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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 3. Individual Income Tax Returns (Cont. 8)

3.11.3  Individual Income Tax Returns (Cont. 8)

3.11.3.51 
Form 1040A

3.11.3.51.3 
Form 1040A—Page 2

3.11.3.51.3.11  (01-01-2008)
Line 38—Withholding

  1. Take one of the following actions for editing Line 38:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ "
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    *IRP data is generally not updated until June.

    Note:

    "Form 1099" , "1099" , "W-2" , "Form W-2" or similar statement written in the Line 38 area or on an attached worksheet is not an acceptable source for withholding support. An acceptable alternative source for withholding support may be a worksheet or attachment if it contains the same information as provided on a Form 4852.

    Figure 3.11.3-149

    This image has been removed because it contains Official Use Only.
    Please click here for the text description of the image.

    This image has been removed because it contains Official Use Only.

  2. Edit CCC "8" on a refund return when there is only one form of supporting documentation attached that is one of the following and withholding is significant:

    • A substitute statement (e.g., a substitute Form W-2 or employer-provided earnings statement with year to date totals) or attachment or worksheet as explained at 3.11.3.51.3.11(1) Note.

    • Handwritten (See Figure 3.11.3–98.)

    • Other than a computer-printed Form W–2

    • Altered name, SSN, wages, or federal income tax withheld

    Exception:

    Do not edit CCC "8" when Form 1099–R, Form W–2G, or IRS income document is attached, or if the return is identified as a military or combat zone return. See the Military Return instructions in IRM 3.11.3.7.1.1.

  3. Remove from the batch and route to the Criminal Investigation Fraud Detection Center any returns meeting all of the following criteria:

    • paper filed return

    • refund claimed on return

    • Form 4852 attached with no other withholding documentation present.

  4. Remove from the batch any refund return for Criminal Investigation Fraud Detection Center refund scheme review when there are similarities between returns on Form(s) W–2 such as the following:

    • Typing or printing

    • Wage amounts

    • Withholding amounts

    • Employer

    Note:

    Refer to the information on refund schemes in IRM 3.11.3.7.1.8.

3.11.3.51.3.12  (01-01-2008)
Line 39—ES Tax Payment

  1. Delete from line 39—and edit to the correct line—any amount determined to be other than:

    • ES tax payments

    • An overpayment applied from the 2006 return

3.11.3.51.3.13  (01-01-2008)
Line 40a—Earned Income Credit (EIC)

  1. The taxpayer will claim EIC by:

    1. Entering an amount on line 40a.

    2. Writing "EIC" in the line 40a area.

    3. Attaching Schedule EIC with entries.

  2. Take one of the following actions when no money amount is present on line 40a, Schedule EIC is not attached, and the FS is other than "3" or "6" .

    If the taxpayer writes "EIC" in the area of line 40a and Then
    The amount on line 21 is less than $12,590 ($14,590 for FS 2), Edit "888" on line 40a.
    The amount on line 21 is $12,590 ($14,590 for FS 2) or more, but less than $37,783 ($39,783 for FS 2), Correspond for Schedule EIC using box 28, Form 3531 or box 6, Form 6001. Use the following verbiage: "In order for us to compute your Earned Income Credit, please complete the enclosed Schedule EIC."

    Note:

    Do not edit CCC "B" if "888" has been edited or "EIC" is noted.

  3. If an amount is present on line 40a and Schedule EIC is not attached, correspond when any of the following conditions are present:

    1. Line 40a is greater than $428.

    2. Line 21 is $12,590 ($14,590 for FS 2) or more, but less than $37,783 ($39,783 for FS 2).

    3. DSI "1" has been edited.

    Exception:

    Do not correspond when the FS is "3" or "6" or if line 21 of Form 1040A is more than $37,783 ($39,783 if FS 2) or if the amount can be determined to be non-earned income.

  4. Correspond when EIC is being claimed and the source of earned income is not indicated or attached and cannot be determined through research.* Examples of earned income include:

    • Form 1099R with Distribution Code 3 and/or Disability

    • Form W–2 or similar statement

    • Form 1099–MISC

    • "HSH" noted in the line 7 area

    • Written indications of self-employment income


    * IRP Data is generally not updated until June.

    Exception:

    Do not correspond when FS 3 or FS 6, or if line 21 of Form 1040A is more than $37,783 ($39,783 if FS 2) or if the amount can be determined to be non-earned income.

    Reminder:

    Examples of items that are not earned income include, but are not limited to, the following:
    • Interest and dividends
    • Non-disability pensions and annuities
    • Social Security and Railroad Retirement benefits (including disability benefits)
    • Alimony and child support
    • Welfare benefits
    • Worker's compensation benefits
    • Unemployment compensation (insurance)
    • Non-taxable foster care payments
    • Veterans benefits (including VA rehabilitation benefits)

  5. Refer the return to the Questionable Refund Detection Team (QRDT) when EIC is being claimed and the only attached Form W–2 is altered, handwritten, or a substitute or similar statement.

  6. Edit RPC "B" when there is no significant entry on line 40a and the taxpayer has written:

    1. "No" or "None" in the area of line 40a. (See Figure 3.11.3–150).

    2. A clear indication that s/he does not want or does not qualify for EIC.

      Note:

      A blank is not a "clear indication" . Do not edit RPC "B" solely because the tax form has zeros or dashes on all unused lines. The zeros or dashes may indicate that the lines are not being used, not that the taxpayer does not want or qualify for EIC. If, however, the ONLY zero is on line 40a, edit RPC "B" .

    3. "Amish" or "Mennonite" anywhere on the return.

    4. "Exempt Notary" , "Exempt Form 4029" , or "Exempt Form 4361" anywhere on the return.

    Exception:

    Do not edit RPC "B" when "EIC" is notated on or to the right of line 40a, "888" has been edited to line 40a, or if a Schedule EIC with entries is attached.

  7. "X" the amount on line 40a and edit RPC "B" when there is a clear indication that an exemption from SE tax was given on Forms 4029 or 4361. Delete the amount when Form 4029 or 4361 is attached or a notation of "Exempt/Notary," "Amish," or "Mennonite" is present.

    Figure 3.11.3-150
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.51.3.14  (01-01-2008)
Line 41—Additional Child Tax Credit (Form 8812)

  1. Correspond for a missing Form 8812 when there is an amount present on line 41 and three or more children are claimed on line 6c, Form 1040A.

    Note:

    Take no action if Form 8812 is not attached to support an entry on line 41 and less than 3 children are claimed on line 6c.

  2. If Form 8812 is present and line 41 is blank, then edit the amount from line 13, Form 8812 to line 41, Form 1040A.

  3. "X" line 41 if it can be determined the taxpayer used it as a subtotal line.

3.11.3.51.3.15  (01-01-2008)
Line 42—Total Payments

  1. Take one of the following actions when there is an amount on line 42 and lines 38 through 41 are blank.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Edit the amount to line 38.

    2. Edit RPC "G" .

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Compute and enter line 42 when it is blank, dash or zero and there are entries present leading to a total.

    Note:

    Do not adjust the amount or convert Form 1040A to a Form 1040 when Form 4868, Excess SST or Excess RRTA is written on line 42.

    Exception:

    Do not include "888" when it has been edited on line 40a.

3.11.3.51.3.16  (01-01-2008)
Line 44a—Refund

  1. Compute and enter line 44a when lines 43, 45 and 46 are all blank, line 42 is greater than line 37, and one of the following conditions is present:

    1. Line 37 contains an entry

    2. The taxpayer has computed or indicated no tax due on lines 28, 35, or 37

    3. It can be determined that line 37 would compute to zero.

  2. Edit Action Code "341" when the amount on line 44a is:

    1. Less than $1.00 and the taxpayer has submitted a written request for the refund

    2. One million dollars ($1,000,000) or more and within 21 days of the expiration of the 45 day interest free period.

    Note:

    Hand-carry refund returns of one million dollars ($1,000,000) or more to your work leader. The work leader will ensure all correspondence and/or research is addressed and carry the return as a "walk through" to Numbering, ISRP and ERS to assist in providing subject matter expert support for timeliness.

  3. Refer to IRM 3.11.3.7.1.8 for instructions on refund returns which meet the criteria of a possible "refund scheme" .

3.11.3.51.3.17  (01-01-2008)
Lines 44b, 44c, & 44d—Direct Deposit Information

  1. (Reserved).

3.11.3.51.3.18  (01-01-2008)
Line 45—ES Credit Elect

  1. When lines 43, 44a, and 45 are the same (See Figure 3.11.3–151) perfect them as follows:

    If ES payments (line 39) Then
    Are claimed, "X" the entry on line 44a.
    Are not claimed, "X" the entry on line 45.

    Note:

    An overpayment can be divided between lines 44a (refund) and 45 (ES credit elect).

  2. Edit Action Code "430" to send the return to Rejects in the following circumstances:

    • A statement is present on or near line 45 indicating the taxpayer wants the credit applied to their spouse's account.

    • The return is FS 3 or 6 and there is a statement or schedule present showing how estimated payments are to be allocated.

  3. Exclude the additional amount when line 45 includes an amount for any of the following:

    • Late filing penalty

    • Late payment penalty

    • Interest

    Note:

    Do not exclude estimated tax penalty.

    Figure 3.11.3-151
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.51.3.19  (01-01-2008)
Line 46—Amount You Owe (Balance Due)

  1. Compute and enter line 46 when it is blank if lines 43, 44a, and 45 are all blank and line 37 is greater than line 42. Include the amount on line 47 for ES tax penalty when computing line 46.

  2. Do not edit CCC "B" when line 46 has been computed to a significant amount.

3.11.3.51.3.20  (01-01-2008)
Line 47—Penalty for Underpayment of ES Tax (Form 2210)

  1. Form 2210 has been assigned Sequence Code "06" . However, Form 2210 is not transcribed. Delete and move this form out of sequence order after editing line 47.

  2. ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Form 2210 is attached with any of boxes in Part II, A - E marked.

      Note:

      If Form 2210F is attached see IRM 3.11.3.56 for Conversion instructions.

    2. There is any indication of the following on Form 2210 OR in the Line 47 area, Form 1040A OR in the occupation area of Form 1040A:
      Actual Withholding
      Annualized Income (AI)
      Exempt
      Waiver
      Not liable for ES penalty (Reasonable Cause for Underpayment)

      Note:

      If only Box A and/or Box B in Part II on Form 2210 is marked, verify the attached statement meets Reasonable Cause criteria as outlined in Exhibit 3.11.3-8. If statement does not meet Reasonable Cause criteria, do not edit CCC "P" . Instead, edit CCC "7" and correspond using Letter 854C.

  3. If line 47 is blank, edit to line 47 any significant amount from Line 17 (page 2 of Form 2210) or line 31 (page 3 of Form 2210).

  4. When CCC "P" is edited, compare the line 47 entry with the amount on either line 17 or line 31 on Form 2210. If the entry on line 47 is different from the amount on Form 2210 after allowing for rounding:

    1. "X" the line 47 entry.

    2. Edit the amount from Form 2210 to line 47.

3.11.3.51.3.21  (01-01-2008)
Third Party Designee

  1. (Reserved).

3.11.3.51.3.22  (01-01-2008)
Signature

  1. A signature is required below the jurat (perjury statement) on most returns. Apply the procedures found at See IRM 3.11.3.14.10.

  2. Refer to the decedent return instructions See IRM 3.11.3.10. when the taxpayer is deceased. Additional editing of the return is always required on a decedent's return.

3.11.3.51.3.22.1  (01-01-2008)
Preparer Data

  1. Preparer data is located below the taxpayer signature area.

3.11.3.51.3.22.2  (01-01-2008)
Preparer Code

  1. The Preparer Code is edited to the right of the EIN line in the lower right margin of Page 2, Form 1040A. Apply the procedures found at See IRM 3.11.3.14.12.

3.11.3.51.3.22.3  (01-01-2008)
Preparer TIN

  1. See IRM 3.11.3.14.12.2.

3.11.3.51.3.22.4  (01-01-2008)
Preparer Phone Number

  1. See IRM 3.11.3.14.12.3.

3.11.3.52  (01-01-2008)
Schedule 1—Interest and Dividend Income

  1. The instructions provided in this subsection of the manual are for editing Schedule 1. These instructions include:

    • General editing procedures

    • Gross interest

    • Excludable savings bond interest

    • Gross dividends

  2. The following lines on Schedule 1 are T–lines and T-COMPUTE lines:

    T-Lines T-COMPUTE lines

    • Line 2– edited to the left of line 2
    • Line 3
    • Line 6– edited to the left of line 6     		There are no T-COMPUTE lines for this schedule.

3.11.3.52.1  (01-01-2008)
General Information

  1. A Schedule B may be substituted for Schedule 1.

    Exception:

    If line 7a is marked Yes on Schedule B, convert Form 1040A to Form 1040.

  2. Only one Schedule 1 can be processed. Take the following actions when more than one Schedule 1 is attached to the return:

    1. Combine related T-Line amounts.

    2. "X" the Schedule(s) 1 not used.

  3. Edit T-Line amounts from attachments when "see attached" is written on Schedule 1.

3.11.3.52.2  (01-01-2008)
Lines 1 and 2—Gross Interest

  1. The taxpayer may subtract the following adjustments from interest income. Edit the gross interest amount to the left of line 2 by adding the adjustment amount to the line 2 amount when the taxpayer subtracts amounts identified as any of the following (See Figure 3.11.3–152.):

    • Nominee distribution

    • Accrued interest

    • Original issue discount (OID)

    • Purchased interest

    • Amortizable Bond Premium/"ABP Adjustment"

    Figure 3.11.3-152
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.52.3  (01-01-2008)
Line 3—Excludable Savings Bond Interest

  1. Correspond when line 3 has a significant entry and Form 8815 is not attached.

    Note:

    Do not correspond when it can be determined that the line 3 entry is misplaced.

3.11.3.52.4  (01-01-2008)
Part II—Gross Dividends

  1. Edit the gross dividend amount to the left of line 6 when the taxpayer indicates an adjustment for a nominee distribution . Compute the gross dividend amount to the left of 6 by adding the adjustment for nominee distribution to the line 6 amount.

3.11.3.53  (01-01-2008)
Schedule 2—Credit for Child and Dependent Care Expenses

  1. See IRM 3.11.3.25. to edit/process Schedule 2.

3.11.3.54  (01-01-2008)
Schedule 3—Credit for the Elderly or the Disabled

  1. See IRM 3.11.3.21. to edit/process Schedule 3.

3.11.3.55  (01-01-2008)
Form 1040EZ

  1. The instructions provided in this subsection of the manual are for editing Form 1040EZ.

  2. All lines on Form 1040EZ are transcribed except for line 5.

    Note:

    The "You" and "Spouse" boxes on line 5 are transcribed.

  3. There are also five T-COMPUTE lines on Form 1040EZ. These are:

    • Line 4—Adjusted gross income

    • Line 6—Taxable income

    • Line 9—Total payments

    • Line 11a—Refund amount

    • Line 12—Balance due amount

  4. All transcribed lines on Form 1040EZ require dollars and cents editing.

3.11.3.55.1  (01-01-2008)
Form 1040EZ, General Information

  1. Edit RPC "L" if there are no significant T-line entries present or edited from attachments on lines 1 through 12.

    Reminder:

    Editing RPC "L" does not eliminate the requirement for editing the DSI. Always edit the DSI, when applicable.

  2. Edit RPC "V" when the tax form is computer generated. Computer-generated forms are identified by a three alpha character software code in the bottom margin of page 1.(See Figure 3.11.3-78).

  3. Some special conditions on returns will require special editing procedures. Taxpayers are instructed to note certain conditions on the return which you must identify. Edit these returns using instructions in the "Special Situations and Returns" subsection. These special situations are:

    Special Situations IRM reference

    Combat Zone and other Military Operations
    Examination Case
    Fiduciary Relationships (Minor Child and POA)
    Frivolous Filer/ Non-Filer Returns
    Hardship
    Killed in Terrorist Action (KITA)
    National Disaster/ Emergency Relief Program
    Refund Schemes
    3.11.3.7.1.1
    3.11.3.7.1.2
    3.11.3.7.1.3
    3.11.3.7.1.4
    3.11.3.7.1.5
    3.11.3.7.1.6
    3.11.3.7.1.7
    3.11.3.7.1.8

  4. Some types of returns will require special editing procedures. Edit the returns using the instructions in the "Special Situations and Returns" subsection. These special returns are:

    Special Returns IRM reference

    Amended
    Blank
    Incomplete Return
    Blocked or Deferred Income
    Correspondence Imaging Return (CIS)
    Combined Tax Liabilities
    Community Property
    Injured Spouse
    Innocent Spouse
    International
    Joint Committee
    Misblocked
    Misfiled
    Reinput
    Secured by Collections
    Short Period
    Substitute For Return
    52–53 Week
    3.11.3.7.2.1
    3.11.3.7.2.2
    3.11.3.7.2.3
    3.11.3.7.2.4
    3.11.3.7.2.5
    3.11.3.7.2.6
    3.11.3.7.2.7
    3.11.3.7.2.8
    3.11.3.7.2.9
    3.11.3.7.2.10
    3.11.3.7.2.11
    3.11.3.7.2.12
    3.11.3.7.2.13
    3.11.3.7.2.14
    3.11.3.7.2.15
    3.11.3.7.2.16
    3.11.3.7.2.17
    3.11.3.7.2.18

  5. Refer to the decedent return instructions in tridoc 3.11.3.10 of this IRM when any of the following are present:

    • The word "Deceased" is written on the return.

    • A date of death is found on the return.

    • "DECD" is included on the preprinted label.

    • "Surviving spouse" is written in the caption or the signature area.

    • There is any other indication that the taxpayer has died.

  6. Other notations and conditions may also require special editing. These are included in the following line-by-line instructions.

3.11.3.55.1.1  (01-01-2008)
Conditions Requiring Conversion to Form 1040

  1. Certain conditions found on a Form 1040EZ return may require that it be converted to Form 1040. IRM 3.11.3.56 provides instructions for converting Form 1040EZ to Form 1040.

  2. Specific conditions requiring conversion are identified in the text instructions concerning the particular line item involved.

  3. See the table below for conditions which require Form 1040EZ to be converted to Form 1040:

    Conditions Requiring Conversion of Form 1040EZ to Form 1040

    • Additional Standard Deduction for Age/Blindness

    • Any line is used that is not a printed line (write-ins)

    • Community Property is indicated by the taxpayer

    • Dependent(s) claimed

    • Filing Status Code is other than 1 (single) or 2 (married filing joint)

    • Gambling losses that are greater than the taxpayer's correct standard deduction amount.

    • Interest income of greater than ≡ ≡ ≡ , or a negative interest amount

    • Prizes or awards over ≡ ≡ ≡ ≡

    • Self Employment - clear indication (e.g., of self-employment income of $434 or more. (e.g., Form 1099 MISC attached with an amount present in box 7.)

      Reminder:

      Editing of RPC "N" may be required after converting to Form 1040.)

    • Social Security and Equivalent Railroad Retirement Benefits

    • Tax period less than 12 months

    • Tax period is other than calendar year (month ending in "12" )

    • Tax Period is prior to 8212

      Note:

      The preceding list is not all inclusive. Conversion should take place when a form or schedule is attached to Form 1040EZ that is applicable to a Form 1040. See your work leader for other miscellaneous situations.

    Reminder:

    The presence of Form 8888 is NOT criteria for conversion of Form 1040EZ to Form 1040. This is a valid attachment to Form 1040EZ.

3.11.3.55.2  (01-01-2008)
Line 1—Wages

  1. An entry on line 1 does not require Form W–2 for support.

    Note:

    Support for a withholding amount on line 7 of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will be required.

  2. If line 1 is blank, dash, or zero, enter the total of wage amounts from all attached Forms W–2.

  3. "X" a wage amount found elsewhere on the return and enter or include the amount on line 1.

  4. "X" an entry on line 1 when there is an indication that pension is included. Indications include the following:

    1. The word "Pension" is written in the line 1 area.

    2. Form 1099R is found while editing withholding, advanced EIC, or excess Social Security tax.

    Exception:

    Do not delete the amount on line 1 when "Disability pension" (code 3 in box 7, Form 1099R) is noted.

  5. Adjust line 1 to exclude any of the following types of nontaxable income:

    • Accident and health insurance proceeds

    • Casualty insurance and other reimbursements

    • Child support payments

    • Public aid

    • Supplemental Security Income (SSI)/SSI Disability

    • Tax-sheltered annuities

    • Temporary Assistance for Needy Families (TANF)

    • Veterans' Administration (VA) benefits

    • Welfare payments

    • Workers' compensation

  6. Edit RPC "B" when the taxpayer indicates that line 1 includes any of the following:

    1. Taxable amounts from scholarships ("SCH" ), fellowships, grants, etc.

    2. "PRI" written on line 1