Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, TAS 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.

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

Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden, and Paper Processing Branch BMF Code & Edit/Error Resolution System (ERS).

BMF Consistency subsections are identified by a "♦" (diamond) before and after the title.

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.

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP) System. The editing can be entered in brown, red, orange, purple or green pencil/pen.

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.

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.

For a description of specific edit marks, see the table below:

A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 4.10.12, Frivolous Return Program, shown in Exhibit 3.11.217-3.

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

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

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.

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

Edit the Action Code in the bottom left margin of the return.

Assign Action Codes in the following priority:

Attach Form 4227 when more than one Action Code is needed. Edit the second Action Code on Form 4227.

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. See Figure 3.11.217–1.

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

Continue perfecting the return after editing the Action Codes.

Valid Action Codes are listed below:

A tax return is an OSPC only return if at least one of the following conditions exists:

(CSPC) If the tax return is an " OSPC only" return, discontinue perfection of the return. Prepare Letter 86C to inform the taxpayer the return has been sent to the Ogden Submission Processing Campus.

If the tax return is other than an "OSPC only" return, perfect the return.

Action to Secure Perfection:

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

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

Listed below are letters and a form which are provided by Headquarters for Submission Processing Center use in corresponding for items listed in this IRM. It is expected that examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Center Correspondex Handbook for selection of appropriate letters.

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

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.

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

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

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.

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 or Form 13596 to determine the action needed to make the return processable.

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 (Schedule K-1 Processing).

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:

The following data must be edited on all Amended returns:

If a Prompt Assessment, IRC Section 6501 is requested, either in the form of a letter or on Form 4810, Request for Prompt Assessment Under IRC Section 6501(d), or a "Prompt Determination" is requested under IRC Section 505(b) of the U.S. Bankruptcy Code.

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

Figure 3.11.217-2

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For S Corporation returns claiming a refund of the Federal Telephone Excise Tax Credit (Form 8913) ONLY and no other income or deduction entries are present on the return, edit the following:

All prior year returns must be reformatted to current year format. See the Job Aids for specific year coding.

If the return is on other than current form format (may be either a prior year or non-standard form) and the transcription lines cannot be numbered to agree with the current year return:

If a taxpayer has filed Form 1120 and the Entity Control Unpostable Unit has determined the taxpayer has a valid Small Business Election (Form 2553, Election by a Small Business Corporation) on file, the Form 1120 must be converted to Form 1120S in order to be processed.

Document Perfection will edit the following:

Reference is made throughout this IRM to "significant entries" . A significant entry is defined as any amount other than zero.

A signature and jurat are required on all returns except the following:

Do not correspond for a signature on "CIS" returns that have Form 13596, Reprocessing Returns, attached. See 3.11.217.2.4.1 (Correspondence Imaging System (CIS), for processing instructions).

If a signature is missing, correspond:

If the jurat is altered or stricken (crossed-out), see IRM 3.11.217.1.4 (Frivolous Arguments) for frivolous return instructions.

Accept a "signature declaration " (a signature with jurat obtained through IRS correspondence) if attached to the return.

Since tax examiners are not expected to be handwriting experts, Section 301.6064-1 of the Regulations allows the Service to presume that the signature on the return, statement or other document is the true signature of the person who actually signed the document.

Only one correspondence is required for a signature.

When the return serves only as a transmittal for statements, schedules, and other attachments, or is otherwise incomplete, analyze the supporting documents and edit the missing entries on the form itself.

Examine attachments and edit the information to appropriate transcription lines of both the income and deduction sections.

Secured Delinquent Returns are returns secured by compliance personnel. If information is missing from one of these returns, do not send the return back to the taxpayer; correspond using approved Correspondence Action Sheet.

Document Perfection is not required to edit a vertical line, 00, dash, or decimal point to indicate dollars and cents.

Edit negative entries as follows:

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

There are two types of entities:

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

The EIN is located in the upper right of the form ("Employer Identification Number" box) or the top left corner of the preprinted label.

Determine the EIN as follows:

The Name Control consists of four characters or less.

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

If Box H(2) (Box F(3) for 2006 and prior) "Name Change" is checked, route the return to Entity Control following local procedures.

Edit the Name Control as follows:

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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.

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

Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified.

The procedures for perfection of addresses for preaddressed returns indicating an address change and non-preaddressed returns are as follows:

Figure 3.11.217-7

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Figure 3.11.217-8

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Figure 3.11.217-9

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The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If the old address appears, convert to the new state code abbreviation based on the ZIP Code (e.g., APO New York, NY 091XX would be converted to APO AE 091XX). APO/DPO/FPO addresses are considered domestic addresses. Refer to APO/DPO/FPO Conversion Chart below:

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

Returns with APO, DPO or FPO addresses are considered domestic addresses. See IRM 3.11.217.4.5 (Entity Perfection-Domestic Addresses).

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

Returns with addresses in the following U.S. Possessions/Territories are considered to be foreign for processing purposes but are edited in the same way as domestic addresses.

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

All Forms 1120S must have a Tax Period.

Edit the Tax Period to the right of the title area of Form 1120S in YYMM format following the instructions below.

A Tax Period should end on the last day of a month. (Ignore a minor discrepancy such as October 30 instead of October 31). The exceptions are a 52-53 week filer, and final and/or short period returns. The table below identifies examples of Tax Periods.

Tax Periods reported under the 52-53 week rule may end not more than 6 days before, and not more than 3 days after, the end of a month. In the edit format, use the numeric designation of the month, the last day of which is closest to the actual ending date.

If the Tax Period is for more than 12 months or 53 weeks, correspond.

A "Final" short period return ends on the date the taxpayer went out of business. This may be any day of the month. Use the numeric designation of the calendar month in which it ends. If the taxpayer has not indicated in which month the business ended, use the numeric designation of the month the return was received.

On a "Final" return if the Tax Period's month and year is equal to or 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 3.11.217-10.

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On a "Final" return, if the Received Date is after the short period due date but on or before the regular full Tax Period due date (including grace period), edit CCCs "R" and "F" .

The separate short period return of a subsidiary which became affiliated with a "consolidated" group may end on the day preceding such affiliation. As a practical matter, do not question the ending date on any change-of-accounting period return.

Check all Tax Periods for the Statute of Limitation (2 years and 9 months from the normal due date of the return). For statute instruction, see IRM 3.11.217.2.7 (Statute Returns).

Never send an Early-Filed return back to the taxpayer.

If the month of the Tax Period is the same or after the month of the Received Date, determine how early the return has been filed:

A Short Period Return is one which covers a period of less than 12 months or 52–53 weeks.

Use the table below to identify and edit proof of entitlement.

Figure 3.11.217-11

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This subsection is reserved.

If proof of entitlement is missing or the taxpayer states on the return or an attachment that the S Corporation has filed an application but has not received a response, research IDRS using BMFOLE for approval or disapproval information and proceed as follows:

If Form 1128 is disapproved, the return is considered unprocessable:

When a Form 1128 is attached with no indication of approval or disapproval and no proof of entitlement is present, research IDRS using BMFOLE for approval or disapproval and proceed as follows:

Forms 1128 with neither approval or disapproval, discontinue processing Form 1120S. Route Form 1120S and Form 1128 to Entity Control as directed in the paragraphs below.

Figure 3.11.217-12

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Route to Accounting for possible adjustment action any return meeting both conditions below.

Take the following action when routing these returns to Accounting. See Figure 3.11.217-13.

Figure 3.11.217-13

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