21.2.5  Miscellaneous Forms and Processing

Manual Transmittal

September 12, 2014

Purpose

(1) This transmits revised IRM 21.2.5, Systems and Research Programs, Miscellaneous Forms and Processing.

Material Changes

(1) Format changes throughout

(2) 21.2.5 Miscellaneous format changes throughout

(3) 21.2.5.1.1.4 CP 175 changed to CP 875 and IRM reference 21.7.2.4.5.2

(4) 21.2.5..1.1.5 changed reference to IRM 21.7.2.6.5.6

(5) 21.2.5.4.1.1.10 (2) changed IRM name and number 21.7 Business Tax Returns and Non-Master File Accounts (NMF) Adjustments

(6) 21.2.5.4.9 changed IRM name to Religious Waivers

(7) 21.2.5.4.11.1 added reference to Document 12900

(8) 21.2.5.4.11.1 2nd box If/Then chart added name to IRM 3.11.212.

(9) 21.2.5.4.11.1 3rd box If/Then chart added name of IRM 3.11.212.1.3

(10) 21.2.5.4.11.2(1) changed Center at Martinsburg IRM starts at 2.7.9

Effect on Other Documents

IRM 21.2.5 dated September 11, 2012 (effective October 1, 2012) is superseded. This IRM also incorporates IRM Procedural Update 13U0364, issued February 19, 2013.

Audience

All functions processing miscellaneous forms

Effective Date

(10-01-2014)

Ivy S. McChesney
Director, Accounts Management
Wage and Investment Division

21.2.5.1  (11-18-2003)
Miscellaneous Forms and Processing Overview

  1. This section provides guidelines for processing loose forms or special taxpayer correspondence worked in various functions in the campuses.

21.2.5.2  (10-01-2002)
What are Miscellaneous Forms and Processing?

  1. Miscellaneous forms include:

    • Special forms requiring exception handling and perpetual maintenance.

    • Loose forms or schedules that should have been attached to a tax return when it was submitted, but are detached due to incorrect processing or being sent in separately by the taxpayer.

    • Computer Paragraph (CP) notices are generated by the IRS to notify employees or taxpayers of a special circumstance on an account requiring action.

21.2.5.3  (10-01-2002)
Miscellaneous Forms Research

  1. Use all tools available including, but not limited to, Integrated Data Retrieval System (IDRS) or Master File research. Research the Internal Revenue Code and Regulations as necessary. Use all applicable IRMs and procedures including IRM 11.3 Disclosure of Official Information, Disclosure of Official Information. Specific references are listed as applicable.

21.2.5.4  (10-01-2002)
Miscellaneous Forms Procedures

  1. Procedures are provided for:

    • Special forms requiring exception handling

    • Special processing of exception accounts requiring "technical" assistance

    • Processing requests for disclosure of taxpayer information

21.2.5.4.1  (10-01-2011)
Loose Forms or Computer Paragraph Notices

  1. Use the following procedures to process various loose forms or computer paragraph notices.

21.2.5.4.1.1  (10-01-2011)
Loose Wage Information Statements

  1. If you receive a loose Form W-2, Wage and Tax Statement, Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA, Insurance Contracts, etc., Form 4852, Substitute for Form W-2 , Wage and Tax Statement, or Form 1099-R , Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA, Insurance Contracts, etc., Employer's Undelivered Withholding Statements, or Form W-4, Employee's Withholding Allowance Certificate, review the forms, determine the reason IRS has received them, and take the necessary action. Necessary action for Individual Master File (IMF) forms are given below. Business Master File (BMF) forms (having to do with employment tax returns) should be sent to Receipt and Control per IRM 3.11.13.12, Entity Perfection-General.

21.2.5.4.1.1.1  (10-01-2014)
Loose IMF Form W–2 / Form 1099-R — Return Filed/Income Reported

  1. Take the following actions when IMF loose Form W-2 and Form 1099-R are received, a tax return is filed, and income reported:

    If ... Then ...
    The loose form is the copy to be filed with Social Security Administration (SSA)
    1. Send tax year (TY) 11 Form W-2 received prior to September 2011 to SSA.

    2. Route all others to CAWR (Combined Annual Wage Reporting) function (forward the taxpayer’s documents using Form 3210 through regular mail procedures).

    3. Dispose of all other forms received without correspondence as outlined in Document 12990, Records and Information Records Control Schedules

    Loose form is Copy B (to be filed with Federal return)
    1. Associate with paper filed return.

      Note:

      If return was filed electronically and is a 2007 tax year or subsequent, destroy as outlined in Document 12990 Records and Information Records Control SchedulesForm W-2 .

    2. Research for controlling Document Locator Number (DLN) using Command Code IMFOL. If return found, attach loose form to return. (If secondary filer, research INOLE for primary taxpayer's taxpayer identification number (TIN); then proceed with research for controlling DLN).

    3. Hold form for disposition in accordance with Document 12990, Records and Information Records Control Schedules.

    Other copies Hold for disposition in accordance with Document 12990, Records and Information Records Control Schedules.

    Note:

    If loose Form W-2s are received and the return is filed but you cannot determine if the income was reported because the return has not posted to Master File yet, input TC 930 Push Code. See IRM 21.5.1.4.4.1 General Adjustments, TC 930 Push Codes, for TC 930 input procedures.

21.2.5.4.1.1.2  (10-01-2009)
Loose IMF Form W–2 / Form 1099-R - No Return Filed/Income Not Reported

  1. Take the following actions when IMF loose Form W-2 and Form 1099-R are received, no return has been filed, and the income has not been reported.

    If And ... Then
    Loose Copy A received income is not reported or no return is filed
    1. Send TY 11 Form W-2 received prior to September 2013 to SSA.

    2. Send tax year form prior to 1999 to SSA.

    3. Route all other forms to Reconciliation function.

    Loose Copy C or 1 received  
    1. Return to the payer.

    2. Advise payer to furnish Copy 1 to the appropriate state or local tax authorities if they have not done so.

    Loose Copy B, C, or 2 received there is no record of a return being filed Return copies to payee with Letter 282C (Return Not Received: Copy Requested/Received) or Letter 301C (Individual Return Cannot be Prepared with Information Furnished W-2; 4852 Returned to TP: Form 1040), as appropriate, using all applicable paragraphs and enclosing applicable tax forms.
    Loose Copy B, C, or 2 received there is no indication that income was reported on a filed return
    1. Return copies to payee.

    2. Advise taxpayer to file an amended return including Form W-2 / Form 1099-R income or provide a signed copy of return if one was filed.

21.2.5.4.1.1.3  (10-01-2009)
Undelivered Withholding Statements

  1. If the taxpayer’s employer forwards the "federal copy" or "employee copy" of withholding statements to IRS because he/she is unable to deliver them to the employee, return them to the employer to be held in accordance with 26 CFR 31.6051-1(a)(3).

21.2.5.4.1.1.4  (10-01-2007)
CP 175 and CP 875

  1. See IRM 21.7.2.4.18.6.4.7 Employment and railroad Tax Returns, CP 175 / CP 875 - Unexplained Adjustment to Withholding, Tips, or FICA.

21.2.5.4.1.1.5  (10-01-2007)
CP 177

  1. See IRM 21.7.2.4.24.5.6, CP 177 - Unexplained Adjustment on Form CT-1.

21.2.5.4.1.1.6  (10-01-2009)
CP 194

  1. CP 194, Data for Computation of Possible FTD Penalty on Form 941, Form 720, Form 940, Form 943, Form 945, informs SC Accounting that an account does not comply with Federal Tax Deposit (FTD) requirements or a FTD transaction was dishonored after return posted.

  2. Process cases using procedures outlined in IRM 20.1.4, Failure to Deposit Penalty.

21.2.5.4.1.1.7  (10-01-2002)
Non-Negotiable Remittances (Form 1040X)

  1. See IRM 21.5.3.3.4.16.14, Non-Negotiable Remittances.

21.2.5.4.1.1.8  (10-01-2002)
Claims Processing (Form 1040X)

  1. See IRM 21.5.3.4, General Claims Procedures.

21.2.5.4.1.1.9  (10-01-2002)
Certification Forms Received From Withholding Agents

  1. Re-file duplicate copies of certification forms received from withholding agents.

21.2.5.4.1.1.10  (10-01-2013)
Foreign Information Documents Received as Attachments to Returns

  1. Detach Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, or other foreign information documents received as attachments or schedules with IMF, BMF or other returns, and send to Ogden Campus (OC) for processing. Also:

    If ... Then ...
    Form 1042 or other foreign document is received with Form SS-4, Application for Employer Identification Number, attached for Employer Identification Number (EIN) Forward to OC.

    Note:

    If Form SS-4 only is received, receiving campus assigns EIN.

    It is necessary to keep Form 1042 or Form 1042-S data attached for processing, audit, etc. Photocopy documents and send original returns to OC.
  2. For more information, see IRM 21.8.1, IMF International Adjustments, IRM 21.8.2, BMF International Adjustments and IRM 21.7.12, Business Tax Returns and Non-Master File Accounts (NMF) Adjustments.

21.2.5.4.1.1.11  (10-01-2002)
Passive Foreign Investment Company (PFIC) Elections

  1. U.S. shareholders of a PFIC can elect to defer tax on undistributed earnings and capital gains. Process these requests as follows:

    If ... Then ...
    Election is received at other than Philadelphia Campus (PC) Forward to PC for processing.
    Elections received from PFIC for a Qualified Electing fund which do not indicate an EIN Forward to BMF Entity for EIN assignment.
    Elections received from PFIC for a Qualified Electing fund which indicate an EIN Forward for processing according to IRM 3.21.25, Miscellaneous Tax Returns.

21.2.5.4.2  (11-26-2002)
Corporate Dissolution — Liquidation

  1. Form 966, Corporate Dissolution or Liquidation, must be filed within 30 calendar days after adoption by corporation of a resolution or plan to dissolve or liquidate any of its capital stock.

21.2.5.4.2.1  (10-01-2009)
Form 966 Procedures

  1. Code top of each Form 966 received with name control, and tax period. Tax period is tax year of final return, indicated in Item 7a of form. Then process as follows:

    If ... Then ...
    Item 7b indicates that final return was filed with a parent corporation Code information from parent company on the document.
    Form 966 indicates a return was never filed A tax period cannot be coded on the return.
  2. After coding, send Form 966 to Returns Files function.

    Note:

    Examination function requests these documents from Files if needed for classification purposes.

  3. CP 198, Push Code Condition, caused by TC 930s being input prior to above processing changes, create no match situations. When this happens, these are returned to the function from Files area. Process these items as indicated above.

21.2.5.4.3  (10-01-2009)
IRC 6905

  1. IRC 6905 authorizes Field Directors to grant executors releases from personal liability for decedents' income and gift taxes. Form 5495, Request for Discharge from Personal Liability Under Internal Revenue Code Section 2204 or 6905, is generally used to request discharge.

21.2.5.4.3.1  (10-01-2014)
Form 5495 Procedures

  1. Process Form 5495as follows:

    If ... Then ...
    Form 5495 is for Form 706 Estate Tax Forward request to Centralized Estate and Gift at Cincinnati Campus.
    Form 5495 is for Form 709 Gift Tax Forward request to Centralized Estate and Gift at Cincinnati Campus.
    Form 5495 is for Form 1040 and Form 1041 Income Tax Forward to local Examination Classification
  2. Examination will Prepare Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, to inform taxpayer request is being processed.

21.2.5.4.4  (10-01-2002)
Postal Service Mail Loss/Rifling Report — PS Form 1510

  1. PS Form 1510, Mail Loss/Rifling Report (formerly U.S. Postal Service Mail Non-Delivery Report), is prepared by the Postal Service when an inquiry is received about delivery of a return or return information.

21.2.5.4.4.1  (10-01-2002)
PS Form 1510 Procedures

  1. IRC 6103 prohibits IRS from disclosing a return or return information without appropriate taxpayer authorization. Take the following actions:

    1. Research to verify receipt of item in question.

    2. Prepare a letter in duplicate and respond directly to taxpayer informing him/her of your research findings.

    3. Complete PS Form 1510 and prepare Letter 135C, Power of Attorney Needed to Furnish Information, to send to taxpayer. Advise taxpayer we are prohibited from providing information about their return to third parties without written authorization; therefore, we are returning PS Form 1510 to them.

21.2.5.4.5  (10-01-2002)
Application for Change in Accounting Method — Form 3115

  1. See IRM 21.7.4.4.15 Income Taxes / Information Returns, Form 3115, Application for Change in Accounting Method.

21.2.5.4.6  (10-01-2009)
Exempt Organization or Employee Plan Photocopy/Public Inspection Requests

  1. See IRM 21.7.7.3.7 Exempt Organization and tax Exempt Bonds, Public Inspection.

21.2.5.4.7  (10-01-2002)
Technical Unit

  1. See IRM 21.7.1.4.10 BMF/NMF Miscellaneous Information, Technical Unit.

21.2.5.4.8  (11-24-2004)
SSA Correspondence

  1. See IRM 4.19.6.2 Liability Determination, SSA Correspondence.

21.2.5.4.9  (11-24-2009)
Minister Waivers - Form 4361

  1. See IRM 4.19.6.3 Liability Determination, Religious Waivers

21.2.5.4.10  (11-24-2009)
Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits/Form 4029

  1. See IRM 4.19.6.4 Liability Determination, Application for Exemption from Social Security and Medicare Taxes and Waiver of Benefits/ Form 4029.

21.2.5.4.11  (10-01-2003)
Extensions of Time to File and Pay Individual Tax Returns

  1. Extensions of Time to File, "Dummy" Extension Applications, and Reconsideration of a Denied Request for Extension of Time to File are covered in IRM 3.11.212 Application for Extension of Time to File, Applications for Extension of Time to File.

21.2.5.4.11.1  (10-01-2011)
Letter Requests for Extension of Time to Pay or File and Pay

  1. Process requests for extension of time to pay or file and pay as follows:

    If ... Then ...
    Taxpayer requests extension of time to pay tax due because he/she cannot pay, refuses to pay, will pay later, or wishes to pay in installments Forward letter directly to campus Collection Operations for appropriate action.
    Taxpayer is requesting an extension of time to file and pay
    1. If the letter request was submitted before the due date of the return and shows the full amount properly estimated as tax, then process the letter requests for extension of time to file. See IRM 3.11.212.1.7 Determination of Timely Filing - General to determine if the request was timely.

    2. Send a letter to the taxpayer with the "dummy" application indicating that the extension of time to file is approved but that the extension of time to pay is denied. Use the following statement as a guide:
      "We have approved your request for an automatic six month extension of time to file your income tax return. However, no extension of time to pay your tax is allowed. Although an extension of time to file your return does not require a payment being made, the extension of time to file does not extend the time for payment of tax. You may file your return and pay your tax any time before the extension of time to file expires. However, you will owe interest on any tax not paid by the regular due date of your return. The interest runs until you pay the tax." You may also be subject to a late payment penalty. The penalty is usually 1/1 of 1% of any tax not paid by the regular due date. It is charged for each month or part of a month the tax is unpaid. The maximum penalty is 25%. The late payment penalty will not be charged if you can show reasonable cause for not paying on time. Attach a statement to your return fully explaining the reason. You are considered to have reasonable cause for the period covered by this automatic extension if at least 90% of your actual tax liability is paid before the regular due date of your return through withholding, estimated tax, or with your request for an extension of time to file."

    3. If the letter was not timely received or the request cannot be processed, then follow the procedures in IRM 3.11.212, as appropriate.

    Taxpayer is requesting an additional extension of time to file beyond six months due to taxpayer living and working abroad or serving in the military abroad See IRM 3.11.212.1.3 for approval criteria and processing instructions. No notification is sent to taxpayer unless request is denied.

21.2.5.4.11.2  (10-01-2009)
Extensions of Time and Waivers for Information Returns

  1. IRM 2.7.9 through IRM 2.7.7.14.6 describes Enterprise Computing Center at Martinsburg (ECC-MTB) procedures for processing requests for:

    • Extension of time to file paper or magnetic media for Form 1098, Form 1099 series, Form 1042-S, Form 5498, Form 8027, Form W-2G, Form W-2, and Form W-3.

    • Waiver from magnetic media reporting requirements for Extension of time to file paper or magnetic media for Form 1098 , Form 1099 series, Form 1042-S, Form 5498, Form 8027, Form W-2G, Form W-2, and Form W-3.

  2. Requests are made on Form 8809, Application for Extension of Time to File Information Returns, or in a letter.

  3. Forward requests received in another IRS office within 3 work days, to the following address:

    Internal Revenue Service
    Enterprise Computing Center at Martinsburg
    Information Reporting Program
    Attention: Extension of Time Coordinator
    240 Murall Drive
    Kearneysville, WV 25430

21.2.5.4.11.3  (10-01-2002)
Form 5713 — International Boycott Report

  1. The time to file a Form 5713, International Boycott Report, is only extended (automatically) if the taxpayer has received an extension of time to file his/her income tax return. Otherwise, no extension is allowed.

21.2.5.4.11.4  (10-01-2002)
Extensions of Time to File Involving Research Credit Suspension Periods

  1. Extensions of time to file will be granted for taxpayers affected by research credit suspension periods. Taxpayers requesting an extension should note at the top of the request "Research Credit Suspension Period" . On Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, they should also include the amount of the suspended research credit on the line for total payments.

  2. Since the taxpayer cannot take the suspended credit on an original return, the possibility exists of failure to file, failure to pay, and/or estimated tax penalties generating when the original return posts. See IRM 21.7.4.4.8.3.4, Form 6765, Credit for Increasing Research Activities, Form 6765, for adjustment procedures.

21.2.5.4.12  (10-01-2009)
Deferment of Payment of Taxes

  1. For deferment of payment for military personnel, refer to procedures in IRM 5.1.7.12, Military Deferments and IRM 5.19.10.7.2.3, Combat Zone Accounts.

21.2.5.4.12.1  (10-01-2008)
Processing Requests for Deferment of Federal Taxes

  1. Forward requests for deferment of payment of federal taxes to appropriate Field Office, Attention Chief, Insolvency Office (formerly Special Procedures function).

  2. Process Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship, as follows:

    If ... Then ...
    An unprocessed Form 1127 is received in field office Forward to appropriate Technical Services Office, Attention: Group Manager, Advisory (formerly Special Procedures function).
    A copy of an approved Form 1127 is received in field office Process it in field office to delay enforced collection action.
    Form 1127 refers to a MF tax form Immediately input a TC 470 as instructed on Form 4844, Request for Terminal Action.
    Form 1127 refers to a non-MF tax form Process as outlined in IRM 3.21.25 , Miscellaneous Tax Returns.

More Internal Revenue Manual