Piggyback Remittances

Piggyback remittances occur when more than one check stick together and are processed as one check, the top remittance being the only one really processed but not endorsed. The bottom payment is endorsed, but it and any other checks between it and the top remittance have not been included in the deposit ticket and are not processed (free items).

Ensure that the taxpayer has not submitted a replacement check.

If a replacement check has not been submitted, prepare Form 3244 and Form 4287, listing the information for proper credit application and hand carry to the Deposit Activity.

If a replacement check has been processed, compare the payment dates of the original payment and replacement check. If not the same, a date change should be input so that it reflects the earliest received date. See IRM 21.5.8, Credit Transfers, for instructions. Return the piggyback remittance to the taxpayer with a brief note informing the taxpayer that the date will be changed so that they are given credit for the original received date.

A listing of free items may be received from the depositary with an SF 215, Deposit Ticket.

Research taxpayer's account for an open module.

If a free item can be identified, prepare Form 3244 using the date of the original deposit ticket with which the check had been sent to the bank as the "Transaction Date" and the entity information of the module you identified.

If a free item cannot be identified, prepare Form 3244 using the date of the original deposit ticket with which the check had been sent to the bank as the "Transaction Date" and entering "URF" in "Remarks." Enter item to the URF and include copies of the Form 813, the remittance and MRS in the case file.

Hand-carry Form 3244s and free items to the Deposit Activity.