3.21.15  Foreign Partnership Withholding

Manual Transmittal

November 07, 2014

Purpose

(1) This transmits revised IRM 3.21.15, International Returns and Document Analysis - Foreign Partnership Withholding.

Material Changes

(1) IRM 3.21.15.19.2.1(2) - Changed language to reflect a positive entry only on lines 4a and 4e.

(2) IRM 3.21.15.19.2.13(2) - Changed language to reflect a positive entry only on line 4m.

(3) IPU 14U0708 issued 04-16-2014 IRM 3.21.15.6(1) -- Revised the refund amount from ≡ ≡ ≡ to ≡ ≡ ≡ ≡ ≡ for Refund Returns 180-day Jeopardy.

(4) IPU 14U0606 issued 04-02-2014 Exhibit 3.21.15-2 -- Corrected prior line numbers.

(5) IPU 14U0606 issued 04-02-2014 Exhibit 3.21.15-3 -- Corrected prior line numbers.

Effect on Other Documents

IRM 3.21.15, dated October 26, 2013 (effective 01-01-2014), is superseded.

Audience

Wage and Investment Code and Edit Employees (Ogden Submission Processing Center (OSPC) Only)

Effective Date

(01-01-2015)

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

3.21.15.1  (01-01-2015)
Overview

  1. This IRM provides coding and editing instructions for processing Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), to the Business Master File (BMF). The first tax period valid for BMF is 200412.

  2. Form 8804 is processed under:

    • Tax Class 1

    • Master File Tax (MFT) Code 08

    • Doc. Code 29

    • Document Locator Number (DLN) File Location Code 60 (Ogden)

    • Blocking Series 000-999

    • Program Code 11340

  3. Form 8804 is processed at the Ogden Submission Processing Campus (OSPC) as a "Non-Remittance" return.

    Caution:

    Form 8804 no longer has the payment amount "green rockered" on it. The payments will be processed with a separate DLN with Doc. Code 17, 19, 70 or 76 and assigned a Trace ID and Transaction Sequence Number. These numbers will be posted to Master File.

  4. Form 8804 is due on or before the 15th day of the fourth month after the close of the partnership's taxable year. However, if the partnership keeps its books and records outside of the United States and Puerto Rico (this is indicated by a checkbox in the upper right corner of Form 8804), then the Return Due Date (RDD) is the 15th day of the sixth month after the close of the partnership's taxable year.

    Example:

    A calendar year return is due on April 15th.

3.21.15.1.1  (01-01-2015)
Form 8804 Background -- Annual Return for Partnership Withholding Tax under (Section 1446)

  1. Form 8804 was modified as a result of the Internal Revenue Code (IRC) 1446 Regulations modified Form 8804. This modification branched out the types of effectively connected taxable income (ECTI) allocable to a foreign partner from the highest rate applicable to the type of foreign partner to the highest rate applicable to the type of income allocable to that type of foreign partner. For corporate partners the rate remained unchanged at 35%. For partnership taxable years beginning in 2013 for non-corporate partners the rates are 39.6 % to 35%, 28%, 25% and 20% as long as the foreign partners provides the partnership with valid documentation (e.g. a Form W-8BEN) showing they qualify for the preferential rates.

  2. Under this IRC Regulation, there are two categories of income allocable to a foreign partner:

    • Income that is effectively connected with a trade or business in the United States,

    • Income that is not effectively connected with a trade or business in the United States

      Note:

      The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at the same rates that apply to U.S. citizens and resident aliens. Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate, and reported on Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons)

      .

  3. A partnership (not publicly traded) must make installment payments of withholding tax on its foreign partners' share of ECTI whether or not distributions are made during the year.

  4. The rules for making payments of amounts withheld under IRC Regulation 1441 for Fixed, Determinable, Annual, Periodical (FDAP) income apply to the amount of IRC Regulation 1446 tax withheld by publicly traded partnerships.

  5. The withholding tax rate on a partner’s share of ECTI is generally the highest marginal tax rate applicable to that type of taxpayer. The highest rate is currently 35% for all types of foreign corporate partners, as established by the Jobs and Growth Tax Relief Reconciliation Act (JGTRR) of 2003 Omnibus Reconciliation Act of 1993 and 39.6% for all other foreign partners, as established by the American Tax Relief Act of 2012.

  6. Recent IRC 1446 (26 CFR1.1146-1) Regulations modified Form 8804 so withholding tax is determined by applying to the partners allocable share of ECTI the highest tax rate applicable to the partnership's four types on income, if the partnership receives valid documentation (e.g. a Form W-8BEN) from a partner to which these rates apply. They are:

    • Net Ordinary Income, which is taxed at 35%

    • Gains allocated to non-corporate partners, which is taxed at 28%

    • Unrecaptured section 1250 gains allocated to non-corporate partners, which is taxed at 25%

    • Qualified dividend income and net long-term capital gains (including net section 1231 gains) allocable to non-corporate partners, which is taxed at 15%

  7. Form 8804 is due on or before the 15th day of the fourth month after the close of the partnership's taxable year. However, if the partnership keeps its books and records outside of the United States and Puerto Rico (this is indicated by a checkbox in the upper right corner of Form 8804), then the Return Due Date (RDD) is the 15th day of the sixth month after the close of the partnership's taxable year. Therefore, a calendar year return would be due April 15th, or June 15th, respectively.

3.21.15.1.1.1  (01-01-2015)
Form 8813 Background -- Partnership Withholding Tax Payment Voucher (Section 1446)

  1. Form 8813, Partnership Withholding Tax Payment (Section 1446) is the form used by the partnerships to make their quarterly installment payments. The four installment payments must be made with Form 8813 by the 15th day of the 4th, 6th, 9th and 12th months of the tax year, unless the payment is made through Electronic Federal Trust Payment System (EFTPS) or otherwise modified by published guidance. Effective 01/01/2004, all Form 8813 payments made for tax periods ending December 31, 2004, and subsequent, began to be processed to the Business Master File (BMF).

3.21.15.1.1.2  (01-01-2015)
Form 8804-C Background -- Certificate of Partner-Level Items to Reduce Section 1446 Withholding

  1. A foreign partner must use Form 8804-C to provide a certification to a partnership under IRC Regulation 1.1446-6 to reduce or eliminate the 1446 tax the partnership must withhold and pay on ECTI allocable to the foreign partner. The foreign partner uses Form 8804-C to certify to the partnership that it meets all the requirements of the regulations, and represents that the information provided, including filing requirements, is true, correct, and complete.

  2. Form 8804-C attached to Form 8804 or Form 8805: See IRM 3.21.15.1.1.4 and IRM 3.21.25.17.2 (1).

    Note:

    Each Form 8804-C should have a corresponding Form 8805 attached to Form 8804. Form 8804-C may be stapled to, or, loosely attached to the specific Form 8805. However, at times all of the 8804-Cs may come in grouped together behind Form 8804. If the Form 8804-C is not with the Form 8805, and the volume is 50 or less, attempt to locate the corresponding Form 8805 and follow the first row instructions in the table. Otherwise, do not worry about matching the Form 8804-C with the Form 8805. Instead, follow the second row instructions in the table.

    If... Then...
    An Form 8804-C comes in with an Form 8804 and a corresponding Form 8805 Detach Form 8804 and 8805h 8805 and 8804-C and leave action trail on both
    Form 8804-C is received attached to Form 8805,
    1. "DETACH" Form 8804-C from Form 8805 and edit an action trail on the Form 8805 "Detached 8804C. "

    2. Forward Form 8804-C to:
      Internal Revenue Service
      4-F23-142 Examination Branch
      2970 Market St.
      Philadelphia, PA 19104

    Form 8804-C is attached to Form 8804 and no Form 8805 are present that match the Form 8804-C,
    1. "DETACH"

    2. Forward Form 8804-C to:
      Internal Revenue Service
      4-F23-142 Examination Branch
      2970 Market St.
      Philadelphia, PA 19104

    3. Leave an action trail "Detached Form 8804-C" on Form 8804.

3.21.15.1.1.3  (01-01-2015)
Form 8804 (SCH A) Background -- Penalty for Underpayment of Estimated Section 1446 Tax by Partnerships

  1. Partnerships that have effectively connected taxable income (ECTI) allocable to foreign partners use Schedule A (Form 8804) to determine whether they are subject to the penalty for underpayment of estimated tax and, if so, the amount of the underpayment penalty.

  2. Generally, the partnership does not have to file this schedule because the IRS will figure the amount of the penalty and notify the partnership of any amount due. However, if the partnership completes this form and attaches it to Form 8804, then the penalty calculated by the taxpayer will be assessed.

  3. Generally, a partnership is subject to the penalty if it did not timely pay in installments at least the smaller of:

    1. The tax shown on line 5e of its 2013 Form 8804 or,

    2. The total section 1446 tax that would be due for 2012, , computed using the ECTI allocable to foreign partners for 2012 but without regard certificates to partners submitted on Form 8804-C. However, only if the total of the amounts shown on lines 4a, 4e, 4i, and 4m of its 2012 Form 8804 is at least 50 percent of the sum of the amounts shown on lines 4a, 4e, 4j, 4m, and 4q shown on its 2013 Form 8804 and the 2012 tax year was for a full 12 months.. See IRM 3.21.15.17(4) for processing instructions.

      Note:

      IRC Regulation 1.1446-3(b)(3)(i)(A), provides that when calculating the prior year safe harbor amount, the partnership cannot take into account IRC Regulation 1.1446-6. See IRM 3.21.15.11.2.

3.21.15.1.1.4  (01-01-2015)
Form 8805 Background -- Foreign Partner’s Information Statement of Section 1446 Withholding Tax

  1. Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, is filed for each foreign partner to show the amount of effectively connected taxable income allocated, and the total tax credit allowed to a foreign partner.

  2. Generally, you may find there are two types of Form 8805 attached to a Form 8804.

    • A Form 8805 attached to Form 8804 substantiating the Section 1446 withholding claimed on Line 6b, must remain attached to Form 8804.

      Note:

      This type of Form 8805 shows the partnership entity information on Lines 1 and 2.

    • A Form 8805 submitted with Form 8804 reflecting the amount of income and withholding allocated to a foreign person. See IRM 3.21.15.1.1.4 (3).

      Note:

      This type of Form 8805 shows the partnership entity information on Lines 5a and 6.

  3. The Form 8805 matching the second bullet description in paragraph (2) above, is to be detached from Form 8804 and forwarded to Batching and Numbering for assignment of its own Document Locator Number (DLN). See IRM 3.21.15.1.1.2 (2).

    Note:

    See IRM 3.21.25.17 (3) and 3.21.25.17.2 (1) u. for processing Form 8805 to the International Web Applications Database (INTL WebApps), and the handling of Form 8804-C when attached to Form 8805.

  4. IRC 1446 Regulations modified Form 8805 to add Schedule T "Beneficiary Information." Schedule "T" is not a separate page but consists of (new) Lines 11a - 13 on the front of Form 8805. Schedule "T" is to be completed by an estate or trust receiving Form 8805 (with Lines 1a through 10 already completed) to reflect the ECTI and withholding on lines 9 & 10 allocable to a beneficiary.

3.21.15.2  (01-01-2015)
♦Restructuring and Reform Act of 1998, Section 3705(a) -- IRS Employee Contacts♦

  1. Background: The Restructuring and Reform Act of 1998, Section 3705 provides identification requirements for all IRS employees working tax related matters.

  2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact.

    Note:

    "As a general rule, do not give out another employee's name or telephone number. If the taxpayer or representative needs to speak to another employee or manager, offer to take the taxpayer's/representative's number and have the requested employee call them back."

  3. Contact Procedures are contained in the following eight paragraphs.

  4. All IRS employees, in the field, and national office, who communicate, by telephone, correspondence or face to face, with taxpayers, or their personal representatives, on tax-related matters are required to provide (at a minimum) the following information:

    • Your title (e.g., Mr., Mrs., Ms., Miss)

    • Your last name

    • Your Identification Card (badge) Number

  5. All correspondence must include a telephone number where the taxpayer’s question can be answered. In addition, manually generated and handwritten correspondence must include:

    • Your title (e.g., Mr., Mrs., Ms., Miss)

    • Your last name

    • IDRS, letter system, or ID card (badge) number

  6. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID card (badge) number must be used.

  7. When a taxpayer requests to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer’s inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

  8. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information.

  9. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  10. It is not necessary to repeat the ID card number (badge) on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) their ID card (badge) number on the first contact.

  11. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Also, before leaving a message on a taxpayer’s answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail.

3.21.15.3  (01-01-2015)
♦Taxpayer Advocate Service (TAS)♦

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) or has Form 911 attached and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.

    Exception:

    The Taxpayer Advocate Service (TAS) organization is not a point of filing and TAS employees have not been delegated the authority to accept returns for filing. Treat all TAS Received Dates as invalid by circling them and edit the received date according to instructions.

3.21.15.3.1  (01-01-2015)
♦TAS Service Level Agreements (SLA)♦

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage & Investment (W&I) Division, Small Business & Self-Employed (SB/SE) Division, Tax Exempt & Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals and Large Business & International (LB&I) Division, that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs are located at http://tas.web.irs.gov under the heading "Policy/Procedures/Guidance."

3.21.15.4  (01-01-2015)
♦Use of FAX for Taxpayer Submissions♦

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code & Edit examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3 , "Required Taxpayer Authentication " and IRM 21.1.3.2.4,"Additional Taxpayer Authentication." Also, before leaving any messages on a taxpayer’s answering machine, review IRM 11.3.2.6.1," Leaving Information on Answering Machines/Voicemails." Fax procedures contained in IRM 11.3.1.11 ,"Facsimile Transmission of Tax Information" , must be reviewed prior to faxing confidential information to the taxpayer.

3.21.15.5  (01-01-2015)
General Disclosure Guidelines

  1. IRC 6103 establishes the taxpayer's (T/P's) right to privacy of tax information. You must be sure that you provide correct information to the correct T/P or authorized representative (check IDRS CC CFINK for POA).

  2. Taxpayer returns and return information must remain confidential as provided for in IRC 6103,Confidentiality and disclosure of returns and return information. IRC 7431 provides civil damages for unauthorized disclosure of returns and return information. IRC 7213 and IRC 7213A provide criminal penalties for unauthorized disclosure or unauthorized inspection of returns and return information and require employees be discharged from duty if charged and convicted of these offenses.

  3. For more information on General Disclosure Guidelines refer to IRM 21.1.3,Operational Guidelines Overview and for full discussions refer to IRM 11.3.1 (Introduction to Disclosure).

3.21.15.6  (04-16-2014)
♦Refund Returns 180-Day Jeopardy/Million Dollar Refunds♦

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

    Note:

    Expeditious processing of refund returns is critical if the 180-day period is about to expire.

    If... Then...
    A refund return is batched in a non-refund batch,
    1. Completely edit the return.

    2. Pull the return from the non-refund batch using local procedures.

    Note:

    Follow the instructions below when the processing date is more than 155 days after the Received Date or the return due date or the refund is $1,000,000 or more.

    The processing date is more than 155 days after the Received Date or the return due date (whichever is later) and the refund is $25,000 or more,

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.

    1. Edit CCC "U."

    2. Give the return to the manager.

    There is an amount on Line 6a, it cannot be computed using the 180-day rule. If the processing date is more than 20 days after the Received Date or the return due date (whichever is later) and the refund is $25,000 or more,

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.

    1. Edit CCC "U."

    2. Give the return to the manager.

    The refund is $1,000,000 or more,

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.

    1. Do not leave the return in the block.

    2. Edit CCC "U" on numbered and unnumbered returns.

    3. Give the return to the manager.

    The W&I Submission Processing Liaison for TAS issues, walks a return through Code & Edit, In addition to normal editing, perform the actions below:
    1. Edit CCC "O" to freeze the refund only if TAS is issuing a manual refund.

    2. Edit CCC "Y" to send the return to Error Correction Unit (ERS).

3.21.15.7  (01-01-2015)
♦BMF Consistency♦

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

  2. Topics for the BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF Code & Edit/ERS.

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

  4. Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

3.21.15.8  (01-01-2015)
General Editing Guidelines

  1. The following general information can be used when editing Form 8804 returns.

  2. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.

  3. All money amounts must be entered in U.S. dollars only.

  4. Round the filer's dollar and cents entry to the nearest whole dollar and edit the "rounded" amount above or to the left of the deleted entry.

  5. Money amounts can be either a positive or negative number.

  6. Do not bracket negative amounts on Lines 4b, 4c, 4f, 4g, 4j, 4k, 4n, 4o, 4r and 4s because the 8804 return has pre-printed brackets/parenthesis on these lines.

  7. You must place a bracket/parenthesis on the following lines if the entry appears as a negative without brackets/parenthesis. The lines are 4a, 4d, 4e, 4h, 4i, 4l, 4m, 4p, 4q and 4t.

3.21.15.8.1  (01-01-2015)
♦Edit Marks♦

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

  2. The only items edited on the return are those to be transcribed except where specific instructions require editing of a non-transcribed item. Lines are left blank if the entry would be a zero amount unless otherwise instructed.

  3. The original entry on a return is never obliterated, altered or erased when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

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

    Edit Mark Description
    "X" or The "X" is used to delete tax data or to indicate that an item is not to be transcribed.
    "/" A "/" can be used when deleting a form or schedule not being transcribed.
    "//$" The "//$" is used in the entity area to identify the beginning and ending of a foreign country code. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany" .
    "c/o" or "%" Indicates an "in-care of" name for transcription.
    Circle Indicates that an entry is not to be transcribed. Also used to delete Entity data or a Received Date.

    Note:

    If the taxpayer circles an entry, edit the entry.

    Underline Indicates that an entry is to be transcribed (e.g., Name Control, Tax Period and a Received Date that is other than an IRS stamped date).
    Arrow Indicates the correct placement of a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note:

    A double arrow may be used if the same figure is to be transcribed in two different places (along with any required transcription data between the two arrows).

    Check Mark Indicates that an entry has been manually math verified and is correct.
    Bracket/Parenthesis Indicates a negative numerical amount.

    Note:

    Code and Edit is no longer required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly indicates a negative amount with brackets (-) sign. It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.)

    Vertical Line or Decimal Point Indicates the separation of dollars and cents if no distinction has been made by the taxpayer.
    Zero, Dash or None "ZERO" , "DASH" or "NONE" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by Other IRS Functions Edit marks entered by other areas, such as Collection or Accounts Management, are not to be reedited except to place the marks in the correct area.
    Rocker Indicates the amount paid when drawn under a remittance amount.

3.21.15.8.2  (01-01-2015)
♦Action Codes♦

  1. Action Codes are used to indicate whether correspondence, research or some other action is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory.

    Note:

    Computer Condition Codes (CCC) are used in lieu of Action Codes in processing Form 8804.

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

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

  4. Assign Action Codes in the following priority:

    1. Action Code 310 (Statute Control).

    2. Action Code 320 (Entity Control)

    3. Action Code 4XX.

    4. Action Code 6XX.

    5. Action Code 3XX.

    6. Action Code 2XX (Correspondence)

      Exception:

      Use Action Code 211, 215, 225, or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.

  5. Attach Form 4227 (Intra-SC Reject or Routing Slip) when more than one Action Code is needed. Edit the second Action Code on Form 4227.

  6. If more than one Action Code of the same priority is required (e.g., 215 and 310) edit the Action Code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition.

  7. The following Action Codes are used in processing International returns. Edit the following International Action Codes when a return cannot be perfected from the information present:

    Action Code Description Workday Suspense Period
    215 (First Correspondence)
    • Return is so illegible, incomplete or contradictory that it is not acceptable for computer processing

    • The Foreign Partnership notates on the return or attachment that they are reporting tax for more than one Tax Period or for more than one type of tax.

    45
    226 (Missing Signature International Correspondence) Unsigned foreign return (only issue for correspondence). 45
    480 (Early Filed-Suspense) The return is an early-filed return. 150
    610 (Renumbered non-remittance) or 611 (Renumbered with-remittance) A return mis-blocked (e.g., Form 1065 is found in an 1120 batch of work). 0
    650 (International) The return is an international return and must be forwarded to OSPC. 0
    640 (Void) To delete the assigned DLN on the return (e.g., Re-entry Returns). 0
  8. Continue perfecting the return after editing the Action Codes.

  9. The following valid Action Codes are for domestic use:

    Action Code Description Workday Suspense Period
    211 First Taxpayer Correspondence 40
    212 Second Correspondence 25
    215 International Correspondence 45
    225 Taxpayer Correspondence (Signature Only) 40
    226 International Correspondence (Signature Only) 40
    310 Statute Control 10
    320 Entity Control 10
    331 Frivolous Review 10
    341 Manual Refund 10
    342 Credit Verification 10
    343 Black Liquor 10
    352 Name Research 3
    360 Other-in-House Research 10
    420 Management Suspense A 5
    440 Managers Suspense 15
    480 Early Filed Suspense 150
    610 Renumber - Non-remit 0
    611 Renumber – Remit 0
    640 Void 0
    650 International 0

3.21.15.9  (01-01-2015)
Unprocessable Conditions

  1. A return must contain the following specific items before it is considered processable. If they are not present and cannot be found on the return or its' attachments, then edit CCC "U" or the appropriate Action Code to send the return to Rejects. Rejects will research IDRS, to locate the information in order to make the return processable.

    • An Employer Identification Number (EIN)

    • A legible name (for the Name Control)

    • A valid Tax Period (200412 and subsequent)

  2. Conditions which make a document unprocessable and will require Rejects to correspond with the taxpayer:

    • The name is so illegible or incomplete that the Name Control cannot be determined.

    • The EIN contains other than nine numeric characters and cannot be perfected from information on the return or attachments.

    • The document has more than one ElN.

    • The filer has stated that they have combined information for more than one tax period or more than one type of return.

    • Data entries are so incomplete or illegible that they cannot be perfected or transcribed.

    • The document has been mis-blocked.

    • The return is unsigned.

    • The return has only entity data and no other statements or attachments from the taxpayer.

    • Any condition set forth as unprocessable in the sections on processing specific documents.

  3. Numbered and unprocessable Form 8804 (includes timely filed, delinquent, refund, balance due and zero balance returns):

    1. Edit CCC "U" or the appropriate Action Code. See IRM 3.21.15.17 for computer condition codes.

    2. Prepare correspondence action sheet for Letter 3104C (FIRPTA and Foreign Partnership Withholding Tax Return Processing and Unsubstantiated Refundable Cr).for the required information using the appropriate letter paragraphs.

    3. Leave return in pack of work.

3.21.15.9.1  (01-01-2015)
Pre-Master File Processing of Form 8804

  1. Numbered Form 8804: Reject any Form 8804 filed for tax period ending November 30, 2004, (200411) and prior.

    Rejection Action:

    1. Edit CCC "U."

    2. Prepare Form 4227, Intra-SC Reject or Routing Slip with the explanation "NMF 8804 Return Tax Period 200411 and Prior." Transship to Cincinnati Submission Processing Campus (CSPC) Non-Master File (NMF) Accounting, Stop 21 Team 104, and staple it to the face of the document.

    3. Continue editing the entire return, and make sure the correct Form 8805s are detached from the 8804 and entered into the INTL WebApps Db.

      Note:

      Rejects or Unpostables will transship the return to CSPC.

  2. Unnumbered Form 8804: Transship all unnumbered Form 8804 returns filed for tax period ending November 30, 2004, (200411) and prior.

    Transshipping Action:

    1. Prepare Form 3210, Document Transmittal and write "NMF 8804 Return Tax Period 200411 and Prior" in the remarks section of the transmittal. Address the document transmittal to:

      Internal Revenue Service
      Attn: CSPC - NMF Section Stop 21 Team 104
      201 West Rivercenter Blvd.
      Covington, KY 41019

    2. Also, prepare Form 4227, Intra-SC Reject or Routing Slip with the following reason in the remarks area; "NMF 8804 Return Tax Period 200411 and Prior" and staple it to the face of the document.

3.21.15.10  (01-01-2015)
♦Correspondence♦

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

    Exception:

    Do not correspond on returns prepared by Collections,IRC Regulation 6020(b) or by Examination, "Substitute for Return (SFR)" .

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

    If... And... Then...
    Correspondence is needed Requires a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (Letter 86C, Letter 854C, etc...), Master File Tax (MFT), and the appropriate paragraphs.

      Note:

      Within these paragraphs, there may be Fill-ins that the tax examiner will be required to enter, such as, tax period, form number, DLN, etc...

    2. Attach the Correspondence Action Sheet to the front of the return below the Entity area.

    3. Edit CCC "U."

    4. Continue editing the return.

    5. Leave the return in the batch.

    See IRM 3.21.15.9.
    Correspondence is needed Does not require a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (Letter 86C, Letter 854C, etc...), Master File Tax (MFT), and the appropriate paragraphs.

      Note:

      Within these paragraphs, there may be Fill-ins that the tax examiner will be required to enter, such as, tax period, form number, DLN, etc...

    2. Photocopy and attach the Correspondence Action Sheet below the Entity area on the front of the return. Be sure the name and address shows clearly above the approved Correspondence Action Sheet.

    3. Forward the copy to the Correspondence area.

    4. Edit an Action Trail (e.g., 3104C SENT ) in the lower left corner going vertically up the side of the return.

    5. Finish editing the return and leave in batch.

    Note:

    There may be additional letters that are exclusive to the tax examiner's campus. These letters are for specific forms or conditions where it was deemed necessary for processing. The tax examiner should go to his or her lead or manager for copies of these letters to facilitate processing.

3.21.15.10.1  (01-01-2015)
♦Correspondence Imaging System (CIS) Returns♦

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Account Management (AM) receipts into digital images and working the cases from those images.

  2. "CIS" returns are identified with "CIS Image-Do not correspond for Signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Verify all edit marks on a "CIS" return.

    If... Then...
    The edit marks are black, Underline the edit mark if correct or circle if incorrect.
    The edit marks are red or green, Circle if incorrect.
  4. Follow the instructions below for processing "CIS" returns:

    If... And... Then...
    The "CIS" return has a Form 13596 attached

    Note:

    If there is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), do not route the return to Accounts Management. Continue processing the return.

    The return is not complete (e.g., missing signature, schedules or forms) Remove the return from the batch and route to Accounts Management.

    Note:

    Do not correspond for missing information on "CIS" reprocessable/reinput returns.

    The "CIS" return does not have a Form 13596 (Reprocessing Returns) attached The return is not complete (e.g., missing signature, schedules or forms) Follow normal correspondence procedures.

3.21.15.10.2  (01-01-2015)
♦Foreign Currency♦

  1. For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in Letter 3104C to resubmit in U.S. currency.

3.21.15.11  (01-01-2015)
Attachments Related to Form 8804

  1. If Form 8804 is received in Code and Edit with remittance attached, immediately forward the return and the remittance to the work leader.

  2. Leave a tax deposit "MEMORANDUM RECEIPT" attached to the return.

  3. However, if the taxpayer has requested that an attachment be returned:

    1. Photocopy the attachment and attach the photocopy to Form 8804.

    2. Return the original attachment to the taxpayer using Form 3699, Return of Documents to Taxpayer.

  4. If the taxpayer indicates on an attachment that Form 8804 will not be required to be filed for future tax years, edit Computer Condition Code "F" . If the taxpayer submits a return other than Form 8804, but indicates that Form 8804 should be filed, research using CFOL Command Codes or ENMOD. If a Form 8804 filing requirement is not found, send the return to the Entity Control function for update of the filing requirement.

  5. When the corrected return is received from Entity Control:

    1. Convert the return to the proper form.

    2. Process as required.

  6. If Form 8805 is attached to Form 8804, do not detach until the editing of Form 8804 is completed.

  7. Generally, you may find that there are two types of Form 8805 attached to a Form 8804. One type of Form 8805 is to remain attached to Form 8804 and the other type is to be detached from Form 8804 and sent to Batching and Numbering after Form 8804 is edited.

    1. A Form 8805 that is attached to Form 8804 to substantiate the Section 1446 withholding claimed on Line 6b must remain attached to Form 8804.

      Note:

      This type of Form 8805 will show the partnership entity information on Lines 1 and 2. See Figure 3.21.15-1a.

    2. A Form 8805 that is submitted with Form 8804 to reflect the amount of effectively connected income and Section 1446 taxes withheld allocable to a foreign person is to be detached from Form 8804 and forwarded to Batching and Numbering.

      Note:

      This type of Form 8805 will show the partnership entity information on Lines 5a and 6. See Figure 3.21.15-1b.

  8. If the taxpayer attaches a Form 2220 or a Form 8804 Schedule A to their Form 8804 tax return to pay an estimated tax penalty, leave it attached.

  9. If a Form 8813 is attached to Form 8804, then place an "X" on the entire Form 8813 and leave it attached.

  10. In the event that a "Reasonable Cause" correspondence is attached to Form 8804 for having filed late either Form 8804-C,Certificate of Partner-Level Items to Reduce Section 1446 Withholding or a similar Certificate of Partner-Level Items under IRC Regulations 1.1446-6 late, then detach it from Form 8804 and transship the correspondence to:

    Internal Revenue Service

    4-F23.142 Examination Branch

    2970 Market St.

    Philadelphia, PA 19104

    Figure 3.21.15-1a
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.21.15-1b
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  11. Use the following instructions when handling attachments submitted with Form 8804.

    Note:

    Form 8804 is also used to transmit Form 8805 to the IRS.

  12. Form 8805 is a four part document:

    1. Copy A for Internal Revenue Service "Attach to Form 8804."

    2. Copy B for partner "Keep for your records."

    3. Copy C for partner "Attach to your Federal tax return."

    4. Copy D for Withholding Agent.

  13. The foreign partnership should attach Form 8805 Copy A to Form 8804. This document (Form 8805 Copy A) is to be detached from Form 8804 and forwarded to Batching and Numbering for processing. A DLN beginning with "60546" will be assigned to the Form 8805. If Copy A is not attached use the copy submitted. If the copy is to verify Line 6b, see IRM 3.21.15.19.2.23.

    Caution:

    If the foreign partnership attaches multiple copies of Form 8805 (Copies B, C or D) to Form 8804, along with Form 8805 Copy A for the same foreign partner, then "X " (delete) the other copies (B, C and D) and staple them behind Form 8805 Copy A prior to forwarding the Form 8805s to Batching and Numbering.

    Note:

    Before deleting ("X'ing" ) the other copies ensure it is an exact duplicate of the original.

3.21.15.11.1  (01-01-2015)
Attachments Unrelated to Form 8804

  1. Taxpayer inquiry requests an adjustment to another return:

    1. Remove any attachment requesting an adjustment (ADP or non-ADP).

    2. Forward to the BMF International Accounts Management Department for action.

    Note:

    If the taxpayer inquiry meets TAS criteria and you cannot resolve the taxpayer’s issue the same day, complete Form 911 and refer to your local Taxpayer Advocate. See IRM 3.21.15.3.

  2. If the attachment does not include the taxpayer's name, address or Taxpayer Identification Number (TIN), enter this information on the attachment.

  3. If a tax authorization (Form 2848 or Form 8821) is attached to correspondence, review the correspondence to determine if other requests are involved:

    1. If other requests are involved, photocopy the correspondence and send the copy, along with the authorization to the CAF (Centralized Authorization File) function for processing.

    2. If other requests are not involved, send the original correspondence and the authorization to the Campus CAF function for processing.

  4. Other Unrelated Attachments:

    1. Remove other unrelated attachments (such as other returns, requests for tax forms, etc.) from the document being processed, and

    2. Route to the proper function for necessary action.

  5. Always include the following information when forwarding documents to other functions:

    • Name and address of the taxpayer

    • Taxpayer Identification Number

    • Received Date or the words "TIMELY FILED"

    • Tax Period and type of document from which detached

    • Action required to be taken

  6. If an attachment is removed because the majority of the information is unrelated to the Form 8804 being processed:

    1. Leave an "Action Trail."

    2. Route the attachment to the appropriate function.

3.21.15.11.2  (01-01-2015)
♦Routing Guide for Attachments♦

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

    1. Attachments should only be detached when specifically instructed.

    2. Edit Action Trail(s) (e.g. 2848 DETACHED) in the lower left corner going vertically up the side of the return.

  2. Follow the general guidelines below for each attachment. The table contains routing instructions for specific forms and/or documents attached to Form 8804:

    DOCUMENT/FORM DETACH ACTION
    A General Power of Attorney or a Durable Power of Attorney or Tax Information Authority is submitted on any document other than Form 2848 or Form 8821 NO Take no action. Leave the Power of Attorney or Tax Authorization attached to the return. Do not route to the CAF function.
    Closing Agreement NO Leave attached
    TD F 90-22.1, Report of Foreign Banks and Financial Accounts YES Transship to:
    U.S. Department of the Treasury
    P. O. Box 32621
    Detroit, MI. 48232-0621
    CP 259, CP 515, CP518 NO Route notice and return to Collections.

    Exception:

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

    Includes tax liability for Multiple Tax Periods or Types of Tax NO
    • Numbered returns route to Rejects

    • Unnumbered returns, prepare a dummy return if possible: otherwise correspond

    Other Tax Returns (original signature) YES
    1. Edit received date to the detached return.

    2. Route to appropriate function unless specifically directed otherwise.

      Exception:

      Returns attached to a consolidated return will NOT be detached.

    State Tax Returns, original or copy, with an original signature YES Route to Receipt & Control.
    State Tax Returns (Photocopy, facsimile or no signature) NO Leave attached.
    Statement establishing Reasonable Cause for delinquent filing YES
    1. Issue Letter 1382C (Penalty Removal Request Incomplete). (See IRM 3.21.15.12.2 (6))

    2. Continue editing the return.

    Remittance found NO Immediately hand carry return and remittance to supervisor.
    Request for Acknowledgement NO No Action Required
    Request for information or inquiries YES
    1. Photocopy any data necessary to process the return

    2. Attach the photocopy to the return.

    3. Route original attachment to the proper office for necessary action.

    Request for Adjustment to Form 8804 YES Route to PAMC (Philadelphia Accounts Management Center). Attachment must contain Name, Address, EIN and Received Date. Enter if missing.
    Request for money transfer YES Correspondence notates transfer of money to the return you are working:
    1. Prepare Form 3465 (Adjustment Request) to route the request to Rejects Unit.

    2. Hold the return for 2 cycles before processing.



    Correspondence notates transfer of money from the return you are working:
    1. Prepare Form 3465 to route the request to Accounts Management.

    2. Edit CCC "X" on Form 3465 to freeze any overpayment. (Do not edit on Form 8804).

    3. Continue processing the return.

    Request for Forms or Schedules NO If requesting current year forms:
    1. Prepare Form 4190 (Order Tax Forms and Publications).

    2. Forward to National Distribution Center (NDC) for processing.



    If requesting prior year forms:
    1. Prepare Form 6112 (order for Prior Year Tax Products).

    2. Forward to National Distribution Center (NDC) for processing.

      Note:

      Forms 4190 and 6112 are generally used for Individual Master File (IMF) requests. Therefore, enter all BMF requests for forms and/or schedules in the "WRITE-IN" portions of the forms.

    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy A ONLY YES Refer to local Maildex for in house routing for transcription.
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy B ONLY NO Leave attached to Form 8804
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy C ONLY and Copy D only NO Leave attached and just staple up any additional copies.
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy E ONLY YES Return to Withholding Agent
    Form 2220, Underpayment of Estimated Tax by Corporation NO Leave attached to Form 8804.
    Form 2848, Power of Attorney and Declaration of Representative YES
    • Edit taxpayer name and TIN on Form 2848 if missing.

    • Edit received date on Form 2848.

    • Route Form 2848 to CAF function.

    • Edit action trail on tax return.

    Form 5471 (Information Return of U.S. Persons With Respect To Certain Foreign Corporations) or Form 5472 Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code) YES Route to Receipt and Control for rebatch (form will be scanned for LB&I purposes).
    Form 5495, Request for Discharge from Personal Liability Under Internal Revenue Code Section 2204 or 6905 NO Leave attached
    IRC 6020b NO Edit CCC "A" and CCC "4"
    See IRM 3.21.15.12.3.1
    Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns YES If the extension is for a different period. Route to Receipt and Control for re-batch.
    Form 8233, Exemption from Withholding on Compensation for Independent (& certain Dependent) Personal Service of a Nonresident Alien Individual YES Transship to:
    Internal Revenue Service
    International Section
    P.O. Box 920
    Bensalem, PA 19020-8518
    Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests - with original signature YES, If attached to another return being edited Send to be processed
    Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests - Copy of return NO "X" -out Form 8288 and leave attached.
    Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

    Note:

    May need verification, see IRM 3.21.15.19.2.21(4)

    NO Leave attached
    Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests YES Route to Ogden AM department
    Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), with original signature YES, If attached to another Form 8804 return being edited Send return to be processed
    Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), Copy of original return NO, but check for posting If not posted to BMF, send the return to be processed.
    Form 8804 Schedule A, Penalty for Underpayment of Estimated Section 1446 Tax by Partnerships NO Leave attached

    Note:

    You may need to edit CCC "A" on Form 8804. See IRM 3.21.15.17.

    Form 8804-C, Certificate of Partner-Level Items to Reduce Section 1446 Withholding YES
    See IRM 3.21.15.1.1.2 (2)
    Route to:
    Internal Revenue Service
    4-F23-142 Examination Branch
    2970 Market St.
    Philadelphia, PA 19104
    Form 8804-W, Installment Payments of Section 1446 Tax for Partnerships NO Leave attached to Form 8804.
    Form 8804-W, Installment Payments of Section 1446 Tax for Partnerships YES If attached to a return other than a Form 8804, detach and return to the taxpayer.
    Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax, Copy A Only YES,
    See IRM 3.21.15.11 (6)
    After Form 8804 is edited, detach Form 8805 Copy A and Forward to Batching and Numbering.
    Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax, Copy B or C Only YES or NO Refer to IRM 3.21.15.11 (13) for decision on whether to detach or not.
    Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax, Copy D Only YES or NO Refer to IRM 3.21.15.11 (13) for decision on whether to detach or not.

    If detaching, route to Receipt & Control and notate RETURN TO WITHHOLDING AGENT. (Taxpayers are not required to send this in to the IRS)
    Form 8809, Application for Extension of Time to File Information Returns NO Leave attached
    Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) NO "X" -out Form 8813 and leave attached
    Form 8821, Tax Information Authorization YES
    • Edit taxpayer name and EIN on Form 8821 if missing.

    • Edit received date on Form 8821.

    • Route Form 8821 to CAF function.

    • Edit action trail on tax return.

    Form 8822, Change of Address YES Route to Entity Control if the address is different than what is on the forms entity.
    Form SS-4, Application for Employer Identification Number YES Route to Entity Control
    Form W-7, Application for IRS Individual Taxpayer Identification Number YES Transship to:
    Internal Revenue Service
    ITIN Operation
    P.O. Box 149342
    Austin, TX 78714-9342
    Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding NO Leave attached
    IRC 1.1446-6 (26 CFR 1.1446-6) Notation Withholding Certificate or any associated reasonable cause request YES Route to:
    Internal Revenue Service
    4-F23-142 Examination Branch
    2970 Market St.
    Philadelphia, PA 19104
    Section 108(i) (26 USC 108) Election NO Leave attached
    Protective Claim YES Route to Accounts Management

3.21.15.12  (01-01-2015)
Special Returns

  1. Use the following instructions when processing special or nonstandard returns for Form 8804.

3.21.15.12.1  (01-01-2015)
♦Amended Returns♦

  1. An Amended return may be identified by checking the "Amended" box and/or by such words as "SUPPLEMENTAL," "DUPLICATE," "ADDITIONAL," or any other positive indication that the taxpayer has filed previously. Filing a "Copy" of a return is not sufficient reason to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

  2. Examine the return for attachments. Do not separate any related attachments from the return that the taxpayer has submitted to explain the reason for the Amended return; this information will be used by Accounts Management. Detach any unrelated documents and route them to the appropriate function using Form 4227. Edit Action Trail on the return.

  3. If you have an amended Form 8804, edit CCC "G" and DO NOT detach any Form 8805 statements from the Form 8804 return.

  4. There is an indication the return is amended and:

    If... Then...
    "TC 59X" or "ICS" was edited on the return by Compliance Services, Do not edit CCC "G." Process the return as an original.
    The return is stamped "Delinquent Original Cleared for Processing" by Statutes, Do not edit CCC "G." Process the return as an original.
    Form 13596 is attached, Do not edit CCC "G."
    None of the above are present, Edit CCC "G." No other codes may be used with a CCC "G" except "W," "3" and/or ERS Action Codes.
  5. The following data must be edited on all amended returns:

    1. Name control (unless Check Digits are present)

    2. EIN

    3. Tax period

    4. CCC "G"

    5. Received Date

    6. Signature

3.21.15.12.2  (01-01-2015)
Delinquent Returns

  1. A return is normally delinquent if it is not received on or before the Return Due Date (RDD). However, accept the return as timely filed if the received date is within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . See IRM 3.10.72,Receiving, Extracting, and Sorting or IRM 3.10.73 Batching and Numbering.

  2. Accept a return as timely if the return was mailed in time to reach the Service through normal handling within the legal period but, through no fault of the taxpayer, it was not delivered.

  3. Consider a return timely if it appears that the Post Office might have sent it to another government agency in error, or if the original envelope bears a timely postmark or a timely date stamp by that agency. However, if the return was erroneously addressed to another agency, it will be date stamped with the current date when the IRS received it.

  4. See IRM 3.21.15.1(1) for information on the due date of Form 8804.

  5. If a return is delivered to the IRS after the date prescribed for filing, consider the following:

    • The postmark date stamped on the envelope as the date of delivery.

      Note:

      If the postmark date falls on or before the prescribed date for filing the return, then consider the return timely and edit the timely postmark date in MMDDYYYY format.

  6. If the return (Form 8804) is truly delinquent, check the return for an explanation of late filing. If the taxpayer attaches correspondence with a reasonable cause explanation for failure to file a timely return, take the following action:

    1. Detach the reasonable cause explanation correspondence from the return.

    2. Complete Form 3499, "Informational Transmittal," and forward to Accounts Management , BMF INT'L unit, . In the remarks area write "Process attached Reasonable Cause Correspondence. TC 150 to post in 4 weeks."

    3. Prepare correspondence action sheet for IDRS Letter 1382C (use paragraphs "A, N and V" ) and assign it to a clerk for input to IDRS, or follow local procedures. It may or may not include the Rejects function.

      Note:

      Do not edit CCC "U, R, or 7" on the return. PAMC will address the taxpayers reasonable cause letter.

    4. Continue processing Form 8804. Do not attach the correspondence action sheet Letter 1382C to the return.

3.21.15.12.3  (01-01-2015)
♦Compliance Secured/Prepared Returns♦

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

    1. Prepared tax returns are notated with "6020(b)" or "SFR" (Substitute for Return).

    2. Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collection System) or notated "Process as Original" with an attached Form 13133, Expedite Processing Request. The "Delinquent Return" box on Form 13133 should be checked. If Form 13133 is attached, edit the Computer Condition Codes (CCC) that are checked on the form to Form 8804.

      Note:

      Edit CCC "R" when there is an indication on the return, such as "DO NOT ASSESS FAILURE TO FILE PENALTY" and the appropriate checkbox is not marked.

      Note:

      If "RD" is notated on the front of the return and not circled, remove from the batch and route to Collections.

3.21.15.12.3.1  (01-01-0214)
♦IRC 6020(b) - Prepared by Collection♦

  1. When the taxpayer fails to file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.

  2. These returns are identified by the notation: "PREPARED AND SIGNED UNDER THE AUTHORITY OF IRC REGULATION 6020(b) OF THE INTERNAL REVENUE CODE" which is located in the center bottom of Page 1 of the return.

    1. Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.

    2. The return or an attached Form 13496, "IRC 6020(b) Certification Form" must be signed by Compliance. If not, route to Compliance using Form 4227.

    3. Edit CCC "4" See IRM 3.21.15.17, CCC "A" .

      Note:

      CCC "R" should not be used with CCC "4" .

    4. Do Not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, edit CCC "3" and continue processing.

    5. Edit CCC "W" if the Received Date is more than 2 years and 9 months after the Return Due Date. Do Not send the return to Statute Control.

3.21.15.12.3.2  (01-01-2015)
♦Collection Secured♦

  1. These returns are identified by the notations: "TC 59X" or "ICS" .

    1. Do Not edit CCC "G" on these returns.

    2. Use approved Correspondence Action Sheet to correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.).

    3. Edit CCC "W" if the Received Date is more than 2 years and 9 months after the Return Due Date. Do Not send the return to Statute Control.

3.21.15.12.3.3  (01-01-2015)
♦Examination Prepared♦

  1. These returns are identified by the notation: "SFR" or "SUBSTITUTE FOR RETURN" on Page 1. Refer to IRM 3.21.15.12.3 (1)a for additional instructions.

    1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.

    2. Do Not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, use No Reply procedures and edit CCC "3" and continue processing.

    3. If Form 13133 is attached, edit the Computer Condition Codes that are checked on the form.

      Note:

      CCC "R" should not be used with a CCC "4" .

    4. Edit CCC "W" if the Received Date is more than 2 years and 9 months after the Return Due Date. Do Not send the return to Statute Control.

3.21.15.12.3.4  (01-01-2015)
♦Examination Secured♦

  1. These returns are identified by the notation: "Process as Original" on Page 1 of the return and a Form 13133, Expedite Processing Request, attached with the "Delinquent Return" box checked.

    1. Use approved Correspondence Action Sheet to correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.). Refer to IRM 3.21.15.12.3 (1)a for additional instructions.

    2. Edit the Computer Condition Codes that are checked on Form 13133.

      Note:

      CCC "X" (Hold Credits on Module) is not valid for Form 8804.

    3. Edit CCC "W" if the received date is more than 2 years 9 months after the Return Due Date. Do Not send to Statute Control function.

3.21.15.12.3.5  (01-01-2015)
♦Frivolous Argument♦

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 4.10.12.1.1, Frivolous Arguments.

  2. Review the return to determine whether it appears to be a frivolous return. See Exhibit 3.21.15-8.

    If... Then...
    The return meets any of the conditions identified as a frivolous return, (e.g., indicated by CCC "U" or an Action Code 331) , and has a Form 4227 attached with the remarks, "Refer to Exam FRP for audit after processing," continue to next procedure. Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.

    Note:

    IRM 4.10.12.1.3.3, Campus FRP Coordinators, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within two (2) business days.


    If a determination is not made within the allowed time frame, the Examination examiner will edit Action Code 331 in the lower left margin of the form.
    Examination has selected the return as frivolous, (e.g., indicated by CCC "U" or an Action Code 331) and a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing," but sends the return for processing, Continue processing the return using procedures in IRM. However, do not circle or void the Action Code indicating a frivolous return.

    Note:

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

3.21.15.12.4  (01-01-2015)
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ "

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

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

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

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

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

3.21.15.12.5  (01-01-2015)
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡

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

3.21.15.13  (01-01-2015)
♦Re-Entry Document Procedures♦

  1. A return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module.

    A Re-entry document is referred to as:

    • A Re-input return (a return that has not posted to the master file, e.g. unpostable).

    • A Re-processable return (a return that has posted to the master file, e.g. return posted to the wrong account or module).

  2. Some re-entry returns may have originally been filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts in lieu of the actual return. Do not correspond for missing signatures on these documents.

  3. Each re-entry return must have a Form 3893, Re-entry Document Control, or Form 13596, Reprocessing Returns, attached.

    • Form 3893 is used to reinput documents that have not posted to an account or module.

    • Form 13596 is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module.

  4. Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.

  5. Examine Form 3893 or Form 13596 to determine the action needed to make the return processable.

    If... Then...
    Form 3893 or Form 13596 is missing
    1. Edit CCC "U" on return.

    2. Route to Receipt & Control using Form 4227.

    3. Use local procedures for routing.

    Form 3893 or Form 13596 is attached Determine if the return was edited according to current processing instructions.

    Caution:

    If the Received Date is 2 years and 9 months or more after the Return Due Date, refer to Statute procedures before re-entering or reprocessing the return.

  6. If additional information is needed to make the return processable, prepare Form 3696 or follow local correspondence procedures.

    1. Enter CCC "U" (Unprocessable) on the return.

    2. Forward Form 3696 to Typing and Suspense to issue letter and filing in the "Hold File" or follow local correspondence procedures.

3.21.15.13.1  (01-01-2015)
♦Form 3893 -- Re-entry Document Control♦

  1. Form 3893, Re-entry Document Control, is used to reinput a return that has not posted to an account or module.

  2. If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.

  3. Circle the CCC "G" if present.

  4. Do not edit CCC "G" on amended returns.

  5. Do not send Letter 1382C if a request for reasonable cause is attached, because this responsibility belongs to the customer service representative initiating the re-entry document.

  6. If the return was not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

  7. If the return was edited according to current processing instruction, ensure that the information from Form 3893 is edited on the return.

    Form 3893 Action Taken
    Box 14 (Remarks) Ensure that the information is edited to the return.
    Box 15 (Process as)
    1. Circle out any green rockered money amounts and edit marks that may indicate a receipt of remittance.

    2. Do not change any tax due amounts.

  8. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    If... Then...
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.
  9. A received date must be present on all Re-input returns:

    If... Then...
    Received date is not present Edit a received date to the middle of the return.
    Multiple received dates are present Circle out all but the earliest date.
  10. When additional information is still needed to make the return processable, prepare Form 3696(or other approved Correspondence Action Sheet) or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).

  11. When perfection is not possible, attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.

3.21.15.13.2  (01-01-2015)
♦Form 13596 -- Reprocessing Returns♦

  1. Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

  2. Circle CCC "G" if present.

  3. Do not edit CCC "G" on amended returns.

  4. Do not send Letter 1382C if a request for reasonable cause is attached, because this responsibility belongs to the customer service representative initiating the re-entry document.

  5. If the return was edited according to current processing instructions, ensure that the information from Form 13596 is edited on the return.

    Form 13596 Action Taken
    TIN correction Edit correct TIN on return.
    Tax period correction Edit correct tax period ending on return.
    Reasonable Cause Edit appropriate computer condition code:
    1. Edit CCC "R" if the "Failure to File (FTF)" box is checked.

    2. Edit CCC "D" if the "Failure to Pay (FTP)" box is checked.

  6. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    If... Then...
    Improper perfection Edit the same correction in red/green (per local procedure) to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.
  7. A received date must be present on all reprocessed returns:

    If... Then...
    Received date is not present Edit in MMDDYYYY format in the "For IRS Use Only" box, RD field
    Multiple received dates are present Circle out all but the earliest date.
  8. Circle out the green rocker or green check and edit marks that may indicate a receipt of remittance.

3.21.15.14  (01-01-2015)
Editing the Tax Period

  1. The initial tax period to process to the BMF under MFT 08 is tax period ending 12/31/2004 (200412).

    Note:

    Transcription under this program is permitted ONLY for Form 8804 filed for tax years ending December 31, 2004 and subsequent. If the T/P uses a prior year return for the current year taxes, then correct the pre-printed tax year by lining through the last 2 digits (2013) and edit "13" to the right of the tax year.

  2. Edit the tax period in "YYYYMM" format on Form 8804, and to the left of the printed tax year if it is a fiscal or prior year return.

    Note:

    No editing is required on a current year return.

  3. In the absence of an affirmative indication, the tax period, by "default" is the calendar year printed on the return.

  4. A tax period should end on the last day of a month. However, ignore a minor discrepancy such as October 30, instead of October 31. However, returns with a tax period beginning and ending dates that would make the tax year longer than one year or 12 months (e.g. January 1, 2012 to February 28, 2014). Correspond for the tax period when the tax year exceeds one year.

  5. Tax periods reported under the 52-53 week rule may not end more than six days before or three days after the end of a month.

    1. If the tax period ending date is not more than 3 days after the beginning of the month, edit the previous month.

    2. If the tax period ending date is not more than 6 days before the end of the month, edit the month shown.

  6. A "FINAL" short-period return ends on the date the partnership was dissolved.

    Exception:

    If the tax year on Form 8804 begins with January 2004, or later, and ends before December 31, 2004, (200412) because it is a final return, then change the tax period to 200412. Be sure CCC "F" is present. Do not send Form 8804 to be re-numbered for NMF processing.

    1. On a Final return, if the Tax Period’s month and year, is equal to or later than the received date’s month and year, edit the Tax Period to be one month prior to the Received Date.

    2. Edit CCC "Y" on a short period return.

3.21.15.14.1  (01-01-2015)
Early-Filed Returns

  1. An early-filed Form 8804 for tax period 201412 (that is, filed before January 1, 2015) must be held for processing in 2015.

  2. An early-filed Form 8804 return is to be held for processing until the beginning of the appropriate processing year.

    1. Edit CCC "U" on Form 8804.

    2. Prepare Form 4227, by placing an "X" in the Rejects Correction box and stapling Form 4227 to the front of the document. Write, "Early filed return - hold for processing" in the remarks area, and leave the early filed return in the pack of work.

    3. Return will be routed to Rejects by ERS after ISRP processing.

    Note:

    You must detach the Form 8805s and send them to get batched and numbered. The Form 8805s will be entered into the INTL WebApps database.

3.21.15.15  (01-01-2015)
Books and Records Outside the U.S. and Puerto Rico Checkbox

  1. The "Books and Records" checkbox can be found directly under the printed tax year on Form 8804.

  2. If the checkbox is marked then edit a " 1" to the right of the checkbox.

    Note:

    The "1" indicates to the computer that the Return Due Date (RDD) will be the 15th day of the 6th month from the end of the partnerships tax year.

  3. No editing is required if the checkbox is not marked.

3.21.15.16  (01-01-2015)
♦Received Date♦

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

  2. A Received Date is required on all Form 8804 returns. Use the chart below to perfect the received date.

    If... And.. Then...
    The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal or extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .   The return is considered timely.
    The due date falls on a weekend or legal holiday,   The return is timely if postmarked by the first business day following the weekend or legal holiday.
    The IRS received date stamp is after the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The postmark or shipment date is on or before the legal or extended due date, Edit the Received Date to agree with the postmark date.
  3. The Received Date may or may not be stamped on the face of the return.

  4. A valid Received Date Stamp consists of the following (MMDDYYYY):

    • The word "Received"

    • Month (alpha or numeric)

    • Day (numeric 01-31)

      Example:

      "1" or "01"

    • Year (numeric) - four digits

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

      Exception:

      The Taxpayer Advocate Service (TAS) organization is not a point of filing and TAS employees have not been delegated the authority to accept returns for filing. Treat all TAS Received Dates as invalid by circling them and edit the Received Date according to instructions.

  5. Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from an office that is not a proper place for filing, that date stamp is not the "IRS Received Date," and you must edit the Received Date according to instructions in IRM 3.21.15.16 (6), below, as if no received date stamp is present.

    Example:

    Returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date."

  6. If the Received Date stamp is not present or the date is illegible or invalid, edit the Received Date in MMDDYYYY format in the "For IRS Use Only" RD field. See Figure 3.21.15-2. Edit the Received Date according to the following priority:

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

      If... Then...
      An envelope is not attached Use the date stamped on the face of the return.
      An envelope has a USPS and private metered postmark Always use the USPS postmark.
      An envelope has a foreign and private metered postmark Always use the foreign postmark.
      An envelope has two private metered postmarks Use the latest private metered postmark.
      An envelope has only one private metered postmark Use the private metered postmark.

      Note:

      A private metered postmark is to be considered timely if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal due date.

    2. Service Center Automated Mail Processing System (SCAMPS) digit date.

    3. Revenue Officer's signature date.

    4. Signature date (only if within current year).

      Exception:

      Use the signature date on prior returns only when it is signed in the current year. DO NOT use the signature date stamp to determine the received date for replies to correspondence.

    5. Julian control date minus 10 days.

    6. Current date minus 10 days.

    Figure 3.21.15-2
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  7. Edit the Received Date as follows:

    If And Then
    A timely Received Date is the only Received Date stamped on the return,   No editing is required.
    Two or more dates stamped on the return.  
    1. Edit the earliest IRS Received Date in MMDDYYYY format in the "For IRS Use Only" RD field.

    2. Circle out all other dates.

    A Federal return is addressed to the IRS Delivered to a State agency
    1. Use the Postmark Date on the envelope as the Received date.

    2. Edit the Received Date in MMDDYYYY format in the "For IRS Use Only" RD field.

    A Federal return is addressed to a State agency  
    1. Use the IRS date stamp as the Received date.

    2. Edit the IRS Received Date in MMDDYYYY format in the "For IRS Use Only" RD field.

    A return contains a received date stamp from an office that is not a proper place for filing (e.g. TAS, Chief Counsel),   Then follow the instructions in IRM 3.21.15.16 (6).

    Reminder:

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

  8. If Form 8804 is received prior to January 1 of the current processing year:

    1. Edit the first day after the end of the tax period as the received date. For example, if the actual received date for a Tax Year 2012 return is "12122012," enter "01012013."

    2. If present, circle out the stamped Received Date on the return.

  9. No editing is necessary if Form 8804 is received after January 1, and the received date is stamped.

  10. The table below provides return due date information for Form 8804.

    RECEIVED DATE CHART
    (Weekends and Holidays considered)
    TAX PERIOD
    ENDING DATE
    FORM 8804
    DUE DATE
    FORM 8804
    DUE DATE
    (when the books and records are kept outside the U.S. and P.R.)
    Sept. 2013 1-15-2014 3-15-2014
    Oct. 2013 2-18-2014 4-15-2014
    Nov. 2013 3-17-2014 5-15-2014
    Dec. 2013 4-15-2014 6-17-2014
    Jan. 2014 5-15-2014 7-15-2014
    Feb. 2014 6-16-2014 8-15-2014
    March 2014 7-15-2014 9-16-2014
    April 2014 8-15-2014 10-15-2014
    May 2014 9-16-2014 11-15-2014
    June 2014 10-15-2014 12-16-2014
    July 2014 11-17-2014 1-15-2015
    Aug. 2014 12-16-2014 2-17-2015

3.21.15.16.1  (01-01-2015)
♦Statute of Limitation♦

  1. Any return with a received date that is 2 years and 9 months or more after the Return Due Date is a potential statute control return. A Statute return must be routed to the Statute Control Unit daily or more often if needed.

    Note:

    The Form 8804 return is considered unprocessable until it has been cleared by Statute Control.

    Exception:

    If the return has already been cleared by statute, edit CCC "W" and continue processing. However, if the statute clearance date shows a date cleared more than 90 days earlier, send return back to Statute function for clearance.

  2. Do not route to the Statute Control Unit for clearance if any of the following conditions are present:

    • Compliance IRC Regulation 6020(b) returns.

    • Returns with "TC 59X" or "ICS" notated on the face of the return.

    • Returns that are substitute returns prepared by Examination (SFR) in top margin of the return.

    • Returns with a stamp indicating a previous clearance by Statute Control within the last ninety days.

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

    If... Then...
    The return is numbered,
    1. Edit CCC "U" on the return.

    2. Leave the return in the batch and continue processing.

    See IRM 3.21.15.9.
    The return is unnumbered,
    1. Do not continue processing.

    2. Pull the return from the batch.

    3. Attach Form 4227 and route to Statute Control Unit.

  4. Once the document is returned by Statute, and it has been cleared by Statute, edit CCC "W."

    Note:

    Statute will stamp or indicate clearance on the front of the return.

  5. The Internal Revenue Code (IRC) states that the Internal Revenue Service (IRS) will assess, refund credit, and collect taxes within specific time limits. These limits are known as Periods of Limitations. When they expire, we can no longer assess additional tax, allow a claim for refund by the taxpayer, nor take collection action. There are different periods of limitations for Assessment, Refund, and Collection Statutes. The expiration of these periods is tracked separately.

  6. The different periods of limitations expiration dates that are tracked are:

    • Assessment Statute Expiration Date (ASED): Return filed early - 3 years from the Return Due Date (RDD) or 3 years from approved extended date; Returns filed late - 3 years after the return was filed; No return filed - assessment may occur at anytime. See IRC 6501(a) and IRC 6501 (c)(3).

    • Refund Statute Expiration Date (RSED): 3 years from the time the return was filed or, if later, 2 years from the date after the tax was paid. See IRC 6511(a) and IRC 6511 (b)(2)(A).

    • Collection Statute Expiration Date (CSED) is generally 10 years from the 23-C date or 10 years from the date of the TC 29X or 30X adjustment. See IRC 6502(a).

    Note:

    Exceptions may apply to change the periods of limitations.

  7. There are several conditions that may change the general Assessment Statute Expiration Date (ASED). They include:

    • IRC 6501 (c) (1) - False Return

    • IRC 6501 (c) (4) - Extensions by Agreement

    • IRC 6501 (b) (3) - Substitute for Return by Authority of IRC 6020(b)

      Caution:

      IRC 6020(b) is not a tax return that triggers the period of limitations on assessment under IRC 6501(a). If the taxpayer subsequently files a return reporting an additional liability, that return constitutes an original tax return allowing for the assessment of any additional amount not already assessed under the Substitute for Return program and triggering the running of the period of limitations on assessment for the tax year.

    • IRC 6501 (d) - Is request for Prompt Assessments, which shortens the Assessment Period

    • IRC 6501 (e) - Substantial Understatement (in excess of 25%) Omission of Income provides for a 6 year period of limitations.

    • IRC 6503 (a) - Issuance of Statutory Notice of Deficiency (90-day Letter, which suspends the running of the period of limitations.)

    • IRC 6503 (h) - Bankruptcy

    • IRC 6229 (a) through (h) Partnership Items

  8. In the case of a partnership subject to the unified partnership audit and litigation procedures of IRC 6221 -IRC 6234, the issuance of a notice of final partnership administrative adjustment suspends the statute under IRC 6229 (d). The partnership can also extend its statute through a Form 872-I signed by a general partner on behalf of the partnership, or through a Form 872-P (Consent to Extend the Time to Assess Tax Attributable to Partnership Items) signed by the tax matters partner.

  9. Once a partnership issues Form 8805s to its partners, the partnership may not claim a refund for any amount of tax shown on the Form 8805s as paid on behalf of the partners. Treasury IRC Regulation 1.1446-3(d)(2)(iv).

  10. If a partnership is subject to the unified partnership audit and litigation procedures of IRC 6221 - IRC 6234 is entitled to a refund, it must file a refund request (Request for Administrative Adjustment - (RAA)) within 3 years of the filing of the partnership return. Under IRC 6227(a), the RAA must be filed using a Form 8082. If a Form 872-P or Form 872-I statute extension is secured from the partnership, the RAA can be filed within this extended period according to IRC 6227.

  11. Refer to IRM 25.6, Statute of Limitations for additional Statute instructions.

3.21.15.16.2  (01-01-2015)
♦Protective Claims♦

  1. Returns marked as "Protective Claim," "Protective Refund," "Protective Claim for Refund," or similar statement will be removed from the batch and routed to Accounts Management. Notate "Protective Claim" in the remarks box of Form 4227.

    Exception:

    If the return is amended, do not remove from batch. Edit Computer Condition Code "G" and follow normal processing procedures.

3.21.15.17  (01-01-2015)
Computer Condition Codes (CCC) -- Form 8804

  1. Up to five (5) Computer Condition Codes (CCC) may be edited.

  2. An entry may or may not be present in the CCC field.

  3. Only the following characters are valid: A, D, E, F, G, J, O, Q, R, S, U, V, W, X, Y, 3, 4, 7 or blank.

  4. Edit Computer Condition Codes inside the "For IRS Use Only" box, which appears underneath Line 1b. Enter the CCC in the first column, first line identified as CCC.

    Computer Condition Code Description
    A A non-penalty Schedule A (Form 8804) is attached to Form 8804.

    Note:

    Edit CCC "A" when there is a .00 or blank amount on Line 65, of Form 8804 Schedule A.

    Caution:

    Edit CCC "A" on an SFR or IRC 6020(b) return, and edit ".00" on Line 8 of Form 8804 if the attached Form 13133 has the CCC "8" checkbox marked. CCC "8" is not a valid CCC in the Form 8804 program.

    D
    (See IRM 3.21.15.17 (5))
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Edit CCC "D" if the FTP box on Form 13496 is checked.

    E Credit elect or penalty payment is to be applied.
    F
    (Final Return)
    There is a clear indication on the return itself or on an attachment that returns will not be required to be filed for future years
    G
    (Amended Return)
    There is a clear indication on the return or on an attachment that the return being processed is not the first return filed for the tax period.
    J Bypass the FTD Penalty program.

    Note:

    Returns are not subject to, or are to be excluded from the FTD penalty processing.

    O A pre-settlement manual refund was paid.
    Q Indicates a manual computation of the return with a math error.
    R
    (See IRM 3.21.15.17 (6))
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Edit CCC R if the FTF box on Form 13496 is checked.

    S An overpayment appears on Form 8804, Line 11 and the taxpayer does not specify the amount to be refunded on Line 12 or the application of the overpayment to the subsequent period on Line 13.
    U
    (Unprocessable return)
    Rejects unprocessable returns, or to issue a manual refund of over one million dollars.
    V A Delinquent return with Reasonable Cause established, or applicability of Failure to File (FTF) penalty.

    Note:

    The $20 daily delinquency penalty will not generate.

    W Return has been cleared by Statute.
    X Excess remittance with return or overpayment be applied to another account.

    Note:

    This code is used when it has been determined that an excess remittance should be applied to a different tax class or module (period). The CCC "X" will freeze the tax module from refunding or offsetting any monies by generating a TC 570.00.

    Y Accept the return as submitted by the partnership (e.g. short period return)
    3 No reply to correspondence. To bypass validation of the "CR" (Correspondence Received Date) when the taxpayer fails to reply to IRS-generated correspondence.

    Note:

    Use of CCC "3" is authorized in this scenario even though no correspondence action has been taken with the taxpayer.

    4 Return is notated "Prepared under IRC Regulation 6020(b)" .
    7 Denying the reasonable cause explanation for filing and paying late, and issue Letter 854C to deny the request.

    Caution:

    When using CCC "7," do not use CCC "D" or "R" .

  5. CCC "D" is used when reasonable cause exists for waiver of the failure to pay penalty. However, Code and Edit employees will not make this determination. If the taxpayer attaches correspondence with a reasonable cause explanation for failure to pay, then follow the instructions in IRM 3.21.15.12.2 (6).

  6. CCC "R" is used on a delinquent return with reasonable cause. CCC "R" prevents the failure to file penalty to be assessed. However, Code and Edit employees will not make this determination. If the taxpayer attaches correspondence with a reasonable cause explanation for failure to file, then follow the instructions in IRM 3.21.15.12.2 (6)..

3.21.15.18  (01-01-2015)
♦Entity Perfection General♦ -- Lines 1a through 1d

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

    1. Check Digits (on preprinted label), (This is only applicable to forms with check digits - not Form 8804).

    2. Employer Identification Number (EIN)

    3. Name

    4. "In-care-of" name

    5. Address

  2. There are two types of entities: (This is only applicable to forms with pre-addressed and non-pre-addressed labels - (Not on Form 8804)).

    1. Pre-addressed – An IRS preprinted label

    2. Non-pre-addressed – Handwritten or typed

      Note:

      Some forms have IRS labels printed under the National Change of Address (NCOA) program. These returns can be identified by either a solid black line or by pound signs above and to the left of the entity area. These returns do not contain Check Digits and are not considered to be pre-addressed (The note would only be applicable to forms with pre-addressed labels).

  3. The entity area of the return identifies the taxpayer (the filer) on the Business Master File (BMF).

  4. Edit Lines 1a through 1d using the following procedures.

3.21.15.18.1  (01-01-2015)
♦Entity Perfection - Name Control -- Line 1a♦

  1. The name control consists of the first four characters of the filer's partnership name.

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid in the last three positions. Blanks are valid only at the end of the name control.

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

      Note:

      If an individual and a trade name are present and it can be determined that the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships. If other than a corporation or partnership, follow the Name Control procedures for individuals, regardless of which line the individuals owner’s name is listed.

      Example:

      The partnership name is The Green Parrot, underline the name control "Gree" . However, if the Partnership name is The Flamingo, underline the name control "TheF" because the word "THE" was followed by one word and not more than one word. Refer to Document 7071-A, BMF Name Control Job Aid for additional instructions.

  2. See Job Aid Document 7071-A, BMF Name Control Job Aid , to determine the Name Control.

  3. All Name Controls are to be underlined.

  4. Edit the Name Control as follows:

    If... And... Then...
    The entity is an IRS label, The check digits are not present or have been altered, Underline the Name Control.
    The entity is not on an IRS label   Underline the Name Control.
    A second name is present and begins with "FKA" (formerly known as),   Continue editing the return.
    A second name is present and begins with "AKA" (also know as) or "DBA" (doing business as), etc.,   Circle the abbreviations.
    Unable to determine the Name Control, Unnumbered
    1. Look through the return for the name and/or research IDRS.

    2. If found, edit to the proper location.

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

    Unable to determine the Name Control, Numbered
    1. Edit CCC "U."

    2. Leave return in batch.

    See IRM 3.21.15.9.
    A return indicates the foreign partnership has filed bankruptcy (e.g., shows "RECEIVER," "TRUSTEE," or "DEBTOR IN POSSESSION" in the entity area or an attachment,   Route to Entity Control following local procedures.

3.21.15.18.2  (01-01-2015)
♦Entity Perfection -- Employer Identification Number (EIN)♦

  1. The Employer Identification Number (EIN) is a nine digit number (XX-XXXXXXX) assigned to identify the foreign partnership.

  2. The EIN is located on Line 1b or 2b.

  3. Determine the EIN as follows:

    Note:

    If you have access to IDRS, research IDRS for a better EIN instead of editing CCC "U" and forwarding the case to the Entity Control Unit.

    If... And... Then...
    EIN is missing, You can determine the correct EIN from the attachments (Form 8805) and/or schedules, Edit the EIN to the proper location on Line 1b
    The EIN is either a Preparer Tax Identification Number (PTIN) an Individual Taxpayer Identification Number (ITIN), or Social Security Number (SSN) Unnumbered
    1. Remove return from batch.

    2. Route to Entity Control following local procedures for EIN assignment.

    The EIN is either a PTIN, SSN or ITIN, Numbered
    1. Edit CCC "U."

    2. Leave return in batch.

    See IRM 3.21.15.9.
    Multiple EINs are present, one on Line 1b and one on Line 2b, Unnumbered Edit Line 2b by circling the EIN number.
    Multiple EINs are present, on Line 1b Numbered
    1. Edit CCC "U."

    2. Leave return in batch.

    See IRM 3.21.15.9.
    The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules:
    • Illegible;

    • Missing;

    • Other than 9 digits;

    • All zeroes; or,

    • All nines

    Unnumbered
    1. Circle out all illegible EINs, zeroes or nines.

    2. Look through the return for an EIN and/or research IDRS.

    3. If found, edit to the proper location.

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

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

    • Missing;

    • Other than 9 digits;

    • All zeroes; or,

    • All nines

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

    2. Edit CCC "U."

    3. Leave return in batch.

    See IRM 3.21.15.9.
    "PENDING" , "APPLIED FOR," etc., is indicated in the EIN area, Unnumbered
    1. Circle out the word "PENDING" , "APPLIED FOR," .

    2. Look through the return for an EIN.

    3. If found, edit to the proper location.

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

    "PENDING" , "APPLIED FOR," etc., is indicated in the EIN area, Numbered
    1. Edit CCC "U."

    2. Leave return in batch.

    See IRM 3.21.15.9.

3.21.15.18.3  (01-01-2015)
General Address Perfection

  1. Both domestic (U.S.) and foreign addresses should include:

    • The street number.

    • The street name.

    • Any appropriate room or suite designation (i.e., "Suite 2000" ).

    • The City or Town, State, and Zip Code (for domestic addresses).

    • The foreign city or province, country and foreign postal code (for foreign addresses).

  2. When editing either the mailing or location address information, remember the following guidelines:

    1. Ensure that a house or building number is present. Do not accept a building name in place of the numeric designation. Research for the correct address.

    2. Always edit the suite, apartment number, room number, etc. at the end of the street address line.

    3. If present, always edit the street suffix, such as street, drive, lane, terrace, etc.

    4. If present always edit the directional information, such as North, South, East, West, etc.

      Note:

      Use the appropriate abbreviations when necessary. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    5. If after research a street address or PO Box is not found, edit the word "Local" on the street address line.

      Note:

      This should only occur in very small towns.

3.21.15.18.4  (01-01-2015)
♦Entity Perfection -- "In Care of" Name Line 1c♦

  1. An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).

  2. Ensure the "in-care-of" name is located above the street address.

    If... Then...
    The "in-care-of" name is located on the street address line preceding the street address No editing is required.
    The "in-care-of" name is located below the street address
    1. Arrow the "in-care-of" name above the street address.

    2. Continue editing the return.

    The "in-care-of" name is shown on an attachment Edit the "in-care-of" name above the street address in the first position.
    The street address of the "in-care-of" name is different from the street address of the foreign partnership
    1. Arrow the "in-care-of" street address below the "in-care-of" name or edit the in-care-of street address below the "in-care-of" name if located on an attachment.

    2. Circle the partnership street address.

    3. Continue editing the return.

    Note:

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

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

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

    • Information is attached showing a change to the "in-care-of" name or address.

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

    2. Continue editing the return.

    An "in-care-of" name is present and there is an indication of an address change),
    1. Edit the "in-care-of" name as shown above.

    2. Correct the address.

    3. Continue editing the return.

3.21.15.18.5  (01-01-2015)
♦Entity Perfection -- Domestic Addresses♦ Line 1c

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

    Exception:

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

  2. The procedures for perfection of an address are as follows:

    If... And... Then...
    The address contains information other than a street address or P.O. Box   No perfection is necessary, ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed   Edit the new address in the Entity section of the return.
    Form 8822, Change of Address, is attached The information is the same as on the return Take no action
    Form 8822, Change of Address, is attached The information is different Detach Form 8822 and route to Entity Control following local procedures.
    Both a P.O. Box and a street are shown  
    1. Circle out the P.O. Box.

    2. Underline the street address.

    Two street addresses are shown  
    1. Circle out the first street address.

    2. Underline the second street address.

    One street address is shown The taxpayer changed the address to a P.O. Box
    1. Circle out the street address.

    2. Underline the P. O. Box.

    The city or town and state are not shown on the return but are shown on an attachment,   Edit the city or town and state in the Entity section of the return.
    The ZIP Code is missing or illegible,   See Document 7475, State and Address Abbreviations, Major City codes (MCCs), ZIP Codes and Countries to determine the ZIP Code.

    Note:

    Edit the 3 digits followed by "01" of the first zip code listed for the applicable state (e.g., "99501" for Alaska).

    Only the first three digits of the ZIP Code can be determined,   Edit "01" for the fourth and fifth digits.
    The National Change of Address (NCOA) label is present,   Underline the Name Control.
    It is necessary to edit the street address   See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. for current Address/Street Abbreviations.

    Note:

    Always circle out the "in-care-of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

  3. The U.S. Postal Service established new address requirements for Army Post Office (APO), Fleet Post Office (FPO), Diplomatic Post Office (DPO) addresses. If the old address appears (i.e., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP Code (i.e., the previous example would be converted to APO AE 091XX). APO/FPO/ DPO addresses are considered domestic addresses. Refer to conversion chart below:

    ZIP Code Address Country APO/FPO Address
    34000-34049 APO Americas APO AA [ZIP Code]
    34050-34099 FPO Americas FPO AA [ZIP Code]
    340XX-340XX DPO Americas DPO AA [ZIP Code]
    090XX-094XX
    096XX-098XX
    APO Europe APO AE [ZIP Code]
    095XX FPO Europe FPO AE [ZIP Code]
    090XX-098XX DPO Europe DPO AE [ZIP Code]
    962XX-965XX
    98700-98759
    APO Pacific APO AP [ZIP Code]
    966XX and
    98760-98799
    FPO Pacific FPO AP [ZIP Code]
    962XX-966XX DPO Pacific DPO AP [ZIP Code]

3.21.15.18.6  (01-01-2015)
♦General Information and Perfection of Foreign Address♦

  1. This is a 35 character field. Valid characters are alpha (a-z) and numeric (0-9).

  2. A foreign (international) address is any address that is not in the 50 states, the District of Columbia or any of the U.S. Possessions.

  3. Returns with APO FPO or DPO addresses are considered domestic addresses.

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

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

    1. A two-character alpha code must be edited on Line 1f for the possession name.

      U.S. Possession Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI
    2. A ZIP Code must be present. Edit the appropriate ZIP Code if one is not provided.

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

    1. The foreign country must be the last entry in the address. See IRM 3.21.15.18.6.1. for procedures on editing the country code for returns with a Canadian address.

    2. Circle out the foreign country and edit the 2 letter country code preceded by a "/" and followed by "/$" as the last entry in the address.

      Note:

      International Coding and Editing BMF Returns (Foreign Address Job Aid) (Number 2324–002) provides examples for editing foreign addresses.

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

      If... Then...
      A province, state or territory name is present
      1. Circle out province, state or territory name.

      2. Enter appropriate abbreviation.

      A province, state or territory name is not present Continue editing the return.
      Province, state or territory is shown in abbreviated format, Continue editing the return.
    4. A ZIP code is not required on a foreign address. Foreign addresses use a postal code that is entered before the foreign country and is part of the address.


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