Document:

exv10w40

Exhibit 10.40

	
SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS        1. REQUISITION NUMBER	 PAGE 1 OF 48
W-6-W2-03-TP-R03 000
2. CONTRACT NO.	3. AWARD/EFFECTIVE DATE       4. ORDER NUMBER	5. SOLICITATION NUMBER	6. SOLICITATION ISSUE
DATE
TIRNO-09-C00010	04/2/2009
 NAME	b. TELEPHONE NUMBER (No collect	8. OFFER DUE DATE/
7. FOR SOLICITATION		calls)	LOCAL TIME
INFORMATION CALL:	DIANNE L GOOSBY	202-283-1207
9. ISSUED BY	CODE          IRS0088         10. THIS ACQUISITION IS
Internal Revenue Service
0000 Oxon Hill Road, Suite 500	 SMALL BUSINESS          EMERGING SMAL
Oxon Hill, MD 20743	 SMALL BUSINESS	BUSINESS
  HUBZONE SMALL
NAICS:	 BUSINESS
 SERVICE-DISABLED
SIZE STANDARD:	   VETERAN-OWNED           8(A)
	        SMALL BUSINESS
11. DELIVERY FOR FOB DESTINATION         12. DISCOUNT TERMS	 13a. THIS CONTRACT IS A          13b. RATING
UNLESS BLOCK IS MARKED	 RATED ORDER UNDER DPAS
(15 CFR700)
14. METHOD OF SOLICITATION
SEE SCHEDULE		  RFO	IFB	RFP
15. DELIVER TO	CODE        20706891	16. ADMINISTERED BY	CODE 	IRS0088
Internal Revenue Service
Internal Revenue Service	6009 Oxon Hill Road, Suite 500
Lanham, MD 20706	Oxon HID, MD 20745
17a. CONTRACTOR/OFFEROR      CODE       00051397         FACILITY 	18a. PAYMENT WILL BE MADE BY	CODE I	INVB33O
CODE
OFFICIAL PAYMENTS CORPORATION	IRS Bsckley Finance Center
2333 SAN RAMON VALLEY BOULEVARD STE# 450	P.O. Box 9002
SAN RAMON. CA 945834456	Tel: (304) 254-3300
Beckley. WV 25802
TELEPHONE NO.	OFFICIAL PAYMENTS CORPORATION
17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN	18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK
  OFFER	BELOW IS CHECKED.	SEE ADDENDUM
19.		20.		21.    22.    23.		24.
ITEM NO.	SCHEDULE OF SUPPLIES/SERVICES	QUANTITY         UNIT	UNIT PRICE	AMOUNT
SEE ATTACHMENT 1 - PRICING
		Use Reserve and/or Attach Additional Sheets Necessary
25. ACCOUNTING AND APPROPRIATION DATA	26. TOTAL AWARD AMOUNT (For Govt. Use Only)
	None 	$0.00
 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1. 52.212-4,
FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA	 ARE      ARE NOT ATTACHED
  27b.  CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR
52.212-4, FAR 52.212-5 IS ATTACHED. ADDENDA	 ARE      ARE NOT ATTACHED
  28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN
1              29. AWARD OF CONTRACT: REF.	OFFER
  COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND
DELIVER	   DATED	, YOUR OFFER ON SOLICITATION (BLOCK 5)
ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL	INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH
SHEETS SUBJECJJO THE TERMS AND CONDITIONS SPECIFIED HEREIN.	         HEREIN, IS ACCEPTED AS TO ITEMS:
30a. SIGNATURE OF OFFEROR/CONTRACTOR	31a. UNITED STATES OF AMERICA
(SIGNATURE OF CONTRACTING OFFICER)
DIANNE L GOOSBY
30b. NAME AND TITLE OF SIGNER
[TYPE OR PRINT)	 30c. DATE SIGNED       31b NAME OF CONTRACTING OFFICER (TYPE OR PRINT)    31c. DATE SIGNED
NINA K. VELLAYAN, COO 4/3/2009 	DIANNE L GOOSBY  202-283-1207	4/2/2009
AUTHORIZED FOR LOCAL REPRODUCTION	STANDARD FORM 1449 (REV. 3/2005)
PREVIOUS EDITION IS NOT USABLE	Prescribed by GSA - FAR (48 CFR) 53.212

 

	
19. 20. 21.  22. 23. 24.
ITEM NO.	SCHEDULE OF SUPPLIES/SERVICES	QUANTITY        UNIT	UNIT
PRICE (US$)	AMOUNT (US$)
32a. QUANTITY IN COLUMN 21 HAS BEEN
 RECEIVED	 INSPECTED	 ACCEPTED, AND CONFORMS TO THE CONTRACT. EXCEPT AS NOTED:
32b. SIGNATURE OF AUTHORIZED GOVERNMENT	 32c. DATE	I 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT
REPRESENTATIVE	REPRESENTATIVE
32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE	32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE
32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE
33. SHIP NUMBER	 34. VOUCHER NUMBER        35. AMOUNT VERIFIED     36. PAYMENT	I 37. CHECK NUMBER
	                                                              CORRECT FOR                                                                                  _
 PARTIAL  FINAL	COMPLETE PARTIAL FINAL
38. S/R ACCOUNT	39.S/R VOUCHER NUMBER     40. PAID BY
NUMBER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR
PAYMENT          42a. RECEIVED BY (Print)
41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER          41c. DATE
42b. RECEIVED AT (Location)
42.C DATE REC’D {YY/MUVDD)       42d. TOTAL CONTAINERS
STANDARD FORM 1449 (REV. 3/2005) BACK

 

TIRNO-09-C-00019

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	 	 	9 	 
	 	 	 	 
	 	 	 	 
	 	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)
	 	

 Page 3 of 48

 

	 	 	 	 	 	 
	 	PAGE NOS.	 
	 	 	FAR 52.212-5 CONTRACT TERMS & CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE 	 	 
	 	 	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 of 48

 

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 — (January 1, 2010 through December 31, 2010)

	 	 	 	 	 
	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	 

 Page 5 of 48

 

	 	 	 	 	 
	CLIN DESCRIPTION	 	PRICE
	 
	0023 Scripts/Call Flows/Screen Shots/Business Rules
	 	$	0	 
	0024 Work Breakdown Structure/Schedule
	 	$	0	 
	0025 Incident Reports
	 	$	0	 
	0026 Convenience Fee — Fixed
	 	 	2.39	%
	 
	TOTAL NO COST, FIXED PRICE
	 	$	0	 
	 
	 	 	 

2.2.2 OPTION 1 — (January 1, 2011 through December 31, 2011 )

	 	 	 	 	 
	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
	 	 	2.39	%
	 
	TOTAL FIXED PRICE
	 	$	0	 
	 
	 	 	 

2.2.3 OPTION 2 — (January 1, 2012 through December 31, 2012)

	 	 	 	 	 
	CLIN DESCRIPTION	 	PRICE
	 
	2001 Electronic Payments
	 	$	0	 
	2002 Monthly Development Status Reports
	 	$	0	 
	2003 Daily Transaction Reports
	 	$	0	 

 Page 6 of 48

 

	 	 	 	 	 
	CLIN DESCRIPTION	 	PRICE
	 
	2004 Monthly Transaction Reports
	 	$	0	 
	2005 Chargeback Reports
	 	$	0	 
	2006 Exception Handling Reports
	 	$	0	 
	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
	 	 	2.39	%
	 
	TOTAL FIRM FIXED PRICE
	 	$	0	 
	 
	 	 	 

2.2.4 OPTION 3 — (January 1, 2013 through December 31, 2013)

	 	 	 	 	 
	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	 

 Page 7 of 48

 

					
	CLIN DESCRIPTION	 	PRICE
	 
	3020 System Development Life Cycle Plan
	 	$	0	 
	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
	 	 	2.39	%
	 
	TOTAL FIXED PRICE
	 	$	0	 
	 
	 	 	 

2.2.5 OPTION 4 — (January 1, 2014 through December 31, 2014)

	 	 	 	 	 
	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
	 	 	2.39	%
	 
	TOTAL FIXED PRICE
	 	$	0	 
	 
	 	 	 

 Page 8 of 48

 

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

S:SE:CAS:SP:TPM

5000 Ellin Road

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 (955) 825-5040.

 Page 9 of 48

 

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 January 1, 2010 through December 31, 2010, with four (4)
one year option periods, as follows:

	 	 	 	 	 	 	 

	Base Period:

	 	January 1, 2010
	 	through
	 	December 31, 2010
	 
	 	 	 	 	 	 
	Option Period I :

	 	January 1, 2011
	 	through
	 	December 31, 2011
	 
	 	 	 	 	 	 
	Option Period II:

	 	January 1, 2012
	 	through
	 	December 31, 2012
	 
	 	 	 	 	 	 
	Option Period III:

	 	January 1, 2013
	 	through
	 	December 31, 2013
	 
	 	 	 	 	 	 
	Option Period IV:

	 	January 1, 2014
	 	through
	 	December 31, 2014

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 of 48

 

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 of 48

 

          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).

          o (23) 52.222-39, Notification of Employee Rights Concerning Payment of Union
Dues or Fees (Dec 2004) (E.O. 13201).

 Page 12 of 48

 

          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.

     (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:

 Page 13 of 48

 

     [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
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

 Page 14 of 48

 

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)

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)

 Page 15 of 48

 

     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.

     (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;

 Page 16 of 48

 

               (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” refers  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

               (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.

 Page 17 of 48

 

     (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 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.

 Page 18 of 48

 

     (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.

     (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.

 Page 19 of 48

 

     (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 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]

 Page 20 of 48

 

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 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

 Page 21 of 48

 

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
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

 Page 22 of 48

 

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
the basic clause when an existing contract, task/delivery/purchase order, interagency
agreement, or BPA is being modified.

 Page 23 of 48

 

(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 of 48

 

ATTACHMENT 2

STATEMENT OF WORK

Entitled

Electronic PAYMENT

(E-PAYMENT)

Page 25 of 48

 

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.

 

			
	1 	 	The data was derived from the IRS 2005 Data Book.

Page 26 of 48

 

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 twelve 12 months and four, 12-month option periods, that may extend the contract period of performance
through filing season 2014. 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 of 48

 

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
	 	 	11,576,213	2	 	$	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.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.

Page 28 of 48

 

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.

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.

Page 29 of 48

 

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 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

Page 30 of 48

 

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
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.

Page 31 of 48

 

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
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

Page 32 of 48

 

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.)

(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.

Page 33 of 48

 

(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.

[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)

Page 34 of 48

 

	 	 	 	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.

	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.

Page 35 of 48

 

[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.

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.

Page 36 of 48

 

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

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.

Page 37 of 48

 

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)],

	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.

Page 38 of 48

 

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,

	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.

Page 39 of 48

 

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),

	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.

Page 40 of 48

 

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

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

Page 41 of 48

 

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

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:

Page 42 of 48

 

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.

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.

Page 43 of 48

 

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

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

Page 44 of 48

 

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
	 
	Contractor

	 	Deliver Trusted Facility Manual
	 	08/24/2009
	 
	Contractor

	 	Deliver Final Test Plans
	 	08/29/2009
	 
	Contractor

	 	Begin internal application testing and deliver test cases
	 	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
	 
	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
	 

Page 45 of 48

 

	 	 	 	 	 
	Responsible	 	Event	 	Anticipated
	Party	 	 	 	Due Dates
	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 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

Page 46 of 48

 

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 of 48

 

Attachment 3

LIST OF APPENDICES

	 	 	 	 	 
	Appendix 
 No.	 	Title	 	Double
	 	 	 	 	click
	 	 	 	 	to
	 	 	 	 	open file
	A.

	 	FAR 2.101 — Definition Of A Commercial Item
	 	
	 
	 	 	 	 
	B.

	 	2009 Credit Card Bulk Provider Requirements
	 	
	 
	 	 	 	 
	C.

	 	Treasury Regulations 301.6311-2 
Payment by Credit Card or Debit Card
	 	
	 

	 		 	 

Page 48 of 48exv10w41

Exhibit 10.41

	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	 	 	9 	 
	 	 	 	 
	 	 	 	 
	 	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

 

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)

 

			
	1 	 	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
	 	
	 
	 	 	 	 
	B.

	 	2009 Credit Card Bulk Provider Requirements
	 	
	 
	 	 	 	 
	C.

	 	Treasury Regulations 301.6311-2 
Payment by Credit Card or Debit Card
	 	
	 

	 		 	 

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

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

CREDIT

CARD

BULK

PROVIDER

REQUIREMENTS

Revised 03/05/08

1

 

Attachment 3, Appendix B

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

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

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

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

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

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

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

TRANSACTION SET 997

FUNCTIONAL ACKNOWLEDGMENT

VERSION 003050

ATTACHMENT 3B

Revised 03/05/08

45

 

Attachment 3, Appendix B

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

 

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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
	

	 	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
	

	 	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
	

	 	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
	

	 	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
	

	 	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
	

	 	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
	

	 	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

	 	 	 

	
	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

	 	 	 

	

	 	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

			
	
	 	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

			
	
	 	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

			
	
	 	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

			
	
	 	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

			
	
	 	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

			
	
	 	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
	 	ID
	 	1/3
	 	Not Used
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RIC06

	 	506	 	(DFI) ID Number Qualifier
	 	X
	 	ID
	 	2/2
	 	Not Used
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RIC07

	 	507	 	(DFI) Identification
Number
	 	X
	 	AN
	 	3/12
	 	Not Used

RIC02 is amount of Returned Transaction

Example:

     Transaction Rejected from Financial Institution = $350.00

     RIC~830~35000~D\

     If RIC01 = 011, then the transaction is a notification of a change.

     Payment was processed, but data needs to be updated prior to next payment.

     If
RIC01 = 830, then the transaction is notification of a return/refusal.

     Payment has been backed out. Tax is still due.

Revised 03/05/08

98

 

Attachment 3, Appendix B

			
	
	 	2009 Credit Card Bulk Provider Requirements

827 — FINANCIAL RETURN NOTICE

VERSION 003050

REF SEGMENT 
REFERENCE
NUMBERS

TABLE 9-4

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	REF.	 	 	 	Req.	 	Elem.	 	Elem.	 	 
	Element	 	Number	 	Name	 	Desig.	 	Type	 	Length	 	Comments
	REF01

	 	128	 	 	Reference Number
Qualifier
	 	M
	 	ID
	 	2/2
	 	“93” Funds Authorization “1Q” Error Code “ZZ” Mutually Defined
	 
	REF02

	 	127	 	 	Reference Number
	 	X
	 	AN
	 	1/30	 	 

Examples:

Return for insufficient Funds:

     REF~93~484849501234512\

     REF~1Q~R01\

NOC — Incorrect Routing Number

     REF~93~484849501234512\

     REF~1Q~C02\

     REF~ZZ~123456666\

First REF segment identifies the original EFT Number

Second REF identifies the ACH reason code

Third REF used to identify corrected data if second REF identified a Notification of Change

Revised 03/05/08

99

 

Attachment 3, Appendix B

			
	
	 	2009 Credit Card Bulk Provider Requirements

827 — FINANCIAL RETURN NOTICE

VERSION 003050

SE SEGMENT

TRANSACTION SET TRAILER

TABLE 9-5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	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~6~785468\

E. Chapter 10 Daily Operation Procedures

Overview

The operating procedures described in this chapter provide an overview of tax payment
processing by the

Revised 03/05/08

100

 

Attachment 3, Appendix B

			
	
	 	2009 Credit Card Bulk Provider Requirements

Treasury Financial Agent (TFA). Questions about these procedures or requests for assistance
may be directed to the TFA’s customer service representatives.

This chapter contains the following information:

	Ø	 	 Federal Reserve Bank Holidays

	Ø	 	 Input File Delivery/Verification

	Ø	 	 Inquiries

	Ø	 	 EFTPS Bulk Provider Tax Payment Processing Deadlines

Federal Reserve Bank Holidays

Tax transactions will not be processed through FedACH or Fedwire Funds Transfer on Federal Reserve
Bank holidays. A listing of Federal Reserve Bank holidays is provided.

Input File Delivery/Verification

	1.	 	ACH Debits (Single Debit Posted to the Bulk Providers) Account

	•	 	ACH Debit files transmitted directly to a TFA must be completely received by the TFA
between the hours of 7:00 am ET and 7:00 pm ET on the banking day prior to the settlement
date.

	•	 	Within three (3) hours after receipt of the bulk provider’s transmission, the TFA validates
that the batch totals equal the sum of the detail and the amount for an individual 813 and
that the total amount is not greater than $9,999,999,999.99 in accordance with NACHA rules.
Otherwise, the TFA rejects the 813.

	•	 	If any items are rejected by the TFA, the bulk provider must fix the problem transactions
and resubmit them by 8:00 pm ET.

	 	 	For further information, see also Chapter 4, ACH Bulk Debits.

Return Item Handling

ACH debit entries may be returned for a variety of reasons. Return entries are rejected by the
receiving depository financial institution and sent, via the ACH, back to the TFA.

The bulk provider will be notified via a file transmission no later than 24 hours after the return
settles. The ANSI X12 827 format will be utilized for this purpose.

Inquiries

If you have any questions regarding a file or item that you have sent to the TFA, contact a TFA
Customer Service Representative at 1-800-555-4477 between 8:30 am and 8:00 pm ET for assistance.

Revised 03/05/08

101

 

Attachment 3, Appendix B

			
	
	 	2009 Credit Card Bulk Provider Requirements

EFTPS Bulk Provider Tax Payment Processing Deadlines

     Table 10-1 EFTPS Bulk Provider Tax Payment Processing Deadlines

	 	 	 
	Process	 	Deadline
	Bulk provider transmits ACH single debit file to TFA

	 	7:00 a.m. — 7:00 p.m. ET on the
banking day prior to the
settlement date
	 
	 	 
	Bulk provider retransmits previously rejected ACH
single debits to TFA

	 	8:00 p.m. ET on the banking day prior to the settlement date

Revised 03/05/08

102

 

Attachment 3, Appendix B

			
	
	 	2009 Credit Card Bulk Provider Requirements

	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012
	New Year’s Day

	 	January 1
	 	January 1
	 	January 1
	 	January 1*
	 	January 2
	 
	 	 	 	 	 	 	 	 	 	 
	Birthday of
Martin Luther King, Jr.

	 	January 21
	 	January 19
	 	January 18
	 	January 17
	 	January 16
	 
	 	 	 	 	 	 	 	 	 	 
	President’s Day

	 	February 18
	 	February 16
	 	February 15
	 	February 21
	 	February 20
	 
	 	 	 	 	 	 	 	 	 	 
	Memorial Day

	 	May 26
	 	May 25
	 	May 31
	 	May 30
	 	May 28
	 
	 	 	 	 	 	 	 	 	 	 
	Independence Day

	 	July 4
	 	July 4*
	 	July 5
	 	July 4
	 	July 4
	 
	 	 	 	 	 	 	 	 	 	 
	Labor Day

	 	September 1
	 	September 7
	 	September 6
	 	September 5
	 	September 3
	 
	 	 	 	 	 	 	 	 	 	 
	Columbus Day

	 	October 13
	 	October 12
	 	October 11
	 	October 10
	 	October 8
	 
	 	 	 	 	 	 	 	 	 	 
	Veterans Day

	 	November 11
	 	November 11
	 	November 11
	 	November 11
	 	November 12
	 
	 	 	 	 	 	 	 	 	 	 
	Thanksgiving Day

	 	November 27
	 	November 26
	 	November 25
	 	November 24
	 	November 22
	 
	 	 	 	 	 	 	 	 	 	 
	Christmas Day

	 	December 25
	 	December 25
	 	December 25*
	 	December 26
	 	December 25

 

			
	*	 	Saturday

For holidays falling on Saturday, Federal Reserve Banks and Branches will be open the
preceding Friday.

For holidays falling on Sunday, all Federal Reserve offices will be closed the following Monday.

Revised 03/05/08

103

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

5. IRS Requirements for Integrated File and Pay Credit Card
Processors

A. Registration

Each Credit Card Bulk Provider must annually complete the IRS Credit Card Bulk Provider
Registration form below and send (email, mail or fax) to the IRS. The form should be submitted
prior to June 30 to meet the filing deadline for registration. If not received timely, the IRS is
not obligated to honor the form. The mailing address is:

	 	 	 

	Internal Revenue Service

	 	Email address: debbie.a.mccollister@irs.gov
	Attn: Debbie McCollister C8-377
	 	 
	SE:W:CAS:SP:TPM:EP

	 	Fax Number: (202) 283-2531
	5000 Ellin Road
	 	 
	Lanham, MD 20706
	 	 

B. The Credit Card Bulk Provider must sign an agreement stating they will adhere to the following
requirements (Note: The requirements apply to the credit card bulk provider and any
sub-contractors):

	 	1)	 	Convenience Fees: Taxpayers must be notified of the dollar amounts of all
fees to be charged to their credit card in relation to the federal tax payment
including convenience fees and surcharges imposed by software developers. An
acknowledgment or acceptance by the taxpayer of the fees shall be obtained prior to
initiating credit authorizations. The Government shall be notified of the method of
obtaining taxpayers’ acknowledgement before the program commences. The software or
instructions should note that the convenience fee is not charged or received by the
IRS.
	 
	 	2)	 	General Information: Taxpayers will be provided, upon request, IRS general
information in an easily accessible, readable and print ready form through the return
transaction software used by participating tax practitioners/taxpayers.
	 
	 	3)	 	Confirmation Number: All taxpayers shall be provided an electronic
confirmation of payment transactions through the return transmission software used by
participating electronic return originators, tax practitioners or taxpayers.
Taxpayers shall also be notified electronically through the return transmission
software if the credit card authorization is denied.

Revised 03/05/08

104

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	 	4)	 	Reporting Requirements: Documentation formatting and content are subject to inspection,
verification and approval by the IRS Point of Contact (POC). All reports are to be submitted
to the IRS POC via email.

	 	A)	 	Schedule of Performance — This includes a project schedule (WBS) of the development,
testing and implementation critical milestones and beginning and ending dates for each
milestone.
	 
	 	B)	 	Monthly Development Status Reports — The credit card bulk provider shall provide monthly
status reports on the 10th day of each month through the implementation date of the pilot. The
last Monthly Status Report is due in the month following implementation. The report shall cover
the overall progress of the pilot’s development. The report shall contain the following
information:

	 	1.	 	date of report,
	 
	 	2.	 	project manager name,
	 
	 	3.	 	project manager telephone number, fax number and e-mail address
	 
	 	4.	 	a brief description of the work accomplished, emphasizing the progress made since
the last reporting period,
	 
	 	5.	 	a description of any unresolved and/or anticipated problems, if any
(include schedule impacts),
	 
	 	6.	 	an estimate of the percent of work accomplished to date; and a statement on the
status of the pilot as it relates to the work breakdown schedule, either confirming
that the task is on schedule or explaining the nature and extent of the pending
delay.

	 	C)	 	Daily and Monthly Production Reports — The Credit Card Bulk Provider must report
to the IRS on a daily basis during the timeframe of accepting payments. The daily volume
and dollars report is due to the IRS by 9:00 am each business day. Monthly cumulative
reports will be submitted by the
5th day of each month. The reports shall
contain the following information:

	 	1.	 	date of report
	 
	 	2.	 	period covered
	 
	 	3.	 	total number of transactions
	 
	 	4.	 	dollar amount of transactions
	 
	 	5.	 	total number of successful attempts (good authorizations)
	 
	 	6.	 	dollar amount of successful attempts (good authorizations)
	 
	 	7.	 	total number of failed attempts (failed authorizations)

Revised 03/05/08

105

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	 	8.	 	dollar amount of failed attempts (failed authorizations)
	 
	 	9.	 	reasons for failed attempts
	 
	 	10.	 	volume and dollars by tax type
	 
	 	11.	 	volume and dollars by card type
	 
	 	12.	 	customer service activity
	 
	 	13.	 	largest dollar amount
	 
	 	14.	 	aggregate payment volumes by payment type and dollar amount — provided daily
	 
	 	15.	 	historical data should also be provided to compare changes from the prior year

	 	 	 	Each report file shall have its own unique name which includes the application
transaction date. Daily reports should include the daily as well as YTD volumes and
dollars. Monthly reports should include the monthly as well as YTD volumes and
dollars.
	 
	 	D)	 	Workflow — Schematic/Specifications — A detailed description of the functional work
processes and data flow from payment initiation through confirmation,
authorization/denial and taxpayer notification shall be provided to the Government before
the pilot commences.
	 
	 	E)	 	Funds Settlement Timeline — Provide the best-case scenario timeline beginning with
transaction authorization through ACH debit activities.
	 
	 	F)	 	Certification of Test Results — Once the credit card bulk provider/processor has
successfully completed a full circle integrated test (internally and with external
trading partners), the bulk provider shall certify in writing their readiness for use
status to the IRS before commencing production.
	 
	 	G)	 	Incident Report — Any incident that results in any material outages, work stoppages, or
other payment processing problems shall be reported to the IRS POC. The incident will be
documented and emailed to the IRS POC.
The credit card bulk provider will notify the IRS of all incidents within 24 hours of
occurrence or awareness. The incident report is due within 5 business days of occurrence
or awareness of the incident. Documentation should include a description of the incident,
the cause, number of taxpayers impacted and dollars involved, duration and actions taken
to rectify the situation.

Revised 03/05/08

106

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	 	H)	 	Findings Report — The Credit Card Bulk Provider (along with subcontractors)
shall provide an initial and supplemental findings report. .
The report shall describe:

	 	1.	 	the program/application features,
	 
	 	2.	 	the conduct and findings of the program/application as they relate to the
Contractor’s and any subcontractor’s performance (including a summary of all payment
transactions, any problems, changes made during the pilot and lessons learned)
	 
	 	3.	 	recommendations for improvement including changes to the Contractor’s and/or IRS processes, and
	 
	 	4.	 	practitioner and/or client feedback including customer satisfaction survey results.

	 	 	 	The initial report (due June 15) will include activity occurring between January and
April. The supplemental report (due November 30) will include a summary of the initial
report’s findings and activity from May through October.

	 	I)	 	Web Site Statistics — Monthly Report of the number of unique visits to its Web site by
way of a hyperlink from IRS.gov or hyperlink connections to IRS.gov. The report will be
due on the 10th of the following month after the hyperlink is activated.
	 
	 	J)	 	Chargebacks — Provide weekly reports of all 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. These reports are due by close of business each
Friday.

	 	5)	 	The credit card bulk provider shall ensure that a merchant descriptor on the cardholder’s
credit card statement indicates the tax payment amount as a unique line item entitled “U S
Treasury Tax Payment.” The convenience fee must be separately stated on the statement. A
unique identifier, such as the confirmation number, should be posted on the card holder’s
statement to facilitate error resolution.
	 
	 	6)	 	The credit card bulk provider shall ensure that ACH Debit authorizations are initiated
only upon acceptance of the e-filed tax return.

Revised 03/05/08

107

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	 	7)	 	The credit card bulk provider shall ensure that credit card payment transactions are settled
within 48 hours of acceptance of the e-file return. If unable to comply with the settlement
timeframe, an exception must be requested. The exception must outline why the settlement
timeframe cannot be met. FMS charges interest on any funds held overnight from one business
day to the next and shall be reported to FMS. IRS/FMS must approve an exception process
before funds are held overnight.
	 
	 	8)	 	Settlement files shall be forwarded to the Treasury Financial Agent each business day. The
credit card bulk provider shall ensure that settled credit card payments, where the
authorization date is less than 11 days prior to the date the settlement file are forwarded
to the Treasury Financial Agent (TFA).
	 
	 	9)	 	The credit card bulk provider shall ensure that credit card authorization logs are retained
for 72 months from the date of each transaction. The information in such logs shall include
the transaction dates, times cardmember account number and expiration date, amount of
transaction, and approval code. Retention of e-file information for 36 months following the
end of each tax filing season.
	 
	 	10)	 	The credit card bulk provider shall ensure an accuracy rate to the Government of 99% or
higher for transmitted transaction data as provided by the taxpayer. This includes accuracy of
electronic payment data resulting from intermediate actions taken by the Credit Card Bulk
Provider necessary for coding, applying and transmitting payment data to the Government.
	 
	 	11)	 	The credit card bulk provider must provide only guaranteed payments to the Government
for the ACH debit file.
	 
	 	12)	 	Forward settlement files to the TFA one business day prior to settlement.
	 
	 	13)	 	Funds must be available in the credit card bulk provider’s designated bank account one
business day after the settlement file is submitted.
	 
	 	14)	 	The credit card bulk provider shall schedule testing with the TFA as early as possible.
Provide the TFA with a test plan and test cases if need be. Once completed, provide the
certification, from the TFA, to the IRS point of contact by the date specified by the IRS. Ensure
that the TFA is aware of the certification date when coordinating the test effort.

Revised 03/05/08

108

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	 	15)	 	The credit card bulk provider shall ensure that all credit card discount fees
and other transaction fees are paid.
	 
	 	16)	 	The credit card bulk provider shall inform the IRS of plans to market the program
and provide copies of all materials such as newsletters, software packaging, inserts, and
ads for approval.
	 
	 	17)	 	Disclosure — The confidentiality of any information relating to Federal credit card
payments completed in a single transaction must be maintained. 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. Information collected during this
transaction shall not be disclosed or used for any purpose prohibited by Section 6311 of
the Internal Revenue Code or Treasury Regulation section 301.6311-2.
	 
	 	18)	 	The credit card bulk provider and its subcontractors are subject to and shall comply
with Section 6311 of the Internal Revenue Code or Treasury Regulation section 301.6311-2
regarding credit card payments.
	 
	 	19)	 	Chargebacks — Process chargeback actions in accordance with the IRS’s written
procedures. This shall include reimbursing the Contractor for unauthorized charges that are
substantiated by the cardholder and approved by the Contractor’s duly authorized management
representative. The Contractor must 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. IRS reserves the right to deny any chargeback request that does not
conform to the requirements

C. The IRS will provide the following items:

	 	1)	 	An electronic copy of General Information for Taxpayers which is required to
be included in the software.
	 
	 	2)	 	A hyperlink from the IRS Web site to the credit card bulk provider’s web
site. The link will be established within the electronic services page of www.irs.gov.
	 
	 	3)	 	Provide chargeback procedures for handling erroneous credit card payments.

Revised 03/05/08

109

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	D.	 	The IRS in conjunction with FMS will determine the Treasury Financial Agent (TFA), that the
credit card bulk provider will be assigned; currently Bank of America.
	 
	E.	 	Non-compliance with any of the requirements may result in the termination of the agreement and
the termination of acceptance of credit card payments.

Revised 03/05/08

110

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

IRS Annual Credit Card Bulk Provider Registration

	 	 	 

	Company Name
	 	Employer Identification Number
	 

 

Name of Parent Company (if applicable)

 
Address

	 	 	 	 	 

	 
	City
	 	State
	 	Zip
	 

 

Type of Credit Cards to be Accepted (AMEX, DISC, MC, VISA)

	 	 	 

	 
	Tax Types Accepted (1040, 4868s, etc.)
	 	Type /Brand Name of Software to be Used
	 

 

Orientation of software (desktop, web based, taxpayers online, practitioners, etc)

 

Convenience Fees Charged to Taxpayers (all fees need to be presented)

	 	 	 	 	 

	 
	Projected Volumes
	 	CC Application Implementation Date
	 	Ending date
	 

 

Name of Subcontractors

	 	 	 	 	 

	 
	Project Manager’s Name
	 	Telephone #
	 	e-mail address
	 

Revised 03/05/08

111

 

Attachment 3, Appendix B

	 	 	 

	

	 	2009 Credit Card Bulk Provider Requirements

	IRS CREDIT CARD BULK PROVIDER AGREEMENT

In accordance with the specifications and requirements of the 2009 Credit Card Bulk Provider
Requirements and the related Registration, the undersigned (Credit Card Bulk Provider) hereby
acknowledge, in agreement with the IRS, to the following:

(1) All requirements listed in the Credit Card Bulk Provider Requirements will be complied with.

(2) Any non-compliance with the requirements may result in termination of this agreement and
ability to participate in the credit card bulk provider application.

	 	 	 	 	 
	 	 	 
	 	 
	Name of the Bulk Provider 	 
	 	 	 	 

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

ACCEPTED AS OF ___(date)______,

	 	 	 	 	 
	Internal Revenue
Service 	 
	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

Revised 03/05/08

112

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

			
	[4830-01-p]
	 	Published December 14, 2001

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

 [TD 8969]

RIN 1545-AW37

Payment by Credit Card and Debit Card

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

 SUMMARY: This document contains
final regulations authorizing the Commissioner to accept payment of internal revenue taxes by
credit card or debit card and limit the use and disclosure of information relating to payment of
taxes by credit card and debit card. Additionally, the final regulations provide that payments of
tax by check or money order should be made payable to the United States Treasury. The final
regulations reflect changes to the law made by the Taxpayer Relief Act of 1997 and affect persons
who pay their tax liabilities by credit card, debit card, check, or money order.

DATES: Effective Date: These final regulations are effective
December 14, 2001.

     Applicability Date: For dates of applicability, see
§301.6311-2(h).

FOR FURTHER INFORMATION CONTACT: Brinton Warren (202) 622-4940
(not a toll-free number).

 

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

SUPPLEMENTARY INFORMATION:

Background

     This document contains final regulations amending the Procedure and Administration Regulations
(26 CFR part 301) under sections 6103 and 6311 of the Internal Revenue Code (Code). The final
regulations reflect the amendment of sections 6103 and 6311 by section 1205 of the Taxpayer Relief
Act of 1997, Public Law 105-34 (111 Stat. 788) (TRA 1997); section 4003(k) of the Tax and Trade
Relief Extension Act of 1998, Public Law 105-277 (112 Stat. 2681)(TREA 1998); and section 3703 of
the Internal Revenue Service Restructuring and Reform Act of 1998, Public Law 105-206 (112 Stat.
685)(RRA 1998).

     On December 15, 1998, the IRS and Treasury published temporary regulations (TD 8793) in the
Federal Register (63 FR 68995). A notice of proposed rulemaking (REG-111435-98) cross-referencing
the temporary regulations was published on the same day in the Federal Register (63 FR 69031).
(References herein to the proposed regulations shall be to the temporary regulations.) No public
hearing was requested or held. Two written comment letters were received. After consideration of
the comments, the proposed regulations are adopted as revised by this Treasury decision, and the
corresponding temporary regulations are removed. The comments and revisions are discussed below.

2

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

Explanation of Provisions

     Section 301.6311-1 currently provides that checks or money orders should be made payable to
the Internal Revenue Service. Section 3703 of RRA 1998 states that the Secretary of the Treasury
shall establish such rules, regulations, and procedures as are necessary to allow payment of taxes
by check or money order payable to the United States Treasury. The amendment to § 301.6311-1
accordingly provides that checks and money orders should be made payable to the United States
Treasury.

     As amended by section 1205 of TRA 1997, section 6311(a) provides that it shall be lawful for
the Secretary of the Treasury to receive payment for internal revenue taxes by any commercially
acceptable means that the Secretary deems appropriate, to the extent and under the conditions
provided in regulations prescribed by the Secretary. The legislative history accompanying TRA 1997
explains that commercially acceptable means include “electronic funds transfers, including those
arising from credit cards, debit cards, and charge cards.” H.R. Conf. Rep. No. 105-220, at 652
(1997). The current regulations under § 301.6311-1 permit payment of taxes by checks, drafts drawn
on financial institutions, or money orders. The final regulations add payments by credit cards
(which includes charge cards) and debit cards to the acceptable methods of payment under section
6311. Section 6302 and the regulations thereunder remain the

3

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

authority for forms of payment by electronic funds transfer other
than payment by credit card or debit card.

     Only credit cards or debit cards approved by the
Commissioner may be used for payment of internal revenue taxes under section 6311, only the types
of tax liabilities specified by the Commissioner may be paid by credit card or debit card, and all
such payments must be made in the manner and in accordance with the forms, instructions, and
procedures prescribed by the Commissioner. The Commissioner has entered into contracts with third
party service providers who will process the credit and debit card transactions. The Commissioner
may not impose any fee on persons making payment of taxes by credit card or debit card. However,
other persons participating in the program, including third party service providers who process
credit or debit card transactions, are not prohibited from charging fees.

     The final regulations provide, as required by section 6311(d)(3), that the payment of taxes by
credit card or debit card is subject to the error resolution procedures of section 161 of the Truth
in Lending Act (TILA) (15 U.S.C. 1666), section 908 of the Electronic Fund Transfer Act (EFTA) (15
U.S.C. 1693f), or any similar provisions of state or local law. The payment, however, is subject to
the error resolution procedures of these statutes only for the purpose of resolving errors relating
to the credit card or debit card account, and not for the purpose of resolving any errors,
disputes, or adjustments relating to the

4

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

underlying tax liability. These provisions ensure that any disputes concerning the merits of
the tax liability will be resolved in the traditional administrative and judicial forums (e.g., by
filing a petition in Tax Court or by paying the disputed tax and filing a claim for refund), and
will not be raised in any dispute with the card issuer, financial institution, or other person
participating in the credit card or debit card transaction.

     As authorized by section 6311(d)(3)(E), the final regulations permit the Commissioner to
return funds erroneously received due to errors relating to the credit card or debit card account
by arranging for a credit to the taxpayer’s account with the issuer of the credit card or debit
card or other appropriate financial institution or person. Returns of funds through credit card or
debit card account credits, however, are available only to correct errors relating to the credit
card or debit card account, and not to refund overpayments of taxes.

     The final regulations also provide the procedures required under sections 6103(k)(9) and
6311(e) with respect to the use and disclosure of information relating to payment of taxes by
credit card and debit card. Section 1205(c)(1) of TRA 1997 (as amended by section 6012(b)(2) of RRA
1998) added section 6103(k)(9), which authorizes the IRS to disclose returns and return information
to financial institutions and others to the extent necessary for the administration of section
6311. Section

5

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

6103(k)(9) further provides that disclosures of information for purposes other than to accept
payments by check or money order (for example, to accept payment by credit card or debit card)
shall be made only to the extent authorized by written procedures promulgated by the Secretary.
Section 6311(e) provides that no person shall use or disclose any information relating to credit
card or debit card transactions obtained pursuant to section 6103(k)(9), except to the extent
authorized by written procedures promulgated by the Secretary.

     Pursuant to section 6311(e), the final regulations provide that information received by any
person in connection with the payment of tax by credit card or debit card shall be treated as
confidential by all persons who receive such information, whether such information is received from
the IRS or from any other person, including the taxpayer. IRS personnel are authorized to disclose
to card issuers, financial institutions, and other persons information necessary to process the tax
payment or to bill or collect the amount charged or debited (for example, to resolve billing
errors).

     The final regulations set forth the limited purposes and activities for which such information
may be used or disclosed by card issuers, financial institutions, and other persons. The permitted
purposes and activities principally involve credit card and debit card processing, billing,
collection, account servicing, account transfers, internal business records, legal

6

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

compliance, and legal proceedings. The final regulations expressly prohibit the selling of
information, the sharing of information with credit bureaus, or the use of information for any
marketing purpose. Any person who uses or discloses information in violation of section 6311(e) is
subject to civil liability for damages under section 7431(a)(2). See section 7431(h), added by
section 1205(c)(2) of TRA 1997 (as amended by section 6012(b)(3) of RRA 1998).

Summary of Comments

     Commentators recommended that the final regulations be amended to permit the IRS to compensate
private sector companies for the services they provide in connection with the payment of taxes by
credit and debit card. However, section 6311(d)(2) prohibits the payment of such compensation.
Thus, the final regulations do not adopt this recommendation.

     Commentators also recommended that the final regulations incorporate by reference the
applicable regulations and staff commentaries adopted by the Federal Reserve Board under the
provisions of TILA and EFTA referenced in the final regulations. The final regulations do not adopt
this recommendation because the references in section 6311 and the final regulations to section 161
of TILA and section 908 of EFTA are sufficient to make the Federal Reserve Board regulations and
other legal guidance under section 161 of TILA and section 908 of EFTA

7

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

applicable to the payment of taxes by credit card or debit card,
except as explicitly excepted in sections 6311(d)(3)(A) and (C).

     Commentators also recommended a clarification of
§ 301.6311-2T(c)(2) of the temporary regulations, which provides that the United States has a lien
for the guaranteed amount of a transaction upon all the assets of the institution making the
guarantee if the United States is not duly paid after the taxpayer tenders a payment of taxes by
credit card or debit card. The commentators note that the mere tendering of payment by credit card
or debit card is not sufficient for the United States to have a lien. Rather, the parties involved
in the transaction must also follow the applicable procedures required to authorize the transaction
and to obtain the guarantee. Thus, the commentators recommended that language be added to the final
regulations to provide that the United States will not have a lien unless the parties involved
follow the procedures required to authorize the transaction and obtain a guarantee.

     Under the temporary regulations, the financial institution must expressly guarantee the
payment in order for the United States to have a lien on the assets of the institution making the
guarantee. The financial institution’s express guarantee will arise only if the applicable
procedures necessary to authorize the transaction and obtain the guarantee are properly followed.
Additional language in the final regulations is therefore unnecessary.

8

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

     One commentator questioned the use of the term commercial transactions in §
301.6311-2T(d)(2)(D). The commentator recommended removing the word commercial because, in general,
TILA does not apply to commercial transactions. The final regulations adopt this recommendation by
replacing §301.6311-2T(d)(2)(D) in the final regulations with a provision covering other types of
errors similar to the ones explicitly covered by error resolution procedures in the final
regulations.

     One commentator recommended clarification of §301.6311-2T(g)(3)(i), which prohibits use or
disclosure of information relating to credit and debit card transactions for purposes related to
the sale or exchange of such information separate from the underlying receivable or account. The
commentator stated that this provision conflicts with other provisions in the temporary regulations
that specifically permit an exchange of credit and debit card information to process credit and
debit card transactions and resolve billing errors without a sale or exchange of the underlying
receivable or account. The commentator’s concern stems from an ambiguity created by the use of the
term exchange. To avoid confusion, the final regulations replace exchange with transfer for
consideration.

Explanation of Other Revisions

     Other changes to the final regulations include the
following. First, the final regulations clarify that sending

9

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

receipts or confirmation of a transaction to the taxpayer, including secured electronic
transmissions and facsimiles, is a permissible disclosure. See §301.6311-2(g)(1)(i)(E). Second, the
final regulations clarify that disclosure of information necessary to complete a transaction by the
taxpayer with a state or local government agency (for example, to pay state or local tax by credit
card or debit card) is a permissible disclosure when explicitly authorized by the taxpayer. This
allows a taxpayer to make a state or local tax payment immediately after making a federal tax
payment without requiring the taxpayer to reenter information (for example, name and Taxpayer
Identification Number). See §301.6311-2(g)(1)(i)(F). Third, the final regulations provide that the
term tax as used in these final regulations includes interest, penalties, additional amounts, and
additions to tax. See §301.6311-2(a)(1). The temporary regulations did not refer to additional
amounts.

Special Analyses

     It has been determined that this Treasury decision is not a significant regulatory action as
defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has
been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does
not apply to these final regulations, and because these final regulations do not impose a
collection of information on small entities, the

10

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Therefore, a Regulatory
Flexibility Analysis is not required. Pursuant to section 7805(f) of the Code, the notice of
proposed rulemaking preceding these final regulation was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact on small business.

Drafting Information

     The principal author of these final regulations is R. Bradley Taylor of the Office of
Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial
Practice Division).

List of Subjects in 26 CFR Part 301

     Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes, Penalties, Reporting
and recordkeeping requirements.

Adoption of Amendments to the Regulations

	 	 	Accordingly, 26 CFR part 301 is amended as follows:

PART 301—PROCEDURE AND ADMINISTRATION

     Paragraph 1. The authority citation for part 301 is amended by adding entries in numerical
order to read in part as follows:

     Authority: 26 U.S.C. 7805 * * *

     Section 301.6103(k)(9)-1 also issued under 26 U.S.C. 6103(k)(9) and 26 U.S.C. 6103(q). * * *

     Section 301.6311-2 also issued under 26 U.S.C. 6311. * * *

     Par. 2. Section 301.6103(k)(9)-1 is added to read as follows:

11

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

§301.6103(k)(9)-1 Disclosure of returns and return information relating to payment of tax by
credit card and debit card.

     Officers and employees of the Internal Revenue Service may disclose to card issuers, financial
institutions, or other persons such return information as the Commissioner deems necessary in
connection with processing credit card and debit card transactions to effectuate payment of tax as
authorized by § 301.6311-2. Officers and employees of the Internal Revenue Service may disclose
such return information to such persons as the Commissioner deems necessary in connection with
billing or collection of the amounts charged or debited, including resolution of errors relating to
the credit card or debit card account as described in § 301.6311-2(d).

§301.6103(k)(9)-1T [Removed]

     Par. 3. Section 301.6103(k)(9)-1T is removed.

§301.6311-1 [Amended]

     Par. 4. In section 301.6311-1, paragraph(a)(1)(i) is revised by removing the language
“Internal Revenue Service” from the third sentence and adding the language “United States Treasury”
in its place.

     Par. 5. Section 301.6311-2 is added to read as follows:

§301.6311-2 Payment by credit card and debit card.

     (a) Authority to receive—(1) Payments by credit card and
debit card. Internal revenue taxes may be paid by credit card or

12

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

debit card as authorized by this section. Payment of taxes by credit card or debit card
is voluntary on the part of the taxpayer. Only credit cards or debit cards approved by the
Commissioner may be used for this purpose, only the types of tax liabilities specified by the
Commissioner may be paid by credit card or debit card, and all such payments must be made in the
manner and in accordance with the forms, instructions and procedures prescribed by the
Commissioner. All references in this section to tax also include interest, penalties, additional
amounts, and additions to tax.

     (2) Payments by electronic funds transfer other than payments by credit card and
debit card. Provisions relating to payments by electronic funds transfer other than payments by
credit card and debit card are contained in section 6302 and the Treasury Regulations promulgated
pursuant to section 6302.

     (3) Definitions—(i) Credit card means any credit card as defined in section
103(k) of the Truth in Lending Act (15 U.S.C. 1602(k)), including any credit card, charge card, or
other credit device issued for the purpose of obtaining money, property, labor, or services on
credit.

     (ii) Debit card means any accepted card or other means of access as defined in section
903(1) of the Electronic Fund Transfer Act (15 U.S.C. 1693a(1)), including any debit card or
similar device or means of access to an account issued for the purpose of initiating electronic
fund transfers to obtain money,

13

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

property, labor, or services.

     (b) When payment is deemed made. A payment of tax by credit card or debit card shall
be deemed made when the issuer of the credit card or debit card properly authorizes the
transaction, provided that the payment is actually received by the United States in the ordinary
course of business and is not returned pursuant to paragraph (d)(3) of this section.

     (c) Payment not made—(1) Continuing liability of taxpayer. A taxpayer
who tenders payment of taxes by credit card or debit card is not relieved of liability for such
taxes until the payment is actually received by the United States and is not required to be
returned pursuant to paragraph (d)(3) of this section. This continuing liability of the taxpayer is
in addition to, and not in lieu of, any liability of the issuer of the credit card or debit card or
financial institution pursuant to paragraph (c)(2) of this section.

     (2) Liability of financial institutions. If a taxpayer has tendered a payment of
internal revenue taxes by credit card or debit card, the credit card or debit card transaction has
been guaranteed expressly by a financial institution, and the United States is not duly paid, then
the United States shall have a lien for the guaranteed amount of the transaction upon all the
assets of the institution making such guarantee. The unpaid amount shall be paid out of such assets
in preference to any other claims whatsoever against such guaranteeing institution, except

14

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

the necessary costs and expenses of administration and the reimbursement of the United States
for the amount expended in the redemption of the circulating notes of such institution.

     (d) Resolution
of errors relating to the credit card or debit card
account—(1) In general. Payments of taxes by credit card or debit card shall be
subject to the applicable error resolution procedures of section 161 of the Truth in Lending Act
(15 U.S.C. 1666), section 908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), or any similar
provisions of state or local law, for the purpose of resolving errors relating to the credit card
or debit card account, but not for the purpose of resolving any errors, disputes or adjustments
relating to the underlying tax liability.

     (2) Matters covered by error resolution procedures. (i) The error resolution
procedures of paragraph (d)(1) of this section apply to the following
types of errors —

     (A) An incorrect amount posted to the taxpayer’s account as a result of a computational error,
numerical transposition, or similar mistake;

     (B) An amount posted to the wrong taxpayer’s account;

     (C) A transaction posted to the taxpayer’s account without the taxpayer’s authorization; and

     (D) Other similar types of errors that would be subject to resolution under section 161 of the
Truth in Lending Act (15 U.S.C. 1666), section 908 of the Electronic Fund Transfer Act (15

15

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

U.S.C. 1693f), or similar provisions of state or local law.

     (ii) An error described in paragraph (d)(2)(i)of this section may be resolved only through the
procedures referred to in paragraph (d)(1) of this section and cannot be a basis for any claim or
defense in any administrative or court proceeding involving the Commissioner or the United States.

     (3) Return of funds pursuant to error resolution procedures. Notwithstanding
section 6402, if a taxpayer is entitled to a return of funds pursuant to the error resolution
procedures of paragraph (d)(1) of this section, the Commissioner may, in the Commissioner’s sole
discretion, effect such return by arranging for a credit to the taxpayer’s account with the issuer
of the credit card or debit card or any other financial institution or person that participated in
the transaction in which the error occurred.

     (4) Matters not subject to error resolution procedures. The error resolution
procedures of paragraph (d)(1) of this section do not apply to any error, question, or dispute
concerning the amount of tax owed by any person for any year. For example, these error resolution
procedures do not apply to determine a taxpayer’s entitlement to a refund of tax for any year for
any reason, nor may they be used to pay a refund. All such matters shall be resolved through
administrative and judicial procedures established pursuant to the Internal Revenue Code and the
rules and regulations thereunder.

16

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

     (5) Section 170 of the Truth in Lending Act not applicable. Payments of
taxes by credit card or debit card are not subject to section 170 of the Truth in Lending Act (15
U.S.C. 1666i) or to any similar provision of state or local law.

     (e) Fees or charges. The Internal Revenue Service may not impose any fee or charge on
persons making payment of taxes by credit card or debit card. This section does not prohibit the
imposition of fees or charges by issuers of credit cards or debit cards or by any other financial
institution or person participating in the credit card or debit card transaction. The Internal
Revenue Service may not receive any part of any fees that may be charged.

     (f) Authority to enter into contracts.
The Commissioner may enter into contracts related to receiving payments of tax by credit card
or debit card if such contracts are cost beneficial to the Government. The determination of whether
the contract is cost beneficial shall be based on an analysis appropriate for the contract at issue
and at a level of detail appropriate to the size of the Government’s investment or interest. The
Commissioner may not pay any fee or charge or provide any other monetary consideration under such
contracts for such payments.

     (g) Use and disclosure of information relating to payment of taxes by credit card and
debit card. Any information or data obtained directly or indirectly by any person other than
the taxpayer in connection with payment of taxes by a credit card or

17

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

debit card shall be treated as confidential, whether such information is received from
the Internal Revenue Service or from any other person (including the taxpayer).

     (1) No person other than the taxpayer shall use or disclose such information except as follows–

     (i) Card issuers, financial institutions, or other persons participating in the credit card or
debit card transaction may use or disclose such information for the purpose and in direct
furtherance of servicing cardholder accounts, including the resolution of errors in accordance with
paragraph (d) of this section. This authority includes the
following—

     (A) Processing the credit card or debit card transaction, in all of its stages through and
including the crediting of the amount charged on account of tax to the United States Treasury;

     (B) Billing the taxpayer for the amount charged or debited with respect to payment of the tax
liability;

     (C) Collecting the amount charged or debited with respect to payment of the tax liability;

     (D) Returning funds to the taxpayer in accordance with paragraph (d)(3) of this section;

     (E) Sending receipts or confirmation of a transaction to the taxpayer, including secured
electronic transmissions and facsimiles; and

     (F) Providing information necessary to make a payment to state or local government agencies,
as explicitly authorized by

18

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

the taxpayer (e.g., name, address, taxpayer identification number).

     (ii) Card issuers, financial institutions or other persons participating in the credit card or
debit card transaction may use and disclose such information for the purpose and in direct
furtherance of any of the following activities—

     (A) Assessment of statistical risk and profitability;

     (B) Transfer of receivables or accounts or any interest therein;

     (C) Audit of account information;

     (D) Compliance with federal, state, or local law; and

     (E) Cooperation in properly authorized civil, criminal, or regulatory investigations by
federal, state, or local authorities.

     (2) Notwithstanding the provisions of paragraph (g)(1), use or disclosure of information
relating to credit card and debit card transactions for purposes related to any of the following is
not authorized–

     (i) Sale of such information (or transfer of such information for consideration)
separate from a sale of the underlying account or receivable (or transfer of the
underlying account or receivable for consideration);

     (ii) Marketing for any purpose, such as, marketing tax-related products or
services, or marketing any product or service that targets those who have used a
credit card or debit card to

19

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

pay taxes; and

     (iii) Furnishing such information to any credit reporting agency or credit bureau, except with
respect to the aggregate amount of a cardholder’s account, with the amount attributable to payment
of taxes not separately identified.

     (3) Use and disclosure of information other than as authorized by this paragraph (g) may
result in civil liability under sections 7431(a)(2) and (h).

20

 

					
	 
	 	Treasury Regulation 301.6311-2
	 	Attachment 3, Appendix C

     (h) Effective date. This section applies to payments of
taxes made on and after December 14, 2001.

§301.6311-2T [Removed]

     Par. 6. Section 301.6311-2T is removed.

Deputy Commissioner of Internal Revenue.

Approved:

Acting Assistant Secretary of the Treasury.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]