3.21.25  Miscellaneous Tax Returns

Manual Transmittal

November 11, 2013

Purpose

(1) This transmits revised Internal Revenue Manual (IRM) 3.21.25, International Returns and Document Analysis - Miscellaneous Tax Returns.

Material Changes

(1) Various editorial changes and updates have been made throughout this IRM.

(2) Replaced all references to transferrers and transferrers with buyers and sellers respectively.

(3) Replaced routing instructions to PAMC with OAMC.

(4) IRM 3.21.25.1(2) - Moved information to (3). Added the forms to a bullet list for clarity.

(5) IRM 3.21.25.1(3) - Moved information about the databases from (2). Clarified responsibility for processing forms.

(6) IRM 3.21.25.7(2) - Removed correspondence suspense codes.

(7) IRM 3.21.25.10(1) - Deleted the need for Hummingbird. INTL NSA is no longer accessed.

(8) IRM 3.21.25.10(2) - Deleted 897(i) Elections.

(9) IRM 3.21.25.10.3 - 3.21.25.10.11 - Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(10) IRM 3.21.25.13.1(3) - Deleted in Reminder: It is suggested that additional language be added to require contact with a buyer shown on Forms 8288-A that appears to be a escrow company or real estate attorney to determine who the real buyer is.

(11) IRM 3.21.25.13.1.3.1 - Deleted Exception and added Note: To prevent disclosure of Personally Identifiable Information (PII), the Withholding Agent's SSN must be redacted prior to mailing. No redaction of EIN is required.

(12) IRM 3.21.25.13.2(2) and (4)- Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(13) IRM 3.21.25.13.4.3.1- Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(14) IRM 3.21.25.13.5 - Deleted paragraphs (1) and (2) and added new information, including the redacting of the SSN.

(15) IRM 3.21.25.15 - Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(16) IRM 3.21.25.16 - Deleted INTl NSA information.

(17) IRM 3.21.25.16.2 - Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(18) IRM 3.21.16.3 - Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(19) IRM 3.21.25.16.4 - Deleted instructions for accessing and using applications within INTL NSA and added instructions for INTLWebApps.

(20) Exhibit 3.21.25-3 was deleted.

Effect on Other Documents

This IRM supersedes IRM 3.21.25 dated October 26, 2012 (effective January 1, 2013). This IRM also incorporates the following Interim Procedural Updates (IPU): 13U0620 and 13U0365.

Audience

Wage and Investment, Submission Processing employees (AUSPC, CSPC and OSPC)

Effective Date

(01-01-2014)

Paul Mamo
Director, Submission Processing
Wage and Investment Division

3.21.25.1  (01-01-2014)
Overview

  1. This Internal Revenue Manual (IRM) contains processing instructions for use at the Ogden Submission Processing Center (OSPC). In addition, Austin Submission Processing Center (AUSPC) uses this IRM to credit verify Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests.

  2. The work is processed to the International Web Applications(INTLWebApps); formerly INTL NSA. The application performs processing, storage and retrieval of

    • Form 8288-A,Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests,

    • Form 8288-B,Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests,

    • Form 8233,Exemption from Withholding on Compensation for Independent (& Certain Dependent) Personal Service of a Nonresident Alien Individual, and

    • Form 8805,Foreign Partners Information Statement of Section 1446 Withholding Tax.

  3. INTLWebApps is an Oracle application that houses three databases:

    • Foreign Investment Real Property Tax Act (FIRPTA), Form 8288-A and Form 8288-B,

    • Project 1446, Form 8805, and

    • Form 8233.

    The databases are used by Submission Processing (Form 8288-A and Form 8805) and Accounts Management (Form 8288-B and Form 8233) to process International returns filed by foreign persons or entities that sell U.S. Real Property Interests (USRPI) in this country, invest in a domestic partnership in the United States, and claim Tax Treaty BenefitsThe application also initiates correspondence to taxpayers who file Form 8288-A.

  4. The following related resources are also used by Submission Processing to process Form 8805 and 8288-A documents:

    • IRM 3.21.261, International Returns and Document Analysis - Foreign Investment in Real Property Tax Act (FIRPTA), for additional information.

    • IRM 3.21.15, International Returns and Document Analysis - Foreign Partnership Withholding, for additional information.

    • Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for additional information.

  5. All Business Master File (BMF) International returns received at IRS offices (Campuses, Field Offices, etc.) other than OSPC must be transshipped to OSPC, with the exception of Non-Master File (NMF) Form 1040-NR Estate or Trust, Form 8288 (Date of Transfer (DOT) prior to 12/13/05), and Form 8804 (tax period 200411 and Prior), which must be transshipped to Cincinnati Submission Processing Center (CSPC) for processing. However, you must first:

    1. Date stamp the document,

    2. Deposit any payment associated with the return, and then

    3. Expeditiously transship the return to the OSPC

  6. In general, a copy of Form 8288-A stamped by the IRS must be attached to the transferrers (seller's) return to establish the amount withheld under IRC § 1445(a) which is available as a credit. In situations where the tax has been withheld but the transferee (buyer) does not pay over the amount withheld to the IRS, the seller will not receive a stamped copy of Form 8288-A from the IRS. Nonetheless, the seller can establish the amount of tax withheld by the buyer by attaching to its tax return substantial evidence (e.g., closing documents) of the amount of tax withheld.

3.21.25.1.1  (01-01-2014)
Organization, Function and Program (OFP) Codes

  1. Use the following program codes to record the time spent processing Form 8288-A and Form 8805.

    • For credit verification of Forms 8288-A use Program 11331 (OSPC) and Program 11330 (AUSPC).

    • For recording Form 8288-A in the INTLWebApps Database, use Program 71750 (OSPC Only).

    • For recording Form 8805 in the INTLWebApps Database, use Program 71770 (OSPC Only).

    Note:

    Consult local management to ensure use of the correct code.

3.21.25.2  (01-01-2014)
♦BMF Consistency♦

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

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

3.21.25.3  (01-01-2014)
♦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, 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.

    Note:

    A case meeting TAS criteria may be retained in the general program when the problem has been corrected or will be resolved immediately (within 24 hours) to the taxpayer's satisfaction.

    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.

3.21.25.3.1  (01-01-2014)
♦TAS Service Level Agreements (SLA)♦

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business and Self-Employed (SB/SE) Division, Tax Exempt and Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals and Large Business and 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 "TAS Favorites."

3.21.25.4  (01-01-2014)
♦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 and 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 or Voicemail." 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.

3.21.25.5  (01-01-2014)
♦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 or Voice Mail.

3.21.25.6  (01-01-2014)
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 Command Code (CC) CFINK on the Integrated Data Retrieval System (IDRS) for the Power of Attorney (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 IRC7213A 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 through IRM 11.3.40,Disclosure of Official Information.

3.21.25.7  (01-01-2014)
♦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, Section 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 (86C, 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. Continue editing the return.

    4. Leave the return in the batch.

    Correspondence is needed Does not require a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (86C, 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.

3.21.25.7.1  (01-01-2014)
♦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 attached The return is not complete (e.g., missing signature, schedules or forms) Follow normal correspondence procedures.

3.21.25.7.2  (01-01-2014)
♦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 the letter to resubmit in U.S. currency.

3.21.25.8  (01-01-2014)
♦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" 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.

    Red Line Form 8288-A Only:Used by C and E to edit Form 8288-A Lines 1, 2, 3, 4 and the seller name and TIN fields. Delete the name of the incorrect seller when multiple (e.g. John and Jane Doe) sellers are listed.

    Example:

    When sending the 8288-A to Jane Doe edit a red line through John and leaving Jane Doe visible.

    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:

    C and E 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.

3.21.25.9  (01-01-2014)
ITIN Guidance for Foreign Buyers/Sellers of U.S. Property

  1. Foreign buyers (transferees) and/or sellers (transferrers) of U.S. real property interests need identifying numbers to obtain reduced withholding or pay tax. Here’s guidance for those who need to request Individual Taxpayer Identification Numbers (ITINs).

  2. Foreign buyers and sellers of U.S. real property interests need Taxpayer Identification Numbers (TINs) to request reduced tax withholding when disposing of the property interest, and to pay any required withholding. Individuals who do not qualify for Social Security Numbers (SSN) may obtain Individual Taxpayer Identification Numbers (ITINs) to meet the requirement to supply a TIN.

  3. The Internal Revenue Service implemented new procedures, effective December 17, 2003, to strengthen controls on ITINs and ensure the numbers are issued for tax administration purposes only. To help your qualifying clients obtain ITINs without undue burden, see the instructions for Form W-7 and Form W-7 (SP) and the information below, which describes how the new process impacts FIRPTA (Foreign Investment in Real Property Tax Act) processing.

  4. TINs required for withholding (Form 8288 and Form 8288-A ) - Treasury Decision 9082 (effective August 5, 2003) requires all buyers and foreign sellers of U.S. real property interests to provide their TINs, names and addresses on withholding tax returns, applications for withholding certificates, notice of non-recognition, or elections under sections 897(i) when disposing of a U.S. real property interest. The buyer withholds tax under IRC § 1445 and remits it to the Internal Revenue Service on Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interest, and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (FIRPTA).

  5. TINs required for requests for reduced withholding (Form 8288-B) - A seller looking to reduce or eliminate the FIRPTA withholding amount must file a Form 8288-B, Application for Withholding Certificate for Disposition by Foreign Persons of U.S. Real Property Interests. Since Form 8288-B requires a TIN, a seller and/or buyer who does not qualify for an SSN may apply for an ITIN by attaching Form 8288-B to Form W-7 and mailing the documents to:

    Internal Revenue Service
    Austin Service Center
    ITIN Operation
    PO Box 149342
    Austin TX 78714-9342

  6. Requesting an ITIN to meet FIRPTA TIN requirements - In order to obtain an ITIN number for FIRPTA purposes the foreigner must complete Form W-7 or Form W-7 (SP). Select Box "h" (other) in the "Reason you are submitting Form W-7" section of Form W-7, and Exception 4 (explained in the instructions). Write "Exception 4" in the write-in area to the right of Box h (other).

  7. ITIN requests to claim reduced withholding (Form 8288-B) - The IRS will only issue ITINs based on applications that are complete and demonstrate a tax need for the numbers. If the IRS rejects the ITIN application, Form 8288-B will not be processed. The IRS ITIN Unit will notify the applicant by mail that the Form W-7 was not processed and the FIRPTA Unit in Ogden Accounts Management Campus (OAMC) will send Letter 3793 (SC/CG) to the buyer and foreign seller with instructions to complete Form W-7 and reapply. This letter will include instructions to resolve the issue outlined in the ITIN rejection letter. When reapplying, the applicant must include a copy of Letter 3793 SC/CG with Form W-7 to be considered under Exception 4. If the reason for rejection cannot be resolved, then the buyer must file Form 8288 and Form 8288-A and remit the 10% tax.

  8. ITIN requests to pay withholding on Form 8288 and Form 8288-A:

    If a buyer does not have a TIN,
    If a buyer does not have a TIN and an amount withheld under section 1445 is due to the IRS, the buyer must complete Form 8288 and 8288-A and mail the forms along with the payment to Internal Revenue Service, Ogden Submission Processing Campus, PO Box 409101, Ogden UT 84409, by the 20th day from the date of the sale
    In a separate package, mail a completed Form W-7 with supporting documentation and a photocopy of Form 8288 and 8288-A (do not send any payment) to Internal Revenue Service, Austin Submission Processing Campus, ITIN Operation, PO Box 149342, Austin TX 78714-9342. Make sure you select reason "h" and write "Exception 4" on right side of reason line "h" . The Austin IRS campus will fax Form 8288 and Form 8288-A to the Ogden campus.
    The Ogden Submission Processing Campus will not date stamp or mail out Form 8288-A, Copy B to the foreign seller, if the sellers TIN is missing. Instead, Ogden IRS will mail letter 3794 SC/CG to the seller with instructions to apply for an ITIN. Once the seller receives the ITIN number they are to write it on the letter 3794 SC/CG and mail it back to the Ogden IRS office. The Ogden IRS office will document the ITIN number on Form 8288-A Copy B, date stamp "Copy B mailed" on it, and mail it out to the seller.
    If the Ogden IRS office receives a completed Form W-7 application with supporting documentation attached to Form 8288 and 8288-A, then the Ogden IRS office will detach Form W-7 with supporting documentation and mail it to the Austin IRS Campus ITIN Operation along with a photocopy of Form 8288 and 8288-A. Once Austin processes the W-7 application they will edit the ITIN number on Form 8288 or 8288-A and fax it to the Ogden IRS office FIRPTA unit. The Ogden IRS office will document the ITIN number on Form 8288-A Copy B, date stamp "Copy B mailed" on it, and mail it out to the seller.


    If a seller does not have a TIN,
    If a seller does not have a TIN and an amount withheld under section 1445 is due, the seller should complete Form W-7 and attach a copy of Form 8288 and/or Form 8288-A and mail the required documents to Internal Revenue Service, Austin Submission Processing Campus, ITIN Operation, PO Box 149342, Austin TX 78714-9342. The ITIN Operation will assign an ITIN number, edit it on Form 8288-A or list the information on a Form 3210, "Document Transmittal" and fax it to the Ogden Code and Edit FIRPTA unit. The FIRPTA unit will update the International WebApps Database, pull Form 8288-A Copy "B" from the pending wall, date stamp Form 8288-A "Copy B Mailed" and mail it to the foreign seller.
    If the seller sends Form 8288 and Form 8288-A to the IRS for processing but does not list a TIN on the forms and does not attach a Form W-7 ITIN application, the IRS will process the forms, but will not date stamp Form 8288-A "Copy B Mailed" or forward it to the foreign seller. Instead, the IRS will mail Letter 3794 SC/CG or IDRS letter 3794C to the foreign seller, instructing the seller to apply for an ITIN by filing Form W-7. The applicant must include supporting documentation listed in the Form W-7 instructions, and must also attach a copy of Letter 3794 SC/CG or 3794C with Form W-7 to be considered under Exception 4. If an ITIN is assigned, the IRS will list the ITIN on Form 8288-A and forward a date stamped copy to the foreign seller.
    If the seller attaches a copy of Form W-7 ITIN application to Form 8288 and Form 8288-A, the FIRPTA unit research the ITIN database for the ITIN number. However, if the FIRPTA unit discovers that the IRS rejected Form W-7 because it was incomplete or did not demonstrate a tax reason for applying for an ITIN, the IRS will continue to process Form 8288 and Form 8288-A. The FIRPTA unit will not date stamp Form 8288-A "Copy B Mailed" or forward the form to the foreign seller (if it is the foreign seller whose TIN is missing). Instead, the IRS will mail Letter 3794 SC/CG or 3794C to the foreign seller with instructions to complete and file Form W-7. The applicant must include supporting documentation listed in the Form W-7 instructions, and must also attach a copy of Letter 3794 SC/CG or 3794C with Form W-7 to be considered under Exception 4. Make sure you select reason "h" and write "Exception 4" on the right side of reason line "h" on Form W-7.

    Note:

    If you receive a call from a foreigner or their representative inquiring about the ITIN number, instruct them to call 1-800-829-1040 or 1-800-908-9982 (if they are calling from within the U.S.). If the caller is calling from outside of the U.S., or has questions on International issues, then instruct them to call 267-941-1000. However, if the taxpayer says they called those numbers for assistance and received no assistance, then complete Form 4442, "Inquiry Referral," and fax the completed form to the ITIN Operations at the Austin Submission Processing Campus, when the foreign individual calls you for assistance in getting their ITIN number because they cannot reach anyone for assistance. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.21.25.10  (01-01-2014)
International Web Applications (INTLWebApps) Database System

  1. Foreign Investment in Real Property Tax Act (FIRPTA) and Foreign Partnership information statements (Form 8288-A and Form 8805) are stored on an Enterprise Tier II SUN system known as the "INTLWebApps" Database.

  2. The INTLWebApps Database consist of three applications. They are:

    • FIRPTA Database

    • Project 1446

    • Form 8233

  3. You must request access to each database contained within INTLWebApps that you intend to use. You will receive a user name and password to each one. To gain access, you must first initiate an OL5081.

    1. Login into OL5081 and request a new application.

    2. In the search screen, enter INTL WEB in the OL5081 Application Name box. Click the Search button.

    3. Click the Select One or More box to select it. Click Next.

    4. Under Supplemental Form, click INTLWebApps.

    5. Select Project 1446 for Form 8805 and/or FIRPTA for Form 8828-A. Click Next.

    6. Click the Submit button.

  4. After the OL5081 has been submitted, managers should forward a list of employees to the HQ Analyst. The HQ Analyst will forward the list to the INTLWebApp's programmers. The list should include:

    • The employee's name as listed in the Global Directory.

    • The employee's SEID.

    • The sub-applications requested.

  5. Once access is obtained, the employee will need to access INTLWebApps via the internet with the url: http://ds00116.dcc.irs.gov:7005/INTLWebApps/

  6. When logging on for the first time, the employee will use the unique user name and password given to them by the programmers. The employee will then need to change their password. This will have to be done for each sub-application.

  7. The Database is a "user friendly" Database with push-button or data entry fields. Please refer to your Job Aid for guidance on entering Form 8288-A and Form 8805 data to the Database, or when doing credit verifications.

  8. The information captured in the FIRPTA Database is used to;

    1. Support compliance functions.

    2. Verify Form 8288-A and Form 8805 credits claimed on Form 1040-NR, Form 8804, Form 1120-F, and Form 990-T returns.

  9. The INTLWebApps Database is not a Master File program and does not interface with IDRS, Master File, or Non-Master File.

  10. Logging into the FIRPTA database will give you the option to input a new Form 8288-A (IRMF), search or edit a Form 8288-A, input Quicknotes and issue letters, and delete duplicate Form 8288-A.

    • Form 8288-A (Information Return Master File) (IRMF) (Effective 07/01/2013))

      Selecting the Form 8288-A (IRMF) menu option will direct you to the Form 8288-A data entry screen. A blank screen will appear ready for input. Once added, you must "SAVE" the record.

    • Search/Edit

      Selecting the Form 8288-A Search/Edit option will direct you to the Form 8288-A query screen. If you wish to query certain generic information you must use the wildcard sign "%" before and after your information.

      Example:

      To query the year of the transfer enter %2012% in the date of transfer field. The response will be all the Form 8288-A records with a 2012 date of transfer year.

    • Form 8288 Quicknotes

      Selecting the Form 8288 Quicknotes option will allow you to select the Contact (employee contact information), 3296 (Mailout 8288-A, Copy B), 3302 (Firpta Checklist), and 3794 ( No TIN 8288-A) options. You must first select Contact to verify that your employee contact information, which will be printed on all your letters is present in the "Contact Information" table. If not, then you must add, and save it. Once the letter is composed, click the Print Button. Click Open on the next menu and verify that the letter is correct before saving and printing it.

      When drafting a letter from the INTLWebApps Database FIRPTA Quick Notes Selection Menu format the foreign address using the following examples. See Document 7475 Section 5, page 32.

      Caution:

      Do not use or write the in care of name in the address or additional address line. In addition, if the taxpayer writes United Kingdom, England or Great Britain as their country, always use United Kingdom. Never use Great Britain or England as the country on any FIRPTA Quick Note address. For Canada Only:"always insert two spaces between the Province abbreviation and the Postal Code."

      Acceptable Foreign Address Format for Quick Notes
      Drew Allen (enter on Name line)
      629 East Kearney (Enter on address line)
      Hertfordshire London WIP 6HQ (Enter on additional address line the foreign city, province, or county and foreign postal code.)
      United Kingdom (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

      Palomar Trust (enter on Name line)
      1 Tyler St (Enter on address line)
      Pepper NSW 2014 (Enter on additional address line the foreign city, province, or county and foreign postal code.)
      Australia (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

      Austin and Alma Salzach (enter on Name line)
      Goelsen Platz 8 (Enter on address line)
      Berlin D-12274 (Enter on additional address line the foreign city, province, or county and foreign postal code.)
      Germany (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

      Jean Jamapa (enter on Name line)
      AV Raton 328-653 (Enter on address line)
      Col. El Tepeyac 06500 (Enter on additional address line the foreign city, province, or county and foreign postal code.)
      Mexico DF (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

      Kelly and Sue Rhine (enter on Name line)
      16 Noye Rue (Enter on address line)
      75001 Paris (Enter on additional address line the foreign city, province, or county and foreign postal code.)

      Note:

      In some countries, the postal code may precede the city or town name.


      France (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

      Wapusk Title Co (enter on Name line)
      81 Skeena Rd., Ste. 6 (Enter on address line)
      Vancouver BC V6A 6M7 (Enter on additional address line the foreign city, province, or county and foreign postal code.)
      Canada (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

      Charles Thelon (enter on Name line)
      620 Sussex Dr. (Enter on address line)
      Halifax NS B3H 3J4 (Enter on additional address line the foreign city, province, or county and foreign postal code.)
      Canada (Enter the foreign country in the city field. This must not be abbreviated).

      Note:

      Do not enter anything in the State or Zip Code Fields.

  11. Log in to the Project 1446 database to input and Query Form 8805.

    • New

      Selecting "New" will direct you to the newly established Form 8805 input screen, which is ready for adding a record. Every Form 8805 entered in this Database must be for tax period ending 200412 or subsequent. In addition, each Form 8805 must have their own specific Document Locator Number (DLN) beginning with "60546" (98546 was used prior to 06/30/2007). Once Form 8805 has been added, you must "SAVE" the record.

    • "Search/Edit"
      Use the Search/Edit menu selection to query Form 8805. When verifying the Form 8805 credit, document the amount, tax period and form number in the remarks area. If the date and the employee ID does not auto-generate, input the information.

3.21.25.11  (01-01-2014)
Attachments

  1. Refer to IRM 3.21.15, International Returns and Document Analysis - Foreign Partnership Withholding, and/or IRM 3.21.261, International Returns and Documents Analysis - Foreign Investment in Real Property Tax Act (FIRPTA) for instructions related to any attachments. The title of the subsection is "Routing Guide for Attachments."

3.21.25.12  (01-01-2014)
BBTS Routing of FIRPTA Documents

  1. Prior to Integrated Submission and Remittance Processing (ISRP) the Batch Block Tracking System (BBTS) routing should be setup. The Batch work is forwarded to the FIRPTA unit. The FIRPTA unit will:

    FIRPTA Form 8288 Program 11330 Route 17 (Non- Remit) Route 18 (W/ Remit)
      180 - Batching 170 - Manual Deposit
    210 - Code and Edit 150 - Deposit
    190 - Numbering 210 - Code and Edit
    300 - BBTS/8288-A 300 - BBTS/8288-A
    230 - ISRP 230 - ISRP
    610 - SYSTOPNS 610 - SYSTOPNS

    1. Stamp the incoming Batch work (Form 2345, Batch Transmittal) with the "FIRPTA" stamp.

    2. Assign the Batch work to a FIRPTA tax examiner who will process and populate the Form 8288-A FIRPTA Database with each foreign seller's Copy A information, which will be used at a later date to perform the International Credit Verifications using Form 13698, International Credit(s) Verification Slip.

      Example:

      Form 1120-F, Form 8804, or Form 1040-NR Estate or Trust with a Form 8288-A needs to be credit verified.

    3. Stamp and mail "Copy B of Form 8288-A" to the foreign seller with IDRS Letter 3296C.

    4. Stamp Form 8288 with the FIRPTA date stamp to show that they have processed Copy A of Form 8288-A to the FIRPTA Database.

    5. Release the Batch work (Form 8288 and Copy A of Form 8288-A) to the ISRP clerical function for pipeline processing.

3.21.25.13  (01-01-2014)
Checking Form 8288-A for Completeness

  1. Every Form 8288 must have one set (Copy A and B) of Form 8288-A attached to it for each number of Form 8288-A listed on Line 4 of Form 8288.

    Example:

    If Line 4 of Form 8288 displays a total number of "3" Form 8288-As submitted with Form 8288, then there must be 3 sets of Copy A's and B's for each foreign seller.

  2. If, as in the example above only 3 Copies (either A or B) are attached (No sets) you must photocopy each Form 8288-A to complete 3 sets. Edit the name of each of the 3 sets by crossing out (use red ink) two seller names, and dividing the amount realized and withholding tax into one third for each seller. The end result will be three sets of Form 8288-A (one for each seller).

  3. If Form 8288-A is not completely filled out, then review Form 8288 for the information and edit it onto Form 8288-A. If unable to locate the information, or Form 8288-A is/aren't attached, then correspond for the required information. However, when a phone number is present, call the taxpayer and have them FAX the information to you. If the telephone number is an international number do not call, but correspond.

    Reminder:

    If Form(s) 8288-A is/are not attached to Form 8288, you must still create a Form 8288-A record in the Form 8288-A IRMF FIRPTA Database by using the information off of Form 8288 (prior to releasing the batch work to ISRP). ERS/REJ will coordinate with Code and Edit once they receive the 8288-A from the taxpayer to update the Form 8288-A record. See IRM 3.21.25.13.2 and IRM 3.21.25.13.2.1.

    1. Form 8288 DLN.

    2. Date of Transfer (DOT) (See IRM 3.21.261.15.8 (9)) for additional instructions for when the DOT is missing).

      Exception:

      The DOT is required when corresponding. Therefore, if Form 8288 is no longer accessible, and the Form 8288-A has no DOT, research IDRS to see where the money posted. If located, then use the YYYYMM of the payment and the first day of the month to complete the DOT. Use this date on your correspondence. If unable to locate the money, use the first day of the previous month as the DOT for the correspondence letter.

    3. Depress the tax paid button if the FIRPTA W/H tax was paid. Otherwise, do not depress it.

    4. Enter the amount realized shown on line 5 Part I or lines 5a, 5b or 5c of Part II on Form 8288.

    5. Depress the appropriate W/H Agent TIN Type button.

    6. Enter the W/H Agents Taxpayer Identifying Number (TIN).

    7. Enter the W/H Agents name shown on line 1 of Form 8288.

    8. Enter the Real Property Description (RPD) shown on line 2 of Form 8288.

    9. Enter the two digit RPD state code.

    10. Enter "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " for the TIN of the seller.

    11. Skip the Copy B Mailed field.

    12. Enter "Unknown" for the foreign seller name.

    13. Enter "Missing" in the address line.

  4. If Form 8288-A is incomplete, and you are unable to complete it with the information available on the attached Form 8288, then request the information from the buyer using Correspondence Action Sheet (CAS) Letter 3104C.

  5. Loose Forms 8288-A with green check mark: Some title companies, buyers, escrow companies, Certified Public Accountants (CPAs), attorneys and realtors may send FIRPTA payments to deposit activity areas without a Form 8288. Transship loose Form 8288-A documents to OAMC BMF INT'L unit.

  6. Loose Forms 8288-A: AUSPC ITIN function will at times transship to OSPC copies of Form 8288-A with the assigned ITIN number written in red ink. Research the Form 8288-A on the pending wall to see if there is a Form 8288-A awaiting to be mailed. If so, follow the IRM procedures in IRM 3.21.25.13.2. If not, then draft FIRPTA Quickie Note 3302 SC/CG (addressed to withholding agent) and select checklist item, "Other" Write the following narrative in the open paragraph field: "We are returning the attached loose Form 8288-A. Please complete Form 8288 and/or Form 8288-A (Copy A and B) and attach the withholding payment to it and mail it to the Internal Revenue Service, Ogden, UT 84201."

3.21.25.13.1  (01-01-2014)
Reviewing Form 8288-A

  1. When Form 8288/8288-A batch work is received for processing you must:

    1. Review Form 8288-A for the foreign persons TIN, name and address.

    2. Make sure you received both Copy A and B of Form 8288-A for each foreign seller.

      Caution:

      The amounts on Form 8288-A, lines 2 and 3 must balance with Form 8288. If they don't balance, correspond for an explanation using CAS 3104C. If no reply is received, continue to process return as is, and enter the Form 8288-A information into the Database as it appears on the Form 8288-A.

      IF, THEN,
      Either one of Copy A and B of Form 8288-A are not attached, See IRM 3.21.25.13.3 for instructions.
      Multiple foreign sellers are listed on Form 8288-A, See IRM 3.21.25.13.3 for instructions.
      No Form 8288-A is attached, but it is obvious that it was attached (e.g. detached by ITIN) and there is supporting documentation to (e.g. settlement statement, taxpayer correspondence, etc...) support this fact. Prepare a dummy Form 8288-A using the PDF fillable form for however many Forms 8288-A are listed on Line 4 of Form 8288. Print out the completed forms and attach it to the return. Continue processing.

      Note:

      Do not dummy a Form 8288-A when the Name, TIN and mailing address of the foreign seller is not present in the supporting documentation. Instead correspond for Form 8288-As with Letter 3104C. See IRM 3.21.25.13 (3).

      The foreign seller on Form 8288-A has no TIN,
      Or,
      Multiple foreign sellers, but only one does not have a TIN number,
      Continue to process Form 8288-A, but do not stamp "Copy B Mailed" or mail the Form 8288-A to the foreign seller. However, place Copy B of Form 8288-A in a folder marked "Copy B 8288-A No TIN" (filed in Alpha order). Place it on the pending wall. Send out IDRS Letter 3794C or Select Quicknote menu selection 14 to mail Letter 3794 (SC/CG) to the foreign seller. Also, annotate on the reverse side of Form 8288-A Copy B, the date Letter 3794 was mailed.

      Reminder:

      Purge all"Form 8288-A Copy B" with a DOT of 12-31-2014 and prior from the pending wall the first week of January 2014 and mail them out to the foreign seller without the TIN number. Update the 8288-A IRMF database "Copy B mailed" field with the mail out date. Complete all mail outs (including Letter 3296) by January 14, 2014.

      Note:

      Begin a new pending wall every year for the "No TIN 8288-A Copy B" documents beginning with DOT 01-01-2014.

      Reminder:

      If the foreign person or entity provided an alternate mailing address on Form 8288-A (lower right corner box), then mail Form 8288-A Copy B to the foreign person or entity using the alternate mailing address.

  2. Buyer and Seller are the same on Form 8288 and Form 8288-A:

    1. Correspond with / or call the Taxpayer. Prepare CAS Letter 3104C and request corrected returns with the correct Name, Address and TIN numbers for both parties.

    2. Enter Form 8288-A into the INTLWebApps Database. Use the provided taxpayer information as the W/H Agent information to record the Form 8288-A in the database. However, enter "Unknown" for the seller (Foreign person) name, and "≡ ≡ ≡ ≡ ≡ ≡ " for the TIN, and "Missing" for the address line.

    3. Edit CCC "U" on Form 8288 (follow procedures in IRM 3.21.261).

  3. Buyer/Withholding Agent on Form 8288-A and Form 8288 are not the same: Take the following steps:

    Reminder:

    The actual buyer should be someone other than a Title, Escrow, or Abstract company, or an Attorney, CPA or PA. If unsure, refer to above paragraph (2) for instructions. Escrow companies and real estate attorneys sometimes incorrectly complete Forms 8288 and 8288-A listing themselves as the buyers when handling multiple real estate transactions involving foreign sellers subject to FIRPTA withholding . This results in the creation of only one MFT 17 account since only one can be created under a TIN/EIN. When multiple Forms 8288 and 8288-A are filed by the same escrow company for different real estate transfers, only one TC 150 is created for the first Form 8288 filed, and any subsequent FIRPTA forms filed after the first real estate transfer is recorded as a TC 290. There is only one transfer date recorded on the MFT 17 account for the first Form 8288 filed. This creates a problem for the escrow company as it may receive penalty notices for deposits IRS thinks are late since they are being made after the only transfer date shown on the MFT 17 account. Additionally, if the escrow company fails to file any Forms 8288 and 8288-A, the foreign seller may find it difficult to locate the FIRPTA income tax withheld since it is recorded in the escrow company’s MFT 17 account and not the MFT 17 account of the real buyer.

    1. Use the actual buyers information from Form 8288 or Form 8288-A, as the withholding agent to report on Line 1 of Form 8288, or prepare a new Form 8288-A with the actual buyers information edited in the withholding agents block of Form 8288-A.

      Note:

      To prevent disclosure of Personally Identifiable Information (PII), the Withholding Agent's SSN must be redacted prior to mailing. No redaction of EIN is required.

    2. Enter the data from the newly prepared Form 8288-A into the Form 8288-A Database.

    3. Draft Letter 3296 (SC/CG) or Letter 3296C. In addition, date stamp the 8288-A Copy B and mail it out to the foreign seller with the letter.

      Note:

      If an alternate mailing address appears on Form 8288-A, below box 6, then mail Form 8288-A Copy B to the foreigner at the mailing address listed in the box. Also, document the alternate mailing address in the "Remarks" area of the 8288-A database.

      Reminder:

      If the Form 8288-A doesn't have a TIN then don't date stamp or mail the Form 8288-A "Copy B" to the foreign seller.

  4. If Letter 3794 or Letter 3296 is returned undeliverable, research IDRS and the FIRPTA Database for a better address. If found, send out a new Letter 3794 or Letter 3296 to the foreign person at the new address. In addition, update the Database with the new address. For Letter 3794 only: Pull Form 8288-A Copy B from the wall and on the reverse side document the new mailing date of Letter 3794. Lastly, place the Form 8288-A Copy B back on the wall.

    Note:

    If you are unable to locate a better address, pull the Form 8288-A Copy B from the pending wall and update the Form 8288-A record in the Database with the remarks "Letter 3794 or 3296 undeliverable. " After this is done, Classify Waste (CW) the documents (Letter 3794 or 3296 and Form 8288-A Copy B).

3.21.25.13.2  (01-01-2014)
Processing Form 8288-A

  1. Every Form 8288-A must be entered into the 8288-A (IRMF) Database. Use the 8288 DLN on the header screen portion of the 8288-A (IRMF) screen. See IRM 3.21.25.13 (3) for additional instructions.

    Example:

    If 3 sellers are listed on the Form 8288-A, then there needs to be 3 sets of Form 8288-A attached to Form 8288. Enter all 3 Form 8288-As into the Database (1 for each seller) with the same Form 8288 DLN.

    Caution:

    Do not enter duplicate Form 8288-A records in the 8288-A IRMF database. If you have a photocopy of Form 8288, and the signature is not an original signature (photocopied), then query the Form 8288-A database for a prior recorded Form 8288-A record. If you locate the Form 8288-A record, then do not enter a duplicate Form 8288-A into the database. Otherwise, continue normal processing.

  2. Access the FIRPTA database and select "New Form 8288-A" to begin entering Form 8288-A. A "blank" screen ready for input will appear. After the record is input, click the "Save" button. A New Form 8288-A Record Added screen will appear.

  3. Every Form 8288-A record that is input to the FIRPTA Database will be assigned an Input Date Record #. This is confirmation that the record has been saved. The confirmation number will appear in the following format, YYYY-MM-DD-NNNN .

    • "YYYY" is the year of entry

    • "MM" is the month of entry

    • "DD" is the day of the month entered

    • "NNNN" is the ascending sequence number assigned for the specific date of entry.

      Example:

      The first Form 8288-A record saved on January 3, 2014, will be assigned input date record # 2014-01-03-0001. If only 137 Form 8288-A records are entered and saved on January 3, 2014, then the last saved record will be assigned input date record # 2014-01-03-0137.

  4. To add another Form 8288-A record with the same buyer information, select the New with Repeat button. To enter a different Form 8288- A, select the Next New button. The computer will automatically enter the current date, and your login information in the "Remarks" area of the screen.

3.21.25.13.2.1  (01-01-2014)
Correcting/Updating existing Form 8288-A records (Multiple sellers)

  1. At times Form 8288 may be filed with one Form 8288-A listing one seller rather than multiple sellers. Subsequently, the buyer/seller or their agent contacts the IRS and states that the property was owned by multiple sellers. Instruct the buyer/seller to mail in corrected Form 8288-As along with the original Form 8288-As and a cover letter explaining the situation.

  2. An Amended/Corrected Form 8288 is not required.

  3. The buyer/seller or their agent must provide us with originally sent Form 8288-A Copy B, the name, address and TIN of the other multiple sellers.

  4. Research to make sure the T/P has not filed an income tax return (e.g. 1120-F, 1040-NR) to claim the money.

    1. Update the original Form 8288-A record on file to reflect the correct money amount divided evenly (or by designated percentage if documented in the letter) amongst the other sellers.

    2. Create a new Form 8288-A record for the other sellers not previously documented in the Database.

    3. If not provided, create a new Form 8288-A Copy B statement for the other sellers for mailing.

    4. Photocopy a set of the new Form 8288-As and attach it to the taxpayers correspondence.

    5. Stamp "Copy B mailed" on the newly prepared Form 8288-As and mail them out to the sellers with IDRS or Database letter 3296.

      Note:

      If an alternate mailing address appears on Form 8288-A, below box 6, then mail Form 8288-A Copy B to the foreigner at the mailing address listed in the box. Also, document the alternate mailing address in the "Remarks" area of the 8288-A database.

    6. Associate the taxpayers correspondence along with the new sets of Form 8288-As to the original Form 8288 return.

3.21.25.13.2.2  (01-01-2014)
Deleting/Correcting/Updating existing Form 8288-A records (Multiple Sellers to One Seller)

  1. At times a USRPI may be owned by one spouse (deed in their name) but the buyer submits Form 8288-A Copy A and B dividing the amounts in half. Subsequently, the seller contacts the IRS and states that the property was owned by the one spouse. Instruct the seller to mail back both Form 8288-As (both spouses) along with a cover letter explaining the situation.

  2. An Amended/Corrected Form 8288 is not required.

  3. Code and Edit will first research to make sure the T/P has not filed an income tax return to claim the money, then:

    1. Edit the original Form 8288-A record for the one spouse to reflect the correct (full) money amount designated to the one spouse.

    2. Update the one spouse Form 8288-A record with the correct amounts in the Database and explain it in the remarks area.

    3. If not provided, create a new Form 8288-A Copy B statement for the one seller for mailing.

    4. Delete the secondary spouse Form 8288-A record.

    5. Stamp "Copy B mailed" on the newly prepared Form 8288-A and mail it out to the one seller with IDRS or Database letter 3296.

      Note:

      If an alternate mailing address appears on Form 8288-A, below box 6, then mail Form 8288-A Copy B to the foreigner at the mailing address listed in the box. Also, document the alternate mailing address in the "Remarks" area of the 8288-A database.

    6. Associate the taxpayers correspondence along with the new sets of Form 8288-As to the original Form 8288 return.

3.21.25.13.3  (01-01-2014)
Editing Form 8288-A for Mailout

  1. Take the following steps when more than one seller (person subject to withholding) is listed on Form 8288-A:

    1. Photocopy (sets) Form 8288-A for each additional taxpayer. If a husband and wife are listed on Form 8288-A, then make sure you have 4 copies (2 sets of Copy A and B) of Form 8288-A for each spouse.

    2. Edit each set of Form 8288-A with one foreign persons name by "lining through in red ink" the other foreign persons name, incorrect amount of federal income tax withheld (FITW), and the amount realized. If not present, edit the correct name and amounts above or to the left of the lined through entry. See IRM 3.21.25.8 (4).

    3. Divide the Federal Income Tax Withheld (FITW) amount by the number of sellers listed on Form 8288-A (e.g., Husband and Wife FITW is $50,000 ÷ 2 = $25,000), and write the result in Box 2 of the Copy A and B of Form 8288-A.

    4. Divide the Amount Realized by the number of sellers listed on Form 8288-A (e.g. Husband and Wife FITW is $500,000 ÷2 = $250,000), and write the result in Box 3 of the Copy A and B of Form 8288-A.

      Caution:

      Always record the "Amount Realized" in the INTLWebApps 8288-A record screen when entries are present on both Lines 3 and 4 of the 8288-A. Record the "Gain Recognized by Foreign Corporation." in the "Gain Recognized by Foreign Corporation" field.

  2. Repeat Steps 3 and 4 above for each additional seller listed, but cross out the second or additional name and ITIN so that you can have 2 sets.

  3. No special editing is required if Form 8288-A lists only one foreign person or entity in the "Name of person subject to withholding" block.

    Note:

    If 50 or more Form 8288-As are attached to Form 8288, detach Form 8288-A Copy "B." and release batch on BBTS to the next function so as to not delay batch processing cycle. Continue to input Form 8288-A, Copy "B" to the INTLWebApps Database. Once all Form 8288-As, Copy B have been recorded, stamped "Copy B mailed" on Form 8288-A Copy "B" , mail it out with Letter 3296.

  4. If the DOT is missing, edit the DOT from Line 3, Part I or Part II of Form 8288 to Line 1 of Form 8288-A. If a withholding certificate is attached, make sure the date of the withholding certificate is also edited to Form 8288-A Line 1 as the DOT, and entered into the database. See Exhibit 3.21.25-2.

  5. If Form 8288 and Form 8288-A show different dates of transfers, then line through the DOT on Form 8288-A and edit the DOT from Form 8288 to Line 1 (above it) of Form 8288-A.

  6. If the seller's country code block on Form 8288-A is blank, then edit the country code in the block.

3.21.25.13.4  (01-01-2014)
Entering Form 8288-A to the INTLWebApps Database

  1. The Form 8288-A screen is divided into three sections. They are:

    • Form 8288 Information

    • Form 8288-A Information

    • Credit Verification

    Note:

    If Form 8288-A is already present in the Database (an exact record), then prepare a "Purple Barney" to send the duplicate Form 8288-A to files for association with the original DLN.

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

3.21.25.13.4.1  (01-01-2014)
Form 8288-A (IRMF) Screen Section - Form 8288 Information

  1. DLN: This is a 14 position field that must be entered. The DLN must begin with 60140 (BMF OSPC) or 17641 (NMF CSPC or Non-Filer). The valid characters are numeric 0-9.

    Caution:

    Form 8288 NON-FILER: See IRM 3.21.25.13.4 (2), IRM 3.21.25.14.2 .

  2. Date of Transfer (DOT): This field must be present. Enter the date in MMDDYYYY format from Line 1 Form 8288-A. See IRM 3.21.261.15.8 (9) for additional instructions.

  3. Total Tax Paid: This checkbox may or may not be depressed. Depress the checkbox if the tax is paid with the return.

    Note:

    A "green rocker or check mark" will appear (See IRM 3.8.45.6.32 (2)) next to Form 8288, Part I Line 7, or Part II Line 6 to indicate that a payment has been received.

    Reminder:

    Research IDRS for posting of the payment if no green rocker or check mark appears next to Part I Line 7, or Part II line 6. If payment is located in IDRS, then depress the "Tax Paid" button.

    Exception:

    See IRM 3.21.25.14.2.

  4. Total Amount Realized: This is a 16 position money field that may or may not be present. The valid characters are numeric 0-9. Enter the amount realized from Line 5, Part I, or Line 5a or 5b Part II of the Form 8288.

    Note:

    If a January 2004 revision date of Form 8288 is used, and Part II is completed, then do enter an amount in this field, for there is no amount to enter.

  5. W/H Agent Tin Type: This checkbox must be depressed. It is initially defaulted with the SSN checkbox depressed. If the withholding agent has an EIN then depress the EIN checkbox.

  6. W/H Agent TIN: This is a 9 position field that must be present. The valid characters are numeric 0-9. Enter the TIN appearing at the end of Line 1.

  7. W/H Agent Name: This is a 35 position field that must be present. The valid characters are alpha (a-z) and numeric (0-9). Enter the name appearing on Line 1.

  8. Real Property Description (RPD): This is a 70 position field that must be present. The valid characters are alpha (a-z) and numeric (0-9). Enter the property description (in abbreviated format if necessary) that appears in Box 5 (Form 8288-A) or Line 2 (Form 8288). Preferably in street address format, if available.

    Example:

    A street address format appears as "1234 Rosebud Avenue" : A property description can be:
    Vacant land
    10% Interest in Partnership - enter "10 percent interest in partnership"
    Lot 232
    time share week 18-20

    Note:

    The following characters are not to be used when entering the "Real Property Description" : pound (#), comma (,), percent (%), ampersand (&), at (@), period (.). Please refer to the attached table for correct abbreviations. Do not deviate from these instructions. Also note that this field will be used to cross reference the 8288-B Database for exact matches to the data reflected in the "Real Property Description" field.

    Word Abbreviation   Word Abbreviation
    Air Force Base AFB   Northeast or NE NE
    Apartment APT   Northwest or NW NW
    Avenue AVE   One-fourth One-quarter 1/4th
    Boulevard BLVD   Northwest or NW NW
    Building BLDG   Parkway PKY
    Circle CIR   Place PL
    Court CT   Post Office Box, or PO Box PO BOX
    Drive DR   Road RD
    East E   RD, Rural Delivery, RFD, RR, Rural Route RR
    Fort FT   South S
    General Delivery GEN DEL   Southeast SE
    Heights HTS   Southwest SW
    Highway HWY   Square SQ
    Island IS   Street ST
    Junction JCT   Suite STE
    Lane LN   Terrace TER
    Lodge LDG   West W

  9. RPD State Code: This is a 2 position field that must be present. The valid characters are alpha (a-z). Enter the state code of the property description from Line 2, of Form 8288.

    Note:

    If the RPD State Code is not present on any of the attached documents, then enter "XX " in the RPD State Code field.

3.21.25.13.4.2  (01-01-2014)
Form 8288-A (IRMF) Screen Section - Form 8288-A Information

  1. Type of Person: This checkbox must be depressed. It is initially defaulted with the "Individual" checkbox depressed. If the type of person is a business entity, then depress the "Corporation" checkbox.

  2. Foreign Seller TIN: This is a 9 position field that may or may not be present. The valid characters are numeric 0-9. It can be an SSN/ITIN (xxx-xx-xxxx) or EIN (xx-xxxxxxx). There is no need to type in the hyphens, because the "type of person" button will auto-enter them once you proceed to the next field. The foreign persons identifying number (TIN) can be found to the left of Box 3, on Form 8288-A. See IRM 3.21.25.13 (3)

    Caution:

    If the TIN is a Canadian Social Insurance Number (XXX-XXX-XXX) do not enter it in the Database, instead treat this as if no TIN is present and enter "≡ ≡ ≡ ≡ ≡ ≡ " .

    Reminder:

    Do not forget to send out IDRS Letter 3794C or FIRPTA Quick Note Letter 3794 SC/CG, to the foreign seller asking to fill out Form W-7 and provide us with an ITIN number.

  3. Copy B Mailed Date: This field may or may not be present. Enter the date stamped on Form 8288-A, Copy B in MMDDYYYY format. Mail the stamped Form 8288-A, Copy B to the foreign seller with IDRS Letter 3296C, or FIRPTA Quick Note Letter 3296 SC/CG.

    Note:

    If a mailing address appears on Form 8288-A, below box 6, then mail the Form 8288-A Copy B to the foreigner at the mailing address listed in the box and document it in the remarks area.

    Reminder:

    Leave this field blank, and DO NOT mail out Form 8288-A, Copy B when the Foreign Seller TIN field is blank.

  4. Corp/Foreign Seller Last Name: This is a 30 position field that must be present. The valid characters are alpha (a-z) or numeric (0-9). Enter the last name of the foreign seller (also known as (a.k.a.) seller) or, the Corporate name, as it appears on Form 8288-A. The Corp/Foreign Seller Last Name can be found to the left of Box 5, on Form 8288-A.

    Note:

    When the Corporation "Type of Person" checkbox is depressed, then this will be the only name field enabled for entry.

  5. Foreign Seller First Name: This is a 30 position field that must be present when the Individual "Type of Person" checkbox is depressed. The valid characters are alpha (a-z). Enter the first name of the foreign seller as it appears on Form 8288-A. The Foreign Seller First Name can be found to the left of Box 5, on Form 8288-A.

    Note:

    This field can only be entered when the Individual Type of Person checkbox is depressed, and only one name can be input per each Form 8288-A. Otherwise, this field will be disabled.

  6. Address Ln. 1: This is a 40 position field that must be present. The valid characters are alpha (a-z) or numeric (0-9). The address line can be found to the left of Box 5 and 6, on Form 8288-A. The first address field can be for either the "in care of addressee" or the regular mailing address of the foreign person. See table in third bullet of paragraph (4) in IRM 3.21.25.10.

  7. Address Ln. 2 / Province: This is a 40 position field that may or may not be present. The valid characters are alpha (a-z) or numeric (0-9). The address line can be found to the left of Box 5 and 6, on Form 8288-A. This address line can be used to document the foreign city, province and postal code of foreign addresses. See table in third bullet of paragraph (4) in IRM 3.21.25.10.

  8. City: This is a 15 position field that may or may not be present. The valid Characters are alpha (a-z). The City name can be found to the left of Box 5 and 6, on Form 8288-A. Enter the appropriate City name for Domestic addresses. However, if the address is a foreign address, then enter the Country name here. See table in third bullet of paragraph (4) in IRM 3.21.25.10.

  9. State Code: This is a 2 position field that may or may not be present. The valid Characters are alpha (a-z). The State name can be found to the left of Box 5 and 6, on Form 8288-A. Enter the appropriate 2 digit state code. See Document 7475 for the State Code Chart. However, if the address is a foreign address leave this field blank.

  10. Zip Code: This is a 9 position field that may or may not be present. The valid Characters are numeric (0-9). The Zip code can be found to the left of Box 5 and 6, on Form 8288-A. Enter the appropriate zip code. See Document 7475 for the Zip Code Chart. However, if the address is a foreign address leave this field blank.

  11. Country Code: This is a 2 position field that may or may not be present. The valid Characters are alpha (a-z). The Country name can be found to the left of Box 5 and 6, on Form 8288-A. Enter the appropriate 2 digit country code, or do CTRL L for a drop down list of countries to use to select your entry. See Document 7475, Section 6.

  12. Amount Realized: This is a 16 position field, which must be present. The valid characters are numeric (0-9). The amount realized can be found on Line 3, of Form 8288-A. The entry in this field may differ from the entry placed in the Amount Realized field at the top of the 8288-A record because of multiple sellers.

    Note:

    If an entry appears on Line 4 (IRM 3.21.25.13.4.2 (14)) and not Line 3, then leave this field blank. However, if an entry appears on both Line 3 and 4, enter the amount from Line 3 in this field.

    Reminder:

    When more than one foreign seller is listed on the Form 8288-A, the amount realized is to be evenly divided amongst the total number of foreign sellers listed, or as designated (perhaps by a percentage amount) by the foreign seller. See IRM 3.21.25.13.3 (1).

  13. Amount Withheld: This is a 16 position field, which must be present. The valid characters are numeric (0-9). The amount withheld can be found on Line 2, of Form 8288-A. If one foreign seller is listed, then enter the entire amount withheld. If more than one foreign seller is listed, then enter the edited amount withheld.

    Reminder:

    When more than one foreign seller is listed on the Form 8288-A, the amount withheld is to be evenly divided amongst the total number of foreign sellers listed, or as designated (perhaps by a percentage amount) by the foreign seller. See IRM 3.21.25.13.3 (1).

  14. Gain Recognized by Foreign Corp: This is a 16 position field, which may or may not be present. The valid characters are numeric (0-9). The gain recognized by foreign corp. can be found on Line 4, of Form 8288-A. Enter the amount reflected on Form 8288-A, line 4. If an entry appears on both lines 3 and 4 of the 8288-A, enter the amount from Line 4 in the "Gain Recognized by Foreign Corporation" field. However, if an error message appears because an entry is present in the amount realized field, then skip this field and document the amount in the remarks area.

  15. Remarks: Enter any specific remarks you feel are appropriate. Once you "SAVE" the record the computer will systemically enter the date and profile number of the tax examiner entering the record to the Database. See IRM 3.21.25.14.2.

    Note:

    This information is crucial for leaving an audit trail.

3.21.25.13.4.3  (01-01-2014)
Form 8288-A (IRMF) Screen Section - Credit Verification

  1. DO NOT COMPLETE THIS SECTION ON INITIAL PROCESSING OF FORM 8288 and Form 8288-A.

    Reminder:

    This section is only to be completed when an income tax return (e.g. Form 1040-NR) is received, and Form 8288-A or other supporting documentation (e.g. settlement statement) is attached. The Form 8288-A (FIRPTA) withholding credit must be credit verified against the Form 8288-A (IRMF) Database, and an "International Credit Verification Slip" (Form 13698) prepared. Once the credit has been verified, document the Tax Period, Tax Form #, and Amount Verified information in the following fields. If the credit cannot be verified, then complete and attach Form 13698 to the income tax return and write ".00" as the amount verified on Form 13698.

  2. In order to update and/or modify an existing Form 8828-A you must:

    1. Login to the INTLWebApps Application to access the FIRPTA Database.

    2. Select "Search/Edit" to begin a Form 8828-A query.

    3. Enter at least two types of information into the fields to narrow down your search.

    4. Selecting "More Search Options" will display extra fields.

    5. Using the wildcard sign "%" before and after your information may help your query.

    6. Scroll through the responses until you find the correct record.

    7. Locate the fields that need to be updated/modified:.

      1.Tax Period: This field must be present when verifying the credit. The valid characters are numeric (0-9). Enter the tax period in YYYYMM format.

      2.Tax Form #: This is an 8 position field that must be present when verifying the credit. The valid characters are alpha (a-z) and numeric (0-9). Enter the tax form number of the income tax return you are verifying the Form 8288-A FIRPTA credit.

      3.Amount Verified: This is a 16 position field that must be present when verifying the FIRPTA credit. The valid characters are numeric (0-9). The amount withheld can be found on Line 2, of Form 8288-A, and in this Database. Once you have located the Form 8288-A in the Database, then complete the three fields: Tax Period, Form Number, and Amount Verified. Lastly, save the record.

      Reminder:

      Do not forget to complete Form 13698 or update the foreign persons TIN in the database.

    8. Use the keyboard delete or backspace key to remove the entry, and

      Note:

      You can also highlight the field and then type in the correct information.

    9. Type in the correct information.

    10. Lastly, depress the "Save" button.

3.21.25.13.4.3.1  (01-01-2014)
Researching Form 8288-A in the FIRPTA Database

  1. In order to research and query Form 8288-A you must:

    1. Login to the INTLWebApps Application to access the FIRPTA Database.

    2. Select "Search/Edit" to begin a Form 8288-A query.

    3. Enter at least two types of information into the fields to narrow down your search.

    4. Selecting "More Search Options" will display extra fields.

    5. Using the wildcard sign "%" before and after your information may help your query.

    6. Scroll through the responses until you find the correct record.

3.21.25.13.5  (01-01-2014)
Mailing Out Form 8288-A to the Foreign Seller

  1. Ensure the foreign person's TIN is present. If the foreign person’s TIN is not present on form 8288-A DO NOT stamp or mail Copy B to the foreign person.

  2. To prevent disclosure of Personally Identifiable Information (PII), the Withholding Agent's SSN must be redacted prior to mailing. No redaction of EIN is required.

  3. Use IDRS letter 3296C or Quick Note letter 3296 (SC/CG) to mail Copy B of form 8288-A to the foreign person.

  4. If an Alternate mailing address appears on Form 8288-A, below box 6, mail form 8288-A Copy B to the foreign person at the mailing address listed in the box. Record the alternate mailing address in the "Remarks" section of the 8288-A entry screen.

  5. If the foreign person responds to letter 3794C or 3794 SC/SG and provides their TIN:

    1. Purge the Form 8288-A Copy B from the pending wall.

    2. Edit the TIN in the TIN box (located to the left of box 3).

    3. Query the Form 8288-A INTLWebApps Database for the Form 8288-A record and update the record with the foreign person's TIN. See IRM 3.21.25.13.3 for additional mailing procedures.

    Note:

    If Form 8288-A Copy B is not on the pending wall, create a dummy form 8288-A Copy B from the 8288-A IRMF Database record to mail to the foreign person. DO NOT include the Withholding Agent's SSN to prevent disclosure of PII.

3.21.25.14  (01-01-2014)
Credit Verifying Form 8288-A (FIRPTA) Credits

  1. Any foreign individual or entity that has sold a U.S. Real Property Interest (USRPI) is required to file a U.S. income tax return to claim the credit or refund of the FIRPTA tax withheld. The return can be a Form 1040, Form 1040-NR (Individual or Estate or Trust), Form 1120-F, Form 990-T, or Form 8804.

    Note:

    Generally, a Form 8288-A must be attached to the income tax return to substantiate the claimed FIRPTA credit. However, a foreign person may or may not have a stamped copy of Form 8288-A Copy B attached to their income tax return. In a case like this, the foreign person must attach to their U.S. income tax return substantial evidence of withholding (e.g. settlement statement (like a HUD-1 form)) that contains all of the following information for both the buyer and the seller.

    Substantial Evidence of Withholding
    1 Foreign Person Name.
    2 The buyer’s name, address, and TIN.
    3 A description and location of the property.
    4 The date of the transfer.
    5 The amount realized on the transfer.
    5 The amount of tax withheld.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.21.25.14.2 for specific instructions related to processing credit verifications on Non-Filer cases.

  2. FIRPTA credit verifications identified in Code and Edit are to be verified within 48 hours of receipt. FIRPTA credit verifications received from another function (Rejects, Error Resolution (ERS), Accounts Management, etc.) must also be verified within 48 hours and returned to the originator on Form 3210. Document the credit verification amount on Form 13698, and update the Form 8288-A Database "Credit Verification" section of the Form 8288-A screen with the "Form #," "Tax Period," and "Money amount" when the tax paid button is depressed.

    Note:

    Austin Submission Processing Center (AUSPC) will use 34-710-11330 to report hours and volume when processing Form 8288-A credit verifications. OSPC will use 34-210-11331 to report hours and volumes when processing Form 8288-A credit verifications.

  3. Never verify more FIRPTA credit than what appears in the Form 8288-A Database. If the taxpayer claims less credit on the return, then verify only up to the amount claimed.

    Example:

    Never allow a husband or a wife to claim the full amount of the FIRPTA credit on their own income tax return. Each spouse must file their own U.S. income tax return to claim their half of the FIRPTA credit, and they must both have a TIN number.

  4. Verification Procedures: Generally, you must:

    1. Make sure you have a Form 8288-A attached to the income tax return or substantial evidence of withholding (e.g. settlement statement) and that the return has a TIN number present on it.

    2. Form 8288-A may or may not have "Copy B mailed" stamped on it, or the DLN of the processed Form 8288 stamped on it. Nevertheless, continue to verify the credit.

      Reminder:

      If the appropriate FIRPTA date stamp is not on the Form 8288-A, then it is a good possibility that it is not recorded in the Database. However, proceed with the credit verification.

    3. Query the FIRPTA Database for the credit.

      Note:

      If you are unable to locate the Form 8288-A record in the Database, research the W/H Agent TIN on IDRS to see if Form 8288 was filed and paid. If found on IDRS then continue following these instructions. If not, then go to IRM 3.21.25.14.2 for instructions.

      IF, THEN,
      The income tax return and the Form 8288-A have No TIN number Do not verify the credit but enter .00 on Form 13698. Document in the remarks area of Form 13698 the following "Denied Credit - No TIN present"
      The income tax return has a TIN number, but not Form 8288-A,
      • Query for the Form 8288-A record in the Database to see if the name and address match the taxpayers Form 1040-NR name and address. If it does, then verify credit and update Database with the correct TIN number.

      • Name and address on 1040-NR are different, do not verify the credit but enter .00 on Form 13698. Document in the remarks area of Form 13698 the following; "Denied Credit - Questionable Taxpayer"

      The TIN on the tax return and Form 8288-A are not the same, and/or the name and address do not match the Form 8288-A Database, Do not verify the credit but enter .00 on Form 13698, and document on Form 13698 "possible mixed entity case." "Denied Credit - Questionable Taxpayer "
      The income tax return has no TIN, or it is a Canadian TIN, Do not verify the credit but enter .00 on Form 13698. "Denied Credit - No Valid U.S. TIN present "
      The "Tax Paid" button is not depressed on the Form 8288-A screen, and the date of transfer is prior to 12/13/05 with a 98641 or 17641 DLN with a 3XX blocking series, The tax has been paid. Verify the credit.
      The "Tax Paid" button is not depressed on the Form 8288-A screen, and the date of transfer is after 12/12/05, with a 98140, 17641 or 60140 DLN, The tax may or may not have been paid.
      1. Research IDRS MFT 17 using the W/H Agent EIN and the year and month of the date of transfer as your tax period to see if the tax was paid.

      2. If paid, depress the "Tax Paid" button,

      3. Verify the credit and prepare Form 13698.


      If the tax hasn't been paid, then follow the instructions in the next row.
      Form 8288 tax has not been paid, or

      Form 8288 tax has been partially paid,
      1. Prepare Form 13698.

      2. Verify the credit, but do not depress the Tax Paid Button.

      3. Enter the credit verification information only in the "Remarks" area.

      The Form 8288 tax has been paid, and the tax return and Form 8288-A have matching U.S. TINs, Verify the credit, complete Form 13698, Update the credit verification table in the Form 8288-A Database, and insert the current date and employee profile number in the remarks area of the Database.

    4. Follow the instructions in the "If/Then" table below, when the Form 8288-A record is not located in the database, but the Form 8288 return was received, paid and processed to the Business Master File.

      Note:

      The 48 hour turnaround time is waived in this situation.

      If... Then...
      Only one Form 8288-A was filed with the Form 8288 return
      1. Create an Form 8288-A record in the "Form 8288-A IRMF" database.

      2. Save the Record.

      3. Complete the "Credit Verification" portion of the Form 8288-A record.

      4. Stamp "Copy B mailed" on the Form 8288-A.

      5. Complete the Credit Verification Slip (Form 13698).

      More than one Form 8288-A was filed with the Form 8288 return
      1. Alert the Lead Tax Examiner.

      2. The Lead will request (via Form 2275) the entire Form 8288 DLN return block from files.

      3. Once the DLN block has been received from files the Lead will locate the questionable return in the block and give it to the C and E T/E to complete their actions (See IRM 3.21.25.13.3). Once the actions are completed the T/E must return the document to the DLN block.

      4. The Lead will review the remaining Form 8288 returns in the block to see if the Form 8288-As have been recorded in the Form 8288-A IRMF database.

      The Form 8288-As from the DLN block were not recorded in the Form 8288-A IRMF database The Lead will either record them in the Form 8288-A IRMF database, or designate a T/E within the unit to process the DLN block (See IRM 3.21.25.13.4). Caution: Do not separate the DLN block. Reminder: Once all actions with the DLN Block has been completed (including Form 8288-A Copy B Mailout), return the entire DLN block to files for Re-filing.
      The Lead is unable to obtain the DLN block from files Lead must prepare correspondence action sheet 3104C and request copies of all the Form 8288-As from the withholding agent (use open paragraph). Suspend for 30 days in the "3794C No TIN folder."

      Note:

      If buyer has foreign address, suspend for 60 days.

      Withholding Agent responds Complete the actions mentioned in the first row above.
      Withholding Agent doesn’t respond Follow IRM instructions. See "NOTE" in IRM 3.21.25.14. .

  5. After all action has been taken, complete the credit verification slip, Form 13698 and staple it to the front of the income tax return. The following information must be entered on Form 13698:

    • Tax Period – YYYYMM

    • TIN – ITIN, SSN, EIN

    • Master File Tax (MFT) – 02, 08, 20, 30, 34

    • Amount of credit

    • Verifiers IDRS profile number

    • Total credit amount

    Note:

    Also complete the "Credit Verification" section on the bottom of the Form 8288-A Query screen or the Form 8288-A IRMF query screen.

  6. The w/h agent information on the paper Form 8288-A may differ from the Database, because the Database shows the Form 8288 buyer information, whereas the Form 8288-A may show the title company information. Either way it appears is correct. Continue to verify the credit.

3.21.25.14.1  (01-01-2014)
Verifying Form 8288-A Credit on 1999 and Prior Income Tax Returns

  1. The FIRPTA Database cannot be used to verify Form 8288-A credits on 1999 or prior income tax returns.

  2. In order to verify the Form 8288-A credit for a 1999 or prior income tax return, you must:

    1. Research IDRS Command Codes NAMES or NAMEE to see if the taxpayer may have filed a previous income tax return claiming the credit, but using a different TIN number. If another TIN is found and IDRS shows the taxpayer received credit for the FIRPTA withholding, then stop here and disallow the credit on Form 13698 (document the posting of the credit found on IDRS).

    2. If no other TIN is located continue to verify the credit by researching the NMF system and/or request a MARS transcript. Form 8288 is processed with MFT 17 in the NMF system. The DLN of the Form 8288 begins with 98641 or 17641. Once you have accessed the NMF account; Query for the Form 8288 account using the withholding agent name, withholding agent TIN, MFT 17, and/or the Date of Transfer in the tax period field. Once the Form 8288 has been located, follow the instructions in the table found in IRM 3.21.25.14 (3) 3).

      Reminder:

      Follow the instructions in IRM 3.21.25.14.2 if no Form 8288 is found in the NMF system.

  3. Once all credit verification action has been taken and Form 13698 has been completed, staple Form 13698 to the front of the income tax return, and return it to the originator.

3.21.25.14.2  (01-01-2014)
Verifying FIRPTA Credit via Settlement Statement -- Buyer Non-Filer Account

  1. In general, a copy of Form 8288-A stamped by the IRS must be attached to the seller's return to establish the amount withheld under IRC § 1445(a) which is available as a credit. In situations where the tax has been withheld but the buyer (purchaser) does not pay over the amount withheld to the IRS, the seller will not receive a stamped copy of Form 8288-A, Copy B from the IRS. Nonetheless, the seller can establish the amount of tax withheld by the buyer by attaching to its tax return substantial evidence (e.g., closing documents, settlement statement) of the amount of tax withheld. See Exhibit 3.21.25-4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Non-Filer or Non-Payment).

  2. The foreign seller must provide the IRS with one of the following items:

    1. A signed or initialed settlement statement/closing agreement (See Exhibit 3.21.25-4), or

    2. Form 8288-A, Copy B (stamped or not stamped by the IRS)


    A good faith estimate settlement statement is invalid proof for FIRPTA credit verification purposes.

  3. Use the instructions in this subsection to verify (allow) the FIRPTA credit in situations where the buyer (withholding agent) has not filed Form 8288 or paid the FIRPTA tax. These instructions supersede some of the instructions found in IRM 3.21.25.14.

  4. Research the INTLWebApps database for the FIRPTA credit when a Form 8288-A or settlement statement is attached to the income tax return, and the income tax return has the foreign persons Name, Address, and Taxpayer Identifying Number (TIN) on it.

    Note:

    If the Name, Address and TIN is not on the income tax return, deny the credit.

  5. If the 8288-A record is found in the database, and the tax paid button is depressed, research IDRS to make sure the tax is truly paid. If paid, prepare Form 13698 and update the credit verification field in the INTLWebApps database. However, if it is not paid, un-depress the "Tax Paid" button and prepare Form 13698 (see Exhibit 3.21.25-3) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Do not update the credit verification field. Instead write in the remarks area "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "

    Note:

    Always make sure the seller TIN is in database. If it is not present, then update the 8288-A record.

  6. If the 8288-A record is found in the database, but the Tax Paid button is not depressed in the database, research IDRS to verify if a return has actually been filed. If IDRS shows a filing but no tax payment on IDRS, then prepare Form 13698 (see Exhibit 3.21.25-3) to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Do not update the credit verification field, instead write in the remarks area "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "

    Note:

    Always make sure the seller TIN is in database. If it is not present, then update the 8288-A record.

  7. If the 8288-A record is not found in the database, research IDRS to find the buyer TIN (if not present on the paperwork). If you locate the buyer TIN, look on IDRS to see if the buyer filed the 8288. If the 8288 account is found on IDRS and it is paid:

    1. Create an 8288-A record in the INTLWebApps database from the information on IDRS or the submitted documentation.

    2. Prepare Form 13698 to allow the credit.

    3. Depress the "Tax Paid" button.

    4. Simultaneously, update the credit verification field in the INTLWebApps database.

  8. If the 8288-A record is not found in the database, research IDRS to find the buyer TIN (if not present on the paperwork). If you locate the buyer TIN, look on IDRS to see if the buyer filed the 8288. If the 8288 account is found on IDRS and it is NOT paid:

    1. Create an 8288-A record in the INTLWebApps database from the information on IDRS or the submitted documentation.

    2. Prepare Form 13698 to allow the credit. See Exhibit 3.21.25-3.

    3. Do NOT depress the "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. Write in the remarks area "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "

    5. Do not update ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  9. If the 8288 or 8288-A record is not found on IDRS or in the database, then we have a true Non-Filer case. Perform the following steps:

    1. Refer to IRM 3.21.25.14.2 (2) to create an 8288-A record using the information from the taxpayer.

      Form 8288 and Form 8288-A Non-Filer Record
      DLN: Create specific Non-Filer 8288-A DLN record. The DLN must always be ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but the List year will vary. The list year will be the year of the DOT.

      Example:

      Date of Transfer (DOT) on settlement statement is 02/22/2012, then the list year will be "2" and the DLN to create the 8288-A record will be ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

      Date of Transfer: Always enter the Date of Transfer in mm/dd/yyyy format.
      Total Tax Paid:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "Total Tax Paid" button.
      Total Amount Realized: Always enter ten ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      W/H Agent TIN Type: Depress the "EIN" button.
      W/H Agent TIN: Always enter ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      W/H Agent Name: Always enter "FIRPTA NON FILER CASES."
      Real Property Description (RPD): Always enter "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "
      RPD State Code: Always enter "DC."
      Amount Realized: Enter the "Contract Sales Price" found on the settlement statement (see Exhibit 3.21.25-4) or Form 8288-A (if attached).

      Note:

      If multiple sellers are listed, equally divide the amount between the sellers.

      Amount Withheld: Enter the "FIRPTA Tax withheld" listed on the settlement statement (see Exhibit 3.21.25-4) or Form 8288-A (if attached). The settlement statement (Item 500-509) may document the w/h FIRPTA tax as "IRS, FIRPTA, or United States Treasury."

      Note:

      If multiple sellers are listed, equally divide the amount between the sellers.

      Remarks: Always enter "CREDIT VERIFIED – COPY SENT TO COMPLIANCE REVENUE OFFICER – FOR 6020(B)"

    2. Do not≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Prepare Form 13698 to allow the credit. Write "Non-Filer / Settlement statement sent to Compliance for 6020(b) action." in the comments block. See Exhibit 3.21.25-3.

    4. Photocopy the 8288-A or settlement statement and transship the copied documents to the Philadelphia Compliance Campus on Form 3499, Informational Transmittal, Attn: Gregory Dausuel, 2970 Market Street, 4th Floor, 4-E04.153, Philadelphia, PA 19104.

    5. Staple Form 13698 to the income tax return and continue processing the return through the pipeline.

3.21.25.15  (01-01-2014)
Form 8805 Credit Verification of Pre-IRMF Section 1446 Credits Claimed on Form 1040-NR, Form 8804, Form 990-T, Form 1120-F, and Form 1040-NR Estate or Trust

  1. When it is necessary to verify credits claimed on Form 1040-NR, Form 8804, Form 990-T, Form 1040-NR Estate or Trust, and Form 1120-F under IRC § 1446, the following steps should be taken:

    1. Login to the INTLWebApps Application to access the Project 1446 Database.

    2. Select "Search/Edit" to begin a Form 8805 query.

    3. Enter at least two types of information into the fields to narrow down your search.

    4. Selecting "More Search Options" will display extra fields.

    5. Using the wildcard sign "%" before and after your information may help your query.

    6. Scroll through the responses until you find the correct record.

    Note:

    These credit verifications will be coming from ERS, Rejects and from walkthroughs.

  2. Upon verification the information must be annotated on the credit verification slip. The following information must be entered:

    • Current Date followed by the TE Profile Number

    • Tax Year - YYYYMM format

    • EIN - SSN

    • Indicate from which Database the credit was verified

    • Amount and date of credit

  3. If there is a discrepancy between the credits being claimed on the return and the Database information, return to originator.

  4. Inform the originator that correspondence is needed with the PARTNERSHIP/WITHHOLDING AGENT.

  5. If after research is completed and credits cannot be verified, return the income tax return to the originator, annotated with the following: "THERE ARE NO CREDITS AVAILABLE, " TE Profile Number and current date.

3.21.25.15.1  (01-01-2014)
Verifying 8805 Credits on 1999 and Prior Income Tax Returns

  1. The Project 1446 Database cannot be used to verify Form 8805 credits on 1999 or prior income tax returns.

  2. In order to verify the Form 8805 credit for a 1999 or prior income tax return, you must:

    1. Research IDRS Command Codes NAMES or NAMEE to see if the taxpayer may have filed a previous income tax return claiming the credit, but using a different TIN number. If another TIN is found and IDRS shows the taxpayer received credit for the IRC § 1446 withholding, then stop here and disallow the credit on Form 13698 (document the posting of the credit found on IDRS).

    2. If no other TIN is located continue to verify the credit by researching the NMF system and/or request a MARS transcript. Form 8804 is processed with MFT 08 in the NMF system. The DLN of Form 8804 begins with 98629 or 17629. Once you have accessed the NMF account; Query for the Form 8804 account using the withholding agent name, withholding agent EIN, MFT 08, and tax period. Once the Form 8804 has been located, you must verify that the tax has been paid. If the tax was partially paid, then verify only up to the paid tax amount but not more than the amount of the credit being claimed by the taxpayer on Form 13698. Otherwise if not paid at all, stop here and disallow the credit on Form 13698.

  3. Once all credit verification action has been taken and Form 13698 has been completed, staple Form 13698 to the front of the income tax return.

3.21.25.16  (01-01-2014)
Processing Form 8805 to the new IRMF Form 8805 Database beginning with Tax Period 12/31/2004

  1. Form 8805 data is transmitted to the Martinsburg Computing Center (MCC) for posting to the information Returns master File (IRMF).

  2. Forms 8805 submitted with Forms 8804 are detached from Form 8804, batched, numbered (60546 DLN), and forwarded to the FIRPTA unit at the OSPC for processing to the INTLWebApps Database.

    Reminder:

    Form 8805 comes in sets. Copy A, B, C and D of Form 8805 is a set. However, the partnership is only required to file Copy A with Form 8804. Therefore, only record one Form 8805 to the INTLWebApps Database when the partnership attaches two or more copies to Form 8804.

  3. If Form 8804-C,Certificate of Partner-Level Items to Reduce Section 1446 Withholding or a Statement under Treasury Regs 1.1446-6 is attached to Form 8805, then detach it from the Form 8805 and transship it to;

    Internal Revenue Service
    4-F23.142 Examination Branch
    2970 Market St.
    Philadelphia, PA 19104


    After, YOU HAVE ENTERED " Y" IN THE "8804-C CERT" FIELD, otherwise, if no Form 8804-C is attached to the Form 8805, then the "8804-C CERT" field on the IRMF 8805 record entry screen will remain with a Default" N" in the field.

  4. A new Form 8805 menu identified as IRMF Form 8805 (TP 200412 and Subsequent) will appear on the Project 1446 menu screen as "Option 7" to record the data.

  5. To improve data entry efficiency, the computer will store the foreign partners information into a partner table. The computer will import the name and address of the foreign partner into the Form 8805 record if it has been previously established. If not previously established, then you will need to enter it.

  6. Compare the imported data from the partners table against the paper Form 8805 to ensure that the most current foreign partner information is recorded. If different, then delete the incorrect information and enter the correct information.

  7. Special procedures are required for beneficiaries of foreign estates or trusts to claim credits that flow through to them from the estate or trust. The estate or trust must issue the beneficiary a Form 8805 with a completed Schedule T. The beneficiaries must attach a copy of the form to their return to claim the section 33 credit for section 1446 withholding tax paid by the partnership.

  8. The MFT for processing Form 8804 to the Master File will continue to be "08," and the program code will be 11340.

3.21.25.16.1  (01-01-2014)
New to Form 8805 Processing (Tax Period 200412 and Subsequent)

  1. Forms 8805 has its own DLN and is processed in OSPC. The DLN begins with "60546" . Form 8805 was previously processed at the PSPC and the DLN began with 98546.

    • District Office 60

    • Tax Class 5

    • Document Code 46

    • Blocking Series Range 000-999

    • Program 71770

3.21.25.16.2  (01-01-2014)
Form 8805 and Schedule T Fields to Record

  1. The following fields are recorded in the Project 1446 Database for Form 8805. The database includes separate buttons for each part of the form:

    • Form 8805 (Part 1)

    • Part 2

    • Part 3

    • Schedule T

    • Confirm

  2. Enter the following fields into Part 1.

    1. "Form 8805 DLN" : It must begin with 98546 (if processed in Philadelphia) or 60546 (if processed in Ogden).

      Note:

      The DLN field will appear in 4 segments. The first segment will be preset to display the File Location Code (FLC), Tax Class, and Document Code (Doc Code 60546). The second segment will be the Julian Date field (ddd) and Blocking Series (nnn). The third segment will be the Sequence Number (nn). The fourth segment is the List Year (n).

      Since most 8805s are received in DLN order, the Form 8805 data entry screen will repeat the same DLN number for the next record to be entered. This feature will help reduce the number of keystrokes and time it takes to enter the record. It is important to remember that when the DLN is the same, you will have to change the blocking series or sequence number of every DLN record, or else you’ll corrupt the Database.

      Caution:

      If a DLN already exists in the IRMF Form 8805 Database, and you attempt to enter the same DLN, you will receive an error message saying that the DLN list year is incorrect . The easiest thing to do would be to click on the "Remove Record" button on the tool bar (the icon is a red plus sign on a white piece of paper). This will remove the sequence portion of the DLN and place the cursor in the beginning location position of the DLN. Send the Form 8805 to numbering for a new DLN if you’re unable to enter the correct DLN.

    2. "WH Agent EIN" : Line 5b or 7 of Form 8805. The default is always Line 5b.

      Note:

      Once the EIN is entered, and if the Database has the information of the WH Agent name, then it will automatically fill-in.

    3. "WH Agent Name" : Line 5a or 6 of Form 8805. The default is always Line 5a.

    4. "Tax Period" : Enter the tax period in mm/dd/yyyy format. The earliest tax period accepted is 12/31/2004.

    5. Click "Next" at the bottom right of the screen.

  3. Enter the following data in to Part 2.

    1. "TIN Type" : Enter a "1" if an SSN, ITIN or IRSN number appears on Line 1b. If an EIN appears on Line 1b, then enter a "2" for the TIN Type.

    2. "TIN" : Enter the SSS/EIN that appears on Line 1b of Form 8805. If no TIN is present on Form 8805, leave field blank

    3. "Residence" : Select Foreign or domestic according to the address listed in 1c of Form 8805.

    4. "Country" : Enter the Country for the country listed on Line 4 of Form 8805. Select the country from the drop down list.

    5. "Partners Last Name or Foreign Entity Name" : Enter the partners’ last name from Line 1a of Form 8805, or the entire Foreign Entity Name.

    6. "Partners First Name" : Enter the partners’ First name from Line 1a of Form 8805. Do not enter any foreign entity name here.

    7. "Address Line 1" : Enter Line 1c of Form 8805.

    8. "Address Line 2" : Use this field to enter the additional address line from Line 1c.

    9. "Postal Code" : Enter as follows;
      Domestic Addresses -- Enter the domestic postal code from Line 1c of Form 8805.
      Foreign Addresses -- Leave the "Postal Code" field empty for foreign addresses.

    10. Click "Next" at the bottom right of the screen.

  4. Enter the following information into Part 3.

    1. "Tiered Partnership" : Depress this radio button when Line 8a of Form 8805 is marked.

      Caution:

      If Line 9 is a negative entry do not depress the Tiered Partnership button, instead depress the Effectively Connected Income (ECI) Flowthrough button.

    2. "Income Exempt" : Depress this radio button when Line 8b of Form 8805 is marked.

      Caution:

      Depressing this button will tell the program to enter "0" or leave "blank" the Total Section 1446 Tax field.

    3. "ECI Flowthrough" : Depress this radio button when Line 8a is marked and the entry on Line 9 is a negative amount. Or, the ECI entry on Line 9 is positive, but the tax on Line 10 is zero, and Line 8b is not marked.

      Reminder:

      Reminder: Do not depress the Tiered or Income Exempt buttons when the ECI Flowthrough button must be depressed.

    4. "Effectively Connected Taxable Income (ECI)" : Enter the amount on Line 9 of Form 8805 in this field. Enter a significant dollar entry (e.g. 125622 for $125,622.58) without the cents. However, if the ECI is a loss with a negative amount in brackets or a minus (125622), then enter the negative money amount as -125622.

    5. "Total Section 1446 Tax" : Enter the amount on Line 10 of Form 8805 in this field. Enter a significant dollar entry (e.g. $43,968 for $43,967.70) without the cents. However, if the ECI is a loss, then this field must be blank.

      Note:

      When the ECI Flowthrough button is depressed the Total Section 1446 Tax field will be blank. No entry, not even a zero will be accepted.

    6. "8804-C CERT" : This is a one character field. The valid characters are "Y" for YES and "N" for NO. This field will always be "Defaulted to N." Therefore, if Form 8804-C is attached to Form 8805 replace the "N" with a "Y" and then detach Form 8804-C. See IRM 3.21.25.16 (3).

    7. Click "Next" at the bottom left of the screen.

  5. The following fields are associated with the Schedule T – Beneficiary Information portion of Form 8805 as required by the Regulations under IRC § 1446. Depress the Schedule T button on the screen to get to the data entry screen to enter the data off of Form 8805 Schedule T, Lines 11a through 13.

    1. "TIN Type" : Enter a "1" if an SSN, ITIN or IRSN number appears on Line 11b. If an EIN appears on Line 1b, then enter a "2" for the TIN Type.

    2. "SSN/EIN:" Enter the TIN that appears on Line 11b of Form 8805. If no TIN is present on Form 8805, leave field blank

    3. "Residence" : Select foreign or domestic according to the address listed in 11c of Form 8805.

    4. "Beneficiary Last Name or Foreign Entity Name" : Enter the partners’ last name from Line 11a of Form 8805, or the entire Foreign Entity Name.

    5. "Beneficiary First Name" : Enter the partners’ First name from Line 11a of Form 8805. Do not enter any foreign entity name here.

    6. "Address Line 1" : Enter Line 11C of Form 8805.

    7. "Address Line 2" : Use this field to enter the additional address line from Line 11c, or if a Foreign address is present, use this field to enter the foreign City and Postal Code.

    8. "City" : Enter as follows:
      Domestic Addresses -- Enter the U.S. city name from Line 11c of Form 8805.
      Foreign Addresses -- Enter the foreign city name as well as the foreign postal code from Line 11c of Form 8805.

    9. "Postal Code" : Enter as follows:
      Domestic Addresses -- Enter the domestic postal code from Line 11c of Form 8805.
      Foreign Addresses -- leave the "Postal Code" field empty for foreign addresses.

    10. "Effectively Connected Taxable Income (ECTI)" : Enter the amount on Line 12 of Form 8805 in this field. Enter a significant dollar entry (e.g. 125622 for $125,622.58) without the cents. However, if the ECI is a loss with a negative amount in brackets or a minus (125622), then enter the negative money amount as -125622.

    11. "Total Section 1446 Tax" : Enter the amount on Line 13 of Form 8805 in this field. Enter a significant dollar entry (e.g. $43,968 for $43,967.70) without the cents. However, if the ECI is a loss, then this field must be blank.

    12. Click "Next" at the bottom left of the screen

    13. Verify the information. If correct, click the "Save" button near the top of the screen. If incorrect, click the "Back" button and correct the required fields.

3.21.25.16.3  (01-01-2014)
Query and/or Delete IRMF Form 8805

  1. In order to Query an IRMF Form 8805, you must select:

    1. Login to the INTLWebApps Application to access the Project 1446 Database.

    2. Select "Search/Edit" to begin a Form 8805 query.

    3. Enter at least two types of information into the fields to narrow down your search.

    4. Selecting "More Search Options" will display extra fields.

    5. Using the wildcard sign "%" before and after your information may help your query.

    6. Scroll through the responses until you find the correct record.

  2. If the IRMF record was entered in error, or with mistakes, you can delete the record by:

    1. Querying the record,

    2. Depressing the "Delete" button.

3.21.25.16.4  (01-01-2014)
Updating existing Form 8805 record

  1. In order to update and/or modify an existing IRMF Form 8805 you must:

    1. Login to the INTLWebApps Application to access the Project 1446 Database.

    2. Select "Search/Edit" to begin a Form 8805 query.

    3. Enter at least two types of information into the fields to narrow down your search.

    4. Selecting "More Search Options" will display extra fields.

    5. Using the wildcard sign "%" before and after your information may help your query.

    6. Scroll through the responses until you find the correct record.

    7. Locate the field that needs to be updated/modified and place the cursor in it.

    8. Use the keyboard delete or backspace key to remove the entry, and

      Note:

      You can also highlight the field and then type in the correct information.

    9. Type in the correct information.

    10. Lastly, depress the "Save" button.

3.21.25.16.5  (01-01-2014)
Disposition of Form 8805 Batch Work

  1. Upon completion of the batch work, release the completed batch work to the Product Assurance (PA) area for review. Otherwise, release it to the "Central File Control" (Document Retention Branch) of the OSPC.

  2. PA will forward the completed batch work to the "Central File Control" area after their review is complete.

3.21.25.17  (01-01-2014)
Form 1040NR Estate or Trust (CSPC Only)

  1. This subsection provides coding and editing instructions for the NMF Form 1040NR, U.S. Nonresident Alien Income Tax Return (Estate or Trust) to the Non Master File (NMF). These returns are filed to report income received by foreign Estates or Trusts.

  2. Form 1040NR Estate or Trust is processed under:

    • Function 210

    • Program Code 75700 - Sub-Function 75702

    • Document Locator Number (DLN) File Location Code 17 (Cincinnati)

    • Tax Class 6

    • Doc. Code 72 or 73

    • Blocking Series 000-999 is for Non-Remit and Blocking Series 600-699 is for Remit.

    • Non Master File Tax Code 20

  3. Batch Block Tracking System (BBTS) routing Sub-Program 75702:

    Form 1040NR Estate or Trust NMF Program 7570X, Sub-Program 75702BBTS Route 16 (NMF Remit & Non- Remit)
    110 - Mail Handling
    150 - Deposit Activities
    210 - Code and Edit
    180 - Batching
    190 - Numbering
    410 - Accounting Activity (NMF)
    420 - Account Services
    510 - Cycle Control and Servicing

  4. All Form 1040NR Estate or Trust returns are processed to the Non-Master File (NMF) database at the Cincinnati Submission Processing Center (CSPC).

    Note:

    A Form 1040NR Estate or Trust return is processed as a NMF return

    under Master File Tax (MFT) 20.

  5. Each Estate or Trust return must have an Employer Identification Number (EIN). If a Social Security or Individual Tax Identification Number (SSN or ITIN) appears at the top of the return instead of an EIN, then Form 1040NR was filed by a Non-Resident Alien (NRA) individual. A 1040NR return filed by a NRA is to be processed on the Individual Master File (IMF). Transship the IMF NRA 1040NR return to the Austin Submission Processing Center (AUSPC). Prepare Form 3210, Document Transmittal and mail to:

    Department of the Treasury
    Internal Revenue Service Center
    Austin, TX 73301-0215 U.S.A.

    Caution:

    If a NMF DLN has already been assigned to the 1040NR, take the return to your Lead Tax Examiner to have the DLN cancelled and deleted from the Service Center Control File (SCCF).

  6. If Form 1040NR-EZ is received for an Estate or Trust, take the following actions to ensure the taxpayer’s information can be processed:

    1. Prepare/Dummy Form 1040NR from Form 1040NR-EZ:
      • Enter entity information (name, address and EIN)
      • Place a check mark in the "Estate or Trust" box on the Form 1040NR.
      • Edit the Received Date present on the Form 1040NR-EZ to the Form 1040NR.
      • Transfer tax data from Form 1040NR-EZ, page 1 to corresponding lines on Form 1040NR, pages 1 and 2.
      • Attach original Form 1040NR-EZ behind Form 1040NR.
      • Confirm a valid EIN is present for the Estate or Trust. If valid EIN is not present, and is not found through IDRS research, route the return to Entity for research and/or EIN assignment.

      Note:

      Follow normal procedures (outlined in the subsequent sections) once the return is converted from Form 1040NR-EZ to Form 1040NR.

    2. Issue non-suspense correspondence to the taxpayer to inform them that they should file Form 1040NR in the future, using the following verbiage:
      "We received your Form 1040NR-EZ for your Estate or Trust. We converted your return to a Form 1040NR because fiduciary income cannot be claimed on Form 1040NR-EZ. In the future, please use Form 1040NR when filing."

      Exception:

      Do not issue correspondence if the return is a "final" return.

3.21.25.17.1  (01-01-2014)
♦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.

3.21.25.17.2  (01-01-2014)
♦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:

    1. The return was mailed in time to reach the Service through normal handling within the legal period but,

    2. 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 3.21.25.17.5 for information on the due date of Form 1040NR Estate or Trust.

  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.

3.21.25.17.2.1  (01-01-2014)
♦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, do not edit any of the Computer Condition Codes checked on the form.

      Note:

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

3.21.25.17.2.2  (01-01-2014)
♦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 returns or an attached Form 13496, "IRC 6020(b) Certification Form " must be signed by Compliance. If not, route to Compliance using Form 4227.

    3. Do Not correspond with the taxpayer for unprocessable conditions.

3.21.25.17.2.3  (01-01-2014)
♦Collection Secured♦

  1. These returns are identified by the notations: "TC 59X" or "ICS" . Do Not edit any CCC on these returns.

3.21.25.17.2.4  (01-01-2014)
♦Examination Prepared♦

  1. These returns are identified by the notation: "SFR" or "SUBSTITUTE FOR RETURN" on Page 1.

    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, instead continue processing.

    3. If Form 13133 is attached with instructions to edit a CCC, do not edit any CCC on the form.

    4. If the Received Date is more than 2 years and 9 months after the Return Due Date, send the return to Statute Control.

3.21.25.17.2.5  (01-01-2014)
♦Examination Secured♦

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

    Note:

    If the received date is more than 2 years 9 months after the Return Due Date. Do Not send to Statute Control function.

3.21.25.17.3  (01-01-2014)
Distinguishing Form 1040NR Estate or Trust Returns from Individual Returns

  1. Estate or Trust returns will have some or all of the following characteristics:

    • Name line(s) may consist of numbers or a combination of letters and numbers.

    • Account, Trust, Grantor, or Nominee may be indicated.

    • Name line(s) may indicate Estate of . . .

    • No filing status may be indicated.

    • No exemptions may be shown.

    • The personal exemption amount on Line 40 may be $300.00 (for Trusts distributing all of their income), $3,700.00 (for Qualified Disability Trusts), or $100.00 for any other type of Trust), whereas an Estate can only claim $600.00.

    • The return may have an EIN instead of an SSN or ITIN Number.

    • The trust will show deductions for distributions made to U.S. or foreign beneficiaries. The trust may state that it is a grantor trust of a foreign owner. If so, flag the return (staple a Yellow Tag on the Upper Left Hand Corner (ULHC) of Form 1040NR and visibly write LB&I Examination on it). Accounting will forward the return to Examination after they have processed the return to the NMF system. Refer to alpha list IRM 3.21.25.17.6 (1) c) for the forwarding address.

3.21.25.17.4  (01-01-2014)
Re-Entry Document (Form 1040NR Estate or Trust Only)

  1. A return posted to the IMF in error must be reprocessed to post to the NMF.

    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. If you receive a Form 1040NR Estate or Trust re-entry document, make sure the Entity portion of the return reflects an EIN, along with the name of an Estate or Trust. If not, then forward to Entity on a Form 4227 to have them look up the correct Estate or Trust entity data. Once it is returned from Entity, or if the return Entity is already correct, follow the instructions in IRM 3.21.25.17.7 (2) to have the return assigned a NMF DLN.

    Note:

    If a NMF DLN 17672 or 17673 is already present on the return, prepare Form 4227, Intra-SC Reject or Routing Slip with the explanation "NMF 1040NR Estate or Trust " and forward to the NMF Accounting, Stop 21 Team 104, and staple it to the face of the document.

3.21.25.17.5  (01-01-2014)
Due Date

  1. If Form 1040NR is being filed for a NRA Estate or Trust that has an office in the United States, the return is due by the 15th day of the 4th month following the close of the tax year. (For a calendar year return, the due date is April 15.)

    Note:

    This type of return will be assigned a DLN beginning with "17673."

  2. If Form 1040NR is being filed for a NRA Estate or Trust that does not have an office in the United States, the return is due by the 15th day of the 6th month following the close of the tax year. (For a calendar year return, the due date is June 15.)

    Note:

    This type of return will be assigned a DLN beginning with "17672."

    Reminder:

    If the regular due date for filing falls on a Saturday, Sunday, or legal holiday, Form 1040NR is due by the next business day.

  3. If the Estate or Trust cannot file the return by the due date, they can file Form 4868 to get an automatic 6-month extension of time to file. The Estate or Trust must file Form 4868 by the regular due date of the return and to the address listed in the instruction portion of Form 4868.

    Estates and Trusts must mail Form 1040NR to:
    Department of the Treasury
    Internal Revenue Service Center
    Cincinnati, OH 45999-0048 U.S.A.

3.21.25.17.5.1  (01-01-2014)
Early Filed Returns

  1. Never send an Early Filed return back to the taxpayer.

  2. If the month of the Tax Period is the same or after the month of the processing date, determine how early the return has been filed using the table below:

    If... Then...
    The processing date is prior to the Tax Period Ending by 3 months or less. Process as usual.
    The processing date is prior to the Tax Period Ending by more than 3 months. Attach an approved Correspondence Action Sheet to request confirmation of the Tax Period Ending.

3.21.25.17.6  (01-01-2014)
Document Perfection

  1. Verify only the items below:

    1. Name Control: Underline name control in red. Be certain that the name control of the trust itself is indicated, rather than that of the bank or other company.

    2. Identifying Number: Determine the EIN as follows:

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

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

      Multiple EINs are present, You can determine the correct EIN from the attachments and/or schedules, Edit the EIN to the proper location.
      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 or Numbered
      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.

      "PENDING" , "APPLIED FOR," etc., is indicated in the EIN area, Unnumbered or Numbered
      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.

    3. Street Address: If the return shows an address in ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ with "Foreign Trust Organization" on Form 3210 , Document Transmittal at:

      Internal Revenue Service
      Attn: Jack Loggia
      BLN 2-H08.200
      2970 Market Street
      Philadelphia, PA 19104

      Do not edit the Address.

    4. Tax Period: Edit the tax period in "YYYYMM" format on Form 1040NR, 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.

    5. Received Date: A Received Date is required on all Form 1040NR returns and it may or may not be stamped on the face of the return. A valid Received Date Stamp appears in MMDDYYYY format. Use the chart below to perfect the received date.

      If... 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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and 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.
      The Received Date stamp is not present or the date is illegible or invalid, Determine the received date in the following order:
      1. Service Center Automated Mail Processing System (SCAMPS) digit date.

      2. Revenue Officer's signature date.

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

        Note:

        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.

      4. Julian control date minus 10 days.

      5. Current date minus 10 days.

      Edit the Received Date in MMDDYYYY format in the center of Page 1 of the return.
      An envelope is not attached Use the postmark date stamped on the face of the return.
      An envelope has a USPS and private metered postmark Always use the USPS postmark.

      Note:

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

      An envelope has two private metered postmarks Use the latest private metered postmark.

      Note:

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

      An envelope has only one private metered postmark Use the private metered postmark.

    6. Line 61b: Form 8805,Foreign Partner's Information Statement of Section 1446 Withholding Tax: This line must be numeric. Negative entries are to be "X'd" out. Form 8805 must be attached to support the withholding on Line 61b. If no Form 8805 is attached and the credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the credit. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ allow the credit.

    7. Math-verify taxpayers computation (Compute Line 60). If ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ accept return as filed. If the computed Total Tax amount is greater than ≡ ≡ ≡ ≡ ≡ of the taxpayers calculations, "X" the entry on Line 60 and edit your re-computed calculations. Compute by:

      Line Computing Tax
      44 Add the amounts on Lines 42 and 43 to arrive at the amount for Line 44.
      51 Add the amounts from Lines 45 thru 50 to arrive at the amount for Line 51
      52 Subtract Line 51 from Line 44 to arrive at the amount for Line 52.
      60 Add the amounts from Lines 52 thru 59 to arrive at the amount for Line 60.

    8. Line 61c: Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests: This line must be numeric. Negative entries are to be "X'd" out. Form 8288-Amust always be credit verified by the FIRPTA Code and Edit unit (in Ogden) by calling 801-620-7584 or faxing to 801-620-6575 to obtain FIRPTA credit verification. Once verified, Ogden will fax Form 13698, International Credit Verification Slip (within 48 hours) to attach to Form 1040NR. There is no ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      If Form 13698 verifies an amount other than the amount listed on the document, "X" the credit on Line 61c and edit the correct amount verified on the 1040NR return that is reflected on Form 13698. If the taxpayer claims $14,000, but Form 13698 verifies $7,000, then "X" the credit on Line 61c and edit $7,000.

    9. Line 61d: Form 1042-SForeign Person’s U.S. Source Income Subject to Withholding: This line must be numeric. Negative entries are to be "X'd" out. Form 1042-S must be attached to support the withholding on Line 61d. If no Form 1042-S is attached and the credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the credit. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ allow the credit.

    10. Line 67, Box c: If there is an amount present on Line 67 and check box "c" is checked, and the return is being filed for an Estate and Trust, you will need to "X" out the amount on Line 67 and circle out box "c." Edit the re-computed Line 67 amount. Re-compute the amount by subtracting the amount found on Form 8801, Line 27 from the entry on Form 1040NR Line 67. Estate's and Trust's are not eligible to claim this credit.

    11. Signature: If the return is unsigned, attach an approved Correspondence Action Sheet to request the taxpayer signature. DO NOT CORRESPOND IF FACSIMILE SIGNATURE IS PRESENT.

  2. If Form 1040NR is delinquent (See IRM 3.21.25.17.2), 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 Cincinnati Accounts Management Campus (CAMC), BMF INT'L unit, . In the remarks area write "Process attached Reasonable Cause Correspondence. TC 150 to post to NMF in 4 weeks."

    3. Continue processing Form 1040NR.

3.21.25.17.7  (01-01-2014)
Disposition of Returns

  1. Once all numbered Form 1040NR Estate or Trust returns have been edited, forward the return to Accounting.

  2. Once all UN-numbered Form 1040NR Estate or Trust returns have been edited, forward the return to the Numbering function. Once Numbering has numbered the 1040NR Estate or Trust return, then Numbering will forward the numbered return to Accounting.

Exhibit 3.21.25-1 
♦U.S. Possessions ZIP Codes♦

Exhibit3.21.25-1U.S. Possessions ZIP Codes
American Samoa (AS)
City ZIP Code   City ZIP Code
Faga'itua 96799   Olosega Manua' 96799
Leone 96799 Pago Pago 96799
Federated States of Micronesia (FM)
City ZIP Code   City ZIP Code
Chuuk 96942   Pohnpei 96941
Kosrae 96944 Yap 96943
Guam (GU)
City ZIP Code   City ZIP Code
Agana 96910   Tamuning 96931
Inarajan 96917 Umatac 96915
Merizo 96916 Yona 96915
Marshall Islands (MH)
City ZIP Code   City ZIP Code
Ebeye 96970   Majuro 96960
Northern Mariana Islands (MP)
City ZIP Code   City ZIP Code
Capitol Hill 96950   Saipan 96950
Rota 96951 Tinian 96952
Palau (PW)
City ZIP Code   City ZIP Code
Koror 96940   Palau 96940
Puerto Rico (PR)
City ZIP Code   City ZIP Code
Adjuntas 00601   La Plata 00786
Aguada 00602 Lares 00669
Aguadilla 00603 Las Marias 00670
Aguas Buenas 00703 Las Piedras 00771
Aguirre 00704 Levittown 00949
Aibonito 00705 Loiza 00772
Anasco 00610 Loiza Street Station 00936
Angeles 00611 Luquillo 00773
Arecibo 00612 Manati 00674
Arroyo 00714 Maricao 00606
Bajadero 00616 Maunabo 00707
Barceloneta 00617 Mayaguez 00680
Barranquitas 00794 Mercedita 00715
Barrio Obrero Station 00935 Minillas Center 00936
Bayamon 00956 Moca 00676
Boqueron 00622 Morovis 00687
Cabo Rojo 00623 Naguabo 00718
Caguas 00725 Naranjito 00719
Camuy 00627 Orocovis 00720
Canovanas 00729 Palmer 00721
Caparra Heights 00920 Patillas 00723
Carolina 00982 Penuelas 00624
Catano 00962 Ponce 00731
Cayey 00736 Puerta de Tierra 00936
Ceiba 00735 Puerta Real 00740
Cerro Gordon 00754 Punta Santiago 00741
Ciales 00638 Quebradillas 00678
Cidra 00739 Ramey 00603
Coamo 00769 Rincon 00677
Comerio 00782 Rio Blanco 00744
Condado 00907 Rio Grande 00721
Corozal 00783 Rio Piedras 00927
Coto Laurel 00780 Rosario 00636
Culebra 00775 Sabana Grande 00637
Dorado 00646 Sabana Hoyos 00688
Ensenada 00647 Sabana Seca 00952
Esperanza 00765 Saint Just 00978
Fajardo 00738 Salinas 00751
Fernandez Juncos 00936 San Antonio 00690
Florida 00650 San Francisco 00927
Fort Buchanan 00934 San German 00683
Garrachales 00652 San Juan 00936
Guanica 00653 San Lorenzo 00754
Guayama 00784 San Sebastian 00685
Guayanilla 00656 Santa Isabel 00757
Guaynabo 00965 Santurce 00936
Gurabo 00778 Toa Alta 00953
Hatillo 00659 Toa Boa 00949
Hato Rey 00936 Trujillo Alto 00976
Hormigueros 00660 University 00936
Humacao 00791 Utuado 00641
Isabela 00662 Vega Alta 00692
Jayuya 00664 Vega Baja (box 1-9049) 00694
Juana Diaz 00795 Vieques 00765
Juncos 00777 Villalba 00766
La Cumbre 00926 Yabucoa 00767
Lajas 00667 Yauco 00698
Virgin Islands - U.S. (VI - Entity Section) (VQ - Other than Entity Section)
City ZIP Code   City ZIP Code
Charlotte Amalie 00802   Saint Croix 00820
Christiansted 00820 Saint John 00830
Cruz Bay 00830 Saint Thomas 00805
Downtown 00840 Sunny Isle 00850
Frederiksted 00840 Veterans Annex 00820
Kingshill 00850      

Exhibit 3.21.25-2 
Form 8288-B Withholding Certificate

Exhibit3.21.25-2Form 8288-B Withholding Certificate
seller/Seller buyer/Buyer
3307 (Zero/Exempt - TIN for Refund)
3308 (Reduced MTAXL - TIN for Refund)
3309 (Zero/Exempt - Generic)
3310 (Reduced MTAXL - Generic)
3311 (Reduced NOL)
3312 (Reduced Installments)
3313 (Rejected - RFMI not Recd)
3314 (Rejected - MTAXL >10%)
3315 (Filed 8288-B Late)
3319 (RFMI)
3320 (Interim Letter)
3793 (No TIN – 8288-B)
3309 (Zero/Exempt - Generic)
3310 (Reduced MTAXL - Generic)
3312 (Reduced Installments)
3313 (Rejected - RFMI not Recd)
3314 (Rejected - MTAXL >10%)
3316 (Rejected - Generic)
3318 (Filed 8288-B Late)
3319 (RFMI)
3320 (Interim Letter)
3497 (Reduced - Generic)
3793 (No TIN – 8288-B)

Exhibit 3.21.25-3 
Form 13698, International Credit Verification Slip

Exhibit3.21.25-4Form 13698, International Credit Verification Slip

Exhibit 3.21.25-4 
Form HUD-1, Settlement Statement

Exhibit3.21.25-5Form HUD-1, Settlement Statement
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