Internal Revenue Manual
IRM 21.5.7 — Payment Tracers
Part 21. Customer Account Services
Chapter 5. Account Resolution Section 7. Payment Tracers 21.5.7 Payment Tracers Manual Transmittal August 26, 2025 Purpose (1) This transmits revised IRM 21.5.7, Account Resolution, Payment Tracers. Material Changes (1) IRM 21.5.7.1.4 - Added new subsection titled Program Management and Review to comply with internal control requirements. Subsequent subsections renumbered as a result. (2) IRM 21.5.7.1.5(1 - 2) - Removed internal control paragraphs that addressed Program Reports and Program Effectiveness. Both internal controls are now addressed in new subsection IRM 21.5.7.1.4, Program Management and Review. (3) IRM 21.5.7.1.6 - Updated title to comply with internal control requirements. (4) IRM 21.5.7.3.4 - Added new subsection related to Material Change #26 below. This new subsection resulted from recommendation to relocate IRM 21.5.7.4.7, Payments Methods/Systems, to improve overall organization and flow of procedures. As part of this reorganization, all related subsections (IRM 21.5.7.4.7.1 - 21.5.7.4.7.20) were moved as well. No substantive changes made with this move. (5) 21.5.7.3.4.6(2) (b) - Added title of the 86C letter. (6) IRM 21.5.7.3.4.14(1) - Updated to include definition of EFT to improve understanding of the EFTPS process. IPU 25U3260 issued 05-07-2025 (7) IRM 21.5.7.3.4.14(2) - Updated to move note and bullets to a different paragraph. IPU 25U3260 issued 05-07-2025 (8) IRM 21.5.7.3.4.14(3) - Updated to include current information about the Treasury Financial Agent. IPU 25U3260 issued 05-07-2025 (9) IRM 21.5.7.3.4.14(4) - Updated to simplify statement and improve readability. IPU 25U3260 issued 05-07-2025 (10) IRM 21.5.7.3.4.14(5) - Added paragraph to include description of Automated Clearing House payments. IPU 25U3260 issued 05-07-2025 (11) IRM 21.5.7.3.4.14(7) - Updated to include information about File Location Codes (FLCs) associated with EFT payments. IPU 25U3260 issued 05-07-2025 (12) IRM 21.5.7.3.4.14(8) - Added note to include information abount EFT numbers. IPU 25U3260 issued 05-07-2025 (13) IRM 21.5.7.3.4.14 (10 note) - Clarified actions to take when the payment status shown on CC EFTPS is TEP and added link to IRM 21.5.7.4, Resolving Missing Payments Procedures. IPU 24U1222 issued 12-16-2024 (14) IRM 21.5.7.3.4.14(12) (b) - Changed note to a reminder. IPU 25U3260 issued 05-07-2025 (15) IRM 21.5.7.3.4.20(1) - Updated to add IRS Direct Pay options are available for Business Master File (BMF) taxpayers. IPU 24U1131 issued 11-14-2024 (16) IRM 21.5.7.3.5 - Changed title of subsection from 'Remittance Left Attached to the Return' to 'Remittance Not Processed - Paper Check Not Cashed' to better reflect the procedures contained. (SERP Feedback #29511) IPU 25U3385 issued 06-09-2025 (17) IRM 21.5.7.3.5(1) - Deleted paragraph 1 to remove information about electronic payments as the procedures in this subsection are related to paper remittances. IPU 25U3385 issued 06-09-2025 (18) IRM 21.5.7.3.5(2)(if-and-then chart) - Updated throughout to coincide with changes to IRS Direct Pay as an option for both IMF and BMF. Added hyperlink to IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS) Same day Wire. IPU 25U3385 issued 06-09-2025 (19) IRM 21.5.7.3.6 (3) (e) - Updated procedures to include a timeframe for taxpayers to expect a refund when Form 8765 is needed to get a missing payment found in Excess Collections applied to the taxpayer's account. IPU 25U0359 issued 03-14-2025 (20) IRM 21.5.7.3.8(4) - Updated timeframe from 120 to 60 days for missing payments referrals found in ERS inventory. IPU 24U1082 issued 10-29-2024 (21) IRM 21.5.7.3.10(1) both if/then scenarios - Added link to procedures in IRM 21.5.8.4.2, Determining Correct Credit Transfer Format, for when a change to the payment date is needed. IPU 24U1082 issued 10-29-2024 (22) IRM 21.5.7.3.11(4) 1st if-and-then - Added 60 day timeframe for referrals sent to ERS on payments processed with incomplete information and located in ERS inventory for phone inquiries. IPU 24U1082 issued 10-29-2024 (23) IRM 21.5.7.3.11(4) 2nd if-and-then - Added 60 day timeframe for referrals sent to ERS on payments processed with incomplete information and located in ERS inventory for paper inquiries. IPU 24U1082 issued 10-29-2024 (24) IRM 21.5.7.3.11(4) - Added procedures to if-and-then table for referrals sent to ERS that are subsequently returned to the originator because the payment is no longer in ERS inventory. IPU 24U1082 issued 10-29-2024 (25) IRM 21.5.7.3.12 - Removed subsection to avoid duplication as the procedures are currently included in IRM 21.5.7.3.5, Remittance Not Processed - Paper Check Not Cashed. IPU 25U3385 issued 06-09-2025 (26) IRM 21.5.7.4.2(3) - Updated to include instructions for routing Forms 4446 to Kansas City HPTF Teams using their organizational mailbox as the 1st option for routing. IPU 25U0295 issued 03-03-2025 (27) IRM 21.5.7.4.2(7) - Updated to add manager or approving official must sign the completed Form 4446 prior to routing to HPTF. IPU 25U3385 issued 06-09-2025 (28) IRM 21.5.7.4.6.8 - Added link to instructions for routing altered/stolen payment inquiries to TIGTA. (29) IRM 21.5.7.4.7 - Moved subsection to IRM 21.5.7.3.4 to reorganize Payment Methods/Systems under Missing Payment Research. IPU 24U1082 issued 10-29-2024 (30) Various editorial changes were made throughout this IRM to update and/or correct grammar, spelling, plain language, web sites, references, and citations. Effect on Other Documents IRM 21.5.7 dated September 10, 2024 (effective October 1, 2024) is superseded. This IRM incorporates IRM Procedural Updates (IPUs): IPU 24U1082 issued 10-29-2024, IPU 24U1131 issued 11-14-2024, IPU 24U1222 issued 12-16-2024, IPU 25U0295 issued 03-03-2025, IPU 25U0359 issued 03-14-2025, IPU 25U3260 issued 05-07-2025, IPU 25U3385 issued 06-09-2025. Audience All employees performing account work in Taxpayer Services, Small Business/Self-Employed, Appeals, and Tax-Exempt/Government Entities. Effective Date (10-01-2025) LuCinda Comegys Director, Accounts Management Taxpayer Services Division
Program Scope and Objectives
21.5.7.1 (10-01-2021) Program Scope and Objectives Purpose: This IRM provides instructions to customer service representatives (CSRs) who address payment tracers (i.e., researching and resolving missing and misapplied payments). Audience: The primary users of the IRM are all IRS employees in Business Operating Divisions (BODs) in contact with taxpayers by telephone, correspondence, or in person. Policy Owner: The Director of Accounts Management. Program Owner: Taxpayer Services (TS), Accounts Management, Policy and Procedures IMF. Primary Stakeholders: Organizations with whom Accounts Management collaborates (e.g., Return Integrity Verification Operations (RIVO) and Submission Processing). Program Goals: Program goals for payment tracer work are: Achieve a high customer accuracy rate for phone calls and paper adjustments related to payment tracers Achieve greater efficiency in resolving paper adjustment cases related to payment applications Assess for program vulnerabilities and opportunities for improvement Increase effectiveness of communications with customers
Background
21.5.7.1.1 (10-01-2017) Background Taxpayers may resolve missing/misapplied payment issues and check payment status through Direct Pay (at irs.gov), written correspondence, phone contact with a Customer Service Representative (CSR) or a Taxpayer Assistance Center (TAC) visit. This section provides procedures for: Locating missing payments Deciding who works payment tracer cases needing various levels of research For Hardcore Payment Tracer Function (HPTF) procedures, refer to IRM 3.17.5, Hardcore Payment Tracers.
Authority
21.5.7.1.2 (10-01-2017) Authority Authority for these procedures is found in IRM 1.2.1.13, Policy Statements for Customer Account Services Activities.
Roles and Responsibilities
21.5.7.1.3 (10-01-2017) Roles and Responsibilities The Director of Accounts Management has overall responsibility for the policy related to this IRM, which is published on a yearly basis. All Customer Service Representatives, including Automated Collection System (ACS), Campus Collection Operations, and TAC, have responsibilities for researching and resolving payment tracer inquiries.
Program Management and Review
21.5.7.1.4 (10-01-2025) Program Management and Review Program Reports: For reports concerning quality, inventory, and aged listings, refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be viewed by accessing Control Data Analysis, Project PCD, on the Control-D/Web Access server, which has a login program control. Program Effectiveness: Program Effectiveness is determined by Accounts Management's employees successfully using IRM guidance to perform necessary account actions and duties.
Program Controls
21.5.7.1.5 (10-01-2025) Program Controls Program Controls: Goals, measures and operating guidelines listed in the yearly Program Letter. Quality data and guidelines for measurement referenced in IRM 21.10.1, Embedded Quality (EQ) for Accounts Management, Campus Compliance, Field Assistance, Tax-Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.
Terms and Acronyms
21.5.7.1.6 (10-01-2025) Terms and Acronyms Acronyms commonly used in this IRM: Acronym: Definition: ALS Automated Lien System ANMF Automated Non-Master File CCP Centralized Case Processing (CCP) Lien Teams ECC-MTB Enterprise Computing Center - Martinsburg, West Virginia EFPPS Electronic Federal Payment Posting System EFTPS Electronic Federal Tax Payment System ELF Electronic Filing ERS Error Resolution System GMF Generalized Mainframe Framework HPTF Hardcore Payment Tracer Function ISRP Integrated Submission and Remittance Processing NMF Non-Master File RRPS Residual Remittance Processing System RSPCC Remittance Strategy Paper Check Conversion RTR Remittance Transaction Research SCRIPS Service Center Recognition Image Processing System SITLP State Income Tax Levy Program Payments TIN Taxpayer Identification Number URF Unidentified Remittance File XSF Excess Collection File For a comprehensive listing of any IRS acronyms, refer to the Acronym Database.
Related Resources
21.5.7.1.7 (10-01-2017) Related Resources Refer to IRM 1.4.2.1.8, Related Resources, for information on related resources that impact internal controls. Additional related resources include: Integrated Automation Technologies (IAT) Job Aids Document 6209 (IRS Processing Codes and Information) The Taxpayer Bill of Rights (TBOR) Pub 1, Your Rights as a Taxpayer
What Is a Payment Tracer
21.5.7.2 (10-01-2003) What Is a Payment Tracer A payment tracer is the process used to locate a missing or misapplied payment. A missing payment is one that cannot be found on the taxpayer's account. A payment tracer case is not resolved until the missing or misapplied payment is correctly applied to a taxpayer's account.
Missing Payments Research
21.5.7.3 (07-08-2022) Missing Payments Research Various research tools can help find missing payments as described in this IRM. Use of the Integrated Automation Technologies (IAT) tools such as the TC (Transaction Code) Search Tool is highly recommended. Refer to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools, for more information. Before disclosing any tax information: Make sure you're speaking with the taxpayer or the taxpayer's authorized representative. Refer to IRM 21.1.3.2, General Disclosure Guidelines, for more information. Review procedures in IRM 10.5.1.6.7.2, Answering Machine or Voicemail, before leaving a message on the taxpayer's answering machine or voice mail. Review procedures in Faxing before faxing confidential information to the taxpayer. Before conducting research to locate a payment, determine if at least two weeks have passed since the taxpayer mailed their payment or scheduled an authorized electronic payment. If not, ask the taxpayer to call back at that time. Otherwise obtain the following as applicable: Evidence of payment (e.g., copy of cancelled check, front and back) Date payment cleared Taxpayer name and address Taxpayer Identification Number (TIN) Date of payment Amount of payment Tax period payment intended for Where payment was sent or delivered (if mailed) Type of payment (e.g., check, money order, Debit/Credit card, electronic payment) Encoding information (e.g., check or money order) Direct Pay or Debit/Credit Card Payment confirmation number Electronic Federal Tax Payment System (EFTPS) 15-digit EFT number Routing number for financial institution on which the check was drawn Note: To alleviate taxpayer burden, every attempt must be made to resolve the missing payment through internal research, including using the Remittance Transaction Research (RTR) system. Refer to IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System, before requesting any documentation from the taxpayer. If the payment information cannot be located through internal research, determine if the documentation can be faxed while you're on the telephone with the taxpayer. If the taxpayer can fax the information, provide them with your fax number. Enterprise Electronic Fax (EEFax), when available, must be used in lieu of manual faxing. If the taxpayer cannot provide a copy of the documentation (in person or by fax), advise the caller they can either call back when they can fax the documentation or they can send a copy of the documentation to the appropriate campus that processes their payments. Refer to Campus Mailing Addresses, if the taxpayer is unable to fax the information and needs to send in the information. Note: Effective October 28, 2004, the "Check Clearing for the 21st Century Act" or "Check 21," is a federal law passed by the U. S. Government. A "substitute check" is the legal equivalent of the original check and must be processed as if it is the original. Not all banks have the equipment needed to accept electronic payment files and "Check 21" overcomes this obstacle. The truncating bank (which may be any bank in the check collection process) electronically transmits an image of the front and back (including endorsements) of the original check and the recipient bank converts the information into a new form of paper instrument, known as a "substitute check." A substitute check is the same size as the original and is designed to be processed in a bank's sorting equipment just as though it is the original check and may be returned to the payer with the monthly bank statements. The check's legend states "This is a legal copy of your check. You can use it the same way you would use the original check." Additional information and research may be needed. Research criteria may be different depending on the type of payment. Refer to specific type of payment procedures listed in IRM 21.5.7.3.4 , Payment Methods/Systems. Note: Contact the taxpayer via telephone or fax for information needed to resolve the case. If unable to reach taxpayer via telephone or fax (at least two attempts), use the appropriate "C letter." All functions work the initial phase of a payment tracer case. If a transferable payment is found, follow the credit transfer procedures in IRM 21.5.8, Credit Transfers. If the taxpayer indicates they are experiencing a hardship and you cannot resolve the issue the same day, follow procedures in IRM 13.1.7.3, TAS Case Criteria, to determine if the issue is eligible for referral to the Taxpayer Advocate Service (TAS). The definition of same day is within 24 hours. Same day cases include cases you can completely resolve in 24 hours as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. Do not refer these cases to TAS unless they meet TAS criteria or the taxpayer asks to be transferred to TAS. When referring cases to TAS, use Form 911/Form e-911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures. The system used to process a payment determines the research method needed. Endorsement (encoder) information on the copy of the remittance establishes an audit trail. From the endorsement/encoder information, you can reconstruct the Document Locator Number (DLN) assigned to the remittance and/or Remittance Processing System Identification (RPSID) number of the electronic voucher batch number. If you cannot locate the payment, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) as indicated below: Row Number If Payment Processed at: Then Route to: 1 Andover, Atlanta, Fresno or Kansas City Kansas City HPTF 2 Austin Austin HPTF 3 Brookhaven, Cincinnati, Memphis, Ogden or Philadelphia Ogden HPTF HPTF is usually located in the Accounting Control/Services Operation. Hardcore Payment Tracer addresses, telephone numbers, and fax numbers can be found by accessing Servicewide Electronic Research Program (SERP) under the Who/Where tab under the title Hardcore Payment Tracer Addresses. Follow procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), to refer payment tracers. Request a manual lien release (TC 582, lien indicator) in the following situations: Systemic release of the lien will not occur Action taken fully satisfies all outstanding liabilities and will take longer than 30 days to post Account fully satisfied and more than 30 days have passed For manual lien releases refer to IRM 5.12.3, Lien Release and Related Topics, for additional information. If you have access to the Automated Lien System (ALS), input the lien release. Employees without access to ALS must submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Case Processing (CCP) Lien Teams. Contact information for the CCP can be found at Centralized Case Processing (CCP) Lien Teams.
Remittance Transaction Research (RTR) System
21.5.7.3.1 (01-12-2023) Remittance Transaction Research (RTR) System The Remittance Transaction Research (RTR) system is a universal access researchable database that contains remittance processing data and images from IRS Integrated Submission and Remittance Processing (ISRP) system and Remittance Strategy Paper Check Conversion (RSPCC). This system permits data/image storage for up to 7 years and provides immediate retrieval of images online. RTR provides access to remittance processing data and images. The images include the front and back of the cancelled check or money order and voucher, if submitted with the payment. RTR facilitates and expedites efforts to reconcile taxpayer payments, balance daily deposits, and respond to customer service inquiries. RTR users can research the RTR database to access remittance transaction data and images, print reports, and review notes to transactions. Note: RTR notes are located in the lower left section of the RTR results screen. Access to RTR is currently limited. Request access via the Business Entitlement Access Request System (BEARS) Application. Access must be approved by local management. RTR system must be researched before requesting a copy of the cancelled check or money order from the taxpayer, if both of the following apply: Access to the RTR system is available The payment is an ISRP, Lockbox, or RSPCC payment When performing a query (research) for records, enter as much information as possible to narrow your research request. A query initiated with minimal information may produce too many unrelated results. However, the quality of the information versus the quantity of information input into the query will generate the best results. Only payments processed by banks after installation and programming of the RTR equipment are available. Access Notes to view record changes or deletions made to either an individual record or a block of records prior to posting to Master File. For example, if a payment goes unpostable, the notes in RTR should contain enough information to allow users to track the payment record to the point at which it posts to a taxpayer's account. Once posted, changes or movement of credits are tracked through Master File via Integrated Data Retrieval System (IDRS). Payments taken to a Field Assistance (FA) TAC office or mailed to an Accounts Management (AM) Campus Support site (Andover, Atlanta, Brookhaven, Memphis, and Philadelphia) are processed electronically through RSPCC. RSPCC payments came online in January 2008. Identify RSPCC payments by the site identification number as follows: Row Number Site Identification Number 1 Andover 08 2 Atlanta 07 3 Brookhaven 19 4 Memphis 49 5 Philadelphia 28 6 FA TAC Offices 00
Integrated Data Retrieval System (IDRS) Research for Payment
21.5.7.3.2 (12-06-2023) Integrated Data Retrieval System (IDRS) Research for Payment Use IDRS and Corporate Files On Line (CFOL) command codes to search for payments. Refer to Document 6209 Section 8A, Master File Codes, IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, for information on displaying and using IDRS and CFOL for additional information. Use of the IAT TC Search Tool is highly recommended. Refer to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools, for additional information. The IAT TC Search Tool allows research of payments by amount, date, and TIN. The tool is designed to assist with IDRS research and resolution. Use the following IDRS/CFOL command codes to search for a payment: CC SUMRY and CC TXMOD, for possible misapplications of the payment. They provide different Master File Transaction (MFT) codes for Individual Master File (IMF) and Business Master File (BMF) accounts CC MFTRA CC IMFOL and/or CC BMFOL CC IMFOL definer code "P" displays payments within a specific date range or time period. Refer to Exhibit 2.3.51-23, Command Code IMFOL Output Display - Payment Summary, for more information. CC IMFOL definer code "Q" displays Resequence Code (RC) 24 resequencing transactions. Refer to IRM 2.3.51.2 (6), Command Code IMFOL, and Document 6209 Section 8B, Master File Codes, for additional information. Note: Perform complete account research to identify the Resequence Code and determine why the transaction is resequencing. CC EFTPS, to display electronic payment information CC INOLE, to research entity information CC INOLET and/or CC INOLEX, to check all related TINs, valid and invalid, provided by taxpayer; also, check all related accounts IMF, BMF, and NMF. CC TXMOD, CC SUMRY, and CC ENMOD with definer "N" after the TIN for ANMF tax modules and entity information CC UPTIN, to check open and closed unpostables for a specific TIN. Closed unpostable records remain on file 90 days for display CC URINQ, to research the Unidentified Remittance File for payments made within the past year CC XSINQ, to research the Excess Collections File for payments older than a year CC ERINV, to research the Error Resolution System (ERS) CC ESTAB, to order microfilm transcripts, modules on retention, and to request returns, blocks of documents or other documents CC SCFTR, to research the Service Center Control File to determine if the payment was renumbered. Refer to IRM 2.3.36.3, SCFTR Input Screen Reminder: Document 6209 Section 8A, Master File Codes, can be used to help read the IDRS/CFOL screens. Use IDRS Command Codes (CC) NAMES and CC NAMEI to obtain a social security number (SSN) and CC NAMEE and CC NAMEB to obtain an employer identification number (EIN) information. Research CFOL command codes (CC) for payments if IDRS is not available or if "No Data" on IDRS. CFOL also shows the MFT codes (e.g., MFT 31 for IMF accounts). Row Number If Then 1 The payment caused a credit balance on the MFT 31 and there is an open control. Refer the case to the employee with the open control. 2 The payment caused a credit balance on the MFT 31 and there is an open control to a clerical team. If trained in working MFT 31 transcripts/cases refer to IRM 21.6.8.6.2, REFMFT31/REFMFT65 Transcripts, for procedures. If not trained, refer to your campus' Accounts Maintenance function. 3 The payment did not cause a credit balance on the MFT 31. Refer to IRM 21.6.8.5.2, Split Spousal Assessments - Adjusting Accounts, to determine if other actions must take place. 4 The payment is being transferred to an MFT 31 account. Refer to IRM 21.6.8.5.2, Split Spousal Assessments -Adjusting Accounts, to determine if other actions must take place. Payments post and can be reversed on the Master File. Refer to Exhibit 21.5.8-1, Transaction Codes and Reversals, for additional information. Note: A TC 976 or TC 977 posts with a credit amount if the taxpayer submits a payment with an amended return. When researching for payments, check the module the payment was intended for to determine if the deposit was applied and then transferred to another module or account. Computer Condition Code (CCC) E on an employment tax return indicates the taxpayer requested to credit elect all or part of an overpayment. Missing payments may be included in a credit elect amount located on a subsequent module. See Document 6209 Section 3.5, Tax Return Information - Computer Condition Codes, for additional information on CCCs. A rollover (rolling payments) to a credit module, (indicated on IDRS by the presence of MFT 01 and the tax period 000000) occurs automatically when more credits have posted than claimed on the return. A single excess credit/payment may be systemically transferred, if a return has not posted for the subsequent tax period. The reversed credit shows R following the transaction code, with P following the DLN. The gaining module shows the same microfilm serial number, with A following the DLN. The 9th and 10th digits of the DLN will be 99. Always research the account thoroughly. If you locate an EFTPS payment for $0.00 with the same date of the payment you're looking for, research CC BMFOL for another TC 650 for .00 (the payment has the same payment date and EFTPS tracer number). The TC 650 for .00 rolls forward to the next tax period until it finds an account that either has a balance due or an account without a posted TC 150. If the payment is located, transfer the payment to the correct account. A rollback occurs when the taxpayer claims more credits on the return than those present in the module. If the return has not posted for the subsequent tax period, a single credit/payment, equaling the difference, may be transferred back to the prior module. The same identifying data, R and P, indicate a rollback. A rollback can occur between a Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and Form 941, Employer's Quarterly Tax Return
Resequencing TC 610 Payments Located Through CC IMFOLQ
21.5.7.3.2.1 (11-29-2023) Resequencing TC 610 Payments Located Through CC IMFOLQ When a payment attempts to post to an account as a TC 610 transaction (remittance with return) and no account established, the transaction resequences with a resequence code 24. The payment continues to resequence if no account is established until ECC-MTC cycle 29 when the transaction goes unpostable with an unpostable code (UPC) 151. Note: An unpostable or resequencing payment cannot be transferred until it has posted to a module. After ECC-MTC cycle 29, if a TC 610 attempts to post to an account without an established entity, the payment resequences (resequence code 24) for three cycles prior to going unpostable with UPC 151. Telephone and Taxpayer Assistance Center instructions: To locate a TC 610 payment, use CC IMFOLQ with the payment amount or TIN. Note: The following instructions apply to Form 1040 series only and not to Form 1041. If you locate a TC 610 payment, prepare a Form 4442, Inquiry Referral, select the Referral Category "IMFOLQ Payment" and then select the Accounts Management Service Center to which your site is associated. Refer to IRM 21.3.5.4.2, How to Prepare a Referral, for additional information. Exception: Puerto Rico will send their Form 4442 to the Brookhaven Campus paper function. In the "Taxpayer Inquiry/Proposed Resolution" section of the Form 4442, indicate the account where the payment is located under CC IMFOLQ and the taxpayer's SSN and entity information for where the payment needs to be applied. Correspondence or referral (Form 4442) instructions: To locate a TC 610 payment, use CC IMFOLQ with the payment amount or TIN. If you locate a TC 610 payment, request CC MFTRA definer U for the SSN shown on CC IMFOLQ to establish the account. Input a TC 000 using the information from the CC MFTRAU. Note: If a valid address for the individual listed on the CC MFTRAU is not available, use the IRS address of your specific site. Refer to Campus Mailing Addresses under the "Who/Where" tab on SERP for additional information. Monitor the account and once the entity is established, transfer the payment to the correct taxpayer account.
Spousal Payments
21.5.7.3.2.2 (04-23-2024) Spousal Payments Spousal payments resequence from the spouse's account to the joint account, providing the joint account is already established and one of the following conditions is present: There is a debit balance on the joint account for the year in question in status 20 or greater, or The joint account contains an unsettled return for the year in question. The systemic transfer process is triggered when either of the following occur: TC 594 CC 084 posts to the tax module and there is an unreversed TC 670 present, or TC 670 posts and there is an unreversed TC 594 CC 084 in the module Systemic Transfers - When the systemic transfer occurs, the Julian Date of the DLN changes to 888 to uniquely identify the transaction as an electronic payment transfer. The transfer of the electronic payment utilizes TC 666/667 processing. Note: The presence of a D- freeze under the primary TIN is not required for a systemic spousal transfer to occur. Systemic Processing - Systemic spousal payment transfers can occur daily if the account (or accounts) qualify for daily processing. If not, the transfers take place during weekly processing, normally on DD 05 (Thursday). This systemic processing will not occur if: The payment is not a TC 670 The spouse's account contains a posted return (original or SFR) The spouse's account has more than one posted TC 594 CC 084 with different cross-reference TINs A spousal offset is in progress The spouse's module contains a posted TC 43X or TC 66X and TC 594 CC 084 is present The ID Theft indicator in the entity is significant on the spousal account The controlling DLN contains Doc Code 34 There is no ongoing sweep of the e-payments for systemic transfers. Allow 2 to 3 weeks from the cycle the payment posted for the systemic process to occur. See paragraphs (6) and (7) below for more information related to the systemic transfer process. If the payment does not move systemically, manually move it to the joint account. Refer to paragraph (5) below. Note: During the systemic process, any transaction input to the 'From' account will resequence RC 36 until the Spousal Transfer is complete. Manual Transfers - prior to manually transferring a spousal payment, research CC IMFOLQ under the 'From' and 'To' TINs for resequencing transactions. Also, review the primary account for the presence of any previous systemic or manual transfers. If the payment in question has not been transferred, manually input a credit transfer of the payment to the joint account following existing procedures in IRM 21.5.8.4, IDRS Guidelines for Credit Transfers. Note: If a D- freeze is present on the primary account, do not manually transfer the spousal payment(s). Note: Spousal payment processing will stop at end of year (cycle YYYY49) and resume the following year cycle YYYY04. Allow 2 weeks, after dead cycles have ended, for the systemic process to resume. Do not attempt to input a manual transfer during this time frame. If the systemic transfer fails (there are many reasons the systemic transfer can fail) a TC 667 for zero will post to the spouse's account. This will generate an Electronic Spousal Payment (ELECSPPAY) Transcript to Brookhaven CSCO AMS and they will address the spousal payments per instructions found in IRM 5.19.10.5.10, Electronic Spousal Payment (ELECSPPAY) Transcripts. Additional information is available in IRM 5.19.10.5.10, Electronic Spousal Payment (ELECSPPAY) Transcripts, and IRM 21.5.6.4.7, D- Freeze.
Requesting Documents Through IDRS
21.5.7.3.3 (03-15-2023) Requesting Documents Through IDRS All functions working payment tracer cases are responsible for requesting tax returns, documents, records, blocks, etc. in order to resolve the case. Refer to IRM 21.5.1.5.6 (2) - (5), Incomplete CII Claims, for additional guidance to secure documentation For payments made prior to the implementation of the Residual Remittance Processing System (RRPS), command code ESTAB can be used to request a single document or entire block using the payment DLN. The payment DLN can be obtained from the remittance or from IDRS/CFOL next to the payment. All campuses implemented RRPS during 1999. The major change with the implementation of RRPS was the elimination of the DLN on the payment posting documents. If a payment posts as a TC 610, do not request the document. A payment posting voucher does not exist for a TC 610. For more information on RRPS payment documents and requesting archived images of the payment document or checks, follow procedures in IRM 21.5.7.3.4.1 , Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS). Research the entire block for the payment document. For information on Lockbox payment documents, follow procedures in IRM 21.5.7.3.4.4, Lockbox Payments.
Payment Methods/Systems
21.5.7.3.4 (10-29-2024) Payment Methods/Systems The following methods/systems are used for making/processing payments: Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS) Manual Deposits Field Office Remittances Lockbox Payments Installment Agreement User Fee Lockbox Payments Justice Department Lockbox Receipts Cashier's Check Money Orders Truncated checks Cash payments ANMF payments Foreign Remittances Free items Federal Tax Deposits (FTD) payments Electronic Federal Tax Payment System (EFTPS) payments Electronic Funds Withdrawal (Direct Debit) and Credit Card Direct Debit Installment Agreements Lloyd's of London taxpayers State Income Tax Levy Program (SITLP) IRS Direct Pay
Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS)
21.5.7.3.4.1 (07-12-2021) Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS) The Integrated Submission and Remittance Processing (ISRP) System converts paper tax and information documents, and remittances received by IRS into perfected electronic records of taxpayer data. When a tax document is received, it is opened and sorted by form type (e.g., Form 1040, etc.). Remittances with their accompanying documentation are pre-sorted into groups called batches. Each batch is uniquely identified by a 12-digit Remittance Processing System Identification (RPSID) number. This number always begins with "00" , followed by six digits, followed by "0000." This system captures, stores, retrieves, and archives (vouchers and check images) and routes source data to downstream processing activities which subsequently post to the taxpayer's account on Master File. In November 2020, the ISRP processing of remittances moved to electronic processing through the Treasury OTCnet system. The check data is uploaded to OTCnet daily and from OTCnet to the Federal Reserve Bank of Cleveland (FRB-C). Refer to IRM 21.5.7.3.4.15, Remittance Strategy Paper Check Conversion(RSPCC). Due to disclosure rules the actual tax account/TIN information is redacted and will not be visible on the copy sent to the taxpayer/financial institution. Access the RTR database using the payment date and amount (and if available the routing number) to retrieve the TIN and tax account information to determine the disposition/application of the payment.
Manual Deposits
21.5.7.3.4.2 (10-01-2003) Manual Deposits Deposit items that are not processed through ISRP must be processed through Manual Deposit, Lockbox or IDRS. These include unidentified deposits and re-deposits of dishonored checks. Receipt and Control prepare a payment posting voucher whenever a source document is not available and the remittance cannot be processed through Residual Remittance Processing System (RRPS). Remittances processed manually are underlined with a rocker symbol in green pencil, "green-rockered" on the return. Encoder information is on the back of the remittance. Remittances are applied instantaneously when applied to the taxpayer's account through IDRS. Receipt and Control prepare source documents for IDRS input. The National Cash Register (NCR) encoder is used for encoding and endorsing remittances not processed through Residual Remittance Processing System (RRPS). The DLN is not printed on the back of the check, but a sequence number is. You may use this sequence number to locate the encode tape for the DLN. Remittances indicate an endorsement with the agency location code of the office receiving the credit. See Exhibit 3.8.44-7, Agency Location Codes (ALC), which provides information on agency location codes.
Field Office Remittances
21.5.7.3.4.3 (10-01-2003) Field Office Remittances Field Office Payment Processing involves all payments received from the field office employees. Field offices use overnight services to transship the tax receipts to their designated Submission Processing Center. See IRM 3.8.47.5.4.1, Submission Processing Center/Field Office Alignment for Form 809 and Tax Payments. Cash remittances are converted to check or money order before sending for processing. Field office employees issue Form 809, Receipt for Payment of Taxes, when they receive cash. If payment is by check, money order, etc., a receipt is issued to the taxpayer. When the Field Office employee issues Form 809, it becomes a posting document. The only exception is when the remittance is submitted with an original return. Then, the original return becomes the posting document. If the payment cannot be located after all preliminary research is completed, prepare Form 4446, Payment Tracer Research Record, and forward the case to the Hardcore Payment Tracer Function (HPTF) at the campus that processed the payment, or processed the most recent payments.
Lockbox Payments
21.5.7.3.4.4 (10-01-2020) Lockbox Payments The Lockbox operation involves the processing of tax payments by commercial banks. This method of processing payments accelerates the handling and deposit of funds received and is forwarded to Treasury. Lockbox banks process payments for the following IMF products: CP 521, Installment Agreement Reminder Notice CP 523, Installment Agreement Default Notice Form 433-D, Installment Agreements Form 1040, U.S. Individual Income Tax Return Form 1040, International, now be processed for Austin SPC Form 1040-ES, Estimated Tax for Individuals Form 1040-NR, U.S. Nonresident Alien Income Tax Return Form 1040 (PR), Self-Employment Tax Return - Puerto Rico (In Spanish) Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) Form 1040-X, Amended U.S. Individual Income Tax Return Form 2159, Payroll Deduction Agreements Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax Form 9465, Installment Agreement Request Letter 3856, Monthly Reminder for Installment Agreement Payments or Letter 3856-A, Monthly Reminder for Installment Agreement Payments for Joint Liabilities Other installment payments Lockbox banks process payments for the following BMF products: CP 521, Installment Agreement Reminder Notice CP 523, Installment Agreement Default Notice Form 433-D, Installment Agreements Form 940 or Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return Form 941, Employer's Quarterly Federal Tax Return Form 943, Employer's Annual Federal Tax Return for Agricultural Employees Form 944, Employer's Annual Federal Tax Return Form 945, Annual Return of Withheld Federal Income Tax Form 1041-ES, Estimated Tax for Estates and Trusts Form 2159, Payroll Deduction Agreement Form 2290, Heavy Highway Vehicle Use Tax Return Form 9465, Installment Agreement Request Letter 3856, Monthly Reminder for Installment Agreement Payments or Letter 3856-A, Monthly Reminder for Installment Agreement Payments for Joint Liabilities Other installment payments Taxpayers mail remittances to the IRS at designated post office boxes for each form type. These addresses can be found in the instructions for the forms listed in (2) and (3) above. The bank encodes and endorses the remittance. The DLN, TIN, name control, received date, and tax period are virtually printed on the back of the check. The lockbox system generates an Optical Character Recognition (OCR) Remittance Register like the 813 Remittance Register. The DLN consists of a file location code (FLC), (the first two digits in the DLN), unique to lockbox processing. Use this number with the bank endorsement to determine the correct campus to research. All lockbox banks image checks, money orders, and vouchers can be viewed via RTR. If you need a copy of a check and the payment DLN has a list year of 6 (last digit of the DLN) or prior (all payments made prior to 2006), contact the appropriate Lockbox Coordinator from the Campus Lockbox Coordinators list on the SERP Who/Where tab under Lockbox Information. Note: Coordinators contact the lockbox banks when necessary.
Installment Agreement User Fee Lockbox Payments
21.5.7.3.4.5 (10-01-2013) Installment Agreement User Fee Lockbox Payments Taxpayers may request and obtain permission to pay a tax liability through installment payments even before a tax liability is determined. All payments received for installment agreements post as a TC 670 to the taxpayer's account. An automated sweep occurs at the IRS to apply user fees as appropriate. If a user fee payment cannot be located, transfer/reassign the case to the Compliance Services Collection Operation (CSCO), at the campus that processed the payment. CSCO researches the following User Fee Reports in Accounting: User Fee Block Detail Listing - Lists payment, payment date, and Batch/Block Number User Fee Batch/Block Totals Report - Lists block of payments for each date, Batch/Block Number, account number, number of items, and Batch/Block Amount User Fee Split Balance Report - Lists payments split between User Fees and Tax payments, Sequence Number, TIN, Remittance Amount, User Fee Amount, and Revenue amount (payment other than user fee amounts) User fees related to installment agreements are on IDRS under MFT 13 or 55. MFT 13 or 55 is created when the CP 521 is generated. A TC 971 AC 082 or 083 sent to Master File establishes the module. Unlike other MFT 13 or 55 accounts, no reference numbers appear. You must use CFOL command codes to research these modules. The user fee recovery program established a new category on the Installment Agreement Accounts List (IAAL), for duplicate payments. Use command code (CC) ADD/ADC24 to move payments found on MFTs 13 or 55. For additional information see IRM 5.19.1.6.4.6.3, User Fee Payment Transfer/User Fee Abatements.
Justice Department Lockbox Receipts
21.5.7.3.4.6 (10-01-2025) Justice Department Lockbox Receipts These receipts result from court actions and IRS referrals to Department of Justice (DOJ) for collection. Kansas City Processing Center (KCSPC) receives Standard Form 1081, Voucher and Schedule of Withdrawals and Credits, as notification of tax revenue secured by the (DOJ). If a taxpayer's cancelled remittance shows a DOJ endorsement: Transfer the case to KCSPC, HPTF. Issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to notify taxpayer the inquiry was transferred to KCSPC. Delay notices as appropriate. Prepare Form 3210, Document Transmittal, to include: Payment Tracer Request Department of Justice Payment Tracer Inquiry Accounting Control/Services Operation P.O. Box 24551 Kansas City, MO 64131 Taxpayer's name, TIN, and tax period Input STAUP or TC 470 Date Letter 86C was sent HPTF coordinates the resolution with Accounting personnel in accordance with IRM 3.17.30.14, Revenue Receipts.
Cashier's Check
21.5.7.3.4.7 (10-01-2020) Cashier's Check Cashier's checks may be purchased from banks or other financial institutions. Receipts or copies of personal checks, used to purchase cashier's checks, only serve as proof of payment to initiate research. The taxpayer is responsible for contacting the bank/vendor for a copy of the cancelled check. Row Number If And Then 1 Payment cannot be located Request a copy of the front and back of the cancelled cashier's check from taxpayer. If taxpayer can fax a copy of the cancelled cashier's check continue following "If and Then" boxes; otherwise, close the case. Input CC STAUP for 6 cycles. 2 Payment has not cleared the bank Taxpayer has not paid the balance due and the bank refuses to issue a duplicate check unless they have an indemnity (reimbursement) agreement from IRS Secure an indemnity agreement. Refer to IRM 21.3.4.7.7.4, Indemnity Agreements, and IRM 3.0.167.11, Indemnity Agreements, for guidance on Indemnity Agreements. 3 Payment has not cleared the bank Taxpayer has paid the balance due and the bank refuses to return the funds to the taxpayer unless they have an indemnity (reimbursement) agreement from IRS Refer to IRM 3.0.167.11.1, Submission Processing Procedures, to determine the information needed from the taxpayer in order to secure an Indemnity Agreement, and forward to the Headquarters Losses and Shortages Analyst listed in IRM 3.0.167.11.1 (6).
Money Orders
21.5.7.3.4.8 (10-01-2020) Money Orders Money order vendors leave the payee, payer, and date information blank on the money order. Taxpayer is responsible for providing this information. Row Number If And Then 1 Payment cannot be located Request that taxpayer contact vendor for photocopies of the money order. If taxpayer can fax a copy of the cancelled money order continue following "If and Then" boxes; otherwise, close the case. Input CC STAUP for 6 cycles. 2 Payment was received and processed but was dishonored due to insufficient funds Instruct the purchaser of the money order to contact the seller/issuer of the money order to obtain a replacement. 3 Payment was received and processed, but has not cleared with the bank/vendor Taxpayer has not paid the balance due and the bank/vendor refuses to issue a duplicate money order unless they have an indemnity (reimbursement) agreement from IRS. Refer to the procedures in IRM 21.3.4.7.7.4, Indemnity Agreements, and IRM 3.0.167.11, Indemnity Agreements, to secure an indemnity agreement. 4 Payment was received and processed, but has not cleared with the bank/vendor Taxpayer has paid the balance due by some other method but the bank/vendor refuses to return the funds to the taxpayer unless they have an indemnity (reimbursement) agreement from IRS Refer to IRM 3.0.167.11.1, Submission Processing Procedures, to determine the information that is needed from the taxpayer in order to secure an Indemnity Agreement, and forward to the Headquarters Losses and Shortages Analyst listed in IRM 3.0.167.11.1 (6).
Truncated Checks
21.5.7.3.4.9 (10-01-2003) Truncated Checks Truncated checks are carbonless copies of original checks. Financial institutions no longer return cancelled checks to their clients. If the payment cannot be located, send the taxpayer Letter 167C, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, to request they contact the bank for a microfilm or computer image of the check. Close the case and input CC STAUP for 6 cycles.
Cash Payments
21.5.7.3.4.10 (10-01-2004) Cash Payments Field/Area Offices issue Form 809, Receipt for Payment of Taxes, or a cash register receipt to taxpayer for cash payments. The tax return is validated at the time of receipt showing the amount and type of tax paid. The field/area office prepares Form 783, Remittance Register, or Form 795-A, Remittance and Return Report, to list the payments. These forms are sent to the Submission Processing campus. Research IDRS, including CC URINQ and CC XSINQ and RTR if available for these remittances. If unable to locate the payment, prepare Form 4446, Payment Tracer Research Record. Transfer the case to the HPTF at the campus that processed the payment or processed the most recent payments. HPTF verifies Form 813, Document Register, for the payment. HPTF contacts Internal Security, before allowing a substantiated credit from Account 6570, based on Form 809 as proof of payment. Note: If unable to locate, it may be necessary to contact the field/area office that took the payment in and request a copy of the money order purchased for the cash payment.
Automated Non-Master File (ANMF) Payments
21.5.7.3.4.11 (10-31-2018) Automated Non-Master File (ANMF) Payments A DLN with a tax class "6" (the 3rd digit of the DLN) identifies a payment as Non-Master File (NMF). A flashing "N" at the bottom of the CC ENMOD, CC SUMRY and CC TXMOD screens indicate there is a NMF account at another Submission Processing (SP) Center. To access the NMF account, an "N" is input after the TIN on CC SUMRY or CC TXMOD. Note: Centralization of all NMF accounts to the Kansas City Campus occurred in October 2018. Contact the Accounting NMF function for researching payments dated before 1992, pre-ANMF payments. If the payment is found in another campus, request the credit be transferred to taxpayer's account. Follow procedures in IRM 3.17.46, Automated Non-Master File Accounting, for requesting NMF research and transcripts. Note: January 1, 2001, Master File introduced the new MFT 31, Separate Assessment Module. MFT 31 contains split spousal assessments previously processed to the ANMF System. Any spousal assessments processed prior to January 1, 2001, remain on the ANMF and must be researched using the above NMF procedures. For more information regarding MFT 31, Split Spousal Assessments, refer to IRM 21.6.8, Split Spousal Assessments (MFT 31/MFT 65). Follow normal payment tracing procedures for MFT 31 accounts.
Foreign Remittances
21.5.7.3.4.12 (10-01-2007) Foreign Remittances All international or possession returns with remittances are deposited where received. As of July 1, 2007, IMF international returns are sent to the Austin campus and BMF international returns are sent to the Ogden campus. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have a U.S. bank's routing symbol printed in the lower left corner of the check and have a 9-digit routing number. These are processed as a regular deposit. Any foreign remittance including remittances that are payable in U. S. dollars, drawn on foreign banks, and received with tax returns or documents, that fail to meet any portion of (1) above are processed using manual deposit. The deposits are then mailed to Citibank in Wilmington, Delaware and numbered and processed as a foreign remittance. Receipt and Control processes source documents with remittances that are payable in foreign currency and drawn on foreign banks as manual deposits. The deposits are mailed to Citibank for a money conversion report. When foreign currency is received, Receipt and Control contacts Bank of America to convert foreign currency to U. S. dollars. The tax return or document is then processed using manual deposit guidelines. Each campus has specific deposit processing procedures. Refer to IRM 3.8.45.28, Specific Campuses Processing, for additional information. For additional information on foreign remittances, refer to IRM 3.8.45.16, Foreign Check Remittances, for additional information.
Free Items
21.5.7.3.4.13 (10-01-2005) Free Items If a taxpayer's cancelled check is stamped "FI" , it indicates the bank is holding credits belonging to taxpayer, referred to as "Free Items." If the case involves "Free Items" : Obtain a current transcript of the account. Prepare Form 4446, Payment Tracer Research Record. Route to the HPTF function at the campus center that is responsible for processing the payment when it is received. Note: The HPTF initiates action to obtain the credit from the bank.
Electronic Federal Tax Payment System (EFTPS)
21.5.7.3.4.14 (05-07-2025) Electronic Federal Tax Payment System (EFTPS) Electronic Federal Tax Payment System (EFTPS) is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes. EFT is a broad term used to describe digital transactions that move funds electronically between different financial institutions, bank accounts, or individuals. The system is programmed to accept payments for tax years 1954 and subsequent. Effective October 25, 2024, Pittsburgh National Corporation (PNC) and primary subcontractor Fiserv Corporation are authorized to operate EFTPS as the Treasury Financial Agent (TFA). From November 14, 2004 to October 24, 2024, the TFA was Bank of America/Merrill Lynch. Taxpayers must enroll with the financial agent for IRS pre-validation before using the system and can make payments to the financial agent by personal computer, telephone, or bank. EFTPS uses Automated Clearing House (ACH), a specific type of EFT, as a central clearing house facility where electronic funds transfer instructions are exchanged between banks. The two primary payment methods to transfer funds with EFTPS are ACH Credit and ACH Debit. ACH Credit - Payment method in which the taxpayer's financial institution initiates an electronic payment to the TFA. ACH Debit - Payment method in which the taxpayer directs the TFA to initiate an electronic debit of the taxpayer's bank account. Electronic funds withdrawal (EFW) is another method of paying electronically while filing electronically. The taxpayer authorizes an electronic withdrawal of funds from a designated checking or savings account during the e-file transaction. Note: Both EFTPS and EFW payments are electronic fund transfers. Payments made by EFT show File Location Code (FLC) numbers 81 as the primary, 82 and 83 as the overflow FLCs. File location codes 71 and 72 with Document Code 19 in the DLN were used prior to July 2005. The Electronic Funds Transfer Number replaced the TUS Number and Microfilm Serial Number. Payments processed through EFTPS can be identified through the EFT number shown on IDRS. Note: The first two digits of a 17-digit EFT number denote the Campus Code and are not entered into the CC EFTPS. The second digit in the EFT number is a "0" for electronic funds withdrawal (direct debit) payments. The second digit in the EFT number is a "6" for credit card payments. After taxpayers enter the information, EFTPS supplies an acknowledgment number to the taxpayer. Instruct taxpayers to write down this number and keep it for future reference. If there is any problem with the payment, this number allows IRS to trace the payment quickly. Payments made after January 1, 2004, are constructed using the chart in IRM 3.17.277.5.3, EFT Number. For payments made prior to January 1, 2004 customer service representatives can construct the EFT number from a taxpayer provided acknowledgment number using the following elements: Row Number Digit(s): Identify: 1 1 and 2 The Processing Campus. Refer to Document 6209, Section 4.3, Campus and File Location Codes. 2 3 The Financial Agent. 1 - JP Morgan Chase & Co. (Prior to March 2004) 2 - Bank of America 3 - BFS (formerly FMS) Treasury Offset Program 4 - Reserved 5 - RSPCC 3 4 The Payment Method. 0 - IRS e-file (Direct Debit) 1 - ACH Credit (EFTPS through your financial Institution) 2 - ACH Debit (EFTPS Direct) 3 - FR/ETA 4 - Reserved 5 - Levy 6 - Credit Card 7 - EFTPS - Online 8 - Railroad Retirement Board 9 - Government (FEDTAX II or Federal Payment Levy Program) 4 5 The Payment Indicator. This depends on the Payment Method. See IRM 3.17.277.5.3 (4), EFT Number, for details. 5 6–9 The Julian Date. This is the last digit of the year plus 001–366, or Last digit of the year plus 401–766. 6 10–11 The Bulk Provider Number. Refer to the NOTE below. 7 10–17, or 12–17 The Serial Numbers. These are Sequentially Assigned. Note: When the combined payment indicator (position 5) is 7, 8, or 9, positions 10 and 11 are used to identify the bulk filer who submitted the payment. All Bulk Providers are under Bank of America (BOA) effective 7/1/2005. CC EFTPS is a research tool developed primarily for payment tracer purposes. The command code researches the EFTPS data base for payment data and audit history. Research the payment using CC EFTPS by: Definer T - TIN, EFT Amount and Payment Date. Definer E - If the taxpayer supplied EFT Number. Reminder: The first two digits of a 17-digit EFT number denote the Campus Code and are not entered in the CC EFTPS. Definer R - Taxpayer supplied Reference Number (Confirmation Number for Credit Card Payments). Note: Refer to IRM 2.3.70, Command Code EFTPS, for additional information. Row Number If Then 1 The taxpayer does not have the EFT number Advise the taxpayer to Contact the EFTPS customer service center to obtain the EFT number. Refer to The Source under SERP Who/Where tab for telephone numbers. OR check their EFTPS payment history by accessing EFTPS.gov. 2 CC EFTPS indicates that EFTPS processed the payment to Master File with the correct taxpayer information; however, the payment has not posted to the tax module displayed Research the Closed Unpostable Register, GUF 57–40 at Ogden Campus (@29). All EFTPS payments are processed in Ogden. The payment does not show using CC ERINV or CC UPTIN@29 and the STATUS field on EFTPS output shows the payment is PROCESSING and does not show a name control in the NAME CONTROL field, send Form 4442, Inquiry Referral to the Ogden Campus EFTPS≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Reminder: Exhaust all research prior to sending a referral to EFTPS. Referrals must be complete and include a return fax number/email. For additional information, refer to IRM 3.12.38.3.5.2, Priority I Errors-Action Code/Unpostable Code, for additional information. 3 The CC EFTPS response indicates no records found for your input Recheck your input parameters and resubmit, or EFTPS did not receive the payment 4 The payment was not received by the EFTPS system and the taxpayer states a payment was made through a service provided by their financial institution Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent. If the payment still cannot be located, advise the taxpayer to obtain a paper proof of payment from their financial institution. Note: The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number to correct the taxpayer's account. 5 The payment was not received by the EFTPS system and the taxpayer states a payment was wired to the IRS Instruct the taxpayer to contact their financial institution and verify the Routing Transit Number (RTN) and the account number where the payment was sent. The financial institution may have to re-transmit the payment to the correct EFTPS receiving RTN and account number to correct the taxpayer's account. Note: Wire payments are processed through the Electronic Tax Application (ETA) at the Federal Reserve Bank of Minneapolis. Note: The acronym TEP, when shown in the status field on CC EFTPS, stands for Tape Editor Processor. EFPPS TEP is a systemic process that occurs daily to convert batches of transactions into data suitable for Master File processing. This status indicates the payment file, for the payment in question, was sent to ECC-MTB for processing and is no longer in EFPPS inventory. When this status is present, follow IRM 21.5.7.4, Resolving Missing Payments Procedures, to advise the taxpayer the payment has been located and is being processed. See IRM 3.17.277.6.7, Tape Editor Processor (TEP) for more information. Refer to IRM 3.17.277, Electronic Payments, for more information on EFTPS.
Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer
21.5.7.3.4.14.1 (06-11-2024) Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer Use the following procedures to trace payments made by electronic funds withdrawal (direct debit) or credit card. Obtain the following information from the taxpayer: Taxpayer's Name Taxpayer's TIN Date of Payment Amount of Payment Type of Tax Paid: Form 1040, U.S. Individual Income Tax Return, Form 1040 Balance Due Notice, Form 1040, Advanced Payment of Determined Deficiency, Form 1120 U.S. Corporation Income Tax Return Series, Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, Form 8868, Application for Extension of Time To File an Exempt Organization Return, Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, Form 1040-ES, Estimated Tax, Form 2350, Application for Extension of Time To File U.S. Income Tax Return, Form 941, Employer's QUARTERLY Federal Tax Return, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, Form 1041, U.S. Income Tax Return for Estates and Trusts, and Installment Agreement payments Tax Year Payment method (electronic funds withdrawal for an e-file and e-pay return or a credit card payment for an Integrated e-file and e-pay return, Pay by Phone, or Pay by Internet transaction) Credit Card Payment Confirmation Number (if paid by phone or Internet) or a Declaration Control Number (if paid through an Integrated e-file and e-pay option) Credit Card Service Provider (if payment method is credit card through either the phone or Internet) These payments are subsequently processed through EFTPS. Research EFTPS by following the EFTPS payment tracer guidelines and by using CC EFTPS to make sure the IRS processed the payment. Refer to the in IRM 21.5.7.3.2, Integrated Data Retrieval System (IDRS) Research for Payment, and IRM 21.5.7.3.7, Researching Unpostable Payments, to research payments and unpostable payments. Payments appear on CC EFTPS before posting to Master File. If the payment is found using CC EFTPS inform taxpayer the IRS received the payment. If the payment has posted, the EFT number on IDRS identifies it. If the payment cannot be found, check the unidentified remittance file. The fourth digit in the EFT number is a "0" for electronic funds withdrawal (direct debit) payments The fourth digit in the EFT number is a "6" for credit card payments Row Number If Then 1 The payment needs to be transferred The credit transfer transaction must include the Electronic Payment Indicator 2 The 1040 payment is resequencing at Master File waiting for the return to post Utilize CC EFTPS and CC IMFOL Definer Q to identify the receipt of the payment. Note: Electronic funds withdrawal transactions generally post to master file one to two cycles after the effective date of the payment. 3 The taxpayer e-filed the return with an electronic funds withdrawal (EFW) payment and the payment cannot be located by using CC EFTPS Check to see if the taxpayer properly entered the withdrawal request on the e-filed return by using CC TRDBV. Refer to IRM 21.7.4.4.4.15.1, Modernized e-file (MeF) - Electronic Filing of Corporate and Exempt Organization Returns, for information on electronically filed: Form 1120, Form 1120S and Form 990. On the first page of CC TRDBV, there is a list of forms filed with the return. The form that indicates the taxpayer requested an electronic funds withdrawal is titled "FORM-PYMNT" . The access code shown to the left of "FORM-PYMNT" may be entered on the top line of the CC TRDPG screen to bring up the FORM-PYMNT. The FORM-PYMNT shows the: RTN Bank Account Number Payment Amount Account Type (savings or checking) Date the Taxpayer Requested the Money be Withdrawn From Their Bank Account If CC TRDBV shows the "FORM-PYMNT" , the payment processed through EFTPS unless it was cancelled. If CC TRDBV does not show a "FORM-PYMT" , instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances. Note: Form 1040 balance due e-filed returns do not post until cycle 20 or one cycle after the full payment posts to the account, whichever occurs first. Credit card payments usually post 5-7 business days after the payment is completed and appear on the appropriate Taxpayer Information File (TIF) as a pending transaction using CC TXMOD. 4 The EFW payment was made via the Modernized e-File (MeF) System Access the Return Request and Display (RRD) application via Employee User Portal (EUP) to review the 'IRS Payment' or 'Index' thumbnails for an indication of payment(s) made with the return. 5 The credit card payment was made through an Integrated e-file and e-pay option Research CC EFTPS for the payment. If the payment is not shown, refer the taxpayer to their software package or tax professional for further assistance. 6 The credit card payment was made by phone or internet Check different tax periods to be sure the taxpayer did not select the wrong tax type (e.g., chose current year 1040-ES instead of prior year 1040). Also, verify what TIN was used for the transaction. Note: Joint filers who submitted the transaction under the secondary SSN instead of the primary SSN may require a credit transfer. Refer to IRM 21.5.7.3.2.2, Spousal Payments. 7 The credit card payment cannot be located using research, CC EFTPS and CC IMFOLQ or the unidentified remittance file, and the taxpayer has a confirmation number for a pay by phone or pay by Internet transaction - or the credit card payment was made through either a pay by phone or Internet option but the taxpayer does not have a confirmation number and no payment can be located on IRS records Refer the taxpayer to the service provider they used to trace the payment. If the last character of the credit card confirmation number (the number is 7 digits long) is: "1" - The payment was made through ACI Payments (formerly Official Payments Corporation) or through ChoicePay. "3" - The payment was made through Pay1040.com (Link2GovCorporation) or through Businesstaxpayment.com. "4" - The payment was made through PayUSAtax (WorldPay US, Inc.) Refer to IRM 21.2.1.48.6 (7), Credit or Debit Card Payments (Pay by Phone or Internet), for each company's contact information. 8 The credit card payment cannot be located, the service provider cannot verify the payment and the payment is not reflected on the credit card billing statement Instruct the taxpayer to make a payment for the full amount due and attach an explanation of the circumstances
Direct Debit Installment Agreements
21.5.7.3.4.14.2 (10-01-2016) Direct Debit Installment Agreements Direct Debit Installment Agreements (DDIA) is a Collection program. Taxpayers make arrangements to pay tax liabilities in installments via Electronic Funds Transfers. Refer to IRM 5.14.10.4, Direct Debit Installment Agreements, for additional information. Payments post to Master File as TC 670, Document Code 18, Blocking Series 800-899. Prepare Form 4446, Payment Tracer Research Record, and route to HPTF, if unable to locate the payment.
Remittance Strategy Paper Check Conversion (RSPCC)
21.5.7.3.4.15 (03-15-2023) Remittance Strategy Paper Check Conversion (RSPCC) As of January 2008, Remittance Strategy Paper Check Conversion (RSPCC) was implemented. It is a web-based system that enables AM Campus Support, Submission Processing (SP) campuses, and TAC offices to electronically process paper remittances at the point of receipt. Payments processed through RSPCC include those received in areas of the AM Campus Support Sites (Andover, Atlanta, Brookhaven, Memphis, and Philadelphia) such as Insolvency, Offer In Compromise (OIC), and Mis-directed payments, as well as payments for Offshore Voluntary Disclosure Program (OVDP) received at the Austin SP campus and payments received at Field Assistance (FA) TAC offices. Note: Effective November 2020, the ISRP processing of remittances has moved to electronic processing through the Treasury OTCnet system. Due to disclosure rules, the actual tax account/TIN information is redacted and will not be visible on the copy sent to the taxpayer/financial institution. Access the RTR database using the payment date and amount (and if available the routing number) to retrieve the TIN and tax account information to determine the disposition/application of the payment. Refer to IRM 21.5.7.3.4.1, Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS). Payments processed through RSPCC are scanned and electronically sent to the Bureau of the Fiscal Service (BFS) Over the Counter Channel Application (OTCnet) for deposit. RSPCC interfaces with the Electronic Federal Payment Posting System (EFPPS), which allows the taxpayer's payment information to post to Master File. The OTCnet system is a Treasury department system and because it is a treasury system the disclosure rules prohibit the actual tax account/TIN information from being communicated, therefore the tax account/TIN/tracer ID information is redacted and will not be visible on the copy sent to the taxpayer/financial institution. You will need to access the RTR database using the payment date and amount (and if available the routing number) to retrieve the TIN and tax account information to determine the disposition/application of the payment. OTCnet converts paper checks (personal and business) into electronic Automated Clearing House (ACH) debits or image documents that are cleared through the Check 21 network. Paper checks can be bank checks (personal or business), money orders, cashier's checks, credit card checks, and/or state and federal checks. See IRM 3.17.278, Paper Check Conversion (PCC) and Remittance Strategy Paper Check Conversion (RSPCC) Systems. Posting information of RSPCC payments is sent to EFPPS for Master File posting. The Ogden Accounting Function is the only site that has access to the RSPCC images as these files go through EFPPS/EFTPS. When Ogden Accounting Function requests an RSPCC image, the back of the check indicates: FRB Cleveland 0410-0603-3 US Tres DG If the taxpayer's RSPCC payment cannot be located using the information found in IRM 21.5.7.3.4.15.1, Researching RSPCC Payments, complete Form 4446, Payment Tracer Research Record, and mail the form to: Internal Revenue Service Ogden Submission Processing Center Payment Correction Team 37302 M/S 6264 P.O. Box 9941 Ogden, UT 84409.
Researching RSPCC Payments
21.5.7.3.4.15.1 (07-12-2021) Researching RSPCC Payments RSPCC payments are identified by a DLN beginning with 81, 82, or 83 and a 15-digit Electronic Funds Transfer (EFT) trace number on IDRS. Note: The EFT number that identifies an RSPCC payment is the same EFT number that identifies an EFTPS payment. The EFT trace on CC IMFOLT and CC BMFOLT is a 17-digit number with the first two numbers identifying the SP center code (e.g., 29 for Ogden) and the last 15 digits are the EFT number. Note: Taxpayers do not have to be enrolled in EFTPS for their payments to be processed through RSPCC and they do not have the EFT number. The EFT number for payments processed at AM campuses and Austin SP begin with 520. The EFT number for payments processed at TAC offices begin with 521, 522, 523, and 524. The eighth and ninth digits represent the site where the payment was processed. For a listing of all RSPCC EFT sites, refer to Exhibit 3.17.278-3, Field Assistance RSPCC Sites. Utilizing the information above, access the RTR system to locate the payment. Refer to IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System. Note: Payments processed through RSPCC do not have any IRS information stamped on the back of the check because disclosure rules prohibit the actual tax account/TIN information from being communicated. Therefore, the tax account/TIN/tracer ID information is redacted and will not be visible on the copy sent to the taxpayer/financial institution. You will need to access the RTR database using the payment date and amount (and if available the bank routing number) to retrieve the TIN and tax account information to determine the disposition/application of the payment. RSPCC payments are identified by the site identification number as follows: Row Number Site Identification Number 1 Andover 08 2 Atlanta 07 3 Brookhaven 19 4 Memphis 49 5 Philadelphia 28 6 FA TAC Offices 00 If you cannot locate the missing payment after performing preliminary research, refer to IRM 21.5.7.4.2 (2), Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for required preliminary research, then follow the procedures found in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF) to prepare the referral, Form 4446, Payment Tracer Research Record. Include the following information in the remarks section of the Form 4446: The taxpayer's contact number Notate "RSPCC Payment" Advise the taxpayer to allow 30 days to receive a response.
Lloyd's of London Taxpayers
21.5.7.3.4.16 (10-01-2007) Lloyd's of London Taxpayers Lloyd's of London makes quarterly deposits for some 1040ES/NR taxpayers via Electronic Funds Transfer (EFT). As of July 1, 2007, these deposits are made at the Kansas City campus only. For payments made to Philadelphia prior to July 2007, prepare Form 4446, Payment Tracer Research Record, and route to HPTF, in the Ogden campus if unable to locate the payment. HPTF researches the Fedwire Deposit System support listing maintained in Accounting by the payment date.
State Income Tax Levy Program (SITLP)
21.5.7.3.4.17 (10-01-2020) State Income Tax Levy Program (SITLP) The State Income Tax Levy Program (SITLP) is an automated levy program. SITLP matches a Master File database of delinquent taxpayers eligible to be levied, against a database of state tax refunds for each state participating in SITLP. Currently, this process only matches against IMF accounts. Refer any inquiries to the ACS toll-free telephone number using the Telephone Transfer Guide (TTG). Refer to IRM 5.19.9.3 (11), State Income Tax Levy Program (SITLP) General, for a listing of participating states. See IRM 5.19.9, Automated Levy Programs, for more information on SITLP inquiries, exclusion criteria, and appeals procedures. Martinsburg Computing Center (MCC) creates SITLP files for states to process biweekly. Files are created and shipped during even cycles. The states generally process the SITLP file for a two-week period, and creates a cartridge that is sent to the appropriate campus for processing. The state sends the cartridge with a paper check for the total amount of the SITLP levy proceeds to a SITLP Coordinator at the processing campus or transmits the payment electronically via EFTPS. Each state is required to send the taxpayer correspondence advising of the SITLP levy and refer any inquiries to the ACS toll-free telephone number. Taxpayers may receive the state notice weeks before the IRS notice, CP 92, Notice of Levy on State Refund Notice of Your Right to a Hearing, is issued. As a result, little information is available. This has resulted in telephone calls by IRS employees to state taxing agencies. FRONT-LINE ASSISTORS MUST NOT CALL STATE TAXING AGENCIES. When it is determined that a taxpayer is not excluded from the SITLP levy, the combination of a TC 971 AC 600 and a TC 670 designated payment code (DPC) 20/21 on a tax module generates the CP 92. Row Number If Then 1 A TC 971 AC 600 is present without a corresponding TC 670 DPC 20 or 21 It is likely the levy proceeds are forthcoming, or previously applied to other modules 2 Both the TC 971 AC 600 and a TC 670 DPC 20/21 present The SITLP levy proceeds were applied to the tax module 3 The taxpayer wants to resolve the remaining balance. Transfer the call to ACS per the TTG for them to negotiate payment of the balance due 4 The SITLP levy was erroneous Issue a manual refund. Note: Wrongful levy cases and urgent situations requiring refunding of SITLP payments must be discussed with the SITLP Coordinator. They determine if a wrongful levy situation has occurred or if the State needs to be contacted. The SITLP Coordinator Listing can be found by selecting State Income Tax Levy Program (SITLP) Coordinators under the Who/Where tab on the SERP Home Page. 5 After completing all research and the payment is not located, Per IRM 5.19.9.3.6 (4), Taxpayer Contacts on SITLP Notices, you need to allow 6 weeks for the SITLP payment to post. Prepare Form 4446, Payment Tracer Research Record, and route to HPTF.
Payment Tracer Procedures for Form 8038-T
21.5.7.3.4.18 (10-01-2003) Payment Tracer Procedures for Form 8038-T Missing payments related to tax-exempt bonds (TEBs) received with Form 8038-T, Arbitrage Rebate, Yield Reduction, and Penalty in Lieu of Arbitrage Rebate, are worked at the Ogden Accounts Management Campus (OAMC) in the Exempt Organization Accounts Team. Form 8038-T is the only tax-exempt bond that is received with a remittance (with the exception of closing agreements). The remittance is identified as the green-rockered money and processed as a TC 610 to the Master File. Tranship payment tracer cases withForm 8038-T to OAMC, Exempt Organization Accounts Team using Form 3210, Document Transmittal. Ogden follows the procedures in IRM 21.7.7.7.4.3, TEB Payment Tracer Procedures, to resolve the case.
Criminal Restitution Payments, AKA Court Ordered Restitution Payments
21.5.7.3.4.19 (04-27-2022) Criminal Restitution Payments, AKA Court Ordered Restitution Payments Restitution is a legal remedy that can be ordered by the court, in a criminal case. A restitution order requires the criminal defendant to pay money or render services to victims in order to redress the loss the defendant has inflicted. Normally imposed during sentencing, it can be agreed to by the parties in a plea agreement or imposed as a condition of probation or supervised release. Restitution is generally limited to losses caused by the offense(s) of conviction. The major exception to this general rule is in cases involving plea agreements. The parties to a plea agreement in any criminal tax case may agree to restitution in an amount greater than the loss attributable to the offense(s). For restitution orders entered after August 16, 2010, IRC 6201(a) was amended to allow the IRS to assess and collect the amount of restitution ordered in a criminal case for failure to pay any tax imposed by the IRC in the same manner as if such amount is a tax. Prior to the amendment, IRS could not take administrative collection action to collect the restitution amount unless the tax was assessed in a separate civil proceeding. Conditions of probation and restitution ordered in a document signed by the judge are called Judgment and Commitment orders. Judgment and Commitment Orders normally specify that defendants must submit restitution payments to the office of the clerk of court in the district in which the defendant was sentenced. This generally includes restitution payments required to be paid to the IRS. The clerk of court has the responsibility for receiving, processing, and recording restitution payments made by defendants. The clerk of court forwards the money (Treasury checks, personal checks, and/or money order) to the victim(s) listed in the restitution order, which may include the IRS. Criminal restitution payments made to the IRS are mailed to the address below. The clerk of court offices disburses criminal restitution payments to the IRS by issuing Treasury checks to the IRS. Effective October 1, 2009, all criminal restitution payments to the IRS are processed by Submission Processing at the Kansas City Campus only. The clerk of court offices received instructions to send all criminal restitution payments to the following address: Internal Revenue Service - ACOIRS - RACS Attn: DOJ/Criminal Restitution Mail Stop 6261P - 6, 333 W Pershing Road Kansas City, MO 64108 Note: Criminal restitution payments found in IRS offices or campuses other than Kansas City, must be transshipped via overnight traceable method per Manual Deposit IRM 3.8.45.7.26, Department of Justice/Criminal Restitution Program Payments (KCSPC Only). For inquiries regarding missing court ordered restitution payments or if taxpayer's cancelled check shows a Department of Justice (DOJ) endorsement, contact Kansas City DOJ/Criminal Restitution team at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. For receipt and reconciliation of criminal restitution payments, and for information regarding their payments and balance, taxpayers can contact the court district where restitution was ordered. In connection with prosecutions for identity theft, refund schemes and tax evasion, state courts sometimes order defendants to pay restitution to the IRS. The IRS has communicated to the states the proper address to send restitution payments, which is the address in (6) above, but to a different M/S: Attn: M/S 6261 Special Services Team Note: The transmittal needs to indicate "State Restitution/Special Services Team" . Further information regarding criminal restitution payments can be found in IRM 3.17.243.7.8.8, Restitution Based Assessment (RBA) Non-Master File (NMF) Accounts.
IRS Direct Pay
21.5.7.3.4.20 (11-14-2024) IRS Direct Pay IRS Direct Pay is a payment application that is available to Individual Master File (IMF) and Business Master File (BMF) taxpayers through irs.gov. Refer to IRM 21.2.1.48.2, IRS Direct Pay, for additional information regarding this payment method. Refer to IRM 21.2.1.48.2.1, Responding to IRS Direct Pay Inquiries, regarding verification of payments made through IRS Direct Pay.
Remittance Not Processed - Paper Check Not Cashed
21.5.7.3.5 (06-09-2025) Remittance Not Processed - Paper Check Not Cashed Consider the following if the taxpayer insists they mailed a remittance that has not been processed and cashed: Row Number If And Then 1 The taxpayer HAS NOT issued a replacement check HAS NOT stopped payment Advise the taxpayer to stop payment on their check. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges. Encourage the taxpayer to use IRS Direct Pay (or EFTPS) to submit payment. Refer to IRM 21.2.1.48.2, IRS Direct Pay, or IRM 21.2.1.47 , Electronic Federal Tax Payment System (EFTPS) Same day Wire, for additional information. If unable to use IRS Direct Pay (or EFTPS), advise the taxpayer to submit payment with correspondence and an explanation. The taxpayer will need to provide proof of timely mailing of the original payment in order to change the date of the subsequent payment to the date of the original payment. A managerial decision must be made to change the date of the subsequent payment to the date of the original payment. 2 The taxpayer HAS NOT issued a replacement check HAS stopped payment Encourage the taxpayer to use IRS Direct Pay (or EFTPS) to submit payment. Refer to IRM 21.2.1.48.2, IRS Direct Pay, or IRM 21.2.1.47 , Electronic Federal Tax Payment System (EFTPS) Same day Wire, for additional information. If unable to use IRS Direct Pay (or EFTPS), advise the taxpayer to submit payment with correspondence and an explanation. Continue processing according to details shown below for "HAS issued a replacement check." 3 The taxpayer HAS issued a replacement check HAS NOT stopped payment Advise the taxpayer to stop payment on their check. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges. Research for the replacement payment to be sure the payment has been posted to the correct module/account. The taxpayer will need to provide proof of timely mailing of the original payment in order to change the date of the subsequent payment to the date of the original payment. A managerial decision must be made to change the date of the subsequent payment to the date of the original payment. 4 The taxpayer HAS issued a replacement check HAS stopped payment Research for the replacement payment to be sure the payment has been posted to the correct module/account. The taxpayer will need to provide proof of timely mailing of the original payment in order to change the date of the subsequent payment to the date of the original payment. A managerial decision must be made to change the date of the subsequent payment to the date of the original payment. Request a manual lien release (TC 582, lien indicator) in the following situations: Systemic release of the lien will not occur Action taken fully satisfies all outstanding liabilities and will take longer than 30 days to post Account fully satisfied and more than 30 days have passed Refer to the procedures in IRM 5.12.3.3.1, Liability is Satisfied - IRC 6325 (a)(1), for manual lien releases. If you have access to the Automated Lien System (ALS), input the lien release. Employees without access to ALS must submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Case Processing (CCP) Lien Teams. Contact information for the CCP can be found by selecting Centralized Case Processing (CCP) Lien Teams.
Researching Unidentified Remittances and Excess Collection File
21.5.7.3.6 (03-14-2025) Researching Unidentified Remittances and Excess Collection File Payments less than one year old which could not be applied to specific taxpayers and/or tax periods are moved to the Unidentified Remittance File (URF). Research the URF, Account 4620, using IDRS CC URINQ. Refer to the procedures in IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF). Payments more than one year old which could not be applied can be researched in the Excess Collection File (XSF), Account 6800, using CC XSINQ. Refer to the procedures in IRM 3.17.220, Excess Collections File. Note: Accounts with credits moved to the URF or XSF should show a TC 971 AC 296 posted to IDRS on the module payment/credit posted to. This indicates all research of the primary and related TINs was completed prior to the transfer into the URF or XSF. Research URF using CC URINQ or XSF using CC XSINQ by the: Amount of remittance Name control DLN When payments are found in these accounts: Prepare Form 8765, IDRS Control File Credit Application. Refer to IRM 21.5.7.4.4.2, Form 8765, IDRS Control File Credit Application, for additional information. Route the form and supporting evidence to the unidentified remittance/excess collection function in the Accounting Control/Services Operation at the campus that applied the funds to URF/XSF. The Campus can be identified by the first two digits of the Credit Reversal DLN. Input an IDRS history indicating the form number and site to which the documentation is forwarded (e.g. "F8765 2OSC" ). Close your case if there are no other issues that must be addressed. See IRM 21.5.2.4.19, Verifying Complete Adjustments. Release TC 470, if applicable, using a posting delay code for 2 cycles to allow time for the credit to post. See IRM 21.5.2.4.17, Posting Delay Code (PDC), for more information. Notify the taxpayer the missing payment has been found. Advise the taxpayer to allow 4 - 6 weeks for a refund or corrected balance due notice. Reminder: Credits must be cleared by the Statute function, if applicable.
Researching Unpostable Payments
21.5.7.3.7 (05-07-2024) Researching Unpostable Payments The transactions that fail validity checks (a system of checks-and-balances applied by the computer) and cannot post to Master File are referred to as "unpostables" . Each unpostable is assigned a 3-digit unpostable code which identifies the reason or condition that prevented the transaction from posting. Unpostable codes have a 1-digit reason code. Unpostable payments appear as Unnn on CC TXMOD. Do NOT send these cases to the Hardcore Payment Tracer Function (HPTF). Research unpostable payments on IDRS using the following commands: CC UPTIN - displays all open and closed unpostables for a specific TIN. CC UPDIS - displays details for a specific sequence number; upon entering CC UPDIS, CC UPRES is generated. Note: The Integrated Automation Technologies (IAT) UP Histories Tool is designed to help users with research and input of histories on open unpostables. See the UP Histories job aid located on the IAT SharePoint for more on using the tool. When you locate a payment in open unpostables use CC UPCAS with Definer "Z" to input the payment information to resolve the unpostable condition. The Unpostable function makes the correction(s) based on this information. Close the payment tracer case and notify the taxpayer. Follow procedures in IRM 21.5.5.3.3, Responding to Taxpayer Inquiries on an Open Unpostable, for a time frame to provide the taxpayer. When you locate a closed unpostable payment, follow procedures in IRM 21.5.5.3.4, Responding to Taxpayer Inquiries on a Closed Unpostable, for a time frame to provide to the taxpayer. See IRM 21.5.5, Unpostables, and Document 6209, Section 8B Master File Codes - Unpostables and Resequence, for more information on unpostables.
Researching Error Resolution Conditions
21.5.7.3.8 (10-29-2024) Researching Error Resolution Conditions When documents are rejected from normal processing because of incomplete or incorrect information, they fall out to the Error Resolution System (ERS). ERS is used to correct these documents. To determine if a return/document is in ERS, access the ERS Control File using CC ERINV. Enter ERINV followed by a space and any of the following: The primary TIN (no hyphens) The complete 14-digit DLN (with hyphens) The Block DLN with XX in place of the serial number (with hyphens) Example: Research CC ERINV by TIN − ERINV XXXXXXXXX (no hyphens) Research CC ERINV by DLN − ERINV XXXXX-XXX-XXXXX-X (hyphens) Note: The IAT RESULT Tool can be used to research ERS CC ERINV provides the ERS status code. These codes identify if the item is workable, unworkable, in suspense or if the document has been referred to another area. Refer to Exhibit 3.12.37-21, ERS Status Codes, for IMF and Exhibit 3.12.38-3, ERS Status Codes (Inventory), for BMF. If you locate the missing payment after researching CC ERINV, close your payment tracer case and notify the taxpayer. Advise the taxpayer to allow 60 days for resolution. To convey information to ERS, submit a Form 4442, Inquiry Referral, to ERS. Refer to IRM 21.4.1.4.1.2.6 (14), Error Resolution System (ERS) Status Codes, for the fax/EEFax numbers. See IRM 21.5.7.3.11 (4), Researching Payments Processed with Incomplete Information (SSN as all zeros or Tax Periods with a Month of 13), for a list of items to include when sending a referral.
Researching Reject Registers
21.5.7.3.9 (10-01-2016) Researching Reject Registers A reject sequence number in IDRS indicates if there is a reject transaction on the taxpayer's account. The reject transaction has no effect on the IDRS balance. An alpha reject sequence code appears on IDRS: C - Resolved transaction no longer on the ERS Suspense Files - Closed Case O - Transaction is still on the Generalized Mainframe Framework (GMF) Reject or ERS Inventory Files - Open Case S - Transaction is open on the ERS Suspense Files - Open Case Notate the reject sequence number on Form 4446, Payment Tracer Research Record, and send to the Hardcore Payment Tracer Function (HPTF). Refer to IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information.
Lost Payment for Electronically Filed (ELF) Returns
21.5.7.3.10 (10-29-2024) Lost Payment for Electronically Filed (ELF) Returns Consider the following if the taxpayer states they filed their return electronically and then sent in a remittance and the payment has not processed and posted to the taxpayer's account: If And Then The taxpayer HAS NOT issued a replacement check HAS/HAS NOT stopped payment Encourage the taxpayer to use IRS Direct Pay, or EFTPS for a BMF account, to submit payment. Refer to IRM 21.2.1.48.2, IRS Direct Pay, for additional information. If unable to use IRS Direct Pay or EFTPS, advise the taxpayer to submit payment with correspondence, an explanation and proof of original payment. A managerial decision must be made to change the date of the subsequent payment to the date the taxpayer claims the original payment was made. See IRM 21.5.8.4.2, Determining Correct Credit Transfer Format, when a payment date change is needed. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges, if needed. The taxpayer HAS issued a replacement check HAS/HAS NOT stopped payment A managerial decision must be made to change the date of the subsequent payment to the date the taxpayer claims the original payment was made. See IRM 21.5.8.4.2, Determining Correct Credit Transfer Format, when a payment date change is needed. Refer to the procedures in IRM 21.5.7.4.4.4, Form 8546, Claim for Reimbursement of Bank Charges, if needed.
Researching Payments Processed with Incomplete Information (SSN as all zeros or Tax Periods with a Month of 13)
21.5.7.3.11 (10-29-2024) Researching Payments Processed with Incomplete Information (SSN as all zeros or Tax Periods with a Month of 13) Incomplete Processing Records – Remittances received at the Lockbox site that do not contain all the processing information (TIN, Name Control, Tax Year or Tax Type (MFT) will be force processed. Refer to IRM 3.12.10.6.5.2, Special Procedures for Lockbox Incomplete Processing Records, and IRM 3.12.10.3.7, Lockbox Unprocessables Reduction - Basic Manual IDRS Research for Payment Perfection (Special Payment Perfection Procedures). Primary Social Security Number This field may contain all zeros (000-00-0000) when the SSN is illegible or cannot be determined. Tax Period This field may contain the number 13 as the month. Name Control This field may contain up to four periods (.) when the name control is illegible or cannot be determined. The entry of invalid data causes a systemic reject of the record into the SPC ERS inventory for research and correction while allowing the check to be immediately deposited. Once rejected, the ERS tax examiner completes the necessary research, posts the payment to the correct taxpayer's account and notates the posting information in the Remittance Transaction Research (RTR) System record. Customer Service Representatives (CSR) who receive inquiries regarding payments withdrawn from the taxpayer's account, but not applied to their tax liability, must access RTR for the notes left by SPC ERS regarding the application of the payments. If RTR has a note indicating "URF" , "6800 acct" or "4620 acct" , this means the funds have been sent to the Unidentified Remittance File (URF) or Excess Collections File (XSF). Refer to IRM 21.5.7.3.6, Researching Unidentified Remittances and Excess Collection File. If RTR has a note indicating an SSN where the payment was posted, research the SSN indicated for the payment and move the payment to the correct account indicated by the taxpayer. If the payment has unposted on the module indicated in the RTR notes, follow instructions found in IRM 21.5.7.3.7, Researching Unpostable Payments. If the payment has not been applied/identified correctly by SPC ERS and the needed information has not been notated in RTR: Row Number If And Then 1 A telephone contact The caller can provide the correct application information Obtain the correct application information from the taxpayer. Place a hold on the balance due. Refer to IRM 21.5.2.4.8.2, Suppressing Balance Due Notices. Convey the following information to ERS The DLN of the payment The taxpayer's TIN The taxpayer's full name(s) The amount of the payment The date of the payment Proof of payment See IRM 21.5.7.4.6.10, Absolute Proof of Payment by submitting a Form 4442, Inquiry Referral, to ERS. Refer to IRM 21.4.1.4.1.2.6 (14), Error Resolution System (ERS) Status Codes, for the fax/EEfax number that is associated with the first two digits of the payment DLN. Notate your actions as well as the correct posting information in AMS. Inform the taxpayer, You have placed a hold on their account and to allow 60 days for processing. This problem/issue with their payment occurred because they did not include the required information on their check or money order. Refer to IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order. 2 A correspondence The correct application information is provided Print your CII case. Convey the information to ERS by attaching the CII case to a Form 4442, Inquiry Referral, to ERS. Note: Do not indicate on the Form 4442 that all of the information needed can be found in CII. Attach the CII case as indicated above. The ERS area does not have access to CII Include the following information on the Form 4442 The DLN of the payment The taxpayer's TIN The taxpayer's full name(s) The amount of the payment The date of the payment Proof of payment See IRM 21.5.7.4.6.10, Absolute Proof of Payment Refer to IRM 21.4.1.4.1.2.6 (14), Error Resolution System (ERS) Status Codes, for the fax/EEfax number that is associated with the first two digits of the payment DLN. Notate your actions as well as the correct posting information in AMS. Place a hold on the balance due. Refer to IRM 21.5.2.4.8.2, Suppressing Balance Due Notices. Close your control base if there are no other issues to address. Refer to IRM 21.5.2.4.19, Verifying Complete Adjustments. If corresponding with the taxpayer, advise to allow 60 days and refer to IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order. 3 The referral is returned to the originator indicating the payment is no longer in ERS inventory The payment is not posted to the taxpayer's account Forward Form 4446 to HPTF. Refer to the procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information.
Resolving Missing Payments Procedures
21.5.7.4 (10-01-2013) Resolving Missing Payments Procedures Payments are identified by Campus, Lockbox, Field Processing methods or Bank Endorsements. The different types of methods and systems used to make and record payments are: Cashier's Checks Cash Payments Criminal restitution payments made to the clerk of court office, AKA Court-ordered Restitution Payments Direct Debit Installment Agreements Electronic Federal Tax Payment System (EFTPS) Electronic Funds Withdrawal Federal Tax Deposits Free Items Field Office Remittances Foreign Remittances Integrated Submission and Remittance Processing System (ISRP) Lockbox Payments Justice Department Lockbox Receipts Installment Agreement User Fee Lockbox Payments Manual Deposits Money Orders Non-Master File Payments Payments for Lloyd's of London Taxpayer Payments Made by Credit Cards Remittance Strategy Paper Check Conversion (RSPCC) Remittance Transaction Research (RTR) System Residual Remittance Processing System (RRPS) Service Center Recognition Image Processing System (SCRIPS) State Income Tax Levy Program Payments (SITLP) Treasury Bonds Truncated checks When a payment is received via EFTPS and the taxpayer does not have the Electronic Funds Transfer (EFT) number, follow procedures in IRM 21.5.7.3.4.14, Electronic Federal Tax Payment System (EFTPS). The taxpayer may check their own EFTPS payment history by accessing https://www.eftps.gov/eftps/. When a payment is processed via RSPCC and posted to master-file through EFPPS, the taxpayers do not receive an EFT number. Follow the procedures in IRM 21.5.7.3.4.15, Remittance Strategy Paper Check Conversion (RSPCC). If the taxpayer indicates a payment was attached to the tax return but has not cleared the bank, follow procedures in IRM 21.5.7.3.5, Remittance Left Attached to the Return. If a payment has posted to the wrong account and must be transferred, follow procedures in IRM 21.5.8, Credit Transfers. Research all accounts completely to resolve a payment tracer inquiry. Only prepare a referral e.g., Form 4446, Payment Tracer Research Record, after all research is complete and the payments cannot be located. Notify taxpayer when you locate the payment. Follow procedures in IRM 21.5.7.4.5, Letters and Notices.
Delay Notices and Offsets
21.5.7.4.1 (10-01-2016) Delay Notices and Offsets Any employee working a payment tracer case is responsible for delaying notices and/or refund offsets. Use CC STAUP to update an account in IDRS notice status. This command code generates a history item and converts the module to status 48. This action suppresses all balance due notices, except the first notice. Contact the Notice Review function if a notice must be stopped. TC 470 suspends all IDRS notices and offsets for 15 weeks. Use TC 470 if taxpayer files a claim or CC STAUP cannot be used. Refer to IRM 21.5.6.4.45, W- Freeze, for additional information on delaying offsets.
Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF)
21.5.7.4.2 (06-09-2025) Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF) If the missing payment cannot be found by performing the preliminary research listed in (2) below, then: Prepare Form 4446, Payment Tracer Research Record Document all research Forward the case to the Hardcore Payment Tracer Function (HPTF) as indicated below: Row Number If Payment Processed at: Then Route to: 1 Andover, Atlanta, Fresno or Kansas City Kansas City HPTF 2 Austin Austin HPTF 3 Brookhaven, Cincinnati, Memphis, Ogden or Philadelphia Ogden HPTF Reminder: Payments do not post during the dead cycles. Do not complete HPTF referrals until after performing preliminary research and the dead cycles have passed. Indicate on the Form 4446 preliminary research including: Use the IAT TC Search Tool. Refer to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools. Document all IDRS and CFOL research performed, including CC IMFOL, CC BMFOL, CC URINQ, CC XSINQ, CC UPTIN, CC SCFTR, and Automated Non-Master File (ANMF) research. Refer to IRM 21.5.7.3.4.11, Automated Non-Master File (ANMF) Payments, for additional information on ANMF payments. See IRM 21.5.7.3.4.14.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer, for RTR EFTPS and unpostables research if applicable. Document any additional information obtained by phone or fax to resolve the case. The completed Form 4446, Payment Tracer Research Record must be sent via Enterprise Electronic Fax (EEfax) when available, instead of manual faxing or interoffice mail. When completing Form 4446, you are required to enter your employee IDRS number. DO NOT enter your IRS Badge Number. Exception: Hardcore Payment Tracer Teams in Kansas City have an organizational mailbox as a central place to receive payment tracer referrals. When sending Forms 4446 to Kansas City, utilize the email address found on the Hardcore Payment Tracer Addresses page as the first option for routing to Kansas City. Attach any supporting documentation to the Form 4446, including the following, if applicable: A copy of the front and back of the taxpayer's cancelled remittance Taxpayer's bank statements Copy of the payment posting document, Form 813, Document Register, if a potential mixed/slipped block condition is discovered; this is also needed for encoding errors Note: Do not attach copies of the command codes researched to the Form 4446, unless the research performed provides supporting documentation for the trace. If EEfax is not available, print your CII case, prepare a Form 1725, Routing Slip, and attach the Form 4446. Advise the taxpayer to allow up to 120 calendar days for processing. Close the control through CII/AMS. Note: Refer to Hardcore Payment Tracer Addresses on SERP for additional information when completing the routing slip. Note: All EFTPS Hardcore Payment Tracers (HCPT) are processed by the Ogden Service Center. Refer to the EFTPS Payment Tracers page on SERP when forwarding the required documentation. When preparing the Form 4446, be sure to include the EFTPS 15-digit tracking number that begins with a "2" , a confirmation number, or an IMaDD number. If working a telephone inquiry: Prepare Form 4446 after documenting all research performed Attach any faxed documentation Refer to HPTF at the campus that processed the payment or processed the most recent payments if unable to determine who processed the missing payment For mailing addresses, telephone numbers, and EEfax numbers in each campus, refer to Hardcore Payment Tracer Addresses on the Who/Where tab on SERP Advise the taxpayer to allow 120 days for processing Make sure the Form 4446 is complete and includes the taxpayer's name, TIN, and phone number (include the phone number in the Preliminary Research section of the Form 4446.). HPTF may return incomplete or illegible Forms 4446 and request additional research or information. HPTF must not reject Form 4446 if the site does not have access to the information. Managerial or approving official must review and sign the completed form to ensure all available preliminary research was completed. Place a closed control on the IDRS module indicating "44462HPTF" using "PAYT" as the category code. HPTF opens a new control when they receive the case. The HPTF located in Accounting Services/Control Operation, is responsible for working complex payment tracer cases after all preliminary research is exhausted. Use the telephone and fax machine to obtain additional information needed to resolve the case. This expedites the resolution process. If unable to reach taxpayer via telephone (at least two attempts), use the appropriate "C letter" . HPTF reviews Form 4446 to be sure the necessary research and documentation was prepared before accepting the payment tracer case. HPTF rejects incomplete cases through the team manager with an explanation of the corrective action required. Reminder: Every type of payment does not require the same amount of documentation to be accepted by the HPTF. HPTF cases usually involve complex conditions such as: Piggyback checks, encoding errors, and deposit discrepancies that cannot be resolved during preliminary research Non-Master File (NMF) cases (tax class 6 in DLN). Refer to IRM 21.5.7.3.4.11, Automated Non-Master File (ANMF) Payments, for additional information Unpostable codes 140 or 399 from the unpostable unit Field office payments without a field office or RRPS endorsement Closed unpostable cases Slipped/Mixed entity or block conditions involving more than three taxpayer accounts. Refer to IRM 21.5.7.4.6.2, Mixed/Slipped Blocks Payments over seven years old not located in the Excess Collection Files Reject transactions Electronic payments not located through specified research Department of Justice (DOJ) Criminal Restitution Program and DOJ Lockbox Receipts processed at the Kansas City Submission Processing Center (KCSPC). Refer to KCSPC HPTF. Follow procedures in IRM 21.5.7.3.4.6, Justice Department Lockbox Receipts Criminal restitution payments made to the clerk of court office Form 809, Receipt for Payment of Taxes, or cash register receipt payments, after preliminary research "Free" Items Caution: Only send dishonored checks to the HPTF if you have proof the check was cashed. HPTF may transfer cases to other campus HPTF, if applicable. In most situations, the case will already be in the campus that processed the payment. If a refund should be issued, HPTF applies the tentative substantiated credit, with received date and amount indicated on the proof of payment, within 10 working days of receipt in HPTF. HPTF is responsible for all subsequent communication with taxpayer after they accept the case.
Payment Tracers with Collection Issues
21.5.7.4.3 (11-16-2023) Payment Tracers with Collection Issues Payment tracer cases with collection issues are routed per IRM 21.3.3.4.8.2, Campus Collection Function Correspondence/Inquiry/Notice. Transfer telephone contacts about payment tracers with collections issues to ACS phones following the Telephone Transfer Guide.
Payment Tracer Forms
21.5.7.4.4 (10-01-2013) Payment Tracer Forms Special forms are prepared for payment tracer cases. These forms are: Form 4446, Payment Tracer Research Record Form 8765, IDRS Control File Credit Application Form 3809, Miscellaneous Adjustment Voucher (HPTF only) Form 8546, Claim for Reimbursement of Bank Charges Form 11357, Integrated Submission and Remittance Processing Image Retrieval Request
Form 4446, Payment Tracer Research Record
21.5.7.4.4.1 (10-01-2019) Form 4446, Payment Tracer Research Record Form 4446, Payment Tracer Research Record, is used to refer a payment tracer case to the Hardcore Payment Tracer Function (HPTF) after performing preliminary research and reviewing information provided by the taxpayer/bank. Refer to IRM 21.5.7.4.2 (2), Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information. Do not use Form 4442, Inquiry Referral, for payment tracer case referrals to HPTF. Refer to IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for procedures to complete the Form 4446 and routing to HPTF. FTD cases must have a legible copy of the front and back of the cancelled payment attached to the Form 4446. Note: To determine which campus processed the FTD coupon, look at who processed the most current payments. The address of the taxpayer on the check can also lead you to the correct campus, although this is not true in all cases.
Form 8765, IDRS Control File Credit Application
21.5.7.4.4.2 (11-19-2008) Form 8765, IDRS Control File Credit Application When the missing payment is in the Unidentified Remittance File (URF) or Excess Collection File (XSF), application of the credit cannot be made by persons outside the Unidentified/Excess Collection function. Form 8765, IDRS Control File Credit Application, is used to request Unidentified/Excess to transfer money from the URF and XSF to the taxpayer's account. Note: The Unidentified/Excess Collection function is usually located in the Accounting Control/Services Operation. Any campus Accounting Control/Services Operation can place funds in URF/XSF; however, transferring money from URF/XSF must be done by the campus that placed funds in URF/XSF. The Campus can be identified by the first two digits of the Credit Reversal DLN. Contact number can be found by selecting Excess Collection under the Who/Where tab on the SERP home page. The request must identify where to apply the money and supply the documentation from the taxpayer, including: TIN Name Control Dollar amount MFT Tax Period Ending Control Number Remarks (required entry) Date, name, and employee IDRS number of Form 8765 preparer Form 8765 must have documentation attached identifying the credit as well as justifying its requested application through correspondence, research performed, etc. If Unidentified/Excess Collection function receives the Form 8765 without this documentation or without proper completion of all required entries, the Unidentified/Excess Collection function returns the Form 8765 to the requestor. If required by another IRM, make sure all specific documentation on credits of $100,000 or more are recorded on, or attached to, the Form 8765 (i.e., research for finding phone numbers, phone call attempts, managerial approval, or RTR prints). For additional information about preparing the Form 8765, refer to IRM 3.17.10.3.10 (5), Applying Credit to a Taxpayer's Account, and IRM 3.17.220.2.12, Applying Amounts from the XSF--General, for additional information. For statute expired/imminent periods, refer to IRM 25.6.1.7.3.3 (4), Transferring Credits From the XSF.
Form 3809, Miscellaneous Adjustment Voucher
21.5.7.4.4.3 (10-01-2003) Form 3809, Miscellaneous Adjustment Voucher Only HPTF prepares Form 3809, Miscellaneous Adjustment Voucher, for a TC 760, Substantiated Credit Payment Allowance, to: Allow and reverse tentative substantiated credit from Account 6570 Allow a credit from Account 7650, Losses and Shortages
Form 8546, Claim for Reimbursement of Bank Charges
21.5.7.4.4.4 (12-19-2005) Form 8546, Claim for Reimbursement of Bank Charges IRS may reimburse taxpayers for bank charges resulting from loss or misplacement of taxpayers' checks during processing. Taxpayers file Form 8546, Claim for Reimbursement of Bank Charges, in this situation. If Then Taxpayer requests a reimbursement of bank charges Send taxpayer a Form 8546 with taxpayer's service center return address. Taxpayer submits Form 8546 Send Form 8546 to Accounting.
Delays in Processing Federal Tax Deposits (FTD)
21.5.7.4.4.5 (10-01-2010) Delays in Processing Federal Tax Deposits (FTD) Follow procedures in IRM 20.1.4.24.2, Misdated Deposits.
Letters and Notices
21.5.7.4.5 (10-01-2015) Letters and Notices Notify taxpayer when the payment is located using: Letter 672C, Payment(s) Located and/or Applied CP 62, Notice of Credit Transfer, IMF notice generated when credits are transferred CP 225, Missing Payment Applied, BMF notice generated when credits are transferred To request additional information from the taxpayer, use a Letter 167C, Payment Missing: Copy of Check/Money Order/Cashier's Check Requested. To notify the taxpayer that the payment tracer case is being transferred to another office, use Letter 86C. See IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquire/Forms to Another Office. Refer to IRM 21.5.1.5.1 (8), CII General Guidelines, for instructions on capturing the REQUEST COMPLETE screen of CC LETER.
Processing Complex Payment Tracers
21.5.7.4.6 (10-01-2003) Processing Complex Payment Tracers The following subsections identify complex payment tracer cases and actions to take to locate the payments.
Encoding Errors and Piggy-Back Checks
21.5.7.4.6.1 (03-16-2021) Encoding Errors and Piggy-Back Checks Encoding errors occur when a check is encoded for a different amount than the amount for which the check was written. Improper handling of remittances causes a discrepancy between the records of the depository bank and the campus. Piggy-back checks are two checks attached that are run through the encoding machine as one. The front check is encoded on the face only. The second check is endorsed on the back only. The taxpayer's IRS account is credited for the first check amount. The taxpayer's bank account is debited for the total of both checks. The checks may or may not be from the same taxpayer. Contact the taxpayer for a copy of the bank statement for two months, the month showing the amount deducted from the account, plus the following month. Follow e-4442/Form 4442, Inquiry Referral, procedures for required information if the information is not received by end of day, refer to IRM 21.3.5.4.2, How to Prepare a Referral. If the taxpayer submits a check for the difference, when they send a copy of the bank statement, close the case. Process the subsequent payment with the original received date. Refer to Campus Mailing Addresses, if the taxpayer is unable to fax the information and needs to send it in. If Then Taxpayers account was not fully debited Advise taxpayer to send a payment for the difference Taxpayer's account was fully debited Forward Form 4446 to HPTF. Refer to the procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information. If the encoding error is on a money order or cashier's check, advise the taxpayer to contact the vendor for a photocopy of the front and back of the money order or cashier's check. If Then The money order/cashier's check was cashed and the venders account was debited for an incorrect amount (less than the amount of the money order/cashier's check) Advise the caller to obtain the balance from the vendor and send a payment for the difference. The money order/cashier's check was cashed, the vendors account was debited for the correct amount, but the module credited for an incorrect amount Advise the caller to fax you a copy of the front and back of the money order/cashier's check. Provide applicable fax number and cover-sheet information. Prepare Form 4446 and forward to HPTF. Refer to the procedures in IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF), for additional information. A returned refund check posts as TC 841 if the deposit discrepancy or encoding error resulted in a refund. If And Then Credit did not belong to the taxpayer Payment is less than 1 year old Transfer payment to Account 4620, Unidentified Remittance File (URF) with Form 2424, Account Adjustment Voucher. Refer to Exhibit 3.11.10-18, Form 2424, Account Adjustment Voucher, for additional information. Credit did not belong to the taxpayer Payment is 1 year old or more Transfer payment to Account 6800, Excess Collection File (XSF) with Form 8758, Excess Collections File Addition. Refer to IRM 3.17.220.2.2.1, Preparation of Form 8758, for additional information. Research the following: Account 4620, Unidentified Remittances File (URF), using CC URINQ for payments encoded for less than the amount of the check, and the payments are less than one year old. Account 6800, Excess Collections File (XSF), using CC XSINQ for payments encoded for less than the amount of the check, and over one year old. For additional information on transferring payments to or moving payments from the URF or XSF file, refer to IRM 21.5.7.4.4.2, Form 8765, IDRS Control File Credit Application, IRM 3.17.10.3, Unidentified Remittance File (URF), and IRM 3.17.220, Excess Collections File, for additional information. If you cannot locate the payment, refer the case to HPTF with the following documentation attached: Copy of the remittance(s) IDRS print of the tax module Taxpayer's bank statements Any other related documents HPTF performs research and contact the bank for the credit.
Mixed/Slipped Blocks
21.5.7.4.6.2 (10-01-2003) Mixed/Slipped Blocks A mixed or slipped block condition is created if the payment documents and the Remittance Processing System (RPS) printing are out of sequence. The RPS 813 is usually correct, but the DLN and the money amount printed on the remittance and supporting documents are for the preceding taxpayer. This condition can occur at any point in the block and continue through the end of the block. If the payment DLN indicates a missing payment posted to the account of an unrelated taxpayer: Request the entire block Research at least five accounts before and five accounts after the taxpayer's account Note: For ISRP/RRPS blocks, refer to IRM 21.5.7.3.4.1, Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS), for additional information. Do not request the entire block if the payment can be researched on RTR.
Multiple/Split Remittances
21.5.7.4.6.3 (10-01-2003) Multiple/Split Remittances Multiple remittance is two or more checks received with one return/document or received for one tax period. "M" is annotated in the upper left margin of the document and remittance. The number of checks follows the "M" (e.g., M3 = 3 checks, 1 return). A split remittance is one check received for more than one return/document or for more than one tax period. "S" is annotated in the upper left margin of each document and remittance. The number of returns and/or periods follows the "S" (e.g., S2 = 2 returns, 1 check). Note: Lockbox processing shows the serial numbers on the checks. Some checks are printed with the DLN(s) of the returns. Using the date of the payment, research: CC IMFOL/CC BMFOL CC SUMRY/CC TXMOD/CC MFTRA If Then Total payments do not equal the multiple or split remittance Request a copy of the front and back of the check from the taxpayer, if not already provided. Request the block using CC ESTAB. For ISRP/RRPS payment, see paragraphs (4) and (5) below. You cannot locate the payment(s) with a copy of the check or block and all preliminary research is completed Prepare Form 4446 and send the case to HPTF at the campus that processed the payment or processed the most recent payments if unable to determine who processed the missing payment. ISRP/RRPS MULTIPLE REMITTANCES: Inputting the DLN from the back of the check using CC ESTAB allows you to secure the electronic voucher and all related checks of the multiple. ISRP/RRPS SPLIT REMITTANCES: If you request the DLN from the back of the check using CC ESTAB, you only receive the last electronic voucher input. To secure all related vouchers from the split, the Remittance Processing System Identification (RPSID) number must be searched. For more information on ISRP/RRPS payments, refer to IRM 21.5.7.3.4.1, Integrated Submission and Remittance Processing (ISRP) and Residual Remittance Processing System (RRPS). Example: If the remittance was applied to three accounts, research two RPSID and sequence numbers before and after the one on the check. HPTF requests the encoding tapes to compare the money amounts on Document 813 and validate the amount. If the tapes are unavailable, they request copies of the check from the depository.
Refund Check to Be Applied as a Payment
21.5.7.4.6.4 (10-01-2016) Refund Check to Be Applied as a Payment Taxpayers sometimes return refund checks to be applied as payments. A TC 841 must be on the tax module with a prior TC 840 or TC 846. The credits post when the IRS receives the refund check from the taxpayer. Row Number If And Then 1 Credit was applied to incorrect module Refer to IRM 21.4.3.5.1, Checks Returned to Regional Financial Center (RFC) by the Taxpayer or U.S. Postal Service, and IRM 21.5.8.4, IDRS Guidelines for Credit Transfers, for additional information. 2 Credit was applied to incorrect taxpayer's account A refund was issued Refer to IRM 21.4.5.2, Erroneous Refunds Overview, to initiate erroneous refund procedures. 3 Credit was not applied Refer case to the Campus Accounts Management Refund Inquiry Unit.
Payment Located and Not Available for Transfer
21.5.7.4.6.5 (10-01-2013) Payment Located and Not Available for Transfer If the taxpayer's payments are applied to an incorrect tax period, transfer the payment to the correct module if the credit is still available (refund not issued). If Then Payment refunded Follow procedures in IRM 21.4.5, Erroneous Refunds. Payment is scheduled for refund within 3 cycles (including "Q" freeze expirations) Input a refund deletion request (CC NOREF). Monitor the account and transfer credit after TC 841 posts. Note: For IMF accounts, refer to IRM 21.4.1.5.10, Refund Intercept Command Code NOREF with Definer P, for procedures on intercepting refunds. For intercepting refunds on BMF accounts and the cutoff days and time frames, refer to IRM 3.14.2.7.1, Refund Intercepts using Command Code (CC) NOREF. If the payment was applied to satisfy another tax liability take the following actions: Row Number If Then 1 The Refund Statute Expiration Date (RSED) has expired, do not transfer or refund Refer to the procedures in IRM 25.6, Statute of Limitations. 2 The taxpayer requests the payment be transferred Inform the taxpayer that more interest and/or penalty may be due on the debited module. After transferring the payment, tell the taxpayer how the payment was applied. Request the taxpayer pay the additional interest and penalty due on the debited module. Note: If necessary, send the taxpayer a transcript indicating where the payment was applied to satisfy another tax liability. 3 The payment posted to an account and created a credit status less than the payment Transfer the payment and notify taxpayer of the balance due.
Payment Applied to a Different Taxpayer's Account/TIN
21.5.7.4.6.6 (10-01-2020) Payment Applied to a Different Taxpayer's Account/TIN If the taxpayer's payment is applied to an incorrect account: Transfer the credit to the correct account. CP 60, Credit Reversal Adjustment Notice, Individual Master File (IMF) or CP 260, Credit Reversal Adjustment, Business Master File (BMF), generates automatically notifying the incorrect taxpayer of a balance due of more than ≡ ≡ ≡ ≡ ≡ ≡. If balance due is less than ≡ ≡ ≡, a TC 606 systemically posts to the account. Refer to IRM 21.5.2.4.8.3, Clearance Tolerances, for additional information. Follow Category D Erroneous Refund procedures if misapplied payment caused an erroneous refund. Refer to IRM 21.4.5, Erroneous Refunds, for additional information. When IMF payments are found under the secondary taxpayer's SSN on a joint return: Input a credit transfer to the correct account(s). Note: Refer to IRM 21.5.7.3.2.2, Spousal Payments. Remind the taxpayer to refer to the primary SSN for all future payments. Review primary account and adjust any restricted penalties and/or interest, refer to IRM 5.1.12, Cases Requiring Special Handling, for additional information.
Payment Applied, Account Not Fully Satisfied
21.5.7.4.6.7 (10-02-2023) Payment Applied, Account Not Fully Satisfied After all AM account actions have been completed, refer to IRM 21.1.1.3.1, Accounts Management (AM) Customer Service Representative (CSR) Duties Handling Accounts with Balance Due/Missing Returns.
Altered and/or Stolen Taxpayer Payments
21.5.7.4.6.8 (10-01-2025) Altered and/or Stolen Taxpayer Payments Altered or stolen remittances mean payments that are either: Endorsed or made payable to someone other than the IRS, (e.g., Payee name line changed, employee embezzlement), or Have a changed amount. Refer to IRM 3.0.167.5.3, Altered Remittances, and IRM 21.3.4.7.16.1, Altered and/or Stolen Taxpayer Payments, for additional information. If the taxpayer indicates the payment was altered or stolen, request the following information: Photocopy of both sides of the remittance (e.g., cancelled check, money order) Home and business telephone numbers If the taxpayer cannot provide a copy, such as a money order, request a copy of the customer's receipt plus a statement that it was made payable to IRS or the Department of the Treasury. When the copy of the payment is received and/or all research is performed: Establish an open control base using category code "PYMT" , status code A, and input TC 470 with no closing code. Monitor so that no inappropriate notices generate for the amount in question. Transfer the call or refer the case to ACS for them to negotiate payment of the balance due Prepare referral Form 4442/e4442, Inquiry Referral, and route entire case using Form 3210, Document Transmittal, to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations. Refer to IRM 5.1.3.4.4.1.1, Alternate Reporting Method to Contact TIGTA, for additional information when routing the case to TIGTA. Send a complete copy of the case, including Form 3210, Form 4442, and all research to the Remittance Security Coordinator (RSC) located in the Submission Processing Program and Analysis Staff of the campus having jurisdiction for that account. Refer to IRM 3.0.167.4.1, Remittance Security Coordinator, for additional information. Note: The RSC makes sure the control base is reassigned to HPTF (If the control base is not reassigned after one week, contact the RSC). HPTF receives altered/stolen payment cases from the RSC to close the originator's control base and re-open under HPTF control. Use category PYMT. Send appropriate "C" letter to the taxpayer notifying them their case is being referred to another office for further investigation. Request a manual lien release when a lien is on the account (TC 582, lien indicator) and the altered or stolen payment fully satisfies all outstanding liabilities. Refer to IRM 5.12.3.3.1 (5), Liability is Satisfied - IRC 6325(a)(1), regarding manual lien releases. If you have access to the Automated Lien System (ALS), input the lien release. If you do not have access to ALS, submit Form 13794, Request for Release or Partial Release of Federal Tax Lien, to the Centralized Case Processing (CCP) Lien Teams. Contact information for the CCP can be found by selecting Centralized Case Processing (CCP) Lien Teams.
Payment Not Located
21.5.7.4.6.9 (10-01-2021) Payment Not Located If you do not have a copy of the cancelled check, obtain an image of the remittance from RTR or request a copy of both sides of the remittance from the taxpayer. Refer to IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System, for additional information. If the encoding information has been redacted from the taxpayer's copy of the check, refer to IRM 21.5.7.3.4.15.1, Researching RSPCC Payments. If you do not locate the payment, advise the taxpayer to place a stop payment on their payment and encourage them to use IRS Direct Pay to submit payment. If the payment was for a BMF account, encourage them to use the EFTPS system to submit a payment. Refer to IRM 21.2.1.48.2, IRS Direct Pay, and refer to IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS), for additional information. Row Number If Then 1 The missing payment does not fully satisfy the balance due Transfer the call to ACS per the TTG for them to negotiate payment of the balance due 2 The missing payment fully satisfies the balance Input CC STAUP or TC 470 with a Closing Code 93. Refer to IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, for additional information. 3 The copy of the remittance was provided and you cannot locate the payment, complete all necessary research Prepare Form 4446, Payment Tracer Research Record, and attach copy of the cancelled check and copies of all research documents. If applicable, send appropriate "C" letter. Forward to HPTF function in the campus that processed the payment.
Absolute Proof of Payment
21.5.7.4.6.10 (10-01-2007) Absolute Proof of Payment Absolute proof of payment is conclusive evidence that IRS received a payment, for example,: Cash receipts (Form 809 or IRS National Cash Register (NCR) receipts) Cancelled checks Negotiated money orders Negotiated cashier's checks Narrative descriptions of endorsements by banks, money order vendors, and IRS employees (e.g., Revenue Officers) NCR receipts must identify the Register Number, time, date, office location and type and amount of tax paid. Absolute proof a Federal Tax Deposit (FTD) was made is the verification or acknowledgment of a payment submitted to a commercial or Federal Reserve Bank. This proof can be: A cancelled check for the amount of payment, made payable to and negotiated by a commercial depository or a Federal Reserve Bank. Have the bank verify the credit was deposited in the Treasury Tax Loan Account (TT&L). A commercial bank or federal tax deposit receipt for the amount of payment. A photocopy of the FTD coupon received in the FTD processing campus. A transmittal showing the deposit in question was received and processed without adjustment. If an adjustment was made, verify the deposit was not included. When a lien is on the account (TC 582, lien indicator) and the payment fully satisfies all outstanding liabilities, request a manual lien release. See IRM 5.12.3.3.1 (5), Liability is Satisfied - IRC 6325(a)(1), regarding manual lien releases. If you have access to the Automated Lien System (ALS), input the lien release. If you do not have access to ALS, submit Form 13794, Request for Release or Partial Release of Federal Tax Lien, to the Centralized Case Processing (CCP) Lien Teams. Contact information for the CCP can be found by selecting Centralized Case Processing (CCP) Lien Teams.
Source: official text