Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 3. Submission Processing

Chapter 10. Campus Mail and Work Control

Section 72. Receiving, Extracting, and Sorting (Cont. 1)

3.10.72  Receiving, Extracting, and Sorting (Cont. 1)

3.10.72.5 
Extraction of Envelope Contents

3.10.72.5.11  (01-01-2010)
Federal Tax Deposit (FTD) Mail Extraction

  1. The processing of FTD transmittal blocks is consolidated into four Submission Processing sites shown below. The Campus FLC are the two digits listed above the bank's name on the Advice-of-Credit form. If FTDs for some reason are received in another campus (FLC doesn't match receiving FLC), the block of FTDs should be forwarded to Accounting.

    Campus FLC Campus
    18 Austin
    17 Cincinnati
    09 Kansas City
    29 Ogden

  2. Transmittal block integrity shall be maintained at all times.

  3. FTD mail received after the prime shift, but before midnight on the same day, is considered received on the date received.

  4. Remove all staples, clips, etc. Tear off the perforated portion on side for SCRIPS processing.

  5. Some transmittals are received with adding machine tapes which list individual FTD coupon amounts. Keep the tapes in the order of the blocks and place in order in the back of the tray of FTDs to be routed to the Accounting Branch, FTD function. Edit the last three digits of the Transmittal Locator Number (TLN) shown on Form 2284 on the adding machine tape. Adding machine tapes should be destroyed when the individual FTD coupon amounts are listed on the back of the transmittal. See Figure 3.10.72-4.

    Figure 3.10.72-4

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

  6. Route loose FTD coupons (with incoming envelopes attached), incomplete shipments of FTD's, tapes, and all other correspondence received, to the FTD IAC. Do not separate coupon from the Transmittal Block. Pull entire Block of coupons and send to FTD IAC.

  7. Incomplete shipments of FTDs are:

    • Photocopies

      Exception:

      If the photocopy is the same size as a regular FTD coupon and can be processed through SCRIPS, it is no longer considered "incomplete" . Do not cut down to size to "make perfect" .

    • Mutilated shipments

    • Multiple copies of transmittals

    • Federal Reserve Bank (FRB) or Depositary AOCs sent to IRS

    • FTD's without a transmittal or transmittal without FTD's

  8. When routing transmittals and/or FTD coupons to the Interagency Coordinator, prepare Form 8646 for each block of work. Provide the TIN and date received.

    1. Forms 2284, Advice of Credit, boxes 1, 2, 4, 7, 8, or 13 may be checked.

    2. Forms 8109, FTD coupons, check boxes 1 and 5.

  9. Examine blocks of FTDs to determine that the deposit date on the bank transmittal, Form 2284, is the same as the payment date on the FTD coupon. Mark the area on the FTD coupon designated as "IRS USE ONLY" using a number 2 medium pencil in the following situations:

    1. Missing bank date stamp.

    2. When month/day digit(s) is not legible or missing.

    3. Bank date stamp is different than transmittal deposit date.

    4. When there are multiple date stamps, apply the earliest date.

  10. Forward completed blocks to the SCRIPS function, and notate the received date on each tray of work.

    1. DO NOT mark the "IRS USE ONLY" box if payment date is handwritten or typed in the space provided.

    2. If the FTD coupon does not reflect a date, do not look to the back of the coupon; mark the "IRS USE ONLY" box.

    3. If the FTD coupon only reflects an encoded date, it is acceptable if date matches the deposit date.

    4. Accept payment dates without a year and/or where year has been changed.

  11. If a "loose" non-Remit FTD coupon (Form 8109 or Form 8109B) is attached to a return, staple it behind the return and continue processing the return. When received together with remittance, keep together and route to Payment Perfection.

  12. If you receive a request for a " Reorder" of FTD coupons, route it your FTD IA Coordinator in Accounting.

  13. Route Form 8109C or any request for Change of Address to Entity.

  14. Occasionally, the depositary or taxpayer will inadvertently forward a check and FTD coupon (Form 8109 or Form 8109B) to a campus. When this occurs, examine the FTD coupon to determine if there is a Bank Name/Date Stamp in the "BANK NAME/DATE STAMP" box. If "Bank Name/Date Stamp" is present, paper clip the FTD coupon(s) behind the check and route the entire package to the FTD IAC (Interagency Coordinator) in Accounting Branch.

  15. If bank date stamp is not present, date stamp and attach the FTD coupon(s) behind the check and route to Payment Perfection Unit on the date received. See Figure 3.10.72-5 .

    Figure 3.10.72-5

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

  16. If check is made out to the Bank , send to FTD Unit in Accounting. If the check is made out to IRS, route to PPU.

3.10.72.5.12  (01-01-2010)
Sorting Automated Collection System Mail

  1. ACS Mail is usually identified upon receipt because it contains a unique P.O. Box Address for the ACS Support sites. It should remain intact for the Extractor to sort the contents quickly. Initially, sort the mail as:

    1. Remit with Source Document

    2. Remit with No Source Document, but Levy Payment could be indicated on the check

    3. Non-Remit ACS Mail to be routed to ACS Support

    4. "Other mail" addressed to an "ACS P.O. Box" (to be routed to correct function)

      Note:

      If your site has a special Program Code, be sure to report your time and volume under that code when working ACS mail.

  2. All ACS mail with-Remit or payment with indication of "levy" should be routed to Payment Perfection (including the Source Document) for IDRS research to post to the earliest CSED. ACS mail or indication of "levy" is never sorted as "Perfect" .

  3. The designated Post Office Boxes for ACS mail are:

    ACS Support Sites
    ACS Support
    P.O. Box 24017
    Fresno, CA 93779-4017     		ACS Support
    P.O. Box 219236 or
    P.O. Box 219420 or
    P.O. Box 419236
    Kansas City, MO 64121-xxxx
    ACS Support
    P.O. Box 145566
    Cincinnati, OH 45250-5566     		ACS Support (Philadelphia)
    P.O. Box 57
    Bensalem, PA 19020

  4. Always date stamp ACS mail and attach the envelope. If multiple forms or correspondence with multiple remits come in the same envelope, try to match up the individual remit with the source document, then route to Deposit in the correct order.

  5. In addition to the unique P.O. Box for ACS mail printed on the notice, "ACS mail" is also any Form 668-A(c), Form 668-W(c), Form 8519, or LT/LP letter.

3.10.72.5.13  (01-01-2010)
Extracting and Sorting – Form 1040ES and Form 1041ES

  1. Sort Estimated Tax payment (ES) vouchers into three sorts:

    1. Scannable (for the Transport) – Scan line is legible, has no edit marks on it , and there is no fold on the voucher that will jam the machine.

      Figure 3.10.72-6

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

    2. Perfect (for RPS) – Voucher can have a Name/Address change, "Deceased" or "Estate " edited on the voucher, and can have the "fold line" near the scan line on the voucher.

    3. Imperfect (for PPU) – Multiples/Splits (i.e. multiple checks for one voucher, multiple forms with one check, multiple checks with multiple vouchers, incomplete/edited scan line, handwritten, or prior year voucher

  2. Place the "ES" voucher on top of the check when routing for processing.

  3. ES payments are never sorted as delinquent.

3.10.72.6  (01-01-2010)
IRS Received Date

  1. This section contains procedures on IRS Received Date stamping and Postmark Date stamping, when required.

3.10.72.6.1  (01-01-2010)
Received Date Stamp

  1. The date a document is received in the Campus is the date stamped as the "IRS Received Date" . All mail received from 12:00 a.m. to 11:59 p.m., seven days a week, including Saturdays, Sundays, and legal holidays is date stamped with the actual date received.

    1. Any mail accepted at campuses on Saturdays, Sundays and legal holidays, is tagged with the date it is accepted by the Campus. The mail does not necessarily need to be processed on the day received, but when processed, it must be stamped with the actual date received. When mail is received in the Campus after the daily processing "cut-off" , the mail must be tagged so it can be stamped with the actual date it was received.

    2. Lockbox will date stamp their own documents. If any documents are received from any lockbox location without a date stamp, you must date stamp them with the date of the others in the tray/box received from Lockbox.

  2. An "Official Received Date Stamp" shall consist of no less than:

    1. The word "Received"

    2. "Month-alpha" or "numeric" characters

    3. "Day" - (For example, can be "-1" , "1" or "01" )

    4. "Year" -Four digits

    5. "Serial Number"

    6. "Area Office ID" , another SP Campus, or a "Field Assistance Site"

      Exception:

      Returns date stamped by Taxpayer Advocate (TAS) are not considered an official IRS Received Date. Stamp again with the IRS Received Date upon receipt.

      Note:

      Date stamps should be tested at the start of each shift to ensure they reflect the current date. You can "test" it on your Identifying Tag that you place in your Initial Candling bag, if you are extracting. See Figure 3.10.72-7 showing the elements required in a Received Date stamp.

    Figure 3.10.72-7

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

  3. An acceptable "IRS Received Date" stamp shall:

    1. Only be stamped on the face (page one) of the document in an area that does not cover taxpayer information.

    2. If you stamped the incorrect Received Date and you can edit legibly, you do not have to "X" the entire stamp. See a legible entry in Figure 3.10.72-8.

      Figure 3.10.72-8

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

    3. If you stamp an incorrect or illegible received date on a return and you are unable to edit it legibly, "X" it and re-stamp with the correct Received Date. This is the only time that Extraction will "X" a Received Date. See Figure 3.10.72-9.

      Figure 3.10.72-9

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

  4. Refer to IRM 3.10.72.5.7 for returns, forms, and documents that always require a Received Date and attach envelope.

3.10.72.6.2  (01-01-2010)
Received Date Stamping Requirements

  1. Occasionally, a return due date falls on a Saturday, Sunday or legal holiday. In this case, the return due date is considered to be the next business day. However, this does not extend the grace period. It is always calculated from the legal due date.

  2. Honor the original IRS Received Date if a transshipped return has a Received Date present (including IMF & BMF International returns from other campuses or IRS offices). For example, Austin (AUSPC) and Ogden (OSPC) Submission Processing Campus do not have to stamp transshipped International returns with the date the return was actually received in AUSPC or OSPC.

  3. In 2009, Code & Edit discontinued mailing Refund returns back to the taxpayer for missing information, but you may continue to see some. If a return is received with a "green/blue sheet" and the previous Received Date was not circled when mailed back to the taxpayer, stamp the return again with the current received date. Do not "X" any previously stamped received dates. Forward for processing.

  4. Refer to the following IRM Exhibits to determine date stamping requirements for the various document types:

    1. Exhibit 3.10.72-6 – Sorting Individual returns and Documents (ATSPC, AUSPC, FSPC & KCSPC)

    2. Exhibit 3.10.72-7 – Sorting Business returns and Documents (CSPC & OSPC)

    3. Exhibit 3.10.72-8 – Sorting Non-Master File returns and Documents (CSPC)

  5. All tax returns mailed from a foreign country are timely if the foreign postmark is on or before the prescribed due date. If mailed by a designated PDS (generally DHL), the date accepted by the carrier is the Postmark Date. If foreign returns are received at a campus other than Austin (for IMF) or Ogden/Cincinnati (for BMF), date stamp them prior to transshipping.

  6. There are only four foreign posts that are acceptable IRS Received Dates. If you have an IRS Received Date stamp from London, Paris, Beijing, or Frankfort, accept the date as the official IRS Received Date.

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  8. The "general rule" is: If you date stamp, you attach the envelope. If in doubt, always date stamp. Refer to IRM 3.10.72.5.7.

3.10.72.6.2.1  (01-01-2010)
Processing Cycle/Due Date

  1. Refer to IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates for due dates of returns.

  2. When the due date of the return falls on a Saturday, Sunday or legal holiday, the return is considered timely if postmarked by the first business day after that date-IRC 7503. Refer to IRM 3.30.123 for information regarding state or District of Columbia holidays, in addition to Federal holidays.

  3. When a return is received after the Grace Period, the USPS Postmark Date or the date the package was dropped off to a designated Private Delivery Service (PDS) determines timely filing. The Extractor must either attach the envelope showing the Postmark Date, or the label from the PDS envelope/package.

  4. If there is a single return in one envelope, stamp the Received Date and attach the envelope to the back with the postmark facing outward. If there are multiple returns in one package, attach the envelope to the top document, then stamp the Postmark Date and Received Date. On subsequent documents, use the Dual Date stamp, or single Postmark and Received Date stamps.

3.10.72.6.2.2  (01-01-2010)
"Postmark Date" and "Received Date"

  1. This section contains procedures for determining the Postmark Date on mail received from a designated Private Delivery Service (PDS) or the United States Postal Service (USPS), including Private Metered mail delivered by the USPS.

  2. The Postmark Date is used to determine timely mailing/timely filing. It is important that the extractor keep the envelope attached to a form or document when the postmark date is required.

  3. IRC 7502 provides what is commonly called the "timely mailing-timely filing" rule. For example, an individual income tax return would be considered timely filed even if received after the April 15th due date as long as the return was delivered to the United States Postal Service or a designated Private Delivery Service (PDS) in an envelope with the correct postage and properly addressed envelope on or before the April 15th due date.

  4. Use the following rules to determine the Postmark Date for mail delivered by the United States Postal Service (USPS), Private Metered (USPS), and designated Private Delivery Services (PDS).

    1. If a container/envelope has both a USPS postmark and a private metered postmark, always use the USPS postmark

    2. If a container/envelope has only a private metered postmark , use it as the Postmark Date.

  5. If the container/envelope is from a designated Private Delivery Services (PDSs) outlined in IRM 3.10.72.2.4.3, use the date on the "drop-off" date shown on the label (if provided) as the Postmark, or use the rules for type of delivery service shown in IRM 3.10.72.6.2.4 (e.g. Next Day, Overnight, etc.)

  6. If there are multiple documents, Receipt & Control must stamp the Postmark Date and Received Date on the first document and attach the envelope, then stamp both the Postmark Date and Received Date on all subsequent documents contained in the envelope (or use a Dual Date). If using single stamps, stamp the Postmark Date in the left margin and Received Date on the face (page one) of the document in an area that does not cover taxpayer information.

    • If the postmark is illegible, leave the Postmark Date portion blank, or "blank it out" .

    • If the postmark is missing, edit " Missing" in place of the date portion of Postmark.

3.10.72.6.2.3  (01-01-2010)
What is a Designated Private Delivery Service (PDS)?

  1. A Private Delivery Service (PDS) is simply a business that delivers customers' documents and packages within an agreed upon delivery schedule, such as "Overnight" , "Same Day" Service, etc. The United States Postal Service, as well as DHL, Fed Ex, and UPS are recognized by IRS as Private Delivery Services (PDS's).

  2. Rev. Proc. 97-19 provides the criteria used to determine whether a PDS qualifies as a designated PDS under section 7502(f).

  3. Notice 2004-83 provides the current list of designated PDSs and types of services that are recognized.

  4. If the type of service is not specifically shown in this notice, it is a non-designated PDS. The Postmark Date to never an issue with a non-designated Private Delivery Service because their so-called Postmark Date is not recognized under IRC 7502, which is the "timely mailed/timely filed" rule.

    Note:

    DHL generally only delivers International mail within the U.S. The International service is a designated service and the Postmark/Drop-off Date should be considered under the timely mailing/timely filing rule.

3.10.72.6.2.4  (01-01-2010)
Determining Postmark Date

  1. For USPS mail, the postmark is generally easy to read and locate. However, if the Postmark date is illegible and you need a Postmark Date for dual date stamping, it will be blank, or you will have to "blank out" the date portion of the Postmark Date stamp, depending on the type of stamps your campus uses. If the Postmark Date is missing, edit " MISSING" in the date portion of the Postmark Date stamp. If the Postmark is illegible or missing, the taxpayer will have to prove the Postmark Date; we will only stamp the Received Date. See IRM 3.10.72.6.2.2 for Dual Date stamping requirements.

  2. For PDS mail, the postmark is sometimes visible on the shipping label because it gives the "drop-off" dates and expected delivery date. If illegible or missing, then use the chart below to determine the approximate Postmark Date since the type of service provides us an estimate of the "drop off" date. This calculation is based on the estimated delivery schedule of the carrier and IRS Receipt & Control Mail Room operations tour of duty for accepting deliveries.

  3. Business days are Monday through Friday. Do not consider Saturday a pick-up or drop-off day. Be aware of any Holidays during the time you are subtracting business days to determine a Postmark Date.

    If the Carrier is: And Type of Service is: Then Postmark Date is:
    USPS First Class (Correct Postage Stamp(s) or weighted and metered by the USPS) Stamped Postmark date (or earliest one, if multiple Postmarks are present)
    USPS Private Metered Private Meter Date
    USPS First Class If illegible, leave (or make) the date portion of the Postmark Date blank.
    USPS First Class If BLANK – Edit "Missing " for the date portion of the Postmark Date stamp
    USPS Certified/Registered Mail Stamped Postmark date (or earliest one, if multiple Postmarks are present)
    USPS Express Mail Subtract 1 Business day from the Received Date.
    USPS Priority Mail Subtract 3 Business days from the Received Date.
    DHL Express Subtract 3 Business days from the Received Date.
    FedEx Priority Overnight Subtract 1 Business day from the Received Date.

    Note:

    For Alaska and Hawaii, subtract 2 Business days.
    FedEx Standard Overnight Subtract 2 Business days from the Received Date.

    Note:

    For Alaska and Hawaii, subtract 3 Business days.
    FedEx 2 Day Subtract 3 Business days from the Received Date.

    Note:

    For Alaska and Hawaii, subtract 4 Business days.
    FedEx International Priority Subtract 3 Business days from the Received Date.
    FedEx International First Subtract 2 Business days from the Received Date.
    UPS Next Day Air Subtract 1 Business day from the Received Date.
    UPS Next Day Air Saver Subtract 1 Business day from the Received Date.
    UPS 2nd Day Air A.M. Subtract 2 Business days from the Received Date.
    UPS 2nd Day Air Subtract 3 Business days from the Received Date.
    UPS Worldwide Express Subtract 3 Business days from the Received Date.
    UPS Worldwide Express Plus Subtract 3 Business days from the Received Date.

  4. The number of business days to subtract is an estimate based on the carrier's predicted delivery time frames shown on their websites. For example, if the domestic package is guaranteed by 4:30 p.m., an additional day was added since this would actually be received after normal business hours at a Campus Receipt & Control operation. No delivery time is fully guaranteed, nor is consideration taken for time zone changes for International packages. If the suggested number of business days subtracted from the Received Date will make it late by only 1-2 days, or the package is mixed with other packages received earlier than the current date (i.e. peak time when we cannot open all receipts on the day received), then allow the extra day(s) to make it timely.

3.10.72.6.2.5  (01-01-2010)
Documents Received From Other IRS Sites via Form 3210

  1. Documents received or secured by other official IRS facilities (i.e. Area Offices or other Campuses) and mailed with a Form 3210 transmittal should have been stamped appropriately. Taxpayer Assistance (TAC)/Area Offices (AO) do not stamp the following returns if timely received and no remit:

    • Calendar year Form 1040, Form 1040A, and Form 1040EZ

    • Form 940, Form 941, and Form 943

    Note:

    If you have the Form 3210 from the TAC site (not Taxpayer Advocate (TAS)) for one of the above forms and it is received in the Campus with no remit after the Grace Period, do not stamp them. They will erroneously post as late filed. If the return was received in the TAC site with Remit, they will always stamp it "Received with Remittance" . If you notice that a TAC site is not following their instructions, report it. Local Management should contact the Area Office directly.

  2. TAC sites date stamp all Extension Form 4868 and Form 7004 upon receipt.

  3. When documents are transshipped to a site, verify the receipt of the document(s) in the package against the Form 3210, sign and date it, mail the copy back, and keep a copy for your files. See IRM 3.13.62.7 for information regarding Forms 3210.

  4. Be sure to report time on Form 3081 (time sheet) and volume of Forms 3210 (drop a UPC card) using the designated OFP code 31-800-53020.

  5. Refer to IRM 3.10.72.11 for Transshipment Guidelines.

3.10.72.7  (01-01-2010)
Sorting With-Remittance Returns/Documents General

  1. All returns received in the Campus with a remittance must be sorted, batched, blocked, and identified as "With Remittance" . All Lockbox Remittance returns received in the Campus must be sorted, batched, blocked and identified as "With Remittance(W/R)" if the transmittal indicates they had Remit. Lockbox can receive returns without Remit.

  2. Ensure that the With-Remit sort integrity is maintained with proper batching and blocking. Returns received with a remittance and annotated with one of the following literals are to be processed as Amended returns and routed to Payment Perfection.

    • Amended

    • Copy

    • Corrected

    • Duplicate

    • Revised

    • Substitute

    • Supersedes

    • Tentative

  3. Full-Paid category only pertains to current year timely-filed IMF returns.

  4. Double check non-remit Form 706 and Form 709 for presence of a remittance, in addition to all Balance Due returns/notices before forwarding to Batching Unit.

3.10.72.7.1  (01-01-2010)
Perfect Remits for RPS or Transport

  1. "Perfects" are defined as checks or documents that require no additional perfection or correction for processing. The perfect sort is intended to maximize the volume of data processed directly through the RPS function. Identify and sort perfect "with-remittance" items and route them directly to RPS.

  2. "Perfect" will have one remittance with a Return or Source Document attached (or a "loose" check) that contains all of the items listed below:

    1. Legible taxpayer name (either handwritten or typed) with no entity changes and numeric amount, and

    2. No annotations on Check or Source Document (e.g. Amended, Duplicate, Copy, Deceased, Estate, Substitute, Revised, etc.), and

    3. Primary TIN (9 digits with no hand-written changes), and

    4. One or more Tax Period(s) indicated on Source Document or Check, with no taxpayer intent. Refer to (6) below for the exception.

      Exception:

      ACS payments or any indication of a "levy payment" on a check is never a perfect payment. Always route to PPU.

  3. If "perfect" , remove the check stub. If a "check with stub" is received with a Form/Return, place it behind the Form/Return and route to Pre-Batch. If " imperfect" , leave the stub attached to the check and route to Payment Perfection. Refer to IRM 3.10.72

  4. If the payment is for a Form 5330 or Form 5558, it is only perfect if it includes all of the items listed in (2) plus the Plan Number. otherwise, route to PPU.

  5. If the payment is for a Form 8038-T, it is only perfect if it includes all of the items listed in (2) plus the Report Number. Otherwise, route to PPU.

  6. If there are multiple checks and multiple source documents included in a package, try to match them up and make them "perfect" . For any that cannot be made "perfect" , route to PPU. If in doubt, route to PPU.

  7. If there are multiple tax periods shown and the TP has designated amounts to be posted to specific periods, route to PPU. (e.g. TP writes a check for $100 and states, "apply $50 to 2008 and $50 to 2009" .) You must follow the taxpayer's intent when they specify how to post the remit. However, multiple tax periods listed on a notice and one check attached does not indicate "intent" to post to a specific tax period.

3.10.72.7.2  (01-01-2010)
Imperfect Remits for Payment Perfection Unit (PPU)

  1. An imperfect remittance return or document is one that does not meet one or more of the criteria in IRM 3.10.72.7.1, Perfect Remits for RPS or Transport.

  2. Route all imperfect returns and documents to Payment Perfection.

  3. When sending remittance associated with documents to Payment Perfection, avoid attaching to the right side, near dollar information.

3.10.72.7.3  (01-01-2010)
Notices

  1. Non-Remit Balance Due Notices are routed according to the Routing Guide in Exhibit 3.10.72-1 and Exhibit 3.10.72-2, or your local Maildex. Leave returns attached to the back of the Notice.

  2. With Remit Balance Due notices should be processed using the following procedures:

    1. All remittances shall be associated with the proper notices.

    2. Destroy the top part to perfect notices.

    3. Scannable notices shall be sorted by placing the notice on top of the check. See Figure 3.10.72-10 for examples of scannable notices.

    4. Remove all staples from Notices and Checks to prevent any damage to the Transport equipment.

    5. Sort perfect notices according to the MFT code.

    6. Separate CP 42, CP 49, CP 138, CP 167 and CP 207 notices and route to Payment Perfection.

    7. Foreign remittances are processed separately. Route remittances to the Deposit activity.

    Figure 3.10.72-10
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.10.72.8  (01-01-2010)
Major (Primary) Form Sort – Individual Master File (IMF)

  1. AUSPC Only - The President and Vice President of the United States returns should be addressed to the Campus Director. Alert your Management Staff analyst when the returns are received. The Analyst will treat these returns as "walk-throughs" and follow procedures in IRM 3.28.3.

  2. All IMF Original and Amended returns marked "KIA" in the top center margin should be processed by Kansas City. Upon receipt, immediately route to Kansas City using UPS mail with a tracking number. Send it to the attention of the KITA Coordinator for AM. Name, phone number and fax can be found on SERP, Who/Where tab, then KITA Coordinator. Notify the KITA Coordinator for AM when you are mailing a return (including Original returns) and follow-up on receipt.

  3. Sort separately:

    • Original timely filed Form 1040 series returns

    • Delinquent Form 1040 series

    • Form 1040 returns with "Amended" (or other indication written on the return) (If an Original Form 1040 series is attached to a Form 1040X, keep together.)

    • Prior Year returns ( 2008 and prior)

    • Tax Period 2006 or prior, sort and route the package as an "Expedite" to the Statute Unit. If a return is stamped "Statute Cleared" , continue processing as a Prior Year.

  4. Form 1040, Form 1040A, and Form 1040EZ:

    1. Sort all Timely Filed with remittance IMF returns into "Full Paid" and "Part Paid" categories.

      Note:

      Beginning April 23, all returns are Delinquent and will be sorted as "Part Paid" .

    2. Full paid-Remittance amount is equal to amount on balance due line on timely filed returns.

    3. Part paid-Remittance amount differs from balance due line; Or there is more than one money amount on balance due line; or the return is Delinquent or a prior tax year.

    4. Form 1040 received with remittance and Form 2555 attached or foreign should be routed to Remittance Perfection.

    5. Sort Form 1040EZ-T (TETR Telephone Tax) with Prior Year Forms 1040EZ.

    6. Sort a "loose" Schedule H and route to Code & Edit.

    7. Sort any 2007 return marked "Stimulus Payment" , "Rebate" , "Stimulus Plan" , "Economic Stimulus" or similar type wording with Prior Year returns.

  5. Sort Form 1040EZ returns for ISRP processing ("By-Pass" Code & Edit), with the following EXCEPTIONS:

    1. With Remit

    2. Prior Year

    3. Missing Signature

    4. Missing W-2

    5. With Attachments

    6. Form 1099-SSA Attached

    7. Lines 6 through 13 are blank, dash (-), or zero (0)

    8. All lines are "0" , blank, or "-" , but Line 8b (Combat Pay) has an amount, or

    9. Entity area is blank (Taxpayer's Name/Address/SSN)

      Note:

      With Remit Form 1040EZ will be batched and sent to ISRP following deposit of remittance. This includes Full Paid returns received from Lockbox.

  6. AUSPC Only - Form 8453 and Form 8453-OL

    1. Route Form 8453 to Numbering. Keep attachments.

    2. Route Form 8453-OL to e-Help.

  7. Refer to Exhibit 3.10.72-6 for IMF Sorting Instructions.

3.10.72.9  (01-01-2010)
Vouchers (IMF and BMF)

  1. Some returns and documents with a remittance are received with a voucher. Ensure that the voucher belongs to the return or document.

  2. Campuses have options on how they choose to process vouchers. Follow your local procedure.

    1. Option #1 –
      For current year return with a perfect voucher, separate the voucher and remittance from the return. Then, sort voucher as scannable (for Transport) and non scannable (for RPS).

      For current year return with an imperfect voucher, attach the voucher to the back of the return and route to Deposit.

    2. Option #2 –
      Vouchers can be attached to the back of the return and routed appropriately.

  3. If a voucher is received alone (without remittance or without a return), destroy as classified waste.

  4. If a voucher is received with a payment, but no return, sort as scannable, perfect, or imperfect. See Figure 3.10.72-11 for an example of a perfect payment voucher.

    Figure 3.10.72-11

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

3.10.72.10  (01-01-2010)
Major (Primary) Form Sort – Business Master File (BMF)

  1. See Exhibit 3.10.72-7 for instructions for sorting BMF (including TE/GE) returns and documents.

  2. BMF forms with any amount listed on the overpayment line must be sorted as "Refund Returns" . This applies to returns that have elected to have overpayment applied to next return (Credit Elect).

  3. This sort shall not be discontinued at any time during the year. Neither special blocks nor special document codes shall be set aside for refundable documents at the Headquarters level.

3.10.72.11  (01-01-2010)
Transshipment Guidelines

  1. See Guidelines and Shipping Instructions for Packages Containing SBU and Sensitive PII Documents when items are sent through UPS by going to the following link: http://publish.no.irs.gov/mailtran/PIIHardcopy.html. Follow any local procedures to ensure any shipments of packages containing Sensitive but Unclassified (SBU) and sensitive Personally Identifiable Information (PII) hardcopy is handled correctly.

  2. All misdirected IMF & BMF returns when received by a campus shall go through the general "With Remit" & "No Remit" sort in Extraction.

  3. All IMF & BMF "With Remit" will be forwarded to Deposit.

  4. Any return with a Tax Period ending in 2006 or prior that needs to be transshipped should first be "Expedited" to your Statute Unit, prior to transshipping. Once the Statute Unit has stamped it "Statute Cleared" and returned it to Receipt & Control, then transship to the appropriate Campus.

  5. District Offices/Area Offices servicing campuses will forward any returns and payments to their servicing Submission Processing Campus address, unless Paper Check Conversion has been implemented in their site.

  6. The IMF sites will process the payment and transship the BMF return to the designated BMF Campus, and vice verse.

  7. Any required date stamping will be done by the receiving site prior to transshipment.

  8. Misdirected tax returns do not have to be sorted by form type, nor counted. However, estimated volumes must be provided to the receiving SP site on the Form 3210.

  9. The receiving site shall ensure that each box has at least one cover transmittal (Form 3210) in the box clearly identifying the contents of each box. Every effort should be made to transship returns on the same day received at the receiving site.

  10. The receiving site must send 2 copies of each Form 3210. If using standard Form 3210, carbon copies count as the second copy. If using an electronic version, then an original and a copy must be sent. The "Copy" must be clearly identified.

  11. After Deposit, the Form 3210 for "Remit" return(s) and "Non Remit" returns(s) can be placed in the same box if space permits.

  12. Forms should be placed in Box A-670C, Class domestic, style 2, class C (White boxes with black printing or "Records Retiring Boxes/Moving Boxes" ). Apply strapping tape to the box to ensure the contents are secure. ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  13. Forms 656 with remit should be shipped to the appropriate site. The remit is not processed by Deposit in a Submission Processing site. Refer to IRM 3.10.72.15.3.

3.10.72.12  (01-01-2010)
IMF Minor (Secondary or Fine) Sort

  1. Sort all Form 1040 series returns separately by Form type.

  2. Form 1040 series returns with the notation "Injured Spouse" on the first page of the return should be sorted separately.

  3. Sort Substitute for Return ("SFR " ) Form 1040 returns with a notation of "SFR-COLL" and "SFR-EXAM " returns separately.

  4. Sort "loose" Schedules H separately.

  5. Sort separately Form 1040/Form 1040 A/Form 1040 EZ with one of the notations shown below as an Amended return and follow procedures for a Form 1040X. See instructions below:

    • "Duplicate"

    • "Copy"

    • "Substitute"

    • "Amended"

    • "Corrected"

    • "Revised"

    • "Superseding"

    • "Tentative"

  6. Any Form 1040 original return (or one marked "Amended " ) or Form 1040X with "KIA" written in the top margin should be routed to Kansas City. KCSPC should contact the KITA Coordinator for AM. All other sites should refer to SERP, Who/Where, KITA Coordinator for Kansas City AM.

  7. Form 1040NR, U.S. Nonresident Alien Income Tax Return (AUSPC only).

    1. Sort into the following categories after major sort has been accomplished: Individual type entity (IMF or Fiduciary entity NMF): Effectively connected income (entry on line 8, Doc Code 73), due date April 15, or non-effectively connected income (no entry on line 8, Doc Code 72), due date June 15 or all others.

    2. Annotate Lloyd's of London Form 1040NR returns with cover memorandum denoting new accounts with "X" in the upper right corner of the return.

    3. Form 1040NR (if 1040 present do not detach), Form 1040NR EZ, Schedule H-PR, Form 1040PR, Form 1040SS, Form 1040SS (NMI), Form 1040-GUAM, Form W-2AS, Form W-2GU, Form W-2VI, Form 1040A, and Form 1040EZ with a foreign address or Section 911, Section 931, or Section 933 of the Internal Revenue Code (IRC) notated, Form 1042S, Form 4563, Form 5074 and those claiming Guam ES credits shall be transshipped to AUSPC. When these forms are received at AUSPC, they will sort into separate categories.

    4. Sort Forms 1040NR-EZ separately.

  8. Routing of Form 1040X, Amended U.S. Individual Income Tax Return:

    Note:

    Form 1040X should be sorted for batching, except Net Operating Loss Carryback claims outlined in (d) below.

    1. Keep multiple Form 1040X, returns and attachments from one taxpayer together.

    2. Any Form 1040X with CP-2000 attached should be routed to AUR (Automated Underreporter).

    3. Route Form 1040X returns marked " KIA" to Kansas City AM. Expedite to KCSPC with attention line to the KITA Coordinator for AM. If transshipping a return to Kansas City, look on SERP, Who/Where, and KITA Coordinator to notify mailing and follow-up of receipt of the document.

    4. When the box on page 2, Part II is checked indicating a Net Operating Loss Carryback, keep any attached copy of a Form 1040 with the Form 1040X and "Expedite" the package to Accounts Management. If the box is not checked, but a Form 1045 or a "Schedule A-NOL" or "Schedule B-NOL Carryover" from a Form 1045 is attached, "Expedite" to Accounts Management.

      Note:

      Form 1040X meets statute criteria when the Form 1040X tax return is for 2006 Tax Period and prior. On the February 2009 revision (one with 3 columns), the Tax Period is located on the top line; on the November 2009 revision, there are check boxes on Line B indicating the specific Tax Period. Date stamp before routing to Statute.

  9. If a Form 1040X is received with a Form 1040 for the same tax period, staple flush behind the Form 1040X. If there are multiple Form 1040 returns, stagger the documents and send through RPS if perfect criteria is met.

  10. Form 1040X received with Form 8379, or "loose" Form 8379 – "Injured Spouse" claim:

    1. No Form 8379 – Form 1040X received with Form 1040 series and notation of "Injured Spouse" is indicated on the Form 1040 series, staple the Form 1040X behind the Form 1040 series return making sure the "Injured Spouse" notation is visible, and route to Code and Edit as one package. Do not separate.

    2. Form 8379 Present – Form 1040X and Form 8379 received with Form 1040 series, stagger the Form 8379 behind the Form 1040 series, then staple the Form 1040X behind the Form 8379; route to Code and Edit as one package. Do not separate.

    3. Form 1040X received with Form 8379 and no Form 1040 series attached – Staple the Form 1040X behind the Form 8379 and forward to Accounts Management Branch.

    4. Form 8379 received by itself – Forward to Accounts Management Branch.

    Note:

    Do not confuse "Innocent Spouse" (Form 8857) request with "Injured Spouse" (Form 8379) claims.

  11. When a Form 8857, Request for Innocent Spouse Relief, is received, ship daily using overnight traceable mail to the Cincinnati Campus at the following address:

    Route "Request for Innocent Spouse Relief" (Form 8857) to:
    Internal Revenue Service

    201 W. Rivercenter Blvd. Stop 840-F
    Covington, KY 41012

  12. Sort all CP 08, CP 09, and CP 27 notices separately:

    1. Date stamp in the lower portion of the front page (Page 1) of the CP notice. If no CP "letter" is present, date stamp the CP notice slip/tear-off. Never obstruct any data entered by the taxpayer.

    2. If the CP notice is attached to the top of a Form 1040X, leave the package together, otherwise bring the CP notice to the front and route the package to the 1040X Unit.

  13. Always Date Stamp Extensions forms received after the Grace Period and keep the envelope. If remit attached, keep the envelope attached and route to RPS or PPU. Use the following chart to sort Extensions:

    Type of Extension Request If Received January 1 – April 22: If Received April 23 and subsequent:
    Correspondence request for Form 4868 extension with attached list(s) of foreign taxpayers Route to AUSPC Entity. Date Stamp Correspondence, attach envelope, route to AUSPC Entity.
    Form 2350 AUSPC - Sort for Batching to C&E. AUSPC - Date Stamp, attach envelope, route to Batching.
    Form 2688 Sort with Form 4868 (with Attachments) to be batched for Code & Edit . Date stamp, keep envelope, and sort with Form 4868.
    Form 4868 (Timely, Non-Remit and NO Attachments) Sort separately from ones with Attachments. _______________
    N/A
    Form 4868 With Attachments Sort separately from ones with NO attachments. Date Stamp, keep envelope, route to Batching/Code & Edit.
    Form 4868 (Late Filed, Rec'd after April 22nd) _______________
    N/A

    Note:

    In subsequent days following the Grace Period, it is suggested that the sites "clean the mail" in the Receiving Area. This means that you should take a sample of the USPS trays to search for timely Postmark Dates. If there are groups of mail with timely Postmarks, pull this to the front and notify the Extractor that this does not have to be date stamped. This is especially critical for Form 4868, since they are batched under Timely and Delinquent DLNs. This procedure will prevent further re-batching of "timely work" identified in Code & Edit. If there are specific USPS locations that did not deliver the mail timely to IRS, IRS Management should contact the USPS to report incidents.

3.10.72.12.1  (01-01-2010)
Form 8408 - Notice of Action for Entry on Backup Withholding File (KCSPC and PAMC)

  1. Form 8408 has been centralized in Kansas City (KCSPC) and in Philadelphia (PAMC) CSCO functions where they will input the information from Form 8408 to IDRS.

  2. Route all Form 8408 to the appropriate CSCO site based on:

    1. SSNs - Kansas City Submission Processing Campus
      333 W Pershing Rd. Stop 5000
      Kansas City, MO 64999

    2. EINs - Philadelphia Accounts Management Campus
      11601 Roosevelt Blvd., South Building 657-S
      Philadelphia, PA 19155

3.10.72.13  (01-01-2010)
BMF Minor Form Sort Categories

  1. General BMF Instructions –

    1. All Foreign and U.S. Possession address returns are filed in OSPC.

    2. All Excise tax returns are filed in CSPC.

    3. All Exemption Organization and Employee Plan (returns filed with IRS) are processed in OSPC.

    4. All NMF processing is done in CSPC.

    5. Date stamp document and transship, when appropriate. When you receive a transshipped document that was date stamped by another IRS site, do not date stamp again.

  2. Sort all "Original" and "Amended" (written on the Return), Form with" X" , or Form 941c returns for Tax Periods/Quarters in 2006 and prior and "expedite" to the Statute Unit. If an Original form is attached to an Amended ("Amended" written at top, or Form "X," or Form 941c), look at the Tax Periods listed on both Forms. If either Tax Period/Quarter is 2006 or prior, keep them together and route the package to the Statute Unit. If the Form is stamped, "Statute Cleared" , continue processing. If not a potential Statute, move the "Amended" to the back and stagger the returns. Keep the package together.

  3. Refer to Exhibit 3.10.72-7 for BMF sorting instructions.

3.10.72.13.1  (01-01-2010)
Form CT-1 – Employer's Annual Railroad Retirement Tax Return

  1. It is a Calendar Year return due February 28.

  2. Sort non-remit forms into refund versus no refund.

  3. Pre-screen all non-remit Forms CT-1 marked "Amended" , "Revised" , or "Corrected" , or Form CT-1 X returns and route to Accounts Management.

  4. If a Form CT-1 is attached to a Form CT-1 X, keep them together. Move the CT-1 X to the back. Sort as a Form CT-1.

3.10.72.13.2  (01-01-2010)
Form 706 and Form 709 – U.S. Estate Tax Return and United States Gift (and Generation - Skipping Transfer) Tax Return

  1. Pre-screen all non-remit Form 706/Form 709 returns marked "Copy" , "Amended" , "Revised " , or "Supplemental" .

  2. Route all non-remit Forms 706NA returns marked "Copy" , "Amended" , "Revised" ,"Corrected " or "Supplemental" to the Philadelphia Accounts Management Center.

  3. If the legal residence (domicile) in block 3a on Form 706 (block 5 on Form 709) is a domestic address (any address in one of the 50 states of the District of Columbia), route the return to CSPC Estate and Gift Tax Unit.

    Note:

    Returns with APO or FPO addresses are considered domestic addresses.

  4. If the legal residence (domicile) in Block 3a on Form 706 (Block 5 on Form 709) is a foreign address or U.S. Possession (any address that is not in one of the 50 states or the District of Columbia), route the return to the Philadelphia Accounts Management Center.

  5. Sort by form number: i.e., Form 706, Form 706NA, Form 706GS(D), Form 706GS(T), Form 709.

  6. Sort no remit forms into refund versus no refund.

3.10.72.13.3  (01-01-2010)
Form 720 – Quarterly Federal Excise Tax Return

  1. Sort no remit Form 720 into refund versus no refund.

  2. Sort separately Form 720 showing any amount of $1 million or more on Line 3 (Tax).

  3. Route to Batching as "Expedites" .

3.10.72.13.4  (01-01-2010)
Form 940 and Form 940EZ – Employer's Annual Federal Unemployment (FUTA) Tax Return

  1. Pre-screen all non-remit Form 940 marked "Amended" , "Revised" or "Corrected" and send the return to Accounts Management.

  2. Form 940 is an annual return due January 31.

  3. When Form 940 is received with a Form 3210, acknowledge the Form 3210 in Receipt & Control. Continue to sort and batch the returns for processing.

  4. No special sort is needed for "6020(b)" returns.

  5. Form 940 with a foreign or U.S. Possession address will be processed through ISRP.

  6. Sort Form 940EZ with Form 940.

  7. Sort non-remit returns into Refund versus No Refund. A Refund return can have a money amount on line 15, the "Post to next return" , or "Send Refund" box checked. See Figure 3.10.72-12 below for indication of Refund and No Refund returns.

  8. Returns received for Tax Period 200512 and prior must be processed via ISRP.

  9. All other returns will be sorted and processed via SCRIPS using the instructions in (8) through (10) below.

  10. Sort Timely Filed (Current Year) returns without attachments (Page 1, Page 2 and Schedule A only) and without writing on Page 1 of the return as "Perfect" . These will be batched to be processed to by-pass Code & Edit.

  11. Sort Delinquent Filed (Current Year) and Prior Year returns without attachments (Page 1, Page 2 and Schedule A only) and with writing on Page 1 of the return as "Perfect" . These will be batched to be processed through Code & Edit.

  12. Sort all other returns as "Imperfect" and batch to be processed through Code & Edit.

  13. Additional Batching instructions can be found in IRM 3.41.277

    Note:

    This is a minimum standard. If your Campus is currently performing a more complex sort or sorting additional types of Forms 940, continue to do so.

    Figure 3.10.72-12

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

3.10.72.13.5  (01-01-2010)
Form 940PR – Employer's Annual Federal Employment (FUTA) Tax Return (Puerto Rican Version) (OSPC only)

  1. Form 940PR is an annual return and is due January 31.

  2. Process via ISRP.

  3. Sort no remit forms into refund versus no refund.

  4. Pre-screen all non-remit Form 940PR marked "Amended" , "Revised" or "Corrected" ,etc. and send to Accounts Management.

3.10.72.13.6  (01-01-2010)
Form 941 – Employer's Quarterly Federal Tax Return

  1. Form 941 is a quarterly return. The Tax Period ending months are 03 (due April 30), 06 (due July 31), 09 (due October 31) and 12 (due January 31).

  2. Pre-screen all non-remit Form 941 marked "Amended" , "Revised" or "Corrected" , etc. and send the return to Accounts Management.

  3. When Form 941 is received with a Form 3210, acknowledge the Form 3210 in Receipt & Control. Continue to sort and batch the returns for processing.

  4. No special sort is needed for "6020(b)" returns.

  5. Form 941 received with a Form 941C or a Form 941-M should be kept together with Form 941 taking precedence. Do not detach the Form 941C or Form 941-M.

    Note:

    The composite Form 941 must remain attached to Form 941-M. A composite Form 941 will have Form 941-M attached with the notation" Do Not Process" . If a "loose" Form 941-M is received, route directly to Code & Edit for them to route to the appropriate Compliance Function.

  6. Sort both 2009 revision returns (COBRA and Non-COBRA) separately from 2008 and prior revision returns.

  7. Sort non-Remit returns into Refund versus No Refund. A refund return can have a money amount on Line 15 (Line 13 for 2008 and prior revisions), the "Post to next return" , or "Send refund" box checked. See Figure 3.10.72-13.

  8. Returns received for 200412 Quarters or prior must be processed through ISRP.

  9. All other returns (200503 and subsequent quarters) will be sorted and processed through SCRIPS using the instructions in (9) through (11) below.

    Note:

    Sort according to the box checked in the "Report for this Quarter" box. If no box is checked and return contains pre-printed information, sort according to the pre-printed information. If no box is checked, the return does not contain pre-printed information, or multiple boxes are checked, sort the return as prior quarter.

  10. Sort Timely Filed (Current quarter) returns (either COBRA or Non-COBRA 2009 revision) without attachments (Page 1, Page 2 and Schedule B only) and without writing on Page 1 of the return as "Perfect" . These returns will be batched to by-pass Code & Edit.

  11. Sort Delinquent filed (Current quarter) and Prior quarter returns without attachments (Page 1, Page 2 and Schedule B only) and with writing on Page 1 of the return as "Perfect" . These returns will be batched to be processed through Code & Edit.

  12. Sort all other returns as "Imperfect" and batch to be processed through Code & Edit.

  13. Additional Batching instructions can be found in IRM 3.41.276.

    Note:

    This is a minimum standard. If your campus is currently performing a more complex sort, continue to follow the local procedure.

    Figure 3.10.72-13
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.10.72.13.7  (01-01-2010)
Form 941C, Form 941-X, Form 941-PR X, Form 943-X, Form 944-X, Form 944-PR X, Form 944(SP) X, Form 945-X, and Form CT-1 X (loose, or return attached) – Amended Returns

  1. Form 941C is a supporting statement to correct information originally filed on Forms 941, 941M, 941SS, 943 or 945.

  2. Route all "loose" Form 941C returns to Accounts Management for processing.

  3. If Form 941C is attached to a Form 941, Form 941M, Form 941SS, Form 943, or Form 945, keep the package together and move the Form 941C to the back. Sort the return based on the one on top.

    Note:

    Sort a Form 941M with Forms 941.

  4. Route all "loose" Form 94X X or Form CT-1 X to Accounts Management.

  5. If the "X" return is attached to an "original" form, keep the package together. Move the "X" to the back. Sort the return based on the form on top of the package. See the following table to see which "X " return is used to amend the applicable "original" return.

  6. Route all "loose" Form 941-X PR and Form 941-X SS to Accounts Management.

    Original Return Form Number Will Use the Following Form 94X Return to Amend the Original:
    941 & 941-SS 941-X
    941-PR 941-PR X
    943 943-X
    943-PR 943-PR X
    944 & 944-SS 944-X
    944-PR 944-PR X
    944(SP) 944(SP) X
    945 945-X
    CT-1 CT-1 X

3.10.72.13.8  (01-01-2010)
Form 941PR and Form 941SS – Employer's Quarterly Federal Tax Return (Puerto Rican Version) and American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands (OSPC Only)

  1. Form 941PR and Form 941SS are quarterly returns. The periods ending are 03 (due April 30), 06 (due July 31), 09 (due October 31) and 12 (due January 31).

  2. Process Form 941PR and Form 941SS via ISRP.

  3. Sort 2009 revision separately from 2008 and prior revision.

  4. Sort no remit from forms into refund versus no refund.

  5. Pre-screen all non-remit Form 941PR/Form 941SS marked "Amended" , "Revised" or " Corrected" , etc. or Form 941-X, or Form 941-PR X and send to Accounts Management.

  6. If a Form 941 PR is attached to a Form 941-PR X, keep them together. Move the "X" to the back; if a Form 941 SS is attached to a Form 941-X, keep them together. Move the "X" return to the back. Sort as the applicable "original" return.

3.10.72.13.9  (01-01-2010)
Form 943 – Employer's Annual Tax Return for Agricultural Employees

  1. Pre-screen all non-remit Form 943 marked"Amended" , "Revised" or "Corrected" , or Form 943-X and send to Accounts Management.

  2. This is a calendar year return due January 31.

  3. Sort 2009 revision returns separately from 2008 and prior revision returns.

  4. Sort non-remit forms into refund versus no refund.

  5. Sort all "6020(b)/Secured" returns separately as "Expedites" .

  6. If a Form 943 is attached to a Form 943-X, move the " X" to the back.

3.10.72.13.10  (01-01-2010)
Form 944 and Form 944SP – Employer's ANNUAL Federal Tax Return

  1. Pre-screen all non-remit Form 944/Form 944SP marked " Amended" , "Revised" or "Corrected " , 944-X, or 944(SP) X and send to Accounts Management.

  2. This is a calendar year return due January 31.

  3. Sort 2009 revision returns separately from 2008 and prior revision returns.

  4. If received between January 1 through the first Thursday in February - Sort timely filed non-Remit forms into Refund versus No Refund. Route as "Expedites" .

  5. If received after the first Thursday in February - Only sort into Current versus Prior Year.

  6. If a Form 944 is attached to a Form 944-X or a Form 944(SP) is attached to a Form 944(SP) X, move the "X" to the back.

  7. Sort all "6020(b)/Secured" returns separately as "Expedites" .

3.10.72.13.11  (01-01-2010)
Form 944PR and Form 944SS – Puerto Rican Version and U.S. Possessions (OSPC Only)

  1. Pre-screen all non-remit Form 944PR/Form 944SS marked "Amended" ,"Revised" or "Corrected " , Form 944-X, or Form 944-PR X and send to Accounts Management.

  2. Form 944 PR and Form 944 SS are annual returns due January 31.

  3. If received between January 1 through the first Thursday in February - Sort timely filed no remit forms into refund versus no refund. Route as "Expedites" .

  4. If received after the first Thursday in February - Only sort into Current versus Prior Year.

  5. If a Form 944PR is attached to a Form 944-PR X, keep them together. Move the "X" to the back; if a Form 944 SS is attached to a Form 944-X, keep them together. Move the "X" to the back. Sort as the applicable "original" .

3.10.72.13.12  (01-01-2010)
Form 945 –Annual Return of Withheld Federal Income Tax

  1. This is a calendar year return January 31.

  2. Sort 2009 revision returns separately from 2008 and prior revision returns.

  3. Sort non-remit forms into refund versus no refund.

  4. Pre-screen all non-remit Form 945 returns marked "Amended " ,"Revised" or "Corrected" , or Form 945-X and send to Accounts Management.

  5. If a Form 945 is attached to a Form 945-X, keep them together. Move the "X" to the back. Sort as a Form 945.

3.10.72.13.13  (01-01-2010)
Form 990 and Form 990EZ – Return of Organization Exempt from Income Tax (EO) (OSPC Only)

  1. Calendar year returns are due May 15th.

  2. Fiscal year returns are due 4 1/2 months after the tax period ending date.

  3. Sort Form 990 separate from Form 990-EZ.

  4. Sort IRC Section 501(c)(3) returns separately.

  5. Sort prior year 501(c)(3) returns separate from current year 501(c)(3) returns

  6. Beginning in Processing Year 2010, sort Tax Year 2008 and subsequent (other than current year) 501(c)(3) returns separate from Tax Year 2007 and prior 501(c)(3) returns.

  7. Sort IRC Section 527 returns separately

  8. Sort prior year Section 527 returns separate from current year Section 527 returns.

  9. Beginning in Processing Year 2010, sort Tax Year 2008 and subsequent (other than current year) 527 returns separate from Tax Year 2007 and prior Section 527 returns.

  10. If there is a pre-printed IRS label, sort according to the IRC section on the label instead of what the filer indicated in the "Tax Exempt Status" or "Organization Type" check box.

  11. Sort foreign addresses separately.

  12. Any obsolete Form 990-C received will be sorted with Form 1120-C returns.

3.10.72.13.13.1  (01-01-2010)
EP/EO Determination User Fee Application (CSPC Only)

  1. Applications will be sorted by Form 8717 and Form 8718 and Form 1023.

  2. Sort Remit and Non-Remit.

  3. Use either a Dual Date stamp, or a Postmark and Received Date stamp on all Applications. Leave the following forms on top of the package, followed by any Form 2848 or Form 8821, then the cover letter, then remaining documents. Staple any check received with the package in the bottom left corner of the first page. Following are samples of document order.- Form 1023, Form 1024, Form 5300, Form 5307, or Form 5310.

    Order of Documents Sample #1 Sample #2 Sample #3 Sample #4 Sample #5
    First Checklist Form 8718 Form 8717 Form 8717 Form 8717
    Second Form 1023 Form 1024 Form 5300 Form 5307 Form 5310
    Third Form 2848 Form 2848 Form 2848 Form 2848 Form 2848
    Fourth Form 8821 Cover Letter Cover Letter Cover Letter Cover Letter
    Fifth Cover Letter Remaining Documents Remaining Documents Remaining Documents Remaining Documents
    Next Remaining Documents        

  4. Remove all clips, dividers, blank sheets, notebooks, binders, metal prongs, tabs, etc. from applications. Put the dividers in the Candling buckets.

  5. Do not destroy any material attached to the application, such as pamphlets, books, literature, etc.

  6. If a Form SS-4 is attached and the EIN is missing, attach the Form SS-4 to the front of the application package. Edit "SS-4 enclosed" on the Application Identification Sheet.

  7. The Postmark Date and Return Address should be kept with the package. State the Postmark Date and Received Date at the bottom of the Application Identification Sheet, but do not stamp over the bar code.

  8. Date stamp all Acknowledgements and return to the filer, if self-addressed envelope with postage is attached. Otherwise, date stamp and keep with the package.

  9. Keep any Form 2848 or Form 8821 with the application.

3.10.72.13.14  (01-01-2010)
Form 990-PF – Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation (OSPC Only)

  1. Sort Non Remit into refund versus no refund.

  2. Calendar year returns are due May 15th. Fiscal year returns are due 4 1/2 months after the tax period ending date.

  3. Sort prior year returns separately.

  4. Sort foreign addresses separately.

3.10.72.13.15  (01-01-2010)
Form 990-T – Exempt Organization Business Income Tax Return (EO) (OSPC Only)

  1. Calendar year Form 990-T Corporation and 501(c)(3) trust returns are due May 15th. Fiscal year Form 990-T Corporation and 501(c)(3) trust returns are due 4 1/2 months after the tax period ending date.

  2. Calendar year Form 990-T 401(a) Trust returns are due April 15th. Fiscal year Form 990-T 401(a) Trust returns are due 3 1/2 months after the tax period ending date.

  3. Sort Non Remit into refund versus no refund.

  4. Sort 501(c)3 returns separately

  5. Sort 2006 Forms 990-T filed for the Telephone Tax Refund (TETR) separately from the current and other Prior Year Forms 990-T.

  6. Form 990-T for TETR can be identified by no dollar amounts in Part I - Part II. The first line entry will be Part IV. If Form 8913 attached, keep together.

3.10.72.13.16  (01-01-2010)
Form 1041, Form 1041N, Form 1041QFT, and Form 1041A – U.S. Income Tax for Estates & Trusts

  1. This is calendar year return due April 15th.

  2. Sort non-remit forms into refund versus no refund and by form type.

  3. Sort non-remit Forms 1041 by:

    • Current timely filed calendar year (current processing year minus 1) - with Schedule K-1 attached and Without Schedule K-1 attached

    • Prior year (Current processing year minus 2 or more) - with Schedule K-1 attached and Without Schedule K-1 attached

    • Current fiscal and delinquent calendar year (current processing year minus 1) - with Schedule K-1 attached and Without Schedule K-1 attached

    • Future Year (current processing year) - with Schedule K-1 attached and Without Schedule K-1 attached

  4. With remittance forms must be sorted as above following the deposit of remittance.

  5. If an Exempt Organization (EO) return (e.g. Form 990 series, Form 4720 or Form 5227) is attached, stamp Received Date on all forms. Detach the EO return and transship to OSPC.

  6. If a Form 1040 is attached to a Form 1041, always leave the Form 1040 attached. This includes returns that are marked Bankruptcy or have the bankruptcy box checked.

3.10.72.13.17  (01-01-2010)
Form 1042 – Annual Withholding Tax Return for U.S. Source Income of Foreign Persons (OSPC Only)

  1. This is an annual tax return due March 15.

  2. Sort Non-Remit returns into Refund versus No-Refund.

  3. Sort separately Domestic, Foreign, and U.S. Possession.

  4. If Form 1042-T/Form 1042-S, or Form 1042-S (without a Form 1042-T) are attached, keep the package together and process as a Form 1042. In this instance, sort as a Form 1042.


Prev Next

More Internal Revenue Manual