Part 3. Submission Processing

Chapter 12. Error Resolution

Section 3. Individual Income Tax Returns

3.12.3  Individual Income Tax Returns

Manual Transmittal

October 24, 2012

Purpose

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

Material Changes

(1) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.3.4(5). Removed the instruction for SSPND 213.

(2) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.52.4(3). Added condition for tax year to instruction for correspondence for VIN. Section 67.

(3) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.53.4(3). Added condition for tax year to instruction for correspondence for VIN. Section 68.

(4) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.54.4(3). Added condition for tax year to instruction for correspondence for VIN. Section 69.

(5) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.72.1.5(2)D]. Revised the text of correspondence so that it agrees with the text of Letter 12C. EC 202.

(6) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.74.5.5(2). Changed field 2617 to 26FDD in paragraph 2 and the note to the paragraph. EC 242.

(7) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.77.17.3(4). Added instruction to correspond for the VIN missing from Form 8834, 8910, and 8936. EC 299.

(8) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.79.7.10(9). Added instructions, in new paragraph 9, for spousal payments of the FTHBC by married taxpayers filing separately. EC 330.

(9) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.79.10.8(6)a. Revised the text of correspondence so that it agrees with the text of Letter 12C. EC 336.

(10) IPU 12U1598 issued 09-17-2012. IRM 3.12.3.82.2.3(4)A]. Revised the text of correspondence so that it agrees with the text of Letter 12C. EC 370.

(11) IPU 12U1598 issued 09-17-2012. Exhibit 13.12.3-1. Added instructions for processing no-replies from AM.

(12) IPU 12U1518 issued 08-20-2012. IRM 3.12.3.58.7.3.1. Deleted paragraph 5, the instruction for removing the return from ERS with RJECT 640. EC 028.

(13) IPU 12U1518 issued 08-20-2012. IRM 3.12.3.58.7.3.2(2). Added an instruction for undeliverable mail received after ERS has archived a return. EC 028.

(14) IPU 12U1518 issued 08-20-2012. IRM 3.12.3.76.2.11(1). Added an instruction for figuring the AMT if a math error has occurred earlier in the return. EC 268.

(15) IPU 12U1518 issued 08-20-2012. IRM 3.12.3.81.6.4(1). Deleted the instruction for SSPND 213 for Form 2439 in the note and B] in the table. EC 348.

(16) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.4.3.20(3). Inserted a new instruction for a received date deemed invalid. Field 01RCD.

(17) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.59.3.5(2). Inserted a new instruction for a received date deemed invalid. EC 042.

(18) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.59.4.4. Inserted a new instruction for a received date deemed invalid. EC 044.

(19) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.61.1.3(3)B], Then. Added a reminder about the received date deemed invalid and corrected IRM reference. EC 062.

(20) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.61.2.3(2)B], Then. Added a reminder about the received date deemed invalid. EC 064.

(21) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.66.4.3. Deleted paragraph 4, the instruction for adding CCC G. EC 122.

(22) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.73.3.4. Corrected field 0312 in paragraph 5, changing it to 0321. EC 218.

(23) IRM 3.12.3.76.2.11(1). Changed tax year 2003 alone to the range 2003 to 2008 and added the instruction that examiners figure the AMT in case of an earlier math error. EC 268.

(24) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.78.2.24. Changed line 16 to 14 and 32 to 38 in paragraph 2. EC 302.

(25) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.79.6.6. Changed field 5813 to 5913 in paragraph 3F], Then. EC 329.

(26) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.81.6.7. Deleted "doesn't" from paragraph 3A], Then, 2. EC 348.

(27) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.81.8.10(8). Added the instruction that examiners figure the RRC after the phase-out begins. EC 350.

(28) IPU 12U1511 issued 08-15-2012. IRM 3.12.3.81.8.13. Deleted the note about international TPNCs from the list of allowable notice codes. EC 350.

(29) IPU 12U1511 issued 08-15-2012. IRM 3.12.3–1. Changed the divisor from .0765 to .0565 and reformatted the instructions. No reply, Form 1040, line 57.

(30) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.3.1.1. Removed the instruction for CCC G for returns that appear to be amended.

(31) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.3.1.2. Removed instructions for deleting duplicate returns, entering CCC G for duplicate returns, and suspending duplicate returns.

(32) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.3.4. Added Form 2439 and examples of its fraudulent use to the list of items to be referred to FRP.

(33) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.60.1.3. Removed instruction for CCC G for amended returns and deleting information after the received date. EC 048.

(34) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.63.5.3. Changed circular reference in paragraph 9 from paragraph 9 to paragraph 10. EC 088.

(35) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.63.6.3. Added the instruction that the examiner should delete the entry from field 1704B when the taxpayer doesn't qualify for the optional method of figuring the SE tax. EC 089.

(36) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.72.6.8. Removed the instruction to enter the figure on line 6b of Schedule F in field 1701B. EC 209.

(37) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.73.3.4. Added the instruction that examiners should remove income from Form 1099 from the entry on line 7 of Form 1040 or 1040A and enter it in field 0321 of Form 1040 or field 03OTI of Form 1040A. Added a reminder to have Form 1040EZ converted to a 1040 if the taxpayer reports such income on line 1 of Form EZ. EC 218.

(38) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.73.3.15. Provided a separate procedure for possible self-employment income according to the presence or absence of a claim for the EIC and distinguished other income from non-employee compensation reported with Form 1099-MISC. EC 218.

(39) IPU 12U1330 issued 07-05-2012. IRM 3.12.3.81.6.4. Added instructions for examiners to inspect Form 2439 for fraudulent use and the referral of suspect Forms 2439. EC 348.

(40) IPU 12U1330 issued 07-05-2012. IRM 3.12.3. Exhibit 1, No reply. Schedule C, statutory wages. Added an instruction that examiners should enter refigured earned income of one dollar or more in field 05EIV and enter RPC B if the refigured earned income is less than one dollar.

(41) IPU 12U1173 issued 06-04-2012 IRM 3.12.3.58.7.3.1. Added instructions for allowing withholding when IRPTR shows withholding and when IRPTR shows no withholding. EC 028.

(42) IPU 12U1173 issued 06-04-2012 IRM 3.12.3.65.5.3. Added an instruction for the examiner to delete RPC N if the taxpayer reports self-employment income with Form 8919. EC 088.

(43) IPU 12U1173 issued 06-04-2012 IRM 3.12.3.74.7.4. Added a caution to paragraph (5)h) that the examiner should look for misreported expenses subject to the two-percent floor or excessive gambling expenses before accepting the taxpayer's figure on line 29 of Schedule A or referring the return to Exam. EC 246.

(44) IPU 12U1173 issued 06-04-2012 IRM 3.12.3.77.3.8. Revised the instruction in paragraph 3 for figuring the credit for child and dependent care when the qualified expenses of the eligible child(ren) doesn't agree with the figure in field 2106>. EC 278.

(45) IPU 12U1173 issued 06-04-2012 IRM 3.12.3.79.7.10. Added instructions for requesting Form 5405 when the taxpayer appears to have disposed of the house. EC 330.

(46) IPU 12U1173 issued 06-04-2012 IRM 3.12.3.82.2.3. Added an instruction for the examiner to delete RPN N if the taxpayer reports self-employment income with Form 8919. EC 370.

(47) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.2.9. Added Form W-2 and 1099 to the list of forms with a tolerance that governs correspondence.

(48) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.3.8. Added a caution that foreign income alone doesn’t make a return international.

(49) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.4.3.2. Added an instruction for examiners in Austin to search with RTS for the primary taxpayer's ITIN.

(50) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.4.3.4. Added an instruction for examiners in Austin to search with RTS for the secondary taxpayer's ITIN.

(51) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.23.4.3. Added a description of a valid entry for the EIN and instruction for deleting an invalid entry. Form 4137.

(52) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.36.4.2. Replaced the instruction to delete the entry in Field 43NI1, 43NI2, or 43NI3 with an instruction for entering zero.

(53) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.37.4.23. Added the twenty credit-reduction states and the one credit-reduction territory.

(54) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.37.4.24. Added the twenty credit-reduction states and the one credit-reduction territory.

(55) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.49.4.3. Added a description of a valid entry for the EIN and instruction for deleting an invalid entry. Form 8919.

(56) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.58.7.3. Removed from EC 028 the requirement for the death certificate from paragraph 2 and the exception and added to the relevant sub-points of the paragraph the requirement for the death certificate.

(57) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.58.7.3. Added a new instruction for entering SPC 8 when the taxpayer replies that he did not file the return.

(58) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.58.7.3.2. Added to EC 028 an instruction for an insufficient reply from an ostensible spouse.

(59) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.63.5.2. Added field 03OTH to paragraph 1c. EC 088.

(60) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.63.5.3. Added a proviso for income earned in a foreign currency to paragraph 7 and 8 and added instructions for SE tax in connection with foreign earnings. EC 088.

(61) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.67.2.4. Changed line number of the account and routing number for Form 1040, 1040A, and 1040EZ in paragraph 3. EC 137.

(62) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.67.3.1. Added field 06DAN for Form 1040, 1040A, and 1040EZ to the list of displayed fields in EC 138.

(63) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.67.3.4. Changed line number of the account and routing number for Form 1040, 1040A, and 1040EZ in paragraph 2. EC 138.

(64) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.70.4.3. Added the twenty credit-reduction states and the one credit-reduction territory to EC 183.

(65) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.70.5.3. Added the twenty credit-reduction states and one credit-reduction territory and corrected line 17 to 15 in paragraph 6. EC 184.

(66) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.70.6.3. Added the twenty credit-reduction states and one credit-reduction territory to EC 185.

(67) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.70.7.3. Added the twenty credit-reduction states and one credit-reduction territory to EC 186.

(68) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.73.3.4. Added to EC 218 a reminder to enter SPC E if the taxpayer reports earnings from household employment.

(69) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.73.10.13. Added TY11 to the range of tax years in paragraph 1d.

(70) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.76.1.12. Corrected the IRM reference for Form 4972.

(71) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.77.6.5. Deleted redundant fragment, including the sane student, from paragraph 4. EC 284.

(72) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.77.9.3. Changed paragraph 4 to 5 in note to paragraph 4 and changed note to caution. EC 288.

(73) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.78.4.4. Changed the IRM reference in paragraph 8 to 3.12.3.78.2.6. EC 308.

(74) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.1.3. Removed the restriction to TY10 from paragraph 3. EC 320.

(75) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.3.3. Added a table of allowable differences for FUTA tax. EC 324.

(76) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.6.5. Corrected the IRM reference in paragraph 1.

(77) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.6.6. Changed TPNC 648 to 649 in paragraph 3 and replaced TPNC 100 with 649. EC 329.

(78) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.6.7. Inserted new text of TPNC 649. EC 329.

(79) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.7.10. Added incomplete Form 5405 to instructions in paragraph 6. EC 330.

(80) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.7.10. Changed 16 to 18 line and field numbers in paragraph 8. EC 330.

(81) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.10.3. Added to EC 336 a reminder to enter SPC E if the taxpayer reports earnings from household employment.

(82) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.10.5. Added an instruction for deleting the number of months when the EIC child fails the test for length of residency. EC 336.

(83) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.10.10. Added instructions for allowing and denying the EIC when the primary or secondary taxpayer's date of birth is missing. EC 336.

(84) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.11.3. Added instructions for allowing and denying the EIC when the primary or secondary taxpayer's date of birth is missing. EC 338.

(85) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.79.11.3. Added to EC 338 a reminder to enter SPC E if the taxpayer reports earnings from household employment.

(86) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.81.1.3. Added to paragraph 8 the further condition that the taxpayer is required to fill out Form 8812. EC 340.

(87) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.81.1.3. Added to EC 340 a reminder to enter SPC E if the taxpayer reports earnings from household employment and a reminder that those taxpayers won’t have a W-2 or report withholding for Social Security and Medicare on Form 8812.

(88) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.81.5.6. Changed 2010 to 2011 in paragraph 1, 2, and 3. EC 346.

(89) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.81.5.10. Added the year to 2008 to December 31 in the list of invalid dates for 200812 to 200911.

(90) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.81.8.4. Added an instruction not to allow the MWP credit for any other tax year besides 2009 and 2010 and to send TPNC 654 for a claim or other years. EC 350

(91) IPU 12U1136 issued 05-25-2012 IRM 3.12.3.82.2.3. Corrected Form 4136 to Form 4361 in paragraph 3B. EC 370.

(92) IPU 12U1136 issued 05-25-2012 IRM 3.12.3. Exhibit 1, No Reply. Added to line 7 of Form 1040 and 1040A and line 1 of Form 1040EZ instructions for searching for wages with IRPTR.

(93) IPU 12U1136 issued 05-25-2012 IRM 3.12.3. Exhibit 2, TPNCs. Revised the text of TPNC 649.

(94) IPU 12U0957 issued 04-27-2012 IRM 3.12.3.72.1.5 - Added an instruction to EC 202 for statutory wages reported on Schedule C but not supported by W-2 submitted in reply to correspondence.

(95) IPU 12U0957 issued 04-27-2012 Exhibit 3.12.3-1 - No reply, Schedule C. Added instructions for figuring qualified earned income and assigning a TPNC 100 when taxpayers do not reply to correspondence about statutory wages.

(96) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.2.9. Added Form 14039 to the list of exceptions in paragraph 3f.

(97) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.3.1. Added new paragraph (4) with instruction to process returns with the phrase PAO as original returns.

(98) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.4.3.22. Removed audit code X from the description of valid audit codes.

(99) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.4.3.23. Deleted from the description of the PTIN in paragraph (1) that in ERS the first character should be the number 9.

(100) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.36.4.6. Replaced three instances of RC in the note to paragraph 2 with MO.

(101) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.59.4.3. Corrected the IRM reference in paragraph 2A] and B] in EC 044 for the received date.

(102) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.62.4.3. Added to EC 078 an instruction for editing SPC 8 if taxpayer reply to correspondence that they did not file the return.

(103) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.66.2.4. In EC 118 corrected the IRM reference in paragraph 3.

(104) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.66.8.6. In EC 128 moved the instructions in (1)b), for the coding for the box at line 12, to the new paragraph (2) and deleted from paragraph (1) the instruction for corresponding when line 17 of Form 5405 is blank and the figure on line 18 is greater than $250.

(105) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.66.8.7. Changed the title of EC 128 to Line 17 and changed the reference to line 15 to line 17 and added a parenthetical remark that line 15 applies to TY10.

(106) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.71.3.3. Recast the instruction for verifying the taxpayer’s figure for the CTC and ACTC.

(107) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.72.1.5. In EC 202 added new procedures, D], to paragraph 2 for Schedule C with statutory and self-employment income.

(108) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.73.3.8. Added an instruction to EC 236 for examiners to send TPNC 120 if EC 218 reappears after they adjust Schedule A and the 1040 to accommodate negative state income tax on line 10 of Form 1040.

(109) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.73.4.3. Changed the tax period in paragraph 4 or EC 224 from 201012 to 201112.

(110) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.75.1.6. Added an instruction in EC 252 for TPNC 194 when FSC is 3 and spousal indicators for age or blindness are checked.

(111) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.75.1.16. Corrected IRM reference in paragraph 1B].

(112) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.76.1.6. Added an instruction to EC 265 for election 962.

(113) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.77.6.3. In EC 284 change the line number for Form 1040A from 43 to 40 in paragraph (3)A] and B] and added the letter V to the field 0449 and 0431 in paragraph (7)b).

(114) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.77.17.3. In EC 299 corrected the instruction in paragraph 3E to "more than $2,000."

(115) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.78.2.3. Added to EC 302 the instruction that the entry on line 4 of Form 8844 belongs in field 2226 and that line 10 of Form 8844 for TY10 and TY09 corresponds to line 4 of Form 8844 for TY11.

(116) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.79.3.3. Corrected misspelling in paragraph 2.

(117) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.79.8.3. Added tax period 201112 or later to ineligible years for MWP to EC 331.

(118) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.79.10.5. Added in EC 336 thee exceptions to the denial of the EIC in the table in paragraph 7 and revised the reason in paragraph 8 for sending TPNC 752.

(119) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.79.10.8 Expanded the procedures for correspondence in EC 336 for combined statutory and self-employment income.

(120) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.79.11.3. In EC 338 corrected the IRM reference in paragraph 1.

(121) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.1.3. Added a caution in EC 340 about Schedule C that reports statutory wages and self-employment income and a referral to EC 202.

(122) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.1.10. Added instruction to EC 340 for using TPNC for errors in figuring or transferring the ACTC.

(123) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.2.3(2). In EC 342 changed the line number for Form 1040A from 43 to 40.

(124) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.6.6. Added instruction to EC 348 for requesting Form 8801.

(125) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.6.7. In EC 348, in paragraph (3)A], Then, 2, changed line 5 to line 7 for TY11 and added line 5 for TY10 and line 7 for TY09.

(126) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.1.10. Added instructions to EC 340 for TPNC 295 when the taxpayer misfigures the Additional Child Tax Credit or transfers it incorrectly from Form 8812 to Form 1040 or 1040A.

(127) IPU 12U0854 issued 04-11-2012 IRM 3.12.381.8.9. Added an instruction to EC 350 for requesting Form 8801.

(128) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.81.11.7. In EC 360 corrected the IRM reference in paragraph 5 and 7.

(129) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.82.2.3. Expanded instructions for corresponding when taxpayers report statutory wages and self-employment income on Schedule C.

(130) IPU 12U0854 issued 04-11-2012 IRM 3.12.3.84.2. Replies to Correspondence. Added an exception to paragraph 3 concerning correspondence for the missing signature and the return processed date.

(131) IPU 12U0854 issued 04-11-2012 IRM 3.12.3. Exhibit 1, No reply to correspondence. Corrected the field reference from 0714 to 0715 in instructions for line 15 of Schedule A.

(132) IPU 12U0854 issued 04-11-2012 IRM 3.12.3. Exhibit 1, No reply to correspondence. Added instructions for no reply to correspondence about statutory wages and self-employment income on the same Schedule C.

(133) IPU 12U0854 issued 04-11-2012 IRM 3.12.3. Exhibit 3.12.3-6, Special Processing Codes. Expanded the definition of SPC 8 so that it includes the assertion of ID theft in response to correspondence.

(134) IPU 12U0854 issued 04-11-2012 IRM 3.12.3. Exhibit 3.12.3-7, Audit Codes. Removed audit code X and the description of it.

(135) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.3(3). Added Form 2439 to description of frivolous entitlement claims.

(136) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.4(1). Added Form 2439 to the list of suspect forms to be referred to FRP.

(137) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.4(3). Added Form 1099 the list of forms with excessive withholding.

(138) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.66.3.3(6)b). Changed the phrase less than $5 to $5 or less in EC 121.

(139) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.73.3.9(1)A]. Changed the word under to the phrase less than and the phrase Over $5,000 to $5,000 or more in EC 218.

(140) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.73.3.15(3). In EC 218 added an instruction that examiners look for an entry on line 21 of the return that should appear in field 0321.

(141) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.73.6.3(5). In EC 224 added tax year 2011 to the income thresholds.

(142) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.76.1.8(2). Added Form 1040 to the title of the section and removed the restriction to the use of paragraph 2.

(143) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.76.2.5(2). Inserted new paragraph 2 in explanation of the reduction of the exemption for the taxable income for the AMT in EC 268.

(144) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.76.2.5(3). Changed line number 29 to 28 for tax year 2011 and added income thresholds for tax year 2011 in EC 268.

(145) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.77.6.4(3). Provided instructions in EC 284 for figuring the tentative American opportunity credit when any student is not one of the four transcribed dependents or does not appear on Form 8863.

(146) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.77.6.5(2) & (3). Added instructions to EC 284 for figuring the lifetime learning credit when any student is not one of the four transcribed dependents or does not appear on Form 8863 and added a reminder about the inception of the American opportunity credit in tax year 2009.

(147) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.77.17.3(3)E]. Revised instruction in EC 2009 for mortgage interest credit for absent Form 8396.

(148) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.77.17.3(4)C], E], and G]. In EC 299 changed line numbers for Form 8834, Form 8910, and Form 8936.

(149) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.77.18.4C], E], and G]. In EC 300 changed line numbers for Form 8834, Form 8910, and Form 8936.

(150) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.78.1.6(1). In EC 301 added a tolerance for the entry in field 6516 and 6616.

(151) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.78.2.3(5). In EC 302 changed line numbers for Form 8834, Form 8910, and Form 8936.

(152) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.78.2.3(7)C]. In EC 302 changed field in section 22 for unidentified credit less than $500.

(153) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.78.2.23(6)A]. In EC 302. Added instructions for credits from a passive activity limited to zero.

(154) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.79.6.4(2). In EC 329 added instruction for adding section 58 or 59 for taxpayers who dispose of a house and check the box at line 12 of Form 5405.

(155) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.79.7.11(3). In EC 330 added instruction to remove uncollected tax from the entry in field 0460 in addition to moving the uncollected tax to field 04USS.

(156) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.79.8.3(9)a). In EC 331 corrected the IRM reference for manual calculation.

(157) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.79.10.5(8). In EC 336 revised the description of the conditions for TPNC 750.

(158) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.79.10.8(6). In EC 336 revised instructions for statutory income reported on Schedule C.

(159) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.81.2.3(5). In EC 342 added instructions for figuring the refundable education credit for students not among the transcribed dependents or not shown on Form 8863.

(160) IPU 12U0693 issued 03-20-2012 IRM 3.12.3.81.6.7. In EC 348 removed age requirements and added instructions for a claim for the additional retroactive credit.

(161) IPU 12U0693 issued 03-20-2012 IRM 3.12.3-1, Exhibit 2, No Reply. Added instruction for statutory income on line 1c of Schedule C.

(162) IPU 12U0693 issued 03-20-2012 IRM 3.12.3-2, Exhibit 2, TPNCs. Added TPNC 603.

(163) IPU 12U0693 issued 03-20-2012 IRM 3.12.3-8. Exhibit 8, Unallowable codes. Added the restriction that ERS examiners use unallowable code 34 only for an unallowable deduction of $1,500 or more.

(164) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.8.4.30. Added description of the code associated with each box of Form 8948.

(165) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.36.4.6. Added instructions for rounding partial months on line 6 of Schedule EIC.

(166) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.52.4. Added incomplete VIN to cause for correspondence.

(167) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.57.9.3(5). Replaced TPNC 289 with 750 in EC 019.

(168) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.58.7.3. Added new paragraph (2) to EC 028 in explanation of the purpose of the error code and its target.

(169) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.58.7.3(3). Changed request for the death certificate to request of a copy of the death certificate in EC 028.

(170) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.58.7.3.2. At EC 028 added phrase alpha file to remarks to be entered on Form 3210.

(171) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.61.4.3(2)D. Removed exception from the column Then.

(172) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.63.5.3(4)A, Then. Added divisor for TY11 and TY10 and before.

(173) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.66.2.4. Replaced RICS with AMTAP in paragraph (1) of EC 118 and described acceptable statement of income and withholding in paragraph (2).

(174) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.66.8.6. Refined instruction for SPC Z and 7 and corrected line numbers of Form 5405 in paragraph (1) of EC 128.

(175) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.74.2.3(6). In EC 236 provided a tolerance of four dollars.

(176) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.75.1.37(4). Changed TPNC 197 to 198 in EC 252.

(177) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.75.5.3(3). In EC 260 added instruction to delete CCC Y after write-ins for other taxes are entered into relevant fields.

(178) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.77.11.4. Deleted empty paragraph (2) in EC 291.

(179) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.77.17.3(3)B], And. Corrected IRM reference in EC 299.

(180) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.77.17.3(4)G], And and Then. Corrected line numbers for Form 8936 in EC 299.

(181) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.78.2.24(5)A], And, and (6)A], And. In EC 302 provided line numbers for TY11 on the one hand and TY10 and TY09 on the other.

(182) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.1.1. Removed PY from description of field 44TNT in EC 320.

(183) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.1.2(1)b). Replaced 4406 with 44TNT in EC 320.

(184) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.1.3(2). In EC 320 provided instructions for the use of field 44TNT.

(185) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.6.6(3)A], Then, and B],Then. In EC 329 provided instructions for sending TPNC 100 or 649.

(186) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.6.7. Corrected text of TPNC 649 in EC 329.

(187) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.7.10(5). Added instruction in EC 329 for retrieving information from the NAP and using TPNC 100.

(188) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.7.11. Added instruction in EC 330 for removing uncollected tax from total tax and added instruction for finding UT in MeF.

(189) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.7.17. Revised text of TPNC 649 in list of acceptable TPNCs in EC 330.

(190) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.8.3(10). In EC 331 limited instruction for correspondence for Schedule M to Form 1040 and 1040A.

(191) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.10.10(3). Replaced TPNC 289 with 750, 751, and 752 in EC 336.

(192) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.10.16. Deleted TPNC 289 from the list of allowable TPNCs for EC 336.

(193) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.79.11.8. Deleted TPNC 289 from the list of allowable TPNCs for EC 338.

(194) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.81.1.3(14). Corrected field 0465V to 0565V in EC 340.

(195) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.81.2.3(7). Moved note for IRSN into instruction in EC 342.

(196) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.81.2.3(8)A], And. Added condition for IRSN to EC 342.

(197) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.81.8.4(3). Added instruction for entering taxpayer's figure for MWP credit in field 05MWP in EC 331.

(198) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.81.8.10(2). Added a caution to paragraph (2) about revalidation after changing the tax year of the return.

(199) IPU 12U0512 issued 02-28-2012 IRM 3.12.3.81.8.13. Deleted TPNC 289 from the list of allowable TPNCs in EC 350.

(200) IPU 12U0512 issued 02-28-2012 IRM 3.12.3 Exhibit 3.12.3-1, No reply, line 56: SE tax. Added multiplier for TY11 and distinguished it from multiplier for earlier years.

(201) IPU 12U0512 issued 02-28-2012 IRM 3.12.3 Exhibit 3.12.3-1, No reply, Schedule EIC. Changed TPNC from 289 to 752.

(202) IPU 12U0512 issued 02-28-2012 IRM 3.12.3 Exhibit 3.12.3-2, TPNCs. Deleted TPNC 289.

(203) IPU 12U0512 issued 02-28-2012 IRM 3.12.3 Exhibit 3.12.3-2, TPNCs. Revised TPNC 649.

(204) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.75.5.3. Added an instruction to EC 260 for write-ins noted beside other taxes, replacing paragraph 7 with new paragraph 3.

(205) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.79.6.4. Revised the instructions for correspondence at EC 329 in the note to paragraph 3.

(206) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.79.7.3 - Added an instruction to EC 330 in new paragraph 5 for tax from Form 8889 included in other taxes on line 60 of the 1040 and a general instruction in new paragraph 6 for any write-in beside total tax.

(207) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.79.7.8. Removed instruction for correspondence for Form 5405 from EC 330.

(208) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.79.7.10. Removed from EC 330 the instruction for correspondence for Form 5405 and replaced it with instructions for creating Form 5405.

(209) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.79.7.11. Added instruction to EC 330 for the write-in OVDP.

(210) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.79.10.8. Added an instruction to EC 336 for unsupported statutory income reported on Schedule C.

(211) IPU 12U0378 issued 02-08-2012 IRM 3.12.3.82.2.3. Added an instruction to EC 370 for unsupported statutory income reported on Schedule C.

(212) IPU 12U0378 issued 02-08-2012 Exhibit 3.12.3-7. Added a description of the use of audit code X to exhibit 7, Audit Codes.

(213) IPU 12U0294 issued 01-31-2012 IRM 3.12.3.58.7.3. In EC 028 replaced paragraph Z of Form 6001 with paragraph 3 in (2) and deleted the phrase "or after" from (3).

(214) IPU 12U0294 issued 01-31-2012IRM 3.12.3.66.2.4. Inserted new paragraph 2 in EC 118 with instructions for corresponding for support before referring returns.

(215) IPU 12U0294 issued 01-31-2012 IRM 3.12.3.78.1.3. In EC 301 added the location of Part III of the amount on line 4h.

(216) IPU 12U0294 issued 01-31-2012 IRM 3.12.3.79.10.5. In EC 336 replaced TPNC 289 with TPNC 750, 751, or 752.

(217) IPU 12U0294 issued 01-31-2012 IRM 3.12.3.79.10.8. In EC 336 added a caution to paragraph 4 about evaluating the claim for referral to CI.

(218) IPU 12U0294 issued 01-31-2012 IRM 3.12.3.79.11.3. In EC 338 replaced TPNC 289 with 750, 751, or 752.

(219) IPU 12U0294 issued 01-31-2012IRM 3.12.3-2. Exhibit 2, Taxpayer Notice Codes. Added TPNC 750, 751, and 752 to the list of taxpayer notice codes.

(220) IPU 12U0187 issued 01-19-2012 IRM 3.12.3.2.2.2.5. Added a new section, Fields Not Visible in Error Codes.

(221) IPU 12U0187 issued 01-19-2012 IRM 3.12.3.58.7.3. Revised EC 028, removing instructions for requesting an ITIN, expanding instructions for evaluating replies, and adding procedures for no replies and undeliverable mail.

(222) IPU 12U0187 issued 01-19-2012 IRM 3.12.3.79.8.3. In EC 331 replaced Field 0563 (1040), 0540 (1040A), and 0508 (1040EZ) with Field 05MWP and Field 0563V (1040), 0540V( 1040A), and 0508V (1040EZ) with 05MWV.

(223) IPU 12U0187 issued 01-19-2012 IRM 3.12.3.79.10.16. At EC 336 added TPNC 750, 751, and 752 to allowable notice codes.

(224) IPU 12U0187 issued 01-19-2012 IRM 3.12.3.79.11.8. At EC 338 added TPNC 750, 751, and 752 to allowable notice codes.

(225) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.4.3.11 Added invalid conditions for Field 01SPC.

(226) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.6.4.1 Added instructions for Special Processing Code "E" .

(227) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4 Rewording of paragraph.

(228) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.1 Added new procedures for Field 2201.

(229) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.2 Added new procedures for Field 2202.

(230) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.3 Added new procedures for Field 2203.

(231) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.4 Added new procedures for Field 2204.

(232) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.5 Added new procedures for Field 2205.

(233) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.6 Added new procedures for Field 2224.

(234) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.7 Added new procedures for Field 2225.

(235) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.8 Added new procedures for Field 2226.

(236) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.9 Added new procedures for Field 2231.

(237) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.10 Added new procedures for Field 2236

(238) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.11 Added new procedures for Field 22IND.

(239) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.12 Updated title.

(240) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.13 Procedures for Field 22EZT.

(241) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.14 Updated procedures for Field 22WEL.

(242) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.15 Added new procedures for Field 22HIP.

(243) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.16 Procedures for Field 22CHS.

(244) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.17 Procedures for Field 22MDE.

(245) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.21.4.19 Updated procedures for Field 22TOT.

(246) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.36.4.6 Updated paragraph (2).

(247) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.3 Updated invalid conditions.

(248) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.1 Added procedures for new Field 7007.

(249) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.2 Added procedures for new Fields 70091, 70092, and 70093.

(250) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.3 Added procedures for new Fields 70111, 70112, and 70113.

(251) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.4 Added procedures for new Fields 70131, 70132, and 70133.

(252) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.5 Added procedures for new Fields 70134, 70135, and 70136.

(253) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.6 Added procedures for new Fields 70137, 70138, and 70139.

(254) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.55.4.7 Added procedures for new Field 7020.

(255) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.69.3.1 Changed Field 45PYT to 4506 in Fields Display.

(256) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.74.2.5 Add TY08 and prior procedures and revised old paragraph (3) (new (4) procedures.

(257) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.2 Updated paragraph (2)b).

(258) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.3 Added new procedures para 1.

(259) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.4 Correction to title made.

(260) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.12 Added procedures for Field 2201.

(261) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.13 Updated Field 2202 procedures.

(262) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.14 Updated Field 2203 procedures.

(263) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.15 Updated Field 2203 procedures.

(264) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.16 Updated Field 2203 procedures.

(265) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.17 Added new procedures for Field 2224.

(266) IPU 12U0116 issued 01-11-20121 IRM 3.12.3.78.2.18 Updated Field 2225 procedures.

(267) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.19 Added new procedures for Field 2226

(268) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.20 Added new procedures for Field 2231.

(269) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.21 Added new procedures for Field 2236.

(270) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.22 Updated procedures for Field 22TOT.

(271) IPU 12U0116 issued 01-11-2012 IRM 3.12.3.78.2.23 Added new procedures for Field 22IND.

(272) IPU 12U0116 issued 01-11-2012 Exhibit 3.12.3-4 Updated Computer Condition Code "H" .

(273) IPU 12U0116 issued 01-11-2012 Exhibit 3.12.3-6 Added Special processing Code E and R.

(274) Removed all references to Letter 4612c throughout the IRM.

(275) Removed all references to correspondence enclosures throughout the IRM.

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

(277) Updated the format and text.

(278) Updated all tax periods and received dates in various subsections.

(279) Updated the references to various subsections.

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

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

(282) Updated all EITC money amounts

(283) Deleted Special Processing Codes E, R, T, and V.

(284) Added Special Processing Code 9, for a return potentially part of OMM.

(285) Changed definition of Computer Condition Code H to mean that Form 8938 is attached.

(286) Added Audit Code X, for a return with an ITIN for primary or secondary taxpayer.

(287) Moved 01DTR and 01CEV to Section 02. New Fields 02DTR and 02CEV.

(288) Moved Field 01EMW to Section 05 and renamed it Field 05EMW.

(289) Updated Section 03 with new fields 03JDP and 03RTA.

(290) Updated Section 04 with new line numbers and/or field display changes.

(291) Updated Section 04 with new line numbers and/or field display changes.

(292) Updated Section 07. Schedule A, with new line number and/or field display changes.

(293) Updated Section 08 with a description of the codes in Field 08FAQ, Foreign Accounts Codes.

(294) Updated Section 09/10/11 for Schedule C with new line number and/or field display changes.

(295) Updated Section 12, Schedule D with new line number and/or field display changes.

(296) Updated Section 13, Schedule E with new line number and/or field display changes.

(297) Updated Section 14/15, Schedule F with new line number and/or field display changes.

(298) Updated Section 19, Form 1116 with new line number and/or field display changes.

(299) Updated Section 22, Form 3800 with new line number and/or field display changes.

(300) Updated Section 26, Form 4684 by new ERS input only Field 26FDD, Federal Declared Disaster Casualty and deleted Field 26DD correction procedures.

(301) Updated Section 36 by deleting Field 36TOB correction procedures

(302) Updated Section 38, Form 8839 with new line numbers and/or field display changes.

(303) Updated Section 39 with new line numbers, fields display changes, and deleted correction procedures for fields 3901A, 3901B, 3902A, and 3902C.

(304) Updated Section 43, Schedule EIC with new line numbers and/or field display changes.

(305) Updated Section 44/45, Schedule H with new line numbers and/or field display changes.

(306) Updated Section 48/49 for Form 8606 with new line number and/or field display changes.

(307) Updated Section 47, Schedule L to only be valid for prior year processing, TY10 and TY09.

(308) Updated Section 50, Form 8863 by adding new field 50NEV.

(309) Updated Section 58/59 for Form 5405 with new line number and/or field display changes.

(310) Deleted Section 63, Form 8941, Credit for Small Employer Health Insurance Premiums.

(311) Added new Section 64 for Form 5884-B, New Hire Retention Credit.

(312) Added new Section 65/66, Form 8941, Credit for Small Employer Health Insurance Premiums.

(313) Added new Section 67, Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit.

(314) Added new Section 68, Form 8910, Alternative Motor Vehicle Credit.

(315) Added new Section 69, Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit.

(316) Added new Section 70, Form 8867, Paid Preparer's Earned Income Credit Checklist.

(317) Deleted existing Error Codes 028, 030, 193, 199, 319, 328, and 347.

(318) Added new Error Code 028 and 301.

(319) Updated Error Code 070 with new line numbers and/or field display changes.

(320) Updated Error Code 072 with new line numbers and/or field display changes.

(321) Updated Error Code 073 with new line numbers and/or field display changes.

(322) Updated Error Code 074 with new line numbers and/or field display changes.

(323) Updated Error Code 088 with new line numbers and/or field display changes.

(324) Updated Error Code 116 with new line numbers and/or field display changes.

(325) Updated Error Code 118 with new line numbers and/or field display changes.

(326) Updated Error Code 121 with new line numbers and/or field display changes.

(327) Updated Error Code 122 with new line numbers and/or field display changes.

(328) Updated Error Code 123 with new line numbers and/or field display changes.

(329) Updated Error Code 126 with new line numbers and/or field display changes.

(330) Updated Error Code 128 with new line numbers and/or field display changes.

(331) Updated Error Code 159 with new line numbers and/or field display changes.

(332) Updated Error Code 165 with new line numbers and/or field display changes.

(333) Updated Error Code 168 with new line numbers and/or field display changes.

(334) Updated Error Code 174 with new line numbers and/or field display changes.

(335) Updated Error Code 197 with new line numbers and/or field display changes.

(336) Updated Error Code 202/502 with new line numbers and/or field display changes.

(337) Updated Error Code 204/504 with new line numbers and/or field display changes.

(338) Updated Error Code 206/506 with new line numbers and/or field display changes.

(339) Updated Error Code 208/508 with new line numbers and/or field display changes.

(340) Updated Error Code 214/514 with new line numbers and/or field display changes.

(341) Updated Error Code 222/522 with new line numbers and/or field display changes.

(342) Updated Error Code 225/525 with new line numbers and/or field display changes.

(343) Updated Error Code 226/526 with new line numbers and/or field display changes.

(344) Updated Error Code 228/528 with new line numbers and/or field display changes.

(345) Updated Error Code 236/536 with new line numbers and/or field display changes.

(346) Updated Error Code 242/542 with new line numbers and/or field display changes.

(347) Updated Error Code 252/552 with new line numbers and/or field display changes.

(348) Updated Error Code 260 with new line numbers and/or field display changes.

(349) Updated Error Code 264/564 with new line numbers and/or field display changes.

(350) Updated Error Code 268 with new line numbers and/or field display changes.

(351) Updated Error Code 270 with new line numbers and/or field display changes.

(352) Updated Error Code 274/574 with new line numbers and/or field display changes.

(353) Updated Error Code 278 with new line numbers and/or field display changes.

(354) Updated Error Code 282/582 with new line numbers and/or field display changes.

(355) Updated Error Code 284/584 with new line numbers and/or field display changes.

(356) Updated Error Code 288/588 with new line numbers and/or field display changes.

(357) Updated Error Code 291/591 with new line numbers and/or field display changes.

(358) Updated Error Code 294/594 with new line numbers and/or field display changes.

(359) Updated Error Code 297/597 with new line numbers and/or field display changes.

(360) Updated Error Code 299 with new line numbers and/or field display changes.

(361) Updated Error Code 300/600 with new line numbers and/or field display changes.

(362) Updated Error Code 302/602 with new line numbers and/or field display changes.

(363) Updated Error Code 308/608 with new line numbers and/or field display changes.

(364) Updated Error Code 310/610 with new line numbers and/or field display changes.

(365) Updated Error Code 319 with new line numbers and/or field display changes.

(366) Updated Error Code 320/620 with new line numbers and/or field display changes.

(367) Updated Error Code 322/622 with new line numbers and/or field display changes.

(368) Updated Error Code 324/624 with new line numbers and/or field display changes.

(369) Updated Error Code 326/626 with new line numbers and/or field display changes.

(370) Updated Error Code 327 with new line numbers and/or field display changes.

(371) Updated Error Code 329/629 with new line numbers and/or field display changes.

(372) Updated Error Code 330 with new line numbers and/or field display changes.

(373) Updated Error Code 331 with new line numbers and/or field display changes.

(374) Updated Error Code 332 with new line numbers and/or field display changes.

(375) Updated Error Code 3366/36 with new line numbers and/or field display changes.

(376) Updated Error Code 338/638 with new line numbers and/or field display changes.

(377) Updated Error Code 340 with new line numbers and/or field display changes.

(378) Updated Error Code 342 with new line numbers and/or field display changes.

(379) Updated Error Code 345 with new line numbers and/or field display changes.

(380) Updated Error Code 346 with new line numbers and/or field display changes.

(381) Updated Error Code 350/650 with new line numbers and/or field display changes.

(382) Updated Error Code 356 with new line numbers and/or field display changes.

(383) Updated Error Code 358 with new line numbers and/or field display changes.

(384) Updated Error Code 360/660 with new line numbers and/or field display changes.

(385) Updated Error Code 364 with new line numbers and/or field display changes.

(386) Updated Error Code 370 with new line numbers and/or field display changes.

(387) Updated Error Code 712 with new line numbers and/or field display changes.

(388) Updated Error Code 716 with new line numbers and/or field display changes.

(389) Rearranged 3.12.3-1, No Reply to Correspondence.

Effect on Other Documents

This IRM supersedes IRM 3.12.3, dated January 1, 2012.

Audience

IMF Error Resolution Departments, W&I Submission Processing Campuses

Effective Date

(01-01-2013)

Paul J. Mamo
Director, Submission Processing, SE:W:CAS:SP, Wage and Investment Division

3.12.3.1  (01-01-2013)
Introduction

  1. This section of the Internal Revenue Manual (IRM) 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 Forms 1040, 1040A and 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  (01-01-2013)
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, General Instructions — Contains general instructions for correcting records on the screen, document control, inventories and management reports.

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

    3. IRM 3.0.273, Administrative Reference Guide — Contains supplemental information that is common to all Part 3 IRMs.

      Note:

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

  4. The ERS Job Aid Book 2515–015 was developed as a reference guide for this manual. This manual refers the tax examiner to appropriate explanatory information or exhibits in the Job Aid. When a conflict between any reference or training material and this manual occurs, the manual instructions take precedence.

3.12.3.1.2  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
Julian Date

  1. A Julian Date is the numeric day of the year. For example, April 15, 2012, is Julian Date 106, the 106th day of 2012.

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

3.12.3.2.2.1.2  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
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 12C Letter to the taxpayer asking for additional information needed to continue processing their tax return.

3.12.3.2.2.2.2  (01-01-2013)
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, 2012.

    2. The received date of the return if April 22, 2012 and after.

    3. Tax period of return in YYYYMM format.

3.12.3.2.2.2.3  (01-01-2013)
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  (01-01-2013)
Signature Requirements

  1. An original signature is required, below the jurat (perjury statement), 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).

    Note:

    Accept a taxpayer's signature elsewhere on the return if the taxpayer has arrowed the signature to the appropriate area.

  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."

    • ELF 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.

  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.

    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. The return is "amended" , "corrected" , "revised" , "tentative" , or "superseding" .

    4. 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.

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

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

    7. Taxpayer has signed an attached CP59 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 CP59 or Letter 143C.

    8. "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.

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

    10. CCC "3" is already present.

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

3.12.3.2.2.2.5  (01-01-2013)
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  (01-01-2013)
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 when a return has a missing schedule.

3.12.3.2.2.2.7  (01-01-2013)
Money Fields

  1. For Forms 1040 and 1040A, ISRP will transcribe:

    1. All money fields from page 1 as dollars only.

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

    3. All Section 05 fields, and Total Tax from Section 04 as dollars and cents.

    4. All attachment schedules/forms as dollars only

    Note:

    ISRP will continue to transcribe all of Form 1040EZ as dollars and cents.

  2. Some of the fields that are transcribed as dollars only will display in ERS as dollars and cents (i.e., two zeros computer generated for cents).

  3. If any field displays with "**" , any correction to that field must be input as dollars only. If the field displays without "**" , the field must be input as dollars and cents.

3.12.3.2.2.2.8  (01-01-2013)
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. Entering Clear Code "C" 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  (01-01-2013)
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. A return (including an amended return) filed by a taxpayer with new address information.

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

3.12.3.2.2.2.10  (01-01-2013)
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 & Control Branch. Receipt & 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 & Control.

3.12.3.2.3  (01-01-2013)
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 ELF 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 July 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 IRMs 3.12.37, 2.3, and 2.4 and Job Aid Book 2515-015.

  2. When IDRS is unavailable, SSPND 351.

3.12.3.2.4  (01-01-2013)
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. Action Codes will generally be sufficient with no further explanations, when routing within the campus for in-house research.

  4. 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.

  5. 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 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

    .

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

  7. Enter CC RJECT to delete the ERS record from ERS Inventory and the Service Center Control File (SCCF). Only Action Codes 620, 630, 640, 650, 660 and 670 are valid with CC RJECT.

  8. 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  (01-01-2013)
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 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 (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  (01-01-2013)
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.

  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 ELF 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 ELF TPNCs 100.

    Note:

    When assisting a primary campus with ELF 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  (01-01-2013)
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  (01-01-2013)
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  (01-01-2013)
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 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:

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

    5. Enter all money amounts in dollars and cents when corresponding with taxpayers.

    6. Always select paragraph (i) 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 (i) 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.
      • the return includes Form 8839, Qualified Adoption Expenses.
      • the return includes Form 8948, Preparer Explanation for Not Filing Electronically.
      • the return includes Form 14039, Identity Theft Affidavit.

  4. 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.

  5. 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:

    1. W&I — 1–800–829–0922

    2. IMF SB/SE accounts — 1–800–829–8374

    3. Taxpayers with EINs — 1–800–829–0115

    4. Estates and Gifts — 1–866–699–4083

    5. Excise — 1–866–699–4096

    6. TE/GE accounts — 1–877–829–5500

    7. TAS — 1–877–777–4778, TTY/TDD — 1–800–829–4059.

3.12.3.2.9.1  (01-01-2013)
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 seven 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.

  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, a math error, or identify as an unallowable condition. 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  (01-01-2013)
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  (01-01-2013)
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, 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 record 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  (01-01-2013)
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.

    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.

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

  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  (01-01-2013)
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 490.

3.12.3.2.10.4  (01-01-2013)
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  (01-01-2013)
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 usually 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  (01-01-2013)
Special Procedures

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

    • Amended/Duplicate 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

    • Electronically Filed Returns (ELF)

    • Deceased Taxpayer

  2. Manual Refund — Any return hand walked 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 3.12.3.70.5.3 EC 260.)

3.12.3.3.1  (01-01-2013)
Amended and Duplicate Returns

  1. Taxpayers sometimes file amended returns with Form 1040, 1040A, or 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 TC150," "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.

3.12.3.3.1.1  (01-01-2013)
Amended Returns

  1. Consider a return amended if it meets any of the following conditions.

    • The word amended appears in the return.

    • The word corrected appears in the return.

    • The word revised appears in the return.

    • The word superseded appears in the return.

    • An IRS Notice attached to the return indicates a previous return was posted for the same tax period.

    • The only entries in the return are changes from the original.

    • The taxpayer states he or she has received a refund already.

    • Tax was paid with the original return.

  2. Look for a TC 150 with command code IMFOLT.

    Caution:

    Do not presume a TC 150 from the mere presence of the tax year in IMFOLI. Other TCs can open a module too. Always use IMFOLT to verify the TC 150.

    1. If a TC 150 for the tax year of the return has been posted, process the return according to the procedures below.
      • Do not enter CCC G.
      • Delete CCC G if it's present.
      • Do not correspond.
      • Send TPNCs for a no reply at any error code that appears in the return.

    2. If a TC 150 for the tax year of the return has not been posted, consider the return original and process it according to procedures.

    1. Enter G in Field 01CCC.

    2. Follow procedures for Error Code 048.

      Note:

      Do not correspond for missing information on amended returns.

3.12.3.3.1.2  (01-01-2013)
Duplicate Return

  1. Treat the return as a possible duplicate when any of the following notations or conditions are present:

    • The word amended appears in the return.

    • The word duplicate appears in the return.

    • The word substitute appears in the return.

    • The taxpayer submits only page 1 or 2 of the return.

  2. Look for a TC 150 with command code IMFOLT.

    Caution:

    Do not presume a TC 150 from the mere presence of the tax year in IMFOLI. Other TCs can open a module too. Always use IMFOLT to verify the TC 150.

    1. If a TC 150 for the tax year of the return has been posted, process the return according to the procedures below.
      • Do not enter CCC G.
      • Delete CCC G if it's present.
      • Do not correspond.
      • Do not delete the return.
      • Send TPNCs for a no reply at any error code that appears in the return.

    2. If a TC 150 for the tax year of the return has not been posted, consider the return original and process it according to procedures.

3.12.3.3.2  (01-01-2013)
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  (01-01-2013)
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.

  3. Some common examples of frivolous returns are listed below. This list is not all-inclusive but represents the current most common frivolous filings. See Exhibit 3.12.3-13, Frivolous Filer Definitions, for additional examples and complete descriptions.

    • Wages not income.

    • Wages of the primary taxpayer deducted on Schedule A or C.

    • Zero returns with and without refunds claimed.

    • Zero returns with and without Form(s) W-2 attached.

    • Zero or little income returns and Substitute Form(s) W-2, Form 4852, or corrected Form(s) 1099.

    • Altered Form or Jurat or a reference to UCC 1–207.

    • Entitlement refund requests. The filer asserts an exemption from taxation and requests a refund related to their birthright. These include Reparations for Slavery (40 Acres and a Mule, Black Investment Tax, African American Tax, etc.), Native American Indian Treaty, Bosnian Refugee, Daughters of the American Revolution, etc. Filers often use Form 2439 in aid of these frivolous arguments, and the suspect Form 2439 provides the source of the refund.

    • Constitutional amendment—1st, 5th, 13th, 16th, etc.—cited in defense of an assertion that the tax code is unconstitutional.

    • IRC cited in defense of exemption from taxation—IRC § 861, 1001, 1341, 3121, etc.

    • Taxes are voluntary; the IRS has no authority; the law does not require.

    • Not a person, not a citizen, untaxed.

    • Protest against government action or inaction.

    • Prisoner returns citing any frivolous argument.

    • Prisoner returns attaching calculations of income derived from work assignments within the prison and generally claiming a refund of withholding, perhaps supported by substitute Form(s) W-2)

    • Confused taxpayer filings—outlandish dollar amount on any line or nonsequential gibberish.

    • Form 2555 used on line 21 to eliminate income even though the taxpayer and employer are U.S. residents.

    Note:

    Any documentation attached to the return by Chief, Fraud Detection Center must remain attached to the return.

3.12.3.3.4  (01-01-2013)
Suspect Returns

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

      Example:

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

  6. The lists above are not exhaustive or final. Fraudulent returns are highly mutable. The filers adapt quickly to circumstances and adopt new practices. ERS examiners should refer suspect returns to AMTAP, 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 AMTAP or FRP before sending the suspect return to CI.

  7. 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  (01-01-2013)
Accounts Over 999 Million Dollars

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

  2. These returns should be SSPND 620 to be routed 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  (01-01-2013)
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  (01-01-2013)
Innocent Spouse Relief Request

  1. A taxpayer may make a claim of relief from joint and several tax liabilities in the following three ways:

    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 claimed that, the understatement of tax on the return was attributable to an erroneous item of the other 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/Form 8857 and all supporting documentation.

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

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

    4. Give the request to your manager.

    5. Leave the return in the block and continue processing.

  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  (01-01-2013)
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 W-2 PR)

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

    8. Form 1040NR and 1040NR–EZ

      Caution:

      When Form 1040NR or 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  (01-01-2013)
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 & 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 & Edit to complete processing. Code & 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 & 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 & 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  (01-01-2013)
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  (01-01-2013)
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 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 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 & 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 & 93, Enter D in Field 01CCC.
    F] UN Operation TY92, Enter D in Field 01CCC.
    G] Somalia TY93 & 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  (01-01-2013)
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  (01-01-2013)
Conversion of Returns

  1. In some instances, it is necessary to convert a Form 1040A or 1040EZ to a Form 1040 to process it.

  2. Convert Form 1040A or 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 1040EZ to a Form 1040 in order for the form to be processed through the system.

    Exception:

    If entering SSPND 211 for any missing information, then do not convert.

    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/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/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/1040EZ
    Social Security and Equivalent Railroad Retirement Benefits, Form 1040EZ
    Tax period less than 12 months, Form 1040A/1040EZ
    Tax period is other than calendar year (month ending 12), Form 1040A/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/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  (01-01-2013)
Misblocked Returns

  1. Forms 1040 and 1040A identified as Injured Spouse returns should be batched together in blocking series 920-929. See IRM 3.12.3.3.5(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, General Instructions.

3.12.3.3.15  (01-01-2013)
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. TY08 and prior returns require a manual computation. Follow prior-year procedures when applicable.

  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 and reject situations only.

    5. Refer to Prio-Year Job Aid Book 2515–014.

3.12.3.3.16  (01-01-2013)
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, General Information.

3.12.3.3.17  (01-01-2013)
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 & Investment (W&I), Small business & Self-Employed (SB/SE), Tax Exempt & Government Entities, (TE/GE), Criminal Investigation, (CI) Appeals, and Large & Mid-size Business, (LMSB) Divisions. These Service Level Agreements (SLAs) outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (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/foia/content/0,,id=170400,00.html

  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 Forms 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  (01-01-2013)
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  (01-01-2013)
Electronically Filed Returns (ELF)

  1. Electronically Filed Returns (ELF) can be processed at any SP campus using Command Code (CC) CMODE. CMODE allows an IDRS user to transfer access from one IDRS database to another. To change modes, enter CMODE and a two-digit acronym for another campus location. Refer to Job Aid Book 2515-015 for CC CMODE procedures.

  2. When the ERS Tax Examiner is unable to close an ELF Return and suspense is necessary, the TE must create a paper trail following the steps below:

    1. Enter GTSEC 01 of the return in question and print the entity screen display.

    2. Write the number of the Action Code used to suspend the case, the error code number where instructed to do so, and the reason for the suspense on the print out. For example, AC 211/ EC 118, correspond for Form W-2. This information may be typed on the Section 01 screen display before printing it out.

    3. Complete the appropriate form - Form 6001, Correspondence Action Sheet, or Form 4227, Intra-SC Reject or Routing Slip, and attach it to the Section 01 screen print.

    4. Place the Section 01 screen print in a designated area for ELF suspense.

  3. When the ERS Tax Examiner cannot close the case with a predefined TPNC and is instructed to assign a TPNC 100, the TE must create a paper trail following the steps below:

    1. Enter GTSEC 01 of the return in question and print the entity screen display.

    2. Complete Form 12126 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 ELF TPNCs 100.

  4. If a campus is assisting with the ERS inventory, the primary campus must identify P&A contacts and establish communications to arrange how and where the suspended cases and TPNCs 100 will be transferred to the primary campus. The movement of this work must be performed daily.

3.12.3.3.20  (01-01-2013)
Deceased Taxpayer

  1. If the return is being filed by a spouse, personal representative (executor, administrator, fiduciary designee or trustee) or an individual other than the deceased taxpayer, documentation may need to be attached to verify they have the legal right to file the return on behalf of the deceased 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) is filing 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 attach 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 "no." (If question 2a or 2b is answered "yes" or left unanswered, correspond for a court certificate.)
      • Question 3 in Part II must be answered "yes" unless a court certificate is provided. (If question 3 is answered "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 on the return, see IRM 3.12.3.55.4.3 (1) through (6).

  2. If the return is an Economic Stimulus Return see IRM 3.12.3.3.18.

3.12.3.4  (01-01-2013)
Section 01 Data—Entity And Miscellaneous Information

  1. Section 01 includes the following information.


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