The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition Image Processing System (SCRIPS). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them. It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section. The computer and/or Error Correction (Resolution) will perform these functions if the returns and other documents are coded and edited as prescribed in the applicable subsections of this section

Authority for these procedures is found in the following laws and associated regulations:

All Policy Statements for Submission Processing are contained in IRM 1.2.1.

The Campus Director, is responsible for monitoring operational performance for the Submission Processing campus

The Operations Manager is responsible for monitoring operational performance for their operation.

The Team manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties

The team employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Goal: Ensure documents are code and edit ready for transcription.

Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of inventories used for processing.

Program Effectiveness:

Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration.

Federal Managers Financial Integrity Act (FMFIA).

Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

The table lists commonly used acronyms and abbreviations and their definitions

The table lists Interpretation Words and their definitions.

The following resources may assist in performing the work as outlined in this IRM.

The purpose of the BMF Consistency initiative is to achieve consistency in the BMF Code and Edit processing IRMs.

Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency

IRM 3.11.106 is exempt from BMF Consistency Guidelines, (for example indicating diamonds) as shown in other sections of IRM 3.11, Returns and Document Analysis.

The text in normal print within a consistency section signifies the common processes to be used for all BMF returns. The text in bold print is form specific and applies to this IRM only.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevate through proper channels for executive approval.

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98) Section 3705(a), gives identification requirements for all IRS employees working tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and should give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

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

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19 Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).,

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can’t be taken to resolve the taxpayer's issue the same day.

The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

When making a TAS referral use Form 911, and forward to TAS following your local procedures.

See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

BMF Identification Theft is increasing. If case is found with attachments or correspondence showing the taxpayer is a victim of ID Theft, give the entire case to your senior/lead.

The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

See IRM 25.16, Disaster Assistance and Emergency Relief, for specific conditions that qualify a taxpayer for relief.

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

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

Estate and Gift returns should not be going through this inventory system, but if you have a Form 706 or Form 709 series return stamped as a CIS image in your batch of work, prepare Form 4227, Intra-SC Reject or Routing Slip, and route to Kansas City Submission Processing Error Resolution Team.

Review all attachments to the return before the return can be considered processable.

Follow the general guidelines below written for each attachment.

Sort Estate tax returns (Form 706 United State Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return) into blocks of 15 or less.

Sort Gift tax returns Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Form 706-GS(D) Generation-Skipping Transfer Tax Return For Distribution and Form 706-GS(T), Generation-Skipping Transfer Ta Return for Terminations, into blocks of 50 or less. See IRM 3.10.72, Campus Mail and Work Control - Extracting, Sorting, and Numbering.

Separate accounting controls are established for each block created.

The following table pertains to Unprocessables conditions for more than one tax period:

Estate Tax Returns need the following information:

If any of the above items are missing or cannot be perfected, prepare Form 4227, Intra-SC Reject or Routing Slip and route to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation. Exception: Correspond for signature of Executor or one coexecutor.

Gift Tax Returns need the following information:

If the return is incomplete (i.e., only page 1 and/or 2 are present with money amounts), continue processing.

The Internal Revenue Code required quarterly gift tax returns for tax periods 197012 to 198012. If Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return for these periods are received, route the returns to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation on Form 4227, Intra-SC Reject or Routing Slip.

Taxpayers use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, for a list of recognized frivolous arguments made by taxpayers.

Review the return to decide whether it appears to be a frivolous return.

Recognized frivolous arguments made by taxpayers include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program, shown below:

A "Tentative" estate or gift tax return on the appropriate form showing only the taxpayer's name, address, and estimated amount of tax due is not considered a complete return since it does not contain a signature, information about the decedents gross estate (Form 706), United States Estate (and Generation-Skipping Transfer) Tax Return, or the total gifts of donor (Form 709), United States Gift (and Generation-Skipping Transfer) Tax Return, and allowable deductions, credits and prepayments.

An estate or gift tax return containing only the taxpayer's name and referring to various constitutional provisions which are said to excuse filing a return should be treated as a "no entry return" , invalid, and Unprocessables.

A bare statement of gross/net estate (Form 706), United States Estate (and Generation-Skipping Transfer) Tax Return, or total gifts ( Form 709),United States Gift (and Generation-Skipping Transfer) Tax Return constitutes an invalid and Unprocessables return.

An estate or gift tax return which is blank, except for the heading and the signature, is considered as a "no entry return" , invalid and Unprocessables.

If correspondence is not needed for Unprocessables items, the statute begins when IRS receives the return. If correspondence is needed, the statute begins when the reply is received.

For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete items, include in the letter to resubmit in U.S. currency.

A new Schedule PC, Protective Claim for Refund, has been added (August 2012 revision) to Form 706, United Stated Estate (and Generation-Skipping Transfer) Tax Return if Schedule PC is attached, copy the schedule and route to Cincinnati Field Support Operation Estate and Gift Mail Stop 824G. Leave the original with the return notating a copy was sent and continue processing.

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the (IRC) include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

If Criminal Investigation has stamped the return, do not send for further CI action.

For returns with refund claims do the following:

Because of the repetitive nature of the Code & Edit function, Code & Edit Tax Examining technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If Code & Edit finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, Criminal Investigation is available to review the referral.

If a suspicious return is found, do the following:

The primary goal in identifying tax returns for Examination (Exam) is to promote the highest degree of voluntary compliance. Exam gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any to refer questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

Reprocess a return attempting to post or posted to the wrong account or module to the correct module.

Each re-entry return must have a Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Returns, attached. This will indicate to the examiner that special handling is required.

Always leave a Form 3893, Re- Entry Documents, or Form 13596, Reprocessing Returns, on the front of the return. It must remain as a permanent part of the return.

Examine Form 3893, Re-Entry Documents, or Form 13596, Reprocessing Returns, to determine the action needed to make the return processable.

Compliance functions (Collections and Examination) secure returns from the taxpayer and also prepare returns if the taxpayer does not provide them.

Compliance notates:

The following information pertains to obsolete returns:

The Error Resolution System (ERS) replaced the input perfection procedures for manual corrections to paper Error Register.

ERS displays data on terminal display screens with corrections made and integrity verified in a real time environment.

The Document Perfection tax examiner will have the first opportunity to identify a record having a problem which requires correspondence, research or other action in order to make the return processable.

Action Codes are used to indicate whether correspondence, research, or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.

When necessary, assign a 3- digit action code.

Action codes are valid on Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non-Resident Alien) and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. Any other returns are processed through a manual correction system. Use CCC "U" on these returns when action such as correspondence is needed.

Edit Action Codes in the bottom left margin of the return for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return and Form 709, United States Gift (and Generation -Skipping Transfer) Tax Return, (See Figure 3.11.106-4, Action Code and Form 3696, Correspondence Action Sheet.)

Figure 3.11.106-4

Action Code and Form 3696, Correspondence Action SheetSummary: This is an example of editing action codes in the bottom left margin of Form 706, United States Estate (and Generation-Skipping Transfer)Tax Return, Form 706-NA, United States Estate (Generation-Skipping Transfer) Tax Return (Non-resident Alien), and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Non-resident Alien). This example also shows a stamped IRS received date.

Please click here for the text description of the image.

Edit Action Codes for Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, (Non - Resident Alien),in the bottom center margin of the return.

Assign Action Codes in the following priority order:

Use the following table if more than one Action Code is needed:

Attach Form 4227, Intra-SC Reject or Routing Slip when more than one Action Code is needed. Edit the Action Code with the shortest suspense period on the form and edit the second Action Code on Form 4227, Intra-SC Reject or Routing Slip.

Edit the following Action Code when a return cannot be perfected:

Continue perfecting the return after editing the Action Codes.

Valid Action Codes are listed below:

Some of the conditions in which Form 706, United State Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non - Resident Alien) and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, would be assigned an Action Code (AC) are described in the following: See IRM 3.11.106.9.3.1, AC 610/611, and IRM 3.11.106.9.3.2, AC 620.

The Action Codes used throughout the handbook are the codes to be edited for those specific situations. The following is a list of codes that are valid for Document Perfection use and may be used for other situations that may arise during processing. The codes, their meanings, suspense periods, and function are as follows:

Edit CCC "A" to identify 2010 (ONLY) revisions (with a 2010 tax period) of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, if there are any dollar amount entries (other than zero) anywhere on Page 2, Schedule A, Parts 2 or 3, or on Page 4, Schedule C (other than Exemption amounts (only) shown in Part 2, Lines 1, 3, and/or 8).

Edit this code to identify Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, containing references or indications the return was for the estate of a victim killed in a terrorism attack.

If a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, return is annotated at the top of Page 1 of the return "(IRC) Section 2201" or has any indications the return is the result of legislation impacting victims of terrorist attacks (April 19, 1995 - Oklahoma City bombing; September 11, 2001 - World Trade Center bombing; or references to deaths resulting from anthrax that occurred on or after September 11, 2001, and before January 1, 2002):

We will no longer code CCC "D" if the taxpayer requests abatement for "Failing to Pay Timely" Taxes when the return is submitted.

For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, series returns, the Cincinnati Field Support Operations Campus Estate and Gift will make a determination regarding reasonable cause and assess any penalty(ies), etc., against the account, if applicable. They have determined the return(s) should be processed through the pipeline (without delay) while they are making their determination of reasonable cause and assessments of applicable penalties.

The following instructions apply for handling of Form 706 and Form 709 series returns:

If a Cincinnati Field Support Operation Campus Estate and Gift representative visits Code and Edit for an on-site review for determination(s) of reasonable cause, proceed as follows:

Edit CCC "F" when the Final Return Box is checked or there in another indication the taxpayer is not liable for future returns. Notations may include but are not limited to:

CCC "F" on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, indicates this is the last return of a donor who died.

See IRM 3.11.106.10.5.1, Amended Returns.

Edit CCC "L" when the taxpayer has written "(IRC) Section 6114" on the top of the return or Form 8833, Treaty - Based Return Position Disclosure Under (IRC) Section 6114 or 7701(b), is attached to the return.

CCC "O" is edited when a Pre-Settlement Manual Refund will be made and a Form 3753, Manual Refund Posting Voucher; Form 5792, Request for IDRS Generated Refund (IGR); or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, SSN, and Tax Period on the return is the same as the data on the form.

When issuing CCC "O" :

We will no longer code CCC "R" if the taxpayer requests abatement for failing to timely file when the return is submitted.

See IRM 3.11.106.18.3.2 if a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is received with an original Form 709, United States Gift and (Generation-Skipping Transfer) Tax Return, with an approved extension of time to file.

For Form 706 and Form 709, series returns, the Cincinnati Field Support Operations Campus Estate and Gift will make a determination regarding reasonable cause and assess any penalty(ies), etc., against the account, if applicable. They have determined the return(s) should be processed through the pipeline (without delay) while they are making their determination of reasonable cause and assessments of applicable penalties.

The following instructions apply for handling of Form 706 and Form 709 series returns:

If a Cincinnati Functional Security Officer Campus Estate and Gift representative visits Code and Edit for an on-site review for determination(s) of reasonable cause, proceed as follows:

Edit CCC "U" on any return that has an unprocessables condition. This applies only to the Form 706-GS(D), Generation-Skipping Tax Return for Distribution, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non - Resident Alien) and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, see IRM 3.11.106.9, ERS Coding Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non - Resident Alien), and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return only for the appropriate Action Code to use for unprocessables conditions.

CCC "W" is used when the return has been cleared by Statute Control. See IRM 3.11.106.10.10.1, Statute Returns.

Edit CCC "X" :

The CCC "Y" is used by different programs to designate a "yield" condition (and is used by other BMF programs to represent a change in the accounting period). However, for the Form 706, United States Estate (and Generation-Skipping Transfer (Tax Return) and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, CCC "Y" designates a yield condition for 4 entirely different reasons.

Edit a CCC "Y" when either of the following conditions apply:

The following information pertains to Combat Zone returns:

The following information pertains to "Early Filed remittance returns" :

Figure 3.11.106-5

Computer Condition CodeSummary: This is an example of a Form 709 tax return showing the placement of CCC Y in the upper left hand corner on early filed, remittance returns. The early filed return also shows the month and year it was actually received (1604). There is a text box that states: ONLY edit CCC Y on early filed, remittance returns. There is a text box that states:Early filed returnRemittance indicated on Page 1, Form 709

Please click here for the text description of the image.

Edit a CCC "Y" on Form 709, United State Gift (and Generation-Skipping Transfer) Tax Return, filed by non-residents who are not United States citizens.

Edit CCC "3" when either the taxpayer fails to respond to correspondence or when correspondence is returned undeliverable. It will suppress credit interest from being generated.

The Cincinnati Compliance Services, Estate and Gift Tax Campus Operation, will make all determinations of reasonable cause for all Form 706, Unites States Estate (and Generation-Skipping Transfer) Tax Return. and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, tax returns.

If a Compliance Services representative visits Code and Edit for an onsite review for determination(s) of reasonable cause, proceed as follows:

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

If the return is incomplete and appears to be a duplicate, give the return to the lead. The lead research for a Transaction Code (TC) 150 and any other information necessary to determine if the return should continue to be processed. If research determines a duplicate return, see ,IRM 3.11.106.10.5.1, Amended Returns, and continue processing. A duplicate return could include any of the following:

Examine the return for all unprocessable conditions before initiating correspondence.

The following information pertains to TC 59X:

Taxpayer may send tax information in via fax as part of return perfection even when submitting signature. In circumstances where contact with the taxpayer has was and documented, fax signatures are acceptable. For information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at: http://imdtrack.web.irs.gov/IG_Uploads/IRS.gov_No/10-29-19%20Clarification%20of%20Policy%20for%20Use%20of%20Fax%20in%20Taxpayer%20Submissions.pdf

Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

Indicate the fax paragraph on the approved Correspondence Action Sheet. To inform taxpayer of the fax options

Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

Before leaving any messages on a taxpayer's answering machine, review:

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP) system. Enter edit marks in brown, red, orange, purple, or green pencil or pen.

Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

Do not re-edit edit marks entered by other areas, such as Collections, Entity or Accounts Management, except to place the marks in the correct area or perfect for legibility.

Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.106.2.7, Correspondence Imaging System (CIS) Returns, and IRM 3.11.106.4.10 Re-Entry Document Procedures.

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

A≡ ≡ ≡ ≡ ≡ ≡ ≡ is administratively granted for receiving most tax returns after the last day prescribed for filing such returns. This≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ applies to a return filed under an extension of time as well as to returns subject to regular filing requirements, except that interest is not exempt for the extension period of time.

The Paid Preparer Checkbox is located next to the taxpayer signature area on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, It indicates whether the taxpayer has elected to allow the Paid Preparer to answer questions about the return as it is processed.

No action is required on amended returns.

Take the following actions when an entry is present in the Paid Preparer Checkbox on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return:

The Preparer's Social Security Number (SSN) or Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's signature in the PTIN box at the bottom right corner of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non - Resident Alien)Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution, Form 706-GS(T), Generation-Skipping Transfer Tax Return for Termination, and Form 709 ,United States Gift (and Generation-Skipping Transfer) Tax Return, (Page 1).

No action is required on amended returns.

A valid PTIN begins with the alpha "P" followed by an eight digit number (e.g., PXXXXXXXX). Circle the SSN/PTIN if it is invalid, all zeros or nines.

The Firm's EIN is located below the Preparer's PTIN box at the bottom right corner of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non - Resident Alien), Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution, Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, and Form 709, United States Gift (and Generation-Skipping Transfer Tax Return, (Page 1).

No action is required on amended returns.

The Firm's EIN is a 9 digit number. Circle the EIN if all zeros or nines.

The Paid Preparer's Phone Number is located below the Firm's EIN (EIN for 2009 and prior revisions) at the bottom right corner of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer Tax Return (Non - Resident Alien), Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

No action is required on amended returns or if the number is more than 10 digits.

If the Paid Preparer's Phone Number is illegible or less than 10 digits, circle the phone number.

An Early Filed Return is defined as a return whose IRS received date is prior to the tax period ending date.

Do Not ProcessForm 706, United States Estate (and Generation-Skipping Transfer Tax Return with the date of death for current year January to June of said year processing. IRM 3.11.106.2 General Information (2) for processing instructions.

Never send back an Early Filed return to the taxpayer.

See IRM 3.11.106.23.6, Tax Period Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, for instructions for tax period editing of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

If the Form 706or Form 709 indicates bankruptcy (e.g.,shows RECEIVERTRUSTEE OR DEBTOR IN POSSESSION, or ) in the entity area or on an attachment, route to Entity Control using local procedures Form 13934, Entity Document /C&E Merge Transmittal.

The SSN is a 9 digit number (XXX-XX-XXXX) assigned to identify the taxpayer.

Determine the SSN as follows:

The name control consists of 4 characters or less:

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

Edit the name control as follows:

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

Ensure that the "in-care-of" name is located above the street address:

Perfect the address when the mailing address (Street or PO Box) is not easily identified.

Perfect the address as follows:

The U.S. Postal Service established new address requirements for Army Post Office (APO), Domestic Post Office (DPO), and Fleet Post Office (FPO) addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation (APO AE 091XX) based on the following ZIP codes:

Figure 3.11.106-6

Entity Edit MarksSummary: This is an example of a Form 706 showing the following editing procedures in the entity section:Underline name control.Edit TC 014.Edit ZIP code.

Please click here for the text description of the image.

A foreign (international) address is any address that is not in the 50 states or the District of Columbia.

Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses. Entity Perfection - Domestic Address.

Route returns with a foreign (international) address (Form 706, United State Estate (and Generation-Skipping Transfer) Tax Return and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return series returns) to Kansas City Submission Processing Campus (KCSPC) for processing. Prepare Letter 86C, Referring Taxpayers Inquire/Form to Another Office to inform the taxpayer IRS sent the return KCSPC.

Consider returns with addresses in the following U.S. Possessions/Territories as a foreign (international) address for processing purposes. Edit in the same way as domestic addresses.

All other foreign (international) addresses are edited the same as a domestic address with the following exceptions:

In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province/territory.

The Entity portion of the Form 706 includes the following:

CCCs B, D, G, L, O, R, W, Y, X, 3 and 7 are valid for Form 706

See IRM 3.11.106.10, Computer Condition Codes, for specific definitions.

Form 706, tax returns are filed at Kansas City Submission Processing Center (KCSPC).

Form 706 must be filed for individuals with estates that have the following:

Tax is due when return is due, unless deferred payment under (IRC) Section 6161(a) or Section 6163 has been granted, or unless Executor has properly elected to pay by installments under (IRC) Section 6166.

See Form 706, Lines 5 and 6 of Page 2 on 1985 and prior revisions, or Lines 3 and 4 on subsequent revisions.

Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, (Part III) can be used to apply for an Extension of Time to Pay Estate Tax.

Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer Taxes, (Part III) only applies to Extension of Time to File.

All numbered Forms 706, will be assigned Document Locator Numbers (DLNs) and blocked before sending to Document Perfection.

All unnumbered Form 706, will be numbered after Code and Edit.

Expedite processing of estate tax returns so that executors can obtain discharge from personal liabilities and final distribution can be made to beneficiaries, examination of the returns is necessary.

Manual math verification of the return is not required. The computer will check the transcribed totals and any changes or corrections will be performed by ERS (Error Resolution System) examiners.

Cincinnati Field Support Operations will correspond for supporting schedules, if missing, for estates that have the following: