3.8.46. Discovered Remittance

(1) Program Scope and Objectives: Cash and non-cash remittances found outside of the Receipt and Control Extracting and Deposit secured/restricted (Limited) area are "discovered remittances." Cash found inside the Receipt and Control Extracting secured/restricted (Limited) area is also considered a "Discovered Remittance."

1. Purpose of the program: To ensure taxpayer payments that for some reason were not processed through the normal processing of remittances are identified and expedited for remittance processing in the appropriate secured manner when discovered. This expeditious and secure process is important to ensure that taxpayer accounts are updated as quickly as possible to prevent any detrimental circumstances that may occur because of the untimely processing of the payment.

2. Audience: This IRM prescribes procedures for all Campus employees who discover remittances outside of the mail opening operation and deposit areas in the restricted (Limited) area of the Submission Processing Receipt and Control Operations. This IRM also prescribes procedures for discovered cash inside the Extracting area of the restricted (Limited) area of Submission Processing Receipt and Control Operations.

3. Policy Owner: Director Submission Processing.

4. Program Owner: Headquarters Accounting Services Section in the Accounting and Tax Payments Branch within Submission Processing under Wage and Investment Business Operating Division Customer Account Services.

5. Primary Stakeholders: The Submission Processing Receipt and Control Deposit function.

(2) All campus employees identifying discovered remittances that are cash or gold coins (U.S. currency only,) or other items of value, including personal checks, money orders, cashier’s checks, business checks, certified checks, voucher checks, treasury checks, draft/postcard type checks, travelers checks, and credit, debit, and gift cards, must immediately notify their unit manager or designee. A manager or designee must be available at all times during business hours to receive and immediately log the discovered remittances on Form 4287, Record of Discovered Remittances. The cash must be counted by the unit manager or designee and witnessed by the discovering employee when found in any function. Notate on Form 4287 in the "Name" column with the following, "Cash counted and verified." When needed, more than one line can be used to record information on Form 4287. Ensure the discovering employee and unit manager initial the Form 4287 in the appropriate column to verify the cash has been counted and verified. Product Catalog Information for Form 4287 can be found on the Electronic Publishing Web Site at: http://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=41515

1. When a credit or debit card is discovered, record only the last four digits of the credit or debit card number, the expiration date, the taxpayer's name and social security number (SSN) on Form 4287. (The last four digits of the credit or debit card number and the expiration date mustbe entered in the "Type of Remit" column).

(3) If the remittance is attached to a tax return, the remittance and tax return must be processed together following the instructions below.

1. If a payment is received with a valid U.S. federal tax return and a Form W-7, Application for IRS Individual Taxpayer Identification Number, for the primary taxpayer, the payment will be posted with a temporary number until the individual taxpayer identification number (ITIN) application is processed and an ITIN assigned. Attach a copy of the Form 3244, Payment Posting Voucher, to the Form W-7 or Form W-7SP (Spanish) and tax return.

1. If a single remittance is discovered and more than one return is attached, enter the total amount of the remittance in the "Amount of Remit" column on Form 4287 (This is a split payment). Enter "Split" on the next line under the "Amount of Remit" column along with the number of returns that were received with the remittance.

   Example: if three returns were received, enter "Split 3."

   
   
   Enter the taxpayer’s name and SSN on Form 4287 in the appropriate columns. For each return associated with the check, enter the type of document and the related tax period in the appropriate columns on Form 4287.

2. An entirely blank check with a tax return is not considered a discovered remittance if the check has "Non-Negotiable" or "VOID" stamped or written on the check. Leave the blank check attached to the document. If the blank check is loose and not associated with a document, then it must be routed to Receipt & Control on Form 4287.

3. If "Non-Negotiable" or "VOID" is not written on the blank check, it must be routed to Receipt & Control on Form 4287.

(4) Campus employees must prepare a Form 3244, Payment Posting Voucher, for every taxpayer associated with the discovered remittance. Locally, Receipt and Control will coordinate Form 3244 preparation responsibilities with pipeline production operations. The current version of Form 3244will be used, and can be found on the Publishing Website at https://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=22215 Preparation of Form 3244 is outlined below. The remittance and Form 3244 must then be processed together following further instructions below:

1. SSN/EIN - Enter the taxpayer's SSN, ITIN or employer identification number (EIN).

2. Form Number/MFT - Enter the Master File Tax (MFT) account code (reference Document 6209).

3. Tax Period - Enter the tax period in YYYYMM format.

4. Transaction/Received Date - Enter the date the payment was received or the postmark date, if applicable in MM-DD-YYYY format.

   Note: The integrity of the IRS received date must be maintained. All payments must be credited with the earliest received date by the IRS or Department of Treasury. If a remittance is discovered in pipeline processing and the IRS received date is missing, the received date on the Form 9382, Batch/Block Tracking System (BBTS) Batch Transmittal can be used. If the received date cannot be determined, use the postmark date on the envelope. If no envelope is provided or if the postmark date is illegible, use the date of the remittance as the received date. When multiple received dates are stamped on the source document, review all of the available information (i.e., source document, postmark on envelope, date on remittance, etc.) to appropriately determine the official IRS received date stamp of the discovered remittance.

5. Taxpayer Name, Address and ZIP Code - enter the taxpayer's last name, first name and the complete address.

6. Debit Transaction Data Amount - Enter one secondary assessment transaction code with dollars and cents. If the transaction code is 570, enter "00" or "blank" in the money field.

7. Credit Transaction Data Amount - Enter the credit transaction code with dollars and cents. Enter the appropriate Designated Payment Code in the indicator box (see Document 6209).

8. Remarks - Enter appropriate remarks when necessary, such as Plan Number for Tax Exempt/Government Entities (TE/GE) and Employee Plans Master File (EPMF) forms and documents.

9. Prepared by - Enter the employee number or the employee's name and unit.

(5) If the remittance is found with no tax return and you are unable to determine the correct taxpayer account, the campus employee must prepare a Form 3244 (see IRM 3.8.46.1(4) above) with as much information as possible. The Receipt and Control function will apply the payment utilizing Unidentified procedures in IRM 3.8.45.11.3, Unidentified Remittances.

(6) Discovered remittances must be forwarded to Receipt and Control daily with the Part 1 (Redirect to Originator after R&C) white copy and Part 2 (Retain by R&C) pink copy of the three part Form 4287. Discoverer will retain part 3 (Retain by Originator) yellow copy. The electronic Form 4287 found on the Electronic Publishing Web Site may also be used. Please ensure the correct copy of the three part form is being retained or delivered. If utilizing the electronic version, ensure all parts of Form 4287 are individually dated and initialed by all parties, or carbon paper may be utilized.

(7) All discovered remittances that are 30 days or older must be researched by the Payment Perfection Unit (PPU) in Receipt and Control, if discovered in a Submission Processing Campus. If the remittance is discovered at a Campus Support location, the Campus Support Payment Perfection function will conduct the research. If appropriate, action must be taken to prevent adverse taxpayer impact. Refer toIRM 3.8.45.5.7.1(1), Discovered Remittances Over 30 Days Old.

(8) Each unit manager or designee will maintain a daily Form 4287, Record of Discovered Remittances, to record discovered remittances.

(9) A sequential number beginning with 001 must be assigned to each Form 4287 that is prepared throughout the current January through December calendar year. (i.e., if 50 Forms 4287 have been completed throughout the year they must be numbered 001 thru 050). The number must be placed in the upper left hand corner of Form 4287.

(10) Before any sealed package containing a Form 4287 and related discovered remittances can be released to the designated employee that will hand-deliver the package to another employee or site, the designated employee must complete Form 4287B, Form 4287 Courier Log for Discovered Remittances. The number assigned to the Form 4287 must be noted in the first column of the Form 4287B.

(11) Responsibilities: Follow up with Receipt and Control if Part 1 of Form 4287 has not been received by the initiator within seven (7) business days. The unit manager must reconcile Part 1 with the Part 3 within seven (7) business days after the date the discovered remittance was sent to Receipt and Control to ensure the discovered remittance was received by Receipt and Control for processing. If unable to obtain Part 1 back from Receipt and Control, ensure IDRS research is completed verifying the payment has posted to the taxpayer's account. Attach the IDRS print to Part 3 of the Form 4287. If the payment has not posted to the taxpayer's account or has not been identified in Unpostables function inventory, the unit manager will report any discrepancies to the Submission Processing Receipt and Control manager and document the contact. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

(12) The area that initiates the Form 4287 will retain the Form 4287 and the Form 4287B for one year after the end of the processing year.

(13) Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

(14) Related Resources: According to IRM 1.4.6.3.1, Minimum Protection Standards (MPS), a locked container is any metal container with riveted or welded seams which is locked and to which the keys and combinations are controlled per IRM 1.4.6.3.6(2), Key and Combination Control. Keys to the locked container never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the manager or manager designee when not in use.

(15) Related Resources: All safes or vaults with a combination lock used to store discovered remittances, discovered cash or items of value until delivered to the Submission Processing Receipt and Control deposit function, must adhere to guidelines established in IRM 10.2.14.5.3, Control and Safeguarding Of Keys and Cipher Lock Combinations. Ensure Form 700, Security Container Information, is placed inside the safe and is current. The combination must be changed whenever the following occurs:

• When the safe or lock is originally received.

• At least once every three years.

• When an employee who knows the combination retires, terminates employment or transfers to another office job.

• Whenever the combination is compromised.

(16) IRM Deviation Statement: IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2., Internal Management Documents System - Internal Revenue Manual (IRM) Process., and elevated through appropriate channels for executive approval.

(17) Program Controls/Program Management and Review: At least once a year a HQ Analyst will conduct an unannounced internal security review of the discovered remittance process throughout the IRS organization at the consolidated campuses to ensure compliance with IRM guidelines. Each campus will also do monthly reviews of randomly selected areas throughout the consolidated campuses as part of the Internal Controls Review program coordinated by the Coordination and Support Section of the Submission Processing Program Management/Process Assurance Branch.

(18) Authority:

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

2. 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.

3. The IRS frames internal controls by principles outlined in Standards for Internal Control in the Federal Government, GAO-14-704G. Internal control is a process used by management to help achieve its objective.

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

5. Ethical conduct for federal employees is explained in Document 9300 14 General Principles of Ethical Conduct for Federal Employees (5 C.F.R. 2635.101(b).

(19) Background: This IRM stresses the importance of immediate and secure routing of discovered remittances to the Receipt and Control Operations Deposit Function to ensure taxpayer’s payments are properly credited to help prevent possible detrimental circumstances that may occur because of the delay in processing the payment. This IRM provides instruction to various operations throughout IRS campuses according to their location concerning the secure handling of discovered remittances for routing to the Submission Processing Receipt and Control Deposit Function.

(1) All campus employees identifying discovered remittances that are cash or other items of value, including credit, debit and gift cards must immediately notify their unit manager or designee. A manager or designee must be available at all times during business hours to receive and immediately log the discovered remittances on Form 4287. The cash must be counted by the unit manager or designee and witnessed by the discovering employee when found in any function. After counting discovered cash, notate "Cash counted and verified" in the "Name" column of Form 4287. Ensure the discovering employee and unit manager initial the Form 4287 in the appropriate column to verify the cash has been counted and verified.

(2) When postage stamps are discovered and their total value is less than $3.00, cross through the stamps and permanently affix them to the related return or document without obscuring taxpayer information or data. Retain the return or document with the regular work.

1. Discovered postage stamps valued at $3.00 or more must be recorded on Form 4287 and forwarded to Receipt and Control for further processing. On Form 4287, enter "U.S. Postage Stamp" (or the appropriate descriptive information) in the "Type of Remit" column and enter the amount/value of the stamp in the "Amount of Remit" column.

2. If the value of the stamp cannot be determined, complete Form 4287 and forward to Receipt and Control, however enter "NA" (for not available) in the "Amount of Remit" column on Form 4287.

(3) Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

(1) Any processing employee identifying cash or items of value, including credit cards, debit and gift cards must immediately notify the unit manager or designee.

(2) The cash must be counted by the unit manager or designee and witnessed by the discovering employee.

(3) The manager or designee will immediately record the remittance on the daily cash or other items of value on Form 4287.

(4) The manager or designee will place the cash or item of value into a sealed envelope.

(5) A manager or designee must be available at all times during business hours to receive remittances.

(6) If not delivered immediately to the Deposit Unit, the manager or designee must store the envelope in a locked safe (If the amount to be stored is less than $1,000, a locked security container may be used). See IRM Exhibit 10.2.15-2, Protectable Items, for requirements. Also see IRM 3.8.46.1(14) for guidance concerning security of discovered remittances that must be placed in a safe or vault until they are routed to the Submission Processing Receipt and Control Deposit function; and for ordering Form 700 for safes or vaults with a combination lock.

(7) According to IRM 1.4.6.3.1(3)c, Minimum Protection Standards (MPS), a safe-type container is one of the following:

• A safe-type container accepted for general use by the Service, General Services Administration (GSA), or Underwriters Laboratories (UL) Listing (Consult your local Physical Security and Emergency Preparedness security office).

• Approved vaults by IRS and GSA.

(8) At least once per day (or once weekly for campuses depositing cash on a weekly basis), prior to close of business, a clerk must hand-deliver the sealed envelopes and Part 1 and Part 2 of the daily cash or other items of value Form 4287 to the Deposit Unit; or a clerk from the Deposit Unit may pick up the sealed envelopes and Part 1 and Part 2 of the daily cash or other items of value Form 4287. The initiating manager will retain Part 3 of Form 4287 for their records. The clerk must complete Form 4287B, Form 4287 Courier Log for Discovered Remittances, before the sealed envelopes are released for hand-delivering to the Deposit Unit. The number assigned to Form 4287 must be shown in the first column of Form 4287B.

(9) The sealed envelopes must be opened in the presence of the Extraction Unit and the Deposit Unit employees.

(10) If no cash or items of value are found, a SEPARATE Form 4287 must be prepared for EACH BUSINESS DAY that no cash or items of value were discovered. "No Cash" must be annotated in large letters across the form along with the date.

(11) All items noted on the copy of the daily cash or other items of value Form 4287 will be initialed by the Deposit Unit clerk to acknowledge receipt.

(12) If items are missing, the employees will immediately notify the Deposit Unit manager. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

(13) Part 1 of the daily Form 4287 with the initials acknowledging receipt will be returned to the sending unit.

(14) Within seven business days after the date the cash or other items of value were hand-delivered to Deposit or picked up by Deposit, the unit manager will reconcile Part 1 of the Form 4287 to Part 3. Once this is done, the unit manager will initial and date the box at the bottom of Part 1 and staple Part 1 and Part 3 together. The purpose of the reconciliation is to ensure that all cash or items of value sent to the designated Receipt and Control function were received.

(15) Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

(16) Both Part 1 and Part 3 of the daily Form 4287 will be retained for one year after the end of the processing year.

(17) Using the latest date shown on Form 4287B, Form 4287 Courier Log for Discovered Remittances, as the basis, the function that initiates the Form 4287B must retain the Form 4287B for one year after the end of the processing year.

(18) Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

(1) The manager or designee will immediately record the remittance on the daily Form 4287.

(2) A manager or designee must be available at all times during business hours to receive remittances.

(3) A single unit, branch or operation may be designated to receive remittances from several surrounding units.

(4) After immediately recording the remittance on the daily Form 4287, the remittances and Form 4287 will be placed in a locked container.

(5) According to IRM10.2.14.3.3(2) , Minimum Protection Standards (MPS), a locked container is "any metal container with riveted or welded seams which is locked and to which the keys and combinations are controlled." Keys to the locked container must never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the manager or manager designee when not in use. See IRM 3.8.46.1(14) for guidance concerning security of discovered remittances that are placed in a safe or vault until they are routed to the Submission Processing Receipt and Control Deposit function; and for ordering Form 700 for safes or vaults with a combination lock.

(6) At least once per day, the manager or designee will remove the remittances, Form 3244 (See IRM 3.8.46.1 (4) and (5)) IRM 3.8.46.1and Part 1 and Part 2 of Form 4287 (Part 3 will be retained by the manager) from the locked container and must be secured using one of the following methods:

1. Sealed in an envelope and placed in a lockable canvas bag.

2. Double-wrapped and double-sealed in opaque paper envelopes or boxes.

Note: If the discovering unit is located in the same building as the Campus Support function, the discovered remittance may be placed in a sealed envelope only if hand-delivered to Campus Support. The envelope must contain the same information on the envelope as notated below in IRM 3.8.46.4(7).

(7) The inside envelope or box is required to contain the following:

1. The name of the Campus Support person authorized to open the package.

2. The address, including mail stop number, of the receiving Campus Support office.

3. The return address (including mail stop number) of the office mailing the package.

(8) The outside envelope, box or lockable canvas bag is required to contain the following:

1. The office name and address (including mail stop number) of the receiving Campus Support office.

2. The return address (including mail stop number) of the office mailing the package.

3. Campus Support requires that a photocopy of Form 4287 must be attached.

(9) Form 4287B, Form 4287 Courier Log for Discovered Remittances, must be completed by the courier before the sealed envelope is released to Campus Support. The number assigned to the Form 4287 must be shown in the first column of Form 4287B.

(10) Campus Support has capability to process payments through Remittance Strategy for Paper Check Conversion (RSPCC) and must process discovered remittances if possible. Campus Support instructions for processing discovered remittances can be found in IRM 21.1.7.9.20, Discovered Remittance. If for some reason the discovered remittance cannot be processed through RSPCC, the remittances, Form 3244, Part 1 and Part 2 of the Form 4287 must be sent by overnight traceable mail to the designated Receipt and Control site. The initiating manager will retain Part 3 of Form 4287 for their records.

(11) The remittances must be stored in a locked container, as described in IRM 3.8.46.4(4) and (5), until picked up by the overnight mail company. Remittances are not to be left unattended pending pickup by the overnight mail company.

(12) The receiving employee within Submission Processing Receipt and Control will initial beside each of the remittances on the Form 4287 to indicate the remittance has been received and the information on the Form 4287 is correct.

(13) On the day of receipt, the receiving employee will return Part 1 of Form 4287 to the sending unit manager or designee.

(14) Within seven business days after the date the discovered remittance was sent to Submission Processing Receipt and Control, the unit manager will reconcile Part 1 of the Form 4287 to Part 3. Once this has been done, the unit manager will initial and date the box at the bottom of Part 1 and staple Part 1 and Part 3 together. The purpose of the reconciliation is to ensure that all remittances sent to the designated Receipt and Control function were received. If unable to obtain Part 1 back from Receipt and Control, ensure IDRS research is completed verifying the payment has posted to the taxpayer's account. Attach the IDRS print to Part 3 of the Form 4287. If the payment has not posted to the taxpayer's account or has not been identified in Unpostables function inventory, the unit manager will report any discrepancies to the Submission Processing Receipt and Control manager and document the contact. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting.

(15) Both Part 1 and Part 3 of Form 4287 will be retained for one year after the end of the processing year.

(16) Using the latest date shown on the Form 4287B as the basis, the function that initiates the Form 4287B must retain the Form 4287B for one year after the end of the processing year.

(17) Management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed.

(1) Remittances collected by field office employees are not discovered remittances for purposes of IRM 3.8.46. Field office employees that collect remittances must transmit collected remittances on the day of receipt or as soon as possible the next business day. Refer to IRM 3.8.47.5.4, Procedures for Sending Tax Receipts to a Submission Processing Center, and Addresses for Field Office Employee-Collected Remittances.

(1) Industry Partners identifying discovered remittances that are cash or gold coins (U.S. currency only,) or other items of value, including personal checks, money orders, cashier’s checks, business checks, certified checks, voucher checks, treasury checks, draft/postcard type checks, travelers checks, and credit, debit, and gift cards, must immediately notify their Industry Partners manager or designee and immediately notated on Form 4287, Record of Discovered Remittance.

(2) If cash is discovered, the cash must be counted by the Industry Partner manager or designee and witnessed by the discovering employee when found. Notate on Form 4287, in the "Name" column with the following, "Cash counted and verified." When needed, more than one line can be used to record information on Form 4287. Ensure the discovering employee and Industry Partner manager initial the Form 4287 in the appropriate column (Discoverer columns) to verify the cash has been counted and verified.

(3) When a credit, debit, or gift card is discovered, record only the last four digits of the credit, debit, or gift card number, the expiration date, the taxpayer's name and social security number (SSN) on Form 4287. (The last four digits of the credit, debit, or gift card number and the expiration date will be entered in the "Type of Remit" column on Form 4287).

(4) If the remittance is attached to a tax return, the remittance and tax return must be processed together following the instructions below.

1. If a payment is received with a valid U.S. federal tax return and a Form W-7, Application for IRS Individual Taxpayer Identification Number, for the primary taxpayer is attached, send the tax return, Form W-7 or Form W-7SP (Spanish) and the payment to IRS.

2. If a single remittance is discovered and more than one return is attached, enter the total amount of the remittance in the "Amount of Remit" column on Form 4287 (This is a split payment). Enter "Split" on the next line under the "Amount of Remit" column along with the number of returns that were received with the remittance. For Example: if three returns were received, enter "Split 3." Enter the taxpayer’s name and SSN on Form 4287 in the appropriate columns. For each return associated with the check, enter the type of document and the related tax period in the appropriate columns on Form 4287.

3. An entirely blank check with a tax return is not considered a discovered remittance if the check has "Non-Negotiable" or "VOID" stamped or written on the check. Leave the blank check attached to the document. If the blank check is loose and not associated with a document, then it must be routed to IRS Receipt & Control on Form 4287. If "Non-Negotiable" or "VOID" is not written on the blank check, it must be routed to IRS Receipt & Control on Form 4287.

(5) After immediately recording the remittance on the Form 4287, the remittances will be placed in a locked container. According to IRM 10.2.14.3.3(2) , Minimum Protection Standards (MPS), a locked container is "any metal container with riveted or welded seams which is locked and to which the keys are controlled." Keys to the locked container must never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the Industry Partner manager or manager designee when not in use.

(6) A sequential number beginning with 001 must be assigned to each Form 4287 that is prepared throughout the current January through December calendar year. (i.e., if 50 Forms 4287 have been completed throughout the year they will be numbered 001 thru 050). The numberwill be placed in the upper left hand corner of Form 4287.

(7) Discovered Remittances must be shipped to the appropriate campus the same day as they are discovered using overnight traceable carrier (UPS, FED-EX, or DHL) along with Form 4287. Please ensure all parts of Form 4287 are individually dated and digitally signed by all parties. The Industry Partner manager or designee will remove the remittances from the locked security container and secure in double-wrapped and double-sealed opaque(not see through) paper envelopes or boxes. The inside envelope or box is required to contain the following:

1. The name or title of the IRS person authorized to open the package.

2. The address, including mail stop number (M/S), of the receiving IRS Campus.

3. The return address of the office mailing the package (Industry Partner) including mail stop if applicable.

(8) The outside envelope, or box is required to contain the following:

1. The IRS campus name and address (including mail stop number (M/S)) of the receiving IRS campus.

2. The return address (including mail stop number (M/S)) of the office mailing the package (Industry Partner).

3. Campuses require a copy Form 4287 for each package sent to IRS.

(9) Form 4287B, Form 4287 Courier Log for Discovered Remittances, must be completed by the Industry Partner before the sealed envelope is released to UPS, FED-EX, or DHL. The number assigned to the Form 4287 must be shown in the first column of Form 4287B.

(10) Form 4287B will be maintained on the Industry Partners Share Point site Discovered Remittance folder and can be added to each time a package is mailed to an IRS campus or office.

(11) Before any sealed package containing a Form 4287 and related discovered remittances can be released to UPS, Fed-Ex, or DHL, the Industry Partner designated employee must complete Form 4287B Courier Log for Discovered Remittances. The number assigned to the Form 4287 (The number entered in the top left margin) must be noted in the first column of the Form 4287B.

(12) Please send an email containing the UPS, Fed-EX, or DHL tracking number, and attach PDF copies of Form 4287 and all copies of Form 3210 except the originator copy to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(13) The originator or sender (Industry Partner), who is accountable until the funds are received at the destination, must establish a control to ensure delivery of tax receipts and continually follow up until the package is confirmed as received at the destination.

(14) The sender (Industry Partner) must reconcile Form 4287 within seven (7) business days after the date the discovered remittance was sent to IRS to ensure the discovered remittance was received by IRS Receipt and Control for processing. 

(15) Follow up with ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if Form 4287 has not been uploaded to the Discovered Remittance Folder with Initials within seven (7) business days

(16) ) The Form 4287 will be maintained on the Industry Partner’s SharePoint site Discovered Remittance folder for one year after the end of the processing year, as required in Document 12990, IRS Records Control Schedule (RCS) 29, Item 137, to prevent inadvertent/unlawful destruction of records. Form 4287B will be maintained on paper and stored by the IRM 3.8.46.

(17) Industry Partner management must ensure that a hard copy of the most current IRM 3.8.46 is readily available near the locked container where discovered remittances are placed

(18) Submission Processing Campus Addresses for Discovered Remittances only:

Internal Revenue Service
ATTN: Manual Deposit Manager
M/S 6056
3651 S. IH 35
Austin, TX 78741

Internal Revenue Service
ATTN: Manual Deposit Manager
M/S 7777
333 W. Pershing Road
Kansas City, MO 64108-4302

Internal Revenue Service
ATTN: Pre-Batch Deposit Manager
M/S 6062
1973 N Rulon White Blvd.
Ogden, UT 84201

(1) Taxpayers or their representative are notified by letter from Criminal Investigation (CI) to submit the full voluntary disclosure submission to the Austin Campus to participate in the Voluntary Disclosure Practice (VDP) program. The submission must be sent in two separate parts, payments to Stop 1919, and other items to Stop 4301. See IRM 3.8.46.6(5) for complete addresses.

(2) If a taxpayer remittance is sent inadvertently to the CI Lead Development Center (LDC), then it is a discovered remittance. The manager will immediately record the remittance on the daily Form 4287 Record of Discovered Remittances,https://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=22215.

(3) After immediately recording the remittance on the daily Form 4287, the remittances will be placed in a locked container. According to IRM 1.4.6.3.1(3)a, Minimum Protection Standards (MPS), a locked container is “any metal container with riveted or welded seams which is locked and to which the keys and combinations are controlled.” Keys to the locked container must never be left out in the open or in an unlocked drawer or cabinet, they must be kept in a locked drawer or cabinet controlled by the manager or manager designee when not in use. See IRM 3.8.46.1(14) for guidance concerning security of discovered remittances that are placed in a safe or vault until they are routed to the Submission Processing Receipt and Control Deposit function; and for ordering Form 700 for safes or vaults with a combination lock.

(4) At least once per day, the manager or designee will remove the remittances from the locked container, and complete Form 14350, Voluntary Disclosure Practice Payment Posting Voucher,https://publish.no.irs.gov/cat12.cgi?request=CAT2&itemtyp=F&itemb=14350&items=*. Use Form 14350 (in lieu of Form 3244 Payment Posting Voucher). Form 14350 has a tabulating feature and space to record payment amounts for multiple tax years.

(5) Send Part 1 and Part 2 of Form 4287 Record of Discovered Remittances. (Part 3 will be retained by the manager) and send the completed Form 4287, remittances atop each completed Form 14350, via overnight traceable method to:

Internal Revenue Service
3651 S. I H 35 Stop 1919 AUSC
Austin, TX 78741
ATTN: Voluntary Disclosure Practice

All other required items from taxpayers must be sent to:

Internal Revenue Service
3651 S. I H 35 Stop 4301 AUSC
Austin, TX 78741
ATTN: Voluntary Disclosure Practice

(6) The remittances must be secured for shipment using one of the following methods:

1. Sealed in an envelope and placed in a lockable canvas bag

2. Double-wrapped and double-sealed in opaque paper envelopes or boxes.

(7) The inside envelope or box and the outside envelope, box or canvas bag is required to contain the following:

1. The receiving office address listed in IRM 3.8.46.6(5) above.

2. The return address of the office mailing the package.

(8) On the day of receipt, the receiving Austin Campus employee will send Part 1 of Form 4287 back to the LDC to the attention of the originator.

(9) Within seven business days after the date the discovered remittance was sent to the Austin Voluntary Disclosure Practice address, the LDC manager will reconcile Part 1 of the Form 4287 to Part 3. This is done by the unit manager initialing and dating the box at the bottom of Part 1 and stapling Part 1 and Part 3 together. The purpose of the reconciliation is to ensure that all remittances sent to the Austin Voluntary Disclosure Practice address located in the Austin Receipt and Control function were received. If unable to obtain Part 1 back from Austin Receipt and Control, ensure IDRS research is completed verifying the payment has posted to the taxpayer's account. Attach the IDRS print to Part 3 of the Form 4287. If the payment has not posted to the taxpayer's account or has not been identified in Unpostables function inventory, the unit manager will report any discrepancies to the Submission Processing Receipt and Control manager and document the contact. Losses must be reported following the procedures provided in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements.

(10) Both Part 1 and Part 3 of Form 4287 will be retained for one year after the end of the processing year.

(1) Job Aid for completion of Form 4287, Record of Discovered Remittances.

(2) Form 4287 is a three part form.

• Part 1 - Top White Copy labeled in the bottom margin (Redirect to Originator after RC). This completed copy will be sent to Receipt and Control (RC)/Campus Support along with the discovered remit. RC will initial, date and return to the originator for reconciliation.

• Part 2 - Second Pink Copy labeled in the bottom margin (Retain by RC). This copy will be taken to RC along with the Top White Copy and discovered remittance. Part 2 will be retained by RC for one year following the end of the processing year.

• Part 3 - Third Yellow Copy labeled in the bottom margin (Retain by Originator). This copy will be kept by the discovering function and reconciled with the Top White Copy received back from RC. Reconciliation within seven business days after the date the discovered remittance was sent to Receipt and Control by a management official is needed to verify RC received the discovered remittance. The Part 1 White Copy and Part 3 Yellow Copy will be retained by the Originator for one year following the end of the processing year.

(3) The following are descriptions of information that will be entered into each box on the Form 4287. If the information needed cannot be determined, enter UNKNOWN in the appropriate box:

1. Mail Stop# - Mail Stop of unit/operation discovering the remittance. Needed for Receipt and Control to return original Form 4287 (Redirect to Originator after RC) to originator.

2. Unit - Needed to identify which unit within an operation will receive the original Form 4287 back from Receipt and Control for reconciliation.

3. Telephone # - Telephone number of the function completing Form 4287, needed by Receipt and Control for any questions concerning information on the Form 4287.

4. Today’s Date - Record immediately the date remittance was discovered.

5. Type of Doc - If remittance is discovered with a document, enter type of document (Form 941, Form 1040, etc.) or enter information in the Form Number/MFT box from Form 3244.

6. Tax Period - Tax Period of the document or from the Tax Period box from Form 3244.

7. Type of Remit - Check, money order, etc.

8. Amount of Remit - Money amount of the discovered remittance.

9. Received Date - IRS received date stamped on document or date entered in the Transaction/Received Date box from Form 3244.

10. Name - Name of individual taxpayer or business.

11. SSN/EIN - Taxpayer identification number (TIN) of individual taxpayer or business.

12. Discoverer Name - Name of employee that discovered the remit.

13. Discoverer Supervisor - Initials of management official from discovering function to verify cash has been counted/verified, the form is completed with all available information associated with the discovered remittance and the package is ready for release to Receipt and Control.

14. Rec’d Unit Initial - Initials of Receipt and Control Operations employee receiving the discovered remittance from the discovering function.

15. Rec’d Unit Date - Date the Receipt and Control Operations employee received the discovered remittance from the discovering function.

16. Manager’s Reconciliation Initial and Date - The white top copy of Form 4287 labeled at the bottom of the Form as (Redirect to Originator after RC) will be received back from the Receipt and Control Operations after they accept the discovered remittances. It must be reconciled by the responsible manager against the yellow copy of Form 4287 labeled as (Retain by Originator). Reconciliation is needed to ensure the Form 4287 is received back from Receipt and Control with their initials and date verifying they have received the discovered remittances. Reconciliation of Form 4287 must be performed within seven business days after the date the discovered remittance was sent to Receipt and Control.

17. A sequential number beginning with 001 must be assigned to each Form 4287 that is prepared throughout the current January through December calendar year. (i.e., if 50 Forms 4287 have been completed throughout the year they must be numbered 001 thru 050). The number will be placed in the upper left hand corner of Form 4287.