3.11.13  Employment Tax Returns (Cont. 2)

3.11.13.21 
Form 944, Return Perfection and Line Editing

3.11.13.21.2  (01-01-2015)
Line 2, Total income tax withheld from wages, tips, and other compensation (Domestic Only)

  1. This line reports the total of income tax withheld from all employees earning wages, tips, fringe benefits, etc. during the year.

  2. Perfect the line for validity. Ensure all entries are numeric in dollars and cents.

3.11.13.21.3  (01-01-2015)
Line 3, If no wages, tips, and other compensation are subject to social security or Medicare tax

  1. Follow the procedures below for the box on Line 3.

    IF THEN
    The box on Line 3 is checked, Edit CCC B and continue to process the return. See Figure 3.11.13-58.
    The box on Line 3 is not checked, Take no action and continue to process the return.

    Figure 3.11.13-58

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3.11.13.21.4  (01-01-2015)
Line 4a, 4b, and 4c, 4d and 4e (Revision 2014, 2013) or Line 4a, 4b, 4c and 4d (Revision 2012 and prior) ; Columns 1 and 2, Taxable Social Security, Column 1 Medicare Wages and Tips, Column 1 Taxable Wages and Tips subject to Additional Medicare Tax Withholding

  1. Process Lines 4a, 4b, 4c and 4d and 4e as follows:

    IF AND THEN
    No entries appear in column 1, Line(s) 4a, 4b, 4c or 4d (Revision 2014, 2013) or 4a, 4b, or 4c (Revision 2012 and prior), Entries appear in column 2, Line(s) 4a, 4b, or 4c, and 4d (Revision 2014, 2013) or column 2, Line(s) 4a,4b, or 4c (Revision 2012 and prior)
    1. Take the tax amount on column 2, Lines 4a, 4b, 4c and/or 4d (Revision 2014, 2013) or Lines 4a,4b and/or 4c (Revision 2012 and prior) and divide the tax amount

      • For tax year 2014 and 2013 , by the Social Security rate of 12.4% (.124) and the Medicare rate of 2.9%(.029) and the Additional Medicare Tax withholding by 0.9% (.009)

      • For tax year 2011 and 2012, by the Social Security rate of 10.4% (.104) and the Medicare rate of 2.9% (.029)

      • For all other tax years, by the Social Security rate of 12.4% (.124) and the Medicare rate of 2.9% (.029)

      Enter the result on the appropriate wage to tip line(s). Also enter the Line 4c, column 1 result on Line 1 (Domestic Only), if blank. See Figure 3.11.13-59.

      Note:

      factor back before using Line 1.

    2. Review the return and attachments to determine the correct amount for column 1, Line(s) 4a, 4b, 4c or 4d(Revision 2014, 2013) or Line(s) 4a,4b or 4c (Revision 2012 or prior)

    3. If available, edit the correct amount for column 1, Line(s) 4a, 4b, 4c or 4d (Revision 2014, 2013) or Line(s) 4a,4b or 4c (Revision 2012 and prior)

    4. Continue to process the return.

    An identical entry appears on column 1, Line(s) 4a, 4b and 4c,   Delete the Line 4b entry by placing an asterisk (*) to the left of the amount.
    An entry has been made on column 1, Line 4b, No tax has been entered on column 2, Line 4b,
    1. Review the return (including the entity) and attachments,

    2. Compare the column 1, Line 4b entry to Line(s) 1, 4a, 4c, 4d, 4e, Line 7 (Revision 2014, 2013), or to column 1, Line 4b entry to Line(s) 4a,4c,4d, Line 7 (Revision 2012 and prior) and, if the tax year is other than 2011, Line 9,

    3. If the Line 4b entry is equal to an amount on one of the lines referenced in Step 2, or if the box on Line 3 is checked, delete the entry in column 1, Line 4b. Place an asterisk (*) to the left of the entry,

    4. If the column 1, Line 4b entry is not equal to an amount for the lines referenced in Step 2, and the box on Line 3 is not checked, continue to process the return.

    Columns 1 and 2, Lines 4a, 4b and 4c are blank, zero or "none" , There is an amount on Line 1 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Domestic Only) or processing a foreign return,
    1. If the box on Line 3 is checked, edit CCC "B" and continue to process the return,

    2. If the box on Line 3 is not checked, review the return and attachments to determine if the taxpayer is claiming to be "exempt" from Social Security and Medicare tax by indicating one of the following:
      • The maximum Social Security or Medicare tax has been paid
      • Wages for children under 18 years old
      • Minister wages
      • Railroad
      • United Transportation Union
      • Non-qualified Plan (Section 457 plan)
      • Church FICA issue
      • Foreign Employer with US employee,

      Caution:

      Review any attachment closely for an indication of exempt from Social Security and Medicare when processing a foreign return.

    3. If so, edit a CCC B to the lower margin of the return and continue to process the return.

    4. If there is no indication of the taxpayer being exempt (e.g., as described in #2 above), research IDRS for Employment Code of C, F or G.
      If the taxpayer have an Employment Code of C, F or G, edit a CCC "B" , and continue to process the return,

    5. If not, edit the amount shown on Line 1 to Line(s) 4a and 4c, Column 1 and continue to process the return.

    Social Security wages are shown on column 1, Line(s) 4a or 4b, Columns 1 and 2 Line 4c are blank, zero or "none" and the box on Line 3 is not checked,
    Enter the Line 1 amount to column 1, Line 4c and continue to process the return.
    Social Security wages are shown in column 1, Line(s) 4a or 4b; column 1 Line 4c is blank, zero or "none" , There is an entry on column 2, Line 4c,
    1. Divide the tax amount by the Medicare rate (.029). See Figure 3.11.13-60.

    2. Edit the result to column 1, Line 4c, and continue to process the return.

    Column 1, Line(s) 4a or 4b show a negative entry, The taxpayer has NOT provided an explanation Asterisk (*) to the left of the negative amount and edit as a positive entry, left of the asterisk.

    Note:

    This will cause a math error notice to generate to the taxpayer.

    Line 4d (Revision 2012 and prior) is blank, There are entries (or an entry) in column 2 of Line(s) 4a, 4b or 4c, Add the entries from column 2, Line(s) 4a, 4b or 4c and enter the calculated result on Line 4d.
    Line 4e (Revision 2014 or 2013) is blank, There are entries (or an entry) in column 2 of Line(s) 4a, 4b, 4c or 4d, Add the entries from column 2, Line(s) 4a, 4b, 4c or 4d and enter the calculated result on Line 4e.  

    Figure 3.11.13-59

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    Figure 3.11.13-60

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  2. If the taxpayer indicates they employ family members, and it can be determined that the Line 1 entry represents the amount of employed family member's wages, and column 1, Lines 4a and 4c do not have entries; then edit the Line 1 amount to column 1, Lines 4a and 4c. DO NOT CORRESPOND.

3.11.13.21.5  (01-01-2015)
Lines 5a, Number Qualified Employees Paid Exempt Wages
Line 5b, Exempt Social Security Wages, (Revision 2010 Only)

  1. Employers who hire unemployed workers this year (after February 3, 2010 and before January 1, 2011) may qualify for a 6.2 percent payroll tax incentive, in effect exempting them from their share of Social Security tax on wages paid to these workers after March 18, 2010. This reduced tax rate will have no effect on the employee's future Social Security benefits, and employers are still required to withhold the employee's 6.2 percent share of Social Security as well as income taxes. The employer and employee's shares of Medicare taxes would also still apply to any wages paid.

  2. Lines 5a and 5b are both transcription lines. Accept taxpayer's figures.

3.11.13.21.6  (01-01-2015)
Line 5, (Revision 2011 and Subsequent) or
Line 5d, Total Taxes Before Adjustments (Revision 2010 and prior) (Domestic Only)

  1. Line 5 (Revision 2011 and subsequent ) or Line 5d, (Revision 2010 and prior), Total taxes before adjustment, is the result of the following formula:

    1. Tax Year 2013 (Revision 2014 and 2013) - Add Line 2 + Line 4e= Line 5, Tax Year 2011(2011) and Tax Year 2012 (Revision 2012)- Add Line 2 + Line 4d = Line 5

    2. Tax Year 2010 (Revision 2010) - Add Line 2 +Line 4d less (minus) Line 5c = Line 5d

    3. Tax Year 2009 and prior - Same formula as yr 2011 above.

  2. It may be necessary to compute Line 5 (Revision 2011 and subsequent) or 5d, (Revision 2010 and prior) in the following instances:

    Note:

    For tax period 2011 and tax period 2010, Line 5 is a T-line. For all revisions, follow the procedures below.

    IF THEN
    Line 5 is blank, zero, dash or none and Tax year is 2013 or subsequent, Compute by adding Lines 2 and 4e, and enter the result on Line 5.
    Line 5 is blank, zero, dash or none and Tax year is 2011 or 2012, Compute by adding Lines 2 and 4d, and enter the result on Line 5.
    Line 5d is blank, zero, dash or none and Tax year is 2010 and prior, ( Revision 2010) Compute by adding Lines 2 + 4d - 5c and enter in 5d.
    (All other revision years) Follow direction shown on Form 944, Line 5.
    Line 5 (Revision 2011 or subsequent) or Line 5d (Revision 2010 and prior) contains an entry, Accept the taxpayer's entry.

3.11.13.21.7  (01-01-2015)
Line 6, Current Year Adjustments (Revision 2009 & Subsequent)

  1. Entries on Line 6 can be a positive, negative or minus amount. Line 6 entries represent:

    • Fractions of cents adjustments

    • Sick pay adjustments to social security and Medicare

    • Adjustments for tips and group-term life insurance

  2. An entry on Line 6 does not require a supporting statement for substantiation. Therefore, accept the taxpayer's entry.

  3. If Form 944-X is attached to support Line 6 only, DO NOT detach or process Form 944-X. Line through the document to indicate that its not to be processed.

  4. If the amount on Line 6 can be determined to be other than the conditions in (1) and Form 944-X is attached:

    1. Edit an asterisk next to Line 6

  5. If the amount on Line 6 is the same as the amount on Line 5 (Revision 2011 or subsequent, or Line 5d, Revision 2010 and prior) or Line 7, consider the amount on Line 6 to be a misplaced entry. Edit an asterisk to the left of the Line 6 entry.

3.11.13.21.8  (01-01-2015)
Line 7, Total Taxes After Adjustments

  1. Verify a negative amount on Line 7 by following the directions on the form itself:

    1. If the amount on Line 7 is not correct, place an asterisk to the left of the negative amount and enter correct amount to the left of the asterisk.

  2. Line 7 must have an entry:

    IF AND THEN
    Line 7 is blank, zero, dash or none  
    • Form 944, Revision year 2011 or subsequent- Combine Line 5 and Line 6 and enter the result on Line 7.

    • Form 944, Revision year 2010 and prior- Combine Line 5d and 6 and enter the result on Line 7.

    Line 9 (Revision 2010 and prior) has an entry, Edit the Line 9 (Revision 2010 and prior) amount on Line 7. See Figure 3.11.13-61.

    Figure 3.11.13-61

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3.11.13.21.9  (01-01-2015)
Line 8, Advance Earned Income Credit (AEIC) Payment Made To Employees (Tax Periods 2010 & Prior Only) (Domestic Only)

  1. For tax periods 2010 and prior, the Advance Earned Income Credit (AEIC)was a tax credit for certain employees in the United States. Eligible employees could choose whether to claim all of the credit on their tax return (Form 1040) or, receive part of the credit in advance with their pay during the year and claim the remainder of the credit on their tax return. The employer may or may not have to make a tax deposit during the quarter. Therefore, do not assume that AEIC is a misplaced entry if there is no deposit(s). This largely applies to small dollar returns. If the Total Taxes minus the AEIC equals the Net taxes do not move the AEIC entry.

  2. However, due to legislation effective for tax periods beginning January 1, 2011, employees lost the option to receive Advance Earned income Credit in their pay. Eligible employees must claim the credit on their tax return (Form 1040).

  3. Process the Line 8 entry (for tax period 2010 and prior) as follows:

    Note:

    Line references in this table refer to Revision 2010 and prior

    IF AND THEN
    The tax period is 2011 and subsequent,   Place an asterisk (*) to the left of the entry and enter the amount from Line 7 on Line 9.
    The Line 8 entry is negative, is other than Advance Payment of EIC (i.e. Net tax entered on Line 8 rather than Line 9),
    1. Review the return to determine if there is an incorrect line entry,

    2. If so, place an asterisk (*) to the left of the amount, edit the entry to the correct line,

    3. If the entry is correct, but should not have parenthesis or brackets, delete the incorrect editing.

    The Line 8 entry is equal to Line 7 and Line 9, is clearly a misplaced entry, Place an asterisk (*) to the left of the entry, See Figure 3.11.13-62 which shows the amount for Total Taxes erroneously entered on Line 8.
    Line 8 shows the correct entry, The Line 8 amount is larger than the entry on Line 7 Total Taxes,
    1. Place an asterisk (*) to the left of the Line 8 entry, and edit the amount on Line 7 to Line 8,

    2. Determine the difference between the amounts on Line 7 and the original Line 8, AEIC,

    3. Add the calculated amount to the taxpayer's entry on Line 10. Edit the new amount to the left of Line 10. See Figure 3.11.13-63.

    The amount on Line 8 is larger than the amount on Line 10, Line 9 is blank, Compute Line 9 by subtracting Line 10 from 8. Enter the calculated amount on Line 9.

    Figure 3.11.13-62

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    Figure 3.11.13-63

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3.11.13.21.10  (01-01-2015)
Line 9, Total Taxes After Adjustment of Advance EIC (Revision 2010 and Prior) (Domestic Only)

  1. The Line 9 (Total taxes after adjustment for AEIC) amount should be the total of Line 7 (Total taxes after adjustment) less Line 8 (Advance Earned Income Credit (AEIC) payments made to employees).

  2. Line 9 is not a T-line, but may require being calculated in the following instances:

    Note:

    Line references Form 944 Revision 2010 and Prior

    IF AND THEN
    Line 9 is blank, Line(s) 10, 12, 13 or 14 needed to be verified or computed, Compute Line 9 using Line 7 and Line 8.
    You need to determine if SIC should be edited to the return,
    Line 9 contains an entry, Line(s) 10, 12, 13 or 14 needed to be verified or computed, Accept the taxpayer's entry.

    Note:

    If Line 9 shows a negative or minus entry, check Form 945-A to determine if the same amount appears on Form 945-A. If so, treat the entry on Line 9 as a misplaced entry and enter the amount on Line 10. If not, consider the entry as an excess of Advance Earned Income Credit. Asterisk (*) to the left of the entry on Line 9, and enter the total tax amount from Line 7. Calculate the difference between the amounts on Lines 7 and 9, and enter the result on Line 10.

3.11.13.21.11  (01-01-2015)
Line 8, Total Deposits for the Year, through Line 12, Overpayment (Revision 2011 and Subsequent), or
Line 10, through Line 14 (Revision 2009 & 2010)

  1. COBRA gives employees who lose coverage under the employer's group health plan, due to a qualifying event, the right to elect to continue that coverage (under COBRA) for a period of time by paying premiums. COBRA covers multi-employer health plans and health plans maintained by private sector employers with 20 or more employees. It does not apply to churches or certain religious organizations.

  2. The American Recovery and Reinvestment Act of 2009 and subsequent legislation provide for premium assistance for individuals and their families (referred to as "assistance eligible individuals" ) who lose employer health coverage to continue under COBRA coverage. The premium assistance also applies to temporary continuation coverage elected under the Federal Employees Health Benefits Program and to continuation coverage under State programs that provide for coverage comparable to COBRA continuation coverage. However, certain conditions must be met:

    1. Any loss of employer health overage by the employee or their family must be due to involuntary termination of employment, or due to a qualifying event.

    2. The loss of employer health coverage must have taken place between September 1,2008 and May 31, 2010.

    3. The federal subsidy must not exceed 65% of the COBRA premium and the remaining 35% must be paid by the assistance eligible individual. The 65% of the premium not paid by the assistance eligible individual is reimbursed to the employer maintaining the group health plan through a credit against payroll taxes. The credit is treated as a deposit made on the first day of the return period which reduces the employer's employment tax liabilities. Employers can apply the credit to offset their federal tax deposits, to generate a refund, or both.

    4. The federal subsidy for the assistance eligible individual must not exceed 15 months from the initial date of COBRA coverage.

3.11.13.21.11.1  (01-01-2015)
Line 8, Total Deposits for the year, Line 9a, COBRA assistance, Line 9b, Number of individuals provided
COBRA assistance, & Line 10, Add Lines 8 and 9a (Revision 2011 through 2013), or
Line 10, Total Deposits, Line 11a, COBRA assistance, Line 11b, Number of individuals provided, Line 12, Add Lines 10 and 11a. (Revision 2009 & 2010 only)

  1. Process Line 8 through Line 10 (Revision 2011 through 2013) or Line 10 through 12 (Revision 2009 or 2010) as follows:

    Note:

    Line references refer to Form 944, Form 944-PR, and Form 944-SS current revision, unless indicated.

    IF AND THEN
    Line 8 (Revision 2011 and subsequent) or Line 10 (Revision 2009 & 2010) is blank The taxpayer has an attachment indicating total deposits for the year Edit the amount to Line 8 (Revision 2011 & subsequent) or Line 10 (Revision 2009 & 2010)
    Line 9a (Revision 2011 through 2013) or Line 11a (Revision 2009 & 2010) has an entry other than zero, dash or "none " , Line 9b (Revision 2011 through 2013 ) or Line 11b (Revision 2009 & 2010) is blank, zero, dash or "none" , Correspond for Line 9b (Revision 2011 through 2013 ) or Line 11b (Revision 2009 & 2010). See Figure 3.11.13-64
    An amount is shown on Line 9a (Revision 2011 through 2013) or Line 11a (Revision 2009 & 2010) that is equal to the amount on Line 7 (Revision 2011 and subsequent) or Line 9 (Revision 2009 and 2010) , Line 8 (Revision 2011 and subsequent) or Line 10 (Revision 2009 & 2010) is blank, zero, dash or "none" ,
    1. For Revision 2011: Edit an asterisk (*) to the left of Line 9a (Revision 2011 through 2013)

    2. Edit the amount from Line 9a (Revision 2011) to Line 8.

    1. For Revision 2009 & 2010: Edit an asterisk to the left of Line 11a,

    2. Edit the amount from Line 11a Line 10,

    3. Also edit the Line 11a amount to Line 12 if blank.

      Note:

      For Revision 2010, if applicable, when editing Line 11a to 12, consider Line 11d entry, if any. to Line 8

    An entry is shown on Line 9b, (Revision 2011 through 2013) or Line 11b (Revision 2009 & 2010) other than zero, dash or "none" , Line 9a (Revision 2011 through 2013 ) or Line 11a (Revision 2009 & 2010) is blank, zero, dash or "none" , Correspond for Line 9a (Revision 2011 through 2013) or Line 11a (Revision 2009 & 2010)
    The entry on Line 9b (Revision 2011 through 2013) or Line 11b (Revision 2009 & 2010) is not in a numeric format,   Edit an asterisk (*) to the left of the entry and edit the numeric equivalent to the left of the asterisk.

    Exception:

    Notations of "zero" , "none" or "blank" do not need to be converted to a numeric equivalent.

    For Revision 2011 through 2013: Line 8 and 10 are the same amount,

    For Revision 2009 & 2010: Line 10, and 12 are the same amount,
    For Revision 2011 through 2013: Are the same amount as Line 7 and Line 11 or 12,

    For Revision 2009 & 2010: Are the same amount as Line 9 and 13 or 14,
    For Revision 2011 through 2013: Consider Line 8 and 10 as misplaced entries edit an asterisk (*) to the left of the entries.

    For Revision 2009 & 2010: Consider Line 10, and 12 as misplaced entries and edit an asterisk (*) to the left of the entries. See Figure 3.11.13-65.
    For Revision 2011 through 2013: Line 10 is blank, zero, dash or none,

    For Revision 2009 & 2010: Line 12 is blank, zero, dash or "none" ,
    For Revision 2011 through 2013: There are entries on Line 8 and/or 9a and 9b,

    For Revision 2009 & 2010: There are entries on Line 10 and/or 11a and 11b,
    For Revision 2011 through 2013: Compute Line 10 by adding Lines 8 and 9a.

    For Revision 2010: Compute Line 12 by adding Lines 10, 11a and 11e See Figure 3.11.13-66.

    For Revision 2009: Compute Line 12 by adding Lines 10 and 11a.
    For Revision 2011 through 2013: An amount is shown Line 10,

    For Revision 2009 & 2010: An amount is shown on Line 12,
    For Revision 2011 through 2013 There are entries on Line 8 and/or 9a and 9b,

    For Revision 2009 & 2010: There are entries on Line 10, 11a, and 11b
    For Revision 2011 through 2013:
    1. Verify the amount on Line 10 by adding Line 8 and 9a,

    2. If the amount on Line 10 is incorrect, edit an asterisk (*) to the left of the amount and edit the correct amount to the left of the asterisk.



    For Revision 2009 & 2010:
    1. Verify the amount on Line 12 by adding Line 10 and 11a, (and for Revision 2010 only, less Line 11e).

    2. If the amount on Line 12 is incorrect, edit an asterisk (*) to the left of the amount and edit the correct amount to the left of the asterisk.

    See Figure 3.11.13-67.
    For Revision 2011 through 2013 : A negative (or minus) amount is shown on Line 8 and 9a

    For Revision 2009 & 2010: A negative amount is shown on Line 10 and 11a,
    For Revision 2011 through 2013: Line 10 has a positive or negative amount,

    For Revision 2009 & 2010: Line 12 has a positive or negative amount,
    For Revision 2011 through 2013
    1. Verify the amount on Line 10 as a positive entry, by adding Line 8 and 9a as positive amounts.

    2. Line 10 is correct as a positive amount, edit Line 8, 9a and 10 as positive entries.

    3. Line 10 is not correct, correspond for an explanation of the entry on Line 10. Also, correspond for Line 9b, if needed.



    For 2009 & 2010:
    1. Verify the amount on Line 12 as a positive entry, by adding Lines 10 and 11a as positive amounts, (and for Revision 2010, if applicable, less Line 11e as a negative amount).

    2. Line 12 is correct as a positive amount, edit Line 10, 11a and 12 as positive entries.

    3. Line 12 is not correct, correspond for an explanation of the entry on Line 12. Also, correspond for Line 11b if needed, (and for Revision 2010, Line 11c or 11d, if needed).

    Figure 3.11.13-64

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    Figure 3.11.13-65

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    Figure 3.11.13-66

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    Figure 3.11.13-67

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3.11.13.21.11.2  (01-01-2015)
Line 11c, Number of Qualified Employees and Line 11d, Exempt Wages Paid March 19- March 31, Line 11e, Total Exempt Social Security Paid March 19–31, Line 12, Total Tax, (Revision 2010 only)

  1. Lines 11c, 11d and 11e are all transcription lines. Accept taxpayers figures as reported.

3.11.13.21.11.3  (01-01-2015)
Line 11, Balance Due, Line 12, Overpayment (Revision 2011 and subsequent) or Line 13, Balance Due (2010 and prior), Line 14, Overpayment (Revision 2010 and prior )

  1. Process Line 11 and 12 (Revision 2011 and subsequent) or Lines 13 and 14 (Revision 2010 and prior) as follows:

    Note:

    All line references refer to Form 944, (Revision 2011 and subsequent or 2010 or prior),

    IF AND THEN
    Line 11 and 12 (Revision 2011 and subsequent ) or Line 13 and 14 (Revision 2010 and prior) are blank, zero, dash or "none" Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) or Line 12 (Revision 2010 or prior) is blank, zero, dash or "none" Edit the Line 7 amount (Revision 2011 and subsequent) or Line 9 amount (Revision 2010 and prior) to Line 11 (Revision 2011 and subsequent) or Line 13 (Revision 2010 and prior)
    Line 7 (Revision 2011 and subsequent) or Line 9 (Revision 2010 and prior) is more than the amount on Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) or Line 12 (Revision 2010 and prior) Subtract Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) from Line 7 (Revision 2011 and subsequent) and enter the amount on Line 11 (Revision 2011 and subsequent) or subtract Line 12( Revision 2010 and prior) from Line 9 (Revision 2010 and prior) and enter the amount on Line 13 (Revision 2010 and prior). See Figure 3.11.13-68
    Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) is more than the amount on Line 7 (Revision 2011 and subsequent) or Line 12 (Revision 2010 and prior) is more than the amount on Line 9 Subtract Line 7 (Revision 2011 and subsequent) from Line (8 (Revision 2014) or Line 10 (Revision 2011 through 2013) and enter the amount on Line 12 (Revision 2011 and subsequent) or subtract Line 9 (Revision 2010 and prior) from Line 12 (Revision 2010 and prior) and enter the amount on Line 14 (Revision 2010 and prior)
    There are entries on both Line 11 (Revision 2011 and subsequent) and Line 12 (Revision 2011 and subsequent) and Line 7 (Revision 2011 and subsequent) equals Line 13m (Revision 2011 and subsequent) Total Liability for year or there are entries on both Line 13 (Revision 2010 and prior) and Line 14 (Revision 2010 and prior), and Line 9 (Revision 2010 and prior) equals Line 15m (Revision 2010 and prior) Total liability , for the year Line 7 (Revision 2011 and subsequent) is more than the amount on Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) or Line 9 (Revision 2010 and prior) is more than the amount on Line 12 (Revision 2010 and prior) Edit an asterisk (*) to the left of the incorrect entry on Line 12 (Revision 2011 and subsequent) or Line 14 (Revision 2010 and prior) .
    Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) is more than the amount on Line 7 (Revision 2011 and subsequent) or Line 12 (Revision 2010 and prior ) is more than the amount on Line 9 (Revision 2010 and prior) Edit an asterisk (*) to the left of the incorrect entry on Line 11 (Revision 2011 and subsequent) or Line 13 (Revision 2010 and prior). See Figure 3.11.13-69 .
    The entry on Line 11 (Revision 2011 and subsequent) belongs on Line 12 (Revision 2011 and subsequent) and the amount on Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) is more than the amount on Line 7( Revision 2011 and subsequent) or the entry on Line 13 (Revision 2010 and prior) belongs on Line 14 (Revision 2010 and prior) and the amount on Line 12 (Revision 2010 and prior) is more than the amount on Line 9 (Revision 2010 and prior), The taxpayer indicates a refund is due by placing parenthesis around the amount on Line 11 (Revision 2011 and subsequent) or Line 13 (Revision 2010 and prior) , or by checking the "Refund" box or "Apply to next return" box Edit an asterisk (*) to the left of the amount on Line 11 (Revision 2011 and subsequent) and edit the amount to Line 12 (Revision 2011 and subsequent) or Line 13 (Revision 2010 and prior) and edit the amount to Line 14 (Revision 2010 and prior).
    A negative amount is shown on Line 11 (Revision 2011 and subsequent) and/or Line 12 (Revision 2011 and subsequent) and entries are shown on Line 7 (Revision 2011 and subsequent) and/or Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) or Line 13 (Revision 2010 and prior) and/or Line 14 (Revision 2010 and prior) and entries are shown on Line 9 (Revision 2010 and prior) and/or Line 12 (Revision 2010 and prior), Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) or Line 12 (Revision 2010 and prior) is blank, zero, dash or "none" , Edit the Line 7 amount (Revision 2011 and subsequent) to Line 11 (Revision 2011 and subsequent) or Edit the Line 9 amount (Revision 2010 and prior) to Line 13 (Revision 2010 and prior)
    Line 7 (Revision 2011 and subsequent) is more than the amount on Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) or Line 9 (Revision 2010 and prior) is more than the amount on Line 12 (Revision 2010 and prior), Subtract Line 7 (Revision 2011 and subsequent) from Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) and enter the amount to Line 11 (Revision 2011 and subsequent) or subtract Line 9 (Revision 2010 and prior) from Line 12 (Revision 2010 and prior) and enter the amount to Line 13 (Revision 2010 and prior).
    Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) is more than the amount on Line 7 (Revision 2011 and subsequent) or Line 12 (Revision 2010 and prior) is more than the amount on Line 9 (Revision 2010 and prior). Subtract Line 8 (Revision 2014) or Line 10 (Revision 2011 through 2013) from Line 7 (Revision 2011 and subsequent) and enter the amount on Line 12 (Revision 2011 and subsequent) or Subtract Line 12 (Revision 2010 and prior) from Line 9 (Revision 2010 and prior) and enter the amount on Line 14 (Revision 2010 and prior)

    Figure 3.11.13-68

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    Figure 3.11.13-69

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3.11.13.21.12  (01-01-2015)
Line 13, Monthly Summary of Federal Tax Liability (Revision 2011 and subsequent ) or Line 15 (Revision 2009 & 2010) and Form 945–A Annual Record of Tax Liability - Schedule Indicator Code (SIC)

  1. When Line 7, Total Taxes After Adjustments (Revision 2011, or Line 9 on Revision 2009 and 2010), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , the taxpayer is required to complete a Record of Federal Tax Liability (ROFTL). Depending on their tax liability in previous years, the taxpayer should complete Line 13 (Revision 2011 and subsequent ), or Line 15, (Revision 2009 and 2010) , Monthly Summary of Federal Tax Liability, or Form 945-A, Annual Record if Federal Tax Liability. The taxpayer should indicate by the check boxes by Line 13 (Revision 2011 and subsequent , or Line 15, Revision 2009 and 2010) which ROFTL they are to complete.

  2. The Schedule Indicator Code (SIC) is used by Code and Edit to remove the requirement for data entry to capture the ROFTL information when it is determined the ROFTL is unnecessary incomplete or outside of the tolerance.

  3. When determining if a SIC code should be edited,

    IF THEN
    Revision 2011 and subsequent
    1. Use Line 7.

    2. If line 7 is blank, Compute Line 7 by combining Lines 5 and 6.

    Revision 2009 or 2010
    1. Use Line 9.

    2. If Line 9 is blank, and there is an amount on Line 8, compute Line 9 by subtracting Line 8 from line 7.

    3. If Lines 8 and 9 are blank, use Line 7.

  4. If a SIC needs to be entered on the return, edit the applicable SIC in the right margin, at the end of the "Part 1: Answer these questions..." line (Form 944).
    Apply the SIC to the return using the following chart:

    SCHEDULE INDICATOR CODE (SIC) CHART
    SIC CODE CONDITIONS
    1 Edit SIC 1 when:
    1. Line 7, (Revision 2011, or Line 9, Revision 2010)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Line 7, (Revision 2011, or Line 9, Revision 2010)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the ROFTL is incomplete,

    3. The return shows all zeros or is non-taxable.

    4. Negative or minus (-) amount appears in the ROFTL (Form 944, Line 13 (Revision 2011 and subsequent, or Line 15, Revision 2010) and/or Form 945-A ).

    5. Return prepared under IRC § 6020(b).

    Note:

    If the taxpayer completes both the ROFTL (Form 944, Line 13, Revision 2011 and subsequent or Line 15, Revision 2010) and Form 945-A, only edit SIC 1 if both are not to be entered by ISRP.

3.11.13.21.13  (01-01-2015)
Perfecting Line 13, (Revision 2008, 2011 and subsequent, or Line 15, Revision 2009-2010) and Form 945-A

  1. Perfect Line 13, (Revision 2008, 2011 and subsequent, or Line 15, Revision 2009- 2010) or Form 945-A as follows:

    IF THEN
    The taxpayer completes more than one Form 945-A, Combine the Daily Tax Liabilities from each Form 945-A to one Form 945-A and "/" (line through) the Forms 945-A that are not to be entered.
    Form 944, Line 13a through 13l, (Revision 2011 and subsequent, or Line 15a through 15l, Revision 2010) are blank but Form 945-A has only monthly amounts,
    1. Edit the monthly totals from Form 945-A to the applicable monthly line(s) of the ROFTL on Form 944, i.e. Line 13a through 13l, Revision 2011, or Line 15a through 15l, Revision 2010.

    2. Line through "(/)" Form 945-A.

    The taxpayer competes both ROFTL - Form 944, Line 13A through 13M, (Revision 2011, or Line 15A through 15M, Revision 2010) and Form 945-A • ISRP will pick up both entries and Master file will determine the correct entry.
    • If a negative or minus (-) amount appears on Form 944, Line 13A through 13M, (Revision 2011, or Line 15A through 15M, Revision 2010) , line through the ROFTL with the negative or minus (-) to ensure it will not be captured.
    The taxpayer does not complete the ROFTL area on Form 944, but completes an attachment in the same format as the ROFTL or the Form 945-A, Put the attachment or Form 945-A immediately behind the Form 944. Do not write the taxpayers figures in the ROFTL area.
    Form 945-A shows an entry for a day which is not in that month (i.e. an entry for February 29th, and it is not leap year),
    1. Asterisk (*) to the left of the entry,

    2. Enter the amount to the last valid day of the month,

    3. If an entry already exists in the field, add the amounts together. Asterisk (*) to the left of the taxpayer's entry and enter the result to the left of the asterisk. (An exception would be more than one entry on the same line, add figures together, and put the total to the left of the line).

3.11.13.21.14  (01-01-2015)

Line 14, State Deposit Code (Revision 2011), or
Line 16, State Deposit Code (Domestic and 944(PR) Only)

  1. The taxpayer enters a State Deposit Code on the return to indicate that their deposits were made to a bank in a State, other than the State shown in the entity address on the front of the return. This State entry was used when computing a Federal Tax Deposit penalty to integrate State banking holidays into the computation.

  2. Beginning Tax Year 2012 (Revision 2012) Line 14 is removed and Line 15 was renumbered to Line 14 final date you paid wages.

3.11.13.21.15  (01-01-2015)
Line 14 (Revision 2012 and subsequent) "Final Date you paid wages" , or
Line 15, (Revision 2011) -"Final Return" Check Box, and "Final Date you paid wages" box, or
Line 17 (Revision 2009 & 2010)

  1. If the taxpayer has checked the "If your business has closed or you have stopped paying wages" box, edit a CCC F. See IRM 3.11.13.10.3 Non-Taxable Returns With No Line Entries.

  2. If the taxpayer indicates in another location on the return, or in an attachment, that the return being filed is their final return with a notation such as (but not limited to) "Final," "Out of Business" , "No Longer Have Employees" , "Deceased" , "Liquidation" , "Dissolved" , etc. then the "Final Return" box on Line 14 (Revision 2012 and subsequent), Line 15 (Revision 2011) , or Line 17( Revision 2009 and 2010) should be checked and a date when final wages were paid should have been provided.

    Note:

    Do not edit CCC F, if the date of Final Wages is after the last day of the return's tax period.

  3. If the taxpayer did not check the box, the Code and Edit examiner should check the box and edit a CCC F in the designated location.

  4. If the taxpayer did not provide a date when final wages were paid, and the return shows tax data, then correspond for the Date of Final Wages. Otherwise, if the return shows no tax data, DO NOT correspond for the Date of Final Wages, unless corresponding for a missing signature.

3.11.13.22  (01-01-2015)
Form 945, Annual Return of Withheld Federal Income Tax - General

  1. Form 945 is used to report income tax withheld from non-payroll payments. Non-payroll payments include the following:

    • Backup withholding

    • Pensions and annuities,

    • IRA distributions,

    • Military retirement,

    • Gambling winnings,

    • Voluntary withholding on government payments,

    • Indian Gaming Revenues Distributed to Tribal Members.

  2. Certain companies (such as, life insurance companies) sell annuity contracts to participants in "non-qualified" plans (for example, IRC §457 plans). Generally, distribution from these contracts are payments of deferred wages, reportable on a Form W–2 and subject to wage withholding. These annuity contracts must be filed on a Form 941 return, not on Form 945. If it can be determined that a Form 941 should have been filed, correspond with the taxpayer explaining that it was wages from a deferred plan subject to wage withholding and must be reported on Form 941.

  3. If Form 945 is received with sick pay information on the return, correspond with the taxpayer requesting clarification. (Sick pay is not reported on Form 945.)

  4. ISRP display screens allow for Form 945 prior year revision (2008 and prior) forms, or revisions (2009 and subsequent) forms to be processed. Form 945 (all revisions) require no special editing or renumbering of lines.

  5. Domestic and Foreign consideration of Forms 945:

    1. Domestic - Form 945: Employers whose principal place of business is in the U.S.

    2. Foreign- Form 945: with a foreign (international) address that is not in the 50 states or the District of Columbia (OSPC ONLY - FOREIGN ADDRESS ONLY)

  6. Foreign Return Processing:

    1. All Forms 945, with a foreign address or an address of an U.S. Possession should be processed at the Ogden Submission Processing Campus (OSPC). If these returns are received in any other Submission Processing Campus, they must be transshipped to OSPC. Army Post Office (APO) and Fleet Post Office (FPO) are not considered foreign addresses.

    2. If the return is unnumbered, withdraw it from the batch and prepare Form 13195 requesting the Letter 86C be sent to the taxpayer. Attach a Form 4227 for routing to OSPC.

    3. If the return is numbered, use AC 650.

    4. The instructions provided for Form 945 returns filed with foreign or American possession addresses should be followed to the extent possible to process these returns.

      Note:

      Do not send these returns back for missing signature, initiate Letter 21C.

  7. Form 945 returns which have been early filed before the end of the tax year (TY), (e.g., TY 2012 returns filed on or before December 31, 2012) must be held until the first cycles of the next year (2013). Use Action Code 480.

3.11.13.22.1  (01-01-2015)
Perfecting Form 945 Returns

  1. Form 945 will be edited using normal editing procedures. See Exhibit 3.11.13-7 for the transcription lines.

  2. Enter all money amounts in DOLLARS AND CENTS unless directed otherwise.

  3. Perfect for validity only. All alpha words must be written in numeric format.

    Note:

    It is not necessary to convert notations of "none" , "zero" or "blank" to a numeric equivalent.

  4. Any transaction lines which are not legible or incorrect, should be corrected by placing an asterisk (*) to the left of the entry

  5. Finalizing Form 945: If the taxpayer has checked the "If you do not have to file returns in the future" box, or has indicated in another location on the return or attachments that the return is a final, process as follows:

    IF AND THEN
    Date of final payments present, Falls within the tax period being filed for, Edit CCC F.
    Date is after the last day of the tax period being filed for, DO NOT edit CCC F.
    No Date of final payments present, Return shows tax data, Correspond for the date of final payments.
    Return shows no tax data, Edit CCC F.

    Note:

    See IRM 3.11.13.10.3 Non-Taxable Returns With No Line Entries.

3.11.13.22.2  (01-01-2015)
State Deposit Code

  1. Beginning Tax Year 2012 (Revision 2012) the text regarding the use of the state code box and the state code box for where deposits are made has been removed. Only legal holidays in the District of Columbia can delay a deposit.

  2. The taxpayer enters a State Deposit Code on the return to indicate that their deposits were made to a bank in a State, other than the State shown in the entity address on the front of the return. This State entry was used when computing a Federal Tax Deposit penalty to integrate State banking holidays into the computation (Revision 2011 or prior).

3.11.13.22.3  (01-01-2015)
Line 1, Federal Income Tax Withheld from Pensions, Annuities, IRAs, Gambling Winnings, etc.

  1. The taxpayer will report the total of income tax that was withheld on pensions, annuities, IRAs, military retirement, certain government payments, Indian Gaming Revenues Distributed to Tribal Members, and gambling winnings.

  2. Ensure all entries are numeric and in dollars and cents. If the taxpayer enters dollars only, accept taxpayer's entries.

  3. Line 1 can be blank, zero, or any amount.

3.11.13.22.4  (01-01-2015)
Line 2, Backup Withholding

  1. The taxpayer will report any backup withholding, including backup withholding on gambling.

  2. Ensure all entries are numeric and in dollars and cents. If the taxpayer enters dollars only, accept taxpayer's entries.

  3. Line 2 can be blank, zero, or any amount.

3.11.13.22.5  (01-01-2015)
Line 3, Adjustment to Correct Administrative Errors (Revision 2008 and prior)

  1. A taxpayer may enter an amount on Line 3 (Revision year 2008 and prior) as a positive, negative or minus amount.

  2. If a Form 945, Revision Year 2008 or prior is received, visually review the tax year to determine the taxpayer's intent. If the tax year being filed for is 2008 or prior, route the return to Statutes.

    1. If there is an entry on Line 3, asterisk (*) to the left of the entry on Line 3.

3.11.13.22.6  (01-01-2015)
Line 3, Total Taxes (Revision 2009 & subsequent)

  1. This line represents the total taxes reported on the return. If Line 1 and/or Line 2 contain entries, (or an entry) there should be an entry on Line 3. Process Line 3 as follows:

    IF THEN
    Line 3 is blank, zero, dash or "none" and there are amounts on Lines 1 and 2 , Add Lines 1 and 2. Enter the result on Line 3.
    Line 1, 2, and 3 are blank and there is an entry on Line 7M , Edit the amount on Line 7M to both Lines 1 and 3 .
    Line 3 has an amount and Lines 1, and 2 are blank, zero, or "none" , Edit the Line 3 amount to Line 1 and continue to process the return.
    Line 3 and Line 2 have the same amount and Line 1 is blank, Continue to process the return.
    Line 3 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Edit SIC 1 and continue to process the return.

3.11.13.22.7  (01-01-2015)
Line 4, Total Deposits, Line 5, Balance Due, and Line 6, Overpayment (Revision 2009 and Subsequent).

  1. Perfect Line(s) 4, 5, or 6 as follows :

    IF THEN
    Line 4 is less than Line 3 and Line 5 is blank, zero, dash or none, Compute Line 5.
    Line 4 is less that Line 3, and there are entries on Line 5 and 6, Asterisk (*) to the left of the entry on Line 6.
    Line 4 is more than Line 3, and there are entries on Line 5 and 6, Asterisk (*) to the left of the entry on Line 5.
    Line 4 is blank, and you are able to determine which entry Line 5 and 6 is correct, Do not edit.
    The entry on Line 5 belongs on Line 6 , and the taxpayer indicates they expect a refund by indicating parenthesis or brackets around the amount on Line 6, indicating a minus (-) after the amount, or by checking the "Refund" box or "Applied to Next Return" box below Line 5, Edit the Line 5 amount to Line 6 and continue to process the return.
    Line 3 and 4 are the same, Asterisk (*) to the left of any entries on Line(s) 5 or 6.

3.11.13.22.8  (01-01-2015)
Line 7, Monthly Summary of Federal Tax Liability and Form 945-A (ROFTL) (Revision 2009 and Subsequent) and Schedule Indicator Code (SIC), Line 8 (Revision 2008 and prior)

  1. When Line 3 (Revision 2009 and subsequent) (Line 4 (Revision 2008 and prior), Total Taxes, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , the taxpayer is required to complete a Record of Federal Tax Liability (ROFTL). Depending on their tax liability reported for previous years, the taxpayer should complete Form 945, Line 7 (Revision 2009 and subsequent) (Line 8 (Revision 2008 and prior) or Form 945-A, "Annual Record of Federal Tax Liability. " The taxpayer will indicate in the check boxes between Line 6 , 7 and 8 which ROFTL they are to complete.

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

  3. When determining whether a SIC code should be edited, use line 3 (Revision 2009 and subsequent) (line 4 (Revision 2008 and prior). If Line 3 is blank, compute Line 3 by combining the entries (or entry) on line 1 and 2. If Line 4 (Revision 2008 and prior) is blank compute Line 4 by combining the entries (or entry) on line 1, line 2 and 3.

  4. If a SIC needs to be entered on the return, edit the applicable SIC in the right margin at the end of Line A (above Line 1), "If you do not have to file..." .

    SIC CODE CONDITIONS
    1 Edit SIC 1 when:
    1. Line 3 (Revision 2009 and subsequent) or Line 4 (Revision 2008)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and ROFTL is incomplete, (i.e. Form 945, Line 7 or Form 945-A, Line M is incomplete).

    2. Line 3 (Revision 2009 and subsequent) or Line 4 (Revision 2008)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    3. The return shows all zeros or is non-taxable.

    4. A negative or minus (-) amount appears in the ROFTL.

    5. Return prepared under IRC § 6020(b).

    Note: If the taxpayer completed both the Return ROFTL and Form 945-A, only edit SIC 1 if both are not to be entered by ISRP.

3.11.13.22.9  (01-01-2015)
Perfecting Line 7 (Revision 2009 and Subsequent) or Line 8 (Revision 2008 or prior)

  1. If Line 3 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Line 7A through 7M or Form 945-A do not need to be completed or Line 4 (Revision 2008 or prior) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ lines 8A through M or Form 945-A do not need to be completed.

  2. If Line 3 (Revision 2009 and subsequent) or Line 8 (Revision 2008 or prior)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , perfect Line 7(Revision 2009 and subsequent) (Line 8 (Revision 2008 or prior) or Form 945-A as follows:

    IF THEN
    The taxpayer has completed both Form 945, Line 7A through 7M (Revision 2009 and subsequent), Line 8A through 8M (Revision 2008 and prior) and Form 945-A, ISRP will pick up both (Form 945, Line 7A - 7M and Form 945-A ) (Line 8a-8M) entries and Master File (MF) will determine the correct entry.
    • If a negative or minus (-) amount appears on Form 945, Line 7A - 7M or Form 945-A, line through the ROFTL with the negative or minus (-) to ensure it will not be entered by ISRP.

    Note:

    Enter a SIC 1 only if both the Form 945, Line 7A through 7M (Revision 2009 and subsequent) (Line 8A through 8M (Revision 2008 and prior), and the Form 945-A are not to be entered.

    The taxpayer completes more than one Form 945-A, Combine the Daily Tax Liabilities from each Form 945-A to one Form 945-A and "/" (line through) the Forms 945-A that are not to be entered.
    Form 945, Line 7A through 7M (Revision 2009 and subsequent) or Line 8A through 8M (Revision 2008 and prior) are blank but Form 945-A has only monthly amounts, Edit the monthly totals from Form 945-A to the applicable monthly line(s) of the ROFTL i.e. Line 7.
    The taxpayer does not complete the ROFTL area of Form 945, but completes an attachment in the same format as the ROFTL or the Form 945-A, Put the attachment or Form 945-A immediately behind the Form 945. Do not write the taxpayer figures in the ROFTL area.
    Form 945, Line 7A through 7L are entered, but Line 7M (Revision 2009 and subsequent) is blank or line 8A through 8L are entered, but line 8M (Revision 2008 and prior) is blank, Total the Line 7A through 7L. Then, enter the result on Line 7M or Total the lines 8A through 8L. Then, enter the result on line 8M.
    Form 945-A shows an entry for a day which is not in that month, e.g., an entry for February 29th, and it is not a leap year,
    1. Asterisk (*) to the left of the entry,

    2. Enter the amount to the last valid day the month.

    3. If an entry already exists in the field, add the amounts together. Asterisk (*) to the left of the taxpayer's entry and enter the new amount. (An exception would be more than one entry on the same line, add the figures together and put the total to the left of the line.

  3. Combine multiple deposits shown on the same line and enter the correct amount to the left of the asterisk (*).

3.11.13.23  (01-01-2015)
Form CT-1, Employer's Annual Railroad Retirement Tax Return (CSPC only)

  1. Form CT-1, Employer's Annual Railroad Retirement Tax Return, processing is performed only at the Cincinnati Submission Processing Campus (CSPC). If any Form CT-1 returns are received at any other campus, transship to CSPC.

  2. An employer reports taxes imposed by the Railroad Retirement Tax Act (RRTA) on Form CT-1. Railroad employment is subject to a separate and distinct system of taxes from those imposed under FICA (i.e., social security and Medicare taxes) which covers most other employees. There are two levels of taxes or "tiers." Tier 1 provides equivalent social security and Medicare benefits and tier 2 provides a private pension benefit. See Exhibit 3.11.13-8, for Form CT-1, Revision 2012 transcription lines. For Revision 2010 transcription lines, See Exhibit 3.11.13-9.

  3. All editing is done on the return using normal editing procedures.

  4. Edit all fields in DOLLARS AND CENTS, unless otherwise directed.

  5. Finalizing Form CT-1 : Enter CCC "F" if the taxpayer gives any positive indication they are filing a final return. See IRM 3.11.13.10.3 Non-Taxable Returns With No Line Entries.

  6. If Form CT-1 is received with a Form 8275-R (Regulation Disclosure Statement) attached:

    1. Photocopy the CT–1 and Form 8275-R.

    2. Route the photocopies to Compliance (Examination). They will forward the photocopies to the appropriate Territorial Office.

    3. Code and Edit will process the original return.

3.11.13.23.1  (01-01-2015)
Examining Form CT-1 Return Data

  1. For 2014- We have a new line 6- Tier 1- Employee Additional Medicare Tax to calculate Additional Medicare Tax on compensation other than sick pay that exceed $200,000 during the year at a rate of 0.9% (.009). Section 3201(a) in reference to section 3101(b)(2), as added by P.L. 111-148, sections 9015 & 10906, and further amended by section 1402(b) of P.L. 111-152.

  2. We also have a new line 12- Tier 1- Employee Additional Medicare tax- Sick pay to calculate Additional Medicare Tax on sick pay that exceeds $200,000 during the year at a rate of 0.9%. An employer will combine compensation and sick pay to determine if the $200,000 withholding threshold is met. Section 3201(a) in reference to section 3101(b)(2), as added by P.L. 111-148, sections 9015 & 10906, and further amended by section 1402(b) of P.L. 111-152. All subsequent lines have been renumbered.

  3. Forms CT-1 (Revision 2012 and prior) do not need the lines renumbered during processing year 2014. Form CT-1, Revision 2012, 2011, 2009 and prior have the same line format. Revision 2010 has additional lines which do not appear on any other revision, but ISRP maintains a screen display for the 2010 revision for transcription. .

    Caution:

    If the Form CT-1 being processed is a revision 2010, and there are entries on lines 1a through 1f, or lines 7c or 7d, review the return tax period to ensure it is being filed for tax year 2010. If the tax year is other than 2010, place an asterisk (*) to the left of the entry.

  4. The Form CT-1 (Revision 2010) additional lines were due to the "Hiring Incentives to Restore Employment (HIRE) Act" . Employers who hired unemployed workers between February 3, 2010, and December 31, 2010, qualified for a payroll tax exemption for Tier 1- Employer, Tax on Compensation paid to qualified employees from March 19, 2010, through December 31st, 2010.

  5. See IRM 3.11.13.23.2"Employer-Employee" rate chart. Verify all Form CT-1 returns using the appropriate rate.

  6. If the taxpayer's entry on any of the lines is not legible, then place an asterisk (*) to the left of the taxpayer's entry and enter the correct figure.

  7. Semiweekly depositors should complete and attach Form 945-A, Annual Record of Federal Tax Liability.

3.11.13.23.2  (01-01-2015)
Lines 1 (Tier l - Employer Tax) through 10 (Tier l- Employee Medicare Tax–Sick Pay)

  1. There must be entries on Lines 1 through 10, Revision 2013, 2012, 2011 2009 and prior, or Revision 2010 Lines 1a, 1f, 2 through 6, 7a, and 7e through 10

    IF THEN
    There are entries in the tax area, but no entries in the Compensation area, Divide the tax entry shown by the appropriate factors in the "Employee–Employer" chart below. Enter the compensation figures for each line.

    Employer-Employee Tax Rate

    Return Tax Year Description Percentage Rate Rate Factor
    2002 Employer Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier l- Medicare (Wages) 1.45 68.9655
    Tier ll- Compensation
    (Wages & Sick Pay)
    15.6 6.4103
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Employee Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare -(Wages) 1.45 68.9655
    Tier ll- Compensation (Tips) 4.9 20.4082
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare - (Sick Pay) 1.45 68.9655
    2003 Employer Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier l- Medicare (Wages) 1.45 68.9655
    Tier ll- Compensation
    (Wages & Sick Pay)
    14.2 7.04225
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Employee Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare -(Wages) 1.45 68.9655
    Tier ll- Compensation (Tips) 4.9 20.4082
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare - (Sick Pay) 1.45 68.9655
    2004 Employer Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare (Wages) 1.45 68.9655
    Tier ll- Compensation
    (Wages & Sick Pay)
    13.1 7.6336
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Employee Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare -(Wages) 1.45 68.9655
    Tier ll- Compensation (Tips) 4.9 20.4082
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare - (Sick Pay) 1.45 68.9655
    2005 through 2010 Employer Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare (Wages) 1.45 68.9655
    Tier ll- Compensation
    (Wages & Sick Pay)
    12.1 7.9365
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Employee Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare -(Wages) 1.45 68.9655
    Tier ll- Compensation (Tips) 3.9 22.7272
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    2011 and 2012 Employer Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare (Wages) 1.45 68.9655
    Tier ll- Compensation
    (Wages & Sick Pay)
    12.1 7.9365
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Employee Tax
    Tier 1- Compensation (Wages) 4.2 23.8095
    Tier 1- Medicare (Wages) 1.45 68.9655
    Tier ll- Compensation
    (Wages & Sick Pay)
    12.1 7.9365
    Tier 1- Sick Pay 4.2 23.8095
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    2013-2014 Employer Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare (Wages) 1.45 68.9655
         
    Tier ll- Compensation
    (Wages & Sick Pay)
    12.6 Not Available
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Employee Tax
    Tier 1- Compensation (Wages) 6.2 16.1290
    Tier 1- Medicare (Wages) 1.45 68.9655
    Tier 1- Additional Medicare Taxes 0.9 .9235
    Tier ll- Compensation
    (Wages & Sick Pay)
    12.6  
    Tier II - Compensation (Tips) 4.4 Not Available
    Tier 1- Sick Pay 6.2 16.1290
    Tier 1- Medicare (Sick Pay) 1.45 68.9655
    Tier 1- Additional Medicare (Sick Pay) 0.9 .9235
  2. If Lines 1 through 10 cannot be perfected, Revision 2014, 2013, 2012, 2011, 2009 and prior, (or Revision 2010 Lines 1a, 1f, 2 through 6, 7a ,and 7e through 10), initiate correspondence to secure the missing data. Enter AC 211 on the return.

    IF THEN
    The taxpayer provides what appears to be an inadequate reply, or does not reply,
    1. Enter the amount on Line 1 to Line 2, (Revision 2014, 2013, 2012, 2011, 2009 and prior, or for Revision 2010, Lines 1a, 1f, and 2)

    2. Revision 2012, 2011 2009 and prior-Enter the Line 1 amount on Lines 3, 4, 5, and 6, if they are blank.

    3. Revision 2010- Enter the Line 1a amount on Lines 3, 4, 5, and 6.

      Note:

      If taxpayer replies that the organization is not liable for Tier II tax (Lines 3 and 6), do not enter an amount on these lines.

  3. Lines 1c, 1d and 1e are all transcription lines for Form CT-1 for tax year 2010. Accept taxpayer's figures and correspond if Line 1e has an amount reported (other than zero, dash or none) and Lines 1c and/or 1d are blank.

  4. Lines 7 through 10 (Revision 20012, 2011) or Lines 7a, 7c, 7e, and 8 through Line 10, (Revision 2010) are used to report sick pay paid by an employer or third-party payer and is subject to Tier I tax. Accept any figure(s) on these lines.

3.11.13.23.3  (01-01-2015)
Line 13, Total Based on Compensation (Add Lines 1 through 12 (Revision 2013 and 2014)) Line 11, Total Tax Based on Compensation (Add Lines 1 through 10) (Revision 2012 and 2011)

  1. Line 13 (Revision 2014, 2013) or Line 11 (Revision 2012-2011) is not a transcription line. Compute only if needed to compute Line(s) 16,17 or 18 (Revision 2013) or Line(s) 14, 15 or 16 (Revision 2012-2011).

3.11.13.23.4  (01-01-2015)
Line 14, Adjustments to Employer and Employee Railroad Retirement Taxes Based on Compensation (Revision 2014 and 2013) or Line 12, Adjustments to Employer and Employee Railroad Retirement Taxes Based on Compensation (Revision 2012-2011)

  1. If Form CT-1X is attached, see IRM 3.11.13.16 for processing procedures.

  2. Tax Period 2008 and prior, or 2011 and subsequent process as follows:

    IF AND THEN
    An Increase amount is shown on Line 14 (Revision 2014 - 2013) or Line 12 (Revision 2012-2011),   Accept the entry as shown.
    A decrease amount is shown on Line 14 (Revision 2014 - 2013) or Line 12 (Revision 2012-2011) , There is an indication of Sick Pay or Fractions of Cents (Fractions), Accept the entry as shown.
    An explanation is attached, Accept the entry as shown.
    An explanation is not attached,
    1. Asterisk (*) to the left of the adjustment amount.

    2. Edit the CT-1 with an Action Trail "CP102 CT-1X"

    3. Continue to process the return.

  3. Tax Period 2010 and subsequent entries on Line 14 (Revision 2014 - 2013) or Line 12 (Revision 2012 or prior) can be positive or negative with out requiring support for the entry.

  4. See IRM 3.11.13.16, 94X Adjusted Return Procedures, when:

    • A prior year (PY) revision (2008 and prior) filed for a 2009 and subsequent Tax Period showing an amount on Line 14 (Revision 2013) or Line 12 (Revision 2012 or prior)

    • Form CT-1 with a Form 94X attached

  5. Any increase on Line 14 (Revision 2013) or Line 12 (Revision 2012 or prior) during the current tax year (TY) adjusting prior year (PY) compensation is taxable at the current year tax rates.

  6. Credit may be taken on Line 14 (Revision 2013) or Line 12 (Revision 2012 or prior) for any uncollected Railroad Retirement tax due on taxable tips currently reported, provided the employer attaches a statement stating sufficient wages or funds were not available from the tax withheld. If such a statement is not attached, correspond for an explanation of the credit.

3.11.13.23.5  (01-01-2015)
Line 15 (Revision 2014-2013) through Line 18 (Revision 2014-2013) or Line 13 (Revision 2012-2011), Total Railroad Retirement Taxes Based on Compensation, through Line 16, Overpayment- Revision 2009 and Prior, and 2011 and subsequent,
Line 13 through Line 18 - Revision 2010.

  1. If Line 15 (Revision 2014-2013) or Line 13 (Revision 2012-2011) is blank, zero or "none" , compute by adding Lines 13 and 14 (Revision 2014-2013) or Lines 11 and 12 (Revision 2012-2011).

    Note:

    Transcribe FTD credit from Line 16 (Revision 2014-2013) and the Balance Due/Overpayment from Lines 17 and 18 (Revision 2014-2013) or Transcribe FTD credit from Line 14 (Revision 2012-2011) and the Balance Due/Overpayment from Lines 15 or 16.

  2. Lines 15a - 15c are transcribed on Forms CT-1 for tax year 2010. If 15c indicates an amount (other than dash, none or zero) and Line 15a and/or 15b is blank, correspond for the missing information.

  3. If a pre-computed penalty or interest is shown on the return by the taxpayer:

    1. Perfect Line 17 (Revision 2014-2013) or Line 15 (Revision 2012, 2011 , 2009 and prior, or Line 17, Revision 2010) Balance Due Amount to exclude the penalty and/or interest amount from the return.

    2. Perfect Line 18 (Revision 2014-2013) or Line 16 (Revision 2012, 2011 2009 and prior, or Line 18, Revision 2010) Overpayment Amount to include the penalty and/or interest amount on the return.

3.11.13.24  (01-01-2015)
♦Amended Returns♦

  1. An amended return may be identified by such words as "Amended" , "Corrected" , "Supplemental " , "Duplicate" , "Additional" , or any other positive indication that the taxpayer has filed previously. Filing a "Copy" of a return is not sufficient reason to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

  2. Examine the return for attachments. Do not separate any related attachments from the return the taxpayer has submitted to explain the reason for the Amended return; this information will be used by AM. Detach any unrelated documents and route them to the appropriate function using Form 4227. Edit an Action Trail on the return.

  3. There is an indication the return is amended and:

    IF THEN
    TC 59X or ICS was entered on the return by Compliance services, Do not edit CCC "G" .
    Process the return as an original.
    The return is stamped "Delinquent Original Cleared for Processing" by Statute,
    Form 3893 or 13596 is attached, Do Not edit CCC "G" .
    None of the above are present, Forward Return to Accounts Management (AM).

    Note:

    The Receipt and Control function within all BMF Submission Processing Campuses were mandated to locally develop sort procedures for non-remittance Employment Returns marked "Amended" or "Corrected" . After sorting, these returns are forwarded to Accounts Management (AM) for their consideration. Therefore, if a non-remittance return marked "Amended" or "Corrected" is received within Code and Edit, do not perfect the return; forward the return to AM. This is a minimum acceptable standard. Additionally, Code and Edit may receive returns with "Amended" or "Corrected" circled. DO NOT FORWARD THESE RETURNS TO AM. These returns are being re-input as original returns by AM. Therefore, continue to perfect these return using the Code and Edit procedures provided in IRM 3.11.13. See Figure 3.11.13-70

    Figure 3.11.13-70

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  4. The following data must be present on all amended returns:

    • Name Control

    • EIN

    • Tax Period

    • Received Date

    • Signature

    Caution:

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

3.11.13.25  (01-01-2015)
Early-Filed Returns Quarterly and Annual

  1. An Early-Filed quarterly return is defined as a filed return where the Tax Period Beginning Date, is after the current (received) date.

    Reminder:

    Circle out all Received Dates present on an Early-Filed return.

  2. An Early-Filed annual employment return is defined as a filed return where the Received Date is prior to the Tax Period Ending date.

    Reminder:

    Circle out all Received Dates present on an Early-Filed return.

  3. Below are the procedures to process an Early Filed Return:

    Note:

    When correspondence issues are present on a Early Filed return, edit the Correspondence Action Code to the return and edit the Suspense Action Code (AC 480) on Form 4227.

    Exception:

    See IRM 3.11.13.12.4.1 if Multiple Tax Periods are indicated.

    IF THEN
    The return is Early-Filed and is not a "Final" ,

    Note:

    For Form 941, follow IRM 3.11.13.12.4.1, IF/THEN table procedures.

    1. Edit Action Code 480 in the left hand side of the bottom margin of the return,

    2. Leave return in batch and continue processing.

    The return is Early-Filed and a "Final" ,
    1. Edit CCC "F" on the return,

    2. Edit Action Code 480 in the left hand side of the bottom margin of the return,

      Note:

      Edit Action Code 480 only when the criteria for the applicable return tax period stated in (1) or (2) has been met.

    3. Leave return in batch and continue processing.

      Note:

      See IRM 3.11.13.10.3 Non-Taxable Returns With No Line Entries.

3.11.13.26  (01-01-2015)
♦Use of FAX for Taxpayer Submission♦

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. C&E examiners will indicate the fax paragraph on Form 13195, Correspondence Action Sheet, or alternative version of the correspondence sheet, to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voicemail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

3.11.13.27  (01-01-2015)
♦Criminal Investigation Funny Box♦

  1. Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are willful and deliberate attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and claims of false refunds based on bogus return information.

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

    ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

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

    Note:

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

3.11.13.28  (01-01-2015)
♦Frivolous Argument♦

  1. 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 businesses include, but are not limited to, the examples in IRM 4.10.12, Frivolous Return Program. See Exhibit 3.11.13-15.

  2. Review the return to determine whether it appears to be a frivolous return.

    IF THEN
    The return meets any of the conditions identified as a frivolous return (See Exhibit 3.11.13-15,)

    Caution:

    If the return shows an Action Code 331, a CCC X and has a Form 4227 attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedures.

    Remove the return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) to review.
    NOTE: IRM 4.10.12.1.3.3, Campus FRP Coordinators, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within two (2) business days. If a determination is not made within the allowed time frame, the Examination examiner will edit on the return Action Code 331 in the lower left hand margin of the return.
    Examination has selected the return as frivolous, e.g., indicated by an Action Code 331, a CCC X, and a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing" , but sends the return for processing, Continue to process the return using the procedures in the IRM 3.11.13. for your function. However, do not circle or void the Action Code indicating a frivolous return.

    Note:

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

3.11.13.29  (01-01-2015)
♦Re-Entry Document Procedures♦

  1. A return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module.

  2. Each re-entry return must have a Form 3893, Re-Entry Document Control or Form 13596, Reprocessing Returns attached.

    • Form 3893 is used to re-input documents that have not posted to an account or module.

    • Form 13596 is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module.

  3. Always leave a Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document. See Figure 3.11.13-71 for an example of 13596 attached to a return.

    Exception:

    If the return is more than 2 years and 9 months from return due date, do not use Form 3893 or Form 13596 reprocessing procedures. Route the return to the Statute Control Unit following statute procedures.

    Figure 3.11.13-71

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  4. Examine the Form 3893 and/or Form 13596 to determine the action to be taken to make the return processable.

    Caution:

    If the Received Date is 2 years and 9 months or more after the Return Due date, refer to Statute procedures before reentering or reprocessing the return. See IRM 3.11.13.33, Statute Returns.

3.11.13.29.1  (01-01-2015)
♦Form 3893 - Re-Entry Document Control♦

  1. Form 3893, Re-Entry Document Control, is used to re-input a return that has not posted to an account or module.

  2. If more than one return is in the batch and only the top Form 3893 has an entry in box 1 (Alpha / Numeric block control no.), edit all returns using current processing procedures and keep all returns clipped together.

  3. Do not edit CCC "G" on amended returns. Circle the CCC "G" if present.

  4. Do not send Letter 1382C if a request for reasonable cause is attached.

  5. If the return was not edited according to current processing procedures, circle out any Action Codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing procedures.

  6. If the return was edited according to current processing procedures, ensure that the information from Form 3893 is edited to the return.

    FORM 3893 BOX ACTION TAKEN
    Box 14 (Remarks), Ensure that the information is edited to the return.
    Box 15 (Process as),
    1. Circle any green rocker and edit marks that may indicate a receipt of remittance.

    2. Do not change any tax due amounts.

  7. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    IF THEN
    Improper perfection, Edit the same correction in red to the appropriate area.
    Taxpayer error, Leave the entries as shown on the document.
  8. A Received Date Stamp must be present on all Re-Entry returns.

    IF THEN
    Received date is not present, Use the due date for the Tax Period shown on the return as the Received Date. Edit the date to the middle of the return.
    Multiple received dates are present, Circle all but the earliest date.
  9. When additional information is still needed to make the return processable, prepare Form 13195 or local equivalent of Form 13195 or Paperless Correspondence or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).

  10. When perfection is not possible, edit Action Code 640 on the return and attach Form 4227 notating, "Perfection not possible" and leave in batch.

3.11.13.29.2  (01-01-2015)
♦Form 13596 - Reprocessing Returns♦

  1. Form 13596, reprocessing Returns, is used to reprocess returns to the correct account or module that has previously posted to the wrong account or module.

  2. Do Not edit CCC "G" on amended returns. Circle CCC "G" if present.

  3. Do Not send Letter 1382C if a request for reasonable cause is attached.

  4. If the return was not edited according to current processing procedures, re-edit according to current processing instructions.

  5. If the return was edited according to current processing procedures, ensure that the information from Form 13596 is edited on the return.

    Form 13596 Action Taken
    TIN correction, Edit correct TIN on return.
    Tax Period correction, Edit correct tax period ending on return.
    Reasonable cause, Edit appropriate computer condition code:
    1. Edit CCC "R" if the "FTF" box is checked.

    2. Edit CCC "D" if the "FTP" box is checked.

  6. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    IF THEN
    Improper perfection, Edit the same correction in red to the appropriate area.
    Taxpayer error, Leave the entries as shown on the document.
  7. A Received Date Stamp must be present on all reprocessed returns.

    IF THEN
    Received date is not present, Use the due date for the Tax Period shown on the return as the Received Date. Edit the date to the middle of the return.
    Multiple received dates are present, Circle out all but the earliest date.
  8. Circle any green rocker and edit marks that may indicate a receipt of remittance.

  9. When additional information is still needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227 for the appropriate action (e.g., correspondence, research, etc.)

3.11.13.30  (01-01-2015)
♦Refund Returns - 45-Day Jeopardy and $10 Million Dollar or more Refunds♦

  1. Document Perfection is responsible for identifying refunds and for initiating requests for manual refunds.

    Note:

    Expeditious processing of refund returns is critical if the 45 day period is about to expire.

    IF THEN
    A refund is batched in a non-refund batch,
    1. Completely edit the return.

    2. Pull the return from the non-refund batch and merge into a refund batch using local procedures.

    Note:

    Follow the instruction below when the processing date is more than 20 days after the received date, or the return due date, or when the refund is $10,000,000.00 or more.

    The processing date is more than 20 days after received date or, the return due date (whichever is later) and the 45 day interest free period is in jeopardy and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not over payments transferred to other periods.


    Unnumbered Returns:
    1. Pull the return from the batch.

    2. Code and edit the return as completely as possible.

    3. Edit Action Code 341.

    4. Give the return to the manager for expedite processing.



    Numbered Returns:
    1. Code and edit the return as completely as possible.

    2. Edit Action Code 341 and leave in batch.

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

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not over payments transferred to other periods.

    1. Pull the return from the batch.

    2. Code and edit the return as completely as possible.

    3. Edit Action Code 341 for numbered and unnumbered returns

    4. Give the return to the manager for expedite processing.

    The Wage and Investment (W&I) Submission Processing Liaison for TAS issues walks a return through C&E, In addition of normal editing, perform the actions below:
    1. Edit CCC "O" to freeze the refund.

    2. Edit CCC "Y" to send the return to ERS.

3.11.13.31  (01-01-2015)
♦Correspondence Imaging System (CIS) Returns♦

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

  2. "CIS" returns are identified with "CIS Image. Do not correspond for signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Verify all edit marks and ensure placement is correct on a "CIS" return.

    IF THEN
    The edit marks are in black, Underline the edit mark if correct or circle if incorrect.
    The edit marks are red or green, Circle if incorrect.
    The edit marks are missing or incorrect, Perfect as necessary.
  4. Follow the correspondence instructions below for processing "CIS" returns:

    IF AND THEN
    The "CIS" return has a Form 13596 attached,

    Note:

    If there is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), do not route the return to Accounts Management (AM).
    Continue processing the return.

    The return is not complete (e.g., missing signature, schedules, or forms), Remove the return from the batch and route to AM.

    Note:

    If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information.

    Note:

    Do not correspond for missing information on "CIS" reprocessable returns .

    The "CIS" return does not have a Form 13596 attached, The return is not complete (e.g., missing signature, schedule, or forms), Follow normal correspondence procedures.

3.11.13.32  (01-01-2015)
♦Compliance Secured/Prepared Returns♦

  1. Compliance functions (Collections or Examination) secure returns from the taxpayer and also prepare returns if the taxpayer does not provide them.

    Note:

    If "RD" is notated on the return and not circled, remove from the batch and route to Collections.

    1. Prepared tax returns are notated with "6020(b)" or SFR (Substitute for Return).

    2. Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collection System) or notated Process as Original with an attached Form 13133, Expedite Processing Cycle. The "Delinquent Return" box on Form 13133 should be checked.

      Note:

      Secured returns noted with "599" in the left margin and "Possible Duplicate" or "Potential Duplicate" in the top margin should be processed as an original return. The notation of Possible/Potential Duplicate is relevant to Collections, a second return is being processed because the first return did not post as anticipated.

3.11.13.32.1  (01-01-2015)
♦IRC § 6020(b) - Prepared by Collections♦

  1. When the taxpayer fails to file a required return, IRC § 6020(b) is the authority for the IRS to prepare the return. See Figure 3.11.13-72.

  2. These returns are identified by a notation, such as: "PREPARED AND SIGNED UNDER AUTHORITY OF IRC § 6020(b) OF THE INTERNAL REVENUE CODE" (or any notation of "IRC § 6020(b)" ), which is located in the center bottom margin Page 1 or Page 2 of the return. These returns should also indicate "TC 599 cc 38" or "TC 599 cc 63" in the left upper margin.

    1. Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.

    2. Returns must be signed by Compliance Function Representative. If not signed, route to Rejects to cancel the DLN appearing on the document. Then, using local procedures, mail to the following address:
      Internal Revenue Service
      2970 Market St
      Mail Stop 5.E04.114
      Philadelphia, PA 19104

      Note:

      Starting July 1, 2013 we will accept the Revenue Officers (RO) electronic signature or typed signature as a valid signature on the return.

      Note:

      Accept a 6020(b) return as signed, when Form 5604 6020(b) Action Sheet is attached and a signature is in the "Signature of Initiating Collection Employee" box.

      Note:

      Accept the Revenue Officers (RO) signature anywhere on the return.

      Note:

      Consider a 6020(b) return signed by the taxpayer as a "signed" return.

    3. Edit CCC "4" See IRM 3.11.13.11.2.

      Note:

      CCC "R" should not be used with CCC "4"

      .

    4. Edit SIC 1 to Form 941, Form 943, Form 944 and Form 945

    5. Edit CCC "D" if the Compliance Function notates: "DO NOT ASSESS FAILURE TO PAY PENALTY" .

    6. Do Not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, edit CCC "3" and continue processing.

    7. Edit CCC "W" if the received date is more than 2 years and 9 months after the return due date. Do Not send the return to Statute Control.

    8. If only the total taxes is present, perfect as withholding tax only.

    Figure 3.11.13-72

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

3.11.13.32.2  (01-01-2015)
♦Collection Secured♦

  1. These returns are identified by the notations: "TC 59X " or "ICS" .

    1. Do Not edit CCC "G" on these returns.

    2. Use Form 13195, Correspondence Action Sheet or Local Equivalent of Form 13195 or Paperless Correspondence to correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.)

      Exception:

      A taxpayer's signature on a notice with a jurat is acceptable.

    3. Edit CCC "W" if the received date is more than 2 years and 9 months after the return Due Date. Do Not send to Statute Control function.

      Reminder:

      If there is an indication that a penalty (or penalties) should be suppressed, edit the appropriate Computer Condition Code(s). Please refer to IRM 3.11.13.11.2 for more information.

3.11.13.32.3  (01-01-2015)
♦Examination Prepared Returns - SFR or Substitute for Return♦

  1. These returns are identified by the notation "SFR" or "SUBSTITUTE FOR RETURN" on Page 1.

    1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.

    2. Do not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, edit CCC "3" and continue processing.

    3. If Form 13133 is attached, edit the computer condition codes that are checked on the form.

      Note:

      CCC "R" should not be used with a CCC "4" .

    4. Edit CCC "W" if the received date is more than 2 years and 9 months after the return Due Date. Do Not send to Statute Control function. (See IRM 3.11.13.33, Statute Returns)

3.11.13.32.4  (01-01-2015)
♦Examination Secured Return♦

  1. These returns are identified by the notation "Process as original" on the return and a Form 13133, Expedite Processing Request, attached with the "Delinquent Return" box checked.

    1. Do Not edit CCC "G" on these returns.

    2. Use Form 13195, Correspondence Action Sheet or Local Equivalent of Form 13195 or Paperless Correspondence to correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.).

      Exception:

      A taxpayer's signature on a notice with a jurat is acceptable.

    3. Edit the Computer Condition codes that are checked on Form 13133.

    4. Edit CCC "W" if the received date is more than 2 years and 9 months after the return due date. Do Not send to Statute Control function.

      Reminder:

      If there is an indication that a penalty (or penalties) should be suppressed, edit the appropriate Computer Condition Code(s). Please refer to IRM 3.11.13.11.2 for more information.

3.11.13.33  (01-01-2015)
♦Statute Returns♦

  1. Any Form(s) 941, 943, 944, or 945 with a received date that is equal to or later than the date shown in column 3 e.g., Return Due date plus 2 years, 9 months, in the table below is a potential statute control return. Refer to the table below also for Form CT-1. Also refer to the Exceptions list in #3 below.


  2. (Column #1) Year 2011 Form

    (Column #2) Statute Start Date

    (Column #3) Statute Start Date + 2 yr 9 months.

    (Column #4) Potential Statute Expiration Date
    Form 941, Form 941-PR, Form 941-SS (all quarters, year 2010 ) April 15, 2012 January 15, 2015 - 3 years from April 15 of the year following the year for which the return was due.
    Form 943, Form 943-PR April 15, 2012 January 15, 2015 Same as the Form 941
    Form 944 April 15, 2012 January 15, 2015 Same as the Form 941
    Form 945 April 15, 2012 January 15, 2015 Same as the Form 941
    Form CT-1 Feb 28, 2012 Nov 28, 2014 Feb 28, 2015
  3. Statute returns must be routed to the Statute Control Unit daily or more often if needed.

    Exception:

    Do Not route to the Statute Control Unit for Clearance, edit CCC "W," and continue processing if any of the following conditions are present:

    • Compliance Section 6020(b) returns,

    • Secured by Examination/Collections, Secured by TE/GE, Secured by TE/GE Exam

    • Return with TC 59X or ICS notated on the face of the return

    • Returns that are substitute returns prepared by Examination (SFR) in top margin of the return

    • Return with a stamp indicating a clearance by Statute Control within the last ninety days

  4. If a Form 12412, Operations Assistance Request (OAR), is received from TAS and the return is a potential statute control return but is not stamped cleared by Statute, give the return to your lead. The lead will contact the TAS employee listed on the OAR for rejection of the return and send it back to TAS for clearance by the Statute Unit.

    Note:

    If the return is within 90 days of the statute expiration date, advise the TAS employee of such and that expedited handling is needed. If requested by the TAS employee route the return directly to statute for clearance.

  5. Statute returns are unprocessable until they are cleared by Statute Control.

    IF THEN
    The return is numbered,
    1. Edit Action Code 310 on the return.

    2. Leave the return in the batch and continue processing.

    The return is unnumbered,
    1. Do not continue processing.

    2. Pull the return from the batch.

    3. Attach Form 4227 and check the Statute Control Box.

  6. Edit CCC “W” if the return has been cleared by the Statute Control Unit. Statutes will stamp or indicate clearance on the front of the return.

  7. Statute may stamp a return as "No Statute Issue" , "Statute N/A" or a similar statement indicating there is no statute issue. Follow the chart below to determine if a CCC "W" is needed:

    IF AND THEN
    The return received date is 2 years and 9 months or more after the Return Due Date The return is stamped, "No Statute Issue" " Statute N/A " or a similar statement indicating there is no statute issue Edit a CCC "W"
    The return received date is less than 2 years and 9 months from the Return Due Date The return is stamped, "No Statute Issue" "Statute N/A" or a similar statement indicating there is no statute issue, Do not edit a CCC "W"

3.11.13.34  (01-01-2015)
Prompt, Quick, or Jeopardy Assessments

  1. Returns requiring prompt, quick, jeopardy, or termination assessments will be received in Document Perfection accompanied by one of the following forms:

    • Form 2644, Recommendation for Jeopardy or Termination Assessment

    • Form 2859 or 4922, Request for Quick or Prompt Assessment

    • Form 895, Notice of Statute Expiration

    • Form 3198, Special Handling Notice,

    • Form 5403, Appellate Closing Record

    • Letter attached requesting a prompt determination under IRC § 505(b) of the United States Bankruptcy Code

    IF AND THEN
    A Prompt, Quick, Jeopardy or Termination Assessment request is NOT attached to a tax return,   Forward the Prompt, Quick, Jeopardy or Termination Assessment request to Examination.
    A Prompt, Quick, Jeopardy or Termination Assessment request is attached to a tax return, A TC 150 has NOT posted for the tax return, Process the return and forward the Prompt, Quick, Jeopardy or Termination Assessment request to Examination with a copy of the tax return.
    A TC 150 has posted for the tax return, Route the return and the Prompt, Quick, Jeopardy or Termination Assessment request to Examination.
  2. If the Form 2859 is attached to the return and there is a TC 59X with no received date, edit the received date on the return from the Date of Request box on the Form 2859.

3.11.13.35  (01-01-2015)
Conditions for Rejection of Non-ADP Documents (BMF)

  1. Any document issued prior to the specified tax period below is not available for ADP conversion. They are:

    • Form 941E beginning after January 1, 1994,

    • Form 942/942-PR prior to January 1, 1995,

    • Form 943 prior to December 1961, or

    • CT-1 returns, or other annual returns prior to 1982, or

    • Quarterly returns prior to March 31, 1962.

  2. The document is a type that has not been included in the ADP System.

3.11.13.35.1  (01-01-2015)
Rejection Action Procedures

  1. Prepare Form 4227 to indicate the reason for rejection in the "Remarks" section. Attach the form to the face of the document in a position that will leave the entity data, condition codes, and remittance amount, if any, visible for transcription.

    IF THEN
    The document has not been numbered, Take it out of the block. Forward to Receipt and Control function.
    The document has been numbered, Enter an AC 620 in the applicable area of the document. Leave document in the block.

3.11.13.36  (01-01-2015)
Taxpayer Advocate Service (TAS)

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) or has Form 911 attached, and you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.

3.11.13.37  (01-01-2015)
♦TAS - Service Level Agreements (SLA)♦

  1. The National Taxpayer Advocate has reached agreements with the Commissioner, Wage & Investment (W&I) Division, Small Business & Self-Employed (SB/SE) Division, Tax Exempt & Government Entities (TE/GE), Criminal Investigation (CI), Appeals and Large Business and International (LB&I), that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs are located at http://tas.web.irs.gov/policy/default.aspx under the heading "Policy/Procedures/Guidance" .

3.11.13.38  (01-01-2015)
♦BMF Identification (ID) Theft♦

  1. BMF Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Code and Edit (C&E) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft, provide the whole case to your senior/lead. Your senior/lead will expedite the case to the PA staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must clearly state that they are a victim of “ID Theft”; do not send cases that are subject to “Funny Box” or “Fraud” review.

Exhibit 3.11.13-1 
Form 941, Revision 2014 Road Map

Form 941 Revision 2014, Page 1 Road MapForm 941 Revision 2014, Page 2 Road Map
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This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.11.13-2 
Form 941-PR, Revision 2014 Road Map

Form 941PR Revision 2014, Page 1 Road MapForm 941PR Revision 2014, Page 2 Road Map
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This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.11.13-3 
Form 941-SS, Revision 2014 Road Map

Form 941-SS, Revision 2014, Page 1 Road MapForm 941-SS, Revision 2014, Page 2 Road Map
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This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.11.13-4 
Form 941 Revision 2004 Conversion Road Map

Form 941 Revision 2004 Conversion Road Map
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Exhibit 3.11.13-5 
Form 943, Revision 2014 Road Map

Form 943, Revision 2014 Road Map
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Exhibit 3.11.13-6 
Form 944, Revision 2014 Road Map

Form 944, Revision 2014, Page 1 Road MapForm 944, Revision 2014, Page 2 Road Map
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This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.11.13-7 
Form 945, Revision 2014 Road Map -

Form 945 Revision 2014 Road Map
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Exhibit 3.11.13-8 
Form CT-1, Revision 2014 Road Map

Form CT-1, Revision 2014 Road Map
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Exhibit 3.11.13-9 
Form CT-1, Revision 2010 Road Map

Form CT-1 Revision 2010 Road Map
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Exhibit 3.11.13-10 
Employment Tax Return Due Date Table

Employment Tax Return Due Date Table
FORM PERIOD COVERED PERIOD ENDING DUE DATE ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
941/941-PR/941-SS OCT., NOV., DEC. DEC. 31, 2014 FEB 2, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
941/941-PR/941-SS JAN., FEB., MAR. MAR. 31, 2015 APRIL 30, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
941/941-PR/941-SS APR., MAY, JUN. JUN. 30, 2015 JULY 31, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
941/941-PR/941-SS JUL., AUG., SEP. SEP. 30, 2015 NOV 2, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
943/943-PR JAN. - DEC. DEC. 31, 2014 FEB 2, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
944/944-SP JAN. - DEC. DEC. 31, 2014 FEB 2, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
945 JAN. - DEC. DEC. 31, 2014 FEB 2, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
CT-1 JAN. - DEC. DEC. 31, 2014 MAR 2, 2015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Exhibit 3.11.13-11 
State Deposit Code Chart

State Deposit Code Chart
State Abbreviation Name of State State Abbreviation Name of State
AL Alabama NE Nebraska
AK Alaska NV Nevada
AZ Arizona NH New Hampshire
AR Arkansas NJ New Jersey
CA California NM New Mexico
CO Colorado NY New York
CT Connecticut NC North Carolina
DE Delaware ND North Dakota
FL Florida OH Ohio
GA Georgia OK Oklahoma
HI Hawaii OR Oregon
ID Idaho PA Pennsylvania
IL Illinois RI Rhode Island
IN Indiana SC South Carolina
IA Iowa SD South Dakota
KS Kansas TN Tennessee
KY Kentucky TX Texas
LA Louisiana UT Utah
ME Maine VT Vermont
MD Maryland VA Virginia
MA Massachusetts WA Washington
MI Michigan WV West Virginia
MN Minnesota WI Wisconsin
MS Mississippi WY Wyoming
MO Missouri DC District of Columbia
MT Montana MU Multiple States

Exhibit 3.11.13-12 
Tax Rate/Factor Table

Tax Rate/Factor Table
SOCIAL SECURITY/MEDICARE TAX RATES AND FACTORS
YEAR TAXABLE SOCIAL SECURITY WAGES AND TIPS TAXABLE MEDICARE WAGES AND TIPS Taxable Wages & Tips subject to Additional Medicare Tax Withholding TIPS DEEMED WAGES
Social Security Tax Rate Factor Medicare Tax Rate Factor   Social Security Tax Rate Factor
1984 13.7% 7.2923 2.6% 38.4615   .0700 14.2857
1985 14.1% 7.0922 2.7% 37.0370   .0705 14.1844
1986 14.3% 6.9930 2.9% 34.4828   .0715 13.9860
1987 14.3% 6.9930 2.9% 34.4828   .0715 13.9860
1988 15.02% 6.6578 2.9% 34.4828    
1989 15.02% 6.6578 2.9% 34.4828  
1990 15.3% 6.5359 2.9% 34.4828  
1991–2010 12.4% 8.0645 2.9% 34.4828  
2011 10.4% 9.6154 2.9% 34.4828  
2012 10.4% 9.6154 2.9% 34.4828  
2013 12.4% 8.0645 2.9% 34.4828 .009
2014 12.4% 8.0645 2.9% 34.4828 .009
2015* 12.4% 8.0645 2.9% 34.4828 .009
* Note: Percentage rate is subject to change due to legislation  

Exhibit 3.11.13-13 
Action Codes Chart

Action Code Chart
CE = Code & Edit S = Suspense
EC = Error Correction GEN = Computer Generated
ACTION CODE DESCRIPTION WORKDAY SUSPENSE PERIOD FUNCTION USED IN
Correspondence
211 First Taxpayer Correspondence 40 CE, EC, S
212 Second Taxpayer Correspondence 25 CE, EC, S
215 International Correspondence 45 CE, EC, S
225 Taxpayer Correspondence (Signature Only) 40 CE, EC, S
226 International Taxpayer Correspondence (Signature Only) 45 CE, EC, S
In-House Research
310 Statute Control 10 CE, EC, S
320 Entity Control 10 CE, EC, S
Criminal Investigation Division
331 Frivolous Review 10 CE, EC
Accounting
341 Manual Refund 10 CE, EC, S
342 Credit Verification 10 CE, EC, S
MFTRA Research
352 Name Research 3 CE, EC, S
360 Other In-House Research 10 CE, EC, S
Management Suspense
440 Manager's Suspense 10 CE, EC, S
480 Early Filed Suspense 150 CE, EC, S
Rejects
610 Renumber - Non-Remit 0 CE, EC
611 Renumber - Remit 0 CE, EC
640 Void 0 CE, EC, S
650 International 0 CE, EC, S

Exhibit 3.11.13-14 
Document Locator Number

Document Locator Number
DOCUMENT LOCATOR NUMBER
79 1 41 000 000 00 6
File Location Tax Class Document Code Numeric Day of the Year Julian Date Block Number Sequence Number Year Digit
Document Code
Identifies the specific type of return or document within a tax class. For example:
Tax Class Document Code Document
1 41 Form 941
1 43 Form 943
1 49 Form 944
1 44 Form 945
1 11 Form CT-1
1. Service Center Code digits are used on returns processed after January 1, 1981.
2. District Office Code digits were used on re-input returns and processed before January 1, 1981.

Exhibit 3.11.13-15 
♦Potential Frivolous Returns♦

Potential Frivolous Returns
Potential Frivolous Arguments for Examination Review (per IRM 4.10.12)
Alleged Churches/ First Amendment Income from non-religious sources and may claim a vow of poverty.
Altered Form Altering any or all line items with the intent of facilitating non-compliance with the tax laws.
Altered Jurat/ Uniform Commercial Code (UCC) 1-207 Return contains income and deductions but the jurat has been altered on stricken. May include reference of UCC 1-207 or a statement that the return was not signed under penalty of perjury.
Amended Returns/ Form 843 Claim Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument.
C-Filings This frivolous position includes the following our categories:
  1. Files a return claiming various types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrages character, qualify as frivolous returns.

  2. Files a return containing the filers identifying information, but does not request a refund, often lacking sufficient information to determine a tax liability.

  3. Files a return with various types of rambling dialogue and/or crazy arguments that no one could reasonably view as good faith attempt to comply with the law.

  4. Files a return that attempts to send some type of message or protest to the IRS, but fails to include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address.

Challenge to Authority/ Due Process Questions various administrative authorities such as delegation orders, summons authority, privacy acts, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized.
Challenge to Authority/ Title 26 or "law" in Other Documents Argues that Title 26 of the United States Code is not law because it was never enacted as named.
Collection Issues Files frivolous documents contending that various collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests etc.) because they are not filed and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a state or local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions.
Disclaimer Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero.
Fifth Amendment Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.
Foreign Income Argues that United States citizens and residence are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresidence aliens and foreign S Corporation from sources within the United Sates is taxable.
IRC § 861 Business Employment Tax (BMF 861) Arguments targets employers and advises them that wages are exempt from withholding. Based on 26 Code of Federal Regulations (CFR) Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition some employers file amended payroll tax returns and request refunds of previously paid payroll taxes.
IRS is a Private Organization / Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" .
Not A Person Argues that a taxpayer is not a "person" within the meaning of IRC § 7701(a)(14) of the Internal Revenue Code.
Obscene, Vulgar, Harassing Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies of taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner.
Protest Against Government Action/ Inaction Argues that refusal to file or pay is justified because they disagree with government policies or spending plans.
Sixteenth Amendment Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment.
Straw Man Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man " .
Taxes are Voluntary/ Law Does Not Require Submits a return, amended return, or correspondence that argues income taxes are voluntary.
U.S. v. Long Submits a return with zero money amounts much the same as the "Zero Return" category and "U.S. v. Long" is referenced.
See note is Zero Returns below.
Unsigned Return The individual completes a return but fails to sign. A statement indicating disagreement with the tax system is attached or added to the return.
Valuation Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services of offset by the value of the labor (barter income), etc.
Zero Returns Submits a return with zero money amounts. A statement is attached claiming there is not section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income.

Note:

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

Other All others. This category includes non-filers accounts resulting from initial compliance check such as cross-reference TINs.

Note:

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

Exhibit 3.11.13-16 
Glossary of Acronyms

Glossary of Acronyms
Acronym Meaning - Definition
- A -
AC Action Code
ADP Automated Data Processing
AEIC Advanced Earned Income Credit
AM Accounts Management
AO Area Office (Formerly District or Field Office)
APO Army Post Office
ASED Assessment Statute Expiration Date
ASFR Automated Substitute For Return
- B -
BMF Business Master File
BMFOL Business Master File On-Line (IDRS Command Code)
- C -
CAF Centralized Authorization File
CAWR Combined Annual Wage Reporting
CC Command Code
CCC Computer Condition Code
CDP Collection Due Process
C&E Code and Edit
CIB Criminal Investigation Branch
CIS Correspondence Imaging System
C/O In-Care-Of Name
COBRA Consolidated Omnibus Budget Reconciliation Act
CP Computer Paragraph (Notice)
CSPC Cincinnati Submission Processing Campus
CY Cycle or Calendar Year
- D -
DBA Doing Business As
DLN Document Locator Number
DOL Department of Labor
DPO Diplomatic Post Office
- E -
ECU Entity Control Unit
EIC Earned Income Credit
EIN Employer Identification Number
EPMF Employee Plan Master File
ERS Error Resolution System
- F -
FICA Federal Insurance Contributions Act
FKA Formerly Know As
FPO Fleet Post Office
FRP Frivolous Return Program
FTD Failure to Deposit
FTF Failure to File
FTP Failure to Pay
-G -
GUF Generalized Unpostable Framework
GAO General Accounting Office
- I -
ICS Integrated Collection System
IDAP Input Decision Assisting Program
IDRS Integrated Document Retrieval System
IGR IDRS Generated Refund
IMF Individual Master File
INOLE Information On-Line Entity (IDRS Command Code)
IRA Individual Retirement Account
IRC Internal Revenue Code
IRM Internal Revenue Manual
IRS Internal Revenue Service
ISRP Information and Remittance Processing System
ITIN IRS Individual Taxpayer Identification Number
- K -
KIF Key Index File
- M -
MCC Major City Code
MFT Master File Transaction
MS Mail Stop
MMDDYY Received Date Format
- N -
NAP National Account Profile
NCOA National Change of Address
NLRB National Labor Relations Board
NMF Non-Master File
- O -
OAR Operations Assistance Request
OMB Office of Budget Management
OSPC Ogden Submission Processing Campus
- P -
PCD Program Completion Date
PDS Private Delivery Service
POA Power Of Attorney
PO Post Office Box
PY Prior Year or Processing Year
- Q -
QRDT Questionable Refund Detection Team
- R -
Rev Proc Revenue Procedure
RO Revenue Officer
RPS Remittance Processing System
RR/Rev Rul Revenue Ruling
RRB Railroad Retirement Board
RRTA Railroad Retirement Act
- S -
SC Service Center
SCRIPS Service Center Recognition Image Processing System
SFR Substitute For Return
SIC Schedule Indicator Code
SLA Service Level Agreement
SS Social Security
SSA Social Security Administration
SSN Social Security Number
- T -
TAO Taxpayer Assistance Order
TAS Taxpayer Advocate Service
TC Transaction Code
TE Tax Examiner
TEP Tape Edit Processor
TIA Tax Information Authorization
TPE Tax Period Ending (date)
TPNC Taxpayer Notice Code
TY Tax Year
- U -
UCC Uniform Commercial Code
USPS United States Postal Service
US United States
- W -
W&I Wage and Investment
- Y -
YYMM Tax Period Format for Forms 941, 941-PR, and 941-SS
YY Tax Period Format for Forms 943, 943-PR,Form 944, Form 944-PR, 944-SS, Form 945 & Form CT-1
- Z -
ZIP Zone Improvement Plan

Exhibit 3.11.13-17 
Paperless Correspondence Action Code Procedures

Paperless Correspondence Action Code Procedures
Paperless Correspondence Action Code Procedure Table

Applies to all returns unless otherwise indicated
Note: For signature, also add z and g (lower case) to an selective paragraphs.
Note: When two correspondence conditions exist, add the needed paragraphs to the selective paragraph codes, in alphabetical order, upper case letters first, numbers second, and lower case letters last.
For example, date of Final Wages and Signature will be 211 - 1 Z g
[XX] - indicates a fill in field
Form Correspondence Action Action Code and Selected Paragraphs Fill-in Explanation
All Signature Only 225 or 226 (Foreign Return)  
941, 944 Date of Final Wages 211 - 1  
941 Incorrect tax Period (Quarterly Return) 211 - 2 [09] ___ [10] ____ [24] ___ Beginning Date [09] ___ Ending Date [10] ___ Form [24] ___ (Date must be in MMDDYYYY)
943,
944,
945,
CT-1
Incorrect tax Period (Annual Return) 211 - 3 [09] ___ [10] ____ [24] ___ Beginning Date [09] ___ Ending Date [10] ___ Form [24] ___ (Date must be in MMDDYYYY)
941 No Tax Liability 211 -4[10] ___ Deposit Amount [11] $___
943 No Tax Liability 211 - 5 [11] ___ Deposit Amount [12] $___
944 No Tax Liability 211 - 6 [12] ___ Deposit Amount [13] $___
945 No Tax Liability 211 - 7 [13] ___ Deposit Amount [14] $___
CT-1 No Tax Liability 211 - 8 [14] ___ Deposit Amount [15] $___
941
943
944
CT-1
HIRE Information Incomplete 211 - 9 [16] ___ Form [16] _______
All Blank Lines 211 - 10 [17] ___ [18] ___ [19] ___ Blank Lines - [17] ___through line [18] ___ on Form [19] ___
941
943
944
COBRA Information missing 211 - 11 [ XX] ___ 20[ XX] Form ___
Both total payments & number of recipients needed.
941 Incomplete Return 211 - 12  
943 Incomplete Return 211 - 13  
944 Incomplete Return 211 - 14  
945 Incomplete Return 211 - 15  
CT-1 Adjustment Explanation 211 - 16  
941
943
944
Social Security and Medicare wages blank or tax exempt 211 - 17 [XX] ___  
All Needs explanation - return is reporting payroll or non-payroll 211 - 18 [XX] ___  
All Clarify Advanced Earned Income Credit 211 - 19  
All Total Tax line differs 211 - 20 [20] ___ Taxpayer's tax [21] ___ Underprint [22] ___
All Exempt Family Members 211 - 21 Age of exempt family members needed.
All Clarify Social Security wages and tip amounts and/or Medicare wage amounts incorrect - creates refund 211 - 22  
All Damaged Form 211 - 23 [23] Form (23)
943
944
945
CT-1
Early Filed Return 211– 24 [25}, [26] Form (25)____ Tax Year Filed (26)_____
All Missing Page 211–25 Form (27) _____
All Any Other Correspondence Issue – Use IRM Verbiage if Possible, ( Must be initialed by a Lead or Manager) 28 - [26] ___ Blank fill-in [28]. (Fill-in after [28] is your narrative, limited to 385 characters, including spaces)

Exhibit 3.11.13-18 
U.S. Possessions ZIP Codes

U.S. Possessions Zip Codes
City ZIP Code City ZIP Code
Leone 96799 Pago Pago 96799
Faga'itua 96799 Olosega Manua' 96799
American Samoa (AS)
Federated States of Micronesia (FM)
Chuuk 96942 Pohnpei 96941
Kosrae 96944 Yap 96943
Guam (GU)
Agana 96910 Tamuning 96931
Inarajan 96917 Umatac 96915
Merizo 96916 Yona 96915
Marshall Islands (MH)
Ebeye 96970 Majuro 96960
Northern Mariana Islands (MP)
Capitol Hill 96950 Saipan 96950
Rota 96951 Tinian 96952
Palau (PW)
Koror 96940 Palau 96940
Puerto Rico (PR)
Adjuntas 00601 Laplata 00786
Aquada 00602 Lares 00669
Aquadilla 00603 Las Marias 00670
Agnes Buenas 00703 Las Piedras 00771
Aguirre 00704 Levittown 00949
Aibonito 00705 Loiza 00772
Anasco 00610 Loiza Street Station 00936
Angeles 00611 Loquillo 00773
Arecibo 00612 Manati 00674
Arroyo 00714 Maricao 00606
Bajadero 00616 Maunabo 00707
Barceloneta 00617 Mayaquez 00680
Barraquitas 00794 Mercedita 00715
Barrio Obrero Station 00935 Minillas Center 00936
Bayamon 00956 Moca 00676
Boqueron 00622 Morovis 00687
Cabo Rojo 00623 Naguabo 00718
Caguas 00725 Narajito 00719
Camuy 00627 Orocovis 00720
Canovanas 00729 Palmer 00721
Caparra Heights 00920 Patillas 00723
Carolina 00982 Penuelas 00624
Catano 00962 Ponce 00731
Cayey 00736 Puerta de Tierra 00936
Ceiba 00735 Puerta Real 00740
Cerro Gordon 00754 Punta Santiago 00741
Ciales 00638 Quebradillas 00678
Cidra 00739 Ramey 00603
Coamo 00769 Rincon 00677
Comerio 00782 Rio Blanco 00744
Condado 00907 Rio Grande 00721
Corozal 00783 Rio Piedras 00927
Coto Laurel 00780 Rosario 00636
Culebra 00775 Sabana Grande 00637
Dorado 00646 Sabana Hoyos 00688
Ensenada 00647 Sabana Seca 00952
Esperanza 00765 Saint Just 00978
Fajardo 00738 Salinas 00751
Fernandez Juncos 00936 San Antonio 00690
Florida 00650 San Francisco 00927
Fort Buchanan 00934 San German 00683
Garrachales 00652 San Juan 00936
Guanica 00653 San Lorenzo 00754
Guayama 00784 San Sebastian 00685
Guayanilla 00656 Santa Isabel 00757
Guaynabo 00965 Sanrurce 00936
Gurabo 00778 Toa Alta 00953
Hatillo 00659 Toa Boa 00949
Hato Rey 00936 Trujillo Alto 00976
Harmingueros 00660 University 00936
Humacao 00791 Utuado 00641
Isabela 00662 Vega Alta 00692
Jayuya 00664 Vega Baja (box 1-9049) 00694
Juana Diaz 00795 Vieques 00765
Juncos 00777 Villalba 00766
La Cumbre 00926 Yabucoa 00767
Lajas 00667 Yauco 00698
U.S. Virgin Islands (VI)  
Charlotte Amalie 00802 Saint Croix 00820
Christiansted 00820 Saint John 00830
Cruz Bay 00830 Saint Thomas 00805
Downtown 00840 Sunny Isle 00850
Frederiksted 00840 Veterans Annex 00820
Kingshill 00850    

Exhibit 3.11.13-19 
Foreign Country Codes

Foreign Country Codes
Foreign Country Country Code
-A -
Abu Dhabi AE
Afghanistan AF
Akrotiri AX
Aland Island FI
Albania AL
Algeria AG
Andorra AN
Angola AO
Anguilla AV
Antarctic Lands (Southern Lands) FS
Antarctica AY
Antigua AC
Antigua & Barbuda AC
Argentina AR
Armenia AM
Aruba AA
Ascension SH
Ashmore & Cartier Islands AT
Australia AS
Austria AU
Azerbaijan AJ
Azores PO
- B -
Bahamas BF
Bahrain BA
Baker Island FQ
Balearic Islands (Mallorca, etc.) SP
Bangladesh BG
Barbados BB
Barbuda AC
Bassas da India BS
Belarus BO
Belgium BE
Belize BH
Benin (Dahomey) BN
Bermuda BD
Bhutan BT
Bolivia BL
Bonaire NT
Bosnia & Herzegovina BK
Botswana BC
Bouvet Island BV
Brazil BR
Brazzaville (Capital of Rep. of Congo) CF
British Indian Ocean Territory IO
British Virgin Islands VI
Brunei BX
Bulgaria BU
Burkina Faso (Upper Volta) UV
Burma BM
Burundi BY
- C -
Caicos Islands (Turks Islands) TK
Cambodia (Kampuchea) CB
Cameroon CM
Canada

Note:

Do Not use the code of Canada if a province/territory name or abbreviation is shown. See IRM 3.11.13.12.6.1 for editing procedures.

CA
Canary Islands SP
Cape Verde CV
Cartier Island AT
Cayman Islands CJ
Central Africa Republic CT
Chad CD
Channel Islands UK
Chile CI
China, People's Republic of (including Inner Mongolia, Tibet, and Manchuria) CH
Christmas Island (Indian Island) KT
Clipperton Islands IP
Cocos (Keeling) Island CK
Columbia CO
Comoros CN
Congo, Republic of (Brazzaville) CF
Congo, Democratic Republic of (Kinshasa) (Formerly Zaire) CG
Cook Islands CW
Coral Sea Islands Territory CR
Corsica FR
Costa Rica CS
Cote d'Ivoire (Ivory Coast) IV
Croatia HR
Cuba CU
Curacao NT
Cyprus CY
Czech Republic EZ
- D -
Dem. People's Rep. of Korea (North) KN
Dem. Rep. of Congo (Kinshasa) (Formerly Zaire) CG
Dem. Rep. of Timor-Leste TT
Denmark DA
Dhabi AE
Dhekelia DX
Djibouti DJ
Dominica DO
Dominican Republic DR
- E -
East Timor TT
Ecuador EC
Egypt EG
El Salvador ES
Eleuthera Island BF
England UK
Equatorial Guinea EK
Eritrea ER
Estonia EN
Ethiopia ET
Europa Island EU
- F -
Falkland Islands FK
Faroe Islands FO
Fiji FJ
Finland FI
France FR
French Guiana FR
French Polynesia FP
French Southern & Antarctic Lands FS
Futuna WF
- G -
Gabon GB
Gambia GA
Georgia GG
Germany GM
Ghana GH
Gibraltar GI
Glorioso Islands FS
Great Britain UK
Greece GR
Greenland GL
Grenada GJ
Grenadines VC
Guadeloupe FR
Guatemala GT
Guernsey GK
Guinea GV
Guinea-Bissau PU
Guyana GY
- H -
Haiti HA
Heard Island & McDonald Island HM
Holy See VT
Honduras HO
Hong Kong HK
Howland Island HQ
Hungary HU
- I -
Iceland IC
India IN
Indonesia ID
Iran IR
Iraq IZ
Ireland EI
Isle of Man IM
Israel IS
Italy IT
- J -
Jamaica JM
Jan Mayen JN
Japan JA
Jarvis Island DQ
Jersey JE
Johnston Atoll JQ
Jordan JO
Juan de Nova Island JU
- K -
Kazakhstan KZ
Kenya KE
Kingman Reef KQ
Kiribati KR
Korea (North) KN
Korea (South) KS
Kosovo, Republic of KV
Kurile Islands RS
Kuwait KU
Kyrgyzstan KG
- L -
Laos LA
Latvia LG
Lebanon LE
Lesotho LT
Liberia LI
Libya LY
Liechtenstein LS
Lithuania LH
Luxembourg LU
- M -
Macau MC
Macedonia MK
Madagascar MA
Malawi MI
Malaysia MY
Maldives MV
Mali ML
Malta MT
Martinique FR
Mauritania MR
Mauritus MP
Mayotte MF
McDonald Island HM
Mexico MX
Midway Islands MQ
Miquelon SB
Moldova MD
Monaco MN
Mongolia MG
Montenegro MJ
Montserrat MH
Morocco MO
Mozambique MZ
Myanmar BM
- N -
Namibia WA
Nauru NR
Navassa Island BQ
Nepal NP
Netherlands NL
Netherlands Antilles NT
Nevis SC
New Caledonia NC
New Zealand NZ
Nicaragua NU
Niger NG
Nigeria NI
Niue NE
Norfolk Island NF
North Korea KN
Northern Ireland UK
Norway NO
Oman MU
- O -
Oman MU
Other (country not identified elsewhere) XX
- P -
Pakistan PK
Palmyra Atoll LQ
Panama PM
Papua New Guinea PP
Paracel Islands PF
Paraguay PA
Peru PE
Philippines RP
Pitcairn Islands PC
Poland PL
Portugal PO
Principe TP
- Q -
Qatar QA
- R -
Redonda VI
Republic of Conga (Brazzaville) CF
Republic of Korea (South) KS
Republic of Kosovo KV
Republic of Singapore SN
Reunion FR
Romania RO
Russia RS
Rwanda RW
Ryukyu Islands JA
- S -
Samoa WS
San Marino SM
Sao Tome and Principe TP
Sarawak MY
Saudi Arabia SA
Scotland UK
Senegal SG
Serbia RI
Seychelles SE
Sierra Leone SL
Singapore SN
Slovak Republic LO
Slovakia LO
Slovenia SI
Solomon Islands BP
Somalia SO
South Africa SF
South Georgia Island & South Sandwich Island SX
South Korea KS
South Sandwich Island & South Georgia Island SX
Spain SP
Spratly Islands PG
Sri Lanka CE
St. Barthelemy TB
St. Helena SH
St. Kitts & Nevis SC
St. Lucia ST
St. Martin RN
St. Miquelon SB
St. Pierre & Miquelon SB
St. Vincent & Grenadines VC
Sudan SU
Suriname NS
Svalbard SV
Swaziland WZ
Sweden SW
Switzerland SZ
Syria SY
- T -
Taiwan TW
Tajikistan TI
Tanzania TZ
Thailand TH
The Bahamas BF
The Gambia GA
The Netherlands NL
Timor-Leste TT
Togo TO
Tokelau TL
Tonga TN
Tortola TL
Trinidad and Tobago TD
Tristan Da Cunha SH
Tromelin Island FS
Tunisia TS
Turkey TU
Turkmenistan TX
Turks & Caicos Islands TK
Tuvalu TV
- U -
Uganda UG
Ukraine UP
United Arab Emirates AE
United Kingdom UK
Uruguay UY
Uzbekistan UZ
- V -
Vanuatu NH
Vatican City VT
Venezuela VE
Vietnam VM
- W -
Wake Island WQ
Wales UK
Wallis and Futuna WF
West Bank WE
Western Sahara WI
Western Samoa WS
Windward Island VC
- Y -
Yemen YM
- Z -
Zaire CG
Zambia ZA
Zimbabwe ZI

Exhibit 3.11.13-20 
Province, State and Territory Abbreviations

Province, State and Territory Abbreviations
Australia State Abbreviation
Australian Capital Territory ACT
New South Wales NSW
Northern Territory NT
Queensland QLD
South Australia SA
Tasmania TAS
Victoria VIC
Western Australia WA
Brazil State Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Esperito Santo ES
Goias GO
Maranhao MA
Mato Grosso MT
Mato Grosso do Sul MS
Minas Gerais MG
Parana PR
Paraiba PB
Para PA
Pernambuco PE
Piaui PI
Rio de Janeiro RJ
Rio Grande do Norte RN
Rio Grande do Sul RS
Rondonia RO
Roraima RR
Santa Catarina SC
Sao Paulo SP
Sergipe SE
Tocantins TO
Canada Province/Territory Abbreviation
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
Newfoundland and Labrador NL
Northwest Territories NT
Nova Scotia NS
Nunavut NU
Ontario ON
Prince Edward Island PE
Quebec QC
Saskatchewan SK
Yukon YT
Cuba Provincias Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad di La Habana CH
Gramma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matazas MT
Municipio Especial Isla de la Juventud IJ
Pinar del Rio PR
Sancti Spiritus SS
Santiago de Cuba SC
(Victoria de) Las Tunas LT
Villa Clara VC
Italy Provincia Abbreviation
Agrigento AG
Alessandria AL
Ancona AN
Aosta/Aoste AO
Arezzo AR
Ascoli Piceno AP
Asti AT
Bari BA
Belluna BL
Beneveto BN
Bergamo BG
Biella BI
Bologna BO
BolozanoBolzen BZ
Brescia BS
Brindisi BR
Cagliari CA
Caltanisetta CL
Campobasso CB
Caserta CE
Catania CT
Catanzaro CZ
Chieti CH
Como CO
Cosenza CS
Cremona CZ
Crotone KR
Cuneo CN
Enna EN
Ferrara FE
Firenze FI
Foggia FG
Forli FO
Frosinone FR
Genova GE
Gorizia GO
Grosseto GR
Imperia IM
Isernia IS
L'Aquila AQ
La Spezia SP
Latina LT
Lecce LE
Livorno LI
Lodi LO
Lucca LU
Macerata MC
Mantova MN
Massa-Carrara MS
Matera MT
Messina ME
Milano MI
Modena MO
Napoli NA
Novara NO
Nuoro NU
Oristano OR
Padova PD
Palermo PA
Parma PR
Pavia PV
Perugia PG
Pesaro-Urbino PS
Pescara PE
Piacenza PC
Pisa PI
Pistoia PT
Pordenone PN
Potenza PZ
Prato PO
Ragusa RG
Ravenna RA
Reggio de Calabria RC
Reggio nell'Emilia RE
Rieti RI
Rimini RN
Roma RM
Rovigo RO
Salerno SA
Sassari SS
Savona SV
Siena SI
Siracusa SR
Sondrio SO
Taranto TA
Teramo TE
Terni TR
Torino TO
Trapani TO
Trento TN
Treviso TV
Trieste TS
Udine UD
Varese VA
Venezia VE
Verbania VB
Vercelli VC
Verona VR
Vibo Valentia VV
Vincenza VI
Viterbo VT
Mexico State Abbreviation
Aguascalientes AGS
Baja California Norte BCN
Baja California Sur BCS
Campeche CAM
Chiapas CHIS
Chihuahua CHIH
Coahuila COAH
Colima COL
Distrito Federal DF
Durango DGO
Guanajuato GTO
Guerrero GRO
Hidalgo HGO
Jalisco JAL
Mexico MEX
Michoacan MICH
Morelos MOR
Nayarit NAY
Nuevo Leon NL
Oaxaca OAX
Puebla PUE
Queretaro QRO
Quintana ROO QROO
San Luis Potosi SLP
Sinaloa SIN
Sonora SON
Tabasco TAB
Tamaulipas TAMPS
Tlaxcala TLAX
Veracruz VER
Yucatan YUC
Zacatecas ZAC
The Netherlands Province Abbreviation
Drenthe DR
Flevoland FLD
Friesland FR
Gelderland GLD
Groningen GN
Lemburg LB
North Brabant NB
North Holland NH
Overijssel OV
South Holland ZH
Utrecht UT
Zeeland SLD

Exhibit 3.11.13-21 
Form 941 Line Comparison- Year 2005 to Present

Form 941 Line Comparison- Year 2005 to Present
Form Line Name Revision Year 2014-2015 Revision Year 2013 Revision Year 2012 Revision Year 2011 Revision Year 2010, (2nd, 3rd, and 4th Quarters) Revision Years 2009 through 2010 (1st Quarter) Revision Years 2005 through 2008
Number of Employees Line 1 Line 1 Line 1 Line 1 Line 1 Line 1 Line 1
Wages, Tips Other Compensation Line 2 Line 2 Line 2 Line 2 Line 2 Line 2 Line 2
Income Tax Withheld Line 3 Line 3 Line 3 Line 3 Line 3 Line 3 Line 3
No wages, tips, comp. subject to Social Security/Medicare taxes Line 4 Line 4 check box Line 4 check box Line 4 check box Line 4 check box Line 4 check box Line 4 check box
Taxable Social Security Wages Line 5a col 1 (.124) Line 5a col 1 (.124) Line 5a col 1 (.104) Line 5a col 1 (.104) Line 5a col 1(.124) Line 5a col 1(.124) Line 5a col 1(.124)
Taxable Social Security Tips Line 5b col 1 (.124) Line 5b col 1 (.124) Line 5b col 1 (.104) Line 5b col 1 (.104) Line 5b col 1(.124) Line 5b col 1(.124) Line 5b col 1(.124)
Taxable Medicare Wages Line 5c col 1 (.029) Line 5c col 1 (.029) Line 5c col 1 (.029) Line 5c col 1 (.029) Line 5c col 1 Line 5c col 1 Line 5c col 1
Total Soc. Security & Medicare Taxes     Line 5d Line 5d Line 5d Line 5d Line 5d
Taxable Wages and Tips subject to Additional Medicare Tax Withholding (exceeds $200,000 per employee) Line 5d col 1(.009) Line 5d (.009)          
Add Column 2 from lines 5a,5b,5c, and 5d Line 5e            
Total Soc. Security & Medicare Taxes   Line 5e          
Section 3121q -Notice & Demand Line 5f Line5f Line 5e Line 5e      
Number of qual.employees 1st pd exmpt wgs         Line 6a    
Number of qual.employees pd exmpt wgs         Line 6b    
Exempt wgs/tips pd to qual.employees this qtr         Line 6c    
Tx on exempt wgs/tips pd to qual.employees this qtr         Line 6d    
Total taxes before adjustments Line 6 Line 6 Line 6 Line 6e Line 6e Line 6 Line 6
Current qtr's adjustment fraction of cents Line 7 Line 7 Line 7 Line 7 Line 7a Line 7a Line 7a
Current qtr's adjustment -sick pay Line 8 Line 8 Line 8 Line 8 Line 7b Line 7b Line 7b
Current qtr's adjustments- tips/term life insurance Line 9 Line 9 Line 9 Line 9 Line 7c Line 7c Line 7c
Current qtr's Fed. income tx withholding             Line 7d
Prior qtr's Soc Security & Medicare taxes             Line 7e
Special additions to Fed income taxes             Line 7f
Special additions to Soc. Security & Medicare             Line 7g
Total Adjustments           Line 7d Line 7h -
convert to Line 7d
Total taxes after adjustments Line 10 Line 10 Line 10 Line 10 Line 8 Line 8 Line 8
Advance Earned Income Credit         Line 9 Line 9 Line 9
Total deposits for qtr Line 11 Line 11 Line 11 Line 11 Line 11 Line 11 Line 11
COBRA premium assistance payments   Line 12a Line 12a Line 12a Line 12a Line 12a  
Number of individuals provided COBRA payments   Line 12b Line 12b Line 12b Line 12b Line 12b  
Number of qual. employees pd exempt wgs Mar 19-31              
Exempt wgs/tips pd to qual.employees Mar 19-31              
Tax on exempt wgs/tips pd to qual employees Mar 19-31              
Subtotal   Line 13 Line 13 Line 13 Line 13 Line 13  
Balance Due/ Overpayment Line 12/13 Line 14/15 Line 14/15 Line 14/15 Line 14/15 Line 14/15 Line 12/13
Convert to Line 14/15
Applied Refund Indicator   Applied/refund Box Applied/refund Box Applied/refund Box Applied/refund Box Applied/refund Box Applied/refund Box
Deposit State       Line 16 Line 16 Line 16 Line 14
Covert to Line 16
Liability-Month 1 Line 14 Line 16 Line 16 Line 17 Line 17 Line 17 Line 15
Convert to Line 17
Liability-Month 2 Line 14 Line 16 Line 16 Line 17 Line 17 Line 17 Line 15
Convert to Line 17
Liability-Month 3 Line 14 Line 16 Line 16 Line 17 Line 17 Line 17 Line 15
Convert to Line 17
Business stopped paying wgs? Date final wgs paid, or Seasonal business Line 15/16 Line 17/18 Line 17/18 Line 18/19 Line 18/19 Line 18/19 Line 16/17
Designee Checkbox Indicator Pt 4, Checkbox Pt 4, Checkbox Pt 4, Checkbox Pt 4, Checkbox Pt 4, Checkbox Pt 4, Checkbox Pt 4, Checkbox
Designee PIN Pt 4, ID Number Pt 4, ID Number Pt 4, ID Number Pt 4, ID Number Pt 4, ID Number Pt 4, ID Number Pt 4, ID Number
Preparer PTIN Preparer PTIN Preparer PTIN Preparer PTIN Preparer PTIN Preparer SSN/PTIN Preparer SSN/PTIN Preparer SSN/PTIN
Preparer EIN Preparer EIN Preparer EIN Preparer EIN Preparer EIN Preparer EIN Preparer EIN Preparer EIN
Preparer Phone Number Preparer Phone # Preparer Phone # Preparer Phone # Preparer Phone # Preparer Phone # Preparer Phone # Preparer Phone #
NOTES:To convert Revision 2004 and prior year Form 941 returns for Pre-COBRA tax periods, refer to IRM 3.11.13.15 and Exhibit 3.11.13-4

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