3.17.220. Excess Collections File

(1) The Excess Collection File (XSF) is a separate file within IDRS containing non-Revenue Receipts which cannot be identified or legally applied.

(2) Each record within the file contains the XS control number, amount of credit, type of credit, received date and other identifying information, if known.

(3) The IDRS XSF reflects contents of Accounts 6800 and Account 9999 less than seven years and more than one year after the IRS-received date except in true statute cases, where it may be under one year.

(4) The file is also a rapid research tool used for payment tracer purposes by all areas of the IRS.

(5) The instructions contained herein are for processing non-revenue receipt credits which, for various reasons, cannot be applied to a taxpayer's account. Unless otherwise specified, the term:

1. Master File will apply to Business Master File (BMF) and Individual Master File (IMF).

2. Non-Master File will only apply to the NMF.

(1) The IRS mission is to provide 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.

(2) Standards for Internal Control in the Federal Government, GAO-14-704G sets the standards for an effective internal control system for federal agencies. Internal control is a process used by management to help achieve its objective. Management officials are responsible for:

1. Implementing effective internal controls related to the XSF.

2. Ensuring the instructions are communicated to and carried out by the employees.

(3) Internal Revenue Code IRC 6501, Limitations on assessment and collection.

(4) IRC 6511, Limitations on Credit or Refund.

(1) All employees must be aware of IDRS notice issuance criteria and the input of Command Code (CC) STAUP on a module if closing action cannot be accomplished before the next notice is issued.

(2) The number of cycles must be for a sufficient period to ensure that balance due notices will not be issued prematurely. CC STAUP will be automatically released after nine cycles without an open control base on the tax module. It may be necessary to extend the previously input STAUP if the transfer procedure is lengthy.

(1) Valid CC XSADD cases must be added to the XSF within five workdays of receipt in the Excess Collections function of Form 8758, Excess Collections File Addition. This procedure includes any action necessary to remove the credit from its previous location. See IRM 3.17.220.2.4

(2) All status code "OPEN" cases must be thoroughly researched to the same standard outlined for Unidentified Remittance cases in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Substantial efforts to attain this research standard must be initiated within two workdays of their addition to the XSF. See IRM 3.17.220.2.8.

(3) Valid CC XSAPL cases must be applied from the XSF within one workday of receipt in the Excess Collections function of Form 8765, IDRS Control File Credit Application.

(1) The following manual sections are frequently used in conjunction with this IRM or may be used as resources:

1. Document 12990, IRS Records Control Schedules

2. IRM 11.3.1, Introduction to Disclosure

3. IRM 11.3.3, Disclosure to Designees and Practitioners

4. IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria

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

6. IRM 3.17.30, SC Data Controls

7. IRM 3.17.41, Accounting and Operating Reports

8. IRM 3.17.63, Redesign Revenue Accounting Control System

9. IRM 3.17.79, Accounting Refund Transactions

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

11. IRM 3.17.243, Miscellaneous Accounting

12. IRM 3.17.277, Electronic Payments

13. IRM 20.2.4, Overpayment Interest

14. IRM 21.1.1.4, Communication Skills

15. IRM 21.1.3, Operational Guidelines Overview

16. IRM 21.2.4, Master File Accounts Maintenance

17. IRM 21.3.3, Incoming and Outgoing Correspondence/Letters

18. IRM 21.4, Refund Inquires

19. IRM 21.5, Account Resolution

20. IRM 21.6, Individual Tax Returns

21. IRM 21.7, Business Tax Returns and Non-Master File Accounts

22. IRM 25.6, Statute of Limitations

23. IRM 2.3, IDRS Terminal Responses

24. IRM 2.4, IDRS Terminal Input

25. IRM 2.9.1, Integrated Data Retrieval System

26. Document 6209, IRS Processing Codes and Information

(2) Other manuals which are helpful in program operations will be mentioned throughout the text.

(1) Taxpayer Advocate Service (TAS) has service level agreements (SLAs) with Wage and Investment (W&I), Small Business/Self Employed (SB/SE), Large Business and International (LB&I), Tax Exempt/Government Entities (TE/GE), Criminal Investigation (CI), and Appeals, to ensure that standards are established within the business operating divisions/functions to process TAS casework when the authority to complete transactions rests with the division/function.

(2) The SLAs are located on the TAS intranet homepage under the heading "Service Level Agreements."
( https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx Taxpayer Advocate Service - SLA (irs.gov)). See also IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

(3) Every taxpayer has a set of fundamental rights known as the Taxpayer Bill of Rights. For additional information, refer to https://www.irs.gov/taxpayer-bill-of-rights.

(1) The following is a glossary of terms:

(1) As of January 1, 2008, all credits and payments were assigned a Trace ID Number for tracking purposes. The Custodial Detail Data Base (CDDB) was established with the EFTPS payments January 1, 2006. CDDB will track all individual transactions against the Deposit Ticket totals, which have been entered in the Redesign Revenue Accounting Control System (RRACS) General Ledger. The Trace ID Number shows all credits/payments to be identified and added to the CDDB.

1. For systems that create a Deposit Ticket, a 14 character Trace ID Number will be generated and printed on the Deposit Ticket.

2. Deposit Tickets manually created will receive a Trace ID Number through Batch Block Tracking System (BBTS).

(2) The format for a Trace ID Number that is to be included in all Deposit Tickets (14 digits) and on all Payment Transaction records (20 digits) is:

(3) Each payment added to the XSF with CC XSADD, will need the Trace ID associated with the payment on Master File. The Trace ID will be entered in Box 21 of Form 8758.

(1) All Submission Processing Excess Collections (XSF) function employees must complete new hire or annual refresher training as applicable.

(2) The below training course can be accessed in the Integrated Talent Management (ITM) system. ITM Learning replaced IRS’s learning management system, known as ELMS (Enterprise Learning Management System) in October 2019.

(3) All training will be recorded in (ITM).

(1) Research will be conducted on items by the originator, prior to being added to the XSF to determine if the credit can be resolved, regardless of the dollar amount of the item. Both large and small cases are to receive equal attention, but large-dollar cases will be worked first.

(2) Statute barred credits will be received from other IRS areas to be transferred to the XSF. The application of the credit may be barred because the taxpayer:

1. Submitted a payment for an amended return, or in anticipation of a tax adjustment prior to the Assessment Statute Expiration Date (ASED) but a timely assessment is not made.

   Note: A taxpayer is not entitled to a refund of a payment made before the ASED on the grounds that the IRS failed to make an assessment by the ASED if the taxpayer filed an amended return before the ASED or the Service determined a deficiency before the ASED, and the taxpayer would otherwise owe that amount. See IRM 25.6.1.10.2.5.6.1(1), Claim for an Amount Paid Before the ASED for Tax Determined By the ASED.

2. Had tax withheld or submitted a payment such as an estimated tax payment, but a return claiming a credit or refund was not filed by the taxpayer or secured by the Service until the refund/credit statute expired.

(3) Non-barred credits will come from various IRS areas when those areas cannot identify where the credit will be applied after exhausting all research possibilities.

(4) Research will determine which Status Code to use when adding the credit to the XSF: "FROZ", "IDEN", and "OPEN". See IRM 3.17.220.2.3 for further explanation.

(5) When received for addition to the XSF, the following cases are not researched by XSF for resolution. See IRM 3.17.220.2.8 for further explanation. XSF will review Form 8758 entries, availability of credit, correct entity, Statute Expiration dates and if applicable, attached or notated documentation:

1. An advanced payment for an amended balance due return received prior to the ASED and the assessment was not made.

   Note: All cases received where the statute expired after receipt will be reviewed for attached or notated documentation showing evidence of all research performed to secure or resolve the account prior to statute expiration.

2. Original or amended refund returns received after the Refund Statute Expiration Date (RSED).

3. Payments made on statute tax years when the case is in litigation.

4. Credits for self-assessed penalties on Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for Master File Tax (MFT) 13 or MFT (55).

5. Bankruptcy payments.

(6) If further information is needed from the taxpayer to resolve the credit, in addition to any letters that may have been issued, a telephone contact with the taxpayer to determine proper disposition of payment or credit must be made or attempted, prior to transferring the credit to XSF.

(7) Internet research will be used by all Business Operating Divisions (BOD) in an attempt to locate taxpayers. Several sites (Accurint, Google, SEC, ZABASearch, EDGAR, VIVISIMO and SWITCHBOARD) can be used to locate a phone number or address if one cannot be obtained through IDRS or Directory Assistance.

(8) Whenever a taxpayer contact via telephone or correspondence is unsuccessful, a transaction code (TC) 971 action code (AC) 296 must be added to the module (except on barred credits) to indicate that the account has been thoroughly researched for cross reference (Xref) taxpayer identification number (TIN)] and any other account module) prior to the transfer to the XSF. TC 971 AC 296 is a final audit trail that indicates that all available research sources have been used.

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(1) Credits will be automatically added to the XSF when they drop from the URF.

1. These items will appear on the XSADD listing (URF03 (XSF)).

2. These items do not require research or establishment of case files.

   Exception: URF drops before research has been completed or exhausted in the Unidentified Remittance function.

3. Items dropped from the URF will retain their UR control numbers—most will be unique Document Locator Numbers (DLNs) showing Tax Class "0" and Document Code "09." See Figure 3.17.220-1.



4. Records dropped from the URF will be automatically categorized as source code "UR." "UR" cannot be used when assigning a source code through CC XSADD. A Form 4830, IDRS Multi-Purpose Posting Document, is generated for each credit dropped from the URF to the XSF as shown in Figure 3.17.220-2 and will be associated with the URF case. See IRM 3.17.10.3.16, Closing and Post Closing Procedures.

5. If the URF research has been completed or exhausted, the source code will be changed to" IDEN". File the case with the Form 8758. This keeps the item from printing on the OPEN listing for XSF review. See IRM 3.17.220.2.17.

6. From December 1, through April 30, 2012, cases were received in Fresno or Cincinnati from External Bank Leads Program located in Return Integrity & Verification Operations (RIVO), which represented returned refunds from various banks. RIVO employees performed research and bank contact to resolve the refund. If RIVO was unable to identify and apply the credit, they routed to URF as External Leads Processing (ELP). All documentation will be received from RIVO stating they were unable to identify and apply the credit through research with the bank and added to URF as" IDEN". (These cases will not show up on the open listing.) The credit was to remain in the URF unless bank leads reversed their entry. After May 1, 2012, Accounts 4430/4971 are used for ELP. For refunds deposited after May 1, 2012, transfer the credit to the 4430/4971 Account. The remarks will contain "ELP deposited after May 31, 2012".

(2) As of January 1, 2000, statute expired (STEX) IMF credits (TC 806, Credit for Withholding Taxes and Excess Federal Insurance Contributions Act (FICA), and/or TC 768, Earned Income Tax Credit, only) are systemically transferred from the Individual Master File to the XSF.

1. Credits will be transferred weekly.

2. After credits have been added to the XSF, the system will automatically generate a pending TC 820 and TC 570 to the IMF (with Document Code 58). An Excess Collection Indicator of "1" will also generate to the module from which the credit is being moved.

3. STEX credits can be identified on CC XSINQ by an indicator of "S". The remarks line will state "ACCT ADDED TO XSF. BATCH RUN XSF55."

4. The original DLN of the credit on the account from which it is transferred to XSF will become the XSF control number.

5. If several credits having the same DLN are transferred to the XSF from one taxpayer's account, the system will generate a renumbered excess control number showing Tax Class "0" and Document Code "09".

6. A listing entitled "STEX CREDITS ADDED-XSF55" will be generated which will list all STEX credits added by control number and amount. A summary page showing the total number and total amount of STEX credits added will also be generated. See Exhibit 3.17.220-3.

7. STEX credits will be automatically categorized as source code "ST" and status code "FROZ".

8. These credits do not require research or establishment of case files.

9. A listing showing detailed information concerning each credit transferred from the IMF to the XSF will be generated. The listing must be maintained by the XSF function and retained in accordance with Form 8758 retention guidelines. See Exhibit 3.17.220-4.

10. For balancing purposes, a copy of the listing must be forwarded to RRACS. See IRM 3.17.220.2.6.

11. A separate line item for STEX cases will be present on the URF01 (Excess Collections 6800 File Analysis Report and Excess Collections 9999 File Analysis Report). See Figure 3.17.220-10

12. A separate error register will be generated for STEX cases. Duplicate DLN errors will be resolved by the Excess Collection function. Coordination should be made with the Statute function to resolve all other errors. See Exhibit 3.17.220-4.

13. All Form 8765 received requesting transfers of STEX credits from the XSF must be approved by the Statute function as outlined in IRM 3.17.220.2.8.1.1.1. Annotate in the remarks area on Form 8765 "STEX CREDITS FROM MF" since there is no supporting documentation or case file established for these cases.

(3) Receive the remaining credits to create the XSF from other functional areas of the campus on request Form 8758, Excess Collections File Addition. See Figure 3.17.220-3.

3.17.220.2.2.1 (12-09-2020)

Preparation of Form 8758

(1) Form 8758 mirrors the CC XSADD format as closely as possible. A separate Form 8758 must be used for each credit which is to be moved to the XSF. "Lumping" credits from the same account obscures the individual amounts and the IRS received dates. See Figure 3.17.220-3 for Form 8758.

(2) Instructions for preparing Form 8758 are outlined below.

Note: There are "Required" and "Optional" entries. An "Optional" entry is not optional if information is available to the originator, except for Form 8758 where the Source Code is "ST" and the Status Code is "FROZ."

Item #	Name	Required or Optional	Description
1	Document Locator Number	Required	a. This 14–digit entry is generally the original DLN of the return (not the controlling DLN) for credits such as a TC 806 or the DLN of a payment on the account from which its transfer to XSF is requested and will usually become the XSF control number. b. If the original DLN is not used as the XSF control number, it will be the second entry on Line 9 ("PAYMENT INFORMATION") of the CC XSADD format adding the credit to the XSF. Note: The reason for transferring to XSF will be the first entry on Line 9.
2	Renumbered DLN	Required for described	If completed, this 14–digit entry is the new XSF control number. a. If several credits having the same DLN are transferred to the XSF from one taxpayer account (e.g., TC 640 and TC 680), use the DLN with the tax or "real" credit. After verifying that it is a true duplicate, assign the DLN, changing the first digit of the blocking series to the next higher number, to the addition to the tax or "generated" credit (e.g., TC 680). Change the first digit of the blocking series on credits from a reactivated retention register account. b. For FTD/EFTPS payments received prior to October 22, 2012, insert the last five digits of the Treasury United States (TUS) number or EFT Trace number into digits nine through 13 of the original DLN which may be shared with a number of FTD/EFTPS payments. This will create a unique control number which reflects the credit's origin. c. If the credit has no prior DLN, refer to Figure 3.17.220-4 as a guide to form a DLN, restricting the block number to "800" and above. d. Cases received with out of campus DLNs will not be transferred to the campus that received the payment. Add the credit to the XSF using the "dump" area office code.
3	Source Code	Required	This two–character entry identifies organizationally from where the credit is being transferred. AD—Adjustments AM—Accounts Maintenance CO—Collection DO—Area Office FD—Federal Tax Deposit (FTD) NM—Non-Master File (NMF) OT—Other RJ—Rejects ST—Statute (This source code may be changed during analysis by the XSF technician as described in IRM 3.17.220.2.3 below.) NU—Unpostables
4	Status Code	Required	This four–character entry will be either " FROZ,""OPEN" or "IDEN.""OPEN" will be assumed if no entry is made. This data element may be changed during analysis by the XSF technician as described in IRM 3.17.220.2.3. Note: "OPEN" cases are worked by the Excess Collection function to determine where the credit belongs either by applying it to a taxpayer’s account or sending a refund. If "FROZ" (frozen) is used, Source Code must be ST and documentation explaining status must be notated on Form 8758. If a payment or return was received prior to the statute expiration date and return was not assessed, documentation such as a copy of Form 1040X, must be attached to Form 8758. If "IDEN" (credit identified) or "OPEN" are used, documentation must be notated and attached to Form 8758 explaining why this credit cannot be applied to the correct account. This data element may be changed during analysis by the XSF technician explained in IRM 3.17.220.2.3.
5	Employee Assignment Number	Optional	This 10–digit entry is added by the XSF function if the case is to be assigned to an employee other than the person entering the credit to the file using CC XSADD.
6	Debit Transaction Code	Required	This three–digit entry is to be selected from Exhibit 3.17.220-5 as the debit valid with document codes 24, 48 or 58 which best reverses the credit to be added to the XSF. Be certain that the selected primary transaction code is compatible with the credit's MFT and doc code.
7	Dollar Amount of Credit	Required	This is the amount of credit to be added to the XSF. The amount is to represent a single credit on the account from which it is moved.
8	TC 570 Indicator	Optional	Check the box to input TC 570 as a secondary transaction to the master file. When it is necessary to debit any credits in a multiple-credit transfer from a single master file account module to the XSF, this box must be checked.
9	Payment Type	Required	This two-character entry designates the type of remittance received. BC—Business Check CA—Cash (including cash conversions) CC—Cashier's Check FD—Federal Tax Deposit (including Certificates of Deposit) GC—Government Check MO—Money Order PC—Personal Check UK—Unknown WH—Withholding
10	IRS Received Date	Required	This is the eight-digit entry in month, day, year format (MMDDYYYY, e.g., January 5, 2011, is 01052011). This entry will reflect the return due date (RDD) for TC 806 (prepaid withholding and excess FICA payments). For credit generated due to a carryback credit adjustment from a TC 295/299, TC 305/309 use the INTCMP-DT from the carryback adjustment for the availability date of the credit. Use the actual IRS received date, i.e., the earliest date recorded by any IRS office, for all other credits. Do not add credits less than one year old (computed from the IRS-received date) other than Doc Code 48, 58 or 65 to the XSF. For accounting purposes, they must be added to the URF. "True Statute cases"—CC XSADD will accept credits with received dates less than one year old when source code "ST" and status code "FROZ" are used. The statute of limitations for assessments may have expired either before the taxpayer filed an amended return or made the payment or after the amended return was filed or the examination determination was made and, due to employee error, the assessment was not made.
11	Actual IRS Received Date	Optional	No entry is required
12	Name Line 1	Required	Entry limited to 35 characters
13	Name Line 2	Optional	Entry limited to 35 characters
14	Street Address	Optional	Entry limited to 35 characters
15	City, State, ZIP Code	Optional	Entry limited to 29 characters
16	Reason For Transfer To XSF (History)	Required	Entry limited to 70 characters. This entry will explain the reason the funds cannot be applied to the taxpayer’s account. If a letter was issued requesting more information, list the letter number and what was requested. For example- No reply to 12C sent for missing signature or 12C sent for missing Schedule A. Note: This will be the first entry on Line 9, Payment Information, of the CC XSADD format adding the credit to the XSF. If needed, add plan/report number.
17	Taxpayer Identification Number	Required	Entry limited to 12 characters
18	EFTPS Indicator	Required	Check the box if this is an EFT payment
19	MFT Code	Required	Entry limited to two characters.
20	Tax Period	Required	Six–digit entry in year and month format. (YYYYMM: e.g., January 2011 is 201101).
21	Trace ID Number	Required	Trace ID Number for credits dated after December 31, 2007. See IRM 3.17.220.1.8 for additional information on Trace ID Number. Note: For payments transferred from one module to another, the original Trace ID must be researched and listed.
22	Preparer Name	Required	Name of preparer of Form 8758. (Please Print)
23	Preparer's Employee Number	Optional	Employee number of preparer of Form 8758.
24	Campus	Required	IRS Campus of preparer of IRM 8758.
25	Team Name	Required	Functional area of preparer of Form 8758.
26	Team Fax Number	Optional	Fax number of the functional area of the preparer of Form 8758.
27	Stop #	Required	Employee IRS Stop number of preparer of Form 8758.
28	Phone #	Required	Employee telephone number of preparer of Form 8758.
29	Date	Optional	The date that the Form 8758 is prepared.
30	Research Prior To Transfer	Required	These entries will reflect research performed in the originating function as applicable. Copies of pertinent documents such as transcripts and taxpayer correspondence will be attached to the completed Form 8758 when required. If RTR is accessed, the RTR print will be included, except for barred/expired statute credits. The originator of Form 8758 will include the IRM reference authorizing amounts that are below tolerance to be added to the XSF. If EFT payment that is not expired, be sure to include CC EFTPS research and OSPC contacts. For Box 30, if command codes are researched, it is "Required" to list the command codes researched and analysis of findings. Correspondence issued will be listed and if required, a copy attached. If telephone call or correspondence made to taxpayer, name and phone number of contact and/or letter will be listed. Exception: When contact is needed with an international foreign entity, if making the phone call is prohibited by work hours, international calling costs or interpretive services, See IRM 21.8.1.2.3.2, Over the Phone Interpreter Service (OPI). For International Non Toll Free calls , phone call is not required.  A notation will be made in Item #30-Taxpayer Contact/Telephone Number and Contact Name-Foreign Filer –No Telephone Contact.  Correspondence will be sent for the requested information. If correspondence or telephone contact was not needed to resolve the credit, e.g. Insolvency cases, notate: No follow-up action with taxpayer is required. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ originator's manager's signature of approval is "Required" in this section.
31	Research by Excess Collections Personnel	Required	Be as specific as possible so that your manager or subsequent technician can easily determine the actions you take.

Reminder: Although the address (street address, city, state and ZIP) is not required when completing Form 8758, you must research for an address and update Form 8758 and XSF (using CC XSENT) when sending out correspondence.

(3) Below is an example of the XSF Control Number that is to be created when the credit has no prior DLN. The blocking series is restricted to 800–900.

(1) IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, IRM Standards , and elevated through appropriate channels for executive approval.

(2) For bankruptcy cases only, a hard copy of the TXMODA or IMFOLT/BMFOLT screen print showing the availability in the Masterfile and Service Center balance and the payment and payment date of the transaction being transferred to the XSF must be attached to Form 8758. The print can be no more than seven days prior to the receipt date in the XSF Unit or the case will be rejected to the originator.

(3) For all Non-Master File cases, an ANMF transcript must be attached to Form 8758.

(4) In all other cases, the date IMFOL or BMFOL was researched must be noted on Form 8758.

(5) Documentation must also be noted on or attached to each Form 8758 indicating the research performed prior to the transfer request.

1. Form 8758 received without documentation or without proper completion of all required entries will be returned to the requestor immediately.

   Note: For area field office or other campus employees, contact the originator by phone for the missing information and request that it be faxed. If the information is not received within 2 days, send the Form 8758 back to the originator.

2. Cases received with taxpayer correspondence for which there is no indication of a response being initiated will be immediately returned to the preparer.

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(7) If the statute is still open and Integrity & Verification Operations (IVO), past or present involvement on the SSN, IRSN or x-ref SSN (IDRS controls of 065NNNNNNN, or 148NNNNNNN, TC 971 AC 134/199/617, Letter 4464C, Questionable Refund 3rd Party Notification Letter, CP 05/05A letter sent) is on the specific tax module indicated on Form 8758 or on CC ENMOD, return the Form 8758 to its originator immediately.

(8) See Figure 3.17.220-5 for an example of a Form 8758 which will be returned to its originator.

1. The IRS-received date is missing.

2. Since its DLN indicates the same processing year as that in which the Form 8758 was prepared, it is likely that the credit is a revenue receipt which does not belong in XSF.

(9) The credit will be added to the XSF with source code "ST" in status "FROZ" regardless of where Form 8758 originated if initial analysis upon receipt of Form 8758 within the XSF function reveals that the credit both:

1. Meets the legal criteria for expiration of the statute for either assessment or credit/refund, "and"

2. The taxpayer has not been injured through IRS mishandling of their case.

Note: Refer to IRM 3.17.220.2.8 , Researching Statute-Expired (STEX) Credits for additional instructions.

(10) Before adding the Form 8758 to the file, analysis of expiration dates and the Status Code must be made. If analysis reveals that the credit does not meet the legal criteria for expiration of either statute (RSED or CSED) and this is the reason indicated on Form 8758, return the Form 8758 to the originator.

(11) If the credit meets the legal criteria for expiration of either statute but needs further analysis or research, it will be added to the XSF with source code "ST" in status "OPEN," regardless of where Form 8758 originated.

(12) Credits will be added to IDEN status when:

1. Credit is identified but cannot be applied (i.e., Legal or procedural restrictions); or,

2. No further action can be taken by XSF (i.e., Research exhausted and there is insufficient taxpayer information)

   Note: TC 971 AC 296 on the module indicates the originator of Form 8758 was unable to resolve the credit/payment through telephone contact or research for non-barred credits. If further taxpayer contact or research by XSF personnel may potentially resolve the credit, it will be added as "OPEN".

(13) If further research is needed by XSF function to resolve the credit, add to "OPEN" status in cases where:

1. Credit can be applied or refunded after identification; or,

2. Credit requires further research or analysis; or,

3. Credit requires follow-up contact with the taxpayer. (i.e., Undeliverables, no replies, missing signatures/forms, etc.)

(14) Changes made to Form 8758 during initial analysis within the XSF function as described in (4) above will be made in red and initialed by the technician making the change determination.

(15) As of April 2000, cases are no longer received from Accounts Management (AM) and Collection when taxpayers do not respond to requests for returns when only a payment/credit is present on the taxpayer's account unless the statute has expired for either assessment or credit/refund. This includes AM-12 and AM-18 transcripts only.

(16) The FTD PATAX system, was decommissioned January 1, 2011. FTD payments are required to be made electronically and processed through EFTPS. Due to the decommissioning of the system, previously submitted FTD remittance may require adjustment procedures due to bank or taxpayer error. Beginning June 13, 2011, overpayment adjustments may require a manual refund from the XSF back to the financial institution making the FTD.

(17) Requests for refunds will be received from the Hardcore Payment Tracer Function (HPTF) who will monitor all actions and notify the taxpayer if necessary. See IRM 3.17.5, Hardcore Payment Tracers. If the payment is over twelve months old, HPTF will prepare Form 8758, with documentation, to move the overpayment to XSF to refund the overpayment to the financial institution.

• Copy of taxpayer's check

• Copy of bank statement

• Documentation of FTD Block research

• TC 971 AC 296 on taxpayer's account

• All prints of IDRS command codes utilized

• Letter from bank requesting credit

• Remarks indicating “FTD Banking Error” and “Manually Refund From XSF”

(18) Verify all documentation is complete. If not, reject back to originator.

(19) Use CC XSREF to issue a manual refund from the XSF to the Financial Institution. See IRM 3.17.220.2.11, Manually Refunding from the XSF.

(20) Do not issue taxpayer an explanatory letter.

(21) Notify the HPTF function of the completed action.

(1) Cases added to the XSF must have an IRS-received date earlier than one calendar year before the current date. The only items allowed on the file with an IRS-received date less than one year old must be document codes 48, 58 or 65 or true statute credits.

(2) After ensuring that credits being transferred to the XSF are still available, add cases received on correctly prepared Form 8758 to the XSF on IDRS entering the appropriate CC XSADD. See Exhibit 3.17.220-6 for CC XSADDM.

1. Use CC XSADD "M" to add master file credits to the XSF. CC XSADDM will generate the CC XSADD format.

2. Input "C" in position 7 only to request a new XSADD format when the running item count and dollar amount must be retained for balancing purposes.

3. Input "Y" in position 11 of Line 4 to retain entity information on the input screen when adding multiple credits for the same taxpayer to the XSF. Inputting the multiple credit eliminates the need to reenter the taxpayer's name, address, TIN and comments each time a credit is added for a given taxpayer.

(3) Exhibit 3.17.220-6 shows an example of a completed CC XSADD format for the Form 8758 shown in Figure 3.17.220-3. The completed pending transaction may be checked immediately using CC TXMODA. The cross-reference MFT and tax period filled with 9s is no longer used to indicate that the credit went to the XSF (effective 1-1-98). The system will automatically generate and post an Excess Collections Indicator of "1" to the module from which the credit is being moved.

(4) Use CC XSADD "R" to add credits from sources other than IMF and BMF to the XSF. CC XSADDR will generate the CC XSADD format. See Exhibit 3.17.220-7. for CC XSADDR.

(1) A worksheet for recording actions taken on the case must be maintained for each XSF record with a source code other than "UR." If minimal or no further research is required, the bottom of the incoming Form 8758 may suffice. See Figure 3.17.220-6 for an example of Form 8758.

(2) For more extensive research, use Form 8766, Excess Collections File (XSF) Worksheet. See Figure 3.17.220-6. Attach Form 8766 to the back of Form 8758 to create the working case file. For additional notes, use the back of Form 8766 or add blank paper, as needed. Documentation will be specific as to the research conducted and the results so that succeeding employees will know what has been done.

(1) As soon as a credit, other than from an IMF or BMF account module, is added to the XSF with CC XSADD "R", the credit must be moved out of the account, other than 6800 (Excess Collection) or 9999 (Revenue Clearance), in which it is located. Failure to do this will result in a duplicate credit and accounting imbalance.

(2) Verify Form 8758 balance against the XSADD "R" listing (URF03–XSF 6800 or 9999 Add Register) prior to sending to the RRACS Function. The RRACS Function will complete all journalization procedures to ensure losing accounts are debited.

(3) Additions to the XSF which have been entered using CC XSADD "M" will have the debit portion of the transaction subject to Unpostable Code (UPC) 189 reason code 4. Any debit exceeding the credit balance of the master file account from which the credit came to the XSF will then be checked against credits posted to the master file account. Any debit which does not exactly match the dollar amount of a credit previously posted to the master file account will remain unpostable and be returned to the XSF function for correction. Such unpostables will be voided from the XSF using CC XSOUT "V" and correctly reinput or rejected to their originator within two workdays of their receipt in the XSF function.

1. Assign a new DLN to any reinput credit using the instructions in IRM 3.17.220.2.1.1(2) and Figure 3.17.220-4 (XSF Control Number). The original DLN will be the first entry in Line 9 of CC XSADD "M" when the credit is reinput.

2. If research indicates that the matching credit is no longer available on the master file account, reject the Form 8758 to its originator.

(1) As soon as a record has been added to the XSF, it is available for research at any IDRS terminal serviced by the campus.

(2) Any function which establishes control bases on its cases, and which requests a credit to be added to the XSF may also consult CC XSINQ to determine appropriate closure of its control base.

(3) CC XSINQ researches the XSF by amount of credit, by name control or by DLN. At least one of these data elements must be input. The search is narrowed by using as many of these pieces of information as possible. If the DLN of the credit being searched is not known, using the area office number reduces the volume of matches presented to the researcher from campus-wide to those of the designated area. See Exhibit 3.17.220-8 for examples of CC XSINQ.

(4) To display a particular record, place an asterisk in column 1 next to the chosen record. Transmit after the name control and DLN. When researching by credit amount, other records with the same money amount may be researched without reinputting the entire CC format. A pound sign (#) will appear to the left of the records on which research has been performed.

(5) The IDRS user may go from CC TXMOD to CC XSINQ and back to CC TXMOD without retyping the TIN, tax period and MFT.

(1) Research will be conducted on items by the XSF function if the Status Code is OPEN to determine if the credit can be resolved, regardless of the dollar amount of the item. Both large and small cases are to receive equal attention, but large-dollar cases will be worked first.

(2) As stated in IRM 3.17.220.1.4, all CC XSADD cases must be thoroughly researched to the standard outlined for Unidentified Remittance cases in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Within two workdays of their addition to the XSF, the XSF function will attain this standard by identifying the source of the credit, any necessary follow up action needed and use any applicable command codes to resolve the case. See IRM 3.17.220.2.1 for exceptions.

(3) The extent of research performed within two workdays on these credits is outlined below.

1. Identify the source of the credit, e.g., unidentified payment, decedent refund, returned refund etc.

2. It is not necessary to duplicate research performed within the last 10 work days.

   Reminder: With the implementation of CADE 2 for January of 2012, IMF accounts will be marked as Daily or Weekly. Daily accounts will be monitored more frequently as transactions may post each day of the week. Sequence and monitor transactions accordingly.

3. Be sure to coordinate fully with other functions.

4. Annotate the date the research was performed on Form 8758 (or Form 8766).

5. After all research has been completed and any correspondence received from the taxpayer acted upon, delete the employee assignment number from the XSF record using CC XSENT.

(4) Review documentation for cases which can be closed without further research. The originator of the Form 8758 may have missed something which would allow immediate application of the credit.

(5) Check for credits that can be identified as payment for agencies other than the IRS. See IRM 3.17.220.2.14 for further instructions.

(6) Research all remaining XSADD credits on IDRS using all available CCs. IDRS is the place to begin your search for the matching debits. CCs which may be helpful are:

1. TXMOD to access specific tax modules which contain pending and posted transactions; and to determine the status of an account.

2. SUMRY to review pending transactions and currently active tax modules under a specific TIN.

3. ENMOD to review pending or posted entity transactions under a specific TIN.

4. NAMES to research a nationwide database (Name Search Facility (NSF) at ECC-MTB) of taxpayers' SSNs or NAMEE to research a nationwide database of EINs. NAMEI (IMF) and NAMEB access the NSF of names and addresses to locate an SSN or an EIN. NAMES and NAMEI search for both the primary and secondary filer names. The hardcopy options are NAMEIX and NAMEBX.

5. FINDE to research the NSF for the business' name and address information, using the EIN and FINDS to research for the taxpayer's name and address information, using the SSN.

6. AMDIS to list all records that are on AIMS under the TIN.

7. INTST to compute the correct outstanding balance, including interest and failure to pay accruals, to the date specified in the CC.

8. COMPA to compute interest or estimated tax penalty for a specific amount and time.

9. COMPAF to compute failure to pay penalty.

10. COMPAD displays the detail used to compute the interest.

11. TDINQ requests display of entity and module date on the TIM which is pertinent to delinquent return investigations.

12. STAUP is used to update the status of a module and may be used to accelerate, delay or skip routine notice issuance.

13. ACTON to research case control and history of cases.

14. LEVYS to research levy source information on the TIF.

15. IADIS to research installment agreement data.

16. SCFTR to research SC Control File and overnight research of records that have been moved to the historical SCCF.

17. CFINK to research the Centralized Authorization File.

18. UPTIN to research open and closed unpostables for a specific TIN.

19. INOLE to research the National Account Profile (NAP). This CC is particularly helpful in locating information for all Master File accounts.

20. BRTVU/RTVUE to provide business return transaction information. It consists of original input return data, including schedules. This return information contains Code and Edit, Error Resolution (ERS), and computer generated fields.

21. IRPTR (with Definer L) to provide two payee addresses if present, filing status, one payer name and address, cross reference information, and a summary of up to 36 IRP money amounts by income type.

22. IMFOL will provide nationwide IMF entity and tax data information on-line for tax accounts that are in credit or debit status or that contain freeze conditions or open IDRS control bases. It will also display a list of accounts moved to the retention register. Other accounts that are not on the retention register will be available on-line within 24 hours upon request.

23. BMFOL will provide business return transaction information. The file consists of original input return data, including schedules. This return information includes Code and Edit, Error Resolution (ERS), and computer-generated fields.

24. HCFOL (Help) and ICFOL (Information) to assist in the utilization of the CFOL CCs.

25. EFTPS to request immediate research of the Electronic Federal Tax Payment System (EFTPS), a system for processing tax payments electronically.

26. TRDBV to access read only tax return information submitted by the taxpayer.

27. NOREF is used to intercept BMF refunds. For IMF, with the implementation of CADE 2 in January 2012, if TC 846 has already posted to the account, it is too late to stop the refund via CC NOREF. If the account is on hold, TC 570 or NOREF, definer "P" can be input to prevent the refund from being issued to the taxpayer.

28. TPIIP is used to search for a primary or secondary SSN.

(7) While working assigned cases, SP employees may come across some that are blocked on IDRS and can be identified by an IDRS security violation message, "Unauthorized Access to This Account". Forward the case to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once notified access has been granted, the case can be processed following applicable procedures.

(1) Mail appropriate correspondex letter or make telephone contact with the taxpayer for additional information within 45 days of its addition to the XSF for "OPEN" status cases when thorough research has not revealed where the credit will be applied. Before sending a letter to the taxpayer, check CC CFINK for Power of Attorney. If present, a letter must also be sent to the representative. See IRM 2.3.31, Command Codes CFINK, RPINK, KAFFQ and KAFTQ for CAF Inquiry.

(2) When available, enclose a copy of the check. Make sure that the person you are sending the copy of the check to is the taxpayer that is authorized to receive this information.

1. Make sure that the name and address on the check matches the name and address on the correspondence. If the name or address mismatches, research the last tax return filed and see if the entity matches. For joint filers, the secondary taxpayer may have sent the check instead of the primary taxpayer.

2. Inadvertent disclosures must be reported to your manager immediately. In addition, inadvertent unauthorized disclosures must be immediately reported to the Office of Privacy, Governmental Liaison and Disclosure (PGLD) via the PII Breach Reporting Form located at Report Losses, Thefts or Disclosures of Sensitive Data; Report Lost or Stolen IT Assets and BYOD Assets (sharepoint.com). For additional information and guidance, see IRM 10.5.4.3.3, Inadvertent Unauthorized Disclosures and Losses or Thefts of IT Assets, Bring Your Own Device (BYOD) 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. Also see IF/THEN Guide for Reporting Incidents and Data Breaches which is listed in the Other Related Resources section on the Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site, for additional incident and data breach reporting requirements based on what was lost, stolen, destroyed, or disclosed. .

(3) Some of the most commonly used letters are listed below and may be used when corresponding with the taxpayer:

1. Letter 1687C, Unidentified Payment/Credit for application information and contact has not previously been made.

2. Letter 12C, Individual Return Incomplete for Processing: Form 1040, Form 1040A and Form 1040EZ for TIN and/or signature for secured return.

3. Letter 18C, Decedent Refund (Form 1310 Requested) for information and documentation to process refund for deceased taxpayer.

4. Letter 112C, Payment/Overpayment/Credit Applied; No Record of Return Filed for application information and to request return filing.

5. Letter 135C, Power of Attorney Needed to Furnish Information for proper authorization to act for the taxpayer.

(4) If research indicates that a TC 593 is present on the taxpayer's account and that there has been no update to the taxpayer's address since the TC 593 was input, do not initiate correspondence to the taxpayer.

(5) Re-contacting a taxpayer for information about the credit may be advisable at the manager's discretion in special cases, e.g., as when research indicates that the taxpayer may have moved and not received the initial communication or if lack of clarity or legibility may have been responsible for the failure of the first contact.

(6) When telephone contact is deemed appropriate, avoid unauthorized disclosure of taxpayer information. Be very careful not to make an unauthorized disclosure. Refer to IRM 11.3.1, Introduction to Disclosure and, IRM 11.3.3 Disclosure to Designees and Practitioners. The Internal Revenue Service Restructuring and Reform Act of 1998 (IRS RRA 98),IRC 3705(a), provides identification requirements for all IRS employees working tax related matters. Information provided to communicate with a taxpayer is outlined in IRM 21.1.1.4, Communication Skills.

(7) If research indicates the death of the taxpayer, refer to IRM 3.11.3.10.3, Documentary Evidence, for documentation needed to release the refund. In many cases, the person requesting the refund will have to complete Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. See Figure 3.17.220-7.

1. Check AMS for the missing information. If missing information is located, make a copy for the casefile.

2. If missing information is not located in AMS, send another Letter 18C to the taxpayer’s estate. Request a response within 30 days.

3. A refund will be made based on the receipt of the complete response.

4. If the refund may include interest or need penalties abated, apply to the taxpayer's account rather than manually refunding from the XSF. See IRM 20.2.4.8.4 Unidentified Remittances, and IRM 21.4Refund Inquiries. Make a copy of the documentary evidence for the casefile and apply the funds to the taxpayer’s account with TC 570 and send the original documentary evidence along with Form 4442 to AM with an explanation the account is that of a decedent and a manual refund may be needed.

5. Issue a manual refund to the person claiming the refund as the payee using CC XSREF if the refund will not include interest. See IRM 3.17.220.2.11.

6. Make a photocopy of the documentary evidence for the casefile and send the original information to files to associate with the return.

(8) Payments received for the Affordable Care Act (ACA) Individual Shared Responsibility Penalty (SRP) will be applied to MFT 35 or the mirrored injured spouse account, MFT 65. Use the DPC received with the payment. If no DPC was designated, use DPC 36.

(9) Payments received for the ACA Employer Shared Responsibility Payment (ESRP) will be applied to MFT 43 using TC 640, DPC 43 unless another DPC was designated.

(10) Send Letter 407C when the taxpayer has returned a refund with no explanation. Refunds cannot be reissued after 7 years. See IRM 21.4.3.5.6, Resolving Returned Expired Refunds Limited Payability.

(11) Payments received for Section 965 under14103 of the Tax Cuts and Jobs Act , P.L. 115-97, enacted on December 22, 2017. Valid IMF MFTs are 30, 31, and 82. Valid BMF MFTs are 02, 05, 06, 34 and 83. All section 965 tax payments will be posted to the tax module where the assessment was posted. For example, if the Section 965 tax assessment is posted on the 201712 tax module, all Section 965 tax payments will be posted to the 201712 tax module, regardless of the year in which the payment is made based on the installment percentages in the subsequent years. Section 965 returns have a posted TC 766, credit reference number (CRN) 263. IMF returns are identified with return processing code (RPC) F, BMF with computer condition code (CCC) J. Taxpayers were instructed to send two checks, one for their regular tax and one for Section 965 tax. If taxpayer contact or research shows the payment was for Section 965, apply as a TC 670, secondary TC 570 with DPC 64.

(1) Research or the realization that an error was made when adding a record to the XSF may require changing or debiting the record or voiding it completely from the XSF.

(2) CC XSOUT and CC XSENT are available only to the Excess Collections function. However, any operational area may route such changes with supporting documentation to the Excess Collections function for action.

(3) Use CC FMAPLR to generate CC XSAPL. Then overlay CC XSAPLR with CC XSOUT. See Exhibit 3.17.220-9 for examples of CC XSOUT.

1. CC XSOUT "V" is used to completely void an XSF record from the XSF.

2. CC XSOUT "Z" is used to correct an erroneous money amount.

(4) CC XSENT may be used to:

1. Change the status of the XSF record

2. Add follow-up information to the record

3. Correct erroneous entity information

4. Change the IRS-received date on the record

5. Change or delete the employee assignment number

6. Change the control number

7. Change the taxpayer identification number

8. Change the source code

9. Change the Trace ID Number

(5) CC XSINQ history will contain a record of the data change. See Exhibit 3.17.220-10 for examples of CC XSENT.

(6) Processing of Unpostables involving Excess Collections:

1. With the exception of unpostables resulting from incorrect or unavailable money amounts, the Unpostable function will perform research to determine if they can correct the unpostable condition.

2. When received, correct any erroneous entity data on the XSF database using CC XSENT. Do not void and re-add the credit to the XSF.

3. Unpostables resulting from incorrect or unavailable money amounts will be returned to the Excess Collections function for resolution.

4. STEX credits received from Unpostables will be forwarded to the Statute function for resolution.

(1) Use CC XSREFR/XSREF to affect a manual refund from the Excess Collections File. This type of application is restricted to the Excess Collections function and is to be used sparingly. The XSF record status must be "OPEN" or "IDEN."

(2) Refunds will also be requested by personnel outside the Excess Collections function on Form 8765, IDRS Control File Credit Application, as described in IRM 3.17.220.2.12. (See Figure 3.17.220-8 for Form 8765.) A refund will be made based on the taxpayer's response. Examples of acceptable reasons for a refund are: payment sent in error; payment intended for another payee or agency; receipt of Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer; etc. When processing Form 1310, refer to IRM 3.17.220.2.9 Requesting Information From the Taxpayer. The reason for a specific refund will be stated in the "Remarks" section of the Form 8765.

(3) If the taxpayer is to receive interest or needs penalties abated, apply the credit to the taxpayer's account rather than manually refunding from the XSF. See IRM 20.2, Interest, for instructions for computing interest on XSF refunds.

(4) Always research thoroughly to be certain the taxpayer has no outstanding balances before manually refunding. Also, research for any freeze codes that may limit refunding. Refer to IRM 21.5.6, Freeze Code.

(5) Manual refunds generated from the XSF will be reviewed and the case history sheet signed by the XSF function manager or designee before application.

(6) Before applying the refund from the XSF, use CC XSENT to add audit trail information to the permanent file, including the reason for the manual refund, case number or other pertinent information.

(7) Refund an XSF credit by using CC XSREFR to request the generated CC XSREF format. See Exhibit 3.17.220-11 for CC XSREFR and CC XSREF.

(8) When refunding a payment intended for another agency or payee, send an explanatory letter to the taxpayer containing an appropriate apology for processing the remittance in error. Special IDRS Letter 3064C may be used.

(9) Credits are returned to the campuses for refund checks that have been issued to taxpayers but were not cashed within one year. These credits are referred to as limited payability credits. Limited payability credits for refund checks initiated from CC XSREF will be transferred to the XSF function for resolution.

1. Use existing documentation from the case file and information obtained through the research process to assist in determining the disposition of the credit.

2. Contact the taxpayer for further instructions and/or a better address to which the refund can be reissued.

3. If the taxpayer indicates that the refund needs to be reissued, use CC XSREF to execute the refund.

4. If the taxpayer states that the credit will be applied to an outstanding liability, follow CC XSAPL procedures outlined in IRM 3.17.220.2.12 and IRM 3.17.220.2.13 below.

5. If unable to contact the taxpayer or to refund or apply the credit, it will remain in the XSF as outlined in IRM 3.17.220.2(3) and IRM 3.17.220.2(8).

(10) All manual refund requests will require the use of Form 14031, Manual Refund Signature Form. See IRM 3.17.79.3.5.4, Processing Requirements for Unidentified/Excess Collections/Photocopy Fee Manual Refunds (Submission Processing Only).

1. Control D report URF 0340 lists the generated XSF refund(s).

2. Scan or save the first page of the report listing the XSF refund(s) as a .pdf file.

3. The manual refund approver will electronically sign the copy of the report being sent to be certified.

(11) Manual refunds may be subject to the Treasury Offset Program (TOP) per IRC 6402. See IRM 21.4.6. Refund Offset. If a taxpayer mistakenly, but intentionally makes a payment to the IRS, any excess payment would be an overpayment. An over-stamped check by the IRS is an example of a payment which is not subject to TOP offset.

(12) A TOP offset bypass indicator (BPI) is assigned to all manual and systemic refunds issued to Bureau of the Fiscal Service (BFS) by the IRS. For XSF manual refunds, the BPI is limited to Yes (allow TOP offset) or No (do not allow the TOP offset).

(13) Do not allow a TOP offset where Combat Zone -C freeze is set.

(14) On the URF 0303 report, notate to the right of each record whether a TOP offset is bypassed. Notate “Y” to allow for TOP offset, “N” for bypass of the TOP offset.

(15) Check IDRS for Debit Indicator F, TOP offset. If present, inform the taxpayer they are still subject to TOP offsets by BFS.

(1) Application of credits from the XSF, using CC XSAPLR and CC XSAPL, cannot be made by persons outside the Excess Collections function. Upon finding the credit through using CC XSINQ, an individual outside the XSF function will submit request Form 8765, IDRS Control File Credit Application, with attached documentation identifying the credit and indicating its proper application. A NOTE may be added to the RTR System when a correction is made to the TIN, plan number, and tax period. See Figure 3.17.220-8.

1. Source of Credit—select IDRS control file where credit is located, either XSF or URF.

2. Application Type—use application type "M" to apply a credit to a Master File account; type "N" to apply a credit to a NMF account (including Employee Plans Master File (EPMF)), or type "T" to apply a credit to a general account rather than a taxpayer's account.

3. Control Number—must match number shown on XSF record.

4. Notice Indicator—check only if Letter 2349 is to be sent to the taxpayer. (See IRM 3.17.220.2.13 and also Figure 3.17.220-9)

5. Return-Filed Date—if available, enter in MMDDYY format the IRS received date of the return if it is more than two years prior to the current date. Leave blank if the IRS received date is not known.

6. Account Name Control—enter 4-position name control as shown on XSF. Circle with red pencil if name control on XSF is "UNKN" which must be changed to correct entry prior to application of the credit from the XSF.

7. Application Name Control—enter 4-position name control of module to which credit is to be applied (if "M" application).

8. Primary Transaction Code— See Exhibit 3.17.220-13 for list of valid TCs to be used on "M" applications.

9. Primary Transaction Amount—amount of credit to be applied with (8).

10. Secondary Transaction Code— See Exhibit 3.17.220-13 for list of valid TCs to be used on "M" applications.

11. Secondary Transaction Amount—amount of credit to be applied with (10). Field will be blank if (10) is 570.

12. Tertiary Transaction Code— See Exhibit 3.17.220-13 for list of valid TCs to be used on "M" applications.

13. Tertiary Transaction Amount—amount of credit to be applied with (12).

14. Taxpayer Identification Number—Taxpayer Identification Number to which credit is to be applied—entry limited to nine numbers; "M" and "N" applies only.

15. Tax Period—enter tax period of account to which "M" or "N" application is to be made; in YYYYMM format.

16. MFT—enter 2-digit Master File Tax Account code if application is "M" or "N."

17. Remarks—required entry on all applies. This is a detailed explanation for requested application.

Note: Documentation attached will justify request for application. If taxpayer reply is notated, a copy of the taxpayer correspondence or contact will be attached. If the credit is T applied, the general ledger account should be placed in the remarks section.

18. Preparer Identification—required entry to include name of preparer of Form 8765.

19. Employee Number—required entry of the employee number of Form 8765 preparer.

20. Stop Number-required entry of the stop number of Form 8765 preparer.

21. Phone Number—required entry of the phone number of Form 8765 preparer.

22. Manager’s Signature-optional entry to include the originator’s manager’s signature of approval.

Note: If the manager uses a digital signature format, it must contain the manager’s SEID and name or SEID and e-mail address.

23. Date—required entry containing the date Form 8765 is prepared.

24. Plan/Report Number—enter 3-digit plan/report number if MFT is 46, 74 or 76. If MFT is 46, valid Report Number range is 000, 100–199, 300–399, 500–599 and 700–799. If MFT is 74, valid PLAN-NUM range is 001–999. If MFT is 76, valid PLAN-NUM range is 000–499, 501–999.

25. Location Code or 23C Date—required only for "N" applies.

26. Tax Form—required only for "N" applies.

27. General Ledger Account Number—required for "N" applies.

(2) Form 8765 mirrors the CC XSAPL and CC URAPL formats as closely as possible. Form 3809, Miscellaneous Adjustment Voucher, may not be accepted for applying an XSF record. Call the originator of the Form 3809, explaining that Form 8765 must be used to request applications from the XSF. Return all Form 3809 to their originators.

(3) Form 8765 must have documentation attached identifying the credit on the XSF as well as justifying its requested application through correspondence, research performed, etc. Amounts on Form 8765 and back up documentation must match requested application. If Form 8765 is received without this documentation or without the proper completion of all required entries, return it to the requestor immediately. Below is a list of the required documentation to be attached to Form 8765 if applicable.

1. Copy of the taxpayer correspondence.

2. Copy of taxpayer communication e.g., AMS notes.

3. Copy of the entire transcript using command codes TXMODA, IMFOLT or BMFOLT showing where the payment is to be applied.

4. Copy of amended return.

5. Copies of check(s).

6. Appeals Form 5402, Appeals Transmittal and Case Memo, and supporting documents.

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8. Statute clearance approval.

(4) Certain Forms 8765 must have the originator’s manager’s signature of approval in Box 22. The originator’s managerial review and approval is required if the re-application of the payment/credit from XSF to the tax account will result in a refund.

(5) Certain Form 8765 must be cleared by the Statute function before application of the credits from the XSF. These include credits on which the statute of limitations for credit or refund has expired—two years from the date of payment (IRS received date) or three years from the return-filed date, whichever is later. Forms 8765 prepared by the Statute function are to be considered cleared.

1. If statute criteria are not identified prior to application, CC XSREF and CC XSAPL will automatically compute the statute of limitations from the IRS-received date.

2. The technician will enter the filing date of the return to these formats whenever the IRS-received date is more than two years earlier than the current date. CC XSREF and CC XSAPL will then automatically compute the statute of limitations from the return-filed date.

3. After computation, CC XSREF and CC XSAPL formats will complete the requested refund or application transaction whenever the statute of limitations has not expired. If the statute of limitations has expired, CC XSREF and CC XSAPL will change the status of the XSF record to "FROZ", and the requested refund or application transaction will not be completed.

(6) The Excess Collections function will immediately return all Forms 8765 that require statute clearance back to the originator unless the originating function is located outside the receiving campus. Forward to the local Statute function for review unless the Form 8765 was prepared by another campus’ Statute function. A Statute function determination may allow refund or credit in a case in which the statute normally would have tolled.

1. If approved, the Statute function will stamp or type the words "Statute Cleared", date of statute clearance and ten digit employee number in the "Remarks" section of Form 8765. The Form 8765 will be returned to the Excess Collections function for application of the credit using CC XSAPL.

Note: Verify the debit has posted to Masterfile prior to the reapplication of the credit.

2. If disapproved, the Statute function will return the Form 8765 to its originator.

(7) When applying Statute function approved credits on which the statute of limitations has expired using the two year/three year rule, enter the Statute-approved date in the CC XSAPL format as the return filed date on Line 2. Note the correct return filed date in "Remarks" on Line 9. Form 8765 initiated by the Statute function do not require a clearance stamp, therefore, the date in block 25 will be entered on Line 2.

(8) As a result of the campus realignment, a credit on the XSF of one campus may occasionally require application to an account at another campus.

1. If such a credit is to be applied to a Master File account, use CC XSAPL "M" in the usual way as described in IRM 3.17.220.2.13.

2. If such a credit is to be applied to a Non-Master File account, apply the credit from the XSF using CC XSAPL "T". Hand carry a print of the just-applied-XSF record with copies of documentation as required by IRM 3.17.243, Miscellaneous Accounting, to the Transfer function. The Transfer function will prepare Form 2158, Credit Transfer Voucher, to affect the transfer and necessary journalization.

3. Form 8765 received from another campus without prior Statute approval will not be rejected but immediately forwarded to the local Statute function for review unless the Form 8765 was prepared by another campus' Statute function.

(9) When closing a case which needed research because the taxpayer failed to provide sufficient identifying information or the information provided was illegible, send Letter 2349 or Letter 2349 (SP), to the taxpayer.

(10) Remittances received with Form W-7, Application for IRS Individual Taxpayer Identification Number packages will remain in the receiving campus' XSF inventory until an ITIN is assigned. When the ITIN or IRSN information is received from the AUSPC ITIN Unit the remittance will be applied to the taxpayer even if the Account is not established on the MF.

(1) Verify the appropriate application to be made. This data will become part of the XSF record. The corresponding Form 8758 is not required to be pulled and associated with Form 8765.

(2) The XSF record must be in "OPEN" or "IDEN" status. Use CC XSENT to change the status as appropriate. When the entire XSF credit has been applied, the record status will automatically be changed to "CLOS." A partial application will adjust the XSF record balance but leave the status in "OPEN" or "IDEN".

(3) Verify the debit has posted to Masterfile prior to the reapplication of the credit.

(4) Applications can be made daily by inputting information on IDRS with CC XSAPLR and may only be made by the Excess Collections function. This data will become part of the XSF record.

(5) Use CC XSAPLR to request the CC XSAPL format on IDRS. CC XSAPL cannot be used if the name control on the XSF record is "UNKN;" before application, change the name control with CC XSENT as described in IRM 3.17.220.2.10.

(6) The XSAPL format will be redisplayed after each application with the message "REQUEST COMPLETED" appearing on Line 13.

(7) Use CC XSAPLR to display the generated CC XSAPL format. See Exhibit 3.17.220-12.

(8) Use CC XSAPL "M" to apply credit to Master File accounts. On-line credit posting will be computer-generated to the appropriate tax module.

(9) Use CC XSAPL "N" to make application to NMF and EPMF accounts.

(10) Use CC XSAPL "T" to make a transfer to Deposit or General Fund application.

(11) Form 4830, IDRS Multi-Purpose Posting Document, will be generated for each "N" or "T" application.

(12) If the "M" or "N" application was not based upon information received from taxpayer, send Letter 2349 or Letter 2349 (SP) to the taxpayer. See Figure 3.17.220-9

(13) When the outstanding balance of the taxpayer's account is less than the amount of the credit being applied and the application is not based upon information received from the taxpayer, send the taxpayer explanatory correspondence about the refund to be received. Except for TC 700, enter Bypass Indicator "Y" when applying a payment to an account which is in zero balance or debit balance for less than the credit being applied to avoid unpostable conditions 305 and 198. The Bypass Indicator will also be entered when a credit is applied to a full-paid account pending additional liability. Input TC 570 as a secondary transaction to hold the credit on the module and to avoid additional work for Unpostables. Record the pending liability and amount as part of the XSF history so subsequent technicians can know when to input TC 571 to the account in case the credit will ultimately be greater than the liability.

(14) If the record status correctly changes to "FROZ" because of an attempted application after expiration of the statute of limitations for refund, immediately notify the initiator of the Form 8765, forwarding the Form 8765 with accompanying documentation to the Statutes function.

(15) Refer to procedures in IRM 3.17.220.2.12 when applying from records having "ST" source codes.

(16) Annotate each applied Form 8765 with the date of application. Place the document in an appropriately labelled history folder.

(17) To speed processing, an Excess Collections "paper" credit which has either dropped from the XSF or was in Accounts 6800 or 9999 prior to the XSF may be applied through the XSF. For balancing purposes, local management may prefer to restrict action on such cases during the last few days at the end of each month.

1. All IDRS action on a paper credit must take place within the same workday.

2. Upon receipt of incoming Form 8765, pull the appropriate Drop Listing from EONS (XSF 50) or Control D (Report Name - XCESS COLL DROP LST1) that is seven years after the cycle and year the credit was removed from the TXMOD.

3. Annotate the date and amount of credit to be reactivated. Review the case for accuracy and appropriateness of transfer.

4. Add credit to the XSF using CC XSADD "R", referencing 9998 DROP or 9998 PAPER in the history to indicate it is a reactivate.

5. Access and print case record using CC XSINQ. Highlight 9998 DROP or 9998 PAPER.

6. Apply credit using CC XSAPL.

7. Hand carry print to RRACS for necessary action.

(1) Taxpayer response or research may indicate the payment was for other than a tax liability. If applicable, the below descriptions provide specific application details.

(2) Conscience Money: This is a remittance received to ease the taxpayer's conscience and is usually accompanied by an anonymous note so indicating. For example, "Now I'll be able to sleep better." Use CC XSAPL "T" to transfer conscience funds to Account 2360, Conscience Fund (contra account 6400, Miscellaneous Revenue Collections). See Exhibit 3.17.220-12 for an example of CC XSAPL "T."

(3) Photocopy Fee: The processing of requests for photocopies of tax returns or tax return information is handled by the IRS. A taxpayer payment for photocopies can be placed in the URF and eventually transferred to the XSF.

1. If taxpayer contact indicates remittance was intended for photocopies or for return information, transfer the credit to Account 2340, Photo Copy Fees, using CC XSAPL T. Annotate Photocopy Fee in the remarks.

2. If taxpayer contact indicates remittance was intended for EO photocopies or for EO return information, transfer the credit to Account 2320 (TAS 20-3220), Duplication of EOMF Documents, using CC XSAPL T. Annotate EOMF Photocopy Fee in the remarks.

(4) Bulk Forms Fee: Payments received from tax practitioners and other persons for shipment of bulk orders of tax forms will be refunded to the taxpayer using CC FMREF/XSREF. Under no circumstances may these amounts be applied to outstanding tax liabilities. The taxpayer will be sent a note explaining that the Superintendent of Documents (part of the Government Printing Office) is the only government agency authorized to sell printed materials such as federal tax forms. Refer them to the practitioner gate at the toll-free number 1-800-829-3676.

(5) Voluntary Contribution to Reduce the Public Debt: If taxpayer contact reveals that the payment was intended as a contribution to reduce the public debt, transfer the credit to Account 6400, Miscellaneous Revenue Collections, on IDRS using CC XSAPL "T." RRACS technicians will reclassify the money to Account 2350, Public Debt, for reporting purposes. Annotate in the remarks "Public Debt."

(6) Payment other than the partial payments required under TIPRA received with Offer in Compromise: This is a deposit with Form 656, Offer in Compromise other than the application fee or partial payments required under Tax Increase Prevention and Reconciliation Act (TIPRA) and explained in IRM 5.8.2.8.1, Processable Offers-Payment Processing. The payment may be received from a third party on behalf of the taxpayer making the offer. Specialty Collections Offer in Compromise can verify the payment. An Offer In Compromise (OIC) payment may be identified by:

1. "–Y" freeze,

2. TC 480 or TC 780 on tax module or

3. Status code 71. Use CC XSAPL "T" to transfer the credit to Account 4710, Offers-in-Compromise.

(7) User fees for letter rulings and for determination and opinion letters: Transfer these remittances to Account 6310, Miscellaneous Fees, using CC XSAPL "T" identifying the remittances as user fees. Forward a copy of the XSF 03 Report to the RRACS Function for journalization. Annotate it to show "User Fees. "

(8) Wrongful Levy Situations: These are credits received from a bank account other than the taxpayer’s or from sale of property which does not belong to the taxpayer; situation does not involve determination of hardship. The authority to return wrongful levy payments is provided in IRC 6343(b), which limits the claim for return of money to the period within 9 months of the levy issuance on or before March 22, 2017 or two years from the date of the levy after March 22, 2017.

1. When a payment is identified as a wrongful levy immediately hand carry supporting documentation and a print of the CC XSINQ module to the Department Manager, Compliance Services Collection Operations (CSCO). Collection personnel will follow their procedures for issuing an expedited manual refund. Upon assurance that the expedited manual refund procedures have been followed, annotate the worksheet showing action taken and remove credit from the XSF using CC XSOUT "V".

   Note: Do not use CC XSREF in wrongful levy situations.

2. If the credit(s) are dated over twelve months, Form 8758 will be completed to add to Excess Collections. Do not refund the credit(s). The user will complete the form for each credit, using Category "IDEN" in Box 4.

(9) Unclaimed Funds: These are credits returned to the IRS by a state and represent bank drafts and cashier's checks purchased by taxpayers which have never been cashed, but were made payable to "Internal Revenue Service". Research thoroughly to identify the taxpayer entitled to such a credit. A call to the state agency issuing the credit will identify the bank which forfeited the credit if the documentation attached to the incoming credit does not. Contacting the bank which forfeited the credit to the state often yields additional information since the forfeiture took place recently. However, if the taxpayer who bought the cashier's check or bank draft cannot be identified, the credit will remain in the XSF.

(10) Installment Agreement User Fees (IAUF): Since March 1, 1995, taxpayers are charged a fee for establishing and monitoring Installment Agreements (IA). The Bipartisan Budget Act of 2018 or the BBA was passed included modifications of user fee requirements for IA’s. It also requires the IRS to waive or refund the user fee for TP’s (AGI) income at or below 250% of the FHHSG. Refer to IRM 5.14.1.2 Installment Agreements and Taxpayer Rights and IRM 5.19.1.6.4.6.4Reimbursement of User Fee for Qualifying Low-Income Taxpayers for an overview of the enacted provisions.

1. The Treasury Accounting Symbol for Installment Agreement user fees (and DDIA fees) is 20X5432.1 and 20X5432.3 for reinstatement/restructure fees.

2. Installment Agreement user fees will not be refunded until CSCO has been contacted and given their approval to issue the refund.

3. Beginning January 1, 2010, Installment Agreement user fees will be processed systemically by a weekly IDRS Correction Run known as the User Fee Sweep. The IA user fee Transfer Program sweeps all active IMF IAs, coded as "user fee due", and moves the money from the tax account to an accounting fund for IA user fee. No user fee modules are created. The sweep is done weekly, beginning 4 weeks after a TC 670 has posted to the account. The payment is reversed with a TC 672 Saturday Julian date in the DLN of the credit transfer, from "001" through "365".

4. Apply the full amount of the payment to the taxpayer’s balance due account using the appropriate payment Transaction Code. When the customer makes a payment, all of the money will be applied to tax. The User Fee Sweep will credit the UF account if necessary. See IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview, for specific information concerning installment agreements and user fees.

   Reminder: User fees may be made as split/multiple payments and must be equal to the required fee. If more than one payment was made, all must be credited to the taxpayer's module to cover the required fee.

(11) USDA Discrimination Settlement Payments - KCSPC only: The United States Department of Agriculture (USDA) paid cash settlement and granted loan cancellation to a limited number of farmers. The settlement resulted from a discrimination suit brought against the USDA by the farmers. Awards from the settlement are treated as taxable gross income. Poorman-Douglas Bankruptcy Services forwards to the IRS a list of recipients who received USDA settlement payments. Each claimant who received a $50,000 settlement from Poorman-Douglas is also entitled to receive $12,500 from the IRS to pay their taxes on this settlement.

1. The $12,500 tax payment is received in Accounting via Intra-Governmental Payment & Collections (IPAC). When IPAC transmission is received, RRACS prepares Form 8758 for prior year transactions and routes the Form 8758 with taxpayer data to the Excess Collections Function.

2. The Excess Collections Function will add the total of the IPAC payment to the XSF file. The credits are then applied to the individual taxpayer's account with a TC 660 and a TC 570 to hold (freeze) the credit.

3. Use program code 85390 when working these USDA cases.

(12) Preparer Taxpayer Identification Number (PTIN) Application Payments: PTIN application payments intended for processing by an outside vendor may be deposited in error by IRS. If the payment has not posted to a taxpayer's account, it may be refunded back to the taxpayer from the XSF using CC XSREF. Prepare Letter 3064C IDRS Special Letter with a statement requesting that the taxpayer send the payment to:
IRS Tax Professional PTIN Processing Center
104 Brookeridge Drive Suite 5000
Waterloo, IA 50702-5702

(1) Use CC ENMOD to research current entity information. If the address needs to be changed, use CC INCHG (IMF) or CC BNCHG (BMF) to record the updated information. Address changes can be made in the following instances:

1. When clear and concise written notification is received from the taxpayer. A statement signed by the taxpayer informing the Service to change the address of record is considered clear and concise notification. The statement must also contain the taxpayer's full name, signature, old address, and social security number and/or employer identification number.

2. Whenever correspondence (including notices and envelopes) sent by the Service that requires a response is returned by the taxpayer with corrections marked on the taxpayer's address information, the correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature on the correspondence is not required.

3. Address changes can be taken from the taxpayer over the telephone. The history sheet must be annotated and remain with the case. If for any reason you do not feel comfortable taking the information over the telephone, ask the taxpayer to submit the information in writing. See IRM 21.1.3.20, Oral Statement Authority.

(2) The proper sequence of actions is:

1. CC ENMOD to ensure the entity is on the file and to determine the current address on IRS records.

2. CC ENREQ to generate the CC INCHG or CC BNCHG format.

3. Overlay generated CC INCHG or CC BNCHG with new address information.

(3) Correspondence must be answered within 30 calendar days of the earliest "IRS–received" date; however, every effort will be made to provide quality responses in less time. If it is not possible to respond within this time period, send an appropriate interim response which includes:

1. The reason for the delay;

2. When a final response may be expected; and,

3. Employee contact information.

Note: Record this action on the history sheet.

(4) When closing a credit from the XSF, take all necessary action to avoid future problems for the taxpayer. For example, quality or managerial case review may indicate that a TC 570 should have been originally input to prevent the account from refunding. CC FRM77 may be used to input specified transactions to any module on IDRS. To use FRM77, the proper sequence of actions is:

1. CC TXMOD to ensure that the module is on the TIF.

2. CC REQ77 to generate CC FRM77.

3. Overlay generated CC FRM77 format with new data after the prompts.

4. CC FRM77 will generate one transaction; CC FRM7A will generate up to 11 transactions—one transaction for each line of valid input.

Note: Refer to IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, for information about using any of the above CCs.

(1) First line managers of personnel working XSF cases will conduct periodic reviews (at least quarterly) of cases assigned to all employees to ensure effective operational internal controls. The purpose of the review process is to ensure that employees are properly processing cases in a timely manner. Additional IDRS training, research guidance or counseling may be warranted if deficiencies are noted.

(2) A copy of the managerial reviews will be sent quarterly via e-mail to the headquarters XSF Accounting analyst by the 15th of the month following the quarter.

(3) Managers will review 6800 cases in "OPEN," "FROZ" and "IDEN" status, monthly. Select sample cases from the URF50 (XSF), Control D Report Name "XS Case Assign List," with reference to URF01 (XSF), section Monthly Excess Collection 6800 Analysis Report, as described in Exhibit 3.17.220-1, "Sample Selection for Normal Managerial Review (Table 1)," and Exhibit 3.17.220-2, "Sample Selection for Accelerated Managerial Review (Table 2)."

(4) Determine ending inventory volume or "New XSF Balance" from monthly URF01 (XSF) listing.

(5) See Exhibit 3.17.220-1 (Table 1) for determining the sample selection.

1. Identify appropriate range within which the inventory volume determined in (5) falls within the most left-hand column of Table 1. All sampling information needed for the month's managerial review is found in the various columns of this line of Table 1.

2. Begin sample selection on the page of the XS Case Assign List shown in the second column from the left of Table 1.

3. Counting down from the first case at the top of the identified page of the XS Case Assign List, select the first case for review as directed in the third column from the left of Table 1.

4. The most right-hand column of Table 1 identifies the XS Case Assign List page locations of the remaining cases to be selected for review. Add the number shown in the most right-hand column of Table 1 to the page number in 2; the next case to be selected for review will be on that page on the same line identified in 3.

5. Continue this procedure until there are no more pages in the XS Case Assign List. Use all pages, even if not completely full of cases. If the needed line number of the selected page is blank, select the first case at the top of that page for this selection only. Any case may be reviewed more than once while it is in Account 6800.

(6) For example:

1. The monthly 6800 URF01 (XSF) listing shows an ending inventory of 16,704.

2. The first case to be selected for that month's managerial review is the fourteenth case from the top of page nine of that month's XSF50 assignment listing.

3. The second case selected for review is the fourteenth case from the top of page twenty-four of the XSF50. If page twenty-four shows only eight cases, the first case at the top of the page becomes the second selection.

4. The third case selected for review is the fourteenth case from the top of page thirty-nine, etc.

(7) After the complete sample is selected and the identified case pulled, the manager may begin the review which must be completed before the end of the current month.

(8) Should the review indicate that fewer than 95% of the reviewed cases have been acted upon properly, both Tables 1 and 2 will be used to select samples for the next monthly managerial review.

(9) In addition to the case load reviews, the following output listings shall be sample reviewed to ensure that adequate and proper actions are being taken by all employees:

1. Restricted Apply Register (URF0340)—quarterly review and

2. Dropped Listing (transfer from Excess Collections File)—annual review. The Control D Job Name is URF50, with Report Name "XCESS COLL DROP LST1".

(1) A monthly listing of all credits in" OPEN" status with a received date of three years or less is generated during the month end processing for inclusion in the URF45. This listing will consist of the Excess Collection number, taxpayer name, TIN, MFT, tax period, balance amount, received date and source code sorted by TIN and tax period. See Figure 3.17.220-18

(2) Credits included on this list must be reviewed every six months for a period of one year.

(3) The total number of "OPEN" status cases will be listed as a starting count of receipts reported to the Work Planning & Control System (WP&C) weekly using program 710-37605. A count of closures will be taken for cases in which the credit was applied, or the correspondence suspense time has expired. Closures will be reported each week with the overall inventory being reduced to zero at the end of the review period.

(4) Research will be conducted on each credit as described in IRM 3.17.220.2.8 and its subsections. Use CC XSINQ to research each record for the last action taken. The original Form 8758 may need to be reviewed if CC XSINQ does not provide enough information to determine the next action.

(5) If a credit cannot be applied, contact the taxpayer to request needed information as described in IRM 3.17.220.2.9. Internet research will be used by all BODs in an attempt to locate taxpayers. Several sites (Accurint, Google, SEC, ZABASearch, EDGAR, VIVISIMO and SWITCHBOARD) can be used to locate a phone number or address if one cannot be obtained through IDRS or Directory Assistance.

1. Research for the most current or other available addresses should be done. Use this information when addressing correspondence.

2. If a new address is found, update the XSF record using CC XSENT.

3. Contact with the taxpayer will be initiated once every six months for a period of one year. Be very careful not to make an unauthorized disclosure. Refer to IRM 11.3.1, Introduction to Disclosure and IRM 11.3.3, Disclosure to Designees and Practitioners and IRM 21.1.1.4, Communication Skills.

   Note: When a case appears on the URF45 OPEN listing, and correspondence or telephone contact has been initiated within the previous 45 days, do not make contact again. Additional contact will be made within the next Open Status Review period.

(6) When contacting the taxpayer by letter, suspend the case for 45 days.

1. If a reply is received, resolve the case according to the taxpayer's request.

   Note: If the taxpayer requests that the payment is refunded or applied to a tax module, make sure that the case is documented.

2. If no reply is received after 45 days case will remain in "OPEN" status. A new letter will be required to be mailed during the next six-month review. Add the count as a closure.

3. If correspondence is returned undeliverable, search for a better address and resend the letter if found. Suspend for additional 15 days. Update XSF with the new address using CC XSENT.

4. If correspondence is returned undeliverable and no better address is found, suspend case. Research for a better address during subsequent six month review will be required. If a better address still cannot be found, no follow-up letter is required. Add the count as a closure.

(7) A narrative will be added to the record each time research is conducted or an action is taken (i.e., phone call, correspondence) using CC XSENT. This narrative should provide enough information to allow for future follow-up.

(8) A history sheet will be used to document actions taken. The documentation will include such items as taxpayer contact and responses, CCs researched, copies of any documents requested, dates of action taken, etc.

(9) Some cases may need to be suspended while awaiting taxpayer response or requested documents. This suspense system must facilitate timely follow-up actions and may be accomplished by means deemed appropriate.

(10) If research reveals a condition on the taxpayer's account that would not allow for application of the credit, change the status to "IDEN" using CC XSENT and add the count as a closure. See also IRM 3.17.220.2.3 for status code explanations.

(1) Reports are viewed on the IRS electronic depository, "Control D" website. Retention of electronic reports is the same as paper records and is listed in Document 12990.

(2) URF01 (XSF) Excess Collection 6800 Analysis Report

1. Daily inventory lists prior balance, new accounts added (through CC XSADD), URF accounts added, Statute Expired accounts added, adjustments, accounts closed, partial applications, open accounts dropped, voided accounts, and new balance by both count and dollar amount for each area processed by the campus.

2. Report is divided by accounts with separate information shown for both 6800 and 9999.

3. Report also includes summaries for the campus.

4. Control D Report Name is URF0115.

(3) URF01 (XSF) Monthly Excess Collection 6800 Analysis Report

1. Monthly inventory summarizes activity for the fiscal month in the same format described in (1) above.

2. This report will be submitted monthly to headquarters as described in IRM 3.17.41, Accounting and Operating Reports, and IRM 3.17.220.2.19. See Figure 3.17.220-10

3. Control D Report Name is URF0115. To find the monthly report, use the last day of the month Run Date.

(4) URF03 (XSF)—Transaction Register

1. XS ADD Register shows the excess collections control number and amount for each item added to the XSF by area location code (ALC). Subsequent pages of this register summarize the ALC totals of these items by tax class, count and amount for all source codes such as nullifieds and rejects. See Figure 3.17.220-11



2. The XSF NMF Apply Register lists the XSF control number, the taxpayer's name and address, TIN, tax period, 23C date/location code, form number and other information including amount and "Remarks." See Figure 3.17.220-12



3. The XSF Transfer Apply Register lists the XSF control number, taxpayer's name and address, amount, employee number and other information. See Figure 3.17.220-13



4. The XSF Restricted Apply Register shows the type of void application, XSF control number, amount and employee number. As most XSF computer-generated reports, a later page of this listing summarizes the area data into campus volume and amount totals. URF03 (XSF) is a daily report. See Figure 3.17.220-14

(5) URF05 (XSF)—XSF Applications for IMF and BMF Controls.

1. Daily report lists completed XSAPL "M"s in DLN order across the page.

2. Summary breaks down total records applied by master file, showing volume of records, applications updated, and amounts applied.

3. See Figure 3.17.220-15

(6) URF07 (XSF)—Excess Collections File Performance Indicator Analysis

1. Weekly inventory lists both dollar amount and count for prior balance, receipts, closures and new balance of each source code within the XSF.

2. Totals of prior balance, receipts, closures and new balance agree with URF01 (XSF) inventory report of the same date.

(7) URF45 (XSF) —Accounts Receivable XSF/6800 Report

1. URF45 (XSF) is a monthly report in two parts to aid in case management and to provide input to headquarters.

2. The first pages of URF45 (XSF) list large-dollar cases in descending order by money amount and show their DLN, name control, IRS-received date, entry date to the XSF, current amount of the credit and cumulative amount of the credit plus all others above it in the listing. See Figure 3.17.220-16



3. The second part of URF45 (XSF) is an inventory printed in duplicate showing volume and amount of the beginning total inventory, beginning inventory of $25,000+ credits, total receipts during period, receipts of $25,000+ credits during period, total closures during period, closures of $25,000+ credits during period, ending total inventory, and ending inventory of $25,000+.

4. The second part of URF45 (XSF) does not include true statute credits. A legend states volume and amount of these excluded items.

5. The second part of URF45 (XSF) also shows volume and dollar amount of $25,000+ beginning inventory, closures and ending inventory for still-open credits added to the XSF in the immediately preceding fiscal year. See Figure 3.17.220-17



6. One copy of the second part of the URF45 (XSF) is to be retained in unit records and the other, accompanied by any required narrative, sent to Planning & Analysis Staff.

7. The third part of the URF45 (XSF) is a listing of all "OPEN" status cases that have a received date less than three years old. This listing will be worked as referenced in IRM 3.17.220.2.17. See Figure 3.17.220-18

(8) URF50 (XSF)—Transaction Register

1. XSF Balance Amount Drop List (Control D Report Name XCESS COLL DROP LST3), contains records which have been dropped from the IDRS XSF. Items are listed by balance amount and include XSF control number, name control, IRS-received date and date of entry to the XSF. This listing will be destroyed 7 years after the end of the processing year. See Figure 3.17.220-19



2. XSF Alpha Drop List (Control D Report Name XCESS COLL DROP LST1), contains records which have dropped from the IDRS XSF. This includes closed records and records with an XSF balance amount dropped 7 years from the entry date in to the XSF. They are listed alphabetically by taxpayer's name and include much of the information stored on the XSF record. This listing will be destroyed 7 years after the end of the processing year.

3. XS Case Assign List shows all cases on the XSF by the employee number of the person to whom the case is assigned, if different from that of the employee who used CC XSADD. This report is secondarily sorted by file entry date and includes the name control, XSF control number, the balance amount and the journal account number. A new page begins whenever there is a change in employee number. This report has no summary. See Figure 3.17.220-20

(9) XSF52—Accounts Closed to 9999, Revenue Clearance Accountability

1. All records in Account 6800 (Excess Collection) at close of business the last day of the fiscal year will be changed to Account 9999.

2. An annual register (XSF52) will be generated, listing these records in DLN sequence. Counts and amounts will be summarized by Area Office. See Figure 3.17.220-21

(10) URF60 (XSF)—Monthly National Excess Collections Analysis

1. Monthly inventory summarizes activity for the fiscal month in the same format used for the URF01 (XSF). Also includes a File Source Code Report and File Apply Code Report.

2. Report is divided by accounts with separate information shown for both 6800 and 9999.

3. A separate report is generated for each campus and includes a national roll up.

4. The report is available on the Control D web site. (See Figure 3.17.220-22 and Figure 3.17.220-23a).

(1) Receipt and production data for the weekly WP&C Managers Report will match the staff hour reporting period ending Friday or Saturday as directed in IRM 3.30.50, Project PCA Production Control Accounting.

(2) "Receipt Volume" for the WP&C will always equal "Actual Production" to achieve zero inventory for the OFP 710–37600. Since, by the nature of the inventory, few XSF cases are closed, actual work performed rather than cases closed is measured to yield a meaningful production rate. Therefore, for planning purposes, managers will use the URF01 (XSF) listings (inventory) in conjunction with the production data from the WP&C.

(3) To derive production data for the period for WP&C, add the following:

1. From listing URF01 (XSF) for Account 6800 —"New accounts added," "Accounts closed" and "Voided accounts."

2. From listing URF01 (XSF) for Account 999X —"Accounts closed" and "Voided accounts."

(4) Monthly computer-generated excess collections inventory reports for both Accounts 6800 and 9999 (URF01 (XSF)) are to be used as the source data for input to the MISTLE report.

(5) "Receipt Volume" for OFP 710–37605 will be reported to the WP&C during the months of January and July when the OPEN List is received as referenced in IRM 3.17.220.2.17. "Actual Production" will be reported to the WP&C weekly to achieve zero inventory by the end of the six month period.

(6) An Inventory Report must be submitted to Excess Collection Headquarter Analyst weekly, located on the Excess Collections Share Point site folder for each site. The Weekly Report must be submitted to Headquarters by the 1st. business day after the prior week.