3.11.249  Processing Form 8752 (Cont. 1)

3.11.249.8 
Unprocessable Procedures

3.11.249.8.5  (01-01-2015)
Rejection of Documents

  1. Reject a document for the following reasons:

    1. The document is for a tax period prior to December 31, 1990.

    2. The document is a type that has not been included in the Automated Data Processing (ADP) system.

    3. The filer sends a blank return and states that he/she is not required to file or does not understand why he/she received the Form 8752.

  2. Prepare Form 4227, Intra-SC Reject or Routing Slip (or other appropriate routing slip). Indicate the reason for rejection, and attach the form to the face of the document immediately under the entity data for the following:

    1. Numbered Document - Edit CCC "U" on the document and leave it in the block.

    2. Unnumbered Document - Remove the document from the block and forward it to Receipt and Control.

    Note:

    In addition, if either a blank return as described in (1)c above, or a letter or statement is received from the taxpayer containing any statements for NOT filing Form 8752, make a photocopy of the return (and the letter) and route to Entity Control following local procedures.

3.11.249.8.6  (01-01-2015)
Disposition of Documents

  1. Blocked and numbered documents that have been coded and edited will be sent to Data Conversion for transcribing.

  2. Unnumbered documents that have been coded and edited will be sent to Receipt and Control for blocking and numbering.

  3. Documents leaving the campus will be sent to Receipt and Control for shipment. Prepare Form 4227 (or other appropriate routing slip) with applicable routing instructions.

  4. Documents not leaving the campus will be sent to the appropriate function in the campus for the required action. This includes items detached from documents to be processed that require correspondence, accounting, or other action. See IRM 3.11.249.4.2 (2) for preparation of Form 4227, Intra-SC Reject or Routing Slip.

3.11.249.9  (01-01-2015)
General Entity Perfection

  1. This section includes information describing perfection of the entity and address areas of the Form 8752. The type of entity present on the return determines the Name Control procedure.

3.11.249.9.1  (01-01-2015)
Entity Perfection - General

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

    1. Employer Identification Number (EIN)

    2. Name

    3. Address

    4. Tax Period

3.11.249.9.2  (01-01-2015)
Entity Perfection - Employer Identification Number (EIN)

  1. The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the Form 8752.

  2. The EIN is located to the right of the Name field in the entity area of the return.

  3. Determine the EIN as follows:

    If And Then
    EIN is missing You can determine the correct EIN from the attachments and/or schedules, Edit the EIN to the proper location.
    The EIN is either a Preparer Tax Identification Number (PTIN) or Individual Taxpayer Identification Number (ITIN) Numbered return,
    1. Enter CCC "U" on the return.

    2. Route to Entity Control following local procedures (e.g., Attach Form 4227 to the return).

    3. Leave return in batch.

    The EIN is either a PTIN or ITIN Unnumbered return,
    1. Remove return from batch.

    2. Route to Entity Control following local procedures.

    Multiple EINs are present Numbered return,
    1. Enter CCC "U" on the return.

    2. Route to Entity Control following local procedures (e.g., Attach Form 4227 to the return).

    3. Leave return in batch.

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

    2. Route to Entity Control following local procedures.

    The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules;
    • Illegible

    • Missing

    • Other than 9 digits

    • All zeroes or

    • All nines

    Numbered return,
    1. Circle out all illegible EINs, zeroes, and/or nines.

    2. Enter CCC "U" on the return.

    3. Route to Entity Control following local procedures (e.g., Attach Form 4227 to the return).

    4. Leave return in batch.

    The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules;
    • Illegible

    • Missing

    • Other than 9 digits

    • All zeroes or

    • All nines

    Unnumbered return,
    1. Research IDRS. (e.g., Command Code (CC) NAMES or CC EINAD or other Command Code).

    2. If found, edit to the proper location.

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

    EIN is missing, "Applied for," "Pending," etc., and cannot be located on attachments Numbered return,
    1. Enter CCC "U" on the return.

    2. Route to Entity Control following local procedures (e.g., Attach Form 4227 to the return).

    3. Leave return in batch.

    EIN is missing, "Applied for," "Pending," etc., and cannot be located on attachments Unnumbered return,
    1. Research IDRS. (e.g., Command Code (CC) NAMES or CC EINAD or other Command Code).

    2. If found, edit to the proper location.

    3. If not found, route to Entity Control following local procedures (e.g., Form 4227 (or other appropriate routing slip)).

    4. See Figure 3.11.249-2, Form 8752 with Partial EIN.

    Figure 3.11.249-2

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  4. New EIN assigned - If the return has been given a new EIN by Entity Control, underline the Name Control. No further editing of the entity data is necessary. See Figure 3.11.249-3, Form 8752 Illustrating EIN Assigned by Entity Control.

    Figure 3.11.249-3

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  5. Returns with attachments or statements for the following conditions should be routed to Entity Control following local procedures (e.g., Form 4227 (or other appropriate routing slip)).

    Note:

    If the return is numbered, edit Computer Condition Code (CCC) "U" and leave the return in the block (batch).

    • Name change requiring a new EIN

    • Return is filed under another EIN

    • Filing requirement was incorrectly established

    • Taxpayer files bankruptcy

3.11.249.9.3  (01-01-2015)
Entity Perfection - Name Control

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

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid at the end of the Name Control.

    2. Disregard the word "THE" in the Name Control only when followed by more than one word.

    Note:

    If an individual and a trade name are present and it can be determined that the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships.

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

  3. You must determine the type of entity present on the return because the type of entity determines the Name Control procedures you must use.

    1. Individuals

    2. Corporations

    3. Partnerships

    4. Trusts and Estates

    5. Other organizations

  4. Edit the Name Control as follows:

    1. If And Then
      Able to determine the Name Control,   Underline the Name Control.
      Unable to determine the Name Control, Numbered,
      1. Enter CCC "U" on the return.

      2. Route to Entity Control following local procedures (e.g., Attach Form 4227 to the return).

      3. Leave return in batch.

      Unable to determine the Name Control, Unnumbered,
      1. Research IDRS. (e.g., Command Code (CC) NAMES or CC EINAD or other Command Code).

      2. If found, edit to the proper location.

      3. If not found, route to Entity Control following local procedures (e.g., Form 4227 (or other appropriate routing slip)).

3.11.249.9.4  (01-01-2015)
Entity Perfection - "In-Care-Of" Name

  1. An "In-Care-Of" name can be identified by the words "In-Care-Of" , or the symbols "c/o" or "%" (percent).

  2. Ensure the "In-Care-Of" name is located in the proper location:

    If Then
    The "In-Care-Of" name is located on the street address line preceding the street address, No editing is required.
    The "In-Care-Of" name is located above the first name line or below the street address, Arrow the "In-Care-Of" name so it appears below the first name line and above the street address.
    The "In-Care-Of" name is shown on an attachment, Edit the "In-Care-Of" name above the street address beginning with the "%" or "c/o" in the first position.
    The street address for the "In-Care-Of" name is different from the street address of the Form 8752,
    1. Arrow the "In-Care-Of" street address below the "In-Care-Of" name or edit the "In-Care-Of" street address below the "In-Care-Of" name if located on an attachment.

    2. Circle the street address and input TC 014.

    3. Notate "TC 014" in the upper left margin.

    Note:

    Always circle the "In-Care-Of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.

  3. A change in the "In-Care-Of" name can be determined by the following:

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

    If Then
    An "In-Care-Of" name is changed but there is no indication of an address change,
    1. Edit the "In-Care-Of" name as shown above.

    2. Continue editing the return.

    An "In-Care-Of" name is present and there is an indication of an address change,
    1. Edit the "In-Care-Of" name as shown above.

    2. Correct the address.

    3. Continue editing the return.

3.11.249.9.5  (01-01-2015)
Entity Perfection - Domestic Addresses

  1. Perfection of the address is necessary when the mailing address (Street or Post Office (PO) Box) is not easily identified.

    Exception:

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

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

  3. The procedures for perfection of addresses are as follows:

    If And Then
    The address contains information other than a street address or PO Box,   No perfection is necessary. ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed,   Edit the new address in the Entity section of the return.
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Mailing address information is the same and no location address is listed on Line 7 Take no action and continue processing.
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Mailing address information is different and/or a location address is listed on Line 7 Detach Form 8822 (or Form 8822-B) and route to Entity Control following local procedures.

    Note:

    Edit the new address to return before routing.

    Both a PO Box and street address are shown,   1. Notate "TC 014" in the upper left margin.
    2. Input TC 014.
    Two street addresses are shown,   1. Underline the second street address.
    2. Notate "TC 014" in the upper left margin.
    3. Input TC 014.
    One street address is shown, The taxpayer changed the address to a PO Box, 1. Notate "TC 014" in the upper left margin.
    2. Input TC 014.
    The city and state are not shown on the return but are shown on an attachment,   Edit the city and state in the Entity section of the return.
    The city and state are not shown on the return or an attachment,   1. Research using IDRS (e.g., Command Code (CC) INOLE) or local procedures.
    2. Edit the city and state in the Entity section of the return.

    Note:

    Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    The ZIP Code is missing or illegible, Is not available from the return or attachments, See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the ZIP Code.

    Note:

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

    Only the first three digits of the ZIP Code can be determined,   Edit "01" for the fourth and fifth digits.
    It is necessary to edit the street address,   See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for current Address/Street Abbreviations.
    The address contains information other than a street address or PO Box,   No perfection is necessary. ISRP will enter the complete address.
  4. Always circle the "In-Care-Of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) or the percent sign (%) when editing address information.

    Note:

    The "In-Care-Of" symbol is valid for the second name line, but not on the street address line.

  5. The U.S. Postal Service (USPS) established new address requirements for Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (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 conversion chart below:

    Address State Code Abbreviation ZIP Code
    APO/DPO/FPO AA 340XX
    APO/DPO/FPO AE 090XX - 098XX
    APO/DPO/FPO AP 962XX - 966XX

3.11.249.9.6  (01-01-2015)
Entity Perfection - Foreign Addresses

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

  2. Returns with APO, DPO, and FPO addresses are considered domestic addresses.

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

  4. 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.

    1. A two-character alpha code must be edited for the U.S. Possession/Territory name.

      U.S. Possession/Territory Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Northern Mariana Islands MH
      Marshall Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands VI
    2. A ZIP Code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP Code if one is not provided. See Exhibit 3.11.249-4, U.S. Possessions/Territories and ZIP Codes.

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

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

    2. Circle the foreign country and edit the country code preceded by a “/” and followed by “/$” (e.g., “/GM/$ is edited for Germany). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for official foreign country codes.

    3. A unique country code will be edited for returns filed with an address in Canada. See IRM 3.11.249.9.7Province and Country Code - Canada.

      Note:

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

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

      If Then
      A province, state, or territory name is present, 1. Circle the province, state, or territory name.
      2. Edit the appropriate abbreviation. See Exhibit 3.11.249-3, Province, State and Territory Abbreviations.
      A province, state, or territory is shown in abbreviated format, Continue editing the return.
      A province, state, or territory name is not present, Continue editing the return.
  6. A ZIP Code or state is not required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.

3.11.249.9.7  (01-01-2015)
Province and Country Code - Canada

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

    If Then
    The foreign address contains a Canadian Province/Territory name, or abbreviation shown in the table below, 1. See table below to ensure the correct Canadian Province/Territory is present or edited to the return.
    2. Circle the country name.
    3. Edit the appropriate country code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address.
    The foreign address does not contain a Canadian Province/Territory name or abbreviation shown in the table below, 1. Circle the country name.
    2. Edit the country code "/CA/$" as the last entry in the address.

    Canadian Province/Territory Abbreviations, Postal Codes and Canadian Country Codes Table

    Canadian Province/Territory Province/Territory Abbreviation Postal Code Beginning

    Note:

    If the Canadian Postal Code begins with one of the following, use the corresponding Foreign Country Code Abbreviation 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 I XQ
    Saskatchewan SK S XW
    Yukon YT Y XY
  2. The rest of the foreign address is edited using procedures in IRM 3.11.249.9.6, Entity Perfection - Foreign Addresses.

3.11.249.9.8  (01-01-2015)
Tax Period

  1. All returns must have a tax period. Edit the tax period under the title of the form in YYMM format. Determine the tax period by the year (printed) on the face of the tax form (e.g., for the 2014 tax form, the tax period should be "1412" ). Taxpayers are advised to edit changes on the form to the tax year for prior tax periods.

  2. Do not edit the tax period if the current year form is used unless the taxpayer indicates on the top of the return that this is not a current year return (e.g., shows a prior year). Programming automatically inserts the current year when there is no ISRP (Integrated Submission and Remittance Processing) entry (and verifies the correct tax rate was used on Line 9a). Generally, Form 8752 filers must be for a calendar year.

    Caution:

    Many taxpayers file Form 8752 early (right after the end of their fiscal year) and may use a prior year form. Be aware of the taxpayer writing in the tax period on the top of the form. Failure to do so, may result in Duplicate Filing Cases (DUPFS) in Accounts Management (AM).

  3. The tax period for all prior year returns must be edited. Edit the tax period under the title of the form in YYMM format.

    Example:

    If the election year ends September 30, 2014, the tax period is "1412," not "1409" .

  4. If a prior year form is submitted and the taxpayer does not indicate the tax period, edit "1312" under the title of the form, except when you receive multiple Forms 8752 from the same entity. See Figure 3.11.249-4, Editing of a Prior Year Form 8752.

    Figure 3.11.249-4

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  5. If multiple Forms 8752 from the same entity using the current year form are received, try to find out the correct tax period to edit. Look at the "applicable election year beginning and ending." Make the latest "ending period" the current calendar year and edit prior year tax periods in descending order as can be best determined. See Figure 3.11.249-5, Multiple Forms 8752 from Same Entity with Current Year Form.

  6. If a Form 8752 is received for a future tax period (e.g., if the tax period ending is after the current processing date), follow instructions below:

    1. Edit CCC "U" on the return.

    2. Attach Form 4227 (or other appropriate routing slip), check the box for Reject Correction (Rejects), and notate "Early Filed". Rejects will Research to determine the correct tax period.

    3. Continue processing.

      Note:

      If a remittance is attached, prepare Form 3244, Payment Posting Voucher, and route to Deposit Activity for processing and posting to the taxpayer's account.

    Figure 3.11.249-5

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3.11.249.9.9  (01-01-2015)
Centralized Authorization File (CAF) Indicator

  1. Editing of the Centralized Authorization File (CAF) code is no longer required.

  2. The CAF contains the type of authorization that taxpayers give to representatives regarding the taxpayers' accounts. Representatives may submit Form 2848, Power of Attorney (POA) and Declaration of Representative, or Form 8821, Tax Information Authorization (TIA).

    If Then
    Form 2848 or Form 8821 is attached, 1. Detach Form 2848 or Form 8821 from the return.
    2. Edit taxpayer name and EIN on Form 2848 or Form 8821 if missing.
    3. Edit received date on Form 2848 or Form 8821.
    4. Route Form 2848 or Form 8821 to the Centralized Authorization File (CAF) function.
    5. Edit an action/audit trail on tax return.
    A "General Power of Attorney" or a "Durable Power of Attorney" or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821, 1. Take no action.
    2. Leave the Power of Attorney or Tax Information Authorization attached to the return.
    3. Do not route to the CAF function.

3.11.249.10  (01-01-2015)
Received Date

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

  2. A received date is required on every Form 8752, Required Payment or Refund Under Section 7519. The due date for Form 8752 is May 15 of the year following the calendar year in which the applicable election year begins.

    If And Then
    The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,   The return is considered timely.
    The due date falls on a weekend or legal holiday,   The return is timely if postmarked by the first business day following the weekend or legal holiday.
    The IRS Received Date stamp is after ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the legal or extended due date, The postmark date or shipment date is on or before the legal or extended due date, Edit the received date to agree with the postmark date or shipment date.

    Caution:

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


    Note:

    For certified mail only - If a postmark is not present, look for an “USPS.com Track & Confirm” record that has been attached to the return (should be before the envelope). Use the “Acceptance” date on the record to determine timeliness and follow normal editing procedures. See Exhibit 3.11.249-5, USPS.com Track & Confirm.
    If the “USPS.com Track & Confirm” record is not attached, no action is required.

    Note:

    All Forms 8752 with a timely postmark date are considered timely filed, no matter when they are received.

  3. The received date may or may not be stamped on the face of the return.

  4. A valid Received Date Stamp may consist of the following:

    • The word "Received"

    • Month (alpha or numeric)

    • Day (e.g., "1" or "01" )

    • Year (four digits)

    • "Area Office," Campus, "Field Office," "Taxpayer Assistance Center (TAC)" plus the city, location or functional area within one of these sites (e.g., CSCO, Exam, ICT, CIS, AM, etc.).

      Note:

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

  5. If the received date stamp is not present, or the date is illegible or invalid, edit the received date, in YYYYMMDD format, in the middle of the first page of the return (in the area between Lines 1 and 6). Edit the received date according to the following priority:

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

      If Then
      An envelope is not attached, Use the postmark date stamped on the face of the return.

      Note:

      When there are multiple returns in one envelope, the envelope is attached to one return and the postmark date is stamped on the other returns.

      The postmark is missing and the envelope is certified, Look for the “USPS.com Track & Confirm” record that has been attached to the return (should be before the envelope). Use the “Acceptance” date on the record to determine timeliness and follow normal editing procedures. See Exhibit 3.11.249-5, USPS.com Track & Confirm.
      If the “USPS.com Track & Confirm” record is not attached, no action is required.
      An envelope has both a USPS and private metered postmark, Always use the USPS postmark.
      An envelope has a foreign and private metered postmark, Use the foreign postmark.
      An envelope has two private metered postmarks, Always use the latest private postmark.
      An envelope has only one private metered postmark, Use the private metered postmark.
    2. Service Center Automated Mail Processing System (SCAMPS) Digital Date

    3. Revenue Officer’s or other IRS official's signature date

    4. Signature date, if within the current year (unless other information indicates signature date is invalid)

    5. Document Locator Number (DLN) Julian date minus 10 days

    6. Current date minus 10 days

  6. Edit the received date as follows:

    If Then
    A timely received date is the only received date stamped on the return, No editing is required.
    Two or more dates stamped on the return, 1. Use the earliest IRS stamped received date.
    2. Circle out all other dates (handwritten or stamped) not needed for transcription.

    Note:

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

    A Federal return is addressed to the IRS but delivered to a State agency, Use the postmark date as the received date.
    A Federal return is addressed to a State Agency, Use the IRS date stamp as the received date.
    The only received date on the return is a Taxpayer Advocate Service (TAS) or Chief Counsel received date, Circle out the TAS or Chief Counsel received date and edit the received date according to instructions.

    Reminder:

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

3.11.249.11  (01-01-2015)
Computer Condition Codes (CCCs)

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

  2. Edit the Computer Condition Code(s) in the upper left margin of the Form 8752.

3.11.249.11.1  (01-01-2015)
Computer Condition Code "F" - Final Return

  1. Edit CCC "F" when the taxpayer gives a positive indication that they are not liable for filing future returns. Notations such as (but not limited to) the following:

    1. Final

    2. Deceased

    3. Out-of-Business

    4. Liquidation

    5. Exempt under IRC 501(c)(3)

    6. Dissolved

    7. IRC Section 444 was terminated.

      Note:

      In cases regarding Form 8752, any references to a "terminating event" may also apply in determining whether this is a final return.

    Reminder:

    See IRM 3.11.249.14.3(9) for additional information when the taxpayer checked the box on Line C of Form 8752.

3.11.249.11.2  (01-01-2015)
Computer Condition Code "G" - Amended Return

  1. A return is considered Amended based on the following:

    • Words such as "Amended," "Supplemental," "Corrected," or "Additional" are present

    • Any indication from the taxpayer that a previous return was filed

    Note:

    Words such as "Copy" or "Duplicate" are not sufficient indicators and must be accompanied by a statement from the taxpayer that a previous return was filed.

    Caution:

    Form 8752 does not have an Amended box. Taxpayers are advised to file an amended Form 8752 and write "Amended Return" across the top to correct an error in a Form 8752 already filed.

  2. 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 may be useful to Accounts Management.

    • Detach any unrelated documents and route them to the appropriate function using Form 4227 (or other appropriate routing slip). Edit an action/audit trail on the return.

  3. Determine if CCC "G" should be edited:

    If And Then
    There is an indication the return is Amended, Form 3893, Re-Entry Document Control, is attached, Do not edit CCC "G" .
    Form 13596, Reprocessing Returns, is attached, Do not edit CCC "G" .
    None of the above are present, Edit CCC "G" . No other codes may be used with a CCC "G" , except "U" .

    Note:

    Computer Condition Code "3" (No Reply to Correspondence) or any of the Error Resolution System (ERS) Action Codes do not apply to Form 8752 processing.

  4. The following data must be edited on all Amended returns:

    1. Name control,

    2. EIN,

    3. Tax period,

    4. CCC "G" ,

    5. Received Date, and

    6. Signature.

  5. Do not edit CCC "G" if the taxpayer clearly indicates that the return is used to submit a subsequent payment or did not include the payment with the original return filed.

    1. Edit CCC "U" on the return.

    2. Prepare Form 4227 (or other appropriate routing slip) and notate on Form 4227, "Research - Missed or Subsequent Payment."

    3. Route to Rejects. They will research to determine if the original return was posted and if the payment was misapplied.

    Note:

    Do not correspond for any missing information.

3.11.249.11.3  (01-01-2015)
Computer Condition Code "O" - Manual Refund

  1. CCC "O" is entered when a Pre-Settlement Manual Refund was made and a Form 3753, Manual Refund Posting Voucher, Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, EIN, and tax period on the return is the same as the data on the form.

    1. If a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached to the return, verify that the Name Control, EIN, and tax period on the return is the same as the data on the form. Edit CCC "O" if the data is the same.

    2. If the data is not the same, refer the return and the attachment to your manager. The manager will send the return and the attached Form 3573, Form 5792, or Form 12857 back to the originating function.

3.11.249.11.4  (01-01-2015)
Computer Condition Code "U" - Unprocessable Return

  1. Unprocessable Return. Edit this code when the return is too incomplete or illegible for processing. When CCC "U" is edited, continue perfecting the return to the extent possible. See IRM 3.11.249.8, Unprocessable Procedures, for additional information.

  2. Edit CCC "U" on misblocked and non-ADP returns.

3.11.249.11.5  (01-01-2015)
Computer Condition Code "W" - Return Cleared by Statute

  1. Code and Edit is no longer required to edit Computer Condition Code (CCC) "W" .

  2. Statute of Limitations processing does not apply to Form 8752 because the form is considered a required deposit by the taxpayer and not a payment of tax due.

3.11.249.11.6  (01-01-2015)
Computer Condition Code "X" - Refund Freeze Code

  1. On no reply cases for a signature, edit CCC "X" on refund returns. This freezes the release of an overpayment (e.g., freezes the module from refunding or offsetting credit out) at Master File.

    Note:

    IMPORTANT: With other BMF returns, the "X" freeze may permit the Service to comply with the taxpayer's request to transfer a part of the refund applied to another account. This is NOT the case with Form 8752. By law, money held in the taxpayer's Form 8752 (escrow) account, or any money earmarked for that purpose, is not permitted to be transferred to another account. (It is, for this reason, that we are unable to comply with the official text recommendations made by the BMF Consistency Task Team.)

3.11.249.12  (01-01-2015)
Taxpayer Pre-computed Penalty and Interest (P/I) Code

  1. The pre-computed Penalty and Interest (P/I) Code is used when the taxpayer has paid an amount for penalty and/or interest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The P/I Code will allow the computer to compute penalty and/or interest when it normally would not.

  2. Edit Code "1" to the right of the Office of Management and Budget (OMB) number (upper-right corner) on Form 8752 when pre-computed delinquency penalty and/or interest is shown.

3.11.249.13  (01-01-2015)
Personal Service Corporations

  1. Personal Service Corporations (PSCs) are NOT required to file Form 8752. In the case of a PSC, such corporations must complete Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation, to figure the minimum distributions and the maximum deductible amount, if applicable.

    1. If the taxpayer clearly indicates on the return or attachment that they are a PSC, edit CCC "F" on the return and continue processing (unnumbered only).

    2. If a determination cannot be made, route the return for IDRS research using the appropriate command codes (e.g., Command Code (CC) BMFOL).

    Note:

    Other indications that the taxpayer is a PSC are found in the entity information. Some examples are business names which indicate professions in the area of health (e.g., "Dr." present in entity), law, engineering, architecture, accounting (e.g., "Certified Public Accountant (CPA)" present in entity), actuarial science, performing arts, or consulting.

  2. If any of the above occupations are listed, route the return for IDRS research.

  3. If research verifies that the taxpayer is a PSC (Tax Class 6, MFT 02, and Document Code 11, Filing Requirement 19 and TC 054 is present), take the following action:

    If Then
    Numbered Return,
    1. Edit CCC "U" on the return.

    2. Route to Reject Correction following local procedures (e.g., Attach Form 4227 (or other appropriate routing slip) and check box for Reject Correction).

    3. Notate on Form 4227 "PSC not required to file Form 8752 per Internal Revenue Code (IRC) 444(c)(2)."

    4. Leave return in batch.

    Unnumbered Return,
    1. Edit CCC "F" on the return and continue processing the return.

    2. Notify the taxpayer (e.g., Correspondence Action Sheet (CAS) Letter 3064C, or local procedure), only if they have not notated on the return or attachment that they are a Personal Service Corporation (PSC), they are not required to file Form 8752.

    Note:

    A reply from the taxpayer is not necessary. Also, do not send the return back.

  4. If research verifies that the taxpayer is not a PSC, continue processing the return.

3.11.249.14  (01-01-2015)
Perfecting Data on Form 8752

  1. This section provides instructions for perfecting the money amounts, deferral ratios, and other numerical data to be transcribed from Form 8752. See Exhibit 3.11.249-1, Transcription Lines for Form 8752, Required Payment or Refund under Section 7519, for transcription lines (T lines).

  2. The Form 8752 is used to remit the required payment. The required payment is intended to represent the value of the tax deferral by the owners of those entities through the use of a taxable year other than the required year. The required payment is considered a deposit.

3.11.249.14.1  (01-01-2015)
Line 1 - Net Income for Base Year

  1. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.2  (01-01-2015)
Line 2 - Applicable Payment Made During Base Year

  1. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.3  (01-01-2015)
Line 3 - Base Year Deferral Ratio

  1. Edit a three-digit code (Deferral Ratio) for the allowable deferral percentage on the dotted portion of Line 3 (to the left of the taxpayer’s entry). There are eleven codes. These codes represent deferrals of one to eleven months (e.g., with "083" representing a deferral of one month and "917" for a deferral of eleven months, respectively) and are shown in the chart below, which assumes that the taxpayer’s required year is the calendar year.

    Note:

    Do not put a decimal in front of the deferral ratio number.

    Ending Month of
    Elected Tax Year
    Deferral Period
    (Number of Months)
    Deferral Ratio
    (Three-Digit Code)
    November 1 083
    October 2 167
    September 3 250
    August 4 333
    July 5 417
    June 6 500
    May 7 583
    April 8 667
    March 9 750
    February 10 833
    January 11 917

    Note:

    Do not "X" the taxpayer's entry on Line 3. Integrated Submission and Remittance Processing (ISRP) should pick up the three-digit code edited on the dotted portion of Line 3.

  2. The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer’s deferral period. The "Deferral Period" means the number of months that occur between the last day of the elected tax year and the last day of the required tax year.

    For example, if the taxpayer elected a tax year ending on September 30 and his/her required tax year is the calendar year, the deferral period would be three months (the number of months between September 30 and December 31). If the deferral period is three months, edit "250" as the deferral ratio.

    Using the same example (e.g., if the required tax year is the calendar year), the deferral period would be two months for an elected tax year ending in October, while the deferral period would be one month for an elected tax year ending in November. (Edit "167" for the deferral ratio for a deferral period of two months. For a deferral period of one month, edit "083" .)

    Note:

    By law (Tax Reform Act of 1986), the "required" tax year for S Corporations and partnership entities generally is a calendar year. Statutes may dictate otherwise in circumstances permitting the taxpayer to file fiscal year returns for a legally acceptable business purpose.

  3. Generally, the deferral percentage will not exceed 25%. However, entities with taxable years for 1986 and prior to make the IRC Section 444 elections can retain that taxable year even if the deferral period was more than three months. If the taxpayer claims an amount greater than 25%, but less than 91.7%, accept taxpayer’s amount. If the taxpayer claims more than 91.7%, allow only 91.7%.

    Note:

    Before you lower the rate, multiply Line 1 by the amount shown on Line 3 to make sure the taxpayer actually used that rate. For instance, if a taxpayer put $1,000 on Line 1 and 83% (percent) on Line 3, but came up with an amount of $83.00, he/she did not multiply by 83%, but rather, 8.3%. In this case, you would edit "083" .

  4. The taxpayer may either round the percentage (e.g., put down 8% or 17% or 67%, rather than 8.3% or 16.7% or 66.67%), or carry the percentage to multiple places (8.33% or 16.67% or 66.67%). In either case, you will enter "083" or "167" or "667" .

  5. If the taxpayer enters a percentage that does not approximate the allowable percentages, enter the acceptable code that is:

    1. Lower than the percentage claimed, and

    2. Closest to the percentage claimed (see example below).

      Example:

      If the taxpayer put down 12%, edit "083" . If the taxpayer put down 21%, edit "167" .

    3. If the taxpayer puts down an amount on Line 3 that is less than 8% (percent), correspond using appropriate letter (e.g., Letter 3463C, Letter 3064C, etc.) to ask what his/her deferral period is. Edit the appropriate code based on the taxpayer’s response. If there is no response, enter "083" .

    Exception:

    Edit lowest percentage of "083" when taxpayer enters "0" (zero), dash (-), none, N/A, or leaves blank. See instructions in (6), below.

  6. If the taxpayer shows a deferral ratio in the form of a decimal rather than a percentage, convert to a percentage.

    1. Example 1: If the taxpayer enters .17 as the deferral ratio, edit code "167" .

    2. Example 2: If the taxpayer enters .08 as the deferral ratio, edit code "083" .

  7. If the deferral ratio and/or deferral period (Line 3) cannot be determined from the information provided on the return and/or attachments (e.g., Line 4 amount divided by Line 1 amount equals Line 3), then correspond using appropriate letter. Enter the appropriate code based on the taxpayer's response. If there is no response, enter "083" .

  8. If the taxpayer checked the box on Line B (which reads, If this is the entity’s first tax year, skip lines 1 through 10, enter -0- on line 11, and check this box), then no editing of an entry to the left on Line 3 is necessary. (Line B is the second line item located immediately beneath the entity portion of Form 8752.)

  9. If the taxpayer checked the box on Line C (which reads, If this form is being filed to claim a full refund of the net required payment balance because of a terminating event, skip lines 1 through 9a, enter -0- on line 9b, complete lines 10 - 12, and check this box), then no editing of an entry to the left of Line 3 is necessary. (Line C is the third line item located immediately beneath the entity portion of Form 8752.)

3.11.249.14.4  (01-01-2015)
Line 4 - Line 1 Deferred Amount

  1. This line is the result of multiplying Lines 1 and 3. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.5  (01-01-2015)
Line 5 - Line 2 Deferred Amount

  1. This line is the result of multiplying Lines 2 and 3. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.6  (01-01-2015)
Line 6 - Applicable Payments Made During the Deferral Period of the Base Year

  1. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.7  (01-01-2015)
Line 7 - If the Entity had a 12-Month Base Year …

  1. This line can be the result of:

    1. Subtracting Line 6 from Line 5, or

    2. In the case of a short base year, the taxpayer enters an amount based on the applicable payments made during the deferral period of the applicable election year.

  2. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.8  (01-01-2015)
Line 8 - Net Base Year Income

  1. This line can be the result of:

    1. Adding lines 4 and 7, or

    2. In the case of a short base year, subtracting Line 7 from Line 4.

  2. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.9  (01-01-2015)
Line 9a - Calculation of Required Payment

  1. This line is the result of multiplying Line 8 by the applicable tax rate. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.10  (01-01-2015)
Line 9b - Required Payment

  1. This line will be either the amount shown on Line 9a or $0, which is the result of multiplying Line 8 by the applicable tax rate.

  2. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

  3. The required payment is intended to represent the value of the tax deferral by the owners of those entities through the use of a taxable year other than the required year. Generally, the tax year is a Fiscal Year (FY) ending in September, October, or November. The required payment is considered a deposit.

3.11.249.14.11  (01-01-2015)
Line 10 - Net Required Payment Balance

  1. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

3.11.249.14.12  (01-01-2015)
Line 11 - Required Payment Due

  1. There will be an amount on this line when Line 9b is greater than Line 10.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line and/or place the amount on the correct line.

3.11.249.14.13  (01-01-2015)
Line 12 - Refund Payments

  1. There will be an amount on this line when Line 10 is greater than Line 9b.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line and/or place the amount on the correct line.

  3. Refunds of $10 million or more:

    1. If line 12 is $10 million or more, use Computer Condition Code "U" and route to Rejects with Form 4227 (or other appropriate routing slip).

    2. Notate "Manual Refund" on Form 4227 (or other appropriate routing slip).

  4. If Line 12 is $10 million or more and Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, is attached, follow the instructions in a. above. Do not detach Form 8302.

  5. Credit interest will not generate on any Form 8752 refund of any amount at any time. Per Treasury Regulation 1.7519-2T(a)(6)(iii), interest is not allowed with respect to any refund of a required payment claimed on Form 8752. Credit interest cannot be input under any circumstance, including where IRS actions have delayed the issuance of the refund.

  6. A manual refund on a Form 8752 will only be done if the refund is for $10 million or more.

  7. The 45 Day Jeopardy rules do not apply to Form 8752.

3.11.249.14.14  (01-01-2015)
Transfer of Credits

  1. Special to prior year returns - If the taxpayer files prior year returns and the payment(s) posts to one Form 8752 tax period module, initiate Accounts Management action to move the money to the correct tax period(s):

    1. Prepare Form 3465, Adjustments Request.

    2. Notate on the Form 3465 (under "Other" ) that the taxpayer filed a prior year return(s) and the payment(s) for the return(s) must be credited to the correct tax period(s).

    3. Attach a photocopy of the return(s) to the Form 3465 and route to Accounts Management for the appropriate action.

    Note:

    We realize these procedures can be followed by Document Perfection only if the taxpayer makes a notation on the form regarding these circumstances.

  2. Do not move money to another type of tax module (e.g., Form 1120S).

3.11.249.15  (01-01-2015)
Special Returns

  1. This section contains information in regards to statute returns, amended returns, non-taxable returns with no line entries, foreign returns, and secured returns.

3.11.249.15.1  (01-01-2015)
Statute Returns

  1. Statute of Limitations processing does not apply to Form 8752 because the form is considered a required deposit by the taxpayer and not a payment of tax due.

3.11.249.15.2  (01-01-2015)
Amended Returns

  1. See IRM 3.11.249.11.2, Computer Condition Code "G" - Amended Return, for instructions for processing amended Form 8752.

3.11.249.15.3  (01-01-2015)
Non-Taxable Returns With No Line Entries

  1. Non-taxable returns with no line entries usually involve the following returns:

    1. First tax year Form 8752, where form instructions advise the taxpayer to check the box on Line B, skip Lines 1 through 10, and enter "0" (zero) on Line 11.

    2. Final tax year Form 8752, where the taxpayer files to claim a full refund of the net required payment balance because of a terminating event (e.g., election filed under IRC Section 444 was terminated). Form instructions advise the taxpayer to check the box on Line C, skip Lines 1 through 9a, enter "0" (zero) on Line 9b, and complete the rest of the form.

3.11.249.15.4  (01-01-2015)
Foreign Returns

  1. If the return has an address outside of the 50 states and the District of Columbia (APO, DPO or FPO address is not considered foreign), follow the procedures below.

    Note:

    The following three paragraphs apply to Cincinnati Submission Processing Campus (CSPC) only.

    1. If numbered return, edit CCC "U" on the return.

    2. Prepare Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip) and indicate that a Letter 86C should be prepared and the return sent to the Ogden Submission Processing Campus (OSPC).

    3. If unnumbered return, route the return to the Correspondence function for transmittal to OSPC.

    4. If the return is not date stamped, see IRM 3.11.249.10, Received Date.

3.11.249.15.5  (01-01-2015)
Secured Returns

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

    • Collection returns (e.g., Transaction Code (TC) 59X or Integrated Collection System (ICS) notated on the face of the return) do not apply to Form 8752.

    • Compliance (IRC 6020(b)) returns do not apply to Form 8752.

    • Substitute For Return (SFR) prepared by Examination (indicated in the top margin of the return) do not apply to Form 8752.

    Note:

    Collection and/or Examination will not prepare (nor perform follow-up action regarding) any of these returns.

Exhibit 3.11.249-1 
Transcription Lines for Form 8752, Required Payment or Refund under Section 7519

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Exhibit 3.11.249-2 
Potential Frivolous 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:
  1. 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.

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

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

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

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 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 Code of Federal Regulations (CFR) Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee’s wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes.
IRS is a Private Organization/Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" .
Not a Person Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14).
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. vs. 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-Introduction 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 3.11.249-3 
Province, State and Territory Abbreviations

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

Note:

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

Abbreviation
Alberta T AB
British Columbia V BC
Manitoba R MB
New Brunswick E NB
Newfoundland and Labrador A NL
Northwest Territories X NT
Nova Scotia B NS
Nunavut X NU
Ontario K, L, M, N, or P ON
Prince Edward Island C PE
Quebec G, H, or J QC
Saskatchewan S SK
Yukon Y YT
Cuba Provincias Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad de La Habana CH
Granma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matanzas 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
Ravenna RA
Reggio de Calabria RC
Reggio 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 3.11.249-4 
U.S. Possessions/Territories and 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)
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 3.11.249-5 
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