amount, then process the payment as Other Than Full Paid (OTFP). If received with a delinquent return, regardless of whether the remittance matches the balance due line, process as OTFP.

(6) Prepare a payment posting voucher or equivalent whenever a source document is not available and the payment is not processable through RPS. A list of payment posting vouchers follows:

• Form 3244, Payment Posting Voucher, see Exhibit 3.8.44-16, Form 3244, Payment Posting Voucher, Designated Payment Code (DPC) Present (TOP) and Not Present (Bottom).

• Form 809, Posting Vouchers.

• IDRS Printout used in lieu of Form 3244, Payment Posting Voucher, see Exhibit 3.8.44-6, IDRS Printout and Envelope Used as a Source Document.

• Correspondence, see Exhibit 3.8.44-8, Use of Taxpayer Correspondence as a Source Document.

• Form 4907, TDA/Taxpayer Delinquent Account, see Exhibit 3.8.44-17, Form 4907, Designated Payment Code Present (TOP) and Not Present (Bottom).

• Envelope, see Exhibit 3.8.44-6, IDRS Printout and Envelope Used as a Source Document, and Exhibit 3.8.44-15, Automated Collection System (ACS) Printout and Envelope Used as Source Document.

(1) The following table lists the tools and supplies needed to clean the BancTec Scanners. The first column lists the Description and the second column shows the corresponding number for the item listed in the Description column.

(2) DO NOT spray any cleaning solution directly on the BancTec Scanners. Instead, spray the cleaning solution on the lint free cloth, then clean the desired area or item.

(1) Before cleaning and daily processing, perform the following tasks.

1. Clear the scanner work service. Remove any documents from the auto feeder.

2. Remove any paper clips, staples, or paper from the work area.

3. Remove any documents in the paper path.

4. Inspect the paper path and remove paper clips, staples or paper.

5. Clean off any ink or dirt using the Simple Green wipes.

(1) Follow the instructions provided in this subsection for cleaning of the Auto Feeder, Aligner Module, Reader Module, Control Point Module, Image Module, and Stacker Modules. To avoid blowing debris into clean areas of the BancTec Scanners, perform the vacuuming tasks prior to beginning cleaning of the belts and other parts.

(2) Do Not spray any cleaning solution directly on the BancTec Scanners. Instead, spray the cleaning solution on the lint free cloth, then clean the desired area or item.

(3) Follow the instructions provided in the BancTec IntellisScan XDS IntelliScan Operator Guide provided by Leidos for maintenance and cleaning procedures.

(1) The purpose of the Free/Missing Entry Function is to match checks processed through the BancTec Scanners to their records not matching in the electronic file from OE/KV during the Merge process. The Free and Missing Reconciliation screen displays as much information available to allow matching of the checks to their electronic records.

(2) The top right portion of the screen displays a list of "free" checks that do not have an exact match in the electronic file. The list includes sequence number, amount, and match status. Select a check by pressing F8 or clicking the "free item" button at the bottom of the screen. Use the up and down arrow keys to scroll through the list. As the check is selected, its image is displayed on the top left portion of the screen.

(3) The bottom half of the screen displays the "missing" records from the electronic file that do not have an exact match from the items ran through the BancTec Scanners. The item, transaction number, amount, and the scanline information display for each item, along with the match status. Select an item from the list by pressing F7, or clicking the "miss item" at the bottom of the screen. Use the up and down arrow keys to scroll through the list.

(4) After selecting a "free" check and its associated "missing" electronic record, press F3, or click the "match" button at the bottom of the screen to indicate a match. The match status in the upper part of the screen is updated to YES. The match seq column in the bottom part of the screen is updated with the sequence number from the matched item. The match sequence column in the voucher record in the same transaction is set to YES.

(5) Delete any unmatched items. Once matching and deletion of all free and missing items in the batch is complete, the next batch requiring Free/Missing matching is presented.

(6) To delete an entire transaction from the "missing items", press F4, or click the "Delete Miss" button at the bottom of the screen. A confirmation screen appears. Click "yes" to delete the entire transaction containing the highlighted item. Click the "no" button for the transaction to remain.

(1) Scanline Fix is used to correct any "misreads" or "can't reads" in the scan line and the Magnetic-Ink Character Recognition (MICR) line of the check.

(2) Only items with bad scan lines present for correction. If a transaction is presented in scan line fix, it must be corrected before performing further data entry on the particular voucher.

(3) When the Scan Line fix option is selected from the Data Entry Menu, the first transaction requiring correction appears in the scan line fix screen. Only those items that have required fields with errors display for correction.

(4) The scanline fix program highlights the first required field containing a "can't read" when the scan line or MICR line is initially displayed. If by chance a field is highlighted and it is not immediately obvious which field is in error, press F10, or Enter to accept the field information.

(5) Use the stub or check image to determine the correct value of the field that requires correction.

1. To change an already existing number, use the right and left arrow keys to move the highlighting to the unreadable character. The unreadable characters appear as question marks.

2. The TAB key is used to go to the next field to the right; SHIFT TAB moves to the next field to the left.

3. Enter the correct character in the field and press ENTER to record the number.

(6) Reject unmatched barcode masked Taxpayer Identifying Numbers and scanline Check Digits that cannot be resolved.

(7) When the last item requiring correction is complete, the next transaction is prompted.

(8) Several functions display at the top of the screen to assist you.

1. F4 rejects a transaction to allow for separate processing. Before a transaction is rejected, a confirmation window appears.

2. F6 used to turn the image of a stub right side up, if for some reason the image appears upside down.

3. F7 used to change the type of item on the screen from check to stub or vice-versa. Press ENTER to change the item type, and the scan line fields applicable to the new item type appears on the screen below the image. Press ESC to keep from changing the type image.

4. F9 exits from Scanline Fix and returns to the Data Entry Menu. A Confirmation window appears to make sure you really intend to exit.

5. F10 accepts the field information as is.

6. F12 flushes the system of all worked transactions. Use prior to exiting a correction function and transactions still remain that require correction. For example, you exit a function when leaving your workstation for a work break.

(1) Transactions with a voucher that does not contain an amount in the scan line presents in Stub Amount Entry for correction.

(2) When Stub Amount Entry is selected from the Data Entry Menu, the Stub Amount Entry screen displays with the first transaction requiring a stub amount entry. The Stub Amount Entry screen contains the stub (voucher), the CAR amount, and the amount entry field.

(3) Enter amounts for vouchers not containing an amount in the scanline. The upper portion of the screen displays the image of the voucher. Below this image is a magnified view of the area of the voucher that contains the amount. A field is provided to enter the amount, verify the stub amount and enter the correct amount in the amount enter field. When the entry is complete, press F10, or Enter.

(4) If there is no money amount on the voucher, and you cannot determine the money amount, press ALT F5. This displays the check and the voucher on the View Transaction screen. The View Transaction screen allow for viewing of the transactions, you cannot change a transaction. Press F9 to return to the Voucher Amount Entry screen and enter the amount of the check. If, after going to the View Transaction screen, you cannot determine the amount, enter .01 or skip the voucher. This causes the voucher to proceed to the Balancing function.

(5) Following is a list of functions available in the Stub Amount Entry screen:

1. F2 displays the image of the previous item.

2. F4 rejects an item. Before an item is rejected, a confirmation window appears.

3. F5 displays the check and the voucher images for the transaction on the View Transaction screen.

4. F6 displays the Manage Image Menu which allows you to zoom (enlarge), rotate, or flip the image of the currently active check.

5. F9 exits from the Check Data Entry screen. A confirmation window appears to make sure you really intend to exit.

6. F10 or Enter accepts the amount entered.

7. F12 flushes the system of all worked transactions. Use prior to exiting a correction function and transactions still remain that require correction. For example, you exit a function when leaving your workstation for a work break.

(6) The View Transaction screen has its own function keys.

1. F7 highlights the amount of the displayed voucher. The transaction is viewed here; you cannot change the amount. Use the Voucher Amount Entry screen to make any necessary changes.

2. F8 highlights the amount of the displayed check. As with vouchers, you cannot change the amount on this screen.

3. F9 exits the View Transaction screen and returns to the Voucher Amount Entry screen.

(1) If the BancTec Scanner cannot read the check amount, the transaction presents in to Check Amount Entry.

(2) When Check Amount Entry is chosen from the Data Entry screen, the Check Amount Entry screen displays with the first transaction requiring check amount correction.

(3) The upper portion of the screen displays the image of the check. Below the image is a magnified view of the check area that shows the amount. Enter the amount and press F10 or ENTER. When F10 or Enter is pressed, an error message is displayed for any required fields left blank. Press ENTER to remove the message and return to the previous screen.

(4) If you cannot determine the amount of the check, enter .02 or reject the item using F4.

(5) Following is a list of function keys available in the Check Amount Entry screen:

1. F4 rejects an item, along with the rest of the items in the transaction. Before an item is rejected, a confirmation window displays.

2. F5, View Transaction, displays the check and voucher for the transaction.

3. F6 allows the user to zoom (enlarge), rotate, or flip the image of the check.

4. F9 exits the Check Amount Entry screen.

5. F10 accepts the amount entered.

6. F12 flushes the system of all worked transactions. Use prior to exiting a correction function and transactions still remain that require correction. For example, you exit a function when leaving your workstation for a work break.

(6) The View Transaction screen has its own function keys.

1. F7 highlights the amount of the displayed voucher. This function is for viewing of the amounts only, it does not allow for changing of the amounts.

2. F8 highlights the amount of the displayed check. This function is for viewing of the amounts, it does not allow for changing of the amounts.

3. F9 exits the View Transaction screen and returns to Check Amount Entry.

(1) Process unbalanced transactions through the Balancing function from the Data Entry Menu.

(2) Only unbalanced transactions present for balancing.

(3) When the Balancing option is selected, the Balancing screen displays with the first unbalanced transaction requiring balancing.

(4) The voucher and check amount for the transaction display along with the images of the paper items. When necessary, correct the amounts of the vouchers and checks to balance the transaction.

(5) Following is a list of options available in the Balancing function:

1. Delete an item from the transaction

2. Insert an item into the transaction

3. Delete the entire transaction

(6) The transaction is checked for balance when Enter or F10 is pressed. If an amount is zero, that zero is highlighted when Enter or F10 is pressed. When the transaction balances and passes all amount validations, the transaction is posted, and the next unbalanced transaction is displayed.

(7) If the voucher amount does not match the check amount, a Data Error Message displays (Transaction unbalanced). Press Enter to remove the message and return to the Balancing screen.

(8) If unable to determine the correct amount of the check using the imaged information provided on the "Balancing" screen, suspend the item to the Suspense Balancing function using function F5.

(9) When the last transaction is balanced, the next unbalanced transaction is automatically presented for balancing.

(10) The following functions are available for use in balancing:

1. F2 brings up the Transaction Summary.

2. F4 rejects a transaction to allow for separate processing. Before a transaction is rejected, a confirmation window displays.

3. F5 suspends a transaction to the Suspense Balancing function.

4. F6 displays the Manage Image Menu which allows you to zoom (enlarge), rotate, or flip the image. Shift F6 displays the image of the batch header.

5. F7 highlights the voucher amount of the currently displayed voucher.

6. F8 highlights the check amount of the currently displayed check.

7. F9 exits from Balancing.

8. F10 posts a transaction.

9. F12 flushes the system of all worked transactions. Use prior to exiting a correction function and transactions still remain that require correction. For example, you exit a function when leaving your workstation for a work break.

(11) Use the following key combinations to find a specific voucher or check in the Balancing program.

1. Ctrl-A - Allows the user to find a voucher in the current transaction by its amount. A screen is displayed in which the user can enter the amount for which to search.

2. Ctrl-C -Allows the user to find a voucher in the current transaction by its account number. A screen is displayed in which the user enters the account number for which to search.

3. Ctrl-S - Allows the user to find a voucher in the current transaction by its sequence number. A screen is displayed in which the user can enter the sequence number for which to search.

4. Ctrl-O -Allows the user to find a voucher in the current transaction by its amount. A screen is displayed in which the user can enter the amount for which to search.

5. Ctrl-Q - Allows the user to find a check in the current transaction by its sequence number. A screen is displayed in which the user can enter the sequence number for which to search.

6. For any of the above, when a match is found, the amount is highlighted in the voucher or check table. If a match is not found, an error message displays. Press Enter to remove the message and return to the previously highlighted item.

(12) Use the following key combinations to insert a check or a voucher in the Balancing program.

1. Ctrl-Insert inserts a check. An Enter Scan Line screen is displayed with blank fields according to the check scan line defined in the sort pattern. Fill in the applicable information and press Enter. The check table is highlighted to allow for entry of the check amount.

2. Shift-Insert inserts a voucher. An Enter Stub Line screen is displayed with blank fields according to the voucher scan line defined in the sort pattern. Fill in the applicable information and press Enter. The voucher amount in the voucher table is highlighted to allow for entry of the check amount.

3. Both screens have the same function keys available. F2 switches between displaying the blank fields vertically or horizontally. Set up either one as the default. F4 clears all fields, F8 cancels the insertion process, and F10 inserts the check or voucher. If any of the fields required by the sort pattern remain blank, a warning screen displays. Press Enter to remove the message and return to the previous screen. Then, fill in the required field, or cancel the insertion.

(1) All checks and/or vouchers suspended to Suspense Balancing display in the Suspense Balancing function. These transactions require research of the paper voucher or check.

(2) When the Suspense Balancing option is chosen the Batch Selection screen displays. After the batch number is selected the Balancing Screen displays.

(3) Using the paper voucher or check to verify information, follow the Balancing function procedures located in IRM 3.8.44.9.5, Balancing Function, to balance each transaction.

(1) Batch Schedulers and back-up Batch Schedulers must gain access to OTCnet. Your manager must submit the completed Form 15081, Over the Counter Deposit Reporting Network (OTCnet) User Authorization, digitally signed by their manager, to the local OTCnet Local Security Administrator LSA. IRM 3.8.47.26, Manual Deposit for Field Office Payment Processing, Obtaining User Access to Over the Counter Channel Network (OTCnet),

1. Complete Form 15081, to add users to CIRA ViEWER and VIEW REPORTS roles.

2. List the hierarchy on Form 15081, as follows:

Hierarchy List

Campus	Hierarchy
Austin Submission Processing Center	IRS AUSPC - Austin Submission Processing Campus ISRP AUSPC-ISRP Austin SPC-2009180001
Kansas City Submission Processing Center	IRS KCSPC - Kansas City Submission Processing Campus ISRP-KCSPC-Kansas City, MO 2009090003
Ogden Submission Processing Center	IRS OSPC - Ogden Submission Processing Campus ISRP OSPC-ISRP Ogden SPC-2009290026

(2) Once OTCnet permission is assigned, the employee receives three e-mails. The first e-mail provides the employee a user ID. The second e-mail provides the employee a temporary password, and the third e-mail provides the employee permission to OTCnet. After receiving a user ID and password, the employee must login to the TWAI to change their temporary password and provide answers to their secondary authentication questions.

(3) The user is allowed three consecutive attempts to enter a valid password. After the third attempt, the user is locked out and must answer pre-determined secondary authentication questions or call the Treasury OTC Support Center at (866) 945-7920 for validation of the user’s identity and reset of the password.

(4) Users must login to OTCnet at least once every 90 days or access is deactivated on the 90th calendar day since your last access date. For accounts not accessed within 120 days, accounts automatically deactivate on the 120th day from the last access date. Reapply for access if this occurs,

(5) If user access is no longer needed or if a user’s access needs modification, notify the LSA within 24 hours.

(6) Specific guidance for Deposit Preparers, Deposit Approvers, and Agency Viewers is provided in printable job aids found in the On-the-Job Resources and Simulations link at https://www.fiscal.treasury.gov/otcnet/training.html

(7) Should the site experience an OTCnet problem the site must contact their Local System Administrator (LSA), notify management, and notify your local Headquarters Analyst via e-mail. If OTCnet unavailability is a result of an IRS network problem the site must open an IRWorks ticket since the Treasury OTC Support Center cannot address an IRS network issue.

(1) The following training is required before using OTCnet.

1. New OTCnet Users - Must complete Modules 1, 2, 16, and 18.

2. Current Users - Must complete Modules 16 and 18.

3. Use the following link to access OTCnet training modules. https://www.fiscal.treasury.gov/otcnet/training/wbt/content/course_OTC/menu_all.htm

(1) Make several deposit cuts throughout the day, after every 45 - 50 batches.

(2) After each deposit cut, run a Deposit Cut Report, cut the batch, and process to OTCnet.

(3) Notify the Enterprise Operation (EOps) System Analyst (SA) when making a deposit cut. It takes about 30 minutes to process 45 - 50 batches through OTCnet. Checks and vouchers can continue to process through the scanners once a deposit cut is made.

(4) EOps SA transmits the deposit to OTCnet and sends the Batch Deposit Summary Reports to the Batch Scheduler through the Batch Scheduler’s printer.

(5) Batch Scheduler balances the Batch Summary and the Batch Deposit Summary Reports throughout the day.

(6) EOps SA keeps a running total of deposits transmitted throughout the day.

(7) At the end of the day, the Batch Scheduler balances the Batch Summary Reports and Batch Deposit Summary Reports. Money amounts must match.

(8) EOps SA’s can identify deposit file errors not seen by the Batch Scheduler.

(9) Batch Scheduler performs a CIRA query as soon as the final Batch Deposit Summary Report is received from the EOps SA.

1. Logon OTCnet.

2. Select the Check Processing tab.

3. CIRA query.

4. Search Criteria - Enter the following information: OTC endpoint (Site), ISRP, Site, CHK.

5. Several boxes appear. Enter today’s date into the Deposit Date. All deposit cuts display.

6. Print the package, scan the package and send to Accounting. Retain a hard copy for six months. After six months dispose of the copy as classified waste.

(1) Use the following steps to ensure the deposit is in balance before release of the deposit to the bank.

1. Make deposit cuts every hour and print the Deposit Cut report after each deposit cut is made. During peak periods make a deposit every 30 minutes.

2. Request the Deposit Summary report.

3. Throughout the day, compare the hourly Deposit Cut reports with the Deposit Summary report. The total volumes must match.

4. At the end of the day compare the total hourly Deposit Cut reports with the Deposit Summary report.

5. The following day view the prior day’s Deposit Ticket-215C on OTCnet and compare with the Deposit Summary report. The total volumes must match.

6. If the deposit does not balance, look for failed items. For research and resolution of failed items, see IRM 3.8.44.10.6, OTCnet Failed Items.

(1) RTR does not balance when failed items show on the deposit. If failed items appear, take the action shown below on the morning following the day of the deposit.

1. Login to RTR. https://rtr.web.irs.gov/rtr

2. Pull up the electronically failed item.

3. Click on the Notes button in the lower left of the RTR screen.

4. Add the verbiage “Failed transaction through ISRP. Processed Manually”.

(1) Check OTCnet daily for failed items from the prior day’s deposit, using OTCnet CIRA query.

1. Logon OTCnet.

2. Select the Check Processing Tab.

3. Select CIRA Query.

4. Scroll down to Settlement Status and select "Failed" from the drop-down menu.

5. Enter the deposit date or deposit date range in the Received Date section using the calendar feature.

6. To display the failed item(s), click on the IRN number and the failed item image appears.

7. Review the item and note the reason the item failed.

(2) Notify Accounting Dishonored Check function of the failed item(s) via e-mail using the group e-mail address for your site listed below. Use e-mail subject "Remove Failed Deposit Item from Tax Account mm/dd/yyyy." Use the deposit date for the mm/dd/yyyy. Send a separate e-mail for each deposit date. Do not include multiple deposit dates in one e-mail.Dishonored Check Group E-mail Addresses

1. Deposit Ticket Number

2. Deposit Date

3. IRN

4. Trace ID Number

5. Amount of the check

(3) Track all failed Items using the steps provided below.

1. Print the failed item from OTCnet.

2. Next to the failed item(s), notate the date of the e-mail sent to the Accounting Dishonored Check function.

3. File in a binder labeled “OTCnet Failed Items”. Store binder in a locked cabinet.

4. Send a follow-up e-mail to Accounting Dishonored Check function if you have not received a reply within three days of your initial e-mail.

5. If a response is not received from Accounting Dishonored Check within two days of your follow-up e-mail, contact your Deposit Headquarters Analyst.

6. Failed items stored within a retention box that meets all criteria for destruction except for any failed items, pull the check, notate on the Retention and Destruction Log the check pulled. Associate and retain the check with the printed copy of the failed item within the OTCnet Failed Items binder until notification is received from Accounting the reversal of the transaction on the taxpayer’s account is complete.

(4) Once an e-mail is received from Accounting Dishonored Check function indicating their action is complete, notate the reply date on the OTCnet failed item print, pull the check from the retention box and notate on the Retention and Destruction Log:

1. Check ID information

2. Check pulled

3. OTCnet failed

4. Brief reason the check failed OTCnet. For example: foreign, invalid RTN, non-negotiable.

5. Disposition of the pulled check. For example: re-deposited on MM/DD/YYYY, Route to Manual Deposit on MM/DD/YYYY for deposit or return to taxpayer.

(5) Take the proper action as follows.

• Duplicate Transaction (Check number used more than once by taxpayer) - Route check to Manual Deposit for processing.

• Failed - Examine the item to determine if the sleeve obscured the Magnetic-Ink Character Recognition (MICR) information. If able to re-run, then re-run through the scanner. If unable to reprocess through the scanner, then route check to Manual Deposit for processing.

• Foreign Check - Route check to Manual Deposit for processing.

• Invalid Routing Number - Route check to Manual Deposit for return to the taxpayer.

• Non-Negotiable - Route to Manual Deposit for return to the taxpayer.

• Suspected fraud - Contact your manager and follow the instruction located in IRM 3.8.44.6.4, Questionable Payments.

(1) Transaction Management System (TMS) Reports

• Batch Summary - Select Maintenance Menu, Double Click TMS Reports, Click Standard Reports Menu, Click Batch Summary Report, click Site DropDown box and click Check All, and Click Select, Repeat with Work Group and Work Source DropDown boxes, click Print Report and select your printer settings and print.

(2) Custom Reports - To access any of the reports below, Select Maintenance Menu, double right click on Custom Reports, then click on the desired report.

• RRPS General Fund Remittance Recap - Prints the report labeled P/R/F ISR/0546. Print only when copy fees were processed for that day. See Exhibit 3.8.44-33

• RRPS Refund Repayment Remittance Recap - Prints the report labeled P/R/F ISR/0548. Print only when Repayments were processed for that day. See Exhibit 3.8.44-31.

• Deposit Summary - Prints the report labeled P/R/F ISR/0551.

• Deposit Cut-off - Prints the reports labeled SF215A-C (REV 7-91), along with the following reports.
  Deposit Ticket - P/R/F ISR/0544. See Exhibit 3.8.44-41.
  RRPS Master File Remittance Recap Report - P/R/F ISR/0435. See Exhibit 3.8.44-30.
  RRPS Non-Master File Remittance recap Report - P/R/F ISR/0546. See Exhibit 3.8.44.34.
  RRPS Refund Repayment Remittance Recap Report - P/R/F ISR/0548. See Exhibit 3.8.44.31.
  RRPS General Fund Remittance Recap Report - P/R/F ISR/0547. See Exhibit 3.8.44.33.
  RRPS Deposit Fund Remittance Recap Report - P/R/F ISR0544. See Exhibit 3.8.44-32.
  Transaction Received Date Report - P/R/F ISR/0542. See Exhibit 3.8.44-40.
  General Ledger Account Number List Journal Total Report. See Exhibits 3.8.44-35 through 3.8.44-39.

• Transport Batch Status Report - Prints the report labeled P/R/F ISR/0440.

• Export Balance Report - Prints the report labeled P/R/F ISR/0841

• F4868 Volume and Money - Prints the report labeled P/R/F ISR/0552 - View the report and export to PDF only if Forms 4868 were processed during the day.

(1) Following is a table that lists the Form Number, Catalog Number, Form Title and RPSID Range for each Batch Header.Deposit Batch Header Tickets - Scanners

(1) After deposit and prior to storage, place all payment documents in a 16” x 9 1/2” x 4 1/2”, or similar size, deposit box, sealed, and labeled with the following information.

1. Settlement Date on the SF215, Deposit Ticket.

2. RPSIDs contained within the deposit box.

3. Projected shred date - 60 days from the SF215, Deposit Ticket settlement date.

4. Box number. For example: If five boxes of checks were processed in one day, label the box numbers as follows: Box 1 of 5, Box 2 of 5, Box 3 of 5, Box 4 of 5, Box 5 of 5.

5. Headquarter provided Label templates to each site. See Exhibit 3.8.44-43.

(2) Each site is responsible for the ordering of retention boxes and labels, and printing of the labels.

(3) Store all ECP payment documents in a locked cabinet located within the secured deposit area.

(1) Retain all ECP payment documents for 60 days from the SF215 deposit settlement date.

(2) Do not destroy documents until after the 60-day retention period is up and the Batch Scheduler has cleared all batches of the following

1. all .err files.

2. all missing batches.

3. failed items.

4. resolution of all failed items.

(3) Complete the Retention/Destruction Tracking Log Columns G - J.

1. Column G - Actual Destroy Date.

2. Column H - SEID of Destroyer

3. Column I - Manager Signature and Date.

4. Column J - Comments if required.

(4) Place ECP payment documents in large, secured locking bins for disposal with other Secured but Unclassified (SBU) material. Follow local procedures and coordinate with your local Facilities Management and Secured Services (FMSS) for placement and removal of the secured bins. See IRM 10.5.1, Privacy Policy, and ,IRM 1.15.3, Disposing of Records, for more information on destruction of Secured but Unclassified (SBU) material.

(1) When pulling a check from a stored retention batch for the Accounting function, notate the Batch ID and Sequence number in the Comments column of the Campus Deposit Retention/Destruction Tracking Log. For example, Pulled/Acct - Actual Batch ID & Sequence number.

(2) Complete the Campus Deposit Storage Pulled Check Log when pulling the check. Headquarters provided each site with a Microsoft Excel template of the Campus Deposit Storage Pulled Check Log. See Exhibit 3.8.44-52

(3) Pull the check, replace the check with a place holder, photocopy or scan the check as requested by your local Accounting function, place the original back in the slot from which you originally pulled the check, and remove the place holder.

(4) Complete the Campus Deposit Storage Pulled Log when returning the original Check to the storage box.

(5) Maintain the Campus Deposit Storage Pulled Log in a binder for three years.