A manual refund, transaction code (TC) 840, is a refund that is not generated through normal Master File processing (TC 846). Manual refunds are requested on either Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund.
Employees from all functions can initiate requests for manual refunds. The Form 3753 or Form 5792 manual refund requests are prepared by the initiator and are processed by the Accounting Function of the Submission Processing Campus who schedules and certifies manual refunds.
All requests for manual refunds must be controlled and monitored on the Integrated Data Retrieval System (IDRS) by the initiator (or other management designated employee) to prevent duplicate, erroneous refunds. See IRM 220.127.116.11.1, Monitoring Manual Refunds, for more information.Exception:
Manual refunds issued for the Medical Resident Federal Insurance Contribution Act (FICA) Refund Claims are not included in the normal manual refund monitoring procedures. A unique process has been established in which the initiator will not be the individual monitoring the refund; instead, the originator of the perfected claim will conduct the monitoring. This process will ensure timely monitoring of these specific manual refunds. For more information, see IRM 18.104.22.168.10Medical/Dental Residents Excess FICA Claims (United States vs. Mayo Foundation or Minnesota vs. Apfel).
This IRM provides information on the types of manual refunds and the actions needed to initiate a manual refund. Other IRM sections will give specific situations when a manual refund is required."
The most frequent causes of manual refunds are:
The refund will be going to someone other than the entity name on the master file.
A hardship situation necessitates a quicker refund than normal systemic processing can provide, generally a request is sent by the Taxpayer Advocate Service (TAS) using an Operations Assistance Request (OAR).
The refund is not for a Master File account (e.g., Photocopy Fees or Credit Card Chargebacks), or
Systemic limitations prevent a normal computer generated refund.
Input of manual refunds without consideration of systemic account issues or Customer Account Data Engine (CADE) 2 processing (on Individual Master File (IMF) accounts) can result in erroneous refunds. In addition, improper IDRS controls and lack of required monitoring can result in erroneous refunds"