3.17.79. Accounting Refund Transactions

(1) This IRM describes procedures used by Submission Processing Center, Accounting Operations, to process refund approval documentation, prepare refund schedules and issue related information documents.

(1) IRC 6402, Authority to make credits or refunds.

(1) The Submission Processing Accounting Operation is responsible for processing refund approval documentation, preparing refund schedules, and issue related information documents.

(1) Managers are responsible for ensuring that internal controls are effective an efficient and to safeguard against waste, fraud, and abuse.

(2) Managers are responsible for conducting reviews of refunds to ensure accuracy, completeness, and mitigate known risks. Problems identified must be discussed with the appropriate functional area for corrective action.

(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 provide:

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, property and other assets which the agency is responsible, including appropriate internal audit.

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 required by the President or other designated authority.

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.

(1) Abatement: A reduction of an assessment of tax, penalty or interest.

(2) Agency Location Code (ALC): The ALC is a number assigned by Treasury's Bureau of the Fiscal Service designating the agency identification to account for government payments. The ALC identifies the issuing agency and allows recordation for Treasury of the return of credits and debits for accounting transactions. For example:

(3) Assessment: The recordation of a tax liability determined by either the Service or the taxpayer.

(4) Automated Non-Master File (ANMF): Subsidiary records of taxpayer accounts established and maintained at the Kansas City Submission Processing Center.

(5) Automated Non-Master File (ANMF) Transcript: A NMF record of all transactions related to a tax liability, maintained at the Kansas City Submission Processing Center.

(6) Customer Account Data Engine (CADE): Beginning in January 2012 with CADE 2 deployment, IMF processes and posts individual taxpayer submissions daily. Only accounts and transactions that have met specific criteria will be processed and posted daily. The remaining accounts and transactions will re-sequence until the end of the cycle and reflect as a weekly account.

• With the implementation of CADE 2, the cycle cut off for the week’s processing is Wednesday night for all Master Files. This allows all Master Files (IMF-Individual Master File, BMF-Business Master File, etc.) to be processed by IDRS (Individual Data Retrieval System) weekend analysis one week earlier.

• IMF Daily posted transactions will be updated and available for viewing on CFOL (Corporate Files Online) by 6 a.m. the next business day after IMF processing and available on IDRS by 6 a.m. the following business day providing posted information sooner.

(7) Checks:

1. Recertification - Effective October 26, 1986, the Department of the Treasury (BFS) delegated to administrative agencies full responsibility for certifying replacement payments to payees who claim non-receipt, lost, stolen, mutilated or destroyed checks. This procedure is known as Recertification. the Service authorizes the re-issuance of a check under Recertification.

2. Settlement Check - A check issued by BFS Check Claims Branch prior to October 26, 1986, and more recently in 2002 and 2003 when non-receipt claims were determined to be forged. Settlement checks are issued by BFS from the Check Forgery Insurance Fund to replace an original check cashed by an individual other than the taxpayer, the payee. The check number and symbol of the settlement check are different from those on the original check. The recent settlement checks overlay the original check issue symbol and serial requiring in-depth research by BFS for resolving cases.

3. Substitute Check - A check issued by Check Claims Group (CCG) to replace an original check still outstanding. Substitute checks were also referred to as duplicate checks and were issued from the Washington Regional Finance Center (RFC). The substitute check has the same check number and symbol of the original. Substitute checks are not issued under Recertification.

4. Recertified Check - A check certified for re-issuance by the Agency, after October 26, 1986, to replace an original check still outstanding. The result of a non-receipt claim submitted by tape input or Standard Form (SF) 1184, Unavailable Check Cancellation.

5. Altered Check - A check that is changed (defaced) before cashing (for example, the refund amount printed on the check is changed).

6. Unavailable Check Cancellation Credit - Credit returned to the ALC from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9."

7. Available Check Cancellation Credit (ACC)- Credit(s) returned to the Service from an intercepted refund check (Reason for Return Code "1"), undeliverable refund check (Reason for Return Code "2") or other reasons not identified above (Reason for Return Code "3").

8. Unavailable Check Cancellation (UCC)- credits are returned to the Service via Standard Form (SF)1098, Schedule of Cancelled or Undelivered Checks, cancellations from a non-receipt claim and it is determined the check is still outstanding. These credits are identified by a Reason for Return Code "9".

(8) Erroneous refunds Category A1, A2, B, and C erroneous refunds are assessable refunds under the Internal Revenue Code (IRC). These erroneous refunds require recalculation of the tax liability, including refundable credits and non-refundable credits. Category A1 and A2 refunds are sent to Examination for deficiency processing. Category B and C can be assessed by any IRS function. Unassessed erroneous refunds (formerly Non-Rebate): are unassessable refunds that cannot be recovered by tax assessment procedures under the IRC. These refunds are currently categorized as "Category D" erroneous refunds. These funds can only be recovered by limited actions performed by Submission Processing. See IRM 21.4.5, for erroneous refund types, categories and recovery processing procedures.

(9) Bureau of the Fiscal Service (BFS): BFS is within the Department of the Treasury. The Bureau of the Fiscal Service (BFS) issue and process claims on most U.S. Government checks, including all IRS tax refund checks. Because of the role of BFS in issuing and cancelling refund checks, most Refund Activity processing involves a great deal of interaction with BFS. Accounting documentation via Form (SF) 1098, Schedule of Canceled or Undelivered Checks, and Form 1081, Voucher and Schedule of Withdrawals and Credits, for credits and debits are transmitted by BFS to ECC Submission Processing Centers download Accounting disbursement and cancellation credits and debit documentation via the ECC, Control-D.

(10) Financial Processing Division: formerly Adjudication Division, a division of BFS, processes non-receipt claims (from Form 3911, Taxpayer Statement Regarding Refund, and CC CHKCL) FMS Form 1133, Refund Inquiry, to determine if the taxpayer benefited from the proceeds of the refund. If the taxpayer did not benefit from the refund, BFS authorizes IRS to settle with the taxpayer (issue another refund). Administrative action is taken by BFS through the banking system to recover funds from the bank that are paid over forged endorsements.

(11) Heads of Office: the management official who presides over a particular Business Operating Division; e.g., Area Director, Field Director, Commissioner, Assistant Commissioner, or other functional equivalents at the Area, National levels. Only those individuals would be accountable for any necessary corrective actions when errors occur in processing cases. Field offices will provide authorized signatures to appropriate Submission Processing Center, Manual Refund function.

(12) Integrated Data Retrieval System (IDRS): A computer system with the capability to instantaneously retrieve or update stored information in harmony with the Master File of taxpayer accounts. This system is aimed at a quick resolution of problems and queries concerning current taxpayer accounts. It furnishes information immediately for IRS personnel in their work assignments.

(13) Integrated Submission and Remittance Processing (ISRP): is used for inputting document transactions and remittances.

(14) Journalization: The process of debiting and crediting General Ledger accounts. Every tax transaction involving money must be journalized to maintain account control.

(15) Julian Date: A system of numbering the days of the year from 001 through 365 (or 366). The 6th, 7th, and 8th digits of the DLN are the Julian date.

(16) Limited Payability (LP): On October 1, 1989, the Competitive Equality Banking Act of 1987, changed many aspects of the law relating to banking and refund processing. The portions of the law affecting refunds are commonly referred to as "Limited Payability". There are three primary ways the Limited Payability law affect IRS tax refunds:

1. U.S. Treasury checks (including all IRS tax refund checks) are negotiable for one year from the date of issuance or one year from the effective date of the new law, for those checks issued on or after October 1, 1989. BFS returns LP credits to the agency that authorized issuance of the check and is similar to returning credits on check claims when the check is outstanding (Status 32). No credits are returned on canceled checks issued before October 1, 1989.

2. Claims "on account of a Treasury check" must be presented to IRS for tax refund checks within one year from the date of issuance (or one year from the effective date of the new law) for checks issued before the law took effect. Different procedures apply to these claims. BFS involvement is much more limited than claims made within 1 year.

   Note: This provision of the law will not limit the time a taxpayer has to make a non-receipt claim. Because the law does not affect the "underlying obligation" for which a check is issued (for IRS, this obligation is the obligation to refund an overpayment of tax), IRS will process claims made after the one year period.

3. Reclamation actions by BFS through the banking system to recover funds on forged checks are limited to one year (or one and a half years if a timely claim, as described in (2), above, is filed). When BFS cannot recover funds, a credit will not be returned to IRS, even though settlement was authorized. Procedures for handling this situation are included in IRM 21.4.4.

4. Limited Payability Cancellation (LPC) Credits are transmitted monthly, provided that an LPC occurred. Credits originate from BFS to ECC. Cancellation data generates a TC 740 to the Master File via Form 1081 TRACS with block and serial number 66666 and will set an "S" Freeze on the account.

5. Reclamation (REC) Credits are transmitted monthly, provided an UCC occurred. Credits originate from BFS to ECC. ECC generates a TC 841 to the Master File via Form 1081 TRACS with block and serial 88000 and are the result of a non-receipt claim which secured recovery of funds through the banking system on a forged check. When BFS cannot recover funds, no credit will be returned to IRS, even though BFS authorizes settlement with the taxpayer.

(17) Master File (MF): Subsidiary records of taxpayer accounts established and maintained on magnetic tape at the ECC.

(18) Offer-In-Compromise (OIC): A proposal for settlement of a liability for tax or specific penalties for an amount less than previously assessed (or unassessed).

(19) Payment Over Cancellation (POC): This situation occurs when a second check is issued after an Unavailable Check Cancellation Credit (Form 1185) is returned to IRS via the Form 1081 TRACS Cancellations. This is a result of a non-receipt claim when both the original and second checks are subsequently cashed, creating a debit on the account.

(20) Posting Vouchers: Various procedures require the Deposit Activity to prepare a source document (Posting Voucher), containing the required information for input.

(21) Pre-search: Searching for required data not present on the source document, via IDRS and Automated Collection System (ACS) terminals, prior to the actual deposit of the remittance.

(22) Qualifying Intermediary: Term used for foreign banks to participate in Electronic Federal Tax Payment System (EFTPS).

(23) Reclamation Credit (REC): Credit is returned to the Service following a non-receipt claim (FMS Form 1133) filed with BFS.

1. Funds are recovered by BFS from the financial institution when a Treasury check is paid over a forged endorsement.

2. Credits are returned to IRS Master File via the Treasury Receivable and Accounting Collection System (TRACS) Form 1081 process.

(24) Supporting Documentation: The document(s) that support the refund credit. These documents are viewed by auditors to justify the disbursement of funds.

(25) For additional terms, see Glossary of Terms in Exhibit 3.17.79-1.

(1) The procedural guidelines contained in this IRM 3.17.79, Submission Processing, Accounting and Data Control, Accounting Refund Transactions, must be used in conjunction with IRM 3.17.63, Accounting and Data Control - Redesign Revenue Accounting Control System, IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, and all other associated program IRM's. Please ensure your employees understand the importance of adhering to the policy and procedures required by the IRM. These procedures are intended to ensure fair and consistent treatment of taxpayers.

(2) This IRM section includes instructions for Submission Processing, Accounting Operation, accounting and refund approval. Related processing information is located in the following IRMs (this list is not all inclusive):

1. IRM 1.11.3, Servicewide Policy Statement Process

2. IRM 1.15, Records and Information Management

3. IRM 2.4.19, Command Code REQ77, FRM77 and FRM7A

4. IRM 2.4.20, IDRS Command Code RFUND and REFAP

5. IRM 3.0.167, Losses and Shortages

6. IRM 3.11.10, Revenue Receipts

7. IRM 3.13.62, Media Transport and Control

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

9. IRM 3.17.20, The Refund Intercept Program

10. IRM 3.17.30, SC Data Controls

11. IRM 3.17.63, Redesigned Revenue Accounting Control System

12. IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

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

14. IRM 3.17.243, Miscellaneous Accounting

15. IRM 3.24.7, Delinquent Accounts

16. IRM 13.1, Taxpayer Advocate Case Procedures

17. IRM 11.3, Disclosure of Official Information

18. IRM 20.1, Penalty Handbook

19. IRM 20.2, Interest

20. IRM 21.1, Accounts Management and Compliance Services Operations

21. IRM 21.2, Systems and Research Programs

22. IRM 21.3, Taxpayer Contacts

23. IRM 21.4.1, Refund Inquiries

24. IRM 21.4.4, Manual Refunds

25. IRM 21.4.5, Erroneous Refunds

26. IRM 21.4.6, Refund Offset

27. IRM 21.5, Account Resolution

28. IRM 21.6, Individual Tax Returns

29. IRM 21.7, Business Tax Return and Non-Master File Accounts

30. IRM 21.10, Quality Assurance

31. IRM 25.6, Statute of Limitations

(3) The Internal Revenue Manual Index, Document 10988, Catalog Number 27371W, provides the revision date, catalog number and IRM references.

(1) ELECTRONIC FUNDS TRANSFER (EFT) identifies delivery systems used to transfer payment or funds electronically. These systems are a faster, more secure way of transferring funds in contrast to issuing paper checks.

1. The Kansas City Bureau of the Fiscal Service (BFS), formerly known as Financial Management Service (FMS), and the Federal Reserve Bank (FRB), are directly involved in two types of EFT services: Automated Clearing House (ACH), and Wire Transfers (FEDWIRE).

(2) AUTOMATED CLEARING HOUSE (ACH) REFUNDS FOR RETURNS FILED ELECTRONICALLY transfers funds electronically for participating depository financial institutions.

1. ACH primarily functions through the FRB. Rules, procedures, and programs were developed by the Regional ACH Association, National Automated Clearing House Association (NACHA).

2. ACH payment files received by the BFS on any business day allows for payee accounts to be credited the next business day. ACH payment processing can accept payment amounts up to $99 million.

(3) WIRE TRANSFER (FEDWIRE) is one of the major wire transfer systems directly connected to the FRB.

1. Known as the Federal Reserve Communications Systems (FRCS), wire transfers are executed through the FEDWIRE network.

2. The BFS uses FEDWIRE extensively to disburse and collect funds. BFS uses the Treasury FEDLINE to transmit funds through the FEDWIRE System.

(4) THE TREASURY FEDLINE PAYMENT SYSTEM (FEDLINE) processes requests for wire transfer on refunds of $1 million or more. Requests are received from the taxpayer on Form 8302, Electronic Deposit of Tax Refund of $1 Million or More. Form 8302 cites the restrictions and conditions which will result in a refund by check. The FEDLINE process requires supporting documentation and is considered on a case by case basis only. (See IRM 3.17.79.3.10.1, Form 8302.)

1. Treasury FEDLINE is an EFT system that has a direct line to the FRCS through the Federal Reserve Bank of New York (FRBNY).

2. Wire transfer payment schedules are routed to the Kansas City, BFS.

3. Payment amounts are limited to $999,999,999.99 million and are credited to payee accounts on the same business day.

(5) TREASURY CHECKS

1. Treasury checks are drawn on the U.S. Government and issued from a refund appropriation or other Treasury account symbol on a Secured Payment System (SPS) Refund Schedule submitted to the Kansas City, BFS. Treasury tax refund and other check payments are certified through the Kansas City, BFS SPS. The SPS screen print of the SPS Refund Schedule serves as supporting documentation for check-issue media submitted to the Kansas City, BFS. The SPS Refund schedule is created and matched to tape reel number or other transmission record, check volume, amount, and date certified. Individual payment detail data for check inscription, are included on the file. All refund schedules are certified by a designated "Authorized Certifying Officer" of the agency.

2. Form 3753, Manual Refund Posting Vouchers, are processed through the Internal Revenue Service (IRS) Integrated Submission and Remittance Processing system (ISRP) using Document Code 45 in the document locator number (DLN) for posting to the Master File. The SPS Refund Schedule is sent to the Kansas City, BFS, for disbursement of the refund.

3. Forms 5792, Request for IDRS Generated Refund (IGR), are input via Integrated Data Retrieval System (IDRS) (CC RFUNDR) and transmitted to the Kansas City, BFS. Files are sent simultaneously to the Enterprise Computing Center for posting the TC 840 to the Master File.

4. Miscellaneous refund payments such as Photocopy Fee (Form 4506, Request For Copy of Tax Return) reimbursements are certified by the Internal Revenue Service (IRS) and sent to the Kansas City, BFS, to issue a check. Miscellaneous refund payments are issued from General Ledger Accounts and are not reflected on the Master File.

(6) Secure Payment System (SPS) is an application that provides a mechanism by which government agencies can create payment schedules in a secure fashion, and with a strictly enforced separation of duties. This application allows personnel at Federal Program Agency (FPA) locations to submit schedules to the Kansas City, BFS over a browser/web interface. Two different user-types are required and responsible for an FPA to submit schedules to SPS. First, a Data Entry Operator (DEO) creates a schedule and submits the schedule for certification. Next a Certifying Officer (CO) examines the schedule and upon verification, certifies the schedule which results in the schedule being submitted to Kansas City, BFS. See IRM 3.17.79.6.4, Bureau of the Fiscal Service Secure Payment System.

(7) International Treasury Services (ITS)

1. Federal agencies use the International Treasury Services (ITS) web application, ITS.gov, to issue payments to recipients in foreign countries. ITS can support payments in either foreign currency or USD depending on the needs of the federal agency and supports both one-time and recurring payments, including vendor, benefit, payroll, or other payment types.

2. The Bureau of the Fiscal Service provides international payment services to federal agencies allowing payments to be made in 140 currencies in more than 200 countries.

3. ITS is used in conjunction with SPS when sending payments to recipients in foreign countries. ITS users must have the corresponding access in SPS for the role that they will be using.

(1) Service officials and managers must communicate security standards contained in IRM 1.4.6, Managers Security Handbook, to employees and establish methods to enforce the standards. Employees must take precautions in providing security and privacy for the documents, information, and property which they handle in performing official duties.

1. Any e-mail containing PII must be encrypted (secured). For more information on e-mail and privacy (See IRM 10.5.1.6.2, Encryption).

2. All shipment of tax returns and return information between Submission Processing, Accounts Management, Compliance Services Operations, the IRS National Office, IRS field areas and territories, the Enterprise Computing Centers, Bureau of the Fiscal Service or other government agencies and jurisdictions are documented, accomplished and accounted for as required by IRM 1.4.6, Managers Security Handbook.

(2) All IRS employees must comply with ethical standards when following these procedures to prevent fraud, abuse and waste.

(3) Employees must protect the confidentiality of all IRS sensitive information, including PII and tax information. Follow the IRS Privacy Principles, found in IRM 10.5.1.3.2, IRS Privacy Principles.

(1) The Enterprise Computing Center (ECC) generates Individual Master File (IMF) and Business Master File (BMF) refund records in ZIP Code sequence within the two-digit center code. Direct deposits are in Bank Account/Routing Transit Number (RTN)/Service Center order.

(2) The IDRS Generated Refund (IGR) records are in account number, employer identification number (EIN) or social security number (SSN) sequence.

(1) Do not allow unauthorized persons access to certain posting and sensitive documents requiring authorized signatures between signing and transmission of the SPS Refund Schedule to the BFS.

1. Submission Processing Director (and/or other supervisory levels) will ensure the integrity of signatures by establishing procedures for signing Form 3753 and/or Form 5792, Request for IDRS Generated Refund (IGR) and appointments/terminations of designated Certifying Officers. See IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds and IRM 3.17.79.1.8, Designating Certifying Officers (CO) and CO Review.

(2) The Submission Processing Director will delegate authority to review and approve a Form 3753, and/or Form 5792 refund request. The approving official cannot be the Certifying Officer.

1. Employees authorized to approve a manual refund request cannot also have authorization to initiate a manual refund request and/or adjust taxpayer accounts.

2. A manual refund authorizing official or Certifying Officer, must not have the following sensitive command codes in their IDRS command code profiles: ADJ54, ADC24, ADC34, ADC48, ADD24, ADD34,ADD48, AMCLS, BNCHG, INCHG, ADJ54, DRT24, FRM34, DRT48, REQ54, URAPL, URREF, XSAPL, XSREF, RFUND, and REFAP.. Authorizing Officials and Certifying Officer must be added to the RSTRK (M) Listing upon taking those roles. The Taxpayer Identification Number (TIN) of the authorizing official or Certifying Officer must be provided to the Accounting Operation, Manual Refund function ,so that function can add the Authorizing Official or Certifying Officer to the RSTRK (M) Listing. The TIN information must be provided even when the Authorizing Official or Certifying Officer does not have IDRS access.

   Note: A complete list of the Restricted Command Codes for the Role of Manual Refund Authorizers and Manual Refund Certifying Officers can be found in IRM Exhibit 10.8.34-9.

3. The internal control separation of duties was established by GAO to protect the integrity of government funds. This automated security review; Automated Command Code Access Control (ACCAC) reduces the potential for financial mismanagement. The ACCAC database is maintained by Information Technology (IT), Cyber Security Division.

4. The Accounting Operation, Unit Security Representatives (USR) will perform IDRS actions per the IRM 10.8.34, IDRS Security Controls. See IRM 10.8.34, Exhibit-5, Sensitive Command Code Combinations. ACCAC provides ability to automatically activate, deactivate or bypass Command Code profiles and to limit access for IDRS security profiles.

5. The ACCAC was developed by IDRS Security with the affected business operating divisions to initiate a standard procedure to ensure that restricted combination sensitive command codes are not in the employee profiles.

6. The requirements for management officials to provide personal information to the Unit Security Representative (USR) is located in IRM 10.8.34, IDRS Security Controls. The ACCAC system is designed to update the Restricted Command Code Access Lists for each Center. Employees must protect the integrity of all personal information. The Unit Security Representatives are designated to key enter and remove restricted command code access data into and from the database. Standard information and IDRS Security review actions by Unit Security Representatives are found in IRM 10.8.34, Exhibit-5, Sensitive Command Code Combinations.

   Note: Manual Refund Authorizers and Certifying Officers must provide TIN information to allow the input of the Restricted Command Code Access List (RSTRK(M). The access list will update the Manual Refund authorizer/Certifying Officer IDRS security profile, if they have IDRS or not.

7. The Submission Processing, Accounting Operation, Manual Refund function continues to maintain and secure original signatures of officials authorized to approve manual refund requests (Form 14031, Manual Refund Signature Authorization,) -See IRM 3.17.79.3.5, Employees Authorized to Sign Requests for Refunds.

(3) The Department of the Treasury, Bureau of the Fiscal Service issues procedures for delegations of authority (Transmittal Letter Part 4A- Chapter 3000, Requirements for Scheduling Payments Disbursed by BFS). An Form FS 2958DO, Delegation of Authority, must be completed to establish the name and title of the individual that is the Delegated Head of Office of the Federal Agency and to obtain signature samples from that individual.

1. Each SP site must assign at least one alternate (Back-up) that will sign documents for access to the Secure Payment System (SPS) in the absence of the Authorized Delegated Official.

2. Delegated Heads of Office and alternate (Back-up) delegated Heads of Office must have a current FS Form 2958DO, Delegation of Authority on file with the BFS; CFO, Financial Management, Policy and Data Analytics Office), and the applicable Submission Processing Center.

3. To prepare the Delegation of Authority package for submission refer to the "If - Then" chart below:

   Note: Ensure the memos and forms below are submitted timely to allow Headquarter and the Policy and Data Analytics office to prepare package for signature and the Bureau of the Fiscal Service to process the electronic paperwork

IF.....	THEN.....
Personnel changes occur - Adding Director or Alternate (Backup)	Prepare Delegation of Authority as follows: SP, Director Memorandum (Microsoft WORD Document) Form 13839-A, Note to Reviewer Form 14074, Action Routing Sheet e-mail to Manual Refund Headquarter Contacts Complete the following: FS Form 2958DO, Delegation of Authority Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Personnel changes occur - Removing Director or Alternate (Backup)	Prepare Revocation as follows: SP, Director Memorandum (Microsoft Word Document) Form 13839-A , Note to Reviewer Form 14074, Action Routing Sheet e-mail to Manual Refund Headquarter Contacts Complete the following: FS Form 2958DO, Delegation of Authority Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Name change occurs - Director or Alternate (Backup)	Prepare Name Change as follows: SP, Director Memorandum (Name Change)(Microsoft WORD Document) Form 13839-A , Note to Reviewer Form 14074, Action Routing Sheet e-mail to Manual Refund Headquarter Contacts Complete the following: FS Form 2958DO, Delegation of Authority (Delegation Current Name) FS Form 2958DO, Delegation of Authority (Revocation Former Name) Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Delegation is due to expire - Director or Alternate (Backup)	Prepare Re-Delegation as follows: SP, Director Memorandum (Microsoft WORD Document) Form 13839-A , Note to Reviewer Form 14074, Action Routing Sheet e-mail to Manual Refund Headquarter Contacts Complete the following: The Pre-Expiration Notice sent from BFS or FS Form 2958DO, Delegation of Authority Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note: "Sample" forms and memorandums, noted in the table above can be obtained on the Submission Processing (SP), Accounting & Tax Payment (ATP), Manual Refund Project SharePoint site in the “SPS/ITS Forms and Templates” folder at the following link: Manual Refund Project - Home (sharepoint.com)

Note: Example of the forms can be located under the "SPS/ITS Forms and Templates" link. The SP, ATP, Manual Refund Project SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access to the Manual Refund Project SharePoint must be requested through BEARS. See IRM 3.17.79.1.1.3.

(4) Preparation of the electronic FS Form 2958DO, Delegation of Authority:

1. Forms MUST be completed and submitted electronically to the Bureau of Fiscal Services (BFS).

2. SECTION I - DESIGNEE Complete the fields in Section I by filling in the appropriate Delegation of Authority (DO) information under a. information, then checking one of the following applicable boxes under b. Request Type (Check One):
   "Original"
   "Delegation Update (Comments Required)"
   "Revocation",
   and then secure the Delegation of Authority’s Digital Signature under c.1. Digital Signature.

   Note: All FS Form 2958 DO are submitted electronically to the BFS so a digital signature must be secured. Therefore, the "c.2. Ink Signature "box must not be used.

3. SECTION II - DELEGATOR Complete the following section by: inputting the date the Delegation of Authority becomes effective and checking the Designate Certifying Officers, Data Entry Operations, Designated Agents box under d. Delegation.

Note: The digital signature needed in box "e.1. Digital Signature" is from the Chief Financial Office (CFO) Designating Official. This box must be left blank and the necessary digital signature will be secured by the CFO Point of Contact.

4. SECTION III - POINT OF CONTACT Input the following information for the Chief Financial Office Point of Contact, Cynthia A. Carver, under f. Information:
   Address: Internal Revenue Service
   Attn: C.A. Carver OS:CFO:FM;
   111 Constitution Avenue NW
   Room 6100K, Mail Stop 6167
   Washington, DC 20224
   Email: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
   Phone: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

5. SECTION IV- "FISCAL SERVICE VALIDATION" This section is for the BFS Use Only. Beginning October 1st, 2022, this section has been left blank by the BFS and the confirmation that the Delegation of Authority request was validated by the BFS is now delivered electronically to the Internal Revenue Service Points of Contact through a systemic process which includes an email when the delegation is processed with a STEP Profile Details summary page attached. This summary page is sent from the STEP System, which is the system the BFS uses to processes the Delegation of Authority requests. And the STEP Profile Details summary page shows the pertinent Delegation of Authority information including the date the designation was completed by the BFS and will now serve as the BFS Validation for the designation.

   Note: Prior to October 1st, 2022, the BFS provided validation for the FS Form 2958DO by having a BFS Validating Official digitally sign in this section and return the digitally signed form to the Internal Revenue Service Points of Contact.

   
   

(5) The Policy and Data Analytics office will associate the SP Director memorandum and the Delegation of Authority package and electronically forward to the BFS. The BFS will validate or revoke and return the Delegation of Authority package to the Policy and Data Analytics office. The Policy and Data Analytics office will route to the applicable Submission Processing Center. Allow four weeks for the Policy and Data Analytics office to return the validation or revocation to the SP site and if not received within this period contact Cynthia A. Carver at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or by e-mail at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The electronic copy of FS Form 2958DO, Delegation of Authority, along with Step Profile Details summary page, showing the designation was completed by BFS serves as proper validation. The files must be maintained in a file accessible for review by internal and external customers. The BFS validation is effective for a 2 year period. Because all BFS validations are now handled electronically, the prior requirement of the validation label being present on the back of the FS Form 2958DO, Delegation of Authority, when received from the Policy and Data Analytics office, is no longer the process. Instead, the electronic copy of the FS Form 2958DO, Delegation of Authority, included with the STEP Profile Details Summary Page showing the designation was completed by the BFS, will serve as proper validation.

(1) 31 USC 3528 states a Certifying Officer is held responsible for the existence and accuracy of the facts stated on the refund voucher, in the supporting documents, and for the legality of the proposed payments, under the Refund Appropriation fund involved. From January 1 to by February 1 of each year or upon designation, the Certifying Officers are required to annually review the Certifying Officer Users’ Guide and complete the ITM training courses listed in IRM 3.17.79.1.1.1, Training and IRM 3.17.79.1.12.1, Certifying Officer (CO) Training, prior to performing their duties. The Certifying Officer User’s guide can be obtained in the “SPS/ITS Forms & Templates” folder at the SP ATP Manual Refund Project SharePoint site at the following link: Manual Refund Project - Home (sharepoint.com) under the “Certifying Officer Review and Responsibilities” sub-folder.

Certifying Officers will take whatever action they deem appropriate to ensure the vouchers they certify for payment are correct and proper. Periodically, the EOD26 listing may not be run because of mid-year programming changes etc. This will delay IDRS refunds. If this occurs the Certifying Officer must refer to IRC 6611(b) to determine if further steps are required to include any additional interest due the taxpayer in the amount to be refunded.

1. Automated Federal Agency enrollment requires Certifying Officers to file and maintain a valid FS Form 210CO, Designation of Certifying Officer, Signature/Designation for the Certifying Officer digitally signed by their Delegating Official who must have a current FS Form 2958DO, Delegation of Authority on file. See IRM 1.2.2.2.32, Delegation Order 1-41, Designation of Officers and Employees as Authorized Certifying Officers. The purpose of FS Form 210CO, Designation of Certifying Officer is to designate a certifying officer that will sign to certify refund authorizations.

2. Submission Processing Center Directors designate Certifying Officers to certify manual refunds. The Certifying Officer must be a management level (i.e. Department Manager, Team manager, Lead, etc.) or equivalent (i.e. P&A Analyst, Technical Advisor, etc.) employee within the Submission Processing. Additionally, the Certifying Officer must take the mandatory annual CO training located in IRM 3.17.79.1.12.1, Certifying Officer (CO) Training. The supporting documents for these disbursements are SPS Refund Schedules, Voucher and Schedule of Payments, or SPS screen print, Form 3753, Form 5792 and related credit (Form 3809, Miscellaneous Adjustment Voucher Form 3245, Posting Voucher - Refund Cancellation or Repayment) or file source documentation (e.g., cross reference).

3. Each SP site must designate at least one CO and one or more alternates to access SPS. The CO must have access to the SPS. Due to the sensitivity of the data processed, the BFS requires that every SPS user, at an agency, have an approved FS Form 89, Digital Access Request (DAR), on file to gain access to SPS. If an active CO is detailed to a temporary work assignment exceeding 120 days their FS Form 210CO, Designation for SPS Certifying Officer and FS Form 89 Digital Access Request (DAR) must be revoked.

   Note: An individual should not be designated as both a Certifying Officer and Data Entry Operator. (Internal Control, Separation of Duties)

4. The Submission Processing Centers must submit the latest version of FS Form 210CO, Designation of Certifying Officer and FS Form 89 Digital Access Request (DAR) electronically to: the Policy and Data Analytics office for a Designation, a Revocation and a Name Change request. Additionally, effective November 1, 2018, federal Certifying Officers, who certify payments for agencies through Treasury, Fiscal Service, are required by Fiscal Service to complete the Fiscal Service Certifying Officer Training as part of each issuance of new or renewed credentials. On FS Form 210CO, the Designee must affirm completion of Fiscal Service Certifying Officer Training within 30 days prior to submission of the Form. A certificate of completion is only available upon successfully passing the exam at the end of the training. The certificate of completion must be maintained by the Designee and must be provided upon request to Fiscal Service. The training can be found at: Bureau of the Fiscal Service - Training - Certifying Officer Training (treasury.gov). To prepare the electronic Designation of Certifying Officer package for submission refer to the "If - Then" chart below:

   Note: Ensure the memos and forms below are submitted timely to allow the Policy and Data Analytics office to prepare package for signature and the Bureau of the Fiscal Service to process the electronic paperwork.

IF.....	THEN.....
Personnel changes occur - Adding a Certifying Officer	Prepare original Designation as follows: Signed memorandum for the SP Field Director, to the Policy and Data Analytics office FS Form 210CO, Designation of Certifying Officer FS Form 89 Digital Access Request (DAR) Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Personnel changes occur - Removing a Certifying Officer	Prepare Revocation as follows: Signed memorandum from the SP Field Director to the Policy and Data Analytics office FS Form 210CO, Designation of Certifying Officer Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Name change occurs - Certifying Officer	Prepare Name Change as follows: Signed memorandum from the SP Field Director to the Policy and Data Analytics office FS Form 210CO, Designation of Certifying Officer (Designation, current name) FS Form 210CO, Designation of Certifying Officer (Revocation, former name) FS Form 89 Digital Access Request (DAR) Notate "Name Change "on the top of all forms listed above Photocopies of 2 forms of ID from the SPS user with their current name must be included Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Designation is due to expire and a "Letter of Expiration" is received from BFS	Prepare Letter of Expiration/Renewal as follows: Mark the appropriate box Renew or Revoke next to the CO name on the letter Signed memorandum from the SP Field Director to the Chief Disbursing Officer, Bureau of Fiscal Service Signed "Letter of Expiration or Renewal" (if using signed expiration letter for renewal, a new FS Form 210CO is not required) Form 3210, Document Transmittal Email the completed electronic package to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Upon receipt of the digitally signed renewal or revocation package from BFS, forward the entire electronic package to the Policy and Data Analytics office by secured e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note: "Sample" forms and memorandums, noted in the table above can be obtained in the SP, ATP, Manual Refund Project SharePoint site at the following link: Manual Refund Project - Home (sharepoint.com) under the "SPS/ITS Forms and Templates" link. The ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access to the Manual Refund Project SharePoint must be requested through BEARS. See IRM 3.17.79.1.1.3.

5. Certifying Officers must have an FS Form 210CO, Designation of Certifying Officer and a FS Form 89 Digital Access Request (DAR) on file at the BFS, Policy and Data Analytics office and the applicable Submission Processing Center. The Certifying Officer privileges must be renewed or revoked every year.

(2) Preparation of the electronic FS Form 210CO, Designation of Certifying Officer:

1. Due to the current submission requirements from the BFS, all forms must be completed, digitally signed, and submitted electronically to the Bureau of Fiscal Services (BFS) at the following email address: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

2. SECTION I - "DESIGNEE" Complete the fields in Section I by filling in the appropriate Certifying Officer information under a. Information, then checking one of the following applicable boxes under b. Request Type (Check One):
   Original
   Delegation Update (Comments Required)
   Revocation,
   then completing c. Certifying Officer Training by checking the Certifying Officer Training box and entering the date the BFS training was completed; and then secure the Certifying Officer’s Digital Signature under d.1. Digital Signature.

   Note: All FS Form 210CO are submitted electronically to the BFS so a digital signature must be secured. Therefore, the" d.2. Ink Signature Samples" box would not be used.

3. SECTION II - "DESIGNATOR" Complete the following section by: inputting the effective date of the Certifying Officer Designation under e. Designation and securing the Digital Signature of the Delegation of Authority under f.1. Digital Signature.

   Note: All FS Form 210CO are now submitted electronically to the BFS so a digital signature must be secured. Therefore, the"d.2. Ink Signature Samples" box must not be used.

4. SECTION III- "Point of Contact" Complete this section by filling in the name, address, email address, and phone number of the Point of Contact that must also be notified by the BFS once the validation is completed. This Point of Contact should be the Trusted Enrollment Agent (TEA).

   Note: The BFS Validation email, along with the STEP Profile Details summary page, will automatically be sent to the "DESIGNEE" and "DESIGNATOR" listed on the FS Form 210CO.

5. SECTION IV- "FISCAL SERVICE VALIDATION" This section is for BFS Use Only. Beginning October 1st, 2022, this section has been left blank by the BFS and the confirmation that the Certifying Officer request was validated by the BFS is now delivered electronically to the Internal Revenue Service Points of Contact through a systemic process which includes an email when the delegation is processed with a STEP Profile Details summary page attached. This summary page is sent from the STEP System, which is the system the BFS uses to processes the Certifying Officer requests. And the STEP Profile Details summary page shows the pertinent Certifying Officer information including the date the designation was completed by the BFS and will now serve as the BFS Validation for the designation.

   Note: Prior to October 1st, 2022, the BFS provided validation for the FS Form 210CO by having a BFS Validating Official digitally sign in this section and return the digitally signed form to the Internal Revenue Service Points of Contact.

(3) The Policy and Data Analytics office will forward the electronic package FS Form 210CO, Designation of Certifying Officer to the BFS. The BFS will validate or revoke and electronically return the FS Form 210CO, Designation of Certifying Officer to the applicable Submission Processing Center as indicated in SECTION III , POINT OF CONTACT, of the FS Form 210CO, . Allow up to four weeks to receive the systemic email validation back from the BFS and if not received within this period, contact the BFS Help Desk at (816) 414-2340. The BFS validation is effective for a 1 year period. Because all BFS validations are now handled electronically, the prior requirement of the validation label being present on the back of the FS Form 210CO, Designation of Certifying Officer, when the validated form is received back from the BFS, is no longer the process. Instead, the electronic copy of the FS Form 210CO, Designation of Certifying Officer, included with the STEP Profile Details Summary Page showing the designation was completed by the BFS, will serve as proper validation.

1. If the SP site receives the FS Form 210CO, Designation of Certifying Officer validation and/or revocation package directly from the BFS via email, a copy of the completed electronic package, along with the email from the BFS, must be provided to the Policy and Data Analytics office for their records by secured e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or by mail at the following address:
   Internal Revenue Service
   Attn: Cynthia A Carver, OS:CFO:FM
   1111 Constitution Ave, NW (Mail Stop 6167)
   Washington, DC 20224-0001

2. A file for each individual Certifying Officer must be maintained and accessible for review by internal and external stakeholders. The file must include FS Form 210CO, Designation of Certifying Officer and all associated documentation related to the designation. The Designations of Certifying Officers, forms, lists and correspondence relating to the designation to certify vouchers must be destroyed 6 years after revocation.

3. Upon receipt of the completed BFS validation, the Trusted Enrollment Agent (TEA) and Certifying Officer (CO) must notify the designated employee with the capability to add employee profile restrictions using IDRS CC RSTRK(M) to have the CO added.

(4) The review must be completed by the 5th business day of the following month.

(5) The manual refund manager must set up an outlook reoccurring reminder to ensure the review is documented and completed timely.

(1) SPS Data Entry Operators are individuals designated authority to create and modify SPS payment requests to Treasury. They have been designated on a FS Form 210DEO, Designation for SPS Data Entry Operator, by an authorized Designating Official with a valid FS Form 2958DO, Delegation of Authority on file with BFS.

(2) Each SP site must designate at least one DEO and one or more alternate to access SPS. Data Entry Operators are SP Accounting employees that have access to the BFS Secured Payment System (SPS). Due to the sensitivity of the data processed through SPS, the BFS requires that every SPS user at an agency have an approved FS Form 89 Digital Access Request (DAR) to gain access to SPS.

1. The Submission Processing Centers must submit the latest version of FS Form 210DEO, Designation for SPS Data Entry Operator and FS Form 89 Digital Access Request (DAR) to: the Policy and Data Analytics office. If an active DEO is detailed to a temporary work assignment exceeding 120 days their FS Form 210DEO, Designation for SPS Data Entry Operator and FS Form 89 Digital Access Request (DAR) must be revoked. Additionally, effective November 1, 2018, federal Data Entry Operators, who process payment requests for agencies through Treasury, Fiscal Service, are required by Fiscal Service to complete the Fiscal Service Certifying Officer Training as part of each issuance of new or renewed credentials. On FS Form 210DEO, Designation for SPS Data Entry Operator, the Designee must affirm completion of Fiscal Service Certifying Officer Training within 30 days prior to submission of the Form. A certificate of completion is only available upon successfully passing the exam at the end of the training. The certificate of completion must be maintained by the Designee and must be provided upon request to Fiscal Service. The training can be found at: Bureau of the Fiscal Service - Training - Certifying Officer Training (treasury.gov). To prepare the Designation of SPS Data Entry Operator package for submission refer to the "If - Then" chart below:

   Note: Ensure the memos and forms below are submitted timely to allow the Policy and Data Analytics office to prepare the electronic package for digital signature and the Bureau of the Fiscal Service (BFS) to process the electronic package

   .

IF.....	THEN.....
Personnel changes occur - Adding SPS Data Entry Operator	Prepare original Designation as follows: Signed memorandum from the SP Field Director to the Policy and Data Analytics office FS Form 210DEO, Designation of SPS Data Entry Operator FS Form 89 Digital Access Request (DAR) Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Personnel changes occur - Removing SPS Data Entry Operator	Prepare Revocation as follows: Signed memorandum from the SP Field Director to the Policy and Data Analytics office FS Form 210DEO, Designation of SPS Data Entry Operator Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Name change occurs - SPS Data Entry Operator	Prepare Name Change as follows: Signed memorandum from the SP Field Director to the Policy and Data Analytics office FS Form 210DEO, Designation of SPS Data Entry Operator (Designation current name) FS Form 210DEO, Designation of SPS Data Entry Operator (Revocation former name) FS Form 89 Digital Access Request (DAR) Notate "Name Change" on top of all forms listed above Photocopies of two forms of ID from the SPS user with their current name (must be included) Form 3210, Document Transmittal e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Designation is due to expire and a "Letter of Expiration/Renewal" is received from BFS.	Prepare Letter of Expiration/Renewal as follows: Mark the appropriate box Renew or Revoke next to the DEO name on the letter Signed memorandum from the SP Field Director to the Chief Disbursing Officer, Bureau of Fiscal Service Signed "Letter of Expiration/Renewal" (if using signed expiration letter of renewal, a new FS Form 210DEO is not required) Form 3210, Document Transmittal Email the completed electronic package to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Upon receipt of the digitally signed renewal or revocation validation package from BFS, forward the entire electronic package to the Policy and Data Analytics office by secured e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note: Sample memorandums and FMS forms are available on the SP, ATP, Manual Refund Project SharePoint site at the following link: Manual Refund Project - Home (sharepoint.com) under the "SPS/ITS Forms and Templates" link. The SP, ATP, Manual Refund Project SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access to the Manual Refund Project SharePoint must be requested through BEARS. See IRM 3.17.79.1.1.3.Manual Refund Headquarter Contacts.

2. Data Entry Operators must have a FS Form 210DEO, Designation for SPS Data Entry Operator and a FS Form 89 Digital Access Request (DAR) on file at the BFS, Policy and Data Analytics office and the applicable Submission Processing Center. The DEO privileges must be renewed or revoked every year.

(3) Preparation of the electronic FS Form 210DEO, Designation for SPS Data Entry Operator:

1. Due to the current submission requirements from the Bureau of Fiscal Services (BFS), all forms must be completed, digitally signed, and submitted electronically to the BFS at the following email address: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

2. SECTION I - "DESIGNEE" Complete the fields in Section I by filling in the appropriate Data Entry Operator information under a. Information, then checking one of the following applicable boxes under b. Request Type (Check One):
   Original
   Delegation Update (Comments Required)
   Revocation,
   then completing c. Certifying Officer Training by checking the Certifying Officer Training box and entering the date the BFS training was completed, and then secure the Data Entry Operator’s Digital Signature under d.1. Digital Signature.

   Note: All FS Form 210DEO are submitted electronically to the BFS so a digital signature must be secured. Therefore, the"d.2. Ink Signature Samples" box must not be used.

3. SECTION II - "Designator" Complete the following section by: inputting the effective date of the Data Entry Operator Designation under e. Designation and securing the Digital Signature of the Delegation of Authority under f.1. Digital Signature.

   Note: All FS Form 210DEO are now submitted electronically to the BFS so a digital signature must be secured. Therefore, the "d.2. Ink Signature Samples "box must never be used.

4. SECTION III- "Point of Contact" Complete this section by filling in the name, address, email address, and phone number of the Point of Contact that must also be notified by the BFS once the validation is completed. This Point of Contact should be the Trusted Enrollment Agent (TEA).

   Note: The BFS Validation email, along with the STEP Profile Details summary page, will automatically be sent to the "DESIGNEE" and "DESIGNATOR" listed on the FS Form 210DO.

5. SECTION IV- "FISCAL SERVICE DESIGNATION" This section is for BFS Use Only Beginning October 1st, 2022, this section has been left blank by the BFS and the confirmation that the Data Entry Operator request was validated by the BFS is now delivered electronically to the Internal Revenue Service Points of Contact through a systemic process which includes an email when the delegation is processed with a STEP Profile Details summary page attached. This summary page is sent from the STEP System, which is the system the BFS uses to processes the Data Entry Operator requests. And the STEP Profile Details summary page shows the pertinent Data Entry Operator information including the date the designation was completed by the BFS and will now serve as the BFS Validation for the designation.

   Note: Prior to October 1st, 2022, BFS provided validation for the FS Form 210DEO by having a BFS Validating Official digitally sign in this section and return the digitally signed form to the Internal Revenue Service Points of Contact.

(4) The Policy and Data Analytics office will forward the electronic package FS Form 210DEO, Designation for SPS Data Entry Operator and FS Form 89 Digital Access Request (DAR) to the BFS. The BFS will validate or revoke and electronically return the FS Form 210DEO, Designation for SPS Data Entry Operator to the applicable Submission Processing Center as indicated in SECTION III, POINT OF CONTACT of the FS Form 210DEO, Designation for SPS Data Entry Operator. Allow up to four weeks to receive the systemic email validation back from the BFS and if not received within this period please contact BFS Help Desk at (816) 414-2340. The BFS validation is effective for a 1-year period. Because all BFS validations are now handled electronically, the prior requirement of the validation label being present on the back of the FS Form 210DEO, Designation for SPS Data Entry Operator, when the validated form is received back from the BFS, is no longer the process. Instead, the electronic copy of the FS Form 210DEO, Designation for SPS Data Entry Operator, included with the STEP Profile Details Summary Page showing the designation was completed by the BFS, will serve as proper validation.

(5)

1. If the SP site receives the FS Form 210DEO, Designation of Data Entry Operator validation and/or revocation package directly from BFS via email, a copy of the complete electronic package, along with the email from the BFS, must be provided to the Policy and Data Analytics office for their records. The copies can be sent by secured e-mail to: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡or by mail at the following address:
   Internal Revenue Service
   Attn: Cynthia A Carver, OS:CFO:FM
   1111 Constitution Ave, NW (Mail Stop 6167)
   Washington, DC20224-0001

2. A file for each individual Data Entry Operator must be maintained and accessible for review by internal and external stakeholders. The file must include FS Form 210DEO, Designation of Data Entry Operator and all associated documentation related to the designation. The Designations of Data Entry Operator, forms, lists and correspondence relating to the designation must be destroyed 6 years after revocation.

(1) The TEA performs in-person proofing of agency level Certifying Officers (CO) and Data Entry Operators (DEO). This requires one form of valid government issued picture identification for all COs and DEOs.

(2) The Trusted Enrollment Agent is not a user of SPS, but supports the users with the Digital Access Request issuance and management. Agencies have the option of designating a person in their organization as a TEA.

(3) Each SP site must designate at least one TEA. The BFS requires that each TEA have an approved FS Form 89 Digital Access Request (DAR) and FS Form 90 Digital Access Support Nomination (TEA SupNom) on file at BFS. The TEA Privileges must be renewed or revoked every year. Ensure the following Forms are submitted timely to allow Policy and Data Analytics Office to prepare package for signature and the Bureau of the Fiscal Service to process paperwork:

Note: Sample memorandums and FMS forms are available on the SP, ATP, Manual Refund Project SharePoint site at the following link: Manual Refund Project - Home (sharepoint.com) under the "SPS/ITS Forms and Templates" link. The SP, ATP, Manual Refund Project SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access to the Manual Refund Project SharePoint must be requested through BEARS. See IRM 3.17.79.1.1.3.

Note: A file for each individual TEA must be maintained and accessible for review by internal and external stakeholders. The file relating to the designation must be destroyed 6 years after revocation.

(1) The Authorizing Official (AO) is responsible for designating individuals to access ITS.gov, providing accurate information on the ITS.gov Organization Enrollment and User ID Request Form, and signing Section III of that form.

(2) The AO should not have a user role in ITS.gov that creates or verifies payments. The AO will be given Inquiry Only access but not Payment Creator, Payor, or Releaser roles to ensure proper separation of duties.

(3) An AO, and alternate, must be the same as the Delegating Official for SPS and must have the Fiscal Service Delegating Official form 2958DO on file with Fiscal Service before requesting to be an AO.

(4) In addition to approving the ITS Enrollment form for new user access, approval is also expected on the enrollment form:

• For modification of a user / account to include change in name, e-mail address, appropriate role within ITS, or ALC.

• For Delete / Deprovision of a user account within 2 business days of the account not being needed.

• For Delete / Deprovision of a user account immediately if the user has left on unfriendly terms or is believed to pose a risk to the ITS application, payments, or alternate users.

(5) On an annual basis the AO is expected to recertify the users specific to their ALC and role for the users to maintain their access.

(6) Should a user account be suspended based on inactivity the user will contact ITS Enrollment who will in turn send an e-mail to the AO looking for confirmation that the account will be restored.

(7) Where feasible the AO in coordination with the customer agency must revalidate on an annual basis PII within ITS for their ALC.

(8) ITS Users sign Rules of Behavior that note they are responsible for their accounts and credentials and to call the Fiscal Service Help Desk at 304-480-7777 if these are misused or misplaced. Should the AO be notified of a similar security issue they must call the ITS Enrollment Line at 816-414-2150.

(1) A Payor must be the same as the Certifying Officer (CO) for SPS and must have the FSForm 210CO on file with Fiscal Service before requesting to be a Payor.

(2) The Payor is responsible for reviewing payments created by the Payment Creator in ITS. Once reviewed the Payor will have three options:

• Verify

• Mark for Correction

• Delete Payment

(1) A Payment Creator must be the same as the Data Entry Operator (DEO) for SPS and must have the FSForm 210DEO on file with Fiscal Service before requesting to be a Payment Creator.

(2) The Payment Creator is responsible for the entry of all payment information to initiate a payment through ITS. After the Payment Creator has completed their actions all payments will be reviewed by a designated Payor before being released to Fiscal Service.

(1) The Enterprise Computing Center (ECC) generates and produces, in prescribed magnetic media output format, weekly schedules of refunds of overpayment balances on BMF and IMF accounts.

(2) The Customer Account Data Engine (CADE) 2 is the modernized system for Individual Master File (IMF).

(3) The components of CADE 2, Transition State 1, was deployed in January 2012. Changes included daily processing for certain individual taxpayers, Center production cycle, posting cycles, accelerated refunds and notices, and accelerated IDRS posting. Daily Processing, IMF (Individual Master File) processing with the cycle definition outlined below, but processing daily (daily transactions to daily accounts) with weekly processing occurring on Thursday.

• Center Cycle Wednesday

• Master File Processing - Thursday

• Notice Review - Saturday - Monday (8+ days)

• Unpostables - Available Tuesday; Closing Tuesday

• Direct deposit refunds are issued in 4 business days from posting

• Paper check refunds are issued in 6 business days from posting

• IMF notices under a $500 tolerance (balance due under $500 or change in tax under $500) bypass Notice Review Processing System (NRPS) and are sent directly to Correspondence Processing System (CPS)

• Establish the taxpayer account database that contains all individual taxpayer accounts. IMF processes all transactions and settles accounts and provides data to the CADE 2 database. IMF remains the system of record for Transition State 1

• Key programs IDRS and IPM (Integrated Production Model) receive data from the CADE 2 database

• Accelerated IDRS/TIF (Taxpayer Information File) Updates - The weekend IDRS/TIF analysis and updates occur the immediate Saturday after master file processing completes on Thursday.

(4) CC IMFOL/BMFOL definer "E" screen will contain the word "DAILY" in the upper right hand corner to indicate the taxpayer account qualifies for daily processing.

(5) IMF transactions posting time-frames are outlined as follows:

1. Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after Center input. Transactions will be viewable on IDRS command codes the third day after Center input.

2. Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and will result in the account type changing to Weekly.

3. Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

   Note: For items b and c, transactions will be viewable using CFOL command codes on the Saturday following the Thursday processing run. Transactions will be viewable on IDRS command codes Monday following the Thursday processing run.

4. Use of the Posting Delay Code on transactions will result in the transaction being held until the weekly processing on Thursday. When the transaction is processed on Thursday and the Posting Delay Code contains a value other than zero, the transaction will continue to re-sequence for the number of cycles equal to the value.

   Note: A transaction input with a Posting Delay Code of 1 will be processed on Thursday, and will re-sequence until the following weekly processing day (the following Thursday).

   Note: Use of the Posting Delay Code on a daily account with daily transactions will result in delaying the posting of the transactions that would resolve the account.

(6) BMF transaction posting time-frames are outlined as follows:

1. Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

2. Transactions will be viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

   Note: With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

(7) IMF cycle posting dates will reflect a format of YYYYCCDD. YYYY will indicate the year. CC will indicate the posting cycle. For IMF transactions, the following values for DD are defined:

1. 01 = Friday

2. 02 = Monday

3. 03 = Tuesday

4. 04 = Wednesday

5. 05 = Thursday

   Note: BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF cycle posting dates in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

(8) With accelerated refund processing, there are conditions under which accounts will not reflect the refund transaction (TC 846) upon settlement of the account. IMF will systemically prevent the refund transaction from generating. IMF will systemically generate the refund transaction (TC 846) when the refund hold expires.

1. A refund hold will be applied when through Master File processing of the account, the account meets Priority Refund Transcript criteria (Refund, Refund-E, Refund-S, $1M, and $10M). The accounts will reflect a TC 971 AC 805 and a TC 570 with blocking series “55555” indicating the refund hold has been applied. The hold will systemically expire 4 business days after the TC 971 AC 805 date.

2. A refund hold will be applied when through Master File processing of the account, the account meets criteria to issue CP (Computer Paragraph) 12, 16, 21, or 24. These accounts will be processed during the weekly processing on Thursday. The accounts will reflect a TC 971 AC 804 and a C- freeze. The hold will systemically expire 7 calendar days after the TC 971 AC 804 date.

(9) Due to the accelerated refund processing, BFS will no longer accept NOREF or HAL requests for IMF refunds. Functions that are impacted by the refund holds outlined in (9) will have specific guidelines to address accounts that have the systemic holds instead of using NOREF as Submission Processing has known it pre-January 2012.

(10) For functions that do not have specific requirements to place holds on inventory, the following guidelines are provided for IMF accounts:

(11) Quality Review is not impacted by CADE 2 daily processing and will operate as it has been pre-January 2012. If the Quality Review command codes have been executed input to place a hold on and employee’s work, the hold will prevent any transactions from being forwarded to the Computing Center for Master File processing, allowing the review period the following day.

(1) Separate files and refund schedules are produced at ECC as follows:

1. BMF refunds for each Center (Excluding D.O. 66 and 98).

2. IMF refunds for each Center (Excluding D.O. 66, 97, and 98).

3. BMF International refunds for Districts 66 and 98.

4. IMF International refunds for Districts 66, 97 and 98.

5. IMF refund/rebate/EIC data for each Center (excluding D.O. 66, 97, and 98).

6. BMF refund/rebate data for each Center (excluding D.O. 66 and 98).

7. IMF direct deposit refunds for each Center (excluding D.O. 66, 97, and 98).

8. BMF direct deposit refunds for International for Districts 66 and 98.

9. BMF accelerated refunds for each Center (excluding Districts 66 and 98).

10. BMF accelerated refunds for International for Districts 66 and 98.

11. IMF direct deposit refunds for Assistant Commissioner (International) for D.O. 66, 97, and 98.

(2) ECC prints and certifies the Voucher and Schedule of Payments, in three parts, for each refund file from the Secure Payment System (SPS). The 23C Assessment Certificate and posting calendars can be found in Document 6209 as well as associated IRM's.

(1) Refunds from deposit fund, (for example, 4710 Account Offer-in-Compromise (OIC), 4720 Account Seizure, 4730 Account Miscellaneous and refunds of $100 Million or more, must be initiated on a Form 3753 and submitted on Form 1166/Secure Payment System (SPS).

(2) Manual refunds of $100 Million dollars or more are manually prepared on paper by the BFS. All other forms of manual refunds, are submitted on Form 1166 and transmitted to BFS via Secure Payment System (SPS) by Certifying Officers.

(3) Submission Processing Center employees and field offices must make every effort to issue IDRS-generated refunds, whenever possible.

(4) All supporting documentation must be attached to the manual refund request.

(5) "Bank Lead" manual refund requests must document all x-reference information in the "Remarks" Section IV of the Form 3753, i.e., TIN, money amount, deposit ticket number, date of deposit, "unapplied refund reversal to be issued to bank".

(6) "Bank Lead" manual refund requests supporting documentation must include the following:

• If payment was applied to the taxpayer account, a copy of current taxpayer account reflecting TC 720 payment and a copy of Form 3809 , reflecting a debit to taxpayer and credit to the general ledger account

• If the payment remained in the general ledger account, a copy of the Memorandum from the RICS External Leads reflecting the commingled money

• Copy of Bank request for specified funds (e-mail or letter) including: taxpayer information, date of payment, money amount, and copy of listing or check

• Copy of original Deposit (SF215 Deposit Ticket with listing or check)

  Note: "Bank Lead" funds must not be disbursed to other than the Financial Institution (Bank) which originally submitted payment. Exception: Documentation from Chief Counsel approving the issuance of the specified funds, to a specified account or taxpayer.

(1) Submission Processing, Accounting Operations, receives perfected (complete and signed with supporting documents attached) Form 5792 or Form 3753. Authorized requests for IDRS or manual refunds are received from various areas. Not all TC 840(s) are for manual refunds; some TC 840(s) are to enable the Master File to release freeze conditions - See Exhibit 3.17.79-2.

(2) Appropriate taxpayer account research must be performed by the initiator prior to forwarding the case to Accounting, Manual Refund function. See IRM 21.4.4 and IRM 3.17.79.3.3.1, Actions Required of Initiators Before Requesting Refunds.

(3) Review case to ensure that all pertinent information is attached (e.g., credit source documentation).

1. If hold codes are not correctly input by initiator, Accounting will reject - See IRM 3.17.79.3.2.2, Rejecting Manual Refunds. This prevents duplicate refunds.

2. Form 5792 /Form 3753 must include the specific reason and appropriate authority in Section II (1.) and the "Remarks" field as to why this item must be issued as a manual refund.

3. All Forms 5792/Forms 3753must include the BOD that is initiating the manual refund.

4. If a direct deposit is being requested then proof from bank that a checking or savings account exists and it is the account of the taxpayer, a voided check, or a copy of an original tax return (signed and accepted) for the same tax period as the requested refund that has the routing and account information must be attached to Manual Refund Request.

   Note: Use discretion when taxpayer accounts are Married Filing Joint (MFJ).

   Note: For specific instructions for Form 8302 please see IRM 3.17.79.3.10.1.

(4) The initiator must indicate the DLN or other cross-reference transaction code or credit source document filing location in the "DLN of return" field of the manual refund posting document.

(5) When a dummy module is used, the DLN of the credit document must be reflected on the account or entered as a history item of the refund module and in the "DLN of return" field of the manual refund posting document.

(6) All manual refund request Forms 3753 and Forms 5792 must be electronically sent to Accounting in Portable Document Format (PDF) ONLY, and be digitally signed. The current version of Form 3753 and Form 5792 must be used . To assure the integrity of the digital signature, the digital signature must include the SEID followed by the Name of the signer - See IRM 3.17.79.3.2.3, Manual Refund Digital Signature Requirement.

(7) Due to Submission Processing Center consolidation, all BOD(s) are now emailing manual refunds to the gaining SP Accounting functions. The refund documents are emailed to accounting’s secure organizational mailbox. Accounting will then retrieve the Form 3753 or Form 5792 and back-up documentation from the organizational mailbox and process them using normal procedures. Accounting no longer accepts fax, e-fax, hardcopy, or scanned Forms 3753 and Forms 5792 manual refund requests - See IRM 3.17.79.3.2(6) above.

(8) Appropriate account research must occur prior to issuing manual refunds, including researching for outstanding balances, (e.g., IMFOL, BMFOL, MFTRA, TXMOD, ACTRA, DMF, and ANMF), freeze conditions and Criminal Investigation or Examination (e.g., TC(s) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or 810).

(9) If review of the account on IDRS reflects a TC 971 AC 664 indicating a Form 3753 Manual Refund is in process then reject - See IRM 3.17.79.3.2.2.

(10) If bankruptcy is indicated on Form 3753 or Form 5792, accept the following:

• A -V or -W freeze code appears on the taxpayer account or there is a pending TC 520.

  Note: A TC 520 sets the -W, it is not necessary for a TC 520 to appear on every tax module. Ensure the -W appears on the tax module for refund disbursement.

and

• There is no pending TC 521

or

• A -V or -W freeze present, and there is a valid reason stated in the remarks section of Form 5792.

  Example: (1) case discharge, but the trustee is requesting for money to be returned as it was sent in error

  Example: (2) trustee requests refund of funds sent in error

Note: Section II, Box 3 and Box 7 of Form 5792 is not applicable to refunds issued by Insolvency, therefore there is no requirement for these two boxes to be checked.

(11) When working statute year cases, contact the Statute function prior to processing the refund requests.

(12) If the manual refund request is being rejected - See IRM 3.17.79.3.2.2. Apply prudent judgment prior to rejecting manual refund requests.

(13) Overpayment interest on an overpayment issued as a manual refund (Form 3753 or Form 5792) is computed FROM the interest start date TO the Refund Issue Date.

(14) When determining the 45-day interest free period, refer to IRC 6611(e)(1), 6611(e)(4) and 6611(g). See IRM 20.2.4.7.5.2(2), 45-Day Rule and All Original Tax Returns and IRM 20.2.4.7.6, 180-Day Rule for instruction.

(15) Attach a copy of each Form 5792 and/or Form 3753 to the related Form 1166 SPS print, maintained in Accounting.

(16) If the return is in the unpostable section of the Master File, the return record will be nullified in accordance with IRM 3.12.32, Generalized Unpostable Framework (GUF).

(17) If an account shows the literal "CEP" or "LARGE CORP", followed by a two-digit Center Code or File Location Code indicator on IDRS, Master File transcripts, or "BMFOL", the initiator must indicate in the remarks area of Form 5792 or Form 3753 that the refund was approved by the Technical function. (For example, "Approved By Technical", "Tech Approved" or "TPR").

(18) Submission Processing Centers will issue manual refunds for hardship, systemic limitations, Service-caused unnecessary delays, corporate original settlements, and IMF/BMF carry-backs when the 45-day interest-free period is in jeopardy.

(19) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(20) All Form 3753 manual refunds must be controlled for monitoring by the SP Accounting function. It is the discretion of management to select the individual or team that will work the aged inventory listing (CCA). Each SP Center is required to use a unique team identifier, that will automatically generate all open controls to the weekly aged inventory listing (CCA). Monitoring the Case Control Activity (CCA) list must be performed on a weekly basis. When the Form 3753 manual refund requests are received, the SP Accounting function will open a control base using the unique team identifier.

(21) Requests for hardship Manual Refunds (typically requested by Taxpayer Advocate Service) are described in IRM 3.17.79.3.3, Issuing Hardship Refunds.

(22) Joint Committee Cases per IRC 6405: employees must provide the supporting documentation to the Joint Committee Specialist assigned to the case. See IRM 4.36.4, Joint Committee Specialist Procedures.

(23) Refunds for Branded Prescription Drugs under $10 Million are systemically generated. There are times when a manual refund is required (i.e., undeliverable refund due to bad address). Supporting documentation for processing manual refund requests for Branded Prescription Drugs under $10 Million may include Form 3911, Taxpayer Statement Regarding Refund, “Letter of Overpayment” and “Amount Due to Covered Entity”. These documents are acceptable as supporting documentation.

(1) The Certifying Officer, in accordance with 31 USC 3528, is accountable for refunds certified for payment and has the right of review as prescribed in IRM 3.17.79.1.11, Authorized Signatures and Delegations of Authority. The refund and Certifying Officer review is performed the next day.

(2) Taxpayer Advocate Service (TAS) refund requests will be received as hardships. Manual refund cases received as a paper check (Form 5792) requests must be complete and contain all required supporting documentation (including third party verification or a signed statement from the Local Tax Advocate (LTA)) in order for TAS to initiate. See IRM 21.4.4.

(3) A direct deposit (Form 3753) request must be complete and contain all required supporting documentation (including 3rd party verification) or a signed statement from the LTA in order for TAS to initiate. In addition to following procedural guidelines in IRM 21.4.4, the following must be included to substantiate an ACH/Direct Deposit (DD) request:

1. Proof of economic hardship to support issuing an ACH/DD manual refund.

2. Proof from bank that a savings or checking account exists and it is the account of the taxpayer, a voided check, or a copy of an original tax return (signed and accepted) for the same tax period as the requested refund that has the routing and account information,when the refund requested is the original tax return. Use discretion when taxpayer accounts are Married Filing Joint (MFJ).

Note: A TRDBV print can be used as proof of a valid bank account when issuing a direct deposit hardship manual refund into a RAL/RAC account of an original electronic filed return.

(4) Refunds to be processed in less than 5 days. Hardships refunds are those refunds required based on hardship where the taxpayer needs the refund in less than five (5) days.

1. These requests are granted under rare and unusual circumstances and must meet certain criteria. See references and actions required provided in IRM 13.1, Taxpayer Advocate Case Procedures.

2. Procedures for immediate processing of hardship refunds must be considered, see reference IRM 3.17.79.3.3(2), Issuing Hardship Refunds

3. Prepare Form 3753.

   Note: Refunds of $100 million dollars and over require the Form 3753 - See reference IRM 3.17.79.3.6, Manual Refunds $1 Million or More and $10 Million or More.

(5) Refunds to be processed within 5–10 days. When necessary for the urgent issuance of a refund, prepare Form 5792. The refund request can be sent via e-mail to the Submission Processing Center (SPC) Manual Refund function organizational mailbox.

1. The requesting office authorized approving official must sign and have a current signature on file with the SPC Certifying Officer. See reference at IRM 3.17.79.3.5, Employees Authorized to Approve Requests for Refunds.

2. The Approving Official is responsible for the validity of each refund requested. The request must be made directly to the Manual Refund function.

3. The request is supported by emailing the necessary documentation to the Manual Refund function organizational mailbox.

Note: The emailed Form 5792 and Form 3753 will be considered as original documents. It will no longer be necessary for the original forms to be sent via overnight mail to the Accounting function.

4. These requests are for taxpayers who will suffer significant hardship if their refund is not processed within 5–10 days. Otherwise follow normal procedures if this accelerated time frame is not required.

5. Do not initiate a manual refund if the case can be cleared through Enterprise Computing Center (ECC) - Martinsburg in 2 cycles.

(6) Prior to issuing manual refunds, initiators must review account information and take actions such as:

• Determine if the account is subject to offset by Bureau of the Fiscal Service Treasury Offset Program (TOP) or other tax obligations. See IRM 21.4.4 and IRM 21.4.6.

• Use appropriate hold codes or posting delay codes as applicable.

• Use TC 570 with credit transfers.

• Enter appropriate computer condition codes (CCC) with an original return.

• Use IDRS to ensure no other site or employee has issued a duplicate refund (TC 840), TC 971 AC 664, or that a refund has already generated (TC 846). The presence of a TC 971 AC 664 indicates that a Form 3753 is in process. If a generated refund will be issued within two cycles, do not issue a manual refund. It is necessary that prepaid credits claimed by the taxpayer are available for refund and that the taxpayer does not have any outstanding balances. See IRM 21.4.4, IRM 21.4.5 and IRM 21.4.6.

• Research freeze codes or IDRS control bases assigned to another IRS employee. If accounts are controlled, take no further action to release the freeze or control base without contacting that employee first. See IRM 21.4.4.

• A -U Freeze (Erroneous Refund Freeze) requires contact with the Erroneous Refund function and documentation of approval by the Erroneous Refund function in the remarks section of the Form 5792/Form 3753. Master File displays a TC 844 at times with a TC 700, Document Code 58 in the DLN. These accounts are being monitored by the Erroneous Refund function (SP Accounting Operations) to recover an unassessed erroneous refund. The TC 700 Document Code 58 is input by Accounting to prevent erroneous billing notices and will compensate injured taxpayers from a general ledger account. Transcripts (TRANS 844) generate to the Erroneous Refund function for applying credits that become available on accounts at the controlling SP Center.

• Review IMFOL/BMFOL. Determine whether a direct deposit was already issued to a bank account.

• Ensure erroneous refunds are not released during BMF accelerated cycles (generally occurs during the end of May, Cycle XXXX, September and October). Refund intercepts (stopping refunds via IDRS CC NOREF or HAL) are not possible during accelerated cycles.

(7) Accounting employees will report feedback to initiators when their actions cause erroneous refunds to occur. This is to ensure corrective actions are taken by originator's management officials.

(8) The processing of Form 3753, may take up to four (4) weeks for the TC 840 to post. However, the actual refund check is mailed within 2-3 days of initiating and certifying the manual refund. If a TC 846 is not present on an IMF account, and the account meets the refund hold criteria, the refund will be able to be stopped with NOREFP. See IRM 3.17.79.2.1(10) . If discovered that a TC 846 has posted prior to the TC 840, the discoverer must do one of the following:

1. Contact the Manual Refund function at the Submission Processing Center. Determine whether the manual refund can be stopped.

2. Input CC NOREF to stop the generated (TC 846) refund. Valid for BMF tax accounts only.

3. Contact the Notice Review function in the appropriate Submission Processing Center to stop the refund.

Note: A TC 846 on IMF tax accounts cannot be intercepted. Implement Erroneous Refund procedures immediately.

(1) Manual Refund Inventories: Each Center is responsible for reporting the volume of Manual Refund receipts on a weekly basis utilizing the MISTLE report. All manual refund documents received in the Accounting function must have the Business Operating Division (BOD) indicated.

1. The refund volumes will be reported according to the initiating BOD’s that are indicated on the MISTLE report.

2. See IRM 3.30.124, Center Monitoring Reports for instructions on how the report must be completed.

(2) Manual Refund Paper Check Volumes: Accounting Headquarters gathers information on the amount of manual refunds processed as paper checks for IDRS Generated refunds (Form 5792 ), PHOREF and Non-IDRS Miscellaneous including URF and XSF (Type A) refunds. Therefore, monthly reporting from the sites is required.

1. HQ’s will send a reconciliation spreadsheet to the sites monthly. Each site is to validate whether or not the schedules were processed for the month that BFS has reported on the bill.

2. Responses are due back to HQ’s within three business days of the request.

3. Send the response via e-mail to: Manual Refund Headquarter Contacts.

(3) Manual Refund Fiscal Year Volumes: to keep track of resource utilization and analyze program effectiveness, the total volume of manual refunds processed, and expenditures are required.

1. Use the “FY (XX) Manual Refund Volumes and Amount” report that can be obtained from the SP, ATP, Branch Manual Refund Project SharePoint site Manual Refund Project - Home (sharepoint.com) within the Manual Refund Misc. Documents folder.

2. This information is to be reported, on a quarterly basis, no later than the 15th day of the month following quarter end.

3. The tabs are site specific. Complete the quarterly information and send the report via e-mail to: Manual Refund Headquarter Contacts.

(1) Management appoints and delegates authority to specific persons to sign and authorize manual refunds (Form 3753 and Form 5792).

1. Employees authorized to sign manual refund requests must not be the same employee authorized to adjust and/or initiate a request for manual refund on any one refund transaction for a taxpayers account.

2. Also see IRM 3.17.79.1.11, Authorized Signatures and Delegations of Authority.

(2) All Heads of Office (Directors, Area Directors, Field Directors, Executive Directors, Local Taxpayer Advocate (LTA), National Taxpayer Advocate (NTA), etc.) must submit the latest revision of Form 14031, Manual Refund Signature Form to Submission Processing Center, Accounting, Manual Refund Function (Refund Disbursement Team) delegating those persons authorized to sign and approve manual refund requests. New requests must be submitted to the appropriate submission processing site’s accounting operation for processing (see chart below). Persons delegated to sign manual refund requests at multiple site locations, must submit a Form 14031 to each Center to gain access. The Form 14031 must contain the authorized manual refund approver information in Section II of the Form 14031 with the accompanying digital signature. e-mail (see chart below) the Form 14031 in PDF file format to the Submission Processing Center, Accounting, Manual Refund Function’s Organizational Mailbox located at the servicing Center (see chart below).

(3) The Manual Refund function must 100 percent review the Form 14031 for accuracy and to ensure all required data is present as indicated on the Form 14031 instructions.

1. Per Delegation Order 3-1 (formerly DO-40), Credits and Refunds located in IRM 1.2.2.4.1, the Form 14031, Section III, must contain the signature of the Head of Office (Area, Executive Director, Field Director, LTA, NTA, etc.) of the requesting office. This authorization cannot be re-delegated - See IRM 13.1.4.2.2.1 for Delegation Order 3-1 (Rev. 2), which gives authority to approve the DISBURSEMENT of funds.

2. The Form 14031 must be digitally signed with Valid digital signatures, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened - See IRM 3.17.79.3.5.5, Manual Refund Digital Signature Requirement.

3. The digital signature HOO name is stated in the Accounting Refund Function Spreadsheet (current spreadsheet) - See 3.17.79.3.5.2(2).

4. New requests are processed by Accounting Operations within 2 business days (i.e., received date plus 1 business day) of receipt.

5. The Accounting Operation Received Date is documented in Section IV (Accounting use Only box) on the Form 14031 when received in the Manual Refund function.

6. The Accounting Operation RSTRK(M) Input Date is documented in Section IV (Accounting use Only box) on the Form 14031 when received in the Manual Refund function.

7. Date fields (Section II, M and Section III, Q) Leave blank: The Manual Refund Approver digitally signed date is no longer required, since the date is part of the digital signature.

8. The authorized approving official digital signature date and timestamp (Form 14031, Section II) must be on or before the delegating official (Head of Office) digital signature date and including timestamp (Form 14031, Section III).

9. The pseudonym line is blank unless back-up documentation is attached as required per IRM 3.17.79.3.5(8)n, Employees Authorized to Sign Requests for Refunds.

10. The Director or equivalent in Section III of the Form 14031IS NOT the manual refund authorizer in Section II on ANY Form 14031.

11. The individual that is designated to act for the HOO types the head of office position title on Form 14031, Section III, item N while serving in that capacity (i.e., acting Director of AM, acting Director Examination, etc.).

(4) A Form 10247, Designation to Act is valid in the absence of the Director or equivalent. An accurate and complete Form 10247 must be submitted with EACH Form 14031, when Section III of the Form 14031 is digitally signed by a designated official. Ensure the following:

1. The Form 10247 is digitally signed with a valid digital signature, include the SEID and Name of the signer, and be systemically validated when the Portable Document Format (PDF) file is opened - See IRM 3.17.79.3.5.5.

2. The digital signature date (including timestamp) in Section III of Form 14031 is within the From and To date on the Form 10247 when signed by a designated official.

3. The Form 10247 digital signature date (including timestamp) is prior to the From date on the Form 10247.

4. If the HOO submits a Form 10247 to designate an actor, ensure that the form is digitally signed by the existing HOO and If the existing HOO is not available, that the HOO at the next higher level digitally signs the request in their absence.

   Note: The current Accounting Refund Function Spreadsheet must be used to verify the existing HOO - See IRM 3.17.79.3.5.2(2)

   Note: Form 10247 is not necessary for an interim Director when accountability has been transferred.

(5) If a Form 14031 is received and there is already an "ACTIVE" form on file, for the same individual in Section II, the new form is a duplicate and must be rejected. A removal request for an active Form 14031 must be received prior to accepting a new Form 14031. Send notification, via e-mail, to the individuals in Section II and Section III, that the Form 14031 is being rejected due to either the Form 14031 is currently on file for a different BOD or Form 14031, Manual Refund Signature Form is currently on file for the same BOD.

(6) When the 100 percent review of the form is complete, forward to the designated employee with the capability to add employee profile restrictions using IDRS CC RSTRK(M). The designated employee must also review the Form 14031 for completeness and accuracy prior to adding the profile restriction to the Manual Refund Authorizer through use of IDRS, CC RSTRK(M). When the profile restriction is completed the Manual Refund Authorizer will reflect on the IDRS RSTRK(M) listing. This action must be performed within 2 business days (i.e., received date plus 1 business day) of the Accounting Operation received date. The designated employee with IDRS CC RSTRK(M) must document the date the profile restriction action was taken in Section IV (Accounting Use Only box) on the Form 14031.

(7) A request for removal of an "Active" Form 14031 must be submitted to the Accounting, Manual Refund function by the Head of Office by e-mail. In the absence of the Head of Office, the authorized approving official must request the removal. The request for removal should be received in Accounting within two business days (i.e., received date plus one business day) of the requested removal date. Accounting must remove the Active Form 14031, Manual Refund Signature Form within two business days (i.e., received date plus one business day) of request receipt. The Authorized Approving Official in Section II of the Form 14031 must be a management official (Non-bargaining employee). Section II of the Form 14031 is authorizing the "REQUEST" for a manual refund.

(8) The Manual Refund function maintains a Form 14031 file of all employees authorized to approve refunds. This file will contain the following information, which is included on the Form 14031 :

1. Section I, a: Name of the Submission Processing Center you will send Form(s) 3753/5792 to for processing

2. Section I, b: Input month (written out) and year in which the signature will become valid

3. Section II, c: Name of Authorized Manual Refund Approver (must be NBU)

4. Section II, d: Title of Authorized Manual Refund Approver

5. Section II, e: e-mail Address

6. Section II, f: Mailing Address

7. Section II, g: Telephone Number

8. Section II, h: Business Operating Division

9. Section II, i: Campus or Field Office Location (i.e., Fresno - AM)

10.  

11. Section II, j: Social Security Number (SSN) and SEID

    Note: May submit under separate cover. SSN is required for IDRS Manual Refund Restriction.

12. Section II, k: Digital Signature of Manual Refund Approver in Section II, c above - See IRM 3.17.79.3.5.5.

13. Name of Authorized Manual Refund Approver

Note: The printed name in Section II, c and digital signature name in Section II , k above must Exactly match (including: upper and lower case, spacing, etc.). Any punctuation in the signer’s name must also match with the exception of a period following an initial which is optional. See IRM 3.17.79.3.2.3, Manual Refund Digital Signature Requirement.

Note: The digital signature format used on Form 3753, Section V, item 1 and Form 5792, Section IV, item 4 must include a valid HSPD-12 Digital Signature that includes the SEID and Name of the approving official on the active Form 14031 - Section II on file - See IRM 3.17.79.3.5.5.

14. Section II, l: Pseudonym (Print Only) (Copy of e-mail from Office of Privacy)

    Note: Approval e-mail from the Office of Privacy must state: Person’s legal name XXXXX approved to use pseudonym XXXXX as of date XXXXX).

15. Section II, m: Date

    Note: Leave blank: The Manual Refund Approver digitally signed date is no longer required, since the date is part of the digital signature.

16. Section III, n: Digital Signature of Head of Office - See IRM 3.17.79.3.5.5.

17. Section III, o: Printed Name of Head of Office

18. Section III, p: Printed Title of Head of Office

19. Section II, q: Date

    Note: Leave blank: The Manual Refund Approver digitally signed date is no longer required, since the date is part of the digital signature.

20. Section IV, r: Mail Form To:

    Note: The Mail Form To: information is no longer required since the documents are electronically submitted to Accounting.

21. For Accounting Operations use only:
    Received date
    RSTRK input date
    Scan to SharePoint date (Leave Blank)
    RSTRK removal date (Leave Blank)

22. Section III contains the statement certifying that IDRS Combination Sensitive Command Codes are no longer authorized for the employee listed to sign requests or certify refunds is referenced in IRM 3.17.79, Accounting Refund Transactions and IRM 10.8.34, IDRS Security Controls.

    Note: Site functions are responsible to remove any IDRS Combination Sensitive Command Codes for authorized approvers prior to submitting Form 14031, to the Accounting function. The Accounting Operation, Unit Security Representative (USR) is responsible to add the manual refund approver to the IDRS Manual Refund Restriction list, by input of CC RSTRK (M) (Manual Refund Restriction via IDRS), after completion of the Form 14031, is 100% reviewed for accuracy and completeness. The Accounting Operation, USR is also responsible to input IDRS restrictions for authorized Certifying Officers. All Certifying Officers must be input to the CC:RSTRK (M) listing.

(9) The Manual Refund function will maintain a Form 14031 repository file, on the SP, ATP, Manual Refund Project SharePoint site at the following link: Manual Refund Project - Home (sharepoint.com).

Note: Forms 10247 (in PDF format) must be digitally signed and maintained in the repository - See IRM 3.17.79.3.5.5.

1. The SP, ATP SharePoint site is only accessible by Submission Processing, Accounting designated personnel. Access to the Manual Refund Project SharePoint must be requested through BEARS. See IRM 3.17.79.1.1.3.

2. The Form 14031, repository file instructions are located and accessible on the SP, ATP, Manual Refund Project SharePoint site Manual Refund Project - Home (sharepoint.com). All original Forms 14031 in PDF format must be uploaded onto the SharePoint Site repository file upon acceptance in the Accounting function.

   Note: The SharePoint repository file must reflect the same information as the "ACTIVE" hardcopy maintained in Accounting. No modifications are allowed on the Form 14031, see paragraph (3) above

   .

3. Accessing the SharePoint site, Form 14031 repository file, allows electronic verification of the manual refund approving official digital signature - See IRM 3.17.79.3.5.5. All paper Forms 14031, will be maintained and secured at each site and must be used for contingency purposes. When a Form 14031 is removed from the active approving official file, all inactive Forms 14031 will be maintained, secured and available for review by internal and external stakeholders for one year in the active file during the processing year and then for five additional years in the retention file.

4. The following naming convention will be used to upload the Form 14031 and Form 10247 (if applicable) to the ATP SharePoint site in PDF format:
   Form 14031: SEID, Last Name (example: 00ABC Jones).
   Form 10247 (if applicable): SEID, Last Name (Form 10247)(example: 00ABC Jones (Form 10247).

(10) The uploaded documents will be stored by calendar year (i.e. 2021, 2022, 2023, etc.) and will be destroyed 5 year(s) after the end of the processing year.

(11) Refund requests originate in all Sites, Areas, Territories or other field offices. It is the responsibility of the Directors and Heads of Office (including National Directors of Appeals and Taxpayer Advocate Service), of the requesting office, to establish and enforce internal controls. Please see IRM 1.4.6.3(6), Responsibilities of Service Officials Managers and Employees, which describes how to maintain effective controls to prevent fraud, waste or abuse of Government resources and mismanagement of Service programs. This is also known as Separation of Duties. This requirement includes formality to delegate authority to appoint management officials authorized to sign manual refunds (Form 3753 and Form 5792). It is the responsibility of Directors and Heads of Office (including the National Directors of Appeals and Taxpayer Advocate Service) to update lists of employees authorized to approve refund requests when personnel changes occur. Failure to do so will jeopardize or delay approval and issuance of requests for manual refunds by Submission Processing Accounting Operations.

1. When the employee's authorization is revoked, the name must be withdrawn from the signature list in the Manual Refund Function.

2. Form 14031 must be submitted to and accepted by the Manual Refund function when adding new employees prior to their approving requests for manual refunds. The Form 14031 must be submitted to Accounting within 2 business days (i.e., received date plus 1 business day) of the requested “active” date.

3. Heads of Office Management Officials must update signature lists within 2 business days (i.e., received date plus 1 business day), when personnel changes occur. The Manual Refund function solicits, quarterly, from all Directors or Heads of Office located in their processing jurisdiction to purge the list of employees no longer authorized. This solicitation must occur quarterly (refer to dates in item (6) above).

(12) Directors (for example, of Appeals and Taxpayer Advocate Service) provide guidance to their field offices regarding authorized signatures for the purpose of approving manual refunds.

1. Directors of Appeals request manual refunds and apply existing criteria, e.g., refunds over $1 million, refunds issued to one spouse, and other systemic limitations.

2. Initiators of manual refunds in Appeals and Taxpayer Advocate Service must be trained and take the same precautions to prevent duplicate refunds.

3. All initiators will be held to the same level of management scrutiny and responsibility to maintain internal controls and follow all IRM requirements.

(13) The Manual Refund Function reviews the approving official's signature on the manual refund posting voucher (Form 3753 or Form 5792), before preparing the Secure Payment System (SPS)/Check Payment Schedule or Form 1166, Voucher and Schedule of Payments.

1. If the request contains an unauthorized signature, the Manual Refund Function will reject, see IRM 3.17.79.3.2.2. However, Submission Processing Center personnel are reminded to please exercise good judgment in the rejection of these cases.

2. If the refund involves a hardship case, Taxpayer Advocate Service case, or a large refund which will result in the Service paying a large amount of interest, the Certifying Officer will call area involved to resolve signature concern to allow processing of manual refund request.

3. The receiving Submission Processing Center contacts the Submission Processing Center having jurisdiction over the local area initiating the Form(s) to verify the person who signed the forms is authorized to do so.

4. If the employee is an authorized official, process the refund as outlined above.

5. If the employee is not authorized, reject (See IRM 3.17.79.3.2.2).

(14) A Non-Master File abatement on an Appeals case will take place in a local office, not under the jurisdiction of the Submission Processing Center, where the related account is filed. When this occurs, the local office will route Form 1331-B (for abatement), and Form 3753 or Form 5792 (for the refund portion), to the Submission Processing Center maintaining the account. The management official signing theForm 1331-B, Notice of Adjustment, Form 3753 or Form 5792 in the originating or field offices, must be on the list of authorized officials to sign manual refunds. The list of management officials is maintained by the Submission Processing Center.

(15) Non-Master File is centralized to Kansas City. New assessments and or documents that must be established on NMF must be sent to Kansas City using the following address:
Kansas City Submission Processing Center
Accounting NMF
333 W. Pershing Rd. - Stop 6263 P-6
Kansas City, Missouri 64108

(16) Further information is available in IRM 1.4.2, Monitoring and Improving Internal Accounting and Administrative Controls.

(1) Generally, large refunds of one million dollars or more are the result of a Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, or carryback losses. Each Submission Processing Centers (SPC) must make every effort to identify and manually issue these refunds within 45 days.

1. Analysis at Master File, Enterprise Computing Center (ECC) - Martinsburg, reveals an overpayment of $10,000,000.00 or more, principal and interest, the module is frozen from refunding or offset (and sets an -X freeze).

2. Refund transcripts generate to the respective SPC for expedite account resolution.

3. Output or Notice Review researches accounts and prepares Form 3753 when large dollar refund transcripts generate. Form 3753 are submitted to Accounting.

4. The "-X" freeze is released when a TC 840 posts with a dollar amount or if module balance becomes zero or debit. This occurs once the Form 3753 is processed through ISRP to reflect posting of the manual refund issuance (TC 840).

5. IRM 20.2.4.7.7, Manual Refunds, instructs all employees to review manual refunds over $1 million by an interest specialist prior to submitting to Accounting.

6. IRM 21.4.4.6, Other Manual Refund Requirements, mandates that manual refunds $1 Million or more and contain overpayment interest be reviewed by a Technical function. See IRM 21.4.4.5, Preparation of Manual Refund Forms for additional information.

7. In addition to the Compliance Frivolous Filer Program, the Scheme Development Center (SDC) uses a multi-functional approach to decrease the number of refunds released that may be questionable. See also IRM 4.19.10.5, Questionable Refunds, and related processing in IRM Part 4, Examination.

(2) Submission Processing Accounting Operations prepares and certifies refund schedules (e.g., via Secure Payment System) to issue refunds of $10 million or more. When a taxpayer is entitled to a refund that totals $10 million or more, the following occurs:

1. Returns are math verified for accuracy by the Reject function.

2. A special search determines if the taxpayer has any outstanding MF, Debtor Master File (DMF), or NMF liabilities. If any outstanding liabilities are found, take action to offset available credit.

3. If a "-L" freeze (AIMS indicator) is present on a module, research the account for the presence of a history item or activity code "MAAS (MMDDYYYY)." This indicates that a "quick assessment" has been requested, and that a new liability may be in the process of posting. If the assessment (TC 300 for other than .00) increase has not posted, contact Examination for the amount of the additional liability. Satisfy this liability prior to issuing a manual refund.

4. If a -L Freeze and AIMS Status Code is other than 00 through 06 or 08

5. Any refund of $10 million or more for IMF, and $100 million or more for BMF, must be issued as a manual refund. Refunds under these amount are systemically generated on IDRS with a posted transaction code TC 846 unless a manual refund is required for another reason.

6. Prepare SPS or Form 1166. Master File cannot post amounts in excess of $99,999,999.99. However, more importantly, the BFS, check processing equipment cannot process refunds via IDRS in excess of $99,999,999.99 due to check printing and check paper money amount field limits. If refunds exceed this limit, it must be issued as two or more refund checks. See IRM 21.4.4.

(1) Treasury and IRS CFO are required to be notified whenever they have a single refund or several refunds with aggregate total of $50 million dollars or more scheduled for payment on any given day.

1. The Manual Refund Team will provide Treasury a two (2) day notification whenever a single refund or several refunds with an aggregate total of $50 million dollars have been received for processing.

   Note: The calculated interest on the manual refund must be at least 2 days in advance so that the refund team has time to make the notification to Treasury.

2. The Manual Refund Team will provide Treasury a five (5) day notification whenever a single refund or several refunds with an aggregate total of $500 million dollars has been received for processing.

   Note: The calculated interest on the manual refund must be at least 5 days in advance so that the refund team has time to make the notification to Treasury.

3. Submission Processing Centers will notify Treasury via e-mail ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡when large dollar refunds meet respective thresholds, $50 million dollars and over or $500 million dollars and over. The Treasury and IRS Contacts below must be included in the e-mail notification:

(2) This advance reporting requirement is due to Treasury's funds flow monitoring and is sent to the Fiscal Assistant Secretary, Office of Fiscal Projections, and the IRS CFO Office of Financial Revenue Systems, OS:CFO:R:S. See IRM 3.17.79.3.4, Manual Refund Report to Headquarters CFO - Weekly.

(3) The e-mail notification must include the following information:

1. ACH/Direct Deposit
   IMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount
   BMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount

2. Checks/Paper
   IMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount
   BMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount

3. Fedwire
   IMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount and Process date
   BMF - Volume, Principal= Money Amount, Interest = Money Amount, Grand Total = Money Amount and Process date

(4) As outlined in the Treasury Financial Manual (TFM) Volume 1, Part 4, the prior 2 or 5 day notification to Treasury will ensure funds are available to cover the refund amounts in the Federal Reserve.

(5) When manual refunds of $10 million or more are issued maintain a file for possible future reference.

(6) Prepare and process manual Form 1166/Secure Payment System (SPS) refund schedules as outlined in IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

(1) When Treasury requests the Accounting Function to hold refunds, schedule and issue refunds on a first in and first out basis based on Treasury's threshold.

(1) The Accounting Function should not receive taxpayer refund inquiries. In case this happens "DO NOT" give the taxpayer or their representative a specific Refund Schedule Date or use the word "Schedule" in your response. Once it has been determined that the caller is authorized to receive taxpayer information, use the following guidelines:

(1) Business and individual taxpayer’s due refunds of $1 million or more for any single tax year may request a direct deposit refund (e.g., automatic) directly into their bank account. The Automated Clearing House (ACH) Screen in the Secure Payment System (SPS) used by Accounting to certify manual refunds is for use in hardship conditions. This is considered exception-processing, and is a risk of disbursement losses because of human intervention and potential error. However, ACH feature requires unique software screen access by Accounting employees and set-up administered by the Bureau of the Fiscal Service SPS software support staff.

(2) Treasury's Financial Organization Master File (FOMF) is designed to administer funds from Kansas City Bureau of the Fiscal Service and the Federal Reserve Board (FRB). Per Headquarters Regional Operations Directorate, Bureau of the Fiscal Service (BFS), in June 2003, describes the FOMF as follows:

1. Enterprise Computing Center (ECC) - Martinsburg, receives the FOMF from BFS via the Federal Reserve Board each month. The FOMF contains all current bank Routing Transit Numbers (RTN) and addresses.

2. ECC uses this file to validate the RTNs for taxpayers that request an electronic funds transfer (EFT) or direct deposit refund. When BFS receives the IRS EFT refund files, BFS validates the files against the current FOMF.

3. The Secure Payment System (SPS) includes enhancements that allows RTN verification during the certification of refunds. If the RTN fails validation the refund will be sent back to the IRS for correction or submission as paper check.

(3) The taxpayer must complete the appropriate documents if they desire a direct deposit refund. In rare instances, the Service will opt to use the SPS Screen FEDWIRE Same Day Pay Refund SPS screen or the International Treasury Services (ITS) system.

(4) If the taxpayer's financial institution is not a member of the Federal Reserve System, the funds transfer is processed through a correspondent bank (Foreign or International) that maintains an account at a Federal Reserve Bank. These type of refunds are processed by the Accounting staff at the Centers that process International work (Ogden, Austin, Cincinnati). These types of refunds are considered exception-processing and occur on an as needed basis only.

(5) For example, and for any amount, business taxpayers file Form 8050 Direct Deposit of Corporate Tax Refund (Rev. 12–2009) with their business tax return.

(6) IMF taxpayers requesting a Direct Deposit refund provide the pertinent information when filing Form 1040, U.S. Individual Income Tax Return. The RTN and account information (savings or checking ONLY) is entered directly on the Form 1040 by the taxpayer, and transcribed during data entry; no separate request forms are required.

(7) Federal Agencies or bureaus within Federal Agencies requesting Direct Deposits will provide the governing memorandum or agreement with all the pertinent information needed for the disbursement of the manual refund to be directly deposited.

(8) A Branded Prescription Drug Fee manual refund request, to be processed through direct deposit, will be received on a Form 3753. This request will have two documents attached. A “Letter of Overpayment” and “Amount Due to Covered Entity”. These documents are acceptable as supporting documentation for processing the manual refund. SeeIRM 25.21.1.13 for specific details related to the Branded Prescription Drug fee.

(1) Receipt and Control Operation (RCO) receives and date stamps Form 4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax. Then RCO forwards stamped Form 4466 to the Accounting Operations for processing.

(2) Form 4466 will be transshipped to the appropriate Business Master File (BMF) processing site as outlined in the official Transshipment guidelines.

(3) When Form 4466 are received:

1. Reject Form 4466 quick refund requests submitted for trusts or estates. Quick refunds for trusts and estates are not allowed.

2. Rejected/disallowed Form 4466 for estates or trusts must be communicated to the taxpayers via IDRS Correspondex 1287C letter. Accounting will respond to correspondence returned to the function from taxpayer.

3. Review documents and ensure Form 4466 submitted for processing is solely for corporate returns (IRC 6425, exception for corporations only). Per the Reg. 1.6425-1(b) (2), Form 4466 is not considered a claim for credit or refund.

4. Expedite processing of Form 4466 is required. The refund must be issued within 45 days of the received date.

5. Immediately upon receipt of Form 4466, use IDRS CC ACTON to place documents under case control. See IRM 2.3.12, Command Code ACTON. Control cases using activity code "Form 4466".

   Note: If the return has already been filed when the Form 4466 is received by the Accounting Function for processing, the Form 4466 will be rejected to the originator.

(4) Reject Quick Refund requests submitted on Form 4466 for Foreign Investment Real Property Tax Act, Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests, and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (FIRPTA, Ogden only). Send with a letter of explanation. The letter of explanation must contain the following information:

We are sorry, but we are returning your Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax.

Form 4466 does not apply when requesting a refund on Foreign Interest Real Property (FIRPTA) credits. You must submit Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, a copy of Form 8288-A (copy B) signed by the Agency, and a copy of the Withholding Certificate to the Internal Revenue Service , Ogden, UT 84201.

If you have any questions regarding FIRPTA payments, please write to the attention of the FIRPTA function or you may call them at 267–941–1000, this is not a toll free number.

(5) Review the Form 4466, and verify following items:

1. TIME FOR FILING a Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, is generally after the end of the corporation’s tax year, and no later than the due date for filing the corporation’s tax return (not including extensions). An application under this subsection shall not constitute a claim for credit or refund. (Filing Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, does not extend time for filing Form 4466, the Form 4466 will be considered timely if received the day following a due date which falls on a holiday or a weekend ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, or if the envelope contains a timely date stamp which is prior to the due date). Hold in a suspense file all Form 4466 received up to two weeks prior to the close of the taxable year. Normal processing must begin on the first day after the close of the taxable year. If the tax year ending month is different than the established accounting period, initiate research of the Form 1128, Application to Adopt, Change, or Retain a Tax Year, file maintained by Entity Control. If a request or change of accounting period is submitted with Form 4466, Entity Control inputs Command Code BNCHG to correct the accounting period prior to issuance. Only the common parent, as agent for the consolidated group, will file a Form 4466 for members of an affiliated group that paid their estimated income tax on a consolidated basis (or expect to file a consolidated return for the tax year). See Regulations 1.1502-75(d)(1).

   Note: If a subsidiary member of a consolidated group paid estimated income taxes separately for a separate return filing, that member who claims the overpayment must file Form 4466.

   A corporation filing under the Consolidated Return Regulations is not required to submit a Form 1128 or request a change in accounting period IF, AND ONLY IF, a statement is included with Form 4466 specifically stating that the corporation is filing under the Consolidated Return Regulations. The statement must cite the appropriate section of the Regulations 1.1502-76(c)(2) and 1.1502-75(d)(1). Reject the application if Form 1128, Request for a Change in Accounting Period, or a statement is not present.

2. A Form 4466 is valid if line 8 is at least 10 percent of line 7, expected income tax liability, and at least $500.

   Note: Form 4466 is not considered a claim for credit or refund (justification for lines 5a and 5b).
   Determine if Line 7 is correct (Line 6 minus Line 4), if yes, then refund line 8.

   Note: All fuel credits must be claimed on the appropriate excise tax forms.

3. Verify that there is a Master File account for each taxpayer.

4. If the Form 4466 filer is a subsidiary of a corporation which elected to file a consolidated return, the filing period is that of the parent for credits included in the consolidated return.

(6) If Form 4466 is rejected:

1. Access IDRS CC ACTON to update the activity code to "4466REJECT".

2. Prepare single Form 3753, to input TC 840 for zero amount to release X Freeze Code when the return posts. Update control base to TC 840 input. Circle in red TC 770, to prevent "I" Freeze. The transaction code for zero will indicate a claim for refund was received but not processed.

3. Send IDRS Correspondex Letter 1287C to the taxpayer. Update control base activity as: 1287CSENT.

4. Close control base after Form 3753 TC 840 .00 amount, 1287C letter sent, etc.

5. Photocopy Form 4466 and return the original to the taxpayer along with the letter of explanation.

6. Keep a pending case file containing the photocopy of rejected Form 4466, the 1287C letter, and any research for 90 calendar days, then destroy the case file.

(7) The date for filing Form 4466 coincides with the dates for filing corporate returns, which is on or before the 15th day of the 4th month after the end of the tax year (but before the corporation files its income tax return). For instance:

1. For calendar year corporations with a tax year that ends December 31, 2023, the due date would be on or before March 15, 2024.

2. For a fiscal year corporation with a tax year ending October 31, 2023, the due date would be on or before January 15, 20249.

(1) Accounting receives verified Form 1040-NR, U.S. Nonresident Alien Income Tax Return, Dual Status Form 1040, and Foreign Corporate Returns, Form 1120-F. Both returns require withholding of tax on allowable interest and the preparation of Form 1042-S and Form 5205. Form 1042-S and Form 5205, Information About Your Income Tax Refund, are prepared by the originator of the Form 5792 / Form 3753 prior to routing to Accounting. Originators will input a TC 770 to the taxpayer's account for the amount of interest withheld and prepare a Form 3809 to transfer the credit (TC 770, amount of interest withheld) from the Master File to the 4610 Account. Form 3809 accompanies Form 1042-S, Form 5205 and the refund document (Form 5792 / Form 3753).

1. Returns arrive in Accounting Operations with the country code and tax rate indicated at the bottom of the return.

2. All dual status returns, non-resident alien returns, and foreign corporation returns are rejected to Accounting Operations. If a zero or no withholding rate is shown on the return, reject the return to the Error Correction function for re-input, if the manual refund is not required for any other reason (e.g., to release a freeze conditions, etc.).

3. Follow instructions for processing a manual refund in IRM 3.17.79.3.2. Generally, these are IDRS generated refunds on Form 5792.

4. Prepare Form 5792 or Form 3753 as necessary.

5. Compute the withholding tax on the allowable interest using 30 percent or the treaty rate, as applicable.

6. Subtract the amount of withholding tax from the net amount of the refund.

7. Input TC 770 for the amount of interest withheld (30 percent of the treaty rate), as applicable. Input TC 290 for zero, TC 770 for the amount of interest withheld, Hold Code (HC 2) to hold notices and credit until TC 820 posts. Cycle delay (CD) 4 to delay posting of TC 290 and TC 770 until the TC 150 posts.

8. Prepare Form 3809 using TC 820 on the debit portion, for the amount of interest withheld, and TC 700 for the credit portion to the 4610 Account. See IRM 3.17.243, Miscellaneous Accounting, for more information on preparation of transfer documents.

9. NMF- Prepare Form 3809 for the amount of interest withheld (30 percent or the treaty rate), as applicable. Input TC 770, Credit taxpayer's NMF account; Debit 6520 Account.

10. NMF- Prepare Form 3809 using TC 772 on the Debit portion for the amount of interest withheld; use TC 700 for the Credit portion to the 4610 Account.

(2) Form 5205, in four parts, are routed as follows:

1. Mail the original Form 5205 to the taxpayer. Associate Form 5205 with the related Form 1166/SPS refund schedule.

2. Attach Form 5205, Part 2, to Form 3809 (credit side) going to the 4610 Account. Forward Form 3809 for numbering and further processing.

3. Forward Form 5205, Part 3, IRM 3.17.79.7.2

4. Attach Form 5205, Part 4, to the tax return along with Part 3 of Form 5792 or Form 3753.

5. Accounting Operations monitors the account until all transactions post.

6. The RRACS area inputs the refund, principal and interest and related journal actions.

7. Transfer the amount withheld from interest paid to the 4610 Account, Unapplied Advance Payments, via Form 3809. This is held in escrow until the withholding agent's return is filed (See IRM 3.17.79.6.2).

8. Credits accumulate and are transferred monthly in a lump sum by Accounting Operations, from the 4610 Account to the withholding agent's account on the Master File using Form 3809 and posting a TC 700.

9. Part 3 of Form 5205 is maintained in the appropriate area as outlined in IRM 3.17.79.6.2. Balance the Form 5205, and the monthly lump sum transferred from 4610 Account to the withholding agent's account.

(3) If the accounts have been under Examination, and the Assessment Statute on the module has expired:

1. Make an NMF assessment

2. Apply a TC 770

3. Transfer transaction to the Master File on Form 514-B, Tax Transfer Schedule.

(4) Process manual refund documents, Form 5792 and Form 3753 according to instructions in IRM 3.17.79.3.2.

(1) At times, a manual refund must be issued due to a court decision with no evidence of credit. These refunds are processed on the form that is most appropriate (example Form 3753 or Form 5792). The documents reflecting the court decision serve as authority for making the refund.

(2) When a court decision requires the Government to pay court costs or fees to the taxpayer, that amount is issued by GAO. IRS should never include court fees in the amount of a tax refund.

(3) Specific instructions are located in IRM 5, Collection Special Procedures or Technical Support for Small Business/Self Employed Business Operating Division.

(1) At times, manual refunds must be issued as a result of a loss or shortage to approved lockbox banks/depositories.

1. These manual refunds must be requested on Form 3753.

2. Documents supporting this are received from the Bureau of the Fiscal Service and provide credit substantiation for making these refunds. These are reimbursement payments to financial institutions, not to taxpayers.

(2) Specific processing instructions are in IRM 3.0.230, Lockbox Processing Procedures.

1. Form 3753 will be initiated by Lockbox Coordinators or their designees.

2. Only specific sections of the Form 3753 will be completed.

3. No payee ID (TIN) will be indicated.

4. No MFT or Tax Period will be shown.

5. No interest will be paid on reimbursements.

(3) Form 3753 indicates:

1. Charge Appropriation 20X1807;

2. Refund from Account 6910;

3. "Lockbox Reimbursement" at Item # 5, Other Remarks.

(4) Requests must be reviewed by an authorized Approving Official prior to processing. IRM 3.17.79.1, IRM 3.17.79.3.2, and IRM 3.17.79.3.5 for specific requirements.

(5) Accounting prepares the refund schedule, SPS or Form 1166, Voucher and Schedule of Payments.

• Use "L" definer when preparing refund schedule numbers.

• Enter Submission Processing Center Agency Location Code (ALC).

• DO NOT forward for posting to MF or ANMF. Do not check for outstanding liabilities.

Note: Maintain supporting documentation with the copy of the refund document maintained in the GAO audit file. If no supporting documentation, REJECT (See IRM 3.17.79.3.2.2).

(6) After confirmation of refunds by the RFC, Accounting Operations sends one copy of the refund schedule with check numbers indicated to the originating office or to the Lockbox Coordinator. These are not tax refund payments and must be retained by the Lockbox Coordinator for future research.

(7) Accounting Operations maintains the refund schedule and any substantiating documents in accordance with Document 12990, IRS Records Control Schedules, Also refer to IRM 1.15, Records and Information Management, for further guidance on managing records, in hard copy and electronic format, from creation to disposition.

(1) If the debtor taxpayer account results in an overpayment amount and the accounts are frozen by Bankruptcy, a transcript generates to the applicable Specialty Collection - Insolvency office.

(2) Specialty - Collection Insolvency employees must annotate the following in the "Remarks" when preparing a Form 5792:

1. No pending TC 521 on any tax module,

2. TC 520 MFT/Tax Period, and/or

3. reason for manual refund request (overpayment, levy, trustee payment etc.)

(3) Centralized Insolvency Operation (CIO) and CSCO functions are responsible for the input of CC RFUND.

(4) Submission Processing Accounting Operations is responsible for the input of CC REFAP.

(5) Incomplete or inaccurate Form 5792 cases will be rejected (See IRM 3.17.79.3.2.2).

(1) Under certain hardship circumstances, the Agency will issue manual refunds of excess credits without first satisfying an IRS Outstanding Balance List (OBL). These refunds are known as "Offset Bypass Refunds" (OBR).

(2) Initiators of Offset Bypass Refunds (OBR) must input an Action Code via IDRS Command Code FRM77 to identify that the offset liability was bypassed. TC 971 AC 36 (IRS OBR) is input prior to the TC 840 manual refund.

(3) A Bypass Indicator (BPI) "3" (on SPS, deselect the option "TOP Offset Eligibility") will be used when the OBR is in excess of an existing TOP debt. Refer to Offset Bypass Refunds, in IRM 21.4.6.

1. Offsets regarding Telephone Excise Refund Tax or TETR, see IRM 21.4.6.

2. Offsets regarding Economic Stimulus Payments or ESP, see IRM 21.4.6.

(4) An OBR requires prompt treatment to prevent offset during Master File processing.

(5) The processing date of OBR(s) depends on if there is a freeze code on the taxpayer's account. For qualifying taxpayers with no freeze codes, OBR requests must be received and processed by the local accounting’s cut-off time on the Friday before the 23C date. When the overpayment is held by an IDRS freeze condition (i.e. Path Act C- Freeze or any additional Freeze Codes) or a Clerical Error that is indicated in the Remarks Field of the Form 3753 or Form 5792, the accounting function will process these as requested. Additionally, the initiator must include the exact IRM reference (See IRM 21.4.4.5) down to the exact subsection where it states that the manual refund is an OBR and if stated in the Remarks Field, the subsection where it states if it is an IDRS freeze condition (i.e. PATH Act C- Freeze or any additional Freeze Codes) or a Clerical Error.

(6) OBRs will also be made if subsequent adjustments are made to a tax module. These will include: a payment or credit transfer, an audit tax adjustment, a math error correction and an amended return or claim that is filed and processed. Each will have its own 23C Date. Therefore, the subsequent overpayment can be issued in a manual refund for those taxpayers eligible for an OBR.

(7) Emergency hardship refunds require coordination with Bureau of the Fiscal Service to ensure that a TOP debt is not bypassed. This is needed on Form 5792, Request for IDRS Generated Refund (IGR), and Form 3753. The remarks section must contain the following: "OBR" and the specific reason for issuing the manual refund along with IRM references which apply, notate the Bureau of the Fiscal Service contact name, the date of contact and no TOP debt. Ensure the TC 971 AC 36 for IRS liability is present on the module.

(8) Initiators of OBR manual refunds will attach to the Form 5792 or Form 3753:

1. Evidence of the credit condition to show substantiated overpayment available, this will be either a copy of the unprocessed tax return (including all forms and W-2s) or an IDRS print showing the amount of the overpayment available.

2. A print of TXMOD showing the amount of liability bypassed.

3. The manual refund document must be received no later than the Friday before the current Master File Assessment Document date (23C or Assessment date, which is always a Monday) of the original return.

   Note: Refund documents must be received by the Accounting team prior to manual refund cut off times.

(9) The Manual Refund function will reject Form 3753/Form 5792:

1. If Form 3753/Form 5792 are not received before established cutoff times before the Assessment Document Date (23C) or

2. If the required documentation and written statement in the remarks section is missing from Form 3753/Form 5792, but not before attempting to secure needed documentation in time to process the OBR;

3. If the manual refund document has not been approved by the functional Approving Officer of record and/or the Taxpayer Advocate Liaison or Coordinator in sufficient time to meet the cutoff times.

(10) Initiators of manual refunds must monitor accounts with an OBR: to take actions necessary to stop computer generated refunds (pending transactions via CC NOREF), reverse offsets or take necessary subsequent actions to prevent erroneous refunds or notices from being released.

1. The Manual Refund function employees (approving manual refunds) are not required to research for outstanding balance liabilities (OBLs) on OBR manual refunds when Form 3753/Form 5792 are received from other functions. The originator is required to confirm there are no liabilities prior to initiating manual refunds.

2. Initiator will provide documentation as indicated in IRM 3.17.79.3.17(8), above. Initiators must research accounts for OBL's and attach documentation to Form 3753/Form 5792 routed to Accounting for approval.

See IRM 21.4.4.5.1, Monitoring Manual Refunds.

3. Per IRM 21.4.4.5.1(6) Second Note and IRM 21.4.4.5.2(9) Second Note, Preparation of the Form 3753, Form 3753 and Form 5792 must be reviewed to verify the manual refund is appropriate, proper IDRS research was completed, and the form was completed accurately. The Approving Official's digital signature certifies to the Accounting Function the form was reviewed and is correct.

(1) Refund requests from Account Symbol 20X5433 will be initiated by Examination (Compliance) only.

1. These refunds are not issued from the refund appropriation. These items are not overpayments of tax.

2. Disbursements are authorized by IRC 7623.

3. Case Control Claim Numbers will be assigned by Examination on each item.

4. Headquarters Examination assures no duplicates will occur.

(2) On a case-by-case basis, the Manual Refund function receives requests authorized by the appropriate Compliance Chief.

1. Request is submitted on Form 3753, along with related supporting documentation.

2. Compliance maintains case control and internal controls (e.g., separation of duties).

3. A database was developed to perform future research. Maintain Case or Claim Number, TIN and dollar amount. This is essential in the event a check is returned by the taxpayer (via Standard F1098 as TC 841) or is returned undeliverable by the Postal Service (via Standard F1098 as TC 740).

(3) Supporting documentation consists of:

1. Correspondence from Compliance management official authorized to request payment and providing pertinent information (e.g., 2395 or general ledger account credit and debit instructions, etc.).

2. Form 3753 completed by the requesting office and signed by the authorized Approving Officer.

Note: These Form 3753 are not transcribed by or input through ISRP. These transactions do not post to the Master File.

(4) Compliance completes the following sections of Form 3753:

1. Section I Item 11, General Ledger/Appropriation block 20X5433 Account Symbol; or 20X5433.1.

2. Section II, Item 1c Handbook reference: IRM 25.2, Information and Informants' Rewards.

3. Section II, Item 2d Evidence of Credit Condition: Other, IRC 7623, TBRII 1209;

4. Section II, Item 3, Interest: check box "Not Allowable".

5. Section II, Check applicable box: Necessary supporting documents attached.

6. Cross out entire Section III, Interest Computation.

7. Section IV, Other Remarks: Write Case claim number and DLN where supporting documentation is filed.

(5) Accounting will prepare, schedule and certify Schedule and Voucher of Payments via Secure Payment System (SPS) using R as the definer. See IRM Exhibit 3.17.79–5, Schedule Numbers Format.

1. THESE ARE ADMINISTRATIVE PAYMENTS, NOT TAX REFUNDS. These must be certified to and issued by the Submission Processing Center, Kansas City Bureau of the Fiscal Service.

(6) Accounting will enter via Secure Payment System (SPS) to certify these administrative payment schedules.

(7) Select SPS menu option Miscellaneous Check.

1. Input the Account Symbol 20X5433.1.

2. Input the Compliance Claim Number (from Section V of Form 3753) assigned by Examination in "Remarks" area of SPS. This literal will be printed on the check to identify if it is undeliverable or returned.

(8) Number the document (DLN), prepare Form 813 and attach supporting documentation to SPS refund schedule. Forward to RRACS for journal actions. Retain copies pending confirmation by BFS and RRACS.

(9) Associate the confirmed SPS refund schedule print with the supporting documentation.

(10) Accounting will write the Refund Schedule Number and date of check on Form 3753 then return the appropriate annotated copies of Form 3753 to the originating branch.

(11) Undeliverable and returned checks will be processed using existing instructions.

1. Cancellation credits are returned to the Submission Processing Center Agency Location Code (ALC) addresses via paper Standard F1098 schedule.

2. Forward a copy of the Standard Form (SF)1098 schedule to Compliance (Examination) for research or to be reissued. These actions are only possible when the Examination Case Claim Number appears on the cancellation schedule.

3. Limited Payability (LP) cancellations will occur after 14 months from the check date if the check is not presented to Treasury for payment. LP credits are returned via Form 1081 from TRACS to Enterprise Computing Center (ECC).

4. Cancellations are reversed back to Account 4755, via Form 3245 Posting Voucher, Refund Cancellation or Repayment.

5. Update the Examination Case Claim database showing the check was returned/cancelled. Inform the originating office that the check was returned and for the reason. Compliance may wish to initiate action to reissue or to hold for future reference for inquiries from the recipient.

(1) Ogden Submission Processing Center will process requests from approved Credit Card Processors for chargebacks. This is necessary to reimburse injured processors when credit cards are used fraudulently to pay Federal Income Tax beginning in Tax Year 1998 as well as other reasons as cited in IRM 21.4.4.7.2 (3).

1. Processing instructions appear in IRM 21.4.4.7.2, Credit Card Chargebacks for Credit Card transactions.

2. See list in IRM 21.4.4.7.2(1).

3. Procedures were coordinated between the IRS Electronic Tax Administration (ETA) and Accounts Management staff.

4. These disbursements are governed by regulations under IRC 6311, specifically Treas. Regs. 301.6311-2.

5. Processing is centralized to the Ogden Submission Processing Center only.

(2) Reimbursements occur only when credit card charges are substantiated by the account holders and approved by the pre-authorized signatures of representatives named by the Processor.

1. Backup and supporting documentation from the Processor must be submitted to the Ogden SPC site.

2. See IRM 21.4.4.7.2, Credit Card Chargebacks.

(3) The Ogden SPC site must control cases. Research future requests from the Credit Card Processor to prevent duplicate requests and erroneous disbursements being released.

1. Establish internal controls to prevent duplicate payments.

2. Control cases using a unique case control numbering system. This control number will be associated with all source documentation (e.g., Form 3753, Form 2424, Form 3210, etc.).

3. Maintain case controls. Route cases using Form 3210. Maintain case controls. Route cases using Form 3210. Refer to Document 12900, IRS Records Control Schedule (RCS) 29, Item 91, for the National Archives and Records (NARA) approved retention and disposition of Form 3210.

4. Disbursements are scheduled and certified by the Manual Refund function. If possible, the Refund Schedule number will be recorded on the Form 3210, returned to the originator for appropriate retention. The Refund Schedule number is required in the event IRS must trace disbursements made to Credit Card Processors.

(4) Requests for charge-backs may be accompanied by Form 8302, however, Form 8302 are used only when appropriate.

(5) Supporting documentation must accompany requests as described in IRM 21.4.4. If no supporting documentation, REJECT (See IRM 3.17.79.3.2.2). The Manual Refund function will:

1. Verify that Form 2424 total the grand total refund amount.

2. Verify that the back-up or supporting documentation is attached.

3. Perform other validity checks as appropriate.

(6) Form 3753, will be completed and signed by the designated Approving Official. These types of refunds are small in volume.

1. See IRM 21.4.4.7.2.

2. The Manual Refund function must be able to distinguish these 'claims' and schedule them as an ACH Direct Deposit made to the Processor only.

(7) Form 3753, must be completed as follows because of the unique General Ledger (GL) Account number for the debit. This basically is a manual refund, but used to reimburse the credit card processor. Form 3753 for this purpose are completed as follows:

1. Section I, Account Information.

2. Item 1, Taxpayer Information Number (TIN).

3. Item 3, MFT: Insert "X".

4. Item 6, Name and Address of Taxpayer: Insert "X".

5. Item 10, Make Check Payable to: Insert "RTN and Account Numbers" provided by the Credit Card Processor. Verify RTN and Account numbers with the documentation provided by the Processor. Supporting, back-up documentation must be provided to verify account numbers for scheduling and certifying disbursements.

6. Item 11: Enter Account Symbol 20X1807 and amount.

7. Section II, Manual Refund Authority.

8. Reason, Item 1c, Handbook Reference: Insert "IRM 21.4.4"

9. Item 1d, Other: Enter "IRM 21.4.4, How is a Chargeback Request Processed?, and Federal Register 12/15/98, T. D. 8793, 26 CFR, Part 301."

10. Evidence of Credit Condition: Insert "X, Other, Chargeback for Credit Card Transactions." Transcript of Account.

11. Item 2d, Other: Insert 21.4.4.7.2, Credit Card Chargebacks.

12. Interest: Not allowable.

13. Check box, All items above completed.

14. Check box, Necessary supporting documents attached.

15. Check box for initiating BOD (Business Operating Division)

16. Section III, Interest

17. No interest will be paid on these items.

18. Section IV, Other Remarks

19. Insert: Back-up documentation is attached. List case control unique identifying number here.

(8) Form 3753 will be retained in the GAO file at the Ogden Submission Processing Center.

(9) Ogden no longer requires one Form 2424, Account Adjustment Voucher, per each Form 3753. Remarks section of the Form 2424 will state that the Form 2424 substantiates all items listed on the Form 3210. Control cases. Cross-reference case control numbers will be recorded on the Form 2424, Form 3753, and Form 3210.

(10) The Manual Refund function will indicate the payment schedule date and number on the Form 3210 and the Form 3753. These documents will be returned to the Technical function for retention and research availability. This documentation is required to initiate future tracing actions.

(11) Manual Refund function will compare totals from each completed Form 3753 with the grand totals on Forms from the menu of the Secure Payment System.

1. Disburse from the Regional Financial Center. These are not tax refunds.

2. Certify via SPS, select ACH Option.

3. Disburse from Treasury Account Symbol 20X1807.

4. Use "F" (for ACH Direct Deposits, Ogden Only), as the Refund Schedule number definer.

(1) Once the initiator obtains the necessary approvals and inputs the CC RFUND, a CC REFAP must be input by the Accounting Operation’s Manual Refund function to complete the two-sided entry requirement.

1. The CC REFAP is restricted for use by Submission Processing, Accounting Operation employees only.

2. Employees with CC REFAP in their IDRS profile are restricted from use of a variety of sensitive combination command codes allowing account adjustments.

3. The employee inputting IDRS CC REFAP cannot be the same employee as the employee inputting CC RFUND. IDRS Generated Refunds input via CC RFUND/CC REFAP is a two-sided entry system developed as a security measure. This meets the internal control standard of: Separation of Duties. Employees initiating requests for refund (CC RFUND) cannot be the same employees inputting (CC REFAP) the refunds.

4. Since the two IDRS command codes (CC RFUND/CC REFAP) must be input on the same processing day, all documentation required by the Certifying Officer to support each refund request must be delivered daily (day of input) to the Accounting Operation, Manual Refund function. To ensure timely completion of all actions are taken prior to end of day, a daily cut-off-time is established for receipt of Form 5792 by each Accounting site.

5. If inputting CC RFUND between 6:00 p.m. and midnight local time notate a "Y" in Section IV Box 1 of the Form 5792 along with the number of the employee inputting the CC RFUND (Example: 1234567890 Y). This will alert Accounting that the CC RFUND will have a different date than CC REFAP, but the two command codes were input during the same 24 hour cycle - See IRM 21.4.4.5(6)I.

(2) Review each case individually for completeness prior to input of CC REFAP. Do Not input CC REFAP, if any of the following conditions exist. This list is not all-inclusive:

1. The Approving Official has not digitally signed Form 3753 or Form 5792.

2. The digital signature format used on Form 3753 – Section V, item 1 and Form 5792 – Section IV, item 4 does not include the SEID and Name or e-mail of the approving official on the active Form 14031 - Section II on file.

3. Signature of Approving Officer, on Form 3753 or Form 5792, is not reflecting in the active Form 14031 file and RSTRK (M) listing.

4. If the manual refund requests are not completed with the required information per IRM 21.4.4.4.1 and the research documentation is not attached to the Form 3753 or Form 5792.

   Note: If the initiating BOD, box 21 is not indicated, contact the originator to obtain the information. Mark the appropriate field. If you are unable to contact the originator or determine the appropriate BOD, reject the request.

5. If the name and address on Form 3753/Form 5792 does not match the entity information, and there is no explanation in the "Remarks" field, the explanation must include reason for the different address as well as where the backup documentation will be filed per IRM 21.4.4.5, Other Manual Refund Requirements.

   Note: Injured Spouse, Deceased Taxpayer, Bankruptcy cases must reflect an explanation in the "Remarks" field to include effected tax period and x-reference SSN if applicable.

   Note: In addition to the explanation in “Remarks” field a copy of Form 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer or court document must be included as proof of the refund entitlement for Deceased Taxpayer cases.

6. The refund amount and/or the interest computation is in error. Verify "From" dates and "To" dates are appropriate.

Note: No interest is allowed on unprocessable returns ("U" coded and displays all 9's in the "CRD" field on IDRS/TXMOD. Refer to IRC 6611(g).

7. First name line is made out to the "Deceased Taxpayer."

8. Blocking Series is blank or other than 9, and Form 8379 is attached, or Injured Spouse is indicated in Remarks.

9. Credit offsets moved to a different TIN and/or tax period and not moved back to the appropriate taxpayers TIN and/or tax period. Caution must be used when issuing a refund to a taxpayer with a different SSN/EIN. This can cause disclosure issues, as well as forfeit the proper audit trail. See IRM 11.3.1, Introduction to Disclosure for additional information.

10. If an overpayment is offset and credit-interest is allowed (TC 736), the overpayment interest must be addressed if the offset is reversed.

11. The initiator(s) employee number on Form 5792, Section IV, Block 1 (IDRS CC RFUND in field 12) and/or terminal and pending sequence number. The originating employee may or may not be the same employee inputting CC RFUND. The mandatory IDRS field 12 programming enhancement was based upon findings made by the Treasury's Inspector General for Tax Administration (TIGTA) to improve the IDRS Generated Refund audit trail.

12. A TC 810 (E freeze), TC ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Z freeze) is posted to the tax module or entity module and the case file does not include Criminal Investigation approval for the refund. A TC 790 without Examination approval where adjustment action is involved.

    Note: The -E freeze is no longer used for the Frivolous Return Program. The -E freeze will stay on current accounts until the account is resolved. For future accounts the F- Freeze will be used.

13. An F- Freeze is a Frivolous Return Program freeze set by posting a TC 971-089. Refer to IRM 21.5.3.4.16.7 and/or Doc 6209 Section 8.4 Master File Freeze Codes.

    Note: Effective November 2014, the W&I Compliance BOD is no longer valid due to the realignment to SBSE.

14. The attached return copy is unsigned, or if it is a joint return, does not contain both taxpayers' signatures.

15. If Computer Condition Code (CCC) 3, "U" coded return (Form 1040), or Computer Condition Code X, (Form 1120) is present on IDRS reject see IRM 3.17.79.3.2.2, except when a subsequent adjustment has been input indicating a Return Processable Date (RPD). The RPD must be notated in the remarks and a completed REQ54 screen print showing the RPD must be attached as back up documentation to the manual refund or Computer Condition Code X, (Form 1120) is present on IDRS, reject see IRM 3.17.79.3.2.2. If a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on IDRS reject see IRM 3.17.79.3.2.2, immediately contact the Scheme Development Center (SDC) for review.

16. If a TC 971 AC 664 is present on the IDRS module for the same overpayment, Do Not Process reject see IRM 3.17.79.3.2.2, presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund is in process. Processing the refund request will result in an erroneous or duplicate refund.

17. Examination Branch approval is required if Project Code 21 and an E freeze code exists on the entity. Immediately contact the Examination Branch Pre-Filing Notification Coordinator, if the situation occurs and approval has not been received from Examination or meets Joint Committee threshold of $2 million.

18. -L Freeze and the account has a history item or activity code of MAAS (MMDDYYYY) or TC 971 AC 665, which indicates that an assessment has been requested, and that a liability may be in the process of posting. If the assessment (TC 300) is for other than $.00 amount the increase has not posted. The additional liability must be satisfied prior to issuing a manual refund. Reject if there is no indication this action has been completed. See IRM 3.17.79.3.2.2.

19. -L Freeze if AIMS Status Code is other than 00 through 06 or 08.

    Note: For Carryback Application filed on Form 1045 or 1139 the manual refund can be processed even if there is an -L Freeze. Refer to IRM 21.5.9.5.16.4(1) for authority to allow refunds.

20. Originator's telephone number omitted or incomplete. Originator’s direct telephone number must be used and not a 1-800 Office Number.

21. IF the Refund Statute Expiration Date (RSED) has expired.

    Note: If the RSED is expired, but the Remarks section includes the following notations:  “Timely filed, No RSED Issue” or “RSED allowable”, do not reject and process the form. The statute issue has been cleared by the initiator and the credit is available for refund.

22. If unresolved credit balance modules when the RSED has expired. Areas must coordinate with the Statute function. If assistance is needed in computing the RSED, contact the Statute function.

23. No cross-reference in Remarks where credit source documents are filed (e.g., TIN, tax period and transaction code and TC 971 (or DLN) for Injured Spouse cases, etc.) or Bypass Indicators (BPI) are missing.

24. There are blank areas on the Form 3753/Form 5792 entity area.

25. There is white out, strike through, and/or corrections reflected on the Form 3753/Form 5792 when received in Accounting.

    Note: Some BODs will draw a text box, and contain signature/initial/date etc., on the forms, for intentions of internal reviews only. The text box must be drawn at the bottom of the form in the vicinity of Part I. This is not considered an alteration of the form. Do not Reject in this instance.

    Note: The Accounting Operation, Manual Refund function has authorization to make modifications (strike through(s) only) on the refund document to not cause further delay in processing the manual refund request. (For Example: CC REFAP error occurred, the document needs to be modified, BOD box not checked, signature date not reflected on document). Modifications to the document by the Accounting Operation, Manual Refund function MUST be annotated in RED, initialed and dated.

26. Accounts indicating bankruptcy or litigation Master File freeze. When accounts show TC 520 "-V" or "-W" Master File Freezes, refund requests must be initiated by the Compliance area: Insolvency managers (for bankruptcy freeze) or the Technical Services function (for litigation freeze).

27. The taxpayer account reflects a Refund Hold condition and has not been addressed in the "Remarks" or back up documentation addressing the Refund Hold condition is not attached. See Document 6209, IRS Processing Codes and Information for various freeze conditions that will hold credits from automatic release.

    Note: If a TC 846 is posted on a BMF account for the same overpayment as the manual refund request, a CC NOREF action must be reflected in the control base of the account. If a TC 846 is posted on an IMF account and CC NOREFP has not been initiated (P- Freeze is not on the account), the CC NOREF action will not intercept an IMF refund. CC NOREF is valid for BMF accounts only, when intercepting a systemic refund.

28. Do not reject Direct Deposit Non-Receipt Claim manual refunds blocked 6XX. These are valid manual refunds.

29. Do not reject if account is frozen with "-E" freeze. This is used to release an erroneous levy condition.

30. CC REFAP enables the user to add a prior day indicator "Y" to the input screen, when the CC RFUND was input during the previous processing day evening real-time. Verify CC RFUND, TC 840 input date prior to CC REFAP input to determine if the "Y" indicator is applicable.

31. Do not reject if Box 3 and Box 7 in Section II is not checked for Bankruptcy Insolvency requests. These boxes are not applicable.

32. Form 8038-CP has a CCC “O” edited in green and there is a notation “TEGE – Do Not Refund Credit” or similar written at the bottom of the document.

(3) When review is complete and the Form 5792 is accepted for processing, input CC REFAP. See IRM 2.4.20, IDRS Terminal Input, Command Code RFUND/REFAP. Use of the Integrated Automation Technologies (IAT), Manual Refund tool, is recommended when initiating CC REFAP.

(4) Retain Document Code 45 cases in the functional area by input sequence number within employee number. The next morning associate with Form 5147, IDRS Transaction Record. Retain case files until the list of refunds are certified. When certification is complete:

1. Send Part 1, file copy of Form 5792 with applicable back up documentation to Files to be associated with the Form 5147, IDRS Transaction Record.

   Note: Form 5792 must be sorted into input sequence number within employee number. Place material in folder and indicate the input date and type of input (IGR). Also a copy of each Form 5792 must be attached to the related refund schedule maintained by Accounting.

2. Pull all ANMF transaction records with associated case file and forward for input to RRACS.

3. After ANMF cases have been properly input to RRACS, associate the Form 5147 and forward original copy of the Form 5792, to Files. Attach a copy of the manual refund request to the ANMF Transcript if applicable. A third copy of the Form 5792 must be maintained by the manual refund initiator for appropriate monitoring actions.

4. Rejecting manual refund requests, see IRM 3.17.79.3.2.2.

(5) CC REFAP enables the user to add a prior day indicator "Y" to the input screen, when the CC RFUND was input during the previous processing day evening real-time. Verify CC RFUND, TC 840 input date prior to CC REFAP, to determine if the "Y" indicator is applicable.

(1) When CC RFUND/CC REFAP mismatch is identified by the IDRS system (no match) the TC 840 "PN" (pending status) on IDRS changes to "DQ" (Deleted in Quality Review). A CC RFUND/CC REFAP "No Match" transcript (EOD07) is generated to the Accounting Operation, Manual Refund function. All rejects are AC "6" or "7" (identified by the literal "AC") on the (EOD07) transcript.

1. AC "6" condition is caused by failure of related CC RFUND to match on CC REFAP data elements.

2. When a CC REFAP does not match all data elements of CC RFUND, Accounting will reject, see IRM 3.17.79.3.2.2. When the "DQ" is caused by the input of CC REFAP, the Accounting Operation, Manual Refund function will re-input the manual refund request, CC RFUND.

3. The CC RFUND must be re-input as originally indicated on the Form 5792, when the "DQ" is caused by the input of CC REFAP, with the exception of any additional overpayment interest due. (Do not modify interest if under one dollar ($1.00) tolerance) Caution must be taken to include input of any Bypass Indicator (BPI) reflected on the original manual refund request. A BPI identifies the eligibility for a TOP offset, see IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator.

(2) IDRS will not allow an adjustment to a module by an employee other than the employee to whom an open control base is assigned. Ensure the existing open control base is in "B" status, prior to re-input of the CC RFUND.

(3) AC "7" condition occurs when a CC RFUND or CC REFAP is input without a related CC REFAP or CC RFUND record, respectively.

1. If the CC REFAP was not input or was input incorrectly, the Accounting Operation, Manual Refund function will input both CC RFUND and CC REFAP to complete processing of the manual refund request.

   Note: The Accounting Operation, Manual Refund function will modify the Form 5792 for any additional overpayment interest (if applicable) and the IDRS Number of Employee re-inputting the CC RFUND. Contact the manual refund initiator to inform them of the reason for the change in the interest amount (if applicable).

2. If CC RFUND was not input, a Form 5792 was not received, or CC RFUND was input incorrectly, the Accounting Operation, Manual Refund function will reject, see IRM 3.17.79.3.2.2.

3. The employee inputting CC REFAP cannot be the same employee inputting CC RFUND for the same account.

(4) Following are examples of records which appear to be Mis-Matches on the EOD07 transcript. These records will be either AC "6" or "7".

1. Multiple CC RFUND and one CC REFAP - Initiating employee did not use CC TERUP on the incorrect CC RFUND.

2. Multiple CC REFAP and one CC RFUND - Employee initiating CC REFAP input information and realized it was in error input another CC REFAP (CC TERUP is not available for CC REFAP), or inadvertently input multiple CC REFAP for the same case.

(5) These examples are not all inclusive. Each case must be thoroughly reviewed by the Accounting Operation, Manual Refund function to determine cause.

(1) Because of the expedite processing provided by the Regional Financial Centers, the "intercept" stop-refunds (CC NOREF, BMF only) capability provided for Master File generated refunds (TC 846) is not available for Form 5792 IDRS Generated Refunds (IGR).

(2) If it is determined prior to the shipment or transmission of the refund tape to the RFC that a refund is incorrect, IDRS provides a limited tape delete capability. If the deletion procedures will result in a day or more delay in shipping the refund tape to the RFC, a Certifying Officer must phone the RFC and request they stop the refund instead. Provide the schedule number, requester's name, and phone number. Ask RFC to call when the action has been completed. Verify whether the total on the SPS/Form 1166 was adjusted or a Standard F1098 issued. If the RFC will not stop the refund, attempt to delete the refund from the tape as expeditiously as possible. Hand carry a memorandum or buckslip to the Chief, Computer Branch, requesting preparation of a Delete Card to be input to run EOD 27. Provide the following information on the memo:

1. TIN and File Source

2. ULC (valid for Submission Processing Center of input)

3. MFT

4. TC 840 Amount

5. Date of input (YYDDD) (DDD = Julian date)

6. Zip Code

7. Submission Processing (Center) Code

(3) When all deletes have been processed, IDRS will produce a corrected IDRS Generated Refund Report (Adjusted) and IDRS Generated Refund Tape.

(4) If refunds were deleted from the tape prior to certification, several corrective measures must be taken to reflect the correct account status. Notify RRACS area.

1. Delete the TC 840 record from TEP if possible; if not, prepare a credit portion of Form 3809, TC 841, Doc Code 48 to reverse TC 840. Cross reference information must be sufficient to establish a clear explanation of events.

2. Manually adjust the IDRS PJ Recap and the Net Tax Refund Report to remove any deleted items and amounts from the affected Master Files (IMF, BMF, ANMF, IRAF).

3. Enter a History item (CC ACTON) on IDRS to indicate the refund has been deleted and the case has been returned to the initiator.

4. Input CC DELETE to eliminate erroneous TC 840 on IDRS Refund Information File (RFIF).

5. Return case file to the initiator (with reason for deletion) for necessary action (e.g., reversal of adjustments, stop notices, additional adjustments, case monitoring, etc.).

(5) Use the IDRS Generated Refund Report to prepare summary SPS, Voucher and Schedule of Payments. The report contains the total number and amount of refunds on the refund tape; only one refund schedule is required. However, a memo entry reflecting the count and amount of BMF refunds is necessary to meet a Bureau of the Fiscal Service requirement. The information for the memo entry is available on the IGR Report.

(6) Anytime a refund schedule exceeds $50,000,000.00, Treasury must be notified the same day at the below e-mail addresses:
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(7) Assign the refund schedule number from IDRS end-of-day run to the SPS/Form 1166 and obtain the signature of the Certifying Officer. The date of the Refund Schedule is always the date signed regardless of the date of IDRS output.

1. Refund Schedule Number generates from the EOD-2640 run via Control D. IDRS Generated refunds (IGR) and refund schedule number has always generated in the EOD-26 runs. Since July 2002, refund schedule numbers use the definer "W" designating IDRS Generated refunds.

2. See IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

3. Control D provides the IDRS End-of-Day (EOD) output.

4. Secure Payment System (SPS) Screen requires a reel number. Reel number is available from Control D, the BFS MCC/ECC Acknowledgement Report.

5. See Exhibit 3.17.79–8 (Refund Schedule Number Formats as Entered into SPS).

(8) Since the IDRS Generated Refund is to expedite refund processing, this transmission must be accomplished as early in the day as possible. Retain a duplicate copy of SPS refund schedule with the IDRS Generated Refund Report and the IDRS PJ Recap.

(9) All ANMF transactions must be forwarded for input to RRACS. The IDRS PJ Recap will accompany these ANMF records. See IRM 3.17.79.4.1 for further guidance.

(10) All other transaction records and case files will now be sent for file retention or for other processing to the Master Files in accordance with IRM 3.17.79.4.1.

(11) Retain the SPS refund schedule (triplicate copy) and the IDRS Generated Refund Report to verify and confirm check issuance from the RFC.

(12) A copy of the Certifying Officer (CO) Report for both the IMF and BMF Form 5792 Daily Schedules must be uploaded to the SP, ATP, Manual Refund Project SharePoint site at the following link:Manual Refund Project - Home (sharepoint.com) per IRM 3.17.79.3.2.1.

(1) Refunds are scheduled and certified on the Bureau of the Fiscal Service (BFS) Secure Payment System (SPS).

(2) Manual refunds issued after the last posting cycle of the calendar year are not posted to the Master File (MF) in sufficient time for interest amounts to be extracted for the Master File preparation of Form 1099-INT, Interest Income.

1. These refunds do not post to the Master File until after Cycle 01 the following year.

2. Procedures for issuing Form 1099-INT Copy B are outlined in IRM 3.17.79.7.1, Form 1099-INT, Interest Income, Copy B To Recipient.

(3) The Accounting Operations area inputs a history item on IDRS for each Form 3753 scheduled when they prepare and schedule the SPS or Form 1166 Voucher and Schedule of Payments (e.g., Refund Schedule). The history item is input via Command Code (CC) ACTON the day the refund is scheduled.

(4) All Form 3753 that have been reviewed and have been processed must have a TC 971 AC 664 input on the module that the manual refund is being issued from. The presence of a TC 971 AC 664 indicates that a Form 3753 Manual Refund has been processed. This will alert anyone reviewing the account that a Form 3753 is being processed. This is to be completed as follows:

• Access command code FRM77

• Input 971 in the transaction code (TC) field and 664 in the action code (AC) field, on the appropriate tax account. This must be input the same day the Form 3753 is approved, scheduled, and certified in SPS.

• The remarks field must be populated with "Form 3753 IN PROCESS."

(5) ISRP programming initiated by the Custodial Account Processing (CAP) office of the Chief Financial Officer now transcribes the Refund Schedule Number for Document Codes 45.

(1) Refunds are disbursed by the Kansas City, Regional Finance Center (RFC).

1. Generated refund data not provided by dedicated telecommunications line or transmitted via Secure Payment System (SPS) must be submitted on a Form 1166 to the Kansas City, Regional Financial Center (RFC), Department of Treasury, Bureau of the Fiscal Service (BFS) on a FMS Form 1166 Voucher and Scheduling of Payments to the following address:
   Department of Treasury, Bureau of the Fiscal Service
   Kansas City Financial Center
   Attn: DSSV
   4241 NE 34th Street
   Kansas City, MO 64117

2. The following information is for refund post processing at the Philadelphia, RFC, Department of Treasury, BFS:
   Department of Treasury, Bureau of the Fiscal Service
   National Payment Recovery Center
   13000 Townsend Rd
   Philadelphia, PA 19154

3. The following information is for the Hyattsville, RFC, Department of Treasury, BFS office:
   Department of Treasury, Bureau of the Fiscal Service
   Attn: E-ICAM-FMS
   3700 East-West Highway
   Hyattsville, MD 20782

(1) In the event the SPS is not accessible, the SPC site will immediately notify headquarters analyst, by using the Manual Refund Headquarter Contacts, for further directive on actions needed, to ensure refunds are issued in a timely manner. The contingency action will require the manual preparation of Standard Form (SF) 1166 Voucher and Schedule of Payments and Form 1167 , Continuation Sheet, for submission to the Kansas City Bureau of the Fiscal Service by the Submission Processing Center and the Enterprise Computing Center (ECC) Certifying Officer, authorizing the issuance of refunds. The Form 1166 instructions appear in this IRM in the event the Secure Payment System (SPS) is not accessible and use of the Form 1166 is needed.

(2) Form 1166 and Form 1167 are pre-numbered for control and security purposes. Form 1166 is numbered sequentially beginning with two alphabetic characters followed by six numeric digits, i.e., AA 000001 through ZZ 999999. A sample of the prior year definers appear below for Master File Generated Refunds:

1. Secure Payment System (SPS) vouchers are numbered by year, Center Code, IMF (1) or BMF (2), and cycle (MCC processed cycle). Processing year 2003 Master File had 53 processing cycles (200353).

2. Prior year Master File refund schedules showed F for paper International (IMF and BMF).

3. Prior year Master File refund schedules showed FEF for Direct Deposit International (IMF only).

4. Prior year Master File refund schedules showed R for replacement.

5. Prior year Master File refund schedules showed X for BMF Accelerated (BMF only).

6. Prior year Master File refund schedules showed EFT as Direct Deposit (IMF only).

7. See IRM 3.17.79.2 for a list of the current Master File generated refund schedule descriptions.

(3) Submission Processing Centers and Enterprise Computing Center (ECC) - Martinsburg, continue to assign schedule numbers to refund schedules. The Form 1166 confirmation data accessed through the IPAC/CARS RFC/Agency Link reflects the schedule numbers assigned by the Submission Processing Center and ECC. This refund schedule number is used for accounting and auditing purposes.

(4) Although now phased out for other than contingency reasons, Centers were required to show the range of Form 1166 and 1167 serial numbers assigned to their Agency Location Code (ALC) by General Services Administration (GSA). The assigned serial numbers are shown on the reverse side of the Form 210 as follows:

(5) Pre-numbered Form 1166 and Form 1167 (OCR) must be requisitioned from the GSA Stores Depot, Federal Supply Service. The stock number to be used when ordering Form 1166 is 7540001352376 and Form 1167 is 7540001052305.

(6) Agencies are not required to submit refund schedules in strict numerical sequence. However, necessary steps must be taken by the Centers and ECC to ensure all refund schedules are accounted for and controlled against misuse. ECC and the Centers must maintain a control log of refund schedules. This control log must be retained as long as the schedules are held in the GAO site audit file. Unnumbered vouchers and vouchers outside the range designated on the reverse side of Form 210 are rejected by the receiving RFC.

(7) If the lost, missing, or stolen refund schedule or group of schedules has personally identifiable information (PII), then report the loss to the RFC and the Office of Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office (IM) using the PII Breach Reporting Form. Call (267) 466-0777 if you have any problems with the online form or have questions about completing the online form. See IRM 10.5.4, Privacy and Information Protection, Incident Management Program, for additional information about reporting losses, thefts, and disclosures. Visit the Report Losses, Thefts and Disclosures page in the Privacy and Disclosure Knowledge Base at https://portal.ds.irsnet.gov/sites/vl003/lists/reportlossestheftsdisclosures/landingview.aspx for additional information and guidance.

(8) Should this occur, Centers must submit new Form 210 cards for the Certifying Officer. The new range begins with the first voucher on hand following the missing voucher.

(9) The servicing RFC(s) must be notified of any newly assigned serial numbers when an additional stock of refund vouchers is ordered. Upon receipt of the new stock, Submission Processing Centers must submit updated Form 210 cards reflecting the newly assigned range of serial numbers or a memorandum to the RFC providing that data.

(10) Basic procedures for preparing paper Form 1166 appear below.

1. Prepare Form 1166, Voucher and Schedule of Payments, in triplicate.

2. Form 1166 is prepared by inserting the name and address of taxpayer from the "Make Payable to" box of Form 3753 when initiating manual refunds.

3. The Accounting Operations area scheduling manual refunds on SPS/Form 1166, inputs a history item on IDRS for each Form 3753 scheduled.

(1) The Bureau of the Fiscal Service (BFS), Secure Payment System (SPS) was developed by BFS to certify disbursements for all Federal agencies. SPS automates refund schedule preparation, certification, transmission and verification of the Form 1166, Voucher and Schedule of Refunds. SPS replaces the manual or paper Form 1166 and continuation sheet. SPS is user-friendly, menu screen driven, with microcomputer programs automating two distinct processes:

1. The certification process, a designated Certifying Officer certifies (or attests in writing) that disbursements to be made by the Federal Government are legal, proper and correct. See IRM 3.17.79.1.8, Certifying Officer Review.

2. The scheduling process is the IRS transmission to BFS of detailed payment data records; the payee amount, identification number and related inscription information printed on the face of the check and/or summary information from Enterprise Computing Company (ECC) - Martinsburg. See further references at IRM 3.17.79.2.2 , Generated Refunds, Tapes and Schedules and IRM 3.17.79.4.3, Certifying the IDRS Generated Refund (IGR) Tape.

3. SPS is the preferred method for certifying tax refund disbursements. Paper Form 1166 should be used only in rare circumstances and is considered the contingency for SPS system transmission failure.

4. BFS assures National Office that should difficulties occur with certifying payments via SPS, The Kansas City, BFS will contact customers to redirect certifications via SPS. If this does not occur, please advise National Office.

(2) Paper Form 1166 format procedures are in the Voucher Schedule Preparation Manual (October 1989) prepared by the Regional Financial Center.

(3) BFS's Intra -governmental Payment and Collection System (IPAC) for confirming refund schedule information has also developed a User Guide available at the following web address: https://fiscal.treasury.gov/ipac/. IPAC is an Internet-based system which replaced several applications on DOS GOALS (224, RITS and TRACS), and requires Internet access, browsers and versions with User ID and Passwords.

(4) SPS training is published on the BFS site https://fiscal.treasury.gov/training/.

(5) Three important differences between Form 1166 formats and the SPS formats are:

1. ACCOUNT SYMBOL: This field (16 alphanumeric characters) replaces the former appropriation code field. The first seven characters are mandatory. The first two characters must be the first two characters of the ALC and is part of the transmission validation process. Additional characters are as follows for tax refunds only:

IF...	THEN...
the refund has no interest	Enter 20X0903
the refund has interest	Enter 20X0903/04

2. REMARKS This field has two lines (40 alphanumeric characters for each line).

   Note: The DEO User Guide shows this field as Payment ID Lines for Enclosure Code 0 and 1 only.

   Caution: THE INFORMATION YOU ENTER ON LINE 1 AND 2 WILL AUTOMATICALLY PRINT ON THE PAYMENT CHECK. Enter information as shown below:

Line Number	Information to Input in Line
Line 1	Enter MFT and Period Sample: 02/200912
Line 2	Enter the two digit line number, a space, the word "Interest" and the amount (if necessary) Sample: 61 INTEREST 343.29

3. CHECK SERIAL NUMBER RANGE SPS does not designate a space for the beginning and ending range numbers. The information from the CARS confirmation listing will be entered on the file copy of the SPS document.

(1) Request for Refund of Unassessed Revenues SPS/Form 1166 is for scheduling refunds of unassessed revenue collections, unassessed advance payments, or for miscellaneous refund items.

(2) When appropriate manual refund form, memorandum, correspondence, Claim Form 843, Unidentified Remittance Document, or advance payment case file and Part 2 of Form 3244A, Payment Posting Voucher Examination, authorizing a refund arrive in Accounting Operations:

1. The individual refund items are scheduled identifying each payee and amount to be produced in the literal display printed on the face of the check for manual cancellations if the check is returned or undelivered. The refund checks are identified as: EXES, OFFER, SEIZURE or UNID.

2. Record the IRS refund schedule number on documents authorizing refunds. See Exhibit 3.17.79–57 for description of refund schedule number format.

(3) The Refund Schedule/SPS/Form 1166 is processed as specified above, except that:

1. No supporting documents are transmitted to the Regional Financial Center with the Form 1166.

2. Form 3753 is returned to Files.

3. Part 2, Form 3244A is returned to the computation clerk (deficiency) after entering the SPS/Form 1166 number in Remarks Block on the Form 3244A.

4. Return the case file to the returns files group.

(1) Receive all current year manual refund and NMF cases approved on Form 3753 and Form 5792 in the Certification function.

(2) Manual Form 1099-INT are issued by IRS when more than $10 ($600 or more in some cases) in refund interest is paid. Form 1099-INT, Copy B To Recipient, are computer generated on IMF and BMF accounts, except Corporation refunds, between January 1 and December 31 (through dead cycles) on manual refunds. Copy B To Recipient must be produced by the Manual Refund function during Master File dead cycles. Chief Information Officer (CIO) maintains the national program and transmits the Form 1099-INT information returns to Enterprise Computing Center (ECC) Information Return Program (IRP).

1. Procedures for submitting data to ECC; due dates and addresses are found in the Publication 1220, Specifications for Filing Form 1097-BTC, F1098, Form 1099, Form 3921, Form 3922, Form 5498, Form 8935, and Form W-2G Electronically.

2. The due date for furnishing the required Copy B to Recipient (taxpayer) is usually by January 31. This requirement is described in Publication 1220 and in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates.

3. The due date for furnishing the 1099 information returns detail data to IRS Information Returns Program Payer Master File (IRP, PMF) at ECC is February 28. System Administrators files the appropriate national files electronically to ECC's IRP program.

4. On NMF cases, a 1099-INT must always be manually prepared.

5. All SPC sites maintain the national program (1099 Pro) and transmits manual refund interest Form 1099-INT information returns.

(3) Produce manual refund Form 1099-INT, Interest Income, (if not already prepared) for the interest amount paid on all manual and Non-Master File Accounts, if the interest paid by the Service to the recipient exceeds $10.00 or more for Form 1099-INT (and $600 or more for Form 1099-C).

1. Form 1099-INT should not be issued until it is certain that the refund will not be deleted. If refunds are deleted, Form 1099-INT must be adjusted or destroyed as appropriate.

2. Form 1099-INT, Copies B to Recipient, must be received by recipients by January 31 annually.

(4) Entity data is entered by the Manual Refund function using disbursement posting documents (Form 3753 and Form 5792). The program provides a cumulative interest paid dollar amount per entity.

1. Non-Master File accounts receiving interest amounts over the threshold receive Form 1099-INT when the Service paid interest on tax refunds.

2. Data will be entered into the Automated 1099 program by Manual Refund function employees.

3. The Manual Refund function verifies that all items are entered, produced, deleted as necessary, printed and Copy B To Recipient are mailed to taxpayers prior to January 31.