SERVICE ANNOUNCES PROCEDURES FOR MAGNETIC REPORTING IN CONNECTION WITH REFUND OFFSET PROGRAM.

Rev. Proc. 89-25

                              CONTENTS

SECTION 1. PURPOSE

.01 The purpose of this Revenue Procedure is to provide the requirements and conditions for filing pre-offset address request, annual certification, weekly update and agency address records on magnetic tape for federal debts which are eligible for the Federal Income Tax Refund Offset Program. This Revenue Procedure is issued under the authority contained in Section 7805 of the Internal Revenue Code of 1954 (68A STAT. 1153; 26 U.S.C. 7805) and in Section 3720A of Subchapter 37 of Title 31 United States Code (98 STAT. 1153; 31 U.S.C. 3720A). See Exhibit A.1-1 for overview of project. The authorizations for the Refund Offset Program are as follows:

1. Deficit Reduction Act of 1984 - PL 98 - 369; Section 2653

2. Omnibus Budget Reconciliation Act of 1987 - PL 97-35; Section 2331

3. Child Support Enforcement Amendments of 1984, PL 98-378; Section 21

4. 26 U.S.C. 6402 (c)(d)

5. The Family Support Act of 1988, H.R. 1720

.02 Included in this Revenue Procedure are requirements for:

(a) 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.

(b) submitting Annual Certification records for inclusion on the Debtor Master File.

(c) submitting Federal Agency's addresses and contacts on magnetic tape for inclusion on IRS offset notices to taxpayers.

(d) submitting Weekly Updates to 1) delete or decrease a previously certified debt or 2) indicate that the federal agency has refunded a previous federal income tax refund offset to a taxpayer.

.03 The Internal Revenue Service (IRS), upon receipt of Annual Certification records, will mark matching individual taxpayer accounts to prohibit refunding of overpayments to the taxpayer. When refundable credits (usually resultant from the filing of a current year tax return) are processed, an offset record is generated to the agency for the amount of obligation or the amount of the refund, whichever is less. This offset record will also reflect current taxpayer identifying information valid for the offset tax year, i.e., SSN, name(s), and current address. Claims may be filed by an "injured spouse" to recover their portion of any joint overpayment which is not subject to offset by submitting Form 1040X and Form 8379.

.04 See Section 12 Part A for Information regarding Disclosure and Safeguards Requirements. .05 Specifications for the following agency submitted records are contained in this Revenue Procedure:

(a) Transmitter-Annual Pre-Offset Address Request Record

(b) Transmitter-Annual Pre-Offset Data Control Record

(c) Transmitter-Annual Certification Record

(d) Transmitter-Annual Certification Data Control Record

(e) Transmitter-Agency Address Record

(f) Transmitter-Agency Address Data Control Record

(g) Transmitter-Weekly Update Record

(h) Transmitter-Weekly Update Data Control Record

.06 Specifications for the following IRS records returned to the Federal Agency are contained in this Revenue Procedure:

(a) Service-Annual Pre-Offset Unprocessable Record

(b) Service-Annual Pre-Offset Address Request Record

(c) Service-Annual Pre-Offset Data Control Record

(d) Service-Annual Unprocessable Certification Record

(e) Service-Annual No Match Record

(f) Service-Annual No Match Data Control Record

(g) Service-Weekly Unprocessable Update Record

(h) Service-Weekly Collection (Offset/Claim) Record

(i) Service-Weekly Collection (Offset/Claim) Data Control Record

.07 Specifications for Header records are contained in Section 22 for Transmitter files and Section 23 for IRS files.

                            EXHIBIT A.1-1

.01. A new post office box has been assigned just for DMF. (P.O. Box 909 Kearneysville, WV, 25430)

.02. The addition of a milestone activity chart. (Part A. Sect. 4)

.03. The addition of a deceased indicator. (Part A. Sect. 3. Sect. 7.06), (Part B. Sect. 8.13)

.04. The addition of a Judgement Debt Indicator, (Part A. Sect. 3), (Part B. Sect. 5,10)

.05. The Delinquent Date definition has been reworded. (Part A. Sect. 3)

.06. The Agency Location Code definition is reworded. (Part A. Sect. 3)

.07. The Spousal Claim definition is reworded (Part A. Sect. 3) The explanation concerning injured spouse claims has been reworded. (Part A. Sect. 10.05)

.08. The symbols for the DMF Project Staff have been changed to TR:R:A.

.09. The current CP 47 is included (Overpaid Tax applied to Past-Due Obligation). Exhibit A.10-4. Offset Notice (Part A. Sect. 10)

.10. There is a requirement now to write in the replacement tape number on the transmittal letter. Exhibit A.4-1. Transmittal Letter. (Part A. Sect. 4.08)

.11. The Reporting schedule has been updated to reflect the 1989 shipping dates. (Part A. Sect. 4.01)

.12. Field Name in Service-Weekly Collection Data Control Record changed from "Transfer Amount" to "Excess Offset Amount".

.13. New refund adjustment record processing, TC 131 type 2 record. (Part B. Sect. 17), (Part B. Sect. 18), (Part B. Sect. 19)

.14. Authorizations for the Refund Offset Program. (Part A. Sect. 1)

.15. Problem Case Referral Form added. Exhibit A.11-1. (Part A. Sect. 11.03))

.16. All references to NCC and National Computer Center have been changed to MCC and Martinsburg Computing Center.

.17. The Spousal Definition was changed. (Part A. Sect. 3)

.18. Added line to backup file explanation, but not concerning form 3220. (Part A. Sect. 5.05)

.19 Various editorial changes.

SEC. 3. DEFINITIONS

 ELEMENT                 DESCRIPTION

.01 MILESTONE ACTIVITY CHART

 ACTIVITY                           TARGET/COMPLETION DATES

Each Monday, through the OPAC system, the net collections are transferred from the IRS Clearing Account 20F3875.11 to each agency's ALC number. The money is available as soon as the transfer is effected; however, the agency will not "see" it on OPAC until the next workday as the data base is updated overnight. The IRS provides the agencies with a transaction file containing collection (offset/claim) information in the form of magnetic tapes (Service-Weekly Collection (Offset/Claim) File) on a cycle basis. The weekly OPAC transfer of funds should match the amounts contained on the Weekly Collection Tape. The following chart 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 tapes and approximate shipping dates for the Weekly Unprocessable and Collection files.

 SCHEDULE

.04 TRANSMITTAL LETTER - Tapes submitted to IRS must be accompanied by a letter as detailed in Exhibit A.4-1 in Part A, Section 4.08 below. Use the following chart to determine run title and file name. The symbol ## in the file name is replaced with your agency code (i.e., 01) as assigned by IRS.

 TYPE OF DATA                 RUN TITLE                    FILE NAME

.05 TAPE TRANSMITTAL FORM - IRS/MCC will supply each agency with pre-printed forms (Form 3220) to be completed and shipped along with each Weekly Update tape file sent to IRS. Do not ship tapes and transmittal documents separately. This form is in addition to the Transmittal Letter outlined in Part A, Section 4.04 above. This transmittal form will be supplied for use with the TRANSMITTER - WEEKLY UPDATE PRODUCTION file only. See Exhibit A.4-2 in Part A, Sec. 4.08 below.

.06 Upon Shipment of Production tapes, the Debtor Master File Coordinator at the IRS Martinsburg Computing Center must be notified 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 AM and 4:00 PM (Eastern Time).

.07 EXPRESS MAIL - ALL TAPES SENT TO MCC MUST USE EXPRESS MAIL NEXT DAY SERVICE. (USPS). Any deviations regarding tape shipment must be coordinated with the DMF COORDINATOR AT THE 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 AM and 4:00 PM (Eastern Time).

.08 EXHIBITS

                 EXHIBIT A.4-1 - TRANSMITTAL LETTER

Item A: Insert a Transmittal Number here. This number can be used as reference when calling MCC to verify receipt of tapes.

Item B: Insert original reel number. (Upon receipt, MCC will assign a number of its own under Serial No.

Item C: Insert number of records on the file. This should include data records only.

Item D: Insert number of data blocks on the file.

Item E: Insert name of Person contacted at MCC regarding shipment of this tape.

Item F: Insert date of contact in item E.

Item G: Insert time of contact in item E.

Additional notes for Form 3220

The ## symbols will be the actual agency code assigned by the IRS.

A unique number for each agency will be assigned and placed in box 17.

/*/ MCC may add a 2 or 3 digit literal to the file I.D. for each agency

SEC. 5. SUBMISSION DATES FOR MAGNETIC TAPES

.01 IRS requires participating agencies to provide test tapes for the purpose of compatibility testing as soon as possible after July 1. Tapes must be mailed to:

     Internal Revenue Service

               TAPE FILE                           FINAL Due Dates for

.03 Pre-Offset Address Request processing will begin in July and continue on an "as needed" basis thru August 25, 1988. The agency must schedule their participation with the DMF Project Staff. A minimum of one weeks lead time is required. Tape files are due at MCC by Thursday evening prior to the scheduled cycle. The following is the Pre-Offset Schedule:

 SCHEDULE

.05 BACKUP TAPE FILES - It is suggested that a backup of the Production Transmitter-Annual Certification Records file be sent to IRS. This will minimize the chance of an agency not being included in the year's certification in the event the original tape is lost, damaged or unreadable. Any paperwork accompanying the backup file should be annotated that it is a backup file.

NOTE: A backup tape should be sent for the Annual Certification file only.

SEC. 6. INTERNAL REVENUE PROCESSING OF MAGNETIC TAPES

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

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

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

(c) An unprocessable tape header is encountered.

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

SEC. 7. PRE-OFFSET ADDRESS REQUEST PROCESSING

.01 Prior to 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, Sec. 5 & 6 of this Revenue Procedure. Agencies must contact the IRS DMF Program Coordinator, Returns Processing & Accounting Division (TR:R:A), 1111 Constitution Ave. NW, Washington, D.C. 20224, (FTS 343-0145, NON-FTS (202) 343-0145,), to schedule their participation in Pre-Offset Processing. This processing will begin in July. Pre-Offset TEST tapes must be received no later than August 11, 1988. Pre-Offset PRODUCTION tapes must be received no later than August 25, 1988, to be included in the last scheduled processing cycle. See exhibits A.7-1 and A.7-2.

The purpose of this processing is to obtain address information for use in making a reasonable attempt to notify the obligor of the agencies intent to refer their case to IRS. A reasonable attempt to notify the debtor means that the Agency may use the address they maintain for the debtor if they believe that to be the most current. However, if the notice comes back undeliverable, then the agency must attempt to notify the debtor at the mailing address obtained from the Service. The agency must use the address received from the Service pursuant to section 6103(m)(2), (m)(4) or (m)(5) of the Code as appropriate within a period of one year preceding the attempt to notify the debtor.

NOTE: REGARDLESS OF WHICH ADDRESS THE AGENCY PLANS TO USE, PARTICIPATION IN PRE-OFFSET ADDRESS PROCESSING IS MANDATORY.

.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, Sec. 7 of this Revenue Procedure. Processable records will be matched against the Individual Master File (IMF).

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

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

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

(c) An unprocessable tape header is encountered.

.04 Records not matching the IMF on SSN and Name Control will be returned to the submitting agency containing all elements as specified in Part B, Sec. 8 & 9.

.05 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 specified in Part B, Sec. 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 and/or name control supplied by IRS.

.06 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 specified in Part B, Sec. 8 & 9. In addition, an indicator will be set if the IMF indicates the obligor is deceased.

                            EXHIBIT A.7-1

.08 Agencies are reminded that using 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 12 Disclosure & Safeguard Requirements.)

SEC. 8. ANNUAL DEBTOR MASTER FILE PROCESSING

.01 The federal agencies participating in this program must submit their Annual Certification records in accordance with the specifications in Part B, Sec. 10 & 11 of this Revenue Procedure. A TEST tape of Annual Certification records must be received no later than November 15, 1988. The PRODUCTION file must be received no later than January 5, 1989. See exhibits A.8-1, A.8-2.

.02 Upon receipt of a tape containing the Annual Certification records, IRS will validate all records. Those deemed unprocessable will be returned on a separate tape file to the submitting agency containing all elements as specified in Part B, Sec. 12 of this Revenue Procedure including the error reason code. Processable records will be matched against the Individual Master File (IMF).

.03 Tapes received from agencies that contain any of the following error conditions will be returned in their entirety as unprocessable. The Martinsburg Computing Center will contact the Agency when an unprocessable tape is being returned.

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

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

(c) An unprocessable tape header is encountered.

.04 Those records that do not find a match on the Individual Master File (IMF) will be returned on a separate tape file to the submitting agency containing all elements as specified in Part B, Sec. 13 & 14 of this Revenue Procedure.

.05 Records finding a match on the IMF will create a refund freeze condition. The Debtor Master File (DMF) is initialized annually only from processable certification records that match the IMF. The DMF file can be updated on a weekly basis through offsets and claims from the IMF, and through decreases, deletes and agency refund repayments from the submitting agencies. New accounts cannot be added to the file after the beginning of the calendar year, nor can obligation amounts be increased.

.06 Records finding a match and with an indication on the IMF that the obligor is deceased will cause an error code 05 information record to be returned on the No-Match File.

                            EXHIBIT A.8-1

(a) Office of Child Support Enforcement (AFDC)-Aid to Families with Dependent Children claims and state foster care and adoption assistance program claims.

(b) All other participating agencies based on the earliest delinquent date. In the event the delinquency date is the same, the account with the larger obligation will be subject to offset first.

(c) Office of Child Support Enforcement-(non-AFDC) NON-Aid to Families with Dependent Children claims.

SEC. 9. AGENCY ADDRESS FILE

.01 An Agency Address File will be created annually by IRS and will contain address and contact point information which 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 will have the ability to correct/update address information throughout the processing year. The first line of the address (Agency Name field) must contain the name of the participating agency (i.e., U.S. Department of Education, Office of Child Support Enforcement, etc.). This field will display as the first address line on the notice the taxpayer receives at the time his 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.9-1.

              Example: Agency Certification Record:

It is required by IRS that the Agency supply at least one toll-free or collect telephone number. Space is provided for three phone numbers. More than one toll-free or collect number may be used.

NOTE: The telephone number(s) do not have to be different for each local code. The Agency may assign one toll-free number for all subagencies.

Initial address information must be submitted on magnetic tape except as noted below. A TEST tape MUST be submitted no later than December 6, 1988. The PRODUCTION tape must be submitted no later than January 9, 1989. All magnetic media address information must conform to the specifications in Part B, Sec. 15 & 16 of this Revenue Procedure.

NOTE: If an Agency has 5 or less Address records, the address information may be submitted via the Updates to Agency Address File procedure as described in 9.02 below.

.02 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 to the National Office, Returns Processing & Accounting Division, Attn: Debtor Master File Coordinator, in the format outlined in 9.03 below. Agencies will be notified when the update(s) have been completed. NOTE: Complete address information, including telephone number, must be submitted for all updates (additions and changes).

.03 CHANGE OF ADDRESS LETTER - A memorandum, in the format shown in Exhibit A.9-2 below, must be used to notify IRS of changes or additions to the Agency Address File.

.04 Updates to Agency Address File Via Tape File - Revisions to the Agency Address file may be submitted via a tape file. The format is identical to the initial address (Part B, sections 15 & 16) except that the "update indicator" must be appropriately set. A memorandum letter (Exhibit A.9-2) must be submitted to the DMF Coordinator with an attached listing of the address changes on the tape file.

                            EXHIBIT A.9-1

.01 Federal Agencies are encouraged to submit Transmitter Weekly Update Records. These records must be in accordance with specifications in Part B, Sections 17 & 18 of this Revenue Procedure. A TEST file must be received no later than December 13, 1988. PRODUCTION files must be received no later than each THURSDAY night, beginning January 26, 1989, if they are to be timely processed that week. Tapes received later than Thursday may not be processed until the following week. See exhibit A.10-1.

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

(a) 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.

(b) DELETES - this record is basically the same as a DECREASE record except that when the amount of decrease is applied to the outstanding obligation amount, as reflected by IRS, the result is $25.00 or less. In this case, IRS will consider the record as a DELETE. A DELETE record must be used whenever a submitting agency intends to eliminate a previously certified case from the DMF.

It should be noted that whenever IRS processes a DELETE record, the obligor will no longer be subjected to the refund offset program for that agency/subagency combination, for the remainder of the processing year.

(c) AGENCY REFUND RECORD - this record is used to alert 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. The amount of refund by the agency is included in the record.

(d) AGENCY REFUND CORRECTION - this record is used to correct (DECREASE) the amount of an incorrect 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.

.03 Upon receipt of the tape 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, Sec. 19 of this Revenue Procedure. Processable records will be used to update the Debtor Master File.

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

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

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

(c) An unprocessable tape header is encountered.

.05 Each week 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:

(a) Offsets are made on individual income tax return refunds where 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 (see Exhibit A.10-4). 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, Sec. 20 & 21 of this Revenue Procedure.

                            EXHIBIT A.10-1

(c) If the 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, Sec. 20 & 21. Other tax related reversals of offsets, such as bankruptcy cases or erroneous offsets of payments received in response to proposed tax assessments, will also be included on this file.

.06 The Weekly Update Records for the last offset cycle are due on December 21, 1989. This will be the last update file processed for the 1989 program.

.07 Each week the Debtor Master File Coordinator at MCC must be notified on FTS 937-8347 (NON-FTS (304)-267-2911 EXT 347) whether or not a weekly update tape has/will be shipped.

SEC. 11 PROBLEM RESOLUTION CONTACTS

.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

A. Please have the following information on the problem case referral form before submitting. (See Exhibit A.11-1)

1. Agency Name

2. Obligor Name

3. Obligor Social Security Number

4. Date of Offset

5. Amount of Offset

6. Brief description of problem.

7. Spouses SSN if known.

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

                           EXHIBIT A.11-1

SEC. 12 DISCLOSURE & SAFEGUARD REQUIREMENTS

.01 Sections 6103(1)(10)(b) and 6103(1)(11)(B) of the Internal Revenue Code explicitly restrict participating agencies' use of return information provided in connection with agencies' requests for reductions under IRC 6402(c) and (d). Agencies are permitted to use return information "only for the purpose of, and to the extent necessary in, establishing appropriate agency records or in the defense of any litigation or administrative procedure ensuing from a reduction made under Section 6402(c) or (d)." 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 sections 6103(1)(10) or 6103(1)(11) 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 sections 6103(1)(10) or 6103(1)(11) 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 sections 6103(1)(10) or 6103(1)(11) of the Code is subject to the safeguard, recordkeeping, 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 sections 6103(1)(10) or 6103(1)(11) 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.

PART B. MAGNETIC TAPE SPECIFICATIONS

SECTION 1. INTRODUCTION

.01 The magnetic tape 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 preapproved by IRS. These specifications are for the participating agency that sends the magnetic tapes to MCC and is not intended to mandate subagency to agency specifications.

.02 IRS will accept tapes from and return tapes to one Data Processing Center for each Agency.

SEC. 2. TAPE AND 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 (American National Standard Institute) 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:

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

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

.06 All tape files must have the following characteristics:

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

(b) 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

(a) 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.

(b) SERVICE-ANNUAL PRE-OFFSET ADDRESS REQUEST FILE will be in Social Security Number (SSN) order.

(c) 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.

(d) SERVICE-ANNUAL NO MATCH FILE will be in Social Security Number (SSN) order.

(e) 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.

(f) SERVICE-WEEKLY COLLECTION (OFFSET/CLAIM) FILE will be in Social Security Number (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 idemnically 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

Identifies the cumulative counts and amounts for all records on the Transmitter Annual Pre-Offset tape file. This record must appear as the last data record on the tape file which is submitted to IRS. If the Record Count or Obligation Amount does not balance when the tape is processed, the complete tape 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

Identifies the cumulative counts of all matched and unmatched records on IRS Annual Pre-Offset Address Request tape file. This record will appear as the last data record on the tape 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 tape file. This record must appear as the last data record on the tape file which is submitted to IRS. If the Record Count or Obligation Amount does not balance when the tape is processed, the complete tape file will be rejected, potentially resulting in that agency not being able to participate for that year.

             RECORD NAME: TRANSMITTER-ANNUAL CERTIFICATION

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

Identifies Transmitter Annual Certification Records which do not match the Individual Master File. 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 RECORD

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

          RECORD NAME: SERVICE-ANNUAL NO MATCH 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 tape file. This record must appear as the last data record on the tape 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 tape file. This record must appear as the last data record on the tape file which is submitted to IRS. If the counts and amounts do not balance when the tape 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

Identifies the cumulative counts and amounts for all records on the Service-Weekly Collection (Offset/Claim) tape file. This record will appear as the last data record for each subagency on the tape file that IRS will return to the submitting agency. Also present, as the last record on the file, will be a "CUM" control record containing counts and amounts of all records for the agency.

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

/**/ 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.

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 thru 21 and must be left justified and blank filled. The File Identifier for the appropriate Agency files must be as follows:

 RECORD TYPE                  FILE NAME /*/ /@/   FILE IDENTIFIER /@/

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

.02 The file identifier (data set name - DSNAME) in the HDR1 data set label for the appropriate files will be as follows:

 Record Type                  File Name /@/       File Identifier /@/