25.25.8. Revenue Protection External Lead Procedures

IF

AND

THEN

1. Lead submitted includes only IMF accounts

There is an established history of submitting a lead (i.e., listed on the Financial Contact Information spreadsheet located in the Bank Working Directory file)

• Create the lead number by using the email receive date and the sequence number (xx) which indicates the order in which the lead was received that day see row 2 and 3 below for BMF leads, and those that include both IMF and BMF accounts)

  Example: Lead receive date is February 2, 2023, and it was the third one received that day, the lead number will be 020223 03

• E-mail the bank POC the Acknowledgment Verbiage script and the assigned lead number created.

  Exception: If the lead source is from CI or SBSE, do not send the script. The TE assigned the case will follow the guidance inIRM 25.25.8.3 Processing External Lead, paragraph 7, row 9.

• If the e-mail/attachments contain unsecured /unencrypted Personally Identifiable Information (PII), send the Email/Attachment Not Secured or Encrypted Script 

• Create the lead folder using the following naming convention: lead number, financial institution name, first initial and last name of the Point of Contact (POC) that submitted the lead. If the lead source is from CI or SBSE Collections, add an abbreviated job title for the point of contact and their last name (i.e., Policy Analyst Joe Hog - 040222 01 West Bank PA HOG)

• Save to the lead folder as a PDF, the original email, and the acknowledgement email. Also include all attachments including the original Lead Submission spreadsheet.

  Reminder: Do not modify or edit any of the attachments received. Making a copy of a document is permissible if the intent is to make edits.

• Lead folders will be placed in the appropriate site’s folder for TE assignment

• Import all leads, except Lead Only - No Funds to the Lead Management System (LMS) database

• Add to LMS the following: Institution’s routing transit number, Lead Type, Submission Method, and Lead Received Date

1a. Lead submitted to the External Lead mailbox or forwarded by RIVPM P&A staff

No record found on the Financial Contact Information spreadsheet located on the Bank Working Directory.

• Contact RIVO POCs Super Admin users to add the bank to LMS so the spreadsheet can be imported into LMS

• Send the bank POC, the Lead Submission spreadsheet if the template was not used and Publication 5033, IRS EXTERNAL LEADS PROGRAM: FACT SHEET ON SUBMITTING LEADS

• Follow guidance in row 1, Then column, to complete the mailbox procedures for IMF accounts and row 2 for BMF.

2. Lead includes BMF account(s) only

• Add the letter B to the assigned Lead number

  Example: 030223 01B

• E-mail the bank POC the BMF Acknowledgment Lead script and the assigned lead number created, unless the lead source is from CI or SBSE employees

• If the e-mail/attachments contain unsecured /unencrypted Personally Identifiable Information (PII), send the Email/Attachment Not Secured or Encrypted Script 

• Create the lead folder using the following naming convention: lead number, financial institution name, first initial and last name of the Point of Contact (POC) that submitted the lead. If the lead source is from CI or SBSE Collections, add an abbreviated job title for the point of contact and their last name (i.e., Policy Analyst Joe Hog - 041722 01B West Bank PA HOG)

• Save to the lead folder as a PDF, the original email, and the acknowledgement email. Also include all attachments including the original Lead Submission spreadsheet.

  Reminder: Do not modify or edit any of the attachments received. Making a copy of a document is permissible if the intent is to make edits.

• Lead folders will be placed in the appropriate site’s folder for TE assignment

• Import all leads, except Lead Only - No Funds to the Lead Management System (LMS) database

• Add to LMS the following: Institution’s routing transit number, Lead Type, Submission Method, and Lead Received Date

3. Lead include IMF and BMF account leads

• Create a separate spreadsheet for IMF and BMF accounts.

• Create a lead number for each payee type as described in row 1 and 2 above.

• Send the bank POC the IMF-BMF Acknowledgement Lead script

• Follow guidance to complete the mailbox procedures as outlined in row one or two based on payee type.

4. Lead only, no funds

See IRM 25.25.8.2.1, Lead Only (No Funds Available) for guidance to address these leads.

5. Leads requiring priority handling:

• Pending Lawsuits

• Reclamation Claims

• Indemnification Requests

• ACH reversals

• Follow local procedures for flagging the email.

  Note: Those flagged for RIVPM Headquarters, forward a copy of the email to all the RIVPM Analysts assigned to the External Lead program.

• If no designated flag was created for the inquiry, then the TE needs to notify their Lead or manager for directions

6. Follow up e-mails

• Review the email to determine if it needs to be escalated (Ex: Pending lawsuits, requests to modify our indemnification letter or sign a hold harmless letter, policy questions, etc.), assigned to a site/employee/manager to follow up.

• Escalations, flag the email in accordance with local procedures and then forward it to RIVO P&A and RIVPM P&A point of contacts to address.

• Other inquiries, not requiring escalation:
  Lead number established - Forward the email to the assigned employee and their manager to follow up.
  No Lead number established - Follow local procedures for creating a lead if it is applicable.

IDRS CC TXMODA will display a TC 766 with the applicable Credit Reference Number (CRN) of the fuel type paid. See Form 4136 to see the specific CRN claimed.

IDRS CC TXMODA will display a TC 766 with the applicable Credit Reference Number (CRN) 299 or 271.

• CRN 299 - Qualified sick and family wages for wages paid April 1, 2020, through March 31, 2021

• CRN 271 -Qualified Sick and Family Leave for wages paid April 1, 2021, through September 30, 2021

IDRS CC TRDBV and the Employee User Portal MeF files can be used to view the Form 4136 filed.

IDRS CC TRDBV and the Employee User Portal MeF files can be used to view the Form 7202 filed.

See IRM 4.19.15.16, Fuel Tax Credit Claimed on Form 4136 for additional information.

See IRM 4.19.14.17.4., Sick and Family Leave Credit (No current year business reported) for additional information.

1
the return is two years prior or older to the current processing year

The return is questionable

• Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
  148XX00002".

• Prepare indemnification letter to request funds from the financial institution.

• Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) REQFUNDS IDT".

• Import LMS spreadsheet with results to the "Update" folder.

• Notify POC that the indemnification process is complete.

2
the return is current processing year or one year prior

the return is questionable, AND no funds were received with the lead

• Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
  148XX00002"

• Prepare indemnification letter to request funds from the financial institution and save in the associated lead folder

Note: When necessary, update Lead Template with funds to be returned/not returned for all associated accounts and save in the associated lead folder.

• Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) REQFUNDS"

• Import LMS spreadsheet with results to the "Update" folder

• Notify POC that the indemnification process is complete

3
the return is questionable

funds were received with the lead

See IRM 25.25.8.4, Processing External Lead Deposits.

4
the return is valid

no funds were received with the lead

• Update/Input IDRS control to "Cxx,VALID150,C,MISC
  148XX00007"

• Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) VALID150"

• Input TC 972 AC 134 to reverse RIVO indicator

  Reminder: If no TC 971 AC 134 is on the account, do not add it. Input a history on CC TXMOD as "ValidNo134".

• Import LMS spreadsheet with results to the "Update" folder.

• Notify POC that the indemnification process is complete

5
The return is valid

The refund check was stolen

• Update/Input IDRS control to Cxx,REQFUNDS,A,MISC
  148XX00002.

• Prepare an indemnification letter to request funds be returned.

• Add a comment to LMS stating Valid Return/Recovering Stolen Check. Also Enter as a Note in AMS and EFDS, if the return is in EFDS, the same comment.

6
the return is valid

funds were received with the lead

See IRM 25.25.8.4, Processing External Lead Deposits.

7
the return is good or bad

no funds are available to be returned (the spreadsheet from the bank shows $0 available)

• Update/close the control to "NOFNDSAVLB,C"

• Add a note to EFDS , Lead number and "no funds available"

• Update LMS

8
The return is good or bad

there is "TPP RECOVERY" in the MISC field

• Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
  148XX00002"

• Prepare indemnification letter to request funds from the financial institution and save in the associated lead folder

Note: When necessary, update Lead Template with funds to be returned/not returned for all associated accounts and save in the associated lead folder.

• Update EFDS notes with" BKL lead number (lead number =MMDDYY XX) REQFUNDS"

• Import LMS spreadsheet with results to the "Update" folder

• Notify POC that the indemnification process is complete

9
Lead source is from CI or SBSE Collection

• Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
  148XX00002".

• Prepare an indemnification letter to request the refund be returned.

• Send the bank POC the CI & SBSE Refund Recovery Assistance feedback script and the indemnification letter. Both must be sent the day the lead is received or the next business day if received after hours, a weekend, or a holiday. Save all communications to the associated lead folder.

  Reminder: Copy the lead source on all e-mail communications.

Note: If the lead source does not provide a bank POC, check the financial Institution POC Listing for a good contact. Send the letter and script to that bank POC e-mail address.
If no reliable bank POC is found, notify the lead source a bank POC e-mail address needs to be provided to issue the request.

• Update EFDS notes with" BKL lead number (lead number =MMDDYY XX ) REQFUNDS IDT".

• Import LMS spreadsheet with results to the "Update" folder.

10
Current or prior year Form 1040 was filed claiming the Fuel Tax Credit (FTC) or Credits for Sick Leave for Certain Self-Employed Individuals.

The accounts contain either of the following markers:

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• Update/Input IDRS control to Cxx,REQFUNDS,A,MISC
  148XX00002

• Prepare an indemnification letter to request funds

• If funds are recovered, post to the account

• Input a TC 570 to hold the refund

• Suspense the account until further notice.

11
Current or prior year Form 1040 was filed claiming the Fuel Tax Credit (FTC) or Credits for Sick Leave for Certain Self-Employed Individuals.

The account does not contain one of the markers outlined above

• Update/Input IDRS control to Cxx,REQFUNDS,A,MISC
  148XX00002

• Prepare an indemnification letter to request funds

• If funds are recovered, post to the account

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

12
Current or prior year Form 1040 was filed claiming the Fuel Tax Credit (FTC)

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  Example: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• Update/Input IDRS control to "Cxx,REQFUNDS,A,MISC
  148XX00002".

• Prepare an indemnification letter to request funds be returned.

• Once funds are recovered, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ I

If

Then

1. No response

• Issue 45 day follow up letter

• Save the follow-up letter as a PDF file in the lead folder

• Notate in LMS comments, date the 45 day follow up letter was issued

2. Bank responds, payment was returned

• If not provided in the response, contact the bank to secure the date payment was returned, tracking information if sent overnight/express, and the dollar amount returned.

• Research IDRS CC TXMODA or IMFOLT to confirm if a payment from the deposit posted to the account or if there are multiple accounts associated with the lead, research a sample of them.

• If the payment cannot be located via IDRS, employees with access to the Remittance Transaction Research (RTR) database must research it before declaring the closing as no funds returned.

• If payment cannot be located, consult first with the team Lead or Manager before taking case actions to close the lead as no funds returned

3. No response from bank nor funds received 15 days after the 45 day follow up letter is issued

• Follow guidance in 2 above (bullet number 2 and 3) to try and locate the payment.

• If payment cannot be found, close the lead as no funds returned and close all controls.

1
the funds received are between $1.01 and $4.99

the return is considered good

• Input CC ELP45

  Caution: You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

Note: Balance the ELP45/ commingled amounts to reflect total of deposit.

Reminder: The amount of the transfer may not exceed the TC 846 amount.

• Update/open control to "Cxx,BKLDCKRECD,A,MISC
  148XX00007"

• Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

• Input TC 972 AC 134 to reverse RIVO indicator.

Reminder: If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134"

• Change disposition in STARS to "DL"

• Update LMS spreadsheet with results

• Input a TC 290 .00 with a posting delay of 2 to release the refund to the TP

• Close all RIVO controls

• Notify POC that process is complete

2
the funds received are $1.00 or less

the return is considered good

• Input CC ELP45

  Caution: You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

Note: Balance ELP45/commingled amounts to reflect total of deposit.

Reminder: The amount of the transfer may not exceed the TC 846 amount.

• Update/open control to "Cxx,BKLDCKRECD,A,MISC
  148XX00007"

• Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

• Input TC 972 AC 134 to reverse RIVO indicator

Reminder: If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134".

• Change disposition in STARS to "DL"

• Input a TC 290 .00 with a posting delay of 2 and a priority code of 5 to post accruals

• Close all RIVO controls

• Update LMS spreadsheet with results

• Notify POC that process is complete

3
the funds received are $4.99 or less

the return is considered bad

• Update/close the control to "CXX,BKLCOMNGLD,C,MISC
  148XX00004"

• Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

Note: If the tax year is in retention it must first be brought back to Master File using CC IMFOLB.

Reminder: This will be updated en masse after the entire lead/deposit is completed.

• Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) BKLCOMNGLD ". If two years prior or older add "suspected IDT" to the note

• If not already dispositioned in EFDS, disposition current processing year returns as appropriate

• Update LMS spreadsheet with results

• Create the Commingled Memo and save to the associated lead folder

  Reminder: For large deposits worked by more than one TE, create only one memo for the entire deposit.

• Send e-mail to POC with notification that process is complete

4 the account is dormant, in retention (refunds paid in calendar years prior to the current and prior calendar year) or the return is two years or older to the current processing year

• Update/close the control to "CXX,BKLCOMNGLD,C,MISC
  148XX00004"

• Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

Note: If the tax year is in retention it must first be brought back to Master File using CC IMFOLB.

Reminder: This will be updated en masse after the entire lead/deposit is completed.

• Update EFDS notes with" BKL deposit number lead number(lead number =MMDDYY XX) BKLCOMNGLD ". If two years prior or older add "suspected IDT" to the note

• If not already dispositioned in EFDS, disposition current processing year returns as appropriate

• Update LMS spreadsheet with results

• Create the Commingled Memo and save to the associated lead folder

  Reminder: For large deposits worked by more than one TE, create only one memo for the entire deposit.

• Send e-mail to POC with notification that process is complete

5
the return is considered bad

Account does not contain TC 841 with document code 48 in the DLN or TC 700 with document code 58 in the DLN

• Input CC ELP45

  Caution: You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

Note: Balance ELP45/commingled amounts to reflect total of deposit.

Reminder: The amount of the transfer may not exceed the TC 846 amount.

• Update/open control to "Cxx,BKLDCKRECD,A,MISC
  148XX00004"

• Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

• Update LMS spreadsheet with results

• Notify POC that process is complete

6
the return is considered bad

Accounts contain TC 841 with document code 48 in the DLN or TC 700 with document code 58 in the DLN present on the account or
refunds are unidentified, excess funds or commingled accounts

• Update/close the control to "Cxx,BKLCOMNGLD,C,MISC
  148XX00004"

• Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) BKL COMNGLD"

• Input TC 971 AC 134 with MISC field "BKLD COMINGLED "

Reminder: This will be updated en masse after the entire lead/deposit is completed.

• Update LMS spreadsheet with results

• Create the Commingled Memo and save to the associated lead folder

• Send e-mail to POC with notification that process is complete

7
the return is valid

• Input CC ELP45

  Caution: You MUST CMODE to the deposit location to use this CC. This is based on the credit gateway information.

Note: Balance ELP45/commingled amounts to reflect total of deposit.

Reminder: The amount of the transfer may not exceed the TC 846 amount.

• Update/open control to "Cxx,BKLDCKRECD,A,MISC
  148XX00007"

• Update EFDS notes with" BKL deposit # lead # (lead# =MMDDYY XX) ELP45 input"

• Input TC 972 AC 134 to reverse RIVO indicator

Reminder: If a TC 971 AC 134 is not already on the account, do not input a new TC 971 AC 134. Input a history on CC TXMOD as "ValidNo134".

• Change disposition in STARS to "DL"

• Update LMS spreadsheet with results

• Notify POC that process is complete

8
cannot find a return for the TIN provided by the financial institution

Cannot allocate the money received

• Place the TIN provided by the financial institution in the LMS TIN field

• Open your control on the TIN provided by the financial institution for the most recent tax period to "Cxx,BKLCOMNGLD,C,MISC
  148XX00004,"

• Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

Reminder: This will be updated en masse after the entire lead/deposit is completed.

• Update LMS spreadsheet with results

• Create the Commingled Memo and save to the associated lead folder

• Notify POC that the process is complete

9
the TIN is valid, but cannot find the tax period

Cannot allocate the money received

• Open your control on the most recent tax year to "Cxx,BKLCOMNGLD,C,MISC
  148XX00004,"

• Input TC 971 AC 134 with MISC field "BKLD COMINGLED"

Reminder: This will be updated en masse after the entire lead/deposit is completed.

• Update LMS spreadsheet with results

• Create the Commingled Memo and save to the associated lead folder

• Send e-mail to POC with notification that process is complete

10
the return is considered good/bad

the response from the financial institution is no funds are available for return

• Update/close the control to "NOFNDSAVLB,C"

• Add a note to EFDS BKL Deposit number, Lead number and "no funds available"

• Update LMS

11
the return is considered bad

after 60 days with no response from the bank

• See the Table in IRM 25.25.8.6(1), Monitoring External Leads before taking the actions in the bullets below

• Update/close the control to "NOFNDSRTND,C"

• Add a note to EFDS BKL Deposit number , Lead number and "no funds returned"

• Update LMS

12
the return is considered good/bad

the TIN is an Internal Revenue Service Number (IRSN), see IRM 3.21.263.5.5, Internal Revenue Service Number (IRSN), for more IRSN information and the module contains a TC 848 or TC 849

• Update/close the control to "Cxx,BKLCOMNGLD,C,MISC
  148XX00004"

Reminder: DO NOT post anything to the IRSN, open the control and take all actions on the SSN’

• Update EFDS notes with" BKL deposit number lead number (lead number =MMDDYY XX) BKL COMNGLD"

• Input TC 971 AC 134 with MISC field "BKLD COMINGLED "

Reminder: This will be updated en masse after the entire lead/deposit is completed.

• Update LMS spreadsheet with results

• Create the Commingled Memo and save to the associated lead folder

• Send e-mail to POC with notification that process is complete

13
BMF Deposit Received

• Prepare Form 3245 voucher for the amount returned for each account separately

• Save the voucher in the lead folder as the last four digits of EIN, Name Control and tax year. Also include the Trace ID (TID) - see BMF External Lead Guide

• Update the Deposit Information page in LMS

• Update IDRS control base to:
  Bad Returns - BKL3245BMF 1481500004
  Valid Returns - BKL3245BMF 1481500007
  Commingled Funds - BMFCOMNGLD, use the same control number as above if Bad or Valid

  Note: See IMF conditions in this table to determine if the BMF funds recovered must be commingled.

  Exception: If the BMF Lead involves a dormant return or one that is two years or older as in row 4 above, these returns must go to the RIVO P&A staff for review and determination.

• Input TC 570 on IDRS and History item DONOTRFUND (Only if Bad)

• Close all controls assigned to RIVO once the TC 720 post to the account.

• Upon the completion of the deposit or no funds to be returned, send an e-mail to theEntity Fabrication mailbox, with a copy to RIVO P&A point of contact (see SERP portal, BMF External Lead Guide for POC name).

• Include in the subject line, External Lead BMF Referral Lead Closed.

• Include in the e-mail body, the Lead number, EIN, MFT, tax year, and an explanation that the TC 720 has posted. Also advise the lead was closed and any other closing actions the

  Note: If the funds received was for a valid return, the TE will release it by inputting a TC 290 .00, and then notify Entity Fabrication the funds were released. Include in the e-mail body all of the items stated in the bullet above

  .

14
Deposit recovered is from an EIP 1, 2 or 3 and regardless of the eligibility determination(i.e., IDT, Non-IDT, Decedent)

• Input CC ELP45 to post the funds

• Close all controls

  Caution: Once the payment posts to the account (i.e. TC 720, 841)DO Not take any additional actions to adjust the account, including releasing the credit. Programming has been implemented to reconcile the posted credit. The taxpayer, if eligible will need to claim the Recovery Rebate Credit on their 2020 tax return to recover the funds.

1
control number is 148XX00001

is 10 calendar days or older

• Review the account for actions not taken

• Update and/or /close the control base

2
control number is 148XX00002

is 60 calendar days or older

• Review account to determine if TC 720 is present

If not present:

• Close the control base in status "C" with activity "NOFNDSRTND"

If present:

• Determine if return is good, bad or Identity Theft (IDT)

If good:

• Release refund

• Update disposition to "DL" to remove from STARS. Enter a reason in the return's STARS or EFDS notes when requesting its deletion from STARS

If bad and return is current processing year:

• Push to STARS.

• Update category and disposition per IRM 25.25.13-4, STARS Category Definitions and IRM 25.25.13-3, STARS Disposition Definitions

If bad and prior processing year:

• Complete Mass Push Template. IRM 25.25.13.5, Manual Referral, provide the instructions for completing the spreadsheet.

Reminder: If already in STARS, the National POC will update the STARS Disposition to the appropriate category and disposition.

If IDT and the return is current processing year:

• Push to STARS

Reminder: If completed en masse, update to "CAT 1". If completed individually, update to "CAT 7 MR". If multiple TC 846 or the posting of the TC 720 occurs after the account adjustment, refer to IRM 25.25.5-1, Triage Procedures, if the account requires adjustment.

If IDT and the return is prior processing year:

• Complete Mass Push Template using "CAT 1"

• Close the control base

3
control number is 148XX00003

is 60 calendar days or older

Follow IRM 25.25.8.11, Centralized Check Process (CCP)

4
control number is 148XX00004

there is a credit balance and TC 720 is present

If current processing year:

• Push to STARS

• Update category and disposition per IRM 25.25.13-4, STARS Category Definitions and IRM 25.25.13-3, STARS Disposition Definitions

Note: Manually refer to the appropriate workstream using the Manual Referral Spreadsheet if the return does not meet the auto-referral categories.

If prior processing year:

• Complete Mass Push Template and Manual Referral Template. IRM 25.25.13.5 , Manual Referral, provide the instructions for completing the spreadsheet

Reminder: If already in STARS, the National POC will update the STARS Disposition to the appropriate category and disposition.

If IDT and the return is current processing year:

• Push to STARS

Reminder: If completed en masse, update to "CAT 1". If completed individually, refer to IRM 25.25.5-1, Triage Procedures

If IDT and the return is prior processing year:

• Complete Mass Push Template using "CAT 1"

• Close the control as "Cxx,720POSTED,C,MISC"

5
control number is 148XX00004

a TC 720 is not present, and it is 10 calendar days or more from the date the CC ELP45 was input

• Research the account to determine why TC 720 not posted

• Take appropriate actions to resolve

• Update/close the control as applicable

6
control number is 148XX00005

there is a TC 841 present for 10 days or more

• Determine if return is good, bad or IDT

If good:

• Release refund

• Update disposition to "DL" to remove from STARS

• Enter a reason in the return's STARS or EFDS Notes when requesting its deletion from STARS

If bad and return is current processing year:

• Push to STARS

• Update category and disposition per IRM 25.25.13-4, STARS Category Definitions and IRM 25.25.13-3, STARS Disposition Definitions

If bad and prior processing year:

• Complete Mass Push Template and Manual Referral Template. IRM 25.25.13.5, Manual Referral, provide the instructions for completing the spreadsheet

Reminder: If already in STARS , the National POC will update the STARS Disposition to the appropriate category and disposition.

If IDT and the return is current processing year:

• Push to STARS

Reminder: If completed en masse, update to "CAT 1. "If completed individually, refer to IRM 25.25.5-1, Triage Procedures

If IDT and the return is prior processing year:

• Complete Mass Push Template using "CAT 1"

• Close the control base as "841POSTED"

7
control number is 148XX00005

there is no credit balance and is 60 calendar days or older

Close the control base as "Cxx,RFNDNOTHLD,C,MISC"

8
control number is 148XX00007

there is a credit balance and TC 720 is present

• Re-file the return and release the refund

• Update disposition to "DL" to remove from STARS

• Enter in the return's STARS or EFDS notes when requesting its deletion from STARS

Exception: Do Not Release refunds held by another function’s freeze code. When this occurs reverse RIVO marker by inputting TC 972 AC 134.

• Close the control base

9
control number is 148XX00007

there is a credit balance and TC 720 is not present and is 10 calendar days or older from the CC ELP45 date

• Research the account to determine why TC 720 has not posted

• Take appropriate actions to resolve

• Update/close the control as applicable

10
control number is 148XX00009

is 10 calendar days or older

• Determine if return is in STARS

If in STARS:

• Update disposition to "CC" or "CL"

• Close the monitoring control

If not in STARS:

• Research to determine why the return is not in STARS

• Update/close the control base

11
control number is 148XX00011

the TC 722 is present

Follow IRM 25.25.8.4.1, box 2 after TC 722 posts, Reversal/Return of Recovered Funds

12
control number is 148XX00011

the TC722/TC820 is not present and is 60 calendar days or older from preparation date of the accounting form

• Research the account to determine why TC 722 or TC 820 is not posted

• Take appropriate actions to resolve

• Update/close the control as applicable

13
control number is 148XX00013

the TC 720 is posted

• Disposition the return to Ace Adjustments (PS 30)

• Input an EFDS return note of "RIVO EL IDT BKLD"

• Close all RIVO controls

14
control number is 148XX00013

the TC 720 is not posted, and it is 10 calendar days or older from the CC ELP45 date

• Research the account to determine why TC 720 has not posted

• Take appropriate actions to resolve

• Update/close the control as applicable

15
control number is 148XX00014

the TC 841 is posted

• Disposition the return to Ace/ Adjustments (PS 30)

• Input an EFDS return note of "RIVO EL IDT BKLD"

• Close all RIVO controls

16
control number is 148XX00014

the TC 841 is not posted, and it is 60 calendar days or older from the F stop request date

• Research the account to determine why TC 841 has not posted

• Take appropriate actions to resolve

• Update/close the control as applicable

17
control number is 148XX00017

the TC 841 is posted

• Reissue check to the good taxpayer

• If account is in STARS, remove from STARS, by updating disposition to "DL"

• Enter a reason in the return's STARS or EFDS Notes when requesting its deletion from STARS

• Close all RIVO controls

18
control number is 148XX00017

the TC 841 is not posted, and it is 60 calendar days or older from the F stop date requested

• Research the account to determine why TC 841 has not posted

• Take appropriate actions to resolve

• Update/close the control as applicable

1
The account contains an open control to RIVO.

The control base activity field is one of the following:

• "BKLD"

• "REQFUNDS"

AND the control base assignment number is one of the following:

• 148XX00001

• 148XX00002

• Update the Accounts Management System (AMS) notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

• Advise the caller that the return and refund are under review, and it may take up to 90 days from the date of the control base to complete the review and either issue the refund or send a letter regarding the review.

• If the account shows no action taken in the last 90 days, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - RICS RIVO - External Lead. Advise the taxpayer to allow 60 days for a response.

2
The account contains an open control to RIVO.

The control base activity field is one of the following:

• "BKLDCKRECD"

• "BKLDACHREV"

AND the control base assignment number is one of the following:

• 148XX00004

• 148XX00005

• Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

• Advise the caller that the return and refund are under review, and it may take up to 10 weeks from the date of the call to complete the review and either issue the refund or send a letter regarding the review.

• If the account shows no action in the last 10 weeks, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead". Advise the taxpayer to allow 60 days for a response.

3
The account contains an open control to RIVO.

The control base activity field is one of the following:

• "BKLDCKRECD"

• "BKLDACHREV"

AND the module shows control base assignment number is one of the following:

• 148XX00004

• 148XX00005

AND the module shows a posted TC 720 or TC 841

• Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

• Advise the caller that the return and refund are under review, and it may take up to 10 weeks from the date of the call to complete the review and either issue the refund or send a letter regarding the review.

• If the account shows no action taken in the last 10 weeks, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - RICS RIVO - External Lead. Advise the taxpayer to allow 60 days for a response.

4
The account contains an open control to RIVO.

The control base activity field contains the following:

• "VALID150"

AND the control base assignment number is the following:

• 148XX00007

• Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

• If the TC 720/ TC 841 is not posted, advise the caller that the review of the return and refund is complete and to allow 10 weeks for the refund issue.

• If the TC 720/ TC 841 is posted, advise the caller that the review of the return and refund is completed and to allow 6 weeks from the TC 720 /TC 841 cycle date for the refund to be issued.

• If more than 10 weeks passed and the refund has not been issued since the initial call, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead". Advise the taxpayer to allow 60 days for a response.

5
The account contains a closed RIVO control base.

The control base activity field is "BKLCOMNGLD", and the control base assignment number is 148XX00004 or 148XX00007.

• Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

• Advise the caller that the return and refund are under review, and it may take up to 6 weeks from the date of the call to receive a letter regarding the review.

• Prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead". Advise the taxpayer to allow 60 days for a response.

6
The taxpayer states their financial institution advised them their refund was returned to the IRS, provides a lead number and/or mentions the External Lead department.

The control base activity field is "NOFNDSAVLB" or "NOFNDSRTND" and the control base assignment number is 148XX00004.

• IRS never received any funds from the financial institution. Advise the caller to contact their financial institution regarding the refund.

If the taxpayer states, they have already spoken to the bank and the bank referred the taxpayer back to IRS then:

• Submit a Form e-4442 to "RICS RIVO EX LDS". Advise the taxpayer to allow 60 days for a response.

7
The account contains a closed RIVO control base.

The closed control base activity field is "841LOST" or "ACHLOST" and the control base assignment number was 148XX00005, and there are no credits held on the account.

• The financial institution returned the funds as a direct deposit reversal; however, the refund is released via a paper check.

• Follow normal refund inquiry procedures per IRM 21.4.2, Refund Trace and Limited Payability.

8
The account contains an IDRS history item such as "BKLD DO NOT RELEASE" or "BKLD DO NOT REFUND"

The account has a TC 720 or TC 841 credit with a TC 971 AC 134 or a TC 971 AC 199 RIVO freeze code.

Refer to the last closed RIVO control base and follow the instructions in this "If and Then "chart.

9
The taxpayer states the financial institution advised them their funds were returned to the IRS, provides a lead number and/or mentions the External Lead department

No open or closed RIVO control or indications of RIVO activity.

• Update AMS Notes with the following: name and contact information of the caller, name of the financial institution, and date of contact.

• Advise the caller to allow 90 days from the date of the call to either receive the refund or a letter regarding the review.

• If more than 7 days since the bank notified the taxpayer that the refund was returned to the IRS, prepare a Form e-4442, Inquiry Referral, and forward to RIVO using category - "RICS RIVO - External Lead". Advise the taxpayer to allow 60 days for a response.

The caller claims to be a tax return preparer who directed current year tax refunds into their account

Bank has told caller that the deposited refunds were returned to the IRS due to multiple refunds or name mismatch

1. Submit the following information via e-mail to the *RPO Referrals mailbox. Subject line of: "Attempt to Direct Deposit Client Refund to Return Preparer Bank Account".

2. Include a brief explanation of why the preparer called and the bullet items below:

   Example: Return preparer called because the bank sent the refund back to IRS instead of depositing the refund into the preparer’s bank account.

   • Preparer name

   • Preparer SSN number

   • Preparer PTIN

   • Preparer Firm EIN number (if available)

   • Preparer phone number

   • Bank routing number and account number

3. Inform the caller that taxpayers must direct deposit tax refunds to accounts in their name. This may explain why the bank returned the funds to the IRS. No exception to these rules exists for a tax return preparer.

   Note: The instructions for both Form 1040, U.S. Individual Income Tax Return, and Form 8888, Allocation of Refund (Including Savings Bond Purchases), instruct taxpayers not to request a deposit of their refund to an account that is not in their name, such as their tax preparer’s account.

4. Do not provide any specific information about a taxpayer’s account unless the caller has a power of attorney to receive it.

ALC: 20090900

Standard Entry Class (SEC) code: CCD

Transaction Type: 22

Receiving ABA routing number: 051036706

DFI account number: 82009090001

Receiving Company Information: Institution Name and Lead# (limit 22 characters) (Lead# = mmddyy seq# of lead, i.e., SunTrust #101414 39)

Tax Class: 20X0903

1
TOP Offset, regardless of age, validity, Agency, or Sub-Agency Code

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• Response is" No"

• ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• Update IDRS refund TIN and tax period in LMS as appropriate

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET"

  Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

• Close all RIVO control bases

2
TOP Offset, regardless of Agency or Sub-Agency Code

more than 5 years 11 months from the offset date and you determine that the return is NOT valid within RIVO scope and/or there are items of interest as discussed in the Note in paragraph 3 above.

Contact the TOP Liaison (through worklead) to determine the availability of funds

Funds Available

• Response is "Yes"

• See boxes below in this table for LMS updates and referral guidance.

• Update IDRS refund TIN and Tax Period in LMS if missing or incorrect.

  Note: The offset cannot be reversed via TC 290 Action Code (AC) 766. A manual reversal must be requested through the TOP Liaison via the Manual TOP Offset Reversal Request form.

No Funds Available

• Response is "No"

• Notate "Late Lead" in OSRL Remarks

• Update IDRS refund TIN and Tax Period in LMS as appropriate

3
TOP Offset, regardless of age, validity, Agency, or Sub-Agency Code

There is a posted or pending freeze indicating Exam, Frivolous Filer Program (FRP), Criminal Investigations or Duplicate/Amended return

• Response is" No"

• Notate LMS remarks "FLEAZ"

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET"

  Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

• Update IDRS refund TIN and tax period in LMS if missing or incorrect.

• Close all RIVO control bases

4
Return is determined to be valid per tolerances established in IRM 25.25.2.2.1(6),Data Mining Screening Tree and there is no significant underreporting at or above Exam criteria, see IRM 4.19, Liability Determination

There are no GATT, Frivolous Claim, Unallowable or dishonored/duplicate/erroneous payment/refund concerns as discussed in the Note in paragraph 3 above

• Response is "No"

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

  Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

• Update IDRS refund TIN and tax period in LMS as appropriate

• Close all RIVO control bases

5
Return is determined to be invalid per tolerances established in IRM 25.25.2.2.1(6), Data Mining Screening Tree

• Response is "Yes"

• Reverse entire available offset amount

• Indicate in OSRL LMS, "Fraud" and enter the offset reversal amount

• Update IDRS refund TIN and tax period in LMS as appropriate

• Send to scheme as appropriate (i.e., AQC, WOW, Exam, etc.; Current processing year through EFDS, Prior processing year through STARS/Manual Referral)

6
Agency Code 02/NON-TANF

150 days or more have passed from the offset date

• Response is "No"

• Notate “late lead” in the Remarks field of LMS

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

• Update IDRS refund TIN and tax period in LMS as appropriate

• Close all RIVO control bases

7
Referred TOP offset is fully reversed by TC 290 AC 766(s) and/or TOP Manual Reversal TC 700(s)

• Response is "PIR"

• Indicate "Fraud", "IDT"," Inj Sp", or "Other" as appropriate per your review. Additional Remarks needed should be entered in the Remarks field of the OSRL LMS database

• Update IDRS refund TIN and tax period in LMS as appropriate

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

• Close all RIVO control bases

8
Referred TOP offset is fully reversed by TC(s) 899(s)

• Response is "BFS"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

• Close all RIVO control bases

9
Referred TOP offset is fully reversed by a combination of TC 290/766 or 700 AND TC 899(s)

• Response is "Yes"

• Indicate "Fraud", "IDT"," Inj Sp", or "Other" as appropriate per your review

• Update IDRS refund TIN and tax period in LMS as appropriate

• Enter "0.01" as the offset reversal amount

• Notate "BFS/PIR" in the Remarks field of the OSRL LMS

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

  Note: This is done en masse on a regular basis using automated GII tools.

• Close all RIVO control bases

10
A portion (less than the entirety) of the referred TOP offset has been reversed by TC 290/766 or 700 and/or TC 899

You determine the return is valid within RIVO scope and there are no items of interest as discussed above in #3 REMINDER.

• Response is "No"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

  Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools.

• Close all RIVO control bases

10a
Conditions are the same as in scenario 10 above

You determine that the return is NOT valid within scope and revenue can be protected, along with funds available for recovery

• Response is "Yes"

• Reverse the entire available offset amount

• Indicate in OSRL LMS, "Fraud" and enter the offset reversal amount

• Update IDRS refund TIN and tax period in LMS as appropriate

• Input/Update EFDS and AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS). Select "Refund Offset" issue

• Refundable credits to be adjusted:

  1. Refer on OCSE manual referral to AQC spreadsheet with AMS 1040X Worksheet and notate EFDS as appropriate

  2. Send to scheme and update Category as appropriate

• No Refundable credits to be adjusted:

  1. Send to WOW (manual referral or systemic)

  2. Send to scheme and update Category as appropriate

11
Referred offset was generated from a dishonored or misapplied payment, or erroneous refund

• Response is "Yes"

• Notate the remarks field as needed

• Update IDRS refund TIN and tax period in LMS as appropriate

• Reverse entire available offset and input the offset reversal amount in OSRL LMS database

12
Referred offset is from an overpayment due to subsequent payment towards a balance due where there was an abatement or removal of tax/penalties, transferred ES payment, credit elect, etc.

• Select the appropriate response to provide based on research conducted

  Reminder: Full research and review of both the original and refunding module is required. Based on the outcome of your review, follow the appropriate scenario from above/below boxes in this table

13
Return is determined to be IDT

No taxpayer filing located

• Response is "Yes"

• Indicate in OSRL LMS "IDT"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Reverse entire available offset amount

• Enter offset reversal amount in LMS

• Notate EFDS

• Triage IDT filing by sending to scheme and updating as per IRM 25.25.5-1, Triage Procedures

  Note: Prior processing year, follow Mass Push procedures.

13a
Same condition as in 13 above

Valid taxpayer return located, and the claimed refund is equal to or more than the offset amount

• Response is "No"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures, including adjusting filing to taxpayer return as appropriate

  Caution: Do Not reverse the TOP offset

• Close all RIVO control bases

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

  Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

13b
Same condition as in 13 above

Valid taxpayer filing located and there is a balance due or zero return

• Response is "Yes"

• Indicate in OSRL LMS "IDT"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Reverse available offset amount

• Enter offset reversal amount in OSRL LMS

• Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures including adjusting filing to taxpayer return as appropriate

13c
Same condition as in 13 above

Valid taxpayer return located, and the claimed refund is less than the offset amount

• Response is "Yes"

• Reverse entire available offset amount

• Enter offset reversal amount in OSRL LMS

• Update IDRS refund TIN and tax period in LMS as appropriate

• Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures including adjusting filing to taxpayer return as appropriate

• After adjustments post, release remaining credit balance to taxpayer as appropriate

13d
Same condition as in 13 above

Taxpayer refund return located, but does not verify within tolerances established in IRM 25.25.2.2.1 paragraph 6 or contains GATT, Frivolous Claim, Unallowable or dishonored/duplicate erroneous payment/refund concerns as discussed in the Note of paragraph 3 above

• Response is "Yes"

• Enter "IDT" in ORSL LMS

• Update IDRS refund TIN and tax period in LMS as appropriate

• Reverse available offset amount

• Enter offset reversal amount in OSRL LMS

• Treat IDT filing and account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures including adjusting filing to taxpayer return as appropriate

• Treat taxpayer filing as appropriate :

• Refundable credits to be adjusted:

  1. Refer on OCSE manual referral to AQC spreadsheet with AMS 1040X Worksheet and notate EFDS as appropriate

  2. Send to scheme and update Category as appropriate

• No Refundable credits to be adjusted:

  1. Send to WOW (manual referral or systemic)

  2. Send to scheme and update Category as appropriate

  Note: Unallowables or other issues (as discussed in the Note in paragraph 3 above, manually refer as appropriate based on responsible functional area, including sending to scheme and updating Category as appropriate.

14
Only Schedule C, F, or Household Help (HSH)

All is true:

1. There is no IRP support

2. The filer did not verify as the TIN owner

3. There is no consistency

4. There is nothing on the return that can be used to verify the filer as the TIN owner

• Response is "Yes"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Reverse available offset amount

• Indicate "IDT" in the OSRL LMS database and enter the offset reversal amount

• Triage IDT filing by sending to scheme and updating as per IRM 25.25.5-1 , Triage Procedures

14a
Same condition as in 14 above

Any of the following is true:

1. There is IRP support

2. Filer verified as the TIN owner

3. There is a consistency in filing the schedules

4. There is other data on the return such as IDOCs with income and/or withholding that can be used to verify the filer as the TIN owner

5. There are no unallowable considerations as discussed in the Note in paragraph 3 above

• Response is "No"

• Update IDRS refund TIN and tax period in LMS as appropriate

• Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET "

Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

• Close all RIVO control bases

14b
Same condition as in 14 above

All conditions are true as specified in 14 above except, there are unallowables claimed on the return

• Response is "Yes"

• Reverse available offset amount

• Indicate "Fraud" in the OSRL LMS database and the offset reversal amount

• Update IDRS refund TIN and tax period in LMS as appropriate

• Refer return to the following:
  If refund amount claimed is $10K and over - Refer to Frivolous Return Program for current year returns. Prior year, refer through Lead to the Manual Referral Coordinator
  If refund amount claimed is under $10K, refer as normal

14c
Same condition as in 14 above

Exam previously disallowed a similar Schedule C, F. or HSH

• Response is "Yes"

  Reminder: The Schedule C may not be allowed, but the taxpayer may still qualify for refundable credits if claimed on the return

• Reverse available offset amount

• Indicate "Fraud" in the OSRL LMS database and the offset reversal amount

• Update IDRS refund TIN and tax period in LMS as appropriate

• Manually refer the return to Exam through the Manual Referral Coordinator and push to Scheme

• Update EFDS/STARS notes as appropriate

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS); Select "Refund Offset" issuer

15
Schedule C, F, or HSH with other types of income and/or withholding

Return is verified to be the TIN owner(i.e., IRP support, see IRM 25.25.8.9(6), External Offset Leads (State and Federal Agencies) above for unverified IRP, filer verification, consistency filing, or other data on the return that confirms the TIN owner)

• The Schedule C, F, or HSH will be accepted

• Review all other return items for validity and then based on the research completed, select the appropriate scenario above or below in this table to resolve the account

15a
Same condition as 15 above

Identity theft is verified

Follow guidance in 14 through 14c above

16
Offset involves an EIP payment

See the tables in paragraph 1 and 2 of IRM 25.25.8.3.2, Processing Economic Impact Payment Leads to determine eligibility requirements. If funds should be returned, take the following action to reverse the offset:

• Reverse the available TOP Offset(s) amount per IRM 21.4.6.5.12, TOP Offset Reversals with Adjustments. Use Hold Code 4 to hold the credit and notice.

• Open the control to "M" status with category "ELOF", place in suspense to "1481011111 "and use activity code "DECDEIP" for decedent cases or "IDTSEIP" for suspected or confirmed identity theft cases

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS). Select Refund Offset as the issue, and indicate offset reversal was input on EIP payment

• Update IDRS refund TIN and tax period in LMS as appropriate

• IRS response is "Yes"

• Input "EIP" and additional remarks as appropriate in LMS remarks column

• Monitor the account for offset reversal transaction to post. Do not take any additional actions. Subsequent actions will be taken by W&I to address the EIP
  
  If funds should not be returned:

  • Response is "No"

  • Notate EIP in the OSRL LMS remarks field

  • Input via IDRS CC REQ77, TC 972 AC 134 MISC field "BKLD OFFSET"

    Note: The TC 972 AC 134 is done en masse on a regular basis using automated GII tools

• Close all RIVO control bases

Director, Return Integrity Operation

2
"BKLD" (148XX00001)

An External Lead was received.

3
"REQFUNDS" (148XX00002)

IRS requested the funds (refund) from the financial institution.

4
"PND841BFS" (148XX00003)

Federal Refund Treasury Check received. Wait for TC 841 to post back funds.

5
"BKLDCKRECD" (148XX00004 or 148XX00007)

IRS received the funds (refund), the amount returned typically is less than the TC 846 due to bank fees.

6
"BKLCOMNGLD" (148XX00004 or 148XX00007)

IRS received the funds (refund) but is unable to determine the dollar amount to apply to this account or the account was previously adjusted, and the refund covered up with a TC 841. These funds are placed in a general ledger account.

7
"NOFNDSAVLB" or "NOFNDSRTND" (148XX00004 or 14XX00007)

No funds (refund) are available to be returned to the IRS or no funds returned (no response from the bank)

8
"BKLDACHREV" (148XX00005)

Automated Clearing House (ACH) Reversal associated to an External Lead.

9
"VALID150" (148XX00007)

When TC 720 posts, refund will be released.

10
"DONOTRELSE" or "DONOTRFUND" (148XXXXXXX)

TC 720 or TC 841 posted, and refund should not be released without approval from RIVO.

11
"PNDSTARS"(148XX00009)

Suspend until return has been pushed to STARS and can be referred

12
"FRAUDCASE", with Category code "ELOF" (148XX00012)

Suspend until offset reversal posts back to the account (TC 899)

13
"BKLD OFFSET"

There is a potential for an offset reversal based on account review

14
"3RDPRTYCK"

Third-party check received that has not posted.

15
"PNDMISCCK"

Payment received to repay a refund received in error.

16
"720PENDING"

Waiting for the posting of the TC 720. Funds to post back to the account

17
"PND722"

Waiting for the TC 722 to post

18
"722POSTED"

The TC 722 posted

19
"PND841" assigned to 148xx00014

Waiting for the posting of the TC 841. Funds to post back to the account.

20
"PND841" assigned to 148xx00017

Waiting for the posting of the TC 841. Funds to post back to the account.

21
"ALTEREDCK" assigned to 148xx00003

The refund check has been altered. i.e., money amount changed, name changed etc.,

22
"841POSTED"

Funds have posted back to the account.

23
"TCISCANCEL"

A treasury check has been canceled through TCIS and is waiting for the TC 841 to post to the account.

24
"PNDMISCCK"

A miscellaneous payment was received from the taxpayer to repay the refund. Waiting for the posting of the payment.

25
"BKLDERROR"

A control was opened in error.

26
"RFNDNOTHLD"

The refund was not held .

27
"REJECTTORI"

Reject the case back to refund inquiry.

28
"740POSTED"

The TC 740 posted to the account.

29
"720POSTED"

The TC 720 has posted to the account.

30
"NOTIRSFNDS"

The funds were not issued by IRS and they are not being requested back from the financial institution.

31
"DECEIP"

A lead involving a deceased taxpayer who received an Economic Impact Payment.

32
"IDTEIP"

A lead involving an Economic Impact Payment that has an indicator of identity theft.

Recovery from Third Party Check Letter

DEPARTMENT OF THE TREASURY

INTERNAL REVENUE SERVICE

ATLANTA, GA 30308

Date

Financial Institution

Address

City, ST Zip code

By: mail

Re: Recovery from Third Party Checks

We received third party checks that we believe were issued by you in connection with the filing of federal tax returns claiming a fraudulent tax refund. We are returning these checks to you as the identified issuing institution.

We wish to investigate whether any federal tax refunds were deposited to the accounts of the checks we have returned to you to ensure that we investigate and recover refunds that are improper federal payments. This letter is our request for your assistance with the investigation.

The Federal Right to Financial Privacy Act, as amended in 2008, authorizes you to assist us by providing financial records, upon request, when we are investigating or recovering an improper federal payment. In accordance with 12 U.S.C. § 3413(k)(2)(B), we request that you provide us with the following information about federal tax refunds that posted to the accounts related to the checks we are returning to you:

• Direct deposit (routing and deposit account) numbers,

• Federal tax refund amount,

• Date of deposit or ACH transfer,

• Name reported on the ACH file, and

• Social Security Number reported on the ACH file

Our request for direct deposit numbers is focused on the numbers your customer would enter on a federal tax return to direct a refund to your bank. We welcome additional information, such as the account or customer reference number, that will assist us in communicating with you about these refunds.

We ask that you create an electronic spreadsheet listing only suspect refunds that posted to accounts that currently have a positive balance. If there is no chance of returning any part of a refund, please exclude the refund from your spreadsheet. We ask that you provide the spreadsheet within 30 days from the date of this letter by secure email to efleads@irs.gov with a subject line following this format:

Recovery from Third Party checks, [Your Financial Institution Name], [Date]

Please mention this letter in the email body and include information about a point of contact at your institution. Please describe any potential patterns or trends of improper payment revealed by federal refunds you received, even if related to accounts with a zero balance or other accounts at your institution. If you include details about these other accounts, please make clear that you are not offering to return funds from those accounts, for example by listing the current balance on each account. You do not need to provide any detail if you are already working with another IRS office to report potential refund fraud.

We may later request that you return to us any refunds you identify to the extent that funds remain in the account. We may also request your best efforts to protect the funds in any accounts by stopping the re-issuance of these checks and refusing any further withdrawals or payments requested by the account holder.

Please direct any questions about this request to efleads@irs.gov.

We appreciate your assistance in this matter.

Sincerely,

Denise D. Davis

Director, Return Integrity Operation