How to Handle Presentments Using Accepted for Value (A4V)


When you receive a "presentment" (such as a bill or statement) from an entity you have a standing contract with—such as one tied to your Social Security number—reframe your perspective. Instead of viewing it as a bill you must pay, recognize that you may not owe anything. When you initially set up the account, you provided significant value (e.g., through your Social Security number or credit), which the entity has not compensated you for. This guide outlines the steps to process a presentment using the "Accepted for Value" (A4V) method, ensuring proper handling of the documents and mailing procedures.Key Principles
  • A "presentment" typically includes a top portion (the statement) and a bottom portion (the payment coupon or stub).
  • The A4V process requires two instruments: the top of the statement and the payment coupon (or a substitute, like a $1 bill, if no coupon exists).
  • Avoid using the return envelope provided by the company. Instead, use your own envelope, marked appropriately, and send it to the Chief Financial Officer (CFO) via registered or certified mail.
General Mailing Instructions
  1. Use Your Own Envelope: Do not use the provided return envelope. Address your envelope to the CFO of the company.
  2. Mark the Envelope: Write "Private and Confidential" in red ink to the left of the recipient’s address. Under your return address, write "Priority/Confidential."
  3. Mail Securely: Send via "Registered Mail with Electronic Signature Confirmation" or "Certified/Registered with Return Receipt Requested."
  4. Include Additional Documents (optional, as needed):
    • A cover letter addressed to the CFO or account overseer.
    • A Fiduciary Contract with Form 56, designating the CFO as the fiduciary for your account(s).
    • A Form 1040V with all A4V documents.
  5. Keep Copies: Retain copies of everything you send.
Special NoteTo keep an account open (e.g., a credit card), do not pay the full amount owed. Instead, pay slightly less (e.g., $10 below the total) to avoid account closure.
Format #1: Making a Payment Without Closing the AccountThis format is suitable for recurring bills, such as utilities (e.g., power or water bills), where you want to maintain the account.
  1. Mark the Statement:
    • On the top portion of the bill, write the following in red ink, angled corner to corner:
      Accepted for Value and Returned for Value
Date: [Your Date of Birth]
Exemption #: [Bond Number from Back of Social Security Card, e.g., A12345678]
[Your Signature, Without "Authorized Representative"]
    • If your Social Security card lacks a bond number, apply for a new card using Form SS-5 (available at www.ssa.gov/online/ss-5.pdf).
  2. Prepare the Payment Coupon:
    • Detach the coupon/stub (the part labeled “detach and send with payment”).
    • In the lower right-hand corner, above any printed numbers, sign your name as it appears on your Certificate of Live Birth.
    • In the payment amount box, write the total invoice amount plus a small additional sum (e.g., $5–$10) to prevent account closure.
    • Flip the coupon over and endorse the back as you would a check, including:
      By: [Your Name], Authorized Representative
  3. Mail:
    • Send the marked statement and endorsed coupon to the CFO using the mailing instructions above.
Format #2: Paying Off and Closing an AccountUse this format to fully settle accounts, such as car loans, credit cards, or mortgages.
  1. Mark the Statement:
    • On the top portion of the statement, write in red ink, angled corner to corner:
      Accepted for Value and Returned for Value for Settlement, Closure, and Setoff
Date: [Your Date of Birth]
Exemption #: [Bond Number from Back of Social Security Card]
[Your Signature, Without "Authorized Representative"]
  2. Request a Payoff Statement:
    • Contact the company to request a payoff presentment, which provides the exact amount needed to close the account.
    • If the payoff presentment lacks a coupon, attach a $1 bill to serve as the second instrument.
  3. Timing Considerations:
    • If you made a down payment at the time of purchase, the contract is binding, and you can process the A4V immediately.
    • If no down payment was made, wait 30 days for the contract to "cure," then wait an additional 2–3 weeks before processing the A4V.
  4. Mail:
    • Send the marked statement (and $1 bill, if applicable) to the CFO using the mailing instructions above.
Format #3: Statements Without a CouponFor presentments without a detachable coupon:
  1. Mark the Statement:
    • Write in red ink, angled corner to corner:
      Accepted for Value and Returned for Value
(For Settlement, Closure, and Setoff, if applicable)
Date: [Your Date of Birth]
Exemption #: [Bond Number from Back of Social Security Card]
[Your Signature, Without "Authorized Representative"]
  2. Include a Second Instrument:
    • Attach a $1 Federal Reserve Note (FRN) to serve as the second instrument.
  3. Mail:
    • Send to the CFO using the mailing instructions above.
Format #4: IRS Presentments (With or Without a Coupon)For IRS-related presentments:
  1. Mark the Presentment:
    • Write in red ink, angled corner to corner:
      Accepted for Value and Returned for Value for Settlement, Closure, and Setoff
Date: [Your Date of Birth]
Exemption #: [Bond Number from Back of Social Security Card]
[Your Signature, Without "Authorized Representative"]
  2. Prepare Form 1040V:
    • Obtain a Form 1040V for the year referenced in the presentment.
    • Sign in the lower right-hand corner, as you would a check.
    • Fill in the payment amount, adding extra dollars to prompt a refund check.
    • Make the form payable to: Department of Treasury.
    • Endorse the back of the 1040V:
      By: [Your Name], Authorized Representative
For Settlement, Closure, and Setoff of this Presentment
Payment/Exemption #: [Bond Number from Back of Social Security Card]
  3. Mail:
    • Send to the top official at the IRS. Recommended addresses:
      • IRS, Stop 4440, PO Box 9036, Ogden, UT 84201
      • For years other than 2007 or 2008: IRS, Fresno Campus, ASFR Unit Stop 81404, PO Box 24015, Fresno, CA 93779
      • For 2007 or 2008: IRS, ACS Support Stop 76202, PO Box 24017, Fresno, CA 93779
    • The Kansas City IRS office is reportedly effective for A4V acceptance.
If the A4V Is Not AcceptedIf the company or IRS does not credit your account after receiving the A4V documents:
  1. Resend with Form 28:
    • Send the original A4V documents back with a Form 28 (Affidavit of Individual Surety). This affidavit is considered unrebuttable under contract law.
  2. Demand Settlement for Past Payments:
    • To address payments made out of pocket (considered a second payment), send the following forms, referencing each document to prevent separation:
      • Form 1099-A: For each year you made out-of-pocket payments.
      • Form 1099-OID: List the company as the payer and the amount withheld from you.
      • Form SF-28: Affidavit of Individual Surety.
      • Form OP-90: Release of Lien on Real Property (if applicable).
      • Form OP-91: Release of Personal Property from Escrow (if applicable).
    • Timeframe: Demand settlement for payments made within the last three years (for non-promissory note contracts) or from the contract’s inception (for promissory note contracts).
  3. Escalate to IRS Criminal Investigation Division (CID):
    • If the entity still does not settle, file a Form 3949A (Information Referral) with the IRS CID.
    • Send the package to: Internal Revenue Service, Criminal Investigation Division, Box 192, Covington, KY 41012.
Important Notes
  • Avoid Dashes in Social Security Numbers: Never write your Social Security number without dashes on A4V statements.
  • Understanding the Premise: The A4V process assumes you are the surety, and entities are using your credit (via your Social Security number or Certificate of Live Birth) without compensating you. By using A4V, you authorize the CFO to access your DTC (Depository Trust Company) account to offset the debt with "asset" funds, rather than "liability" funds like checks or money orders.
  • Risk of Double Payment: Paying with public funds (e.g., checks, money orders) may lead to the CFO issuing a 1099-A for unclaimed credit, effectively causing you to pay twice.
  • CFO’s Role: The CFO is authorized to perform an ACH transfer from the private side of the DTC to access "real" money for settlement.

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