IRS PROVIDES MAGNETIC TAPE FILING GUIDELINES FOR REFUND OFFSET PROGRAM.

PART A. GENERAL

     SECTION 1. PURPOSE

     SECTION 1. INTRODUCTION

.01 This revenue procedure gives the requirements and conditions for filing pre-offset address request, annual certification, weekly update and agency address records for federal debts that are eligible for the Federal Income Tax Refund Offset Program. This revenue procedure is issued under the authority contained in section 6402(c) and (d) and section 6103(1)(10) of the Internal Revenue Code, section 301.6402-5 of the regulations, and section 301.6402-6T of the temporary regulations.

SEC. 2. SCOPE

01. Included in this revenue procedure are requirements for:

(1) submitting pre-offset address request records to secure the address from the taxpayer's latest income tax return to be used by the agency when notifying a taxpayer of a potential offset;

(2) submitting annual certification records for inclusion on the Debtor Master File;

(3) submitting federal agency addresses and contacts for inclusion on IRS offset notices to taxpayers; and

(4) submitting weekly updates to: 1) delete or decrease a previously certified debt; or 2) show that the federal agency has refunded a previous federal income tax refund offset to a taxpayer; or 3) correct the amount (decrease) of a previously submitted refund record.

02. See Part A. Section 13 for information regarding disclosure and safeguard requirements.

03. This revenue procedure contains specifications for the following agency-submitted records:

          (1) transmitter-annual pre-offset address request record;

06. Specifications for the Electronic Data Transfer header and control records that appear only on files returned to EDT agencies are in sections 24-27 in Part B.

                            Exhibit A.2-1

01. Reporting schedules, test file schedules and production schedules are revised for DMF Year 1992, Part A, Sec. 5 and 6.

02. The complete foreign address will be returned to the agency on the Service-annual pre-offset address request record, Part B, Sec. 8.

03. The instate telephone number requirements on the Transmitter-agency address request record were changed to allow for a toll-free or collect option, Part B, Sec. 15.

04. The backup fax number for MCC has been changed, Part A, page 14, 20, 38 and 42.

SEC. 4. DEFINITIONS

01. Agency Code--This is a two digit numeric code assigned by IRS to identify the federal agency involved. The term 'agency', as used in this document, is the department level within the federal government. One agency code will be assigned to an agency (department). Different functions within a department may be assigned a subagency code or a series of subagency codes (see definition below). Records submitted for a unique agency code must be consolidated before to being sent to IRS. IRS will return consolidated records to a single data processing center.

02. Agency Case Number--This is the identifying number of the obligor's file at the submitting agency. Field is optional. The IRS recommends use by agencies who do not use the SSN as the primary account/case number.

03. Agency Locator Code (ALC)--The agency locator code is a unique identifier assigned to every government agency for reporting receipts and disbursements for each agency. An ALC is necessary to participate in the OPAC system.

04. Agency Refund--A refund issued by the agency to an obligor because an IRS Offset resulted in an overpayment of the obligation.

05. Delinquent Date--Date the obligation became delinquent. Certification records with a delinquent date 10 years old or more by the first offset cycle effective date will be returned (except judgement debts). In addition, the delinquent date must be at least 3 months old as of the beginning of the program year.

06. DMF Account--A record that was created because a certification by a federal agency's claim that has matched an account on the IMF. This record has an entity section and at least one agency subsection.

07. Electronic Data Transfer (EDT)--The electronic data transfer is the process that allows agencies to transfer their data from a personal computer to the MCC IBM mainframe and allows MCC to transfer from mainframe to agency PC.

08. File--In this revenue procedure, a file has all records submitted by a transmitter.

09. GOALS--GOALS stands for Government On-Line Accounting Link System. GOALS is an automated accounting system designed by the Department of Treasury through which federal agencies can transmit and receive accounting and financial data.

10. IMF--The Individual Master File is a comprehensive file containing entity information and transaction activity for each individual taxpayer account.

11. Invalid Segment--The portion of the IMF that contains all SSN's that are invalid. Accounts are invalid if the SSN and name control do not match the SSA database containing all SSN's issued and all valid name controls associated with each SSN. Records submitted for invalid SSN's will be returned to the submitting agency and will not cause a refund freeze or allow a refund offset.

12. Local Code--This is a three digit code used to associate an agency address record (agency name, address, telephone numbers) with an individual obligor for use on IRS offset notices. A local code of "000" is required for each subagency.

13. MCC--Martinsburg Computing Center located in Martinsburg, WV. This is the Internal Revenue Service processing site.

14. Name Control

(1) When cases (original certifications and updates) are submitted to the IRS for processing, the SSN and name control fields are used for matching against the taxpayer's account. Records that do not match exactly on SSN and name control will be returned to the submitting agency. To ensure that submissions are processable, the following examples show the proper manner to derive the name control field:

 NAME                                                    NAME CONTROL

(2) Although names, and therefore name controls, may change on the IMF and on agency files, the name control sent on the certification file must be retained and used on any subsequent weekly update records.

15. Obligor--The person against whom a federal agency has certified a delinquent debt.

16. OPAC--The On-Line Payment and Collection System option of GOALS is an automated accounting system used to transfer the funds weekly to the participating agencies.

17. Special Character--Any character that is not numeric, alpha or blank.

18. Spousal Claim--A return filed by a spouse whose share of a joint overpayment had been applied to the other spouse's debt. The allowable amount of the claim will be refunded to the non-obligatory spouse and deducted from the offsetting agency.

19. SSA--Social Security Administration.

20. SSN--Social Security Number assigned by SSA.

21. Subagency Code--This is a two digit alphanumeric code assigned by the agency (the IRS prefers alpha only). The agency must consider the type of delinquent accounts an obligor may have. If multiple accounts are present, a separate subagency code must be used to collect each debt. This code may be any alphanumeric combination. Zero is a valid subagency code. All subagency codes assigned by an agency must be approved by IRS.

22. Transmitter--Participating federal agencies preparing files.

SEC. 5. REPORTING SCHEDULES/TRANSMITTAL FORMS

01. Reserved

02. Weekly reporting/transfer of On-Line Payment and Collection System (OPAC) Schedule--The Tax Refund Offset Program is a reimbursable program and all participating agencies reimburse the IRS for all administrative costs. This is done through the OPAC System option on GOALS. The actual transfer of funds in this program will be done by the IRS DMF Coordinator, Returns Processing and Accounting Division (R:R:A:DM), 1111 Constitution Avenue, N.W., Washington, D.C. 20224, (FTS 874-0580; non-FTS (202) 874-0580), and each participating agency.

Each Monday, through the OPAC system, the net collections will be transferred from the IRS clearing account 20F3875(11) to each agency's ALC number. The money is available when the transfer is complete; but the agency will not "see" it on OPAC until the next workday as the database will be updated overnight. The IRS provides the agencies on a cycle basis with a transaction file (service-weekly collection (offset/claim file).

The weekly OPAC transfer of funds should not match the amounts contained on the weekly collection file because the Collection File does not show deduction of offset fees. The chart on the following page (date columns explained below) shows each offset cycle (week) and the effective date (transfer of funds) for that cycle. Note that these are all Monday dates. If the dates happen to fall on a holiday, the transfer of funds will take place the next workday. Also included are the due dates for the weekly update files and approximate transmittal dates for the weekly unprocessable and collection files.

 Schedule date explanations:

04. Transmittal Letter--Tape files submitted to IRS must be accompanied by a letter as detailed in Exhibit A.5-1. Use the following chart to find run title and file name. The symbol ## in the file name will be replaced with your agency code (e.g., 01) as assigned by IRS.

 TYPE OF DATA                          RUN TITLE            FILE NAME

05. Tape Transmittal Form--IRS/MCC will supply each agency with preprinted forms (Form 3220) to be completed and shipped with each weekly update tape file sent to IRS. Do not ship tapes and transmittal documents separately. This transmittal form will be supplied for use with the transmitter-weekly update production file only (see Exhibit A.5-2).

06. Reporting Schedules/Transmittal Forms--Upon shipment of tapes, both production and test, an advance copy of the tape transmittal Form 3220 and the transmittal letter must be faxed to the Debtor Master File Coordinator at the Martinsburg Computing Center on (304) 267-7094. In the event this line is down, the backup number is (304) 267-3387. The original form and letter must be shipped with the test and production tapes. Agencies involved in electronic transfer of data need only fax one transmittal letter (as described in section 13) after they have transmitted.

07. Express Mail--ALL PRODUCTION TAPES SENT TO MCC MUST USE EXPRESS MAIL NEXT DAY SERVICE (USPS). Test tapes are not required to use next day service but they must be sent USPS to the appropriate P.O. Box and they must arrive timely. Any deviations regarding tape shipments must be coordinated with the DMF Coordinator at MCC on FTS 937-8345 (NON-FTS (304) 267-2911 EXT 345). Please limit these calls to Monday through Friday between the hours of 8:00 a.m. and 4:00 p.m. (Eastern Time).

08. EXHIBITS

               EXHIBIT A.5-1--TAPE TRANSMITTAL LETTER

01. IRS requires participating agencies to provide test files for compatibility testing. Tapes must be mailed to:

         Internal Revenue Service

(1) Agency files to IRS--The following time frames apply for the submission of Test files. Please note that all files must be received at MCC by the appropriate ending dates shown below for each file. Submission of files before these dates is acceptable and encouraged. A Test file must be submitted before a Production file.

 FILE                                             TESTING PERIODS

                                                           MCC

(1) The following due dates apply for submission of PRODUCTION files. Please note that all files must be received at MCC by close of business on the dates shown below. Submission of files prior to these dates is acceptable and encouraged.

 FILE                                      DUE DATE

 PRE-OFFSET SCHEDULE

05. Backup Tape Files--The IRS suggests that the agencies send a backup of the production transmitter-annual certification records file. This will minimize the chance of an agency being excluded in the current year's certification process due to the original tape being lost, damaged or unreadable. Any paperwork sent with the backup file should annotate that it is a backup file. A backup tape should only be sent for the annual certification file.

SEC. 7. INTERNAL REVENUE PROCESSING OF FILES

01. All files submitted must conform exactly to this revenue procedure. IF FILES ARE UNPROCESSABLE. THEY WILL BE RETURNED TO THE SUBMITTING AGENCY FOR CORRECTION AND REPLACEMENT. The Martinsburg Computing Center will contact the agency when an unprocessable file is returned. Files received from agencies that contain any of the following error conditions will be returned in their entirety as unprocessable:

(1) A record contains an invalid money amount field (non-numeric).

(2) The control record does not balance with the data records on count or amount.

(3) The file has an unprocessable tape header.

02. Each unprocessable record will be returned intact with an error code inserted in the record explaining the reason for its return. Part B, Sections 7, 12 and 19 contain the unprocessable record layouts and include explanations for each error code.

SEC. 8. PRE-OFFSET ADDRESS REQUEST PROCESSING

01. Before submission of annual certification records, federal agencies must obtain the latest IRS address information from an individual's tax account by submitting annual pre-offset address request records to IRS. Transmitter-annual pre-offset address request records must contain all elements as specified in Part B, Sections 5 & 6 of this revenue procedure. Agencies must contact the IRS DMF Program Coordinator. Returns Processing & Accounting Division (R:R:A:DM), Room 7013, 1111 Constitution Ave. N.W., Washington, D.C. 20224, (FTS 874-0580, NON-FTS (202) 874-0580), to schedule their participation in pre-offset processing. This processing will begin in July 1991. Pre-Offset test files must be received by July 5, 1991. See Part A, Section 6 for preoffset test and production schedules. See Exhibits A.8-1 and A.8-2.

02. Upon receipt of a file containing transmitter-annual pre-offset address request records, IRS will validate all records. Those records deemed unprocessable will be returned to the submitting agency containing all elements as specified in Part B, Section 7 of this revenue procedure. Processable records will be matched against the IMF.

03. The Martinsburg Computing Center will contact the agency when an unprocessable file will be returned. Files received from agencies that contain any of the following error conditions will be returned in their entirety as unprocessable:

(1) A record contains an invalid money amount field (non-numeric).

(2) The control record does not balance with the data records on count or amount.

(3) The file contains an unprocessable tape header.

04. Records not matching the SSA file containing all SSN's issued and all valid name controls for each SSN will be returned to the submitting agency containing all elements as specified in Part B, Sections 8 & 9.

05. Records not matching the IMF on SSN will be returned to the submitting agency containing all elements as specified in Part B, Sections 8 & 9.

06. Records matching the IMF on SSN but not on Name Control will cause extraction of the name line for the SSN as contained on the IMF. The format of the record returned from IRS is in Part B, Sections 8 & 9.

NOTE: The return by IRS of a name line does NOT imply the SSN is correct and the agency name control field is wrong. The agency MUST examine each of these records manually (i.e., not via a computer program') to determine if the name line IRS has is truly the obligor the agency is attempting to obtain an address for and subsequently certify for offset. Under NO circumstances may an agency routinely use the name or name control fields supplied by IRS.

07. Records matching the IMF on both SSN and name control will cause extraction of the street address, city, state and zip code as contained on the IMF. The format of the record returned from IRS is in Part B, Sections 8 & 9.

08. Because of the similarity in the pre-offset and annual certification process, participation in pre-offset will allow federal agencies to receive obligors' addresses and to also test and review the condition of their data before annual certification. The submitting agency can review the unprocessable and no-match records before annual certification. Records failing any validity checks at annual certification will result in the loss of a potential offset(s) for that processing year.

09. The use of any data provided by IRS for other than this program is a conflict with disclosure provisions and can result in suspension from the program. (See Part A, Section 13 Disclosure & Safeguard Requirements.)

10. Exhibits

                            Exhibit A.8-1

01. The federal agencies participating in this program must submit their annual certification records according to the specifications in Part B, Sections 10 & 11 of this revenue procedure. A test file of annual certification records must be received by November 1, 1991. The production file must be received by December 13, 1991. See Part A, Sec. 6 for test and production schedules. See Exhibits A.9-1, A.9-2.

02. Upon receipt of a file containing the annual certification records, IRS will validate all records. The unprocessable records will be returned on a separate file to the submitting agency with elements as specified in Part B, Section 12 of this revenue procedure including the error reason code. Processable records will be matched against the IMF.

03. The Martinsburg Computing Center will contact the agency when returning an unprocessable file. Files received from agencies that contain any of the following error conditions will be returned in their entirety as unprocessable.

(1) A record contains an invalid money amount field (non-numeric).

(2) The control record does not balance with the data records on count or amount.

(3) The file contains an unprocessable tape header.

04. Records not matching the SSA file, which contains all issued SSNs and all valid name controls for each SSN, will be returned to the submitting agency containing all elements as specified in Part B. Sections 13 & 14.

05. Records not matching the IMF on SSN will be returned to the submitting agency containing all elements as specified in Part B, Sections 13 & 14.

06. Records matching the IMF on SSN but not on name control will cause extraction of the name line for the SSN as contained on the IMF. The format of the record returned from IRS is in Part B, Sections 13 & 14.

07. Records finding a match on the IMF will create a refund freeze condition. The DMF will be initialized annually only from processable certification records that match the IMF. The DMF file can be updated weekly through offsets and claims from the IMF, and through decreases, deletes and agency refunds, and agency refund corrections from the submitting agencies. See Part A, Section 10. New accounts cannot be added to the file after the beginning of the calendar year and agencies can not increase obligation amounts.

08. Exhibits

                            Exhibit A.9-1

01. An agency address file will be created annually by IRS and will contain address and contact point information. This information will be included on all related IRS generated taxpayer correspondences. A central address (local code "000") for each subagency and at the option of the agency, local addresses (additional local codes), must be provided for inclusion on IRS notices. Agencies can correct or update address information throughout the processing year. The first line of the address (agency name field) must contain the name of the participating agency (e.g., U.S. Department of Education, Office of Child Support Enforcement, etc.). This field is the first address line on the taxpayer notice generated when a refund is offset and must clearly identify which agency has received the collection (See example below). No reference will be made to IRS within the agency address. At least one address with local code "000" is required for each subagency. See Exhibit A.10-1.

    Example: Agency Certification Record:

Initial address information must be submitted on tape or disk except as noted below. The production file must be submitted by December 13, 1991. See Part A, Section 6 for production schedules. All address information must conform to the specifications in Part B, Sections 15 & 16 of this revenue procedure. If an agency has 5 or less agency address records, the address information may be submitted via the Updates to agency address file procedure as described below in paragraph 10.03

03. Updates to Agency Address File via Memorandum--Revisions to the agency address file submitted at the beginning of the processing year may be submitted whenever necessary. A memorandum must be mailed (as stated in paragraph 10.4 below) to the National Office. Returns Processing & Accounting Division. Attn: Debtor Master File Coordinator. Agencies will be notified when the update is complete. NOTE: Complete address information, including telephone number, must be submitted for all updates (additions and changes).

04. Change of Address Letter--A memorandum, in the format shown in Exhibit A. 10-2 below, must be used to notify IRS of changes or additions to the agency address file.

05. Updates to Agency Address File Via Magnetic Media File--Revisions to the agency Address file may be submitted via a tape or disk file. The format is identical with the initial address (Part B. Sections 15 & 16) except that the "change indicator" field (Part B, Sec. 15, record position 8) must be appropriately set. A memorandum letter (Exhibit A. 10-2) must be submitted to the DMF Coordinator with an attached listing of the address changes on the file. For EDT agencies, the file should be transferred electronically.

06. Exhibits

                           Exhibit A.10-1

01. The IRS encourages Federal agencies to submit transmitter weekly update records. These records must be formatted according to specifications in Part B, Sections 17 & 18 of this revenue procedure. A test file must be received by November 22, 1991. Production files must be received by each THURSDAY night, beginning January 23, 1992, if they are to be timely processed that week. See Part A, Sections 5 and 6 for test and production schedules. Files received after Thursday may not be processed until the following week. See Exhibit A.11-1.

02. Upon receipt of the file containing the transmitter weekly update records, IRS will validate all records. Those deemed unprocessable will be returned to the submitting agency intact with an error code inserted into the record as specified in Part B, Section 19 of this revenue procedure. Processable records will be used to update the Debtor Master File.

03. The Martinsburg Computing Center will contact the agency when an unprocessable file is returned. Files received from agencies that contain any of the following error conditions will be returned in their entirety as unprocessable:

(1) A record contains an invalid money amount field (non-numeric).

(2) The control record does not balance with the data records on count or amount.

(3) The file contains an unprocessable tape header.

04. Weekly updates can include the following types of records:

(1). Decreases--the record used by the submitting agency to reduce a previously certified amount of obligation. IRS will reduce the current amount of obligation by the amount reflected in the decrease record. The remaining obligation will be subject to refund offset whenever credits become available.

(2). Deletes--this record is similar to a decrease record except that the application of the amount of decrease to the outstanding obligation amount, as reflected by IRS, results in $25.00 or less. Therefore, the IRS will consider the record a delete. A delete record must be used whenever a submitting agency intends to eliminate a previously certified case from the DMF. When the IRS processes a delete record, the obligor is eliminated from the refund offset program for that agency/subagency combination, for the remainder of the processing year. Agencies must not send a decrease or delete record as the result of an offset from IRS. At the time of offset the obligation amount is decreased by the offset amount. A decrease record would, in effect, decrease the obligation by twice the amount of the offset.

(3) AGENCY REFUND RECORD--this record alerts the IRS that an agency has directly repaid either a portion or the entire amount of an IRS offset. This record should be forwarded to IRS at the earliest possible date. Failure to send this record to IRS whenever this situation arises could result in IRS erroneously allowing an injured spousal claim and billing the agency for the amount. Included in the record is the amount of refund by the agency.

(4) AGENCY REFUND CORRECTION--this record corrects the amount of an agency refund record(s) previously submitted to and processed by IRS. Failure to send this record to IRS may result in IRS erroneously disallowing all or a portion of an injured spouse claim.

05. Each week the IRS will process individual income tax data including 1040 tax returns, injured spouse claims, and other tax related reversals. These actions will be reflected on the Debtor Master File as follows:

(1) Offsets occur when an individual income tax return account has a credit balance and the taxpayer has a liability on the Debtor Master File. A notice (CP-47) advising the taxpayer of the offset will be generated by IRS. Individual offset records will be sent weekly to the submitting federal agency on the service-weekly collection (offset/claim) record file as specified in Part B, Sections 20 & 21 of this revenue procedure.

(2) Individual obligations on the Debtor Master File will be reduced to zero if the obligation falls below $25.00. Therefore, agencies will not normally see an offset record for less than that amount. But if an individual has multiple obligations and there is enough money to offset to more than one, there is the potential for the subsequent offset to be less than $25.00 (e.g., only $20.00 left after the first offset). If the excess credit available is less than $10.00, no offset will occur. Therefore, agencies must be prepared to accept offsets of $10.00 or more.

(3) Injured spouse claims will be filed by a non-obligated spouse who files a joint return with a debtor who was certified for offset by a state or federal agency. The non-obligated spouse may be entitled to all or a portion of the refund, depending on his/her share of the income earned and credits claimed. If the injured spouse claim is filed after an offset occurs, the IRS will process the claim as above and refund the appropriate amount to the injured spouse. The amount allowed (refunded) will in turn be charged to the submitting agency and reflected on the service-weekly collection (offset/claim) record file as specified in Part B, Sections 20 & 21. Also other tax related reversals of offsets, such as bankruptcy cases or erroneous offsets of payments received in response to proposed tax assessments, will be on this file.

06. The weekly update records for the last offset cycle are due on December 24, 1992. This will be the last update file processed for the 1992 program. Agencies must cease sending in update files after this date.

07. Weekly Debtor Master File Processing--Each week the Debtor Master File Coordinator at MCC must be notified via fax with an advance copy of the Tape Transmittal Form 3220 and the transmittal letter on (304) 267-7094 whether a weekly update tape will or will not be shipped. In the event this line is down, the backup number is (304) 267-3387. The original form and letter must be shipped with the test and production tapes. Agencies involved in electronic transfer of data need only fax the transmittal letter (as described in Part A. Sec. 14) after they have transmitted.

08. Exhibits

                           Exhibit A.11-1

01. This section explains the procedures for contacting appropriate IRS personnel. The agency will use the two contact points listed below depending on the nature of the problem or question.

02. CONTACT POINTS

CONTACT SUBJECT

(1) Please have the following information on the problem case referral form (see exhibit A.12-1) before submitting:

(a) Agency Name

(b) Obligor Name

(c) Obligor Social security Number

(d) Date of Offset

(e) Amount of Offset

(f) Brief description of problem

(g) Spouse's SSN, if known

04. The agency will provide the DMF Project Staff with a single point of contact.

05. Exhibit

                           Exhibit A.12-1

01. Section 6103(1)(10)(B) of the Code explicitly restricts participating agencies' use of return information provided in connection with agencies' requests for reductions under section 6402(c) and (d). Agencies can use return information "only for the purpose of, and to the extent necessary in, establishing appropriate agency records, locating any person with respect to whom a reduction under subsection (c) or (d) of section 6402 is sought for purposes of collecting the debt with respect to which the reduction is sought, or in the defense of any litigation or administrative procedure ensuing from a reduction made under subsection (c) or (d) of section 6402." Agencies using the information for other than the Federal Tax Refund Offset Program can be suspended from the program.

02. Officers and employees of federal agencies who disclose return information in a manner or for a purpose not authorized by section 6103(1)(10) of the Code are subject to the criminal penalty provisions of section 7213. Federal agencies who disclose return information in a manner or for a purpose not authorized by section 6103(1)(10) are also subject to the civil damages provisions of section 7431.

03. Any unauthorized disclosure of return information must be reported to the nearest Internal Revenue Service Regional Inspector. The name, address, and telephone number of this individual may be obtained from the DMF Project Staff.

04. Return information which is obtained by an agency under section 6103(1)(10) of the Code is subject to the safeguard, record keeping, and reporting requirements of section 6103(p)(4). If the return information becomes a part of the agency case file regarding a specific taxpayer, the case file must be segregated to the maximum extent possible and safeguarded under the terms and conditions of section 6103(p)(4). Destruction of returns or return information is also governed by section 6103(p)(4).

05. An agency which receives return information pursuant to section 6103(1)(10) of the Code must submit a safeguard procedures report within 30 days of initial receipt of the return information. The report will detail the security accorded the information, the individuals who may request and have access to the information, the flow of the information once the agency has received it, as well as other information which will give a comprehensive picture of the need for, the use of, and the disposal of the return information. Publication 1075 gives additional information about the safeguard procedures report and may be obtained from the Internal Revenue Service district disclosure officer in the district in which the agency is located.

06. The agency must also submit an annual safeguard activity report giving current information on its safeguard program. The information required for this report is also detailed in Publication 1075. Pursuant to section 6103(p)(4) of the Code and the regulation thereunder, the Service has the authority to conduct its own safeguard reviews if it believes that return information is not being properly safeguarded.

07. It is the responsibility of any agency which uses a contractor to make certain that all safeguards are in place and utilized by the contractor.

SEC. 14. ELECTRONIC DATA TRANSFER (EDT) PROCEDURES

01. The purpose of this section is to explain the procedures EDT agencies must use in the electronic submission and receipt of DMF data files. EDT agencies must adhere to all requirements as defined in this revenue procedure except the requirements on creating American National Standard Institute (ANSI) labelled tapes.

02. MCC Security and Password Procedures--The Martinsburg Computing Center maintains the DMF that is the basis for the entire DMF/EDT operation. Preservation of the integrity of this database is essential to the efficient operation of the DMF. The Returns Processing DMF Section Chief or his representative will request the issuance of passwords for each National Office or agency user. Passwords (4 to 8 digits) will be generated by the MCC DMF security Administrator and issued to identified users. Agencies should forward their requests for passwords to the following address:

     DMF Project Staff

04. To ensure security of the system, the MCC Security Administrator will periodically change the user passwords, monitor the system activity and review audit trail files. The user's password is revoked immediately when they no longer need access to EDT, leave the project or report the compromise of their password. Individuals assigned passwords will not exchange or allow other users access to their password. If you have problems with your password, or need additional information, please contact the DMF Security Analyst at Martinsburg Computing Center, Security and Disclosure Branch, P.O. Box 1208, Martinsburg, WV, 25401, phone (304) 267-0215.

05. Agency Fax Transmittal Letter Guidelines

(1) Justification--The IRS requires that every transmission of data be documented with a transmittal letter. The transmittal letter will have information needed to enter the data into the MCC production system.

(2) Generation and Preparation--The MIT/EDT software generates a transmittal letter after successful transmissions. This letter should be filled out, signed by an authorized person and immediately faxed to the MCC DMF Computer Specialist at:

FAX (304) 267-7094

(4) The following instructions are for preparing the transmittal letter that follows on the next page (exhibit A.14-1).

 EXHIBIT

(5) MCC Verification of Data Receipt--MCC will return (via fax) a copy of the transmittal letter to the agency with an authorizing MCC signature verifying receipt of data (exhibit note number 6). There will be a one day turn around time for the agency to receive this verification. If the agency does not receive the transmittal letter timely, they should call the MCC DMF Computer Specialist.

06. Exhibit

                           Exhibit A.14-1

(1) File Specifications--The following files will be electronically transmitted by the EDT agencies.

 FILE       NAME

TRANSMISSION TIMES - 9 AM TO 4 PM EST

TRANSMISSION DAYS - Monday thru Friday

Note that on Friday all transmissions must be received by 12:00p.m. EST to make the cycle.

(3) Calling Process--The MIT/EDT software is setup to call SUPERTRACS software that is resident on the MCC IBM 3084 mainframe. If no connection is made on the first call attempt, redial immediately. If after the second attempt a connection is not made, wait 30 to 60 minutes and try again. Refer to the backup procedures (Section 14.11) if the third attempt fails. Once a connection is established the data will be automatically transmitted. If during transmission a problem occurs resulting in an incomplete transmission, repeat the above calling process. If a second incomplete transmission results refer to backup procedures.

08. MCC Transmission Guidelines

(1) File Specifications--All data files to be transmitted electronically will contain a Header record that the MIT software will use to identify the file. Also they will contain control records that will be used by the MIT software to generate for the agency a reproduction of the validity/controls listing report file that accompanies the particular data file.

(a) Pre-Offset Unprocessable Address Request file 480-06-PO--This file will be transmitted electronically if MCC received a pre-offset address request file (480-PO-##) for the current cycle. The MIT software will generate from the control records a reproduction of file 480-06-12 controls listing.

(b) Pre-Offset Address Request Match/No-Match file 480-10-PO--This file will be transmitted electronically if MCC received a pre-offset address request file (480-PO-##) for the current cycle. The MIT software will generate from the control records a reproduction of file 480-10-15 controls listing.

(c) Annual Unprocessable Certification file 440-03-AC--This file will be transmitted electronically if MCC received an annual certification file (440-AC-##). The MIT software will generate from the control records a reproduction of file 440-03-12 controls listing.

(d) Annual No-Match Certification file 480-10-PO--This file will be transmitted electronically if MCC received an annual certification file (440-AC-##) for the current cycle. The MIT software will generate from the control records a reproduction of file 440-08-15 controls listing.

(e) Weekly Unprocessable Update file 445-12-WK--This file will be transmitted electronically if MCC received a weekly update file (445-WK-##). The MIT software will generate from the control records a reproduction of file 445-12-13 controls listing.

(f) Weekly Collection file 445-17-WK--This file will be transmitted electronically to the agencies every cycle of the Weekly processing period. The MIT software will generate from the control records a reproduction of file 445-17-13 controls listing.

(2) Time And Day--All IRS transmissions will occur during the day hours. The IRS will electronically transmit unprocessable files (48006PO, 44003AC, 44512WK) on Mondays of the current cycle between the hours of 1pm and 3pm. All other files (48010PO, 44008AC, 44517WK) will be transmitted on Fridays of the current cycle between the hours of 1pm and 3pm. Agencies must have their designated PC set up to receive the proper file from MCC during scheduled transmission times. If more than one file is to be transmitted on the same day, phone contact will be made by a MCC representative to the agency representative to determine the order of file transmission. If MCC is experiencing hardware/software trouble, the agency will be notified of a rescheduled transmission time. The agency should notify MCC if it is experiencing hardware/software problems and cannot receive electronically transferred data during regularly scheduled and rescheduled transmission times.

(3) Calling Process--The MCC SUPERTRACS software, which resides on an IBM 3084 mainframe, will call the particular agency's designated PC that contains the FMS MIT/EDT software. The PC must be in MIT/PCTRACS receive mode for a connection to be made. MCC will attempt to make a connection for a minimum of 3 times.

(a) If a connection is not established the agency will be called by the MCC DMF contact for inquiry into the readiness of the designated PC or problems. The transmission will be rescheduled once problems are resolved.

(b) Once a connection is established the data will be electronically transferred from SUPERTRACS, in send only mode, to the PCTRACS software on the agency PC.

(c) The backup procedures for when existing problems cannot be resolved within a current cycle will be the shipping of hardcopy prints.

(4) Verification Process--Within 24 hours of data transmission MCC will fax a data transmittal letter (exhibit A.14-2) to the receiving agency. The transmittal will have a MCC signature and date. The agency must sign and date the transmittal on the agency signature line and return the letter to MCC via FAX within 48 hours of the date on the MCC signature line. MCC will contact the agency by phone or letter if they have not received the transmittal letter.

09. Exhibit

                           Exhibit A.14-2

(1) Item #1--This is a control number assigned and used by MCC personnel.

(2) Item #2--This is the MCC disk data set name for the electronically transferred file sent to agency. The OPPPRRFF is the file name (O-output, PPP-project, RR-run number, FF-file number).

(3) Item #3--This date is the creation date of the data set (item #2).

(4) Item #4--This date is also the transmission date for when transmittal letter was faxed to the agency letter.

11. BACKUP PROCEDURES--These procedures are to be followed after three failed transmission attempts from the agency to the MCC IBM 3084 mainframe.

          (1) Contact MCC DMF Coordinator

PART B. RECORD SPECIFICATIONS

SECTION 1. INTRODUCTION

01. The record specifications define the required format and contents of the records to be included in the file. These specifications must be adhered to. Deviations from these requirements must be pre-approved by IRS. These specifications are for the participating agency that transmits files to MCC and are not intended to mandate subagency-to-agency specifications.

02. IRS will accept files from and return files to one data processing center or office for each agency.

03. Agencies utilizing EDT are not subject to the normal tape reporting requirements. Record format and LRECL adherence are mandatory.

SEC. 2. FILE SPECIFICATIONS

01. All records will be fixed length and conform to the given record specifications provided herein.

02. All records except the header and trailer Labels must be blocked.

03. All files must be in 9 channel ASCII (American National Standard Code For Information Interchange) with odd parity.

04. All files must contain ANSI header and trailer Labels. Specific header label file information is specified in Part B, Sec. 22 & 23.

05. Tape Density (BPI) must be as follows:

(1) 1600 or 6250 for tapes submitted to IRS (preferably 6250)

(2) 1600 for all tapes created by IRS for the Agency

06. All tape files must have the following characteristics:

(1) Type of tape--1/2 inch Mylar base, oxide coated, and

(2) Interblock Gap--3/4 inch.

07. The logical record size (LRECL) and blocksize (BLKSIZE) for transmitter files are as follows:

 FILE                                             LRECL       BLKSIZE

 FILE                                             LRECL       BLKSIZE

    IRS

SEC. 3. LOGICAL SEQUENCE OF FILES

01. The data on transmitter files may be in any logical sequence as long as the data control record is the very last record of each file.

02. Service Files

(1) Service-Annual Pre-Offset Unprocessable file will be in the same sequence as received on the Transmitter-Annual Pre-Offset Address Request file. NOTE: there will NOT be a Data Control record on this file.

(2) Service-Annual Pre-Offset Address Request file will be in SSN order.

(3) Service-Annual Unprocessable file will be in the same sequence as received on the Transmitter-Annual Certification file. NOTE: there will NOT be a Data Control record on this file.

(4) Service-Annual No-Match/Info file will be in SSN order.

(5) Service-Weekly Unprocessable file will be in the same sequence as received on the Transmitter-Weekly Update file. NOTE: there will NOT be a Data Control record on this file.

(6) Service-Weekly Collection (Offset/Claim) file will be in SSN within subagency order. NOTE: There will be a data control record (CNTL) following the data for each subagency. In addition, there will be a Cumulative Control record (CUM) present as the very last record on the file.

SEC. 4. RESERVED

SEC. 5. TRANSMITTER-ANNUAL PRE-OFFSET ADDRESS REQUEST RECORD

The annual pre-offset address request record contains information on potential obligors. These records are formatted identically to the annual certification record and are used by the agency as a means for obtaining the latest address information and checking status of data. The address will be appended to the end of the incoming record. All records will be returned to the participating agency. ONLY ONE RECORD ALLOWED PER SSN WITH THE SAME AGENCY CODE AND SUBAGENCY CODE. RECORDS WITH THE SAME SSN, AGENCY CODE, SUBAGENCY CODE WILL CAUSE THE FIRST RECORD TO BE ACCEPTED AND THE SUBSEQUENT RECORDS TO BE REJECTED AS DUPLICATES.

   RECORD NAME: TRANSMITTER-ANNUAL PRE-OFFSET ADDRESS REQUEST RECORD

Identifies the cumulative counts and amounts for all records on the transmitter annual pre-offset file. This record must appear as the last data record on the file which is submitted to IRS. If the record count or obligation Amount does not balance when the file is processed, the complete file will be rejected, causing that agency not to be able to participate in pre-offset.

       RECORD NAME: TRANSMITTER-ANNUAL PRE-OFFSET CONTROL RECORD

Identifies records which were found to be unprocessable during validity processing. All fields remain the same as input on the transmitter annual pre-offset address request record except in positions 85 & 86 where IRS inserts an error code.

      RECORD NAME: SERVICE-ANNUAL PRE-OFFSET UNPROCESSABLE RECORD

This service annual pre-offset address request record contains address information for all obligor accounts that have been matched to the IMF. The error code will be set and the address or nameline may be appended to the end of the incoming record. These records will be returned to the participating agency annually.

     RECORD NAME: SERVICE-ANNUAL PRE-OFFSET ADDRESS REQUEST RECORD

Identifies the cumulative counts of all matched and unmatched records on IRS annual pre-offset address request file. This record will appear as the last data record on the file that IRS will return to the participating agency.

         RECORD NAME: SERVICE-ANNUAL PRE-OFFSET CONTROL RECORD

Records submitted to initialize the Debtor Master File identifying the obligor and amount of obligation. These records are submitted annually by the agency for each obligor having a delinquent debt to that agency. ONLY ONE RECORD ALLOWED PER SSN WITH THE SAME AGENCY CODE AND SUBAGENCY CODE. RECORDS WITH THE SAME SSN, AGENCY CODE SUBAGENCY CODE WILL CAUSE THE FIRST RECORD TO BE ACCEPTED AND THE LATER RECORDS TO BE REJECTED AS DUPLICATES.

         RECORD NAME: TRANSMITTER-ANNUAL CERTIFICATION RECORD

Identifies the cumulative counts and amounts for all records on the transmitter annual certification file. This record must appear as the last data record on the file which is submitted to IRS. If the record Count or Obligation Amount does not balance when the file is processed, the complete file will be rejected, potentially resulting in that agency not being able to participate for that year.

     RECORD NAME: TRANSMITTER-ANNUAL CERTIFICATION CONTROL RECORD

Identifies records which were found to be unprocessable during validity processing. All fields remain the same as input on the transmitter annual certification record except in positions 85 & 86 where IRS inserts an error code.

    RECORD NAME: SERVICE-ANNUAL UNPROCESSABLE CERTIFICATION RECORD

Identifies transmitter annual certification records which do not match the Individual Master File or do match but contain information that may be useful to the agency. The explanation for this can be found in the error code Field of the record. A fixed field is added to the end of the input record and the IRS Nameline is inserted on all no match code 02 records. All other fields remain the same as input on the transmitter annual certification record.

           RECORD NAME: SERVICE-ANNUAL NO MATCH/INFO RECORD

Identifies the cumulative counts and amounts for all records on the Service annual No Match/Info file. This record will appear as the last data record on the file that IRS will return to the submitting agency.

       RECORD NAME: SERVICE-ANNUAL NO MATCH/INFO CONTROL RECORD

The agency address record contains address information which will be included on Service notices to taxpayers. Agencies may submit a central address to refer all obligor inquiries or may submit local addresses.

                  RECORD NAME: AGENCY ADDRESS RECORD

Identifies the cumulative count of agency address records on the agency address file. This record must appear as the last data record on the file.

            RECORD NAME: AGENCY ADDRESS FILE CONTROL RECORD

These records will be submitted on a weekly basis by the transmitter. Each record must contain an SSN, agency code, subagency code, and name control for an obligor that was originally established on the DMF. The record will contain an indicator denoting either a decrease to the original obligation amount, an offset(s) previously turned over to the participating agency has been refunded (fully or partially) directly to the obligor, or an adjustment (decrease) to a previously submitted refund record.

             RECORD NAME: TRANSMITTER-WEEKLY UPDATE RECORD

Identifies the cumulative counts and amounts for all records on the transmitter Weekly Update file. This record must appear as the last data record on the file which is submitted to IRS. If the counts and amounts do not balance when the file is validated, the complete file is rejected and update functions are not performed.

         RECORD NAME: TRANSMITTER-WEEKLY UPDATE CONTROL RECORD

Identifies transmitter weekly update records which are deemed unprocessable by IRS. The explanation for this can be found in the No Match Code field of the record. All fields (except No Match code field) will be the same as input on transmitter weekly update record.

        RECORD NAME: SERVICE-WEEKLY UNPROCESSABLE UPDATE RECORD

Identifies DMF accounts which had in the current week either a federal income tax refund offset or a spousal claim and will contain the amount of that action. If the action is an offset, the latest address information will be inserted at the end of the record. If the action is a claim the record will be blank filled.

     RECORD NAME: SERVICE-WEEKLY COLLECTION (OFFSET/CLAIM) RECORD

Identifies the cumulative counts and amounts for all records on the Service-weekly collection (offset/claim) file. This record will appear as the last data record for each subagency on the file that IRS will return to the submitting agency. A final "CUM" control record containing counts and amounts of all records for the agency will appear as the very last record of the file.

                RECORD NAME: SERVICE-WEEKLY COLLECTION

/**/ Note: When the Net collections field is significant, only one of these fields will also be significant. In addition, the significant field will contain the same value as the Net collections field. ALL OFFSET RELATED AMOUNT FIELDS INCLUDE THE FULL AMOUNT OF THE OFFSET, INCLUDING THE OFFSET FEE WHICH WILL BE SUBTRACTED OUT AT FUNDS TRANSFER TIME.

SEC. 22. TRANSMITTER HEADER RECORDS

01. The transmitter header records must be in ANSI standard label format.

02. The file identifier field (data set name--DSNAME) is in the HDR1 data set label. It is located in positions 5 through 21 and must be left justified and blank filled. The file identifier for the appropriate agency files must be define as shown in table below.

 RECORD TYPE                  FILE NAME /*/ /+/   FILE IDENTIFIER /+/

01. The Service header records will be in ANSI standard label format.

02. The file identifier in the HDR1 data set label for the appropriate files will be as follows:

 Record Type                  File Name           File Identifier /+/

/+/ The ## is replaced with the appropriate agency code assigned by IRS. e.g., Pre-Offset Address Request File Name for agency 02 will be 480-PO-02 and the File Identifier is I4806APO.AG02.IRS.

SEC. 24. SERVICE-ANNUAL AND PRE-OFFSET UNPROCESSABLE EDT HEADER RECORD

This record will identify the file to the FMS MIT software resident on the agency PC for use in processing electronically transferred data sets (EDT). This record will only appear on EDT agency files.

              RECORD NAME: SERVICE-ANNUAL AND PRE-OFFSET

This record will be used by the FMS MIT software resident on the agency PC for use in processing electronically transferred data sets (EDT). This record will only appear on EDT agency files.

              RECORD NAME: SERVICE-ANNUAL AND PRE-OFFSET

This record will identify the file to the FMS MIT software resident on the agency PC for use in processing electronically transferred data sets (EDT). This record will only appear on EDT agency files.

                RECORD NAME: SERVICE-PRE-OFFSET ADDRESS

This record will identify the file to the FMS MIT software resident on the agency PC for use in processing electronically transferred data sets (EDT). This record will only appear on EDT agency files.

      RECORD NAME: SERVICE-ANNUAL NO-MATCH FILE EDT HEADER RECORD

Inquires in regard to this revenue procedure should be directed to the contacts listed below:

     DMF Section

Rev. Proc. 91-37, 1991-2 C.B. 639, is superseded by this revenue procedure.

SEC. 30. EFFECTIVE DATE

This revenue procedure is effective June 17, 1991, the first due date for 1991 pre-offset processing which is the first process for the 1992 Tax Refund Offset Program.

SEC. 31. DRAFTING INFORMATION

The principal author of this revenue procedure is Crystal Lane of the Information Systems Management (Tax Systems) Division. IMF Returns Systems Branch ISM:T:1. For further information regarding this revenue procedure contact Crystal Lane on (202) 566-9228.