In tax year 2009 the IRS adopted a newly designed Form 1040X (Rev. January 2010). As a result the service received both old and new amended forms to process. Beginning in tax year 2010 the IRS will return to a more traditional 1040X (Rev Nov 2010) that contains a 3 column format. To accommodate the different revisions this IRM is addressing the procedures for the old as well as the new direction.

An individual taxpayer may file an Amended US Individual Income Tax Return to correct Forms 1040, 1040A, 1040EZ or a 1040-NR Taxpayers may add, delete, update, or change tax information reported on their original tax return or amounts previously adjusted by the IRS.

When present on Form 1040X, Column A is used to report amounts originally claimed by the taxpayer, amounts adjusted by the IRS (math error on original return), or amounts adjusted from a previously filed Form 1040X for the same tax period.

When present on Form 1040X, Column B, is used to report the amount of change (increase or decrease) for each line the taxpayer is changing. Taxpayers are instructed to show decreases in parenthesis, explain each change in the Explanation of Changes, of the Form 1040X or attached statement, and attach any schedule and/or form related to the change.

The Correct Amount column of the Form 1040X, Column C, is used to show amended figures or to figure the amounts reported in Columns A and B when these columns are present:

The operational instructions in this IRM will determine if the adjustment request can be made in Submission Processing or if it must be routed to another area or function. Returns which can be adjusted in Submission Processing (commonly referred to as "workable " ) are either input on-line using IDRS or sent to ISRP for input.

The general sequence you will follow is:

If a taxpayer files an amended Form 1040 series, Individual Income Tax Return, in lieu of a Form 1040X, you must determine if it is an original, duplicate, or amended return. If an original return, route to Receipt and Control for processing under the correct Program Code. Refer to IRM 3.11.6.4.5.4 for duplicate or "amended" procedures.

Form 1040X and CP Notices are to be processed within 12 calendar days from the IRS received date (day one) to the date the document is delivered to the CIS (Corresponding Imaging System) Unit (ending day) or input of a TC 29X. See IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates. During the peak period the 12 day time frame will be expanded to 20 days. Peak period is defined as March 1st through June 30th.

Occasionally multiple forms 1040/A/EZ/X are attached. For example:

The correspondence procedures throughout the IRM do not address every scenario. Use of Correspondendex , available on SERP, is helpful in accommodating different scenarios that may occur. If unable to determine the correct correspondence procedure consult your manager or lead.

Once a return that has been suspended is returned to be processed close any open controls you have to yourself before routing, corresponding, or inputting the adjustment.

Do not input an adjustment on REQ54 or ENREQ for an account that will be routed or when returning the claim to the taxpayer unless otherwise instructed by a specific tridoc.

Disaster Returns are to be identified as first priority over all other 1040X cases.

Use an erasable red pen for any editing markings.

Edit your Tax Examiner (TE) number in the top left margin of Form 1040X or CP 08, 09 and 27, or follow any local procedures that ensure the integrity of the batch for routing to Files (e.g. number returns, enter IDRS employee number, and date)

Follow local procedures for routing to other functions.

Code and Edit processes Forms 1040X and CP Notice adjustments in a unique blocking series based on the nature of the claim. Use blocking series 05 for processable Forms 1040X and CP Notices unless otherwise directed.

The Control Unit is charged with the responsibility of associating IDRS Source Documents with their related IDRS Transaction Records (ADJ 54 adjustments) that were input on taxpayer accounts. It is vital for the unit to receive source documents in a timely manner. Follow local procedures for routing the source documents to Files within the guidelines in IRM 3.5.61, Files and Management Services

Additional information regarding amended returns may be found in the following IRMs.

The operational guidance in this IRM take precedence over any conflicting operational procedures in other IRMs. Contact your manager if you have any questions about operational guidance and for clarification between operational issues and statutory requirements.

Document 6209, IRS Processing Codes and Information, 1040 attachment guide, Tax Form and Instructions (accessible through the IRS Home Page), and Publication 17 are valuable resources for obtaining additional information and resolving questions.

General SERP alerts issued for IRM 3.11.6 are additions to the IRM instruction and are to be followed as part of IRM 3.11.6.

IRS employees are taxpayers and are entitled to the same security measures to their tax account information in the same manner as other taxpayers who call, write, or visit us.

There are special procedures that you must follow to protect the "taxpayer employee" , as well as to protect yourself. If you receive or initiate telephone contact, or are assigned a case of an IRS employee, take the following actions:

If your unit has a designated employee who handles all cases from IRS employees, refer these cases to that employee.

IRS Employees can be identified from the IRS-EMP-CD on TXMOD and on IMFOLT.

In order to process a return, you must have the TIN. The TIN is the Social Security Number (SSN) or IRS Individual Taxpayer Identification Number (ITIN) for IMF accounts.

An ITIN is a nine-digit number issued by the IRS to individuals who are required for U.S. tax purposes to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a SSN issued by the SSA. The ITIN will be in the format of a SSN and begin with the number "9". The fourth and fifth numbers will range from:

The ITIN is only for federal tax purposes. The ITIN does not:

If the Primary TIN (P-TIN) is missing, incorrect, or illegible, research IDRS (Command Code NAMEI or NAMES), attached correspondence, cross reference with the spouse (Command Code INOLE) and/or dependents using DUPED. If you have exhausted all resources and are still unable to determine the P-TIN, correspond per IRM 3.11.6.9 using Form 8009-A, box 12 (do not input TC 971 with AC 270) for all claims.

If the taxpayer files an amended return and the primary's or secondary's account is set up on the invalid segment of Master File (which requires an asterisk after the TIN (000-00-0000*)), refer as CIS/AM.

If the primary or secondary taxpayer has an ITIN and the taxpayer is changing the ITIN to a valid SSN route to CIS/AM as this involves a merging or a re-sequencing of the accounts and SP does not work these types of cases. Attach an IMFOLR print showing the taxpayer filed under a different TIN.

If both the primary and secondary have filed a return and are now filing MFJ then refer the cases to CIS/AM.

If the taxpayer is filing MFJ and there is no TC 150 posted for the primary's TIN research the secondary's TIN for a TC 150. TC 594 may be present. See IRM 3.11.6.4.5.1

Follow local procedures when routing to files.

Amended returns must be for a specific tax period. When the tax period is missing, and you cannot determine from return information or attachments, research IDRS (Command Code IMFOL or RTVUE) for matching tax data.

If the tax period is found, edit the tax period on the front of the return above the Entity section in YYMM or YYYYMM format or mark the appropriate box, even when routing document to another function.

If you cannot determine the tax period through IDRS research, correspond unless return is being routed to another function. Correspond per IRM 3.11.6.9 using Form 8009-A, box 11.

If the taxpayer tries to submit an amended return for multiple tax periods on a single amended return, send the return back to the taxpayer. Use Form 8009-A box 3 to inform the taxpayer they must submit a separate amended return for each specific tax period that they are trying to amend.

The due date of a calendar year individual income tax return is April 15. A fiscal year individual income tax return is due the fifteenth day of the fourth month following the close of the fiscal year.

Certain information concerning Superseding returns:

Every Form 1040X should be stamped with a processing center Received Date stamp. If the Received Date stamp is missing, or illegible, but is found elsewhere in the return packet, edit the date to the front of the return in MMDDYY or MMDDYYYY format in the blank space above Line 1.

Beginning April 23, 2013, honor received dates that are edited in green ink on current year 1040X's received with payments as the return received date to be used for processing.

If the Received Date stamp is not found, edit the Received Date based on the order of precedence below in the same format and location as stated in (1) above.

Use the following chart when there are multiple received dates stamped and/or edited on the return:

Input the received date of Form 1040X as the received date on IDRS.

The taxpayer may request that $3 go to the Presidential Election Campaign Fund (PECF) by checking one or both boxes on Page 2 of Form 1040X.

A PECF request can only be processed for the current tax year and one tax year prior; and if there is a tax change on Line 10 of Form 1040X.

If the return meets correspondence criteria and an adjustment will not be input, do NOTprocess the PECF request. Correspond as required.

To process a PECF request, edit the following items to a blank Form 1040X as a "Dummy PECF" return.

Edit "PECF Prep" in the left margin of Form 1040X then continue processing the return.

Route "Dummy PECF" to Batching/ISRP per local procedures.

A discovered remittance is any form of payment (cash, check, money order, stamp, jewelry, etc.) other than credit card that the taxpayer may send in.

When a remittance is discovered, immediately turn the remittance over to your Manager or Lead.

Edit the Received Date if missing onto either the Discovered Remittance, Form 1040-V, or the return.

If the taxpayer sends in a credit card or credit card information, refer the case to the Manager or Lead for a formal 3956C disallowance letter to be issued.

For additional information on discovered remittances, see IRM 3.8.46, Discovered Remittances.

Carryback/Carryforward claims deal with amended returns that create or modify a net operating loss (NOL). This also includes Net Capital Loss (NCL), unused credits, or a Claim-of-Right adjustment. The tax year the loss occurred is the loss year . The tax year the loss is applied to, is the gain year .

ALL carryback/carryforward claims are to be expedited to AM. Follow any local procedures for separating carryback/carryforward claims from other CIS/AM issues routed through ICT.

Indications that a taxpayer is trying to take a loss are as follows:

Do not treat the following claims as Carryback/Carryforward claims:

If unable to determine the difference between (3) (e) xii from (4) (f) take it to the work leader to make the determination.

Submission Processing will process 1040X statute year claims. These will consist of tax decreases/credit increases meeting SP's 1040X criteria.

All Statute year cases will continue to be identified in Receipt and Control and routed to the Statute teams in Accounts Management. The Statute teams will identify tax decreases/credit increases and route to the 1040X teams to be processed. Due to different local configurations at the 3 sites the cases coming from Statute will be routed per local agreement for distribution to the 1040X area.

The difference between Assessment Statute Expiration Date (ASED) and Refund Statute Expiration Date (RSED).

If claim is incomplete and/or additional information is necessary to process a tax decrease/no tax change see If/Then table below.

Any case requiring a transfer to Excess Collections or requiring a manual refund will be referred to CIS/AM.

Per IRM 25.6.1.6.5, you must route returns discovered with 90 days or less remaining until the Assessment Statute Expiration Date (ASED) to the Statute function. The 90 day period allows the Statute function time to secure any additional information required to clear the return or resolve an issue. Balance Due and Full Paid Module can be found on TXMOD MOD-BAL. This identifies the total dollar amount pending or posted to MF. A hyphen (-) following the amount indicates a credit balance. It also identifies the SC balance plus any pending transaction amounts.

For processing year 2012 the 2008 tax return has a different expiration date. Due to April 15, 2012 falling on a Sunday and the Emancipation Day holiday falling on Monday, April 16, the Assessment Statute Expiration Date (ASED) for assessing tax on a 2008 tax return will expire on 04/17/2012, unless the taxpayer filed an extension, which extends the statute to 10/15/2012. The 90 days begins 01/18/2012. Although the ASED has been extended until Tuesday, April 17th, it is imperative to expedite all statute imminent assessments to be processed by, April 16th.

Follow the procedures below in working cases in order from top to bottom of the chart:

Follow the procedures and examples below for inputting the received date and amended claims date.

If a Form 1040 is received in the 1040X unit and the Form 1040 is stamped "Statute Cleared" , research IDRS for a TC 150:

See IRM 3.11.6.3.14 if the case is a Substitute for Return (SFR).

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Review all claims and amended returns for Examination involvement. This may include:

If the case is being forwarded to Exam input a TC 971, AC 013. Input the received date of the amended return for the transaction date.

Before forwarding any case to Examination or CAT A, input any tax increase or credit decrease

See following table for more detailed instructions for inputting partial adjustments as described above.

Refer Forms 1040X to the Lead, Manager, and Planning Analysis Analyst, if necessary, for any of the following reasons, provided the case does not meet Cat A criteria and is not open in AIMS:

The lead will forward the case to Examination Classification function for technical assistance, use a CAT-A cover sheet, marking the Other box.The Examination Classification function should respond within 3 days. Do not input TC 971.

Form 14039 is completed by taxpayers and sent to the IRS to identify themselves as victims of ID Theft. Some of these forms involve tax related issues. Taxpayers send this form in by itself or attached to a letter or notice. They also will send them in attached to Form 1040X. 1040Xs with Form 14039 attached should be routed to CIS/AM. This would apply to loose forms as well as forms attached to a letter or notice.

Sometimes the taxpayer does not submit Form 14039 but indicates in the Explanation of Changes section of Form 1040X that they were a victim of identity theft or on a separate note. Route these cases to CIS/AM.

TC 971-134 on account Indicates AM TAP or criminal investigation, -R freeze and indication of letter 4464C sent The IRS will track identity theft or data loss incidents using Service wide indicators on the IMF. Specifically, these codes will be placed on the IMF as Transaction Code (TC) 971 with an Action Code (AC) of 501, 504, 505, 506, 522, 523 or 524.. Route to CIS/AM if present and the taxpayer has submitted Form 1040X. If processing a 1040 series return see IRM 3.11.6.4.5.4

All correspondence and Forms 1040X must be reviewed for a change to AUR criteria. Referrals to AUR should only be for AUR criteria which involve verifiable information. Verifiable information is any information that can be verified on IRPTR by AUR (i.e income, withholding, mortgage interest). Verifiable information does not include changes to filing status, dependents, exemptions or correcting a math error. AUR will return all Forms 1040X and correspondence if it does not meet their criteria.

If it is determined that AUR criteria has been met, check TXMOD/IMFOL for a TC 922 on the module. Identify the Underreporter Process Code associated with the TC 922. The last process code (2 – digit) shown beside the TC 922 will determine its status. Use the chart below when determining the course of action to be taken.

The only process codes listed on the chart above are the codes submission processing needs to route to other areas. For a complete listing refer to Chapter 8, Section 19 of Document 6209.

Many times a Form 1040X will be filed as an AUR reconsideration case. Form 1040X should be considered an AUR reconsideration case if AUR criteria as stated in paragraph (1) above and the following additional criteria are met:

If the taxpayer’s account contains a TC 160/161/162 and there is a change to total tax (TC 290/291) then route to CIS/AM.

Cases are referred to Accounts Management based on the issue, the dollar tolerance, computer program capabilities (e.g. Blocking Series), and other various reasons. Refer to the specific IRM instruction or the 1040X Routing Guide see IRM 3.11.6.12Also see IRM 3.11.6.3.4 on screening and sorting Cat A criteria.

Route all AFC returns to CIS to be scanned. Follow any local procedure for separating the "Carryback/Carryforward" , " Disaster Claims" , etc. that require special handling.

If a return has been CIS imaged then refer to CIS/AM.

A return must have a TC 150 posted before routing. See IRM 3.11.6.4.1 and IRM 3.11.6.4.5

The Affordable Care Act enacted April 2010 expanded tax benefits for health professionals working in under served communities. Health care professionals who received student loan relief under various state programs and work in under served communities may qualify for refunds on their 2009 federal income tax returns. If you receive the Form 1040X, Amended U.S. Individual Income Tax Return, referencing the “Excluded student loan amount under 2010 Health Care Act ”, “Affordable Care Act” or “Student Loan Forgiveness”, please route the claim to CIS/AM as they will be processing these claims.

When a taxpayer asks to be referred to TAS or the taxpayer meets TAS criteria (listed below), refer the case to the unit manager. Review all attachments for taxpayer notations/correspondence to determine whether the taxpayer meets TAS case criteria or requests TAS assistance.

If the taxpayer's issue cannot be completely resolved within 24 hours, but steps are taken to begin resolving the taxpayers issues within 24 hours, then do not forward Form 911 unless the taxpayer asks to be referred to TAS. The unit manager will ensure that a Form 911, Application for Taxpayer Advocate Assistance Order (ATAO), is timely forwarded to the local TAS office when necessary. (For additional information see IRM 13.1.7.4)

Follow local procedures for routing to TAS.

The IRS is faced with a growing number of individuals who file frivolous tax returns based upon tax avoidance arguments that are not supported by law. Internal Revenue Code (IRC) Section 6702(a) provides for the assessment of penalties for filing frivolous tax returns.

A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by both individuals and businesses are included, but are not limited to, a list in Exhibit 3.11.6-4 Frivolous Claims.

Effective January 1, 2010, a new action code, TC 971-089, was implemented to indicate to IDRS users that a frivolous return has been received. An F- freeze is generated on all tax periods and a CP 72 is issued to the taxpayer. The TC 971-089 will freeze the entire account. Adjustments should not be made to accounts showing an F- freeze.

Route any "suspicious" return to the designated boxes in Submission Processing as well as claims with an F- freeze. The same boxes can be used for original returns, as well as claims (e.g. Forms 1040X) identified as "frivolous claims" , or follow the most efficient local procedure. The Frivolous Return Programmer (FRP) Coordinator will review any return which the taxpayer:

If a non-frivolous claim is received and CC TXMOD shows an open control base to an employee in the FRP (Unit Numbers: 04690, 04691, 04692, 04693 or 04694, route to FRP.
IRS Frivolous Return Program
1973 N Rulon White Blvd
Mail Stop 4390
Ogden, UT 84404

Route all International returns to CIS so they can be scanned and shipped electronically to the International Department Accounts Management in Philadelphia. The public is instructed to send international 1040Xs to Austin so they can be scanned into CIS. Philadelphia does not have a scanning operation.

Do not process any Form 1040X if all the Forms W-2, and Forms 1099 attached are from the Virgin Islands (regardless of the address). Pull these returns and transship to the following address:
Virgin Islands Bureau of Internal Revenue
9601 Estate Thomas
Charlotte Amalle
St. Thomas, U.S. Virgin Islands 00802

Route to CIS/AM if dual status is indicated by the following conditions on an "amended" Form 1040:

Do not True Dupe International returns.

Form 1040/A/EZ/NR that have a red W-7 stamped in the bottom left corner of the return have been received from an ITIN Unit. IDRS research is needed to determine whether there is a TC 150 posted on the TIN provided or under a different TIN. If the primary and/or secondary taxpayers have a newly issued ITIN, follow the instructions below. If only the dependents have a newly issued ITIN, follow normal 1040X procedures. Do not follow the instructions below.

W-7 returns that are TRUE DUPES should be placed on the CIS/AM cart with a new revision of the ITIN/IRSN DUPES cover sheet. If the TC 150 is found under a TIN that is different from the TIN on the return, then attach an IMFOL screen print so that CIS/AM can determine where to control the case.

If a W-7 return meets CIS/AM criteria other than the information listed in (2) above then route to CIS/AM on a revised coversheet.

W-7 returns where there is no TC 150 posted, but there is more than one TIN for the Tax Payer, are to be routed to Receipt and Control to be processed as an original return using the ITIN. If the W-7 return contains an IRSN for the primary TP but an ITIN/SSN is found, circle out the primary TP’s IRSN and edit the ITIN/SSN to the return. If both an ITIN and a SSN are found for the primary TP, circle out the IRSN and edit the SSN.

If “ITIN Reject” is stamped in the Primary SSN box, AND you cannot locate a TIN after researching NAMES or NAMEI, then notate “ITIN RJ” and place in “Route-Out” folder. If a TIN is found, edit the TIN to the Form 1040X and follow above instructions.

Research Primary Taxpayers TINs using Command Codes IMFOL and TRDBV.

Research Spouse TIN.

Research Dependents TIN.

ITIN Rejects

Route all claims identified as "Killed in Terrorist Action (KITA)" , "Killed in Action (KIA)" to the KITA Coordinator in Accounts Management for processing.

If "KITA" is indicated on TXMOD (upper right corner on first line), route to KITA Coordinator.

The following should be detached and routed to the Collection Function if attached to the Form 1040X. Continue processing the amended return.

Route all Automated Substitute For Return (ASFR) . The most distinctive way to identify an ASFR account is the TC 150 for .00 with an "SFR" literal to the right of the Document Locator Number (DLN) on TXMOD or the " SUBST4" on IMFOLI "Vestigial: Assessed Posted Return" column.

Input TC 971/AC 012 only when sending the entire return to Collection.

The T- Freeze is a TDA Status alpha indicator showing the account is assigned to Collections. The module is not frozen. T- Freeze accounts are assigned to specific Collection functions which are indicated by the Status Code: Status 22 is in ACS (Automated Collection System), Status 24 is in the Queue, and Status 26 is in the Collection Field Function (CFF) a revenue officer assignment.

If Letter 1058, Notice of Intent to Levy (Final Notice) or CP-90Notice of Intent to Levy is attached to Form 1040X, and other correspondence such as request for payment plan, "can’t pay" , "won’t pay" , or "will pay later" , etc., route to Automated Collection System (ACS) as follows:

Adjustment procedures when a -Y freeze is present on the module:

If unable to determine the correct adjustment consult your work leader or manager.

Innocent spouse/joint and several liability relief claims and Forms 8857, Request for Innocent Spouse Relief, are centralized at Covington, KY. Route innocent spouse claims on Forms 8857, or Form 1040X referencing innocent spouse (with or without Form 8857 attached) as follows:

If the taxpayer files Form 8379 with Form 1040X, process the Form 1040X. If the adjustment will result in a credit balance input a hold code 1 to prevent refund issuance and allow AM to allocate the credits correctly per the Form 8379.

Input the adjustment as "No Source Document" (NSD). Once the adjustment is complete bring the Form 8379 to the top of the claim and route the entire original package to CIS/AM. Input a TC 971 AC 071.

If the taxpayer is filing a Form 1040X with the sole purpose of filing the Injured Spouse Claim and no other issue is involved then input a TC 290 .00 as "No Source Document" (NSD) and close the control base and change the Category Code to MISC. Bring the Form 8379 to the top of the claim and route the entire original package to CIS/AM. Input a TC 971 AC 071.

If the taxpayer indicates an Injured Spouse Allocation, but does not submit Form 8379 route the entire package to CIS/AM.

Do not confuse Injured Spouse and Innocent Spouse although both forms will be routed out

Taxpayers who live in an area for which the President issues a "Declaration of Emergency or Major disaster" may file disaster claims. The IRS may place a -O/-S freeze on the module for the zip codes of the affected areas to indicate the taxpayer resides in a disaster area. The -O/-S freeze is only an indicator that the taxpayer resides in a disaster area and does not necessarily mean the taxpayer is filing a disaster claim.

A disaster claim is filed using Form 4684, Casualty and Theft Loss, and is reported in addition to the standard deduction or on Schedule A. A disaster claim can be identified by an amount on line 17 of Form 4684.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Taxpayers who cite Publ 109-7 Proper Tax Treatment of Certain Disaster Mitigation Payments enacted on April 15, 2005, for grant payments under the Flood Mitigation Assistance Program (FMA), the Pre-Disaster Mitigation Program (PDM), or the Hazard Mitigation Grant Program (HMGP) which are grants used to elevate structures located on flood-prone properties owned by individuals and business exempt from tax.

Taxpayers who paid taxes on these payments are eligible to claim a refund. Process these returns using RC 032

The Pension Protection Act of 2006 waives the ten-percent penalty tax that normally applies to most retirement distributions received before age 59 1/2. This law provides this penalty relief to reservist called to active duty for at least 180 days or for an indefinite period of time beginning after September 11, 2001.

Taxpayers have been instructed to write "Active Duty Reservist " in the top margin of the Form 1040X. If the 10% tax was already paid on a distribution. Eligible reservists may file Form 1040X Amended U.S. Individual Income Tax Return, to claim a refund. The words " Active Duty" should be written on the top of the form. Part II, Explanation of Changes should include:

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If the taxpayer does not provide the early retirement distribution amount or tax paid and the distribution cannot be verified through IRPTR or the active duty date is not provided, correspond using Form 8009-A box 25 or 324C. Use fill-in:"Please provide the date you were called to active duty, the amount of the retirement distribution, and the amount of early distribution tax paid.

Submission Processing will only process Combat Zone claims with net refund or zero balance. Any balance due Combat Zone returns must be routed to CIS/AM

Several clues to determine if Form 1040X is a Combat Zone return are:

If a -C Freeze , is posted on TXMOD/IMFOL, then IMFOLE or ENMOD will show a TC 500 with one of the following Closing Codes

If present, continue processing the return.

If there is no TC 500 posted on a return that has been identified as a Combat Zone return, input a TC 500 with the appropriate closing code (see 3 above) using REQ77. If the taxpayer provided a Date of Entry or Deployment, use that date for the TRANS-DT; otherwise use the IRS Received Date.

Input a TC 160 .00 if a TC 160 is already present on the account.

If a "-I/I-" or "G-" Freeze Code is present, refer to CIS/AM

Follow correspondence procedures (IRM 3.11.6.9) when required information is missing from the return.

Do not True Dupe Combat Zone returns.

Refer to IRM 3.11.6.8.1.2 if "Military Family Tax Relief Act" is indicated on the Form 1040X.

Taxpayers file Form 1040X claims based on a recalculation of disability retirement income received from the Government for their military retirement. These claims are based on IRC section 122 and recalculate the amount of taxable versus non-taxable income received. This is a misinterpretation of the Code section and is not allowable. The Form 1099-R issued by the Government does not include any amounts received as disability and the taxpayer in actuality is attempting to take a double deduction.

Disallow any claim citing "Internal Revenue Service Section 1.122-1" or "Pursuant to 26 CFR", unless the VA Determination letter with entitlement award is included with the claim. The letter will show the award amount and the monthly entitlement award. If the letter and entitlement award are present route to CIS/AM, otherwise follow paragraph (3) for disallowance procedures.

Refer to IRM 3.11.6.9.3 for disallowance letter and use fill-in: "You are incorrectly applying the formulas under section 122 to your retirement pay that was reported on Form 1099-R. The nontaxable amount (if any) was already deducted by the Department of Defense from the amount shown on your Form 1099-R. You are not entitled to any further reduction."

Submission Processing will only process Balance Due and Zero Balance decedent 1040X returns.

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

Correspond for missing signature if return is not signed by a surviving spouse*, an attorney, CPA or representative of bank/fiduciary institution (credit union, pension funds, etc.). Correspond per IRM 3.11.6.9 using a 324C letter, paragraphs A, P, Y, b. "The return must be signed below the jurat but not on the paid preparer line."

If correspondence is required for any missing forms/schedules; do not address the correspondence to the deceased taxpayer.

Documentary evidence is not required for the authority to sign the following:

Route the following to CIS/AM:

To release forms that are screened, sort into batches for each category and follow local routing procedures (including Batch Transmittal).

"Hand carry" statute returns to the area following local procedures.

For "PECF Dummy" returns to be processed through ISRP, notate the correct Program Code and Blocking Series for Batching and Numbering function.

Follow IDRS screening procedures for sorting and routing returns or correspondence to another function. For Carryback/Carryforward claims, Disaster Claims, Injured Spouse, Innocent Spouse, Statute returns, etc., follow local procedures for routing to CIS/AM.

If there is no TC 150 posted on a Current or Prior Year module, research to determine if original has been filed using CC:TRDBV and IMFOLT.

If TRDBV or IMFOLT shows a return has been filed and/or is pending suspend case and monitor for the TC 150 to post. If a TC 594 is present, research for the TC 150 using the spouse's TIN; if present, continue processing the return.

If no return has been filed suspend case for 60 days from the IRS received date. At the end of 60 days if there is still no return on file and/or a pending TC 150, return claim to taxpayer requesting a complete original return.

If a tax account has not be established for the tax year use CC ACTON to establish a dummy account. When a tax account has not been established and the taxpayer has never previously filed a return CC MFREQD cannot be input.

If the taxpayer previously had an ITIN or IRSN and is switching to a valid SSN and the return needs to be suspended then suspend the return using the SSN.

If routing a return to CIS/AM unless otherwise specified above ensure a TC 150 exists.

All processable claims require a valid signature(s). The signature(s) is required anywhere below the jurat (perjury statement) on Amended returns and CP Notices.

If the jurat has been altered, treat it as a Frivolous claim. If the jurat is missing, treat it as an unsigned return and correspond for the missing signature(s) using a 324C Letter to obtain the signature. Do not mail the return back to the taxpayer. (Process the net balance due per IRM 3.11.6.9.1 (2).).

When the signature present is not clearly determined to be an original signature, correspond per IRM 3.11.6.9. This does not include CIS imaged returns. If there is a question consult your lead or manager.

If Form 1040X is not signed, however a Form 1040 matching the Correct Amount column of Form 1040X is attached and signed, accept the signature and continue processing the return. Edit a notation onto the signature line, if present, on Form 1040X indicating that the Form 1040 is signed. Otherwise edit the notation on the front bottom portion of Form 1040X.

Correspond for the signature of two witnesses when the taxpayer signs with a mark such as an "X" . See IRM 3.11.6.9.

Joint returns require the signature of both taxpayers unless one of the taxpayers falls into one of the categories below:

If the taxpayer is a minor (there must be a clear indication the child is a minor) the return must be signed by one of the following:

Do not correspond for a missing/incorrect signature(s) if:

When corresponding for signature issues see IRM 3.11.6.10

The return must be signed below the jurat but not in the "paid preparer" section.