IRS Publication 5033 – Financial institutions, state and local government agencies, law enforcement, and IRS internal units play a critical role in combating tax refund fraud. IRS Publication 5033, titled IRS External Leads Program: Fact Sheet on Submitting Leads, serves as the official resource for submitting questionable federal tax refunds to the IRS.
This fact sheet (Revision 3-2022, posted December 12, 2022) remains the current authoritative guidance as of 2026, actively referenced in IRS Internal Revenue Manual (IRM) 25.25.8 procedures updated through November 2025. Download the official PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/p5033.pdf.
What Is the IRS External Leads Program?
The IRS Return Integrity and Compliance Services (RICS) External Leads Program receives and processes leads on questionable federal tax refunds, along with associated Automated Clearing House (ACH) credits returned by financial institutions.
External Leads works with IRS Submission Processing to screen, validate, and—if confirmed questionable—request the return of funds to reconcile taxpayer accounts. The program handles leads involving:
- Treasury checks
- Direct deposits/ACH
- Refund anticipation loans/checks
- Prepaid debit cards
Leads come from financial institutions nationwide, state/local agencies, law enforcement, and internal IRS business units. Accurate submissions help the IRS recover improper refunds efficiently while protecting legitimate taxpayers.
Who Uses IRS Publication 5033?
Publication 5033 targets entities that identify suspicious tax refunds, primarily financial institutions (banks, credit unions, etc.). It also applies to:
- State and local government agencies
- Law enforcement
- IRS internal units
The fact sheet details standardized processes to ensure secure, accurate submissions containing personally identifiable information (PII).
Definition of an “External Lead”
An External Lead involves a questionable federal tax refund reported by financial institutions or other authorized sources. It includes refunds delivered via Treasury checks, direct deposits/ACH, refund anticipation loans/checks, or prepaid debit cards that appear fraudulent, involve identity theft, name mismatches, or other red flags.
Standardized External Leads Spreadsheet: Required Fields
The IRS provides a standard spreadsheet (available upon request) for submissions. It captures critical PII to identify funds and enable accurate processing. Key fields include:
- Lead Number (IRS use only)
- Source Point-of-Contact Info (Name, Email, etc.)
- Date
- Tax Period/Year
- Amount of Refund Available for Recovery
- Treasury Check Number (if applicable)
- Date of Original Deposit
- Amount of Original Deposit
- Debit Card Number (if applicable)
- Reason for Referral (e.g., Suspicious W-2, ID theft, name mismatch)
- Accountholder’s SSN/EIN
- Last Name / First Name
- Name/DBA on Refund Check or ACH Deposit (if different)
- Payee’s SSN/EIN
- Address, City, State, Zip Code
- Email Address
- IP Address
- RTN (Routing Transit Number)
- Account Number
Security note: Email the spreadsheet with a secure password. Provide the password in a separate email (the same password can be reused throughout the filing season).
Step-by-Step: How to Submit Leads to the IRS (Per Publication 5033)?
Follow this high-level process for compliant submissions:
- Prepare and Email the Lead (Financial Institutions)
- Use the standardized External Leads spreadsheet.
- Email to: [email protected] (copy [email protected] as Program POC).
- Subject Line: Include financial institution name, date, and “External Leads” (e.g., “Any Bank, 01/12/2026, External Leads”).
- Email Body must include:
- Reason for questionable lead/return
- Point-of-contact details (name, title, phone/fax, email)
- Physical street address of the institution (no P.O. Boxes)
- RTN of the institution
- Note if paper check is needed or if indemnification letter goes to a different contact
- Attach the completed spreadsheet.
- IRS Acknowledgment and Research
The IRS sends an acknowledgment email with a unique Lead Number (use for all future reference). The External Leads team researches the accounts (typically within ~10 business days). - IRS Requests Repayment Amount
The IRS notifies the institution of the exact amount to return and provides an indemnification letter before funds are transmitted. - Return the Funds (see section below for methods).
- IRS Reconciles Accounts
The External Leads team works with Submission Processing to adjust taxpayer accounts based on recovered refunds.
How to Return Funds to the IRS?
Preferred Method: Electronic via Bureau of Fiscal Service (BFS) ACH Credit Gateway
- Any entity able to submit ACH Fedwire deposits can use the Credit Gateway.
- After IRS notification, use the provided Account Locator Number (ALC) and Gateway Account number.
- Before transmission, email [email protected] with Lead Number(s), ALC, and expected deposit date.
- In the Credit Gateway “Receiving Company Field,” include: date (MM/DD), lead number, bank name, “BL” (for bank lead), and Tax Class Code 20X0903.
Alternative: Paper Check
Contact [email protected] for assistance if the Credit Gateway is unavailable.
Rejected Direct Deposit Opt-In Program (R17 Process)
Financial institutions participating in the External Leads Program (or NACHA direct members) can opt into the Rejected Direct Deposit Opt-In Program. This voluntary NACHA program (launched 2013, ongoing) uses Return Reason Code R17 to reject questionable direct deposits of current- or prior-year tax refunds.
Addenda Information Field codes distinguish rejection types:
- 17 — Name Mismatch (includes SSN mismatch)
- 18 — Identity Theft
- 19 — Questionable Refund
Full refunds return automatically to the IRS via ACH. The IRS then freezes the refund for review. Refunds must be returned within 60 days of the original settlement date (extensions possible with IRS approval).
Benefits: Uniform process, faster recovery of fraudulent refunds, protection for legitimate taxpayers. Participation is voluntary but strongly encouraged by IRS and NACHA. Register via NACHA (no deadline).
A similar opt-in program exists for state tax refunds.
What Happens After Submission?
- IRS research confirms or clears the lead.
- Funds returned are processed and applied to reconcile accounts.
- Taxpayers may receive IRS correspondence; financial institutions should direct account holder inquiries to the IRS (funds processing can take 6–8 weeks).
- The group mailbox ([email protected]) is for authorized users only.
Frequently Asked Questions (From Publication 5033)
- What is the Opt-In Program? A voluntary NACHA agreement allowing use of R17 for specific IRS refund rejections.
- Is participation mandatory? No—voluntary, but encouraged.
- Can I register anytime? Yes.
- Who is eligible? IRS External Leads participants or NACHA direct members.
Official Program Contact Information
- NACHA: Amy Morris, Senior Director ACH Network Rules – [email protected]
- BFS: Lisa Andre, Deputy Project Manager PPS – [email protected]
- IRS External Leads Program: Kristen Landreth, Policy & Analysis Chief – [email protected]
- Submission mailbox: [email protected] (copy [email protected])
Why Follow IRS Publication 5033?
Accurate lead submissions help the IRS recover billions in fraudulent refunds, reduce taxpayer fraud losses, and maintain trust in the tax system. Non-compliance or unsecured PII can delay processing or require additional IRS outreach.
For the most current procedures, always refer to the official PDF and the latest IRS IRM 25.25.8 (Revenue Protection External Lead Procedures).
Download IRS Publication 5033 Now: https://www.irs.gov/pub/irs-pdf/p5033.pdf
Financial institutions and authorized partners: Use this fact sheet as your primary reference for submitting external leads. Proper adherence ensures efficient fund recovery and supports IRS efforts against refund fraud.
This article summarizes official IRS guidance from Publication 5033 (Rev. 3-2022) and related IRM references. For official use, consult the PDF and current IRS procedures directly.