Attached files

file filename
10-K/A - 10-K/A - OFFICIAL PAYMENTS HOLDINGS, INC.w78690e10vkza.htm
EX-31.7 - EX-31.7 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv31w7.htm
EX-31.8 - EX-31.8 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv31w8.htm
EX-10.40 - EX-10.40 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv10w40.htm
EX-10.44 - EX-10.44 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv10w44.htm
EX-10.45 - EX-10.45 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv10w45.htm
EX-10.42 - EX-10.42 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv10w42.htm
EX-10.43 - EX-10.43 - OFFICIAL PAYMENTS HOLDINGS, INC.w78690exv10w43.htm
Exhibit 10.41
(GRAPHIC)
Control No. 1505-0080 CONTRACT ID CODE PAGE OF PAGES AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1 48 2. AMENDMENT/MODIFICATION NO. 3. EFFECTIVE. DATE 0001 See Block 16C 4. REQIIISITION/PIIRCHASE REQ. NO. 5. PROJECT NO (If applicable) W-6-W2-03-TP-R03 005 6 ISSUED) BY CODE IRS0088 Internal Revenue Service 6009 Oxon Hill Road, Suite 500 Oxon Hill, MD 20745 7. ADMINISTERED BY (If other than Item 6) CODE See Item 6 8. NAME AND ADDRESS OF CONTRACTOR ‘No. Street. county State and ZIP: Code) OFFICIAL PAYMENTS CORPORATION 00051397 2333 SAN RAMON VALLEY BOULEVARD STE# 450 SAN RAMON, CA 945834456 OFFICIAL PAYMENTS CORPORATION 10A. AMENDMENT OF SOLICITATION NO 10B DATED (SEE ITEM II) x 10A. MODIFICATION OF CONTRACT/OROISR NI) TIRNO-09-C-tJOOl 9 10B. DATFI) (SEE ITE3I 13,1 04/23/2009 CODE            FACULTY CODE []. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers []is extended, [] is not extended Offers must acknowledge receipt of Ibis amendment prior 10 the hour and dale specified in the solicitation or as intended, by one of the following methods: (a) By completing Items 8 md 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or(c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATEI) FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATA SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may he made by telegram or letter, provided each Telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and damn specified. 12. ACCOUNTING AND APPROPRTION DATA f required) None Net Increase: $0.00 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED EN ITEM 14. [X] A. THISC CHANGE ORDER ISISSUED PURSUANT TO (Specify authority/ THE HANGES SFT FOR 14 ARE MADE IN THE CONTRACT ORDRER NO IN ITEM I0A B THE AISOVE NUMBER CONTRACT ORDER IS MODIFIED TO REFLECT ADMINISTRATIVE CHANGES (SUCH AS CHANGES IN PAYING OFFER ,ETC) SET FORTH IN ITIM 14’)PURSUANT TO THE AUTHORITY OF FAR 43.103(B) C.THE SUPPLEMENTAL AGREEMENT IS ENTERED 1410 PIIRSIJANE TO AIITIIORI1 V OF D OTHER Specify type of modification and authority) Mutual Agreement Between The Parties F. IMPORTANT: Contractor is not, E is required to sign this document and return copies to the issuing office. 4. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF.section headings. including         ,solicitation /contract subject matter where feasible.) The purpose of this Modification is as follows: l6A. NAME AND TITI.I/ OF CONTRACTING OFFICFR (Type or print) DIANNE L GOOSBY 202-283-1207 / CONTRACT SPECIALIST STANDARD FORM 30 (REV. 10-83) Except at provided herein, all Icons and conditions of the document referemmced in them 9A or 10A, as heretofore changed. renmain unchanged and in fall force and effect. I5A. NAME AND TITlE OF SIGNER (Type or print) 16B NAME AND TITLE OF CONTRACTING OFFER (type or print) DIANNEL L GOOSBY 202-283-1207/ CONTRACT SPECILIST 15B CONTRACTOR/OFFICER 15C DATED SIGNED 10/27/09 16B. UNITED STATES OF AMERICA BY (signature of contracting officer) 16C. DATED SIGNED 10-3—2009 30-105 Computer Generated STANDARD FORM 30 (REV.10-83) Prescribed by GSA FAR (48 CFR) 53.243


 

1.   The convenience fee for Option Years One (1) through four (4) are changed From 2.39% to 2.35% (CLINS — Convenience Fee — 1026, 2026, 3026, and 4026) with a $3.95 minimum fee.
 
2.   Add CLINS 1027, 2027, 3027, and 4027 entitled: Debit Card Flat Fee — fixed with a price of $3.95.
 
3.   Add under C.10 Schedule of Performance, to read as follows:
 
    IRS Final Sign Off on Functional Requirements/User Interface Documentation — 08/21/2009.
 
4.   The 9th Contractor’s event to read as follows: Deliver Final Test Plans And Test Cases — 08/31/2009.
 
5.   The 10th Contractor’s event to read as follows: Begin internal application Testing — 09/07/2009.
 
6.   Section 2.3 is hereby changed as follows:
 
    Natalie Boston
Internal Revenue Service
SE:W:CAS:SP:ATP:EP
5000 Ellin Road C8-437
New Carrollton, MD 20706
 
7.   Section C.1.5 — Contract Requirements are hereby included in the contract.
 
8.   Section 2.3 is hereby changed effective 01/01/2010 as follows:

Steve Greenspan will be the Project Manger.
 
9.   All other terms and conditions remain unchanged.

Page - 2


 

               
TABLE OF CONTENTS PAGE NOS.  
1. SF 1449 FORM     1 - 2  
               
2. ATTACHMENT 1, SUPPLIES OR SERVICES AND PRICES/COSTS     5 - 8  
  2.1   NO-COST, FIXED CONVENIENCE FEE RATE CONTRACT        
            5  
  2.2   CONTRACT PRICING (CONVENIENCE FEE)     5  
      2.2.1 BASE PERIOD     5  
      2.2.2 OPTION PERIOD 1     6  
      2.2.3 OPTION PERIOD 2     6  
      2.2.4 OPTION PERIOD 3     7  
      2.2.5 OPTION PERIOD 4     8  
               
  2.3   AUTHORITY — CONTRACTING OFFICER, CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE AND CONTRACTOR’S PROJECT MANAGER      
               
  2.4   PERIOD OF PERFORMANCE     10  
               
  2.5   PREPARATION FOR DELIVERY     10  
               
  2.6   MARKING OF SHIPMENTS     10  
               
3. CLAUSES     11 - 24  
                 
    FAR 52.252-2 CLAUSES INCORPORTATED BY REFERENCE    
 
      52.203-6   Restrictions on Subcontractor Sales to the Government (ALT 1) (FEB 2007)  
 
      52.204-4   Printed or Copied Double-Sided on On Recycled Paper (AUG 2000)  
 
      52.212-4   Contract Terms and Conditions (FEB 2007)  
 
      52.233-4   Applicable Law for Breach of Contract Claim (OCT 2004)  
    FAR 52.212-5 CONTRACT TERMS & CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE    

Page - 3


 

           
TABLE OF CONTENTS   PAGE NOS.   
   
ORDERS — COMMERCIAL ITEMS
     
 
  FAR 52.216-1 CONTRACT TYPE      
 
  FAR 52.217-8 OPTION TO EXTEND SERVICES      
 
  FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT      
 
  FAR 52.237-3 CONTINUITY OF SERVICES      
 
  FAR 52.227-19 COMMERCIAL COMPUTER SOFTWARE — RESTRICTED RIGHTS      
 
  FAR 52.232-33 PAYMENT BY ELECTRONIC FUNDS TRANSFER — CENTRAL CONTRACTOR REGISTRATION      
 
  1052.204-9003 INFORMATION SECURITY TRAINING REQUIREMENT      
 
  1052.224-9000a DISCLOSURE OF INFORMATION-SAFEGUARDS      
 
  1052.224-9000(d) DISCLOSURE OF “SENSITIVE BUT UNCLASSIFIED” INFORMATION SAFEGUARDS      
 
  1052.224-9001(a) DISCLOSURE OF INFORMATION — CRIMINAL/CIVIL SANCTIONS      
 
  1052.224-9001(b) DISCLOSURE OF INFORMATION — SENSITIVE BUT UNCLASSIFIED USE ONLY      
 
  1052-204-9003 INFORMATION SECURITY TRAINING REQUIREMENTS      
 
  1052.224-9002 DISCLOSURE OF INFORMATION — INSPECTION      
             
ATTACHMENTS        
 
 
  1. SUPPLIES/SERVICES AND PRICES/COSTS, ATTACHMENT 1 (SEE SECTION 2)     5 - 8  
 
 
  2. SECTION C, ATTACHMENT 2     25 - 47  
 
 
  3. APPENDIX A through C, ATTACHMENT 3     48  

Page - 4


 

ATTACHMENT 1
2. SUPPLIES OR SERVICES AND PRICES/COSTS
2.1 NO COST, FIXED CONVENIENCE FEE RATE
This is a no cost to the Government, Fixed Convenience Fee Rate Contract. All fees authorized for use under the terms of this contract will not be paid by the Government.
2.2 CONTRACT PRICING (CONVENIENCE FEE)
2.2.1 BASE PERIOD – (April 2, 2009 through December 31, 2009)
Note: The Base Year is the transition period (April 2, 2009 through December 31, 2009).
         
CLIN DESCRIPTION   PRICE
0001 Electronic Payments
  $ 0  
0002 Monthly Development Status Reports
  $ 0  
0003 Daily Transaction Reports
  $ 0  
0004 Monthly Transaction Reports
  $ 0  
0005 Chargeback Reports
  $ 0  
0006 Exception Handling Reports
  $ 0  
0007 Ad Hoc Reports
  $ 0  
0008 Findings Reports
  $ 0  
0009 Marketing Reports
  $ 0  
0010 Capacity Analysis
  $ 0  
0011 System Security Plan
  $ 0  
0012 Security Features Users Guide
  $ 0  
0013 Configuration Management Plan
  $ 0  
0014 Risk Assessment Plan
  $ 0  
0015 Disaster Recovery Plan
  $ 0  
0016 Network Design and Architecture Schematic
  $ 0  
0017 Trusted Facilities Manual
  $ 0  
0018 Process and Data Flow Schematic
  $ 0  
0019 Funds Settlement Timeline
  $ 0  
0020 System Development Life Cycle Plan
  $ 0  
0021 Test Plans, Test Cases and Test Results
  $ 0  
0022 Functional Requirements/User Interface Documentation
  $ 0  
0023 Scripts/Call Flows/Screen Shots/Business Rules
  $ 0  
0024 Work Breakdown Structure/Schedule
  $ 0  
0025 Incident Reports
  $ 0  
0026 Convenience Fee — Fixed
  $ 0  
 
TOTAL NO COST, FIXED PRICE
  $ 0  
 
     

Page - 5


 

2.2.2 OPTION 1 — (January 1, 2010 through December 31, 2010 )
         
CLIN DESCRIPTION   PRICE
1001 Electronic Payments
  $ 0  
1002 Monthly Development Status Reports
  $ 0  
1003 Daily Transaction Reports
  $ 0  
1004 Monthly Transaction Reports
  $ 0  
1005 Chargeback Reports
  $ 0  
1006 Exception Handling Reports
  $ 0  
1007 Ad Hoc Reports
  $ 0  
1008 Findings Reports
  $ 0  
1009 Marketing Reports
  $ 0  
1010 1001 Capacity Analysis
  $ 0  
1011 System Security Plan
  $ 0  
1012 Security Features Users Guide
  $ 0  
1013 Configuration Management Plan
  $ 0  
1014 Risk Assessment Plan
  $ 0  
1015 Disaster Recovery Plan
  $ 0  
1016 Network Design and Architecture Schematic
  $ 0  
1017 Trusted Facilities Manual
  $ 0  
1018 Process and Data Flow Schematic
  $ 0  
1019 Funds Settlement Timeline
  $ 0  
1020 System Development Life Cycle Plan
  $ 0  
1021 Test Plans, Test Cases and Test Results
  $ 0  
1022 Functional Requirements/User Interface Documentation
  $ 0  
1023 Scripts/Call Flows/Screen Shots/Business Rules
  $ 0  
1024 Work Breakdown Structure/Schedule
  $ 0  
1025 Incident Reports
  $ 0  
1026 Convenience Fee — Fixed
    2.35 %*
*(There is a $3.95 minimum fee)
1027 Debit Card Flat Fee — Fixed
  $ 3.95  
 
TOTAL FIXED PRICE
  $ 0  
 
     
2.2.3 OPTION 2 — (January 1, 2011 through December 31, 2011)
         
CLIN DESCRIPTION   PRICE
2001 Electronic Payments
  $ 0  
2002 Monthly Development Status Reports
  $ 0  
2003 Daily Transaction Reports
  $ 0  
2004 Monthly Transaction Reports
  $ 0  
2005 Chargeback Reports
  $ 0  
2006 Exception Handling Reports
  $ 0  

Page - 6


 

         
2007 Ad Hoc Reports
  $ 0  
2008 Findings Reports
  $ 0  
2009 Marketing Reports
  $ 0  
2010 Capacity Analysis
  $ 0  
2011 System Security Plan
  $ 0  
2012 Security Features Users Guide
  $ 0  
2013 Configuration Management Plan
  $ 0  
2014 Risk Assessment Plan
  $ 0  
2015 Disaster Recovery Plan
  $ 0  
2016 Network Design and Architecture Schematic
  $ 0  
2017 Trusted Facilities Manual
  $ 0  
2018 Process and Data Flow Schematic
  $ 0  
2019 Funds Settlement Timeline
  $ 0  
2020 System Development Life Cycle Plan
  $ 0  
2021 Test Plans, Test Cases and Test Results
  $ 0  
2022 Functional Requirements/User Interface Documentation
  $ 0  
2023 Scripts/Call Flows/Screen Shots/Business Rules
  $ 0  
2024 Work Breakdown Structure/Schedule
  $ 0  
2025 Incident Reports
  $ 0  
2026 Convenience Fee — Fixed
    2.35 %*
*(There is a $3.95 minimum fee)
2027 Debit Card Flat Fee — Fixed
  $ 3.95  
 
TOTAL FIRM FIXED PRICE
  $ 0  
 
     
2.2.4 OPTION 3 — (January 1, 2012 through December 31, 2012)
         
CLIN DESCRIPTION   PRICE
3001 Electronic Payments
  $ 0  
3002 Monthly Development Status Reports
  $ 0  
3003 Daily Transaction Reports
  $ 0  
3004 Monthly Transaction Reports
  $ 0  
3005 Chargeback Reports
  $ 0  
3006 Exception Handling Reports
  $ 0  
3007 Ad Hoc Reports
  $ 0  
3008 Findings Reports
  $ 0  
3009 Marketing Reports
  $ 0  
3010 Capacity Analysis
  $ 0  
3011 System Security Plan
  $ 0  
3012 Security Features Users Guide
  $ 0  
3013 Configuration Management Plan
  $ 0  
3014 Risk Assessment Plan
  $ 0  
3015 Disaster Recovery Plan
  $ 0  
3016 Network Design and Architecture Schematic
  $ 0  
3017 Trusted Facilities Manual
  $ 0  
3018 Process and Data Flow Schematic
  $ 0  
3019 Funds Settlement Timeline
  $ 0  
3020 System Development Life Cycle Plan
  $ 0  

Page - 7


 

         
3021 Test Plans, Test Cases and Test Results
  $ 0  
3022 Functional Requirements/User Interface Documentation
  $ 0  
3023 Scripts/Call Flows/Screen Shots/Business Rules
  $ 0  
3024 Work Breakdown Structure/Schedule
  $ 0  
3025 Incident Reports
  $ 0  
3026 Convenience Fee — Fixed
    2.35 %*
*(There is a $3.95 minimum fee)
3027 Debit Card Flat Fee — Fixed
  $ 3.95  
 
TOTAL FIXED PRICE
  $ 0  
 
     
2.2.5 OPTION 4 — (January 1, 2013 through December 31, 2013)
         
CLIN DESCRIPTION   PRICE
4001 Electronic Payments
  $ 0  
4002 Monthly Development Status Reports
  $ 0  
4003 Daily Transaction Reports
  $ 0  
4004 Monthly Transaction Reports
  $ 0  
4005 Chargeback Reports
  $ 0  
4006 Exception Handling Reports
  $ 0  
4007 Ad Hoc Reports
  $ 0  
4008 Findings Reports
  $ 0  
4009 Marketing Reports
  $ 0  
4010 Capacity Analysis
  $ 0  
4011 System Security Plan
  $ 0  
4012 Security Features Users Guide
  $ 0  
4013 Configuration Management Plan
  $ 0  
4014 Risk Assessment Plan
  $ 0  
4015 Disaster Recovery Plan
  $ 0  
4016 Network Design and Architecture Schematic
  $ 0  
4017 Trusted Facilities Manual
  $ 0  
4018 Process and Data Flow Schematic
  $ 0  
4019 Funds Settlement Timeline
  $ 0  
4020 System Development Life Cycle Plan
  $ 0  
4021 Test Plans, Test Cases and Test Results
  $ 0  
4022 Functional Requirements/User Interface Documentation
  $ 0  
4023 Scripts/Call Flows/Screen Shots/Business Rules
  $ 0  
4024 Work Breakdown Structure/Schedule
  $ 0  
4025 Incident Reports
  $ 0  
4026 Convenience Fee — Fixed
    2.35 %
*(There is a $3.95 minimum fee)
4027 Debit Card Flat Fee — Fixed
  $ 3.95  
 
TOTAL FIXED PRICE
  $ 0  
 
     

Page - 8


 

2.3 AUTHORITY – CONTRACTING OFFICER, CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE AND CONTRACTOR’S PROJECT MANAGER
(a) The Contracting Officer for administration of this contract is:
Dianne L. Goosby
Internal Revenue Service
6009 Oxon Hill Road, Room 500 Oxon
Hill, Maryland 20745
The telephone number for the Contracting Officer is: (202) 283-1207.
The Contracting Officer, in accordance with Subpart 1.6 of the Federal Acquisition Regulation, is the only person authorized to make or approve any changes in any of the requirements of this contract, and withstanding any clauses contained elsewhere in this contract, the said authority remains solely with the Contracting Officer. In the event the Contractor makes any changes at the direction of any person other than the Contracting Officer, the changes will be considered to have been made without authority an no adjustment will be made in the contract price to cover any increase in cost incurred as a result thereof.
(b) The Contracting Officer’s Technical Representative (COTR) for this contract is:
Natalie Boston
Internal Revenue Service
SE:W:CAS:SP:ATP:EP
5000 Ellin Road C8-437
New Carrollton, MD 20706
The telephone number for the COTR is: (202) 283-0764.
The COTR will represent the Contracting Officer in the administration of technical details within the scope of this contract. The COTR is also responsible for the final inspection and acceptance of all reports, and such other responsibilities as may be specified in the contract. The COTR is not otherwise authorized to make any representations or commitments of any kind on behalf of the Contracting Officer or the Government. The COTR does not have authority to alter the Contractor’s obligations or to change the contract specifications, price, terms or conditions. If, as a result of technical discussions, it is desirable to modify contract obligations or the statement of work, changes will be issued in writing and signed by the Contracting officer.
The COTR assignment for this contract may be change at any time by the Government without prior notice to the Contractor. The Contractor will be notified of the change.
(c) The Contractor’s designated Project Manager for this contract is:
Steve Johnson
The telephone number for the Project Manager is (925) 855-5040.

Page - 9


 

The Contractor shall provide a Project Manager for this contract who shall have the authority to make any no-cost contract technical decisions, or special arrangement regarding this contract. The Project Manager shall be responsible for the overall management and coordination of this contract and shall act as the central point of contact with the Government. The Project Manager shall have full authority to act for the Contractor in the performance of the required services. The Project Manager, or a designated representative, shall meet with the COTR to discuss problem areas as they occur. The Project Manager, or designated representative shall respond within four hours after notification of the existence of a problem. The Project Manager shall be able to fluently read, write, and speak the English language.
2.4 PERIOD OF PERFORMANCE
The period of performance shall commence on April 2, 2009 through December 31, 2009, with four (4) one year option periods, as follows:
             
Base Period:
  April 2, 2009   through   December 31, 2009
 
           
Option Period I :
  January 1, 2010   through   December 31, 2010
 
           
Option Period II:
  January 1, 2011   through   December 31, 2011
 
           
Option Period III:
  January 1, 2012   through   December 31, 2012
 
           
Option Period IV:
  January 1, 2013   through   December 31, 2013
2.5 PREPARATION FOR DELIVERY
(a) The Contractor’s best commercial practice is required for delivery to all delivery points at no cost to the Government. The use of asbestos, excelsior, or shredded paper (all types including waxed paper, computer paper, and similar hydroscopic or non-neutral material) is prohibited.
(b) The Contractor shall notify the Point of Contact at each delivery point at lease five business days prior to the anticipated date of delivery.
2.6 MARKING OF SHIPMENTS
(a) The Contractor shall mark all shipments in accordance with best commercial practices at no cost to the Government.
(b) The Contractor shall mark each container with the following Information:
  (1)   IRS Contract Number and Title,
 
  (2)   Delivery Address,
 
  (3)   Point of Contact (including Name and Telephone Number) (see Delivery Order Block No. 6)
 
  (4)   Sequential container Contents.
 
  (5)   Identification of Container Contents.

Page - 10


 

3. CLAUSES
FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)
This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text may be accessed electronically at this address:
http://www.acquisition.gov/comp/far/current/html/52_301Matrix.html
         
Clause        
Number   Title   Date
52.203-6
  Restrictions on Subcontractor Sales to the Government (ALT 1)   (FEB 2007)
 
      (OCT 1995)
52.204-4
  Printed or Copied Double-Sided on   (AUG 2000)
 
  On Recycled Paper    
52.212-4
  Contract Terms and Conditions   (FEB 2007)
52.233-4
  Applicable Law for Breach of Contract Claim   (OCT 2004)
 
       
FAR 52.212-5 Contract Terms And Conditions Required To Implement Statutes Or Executive Orders—Commercial Items (Sept 2008)
     (a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:
          (1) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).
          (2) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Pub. L. 108-77, 108-78)
     (b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:
[Contracting Officer check as appropriate.]
          þ (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Sept 2006), with Alternate I (Oct 1995) (41 U.S.C. 253g and 10 U.S.C. 2402).
          o (2) 52.219-3, Notice of Total HUBZone Set-Aside (Jan 1999) (15 U.S.C. 657a).
          þ (3) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (JULY 2005) (if the offeror elects to waive the preference, it shall so indicate in its offer) (15 U.S.C. 657a).
          o (4) [Reserved]

Page - 11


 

          o (5)(i) 52.219-6, Notice of Total Small Business Set-Aside (June 2003) (15 U.S.C. 644).
               o (ii) Alternate I (Oct 1995) of 52.219-6.
               o (iii) Alternate II (Mar 2004) of 52.219-6.
          o (6)(i) 52.219-7, Notice of Partial Small Business Set-Aside (June 2003) (15 U.S.C. 644).
               o (ii) Alternate I (Oct 1995) of 52.219-7.
               o (iii) Alternate II (Mar 2004) of 52.219-7.
          o (7) 52.219-8, Utilization of Small Business Concerns (May 2004) (15 U.S.C. 637(d)(2) and (3)).
          o (8)(i) 52.219-9, Small Business Subcontracting Plan (Apr 2008) (15 U.S.C. 637(d)(4)).
               o (ii) Alternate I (Oct 2001) of 52.219-9.
               o (iii) Alternate II (Oct 2001) of 52.219-9.
          o (9) 52.219-14, Limitations on Subcontracting (Dec 1996) (15 U.S.C. 637(a)(14)).
          o (10) 52.219-16, Liquidated Damages—Subcontracting Plan (Jan 1999) (15 U.S.C. 637(d)(4)(F)(i)).
          o (11)(i) 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns (SEPT 2005) (10 U.S.C. 2323) (if the offeror elects to waive the adjustment, it shall so indicate in its offer).
               o (ii) Alternate I (June 2003) of 52.219-23.
          o (12) 52.219-25, Small Disadvantaged Business Participation Program—Disadvantaged Status and Reporting (Apr 2008) (Pub. L. 103-355, section 7102, and 10 U.S.C. 2323).
          o (13) 52.219-26, Small Disadvantaged Business Participation Program—Incentive Subcontracting (Oct 2000) (Pub. L. 103-355, section 7102, and 10 U.S.C. 2323).
          o (14) 52.219-27, Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside (May 2004) (15 U.S.C. 657 f).
          o (15) 52.219-28, Post Award Small Business Program Rerepresentation (June 2007) (15 U.S.C. 632(a)(2)).
          o (16) 52.222-3, Convict Labor (June 2003) (E.O. 11755).
          þ (17) 52.222-19, Child Labor — Cooperation with Authorities and Remedies (Feb 2008) (E.O. 13126).
          o (18) 52.222-21, Prohibition of Segregated Facilities (Feb 1999).
          þ (19) 52.222-26, Equal Opportunity (Mar 2007) (E.O. 11246).
          þ (20) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sept 2006) (38 U.S.C. 4212).
          þ (21) 52.222-36, Affirmative Action for Workers with Disabilities (Jun 1998) (29 U.S.C. 793).
          þ (22) 52.222-37, Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sept 2006) (38 U.S.C. 4212).

Page - 12


 

          o (23) 52.222-39, Notification of Employee Rights Concerning Payment of Union Dues or Fees (Dec 2004) (E.O. 13201).
          o (24)(i) 52.222-50, Combating Trafficking in Persons (Aug 2007) (Applies to all contracts).
               o (ii) Alternate I (Aug 2007) of 52.222-50.
          o (25)(i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items (May 2008) (42 U.S.C. 6962(c)(3)(A)(ii)).
               o (ii) Alternate I (May 2008) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)).
          o (26) 52.223-15, Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 U.S.C. 8259b).
          o (27)(i) 52.223-16, IEEE 1680 Standard for the Environmental Assessment of Personal Computer Products (DEC 2007) (E.O. 13423).
               o (ii) Alternate I (DEC 2007) of 52.223-16.
          o (28) 52.225-1, Buy American Act—Supplies (June 2003) (41 U.S.C. 10a-10d).
          o (29)(i) 52.225-3, Buy American Act—Free Trade Agreements—Israeli Trade Act (Aug 2007) (41 U.S.C. 10a-10d, 19 U.S.C. 3301 note, 19 U.S.C. 2112 note, Pub. L 108-77, 108-78, 108-286, 109-53 and 109-169).
               o (ii) Alternate I (Jan 2004) of 52.225-3.
               o (iii) Alternate II (Jan 2004) of 52.225-3.
          o (30) 52.225-5, Trade Agreements (NOV 2007) (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 note).
          o (31) 52.225-13, Restrictions on Certain Foreign Purchases (June 2008) (E.O.’s proclamations, and statutes administered by the Office of Foreign Assets Control of the Department of the Treasury).
          o (32) 52.226-4, Notice of Disaster or Emergency Area Set-Aside (Nov 2007) (42 U.S.C. 5150).
          o (33) 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area (Nov 2007) (42 U.S.C. 5150).
          þ (34) 52.232-29, Terms for Financing of Purchases of Commercial Items (Feb 2002) (41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
          o (35) 52.232-30, Installment Payments for Commercial Items (Oct 1995) (41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
          þ (36) 52.232-33, Payment by Electronic Funds Transfer—Central Contractor Registration (Oct 2003) (31 U.S.C. 3332).
          o (37) 52.232-34, Payment by Electronic Funds Transfer—Other than Central Contractor Registration (May 1999) (31 U.S.C. 3332).
          þ (38) 52.232-36, Payment by Third Party (May 1999) (31 U.S.C. 3332).
          þ (39) 52.239-1, Privacy or Security Safeguards (Aug 1996) (5 U.S.C. 552a).
          o (40)(i) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006) (46 U.S.C. Appx. 1241(b) and 10 U.S.C. 2631).
               o (ii) Alternate I (Apr 2003) of 52.247-64.

Page - 13


 

     (c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to commercial services, that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:
     [Contracting Officer check as appropriate.]
          o (1) 52.222-41, Service Contract Act of 1965 (Nov 2007) (41 U.S.C. 351, et seq.).
          o (2) 52.222-42, Statement of Equivalent Rates for Federal Hires (May 1989) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
          o (3) 52.222-43, Fair Labor Standards Act and Service Contract Act —Price Adjustment (Multiple Year and Option Contracts) (Nov 2006) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
          o (4) 52.222-44, Fair Labor Standards Act and Service Contract Act—Price Adjustment (Feb 2002) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
          o (5) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment—Requirements (Nov 2007) (41 U.S.C. 351, et seq.).
          o (6) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services—Requirements (Nov 2007) (41 U.S.C. 351, et seq.).
          o (7) 52.237-11, Accepting and Dispensing of $1 Coin (Sept 2008) (31 U.S.C. 5112(p)(1)).
     (d) Comptroller General Examination of Record. The Contractor shall comply with the provisions of this paragraph (d) if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and Records—Negotiation.
          (1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall have access to and right to examine any of the Contractor’s directly pertinent records involving transactions related to this contract.
          (2) The Contractor shall make available at its offices at all reasonable times the records, materials, and other evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If this contract is completely or partially terminated, the records relating to the work terminated shall be made available for 3 years after any resulting final termination settelement. Records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating to this contract shall be made available until such appeals, litigation, or claims are finally resolved.
          (3) As used in this clause, records include books, documents, accounting procedures and practices, and other data, regardless of type and regardless of form. This does not require the Contractor to create or maintain any record that the Contractor does not maintain in the ordinary course of business or pursuant to a provision of law.
     (e)(1) Notwithstanding the requirements of the clauses in paragraphs(a), (b), (c), and (d) of this clause, the Contractor is not required to flow down any FAR clause, other than

Page - 14


 

those in paragraphs (i) through (vii) of this paragraph in a subcontract for commercial items. Unless otherwise indicated below, the extent of the flow down shall be as required by the clause—
               (i) 52.219-8, Utilization of Small Business Concerns (May 2004) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $550,000 ($1,000,000 for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting opportunities.
               (ii) 52.222-26, Equal Opportunity (Mar 2007) (E.O. 11246).
               (iii) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sept 2006) (38 U.S.C. 4212).
               (iv) 52.222-36, Affirmative Action for Workers with Disabilities (June 1998) (29 U.S.C. 793).
               (v) 52.222-39, Notification of Employee Rights Concerning Payment of Union Dues or Fees (Dec 2004) (E.O. 13201).
               (vi) 52.222-41, Service Contract Act of 1965 (Nov 2007) (41 U.S.C. 351, et seq.).
                (vii) 52.222-50, Combating Trafficking in Persons (Aug 2007) (22 U.S.C. 7104(g)). Flow down required in accordance with paragraph (f) of FAR clause 52.222-50.
               (viii) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Requirements (Nov 2007) (41 U.S.C. 351, et seq.).
               (ix) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services-Requirements (Nov 2007) (41 U.S.C. 351, et seq.).
               (x) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006) (46 U.S.C. Appx. 1241(b) and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.
          (2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of additional clauses necessary to satisfy its contractual obligations.
(End of clause)
     Alternate I (Feb 2000). As prescribed in 12.301(b)(4), delete paragraph (d) from the basic clause, redesignate paragraph (e) as paragraph (d), and revise the reference to “paragraphs (a), (b), (c), or (d) of this clause in the redesignated paragraph (d) to read “paragraphs (a), (b), and (c) of this clause.
FAR 52.216-1 TYPE OF CONTRACT (APR 1984)
The Government contemplates award of a No-Cost to the Government, Fixed Convenience Fee Rate contract resulting from this solicitation.
(End of Provision)

Page - 15


 

52.217-8 Option to Extend Services.
     As prescribed in 17.208(f), insert a clause substantially the same as the following:
Option to Extend Services (Nov 1999)
     The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 60 days.
(End of clause)
52.217-9 Option to Extend the Term of the Contract.
     As prescribed in 17.208(g), insert a clause substantially the same as the following:
Option to Extend the Term of the Contract (Mar 2000)
     (a) The Government may extend the term of this contract by written notice to the Contractor within 30 days; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 60 days before the contract expires. The preliminary notice does not commit the Government to an extension.
     (b) If the Government exercises this option, the extended contract shall be considered to include this option clause.
     (c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 60 months.
(End of clause)
52.227-19 Commercial Computer Software License.
     As prescribed in 27.409(g), insert the following clause:
Commercial Computer Software License (Dec 2007)
     (a) Notwithstanding any contrary provisions contained in the Contractor’s standard commercial license or lease agreement, the Contractor agrees that the Government will have the rights that are set forth in paragraph (b) of this clause to use, duplicate or disclose any commercial computer software delivered under this contract. The terms and provisions of this contract shall comply with Federal laws and the Federal Acquisition Regulation.

Page - 16


 

     (b)(1) The commercial computer software delivered under this contract may not be used, reproduced, or disclosed by the Government except as provided in paragraph (b)(2) of this clause or as expressly stated otherwise in this contract.
          (2) The commercial computer software may be —
               (i) Used or copied for use with the computer(s) for which it was acquired, including use at any Government installation to which the computer(s) may be transferred;
               (ii) Used or copied for use with a backup computer if any computer for which it was acquired is inoperative;
               (iii) Reproduced for safekeeping (archives) or backup purposes;
               (iv) Modified, adapted, or combined with other computer software, provided that the modified, adapted, or combined portions of the derivative software incorporating any of the delivered, commercial computer software shall be subject to same restrictions set forth in this contract;
               (v) Disclosed to and reproduced for use by support service Contractors or their subcontractors, subject to the same restrictions set forth in this contract; and
               (vi) Used or copied for use with a replacement computer.
          (3) If the commercial computer software is otherwise available without disclosure restrictions, the Contractor licenses it to the Government without disclosure restrictions.
     (c) The Contractor shall affix a notice substantially as follows to any commercial computer software delivered under this contract:
Notice-Notwithstanding any other lease or license agreement that may pertain to, or accompany the delivery of, this computer software, the rights of the Government regarding its use, reproduction and disclosure are as set forth in Government Contract No. TIRNO-09-C-00019.
(End of clause)
52.232-33 Payment by Electronic Funds Transfer — Central Contractor Registration.
     As prescribed in 32.1110(a)(1), insert the following clause:
Payment by Electronic Funds Transfer — Central Contractor Registration
(Oct 2003)
     (a) Method of payment.
           (1) All payments by the Government under this contract shall be made by electronic funds transfer (EFT), except as provided in paragraph (a)(2) of this clause. As used in this clause, the term “EFT” refer’s to the funds transfer and may also include the payment information transfer.
          (2) In the event the Government is unable to release one or more payments by EFT, the Contractor agrees to either—
               (i) Accept payment by check or some other mutually agreeable method of payment; or

Page - 17


 

               (ii) Request the Government to extend the payment due date until such time as the Government can make payment by EFT (but see paragraph (d) of this clause).
     (b) Contractor’s EFT information. The Government shall make payment to the Contractor using the EFT information contained in the Central Contractor Registration (CCR) database. In the event that the EFT information changes, the Contractor shall be responsible for providing the updated information to the CCR database.
     (c) Mechanisms for EFT payment. The Government may make payment by EFT through either the Automated Clearing House (ACH) network, subject to the rules of the National Automated Clearing House Association, or the Fedwire Transfer System. The rules governing Federal payments through the ACH are contained in 31 CFR Part 210.
     (d) Suspension of payment. If the Contractor’s EFT information in the CCR database is incorrect, then the Government need not make payment to the Contractor under this contract until correct EFT information is entered into the CCR database; and any invoice or contract financing request shall be deemed not to be a proper invoice for the purpose of prompt payment under this contract. The prompt payment terms of the contract regarding notice of an improper invoice and delays in accrual of interest penalties apply.
     (e) Liability for uncompleted or erroneous transfers.
          (1) If an uncompleted or erroneous transfer occurs because the Government used the Contractor’s EFT information incorrectly, the Government remains responsible for—
               (i) Making a correct payment;
               (ii) Paying any prompt payment penalty due; and
               (iii) Recovering any erroneously directed funds.
          (2) If an uncompleted or erroneous transfer occurs because the Contractor’s EFT information was incorrect, or was revised within 30 days of Government release of the EFT payment transaction instruction to the Federal Reserve System, and—
               (i) If the funds are no longer under the control of the payment office, the Government is deemed to have made payment and the Contractor is responsible for recovery of any erroneously directed funds; or
               (ii) If the funds remain under the control of the payment office, the Government shall not make payment, and the provisions of paragraph (d) of this clause shall apply.
     (f) EFT and prompt payment. A payment shall be deemed to have been made in a timely manner in accordance with the prompt payment terms of this contract if, in the EFT payment transaction instruction released to the Federal Reserve System, the date specified for settlement of the payment is on or before the prompt payment due date, provided the specified payment date is a valid date under the rules of the Federal Reserve System.
     (g) EFT and assignment of claims. If the Contractor assigns the proceeds of this contract as provided for in the assignment of claims terms of this contract, the Contractor shall require as a condition of any such assignment, that the assignee shall register separately in the CCR database and shall be paid by EFT in accordance with the terms of this clause. Notwithstanding any other requirement of this contract, payment to an ultimate recipient other than the Contractor, or a financial institution properly recognized under an

Page - 18


 

assignment of claims pursuant to Subpart 32.8, is not permitted. In all respects, the requirements of this clause shall apply to the assignee as if it were the Contractor. EFT information that shows the ultimate recipient of the transfer to be other than the Contractor, in the absence of a proper assignment of claims acceptable to the Government, is incorrect EFT information within the meaning of paragraph (d) of this clause.
     (h) Liability for change of EFT information by financial agent. The Government is not liable for errors resulting from changes to EFT information made by the Contractor’s financial agent.
     (i) Payment information. The payment or disbursing office shall forward to the Contractor available payment information that is suitable for transmission as of the date of release of the EFT instruction to the Federal Reserve System. The Government may request the Contractor to designate a desired format and method(s) for delivery of payment information from a list of formats and methods the payment office is capable of executing. However, the Government does not guarantee that any particular format or method of delivery is available at any particular payment office and retains the latitude to use the format and delivery method most convenient to the Government. If the Government makes payment by check in accordance with paragraph (a) of this clause, the Government shall mail the payment information to the remittance address contained in the CCR database.
(End of clause)
52.237-3 Continuity of Services.
     As prescribed in 37.110(c), insert the following clause:
Continuity of Services (Jan 1991)
     (a) The Contractor recognizes that the services under this contract are vital to the Government and must be continued without interruption and that, upon contract expiration, a successor, either the Government or another contractor, may continue them. The Contractor agrees to—
          (1) Furnish phase-in training; and
          (2) Exercise its best efforts and cooperation to effect an orderly and efficient transition to a successor.
     (b) The Contractor shall, upon the Contracting Officer’s written notice, (1) furnish phase-in, phase-out services for up to 90 days after this contract expires and (2) negotiate in good faith a plan with a successor to determine the nature and extent of phase-in, phase-out services required. The plan shall specify a training program and a date for transferring responsibilities for each division of work described in the plan, and shall be subject to the Contracting Officer’s approval. The Contractor shall provide sufficient experienced personnel during the phase-in, phase-out period to ensure that the services called for by this contract are maintained at the required level of proficiency.

Page - 19


 

     (c) The Contractor shall allow as many personnel as practicable to remain on the job to help the successor maintain the continuity and consistency of the services required by this contract. The Contractor also shall disclose necessary personnel records and allow the successor to conduct on-site interviews with these employees. If selected employees are agreeable to the change, the Contractor shall release them at a mutually agreeable date and negotiate transfer of their earned fringe benefits to the successor.
     (d) The Contractor shall be reimbursed for all reasonable phase-in, phase-out costs (i.e., costs incurred within the agreed period after contract expiration that result from phase-in, phase-out operations) and a fee (profit) not to exceed a pro rata portion of the fee (profit) under this contract.
(End of clause)
1052.224-9000(a) Disclosure of Information-Safeguards (January 1998)
In performance of this contract, the Contractor agrees to comply and assume responsibility for compliance by its employees with the following requirements:
(1) All work shall be performed under the supervision of the contractor or the contractor’s responsible employees.
(2) Any return or return information made available shall be used only for the purpose of carrying out the provisions of this contract. Information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract. Inspection by or disclosure to anyone other than an officer or employee of the contractor shall require prior written approval of the Internal Revenue Service. Requests to make such inspections or disclosures should be addressed to the IRS Contracting Officer.
(3) Should a person (contractor or subcontractor) or one of his/her employees make any unauthorized inspection(s) or disclosure(s) of confidential tax information, the terms of the Default (Fixed Price Supply and Service)clause (FAR 52.249-8), incorporated herein by reference, may be invoked, and the person (contractor or subcontractor) will be considered to be in breach of this contract.
(4) (Include here any additional safeguards provided by the requisitioner.)
[End of Clause]
1052.224-9000(d) Disclosure of “Sensitive but Unclassified” Information Safeguards (March 2008)
Any Treasury Department Information made available or to which access is provided, and which is marked or should be marked “Sensitive but Unclassified Use Only”, shall be used only for the purpose of carrying out the provisions of this contract and

Page - 20


 

shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract. Disclosure to anyone other than an officer or employee of the contractor or subcontractor at any tier shall require prior written approval of the IRS. Requests to make such disclosure should be addressed to the IRS Contracting Officer.
[End of Clause]
1052.2249001A IRSAP 1052.224-9001(a) Disclosure of Information — Criminal/Civil Sanctions (January 1998)
(1) Each officer or employee of any person (contractor or subcontractor) at any tier to whom returns or return information is or may be disclosed shall be notified in writing by the person (contractor or subcontractor) that returns or return information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such returns or return information for a purpose or to an extent unauthorized herein constitutes a felony punishable upon conviction by a fine of as much as $5,000 or imprisonment for as long as five years, or both, together with the costs of prosecution. Such person (contractor or subcontractor) shall also notify each such officer and employee that any such unauthorized future disclosure of returns or return information may also result in an award of civil damages against the officer or employee in an amount not less than $1,000 with respect to each instance of unauthorized disclosure plus in the case of willful disclosure or a disclosure which is the result of gross negligence, punitive damages, plus the cost of the action. These penalties are prescribed by IRC Sections 7213 and 7431 and set forth at 26 CFR 301.6103(n)-1.
(2) Each officer or employee of any person (contractor or subcontractor) to whom returns or return information is or may be disclosed shall be notified in writing by such person that any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this contract and that inspection of any such returns or return information for a purpose or to an extent not authorized herein constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000.00 or imprisonment for as long as 1 year, or both, together with the costs of prosecution. Such person (contractor or subcontractor) shall also notify each such officer and employee that any such unauthorized inspection of returns or return information may also result in an award of civil damages against the officer or employee in an amount equal to the sum of the greater of $1,000.00 for each act of unauthorized inspection with respect to which such defendant is found liable or the sum of the actual damages sustained by the plaintiff as a result of such unauthorized inspection plus in the case of a willful inspection or an inspection which is the result of gross negligence, punitive damages, plus the costs of the action. The penalties are prescribed by IRC Sections 7213A and 7431.
(3) Additionally, it is incumbent upon the contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a. Specifically, 5 U.S.C. 552a(I)(1), which is made applicable to contractors by 5 U.S.C. 552a(m)(1), provides that any officer or

Page - 21


 

      employee of a contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is so prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000.
[End of Clause]
1052.224-9001(b) Disclosure of Information-Sensitive but Unclassified Use Only (March 2008)
Each officer or employee of the contractor or subcontractor at any tier to whom “Sensitive but Unclassified Use Only” information may be made available or disclosed shall be notified in writing by the contractor that “Sensitive but Unclassified Use Only” information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such “Sensitive but Unclassified Use Only” information, by any means, for a purpose or to an extent unauthorized herein, may subject the offender to criminal sanctions imposed by 18 U.S.C. Sections 641 and 3571. Section 641 of 18 U.S.C. provides, in pertinent part, that whoever knowingly converts to his use or the use of another, or without authority sells, conveys, or disposes of any record of the United States or whoever receives the same with the intent to convert it to his use or gain, knowing it to have been converted, shall be guilty of a crime punishable by a fine or imprisoned up to ten years or both.
[End of Clause]
1052.224-9002 IRSAP 1052.224-9002 Disclosure of Information — Inspection (December 1988)
The Internal Revenue Service shall have the right to send its officers and employees into the offices and plants of the contractor for inspection of the facilities and operations provided for the performance of any work under this contract. On the basis of such inspection, the Contracting Officer may require specific measures in cases where the contractor is found to be noncompliant with contract safeguards.
[End of Clause]
1052.204-9003 Information Security Training Requirements (Mar 2008)
INFORMATION SECURITY TRAINING REQUIREMENTS (Mar 2008)
(a) The Federal Information Security Management Act of 2002 (FISMA) requires

Page - 22


 

each federal agency to provide periodic information security awareness training to all employees, including contractors, involved in the management, use, or operation of Federal information and information systems. In addition, IRS contractors and their employees are subject to the Taxpayer Browsing Protection Act of 1997, which prohibits willful unauthorized inspection of returns and return information. Violation of the Act could result in civil and criminal penalties.
(b) Contractors and their employees who require staff-like access to IRS information or information systems at an IRS facility or a contractor-owned/managed facility shall complete IRS security awareness training annually, as specified in the contract.
NOTE: “IRS information” means Sensitive But Unclassified (SBU) information, which includes Federal tax returns or return information, Official Use Only (OUO) information, Personally Identifiable Information (PII) and Privacy Act information.
(c) The specified training shall be completed within 30 days of award. Annually thereafter, contractor employees shall complete the briefing during the 2nd Quarter and up to April 30, of the fiscal year. Contractor employees assigned to a contract during the period of performance shall complete the required training within 30 days of their start work date.
(d) Contractors shall verify in writing within 30 days of award, and by May 12, of each year thereafter, that all of their affected employees have successfully completed the specified training. Verification reports shall be signed by an official with the legal authority to bind the Contractor.
(e) The IRS will provide access to the training material. Electronic copies of the Information Protection Briefing and ?Awareness Briefing Certification Form? are available on MITS Cybersecurity website, http://mass.web.irs.gov/ITSec/ContractorSecurityTraining.asp. A PowerPoint version of the briefing and copy of the certification form are available for contractors that do not have access to the IRS intranet by the COTR.
(f) No work shall be performed until the contractor employee has completed the specified briefing. If the required training is not completed within the time frame specified, the contractor employee’s application for system and/or building access will be suspended and any current access will be terminated.
[End of clause]
Alternate 1 (JUN 2007)
Substitute the following paragraphs (c), (d) and (f) for paragraphs (c), (d) and (f) of

Page - 23


 

the basic clause when an existing contract, task/delivery/purchase order, interagency agreement, or BPA is being modified.
(c) All training shall be completed within 30 days of contract modification and annually thereafter during the 2nd Quarter and up to April 30, of the fiscal year. Contractor employees assigned to a contract during the period of performance shall complete the required training within 30 days of their start work date.
(d) Contractors shall certify in writing within 30 days of contract modification, and annually thereafter by May 12, that all of their affected employees have successfully completed the specified training. Certifications shall be signed by an official with the legal authority to bind the Contractor.
(f) If the required training is not completed within the time frame specified, the contractor employee’s application for system and/or building access will be suspended and any current access will be terminated.

Page - 24


 

(GRAPHIC)
ATTACHMENT 2
STATEMENT OF WORK
Entitled
Electronic PAYMENT
(E-PAYMENT)

Page - 25


 

C.1 STATEMENT OF WORK
C.1.1 INTRODUCTION
The Internal Revenue Service (IRS) is one of the largest processors of information in the world, collecting more than $2.2 trillion annually.1 Transactions include receiving and processing tax-related data, such as individual and business tax returns, information returns, refunds and payments. While some of these transactions are electronic, the IRS still devotes significant resources to convert data provided by its information exchange partners into an electronically processable format.
As described in the IRS Strategic Plan, we are planning to improve service to taxpayers by improving service options for the taxpaying public, facilitating participation in the tax systems by all sectors of the public and simplifying the tax process. This will be accomplished as we increase the scope and accessibility of electronic payment services and simplify the paying experience for all taxpayers. We will continue to launch new and enhanced filing and payment programs to create an environment where electronic interaction is the preferred option for our customers. Electronic payment options will be enhanced allowing for greater flexibility for the taxpayer through more choices. To do so, we will continue to partner with private industry to develop products that will encourage taxpayers to electronically pay estimated and balance due taxes.
Since January 1999, individual taxpayers have been able to electronically pay the balance due on individual tax returns by way of an electronic funds withdrawal or credit card payment. Currently, individuals and various business taxpayers can pay electronically by authorizing an electronic funds withdrawal (direct debit) from a checking or savings account via a personal computer or an authorized e-file provider; by credit card using a touch-tone phone or via the Internet; or by credit card through an integrated e-file and e-pay solution. These payment options are made possible by the Taxpayer Relief Act (TRA) of 1997, which authorized the acceptance of tax payments via any commercially acceptable means.
In the 2008 filing season, taxpayers could (1) pay by phone or Internet using a credit card through two service providers; (2) electronically file and pay by credit card through service providers who partner with software developers; and (3) electronically file and pay by electronic funds withdrawal through authorized IRS e-file providers and commercial tax preparation software.
C.1.2. SCOPE
The primary objective of this Statement of Work (SOW) will focus on expanding the use of electronic payment methods to collect federal tax payments and encouraging taxpayers to use electronic media to interact with the IRS.
NOTE: This would exclude any ACH origination system or products and services provided by financial institutions.
The IRS is seeking to expand the electronic payments initiative through additional partnerships with private industry. To this end, the Government is interested in awarding contracts that will increase the number of electronically filed balance due returns and other taxpayer forms and related payments. The IRS is looking for ways to build upon and expand this initiative to improve service for balance due filers who e-file and to attract others to the program. Expansion shall include payment methods that do not require IRS to receive, process and store paper checks and money orders. This may include, but is not limited to, the acceptance of electronic fund transfers, intermediary conversion of paper checks and money orders to electronic transactions, or credit card transactions.
The Government intends to award at least two, no more than three, non-monetary, zero-dollar contracts in calendar year 2009 for filing season 2010. The resultant contracts will encompass a base period of nine (9)
 
  The data was derived from the IRS 2005 Data Book.

Page - 26


 

months and four, 12-month option periods, that may extend the contract period of performance through filing season 2013. These contracts will be for electronic payment services that allow electronic and paper filers to make individual and/or business federal tax payments by electronic means. As described in the Taxpayer Relief Act of 1997, the Secretary of Treasury is authorized to receive internal revenue taxes through any commercially acceptable means. However, the Secretary may not pay any fee or provide any other consideration under any related contracts.
Pursuant to Federal Acquisition Regulation (FAR) Part 12, entitled, “Acquisition of Commercial Items” this requirement as set forth is a “commercial item” acquisition, as defined in FAR 2.101. Therefore, the IRS is seeking proposed solutions that are based upon commercial products that are currently offered in the market place as of the release date of this solicitation and proven approaches. The Government requires that the service providers have a proven history of accepting Electronic payments commercially at the time of proposal submission.
A brief examination of this definition demonstrates that “commercial item” includes commercial products with minor modifications, installation and other services such as integration, which support commercial items and, combinations of products and services. Also, services offered and sold based on established catalog or market prices are included as are non-developmental items sold competitively to multiple State and local governments. The FAR definition of “commercial item” can be found in Attachment 3, Appendix A.
Integrated e-file and e-pay credit card service provider option is available non-competitively and is outside of the scope of this RFP. Refer to the Credit Card Bulk Provider Requirements document (Attachment 3, Appendix B) for information on how to become an integrated e-file and e-pay credit card service provider.
C.1.3. OBJECTIVE
The IRS is looking for the best solutions for making electronic payment options the preferred method for paying taxes. Specifically, the objective of this solicitation is to tap the creativity of the private sector to identify and present approaches to move balance due return payments and other tax forms with related payments to primarily electronic transactions.
Electronic payment options should simplify payment transactions in such a way as to encourage taxpayers to explore other opportunities for electronic exchanges with the IRS. A goal is to communicate that electronic payment options are (1) convenient, safe and secure and (2) a normal outgrowth of the trend in electronic filing and overall e-commerce. We are looking for approaches that are convenient, minimize cost to the taxpayer and ensure privacy and security.
C.1.4. BACKGROUND
The IRS received 132.5 million tax year 2004 individual returns. Of that total, 68.5 million were filed electronically – 7.2 million of which were balance due returns (a 42% increase over the prior year’s electronic balance due return volume). In FY 2005, nearly 1.5 million electronic 1040 payments equaling $3.1 billion were received. More than 1.16 million Federal tax payments were made by electronic funds withdrawal, an increase of 39 percent over the prior year. In 2005, approximately 1.5 million Federal tax payments were made by credit card, an increase of 54 percent over the prior year. While these growth rates are encouraging, the initiative is still maturing.
The charts below represent return and payment data from years 2003 and 2005.

Page - 27


 

INDIVIDUAL ELECTRONIC PAYMENT AVERAGE AMOUNT (FY 2005)
                 
    Electronic Funds Withdrawal   Credit Card
Form 1040
  $ 2,188     $ 1,823  
Form 4868
  $ 14,734     $ 3,236  
Form 1040ES
  $ 4,105     $ 3,619  
                 
Income Tax Returns (TY 2003)   Number of Returns   Amount
Total returns
    130,423,626          
Returns with Income tax withheld
    114,861,706     $ 703,758,484  
Payment with Extension Request
    1,333,579     $ 38,303,188  
Estimated tax payments
    11,576,2132     $ 182,906,911  
Tax due at time of filing
    21,072,333     $ 73,741,408  
Source: IRS, Statistics of Income, Individual Complete Report 2003, Publication 1304, September 2005.
 
2   Approximately, 34 million distinct Form 1040ES payments were made which were applied to the above returns.
                 
Business Tax Returns – Balance Due (Processing Year 2003)   Number of Returns   Amount (in thousands)
Annual Federal Unemployment Tax Returns (F940)
    2,393,865     $ 329,781,163  
Quarterly Employment Tax Return (F941)
    6,121,496     $ 8,531,515,026  
Corporate Tax Return (1120 series)
    482,434     $ 7,397,069,148  
Highway Use Tax (Form 2290)
    428,408     $ 774,685,778  
Source: IRS, Statistics of Income. This sample of business tax payment volumes is not intended to be all inclusive of the Filing Season 2008 electronic payment initiative.
C.1.5 CONTRACT REQUIREMENTS
The Contractor shall accept MasterCard and VISA Credit and Debit, American Express, Discover, NYCE, PULSE, and STAR cards for making federal tax payments.
The Contractor shall accept by way of Web applications only, two new additional payment options for payment of federal taxes. (1) Bill Me Later (BML) and (2) American Express Membership Rewards. The Contractor shall introduce a new federal only website URL: (Official Payments Federal Payments Website (www.officialpayments.com/fed), in which all Web applicants will have access to, for making federal tax payments. The Contractor shall introduce a new federal only IVR: (Official Payments Federal Payments IVR (888-UPAY-TAX), in which all applicants will have access to, for making federal tax payments.
Some transactions charge a convenience fee of 2.35% of the tax payment with a $3.95 minimum fee. Other transactions charge a flat/fixed rate fee of $3.95 per transaction. The convenience fee charge is based on the method and card being used.
The Contractor shall notify IVR applicants that the additional payment options and website URL, are available to Web applicants only. The Contractor will also inform the IVR applicants that the 2.35% convenience fee (with a $3.95 minimum) and the flat/fixed rate fee of $3.95, as applicable, shall also be available to IVR applicants.
The Contractor shall introduce the two new payment options, the new website URL, and the new IVR that is listed above, on January 1, 2010 for the commencement of the 2010 Filing Season.

Page - 28


 

C.2 MINIMUM MANDATORY BUSINESS REQUIREMENTS
An offeror’s proposal must meet all of the Government’s minimum mandatory requirements in order to be considered for contract award.
C.2.1 The Contractor shall provide an electronic payment processing service that allows taxpayers to make federal tax payments through convenient, safe and secure means, which will also reduce governmental costs and improve cash flow to the federal government.
C.2.2 The Contractor shall provide a system that allows a wide array of taxpayers’ (i.e. domestic, international) access for making federal income and business tax payments. All Interactive Voice Response (IVR) and Internet applications are required to provide taxpayers with a unique toll-free number and web address (URL) for the completion of federal payments only.
C.2.3 The Contractor shall exercise best practices and industry standards for preparing and maintaining systems and application documentation.
C.2.4 The Contractor shall settle funds through the Treasury Financial Agent (TFA). All funds must settle within 24 — 48 hours (cards only — see Attachment 3, Appendix B, Credit Card Bulk Provider Requirements document). Electronic payments should be received by the Treasury in a timely manner and in the ordinary course of business.
C.2.5 The Contractor shall provide only guaranteed payments to the Government for federal taxes owed. Funds must be available in the Contractor’s designated bank account one business day after the settlement file is submitted.
C.2.6 The Contractor shall comply with electronic payment regulations of the Internal Revenue Code, including Section 301.6311-2, Payment by credit card and debit card and any subsequent updates and revisions (Attachment 3, Appendix C).
C.2.7 The Contractor shall provide a system that accepts one or more types of federal income (i.e. 1040, 1040ES, 4868) and business (i.e. 94X) tax payments including balance due, extension and estimated payments. The IRS reserves the right to increase tax payment types annually. Payments shall be accepted in accordance with written filing season credit card processing periods as defined by the IRS.
C.2.8 The Contractor shall minimize duplicate and erroneous payment opportunities by establishing processes to prevent users from submitting multiple, identical payments and comply with the limits on the number of payments that can be made per taxpayer per tax type in accordance with IRS guidelines. An integrated database that centrally regulates such limitations, independent of the payment channel, e.g., IVR or Web, shall be used.
C.2.9 The Contractor shall provide an accuracy rate of 99% or higher for all transmitted transaction data as provided by the taxpayer. This includes accuracy of electronic payment data forwarded to the Service by the Contractor that may be impacted by intermediate actions taken by the Contractor necessary for coding, applying, and transmitting payment data. Any adjustments to transaction files resulting from failure to correctly verify and validate payment information shall be the responsibility of the Contractor.
C.2.10 The Contractor shall implement systems controls to prevent duplicate payments that could result from multiple transmissions of a settlement file or other errors resulting from the completion and transmission of identical payment transactions. Duplicate payments caused by insufficient system controls will adversely impact the Contractor’s accuracy rate.

Page - 29


 

C.2.11 The Contractor shall inform taxpayers of the dollar amounts of all fees, if any, related to the payment transaction and obtain taxpayers’ acknowledgement or acceptance of fees prior to completing any payment transactions. The Contractor’s proposed method for obtaining taxpayer’s acknowledgement or acceptance of fees must be approved in advance by the Government.
C.2.12 If a fee is charged, the Contractor shall charge a convenience fee that minimizes cost to the taxpayer. Historically, the fee has been no greater than 2.49% per payment transaction. The Contractor shall submit changes to any fee structure to the IRS for review and approval.
C.2.13 The Contractor shall submit payment data files in accordance with the Credit Card Bulk Provider Requirements for transmitting payment data to the Government’s TFA. The Contractor shall forward settlement files to the TFA one business day prior to settlement.
C.2.14 The Contractor shall secure entity validation, in accordance with the Credit Card Bulk Provider Requirements, prior to forwarding settlement files to the TFA. The Contractor must establish processes to inform users that an entity (Social Security Number or Employer Identification Number) reject occurred. The Contractor shall exercise due diligence in notifying taxpayers of entity rejections.
C.2.15 The Contractor shall convert payment transactions to Automated Clearing House (ACH) debit authorizations and settle funds through the TFA. The Contractor shall submit daily, payment detail records or settlement files using the American National Standards Institute (ANSI) X12 Electronic Data Interchange (EDI) 813 transaction set. The TFA will initiate one bulk debit each business day from the Contractor’s account, which must be established for this purpose.
C.2.16 The Contractor shall provide settled funds where the payment transaction date is less than 11 days prior to the settlement date (cards only). In the event that funds settlement is delayed beyond this period due to a reject condition, such as invalid entity, the payment must be re-initiated and the new payment date submitted for posting.
C.2.17 The Contractor shall retain transaction logs (i.e. card authorization logs) for 72 months from the date of each transaction. The information in such logs shall include transaction type, date and time, credit card number (if applicable), amount of transaction, and approval/confirmation number. This requirement shall survive the life of this contract, and the Government will have the right to inspect such logs upon reasonable notice to the Contractor.
C.2.18 The Contractor shall, in accordance with C.10 Schedule of Performance, complete any necessary modifications to software, systems, and services in accordance with its commercial business practices to conform to the provisions of IRS regulations promulgated under U.S.C. 6311 (d)(1). This contract is considered modified automatically to incorporate by reference the current provisions of such regulations during the life of this contract.
C.2.19 The Contractor shall provide a merchant descriptor on the taxpayer’s card statement describing the tax payment amount as a unique line item entitled “U S Treasury Tax Payment”.
C.2.20 The Contractor shall provide a merchant descriptor on the taxpayer’s card statement describing the transaction fee amount as a unique line item.
C.2.21 The Contractor shall conduct post implementation review of live application including production monitoring, reporting, user/non-user surveys and user free-form comments.
C.2.22 The Contractor shall provide federal taxpayers 24 hour x 7 days a week access to electronic payment options and networks employed by the Contractor at a rate equal to or exceeding 95% availability on any given calendar day. This includes the total number of customers successfully

Page - 30


 

accessing the Contractor’s electronic transaction network on the first attempt compared to the total number of attempts as well as overall availability.
C.2.23 The Contractor shall ensure that certain edits and actions are performed to confirm the validity of taxpayer information and ensure that the federal tax payment will be applied accurately and as intended by taxpayers.
C.2.24 The Contractor shall provide an acknowledgement or confirmation of payment acceptance to the taxpayer. In the event that other companies are subcontracted to participate in the program, the Contractor shall negotiate with the sub-contractors to minimize all fees or surcharges assessed.
C.2.25 The Contractor shall provide taxpayers with confirmation of payment transactions through the payment means (for example, IVR, Internet, etc.) used to complete the payment. An integrated database shall be used, whereby; taxpayers may verify both IVR and Internet payments through either payment application.
C.2.26 The Contractor shall provide taxpayers live and automated customer service including frequently asked questions and problem resolution assistance. Live customer service assistance shall be available, at a minimum, Monday through Friday, 7:00 am to 7:00 pm, local time.
C.2.27 The Contractor shall exercise due diligence in notifying taxpayers of entity and payment rejections. Processes and procedures shall be documented and subject to IRS’s review and approval.
C.2.28 The Contractor shall provide a Funds Settlement Timeline, detailing payment data flow from transaction authorization to settlement, which will be reviewed and approved by IRS. Any funds held overnight from one business day to the next business day shall be subject to U.S. Treasury penalties and interest.
C.2.29 The Contractor shall provide documentation to the Government before the program commences, of application test plans, test cases and test results and certification. See C.10 Schedule of Performance.
C.2.30 The Contractor shall provide documentation to the Government before the program commences, of the transaction processing networks employed in the program and the network’s interfaces. Documentation requirements include, but are not limited to, network design and architecture, capacity analysis, risk assessment, disaster recovery plan, configuration management plan and information security plan. Configuration control and management shall be exercised and documented as system and functionality changes occur.
C.2.31 The Contractor shall provide initial and final functional requirements and user interface documentation to the Government, including but not limited to interactive voice response scripts and call flows, web pages, desktop software input and information screens, application design and architecture schematics describing (a) work processes, business rules, error conditions and data flow from payment initiation through completion and (b) customer service functions and outputs (reports, etc.) for review and approval before the program commences. Once the program commences, subsequent functionality and user interface changes (scripts, web screens, etc.) must be approved by the IRS before any change is implemented.
C.2.32 The Contractor shall provide incident reports of any material network outages, work stoppages, or other payment processing problems. This includes but is not limited to systemic problems related to authorizing credit on-line and human errors that result in duplicate payments or non-payment. Outages and stoppages in excess of one hour are considered to be material in nature during non-peak processing periods.
C.2.33 All outages during peak processing are considered material. Peak processing periods

Page - 31


 

include, but are not limited to, the seven-day period ending on the 15th day of January, April, June, September and October (or the next business day if the 15th falls on a weekend or holiday). The Contractor shall inform the Contracting Officer’s Technical Representative (COTR) of all incidents within 24 hours of occurrence or awareness, and shall provide an incident report within 5 business days. Incident reports shall include a description of the incident, the cause, number of taxpayers impacted and dollars involved, duration of the incident, and actions taken by the Contractor to remedy the incident.
C.2.34 The Contractor shall pay any and all transaction fees to subcontractors related to the completion of the payment transaction.
C.2.35 The Contractor shall provide a Work Breakdown Schedule (WBS), using MS Project, covering the system development life cycle and update the WBS regularly to reflect current task status.
C.2.36 The Contractor shall provide a primary and backup transaction processing system and complete necessary contingency planning to ensure that disaster recovery processes include actions to continue transaction processing in the event of unplanned events. Backup systems should be deployed within one hour after the primary system experiences an outage.
C.2.37 The Contractor shall comply with technical, procedural and security requirements and controls as defined by the IRS. The Contractor must meet the IRS system and data security requirements in the areas of computer, communications, personnel, physical, procedural and training requirements and controls.
C.2.38 The Contractor shall provide necessary systems and data accesses to the Government’s representative performing independent verification and validation (IV&V) reviews of system’s readiness, including, but not limited to, application functionality testing, stress testing, vulnerability testing and security testing. In addition, a trusted facility manual (systems administrator manual) shall be a key component of the IV&V review. The IV&V Review will be based on federal law and IRS computer security policy and guidance [as described in the Computer Security Act of 1987, Taxpayer Browsing Protection Act of 1997, Federal Information Systems Management Act (FISMA) of 2002, National Institute of Standards and Technology publications (NIST SP 800-26 and SP 800-53 rev 1), Office of Management and Budget (OMB) circulars, Federal Information Processing Standards (FIPS 200 & 201), Treasury Directives (TD P 71-10 & 85-01) and applicable Internal Revenue Manuals (IRM) and subsequent revisions] as well as best practices and industry standards.
C.2.39 The Contractor shall implement systems controls that provide fraud detection and limit fraudulent payment transactions. The system shall have the capability to prevent transactions from certain cards or to certain accounts. The Contractor must incorporate best practices and industry standards.
C.2.40 The Contractor shall complete annual integrated readiness testing with IRS and TFA (includes use of simulated payment data on test systems and production systems). The tests shall cover the Contractor’s primary and back-up host sites and ensure readiness to accept transactions as well as forward settlement files from both sites. Refer to the C.10, Schedule of Performance.
C.2.41 The Contractor shall perform full cycle, live transaction processing (all applications) through the back-up site for a 24-hour period. This will be scheduled annually, coordinated with the TFA and completed prior to the January start-up.
C.2.42 The Contractor shall maintain the confidentiality of any information relating to electronic payment transactions with absolutely no disclosure or use except to the extent authorized by written procedures promulgated by the IRS pursuant to 26 U.S.C. 6311(e) (3).
C.2.43 The Contractor and their employees who have or could potentially have access to taxpayer information are subject to the Taxpayer Browsing Protection Act of 1997

Page - 32


 

provisions, section 6103 provisions of the Act and IRS mandatory briefing requirements. The Information Protection briefing must be given annually and must be completed by a date specified by the IRS. The contractor shall provide documentation that the briefing was reviewed by individuals (specify the names) assigned to the contract.
C.2.44 The Contractor shall maintain the confidentiality of any information relating to Federal/State electronic payment transactions completed in a single transaction. This includes absolutely no disclosure or use of information collected during this transaction for any purpose other than processing the transaction to the U.S. Treasury or appropriate State. Information collected during the transaction shall not be disclosed or used for any purpose prohibited by law and the Internal Revenue Code.
C.2.45 The Contractor shall actively encourage and promote the use of electronic payment product(s).
C.2.46 The Contractor shall provide a Marketing Plan and deliverables that support and facilitate public awareness of IRS e-file and electronic payments. The Marketing Plan should describe planned marketing products and/or tools, targeted audience and the distribution timeline. The Plan shall also describe (1) any planned use of IRS e-file key messages and/or logo on marketing products; (2) defined measures for success; and, (3) method for tracking the number of unique taxpayers that pay electronically as a result of marketing products/tools. All marketing products/tools shall be provided to the Government in draft for review and approval at least 3 business days prior to the due date. See C.12, Public Release of Information.
C.2.47 Upon the expiration (or termination) of the Contract, all user interface methods (payment IVR, customer service IVR and Web) must be updated to inform taxpayers that the payment services are no longer available and refer taxpayers to the IRS customer service number and web site for assistance. The related messages shall also inform users how to contact the Contractor for problem resolution. The Contractor must provide draft scripts and web screens for review and approval prior to implementation. The approved messages shall be in effect for a period of no less than 150 days after contract expiration or termination. The IRS will approve any subsequent changes before they are implemented. The requirements to provide problem resolution support to users shall exceed the life of the Contract.
C.2.48 The Contractor is subject to Section 508 of the Rehabilitation Act of 1973 (as amended by the Workforce Investment Act of 1998) and the Architectural and Transportation Barriers Compliance Board Electronic and Information Technology (EIT) Accessibility Standards (36 CFR Part 1194). The electronic payment processing service must meet applicable accessibility provisions of part 1194 Subparts B, C and D; such as, 1194.22 Web-bases Intranet/Internet Information and Applications and 1194.23 Telecommunications Products in accordance with FAR 39.2 (Section 508 Applicable Standards, Attachment 3, Appendix D).
C.3 REHABILITATION ACT OF 1973, SECTION 508 IT ACCESSIBILITY REQUIREMENTS
A. General
1. Purpose (Reference 36 CFR 1194.1)
(a) The below technical standards are those issued by the Architectural and Transportation Barriers Compliance Board (Access Board), pursuant to Section 508 (a) (2) (A) of the Rehabilitation Act Amendments of 1998 (29 U.S.C. § 794 (d)) as enacted in the Workforce Investment Act of 1998. (The Access Board is an independent Federal agency established by Section 502 of the Rehabilitation Act (29 U.S.C. 792) whose primary mission is to promote accessibility for individuals with disabilities.)

Page - 33


 

(b) Section 508 requires that when Federal agencies develop, procure, maintain, or use electronic and information technology, Federal employees with disabilities have access to and use of information and data that is comparable to the access and use by Federal employees who are not individuals with disabilities, unless an undue burden would be imposed on the agency. Section 508 also requires that individuals with disabilities, who are members of the public seeking information or services from a Federal agency, have access to and use of information and data that is comparable to that provided to the public who are not individuals with disabilities, unless an undue burden would be imposed on the agency.
2. Application (Reference 36 CFR 1194.2)
(a) This section does not apply to Electronic and Information Technology that is acquired by the contractor incidental to the contract, or is neither used nor accessed by Federal employees or members of the public, and contractor employees in their professional capacity are not considered members of the public.
(b) For any EIT product proposed in response to this solicitation as a deliverable that is a commercial item (as defined by the Federal Acquisition Regulation, Subpart 2.101) or any EIT product to be developed in response to this solicitation, that will be available to meet this contract’s delivery requirements, the contractor must represent within his proposal that the product(s) complies with all of the below standards. The contractor must complete the matrix, Electronic & Information Technology (E&IT) Accessibility Evaluation, located in Attachment 3, Appendix G, and submit it with his/her proposal.
(c) If such product does not comply with all of the below standards, the contractor must specify each specific standard that is not met.
(d) Full compliance of the Section 508 applicable technical standards must be obtained prior to implementation on January 1, 2010. IRS will reserve the right to test the Contractor for full compliance of the applicable Section 508 standards and provisions prior to implementation of services.
C.4 1052.239-9008 Section 508 Information, Documentation, and Support (SEP 2006)
In accordance with 36 CFR 1194, Subpart D, the electronic information technology (EIT) products and product support services furnished in performance of this contract shall be documented to indicate the current conformance level with Section 508 of the Rehabilitation Act of 1973, per the 1998 Amendments, and the Architectural and Transportation Barriers Compliance Board’s Electronic and Information Technology Accessibility Standards. At no time during the performance of the award shall the level of conformance go below the level of conformance in place at the time of award. At no additional cost, the contractor shall provide information, documentation, and support relative to the supplies and services as described in Attachment 3, Appendix D. The Contractor shall maintain this detailed listing of compliant products for the full contract term, including all forms of extensions, and shall ensure that it is current within five calendar days after award and within three calendar days of changes in products being utilized as follows:
  (c)   Product support documentation provided to end-users shall be made available in alternate formats upon request, at no additional charge.
 
  (d)   End-users shall have access to a description of the accessibility and compatibility features of products in alternate formats or alternate methods upon request, at no additional charge.
 
  (e)   Support Services for products shall accommodate the communication needs of end-users with disabilities.

Page - 34


 

[End of clause]
C.5 1052.239-9009 Section 508 Conformance (SEP 2006)
Each electronic and information technology (EIT) product and/or product related service delivered under the terms of this contract, at a minimum, shall conform to the applicable accessibility standards at 36 CFR 1194 at the level of conformance specified in Attachment 3, Appendix D.
The following technical standards have been determined to be applicable to this contract:
      o 1194.21, Software applications and operating systems.
  o(a)   o(b) o(c) o(d) o(e) o(f) o(g) o(h) o(i) o(j) o(k) o(l)
      þ 1194.22, Web-based intranet and internet information and applications.
  þ(a)   þ(b) þ(c) þ(d) þ(e) o(f) þ(g) þ(h) þ(i) þ(j) o(k) þ(l) þ(m) þ(n) þ(o) o(p)
      þ 1194.23, Telecommunications products.
  o(a)   o(b) þ(c) þ(d) o(e) o(f) o(g) o(h) o(i) þ(j) o(k)
      o 1194.24, Video and multimedia products.
  o(a)   o(b) o(c) o(d) o(e)
      o 1194.25, Self contained, closed products.
  o(a)   o(b) o(c) o(d) o(e) o(f) o(g) o(h) o(i) o(j)
      o 1194.26, Desktop and portable computers.
  o(a)   o(b) o(c) o(d)
The standards do not require the installation of specific accessibility-related software or the attachment of an assistive technology device, but merely require that the EIT be compatible with such software and devices so that it can be made accessible if so required by the agency in the future.
The follow functional performance criteria (36 CFR 1194.31) apply to this contract.
þ   (a) At least one mode of operation and information retrieval that does not require user vision shall be provided, or support for assistive technology used by people who are blind or visually impaired shall be provided.
 
þ   (b) At least one mode of operation and information retrieval that does not require visual acuity greater than 20/70 shall be provided in audio and enlarged print output working together or independently, or support for assistive technology used by people who are visually impaired shall be provided.
 
þ   (c) At least one mode of operation and information retrieval that does not require user hearing shall be provided, or support for assistive technology used by people who are deaf or hard of hearing shall be provided.

Page - 35


 

þ   (d) Where audio information is important for the use of a product, at least one mode of operation and information retrieval shall be provided in an enhanced auditory fashion, or support for assistive hearing devices shall be provided.
 
þ   (e) At least one mode of operation and information retrieval that does not require user speech shall be provided, or support for assistive technology used by people with disabilities shall be provided.
 
þ   (f) At least one mode of operation and information retrieval that does not require fine motor control or simultaneous actions and that is operable with limited reach and strength shall be provided.
[End of clause]
C.6 HIGHLY DESIRABLE FEATURES
The Government’s highly desirable features will be considered as part of the award determination.
C.6.1 System Design
C.6.1.1 It is highly desirable that the Contractor provide a payment processing system that has both English and Spanish language capabilities, if applicable.
C.6.2 System Security and Test
C.6.2.1 It is highly desirable that the Contractor utilize and provide a separate test environment from production.
C.6.3 Management and Customer Service
C.6.3.1 It is highly desirable that the Contractor provide bilingual (English and Spanish) customer service representatives.
C.6.3.2 It is highly desirable that the Contractor provide appropriate staff during peak processing periods.
C.6.3.3 It is highly desirable that the Contractor provide clear, concise messaging and consistent treatment.
C.6.3.4 It is highly desirable that the Contractor provide timely and effective responsiveness to all taxpayer and government inquires.
C.6.4 Marketing and Deliverables
C.6.4.1 It is highly desirable that the Contractor utilize documentation management and defect reporting tools to organize and control systems, applications and documentation changes and track problems from the point of awareness to resolution.
C.6.4.2 It is highly desirable that the Contractor include all business rules in the functional application documents, if applicable.

Page - 36


 

C.7 DUTIES AND RESPONSIBILITIES OF THE GOVERNMENT
The Government’s, that is, the Internal Revenue Service’s, duties and responsibilities during the term of this contract will be to:
C.7.1 Provide electronic record specifications necessary for funds settlement and posting of tax data related to the electronic payment transactions.
C.7.2 Provide functional requirements documentation annually, outlining validity checks and processing periods.
C.7.3 Designate Treasury Financial Agent(s) to act on the Government’s behalf for settlement of funds in payment of taxes owed.
C.7.4 Provide outline of required reports — see C.9, Deliverables.
C.7.5 Provide an Electronic Payments Brochure and poster annually, by mail.
C.7.6 Provide no monetary consideration to the Contractor for electronic payment transactions.
C.7.7 Process credit card chargeback actions in accordance with its written procedures. This shall include reimbursing the Contractor for unauthorized or erroneous charges that are substantiated by the cardholder and approved by the Contractor’s duly authorized management representative. The Contractor shall have completed and delivered the appropriate IRS chargeback form and supporting documentation to the IRS as described in IRS chargeback procedures. Such chargeback requests shall be processed based on the Contractor’s determination of the appropriateness of this action as signified by its authorized claimant’s signature. In the event, the IRS notifies the Contractor of duplicate payments that may be subject to chargeback action, it is incumbent upon the Contractor to research the nature of the duplicate payment and timely initiate the appropriate action. Chargeback requests received within 150 days of the contract end date will be processed in accordance with the previously established procedures.
C.7.8 Complete annual Contractor Performance Report based on standard evaluation criteria (such as quality of product or service; timeliness of performance; and business relations) used throughout the Agency.
C.7.9 Provide a hyperlink from the IRS Web Site to the Contractor’s Web Site. IRS may identify participating partners in its information materials or products. All decisions involving these or other marketing decisions will be solely at the discretion of the IRS.
C.8 KEY PERSONNEL
C.8.1 CONTRACTOR’S KEY PERSONNEL
Key personnel are those contractor personnel considered to be essential to the performance of the contract. The Contractor’s Program Manager as described in Section 2.1, is designated as key, and may only be replaced with the approval of the Contracting Officer, in accordance with the terms and conditions of C.8.2, entitled, “SUBSTITUTION OF KEY PERSONNEL”.
C.8.2 SUBSTITUTION OF KEY PERSONNEL

Page - 37


 

The Contractor shall notify the Contracting Officer and COTR, prior to making any changes to key personnel. No changes in key personnel will be made unless the Contractor can demonstrate that the qualifications of prospective replacement personnel are equal to or better than qualifications of the key personnel being replaced. All proposed substitutes shall have qualifications equal to or better than the person being replaced. The CO shall be notified in writing of any proposed substitution at least 15 days or 30 days if a Security Clearance is obtained in advance of the proposed substitution.
C.9 DELIVERABLES
The Contractor shall submit the following deliverables in accordance with C.2 Contract Requirements and C.10 Schedule of Performance. All deliverables will be submitted electronically. Documentation formatting and contents are subject to inspection, verification and approval by the Contracting Officer’s Technical Representative (COTR) and/or IRS representative.
Deliverables Summary:
Electronic Payments
Monthly Development Status Reports
Daily Transaction Reports
Monthly Transaction Reports
Chargeback Reports (If Applicable)
Exception Handling Reports
Ad Hoc Reports
Findings Reports
Marketing Reports
Capacity Analysis
System Security Plan
Security Features Users Guide
Configuration Management Plan
Risk Assessment Plan
Disaster Recovery Plan
Network Design and Architecture Schematic
Trusted Facility Manual (System Administrator Manual)
Process and Data Flow Schematic
Funds Settlement Timeline
System Development Life Cycle
Test Plans, Test Cases and Test Results (including test data output reports)
Functional Requirements/User Interface Documentation (as applicable)
Scripts, User Interface Screens and General User Information Materials
Work Breakdown Structure/Schedule (as described in C.2 and C.10)
Incident Reports (as described in C.2)
C.9.1 ELECTRONIC PAYMENTS
The required data fields for each tax payment include (See also, the Credit Card Bulk Provider Requirements document):
7   a nine character Taxpayer Identification Number [first social security number (SSN) as
    shown on the tax return for the year for which the payment applies or the employer identification number (EIN)],

Page - 38


 

 
8   four character name control (provided to Contractor in the entity validation response file, 824 transaction set),
 
9   payment type,
 
10   tax period ending date (six character date field),
 
11   payment amount,
 
12   payment authorization date,
 
13   daytime telephone number, and
 
14   confirmation number.
C.9.2 MONTHLY DEVELOPMENT STATUS REPORTS
Upon the commencement of initial requirements meeting through the implementation date, the Contractor shall provide monthly development reports by the 5th day of each month. The report shall be provided to the Contracting Officer’s Technical Representative (COTR). The report shall contain the following information:
3   date of report,
 
4   project manager name,
 
5   project manager telephone number, fax number and e-mail address,
 
6   a brief description of the work accomplished, emphasizing the progress made since the last reporting period,
 
7   a description of any unresolved and/or anticipated problems, if any (include schedule impacts),
 
8   an estimate of the percent of work accomplished to date, and
 
9   a statement on the status of the program as it relates to the work breakdown schedule, either confirming that milestones are on schedule or explaining the nature and extent of the pending delay.
C.9.3 DAILY AND MONTHLY TRANSACTION REPORTS
The Contractor shall provide daily and cumulative monthly transaction reports. The reports shall cover the post-implementation progress of the program. Daily reports shall be provided no later than 9:00 am Eastern Time and should include all prior day transactions and cumulative data. Monthly reports shall be provided by the 5th day of each month and include all prior month transactions cumulative data and reconcile any adjustments made during that month. The report shall be provided to the Contracting Officer’s Technical Representative (COTR). The report shall contain the following information:
4.   date of report,
 
5.   period covered,
 
6.   total number of transactions,
 
7.   dollar amount of transactions,
 
8.   total number of successful (authenticated) attempts,
 
9.   dollar amount of successful (authenticated) attempts,
 
10.   volume by tax type,
 
11.   dollars by tax type,

Page - 39


 

12.   volume by card type,
 
13.   dollars by card type
 
14.   average payment amount,
 
15.   largest dollar payment amount,
 
16.   total number of failed (unauthenticated) attempts, abandoned or incomplete transactions,
 
17.   reasons for failed (unauthenticated) attempts,
 
18.   customer service activity,
 
19.   report of entity rejects, where the user has provided invalid entity information,
 
20.   aggregate payment volumes by payment type and dollar amount shall be provided daily, and
 
21.   historical data should also be provided to compare changes in volumes from the prior year.
C.9.4 CREDIT CARD CHARGEBACK REPORTS (IF APPLICABLE)
The Contractor shall provide weekly reports of all credit card chargeback actions identifying the transaction date, dollar amount, action request date, and reason for action. These actions shall be in conformance with chargeback procedures issued by the IRS and meet the definition of chargebacks provided by the Contractor and agreed to by the IRS. These reports shall be sent to the designated IRS point of contact (POC) and the COTR by close of business each Friday. Additionally, the Contractor shall be responsible for monitoring for trends or patterns of suspicious activity and reporting this information to the COTR.
C.9.5 EXCEPTION HANDLING REPORTS
The Contractor shall provide a monthly report of transactions requiring exception handling such as payments requiring manual correction due to the entry of an erroneous taxpayer identification number (SSN/EIN) or tax year/tax period. The report shall be provided by the 5th day of each month. The report shall be provided to the Contracting Officer’s Technical Representative (COTR).
C.9.6 AD HOC REPORTS
The Contractor shall provide ad hoc reports as necessary. Ad hoc reports may include but are not limited to reporting information that supports or further defines incident reports where payment transactions are delayed or otherwise impacted. Incident reports should be provided as described in C.2.The report shall be provided to the Contracting Officer’s Technical Representative (COTR).
C.9.7 FINDINGS REPORT
The Contractor shall provide an initial and supplemental findings report. A copy of the report shall be provided to the Contracting Officer’s Technical Representative (COTR) and the IRS Senior Manager or his/her designee. The report shall describe:
a.   The program features,
 
b.   conduct and findings of the program as they relate to the Contractor’s and any subcontractor’s performance (including a summary of all payment transactions, special features such as Spanish language, recurring payments and payment reminders, any problems, changes made during the filing season and lessons learned),

Page - 40


 

c.   recommendations for improvement including changes to the Contractor’s and/or IRS processes,
 
d.   practitioner and/or client feedback including customer satisfaction survey results,
 
e.   customer service activity based on automated and live assistance provided; and
 
f.   summary of trends or patterns of suspicious activity.
The initial report shall include activity occurring between January 1 and April 30 (each year). The supplemental report shall be submitted which includes a summary of the initial report’s findings and activity from May 1 through December 31 (each year). See Schedule of Performance for due dates.
C.9.8 MARKETING REPORTS
The Contractor shall provide an initial and supplemental marketing report in conjunction with the Findings Reports described above. The reports shall contain a narrative description of (1) accomplishments; (2) cooperative marketing stats including the number of unique visits to and from the Contractor’s Web site by way of a hyperlink established with the IRS; and (3) measurement of success (for example, number of unique taxpayers that electronically pay as a result of the marketing campaign and special offers). The initial report shall include activity occurring between January 1 and April 30 of each year during the life of the contract. The supplemental report shall include a summary of the initial report’s findings and activity from May 1 through December 31 (each year).
C.9.9 CAPACITY ANALYSIS
The Contractor shall provide an assessment of the level of storage and transaction processing capability of the computer system/network.
C.9.10 SYSTEM SECURITY PLAN
The Contractor shall provide a description of procures that address computer and data security. The intent of these procedures is to ensure the integrity, availability, appropriate access, and appropriate use of data and systems within the group. Plan should address system integrity, data integrity, access controls, handling of sensitive data (if any), incident reporting, training and continuity of operation.
The system security plan should:
a. Provide an overview of the security requirements of the system and describe the controls in place or planned for meeting those requirements
b. Identify responsibilities and expected behavior of all individuals who access the system
c. Serve as documentation of the structured process of planning adequate, cost-effective security protection for a system
The system security plan should identify and define in detail:
a. The processing environment (Components of the system, Major application or General Purpose)
b. The sensitivity of the information processed, transmitted and/or stored (Confidential, Secret, Top Secret, Classified, Unclassified but Sensitive, etc.) and why it is classified as such (SSN data, Credit Card data, etc.)
c. The laws and regulations pertaining to the system (OMB A-130, Privacy Act, etc.)
d. Identify management, operational, and technical controls
e. Identify plans for testing the security controls
f. Procedures for providing access to users

Page - 41


 

g. Identify an Incident Response Plan
h. Identify Security and Awareness Training Plans
i. Management commitment and approval (authorization to operate)
C.9.11 SECURITY FEATURES USER GUIDE
The Contractor shall provide information describing security mechanisms and features used to protect applications.
The Security Features Users Guide should identify:
a. Explanation of how the security mechanisms in a specific system work, so that users are able to consistently and effectively use them
b. Identify Behavior of Rules or Acceptable Use policy w/signature requirements (users responsibilities)
c. Identify security related commands for users (i.e., changing passwords, reporting incidents, etc.)
d. Identify groups and their associated privileges
e. Identify where users can obtain additional information concerning their system(s)
f. Management commitment and approval (authorization to operate)
C.9.12 CONFIGURATION MANAGEMENT PLAN
The Contractor shall provide a description of the process of identifying and defining the items in the system, controlling the change of these items throughout their lifecycle, recording and reporting the status of items and change requests, and verifying the completeness and correctness of items.
Configuration Management Plan should identify:
a. Configuration Identification — Baselines established for the project/system, the components and documentation that comprise the system
b. Configuration Control Procedures — Procedures for controlling the preparation and dissemination of change request to documentation, system components, or software; procedures for considering the impact for the requested modification
c. Configuration accounting to include audits
d. Problem reporting and corrective actions to include a back-out plan
e. A description of the tools, techniques and methodologies used
f. Management commitment and approval (authorization to operate)
C.9.13 RISK ASSESSMENT PLAN
The Contractor shall provide an assessment of the vulnerabilities and threats to the organization’s information resources and infrastructures in achieving business objectives and deciding what counter measures to take in reducing risk to an appropriate acceptable level.
A Risk Assessment Plan should address/identify:
a. Internal and external threats to the integrity, confidentiality, and availability of systems and data supporting critical operations and assets
b. Policies and procedures that are based on the risk assessments associated with the operations and assets for programs and systems that cost-effectively reduce information security risks to an acceptable level and ensure compliance with prescribed policies and procedures, and applicable requirements
c. Security awareness training to inform personnel of information security risks associated with the activities of personnel and responsibilities of personnel in complying with agency policies and procedures designed to reduce such risks
d. Periodic management testing and evaluation of the effectiveness of information security policies and procedures
e. A process for ensuring remedial action to address any significant deficiencies

Page - 42


 

f. Procedures for detecting, reporting, and responding to security incidents, including mitigating risks associated with such incidents before substantial damage occurs, notifying and consulting with the appropriate law enforcement officials and other offices and authorities
g. Appropriate reporting to proper authorities (IRS or other) of weaknesses and remedial actions
h. Management commitment and approval (authorization to operate)
C.9.14 DISASTER RECOVERY PLAN
The Contractor shall provide a description of the resources, actions, tasks and data required to manage the business recovery process in the event of a business interruption. The plan is designed to assist in restoring the business process within the stated disaster recovery goals.
The Disaster Recovery Plan should identify:
a. The priorities, resources, and procedures necessary to ensure that essential operational tasks can be continued after disruption to a system
b. Identify the backup site
c. Scheduled test and results
d. Management commitment and approval (authorization to operate)
C.9.15 NETWORK DESIGN AND ARCHITECTURE SCHEMATICS
The Contractor shall provide a diagram of the e-payment system of both the primary and back-up sites.
The diagram must include all access points, firewalls, routers, switches, hubs, email servers, database servers, IDS, IPS, etc
C.9.16 TRUSTED FACILITY MANUAL
The Contractor shall provide a description of how to configure and install a specific secure system, operate the system in a secure manner, and make effective use of the system privileges and protection mechanisms to control access to administrative functions and databases.
The Trusted Facility Manual should identify:
  a.   Provides specific guidance to administrators on how to configure and install the system
 
  b.   How to administer and operate the system in a secure manner
 
  c.   How to avoid risks and improper use of administrative functions that would compromise the system
 
  d.   Procedures for examining and maintaining the audit files as well as the detailed audit record structure for each type of audit shall be given
 
  e.   Management commitment and approval (authorization to operate)
C.9.17 PROCESS AND DATA FLOW SCHEMATIC
The Contractor shall provide detailed description of the user’s experience when interacting with the e - payment application(s) from beginning to end — describe activities in each step.
C.9.18 FUNDS SETTLEMENT TIMELINE
The Contractor shall provide a funds settlement timeline — detailing path of funds from authorization to ACH debit from bulk account.
C.9.19 SYSTEM DEVELOPMENT LIFE CYCLE
The Contractor shall provide a description of the stages involved in the information system development project, from an initial feasibility study through maintenance of the completed application.

Page - 43


 

C.9.20 TEST PLANS, TEST CASES AND TEST RESULTS
The Contractor shall provide all security and privacy and functional application test plans, test cases and results.
C.9.21 FUNCTIONAL DOCUMENTATION — SCRIPTS, SCREENS, CALL FLOWS, USER GUIDES, ETC.
The Contractor shall provide all necessary documentation for the functional applications; i.e. IVR scripts, call flow diagrams, web documentation (i.e. screen shots), business rules, user guides, etc.
C.9.22 REFERENCE:
Public Laws
1) Public Law 93 – 579, Privacy Act of 1974, as Amended
2) Public Law 97 – 255, Federal Managers’ Financial Integrity Act (FMFIA) of 1982
3) Public Law 99 – 474, The Computer Fraud and Abuse Act of 1986
4) Public Law 100 – 235, Computer Security Act of 1987
5) Public Law 104 – 13, Paperwork Reduction Act of 1995
6) Public Law 104 – 106, Clinger-Cohen Act of 1996
7) Taxpayer Browsing Protection Act of 1997
8) Public Law 106 – 398, FY 2001 Defense Authorization Act, October 30, 2000
Information on Public Laws is available at: http://thomas.loc.gov
Executive Orders
1) Executive Order 13010: Critical Infrastructure Protection, July 15, 1996
2) Executive Order 13011: Federal Information Technology, July 16, 1996
Presidential Decision Directive
Presidential Decision Directive (PDD) 63, Critical Infrastructure Protection, May 22, 1998
Office of Management and Budget (OMB)
1) OMB Circular No. 109, Major Systems Acquisition, April 4, 1976
2) OMB Circular No. A-123, Management Accountability and Control, July 21, 1995
3) OMB Circular No. A-127, Financial Management Systems, July 23, 1993
4) OMB Circular No. A-130, Management of Federal Information Resources, February 8, 1996
OMB Memorandum
1) M-99 – 18: Privacy Polices on Federal Web Sites, June 2, 1999
2) M-99 – 20: Security of Federal Automated Information Resources, June 23, 1999
3) M-00 – 07: Incorporating and Funding Security in Information Systems Investments, September 28, 2000
Federal Regulation
Federal Information Resources Management Regulation (FIRMR)
Department of Treasury
1) Department of Treasury Information System Life Cycle Manual TD P 84-01, July 1994
2) Department of the Treasury Security Manual TD P 71-10, August 23, 1999
3) Department of Treasury Information Technology Manual TD P 81-01, August 2001
Treasury Memorandum & IRS Documentation
TBD

Page - 44


 

Internal Revenue Manuals (IRMs)
TBD
General Accounting Office (GAO)
1) Executive Guide on Information Security Management, May 1998
2) Information Security Risk Assessment, Practices of Leading Organizations, November 1999
3) Federal Information System Control Audit Manual (FISCAM), January 2000
The GAO Publications noted above are available on GAO website: http://gao.gov
National Institute of Standards and Technology (NIST) Special Publications (SP) 800 Series website: http://csrc.nist.gov
C.10 SCHEDULE OF PERFORMANCE
The Contractor shall provide a project plan (WBS) for system and application development which shall include the events and dates listed in the chart below. The dates are tentative and must be coordinated with the COTR and IRS’s representative authorized to perform the system security and functional application testing (IV&V). The timeframes may be modified under the COTR’s direction and will be updated annually as contract option years are exercised.
         
Responsible   Event   Anticipated
Party       Due Dates
Contractor
  Provide UNAX briefing documentation   04/10/2009
 
All
  Annual Requirements Review for FS 2010   04/20/2009
 
Contractor
  Provide draft WBS (including requirements, development, testing and implementation phases)   05/11/2009
 
IRS
  Provide comments on draft WBS   05/18/2009
 
Contractor
  Deliver base lined WBS   06/01/2009
 
 
  Deliver Initial Functional Requirements/User Interface    
 
Contractor
  Documentation and workflow schematics; including scripts, web text & screen shots, business rules, etc.   06/08/2009
 
IRS
  Provide initial comments on draft Functional Documentation (iterative process)   06/22/2009
 
Contractor
  Obtain signed contracts with other participating subcontractors, if applicable   06/30/2009
 
Contractor
  Deliver Transaction Processing Network Documentation   07/20/2009
 
Contractor
  Deliver Final Functional Requirements/User Interface Documentation   08/17/2009
 
IRS
  Final Sign Off on Functional Requirements/User Interface
Documentation
  08/21/2009
 
Contractor
  Deliver Trusted Facility Manual   08/24/2009
 
Contractor
  Deliver Final Test Plans and Test Cases   08/31/2009
 
Contractor
  Begin internal application testing   09/07/2009
 
Contractor
  Deliver FS 2010 Marketing Plan   09/21/2009
 
IRS
  Provide comments on Marketing Plan   09/28/2009
 
IRS
  Provide revised credit card chargeback procedures, if applicable   10/05/2009
 
Contractor
  Complete internal application testing   10/30/2009

Page - 45


 

         
Responsible   Event   Anticipated
Party       Due Dates
Contractor
  Begin full circle integrated test with IRS/TFA (subject to change)   11/02/2009
 
Contractor
  Complete full circle integrated test with IRS/TFA (subject to change)   11/13/2009
 
Contractor
  Complete all testing and obtain bulk provider certification from TFA   12/07/2009
 
Contractor
  Implement Electronic Payment Services for FS 2010   01/01/2010
 
IRS
  Provide hyperlink from the IRS web site to the Contractor’s Web page   01/08/2010
 
Contractor
  Deliver Initial FS 2010 Findings Report   06/01/2010
 
Contractor
  Deliver Initial FS 2010 Marketing Report   06/01/2010
 
Contractor
  Deliver Supplemental FS 2010 Findings Report   02/01/2011
 
Contractor
  Deliver Supplemental FS 2010 Marketing Report   02/01/2011
Note: Most payment options will be available to taxpayers year-round beginning January 1.
C.11 INSPECTION AND ACCEPTANCE
Inspection and acceptance of all work performed under this contract shall be by the COTR or a duly authorized representative.
C.11.1 REVIEW OF REPORTS AND RECORDS
1. The Government will conduct a review of all required reports and records for completeness, correctness and compliance with the requirement of the contract. If the Government determines that there are omissions, errors or deficiencies, the Government will notify the Contractor of such deficiencies within ten (10) days from date of receipt.
    The Service Provider shall make the necessary modifications that will allow the Government to accept the final product within five (5) days from date of notification.
C.12 PUBLIC RELEASE OF INFORMATION
(1) The Contractor shall obtain the written permission of the IRS Senior Manager or COTR before releasing or using any information regarding the Contractor’s selection for, or performance of work on, this contract. Information including, but not limited to, advertisements, unclassified speeches, articles, press releases, presentations, displays or demonstrations developed or proposed for release to the public must be submitted in their entirety to the Senior Manager or COTR. The Contractor shall request, in writing, permission to release information describing the scope of the information to be released and the purpose for its release. This clause does not affect the Contractor’s rights with regard to patents, which are governed by the patent clauses of this contract. This clause shall apply to parent companies and subcontractors at any tier.
(2) The Contractor shall not impose limitations on the use of any information or data, or any portion thereof, which has been published in any form or is otherwise generally available in the

Page - 46


 

public domain.
(3) The Contractor in publicizing its selection for, or its performance of work on, this Contract shall not state or imply that the Government endorses or warrants its products or services.Information publicized shall clearly indicate that the taxpayer’s decision to use any of the Contractor’s products or services will not result in any special treatment from the Internal Revenue Service. This clause shall apply to parent companies and subcontractors at any tier.
(4) In the event of a termination for the convenience of the Government, the Government shall be responsible for press releases, jointly prepared with the Contractor, declaring the termination of the program by the Government. Such releases shall be placed where determined by the contractor, except that the Government reserves the right to either place such releases itself in a reasonable number of news media or paying for the Contractor’s placement of such releases. The Government shall consider the Contractor’s reasonable request for the number of news media to receive such releases. The Government shall also consider the Contractor’s reasonable request that it not issue a public release or public announcement of the termination of the Contract for the Government’s convenience.

Page - 47


 

Attachment 3
LIST OF APPENDICES
         
Appendix
No.
  Title   Double
        click
        to
        open file
A.
  FAR 2.101 — Definition Of A Commercial Item   (PDF LOGO)
 
       
B.
  2009 Credit Card Bulk Provider Requirements   (PDF LOGO)
 
       
C.
  Treasury Regulations 301.6311-2
Payment by Credit Card or Debit Card
  (PDF LOGO)
 
     

Page - 48


 

FAR 2.101 — Definition of Commercial Item   Attachment 3, Appendix A
     “Commercial component” means any component that is a commercial item.
     “Commercial item” means—
         (1) Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and—
(i) Has been sold, leased, or licensed to the general public; or
(ii) Has been offered for sale, lease, or license to the general public;
         (2) Any item that evolved from an item described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;
         (3) Any item that would satisfy a criterion expressed in paragraphs (1) or (2) of this definition, but for—
              (i) Modifications of a type customarily available in the commercial marketplace; or
              (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. Minor modifications means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;
         (4) Any combination of items meeting the requirements of paragraphs (1), (2), (3), or (5) of this definition that are of a type customarily combined and sold in combination to the general public;
         (5) Installation services, maintenance services, repair services, training services, and other services if—
              (i) Such services are procured for support of an item referred to in paragraph (1), (2), (3), or (4) of this definition, regardless of whether such services are provided by the same source or at the same time as the item; and
              (ii) The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government;
         (6) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard

 


 

FAR 2.101 — Definition of Commercial Item   Attachment 3, Appendix A
commercial terms and conditions. This does not include services that are sold based on hourly rates without an established catalog or market price for a specific service performed or a specific outcome to be achieved. For purposes of these services—
               (i) “Catalog price” means a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or vendor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and
               (ii) “Market prices” means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors.
         (7) Any item, combination of items, or service referred to in paragraphs (1) through (6) of this definition, notwithstanding the fact that the item, combination of items, or service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or
         (8) A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments.

 


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
CREDIT
CARD
(GRAPHIC)
BULK
PROVIDER
REQUIREMENTS
Revised 03/05/08

1


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Nature of Changes
                 
Date/Version   Page   Paragraph   Change Description
03/05/2008 v7
  74-78, 112         Annual Updates – addition of five tax types for stand- alone payments.
03/05/2008
  103         Update to Federal Reserve Holiday Schedule
Revised 03/05/08

2


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TABLE OF CONTENTS
         
    Page  
1. General Interest Items
       
A. EFTPS Bulk Provider Registration
    5  
B. Letter of Agreement
    8  
C. Project Schedules
    9  
D. Customer Service
    13  
 
       
2. Specific Processing Requirements
       
A. EDI Translation Status
    14  
B. IRS Entity Validation (Direct Credit Card Payments only)
    18  
C. Payments
    19  
D. Testing Plan
    20  
 
       
3. Telecommunications Concerns
       
A. Data Transmission Specifications
    29  
B. Telecommunication Set-Up
    30  
C. Disaster Recovery
    31  
D. Bulk Provider Disaster Recovery Plan
    32  
 
       
4. EDI Record Formats
       
A. General
    33  
B. Chapter 3 - Taxpayer Entity Validation
    34  
C. Chapter 4 - ACH Bulk Debits
    60  
D. Chapter 9 – Return and Exception Item Reporting
    93  
E. Chapter 10 – Daily Operations Procedures
    101  
 
       
5. IRS Requirements for Integrated File and Pay CC Processors
    104  
Credit Card Bulk Provider Registration
    111  
Credit Card Bulk Provider Agreement
    112  
Revised 03/05/08

3


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
1.   General Interest Items
TREASURY FINANCIAL AGEMENT (TFA) CONTACT LIST
To be provided upon registering with the Treasury Financial Agent
Revised 03/05/08

4


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
  A.   EFTPS BULK PROVIDER REGISTRATION
1.   Each Credit Card Bulk Provider must complete the standard EFTPS Business Enrollment form (IRS Form 9779) and the attached “TRADING PARTNER REGISTRATION FORM”. The Treasury Financial Agent (TFA) will use the enrollment and Registration forms to initially set up the Credit Card Bulk Provider on the Electronic Federal Tax Payment System (EFTPS) and to track activity. The completed forms will be mailed to the address provided by the TFA.
 
2.   In the Integrated File and Pay Credit Card Program, a balance due return is associated with an accepted e-file return. The approved credit card payment must wait for the acceptance of the e-file return. Upon acceptance of the e-file return, the credit card payment can be submitted using the Credit Card Bulk Provider Requirements and the approved entity and tax identifying information accepted by the IRS. In order to use this program, the credit card bulk provider must annually register with the IRS and sign an agreement indicating the company’s adherence to the IRS requirements. In addition, the bulk provider must register and test with the assigned Treasury Financial Agent. For subsequent years, the bulk provider must annually test with the TFA to be recertified. All testing is required to be completed and certification to be submitted by December 28 of each year. If December 28 falls on a Saturday or Sunday, the preceding workday will be the due date.
 
3.   For stand-alone credit card programs, the IRS requires a proposal to be submitted in reference to an IRS Request for Proposal. The IRS will issue contract awards based on the best solutions for increasing e-file and electronic payment volumes.
Revised 03/05/08

5


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TRADING PARTNER REGISTRATION FORM
Company Profile
     
 
Company Name — Your corporate name (up to 30 characters).
   
 
   
 
   
 
Address (up to 30 characters)
   
             
 
           
 
           
City
  State   Zip   Country
     
 
   
 
   
Business Unit — Your division name (up to 30 characters)
  Business Hours
Describing a specific business unit under the company name.
   
EDI Envelope Information
     
 
   
 
   
Interchange Receiver ID (up to 15 characters)
  Function group ID (up to 15 characters)
Communications Contact
The person at your company that will be our ongoing contact for communications issues and concerns.
         
 
       
 
       
Communications Contact Name
  Title   Phone (xxx-xxx-xxxx)
(Up to 30 characters)
  (Up to 30 characters)    
EDI Contact
The person at your company that will be our ongoing contact for EDI translation issues and concerns.
         
 
       
 
       
EDI Contact Name
  Title   Phone (xxx-xxx-xxxx)
(Up to 30 characters)
  (Up to 30 characters)    
Revised 03/05/08

6


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
GENERAL INFORMATION
         
Please list the following:
       
 
       
Hardware Platform:
 
 
   
 
       
Operating System:
 
 
   
 
       
Database:
 
 
   
 
       
Communications Software Protocol:
 
 
   
 
       
Translator:
 
 
   
 
       
Dedicated or Dial Up Connection
 
 
   
 
       
Type of Modem:
 
 
   
 
       
Modem Speed:
 
 
   
 
       
Production site area code and exchange number:
 
 
   
 
       
Disaster recovery site area code and exchange number:
 
 
   
 
       
Company business hours:
 
 
   
 
       
Contact name:
 
 
   
 
       
Contact Business Hours:
 
 
   
 
       
Contact Telephone Number:
 
 
   
Revised 03/05/08

7


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
B.   LETTER OF AGREEMENT
A signed letter of agreement is required to be on file with the Treasury Financial Agent (TFA) before live entity validation and/or payments can begin. The letter of agreement will be provided by the TFA and will be signed and returned based on instructions from the TFA.
Note: The letter of agreement will contain a statement that:
“Every taxpayer for whom the Credit Card Bulk Provider will be submitting Electronic Federal Tax Payment System payments will have certified that the credit card processor is authorized to process the payment and to exchange information with the IRS necessary to process the payment.”
Revised 03/05/08

8


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
C. PROJECT SCHEDULES
BULK PROVIDER & TREASURY FINANCIAL AGENT
DEVELOPMENT SCHEDULE
                         
    TARGET     TARGET        
PHASE   START DATE     END DATE     STATUS  
EDI SOFTWARE INSTALLATION
                       
BUSINESS SYSTEM DESIGN
                       
ENTITY VALIDATION (Required for Credit Card processors who are contacted directly by the taxpayer)
DETAIL DESIGN
DEVELOPMENT
SYSTEM TEST
ACCEPTANCE TEST
BULK PROVIDER TESTING
LIVE ENTITY VALIDATION
DEBIT PAYMENTS
DETAIL DESIGN
DEVELOPMENT
SYSTEM TEST
ACCEPTANCE TEST
BULK PROVIDER TESTING
LIVE DEBIT PAYMENTS
Revised 03/05/08

9


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TREASURY FINANCIAL AGENT TESTING SCHEDULE
BULK PROVIDER Name                                          
         
    Earliest Available   Expected
    Start Date   Start Date
 
       
TELECOMMUNICATION
 
 
 
 
 
       
ENTITY VALIDATION
 
 
 
 
(Entity Validation for Name Control)
       
 
       
DEBIT PAYMENT
 
 
 
 
Note: Allow a minimum of 2 weeks testing for each subsystem
Revised 03/05/08

10


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
FINANCIAL AGENT ENTITY VALIDATION PROCESS SCHEDULE
(For Credit Card Transactions Initiated Directly by Taxpayers)
BULK PROVIDER NAME                                                             
DESCRIPTION OF VALIDATION APPROACH

 

 

 

 

 

 
         
         
EXPECTED START DATE
 
 
   
 
       
EXPECTED END DATE
 
 
   
 
       
NUMBER OF TRANSMISSIONS
 
 
   
 
       
FREQUENCY
 
 
   
Revised 03/05/08

11


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
TFA PAYMENT LIVE DATES
BULK PROVIDER NAME                                                             
The following prerequisites must be complete prior to the live date.

Financial Agent testing completed
Signed Letter of Agreement Trading
Partner Registration Form
         
Payment Method
  Bulk Debit
 
   
 
       
Expected Live date
 
 
   
 
 
 
   
Expected Initial Volume
 
 
   
 
 
 
   
Expected Frequency
 
 
   
 
 
 
   
Expected Growth
 
 
   
 
 
 
   
Revised 03/05/08

12


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
D.   CUSTOMER SERVICE
 
1.   The EFTPS support staff hours for Credit Card Bulk Providers are from 8:30 a.m. ET to 8:00 p.m. ET, Monday through Friday. It is imperative that all calls regarding operational concerns come through the Bulk Provider Customer Service line.
 
2.   EFTPS needs to know the business hours of all Bulk Providers. Please be prepared to exchange this information at the time of the individual conference calls.
 
3.   The Bulk Provider procedures for inquiring about an entity validation file and/or payment are as followed
  STEP 1.     Do not automatically resubmit the entity validation and /or payment.
 
  STEP 2.    Call Customer Service at the toll free 800 number to check on the status of the entity validation and/or payment.
 
  STEP 3.    The Customer Service Center will be able to give status information on the entity validation and/or payment by looking to our Customer Service Application Database.
Revised 03/05/08

13


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
2.   SPECIFIC PROCESSING REQUIREMENTS
  A.   EDI TRANSLATION
1.   If you are using an EDI translation software package, review where you are in the implementation process for the initial review conference call.
 
2.   If you are doing your own EDI development, review your intended support of all EFTPS transaction sets. (NOTE: We continue to recommend that you purchase EDI translation software. Historically, in-house development of EDI translators have elongated the testing process for EDI newcomers, and complications may jeopardize your live date.)
 
3.   Note that all data must be compliant with the 3050 version of the ANSI x12 EDI standards. To obtain a copy of the standards, visit www.ANSI.org. There is a cost.
 
4.   Updates to new versions of the ANSI Standard will be reviewed as they become available. If EFTPS determines that the new standard will be utilized the change control procedures will be followed.
  a.   Six months notice will be given prior to implementing a new standard.
 
  b.   Old standards will be supported for a minimum of 6 months following the implementation of a new standard.
5.   Review shared understanding of the contents of the ISA and GS segments (see attached). (e.g. — potential use of EINs or Dunn’s numbers for Sender and Receiver IDs)
 
6.   Bulk provider must verify that they use EFTPS EDI standards
  A.   The tilde “~” as a data element separator.
 
  B.   The backslash “\” as a segment separator.
 
  C.   The greater than sign “>” as a sub-segment separator.
Revised 03/05/08

14


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
ISA SEGMENT—INTERCHANGE CONTROL SEGMENT — INCOMING TO THE TREASURY
FINANCIAL AGENT
                             
    REF.       Req.   Elem.   Elem.    
Element   Nmbr   Name   Desig   Type   Length   Comments
ISA01
  I01   Authorization Information Qualif.   M   ID   2/2   00    
 
                           
ISA02
  I02   Authorization Information   M   AN   10/10   blanks
 
                           
ISA03
  I03   Security Information Qualifier   M   ID   2/2   00    
 
                           
ISA04
  I04   Security Information   M   AN   10/10   blanks
 
                           
ISA05
  I05   Interchange ID Qualifier   M   ID   2/2   determined by bulk provider
 
                           
ISA06
  I06   Interchange Sender ID   M   AN   15/15   determined by bulk provider
 
                           
ISA07
  I05   Interchange ID Qualifier   M   ID   2/2   to be provided by TFA
 
                           
ISA08
  I07   Interchange Receiver ID   M   AN   15/15   to be provided by TFA
 
                           
ISA09
  I08   Interchange Date   M   DT   6/6   current date
 
                           
ISA10
  I09   Interchange Time   M   TM   4/4   current time
 
                           
ISA11
  I10   Interchange Control Standards ID   M   ID   1/1   U    
 
                           
ISA12
  I11   Interchange Control Vers. Number   M   ID   5/5   to be provided by TFA    
 
                           
ISA13
  I12   Interchange Control Number   M   N0   9/9   determined by bulk provider*
 
                           
ISA14
  I13   Acknowledgment Requested   M   ID   1/1   0    
 
                           
ISA15
  I14   Test Indicator   M   ID   1/1   ‘T’ or ‘P’
 
                           
ISA16
  I15   Component Element Separator   M   AN   1/1   >
 
*   This number will be validated in duplication checks and must be unique.
Revised 03/05/08

15


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
GS SEGMENT — FUNCTIONAL GROUP HEADER — INCOMING TO THE TFA
                                 
    REF.       Req.   Elem.   Elem.    
Element   Nmbr   Name   Desig   Type   Length   Comments
GS01
    479     Functional Identifier Code   M   ID   2/2   838 = TD, 813 = TF
 
                               
GS02
    142     Application Sender’s Code   M   AN   2/15   To be provided by the TFA
 
                               
GS03
    124     Application Receiver’s Code   M   AN   2/15   To be provided by the TFA
 
                               
GS04
    373     Date   MIZ   DT   6/6   current date
 
                               
GS05
    337     Time   MIZ   TM   4/8   current time
 
                               
GS06
    28     Group Control Number   MIZ   N0   1/9   determined by bulk provider *
 
                               
GS07
    455     Response Agency Code   M   ID   1/2   X    
 
                               
GS08
    480     Version/RIs/Industry ID Code   M   AN   1/12   003050    
 
*   This number will be validated in duplication checks and must be unique.
Revised 03/05/08

16


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
GE SEGMENT
FUNCTIONAL GROUP TRAILER
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
GE01
    97     Number of Transaction Sets Inc.   M   N0   1/6    
GE02
    28     Group Control Number   MIZ   N0   1/9   (Must = GS06)
IEA SEGMENT
INTERCHANGE CONTROL TRAILER
                         
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
IEA01
  I16   Number of Included Funct Group   M   N0   1/5    
IEA02
  I12   Interchange Control Number   M   N0   9/9    
Revised 03/05/08

17


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
B.   ENTITY VALIDATION (Direct Taxpayer Contact with Credit Card Processor Only)
Credit Card Bulk Providers are required to include taxpayer name control and zip code in the payment file sent to IRS. If the credit card transaction is initiated through an e-file service, the entity is validated upon receipt of the e-file confirmation.
Credit card processors who have been contacted directly by the taxpayer must initiate an entity validation process through the EFTPS financial agent to validate the taxpayer’s identity and obtain the name control and zip code.
1.   Review the entity validation process. The entity validation process is located in the EFTPS User Requirements document.
 
    New requests needing IRS validation in order to obtain name control can be transmitted daily along with the payment files for previously validated taxpayers.
 
2.   Review of the bulk provider entity validation error codes (see the below list).
EFTPS BULK PROVIDER ENTITY VALIDATION ERROR CODES
         
Error Codes   Description   Comments
 
0005
  TIN mismatched.   IRS Critical Error
Revised 03/05/08

18


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
  C.   PAYMENTS
All credit card payments to IRS are initiated through the bulk debit procedures.
1)   Transmission Schedules:
  a)   The deadline for processing debit payments is 7:00 p.m. ET on the calendar day prior to settlement day. (Note: If a bulk provider wants to send in a file on Saturday or Sunday, they must communicate with the FA during normal business hours.)
 
  b)   Settlement will occur on banking days only, Monday through Friday, excluding holidays.
2)   Rejects:
  a)   The FA will provide you with complete payment reject codes and conditions. A few possible reasons are:
  1)   No name control
 
  2)   Dollar amount over $99,999,999.99 per transaction set (1,000 payments)
 
  3)   File format error
3)   Returns:
The process for handling returns of debits will start with the Receiving Depository Financial Institution (RDFI) sending EFTPS a valid return reason code such as NSF or Uncollected Funds. Note: The RDFI must adhere to NACHA rules regarding returns. Next, EFTPS will send the bulk provider a transaction set 827 that contains return reason information. EFTPS must send this transaction set 827 within 24 hours of the return settling.
4)   Duplicate File
A duplicate file is one in which the ISA & GS control numbers are not unique. If a duplicate file is received by the TFA then the EDI translator will reject it and the bulk provider will receive a negative 997 functional acknowledgment.
However, if a file has unique ISA and GS control numbers, then the file will not be rejected and any previously processed payments will be processed again. Resolution will need to come from the IRS directly. EFTPS does not have the capability to initiate a reversal of debit payment transactions.
Revised 03/05/08

19


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
     D. TESTING PLAN
     Below is a general test plan which should be used only as a guide to what will be expected. The final test plan will be provided by the bulk provider.
EDI Transmission Test
     Two Files
Valid
Invalid
Entity Validation Test
     Valid X12 Format/Entity Validation
     Invalid X12 Format
Syntax
Duplicate Control Numbers
     Invalid Entity Validations
     Volume — 50% of Expected Volume
Payments
     Valid X12 Format/Payments
     Invalid X12 Format
Syntax
Duplicate Control Numbers
    Invalid Debit
Error Codes
Volume — 50% of Expected High Volume Day
Revised 03/05/08

20


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
SAMPLE BULK PROVIDER TEST CASES
             
FUNCTIONALITY   TEST SCENARIOS
File Transmission Testing   VALID: The bulk provider will send through 1 file with a valid sender listed on the ISA segment. (NOTE: This will be an entity validation file with 1 - 5 entity validation requests. This will only b e used for EDI file transfer testing.)
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 838 file. The TFA and the bulk provider will work together to confirm the results.
 
           
    INVALID: The bulk provider will send through 1 file with an invalid sender listed on the ISA segment. (NOTE: This will be an entity validation file with 1 - 5 entity validation requests. This will only be used for EDI file transfer testing.)
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 838 file. The TFA and the bulk provider will work together to confirm the results.
 
           
“Valid” Entity Validation
X12 Format (Syntax)
  The bulk provider will send a file to the TFA. This file will be used to verify that the format of the entity validation file mirrors the EFTPS EDI trading partner profile standards. The TFA will check the following (but not limited to) on the 838 Entity Validation and 997 Functional Acknowledgment Files:
        Proper Enveloping:
 
          Content format of ISA and IEA Segments
 
          Content format of GS and GE Segments
 
          Content format of ST and SE Segments
        Bulk Provider TIN
        File Creation Date / Time
        Bulk Provider Name / Telephone Number
        Taxpayer Name / TIN
 
           
“Invalid” Entity   The bulk provider will send a second file to the TFA. This file
Revised 03/05/08

21


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
             
FUNCTIONALITY   TEST SCENARIOS
Validation X12 Format
(Syntax)
  will contain errors with the format of the file in order for the TFA to send the bulk provider a REJECTED 997 Functional Acknowledgment. The TFA will check the following (but not limited to) on the 838 Entity Validation:
        Improper Enveloping or X12 Format Errors:
 
          Content format of ISA and IEA Segments
 
          Content format of GS and GE Segments
 
          Content format of ST and SE Segments
 
           
“Valid” Entity Validation   The bulk provider will create an 838 Entity Validation file with 50 taxpayers. Place at least 5 Entity Validation requests containing primary/secondary names on the file.
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 24 hours of receipt of the 838.
 
           
“Valid” Entity Validation   The TFA will return an 824 Application Advice to the bulk provider within 3 days of receipt of the 838.
(continued)
           
 
           
    The bulk provider will return a 997 Functional Acknowledgment to the TFA within 1 hour of receipt of the 824.
 
           
“Invalid” Entity Validation   The bulk provider will create an “invalid” 838 Entity Validation file with 50 taxpayers. Please be sure to include the following invalid TINs:
        Blank TIN (Element N101 should be left blank)
 
          999999999 
 
          345A24436 
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 24 hours of receipt of the 838.
 
           
    The TFA will return an 824 Application Advice to the bulk provider within 3 days of receipt of the Entity validation file.
 
           
    The bulk provider will return a 997 Functional Acknowledgment to the TFA within 1 hour of the 824.
Revised 03/05/08

22


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
             
FUNCTIONALITY   TEST SCENARIOS
    On DAY 2 the TFA will return an 824 (reject) Application Advice to the bulk provider. This 824 will be the rejection file containing all invalid TINs.
 
           

Conditional Testing
  The bulk provider will return a 997 Functional Acknowledgment to the TFA within 1 hour of receipt of the 824. The bulk provider will send an Entity Validation file to the TFA containing at least 50% of your largest Entity Validation file.
 
           
Entity Validation
Volume Testing
           
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 24 hours of receipt of the 838.
 
           
    The TFA will return an 824 Application Advice to the bulk provider within 3 days of receipt of the 838.
 
           
    The bulk provider will return a 997 Functional Acknowledgment to the TFA within 1 hour of receipt of the 824.
 
           
“Valid” Bulk ACH Debit Format (Syntax)   The bulk provider will send 2 files to the TFA. This file will be used to verify that the format of the BULK ACH debit files mirror the EFTPS EDI trading partner profile standards. The TFA will check the following (but not limited to) on the 813 Tax Payment and 997 Functional Acknowledgment files:
        Proper Enveloping:
 
          Content format of ISA and IEA Segments
 
          Content format of GS and GE Segments
 
          Content format of ST and SE Segments
        Reference Information
        File Creation Date
        Date Sent to TFA
        Dollar Amount
        Payment Method
        Payment / Account Information
        Settlement Date
        Tax Form Information
        Taxpayer TIN
Revised 03/05/08

23


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
             
FUNCTIONALITY           TEST SCENARIOS
    Tax Period Date
 
           
“Invalid” Bulk ACH
Debit Format (Syntax)
  The bulk provider will send 2 additional files to the TFA. This file will contain errors with the format of the file in order for the TFA to send the bulk provider a REJECTED 997 Functional Acknowledgment. The TFA will check the following (but not limited to) on the 813 Entity Validation:
        Proper Enveloping:
 
          Content format of ISA and IEA Segments
 
          Content format of GS and GE Segments
 
          Content format of ST and SE Segments
        Reference Information
        File Creation Date
        Date Sent to the TFA
        Dollar Amount
        Payment Method
        Payment / Account Information
        Settlement Date
        Tax Form Information
        Taxpayer TIN
        Tax Period Date
 
           
“Valid” ACH Debits   The bulk provider will send a file of 50 payments. Be sure the transaction sets range from $.01 - $99,999.999.99 using various dollar amounts and cents.
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 813 Tax Payment.
 
           
    The TFA will return a 151 Electronic Filing of Tax Return Data Acknowledgment to the bulk provider within 3 hours of receipt of the 813 Tax Payment.
 
           
    The bulk provider will send the TFA a 997 Functional Acknowledgment within 1 hour of receipt of the 151.
 
           
“Invalid” ACH Debits   The bulk provider will send a file of 50 payments. Include the following TINs:
Revised 03/05/08

24


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
             
FUNCTIONALITY   TEST SCENARIOS
 
          000000000 
 
          34533ABCD 
 
          410700000 
 
          345558219 (valid TIN but unenrolled)
 
          452782525, tax type 941a (invalid tax type)
 
          345251872 (this will be returned as NSF)
 
           
    Be sure the transaction sets range from $.01 - $99,999.999.99 using various dollar amounts and cents with one transaction set for $100,000,000.00.
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 813 Tax Payment.
 
           
“Invalid” ACH Debits
(continued)
  The TFA will return a 151 Electronic Filing of Tax Return Data Acknowledgment within 3 hours of receipt of the 813 Tax Payment. This file will include the invalid TINs and the valid TIN with the invalid tax type.
 
           
    The bulk provider will send the TFA a 997 Functional Acknowledgment within 1 hour of receipt of the 151.
 
           
Payment Return — Part I   The TFA will send the bulk provider an 827 Financial Return Notice for TIN 345251872 that was used in the “invalid” ACH debit test case. This will be returned as NSF. (The payment reversal will occur on DAY 2).
 
           
    The bulk provider will send a 997 Functional Acknowledgment to the TFA within 1 hour of receipt of the 827.
 
           
Conditional Testing ACH “Bulk” Debit Volume Testing   The bulk provider will send a debit file reflecting 50% of the expected high volume day. This file will run through as a normal ACH debit.
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 813.
 
           
    The TFA will return a 151 Electronic Filing of Tax Return Data Acknowledgment within 3 hours of receipt of the 813.
Revised 03/05/08

25


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
             
FUNCTIONALITY   TEST SCENARIOS
    The bulk provider will send the TFA a 997 Functional Acknowledgment within 1 hour of receipt of the 151.
 
           
Conditional Testing “Bulk” Debit Transaction Set Limit   The bulk provider will send the TFA a bulk debit file with at least 1 transaction set with at least 1001 transactions.
 
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 813.
 
           
    The TFA will return a REJECTION 151 Electronic Filing of Tax Return Data Acknowledgment within 3 hours of receipt of the 813.
 
           
    The bulk provider will send the TFA a 997 Functional Acknowledgment within 1 hour of receipt of the 151.
 
           
Conditional Testing   The bulk provider will send a debit file with 21 (813) transaction sets.

File Limits
           
    The TFA will return a 997 Functional Acknowledgment to the bulk provider within 1 hour of receipt of the 813.
 
           
    The TFA will return a REJECTION 151 Electronic Filing of Tax Return Data Acknowledgment within 3 hours of receipt of the 813.
 
           
    The bulk provider will send the TFA a 997 Functional Acknowledgment within 1 hour of receipt of the 151.
 
           
Conditional Testing   The bulk provider will send the debit file used in the Valid ACH debit scenario. Change ONLY the settlement date. Do not make any changes to the ISA or GS control numbers.

Duplicate File
           
    The bulk provider will receive a NEGATIVE 997 Functional Acknowledgment from the TFA within 1 hour of receipt of the 813.
Revised 03/05/08

26


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
NOTES
Please be sure that the ISA segment is marked for Test.
Some of the test conditions are being tested so that the bulk provider will recognize the conditions that the rejection acknowledgment file will be returned in “production”.
Other Optional Test Scenarios:
Test Case #1: (Optional)
  Bulk Provider sends 813 file containing at least 1 ST with at least 2 payment records (1 payment with tax type code 10401 and another with code 10402) and a tax period end date (TFS segment, TFS07 element) other than the current year — 1.
 
  TFA returns an accepted 997 along with a 151 file containing rejected acknowledgement type and error code. Notice that all STs on the file (ISA) are rejected with error code 1104.
 
  Bulk Provider returns an accepted 997.
Test Case #2: (Optional)
  Bulk Provider sends 813 file containing at least 1 ST and 1 payment with tax type code 10402 and the Credit Card Authorization Date (DTM segment w/in the TFS Loop, DTM02 element) after 06/30/xx.
 
  TFA returns an accepted 997 along with a 151 file containing rejected acknowledgement type and error code. Notice that all STs on the file (ISA) are rejected with error code 1104.
 
  Bulk Provider returns an accepted 997.
Telecommunications/Timing of 813 Payment Flow Test Case (Optional #3):
  Bulk Provider sends an 813 file including at least 1 ST and one payment record
 
  TFA processes the 813 file and sends back a 151 confirmation file to the Bulk Provider.
 
  Bulk Provider returns an accepted 997 in response to the 151 confirmation file.
 
  TFA returns an accepted 997 acknowledgment (for the 813 payment file) to the Bulk Provider.
Revised 03/05/08

27


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
“ONE-ON-ONE” TEST CASE # 4: Entity Validation — Confirmation — Payment flow with multiple ST’s (transaction sets):
  Bulk Provider sends 1 Entity Validation file with at least two (2) 838 transaction sets (ST’s)
 
  TFA returns an accepted 997 and validates Entity Validation requests with IRS (simulated)
 
  TFA creates two (2) confirmation files, each containing an 824 ST that confirms each 838 ST and returns to Bulk Provider (Note: Based upon the timing of the 838 transaction sets that are sent will determine if the 824 sets are on one file or multiple files.)
 
  Bulk Provider returns an accepted 997 in response to the 824 confirmation file.
 
  Bulk Provider sends an 813 file with all validated Entity Validation requests.
 
  TFA returns a 997 acknowledging the 813 and also a 151 confirmation file to the Bulk Provider.
 
  Bulk Provider returns an accepted 997 in response to the 151 confirmation file. No duplicate payment file is generated and/or sent by the Bulk Provider.
Revised 03/05/08

28


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
3.   TELECOMMUNICATIONS CONCERNS
  A.   Data Transmission Specifications
 
  1.   Communications Protocol
File Transfer Protocol (FTP) or Connect Direct through the EFTPS wide area network (WAN) frame relay network. This network requires provisioning of appropriate telecommunication circuits and encrypted routers to connect to the EFTPS network. This provides hardware-based encryption and meets FIPS 140-2 requirements.
  2.   Line Service
Leased line, connection depending on capacity requirements.
  3.   Initiation Function
The FTP connection is always live to the TFA host.
  4.   Common Carrier Interface
Leased line connections will be coordinated at the time of circuit order.
  5.   Line Type
For a leased line connection, the TFA will coordinate the circuit order.
  6.   Transmission Speeds
56 KBS to 128 KBS (Leased)
  7.   Security: Identification-Authentication-Encryption
Encryption is required for all payment and entity validation transmissions.
Encryption router, providing router to router encryption across the EFTPS Bulk Provider WAN.
  8.   Value Added Networks (VAN)
VAN is not provided.
Revised 03/05/08

29


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
B. Telecommunications Set-Up
         
Vendor Name
 
 
   
 
       
Initiation Function
       
 
       
Communication Protocols
       
 
 
 
   
Line Type
       
 
 
 
   
 
       
Credit Card Bulk Provider:
       
IP Address
  To be provided by the FA    
 
       
Line Speed
       
Number of Locations
       
Debit Payments
                 
    Transmission Frequency   Daily    
    Transmission Volume        
 
      Wednesday        
 
      Friday        
 
      15th of Month        
 
      Quarter End  
 
 
   
    Transmission Times    
 
   
Entity Validation Files (Only for Processors who are contacted directly by the taxpayer)
             
 
  Conversion Volume        
 
  Transmission Frequency        
 
  Transmission Volume        
 
  Transmission Times        
 
     
 
   
Revised 03/05/08

30


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
C. Disaster Recovery
Treasury Financial Agent (TFA)
The TFA maintains a hot backup site for all operations in case of a hardware/software failure. Every effort will be made to ensure all tax payments are received on a timely basis. Processing windows may be modified to ensure timely posting of all tax payments. If a telecommunication, data center or operations center failure occurs, the Credit Card Bulk Provider will be provided disaster recovery procedures by the TFA.
Revised 03/05/08

31


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
D. Bulk Provider Disaster Recovery Plan
  High level description of Disaster Recovery Plan as it impacts EFTPS
 
  Do you have a back-up modem at primary site?
 
  Is there a back-up site (Hot back-up or Cold start)?
 
  How long is the outage before moving to back-up site?
 
  How will the TFA be notified to dial the back-up site or back-up modem?
 
  Who is the primary contact?
 
  Back-up Site
 
  Where is the back-up site located (city, state)?
 
  What is the hardware/telecom setup (Is this different from the primary site)?
 
  If hot back-up, are the modems always active?
 
  What are the back-up phone numbers?
 
    Disaster Recovery Testing
 
  When can we schedule initial test?
 
  Is periodic testing at the back-up site required? How often?
Revised 03/05/08

32


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
4.   EDI Record Formats
  A.   General
Important notes regarding the following material...
  Chapters 3, 4, 9 and 10 are extracted from the Implementation Guide for EFTPS Bulk Providers and edited for credit card processors. Material from the remaining Chapters of the Guide, if applicable to credit card processing, is included in earlier portions of this document.
 
  All Electronic Data Interchange transaction set layouts in Chapters 3, 4 and 9 are in ANSI X12 version 003050.
Revised 03/05/08

33


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
B. Chapter 3. Taxpayer Entity Validation
Overview
This chapter describes the modified enrollment process for taxpayers submitting electronic Federal tax payments through a credit card processor. File layouts for taxpayer Entity Validation requests are shown in Attachments 3A-3C at the end of the chapter.
Taxpayer Entity Validation Process
The modified enrollment process is intended to validate the Taxpayer Identification Number (social security number or employer identification number) for taxpayers who contact the credit card company directly to initiate a payment. This process is not required for taxpayers whose entity has been validated by the electronic filing system.
Credit card processors who have been contacted directly by the taxpayer must initiate a pseudo taxpayer enrollment process through the EFTPS financial agent to validate the taxpayer’s identification number and obtain the name control and zip code.
Step 
    The taxpayer authorizes the credit card processor/bulk provider to process the payment and to exchange information with the IRS necessary to process the payment.
Step
    The credit card processor/bulk provider transmits an entity validation file to the TFA. The format is ANSI X12 EDI 838-transaction set. Each 838-transaction set is limited to a maximum of 1,000 Entity Validation requests.
 
    Within one hour after receipt of entity validation file, the TFA will send the Credit Card Bulk Provider an acknowledgment of receipt of file. The format for the acknowledgment is ANSI X12 EDI 997-transaction set.
Revised 03/05/08

34


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Step ƒ
    The Treasury Financial Agent exchanges an entity file with the IRS. The entity file will include only the critical fields of data collected from the bulk provider, including the taxpayer’s SSN.
Step
    After the TFA receives the entity validation file from the IRS, the TFA notifies the bulk provider about acceptance or rejection of taxpayer Entity Validation requests. The acceptance file will contain the name control and ZIP code (may be present) of approved taxpayers. Rejected Entity Validation requests will include a reason code. The format is ANSI the X12 EDI 824-transaction set. Process the IRS entity validation files whether a zip code is supplied or not (where the zip is blank ). If the zip code field is received blank, the FA shall create the EDI 824 enrollment confirmation transaction set. The EDI 824 REF03 element will be blank and sent back to the Credit Card Processor without a zip code. For EDI 813 payments, the FA will not reject the payment transaction set if the zip code field is blank (Again, the REF03 element will be blank on the 813).
 
    Within one hour after receipt of receipt of this file, the bulk provider will return the TFA an acknowledgment of receipt of file to the TFA. The format is ANSI X12 EDI 997-transaction set.
Revised 03/05/08

35


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TRANSACTION SET 838
TRADING PARTNER PROFILE
VERSION 003050
SEND FROM BULK PROVIDER
REQUEST FOR ENTITY VALIDATION
ATTACHMENT 3A
838 — TRADING PARTNER PROFILE
Revised 03/05/08

36


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
VERSION 003050
REQUEST FOR ENTITY VALIDATION SENT FROM BULK PROVIDER
TABLE 3A-1
                         
SEG. ID   NAME   REQ. DES.   MAX. USE     LOOP REPEAT  
ST
  Transaction Set Header   M   1        
 
                   
BTP
  Beginning Segment for Trading Partner Profile   M   1        
 
                   
PER
  Administrative Communications Contact   O   1        
 
                   
 
  LOOP ID - LX             >1  
LX
  Assigned Number   O   1        
 
                   
 
  LOOP ID - N1             >1  
 
                   
N1
  Name   O   1        
 
                   
N9
  Reference Number   O   >1        
 
                   
SE
  Transaction Set Trailer   M   1        
EFTPS will limit use of the LX loop to 1,000.
One N1 loop is used for each Entity Validation request.
The N3 and N4 segments are not used for credit card processing.
Only one N9 segment will be used
Revised 03/05/08

37


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
ST SEGMENT
TRANSACTION SET HEADER
TABLE 3A-2
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
ST01
    143     Transaction Set Identifier Code   MIZ   ID   3/3   “838”
 
                           
ST02
    329     Transaction Set Control Number   M   AN   4/9    
ST02 is a control number that must be unique within the functional group.
The originator of the transaction assigns it.
Example:
     ST~838~45678\
Revised 03/05/08

38


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
BTP SEGMENT
BEGINNING SEGMENT FOR TRADING PARTNER PROFILE
TABLE 3A-3
                             
    REF       Req.   Elem   Elem    
Element   Number   Name   Desig   Type   Length   Comments
BTP01
    353     Transaction Set Purpose Code   MIZ   ID   2/2   “35” Request Authority
 
                           
BTP02
    127     Reference Number   MIZ   AN   1/30   To be provided by the TFA
 
                           
BTP03
    373     Date   MIZ   DT   6/6   (YYMMDD)
 
                           
BTP04
    337     Time   M   TM   4/8   (HHMM)
 
                           
BTP05
    640     Transaction Type Code   M   ID   2/2   “S4” Submission
 
                           
BTP06
    353     Transaction Set Purpose Code   OIZ   ID   2/2   “00” (Original)
 
                           
BTP07
    127     Reference Number   XIZ   AN   1/30   “CREDIT CARD”
 
                           
BTP08
    373     Date   XIZ   DT   6/6   Not Used
 
                           
BTP09
    337     Time   O   TM   4/8   Not Used
 
                           
BTP10
    591     Payment Method Code   O   ID   3/3   Not Used
BTP02 will contain the reference number (a 9 digit number assigned by the TFA at registration).
BTP03 will be the file creation date.
BTP04 will be the file creation Time (time expressed as 24 hour clock).
Example:
     Reference ID= 999999999                                File Creation Date = April 10, 2006
     File Creation Time = 8:10 am
     BTP~35~999999999~060410~0810~S4~00~CREDIT CARD\
Revised 03/05/08

39


 

Attachment 3, Appendix B
(EFTPS LOGO)
2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
PER SEGMENT
ADMINISTRATIVE COMMUNICATIONS CONTACT
TABLE 3A-4
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
PER01
    366     Contact Function Code   M   ID   2/2   “AA” Authorized
Representative
 
                           
PER02
    93     Name   O   AN   1/35    
 
                           
PER03
    365     Communication Number Qualifier   X   ID   2/2   “TE”
 
                           
PER04
    364     Communication Number   X   AN   1/80    
PER02 will contain the Name of the Bulk Provider.
PER04 will contain the Telephone number for the Bulk Provider.
Example:
Bulk Provider = We Pay Your Taxes
Telephone Number = (313)889-1234
PER~AA~We Pay Your Taxes~TE~3138891234\
Revised 03/05/08

40


 

Attachment 3, Appendix B
(EFTPS LOGO)
2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
LOOP ID — LX
LX SEGMENT
ASSIGNED NUMBER
TABLE 3A-5
                             
                Req.   Elem        
Element   REF Number   Name   Desig.   Type   Elem.Length   Comments
LX01
    554     Assigned Number   M   NO   1/6    
Use one LX Loop for each Taxpayer (TIN) to be validated.
LX01 is a unique number per transaction set control number and is assigned sequentially from1-1000 by the Bulk Provider. It will identify each tax Entity Validation request.
The number in the LX01 will be sent back in the 824 to notify you of acceptance or rejection of the Entity Validation request.
Maximum use of the LX loop for EFTPS is 1,000.
Start another 838 for additional Entity Validation requests.
Example:
LX~999\
Revised 03/05/08

41


 

Attachment 3, Appendix B
(EFTPS LOGO)
2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
LOOP ID — N1
N1 SEGMENT
NAME
TABLE 3A-6
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
N101
    98     Entity Identifier Code   M   ID   2/2   “TP” Primary Taxpayer
 
                           
N102
    93     Name   X   AN   1/35   Space
 
                           
N103
    66     Identification Code   X   ID   1/2   “24” Employer Identification
Number, or
“34” Social Security Number
 
                           
N104
    67     Identification Code   X   ID   2/20   EIN or SSN
 
                           
N105
    706     Entity Relationship Code   O   ID   2/2   Not Used
 
                           
N106
    98     Entity Identifier Code   O   ID   2/2   Not Used
Use one N1 Loop for each Qualifier you would like to use in the N101
Example:
     Credit card payment Entity Validation Request for an SSN
SSN = 178989292
N1~TP~ ~34~178989292\
     Credit card payment Entity Validation Request for an EIN
EIN = 68-0123456
N1~TP~ ~24~680123456\
Revised 03/05/08

42


 

Attachment 3, Appendix B
(EFTPS LOGO)
2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
LOOP ID — N1
N9 SEGMENT
REFERENCE NUMBER
TABLE 3A-7
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
N901
    128     Reference Number Qualifier   M   ID   2/2   “VU” Preparer’s
 
                          Verification Number
 
                           
N902
    127     Reference Number   X   AN   1/30   “8655”
 
                           
N903
    369     Free-Form Description   X   AN   1/45   Not Used
 
                           
N904
    373     Date   O   DT   6/6   Not Used
 
                           
N905
    337     Time   X   TM   4/8   Not Used
 
                           
N906
    623     Time Code   OIZ   ID   2/2   Not Used
This record confirms that the taxpayer has authorized the credit card processor/bulk provider to process the payment and to exchange information with the IRS necessary to process the payment.
Example:
     N9~VU~8655\
Revised 03/05/08

43


 

Attachment 3, Appendix B
(EFTPS LOGO)
2009 Credit Card Bulk Provider Requirements
838 — TRADING PARTNER PROFILE
VERSION 003050
SE SEGMENT
TRANSACTION SET TRAILER
TABLE 3A-8
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
SE01
    96     Number of Segments Included   M   NO   1/10    
 
                           
SE02
    329     Transaction Set Control Number   M   AN   4/9    
Example:
     SE~8~45678\
     Note: SE02 must be the same as the ST02.
Revised 03/05/08

44


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TRANSACTION SET 997
FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
ATTACHMENT 3B
Revised 03/05/08

45


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
TABLE 3B-1
                         
SEG.       REQ.   MAX.   LOOP
ID   NAME   DES   USE   REPEAT
ST
  Transaction Set Header   M     1          
AK1
  Functional Group Response Header   M     1          
 
                       
 
  LOOP — ID AK2                 999999  
AK2
  Transaction Set Response Header   O     1          
AK5
  Transaction Set Response Trailer   M     1          
 
                       
AK9
  Functional Group Response Trailer   M     1          
SE
  Transaction Set Trailer   M     1          
Revised 03/05/08

46


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
ST SEGMENT
TRANSACTION SET HEADER
TABLE 3B-2
                             
    REF       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
ST01
    143     Transaction Set Identifier Code   MIZ   ID   3/3   “997”
ST02
    329     Transaction Set Control Number   M   AN   4/9    
ST02 is a control number that must be unique within the functional group.
     The originator of the transaction assigns it.
Example:
     ST~997~56766\
Revised 03/05/08

47


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
AK1 SEGMENT
FUNCTIONAL GROUP RESPONSE HEADER
TABLE 3B-3
                             
    REF.       Req.   Elem   Elem.    
Element   Num.   Name   Desig   Type   Length   Comments
AK101
    479     Functional   MIZ   ID   2/2   “AG” Application Advice (824)
 
          Identifier               “FR” Financial Reporting (827)
 
          Code               “TA” Elec. Filing of Tax Return Data Ack. (151)
 
                          “TD” Trading Partner Profile (838)
 
                          “TF” Elec. Filing of Tax Return Data (813)
 
                          “TI” Tax Information Reporting (826)
AK102
    28     Group Control
Number
  MIZ   N0   1/9    
AK101 is the functional ID found in the GS segment (GS01) in the functional group being acknowledged.
AK102 is the functional group control number found in the GS segment; element GS06 in the functional group being acknowledged.
Example:
     AK1~TF~34566969\
Revised 03/05/08

48


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
LOOP ID — AK2
AK2 SEGMENT
TRANSACTION SET RESPONSE HEADER
TABLE 3B-4
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
AK201
    143     Trans. Set Identifier Code   MIZ   ID   3/3   “824” Application Advice
 
                          “827” Financial Reporting
 
                          “151” Elec. Filing of Tax Return Data Ack.
 
                          “838” Trading Partner Profile
 
                          “813” Elec. Filing of Tax Return Data
 
                          “826” Tax Information Reporting
AK202
    329     Trans. Set Control Number   MIZ   AN   4/9   From Trans. Set Identifier Code being acknowledged.
 
                          ST segment, element ST02
Example:
     AK2~813~323232\
Revised 03/05/08

49


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
LOOP ID — AK2
AK5 SEGMENT
TRANSACTION SET RESPONSE TRAILER
TABLE 3B-5
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
AK501
    717     Transaction Set Ackn. Code   M   ID   1/1   “A” Accepted
 
                          “R” Rejected
AK502
    718     Transaction Set Syntax Error Cd   O   ID   1/3   Not Used
AK503
    718     Transaction Set Syntax Error Cd   O   ID   1/3   Not Used
AK504
    718     Transaction Set Syntax Error Cd   O   ID   1/3   Not Used
AK505
    718     Transaction Set Syntax Error Cd   O   ID   1/3   Not Used
AK506
    718     Transaction Set Syntax Error Cd   O   ID   1/3   Not Used
Example:
     AK5~A\
Revised 03/05/08

50


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
AK9 SEGMENT
FUNCTIONAL GROUP RESPONSE TRAILER
TABLE 3B-6
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
AK901
    715     Functional Group Acknow Code   M   ID   1/1   “A” Accepted
 
                          “R” Rejected
AK902
    97     Number of Trans. Sets Included   M   N0   1/6    
AK903
    123     Number of Trans. Sets Received   M   N0   1/6    
AK904
    2     Number of Accepted Tran Sets   M   N0   1/6    
AK906
    716     Functional Group Syntax Error   O   ID   1/3   Not Used
AK907
    716     Functional Group Syntax Error   O   ID   1/3   Not Used
AK908
    716     Functional Group Syntax Error   O   ID   1/3   Not Used
AK909
    716     Functional Group Syntax Error   O   ID   1/3   Not Used
Example:
     AK9~A~1~1~1\
Revised 03/05/08

51


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
997 — FUNCTIONAL ACKNOWLEDGMENT
VERSION 003050
SE SEGMENT
TRANSACTION SET TRAILER
TABLE 3B-7
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
SE01
    96     Number of Included Segments   M   No   1/10    
SE02
    329     Transaction Set Control Number   M   AN   4/9   From ST Segment of “997” element ST02
Example:
     SE~5~56766\
Revised 03/05/08

52


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
TRANSACTION SET 824
APPLICATION ADVICE
VERSION 003050
SEND FROM TFA
CONFIRM/REJECT ENTITY REQUEST
ATTACHMENT 3C
Revised 03/05/08

53


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
824 — APPLICATION ADVICE
VERSION 003050
TABLE 3C-1
                     
SEG. ID   NAME   REQ. DES.   MAX. USE   LOOP REPEAT
ST
  Transaction Set Header   M   1        
 
                   
BGN
  Beginning Segment   M   1        
TABLE 3C-2
                     
SEG. ID   NAME   REQ. DES   MAX. USE   LOOP REPEAT
 
  LOOP ID — OTI               >1
 
                   
OTI
  Original Transaction Identification   O   1        
 
                   
REF
  Reference Numbers   O   12        
 
                   
SE
  Transaction Set Trailer   M   1        
Revised 03/05/08

54


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
824 — APPLICATION ADVICE
VERSION 003050
ST
TRANSACTION SET HEADER
TABLE 3C-3
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
ST01
  143       Transaction Set Identifier Code   MIZ   ID   3/3   “824”
 
                           
ST02
  329       Transaction Set Control Number   M   AN   4/9    
ST02 is a control number that must be unique within the functional group.
The originator of the transaction assigns it.
Example:
ST~824~56456\
Revised 03/05/08

55


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
824 — APPLICATION ADVICE
VERSION 003050
BGN
BEGINNING SEGMENT
TABLE 3C-4
                                 
    REF.       Req.   Elem.   Elem.    
Element   Num.   Name   Desig   Type   Length   Comments
BGN01
    353     Transaction Set Purpose Code   M   ID     2/2     “00” Original
 
                               
BGN02
    127     Reference Number   MIZ   AN     1/30     Assigned by transaction originator.
 
                              The same as element BGN06
 
                               
BGN03
    373     Date   MIZ   DT     6/6     YYMMDD Transaction Set Date
 
                               
BGN04
    337     Time   XIZ   TM     4/8     Not Used
 
                               
BGN05
    623     Time Code   OIZ   ID     2/2     Not Used
 
                               
BGN06
    127     Reference Number   OIZ   AN     1/30     Control Number from 838’s ST02
 
                               
BGN07
    640     Transaction Type Code   O   ID     2/2     Not Used
 
                               
BGN08
    306     Action Code   O   ID     2     “CF” Confirm
 
                              “U” Reject
BGN02 is the transaction set reference number (assigned by originator) and is the same as element BGN06.
BGN06 is the transaction set reference number of a previously sent 838 transaction and is used to match the 824 to the 838.
If BGN08 is “CF”, the transaction will confirm that all entity validations within the control number were accepted.
IF BGN08 is “U”, the transaction will confirm that some or all of the entity validations were rejected for the indicated control number. The OTI segment will provide details.
Example:
Reference Number for EV Confirmation = 567898, Date = November 15, 2006
Original Control Number = 45678 (ST02 Control Number from Request for entity validation)
     
All Accepted:
  BGN~00~567898~061115~~~45678~~CF\
Some TIN’s rejected:
  BGN~00~567898~061115~~~45678~~U\
Revised 03/05/08

56


 

     
(EFTPS LOGO)
  Attachment 3, Appendix B

  2009 Credit Card Bulk Provider Requirements
824 — APPLICATION ADVICE
VERSION 003050
LOOP ID — OTI
OTI SEGMENT
ORIGINAL TRANSACTION IDENTIFICATION
TABLE 3C-5
                                 
    REF.       Req.   Elem   Elem.    
Element   Num.   Name   Desig   Type   Length   Comments
OTI01
    110     Application Acknow. Code   M   ID     2     “IA” Item Accept
 
                              “IR” Item Reject
 
                               
OTI02
    128     Reference Number Qualifier   M   ID     2/2     “2I” Tracking Number
 
                               
OTI03
    127     Reference Number   M   AN     1/30     1 to 6 Digit Number from LX01 in 838
 
                               
OTI04
    142     Application Sender’s Code   O   AN     2/15     Not Used
 
                               
OTI05
    124     Application Receiver’s Code   O   AN     2/15     Not Used
 
                               
OTI06
    373     Date   OIZ   DT     6/6     Not Used
 
                               
OTI07
    337     Time   OIZ   TM     4/8     Not Used
 
                               
OTI08
    28     Group Control Number   X   N0     1/9     Not Used
 
                               
OTI09
    329     Transaction Set Control Number   O   AN     4/9     Not Used
 
                               
OTI10
    143     Transaction Set Identifier Code   O   ID     3/3     Not Used
 
                               
OTI11
    480     Version/Release/Industry   OIZ   AN     1/12     Not Used
 
                               
OTI03 will contain the reference number from the original the LX01 838 transaction. The LX01 is a sequential number generated by EDI from 1-1000.
         
Examples:
  Enrollment Reference Number = 999    
 
  Transaction Set Accepted:   OTI01~IA~2I~999\
 
  One Transaction Accepted, One Rejected:   OTI01~IR~2I~999\
Revised 03/05/08

57


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
824 — APPLICATION ADVICE
VERSION 003050
LOOP ID — OTI
REF SEGMENT
REFERENCE NUMBERS
TABLE 3C-6
                             
    REF.       Req.   Elem   Elem.    
Element   Num.   Name   Desig   Type   Length   Comments
REF01
    128     Reference Number Qualifier   M   ID   2/2   “1Q” Error Identification Code
 
                          “BB” Authorization Number
REF02
    127     Reference Number   X   AN   1/30   Name Control for valid TIN’s;
 
                          Error Code for invalid TIN’s
REF03
    352     Description   X   AN   1/80   ZIP Code
Examples:
Enrollment Rejection Reason Code = 0005
REF~1Q~0005\
Acceptance — Name Control ABCD, ZIP Code 01234
REF~BB~ABCD~01234\
Revised 03/05/08

58


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
824 — APPLICATION ADVICE
VERSION 003050
SE SEGMENT
TRANSACTION SET TRAILER
TABLE 3C-7
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
SE01
    96     Number of Included Segments   M   No   1/10    
SE02
    329     Transaction Set Control Number   M   AN   4/9    
Example:
Control Number = 56456
Number of Segments = 12
SE~ 12~56456\
Revised 03/05/08

59


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
C. Chapter 4. ACH Bulk Debits
ACH Bulk Debits (One Debit Posted to Bulk Provider’s Account)
Overview
This chapter describes the process for submitting Federal tax payments through one debit to the bulk provider’s account. File layouts for ACH Bulk Debits are provided in Attachments 4A-B at the end of the chapter.
ACH Bulk Debit Process
The graphic on page 65 depicts the process for submitting tax payments using the ACH Bulk Debit method.
Transmission Schedules:
The deadline for processing debit payments is 7:00 p.m. ET on the calendar day prior to settlement day. Settlement will occur on banking days only, Monday through Friday, excluding holidays.
Rejects:
    Any payment rejects may result in the entire file rejecting back to the Credit Card Bulk Provider, for additional detail contact the FA.
Returns:
The process for handling returns of debits will start with the Receiving Depository Financial Institution (RDFI) sending EFTPS a valid return reason code such as NSF or Uncollected Funds. Note: The RDFI must adhere to NACHA rules regarding returns. Next, EFTPS will send the bulk provider an 827-transaction set, which contains return reason information. EFTPS must send this transaction set 827 within 24 hours of the return settling.
Duplicate File
A duplicate file is one in which the ISA & GS control numbers are not unique. If a duplicate file is received by the TFA, the EDI translator will reject it and the bulk provider will receive a negative 997 functional acknowledgment. However, if a file has unique ISA and GS control numbers, then the file will not be rejected and any previously processed payments will be processed again. Resolution will need to come from the IRS directly. EFTPS does not have the capability to initiate a reversal of debit payment transactions.
Step 
    Taxpayers initiate the credit card payment through the electronic filing system or by contacting the credit card processor directly.
 
    As part of the credit card approval process, the taxpayer must certify that the credit card processor is authorized to process the payment and to exchange information with the IRS necessary to process the payment.
Revised 03/05/08

60


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Step
    The credit card processor/bulk provider completes a transmission to the TFA with payment detail. To settle on the next banking date, the file must be transmitted by 7:00 pm ET. Attachment 4A shows the format for the ANSI X12 EDI 813-transaction set.
 
    For each 813-transaction set, one bulk debit will be originated.
 
    Each 813-transaction set is limited to a maximum of 1000 transactions. There is a limit of 50 (fifty) 813-transaction sets to a file, for a maximum of 50,000 transactions per file.
Step ƒ
    Within one hour of receipt of the payment file, the TFA will send the bulk provider an acknowledgment file. Attachment 3B shows the format for the ANSI X12 EDI 997-transaction set
 
    Upon receipt of the payment file, the TFA will begin the validation and editing process. The first level of validation is on a file level:
  Ø   Validate that the detail totals to the header record. If the totals do not equal the TFA rejects the file.
    The second level of validation is at the transaction set level:
  Ø   Validate for the dollar limit of $99,999,999.99 per 813-transaction set. If the dollar amount is greater than $99,999,999.99, the TFA rejects the transaction set.
 
  Ø   Validate that the tax type for the payment is a valid IRS tax type. If a tax type is invalid, the TFA rejects the transaction set.
      All rejects will have to be corrected and retransmitted the TFA.
    Within three hours of receipt of the payment file, the TFA will send the bulk provider a confirmation file that provides the detail and status of each payment record. Attachment 4B shows the format for the ANSI X12 EDI 151-transaction set.
 
    Within one hour after receipt of receipt of this file, the bulk provider will return the TFA an acknowledgment of receipt of file to the TFA. Attachment B shows the format for the ANSI X12 EDI 997-transaction set.
Revised 03/05/08

61


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Step  For all files received before 8:00 PM ET step 4 will occur on same day file received.
    The TFA will initiate an ACH debit to the bulk provider’s account at the bulk provider’s financial institution for each 813-transaction set.
Step  Step 5 & 6 will occur on Bulk Debit Settlement date.
    The Federal Reserve Bank will deposit the bulk payment into the Treasury account.
 
    The Federal Reserve Bank will withdrawal the bulk payment from the Credit Card Bulk Provider’s Financial Institution and the Financial Institution will withdrawal the Bulk Payment from the Credit Card Bulk Provider’s account.
Step
    The TFA passes the payment detail to the IRS.
Revised 03/05/08

62


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TRANSACTION SET 813
ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
SEND FROM BULK PROVIDER
TAX PAYMENT
ATTACHMENT 4A
Revised 03/05/08

63


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
TABLE 4A-1
                     
SEG. ID   NAME   REQ. DES.     MAX. USE   LOOP REPEAT
ST
  Transaction Set Header   M     1      
BTI
  Beginning Tax Return   M     1      
DTM
  Date/Time Reference   M     10      
TIA
  Tax Information   M     1000      
REF
  Reference Numbers   O     >1      
BPR
  Beginning Segment for Payment Order/Remittance Adv   O     1000      
Revised 03/05/08

64


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
TABLE 4A-2
                         
SEG. ID   NAME   REQ. DES.     MAX. USE     LOOP REPEAT
 
  LOOP ID — TFS                 50000  
TFS
  Tax Form   O     1          
REF
  Reference Numbers   O     10          
DTM
  Date/Time Reference   O     10          
 
  LOOP ID — FGS                 100000  
FGS
  Form Group   O     1          
 
  LOOP ID — TIA                 10000  
TIA
  Tax Information and Amount   O     1          
                       
TABLE 4A-3
                       
SEG. ID   NAME   REQ. DES.     MAX. USE     LOOP REPEAT
SE
  Transaction Set Trailer   M     1          
NOTES:

Only one iteration of each of the segments in Table 4A-1 is expected for normal payments.
EFTPS limits the use of the TFS Loop to 1000.

The REF and DTM segments in the TFS loop are limited to one iteration.
Revised 03/05/08

65


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
ST SEGMENT
TRANSACTION SET HEADER
TABLE 4A-4
                             
    Ref.           Elem   Elem.    
Element   Num.   Name   Req. Design.   Type   Length   Comments
ST01
    143     Transaction Set Identifier Code   MIZ   ID   3/3   “813”
ST02
    329     Transaction Set Control Number   M   AN   4/9    
ST02 is a control number that must be unique within the functional group.
The transaction originator assigned the control number.
Example:
     ST~813~323232\
Revised 03/05/08

66


 

Attachment 3, Appendix B
     
(IMAGE)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
BTI SEGMENT
BEGINNING TAX SEGMENT
TABLE 4A-5
                             
    Ref.       Req.   Elem   Elem.    
Element   Num.   Name   Design.   Type   Length   Comments
BTI01
  128     Reference Number Qualifier   MIZ   ID   2/2   “T6” Tax Filing
 
                           
BTI02
  127     Reference Number   M   AN   1/30   “EFTPS”
 
                           
BTI03
  66     Identification Code Qualifier   MIZ   ID   2/2   “47” Tax Authority Identification
 
                           
BTI04
  67     Identification Code   M   AN   2/20   “IRS”
 
                           
BTI05
  373     Date   OIZ   DT   6/6    
 
                           
BTI06
  818     Name Control Identifier   O   AN   4/4   Not Used
 
                           
BTI07
  66     Identification Code Qualifier   MIZ   ID   1/2   “48” Electronic Filer Identification Number (EFIN)
 
                           
BTI08
  67     Identification Code   X   AN   2/20   Assigned by the TFA
 
                           
BTI09
  66     Identification Code Qualifier   XIZ   ID   1/2   “ZZ”
 
                           
BTI10
  67     Identification Code   X   AN   2/20   “CREDIT CARD”
 
                           
BTI11
  66     Identification Code Qualifier   X   ID   1/2   Not Used
 
                           
BTI12
  67     Identification Code   X   AN   2/20   Not Used
BTI01 & BTI02 define the tax exchange program or tax filing.
BTI03 & BTI04 define the tax authority
BTI05 is the creation date noted as YYMMDD.
     
Example:
    ID Code-=999999999, File Creation Date = April 10, 2006
 
  BTI~T6~EFTPS~47~IRS~060410~~48~999999999~ZZ~CREDIT CARD\
Revised 03/05/08

67


 

Attachment 3, Appendix B
     
(IMAGE)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
DTM SEGMENT
DATE/TIME REFERENCE
TABLE 4A-6
                             
    Ref.       Req.   Elem.   Elem.    
Element   Num.   Name   Design.   Type   Length   Comments
DTM01
  374     Date/Time Qualifier   M   ID   3/3   “009” Process Date
 
                           
DTM02
  373     Date   X   DT   6/6    
DTM02 should reflect the date the file is sent (YYMMDD).
     
Example:
   
 
   
 
  DTM~009~060411\
Revised 03/05/08

68


 

Attachment 3, Appendix B
     
(IMAGE)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
TIA SEGMENT
TAX INFORMATION AND AMOUNT
TABLE 4A-7
                             
    Ref.       Req.   Elem   Elem.    
Element   Num.   Name   Design   Type   Length   Comments
TIA01
  817     Tax Information Identification Number   M   AN   1/30   “EFTPS”
 
                           
TIA02
  782     Monetary Amount   X   R   1/15   (Element length limit is 10)
 
                           
TIA03
  449     Fixed Format Information   XIZ   AN   1/80   Not Used
 
                           
TIA04
  380     Quantity   X   R   1/15   Not Used
 
                           
TIA05
  355     Unit or Basis for Measurement Code   X   ID   2/2   Not Used
 
                           
TIA06
  954     Percent   X   R   1/10   Not Used
 
                           
TIA07
  782     Monetary Amount   XIZ   R   1/15   Not Used
The amount in the TIA02 is limited to 10 digits, including cents due to ACH constraints.
Limit is $99,999,999.99
Total Value of tax transactions within this 813 = $900.00
Bank of America Example: TIA~EFTPS~90000\
Revised 03/05/08

69


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
REF SEGMENT
REFERENCE NUMBERS
TABLE 4A-8
                         
    Ref.       Req.   Elem   Elem.    
Element   Num.   Name   Design   Type   Length   Comments
REF01
  128    Reference Number Qualifier   M   ID   2/2   “VU” Preparer’s Verification Number
 
                       
REF02
  127    Reference Number   X   AN   1/30   “8655” (REF01 of VU)
A REF segment with an REF01 of “VU” and an REF02 of “8655” is required for each 813.
The “VU” is a confirmation that the taxpayer has authorized the payment and has authorized disclosure to the credit card vendor/bulk provider of tax information needed to process the payment
Example:
     REF~VU~8655\
Revised 03/05/08

70


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
BPR SEGMENT
BEGINNING SEGMENT FOR PAYMENT ORDER/REMITTANCE ADVICE
TABLE 4A-9
                         
    Ref.       Req.   Elem   Elem.    
Element   Num   Name   Design   Type   Length   Comments
BPR01
  305   Transaction Handling Code   M   ID   1/2   “Z” Bulk Debit
 
                       
BPR02
  782   Monetary Amount   MIZ   R   1/15   (Element length limit is 10)
 
                       
BPR03
  478   Credit/Debit Flag   M   ID   1/1   “D” Debit
 
                       
BPR04
  591   Payment Method Code   M   ID   3/3   “ACH” Automated Clearing House
 
                       
BPR05
  812   Payment Format Code   O   ID   1/10   Not Used
 
                       
BPR06
  506   (DFI) ID Number Qualifier   XIZ   ID   2/2   Not Used
 
                       
BPR07
  507   (DFI) Identification Number   X   AN   3/12   Not Used
 
                       
BPR08
  569   Account Number Qualifier   OIZ   ID   1/3   Not Used
 
                       
BPR09
  508   Account Number   X   AN   1/35   Not Used
 
                       
BPR10
  509   Originating Company Identifier   O   AN   10/10   Not Used
 
                       
BPR11
  510   Originating Co. Supplemental Code   O   AN   9/9   Not Used
 
                       
BPR12
  506   (DFI) ID Number Qualifier   XIZ   ID   2/2   “01” ABA Transit Routing # with Check Digits(9)
 
                       
BPR13
  507   (DFI) Identification Number   X   AN   3/12   (9 digit RTN Number)
 
                       
BPR14
  569   Account Number Qualifier   OIZ   ID   1/3   “03” Checking Account
 
                      “SG” Savings
 
                       
BPR15
  508   Account Number   XIZ   AN   1/35   (Account Number)
 
                       
Revised 03/05/08

71


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
                         
    Ref.       Req.   Elem   Elem.    
Element   Num   Name   Design   Type   Length   Comments
 
                      Settlement
 
BPR16
  373   Date   OIZ   DT   6/6   Date(YYMMDD)
 
                       
BPR17
  1048   Business Function Code   OIZ   ID   1/3   Not Used
 
                       
BPR18
  506   (DFI) ID Number Qualifier   XIZ   ID   2/2   Not Used
 
                       
BPR19
  507   (DFI) Identification Number   X   AN   3/12   Not Used
 
                       
BPR20
  569   Account Number Qualifier   OIZ   ID   1/3   Not Used
 
                       
BPR21
  508   Account Number   XIZ   AN   1/35   Not Used
TABLE 4A-9 NOTES:
BPR02 cannot be more than 10 positions including cents due to ACH constraints.
All amounts must be dollars and cents.
Example:        Total payment = $9000.00
1.   For Debit Payments:
 
    RTN = 987654789            Checking Account Number = 8989898989
 
    Expected Settlement Date (Date of funds transfer to Treasury) = April 12, 2006
Bank of America Example:            BPR~C~900000~D~ACH~~~~~~~~01~987654789~03~8989898989~060412\
Revised 03/05/08

72


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
LOOP ID — TFS
TFS SEGMENT
TAX FORM
TABLE 4A-10
                         
    Ref.       Req.   Elem   Elem.    
Element   Num.   Name   Design.   Type   Length   Comments
TFS01
  128   Reference Number Qualifier   M   ID   2/2   “T6” Tax Filing
 
                       
TFS02
  127   Reference Number   M   AN   1/30   5 Digit Tax Type Code (see note)
 
                       
TFS03
  128   Reference Number Qualifier   X   ID   2/2   “T9”
 
                       
TFS04
  127   Reference Number   X   AN   1/30   Bulk Provider Reference Number
 
                       
TFS05
  66   Identification Code Qualifier   X   ID   2/2   “24” Employer Identification Number
 
                      “34” Social Security Number (Taxpayer TIN)
 
                       
TFS06
  67   Identification Code   X   AN   2/20   9 Digit TIN
 
                       
TFS07
  373   Date   O   DT   6/6   Tax Period End Date
 
                       
TFS08
  818   Name Control Identifier   O   AN   4/4   IRS Name Control
Revised 03/05/08

73


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Notes for TABLE 4A-10:
IMF
Stand-Alone only
10400 for payment with an amended return, Form 1040X
10401 for payment of amount due on a Form 1040 (series) tax return 10402 for payment for an extension, Form 4868
10404 for Form 1040 advance payment of a determined deficiency (audit adjustment or underreporter notice)
10406 for payment of estimated tax, Form 1040ES
10407 for payment due for an individual taxpayer in response to an IRS balance due notice 84887 for Trust Fund Recovery Penalty (TFRP) – subsequent/balance due/IA payment
Integrated efile and pay only
10401 for payment of amount due on a Form 1040 (series) tax return
10402 for payment for an extension, Form 4868
BMF
Stand-Alone only
09407 for Form 940 subsequent/balance due/IA payment
94100 for Form 941X amended or adjusted return payment
94107 for Form 941 subsequent/balance due/IA payment
09430 for Form 943X amended or adjusted return payment
09437 for Form 943 subsequent/balance due/IA payment
94407 for Form 944 subsequent/balance due/IA payment
09450 for Form 945X amended or adjusted return payment
09457 for Form 945 subsequent/ balance due/IA payment
10417 for Form 1041 subsequent/balance due payment
Integrated e-file and pay only
09401 for payment of amount due on a Form 940 (series) employment tax return
94101 for payment of amount due on a Form 941 (series) employment tax return
94401 for payment of amount due on a Form 944 (series) employment tax return
(Business payments will be accepted at all times throughout the processing year).
Credit Card Processors Validations:
Tax Types:
  -   Valid tax types shown above
 
  -   Each processor will have specific valid tax types assigned to prevent invalid tax types being submitted on the file.
 
  -   Individual payments (1040) and business payments (94X and 1041) must be on separate transaction files.
Revised 03/05/08

74


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Payment amount limitation for integrated file and pay:
  -   1040s — no limitation
 
  -   941s — <$2,500.00
 
  -   940s — =<$500.00
 
  -   944s — <$2,500.00
Payment amount limitation for stand-alone processors:
  -   1040s — no limitation
 
  -   TFRP — no limitation
 
  -   94X — no limitation
Bulk provider reference number is the Declaration Control Number (DCN) assigned by electronic filing or the authorization number given to the taxpayer by the credit card processor.
Tax Period Ending Date is in YYMMDD format.
a.   Must be formatted YYMMDD
b.   Must be 6 digit numeric. Spaces are invalid
c.   When building posting file use windowing for the century >79 =19
The integrated file and pay bulk provider should use the tax period ending date from the accepted e-file return.
For stand-alone processors ONLY - does not apply to integrated file and pay applications - the Name control is received from financial agent in Transaction Set 824, element REF02, or validated by electronic filing. Do not enter name control unless IRS has validated the TIN.
For Integrated file and pay, the name control should be taken from the accepted return submitted to IRS.
Use of the TFS Loop is limited to 1,000.
For additional tax transactions, use another 813.
Examples: Tax Form = 1040A, SSN = 787878787, Name Control = ABCD, DCN = 00123456123019,
Authorization Number B2012001
Direct call from taxpayer: TFS~T6~10401~T9~B2012001~34~787878787~061231~ABCD\
Payment initiated through e-file: TFS~T6~10401~T9~00123456123019~34~787878787~061231~ABCD\
Treasury Financial Agent File Edits:
10402 payments can be accepted through 06/30/XX.
No payment amount limitation edit will be performed (except normal ACH amount limitations and as noted above).
Tax Types:
  -   Shown above
 
  -   Each processor will have valid tax types assigned — valid tax types not assigned to a bulk provider are invalid and will cause the file to reject. (for BoA only — reject the transaction not the file)
Tax Period Ending Date is in YYMMDD format.
a. Must be formatted YYMMDD
Revised 03/05/08

75


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
b.   Must be 6 digit numeric. Spaces are invalid
c.   When building posting file use windowing for the century >79 =19
d.   If an invalid condition is detected, reject the file (BofA only — reject the transaction).
For Individual Tax Types:
NOTE: Credit Card Processors must use the Processing Period Chart.
10401 — Balance due on a return
During January 1 — 31 of the current year
Month = 12;
Year = previous year or previous year minus one year;
Day = no edit.
During February 1 through end of current year
Month = 12;
Year = previous year;
Day = no edit.
10402 — 4868 Extension
Month = 12
Year = previous year
Day = no edit
10404 – Form 1040 advance payment of a determined deficiency (audit adjustment or underreporter notice)
Month = 12
Year = previous year or previous year minus one or two years
Day = no edit
10406 — ES
Month = 12
Year = Previous year, if current month is “01/January OR 02/February”
Otherwise Year = current year
Day = no edit
10407 — Return or notice
Month = 12
Year = current year minus 1 through current year minus 11 (For example — On 1/10/2009 — the previous year is
2008 and is valid back to 1998)
Day = no edit
84887 – TFRP – subsequent/balance due/IA payment
Month = 03, 06, 09, or 12.
Year = prior year through prior year minus 10 (2008 through 1998)
For Business Tax Types:
NOTE: Credit Card Processors must use the Processing Period Chart.
Revised 03/05/08

76


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
For 940   — subsequent/bal due/IA (09407)
Month = 12;
Year = prior year through prior year minus 10 (2008 through 1998)
Day = 31
For 941  — amended or adjusted rtn payment (94100)
Month = 03, 06, 09, or 12.
Year = current year through current year minus 3 (2009 through 2006).
Use the following table to determine the valid tax period:
     TFA ONLY: Form 941Processing Table
                 
    Jan, Feb, March   Apr, May, June   July, Aug, Sept   Oct, Nov, Dec
Tax 03
  CY-1 thru CY-3   CY thru CY-3   CY thru CY-3   CY thru CY-3
Quarter 06
  CY-1 thru CY-3   CY-1 thru CY-3   CY thru CY-3   CY thru CY-3
Ending 09
  CY-1 thru CY-3   CY-1 thru CY-3   CY-1 thru CY-3   CY thru CY-3
Months 12
  CY-1 thru CY-3   CY-1 thru CY-3   CY-1 thru CY-3   CY-1 thru CY-3
For 941  — subsequent/bal due/IA (94107)
Month = 03, 06, 09, or 12.
Year = current year through current year minus 11 (2009 through 1998).
Use the following table to determine the valid tax period:
     TFA ONLY: Form 941Processing Table
                 
    Jan, Feb, March   Apr, May, June   July, Aug, Sept   Oct, Nov, Dec
Tax 03
  CY-1 thru CY-11   CY thru CY-11   CY thru CY-11   CY thru CY-11
Quarter 06
  CY-1 thru CY-11   CY-1 thru CY-11   CY thru CY-11   CY thru CY-11
Ending 09
  CY-1 thru CY-11   CY-1 thru CY-11   CY-1 thru CY-11   CY thru CY-11
Months 12
  CY-1 thru CY-11   CY-1 thru CY-11   CY-1 thru CY-11   CY-1 thru CY-11
For 943   — amended or adjusted rtn payment (09430)
Month = 12;
Year = prior year through prior year minus 2 (2008 through 2006)
Day = 31
 
For 943   — subsequent/bal due/IA (09437)
Month = 12;
Year = prior year through prior year minus 10 (2008 through 1998)
Day = 31
Revised 03/05/08

77


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
For 944  — subsequent/bal due/IA (94407),
Month = 12;
Year = previous year or previous year minus one
Day = 31
 
For 945   — amended or adjusted rtn payment (09450)
Month = 12;
Year = prior year through prior year minus 2 (2008 through 2006)
Day = 31
 
For 945  — subsequent/bal due/IA (09457)
Month = 12;
Year = prior year through prior year minus 10 (2008 through 1998)
Day = 31
 
For 1041
Month = 01-12
Year must equal previous year
Revised 03/05/08

78


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
LOOP ID — TFS
REF SEGMENT
REFERENCE NUMBERS
TABLE 4A-11
                             
    Ref.       Req.   Elem.   Elem.    
Element   Num.   Name   Design.   Type   Length   Comments
REF01
  128     Reference Number Qualifier   M   ID   2/2   “F8” Original Reference Number
REF02
  127     Reference Number   M   AN   1/30    
REF03
  352     Description   X   AN   1/80   ZIP Code
REF02 is an 8-digit number assigned by the sender of the transmission.
The REF02 is a unique number for each TFS Loop.
This number will be communicated back to the sender in the 151, along with the payment acknowledgment number for each tax transaction.
REF03 is the 5-digit ZIP code of the taxpayer, obtained in the following priority:
          1 — Input by the taxpayer during credit card validation or electronic filing
          2 — Obtained from IRS during E-file validation
          3 — Obtained from EFTPS during TIN validation
Example:
          REF~F8~98765432~01234\
Revised 03/05/08

79


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
LOOP ID — TFS
DTM SEGMENT
DATE/TIME REFERENCE
TABLE 4A-12
                             
    Ref.       Req.   Elem.   Elem    
Element   Num.   Name   Design.   Type   Length   Comments
DTM01
  374     Date/Time Qualifier   M   ID   3/3   “009” Process Date
DTM02
  373     Date   X   DT   6/6   Credit Card Authorization Date
Example:
          Authorization Date: April 10, 2006
          DTM~009~060410\
Revised 03/05/08

80


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements     
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
LOOP ID — FGS
FGS SEGMENT
FORM GROUP
TABLE 4A-13
                             
    Ref.       Req.   Elem.   Elem.    
Element   Num.   Name   Design.   Type   Length   Comments
FGS01
  350     Assigned Identification   M   AN   1/11   Sequential number assigned
by sender
Example:
          FGS~1\
Revised 03/05/08

81


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
LOOP ID — TIA
TIA SEGMENT
TAX INFORMATION AND AMOUNT
TABLE 4A-14
                             
    Ref.       Req.   Elem   Elem.    
Element   Num.   Name   Design   Type   Length   Comments
TIA01
  817     Tax Information Identification Number   M   AN   1/30   Tax Type Code
TIA02
  782     Monetary Amount   X   R   1/15   Element length limit is 10
TIA03
  449     Fixed Format Information   XIZ   AN   1/80   Not Used
TIA04
  380     Quantity   X   R   1/15   Not Used
TIA05
  355     Unit or Basis for Measurement Code   X   ID   2/2   Not Used
TIA06
  954     Percent   X   R   1/10   Not Used
TIA07
  782     Monetary Amount   XIZ   R   1/15   Not Used
TIA04 can not exceed 10 positions, including cents due to ACH constraints.
One TIA loop is required for each taxpayer payment.
Example:
          Reporting on a Form 1040 payment for an amount of $250.00 due with return.
Bank of America Example:                TIA~10401~250.00\
Revised 03/05/08

82


 

     
 
  Attachment 3, Appendix B
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
813 — ELECTRONIC FILING OF TAX RETURN DATA
VERSION 003050
SE SEGMENT
TRANSACTION SET TRAILER
TABLE 4A-15
                                 
    Ref.       Req.   Elem.   Elem.    
Element   Num.   Name   Design.   Type   Length   Comments
SE01
  96     Number of Included Segments   M   NO   1/10
SE02
  329     Transaction Set Control Number   M   AN   4/9
Example:
          SE~233~323232\
Revised 03/05/08

83


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
TRANSACTION SET 151
ELECTRONIC FILING OF TAX RETURN DATA
ACKNOWLEDGMENT
VERSION 003050
SEND TO BULK PROVIDER
CONFIRM/REJECT TAX PAYMENT
ATTACHMENT 4B
Revised 03/05/08

84


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
151 — ELECTRONIC FILING OF TAX RETURN DATA ACKNOWLEDGMENT
VERSION 003050
TABLE 4B-1
                 
            MAX.   LOOP
SEG. ID   NAME   REQ. DES.   USE   REPEAT
ST
  Transaction Set Header   M   1    
 
               
BTA
  Beginning Tax Acknowledgment   M   1    
 
               
BTI
  Beginning Tax Information   M   1    
TABLE 4B-2
                 
            MAX.   LOOP
SEG. ID   NAME   REQ. DES.   USE   REPEAT
 
  LOOP ID - TFS           50000
 
               
TFS
  Tax Form   O   1    
TABLE 4B-3
                     
            MAX.   LOOP
SEG. ID   NAME   REQ. DES.   USE   REPEAT
SE
  Transaction Set Trailer   M     1      
Please note:
EFTPS will allow a maximum loop repeat of 1000 for the TFS Loop versus the standard of 100,000.
All other segments used as noted on tables.
Revised 03/05/08

85


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
151 — ELECTRONIC FILING OF TAX RETURN DATA ACKNOWLEDGMENT
VERSION 003050
ST SEGMENT
TRANSACTION SET HEADER
TABLE 4B-4
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
ST01
  143       Transaction Set Identifier Code   MIZ   ID   3/3   “151”
 
                           
ST02
  329       Transaction Set Control Number   M   AN   4/9    
ST02 is a control number that must be unique within the functional group.
The originator assigns the control number.
Example:
ST~151~765468\
Revised 03/05/08

86


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
151 — ELECTRONIC FILING OF TAX RETURN DATA ACKNOWLEDGMENT
VERSION 003050
BTA SEGMENT
BEGINNING TAX ACKNOWLEDGMENT
TABLE 4B-5
                             
    REF.       Req.   Elem   Elem    
Element   Number   Name   Desig   Type   Length   Comments
BTA01
  587     Acknowledgment
Type
  M   ID   2/2   “AD” Acknowledge — With Detail, No Change
“AC” Acknowledge — With Detail and Change
“RD” Reject with Detail
“RJ” Rejected — No Detail
 
                           
BTA02
  373     Date   O   DT   6/6   Acknowledgment Date YYMMDD
 
                           
BTA03
  522     Amount Qualifier   X   ID   1/2   “AB” Adjusted Collected Balance
 
                           
BTA04
  782     Monetary Amount   X   R   1/15   Element limit length of 10
BTA01: AD — used to acknowledge 813 as processed. Will receive one EFT Number per Tax Transaction
AC — used to ID that the 813 were accepted but one or more transactions were rejected.
          Will see EFT number or error number for each tax transaction.
RD — used to identify rejection of single debit transactions.
RJ — used to identify that the entire 813 was rejected.
BTA03 is “AB” when the Debit processed is different from the original 813 debit amount.
          The BTA04 contains the amount reflecting accepted tax transactions.
BTA03 & BTA04 are not used when the debit is processed per the original 813.
Examples:
     
All tax transactions processed as received:
  BTA~AD~061125\
Some Tax transactions rejected, Debit adjusted accordingly:
   
 
   
Bank of America Example:
  BTA~AC~061125~AB~450.00\
Entire 813 rejected
  BTA~RJ~061125\
Revised 03/05/08

87


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
151 — ELECTRONIC FILING OF TAX RETURN DATA ACKNOWLEDGMENT
VERSION 003050
BTI SEGMENT
BEGINNING TAX INFORMATION
TABLE 4B-6
                             
    REF       Elem.   Elem        
Element   Num   Req. Name   Desig.   Type   Length   Comments
BTI01
  128     Reference Number Qualifier   MIZ   ID   2/2   “BT” Batch Number
 
                           
BTI02
  127     Reference Number   M   AN   1/30   Original Transaction Control
Number (ST02)
 
                           
BTI03
  66     Identification Code Qualifier   MIZ   ID   1/2   “SV” Service Provider Number
 
                           
BTI04
  67     Identification Code   M   AN   2/20   Assigned by the TFA
 
                           
BTI05
  373     Date   OIZ   DT   6/6   Not Used
 
                           
BTI06
  818     Name Control Identifier   O   AN   4/4   Not Used
 
                           
BTI07
  66     Identification Code Qualifier   XIZ   ID   1/2   “93” Code Assigned by Originator of Transaction
 
                           
BTI08
  67     Identification Code   X   AN   2/20   Confirmation Number
 
                           
BTI09
  66     Identification Code Qualifier   XIZ   ID   1/2   Not Used
 
                           
BTI10
  67     Identification Code   X   AN   2/20   Not Used
 
                           
BTI11
  66     Identification Code Qualifier   X   ID   1/2   Not Used
 
                           
BTI12
  67     Identification Code   X   AN   2/20   Not Used
BTI04 will contain a number assigned by the TFA
BTI08 will contain the 15-digit EFT number.
Example: Control Number from 813 = 323232, ID code = 999999999
Confirmation Number for Debit = 485954349484944
BTI~BT~323232~SV~999999999~~~93~485954349484944\
Revised 03/05/08

88


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
151 — ELECTRONIC FILING OF TAX RETURN DATA ACKNOWLEDGMENT
VERSION 003050
LOOP ID — TFS
TFS SEGMENT
TAX FORM
TABLE 4B-7
                           
    REF.       Req.   Elem   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
TFS01
  128     Reference Number Qualifier   M   ID   2/2   “F8” Original Reference
 
                        Number
 
                         
TFS02
  127     Reference Number   M   AN   1/30   (REF02 FROM TFS
 
                        LOOP)
 
                         
TFS03
  128     Reference Number Qualifier   X   ID   2/2   “93” Funds Authorization
 
                        “1Q” Error Identification
 
                        Code
 
                         
TFS04
  127     Reference Number   X   AN   1/30   Acknowledgment EFT
 
                        Number or Error Code
 
                         
TFS05
  66     Identification Code Qualifier   X   ID   1/2   “ZZ”
 
                         
TFS06
  67     Identification Code   X   AN   2/20   Bulk Provider Reference
 
                        Number
 
                         
TFS07
  373     Date   O   DT   6/6   Not Used
 
                         
TFS08
  818     Name Control Identifier   O   AN   4/4   Not Used
Revised 03/05/08

89


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
Notes for TABLE 4B-7
This segment is used provide the acknowledgment EFT number for each payment record or error code for rejected record.
The Bulk Provider Reference Number is returned from 813 element TFS04
Payment Error Codes are listed in a separate attachment
Examples:
1.   Accept and process debit as Transmitted — Payment Initiated through e-file
                         
Reference Number   Amount   Acknowledgment Number   Document Control Number
55566644
    100.00       168910688123456       00123456123019  
55566645
    300.00       168910688123457       00123456123020  
TFS~F8~55566644~93~168910688123456~ZZ~00123456123019\
TFS~F8~55566645~93~168910688123457~ZZ~00123456123020\
2.   Accept and process debit as transmitted — Payment Initiated through Credit Card Processor
                         
Reference Number   Amount   Acknowledgment Number   Authorization Number
55566644
    200.00       168910699123456       12345678  
55566645
    400.00       168910699123457       12345679  
TFS~F8~55566644~93~168910699123456~ZZ~12345678\
TFS~F8~55566645~93~168910699123457~ZZ~12345679\
Note: Qualifier 1Q (Error) is not expected to be used for credit card bulk provider payments.
Revised 03/05/08

90


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
151 — ELECTRONIC FILING OF TAX RETURN DATA ACKNOWLEDGMENT
VERSION 003050
SE SEGMENT
TRANSACTION SET TRAILER
TABLE 4B-8
                                 
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig.   Type   Length   Comments
SE01
    96     Number of Segments Included   M   NO   1/10
SE02
    329     Transaction Set Control Number   M   AN   4/9
Example:
ST~23~765468\
Revised 03/05/08

91


 

Attachment 3, Appendix B
     
(EFTPS LOGO)
  2009 Credit Card Bulk Provider Requirements
EDI 151 Payment Response Confirmation Error Codes
(EDI TRS Segment: TFS04 value when TFS is ‘1Q’)
     
EDI Error Code   EDI Message
1123
  Name control required; cannot be blank
 
   
1125
  Invalid TIN
 
   
1126
  File cannot contain business and individual payments
 
   
1127
  Bulkfiler is set up for business processing and individual payments
 
  were received
 
   
1128
  Bulkfiler is set up for individual processing and business payments
 
  were received
Revised 03/05/08

92


 

Attachment 3, Appendix B
(EFTPS LOGO)   2009 Credit Card Bulk Provider Requirements
D. Chapter 9 Return and Exception Item Reporting
Overview
This chapter describes processing and times frames for bulk transactions that do not meet edit criteria.
The following items are discussed:
    Single ACH Debit Posted to the Bulk Provider’s Account
 
    ACH Return Transactions
 
    Record Layouts
 
    Attachment 9, ANSI X12 EDI Transaction Set 827: Financial Return Notice shows the file layout for ACH return items.
Single ACH Debit Posted to the Bulk Provider’s Account
    Within 3 hours of receipt of the bulk provider’s transmission of an ACH debit file, the TFA validates that the batch totals equal the sum of the detail; otherwise, the TFA rejects the 813 (see Chapter 4, Attachment 4A).
 
    No 813 for an ACH transmission may exceed $99,999,999.00 (the amount field limit for ACH) or the 813 will be rejected.
 
    If an individual transaction within an 813 transaction set fails the enrollment edit (no name control), that transaction will be rejected with the appropriate reject reason code. The total amount of the debit to be created will be recalculated by the TFA based on the sum of the valid transactions contained within the 813.
 
    If the TFA rejects any item, the bulk provider must fix the problem transaction and resubmit it by 8:00 p.m. ET.
 
    The TFA subsequently sends the bulk provider a confirmation file using the ANSI EDI standard 151 acknowledgment format (see Chapter 4, Attachment 4B and ACH Return Transactions).
ACH Return Transactions
Revised 03/05/08

93


 

Attachment 3, Appendix B
(EFTPS LOGO)   2009 Credit Card Bulk Provider Requirements
    An ACH transaction may be returned to the TFA by the Receiving Financial Institution (RDFI), for a valid reason such as Insufficient or Uncollected Funds.
 
    The TFA will initiate an ANSI X12 EDI Transaction Set 827 Financial Return Notice to the bulk provider (see Attachment 9 at the end of this chapter). The 827 will contain:
  Ø   Return reason
 
  Ø   Dollar amount
 
  Ø   Transaction type (credit or debit)
 
  Ø   Original transaction confirmation number (see Record Layouts, below).
    The 827 transaction set will be transmitted to the bulk provider no later than 24 hours after the return settles.
 
    Once the 827 is received, the bulk provider will initiate a 997 Functional Acknowledgment (see Chapter 3, Attachment 3B) to the TFA indicating receipt of the returned transaction(s).
 
    The 997 will include an acceptance code as well as the functional group number being acknowledged.
 
    The bulk provider is expected to send the 997 immediately upon receipt of the 827 to ensure timely processing.
Record Layouts
Record layouts for the transactions sets used for return and exception item reporting (in the order referenced in this chapter) and their location in this document are shown in Table 9-1.
Table 9-1 EDI Transaction Sets Used for Return and Exception Item Reporting
                 
Transaction Set Number and Name   Chapter   Attachment
827 Financial Return Notice
    9       9  
 
               
151 Electronic Filing of Tax Return Data Acknowledgment
    4       4B  
 
               
997 Functional Acknowledgment
    3       3B  
Revised 03/05/08

94


 

Attachment 3, Appendix B
(EFTPS LOGO)   2009 Credit Card Bulk Provider Requirements
TRANSACTION SET 827
FINANCIAL RETURN NOTICE
VERSION 003050
SEND TO BULK PROVIDERS
NOTIFICATION OF FINANCIAL RETURNS
ATTACHMENT 9
Revised 03/05/08

95


 

Attachment 3, Appendix B
(EFTPS LOGO)   2009 Credit Card Bulk Provider Requirements
827 — FINANCIAL RETURN NOTICE
VERSION 003050
TABLE 9-1
                     
SEG. ID   NAME   REQ. DES.   MAX. USE   LOOP REPEAT
ST
  Transaction Set Header   M     1      
 
                   
RIC
  Financial Return   M     1      
 
                   
REF
  Reference Numbers   O     10      
 
                   
SE
  Transaction Set Trailer   M     1      
Revised 03/05/08

96


 

Attachment 3, Appendix B
(EFTPS LOGO)   2009 Credit Card Bulk Provider Requirements
827 — FINANCIAL RETURN NOTICE
VERSION 003050
ST SEGMENT
TRANSACTION SET HEADER
TABLE 9-2
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
ST01
  143   Transaction Set Identifier Code   MIZ   D   3/3   “827”
 
                           
ST02
  329   Transaction Set Control Number   M   AN   4/9    
ST02 is a control number that must be unique within the functional group.
     It is assigned by the originator of the transaction.
Example:
     ST~827~785468\
Revised 03/05/08

97


 

\

Attachment 3, Appendix B
(EFTPS LOGO)   2009 Credit Card Bulk Provider Requirements
827 — FINANCIAL RETURN NOTICE
VERSION 003050
RIC SEGMENT
FINANCIAL RETURN
TABLE 9-3
                             
    REF.       Req.   Elem.   Elem.    
Element   Number   Name   Desig   Type   Length   Comments
RIC01
  647   Application Error Condition Code   M   ID   1/3   “830” Refused “011” Not Matching
 
                           
RIC02
  782   Monetary Amount   M   R   1/15    
 
                           
RIC03
  478   Credit/Debit Flag   M   ID   1/1    
 
                           
RIC0 4
  508   Account Number   X   AN   1/35   Not Used
 
                           
RIC05
  569   Account Number Qualifier   OIZ