Payments Made in Foreign Currency

Purpose. This IRM section provides guidance to revenue officers on processing payments made in foreign currency and payments made from foreign sources.

Audience. The audience is revenue officers in Small Business/Self-Employed (SB/SE) Field Collection.

Policy Owner. The Director of Collection Policy is responsible for issuing policy for the International program.

Program Owner. The program owner is Collection Policy, Global Strategic Compliance, an organization within SB/SE Division.

Primary Stakeholders. The primary stakeholder is SB/SE Collection.

Program Goals. By following the processes described in this IRM, users will be able to properly process payments made in foreign currency and payments made from foreign sources.

This IRM provides international revenue officers information on different methods of payment available to international taxpayers that reside overseas, especially for those taxpayers who do not have a U.S. bank account.

Congress has delegated to the IRS the responsibility of administering the tax laws, known as the Internal Revenue Code, found in Title 26 of the United States Code. Congress enacts these tax laws, and the IRS enforces them.

The Director, Collection Policy is the executive responsible for the policy and procedures to be employed by Collection personnel.

Field Collection group managers and territory managers are responsible for ensuring the guidance and procedures described in this IRM are complied with.

Program Reports:

Reviews:

Group Managers are required to oversee group remittance processing activities, including monitoring Form(s) 5919, Teller's Error Advice, sent to their group.

This table lists commonly used acronyms and their definitions:

Additional information and guidance on international collection issues can be found in the following IRM sections.

Publication 54 advises taxpayers that they must pay their taxes in U.S. dollars. However, sometimes a taxpayer will send a payment in foreign currency and is unable or unwilling to substitute the payment for one in U.S. dollars.

Use Form 3244, Payments Posting Voucher, to post a payment made in foreign currency.

Prepare Form 3244 as follows:

Attach Form 3244 and the payment to the daily Form 795.

Taxpayers may make payment by a credit card issued by a foreign bank, provided it is a credit card accepted by IRS processors, e.g., Visa or Mastercard.

See IRM 5.1.2.6.4.2, Credit Card, and IRM 21.2.1.48.5, Credit or Debit Card Payments (Pay by Phone or Internet), for additional information.

Taxpayers who reside outside the United States may pay federal tax payments by electronic transfer.

See IRM 5.1.2.6.4.3, Federal Tax Application (FTA) Same-day Wire, for guidelines on making federal tax payments by electronic transfer.

If the taxpayer does not have a U.S. bank account or is not affiliated with a U.S. bank, a cash management account can be used through the Electronic Federal Tax Payment System (EFTPS).

A cash management account uses a Routing Transit Number (RTN), also known as the American Banking Association (ABA) number, for brokerage houses to receive payments for stock transactions from taxpayers living outside and inside the U.S.

The RTN/ABA number used from the cash management account can be used to set up a PIN and password with EFTPS and therefore can be used to make payments to the IRS.

There are no fees associated with payments using a Cash Management Account.