21.4.3. Returned Refunds/Releases

(1) Employees in the Accounts Management (AM) organization respond to taxpayer inquiries, phone calls, process claims and other internal adjustment request related to Returned Refunds/Releases.

(1) The authorities for this IRM include:

• IRM 1.2.1.13, Policy Statements for Customer Account Services Activities

• IRC 6402(a); Treas. Reg. 301.6402–1.

• Murray v. U.S., 300 F.2d 804, 806 (1st Cir. 1962).

(2) In addition to established IRM guidance, consider the Bureau of the Fiscal Service (BFS) regulations when issuing a check in another name. These regulations include, but are not limited to, the following:

• The BFS procedure requires documentation that is consistent with the Assignment of Claims Act, 31 USC 3727. The Act covers the payment aspect of a claim, which is the relevant aspect for purposes of the subject actions; see 31 USC. 3727(a)(2) (“assignment” includes “the authorization to receive payment for any part of the claim”). In general, the Act requires that the assignment be attested to by two witnesses and the person making the assignment shall acknowledge it before an official who may acknowledge a deed, and the official shall certify the assignment.

• Under the BFS procedure the claimant’s financial institution evaluates the documentation.

• The availability of the BFS alternative procedure for a claimant may be taken into account when considering how much risk IRS should undertake.

(1) The Taxpayer Services Commissioner oversees all policy related to this annually published IRM.

(2) The Director of Accounts Management (AM) oversees the instructions to the employees contained in the IRM content.

(3) Accounts Management Policy and Procedures IMF (PPI) Tax Analyst(s) oversees the content in this IRM and acts as a point of contact for all Accounts Management sites.

(4) Managers and leads ensure compliance with the guidance and procedures in this IRM for Returned Refunds/Releases case resolution.

(5) Employees resolve Refund Inquiry requests following procedures in this IRM.

(1) Program Effectiveness: Program Effectiveness is measured and controlled through:

1. Managerial reviews

2. Quality reviews

3. Quarterly PPI reviews

(1) Program Goals are measured and controlled through:

• Quality data and guidelines for measurement are referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support

• Campus Compliance

• Field Assistance

• Tax Exempt/Government Entities

• Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support

• Goals, measures and operating guidelines are listed in the yearly Program Letter

(1) Common acronyms listed throughout this IRM:

(1) Refer to the related resources below (list is not all inclusive):

• IRC 6402, Authority To Make Credits Or Refunds

• Public Law 100-86, Title X, Government Checks, of the Competitive Equality Banking Act of 1987 (known as the Limited Payability provision), 31 USC § 3328, Paying checks and drafts

• Bureau of the Fiscal Service - Treasury Check Information System

• Document 6209 (IRS Processing Codes and Information)

• Integrated Automation Technologies (IAT) Tool Instructions

• Refund Inquiry Unit Addresses

• Treasury Check Information System (TCIS)

• Integrated Automated Technologies (IAT) - Missing Refund (CHKCL) tool

• Integrated Automated Technologies (IAT) - Reissue Refund (CHK64) tool

• IRM 21.4.1, Refund Research

• IRM 21.4.2, Refund Trace and Limited Payability

• IRM 21.4.4, Manual Refunds

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

(1) Sometimes taxpayers return refund checks directly to the RFC instead of sending them to the campus.

(2) If the check has not expired, the Accounting Function receives SF 1098, Schedule of Cancelled Checks, from the RFC. The Accounting Function may forward the list to the Refund Inquiry (RI) Unit at their campus for notification purposes. If received in RI, the list may be kept in the unit files or destroyed as classified waste.

(3) Correspondence received from the taxpayer will be sent with the SF 1098 list. See paragraph 9 below for instructions.

(4) Undelivered checks are identified on the SF 1098 list as "Code 2". Checks returned to RFC by the taxpayer are identified as "Code 3".

(5) Transaction code (TC) 841, blocking series and serial number "99999", on the module, identifies checks returned by the taxpayer.

(6) TC 740, blocking series and serial number "99999", identifies checks returned by the U.S. Postal Service.

(7) When the RFC receives a refund check for cancellation, they send the following to the RI function:

• Correspondence from the taxpayer

• Envelopes from the postal service

(8) The RFC or U. S. Postal Service will annotate on correspondence:

• Check and symbol number

• Taxpayer is deceased (if applicable)

• Taxpayer moved and left no forwarding address

(9) The RI function will:

1. Control case on IDRS.

2. Acknowledge the correspondence, send Letter 4427C, Acknowledgment of Returned Refund Check, if the taxpayer returned the check.

3. Resolve P- or S- freeze condition.

4. Input CC STAUP or TC 470 on balance-due modules if TC 841 or TC 740 has not posted back to the account.

Note: See IRM 21.4.3.5.3, Undeliverable Refund Checks, and IRM 21.4.3.5.5, Resolving Returned Refunds (Unexpired Checks), for further guidance.

(1) A recertified check is any check reissued to the taxpayer to replace an original check. If a check was cancelled, the account will show a credit for the refund, TC 841 or TC 740. A refund may be cancelled for any of the following reasons:

• Undelivered refund - See IRM 21.4.3.5.3, Undeliverable Refund Checks

• Limited Payability - See IRM 21.4.2.4.7, Limited Payability (LP) Rules

• Result of a refund claim (CC CHKCL) - See Exhibit 21.4.2-1, Command Code (CC) "CHKCL" Input

• Refund intercept (CC NOREF) - See IRM 21.4.1.5.10, Refund Intercept Command Code NOREF with Definer "P"

• Refund returned by the taxpayer - See IRM 21.4.3.5.4, Returned Refund Check Procedures, IRM 21.4.3.5.5, Resolving Returned Refunds (Unexpired Checks), and sub-sections, and IRM 21.4.3.5.6, Resolving Returned Expired Refunds Limited Payability, and sub-sections

(2) When the taxpayer returns either the original, recertified, or both checks, use the following procedures:

(1) If the U.S. Postal Service cannot deliver the refund check to the taxpayer's address they will return the check to the Bureau of the Fiscal Service (BFS) Regional Finance Center (RFC).

(2) The RFC cancels the undelivered refund checks weekly and transmits the undeliverable refund checks to Martinsburg Computer Center (MCC) for posting of TC 740 to credit the correct taxpayer's account. If a Treasury Offset Program (TOP) offset was made on the original refund, TOP will generate a TC 899 code 1 to reverse it.

(3) Review the module for conditions that could determine allowable credit interest (e.g., identity theft (IDT), etc.) and take the proper action, including a manual computation of interest if necessary, before releasing the refund.

(4) An S- freeze occurs when:

1. An undelivered refund check less than one year old is returned by the postal service (TC 740 Blocking Series 99999) and the address has not been updated since the refund was issued.

Exception: Undeliverable Economic Impact Payments will not set an S- freeze and will be systemically reversed after the following dates: first and second round after 12/31/2020, third round after 12/31/2021. Instead, the taxpayer may claim the Recovery Rebate Credit on their 2020/2021 tax return as appropriate, if eligible. See IRM 21.6.3.4.2.14, Recovery Rebate Credit, for more information.

Note: Refund checks not cashed within 12 months of issue date are considered expired checks and are identified by a TC 740 Blocking Series 66666. See IRM 21.4.3.5.6, Resolving Returned Expired Refunds Limited Payability.

Note: The IRS will update the taxpayer’s address of record per the procedures in Rev. Proc. 2010-16 which includes clear and concise written notification. Taxpayers may notify the IRS of an address change using various methods (e.g., Form 8822, Change of Address; Form 8822-B, Change of Address or Responsible Party - Business; Form 3911, Taxpayer Statement Regarding Refund; correspondence described in section 5.04(1)(a) of the revenue procedure, etc.). Taxpayers can also request an address change via oral statement, see IRM 21.1.3.20.1, IMF and BMF Oral Statement Address Changes.

Caution: Refunds cannot be systemically issued to a temporary address. If the address provided is a temporary address, a manual refund is required.

2. A return is filed without an address and a "Campus Address" is assigned. For campus address cases, see IRM 21.4.1.4.5, Return Processed but No Address on File.

3. Responses to CP 231, Undelivered Refund Check Returned to Us, and Letter 533C, Refund Check Undelivered or Not Negotiated, received in Refund Inquiry must be assigned using category code "UDRF".

(5) For SCADDRESS transcripts received in Refund Inquiry (RI), take the following actions for case resolution:

1. Research CC IRPTRL for taxpayer address

2. Send Letter 533C, to the CC IRPTRL address(es) requesting the taxpayer furnish their current address

3. Close case

4. Take proper action on Letter 533C replies

5. For transcripts that involve Identity Theft (IDT) or Return Integrity and Verification Operations (RIVO), see IRM 21.2.4.3.18, Return Integrity and Verification Operations (RIVO) and Criminal Investigation (CI), Transcript Issues, and IRM 21.2.4.3.19, Transcripts with Identity Theft (IDT) Involvement

(6) Do NOT input a CC CHK64 under the following conditions (reissue refund as a manual refund):

1. Original refund was a TC 840, and circumstances still exist where the taxpayer requires a manual refund.

2. Original refund was a TC 846 with a Bypass Indicator (Injured Spouse).

3. Deceased taxpayer and no CCC L or W on CC TXMOD or CC RTVUE for applicable period. See IRM 21.6.6.2.21, Decedent Accounts, for more information on decedent account refunds.

4. Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds (MFT 46, Doc Code 88) - Any address correction in response to a CP 231, Undelivered Refund Check, should not be updated on master file.

   Note: See IRM 21.7.7.7.4.5.4, Form 8038-CP Manual Refund Guidelines, for more information about manual refunds.

(7) Any of the following will release an S- freeze.

1. The filing of a subsequent return (TC 150)

2. CC CHK64 to generate a TC 018 on CC ENMOD

   Note: Reissue Refund (CHK64) Tool is available as an IAT tool and is mandatory unless a manual refund must be issued.

3. Systemic module update with TC 013 Business Master File (BMF) or TC 014 Individual Master File (IMF) updating from the Postal Service National Change of Address (NCOA) database.

   Exception: Systemic releases will not occur if a name change has occurred since the return was filed. The NCOA and IRS records must match exactly. See IRM 3.13.5.42, Determining National Change of Address (NCOA) Address Changes.

4. A taxpayer-initiated address change through Internet Refund Fact of Filing (IRFOF) will post as a TC 014 (IMF only) with a source code of 1.

   Note: The address change option in IRFOF is currently disabled.

5. Input of TC 014 on IMF and TC 013 or TC 014 on BMF after posting of the TC 740

Reminder: Refund will not release if the TC 846 and TC 740 are for different amounts.

6. Module balance becomes zero or debit

(8) Customer service representatives (CSRs), tax examiners (TEs) and RI Unit Examiners will input CC CHK64 (TC 018) to change the address.

1. CC TXMOD must precede CC CHK64. (It cannot be input on a dummy module.)

2. If there are multiple S- freezes, CC CHK64 input on any account with an S- freeze will release all S- freezes.

3. Request must be from an authorized party. On a joint return, this would be either spouse (both signatures are required to negotiate the check). When updating our records through oral statement, advise taxpayer to change their address at their local post office.

Note: If the secondary taxpayer on a joint account requests an address change, determine if the change applies to the joint account or only the spouse. If the change applies only to the secondary taxpayer, make no change to the primary taxpayer's address. Advise the requestor the primary taxpayer must contact us or submit a Form 8822, Change of Address. IRM 21.4.2.4 (5), Refund Trace Actions, provides guidance for an acceptable oral statement.

4. CC CHK64 can be input based on an oral statement or written correspondence from the taxpayer received via Correspondence Imaging Inventory (CII).

5. Certain situations will require the CP 564 to be stopped (e.g., if the credit will not refund due to an offset). The CP 564 can be stopped by overlaying the notice indicator on the CC CHK64 screen with an "N". See IRM 25.25.12.9, Limited Direct Deposit Refund Procedures.

(9) Use the chart below to release an S- freeze:

(10) Additional research may be required to determine the type of refund to send to the taxpayer. If there appears to be a need for further research on the account, take the proper action. This may include contacting other IRS functions or more communication with the taxpayer, see Letter 533C, Refund Check Undelivered or Not Negotiated.

(11) If additional research or contact with the taxpayer results in moving the overpayment to a different tax module, follow the guidance in IRM 21.4.3.5.5 (5), Resolving Returned Refunds (Unexpired Checks).

(12) Take the proper action on Computer Paragraph (CP) replies.

(1) If the taxpayer calls or sends in a request on how to return their refund check, the customer service representative (CSR) or tax examiner at the IRS Campus Refund Inquiry (RI) Unit, should first confirm the refund check was issued by the IRS. Refer to IRM 3.8.44-7, Agency Location Codes (ALC), to confirm the ALC is on the list. If the ALC (begins with 2009XXXX) located at the top of the check next to the date is on the listing, advise taxpayer to write "void" in the endorsement area on the back of the check. Advise taxpayer to mail the check with a letter of explanation to the IRS campus RI Unit associated to the taxpayer’s state of residency. See the Refund Inquiry Unit Addresses link for the correct address. Advise the taxpayer not to write on the front of the check. If the ALC is not on the list, advise taxpayer the check was not issued by the IRS, but by another federal agency.

(2) Returned refund checks, whether being sent to a Refund Inquiry team from within the campus, or from outside the campus, must follow the procedures in IRM 3.8.47.4.4, Secure and Process a Returned Refund Check, for documentation and packaging to ensure the security of the check.

(3) When there is potential refund fraud or ID theft involved, Refund Inquiry should take the following actions. (In most instances, these checks will already have been routed by Submission Processing.)

1. Make a copy of the returned Treasury refund check. All Treasury checks must be stamped "Non-Negotiable", or, have the word "void" stamped or written on the front or back of the check.

2. Prepare a Form 3210, Document Transmittal, and send to BFS as normal. See IRM 21.4.3.5.5, Resolving Returned Refunds (Unexpired Checks), for the BFS address.

3. The following table describes the types of checks and the routing procedures:

Row	If	Then
1	Treasury IRS refund checks are returned as undeliverable, and you identify that there is the same address (different names) on multiple checks indicating possible fraud	Fax/eFax check copies and correspondence to Kansas City RIVO at: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Include the date the Treasury check was sent to BFS on the Fax/eFax
2	Treasury check(s) is returned, and ID theft is not indicated, but appears to be fraud related (e.g., Multiple checks with different names have been mailed to the same address. Explanation is something like, "I don't know these people, but these checks were mailed to my house.")	Fax/eFax check copies and correspondence to Kansas City RIVO at: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Include the date the Treasury check was sent to BFS on the Fax/eFax
3	Treasury check(s) is returned, and a note is attached indicating ID theft (e.g., "I got this refund check made payable to me, but I have not even filed my tax return this year. I don't know why I got this check.")	Fax/eFax check copies and correspondence to Kansas City RIVO at: ≡ ≡ ≡ ≡ ≡ ≡ ≡ Include the date the Treasury check was sent to BFS on the Fax/eFax
4	Treasury check(s) is returned undeliverable, OR not belonging to the person named on the check, AND there is evidence of previous RIVO External Leads review. i.e., TC 841 DLN blocking series/serial number 77711, 77712, or 77713 and issuance of a CP 53A, CP 53B or CP 53C notice	Fax/eFax check copies and correspondence to Kansas City RIVO at: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Include the date the Treasury check was sent to BFS on the Fax/eFax
5	A third-party check (non-Treasury checks including RAL/RAC checks) is received outside of Receipt and Control or Campus Support	Process it back to the proper function per IRM 3.8.46.1, Discovered Remittances (for Receipt and Control), or IRM 21.1.7.9.20, Discovered Remittance (for Campus Support).
6	Check is attached to: Letter 4115C, or Letter 4464C, or Letter 4883C	Fax/eFax check copies and correspondence to Kansas City RIVO at: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Include the date the Treasury check was sent to BFS on the Fax/eFax

4. If not already on the account, input TC 971 AC 522 and the proper IDT tracking code. See IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, for codes and more information.

Note: Do not keep an open or monitor control on the case once it has been forwarded to RIVO.

5. If you receive items (including debit cards) from different sources, for example U.S. Postal Service, a law enforcement agency, etc., sort the items and mail to:
   Internal Revenue Service
   Attn: RIVO External Leads Manager
   P.O. Box 219981
   Kansas City, MO 64121
   

Exception: For returned Economic Impact Payment pre-paid debit cards, follow instructions in IRM 3.8.45.19.1 (4), Repayment of Economic Impact Payments (EIP).

(1) Refund checks returned within 12 months of issue date are stamped "NOT NEGOTIABLE", listed on a Form 3210, Document Transmittal, and sent to the Philadelphia RFC daily for cancellation. A copy of the check should be kept with the case. Non Refund Inquiry Unit employees, see (3) below. Refund Inquiry Unit employees, do not include any reference to the IRS in the To portion of the address label. Forward the Form 3210 and documentation via US Postal Service, to:

Bureau of the Fiscal Service
Attn: Mailroom Staff
P.O. Box 51318
Philadelphia, PA 19115

(2) RFC will return credit for returned refund checks via SF 1098 and will post a Transaction Code (TC) 841 to the taxpayer's account in approximately four to six weeks after the check is forwarded to RFC. If there was a TOP TC 898 on the original refund, TOP will generate a TC 899 to reverse it. RFC will return credits for Non-Master File (NMF), Individual Retirement Account File (IRAF) and fee refunds manually on SF 1098.

(3) Take the following action when you receive a Form 3210 and/or a returned refund check.

(4) To research and resolve returned refund checks that include an explanation from the taxpayer, refer to the chart below. Follow the taxpayer's instructions whenever possible.

(5) If a taxpayer returns a refund check requesting that it be applied to another tax module and:

• The refund was not the result of a misapplied payment

• The refund was not due to IRS error

• Credit elect was not indicated on the return

• Liabilities were not claimed on Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors, for any Form 94x series tax return

• Payment was not claimed on the total payment/deposit line of the tax form for the quarter in which the returned refund was to be applied

1. For purposes of moving the credit to a different tax module, the principal component of the refund is debited with TC 820 and credited to the receiving module with TC 700. The transaction date of the TC 820 (debit) is the 23C date of the TC 841 (TC 740 in the case of an undeliverable refund check): the transaction date of the TC 700 (credit) is the date the returned refund check was received.

2. Because the posting of TC 841 will cause any systemically generated interest (TC 776) allowed on the refund to be removed with TC 777, it must be manually re-posted with TC 770. Input TC 770 with a CR-INT-TO-DT that is identical to the date interest was originally computed to on the returned refund. See IRM 20.2.4.8, Refunds, for more information.

   Caution: The CR-INT-TO-DT is the ending interest computation date for the interest that was included in the refund check. It is not the 23C posting date of a returned TC 846, nor the 23C posting date of the TC 776 that accompanies TC 846.

3. When TC 770 posts, it is debited with TC 850 and credited to the receiving module with TC 700. The transaction date of the TC 850 (debit) is the 23C date of the TC 770; the transaction date of the TC 700 (credit) is the date the returned refund check was received.

4. If a taxpayer originally requested that they receive a refund, and the refund is returned with a request that it be applied to the estimated tax account of the immediately succeeding tax year, the amount credited to the estimated tax account (on the date the returned refund was received) shall include the refund principal plus any overpayment interest that was originally allowed on the refund (provided the interest amount was not allowed in error). Do not characterize the transfer as a credit elect (TC 830 and TC 710) but use the transaction codes referenced above.

5. Use CC ADD24/CC ADC24 (refer to IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48, for more information) to generate the transfers described above. Input Bypass Indicator (BPI) "1" or TC 570, as appropriate, to override unpostable condition 305/198. See IRM 21.5.8.4.5, TC 570 and Bypass Indicator.

   Example: A Form 941 for the 4th quarter of 2018 is timely filed on 01/31/2019, reporting an overpayment of $950.00, which refunded with interest of $16.80. The module shows a TC 776 posted 06/17/2019 for $16.80 and a TC 846 posted 06/17/2019 for $966.80 The interest was computed on the overpayment of $950.00 from 01/31/2019 to 06/08/2019. IRS received the returned refund on 10/25/2019 with a request to apply it to pay a balance due on the Form 941 module for the second quarter of 2019 (201906). The returned refund posted to the module with a TC 841 for $966.80 and TC 777 for $16.80, both dated 06/17/2019.
   
   To transfer the principal portion of the returned refund to the 201906 balance due module, a credit transfer is entered with a TC 820 for $950.00, dated 06/17/2019, and a TC 700 for $950.00, dated 10/25/2019. An adjustment to re-allow the interest on the returned refund will be input with a TC 770 for $16.80 and a CR-INT-TO-DT of 06/08/2019. If the 23C posting date of this adjustment is 12/02/2019, then the transfer of the interest portion to the 201906 module is input with TC 850 for 16.80, dated 12/02/2019 (23C date), and TC 700 for 16.80, dated 10/25/2019 (the date IRS received the returned refund).

(6) If no explanation or other information is provided by the taxpayer, and you are unable to determine why the refund check was returned, correspond with a Letter 407C, Refund Returned by Taxpayer; No Reason Indicated, or Letter 18C, Decedent Refund (Form 1310 Requested), if a Form 1310 is needed. Suspend the case and allow 45 days for a response (70 days for overseas taxpayers). If no response is received, follow paragraph (11) below.

(7) When a refund check is reissued to the taxpayer or designated payee, do not allow interest if:

• Taxpayer furnished incorrect information

• Taxpayer moved before refund received

• Refund returned to be applied to any outstanding balance

• Taxpayer error

(8) Allow interest under the following conditions:

• IRS error caused the refund to go to incorrect address

• TC 841 posts after an adjustment, and P- freeze is on account

• IRS caused the incorrect refund amount or directed the refund to the wrong payee

Note: See IRM 20.2.4.8.5.2, Returned and Intercepted Refund Checks, for additional information regarding allowable interest calculations.

(9) Use the following guides when inputting a TC 290 to release P- freeze as a refund to the taxpayer. Refer to IRM 21.5.6, Freeze Codes.

(10) Depending on the age of the credit, transfer the payment or credit to the Unidentified Remittance or Excess Collections accounts if:

1. The credit cannot be released through research or correspondence with the taxpayer

2. The taxpayer has not responded to our correspondence (original or follow-up)

(11) If unable to release the credit, transfer the credit as follows:

1. If the credit is less than one year old, apply to the Unidentified Remittance File (URF– 4620 Account) using Form 2424, Account Adjustment Voucher.

2. If the credit is more than one year old, apply to the Excess Collection File (XSF– 6800 Account) using Form 8758, Excess Collections File Addition. Refer to IRM 3.17.220.2, Excess Collections File, for specific information about the Excess Collections Account 6800 and IRM 21.5.8.4 (14), IDRS Guidelines for Credit Transfers, for procedures on moving money into Excess Collection. For assistance in matters related to XSF and URF, see Excess Collections/Unidentified Remittance Files contacts list, located on Servicewide Electronic Research Program (SERP) under the Who/Where tab.

   Exception: Telephone contact is not required if a previous attempt was made to obtain new/correct address information (i.e., 533C or another letter).

   Note: If the returned check is for the first, second, or third round of Economic Impact Payments, see IRM 21.6.3.4.2.13 (2), Economic Impact Payments, for more information about how to correct these accounts.

3. Monitor your case for 45 days using activity code "F8758MMDD" where the "MMDD" represents the last day of the suspense period. Close the control base when the credit has been moved from the account by Excess Collections. If no action after 45 days, follow up with Excess Collections via phone, email or fax.

(1) Under Title X, Government Checks, of the Competitive Equality Banking Act of 1987 (known as Limited Payability provision), checks issued October 1, 1989 or later expire the last business day of the 12th month after issuance. The credit for an expired refund will post as a TC 740, blocking series/serial number "66666", approximately three weeks into the 14th month. Upon completion of the case, destroy the original expired refund check as classified waste. Do not send an original check to files.

(2) If the taxpayer contacts IRS and either returns or wants to return a refund check that is over 1 year old (known as a "stale dated" check) use the following chart to determine your response:

(3) For refunds meeting or related to TRNS46 transcripts (STAT-08 and AMX-08) with decedent refunds, refer to IRM 21.2.4.3.20, Processing TRNS46 Cases, to address refund.

(1) The two Category Codes that pertain to returned refund checks (excluding undeliverables) are 3913 and 841P, but these may change depending on actions taken on the account.

(2) Unexpired refund checks are input on the automated Returned Refund program in AMS, which opens a control base on IDRS in 2-3 days in Category Code 3913. When the check is sent to the Bureau of the Fiscal Service (BFS) RFC for cancellation, a TC 841 will post in about 4 - 6 weeks at which time the Category Code changes to 841P.

(3) Returned refunds in Category "3913" age in 45 days from the received date. When the category updates to "841P", action must be taken in 14 days to avoid becoming overaged. Use the following chart for required follow-up action time frames on these categories: