- 3.11.15.1 Overview
- 3.11.15.2 General Editing Guidelines
- 3.11.15.3 Perfecting Unprocessable Documents
- 3.11.15.4 Examination of Attachments
- 3.11.15.5 Special Conditions
- 3.11.15.6 ♦Received Date♦
- 3.11.15.7 ♦Signature♦
- 3.11.15.8 Tax Period
- 3.11.15.9 ♦Entity Perfection--General♦
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The information captured on Form 1065 is used by several functions within the Internal Revenue Service. For example, Statistics of Income tabulates the data and shares it with agencies outside of the Internal Revenue Service. All information is then used in developing the Gross Domestic Product (GDP) and in the economical module of tax law changes.
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The purpose of Document Perfection is to code and perfect (edit) documents being input to the Automated Data Processing (ADP) System to make them adaptable to computer processing and to recognize and properly dispose of accompanying attachments.
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Beginning 1-1-2001, partnerships with more than 100 partners must file Form 1065, U.S. Return of Partnership Income, electronically. The electronic filing was mandatory beginning with tax year 2000 returns filed in 2001.
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The Restructuring and Reform Act of 1998, Section 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.
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All IRS employees 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:
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Telephone Contact – Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number.
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Face to Face Contact – Their title (e.g., Mr., Mrs., Ms., Miss), provided as appropriate during the conversation, their last name and badge identification (ID Card) number.
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Correspondence – All correspondence must include a telephone number where the taxpayer's question can be answered. In addition, manually generated and handwritten correspondence must have their title (e.g., Mr., Mrs., Ms., Miss), last name, and IDRS (Integrated Data Retrieval System) number, letter system number, or their badge identification (ID Card) number.
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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 badge identification (ID Card) number must be used. Toll-free employees may also provide their location for identification purposes. Faxes to taxpayers on tax-related matters is considered manually-generated correspondence and must include the required information.
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Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.
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When a taxpayer requests to speak with a specific employee who previously handled their 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.
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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.
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Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.
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Secretaries, receptionists or other people who answer the telephone in functional offices need to identify themselves and should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to provide tax or account information.
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It is not necessary to repeat the badge identification (ID Card) number 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 telephone or in-person) his or her ID Card (badge) number on the first contact.
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The National Taxpayer Advocate has reached agreements with the Commissioners, Wage & Investment (W&I) Division, Small Business & Self Employed (SB/SE) Division, Tax Exempt & Government Entities (TE/GE) Division, Criminal Investigations (CI), Appeals and Large & Mid-Size Business (LMSB), That outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).
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The SLAs are located at http//tas.web.irs.gov under the heading "Policy Procedures/Guidance" .
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Refer taxpayers to the Taxpayer Advocate Service (TAS) when the contact meets TAS criteria as found in IRM 13.1.7, Taxpayer Advocate Case Criteria, and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.
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Form 1065, U.S. Return of Partnership Income is an information return used to report the income, deductions, gains, losses, etc., from the operation of a partnership. A partnership does not pay tax on its income but "passes through" any profits or losses to its partners. Partners must include partnership items on their tax returns.
Exception:
Partnership returns identified as a "PUBLICLY TRADED PARTNERSHIP " will pay a tax on income derived from the active conduct of all trades and businesses of the partnership (per IRC Section 7704(g)(3)(A) ). These returns will have the annotation "3.5% GROSS INCOME TAX" on the return or attachment or between Lines 21 and 22 of the Form 1065 (below the Ordinary Business Income (Loss) amount) ( See IRM 3.11.15.58.).
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Due date for Form 1065 is April 15.
Note:
The due date for a partnership return is the 15th day of the 4th month following the close of the taxable year. For calendar year returns the due date is April 15.
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See IRM 3.30.123 for processing cycle timeliness.
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The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code & Edit processing IRMs.
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Topics for the BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF Code & Edit/Error Correction.
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BMF Consistency subsections are identified by a ♦ (diamond) before and after the title.
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Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.
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The following general information can be used when editing Form 1065 returns.
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General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.
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All income and deductions amounts must be entered in dollars only.
Reminder:
Do not edit a vertical line, 00, dash or decimal point in a dollars and cents field when the partnership has entered dollars only.
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Do not edit brackets or parentheses around amounts clearly indicated to be negative by the presence of a minus sign (-).
Reminder:
It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.)
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Instructions for editing Schedules K-1 are in IRM 3.0.101.
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Received date is edited in MMDDYY format.
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The proper presentation of income and deduction items for subsequent input by the Integrated and Remittance Processing System (ISRP) and computer processing is essential. Document Perfection is responsible for arranging the return in the following order:
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Form 1065, page 1
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Form 1065, page 2
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Form 1065, page 3
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Form 1065, page 4
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Form 1065, page 5
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Schedule F
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Form 8825
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Form 8913.
Note:
Place all Schedules K-1 (Form 1065), filed as attachments to Form 1065, as the last attachment in the package or follow local agreement. Detach current year Schedules K-1 through November 30th and all future year Schedules K-1. See IRM 3.0.101 for Schedule K-1 editing procedures.
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If a current/prior year return is filed on a tax form for other than the current tax year, convert the tax return to the current year format using the prior year conversion charts found in job aid book..
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If a current year (2009) return is filed on a 1997-2008 tax form, renumber the prior year return to comply with current year line numbers.
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If a current year (2009) tax form is used to report prior year tax information, edit the tax period to reflect the prior year.
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If the prior return is filed on a prior year 1065 tax form, renumber the prior year form to current year format (1997 and subsequent).
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Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through ISRP. The editing can be entered in brown, red, orange, purple or green pencil/pen.
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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.
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The original entry on a return is never obliterated, altered or erased when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.
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For a description of specific edit marks, see the table below:
Edit Mark Description "X" or "/" The "X" is used to delete tax data or to indicate that an item is not to be transcribed. A "/" can be used when deleting a form or schedule not being transcribed. "//$" The "//$" is used in the entity area to identify the beginning and ending of a foreign country code. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany" . "c/o" or "%" Indicates an "in-care of" name for transcription. Circle Indicates that an entry is not to be transcribed. Also used to delete Entity data or a Received Date. Note:
If the partnership circles an entry, edit the entry.
Underline Indicates that an entry is to be transcribed (e.g., Name Control, Tax Period, etc.). Arrow Indicates the correct placement of a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there is no question where the entry belongs. Note:
A double arrow may be used if the same figure is to be transcribed in two different places (along with any required transcription data between the two arrows). Do not use a double arrow if there are entries between the entry that needs to be edited to the blank line.
Check Mark Indicates that an entry has been manually math verified and is correct. Bracket/Parenthesis Indicates a negative numerical amount. Note:
C&E is not required to bracket negative amounts when brackets are preprinted on the form or schedule or when the partnership clearly indicates a negative amount with brackets () or "-" sign. It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.)
Vertical Line or Decimal Point Indicates the separation of dollars and cents if no distinction has been made by the partnership. Zero, Dash or None "ZERO" , "DASH" or "NONE" are considered valid entries except when specific instructions require editing of an entry. Edit Marks Made by Other IRS Functions Edit marks entered by other areas, such as Collection or Accounts Management, are not to be reedited except to place the marks in the correct area. Rocker Indicates the amount paid when drawn under a remittance amount.
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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.
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When necessary, a three-digit Action Code will be assigned by the tax examiner.
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Edit the Action Code in the bottom left margin of the return.
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Assign Action Codes in the following priority:
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Action Code 310 (Statute Control).
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Action Code 320 (Entity Control).
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Action Code 4XX.
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Action Code 6XX.
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Action Code 3XX.
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Action Code 2XX (Correspondence).
Exception:
Use Action Code 211, 215, 225 or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.
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Attach Form 4227 when:
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More than one action code is needed. Edit the second Action Code on Form 4227.
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If more than one Action Code of the same priority is required (e.g., 440 and 480), edit the Action Code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition.
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Edit the following Action Codes when a return cannot be perfected from the information present:
Action Code Description 211 (First Correspondence) or 215 (International Correspondence) • Return is so illegible, incomplete or contradictory that it is not acceptable for computer processing.
• The partnership 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 return (only issue for correspondence) 226 (Missing Signature International Correspondence) • Unsigned foreign return (only issue for correspondence) 610 (Renumbered Non Remittance) or
611 (Renumbered with Remittance• A return is mis-blocked (e.g., Form 1065 is found in a 1120 batch of work. 650 (International) • The return is an international return and must be forwarded to OSPC. 640 (Void) • To delete the assigned DLN on the return (e.g., Re-entry Returns). -
Continue perfecting the return after editing the Action Codes.
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Valid action codes are listed below:
Action Code Description Workday Suspense Period 211 First Taxpayer Correspondence 40 212 Second Correspondence 25 215 International Correspondence 45 225 Taxpayer Correspondence (Signature Only) 40 226 International Correspondence (Signature Only) 45 310 Statute Control 10 320 Entity Control 10 331 Frivolous Argument (Cincinnati) 10 341 Manual Refund 10 352 Name Research 3 360 Other-in-House Research 10 440 Frivolous Argument (Ogden) 10 480 Early Filed Suspense 15 610 Renumber - Non-remit 0 611 Renumber - Remit 0 640 Void 0 650 International 0
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Perfect all documents if possible. Examine schedules and other attachments for the information necessary to make the document processable and edit the information on Form 1065.
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Form 4227, Intra-SC Reject or Routing Slip, must be attached on unprocessable documents when instructed in the IRM.
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When perfection is not possible on a numbered document:
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Edit to extent possible.
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Leave the document in the batch.
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Edit the appropriate action code on the bottom left hand corner of the return.
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When perfection is not possible on an unnumbered document:
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Discontinue editing.
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Withdraw the document from the batch.
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Use local procedures for review.
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If liability for two or more Form 1065 returns for the same tax class have been reported on one return and the information necessary for the preparation of the individual returns is present:
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Adjust line entries on the multiple period return to reflect liability for the earliest period and prepare additional period returns.
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Retain all the unnumbered returns in the batch.
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If the original return is a numbered document, edit Action Code "360" on the bottom left hand corner of the front of the return and leave it in the block.
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If the Name Control cannot be determined on:
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Unnumbered – Follow local research procedures to obtain a name control. (See IRM 3.13.2, BMF Account Number)
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Numbered – Edit Action Code "320" for later routing to Entity Control.
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Employer Identification Number (EIN) other than nine digits, EIN missing, or multiple EIN's:
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Unnumbered – Follow local research procedures to obtain EIN.
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Numbered – Edit Action Code "320" for later routing to Entity Control. ( See Figure 3.11.15-1.)
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Return is misbatched –
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Unnumbered – Follow local procedures.
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Numbered – Edit Action Code "610" and leave in block.
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For all other conditions, initiate correspondence action when the document cannot be perfected from attachments or schedules.
Figure 3.11.15-1
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Send correspondence to the partnership to resolve any condition that causes the return to be unworkable or unprocessable.
Exception:
Do not correspond with the partnership when there is an indication on the return that no transactions transpired during the tax year. All entries are zero (0).
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Examine the return so that all of the conditions can be included in the same correspondence.
If... And... Then... Correspondence is needed requires a response -
Complete approved Correspondence Action Sheet indicating the letter number (86C, 854C, 1355C, 3875C, etc.), MFT (Master File Tax), number of copies and the appropriate paragraphs.
Note:
Within these paragraphs, there may be Fill-ins that the tax examiner will be required to enter, such as, tax period, form number, DLN, etc.
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Attach approved Correspondence Action Sheet to the front of the return below the entity area.
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Edit Action Code "211" or "215" on the return.
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Continue editing the return.
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Leave the return in the batch.
Correspondence is needed does not require a response -
Complete approved Correspondence Action Sheet indicating the letter number (86C, 854C, 1355C, 3733C, 3875C, etc.), MFT, number of copies and the appropriate paragraphs.
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Photocopy first page of the return and attach the approved Correspondence Action Sheet below the entity areas on the front of the copy of the return. Be sure the name and address shows clearly above the approved Correspondence Action Sheet.
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Forward the copy to the Correspondence area.
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Edit an Action Trail (e.g., "3875C SENT" ) in the lower left corner going vertically up the side of the return.
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Finish editing the return and leave in 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.
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Correspondence Imaging System (CIS) is an inventory system for scanning all Account Management (AM) receipts into digital images and working the cases from those images.
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"CIS" returns are identified with "CIS Image-Do not correspond for Signature" stamped below the signature line or "CIS" annotated on the front of the return.
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Verify all edit marks on a "CIS" return.
If... Then... The edit marks are black, Underline the edit mark if correct or circle if incorrect. The edit marks are red or green, Circle if incorrect. -
Follow the instructions below for processing "CIS" returns:
If... And... Then... The "CIS" return has a Form 13596 attached Note:
If there is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), do not route the return to Accounts Management. Continue processing the return.
The return is not complete (e.g., missing signature, schedules or forms) Remove the return from the batch and route to Accounts Management. Note:
Do not correspond for missing information on "CIS" reprocessable/reinput returns.
The "CIS" return does not have a Form 13596 attached The return is not complete (e.g., missing signature, schedules or forms) Follow normal correspondence procedures.
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Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.
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Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.
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Code & Edit examiners will indicate the fax paragraph on the Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet established through local procedures) to advise taxpayers of the option to fax their response.
Caution:
Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3 , Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1 , Leaving Information on Answering Machines/Voicemail. Fax procedures contained in IRM 11.3.1.10 , Facsimile Transmission of Tax Information must be reviewed prior to faxing confidential information to the taxpayer.
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Ogden Campus Submission Processing (OSPC) will process all foreign address returns.
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A foreign address is any address other than the 50 states and the District of Columbia.
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An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not considered a foreign address. The Postal Service established new address requirements for the APO/FPO addresses.
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If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP Code: For example, if the old address appears as "APO New York, NY 091XX" , convert to read as "APO AE 091XX" .
ZIP Code State Code 340 AA 090–098 AE 962–966 AP -
Route returns with a foreign address to OSPC for processing. Prepare Letter 86C to inform the partnership that the return has been sent.( See Figure 3.11.15-2.)
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U.S. Possessions/Territories - The following U.S. Possessions/Territories are considered foreign addresses and must be sent to OSPC for processing:
US Possession/Territory Abbreviation American Samoa AS Federated States of Micronesia FM Guam GU Marshall Islands MH North Mariana Islands MP Palau PW Puerto Rico PR Virgin Islands (U.S.) VI -
A ZIP Code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP code if one is not provided. See Exhibit 3.11.15-7.
Figure 3.11.15-2
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A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 4.10.12.1.1 , Frivolous Return Program See Exhibit 3.11.15-11.
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Review the return to determine whether it appears to be a frivolous return.
If... Then... The return meets any of the conditions identified as a frivolous return. ( See Exhibit 3.11.15-11.) Caution:
If the return shows Action Code 440 (OSPC) or 331 (CSPC), and has a Form 4227 attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure.
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Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.
Note:
IRM 4.10.12.1.3.3 , Campus FRP Coordinators, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within two (2) business days. If a determination is not made within the allowed timeframe, the Examination examiner will edit Action Code 440 (OSPC) or 331 (CSPC) in the lower left margin of Form 1065 preceded by the letters "AC" .
Examination has selected the return as frivolous, e.g. indicated by an Action Code 440 (OSPC) or 331 (CSPC), and a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing" , but sends the return for processing Continue processing the return using procedures in IRM 3.11.15 . However, do not circle or void the Action Code indicating a frivolous return. Note:
Returns having only zeros, no entries, are blank or indicate "None" , "Not Liable" , etc. with no evidence of a frivolous argument are not to be considered as frivolous returns.
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All attachments to the document being processed will be examined and action taken as required by the attachment.
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When an attachment has an effect on the document being processed, it will remain attached unless a specific instruction requires that it be detached.
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Notate any action taken on Form 1065 regarding attachments, photocopying, etc. (to leave an action/working trail).
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Refer to the Campus Mail Routing Guide for proper disposition of attachments not found in these instructions.
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If the document to be detached contains any information that is pertinent to the return being processed, photocopy or transfer the data to a blank piece of paper and attach it to the return.
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Forward any attachment requesting an adjustment or correspondence to Accounts Maintenance Branch via Form 4227.
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Ensure the attachment contains the partnership's name, address, EIN and received date.
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All attachments to the return must be reviewed before the return can be considered processable.
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Attachments should only be detached when specifically instructed.
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Edit Action Trail(s) (e.g., "2848 DETACHED" ) in the lower left corner going vertically up the side of the return.
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Follow the general guidelines below written for each attachment:
DOCUMENT DETACH ACTION CP 259, 515–518 NO Route notice and return to Collections. Exception:
Do not route to Collections if "599" is notated.
Includes tax liability for Multiple Tax Periods or Types of Tax NO -
Numbered returns route to Rejects.
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Unnumbered returns, prepare a dummy return if possible: otherwise correspond.
Other Tax Returns (original signature) YES -
Edit received date to the detached return.
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Route to appropriate function unless specifically directed otherwise.
Exception:
Returns attached to a consolidated return will NOT be detached.
State Tax Returns, original or copy, with an original signature YES Route to Receipt and Control. State Tax Returns (Photocopy, facsimile or no signature) NO Leave attached. Statement establishing Reasonable Cause for delinquent filing NO -
Issue Letter 1382C.
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Continue editing the return.
Remittance found NO Immediately hand carry return and remittance to supervisor. Request for information or inquiries YES -
Photocopy any data necessary to process the return.
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Attach the photocopy to the return.
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Route original attachment to the proper office for necessary action.
Request for Adjustment to another document YES Route to appropriate function. Attachment must contain Name, Address, EIN and Received Date. Enter if missing. Request for money transfer YES Partnership notates transfer of money to the return you are working: -
Prepare Form 3465 to route the request to Rejects Unit.
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Hold the return for 2 cycles before processing.
Partnership notates transfer of money from the return you are working:-
Prepare Form 3465 to route the request to Rejects Unit.
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Continue editing the return.
Request for Form 8109, Deposit Slips or Coupon Books YES Complete Form 4417A and route to Entity. Request for Forms or Schedules NO If requesting current year forms: -
Prepare Form 4190.
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Forward to National Distribution Center (NDC) for processing.
If requesting prior year forms:-
Prepare Form 6112.
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Forward to National Distribution Center for processing.
Note:
Forms 4190 and 6112 are generally used for IMF requests. Therefore, enter all BMF requests for forms and/or schedules in the "WRITE-IN" portions of the forms.
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The table below contains routing instructions for specific forms and/or documents attached to Form 1065 or 1065-B.
FORM/DOCUMENT DETACH ACTION 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 Form SS-4)NO Route Form 1065 and Form SS-4 to Entity Control for EIN assignment. Form T, Forest Activities Schedules NO No Action W-2, Wage and Tax Statement YES Route to Receipt & Control W-2G Certain Gambling Winnings NO No Action Form 1042, Annual Withholding Tax Return for U.S. Sourced Income of Foreign Persons NO Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ . Forms 1099 YES Route to Receipt & Control Form 1128, Application to Adopt, Change or Retain a Tax Year YES If Rev. Proc. 2006-46 is claimed, check the received date on Form 1065 and edit the date on Form 1128.
1) Timely Filed Return:-
Attach Form 4227 with the notation "REVIEW FOR APPROVAL " , and
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Edit bottom left corner of Form 1065 , "FORM 1128 DETACHED" , and
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Route to Entity Control.
2) Untimely Filed Return:-
Attach Form 4227 with the notation "REVIEW FOR DISAPPROVAL, NOT TIMELY FILED" ,
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Edit bottom left corner of Form 1065, "FORM 1128 DETACHED" , and
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Route to Entity Control
Form 2848, Power of Attorney and Declaration of Representative (POA) YES -
Edit partnership name and EIN on Form 2848 if missing.
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Edit received date on Form 2848.
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Route Form 2848 to CAF (Centralized Authorization File) function.
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Edit action trail on tax return.
Form 3115, Application for Change in Accounting Method NO Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.11.15.16.1. Form 3468, Computation of Investment Credit NO Edit Historic Structure Code "3" in the left margin next to Line 9 of Form 1065 if tax period is 8312 or later ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ and the conditions in See IRM 3.11.15.16.5. are met. Form 3520-A, Annual Return of Foreign Trust With U.S. Beneficiaries YES -
Forward to OSPC via Form 4227
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Issue Letter 86C and notate on Form 1065 .
Form 4571, Explanation for Filing Return Late or Paying Tax Late NO This form is obsolete as of 1/20/2004. Form 4797, Sale of Business Property NO See IRM 3.11.15.18.7. and See IRM 3.11.15.47.10. Form 4835, Farm Rental Income and Expenses NO -
Edit the salary and wage code, (entry on Line 20) to the right of Line 9 on Form 1065, and/or the EPMF code, (entry on Line 21) to the right of Line 18 on Form 1065.
Form 5471, Information Return of U.S. Persons with Respect to a Foreign Corporation NO Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 5472, Information Return of a Foreign Owned Corporation NO Edit Audit Code "" in the left margin next to Line 9 ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ Form 5713, International Boycott Report YES
(If Original)1. Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ when both questions in 7(f) are answered "YES" .
2. Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ if either one or both questions in 7(f) are not answered "YES" .
3. Detach and forward to OSPC SOI (Statistics of Income) at mailstop (MS) 6112.Form 5713, International Boycott Report
NO
(If Copy)1. Edit Audit Code "≡ ≡ ≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ when both questions in 7(f) are answered "YES" .
2. Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ if either one or both questions in 7(f) are not answered "YES" .Form 5884-A, Credits for Affected Midwestern Disaster Area Employers NO No Action Form 6252, Computation of Installment sale Income NO See IRM 3.11.15.16.3. Form 6765, Credit for Increasing Research Activities NO No Action Form 6781, Gains and Losses From Section 1256 Contracts and Straddles NO Edit Computer Condition Code "≡ ≡ " ≡ ≡ ≡ ≡ ≡ . Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns
(request is for a tax period or tax return other than the one being edited)YES -
Edit received date
-
Forward to Receipt & Control for processing.
Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns
(request is for the tax period and tax return being edited)NO No Action Form 8082, Notices of Inconsistent Treatment or Administrative Adjustment Request (AAR) NO Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ Form 8271, Investor Reporting of Tax Shelter Registration Number NO Edit Computer Condition Code "" . Note:
Valid for tax periods 200711 and prior only.
Form 8275, Disclosure Statement NO Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ Form 8275-R, Regulation Disclosure Statement NO Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8283, Non-Cash Charitable Contributions NO Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ when the following conditions exist: -
1993 and subsequent return, page 2, Part 1, Question 4, "Art Contributions of $20,000 or more" , is checked.
-
1993 and subsequent return, page 2, Part 1, Question 5, a-d, column (c) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Form 8308, Report on the Sale or Exchange of Certain Partnership Interest NO No Action Form 8453-B, U.S. Electing Large Partnership Declaration for an IRS e-file Return Yes (If signature present) Transship form to OSPC Electronic Filing Unit:
Ogden IRS Campus
ELF Processing Support Section
OSC M/S 6052
1160 W 12 Street
Ogden, UT 84201Form 8453-P, U.S. Partnership Declaration and Signature for Electronic Filing YES (If signature present) Transship form to OSPC Electronic Filing Unit.
Ogden IRS Campus
ELF Processing Support Section
OSC M/S 6052
1160 W 12 Street
Ogden, UT 84201Note:
For Tax Periods 200711 and prior.
Form 8453-PE, U.S. Partnership Declaration for an IRS e-fie Return YES (If signature present) Transship form to OSPC Electronic Filing Unit.
Ogden IRS Campus
ELF Processing Support Section
OSC M/S 6052
1160 W 12 Street
Ogden, UT 84201Form 8586, Low-Income Housing Credit NO See IRM 3.11.15.22.12. Form 8594, Asset Acquisition Statement No Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ if the conditions in See IRM 3.11.15.16.1. are met. Form 8609, Low-Income Housing Credit Allocation Certification NO If not present, correspond for Form 8586, Low-Income Housing Credit. See IRM 3.11.15.22.12. Form 8611, Recapture of Low-Income Housing Credit NO No Action Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund NO 1. Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ if Part IV, Lines 10a - 11f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ if Part IV, Lines 10a-11f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Form 8693, Low-Income Housing Credit Disposition Bond NO No Action Form 8697, Interest Computation Under the Look-Back Method for Completing Long-Term Contracts
(refund)YES Detach and forward to Accounts Management (AM). Form 8697, Interest Computation Under the Look-Back Method for Completing Long-Term Contracts
(other Form 8697)NO No Action Form 8716, Election to Have a Tax Year That is Not a Required Tax Year
(original Form 8716)YES Detach and forward to Entity using Form 4227. Form 8716, Election to Have a Tax Year That is Not a Required Tax Year
(copy of Form 8716)NO No Action Form 8752, Required Payment of Refund Under Section 7519 YES -
Make sure the Partnership's name, received date, tax period and EIN are included on the form.
-
If any of these items are missing, edit the information from the 1065 return to the appropriate areas of the Form 8752.
-
Route to Receipt & Control Unit.
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) YES 1. Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡
2. Forward to OSPC.Caution:
Do not detach and forward if the form is clearly identified as a "copy" .
Form 8805, Foreign Partners Information Statement of Section 1446 Withholding Tax YES, if Form 8804 attached. Otherwise, NO 1. Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡
2. Forward to OSPC.Caution:
Do not detach and forward if the form is clearly identified as a "copy" .
Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) NO Edit Audit Code "≡ ≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ Form 8821, Tax Information Authority (TIA) YES -
Edit partnership name and EIN on Form 8821.
-
Edit received date on Form 8821.
-
Route Form 8821 to CAF function.
-
Edit action trail on tax return.
Form 8822, Change of Address
(Attached to Form 1065 and address is the same)NO No Action Form 8822, Change of Address
(Attached to Form 1065 and address is different)YES Forward to Entity Control using local procedures for expedited processing. ( See IRM 3.11.15.8.4(3).) Form 8822, Change of Address
(Not attached to Form 1065)Batch daily and forward to Entity Control using local procedures for expedited processing. Form 8824, Like Kind Exchanges NO Edit Computer Condition Code "1" . See IRM 3.11.15.22.8. Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation NO See IRM 3.11.15.22.1. and See IRM 3.11.15.28. Form 8832, Entity Classification Election YES
(If more than one form is attached)
(Do not detach if only one form is attached)-
Route to Entity Control using Form 4227.
-
Edit "8832 DETACHED" as an action trail in the left margin of Form 1065.
-
Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ if box 6(d), (e) or (f) is checked.
Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) NO 1. Edit Computer Condition Code "≡ "
2. Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities NO Edit Audit Code "≡ ≡ " in the left margin next to Line 9 ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ Form 8865, Information Return of U.S. Persons With Respect to Certain Foreign Partnerships NO Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method (refund) YES If Form 8866 indicates a refund, detach and forward to Accounts Management. Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method
(other Forms 8866)NO No Action Form 8873, Extraterritorial Income Exclusion NO No Action Form 8879-B, IRS e-file Signature Authorization for Form 1065-B NO No Action Form 8879-PE, IRS e-file Signature Authorization for Form 1065 NO No Action Form 8883, Asset Allocation Statement Under Section 338 NO Edit Audit Code "≡ " in the left margin next to Line 9 ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ if the conditions in See IRM 3.11.15.16.1. are met. Form 8886, Reportable Transaction Disclosure Statement NO Edit Audit Code "≡ ≡ ≡ " in the left margin next to Line 9 ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ Form 8893, Election of Partnership Level Tax Treatment NO See IRM 3.11.15.21.7. Form 8894, Request to Revoke Partnership Level Tax Treatment Election YES Forward to:
OIRSC
TEFRA M/S 4510Form 8902, Alternative Tax on Qualifying Shipping Activities NO No Action Form 8913, Credit for Federal Telephone Excise Tax Paid NO ( See IRM 3.11.15.19.15. and See IRM 3.11.15.49.2.) Note:
For tax periods 200612 through 200711 only.
Schedule D, Capital Gains and Losses NO See IRM 3.11.15.22.8. Schedule E, Supplemental Income and Loss NO Schedule E should not be filed with Form 1065. If attached, See IRM 3.11.15.22.1. Schedule F, Profit or Loss From Farming NO See IRM 3.11.15.27. Schedule M-3, Net Income (Loss) Reconciliation for Certain Partnerships NO All returns with a Schedule M-3 attached must be transshipped to Ogden for processing. -
Edit Computer Condition Code "≡ " . See IRM 3.11.15.14.2#.
-
Edit Audit Code "≡ ≡ ≡ " in the left margin next to Line 9 ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ .
-
-
The following instructions reference special procedures.
-
Any return with a received date that is 2 years and 9 months or more after the Return Due Date is a potential statute control return.
-
Statute returns must be routed to the Statute Control Unit daily or more often if needed.
Exception:
Do not route the return to the Statute Control Unit for clearance if any of the following conditions are present. Edit a CCC "W" if the return is a true statute return and continue editing:
• Compliance (IRC Section 6020(b)) returns.
• A return with TC 59X or ICS notated on the face of the return.
• Returns that are substitute returns prepared by Examination (SFR) in top margin of Form 1065.
• The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days. -
Statute returns are unprocessable until they are cleared by Statute Control:
If... Then... The return is numbered -
Edit Action Code 310 on the return.
-
Leave the return in the batch and continue processing.
The return is unnumbered -
Do not continue processing.
-
Pull the return from the batch.
-
Attach Form 4227 and route to Statute Control Unit. ( See Figure 3.11.15-3.)
-
-
Edit CCC "W" if the return has been cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return. ( See Figure 3.11.15-4.)
-
IRC 6229 established a three year statute of limitation on partnerships covered under the Tax Equity Fiscal Responsibility Act (TEFRA).
Figure 3.11.15-3Figure 3.11.15-4
-
A joint venture or other contractual arrangement might create a separate entity for federal tax purposes if the participants carry on a trade, business, financial operation, or venture and divide the profits therefrom. For example:
-
A separate entity exists if co-owners of an apartment building lease space and in addition provide services to the occupants either directly or through an agent.
-
A joint undertaking merely to share expenses does not create a separate entity. If two or more persons jointly construct a ditch merely to drain surface water from their properties, they have not created a separate entity.
-
Mere co-ownership of property that is maintained, kept in repair, and rented or leased does not constitute a separate entity. If an individual owner or tenants in common of farm property, lease it to a farmer for cash rental or a share of the crops, they do not necessarily create a separate entity.
-
-
A noncorporate entity with at least two members may be classified as a partnership or an association taxable as a corporation. Even if classified as a partnership, certain eligible entities may elect not to be taxed as a partnership, but instead have the members compute their income without computing partnership taxable income.
-
IRC 761(a) permits an eligible unincorporated organization to elect to be wholly excluded from the partnership provisions of IRC 701 through IRC 707, or subchapter K. Form 1065 need be filed only for the year of the election, and a statement of the election should be attached to the return.
-
IRC Section 761(f) provides that a qualified joint venture conducted by a husband and wife who file a joint return shall not be treated as a partnership for federal tax purposes. A qualified joint venture is any joint venture involving the conduct of a trade or business if the only members of such joint venture are a husband and wife, both spouses materially participate in such trade or business, and both spouse elect to be a qualified joint venture.
-
See IRM 3.11.15.5.5.2 for editing procedures.
-
Compliance functions (Collections and Examination) secure returns from the taxpayer and also prepare returns if the taxpayer does not provide them.
-
Prepared tax returns are notated with IRC Section "6020(b) " or "SFR" (Substitute for return).
-
Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collection System) or notated "Process as Original" with Form 13133, Expedite Processing Request, attached. The "Delinquent Return" box on Form 13133 should be checked.
-
-
When the taxpayer fails to file a required return, IRC Section 6020(b) is the authority for the IRS to prepare the return.
-
These returns are identified by the notation: "PREPARED AND SIGNED UNDER THE AUTHORITY OF IRC SECTION 6020(b) OF THE INTERNAL REVENUE CODE" which is located in the center bottom of Page 1 of the return.
-
Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.
-
Returns must be signed by Compliance Function representative. If not signed, route to Compliance using Form 4227.
-
Edit CCC "4" ( See IRM 3.11.15.14.16.) and ( See Figure # 3.11.15-5 #.)
Note:
CCC "R" cannot be used with CCC "4" .
-
Edit CCC "≡ ≡ ≡ " if the Compliance Function representative notates: "DO NOT ASSESS FAILURE TO PAY PENALTY" .
-
Do Not correspond with the taxpayer for unprocessable conditions.
-
Edit CCC "W" if the Received Date is more than 2 years 9 months after the Return Due Date. Do Not send the return to Statute Control. ( See IRM 3.11.15.14.11.) and ( See Figure # 3.11.15-5 #.)
-
Number of partners, Line I, must be 2 through 999,999.
If... Then... Number of partners is blank Edit "6" as the number of partners.( See IRM 3.11.15.15.) Number of partners is greater than 100 Edit CCC"≡ " . ( See Figure # 3.11.15-5 #.)
Figure 3.11.15-5
Please click here for the text description of the image.This image has been removed because it contains Official Use Only.
-
-
These returns are identified by the notations: "TC 59X" or "ICS" .
-
Do Not edit CCC "G" on these returns.
-
Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.).
-
Edit CCC "W" if the Received Date is more than 2 years 9 months after the Return Due Date. Do Not send the return to Statute Control. ( See IRM 3.11.15.14.11.)
-
Number of partners, Line I, must be 2 through 999,999.
If... Then... Number of partners is blank See IRM 3.11.15.15. Number of partners is greater than 100 Edit CCC"≡ ≡ ≡ " . -
See Figure 3.11.15-6.
Figure 3.11.15-6
-
-
These returns are identified by the notation: "SFR" or "SUBSTITUTE RETURN" on Page 1.
-
Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.
-
Do Not send back or correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, use "No Reply" procedures.
-
If Form 13133 is attached, edit the computer condition codes that are checked on the form.
Note:
CCC "R" cannot be used with a CCC "4" .
-
Edit CCC "W" if the Received Date is more than 2 years 9 months after the return due date. Do Not send the return to Statute Control. ( See IRM 3.11.15.14.11.)
-
Number of partners, Line I, must be 2 through 999,999.
If... Then... Number of partners is blank Edit "2" as the number of partners. Number of partners is greater than 100 Edit CCC"≡ ≡ " ( See IRM 3.11.15.14.18.).
-
-
These returns are identified by the notation "Process as Original" on page 1 of the return and a Form 13133 attached with the "Delinquent Return" box checked.
-
Do Not edit CCC "G" on these returns.
-
Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.).
-
On the attached Form 13133, review the BMF CCC boxes to determine which computer condition codes must be edited on the return.
Note:
CCC "X" (Hold Credits on Module) is not valid for Form 1065.
-
Edit CCC "W" if the received date is more than 2 years 9 months after the Return Due Date. Do Not send to Statute Control function. ( See IRM 3.11.15.14.11.)
-
Number of partners, Line I, must be 2 through 999,999.
If... Then... Number of partners is blank See IRM 3.11.15.15. Number of partners is greater than 100 Edit CCC "≡ ≡ ≡ " ( See IRM 3.11.15.14.18.) -
-
A return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module.
-
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. Do not correspond for missing signatures on these documents.
-
Each re-entry return must have a Form 3893, Re-Entry Document Control or Form 13596, Reprocessing Returns, attached.
-
Form 3893 is used to reinput documents that have not posted to an account or module
-
Form 13596 is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module
-
-
Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.
-
Examine Form 3893 and/or Form 13596 to determine the action needed to make the return processable. If Form 3893 or Form 12596 is missing, do the following:
-
Edit Action Code 640.
-
Route to Receipt & Control using Form 4227.
-
Leave the return in the batch.
Caution:
If the received date is 2 years and 9 months or more after the return due date, refer to statute procedures before re-entering or reprocessing the return. ( See IRM 3.11.15.5.1).
-
-
If Schedules K-1 are attached to a Reprocessable/Re-Entry current year parent return that has not been processed, detach Schedules K-1 and process as "Loose Schedules K-1" using IRM 3.0.101
-
Form 3893, Re-Entry Document Control, is used to reinput a return that has not posted to an account or module.
-
If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.
-
Circle the CCC "G" if present.
-
Do not edit CCC "G" on amended returns.
-
Do not send Letter 1382C if a request for reasonable cause is attached.
-
If the return was not edited according to current processing instruction, circle out any action codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.
-
If the return was edited according to current processing instruction, ensure that the information from Form 3893 is edited on the return.
Form 3893 Action Taken Box 14 (Remarks ) Ensure that the information is edited to the return. Box 15 (Process as) -
Circle out the green rocker and edit marks that may indicate a receipt of remittance.
-
Do not change any tax due amounts.
-
-
Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.
If... Then... Improper perfection Edit the same correction in red to the appropriate area. Taxpayer error Leave the entries as shown on the document. -
A received date must be present on all reinput returns:
If... Then... Received date is not present Edit a received date to the middle of the return. Multiple received dates are present Circle out all but the earliest date. -
When additional information is still needed to make the return processable, prepare Form 3696 (or other approved Correspondence Action Sheet) or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).
Exception:
Do Not correspond for missing Schedules K-1. ( See IRM 3.11.15.15.).
-
When perfection is not possible, edit Action Code 640 on the return and attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.
-
Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.
-
Circle CCC "G" if present.
-
Do not edit CCC "G" on amended returns.
-
Do not send Letter 1382C if a request for reasonable cause is attached.
-
If the return was not edited according to current processing instruction, circle out any action codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.
-
If the return was edited according to current processing instruction, ensure that the information from Form 13596 is edited on the return.
Form 13596 Action Taken TIN correction Edit correct TIN on return Tax period correction Edit correct tax period ended on return Reasonable cause Edit appropriate computer condition code: -
≡ ≡ ≡ ≡ ≡ "" ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
≡ ≡ ≡ ≡ "" ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
-
Examine returns that have any color other than green editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.
If... Then... Improper perfection Edit the same correction in red to the appropriate area. Taxpayer error Leave the entries as shown on the document. -
A received date must be present on all reprocessed returns:
If... Then... Received date is not present Edit a received date to the middle of the return Multiple received dates are present Circle out all but the earliest date -
Circle any green rocker and edit marks that may indicate a receipt of remittance.
-
This section provides instructions for editing short record returns.
-
Short record returns must be edited correctly to prevent erroneous assessment of any penalties.
-
An Amended return may be identified by checking the " Amended" box and/or by such words as "SUPPLEMENTAL" , "DUPLICATE" , "ADDITIONAL" or any other positive indication that the taxpayer has filed previously. Filing a "Copy" of a return is not sufficient reason to label a return "Amended" unless accompanied by a positive statement from the taxpayer.
-
Examine the return for attachments. Do not separate any related attachments from the return that the taxpayer has submitted to explain the reason for the Amended return, this information will be used by Accounts Management. Detach any unrelated documents and route them to the appropriate function using Form 4227. Edit Action Trail on the return.
-
There is an indication the return is amended and:
If... Then... TC 59X or ICS was entered on the return by Compliance Services, Do not edit CCC "G" . Process the return as an original. The return is stamped Delinquent Original Cleared for Processing by Statute Do not edit CCC "G" . Process the return as an original. Form 13596 is attached Do not edit CCC "G" . ( See IRM 3.11.15.5.4.2.) None of the above is present, Edit CCC "G" ( ) . No other codes may be used with a CCC "G" except "≡ ≡ ≡ " ≡ ≡ "" ≡ ≡ ≡ ≡ ERS (Error Resolution System) Action Codes. -
The following data must be edited on all amended returns:
-
Name control (unless Check Digits are present) ( See IRM 3.11.15.9.2.)
-
EIN ( See IRM 3.11.15.9.1. )
-
Tax period ( See IRM 3.11.15.8.)
-
CCC "G" ( See IRM 3.11.15.14.4.)
-
Received date ( See IRM 3.11.15.6.)
-
Signature ( See IRM 3.11.15.7.)
-
-
Detach Schedules K-1 for current year only through November 30th.
-
Identify a return as a potential Section 761(a) election if any of the following conditions are present:
-
Contains the name or other identification and the address of the organization (but no tax data entries); the names, addresses, and identification numbers of all the organization's members; and a statement that the organization qualifies, and the members elect, to be excluded from subchapter K (if the return shows any tax data relating to an entity level computation of income, it cannot be treated as a Section 761(a) election);
-
IRC 761(a) or Treas. Reg. 1.761-2 notated;
-
Rev. Proc. 2002-68 (for tax years beginning before 01/01/2004);
-
Rev. Proc. 2003-84 (for tax years beginning after 01/01/2004);
-
Refers to Publication 541 (Partnerships) or Publication 550 (Investment Income and Expenses);
-
Contains a statement referring to the joint purchase, retention, sale, or exchange of investment property; or
-
Contains a statement referring to the joint production, extraction, or use of property.
-
-
When a return is identified as a potential 761(a) election, suspend the editing of the return and hold for periodic review by Examination Classification. The frequency of the review will be determined by campus management.
-
Examination will determine if the election is accepted, rejected, or selected for examination. After Examination has made its determination, process each group of returns as directed.
If... Then... Election is "ACCEPTED" by Examination Edit as a short record (SR).( See IRM 3.11.15.5.5.2(4)) Examination determines the return is "SELECTED FOR EXAMINATION" -
"X" out all money amounts.
-
Edit Audit Code "" .
-
Continue editing the return. ( See IRM 3.11.15.5.5.2(4).
Correspondence is required Issue Letter 1355C requesting information as directed by the Examination representative. Response to Letter 1355C is received Contact Examination for review. Examination determines the response is acceptable Edit return as a short record. ( See IRM 3.11.15.5.5.2(4)) Examination determines that the response is not satisfactory and does not request additional information 1. Reject 761(a) election.
2. Edit as a Form 1065 long record.Note:
Phone inquiries regarding technical questions should be directed to the Examination representative.
-
-
For "accepted" and "selected" Section 761(a) elections , edit when required:
-
Name control ( See IRM 3.11.15.9.2.)
-
EIN ( See IRM 3.11.15.9.1. )
-
Tax period ( See IRM 3.11.15.8.)
-
Number of partners ( See IRM 3.11.15.15.)
-
Received date ( See IRM 3.11.15.6.)
-
Address change, if present
-
-
Edit "761(a)" in the upper left hand corner of Form 1065.
-
Edit "SR" in the top margin between the form number and form title.
-
Edit Computer Condition Code "8" . ( See IRM 3.11.15.14.19.)
-
≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ( See Figure # 3.11.15-7 #.)
-
For elections "selected" by Examination, edit Audit Code "≡ ≡ ≡ " on the return.
Figure 3.11.15-7
Please click here for the text description of the image.This image has been removed because it contains Official Use Only.
-
When reviewing Forms 1065, identify IRC 6032, common trust fund filers, by the following entries:
-
Form 1065, Box A, Principal Business Activity – Partnership enters, "COMMON TRUST FUND" or "COMMON TRUST" or NAICS (North American Industry Classification System) Code 525920; and/or
-
Markings within margins of Forms 1065 indicate "IRC 6032 COMMON TRUST FUND" or similar notations.
-
-
For common trusts, edit when required:
-
Name control ( See IRM 3.11.15.9.2.)
-
EIN ( See IRM 3.11.15.9.1. )
-
Tax period ( See IRM 3.11.15.8.)
-
Received date ( See IRM 3.11.15.6.)
-
Number of partners ( See IRM 3.11.15.15.)
-
Computer condition code
-
Address change, if present
-
-
Edit "SR" in the top margin between the form number and form title. ( See Figure # 3.11.15-8 #.)
-
Edit Computer Condition Code "5" . ( See IRM 3.11.15.14.17.)
-
If the partnership submits a Common Trust return on a non-standard form (Common Trust Fund Return of Income, letter with Investment Trust Company letterhead, etc.) prepare a dummy Form 1065 with the following information:
-
Name and address ( See IRM 3.11.15.9.)
Note:
If the name and/or address cannot be determined, perform IDRS research using the EIN provided on the return/letter.
-
EIN ( See IRM 3.11.15.9.1. )
-
Tax period ( See IRM 3.11.15.8.)
-
Received date ( See IRM 3.11.15.6.)
-
Computer condition code
-
Number of partners ( See IRM 3.11.15.15.)
-
-
If a Form 1065 or letter is identified as a common trust fund, take the following actions to prevent the assessment of penalties:
-
Check the return received date. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ penalty; and
-
Process as a short record return. If information or attachments are missing, DO NOT correspond.
Figure 3.11.15-8
Please click here for the text description of the image.This image has been removed because it contains Official Use Only.
-
-
Partnerships which are formed solely for the purpose of acting as a nominee or agent are not required to file a partnership return. They are required to file Form 1099 showing the actual owner of the income.
-
Although they are not required to do so, some of these partnerships may file Form 1065 solely for the purpose of telling IRS that they are not required to file.
-
These returns will usually contain only partnership entity information with a statement that the partnership is a nominee , the partnership is not required to file.
-
Process the nominee returns as final, short record returns.
-
Edit a timely received date (April 15th or due date of the return), regardless of when they are filed.
-
Edit the following:
-
Name control ( See IRM 3.11.15.9.2.)
-
EIN ( See IRM 3.11.15.9.1. )
-
Tax period ( See IRM 3.11.15.8.)
-
Number of partners ( See IRM 3.11.15.15.)
-
Computer condition code
Note:
CCC "F" must always be edited.
( See IRM 3.11.15.14.3.)
-
-
Edit "SR" in the top margin between the form number and form title.
-
For inactive returns with no income or deduction on Page 1 and no dollar entries to be transcribed on Schedule A of Page 2, on Pages 3, 4 and 5 of Form 1065 on Line 17 of Form 8825, and on Line 11 of Schedule F, edit the following items when they are required:
-
Name control ( See IRM 3.11.15.9.2.)
-
EIN ( See IRM 3.11.15.9.1. )
-
Tax period ( See IRM 3.11.15.8.)
-
Received date ( See IRM 3.11.15.6.)
-
Number of partners (edit number of Schedules K-1 attached or "2" if none or "1" ) ( See IRM 3.11.15.15.)
Exception:
If number of partners is "none" or "1" and the partnership entity indicates LP, LLP, LLC, LLLT or UBO See IRM 3.11.15.15..
-
Computer condition codes
-
Address change, if present
Note:
A return with an entry in Box "F" on Page 1 or a "YES" answer to Question 7, Schedule B may be inactive if it meets all conditions in (1) above.
-
-
Edit "SR" in the top margin between the form number and form title.
Exception:
Do not edit as a short record if an audit code ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or nonrecourse loan is present. Edit as a long record.
-
Edit Computer Condition Code "R" if the return is not received timely. ( See IRM 3.11.15.6 for determining the Received Date.
-
A received date is required on all Forms 1065.
If... Then... The return is received≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . ( See Exhibit 3.11.15-9.) The return is considered timely 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 legal holiday. The IRS received date stamp≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the postmark or shipment date is on or before the due date Edit the received date to agree with the postmark date. -
The received date may or may not be stamped on the face of the return.
-
If the received date stamp is not present or the date is illegible or invalid, edit the Received Date in MMDDYY format in the middle of page 1 of the return. Edit the Received Date according to the following priority:
-
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 Postmark (USPS) or foreign postmark date are as follows:
If... Then... An envelope is not attached to the return Use the postmark date stamped on the face of the return. An envelope has a USPS and private metered postmark Always use the USPS or foreign 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 postmark. An envelope has only one private metered postmark Use the private metered postmark. Note:
A private metered postmark is to be considered timely if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
-
Revenue Officer's Signature date.
-
Signature date. (Only if within current year)
-
Julian control date minus 10 days.
-
Current date minus 10 days.
-
-
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 stamped on the return -
Use the earliest IRS stamped received date. ( See Figure 3.11.15-9.)
-
Circle out all other dates.
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 a State agency Use the IRS date stamp as the received date. Reminder:
If an envelope is attached to the return, check the envelope for remittance. If found, handcarry remittance to manager.
-
-
Form 1065 return is delinquent and the partnership explains that the return is late due to the rejection of a timely filed electronic return, edit as follows:
If... And... Then... The postmark is within 10 calendar days of notification from the service that the electronic return has been rejected or cannot be accepted for processing A copy of the rejection notification is attached Edit CCC"≡ " . The postmark is within 10 calendar days of notification from the service that the electronic return has been rejected or cannot be accepted for processing A copy of the rejection notification is attached and the number of partners is greater than 100 -
Edit CCC "≡ " .
-
Fax a copy of Form 1065, Page 1 and copy of ELF rejection notification to Ogden IRS Campus E-File Team 203 at 801–620–7622.
-
Indicate on the fax "REJECTION NOTIFICATION FROM ELF"
The postmark is within 10 calendar days of notification from the service that the electronic return has been rejected or cannot be accepted for processing A copy of the rejection notification is not attached No action. The postmark is not within 10 calendar days of notification from the service that the electronic return has been rejected or cannot be accepted for processing A copy of the rejection notification is attached No action.
Figure 3.11.15-9 -
-
A signature (general partner's or Limited Liability Company Member's signature) and jurat is required for all returns except the following:
Note:
If a signature does not appear on the designated line for the taxpayer's signature, follow the procedures in the If/Then table below.
-
Returns prepared under IRC Section 6020(b). These returns must be signed by a Compliance Function representatives. ( See IRM 3.11.15.5.3.1)
-
Returns prepared by Examination, for example SFR (Substitute for Return). ( See IRM 3.11.15.5.3.3 ).
-
Dummy returns prepared by IRS.
-
Returns filed under IRC 501(d) (Religious or Apostolic Organization).
-
Correspondence is attached showing that the taxpayer is responding to an IRS letter or notice (CP). ( See IRM 3.11.15.7(5).)
-
"CIS" returns that has Form 13596 attached. ( See IRM 3.11.15.3.1.1)
-
Returns filed as Common Trust. ( See IRM 3.11.15.5.5.3)
-
Returns filed under Section 761(a). ( See IRM 3.11.15.5.5.2)
-
Returns filed as Nominee Returns. ( See IRM 3.11.15.5.5.4)
-
Inactive Short Record Return (this does not include amended returns). ( See IRM 3.11.15.5.5.5)
-
Re-entry returns originally filed electronically (E-File). These returns may be identified by the presence of Mod E-file printouts in lieu of an actual return.
-
Returns filed by an LP, LLC, LLP, LLLT or UBO claiming only one partner. ( See IRM 3.11.15.15 )
-
-
Do not correspond for a signature on "CIS" returns that have Form 13596 attached. See IRM 3.11.15.3.1.1, Correspondence Imaging System (CIS) Returns, for processing instructions.
-
If a signature is missing, correspond when:
-
The return is not signed on the line designated for the partner's signature, or
-
The jurat is not present on the line designated for the partner's signature (non-standard return).
If... Then... Balance due, numbered returns, "Secured" or Delinquent -
Correspond using approved Correspondence Action Sheet.
-
Edit Action Code "225" or "226" if corresponding for signature only.
-
Leave in batch and continue editing.
Only the Entity information is present and there are no attachments containing tax data, -
Correspond using approved Correspondence Action Sheet.
-
Action Code 225 (Correspondence for Signature only) or 226 (International Correspondence for Signature only).
-
Leave in batch and continue editing.
-
-
If the jurat is altered or stricken (crossed-out), See IRM 3.11.15.3.3 for frivolous return instructions.
-
Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the return.
-
If the "signature declaration" is altered or stricken (crossed-out), See IRM 3.11.15.3.3 for frivolous return instructions.
-
If the partnership responds with a self-prepared "signature declaration" it must contain the same language as the jurat on the tax 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."
-
-
Since tax examiners are not expected to be handwriting experts, Section 301.6064-1 of Regulations allows the Service 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:
A check mark or "X" used to designate where the partner should sign the return is not considered a valid signature.
-
If the general partner's or Limited Liability Company Member's signature is on the preparer's line, verify the partner's name with the Schedules K-1 and arrow the signature up to the general partner's or Limited Liability Company Member's signature line.
-
The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the partnership has elected to allow the Paid Preparer to answer questions about the return as it is processed.
-
No action is required on amended returns.
-
Take the following actions when an entry is present in the Paid Preparer Checkbox:
If... Then... Only the "YES " box is checked Take no action. The "NO" box is checked;
neither box is checked; or,
both boxes are checkedCircle the Paid Preparer's Telephone Number, if present. ( See Figure 3.11.15-10.)
Figure 3.11.15-10
-
The Paid Preparer section is located below the Signature area at the bottom of Form 1065.
-
The Preparer's Social Security Number (SSN) or Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom-right corner of Form 1065 (Page 1).
-
No action is required on amended returns.
-
The Preparer's SSN must be a nine-digit number. The SSN cannot be all zeroes or all nines.
-
A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's Social Security Number area at the bottom of Form 1065. The PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).
-
Circle-out the Preparer's SSN or PTIN if it is invalid
-
The Preparer's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Forms 1065 (Page 1).
-
No action is required on amended returns.
-
The Preparer's EIN must be a nine-digit numeric number. The EIN cannot be all zeroes or all nines.
-
Circle-out the Preparer's EIN if it is invalid.
-
The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right corner of Form 1065 .
-
No action is required on amended returns.
-
If a complete Paid Preparer Telephone Number is located on the Paid Preparer's Phone Number line, no editing of this line is necessary.
-
If the return is for a tax period prior to 2001, circle the telephone number.
-
If the Paid Preparer's Phone Number is incomplete, illegible or less than 10-digits, quickly review the return and all attachments.
Note:
If more than 10 digits are present, continue processing the return. ISRP will input the first 10 digits only.
Figure 3.11.15-11If... Then... A complete Paid Preparer Phone Number is located elsewhere on the return or attachments Edit to the " Phone No." line. ( See Figure 3.11.15-11.) A complete Paid Preparer Phone Number is not located or the number is illegible Circle the incomplete or illegible telephone number. ( See Figure 3.11.15-11.) 
-
All returns must have a Tax Period.
-
Edit the Tax Period to the right of the form title in YYMM format.
Exception:
Do not edit the Tax Period unless the Tax Period ending is other than the current processing year (i.e., 200912).
If... Then... The return is for the current processing year No editing is necessary. The return is for a prior year Edit the Tax Period in YYMM format. The partnership has notated a Tax Period other than the preprinted year on the return Edit the Tax Period in YYMM format based on the partnership's indication. ( See Figure 3.11.15-12.) The Tax Period is missing, incomplete or illegible -
Review the return or attachments for the correct period.
-
If found, edit the Tax Period to the right of the form title in YYMM format.
-
If unable to determine the Tax Period after researching, process the return for the year currently being processed.
-
-
Tax Periods reported under the 52/53-week rule may not end more than 6 days before and not more than 3 days after the end of the month.
If... Then... The Tax Period ending is not more than 3 days after the beginning of the month Edit the previous month. The Tax Period ending is not more than 6 days before the end of the month Edit the month shown on the return. Note:
If the resulting tax year is more than 12 months, correspond to obtain the correct period.
-
On a final return, if the tax period's month and/or year is later than the received date's month and year (future return), edit the tax period to be one month prior to the received date. ( See Figure 3.11.15-13.)
Figure 3.11.15-12
Figure 3.11.15-13
Please click here for the text description of the image.Editing Tax Period on Early-Filed Final Return
-
Identify an "Initial" Short Period Return by any of the following:
-
The "Initial return" box is checked.
-
The return or attachments indicates "INITIAL" , "FIRST RETURN" , "FIRST TIME FILER" , etc.
-
The "Date Business Started" is within 12 months of the Tax Period Ending Date.
-
-
Edit initial return code "2" to the left of Line G. ( See IRM 3.11.15.13.)
-
Identify a "Final" Short Period return by any of the following:
-
The "Final return" box is checked.
-
The return or attachments indicates "FINAL" , "OUT OF BUSINESS" , "NO LONGER LIABLE" , etc.
-
Partnership cites IRC 708(b)(1)(B) .
-
-
A "Final" short period return ends on the date the partnership went out of business. This may be any day of the month. Use the numeric designation of the calendar month in which it ended. If the partnership does not indicate in which month the business ended, use the month the return was received.
-
Edit CCC "F" to the center of Lines 1 and 2 of the return.
-
If the partnership files both a "final " and "initial" short period return using one EIN, which together cover no more than one 12 month or 52-53 week period and both returns are received together for editing, combine both returns into one return. Process the combined return.
-
If the tax period on the return is for a short period other than an "initial" return (Form 1065, page 1, Line G, Box (1)) or a "final" return (Form 1065, page 1, Line G, Box (2)), review Form 1065 for an indication that the partnership is changing their accounting period.
-
See IRM 3.11.15.14.13 for the documentation required for a valid accounting period change.
If... Then... A valid explanation is found Edit CCC "Y" The partnership has provided no explanation of the short period filing Research per Campus procedures for an explanation of the short period return. No explanation can be found Correspond with the partnership for an explanation of the short period and to determine the Tax Period Ending. -
Acceptable explanations include, but are not limited to:
-
States changing due to Rev. Proc. 2006–46 AND
-
Copy of approved Form 1128 or letter ruling or
-
Initial return with letter ruling or approved Form 8716 attached. See IRM 3.11.15.13 for editing the Initial Return Code.
-
-
An Early-Filed Return is defined as a return whose Received Date is prior to its Tax Period Ending Date.
-
Never send back an Early-Filed return to the partnership. Correspond for any missing information before suspending the return:
If... And... Then... The return is early-filed Is not a "Final" return -
Edit Action Code "480"
Note:
When correspondence issues are present on an early-filed return, edit Action Code "211" to the return and edit Action Code "480" to Form 4227.
-
Route to Rejects to suspend the return.
Caution:
If Form 8822 (Change of Address) is attached, see (3) below.
The return is early-filed A "Final" return -
Edit CCC "F" .
-
Edit the tax period to be one month prior to the received date.
Example:
If the Received Date is June, 2009 and the Tax Period Ending Date is December, 2009, change the Tax Period Ending Date to May, 2009.
( See Figure 3.11.15-13.)
-
-
If Form 8822 (Change of address) is attached to the return, compare the name and address information on the Form 8822 to the return.
If... Then... The information is the same Take no action and continue editing the return. The information is different -
Edit the address from Form 8822 to the return.
-
Notate "8822 DETACHED" on tax return.
-
Detach Form 8822 and route to Entity Control using Form 4227 or follow local procedures.
-
Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822"
-
-
The entity area of a tax return identifies the taxpayer on the Business Master File. The entity section of the return contains the following:
-
Check Digits (on preprinted label)
-
Employer Identification Number (EIN)
-
Name
-
"In-care-of" name
-
Address
-
-
There are two types of entities:
-
Preaddressed - An IRS preprinted label (with check digits)
-
Non-preaddressed - Handwritten or typed (no check digits)
Note:
Some forms have IRS labels printed under the National Change of Address (NCOA) program. These returns can be identified by either a solid black line or by pound signs above and to the left of the entity area. These returns do not contain Check Digits and are not considered to be preaddressed. ( See Figure 3.11.15-14. )
Figure 3.11.15-14 -
-
The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the partnership.
-
The EIN is located in the upper right of Form 1065 (Employer Identification Number, Box D) or the top left corner of the preprinted label.
-
Determine the EIN as follows:
-
Preaddressed Returns:
If... And... Then... The partnership changed the EIN Also changed the first name line -
Underline the Name Control.
-
Circle out the Check Digits (if present).
-
Continue editing the return.
There is any major change to the first name line The EIN is not changed -
The return is unprocessable.
-
Route to Entity Control following local procedures for assignment of a new EIN.
There is an EIN change by the partnership No change to the first name line -
Research IDRS.
-
If found, edit to proper location.
-
If EIN is not found, route to Entity Control following local procedures.
The return has been given a new EIN by Entity Control Is notated "TC011" or "IDRS EIN" (Entity has already taken the necessary action) -
Underline the Name Control.
-
Circle out the Check Digits and old EIN (if present).
-
-
Non-Preaddressed Returns:
If... And... Then... EIN is missing You can determine the correct EIN from the attachments and/or schedules 1. Edit the EIN to the proper location. The EIN is either a PTIN or ITIN (Individual Tax Identification Number) Unnumbered -
Remove return from batch.
-
Forward to Entity Control following local procedures for EIN assignment.
The EIN is either a PTIN or ITIN Numbered -
Edit Action Code 320.
-
Leave return in batch.
Multiple EINs are present Unnumbered -
Remove return from batch.
-
Forward to Entity Control following local procedures for EIN assignment.
Multiple EINs are present Numbered -
Edit Action Code 320.
-
Leave return in batch.
The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules: -
Illegible;
-
Missing;
-
Other than 9 digits;
-
All zeroes; or,
-
All nines
Unnumbered -
Research IDRS.
-
If found, edit to the proper location.
-
If not found, route to Entity Control following local procedures.
The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules: -
Illegible;
-
Missing;
-
Other than 9 digits;
-
All zeroes; or,
-
All nines
Numbered -
Circle out all illegible EINs, zeroes or nines.
-
Edit Action code 320.
-
Leave return in batch.
"PENDING" , "APPLIED FOR" , etc., is indicated in the EIN area Unnumbered -
Research IDRS.
-
If found, edit to the proper location.
-
If not found, route to Entity Control following local procedures.
"PENDING" , "APPLIED FOR" , etc., is indicated in the EIN area Numbered -
Edit Action Code 320.
-
Leave return in batch.
-
-
-
The Name Control consists of four characters or less:
-
Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid in the last three positions.
-
Disregard the word "THE" in the Name Control only when followed by more than one word.
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 owner's name is listed.
-
-
See Job Aid Document 7071A, Name Control Job Aid - For Use Outside the Entity Area, to determine the Name Control.
-
If box G(3), "Name change" , is checked, route the return to Entity Control following local procedures.
-
Edit the Name Control as follows:
-
Preaddressed return (a return with a label containing check digits):
If... And... Then... Check digits are present No changes have been made to the IRS label by the partnership No editing is necessary. A first name line change clearly relates to the same partnership Is a minor change that does not affect the Name Control 1. Input "TC 013" . A new EIN is not needed. ( See Figure 3.11.15-15.)
2. Notate "TC 013" in the top left margin of the return.There is a change to the primary name line affecting the Name Control and the EIN is not changed. Note:
If the EIN was changed, See IRM 3.11.15.9.1 (Entity Perfection - EIN)
Unnumbered -
Remove return from batch.
-
Route to Entity Control following local procedures. ( See Figure 3.11.15-16.)
There is a change to the primary name line affecting the Name Control and the EIN is not changed. Note:
If the EIN was changed, See IRM 3.11.15.9.1 (Entity Perfection - EIN)
Numbered -
Edit Action Code 320.
-
Leave return in batch.
A minor change to other than the first Name (e.g., revision of a trade name or a DBA name) -
Notate "TC016" in the upper left margin of the return.
-
Input TC016.
There are any questionable entity changes Unnumbered 1. Remove return from batch.
2. Route to Entity Control following local procedures.There are any questionable entity changes Numbered -
Edit Action Code 320.
-
Leave return in batch.
Figure 3.11.15-15
Figure 3.11.15-16
This image is too large to be displayed in the current screen. Please click the link to view the image.Substantial Change to 1st Name Line on Preaddressed and Unnumbered Return
-
-
Non-preaddressed return (a return with an IRS label containing altered check digits or no check digits present):
If... And... Then... The entity is an IRS label The check digit is not present or has been altered Underline the Name Control. The entity is not on an IRS label Underline the Name Control A second name is present and begins with "FKA" (formerly known as) Continue editing the return. A second name is present and begins with "AKA" (also known as) or "DBA" (doing business as), etc. Circle out the abbreviations. Unable to determine the Name Control Unnumbered -
Research IDRS.
-
If found, edit to the proper location.
-
If not found, route to Entity Control following local procedures.
Unable to determine the Name Control Numbered -
Edit Action Code 352 (Name Research).
-
Leave return in batch.
A return indicates the partnership has filed bankruptcy (e.g., shows "RECEIVER" , "TRUSTEE" , or "DEBTOR IN POSSESSION" in the entity area, signature area or an attachment) Route to Entity Control following local procedures. -
-
-
An "in-care-of" name can be identified by the words "in care of" or the symbols " c/o" or "%" (percent).
-
Ensure the "in-care-of" name is located in the proper location.
If... Then... The in-care-of name is located on the street address line 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 -
Arrow the "in-care-of" name so it appears below the first name line and above the street address.
-
Continue editing 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 partnership -
Arrow the "in-care-of" street address 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.
-
Circle the partnership street address and input TC 016 ( See IRM 3.11.15.9.4 )
-
Continue editing the return.
Note:
Always circle out the "in-care-of" symbol ("%" or "c/o" ) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.
-
-
A change to the "in-care-of" name can be determined by any of the following:
-
A check mark in the "Name change" (Box G(3)), or
-
A check mark in the "Address change" (Box G(4)), or
-
An indication that the "in-care-of" name is changed (i.e., the partnership 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, -
Edit the "in-care-of" name as shown above.
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Continue editing the return.
An "in-care-of" name is present and the "Address change" (Box G(4)) is checked (or there is an indication of an address change), -
Edit the "in-care-of" name as shown above.
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Correct the address. ( See IRM 3.11.15.9.4)
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Continue editing the return.
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Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified.
Exception:
Do not perfect the address on amended returns (CCC "G" ).
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The procedures for perfection of address for preaddressed returns indicating an address change and non-preaddressed returns are as follows:
If... And... Then... The address contains information other than a street address or P.O. Box No perfection is necessary. ISRP will enter the complete address. There is an indication on an attachment that the address has been changed Edit the new address in the Entity section of the return. ( See Figure 3.11.15-17.) Form 8822 (Change of Address) is attached Information is the same Take no action. Form 8822 (Change of Address) is attached Information is different Detach Form 8822 and route to Entity Control. ( See IRM 3.11.15.8.4(3).) Both a P.O. Box and a street address are shown 1. Notate "TC 016" in the upper left margin.
2. Input TC 016Two street addresses are shown -
Underline the second street address.
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Notate "TC016" in the upper left margin.
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.Input TC 016.
One street address is shown The partnership changed the address to a P.O. Box -
Notate "TC016" in the upper left margin.
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Input TC 016.
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 Only the first three digits of the ZIP Code can be determined Edit "01" for the fourth and fifth digits. The "Address change" (Box G(3)) is checked An in-care-of name is present 1) Edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name (in the first position followed by the appropriate name.
2) Correct the address.The National Change of Address (NCOA) label is present Underline the Name Control. ( See Figure 3.11.15-14.) It is necessary to edit the street address See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Note:
Always circle out 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.
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The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If the old address appears (i.e., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP Code (i.e., the previous example would be converted to APO AE 091XX). APO/FPO addresses are considered domestic addresses. Refer to conversion chart below:
Zip Code State Code 340 AA 090–098 AE 962–966 AP
Figure 3.11.15-17
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A foreign (international) address is any address that is not in the 50 states or the District of Columbia.
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Returns with APO or FPO addresses are considered domestic addresses. ( See IRM 3.11.15.9.4.)
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Route returns with a foreign address to Ogden Campus Submission Processing (OSPC) for processing. Prepare 86C to inform the partnership that the return has been sent to Ogden.
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Returns with addresses in the following U.S. Possessions/Territories are considered to be a foreign address for processing purposes but are edited in the same way as domestic addresses.
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A two-character alpha code must be edited for the possession/territory name.
U.S. Possession/Territory 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 -
A ZIP Code must be present on U.S. Possessions/Territories. . Edit the appropriate ZIP Code if one is not provided. See Exhibit 3.11.15-7.
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All other foreign addresses are edited the same as a domestic address with the following exceptions:
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The foreign country must be the last entry in the address. See IRM 3.11.15.9.5.1 for procedures for editing the country code for returns with a Canadian address.
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Circle out the foreign country and edit the country code preceded by a "/" and followed by "/$" as the last entry in the address.See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for official foreign country codes.
Note:
Submission Processing BMF Foreign Address Job Aid (Number 2324–002) provides examples for editing foreign addresses.
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If the foreign address is from Australia, Brazil, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state or territory. See IRM 3.11.15.9.5.1, for Canada.
If... Then... A province, state or territory name is present -
Circle out province, state or territory name.
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Edit appropriate abbreviation. See Exhibit 3.11.15-8. for appropriate code.
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. -
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A ZIP Code or state 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.
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