3.21.19  Foreign Trust System (Cont. 1)

3.21.19.17 
Computer Condition Codes (CCC)

3.21.19.17.7  (01-01-2015)
CCC "3" - No Reply to Correspondence

  1. Edit CCC "3" (No Reply to Correspondence) to bypass validation of the " CRD" (Correspondence Received Date) when the taxpayer fails to reply to IRS-generated correspondence.

3.21.19.17.8  (01-01-2015)
CCC "4" - 6020(b) Return

  1. Edit CCC "4" when the return is notated "Prepared under IRC § 6020(b) " .

3.21.19.17.9  (01-01-2015)
Computer Condition Code "9"

  1. For Form 3520A only, edit CCC "9" when there is a foreign address. CCC "9" is not valid on Form 3520.

3.21.19.18  (01-01-2015)
Type of Return Filer Checkbox - Question B

  1. Type of return filer must be present.

  2. Valid characters are "I" (i), "P" , "C" , "T" and " E" .

  3. Edit in the margin to the right of the checkboxes following the instruction "Check the box that applies to the U.S. person filing return" as follows:

    If... Then...
    "Individual" checkbox is checked Edit "I" (i).
    "Partnership" checkbox is checked Edit "P" .
    "Corporation" checkbox is checked Edit "C" .
    "Trust" checkbox is checked Edit "T" .
    "Executor" checkbox is checked Edit "E" .
    Multiple boxes are checked or if none of the boxes are checked Research ENMOD using filer name and/or TIN entered on Lines 1a and 1b to determine the correct filing.
    Unable to determine filer type after research Edit "I" (i).

3.21.19.19  (01-01-2015)
Foreign Trust Return Filer Check Box

  1. A filer is required to provide entries in specific parts of Form 3520, based on the checked check box(s) above line 1a, on page 1 of Form 3520.

    1. First Check box (U.S. transferor) is checked, filer must complete page 1 and the relevant lines of Part I.

    2. Second Check box (U.S. owner) is checked, filer must complete page 1 and the relevant lines of Part II.

    3. Third Check box (U.S. beneficiary) is checked, filer must complete page 1 and the relevant lines of Part III.

    4. Fourth Check box (U.S. person who received gift) is checked, filer must complete page 1 and the relevant lines of Part IV.

    .

  2. These are four, 1-position fields. The valid characters are "1 or blank."

  3. The filer can check more than one checkbox, but cannot exceed four checkboxes. An entry must be present in at least one of the four checkboxes.

  4. Edit a "1" to the left of the checked checkbox. However, if multiple checkboxes are checked, edit a "1" next to each checked checkbox.

  5. If the filer did not complete the relevant lines of Part I, II, III or IV in accordance to the checked checkboxes) on Form 3520, page 1, do the following:

    1. Prepare correspondence action sheet 3653C and ask the taxpayer to complete the relevant lines in each Part for the checked checkbox.

    2. Address the letter to the U.S. Agent appointed by the trust. Refer to Lines 3a thru 3g on Form 3520, Page 1 for this information. If a U.S. Agent has not been appointed by the trust, then address the letter to the foreign trust filer whose name and address is found on Lines 1a thru 1h on Form 3520, Page 1.

    3. Edit Computer Condition Code (CCC) "U."

  6. If the filer did not check any of the four checkboxes on Page 1, but did enter data in some or all of Parts I, II, III, and/or IV, then edit a "1" next to the corresponding checkbox for the corresponding completed Part on the return. Refer to above paragraph (1).

    Note:

    You may have to edit more than one checkbox on page one.

3.21.19.19.1  (01-01-2015)
Checkbox 1, Part I - Relevant Lines

  1. Do not correspond for any relevant information until further notice. Ignore remaining instructions and force posting.

  2. The filer must complete the following lines (5a through 19) in Part I, which are relevant to their situation.

    These are relevant lines.
    Lines 5a, 5b and 5c: Prepare correspondence action sheet 3653C and edit CCC "U" when Lines 5a, 5b and 5c are blank. Request the missing information.

    Note:

    Do not correspond for Line 5a, if the filer completed Lines 5b and 5c and left line 5a blank or wrote "SAME" . See the "NOTE" in IRM 3.21.19.24.1 (1) for editing instructions.

    Lines 6a and 6b: Prepare correspondence action sheet 3653C and edit CCC "U" when Lines 6a and 6b are blank and line 2g on page 1 is blank. Request the missing information.

    Note:

    Do not correspond for these lines if an entry appears on line 2g, instead edit the country code from line 2g to lines 6a and 6b. See IRM 3.21.19.24.5 and IRM 3.21.19.24.6 for additional instructions.

    Line 6c: Although this is a relevant line, do not correspond for this line if you are not going to correspond for anything else. Otherwise, follow the instructions in IRM 3.21.19.24.7 (1).

    Caution:

    The year in line 6c cannot be greater than the tax period. If the filer entered 05/14/2013 on a 2012 Form 3520, correct line 6c by editing 05152012.

    Lines 7a and 7b "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when Line 7a is checked "YES" and line 7b, columns I thru IV are not all present. Request the missing information.

    Note:

    Column V of Line 7b is not required, but may be present. See IRM 3.21.19.24.8 thru IRM 3.21.19.24.13 for additional instructions.



    Line 7a "NO" : If line 7a is checked "NO," proceed to line 8.
    Line 11a and 11b "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when both checkboxes 11a and 11b are checked "YES" and Line 11b, columns I, II, III and IV are not all present. Request the missing information.

    Note:

    If checkbox 11a, 13, and 19 are checked "NO" , then no further lines are required to be completed. However, if the filer answered "NO" to the checkbox question on Line 3, Page 1 of Form 3520, then the filer must complete Lines 15 through 18 in Part I, Schedule B. Prepare correspondence action sheet 3653C and edit CCC "U" to request the missing information.



    Line 11b "NO" : If the filer answered "NO" to checkbox 11b, then the filer will skip Schedule A and go to Schedule B to complete columns (a) through (i) of Line 13. Prepare correspondence action sheet 3653C and edit CCC "U" if the columns on Line 13 are not all completed. Request the missing information.
    Line 13 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the checkbox is checked "YES" and columns (a) through (i) are not all present. Request the missing information.

    Line 13 "NO" : If line 13 is checked "NO" do not correspond for Schedule B, The Filer must proceed to Schedule C in Part I. However, If the filer answered "NO" to the checkbox question on Line 3, Page 1 of Form 3520, then the filer must complete Lines 15 through 18 in Part I, Schedule B. Prepare correspondence action sheet 3653C and edit CCC "U" to request the missing information.
    Line 19 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when Line 19, columns (a) thru (e) are not all present and the filer answered "YES" to the checkbox on Line 19. Request the missing information.

    Line 19 "NO" : If Line 19 is checked "NO" then do not correspond.
  3. The following lines are generally not considered to be relevant, but at times may require corresponding for the information.

    These lines are not relevant.
    Line 10 "YES" : Although this line is not relevant a "YES" response requires the filer to check the second checkbox (U.S. Owner) on page 1, as well as complete Part II. Therefore, if the filer did not complete Part II, prepare correspondence action sheet 3653C, edit CCC "U" and request the filer to provide us with the necessary information.

    Line 10 "NO" : If line 10 is checked "NO" or is left blank do not correspond.
    Lines 15-18: These lines are not relevant nor required, unless the filer answered "NO" to the checkbox question on Line 3, Page 1 of Form 3520; only then, must the filer complete Lines 15 through 18 in Part I, Schedule B. Prepare correspondence action sheet 3653C and edit CCC "U" to request the missing information. Otherwise, don't correspond for Lines 15-18.

3.21.19.19.2  (01-01-2015)
Checkbox 2, Part II - Relevant Lines

  1. Do not correspond for any relevant information until further notice. Ignore remaining instructions and force posting.

  2. The filer must complete the following lines in Part II, which are relevant to their situation.

    These are relevant lines.
    Lines 21: Prepare correspondence action sheet 3653C and edit CCC "U" when Lines 21 (a), 21 (b) and 21 (c) are blank. Request the missing information.

    Note:

    Do not correspond for these lines if an entry appears on line 6a, 6b, or 6c. Instead edit the country code and trust creation date from line 6a, 6b or 6c to lines 21 (a), 21 (b), and 21 (c). See the "Note" in IRM 3.21.19.24.7 (1) regarding the trust creation date.

    Line 22 "YES" : If the filer answers "Yes" to Line 22, then the filer must attach the Foreign Grantor Trust Owner Statement to Form 3520 (it can be page 3 of Form 3520-A or a white paper statement/document prepared by the filer).

    Note:

    A white provides the answers to questions on page 3 of Form 3520–A in an essay format selected by the tax payer. It should be titled Foreign Trust Owner Statement but is not mandatory


    Line 22 "NO" : If the filer answers "No" to Line 22, then the filer must attach Form 3520-A. (it can be page 3 of Form 3520-A )

    Note:

    If neither one of these two items are attached to Form 3520, prepare correspondence action sheet 3653C and edit CCC "U" to request this information.

    Line 23: Prepare correspondence action sheet 3653C and edit CCC "U" when Line 23 is not present and the filer did not provide the gross value of the trust on an attachment (e.g. letter, or Page 3 of Form 3520-A. Request the missing information.
  3. The following line is generally not considered to be relevant, but at times may require corresponding for the information.

    This line is not relevant.
    Line 20: If the filer checked the "YES" checkbox on Line 7a, then the filer is required to complete Line 7b columns (i) thru (v) in Part I, and Line 20, columns (a) thru (d) in Part II (column (e) is not mandatory). In this scenario the filer should have checked the first and second filer checkboxes on Form 3520, Page 1. If these lines have not been completed, then prepare correspondence action sheet 3653C and edit CCC "U" . Request the missing information.

    Note:

    If the filer only checked the second filer checkbox on Form 3520, Page 1, and did not complete Line 20 columns (a) thru (d), then do not correspond for the information. This is an irrelevant line.

3.21.19.19.3  (01-01-2015)
Checkbox 3, Part III - Relevant Lines

  1. Do not correspond for any relevant information until further notice. Ignore remaining instructions and force posting

  2. The filer must complete the following lines in Part III, which are relevant to their situation. See IRM 3.21.19.30 (1) for additional information.

    These are POSSIBLE relevant lines.
    Line 24 columns (a) thru (f): If the filer received any distribution from the foreign trust (loans are excluded from reporting on line 24), then they are required to complete Line 24 columns (a) thru (f). However, if the filer did not receive any distribution, then the filer will leave these lines blank. Do not correspond if left blank.

    Reminder:

    If this line is blank, and an entry appears on another line, do not correspond for this line.

    Line 25 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the checkbox on Line 25 is checked "YES" and columns (a) thru (g) are not all present. Request the missing information because the filer must report any loan from the foreign trust on Line 25 columns (a) thru (g).

    Reminder:

    If this line is blank, and an entry appears on another line, do not correspond.



    Line 25 "NO" : If the filer answers "No" to Line 25 or leaves it blank, then they did not receive any loan from the foreign trust. Do not correspond.
    Line 28 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the checkbox on Line 28 is checked "YES" and columns (a) thru (e) are not all present. Request the missing information because the filer must report any outstanding qualified obligation of theirs held by the foreign trust on Line 28 columns (a) thru (e).

    Reminder:

    If this line is blank, and an entry appears on another line, do not correspond.



    Line 28 "NO" : If the filer answers "No" to Line 28, then the foreign trust did not hold any outstanding qualified obligation of the filers during the tax year. Do not correspond.
    Line 29 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the checkbox on Line 29 is checked "YES" but the filer did not attach Form 3520-A, Page 4, Foreign Grantor Trust Beneficiary Statement (FGTBS) to Form 3520. Request the filer complete Part III or submit the FGTBS.

    Line 29 "NO" : Prepare correspondence action sheet 3653C and edit CCC "U" when the checkbox on Line 29 is checked "NO" and the filer did not complete Schedule A (lines 31 thru 38) and C (lines 48 thru 53 if the amount on line 37 is greater than zero).

    Line 29 "N/A" : If the question is "Not Applicable" and the taxpayer did not check any box on Line 29, then check the N/A checkbox, and skip the rest of Part III (Schedules A, B, and C).
    Line 30 "YES" : If Line 30 is checked "YES" then the filer must:
    • Attach the Foreign Nongrantor Trust Beneficiary Statement to Form 3520.

    • Complete either Schedule A (lines 31 thru 38) or B (lines 39 thru 47) in Part III.

    • Complete Schedule C (lines 48 thru 53) if an amount greater than zero appears on line 37 or 41a.


    Prepare correspondence action sheet 3653C and edit CCC "U" if the filer did not comply with the above list.

    Line 30 "NO" : Prepare correspondence action sheet 3653C and edit CCC "U" when the checkbox on Line 30 is checked "NO" and the filer did not complete Schedule A (lines 31 thru 38) and C (lines 48 thru 53 if the amount on line 37 is greater than zero). Request the filer complete Part III Schedule A and C.

    Line 30 "N/A" : If the question is "Not Applicable" and the taxpayer did not check any box on Line 30, then check the N/A checkbox, and skip the rest of Part III (Schedules A, B, and C).
    Line 37 or 41a: Prepare correspondence action sheet 3653C and edit CCC "U" when the amount on line 37 or 41a is greater than zero and Schedule C (lines 48 thru 53) is blank. Request the filer complete Part III Schedule C.
  3. The following lines are generally not considered to be relevant, but at times may require corresponding for the information.

    These lines are not relevant.
    Line 24 thru 53: If the filer checked the second and third Filer checkbox on Form 3520 Page 1 and completed Part II, including answering "YES" to Question 22 and attached Page 3 of Form 3520-A, Foreign Grantor Trust Owner Statement (or a similar Grantor white paper statement/document), then the filer is not required to complete Part III. See IRM 3.21.19.30 (1) for clarifying instructions.
    However, if the Foreign Grantor Trust Owner Statement is not attached, and Part II is complete, but Part III is not, you must correspond for Part III. Prepare CAS 3653C and edit CCC "U."

3.21.19.19.4  (01-01-2015)
Checkbox 4, Part IV - Relevant Lines

  1. Do not correspond for any relevant information until further notice. Ignore remaining instructions and force posting.

  2. The filer must complete the following lines in Part IV, which are relevant to their situation.

    These are relevant lines.
    Lines 54 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the filer answers "YES" to Line 54, and columns 54 (a), 54 (b) and 54 (c) are blank. Request the missing information.

    Exception:

    Do not correspond for these lines if the first line of column (b) reads "No gifts or bequests exceed $5,000."

    Lines 55 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the filer answers "YES" to Line 55, and columns 55 (a) thru (g) are blank. Request the missing information.
    Lines 56 "YES" : Prepare correspondence action sheet 3653C and edit CCC "U" when the filer answers "YES" to Line 56, and the filer did not attach an explanation including the foreign donor’s name, address, identification number (if any), and status as a corporation or partnership to Form 3520. Request the explanation from the filer.

    Exception:

    If the foreign donor is a foreign trust then the filer must treat the amount received as a distribution from a foreign trust and complete Part III of Form 3520.

  3. The following line is generally not considered to be relevant, but at times may require corresponding for the information.

    This line is not relevant.
    Lines 54 "NO" : Do not correspond for Line 54, columns (a), (b), and (c) if the filer answered "No."
    Lines 55 "NO" : Do not correspond for Line 55, columns (a) thru (g) if the filer answered "No."
    Lines 56 "NO" : Take no further action.

3.21.19.20  (01-01-2015)
♦Entity Perfection General♦ - Lines 1a through 1h

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

    1. Employer Identification Number (EIN)

    2. Name

    3. "In-care-of" name

    4. Address

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

  3. Edit Lines 1a through 1h using the following procedures.

3.21.19.20.1  (01-01-2015)
Name of Filer - Line 1a

  1. For filers other than individuals, the name control consists of the first four characters of the filer's (corporation, partnership, trust, etc.) name. Refer to the Name Control Job Aid for additional information: Document 7071 (IMF) or 7071A (BMF) for name control reference guide.

  2. Valid characters are:

    • Alpha (a-z),

    • Numeric (0-9),

    • The ampersand (&), and

    • The hyphen (-).

    • Blanks are valid only at the end of the name control.

  3. Do not include THE in the name control when "THE" is followed by more than one word.

  4. For individuals, the name control consists of the first four letters of the filers LAST name.

  5. Only Underline the name control on Line 1a. See Figure 3.21.19-3

    Figure 3.21.19-3

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.21.19.20.1.1  (01-01-2015)
Name Changes

  1. If the name has been changed so substantially as to indicate the probability of a new entity (i.e., individual to partnership, or partnership to corporation), but the TIN has not been changed:

    • Treat the return as unprocessable; and

    • Route the return to the Entity Section. See Figure 3.21.19-4

    Figure 3.21.19-4

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  2. If the name has not been changed so substantially as to indicate the probability of a new entity (such as a minor spelling change or changes to other than the first name line), follow local procedures for:.

    1. If the change is minor to the first name line; underline the name control and edit TC 013 in the upper left margin of the return.

    2. If the change involves revision to or addition of an in care of name; edit TC 013 in the upper left margin of the return.

3.21.19.20.2  (01-01-2015)
In-Care-of Name Line

  1. Verify that the "in-care-of name" is located above the street address.

  2. Arrow up the "in-care-of name" if located below the address.

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

    Example:

    The taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets

    If... Then...
    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 line Arrow the "in care of" name above the street address.
    The "in care of" name is shown on an attachment Edit the "in care of name" above the street address beginning with the "%" or the "c/o" in the first position.
    An "in-care-of" name is changed but there is no indication of an address change, If the "%" is not present , then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name in the first position followed by the appropriate name.
    An "in-care-of" name is present and an indication of an address change is shown,
    1. If the"%" is not present, then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name in the first position followed by the appropriate name.

    2. Correct the address.

    There is no indication that the "in-care-of" name is changed, If the "%" is not present , then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name (in the first position followed by the appropriate name).

3.21.19.20.3  (06-09-2014)
♦Filer's Taxpayer Identifying Number (TIN) - Line 1b (3520) pg 3 Line 6b (3520-A)♦

  1. A nine numeric character Taxpayer Identifying Number (TIN) must be included on Line 1b of Form 3520 and page 3 Line 6b Form 3520-A submitted for processing.

    Note:


    Line 1b of Form 3520 can be an SSN, ITIN or EIN.
    Line 6b, Page 3, Form 3520–A can be an SSN, ITIN, or EIN.
    Line 2b(1), Form 3520 (when required) must be an EIN.
    Line 1b(1), Page 1, Form 3520–A must be an EIN.

  2. The TIN may be one of the following:

    • An Employer Identification Number (EIN) (entered in NN-NNNNNNN format),

    • A Social Security Number (SSN) (entered in NNN-NN-NNNN format), or,

    • In very rare circumstances, an Individual Taxpayer Identification Number (ITIN) (entered in 9NN-NN-NNNN format).

  3. Circle out an invalid or illegible TIN and edit the correct number if available to the left of the Filer's entry. Entry is considered invalid if:

    • Less than 9 digits

    • Contains 9 repeating digits (999-99-9999, 888-88-8888, etc)

    • Contains any alpha characters.

    Note:

    Line 1b Form 3520 Only - Route all "Initial returns" with an SSN or ITIN to BMF Entity Control so they can establish the Entity with a TC 000 on the BMF.

    Note:

    Line 2b(1) (when required) of Form 3520 Only - If the TIN is an SSN or ITIN, then research IDRS for an EIN number. If found, circle out the SSN or ITIN and edit the EIN on Line 2b(1). If none is found, enter CCC" N" to bypass the EIN requirement.

    Note:

    Line 1b(1) page 1 of Form 3520-A Only - If the TIN is an SSN or ITIN, then research IDRS for an EIN number. If found, circle out the SSN or ITIN and edit the EIN on Line 1b(1). If none is found, enter CCC" N" to bypass the EIN requirement.

  4. Determine the TIN as follows for required TIN fields on Form 3520 and Form 3520-A:

    If... And... Then...
    TIN is missing You can determine the correct TIN from the attachments or schedules Edit the TIN above, below or to the left of the filer's entry.
    Multiple TINs are present  
    1. Circle out all but the first TIN.

    The TIN 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

    The return is unnumbered
    1. If found, edit to the proper location.

    2. For F3520 Line1b and page 3 Line 6b for F3520-A only. If not found,enter CCC" N" to bypass the EIN requirement.

    The TIN 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

    The return is numbered
    1. For F3520 Line 1b and page 3 Line 6b for F3520-A Edit CCC "N-" . to bypass the EIN requirement

    "PENDING" , "APPLIED FOR" , etc. is indicated in the TIN area The return is unnumbered
    1. Edit CCC "N" to bypass the EIN requirement.

    "PENDING" , "APPLIED FOR" , etc. is indicated in the TIN area The return is numbered
    1. . Edit CCC "N" .

  5. Be sure to edit the correct TIN Type indicator after each TIN. See IRM 3.21.19.20.4.

3.21.19.20.4  (01-01-2015)
Filer's Taxpayer Identification Number (TIN) Type - Line 1b

  1. The filer's TIN type must be edited if the filer's TIN is an SSN or ITIN.

    Note:

    These instructions are for use on all TIN line fields transcribed on Form 3520 (pgs. 1-6) and Form 3520-A (pgs. 1-4).

  2. Valid characters are "0" (zero) and "blank" .

    If... Then...
    The TIN entered is either an SSN (NNN-NN-NNNN) or ITIN (9NN-NN-NNNN) Edit a "0" (zero) to the right of the TIN entered by the filer. See Figure 3.21.19-5
    The TIN entered on Line 1b is an EIN (NN-NNNNNNN) No editing is required.

    Figure 3.21.19-5
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.21.19.20.5  (01-01-2015)
Street Address - Line 1c

  1. The street address must be present. The street address can be found on Line 1c.

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

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

  4. 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, State, and Zip Code (for domestic addresses).

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

  5. If two addresses are shown, underline the mailing address (second street address).

  6. If both a P.O. Box and a street address are shown, underline the P.O. Box, City, State, and Zip Code. Edit TC 014.

    Note:

    This paragraph only applies to domestic forms as State or Zip will not be on foreign documents.

  7. If necessary, abbreviate the street address.

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

    • 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.

    • Always input the suite, apartment number, room number, etc. at the end of the street address line.

    • Always input the street suffix, such as street, drive, lane, terrace, etc., if present. See Document 7475 for appropriate abbreviations.

    • Always include the directional information, such as North, South, East, West, etc., if present.

    • If no street address or PO Box is provided by the taxpayer, research IDRS before editing the word "Local" on the street address line.

      Note:

      This should only occur in very small towns.

3.21.19.20.5.1  (01-01-2015)
APO/FPO/DPO Address

  1. The U.S. Postal Service established new address requirements for Army Post Office (APO), Fleet Post Office (FPO) and Diplomatic Post Office (DPO) addresses. If the old address appears "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]

3.21.19.20.5.2  (01-01-2015)
U.S. Possessions

  1. Edit U.S. Possessions addresses in the same manner as domestic addresses. Returns with address changes in the following U.S. Possessions can be input with the return:

    • American Samoa

    • Federated States of Micronesia

    • Guam

    • Marshall Islands

    • Palau Islands

    • Mariana Islands

    • Puerto Rico

    • US Virgin Islands

  2. Returns with addresses in the following U.S. Possessions 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. See Exhibit 3.21.19-2.

    2. A ZIP Code must be present. Edit the appropriate ZIP Code if one is not provided. See Document 7475.

  3. Editing a U.S. Possession country code on a non mailing address line is required on Form 3520 or 3520-A. Again, this does not include any Line 1 country lines on Page 1 of Form 3520 or 3520-A. For example, edit a U.S. Possession country code on lines 2g or 3g of Form 3520, Page 1, or any other transcribed country lines on pages 2 to 6 (e.g. 6a, 6b, 21a, 21b etc...) on Form 3520. Page 1. Use the chart below to select the correct U.S. Possession country code.

    Note:

    U.S. Possession country codes must be edited in the same format as other county codes, (//$).

    U.S. Possession State Code Country Code
    American Samoa AS AQ
    Federated States of Micronesia FM FM
    Guam GU GQ
    Marshall Islands MH RM
    Northern Mariana Islands MP CQ
    Palau Islands PW PS
    Puerto Rico PR RQ
    Virgin Islands (U.S.) VI VQ

3.21.19.20.5.3  (01-01-2015)
Editing TC 014 - Address Changes

  1. TC 014 does not apply to foreign addresses.

  2. Do not perfect the address unless the street address is not easily identified for returns that require no other perfection.

  3. Perfect and input the address (via IDRS) in the following instances:

    If... Then...
    both a P.O. Box and a street address are shown: underline the P.O. Box, City, State, and ZIP Code, and edit TC 014 in the upper left margin of the form.
    two street addresses are shown underline the second street address, City, State, and ZIP Code, and edit TC 014 in the upper left margin of the form.
    the street address has been crossed out by the filer and a P.O. Box added edit TC 014 in the upper left margin; and input a TC 014 per local Campus procedures.
  4. Always circle out the "in care of" (%) symbol if it is shown with an address.

    Figure 3.21.19-6

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  5. If the filer clearly states on an attachment that the address has been changed, edit out the old address, and enter the new address in the entity portion of the return.

  6. If the ZIP Code is missing,

    • Check the attachments, and perfect in the appropriate area.

    • If not found on attachments, follow local Campus procedures.

  7. If abbreviating the street address, see Document 7475 for correct abbreviation.

3.21.19.20.6  (01-01-2015)
♦General Information and Perfection of Foreign Address♦

  1. This is a 35 character field.

  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.

    Note:

    The editing of CCC "9" is required for Foreign Addresses on Form 3520-A.

  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. 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 3.21.19.20.6.1 for procedures for 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:

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

    3. If the foreign address is from Australia, Brazil, Canada, 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.

3.21.19.20.6.1  (01-01-2015)
♦Foreign Address – Canada Only♦

  1. In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province. Use Figure 3.21.19-8 for Form 3520, Line 1h only and Form 3520-A Line 1g. All other lines edit /"CA" /$ for Canada.

    If... Then...
    The foreign address contains a Canadian province name or abbreviation,
    1. See Figure 3.21.19-7 to ensure the correct Canadian province abbreviation is present or edited to the return.

    2. Edit the appropriate country code based on the province preceded by a "/" and followed by a "/$" as the last entry in the address.

    3. See the table below for a complete list of available codes.

    The foreign address does not contain a Canadian province name or abbreviation,
    1. Circle the country name.

    2. Edit the country code "/CA/$" as the last entry in the address.

    Figure 3.21.19-7

    Canadian Province Province Code Country Code Postal Codes begin with
    Alberta AB XA T
    British Columbia BC XB V
    Manitoba MB XM R
    New Brunswick NB XN E
    Newfoundland and Labrador NL XL A
    Northwest Territories NT XT X
    Nova Scotia NS XS B
    Nunavut NU XV X
    Ontario ON XO K, L, M, N, P
    Prince Edward Island PE XP C
    Quebec QC XQ G, H, J
    Saskatchewan SK XW S
    Yukon YT XY Y
  2. The rest of the foreign address is edited using procedures in IRM 3.21.19.20.6.

3.21.19.20.6.2  (01-01-2015)
Address Changes - Foreign Address

  1. A foreign address is any address that is not in:

    • One of the 50 states,

    • The District of Columbia, or

    • Any of the U.S. Possessions.

  2. When a foreign address change is indicated, input an entity change with Transaction Code (TC) 014 with the changed information, plus any unchanged information to make a complete address.

  3. When a foreign address includes a postal (foreign zip) code, edit in accordance with Document 2324-002 Job Aid. See Figure 3.21.19-8a .

    Figure 3.21.19-8a

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.21.19-8b

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  4. When a foreign address is present, a Country Code must be edited on Line 1h using the Country Name entered on Line 1h. See Section 6 of Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

  5. Disregard the above instructions to input a TC 014 if the TIN has not been changed, but the name has been changed so substantially as to indicate the probability of a new entity.

    1. A minor spelling change is not "substantial."

    2. If in doubt, consider the change to be substantial.

    3. Treat such returns as unprocessable and route the return to the Campus Entity Control Group.

3.21.19.20.6.3  (01-01-2015)
"Yes - No" Checkboxes

  1. These are 1-position fields.

  2. Based on the filer's response, ISRP will transcribe as follows:

    1. "Yes" box checked = "1."

    2. "No" box checked = "2" .

    3. Both boxes ("Yes" and "No" ) checked = "3" .

    4. Neither box checked = blank – no editing required.

3.21.19.20.7  (01-01-2015)
Spouse's TIN - Line 1d

  1. The spouses TIN may or may not be present.

  2. An entry will generally be present in this field if the filer files a joint return with the spouse. However, if Line 1d is blank, do not route to entity or correspond for the TIN.

  3. Circle out the spouses TIN if it is incomplete, illegible or invalid.

3.21.19.20.8  (01-01-2015)
Spouse's TIN Type - Line 1d

  1. The TIN Type must be edited if the Spouse's TIN entered on Line 1d is an SSN (or an ITIN).

  2. If an SSN (or an ITIN) is present in line 1d, edit "0" as the TIN TYPE immediately to the right of the spouses Social Security Number (SSN) entered in box 1d.

3.21.19.20.9  (01-01-2015)
City - Line 1e

  1. The city must be present for both domestic and foreign addresses.

  2. The valid characters are, alpha (a-z), blank.

    Note:

    Numbers are not valid, only alpha letters.

  3. Research the ZIP Code directory to determine the city and/or state if:

    • The address is a U.S. address.

    • The city and/or state is missing or incomplete.

    • The ZIP Code is present.

  4. If the city and/or state cannot be determined from the ZIP Code or other available information (i.e., envelope, if attached), edit the filer's address to the Foreign Trust address lines (Form 3520 only).

  5. If the city listed is a major U.S. city, it must be followed by the Zip Code.

  6. If the address is a foreign address which includes a Province designation,

    • Circle out the name of the province.

    • Edit the province abbreviation

    • A province abbreviation must be present for Canadian addresses. See Figure 3.21.19-7

3.21.19.20.10  (01-01-2015)
State or Province- Line 1f

  1. A state must be present for all U.S. addresses.

  2. Valid characters are alpha (a-z) for Form 3520 and Form 3520-A.

  3. If the State name is spelled out, do not edit the two digit state code. ISRP will enter the two digit state code.

  4. If the address is a foreign address ISRP will automatically enter a period blank in the state code field.

    Note:

    If an entry, other than a state or province is present in the state field, then arrow it to its proper placement. If undetermined, circle it out. Or edit a line number e.g. L1, L2, L3 to the left of the filers information.

  5. When the State is missing or illegible, research attachments and/or ZIP Code directory, if not found research IDRS.

    Note:

    See Document 7475. Or edit a line number e.g. L1, L2, L3 to the left of the filers information.

3.21.19.20.11  (01-01-2015)
ZIP Code - Line 1g

  1. The ZIP Code must be present for addresses in the U.S., APO/FPO/DPO and U.S. Possessions.

  2. Only numeric characters (0-9) and blank are valid.

  3. The U.S. ZIP Code must contain at least five (5) and may contain up to twelve (12) characters.

  4. If the address is a U.S. address and the ZIP Code is missing or incomplete,

    • Research the ZIP Code Directory.

    • Edit the correct ZIP Code.

  5. If the address is located in a major city and the ZIP Code is missing or incorrect, perfect the ZIP Code from the ZIP Code chart. See Document 7475.

  6. If the address is a foreign address, edit in accordance to the Foreign Address Job Aid (2324–002).

  7. U. S. and Australian addresses must include Numeric Postal Codes. See Figure 3.21.19-9

    Figure 3.21.19-9
    State Territory Postal Codes
    New South Wales and A.C.T. 2000–2999
    Victoria 3000–3999
    Queensland 4000–4999
    South Australia 5000–5799
    Western Australia 6000–6799
    Tasmania 7000–7499
    Northern Territory 0800–0899

3.21.19.20.12  (01-01-2015)
Country Code - Line 1h

  1. The country must be edited using the applicable foreign country code. See Document 7475, Section 6.

    Caution:

    Do not use the country code for Canada if a province/territory name or abbreviation is shown. Instead use the country code associated with the province/territory code. See IRM 3.21.19.20.6.1 and Figure 3.21.19-7

  2. If the country code is edited as part of a foreign address, edit the country code preceded by a "/" and followed by "/$" .

  3. Do not edit a country code for a U.S. Possession (i.e. Guam, American Samoa, Puerto Rico, etc.)

    Caution:

    The United States is not a country for purposes of Line 1h "Country Code" . Always circle out any references to the United States.

  4. Valid characters are alpha (a-z) only.

3.21.19.20.13  (01-01-2015)
Check box for Married Filing Jointly- Line 1i.

  1. This is a 1-position field.

  2. Based on the filer's response, ISRP will transcribe as follows:

    1. "Yes" box checked = "1."

    2. Neither box checked = blank – no editing required.

3.21.19.20.14  (06-09-2014)
Campus Where Filer's Return is Filed - Line 1j

  1. Service Center Where U.S. Person's Tax Return Is Filed.

  2. Valid characters are alpha (a-z) only.

  3. Edit the code for the Campus named by the filer to the dotted portion of 1j. Accept the filers entry and edit the code only if it is one of the campuses listed below.

  4. If blank or invalid, edit the campus code related to the taxpayers resident state shown on Form 3520 Line 1f, or Form 3520-A Page 3 Line 6h (See Figure 3.21.19-10b). If unsure as to the taxpayers resident state, then edit "AUSC" if the filer on Line 1 (Form 3520) or Line 6a (Form 3520-A Page 3) is an individual or edit "OSC" if the filer is a business entity.

    Reminder:

    An invalid entry is an entry which does not contain the name of one of the campuses listed in Figure 3.21.19-10a .

    Figure 3.21.19-10a

    Submission Processing Campus Code and Campus
    ANSC Andover Submission Processing Campus
    ATSC Atlanta Submission Processing Campus
    AUSC Austin Submission Processing Campus
    CSC Cincinnati Submission Processing Campus
    FSC Fresno Submission Processing Campus
    KCSC Kansas City Submission Processing Campus
    OSC Ogden Submission Processing Campus (Effective January 2007, became the new Campus for processing all BMF International returns)

    Figure 3.21.19-10b

    IF taxpayer lives in... THEN edit the appropriate Campus Code
    Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia ATSC
    Alaska, Arizona, California, Colorado, Hawaii, Idaho, Indiana, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming. FSC
    Kentucky, Louisiana, Mississippi, Tennessee, Texas

    Note:

    Individuals: A foreign country, U.S. Possessions (or are excluding income under Internal Revenue Code § 933), or use an APO or FPO address, or file Form 2555, 2555-EZ or 4563, or are a dual status alien nonpermanent resident of Guam or the Virgin Islands.

    AUSC
    Arkansas, Connecticut, Delaware, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, West Virginia KCSC
    District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, Vermont ANSC
    A Domestic or Foreign address, filing an International business return, OSC

3.21.19.20.15  (04-01-2014)
Extension Filed - Line 1k Checkbox and Tax Form Filed

  1. If an extension was requested for the tax return, check the box.

    1. This is a 1-position field

    2. Based on the filer's response, ISRP will transcribe as follows:
      "Yes" box checked = "1"
      Neither box checked = blank – no editing required

  2. Tax Form Filed: The form number of the tax return to be filed with an extension request along with the Form 3520.

3.21.19.21  (01-01-2015)
Foreign Trust - Lines 2a through 2g.

  1. Lines a through G. identify the entity information of the foreign trust.

  2. Edit Lines a through G. using the following procedures.

3.21.19.21.1  (01-01-2015)
Name of Foreign Trust - Line 2a

  1. The Name of the Foreign Trust must be present if box 2 is checked showing that the filer is an owner of a foreign trust.

  2. Editing of the foreign trust name is not required unless the name on Line a is illegible.

    1. Check attachments and supporting schedules for a clearer, more legible entry.

    2. Edit the name immediately above the filer's entry.

  3. Valid characters are:

    • Alpha (AZ),

    • Numeric (0-9),

    • The ampersand (&), and

    • The hyphen (-).

3.21.19.21.2  (01-01-2015)
Foreign Trust TIN - Line 2B.

  1. The Identification Number of the Trust must be an EIN and may be present if the second filer check box is checked, showing that the filer is an owner of a foreign trust.

    Note:

    An EIN would not be required in cases such as

    1. When the taxpayer is reporting a gift from a foreign person on Part IV
      i.e. When checkbox 4 is checked and line B. is blank,
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when line b is blank

    2. when checkbox 2 is checked and line B. is blank
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when line b is blank

  2. Enter CCC "N" to bypass the EIN. It is not necessary to research IDRS prior to editing the CCC "N" .

3.21.19.21.3  (06-03-2013)
Foreign Trust TIN Type - Line 2B.

  1. See IRM 3.21.19.20.4.

3.21.19.21.4  (01-01-2015)
Foreign Trust Street Address - Line 2C

  1. The Trust Street Address must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. See IRM 3.21.19.20.5 for editing procedures.

    Note:

    If the Trust address is missing, and page 3 of Form 1120-A is attached showing the Foreign trust address or it is present in another line on Form 3520, then edit the Foreign trust address over to line 2C thru G.

3.21.19.21.5  (01-01-2015)
Foreign Trust City Name - Line 2d

  1. The Trust City Name must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. See IRM 3.21.19.20.9 for editing procedures.

3.21.19.21.6  (01-01-2015)
Foreign Trust State or Province- Line 2e

  1. The Trust State Name must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. If the State name is spelled out, do not edit the two digit state code (ISRP will enter the two digit state code). If the Province is spelled out, continue to edit the province code.

  3. See IRM 3.21.19.20.10 for editing procedures.

3.21.19.21.7  (01-01-2015)
Foreign Trust ZIP Code - Line 2f

  1. The Trust ZIP Code must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. See IRM 3.21.19.20.11 for editing procedures.

3.21.19.21.8  (01-01-2015)
Foreign Trust Country Code - Line 2g.

  1. The Foreign Trust Country Code must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. The country must be edited using the appropriate country code. See Document 7475, Section 6.

  3. Valid characters are alpha (AZ) only.

3.21.19.22  (01-01-2015)
U.S. Agent of Foreign Trust - Lines 3a through 3g.

  1. Lines a through G. identify the entity information for the U.S. agent of the foreign trust.

  2. Edit Lines a through G. using the following procedures if Line 3 is checked "YES."

    Note:

    If Yes, and lines a - G. are blank, research attachment (primarily page 3 of Form 3520-A). If found, edit it to Line 3a - 3g. If not found, edit CCC U and prepare correspondence action sheet using IDRS letter 3653C to request the information.

  3. If Line 3 is checked "NO," and the filer checked the first filer checkbox on Form 3520, page 1, then they must complete the relevant line of Lines 15-18, in Part I.

    Note:

    If the relevant line of lines 15-18 are blank, edit CCC U and prepare correspondence action sheet 3653C to request the information.

3.21.19.22.1  (01-01-2015)
U.S. Agent of Foreign Trust Checkbox - Line 3

  1. Taxpayer's response on Line 3 will indicate if the foreign trust appointed a U.S. Agent to discuss trust information with the IRS.

  2. If the "Yes" box is checked then there must be entries in Lines 3a through 3g. However, if the filer checked the "No" checkbox and the first filer checkbox on Page 1, then the filer must complete Lines 15 thru 18 in Part I, Schedule B. See IRM 3.21.19.19.1.

3.21.19.22.2  (01-01-2015)
U.S. Agent Name - Line 3a

  1. See IRM 3.21.19.21.1 for editing procedures.

3.21.19.22.3  (01-01-2015)
U.S. Agent TIN - Line 3b

  1. See IRM 3.21.19.20.3 (5) "If/Then" table for editing procedures.

    Note:

    If line 3b is blank,≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when Line 3b is blank.

3.21.19.22.4  (01-01-2015)
U.S. Agent TIN Type - Line 3b

  1. See IRM 3.21.19.20.4 for editing procedures.

3.21.19.22.5  (01-01-2015)
U.S. Agent Street Address - Line 3c

  1. The U.S. Agent Street Address must be present if the response to Line 3 is "Yes" .

  2. See IRM 3.21.19.20.5 for editing procedures.

3.21.19.22.6  (01-01-2015)
U.S. Agent City - Line 3d

  1. The U.S. Agent City must be present if the response to Line 3 is "Yes" .

  2. See IRM 3.21.19.20.9 for editing procedures.

3.21.19.22.7  (01-01-2015)
U.S. Agent State or Province- Line 3e

  1. The U.S. Agent State must be present if the response to Line 3 is "Yes" .

  2. If the State name is spelled out, do not edit the two digit state code. ISRP will enter the two digit state code.

  3. See IRM 3.21.19.20.10 for editing procedures.

3.21.19.22.8  (01-01-2015)
U.S. Agent ZIP Code - Line 3f

  1. The U.S. Agent ZIP must be present if the response to Line 3 is "Yes" .

  2. See IRM 3.21.19.20.11 for editing procedures.

3.21.19.22.9  (01-01-2015)
U.S. Agent Country Code - Line 3g

  1. See IRM 3.21.19.21.8 for editing procedures.

3.21.19.23  (01-01-2015)
U.S. Decedent - Lines 4a through 4f

  1. Lines 4a through 4f provide the entity information for a U.S. decedent.

  2. Edit Lines 4a through 4f using the following procedures.

    Note:

    If the Executor checkbox is checked, lines 4a to 4f must be completed. Use the following information when editing the U.S. Decedent information entered on Lines 4a to 4f. However, if lines 4a-4g are blank, edit CCC U and prepare correspondence action sheet 3653C for the information.


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