IRS EXTERNAL LEADS PROGRAM: FACT SHEET ON

IRS EXTERNAL LEADS PROGRAM:
FACT SHEET ON SUBMITTING LEADS
Introduction
The IRS Return Integrity and Correspondence Services
Definition of an “External Lead”
(RICS) External Leads Program is responsible for receiving
• External Leads involve questionable
and processing leads and Automated Clearing House
Federal Tax Refunds from financial
(ACH) credits returned by financial institutions because
institutions and various other sources
the funds were considered to be questionable. External
Leads works with IRS Submission Processing to receive
• Leads involve Treasury checks, direct
questionable leads, screen and validate the associated lead
deposits/ACH, refund anticipation loans/
and account information, and subsequently request the
checks and pre-paid debit cards
recovery of refunds to reconcile accounts. The Program
receives leads from over 125 financial institutions, state
and local agencies, and internal business units throughout
the IRS. Federal tax refunds returned to the IRS associated with leads can be submitted to the IRS electronically
via the Financial Management Service’s (FMS) ACH Credit Gateway. The FMS Credit Gateway uses existing ACH
deposit methods to allocate funds to a specific account locator number associated with External Leads. Any
source able to submit ACH Fedwire deposits should be able to use the Credit Gateway. Returned refunds may also
be submitted via paper check if necessary. Correct and accurate lead submission ensures the IRS recovers funds
efficiently
Steps for Submitting Leads to the IRS
High-Level Process
1.
Financial Institutions: Submit standard External Lead Spreadsheet via secured email to the External
Leads group mailbox: The spreadsheet provides critical personal identifiable information (PII) which
helps the IRS identify the source of funds and ensure accurate processing of any funds returned (see Table
on page 2 for requested lead information).
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Email address: [email protected] and copy [email protected] (Program POC)
Email Subject Line: Description must include financial institution name, date, and “External Leads”
(Note: If you are unable to use the Credit Gateway, or require additional information, please add a
note for paper check)
Email Body:
¶¶ Reason for questionable lead(s)/return
¶¶ Financial institution’s point-of contact: name, title, phone/fax number, email address and
financial institution/company submitting lead
¶¶ Physical street address of the financial institution (no P.O. Boxes)
¶¶ If applicable, request indemnification letter (Note: If the indemnification letter should be sent
to a different point of contact at your financial institution, please identify the appropriate
department and point of contact in the lead email)
¶¶ NOTE: Please be sure to include the RTN of the institution AND the physical address
Attachments: Attach completed, standardized External Leads spreadsheet to the email.
Secure Format: Email should have a secure password. Please provide the password to the
spreadsheet attachment in a separate email. The same password may be used throughout the filing
season.
IRS External Leads Program
External Leads Standardized Spreadsheet Fields
Source of External Lead
Reason for Referral
Name of Account Holder
Treasury Check Number
Date of Submission
Address: City, State and Zip
of Account Holder
Refund RTN
Date of Original Deposit
Tax Period/Year
Name on Refund Check
if Different From Account
Owner
Account Number of
Refund
Amount of Original
Deposit (Federal tax
refund)
Amount of Refund
Available for Recovery
SSN of Account Holder
Debit Card Number (if
applicable)
2.
IRS: Conduct Lead Research (Screening and Verification)
Upon receipt of a lead, the IRS will provide an acknowledgement email and a Lead Number for future
reference. Based on the information received, External Leads will complete the necessary research on
the individual accounts.
3.
IRS: Request Refund Repayment Amount from Financial Institution
The IRS will contact the financial institution within approximately 15 business days and inform the
financial institution of the total amount of funds that should be returned to the IRS. The IRS will provide
financial institutions with an indemnification letter prior to transmittal of funds.
4.
Financial Institution: Return Refunds to the IRS
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Electronic (preferred method): Upon notification from the IRS, funds should be submitted via
ACH Credit Gateway. Credit Gateway is a deposit program that FMS (a branch of the Treasury
Department) uses for the receipt of ACH transactions. Upon completion of lead review, the IRS
will provide the appropriate account locator number (ALC) for the Credit Gateway transaction, and
Gateway Account number (per IRS site). The financial institution should return the funds via the
Credit Gateway. Additional information on the FMS credit gateway can be found at www.fms.treas.
gov/creditgateway/index. In addition, the financial institution should send an email to [email protected]
gov indicating the Lead Number(s) and ALC number prior to transmission along with the expected
date of deposit. For each transaction, please be sure to include date (month and day), lead number,
bank name, BL (to indicate “bank lead”) and the Tax Class Code (20X0903) in the Credit Gateway
Receiving Company Field for your transmission.
Email: [email protected]
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Manual: If unable to use the Credit Gateway, financial institutions may also return funds manually
via paper checks (i.e. cashier’s checks) with an attached copy of the Lead Spreadsheet that indicates
the Lead Number(s). This may be mailed directly to External Leads at:
Internal Revenue Service
Attn: External Leads Manager
P.O. Box 24012 Fresno, CA 93779
5.
IRS: Adjust Taxpayer Accounts based on Returned, Recovered Refunds
The External Leads team works in conjunction with IRS Submission Processing to reconcile and adjust
the accounts of each identifiable taxpayer.
Inquiries
Financial institutions may occasionally receive inquiries regarding funds returned to the IRS. Since it takes several
weeks for funds to be processed through accounting, phone assistors may not have information regarding the
returns. Once appropriate research has been conducted, taxpayers should receive further correspondence from
the IRS in most cases. When receiving inquiries, account holders can be advised that funds have been returned
to the IRS; however, it takes 6-8 weeks before account information is readily available. There is not a specific IRS
phone line for these inquiries. Any specific concerns from the financial institution may be directed to the External
Leads Program. The group mailbox is for financial institution, internal business unit, and state agency use only.
Publication 5033 (2-2013) Catalog Number 59732J Department of the Treasury Internal Revenue Service www.irs.gov