Erroneous Refunds

The Erroneous Refund journals provide for the individual control and journalizing of erroneous refund case files. This occurs after specifying the necessary recovery type.

When an Erroneous Refund is established in Account 1510 and repayment is not made, additional collection procedures may be necessary.

There are several types of Erroneous Refunds: Court Case (Account 1530), Criminal Investigations (CI) Court Ordered (Account 1535), Payment Over Cancellation (Account 1543), Non-Court Case (Account 1540), and Identity theft Erroneous Refunds (Account 1545).

Each case is controlled with a unique Document Number on Form 3809. This document number enables individual case tracking from inception to completion.

These are the valid accounts for Erroneous Refund case files.

Account Number

DR/DR

Account Name

Erroneous Refund (journal #480) (opposite is available to reverse Court Case)

1510

Debit

Other Receivable, Reg

1530

Debit

Court Case Erroneous Refund (Credit to clear Court Case)

1540

Debit

Non-Court Case Erroneous Refund (Credit to clear Court Case)

1543

Debit

Payment Over Cancellation

1545

Debit

Set-Up ID Theft

1545

Credit

Close ID Theft

1510

Credit

Other Receivables Regular (Debit to clear Court Case)

4120

Credit

SPC Suspense for MF-BMF (Debit to clear Court Case)

4220

Credit

SPC Suspense for MF-IMF (Debit to clear Court Case)

4252

Credit

SPC Suspense for MF-IRAF (Debit to clear Court Case)

4420

Credit

SPC Suspense for NMF (Debit to clear Court Case)

Non-Payment of Erroneous Refund (journal #485)

4910

Debit

Disbursement, Loss

1530

Credit

Court Case Erroneous Refund

1535

Debit

CI Court Ordered

1540

Credit

Non-Court Case Erroneous Refund

Clear Erroneous Refund (journal #490)

Write-Off

6600

Debit

Accounts Cleared, Statute

4910

Credit

Disbursement, Loss

Relief

6920

Debit

Disbursement Write-Off

4910

Credit

Disbursement, Loss

ID Theft Non Payment

6905

Debit

ID Theft Err Refund W/O

1545

Credit

ID Theft Erroneous Refund

Reimbursement (IPAC)

4970

Debit

Unapplied Refund Reversal

This table describes the steps required to complete journal numbers 480, 485 and 490.

Step

Prompt

Description / Action

Select or Enter

RACS Main Menu

Select Accounting Application.

Apply

Accounting Application Main Menu

Record

Select Erroneous Refund, Non-Payment of Erroneous Refund, or Clear Erroneous Refund.

Tab or Apply

Account Period

Accept the highlighted current month or select the future month. From the Action Bar select...

Apply

Maintain Source Journal

Document Number

Enter the number assigned to the erroneous refund.

Tab Key

Prepare Date

Enter the date in MM-DD-YYYY format.

Enter or Add Button

Maintain Journal Entry

Select the appropriate Ledger Classification.

Tab Key

Amount

Enter the amount associated with the selected IRS account.

OK Button

Repeat if another erroneous refund has an amount, or select...

Cancel Button

Maintain Source Journal

Review input data. If correct, select...

OK Button

If information is not correct...

Edit or Delete Button

If Non-Payment of Erroneous Refund, continue with:

Maintain Transaction Journal

Select Court Case, Non-Court Case, or ID Theft from the Possible Source Journals. From the Action Bar select...

Action then Add

Maintain Source Journal

Document Number

Enter Case Number.

Tab Key

Prepare Date

Enter date in MM-DD-YYYY format.

Maintain Journal Entry

Select Court Case, Non-Court Case Erroneous Refund, or ID Theft Err Refund.

Tab Key

Amount

Enter the amount associated with the selected IRS account.

OK Button

Repeat if another account has an amount. If other accounts are available but not required

Cancel Button

Maintain Source Journal

Review input data. If Correct, select...

OK Button

In all cases, continue with:

Maintain Transaction Journal

Message

Select Message to enter up to 256 characters of audit trail information.

OK Button

Post

Review input data. If correct...

Post Button