WASHINGTON — The Internal Revenue Service will process Build America Bond and other direct-pay bond payments manually for a two to three weeks to factor in 8.7% sequestration cuts, but is working to ensure this does not delay the payment process.

"All of the returns that are now coming in, we think that because we have set up this manual system, for the most part we will stay on that time table," said Cliff Gannett, acting director of government entities at the IRS since April 2011. "Our hope and expectation is that it will not delay anything and we will get these payments out timely."

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