Effective Date: July 15, 2002

Transcription

1 Federal Reserve Electronic Tax Application (FR-ETA) Financial Institution Guidelines For Making Same-Day Federal Tax Payments In EFTPS (Electronic Federal Tax Payment System) Effective Date: July 15, 2002 This document supersedes all previous FR-ETA versions of this information.

2 Table of Contents Page Section I Preface I-1 Section II General Administration II-1 Enrollment Same-Day Federal Tax Payment Alternatives.. Deadline for Transmission Data Required... Tax Type Codes Transaction Reference Information.. Rejected Same-Day Federal Tax Payments. Requests to Reverse Same-Day Federal Tax Payments.. Data Retention.. Testing.. Section III Funds III-1 II-1 II-1 II-1 II-2 II-4 II-4 II-5 II-5 II-6 II-6 Expanded Fedwire Operating Hours III-1 Fedwire Federal Tax Payment Screen for FedLine Users. III-1 Wire Format.. III-3 {4200} Beneficiary Field... III-4 {6000} Originator to Beneficiary Field III-5 Bulk Filer Wires III-9 Format for Same-Day Reversal Request.. III-13 Section IV Qualified Intermediaries (Foreign Taxpayers) IV-1 MT100/103 SWIFT Format.... MT202 SWIFT Format... IV-2 IV-4 Section V Treasury Tax & Loan V-1 General Information.. V-1 Posting Information.. V-2 Section VI Questions and Answers VI-1 Section VII Glossary VII-1 Section VIII Contacts VIII-1 Section IX Taxpayer Worksheet and Information IX-1 Taxpayer Worksheet. Valid Tax Types and Subtypes. IX-1 IX-3 Effective July 15, 2002

3 Section I: Preface This document provides consolidated information to financial institutions (FIs) regarding same-day payment methods to remit Federal tax payments for business taxpayers. This version supersedes the earlier version dated July 1, 2001, which can be discarded. Updates in this document include: Addition of information for foreign taxpayers; Expanded dollar amount field in Fedwire Funds; Changes for Bulk Filer wires; Reference to EFTPS-Online. Note: This document pertains solely to the same-day EFTPS payment methods. For future-day EFTPS payment methods (ACH), please refer to the Treasury's updated "Financial Institution Handbook for EFTPS", available on-line at: Or visit EFTPS-OnLine at: Note: "FedLine" and "Fedwire" are registered trademarks of the Federal Reserve Banks. I-1 Effective July 15, 2002

4 Section II: General Administration Enrollment The IRS requires taxpayers to enroll to participate in the EFTPS. Certain business taxpayers are mandated to pay Federal taxes electronically. These businesses receive notification from the IRS, including an EFTPS enrollment form and instructions for completing the enrollment process. Taxpayers can volunteer at any time to pay Federal taxes electronically. Business taxpayers may obtain enrollment forms by contacting the appropriate EFTPS Customer Service Center (see Section VIII). Or taxpayers may choose to enroll online, by visiting the EFTPS website ( FIs may also opt to have blank forms on hand for their customers. Same-Day Federal Tax Payment Alternatives FIs have two same-day payment alternatives: Fedwire Value (Typecode 1000) Tax Payment: Value Fedwire funds transfers settle immediately - the FI is debited and the Treasury is credited through Fedwire. FR- ETA passes the tax payment information to the Treasury Investment Program (TIP). For Retainer or Investor FIs with capacity, TIP reinvests these funds by crediting the FI's TT&L Main account and debiting the Treasury. Fedwire Non-Value (Typecode 1090, Business Function Code of IRS) Tax Payment: This option settles the tax payment through the TIP. The amount is credited to the Treasury (for Collector or non-tt&l FIs) or to the FI s TT&L Main account (for Retainer or Investor FIs with capacity). Deadline for Transmission of Same-Day Federal Tax Payments The FI must transmit same-day Federal tax payments to FR-ETA no later than 5:00 p.m. Eastern Time (ET). Please note the following points: Tax payments sent after the cutoff time will be rejected. Late payments may be subject to IRS penalty. It is recommended that the FI transmit the message well in advance of the 5:00 p.m. ET cutoff, to allow for possible rejection and return, data correction, and retransmission of the tax payment. The taxpayer should make arrangements to be immediately notified by their FI if a same-day tax payment is rejected and returned, so that the transaction can be corrected and resubmitted before the cutoff. Effective July 15, 2002 II-1

5 Data Required to Send a Same-Day Federal Tax Payment The following information (below and on the next page) is required to accurately send a Federal Tax payment to FR-ETA: Field: Description or comment: Fedwire Typecode 1000 (value) Receiver ABA ETA FRB MPLS Yes Yes and name Typecode: For use in Fedwire only Amount: Business Function Code: ID Code and Identifier: Total amount of the payment, including any interest or penalty. Yes (less than $10 billion) Fedwire Typecode 1090 (non-value) Yes (less than $10 billion) For use in Fedwire only. CTR IRS Optional fields in Fedwire; can be used to identify your customer (e.g., your customer's account number). If ID Code is used, the Identifier field must be filled. If ID Code is used, the Identifier field must be filled. Name: Business taxpayer's name. Yes Yes Address: Optional; up to 3 lines Yes Yes available for the business taxpayer's address. IRS Service Yes Yes Center: Contact Name: Business taxpayer or FI contact Yes Yes (optional, but encouraged). Telephone Number: Phone number of contact person (optional, but encouraged). Yes Yes Taxpayer Identification Number: Name Control: 9-digit number assigned by the IRS. Also known as the Taxpayer ID Number (TIN) or the Employer's ID Number (EIN). 4 characters, assigned by the IRS. Frequently the first 4 significant characters of the business taxpayer's name. Yes Yes Yes Yes II-2 Effective July 15, 2002

6 Field: Description or Comment: Fedwire Typecode 1000 (value) Tax Type or For individual business Yes Yes Reference taxpayers: the 5-characters Number: corresponding to a specific tax form number and payment type. (See Section IX for valid tax types.) For Bulk Filers: the 5-character Yes Yes reference assigned by the TFA. Year: 2-digit valid tax year. Yes Yes Month: Yes Yes Tax Amount: Interest: Penalty: Abstract or Subcategory: 2-digit valid tax month. Singledigit months should include a leading zero; e.g., 03. See Section IX for the valid months for each tax type. Optional; that portion of the total amount which comprises only the tax. Optional; that portion of the total amount which comprises only the interest. Optional; that portion of the total amount which comprises only the penalty. Optional. Abstract number or subcategory associated with certain tax types. See Section IX for valid abstract and subcategories. Yes Yes Yes Yes Fedwire Typecode 1090 (non-value) Yes Yes Yes Yes Effective July 15, 2002 II-3

7 Tax Type Codes Section IX provides a listing of the valid tax type and subtype codes payable in EFTPS. The EFTPS tax type codes have a four-digit prefix (which designates the IRS form number) and a one-character suffix, which designates the type of payment. For example, the Typecode designates IRS Form Number 941, Employer's Quarterly Federal Tax Return and the suffix 5 designates a Federal tax deposit. The number of valid suffixes varies with each tax type (see the "Valid Suffixes" column in Section IX). In the event FR-ETA is unable to determine the tax type based on the information provided, FR-ETA will report the tax type information to the IRS using the appropriate default tax type. Transaction Reference Information Treasury regulations require the FI to provide both the IMAD number (assigned by the Federal Reserve's Fedwire system) and the 15-digit Electronic Funds Transfer (EFT) number (assigned by the FR-ETA) to the taxpayer upon request. The taxpayer may require these reference numbers to facilitate proof of payment. If the reference numbers are needed on the payment date, the FI may contact FR-ETA directly to obtain the EFT number. If the reference numbers are needed after the payment date, the taxpayer may call its designated EFTPS Customer Service Helpline or access the information through the EFTPS website (see Section VIII). II-4 Effective July 15, 2002

8 Rejected Same-Day Federal Tax Payments Federal tax payments sent after the 5:00 p.m. ET cutoff are rejected. Tax payments may be rejected and returned for other reasons. These reasons could include, but may not be limited to: incorrect formatting; incorrect Business Function Code; incorrect Fedwire Typecode (only Typecodes 1000 and 1090 may be used, as described herein); invalid Receiver ABA; invalid Taxpayer Identification Number (TIN); other edits as prescribed by the IRS. Same-day Fedwire tax payments received with errors may be returned to the originating FI by the FR-ETA. The returned messages have a brief description of the reason for return. The FI is responsible for resubmitting the corrected transmission as timely as possible. Example: Wire Typecode sent by FI (to FR-ETA): Rejected by FR-ETA and Returned via Typecode: 1000, CTR 1/ 1002, CTR 1/ 1090, IRS 1/ 1090, SVC 1/ 1/ Business Function Code Requests to Reverse Same-Day Federal Tax Payments Same-day electronic tax payments may be reversed at the request of the originating FI. The Typecode of the original tax payment and the timing of the request determine the request Typecode. Section III has specific examples of requests to reverse Fedwire Federal tax payments. A request to reverse a transaction must be received by the FR-ETA within 5 business days after the original transaction. The entire transaction (not a partial transaction) must be reversed. After 5 business days, the IRS must be contacted directly. For further assistance, the IRS toll-free number that FIs and/or taxpayers may call is: , Monday through Friday, 8:00 a.m. - 8:00 p.m. ET. Before the 5:00 p.m. ET cutoff, on the same day: A request to reverse a transaction on the same day must be received by FR-ETA before the 5:00 p.m. ET cutoff time. The FI must supply an appropriate reason for the request. Effective July 15, 2002 II-5

9 If the original transaction was a: the FI should: Typecode 1000 (value) wire, submit a Typecode 1001 wire to FR-ETA. Typecode 1090 (non-value) wire, submit a 1090 SVC wire to FR-ETA. On Subsequent days (up to 5 business days after the original transaction): A request to reverse a transaction on subsequent days must be received by FR-ETA before the 5:00 p.m. ET cutoff time. The FI must supply an appropriate reason for the request. If the original transaction was a: the FI should: Typecode 1000 (value) wire, submit a Typecode 1007 wire to FR-ETA. Typecode 1090 (non-value) wire, submit a 1090 SVC wire to FR-ETA. Data Retention Upon request, historical tax payment information is available for seven years. FIs may contact the EFTPS Customer Helpline. EFTPS-OnLine has up to 120 days of tax payment history available (see Section VIII). Testing The FR-ETA system is available to support testing with financial institutions, between the hours of 10:00 a.m. ET and 5:00 p.m. ET, Monday through Friday (except for Federal holidays). Please note the following: The FR-ETA system cycle date will be the same as the Fedwire Funds Transfer test environment (DIT) cycle date. The FI must have test facilities and test definitions established for Fedwire. The FI may contact their local Federal Reserve Bank to coordinate testing. The local FRB may assist the FI and ensure that proper test systems and communications are available. To schedule testing with FR-ETA, please contact the FR-ETA Customer Service Unit (CSU) at (800) and ask to speak with a Testing Representative. II-6 Effective July 15, 2002

10 Section III: FUNDS Expanded Fedwire Operating Hours Fedwire Funds Transfer begins daily operations at 12:30 a.m. Eastern Time. The current hours for FR-ETA processing of same-day Federal tax deposits are 8:30 a.m. ET to 5:00 p.m. ET. Any Federal tax payment transactions sent before 8:30 a.m. ET are queued for processing when the FR-ETA opens for the day. Fedwire Federal Tax Payment Screen for FedLine Users A specific FedLine screen is available to enter Fedwire Federal tax payments in the expanded Funds format. This screen is preformatted and contains some edits, to assist FIs in accurately entering and transmitting Fedwire tax payments. Below, and on the following pages, are samples of the Fedwire Tax Payment screen followed by the descriptions of the information to enter in each field. Example: Fedwire Tax Payment with Tax, Interest, Penalty and Abstracts Sender ABA: Your ABA Name: Your FI Name Receiver ABA: Name: FRB Mpls FR-ETA Typecode: 1000 (or 1090) Amount: 1,250, Bus. Function Code: CTR (or IRS) Ref. #: Originator: ID Code: Identifier: Name: Northland Electronics Adr: 123 Main Street Adr: Suite 700 Adr: Townsville, ST IRS Service Center: Contact Name: Jane Smith Telephone Number: (404) Identification Number: Name Control: NORT Name: Northland Electronics Tax Type or Ref. #: Year: 02 Month: 12 Tax Amount: 1,000, Interest Amount 200, Penalty Amount: 50, Abstract/Subcat: 014 Amount: 750, Abstract/Subcat: 016 Amount: 250, Abstract/Subcat: Amount: Abstract/Subcat: Amount: Effective July 15, 2002 III-1

11 In the tax type "94108" below, the "8" reflects an interest payment only. Example: Fedwire Typecode 1090 Tax Deposit - Interest only (Form 941) Sender ABA: Your ABA Name: Your Bank Name Receiver ABA: Name: FRB Mpls FR-ETA Typecode: 1090 Amount: 1, Bus. Function Code: IRS Ref. #: Originator: ID Code: Identifier: Name: Northland Electronics Adr: 123 Main Street Adr: Suite 700 Adr: Townsville, ST IRS Service Center: Contact Name: Jane Smith Telephone Number: (404) Identification Number: Name Control: NORT Name: Northland Electronics Tax Type or Ref. #: Year: 02 Month: 12 Tax Amount: Interest Amount Penalty Amount: Abstract/Subcat: Amount: Abstract/Subcat: Amount: Abstract/Subcat: Amount: Abstract/Subcat: Amount: III-2 Effective July 15, 2002

12 Wire Format The table below shows the required field contents for Fedwire Typecode 1000 and Typecode 1090 tax payments using the required specific format. Fields that contain the same information in both typecodes span both columns of the table. Fedwire Typecode 1000 and 1090 Tax Message Field Names and Contents Field Name Typecode 1000 (value) Typecode 1090 (non-value) {1510} Typecode {2000} Amount Total deposit amount* with commas and decimal point. The amount must be numeric, greater than $0.00 and less than $10 billion. The dollar sign is not required. {3100} Sender ABA and Name {3400} Receiver ABA Number and Name {3600} Business Function Code Originating ABA and Short Name FRB MPLS FR-ETA CTR IRS {4100} Beneficiary FI D IRS Contact Name and Telephone Number EXAMPLE: Contact-Jane Smith (404) {4200} Beneficiary Note: Fedwire requires a numeric ID Code in the first position of this field. FR-ETA ignores that first position on Federal tax payments. {6000} Originator to Beneficiary Information 9Taxpayer ID Number:Name Control: Taxpayer Name: Tax Type:Tax Year:Tax Month: Breakdown of tax payment. Sum must equal total amount in {2000} Amount, above. Variable elements are italicized. Nonvariable elements are in bold typeface. * Users of computer-interface systems should consult with their software vendors on the use of commas and decimals. Effective July 15, 2002 III-3

13 {4200} Beneficiary Field As shown in the example below, the Beneficiary field includes a series of subfields that contain taxpayer detail information necessary for transaction processing. Each Beneficiary subfield must be followed by a colon (:), including the last subfield. The information will not be edited by Fedwire, but may subsequently be rejected by FR-ETA for failing IRS edits. Funds transfer messages that do not pass FR-ETA edits will be returned promptly to the originating FI with a message providing the reason. Example: Correct Format for the Beneficiary Field in an EFTPS Tax Deposit :NORT:NORTHLAND ELECTRONICS:94105:02:12: NOTE: Errors may result in incorrect reporting of information or late payments and possible penalties. The following table provides a listing, description, and examples of the required Beneficiary subfields for a Fedwire tax deposit. Required Beneficiary Subfields - Remember the colon (:) after each subfield. Subfield Description Example Comments Taxpayer Identification Number (TIN) Taxpayer Name Control Taxpayer Name Up to 35 characters 9 digits : The TIN is unique for each taxpayer and is assigned by the IRS. NOTE: do not use which is the IRS Service Center. 4 characters NORT: Usually the first four significant characters of the taxpayer s business name. The name control is assigned by the IRS. NORTHLAND ELECTRONICS: The name of the business for which taxes are being paid. Tax Type Code 5 digits 94105: A five-character code that corresponds to a tax form number and type of payment. See Section IX for a list of valid tax types. Tax Year 2 digits 02: The two-digit valid tax year code. Tax Month 2 digits 12: The two-digit valid tax month code. See Section IX for valid months for each tax type. NOTE: Use 0" for the first digit of a single digit month (for example, 03 for March). III-4 Effective July 15, 2002

14 {6000} Originator to Beneficiary Information Field Tax, Interest, Penalty, and Subtype In EFTPS, taxpayers can pay interest and penalties, in addition to making tax deposits. In a same-day Fedwire tax deposit, the Originator to Beneficiary field is reserved for information about tax, interest, penalty, and tax subtypes (abstracts and subcategories). Fedwire will not edit this information but the information will be edited by the FR-ETA application. Certain errors may result in the incorrect reporting of tax information to the IRS. To pay interest or penalties separate from tax, the originator can also create a separate funds transfer using the appropriate tax type code in the Beneficiary field. See Section IX for interest and penalty tax type codes, and page III-2 for a sample screen demonstrating use of the Beneficiary field to pay only interest. The IRS has requested that taxpayers report abstract and subcategory information (subtypes) for tax types 720/720M, 941, and CT-1 (see Section IX). This information, also, can be reported in the Originator to Beneficiary field following the tax, interest, and penalty information. Originator to Beneficiary Subfields In a Fedwire tax deposit, the Originator to Beneficiary field is divided into a series of subfields. Tax, interest, penalty, and subtype amounts are reported in the Originator to Beneficiary subfields, as shown in the following examples and tables. Interest and/or penalty may be reported here even if there is no tax amount to pay. The sum of tax, interest, and penalty or subtype subfields must equal the total amount of the funds transfer. The table on the next page provides requirements for tax, interest, and penalty reporting in the Originator to Beneficiary field. Effective July 15, 2002 III-5

15 NOTE: The sum of the tax, interest, and penalty amounts (if reported) must equal the total dollar amount of the tax deposit. If the sum of the tax, interest, and penalty amounts does not equal the total dollar amount of the Fedwire funds transfer, the total amount of the funds transfer will be reported as only the tax amount. Requirements for Tax, Interest, and Penalty Reporting in EFTPS Subfield Code Subfield Name Description and Instructions T Tax Amount The dollar amount of the tax obligation. The letter T, a dollar sign ($), the dollar amount with a decimal point, and final colon are required to designate the tax amount subfield if you are reporting a tax amount in the Originator to Beneficiary field. EXAMPLE: T$ : or T$10,000.00: The tax amount may be further subdivided into tax subtype (abstract and subcategory) amounts (see the table on the next page for information on reporting tax subtypes with Form Numbers 720/720M, 941, and CT-1). If no dollar value is reported in the tax amount subfield, you may omit the tax subfield information or report it as T$0.00: I Interest Amount The dollar amount of an interest payment. The interest amount is reported separately from the tax and penalty amount. Type the letter I, the dollar sign ($), the dollar amount with a decimal point, and a final colon in the interest amount subfield, as shown below: EXAMPLE: I$ : or I$1,000.00: If no dollar value is reported in the interest amount subfield, you may omit the interest subfield information or report it as I$0.00: P Penalty Amount The dollar amount of a penalty payment. The penalty amount is reported separately from the tax and interest amounts. Type the letter P, a dollar sign ($), the dollar amount with a decimal point, and a final colon in the penalty amount subfield, as shown below: EXAMPLE: P$ : or P$1,000.00: If no dollar value is reported in the penalty amount subfield, you may omit the penalty subfield information or report it as P$0.00: The table on the next page shows the format for reporting the requested tax subtype components for Form Numbers 720/720M, 941, and CT-1 in the Originator to Beneficiary field. III-6 Effective July 15, 2002

16 Requirements for Tax Subtype Reporting in EFTPS Subfield Code Subfield Name Description and Instructions XXX (3 digits) Abstract Number EXAMPLE: 058 Abstract numbers are used for reporting Form Number 720 and 720M tax subtypes (see Section IX for a list of eligible abstract numbers). NOTE: Convert two-digit abstract numbers to the required three digits by placing a 0 in the first position. Each Form Number 720/720M tax deposit may contain one or more abstract numbers. The three-digit abstract code, a dollar sign ($), the dollar amount with a decimal point, and final colon are required for each abstract reported. EXAMPLE: 058$3,500.00: or 058$ : If the sum of the abstract amounts does not equal the tax amount, only the tax amount is reported to the IRS. XXXX (4 characters) Subcategory Code EXAMPLES: MEDI RRT1 Subcategory codes are used for reporting Form Numbers 941 and CT-1 tax subtypes (see Section IX for a list of eligible subcategory codes). Each Form Number 941 or CT-1 deposit may contain one or more subcategory codes. The four-digit subcategory code, the dollar sign ($), the dollar amount with a decimal point, and final colon are required for each subcategory reported. EXAMPLE: MEDI$2,500.00: or MEDI$ : If the sum of the subcategory amounts does not equal the tax amount, only the tax amount is reported to the IRS. Effective July 15, 2002 III-7

17 Examples of completed Originator to Beneficiary fields for Fedwire tax deposits are shown in the table below. Sample Tax Deposits and Originator to Beneficiary Field Formats in EFTPS Tax Deposit Example Form Number 940: $100, deposit with no interest or penalty. Form Number 720: $100, deposit, with abstract numbers 14, 16, and 17. Originator to Beneficiary Field Format in EFTPS T$100,000.00: or (leave blank) See Note 1. T$100,000.00:014$50,000.00:016$25,000.00:017$25,000.00: or 014$50,000.00:016$25,000.00:017$25,000.00: See Notes 2 and 3. Form Number 941: $100, deposit with subcategory codes SOCS, MEDI, and WITH. T$100,000.00:SOCS$20,000.00:MEDI$20,000.00: WITH$60,000.00: or SOCS$20,000.00:MEDI$20,000.00:WITH$60,000.00: See Notes 2, 3, and 4. Form Number CT-1: $100, deposit with $80, tax, $10, interest, $10, penalty, and subcategory codes RRT1 and RRT2. Form Number 945: $1, deposit with $1, interest payment only. T$80,000.00:I$10,000.00:P$10,000.00:RRT1$40,000.00: RRT2$40,000.00: See Notes 2, 3, 4, and 5. I$1,000.00: or (leave blank) See Notes 1 and 6. NOTES: 1. This tax type does not have subtypes. 2. If a tax subtype is reported, it must have a dollar amount. 3. The sum of the subtypes must equal the tax amount. 4. Line breaks in this table are due solely to space limitations and do not illustrate Fedwire conventions. 5. The sum of tax, interest, and penalty amounts in the Originator to Beneficiary field must equal the total amount of the deposit. 6. This deposit requires the appropriate tax type code for Form Number 945, as determined by the fifth digit (e.g., 09458) in the tax type code subfield in the Beneficiary field. The taxpayer provides tax, interest, penalty, and the requested tax subtype information to the FI. Section IX includes the Taxpayer Worksheet and a list of Valid IRS Tax Types and Subtypes in EFTPS, which the FI may copy and provide to the business taxpayer for providing complete and accurate information to the FI. NOTE: The Taxpayer Worksheet is an optional tool for FI and taxpayer use. The worksheet's information fields are in the same sequence as the taxpayer detail information in the specific Fedwire format. III-8 Effective July 15, 2002

18 Bulk Filer Wires Bulk Filers (large third-party payroll processors) are allowed to electronically remit Federal taxes on behalf of their customers. Some Bulk Filers require a same-day reporting method. In this situation, the Bulk Filer transmits taxpayer detail files to the Treasury Financial Agent (TFA) for validation. Upon acceptance, the TFA sends a confirmation message, with a unique five-digit reference number, to the Bulk Filer. The Bulk Filer asks its FI to send a Fedwire tax deposit for the aggregate tax payment amount, using the five-digit reference number assigned by the TFA. The FI transmits the Fedwire tax deposit to FR-ETA by 5:00 p.m. ET. The TFA receives a message copy of any Bulk Filer Federal tax deposit processed through Fedwire to facilitate reconcilement. The tables on the following pages show the required field contents for the Fedwire tax payment using the required specific format. Following the table are examples for each Bulk Filer s TFA. Note: As of January 2002, FIs are now able to use Typecode 1000 wires for Bulk Filer transactions, in addition to the Typecode The only format difference between Bulk Filer Typecode 1000s and Typecode 1090s will be in the Business Function Code: 1090s use IRS, 1000s use CTR. Effective July 15, 2002 III-9

19 Bulk Filer Fedwire Typecode 1000 and 1090 Tax Deposit Field Names and Contents Field Name Typecode 1000 (value) Typecode 1090 (non-value) {1510} Typecode {2000} Amount Total deposit amount* with commas and decimal point. The amount must be numeric, greater than $0.00 and less than $10 billion. The dollar sign is not required. {3100} Sender ABA and Name {3400} Receiver ABA Number and Name {3600} Business Function Code Originating ABA and Short Name FRBM/Bank One or FRBM/Bk of America CTR IRS {4100} Beneficiary FI D IRS Contact Name and Telephone Number EXAMPLE: Contact-Jane Smith (404) {4200} Beneficiary Note: Fedwire requires a numeric ID Code in the first position of this field. FR-ETA ignores that first position on Federal tax payments. 9Bulk Filer ID Number:Name Control: Bulk Filer Name: Reference Number:Tax Year:Tax Month: Variable elements are italicized. Nonvariable elements are in bold typeface. * Users of computer-interface systems should consult with their software vendors on the use of commas and decimals. III-10 Effective July 15, 2002

20 Required {4200}Beneficiary Information Subfields (For Bulk Filers) Subfield Description Example Comments Bulk Filer Registration Number Bulk Filer Name Control Bulk Filer Name Up to 35 characters 9 digits : The number is unique for each Bulk Filer. 4 characters ABCP: The first four significant characters of the Bulk Filer s business name. ABC Payer: The name of the Bulk Filer processing taxes for its customers (multiple taxpayers). Reference Number 5 characters 12345: A five-character code assigned to the file by the Bulk Filer s TFA. Can be alpha-numeric. Current Tax Year 2 digits 02: The two-digit valid tax year code. Current Tax Month 2 digits 06: The two-digit current month. NOTE: Use 0" for the first digit of a single digit month (for example, 03 for March). Effective July 15, 2002 III-11

21 Example of Fedwire Typecode 1090 for Bulk Filers: Reporting through Bank One (as TFA) {1510} Typecode 1090 {2000} Amount 1,250,000.00* {3100} Sender FI (Your ABA) (Your Bank Name) {3400} Receiver Financial Institution FRBM/BANK ONE {3600} Business Function Code IRS {4100} Beneficiary s Financial Institution D IRS CONTACT - JANE SMITH (404) {4200} Beneficiary Note: Fedwire requires a numeric ID Code in the first position of this field. FR-ETA ignores that first position, on Federal tax payments :ABCP: ABCPAYER: 12345:02:06: Example of Fedwire Typecode 1000 for Bulk Filers: Reporting through Bank of America (as TFA) {1510} Typecode 1000 {2000} Amount 1,250,000.00* {3100} Sender FI (Your ABA) (Your Bank Name) {3400} Receiver Financial Institution FRBM/BK OF AMERICA {3600} Business Function Code CTR {4100} Beneficiary s FI D IRS CONTACT - JANE SMITH (404) {4200} Beneficiary Note: Fedwire requires a numeric ID Code in the first position of this field. FR-ETA ignores that first position, on Federal tax payments :ABCP: ABCPAYER: 12345:02:06: * FedLine users should enter commas and decimal points. Users of computer interface systems should consult with their software vendors. III-12 Effective July 15, 2002

22 Format for Same-Day Reversal Requests A request to reverse a transaction must be received by FR-ETA before the 5:00 p.m. ET cutoff and no later than 5 business days after the date of the original transaction. An appropriate reason must be supplied for the request. After 5 business days, the IRS must be contacted directly. For further assistance, the IRS toll-free number that FIs and/or taxpayers may call is: , Monday - Friday, 8:00 a.m. - 8:00 p.m. ET. The tables on the following pages show the required field contents for Fedwire adjustment requests, according to the timing of the request. Note to Bulk Filers: The bulk filer and its financial institution must coordinate any reversal request with its TFA. See the Treasury s Implementation Guide for EFTPS Bulk Filers. Effective July 15, 2002 III-13

23 Before 5:00 Eastern Time on same day of transaction To request reversal of: Typecode 1000 (value) Typecode 1090 (non-value) Field Name Send a: Typecode 1001 Typecode 1090 {1510} Typecode {1520} IMAD 22 characters: Input cycle date (8 char) Input Source (8 char) Input Sequence (6 char) {2000} Amount 1 Total deposit amount of original transaction 0.00 {3100) Sender ABA and Name 1 Originating ABA and Short Name {3400} Receiver ABA Number and Name 1 (Same as the original transaction) FRB MPLS FR-ETA or FRBM/BANK ONE or FRBM/BK OF AMERICA {3500} Previous Message IMAD 1 IMAD of the original transaction {3600} Business Function Code 1 SVC {9000} Service Message Taxpayer OR Bulk Filer ID Number, Name Control, Tax Information 1 Type Please reverse our tax payment of today, for $x,xxx.xx, for reason. Contact name & phone number at the FI 1 These fields appear on the FedLine Funds Service Message screen, although in different order. Other fields are appended automatically by FedLine. III-14 Effective July 15, 2002

24 On Following days (up to 5 business days after the original transaction) To request reversal of: Typecode 1000 (value) Typecode 1090 (nonvalue) Field Name Send a: Typecode 1007 Typecode 1090 {1510} Typecode {1520} IMAD 22 characters: Input cycle date (8 char) Input Source (8 char) Input Sequence (6 char) {2000} Amount 1 Total deposit amount of original transaction 0.00 {3100) Sender ABA and Name 1 Originating ABA and Short Name {3400} Receiver ABA Number and Name 1 (Same as the original transaction) FRB MPLS FR-ETA or FRBM/BANK ONE or FRBM/BK OF AMERICA {3500} Previous Message IMAD 1 IMAD of the original transaction {3600} Business Function Code 1 SVC {9000} Service Message Taxpayer OR Bulk Filer ID Number, Name Control, Tax Information 1 Type Please reverse our tax payment of date, for $x,xxx.xx, for reason. Contact name & phone number at the FI 2 Fields with this mark appear on the FedLine Funds Service Message screen, although in different order. Other fields are appended automatically by FedLine. Effective July 15, 2002 III-15

25 Example: Same-Day Reversal Request using the Fedwire Service Message Screen in FedLine Create A Message Funds Transfer MM/DD/YYYY Sender ABA: Name: Receiver ABA: Name: FRB Mpls FR-ETA Type Code: 1001 or 1090 Amount: Business Function Code: SVC Ref#: Service Message Info: Please return our wire for $x,xxx.xx, of today, for reason :Name Control: Taxpayer Name:Tax Type: Tax Period (from original wire). Attn: Contact name and phone number at FI. Ref-IMAD: IMAD of original tax payment IMAD: URC: OMAD: III-16 Effective July 15, 2002

26 Section IV: Qualified Intermediaries (Foreign Taxpayers) A foreign institution (primarily banks or investment firms) may apply to the IRS to become a Qualified Intermediary (QI) to withhold U.S. Federal taxes and assume primary responsibility for their clients to pay those U.S. Federal taxes. These taxes are typically for companies that have U.S. employee tax or for foreigners with U.S. investments that are taxed. The IRS approves the application, and assigns a 9-digit Qualified Intermediary Number -- much like the Employee Identification Number (EIN) or Taxpayer ID Number (TIN) used by U.S. companies when paying Federal taxes. The QI then enrolls in EFTPS. More complete information about EFTPS and QIs can be found in the International Electronic Federal Tax Payment Instruction Booklet, available from the Treasury in early fall of QIs may use a SWIFT message to instruct a U.S.-based financial institution to initiate a Fedwire Funds transfer for these U.S. Federal tax payments. The following pages provide guidelines on formatting a SWIFT MT100/103 message or a SWIFT MT202 message to successfully instruct a U.S.-based financial institution to initiate a Fedwire Funds transfer for these Federal tax payments. U.S.-based financial institutions should be aware that all other same-day guidelines, restrictions and deadlines apply to these transactions. Effective July 15, 2002 IV-1

27 MT100 & MT103 SWIFT Message Format Status Field/Tag Field Name Content/Options Receiver Output Header, Block 1, U.S.-based financial 11 characters BIC institution Sender Output Header, Block 2, QI/QI s financial institution 11 characters BIC BIC Mandatory 20 Transaction Reference 16x Number :20: Mandatory 32A Value Date, Currency Code, Amount :32A:021218USD555,01 Mandatory MT100: 50 Ordering Customer 4*35x :50:/Anyone Ltd MT103: 50K Ordering Customer (full name and address) :50K:/ Anyone Ltd Mandatory 56D Intermediary Institution :56D://FW Mandatory with 56D 57D FRB MPLS FR-ETA Beneficiary Institution :57D:/ IRS Jane Smith Mandatory 59 Beneficiary :59:/ :ANYO: Anyone Ltd: 09455:01:12: where = QI-EIN ANYO = Name Control Anyone Ltd = QI Name = Tax Type code 01 = Tax year 12 = Tax month Mandatory 71A Details of Charges :71A:OUR opt l party identifier 4*35x Contact Name and Telephone Number optional but encouraged opt l party identifier 4*35x Bank fees not to be deducted from this transaction IV-2 Effective July 15, 2002

28 Converting MT100 & MT103 SWIFT Messages to Fedwire Funds Format for Same-day EFTPS MT100 & MT103 SWIFT Message Fedwire Funds Format Status or Field/Tag Field Name & description Field Name Typecode 1000 (value) SWIFT Receiving Institution Transaction Amount Ordering Customer Intermediary Institution Beneficiary Type Beneficiary s Bank Beneficiary Output Header, Block 1, BIC (11 characters) :32A: 1 st subfield for Value Date (6 positions YYMMDD) 2 nd subfield for Currency Code (USD) 3 rd subfield for amount (14 positions plus decimal comma; maximum of 13 positions for Fedwire) :32A:021218USD555,01 (comma indicates decimal point in amount) {3100} Sender ABA and Name ABA and Short Name of U.S.-based financial institution {2000} Amount Total deposit amount * with commas and decimal point. The amount must be numeric, greater than $0.00 and less than $10 billion 1. The dollar sign is not required :50:Anyone Ltd {5000} Originator FR-ETA ignores this field. :56D://FW FRB MPLS FR-ETA Based on the SWIFT MT used, and fields 50/59. 57D:/ /IRS Contact Name and Telephone Number optional but encouraged :59:4*35x and opt l party identifier (Tax ID Number - QI-EIN; Name Control; Name; Tax Type; Year; Month) :59:/ :ANYO: Anyone Ltd:09455:01:12: {3400} Receiver ABA Number and Name (9 digit) {3600} Business Function FRB MPLS FR-ETA CTR Code {4100} Beneficiary FI D IRS Contact Name and Telephone Number optional but encouraged {4200} Beneficiary Note: Fedwire requires an ID Code in the first position of this field. The U.S. FI will provide the ID Code, but FR-ETA ignores that first position on Federal tax payments. 9Taxpayer ID Number:Name Control: Taxpayer Name: Tax Type:Tax Year:Tax Month: :ANYO: Anyone Ltd:09455:01:12: Sending Institution SWIFT Details of Charges Field Output Header, Block 2, BIC (11 characters) :71A:OUR This asks the SWIFT Receiver to NOT deduct any bank charges from the principle amount of the transaction. {5100} Originator s FI FR-ETA ignores this field. After July 15, 2002: {3700} Charges FR-ETA ignores this field. 1 Before July 15, 2002, the dollar limit is one cent less than $1 billion. Please note that this is a Fedwire limit. Effective July 15, 2002 IV-3

29 MT202 SWIFT Message Format: Status Field/Tag Field Name Content/Options Receiver Output Header, Block 1, U.S.-based financial 11 characters BIC institution Sender Output Header, Block 2, QI/QI s financial institution 11 characters BIC BIC Mandatory 20 Transaction Reference 16x Number :20: Mandatory 21 Related Reference 16x :21: where = QI-EIN Mandatory 32A Value Date, Currency Code, Amount :32A:021218USD555,01 Mandatory 52D Ordering Customer :52D:Anyone Ltd opt l party identifier 4*35x Mandatory 56D Intermediary Institution :56D://FW Mandatory with 56D Mandatory 57D 58 D D = Name & address, optional party identifier. FRB MPLS FR-ETA Beneficiary Institution 57D:/ IRS Jane Smith Beneficiary :58D:/ : ANYO:Anyone Ltd:09455:01:12: where = QI-EIN ANYO = Name Control Anyone Ltd = QI Name = Tax Type code 01 = Tax year 12 = Tax month Contact Name and Telephone Number optional but encouraged Use option D IV-4 Effective July 15, 2002

30 Converting MT202 SWIFT Message to Fedwire Funds Format for Same-day EFTPS MT202 SWIFT Message Fedwire Funds Format Status or Field/Tag Field Name & Description Field Name Typecode 1000 (value) SWIFT Receiving Institution Transaction Amount Output Header, Block 1, BIC (11 characters) :32A: 1 st subfield for Value Date (6 positions YYMMDD) 2 nd subfield for Currency Code (USD) 3 rd subfield for amount (14 positions plus decimal comma; maximum of 13 positions for Fedwire) {3100} Sender ABA and Name Originating ABA and Short Name {2000} Amount Total deposit amount * with commas and decimal point. The amount must be numeric, greater than $0.00 and less than $10 billion 2. The dollar sign is not required Intermediary Institution Beneficiary Type Beneficiary s Bank :32A:001218USD555,01 (comma indicates decimal point in amount) :56D://FW FRB MPLS FR-ETA Based on the SWIFT MT used. 57D:/ /IRS Contact Name and Telephone Number optional but encouraged Beneficiary :58D D = Name & address, optional party identifier. :58D:/ :ANYO: Anyone Ltd:09455:01:12: {3400} Receiver ABA Number and Name (9 digit) {3600} Business Function Code FRB MPLS FR- ETA CTR (At this time, if the U.S.- based financial institution fills this field with BTR, Fedwire will not reject the transactions) {4100} Beneficiary FI D IRS Contact Name and Telephone Number optional but encouraged {4200} Beneficiary Note: Fedwire requires an ID Code in the first position of this field. The U.S. FI will provide the ID Code, but FR-ETA ignores that first position on Federal tax payments. 9Taxpayer ID Number:Name Control: Taxpayer Name: Tax Type:Tax Year:Tax Month: :ANYO:Anyone Ltd:09455:01:12: 2 Before July 15, 2002, the dollar limit is one cent than less than $1 billion. This is a Fedwire limit. Effective July 15, 2002 IV-5

31 Section V: Treasury Tax & Loan (TT&L) General Information To facilitate processing of electronic Federal tax deposits through the Federal Reserve's TT&L system, the FR-ETA system sends the total amount of all electronic tax deposits reported by each FI to the TIP application. Note: Taxpayer detail is not reported to TIP. FR-ETA information is reported to the TIP application (Treasury Investment Program) hourly, beginning at 9:00 a.m. ET, until the cutoff time of 5:00 p.m. ET. TIP posts this information hourly, by the half-hour. The FI can use FedLine Acknowledgements, and inquiries into its own TIP account or Reserve account to monitor these postings. A correspondent can use notification of tax payments from its respondents and FedLine Account Services inquiries to monitor its Reserve account for these postings. TIP processes tax deposits according to the FI's TT&L classification, as follows: Collector Banks and Non-TT& L Banks: Value Fedwire transactions (Typecode 1000) settle immediately in Funds, resulting in a debit to the FI's Reserve account and a credit to the Treasury. For Non-value Fedwire (Typecode 1090), TIP debits the FI's Reserve or designated correspondent account and credits the Treasury after the close of Fedwire 1, at the end of the day. Retainer and Investor Banks: Value Fedwire transactions (Typecode 1000) settle immediately in Funds, resulting in a debit to the FI's Reserve account and a credit to the Treasury. The information is passed to TIP. Assuming the FI has sufficient capacity, TIP will increase the balance in the FI s TT&L Main account and credit the FI s own or its correspondent s Reserve account (debiting the Treasury) as applicable. For Non-value Fedwire (Typecode 1090), TIP posts the transaction to the FI's own or the correspondent s TT&L Main account, assuming the FI has sufficient capacity. No accounting entries are created unless required by normal TT&L processing. 1 TIP passes the non-value transaction information to accounting on an hourly basis. However, for purposes of measuring daylight overdrafts in the FI's Reserve Bank account, the non-value transaction posts after the close of Fedwire. Effective July 15, 2002 V-1

32 Posting Information Payment Method Fedwire Value (Typecode 1000) Action Accounting Entries Posting 1. The FI sends the tax payment message to FR-ETA no later than 5:00 p.m. ET on the tax due date. (Payments received after the cutoff are rejected and not processed.) 1. Funds debits the FI s Federal Reserve account and credits the Treasury Time Immediately 2. FR-ETA sends the information to TIP hourly, beginning at 9:00 a.m. ET 3. TIP processes the information. 2. None 3. Collector or non-tt&l FI: No accounting entries Retainer or Investor FI: TIP credits the transaction to the FI's own or the respondent s TT&L account and debits the Treasury (as applicable) Hourly, on the half-hour, beginning at 9:30 a.m. ET Fedwire Non-Value (Typecode 1090) 1. The FI sends the tax payment message to FR-ETA no later than 5:00 p.m. ET on the tax due date. (Payments received after the cutoff are rejected and not processed.) 2. FR-ETA sends the information to TIP hourly, beginning at 9:00 a.m. ET. 1. None 2. None 3. TIP processes the information. 3. Collector or non-tt&l FI: TIP debits the FI s or TT&L correspondent s Reserve account Retainer or Investor institution: No entry to Reserve account; TIP Main Account balance increases by amount of tax payment (as applicable) After the close of Fedwire, at the end of the day. 2 NOTE: Normal TT&L processing, including Treasury calls, Capacity, and Balance Limits, will affect the posting of investment credits to a TT&L Main account, for Retainer and Investor institutions. For more details, please see the Federal Reserve's "Reference Guide for the TT&L Enhancements". 2 TIP passes the non-value transaction information to accounting on an hourly basis. However, for purposes of measuring daylight overdrafts in the FI's Reserve Bank account, the non-value transaction posts after the close of Fedwire. V-2 Effective July 15, 2002

33 Section VI: Questions and Answers What is the deadline for same-day FR-ETA tax payments? FR-ETA must receive same-day payments by 5:00 p.m. ET. The financial institution may set an earlier deadline for its customer (the taxpayer) to allow for transaction processing time. Late payments will be rejected and may be subject to IRS penalty. If I send a tax payment after the 5:00 p.m. ET deadline, will the payment be held in queue until the ABA reopens and process at that time? No. FR-ETA does not have this capability. If the cutoff time has passed, a new payment must be sent the following business day before the cutoff. Can electronic Federal tax payments, made via same-day payment methods, be warehoused -- that is, created and sent before the payment due date? No. If the tax liability is known at least one day in advance of the tax due date, the payment should be made via the future-day methods (ACH debit or ACH credit origination through the taxpayer's financial institution). Same-day payments can be used as a backup (if the ACH deadline is missed) or in those cases where the business taxpayer cannot report its tax liability until the due date. What wire typecodes can be used to send in same-day Federal tax payments? A wire with Typecode 1000 or 1090 can be used to submit same-day Federal tax payments. A Typecode 1000 wire is an immediate transfer of funds; the charge (debit) will appear on the financial institution s Federal Reserve Statement in the Wire Transfer section. A Typecode 1090 wire (which requires an IRS product code) will become part of the financial institution s Treasury Tax & Loan account balance through TIP. The charge will appear on the financial institution s statement at the end of the business day, as appropriate. What are the considerations for using non-value Fedwire (Typecode 1090) versus value Fedwire (Typecode 1000) tax payments? Value Fedwire (Typecode 1000) tax payments settle immediately through Funds resulting in a debit to the FI s reserve account and a credit to the Treasury. Tax payment information is passed by FR-ETA to TIP on an hourly basis, beginning at 9:00 a.m. ET, until the cutoff time of 5:00 p.m. ET. For Retainer and Investor financial institutions with capacity, TIP will reinvest the funds by increasing the TT&L Main account and crediting the FI s own or its correspondent s Reserve account (debiting the Treasury). The FI s TT&L account balance will be increased, as applicable, hourly, on the half-hour, beginning at approximately 9:30 a.m. ET. Example: At 8:50 a.m. ET, a Retainer Institution sends $1,000 via a Typecode 1000 wire to FR-ETA. Funds immediately debits the FI's Reserve account and credits the Treasury. At 9:00 a.m. ET, FR-ETA passes the transaction information to TIP. At approximately 9:30 a.m. ET, TIP posts the investment offset - resulting in a credit to the FI's Reserve account and a debit to the Treasury. Effective July 15, 2002 VI-1

34 Non-value Fedwire (Typecode 1090) tax payment information is passed by FR-ETA to TIP on an hourly basis, beginning at 9:00 a.m. ET, until the cutoff time of 5:00 p.m. ET. TIP will settle the tax payments hourly, by the half-hour, beginning at 9:30 a.m. ET. For Retainer and Investor financial institutions, all or a portion of the dollar amount of the non-value tax payment is credited to the institution s TT&L Main account, if capacity exists. Financial institutions with interfaces between their funds transfer and internal customer accounting systems may need to modify the interface to allow the internal accounting systems to debit customer accounts for non-value tax payments. Example: At 2:30 p.m. ET, a TT&L Collector institution sends $1,000 via a Typecode 1090 wire to FR-ETA. At 3:00 p.m. ET, FR-ETA passes the transaction information to TIP. At 6:30 p.m. ET, TIP posts the transaction - resulting in a debit to the FI's Reserve account and a credit to the Treasury. Where is the money from my returned 1090? If the original payment was sent as a Typecode 1090, FR-ETA will return the payment as a Typecode TT&L will credit the FI s reserve account and debit the Treasury. FIs may need to make some internal accounting entries to return the money back to the taxpayer s account. How can a taxpayer or financial institution confirm receipt of a same-day Federal tax payment? If confirming receipt on the same day the tax payment was made, contact the Customer Service Unit at If confirming receipt on subsequent days, contact the appropriate EFTPS Customer Service Helpline (see Section VIII) or visit EFTPS-Online ( What type of acknowledgment will taxpayers receive in case it is necessary to trace the payment or confirm that the payment has been made? IRS requires the EFT number to research tax payments and/or confirm that a tax payment has posted to the IRS accounting system. In general, the taxpayer may obtain the EFT number from the EFTPS Customer Service Helpline or through EFTPS On-line the day after the payment date by providing the TIN and as much transaction information as possible, including the payment date, payment amount, and tax type. If a business taxpayer needs to trace a Fedwire same-day tax payment on the origination date, the taxpayer must contact their financial institution for assistance. The financial institution: 1. Should record the Fedwire IMAD (Input Message Accountability Data) number from the tax payment, at the time the payment is originated. 2. Contact the FR-ETA Customer Service Unit to obtain the EFT number for distribution to the taxpayer. VI-2 Effective July 15, 2002