Part 3. Submission Processing

Chapter 42. Electronic Tax Administration

Section 5. IRS of Individual Income Tax Returns (Cont. 1)

3.42.5  IRS of Individual Income Tax Returns (Cont. 1)

3.42.5.15 
Transmission to the IRS

3.42.5.15.4  (10-01-2010)
EMS Virus Detection Process and Procedures

  1. The virus detection feature will automatically scan every electronic transmission. If a virus is detected, the FEPS will quarantine the file for at least 7 days, and immediately put a transmission Suspend Indicator on the Trading Partner's (TP) profile.

  2. The number of days to quarantine the file can be changed if policy dictates or if it is warranted.

  3. While online, the TP will see "SUSPENDED" , but will be permitted to pick up Acknowledgement Files.

  4. The FEPS will create a Communications Error Message in a Communications Error Acknowledgement File, which will be in XML format, with the message VIRUS DETECTED and the name of the virus. This message can be viewed using the EMS e-help Desk (HD) Facility.

  5. The FEPS will also send an alert to the Systems Administrator (SA).

  6. The SA will e-mail the e-help Desk to advise of the VIRUS DETECTED status.

  7. The next time the TP logs into the system, the TP will receive this ACK file, but will not be able to transmit. However, the TP can continue to pick up all ACK Files. The FEPS will set the TP transmission status VIRUS DETECTED, so that when a TP calls again, the e-help Desk staff can look and see the status and can inform the TP.

  8. The e-help Desk staff should complete the following actions:

    1. Call the TP to inform of the status and suggest looking first at any binary file attachments for the virus.

    2. Notify the manager and SA immediately, if suspected that the TP is a hacker.

    3. Advise the TP he/she must remove infected data and call the e-help Desk when ready to re-transmit.

    4. Remove the Suspend Indicator via Trading Partner Maintenance in the EMS e-help Desk Facility, once the TP calls back indicating when ready. TP can re-transmit the file and begin transmitting new files. If another virus is detected, everything above will happen again.

    5. Generate a report of suspended TPs through the EMS e-help Desk Facility.

    Note:

    Policies and procedures are being developed if this happens repeatedly.

3.42.5.15.5  (10-01-2010)
Communications, Transmission and Software Problems

  1. When transmitters cannot log onto the system, verify the URL, ETIN and EFIN being used for transmission.

  2. The following shows communication validation and error messages the transmitters may receive after logon:

    • A VIRUS <Virus Name> WAS DETECTED IN THIS FILE-- The FEPS has detected a virus in a transmission file and will quarantine and not process the file. The TP will be temporarily suspended. The TP must clean up the file and call their appropriate e-help Desk for permission to transmit. Please note that this error acknowledgement is in XML format.
      Below is the format for the error acknowledgement that is returned to the TP when a virus is detected in the transmission. All TPs receive the XML format acknowledgement, even if the transmission was sent using a different IRS approved format. Note that the second line of the file, the Content-Description contains a plain English description of the problem and an understanding of XML is not required to interpret the message. The shaded areas contain the GTX key, a timestamp, and the virus name. These values vary for each returned acknowledgement. The remainder of the message is constant.
      MIME - Version: 1.0
      Content - Description: Notification that transmission file
      T200703211345.0100was rejected because it contained a virus
      Content - Type: text/xml; charset=UTF-8
      <?xml version="1.0" in coding="UTF-8" ?>
      <TransmissionAcknowledgement>
      <AcknowledgementTimestamp>2007-12-13T12:05:22-
      05:00</AcknoweldgementTimestamp>
      <TransmissionStatus>R</TransmissionStatus>
      <Errors errorCount="1" >
      <Error errorId="1" >
      <ErrorCategory>Unsupported</ErrorCatgory>
      <ErrorMessage><!CDATA[A VIRUS(virus name)WAS
      DETECTED IN
      THIS FILE] ]></ErrorMessage>
      <RuleNumber>T00=009</RuleNumber>
      <Severity>Reject and Stop</Severity>
      </Error>
      </Errors>
      <GTXKey>T2007003211345 .0100</GTXKey>
      </TransmissionAcknoweldgement>

    • "ACK COUNT IN TRANSMISSION RECAP RECORD DOES NOT MATCH THE COUNT OF ACKS RECEIVED" -- The FEPS will reject the entire transmission for State ACKS, if the number of acknowledgements ‘inner envelopes’ does not match the count in Field 0030 of the ‘outer envelope’ RECAP record. Applicable to State Acknowledgement Transmissions Only.

    • "ADDITIONAL TAX DATA AFTER RECAP" -- The FEPS will reject the entire transmission when data exists after the RECAP record.

    • "EFS IS BUSY. WAIT AT LEAST 10 MINUTES, THEN RETRY" -- The FEPS will reject the entire transmission if the FEPS is unresponsive.

    • "EFS IS CURRENTLY UNAVAILABLE. ADDITIONAL INFORMATION MAY BE AVAILABLE ON IRS Quick Alerts" –- The FEPS will reject the entire transmission if the FEPS is down because of scheduled downtime or for other planned reasons.

    • "ETIN IN INNER ENVELOPE AT RECORD nnnnnn NOT VALID" -- The FEPS will reject the entire transmission if the ETIN in positions 84-88 of the TRANA record does not match a valid ETIN in the TP profile database. Applicable to State Acknowledgement Transmissions Only.

    • "FIRST RECORD WITHIN INNER ENVELOPE MUST BE ACK KEY AT RECORD nnnnnn" -- The FEPS will reject the entire transmission if there is no ACK key record as the first record within an inner envelope. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID DCN VALUE DETECTED WITHIN ACK KEY AT RECORD <n>" -- The return DCN in Field 0090 of the ACK Key record is not present and the first 2 digits are not zeros. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID ETIN MISMATCH IN INNER TRANA RECORD AND ACK KEY RECORD AT RECORD <n>" -- The ETIN in Field 0060 of the inner TRANA record does not match the ETIN in the first five digits of Field 0030 of the ACK Key record. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID FORM FORMAT BEGINNING AT RECORD n" -- For ETD transmissions, the FEPS will reject the entire transmission when a form does not begin with a FRM record (valid Record ID, Form Number and Page Number fields) or does not end with a summary record. In addition, the form record must contain a numeric Taxpayer Identification Number (TIN) that matches the TIN in the summary record.

    • "INVALID FORM TYPE FOR THIS EMS PROCESSING SITE" -- The FEPS will reject the entire transmission if the letter code for the Site Designator in column 75 of the TRANA record is anything other than the specified form type for that processing site.

    • "INVALID FORM TYPE IN INNER ENVELOPE FOR THIS EMS PROCESSING SITE AT RECORD nnnnnn" -- The FEPS will reject the entire transmission when the FEPS is not processing for the ELF site that is in the Site Designator in the Inner TRANA record. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID INNER ENVELOPE FORMAT AT RECORD nnnnnn" -- The FEPS will reject the entire transmission if any of the following conditions are not met for the contents of the inner envelopes: a) each record begins with a 4 digit byte count = 0120 b) the byte count is followed by the 4 asterisk record sentinel c) the record type is ACK or ACKR d) the last character is a #, based on the byte count in the first four digits. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID INNER ENVELOPE TRANA (TRANB or RECAP): WRONG LENGTH OR EMBEDDED # AT RECORD nnnnnn" -- If any of the following conditions exist in an inner envelope: a) TRANA record is not equal to 120 bytes in length or contains an imbedded pound sign. b) TRANB record is not equal to 120 bytes in length or contains an imbedded pound sign. c) RECAP record is not equal to 120 bytes in length or contains an imbedded pound sign. The FEPS shall generate an error ACK File. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID JULIAN DAY IN THE TRANA RECORD" -- The FEPS will reject the entire transmission when the Julian day in columns 91-93 of the TRANA record is more than 2 days prior to the actual receipt Julian day or more than one day after the actual receipt Julian day. Not Applicable to State Transmissions.

    • "INVALID PROCESSING SITE DESIGNATOR. C=ANDOVER, E=AUSTIN, H= FRESNO, F=KANSAS CITY, G=PHILADELPHIA" -- The FEPS will reject the entire transmission when the letter code for Site Designator in column 75 of the TRANA record is not equal to one of the alphabetic codes, OR when the actual processing site or alternate site code does not agree with the Site Designator in the TRANA record. [Memphis invalid effective July 01, 2005]

    • "INVALID PRODUCTION-TEST CODE – P = PRODUCTION, T = TEST" -- The FEPS will reject the entire transmission when Test/Production indicator in column 117 of the TRANA record does not equal ‘T’ or ‘P’.

    • "INVALID RECAP: WRONG LENGTH OR EMBEDDED #" -- The FEPS will reject the entire transmission when the byte count of the last record is not equal to 120 and the terminus character (#) agrees with the byte count.

    • "INVALID RECORD FORMAT IN RECORD NUMBER XXX" -- The FEPS will reject the entire transmission when the number of bytes in a record that the Trading Partner indicates does not equal the number counted by the FEPS, starting with the TRANA record. The byte count begins with the digits byte count followed by the 4 asterisks (****) in the record sentinel, the data, followed by the record terminus.

    • "INVALID T/P MODE FOR PROCESSING SITE DESIGNATOR" -- The FEPS will reject the entire transmission if a transmission is received and the Test/Production (T/P) indicator within the transmission does not match the processing modes allowed for the site, the transmission will be rejected.

    • "INVALID TAX RETURN FORMAT BEGINNING AT RECORD n" -- The FEPS will reject the entire transmission Error ACK message after the first occurrence of this validation error. For return transmissions, the FEPS will validate that every return begins with a tax return record (valid Record ID, Return type and Page number fields) and ends with a summary record. In addition, the tax return record must contain a numeric TIN that matches the TIN in the summary record. If an error is encountered, no further validation will take place after this first error is encountered.

    • "INVALID TOTAL ACK KEY COUNT IN ACK FOR ETIN NNNNN" -- The FEPS will reject the entire transmission if the number of Total ACK Key records in an "inner envelope" , does not match the number in Field 0030 of an "inner envelope" RECAP record. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID TOTAL ACKR COUNT IN INNER ENVELOPE RECAP AT RECORD nnnnnn." -- The FEPS will reject the entire transmission if the number of "ACKR" records in an "inner envelope" , does not match the number in Field 0100 of an "inner envelope" RECAP record. Applicable to State Acknowledgement Transmissions Only.

    • "INVALID TOTAL FORM COUNT IN RECAP" -- The FEPS will reject the entire transmission and generate an Error ACK file with the message if the number of ETD forms counted does not match the Total Form Count in columns 29-34 of the RECAP record.

    • "INVALID TOTAL RETURN COUNT IN RECAP RECORD" -- The FEPS will reject the entire transmission and generate this Error ACK message when the number of tax returns counted does not match the Total Return Count in columns 29-34 of the RECAP record.

    • "INVALID TRANA: WRONG LENGTH OR EMBEDDED #" -- The FEPS will reject the entire transmission when the byte count of the first record is less than 120 and the end-of- record indicator (#) agrees with the byte count.

    • "INVALID TRANB: WRONG LENGTH OR EMBEDDED #" -- The FEPS will reject the entire transmission when the byte count of the second record is less than 120 and the terminus character (#) agrees with the byte count.

    • "INVALID TRANSMISSION TYPE CODE" -- The FEPS will reject the entire transmission when the Trading Partner’s transmission type code specified in column 118 of the TRANA record is not valid. Valid codes must equal one of the following codes:
      Blank = regular 1040 Electronic Filing
      "D" = ETD
      "N" = ETD Online
      "O" = Online Filing
      "Z" = State Acknowledgement

    • "LOGON ETIN AND ETIN IN THE TRANA RECORD WERE DIFFERENT" -- The FEPS will reject the entire transmission when the ETIN in columns 84-88 of the TRANA record does not match the login ETIN.

    • "MULTIPLE INNER ENVELOPE TRANA/TRANB RECORDS DETECTED AT RECORD nnnnnn" -- The FEPS will reject the entire transmission if more than one TRANA record or TRANB record exists in the same inner envelope. Applicable to State Acknowledgement Transmissions Only.

    • "MULTIPLE TRANA/TRANB RECORDS DETECTED" -- The FEPS will reject the entire transmission when multiple TRANA or TRANB or RECAP records are found within a file. Not Applicable to State Acknowledgement Transmissions.

    • "NO ACKNOWLEDGEMENTS WITHIN THE TRANSMISSION" -- The FEPS will reject the entire transmission if the number of inner envelope counted is zero (0), a communications error ACK will be generated and returned to the State transmitter. Applicable to State Acknowledgement Transmissions Only.

    • "NO FORMS WITHIN THE TRANSMISSION" -- The FEPS will reject the entire transmission when there are no ETD forms within a transmission.

    • "NO INNER ENVELOPE TRANA RECORD RECEIVED AT RECORD nnnn" -- The FEPS will reject the entire transmission if the first record in the inner envelope is not a correctly formatted TRANA record as follows: a) byte count and end of record indicator(#) do not agree or b) record sentinel **** is not present or c) TRANA is not in columns 9-14 or d) byte count is > 120 characters or is not numeric or e) CR or LF imbedded within the record. Applicable to State Acknowledgement Transmissions Only.

    • "NO INNER ENVELOPE TRANB RECORD RECEIVED AT RECORD nnnn" -- If the second record in the inner envelope is not a correctly formatted TRANB record as follows: a) byte count and end of record indicator(#) do not agree or b) record sentinel **** is not present or c) TRANB is not in columns 9-14 or d) byte count is > 120 characters or is not numeric or e) CR or LF imbedded within the record. Applicable to State Acknowledgement Transmissions Only.

    • "NO RECAP RECORD RECEIVED; POSSIBLY DUE TO A LINE PROBLEM" -- The FEPS will reject the entire transmission when the last record byte count and the end-of-record indicator (#) do not agree, or record sentinel (****) is not present, or "RECAP" is not in columns 9-14, or byte count is > 120 characters or is not numeric, or less <CR> or less <LF> is imbedded within the record.

    • "NO RETURNS WITHIN THE TRANSMISSION" -- The FEPS will reject the entire transmission when there are no returns within a transmission.

    • "NO TRANA RECORD RECEIVED" -- The FEPS will reject the transmission when the first record byte count and end-of-record indicator (#) do not agree, or record sentinel (****) is not present, or "TRANA" is not in columns 9-14, or byte count is >120 characters or is not numeric, or imbedded within the record.

    • "NO TRANB RECORD RECEIVED" -- The FEPS will reject the entire transmission when the second record byte count and end-of-record indicator (#)do not agree, or record sentinel (****) is not present, or "TRANB" is not in columns 9-14, or byte count is >120 characters or is not numeric, or imbedded within the record.

    • "NON-MATCHING ETIN IN INNER ENVELOPE RECAP AT RECORD nnnnnn" -- The FEPS will reject the entire transmission if an inner RECAP record is detected with an ETIN that does not match the ETIN in the inner envelope TRANA record. Applicable to State Acknowledgement Transmissions Only.

    • "PRODUCTION-TEST CODE IN TRANA RECORD DOES NOT MATCH PROFILE" -- The FEPS will reject the entire transmission when the Production/Test indicator in column 117 of the TRANA record does not match the production/test mode in the Trading Partner profile. Not applicable to inner TRANA of State Acknowledgement Transmission.

    • "RECORD n <record-id> NOT IMMEDIATELY PRECEDED BY SUM RECORD" -- If SUM record is missing, EMS rejects the transmission. Where n stands for the number of the record being processed when the error is discovered and record-id stands for the value of the Record ID Field of record n, e.g., RECAP.

    • "RECORD n <record-id> NOT IMMEDIATELY PRECEDED BY SUMETD RECORD" -- If the SUMETD record is missing, EMS rejects the transmission. Where n stands for the number of the record being processed when the error is discovered and record-id stands for the value of the Record ID Field of record n, e.g., RECAP.

    • "THE T/P INDICATOR FOR INNER ENVELOPE AT RECORD nnnnnn MUST BE T for TEST" -- The FEPS will reject the entire transmission when the state transmitter is in test mode, if the T/P indicator (Field 0160) of an ‘inner envelope’ TRANA record is not 'T'. Applicable to State Acknowledgement Transmissions Only.

    • "TRANSMITTER NOT VALID FOR TRANSMISSION TYPE" -- The FEPS will reject the entire transmission when the Trading Partner profile in the TPDB does not allow the Transmission Type specified in column 118 of the TRANA record.

3.42.5.15.5.1  (10-01-2010)
Dropped-Transmission Aborts

  1. When the FEPS detects an error in transmission:

    1. Ask Providers to pick up their communication error ACK file which should indicate the reason for the error. The most common error is: TIME OUT RECEIVING ERROR OR NO RECAP.

    2. Have Providers re-transmit.

    3. Monitor the transmission on the computer console, if the Providers still cannot transmit.

    4. Fill out a Trouble Ticket on the Web-based e-help Desk and forward to the appropriate FEPS site. Request a trace be set up with the Provider.

3.42.5.15.5.2  (10-01-2010)
Software Problems

  1. A software problem is a programming problem. Calls received from Providers regarding software problems are very common. Most of the time these cannot be resolved by the e-help Desk, but often can be identified. Upon identification, the e-help Desk can refer the Provider to the software vendor, or contact the vendor regarding the problem. If the Providers receive ACK files that indicate total batch rejections, a data dump may help resolve the problem.

3.42.5.16  (10-01-2010)
Signatures for IRS e-file Returns

  1. Online taxpayers can e-file individual income tax returns only if the returns are signed electronically using a Self-Select PIN. Previously, signature Form 8453-OL, U.S. Individual Income Tax Declaration for an IRS e-file Online Return, was required from each online taxpayer not using the Self-Select PIN.

  2. Electronic Return Originators can e-file individual income tax returns only if the returns are signed electronically using either the Self-Select or the Practitioner PIN. Prior to Tax Year 2007, signature Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Online Return, was required to be submitted by the ERO for each return not using the Self-Select or Practitioner PIN.

  3. Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, is used by the ERO or online taxpayer to submit required supporting paper documents listed on the Form 8453 to the IRS.

  4. A signature Form 8453 (Tax Year 2006 and prior) or Form 8453-OL (Tax Year 2007 and prior) must be received for every accepted electronic return not filed in connection with an electronic signature. The return is not considered complete and therefore filed, until the Submission Processing Campus receives a complete and signed Form 8453/Form 8453-OL.

3.42.5.16.1  (10-01-2010)
Paperless Filing of IRS e-file Returns

  1. Taxpayers filing an electronic return using the Self-Select PIN method or the Practitioner PIN method can file an electronic, paperless tax return.

  2. Instructions for Form 8879, IRS e-file Signature Authorization, and Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, require the ERO to retain these forms in their file for three years from the return due date or IRS received date, whichever is later. EROs are instructed not to send them to the IRS. See IRM 3.42.5.16.1.4.

3.42.5.16.1.1  (10-01-2011)
Self-Select PIN Method

  1. The Self-Select PIN method is an innovative way of filing a totally paperless electronic tax return. The Self-Select PIN method is available for most taxpayers that file electronically using tax preparation software or file through a tax professional. The process requires the taxpayer be authenticated before they can actually electronically sign the tax return. To be authenticated the taxpayer must enter two pieces of information:

    • the date of birth and either

    • their Prior Year Self-Selected PIN, or

    • their original Prior Year AGI or

    • an Electronic Filing PIN (EFP).

    The original Prior Year AGI is not the amount from an amended tax return, a corrected amount from a math error notice, or a change made by IRS. The Electronic Filing PIN (EFP) is a temporary PIN that changes each tax year. The EFP functions as an alternate authentication if the Prior Year AGI or Prior Year Self-Select PIN information is unavailable. Taxpayers can input one or all three authenticators. Only one has to match for authentication to be successful. The Self-Select PIN method is available to first time filers who are sixteen or older on or before December 31, 2011. However, Primary taxpayers who are under sixteen that have filed before and Secondary taxpayers who are under the age sixteen that filed in the previous year are also eligible. It is also available for decedent returns. There is no signature document to mail to IRS. This process makes paperless filing available to almost everyone who uses IRS e-file.

  2. The taxpayer profile for using the Self-Select PIN method includes all Primary and Secondary taxpayers with valid SSNs or Individual Taxpayer Identification Numbers (ITINs) who filed using Form 1040, Form 1040A, Form 1040EZ, or Form 1040-SS (PR)for Tax Year 2010. If a taxpayer did not file a return in Tax Year 2010, they may still file a return using the PIN. They will be advised by their tax professional or tax preparation software to enter zeroes for the Prior Year AGI.

  3. If the taxpayer filed their prior year's tax return after cycle 50, using the ECC-MTB posting cycle, they should enter zero for their Prior Year AGI. If the taxpayer's last year AGI was negative, they must enter the amount as a negative number. If taxpayers are filing jointly this filing season, but filed separately last year, they will each use the AGI amount or PIN from their prior year tax return. If they filed jointly last year and again this filing season then their AGI amount would be the same for each taxpayer and each field must be entered. If the taxpayer has never filed a tax return, zero ("0" ) must be entered for their Prior Year AGI amount.

  4. In addition, taxpayers will be asked to provide their Date of Birth (DOB). This will be verified with records provided by Social Security Administration (SSA). If the DOB provided by the taxpayer does not match IRS records, the Acknowledgement Record will provide an indicator advising which taxpayer's DOB does not match. The taxpayer should be advised to contact SSA to review and correct their DOB as necessary.

    Note:

    A DOB mismatch will not cause the return using the Self-Select PIN method to reject if the taxpayer uses this method in the ERO’s office. However, all online returns require an exact match on DOB or they will reject.

  5. Beginning with Tax Year 2008, online taxpayers can e-file individual income tax returns only if the returns are signed electronically using the Self-Select PIN. Online taxpayers who are required to attach Appendix A, Statement by Taxpayer Using the Procedures in Rev. Proc. 2009–20; Form 1098-C; Form 2848 (or POA that states that the agent is granted authority to sign the return); Form 3115; Form 3468; Form 4136; Form 5713; Form 8283, if filing section B; Form 8332; Form 8858; Form 8864, if certificate and/or reseller statement is required; Form 8885 or Schedule D-1 to their return are eligible to use the Self Select PIN method. These filers are required to use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, to submit required paper documents to the appropriate Submission Processing Campus.

  6. Beginning with Tax Year 2007, Electronic Return Originators can e-file individual income tax returns only if the returns are signed electronically. EROs will use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, to submit required supporting paper documents listed on the Form 8453 to the appropriate Submission Processing Campus.

  7. Taxpayers may choose their own PINs or accept the PIN generated by software or entered by the ERO and complete Form 8879. The PIN can be any five digits except ALL zeros. For example, it can be 12345, 87877, or 01000. A husband and wife filing jointly can use the same PIN. See IRM 3.42.5.16.1.3(4), regarding ERO generation or assignment of taxpayer PIN.

3.42.5.16.1.2  (10-01-2010)
Practitioner PIN Method

  1. The Practitioner PIN method is another option for taxpayers that use paid preparers to e-file their return. Taxpayers can sign their own return electronically using a five digit PIN or authorize the ERO to sign the return with their (taxpayer's) five digit PIN. The PIN can be any five digits except ALL zeros. No Date of Birth (DOB), Adjusted Gross Income (AGI) or PIN from the prior year return is needed. Taxpayers can enter their own PIN as their signature or authorize the ERO to enter the taxpayer's PIN. Either way a Form 8879, IRS e-file Signature Authorization must be completed when using the Practitioner PIN method.

  2. See IRM 3.42.5.16.1.3(5), regarding ERO generation or assignment of taxpayer PIN.

  3. Taxpayers that are eligible to file Form 1040, Form 1040A, Form 1040EZ or Form 1040-SS (PR)may use the Practitioner PIN method. There is no age limit on who can use the Practitioner PIN method.

  4. Beginning with Tax Year 2007, Electronic Return Originators can e-file individual income tax returns only if the returns are signed electronically. EROs will use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, to submit required supporting paper documents listed on the Form 8453 to the appropriate Submission Processing Campus.

  5. The Practitioner PIN method offers another signature option for EROs to use in preparing and transmitting Form 1040/Form 1040A/Form 1040EZ and Form 1040-SS (PR)to IRS. This program was previously limited to EROs who had an agreement to participate in the program. However, beginning in TY 2002 the Practitioner PIN became available to all EROs (no agreements required). Form 8879, IRS e-file Signature Authorization, is required to be completed for all returns using the Practitioner PIN method. EROs should confirm the identity of taxpayers per Publication 1345 when completing Form 8879 prior to transmitting returns or releasing returns for transmission to IRS. The ERO must receive the signed Form 8879, then the ERO must sign Part III of Form 8879, using a PIN (a combination of their EFIN and five digits to create a unique signature). EROs must retain Form 8879 for three years from the due date of the return or the IRS received date, whichever is later. Form 8879 should not be mailed to IRS.

  6. Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, is required to be completed for all Form 4868 extension requests using the Practitioner PIN method. EROs should confirm the identity of taxpayers per Publication 1345 when completing Form 8878 prior to transmitting tax documents or releasing them for transmission to IRS. The ERO must receive the signed Form 8878, and then the ERO must sign Part III of Form 8878, using a PIN (a combination of their EFIN and five digits to create a unique signature). EROs using this electronic signature option must retain Form 8878 for three years from the due date of the extension request or the IRS received date whichever is later. Form 8878 should not be mailed to IRS. See IRM 3.42.5.16.1.3(12) for electronic record keeping guidelines. The use of the electronic signature provides for totally paperless extension request.

  7. Software Developers will build into their software the file specifications used for programming the Practitioner PIN. The file specifications are found in Publication 1346.

3.42.5.16.1.3  (10-01-2010)
IRS e-file Signature Authorization Forms

  1. The IRS has developed 2 forms enabling taxpayers to authorize their Electronic Return Originator (ERO) to enter the taxpayer self–selected PIN on their tax returns or extension applications. These forms should be made available to those clients who are unable or unavailable to return to the office to sign, or when it is inconvenient for the taxpayer to personally sign the electronically prepared individual income tax return.

  2. The following 2 signature authorization forms are available for individual taxpayers:

    • Form 8879, IRS e-file Signature Authorization (used by filers of Form 1040, Form 1040A, Form 1040EZ, or Form 1040-SS (PR)).

    • Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350.

  3. Beginning in Tax Year 2005, Form 8879 and Form 8878 are included in the Electronic Funds Withdrawal Consent in Part II of each form.

  4. Form 8879 must be completed for each individual income tax return that is prepared using the Practitioner PIN method. The EROs must complete the entity header information, and Parts I and III of Form 8879. Part II is completed by the taxpayer(s) and includes a checkbox for them to indicate if they authorize the ERO to enter the taxpayer's PIN, or if they will personally enter their PIN as the signature on their return. Form 8879 is required for all returns filed using the Practitioner PIN method regardless of who inputs the taxpayer's PIN. Completion of Part III by the ERO indicates that the return was prepared in accordance with requirements for the Practitioner PIN method. These tax returns do not require input of the taxpayer's Date of Birth, Prior Year Adjusted Gross Income, or Prior Year PIN as authentication.

  5. Beginning Tax Year 2004, it became acceptable for an ERO and/or software program to generate or assign the five digit taxpayer PIN used to sign the return. The taxpayer PIN can be systemically generated or manually assigned by the ERO and entered in Part II of the signature authorization form. The taxpayer will consent to the PIN assigned by the ERO by completing and signing Part II of the signature authorization form.

  6. Form 8879 IS REQUIRED when a Form 1040, Form 1040A, Form 1040EZ and Form 1040-SS (PR) taxpayer:

    1. Files through an ERO and authorizes the ERO to enter the taxpayer Self-Select PIN as the taxpayer's electronic signature on the return. The ERO must complete the header entity information and Part I of Form 8879; the taxpayer(s) complete Part II; or

    2. Files their tax return through an ERO using the Practitioner PIN method. All parts of Form 8879 must be completed. See IRM 3.42.5.16.1.3(3)

  7. Form 8879 IS NOT REQUIRED when a Form 1040, Form 1040A, Form 1040EZ or Form 1040-SS (PR)

    1. Files through an ERO and personally enters their taxpayer PIN as their electronic signature on the return; or

    2. Files through an "Online" Provider and uses a taxpayer PIN as their electronic signature on the return.

  8. Form 4868 can also be signed using the Practitioner PIN method. A Form 8878 is to be completed by all taxpayers who use this method. Taxpayers will check the appropriate box in Part II to indicate if they will enter their own PIN or authorize the ERO to do so on their behalf. Part III of Form 8878 must always be completed by the ERO. The taxpayer's signature is only required with Form 4868 when an electronic funds withdrawal is being made.

  9. Approved copies of Form 8879 and Form 8878 are available on the IRS website for Software Developers to include in their software packages. The level of sophistication of software products may vary, with some providing the ability to generate information in various fields from the related return or document.

  10. The practitioner must provide a copy of the Form 8879 or Form 8878 to the taxpayer along with the completed copy of the tax return or document for review. This can be done in person or by sending the form to the taxpayer using the U.S. mail, a private delivery service (e.g. Federal Express, United Parcel Service), e-mail, or an Internet website. Upon completion, the taxpayer must return the Form 8879 or Form 8878 to the ERO by hand delivery, U.S. mail, private delivery service, or fax transmission.

  11. The ERO must retain all Form 8879 or Form 8878 for three years from the return due date or IRS received date, whichever is later. They are instructed not to send them to IRS.

  12. EROs may electronically image and store all paper records they are required to retain. This includes Form 8453 and paper copies of Form W-2, Form W-2G, Form 1099-R, as well as any supporting documents not included in the electronic record and Form 8879 and Form 8878. The storage system must satisfy the requirements of Revenue Procedure 97-22, Retention of Books and Records. In brief, Revenue Procedure 97-22 requires the electronic storage system ensure an accurate and complete transfer of the hard copy or computerized records to electronic storage media. In addition, all records reproduced by the electronic storage system must exhibit a high degree of legibility and readability (including the taxpayer’s signature) when displayed on a video display terminal and when reproduced in hard copy.

3.42.5.16.1.4  (10-01-2011)
Processing Authorization Forms Submitted to IRS in Error

  1. Copies of Form 8879 and Form 8878 marked "duplicate" or "copy" , received by the Service in error, may be destroyed as "classified waste" as they are not required to be filed with the Service.

  2. If an ERO or taxpayer has submitted an original Form 8879 or Form 8878 to IRS that should have been retained in their file, contact the ERO or taxpayer by telephone or correspondence to explain the retention requirement and/or arrange to return the forms back to them. It is advisable to contact those EROs who submit a significant volume of authorization forms to IRS in error as early in the filing season as possible to minimize future incoming receipts. When appropriate, contact the assigned ETA National Account Manager for assistance.

  3. Submission Processing sites may also receive Form 8879 submitted by taxpayers and EROs for purposes other than a signature authorization. Research may be necessary to determine the intent of the taxpayer or ERO and appropriate resolution. The following information can be used as a guide, but each case is unique and resolution requires individual judgement. Seek management guidance or approval, as necessary. The following list is not all inclusive, but should be used as examples and guidance:

    • Authorization form was used to transmit return payments to lockbox or campuses - if research indicates that a tax return has already been filed, and the tax signature requirement has been satisfied with a taxpayers PIN, Form 8879 can be destroyed as classified waste.

    • Authorization form submitted in lieu of the proper tax return or an amended return - you may contact the taxpayer advising them to file the appropriate tax return or amended tax return.

    • Authorization form used to submit attachments to be associated with a filed return - refer to IRM 3.42.5.16.19 to process attachments that should have been submitted with Form 8453 Transmittal or to IRM 3.42.5.17.2 for other attachments received.

    • Authorization form was used to submit Tax Year 2006 Schedule D-1 (or acceptable substitutes) attachments - prepare and attach a "dummy" Form 8453 to allow pipeline processing. Indicate in the taxpayer signature field of Part 1, "PIN Used - Schedule D-1 Requirement."

3.42.5.16.2  (10-01-2010)
Form 1040 Online Filing

  1. The taxpayer will use tax preparation software bought off the shelf or available by electronic transmission to create an electronic income tax return using a personal computer internet connection. Online returns will be transmitted to IRS through the online filing company. The online filing company will transmit all online returns from taxpayers to the appropriate Submission Processing Campus within 24 hours; retrieve the taxpayer acknowledgement and provide the acceptance and rejection notification to the taxpayer. Online filing companies will translate IRS reject codes into language easy for taxpayers to understand and provide assistance in the correction process as a service to their clients.

  2. Online taxpayers can e-file their individual income tax returns only if the returns are signed electronically using the Self-Select PIN. Online taxpayers will use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, to submit required supporting paper documents listed on the Form 8453 to the appropriate Submission Processing Campus.

  3. Refunds should be in the taxpayer's account (if Direct Deposit is requested), within 3 weeks. Questions regarding refunds should be directed to Tele-Tax at 1-800-829-4477 (toll free) or the IRS Refund Hotline at 1-800-829-1954 (toll free). Taxpayers can also check the status of their refund through "Where's My Refund" on the IRS web site.

3.42.5.16.3  (10-01-2010)
Processing of Form 8453/Form 8453-OL

  1. Receipt and Control Operations will pull, sort and batch all incoming Form 8453/Form 8453-OL according to procedures contained in IRM 3.10.72, Extracting, Sorting and Numbering.

  2. The below listing of acceptable attachments to Tax Year 2008 Form 8453 require no action and should not be separated from Form 8453.

    • Appendix A, Statement by Taxpayer Using the Procedures in Rev. Proc. 2009-20 to Determine a Theft Loss Deduction Related to a Fraudulent Investment Arrangement

    • Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (or acceptable documentation/required donor documentation)

    • Form 2848, Power of Attorney and Declaration of Representative (or POA that states that the agent is granted authority to sign the return)

    • Form 3115, Application for Change in Accounting Method

    • Form 3468, Investment Credit, if Historic Structure Certificate is required

    • Form 4136, Credit for Federal Tax Paid on Fuels, if certificate and/or reseller statement is required

    • Form 5713, International Boycott Report

    • Form 8283, Noncash Charitable Contributions, Section A, if statement(s) required, or Section B, Donated Property

    • Form 8332, Release / Revocation of Release of Claim to Exemption for Child by Custodial Parent (or certain pages from a divorce decree or separation agreement , that went into effect after 1984 and before 2009) (see instructions)

    • Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities

    • Form 8864, Biodiesel and Renewable Diesel Fuels Credit, if certificate and/or reseller statement is required

    • Form 8885, Health Coverage Tax Credit

    • Schedule D-1, Continuation Sheet for Schedule D (Form 1040) (or acceptable substitute), required when taxpayer elects not to include their transactions on the electronic STCGL/LTCGL Records

  3. Receipt and Control Operations will sort and route the following Form 8453/Form 8453-OL to e-help using Form 12305, Intra-SC Reject or Routing Code Slip.

    • Form 1040 series return attached

    • Prior Year

    • Other

    Note:

    Receipt and Control Operations will route sorted prior year Form 8453/Form 8453-OL to batching; prior year forms will be numbered with the applicable list year and then sorted prior year forms will be routed to e-help for processing.

  4. Form 8453/Form 8453-OL receipts with Form 1040 series return attachments should be worked expeditiously by e-help.

  5. Form 8453/Form 8453-OL attachments that do not require additional actions, will remain attached to Form 8453/Form 8453-OL. Refer to IRM 3.10.72, Extracting, Sorting and Numbering, for routing of attachments.

  6. Form 8453/Form 8453-OL receipts are processed using a Form 8453/Form 8453-OL DLN. The 2 digit file location code will be the same as paper documents numbered by the Submission Processing Campus. The tax class will be "2" , and the document code will be "59." (See Figure 3.42.5-6) The Form 8453/Form 8453-OL DLN will not be the same as the return DLN.

    Figure 3.42.5-3
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Electronic Return DLN/Form 8453 DLN

  7. Tax Year 2007 Form 8453 receipts will be numbered using blocking series 000-299 and Form 8453-OL receipts will be numbered using blocking series 300-999.

3.42.5.16.4  (10-01-2011)
State Form 8453/Form 8453-OL

  1. If State Form 8453/Form 8453-OL are received in e-help, route to Receipt and Control Operations for mailing or forward to the applicable state address on the Form 8453 (if available). See http://www.irs.gov/pub/irs-utl/charstatety11_fs12_97716_120911.pdf to determine if a state requires their State Form 8453 to be sent to them.

3.42.5.16.5  (10-01-2011)
Prior Year Form 8453/Form 8453-OL
Tax Year 2005 through Tax Year 2011

  1. Prior year Form 8453/Form 8453-OL should not be processed with current year Form 8453. The Receipt and Control Operations will route all prior year Form 8453/Form 8453-OL to e-help.

3.42.5.16.5.1  (09-06-2012)
Procedures for Prior Year Signature Form 8453/Form 8453-OL
Tax Year 2003 and Prior

  1. Prior year Form 8453/Form 8453-OL (2003 & Prior) can be discarded as classified waste if no other correspondence is attached that requires action.

3.42.5.16.5.2  (09-06-2012)
Procedures For Prior Year Signature Form 8453/Form 8453-OL
Tax Year 2004 and Subsequent

  1. Research IDRS CC R8453 with SSN definer to research the taxpayer's 8453 history.

    Note:

    IDRS CC R8453 input will require input of a tax year (i.e. 201112) for a prior year request.

    1. If the Form 8453/Form 8453-OL is not required because a PIN was used, the return was Tele Filed or a paper return exists, discard Form 8453/Form 8453-OL as classified waste if no other correspondence is attached that requires action.

      Note:

      Due to the absence of a paper document indicator in the electronic return record, Tax Year 2005 Form 8453/Form 8453-OL may be received with Schedule D-1 (or acceptable substitutes) attachments, when a PIN signature method was used. Upon review of the generated PIN USED error, return the Form 8453/Form 8453-OL with Schedule D-1 attachments to Files for re-file under the Form 8453 DLN. A TC 290-0 adjustment action will not be required to re-file these documents.

    2. If Form 8453 is incomplete, return Form 8453 to the ERO using TPDS Letter 2758 (INC). If Form 8453-OL is incomplete, send Letter 2939 to the taxpayer.

    3. If no return was filed, return Form 8453 to the taxpayer using Letter 2755 or return Form 8453-OL to the taxpayer using Letter 3045.

  2. If no paper 8453 DLN is present on IDRS CC R8453:

    1. Add the Form 8453 DLN record using IDRS CC ELFUP Action Code A;

    2. Hold Form 8453/Form 8453-OL for one day;

    3. The following day, verify IDRS CC R8453 to determine if Form 8453/Form 8453-OL was entered correctly (make any corrections required);

    4. When it is determined the Form 8453/Form 8453-OL was entered correctly, route Form 8453/Form 8453-OL to the Files Unit for routing to the Federal Record Center (FRC).

  3. If an 8453 DLN is present on IDRS CC R8453, request the Form 8453/Form 8453-OL from files using IDRS CC ESTAB or send the duplicate Form 8453/Form 8453-OL to the Campus where the Form 8453/8453-OL was processed.

    1. If both Form 8453/Form 8453-OL are for the correct entity, attach a blank label over the DLN or line through the DLN on the duplicate Form 8453/Form 8453-OL, attach the duplicate Form 8453/Form 8453-OL to the original Form 8453/Form 8453-OL and route to the Files Unit.

3.42.5.16.5.3  (09-06-2012)
Procedures for Prior Year Transmittal Forms 8453 Tax Year 2007 through 2011

  1. When a prior year transmittal Form 8453 is received:

    1. Add the Form 8453 DLN record using IDRS CC ELFUP Action Code A;

    2. Hold Form 8453 for one day;

    3. The following day, verify IDRS CC R8453 to determine if Form 8453 was entered correctly (make any corrections required);

    4. When it is determined the Form 8453 was entered correctly, route Form 8453 to the Files Unit for routing to the Federal Record Center (FRC).

3.42.5.16.6  (10-01-2010)
Prior Year Form 8453/Form 8453-OL Intended as Current Year

  1. Online taxpayers filing an electronic return must use the Self-Select PIN method to sign their return. Form 8453-OL receipts indicating Tax Year 2008 and subsequent years are not required. If no other correspondence is attached that requires action; then discard Form 8453-OL as classified waste. See IRM 3.42.5.17.3, regarding attaching documents to electronic returns.

  2. Research IDRS to verify the year of Form 8453.

  3. If Form 8453 was intended for current year, edit year on Form 8453 and forward Form 8453 for regular processing.

3.42.5.16.7  (09-06-2012)
Form 8453/Form 8453-OL Held by Criminal Investigation (CI)

  1. If original Form 8453/Form 8453-OL are being held by Criminal Investigation (CI), and have not been processed in the Submission Processing Campus, CI will have them processed, using the procedures in IRM 9.8.1, Scheme Development Center, under Questionable Refund Program (QRP) Section and related IRMs.

3.42.5.16.8  (10-01-2010)
Incomplete Prior Year Signature Form 8453/Form 8453-OL

  1. Every Form 8453 (Tax Year 2006 and prior) and Form 8453-OL (Tax Year 2007 and prior) must be complete with a taxpayer signature(s) or authorized agent's signature with a copy of Power of Attorney (POA).

3.42.5.16.8.1  (10-01-2010)
Missing Taxpayer Signature(s)

  1. Refer to signature requirements contained in IRM 3.11.3, Individual Income Tax Returns. These procedures also apply to Form 8453, Form 8453-OL and the Letter 2939 jurat. The taxpayer's signature(s) is acceptable anywhere below the jurat.

  2. If a properly signed Form 1040, Form 1040A, Form 1040EZ or Form 1040-SS (PR) is attached to Form 8453/Form 8453-OL, it is acceptable for the signature.

    Note:

    To avoid the possibility of the attached Form 1040 being processed through the pipeline, mark Form 1040 with a large "X" . If the taxpayer's signature appears in an area of the Form 8453/Form 8453-OL other than the signature line, arrow it to the signature line and continue to process.

  3. If no signature is found, follow incomplete procedures in IRM 3.42.5.16.5, Prior Year Form 8453/Form 8453-OL.

3.42.5.16.8.1.1  (10-01-2010)
Missing Power of Attorney (POA)

  1. Research IDRS CC CFINK to determine if a POA is new or a POA is on file. A limited POA, general POA, or Form 2848 is an acceptable attachment to Form 8453/Form 8453-OL when a Power of Attorney has signed Form 8453/Form 8453-OL for the taxpayer.

    Note:

    Research is not necessary for General POA Forms. Prepare a Form 9856, Attachment Alert, and send General POA to Files to be associated with Form 8453/Form 8453-OL.

  2. If a POA is on file, Enter an audit trail "POA in Centralized Authorization File (CAF)" on Form 8453/Form 8453-OL.

  3. If a POA is not on file, follow incomplete procedures in IRM 3.42.5.16.5, Prior Year Form 8453/Form 8453-OL.

3.42.5.16.8.1.2  (10-01-2011)
Responses to Incomplete Form 8453-OL Letters

  1. When the signed Declaration of Taxpayer (reverse of letter) is received in response to the Letter 2939, prepare Form 9856, Attachment Alert, to have the declaration associated with the incomplete Form 8453-OL DLN.

  2. If multiple Form 8453-OL DLNs are present on IDRS CC R8453, resolve the Outstanding Errors, then associate the signed declaration with the Form 8453-OL DLN.

  3. If a Power of Attorney is received, complete Form 9856, Attachment Alert, to have the document associated with the incomplete Form 8453-OL.

3.42.5.16.8.1.3  (10-01-2010)
Undeliverable Form 8453-OL Correspondence

  1. Form 8453-OL correspondence may be returned to the IRS as undeliverable. Undelivered mail is any letter that was sent to the taxpayer and returned to us with an indication that the taxpayer no longer resides at the address where the mail was sent.

  2. If the letter is received with a yellow Post Office (P.O.) change of address sticker, re-mail the letter to the new address.

  3. Discard as classified waste all letters marked with "Refused" ,"Unclaimed" or "Undeliverable" .

3.42.5.16.8.1.4  (10-01-2010)
Corresponding on Incorrect Forms 8453-OL

  1. When corresponding to request the correct Form 8453-OL (due to submission of an incorrect form by the taxpayer), send Letter 3226 (SC/CG) to the taxpayer.

3.42.5.16.9  (10-01-2010)
Cross-Check Between Form 8453/Form 8453-OL and Electronic Returns

  1. A cross-check is performed by the Tax Return Database (TRDB) to match the Form 8453 SSN with the SSN of the accepted electronic return.

3.42.5.16.10  (10-01-2010)
Electronic Return Record

  1. An electronic return record is created in TRDB when an electronic return is acknowledged as accepted by the Service. If a required Form 8453 is received for the same SSN, it will be displayed on IDRS CC TRDBV and CC R8453 with a SSN definer.

3.42.5.16.11  (10-01-2010)
Reports

  1. The ELF61 and TRDB-R8453 generate various 8453-related files and reports. Below is a listing of only those reports that are actually worked in e-help.

    • ELF6144 (ELFUP Request Record).

    • Outstanding Error Listing (Command Code R8453).

    • DLN Block Listing (Command Code R8453).

    • Correction History Listing (Command Code R8453).

    • Generated 8453 Chargeouts Listing (Command Code R8453).

3.42.5.16.12  (09-06-2012)
IDRS Command Code ELFUP

  1. IDRS CC ELFUP is used to correct Form 8453 processing errors or to update the R8453 record.

    • Action Codes A, C, and D and Definer Code R are used to update the Outstanding Error Listing for Tax Year 2004 and subsequent years.

    • Action Code D removes the deleted DLN from the TRDBV display.

      Action Requested Action Code or Definer Required
      ADD the 8453 DLN Record Action Code A
      CHANGE the 8453 DLN Record Action Code C
      DELETE the 8453 DLN Record Action Code D
      REPLACE/Correct the 8453 SSN Record Definer R

  2. Command Code ELFUP should be restricted to e-help employees. A maximum of 11,000 ELFUPs are allowed per session.

    Note:

    If the maximum input is reached, a message will appear at the bottom of the CC ELFUP screen. When this occurs, you should discontinue input and notify your work leader/manager.

  3. ELFUP actions will be listed on the Correction History Listing and CC R8453 with a SSN definer (Tax Year 2003 and subsequent).

3.42.5.16.13  (10-01-2010)
Outstanding Errors Listing

  1. The Outstanding Errors Listing shows the errors that occurred through IDRS CC ELFUP or Integrated Submissions and Returns Processing (ISRP) runs. The Outstanding Errors Listing will be researched using IDRS CC R8453, definer AN3, or AU3 or MS3. The input source codes are ELFUP or ISRP. Totals may be researched using IDRS CC R8453 with definer TT3.

  2. A listing of Outstanding Errors for an individual taxpayer's Form 8453 record will be included in the screen display of CC R8453 with a SSN definer. Invalid SSN errors will only be included on the Outstanding Errors Listing since a CC R8453 request for an invalid SSN will not be considered a valid request.

  3. TRDB will generate Form 4251, Return Charge-Out, for Form 8453 errors. The charge-outs will be generated on a daily basis for current day errors. A daily listing of the generated charge-out requests can be researched using IDRS CC R8453 with definer AN1 or AU1. Totals may be researched using IDRS CC R8453 with definer TT1.

  4. Error messages appearing on the Outstanding Errors Listing include:

    • Invalid SSN

    • Invalid FLC

    • Invalid Tax Class

    • Invalid Doc Code

    • Invalid Julian Day

    • Day GT Current Date

    • Duplicate DLN/SSN

    • Duplicate DLN

  5. After Outstanding Errors have been corrected, Form 8453/Form 8453-OL should be routed to Files area.

3.42.5.16.13.1  (10-01-2010)
"Invalid SSN" Error Message

  1. This error message occurs when the Form 8453 SSN record to be updated is not numeric, is all zeros or ISRP did not enter the SSN.

  2. When Form 8453 is received:

    1. Research IDRS CC NAMES or SSNAD to determine taxpayer's valid SSN.

    2. Replace/correct the 8453 SSN Record using CC ELFUP Definer Code R. For an invalid SSN error, the 8453 SSN input to IDRS CC ELFUP must be zeros.

3.42.5.16.13.2  (10-01-2010)
"Invalid FLC" , "Invalid Tax Class" and "Invalid DOC Code Error Messages"

  1. When the Form 8453 is entered with an invalid filing location code, tax class or document code, these error messages occur.

    1. Review the Form 8453 document to determine the correct DLN.

    2. Change the 8453 DLN record using CC ELFUP Action Code C.

    3. If entire block is invalid, hand-carry documents to Numbering to be renumbered and have ISRP re-input.

3.42.5.16.13.3  (10-01-2010)
"Invalid Julian Day" Error Message

  1. When Form 8453/Form 8453-OL is entered with a Document Locator Number (DLN) containing a Julian Date that exceeds 365 or that is not greater than zero, this error message occurs.

    1. Review the Form 8453 document to determine the correct Julian Day.

    2. Change the 8453 DLN Record using CC ELFUP Action Code C.

    3. If entire block is invalid, hand carry document to Numbering Unit to be renumbered and have ISRP re-input.

3.42.5.16.13.4  (10-01-2010)
"DAY GT CURRENT DATE" Error Message

  1. When Form 8453 DLN is entered with a Document Locator Number (DLN) containing a Julian Date that is greater than the ISRP input date, this error message occur.

    1. Review the Form 8453 document to determine the correct DLN.

    2. Change the 8453 DLN record using CC ELFUP Action Code C.

    3. If entire block is invalid, hand-carry documents to Numbering to be renumbered and have ISRP re-input.

3.42.5.16.13.5  (10-01-2010)
"Duplicate DLN/SSN" Error Message

  1. This error message occurs when the Form 8453 is entered with a duplicate 8453 DLN and the SSNs are the same. The existing 8453 DLN and SSN will be displayed.

  2. Review the Forms 8453.

  3. If the SSNs and DLNs match, delete the duplicate 8453 DLN record using CC ELFUP Action Code D.

3.42.5.16.13.6  (10-01-2010)
"Duplicate DLN" Error Message

  1. This error message occurs when the Form 8453 is entered with a duplicate 8453 DLN and the SSNs are different. The existing 8453 DLN and SSN will be displayed.

  2. Both Form 8453 processed will appear on the Outstanding Errors Listing.

  3. Review the Form 8453 to determine the correct DLN. Change the incorrect 8453 DLN Record using CC ELFUP Action Code C.

3.42.5.16.13.7  (10-01-2010)
Paper Return is Attached to Form 8453/8453-OL

  1. Form 8453/Form 8453-OL with a Form 1040 series return attached should be prioritized and worked daily by e-help.

  2. If paper return has not been previously processed:

    1. If the return received date is not present, edit return received date in red MMDDYYYY format near Line 14 of the paper return. Use the taxpayer's signature date from Form 8453/Form 8453-OL or if there is no signature date present, use the Julian Date of Form 8453/Form 8453-OL to determine received date.

    2. If the Form 8453/Form 8453-OL is required for taxpayer signature requirements, edit Form 8453/Form 8453-OL "Paper Return, Do not Process" in the top margin. Line through the Form 8453/Form 8453-OL. Staple the edited Form 8453/Form 8453-OL to the back of the return.

    3. If the Form 8453/Form 8453-OL is not required for taxpayer signature requirements, discard Form 8453/Form 8453-OL as classified waste.

    4. Send the return to Receipt and Control Operations for batching.

    5. Delete the Form 8453/Form 8453-OL DLN record using CC ELFUP Action Code D.

  3. If the paper return has been previously processed and the paper return is a true duplicate:

    1. Prepare a Form 9856, Attachment Alert, to associate duplicate return with filed return.

    2. Delete the Form 8453/Form 8453-OL DLN record using CC ELFUP Action Code D.

3.42.5.16.13.8  (10-01-2010)
Prior Year Form 8453/ Form 8453-OL Numbered as Current Year

  1. Prior year documents appearing on the Outstanding Error Listing should be deleted to remove the SSN from the current year report.

  2. Line through the current year DLN on Form 8453/Form 8453-OL and follow the procedures in IRM 3.42.5.16.5, Prior Year Forms Form 8453/Form 8453-OL.

  3. Delete the Form 8453 DLN Record using CC ELFUP Action Code D.

3.42.5.16.14  (10-01-2011)
DLN Block Listing

  1. The DLN Block Listing will appear on IDRS CC R8453 using definer AU4. Definer Codes AU4 can also be researched with a Julian day. The Listing will show the error that occurred through IDRS CC ELFUP or ISRP. The listing is also referred to as the CPL. This list is used to verify blocks input by ISRP.

  2. TRDB will generate Form 4251, Return Charge-Out, for the Form 8453 ISRP errors identified as DLN errors The charge-outs will be generated on a daily basis for current day errors. A daily listing of the generated charge-out requests can be researched using CC R8453 with definer AU1. Totals may be viewed by using CC R8453 with definer TT1.

  3. Error messages appearing on the DLN Block Listing include:

    • Invalid List Year

    • Invalid FLC

    • Invalid Tax Class

    • Invalid DOC Code

    • Duplicate DLN/SSN

    • Duplicate DLN

    • DLN Gap

  4. Research Form 1332, Block and Selection Record, against the DLN Report to determine the correct DLN.

    Note:

    When a document is pulled from the block and not returned, Form 4251, Return Charge-Out, must be annotated with the disposition of the document.

3.42.5.16.14.1  (10-01-2010)
Retrieving Error Blocks

  1. The Cycle Control Unit should not file the blocks containing errors. e-help will monitor the DLN errors daily. Coordination should be made to have the Cycle Control Unit send all blocks reflecting errors on the DLN Block Listing to e-help or e-help may request blocks from files by using generated Form 4251, Return Charge-Out. The following is a list of 8453 DLN errors:

    • "Invalid List Year" Error Message - This error message occurs when the transcribed 8453 DLN list year is other than the current processing year.

    • "Invalid DLN FLC" Error Message - This error message occurs when an invalid 8453 DLN File Location Code is transcribed.

    • "Invalid Tax Class" and "Invalid DOC Code" Error Message - This error message occurs when transcribed 8453 DLN tax class and document code are other than 259.

3.42.5.16.14.2  (10-01-2010)
Resolving Invalid DLN Error Messages

  1. If the DLNs stamped on Form 8453 are valid but ISRP entered them incorrectly; return the block to ISRP for re-input.

  2. If the DLNs stamped on Form 8453 are invalid:

    1. Line through invalid DLN,

    2. Hand-carry documents to Numbering to be renumbered and ISRP input.

  3. If portion of a block was input incorrectly by ISRP:

    1. It is possible for ISRP to enter part of a block incorrectly and only a portion of a block will reflect an error message. For example: The listing has a DLN of 18259-xxx-060xx-x and a return count of 60. This indicates that ISRP entered 40 DLNs incorrectly and the other 60 correctly.

    2. Request and review IDRS CC R8453 to determine which documents were entered incorrectly. Change the 8453 DLN Record using IDRS CC ELFUP Action Code C, or

    3. If necessary, hand carry documents to Numbering to be renumbered and have ISRP input.

    Note:

    If documents are renumbered, a log should be kept of the new DLNs assigned for working the Outstanding Error Listing.

3.42.5.16.15  (10-01-2010)
Resolving Invalid Document Count Error Condition

  1. The listing may contain blocks that appear to contain more than 100 documents.

    If... Then ...
    there is an Unnumbered document in a block; 1. Remove the unnumbered document(s).
    2. Research CC R8453 to determine if DLN has been assigned
    3. Hand-carry documents to Numbering and ISRP input.
    there are Duplicate DLNs in the block; 1. Line through incorrect DLNs.
    2. Hand-carry documents to Numbering for renumbering and ISRP input.
    block contains 100 correctly numbered documents; 1. A document entered twice will be included on the Duplicate Error Message Listing.
    It can be assumed that ISRP entered a document twice or entered an SSN from an attachment.
    document count is 200 or more and CCU has 2 blocks with the same DLN; 1. Research IDRS CC R8453 on a sampling of Form 8453 from the 2 blocks to ensure which documents are correct.
    2. Line through DLNs on second block; hand-carry documents to Numbering for renumbering and ISRP input.

3.42.5.16.15.1  (10-01-2010)
Duplicate DLN/SSN Error Message

  1. When transcribed 8453 DLN data contains more than one occurrence of an 8453 DLN and the SSNs are the same, this error message occurs. Do the following:

    1. Review a sample of Form 8453 from the block and if the SSNs and DLNs match:

    2. Delete the duplicate 8453 DLN Record using CC ELFUP Action Code D.

    3. Return block to files.

      Note:

      This can occur if ISRP entered the same block on different days; inadvertently did not release the block to Files and re-entered it the next day.

3.42.5.16.15.2  (10-01-2010)
"Duplicate DLN" Error Message

  1. This error message occurs when transcribed 8453 DLN data contains more than one occurrence of an 8453 DLN and the SSNs are different. This can be caused by ISRP or CC ELFUP incorrectly transcribing a DLN that had been previously input or if Numbering assigns the same DLN to multiple blocks. Do the following when another block is received:

    1. Review the document to determine if the SSNs and DLNs match the transcribed data.

    2. Correct the 8453 DLN Record using IDRS CC ELFUP Action Code C.

  2. If another block is not received, do the following:

    1. ISRP may have incorrectly entered a block on a prior day. The block may have been filed under the DLN on the document, not the DLN input by ISRP. When the correct block is input by ISRP, the DLN is already on R8453 and the second ( correct ) block is in error. It is not always possible to find the first block since it is filed under an unknown DLN.

    2. Attempt to locate the incorrect block by researching prior DLN Block Listing for the DLN. The list may have a "gap" in blocks indicating a possible DLN where the incorrect block may be filed.

    3. Request possible erroneous blocks with CC ESTAB using DLN as it should have been entered.

    4. Correct the 8453 DLN Record using IDRS CC ELFUP Action Code C.

3.42.5.16.15.2.1  (10-01-2010)
"DLN Gap" Error Message

  1. When a gap exists in the serial numbers of transcribed 8453 DLN data within a block, this error message occurs. Do the following:

    1. Check ISRP input records (Form 2345, etc.) or with Numbering. If ISRP and Numbering indicate a DLN was assigned, and already input by ISRP:

    1. Request block from Files.

    2. Research IDRS CC R8453 to determine which documents posted with an incorrect Form 8453 DLN.

    3. Perform a random sampling using IDRS CC R8453 to determine where the problem occurred. (Continue with sampling until the problem can be identified).

    4. If the 8453 DLN that was input does not match the DLN on the form, correct the 8453 DLN record using CC ELFUP Action Code C.

    5. Send the completed blocks to Files.

      Note:

      All documents in the block may need to be researched using IDRS CC R8453 to find all incorrect DLN(s).

  2. Check the document count for partial blocks. ISRP is able to change DLNs within a block. This will cause 2 separate DLNs to generate on the CPL. The 2 blocks can be identified by similarities and the document count equal to "100" . Example: CPL will have a DLN 18259-051-00900-4 with a document count of 60 and 18259-050-00 and a document count of 40.

3.42.5.16.16  (10-01-2010)
Correction History Listing

  1. TRDB-R8453 will create a daily Correction History Listing of corrected 8453 SSNs and DLNs. The Correction History Listing will be researched using IDRS CC R8453, definer AU2, Definer Code AU2 can also be researched with an employee-ID. Totals may be researched using IDRS CC R8453 with definer TT2. Correction History for a taxpayer's 8453 Record will also be displayed using CC R8453 with a SSN definer.

  2. For an INVALID SSN ERROR, the 8453 SSN input to IDRS CC ELFUP must be zeros.

  3. For a DUPLICATE SSN/DLN ERROR, all instances of the duplicated 8453 DLN and SSN within the Campus will be applied, with the exception of the earliest occurrence.

  4. For ELFUP Action Code A, the change status will be identified as APPLIED and the action description ADD for each input.

  5. For ELFUP Action Code C, the change status will be identified as APPLIED and the action description CORRECTED when the ELFUP 8453 SSN and 8453 DLN is equal to the transcribed 8453 SSN and the 8453 DLN. The change status will be identified as NOT FOUND when the ELFUP 8453 SSN and 8453 DLN are not equal to the 8453 SSN and DLN which are stored on the TRDB database and displayed within IDRS CC R8453.

  6. For ELFUP Action Code D, the change status will be identified as APPLIED and the action description VOIDED when the ELFUP 8453 SSN and 8453 DLN is equal to the transcribed 8453 SSN and the 8453 DLN. The change status will be identified as NOT FOUND when the ELFUP 8453 SSN and 8453 DLN are not equal to the 8453 SSN and 8453 DLN which are stored on the TRDB database and displayed within IDRS CC R8453.

  7. For ELFUPR, the change status will be identified as APPLIED and the action description REPLACED when the ELFUP 8453 SSN and 8453 DLN are equal to the transcribed 8453 SSN and 8453 DLN. The change status will be identified as NOT FOUND when a transcribed 8453 SSN and 8453 DLN are not equal to the 8453 SSN and 8453 DLN which are stored on the TRDB database and displayed within IDRS CC R8453.

  8. For invalid DLN blocks that are re-numbered and re-input through ISRP, the change status will be identified as "RE-INPUT" .

3.42.5.16.17  (10-01-2010)
IDRS Command Code R8453 With a SSN Definer

  1. Access to an individual taxpayer's Form 8453/Form 8453-OL Record may be researched using IDRS CC R8453 with a valid SSN definer.

  2. Data displayed for the taxpayer will include:

    • 8453 correction history,

    • 8453 errors,

    • TRDB generated charge-outs,

    • the primary (and secondary) name,

    • the corresponding electronic return spouse SSN,

    • filing status,

    • return DLN,

    • return DCN,

    • return received date,

    • input source,

    • adjusted gross income,

    • total tax,

    • amount withheld,

    • refund/balance due amounts,

    • incomplete Form 8453/Form 8453-OL received (if applicable),

    • letter dates (if applicable),

    • undeliverable Letter 2936/Letter 2936A (if applicable).

3.42.5.16.18  (10-01-2011)
Form 8453 Attachments

  1. Acceptable attachments to be associated with Tax Year 2011 Form 8453 Transmittal include: Appendix A, Statement by Taxpayer Using the Procedures in Rev. Proc. 2009-20; Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes; Form 2848, Power of Attorney and Declaration of Representative (or POA that states that the agent is granted authority to sign the return); Form 3115, Application for Change in Accounting Method; Form 3468, Investment Credit Historic Structure Certificate; Form 4136, Credit for Federal Tax Paid on Fuels; Form 5713, International Boycott Report; Form 8283, Noncash Charitable Contributions, Section A, (if any statement or qualified appraisal is required) or Section B; Form 8332, Release of Claim to Exemption for Child of Divorced or Sepa rated Parents; Form 8858, Information Return of U.S. Persons with Respect to Foreign Disregarded Entities; Form 8864, Biodiesel and Renewable Diesel Fuels Credit; Form 8885, Health Coverage Tax Credit and Form 8949, Sales and Other Dispositions of Capital Assets.

  2. Acceptable attachments to be associated with Tax Year 2009 and 2010 Form 8453 Transmittal include: Appendix A, Statement by Taxpayer Using the Procedures in Rev. Proc. 2009-20; Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes; Form 2848, Power of Attorney and Declaration of Representative (or POA that states that the agent is granted authority to sign the return); Form 3115, Application for Change in Accounting Method; Form 3468, Investment Credit Historic Structure Certificate; Form 4136, Credit for Federal Tax Paid on Fuels; Form 5713, International Boycott Report; Form 8283, Noncash Charitable Contributions, Section A, (if any statement or qualified appraisal is required) or Section B; Form 8332, Release of Claim to Exemption for Child of Divorced or Sepa rated Parents; Form 8858, Information Return of U.S. Persons with Respect to Foreign Disregarded Entities; Form 8864, Biodiesel and Renewable Diesel Fuels Credit; Form 8885, Health Coverage Tax Credit and Schedule D-1, Continuation Sheet for Schedule D (Form 1040).

  3. If attachment(s) to Form 8453 Transmittal are received and there is no record of a Form 8453 periodically research CC R8453 to determine the receipt of Form 8453.

  4. When the Form 8453 DLN is located:

    1. Complete Form 9856, Attachment Alert, using the 8453 DLN

    2. Route the attachment(s) to the Files Unit where the Form 8453 was filed.

  5. If the Form 8453 DLN is not located:

    1. Input a TC 290-0 adjustment, using a non-refile blocking series,

    2. Leave an audit trail in the remarks section of the TC 290-0 adjustment stating "Attachment for Form 8453" ,

    3. Place all source documents (Form 8453 attachment) supporting the TC 290-0 in a folder,

    4. Label the outside of the folder with the Employee Number, Input Date and Type of Input, and

    5. Route the folder to the Files Unit upon completion of the action.

3.42.5.16.19  (09-06-2012)
Reviewing and Processing Substitute Forms 8453

  1. Substitute Form 8453 are permitted if they have been submitted to Headquarters for review and approval and must meet specifications outlined in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules.

  2. When the requests are received, an analyst reviews the form to determine if it can be used as a substitute. When a form is approved, a letter is sent to Providers to notify them of the approval and the number assigned to the substitute form. This number should be located on the bottom left corner of the form. If the form is rejected, a letter is also sent advising the Provider of the reasons for rejection.

  3. Receipt and Control Operations will send unprocessable substitute forms to e-help. When received, the Tax Examiner will call the Form 8453 analyst at Headquarters (with manager's approval) to verify that the form has been approved.

    If ... Then ...
    the form has been approved; send the Form 8453 to the Numbering Unit to be processed in the same manner as an official IRS form.
    the form was not approved: 1. Call the Provider and advise that an unapproved form has been submitted. Contact the Provider to secure another Form 8453 from taxpayer.
    2. Send the Form 8453 to the Numbering Unit for processing.
    the form cannot be processed; contact the ERO to secure another Form 8453 from the taxpayer.

  4. Monitor Providers who continuously submit unapproved substitute forms using local procedures and report to management to determine further action.

3.42.5.17  (10-01-2010)
Print Requests for Electronic Returns and Form 8453/Form 8453-OL

  1. IMF electronic returns are assigned unique DLNs. The Filing Location Code (FLC) in each DLN can be used to identify where an electronic return was filed. See IRM 3.42.5.2.2(3), Submission Processing Subsystems for the Filing Location Codes. For example, DLN 76211–110–036XX-X would indicate an electronic return was filed at Austin Submission Processing Campus.

  2. After an electronic return has been accepted into the Electronic Filing System (EFS), it can be viewed via IDRS CC TRDBV.

  3. IDRS CC TRDBV should be used for initial research on tax accounts in lieu of requesting prints of ELF returns.

3.42.5.17.1  (10-01-2010)
CP-55 Notices

  1. CP-55 notices, which are used for TY 97 and prior, will be routed to e-file Unit. When the DLN is not for your Submission Processing Campus, e-help will print the return and recharge it to the refiled DLN. When the refiled DLN is for your Submission Processing Campus:

    1. Place a label or stamp the CP-55, "The original electronically filed return is not attached to this adjustment document. If needed at a future time, you must request the 150 DLN" ;

    2. Send the CP-55 to the files unit.

  2. When an adjustment is made to an electronic return and the hardcopy return is used as a source document, it will be sent to the Files unit to be refiled under the renumbered DLN.

  3. When an adjustment is made to an electronic return without the hardcopy, and the IRM instructs the adjustment document to be associated with the return, the Tax Examiner will use the appropriate refile blocking series. A CP-55 will be generated and forwarded to e-help when the 18X blocking series is used prior to 1998.

3.42.5.17.2  (10-01-2010)
Processing Requests for Form 8453/Form 8453-OL

  1. Form 8453/Form 8453-OL are processed by a unique DLN. This DLN is not the same as the return DLN.

  2. Form 8453/Form 8453-OL are numbered with Tax Class 2 and Document Code 59. The Filing Location Code will be the same as for a paper document for that Submission Processing Campus.

    Tax Year 1999 through Tax Year 2001 Returns Filed Form 8453/8453-OL Submissions
    Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, and all APO/FPO addresses (except Asian/Pacific) Andover (FLC 16) Andover (FLC 08)
    Illinois, Iowa, Kansas, Minnesota, Missouri, New Mexico, Oklahoma, Texas, Wisconsin Austin (FLC 76) Austin (FLC 18)
    Florida, Indiana, Kentucky, Michigan, Ohio, South Carolina, West Virginia Cincinnati (FLC 38) Cincinnati (FLC 17)
    Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Tennessee Memphis (FLC 72) Memphis (FLC 49)
    Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nebraska, Nevada, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and all Asian/Pacific APO/FPO addresses Ogden (FLC 93) Ogden (FLC 29)

    Tax Year 2002 Returns Filed Form 8453/8453-OL Submissions
    Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, and all APO/FPO addresses (except Asian/Pacific) Andover (FLC 16) Andover (08)
    Illinois, Iowa, Kansas, Minnesota, Missouri, New Mexico, Oklahoma, Texas, Wisconsin Austin (FLC 76) Austin (FLC 18)
    Florida, Indiana, Kentucky, Michigan, Ohio, South Carolina, West Virginia Cincinnati (FLC 38) Andover (FLC 08)
    Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Tennessee Memphis (FLC 72) Memphis (FLC 49)
    Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nebraska, Nevada, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and all Asian/Pacific APO/FPO Ogden (FLC 93) Austin (FLC 18)

  3. For Tax Year 2003 and subsequent, the Form 8453/Form 8453-OL DLN information, if available, is obtained by using IDRS CC TRDBV or CC R8453. After the Form 8453/Form 8453-OL DLN is obtained, IDRS CC ESTAB is used to request the Form 8453/Form 8453-OL from Files.

  4. For Tax Year 2002 and prior, Form 8453/Form 8453-OL DLN information is no longer available using CC ELFRQ. If no DLN information is available then Form 8453/Form 8453-OL cannot be requested from Files.

  5. When a print request is received in e-help, the requester will not automatically receive Form 8453/Form 8453-OL. e-help will service requests for Form 8453/Form 8453-OL:

    • Appeals;

    • Fraud Detection Center (FDC);

    • Taxpayer Photocopy Unit (Reimbursable).

3.42.5.17.3  (10-01-2010)
Attaching Documents to Electronic Returns

  1. When the taxpayer or ERO submits miscellaneous documents or correspondence to e-help that requires association with an electronic return, the miscellaneous documents must be associated with the renumbered return DLN or the Form 8453/Form 8453-OL DLN. Documents or correspondence cannot be attached to the electronic return DLN.

    Note:

    Only required supporting documents listed on the Form 8453 should be associated with Form 8453/Form 8453-OL.

  2. If the return has been renumbered:

    1. Complete Form 9856, Attachment Alert, using the renumbered DLN,

    2. Route to the Files Unit where the Form 8453 was filed.

  3. If the return has not been renumbered, research CC TRDBV for the Form 8453 DLN:

    1. If a Form 8453 DLN is present, prepare Form 9856, Attachment Alert, using the Form 8453 DLN and send the materials to be associated to the Files Unit.

    2. If a Form 8453 DLN is not present or the electronic return was filed with a PIN signature method, input TC 290.00 adjustment, using a non-refile blocking series and route to the File Unit upon completion of the adjustment action.

3.42.5.18  (10-01-2010)
Federal/State Electronic Filing

  1. Federal/State Electronic Filing is a cooperative one-stop filing program between Internal Revenue Service (IRS) and state tax administration agencies. This project allows the filing of both federal and state income tax returns through the IRS Electronic Filing System (EFS).


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