3.11.3  Individual Income Tax Returns (Cont. 2)

3.11.3.9 
Taxpayer Identification Information

3.11.3.9.2 
Caption Editing

3.11.3.9.2.2 
Name and Additional Information Lines

3.11.3.9.2.2.1  (01-01-2014)
Name Line, General

  1. Refer to the Name Control Job Aid 2303 or Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers.

  2. Circle the spouse's name when there are two names in the name line, the FS is "1" , "3" , or "4" , and there is only one signature. Perfect the name line to agree with the signature. (e.g., If John signs the return, delete Mary's name from the caption).

  3. Edit the spouse's name from the signature line when all of the following conditions apply:

    • Only one name appears in the first name line.

    • The FS is "2" .

    • Both taxpayers have signed the return.

  4. Do not delete "DECD" or "MINOR" from the name line:

    If the return indicates that Then
    At least one of the taxpayers is deceased, Refer to IRM 3.11.3.10 for complete editing instructions for decedent returns.
    The taxpayer is a minor child, Refer to IRM 3.11.3.7.1.3.2.

  5. Circle the brackets and prior last name when a taxpayer places it in brackets and shows a new last name. (See Figure 3.11.3–18.)

    Figure 3.11.3-18

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3.11.3.9.2.2.1.1  (01-01-2014)
Name Line on an IRS Label

  1. On an IRS label the taxpayer's name(s) will appear on one line.

  2. Correct the label to show the spouse's name in proper order if the taxpayer has added the spouse's name.

3.11.3.9.2.2.1.2  (01-01-2014)
Name Line on Other Than an IRS Label

  1. Without a label, the primary taxpayer's name will appear on the first line. The secondary taxpayer's name may appear on the first or second line.

  2. Do not separate the primary and secondary taxpayers' names onto different lines if they are both on the same line.

  3. On a return without an IRS label:

    If the taxpayer Then
    Uses a first initial but signs the return with a name,* Edit the name from the signature line to the name line. (See Figure 3.11.3–19.)
    Uses a middle initial and no first name,* Edit the name for the middle initial, if present. (See Figure 3.11.3–19.)
    Writes his/her last name first, Edit it to appear last. (See Figure 3.11.3–20.)
    Enters his/her last name twice and the FS is other than "2" , Circle either name and edit the last name to appear last, if necessary.
    *Do not verify the name line with the signature area unless one of these two conditions apply.

    Figure 3.11.3-19

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    Figure 3.11.3-20

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3.11.3.9.2.2.2  (01-01-2014)
Additional Information Line (AIL)

  1. On an IRS label, the Additional Information Line is on the second line and is located below the name line and above the mailing address.

  2. Without a label, the additional information line may be found anywhere in the caption area.

  3. Edit and underline the AIL in the following priority:

    1. A fiduciary or taxpayer's representative's name with a title (See IRM 3.11.3.7.1.3). Taxpayer's representatives include:
      • Administrator (ADM)
      • Commissioner (COMM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor/trix (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

    2. Name of a parent signing for their minor child.

  4. Underline the AIL (See Figure 3.11.3-21), when present in the caption area, in the following priority:

    1. A fiduciary or taxpayer representative name with a title (See IRM 3.11.3.7.1.3). Taxpayer representatives include:
      • Administrator (ADM)
      • Commissioner (COMM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor/trix (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

    2. Name of a parent signing for their minor child.

    3. Name of a Power of Attorney (POA) (See Figure 3.11.3-22)

    4. Name of a person not meeting the criteria listed in a, b, or c above (e.g., "in-care-of" information.)

    5. Street address, if not used as the mailing address.

      Note:

      NEVER underline or edit a P.O. Box as an AIL.

    6. Location other than a street address (e.g., bank, company name, university, or building name) not used as the mailing address (See Figure 3.11.3–23)

      Note:

      If a university and a building name are present, underline both as the AIL.

  5. Delete any condition or notation not found in (4) above.

    Figure 3.11.3-21

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    Figure 3.11.3-22

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    Figure 3.11.3-23

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3.11.3.9.2.3  (01-01-2014)
Mailing Address

  1. Edit military addresses to include organization, Postal Service Center, mobile unit designation, or name of ship.

  2. Underline or edit the name control when there is no street address (for example, 4116 Grant Ave) or P.O. Box present in the caption. (See Figures 3.11.3-17 and 3.11.3-24a).

    Exception:

    If Form 8822 is attached, follow the instructions at 3.11.3.9.2.3.1. If the address still cannot be perfected, underline the name control.

  3. When a street address in the caption is incomplete (such as a number without a street name or a street name without a number), and a complete address that matches the caption is found on an attachment, perfect the street address. If the street address cannot be perfected, underline or edit the name control. (See Figure 3.11.3-24b)

  4. Search the attachments when a complete street address is present in the caption, but the city/state/ZIP is missing or incomplete. If the street address in the caption matches one found on an attachment, use the attachment to perfect the city/state/ZIP. (See Figure 3.11.3-25.)

  5. If you are unable to perfect a missing or partial city/state/ZIP Code, underline the name control.

    Note:

    If only the ZIP Code is missing, refer to IRM 3.11.3.9.2.5.

  6. Refer to the international return instructions in IRM 3.11.3.7.2.10 when the return has a foreign address.

    Figure 3.11.3-24

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    Figure 3.11.3-25

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3.11.3.9.2.3.1  (01-01-2014)
Form 8822

  1. Edit the taxpayer's new address from Form 8822 if it is attached to the return. (See Figure 3.11.3–26.).

  2. If Form 8822 is attached to the return:

    If Then
    Box 1 is marked or no box is marked, Leave Form 8822 attached to the return.
    Box 2 is marked,
    1. Detach Form 8822.

    2. Route Form 8822 to Entity Control using Form 4227.

    3. Edit Action Trails on both the return and on Form 8822.

  3. Route loose Forms 8822 to Entity Control. Refer to the Attachment Guide in Exhibit 3.11.3–1 for more information.

    Figure 3.11.3-26

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3.11.3.9.2.3.2  (01-01-2014)
Multiple Addresses

  1. Use the permanent address when more than one address is indicated and one is permanent and one is temporary. (See Figure 3.11.3–27.)

    Exception:

    When the taxpayer identifies him/herself as a victim of a natural disaster and requests that a refund be sent to a temporary address, edit Action Code " 341" .

    Note:

    Refer temporary foreign addresses to your work leader for possible manual refund.

    Figure 3.11.3-27

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  2. Use the following chart to decide what action to take when multiple addresses are present and there is no indication of which address is permanent.

    If there are And Then
    Both a PO box and a street address present, An AIL is present, Circle the street address. (See Figure 3.11.3–28).
    Both a PO box and a street address present and

    The city/state/ZIP codes are the same,
    An AIL is not present,
    Underline the street address. (See Figure 3.11.3–29.)
    Both a PO box and a street address present and

    The city/state/ZIP code are different,
    An AIL is not present,
    Circle the street address, including the city/state/ZIP code.
    Two street addresses and

    The city/state/ZIP Codes are the same,
    An AIL is not present,
    Underline the first street address.
    Two street addresses and

    The city/state/ZIP Code are different,
    An AIL may or may not be present, Circle the first street address, including the city/state/ZIP Code.

    Figure 3.11.3-28

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    Figure 3.11.3-29

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  3. For addresses containing a rural route or route number with a box number, and a street address: (See Figure 3.11.3–30.)

    If a street number is Then
    Present, Underline the rural route or route number with a box number.
    Note:
    Never separate a rural route or route number with a box number.
    Not present, Underline the street address.

    Exception:

    Do not underline any part of the address when an AIL is already present.

    Figure 3.11.3-30

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  4. Underline any other address as the AIL if the street address is present with a notation of Private Mail Box or "PMB" . DO NOT separate the address from the PMB number. (See Figure 3.11.3–31.)

    Exception:

    Do not underline a P.O. Box as the AIL. The P.O. Box will always take precedence over the PMB when determining the correct address.

    Figure 3.11.3-31

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3.11.3.9.2.4  (01-01-2014)
City/State

  1. The city and the state must be present. If missing, search the return and other attachments.

    If the missing information is Then
    Found, Perfect the city/state line.

    Exception:

    Do not perfect city/state information if the street address is not present on the return.

    Not found, Underline or edit the name control.

  2. Do not abbreviate city names except those which have standard abbreviations. Examples include No. Hollywood or St. Louis. A list of the standard city abbreviations will be made available at local management's option.

  3. Use the standard abbreviations when editing the state. Refer to Exhibit 3.11.3–9 for a list of the standard state abbreviations.

  4. Rebatch as International and transship to AUSPC when conditions listed at IRM 3.11.3.7.2.10 are present.

3.11.3.9.2.5  (01-01-2014)
ZIP Code

  1. The ZIP code may be five or more digits. Take no action when there are more than five digits.

  2. Search attachments if the ZIP code is missing or incomplete and take one of the following actions:

    1. Perfect the ZIP code from the attachment(s) if a complete ZIP code is found for exactly the same address (including apartment number, if present). (See Figure 3.11.3–32.)

    2. Perfect the ZIP code using the chart in Exhibit 3.11.3–9 when a complete ZIP code is not found.

    Figure 3.11.3-32

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3.11.3.9.2.5.1  (01-01-2014)
APO/FPO/DPO Addresses

  1. Edit an APO, FPO, or DPO address so that "APO" , "FPO" , or "DPO" appears with the following (See Figure 3.11.3–34.):

    • The appropriate two-letter state code, and

    • The corresponding unique five-digit ZIP code

    Figure 3.11.3-33

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  2. Circle a city name or a foreign city or country if present, and edit the appropriate state/ZIP codes based on the table in paragraph (3) below.

  3. Edit the ZIP code from the table below that applies to the state code when the ZIP code is missing or incomplete.

    APO/FPO Address Conversion Chart
    Old Address New Address
    APO or FPO Miami, FL APO or FPO AA 34001
    APO or FPO New York, NY APO or FPO AE 09001
    APO or FPO San Francisco, CA APO or FPO AP 96201
    APO or FPO Seattle, WA APO or FPO AP 96201

3.11.3.10  (01-01-2014)
Decedent Returns

  1. Indications of a deceased taxpayer may include any of the following:

    1. Date of death present

    2. "Deceased" written on the top of Form 1040/A/EZ

    3. "Deceased" , "Filing as surviving spouse " , or similar notation in the signature area

    4. Death certificate, Form 1310, or other documentation is attached

    5. "DECD" on an IRS label

    6. "Estate of" is present

  2. Instructions in this subsection of the IRM include the following:

    • General editing procedures

    • Documentation requirements

    • Allowable short-period decedent return editing

    • Name line editing

    • Additional information line editing

    • Applicable Computer Condition Codes

3.11.3.10.1  (01-01-2014)
Decedent Return, General Procedures

  1. Edit the caption information from Form 1310. If Form 1310 is not present, edit caption information from the court certificate. (See Figure 3.11.3–34.) Edit the caption address before corresponding.

    Figure 3.11.3-34

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  2. Check the "Estate of" box on Form 6001 and do not edit the AIL when corresponding for documentary evidence. If an AIL is present, circle out the AIL before corresponding for the documentary evidence.

    Exception:

    If corresponding for information other than documentary evidence, edit the AIL. If an AIL cannot be determined, check the "Estate of " box on Form 6001.

  3. If a decedent return is missing a signature, the return must be mailed back for a signature via Form 3531. Edit "Estate of" in the caption area. Missing documentary evidence is not treated as an unsigned return. Do not use Form 3531 to mail back a signed decedent return missing documentary evidence.

  4. Decedent returns require a date of death. Correspond when the date of death cannot be determined through research.

  5. If a return is filed for a single deceased taxpayer-or two deceased taxpayers on a joint return-and the return covers a tax period after the one in which the taxpayer(s) died, Form 1041 must be filed:

    If Then
    It is an unnumbered return, Pull the return from the batch and route to R&C, Media Transport Unit for transshipment to a Business Master File (BMF) SPC*.
    It is a numbered return, Refer the return to your work leader.* The work leader will:
    1. Insert a replacement page with the following information:
    • DLN in the upper right margin
    • "Suspend AC640"
    • "Return transshipped to BMF SPC for conversion to Form 1041."
    2. Pull the return from the batch and route to Receipt and Control (R&C), Media Transport Unit for transshipment to a BMF SPC.

    Note:

    *Work leaders will review all returns to verify that conversion to Form 1041 is necessary before transshipment. Check signature line to verify that the taxpayer is deceased. If a surviving spouse's signature is present on the return or if the taxpayer has signed the return, do not transship to BMF SPC. Process as Form 1040.

  6. Take the following actions when a request for a prompt assessment or audit (e.g., "Section 6501(d)" noted) is present:

    1. Detach the request.

    2. Route the request to Examination using Form 4227.

    Note:

    Remember to edit Action Trails on the return and the request.

  7. If the FS is "1" , "4" , or "5" , the taxpayer is filing as a surviving spouse, and the decedent's date of death is within the tax period or the subsequent tax period, take the following actions:

    If there is And Then
    One name in the name line, FS box 1 or 4 is marked, Edit the FS as "2" and edit the spouse's name to the caption. Correspond, if the spouse's name cannot be found.
    One name in the name line, FS box 5 is marked, Correspond .*
    Two names are in the name line,   Edit the FS as "2" . (See Figure 3.11.3–35.)
    * The correspondence should inform the surviving spouse that a joint return can be filed for the year the taxpayer died. Also, inform the surviving spouse that FS "5" can be used for the two years following the year of the taxpayer's death, if the surviving spouse has a qualifying dependent.

    Figure 3.11.3-35

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3.11.3.10.2  (01-01-2014)
Documentary Evidence

  1. Accept any court papers naming the claimant as a court-appointed or court-certified personal representative for the estate of the deceased taxpayer. A will validated through the court is acceptable documentary evidence. Acceptable documentary evidence also includes a properly completed Form 1310. (See IRM 3.11.3.10.2(7)).

    Reminder:

    A will that has NOT been validated through a court is NOT acceptable as proof of appointment. A power of attorney (POA) is not valid after the death of the taxpayer.

  2. Do not require documentary evidence for the authority to sign the return on a:

    1. Balance due return

    2. Zero/even balance return

    3. Joint (FS "2" ) or Married Filing Separate (FS "3" ) return signed by the surviving spouse

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. Credit elect return when the taxpayer's date of death is after the tax year (on a joint return this applies to either taxpayer).

    6. Return signed by a representative of a bank or fiduciary institution.

  3. Unless one of the exceptions in (2) above applies, require documentary evidence for all decedent returns that meet any of the following conditions:

    1. Are uncomputed returns

    2. Have a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Have a credit elect of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (See Figure 3.11.3–36.)

    Exception:

    If the refund is barred due to the expiration of the statute of limitations, no documentary evidence is required.

    Figure 3.11.3-36
  4. Require documentary evidence on a joint return only in the following two situations, unless one of the conditions in (2) above applies:

    If Then
    Both taxpayers are deceased, Require documentary evidence for the person signing the return for at least one of the taxpayers.*
    See IRM 3.11.3.10.2 (2) for exceptions.
    Only one taxpayer died and the return has a single signature of someone other than the surviving spouse, Documentary evidence is required to support the authority to sign for BOTH the decedent and the surviving spouse. (i.e., fiduciary relationship or POA per IRM 3.11.3.7.1.3 and 3.11.3.7.1.3.3 ).
    *The signature name and the documentary evidence name must be the same person. Otherwise, correspond.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (See Figure 3.11.3–37.)

    Figure 3.11.3-37

  6. Correspond when the refund payee is a claimant other than a legal representative, and a completed Form 1310 is not present.

  7. Accept Form 1310 as documentary evidence when all of the following are present:

    1. A signature. Correspond when missing. See IRM 3.11.3.14.10 for signature requirements.

      Note:

      Do not correspond for a court certificate if there is an indication that the taxpayer has previously submitted one.

    2. Part II, questions 2a and 2b must be answered "No" . Correspond for a court certificate if either is answered "Yes" or is blank. (See Figure 3.11.3–38.)

      Note:

      Do not correspond for a court certificate if there is an indication that the taxpayer has previously submitted one.

    3. Part II, question 3 must be answered "Yes" unless a court certificate is attached. (See Figure 3.11.3–39.) Correspond when the question is answered "No" or is blank and a court certificate is not attached.

      Note:

      Do not correspond for a court certificate if there is an indication that the taxpayer has previously submitted one.

    Figure 3.11.3-38

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    Figure 3.11.3-39

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3.11.3.10.3  (01-01-2014)
Short Period Decedent Return

  1. If a single taxpayer-or two taxpayers on a joint return-died after the currently processed calendar year (2013), a short period return may be filed. In addition to regular editing, edit the following (See Figure 3.11.3–40):

    1. The date of death in YYMM format as the tax period.

      Note:

      Use the most recent date of death on a joint return when both taxpayers are deceased.

    2. CCC "Y" and an Action Trail

    3. CCC "A" for a joint return or CCC "F" for a single taxpayer

    4. Received date or today's date if no date stamp is present

    5. CCC "R" if the return is received more than 3 months and 15 days from the end of the short period.

      Exception:

      Do not edit CCC "R" if CCC "Z" criteria apply.

  2. If on a joint return only one taxpayer died after the currently processed calendar year, a return for the surviving spouse must be filed for the entire year. If a short period return was filed instead, take one of the following actions:

    1. If the return is unnumbered, correspond, informing the taxpayer that a return for the entire year must be filed.

    2. If the return is numbered, edit Action Code " 480" and do not correspond.

  3. Only Form 1040 may be filed as a short-period return. Convert Forms 1040A/EZ to Form 1040. See IRM 3.11.3.62 for instructions on converting returns.

    Figure 3.11.3-40

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3.11.3.10.4  (01-01-2014)
Name Line on a Decedent Return

  1. Use these name line instructions in addition to the regular caption editing procedures in IRM 3.11.3.9.2.

  2. If there is a notation of "deceased" , "decedent" , "Decd" , "Dec" , or "Dec'd" in the caption area, arrow or edit the notation to indicate the deceased taxpayer. (See Figure 3.11.3–41.)

    If And Then
    Other than joint return,   Arrow or edit the notation to after the taxpayer's last name (behind any suffix)*
    Joint Return, Both taxpayers have same last name, Arrow or edit the notation to after the deceased taxpayer's first name (and middle initial, if present).
    Joint Return, Taxpayers have different last names, Arrow or edit the notation to after the deceased taxpayer's last name (behind any suffix.)* (See Figure 3.11.3–41.)
    * If the deceased taxpayer has a hyphenated last name, edit "DECD" after the second surname.

    Figure 3.11.3-41

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  3. If there is not a notation of "deceased" , "decedent" , "dec" , "Decd" , or "Dec'd" in the caption area, edit "DECD" as follows:

    If And Then
    Other than joint return,   Edit "DECD" after the taxpayer's last name (behind any suffix) (See Figure 3.11.3–42.)*
    Joint Return, Both taxpayers have same last name, Edit "DECD" after the deceased taxpayer's first name (and middle initial, if present).
    Joint Return, Taxpayers have different last names, Edit "DECD" after the deceased taxpayer's last name (behind any suffix.) (See Figure 3.11.3–43.)*
    * If the deceased taxpayer has a hyphenated last name, edit "DECD" after the second surname.

  4. On a joint return, when one taxpayer died prior to the tax period of the return, delete the following from the caption:

    1. The deceased taxpayer's name and TIN

    2. "DECD" if it is included in the caption

  5. If deleting the primary taxpayer from the caption, edit the secondary taxpayer as the new primary, and refer the return to your work leader for input of a TC "540" . (See Figure 3.11.3–44.)

    Figure 3.11.3-42

    Figure 3.11.3-43

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    Figure 3.11.3-44

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3.11.3.10.5  (01-01-2014)
Additional Information Line On A Decedent Return

  1. An AIL is required on all refund and uncomputed returns. On all other returns, edit the AIL if available. (See Figure 3.11.3–45.) Correspond when an AIL is required and you are not able to determine the AIL from the signature line or attachments.

    Note:

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

  2. Edit the name of the surviving spouse as the AIL on a FS2 or FS3 return. Include the representative's name and title on the AIL when a court-appointed or personal representative's signature is on the return.

    Exception:

    Do not include a title on the AIL when the surviving spouse is also the court-appointed personal representative.

  3. Edit the title of the representative from these sources in the following priority:

    1. Court certificate

    2. Form 1310

    3. Signature area of the return

    Note:

    Edit only the first representative's name and title on the AIL when more than one is present.

  4. Use the following abbreviations for these titles (See Figure 3.11.3–45.):

    • Administrator-ADM

    • Commissioner-COMM

    • Conservator-CONS

    • Custodian-CUST

    • Executor(trix)-EXEC

    • Guardian-GDN

    • Personal Representative-PER REP

    • Trustee-TR

    Note:

    Edit only the first representative's name and title on the AIL when more than one is present.

  5. Delete personal relationship suffixes (e.g., "surviving spouse" , "mother" , "father" , "daughter" , "son" , etc.) from the AIL.

    Figure 3.11.3-45

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3.11.3.10.6  (01-01-2014)
Computer Condition Codes for Decedent Returns

  1. Edit CCC "Q" and transship to CSPC when Form 8939 is attached to a final Form 1040.

    Note:

    Take no action when Form 8939 is unsigned.

  2. Edit one of the following CCCs on all returns where the taxpayer(s) died during the tax period of the return:

    1. Edit CCC "F" if a single taxpayer, or only the primary taxpayer on a joint return, is deceased. (See Figure 3.11.3–46.)

    2. Edit CCC "9" if only the secondary taxpayer died. (See Figure 3.11.3–46.)

    3. Edit CCC "A" if both taxpayers died during the tax period. (See Figure 3.11.3–46.)

    Note:

    Do not edit CCCs "F" , "9" or "A" when the taxpayer died after the end of the tax period. (See Figure 3.11.3-47.)

  3. Edit one of the following CCCs on a refund or uncomputed return:

    1. Edit CCC "W" if the payee is the surviving spouse alone, or a payee other than a legal representative or place of business. (See Figure 3.11.3–47.)

    2. Edit CCC "L" if the payee is a legal representative (i.e., court-appointed), place of business, or a surviving spouse and a legal representative or place of business (See Figure 3.11.3–47.)

      Note:

      Do not edit CCC "L" or CCC "W" if corresponding.

    Figure 3.11.3-46

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

    Figure 3.11.3-47

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

3.11.3.11  (01-01-2014)
Presidential Election Campaign Fund (PECF)

  1. (Reserved.)

3.11.3.12  (01-01-2014)
Filing Status (FS)

  1. The filing status (FS) is used to determine the taxpayer's standard deduction amount, eligibility for the earned income tax credit, and to compute his/her tax.

  2. The instructions in this manual subsection are for determining and editing the correct FS.

3.11.3.12.1  (01-01-2014)
Filing Status Editing, General

  1. Edit the FS by either checking the appropriate box or by editing the FS Code to the left of the Filing Status 3 box.

  2. The meaning of the Filing Status Codes are:

    • FS "1" -single taxpayer

    • FS "2" -married taxpayers filing joint return

    • FS "3" -married taxpayer filing a separate return (spouse exemption is not claimed)

    • FS "4" -head of household

    • FS "5" -widow(er) with a dependent child

    • FS "6" -married taxpayer filing a separate return (spouse exemption is claimed)

    • FS "7" -–head of household (dependent is not claimed)

3.11.3.12.2  (01-01-2014)
Determining the Filing Status

  1. On an uncomputed return, when all FS boxes are blank or multiple boxes are marked:

    1. Edit FS "2" when there are two names in the caption and two signatures are present. Circle all boxes except FS "2" when multiple boxes are marked.

    2. Take no action for all other cases.

    Note:

    See IRM 3.11.3.3.11 for information on identifying uncomputed returns. See IRM 3.11.3.13.2 for further information on exemption editing.

  2. On a computed return, when the taxpayer does not mark a box:

    If there And Then
    Is one name in the caption and one signature A spouse's exemption is claimed on line 6b or 6c, Edit FS "6" and delete the spouse's exemption from positions 2 - 7.
    An S-TIN or spouse's name is entered on line 3 or an S-TIN is present in the caption area. Check FS box 3 unless FS 6 criteria (above) applies.
    Neither of the above apply, Check FS box 1.
    Are two names in the caption and two signatures,   Check FS box 2.
    Is any other condition,   Take no action.

  3. On a computed return when more than one FS box is marked, circle all boxes but the largest number unless both FS boxes 1 and 4 are marked. (See Figure 3.11.3–48.)

    If FS boxes 1 and 4 are both marked and Then
    A dependent with a TIN or an indication of a dependent who was born during the tax period and died during the same or next consecutive tax period is claimed in exemption positions 2, 4, 5, or 6. (See IRM 3.11.3.13). Circle FS box 1. (See Figure 3.11.3-48).
    A name or "see attached" is noted on line 4 or Schedule EIC with qualifying child (see IRM 3.11.3.40.2) is attached,
    AND
    no exemptions are entered or edited in exemption positions 2, 4, 5, or 6
    Circle FS boxes 1 and 4, and edit FS "7" .
    None of the conditions listed above are present, Circle FS box 4.

    Note:

    Refer to the FS "4" instructions (IRM 3.11.3.12.2.4) if a spouse's exemption is claimed on line 6b or 6c.

    Figure 3.11.3-48

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

3.11.3.12.2.1  (01-01-2014)
FS Box 1 Marked

  1. When the taxpayer marks FS box 1 only:

    If there is one name in the caption and one signature and Then
    A spouse's exemption is claimed on line 6b or 6c, 1. Circle FS box 1 and edit FS "6" .

    2. Delete the spouse's exemption from positions 2–7 and edit an "X" to the left of the spouse's name on line 6c, if present.
    A spouse's date of death is within the tax period of the return, 1. Circle FS box 1 and check FS box 2.

    2. Edit the spouse's name to the caption or correspond if missing.
    Note: Also see the decedent return editing information in IRM 3.11.3.10.
    None of the conditions above apply, Take no action.

3.11.3.12.2.2  (01-01-2014)
FS Box 2 Marked

  1. When the taxpayer marks FS box 2 only:

    If there: And Then
    Is only one signature and a spouse's exemption is claimed on line 6b or 6c, There is no S–TIN present, Correspond for the spouse's missing signature and TIN.
    Are two signatures and a spouse's exemption is claimed on line 6c, There is no S–TIN present, 1. Edit spouse to the caption.
    2. Edit an "X" to the left of spouse's name on line 6c.*
    Are two names in the caption and the spouse's date of death is 2011 or 2012, An exemption is present in positions 2, 5, or 6, 1. Circle FS box 2 and check FS box 5.
    2. Circle the deceased spouse's name and TIN in the caption.
    (See Figure 3.11.3–49.)
    Are no conditions above that apply,   Take no action.
    * Do not code the spouse as an exemption and delete the spouse's exemption when claimed in exemption positions 2 through 7.

    Figure 3.11.3-49

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

3.11.3.12.2.3  (01-01-2014)
FS Box 3 Marked

  1. When the taxpayer marks FS box 3 only and spouse's exemption is claimed on line 6b or 6c:

    If there And Then
    Is only one name in the caption, The spouse has no income, 1. Circle FS box 3 and edit FS "6" .
    2. Edit an "X" to the left of the spouse's name if entered on line 6c.*(See Figure 3.11.3–50.)
    Is only one name in the caption, The spouse has income, Correspond for the correct FS.
    Are two names in the caption, two signatures,   1. Circle FS box 3 and check FS box 2.
    2. Edit an "X" to the left of the spouse's name if entered on line 6c.*
    *Do not code the spouse as an exemption. Delete the spouse's exemption when claimed in exemption positions 2 through 7.

    Figure 3.11.3-50

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

3.11.3.12.2.4  (01-01-2014)
FS Box 4 Marked

  1. When the taxpayer marks FS box 4 only:

    If Then
    A spouse's exemption is claimed on line 6b or 6c and
    no other dependents are listed or claimed on line 6c,
    1. Circle FS box 4 and edit FS "6" .
    2. Edit an "X" to the left of the spouse's name if entered on line 6c and delete the spouse's name if in the caption. * (See Figure 3.11.3–51.)
    A spouse's exemption is claimed on line 6b or 6c and
    other dependents are listed or claimed on line 6c,
    Edit an "X" to the left of the spouse's name if entered on line 6c.*
    • Position 2, 4, 5 or 6 does NOT contain a dependent with a TIN or a dependent who was born during the tax period and died during the same or next consecutive tax period, and
    No name or "see attached" noted on line 4 and
    No Schedule EIC with a qualifying child attached,
    Circle FS box 4 and check FS box 1.
    (See Figure 3.11.3–52.)
    • A name or "see attached" is notated on line 4 or Schedule EIC with qualifying child is attached and
    • No exemptions are entered/edited in positions 2, 4, 5, or 6
    Circle FS box 4 and edit FS "7." (See Figure 3.11.3–53.)
    A spouse's date of death is within the tax period of the return or the subsequent tax period, 1. Circle FS box 4 and check FS box 2.
    2. Edit the spouse's name to the caption or correspond if missing.

    Note:

    See the decedent return editing information in IRM 3.11.3.10.

    * Do not code the spouse as an exemption. Delete the spouse's exemption when claimed in exemption positions 2 through 7.

    Figure 3.11.3-51

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

    Figure 3.11.3-52

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

    Figure 3.11.3-53

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3.11.3.12.2.5  (01-01-2014)
FS Box 5 Marked

  1. Refer to the decedent editing instructions in IRM 3.11.3.10 if the spouse died during the tax period of the return.

  2. When the taxpayer marks FS box 5 only:

    If the And Then
    Spouse's date of death is NOT 2011 or 2012, There is at least one exemption in positions 2, 4, 5, or 6 with a TIN or a dependent who was born during the tax period and died during the same or next consecutive tax period or a qualifying child on Schedule EIC, Circle FS 5 and check FS box 4. (See Figure 3.11.3–54.)
    Spouse's date of death is NOT 2011 or 2012, There are no exemptions in positions 2, 4, 5, or 6 with a TIN nor a dependent who was born during the tax period and died during the same or next consecutive tax period, nor a qualifying child on Schedule EIC, Circle FS 5 and check FS box 1.
    Spouse's date of death is not present,   Take no action.

    Figure 3.11.3-54

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

3.11.3.13  (01-01-2014)
Exemptions

  1. There are two types of exemptions:

    • Personal exemptions

    • Dependency exemptions

  2. A taxpayer is allowed one personal exemption for him/herself (two on a joint return), as long as s/he cannot be claimed as a dependent by another taxpayer.

  3. Taxpayers are also allowed one dependency exemption for each person that they can claim as a dependent.

  4. The exemption instructions in this subsection of the manual are for:

    • Taxpayer claimed as a dependent by another person

    • General information about exemption coding

    • Coding each of the exemption positions

3.11.3.13.1  (01-01-2014)
Dependency Status Indicator (DSI)

  1. Edit the DSI on Forms 1040/A in the blank area, directly above line 6c, column (4) or to the right of the text.

  2. Edit a DSI Code of "1" when the taxpayer indicates on the return or attachment that s/he is claimed on another person's return.

  3. Take one of the following actions for editing the DSI (See Figure 3.11.3-55.):

    If And Then
    The "Yourself" box on line 6a is not marked, FS is 1, 3, 4, 5 or 7, Exemption position 1 is "0" , dash or blank and the "total number of exemptions claimed" box on line 6d is "0" , dash or blank, Edit DSI "1" .
    The "Yourself" box on line 6a is not marked, FS is 2 or 6, Exemption position 1 is "1," Edit DSI "1" .
    The "Yourself" box on line 6a is marked, FS is 2 or 6, Exemption position 1 is "1" , and the Spouse box on line 6b is not marked, Edit DSI "1" .

    Reminder:

    When applicable, the DSI is still required if RPC "L" has been edited.

    Figure 3.11.3-55

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3.11.3.13.2  (04-22-2013)
Exemption Coding, General Information

  1. Exemptions are entered by the taxpayer on Forms 1040/A on the four lines and one box located directly to the right of line 6c in the exemption area of the return.

  2. There are seven exemption positions. The seven positions are used to identify different relationships between the exemption and the taxpayer. (See Figure 3.11.3–56.)

  3. Exemption positions 1, 2, and 3 are located on the first, second, and third lines.

    • Exemption position 1-first line-"Yourself and Spouse"

    • Exemption position 2-second line-"Children who lived with you"

    • Exemption position 3-third line-"Children who did not live with you due to divorce or separation"

  4. Additional exemptions-either entered by the taxpayer on the fourth line or listed on line 6c-must be edited when the taxpayer is claiming exemptions other than for him/herself, spouse, or his/her children. These exemptions are edited in the right margin. Begin editing to the right of the second line (the line labeled "lived with you" ). The additional positions are as follows:

    • Exemption position 4-Parents, grandparents

    • Exemption position 5-Qualifying children

    • Exemption position 6-Other dependents

    • Exemption position 7-Overflow from position 2

    Figure 3.11.3-56

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

  5. "X" the taxpayer's entry and edit all exemptions to the correct position when the taxpayer has entered totals on the second or third line of the exemption area.

  6. Do not code an exemption when the taxpayer states that the exemption is not being claimed. Edit an "X" to the left of the unclaimed dependent's name on line 6c. (See Figure 3.11.3–57.)

    Figure 3.11.3-57

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

  7. Edit any exemption claimed by the taxpayer as if it were claimed on the fourth line when the second, third, and fourth lines are blank.

  8. If a fractional exemption is found, "X " it. Edit CCC "Y" .

  9. Edit to position 6 any dependent-other than a parent-when there is an indication on the return or attachments that the dependent did not live in the United States (See Figure 3.11.3–58.) . Indications that the dependent did not live in the U.S. include, but are not limited to, the following notations:

    • "CN" or "Canada"

    • "F" for foreign dependent

    • "MX" or "Mexico"

    Figure 3.11.3-58

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

  10. Take the following actions for line 6c:

    If on line 6c Then
    The taxpayer indicates a relationship of "self" , "me" , "spouse" , "husband" , "wife" , or "common law spouse" , 1. Delete the exemption from the exemption position.
    2. Edit an "X" to the left of the name on line 6c.*
    The taxpayer claims children with ITINs on line 6c (or a continuation-type attachment) and the correlating box(es) for Child Tax Credit is/are marked for all or some of the ITIN children. Schedule 8812 must be attached. Correspond if missing.

    Note:

    See IRM 3.11.3.14.5.5.

    Note:

    Only correspond if the credit is being claimed on lines 51 or 65, Form 1040.

    The taxpayer has entered any dependents in an incorrect position, Edit the exemptions to the correct positions.
    EXCEPTION: Do not move a child from exemption position 3 to position 2.
    NOTE: It is not necessary to "X" any entry on line 4 because it is not transcribed.
    The taxpayer states that a listed dependent is not being claimed as an exemption, 1. Do not code as an exemption.
    2. Edit an "X" to the left of the name on line 6c.
    The number of names listed by the taxpayer on the return or an attached statement is not equal to the number of exemptions claimed on the exemption lines, Edit exemption positions based on dependent information on line 6c.
    (See Figure 3.11.3–59.)

    Note:

    * Do not code the spouse as an exemption. Delete the spouse's exemption when claimed in exemption position 2 through 7.

  11. Do not use Schedule EIC to determine exemption positions.

    Figure 3.11.3-59
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.13.2.1  (01-01-2014)
Exemption Relationships

  1. Much of exemption coding is based upon the relationship of the dependent to the taxpayer(s).

  2. The relationships of parent and grandparent are not changed by the suffix "in-law" or the prefix "step " .

  3. While the relationship of child is not changed by the addition of the prefix "step" it is changed by addition of the suffix "in-law" .

    1. A stepchild is treated as a child and is entered in either position 2 or position 3, depending on if the taxpayer indicates the child lived with them or did not live with them.

    2. Exemptions in Position 5 are labeled "Qualifying Children" because they may "qualify" the taxpayer for EIC or the Child Tax Credit.

    3. A son-in-law or daughter-in-law is treated as an "other" relationship and is edited in position 6.

3.11.3.13.2.1.1  (01-01-2014)
Blank Relationship

  1. Edit exemptions to position 6 when the relationship of the dependent is not listed on line 6c. (See Figure 3.11.3-63).

    Exception:

    Edit an "X" to the left of the dependent's name AND do not code the exemption if the relationship on line 6c is blank and there is a statement on line 6c that the exemption is not being claimed.

    Note:

    Do not move a dependent from exemption position 2 or 3 when the relationship is blank unless the dependent did not live in the United States.

3.11.3.13.2.1.2  (01-01-2014)
Determining the Exemption's Relationship

  1. The child relationship (position 2 or 3) includes notations of the following:

    • "Child" , "son" , or "daughter"

    • "Adopted child" , "adopted son" , or "adopted daughter"

    • "Grandchild" , "grandson" , or "granddaughter"

    • "Great-grandchild" , "great-great-grandchild " , "great-grandson" , "great-great-grandson " , "great-granddaughter" , "great-great-granddaughter "

    • "Stepchild" , "stepson" , or "stepdaughter"

  2. The parent relationship (position 4) includes notations of the following:

    • "Parent" , "father" , or "mother"

    • "Stepparent" , "stepfather" , or "stepmother"

    • "Parent-in-law" , "father-in-law" , or "mother-in-law"

    • "Grandparent" , "grandfather" , or "grandmother"

    • "Great-grandparent" , "great-great-grandparent " , "great-grandfather" , "great-great-grandfather " , "great-grandmother" , "great-great-grandmother "

  3. The "qualifying child" relationship (position 5) includes notations of the following:

    • "Foster child" , "foster son" , or "foster daughter"

    • "Ward"

    • any child placed by an authorized agency

    • "Brother" , "sister" , "brother-in-law" , "sister-in-law" , "step-brother" , "step-sister" , "half brother" or "half sister"

    • "Nephew" or "niece"

  4. Include in "other" relationships (position 6) any dependent not identified in (1), (2) or (3) above. "Other" relationships include the following:

    • "Uncle" or "aunt"

    • "Son-in-law" or "daughter-in-law"

    • "Friend" , "boyfriend" , or "girlfriend"

    • All dependents who did not live in the US except for parent relationships

    • "Cousin"

    • "Godchild" , "godson" , "goddaughter"

    • "boy/girlfriend's child" , "boy/girlfriend's son" , "boy/girlfriend's daughter"

    Note:

    This list is not all inclusive.

3.11.3.13.2.2  (01-01-2014)
Exemption Positions

  1. Edit a "0" (zero) in any prior position for which an exemption has not been coded when editing exemption positions 5 through 7. Do not edit trailing zeros. (See Figure 3.11.3–60.)

    Exception:

    Do not edit a zero in positions 2 or 3.

    Figure 3.11.3-60

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

  2. If the number of exemptions belonging in positions 3 through 7 exceeds nine, edit "9" in the position.

  3. Look for misplaced exemptions. Move dependent exemptions to the correct position.

    Exception:

    Do not move a child from exemption position 3 to position 2.

3.11.3.13.2.2.1  (01-01-2014)
Exemption Position 1-"Yourself and Spouse" (Not Transcribed)

  1. This exemption position is generated by the computer based on the taxpayer's filing status. No editing is required.

  2. See IRM 3.11.3.12.2 for instructions about the filing status and the exemption when an exemption is claimed for a spouse on:

    • Line 6c when the FS is 2

    • Line 6b when the FS is other than 2

3.11.3.13.2.2.2  (01-01-2014)
Exemption Position 2-"Number of Your Children on Line 6c Who Lived With You"

  1. Code exemption position 2 on the second line ("Children who lived with you" ) in the exemption area.

  2. Up to nine exemptions can be edited in position 2. If more than nine exemptions are claimed:

    1. Edit "9" in exemption position 2.

    2. Edit the excess exemptions to position 7.

  3. Edit to position 2 all dependents with child relationship. (See Figure 3.11.3–61.)

    Exception:

    Do not move a child from exemption position 3 to position 2.

  4. Do not move a child from exemption position 2 to position 3. Move misplaced exemptions from position 2 to the correct position.

    Figure 3.11.3-61

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3.11.3.13.2.2.3  (01-01-2014)
Exemption Position 3-Number of Your Children on Line 6c Who Didn't Live With You Due to Divorce or Separation

  1. Exemption position 3 is coded on the third line ("Children … who did not live with you" ) in the exemption area.

  2. Look for misplaced exemptions in position 3.

    If on the third line the taxpayer includes his/her Then
    Parent-including those who did not live in the United States Move the exemption to position 4.
    Qualifying child, Move the exemption to position 5.
    Foreign or other dependent, Move the exemption to position 6.

    Note:

    Do not move a child from exemption position 3 to position 2. See IRM 3.11.3.13.2.1.2 for child exemption relationships.

  3. If an entry is present in exemption position 3, Form 8332, Form 2120 or copy of divorce decree must be present. If not present, "X" exemption position 3. Correspond unless rejected ITIN condition is present.

    Note:

    Form 8332 or Form 2120 must show entries. If Form 8332 or Form 2120 is blank, correspond.

  4. Edit Special Processing Code "A" when Form 8332 (with entries) is attached to return that has an entry in exemption position 3. (See Figure 3.11.3-62).

    Figure 3.11.3-62

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3.11.3.13.2.2.4  (01-01-2014)
Exemption Position 4-Parents

  1. Exemption position 4 is coded in the margin to the right of the "lived with you" line.

  2. Edit to this position any dependent listed with a parent relationship (See Figure 3.11.3–63.)

    Note:

    This includes parent exemptions even when there is an indication that the dependent did not live in the United States.

    Figure 3.11.3-63

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3.11.3.13.2.2.5  (01-01-2014)
Exemption Position 5-Qualifying Children

  1. Code exemption position 5 directly under exemption position 4.

  2. Edit to exemption position 5 any "qualifying child." (See Figure 3.11.3–64).

    Note:

    Do not use Schedule EIC or column (4), line 6c, to determine these conditions.

    Figure 3.11.3-64

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3.11.3.13.2.2.6  (01-01-2014)
Exemption Position 6-Other Dependents

  1. Code exemption position 6 directly under exemption position 5.

  2. Edit exemptions with other relationships to exemption position 6. (See Figure 3.11.3–65.)

    Figure 3.11.3-65

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3.11.3.13.2.2.7  (01-01-2014)
Exemption Position 7-Overflow Exemption Position

  1. Code exemption position 7 directly under exemption position 6.

  2. Edit the excess exemptions from exemption position 2 to position 7. When the number of exemptions in position 2 is more than nine:

    1. Edit "9" to exemption position 2.

    2. Edit the number of exemptions greater than nine to position 7. (See Figure 3.11.3–66.)

    Figure 3.11.3-66

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3.11.3.13.3  (01-01-2014)
Dependent's Name Control and TIN

  1. For Forms 1040/A, up to four dependents' name controls and TINs can be transcribed.

3.11.3.13.3.1  (01-01-2014)
Dependent's TIN

  1. Every dependent edited as an exemption must have a TIN. Search attachments-including Schedule EIC and Form 2441-for any dependent exemption TIN not listed on line 6c.

    Note:

    If a Form W-7A is attached, see IRM 3.11.3.13.3.1.1.

  2. If the missing TIN is found, and:

    If four TINs are Then
    Already listed, "X" the name of the dependent(s) without a listed TIN.
    Not already listed, Edit up to four TINs to line 6c. (See Figure 3.11.3–67.)

    Figure 3.11.3-67

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

  3. When the missing TIN is not found on the return or attachments, take one of the following actions:

    If the taxpayer And Then
    Provides no TIN, Less than four TINs are present for other dependents, "X" the dependent's name on line 6c. (See Figure 3.11.3–68.)
    Provides no TIN, At least four TINs are present for other dependents, "X" exemption positions 2–7. (See Figure 3.11.3-69)

    Note:

    Also "X" the dependent's name if present on line 6c.

    Notes "Died" , (child born during the tax period and died during the same or next consecutive tax period), Birth or death certificate or copies of hospital medical record(s) are not attached, Correspond for the missing birth certificate.

  4. Correspond for missing TINs of all dependents when corresponding for other missing return items.

    Exception:

    Do not correspond for a missing dependent TIN when there is an indication the dependent was born during the tax period and died during the same or next consecutive tax period. Do not correspond for a missing dependent TIN when the taxpayer has notated "Amish" , "Mennonite" , "Form 4029" , or if Form 4029 is attached. Do not correspond for a missing dependent TIN when there is an indication of "ITIN Rejected" .

    Figure 3.11.3-68

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    Figure 3.11.3-69

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3.11.3.13.3.1.1  (01-01-2014)
Adoption TIN

  1. A taxpayer who does not know the TIN of the child s/he is adopting may still claim the exemption for a dependent by obtaining an adoption taxpayer identification number (ATIN). The ATIN is a temporary number assigned by the IRS for tax purposes only. ATINs appear in the following format: 9XX-93-XXXX.

  2. ATINs are obtained by filing Form W–7A. Form W–7A is processed at the AUSPC only. When Form W–7A is attached to the return, verify that the child listed on the Form W-7A is being claimed as a dependent on the return.

    1. If the child is listed as a dependent in Exemption Position 2 and already has an ATIN, "X" the photocopy of the Form W-7A and continue processing the return.

    2. If the child is listed as a dependent and the TIN is missing, or the child is not claimed as a dependent, or a different child is present on the Form W-7A:
      1. Detach the Form W-7A and related documentation. Edit an action trail in the lower left margin of page 1 and route to AUSPC with a Form 3210 using the address in paragraph (4) below.
      2. Use Form 3696-A to generate Letter 86C. Use paragraphs A, E, Q, X, f, and r.

      Note:

      Documentation attached to the Form W-7A should be at least one of the following:
      • Placement agreement between the parent(s) and the agency.
      • Document signed by the hospital authorizing the release of a newborn.
      • Court Order ordering or approving the placement of a child for legal adoption.
      • Affidavit signed by the adoption attorney or government official who placed the child with the parent(s) for legal adoption.


      3. Continue processing the return without a TIN. Forward Forms W-7A missing required documentation to AUSPC.
      4. Mail all Forms W-7A to: Internal Revenue Service, 3651 S. IH 35, Austin, TX 78741-7855.
      5. AUSPC ONLY: Do not detach Form W-7A from the return. Follow local routing procedures. Do NOT send Letter 86C. When the ATIN unit sends the return back through processing after the ATIN has been assigned, they will edit, for example, "02 RPC 05-14-2014" in the left side margin for the date the ATIN was assigned on refund returns only. Edit this date on the Edit Sheet, if current date is after April 15.

3.11.3.13.3.2  (01-01-2014)
Dependent's Name Control

  1. The name control(s) must be present for the first four dependents with TINs listed on line 6c. If missing, edit the name control(s) to the dependent's name area. Determine the missing name control(s) in the following priority:

    1. From Schedule EIC or other supporting attachments. (See Figure 3.11.3–70.)

      Note:

      If editing from attachments and the taxpayer has indicated dependent children are eligible for the Child Tax Credit, ensure the correlating checkboxes are marked on line 6c, column (4).

    2. From the primary taxpayer's name control. (See Figure 3.11.3– 71.)

    Figure 3.11.3-70

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

    Figure 3.11.3-71

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

3.11.3.14  (01-01-2014)
Form 1040

  1. The instructions provided in this subsection of the manual are for editing pages 1 and 2 of the Form 1040. These instructions include:

    • General editing procedures

    • Income (lines 7 through 22)

    • Adjustments to income (lines 23 through 36) adjusted gross income (line 37)

    • Tax computation (lines 38 through 46)

    • Credits (lines 47 through 55)

    • Other taxes (lines 56 through 60)

    • Total tax (line 61)

    • Payments (lines 62 through 72)

    • Refund or amount owed (lines 73 through 76)

    • Estimated Tax Penalty (line 77)

    • Third Party Designee

    • Signature

    • Preparer information

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

3.11.3.14.1  (01-01-2014)
Form 1040, General Editing Procedures

  1. Edit RPC "L" if there are no significant T–line entries present or edited from attachments on lines 7 through 77.

    Reminder:

    When applicable, the DSI is required even if RPC "L" is edited.

  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 or 2. (See Figure 3.11.3–72.)

    Note:

    Do not edit RPC "V" on computer-generated returns when there is an indication the return was prepared by Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) (e.g., the presence of an "S" within the P-TIN field). See IRM 3.11.3.14.12.2.

    Figure 3.11.3-72

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

  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 3.11.3.7.1.1
    Examination case 3.11.3.7.1.2
    Fiduciary Relationships (Minor Child and POA) 3.11.3.7.1.3
    Frivolous Filer / Non-Filer Returns 3.11.3.7.1.4
    Hardship 3.11.3.7.1.5
    Killed in Terrorist Action (KITA) 3.11.3.7.1.6
    National Disaster / Emergency Relief Program 3.11.3.7.1.7
    Refund Schemes 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 System (CIS)
    Combined Tax Liabilities
    Community Property
    Injured Spouse
    Innocent Spouse
    International
    Joint Committee
    Misblocked
    Misfiled
    Reinput
    Secured by Collections
    Short Period
    Substitute for a return
    52–53 Week
    Blind Trust

    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
    3.11.3.7.2.19
  5. Refer to the decedent return instructions in IRM 3.11.3.10 when any of the following are present:

    • "Deceased" is written on the return

    • A date of death is present 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

    • "Estate of" is present in the caption.

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

3.11.3.14.2  (01-01-2014)
Income-Lines 7 Through 22

  1. Edit amounts on lines 7 through 22 in dollars only.

3.11.3.14.2.1  (01-24-2012)
Line 7-Wages

  1. Use the table below for editing line 7.

    EDITING LINE 7, FORM 1040
    CONDITION on Line 7 Action
    Entry on line 7, no Form W-2 attached. None. Form W-2 is not required for line 7. (May be required as support for earned income when EIC is claimed.) See IRM 3.11.3.14.7.3.
    Line 7 is blank. Edit amounts from Wages, tips and other compensation box on Forms W-2.

    Exception:

    Do NOT edit to line 7 if Form W-2 income is for a minister, insurance salesman, or statutory employee and the income is reported elsewhere on the return.

    Amount deducted from line 7. If the same adjustment amount is also deducted on lines 23 - 36, adjust line 7 to include the amount.
    Self Employment Income (See Exhibit 3.11.3-10 for an extensive listing of types of self-employment.)
    1. Subtract from line 7 and add to line 21.

    2. If amount is $434 or more and Schedule SE is not attached, also edit RPC "N" .

    3. If Form 1099-MISC is attached with or without a notation and an amount is present in box 7, Form 1099-MISC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present.

      Note:

      Do not edit RPC N if any of the following conditions exist:
      - Wages from parent or spouse.
      - Wages from newspaper route.
      - Self-Employment and non self-employment cannot be broken down.
      - Taxpayer reported self-employment income on line 21 and included the amount on Form 8919.

    ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡


    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    Note:

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

    Note:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • "≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ""

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ "

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡

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

    Exception:

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

    Figure 3.11.3-73

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

3.11.3.14.2.2  (01-01-2014)
Line 8a-Taxable Interest Income

  1. Edit the total taxable interest from one of the following when line 8a is blank:

    • Line 4 of Schedule B

    • Form 1099–INT (found when editing withholding or excess Social Security tax)

    • Form 1099–OID (found when editing withholding or excess Social Security tax)

  2. Edit the line 4, Schedule B amount to line 8a when line 8a is less than the Schedule B amount.

3.11.3.14.2.3  (01-01-2014)
Line 8b-Tax-Exempt Interest (TEI)

  1. If line 8b is blank and Schedule B is attached:

    1. Search Schedule B, Part I, for tax-exempt interest.

    2. Edit to line 8b any tax-exempt interest amount found on Schedule B.

  2. Tax-exempt interest indications include:

    • "Tax-Exempt Interest" ("TEI" ) or "Tax Exempt" ("TE" )

    • "Tax-Exempt Municipal Bonds"

    • "Exempt" , "Exempt Interest" , "EI" , "E" or "I"

    • "Tax Free" or "Tax-Free Interest"

    • "Nontaxable" or "Nontaxable Interest "

3.11.3.14.2.4  (01-01-2014)
Line 9a-Ordinary Dividends

  1. Edit total taxable dividends from one of the following when line 9a is blank:

    • Line 6 of Schedule B

    • Form 1099–DIV (found when editing withholding or excess Social Security tax)

  2. Edit the line 6, Schedule B amount to line 9a when line 9a is less than the Schedule B amount.

  3. "X" the amount on line 9a if it matches the entry on line 7 of Form 1040.

  4. Arrow or edit an entry on line 9b to line 9a if line 9a is blank, dash, or zero.

  5. "X" line 9a if line 9a is less than 9b.

  6. If an amount identified as "Alaska Permanent Fund" is present on line 9a:

    1. Delete the amount from line 9a.

    2. Edit the amount to line 21.

3.11.3.14.2.5  (01-01-2014)
Line 11-Alimony Received

  1. Take no action when the word "received" is crossed out and the word "recaptured" has been added in its place.

3.11.3.14.2.6  (03-13-2013)
Line 12-Business Income or Loss

  1. If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on line 12 and no Schedule C is attached:

    If a document from which a Schedule C can be dummied is Then
    Attached, Dummy a Schedule C. See IRM 3.11.3.14.2.6(2).
    Not attached, Correspond for the missing Schedule C.
    Note: Also correspond for Schedule SE when the amount on line 12 is $434 or more.

  2. Dummy a required Schedule C by editing a positive amount to lines 1 and 3 or a negative amount to line 28 when ALL of the following conditions apply:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Schedule C is not present.

    3. There are no supporting documents from which to dummy the required Schedule C.

    Exception:

    Do NOT dummy Schedule C if corresponding for other missing return items. Instead, include the request for Schedule C in the correspondence to the taxpayer.

3.11.3.14.2.7  (01-01-2014)
Line 13-Capital Gain or Loss

  1. Edit RPC "T" when ALL of the following apply (See Figure 3.11.3–74):

    • There is a positive amount of $1 or more on line 13.

    • Schedule D is not attached.

    • The line 13 box is marked.

    Figure 3.11.3-74

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

  2. When the line 13 box is marked and a negative entry is present on line 13 and no Schedule D is attached, follow the instructions for 3.11.3.14.2.7(3) below (i.e., treat a negative amount on line 13 as if the line 13 checkbox is not marked).

  3. When an amount is present on line 13, Schedule D is not attached, and the line 13 checkbox is not marked:

    If And Then
    A document from which a Schedule D can be dummied is attached, Column (h) can be determined, Dummy a Schedule D. (See Figure 3.11.3–75).
    There are NO documents from which a Schedule D can be dummied, The amount on line 13 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7, Schedule D. (See Figure 3.11.3–76.)
      The amount on line 13 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7, Schedule D.
      The amount on line 13 is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for missing Schedule D.

    Exception:

    Do NOT dummy Schedule D if corresponding for other missing return items. Instead, include the request for Schedule D in the correspondence to the taxpayer.

  4. If income reported from Insurance Companies Demutualization is present (reported by the taxpayer on Form 1099-B), but entered on a line other than 13, edit that amount to line 13 and dummy a Schedule D.

    Figure 3.11.3-75

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

    Figure 3.11.3-76

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

3.11.3.14.2.8  (01-01-2014)
Line 14-Other Gains and Losses

  1. Correspond for Form 4797 when:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Form 4797, Form 4684, or a statement is not attached.

    Note:

    Do not"X" line 14 when the taxpayer has notated "Form 4684" .

3.11.3.14.2.9  (01-01-2014)
Lines 15a & 15b-Total IRA Distributions

  1. Delete line 15a when lines 15a and 15b are the same or there is a difference of less than $1. (See Figure 3.11.3–77.)

  2. Do not edit the amount from line 15a on line 15b when line 15b is blank.

    Figure 3.11.3-77

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


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