3.12.3  Individual Income Tax Returns

Manual Transmittal

November 12, 2013

Purpose

(1) This transmits revised IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Material Changes

(1) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.77.10.6(10) - Added 252, EC 290.

(2) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.1.3(9) - Deleted TPNC 626, EC 340.

(3) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.1.3(15) a - Updated to include Form 8839 Adoption Credit, EC 340.

(4) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.1.3(15) d - Deleted TPNC 626, EC 340.

(5) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.4 - Added TY10 and TY11, EC 345.

(6) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.4.1 - Displayed Fields, changed 0571B to 05RAD, EC 345.

(7) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.4.2(1) a - Invalid Conditions, added 201112, EC 345.

(8) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.4.2(1) c - Invalid Conditions, changed 0571B to 05RAD and changed 0571B> to >>>>>, EC 345.

(9) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.4.3(6) - Changed 0571B to 05RAD, EC 345.

(10) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.4.6(1) C] and D], Then column - Changed 0571B to 05RAD, EC 345.

(11) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.6.1 - Fields Displayed, changed 0571B to 05RAD and under Field Name added TY10 and TY11, EC 348.

(12) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.6.3(1) 2nd bullet - Added TY10 and TY11, EC 348.

(13) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.6.5 - Added TY11, EC 348.

(14) IPU 13U1551 issued 10-22-2013 IRM 3.12.3.81.6.5(2) - Changed 0571B to 05RAD, EC 348.

(15) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.38.4.1(3) - Corrected coding Form 8812 when Yes and No box checked, Section 47.

(16) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.46.5(1), (3) and (4) - Update to include PY only, valid length and characters, Field 58ADD.

(17) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.49.2 - Added instructions to correspond for missing first name, Field 63SPF.

(18) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.49.3 - Added instructions to correspond for missing last name, Field 63SPL.

(19) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.49.4 - Added instructions to correspond for missing TIN, Field 63SPN.

(20) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.55.4.14 - Updated line numbers for Field 7027, Section 70.

(21) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.57.1.3(2) Note - Removed instruction for Field 02CEV, EC 010.

(22) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.62.5.3(5) B] Then (2) - Changed $50.00 to $50, EC 078.

(23) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.62.5.3(5) C] Then - Changed $50.00 to $50, EC 078.

(24) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.74.5.3(5) D] and E] - Updated line numbers, EC 242.

(25) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.77.6.4(16) b - Deleted instruction to enter SPC D, EC 284.

(26) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.77.9.3(6) and (7) - Added RPC O, EC 288.

(27) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.77.10.6(8), (9), (10) and (11) - Deleted TPNC 626, EC 290.

(28) IPU 13U1497 issued 09-23-2013 IRM 3.12.3.78.1.1 - Updated screen display, EC 301.

(29) IPU 13U1497 issued 09-23-2013 Exhibit 3.12.3-1 - Added no reply instructions Form 8941, Number of Employees, No Reply.

(30) IPU 13U1414 issued 08-30-2013 IRM 3.12.3.73.3.17(2) - Corrected link reference, EC 518.

(31) IPU 13U1414 issued 08-30-2013 IRM 3.12.3.73.11.5(2) - Corrected link reference, EC 530.

(32) IPU 13U1414 issued 08-30-2013 IRM 3.12.3.75.4.3(1)(2)(3) - Updated line numbers for TY12, EC 259.

(33) IPU 13U1414 issued 08-30-2013 IRM 3.12.3.75.4.4 - Added new Prior Year Correction Procedures, EC 259.

(34) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.4.3.4(4) - Added "if required" , Field 01SS.

(35) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.58.7.3.1(5) - Removed "t" , EC 028.

(36) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.58.8.3(9) - Added "refund" , EC 029.

(37) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.58.8.5(2) - Added instructions to use Clear Field, EC 029.

(38) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.75.1.27(4) F] - Updated instructions, EC 252.

(39) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.79.10.3(4) - Added "appears to qualify for EIC" , EC 336.

(40) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.79.11.3(8) - Added "appears to qualify for EIC" , EC 338.

(41) IPU 13U1289 issued 07-29-2013 IRM 3.12.3.81.6.6(4) - Added (4) for Form 8801, EC 348.

(42) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.4.3.4(4) - Added new (4) for rejected ITIN for secondary taxpayer.

(43) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.58.7.3.1(5)(6) - Updated Form 14039 instructions, EC 028.

(44) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.66.8.3 - Added (2) for FSC 2 and only one Form 5405, EC 128.

(45) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.74.7.4(5) h Note - Changed (4) to (5), EC 246.

(46) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.75.1.10(4) F] - Changed spouse instructions, EC 252.

(47) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.75.1.27(4) F] - Changed spouse instructions, EC 252.

(48) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.76.2.5(6) A] and B] - Updated A and B, EC 268.

(49) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.77.10.6(8)(9)(10)(11) - Added TPNC 626, EC 290.

(50) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.77.10.9(2) - Added TPNC 626, EC 290.

(51) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.79.7.17(2) - Added TPNC 626, EC 330.

(52) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.79.10.8(6) - Added TY12, EC 336.

(53) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.1.3(9) - Added TPNC 626, EC 340.

(54) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.1.3(15) d- Added TPNC 626, EC 340.

(55) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.1.7(1) - Corrected word to transcribed, EC 340.

(56) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.1.11(6) - Updated instructions for ineligible children or math errors, EC 340.

(57) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.1.12(2) - Added TPNC 626, EC 340.

(58) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.8.4(9) a - Corrected word to underprint, EC 350.

(59) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.8.13(2) - Added TPNC 626, EC 350.

(60) IPU 13U1260 issued 07-19-2013 IRM 3.12.3.81.11.12(2) - Added TPNC 626, EC 360.

(61) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.40.4.5(3) - Corrected verbiage, Field 50FN1.

(62) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.58.7.3 - Added (2) for FSC 3, EC 028.

(63) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.58.8.4(4) - Corrected verbiage, EC 029.

(64) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.58.8.4(5) - Changed "was misapplied" to "do not belong to the taxpayer" , EC 029.

(65) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.58.8.4(5) b) and c) - Changed $100 to $500, EC 029.

(66) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.63.5.3(8) - Changed (10) to (9), EC 088.

(67) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.66.8.3(3) 3rd bullet - Updated field numbers, EC 128.

(68) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.66.8.6(3) c - Updated field number, EC 128.

(69) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.74.2.3(4) Caution - Deleted the word that, EC 236.

(70) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.74.3.3(6) B] Caution - Deleted the word that, EC 238.

(71) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.75.1.23(6) - Corrected verbiage to match 1040 instructions, EC 252.

(72) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.79.7.10 - Added new (7) for FSC 2 and deceased taxpayer, EC 330.

(73) IPU 13U1233 issued 07-15-2013 IRM 3.12.3.82.2.3(4) - Corrected IRM reference, EC 370.

(74) IPU 13U1233 issued 07-15-2013 Exhibit 3.12.3-1 - Added to line 53c instructions for Field 6501B/6601B, No Reply.

(75) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.2.9.1(1) - Added paragraph E, Second Correspondence.

(76) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.3 - Added Multiple Fliers and ITIN to list, Special Procedures.

(77) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.3.21 - Changed in to on, Multiple Fliers.

(78) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.40.4.5 - Added (3) for less than nine numbers, Section 50.

(79) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.58.8.4(4) - Added new instructions for research, EC 029.

(80) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.74.2.3(4) - Added Caution, EC 236.

(81) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.74.3.3(6) - Updated instructions for negative amount, EC 238.

(82) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.75.1.6(6)(7) - Updated ABI instructions, EC 252.

(83) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.75.1.23(6) - Updated ABI instructions, EC 252.

(84) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.76.1.7(7) A - Changed transcribed to transferred, EC 265.

(85) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.77.9.3(6) a - Changed (6) to (7), EC 288.

(86) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.81.2.4 - Added new Prior Year procedures, EC 342.

(87) IPU 13U1198 issued 07-09-2013 IRM 3.12.3.84.3(1) h - Added paragraph E, Second Correspondence.

(88) IPU 13U1198 issued 07-09-2013 Exhibit 3.12.3-1(8) - Added paragraph E, No Reply.

(89) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.2.10.3(3) NOTE - Changed Action Code 490 to 630, Priority III Errors.

(90) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.2.9.1(1) h - Added paragraph 8, Second Correspondence.

(91) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.3.21(2) - Added a, b, and c, Multiple Fliers.

(92) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.4.3.5(5) - Added examples of both taxpayers deceased, First Name Line.

(93) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.5.8.2 A - Corrected dated, Field 0206.

(94) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.58.8.3(2) - Added TC 670, EC 029.

(95) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.58.8.3(9) - Added new (9), EC 029.

(96) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.58.8.4 - Added (3), payment posted on wrong tax period, EC 029.

(97) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.63.7.3(1) - Added TY12, EC 090.

(98) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.66.2.7 - Added new subsection, Reply to Correspondence, EC 118.

(99) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.66.3.3(6) - Moved Exception from (9) to (6), EC 121.

(100) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.68.3.3(2) - Added TY12 and amount, EC 162.

(101) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.73.1.4(3) - Added new (3) for negative amount, EC 214.

(102) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.73.7.3(4) - Added Form 1098–T and Form 1040A instructions, EC 225.

(103) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.73.10.13(1) d - Added TY12, EC 228.

(104) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.73.10.18(6) - Switched (5) and (6), EC 228.

(105) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.74.7.9(3) - Added TY09 and TY08, EC 246.

(106) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.75.5.3(3) - Added 1040A instructions, EC 260.

(107) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.75.5.11.1(3) b - Changed zero to nine, EC 260.

(108) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.6.3(10) - Updated to read like EC 342, EC 284.

(109) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.6.4(7) - Added new (7) for AOC, EC 284.

(110) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.6.4(14) - Added new (14) for TY11 and TY10, EC 284.

(111) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.6.7(1) - Updated to TY09. EC 284.

(112) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.9.3(6) - Deleted from (5), (d) and (e) and moved to new (6), EC 288.

(113) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.10.6(6) a - Changed 1995 to 1996, EC 290.

(114) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.77.17.3(3) G - Changed 04ADC to 04OSC, EC 299.

(115) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.78.2.3(5) C and G - Updated year to 2013, EC 302.

(116) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.78.2.24(5) A Note - Corrected link, EC 302.

(117) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.78.6.5(2) - Added new (2) for Scholarships and Fellowships, EC 314.

(118) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.78.6.12(2) - Added new (2) for Scholarships and Fellowships, EC 314.

(119) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.6.4(2) - Changed line 1 to 2, EC 229.

(120) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.6.7(2) a and (3) a 5th bullet - Deleted and 01RCD.

(121) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.9.3(2) - Updated tax years, EC 332.

(122) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.10.4(2) Note - Changed 2011 to 2012, EC 336.

(123) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.10.5(4) - Updated years, EC 336.

(124) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.10.5(6) - Changed 12/31/2011 to 12/31/2012, EC 336.

(125) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.10.8(5) c - Added new paragraph c for Scholarships and Fellowships, EC 336.

(126) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.79.10.13(1) - Updated tax years, EC 336.

(127) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.81.1.3(10) - Updated date of birth, EC 336.

(128) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.81.1.3(11) - Updated date of death, EC 336.

(129) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.81.1.5(2) - Updated year of birth, EC 340.

(130) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.81.2.3(4) - Added new (4) for AOC, EC 342.

(131) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.81.8.4(6) b - Added TC 660, EC 350.

(132) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.82.2.3(4) - Added sentence to (4), EC 370.

(133) IPU 13U1170 issued 06-28-2013 IRM 3.12.3.84.3(1) h - Added paragraph 8, Second Correspondence.

(134) IPU 13U1170 issued 06-28-2013 Exhibit 3.12.3-1 - Added paragraph 8, No Reply.

(135) IPU 13U1170 issued 06-28-2013 Exhibit 3.12.3-1 - Changed zero to nine, Form 8958, No Reply.

(136) IPU 13U1170 issued 06-28-2013 Exhibit 3.12.3-11 - Added instructions for AUSPC, when Form W-7 is attached, Attachment Guide.

(137) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.2.9.1(1) - Added second correspondence instructions for Field Errors, Correspondence Procedures.

(138) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.3.4 - Changed AMTAP to IVO, Suspect Returns.

(139) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.3.20(1) d - Corrected link, Deceased Taxpayer.

(140) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.12.4(2) - Added TY12, Section 09 in 2nd bullet.

(141) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.12.4.8(1) - Added TY12 and TY10 and earlier, Section 09.

(142) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.40.4.8(1) - Added Note for same student, different educational institutions, Section 50.

(143) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.57.3.6(3) - Added new (3) for repeating or consecutive numbers, EC 012.

(144) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.57.3.6(2) - Added Note for MeF NAP validation, EC 012.

(145) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.58.8.4 - Added paragraphs (4), (5), and (6), EC 029.

(146) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.58.8.5(1) - Deleted Undeliverable instructions, EC 029.

(147) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.58.8.5(2) - Added new (2) for Undeliverable, EC 029.

(148) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.59.4.5(6)(7) - Updated Received Dates, EC 042.

(149) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.59.5.4(6) - Updated Received Date, EC 044.

(150) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.63.2.3(2) - Added "only" for Part I, EC 084.

(151) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.63.5.3(7) b - Corrected link, EC 088.

(152) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.63.7.4(1) - Added additional instructions to (1), EC 090.

(153) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.66.2.3(2) - Added instructions for TC 971 with AC 134, EC 118.

(154) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.66.2.4(1), (2), (3), and (4) - Changed AMTAP to IVO, EC 118.

(155) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.66.2.6(3) - Changed AMTAP to IVO, EC 118.

(156) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.66.3.3(5) - Corrected TY, EC 121.

(157) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.71.3.3(3) - Added instructions for greater than zero, EC 197.

(158) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.73.3.15(10) a) - Added TPNC 166, EC 218.

(159) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.75.1.17(2) - Added new instructions for repeating or consecutive numbers, EC 252.

(160) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.75.1.23(12) - Corrected links, EC 252.

(161) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.75.1.41(1) - Changed TY to 09, EC 252.

(162) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.75.3.3(7) b) - Added TY12, EC 258.

(163) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.75.3.5(1) B] - Added TY12, EC 258.

(164) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.75.5.5(1) - Updated tax periods, EC 260.

(165) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.76.1.15(1) - Updated link, EC 565.

(166) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.76.3.3(5) - Added new (d), EC 270.

(167) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.77.6.1(1) - Updated Screen display, EC 284.

(168) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.77.6.3 - Removed double numbers on paragraphs, EC 284.

(169) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.77.6.3(3) - Added Note for same student, different educational institutions, EC 284.

(170) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.77.11.3(6) - Added instructions for missing page, EC 291

(171) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.77.17.3(3) - Added new paragraph G, form G is H, EC 299.

(172) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.79.1.3(2) - Added (2) including transferring instructions and TPNC 280, EC 320.

(173) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.79.11.3(2) - Added RPC O in 2nd bullet, EC 338.

(174) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.79.11.3(3) - Changed paragraph 1 to 2, EC 338.

(175) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.1.3(4) 11th bullet Caution - Added TY12 and corrected link, EC 340.

(176) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.2.1 - Updated Screen display, EC 342.

(177) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.2.3(1) - Added Note for same student, different educational institutions, EC 342.

(178) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.2.4(14) - Deleted the word "Hope" , TPNC 678, EC 342.

(179) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.4.3(2) - Added new (2) for TY12, EC 345.

(180) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.8.3(2) - Added Form 1040 in last sentence. Added new sentence for Form 1040A and Form 1040EZ, EC 350.

(181) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.81.11.10(1) - Corrected line, EC 360.

(182) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.82.2.3(4) 2nd Caution - Added TY12, EC 370.

(183) IPU 13U1131 issued 06-24-2013 IRM 3.12.3.84.3(1) - Added second correspondence instructions for Field Errors, Second Correspondence.

(184) IPU 13U1131 issued 06-24-2013 Exhibit 3.12.3-1 - Added second correspondence instructions for Field Errors, No Reply.

(185) IPU 13U1131 issued 06-24-2013 Exhibit 3.12.3-1 - Added TPNC 625, Form 8812, No Reply.

(186) IPU 13U1131 issued 06-24-2013 Exhibit 3.12.3-1 - Added no reply instructions, Form 8958, No Reply.

(187) IPU 13U1131 issued 06-24-2013 Exhibit 3.12.3-2 - Deleted the word "Hope" , TPNC 678.

(188) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.2.9.1(1) - Added paragraph "I" , Second Correspondence.

(189) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.3.4(4) - Added note concerning MeF and ELF returns, Special Procedures.

(190) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.57.4.3(3) (F) - Updated IRM link, EC 013.

(191) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.59.3.3(2) - Added new (2) and relettered remaining paragraphs, EC 038.

(192) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.63.5.3(4) - Added TY12 instructions for STI. EC 088.

(193) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.73.8.3(3) - Updated instructions for line 13, Form 8889, EC 226.

(194) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.6.4(3) - Deleted "2" , EC 284.

(195) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.13.6(1) - Updated instructions to combine 04ADC and other credits claimed, EC 294.

(196) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.14.3(3) - Updated last sentence to include Exam review, EC 296.

(197) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.17.3(4)(C) - Updated line numbers for Form 8834, EC 299.

(198) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.17.3(4)(E) - Updated line numbers for Form 8910, EC 299.

(199) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.17.3(4)(G) - Updated line numbers for Form 8936, EC 299.

(200) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.18.4(3)(C) - Updated line numbers for Form 8834, EC 300.

(201) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.18.4(3)(E) - Updated line numbers for Form 8910, EC 300.

(202) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.77.18.4(3)(G) - Updated line numbers for Form 8936, EC 300.

(203) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.78.1.7 - Deleted No Reply moved to No Reply Procedures, EC 301.

(204) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.78.1.8 - Renumbered to IRM 3.12.3.78.1.7, EC 301.

(205) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.78.2.22(1) - Changed to read TY2011 and later, EC 302.

(206) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.78.2.3(5) (C) - Updated line numbers for Form 8934, EC 302.

(207) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.78.2.3(5) E] - Updated line numbers for Form 8910, EC 302.

(208) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.78.2.3(5) (G) - Updated line numbers for Form 8936, EC 302.

(209) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.79.1.3(2) - Updated to TY11 and later, EC 320.

(210) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.79.1.3(3)(C) and (D) - Updated for TY10 and earlier, EC 320.

(211) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.79.1.3(4)(B) - Updated amount to $1,800 for TY12, EC 320.

(212) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.79.1.3(4)(C) - Updated amount to $1,800 for TY12, EC 320.

(213) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.79.3.3(2) - Updated TY11 instructions, EC 324.

(214) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.79.10.7(10) - Added Investment Income amount for TY12, EC 336.

(215) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.81.2.4(2) - Added TPNC 284, EC 342.

(216) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.81.5.1 - Added Field 05FTH and computer underprint to screen display, EC 346.

(217) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.81.5.3(2) - Added instructions for Field 05FTH, EC 346.

(218) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.84.2(4) - Updated CCC U instructions, Suspense Procedures.

(219) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.84.3(1) - Added paragraph I, Suspense Procedures.

(220) IPU 13U1106 issued 06-18-2013 IRM 3.12.3.84.4(1) - Updated CCC U instructions, Suspense Procedures.

(221) IPU 13U1106 issued 06-18-2013 Exhibit 3.12.3-1 - Added paragraphs 8 and 9 (second correspondence), No Reply.

(222) IPU 13U1106 issued 06-18-2013 Exhibit 3.12.3-1 - Added instructions for Form 8941, No Reply.

(223) IPU 13U1106 issued 06-18-2013 Exhibit 3.12.3-7 - Added note to ACD X, Audit Codes.

(224) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.3.21. Added this new subsection, derived in part from Exhibit 3.12.3-1, with procedures for multiple filers. Special procedure.

(225) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.3.7(4) 4 and 5 - Updated Form 8857 procedures. Special Procedures.

(226) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.3.22 - Added this new sub-section, with procedures for returns submitted by taxpayers who file under an ITIN but attach income and withholding statements in the name and SSN of another person. Special Procedures.

(227) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.57.1.6(2)B] - Added that examiners enter the number of allowable exemptions for dependents without a TIN in field 02DTR. EC 010.

(228) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.58.8.3(2) - Corrected, in reversal of payments, TC 662 to 660 and added TC 663. EC 029.

(229) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.59.3.3(3) and (6) - Moved paragraph 6 into the space for paragraph 3 and renumbered the following paragraphs accordingly. EC 038.

(230) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.63.5.3(8) - Added that zero, however noted, is not a declaration of non-liability. EC 088.

(231) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.68.3.3(2)A] - Added minimum wage for TY12, $1,800. EC 162

(232) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.68.3.4(1) - Added minimum wage for TY12, $1,800. EC 162.

(233) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.72.6.3(2) - Changed the income cap for TY12 to $110,100. EC 209.

(234) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.72.8.4(1) - Added the calculation of the deduction for SE tax for TY12. EC 211.

(235) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.75.5.11 - Added text for correspondence for Form 8958. EC 260.

(236) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.75.5.11.1 - Added text for correspondence for Form 8958. EC 260.

(237) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.77.1.5(1) - Changed link to IRM 3.12.3.5.9. EC 574.

(238) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.77.6.3(6) - Added new paragraph 6, with instructions for denying the deduction for tuition and fees when the same student appears in Form 8917 and 8863. EC 284.

(239) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.77.6.5(12) - Updated line numbers, money amounts, and tax periods for Form 8863. IRM 3.12.3.77.6.7(3) d and e Added TY09. EC 284.

(240) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.77.17.3(4)C] - Replaced the in-service date 1/1/2012 with 1/1/2013. Form 8834. EC 299.

(241) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.78.2.24(5)B] - Added line numbers for Form 3800 for TY12 and TY11 and distinguished them from line numbers for TY10 and TY09. EC 302.

(242) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.79.6.6(3) - Removed disposition code C and D from B] and added procedures for them to new C]. EC 329.

(243) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.79.11.3(5) Second Bullet, Exception - Added additional instructions when correspondence is not to be sent. EC 338.

(244) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.79.11.7(8) - Changed TY08 to TY09. EC 338.

(245) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.81.1.3. - Changed "or" to "and" in column If in table in paragraph 8 and added procedures for figuring earned income when the taxpayer uses an optional method to figure SE tax. EC 340.

(246) IPU 13U1021 issued 05-31-2013 IRM 3.12.3.81.2.3(5) - Added new paragraph 5, with instructions for denying the deduction for tuition and fees when the same student appears in Form 8917 and 8863. EC 342.

(247) IPU 13U1021 issued 05-31-2013 Exhibit 3.12.3-1 - Deleted procedures for multiple taxpayers. No reply.

(248) IPU 13U0972 issued 05-21-2013 IRM 3.12.3.36.4.6 - Added an instruction for adding a leading zero to a single digit less than ten and entering 12 in place of any number greater than 12. Section 43.

(249) IPU 13U0972 issued 05-21-2013 IRM 3.12.3.59.3.3 - Added a caution to paragraph 2 that the physical-presence test doesn't apply to the ATIN. EC 038.

(250) IPU 13U0972 issued 05-21-2013 IRM 3.12.3.72.6.5 - Changed the applicable tax year for the procedure in paragraph 3 from TY12 to TY10. EC 209.

(251) IPU 13U0972 issued 05-21-2013 IRM 3.12.3.79.10.9 - Added instruction for SPC J. EC 336.

(252) IPU 13U0972 issued 05-21-2013 Exhibit 3.12.3-1. Added instruction for TPNC 625 for incomplete or missing Schedule 8812. No reply: 1040, line 51; 1040A, line 33.

(253) IPU 13U0972 issued 05-21-2013 Exhibit 3.12.3-1 - Changed threshold for Form 8283 to $501. No reply: Schedule A, line 17.

(254) IPU 13U0972 issued 05-21-2013 Exhibit 3.12.3-2 - Updated TPNCs.

(255) Exhibit 3.12.3-6 - Added special processing code J to the list; changed tax years for SPC Z and 7 to TY09 and later changed line number 12 to 1 and added line number for prior years. Special Processing Codes.

(256) IPU 13U0902 issued 05-09-2013 IRM 3.12.3.40.4.7 - Replaced instruction for requesting Form 8863 with instruction for requesting entries. Section 50.

(257) IPU 13U0902 issued 05-09-2013 IRM 3.12.3.40.4.8 - Replaced instruction for requesting Form 8863 with instruction for requesting entries. Section 50.

(258) IPU 13U0902 issued 05-09-2013. IRM 3.12.3.40.4.9 -Replaced instruction for requesting Form 8863 with instruction for requesting entries. Section 50.

(259) IPU 13U0902 issued 05-09-2013. IRM 3.12.3.40.4.10 - Replaced instruction for requesting Form 8863 with instruction for requesting entries. Section 50.

(260) IPU 13U0902 issued 05-09-2013. IRM 3.12.3.51.4.4 - Added instruction for corresponding for the number of full-time-equivalent employees. Section 65 and 66

(261) IPU 13U0902 issued 05-09-2013. IRM 3.12.3.63.5.3 - Restricted correspondence for Schedule C to the schedules with income from rental real estate. EC 088

(262) IPU 13U0902 issued 05-09-2013. IRM 3.12.3.82.2.3 - Added "sporadic activity" list of exemptions from SE tax. EC 370

(263) IPU 13U0882 issued 05-07-2013. IRM 3.12.3.51.3 - Added an instruction for deleting section 65 or 66 when an EIN is present in Form 3800. Section 65 and 66

(264) IPU 13U0882 issued 05-07-2013. IRM 3.12.3.58.8.4(2) - Added an instruction to send TPNC 558 after adding missing payments to the return. EC 029

(265) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.2.9.1 - Added the paragraph of Form 6001 to paragraph 1h. Correspondence Procedures, Second Correspondence

(266) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.40.4.7 - Added an instruction for corresponding for Form 8863 when question 23, 24, 25, or 26 is unanswered. Section 50

(267) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.40.4.8 - Added an instruction for corresponding for Form 8863 when question 23, 24, 25, or 26 is unanswered. Section 50

(268) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.40.4.9 - Added an instruction for corresponding for Form 8863 when question 23, 24, 25, or 26 is unanswered. Section 50

(269) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.40.4.10 - Added an instruction for corresponding for Form 8863 when question 23, 24, 25, or 26 is unanswered. Section 50

(270) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.63.5.3 - Moved paragraph 6 to paragraph 10 and shifted paragraph 7 to 10 up; added "sporadic activity" to list of exemptions. EC 088

(271) IPU 13U0869 issued 05-06-2013. IRM 3.12.3.84.3 - Added EC 028 to the list of reasons for second correspondence. Suspense Procedures, Second Correspondence

(272) IPU 13U0809 issued 04-25-2013. IRM 3.12.3.79.6.5 - Distinguished line numbers for TY 12 from those for TY11 and TY10. EC 329

(273) IPU 13U0809 issued 04-25-2013. Exhibit 3.12.3-1, No reply - Added instructions for Form 8958. Form 1040

(274) IPU 13U0793 issued 04-23-2013. IRM 3.12.3.79.6.1 - Revised field names. EC 329

(275) IPU 13U0793 issued 04-23-2013. IRM 3.12.3.79.6.4 - Revised line numbers and distinguished TY12 from TY11 and TY10. EC 329

(276) IPU 13U0793 issued 04-23-2013. Exhibit 3.12.3-1, No reply - Added the instruction that examiners enter the number of eligible children in field 02CEV. 1040: line 65; 1040A, line 40.

(277) IPU 13U0793 issued 04-23-2013. Exhibit 3.12.3-1, No reply - Added the condition that no student be eligible for the refundable AOC. 1040: line 66; 1040A: line 39

(278) IPU 13U0783 issued 04-22-2013. IRM 3.12.3.77.11.3 - Revised paragraph 8 and 9. EC 291

(279) IPU 13U0772 issued 04-19-2013 IRM 3.12.3.75.5.11.1 - Added instructions in paragraph 4 for corresponding because of missing or defective information in Form 8958 and touched up paragraph 6, describing the condition for the use of the procedure in the paragraph, adding a reference to Form 8958, recasting the instructions for evaluating the return and using RPC C, and explaining in the note the function and appropriate use of RPC C.

(280) IPU 13U0763 issued 04-18-2013. IRM 3.12.3.58.8.3 - Added a tolerance of $500 for credits to paragraph 7 and added new paragraph 8 with an instruction to clear the error code for payments under the tolerance. EC 029

(281) IPU 13U0763 issued 04-18-2013. IRM 3.12.3.58.8.4 - Changed the tolerance from $1 to $100 to the second bullet in paragraph one. EC 029

(282) IPU 13U0763 issued 04-18-2013. IRM 3.12.3.58.8.5 - Replaced instructions for rejecting the return and sending it to the alpha file with an instruction for CCC 3. EC 029

(283) IPU 13U0763 issued 04-18-2013. IRM 3.12.3.81.8.3 - Added a description of the assessed payment of the homebuyer credit that didn't stop at EC 330 and a referral to EC 329 for processing procedures for the returns. EC 350

(284) IPU 13U0763 issued 04-18-2013. Exhibit 3.12.3-2, No reply - Distinguished Form 8812 from Schedule 8812 by tax year and added TPNC 625 for TY12 and limited TPNC 592 to TY11 and before. Line 65 of Form 1040 and line 39 of Form 1040A

(285) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.2.2.2.4 - Added to paragraph 1 the condition that the signature must appear within the box Sign Here and deleted the note. Signature requirements

(286) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.3.5 - Expanded instructions for processing returns with an AGI of one billion dollars or more. Accounts over $999M.

(287) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.51.4.2 - Added an instructions for corresponding for missing number of employees. Section 65 & 66

(288) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.51.4.3 - Added an instructions for corresponding for missing EIN. Section 65 & 66

(289) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.73.2.3 - Added an instruction for referring the return to the lead examiner. EC 217

(290) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.77.11.3 - Revised paragraph 7 and corrected the TPNC 100 in paragraph 9. EC 291

(291) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.78.1.3 - Added to the conditions for correspondence in paragraph 3 that the EIN of the pass-through entity must be missing and distinguished line 1a and 1b for TY12 from line 1 for TY11 in instruction for correspondence. EC 301

(292) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.79.10.9 - Corrected the income threshold for single filing statuses in paragraph 2. EC 336

(293) IPU 13U0753 issued 04-17-2013. IRM 3.12.3.81.2.3 - Revised the line number, in paragraph 1, of Form 8863 that C&E strikes; deleted paragraph 3 and with it the instruction for SPC D and S; revised the line number for the declaration of ineligibility for the AOC in the new paragraph 3.

(294) IPU 13U0723 issued 04-11-2013. IRM 3.12.3.75.5.11.1(8)B] - Added a note concerning the requirement that registered domestic partners and California same-sex spouses must split income form self-employment for the purpose of paying self-employment tax. EC 260

(295) IPU 13U0723 issued 04-11-2013. IRM 3.12.3.79.10.8(6) - Added TY12 to the description of statutory employees in paragraph 6. EC 336

(296) IPU 13U0723 issued 04-11-2013. IRM 3.12.3.79.10.9(2) - Added the thresholds for AGI and earned income for TY12 to paragraph 2 and a note about SE tax for scholarships and fellowships and a referral to EC 209 to paragraph 6b. EC 336

(297) IPU 13U0713 issued 04-09-2013. IRM 3.12.3.57.1.5 - Added paragraph 7, with instructions for allowing the spousal exemption and filing status head of household. EC 010

(298) IPU 13U0713 issued 04-09-2013. IRM 3.12.3.58.8.3 - Added an instruction for returns with a non-joint filing status and deleted paragraph 7, replies, and 8, no and inadequate reply or undeliverable mail. EC 029

(299) IPU 13U0713 issued 04-09-2013. IRM 3.12.3.72.6.5(2) - Added new condition D], with instructions for taxpayers who pay SE tax for income excluded from gross income. EC 209

(300) IPU 13U0713 issued 04-09-2013. IRM 3.12.3.77.11.3 - Replaced TPNC 561 with TPNC 100 in paragraph 7, 8, and 9. EC 291

(301) IPU 13U0713 issued 04-09-2013. Exhibit 3.12.3-1, No reply - Removed the instruction for coding when taxpayer replies with Yes and No. Form 8863, line 49 and 66 of Form 1040 and line 34 and 40 of Form 1040A

(302) IPU 13U0697 issued 04-05-2013. IRM 3.12.3.73.10.21 - Deleted TPNC 146. EC 228

(303) IPU 13U0697 issued 04-05-2013. IRM 3.12.3.79.6.7 - Added this new subsection for returns unpostable because of the repayment of the First-Time Homebuyer Credit. EC 329

(304) IPU 13U0697 issued 04-05-2013. Exhibit 3.12.3-1, No reply - Added no-reply procedures for Form 8863 to Form 1040, line 49 and 66, and Form 1040A, line 31 and 40.

(305) IPU 13U0697 issued 04-05-2013. Exhibit 3.12.3-2, TPNCs - Deleted TPNC 146.

(306) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.7.4.24 - Added TY12 to range of valid years, removed restriction to prior years, and noted that the adoption credit was refundable only for TY11 and TY10.

(307) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.13.2 - Changed the reference for field 12DV to line 16 of Schedule D. Section 12

(308) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.55.4 - Removed the instruction for correspondence. Section 70

(309) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.55.4.12 - Removed the instruction for correspondence. Section 70

(310) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.55.4.13 - Removed the instruction for correspondence. Section 70

(311) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.55.4.14 - Removed the instruction for correspondence. Section 70

(312) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.58.6.3 - Added instructions for correspondence when income can't be verified. EC 027

(313) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.58.6.4 - Added a new subsection for replies to correspondence. EC 027

(314) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.58.6.5 - Added a new subsection for no replies to correspondence and undeliverable mail. EC 027

(315) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.58.8.3(2) - Added a list of reversals of payments and instructions for clearing the error code in case of full reversal of credits. EC 038

(316) IPU 13U0472 issued 03-07-2013. IRM 3.12.3.58.8.3(4) - Removed the instruction for moving the credit elect to field 0575 or 0537, replacing it with an instruction to add the credit to the ES payments in field 0563 or 0537. EC 029

(317) IPU 13U0472 issued 03-07-2013 IRM 3.12.3.59.2.3(2)B] and C] - Added an instruction for changing filing status code for head of household when dependent TINs are invalid. EC 034

(318) IRM 3.12.3.59.3.3(2) - Corrected field 01CEV to 02CEV. EC 038

(319) IRM 3.12.3.77.6.3 - Revised much of the subsection for tax year 2012, providing new line numbers and field names and a description of eligibility for the AOC. EC 284

(320) IPU 13U0472 issued 03-07-2013 IRM 3.12.3.77.6.4 - Revised much of the subsection for tax year 2012, providing new line numbers and field names. EC 284

(321) IPU 13U0472 issued 03-07-2013 IRM 3.12.3.77.10.6(3) - Added the condition that Schedule 8812 not be present. EC 290

(322) IPU 13U0472 issued 03-07-2013 IRM 3.12.3.79.6.6(2) - Removed all reference to the underprint for field 0459B replacing it with an instruction for confirmation of the FTHBC. EC 329

(323) IPU 13U0472 issued 03-07-2013 IRM 3.12.3.81.1.6(5) - Added the condition that Schedule 8812 not be present. EC 340

(324) IPU 13U0472 issued 03-07-2013 Exhibit 3.12.3-4, Computer Condition Codes - Added CCC I, used to flag that Form 8886 is attached to a return.

(325) IPU 13U0472 issued 03-07-2013 Exhibit 3.12.3-6, Special processing codes - Added a function for SPC Q, for Form 8867 for TY12.

(326) IPU 13U0472 issued 03-07-2013 Exhibit 3.12.3-7, Audit codes - Removed Form 8886 from audit code K.

(327) IPU 13U0310 issued 02-07-2013. IRM 3.12.3.77.10.6(3) - Added an instruction to enter 00 in field 02CEV when taxpayers check the box for CTC for dependents with an ITIN but don't take the credit. EC 290

(328) IPU 13U0310 issued 02-07-2013. IRM 3.12.3.77.17.3(3)F] - Added TY12 to the tax years for which Form 8839 is required for the non-refundable adoption credit. EC 299

(329) IPU 13U0310 issued 02-07-2013. IRM 3.12.3.77.17.3(4)G] -Changed the unacceptable in-service date for Form 8834 and in the TPNC 100 to 1/1/2013. EC 299

(330) IPU 13U0310 issued 02-07-2013. IRM 3.12.3.81.1.6(5) - Added an instruction to enter 00 in field 02CEV when taxpayers check the box for CTC for dependents with an ITIN but don't take the credit. EC 340

(331) IPU 13U0310 issued 02-07-2013. IRM 3.12.3.77.18.4(4)3G] -Changed the unacceptable in-service date for Form 8936 and the TPNC 100 to 1/1/2013. EC 300

(332) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.4.3.20 - Changed received date in paragraph 12E] for a rejected electronic return to 20130415. Section 01

(333) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.10.4.27 - Revised tax years when the limitation of itemized deductions was in effect. Section 17

(334) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.13 - Changed tax years for use of Form 8949 to TY11 and later. Section 12

(335) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.15.1 - Changed field 1411 to 1409 and 1451 to 1450. Section 14 and 15

(336) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.17 - Added $110,100 for TY12 to paragraph 3 and 5. Section 17 and 18

(337) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.55.4 - Added a general instruction for corresponding for Form 8867 when a paid preparer has not answered questions. Section 70

(338) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.55.4.12 - Restricted the instruction for correspondence for field 7026A to Forms 8867 incomplete only because of the omission at line 26.

(339) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.55.4.13 - Restricted the instruction for correspondence for field 7026B to Forms 8867 incomplete only because of the omission at line 26.

(340) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.55.4.14 - Restricted the instruction for correspondence for field 7027 to Forms 8867 incomplete only because of the omission at line 27.

(341) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.57.3.6 - Added instruction for transmitting for bottom of screen and verifying number of dependents of eligible for the Child Tax in field 02CEV. EC 012

(342) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.59.3.3 - Changed "text of TPNC 100" to "text for correspondence" in paragraph 3. EC 038

(343) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.76.1.6 - Removed the restriction for verifying the taxpayer's figure for tax calculated under section 962. EC 265

(344) IPU 13U0249 issued 02–05–2013. IRM 3.12.3.78.2.24 - Added line numbers for TY11 and TY12 to paragraph 6B] and added an entry on line 36 of Form 3800 (line 32 for TY10) to conditions requiring the use of Field 04SCV.

(345) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.2.9.1 - Added EC 028 after correspondence by C&E to list of reasons for second correspondence.

(346) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.3.15 - Changed TY08 to TY09. Prior-year returns

(347) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.4.3.10 - Changed year 2011 to 2012 in paragraph 2 and 4.

(348) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.4.3.20 - Changed year 2012 to 2013 in paragraph 12E] and 13.

(349) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.7.4.1 - Corrected addition for ABI, changing it to $1,150 and $1,450.

(350) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.77.17.3 - Changed the end of the date range to 1/1/2013 in paragraph 4G].

(351) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.79.7.10 - Revised paragraph 10 with an instruction to use TPNC 648 when the taxpayer doesn't report the obligatory payment or include it in total tax and to use TPNC 649 when the taxpayer's payment is less that the obligatory payment or the taxpayer misfigures the payment.

(352) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.81.4.3 - Restricted instructions and procedures in error code to TY11 and TY10.

(353) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.81.4.4 - Added TY11 and TY10 to title and restricted instructions and procedures in error code to TY11 and TY10.

(354) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.81.4.5 - Added TY11 and TY10 to title and restricted instructions and procedures in error code to TY11 and TY10.

(355) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.81.4.6 - Added TY11 and TY10 to title and restricted instructions and procedures in error code to TY11 and TY10.

(356) IPU 13U0272 issued 02-04-2013. IRM 3.12.3.81.4.7 - restricted use of TPNCs to TY11 and TY10.

(357) IPU13U0257 issued 01-31-2013. IRM 3.12.3.3.1.1(2) - Deleted the instruction for CCC G and the reference to EC 048.

(358) IPU13U0257 issued 01-31-2013. IRM 3.12.3.75.1.6(8) - Corrected the standard deduction for filing status single. EC 252

(359) IPU13U0257 issued 01-31-2013. IRM 3.12.3.60.1.3 - Deleted paragraph 4, 5, and 6.

(360) IPU13U0257 issued 01-31-2013. IRMN 3.12.3.75.5.11.1 - Corrected typos, changing section 70 to 63 in paragraph 2 and Form 8589 to 8958 in paragraph 3.

(361) IPU13U0257 issued 01-31-2013. IRM 3.12.3.77.11.3 - Recast description of Form 5695 in paragraph 3; added description of Form 5695 for TY12 in paragraph 4; added description of Form 5695 for TY 11 to TY06 in paragraph 5; added procedures for Form 5695 for TY12 in table in paragraph 7.

(362) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.38.4 - Added an instruction to correspond for Schedule 8812 for TY12. Section 47

(363) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.40.4 - Added an instruction to correspond for Schedule 8863 for TY12. Section 50

(364) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.55.4 - Added an instruction for deleting section 70 when a self-filer submits Form 8867. Section 70

(365) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.55.4.12 - Added instructions for corresponding for missing answer to question 26 of Form 8867. Section 70, field 7026A

(366) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.55.4.13 - Added instructions for corresponding for missing answer to question 26 of Form 8867. Section 70, field 7026B

(367) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.55.4.14 - Added instructions for corresponding for missing answer to question 27 of Form 8867. Section 70, field 7027

(368) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.58.8.3 - Added a tolerance for payments and an instruction for small or no payments and the filing status married filing separately. EC 029

(369) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.59.3.3 - Added a note for coding field 47A, 47B, 47C or 47D when box Yes and No are checked; replaced the request for a list of dependents with a request for Schedule 8812; added an instruction for deleting the entry from field 47A, 47B, 47C, or 47D for a dependent with an SSN; added the location in EC 290 and 340 or the TPNC for the failed substantial presence test. EC 038

(370) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.73.4.3(4) - Extended range of valid years of deduction for educator expenses to 201212. EC 220

(371) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.75.5.11 - Added that Form 8958 now necessary in returns reporting community property and added instructions for correspondence. EC 260.

(372) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.75.5.1.1 - Added instruction for correspondence for absent Form 8958 and instruction for completeness of the form. EC 260

(373) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.77.10.6(3) - Added an instruction for a TPNC 100 for dependents who don't meet the substantial presence test for the Child Tax Credit. EC 290

(374) IPU 13U0242 issued 01-30-2013. IRM 3.12.3.81.1.6 - Added an instruction for a TPNC 100 for dependents who don't meet the substantial presence test for the Child Tax Credit. EC 340

(375) IPU 13U0185 issued 01-23-2013. IRM 3.12.3.12.4.11 - Updated description of statutory income. Section 09

(376) IPU 13U0185 issued 01-23-2013. IRM 3.12.3.56.1.3 - Expanded instructions. EC 001

(377) IPU 13U0185 issued 01-23-2013. IRM 3.12.3.58.6.3 - Added instructions for using IRPTR to verify income. EC 027

(378) IPU 13U0185 issued 01-23-2013. IRM 3.12.3.76.2.1 - Added a parenthetical remark that the figure in field 3229> is not the limited exemption but rather the amount by which the exemption is limited. EC 268

(379) IPU 13U0185 issued 01-23-2013. IRM 3.12.3.79.11.3(3) - Changed the word death to birth in three places. EC 338

(380) IPU 13U0185 issued 01-23-2013. IRM 3.12.3.81.11.6 - Revised the instructions for evaluating Form 2210 and 2210-F. EC 360

(381) Various editorial changes were made throughout the IRM.

(382) Updated the format and text.

(383) Updated all the tax periods and tax period references in various subsections.

(384) Updated the references to various subsections.

(385) Updated exemption amounts, standard deduction and additional standard deduction amounts at various subsections.

(386) Updated the references to all money amounts, tolerances, and limitations throughout the text.

(387) Updated all EITC money amounts.

(388) Updated "ELF" to "electronic returns" throughout the IRM.

(389) Updated correspondence procedures to include preparation of Form 6001 by tax examiner identifying need for correspondence.

(390) Updated conversion of returns to correspond before converting return.

(391) Section 01 - Added Special Processing Codes S and T.

(392) Section 04 - Deleted Field 04AEI, Advanced Earned Income Credit.

(393) Section 04 - Updated instructions for 04RTX to include all other taxes.

(394) Section 04 - Added two new fields, Field 0460A, Form 8959, Additional Medicare Tax and Field 0460B, Form 8960, Net Investment Income Tax.

(395) Section 05 - Deleted four fields, Field 05MWP, Field 05MWV, Field 05SMC, and Field 05RRC.

(396) Section 05 - Updated Field 0571C to Field 05PYM.

(397) Section 05 - Added two new fields, Field 05OTH, Other Payment or Credit Amount and Field 05TYP, Other Payment or Credit Type. These are ERS Input only fields.

(398) Section 07, Schedule A - Added new Field 0703, Percentage of AGI Taxpayer.

(399) Section 07, Schedule A - Deleted Field 07MVT.

(400) Section 12, Schedule D - Added new transcription fields: Fields 121AD, 121AE, 121BG, 122E, 122G, 123E, 123G, 1205, 128AD, 128AE, 128BG,129E, 129G, 1210D, 1210E, 1210G and1212 and renamed other transcription fields.

(401) Section 22, Form 3800 - Changed field designator Field 2231 to 22EXB.

(402) Section 24, Form 4137 - Added new field designator, Field 2406, Unreported Tips Subject to Medicare Tax.

(403) Section 38, Form 8839 - Updated fields to include prior years lines.

(404) Section 38, Form 8839 - Updated line numbers changed on 2013 return.

(405) Section 44/45, Schedule H - Added two new fields, Field 4405/4505, Schedule H Total Cash Wages/Additional Medicare Tax and Field 4406/4506, Schedule H Additional Medicare Tax Section and renamed other transcription fields.

(406) Section 44/45, Schedule H - Deleted Fields 44TNT/45TNT and Field 44AEI/45AEI.

(407) Section 57, Schedule L - Deleted section.

(408) Section 64, Form 5884–B - Deleted section.

(409) Section 67, Form 8834 - Updated, prior year section only.

(410) Section 71, Form 8959, Additional Medicare Tax - Added as a new section.

(411) Section 72, Form 8960, Net Investment Income Tax-Individuals, Estate, and Trusts - Added as a new section.

(412) Error Code 029 - Added six new fields, Field 01SS, Secondary TIN; Field 01SNC, Secondary Name Control; Field >>>>, NAP EIF Secondary Name Control; Field 05BDR, Balance Due Refund; Field >>>>>, Balance Due/Refund Computer, and Field 05BDR>, Balance Due/Overpayment Taxpayer Computer.

(413) Error Code 034 - Added a Clear Field for Form 1040/A.

(414) Error Code 126 - Deleted two fields, Field 07MVT and Field 5709.

(415) Error Code 159 - Deleted.

(416) Error Code 165, Schedule H - Added two new fields, Field 4405/4505, Schedule H Total Cash Wages/Additional Medicare Tax and Field 4406/4506, Schedule H Additional Medicare Tax Section and renamed other transcription fields..

(417) Error Code 165, Schedule H - Deleted Fields 44TNT/45TNT and Field 44AEI/45AEI.

(418) Error Code 168, Schedule H - Added two new fields, Field 4405/4505, Schedule H Total Cash Wages/Additional Medicare Tax and Field 4406/4506, Schedule H Additional Medicare Tax Section and renamed other transcription fields.

(419) Error Code 168, Schedule H - Deleted Fields 44TNT/45TNT and Field 44AEI/45AEI.

(420) Error Code 174, Schedule H, Advance EIC Payments versus Medicare Wages - Deleted error code.

(421) Error Code 180 - Deleted.

(422) Error Code 204, Schedule D - Added new fields; Fields 121AD, 121AE, 121BG, 122E, 122G, 123E, 123G, 1205, 128AD, 128AE, 128BG,129E, 129G, 1210D, 1210E, 1210G and1212 and renamed other transcription fields..

(423) Error Code 232, Medical Deduction - Added four new fields, Field 01PYB>, Primary NAP Date of Birth; Field 01SYB>, Secondary NAP Date of Birth; Field 04ABI, Age and Blindness Indicator, and Field 0703, Percentage of AGI Taxpayer.

(424) Error Code 236 - Deleted Field 07MVT.

(425) Error Code 240 - Added three new fields, 01TXP, 01PRC, and 01ACD.

(426) Error Code 242 - Deleted Field 26FDD.

(427) Error Code 252 - Deleted Fields 57SLT, 57SLT>, 5709, and 07MVT>.

(428) Error Code 260 - Added Fields 01ACD, 0443, and >>>> (Tentative Tax Computer).

(429) Error Code 260 - Deleted Fields 0460, 04CBR, and 04USS.

(430) Error Code 268 - Deleted Fields 26FDD and 57MVT>.

(431) Error Code 268 - Changed Field 3229> to 32EX>.

(432) Error Code 270 - Deleted Fields 26FDD and 57MVT>.

(433) Error Code 270 - Changed Field 3229> to 32EX>.

(434) Error Code 296 - Added the Clear Field to Form 1040/A.

(435) Error Code 302 - Changed Field 2231 to 22ESB.

(436) Error Code 320 - Deleted.

(437) Error Code 322 - Added Fields 4405, 4406, 4505, and 4506 and renamed other transcription fields.

(438) Error Code 322 - Deleted Fields 44TNT, 44TNT>, 44AEI, 45TNT, 45TNT>, and 45AEI.

(439) Error Code 326 - Changed field names to match new lines numbers on Schedule H.

(440) Error Code 327 - Added Fields 44TOT> and 45TOT>.

(441) Error Code 327 - Deleted Fields 44TNT> and 45TNT>.

(442) Error Code 330 - Deleted and renumbered to Error Code 334.

(443) Error Code 331 - Deleted.

(444) Error Code 334, Total Taxes - Renumbered from Error Code 330.

(445) Error Code 334 - Added new Fields, 01TXP, 01FSC, >>>> (Combined FTHBC Repayment Computer), PNFH>, SNFH>, >>>> ( (Other Taxes Computer(, 0460a, 7118>, 0460B, and 7217>.

(446) Error Code 334 - Deleted Fields 0447, 0448, 0448>, 0449, 0450, 0451, 0452, 0453A>, 0453B, 0453C>, 04OSC, 04AEI, PNDH>, SNDH>, and computer underprints to Fields 0447, 0449, 0450, 0451, 0452, and 04OSC.

(447) Error Code 338 - Deleted Field 04AEI.

(448) Error Code 348 - Changed Field 0571C to 05PYM and added Fields 05OTH and 05TYP.

(449) Error Code 350 - Changed Field 0571C to 05PYM and added Fields 05OTH and 05TYP.

(450) Error Code 350 - Deleted Fields 05MWP and its computer underprint and 05RRC.

(451) Error Code 360 - Changed Field 0571C to 05PYM and added Fields 05OTH and 05TYP.

(452) Error code 360 - Deleted Fields 05MWP and its computer underprint and 05RRC.

Effect on Other Documents

This IRM supersedes IRM 3.12.3, dated October 24, 2012 (effective January 1, 2013). The following IRM Procedural Updates (IPUs), issued between January 23, 2013 through October 22, 2013, have been incorporated into this IRM: 13U0185, 13U0242, 13U0257, 13U0272, 13U0294, 13U0310, 13U0472, 13U0697, 13U0713, 13U0723, 13U0753, 13U0763, 13U0772, 13U0783, 13U0793, 13U0809, 13U0869, 13U0882, 13U0902, 13U0972, 13U1021, 13U1106, 13U1131, 13U1170, 13U1198, 13U1233, 13U1260, 13U1289, 13U1414, 13U1497, and 13U1551.

Audience

Individual Master File (IMF) Error Resolution Departments, Wage and Investment (W&I) Submission Processing Campuses

Effective Date

(01-01-2014)

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

3.12.3.1  (01-01-2014)
Introduction

  1. This IRM section provides instructions for Individual Master File (IMF) Error Resolution System (ERS) processing. The instructions in this manual are for correcting the following:

    1. Errors made by taxpayers and tax preparers.

    2. Errors made during return processing.

  2. The instructions in this manual are for Form 1040, Form 1040A and Form 1040EZ.

  3. Throughout this manual, forms will be referred to by numbers only and schedules will be referred to by letters only.

  4. The following introductory information is contained in this subsection of the manual:

    • General Guidelines

    • Organization of Text

3.12.3.1.1  (01-01-2014)
General Guidelines

  1. Instructions in this manual are for a typical return. Apply the instructions, as far as possible, when a unique situation exists. Refer any unusual situations and complex cases to the Lead Tax Examiner.

  2. Lines in this manual marked with "#" are for official use only and must not be disclosed.

  3. This manual is the main source of information on correcting the record on the computer screen and the related return. Other procedures may be found in the following IRMs:

    1. IRM 3.12.37, IMF General Instructions — Contains general instructions for correcting records on the screen, document control, inventories and management reports.

    2. IRM 3.11.3, Individual Income Tax Returns — Contains coding and editing procedures.

      Note:

      Use the instructions in other IRMs only when specifically instructed in this IRM to do so.

  4. The ERS Job Aid Books, Current Year Job Aid 2515–015 and Prior Year Job Aid 2515–014, are used as reference guides for this manual. This manual refers the tax examiner to appropriate explanatory information or exhibits in the job aids. When a conflict between any reference or training material and this manual occurs, the manual instructions take precedence.

3.12.3.1.2  (01-01-2014)
Organization of Text

  1. This manual is organized so that correction procedures can be located quickly. All related procedures are contained in a single location, whenever possible.

  2. The text is organized as follows:

    • General Information

    • Special Procedures

    • Suspense Correction

    • Field Errors (Priority III)

    • Error Codes (Priority IV)

    • Suspense Procedures

    • No Reply To Correspondence

    • Exhibits

3.12.3.2  (01-01-2014)
General Information

  1. The general information contained in this subsection of the manual are:

    • Background

    • Perfecting the Tax Return and Error Screen Display

    • Command Codes

    • ERS Action Codes

    • Revalidating with OLE

    • Taxpayer Notice Code (TPNC)

    • Computer Assisted Review of Error Resolution System (CARE)

    • Computer Assisted Pipeline Review (CAPR)

    • Correspondence Procedures

    • Types of Errors

3.12.3.2.1  (01-01-2014)
Background

  1. Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction.

  2. You must do one of the following when the error record displays on the screen:

    1. Correct the displayed Error Codes or displayed invalid conditions.

    2. Suspend document for additional information.

    3. Remove document from pipeline processing.

  3. ERS screen display corrections may also include correcting errors in editing and transcribing, or in the case of taxpayer errors, notifying the taxpayers of the error on return.

3.12.3.2.2  (01-01-2014)
Perfecting the Tax Return and Error Screen Display

  1. The following information will be shown in the header portion of each error record on the Error Screen Display:

    • Document locator number (DLN)

    • Social security number (SSN) or IRS individual taxpayer identification number (ITIN)

    • Name control or check digits, if present

    • Previously assigned taxpayer notice code(s)

3.12.3.2.2.1  (01-01-2014)
Document Locator Number

  1. The document locator number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems.

  2. The DLN is used to control, identify and locate a document.

  3. Always make certain that the DLN on the Error Screen matches the DLN of the document before making any corrections to the screen display. IRM 3.12.3.2.2.1.3.

3.12.3.2.2.1.1  (01-01-2014)
Julian Date

  1. A Julian date is the numeric day of the year. For example, April 15, 2014, is Julian Date 105, the 105th day of 2014.

  2. The sixth, seventh and eighth digits of a DLN make up the Julian date.

3.12.3.2.2.1.2  (01-01-2014)
Sequence Number

  1. The twelfth and thirteenth digits of the DLN are the sequence number.

    1. Returns in a block are numbered from "00" to "99" .

    2. The maximum number of returns in a numbered block is 100.

    3. Numbered returns in a block must stay in sequence number order.

3.12.3.2.2.1.3  (01-01-2014)
Mixed Data

  1. Before making any corrections to the Error Screen display, make certain that the DLN on the screen display matches the DLN on the Document.

  2. Mixed data situations exist when either of the following are present:

    1. Information from two different tax returns appear on the error record under one DLN.

    2. The information on the return for the DLN does not match the return on the screen display.

  3. Take the following actions on mixed data situations:

    1. Stop processing.

    2. Give the entire block of work to your manager.

      Note:

      Management will decide if the mixed data situation can be corrected via the terminal, or if the individual returns must be deleted and re-input.

3.12.3.2.2.2  (01-01-2014)
Corrections

  1. Correcting coding and transcription errors and misplaced entries on display fields to ensure taxpayer's entries are on the appropriate lines of the tax return.

  2. Refer to all instructions for each Error Code prior to taking action to determine the proper action(s) needed to resolve the error.

  3. Follow all instruction for the each Error Code that applies.

3.12.3.2.2.2.1  (01-01-2014)
Internal Use Forms

  1. Form 3471, Edit Sheet — This form is used to edit unallowable conditions. Generally edited by Code and Edit or Examination.

  2. Form 4227, Intra-SC Reject/Routing — This form is used when special conditions require additional research, referral and/or action before document can be processed.

  3. Form 6001, Letter 12C Correspondence Action Sheet — This form is used to generate a Letter 12C to the taxpayer asking for additional information needed to continue processing their tax return.

3.12.3.2.2.2.2  (01-01-2014)
Working Trails

  1. A working trail is a written and legible statement placed on a document as a record of action taken. They are used when information may be needed for other campus functions to accurately process tax returns.

  2. ERS working trails will be determined locally by each campus.

  3. Working trails can contain the following:

    • SSN

    • Information about detached documents (i.e., detached Form 1040X, etc.)

  4. A working trail must also be written on any detached document. The following information, if present, must be indicated in the working trail of the detached document:

    1. Current date if before April 22, 2014.

    2. The received date of the return if April 22, 2014 and after.

    3. Tax period of return in YYYYMM format.

3.12.3.2.2.2.3  (01-01-2014)
Attachments to Returns

  1. You must take the appropriate action as defined in the Attachment Guide Exhibit 3.12.3–11 when you are led to and find a taxpayer correspondence or attachment to a return.

    Note:

    You are not required to search for attachments or correspondence unless specifically instructed to in the section or error code; however, you should be conscientious in taking the appropriate action on any attachments or correspondence found. Particular attention must be paid to remittances in the form of checks, money orders, etc. If a check or money order is found, immediately inform your manager or lead.

3.12.3.2.2.2.4  (01-01-2014)
Signature Requirements

  1. An original signature is required, below the jurat (perjury statement) and within the box Sign Here, on most returns. Without the taxpayer's signature, the return is not an official document and may not be processed. ERS examiners are required to inspect returns for missing original signatures. If a return is unsigned, SSPND 640 to send the return to Rejects. Refer to exceptions in (8).

  2. Faxed or scanned signatures are valid signatures and are acceptable only when they are:

    • Received from Taxpayer Advocate Service (TAS) or an IRS area—such as Substitute for Return (SFR) returns or returns marked "59XXX" (excluding "59918") received from the Collections Branch, or Correspondence Imaging System (CIS) returns from Accounts Management.

    • Faxed copies with the remark "Process as Original–Faxed Copy."

    • Electronc return prints with an IRSN processed as an original, even when no copy of Form 8453 is attached, or the electronically filed return was signed with a PIN.

  3. If you cannot determine whether the signature is original, SSPND 211 to correspond for an original signature.

  4. Joint returns require the original signature of both taxpayers.

    Exception:

    When it's noted that the spouse is

    1. Deceased and the taxpayer is filing as the surviving spouse

    2. "POW" or "MIA"

    3. Unable to sign the return owing to reasons of health

    4. In a combat zone or qualified hazardous duty area

    5. Any of the following conditions is noted and a POA is attached: overseas (including military), incapacitated by disease or injury, or received advance permission from IRS.

  5. One original signature is acceptable on a joint return when a power of attorney (POA) is attached and the POA is valid for both taxpayers.

  6. If a guardian, personal representative, executor, trustee, or fiduciary files the return, it must have a live signature. Supporting documentation that the appointee has the legal right to file on behalf of the taxpayer may also be required. See IRM 3.12.3.3.20, Deceased Taxpayer.

  7. If the taxpayer is a minor child and the tax return is

    1. signed by a parent, it never requires documentary evidence such as birth certificate, but the parent must sign as "Parent for Minor Child" .

      Note:

      The notation must clearly identify the relationship to the minor.

    2. Signed by a guardian or other fiduciary designee, it requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  8. Do not correspond for a missing original signature in the situations described below.

    Exception:

    For a return that meets the criteria of an Economic Stimulus Payment, see IRM 3.12.3.3.18, Economic Stimulus Payment Returns.

    1. "Substitute for Return Prepared by IRS" is noted or "dummy" return.

    2. "Section 6020(b)" or "prompt assessment" is noted or Form 4810, Request for Prompt Assessment Under IR Code Section 6501(d), is attached.

    3. Form 8879, IRS e-file Signature Authorization, is attached with a valid signature, and there is any indication that an electronic filing was rejected or the return is for a prior year.

    4. The return comes from Exam , Collection or Accounts Management and "Process as Original" is present on the return.

    5. An employee's IDRS number is present on the signature line.

    6. Taxpayer has signed an attached CP 59 or Letter 143C on the line Sign Here. CSCO will note in the area Sign Here whether the taxpayer has signed under the jurat of the CP 59 or Letter 143C.

    7. "ASFR" is written or stamped in the top margin; a pink Form 3531 is attached; or Letter 2566 (SC/CG) or Letter 3219 (SC/CG) is attached. See IRM 3.12.3.3.2.

    8. There is an indication of TRPRT (transcript of a return).

    9. CCC "3" is already present.

    10. The return is from the Correspondence Imaging System (CIS).

3.12.3.2.2.2.5  (01-01-2014)
Fields Not Visible in Error Code

  1. The complexity of calculating income, taxes, and credits sometimes requires a number of fields. The number of fields from time to time exceeds the space available in the ERS screen. In those cases, to resolve the error code, examiners have to use command code GTSEC to retrieve the section and with it the fields that don't appear in the error code but are necessary for its resolution. An instruction to use GTSEC for this reason will no longer appear in error codes.

3.12.3.2.2.2.6  (01-01-2014)
Missing Schedules

  1. If Code and Edit did not prepare a dummy schedule from the attachments, you are not required to prepare a "Dummy" schedule/form when missing from a paper return.

  2. GTSEC XX and on enter all appropriate fields.

3.12.3.2.2.2.7  (01-01-2014)
Money Fields

  1. For Form 1040 and Form 1040A ISRP transcribes

    1. all money fields from page 1 in dollars only.

    2. all money fields from page 2 up to and including Other Taxes (Form 1040) or Total Credits (Form 1040A) in dollars only.

    3. all Section 05 fields, and Total Tax from Section 04 in dollars and cents.

    4. all attachment schedules/forms in dollars only unless otherwise noted in the section.

    Note:

    ISRP transcribes all of Form 1040EZ in dollars and cents.

  2. Some of the fields transcribed in dollars only will display in ERS in dollars and cents, with two zeros to the right of the decimal point.

  3. Any correction to a field with "**" must be entered in dollars only. Any correction to a field without "**" must be entered in dollars and cents.

3.12.3.2.2.2.8  (01-01-2014)
Clear Code C and 000

  1. A field labeled "CL" will be displayed for the entry of a Clear Code when there is a possibility that a change or correction may not be needed. This field is located on line 4 of the screen display, to the right of CRECT. These records are cleared by either of the following actions:

    1. Correcting the error condition and transmitting.

    2. Enter "C" in the Clear Field, to indicate no correction is needed.

    Note:

    If a correction is made, you must transmit before entering the clear code "C" .

  2. Unfinished records from the previous day will not contain any of the "C" Clear Codes that were assigned to the record. All Clear Codes are removed by the system for the new day's inventory. Programming will erase all "C" Clear Codes when a record has been suspended with the CC SSPND.

  3. Use the numeric "000" as a Clear Code to delete invalid or erroneous Action Codes when there is no reason to suspend the record.

  4. Clear Action Codes 410 and 700 before resolving other errors in a record. All other Action Codes, enter "C" in the Clear Code Field after corrections for the Action Code have been completed.

3.12.3.2.2.2.9  (01-01-2014)
Entity Information

  1. Input entity changes when any acceptable written notification, as defined in the following, is received from the taxpayer and you are led to the Entity area:

    1. Written notification signed by the taxpayer informing the Service he/she wants their address changed.

    2. IRS correspondence returned by the taxpayer with new address information. No signature is required.

    3. Form 8822, Change of Address, is attached to the return. Enter as intermediate or long entity.

3.12.3.2.2.2.10  (01-01-2014)
Miscellaneous Payments

  1. When taxpayers attach a state income tax return with their federal return, detach and route the state income tax return to the Receipt and Control Branch. Receipt and Control will route the return to the appropriate state taxing agency. If the state income tax return is not attached, but the taxpayer is attempting to pay "state income tax" on the federal return, assign Taxpayer Notice Code 298.

  2. A Presidential Task Force has determined that taxpayers can make a contribution to reduce the Public Debt. Certain tax packages contain a message from the Commissioner telling taxpayers that they may send a separate check made out to the Bureau of Public Debt with their tax returns. If a check made out to the Bureau of Public Debt is found attached to the return, route to Receipt and Control.

3.12.3.2.3  (01-01-2014)
Command Codes

  1. Use the appropriate Command Codes (CC) when correcting the Error Inventory and the Workable Suspense Inventory or when additional research is necessary. The ERS and IDRS Command Codes are as follows:

    ERS COMMAND CODES
    COMMAND CODE DESCRIPTION
    CRECT Used to enter a correction.
    DLSEC Used to delete a section from the data record.
    GTREC Used to access the first error in a block in the Error Inventory or a specific record in the Workable Suspense Inventory. It can also be used to redisplay any uncorrected error.
    GTSEC Used to obtain the display of any section of a record in process.
    NWDLN Used to change (renumber) the DLN and MFT of the record and reject the record.
    RJECT Used to reject a record from ERS.
    SSPND Used to enter an Action Code and place a record in suspense.
    TRDBV Used to obtain the display of edited, transcribed, and corrected data from electronic returns and Telefile returns for tax year 1998 and later.
    TRERS Used to link the DLN entered with the command code GTREC with the TRDBV and display the electronic return.

    IDRS COMMAND CODES
    COMMAND CODE DESCRIPTION
    ENMOD Used to request the entity module for a specific Taxpayer Identification Number.
    ENREQ Used to input entity changes for all master files.
    ENREQR Used to input CC IRCHG.
    ERINV Used to research a DLN or TIN on the ERS Control File.
    IMFOL Will display entity and tax module information on-line for query access.
    INCHG Response to CC ENREQ for IMF and IRAF accounts. This is a generated command code with a screen format.
    INOLE Used to access the most current entity data from the national (NAP) files.
    IRCHG Response to CC ENREQR. Used to add a name control to the valid name controls for a given TIN (make an account "IRS valid" ). Initiates an account merge of the valid and invalid TINs for a given account.
    IRPTR Contains entity data, cross reference information, DOD/DOB, and income summary information. CC IRPTR is available for researching information (before or after correspondence), to determine items such as gross social security benefits, withholding, social security tax withheld, and Medicare tax withheld. IRPTR is updated monthly. On-line research will be available for the current tax year plus the two previous years. It is anticipated that in late May the current years data will post and the data older than three years will be dropped.
    NAMEB Name and address data is entered to research a missing EIN.
    NAMEE Name and address data is entered to research a missing EIN.
    NAMEI Name and address data is entered to research a missing SSN.
    NAMES Name and address data is entered to research a missing SSN.
    RTVUE Contains edited, transcribed, and corrected data from data entry lines of returns and related forms and schedules filed in the current processing year (including two prior tax years).
    TXMOD Used to research a specific tax period for a specific type of tax.

    Note:

    Additional information is contained in IRM 3.12.37, IRM 2.3, IRM 2.4, and Job Aid Book 2515-015.

  2. When IDRS is unavailable, SSPND 351.

3.12.3.2.4  (01-01-2014)
Error Resolution System (ERS) Action Code

  1. Description — ERS Action Code indicates that specific information is missing, suspended, or removed from processing. ERS Action Codes will have sufficient detail to indicate if correspondence, in-house research, or other action(s) are required. Exhibit 3.12.3-3 explains the Action Codes.

  2. Code and Edit tax examiners assign Action Codes to numbered returns that are unprocessable, require research, correspondence, etc. The code is entered on the lower center margin of the return.

  3. Correspondence Action Sheets (Form 6001) are attached by Code and Edit for initiating correspondence.

  4. Action Codes will generally be sufficient with no further explanations, when routing within the campus for in-house research.

  5. The Action Code assigned by Code and Edit is transcribed and kept as part of the Form 1040 record. It will always display as a Priority 1 Error.

  6. Correction Procedures — Use CC SSPND, RJECT, or NWDLN to enter an Action Code on the record, correct an invalid code, resuspend, or delete a record from ERS. If the Action Code assigned by Code and Edit or transcribed by ISRP, is invalid or incomplete, use "000" as a Clear Code to delete invalid or erroneous Action Codes when there is no reason to suspend the record.

    Note:

    Only one Action Code can be assigned at one time to a record from ERS

    .

  7. Enter a valid Action Code with CC SSPND to clear the record from the screen and place it in either Workable or Unworkable Suspense.

  8. Enter CC RJECT to delete the ERS record from ERS Inventory and the Service Center Control File (SCCF). Only Action Codes 620, 630, 640, 651, 660 and 670 are valid with CC RJECT.

  9. Enter an Action Code with CC NWDLN to delete the record from ERS and the SCCF and establish a new DLN for input.

3.12.3.2.5  (01-01-2014)
Revalidating With OLE

  1. ERS allows for the on-line revalidation of the TIN and Name Control using the Online Entity System (OLE). Corrections made in ERS to TIN and Name Control, will revalidate by accessing the National Accounts Profile (NAP). The Error Codes where this occurs for primary taxpayers are as follows:

    • Error Code 003

    • Error Code 004

    • Error Code 005

    • Error Code 006

    • Error Code 007

    • Error Code 008

    • Error Code 009

    • Error Code 011

  2. The Error Codes where NAP revalidation takes place for Secondary SSN, dependents and Earned Income Credit (EIC) children are:

    • Error Code 010

    • Error Code 011

    • Error Code 012

    • Error Code 013

  3. The Error Codes where NAP revalidation takes place for Schedule H information (employer identification numbers (EINs) only) are:

    • Error Code 164

    • Error Code 170

    • Error Code 172

  4. Various Error Codes will provide instructions to move your cursor to the bottom of the screen and transmit. This will send the record back out for revalidation by the NAP.

3.12.3.2.6  (01-01-2014)
Taxpayer Notice Code (TPNC)

  1. Taxpayer Notice Codes (TPNC) are used when a math error is present involving the tax liability or refund/amount owed. TPNCs are entered on the ERS screen display following the literal "NC" .

  2. Once a code is transmitted to the record, it cannot be changed unless a correction causes an Error Code with a higher priority or a correction erases an Error Code previously cleared with a TPNC. See IRM 3.12.3.2.10.4.(4) and (5).

  3. A TPNC assigned on an Error Code will be redisplayed with subsequent displays of that record.

  4. Multiple TPNCs can be entered when multiple error conditions are shown. IMF ERS can generate a maximum of five TPNCs; the fifth must be TPNC 100, unless the fifth is the last TPNC you assign. See paragraph 9 below.

  5. When working a converted return and a TPNC is required to resolve the error, assign TPNC 111 as the first notice code to inform the taxpayer the return has been converted to a Form 1040.

  6. TPNCs assigned must be valid for that Error Code. If an invalid TPNC is entered, the same math Error Code will re-display.

  7. Enter TPNCs only after you have determined that no other corrections to the screen display are needed. If you need to change information on the screen and assign a TPNC; first correct the appropriate field(s), and transmit. When the Error Code redisplays, assign the TPNC(s).

  8. An error may ripple through a return, changing the taxpayer's figures that were originally correct. These ripple errors—especially but not only in taxable income and the AGI—can trip error codes that would not otherwise have generated. If an error code is the direct result of a ripple error, assign any previously assigned TPNC.

    Caution:

    It is important that the taxpayer be advised of all errors that are present on the return. Use caution when entering any previously assigned TPNC.

  9. Use TPNC 100 and take the appropriate action when the following apply:

    If using TPNC 100... Then...
    A] As the fifth TPNC,
    1. Indicate that there are more than five TPNCs.

    2. Write all applicable TPNCs (including 100) on Form 12126 or similar.

    3. Attach Form 12126 to the front of the return, below the entity.

    B] When no existing TPNC fits the error situation,
    1. Print message (exactly as it should read on the notice) on Form 12126 or similar.

    2. Write TPNC 100 (and any other TPNCs sent) on Form 12126.

    3. Attach Form 12126 to the front of the return, below the entity.

    4. Follow local procedures (i.e., leave return in the block or charge out the return and route directly to Notice Review).

    C] On electronic returns Returns,
    1. GTSEC 01 and print the entity screen display.

    2. Complete Form 12126, or similar, with the approved text and any additional TPNCs that were assigned and attach it to the Section 01 screen print.

    3. Place the Section 01 screen print in a designated area for electronic returns with TPNCs 100.

    Note:

    When assisting a primary campus with electronic ERS inventory, all Section 01/ TPNCs 100 must be faxed daily to the primary campus.

    Note:

    The list of allowable TPNCs shown at the end of each math Error Code displays only a short description of the actual literal. Refer to Exhibit 3.12.3-2 for a complete list of TPNCs with the actual literals.

  10. SSPND 640 to return to originator and indicate on Form 4227 the error condition and the TPNC that would have to be sent when any of the following exist:

    1. Substitute for Return Prepared by IRS under authority of Section 6020(b).

    2. An assessment made from Form 2859, Request for Quick or Prompt Assessment.

    3. The return is an Examination adjustment case, identified as Secured by Examination.

    4. Form 3198, Special Handling Notice for Examination Case Processing, is attached.

    Note:

    If you can determine that the originator wishes to have a TPNC sent, you may send one.

3.12.3.2.7  (01-01-2014)
Computer Assisted Review of Error Resolution System (CARE)

  1. Computer Assisted Review of Error Resolution System (CARE) is the "on-line" quality review of TPNCs initiated by the ERS system. The CARE system is a management tool used to identify incorrect or erroneous TPNCs, before the normal Notice Review process.

  2. Notices corrected by CARE prevent the following:

    • Delays in refunds

    • Delays in balance due notices issued

    • Incorrect direct deposits

    • Erroneous notices being generated to the taxpayer

  3. CARE reviewers correct TPNCs on-line using the ERS system, the day following ERS processing. The CARE process begins with the selection of TPNCs to be reviewed using any of the following criteria:

    • All of a Tax Examiner's Work

    • All Notice Codes

    • Money Amount

    • Batch and Block Number

3.12.3.2.8  (01-01-2014)
Computer Assisted Pipeline Review (CAPR)

  1. For 2002 and later, ERS Tax Examiners will no longer be required to enter a CAPR code.

  2. If an entry is made in the first position after the field designator, a CAPR error will display stating the Valid CAPR Codes (M, C, T, E, D, S, and Blank).

3.12.3.2.9  (01-01-2014)
Correspondence Procedures

  1. ERS examiners are required to inspect returns for missing original signatures. Without the taxpayer's signature the tax return is not an official document and may not be processed. See IRM 3.12.3.2.2.2.4.

    1. If a return is unsigned, SSPND 640 to send the return to Rejects.

    2. If the present signature cannot be determined to be an original, correspond for an original signature.

  2. Correspondence is necessary when a return is incomplete or illegible and for that reason cannot be processed.

  3. Stop processing the return when you have identified a need to correspond and take the appropriate action(s) as follows:

    1. Scan the tax return for further reasons for correspondence: missing forms, unattributable tax liability, missing original signature, missing information about dependents or EIC children such as name, relationship, or TIN. Do not correspond for only the TINs of dependents or EIC children.

      Note:

      Tolerances and thresholds apply to some forms and affect correspondence. See the following exceptions when corresponding for
      • Missing original signatures. See IRM 3.12.3.2.2.2.4.
      • Form 1116. Refer to EC 274.
      • Form 2106. Refer to EC 244.
      • Form 8283. Refer to EC 240.
      • Form 8812. Refer to EC 340.
      • Schedule EIC. Refer to EC 338.
      • Form W-2 or Form 1099. Refer to EC 350.

      Caution:

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

    2. Check the return for Form 2848, Power of Attorney and Declaration of Representative, or similar statement to ensure that the correspondence is correctly addressed.

    3. When a return is for a minor taxpayer and the parent's name is known, ensure that the parent's name appears in Field 01NL2 . Look for the parent's name on Form 8615 or the signature line of the return.

    4. When you correspond for Schedule C or F and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no Schedule SE is present, request that the taxpayer declare liability or non-liability for the self-employment tax too.

      Caution:

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

  4. Correspond for all missing information "prior" to referring the return to other IRS entities (e.g., Exam, CI, IVO, Entity, etc.)

  5. The ERS tax examiner who identified the need for correspondence will prepare Form 6001 using the following steps:

    1. Mark all appropriate paragraphs on Form 6001.

    2. Complete all information required for each paragraph selected (e.g., Forms, Schedules, amounts, etc.).

    3. Enter all money amounts on Form 6001 in dollars and cents.

    4. Always select paragraph (n) on Form 6001 regarding electronic filing when the return is:
      * A current year return and,
      * There is no indication of electronic filing.

      Exception:

      Do not select paragraph (n) when:
      • the return is for a decedent
      • the return is for a fiscal year
      • the returns shows an address in a U. S. Possession
      • the return shows or suggests that Form W-7, Application for IRS Individual Taxpayer Identification Number was attached. A statement such as "Form W-7 detached" may appear on the return.
      • the return includes Form 5405, First-Time Homebuyer Credit. tax years 2008, 2009, 2010 and 2011 and the taxpayer is attempting to get the refundable credit
      • the return includes Form 8839, Qualified Adoption Expenses, tax years 2010 and 2010.
      • the return includes Form 8948, Preparer Explanation for Not Filing Electronically.
      • the return includes Form 14039, Identity Theft Affidavit.

  6. SSPND 640 (do not correspond) to return to the originator if the return is any of the following or is incomplete or unprocessable:

    1. Substitute for Return Prepared by IRS under the authority of Section 6020(b).

    2. An assessment made from Form 2859, "Request for Quick or Prompt Assessment" .

    3. An Examination Adjustment case identified as "Secured by Examination" .

    4. Form 3198 is attached.

  7. When providing the taxpayer with a contact number, provide a toll-free number whenever one is available. The following is a list of some of those numbers:

    Call Regarding Toll-free Number
    W&I 800–829–0922
    IMF SB/SE accounts 800–829–8374
    Taxpayers with an EIN 800–829–0115
    Estates and Gifts 866–699–4083
    Excise 866–699–4096
    TE/GE accounts 877–829–5500
    TAS 877–777–4778
    TAS, TTY/TDD 800–829–4059

3.12.3.2.9.1  (01-01-2014)
Second Correspondence

  1. Treat missing information on a return as a No Reply, except in the situations in the following list when contact from any area of Processing has previously been made with the taxpayer, including Form 3531 (greenies). SSPND 212 to correspond a second time when any of the following exceptions apply and had not been requested during first correspondence:

    1. Form 6251 as required by Error Code 270.

    2. Form 5329 when no determination can be made as to which taxpayer is liable.

    3. Schedule SE when no determination can be made as to which taxpayer is liable.

    4. Form 4137 when no determination can be made as to which taxpayer is liable.

    5. Schedule H when no determination can be made as to which taxpayer is liable.

    6. Form 8606 when no determination can be made as to which taxpayer is liable.

    7. Form 8919 when no determination can be made as to which taxpayer is liable.

    8. EC 028 appears after Code and Edit has corresponded or ERS has corresponded for "field errors only" . Use Form 6001 paragraphs I and 4.

    9. EC 029 or EC 038 appears after Code and Edit has corresponded or ERS has corresponded for "field errors only" .

  2. Do not correspond again if the information was previously requested and the taxpayer did not furnish the information or furnished an incomplete response. Treat as a No Reply. Refer to Exhibit 3.12.3-1 to determine the correct action to take for No Reply to correspondence when these issues were requested during the first correspondence.

3.12.3.2.10  (01-01-2014)
Types of Errors

  1. The ERS system will identify errors according to type and priority as follows:

    • Action Code Error (Priority I)

    • Section Error (Priority II) - Includes terminus error and Integrated System Remittance Processing (ISRP) problem code

    • Validity Error (Priority III) - Includes field errors

    • Math/Consistency Error (Error Codes) (Priority IV)

3.12.3.2.10.1  (01-01-2014)
Priority I Errors, Action Code

  1. Priority I Errors consist of the following:

    1. Invalid or valid Action Code assigned by Code and Edit.

    2. Valid Action Code assigned to Suspense Inventory.

  2. Use the following error correction for Action Codes:

    If the... Then...
    A] Action Code requires a Suspense Action,
    1. SSPND with correct Action Code.

    2. Go to the bottom of the screen and transmit.

    B] Action Code does not require a Suspense Action, (not a valid code)
    1. Enter numeric "000" in the Clear Field (CL).

    2. Go to the bottom of the screen and transmit.

    C] Action Code is 001,
    1. Enter CC GTSEC for each section that contains data.

    2. Add the required data.

    3. Enter C in the Clear Field.

    4. Go to the bottom of the screen and transmit.


    (record will go through normal validity checks).

    Note:

    Do not remove the document from the block unless the case is a Priority Statute or manual refund case.

3.12.3.2.10.2  (01-01-2014)
Priority II Errors, Section Errors

  1. Priority II Errors may be present if normal ISRP validity checks have been bypassed. These conditions are as follows:

    1. Split screen transmission (Edit Error Code 1). Key Verifier attempted to change the Check Digit, Key Verifier changed four or more digits of the Primary TIN, or the Original Entry Operator indicated that a required section was missing, or the Depositor Account Number (DAN) in Section 06 (that is input twice) was not entered the same both times. The second entry of the DAN is dropped by ISRP. ERS must determine if the entries in Section 06, especially Field 06DAN, have been transcribed correctly.

    2. Invalid section ending point (Edit Error Code 3).

    3. Invalid field length (Edit Error Code 4).

    4. Questionable Section (a section entered twice or entered out of sequence by ISRP) (Edit Error Code 5).

    5. Missing required section.

    6. Terminus errors (no error in record).

  2. The display will only show one section (error) at a time for the transcribed fields (except ERS Action Code and Remittance). Display will be in columnar format with or without data. The error type will also be indicated for ISRP Problem Code errors.

  3. The content will have any individual section, excluding computer generated fields and the Action Code. The Action Code is an uncorrectable field except as defined for CC SSPND and RJECT.

  4. Use the following general guidelines when correcting a Priority II Error:

    1. ISRP Errors — All fields of the section must be examined when this condition exists. If Section 01 of a return is coded, examine the section (via CC GTSEC) for an error to ensure that the return is for the taxpayer whose name is in Section 01. Correct the section. Once the section is correct, transmit from the bottom of the screen.

    2. Missing Section Errors — If data is present for the missing section, enter all the data for the section and transmit. If no data is present for the missing section, refer to specific IRM procedures for initiating research (see IRM 3.12.3.2.3) or correspondence (see IRM 3.12.3.2.9). After initiating research or correspondence, SSPND the record with the appropriate Action Code.

    3. Terminus Errors — All fields of the section must be examined when this condition exists. Make the necessary corrections to the record. Once the section is correct, transmit from the bottom of the screen.

    4. Questionable Section — Verify and enter all the data for the displayed sections. When all of the data is correct, transmit from the bottom of the screen.

  5. Correct all displayed fields before transmitting.

  6. Go to the bottom of the screen and transmit when no corrections are necessary.

3.12.3.2.10.3  (01-01-2014)
Priority III Errors, Validity Errors, including field errors

  1. Priority III Errors generate when any field fails to meet the requirement(s) for that field (and that field only). The following is a list of some conditions that may create a field error:

    1. Non-numeric character in a numeric field.

    2. Non-alphabetic character in an alpha field.

    3. Blank space in a number field.

    4. Blank in the first position of an alpha field.

  2. Priority III Errors will display in columnar format in the order encountered in the record. Overflow fields can be identified by all question marks (for money fields) or a single pound sign in the last position of a Name Line. Every field that displays is in error.

  3. Use the following general guidelines when correcting Priority III Errors:

    1. Check for coding and transcription errors.

    2. Enter the correct data for each field displayed.

    3. Blank the field when no data should be in a displayed field.

    4. Follow section instructions for fields in error.

      Note:

      When "Unrecognizable Field Error" displays, SSPND 630.

3.12.3.2.10.4  (01-01-2014)
Priority IV Errors, Math and Consistency Errors (Error Codes)

  1. Priority IV Errors generate when any valid field is used in any computation in which the results are inconsistent with or contradictory to other valid field(s). EC 001–999 will be assigned by the Computer. If the result of the computer computation of an amount differs from the taxpayer's amount, the computation fields will be shown as a Priority IV Error. Error types will be one of the following:

    • Consistency Errors

    • Validity Errors

    • Math Errors

  2. The display will show the Error Code assigned and the fields needed to make the necessary correction(s).

  3. Resolve all errors by either eliminating the error, entering clear codes, or entering a TPNC.

    Note:

    All math Error Codes will require a correction to a field or the entry of a TPNC.

  4. When correction causes an Error Code with a higher priority than the previous Error Code to display, all Clear Codes and TPNCs already entered for lower priority Error Codes will be deleted. All lower priority Error Codes, still present in the record, will be re-displayed for resolution even when previously cleared with a TPNC or Clear Code.

  5. When a correction causes a cleared Error Code to no longer be in error; the TPNC or Clear Code for that Error Code will be deleted. All TPNCs and Clear Codes assigned to all lower priority (higher numeric) Error Code(s) will also be deleted. Any remaining Error Codes, previously cleared (deleted because of a correction), will re-display.

  6. Use the following general guidelines when correcting a Priority IV Error:

    1. Compare the displayed fields with the return.

    2. Correct all fields edited or transcribed incorrectly.

    3. Enter correct taxpayer amounts for ERS input only fields (e.g., Other Statutory Credits).

    4. Follow the instructions for the displayed Error Code when correcting fields in error.

3.12.3.2.10.5  (01-01-2014)
Error Codes in Series 500 and 600, changes in statutory credits

  1. Error Codes in the 500 and 600 Series (except 601) provide the opportunity to inform the taxpayer(s) of adjustments made to their statutory credits when there is no change to his/her refund. This happens when the taxpayer has more statutory credits available than are needed to zero out the tax. These excess credits are not refundable but can be carried over to the following year. Sometimes the taxpayer will make a mathematical error on his/her return which makes it necessary to use more or less of the credits to offset the tax, but the error still results in no change to their anticipated refund. The taxpayer will be notified of the adjustment to the credit so they can have an accurate record of the carryover credits available to offset tax in the future year. The taxpayer is notified by means of the Letter 2719C. See the following example:

    Before Correction After ERS Correction
    1. Line 44 Tax Amount is $1,000.

    2. Investment Credit is $1,500.

    3. Credit is limited to $1,000.

    4. Credit taxpayer will carry forward is $500.

    1. Line 44 Tax Amount is $1,400.

    2. Investment Credit is $1,500.

    3. Credit is limited to $1,400.

    4. Credit taxpayer will carry forward is $100.

  2. Prepare Form 3696–A to initiate the Letter 2719C when the change to credits is $100 or more. Complete the following:

    1. Boxes 1 through 9 (as appropriate), on Form 3696–A.

    2. "Fill-ins" portion of Form 3696–A.

    3. "Fill-ins" 01 through 05 of Form Letter 2719C (these are required).

    Note:

    If preparing Form 3696–A for Form 3800 (TY97 and later), and line 3 (Passive Activity Credits Included) or line 5 (Passive Activity Credits Allowed) of Form 3800 is present; do not reference on Form 3696–A individual general business credit. Instead, reference any and all Form 3800 credits as "your general business credit" .

3.12.3.3  (01-01-2014)
Special Procedures

  1. This subsection addresses the following special situations, return types and procedures:

    • Secured/Photocopied/Second Returns

    • Automated Substitute for Return (ASFR)

    • Frivolous Filer

    • Accounts Over 100 Million Dollars

    • Injured Spouse Allocation

    • Innocent Spouse Relief Request

    • International Returns

    • KITA — Killed in Terrorist Action

    • Military Spouse Residency Relief

    • Combat Zone Returns

    • Natural Disaster/Emergency Relief Program

    • Conversion of Returns

    • Misblocked Returns

    • Prior Year Returns

    • Re-Entry (Reinput) Returns

    • Taxpayer Advocate Service

    • Economic Stimulus Payment Returns

    • Electronic Returns

    • Deceased Taxpayer

    • Multiple Fliers on the Same Return

    • Tax Return for an ITIN Income and Withholding Statements for SSN

  2. Manual Refund — Any return hand carried by a W & I SP liaison for Taxpayer Advocate Service (TAS) as a manual refund should be processed by a Lead Tax Examiner or designated tax examiner. (See IRM 3.12.3.75.5.3 EC 260.)

3.12.3.3.1  (01-01-2014)
Secured/Photocopied/Second Returns

  1. Taxpayers sometimes file returns with Form 1040, Form 1040A, or Form 1040EZ to correct or change previous returns. Some taxpayers send copies of original returns with payments or correspondence.

  2. Process the return as an original if the phrase "No TC 150," "Secured by Collection," or "TC-599"-XX appears anywhere on the return.

  3. Process a photocopied return as an original when "Process as Original" has been edited on the return, indicating that Exam has the original, delinquent return.

  4. Process any return with the phrase PAO in the upper left corner of the return as an original return so that it may be posted as a duplicate.

3.12.3.3.2  (01-01-2014)
Automated Substitute for Return (ASFR)

  1. Most "Substitute For Returns" (SFRs) have been automated and are now called ASFRs.

  2. Take the following action when an ASFR is received in ERS. ASFRs are usually Section 01 validity errors (e.g., a "ZIP Code" problem or an invalid character). You will not have the actual document:

    1. Research using CC INOLE.

    2. Re-enter the entity data into the field(s) in error.

3.12.3.3.3  (01-01-2014)
Frivolous Filer

  1. SSPND 331 any return on which the taxpayer:

    1. Argues — for any reason — the filing of a tax return or the paying of tax.

    2. Makes use of a frivolous argument to reduce income or liability.

    3. Marks out or alters — in any manner — the penalty of perjury statement (jurat) above the signature.

  2. A Frivolous Return Process stamp in the upper left hand corner should be present if the return has already been reviewed by the Exam FRP Coordinator. Do not SSPND 331, continue processing.

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Example:

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

3.12.3.3.4  (01-01-2014)
Suspect Returns

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. The lists above are not exhaustive or final. Fraudulent returns frequently change. The filers adapt quickly to circumstances and adopt new practices. ERS examiners should refer suspect returns to IVO, CI, or FRP according to the kind of fraud when they believe they've come across a refund scheme not described here. Always apply the criteria for IVO or FRP before sending the suspect return to CI.

  6. If you suspect a return is fraudulent, refer to the following steps. Do not resuspend a return to the same office a second time. If a second referral is necessary, make sure it meets the criteria for referral to the second office.

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

3.12.3.3.5  (01-01-2014)
Accounts Over 999 Million Dollars

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Suspend the returns with action code 620 and route them via overnight mail to the following address:
    Accounting Control/Services Operation
    201 West River Center Blvd., Stop 21
    Covington, KY. 41011

    Note:

    Campuses that use CMODE in processing electronic returns refer all manual refunds to the parent campus of the return according to the file location code, or campus code, of the DLN. To that end those campuses print Section 01 of the return; note manual refund on the print; collect the prints; and fax them daily to the parent campus.

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.3.3.6  (01-01-2014)
Injured Spouse Allocation

  1. An "Injured Spouse" allocation request can be filed by one spouse to protect his or her share of a joint overpayment. Injured Spouse returns can be identified by one of the following:

    1. "Injured Spouse" written on the return.

    2. Form 8379, Injured Spouse Claim Allocation attached.

    3. Batched in Blocking Series 920–929 (Form 1040/A/EZ/X).

  2. Use the following table to determine procedures for handling "Injured Spouse" claims:

    If the return... Then...
    A] Has Blocking Series 920–929,
    1. Continue Processing.

    2. Leave Form 8379 or Form 1040X attached.

    B] Does not have Blocking Series 920–929 (found in regular block of work), SSPND 610 or 611 to have renumbered.

3.12.3.3.7  (01-01-2014)
Innocent Spouse Relief Request, Form 8857

  1. Taxpayers file Form 8857 to request relief from a tax liability for which they believe only the spouse should be held responsible. Three types of relief from joint and several liability are available.

    1. Innocent Spouse Election. An election made by a person who filed a joint return or filed a return as "married filing separately" in a community property state and later said that the understatement of tax on the return stems from the erroneous reporting of an item that belongs to the spouse, of which the claimant had no knowledge or reason to know and taking into account all the facts and circumstances, it would be inequitable to hold that person liable.

    2. Separate Liability Election. An election made by a person who filed a joint return and later claimed separate liability from their spouse. The claimant must be legally separated, living apart for 12 months or more, or no longer married to the spouse with whom he or she filed the joint return at the time the claim was filed.

    3. Equitable Relief. Request made by a person who filed either a joint return or a return as "married filing separately" in a community property state, and later claimed that taking into account all of the facts and circumstances, it would be inequitable to hold that person liable.

    Note:

    IRM 25.15 provides technical and procedural guidance.

  2. Taxpayers are instructed to file Form 8857, Request for Innocent Spouse Relief, to request relief if they are making the preceding claims.

  3. When the taxpayer attaches correspondence to the return and indicates "Innocent Spouse" , "Separate Liability Election" , "Equitable Relief" , "Joint and Several Liability" , or Form 8857 is attached to the return, enter 3 in Field 01CCC.

    Note:

    When multiple CCCs are present, CCC 3 must be entered first.

  4. Innocent Spouse Relief requests are processed in Cincinnati only. When the taxpayer attaches correspondence to the return that identifies him/her as a claimant or when Form 8857 is attached to the return:

    1. Detach the correspondence and Form 8857 and all supporting documentation.

    2. Edit working trails on the return and the correspondence and Form 8857.

    3. Prepare Form 4227, noting "Innocent Spouse Request," and attach it to the detached items.

    4. Give Form 8857 and all documents related to it—to your manager.

    5. Leave the return in the block and process as normal.

  5. Send all claims daily, via traceable mail, to the following address:
    Internal Revenue Service
    Stop 840F
    P.O. Box 120053
    Covington, KY 41012

3.12.3.3.8  (01-01-2014)
International Returns

  1. Treat any return with an address outside the 50 United States and District of Columbia as an international return.

    Note:

    This does not include APO/FPO addresses.

    Caution:

    Taxpayers may report income earned in a foreign country or through a business located in a foreign country. As long as the tax return has a domestic address and does not meet international criteria, the foreign income does not make it an international return.

  2. An international return can be identified by the presence of one of the following forms:

    1. An address outside the 50 United States and Washington, D.C.—with the exception of addresses for the Army Post Office, Air Force Post Office, or Fleet Post Office, usually abbreviated to APO or FPO.

    2. Form 1040 Guam

    3. Form W-2 from American Samoa (Form W-2AS)

    4. Form W-2 from Commonwealth of Northern Mariana Islands (Form W-2CM)

    5. Form W-2 from Guam

    6. Form W-2 from Puerto Rico (Form 499R-2 and Form W-2 PR)

    7. Form W-2 from United States Virgin Islands (V.I. Form W-2)

    8. Form 1040NR and 1040NR–EZ

      Caution:

      When Form 1040NR or Form 1040NR-EZ is attached to Form 1040, do not separate the forms. Keep the forms together and send them to AUSPC.

    9. Form 1040-PR, U. S. Self-Employment Tax Return (Including the Additional Tax Credit for Bona Fide Residents of Puerto Rico) (Spanish version)

    10. Form 1040-SS, U. S. Self-Employment Tax Return (Including the Additional Tax Credit for Bona Fide Residents of Puerto Rico)

    11. Form 1042-S, Form SSA 1042-S or Form RRB 1042-S

    12. Form 2555, Foreign Earned Income

    13. Form 2555-EZ, Foreign Earned Income Exclusion

    14. Form 4563, Exclusion of Income for Bona Fide Residents of America Samoa

    15. Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of Northern Mariana Islands

    16. Form 8288-A, Statement of Withholding Under Section 1446

    17. Form 8689, Allocation of Individual Income Tax to the United States Virgin Islands

    18. Form 8804, Annual Return for Partnership Withholding Tax Under Section 1446

    19. Form 8805, Statement of Withholding Under Section 1146

    20. Form 8813, Partnership Withholding Tax Payment

    21. Form 8833, Treaty-Based Return Position Disclosure

    22. Form 8898, Statement for Individuals Who Begin or End Bona Fide Residency in a United States Possession

  3. An International return can also be identified by the presence of one of the following on an IMF return:

    1. Notation of "Dual Status" .

    2. Taxpayer indicates exemption or exclusion of tax and/or income as a result of an international treaty (e.g., student treaty), article, or code (not IRC). This instruction does not apply to "American Indian Treaty" or similar statement.

    3. Indication of treaty trader or Fulbright grantee.

    4. Notation of Section 911, 931, or 933 of the Internal Revenue Code (IRC).

  4. Except in AUSPC use SSPND 651 to forward any international returns described in paragraph 1, 2, or 3 to AUSPC for immediate processing. In AUSPC use SSPND 610 to have such returns renumbered.

    Caution:

    Unless the return meets other international criteria, do not transship returns when the taxpayer has converted income paid in a foreign currency. The taxpayer may, for instance, earn income in Canadian dollars, convert it to U.S. dollars, and then and report it on the return in U.S. dollars.

3.12.3.3.9  (01-01-2014)
KITA: Killed in Terrorist Action

  1. Route all returns identified as "KITA/KIA" , "KITA-Oklahoma City" , "KITA-9/11" , or "KITA-Anthrax" to the KITA coordinator in Accounts Management for processing.

    Note:

    A list of current KITA/KIA coordinators can be found at the SERP home page under the tab Who/Where.

  2. If the taxpayer writes Sec 692(d)(2) on the "Other Payments" line (line 65 for 2001 and line 59 for TY 1995 returns only) of Form 1040 with a money amount to the right, Code and Edit should route to the KITA/KIA coordinators. Convert Form 1040A/EZ with Sec 692(d)(2) written anywhere on the return to a Form 1040 before sending the return to the KITA/KIA coordinator.

  3. If the KITA/KIA coordinator determines that the return does not qualify for KITA/KIA, the coordinator will attach a Form 4227 notating "Not eligible for KITA/KIA" to the front of the tax return. The Form 1040 will be returned to Code and Edit to complete processing. Code and Edit will "X" any amount on the return where the taxpayer has written "Section 692(d)(2)" .

    Note:

    If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), Code and Edit should "X" the amount claimed to the right of the "Other Payments" line.

  4. ERS should enter the computer's amount for tax in Field 0444V and assign TPNC 650.

    Note:

    "X" any amount claimed on the return for tax forgiveness under Section 692(d)2.

  5. If Code and Edit failed to identify a return as KITA/KIA, ERS should take the following action:

    1. Prepare Form 4227 stating KITA/KIA.

    2. SSPND 360 (other in-house research) and route the return to the KITA Coordinator.

  6. If the KITA Coordinator determines the taxpayer qualifies for KITA, the Coordinator will ship the return to the Kansas City KITA Coordinator.

  7. The KITA Coordinator will notify ERS Suspense when the return is routed to the Kansas City KITA Coordinator for processing. ERS should SSPND 640 (Suspense Reject 640) in order to remove the document from ERS inventory.

3.12.3.3.10  (01-01-2014)
Military Spouse Residency Relief

  1. For TY09 the IRS offers tax relief for civilian spouses of active-duty members of the uniformed services. The Military Spouse Residency Relief Act of 2009 grants an extension of time to pay the income tax until October 15, 2010, without penalty.

  2. To elect the extension, the taxpayers filing a joint return write the phrase MSRRA on the top of their tax return.

  3. Taxpayers who file under the filing status married filing separately have to attach the declaration below in addition to writing the phrase MSRRA on their return:
    I am claiming _________________ as my residence or domicile under the Military Spouses Residency Relief Act (MSRRA). Under penalties of perjury, I declare that I am qualified for relief under MSRRA because I am present in ______________ solely to accompany my spouse who is a servicemember serving in compliance with military orders, and my claimed residence or domicile is the same as my spouse’s residence or domicile.

  4. The declaration must be signed and dated by the taxpayer. Neither a stamped signature nor a faxed signature is permitted.

  5. Enter CCC M and P when the taxpayers request an extension under MSRRA and satisfy the requirements.

3.12.3.3.11  (01-01-2014)
Combat Zone Returns

  1. Members of the US armed forces paid by the US armed forces and serving in a combat zone or in a qualified hazardous duty area are entitled to an exclusion of wages earned in that zone and certain extensions of time for filing and paying. To identify that they are entitled to certain extensions of time, these taxpayers write the location or operation of the military endeavor on the top of their tax return.

    Note:

    Do not enter CCC "M" if the return is a Combat Zone return.

  2. Do not allow write-ins of income exclusions for combat zone pay. If the taxpayer excludes income earned in a combat zone, enter Y in Field 01CCC. Delete the exclusion on line 21 of Form 1040 or restore in full the wages on line 7 of Form 1040 or Form 1040A. Assign TPNC 165. Further instructions appear in EC 260.

    • Members of the U.S. armed forces serving in a defined combat zone or in direct support of one are entitled to an exclusion of all or a portion of their compensation received for active service in the armed forces of the United States. The Department of Defense excludes the eligible combat pay from the wages reported in box one of the Form W-2.

    • The taxpayer may not further reduce the wages.

    • This benefit is available only to members of the US armed forces.

    • Employees of firms under contract by the Defense Department may not exclude income earned in a combat zone.

  3. Take the following appropriate action when one of the military operations listed is noted on the return:

    If the taxpayer notes... And... Then...
    A] Operation Enduring Freedom
    Operation Noble Eagle
    Operation Iraqi Freedom:
    Egypt
    Jordan
    09/19/2001 and later
    03/19/03 to 04/20/03 (Egypt)
    03/19/03 and later (Jordan)
    Enter K in Field 01CCC.
    B] Bosnia
    Croatia
    Former Yugoslavia
    Herzegovina
    Joint Guard
    Macedonia
    Operations Allied Force
    Operation Joint Endeavor
    TY97 or later, Enter R in Field 01RPC.
    C] Former Yugoslavia TY94 and TY93, Enter D in Field 01CCC.
    D] Desert Storm (Persian Gulf area)
    Joint Forge
    Joint Guard
    Northern Forge
    Northern Watch
    TY90, Enter Z in Field 01CCC.
    E] Haiti
    Operational Uphold Democracy
    Operation GTMO
    TY94 and TY93, Enter D in Field 01CCC.
    F] UN Operation TY92, Enter D in Field 01CCC.
    G] Somalia TY93 and TY92, Enter D in Field 01CCC.

  4. Enter Y in Field 01CCC if the taxpayer notes a combat zone or tax period not listed in the preceding table.

    Note:

    Several military operations are covered under UN Operation notation. Refer to your Lead Tax Examiner, who will contact National Office.

  5. For further information about military returns, see EC 260.

3.12.3.3.12  (01-01-2014)
Natural Disaster and Emergency Relief Program

  1. The Natural Disaster / Emergency Relief Program provides relief from late filing and/or late payment penalties for taxpayers in declared disaster or emergency areas.

    1. The program coordinator will notify the campuses when an area has been designated for natural disaster or emergency relief.

    2. Disaster and emergency notifications will include the dates of the extensions of time to file returns and pay taxes.

    3. Taxpayers will be required to call to self-identify themselves as disaster filers.

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

3.12.3.3.13  (01-01-2014)
Conversion of Returns

  1. In some instances, it is necessary to convert a Form 1040A or Form 1040EZ to a Form 1040 to process it.

  2. Convert Form 1040A or Form 1040EZ to Form 1040 by using Action Code 610 for non-remittance returns and Action Code 611 for remittance returns.

  3. When working a converted return and a TPNC is required to resolve the error, assign TPNC 111 as the first notice code to inform the taxpayer that the return has been converted to a Form 1040.

  4. Use the following table to identify instances when it is necessary to convert a Form 1040A or Form 1040EZ to a Form 1040 in order for the form to be processed through the system.

    Exception:

    If missing information, correspond before converting the return.

    Exception:

    If Form 1099-MISC is attached with an amount in box 7 and no indication of whether the amount for non employee compensation is Self Employed Income, SSPND 211 for explanation of the amount.

    Condition Present or Claimed Form Type
    Additional Standard Deduction for Age/Blindness, Form 1040EZ
    Any line is used that is not a printed line (write-ins) or ERS input only field, Form 1040A/Form 1040EZ
    Community Property is indicated by the taxpayer, Form 1040EZ
    Dependent(s) claimed, Form 1040EZ
    Filing Status Code is other than 1 (single) or 2 (married filing joint), Form 1040EZ
    Gambling losses that are greater than the taxpayer's correct standard deduction amount, Form 1040A/Form 1040EZ
    Interest Income of greater than $1,500, or a negative interest amount, Form 1040EZ
    Prizes/awards over $1,000, Form 1040EZ
    Self Employment — Clear indication of self-employment income of
    • $434 or more if the EIC is claimed;

    • $2,000 or more, otherwise,

    Form 1040A/Form 1040EZ
    Social Security and Equivalent Railroad Retirement Benefits, Form 1040EZ
    Tax period less than 12 months, Form 1040A/Form 1040EZ
    Tax period is other than calendar year (month ending 12), Form 1040A/Form 1040EZ
    Tax period is earlier than 197212, Form 1040A
    Tax period is earlier than 198212, Form 1040EZ
    Taxable Income is $100,000 or more, Form 1040A/Form 1040EZ

  5. The preceding list is not all inclusive. Any time a Form 1040A/EZ is filed with a form or schedule that is applicable to Form 1040 exclusively (Schedule D attached to Form 1040A, for example), the return should be converted. See your Lead Tax Examiner for other miscellaneous situations.

  6. SSPND 640 to send return back to the originator (Accounts Management, Exam, etc.) when incorrect changes will make the return unprocessable or create an unpostable condition.

  7. SSPND 611 when Form 1040/A is filed for a deceased taxpayer and information on the return indicates that a Form 1041 (U.S. Fiduciary Income Tax Return) (Estate/Trust Return) should be filed.

    Note:

    For further information about renumbering remittance returns, refer to IRM 3.12.37.

3.12.3.3.14  (01-01-2014)
Misblocked Returns

  1. Form 1040 and Form 1040A identified as Injured Spouse returns should be batched together in blocking series 920-929. See IRM 3.12.3.3.6(2) to convert such returns.

  2. SSPND 211 for all missing information. Do not convert returns before corresponding.

    Note:

    For further information on renumbering documents, refer to IRM 3.12.37, IMF General Instructions.

3.12.3.3.15  (01-01-2014)
Prior-Year Returns

  1. The computer is programmed to perform calculations for the current year and the two prior years. Follow current-year procedures to resolve errors for these three years. Returns for TY10 and before require a manual computation. Follow the applicable prior-year procedures.

  2. Validity errors and math errors are identified and corrected in the same manner as with current-year returns, with some exceptions or variations. These exceptions or variations are listed in the section descriptions or located at the end of the error code.

  3. Use the following general guidelines when processing prior-year returns:

    1. Correct coding errors, transcription errors and misplaced entries in displayed fields.

    2. Always ensure the tax period is entered correctly.

    3. Use the prior-year tax form to verify an amount manually and give the taxpayer the most beneficial allowable tax computation.

    4. TPNCs 500 to 549 apply to prior-year situations only.

    5. Refer to Prior-Year Job Aid Book 2515–014.

3.12.3.3.16  (01-01-2014)
Re-Entry (Reinput) Returns

  1. Tax returns that are being put through the system again will generally have a Form 3893 attached indicating what, if any, actions were taken. The following are some of the reasons that documents will be re-entered or reinput:

    1. Withholding has been adjusted because of a prior refund.

    2. The period ending is being changed.

    3. An amended return is being changed to an original return.

    4. Filing Status is being changed.

    5. A CP 29 or CP 36 is attached.

    6. Substitute for Return (SFR) or has previously corresponded with the taxpayer.

    7. SSN / TIN change

  2. The following are general guidelines for working Re-entry returns.

    1. Do not change corrections shown in brown or red ink on the form/return.

    2. Do not correspond - SSPND 640 and return document to the originator when the return is unprocessable.

    3. Follow normal processing procedures when the originator states "process as an original return" .

  3. Assign Unallowable Code 79 to re-entry returns when the document is being re-entered because of a release credit.

    Note:

    Additional information can be found in IRM 3.12.37 , IMF General Information.

3.12.3.3.17  (01-01-2014)
Taxpayer Advocate Service

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. Refer to IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for a complete list of TAS Case Criteria.

  2. The National Taxpayer Advocate has reached agreements with the Commissioner of Wage and Investment (W&I), Small Business and Self-Employed (SB/SE), Tax Exempt and Government Entities, (TE/GE), Criminal Investigation, (CI) Appeals, and Large Business and International (LB&I) divisions. These Service Level Agreements (SLAs) outline the procedures and responsibilities for the processing of TAS casework when either the statutory or the delegated authority to complete a case transaction rests outside of TAS.

  3. The SLAs are located at http://www.irs.gov/uac/Taxpayer-Advocate-Service-Level-Agreements-(SLAs).

  4. A referral to a TAS office is not necessary even if TAS case criteria is met if an operating division or function can immediately resolve the issue within 24 hours. It is important that all IRS employees handle potential TAS cases with the taxpayer’s best interest in mind. More information on 24-hour same-day resolution can be found in IRM 13.1.7.4, Same-Day Resolution by Operations.

  5. If action can be taken within 24 hours to resolve the taxpayer’s issue, but the taxpayer requests TAS assistance or is not satisfied with the service provided, refer the taxpayer to the NTA toll-free number, 1-877-777-4778 or TTY/TDD 1-800-829-4059.

  6. If the IRS employee receives taxpayer contact that meets TAS criteria, and the employee cannot initiate action to resolve the taxpayer's inquiry or provide the relief requested by the taxpayer within 24 hours, refer the case to TAS. A taxpayer should not have to request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer to support the requested relief, or when required by the IRM.

  7. Taxpayers, their representatives, or IRS employees may complete Form 911, Request For Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), when a taxpayer meets TAS criteria. Refer Form 911 to the Local TAS Office within 24 hours of receipt. Refer to Exhibit 3.12.3-11, Attachment Guide, for procedures for routing Form 911 to the TAS Office.

  8. The following types of cases are exceptions to TAS criteria and should not be referred to TAS:

    • The taxpayer's complaint or inquiry only questions the constitutionality of the tax system.

    • Cases where the focus of the taxpayer's inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

3.12.3.3.18  (01-01-2014)
Economic Stimulus Payment Returns

  1. The IRS will send tax returns filed solely for the sake of claiming the Economic Stimulus Payment back to the taxpayers. Other tax returns for 2007 will be processed as regular returns.

3.12.3.3.19  (01-01-2014)
Electronic Returns

  1. Any processing center can process electronic returns with command code (CC) CMODE. CMODE allows an IDRS user access to different IDRS databases. To change modes, enter CMODE and a two-digit abbreviation for another campus. Refer to Job Aid Book 2515-013 for procedures for the use of CC CMODE.

  2. If you cannot close an electronic return and have to suspend it, create a paper trail by following these steps.

    1. GTSEC 01 of the return in question and print.

    2. Write the number of the action code used for suspension, the error code with the instruction for suspension, and the reason for the suspension on the print. Type or write the information on the print of section 01. For example:
      AC 211
      EC 118
      Correspond for Form W-2.

    3. Complete Form 6001, Correspondence Action Sheet, or Form 4227, Intra-SC Reject or Routing Slip, and attach it to the print of Section 01.

    4. Place the print in the area designated for electronic return suspense.

  3. If the IRM instructs you to assign a TPNC 100 create a paper trail by following these steps.

    1. GTSEC 01 of the return in question and print.

    2. Complete Form 12126 with the approved text of the TPNC 100 and any other TPNCs assigned to the return and attach it to the print of section 01.

    3. Place the print of section 01 in the area designated for electronic returns TPNCs 100.

  4. If a center has taken on some of the inventory of another center, the primary center must identify P&A contacts, establish communications, and arrange how and when the assisting center is to transfer suspended returns and/or returns with TPNC 100 to it. The transfer of suspended returns and/or returns with TPNC 100 must take place daily.

3.12.3.3.20  (01-01-2014)
Deceased Taxpayer

  1. If the return is filed by a spouse, personal representative (executor, administrator, fiduciary designee or trustee) or an individual other than the deceased taxpayer, you may have to request documentation to verify the legal right of the filer to submit the return on behalf of the dead taxpayer.

    1. If the surviving spouse filed the return (FSC 2), no documentation is needed.

    2. If a personal representative (executor, administrator, fiduciary designee, or trustee) files the return on behalf of the deceased taxpayer and the return shows a refund of $100 or more, a copy of the certificate showing the appointment must be attached. If the certificate is not attached, SSPND 211.

    3. All others filing on behalf of the deceased taxpayer must submit a completed Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, whenever the refund is $100 or more. Form 1310 is not required for a refund less than $100. If Form 1310 is required but missing or incomplete, SSPND 211.

      Note:

      To be considered complete, Form 1310 must meet the following three requirements.
      • It must be signed.
      • Question 2a and 2b in Part II must be answered with "no." If question 2a or 2b is answered with "yes" or left unanswered, correspond for a court certificate.
      • Question 3 in Part II must be answered with "yes" unless a court certificate is provided. If question 3 is answered with "no" or left blank and no court certificate is present, correspond for a court certificate that entitles the person to the refund.

    4. If the date of death is not present in the return, see IRM 3.12.3.60.3.3 (1) through (7).

  2. If the return is an economic stimulus return see IRM 3.12.3.3.18.

3.12.3.3.21  (01-01-2014)
Multiple Filers on the Same Return

  1. If filers report wages or other income or withholding that doesn't belong to the primary or secondary taxpayer, allow only the income and withholding for the primary or secondary taxpayer. Adjust the return and send TPNC 100 with this text.
    "We adjusted your tax return, allowing only the income and withholding from the primary and secondary taxpayer and excluding all other income and withholding. The other person(s) must file their own tax return to report their income."

  2. If the income and withholding you excluded belongs to a dependent for whom the taxpayer takes a dependent exemption, take the following actions:

    1. Detach income and withholding statements from the return.

    2. Edit in the left margin "Detached income/withholding document" as appropriate.

    3. Take detached documents to work leader. The work leader will complete Form 3699, Return of Documents to Taxpayer and mail back to the documents to the individual or to the taxpayer who filed the return..

  3. Do not otherwise return income and withholding statements.

3.12.3.3.22  (01-01-2014)
Tax Return for an ITIN, Income and Withholding Statements for SSN

  1. Some undocumented workers work under an SSN and receive income and withholding statements from employers in the name and SSN of the holder of the SSN, and they attach those documents to their tax return. They file their tax return under their name and ITIN. Accept these returns. Do not correspond because of the discrepancy between the name and SSN in the income and withholding statements and the name and ITIN in the return.

  2. Allow the income and withholding, and process the return according to procedures.

  3. Pursue discrepancies between the income and withholding statements and the corresponding figures in the return according to normal procedures. Do not consider the returns suspect unless they fit the description of a suspect return in IRM 3.12.3.3.4, Suspect Returns, or they meet other criteria for referral.

3.12.3.4  (01-01-2014)
Section 01, Entity And Miscellaneous Information

  1. Section 01 includes the following information.


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