3.11.13  Employment Tax Returns

Manual Transmittal

November 08, 2013

Purpose

(1) This transmits a revised guidance of IRM 3.11.13, Returns and Document Analysis, Employment Tax Returns.

Material Changes

(1) Editorial changes have been made throughout the IRM

(2) IRM 3.11.13.3(2)- Added information about the new Social Security tax rate and the new combined Social Security tax rate.

(3) IRM 3.11.13.6.1- Added a new section to define correspondence from taxpayers.

(4) IRM 3.11.13.8(5)- Added a new Routing address for the F2848 and F8821.

(5) IRM 3.11.13.11.5(7)- If/And/Then - 2nd "Then" box- Added a new instruction and a "Note" to ignore circled out dates from another areas.

(6) IRM 3.11.13.11.7(1)- Revised the re-entry returns procedures.

(7) IRM 3.11.13.12- Removed all the pre-addressed labels procedures from the IRM.

(8) IRM 3.11.13.12.1- Removed all the pre-addressed labels procedures from the IRM.

(9) IRM 3.11.13.12.3(1)- Removed all the pre-addressed labels procedures from the IRM

(10) IRM 3.11.13.12.4.1(1) If/And/Then- Box (6)- Clarified the procedures for the Entity Perfection - Tax Period - Form 941, Form 941-PR and 941-SS (Rev. 2005 and subsequent).

(11) IRM 3.11.13.12.5(2)- Added information that a business can have two addresses.

(12) IRM 3.11.13.12.5(3)- If/And/Then- 2nd "And" - Added a new instruction to the procedures.

(13) IR-M 3.11.13.14.11(2)- Added Line 6 Tax period 201003 and prior to the procedures.

(14) IRM 3.11.13.14.11(3)- Added If/Then procedures for tax period 201003 and prior.

(15) IRM 3.11.13.14.20- Added Revision 2014 to the procedures.

(16) IRM 3.11.13.14.21.1 - Revised subsection title; added including overpayment applied from a prior quarter and overpayment applied from Form 941-X or 944-X.

(17) IRM 3.11.13.14.21.1(2)- Clarified first "If" box procedures.

(18) IRM 3.11.13.19(2)(3)- Added two new lines to the procedures. Line 6- Total Wages Subject to Additional Medicare Tax Withholding and Line 7 for Additional Medicare Tax Withholding.

(19) IRM 3.11.13.19.1(2)- Added the 2013 transcriptions fields to the table.

(20) IRM 3.11.13.19.6 - Added a new procedure for new Line 6- Total Wages Subject to Additional Medicare Tax Withholding,

(21) IRM 3.11.13.19.7- Added a new procedure for new Line 7- Additional Medicare Tax Withholding.

(22) IRM 3.11.13.19.8- Added Line 8 (Rev 2013) to the procedures.

(23) IRM 3.11.13.19.10- Added Line 9 (Rev 2013) to the procedures.

(24) IRM 3.11.13.19.11- Added Line 10 (Rev 2013) to the procedures.

(25) IRM 3.11.13.19.13- Added Line 11 (Rev 2013) to the procedures.

(26) IRM 3.11.13.19.15- Added Line 12 (Rev 2013) and Line 14 (Rev 2013) to the procedures. Revised the rest of the lines procedures.

(27) IRM 3.11.13.19.16 (1)- Added a "Note" to the Line references.

(28) IRM 3.11.13.19.18- Revised the procedures to include the new lines numbers.

(29) IRM 3.11.13.19.19(3)- First If/Then Box- Added a new procedure for Rev 2013 (Line 11).

(30) IRM 3.11.13.19.20(1)- Added new paragraph with New Line 4d instructions.

(31) IRM 3.11.13.21 (2)- Added the Rev 2013 transcriptions lines to the table.

(32) IRM 3.11.13.21.1(1)- Revised If/And/Then procedures for Line 1.

(33) IRM 3.11.13.21.4- Added new line 4d and 4e to the procedures.

(34) IRM 3.11.13.21.6- Added Line 5 (Rev 2013) to the procedures.

(35) IRM 3.11.13.21.11.3- Revised the procedures for Line 11- Balance Due and Line 12- Overpayment.

(36) IRM 3.11.13.23.1- Added information about the two new lines (line 6 and 12).

(37) IRM 3.11.13.23.2 - Added Employer-Employee Tax Rate for 2013.

(38) IRM 3.11.13.23.3- Update Line 13 and Line 11 information.

(39) IRM 3.11.13.23.4- Update Line 14 (Rev 2013) and Line 12 (Rev 2012-2011) processing procedures.

(40) IRM 3.11.13.23.5- Update Line 15 through Line 18 (Rev 2013) and Line 13 (Rev 2012-2011) processing procedures.

(41) IRM 3.11.13.29(2) Deleted paragraph referencing original electronically filed re-entry returns.

(42) IRM 3.11.13.30- Update the 45 day Jeopardy procedures.

(43) IRM 3.11.13.33- Update the Statute Returns due date table.

(44) Deleted Exhibit 3.11.13-4- Form 941 Revision 2010 Road Map and renumbered the rest of the exhibits.

(45) Deleted Exhibit 3.11.13-5- Form 941-PR Revision 2010 Road Map and renumbered the rest of the exhibits.

(46) Deleted Exhibit 3.11.13-6- Form 941-SS Revision 2010 Road Map and renumbered the rest of the exhibits.

(47) Deleted Exhibit 3.11.13-7- Form 941 Revision 2008 Road Map and renumbered the rest of the exhibits.

(48) Deleted Exhibit 3.11.13-10- Form 943-PR Revision 2012 Road Map and renumbered the rest of the exhibits.

(49) Deleted Exhibit 3.11.13-11- Form 943 Revision 2010 Conversion Road Map and renumbered the rest of the exhibits.

(50) Deleted Exhibit 3.11.13-12- Form 943-PR Revision 2010 Road Map and renumbered the rest of the exhibits.

(51) Deleted Exhibit 3.11.13-14- Form 944 Revision 2010 Road Map and renumbered the rest of the exhibits.

(52) Deleted Exhibit 3.11.13-15- Form 944 Revision 2008 and prior Road Map and renumbered the rest of the exhibits.

(53) Deleted Exhibit 3.11.13-31- Form 941 Revision 2008 Conversion Road Map and renumbered the rest of the exhibits.

(54) Deleted Exhibit 3.11.13-32- Form 941 Revision 2013 Road Map and renumbered the rest of the exhibits

(55) Update Employment Tax Return due date table.

(56) Update Form 941 Line Comparison table.

Effect on Other Documents

IRM 3.11.13, Employment Tax Returns, dated November 16, 2012 is superseded. The following IRM Procedural Updates were incorporated in this revised IRM:
IPU 13U1227 issued July 11,2013
IPU 13U1119 issued June 19, 2013
IPU 13U1006 issued May 30, 2013
IPU 13U0977 issued May 22, 2013
IPU 13U0827 issued April 29, 2013
IPU 13U0802 issued April 24, 2013
IPU 13U0749 issued April 17, 2013
IPU 13U0571 issued March 20, 2013
IPU 13U0516 issued March 13, 2013
IPU 13U0485 issued March 6, 2013
IPU 13U0418 issued February 27, 2013
IPU 13U0400 issued February 22, 2013
IPU 13U0261 issued February 1, 2013
IPU 13U0204 issued January 25, 2013
IPU 13U0141 issued January 16, 2013
IPU 13U0019 issued January 2, 2013

Audience

Wage & Investment, Submission Processing, Document Perfection Tax Examiners

Effective Date

(01-01-2014)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.11.13.1  (01-01-2014)
General Purpose of Document Perfection

  1. The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition Image Processing System (SCRIPS). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them.

  2. Document Perfection is not responsible for checking the validity of the documents being processed. The computer will perform these functions after the returns and other documents are coded and edited as prescribed in this Section.

3.11.13.2  (01-01-2014)
Purpose of Section

  1. This section provides processing instructions for Form 941, Form 941-PR, Form 941-SS, Form 943, 943-PR, Form 944, Form 944-SP, Form 945 and Form CT-1 employment tax returns and their related documents.

  2. The instructions in the specific sections will take precedence over the general section in the case of a conflict of instructions.

  3. This section is intended as a combination working and training manual.

3.11.13.2.1  (01-01-2014)
♦BMF Consistency♦

  1. The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code & Edit (C&E) processing IRMs.

  2. Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden, and the Paper Processing Branch BMF Code & Edit/ERS.

  3. BMF Consistency Subsections are identified by a diamond (♦) symbol before and after the subsection title.

  4. The text in normal print is the common process for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

3.11.13.3  (01-01-2014)
Scope

  1. These instructions apply to Employment Tax Returns which will be processed through the Service Center Image Processing System (SCRIPS) or Integrated Submission and Remittance Processing (ISRP) and will interface with the Error Resolution System (ERS).

  2. The employee social security tax rate has been changed from 4.2% to 6.2% and the combined SS from .104 to .124. Employers are required to withhold Additional Medicare Tax from wages paid to an employee in excess of $200,000 in a calendar year. Also, the work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Previously, the credit was available for unemployed veterans who began work on or after November 22,2011, and before January 1, 2013. PL112-140, Section 309.

  3. Starting tax year 2012 and subsequent, Form 944-SS, Employer's ANNUAL Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands), and Form 944-PR, Planilla para la Declaracion Federal ANUAL del Patrono are obsolete.

    • Employers who would otherwise file a Form 944-SS will file a Form 944 (Employer’s ANNUAL Federal Tax Return), or Form 944-SP, ( Declaracion Federal ANUAL de Impuestos del Patrono o Empleador) for 2012, unless they request to file quarterly Form 941-SS (Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands).

    • Employers who would otherwise file a Form 944-PR will file a Form 944 or 944- SP( Declaracion Federal ANUAL de Impuestos del Patrono o Empleador), for 2012, unless they request to file quarterly Form 941-PR.

    • Employers required to file Form 944 should follow the procedures contained in Rev. Proc. 2009–51 or its successor to request to file Form 941–SS or Form 941–PR.

    • If the taxpayer files a Form 944-SS or Form 944-PR (Revision 2012 and prior) for tax year 2012 or 2013, convert the return to Form 944 (Rev 2013).

  4. The documents to be processed based on the instructions in this chapter are:

    • Form 941, Form 941-PR, and Form 941-SS, Employer's QUARTERLY Federal Taxes Return.

    • Effective January 1, 2012, Form 941 M, Employer's Monthly Federal Tax Return became obsolete. If you receive a loose Form 941M after 201112, give the return to your P&A analyst for forwarding to a designated person in Small Business Self Employed (SBSE).

    • Form 943 and 943- PR, Employer's Annual Tax Return for Agricultural Employees.

    • Form 944, and 944-SP , Employer's ANNUAL Federal Tax Return.

    • Form 945, Annual Return of Withheld Federal Income Tax.

    • Form CT-1, Employer's Annual Railroad Retirement Tax Return.

  5. The documents to be reviewed when attached to documents processed in this chapter:

    Note:

    These documents are detached and routed to Accounts Management for processing.

    • Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund

    • Form 941-X (PR), Ajuste a la Declaracion Federal TRIMESTRAL del Patrono o Reclamacion de Reembolso

    • Form 943-X, Adjusted Employer's Annual Tax Return for Agricultural Employees or Claim for Refund

    • Form 943-X (PR), Ajuste as la Declaracion Federal Anual del Patrono de Empleados Agricolas o Reclamacion de Reembolso

    • Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund

    • Form 944-X (SP), Ajuste a la Declaracion Federal ANUAL de Impuestos del Patrono o Reclamacion de Reembolso

    • Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund

    • Form CT-1 X, Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund

  6. Form 942, Employers Quarterly Tax Return for Household Employees, are occasionally received in C&E. Whenever one is received, please remove from the batch and send to Accounts Management (AM). These returns cannot be processed as Form 942.

3.11.13.4  (01-01-2014)
Local Desk Procedures

  1. Some Submission Processing Campuses have developed local use Desk Procedures.

  2. Such procedures are only to be used:

    • To supplement existing Headquarters' procedures,

    • To expand Submission Processing Campus Returns and Documents Analysis procedures by incorporating material for other IRMs, Automatic Data Processing (ADP) handbooks, etc.,

    • For local routing procedures, and

    • Are not limited to the examples listed.

  3. Unit managers must have a signed approval on file from the responsible Operations Manager on all Submission Processing Campus Desk Procedures.

  4. All existing local information and procedures issuance should be reviewed by the Operations Manager upon receipt of the new IRM revision to ensure conformance with Headquarters procedures.

3.11.13.5  (01-01-2014)
Unprocessable Conditions

  1. A return must contain specific items before it is considered processable. Perfect all documents to the extent possible from schedules and other attachments. The specific items needed are:

    • An Employer Identification Number (EIN)

    • A legible name (for name control)

    • A valid tax period

    • Legible tax data, if tax liability is indicated

    • A signature attesting to the perjury statement "Jurat" shown on the document

  2. Conditions which make a document unprocessable are:

    • Name so illegible or incomplete that the name control cannot be determined.

    • Employer Identification Number (EIN) is other than 9 numeric digits which cannot be perfected from information on the return or attachment.

    • The document has two or more different EINs.

    • Taxpayer has stated on the document or attachment that he/she has combined liability for more than one tax period, or more than one type of tax.

      Exception:

      Religious orders can report up to 20 calendar quarters on one return (See Publication 517). Furthermore, Section 218 agreement filers can report retroactive coverage back to the first day of the fifth Calendar Year (CY) preceding the year in which the Section 218 agreement modification is sent to the Commissioner of Social Security. For example, if a modification is sent to the Commissioner in 2011 , it can establish coverage back to 2006.

    • Tax data entries on the document are so incomplete, illegible or contradictory that the tax liability cannot be determined.

    • The document has been mis-blocked.

    • Any condition set forth as unprocessable in the sections on processing specific documents.

    • The return is unsigned or signed in the wrong location.

    • The return has only entity data and no other statements, attachments or signature by the taxpayer.

    • The return is for a tax period earlier than the Automatic Processing Date (ADP) date or later than the current return being processed. The first valid period ending - Form 941 - 196203, Form 943 - 196112, Form 944 - 200612 and Form CT-1 - 196203.

  3. Processing Unprocessable Documents when perfection is not possible -On a return with multiple EINs or an illegible name, take the following action:

    1. If the return is a numbered document, asterisk (*) to the left and line through any multiple/partial EIN(s). The record will automatically be placed on the Error Inventory of ERS to be researched on the Key Index File (KIF). If an illegible name is present, edit Action Code (AC) 320 or 352 on the return and prepare Form 4227 and notate "EIN research" for Entity research action.

    2. If the return is unnumbered, request IDRS research. If unable to locate, prepare Form 4227 with notation of "EIN research" and send to Entity.

    3. If the document is unnumbered and the EIN is missing, applied for, pending, etc., send for research per IDRS. If unable to locate EIN, prepare Form 4227 with notation of "EIN research" and sent to Entity.

    4. If a return with multiple tax periods or a tax liability is involved, a Computer Paragraph (CP) 51X should be attached.

    If ... Then ...
    The taxpayer's EIN or name cannot be determined from the attachments, or after research procedures, Numbered Returns:
    1. Enter Action Code 610 (non-remit) or 611 (remit).

    2. Prepare a Form 4227 indicating to the Rejects unit to void the DLN and properly dispose of the return in accordance with IRM 1.15.20, Records Control Schedule for Administration/Organization Support Operational Records.


    Unnumbered Returns:
    Follow the procedure in (3) above

  4. DO NOT send the following unprocessable returns to the "Suspense File" :

    Note:

    Local procedures determine where the "Suspense File" will be maintained.

    • Refund returns that receive an insufficient taxpayer's reply to make them processable or that receive no reply from the taxpayer. Enter Computer Condition Code "X" . However, if the only tax data entries are Failure To Deposit (FTD) credits or liabilities, or balance due/overpayment amounts, resolve the computation in favor of the IRS by entering a sufficient amount on the income tax withholding and total lines to prevent a refund or credit.

    • Returns bearing TC 59X in the left margin, IRC Sec. 6020(b) designation or any other return secured or prepared by a Compliance (Collection) activity.

    • Returns which are void of entity data and signature. If the only entries are figures, give the return to your supervisor for an administrative determination. Likewise, if there is an illegible signature on this type of return where even the first alpha letter of the last name cannot be determined, give it to your supervisor.

  5. All Other Unprocessable Conditions - Initiate correspondence using the Paperless Correspondences Procedures in Exhibit 3.11.13-17 or Form 13195, unless other instructions are given in the IRM.

3.11.13.6  (01-01-2014)
♦Correspondence♦

  1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable;

    Note:

    Never correspond on returns prepared by collections, IRC 6020(b) or Examination, "Substitute for Return" (SFR)

    .

    Example:

    Do not send Letter 86C when transferring a 6020 (b) Form 941-PR from Cincinnati to Ogden.

  2. Examine the return so that all of the conditions can be included in the same correspondence.

    • Form 13195 - 941/943/944/945/CT-1 Correspondence Action Sheet, or a local equivalent of Form 13195, is used to correspond on a return when a condition is present that prevents the return from being processed. See Figure 3.11.13-1

    • Paperless Correspondence Action Code Procedures - edit Action Code 211 followed by a dash (-), then the appropriate Selective Paragraph Codes from Form 13195 and any additional paragraph(s) shown on the 21C letter representing the correspondence issue. See Figure 3.11.13-2 and Exhibit 3.11.13-17 Paperless Correspondence Action Code Procedures

    • Form 6800-A - Used to send a return back to the taxpayer. Form 6800-A will only be used where indicated in this IRM.

      Note:

      Form 6800-A will be the only document to send Form(s) 941, 941-PR, 941-SS, 943, 943-PR, 944, 944-SP, 945, and CT-1 back to the taxpayer.

  3. For Form 941, 943, 944, 945 and CT-1 see below:

    IF AND THEN
    Correspondence is needed, Requires a response,
    1. Complete Form 13195 or local equivalent of Form 13195 or Paperless Correspondence indicating the letter number (21C, 86C, 100C, 854C, 1382C, 1355C, etc.), Master File Tax (MFT), and the appropriate paragraphs.
      Remember: Within these paragraphs, there may be Fill-ins that the Tax Examiner (TE) will be required to enter, such as, tax period, form number, DLN, etc.

      Note:

      It is now acceptable to receive a missing signature, forms, etc. by fax. Be sure to include the letter paragraph advising the taxpayer of this option when completing Form 13195, or the local equivalent to Form 13195.

    2. Attach Form 13195, or the local equivalent of Form 13195 , to the front of the return below the entity area.

    3. Edit AC "211" (First Correspondence) , "215" (Correspondence International) "225" (Correspondence for Signature only), or (for OSC only), "226" (International Correspondence for Signature only) on the return.

    4. Continue editing the return.

    5. Leave the return in the batch.

    Does Not require a response,
    1. Complete Form 13195 or local equivalent of Form 13195 indicating the letter number (21C, 86C, 100C, 854C, 1382C, 1355C, etc.), Master File Tax (MFT), and the appropriate paragraphs.
      Remember: Within these paragraphs, there may be Fill-ins that the tax examiner (TE) will be required to enter, such as, tax period, form number, DLN, etc.

      Note:

      It is now acceptable to receive a missing signature, forms, etc. by fax. Be sure to include the letter paragraph advising the taxpayer of this option when completing Form 13195, or the local equivalent to Form 13195.

    2. Photocopy first page of return and attach the Form 13195 or local equivalent of Form 13195 below the entity area on the front of the return. Be sure the name and address show clearly above the Form 13195 or local equivalent of Form 13195 .

    3. Edit AC "211" (First Correspondence) , or "215" (Correspondence International) on the return.

    4. Forward the copy to the correspondence area.

    5. Edit an Action Trail (e.g., "21C letter sent" ) in the lower left corner going vertically up the side of the return.

    6. Finish editing the return and leave in the batch.

    Note:

    There may be additional letters that are exclusive to the Tax Examiner's campus. These letters are for specific forms or conditions where it was deemed necessary for processing. The Tax Examiner should go to his or her Lead or Manager for copies of these letters to facilitate processing.

    Figure 3.11.13-1

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

    Return Requiring Correspondence - Edit Action Code and Attach Form 13195 941/943/944/945/CT-1 Correspondence Action Sheet

    Figure 3.11.13-2

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

    Return Requiring Correspondence - Edit using Paperless Correspondence Action Code Procedures

3.11.13.6.1  (01-01-2014)
♦Definition of Correspondence from Taxpayers♦

  1. Correspondence is all written communications from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes:

    1. Written communications in response to IRS requests for information or data.

    2. Written communications, including annotated notice responses, that provide additional information or dispute a notice.

    3. A telephone call that results in a written referral or research (Form e-4442, Inquiry Referral).

  2. The key to identifying taxpayer correspondence is to ask the following questions:

    1. Is taxpayer waiting for a response from us?

    2. Is taxpayer waiting for an action to be taken by us?

    3. Is taxpayer asking a question?

    Note:

    A Post-It-Note, Sticky Note, or some other type of note stuck on the return by another function does not constitute correspondence from the taxpayer. For instance the note may state something like the following: "Taxpayer (TP) requests penalties be waived" .

    Do not correspond.

3.11.13.7  (01-01-2014)
IRS Employee Contacts - RRA IRC 3705(a)

  1. The Restructuring and Reform Act of 1998, 3705, provides identification requirements for all IRS employees working tax related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face and written contact. In addition a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax-related matters.

  2. All IRS employees, in the field, national, and regional office, who communicate, by telephone, correspondence or face to face, with taxpayers, or their personal representatives, on tax-related matters are required to provide (at a minimum) the following information:

    • Your title (e.g.,, Mr., Mrs., Ms., Miss),

    • Your last name,

    • Your Identification Card (badge) Number.

  3. Correspondence- All correspondence must include a telephone number where the taxpayer’s question can be answered. In addition, manually generated and handwritten correspondence must include:

    • Your title (e.g.,, Mr., Mrs., Ms., Miss),

    • Your last name, and

    • IDRS, letter system, or ID card (badge) number.

  4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID card (badge) number must be used.

  5. When a taxpayer requests to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer’s inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

  6. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information.

  7. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  8. It is not necessary to repeat the ID card number (badge) on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either by telephone or in-person) their ID card (badge) number on the first contact.

  9. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. 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 a message on a taxpayer’s answering machine, review IRM 11.3.2.6.1.

3.11.13.8  (01-01-2014)
♦Routing Guide for Attachments♦

  1. All attachments to the return must be reviewed before the return can be considered processable.

    1. Attachments should only be detached when specifically instructed.

    2. Edit Action Trail(s) (e.g.,, "2848 detached" ) in the lower left margin going vertically up the side of the return.

    Note:

    When a document is detached and routed for processing edit the name and EIN, if not already present. Also, edit the Return Received Date (e.g., "MM/DD/YY" ) in the lower left margin of the detached document before routing.

  2. For all Form 941 returns Code and Edit must insure the taxpayer's EIN is on all attachments, in case they are separated from the return during processing. If the EIN is not shown on an attachment, (to be processed with the return), edit the last 4 digits of the taxpayer's EIN. Routed attachments should show the Name, full EIN, and a Received Date.

  3. Imperfect Form 941 (Rev 2005 and subsequent) - After detaching a document from the return, and only page(s) 1, 2, and (if applicable) Schedule B and Schedule R remain, Do Not pull the return, leave in "Imperfect" batch.

  4. Follow the general guidelines below written for each attachment:

    Note:

    If there is an indication on the document that it is not an original, such as "copy" etc., process as a copy and detach as necessary.

    DOCUMENT DETACH ? ACTION
    CP 207, Proposed FTD Penalty Request for Correct ROFTL Information, NO If the tax period on the return and the CP 207 are the same, send both (return and CP 207) directly to Accounts Management (AM). (Do not process the return).
    YES If the tax period on the return and the CP 207 are different, process the return and send the CP 207 and a copy of the return to Accounts Management (AM).
    CP 504/504B NO
    1. Pull CP 504/504B to the front.

    2. Route notice and return to Accounts Management.

    CP 259, 515-518, NO Route notice and return to Collections.

    Note:

    DO NOT route when there is a notation of "599" on the return.

    General Power of Attorney (POA), submitted on any document other than Form 2848 or 8821, NO Take No Action, Leave the POA attached to the return. Do not route to the CAF function.
    See Form 2848 and 8821.
    Multiple Types of tax, NO Route to Rejects.
    Multiple Tax Periods, NO See IRM 3.11.13.12.4.1.
    Other Tax Returns (original signature), YES 1. Edit a received date to the detached return.
    2. Route to the appropriate function unless specifically directed otherwise.

    Exception:

    Returns attached to a consolidated return will NOT be detached.

    State Tax Returns, original or copy with original signature, YES Route to Receipt and Control.
    Statement establishing Reasonable Cause for delinquent filing, NO Send 1382C letter, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed.
    Request for Acknowledgement NO No action required
    Remittance found, NO Immediately hand carry return and remittance to supervisor.
    Request for information or inquiries, YES
    1. Photocopy the attachment if it contains any data necessary to continue processing the return.

    2. Attach the copy to the return.

    3. Route original attachment to the proper office for necessary action.

    Requests for Installment Agreement YES Ogden - Route to Collections.
    Cincinnati - Route to Receipt and Control
    Request for adjustment to another document, YES Route to appropriate function. Attachment must contain (or enter if missing):
    • Name,
    • Address,
    •EIN, and
    •Received Date.
    Request for money transfer, YES If the taxpayer notates transfer of money to the return you are processing:
    1. Prepare Form 3465 to route the request to Accounts Management (AM).

    2. Hold the return for 2 cycles before processing.


    If the taxpayer notates transfer of money from the return you are processing:
    1. Prepare Form 3465 to route the request to Accounts Management (AM).

    2. Edit CCC "X" to freeze overpayment.

    3. Continue processing return.

    Request for Forms or Schedules NO If requesting current year forms:
    1. Prepare Form 4190.

    2. Forward to National Distribution Center (NDC) for processing.


    If Requesting prior year forms:
    1. Prepare Form 6112.

    2. Forward to National Distribution Center (NDC) for processing.

    Note:

    Form 4190 and Form 6112 are generally used for IMF requests. Therefore, enter all BMF requests for forms and/or schedules in the "Write-In" portion of the forms.

    Substitute Letter for Installment Agreement Request, YES Route to Campus Compliance (Collections).

  5. The table below contains routing instructions for specific forms or documents attached to an Employment return:

    DOCUMENT/FORM DETACH ? ACTION
    CT-1 X, Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund,   See IRM 3.11.13.16.
    SS-4, Application for Employer Identification Number (Entity Control assigned an EIN to the SS-4), YES Route to Entity Control.
    SS-4, Application for Employer Identification Number (Entity Control has not assigned an EIN to the SS-4), NO Route return with Form SS-4 attached to Entity Control.
    SS-16, Certificate of Elections of Coverage Under the Federal Insurance Contributions Act, NO Route return with SS-16 attached to Accounts Management.
    W-2, Wage and Tax Statement (any originals or copies), YES Route to Receipt and Control.
    W-2G, Certain Gambling Winnings YES Route to :
    Social Security Administration
    Wilkes Barre Operations Center
    Wilkes Barre, PA 18769
    W-3, Transmittal of Wage and Tax Statement (any originals or copies), YES Route to Receipt and Control.
    W-4, Employer's Withholding Allowance Certificate, NO Leave attached. No action is required.
    W-11, Employer's Withholding Allowance Certificate, NO Leave attached. No action is required.
    Form 433–B, Collection Information Statement for business YES Ogden - Route to Collections.
    Cincinnati - route to Route to Receipt and Control
    Form 433–D Installment Agreement YES Ogden - Route to Collections.
    Cincinnati - route to Route to Receipt and Control
    843, Claim for Refund and Request for Abatement, YES Route to Accounts Management (AM) if the tax period shown on the Form 843 is different than the return's tax period. Enter Received Date, and EIN.
    911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), YES Forward to Taxpayer Advocate Service (TAS).
    940, Schedule A, Multi-State Employer and Credit Reduction Information, NO "/" (line through) the Form 940 Schedule A to indicate non-transcribable with Form 941.
    Schedule B, Form 941 - Loose (not attached),   Route to Accounts Management (AM).
    Schedule D, Form 941, YES Route to PSC, Drop Point 4-G08.151
    Schedule R Form 941 - Loose (not attached),   Route to Accounts Management (AM).  
    Schedule R, Form 941, Allocation Schedule for Aggregate Form 941 Filers, NO See IRM 3.11.13.14 (16).
    941C, Supporting Statement To Correct Information,   Move to the front of the return and route to Accounts Management.  
    941-X, 941-X (PR), Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund,   See IRM 3.11.13.16 for verification and detaching procedures.
    942, Household Employers Quarterly Tax Return YES Send to AM.
    943-X, 943 X (PR), Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund,   See IRM 3.11.13.16 for verification and detaching procedures.
    944-X, 944 X (SP), Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund,   See IRM 3.11.13.16 for verification and detaching procedures.
    945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund,   See IRM 3.11.13.16 for verification and detaching procedures.
    1096, Annual Summary and Transmittal of U.S. Information Returns, YES Route to Receipt and Control.
    1099, (any originals), YES Route to Receipt and Control.
    1331, Notice of Adjustment, YES Route to Accounting Function
    2032, Contract Coverage Under Title II of the Social Security Act YES Route to Entity Control
    2275, Record Request, Charge and Recharge, NO Take no action.
    2678, Employer/Payer Appointment of Agent, YES Route to Entity for processing.
    2848, Power of Attorney and Declaration of Representative, YES Ogden - route to Stop 6737
    Cincinnati - route to:
    Internal Revenue Service PO Box 268, Stop 8423 Memphis, TN 38101-0268
    2859, Request for Quick or Prompt Assessment, NO Reject. Hand-Carry to Accounting (NMF) or follow local procedures.
    3198, Special Handling Notice of Examination Case Processing, NO Take no action.
    3244, Payment Posting Voucher, YES Route to Receipt and Control.
    3753, Manual Refund Posting Voucher, NO
    1. Research to determine if TC 840 has posted.

    2. See IRM 3.11.13.11.2 for CCC "O" procedures.

    3870, Request for Adjustment, YES Route to Campus Compliance.
    3893, Re-Entry Document Control, NO See IRM 3.11.13.29 for processing procedures.
    Form 3949 Information Report Referral Yes
    • Route Form 3949 according to page 2 of Form 3949 to CI, Exam, Disclosure, etc. following local procedures.

    • Continue processing the return.

     
    Form 3949-A Information Referral Yes
    • Route Form 3949-A to the Fresno Service Center.

    • Continue processing the return.

     
    4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, YES Send to:
    Social Security Administration,
    Security Records Center,
    Attn.: Religious Exemption Unit,
    P.O. Box 7
    Boyers, PA 16020.
    4219, Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes, YES Route to Compliance (Examination).
    5604, 6020(b) Action Sheet, NO No Action, Support for 6020(b) return.
    8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes, YES Route to:
    Ogden Submission Processing Campus
    Entity Control
    Ogden, UT 84201-0027.
    8275-R, Regulation Disclosure Statement, YES Route to Compliance (Examination) - process return.
    8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, YES Route to:
    Detroit Computing Center
    PO Box 32621
    Detroit, Michigan 48232.
    8655, Reporting Agent Authorization, YES Route to:
    Accounts Management (AM) Service Campus,
    MS 6748 RAF TEAM,
    1973 North Rulon White Blvd.
    Ogden, UT 84404.
    8821, Tax Information Authorization (TIA), YES Ogden - route to Stop 6737
    Cincinnati - route to:
    Internal Revenue Service PO Box 268, Stop 8423 Memphis, TN 38101-0268
    8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party- Business, is attached,   • If the mailing address information is the same and no location address is listed on Line 7 - take no action.
    • If the mailing address information is different and /or location address is listed on Line 7- detach Form 8822 /Form 8822-B and route to Entity Control following local procedures.-
    8879, IRS e-file Signature Authorization NO No action required.
    9465, Installment Agreement Request, or letter substitute, YES Ogden- Route to Collection
    Cincinnati- Route to Receipt and Control
    9779, EFTPS Business Enrollment Form, YES Send to:
    EFTPS Enrollment Processing Center
    PO Box 173788
    Denver, CO 80217-3788.
    9948, Referrals To Form NO Leave attached.

3.11.13.9  (01-01-2014)
Disposition of Documents

  1. Returns that have been batched, numbered and have been coded and edited should be routed to Data Conversion for transcribing.

  2. Returns that have not been batched, numbered and have not been coded and edited should be transmitted to the Document Perfection function for batching and numbering.

  3. Documents that are withdrawn from processing:

    IF THEN
    Leaving the Submission Processing Campus, Route to Receipt and Control for shipment.
    Not leaving the Submission Processing Campus, Transmit to the appropriate function in the Submission Processing Campus for the required action.
    Note: This includes items detached from documents to be processed that require correspondence, accounting, or other action.

3.11.13.10  (01-01-2014)
Return Editing Guidelines

  1. The following general information can be used when editing Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944,Form 944-SP,Form 945, and Form CT-1 returns.

  2. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.

  3. The following criteria should be considered when editing a document:

    1. The return line format on all returns must correspond to the current quarter's or year's (as applicable) revision, or as directed in IRM 3.11.13 procedures for the specific type of return. To convert a return to the current format, you may renumber the lines on the prior revision to the current revision.

    2. Edit all money fields as DOLLARS and CENTS, unless otherwise directed. Editing is not required for any entries less than $1.00.

    3. Edit any misplaced or illegible transcription entry to the proper transcription line, by placing an asterisk (*) to the left of the misplaced or illegible entry and edit to the proper transcription line. Editing of the Entity require an asterisk (*) to the left and lining through the item that is not to be transcribed.

      Note:

      The entry may have to be computed from other figures on the return or attachment.

    4. If numeric line items contain alpha characters, convert to numerics.

      Exception:

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

    5. If you can determine that a negative (minus) entry on a transcription line was entered on the incorrect line, asterisk (*) the entry to the left and edit it to the correct line.

  4. When editing a negative entry always edit the entry with a minus (-) sign to the left of the entry.

  5. ALL returns will be edited with the applicable code in a designated area on the return.

    Note:

    Form 941-PR, Form 941-SS, and Form 943-PR, received with a domestic address (address in the 50 states or the District of Columbia) should be processed as a Foreign Return. Do Not convert to a Domestic Return, unless directed by an attachment to the return.

  6. After editing, the return and the schedules or attachments should be in the following sequential order when placed back into the batch This will assist ISRP/SCRIPS during data transcription:

    • Return page 1

    • Return page 2 (if applicable)

    • Schedules, in sequential order, if applicable

    • Any attachments.

  7. All Receipt and Control functions were mandated to locally develop sort procedures for non-remittance returns marked "Amended" or "Corrected" (e.g., not circled). After sorting, these returns are forwarded to Accounts Management (AM) for their consideration as follows:

    IF THEN
    A non-remittance return marked "Amended" or "Corrected" (e.g., not circled) is received within Code and Edit, Do not perfect the return. Forward the return to Accounts Management (AM).
    A non-remittance return marked "Amended" or "Corrected" is circled and received within Code and Edit, Continue to perfect the return using IRM 3.11.13 procedures. Do not forward these to Accounts Management (AM). AM is attempting to re-enter (process) the return as an original.

3.11.13.10.1  (01-01-2014)
♦Types of Edit Marks♦

  1. Edit marks are edited on the return for transcription by ISRP or SCRIPS. The editing must be entered in red pen.

  2. The only items edited on the return are those to be transcribed except where specific instructions require editing of a non-transcribed item. Lines are left blank if the entry would be a zero amount unless otherwise instructed.

  3. The original entry on a return is never obliterated, altered, or erased when deleting or correcting an entry. Always exercise care to ensure the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

  4. For a description of specific edit marks, see the tables below:

    EDIT MARK SCRIPS Form 941 ISRP DESCRIPTION
    Asterisk (*) X X Used to delete tax data or to indicate that an item is not to be transcribed.

    Note:

    The asterisk must be placed to the left of the entry as close as possible.

    Exception:

    An asterisk in the signature box indicates that the signature is on an attachment or is not needed.

    Circle X X Used to remove an entry in a C&E Field Only (i.e. Action Code (AC), Computer Condition Code (CCC), Received Date, Schedule Indicator Code (SIC), Schedule R Indicator (SRI), or Tax Period).
    Line Through X X Entity Perfection Only - Used to delete data. Unless otherwise specified, a horizontal line through data will always indicate the data is being deleted from the return.

    Note:

    Always edit an asterisk, as close as possible, to the left of the lined through entry.

    Underline X X Used to identify a Name Control or Edit Mark that is to be transcribed.
    Minus Sign X X Indicates that the entry is negative.
    Decimal Point X X Indicates the separation of dollars and cents, if no distinction has been made by the taxpayer.
    Zero, dash, None X X "Zero" , "dash" , or "None" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by other IRS Functions X X Edit marks entered by another area (such as Compliance or Accounts Management (AM)) are not to be re-edited except to place the marks in the correct area.

    Note:

    If the edit mark is in other than a C&E field (i.e. Action Code, CCC, Received Date SIC, SRI or Tax Period) and the edit mark is in orange or pink ink, re-edit using red ink.

    "C/O" or "%" X X Indicates the presence of a "In-Care-Of Name" or "Care of Address"
    "/" X X A"/" through the entire page, can be used when deleting a form or schedule that is not to be transcribed; or to indicate information may be on an attached page to make the return complete.
    "/" XX "/$"
    XX represents the two digit foreign country code.
      X ISRP ONLY
    Indicates a foreign address. The two digit alpha foreign country code will be preceded by "/" and followed with "/$" . See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. This cannot be used for documents processed via SCRIPS.

3.11.13.10.2  (01-01-2014)
Disallowance of Erroneous Adjustment or Other Entries

  1. Place an asterisk (*) (Form 941 , 941PR, 941-SS, Form 943, Form 943-PR, Form 944, Form 944-SP, Form 945, or Form CT-1) to the left of an adjustment entry if there is an indication the entry is not a true adjustment of income tax withholding or Social Security/Medicare or RRTA tax liability for a prior period. Rather, the entry represents a payment of an outstanding liability or FTD. The indication can be in the form of an attachment on the return.

    1. Prepare a Form 3465, Adjustment Request, and route to Accounts Management (AM).

    2. If the taxpayer indicates that a FTD payment has been made on a return which does not provide for such payments, such as Form 8752, the money can be located on a Form 941 module and AM should be notified to transfer the money from the Form 941 module if appropriate. See Figure 3.11.13-3.

    Note:

    Photocopy related materials and attach to the back of the Form 3465 and route to Accounts Management (AM).

    Figure 3.11.13-3

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

    Deposit Made on Wrong Form

3.11.13.10.3  (01-01-2014)
Non-Taxable Returns With No Line Entries

  1. Process a signed return containing no line entries as a non-taxable return. This includes a signed return with a CP 139 attached or with a notation indicating not liable to file for the quarter such as "No Employees This Quarter" , "No Wages Paid This Quarter" , etc. Edit Schedule Indicator Code (SIC) 1. See Figure 3.11.13-4.

    Note:

    If not signed, follow Signature Correspondence procedures.

    Figure 3.11.13-4

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

    Non-Taxable Return With No Line Entries

  2. Starting January 1, 2009, a taxpayer filing under IRC 3509 for "Misclassified Employees" is instructed to file a Non-Taxable Return with a zero on Line 10, write across the top of the return "Misclassified Employees" , complete Part 5 (signature field), and attach Form 941-X to the return. When a Non-Taxable 941 return is received with "Misclassified Employees" written in the top margin and Form 941-X is attached process as follows:

    1. Edit Action Trail "94X to AM"

    2. Edit Computer Condition Code (CCC) "M"

    3. Edit CCC "X" to the return. This will prevent any payment from refunding while the adjustment is being processed.

    4. Detach Form 941-X and route to Accounts Management (AM) on Form 3465. Edit in remarks " 3509" .

    Note:

    If Form 941-X is attached, the Form 941 may not have "Misclassified Employee" written across the top of the return, look for an indication the taxpayer is filing under IRC 3509 on Form 941-X Line 22 on the September 2010 revision. The taxpayer is instructed to check the box to indicate the adjustment involves reclassified workers. When the box is checked follow the procedures above a) - c).

  3. Process a Non-Taxable return with any indication of "Final" , "No longer in business" , "Do not file this form" , "Previously Filed a Final Return" , etc., using the following table:

    IF AND THEN
    Only the Entity information is present on the return and the return is signed, There is an indication of filing a Final Return, Edit SIC 1, as applicable.

    Note:

    If there is not an entry on the "Final date you paid wages" line, do not correspond for the entry (See IRM 3.11.13.11.2 for Computer Condition Code F).

    Only the Entity information is present on the return and there are no attachments containing tax data and the return is NOT SIGNED There is an indication of filing a Final Return or an indication of Previously Filed Final Return (i.e. a date of final wages in a previous quarter)
    1. Research IDRS for status of filing requirement.

    2. If the filing requirement is finalized (closed) or there is no filing requirement for the form being filed; then destroy the return.

    3. If the filing requirement is open process the return and correspond for signature.

    Note:

    Do not destroy the return if it has been secured.

  4. A signature is not required if the taxpayer indicates that they received the wrong type of return, and that another type of return has been filed, providing the following actions are taken before CCC "F" is entered:

    1. Prepare Form 4227 (or Form 6882, IDRS/Master File Information Request), for research to be performed to determine whether the proper filing requirement has been established for the return the taxpayer states was filed. Request on the Form 4227 or 6882 to research for the entity and Master File Transaction (MFT) of the appropriate return.

    2. If research shows a filing requirement for the appropriate return, process the incorrect return as final to turn off the filing requirement.

    3. If research shows that the taxpayer does not have a filing requirement for the return he/she states should be filed, attach the research papers to the invalid return and forward to Entity Control on Form 4227 for filing requirement determination. If the filing requirement is incorrect, Entity Control will change it and notate the change on Form 4227. The return will be sent back to Code and Edit to be converted to the proper return (If the return is unsigned signature correspondence may be required).

3.11.13.10.4  (01-01-2014)
♦Foreign Currency♦

  1. For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter to resubmit in U.S. currency.

3.11.13.11  (01-01-2014)
Specific Employment Return Editing

  1. Besides editing marks on return lines, Code and Edit examiners may edit specific codes on a return in a specified location to indicate, for example, special conditions, correspondence, pre-computed penalty and interest, or a received date to a delinquent returns.

  2. Reference to Form 941 Revision 2005 and subsequent that will be processed through SCRIPS will be referred to as SCRIPS Form 941.

3.11.13.11.1  (01-01-2014)
♦Action Codes♦

  1. Action Codes are used to indicate whether correspondence, research, or some other action is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory. See Exhibit 3.11.13-13 for a list of valid Action Codes.

  2. When necessary, a three-digit Action Code will be assigned by the tax examiner (TE).

  3. Edit an Action Code for Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-SP, Form 945 and Form CT-1 in the bottom left margin of the return directly below the words "For Privacy Act..." . See Figure 3.11.13-5.

  4. Assign Action Codes in the following priority order:

    1. Action Code 310 (Statute Control). See IRM 3.11.13.33 Statute Returns.

    2. Action Code 320 (Entity Control).

    3. Action Code 4XX.

    4. Action Code 6XX.

    5. Action Code 3XX.

    6. Action Code 2XX (Correspondence).

    Exception:

    When more than one Action Code is needed attach Form 4227. If more than one Action Code of the same priority is required (e.g., 310 and 341), edit the Action Code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition. Use Action Code 211, 215, 225, or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.

    Figure 3.11.13-5
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Editing Action Code 225 . Edit the Action Code as close as possible to the words "For Privacy Act..."

  5. If more than one Action Code of the same priority is required (e.g., 310 and 341), edit the Action Code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition. See Figure 3.11.13-6.

    Note:

    For SCRIPS Perfect returns, If more than one Action Code is needed, edit the second Action Code on Form 4227, pull the return from Perfect batch and request it be merged into an Imperfect batch.

    Figure 3.11.13-6
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Two Action Codes are Required - Edit the Second Action Code on Form 4227

  6. Edit the following Action Codes when a return cannot be perfected from the information present:

    Action Code Description
    211 ( First Correspondence), • Return is illegible, incomplete, or contradictory that it is not acceptable for computer processing.
    • The taxpayer notates on the return or attachment that they are reporting tax for more than one tax period or for more than one type of tax.
    215 (International Correspondence) • Return is illegible, incomplete, or contradictory that it is not acceptable for computer processing.
    • The taxpayer notates on the return or attachment that they are reporting tax for more than one tax period or for more than one type of tax.
    225 (Missing Signature Correspondence), Unsigned returns (only issue for correspondence).
    226 (Missing Signature International Correspondence)
    OSPC Only,
    Unsigned foreign returns (only issue for correspondence).
    480 (Early Filed- Suspense), The return is an early filed current return.

    Note:

    A Form 941 filed early may be processed during the quarter shown on the return.

    610 (Renumbered Non-remittance), or
    611 (Renumbered with Remittance),
    A return is mis-blocked (e.g., Form 941 found in an 945 batch of work).
    650 ( International), • The return is an international return and must be forwarded to OSPC.
    Note: An APO/DPO/FPO address is not considered foreign.
    640 (Void), To delete the assigned DLN on the return (e.g., re-entry returns).

  7. Continue perfecting the return after editing the Action Codes.

3.11.13.11.2  (01-01-2014)
♦Computer Condition Codes (CCC)♦

  1. Computer Condition Codes (CCC) are used to identify a special condition or computation to post to the Master File (MF).

  2. Computer Condition Codes (CCC) editing location:

    1. Form 941/PR/SS (Revision 2005 and subsequent), 944-SP - edit the CCC at the end of the "You MUST fill out both pages of this form and SIGN it" line.

    2. Form 941/PR/SS (Revision 2004 and prior), 943, 943-PR, 945, and CT-1 - edit the CCC in the bottom center margin.

  3. Computer Condition Codes (CCC) description:

    Computer Condition Code (CCC) Title Explanation
    B Exempt Social Security Or Medicare Tax Edit CCC "B" when Line 4 box (Form 941) or Line 3 box (Form 944) is checked .

    CCC "B" is used to indicate that:
    a. The maximum amount of Social Security tax has been paid
    b. Wages for children under 18 years old
    c. Minister wages
    d. Railroad
    e. United Transportation Union
    f. Non-qualified Plan (IRC 457 plan)
    g. "Church Federal Insurance Contributions Act (FICA) Issue" (For additional information See IRM 3.11.13.14.5.
    h. Foreign Employer with U.S. Employees

    Form 941 and Form 944:
    1. Edit CCC "B" when all these conditions are present:
    1. Line 2 Form 941 or Line 1 Form 944 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Line 5a through 5c, (Rev 2012 or prior) or Lines 5a through 5d (Revision 2013) Column 1 and 2 (Form 941), or Line 4a through 4c Column 2 (Form 944) are blank, dash, zero (0), none, or "n/a " ,

    3. Line 4 (Form 941) or Line 3 (Form 944) is not checked, but the taxpayer is indicating being exempt from Social Security and/ or Medicare tax on the return or attachment due to one of the conditions in list a-h above.


    2. If the taxpayer indicates or notes "EXEMPT" , but does not indicate a reason: (Follow the alpha list in priority order)
    1. Review the return and attachments for an Employment Code (See Figure 3.11.13-26 for the location of the Employment Code on an IRS issued label on a Form 941, Revision October 2010 or prior. If the Form 941 return is a Revision January 2011 or subsequent the Employment Code will not appear on the return. If the Employment Code is a "C" , "F" or "G" , edit CCC "B" and continue to process the return.

    2. If you can not determine why the taxpayer is claiming to be exempt, or the Employment Code is not shown, then research IDRS (e.g., INOLE) for the Employment Code. If through research you determine the Employment Code is "C" , "F" or "G" , then edit CCC "B" and continue to process the return.

    3. After research, if the Employment Codes can not be determined or is other than "C" , "F" , or "G" :
      Form 941: edit the Line 2 amount to Line(s) 5a and 5c, Column 1 .
      Form 944: edit the Line 1 amount to Line(s) 4a and 4c Column 1.

    D Reasonable Cause for Failing To Pay Timely Edit a CCC "D" to returns prepared under IRC 6020(b) with a notation of "DO NOT ASSESS FAILURE TO PAY PENALTY" by the Revenue Officer (RO).
    CCC "D" will no longer be edited, if the taxpayer requests abatement for Failing to Pay Timely when the return is submitted. Send Letter 1382C letter, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed.
    In the cases of disaster, the examiners will be provided with coding procedures.
    F Final Return Edit CCC "F" when the taxpayer:
    1. Checks the "FINAL" box,
    2. Gives a positive indication that they are not liable to file a return in the future with a notation such as, (but not limited to ):
    – "Final"
    –"Out of Business" ,
    – "No Longer Have Employees" ,
    –"Deceased " ,
    – "Liquidation" , or
    – "Dissolved" .

    Reminder:

    If editing CCC "F" always check the final box, if not already checked.


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

    Do not edit CCC "F" when:
    1. The taxpayer elects to have a credit applied to the next return.
    2. The Date of Final Wages was not provided on a return showing tax data, See Note below.
    3. The Date of Final Wages is after the last day of the tax period.
    4. The taxpayer has indicated that he/she will not be liable to file the return in the future, AND that they are "Seasonal" . In this situation, edit CCC "T" unless the taxpayer has given the Date of Final Wages.
    NOTE:
    • If the taxpayer has indicated that they will not be liable for filing the return in the future by checking the box or by a notation on the return (i.e. "Final" , "Out of Business" , etc.) and the "Date of final wages" is blank, then:
    1. If the return shows tax data, correspond for the "Date of final wages" .

    2. If the return shows no tax data, DO NOT correspond for the "Date of final wages" . unless corresponding for signature.


    • If the taxpayer files two or more quarters or years at the same time and the return indicates that they will not be liable to file the return in the future , edit CCC "F" on the last quarterly or annual return. Also, edit remarks on each of the earlier quarterly or annual returns to indicate that the latest tax period has been edited with a CCC "F" .
    G Amended Return

    Note:

    Edited to returns processed through ISRP only.

    1. An Amended return may be identified by such wording as "Superseding " ,"Duplicate" , "Additional" or any 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. See IRM 3.11.13.24 for processing guidelines.
    2. The following procedures and conditions have been placed on the use of CCC "G"
    a. The return must be perfected for a Name Control (unless Check Digits are present), EIN, tax period, CCC "G" , Received Date, and Signature.
    b. If the return has a TC 59X or ICS which was entered by Collections or Exam and any indication of an amended return, process the return as an original return. Do not edit CCC "G" on these return.

    Note:

    All Receipt and Control functions were mandated to locally develop sort procedures for non-remittance Form 941 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 it to AM . This is a minimum standard requirement. Additionally, Code and Edit may receive returns with "Amended" , or "Corrected" circled. Do not forward these to AM. These returns are being re-input as original returns by AM. Therefore, continue to perfect these returns using Code and Edit procedures provided in IRM 3.11.13.

    Caution:

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

    J Reasonable Cause for Failing To Make Timely Deposits Edit CCC "J" when the taxpayer notates at the top of the return :
    a."3121 Agreement" (e.g., U.S., State, municipalities, or local, government agencies). These taxpayers are not required to make FTD payments. Also, edit a SIC 1 as applicable.

    Note:

    If the taxpayer only refers to IRC 3121 by providing a particular paragraph as a reference (e.g., for example, IRC 3121q) on the return or on an attachment, do not edit CCC J.


    b."PL92-603" The taxpayer is a Religious Order reporting back taxes for retroactive quarters on Form 941 but the tax has not been paid.

    Note:

    CCC "J" will no longer be edited, if the taxpayer requests abatement for Failing to Make Timely Deposits when the return is submitted. Send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed.
    In the cases of disaster, the examiners will be provided with coding procedures.

    Note:

    Do not send the return back to the taxpayer if the return has been secured.

    M Misclassified Employees- Interest Free Adjustments 1. Enter the code on the return indicating "Misclassified Employees" at the top of the return. These taxpayers are allowed interest free adjustments if certain conditions are met. Employers are instructed to write "Misclassified Employees" at the top of the return, and to indicate the date they ascertained (date the error was discovered) the error. In order for the adjustment to be interest free, the return must be filed by the due date of the return for the tax period the error was ascertained . If not, interest is computed from the original due date of the tax period for which the correction is being made. If tax is not paid by the time the adjusted return is filed, interest is computed from the time the adjusted return is filed until payment is made.

    Note:

    Beginning January 1, 2009 adjustments reported on an adjusted return (e.g.,, Form 941-X) must be paid by the time the adjusted return is filed.


    2.2008 & Prior Return Procedure: Upon identification of a "Misclassified Employees" return, do the following:
    1. Assure the information attached indicates the taxpayer ascertained the error (the date the error was discovered) before 1/1/2009.

    2. If the ascertain date is after 1/1/2009, place an asterisk to the left of the adjustment amount and edit an action trail "CP102/94X "

    3. Continue to process the return.

    O Module Freeze Computer Condition Code is entered when a Pre-Settlement Manual Refund will be made and a Form 3753, Manual Refund Posting Voucher, Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher is attached.
    a. Verify that the Name Control, EIN, and tax period on the return is the same as the data on the form.
    b. Research to determine if TC 840 (Manual Refund Transaction) has posted.
    - If TC 840 has posted, enter CCC "O" and continue processing.
    - If TC 840 has not posted, enter Action Code 344 in the left margin of the return to issue a manual refund.
    R Reasonable Cause for Failure to Timely File
    If the taxpayer requests abatement for Failing to Timely File when the return is submitted. Send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed.

    Note:

    Edit CCC "R" to the return when there is an indication such as "Do not assess failure to file penalty" on a secured return noted with "599" .


    In the cases of disaster, the examiners will be provided with coding procedures.
    T Seasonal Filer Edit CCC "T" when:
    1. The "Seasonal" filer box is checked beneath the entity area (Form 941, Rev 2004) or on Line 17 (Form 941, Rev. 2005 thru 2008) or on Line 19 (Form 941, Rev. 2009 and subsequent). .
    2.. If editing CCC "T" , check the box on Line 17 if not already checked.

    Note:

    Do not enter CCC T when there is an indication this is the Final return.

    W " Cleared by Statute" or "Approved by Statute" Stamped on Return Refer to IRM 3.11.13.33, Statute Returns.
    X Refund/ Settlement Freeze Edit CCC "X" when:
    1. The taxpayer requests that any excess remittance, after paying all the tax and penalties, be applied to another account. Follow the procedures in #3 below.
    2. There is no reply to correspondence and a refund is due. Edit CCC "3" as well.
    3. Process as Follows:
    1. Prepare Form 3465 to request transfer of the excess remittance amount to an alternate account.

    2. Notate "Form 3465 Prepared" on the margin and edit CCC "X" on the return.

    3. Photocopy the return, and attach to Form 3465.

    4. Route the package to Accounts Management (AM).

    3 No Reply to Correspondence Edit CCC "3" when the return becomes unprocessable due to no reply from correspondence, e.g. for example, correspondence for the signature.
    4 6020(b) Return • Edit CCC "4" on all Compliance (Collection or Examination) issued IRC 6020(b) returns.
    • Edit SIC 1 to Form 941, 943, 944 and 945.

    Note:

    CCC "4" cannot be used with CCC "R" .

    7 Reasonable Cause Denied CCC "7" will no longer be edited, if the taxpayer requests abatement for Failing to File or Pay Timely when the return is submitted. Send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed.
    In the cases of disaster, the examiners will be provided with coding procedures.

3.11.13.11.3  (01-01-2014)
♦Error Resolution System (ERS) Coding♦

  1. The Error Resolution System (ERS) displays data on terminal display screens with corrections made and integrity verified in a real time environment.

  2. The Code and Edit tax examiner (TE) will have the first opportunity to identify a record having a problem which requires correspondence, research or other action in order to make the return processable. The tax examiner (TE) will determine the kind of action required and assign an Action Code to the return. The code will indicate whether correspondence, research or some other action is needed.

3.11.13.11.4  (01-01-2014)
Delinquent Returns

  1. A return is normally delinquent if it is not received on or before the return due date. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ A return is not delinquent if the return is timely postmarked and mailed before, or on the due date. If the due date falls on a weekend or legal holiday, the return is timely if postmarked by the first business day following the weekend or holiday. See IRM 3.11.13.11.5 for instruction on determining the Received Date of the return.

  2. If the return is delinquent, check the return or attachments for an explanation of late filing. If found, send the taxpayer Letter 1382C, letter to inform the taxpayer that we have received their request. Do not code the return with CCC R if a pre-computed delinquency penalty is shown.

    Exception:

    For secured or prepared returns, edit the applicable CCC as indicated on the return or attachment.

  3. See Exhibit 3.11.13-10, Employment Tax Return Due Date Table for the return due dates and the return delinquent dates for Employment Returns.

3.11.13.11.5  (01-01-2014)
♦Received Dates♦

  1. The date a document is received in the Campus or IRS Office is the date stamped as the "IRS Received Date" .

  2. A valid IRS received date is required on the following returns:

    • Delinquent and any prior Quarters

    • Amended (e.g., CCC "G" coded)

    • Re-entry

    • 6020(b)

    • Substitute for Return (SFR)

    • Pre-computed penalty and interest is present.

    Note:

    Re-entry Documents that do not have a received date, edit the due date for the tax period shown on the return as the received date.

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

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

    Note:

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


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

    ≡ ≡

  4. The Received Date may or may not be stamped on the face of the return.

  5. A valid "Received Date" stamp consists:

    • The word "Received" ,

    • Month (alpha or numeric),

    • Day (for example, "1" or "01" ,

    • Year, i.e. four digits in "YYYY" format

    • Area office, Campus, field office, Taxpayer Assistance (TAC) plus the City (location or function area within one of these sites (CSO, Exam, ICT, CIS, AM, etc.)

      Exception:

      Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from an office that is not a proper place for filing, that date stamp is not the "IRS Received Date" , and you must circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date" .

  6. If a Received Date is required but is not present or the date is illegible or invalid or has been erroneously circled, edit the Received Date in the MMDDYY format in the middle of page 1 to the return. Edit the Received Date according to the following priority:

    1. The earliest legible postmark date (U.S. Postal Service, foreign postmark or Private Delivery Service) on the envelope. Rules for using the U.S. Postal Service (USPS) postmark or Private Delivery Service (PDS) postmark are as follows:

      IF THEN
      An envelope is not attached, Use the postmark date stamped on the face of the return.
      The postmark is missing and the envelope is certified Look for the "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope). Use the " Acceptance" date on the record to determine timeliness and follow normal editing procedures.
      If the " USPS.com Track & Confirm" record is not attached, no action is required.
      An envelope has a USPS and a private metered postmark, Always use the USPS postmark.
      An envelope has a foreign and private metered postmark, Always use the foreign postmark.
      An envelope has two private metered postmarks, Always use the latest private metered postmark.
      An envelope has only one private metered postmark, Use the private metered postmark.

      Note:

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

    2. Service Center Automated Processing System (SCAMPS) digital date

    3. The Revenue Officer's Signature date.

    4. The Signature date (Only if within the current year)

    5. The Julian Control date

    6. The current date minus 10 days.

  7. Edit the Received Date as follows:

    IF AND THEN
    A timely Received Date is the only received date stamped on the return,   No editing is required.
    Two or more dates are stamped on the return , ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Use the earliest stamped IRS Received Date.

    2. Circle out all other dates (handwritten or stamped) not needed for transcription.

      Note:

      Received dates that have been circled out by another function should be treated as if they are not present.

    A Federal return is addressed to the IRS, Delivered to a State agency, Use the postmark date as the received date.
    A Federal return is addressed to the State agency,   Use the IRS date stamp as the received date.
    The only Received Date on the return is a Taxpayer Advocate Service (TAS) or Chief Counsel received date,   Circled out the TAS or Chief Counsel received date and Edit the IRS Received Date according to the instructions.

    Reminder:

    If an envelope is attached to the return, always check the envelope for remittance. If found, hand carry remittance to manager.

  8. Accept a received date entered by means other than a normal date stamp (for example, a handwritten date in brown, red, orange, or green), or a typed date by an IRS employee, cash register stamp date, etc.

  9. Circle and do not enter on the return a received date under the following circumstances:

    1. The first return in a block of RPS returns, if it is date stamped, provided the return is timely filed.

    2. Returns filed by the Department of Labor under the Fair Labor Standards Act, the General Accounting Office (GAO) and Housing and Urban Development under the Davis–Bacon Act, or the National Labor Relations Board under the Labor Management Relations Act.

  10. See Figure 3.11.13-7 for an example of a correctly edited received date on a return.

    Figure 3.11.13-7

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

    Editing Correct Received Date

3.11.13.11.6  (01-01-2014)
♦Third Party Designee♦

  1. The Third Party Designee election was created to allow a designated individual to disclose information about the taxpayer regarding Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944SP, Form 945 and Form CT-1 should questions arise during processing.

3.11.13.11.6.1  (01-01-2014)
♦Third Party Designee Checkbox♦

  1. The Third Party Designee Checkbox is located above the taxpayer signature area. It indicates whether the taxpayer has elected to allow the Third Party Designee to inquire about the return as it is processed.

  2. No action is required.

3.11.13.11.6.2  (01-01-2014)
♦Third Party Designee Personal Identification Number (PIN)♦

  1. Edit an asterisk (*) to the left of the entry, if illegible. This field can be up to 5 characters long. The entry may be any combination of Alpha (A-Z) and numeric (0-9). The PIN number is self-selected by the taxpayer or designee. It is not assigned by IRS.

3.11.13.11.7  (01-01-2014)
♦Signature♦

  1. A signature and jurat is required on all returns except the following:

    1. Returns prepared under IRC 6020(b). These returns must be signed by a Revenue Officer (RO) or Compliance Services representative (See IRM 3.11.13.32.1. If the Representative’s signature is missing, route to:
      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 present in the "Signature of Initiating Collection Employee" box.

    2. Returns prepared by Examination, for example "SFR" or "Substitute for Return" (See IRM 3.11.13.32.3)

      Reminder:

      Returns secured by Examination do require a signature and jurat.

    3. Dummy returns prepared by IRS.

    4. Returns filed under IRC 501(d) (Religious or Apostolic Organizations).

    5. A blank return with a CP 139 attached (e.g., notification that Form 941 or 940 may no longer be required because four consecutive 941 tax years were received with "NO LIABILITY" ).

    6. Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter (See paragraphs (3) and (5) below).

    7. Some re-entry returns may have originally been filed electronically ("E-File" ). These returns may be identified by the presence of Mod E-File printouts in lieu of an actual return or "TRPRT PRINT DO NOT PROCESS" printed on the top margin. Do not correspond for missing signatures on these documents.

      Note:

      If the TRPRT print states "TRPRT Print Do Not Process" in the top margin, circle the words "Do Not Process" .

    Note:

    SCRIPS Form 941 (Revision 2005 and subsequent) - Edit an asterisk (*) in the left most position of the "Sign your name here" box when a signature is not required on the return.

  2. Do not correspond for a signature on CIS returns that have Form 13596 attached. See IRM 3.11.13.32, "Correspondence Imaging System (CIS) Returns" , for processing.

  3. If a signature is missing, correspond when:

    1. The return is not signed on the line designated for the taxpayers signature, or

    2. The jurat is not present on the line designated for the taxpayers signature (non-standard return).

    IF THEN
    • The return is not signed on the line designated for the signature, or

    • The jurat is not present on the line designated for the signature (non-standard return), or

    • Only the Entity information is present and there are no attachments containing tax data,

    1. Edit Action Code 225 (Correspondence for Signature Only) or 226 (International Correspondence) Corresponding for signature only.

    2. Leave in batch and continue editing.

      Note:

      Refer to Paperless Correspondence Procedures See Exhibit 3.11.13-17

    Note:

    Paper returns sent in by the filer that states their return was rejected through the E-file system require a signature. Form 8879-S is not an acceptable signature substitute for a paper return.

  4. If the jurat is altered or stricken (crossed out), See IRM 3.11.13.28, Potential Frivolous Returns.

  5. Accept a "signature declaration" (i.e. a signature with a jurat obtained through IRS correspondence) if it is attached to the return.

    1. If the "signature declaration" is altered or stricken, see Identification of Frivolous Returns in IRM 3.11.13.28.

    2. If the taxpayer responds with a self prepared "signature declaration" , it must contain the same language as the jurat on the return. i.e., "Under penalties of perjury, I declare that I have examined this return including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete."

    Note:

    SCRIPS Form 941 (Revision 2005 and subsequent) - Edit an asterisk (*) in the left most position of the "Sign your name here" box to indicate the signature declaration is attached.

  6. Since tax examiners (TE) are not expected to be handwriting experts, regulations allow us to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document.

    Note:

    Very often, a preparer will mark a signature line with an "X" to indicate where a taxpayer should sign the return. When this happens:

    IF AND THEN
    An "X" is shown in the "Sign your name here" box, There is a name shown in the "Print your name here" box, Do Not Correspond.
    An "X" is shown in the "Sign your name here" box, The "Print your name here" box is blank, Correspond with the taxpayer to obtain a signature.

  7. Facsimile Signature - Rather than actually signing each return, Revenue Procedure 2005–39 allows a officer or duly authorized agent to use a "facsimile" (computer-generated or rubber stamp) signature when filing certain forms (such as Form 941, 943, 944, 945 or CT-1). If a facsimile signature is used, the person filing the form must retain a letter, signed by the officer or agent authorized to sign the return(s) declaring under penalties of perjury that the facsimile signature appearing on the form is the signature adopted by the by the officer or agent or at his or her direction, and that the facsimile signature was placed on the return by the officer or agent or at his or her direction.

    1. A signature of an officer or duly authorized agent, etc. can be printed, typed, rubber stamped, computer generated, or affixed by some other mechanical device, and is acceptable as a signed return on Form 941, Form 943, Form 944, Form 945, or Form CT-1. A signature refers to the name of the officer or agent who attests that the information on the return is true, correct and complete. See Figure 3.11.13-8 for an example of a return that has been signed using a mechanical device

    2. The signature may appear on either "Sign your name here" or "Print your name and title" line.

    3. If no signature is found follow signature correspondence procedures in IRM 3.11.13.6

    Figure 3.11.13-8

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

    Acceptable Signature Using A Mechanical Device Under Revenue Procedure 2005-39.

  8. Only one correspondence attempt is required for a signature.

3.11.13.11.8  (01-01-2014)
♦Paid Preparer Section♦

  1. The paid Preparer Section is located below the signature area:

    • Form 941 - at the bottom of Page 2 of the return

    • Form 943 - at the bottom of the return

    • Form 944 - at the bottom of Page 2 of the return

    • Form 945 - at the bottom of the return

    • Form CT-1 - at the bottom of the return

  2. No action is required on amended returns.

3.11.13.11.8.1  (01-01-2014)
♦Paid Preparer's Tax Identification Number (PTIN)♦

  1. The paid Preparer's SSN (2009 and prior revisions) or PTIN is located next to the Preparer's signature in the PTIN box (Preparer's SSN or PTIN box ) on all employment tax returns.

  2. No action is required on amended returns.

  3. The Preparer's SSN is a nine digit number. The SSN is not valid if it is all zeroes or all nines.

  4. A Preparer's PTIN is a valid entry in the Preparer's SSN area at the bottom of Form 941. The PTIN begins with an alpha "P" and followed by an eight-digit number (e.g., PXXXXXXXX).

  5. Edit an asterisk (*) to the left of the Preparer's SSN or PTIN if it is invalid.

3.11.13.11.8.2  (01-01-2014)
♦Paid Preparer EIN♦

  1. The Preparer's Employee Identification Number (EIN) must be a nine digit number. The EIN cannot be all zeroes or all nines.

  2. Edit an asterisk (*) to the left of the Preparer's EIN if it is invalid.

3.11.13.11.8.3  (01-01-2014)
♦Paid Preparer Phone Number♦

  1. If a complete Paid Preparer Phone Number is located on the Paid Preparer's Phone Number line, no editing of this line is necessary.

  2. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10-digits, review the return and all attachments. See Figure 3.11.13-9.

    Note:

    If more than 10 digits are present, continue processing the return. Only the first 10 digits will be transcribed (captured).

    IF THEN
    A complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, Edit to the "Phone No." line.
    A complete Paid Preparer's Telephone Number is not located or the number is illegible, Asterisk to the left of the incomplete or illegible phone number. .

    Figure 3.11.13-9

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

    Paid Preparer Information - Incomplete Phone Number, Asterisk the Entry.

3.11.13.12  (01-01-2014)
♦Entity Perfection - General♦

  1. The entity area of a tax return identifies the taxpayer on the Business Master File (BMF). The entity area of the return contains the following:

    1. Employer Identification Number (EIN)

    2. Tax Period

    3. Name

    4. "In-care-of" name

    5. Address

    6. Check Digits (if any)

    Note:

    When perfecting the entity always asterisk and line through the entry that is not to be transcribed. If the taxpayer has lined through a portion of the entity also place an asterisk to the left of the entry that is not to be transcribed. If another function, i.e. Accounts Management, Compliance, etc., has circled out a duplicate name control also place an asterisk to the left and line through the name control circled.

3.11.13.12.1  (01-01-2014)
♦Entity Perfection - Name Control♦

  1. The Name Control consists of four characters or less:

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last three positions.

    2. Disregard the word "The" in the Name Control only when more than one word follows.

    Note:

    If an individual and a trade name are present and it can be determined that the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships. If other than a corporation or partnership, follow the Name Control procedures for Individuals, regardless of which line the individual name is listed.

  2. See Job Aid Document 7071A, Name Control Job Aid - For Use Outside the Entity Area, to properly determine the Name Control.

  3. Edit the Name Control as follows:

    IF AND THEN
    Able to determine the Name Control   Underline the Name Control.
    Unable to determine the Name Control, Numbered,
    1. Edit Action Code 352 (Name Research).

    2. Leave return in batch.

    Unnumbered,
    1. Research IDRS.

    2. If found, edit to the proper location.

    3. If not found, route to Entity Control.

    A return indicates the employer has filed bankruptcy (e.g., shows "RECEIVER" , "TRUSTEE" or "DEBTOR IN POSSESSION" ) in the entity area or on an attachment   Route to Entity Control following local procedures.

    Input TC 013 when there is a name change (primary and secondary) on Form CT-1 as these changes cannot be input through ISRP.

3.11.13.12.2  (01-01-2014)
♦Entity Perfection -"In-Care-Of" Name♦

  1. An "in-care-of" name can be identified by the words "in care of" or the symbol "c/o" or "%" (percent sign).

  2. Ensure that the "in-care-of" name is located above the street address.

    IF THEN
    The in-care-of name is located on the street address preceding the street address, No editing is required,
    The in-care-of name is located above the first name line or below the street address,
    1. Edit an asterisk (*) and line through the "in-care-of" name,

    2. Edit the "in-care-of" name so it appears below the first name line and above the street address beginning with the "%" or "c/o" in the first position,

    3. Continue processing the return.

    The "in-care-of" name is shown on an attachment, Edit the "in-care-of" name above the street address beginning with the "%" or "c/o" in the first position.
    The street address for the "in-care-of" name is different from the street address of the employer,
    1. As necessary, asterisk and line through the "in-care-of" street address and edit below the "in-care-of" name or edit the "in-care-of" street address below the "in-care-of" name if located on an attachment.

    2. Edit an asterisk (*) to the left and Line through the employer's street address and input "TC 014" .

    3. Continue editing the return.

    Note:

    Always Edit an asterisk (*) to the left and Line through the "in-care-of" symbol (% or c/o) if it is present with an address. Do not use the ampersand (&) or the percent sign (%) when editing the address information.

  3. A change in the "care-of name" can be determined by any of the following:

    • A check mark in the "Address change" box (Form 943 and 945), or

    • An indication that the "in-care-of" name is changed (i.e., the taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets)

    IF THEN
    An "in-care-of" name is changed but there is no indication of an address change,
    1. Edit the "in-care-of" name as shown above in (2).

    2. Continue editing the return.

    An "in-care-of" name is present and the "Address change" box is checked (or there is an indication of an address change),
    1. Edit the "in-care-of" name as shown above in (2).

    2. Correct the address, See IRM 3.11.13.12.5.

    3. Continue to process the return.

3.11.13.12.3  (01-01-2014)
♦Entity Perfection - Employer Identification Number (EIN)♦

  1. The EIN is a nine digit number (XX-XXXXXXX) assigned to identify the taxpayer.

  2. Determine the EIN as follows:

    IF AND THEN
    EIN is missing, You can determine the correct EIN from the return, attachments and/or schedules, Edit the EIN to the proper location on the return.
    The EIN is either a PTIN or ITIN, Unnumbered,
    1. Remove return from batch.

    2. Route to Entity Control following local procedures for EIN assignment.

    Numbered,
    1. Edit Action Code 320.

    2. Leave return in batch.

    Multiple EINs are present, Unnumbered,
    1. Remove return from batch.

    2. Route to Entity Control following local procedures for EIN assignment.

    Numbered,
    1. Edit Action Code 320.

    2. Leave return in batch.

    The EIN contains any of the following conditions and cannot be determined from the return, attachments and/or schedules:
    • Illegible,
    • Missing,
    • Other than 9 digits
    •All zeroes, or
    •All nines,
    Unnumbered,
    1. Research IDRS,

    2. If found, edit to the proper location,

    3. If not found, route to Entity Control following local procedures.

    Numbered,
    1. Edit an asterisk (*) to the left and Line through the illegible EINs, all zeroes, or all nines,

    2. Edit Action Code 320.

    3. Leave return in batch.

    "pending" , "applied for" , etc., is indicated in the EIN area, Unnumbered,
    1. Research IDRS,

    2. If found, edit to the proper location,

    3. If not found, route to Entity Control following local procedures.

    Numbered,
    1. Edit Action Code 320.

    2. Leave return in batch.


  3. If Page 1 and Page 2 of Form(s) 941, Form 941-PR, and Form 941-SS (Rev 2005 or subsequent) and Form 944, and Form 944-SP, are on a separate sheets make sure that the EIN is present on page 2 and matches the EIN in the entity of the first page. If the EIN is missing on Page 2, edit the last 4 digits of the EIN in the proper location. If the EIN on page 2 does not match the EIN in the entity of the first page, edit an asterisk to the left of the EIN on page 2 and edit the last four digits of the EIN to the left of the asterisk. Also ensure the EIN on Schedule B and Form 945-A, matches the EIN in the entity area of the first page of Form 941 or 944. If the EIN does not match, asterisk (*) to the left and line through the EIN and enter the last 4 digits of the correct EIN. Also, enter the last 4 digits, if there is no taxpayer entry.

  4. If a Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-SP, Form 945 or Form CT-1 is received in C&E with a EIN beginning with "69" , forward the return to Entity control for a new EIN.

    IF THEN
    Unnumbered
    1. Attach Form 4227 with remarks "69 EIN - Issue new EIN."

    2. Complete all editing before routing to Entity.

    Numbered
    1. Edit Action Code 320.

    2. Attach Form 4227 with remark "69 EIN - Issue new EIN."

    3. Complete all editing before routing to Entity and leave in batch.

3.11.13.12.4  (01-01-2014)
Entity Perfection - Tax Period - General

  1. All returns must have a tax period. If the return requires editing of the tax period it will be edited based on the form revision and the form type; quarterly or annual. Determine if the tax period must be edited using the rules for:

    1. Form 941, Form 941-PR and Form 941-SS (Rev. 2005 and subsequent),

    2. Form 941, Form 941-PR, and Form 941-SS (Rev 2004),

    3. Form 944 and Form 944-SP,

    4. Form 943, Form 943-PR, Form 945 and Form CT-1.

    Note:

    If the taxpayer enters the due date of the return instead of the tax period ending (TPE) date, perfect the tax period to reflect the tax period ending (TPE) date.

    Note:

    Consider a "taxpayer indication" a notation on the return or an attachment to the return, placed by the taxpayer.

3.11.13.12.4.1  (01-01-2014)
Entity Perfection - Tax Period - Form 941, Form 941-PR and 941-SS (Rev. 2005 and subsequent)

  1. Process Current Year Revision Form 941, Form 941-PR and Form 941-SS (Rev. 2014) as follows:

    IF AND THEN
    Note: All Tax Period references refer to 2014 period returns
    One tax period box is checked, There is no taxpayer indication on the return or attachments of another tax period, No editing is necessary.
    A tax period that agrees with the checked box has been edited on the return, No editing is necessary.
    There is an indication of a tax period elsewhere on the return or attachment that does not agree with the check box, Edit the correct tax period on top of the "Report for this quarter..." box in YYMM format.
     
    No tax period box is checked,  
    1. Review the return and the attachments for the correct tax period,

    2. If found "X" the box for the tax period indicated on the return or attachments,

      Note:

      If there is an indication the taxpayer is filing a current revision form for a tax period other than a current processing YEAR tax period, follow the instructions below.

    3. If the tax period can not be determined, "X" the box indicating the current tax period being processed.

     
     
    There is an indication the taxpayer is filing a current revision form for a tax period other than a current processing YEAR tax period,   Edit the correct tax period on top of the "Report for this quarter..." box in YYMM format.  
    The return would be considered an early filed return, All three are present on the return:
    1 - Current Year Form revision,
    2 - 3rd or 4th quarter tax period box checked,
    3 - Tax Data appears on the return,
    Edit the year of the tax period to the Prior Year (PY) (i.e. If current Year Form Revision 2014, edit the year to "2013" ). Edit the tax period above the "Report for this Quarter" box in YYMM format. See Figure 3.11.13-10

    Caution:

    This type of return can be seen in the 4th, 1st or 2nd quarter return processing time frame, when the taxpayer has access to the latest revision of Form 941.

     
    More than one Tax Period box is checked,  
    1. Review the return and attachments for a taxpayer indication of the correct Tax Period,

    2. Edit the correct tax period on top of the "Report for this quarter..." box in YYMM format,

    3. If the tax period can not be determine, edit and process the return for the earliest Tax Period shown by the taxpayer. See Figure 3.11.13-11.

     

    Figure 3.11.13-10

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

    Return Indicates an Early Filed Return, but there are Indicators on the Return that the Taxpayer is Filing a Current Year Revision of Form 941 for a 3rd or 4th Quarter Return of the Prior Year (PY).

    Figure 3.11.13-11

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

    Multiple Tax Period Boxes Checked Requiring Editing of the Tax Period above the "Report for this Quarter Box."

  2. Process Prior Year (PY) Revision Form 941, Form 941-PR and Form 941-SS (Rev. 2005 thru 2013) as follows:

    Note:

    If the tax period is 200412 or prior, the return cannot be processed through SCRIPS. Pull and rebatch to be processed through ISRP.

    IF AND THEN
    One tax period box checked, There is a taxpayer notation indicating a tax period in the current year,

    Note:

    Consider a Schedule B showing a current year as an indication a tax period in the current year,

    Edit the Form Title Year of the return to the current processing year (e.g., "2012" should be edited to "2013" ). Editing of the tax period above the "Report for this Quarter" box is not necessary. See Figure 3.11.13-12.

    Exception:

    Do NOT change the Form Title Year if doing so will make the return an early Filed Return.

    One tax period box checked ,   Edit the tax period on top of the "Report for this quarter..." box in YYMM format, based on the Form Revision and the Tax Period check box.
    No boxes checked, The returns shows a Pre-printed label or there is a taxpayer indication on the return or attachments, Edit the correct tax period based on the information on the return or attachment on top of the "Report for this quarter..." box in YYMM format. See Figure 3.11.13-13.
    There is NO indication of a Tax Period on the return or attachments, Process as a current quarter, current year return. Edit the Tax Period on top of the "Report for this quarter..." box in YYMM format.
    More than one Tax Period box is checked,  
    1. Review the return and attachments for the correct Tax Period,

    2. If the tax period can not be determine, edit and process the return for the earliest Tax Period shown by the taxpayer,

    3. Edit the correct tax period on top of the "Report for this quarter..." box in YYMM format.

    Figure 3.11.13-12

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

    Prior Revision Form 941 (Rev. January 2013) with Taxpayer Indication Filed for a Current Quarter Return - Edit Form Title Year

    Figure 3.11.13-13

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

    Form 941, Revision October 2010, Requiring The Tax Period To Be Edited Above the "Report For This Quarter" Box.

3.11.13.12.4.2  (01-01-2014)
Entity Perfection - Tax Period - Form 941, Form 941-PR, and Form 941-SS (Revision 2004 and Prior) and Form 941CG

  1. Process Form 941, Form 941-PR and Form 941-SS Revision 2004 as follows:

    IF AND THEN
    Note: All Tax Period references refer 2004 and prior period returns.
    The tax period is shown on the return or attachment,   Edit the tax period on top of the OMB box in YYMM format. See Figure 3.11.13-14.
    The tax period is missing, incomplete, or illegible,  
    1. Review the return and attachments for the correct Tax Period,

    2. If found, edit the correct tax period on top of the OMB box in YYMM format,

    3. If the tax period cannot be determined, edit the tax period for the current quarter being processed on top of the OMB box in YYMM format.

    More than one tax period is shown on the return,  
    1. Review the return and attachments for the correct tax period,

    2. If the tax period cannot be determined, edit and process the return for the earliest tax period shown by the taxpayer,

    3. Edit the correct tax period on top of the OMB box in YYMM format. See Figure 3.11.13-15.

    The taxpayer enters the due date of the return instead of the tax period ending date,   Perfect the tax period to reflect the tax period ending date.
    Processing Form 941CG,   Edit the tax period on top of the OMB box in YYMM format.

    Figure 3.11.13-14

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

    Preprinted Label and Non-Preprinted Label Requiring Editing of the Tax Period from Information on the Return - Tax Period edited above the OMB Box.

    Figure 3.11.13-15

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

    Form 941 With More Than One Tax Period Shown On The Return

3.11.13.12.4.3  (01-01-2014)
Entity Perfection - Tax Period - Form 944 and 944-SP,

  1. Process Form 944, and 944-SP as follows:

    IF THEN
    Return is for current processing year, No editing is necessary.
    Return is for prior processing year, Edit the tax period in "YY" format above the "Who Must File Form 944" . See Figure 3.11.13-16.

    Figure 3.11.13-16

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

    Form 944 with the Tax Period Edited above the "Who Must File Form 944" box

3.11.13.12.4.4  (01-01-2014)
Entity Perfection - Tax Period - Form 943, 943-PR, 945 and CT-1

  1. Process Form 943, Form 943-PR, Form 945 and Form CT-1 as follows:

    IF AND THEN
    The return entity shows only the current tax period, There is no other indication of a tax period on the return or attachment, No editing is necessary.
    The (943, 943 PR and 945) return shows only a prior tax period, There is no other indication of a tax period on the return or attachment, Edit the correct tax period above the tax year revision in the "YY" format. See Figure 3.11.13-17.
    The CT-1 return shows only a prior tax period, There is no other indication of a tax period on the return or attachment, Edit the correct tax period in the upper right portion of the entity area in "YY" format. See Exhibit 3.11.13-8.
    The taxpayer has notated on the CT-1 return or attachment the correct tax period,   Edit the correct tax period in the upper right portion of the entity area in "YY" format. See Exhibit 3.11.13-8.
    The taxpayer has notated on the (943, 943PR and 945) return or attachment the correct tax period,   Edit the correct tax period above the tax year revision in the "YY" format. See Figure 3.11.13-17.
    The tax period is missing, incomplete or illegible (Form 943, 943-PR and 945),  
    1. Review the return or attachments for the correct tax period,

    2. If found, edit the correct tax period above the tax year revision in the "YY" format.

    3. If the tax period can not be determined, edit the tax period as the current processing year tax period above the tax year revision in the "YY" format.

    The tax period is missing, incomplete or illegible (Form CT-1)  
    1. Review the return or attachments for the correct tax period,

    2. If found, edit the correct tax period in the upper right portion of the entity area in “YY” format.

    3. If the tax period can not be determined, edit the tax period as the current processing year tax period in the upper right portion of the entity area in "YY" format.

    More than one tax period is shown on the return,  
    1. Review the return or the attachments for the correct Tax Period,

    2. If the Tax Period can not be determined, edit and process the return for the earliest Tax Period shown by the taxpayer,

    3. Edit the correct Tax Period above the tax year revision in "YY" format (Form 943, 943-PR and 945). If the return is a (CT-1) edit the correct Tax Period in the upper right portion of the entity area in "YY" format.

    The taxpayer enters the due date of the return instead of the tax period ending date( 943, 943PR, 945 and CT-1),   Perfect the tax period to reflect the tax period ending date.

    Figure 3.11.13-17

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

    Form 943 with Tax Period Edited Above The Tax Year Revision in the YY format.

3.11.13.12.5  (01-01-2014)
♦Entity Perfection - Domestic Addresses♦

  1. Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified. For a list of correct street abbreviations, see Document 7475, State and Address, Abbreviations, Major City Code (MCCs), Zip Codes, and Countries.

    Exception:

    Do not perfect the address on amended returns (e.g., CCC "G" ).

  2. A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

  3. If the return requires that the city, state, or ZIP Code be changed, edit an asterisk (*) to the left and line through the incorrect entry and enter the correction in the entity where space allows.

  4. The procedures for perfection of an address are as follows:

    IF AND THEN
    There is an indication on an attachment that the address has been changed,   Edit the new address in the Entity section of the return.
    Form 8822 "Change of Address" , or Form 8822-B, Change of Address - or Responsible Party Business, is attached, Mailing address information is the same and no location address is listed on Line 7 Take no action.
    Mailing address information is different and/or a location address is listed on Line 7
    1. Detach Form 8822/Form 8822-B and route to Entity Control following local procedures,

    Both a P.O. Box and a street address are shown,  
    1. Edit an asterisk (*) to the left and Line through the street address,

    2. Notate "TC 014" in the upper left margin,

    3. Input "TC 014" .

    See Figure 3.11.13-18 and see Figure 3.11.13-19.
    The return does not have a pre-printed label and the address is a P.O. Box, The change of address box (Form 941 (revision 2004), 943, 943-PR, and 945) is checked,
    1. Edit TC 014 in the upper left margin,

    2. Input "TC 014" .

    Two street addresses are shown,  
    1. Edit an asterisk (*) to the left and Line through the second street address,

    2. Notate "TC 014" in the upper left margin,

    3. Input "TC 014" .

    See Figure 3.11.13-20.

    Note:

    The asterisk and lined through address information will be input on IDRS before the return leaves C&E.

    One street address is shown, The taxpayer changes the address to a P.O. box,
    1. Edit an asterisk (*) to the left and Line through the street address, if the taxpayer has not already done so,

    2. Notate "TC 014" in the upper left margin,

    3. Input "TC 014" .

    The city and state are not shown on the return, but are shown on an attachment,   Edit the city and state in the Entity section of the return.
    The ZIP Code is missing or illegible, Is not available from the return or attachments, See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the ZIP Code.

    Note:

    Edit the three digits followed by 01 of the first zip code listed for the applicable state (e.g.,, "99501" for Alaska).

    See Figure 3.11.13-21.
    Only the first three digits of the ZIP Code can be determined,   Edit "01" for the fourth and fifth digits.
    The address field is blank or incomplete, The address information is not available from the return or an attachment, Leave blank and allow to fallout to ERS.
    The address contains information other than a street address or P.O. box,   No perfection is necessary. ISRP & SCRIPS will enter the complete address.

    Note:

    Always edit an asterisk to the left and line through the "in care of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

    Figure 3.11.13-18

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

    Non-Preprinted Label with P.O. Box and Street Address - Edited to delete the street address

    Figure 3.11.13-19

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

    Preprinted Label - Street Address Change to P.O. Box Number

    Figure 3.11.13-20

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

    Two Street Addresses are Shown on the Return - Editing Required

    Figure 3.11.13-21

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

    Major City Address - Missing ZIP Code, See Document 7475

  5. An APO (Army Post Office), DPO (Diplomatic Post Office) and FPO (Fleet Post Office) addresses are considered domestic addresses. If an address appears as APO, DPO or FPO convert based on the ZIP Code (i.e. If the address appears as APO New York, NY 091XX; convert to APO AE 091XX). See Figure 3.11.13-22 for an example of an edited APO/FPO address. Refer to the APO/DPO/FPO Conversion Chart below:

    ZIP CODE Range Country Code
    340XX AA
    090XX - 098XX AE
    962XX - 966XX AP

    Figure 3.11.13-22

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

    Editing APO/DPO/FPO Address

3.11.13.12.6  (01-01-2014)
♦Entity Perfection- Foreign Addresses (OSPC Only)♦

  1. A foreign (international) address is any address that is not in the 50 states or the District of Columbia.

  2. Returns with a APO or FPO address are considered domestic addresses. See IRM 3.11.13.12.5.

    Note:

    All returns with a Foreign Address will be processed through ISRP. If the return is batched for SCRIPS processing, after editing, pull the return from the batch and request the return be batched for ISRP processing. If numbered take the necessary steps to cancel the DLN.

  3. Route returns with a foreign address to Ogden Submission Processing Center (OSPC) for processing. Prepare 86C letter to inform the taxpayer that the return has been sent to OSPC.

    Note:

    Form 941-PR, Form 941-SS and Form 943-PR received with a domestic address (address in the 50 states or the District of Columbia) should be processed as a Foreign Return. Do Not convert to a Domestic Return, unless directed by an attachment to the return.

  4. Returns with addresses in the following U.S. Possessions are considered to have a foreign address for processing purposes but are edited in the same way as a domestic address.

    1. A two-character alpha code must be edited for the country/possession/territory name:

      U.S. Possession Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI

    2. A ZIP code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP code if not provided. See Exhibit 3.11.13-18.

  5. All other foreign addresses are edited the same as a domestic address with the following exceptions:

    1. The foreign country must be the last entry in the address.

    2. Edit an asterisk and line through the foreign country and edit the foreign country code preceded by a "/" and followed by "/$" as the last entry in the address. See Exhibit 3.11.13-19 for official foreign country codes. See Figure 3.11.13-23 for an example of an edited return with a Foreign Address.

    3. A unique country code will be edited for returns filed with an address in Canada. See IRM 3.11.13.12.6.1, "Country Code - Canada" .

      Note:

      Submission Processing BMF Foreign Address Job Aid (Number 2324–002) provides examples for editing foreign addresses.

    4. If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico, or the Netherlands, check if the address contains a province, state or territory name.

      IF THEN
      A province, state or territory is present,
      1. Edit an asterisk and line through the province, state or territory,

      2. Edit the appropriate abbreviation. See Exhibit 3.11.13-20.

      A province, State or territory name is not present, Continue editing the return.
      Province, state or territory is shown in abbreviated format, Continue editing the return.

    5. A ZIP code is not required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.

    Figure 3.11.13-23

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

    Form 941 with a Foreign Address

3.11.13.12.6.1  (01-01-2014)
Country Code - Canada

  1. In an effort to assist Compliance with workload assignment, return filed with an address in Canada will be edited using a unique country code based on the province/territory.

    IF THEN
    The foreign address contains a Canadian Province/Territory name, or abbreviation shown in the table below,
    1. See table below to ensure the correct Canadian Province/Territory is present or edited to the return.

    2. Edit an asterisk and line through the country name.

    3. Edit the appropriate country code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address.

    The foreign address does not contain a Canadian Province/Territory or name or abbreviation shown in the table below,
    1. Edit an asterisk and line through the country name.

    2. Edit the country code "/CA/$" as the last entry in the address .

    Canadian Province/Territory Province Abbreviation Postal Code Beginning Country Code
    Alberta AB T XA
    British Columbia BC V XB
    Manitoba MB R XM
    New Brunswick NB E XN
    Newfoundland and Labrador NL A XL
    Northwest Territories NT X XT
    Nova Scotia NS B XS
    Nunavut NU X XV
    Ontario ON K, L, M, N, or P XO
    Prince Edward Island PE C XP
    Quebec QC G, H, or I XQ
    Saskatchewan SK S XW
    Yukon YT Y XY

  2. The rest of the foreign address is edited using procedures in IRM 3.11.13.12.6.

3.11.13.12.7  (01-01-2014)
Employment Codes

  1. Form 941 and 944 entities on the BMF contain an employment code. Employment Codes identify businesses which are other than normal business entities. Employment Codes may appear on a pre-addressed return label, or be displayed by some IDRS Command Code (CC) (e.g., INOLE, BMFOL). See Figure 3.11.13-24 for the location of the Employment Code on an IRS issued label.

    Note:

    In 2011, HQ Publishing Services ceased the mailing of pre-printed tax forms based on the taxpayer's filing requirements. Therefore, Employment Codes will only appear on forms with Revision Years prior to January 1, 2011.

    Employment Code Employer's Status Employment Code Numerical Equivalent Displayed By Some Command Code (CC) Liable for Social Security or Medicare?
    A A state or local government health and welfare agency acting as an agent under IRC 3504 on behalf of home care service recipients.   Taxable on both Social Security and Medicare.
    C Church or church-controlled organization opposed for religious reasons to the payment of social security and Medicare taxes. 8 Exempt from both Social Security and Medicare.
    F Federal Employer. 6 May be exempt from Social Security. Medicare is taxable.
    G State/Local Government Agency- Employer not under Section 218 agreement and files Form 941. blank May be exempt from both Social Security and Medicare.
    I Indian Tribal Government. blank Taxable on both Social Security and Medicare.
    M Maritime Industry. 4 Taxable if working inside United States.
    May be exempt if working outside the United States.
    S Foreign Subsidiary (OSPC only)- Form 2032 filed. 2 Taxable on both Social Security and Medicare.
    T State/Local Government Agency- Employer under Section 218 Agreement. 1 Taxable on both Social Security and Medicare.
    W Non-profit Organization- IRC 501(c)(3) filer. 3 Taxable on both Social Security and Medicare.

    Figure 3.11.13-24

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

    Pre-Printed Label Showing the Location of the Employment Code

3.11.13.13  (01-01-2014)
Form 941, Employer's QUARTERLY Federal Tax Return, Form 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono and Form 941-SS, Employer's QUARTERLY Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands - General

  1. There are three types of tax reported on Form 941:

    • Income Tax Withholding tax will be reported on Form 941;

    • Medicare tax will be reported on Form 941, Form 941-PR and Form 941-SS; and

    • Social Security tax will be reported on Form 941, Form 941-PR and Form 941-SS.

  2. Domestic and Foreign consideration of Form 941:

    1. Domestic -
      • Form 941: Employers whose principal place of business is in the U.S.
      • Form 941: with a foreign (international) address that is not in the 50 states or the District of Columbia (OSPC ONLY - WITH FOREIGN ADDRESS ONLY).

    2. Foreign (OSPC Only) -
      • Form 941-PR : Employers whose principal place of business is in Puerto Rico.
      • Form 941-SS: Employers whose principal place of business is in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands.

  3. Foreign Return Processing:

    1. All Forms 941 with a foreign address or an address of an U.S. possession, 941PR, and Form 941-SS, 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. APO, DPO and FPO are not considered foreign addresses.
      • 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.
      • If the return is numbered, use AC 650.

    2. Form 941-PR, and Form 941-SS, are similar to Form 941. However, they only contain Social Security and Medicare tax. The line numbers must be the same as the domestic returns. If they are not, alter the numbers to make them compatible with the transcription lines for the current revision of Form 941.

    3. Withheld Income Tax should not be reported on Form 941-PR and Form 941-SS. However, certain filers may have employees who are subject to the income tax withholding. If such filers include the income tax withholding and/or income tax withholding adjustments on the returns (such as showing the amounts in the shaded areas):

      Note:

      The following procedures will change the Filing Requirement from a Form 941-PR, or Form 941-SS, to a Form 941 filer. Care should be taken before entering this change

      :
      • Code a numbered return with AC 620 for Reject processing.
      • Prepare a substitute return for the erroneous U.S. possession return if the return is unnumbered.
      • Prepare and release promptly a Form 2363, Master File Entity Change, to change the BMF filing requirement code from "6" or "7" to "1" .

    4. Otherwise, the instructions provided for Form 941, Form 943, Form 944 or Form 945 returns filed with foreign or U.S. possession addresses) should be followed to the extent possible to process these returns. Specific procedures for these returns are:
      • An address change may be made on the returns if it will not change the Filing Requirement Code from "6" to "7" or "1" , or from "7" to "1" or "6" . Otherwise, a Form 2363 must be prepared showing TC 013.
      •See IRM 3.11.13.12.1 for instructions to follow regarding the Name Control and see Document 7071A, Name Control Job Aid - For Use Outside of the Entry Area, or determining a Name Control .

    5. Tax Periods 200812 and prior- A Social Security/Medicare Tax adjustment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must be substantiated by an attachment in English. A foreign language attachment is acceptable if the adjustment has been previously approved by an interpreter or the attachment contains an English translation. Code the return with AC 360 for routing to the interpreter, if necessary.

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

  4. Non-payroll items including backup withholding and withholding for pensions, annuities, gambling winnings, Individual Retirement Account (IRA), 401K, military pensions, etc. should be reported on Form 945, Annual Return of Withheld Federal Income Tax. See IRM 3.11.13.22, for more information on Form 945.

    IF AND THEN
    There are entries only on Lines 3, 10, 11, 14, or 15(Rev 2011), or lines 3, 8, 10, 11 and 12 Rev. 2008 & Prior, or lines 3, 8, 10, 11, and 14, for Rev 2009 or 2010) There is an indication the taxpayer is filing for Non-Payroll items. (e.g., the entity name contains such references as Employee Pension Plan, Pension, 401K Plan, Profit Sharing Plan, Retirement Fund, Lottery, IRAs, Annuity, etc.)
    1. Correspond to determine the taxpayer's intent,

    2. If their reply indicates that they should have filed and reported the entries on a Form 945, route the Form 941 to Accounts Management (AM) on Form 3465 with notation "NON-PAYROLL ON FORM 941" ,

    Note:

    This procedure will advise Accounts Management (AM) to delete the filing requirements for the Form 941 and establish new filing requirements for Form 945;
    to post any payment(s) to the correct module (e.g., Form 945 tax period) and to return the Form 941 to the taxpayer, with a letter, to explain how they must now report their tax.

    Caution:

    If it can be determined the taxpayer has a "non-qualified plan " , correspond with the taxpayer explaining that it was a wage deferred plan subject to wage withholding and must be reported on Form 941.
    For an explanation of non-qualified plan, see #5 below.

  5. "Non-qualified" Plans - Certain companies (for example, Life Insurance Companies) sell annuity contracts to participants in "non-qualified" plans or deferred compensation plans. Distribution of these contracts are payments of deferred wages subject to withholding and reportable on Form W-2 and Form 941.

    1. If the taxpayer notates on a Form 941 in the left margin, or you are able to determine that it is a "non-qualified plan" , edit CCC "B" on the return and continue to process.

3.11.13.14  (01-01-2014)
Form 941, 941-PR and 941-SS (Rev. 2005 and subsequent) Return Perfection and Line Editing

  1. All Forms 941 with a Foreign Address, Form 941-PR and Form 941-SS will be processed through ISRP. If the return is batched to be processed through SCRIPS, take the following action:

    IF THEN
    Numbered Batch, Edit Action Code 460.
    Unnumbered Batch, Pull from batch, and request the return be merged into a batch that will be processed through ISRP.

  2. Perfection procedures for each field of the entity on Form(s) 941, Form 941-PR and Form 941-SS may be found in IRM 3.11.13.12.

  3. Most Forms 941 (Rev 2005 and subsequent) returns with a domestic address must be edited and processed through SCRIPS. These returns are batched and prepared separately as either "Perfect" or "Imperfect " .

    1. "Perfect" - are returns with no attachments, such as envelopes, letters, copies of notices, internal forms for processing or routing, etc. "Perfect" returns cannot have extraneous writing on the face of the return.

    2. "Imperfect" - are returns not covered in a) above.

  4. SCRIPS Form 941 returns (Rev 2005 and subsequent), must be prepared as follows:

    1. Perfect Only Carefully remove all staples. It is permissible to cut off the left corner of the return provided no identifying information is damaged or lost (e.g., the return year, entity information, etc.).

    2. Perfect Only - Repair any large staple holes, rips and tears on the top and right hand side of the return.

    3. "Perfect" and "Imperfect " :

      IF THEN

      Note:

      If the return is damaged or print is too light (hard to read); pull the return from batch and request the return be re-batched as "OE PAPER" . Renumber the lines if necessary.

      The EIN is missing on Page 2 (i.e. one sided documents) and/or Schedule B, Edit the last four digits of the EIN in the EIN Field.
      The taxpayer completes the Form 941 (Rev 2005 and subsequent) information using orange, or pink ink, Photocopy the return to allow for processing through SCRIPS. Consider the original Form 941 as an attachment and request the document be merged into an "Imperfect" batch.
      The signature ONLY is in orange or pink ink, Edit an asterisk (*) in the left most position of the "Sign your name here" box.
      A page 1 (one sided) Form 941 (rev. 2005 and subsequent) is missing Follow local procedures to reduce the chance of duplicating letters being sent to the taxpayer. Use tools such as IDAP and IDRS (Command Code (CC) BMFOL and ERVIN) and request page 2 be associated with page 1 when possible.
      If it is not possible to associate:
      1) - Insert a blank copy of page 1,
      2) - Edit from page 2:
      1. Taxpayer's Name (If Name only research for EIN).

      2. EIN (If EIN only research for Name).

        Note:

        If Name and EIN field are blank on page 2; use the information from the envelope (if available) to research. If research cannot be performed to obtain entity information give to lead for disposition (If there is a legible signature, route to Entity for research).

      3. Tax Period (Edit the tax period in the following priority):
        • Schedule B, if applicable,
        • Current Tax Period.

      4. Address (Edit in the following priority):
        • From the envelope if name match.
        • Leave blank and allow to fall out to ERS.

      Note:

      If research is being performed in b) above obtain address information also.


      3) - Edit a Received Date as necessary,
      4) - Edit AC 211 and Correspond using Letter 21C for a missing page (Refer to Form 13195).
      A page 2 (on one sided) Form 941 (Rev 2005 and subsequent) is missing, or page 2 is from Form 940,
      Follow local procedures to reduce the chance of duplicating letters being sent to the taxpayer. Use tools such as IDAP and IDRS (Command Code (CC) BMFOL and ERVIN) and request page 1 be associated with page 2 when possible.
      If it is not possible to associate:
      1. Insert a blank copy of page 2 behind the taxpayer's page 1,

      2. Edit last 4 digits of EIN to page 2,

      3. Line through page 2 (Form 940) and attach the page to the back of the Form 941 return.

      4. Use AC 211 to correspond using Letter 21C for a missing page.

      The taxpayer encloses a duplicate page 2 (on a one sided or duplex return), Consider the extra page as an attachment and request the document be merged into an "Imperfect" batch.
      Line through (/) the duplex page 2.
      The taxpayer used only page 1 of a duplex (two sided) return and a separate page 2, 1) Photocopy the original page 1,
      2) Line through (/) the original duplex page 1 and duplex page 2, this now becomes an attachment,
      3) Request the document be merged into a SCRIPS "Imperfect" batch.
      Taxpayer used only page 2 of a duplex (two sided) return and a separate page 1, 1) Photocopy the original page 2,
      2) Line through (/) the original duplex page 1 and duplex page 2, this now becomes an attachment,
      3) Request the document be merged into a SCRIPS "Imperfect" batch.

  5. Code and Edit examiners should ensure the jurat and authorized signature are shown and are in the proper location on the return. See IRM 3.11.13.11.7., for signature editing procedures.

  6. Code and Edit should edit on the return the required information in the designated location on the foreign Form 941, Form 941-PR and Form 941-SS. See Exhibit 3.11.13-1 for the transcription lines of Form 941, (Rev 2013 or subsequent). See Exhibit 3.11.13-2 for Form 941PR. See Exhibit 3.11.13-3 for Form 941-SS.

  7. Code and Edit should edit the required information in the designated location on SCRIPS Form 941, (Rev 2005 and subsequent).

  8. After editing, Form 941, Form 941PR and Form 941-SS, schedules and attachments should be in the following sequential order when placed back in the batch:

    1. Form 941, Form 941-PR and Form 941-SS, Page 1,

    2. Form 941, Form 941-PR and Form 941-SS, Page 2,

    3. Schedule B, Report of Tax Liability for Semi-weekly Schedule Depositors, if applicable,

    4. Schedule R/Schedule R continuation sheet

    5. Attachments, if applicable.


    This will assist SCRIPS and ISRP during data transcription.

  9. Always edit money amounts in DOLLARS and CENTS.

  10. Editing is not required for any amount less than $1.00.

  11. Any line with an incorrect entry should be edited with an asterisk (*) and moved to the correct line.

    Note:

    If Line 10 (Rev. 2005-2010) shows a negative or minus entry on a large dollar ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ return, check the Schedule B to determine if it is the same amount. If so, treat the entry on Line 10 (Rev. 2005-2010) as a misplaced entry and enter the amount on Line 11 (Rev 2005-2010). If not, consider the entry as an excess of Advance Earned Income credit (for Rev 2005 through 2010). Asterisk (*) the entry on Line 10 (Rev 2005-2010), and enter the total tax amount from Line 8 (Rev 2005-2010). Calculate the difference between the amounts of Lines 8 and 10 (Rev 2005-2010), and enter the result to Line 11 (Rev 2005-2010).

  12. Verify all negative, minus, or subtracted amounts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  13. If any transcription Line entries are illegible, place an asterisk (*) to the left of the taxpayer's entry and enter the correct amount to the left of the asterisk.

  14. Code and Edit Tax Examiners (TE) should edit the correct Line number for any return Line which is unnumbered. Edit the line number to the left of the taxpayer or edited entry. Also, on Schedule B, if any daily box with an entry is unnumbered, Code and Edit should edit the applicable number for that box.

  15. Form 941 has been changed to Form 944, by crossing out 941 and writing 944 on the return. Research (INOLE) to determine the correct filing requirement for the taxpayer.

    Note:

    Follow these procedures when a Form 941 is received in Document Perfection with instructions to process as Form 944.

    IF AND THEN
    Research provides filing requirement, Filing requirement is for Form 941, Process return as a Form 941.
    Filing requirement is for Form 944, Process return as a Form 944. Asterisk (*) Line 1 and renumber the remaining - T-lines.

    Note:

    Lines 7a, 7b and 7c for Form 941 correlate with Line 6 (Line 6a Rev. 2008 & Prior) of Form 944. Compute and enter on renumbered "6" ("6a" Rev. 2008 & Prior).

    Research does not provide filing requirement,   Process return as a Form 941.

  16. Form 941 Schedule R/Schedule R Continuation Sheet:

    1. A Schedule R Indicator (SRI) "R" will generate when Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers or Schedule R Continuation Sheet is attached to Form 941.

    2. Write the last four digit of the EIN, if the EIN is not present on the Schedule R.

    3. All 941 returns with Schedule R attached MUST be processed through SCRIPS.

      Exception:

      A Schedule R attached to a Form 941 with a foreign address, Form 941-PR or Form 941-SS will be processed through ISRP. A Form 941 with a foreign address, Form 941-SS and Form 941-PR with a Schedule R attached must have the Schedule R Indicator code edited in the right margin of the return next to Line 7. See Figure 3.11.13-25

      Note:

      If a loose (not attached) Schedule R Form 941 is received - Route to Account Management.

    .

    Figure 3.11.13-25

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

    Form 941-SS with Schedule R Attached. Edit Schedule R Indicator (SRI)

3.11.13.14.1  (01-01-2014)
Line 1, Number of Employees Who Received Wages ,Tips, or Other Compensation (Rev 2005 and subsequent) -

  1. Perfect line for validity only. All alpha words must be written in numeric form. Edit an asterisk (*) to the left of the entry and edit the correct number to the left of the asterisk (*).

    Note:

    If illegible, edit to be non-transcribable by placing an asterisk (*) to the left of the entry.

    Exception:

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

  2. If the amount shown on Line 1 is a misplaced entry (the entry is in dollars and cents) and should be on Line 2 (i.e. Line 1 is the same amount shown on Line 5a and 5c or the sum of Line 5a and 5c). If Line 2 is blank, place an asterisk to the left of the entry on Line 1 and edit the amount to Line 2.

    Note:

    If the amount shown on Line 2 is the same amount shown on Line 3, place an asterisk to the left of the entry on Line 2 and edit the amount from Line 1 to Line 2. Edit the amount to the left of the asterisk.

  3. If the entry on Line 1 appears to be a number of employees for all four quarters, a number followed by a comma, space or dash and followed by another number (i.e. 24, 24, 22, 23), place an asterisk next to the entry.

3.11.13.14.2  (01-01-2014)
Line 2, Wages, Tips, and Other Compensation (Rev 2005 and subsequent) (Domestic Only) -

  1. There must be an entry on Line 2. Edit an entry to Line 2 as required based on the available information on the return or on any attachment(s). Process Line 2 as follows:

    Note:

    All line references refer to Form 941, Rev 2005 and subsequent.

    IF AND THEN
    Line 2 is zero, "none" , or blank, Line 5c, Column 1 has an entry (greater than zero or "none" ), Edit Line 5c, Column 1 amount to Line 2. See Figure 3.11.13-26.
    Lines 2, and 5a (Column 1 or 2), 5b (Column 1 or 2), and 5c (Column 1 or 2) are blank, Only Line 3 is completed,
    1. Review the return and attachments for an indication why the lines are blank,

    2. If none, correspond with the taxpayer for Lines 2 and 5a, 5b, and 5c. See IRM 3.11.13.6, before corresponding,

    Caution:

    DO NOT correspond for Line(s) 2, 5a, 5b, or 5c if there is a definite indication tax was withheld:
    • From only third party sick pay,
    • From supplemental unemployment,
    • When there is an indication that the wages are exempt from Social Security and/ or Medicare by an entry in the check box on Line 4. If so, edit CCC B.

    Line 2 has an entry of $99.99 or less, There is no significant entry on Lines 5a, 5b, or 5c (Column 1 or 2) Do not correspond for Social Security/Medicare wages.

    Figure 3.11.13-26

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

    Edit Line 2 when blank and Line 5c has an entry

3.11.13.14.3  (01-01-2014)
Line 3, Income Tax Withheld from Wages, Tips, and Other Compensation (Rev 2005 or subsequent) (Domestic Only)

  1. Perfect this line for validity. Ensure all entries are numeric in dollars and cents. If the taxpayer has entered dollars only, examiners do not have to correct the entry to dollars and cents.

  2. Do not change the entry on this line unless you are able to identify from the return or an attachment that the amount shown on the line is the difference between the correct income tax withheld for the quarter and an adjustment.

    1. If an adjustment is included with the entry on Line 3, edit an asterisk (*) to the left of the amount.

    2. Edit the correct amount of income tax withheld to Line 3, left of the asterisk.

3.11.13.14.4  (01-01-2014)
Form 8274, Church Exempt from Social Security and Medicare Taxes -

  1. Churches and qualified church-controlled organizations opposed to the payment of Social Security and Medicare taxes for religious reasons may elect exemption from the payment of the employer's share of these taxes. However, Form 8274, Certification by Churches and Qualified Church Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes, must be filed with the Entity function at the Ogden Submission Processing Campus.

  2. The electing organization must continue to withhold Federal income tax on wages, tips, and other compensation, and to report this income and the tax withheld on Form W-2, Wage and Tax Statement. The organization must also file Form 941 to report both the wages covered by the election and the wages of any employees engaged in unrelated business activities whose wages are not covered by this election and are subject to both the employee and employer's share of Social Security and Medicare taxes.

    1. The electing church or organization can permanently revoke the election by paying Social Security and Medicare taxes for wages covered under the election. If the taxpayer files a Form 941 indicating that the election is being revoked, send to Entity Control for filing requirement change.

    2. The IRS will permanently revoke the election if the organization does not file Form W-2 for two or more years and does not provide the information within 60 days after a written request by the IRS.

  3. If a Form 941 is received with no entries on Lines 3 through 7b and the taxpayer either has attached a letter to the return protesting the tax on religious grounds or has written his protest on the return, then send the return to the Entity Control function with a request to research for a Form 8274.

  4. If a Form 8274 is attached to a timely filed Form 941 (with or without entries in Lines 3 through 7b):

    1. Detach Form 8274 and notate on the form, "Detached from return with Church FICA issue." Forward the Form 8274 to:
      Ogden Submission Processing Campus
      Entity Control
      Ogden, UT 84201-0027

    2. Notate on the return's left margin, "F8274 to ECU" and process the return without any Social Security or Medicare wages being shown on the applicable lines.

3.11.13.14.5  (01-01-2014)
Form 941 with Notation, "Church FICA Issue" -

  1. The churches with the notation, "CHURCH FICA ISSUE" did not elect the exemption from Social Security and Medicare taxes permitted by IRC 3121(w).

  2. These taxpayers are forever barred from filing Form 8274. The wages must be reported on Form 941.

  3. Process a Form 941 with the notation "Church FICA Issue" as follows:

    Note:

    All line references refer to Form 941, Rev 2005 and subsequent

    IF THEN
    There are no entries on Form 941, Lines 3 through 5c (revision 2012 and prior) or Lines 3 through 5d (revision 2013), column 1 and 2,
    1. Review the return to determine if there is an entry in the Line 4 check box,

    2. If so, edit CCC "B" .
      If there is no entry in the Line 4 check box, correspond with the taxpayer for the amount of Social Security and Medicare wages since they are fully taxable,

    3. If there is no dollar entry only on column 1 and 2 Line 5c (revision 2012 or prior) or 5d (revision 2013), enter CCC "B" ,

    4. Edit SIC 3 on the return,

    5. If Form 8274 is attached to the return, see IRM 3.11.13.14.4, for procedures and continue to process the return.

3.11.13.14.6  (01-01-2014)
Line 4, Total Social Security and Medicare Wages Exempt

  1. Follow the procedures below for the box on Line 4:

    Note:

    All line references refer to Form 941, Form 941-PR and Form 941-SS (Rev 2005 and subsequent)

    IF AND THEN
    The box on Line 4 is checked,   Edit CCC "B" Continue to process. See Figure 3.11.13-27.
    The box on Line 4 is not checked, Column 1, Lines 5a, 5b, 5c and 5d are blank, dash or "None" , but Column 2, Lines 5a, 5b, 5c and 5d show entries See IRM 3.11.13.14.7 for Instructions for computing 5a, 5b, 5c and 5d Column 1 lines

    Figure 3.11.13-27
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Box on Line 4 is Checked, edit CCC B

3.11.13.14.7  (01-01-2014)
Line 5a, (Column 1), 5b, (Column 1), 5c (Column 1 ), and 5d (Column 1) Taxable Wages and Tips subject to Additional Medicare tax withholding (Rev 2013) or Line 5d, Total Social Security Wages and Tips, Total Medicare Taxes (Rev 2012 and prior ) or Line 5e , Total Social Security Wages and Tips, Medicare and Additional Medicare Taxes (Rev 2013)

  1. Process Lines 5a (Column 1), 5b (Column 1), 5c (Column 1), Line 5d (Revision 2013 )(Column 1)) and Line 5e as follows:

    Note:

    All line references refer to Forms 941, Form 941-PR, and Form 941-SS (Rev. 2013 or prior)

    IF AND THEN
    An entry appears on Line(s) 5a (Column 2), or 5b (Column 2), or 5c (Column 2) and/or 5d (Column 2 (revision 2013) , but no entry appears on Line(s) 5a (Column 1), 5b, (Column 1) 5c or 5d (Column 1) (revision 2013 ),  
    1. Take the tax amount reported in column 2, Lines 5a, 5b, 5c and/or 5d (revision 2013 ) and:
      • Multiply it by the appropriate factor in the table in Exhibit 3.11.13-12, or
      • Divide the tax amount by the sum of the Social Security tax rate (.124 (Rev 2013 , 2010 and prior) , or by .104 for (Rev 2012 and 2011) , for the Medicare rate divide by (.029) and for the Additional Medicare tax withholding by .009
      • Enter the result on the appropriate wage or tip Line(s). See Figure 3.11.13-28.

      Note:

      Factor back before using Line 2.

    2. Review the return and attachments to determine the correct amount for column 1, Line(s) 5a, 5b, 5c or 5d (revision 2013),

    3. If available, edit the correct amount for column 1, Line(s) 5a, 5b, 5c or 5d (revision 2013),

    4. Continue to process the return.

    An identical entry appears on column 1 for Lines 5a, 5b, 5c and 5d (revision 2013 ) or Lines 5a,5b and 5c (revision 2012 or prior), Consider them as a misplaced entry and correspond for the correct line entries.
    An entry has been made on column 1, Line 5b, but no tax has been entered in column 2, Line 5b,
    1. Review the return (including the entity) and attachments,

    2. Compare the column 1, Line 5b entry to the entries on Line(s) 3 (Domestic Only), 5a, 5c , 5d (revision 2012 or prior) or 5a, 5c, and 5e (revision 2013), 8, and 10, as applicable,

    3. If the Line 5b entry is equal to an amount on one of the lines referenced in Step 2, or if the box on Line 4 is checked, delete the entry in column 1, Line 5b. Place an asterisk (*) to the left of the entry,

    4. If the column 1, Line 5b entry is not equal to an amount for the lines referenced in Step 2, and the box on Line 4 is not checked, continue to process the return.

    Lines 5a, 5b, 5c (revision 2012 or prior) , or Lines 5a,5b,5c and 5d ( revision 2013) Columns 1 and 2 are blank, zero, or "None" , Line 2 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Domestic Only), or processing a foreign return,
    1. If the box on Line 4 is checked, edit CCC B and continue to process the return,

    2. If the box on Line 4 is not checked, review the return and any attachments to determine if the taxpayer is claiming to be "exempt" from Social Security and/or Medicare tax. If found, edit CCC "B" and continue to process the return. The taxpayer may claim to be exempt by indicating one of the following reasons:
      • The maximum Social Security 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 exemption from Social Security and Medicare tax when processing a foreign return.

    3. If there is no indication or reason given on the return or on any of the attachments, review the return for an Employment Code of C, F or G on the IRS label (See Figure 3.11.13-24 and Note for the location on an IRS issued label). If the Employment Code is a C, F or G, edit a CCC "B" , and continue to process the return.

      Note:

      Pre-printed IRS labels and the automatic mailing of Form 944 returns based on a taxpayer's filing requirement stopped beginning tax year 2011. Therefore, only Form 944 revisions printed prior to January 2011 may show the Employment Code on the label.

    4. If the Employment Code still cannot be determined, research IDRS (e.g., INOLE), to determine the Employment Code. If the Employment Code is other than C, F or G, edit the amount shown on Line 2 to Line(s) 5a and 5c (revision 2012 or prior) or 5a, 5c and 5d (revision 2013) Column 1 and continue to process the return.

    Exception:

    If entering Column(s) 1 or 2 for Line(s) 5a, 5b, or 5c, do not compute line 8 (Rev 2008-2010) or Line 10 (Rev 2011 and subsequent).

    Lines 5a or 5b, column 1 shows a negative entry,   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.

    Social Security wages are shown on column 1, Line(s) 5a, or 5b, but columns 1 and 2, Line 5c (revision 2013 or prior) are blank, zero, dash, or "None" The box on Line 4 is not checked, (i.e. indicating wages are not subject to Social Security and/or Medicare tax)

    Note:

    If the Line 4 box is checked, see IRM 3.11.13.14.4, (Form 8274 Church Exempt from Social Security and Medicare Taxes),

    Domestic Only:
    1. Enter the Line 2 amount to column 1, Line 5c (revision 2013 or prior)

    2. Continue to process the return.


    Foreign Only:
    1. Add column 1 Line(s) 5a and 5b, and enter amount on Line 5c (revision 2013 or prior) , column 1 See Figure 3.11.13-29.

    2. Continue to process the return.

    Social Security wages are shown on column 1, Line(s) 5a or 5b, but column 1, Line 5c (revision 2013 or prior) , is blank, zero, dash, or "None" There is an entry on column 2, Line 5c (revision 2013 or prior)
    1. Divide the tax amount by the Medicare rate (.029).

    2. Edit the result to column 1, Line 5c (revision 2013 or prior).

    3. Continue to process the return.

    An identical entry has been made on Line 5a (Column 1) and Line 5c, (Column 1) but no entries appears on Line 5a (Column 2), Line 5b or Line 5c (Column2) Line 2 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Consider them as a misplaced entry and correspond for the correct line entries.  
    Line 5d column 1 is blank (revision 2013) There is an entry in column 2 (revision 2013)
    1. Divide the tax amount by the Additional Medicare rate (.009)

    2. Edit the result to column 1, Line 5d (revision 2013)

     
    Line 5d is blank (revision 2012 or prior) There are entries (or an entry) in column 2, of Lines 5a,5b, or 5c( revision 2012 or prior) Add the entries from column 2, Lines 5a, 5b, or 5c and enter the calculated result on Line 5d.
    Line 5e (revision 2013 ) is blank, There are entries (or an entry) in column 2 of Lines 5a, 5b, 5c and/or 5d (revision 2013 ), Add the entries from column 2 , Lines 5a, 5b, 5c or 5d (revision 2013 ) and enter the calculated result on Line 5e (revision 2013 )
    There is no significant entry on Lines 5a, 5b, 5c or 5d (revision 2013 or prior). Line 2 has an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Do not correspond for Social Security/Medicare wages.

    Figure 3.11.13-28

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    Perfecting Wage and/or Tip Data

    Figure 3.11.13-29

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

    Perfecting Line 5c, Column 1 by Adding Line 5a, Column 1 to Line 5b, Column 1

  2. Domestic Only - If the taxpayer indicates they employ family members, and the Line 2 entry represents the amount of their wages, but column 1, Lines 5a and column 1, 5c does not show an entry, then edit the Line 2 amount to column 1, Line 5a and 5c. DO NOT CORRESPOND.

  3. IRC 3127 allows an employer and any employees, where both are members of a recognized religious sect or division, to elect to be exempt from Social Security and/or Medicare tax. To claim the exemption, they must file Form 4029 and describe the religious sect or division and indicate they adhere to its established tenets or teachings. Furthermore, though they may be exempt from Social Security and/or Medicare tax , the employer must withhold Federal income tax. Also, the employer must still withhold and pay the employee's share and pay the employer's share of Social Security and Medicare taxes for employees without an approved Form 4029. Form 4029, Application for Exemption from Social Security and Medicare Taxes and Wavier of Benefits, must be filed with and approved by the Social Security Administration. If the taxpayer has indicated, "Form 4029 Exempt" , or "Form 4029 Applicable" in the blank area or above Line 5a, do not question the difference between the Total Compensation Line and taxable Social Security/Medicare wages.

3.11.13.14.8  (01-01-2014)
Line 5f, Section 3121(q) Notice and Demand Tax Due on Unreported Tips (Revision 2013) or Line 5e (Revision 2011 and 2012)

  1. A Form 941 (Revision 2011 and 2012) may show a dollar amount on Line 5e or Line 5f (Revision 2013) or, on return revisions prior to January 2011, show a line notated "3121(q)" with a dollar amount. The vast majority of these returns are from taxpayers who received a Section 3121(q) Notice and Demand following a tips examination. These employers must pay the employer portion of Social Security and Medicare taxes on unreported tips shown on the Section 3121(q) Notice and Demand. These taxpayers are instructed to report the tax liability on their Form 941 for the quarter in which the IRC Section 3121(q) Notice and Demand is made.

    1. Some returns may also be submitted voluntarily by the taxpayer without a tips examination being performed.

  2. Line 5f (Rev 2013) or Line 5e (Revision January 2012 and 2011) is a transcription line. Accept taxpayer's figures as reported unless a Section 3121(q) Notice and Demand is attached indicating the amount should be higher. In that case asterisk the amount on Line 5f (Rev 2013) or Line 5e (Revision 2012 and 2011) and enter the higher amount shown on the Notice and Demand. The taxpayer may report more tax than what is indicated on the Notice and Demand. Do not reduce the amount.

    Caution:

    Entries on Line 5f (Rev 2013) or Line 5e (Rev 2012 and 2011) are not common. If the entry on Line 5f (Rev 2013) or Line 5e (Rev 2012 and 2011) is the sum of Lines 3 and 5e (Rev 2013) or Line 5d (Rev 2012 and 2011), asterisk the entry on Line 5f (Rev 2013) or Line 5e (Rev 2012 and 2011) as a misplaced entry.”


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