- 3.11.3.57 Prior Year Returns
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Use the following chart to determine the correct action for perfecting line 19.
If the tax year is Then 1986 through 1979, Edit the amount of taxable unemployment compensation to line 19. 1978 and prior, Take no action.
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Use the following chart to determine the correct action for perfecting lines 20a and 20b.
If the tax year is Then 1983 and prior, "X" the SSB amount when present. Do not edit an SSB amount to lines 20a or 20b.
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Edit RPC "N" —for tax year 1989 and prior—when both of the following conditions are present:
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Self-employment income of $400 or more is present on line 21, and
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Schedule SE is not attached.
Note:
Do NOT edit RPC "N" when the taxpayer reported self-employment income as "wages" on line 7 and included the amount on a Form 4137.
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Use the following chart to determine the correct action to take on returns which claim USDA/Farmer Settlement. The following notations may be present:
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USDA Settlement/Income
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Black Farm Settlement
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African American Farmer Settlement
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Debt Forgiveness
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Letter referencing the Pigford vs Glickman Civil Action Suit
If And Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" line 21, Form 1040. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ No Schedule F is attached, Edit RPC "S" . Note:
Do not edit S if taxpayer reports self-employment income that is subject to self-employment tax.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "USDA" is written to the left of line 21, Edit RPC "S" Note:
Do not edit RPC "S" if taxpayer reports self-employment income that is subject to self-employment tax.
No amount is present on 1040 line 21, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Take no action. Note:
USDA Debt forgiveness may also be reported on line 10.
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Follow the instructions below for editing the taxpayer's adjustments to income.
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For TY 2006 only, edit Special Processing Code "B" when taxpayer notates that only Educator Expenses are present on line 23.
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For TY 2006 only, edit Special Processing Code "E" when taxpayer notates that both Educator Expenses and Archer MSA Deduction are present on line 23, Form 1040.
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"X" the Educator Expenses deduction for TY 2001 and prior.
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For TY 2006, edit Special Processing Code "E" when taxpayer notates that both Educator Expenses and Archer MSA Deduction are present on line 23, Form 1040.
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"X" any amount claimed for the Medical Savings Account Deduction for tax year 1996 and prior.
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Use the following chart to determine the action to take when the taxpayer takes a deduction for employee business expenses:
If the tax year is Then 2006 through 1991, Follow current year procedures. 1990 and prior, Edit the amount of employee business expense claimed to line 24. Note:
Do not edit RPC "P" when Form 2106/EZ is attached to a prior year return.
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"X" the Health Savings Account deduction for TY 2003 and prior.
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Delete the SE tax deduction amount for tax year 1989 and prior.
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Use the chart below to determine the action to take when the taxpayer does not provide the TIN of the alimony recipient:
If the tax year is Then 2006 through 1985, Follow current year procedures for a missing recipient's TIN. 1984 and prior, Edit a "9" for the recipient's TIN when missing, regardless of the amount claimed.
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"X" the amount on line 32 for TY06, when it is other than $4,000 or $5,000 ($8,000, $9,000 or $10,000 for FS 2) and one of the indicators in (4) below -- with an equal deferred compensation amount - appears on Form W-2. (See Figure 3.11.3-89)
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"X" the amount on line 32 for TY05 when it is other than $4,000 or $4,500 ($8,000, $8,500 or $9,000 for FS 2) and one of the indicators in (4) below -- with an equal deferred compensation amount - appears on Form W-2. (See Figure 3.11.3-89).
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"X" the amount on line 32 for TY04 - TY02 when it is other than $3,000 or $3,500 ($6,000, $6,500 or $7,000 for FS 2) and one of the indicators in (4) below - with an equal deferred compensation amount - appears on Form W-2. (See Figure 3.11.3-89).
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"X" the amount on line 32, for TY01 and prior, when it is other than $2,000 ($4,000 for FS 2) and one of the following indicators—with an equal deferred compensation amount—appears on Form W–2. (See Figure 3.11.3–89.)
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"D" or Section 401(k)
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"E" or Section 403(b)
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"F" or Section 408(k)(6)
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"G" or Section 457(b)
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"Q" or "Housing/Subsistence" or "Combat Pay"
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"S" or "SIMPLE" plan
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"T" or employer-paid "qualified adoption expenses"
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Section 125, Cafeteria Plan (CAF)
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Section 414(h), Mandatory Salary Deferral ("PERS" Public Employees Retirement System)
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Thrift Savings Plan or "TSP"
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Add the primary and secondary taxpayer's IRA deductions and enter the total on line 25 for tax year 1996 and prior for which there are separate amounts.
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"X" the Student Loan Interest for tax year 1997 and prior.
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For TY 2006, edit Special Processing Code "C" when taxpayer has notated that only Tuition and Fees is present on line 35, Form 1040..
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For TY 2006, edit Special Processing Code "F" when taxpayer has notated that BOTH Tuition and Fees and Domestic Production Activities are present on line 35.
Note:
Form 8917 is not required for supporting documentation for TY06 and prior.
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"X" a claim for the Tuition and Fees deduction for TY01 and prior.
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For TY 2006, edit Special Processing Code "F" when taxpayer has notated that BOTH Domestic Production Activities and Tuition and Fees are present on line 35, Form 1040.
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"X" a claim for the Domestic Production Activities Deduction for TY04 and prior.
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Form 8903 must be attached if there is an amount present on line 35 and significant entries are present on lines 12, 17 and/or 18. Correspond if missing.
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Use the chart below to determine the correct action when the taxpayer takes a deduction for a married couple.
If the tax year is Then 2006 through 1987 or 1981 and prior, Delete the deduction amount. 1986 through 1982, "X" the deduction amount where found and edit it to the dotted portion of line 36.
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Use the following chart to determine the correct action for perfecting the taxpayer's entry for disability income exclusion.
If the tax year is Then 2006 through 1987, Follow current year procedures. 1986 through 1984, • Edit the amount of Disability Income to line 48.
• Correspond for Schedule R when missing.1983 and prior and
Form 2440 is attached,• Edit the amount claimed to the dotted portion of line 36 of Form 1040.
• "X" Form 2440.
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Use the chart below to determine the correct action when the taxpayer enters any of the following deductions in the adjustments to income area of the return.
If the tax year is And Then 2006 through 1991 the taxpayer writes "QPA" edit the amount to line 24 of Form 1040. 2001 and prior, "Educator Expenses," "X" the amount. 1993 and prior , the taxpayer writes "PPR" or "Clean Fuel PTY" , "X" the amount. 1990 and earlier, the taxpayer writes "QPA" or "501(c)(18)" , "X" the amount. 1993 through 1987 the taxpayer deducts moving expenses, Edit the amount to line 28 of Schedule A. 1986 and prior, the taxpayer deducts moving expenses, Edit the amount to the dotted portion of line 36. -
For TY06 edit an amount claimed for Jury Duty from line 34 to the dotted portion of line 36.
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When the box(es) on line 44 is marked take the following actions:
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Add the amounts for "Tax" and "Additional Taxes" from Form 4972 and/or Form 8814.
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Edit the total to line 44.
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Correspond for the missing form when either of the following is present:
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The Form 8615 box is marked, or
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An amount for Form 8814 is present.
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When the Form 4972 box is marked and Form 4972 is not attached to the return, take one of the following actions:
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For tax year 2006 through 1994, correspond for the missing Form 4972.
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For tax year 1993 and prior, do not correspond for Form 4972.
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When Form 4972 is attached:
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For tax year 2006 through 1994,"X" Part I.
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For tax year 1993 and prior, "X" Form 4972.
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If an amount is claimed, Form 2441, or a statement must be attached.
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Prepare a dummy Form 2441, if a statement is attached.
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Correspond when a Form 2441 cannot be dummied.
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"X" line 49 if any of the following apply:
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Tax period is before 9812.
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Line 39b on Form 1040 is marked.
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FS is 3 or 6.
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FS is 2 and the AGI is greater than $100,000.
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FS is 1, 4, 5 or 7 and the AGI is greater than $50,000, or
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Taxpayer claimed both the Hope Credit and the Lifetime Learning Credit for the same person on Form 8863.
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If an amount is claimed on line 49, Form 8863 must be attached. Correspond if missing.
Exception:
Do not correspond when line 43 of Form 1040 is (or can be determined to be) zero or a negative amount.
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"X" the Child Tax Credit amount for tax year 1997 and prior.
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"X" the Retirement Savings Contribution Credit deduction for TY01 and prior.
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"X" credit amounts claimed from Forms 8396, 8859 for TY01 and prior.
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"X" credit amounts claimed from Form 8839 for tax year 1996 and prior.
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For returns for tax year 1987 through 1984 compute and edit all business and personal credit amounts to line 56, Form 1040.
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"X" any amount claimed for Rate Reduction Credit.
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Delete an amount for "Recapture Taxes" where found and edit it to the dotted portion of line 63.
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Edit amounts from Form 4970 to the dotted portion of line 63.
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Correspond when an amount claimed on line 64 is ≡ ≡ ≡ ≡ ≡ or more and there is no withholding support present, and withholding support cannot be determined through internal research.
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Use the following chart to determine the correct action to take on returns which claim USDA/Farmer Settlement:
If And Then There is $12,500 reported on Form 1040 Line 64 with "1099" notated by the taxpayer, Form 1099C is attached to the return stating:
• USDA Income
• Black Farm Settlement
• African American Farmer Settlement
• Debt forgiveness
• Letter referencing the Pigford vs Glickman Civil Action suit,"X" the amount on Line 64 and add it to Line 65– estimated tax.
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For returns filed for tax year 2006 through 1991, Schedule EIC must be attached when an amount is present on line 66a and the correspondence tolerance is met. Use the following chart to determine when correspondence is required for the missing Schedule EIC.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note:
Do not correspond for a missing Schedule EIC when the tax year is 1990 and prior, regardless of the amount claimed.
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Accept a line 7 notation of "HSH" as a source of earned income for tax years 2006 through 1995.
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For tax year 1993 and prior, when "EIC" is notated and no EIC amount is present, take no action.
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Correspond for source of earned income documentation if the amount claimed on line 66a is based solely on wages that are not supported by at least one document.
Exception:
Do not correspond if able to determine source of earned income through internal research.
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Use the chart and worksheet in Figure 3.11.3–158 to verify excess SST amount claimed on line 67. For tax year 1993 through 1991, Social Security Tax and Medicare Tax amounts must both be verified. For tax years before and after that period, only the Social Security Tax amount must be verified. Use the following chart to determine the correct use of the worksheet in Figure 3.11.3–158.
If the tax year is Then 2006 through 1994 and 1990 and prior, • Verify the SST.
• Use the appropriate amount from column A of the tax chart on line 2 of the worksheet to determine the excess amount.1993 through 1991, • Verify both the SST and Medicare.
• Use the appropriate amounts from the tax chart on lines 2 and 5 of the worksheet to determine the excess amount. -
"X" an amount claimed for excess SST if there is no supporting documentation and the information cannot be found through internal research.
Figure 3.11.3-158This image is too large to be displayed in the current screen. Please click the link to view the image.