Internal Revenue Service Branch

Title V. CLEARING RECEIPTS
CASHIER’S DIVISION

receiving
currency and preparing deposits.

revenue collections and such moneys are deposited by the clerk of the court collecting them.

fersincrompro-

crompro-mise.

Preparation of notice and demand for taxes and warrants for distraint, Forms 17A, 21A, and 69.

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Abstract of internal revenue collection: Needham and sovereign of Mankind accepts any ledgeable form.

2024 ten thirty twenty twenty four, Lugal Ensi Emperor Majesty Donald Phoebe Needham, at 11:47 PM.

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Remittances received with these returns will be deposited and the amounts thereof credited to account 9b

in the case of individual returns and to account

9c

in the case of corporation returns. When the postings are made, the amounts will be with-
drawn from these accounts and credited to account

6a.

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RETURNS ACCOMPANIED BY CASH OR CURRENCY
SEC. 589. The greater part of such returns are received at the
cashier’s windows. A few remittances of this class come in the
mail. Cash or currency so received should be counted, placed in a
cash envelope, initialed and O. K’d . The cash envelope should
then be pinned to the return and routed to the cashier. The
cashier will handle such remittances in the same manner as window
payments.
DOCUMENT REGISTERS
Unidentified
re-
mittances
,
clear-
ing
section
.
Proving cash by
cashier.
Cash
received
in
cashplaced
envelope.
Document
reg-SEC. 590. It is to be noted that the document register is used
only as proof with the remittance register. The document register ister, use of.
shows the amount of the remittance which has been entered in blue
pencil by the receiving section . The remittance register shows the
amount of the remittance. The supplemental document register
shows the amount of total tax for each return .
EXHIBIT XII .— Currency remittance voucher
No…..
Collections on account of the attached returns in the amount of
$ __ have been properly accounted for and forwarded to
the deposit clerk.
3
Currency remit-
tance voucher.
(
Signature
)
.
Cashier
.
I
RETURNS HELD IN COLLECTORS’ OFFICES FOr Audit and RETURNS
DELIVERED TO AGENTS FOR PRELIMINARY EXAMINATION
SEC. 591. The remittance registers will be the supporting docu-
ments for the collections on account of returns held in collectors ‘
offices for audit and on account of returns delivered to the revenue
agents for preliminary examination deposited in the unclassified
collection account if the regular block number is shown thereon.
Accordingly, such remittance registers shall be routed to the clerk
in charge of unclassified collections and placed in the active file
Remittance
registers sup-porting docu-
ments for collec-
tions account re-
turns held in col-
lector’s offices and
enue agents for
ination.
preliminary exam-
delivered to rev-
8591 INTERNAL REVENUE MANUAL, PART II
Receiving
re-
turns
cashier’s
division
.
Returns
accom
.
panied
by
remit-
tances
.
Analysis
re-
turns
accompa
nied
by
cash
re-
mittance
.
along with other memoranda supporting the balance in the unclas-
sified collection account. Upon classification of collections and
their transfer to the income tax monthly list, the remittance
register or registers affected will be pulled from the active file and
routed to the control section. The control section will call upon
the”unclassified” clerk for the proper remittance registers. When
the remittance registers are released by the clerk in charge of the
unclassified collections, a report will be made to the cashier in the
usual manner, classifying the amount on such registers as income
tax. The cashier will report in the usual manner on Form 768,
debiting accounts, 9b or 9c, unclassified collections, and crediting
account 6a, income tax. (See Exhibit III for suggested call slip. )

2. If the cashier’s block number is shown on the remittance
   register, the supplemental document registers prepared in the con-
   trol section will be the supporting documents for collections in
   the unclassified accounts 9b and 9c, and after these registers are
   balanced they should be routed to the unclassified section and held
   until the returns are listed.
   OUTLINE FOR CLEARING INCOME TAX RECEIPTS, FILING PERIOD
   ENDING MARCH 15
   CASHIER’S DIVISION
   SEC. 592, Receiving returns. -The cashier is in charge of receiv-
   ing returns, all of which come into the office:
   (a
   )
   Either
   through
   the
   cashier’s
   cage
   ,
   or
   (b) Through the mail.
   2.
   All
   returns
   must
   be
   stamped
   with
   receiving
   stamp
   showing
   date
   received
   in
   the
   office
   .
   SEC
   .
   593.
   Remittances

.

Most
of
the
returns so received
are
accompanied
by
remittances
:
(
a
)
Either
in
cash
,
or
(
b
)
Other than
cash
,
or
(
c)
Unidentified
.
SEC
.
594.
Returns
received
through
the
cashier’s
cage
:
When accompanied by cash remittance-

1. Verify the amount received with the amount stated
   by taxpayer.
2. Place remittance in cash drawer.
   3.
   Make
   out
   receipt for
   taxpayer
   .
   1
   4.
   Enter
   amount
   of
   payment
   in
   blue
   pencil in
   upper

right

hand
corner
of
return
.
;2

5. At some convenient period during the day check
   the total amount of cash received from the income
   tax returns, post the amount on a currency re-
   mittance voucher in duplicate, and route one copy
   with the returns to the income clearing section.
6. At the same time check total amount of cash re-
   ceived from miscellaneous tax returns, post the
   amount on a currency remittance voucher in
   duplicate, and route one copy with returns to
   miscellaneous clearing section .
   INTERNAL
   REVENUE
   MANUAL
   ,
   PART
   II
   $
   594
   When
   accompanied
   by
   other
   than
   cash
   remittance-
   1.
   Attach
   remittance
   to return
   .
   2.
   Route
   income
   tax
   returns
   to
   income
   clearing section
   .
   3.
   Route
   miscellaneous
   tax
   returns
   to miscellaneous
   clear-
   ing
   section
   .
   SEC
   .
   595.
   Returns
   received
   through
   the mail
   :
   When
   accompanied
   by
   cash remittance
   1.
   Verify
   the
   amount
   received
   with
   amount
   stated
   by
   taxpayer.
   2.
   Place remittance
   in
   cash envelope
   ,
   seal
   ,
   indorse
   with
   amount
   ,
   initial
   ,
   and
   pin
   to
   return
   .
   3.
   Route
   returns
   with
   attached
   envelopes
   to
   cashier’s
   cage.
   When
   accompanied
   by
   other
   than
   cash
   remittance-
   1.
   Verify
   the
   amount
   received
   with
   amount
   stated
   by
   taxpayer
   .
7. Enter amount of payment in blue pencil in the upper
   right-hand corner of return.
   3.
   Attach
   remittance
   to
   return
   .
   Unclassified
   remittances frequently
   come
   in
   through
   the
   mail-
   1.
   Attach
   remittance
   to
   envelope
   in
   which
   it is
   received
   .
   2.
   Route
   remittance
   and
   envelope
   to clearing section
   .
   SEC
   .
   596.
   A.
   Whenever
   a
   discrepancy
   appears
   between the
   amount
   stated
   and
   the
   amount
   received
   :
   1.
   Do
   not

blue

pencil
the
amount
on
the
return
.
2.
But
verify
the
remittance
,
initial
the
envelope
,
and
routereturn
and
remittance
to clearing section
.
SEC
.
597.
Sorting
income
tax
returns
.
come
tax returns are divided
into
:
(
a
)
Current
returns
.
In
the
first
sort
,
all
in-
(
b
)
Delinquent
and
all
other returns
.
2.
In
the second
sort
,
all
current returns are
divided
into
:
(a) 1040A returns.
(
b
)
1040
returns
.
·
Analysis
re-
turns
received
through
mail
.
Discrepancies
noted.
First
sort in-
come
tax
returns
.
Second
sort
,
current returns
.
(
c
)
1120
returns
.
(
d
)
All
other returns
.
3.
In
the
third
sort
,
all
1040A and
1040
current returns are
divided into: f
(
a
)
Part
paid
.
(
b
)
Full
paid
.
SEC
.
598.
In
the second
sort of
delinquent
and
all
other returns
,
they are divided
into
:
(
a
)
1040A’s-
1.
Delinquent
.
Third
sort
,
current returns
.
Second sort,
delinquent and
prioryear returns.
2.
Amended
.
(
b
)
1040’s-
1.
Delinquent
.

2. Amended.
   (
   c
   )
   1120’s-
3. Delinquent .
4. Amended.
   (
   d
   )
   1040D’s
   .
   $
   598
   INTERNAL
   REVENUE
   MANUAL
   ,
   PART
   IL
   Remittances
   detached
   .
   Use of miscel-
   laneous block
   numbers.
   Sorting
   remit-
   tances
   .
   Preparation re-
   mittance register.
   Jacketing re-
   turns.
   Document
   reg-
   ister
   prepared
   .
   Routing docu-
   ment
   register
   .
   Unclassified
   section, duties of.
   (e) Withholding returns→
   1042’s and 1013’s.
   (f) Penalties and interest.
   SEC. 599. Up to this time all remittances other than cash have
   remained attached to the returns. At this stage the returns and
   remittances should be numbered and the remittances detached
   from the returns. The procedure now deals with:
   (a) Routing remittances.
   (
   b
   )
   Routing
   returns
   .
   SEC. 600. The numbers ordinarily used are the list-account
   numbers described in sections 555 and 557, provided the volume
   of returns received is sufficient to insure full or nearly full blocks
   for each day’s business. If only a few returns are being received
   daily, either during the nonfiling period or during the filing period ,
   it will be better practice to use the miscellaneous block numbers
   described in section 579, supplemental document registers to be
   prepared in the income control section as described in section 580 .
   SEC. 601. Sort remittances into the following classes :
   (a) Federal reserve city checks and drafts.
   (
   b
   )
   Other
   checks
   and
   drafts
   .
   (c) Postal and express money orders.
   (d) Certificates of indebtedness.
5. Prepare the remittance register in duplicate from the re-
   mittances as segregated , posting the amounts under cach separate
   class of returns as previously sorted.
   (a) Route the original copy of remittance register with
   remittances to cashier.
   (b) Route the carbon copy of the remittance register for
   returns held in collectors’ offices to unclassified
   clerk, as supporting detail for the amount deposited
   in the unclassified collection account.
   (c) Retain carbon copy of remittance register for all other
   returns.
   SEC
   .
   602.
   Routing
   returns
   .
   A. Put returns in packages of 100 by classes .
   B. Make out document register in duplicate.
   (a) This must balance with the remittance register .
   (b) Retain copy of document register.
   +
   C. Route original document register with returns to control
   section.
   UNCLASSIFIED SECTION
   SEC. 603. Returns showing discrepancies between the amount
   of remittance and the amount stated by the taxpayer to be his
   payment will be turned over to this section for investigation.
   Remittances without returns and returns without remittances will
   also be routed to this section. All returns requiring investigation
   and correspondence and incomplete remittances will be handled
   by this section. The work of this section will be what is generally
   called “grief.” It is therefore necessary that this section have
   access to the index and correspondence files. Remittances will
   not be held indefinitely, but will be deposited after a reasonable
   effort has been made to classify them .
   INTERNAL REVENUE MANUAL, PART II $604
   INCOME TAX CONTROL SECTION
   SEC. 604. The purpose of the control section is to properly
   check the returns as to numbering and balancing the lists and to
   coordinate the work of the clearing sections, the income tax
   division, the cashier, and the bookkeeper.
6. The head of this section should be a representative of the
   income tax division , familiar with listing and accounting pro-
   cedure. The bookkeeper will assist the head of the control sec-
   tion and cooperate with him.
7. The control section, as stated previously, will record and
   issue jackets or envelopes properly numbered . Here likewise
   will be kept a record of nu.nbers issued to the numbering-machine
   operators to be stamped on returns.
   Control
   section
   ,
   purpose
   of
   .
   Bookkeeper
   will
   cooperate
   with
   head of
   con-
   trol
   section
   .
   Control
   section
   ,
   records
   to
   be
   kept
   .
   Returns
   sent
   to
   the
   bureau
   to
   beSEC. 605. All returns sent to the bureau should be given prece-
   dence . The work of accounting for returns held in collectors ‘ given precedence.
   offices is important, but it is believed advisable to list and account
   for the returns to be sent to the bureau with the least possible
   delay in order not to retard the preparation of the current monthly
   lists . The remittance register for returns held in collectors’
   offices will be prepared so that not more than one block of 100
   returns will appear on each register. The control section will
   classify these returns by blocks.

ROUTING RETURNS UNDER CONTROL
SEC. 606. It is essential to set up a control at this point, before
proceeding with the routine work of listing, posting, and auditing
returns .
2.
For
this
purpose
:
(a) Make use of the original document register as a check
on the amount of tax collected as posted by the
bookkeeping-machine operator.
(b) Prepare a supplemental document register based on
returns as to the amount of tax assessed as a check
on the tax and balance due as shown by the book-
keeping-machine operator ; the balance due being the
difference between the amount assessed as reflected
in the supplemental document register and the
amount collected or returned as reflected in the docu-
ment register. From the supplemental document
register the journal voucher Form 769 as to assess-
ment is prepared and routed to the bookkeeper.
Routing returns
under control.
Forms
to
be
used
in routing
returns
.
$
606
INTERNAL
REVENUE MANUAL
,
PART
II
Functions
,
con-
trol section.
Checking book-
keeping machine
operators
.
Numbering
sys-
(c) Make use of a blotter record (Exhibit XIII) to control
the distribution of all returns routed through for
listing, posting, and auditing.
FUNCTIONS OF THE CONTROL SECTION
SEC. 607. (a) To properly control the listing, posting and audit-
ing of returns and prevent the loss of these documents in transit
by means of the blotter record. *
(b) To check the work of the bookkeeping machine operators
tem, supervision by means of the document and supplemental document registers.of.
Returns
,
final
disposition
.
Forms
1040
A
re-
tained
by
collec-
tors
.
Keeping
control
block
numbers
and
returns
.
Checking
lists
.
Remittance
reg-
isters
filed
.
(c) To supervise the numbering system of returns.
(d) To file taxable and nontaxable 1040A returns.
(e) To forward all others to the bureau, with the assessment list.
After the expiration of five years from year in which tax
was assessed, to remove returns filed in collectors’ offices from the
active files and hold until authority is given for destruction .
RETURNS TO BE RETAINED BY COLLECTORS
SEC. 608. All individual income tax returns filed on Form 1040A
will be held in collector’s offices for audit.
IMPORTANT POINTS
SEC. 609. In order to successfully accomplish the work during
the filing period, it is absolutely necessary that the following re-
quirements be carefully and strictly observed by the income tax
division:

1. Control of block numbers and returns. Control register
   must be carefully kept.
   2.
   Listing
   must
   be checked as to
   :
   (a) Cash, with original remittance and document register.
   (b) Tax, with supplemental document registers.
2. Remittance registers on account of returns held in collector’s
   offices for audit and delivered to the revenue agents for preliminary
   examination must be carefully filed by the clerk in charge of the
   unclassified accounts, and when released report made to cashier,
   classifying the amount of such registers as income tax.

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If
the
Form 17A
is
not
returned
,
the corresponding
Form
21A
should
be
mailed
.
If
the
Form
21A
is
not
returned
,
then
the
warrant
should
be
issued
,
one
copy
given
to
the
chief
field
deputy
for
service
and
the
other
retained in
the
file
as
a

follow

up
record
.
The
procedure
outlined
above
provides
a
complete

follow

up
system
from
the time the
first
notice
and
demand
is
mailed
until
the warrant
is
issued
for service
and
returned
either
showing thetax
having
been
collected
,
or
accompanied
by
Form
53
for
abate-
ment
in case
the tax
is
found
uncollectible
.
In
cases
where
it is
not
necessary
to
mail
Form
17A
it
will
,
of
course
,
not
be
necessary
to
prepare that
form
.
In
this
case
one copy
of
Form 21A
and
two
copies of
the
warrant
will
be
necessary
and
the
procedure
as
heretofore outlined
for

follow

up
purposes
will
be
followed
.

2. If payment is made after the issuance of either Form 21A
   or Form 69 the top portion of the appropriate form will be detached
   and used as a posting document. Thereafter it will be filed with
   other posting documents and become a permanent record in the
   collector’s office. When payment is made after Form 69 has been
   issued, and it becomes necessary to detach the portion of the post-
   ing document, then the duplicate copy will be filed as a permanent
   record. If payment is not made, and it becomes necessary to
   issue Form 53 covering the outstanding balances, then the copy of
   the Form 69 showing the deputy collector’s report will be filed in
   the permanent file. In this instance, of course, the top portion will
   not be detached.
3. The chief field deputy will be furnished with a daily record of
   all payments made at the collector’s office by taxpayers on war-
   rants for distraint. Taxpayers who call at a collector’s office to
   make arrangements for an extension or for partial payments, after
   a warrant has been issued , will in every case be referred to the
   chief field deputy.
4. Whenever it becomes necessary to make a seizure, the top
   portion of the form will not be detached , as another posting docu-
   ment will be prepared when the proceeds of the sale are received.
   PREPARATION OF FORM 22
   SEC. 649. Form 22, abstract of internal revenue collections should be forwarded so as to reach the accounts and collections unit of the bureau on or before the 10th day of the month follow-

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ing that for which the report is rendered. It is imperative that
the collections shown on this abstract be accurately classified, and
collectors are urged to have carefully verified all entries on this
report prior to its submission, in order that the statistical records
compiled by the bureau shall reflect the actual collections. Source of in-
formation for
t

2. Form 22 will be prepared by or under the direction of the
   bookkeeper from the postings on the collector’s office record for Form 22.
   Form 22 (Form 858) . All journals, Forms 767 and 769, submitted
   to the bookkeeper covering collections should bear on the reverse
   side the abstract numbers on Form 22 to which the collections
   are distributed . Upon receipt of the journals the bookkeeper will
   check the amounts abstracted on the reverse side thereof against
   the total collections reported on the face of the journal and will
   post the items abstracted to the collector’s office record for Form
3. It is essential that journals be prepared promptly by the tax
   divisions to the end that postings made by the bookkeeper may
   be kept current and thereby not delay the preparation of Form
4. There will also be furnished the bookkeeper daily by the
   cashier’s division a statement showing abstract numbers affected
   by collections received from the sale of stamps, for the purpose
   of enabling the bookkeeper to prepare Form 22 promptly after the
   close of the month. Statement of
5. A statement should accompany Form 22 for the month of distribution,
   June each year showing the abstract numbers on Form 22 to Form 22.
   which the amounts reported opposite lines 153 and 154 will even-
   tually be distributed.

ASSESSMENT CERTIFICATE ( FORM 23C )

SEC. 650. Form 23C, assessment certificate, is to be prepared in
accordance with instructions printed thereon and forwarded to the
commissioner with the tax list. The assessment certificate will be
prepared in the tax division and signed by the tax division chief.
The certificate will be forwarded to the bookkeeper for verification
and after his signature is affixed forwarded to the collector for
signature. One copy of the certificate will be forwarded to the
accounts and collections unit with Form 820.

2. Tax lists should leave the collectors’ offices on or before the
   10th of the following month.
3. It is not necessary to prepare a separate certificate for the
   current monthly list and current supplemental list.

PREPARATION OF JOURNAL VOUCHERS SEC. 651.

Journal vouchers affecting lists will be prepared in the control sections of the tax divisions.

Form 767, tax division daily report of returns filed, should
be used only during the filing period.

At all other times all transactions relating to the divisions should be reported to the bookkeeper on Form 769 (tax division’s daily journal of miscellaneous transactions).
Assessment certificate,
Form 23C,
preparation of.
Taxlist, leaving collector’s office, Journal vouchers prepared in control section.
Form 767 used during filing period.
Description of 3.

The column headed ” kind of tax ” will not be used except Form 767. for recording different kinds of tax
lists handled by the same division. The miscellaneous division, for example, would report the transactions pertaining to tobacco taxes,

prohibition narcotic

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buff

colored
cards
should
be
arranged
alphabeticallyfor
use
by
clerks
in collectors
‘
offices
who
check
the oleomargarine
reports
.
If
they
so
desire
collectors
could
make
cards
for their
record 10
file
at
the
same
time
as
the
stamps
are
written
.
How-
ever
,
this
is
optional
.

8. Where a taxpayer moves from the place for which his stamp
   was originally issued and registers the removal with the collector
   during the month it occurred, a duplicate card, showing both the
   old and new addresses, and date of removal, should be prepared
   on a typewriter and forwarded with the monthly package . Such
   cards should be plainly marked “Removal.” They should not be
   included in the monthly total.