3.11.217  Form 1120S Corporation Income Tax Returns (Cont. 2)

3.11.217.16 
Deduction Items and Computation of Ordinary Income - Lines 7 through 21, Page 1

3.11.217.16.11  (01-01-2014)
Line 16 - Advertising

  1. Accept taxpayer's entry.

3.11.217.16.12  (01-01-2014)
Line 17 - Pension Profit Sharing Plan

  1. Accept taxpayer's entry.

3.11.217.16.13  (01-01-2014)
Line 18 - Employee Benefit Plan

  1. Accept taxpayer's entry.

3.11.217.16.14  (01-01-2014)
Line 19 - Other Deductions

  1. Edit Page 1, Line 19 as follows:

    If Then
    If the taxpayer uses "Other Deduction" items on Lines 7 through 18, Add the "Other Deduction" items and edit the total to Line 19. Bracket if negative.
    "X" the Other Deductions items from Lines 7 through 18.

3.11.217.16.15  (01-01-2014)
Line 20 - Total Deductions

  1. Edit Page 1, Line 20 as follows:

    If Then
    Line 20 is blank, Add Lines 7 through 19 and edit this amount to Line 20. Bracket if negative.
    If Line 20 is the only entry in the "Deduction" section (Lines 7 through 20), Edit the Line 20 amount to Line 19. Bracket if negative.

3.11.217.16.16  (01-01-2014)
Line 21 - Ordinary Income

  1. Edit Page 1, Line 21 as follows:

    If Then
    Line 21 is blank, Subtract Line 20 (Total Deductions) from Line 6 (Total Income) and edit this amount to Line 21. Bracket if negative.
    If Line 21 is the only entry on Page 1 of the return and the amount is positive, Edit the Line 21 amount to both Lines 5 and 6.
    If Line 21 is the only entry on Page 1 of the return and the amount is negative, Edit the Line 21 amount to both Lines 19 and 20 as a positive amount.

    Note:

    Correspond if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ no Schedule K-1 is attached. See IRM 3.11.217.33, Schedule K-1.

3.11.217.17  (01-01-2014)
Tax and Payments - Lines 22 through 27, Page 1

  1. This subsection contains editing instructions for the Tax and Payments section of Form 1120S.

3.11.217.17.1  (01-01-2014)
Line 22b - Tax From Schedule D

  1. If there is a significant entry on Line 22b and Schedule D, Form 1120S is not attached, correspond.

3.11.217.17.2  (01-01-2014)
Line 22c - Total Tax

  1. Total Tax can only be a positive amount. If blank, edit as follows:

    If Then
    There is no entry on Line 22c, Compute and edit the total of Lines 22a and 22b to Line 22c.
    If there is no entry on any of Lines 22a, 22b, and 22c, and Schedule D is present, Edit the amount from Schedule D Line 23* to Line 22c. (*Schedule D prior year line numbers: 2011 - 2005: Line 21; 2004 - 2003: Line 22; 2002 - 2001: Line 25 (or Line 33, if Line 25 is blank); 1999 and prior: Line 22).

  2. If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 22c.

    If Then
    The amount on Line 22c contains pre-computed interest or penalty or additional charge,
    1. "X" the Line 22c amount.

    2. Delete the interest, penalty or additional charge from the total.

    3. Edit the correct Total Tax to the left of the original entry.

  3. Form 4255, Recapture of Investment Credit. If the amount on Line 22c includes amounts noted as Section 47 Recapture of Investment Credit, and Lines 22a and 22b are blank, accept the taxpayer's entry. Do not correspond for missing Form 4255 if not present.

3.11.217.17.3  (01-01-2014)
Line 23a - Estimated Tax Payments

  1. Accept taxpayer's entry.

3.11.217.17.4  (01-01-2014)
Line 23b - Tax Deposited with Form 7004

  1. Accept taxpayer's entry.

3.11.217.17.5  (01-01-2014)
Line 23c - Credit for Federal Tax Paid on Fuels – Form 4136

  1. If Line 23c has a significant entry, and Form 4136, Credit for Federal Tax Paid on Fuels, is not present, correspond with the taxpayer.

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

3.11.217.17.6  (01-01-2014)
Line 23d

  1. If Line 23d (Line 23e for 2006) is blank and there are entries on any of Lines 23a*, 23b or 23c, compute the total of Lines 23a*, 23b and 23c and edit the total to Line 23d (*2006: Lines 23a, 23b, 23c and 23d).

3.11.217.17.7  (01-01-2014)
Line 23d (2006 Form 1120S) - Credit for Federal Telephone Excise Tax Paid, Form 8913

  1. Edit Action Code "420" and place Form 8913, Credit For Federal Telephone Excise Tax Paid, in the sequence order if Line 15, Column (d) or (e) contain a significant amount.

3.11.217.17.8  (01-01-2014)
Line 24 - Estimated Tax Penalty

  1. Estimated Tax Penalty must be edited when either:

    1. An additional penalty is precomputed on the return, or

    2. Form 2220, Underpayment of Estimated Tax by Corporations, is attached to the return, and shows liability for estimated tax penalty.

  2. To edit Line 24, do the following:

    1. If the taxpayer follows the instructions on Form 2220, the applicable amount must be shown on Line 38*, Form 2220 and on Line 24, Form 1120S. The taxpayer may have also increased Line 25 or decreased Line 26, Form 1120S accordingly. Do not adjust this amount. (*Form 2220 prior year line numbers: 2007 - 2005: Line 34; 2004: Line 38; 2003: Line 36; 2002: Line 34; 2001: Line 36; 2000 - 1998: Line 34; 1997: Line 32.)

    2. If Line 24 is blank, edit the amount from Line 38*, Form 2220 to Line 24 of Form 1120S. (*Form 2220 prior year line numbers: 2007 - 2005: Line 34; 2004: Line 38; 2003: Line 36; 2002: Line 34; 2001: Line 36; 2000 - 1998: Line 34; 1997: Line 32.)

    3. If Line 24 is blank and Line 38*, Form 2220 is also blank, review the Form 2220 to determine the taxpayer's method of computation. (*Form 2220 prior year line numbers: 2007 - 2005: Line 34; 2004: Line 38; 2003: Line 36; 2002: Line 34; 2001: Line 36; 2000 - 1998: Line 34; 1997: Line 32.) If there are entries on Form 2220, Line 37, Columns (a) - (d) (see table below for prior year line numbers), compute the total amount and enter on Line 24 of Form 1120S.

    Note:

    If Form 2220 is attached, some conditions may require CCC "8" .

    Form 2220 Prior Year Line Numbers
    2010 - 2008 2007 - 2005 2004 2003 2002 2001 2000 - 1998
    Line 37
    Columns a-d
    Line 33
    Columns a-d
    Line 37
    Columns a-e
    Line 35
    Columns a-e
    Line 33
    Columns a-d
    Line 35
    Columns a-d
    Line 33
    Columns a-d

3.11.217.17.9  (01-01-2014)
Lines 25 and 26 - Amount Owed/Overpayment

  1. Lines 25 and 26 are edited as positive only. If the taxpayer enters a negative amount, no action is required.

  2. Edit the proper entry to Line 25 or 26 if both are blank. Do both of the following:

    1. Add Lines 22c and 24. Subtract Line 23d (Line 23e for 2006).

    2. Edit the positive result on Line 25 or the negative result (do not bracket) on Line 26.

  3. If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 25 or reduced Line 26.

    If Then
    The amount on Line 25 contains pre-computed interest or penalty or additional charge,
    1. "X" Line 25 amount. .

    2. Delete the interest, penalty or additional charge from the amount owed.

    3. Edit the correct amount owed to the left of the original entry.

    The amount on Line 26 is reduced by pre-computed interest or penalty or additional charge,
    1. "X" Line 26 amount.

    2. Compute the Overpayment amount without the interest, penalty or additional charge.

    3. Edit the correct Overpayment to the left of the original entry.

3.11.217.17.10  (01-01-2014)
Backup Withholding

  1. If the taxpayer has indicated "Backup Withholding" , edit an "X" to the left of the amount and continue processing.

3.11.217.18  (01-01-2014)
♦Paid Preparer Checkbox Indicator♦

  1. The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the taxpayer has elected to allow the Paid Preparer to answer questions about the return as it is processed.

  2. No action is required on amended returns.

  3. 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.
    "No" box is checked;
    Neither box is checked; or
    Both boxes are checked,
    Circle the Paid Preparer's Telephone Number if present.

3.11.217.19  (01-01-2014)
♦Paid Preparer Section♦

  1. The Paid Preparer section is located below the Signature area at the bottom of Form 1120S.

3.11.217.19.1  (01-01-2014)
♦Paid Preparer's Tax Identification Number (PTIN)♦

  1. The Preparer's Social Security Number (SSN) (2009 and prior revisions) or Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's Signature in the PTIN Box (Preparer's SSN or PTIN box for 2009 and prior revisions) at the bottom right margin of Page 1, Form 1120S.

  2. No action is required on amended returns.

  3. The Preparer's SSN is a nine digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

3.11.217.19.2  (01-01-2014)
♦Firm's EIN♦

  1. The Firm's EIN (Paid Preparer's EIN - 2009 and prior revisions) is located below the Preparer's PTIN Box (Paid Preparer's EIN - 2009 and prior revisions) at the bottom right margin of Page 1, Form 1120S.

  2. No action is required on amended returns.

  3. The Firm's EIN (Paid Preparer's EIN - 2009 and prior revisions) is a nine digit number. Circle the EIN if all zeroes or all nines.

3.11.217.19.3  (01-01-2014)
♦Paid Preparer Telephone Number♦

  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right corner of Page 1, Form 1120S.

    If Then
    The return is amended, No action is required.
    The Preparer's Phone Number is more than 10 digits, No action is required.
    The Preparer's Phone Number is illegible or less than 10 digits, Circle the Phone Number.

3.11.217.20  (01-01-2014)
Schedule A - Cost of Goods Sold (2010 and prior revisions)

  1. Schedule A was replaced with Form 1125-A, Cost of Goods Sold.

  2. See IRM 3.11.217.28, Form 1125-A, Cost of Goods Sold, for processing instructions of prior year returns containing a Schedule A.

3.11.217.21  (01-01-2014)
Schedule K - Shareholders' Pro Rata Share Items

  1. This subsection addresses the editing of Schedule K - Shareholders' Pro Rata Share Items.

  2. Correspond for Schedule K if missing or blank unless the return meets any of the following conditions:

    1. The Tax Period 200712 and prior.

    2. Attached Schedule K-1 (Form 1120S), Part III, contains no tax data or reports only Ordinary Income, on Line 1.

    3. Schedule D (Form 1120S), Form 8825, Form 4797, Form 4562, Form 3468, and/or Form 6478 are attached.

    4. The return is for a short period.

    5. The return contains no significant entries or is blank.

3.11.217.21.1  (01-01-2014)
Schedule K, Line 2 - Net Rental Real Estate Income (Loss)

  1. Correspond for Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ not attached.

  2. For processing of Form 8825, see IRM 3.11.217.25, Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation.

3.11.217.21.2  (01-01-2014)
Schedule K, Line 4 - Interest Income

  1. If Form 1120S, Schedule K, Line 4, Interest Income, is blank check the supporting attachments for Portfolio Income. If an amount is present, edit to Line 4.

  2. Bracket if negative.

3.11.217.21.3  (01-01-2014)
Schedule K, Line 10 - Other Income (Loss)

  1. If Form 1120S, Schedule K, Line 10, Other Income (Loss) reflects a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ edit Audit Code "5" in the left margin near Line 9 (Deductions Section).

  2. See IRM 3.11.217.12.1, Audit Codes for additional information.

3.11.217.21.4  (01-01-2014)
Schedule K, Line 13f - Biofuel Producer Credit

  1. Form 6478, Biofuel Producer Credit, (Credit for Alcohol Used as Fuel, for 2012 - 2007) - If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule K, Line 13f (2003 and prior: Line 12a). Form 6478 must be attached. If Form 6478 is not attached, correspond with the taxpayer.

  2. Check Form 6478, Line 4* against Schedule K, Line 13f (2003 and prior: Line 12a). (*Form 6478 prior year line numbers: 2012 - 2010: Line 9; 2009: Line 8; 2008: Line 10; 2007 - 2006: Line 6; 2005: Line 21; 2004 - 2000: Line 22; 1999 - 1996: Line 21.)

    1. If the amounts agree, continue processing. (*Form 6478 prior year line numbers: 2012 - 2010: Line 9; 2009: Line 8; 2008: Line 10; 2007 - 2006: Line 6; 2005: Line 21; 2004 - 2000: Line 22; 1999 - 1996: Line 21.)

    2. If there is a discrepancy, edit the amount from Form 6478, Line 4* to Schedule K, Line 13f (2003 and prior: Line 12a). (*Form 6478 prior year line numbers: 2012 - 2010: Line 9; 2009: Line 8; 2008: Line 10; 2007 - 2006: Line 6; 2005: Line 21; 2004 - 2000: Line 22; 1999 - 1996: Line 21.)

  3. These instructions apply to 2009 tax year only, including fiscal year filers (200901 through 201011). Edit Action Code "343" if Form 6478, Line 5(c) (2009: Line 5(c); 2008: Line 7(c)) or Line 8 (2009: Line 7; 2008: Line 9), has a significant entry. Not applicable for revisions not listed (e.g., 2010 - 2008 form revisions are valid).

    Reminder:

    Do not edit Action Code "343" for Tax Period 201012.

3.11.217.21.5  (01-01-2014)
Schedule K, Line 14l - Total Foreign Taxes

  1. If there is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 14l*, edit an Audit Code "2" in the left margin near Line 9 (Deductions Section) (*Schedule K prior year line numbers are: 2004: Line 14l and Line 14n; 2003 - 2000: Line 15g; 1999 and prior: Line 15e). See IRM 3.11.217.12.1, Audit Codes.

  2. If there is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 14l*, edit an Audit Code "7" in the left margin near Line 9 (Deductions Section). (*Schedule K prior year line numbers are: 2004: Line 14l and Line 14n; 2003 - 2000: Line 15g; 1999 and prior: Line 15e.) See IRM 3.11.217.12.1, Audit Codes.

3.11.217.21.6  (01-01-2014)
Schedule K, Line 16d - Property Distributions

  1. Accept taxpayer's entry.

3.11.217.21.7  (01-01-2014)
Schedule K, Line 18 - Income/Loss Reconciliation
(For 2005 and prior Page 3, Line 17e)

  1. Accept taxpayer's entry.

3.11.217.22  (01-01-2014)
Schedule L - Balance Sheet

  1. Correspond for missing or blank Schedule L unless the return meets any of the following conditions:

    • The Tax Period is 0712 and prior

    • Page 2, Schedule B, Line 10 (prior year Line 8) is checked "Yes"

      Note:

      If both the "Yes" box and the "No" box are checked or neither box is checked and none of the conditions in the bullets listed below are met, correspond.

    • Page 1, Box F, Total assets and Line 1a (2011: Line 1b), Gross receipts or sales contain a "-" (dash), "None" , "N/A" or some similar entry or is less than $250,000

    • Schedule L is crossed out or annotated "0" (zero), "-" (dash), "None" , "N/A" or some similar entry

    • There are no significant entries on Page 1, Lines 1 through 20

    • The "Cash" box on Schedule B is checked or the taxpayer has notated "Single Entry Records" , "See Books" , "Balance Sheet not available" , or similar entry

    • Final return

    • Amended return (CCC "G" )

  2. If the "Yes" box on Form 1120S, Page 2, Schedule B, Line 10 (2011 - 2007: Line 8; 2006 - 2002: Line 9) is checked and Total assets, Page 1, Box F (2006 and prior: Box E) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Gross receipts or sales, Page 1, Line 1a (2011: Line 1b; Line 1c minus 1a if Line 1b is blank) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , delete (slash) Schedule L. (For example, If either Total assets or Gross receipts or sales ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , do not delete Schedule L.)

    Reminder:

    Edit Total Assets, Page 1, Box F (Box E for 2006 and prior) per IRM 3.11.217.9, Total Assets-Page 1, Box F (Box E for 2006 And Prior).

  3. The following information is transcribed from Form 1120S, Page 4, Schedule L. No action is necessary to perfect these amounts. Accept the taxpayer's entry:

    1. Loans to Shareholders, end of year. Schedule L, Line 7 (d).

    2. Total Assets, beginning of year. Schedule L, Line 15 (b).

    3. Loans from Shareholders, end of year. Schedule L, Line 19 (d).

    4. Capital Stock, end of year. Schedule L, Line 22 (d).

    5. Additional Paid-In Capital, end of year. Schedule L, Line 23 (d).

    6. Retained Earnings, end of year. Schedule L, Line 24 (d).

3.11.217.23  (01-01-2014)
Schedule M-1 and Schedule M-2

  1. This section addresses instructions related to Schedule M-1, Reconciliation of Income (Loss), and Schedule M-2, Analysis of Accumulated Adjustments Account.

3.11.217.23.1  (01-01-2014)
Schedule M-1 - Reconciliation of Income (Loss)

  1. The following information is transcribed from Schedule M-1, Reconciliation of Income (Loss), Form 1120S, Page 5 (Page 4 for prior years).

  2. Schedule M-1, Line 3(b) - Travel and Entertainment. Accept taxpayer's entry.

3.11.217.23.2  (01-01-2014)
Schedule M-2 - Analysis of Accumulated Adjustments Account

  1. The following information is transcribed from Schedule M-2, Analysis of Accumulated Adjustments Account, Form 1120S, Page 5 (Page 4 for prior years).

  2. Schedule M-2, Line 1, Column (a) - Balance at beginning of tax year. Accept taxpayer's entry.

3.11.217.24  (01-01-2014)
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations

  1. Schedule N is valid for Tax Periods beginning 01-01-2000. Delete Schedule N if the Tax Period begins prior to 01-01-2000.

  2. S Corporations that, at any time during the tax year, have assets in or operate a business in a Foreign Country or U.S. possession may have to file Schedule N.

  3. Do not correspond if Schedule N is missing. Dummy a Schedule N and edit the applicable entries when Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, or Form 8873, Extraterritorial Income Exclusion, is attached to the tax return.

  4. If Schedule N is present and contains no entries, do not correspond.

  5. If more than one Schedule N is attached, combine the information from all Schedules N, including all subsidiaries and:

    1. Edit to the first Schedule N that contains the EIN of the return being processed. "Staple up" any remaining Schedules N, or

    2. Dummy and edit a Schedule N, for the parent return if one is not present on a consolidated return.

3.11.217.24.1  (01-01-2014)
Schedule N (Form 1120), Line 1a - Form 8858, Foreign Disregarded Entities

  1. Since Tax Period 2004, Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities, has been required to be filed by U.S. persons that are tax owners of Foreign Disregarded Entities.

  2. Edit Audit Code "2" if:

    1. Schedule N (Form 1120), Question 1a is answered "Yes" , or

    2. Form 8858 is present.

  3. Convert prior year (2003 - 2000) Schedule N, Line 1 to Line 1a.

3.11.217.24.2  (01-01-2014)
Schedule N (Form 1120), Line 2 - Number of Forms 8865

  1. No entry is required for Schedule N, Line 2 unless Form 8865 is present.

  2. Edit Line 2 as follows:

    If And Then
    A number is present for Schedule N, Question 2,   Take no further action.
    Schedule N, Line 2 is blank, Form(s) 8865 is attached, Edit the number of Forms 8865 in the dotted line area of Question 2.
    Form 8865 is attached, Schedule N is not present, Dummy a Schedule N and edit the number of Forms 8865 to Schedule N, Line 2.
  3. Edit Audit Code "2" if Form 8865 is attached. See IRM 3.11.217.12.1, Audit Codes.

3.11.217.24.3  (01-01-2014)
Schedule N (Form 1120), Line 3 - Form 8865 Question

  1. Edit Audit Code "2" if Schedule N (Form 1120), Question 3 is answered "Yes" or Form 8865 is attached. See IRM 3.11.217.12.1, Audit Codes.

3.11.217.24.4  (01-01-2014)
Schedule N (Form 1120), Line 4 - Form 5471, Controlled Foreign Corporation

  1. Edit Audit Code "2" if Schedule N (Form 1120), Question 4a is answered "Yes" or Form 5471 is attached. See IRM 3.11.217.12.1, Audit Codes.

  2. No entry is required for Schedule N, Line 4b unless Form 5471 is present.

  3. Edit Line 4b as follows:

    If And Then
    A number is present for Schedule N, Question 4b,   Take no further action.
    Schedule N, Line 4b is blank, Form(s) 5471 is attached, Edit the number of Forms 5471 in the dotted line area of Question 4b.

    Note:

    Document Perfection is responsible for determining the number of any and all Form(s) 5471 received, whether attached to a parent return in a consolidated group, or found as an attachment to a subsidiary return.

    Form 5471 is attached, Schedule N is not present, Dummy a Schedule N and edit the number of Forms 5471 to Schedule N, Line 4b.

3.11.217.24.5  (01-01-2014)
Schedule N (Form 1120), Line 5 - Form 3520 Question

  1. Edit Audit Code "2" if Schedule N (Form 1120), Question 5 is answered "Yes" . See IRM 3.11.217.12.1, Audit Codes.

3.11.217.24.6  (01-01-2014)
Schedule N (Form 1120), Line 6b - Foreign Country Code

  1. Edit Schedule N (Form 1120), Line 6b as follows:

    If And Then
    The taxpayer has entered the name of a Foreign Country in Question 6b,   Write the two letter Country Code to the left of Question 6b. See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    Exception:

    Edit Country Code "OC" if the foreign country is not listed in Document 7475.

    Note:

    Use "UK" for England, Northern Ireland, Scotland, and Wales. Also, "Holland" is not an official country name, but is part of The Netherlands.

    No Foreign Country is present or "US" , "USA" , "America" or similar reference to the United States is present, Box 6a is checked "Yes" , Edit Country Code, "OC" .
    More than one Foreign Country is present,   Edit the Country Code of the first Foreign Country shown.

3.11.217.24.7  (01-01-2014)
Schedule N (Form 1120), Line 7a - Form 8873 Question

  1. Edit Audit Code "2" if Schedule N (Form 1120), Question 7a is answered "Yes" . See IRM 3.11.217.12.1, Audit Codes.

3.11.217.24.8  (01-01-2014)
Schedule N (Form 1120), Line 7b - Number of Forms 8873

  1. No entry is required for Schedule N (Form 1120), Line 7b unless Form 8873 is present.

    Note:

    Input of Command Code (CC) REQ77 / FRM77 with IDRS Transaction Code (TC) "971" and appropriate IDRS Action Code (depending on which election has been made) may be needed with the Form 8873. See IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.

  2. Edit Line 7b as follows:

    If And Then
    A number is present for Schedule N, Question 7b, Form(s) 8873 is attached, Process Form 8873 per IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.
    A number is present for Schedule N, Question 7b, Form(s) 8873 are not attached, Take no further action.
    Schedule N, Line 7b is blank, Form(s) 8873 is attached,
    1. Edit the number of Forms 8873 in the dotted line area of Question 7b.

    2. Process Form 8873 per IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.

    Form 8873 is attached, Schedule N is not present,
    1. Dummy a Schedule N and edit the number of Forms 8873 to Line 7b of Schedule N.

    2. Process Form 8873 per IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.

3.11.217.24.9  (01-01-2014)
Schedule N (Form 1120), Line 7c - Total Extraterritorial Income Exclusion

  1. No entry is required for Schedule N (Form 1120), Line 7c unless Form 8873 is present.

  2. Edit Line 7c as follows:

    If And Then
    An amount is present for Schedule N, Question 7c, Form 8873 is attached, Process Form 8873 per IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.
    An amount is present for Schedule N, Question 7c, Form 8873 is not attached, Take no further action.
    Schedule N, Line 7c is blank, Form(s) 8873 is attached,
    1. Compute the total amount of extraterritorial income exclusion from Line 52* and edit to the area provided on Line 7c (*Form 8873 prior year line numbers: 2006 - 2005: Line 54; 2004: Line 52b or Line 52a if Line 52b is blank; 2003 - 2002: Line 52; 2001 - 2000: Line 55).

    2. Process Form 8873 per IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.

    Form 8873 is present with a significant entry on Line 52* (*Form 8873 prior year line numbers: 2006 - 2005: Line 54; 2004: Line 52b or Line 52a if Line 52b is blank; 2003 - 2002: Line 52; 2001 - 2000: Line 55), Schedule N is not attached,
    1. Dummy a Schedule N and compute the total amount of extraterritorial income exclusion from all attached Forms 8873. Edit the total to the area provided on Schedule N, Line 7c.

    2. Process Form 8873 per IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.

    Note:

    Input of Command Code (CC) REQ77 / FRM77 with IDRS Transaction Code (TC) "971" and appropriate IDRS Action Code (depending on which election has been made) may be needed with the Form 8873. See IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.

3.11.217.25  (01-01-2014)
Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation

  1. If Form 8825 is attached to Form 1120S, compute Line 18a, Total Gross Rents (2006 and prior revisions: Line 17), when there are entries in Page 1, Line 2, Columns A through D and/or Page 2, Line 2, Columns E through H. Edit Form 8825 in positive amounts in dollars only as follows:

    Note:

    Change Line 17 to Line 18a for 2006 and prior revisions of Form 8825.

    If And Then
    Only one Form 8825 is attached, Line 18a is negative
    (2006 and prior revisions: Line 17),
    "X" the negative amount.
    Only one Form 8825 is attached, Line 18a is blank
    (2006 and prior revisions: Line 17),
    Compute and enter a positive amount on Line 18a. See Figure 3.11.217-22, Example of Editing Form 8825.
    Multiple Forms 8825 are attached, Only one Form 8825 has an entry on Line 18a
    (2006 and prior revisions: Line 17),
    1. Accept positive taxpayer entry ("X" negative amount).

    2. Place Form 8825 in sequence order if Line 18a has a positive amount.

    Multiple Forms 8825 are attached, More than one Form 8825 has an entry on Line 18a* or Line 18a* is blank
    (*2006 and prior revisions: Line 17),
    1. Add all Line 2 amounts together (Page 1, Line 2 and Page 2, Line 2).

    2. If positive, edit the amount to Line 18a of the first Form 8825.

    3. Place edited Form 8825 in sequence order.

    Figure 3.11.217-22
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Example of Editing Form 8825

3.11.217.26  (01-01-2014)
Form 8873 - Extraterritorial Income Exclusion

  1. Document Perfection is responsible for processing Part I, "Elections and Other Information" of Form 8873. Elections are identified by inputting Command Code (CC) REQ77 / FRM77 with Transaction Code (TC) "971" and IDRS Action Code "361" , "362" or "363" depending on which election has been made.

    Note:

    "Action Codes" referenced in the Form 8873 instructions are IDRS Action Codes, not to be confused with ERS Action Codes.

  2. If Part I, Lines 1 through 3 of the Form 8873, are not checked, then no "TC 971" needs to be entered on IDRS.

3.11.217.26.1  (01-01-2014)
Form 8873, Line 1 - Section 942(a) (3) Election

  1. If the box is marked for Part 1, Line 1 of Form 8873, enter "TC 971" with IDRS Action Code "361" . Use the current date for the Effective Date.

    Note:

    Edit Action Trail (e.g., “TC 971-361”) in the lower left margin going vertically up the side of the return.

3.11.217.26.2  (01-01-2014)
Form 8873, Line 2 - Extraterritorial Income Exclusion in Lieu of Election

  1. If the box is marked for Part I, Line 2 of Form 8873, enter "TC 971" with IDRS Action Code "362" . Use the current date for the Effective Date.

    Note:

    Edit Action Trail (e.g., "TC 971 - 362" ) in the lower left margin going vertically up the side of the return.

3.11.217.26.3  (01-01-2014)
Form 8873, Line 3 - Domestication Election

  1. If the box is marked for Part I, Line 3 of Form 8873, enter "TC 971" with IDRS Action Code "363" . Use the current date for the Effective Date.

    Note:

    Edit Action Trail (e.g., "TC 971 - 363" ) in the lower left margin going vertically up the side of the return.

3.11.217.27  (01-01-2014)
Schedule D (Form 1120S) - Capital Gains and Losses and Built-in Gains

  1. Edit Schedule D as follows:

    If Then
    All of the following conditions apply:
    1. Form 1120S is for 201212 tax year or subsequent and

    2. The Schedule D is a 2012 or later revision and

    3. Significant entries are present on one or more of the transcription lines.

      • Transcription lines for 2013 are as follows: Part I, Line 1a, Column(s) d and e, Lines 1b - 3, Column(s) d, e, and g, Part II, Lines 8a, Column(s) d and e, Lines 8b - 10, Column(s) d, e, and g, and Line 13.

      • Transcription lines for 2012 are as follows: Part I, Lines 1 - 3, Column(s) d and e, Part II, Lines 8 - 10, Column(s) d and e, and Line 13.

    1. Place Schedule D in sequence order.

    2. Edit Schedule D in dollars only.

    3. “X” any negative transcription entries.

    4. For 2012 Schedule D revisions: Change Page 1, Part I, Line 1 to Line 1b and Page 1, Part II, Line 8 to Line 8b.

    Criteria above is not met, Cross out or slash the Schedule D.

3.11.217.28  (01-01-2014)
Form 1125-A - Cost of Goods Sold (Formerly Form 1120S, Page 2, Schedule A)

  1. Place Form 1125-A, Cost of Goods Sold, in sequence order if entries are present on Line 1 or Line 7. See IRM 3.11.217.14.1, Sequencing of Return.

  2. Edit Form 1125-A in dollars only.

    Note:

    If a negative entry is present on either of Line 1 or Line 7, no action is required.

  3. Form 1125-A (2010 and prior revisions: Schedule A, Line 1) Line 1 - Inventory at the beginning of the year. Accept taxpayer's entry. If Line 1 is blank, edit from the taxpayer's attachment (if present).

  4. Form 1125-A (2010 and prior revisions: Schedule A, Line 3) Line 3 - Cost of labor. No specific editing is necessary, but an entry on this line is indicative of a Salary and Wage Code condition. See IRM 3.11.217.16.3, Salary and Wage Code.

  5. Form 1125-A (2010 and prior revisions: Schedule A, Line 7) Line 7 - Inventory at the end of the year. Accept taxpayer's entry. If Line 7 is blank, edit from the taxpayer's attachment (if present).

  6. Form 1125-A should be dummied if missing and if Line 1 and/or Line 7 are able to be edited from attachments. Use instructions in (2) through (5) above to edit lines. Place dummy Form 1125-A in sequence order.

    Note:

    If a negative entry is present on either of Line 1 or Line 7, no action is required.

  7. For 2010 and prior revisions, follow instructions below if entries are present on Form 1120S, Schedule A, Line 1 or Line 7:

    1. Dummy a Form 1125-A and place in sequence order.

      Note:

      If a negative entry is present on either of Line 1 or Line 7, no action is required.

    2. See Figure 3.11.217-23, Example of Creating a "Dummy" Form 1125-A.

    Figure 3.11.217-23
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Example of Creating a "Dummy" Form 1125-A

3.11.217.29  (01-01-2014)
Form 4136 - Credit for Federal Tax Paid on Fuels

  1. If Form 4136 is missing and a significant entry is claimed on Form 1120S, Page 1, Line 23c for a Fuel Tax Credit, correspond for the missing Form 4136.

  2. If a fuel credit claim is found on other than the appropriate line on the return, and Form 4136 is attached, adjust incorrect entry prior to editing Fuel Tax Credits.

  3. Form 4136 should be placed in sequence order.

  4. If Fuel Tax Credit is claimed on Page 1, Form 1120S and Form 4136 is attached, perfect Column (d) as necessary. Column (d) should equal Line 17* of Form 4136 (*Form 4136 prior year line numbers: 2007: Line 18; 2006: Line 20; 2005: Line 15; 2004 - 2001: Line 10; 2000 - 1997: Line 9). If perfection is not possible, correspond.

  5. Code and Edit is no longer required to renumber the lines on prior year Form 4136 to current year format. Column (d) credit amounts are transcribed using the corresponding Credit Reference Number (CRN) in Column (e). CRNs for prior years 2000 - 1997 must be renumbered when a significant amount is present. Column (e) conversion is provided in Exhibit 3.11.217-2, Form 4136 - Prior Year Conversion Chart.

3.11.217.30  (01-01-2014)
Form 8913 - Credit for Federal Telephone Excise Tax Paid

  1. Edit Action Code "420" and place Form 8913 in the sequence order if a significant amount is present on Line 15, Column (d) or Column (e).

    Note:

    For tax returns filed with tax period ending 200612 through 200711, a refund for the federal telephone excise tax paid on long-distance service may be claimed. The credit claimed is for the tax paid on service that was billed after February 28, 2003, and before August 1, 2006.

3.11.217.31  (01-01-2014)
Form 8941 - Credit for Small Employer Health Insurance Premiums

  1. Place Form 8941 in sequence order if significant entries are present. Significant entries are present on one or more of the transcription lines. Transcription lines are Lines: 1a, 1b, 2 - 5, 10, 13 - 16, and 18. See IRM 3.11.217.34, Form 1120S Prior Year Conversion Chart, for prior year information.

    Note:

    For 2011 and prior revisions, if significant amounts are present:
    Change Line 1 to Line 1a

    Note:

    For 2010 and prior revisions if significant amounts are present:
    Delete Line 16 and Line 18
    Change Line 21 to Line 16
    Change Line 23 to Line 18

3.11.217.32  (01-01-2014)
Form 5884-B - New Hire Retention Credit

  1. Place Form 5884-B in sequence order if a significant entry is present on Line 12 or Line 13 (2011: Line 10 or Line 11; 2010: Line 10 or Line 11). If a significant amount is present on Line 10 or Line 11, line through or "X" Form 5884-B.

    Note:

    A Form 5884-B with Lines 1 through 11 completed should not be attached to a 2012 tax return. A Form 5884-B with lines 12 and 13 completed could be attached to the 2012 return of an S corporation that received this credit on a 2011 Schedule K-1 from a fiscal year shareholder.

3.11.217.33  (01-01-2014)
Schedule K-1

  1. All Form 1120S filers are required to complete and file Schedule K-1 and attach it to the 1120S Return. If no Schedules K-1 are attached, follow the procedures listed below:

    Note:

    Detach current year only Schedules K-1 through November 30th. Always detach future year Schedules K-1. Do not detach prior year Schedules K-1.

  2. Do not correspond for Schedule K-1 if:

    • Form 1120S is a prior year tax period

    • Form 1120S, Line 21, Ordinary Business Income (Loss), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • There are attachments to the return in a standard format which may be used as a Schedule K-1

    • Re-entry return (Form 13596, Reprocessing Returns or Form 3893, Re-Entry Document Control, is attached to return)

    • Amended (CCC "G" ) return

    • IRC 6020(b) return

    • Examination Secured "Substitute for Return" (SFR) returns

    • There are no entries on Form 1120S, Lines 1 through 21

    • Form 1120S has a Form 4251, Return Charge-Out, attached and is being processed as an original return

  3. When correspondence with the taxpayer is required do the following:

    1. On numbered 1120S Returns suspend with Action Code "211" or "215" .

    2. Prepare Approved Correspondence Action Sheet for the missing Schedules K-1.

    3. Enter the small business S Corporation's Name, Address, EIN, Tax Period (YYMM) and Tax Form.

    4. Enter "Use Letter 118C" in the remarks section.

  4. If Line 15 (2003 and prior: Lines 14a through Line 14e) has an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , edit a Tax Preference Code in the left margin near Line 9 (Deductions Section). See IRM 3.11.217.12.4, Tax Preference Code.

  5. For Schedule K-1 editing instructions, see IRM 3.0.101, Schedule K-1 Processing.

3.11.217.34  (01-01-2014)
Form 1120S Prior Year Conversion Chart

  1. The following chart provides information for converting Form 1120S (and other applicable forms and schedules) to the current year form (and schedule).

    Prior Year Conversion - 2012
    Schedule D (Form 1120S)
    Page 1, Part I
    Change Line 1 to Line 1b
    Page 1, Part II
    Change Line 8 to Line 8b

    Prior Year Conversion - 2011
    Form 1120S
    Page 1
    Line out Line 1a
    Line out Line 1b
    Change Line 1c to Line 1a

    Note:

    If Line 1c is blank, add Lines 1a and 1b and edit on Line 1c.

    Change Line 1d to Line 1b
    Change Line 1e to Line 1c

    Prior Year Conversion - 2011
    Form 8941
    Change Line 1 to Line 1a

    Prior Year Conversion - 2010 - 2007
    Form 1120S
    Page 2, Schedule A
    If there are entries on Line 1 and/or Line 7, dummy a Form 1125-A and place in sequence order.

    Prior Year Conversion - 2010 - 2007
    Form 8941
    Change Line 1 to Line 1a
    Delete Line 16 and Line 18
    Change Line 21 to Line 16
    Change Line 23 to Line 18

    Prior Year Conversion - 2006
    Form 1120S
    Page 1
    Line 23d - "X" Line 23d (Credit for Federal Telephone Excise Tax) if an amount is present.
    Change Line 23e to Line 23d
    Page 2, Schedule A
    If there are entries on Line 1 and/or Line 7, dummy a Form 1125-A and place in sequence order.

    Prior Year Conversion - 2005 - 2004
    Form 1120S
    Page 1
    Change Line 14c to Line 14
    Page 2, Schedule A
    If there are entries on Line 1 and/or Line 7, dummy a Form 1125-A and place in sequence order.
    Schedule K
    Change Line 17e to Line 18

    Prior Year Conversion - 2003 - 1994
    Form 1120S
    Page 1
    Change Line 14c to Line 14
    Page 2, Schedule A
    If there are entries on Line 1 and/or Line 7, dummy a Form 1125-A and place in sequence order.
    Schedule K
    Change Line 4a to Line 4
    Change Line 12a to Line 13f
    Change Line 20 to Line 16d
    Change Line 23 to Line 18

Exhibit 3.11.217-1 
Due Date Chart

Due Date Chart
Due Dates
Form 1120S
Tax Period Return Due Date (weekends and holidays considered) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Extended Due Date - 6 months (weekends and holidays considered)
Oct. 2013 1-15-2014 ≡ ≡ ≡ ≡ ≡ ≡ 7-15-2014
Nov. 2013 2-17-2014 ≡ ≡ ≡ ≡ ≡ 8-15-2014
Dec. 2013 3-17-2014 ≡ ≡ ≡ ≡ ≡ 9-15-2014
Jan. 2014 4-15-2014 ≡ ≡ ≡ ≡ 10-15-2014
Feb. 2014 5-15-2014 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 11-17-2014
Mar. 2014 6-16-2014 ≡ ≡ ≡ ≡ ≡ ≡ 12-15-2014
Apr. 2014 7-15-2014 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 1-15-2015
May 2014 8-15-2014 ≡ ≡ ≡ ≡ 2-16-2015
Jun. 2014 9-15-2014 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3-16-2015
Jul. 2014 10-15-2014 ≡ ≡ ≡ ≡ ≡ ≡ 4-15-2015
Aug. 2014 11-17-2014 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 5-15-2015
Sep. 2014 12-15-2014 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 6-15-2015

Exhibit 3.11.217-2 
Form 4136 - Prior Year Conversion Chart

ExhibitsForm 4136 - Prior Year Conversion Chart
Tax Years 2000 - 1998 Conversion Chart
Line Number Credit Reference Number (CRN) Change Credit Reference Number To
1a - c 301 362
1d - f 312 359
2a - b 307 324
3a 303 360
3b 305 353
3c 303 350
4a - b 310 369
5a - b 303 360
6a - c 303 346
7a - b 304 361
8a - c 302 356
Tax Year 1997 Conversion Chart
Line Number Credit Reference Number (CRN) Change Credit Reference Number To
1a - c 301 362
2a - c 312 359
3a - d 303 360
4a - d 304 361
5a - b 307 324
6a - b 310 369
7a - c 302 356
8a - b 305 353

Exhibit 3.11.217-3 
♦Potential Frivolous Arguments Criteria♦

ExhibitsFrivolous Arguments Criteria
Potential Frivolous Argument Description
Alleged Churches/First Amendment Income from non-religious sources and may claim a vow of poverty.
Altered Form Altering any or all line items with the intent of facilitating non-compliance with the tax laws.
Altered Jurat/Uniform Commercial Code (UCC) 1-207 Return contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-207 or a statement that the return was not signed under penalties of perjury.
Amended Returns/Form 843 Claim Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument.
C-Filings This frivolous position includes the following four categories:
a) Files a return claiming various types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns.
b) Files a return containing the filers identifying information but does not request a refund, often lacking sufficient information to determine a tax liability.
c) Files a return with various types of rambling dialogue and/or confusing arguments that no one could reasonably view as a good faith attempt to comply with the law.
d) Files a return that attempts to send some type of message or protest to the IRS, but fails to include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address.
Challenges to Authority/Due Process Questions various administrative authorities such as delegation orders, summons authority, privacy act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized.
Challenges to Authority/Title 26 or "law" in Other Documents Argues that Title 26 of the United States Code is not law because it was never enacted as named.
Collections Issues Files frivolous documents contending that various collections issues are invalid (e.g. Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions.
Disclaimer Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero.
Fifth Amendment Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.
Foreign Income Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign S Corporations from sources within the United States is taxable.
Form 1099-OID
(Original Issue Discount)
An individual or business files a return reporting false amounts of income (Generally "Other" or "Miscellaneous" income) and claims a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099-OID (Original Issue Discount) attached and some have Forms 1096. Other false financial instruments may be filed in the place of or in addition to the Forms 1099-OID such as Form 2439, promissory notes, bonds, sight drafts, etc.
IRC 861 Business
Employment Tax (BMF 861)
Argument targets employers and advises them that wages are exempt from withholding. Based on 26 CFR Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes.
IRS is a Private Organization/Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" .
Not a Person Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14).
Obscene, Vulgar, Harassing Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner.
Protest Against Government Action/Inaction Argues that refusal to file or pay is justified because they disagree with government policies or spending plans.
Sixteenth Amendment Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment.
Straw Men Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man" .
Taxes are Voluntary/Law Does Not Require Submits a return, amended return or correspondence that argues income taxes are voluntary.
U.S. v. Long Submits a return with zero money amounts much the same as the Zero Return category and U.S. V. Long is referenced. See NOTE in Zero returns below.
Unsigned Returns The individual completes a return but fails to sign, a statement indicating disagreement with the tax system is attached or added to the return.
Valuation Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc.
Zero Returns Submits a return with zero money amounts on all or most of the line items on the form (e.g., IRC 861, Forms 2439, OID and other BMF filings that claim no income and request refunds). See Revenue Ruling 2004-34. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income. There are several variations on this type of filing such as those bearing the words "nunc pro tunc" and "not liable" .

Note:

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

Other All others including those listed in Notice 2010-33 or any subsequent superseding notice. See also http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Section-I on irs.gov. This category includes non-filer accounts resulting from initial compliance check such as cross-reference TINs.

Note:

Frivolous arguments citing "Collection Due Process" (CDP) should be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for additional information.

Exhibit 3.11.217-4 
♦Province, State and Territory Abbreviations♦

ExhibitsProvince, State and Territory Abbreviations
Australia State Abbreviation
Australian Capital Territory ACT
New South Wales NSW
Northern Territory NT
Queensland QLD
South Australia SA
Tasmania TAS
Victoria VIC
Western Australia WA
Brazil State Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Esperito Santo ES
Goias GO
Maranhao MA
Mato Grosso MT
Mato Grosso do Sul MS
Minas Gerais MG
Parana PR
Paraiba PB
Para PA
Pernambuco PE
Piaui PI
Rio Grande do Norte RN
Rio Grande do Sul RS
Rio de Janeiro RJ
Rondonia RO
Roraima RR
Santa Catarina SC
Sergipe SE
Sao Paulo SP
Tocantins TO
Canada Province/Territory Province Abbreviation Postal Code Beginning

Note:

If the Canadian Postal Code begins with one of the following, use the corresponding Foreign Country Code in the right most column

Country Code
Alberta AB T XA
British Columbia BC V XB
Manitoba MB R XM
New Brunswick NB E XN
Newfoundland and Labrador NL A XL
Northwest Territories NT X XT
Nova Scotia NS B XS
Nunavut NU X XV
Ontario ON K, L, M, N, or P XO
Prince Edward Island PE C XP
Quebec QC G, H, or J XQ
Saskatchewan SK S XW
Yukon YT Y XY
Cuba Provincias Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad di La Habana CH
Gramma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matazas MT
Municipio Especial Isla de la Juventud IJ
Pinar del Rio PR
Sancti Spiritus SS
Santiago de Cuba SC
(Victoria de) Las Tunas LT
Villa Clara VC
Italy Provincia Abbreviation
Agrigento AG
Alessandria AL
Ancona AN
Aosta/Aoste AO
Arezzo AR
Ascoli Piceno AP
Asti AT
Bari BA
Belluna BL
Beneveto BN
Bergamo BG
Biella BI
Bologna BO
Bolozano Bolzen BZ
Brescia BS
Brindisi BR
Cagliari CA
Caltanisetta CL
Campobasso CB
Caserta CE
Catania CT
Catanzaro CZ
Chieti CH
Como CO
Cosenza CS
Cremona CZ
Crotone KR
Cuneo CN
Enna EN
Ferrara FE
Firenze FI
Foggia FG
Forli FO
Frosinone FR
Genova GE
Gorizia GO
Grosseto GR
Imperia IM
Isernia IS
L'Aquila AQ
La Spezia SP
Latina LT
Lecce LE
Livorno LI
Lodi LO
Lucca LU
Macerata MC
Mantova MN
Massa-Carrara MS
Matera MT
Messina ME
Milano MI
Modena MO
Napoli NA
Novara NO
Nuoro NU
Oristano OR
Padova PD
Palermo PA
Parma PR
Pavia PV
Perugia PG
Pesaro-Urbino PS
Pescara PE
Piacenza PC
Pisa PI
Pistoia PT
Pordenone PN
Potenza PZ
Prato PO
Ragusa RG
Pavenna RA
Peggio de Calabria RC
Reggio nell'Emilia RE
Rieti RI
Rimini RN
Roma RM
Rovigo RO
Salerno SA
Sassari SS
Savona SV
Siena SI
Siracusa SR
Sondrio SO
Taranto TA
Teramo TE
Terni TR
Torino TO
Trapani TO
Trento TN
Treviso TV
Trieste TS
Udine UD
Varese VA
Venezia VE
Verbania VB
Vercelli VC
Verona VR
Vibo Valentia VV
Vincenza VI
Viterbo VT
Mexico State Abbreviation
Aguascalientes AGS
Baja California Norte BCN
Baja California Sur BCS
Campeche CAM
Chiapas CHIS
Chihuahua CHIH
Coahuila COAH
Colima COL
Distrito Federal DF
Durango DGO
Guanajuato GTO
Guerrero GRO
Hidalgo HGO
Jalisco JAL
Mexico MEX
Michoacan MICH
Morelos MOR
Nayarit NAY
Nuevo Leon NL
Oaxaca OAX
Puebla PUE
Queretaro QRO
Quintana ROO QROO
San Luis Potosi SLP
Sinaloa SIN
Sonora SON
Tabasco TAB
Tamaulipas TAMPS
Tlaxcala TLAX
Veracruz VER
Yucatan YUC
Zacatecas ZAC
The Netherlands Province Abbreviation
Drenthe DR
Flevoland FLD
Friesland FR
Gelderland GLD
Groningen GN
Lemburg LB
North Brabant NB
North Holland NH
Overijssel OV
South Holland ZH
Utrecht UT
Zeeland SLD

Exhibit 3.11.217-5 
♦Routing Guide for Attachments♦

ExhibitsRouting Guide for Attachments

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

Attachments should only be detached when specifically instructed.

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

Note:

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

Caution:

The Attachment Guide is included as an exhibit only for use in assisting in the identification of possible forms or conditions that require action or routing to other functions. The guide should not be used in place of the completed IRM section governing those conditions, since space limitations do not always allow for full instructions in the Attachment Guide.

Follow general guidelines below for each attachment:

Form/Document Detach Action
Request for Adjustment to another document YES Route to appropriate function.
Attachment must contain Name, Address, EIN, and Received Date. Edit if missing.
CP 259, 515-518 NO Route notice and return to Collections.

Exception:

Do not route to Collections if "599" is notated.

CP 504/CP 504B
Final Notice - Balance Due
NO
  1. Place CP 504/CP 504B to the front of the return.

  2. Route notice and return to Accounts Management.

Includes tax liability for Multiple Tax Periods or Types of Tax NO Numbered Return - Route to Rejects.

Unnumbered Return - Prepare a dummy return if possible; otherwise, correspond.
 
Other Tax Returns (Original Signature) YES 1. Edit the Received Date to the detached return.
2. Route to appropriate function unless specifically directed otherwise.

Exception:

Returns attached to a consolidated return will NOT be detached.

 
Statement establishing Election to be subject to the Tonnage Tax Regime - Sect 1354 NO Route a copy of the election to:
Brenda E. Sarini,
Internal Revenue Agent
1719 C Route 10
Parsippany, New Jersey
07054-4507
 
Pro Forma Form 1120 (Form 1120 with a notation of "Pro Forma" , "Pro Forma Form 1120" , "Pro Forma Form 1120 New York State" , or similar statement is notated on the return) for New York State NO No action required.  
Statement establishing Reasonable Cause for delinquent filing NO 1. Issue Letter 1382C.

2. Continue editing the return.

See IRM 3.11.217.13.2, CCC "D" - Reasonable Cause for Failing to Pay Timely, and IRM 3.11.217.13.10CCC "R" - Reasonable Cause for Failing to Timely File Return, for additional information.
 
Remittance found NO Immediately hand-carry return and remittance to supervisor.  
Request for e-File Waiver
Statement notating:
"Form 1120S e-File Waiver Request"
YES/NO YES: Ogden - Route request to:
Mail Stop 1057.

NO: Cincinnati - FAX request to:
877-477-0575.
 
 
Request for Form 8109
Deposit Slips, or Coupon Books
NO No action required.  
Request for Forms or Schedules NO If requesting current year forms:
1. Prepare Form 4190.
2. Forward to National Distribution Center (NDC) for processing.

If requesting prior year forms:
1. Prepare Form 6112.
2. Forward to National Distribution Center (NDC) for processing.

Note:

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

 
Request for Acknowledgement NO No action required.  
Request for Installment Agreement YES Ogden - Route to Collections.

Cincinnati - Route to Receipt and Control (R&C).
 
Request for Information or Inquiries YES 1. Photocopy any data necessary to process the return.
2. Attach the photocopy to the return.
3. Route original attachment to the proper office for necessary action.
 
Request for Money Transfer YES/NO YES - If the taxpayer notates transfer of money FROM the return you are processing:
1. Edit CCC "X" to freeze overpayment.
2. Prepare Form 3465 and:
- Indicate in the "Routing" box "Adjustments" .
- Notate the requested action in the "Remarks" box.
3. Attach Form 3465 to the request and route to Accounts Management.
4. Continue editing the return.

NO - If the taxpayer notates transfer of money TO the return you are processing:
1. Prepare Form 3465 and:
- Indicate in the "Routing" box "Rejects" .
- Notate "See attached money transfer request" in "Remarks" box.
2. Edit Action Code 450 to route the request to Rejects.
 
 
State Tax Returns
Original or copy with an original signature
YES Route to Receipt and Control (R&C).  
State Tax Returns Photocopy, facsimile or no signature NO Leave attached.  
Indication of FINAL return NO Edit CCC "F" .

See IRM 3.11.217.13.3, Computer Condition Code "F" - Final Return.
 
NOTICES - Payment Agreement or Disagreement with notice amount   Follow local Submission Processing Center procedures. May involve inputting a STAUP and routing attachment to another function.  
SS-4
Application for Employer ID Number
YES/NO YES (original) - Route to Entity Control.

NO (copy) - No action required.
 
Schedule D (Form 1120S)
Capital Gains and Losses
NO Place in sequence order.

See IRM 3.11.217.14.1, Sequencing of Return, and IRM 3.11.217.27, Schedule D (Form 1120S) - Capital Gains and Losses and Built-in Gains.
 
Schedule F (Form 1040)
Profit or Loss From Farming
NO Possible Salary and Wage Code "1" .

See IRM 3.11.217.16.3, Salary and Wage Code.
 
Schedule K-1, Form 1120S
Shareholder's Share of Income, Credits, Deductions, etc.
YES 1. Detach current year only Schedules K-1 through November 30th.

Note:

Do not detach prior year Schedules K-1.


2. Always detach future year Schedules K-1.
3. See the following IRM sections for further instructions regarding Schedule K-1:
IRM 3.11.217.12.4, Tax Preference Code, and

IRM 3.11.217.12.6, Form 8611, Recapture of Low-Income Housing Credit and Form 8693, Low-Income Housing Credit Disposition Bond, and

IRM 3.11.217.13.20, CCC "9" - Low-Income Housing Forms, and

IRM 3.11.217.16.16, Line 21 - Ordinary Income, and

IRM 3.11.217.21, Schedule K - Shareholders' Pro Rata Share Items, and

IRM 3.11.217.33, Schedule K-1.
 
Schedule M-3 (Form 1120S)
Net Income (Loss) Reconciliation for S Corporations With Total Assets of $10 Million or More
NO Edit CCC "B" .

See IRM 3.11.217.13.1, CCC "B" - Schedule M-3.

Edit Audit Code "8" .

See IRM 3.11.217.12.1, Audit Codes.
 
Schedule N (Form 1120)
Foreign Operations of U.S. Corporations
NO See IRM 3.11.217.24, Schedule N (Form 1120) - Foreign Operations of U.S. Corporations.
Edit Audit Code "2" if any box other than Question 6 is checked "Yes" .
See IRM 3.11.217.12.1, Audit Codes.
 
TDF 90-22.1
Report of Foreign Bank Securities and Other Financial Accounts
YES Route to:
Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
 
56
Notice Concerning Fiduciary Relationship
YES 1. Edit Received Date,
2. Route to Entity Control.
 
433-B
Collection Information Statement for Businesses
YES Ogden - Route to Collections.

Cincinnati - Route to Receipt and Control (R&C).
 
433-D
Installment Agreement
YES
Parts 1, 2 or 3
Ogden - Route to Collections.

Cincinnati - Route to Receipt and Control (R&C).

If Parts 2 and/or 3 are present, leave attached to Part 1 when routing.
 
637
Application for Registration (For Certain Excise Tax Activities)
YES/NO YES - TC 150 has not posted to the tax module:
1. Edit Received Date,
2. Route Form 637 to:
Cincinnati Submission Processing Center (CSPC), Excise
Stop 5701G

NO - TC 150 has posted to the tax module:
1. Route Form 637 and return to:
Cincinnati Submission Processing Center (CSPC), Excise
Stop 5701G
 
843
Claim for Refund and Request for Abatement
YES 1. Edit Received Date.
2. Route to Accounts Management.
 
851
Affiliations Schedule
NO No action required.  
911
Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order)
YES Forward to Taxpayer Advocate Service (TAS).  
926
Return by a U.S. Transferor of Property to a Foreign Corporation
NO Edit Audit Code "2" .

See IRM 3.11.217.12.1, Audit Codes.
 
966
Corporate Dissolution or Liquidation
YES/NO YES - Qualified Subchapter S Subsidiary (QSSS), Consolidation, or subsidiary is indicated:
Route to Entity Control.

NO - No indication of items above:
Possible CCC "F" .

IRM 3.11.217.13.3, CCC "F" - Final Return.
 
1042
Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
YES Ogden - Route to Receipt and Control.

Cincinnati - Route to Ogden Submission Processing Center (OSPC).
 
1042-S
Foreign Person's U.S. Source Income Subject to Withholding
YES
(Copy A only)
Ogden - Route Copy A only to Receipt and Control.

Cincinnati - Route Copy A only to OSPC.

Leave all other copies attached to return.
 
1096
Annual Summary and Transmittal Returns of U.S. Information
YES Route to Receipt and Control.  
1099
Information Return of Income and Payments
(Copy A only)
YES Route to Receipt and Control.  
1120-POL
501(c) U.S. Income Tax Return for Certain Political Organizations
YES Route to Ogden Submission Processing Center.  
1120-X
Amended U.S. Corporation Income Tax Return
NO Give entire return to the Lead.  
1125-A
Cost of Goods Sold
NO Place Form 1125-A in sequence order if significant amounts are present.

See IRM 3.11.217.28, Form 1125-A, Cost of Goods Sold.
 
1128
Application to Adopt, Change or Retain a Tax Year
NO APPROVED - Edit CCC "Y" . Also edit "TC 590" with closing code "020" on Short Period returns.

See IRM 3.11.217.5.4, Short Period - Editing Proof of Entitlement.

NOT APPROVED
See IRM 3.11.217.5.6, Short Period Returns - Editing a Disapproved Application-Form 1128.

NO INDICATION of Approval or Disapproval -
See IRM 3.11.217.5.7, Short Period Returns - Editing Form 1128 With No Indication of Approval or Disapproval.
 
1138
Extension of Time for Payment of Taxes by a Corporation Expecting a Net Loss Carry-back
YES Edit Received Date and route to Accounts Management.

See IRM 3.11.217.5.5, Short Period - Missing Proof of Entitlement.
 
1139
Corporation Application for Tentative Refund
YES Edit Received Date and route to Accounts Management.  
2220
Underpayment of Estimated Tax by Corporations
NO Conditions may require CCC "8" .
May need to edit Line 38, Form 2220 to Line 24, Form 1120S, if no entry is present.

See IRM 3.11.217.13.19, CCC "8" - Waiver of Estimated Tax Penalty, and IRM 3.11.217.17.8, Line 24 - Estimated Tax Penalty.
 
2553
Election by a Small Business Corporation
NO Edit Action Code "347" .

Note:

Action Code 347 is used to route Form 1120S to Entity Control.


See IRM 3.11.217.2.1, Action Codes, for additional information.
 
2848
Power of Attorney and Declaration of Representative
YES/NO YES:Ogden - Route to Stop 6737.

Cincinnati - Route to:
Internal Revenue Service
PO Box 268, Stop 8423
Memphis, TN 38101-0268.

NO - No action is required if a "General Power of Attorney" , "Durable Power of Attorney" , or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821.
 
3115
Application for Change in Accounting Method
NO Edit Audit Code "6" .

See IRM 3.11.217.12.1, Audit Codes.

Original stays with the return. If more than one Form 3115 is present, route one copy to:
CC:CORP:DOM:CORP:T
Ben Franklin Station
P.O. Box 7604
Washington, DC 20044

Duplicate Form 3115 attached to a subsidiary should also be pulled and routed to the address above. Original stays with return.
 
3520
U.S. Information Return - Creation of or Transfers to Certain Foreign Trusts
3520-A

Annual Return of Foreign Trust with U.S. Beneficiaries
NO No action required.  
 
 
3753
Manual Refund Posting Voucher
NO Edit CCC "O" .

See IRM 3.11.217.13.7, CCC "O" - Module Freeze.
 
3949
Information Report Referral
YES
  • Route Form 3949 according to Page 2 of Form 3949 to CI, Exam, Disclosure, etc. following local procedures.

  • Continue processing the return.

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

  • Continue processing the return.

 
4136
Credit for Federal Tax Paid on Fuel
NO Perfect necessary lines. Place Form 4136 in sequence order.

See IRM 3.11.217.29, Form 4136 - Credit for Federal Tax Paid on Fuels.
 
4251
Return Charge-Out
NO No action required.
May be an indication to not correspond for Schedule K-1.

See IRM 3.11.217.33, Schedule K-1.
 
4466
Corporation Application for Quick Refund of Overpayment of Estimated Tax
NO No action required.  
4626
Alternative Minimum Tax - Corporations
NO Possible Tax Preference Code.

If required, edit the code as "4 - 1" in the left margin near Line 9.

See IRM 3.11.217.12.4, Tax Preference Code.
 
4684 Casualties and Thefts NO No action required.  
4797
Sales of Business Property
NO Support for Line 4, Form 1120S.

See IRM 3.11.217.15.3, Line 4 - Net Gain/Loss.
 
4810
Request for Prompt Assessment Under IRC 6501(d)
YES/NO YES - TC 150 Not Posted:
Unnumbered and Numbered - Route a copy of the return and original Form 4810 to the Examination Function. Process the original return.

See IRM 3.11.217.2.10, Prompt Assessment (Form 4810)/Prompt Determination.

NO - TC 150 Posted:

Unnumbered - Route Form 4810 and return to the Examination Function.

Numbered - Edit Action Code "370" .
 
4835
Farm Rental Income and Expenses
NO Possible Salary and Wage Code.

See IRM 3.11.217.16.3, Salary and Wage Code.
 
4848
Annual Employer's Return for Employees Pension or Profit Sharing Plan
YES Route to Files.  
5471
Information Return of U.S. Persons With Respect to Certain Foreign Corporations
(Including 5471 Schedules J, M, N and O)
NO Edit Audit Code "2" in the left margin near Line 9.
Edit the Number of Forms 5471 to Line 4b of Schedule N.
Dummy a Schedule N if not present and edit the number of Forms 5471 to Line 4b.

See IRM 3.11.217.12.1, Audit Codes.

See IRM 3.11.217.24.4, Schedule N (Form 1120), Line 4 - Form 5471, Controlled Foreign Corporation.
 
5472
Information Return of a Foreign Owned Corporation or Business
NO Edit Audit Code "2" if Form 5472 is attached.

See IRM 3.11.217.12.1, Audit Codes.
 
5500
Annual Return/Report of Employee Benefit Plan
YES Route to the appropriate area or Submission Processing Center. Attach Form 4227, Intra-SC Reject or Routing Slip, with the following information:
  • Type of return

  • DLN

  • Received Date

  • Notation of either "original" or "substitute" return

 
5713
International Boycott Report
YES/NO YES - If an original and a copy are attached, detach the original and route to:
OSPC SOI
Mail Stop 6112

NO (Copy) - Edit Audit Code "2" if both questions on Line 7(f), Form 5713 are answered "Yes" .

Edit Audit Code "7" if both questions on Line 7(f) are not answered "Yes" .

See IRM 3.11.217.12.1, Audit Codes.
 
5792
Request for IDRS Generated Refund (IGR)
NO Possible CCC "O" .

See IRM 3.11.217.13.7, CCC "O" - Module Freeze.
 
Form 5884-B
New Hire Retention Credit
NO Place in sequence order if a significant entry is present on Line 10 or Line 11.

See IRM 3.11.217.32, Form 5884-B - New Hire Retention Credit.
 
6252
Installment Sale Income
NO Edit Installment Sale Indicator Code in the left margin near Line 9.

See IRM 3.11.217.12.3, Installment Sale Indicator.
 
6478
Biofuel Producer Credit
(Alcohol and Cellulosic Biofuel Fuels Credit for 2012 - 2007)
NO Compare Form 6478 with Form 1120S, Schedule K, Line 13f (2003 and prior year: Line 12a).

These instructions apply to 2009 tax year only, including fiscal year filers (200901 through 201011).

Edit Action Code "343" if Form 6478, Line 5(c) (prior year line numbers: 2009: Line 5(c); 2008: Line 7(c)), or Line 8 (prior year line numbers: 2009: Line 7; 2008 Line 9), has a significant entry. Not applicable for revisions not listed (e.g., 2010 - 2008 form revisions are valid).

Reminder:

Do not edit Action Code "343" for Tax Period 201012.



See IRM 3.11.217.21.4, Schedule K, Line 13f, - Biofuel Producer Credit.
 
6781
Gains and Losses from Section 1256 Contracts and Straddles
NO Edit CCC "I" .

See IRM 3.11.217.13.5, CCC "I" - Tax Straddles and Future Contracts (Form 6781).
 
7004
Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns
YES/NO YES - If Form 7004 is for other than the tax return or Tax Period being filed, route to Receipt and Control.

NO - If Form 7004 is for the tax return it is attached.
 
8027
Employer's Annual Information Return of Tip Income and Allocated Tips
8027-T
Transmittal for Form 8027
YES Route to Cincinnati Submission Processing Center.  
8050
Direct Deposit of Corporate Tax Refund
NO Place in page order and continue processing.

See IRM 3.11.217.14.1, Sequencing of Return.
 
8082
Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR)
NO Edit Audit Code "1" in the left margin near Line 9.

See IRM 3.11.217.12.1, Audit Codes.
 
8275
Disclosure Statement
8275-R
Regulation Disclosure Statement
NO Edit Audit Code "1" in the left margin near Line 9.

See IRM 3.11.217.12.1, Audit Codes.
 
8283
Non-Cash Charitable Contribution
NO Edit Audit Code "3" if either:
- Art Box ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is checked or
- Page 2, Part I, Line 5, Column C entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

See IRM 3.11.217.12.1, Audit Codes.
 
8288
U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests
8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests
NO If refundable credit is claimed, route to OSPC.  
8404
Computation of Interest-Charge on DISC-Related Deferred Tax Liability
YES Route to CSPC.  
8586
Low-Income Housing Credit
NO Possible CCC "9" .

See IRM 3.11.217.13.20, CCC "9" - Low-Income Housing Forms.

Follow editing procedures in IRM 3.11.217.12.5, Form 8586, Low Income Housing Credit.
 
8594
Asset Acquisition Statement
NO Edit Audit Code "3" if Form 8594 has an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in Box 3.

See IRM 3.11.217.12.1, Audit Codes.
 
8609
Low-Income Housing Credit Allocation and Certification
8609-A (prior year Form 8609 (Schedule A))
Annual Statement for Low-Income Housing Credit
NO Edit CCC "9" .

See IRM 3.11.217.13.20, CCC "9" - Low-Income Housing Forms
 
8611
Recapture of Low-Income Housing Credit
NO Edit Line 14, Form 8611 in the left margin near Line 9.
Edit as "L6 -" followed by the credit amount.

Follow editing procedures in IRM 3.11.217.12.6, Form 8611, Recapture of Low-Income Housing Credit and Form 8693, Low-Income Housing Credit Disposition Bond.

Edit CCC "9" .

See IRM 3.11.217.13.20, CCC "9" - Low-Income Housing Forms.
 
8621
Information Return by a Shareholder of a Passive Foreign Investment Co. or Qualified Electing Fund
NO Edit Audit Code "2" if Form 8621, Part V* (Distributions From and Dispositions of Stock of a Section 1291 Fund), Lines 15a through Line 16f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . (*For 2011 and prior: Part IV, Lines 10a through Line 11f).

Edit Audit Code "7" if Form 8621, Part V* (Distributions From and Dispositions of Stock of a Section 1291 Fund), Lines 15a through Line 16f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . (*For 2011 and prior: Part IV, Lines 10a through Line 11f).

See IRM 3.11.217.12.1, Audit Codes.
 
8693
Low Income Housing Credit Disposition Bond
NO Edit CCC "9" .

See IRM 3.11.217.13.20, CCC "9" - Low-Income Housing Forms.
 
8697 (Refund)
Interest Computation Under the Look-Back Method for Completed Long-Term Contracts
YES Edit Tax Period and EIN on Form 8697 and route to Accounts Management if a refund is shown on Part I, Line 9 or Part II, Line 10 of Form 8697.  
8716
Election to Have A Tax Year Other Than a Required Year
NO If "ACCEPTED" , edit CCC "Y" .

See IRM 3.11.217.13.15, CCC "Y" - Short Period Return for Change of Accounting Period, and IRM 3.11.217.5.4Short Period - Editing Proof of Entitlement.
 
8734
Support Schedule for Advance Ruling Period
YES Route to CSPC.  
8752
Required Payment of Refund Under "Section 7519"
YES/NO YES - Original - Route to Receipt and Control.

NO - Copy - No action required.
 
8821
Tax Information Authorization
YES/NO YES:Ogden - Route to Stop 6737.

Cincinnati - Route to:
Internal Revenue Service
PO Box 268, Stop 8423
Memphis, TN 38101-0268.

NO - No action is required if a "General Power of Attorney" , "Durable Power of Attorney" , or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821.
 
8822
Change of Address, or

8822-B, Change of Address or Responsible Party - Business
YES/NO YES - If the mailing address information is different and/or a location address is listed on Form 8822/Form 8822-B, Line 7, then route to Entity Control.

NO - If the mailing address information is the same and no location address is listed on Form 8822/Form 8822-B, Line 7.

See IRM 3.11.217.4.5, Entity Perfection-Domestic Addresses, (3) for additional information.

Note: A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.
 
8824
Like-Kind Exchanges
NO If Form 8824 is attached, edit CCC "1" .

See IRM 3.11.217.13.16, CCC "1" - Like-Kind Exchanges.
 
8825
Rental Real Estate Income and Expenses of a Partnership or an S Corporation
NO Place in Page order.
Compute Line 2, Columns A through H and enter on Line 18a (2009 and prior: Line 17) of Form 8825.

See IRM 3.11.217.14.1, Sequencing of Return, and IRM 3.11.217.25, Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation.
 
8832
Entity Classification Election
NO Edit Audit Code "2" if either Box 6(d), (e) or (f) is checked (January 2006 and prior revisions: Box 2(d), (e) or (f)).

See IRM 3.11.217.12.1, Audit Codes.
 
 
8833
Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
NO Edit CCC "L" .

See IRM 3.11.217.13.6, CCC "L" - Treaty Based Positions.

Edit Audit Code "2" .

See IRM 3.11.217.12.1, Audit Codes.
 
8858
Information Return of U.S. Persons With Respect to Foreign Disregarded Entities
NO Edit Audit Code "2" .

See IRM 3.11.217.12.1, Audit Codes.
 
8865
Return of U.S. Persons with Respect to Certain Foreign Partnerships
NO Edit Audit Code "2" .

See IRM 3.11.217.12.1, Audit Codes.

Edit the number of Forms 8865 to Line 2 of the Schedule N.
Dummy a Schedule N if not present and edit the number of Forms 8865 to Line 2.

See IRM 3.11.217.24.3, Schedule N (Form 1120), Line 3 - Form 8865 Question.
 
8866 (Refund)
Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method
YES Edit Tax Period and EIN on Form 8866 and route to Accounts Management if a refund is shown on Line 9 of Form 8866.  
8866 (Balance Due)
Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method
NO No action required.  
8869
Qualified Subchapter S Subsidiary Election
YES Route to Entity Control.  
8870
Information Return for Transfers Associated with Certain Personal Benefit Contracts
YES Route to:
EO Compliance Unit (EOCU)
Ogden IRS Center
Mail Stop 1112
 
8871
Political Organization Notice of Section 527 Status
YES Route to Receipt and Control to be re-batched.  
8872
Political Organization Report of Contributions and Expenditures
YES Route to Receipt and Control to be re-batched.  
8873
Extraterritorial Income Exclusion
NO Edit the number of Form(s) 8873 attached to Line 7b, Schedule N.

See IRM 3.11.217.24.8, Schedule N (Form 1120), Line 7b - Number of Forms 8873.

Also, edit the total of *Line 52 of all attached Form 8873 to Line 7c, Schedule N. (*Line 54 for 2006-2005, Line 52b or if 52b is blank, Line 52a for 2004, Line 52 for 2003-2002, and Line 55 for 2001-2000).

Dummy a Schedule N if not present and edit the number of Forms 8873 to Line 7b and edit the total amount from Line 52, Form 8873 to Line 7c, Schedule N.

See IRM 3.11.217.24.9, Schedule N (Form 1120), Line 7c - Total Extraterritorial Income Exclusion.

Input Command Code (CC) REQ77 / FRM77 with IDRS Transaction Code (TC) "971" and appropriate IDRS Action Code depending on which election has been made.

See IRM 3.11.217.26, Form 8873, Extraterritorial Income Exclusion.
 
8875
Taxable REIT Subsidiary Election
NO If attached to the return, no action is required.

Note:

Form 8875 is processed at OSPC only.

 
8883
Asset Allocation Statement Under Section 338
NO Edit CCC "S" if Form 8883 is attached.

See IRM 3.11.217.13.11, CCC "S" - Form 8883, Asset Allocation Statement Under Section 338.

Edit Audit Code "3" if Form 8883 has an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in Box 5a.

See IRM 3.11.217.12.1, Audit Codes.
 
8886
Reportable Transaction Disclosure Statement
NO Edit CCC "T" .

See IRM 3.11.217.13.12, CCC "T" - Form 8886, Reportable Transaction Disclosure Statement.

Edit Audit Code "1" if Form 8886 is attached.

See IRM 3.11.217.12.1, Audit Codes.
 
8913
Credit for Federal Telephone Excise Tax Paid
NO Edit Action Code "420" and place Form 8913 in sequence order if significant amounts are present on Line 15(d) and/or Line 15(e).

See IRM 3.11.217.30, Form 8913 - Credit for Federal Telephone Excise Tax Paid.
 
8938, Statement of Foreign Financial Assets NO If attached to the return, no action is required.  
8941
Credit for Small Employer Health Insurance Premiums
NO Place in sequence order if significant entries are present.

See IRM 3.11.217.14.1, Sequencing of Return, and IRM 3.11.217.31, Form 8941 - Credit for Small Employer Health Insurance Premiums.
 
9358
Information About Your Tax Return
YES Route to Service Center (SC) Collections.  
9465
Installment Agreement Request
YES Form 9465 and any Pre-Assessed Installment Agreement:
Ogden - Route to Collections.

Cincinnati - Route to Receipt and Control (R&C).
 
12857
Refund Transfer Posting Voucher
NO Possible CCC "O" .

See IRM 3.11.217.13.7, CCC "O" - Module Freeze.
 

Exhibit 3.11.217-6 
♦U.S. Possessions ZIP Codes♦

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

Exhibit 3.11.217-7 
♦USPS.com Track & Confirm Record♦

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