3.17.15. Accounting Reports Analyst - Responsibilities

(1) IRM 3.17.15, Accounting Reports Analyst - Responsibilities, provides instructions to reports analysts at the Service Center (SC). Its primary use is for maintaining subsidiary accounts, internal controls and RRACS reports. These controls are necessary to comply with all administrative and legal requirements of the IRS, Department of the Treasury and the Government Accounting Office (GAO).

(1) The authorities for this IRM include:

1. 31 USC (United States Code) Chapter 11, The Budget and Fiscal, Budget and Program Information

2. 31 USC 3512, Executive Agency Accounting and other Financial Reports and Plans

3. 44 USC 3309, Preservation of Claims of Government Until Settled in Government Accounting Office (GAO)

4. 5 USC 552a, The Privacy Act of 1974

(1) This section provides responsibilities for:

1. CFO and Deputy CFO

2. Senior Associate CFO for Financial Management and Associate CFO for Revenue Financial Accounting

3. Revenue Accounting Operations office

4. HQ Accounting

5. Enterprise Computing Center, Martinsburg (ECC-MTB)

6. Submission Processing Campus

7. CFO Reports Analyst and Campus Accounting

(1) Program reports: In accordance with Management Accountability Review regulations, managers are responsible for ensuring that internal controls are effective and efficient in day-to-day operations and safeguard against waste, fraud and abuse.

(2) Program effectiveness: Managers are responsible for conducting operational or management control reviews to identify weakness and mitigate known risks. Managers must perform program or spot reviews for accuracy and completeness. Problems identified should be discussed with the appropriate functional area for corrective action. At least one program review should be performed each quarter by the manager, lead or reports analyst.

(1) Federal Government Accounting Requirements, 31 USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency and states that the head of each executive agency shall establish and maintain systems of accounting and internal control that provides:

1. Full disclosure of the financial results of the agency’s activities.

2. Adequate financial information needed for the agency’s management purposes.

3. Effective control over and accountability for all funds, properties and other assets for which the agency is responsible, including appropriate internal audits.

4. Reliable accounting results serving as the basis for preparation and support of budget requests, controlling the execution of its budget and providing financial information as required by the President or other designated authorities.

5. Suitable integration of agency’s accounting with Treasury’s accounting in connection with the central accounting and reporting responsibilities imposed by the Secretary of the Treasury.

(2) These systems must conform to the accounting principles, standards and related requirements, as prescribed by the Comptroller General of the United States. Historically, these have been reflected in the GAO Policy and Procedures Manual of Guidance of Federal Agencies.

(3) The accounting system of an executive agency or any of its component parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize and simplify accounting systems in the federal government are exercised under a joint program sponsored by the Comptroller General, the Secretary of the Treasury and the director of Office of Management and Budget (OMB). This program encourages the development of sound accounting practices within each executive agency in terms of financial information and control. This joint program sponsored by the Comptroller General, Secretary of the Treasury, and the Director of the OMB provides guidance to execute an integrated pattern of accounting and financial reporting for the government that is responsive to executive and legislative needs.

(4) The established accounting and reporting principles, standards and basic procedures considers various areas of responsibility involved, the elimination of overlapping operations and paperwork and the broader application of efficient methods and techniques in accounting operations throughout the government. Integration of revenue accounting data with central accounts maintained by Fiscal Service is accomplished primarily by the submission of monthly reports of deposit and classified collections and of disbursements from refund appropriations.

(1) The following terms and definitions apply to this program.

1. Abatement - The reduction or elimination of an assessment.

2. Accounting - An information activity that measures, processes and communicates financial information about an identifiable economic entity.

3. Account Balance -The difference in dollars between the total debit footing and total credit footing of an account.

4. Accounting Cycle - Sequence of steps followed in the accounting process, from analyzing transactions to preparing financial statements and closing the accounts.

5. Accounting Period - Time covered by financial statements, usually annual, quarterly or monthly. The annual financial statements are on a fiscal year basis.

6. Accrual - The recognition of an expense that has been incurred or a revenue that has been earned but that has not yet been recorded.

7. Accrual Accounting - The act of recording financial effects on an enterprise of transactions and other events in the periods in which these transactions and events occur rather than only in periods in which cash is received or paid by the enterprise.

8. Accrued Expenses - Expenses that have been incurred but are not recognized in the accounts, necessitating an adjusting journal entry; unrecorded expenses.

9. Adjusting Entities (Adjustments) - Entries made to apply accrual accounting to transactions that span more than one accounting period.

10. Agency Location Code (ALC) - Eight-digit Treasury identifier assigned by Bureau of the Fiscal Service (Fiscal Service) for Treasury reporting purposes. The first 2 digits identify the department or agency, the third and fourth digits identify the particular bureau in the department and the remaining 4 digits identify the particular agency account section within that bureau.

11. Appropriation - An act of Congress that provides budget authority to federal agencies to incur obligations and to make payments out of the Treasury.

12. Appropriation Symbol - Former name of the Treasury Account Symbol. Treasury designations for proper assignment and reporting of monies.

13. Assets - Probable future economic benefits obtained or controlled by a particular entity for past transactions or events.

14. Assessment - Taxes assessed, penalties and interest charged to an account.

15. Assessment Statute Expiration Date (ASED) - The date the statutory period for assessing tax ends. The time frame for assessing tax is normally three years from the due date, or three years from the date a return is filed, whichever is later. IRC Section 6501.

16. Attributes - Information appended to a financial transaction or account that identifies such things business object class, federal-non-federal as in Frontier attributes.

17. Audit Trail - The documentary evidence of written approval by key people in a business in routinely reviewing and verifying expenditures before a payment is made.

18. Balance Sheet - A statement of net assets and liabilities.

19. Batch Process - Computer processing of business transactions and preparation of financial reports in which processing tasks are scheduled in a logical order.

20. Classification -The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class application.

21. Closing (Closeout) Entries - Journal entries made at the end of an accounting period before the next accounting period is opened.

22. Collection Statute Expiration Date (CSED) - The date the statute expires for collection of tax, penalty or interest. The CSED is ten (10) years from the assessment date 23C date of the posting of the original return (transaction code (TC) 150).

23. Compound Entry - A journal entry that has more than one debit and /or credit entry.

24. Contra Account - An account whose balance is offset from an associated account in the financial statements.

25. Control Account - An account in the general ledger that summarizes the total balance of a group of related accounts in a subsidiary ledger.

26. Current Liabilities - Obligations due within the normal operating cycle of the business not to exceed one year.

27. Custodial Detail Data Base (CDDB) - The CDDB is an enhancement to the Financial Management Information System created to track all individual payments that comprise a deposit ticket and balance the individual transactions against the deposit ticket totals which have been entered into the RRACS general ledger. It also includes refund transactions and unpaid assessments.

28. Daily Posting Summary - Summarizes each accounting transaction that successfully posted to and updated the database. This listing will be considered the transaction journal for accounting purposes and the permanent record for research, audit trails, etc.

29. Debit Voucher - SF 5515 - summary document used by a bank to control returned dishonored checks or to adjust deposit tickets.

30. Deposit Ticket - SF 215/SF 215A - summary document issued by a bank for the purpose of summarizing and classifying collections received for a specific deposit date.

31. Disbursement Accounts - Series of accounts that record monies disbursed as refunds of previously collected revenue or funds.

32. Document Locator Number (DLN) - A controlled number assigned to every return or document input through the Automated Data Processing (ADP) system. The fourteenth (last) digit is the year of processing and is assigned by the campus computer at the time of the original input. The DLN is used to control, identify and locate documents processed in the ADP system.

The format of a DLN is as follows:

• First 2 digits - Filing Location Code (FLC)

• Third digit - Tax Class

• Fourth and Fifth digits - Document Code (Doc Code)

• Sixth, Seventh and Eighth digit - Julian Date

• Ninth, Tenth and Eleventh digits - Block Number

• Twelfth and Thirteenth digits - Serial Number

• Fourteenth digit - Year the DLN was assigned

33. Earned Income Tax Credit (EITC) - A tax credit for certain people who work and have earned income.

34. End of Day Routine - The process used to ensure that the database is in balance at the end of each work-day and ready to be backed up at Enterprise Computing Center (ECC) Detroit. Daily reports are also generated.

35. Enterprise Computing Center (ECC) - The computing site primarily responsible for maintenance of the Master File records for each taxpayer and for the electronic processing of related inputs and outputs.

36. Erroneous Refund Statute Expiration Date (ERSED) - Expires two years from the date of the refund (T C 846/840) if caused by the IRS or five years from the date of the refund (TC 846/840) when it is proven that the refund was issued due to fraud or misrepresentation of material fact by the taxpayer.

37. Expenses - Outflows or other using up of assets or incurrence of liabilities from delivering or producing goods, rendering services or carrying out of other activities that constitute the enterprise’s ongoing major or central operations.

38. FACTS ll Trial Balance - The Federal Agencies' Centralized Trial-Balance System (FACTS ll) is a computer program that allows agencies to submit one set of accounting data. This data includes mostly budgetary information that is required for the Report on Budget Execution and Budgetary Resources (SF 133), the End-Year Closing Statement (BFS 2108) and much of the initial data that will appear in the prior year column of the Program and Financing (P&F) Schedule of the President's Budget.

39. Federal Financial Management Improvement Act (FFMIA) of 1996 - Public Law 104–208, Title Vlll (31 USC. 3512 note) was intended to advance federal financial management by ensuring that federal financial management systems can and do provide reliable, consistent disclosure of financial data and that they do so on a basis that is uniform across the federal government from year to year consistently using professionally accepted accounting standards.

40. Federal Financial Management System Requirements (FFMSR) - FFMSR specifies the mandatory functional and technical requirements that agency financial management systems must meet to be considered compliant with federal standards as mandated by the Federal Financial Management Improvement Act (FFMIA).

41. Financial Event - Any occurrence having financial consequences to the federal government related to the receipt of appropriations or other financial resources; acquisition of goods or services; payments or collections; recognition of guarantees, benefits to be provided, or other potential liabilities or other reportable financial activities.

42. Financial Position - The economic resources belonging to a company and the claims against those resources at a point in time.

43. Financial Reporting Process - Ensures that the system provides the basic reports and on-line information access needed to review financial information and to fulfill central agency reporting requirements.

44. Financial Statement - A presentation of financial data and information from the results of operations and cash flows or changes in financial position.

45. Financial Transaction - Economic events that affect the financial position of the business entity.

46. Fiscal Year - Any 12 month accounting period used by an enterprise. For reporting purposes, a fiscal year extends from October 1 through September 30.

47. Fiscal Year-End Processing - The process by which fiscal year-end reports are generated after verifying September month-end reports and all nominal account balances are closed out.

48. FRONTIER - A Treasury Department data warehouse which receives monthly uploaded financial accounting and budgetary data from subordinate bureaus and other reporting entities within the department.

49. General Ledger - A record containing all accounting transactions aggregated from posted journal entries from subledgers and organized by chart of accounts.

50. General Ledger Account - The basic system of record for accounting data used for financial statement reporting. There is a separate account for each asset, liability, and component of owner’s equity, including revenues and expenses.

51. Government On-line Accounting Link System II - Government On-Line Accounting Link System II (GOALS II) is the system that allows Fiscal Service to receive agency accounting data and forward it to various systems within Fiscal Service for final processing and to distribute agency accounting reports.

52. Intragovernmental Payment and Collection System (IPAC) - Intragovernmental Payment and Collection System. All IPAC receipts are reflected in Account 2910. IPAC amount will be reported on SF 224.

53. IPACD - This report tracks IPAC disbursements by Document (Doc) ID waiting to be applied. The IPACD reports lists IPAC disbursements by Accounts 4970, 4975 and 4985. Each transaction is listed by Doc ID, beginning balance, adjusted amount and current balance. This report is produced monthly. The current month activity equals the current month balance on the Daily Trial Balance report.

54. IPACR - This report tracks IPAC receipts by document number, that are waiting to be applied. The IPACR report lists IPAC receipts by Accounts 4970, 4975 and 4985. Each transaction is listed by Doc ID, beginning balance report. This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance report.

55. IRS Account - RRACS General Ledger Account

56. Joint Financial Managers Improvement Program (JFMIP) -A joint undertaking of the: U.S. Department of the Treasury; Government Accountability Office (GAO); Office of Management and Budget (OMB); and Office of Personnel Management (OPM), working in cooperation with each other, with other agencies and with the private sector, to improve financial management in the federal government.

57. Journal - A detailed, chronological record of all financial transactions of a business.

58. Journal Entry - A separate entry in a journal used to record a transaction.

59. Ledger - A file of all accounts within an enterprise, arranged as in the chart of accounts.

60. Ledger Classification - A unique identification contained in RRACS indicating how money or items post to the IRS general ledger accounts, tax class, appropriation symbols, recap and Net Tax Refund Report (NTRR) line numbers, deposit source codes and type of input documents.

61. Ledger Entry - An entry into the General Ledger.

62. Liabilities - The financial obligations of an enterprise.

63. Memo Entry - A written record that supports journal entries without postings to the general ledger.

64. Month End Closing - A set of procedures that must be followed to close out the month, generate reports and set up the database for the next month's transactions. Per the initiative set forth by the Secretary of the Treasury, these procedures should be started on the second workday after the close of the accounting month.

65. Nominal Account - Accounts showing the accumulation of revenue and expenses for only one accounting period. Nominal accounts roll into Account 9998 at the end of each fiscal year leaving this account at zero.

66. Non-Tax Receivables - The net total of non-tax monies posted on Master File and CADE that have an outstanding module balance.

67. Notes to the Financial Statements - A section of the corporate annual report containing notes that aid the user in interpreting the financial statements.

68. Office of Management and Budget (OMB) Circular A-127, Financial Management Systems - Requires financial management systems to reflect an agency-wide financial information classification structure that is consistent with the U.S. Standard General Ledger (SGL), provides for tracking of specific program expenditures and covers financially related information.

69. Opening Balances - Beginning balances for all real accounts at the start of the fiscal year.

70. OTCnet - Over the Counter Network the application that automates the over-the-counter deposit process.

71. Other Assets - Assets owned by a company other than current assets and property, plant and equipment.

72. Posting - The process of transferring journal entry information from the journal to the ledger.

73. Posting Number - Same as a journal number assigned by the system, comprised of a window number (3 digits), the system date (MMDDYY) and a number (3 digits) increments each time a transaction is posted using the window (e.g., 210–102201–0001).

74. Post Closing Trial Balance - A trial balance prepared at the end of an accounting period after all adjusting and closing entries have been posted. It serves as the final check in the balance of the ledger.

75. Real Account(permanent account) - The accounts where balances are not canceled out at the end of an accounting period but are carried over to the next period. These accounts appear on the post-closing trial balance and the statement of condition (balance sheet).

76. Receipt Account - Series of accounts used to record the receipt of and the accountability for monies received for deposit into the Treasury. The accounts are listed by type of receipt received and represented by the Treasury Account Symbol (TAS).

77. Reclassification - Adjustments made to correct tax classifications of revenue.

78. Reconciliation - The act of ensuring that the total of the monetary balance of the appropriate general ledger account agrees with the balance in the related subsidiary account and the variances are identified and accounted for.

79. Redesigned Revenue Accounting Control System (RRACS) - The automated system used to provide accounting control for all revenue accounting transactions. The database, located at ECC-Detroit, consists of general ledger account, plus a variety of internal records used for balancing and reporting.

80. Refund/Disbursement - Record monies paid out as refunds of previously collected revenue of funds. Disbursements are recognized at the time of payment or confirmed by the Disbursing Office.

81. Refund Statute Expiration Date (RSED) - The RSED is generally three years from the Return Due Date (RDD) for prepaid credits if a return was filed, or two years from the payment date for other payments whichever is later.

82. Reliability - The qualitative characteristic of accounting information that has the traits of representing truthfulness, verifiability and neutrality.

83. Revenue - Inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.

84. Revenue Receipts - Collection of taxes, penalties, interest and costs assessed or assessable against taxpayers and payments on accepted offer in compromise (OIC), are classified as revenue receipts. Amounts received as payment of court fines, court costs, forfeitures, penalties incident to, or imposed for, violation of applicable laws from the redemption of property acquired by the government and receipts from consummated sales of acquired property, will also be classified for deposit as revenue receipts.

85. Reversing Entry - Entry made at the beginning of the accounting period after the closing of records for the prior accounting period; it reverses certain adjusting entries and is designated to aid in routine bookkeeping for the next accounting period.

86. Seized Property (Assets) - Monetary instruments, real property and tangible personal property of others, including illegal drugs, contraband and counterfeit items seized by authorized law enforcement agencies as a consequence of various laws, in the actual or constructive possession of the custodial agency.

87. Statement of Custodial Activity (SOCA) - Financial report required for entities that collect non-exchange revenue for the General Fund of the Treasury, a trust fund or other recipient entities.

88. Subsidiary Account - Subsidiary record that details information in support of general ledger accounts.

89. Subsidiary Ledger - A supporting group of records or accounts that equal the balance of a controlling account in the general ledger.

90. Tax Class - The process of assigning all transactions to the appropriate accounts. All amounts of revenue collected during a current fiscal year will be controlled and reported by the tax class of application.

Tax Class explanations:

• Tax Class 1 - Withholding and Federal Insurance Contribution Act (FICA)

• Tax Class 2 - Individual Income

• Tax Class 3 - Corporation Income

• Tax Class 4 - Excise

• Tax Class 5 - Estate and Gift

• Tax Class 6 - Non-Master File

• Tax Class 7 - Railroad Retirement (RRT)

• Tax Class 8 - Federal Unemployment Tax (FUTA)

91. Tax Period - A six-digit number which represents the end of the tax liability year for a return; and is designated by the year and month.

92. Taxes Receivable - Amounts that the taxpayers have agreed to, or the courts have set. Taxpayer voluntarily files a return without full pay; taxpayer agrees with the IRS assessment; amount owed was determined by Appeals or Tax Court; taxpayer enters into an installment agreement; taxpayer files an OIC; or taxpayer starts paying the assessment.

93. Trace Identification (TID) - The CDDB mechanism that identifies each deposit ticket and its corresponding payments is a 20-digit number made from 14 characters related to the corresponding deposit ticket and 6 characters representing the Detail Payment Transaction Record for an individual payment.

94. Transaction Type - As referenced in the posting model, a transaction type provides descriptive information as to the kind of transaction being processed on a specific window or batch process. Examples are deposits, reclassification, regular refunds, refund reversals, etc.

95. Treasury Account Symbol - Formerly the appropriation symbol, the account number assigned by Treasury to classify agency transactions; Treasury account symbol structure that includes the following components defined by Treasury and OMB: sub class, agency code, hyphen (when co-owner is not null), transfer agency, fiscal year, main account number and sub account number.

96. Treasury Information Executive Repository (TIER) - A Department of the Treasury data warehouse, which receives monthly, quarterly and fiscal year-end financial and budget data in the form of a trial balance from Treasury bureaus and other reporting entities within the Department of the Treasury. The data is uploaded and validated based on TIER's defined validation checks. The uploaded data is initially stored in a TIER holding area until bureaus verify its accuracy. Replaced by FRONTIER.

97. Trial Balance - A listing of accounts in the general ledger with their debit or credit balances in respective columns; used to test the equality of debit and credit balances in the ledger.

98. Twenty-Three C Date (23C) - The date a liability is assessed.

99. USSGL (SGL) - The U.S. Standard General Ledger includes a chart of accounts and technical guidance established to support the consistent recording of financial events as well as the preparation of standard external reports that are required by the central agencies, such as the OMB and Treasury. The Treasury Financial Manual (TFM) USSGL Supplement provides: a list of the accounts (for example., the chart of accounts); descriptions of each account; a listing of transactions processed by federal agencies; the posting models, including debit and credit pairs, for each type of transaction; the USSGL attributes that are an integral part of the USSGL; and crosswalks from the USSGL to various external reports, including the SF 133 and the actual year column of the Program and Financing Schedule in the President's budget. The OMB policies regarding the USSGL are in OMB Circular No. A-127, Policies and Standards for Financial Systems. Specifically, the A-127 requires that agencies record financial events throughout the financial management system using the USSGL at the transaction level. This is a legal requirement.

100. Window - An area of the screen with visible boundaries within which information is displayed. A window can be smaller than or the same size as the screen. Windows can appear to overlap on the screen.

101. Worksheet - A type of working paper that is used as a preliminary step in and aid to the preparation of financial statements.

102. Write-Off - An acknowledgement of loss or the failure to recover an asset.

(1) The following acronyms apply to this program.

(1) The following IRMs provide additional instruction.

1. IRM 3.0.167 - Losses and Shortages

2. IRM 3.5.10 - Remittance Transaction Research (RTR) System

3. IRM 3.8.44 - Campus Deposit Activity

4. IRM 3.8.45 - Manual Deposit Process

5. IRM 3.8.46 - Discovered Remittance

6. IRM 3.8.47 - Manual Deposit for Field Office Payment Processing

7. IRM 3.10.5 - Batch/Block Tracking System (BBTS)

8. IRM 3.10.72 - Receiving, Extracting, and Sorting

9. IRM 3.10.73 - Batching and Numbering

10. IRM 3.17.5 - Hardcore Payment Tracers

11. IRM 3.17.10 - Dishonored Check File (DCF) and Unidentified Remittance File (URF)

12. IRM 3.17.20 - Refund Intercept Program

13. IRM 3.17.21 - Credit and Account Transfers

14. IRM 3.17.30 - SC Data Controls

15. IRM 3.17.41 - Excise Reporting

16. IRM 3.17.46 - Automated Non-Master File Accounting

17. IRM 3.17.50 - Redesigned Revenue Accounting Control System (RRACS) Procedures

18. IRM IRM 3.17.63 - Redesigned Revenue Accounting Control System (RRACS)

19. IRM IRM 3.17.64 - Accounting Control General Ledger Policies and Procedures

20. IRM 3.17.79 - Accounting Refund Transactions

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

22. IRM 3.17.220 - Excess Collections File

23. IRM 3.17.221 - Enterprise Computing Center Data Controls

24. IRM 3.17.243 - Miscellaneous Accounting

25. IRM 3.17.244 - Manual Assessments

26. IRM 3.42.5 - IRS e-file of Individual Income Tax Returns

27. IRM 21.4.1 - Refund Research

28. IRM 21.4.2- Refund Trace and Limited Payability

29. IRM 21.4.3 - Returned Refund Releases

30. IRM 21.4.4 - Manual Refunds

31. IRM 21.4.5 - Erroneous Refunds

(1) Reports referenced throughout this IRM include the following.

(1) Subsidiary accounts referenced throughout this IRM include the following.

(1) List of TAS for TIER Reporting identifies the TAS associated with each Standard General Ledger (SGL) account. The table identifies each TAS code, TAS name and TAS category. These TAS codes will be used in the posting model as well as in the records for the TIER files.

(1) Review the action plan with the P&A staff analyst.

(2) Ensure that the accounting information is correct.

(3) Assist in the coordination of meetings with responsible officials to ensure that all actions are completed prior to the target date.

(4) After the transfer is complete:

• Review the Accountability package for accuracy and completeness.

(5) Accountability package should contain:

• Director's memo

• Campus Director's memo

• General Ledger trial balance

• Account 7500

• DO Inventory Detail Report

• Loss/Shortage Report

• Form 3996

• Form 3997

• CARS (RRACS Reports 20A/20B)

• Copy of the final action plan

(6) The items listed in #5 should be uploaded to https://irsgov.sharepoint.com/sites/Director's%20Accountability/SitePages/LearningTeamHome.aspx Directors Accountability Sharepoint.

(1) Report 003 - Ensure accounts are in zero balance, especially those that do not belong to your campus.

(2) Report 004 - Ensure copy of the status report is also included. Verify the report with any items in reverse status. Check to ensure accounts that do not belong to your campus are in zero balance. If any are found not in zero balance, verify the RRACS journals are correct with the DBA and determine what actions are necessary to resolve the account balance. The authority for certification of this report can be designated by the CFO Department Manager.

(3) Accounts 2320, 2330, 2335, 2340 and 2395 combined should balance to Account 6310. If it does not balance, research the general ledgers.

1. Reports analyst review of this balance is completed quarterly, this balance is completed in RACS and reviewed monthly by the RACS manager.

(4) Accounts 2305, 2310, 2320, 2325, 2345, 2350, 2355, 2360, 2365 and 2370 combined should balance to Account 6400. If it does not balance, notify the DBA for further research.

(5) Accounts 4710, 4720 and 4730 combined should balance to Account 7002. If it does not balance, research the general ledgers.

(6) Report 017- Ensure Trace ID has correct amount of digits.

(7) Report 025- Ensure assessment dates are for current month (tape process will include first six days of new month).

(8) Report 0577- Ensure the amount matches with the Accounts 7610, 7620, 7649 and 7650.

(9) A reverse status report explaining the conditions of accounts in reverse status must be reviewed, signed and dated by the reports analyst before being ed to CFO.

(10) The final RRACS 020 and 020B Report, CARS Statement of Transactions and the transmitted CARS Statement of Transactions, posted copy, must be signed and dated by the 5th working day of the month by the CFO Department Manager, or his/her designee. A signed copy of the final RRACS 020, 020B report and the signed posted CARS Statement of Transactions copy will be retained at the campus for use by GAO in its site audit.

(1) This report assists the Erroneous Refund team to track erroneous refunds by Doc ID. The Erroneous Refund Report lists erroneous refunds by Account 1530 (employee fraud cases), Account 1535 (court cases) (Kansas City Only) and Account 1540 (non-court cases). Each transaction is listed by Doc ID, date, beginning balance, adjustment amount and current balance.

(2) This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance report.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

(2) The Unapplied External Leads Report helps the accounting functions track the status of the external leads deposits and applications. External leads are listed on the report by deposit ticket number. This report lists external leads in Account 4971, Unapplied External Leads. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount and current balance.

(3) This report should be reviewed quarterly and signed by a manager.

(1) This report tracks IPAC disbursements (by Doc ID) waiting to be applied. The IPACD report lists IPAC disbursements by Accounts 4970, 4975 and 4985. Each transaction is listed by Doc ID, beginning balance, adjusted amount and current balance.

(2) This report is produced monthly.

(1) This report tracks insolvency receipts by document numbers that are unclassified and waiting to be applied to the correct tax class. This report lists the receipts in the Suspense Account 4625. Each transaction is listed by Doc ID, beginning balance, adjusted amounts and current balance.

(2) This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance Report.

(1) This report tracks revenue credit in transit to campuses (by Account 4900), by Doc ID and by debit and credit. The Doc ID format is XXXX-XX-XX-XX (Sequence number-SC Transferred Into-Year-SC Transferred From).

(2) This report is produced monthly. The current month activity equals the current balance on the Daily Trial Balance Report.

(1) This report supports the Field Inventory Detail Report. It provides a detailed list of each individual record in the Deposit Fund Liability Account 4730 and the miscellaneous deposit funds for each field.

(2) Deposit Fund Liability Account

1. Total Miscellaneous Deposit Funds - Lists each Doc ID in order, original prepared date and balance that is in open status (this report should equal Account 4730).

(3) The report will be sorted in field office order and then in Doc ID order.

(4) This report should be produced monthly and issued to the area that maintains the Form 2236 and quarterly to the Scheme Development Center (SDC) resident agent in charge (RAC), or any other office concerned according to case history, to ascertain what disposition should be made of the payments. A response (verification) is required for the reports issued March 31 and September 30.

(5) The area maintaining the miscellaneous deposits will issue a two-way memo to the Resident Agent in Charge. The memo will include taxpayer's name, Employer Identification Number (EIN)/Social Security Number (SSN), tax class, tax period and amount. Sufficient space should be reserved in the remarks column used for insertion of notations by involved operations. Responses should be returned within 30 days.

(6) Responses, either agreeing to the inventory report or reconciling any discrepancy, should be forwarded to Accounting Control Operation within 30 days after receiving the listing. accounting will ensure that all responses have been received and will complete reconciliation procedures not more than 60 days after the listing was issued.

(7) This report will be disposed of one year after each semi-annual verification.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

(2) The Identity Theft Erroneous Refund Activity report helps the Erroneous Refund function track identity Theft erroneous refunds by Doc-Id. This report lists erroneous refunds in Account 1545, ID Theft Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount and current balance.

(3) Report 0155A is available for viewing on RRACS and may be printed as needed.

(1) This is a monthly report produced by the RRACS system.

(2) The current month activity must equal the current balance on the Daily Trial Balance Report and the current balance will equal to the Monthly Trial Balance Report.

(1) This is a monthly report produced by the RRACS system.

(2) The Identity Theft Erroneous Refund Open Case report help the Erroneous Refund function track ID Theft erroneous refunds by Doc Id.

(3) This report lists all open erroneous refunds in Account 1545, ID Theft Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning and current balance.

(4) By default, this report will not print and the user must retrieve it electronically from RRACS.

(1) This is a monthly report produced by the RRACS system.

(2) This report lists all IDT erroneous refund cases that have matched. Each transaction is listed by date, doc-id and amount.

(3) This report will be placed in the SPC Reports Main Menu/Miscellaneous folder.

(1) This is a monthly report produced by the RRACS system.

(2) This report lists all unmatched IDT erroneous refund cases. Each transaction is listed by doc-id, amount and error code type. Further research must be conducted.

(3) This report will be placed in the SPC Reports Main Menu/Miscellaneous folder.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

(2) The Payment Over Cancellation (POC) Erroneous Refund Report helps the Erroneous Refund function track POC cases by Doc-Id. This report lists erroneous refunds in Account 1543, Payment Over Cancellation Erroneous Refunds. Each transaction is listed by Doc-Id, date, beginning balance, adjustment amount and current balance.

(1) This is a monthly report produced by the RRACS system. The current month activity must equal the current balance on the Daily Trial Balance Report.

(2) The Return Preparer Misconduct (RPM) Erroneous Refund Report helps the Erroneous Refund function tract RPM case by Doc-id. This report lists erroneous refunds in Account 1547, Return Preparer Misconduct Erroneous Refunds. Each transaction is listed by Doc-id, date, beginning balance, adjustment amount and current balance.

(3) This report does not need to be printed unless needed or requested.

(1) Form 3996, Tax Revenue Receipts Recap is used to balance Direct Revenue Receipts by tax class to the Service Center Control File (SCCF), Revenue Receipts Control Sheets and all other accounts that include current revenue receipt monies.

(2) Monthly, prior to submission to HQ, the Data Control function should provide a complete Form 3996 package to the reports analyst. Photocopies or original spreadsheets highlighting "what" is being carried for the month. Back-up should be provided to the reports analyst upon request. Once this review has been performed, the reports analyst must digitally sign the Form 3996 and return the reviewed package to Data Control for timely submission to HQ.

(3) Ensure Form 3996 is digitally signed and dated by the 25th of each month by the accounting technician and the Accounting Operations chief. The Form 3996 and supporting documentation must be uploaded to the SP SharePoint by close of business the 25th of each month.

(4) A comprehensive status report is required for any columns that contain an Out of Balance (OOB) condition.

(5) All items on lines 8, 11, 12 and 13 should have audit trails.

1. Line 8 - Items that cannot be corrected; should be carried forward each month.

2. Line 11 - Items that have been controlled on either URF, DCF or SCCF but have not been journalized within the current month.

Note: Increases to the SCCF are a plus and decreases to the SCCF are a minus to line 11.

3. Line 12 - Items that have been journalized but not controlled.

   Note: Items on lines 11, 12 and 13 should be cleared the following month.

4. Line 13 - Items from prior month.

5. Line 14 - Sum of lines 11, 12 and 13.

6. Line 15 - Should be all zeros.

(6) RRACS 072 - Page 1 should match with Line 1. RRACS 072 page 3 should match line 2.

(7) SCCF 07–56 - Match with Line 4 (2nd day of new month).

• SCF 11–42, Master Control Record Listing (CRL) for Mainline, Residual Remittance Processing System (RRPS) and IDRS

• SCF 11–51, Tape CRLs for Mainline (includes RRPS) and IDRS

• SCF 11–49, Nullified CRL

• SCF 11–41, Adjustment CRL

• SCF 11–47, Renumber Reclassification Summary

• SCF 11–46, Renumber CRL

• SCF 11–48, New DLN Record List

• SCF 07–42, Control File Summary

• SCF 07–43, Invalid Transcripts

• SCF 01–41, Invalid CRL

• SCF 07–47, Pre-Journalized (PJ) Trial Balance

• SCF 07–48, PJ Trial Balance - Future DLN List

• Form 4028 and Form 4028A

(8) Employees who balance accounts and prepare the monthly Form 3996, Tax Revenue Receipts Recap/Form 3997, Reconciliation of General Ledger Accounts should be rotated periodically to mitigate the risk of fraud that could occur to the financial records.

(1) This manual report will be prepared by the campus monthly on letter size paper to report the balancing of the subsidiary accounts to the general ledger accounts. This report must not be altered. All accounts must remain on this form and filled in even if there are zero balances. This report will be used to alert the campus and HQ of any imbalances between the accounts and any processing problems within the campus.

(2) Balance sheets must include the following:

• Journal number or doc-id with money amount

• Item count and expired statute count (if applicable)

• Reconciled total clearly identified

• Aged total clearly identified

• Unreconciled total clearly identified

• Total balance for each subsidiary account sheet must equal general ledger

(3) A comprehensive status report is required for any account reported as either aged reconciled, unreconciled or both. It must contain the following information, as appropriate:

• Account number at the top of the report along with total money amount.

• Item count and money amounts making up the total amount, with a clear and detailed explanation for the imbalance.

• Attempts made and methods used to correct imbalances must be noted for each item. Follow-up attempts for correction should be made and documented monthly.

• Last accounting period through which the account is completely reconciled on a current basis (for example, had none of the present aged items in it).

• Estimated date the account will be reconciled.

• Any existing problems that may prevent reconciliation.

• Identifying information that is pertinent for the items that make up the imbalance, such as: Doc ID, cycle, tape journal, etc.

  Note: If there is more than one item for the same account and the explanation is the same, one explanation is sufficient, but list the money amounts for each item.

  Note: If there is more than one item and the explanations are different, list the amount and explanation separately.

  Note: If the problem is systemic (a file or tape run) and there are numerous items, put the total amount with the explanation.

• Important note: Use information that identifies the items, such as, IPAC ID, Doc ID, cycle, tape journal, etc.

(4) All credit amounts on Form 3997 and the comprehensive reports, must be bracketed.

(5) Ensure Form 3997 reflects the correct accounting period and money amounts.

(6) Definition of Terms on Form 3997:

• Reconciled- When a variance exists between RRACS and the subsidiary accounts and the corrective action is a journal action to RRACS or a correction to the subsidiary ledger that was identified after the month has ended. If the report is a July 31 month-end and the item is journalized in August to get the account reconciled, it would show in the reconciled column.

• Aged Reconciled- (Example: Form 3997 for the month of July 31, 2009) - If the transaction for this same item listed previously is still not completed by August's EOM processing, then it becomes an aged reconciled item.

• Unreconciled Item- If there is an out-of-balance condition and the way to correct it is not clear (an adjustment to RRACS/subsidiary), then it will be reported as an unreconciled item. If this item is reconciled by the following month end, but actions required were not completed by EOM, then it must be reported under aged reconciled.

(7) Form 3997 must be digitally signed by the field director, the Accounting Operation manager, the team manager and the reports analyst.

(8) Form 3997 will be supported by balancing sheets maintained in the campuses. The following documentation must be attached to Form 3997 when emailed to HQ:

• Copies of the BMF, IMF/CADE Form 6168

• Comprehensive status reports as described above

• Summary page from the spreadsheet used to balance the sub-accounts which includes the monthly totals and volume

(9) Original of Form 3997, with all the back-up, will be maintained in the GAO file by the campus.

(10) No later than the 25th of the following month, a copy of the signed Form 3997, Form 6168, General Ledger Reconciliation with ECC RACR - Reciprocal Accounting Control Record and the comprehensive reports, should be uploaded to the SP SharePoint. An upload confirmation must be emailed to the CFO HQ RACS analyst at &CFO:FM:CFM RACS Analyst. The uploaded documents must reflect the same figures and account information as the signed copy maintained in the GAO file. If problems occur and it is felt this time requirement cannot be met, contact CFO HQ RACS analyst for further instructions. It should be noted that an out-of-balance condition is not justification for this report to be submitted late. The Form 3997 is reported on the SP/CFO and Treasury Score Card.

(11) Additional reminders for Form 3997:

1. The Quarterly Form 3997 is to be completed and signed for the months of March, June, September and December and emailed along with Form 3997 to CFO HQ.

2. Keep a copy of your email showing that the Form 3997, Form 6168 and comprehensive reports were uploaded to the SharePoint on or before the 25th of the following month behind your original documents that are kept in your GAO file.

3. The monthly Form 5199A (maintained by ECC and available on Control D) must be included as supporting documentation in front or behind the Form 6168 maintained in the GAO file by the campus.

(12) Employees who balance accounts and prepare the monthly Form 3996, Tax Revenue Receipts Recap or Form 3997, Reconciliation of General Ledger Accounts should be rotated periodically to mitigate the risk of fraud that could occur to the financial records.

(1) The monthly RACR is due the 15th of each month to ECC and submitted monthly on the 25th with the Form 3997, Reconciliation of General Ledger Accounts to CFO and HQ.

(2) Ensure supporting documentation is attached.

(3) The RACS DBA or Balancing Team emails this report to the CFO contacts and to the reports analyst; showing the date, contacts and documentation sent to update the score card.

(4) The reports analyst receives all copies of the RACR with supporting documentation for review and initials.

(1) The SF 224, Statement of Transactions, is generated at the EOM processing and is used to report account classification of collections, refund disbursements, refund check cancellations and transactions processed. It is broken down into three RRACS reports:

• RACS Report 0020 SF 224 Statement of Transaction Section I - (requires signature)

• RACS Report 020A SF 224 Direct Report Transaction Section I

• RACS Report 020B SF 224 Reclassifications Section I - (requires signature)

(2) SF 224, Statement of Transactions and Reclassification must be signed by the CFO RACS department manager. A signed copy of the SF 224 reports will be retained at the campus for use by GAO in its site audit.

(3) The SF 224 reports is reviewed by the reports analyst before forwarding to the CFO RACS department manager for signature.

(4) The RACS DBA emails on or before 1:00 PM Local Time Zone on the 2nd workday of the new month to CFO HQ Accounting. The CFO RACS department managers' copy is ready for review by the 3rd workday after any supplemental are completed as needed.

(5) If a supplemental is needed, the RACS DBA will input the data to CARS, an automated Fiscal Service system for transmission to Treasury.

(6) The CFO RACS department manager's folder should contain RRACS Reports 020, 020A, 020B, Transmittal worksheet and SF 224 Adjustments (if any).

(1) These reports indicate the timeframe of aged IPACs, corrective action taken and the percentage of aged items.

(2) The IPAC Log sheet, Corrective Action Worksheet and Percentage Worksheet are required by CFO.

(3) These reports are due to CFO HQ Accounting by 1:00 PM local time on the third business day of the month.

(4) The reports analyst receives all copies of this report with documentation for review.

(1) This account is required to reflect a zero balance and is due to CFO HQ Accounting by 1:00 PM local time on the third business day of the month.

(2) The reports analyst receives all copies of this report with documentation for review.

(1) Verify all required documentation is present and completed accurately.

(2) For 20F3885 report: Follow up as needed with RACS to verify corrective action has been taken to resolve any items aged over 30 days.

(1) This report will show the fiscal year-to-date cumulative balance in each general ledger account and the general ledger classification totals.

(2) The reports analyst should request a copy of the M Trial from the RACS DBA monthly.

(3) An asterisk will appear next to an account in reverse balance status. An account in reverse status must be expeditiously resolved.

(4) The reports analyst will review and sign the Reverse Status Report prior to submission to CFO and CFO HQ RACS analyst. A Reverse Status Report explains the reverse status condition and must be sent by email or faxed to CFO and the CFO HQ RACS analyst no later than the fourth workday of the new month.

(5) The Reverse Status Report should indicate in the header "Attachment for M Trial", the month it is for and the name of the campus.

(6) This report should include:

• Every account that is in reverse status

• A clear and detailed explanation

• Money amount(s)

• Other information that will help identify the item(s) such as, Doc Ids, cycle, etc.

  Note: If the reverse status was caused by many items, then list the total amount with the explanation.

• If there is more than one explanation for one account, list them separately with the appropriate money amount for each.

• How long this particular item(s) has caused this reverse status and what action has been taken to fix the problem.

(7) The monthly General Ledger Trial Balance must be certified as to its correctness and the certified copy should be kept in the campus' GAO file. The authority for certification of this report can be designated by the CFO Department Manager.

(1) This receivable account will be used to record and control amounts on NMF accounts while in the process of manual transfer to other campuses. NMF account amounts will be posted to this account when Form 514-B is prepared. Amounts will be closed from the account upon receipt of the receiving campus' acknowledgement of account transfer on Form 514-B, part 2.

(2) External subsidiary record is the pending file of Form 514-B.

(1) This receivable account will be used to record amounts of receivables other than taxes collectible. This account represents receivables which have not been collected, assessed or written-off as uncollectible. Account 1510 will be supported by copies of bills, debit voucher or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness.

(2) This account will also be used to clear unresolved debit items from the Service Center Control file (SCCF) and unprocessable debits from the DCF. This account will be supported by case history files recording approval of the SPC director to remove them from the SCCF. These items will be supported by Form 3809 for non-revenue receipt items and Form 2424 for revenue receipt items.

(3) Items referenced in (1) and (2) remaining in this account after the statutory period for assessment has expired will be transferred to Account 1840. The statutory period for assessment on unresolved debits from the SCCF will be considered to have expired when the general assessment statute period has expired.

(4) External subsidiary is the file of paper documents used as described above.

(1) This receivable account is used to record erroneous refund receivables that result in a court case. Account 1530 will be supported by:

• Court documents, copies of bills, IDRS Letter 510C and TIGTA reports, debit vouchers or other documents showing the name of each debtor, amounts receivable and details of the transaction creating the indebtedness.

(2) Employee fraud cases are controlled in Account 1530. Access should be limited.

(3) Transfer case to Account 4910, Disbursement Loss, when the case is determined uncollectible. Documentation will explain why the case is uncollectible.

(4) The external subsidiary for this account is the file of paper documents described in (1) above.

(1) This receivable account is used to record erroneous refund receivables that result in a court case.

(2) Account 1535 will be supported by:

• Form 3809 Documents

• Backup Documentation such as IDRS Print reflecting Erroneous Refund or a copy of a payment voucher received from CI in Ogden. CI will maintain the original case file.

(1) This receivable account is used to record erroneous refund receivables that are not court cases. This account represents erroneous refund receivables that have not been collected, resulted in a court case, assessed or determined uncollectible. Account 1540 will be supported by:

• Copies of bills

• IDRS Letter 510C or Letter 4728C

• Debit vouchers

• Other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness

(2) Cases are transferred to Account 1530 when it is determined that the case is going to court.

(3) Cases are transferred to Account 4910, Disbursement Loss when the statute expires.

(4) A case determined to be uncollectible before the statue expiration will be transferred to Account 4910, Disbursement Loss. Documentation will explain why the account is uncollectible.

(5) The external subsidiary for this account is the file of paper documentation described in (1) above.

(1) This receivable account will be used to record erroneous refund receivables that are NOT court cases. This account represents erroneous refund receivables that have NOT resulted in court cases nor have been collected, assessed or determined uncollectible. Account 1543 is supported by copies of bills, Letter 510C, debit vouchers or other documents showing the name of each debtor, amount receivable and details of the transaction creating the indebtedness. Other possible supporting documentation may be Bureau of Fiscal Service Form 3858 (Claims Document and Form 1133 (Claim Against the United States for the Proceeds of a Government Check). This supporting information will be kept in the case file in the Erroneous Refund function.

(2) When setting up the case on RRACS, use the TC 700 transaction date on Form 3809. This transaction date is the date of the erroneous refund (TC 840/846). Form 3809 should be stapled to the left side of the folder with the most current one on top and with a journal number clearly printed on each form.

(3) Refer to IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations, for additional information on processing POC accounts.

(4) The external subsidiary record for this account is the file of paper documents described above. For maintaining cases in this account refer to IRM 3.17.80.1.22, Maintaining Case Files.

(1) This receivable account will be used to record identity theft erroneous refunds. This account represents identity theft erroneous refund receivables which are uncollectible. Account 1545 will be supported by Form 3809, IDRS prints or other documents showing the name of each debtor, amounts receivable and details of the transaction creating the indebtedness. This supporting information will be kept in the case file in the Erroneous Refund function.

(2) Beginning January 15, 2014, cases that are opened via new IDRS command codes IDT 48 or IDT 58 will be supported by EOD1640, EOD 1622 and Batch posting 171 report. This account is not under director's accountability.

(3) The systemic processing will produce a daily automated Batch Journal 171 to RRACS which will debit account 1545 and credit account 4220. The EOD 1640 will produce the summary (amounts and volumes) of the transactions and a new report EOD 1622, which lists the detailed information (taxpayer identification) of each transaction, will also be available on Control D. See IRM 3.17.64.16.2, Identity Theft Erroneous Refunds Monthly Activity Report (RRACS Report 155A), for procedures used to balance the GL 1545.

(4) Refer to IRM 3.17.64.16.2, Identity Theft Erroneous Refunds Monthly Activity Report (RRACS Report 155A), for monthly balancing procedures.

(5) Refer to IRM 3.17.243, Miscellaneous Accounting, for resolution of failed IDRS transactions referred to as “unpostables”.

(6) Refer to IRM 3.17.64.16.11, Identify Theft Erroneous Refund Systemic Write-Offs, for write-off procedures.

(7) The external subsidiary record for this account is the Form 3809 or EOD 1640, EOD 1622 and Batch posting 171 report.

(1) This receivable account will be used to record return preparer misconduct erroneous refunds effective July 1 ,2015. This account represents return preparer misconduct erroneous refund receivables which are uncollectible. Account 1547 will be supported by Form 3809 (CSC ONLY).

(2) Beginning July 1, 2015, cases that are opened via new IDRS command codes RPM 48 or RPM 58 will be supported by EOD 1640, EOD 1624 and Batch posting 172 report. This account is not under director's accountability.

(3) The systemic processing will produce a daily automated Batch Journal 172 to RRACS which will debit account 1547 and credit SCCF. The EOD 1640 will produce the summary (amounts and volumes) of the transactions and a new report EOD 1624, which lists the detailed information (taxpayer identification) of each transaction, will also be available on Control D. See IRM 3.17.64.16.3, Return Preparer Misconduct Erroneous Refund Inventory Report (RRACS Report 0157), for procedures used to balance the GL 1547.

(4) The external subsidiary record for this account is the Form 3809 (CSC ONLY) EOD 1640, EOD 1624 and Batch posting 172 report.

(1) The unpaid balance of manual assessments may be established in the manual Assessments, Transit Account.

(2) Assessments manually prepared may be transferred from Account 1600 to NMF, BMF, IMF or Individual Retirement Account (IRA) in accordance with schedules established by the individual SPC.

(3) External subsidiary is a file of new documents pending transfers to NMF, BMF, IMF or IRA.

(1) This receivable account will be used to record the amounts of unresolved items for which the statutory period of assessments has expired.

(2) Items in this account will be transferred from Account 1510. These case history files will be supported by approval of the SPC director.

(3) Items may also be transferred from Account 4810. These case files will be supported by administrative approval delegated no lower than chief, Accounting Operations. Items in this account will be closed to Account 6600, Accounts Cleared Statute, ten years from the date of the deposit ticket/debit voucher.

(4) Case files will be reviewed at least once yearly to determine the accounts on which the Statute for Collection has expired.

(5) Upon expiration of Statute for Collection, items in this account will be closed to the Accounts Cleared, Statute Account 6600.

(6) External subsidiary is the case history files.

(1) This receipt account represents monies collected and placed in the Treasury General Fund Account. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A. The SPC director is personally accountable for these funds until deposits into the Treasury Account are confirmed.

(2) Included in this account are monies for Treasury Account Symbols 20–2411 (User Fees).

(3) This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

(4) Account is maintained on a fiscal year basis.

(1) Included in this receipt account are monies for the EO User Fee Increase and the Form 990 CD User Fee. The EO User Fee increase and Form 990 CD User Fee are processed in Ogden. These monies are reported under Treasury Account Symbol 20X5432.5.

(1) This receipt account represents monies collected and placed in the Treasury General Fund accounts. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A. The SPC director is personally accountable for these funds until deposits into the Treasury Account are confirmed.

(2) Included in this account are monies for treasury Account Symbols 20X5080.1 (Voluntary Contribution to reduce the National Debt).

(3) This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

(4) This account is maintained on a fiscal year basis.

(1) This receipt account represents monies collected for court ordered restitution of fines, penalties and court costs. This also includes court ordered restitution in excess of assessable amount. These payments should be received with instructions from the originator that these payments fall into one of these categories. These monies are reported under Treasury Account Symbol 20–3220.

(1) This receipt account represents monies collected and placed in the Treasury General Fund Accounts. Collections may be cash, check or money order applicable to this General Fund Account. Receipts are recorded in this account upon preparation of Deposit Ticket, SF 215A.

(2) The SPC director is personally accountable for these funds until deposits into the Treasury Account are confirmed.

(3) Included in this account are monies for Treasury Account symbols 20–1210 (Conscience Fund).

(4) This account can be reduced only through adjustment between the Funds or Revenue Receipt accounts as all SF 5515's normally are applied to the Revenue Receipts Withholding Class.

(5) Account is maintained on a fiscal year.

(1) This liability account will be used to record advance payments voluntarily made by taxpayers in anticipation of deficiency or additional assessments of all classes of tax and advance payments (including cash bonds) in pre-refund audit cases. The balance on this account represents all such payments which have not been assessed, applied to taxpayer accounts, refunded or transferred to other offices.

(2) Account 4610 will be supported by subsidiary records established to identify the taxpayer, amount of advanced payment and subsequent assessment application, refund, or transfer of the collection.

(1) This liability account is used to hold and control amounts received with Offers-in-Compromise, while the offer is being processed. Monies recorded in this account are Deposit Fund amounts deposited under Treasury Symbol 20X6879.

(2) Deposit Fund monies may be reclassified to revenue receipts and applied to taxpayer accounts, refunded upon rejection or withdrawal of the offer, or transferred to another SPC on Form 2158. Transfers will be reclassified by the receiving SPC.

(3) This account is supported by individual records within the Data Base. Application, refund, or transfer must not exceed the credit available in the individual record. The external subsidiary file is the Record of Offer-in-Compromise, Form 2515 or 4710–CG.

(1) This liability account is used to hold and control amounts received as proceeds from the sales of seized property until proper distribution documents are completed by the collection functions.

(2) Deposit Fund monies may be reclassified to revenue receipts and applied to an outstanding tax liability refunded to taxpayer when amount is over the tax liability or transferred to another SPC on Form 2158. Transfers of Deposit Fund amounts will be reclassified by the receiving campus.

(3) This account is supported by individual records in the RRACS Data Base. Application, refund or transfer must not exceed the credit available in the individual record. The external subsidiary file is the Deposit Fund Record, Property Sales and Deposits, Form 1983.

(1) This liability account is used to hold and control miscellaneous deposit fund amounts. Included in this account will be amounts requested held by CI when related to an on-going investigation and other specific transactions authorized by HQ.

(2) Deposit fund monies may be reclassified to revenue receipts and applied to outstanding tax liabilities or assessments, refunded to taxpayers when amount is in excess of liability or transferred to another campus on Form 2158.

(3) This account is supported by individual records in RRACS. Application, refund or transfer must not exceed the credits available in the individual records.

(1) This liability account provides internal control for disbursement losses (unrecoverable erroneous refunds). Cases will be maintained in this account while relief for the accountable officer is requested.

(2) A case will be transferred from Account 1530 when the case is determined to be uncollectible. Documentation will explain why the case is determined uncollectible.

(3) A case will be transferred from Account 1540 when the case is determined to be uncollectible or the statute expires. Documentation will explain why the case is determined uncollectible.

(4) The case documentation will be used to support the relief request.

(5) If a taxpayer makes a payment while in Account 4910, then credit Account 4910 and debit SCCF account.

(6) When relief is granted, Account 6920, Disbursement Write-Off, will be debited and Account 4910 will be credited to provide relief.

(1) This liability account is used to record and control canceled refund checks prior to research for proper application. The items included in this account are only those checks generated manually or through IDRS, which cannot be input by the disbursing office directly to the Master File.

(2) This account is used to control refund (45 document code) items that are received due to mismatch of money amounts. Resolution of these items may require contact with the RFC and Fiscal Service. Discrepancies under $5.00 will be resolved using Account 6540, Small Debit and Credits Cleared.

(3) If any items cannot be resolved through research and have been in the account for over two years, follow-up contact with RFC and Fiscal Service, administrative action may be requested. Administrative approval to charge Unapplied Refund Reversal credit amounts to Account 6800, Excess Collections and charge debit items to Account 1840, Other Receivables, may be granted. Authority for approving such action may not be delegated below operations level. All cases should be fully documented regarding research performed, destruction of records, contacts, related correspondence, etc. to ascertain that resolution is no longer possible.

(4) This account is used to control Limited Pay Cancellations received via IPACD or IPACR until the tapes are processed at ECC-MTB or manual documents are prepared. Individual records will be maintained for each IPAC Document.

(5) Items placed in this account will be subject to expedite research to determine proper application and will be transferred to the proper taxpayers account upon identification.

(6) Refunds and cancellations transferred from this account to a miscellaneous fund must be reclassified.

(7) The external subsidiary file documents are Forms 3809 associated with Forms 1098, Form 3245 and IPAC Treasury Receivable, Accounting and Collection System (TRACS).

(1) This account is used to record and control unapplied external leads prior to research for proper application.

(2) The items included in this account also include unapplied external leads which cannot be applied directly to MF.

(3) The external subsidiary file documents are Form 3809s.

(4) For processing procedures refer to IRM 3.17.64.17, External Leads Processing (ELP) Ogden and Kansas City CFO RACS Only.

(1) This liability account is used to control unapplied lockbox items from the DOJ until research can be accomplished to determine appropriate application or reversal to DOJ. The lockbox accounts will be maintained in an external subsidiary file, consisting of a copy of the listings, cross referenced with the applicable journal number. As each item is identified and applied, the supporting subsidiary document should be annotated and the remaining balance corrected to assist in the monthly reconciliation.

(2) Items placed in this account will be subject to expedite research to determine proper application and will be transferred to the proper taxpayers account upon identification.

(3) If any items cannot be resolved through research and follow-up with DOJ and have been in the account for over two years, administrative action may be requested. All cases should be fully documented regarding research performed, destruction of records, contacts, related correspondence, etc. to ascertain that resolution is no longer possible. Once approval has been granted these items will be transferred to Account 6800, Excess Collections. Authority for approving such action may not be delegated below Operation level.

(1) This account is used to record and control IPACR receipts prior to research for proper application.

(2) Items not identified in Accounts 4970 and 4975 will be included in this account.

(1) This account records the liability for fees and services rendered. The following fees will be recorded in Account 6310:

• 2320 Duplication of Exempt Organization Master File (EOMF) Documents

• 2330 EP/EO User Fee

• 2335 EP/EO User Fee Increase (CSPC)

• 2340 Photocopy Fee (Current Year)

• 2395 OIC User Fee

• 2342 Photocopy Fee (Prior Year)

(2) The six individual accounts mentioned above must be balanced and maintained separately within Account 6310.

(1) This account is used to record the amount of collections received as a result of judgments for fines, penalties, or court costs asserted by federal courts incident to evasion of payment of taxes, offers accepted in lieu of such liabilities and other non- assessable specific penalty offers.

(2) This account is also used to record miscellaneous collections that are not assessable on the taxpayers account.

(3) This account is used to record all monies/revenue collected for:

• Account 2310 - Treaty Country Receipts (20–3220)

• Account 2320 - Miscellaneous receipts not attributable to fees or assessed tax, penalty and interest (20–3220)

• Account 2325 - Miscellaneous Forfeiture Receipt (20–1099)

• Account 2345 - Presidential Election Campaign (20X5081.1)

• Account 2350 - Public Debt (20X5081.1)

• Account 2355 - Federal Court Ordered Restitution for Costs and Penalties (20–3220)

• Account 2360 - Conscience Fund (20–1210)

• Account 2365 - LIFO Payments, Rev Proc 97- 44 Settlement Payments (20–3220)

• Account 2370 - Mortgage Subsidy Bond Receipt (20–3220)

(4) The nine individual accounts mentioned above must be balanced and maintained separately, within Account 6400.

(1) Amounts of over-assessments (abatements) of previously-assessed tax, penalty and interest certified and credited to taxpayer accounts are recorded in this account. The account represents the total over-assessments of tax, penalty and interest credited to taxpayer accounts during the year. Entries to this account are obtained from the SC Recaps (abatement total). They are further supported by file copies of Form 2188.

(2) This account is also used for reversals of erroneous abatements. These entries are obtained from the Form 2188 and Form 3465.

(3) This account is also used to journal reactivation of erroneous abatements when the original abatement has been written off in a prior fiscal year.

(4) External subsidiary record is the file of Form 2188s.

(1) The monies posted to this account are indicative of the processing which allows a refund cancellation credit (TC 841) to post to a taxpayer's account when a refund was issued, but never negotiated by the taxpayer.

(2) IRS is legally obligated to re-credit the taxpayer's account for the amount of the check if Fiscal Service either cannot return a credit to IRS under the terms of the competitive equality Banking Act of 1987 (Limited Pay-ability) or has returned a credit where the IRS cannot locate the credit.

(3) External subsidiary record is the file of paper documents used as described above.

(1) This account is used to record charges by the depository banks, or by the cash division of the Treasurer's office, for processing foreign checks and other miscellaneous fees, including encoding error charges. These charges will normally be made on SF 5515.

(2) External subsidiary record is the case file.

(1) This account is used to record and control expired external leads after research for proper application. The items included in this account are only those expired external leads which cannot be applied directly to MF.

(2) If any items over two years from the deposit date cannot be resolved through research and follow-up with IVO-external leads, prepare Form 3809 to Debit 4971 and Credit 6801 for the remaining amount for each Doc ID (DT Number) in Account 4971.

(3) The external subsidiary file documents are Form 3809s transferring monies from Account 4971 to Account 6801.

(1) This account provides internal control for identity theft disbursement losses.

(2) When write-off approval is granted, this account will be debited to provide credit to Account 1545, Identity Theft Erroneous Refunds. Cases will be maintained in this account after write-off approval until fiscal year-end. For additional information see IRM 3.17.64.16.11, Identity Theft Erroneous Refund Systemic Write-Offs.

(3) IDT write-offs became systemic effective February 2019 and will be performed through a RRACS batch journal by the 12th workday of the month. The batch journal number will be a 174 and will include the Doc-ID. This will credit account 1545 and debit account 6905.

1. The RRACS report 155D, Matched IDT Erroneous Refund Write Offs, will list all matched write off items.

2. The RRACS report 155E, Unmatched IDT Erroneous Refund Write Offs will list all unmatched write off items.

(4) The RRACS Report 155D and 155E will be placed in the SPC Main Menu/Miscellaneous and can be printed.

(1) This account provides internal control for return preparer misconduct disbursement losses and was effective on July 1, 2015.

(2) RPM write-off is systemic and will be done through a RRACS batch journal. The batch journal number will be 173 and will include the doc-id. This will credit the 1547 account and debit the 6907.

(1) This account provides internal control and accountability for disbursement losses.

(2) When relief is granted, this account will be debited to provide credit to Account 4910, Disbursement Loss.

(3) This account should remain in the accounting area for two years, then send to Records Storage with a destroy date of six years, three months after the period of the account as outlined in Document 12990. To locate this information, open the attached link and select the Current revision date.  Then refer to the information in the table below:

(1) Each year the Appropriations Act for the Department of Justice (DOJ) authorizes DOJ to retain 3% of all amounts collected pursuant to the DOJ's civil debt collection litigation activities.

(2) Account 6950 is used to record and journal the 3% amount retained by DOJ.

(3) Forms 3809 are the external subsidiary.

(1) The following are the three Losses and Shortages accounts:

• Account 7610 - Embezzlement, Thefts and Negligence

• Account 7620 - Unexplained Losses

• Account 7650 - Deposit Discrepancies

(2) These accounts are supported by individual records in the Losses and Shortage file within RRACS. Each individual record requires its own Doc ID. Unless known to be otherwise, tax class will always be 2.

(3) Source documents related to the losses and shortages are:

• Form 3244

• Memorandum granting relief for losses or shortages other than by payment

• Memorandum or letters stating losses or shortages

• Form 2424

• Form 813

• Form 215

• Form 5515

(4) Effective July 15, 2013, a new RRACS 0576 Report titled Electronic Check Processing (ECP) Deposit Discrepancy Support List is available. This monthly report includes all open ECP (Lockbox) Deposit Discrepancies. The total money amount must equal the open case files.

(1) This asset account is used to record cash shortages of collections, losses from robbery or theft, embezzlement of collections and counterfeit bills. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

(2) This account is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files may include, but not exclusively:

• TIGTA memorandum

• TIGTA report of investigation (ROI)

• Copy of document transferring credit to the injured taxpayer's account

• Transcript of injured taxpayer's account showing the credit from Account 7610

• Copy of the preliminary report and any supplemental reports

• Copy of the internal controls in place at the time of the loss

• Any internal control changes

• Copy of court documents

• A list of any payments made or offsets

• History of contacts with TIGTA, Court, Department of Labor, Kansas City DOJ lockbox and any other areas/agencies

• Internal Revenue Code (IRC) Section 7804(c) assessment documents (non-court case)

(3) The reports analyst must review this account to ensure case files have required supporting document and updated history sheets.

(1) This asset account is used to record unexplained losses. An unexplained loss is an apparent deposit discrepancy that cannot be collected under the Federal Claims Collection Act (FCCA). When the Service cannot establish the bank's liability for a deposit discrepancy, the loss is considered unexplained. Unexplained losses of $10,000 or more require Treasury's approval.

(2) This account is supported by case history files covering the details of each recorded collection loss or shortage. Case history files may include:

• Copies of the debit voucher

• Copy of the deposit ticket

• Copy of Form 813

• Correspondence to/from depository

• Correspondence to/from bank

• Copy of taxpayer's check (front/back)

• Transcript of the taxpayer's account

• Historical record of attempts to resolve the discrepancy

(3) This account is included as an accountability for the list of accountable officers found in IRM 3.0.167-1, List of Accountable Officers.

(4) The reports analyst must review this account to ensure case files are complete with required supporting documentation and updated history sheets.

(1) This asset account is used to record amounts of deposit discrepancies which are discovered by the depositories. This account may also be used when the Payment Tracer function has unresolved encoding errors, where extensive research has been completed and the credit cannot be located. These items are considered true deposit shortages for accountability purposes. The balance in this account represents the total amount of such losses or shortages for which restitution or reimbursement may be obtained, or for which relief may be granted.

(2) Account 7650 is supported by reports and case history files covering the details of each recorded collection loss or shortage. Case history files may include:

• Copy of the debit voucher

• Copy of the Deposit ticket

• Copy of Form 813

• Correspondence to/from depository

• Correspondence to/from bank

• Copy of taxpayer's check (front/back)

• Transcript of the taxpayer's account

• Historical record of attempts to resolve the discrepancy

(3) This account is included in the accountability of the accountable officer.

(4) Review Account 7650 monthly to make sure bank contact is timely and identify discrepancies that require relief. Unresolved cases over $1,500 are forwarded to Counsel for a recommendation to file suit or stop collection action against the depository. If Counsel recommends termination of collection action, administrative resolution under Delegation Order 1–25, Termination of Collection Action against Federal Depositaries or the DOJ is requested.

(1) Reviewing the NMF accounts

• Perform trend analysis on various reports retained from both Automated Non-Master File (ANMF) and RRACS system.

• Analyze and identify problem areas and/or procedural issues.

• Ensure NMF accounts are balanced monthly with the General Ledger Accounts.

• Perform periodic reviews on documents posting to ANMF: Abatements, manual refunds, closing agreements, Form 2424 and Form 3809.

• Review the above documents for timeliness of receipt and input.

• Ensure IRM 3.17.46, Automated Non-Master File Accounting, procedures are being followed.

• Perform written quarterly reviews for manager and include recommendations to resolve issues.

(2) A training course is now available in ITM for ANMF. This item is informational only.

• ITM 10740 Processing Non-Master File Accounts

1. New hires must take this training within 30 days of reporting to the team.

2. Refresher training should be taken as needed at management’s discretion.

(1) SF 224 Timely Submission

• Green - Submission made by 11:00 AM local time on second business day.

• Yellow - Submission made from 11:01 AM to 1:00 PM local time on second business day.

• Red - Submission made after 1:00 PM local time of the second business day.

(2) Potential 224 Problem

• Posting occurring after SF 224 generation in RRACS.

• Requests for the SF 224 Supplemental Report.

• Systemic problems (Yellow and Red criteria do not apply).

• Password problems.

• Failing to verify computer connections to CARS.

• Failing to ensure the CARS users are certified.

(3) SF 224 Completeness

• Green - All RRACS transactions reported.

• Yellow - Partial RRACS transactions reported.

• Red - No RRACS transactions reported.

(4) SF 224 Accuracy

• Green - All RRACS transactions accurate.

• Yellow - Partial RRACS transactions accurate.

• Red - No RRACS transactions accurate.

(1) SF 224 Supplemental Timely Submission

• Green - Submission made by 1:00 PM local time on third business day.

• Yellow - Submission made from 1:01 PM to 3:00 PM local time on third business day.

• Red - Submission made after 3:00 PM local time on the third business day.

(2) Potential SF 224 Supplemental Problems

• Posting occurring after SF 224 generation in RRACS.

• Systemic problems (Yellow and Red criteria do not apply).

• Password problems.

• Failing to verify computer connections to CARS.

• Failing to ensure the CARS users are certified.

(3) SF 224 Supplemental Completeness

• Green - All transactions completed.

• Yellow - Partial transaction completed.

• Red - No transactions or journals completed.

(1) On Time Submission:

• Green - Reconciliation completes in three workdays after the 119 journal posts to RRACS.

• Yellow - Reconciliation completes in four or five workdays after the 119 journal posts to RRACS.

• Red - Reconciliation completes in six workdays after the 119 journal posts to RRACS.

(2) Statement of Difference - Completeness

• Green - All columns of information provided and accurate.

• Yellow - Missing details or errors on five or less rows of differences.

• Red - Missing details or errors on more than five rows of differences.

(3) Statement of Difference - Supporting Documentation

• Green - Supporting backup for all the required three audit months or older differences. Supporting backup for all disbursement items.

• Yellow - Supporting backup missing for up to two items. (backup documentation required for deposit items with audit month three months or older and all items in disbursements.

• Red - Missing supporting backup for more than two items (backup documentation required for deposit items with audit month three months or older and all items in disbursements.

(4) Statement of Difference - Balancing

• Green - Report balances between RRACS and CARS.

• Yellow - One audit month total does not balance between CARS and RRACS.

• Red - More than one audit month total does not balance between CARS and RRACS.

(5) Statement of Difference - Aged Items

• Green - No aged items on the report containing a confirm date more than three months old.

• Yellow - Aged items with confirm date of four to five months old.

• Red - Report contains confirm date greater than five months old.

(1) 3997 - Timeliness

• Green - Received on or before the 25th of the month.

• Yellow - Received after the 25th but within two business days..

• Red - Received after two business days.

(2) 3997 - Completeness and Accuracy

• Green -Complete and accurate information provided for all columns.

• Yellow -Incomplete and/or inaccurate information on two or less items.

• Red -Incomplete and/or inaccurate information on more than two items.

(3) 3997 - Supporting Documentation

• Green -Supporting backup for all aged reconciled and unreconciled items.

• Yellow -Supporting backup for aged reconciled and unreconciled items except for one item.

• Red -No supporting backup for aged reconciled and unreconciled items or more than one item missing.

(4) 3997 - Signature

• Green -All parties Signed.

• Yellow -No yellow option available.

• Red -Not all parties signed.

(5) 3997 - Aged Reconciled Items

• Green - No aged reconciled item(s).

• Yellow - One or more aged reconciled item(s) reported for the first time.

• Red - One or more aged reconciled item(s) reported two or more consecutive accounting periods.

(6) 3997 - Unreconciled Items

• Green - No unreconciled item(s) or unreconciled item(s) reported for the first time.

• Yellow - One or more unreconciled item(s) reported for the first time.

• Red - One or more unreconciled item(s) reported for two or more consecutive accounting periods.

(1) Timeliness

• Green - The IPAC Log sheet for suspense account 20F3885 received by 1:00 PM local time on the third business day of the following month.

• Red - The IPAC Log sheet for suspense account 20F3885 is received after 1:00 PM local time on the third business day of the following month.

(2) IPAC Aged Items

• Green – 30 days or less in suspense.

• Yellow – 31 to 45 days in suspense. (Accounting Operations will be contacted.)

• Red – 46 to 60 days in suspense. (campus director will be contacted.)

Note: If over 60 days, a red score will be given and the Director of Revenue Accounting Operations will also be contacted.

(3) Supporting Documentation

• Green – Corrective Action Log sheet is received to support items over 45 days old on the IPAC Log sheet.

• Red – Corrective Action Log sheet is not received to support items over 45 days old on the IPAC Log sheet.

(4) Signature

• Green – All signatures present on IPAC Log Sheet and Corrective Action Log sheet.

• Red – Missing signature(s) on either IPAC Log Sheet or Corrective Action Log sheet.

(1) Suspense Account 20F3885 - Timeliness

• Green - The Suspense Account Percentage Worksheet is received by 1:00 PM local time on the third business day of the following month.

• Red – The Suspense Account Percentage Worksheet is received after 1:00 PM local time on the third business of the following month.

(2) Suspense Account 20F3885 - Worksheet

• Green – 5% or less

• Yellow – 6% to 9%

• Red – 10% or more

(3) Suspense Account 20F3885 - Signature

• Green – All signatures present on the Suspense Account Percentage Worksheet.

• Red – Signature(s) missing on the Suspense Account Percentage Worksheet.

(1) Timeliness

• Green – Submitted worksheet by 1:00 PM local time on the third business day of the month.

• Red – Submitted worksheet after 1:00 PM local time on the third business day of the month.

(2) Suspense Account 20F3500 and 20F3502 - Efficiency

• Green – Zero amount within current month.

• Red – A penny or more within current month.

(3) Suspense Account 20F3500 and 20F3502 - Supporting Documentation

• Green – Supporting documentation received.

• Red – Missing supporting documentation.

(4) Suspense Account 20F3500 and 20F3502 - Signature

• Green – Suspense 20F3502 spreadsheet is signed by RACS manager.

• Red – Suspense 20F3502 spreadsheet is not signed by the RACS manager.

(1) Timeliness

• Green - Informant Reward Balance is received by 1:00 PM local time on the third business day of the following month.

• Red - Informant Reward Balance is not received by 1:00 PM local time on the third business day of the following month.

(2) Efficiency

• Green - CARS balance of the Informant Reward account is a positive or zero amount.

• Red - CARS balance of Informant Reward account is negative amount.

(3) RACS Manager Signature

• Green - CARS balance of Informant Reward account statement is signed by the RACS manager.

• Red - CARS balance of Informant Reward statement is not signed by the RACS manager.