3.30.123  Processing Timeliness: Cycles, Criteria and Critical Dates (Cont. 1)

3.30.123.6 
Processing Timeliness Criteria for IMF Domestic Income Tax Returns, International IMF Income Tax Returns, Domestic and International Tax Returns Delayed for Individual Taxpayer Identification Number (ITIN) Processing, Extension Requests, Estimated Payments, Amended Tax Returns and ITIN Applications

3.30.123.6.1 
Domestic Form 1040 Series Other Than Full-Paid (OTFP) Tax Returns

3.30.123.6.1.3  (01-01-2014)
Special Processing Considerations for Domestic - OTFP IMF Tax Returns

  1. To the extent possible, to avoid refund interest paid, refund tax returns are to be processed so the refund is issued to the taxpayer within 45 calendar days of the later of:

    1. The return due date (determined without regard to any extension of time for filing the return).

    2. The return received date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return).

    3. The date the return was received in processable form.

    Exception:

    An interest-free period of 180 days applies to an overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code. See IRM 20.2.4.7.6Manual Refunds

  2. Campus management must ensure that staffing is sufficient and inventory levels are low enough going into the April peak to meet the OTFP PCD of May 21, 2014

  3. Proper inventory production and control must be in place to ensure that in addition to the emphasis on the OTFP Refund PCD and on the OTFP Non-Refund Sort PCD, appropriate emphasis is also placed on processing approved Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, prior to processing OTFP tax returns received after the end of the April counting period. See IRM 3.30.123.6.7, Form 1040 Series Extensions - Form 4868.

  4. Other Requirements

    1. All Tax Period 201312 OTFP tax returns that are in BOBs, Code and Edit, or Rejects status need to have a TC 599, CC 18 input in 3 cycles prior to the Delinquency Check.

    2. Continue processing once you have input the transaction to suppress the delinquency notice.

3.30.123.6.1.4  (01-01-2014)
PCD Definition for Domestic - OTFP IMF Tax Returns

  1. By Program Number, Program Completion will be considered accomplished when the cumulative Good Tape production (Function 950) is equal to or greater than the cumulative number of processable receipts received for that Program Number and are received by the end of the counting period ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , so long as that Good Tape production is reached on or before the established PCD.

  2. Determine processable receipts by using the following formula for each PCD:

    • Function 110 (Receipts)

    • Minus Function 920 (Rejects) closing inventory

    • Minus Function 940 (Block Deletions) cumulative receipts

    • Minus Function 960 (Program Deletions) cumulative production

    Note:

    The following provides the data sources to be used in computing processable receipts.

    1. Function 110 cumulative volume for each counting period receipts come from the Function Volume Report within the Production Information and Monitoring System (PIMS).

    2. Function 940 cumulative receipts and Function 960 cumulative production volumes come from the Balance Forward Listing, PCD-03-44.

    3. Function 920 closing inventory and Function 950 cumulative volume comes from the Balance Forward Listing, PCD-03-44.

    Note:

    If using Function 180 (Batching Activities) cumulative production instead of Function 110, add Function 180 closing inventory (use zero if negative), minus Functions 920, 940, 960, and Function 970 (Reinputs) cumulative production. Function 970 volume comes from the Daily Production Report, PCC-22-40.

3.30.123.6.1.5  (01-01-2013)
Measuring the OTFP - PCD Accomplishment

  1. When evaluating the PCD Accomplishment for OTFP tax returns for the May Refund PCD, those campuses electing to perform the additional sort to segregate refund tax returns from all other OTFP tax returns may exclude the categories below from the May 15 PCD measurement.

    • Balance due tax returns

    • Credit elect tax returns

    • Even balance tax returns

    • Non-taxable tax returns

    • Part-paid tax returns

  2. When evaluating the PCD Accomplishment for OTFP tax returns for the May No-Refund Sort PCD, no categories of OTFP tax returns are excluded from cumulative number of processable receipts received by the end of the counting period.

3.30.123.6.1.6  (01-01-2014)
Domestic Form 1040 Series OTFP (AUSPC, FSPC, KCSPC Only) (Programs 43110, 43130, 44110 and 47130) Processing Specifications

  1. STATUTORY DUE DATES for Form 1040, Form 1040-A and Form 1040-EZ:

    • April 15

    • June 15 (Taxpayers living abroad-automatic extension)

    • October 15 (If Extension Request is filed timely - April 15)

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

    Note:

    If an electronically filed tax return has been rejected by the IRS and the taxpayer files a paper tax return; the paper tax return will be considered timely filed if postmarked by the later of the due date of the tax return or 10 calendar days after the date of the notification that the electronic submission was rejected. See IRM 3.30.123.12.2, Electronic Postmark and Return Due Date.

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. See IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter, unless indicated as BBTS Accomplished Cycle. See IRM 3.30.123.4.2, BBTS Accomplished Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 11 days or lower and should not exceed 13, with the following exceptions:

      Time Frames Action
      April 1 - 11, 2014 Reduce inventories and cycle lengths below normal as much as possible by April ??. Ideal days in cycle should be seven days or below.
      April 12 - 25, 2014 Remain on an 11 day or shorter cycle.
      April 26 - May 21, 2014 Process tax returns to meet OTFP PCD of May 21, 2014.
      May 22-31, 2014 Reach a 10 day BBTS Accomplished Cycle as quickly as practical.
      June 1 - December 31, 2014 Maintain a BBTS Accomplished Cycle of no more than 10 days.

    • OTFP 1040 series tax returns sorted as no-refund tax returns received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ identified as no-refunds should, to the extent possible, be processed by May 28, 2014. See IRM 3.30.123.6.1.5, Measuring the OTFP PCD Accomplishment. Cycle goals do not apply.

  3. SCHEDULING CYCLE: All tax returns should be scheduled to meet the processing requirements noted above and throughout this IRM.

  4. REFUND TIMELINESS REMINDER: Refunds must be issued within 45 calendar days to avoid interest payments. However, to meet the customer service goals set forth in the Annual Business Plan, refund tax returns should be processed so that the refund is received within 40 calendar days of the estimated date on which the taxpayer mailed the tax return.

    Exception:

    An interest-free period of 180 days applies to an overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code. See IRM 20.2.4.7.6Manual Refunds

  5. CAMPUS PROGRAM COMPLETION DATES:

    • Refund PCD (April Peak) - May 21, 2014- Cycle 201421

    • Non-Refund Sort PCD - May 28, 2014 - Cycle 201422

    • OTFP PCD (June Peak) - July 16, 2014 - Cycle 201429

    • OTFP PCD (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.6.2  (01-01-2014)
Domestic Form 1040 Series Full-Paid (FP) Tax Returns

  1. This subsection contains form/program specific information related to timely processing of Domestic IMF FP tax returns.

3.30.123.6.2.1  (01-01-2014)
Domestic FP Definition

  1. FP tax returns are tax returns that meet all of the following requirements:

    • Are received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or

    • Are received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and have a postmark on or before April 15 or the due date. (See Holiday or Weekend Impact ,IRM 3.30.123.2.2).

    • Are computed by the taxpayer as a balance due tax return.

    • Are accompanied by a payment for exactly the computed balance due.

  2. FP tax returns explicitly exclude:

    • Delinquently filed tax returns

    • Tax returns accompanied by a payment for an amount greater than the computed balance due

    • Tax returns with Form 14039, Identity Theft Affidavit attached

3.30.123.6.2.2  (01-01-2014)
Special Processing Considerations for Domestic FP IMF Tax Returns

  1. Since the entity section of FP tax returns may contain change information from what IRS has on file, some FP tax returns are implied entity change requests. To the extent possible, FP tax returns should be processed so that entity updates can be made to the taxpayer’s account within 90 calendar days.

  2. Although OTFP tax returns take priority (to avoid paying refund interest), FP tax returns should be processed as fill in work, when possible, prior to the April peak.

    Exception:

    If a Form 14039, Identity Theft Affidavit, is attached to a FP tax return process upon receipt, do not shelf.

  3. As campus management ensures that staffing is sufficient and OTFP inventory levels are low, going into the April peak, management should also work to reduce FP inventory levels, to the extent practical, going into the April peak.

  4. Once April Peak processing is underway, FP tax returns may be shelved until Program Completion has been accomplished for refund and no-refund sort tax returns. As those PCDs are accomplished and OTFP emphasis returns to a 10 day or lower BBTS Accomplished Cycle, FP tax return processing should resume.

  5. Similarly, care must be taken with all FP tax returns to ensure that the DLNs assigned do not contain Julian Dates higher than 155. GMF processing contains a validity check which presumes that all domestic IMF tax returns processed with a Julian Date higher than 155 were likely received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Since FP tax returns by definition are received by this date, they should not carry a transcribed IRS Received Date. Thus, if these tax returns carry a DLN with a Julian Date higher than 155, they will fall out to ERS.

3.30.123.6.2.3  (01-01-2014)
PCD Definition for Domestic FP IMF Returns

  1. By Program Number, Program Completion will be considered accomplished when the cumulative Good Tape production (Function 950) is equal to or greater than 99.9 percent of the cumulative number of processable receipts received for that Program Number received by ≡ ≡ ≡ ≡ ≡ , so long as that Good Tape production is reached on or before the established PCD.

  2. Determine processable receipts by using the following formula for each PCD:

    • Function 110 (Receipts)

    • Minus Function 920 (Rejects) closing inventory

    • Minus Function 940 (Block Deletions) cumulative receipts

    • Minus Function 960 (Program Deletions) cumulative production

    Note:

    The following provides the data sources to be used in computing processable receipts.

    1. Function 110 cumulative volume for each counting period receipts come from the Function Volume Report within the Production Information and Monitoring System (PIMS).

    2. Function 940 cumulative receipts and Function 960 cumulative production volumes come from the Daily Production Report, PCC-22-40

    3. Function 920 closing inventory and Function 950 cumulative volume comes from the Balance Forward Listing, PCD-03-44.

      Note:

      If using Function 180 (Batching Activities) cumulative production instead of Function 110, add Function 180 closing inventory (use zero if negative) minus 920, 940, 960, and Function 970 (Reinputs) cumulative production . Function 970 volume comes from the Daily Production Report, PCC-22-40.

3.30.123.6.2.4  (05-16-2011)
Measuring FP - PCD Accomplishment

  1. When evaluating the Program Completion Accomplishment for FP tax returns for the July PCD, there are no categories of tax returns excluded from the volume of processable receipts. Returns that fallout to BOBs and ERS are considered processable and must be corrected prior to PCD. BOB and Error inventory should be evaluated to determine the daily production needed to clear the inventory and meet PCD.

  2. Management at the Headquarters and Campus levels must diligently monitor the volumes of FP tax returns being processed starting in mid-April through May and June to ensure that the number of tax returns that need to be transcribed per day to accomplish Program Completion does not become unreasonably large.

  3. Similarly, Campus Management must monitor processing of Rejects to ensure timely processing and that inventories do not exceed the over aged guidelines.

3.30.123.6.2.5  (01-01-2014)
Domestic Form 1040 Series FP (AUSPC, FSPC, KCSPC Only) (Programs 43210, 44120 and 47140) Processing Specifications

  1. STATUTORY DUE DATES for Form 1040, Form 1040-A and Form 1040-EZ:

    • April 15

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. See IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter, unless indicated as BBTS Accomplished Cycle. See IRM 3.30.123.4.2, BBTS Accomplished Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 11 days or lower and should not exceed 13, with the following exceptions:

      Time Frames Action
      April 11 - May 28, 2014 Do not exceed a 45 day cycle.
      May 29 - July 9, 2014 Process tax returns to meet FP PCD of July 9, 2014.
      July 10 - December 31, 2014 Maintain a Batching to Function 610 cycle of no more than five days. Clear tax returns from Rejects as soon as possible.

  3. SCHEDULING CYCLE: All tax returns should be scheduled to meet the processing requirements noted above and throughout this IRM.

  4. CAMPUS PROGRAM COMPLETION DATES:

    • Full-Paid (April Peak) -July 9, 2014- Cycle 201428.

3.30.123.6.3  (01-01-2014)
Domestic Form 1040 Series Tax Returns Delayed for ITIN Application Processing

  1. This subsection contains form/program specific information related to timely processing of Domestic Form 1040 Series tax returns delayed for ITIN Application processing. Form W-7 or Form W-7(SP), Application for IRS Individual Taxpayer Identification Number, must be complete before an ITIN can be assigned to make the tax return processable. See IRM 3.30.123.6.10, Form W-7 and W-7(SP) Processing Specifications (AUSPC).

3.30.123.6.3.1  (01-01-2014)
Domestic Form 1040 Series Tax Returns Delayed for ITIN Application Processing Definition

  1. All Domestic Form 1040 Series tax returns received with a Form W-7 or Form W-7(SP), Application for IRS Individual Taxpayer Identification Number, cannot be processed until the ITIN is assigned.

  2. Domestic Form 1040 Series tax returns delayed for ITIN Application processing include both FP and OTFP tax returns.

3.30.123.6.3.2  (01-01-2014)
Special Processing Considerations for Domestic Form 1040 Series Tax Returns Delayed for ITIN Application Processing

  1. Domestic Form 1040 Series tax returns received with Form W-7 or Form W-7(SP), Application for IRS Individual Taxpayer Identification Number, are presumed not to contain all information required for their processing, as they lack the Individual Taxpayer Identification Number (ITIN) which the applicant has requested.

  2. The ITIN which the applicant has requested cannot be included on the tax return until the requested ITIN has been assigned, or cannot be excluded from the tax return until the ITIN application has been rejected. Thus, the ITIN application must be processed to completion before the accompanying tax return can be considered processable. Until the application has been processed to completion, the accompanying tax return must remain with the application.

  3. Care must be taken to preserve the integrity of the IRS Received Date of the tax returns.

  4. Similarly, care must be taken to preserve the integrity of the Return Processable Date (RPD) on the accompanying tax return.

  5. Once the application has been processed to completion (and the RPD has been applied when appropriate), the accompanying tax return can be released for pipeline processing.

3.30.123.6.3.3  (01-01-2014)
PCD Definition for Domestic Form 1040 Series Tax Returns Delayed for ITIN Application Processing

  1. The traditional approaches for measuring program completion for various tax returns do not apply well to this group of tax returns. Most of the traditional approaches assume that the IRS Received Date is roughly the date on which tax return processing can begin. Since this is not the case with tax returns delayed for ITIN application processing, a definition for accomplishing program completion that captures the essence of completing tax return processing in a reasonable amount of time after the tax return processing can begin, is better than the traditional definitions.

  2. By Program Number, Program Completion will be considered accomplished when the cumulative volumes produced (in this case, from System Operations) in Function 610 is equal to, or greater than 100 percent of the cumulative number of receipts for that Program Number batched 10 working days prior to the established PCD.

3.30.123.6.3.4  (01-01-2014)
Measuring Domestic Form 1040 Series Tax Returns Delayed for ITIN Application Processing PCD Accomplishment

  1. When evaluating the PCD Accomplishment for 1040 series Delayed for ITIN Application Processing tax returns for the May PCD for OTFP tax returns, there are no categories of tax returns excluded from the volume of batched receipts. Since the point of comparison is Function 610 rather than Function 950, no consideration for volumes of tax returns that are in inventory in ERS or Rejects needs to be made.

  2. When evaluating the PCD Accomplishment for 1040 series Delayed for ITIN Application Processing tax returns for the July PCD for FP tax returns, there are no categories of tax returns excluded from the volume of batched receipts. Since the point of comparison is Function 610 rather than Function 950, no consideration for volumes of tax returns that are in inventory in ERS or Rejects needs to be made.

  3. Definition for Domestic OTFP. See IRM 3.30.123.6.1.2, Domestic OTFP Definition. Definition for Domestic FP. See IRM 3.30.123.6.2.1, Domestic FP Definition.

3.30.123.6.3.5  (01-01-2014)
Domestic Form 1040 Series Tax Returns Delayed for ITIN Application (AUSPC Only) (Programs 43170, 44170 and 47160) Processing Specifications

  1. STATUTORY DUE DATES for Form 1040, Form 1040-A and Form 1040-EZ:

    • April 15

    • October 15 (Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, will state "ITIN TO BE REQUESTED" and Form 6401, Request for Missing Information, will be attached to the tax return since the IDRS TC could not post).

      Note:

      See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as BBTS Accomplished Cycle. IRM 3.30.123.4.2, BBTS Accomplished Cycle - A Day Counter

    • Cycles should be maintained at a level of 10 working days or less from Batching to Function 610 cycle.

  3. SCHEDULING CYCLE: All tax returns should be scheduled to meet the processing requirements noted above and throughout this IRM.

  4. CAMPUS PROGRAM COMPLETION DATES:

    • Refund PCD (April Peak) - May 21, 2014 - Cycle 201421

    • Full-Paid PCD (April Peak) - July 16, 2014 - Cycle 201429

    • OTFP PCD (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.6.4  (01-01-2014)
International Form 1040 Series OTFP Tax Returns

  1. This subsection contains form/program specific information related to timely processing of International IMF tax returns. The requirements for IMF International processing can be found by referring to IRM 3.21.3, Individual Income Tax Returns, owned by SE:W:CAS:SP:PPB:IMF.

  2. Form 1040-NR, U.S. Nonresident Alien Income Tax Return, Fiduciary Returns (indicated by a checked box, Name of Estate or Trust, or EIN) are processed by CSPC as Automated Non-Master File (ANMF) tax returns. If received at another campus, transship to CSPC.

3.30.123.6.4.1  (01-01-2014)
International Form 1040 Series OTFP Tax Returns

  1. This subsection contains form/program specific information related to timely processing of IMF International OTFP tax returns.

3.30.123.6.4.2  (01-01-2011)
International OTFP Definition

  1. OTFP tax returns include the following:

    • Refund tax returns

    • Balance due tax returns

    • Credit elect tax returns

    • Even balance tax returns

    • Non-computed tax returns

    • Non-taxable tax returns

    • Part-paid tax returns

    • Delinquently filed tax returns

3.30.123.6.4.3  (01-01-2014)
Special Processing Considerations for International OTFP IMF Tax Returns

  1. To the extent possible, to avoid refund interest paid, refund tax returns are to be processed so that the refund is issued to the taxpayer within 45 calendar days of the later of:

    1. The return due date (determined without regard to any extension of time for filing the return.

    2. The return received date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return.

    3. The date the return was received in processable form.

    Exception:

    An interest-free period of 180 days applies to an overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code. See IRM 20.2.4.7.6Manual Refunds

  2. Campus management must ensure that staffing is sufficient and inventory levels are low enough going into the April peak to meet the OTFP PCD of May 21, 2014.

  3. Proper inventory production and control must be in place to ensure that in addition to the emphasis on the OTFP Refund PCD and on the OTFP Non-Refund Sort PCD, appropriate emphasis is also placed on processing approved Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, prior to processing OTFP tax returns received after the end of the April counting period. See IRM 3.30.123.6.7, Form 1040 Series Extensions - Form 4868.

3.30.123.6.4.4  (01-01-2014)
PCD Definition for International OTFP IMF Tax Returns

  1. By Program Number, Program Completion will be considered accomplished when the cumulative Good Tape production (Function 950) is equal to or greater than the cumulative number of processable receipts received for that Program Number and are received by the end of the counting period ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , so long as that Good Tape production is reached on or before the established PCD.

  2. Determine processable receipts by using the following formula for each PCD:

    • Function 110 (Receipts)

    • Minus Function 920 (Rejects) closing inventory

    • Minus Function 940 (Block Deletions) cumulative receipts

    • Minus Function 960 (Program Deletions) cumulative production

    Note:

    The following provides the data sources to be used in computing processable receipts.

    1. Function 110 cumulative volume for each counting period receipts come from the Function Volume report within the Production Information and Monitoring System (PIMS).

    2. Function 940 cumulative receipts and Function 960 cumulative production volumes comes from the Daily Production Report, PCC-22-40.

    3. Function 920 closing inventory and Function 950 cumulative volume comes from the Balance Forward Listing, PCD-03-44.

    Note:

    If using Function 180 (Batching Activities) cumulative production instead of Function 110, add Function 180 closing inventory (use zero if negative) minus Function 920, 940,960, and Function 970 (Reinputs) cumulative production. Function 970 volume comes form the Daily Production Report, PCC-22-40.

3.30.123.6.4.5  (01-01-2014)
Measuring OTFP - PCD Accomplishment

  1. When evaluating the PCD Accomplishment for OTFP tax returns for the May Refund PCD, Austin may elect to perform the additional sort to segregate refund tax returns from all other OTFP tax returns and exclude the categories below from the May 21, 2014, PCD measurement.

    • Balance due tax returns

    • Credit elect tax returns

    • Even balance tax returns

    • Non-taxable tax returns

    • Part-paid tax returns

  2. When evaluating the PCD Accomplishment for OTFP tax returns for the May No-Refund Sort PCD, no categories of OTFP tax returns are excluded from cumulative number of processable receipts received by the end of the counting period.

3.30.123.6.4.6  (01-01-2014)
International Form 1040 Series OTFP (AUSPC Only) (Programs 46110, 46120, 46130, 46140, and 46150) Processing Specifications

  1. STATUTORY DUE DATES for Form 1040, Form 1040-A, Form 1040-EZ, Form 1040-NR, Form 1040 (PR) and Form 1040-SS:

    Note:

    See Holiday or Weekend Impact IRM 3.30.123.2.2

    Form STATUTORY DUE DATE Characteristic
    Form 1040, Form 1040-A, Form 1040-EZ April 15 Contains an international component
      June 15 Taxpayer living abroad-Automatic two month Extension
      October 15 If Extension filed timely (April 15)
    Form 1040-NR, Form 1040-NR-EZ April 15 Effectively Connected Income
      October 15 If Extension filed timely (April 15)
      June 15 Income Not Effectively Connected
      December 15 If Extension filed timely (October 15)
    Form 1040 (PR) and Form 1040-SS April 15  
      December 15 If Extension filed timely (October 15)

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. See IRM 3.30.123.4.1, Operating Number of days in Cycle - A Day Counter, unless indicated as BBTS Accomplished Cycle. See IRM 3.30.123.4.2, BBTS Accomplished Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 11 days or lower and should not exceed 13, with the following exceptions:

    Time Frame: Action:
    April 1 – 11, 2014 Reduce inventories and cycle lengths below normal as much as possible by April 11 Ideal days in cycle should be seven days or below.
    April 12 - 25, 2014 Remain on an 11 day or shorter cycle.
    April 26 - May 21, 2014 Process tax returns to meet Refund OTFP PCD of May 21, 2014.
    May 22 - 31, 2014 Reach a 10 day BBTS Accomplished Cycle as quickly as practical.
    June 1 - December 31, 2014 Maintain a BBTS Accomplished Cycle of no more than 10 days.

    • OTFP 1040 series tax returns sorted as no-refund. Tax returns received on or before ≡ ≡ ≡ ≡ ≡ identified as no-refund. See IRM 3.30.123.6.4.5, Measuring OTFP PCD Accomplishment, should to the extent possible, be processed by May 28, 2014. Cycle goals do not apply.

  3. SCHEDULING CYCLE: All tax returns should be scheduled to meet the processing requirements noted above and throughout this IRM.

  4. REFUND TIMELINESS REMINDER: Refunds must be issued within 45 calendar days of the dates outlined in IRM 3.30.123.6.1.3 to avoid interest payments. However, to meet the customer service goals set forth in the Annual Business Plan, refund tax returns should be processed so that the refund is received by the taxpayer within 40 days of the estimated date on which the taxpayer mailed the tax return.

    Exception:

    An interest-free period of 180 days applies to an overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code. See IRM 20.2.4.7.6Manual Refunds

  5. CAMPUS PROGRAM COMPLETION DATES:

    • OTPF PCD (December Peak) - January 15, 2014 - Cycle 201403

    • Refund PCD (April Peak) - May 21, 2014 - Cycle 201421

    • Non-Refund Sort PCD - May 28, 2014 - Cycle 201422

    • OTFP PCD (June Peak) - July 16, 2014 - Cycle 201429

    • OTFP PCD (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.6.5  (01-01-2014)
International Form 1040 Series FP Tax Returns

  1. This subsection contains form/program specific information related to timely processing of International IMF FP tax returns.

3.30.123.6.5.1  (01-01-2014)
International FP Definition

  1. FP tax returns are returns that meet all of the following requirements:

    • Are received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the statutory due date, or

    • Are received after ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and have a postmark on or before the statutory due date

    • Are computed by the taxpayer as a balance due tax return

    • Are accompanied by a payment for exactly the computed balance due

  2. FP tax returns explicitly exclude:

    • Delinquently filed tax returns

    • Tax returns accompanied by a payment for an amount greater than the computed balance due

    • Tax returns with Form 14039, Identity Theft Affidavit attached

3.30.123.6.5.2  (01-01-2014)
Special Processing Considerations for International FP IMF Tax Returns

  1. Since the entity section of Full-Paid (FP) tax returns may contain change information from what IRS has on file, some FP tax returns are implied entity change requests. To the extent possible, FP tax returns should be processed so that entity updates can be made to the taxpayer’s account within 90 calendar days.

  2. Although Other Than Full-Paid (OTFP) tax returns take priority (to avoid paying refund interest), FP tax returns should be processed as fill in work, when possible, prior to the April peak.

    Exception:

    If a Form 14039, Identity Theft Affidavit, is attached to a FP tax return process upon receipt, do not shelf.

  3. As campus management ensures that staffing is sufficient and OTFP inventory levels are low going into the April peak, you should work to reduce FP inventory levels, to the extent practical, going into the April peak.

  4. Once April Peak processing is underway, FP tax returns may be shelved until Program Completion has been accomplished for Refund and No-Refund Sort tax returns. As those PCDs are accomplished and OTFP emphasis shifts to returning to a ten day or lower BBTS Accomplished Cycle, FP tax return processing should resume.

3.30.123.6.5.3  (01-01-2014)
PCD Definition for International FP IMF Tax Returns

  1. By Program Number, Program Completion will be considered accomplished when the cumulative Good Tape production (Function 950) is equal to or greater than 99.9 percent of the cumulative number of processable receipts received for that Program Number received by ≡ ≡ ≡ ≡ ≡ ≡ , so long as that Good Tape production is reached on or before the established PCD.

  2. Determine processable receipts by using the following formula for each PCD:

    • Function 110 (Receipts)

    • Minus Function 920 (Rejects) closing inventory

    • Minus Function 940 (Block Deletions) cumulative receipts

    • Minus Function 960 (Program Deletions) cumulative production

    Note:

    The following provides the data sources to be used in computing processable receipts.

    1. Function 110 cumulative volume for each counting period receipts come from the Function Volume Report within the Production Information and Monitoring System (PIMS).

    2. Function 940 cumulative receipts and Function 960 cumulative production volumes come from the Daily Production Report, PCC-22-40.

    3. Function 920 closing inventory and Function 950 cumulative volume comes from the Balance Forward Listing, PCD-03-44.

    Note:

    If using Function 180 (Batching Activities) cumulative production instead of Function 110, add Function 180 closing inventory (use zero if negative), minus Functions 920, 940, 960, and Function 970 (Reinputs) cumulative production. Function 970 volume comes from the Daily Production Report, PCC-22-40.

3.30.123.6.5.4  (05-16-2011)
Measuring FP - PCD Accomplishment

  1. When evaluating the Program Completion Accomplishment for FP tax returns for the July PCD, there are no categories of tax returns excluded from the volume of processable receipts. Returns that fallout to BOBs and ERS are considered processable and must be corrected prior to PCD. BOB and Error inventory should be evaluated to determine the daily production needed to clear the inventory and meet PCD.

  2. Management at the Headquarters and campus levels must diligently monitor the volume of FP tax returns being processed starting in mid-April through May and June to ensure that the number of tax returns that need to be transcribed per day to Accomplish Program Completion does not become unreasonably large.

  3. Similarly, Campus Management must monitor the processing of Rejects to ensure timely processing and that guidelines for over aged are met.

3.30.123.6.5.5  (01-01-2014)
International Form 1040 Series FP (AUSPC Only) (Program 46220) Processing Specifications

  1. STATUTORY DUE DATES for Form 1040 and Form 1040-NR:

    • April 15

      Note:

      If an electronically filed tax return has been rejected by the IRS and the taxpayer files a paper tax return; the paper tax return will be considered timely filed if postmarked by the later of the date of the tax return or ten calendar days after the date of the notification that the electronic submission was rejected. See IRM 3.30.123.12.2, Electronic Postmark and Return Due Date.

    • June 15 - Form 1040-NR (Non-Effectively Connected Income) original due date.

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. SCHEDULING CYCLE: All tax returns should be scheduled to meet the processing requirements noted above and throughout this IRM.

  3. CAMPUS PROGRAM COMPLETION DATES:

    • Full-Paid PCD (April Peak) - July 9, 2014 - Cycle 201428

    • Full-Paid PCD (June Peak) - September 10, 2014 - Cycle 201437

3.30.123.6.6  (01-01-2014)
International Form 1040 Series Tax Returns Delayed for ITIN Application Processing

  1. This subsection contains form/program specific information related to timely processing of international IMF tax returns. Form W-7 or Form W-7(SP), Application for IRS Individual Taxpayer Identification Number (ITIN), must be complete before an ITIN can be assigned to make the tax return processable. See IRM 3.30.123.6.10, Form W-7 and W-7(SP) Processing Specifications (AUSPC).

3.30.123.6.6.1  (01-01-2014)
International Form 1040 Series Tax Returns Delayed for ITIN Application Processing Definition

  1. All International Form 1040 Series tax returns received with Form W-7 or Form W-7(SP), Application for IRS Individual Taxpayer Identification Number (ITIN), cannot be processed until the ITIN is assigned.

  2. International Form 1040 Series Delayed for ITIN Application Processing include both Full-Paid and Other Than Full-Paid tax returns.

3.30.123.6.6.2  (01-01-2014)
Special Processing Considerations for International Form 1040 Series Tax Returns Delayed for ITIN Application Processing

  1. International Form 1040 Series tax returns received with Form W-7 and Form W-7(SP), Application for IRS Individual Taxpayer Identification Number (ITIN), are presumed not to contain all information required for their processing, as they lack the ITIN which the applicant has requested.

  2. The ITIN which the applicant has requested cannot be included on the tax return until the requested ITIN has been assigned, or cannot be excluded from the tax return until the ITIN application has been rejected. Thus, the ITIN application must be processed to completion before the accompanying tax return can be considered processable. Until the application has been processed to completion, the accompanying tax return must remain with the application.

  3. Care must be taken to preserve the integrity of the IRS Received Date of the tax returns.

  4. Similarly, care must be taken to preserve the integrity of the Return Processable Date (RPD) on the accompanying tax return.

  5. Once the application has been processed to completion (and the RPD has been applied when appropriate, the accompanying tax return can be released for pipeline processing.

  6. Do not input the transaction to prevent Delinquency Notices (TC 599, CC 18) when the Primary TIN is an ITIN or Temporary Social Security Number (SSN).

3.30.123.6.6.3  (01-01-2014)
PCD Definition for International Form 1040 Series Tax Returns Delayed for ITIN Application Processing

  1. The traditional approaches for measuring program completion for various tax returns do not apply well to this group of tax returns. Most of the traditional approaches assume that the IRS Received Date is roughly the date on which tax return processing can begin. Since this is not the case with tax returns delayed for ITIN application processing, a definition for accomplishing program completion that captures the essence of completing tax return processing in a reasonable amount of time after the tax return processing can begin, is better than the traditional definitions.

  2. By Program Number, Program Completion will be considered accomplished when the cumulative volumes produced (in this case, from System Operations) in Function 610 is equal to, or greater than 100 percent of the cumulative number of receipts for that Program Number batched ten working days prior to the established PCD.

3.30.123.6.6.4  (01-01-2014)
Measuring International Form 1040 Series Tax Returns Delayed for ITIN Application Processing PCD Accomplishment

  1. When evaluating the PCD Accomplishment for 1040 series Delayed for ITIN Application Processing tax returns for the May PCD for OTFP tax returns, there are no categories of tax returns excluded from the volume of batched receipts. Since the point of comparison is Function 610 rather than Function 950, no consideration for volumes of tax returns that are in inventory in ERS or Rejects needs to be made.

  2. When evaluating the PCD Accomplishment for 1040 series Delayed for ITIN Application Processing tax returns for the July PCD for FP tax returns, there are no categories of tax returns excluded from the volume of batched receipts. Since the point of comparison is Function 610 rather than Function 950, no consideration for volumes of tax returns that are in inventory in ERS or Rejects needs to be made.

  3. Definition of International OTFP. See IRM 3.30.123.6.4.2, International OTFP Definition. Definition of International FP. See IRM 3.30.123.6.5.1, International FP Definition.

3.30.123.6.6.5  (01-01-2014)
International Form 1040 Series Tax Returns Delayed for ITIN Application (Program 46170) Processing Specifications

  1. STATUTORY DUE DATE for Form 1040 (and conversions):

    • April 15

    • June 15 - Form 1040-NR (Non-Effectively Connected Income) original due date

    • October 15 - (Form 4868 filed in April will state "ITIN TO BE REQUESTED" and Form 6401 will be attached to the tax return since no TC could post in April)

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as BBTS Accomplished Cycle. IRM 3.30.123.4.2, BBTS Accomplished Cycle - A Day Counter

    • Cycles should be maintained at a level of 10 working days or less from Batching to Function 610 cycle.

  3. SCHEDULING CYCLE: All tax returns should be scheduled to meet the processing requirements noted above and throughout this IRM.

  4. CAMPUS PROGRAM COMPLETION DATES:

    • OTFP PCD (December Peak) - January 15, 2014 - Cycle 201403

    • Refund PCD (April Peak) - May 21, 2014 - Cycle 201421

    • OTFP PCD (June Peak) - July 9, 2014 - Cycle 201429

    • Full-Paid PCD (June Peak) - September 10, 2014 - Cycle 201437

    • OTFP PCD (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.6.7  (01-01-2014)
Form 1040 Series Extensions - Form 4868 (AUSPC, FSPC, KCSPC Only) (Programs 44700 and 45500) and Form 2350 (AUSPC Only) (Program 45500) Processing Specifications

  1. STATUTORY DUE DATES for Form 4868 (Form 4868 is used to request an automatic 6 month extension of time to file Form 1040, Form 1040-A, Form 1040-EZ, Form 1040-NR or Form 1040-NR-EZ):

    • April 15

    • June 15 -Taxpayers abroad (box 8 checked) and taxpayer filing Form 1040-NR and Form 1040-NR-EZ with income not effectively connected (box 9 checked)

    • October 15 - International tax returns for taxpayers abroad requesting an additional non-automatic two month extension of time to file

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

    Note:

    Form 4868 is due on the same date as the applicable tax return. See IRM 3.30.123.6.1.6, Domestic Form 1040 Series OTFP Processing Specifications (AUSPC, FSPC, KCSPC), IRM 3.30.123.6.2.5, Domestic Form 1040 Series FP Processing Specifications (AUSPC, FSPC, KCSPC), IRM 3.30.123.6.4.6, International Form 1040 Series OTFP Processing Specifications (AUSPC) and IRM 3.30.123.6.5.5, International Form 1040 Series FP Processing Specifications (AUSPC).

  2. STATUTORY DUE DATE for Form 2350, Application for Extension of Time to File U.S. Income Tax Return, (This form is used to request an extension of time to file for U.S. citizens and resident aliens abroad who expect to qualify for special tax treatment):

    • June 15

    • October 15

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  3. Process requests for all Extensions of Time to File using the following guidelines:

    1. Processing of extensions of time to file domestic tax returns must be completed within 16 calendar days of the initial receipt day (counting the day it is received). Processing of extensions of time to file International tax returns must be completed within six calendar days of the initial receipt day.

    2. If processing must be delayed during peak periods, all extensions MUST be processed during, or before the cycle in which the first delinquent, current year tax returns are processed.

    3. These extensions may be related to the "delinquent" tax returns and the TC 460 must be posted in the same cycle or before the tax returns post, so that penalty and interest will not be assessed and cause erroneous notices to be sent to taxpayers.

    4. In the case of denied extensions, notification of the denial must be initiated within ten calendar days of the denial determination in Code and Edit.

  4. The requirements for Extension processing can be found by referring to IRM 3.11.212, Applications for Extension of Time to File, owned by SE:W:CAS:SP:PPB:IMF.

3.30.123.6.8  (01-01-2014)
Form 1040-ES, Estimated Tax for Individuals (Program 44200) Processing Specifications

  1. STATUTORY DUE DATE for Form 1040-ES:

    • 4th Quarter, Tax Year 2013 - January 15, 2014

    • 1st Quarter, Tax Year 2014 - April 15, 2014

    • 2nd Quarter, Tax Year 2014 - June 15, 2014

    • 3rd Quarter, Tax Year 2014 - September 15, 2014

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES:

    • 1 day (deposit), maximum three days during peak

  3. CAMPUS PROGRAM COMPLETION DATES:

    • 4th Quarter, January 21, 2014 - Cycle 201404

    • 1st Quarter, April 18, 2014 - Cycle 201417

    • 2nd Quarter, June 19, 2014 - Cycle 201426

    • 3rd Quarter, September 18, 2014 - Cycle 201439

  4. The requirements for Lockbox processing are owned by SE:W:CAS:SP:ATP:LPO.

3.30.123.6.9  (01-01-2014)
Form 1040-X, Amended U.S. Individual Income Tax Return and CP 08, CP 09, and CP 27 (AUSPC, FSPC, KCSPC Only) (Programs 4440X, 4445X and 4000X) Processing Specifications

  1. STATUTORY DUE DATE for Form 1040-X and CP 08, CP 09, CP 27:

    • N/A (Refer to IRM 25.6.1, Statute of Limitations Processes and Procedures).

  2. CYCLES:

    • 12 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X.

    • 12 day time frame will be expanded to 20 days during peak period. Peak period is defined as March 1 through June 30.

    Note:

    Do NOT shelve under any circumstances.

  3. CAMPUS PROGRAM COMPLETION DATES:

    • N/A

  4. The Batch/Block Tracking System (BBTS) is used to track Amended inventories for Submission Processing.

  5. The requirements for Form 1040-X and CP 08, CP 09, CP 27 received and processed by Submission Processing, refer to IRM 3.11.6, Data Processing Tax Adjustments, owned by SE:W:CAS:SP:PPB:IMF. For processing procedures of the claims routed to Accounts Management for processing, either from Receipt and Control or another area, refer to IRM 21.5, Account Resolution and IRM 21.6, Individual Tax Returns, owned by SE:W:CAS:AM:PPG:I.

3.30.123.6.10  (01-01-2014)
Form W-7 and Form W-7(SP), Application for IRS Individual Taxpayer Identification Number (AUSPC Only) (Programs 33250 and 33350) Processing Specifications

  1. Program 33250- Form W-7 or Form W-7(SP), received without income tax returns must be processed through the ITIN Real-Time-System (RTS) on a 16 day cycle from IRS Received Date to Input (Function 380) in ITIN RTS.

  2. Program 33350- Form W-7 or Form W-7(SP) , received with income tax returns must be processed through the ITIN Real-Time-System (RTS) on an 11 day cycle from IRS Received Date to Input (Function 380) in ITIN RTS.

  3. The requirements for processing Form W-7 or Form W-7(SP) can be found by referring to IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS), owned by SE:W:CAS:SP:SPB:I.

3.30.123.6.11  (01-01-2014)
Form W-7A, Application for IRS Adoptions Taxpayer Identification Number (AUSPC Only) (Program 33060) Processing Specifications

  1. DUE DATE for Form W-7A:

    • N/A

  2. CYCLES:

    • 3 days from Entity delivering to Batching for processing through ISRP (Non-Peak)

    • 6 days (Peak - April 15 through May 15)

  3. CAMPUS PROGRAM COMPLETION DATES:

    • N/A

  4. The requirements for processing Form W-7A can be found by referring to IRM 3.13.40, Application for Taxpayer Identification Number for pending U.S. Adoptions, owned by SE:W:CAS:SP:PPB:PPS.

3.30.123.7  (01-01-2014)
Processing Timeliness Criteria for BMF Domestic Income Tax Returns, Trust Estimated Payment Document, Extension Requests and BMF International Income Tax Returns

  1. This subsection contains form/program specific information related to timely processing of BMF tax returns.

  2. The requirements for BMF Domestic paper processing can be found by referring to IRM 3.11, Returns and Documents Analysis, owned by SE:W:CAS:SP:PPB:BMF.

  3. Form 1041-ES is processed by Lockbox. Correction procedures can be found by referring to IRM 3.12.10, Revenue Receipts, owned by SE:W:CAS:SP:ATP:SCAD.

  4. The requirements for Extension processing can be found by referring to IRM 3.11.212, Applications for Extension of Time to File and IRM 3.12.212, Applications for Extension of Time to File Tax Returns, owned by SE:W:CAS:SP:PPB:IMF.

  5. The requirement for BMF International paper processing can be found by referring to IRM 3.21, International Returns and Documents Analysis, owned by SE:W:CAS:SP:PPB:IMF.

  6. The procedures for correcting BMF documents can be found by referring to IRM 3.12, Error Resolution, owned by SE:W:CAS:SP:PPB:BMF.

3.30.123.7.1  (01-01-2011)
BMF Domestic and International Tax Returns

  1. This subsection contains form/program specific information related to the timely process of BMF Domestic tax returns.

  2. Procedures for BMF extension forms follow the BMF tax returns.

  3. BMF International tax return processing procedures. See IRM 3.30.123.7.12, PCD for Form 1042, Form 1042-T, Form 1042-S, Form 3520, Form 3520-A, Form 8804, Form 8805, Form 8813, Form 8288 and Form 8288-A.

3.30.123.7.1.1  (01-01-2014)
Special Processing Considerations for BMF Domestic and International Refund Tax Returns

  1. All refund tax returns must be processed on a 6 day Expedite Cycle.

  2. To the extent possible, to avoid refund interest paid, refund tax returns are to be processed so the refund is issued to the taxpayer within 45 calendar days or the later of:

    1. The return due date (determined without regard to any extension of time for filing the return).

    2. The return received date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return).

    3. The date the return was received in processable form.

    Exception:

    An interest-free period of 180 days applies to an overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code. See IRM 20.2.4.7.6Manual Refunds

  3. Campus management must ensure that staffing is sufficient and inventory levels are low enough going into the peak period(s) to meet the Refund PCD designated for the particular tax return.

  4. Proper inventory production and control must be in place to ensure that in addition to the emphasis on the Refund PCD, appropriate emphasis is also placed on processing approved extension forms prior to processing refund tax returns received after the end of the due date counting period. See IRM 3.30.123.7.11, PCD for Extensions Form 4768, Form 5558, Form 7004, Form 7004 MeF, Form 8868, Form 8868 MeF and Form 8892 Processing Specifications.

3.30.123.7.1.2  (01-01-2014)
Program Completion Date (PCD) Definition for BMF Domestic and International Non-Refund Tax Returns

  1. By Program Number, Program Completion will be considered accomplished when the cumulative Good Tape (Function 950) is equal to or greater than the cumulative number of processable receipts received for that Program Number by the end of the counting period ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ unless specified differently under form type.

  2. Determine processable receipts by using the following formula for each PCD:

    • Function 110 (Receipts)

    • Minus Function 920 (Rejects) closing inventory

    • Minus Function 940 (Block Deletions) cumulative receipts

    • Minus Function 960 (Program Deletions) cumulative production

    Note:

    The following provides the data sources to be used in computing processable receipts.

    1. Function 110 cumulative volume for each counting period receipts come from the Function Volume Report within the Production Information and Monitoring System (PIMS).

    2. Function 940 cumulative receipts and Function 960 cumulative production volumes come from the Daily Production Report, PCC-22-40.

    3. Function 920 closing inventory and Function 950 cumulative volume comes from the Balance Forward Listing, PCD-03-44.

    Note:

    If using Function 180 (Batching Activities) cumulative production instead of Function 110, add Function 180 closing inventory (use zero if negative) minus Function 920, 940,960, and Function 970 (Reinputs) cumulative production. Function 970 volume comes form the Daily Production Report, PCC-22-40.

  3. Each Submission Processing Center can use its Daily Production Reports (DPR), Batch Profile Report (BPR), Error Resolution System (ERS) Reports and GMF-06-40 (report of outstanding BOBs) to monitor the processing of returns. Special emphasis should be given to utilizing the SCCF Aged List and other SCCF Extracts (Extracts can be ordered by Accounting Data Control team using SCFRQ) to determine if all documents have been processed through ISRP, SCRIPS, BOBs and ERS.

  4. For any tax returns received within the specified counting period or delinquent filed tax returns which cannot be processed by the PCD as established within this IRM, TC 599 Closing Code (CC) 18 must be input. If the filer is a subsidiary on a consolidated Form 1120 return, input TC 590 CC 14. This includes block deletes in BOBs and Rejects.

    1. Processing procedures for block deletes and BOBs can be found by referring to IRM 3.40.37, General Instructions.

    2. Processing procedures for Rejects can be found by referring to IRM 3.12.38, BMF General Instructions.

  5. Input of a TC 599 will not aid in meeting PCD. However, TC 599 should be used to satisfy the module for non-remittance tax returns in BOBs, Rejects, and Code and Edit status to prevent erroneous tax return delinquency notices. TC 599 should be input no later than three weeks prior to the delinquency check. Due to various actions that are impacted by the processing of the actual tax return (e.g., trust fund activity) input of a TC 599 does not preclude the campus from continuing the processing of the tax return. All tax returns that were not processed prior to PCD (e.g., unlocatable BOBs, ERS unworkable suspense, etc.,) must be located and processed within 45 calendar days after PCD.

  6. Since the posting of a TC 610 will suppress delinquency notices, a TC 599 should only be input on non-remittance tax returns.

  7. If for any reason, the campus identifies an "orphan" or unprocessed block, a TC 599 CC 18, must be input three weeks prior to the delinquency check. Every effort should be made to locate these tax returns and process them within 45 calendar days after PCD.

  8. Guidelines for preparing Transmission Spreadsheet for the Weekly BMF Returns Processing Report can be found by referring to IRM 3.30.124, Campus Monitoring Reports.

  9. Timely filed current year/quarterly tax returns (other than employment tax returns) can be leveled one week prior to the due date through the PCD (e.g., Form 1120-S for tax period 201406 with a due date of September 15 can be leveled beginning one week prior to the due date on September 8). Timely filed current calendar year and all quarterly employment tax returns may be leveled two weeks prior to the due date through the PCD (e.g., Form 941 for tax period 201403, due April 30, can be leveled beginning two weeks prior to the due date on April 16). All other tax returns must stay on cycle and PCD must be met. Requests for an exception to level must be elevated to management at the Headquarters level for approval.

3.30.123.7.1.3  (01-01-2014)
Processing Forms on an "Expedite" Cycle

  1. At the campuses discretion, all BMF tax returns may be processed using an 11 day processing cycle with the exception of Form 720, Quarterly Federal Excise Tax Return, 944 series and all refund tax returns.

  2. The tax forms listed below must be processed on a 6 day Expedite Cycle, counting from IRS received date through Tape Edit Processing (TEP) in no more than five additional days.

    All BMF Refund Tax Returns
    • Form 720 (Refund and Non-Refund).

    • Form 944, Form 944 (PR), Form 944 (SP), Form 944-SS (Refund and Non-Refund) - Received after January 1 and through PCD.




    Exception:
    • Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, 6 day cycle.

    • KITA/KIA, Original tax returns, 3 day cycle.

  3. The forms and CP notices listed below must be routed to the proper area expeditiously to be processed. For destination and additional routing criteria can be found by referring to IRM 3.10.72, Receiving, Extracting, and Sorting.

    Form 514-B Tax Transfer Schedule
    Form 1331 and Form 1331-B Notice of Adjustment
    Form 2158 Credit Transfer Voucher
    Form 2287 (CG) Notice of Check Not Accepted by Bank
    Form 2424 Account Adjustment Voucher
    Form 2650 TDA-TDI Transfer
    Form 3177 Notice of Action for Entry on Master File
    Form 3245 Posting Voucher-Refund Cancellation or Repayment
    Form 3413 Transcription List (Account Transfer-In)
    Form 3753 Manual Refund Posting Voucher
    Form 3809 Miscellaneous Adjustment Voucher
    Form 4338 Information or Certified Transcript Request
    Form 4830 IDRS Multi-Purpose Posting Document
    Form 8485 Assessment Adjustment Case Record
    Form 12230 Expedite Processing Million Dollar Manual Refund
    Form 12857 Refund Transfer Posting Voucher
    Form 13133 Expedite Processing Cycle
    CP 54 Return Posts to Invalid Segment (IMF)
    CP 108, CP 205, CP 403 and CP 406  
    CP 59, CP 759, CP 259, CP 959 and CP 518 Request for Information about Tax Return
  4. Any prior year tax return with Form 13133 , attached that is submitted by the Examination or EP/EO function must be processed at a maximum 6 day Expedite Cycle.

  5. All payment posting vouchers, such as Form 809, Receipt for Payment of Taxes, Form 3244 and Form 3244-A, Payment Posting Voucher, Form 3552, Prompt Assessment Billing Assembly and Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax must be expedited.

  6. Form 5248, Transfer Request , requests for account reactivation from retention should be processed within 12 work days.

3.30.123.7.1.4  (01-01-2014)
Measuring PCD Accomplishment

  1. The following processes must be maintained when implementing the 11 day processing cycle:

    • 45-day interest free period for refund tax returns must be met, and

    • PCD MUST BE MET, and

    • Batching must be timely ("timely" is defined as no more than two work days from the IRS Received Date).

    Exception:

    An interest-free period of 180 days applies to an overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code. See IRM 20.2.4.7.6Manual Refunds

  2. When evaluating the PCD Accomplishment for Non-Refund BMF tax returns, no categories of tax returns are excluded from cumulative number of processable receipts received by the end of the counting period.

3.30.123.7.2  (01-01-2014)
PCD for Form 706, Form 706-GS(D), Form 706-GS(T) and Form 709

  1. This subsection contains form/program specific information related to timely processing of Estate and Gift Tax Returns.

  2. Procedures for processing these forms can be found by referring to IRM 3.11.106, Estate and Gift Tax Returns, owned by SE:W:CAS:SP:PPB:BMF.

3.30.123.7.2.1  (01-01-2014)
Form 706, U.S. Estate Tax Return (CSPC Only) (Program 12400) Processing Specifications

  1. STATUTORY DUE DATE for Form 706:

    • 9 months after the date of death.

      Note:

      An approved extension extends the filing period for six months


  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 16 days or lower and should not exceed 20, BUT PCD MUST BE MET

  3. CAMPUS PROGRAM COMPLETION DATES:

    • Refund (December 2012 filers) - January 22, 2014 - Cycle 201404

    • Non-Refund (December 2012 filers) - February 5, 2014 - Cycle 201406

    • Monthly tax returns that are filed for January 2014 and later are to be completed as described. See IRM 3.30.123.2.1, PCD Definitions.

  4. OTHER REQUIREMENTS:

    1. All non-remittance tax returns that are in BOBs, Rejects, or Code and Edit status need to have a TC 599 CC 18 input three weeks prior to the delinquency check.

    2. Continue processing once you have input the transaction to suppress the delinquency notice.

3.30.123.7.2.2  (01-01-2014)
Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions (CSPC Only) (Program 12400) Processing Specifications

  1. STATUTORY DUE DATE for Form 706-GS(D):

    • April 15

    • October 15 (Extended due date)

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 16 days or lower and should not exceed 20, BUT PCD MUST BE MET

  3. CAMPUS PROGRAM COMPLETION DATES:

    • Refund (April Peak) - May 7, 2014 - Cycle 201419

    • Non-Refund (April Peak) - May 21, 2014 - Cycle 201421

    • Refund (October Peak) - November 5, 2014 - Cycle 201445

    • Non-Refund (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.7.2.3  (01-01-2014)
Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations (CSPC Only) (Program 12400) Processing Specifications

  1. STATUTORY DUE DATE for Form 706-GS(T):

    • April 15

    • October 15 (Extended due date)

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 16 days or lower and should not exceed 20, BUT PCD MUST BE MET

  3. CAMPUS PROGRAM COMPLETION DATES:

    • Refund (April Peak) - May 7, 2014 - Cycle 201419

    • Non-Refund (April Peak) - May 21, 2014 - Cycle 201421

    • Refund (October Peak) - November 5, 2014 - Cycle 201445

    • Non-Refund (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.7.2.4  (01-01-2014)
Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return (CSPC Only) (Program 12410) Processing Specifications

  1. STATUTORY DUE DATE for Form 709:

    • April 15

    • October 15 (Extended due date)

      Note:

      See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 16 days or lower and should not exceed 20, BUT PCD MUST BE MET

  3. CAMPUS PROGRAM COMPLETION DATES:

    • Refund (April Peak) - May 7, 2014 - Cycle 201409

    • Non-Refund (April Peak) - May 21, 2014 - Cycle 201421

    • Refund (October Peak) - November 5, 2014 - Cycle 201445

    • Non-Refund (October Peak) - November 19, 2014 - Cycle 201447

3.30.123.7.3  (01-01-2014)
PCD for Form 720, Form 730, Form 2290 Series and Form 11-C

  1. This subsection contains form/program specific information related to timely processing of Excise Tax Returns.

  2. Procedures for processing these forms can be found by referring to IRM 3.11.23, Excise Tax Returns, owned by SE:W:CAS:SP:PPB:BMF.

  3. There are no valid extensions for these forms.

  4. Forms with the designation "FR" are for domestic tax returns for U.S. residents who speak French.

  5. Forms with the designation "SP" are for domestic tax returns for U.S. residents who speak Spanish.

3.30.123.7.3.1  (01-01-2014)
Form 720, Quarterly Federal Excise Tax Return (CSPC Only) (Program 11800) Processing Specifications

  1. STATUTORY DUE DATE for Form 720:

    • 4th Quarter - January 31

    • 1st Quarter - April 30

    • 2nd Quarter - July 31

    • 3rd Quarter - October 31

      Note:

      See Holiday or Weekend Impact, IRM 3.30.123.2.2

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Form 720, excluding taxes for the Affordable Care Act (ACA) Number of Days in Cycle should normally be 6 days or lower.

      Note:

      Batched under programs 11800, 11801, and 11802

    • Form 720 reporting ONLY ACA (Patient Centered Outcome Research (PCOR) or Medical Device) Number of Days in Cycle should be normally be 11 days or lower.

      Note:

      Batched under program 11804 and 11809

  3. Form 720 cutoff cycles to be included in Certifications:

    • 4th Quarter 2013 - 201408 ECC-MTB Posting Cycle (TXPD 201312)

    • 1st Quarter 2014 - 201421 ECC-MTB Posting Cycle (TXPD 201403)

    • 2nd Quarter 2014 - 201434 ECC-MTB Posting Cycle (TXPD 201406)

    • 3rd Quarter 2014 - 201447 ECC-MTB Posting Cycle (TXPD 201409)

  4. CAMPUS PROGRAM COMPLETION DATES:

    Tax Period Non-ACA PCD ACA Only PCD
    4th Quarter February 19, 2014 - 201408 March 19, 2014 - 201412
    1st Quarter May 21, 2014 - 201421 June 18, 2014 - 201425
    2nd Quarter August 20, 2014 - 201434 September 17, 2014 - 201438
    3rd Quarter November 19, 2014 - 201447 December 17, 2014 - 201451

  5. OTHER REQUIREMENTS:

    1. All non-remittance tax returns that are in BOBs, Rejects, or Code and Edit status need to have a TC 599 CC 18 input three weeks prior to the Delinquency Check. Continue processing once you have input the transaction to suppress the delinquency notice.

    2. The PCD is the same for Refunds and Non-Refunds, but Refunds should be worked prior to the Non-Refunds to ensure the interest free period is met.

3.30.123.7.3.2  (01-01-2014)
Form 730, Monthly Tax Return for Wagers (CSPC Only) (Program 12700) Processing Specifications

  1. STATUTORY DUE DATE for Form 730:

    • By the last day of the month following the month that the wagers were reported.

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 16 days or lower.

  3. CAMPUS PROGRAM COMPLETION DATES:

    Note:

    See Holiday or Weekend Impact, IRM 3.30.123.2.2

    End of Tax Year Tax Return STATUTORY DUE DATE PCD
    October 31, 2013 November 30, 2013 January 8, 2014 - 201402
    November 30, 2013 December 31, 2013 February 5, 2014 - 201406
    December 31, 2013 January 31, 2014 March 5, 2014 - 201410
    January 31, 2014 February 28, 2014 April 2, 2014 - 201414
    February 28, 2014 March 31, 2014 May 7, 2014 - 201419
    March 31, 2014 April 30, 2014 June 4, 2014 - 201423
    April 30, 2014 May 31, 2014 July 9, 2014 - 201428
    May 31, 2014 June 30, 2014 August 6, 2014 - 201432
    June 30, 2014 July 31, 2014 September 3, 2014 - 201436
    July 31, 2014 August 31, 2014 October 8, 2014 - 201441
    August 31, 2014 September 30, 2014 November 5, 2014 - 201445
    September 30, 2014 October 31, 2014 December 3, 2014 - 201449

  4. OTHER REQUIREMENTS:

    1. All non-remittance tax returns that are in BOBs, Rejects, or Code and Edit status need to have a TC 599 CC 18 input three weeks prior to the Delinquency Check. Continue processing once you have input the transaction to suppress the delinquency notice.

    2. Check the schedule.

  5. Expedite all Form 730 for prior months that are claiming an overpayment on Line 5, or have a Form 8849, Claim for Refund of Excise Taxes , Schedule 6 attached when identified in Code and Edit.

3.30.123.7.3.3  (01-01-2014)
Form 2290, Form 2290(FR), Form 2290(SP), Heavy Highway Vehicle Use Tax Return (CSPC Only) (Program 12300) Processing Specifications

  1. STATUTORY DUE DATES for Form 2290, Form 2290(FR) and Form 2290(SP):

    • First Use, or when first determined that the vehicle will exceed 5,000 miles (7,500 for agricultural vehicles), will have the due date on the last day of the month following the month of the first taxable use (vehicle first used in February - tax return due March 31).

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 11 days or lower.

  3. CAMPUS PROGRAM COMPLETION DATES:

    • (August Peak) -September 24, 2014 - Cycle 201439

  4. OTHER REQUIREMENTS:

    1. All non-remittance tax returns in BOBs, Rejects, or Code and Edit status need to have a TC 599 CC 18 input three weeks prior the delinquency check. Continue processing once you have input the transaction to suppress the delinquency notice.

3.30.123.7.3.4  (01-01-2014)
Form 11-C, Occupational Tax and Registration Return for Wagering (CSPC Only) (Program 12700) Processing Specifications

  1. DUE DATE for Form 11-C:

    • July 1 of each year or date business commences

  2. CYCLES: Cycles are defined as Operating Number of Days in Cycle. IRM 3.30.123.4.1, Operating Number of Days in Cycle - A Day Counter.

    • Number of Days in Cycle should normally be 16 days or lower.

  3. CAMPUS PROGRAM COMPLETION DATES:

    • July Filers - August 6, 2014 - Cycle 201432

    • Monthly tax returns that are filed for August 2014 and later are to be completed as described. See IRM 3.30.123.2.1, PCD Definitions.

  4. OTHER REQUIREMENTS:

    1. All non-remittance tax returns in BOBs, Rejects, or Code and Edit status need to have a TC 599 CC 18 input three weeks prior to the delinquency check. Continue processing once you have input the transaction to suppress the delinquency notice.


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